/raid1/www/Hosts/bankrupt/TCR_Public/100614.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
Monday, June 14, 2010, Vol. 14, No. 163
Headlines
1806 GREEN STREET: Voluntary Chapter 11 Case Summary
5425 S.M.B.: Case Summary & 2 Largest Unsecured Creditors
ADVANCED ENVIRONMENTAL: Posts $397,000 Net Loss for Q1 2010
AGE REFINING: Court to Consider Appointment of Trustee on June 23
ALFRED DOLCE: Case Summary & 20 Largest Unsecured Creditors
ALFRED VILLALOBOS: Case Summary & 20 Largest Unsecured Creditors
ALTERRA CORNERS: Voluntary Chapter 11 Case Summary
AMERICAN INT'L: U.S. Faces "Severe" Losses over AIG Rescue
AMR CORP: Appoints Garton as President & CEO of American Eagle
AMR CORP: Appoints Garton as President & CEO of American Eagle
ARVINMERITOR INC: S&P Raises Corporate Credit Rating to 'B-'
ASARCO LLC: Fails to Nix $7M in DOJ, State Ch. 11 Bills
AUTO PROPERTIES: Voluntary Chapter 11 Case Summary
AVAYA INC: Bank Debt Trades at 15% Off in Secondary Market
BARNEYS NEW YORK: S&P Affirms 'CCC' Corporate Credit Rating
BEACONLIGHT INC: Financial Problems Prompt Chapter 11 Filing
BEACONLIGHT INC: Voluntary Chapter 11 Case Summary
BEST CARE: Case Summary & 20 Largest Unsecured Creditors
BIOMET INC: Bank Debt Trades at 4% Off in Secondary Market
BLOCKBUSTER INC: In Talks for $150MM DIP Loan; NCR Tie-up Rumored
BMB MUNAI: Enters Agreement to Amend Note Redemption Terms
BOMBARDIER INC: Fitch Affirms 'BB+' Issuer Default Rating
BROOKSTONE CO: S&P Lowers Credit Rating to 'CC'; PR Corrected
BROWN PUBLISHING: Court Considers Further Use of Cash on June 17
CABLEVISION SYSTEMS: Has Deal to Buy Bresnan for $1.36 Billion
CAPMARK FIN'L: Has Access to Cash Collateral Until January 2011
CAPMARK FIN'L: Wins Nod for Deloitte as Tax Advisor
CARDIMA INC: Posts $3.5 Million Net Loss in Q1 2010
CARL LYDAY: Case Summary & 20 Largest Unsecured Creditors
CBGB HOLDINGS: Files for Chapter 11 in Manhattan
CHURCH & DWIGHT: Moody's Reviews 'Ba1' Rating for Possible Upgrade
CIMINO BROKERAGE: Allocates $100,000 for Unsecured Creditors
CINCINNATI BELL: Inks 6th Amended Receivables Agreement with PNC
CINEMARK INC: Bank Debt Trades at 2% Off in Secondary Market
CLAIRE'S STORES: Bank Debt Trades at 17% Off in Secondary Market
CLEARWATER PAPER: S&P Keeps 'BB' Rating, Hikes Outlook to Positive
COLONIAL BANCGROUP: Unit Files for Chapter 7 Protection
COMMUNITY HEALTH: Bank Debt Trades at 7% Off in Secondary Market
CONG CHABAD-LUBAVITCH: Voluntary Chapter 11 Case Summary
CONJUCHEM BIOTECHNOLOGIES: Creditors OK Plan of Reorganization
CONTINENTAL AIRLINES: Hires Bain & Co. to Advise on UAL Merger
CONTINENTAL AIRLINES: Pilots Want Equity in Combined Company
COYOTES HOCKEY: Iced Edge Taps HighGround for Acquisition
CRACKER BARREL: Bank Debt Trades at 3% Off in Secondary Market
CRESCENT RESOURCES: Successfully Emerges from Chapter 11
CRESCENT RESOURCES: Sues Former CEO Over $2.4 Mil. in Tax Payments
CRYSTAL RIVER: Swings to $32.9 Million Net Income in Q1 2010
CYTOMEDIX INC: Posts $1.1 Million Net Loss in Q1 2010
DANIEL DWYER: Case Summary & 20 Largest Unsecured Creditors
DEATH ROW: Dr. Dre May Pursue Royalties; Other Claims Barred
DELTATHREE INC: Posts $472,000 Net Loss in Q1 2010
DENA MENDES: Case Summary & 8 Largest Unsecured Creditors
DENNY'S HOLDINGS: Moody's Retains 'B2' Corporate Family Rating
DREXELVIEW CLUB: Voluntary Chapter 11 Case Summary
EAST GADSDEN: Wants to Sell Parcel of Land for $3.75 Million
EDGEN MURRAY II: Moody's Junks Corporate Family Rating from 'B3'
EDWARD MACDONALD: Case Summary & 18 Largest Unsecured Creditors
E.F.L. PARTNERS: Files List of Largest Unsecured Creditors
E.F.L. PARTNERS: Files Schedules of Assets and Liabilities
E.F.L. PARTNERS: Taps McCullough Eisenberg as Bankruptcy Counsel
ELAINE'S RESTAURANT: Case Summary & Largest Unsecured Creditor
EMISPHERE TECHNOLOGIES: Inks Collaboration Deal with Novartis
FAIRPOINT COMMS: Bank Debt Trades at 27% Off in Secondary Market
FAIRPOINT COMMS: Committee Insists on Rule 2004 Exam on Verizon
FAIRPOINT COMMS: Amends Quarterly Financials for 2009
FAIRVUE CLUB: Hearing on Disclosure Statement Set for June 22
FARIBORZ NOURI: Case Summary & 20 Largest Unsecured Creditors
FILI ENTERPRISES: Cash Collateral Hearing Continued until June 21
FLINT TELECOM: Posts $8.5 Million Net Loss in Q3 Ended March 31
FLOYD BARNES: Case Summary & 28 Largest Unsecured Creditors
FORUM HEALTH: Ardent Health to Acquire Assets for $69.9 Million
FREESCALE SEMICON: Bank Debt Trades at 13% Off in Secondary Market
FREESCALE SEMICON: To Pay Interest on Senior Notes in Cash
FX LUXURY: Proofs of Claim Must Be Filed by June 30
GARLOCK SEALING: Wants to Grant Admin. Status to InterCo. Claims
GARLOCK SEALING: Proposes to Continue Parent Services Deals
GARLOCK SEALING: Intends to Honor Prepetition Employee Obligations
GENERAL GROWTH: Clerk Reports on Claim Transfers for May
GENERAL MARITIME: Moody's Reviews 'B1' Corporate Family Rating
GENERAL MARITIME: S&P Downgrades Corporate Credit Rating to 'B'
GENERAL MOTORS: Berlin Rejects GM's EUR1.1 Bil. Opel Aid Request
GENERAL MOTORS: Court Approves Revision of Brownfield Rates
GENERAL MOTORS: JPMorgan Asks for Dismissal of Committee Suit
GENERAL MOTORS: Old GM Selling Wilmington Plant for $20 Mil.
GREEKTOWN HOLDINGS: Plan Proponents Seek Nod for Exit Documents
GREEKTOWN HOLDINGS: Taps Osipov Bigelman as Conflicts Counsel
GREEKTOWN HOLDINGS: Commences Avoidance Actions
HARRAH'S ENTERTAINMENT: Enters Deal to Acquire Thistledown
HARVEST OAKS: Has Access to Secured Lender's Cash until June 30
HCA INC: Bank Debt Trades at 6% Off in Secondary Market
HEALTH MANAGEMENT: Bank Debt Trades at 7% Off in Secondary Market
HEALTHSOUTH CORP: Reports of "Good Performance" through May
HENRICA'S RESTAURANT: Files for Chapter 11 Protection
HERCULES OFFSHORE: Bank Debt Trades at 14% Off in Secondary Market
HEXION SPECIALTY: Unit Agrees to Guarantee Sr. Secured Facility
HILL ENTERPRISES: Case Summary & 20 Largest Unsecured Creditors
HOWARD RIFAS: Voluntary Chapter 11 Case Summary
HUNTSMAN ICI: Bank Debt Trades at 7% Off in Secondary Market
I & C PROPERTY: Leslie S. Osborne Appointed as Chapter 11 Trustee
INN AT MISSOURI: Files Schedules of Assets and Liabilities
ISLE OF CAPRI: Bank Debt Trades at 7% Off in Secondary Market
JAMES FRAMPTON: Case Summary & 17 Largest Unsecured Creditors
JERSEY ISLAND: Case Summary & 7 Largest Unsecured Creditors
JIMENEZ LOPEZ: Case Summary & 20 Largest Unsecured Creditors
JMR HOLDINGS: Case Summary & 5 Largest Unsecured Creditors
JOHN BRATTON: Voluntary Chapter 11 Case Summary
JOHN MANEELY CO: Bank Debt Trades at 6% Off in Secondary Market
K-V PHARMACEUTICAL: Restructures Senior Executive Management
KAINOS PARTNERS: Wants Case Converted to Chapter 7 Liquidation
KASTLE KIDZ: Case Summary & 13 Largest Unsecured Creditors
KYLE FAIR: Voluntary Chapter 11 Case Summary
LA BOTA: Rock Tech's Cash Collateral Hearing Set for Today
LA BOTA: Taps HughesWattersAskanase as Bankruptcy Counsel
LANE GORDON: Voluntary Chapter 11 Case Summary
LASK HOLDINGS: Voluntary Chapter 11 Case Summary
LAUREATE EDUCATION: Bank Debt Trades at 10% Off
LENOX HILL: Moody's Reviews 'Ba1' Rating on $127 Mil. Bonds
LINGHAM RAWLINGS: Voluntary Chapter 11 Case Summary
LIONS GATE: Icahn Issues Open Letter to Firm's Board of Directors
LNR PROPERTY: Moody's Reviews 'Ca' Corporate for Upgrade
LUCKY CHASE: Ch. 11 Trustee Can Use Cash Collateral until July 2
M. A. GONZALEZ: Case Summary & 3 Largest Unsecured Creditors
MADISON 124: Voluntary Chapter 11 Case Summary
MARK FELTS: Case Summary & 20 Largest Unsecured Creditors
MARK GINSBURG: Barry E. Mukamal Named as Chapter 11 Examiner
MARK PHILLIPS: Voluntary Chapter 11 Case Summary
MCINTOSH BANCSHARES: Posts $7.9 Million Net Loss in Q1 2010
METRO-GOLDWYN-MAYER: Bank Debt Trades at 55% Off
MIDWEST BANC: NASDAQ to Delist Common And Preferred Stock
MIGUEL LOPEZ: Case Summary & 12 Largest Unsecured Creditors
MONEYGRAM INT'L: Inks Agreement with Sr. VP Jean C. Benson
MOVIE GALLERY: 5 Landlords Want Lift Stay to Pursue Remedies
MOVIE GALLERY: Gets More Time to File Liquidation Plan
MOVIE GALLERY: Lease Decision Period Extended Until Aug. 31
MSJ INVESTMENT: To Fully Pay Unsecured Claims from Plan Fund
NAVISTAR INT'L: Posts $43 Million Net Income for April 30 Quarter
NEC HOLDINGS: National Envelope Files for Chapter 11
NEC HOLDINGS: Case Summary & 30 Largest Unsecured Creditors
NEFF CORP: Disclosure Statement Confirmation Hearing on July 12
NEIMAN MARCUS: Moody's Upgrades Corporate Family Rating to 'B3'
NORTH AMERICAN REFRACTORIES: Selling Zircoa, Inc., Equity Stake
NORTHBROOK DEVELOPMENT: Case Summary & Creditors List
NOVADEL PHARMA: Selects Craig Johnson as Chief Financial Officer
NOVADEL PHARMA: Reports $4 Million Working Capital at March 31
O&G LEASING: Final Hearing on Cash Collateral Use Set for June 25
OLD TIME: Court Approves Plan; Bankruptcy Exit by June's End Seen
OPPENHEIMER HOLDINGS: Moody's Changes Outlook to Stable
ORLUN JONES: Case Summary & 20 Largest Unsecured Creditors
PANAMSAT CORP: 3 Bank Debts Trade at 6% Off in Secondary Market
PATRICK MALONEY: Files Schedules of Assets and Liabilities
PGI INCORPORATED: Posts $1.2 Million Net Loss in Q1 2010
PINE ISLAND: Case Summary & Largest Unsecured Creditor
PMA CAPITAL: Fitch Puts 'BB+' Senior Debt Rating on Positive Watch
PMA CAPITAL: Puts Ba3 Sr. Debt Rating on Review for Poss. Upgrade
PMP II LLC: Equity Holders Transfer Rights to Bagelpipe LLC
PROGNOZ SILVER: Starts Bankruptcy Proceedings
RICARDO BOPP: Court Dismisses Chapter 11 Bankruptcy Case
RICHARD J HINDIN: Plan Provides for Sale of Virginia Properties
RITA MENDOZA: Case Summary & 11 Largest Unsecured Creditors
ROBERT RUBIANO: Case Summary & 20 Largest Unsecured Creditors
RPM HOLDINGS: Case Summary & 11 Largest Unsecured Creditors
RPM INTERNATIONAL: Performance Coating Buys Hummervoll of Norway
RUTH SULLIVAN: Case Summary & 13 Largest Unsecured Creditors
SD TRUST: Taps Cooper Law Firm to Handle Reorganization Case
SEE KYMM: Case Summary & 12 Largest Unsecured Creditors
SHANTRE INVESTMENTS: Case Summary & 12 Largest Unsecured Creditors
SILGAN HOLDINGS: S&P Affirms 'BB+' Rating; Outlook Now Stable
SPECIALTY PRODUCTS: Taps Richards Layton as Co-Counsel
SPECIALTY PRODUCTS: May Hire Logan & Co. as Claims Agent
SPECIALTY PRODUCTS: Hires Jones Day as Bankruptcy Counsel
SPIRIT AIRLINES: Halts All Flights Thru Tuesday Amid Pilot Strike
SPIRIT FINANCE: S&P Downgrades Corporate Credit Rating to 'SD'
SPRINGFIELD GREEN: Voluntary Chapter 11 Case Summary
SRV & ASSOCIATES: Court Dismisses Reorganization Case
STANT CORP: Unsecured Creditors to Recover Up to 3.01% of Claims
STUDIO CITY: Voluntary Chapter 11 Case Summary
SUK HEE SUH: US Trustee Wants Case Converted to Ch. 7 Liquidation
SUNGARD DATA: Bank Debt Trades at 4% Off in Secondary Market
SUNGARD DATA: Bank Debt Trades at 6% Off in Secondary Market
SVS HOLDINGS: Case Summary & 4 Largest Unsecured Creditors
TERRI BOWERSOCK: Files for Chapter 7 Bankruptcy in Phoenix
TEXAS CLASSIC: Plan Outline Hearing Continued until June 16
TEXAS CLASSIC: Sale of Richmond Property Gets Court Approval
TEXAS RANGERS: Disclosure Statement Hearing Set for June 15
TITLEMAX FINANCE: S&P Assigns 'B+' Counterparty Credit Rating
TRENT HOLDINGS: Case Summary & 9 Largest Unsecured Creditors
TRIBUNE CO: U.S. Trustee Objects to Latest Bonus Plan
TRONOX INC: Amends Lawsuit Against Kerr-McGee
TRONOX INC: Court Denies RTIH Plea to Amend Complaint
UAL CORP: Continental Pilots Want Equity in Combined Company
UAL CORP: Hires Bain & Co. to Advise on Continental Merger
UNIGENE LABORATORIES: Names Ashleigh Palmer as New CEO
UNITED AIR LINES: Bank Debt Trades at 13% Off in Secondary Market
UNIVAR NV: Bank Debt Trades at 5% Off in Secondary Market
UNIVAR NV: Bank Debt Trades at 5% Off in Secondary Market
US AIRWAYS: Gets More Time With Delta to Consider Slot Swap
US AIRWAYS: Won't Provide Home Loss Relocation Benefits
USPF HOLDINGS: S&P Withdraws 'BB+' Rating on $300 Mil. Facility
VICTOR SANCHEZ: Case Summary & 20 Largest Unsecured Creditors
VISTEON CORP: Trade Claimants Step Up Fight Against Reorganization
VISTEON CORP: Claim Transfers for May Aggregate $12.1 Million
VISTEON CORP: D. Kempner Discloses 8.86% Equity Stake
VISTEON CORP: Wants E&Y Work to Include Valuation Services
VOUGHT AIRCRAFT: Earns $26.8 Million in Q1 2010
WASHINGTON FIRST: Closed; East West Bank Assumes All Deposits
WESTCLIFF MEDICAL: Wants June 18 Hearing on Sale of Assets
WILLIAM HAWKINS: Wife Escapes $25 Mil. Tax Debt; Husband Doesn't
WOLF CREEK: Files for Chapter 11 Bankruptcy in Utah
WORLDSPACE SATELLITE: Sr. Lenders Try to Bar Sale of Assets
XIOMARA VARELA: Voluntary Chapter 11 Case Summary
YANKEE CANDLE: Bank Debt Trades at 5% Off in Secondary Market
* Investors Ignoring Red Flags on Municipal Bonds, WSJ Says
* BOND PRICING -- For the Week From June 7 to 11, 2010
*********
1806 GREEN STREET: Voluntary Chapter 11 Case Summary
----------------------------------------------------
Debtor: 1806 Green Street Associates, L.P.
c/o Jeffrey Kurtzman, Esquire
Klehr Harrison Harvey Branzburg LLP
1835 Market Street, Suite 1400
Philadelphia, PA 19103
Bankruptcy Case No.: 10-14742
Chapter 11 Petition Date: June 8, 2010
Court: United States Bankruptcy Court
Eastern District of Pennsylvania (Philadelphia)
Judge: Magdeline D. Coleman
Debtor's Counsel: Jeffrey Kurtzman, Esq.
Klehr Harrison Harvey Branzburg LLP
1835 Market Street
Suite 1400
Philadelphia, PA 19103
Tel: (215) 569 4493
Fax: (215) 568-6603
E-mail: jkurtzma@klehr.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 Mark Levin, manager of general partner.
Debtor-affiliate that filed separate Chapter 11 petition:
Petition
Debtor Case No. Date
------ -------- ----
Drexelview Club Associates, LP 10-14735 06/08/10
5425 S.M.B.: Case Summary & 2 Largest Unsecured Creditors
---------------------------------------------------------
Debtor: 5425 S.M.B. LTD Limited Partnership
451 Constitution Avenue No. E
Camarillo, CA 93012
Bankruptcy Case No.: 10-12853
Chapter 11 Petition Date: June 8, 2010
Court: U.S. Bankruptcy Court
Central District of California (Santa Barbara)
Judge: Robin Riblet
Debtor's Counsel: Robert E. Canny, Esq.
5042 Wilshire Boulevard
Los Angeles, CA 90036
Tel: (213) 401-3996
Fax: (213) 401-3998
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 2 largest unsecured creditors
filed together with the petition is available for free
at http://bankrupt.com/misc/cacb10-12853.pdf
The petition was signed by Bahman Hariri, general partner.
ADVANCED ENVIRONMENTAL: Posts $397,000 Net Loss for Q1 2010
-----------------------------------------------------------
Advanced Environmental Recycling Technologies, Inc., filed its
quarterly report on Form 10-Q, reporting a net loss of $397,000 on
$16,391,000 of revenue for the three months ended March 31, 2010,
compared with a net loss of $1,629,000 on $16,646,000 of revenue
for the same period ended March 31, 2009.
The Company's balance sheet as of March 31, 2010, showed
$56.5 million in assets and $65.8 million of liabilities, for a
stockholders' deficit of $9.3 million.
As reported in the Troubled Company Reporter on April 1, 2010,
HoganTaylor LLP, in Fayetteville, Ark., expressed substantial
doubt about the Company's ability to continue as a going concern
after auditing the Company's financial statements for the year
ended December 31, 2009. The independent auditors noted that of
the Company's recurring losses from operations, stockholders'
deficit, and inability to generate sufficient cash flow to meet
its financial obligations.
At March 31, 2010, the Company had a working capital deficit of
$23.5 million and a stockholders' deficit of $9.3 million.
A full-text copy of the quarterly report is available for free at:
http://researcharchives.com/t/s?64af
Springdale, Ark.-based Advanced Environmental Recycling
Technologies, Inc. (OTC BB: AERT) -- http://www.aertinc.com/--
develops and commercializes technologies to recycle waste
polyethylene plastics and develops, manufactures, and markets
value added, green building compounds.
AGE REFINING: Court to Consider Appointment of Trustee on June 23
-----------------------------------------------------------------
The U.S. Bankruptcy Court for the Western District of Texas will
consider at a hearing on June 23, 2010, at 10:00 a.m., the motion
to appoint a Chapter 11 trustee in the Chapter 11 case of Age
Refining, Inc. The hearing will be held at the San Antonio
Courtroom 1, Hipolito F. Garcia Federal Buildingg & Courthouse,
615 E. Houston St., San Antonio, Texas.
Creditors, Chase Capital Corporation, JPMorgan Chase Bank, N.A.,
and the Official Committee of Unsecured Creditors sought for the
appointment of a Chapter 11 trustee in the Debtor's case.
As reported in the Troubled Company Reporter on May 31, 2010,
Bill Rochelle at Bloomberg News reported that the Committee and
the lender said they have "lost faith in the ability of the
debtor's management." They argue that Glen Gonzalez, the
Company's controlling shareholder and chief executive, "does
little, if anything, to add value." They say there are grounds
for having a trustee given the amount of the bank debt and
defaults on loans JPMorgan supplied to finance the Chapter 11
effort.
Age Refining, Inc., based in San Antonio, Texas, manufactures,
refines and markets jet fuels, diesel products, solvents and other
highly specialized fuels. The Company's clients cover a variety
of sectors, including commercial, local municipalities and the
federal government. Founded in 1991 by Al Gonzalez, AGE is a
family owned and operated business in the heart of the San Antonio
community. Starting on a shoe-string budget and a bushel of
determination, AGE is proud to have posted over 22% growth per
year since 1991.
The Company filed for Chapter 11 bankruptcy protection on
February 8, 2010 (Bankr. W.D. Texas Case No. 10-50501). The
Company listed $10,000,001 to $50,000,000 in assets and
$100,000,001 to $500,000,000 in liabilities.
ALFRED DOLCE: Case Summary & 20 Largest Unsecured Creditors
-----------------------------------------------------------
Joint Debtors: Alfred Dolce
Diana Dolce
2201 S. Ocean Drive, #2701
Hollywood, FL 33019
Bankruptcy Case No.: 10-26324
Chapter 11 Petition Date: June 10, 2010
Court: U.S. Bankruptcy Court
Southern District of Florida (Fort Lauderdale)
Judge: John K. Olson
Debtor's Counsel: Stan Riskin, Esq.
950 S Pine Island Road #A-150
Plantation, FL 33324
Tel: (954) 727-8271
Fax: (954) 727-8274
E-mail: slriskin@aol.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
According to the schedules, the Debtors say that assets total
$2,057,110 while debts total $3,176,199
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/flsb10-26324.pdf
The petition was signed by the Joint Debtors.
ALFRED VILLALOBOS: Case Summary & 20 Largest Unsecured Creditors
----------------------------------------------------------------
Debtor: Alfred J.R. Villalobos
P.O. Box 3720
Stateline, NV 89449
Bankruptcy Case No.: 10-52248
Chapter 11 Petition Date: June 9, 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: $10,000,001 to $50,000,000
Estimated Debts: $10,000,001 to $50,000,000
The petition was signed by the Debtor.
Debtor-affiliates filing separate Chapter 11 petitions:
Entity Case No. Petition Date
------ -------- -------------
Arvco Art, Inc. -- 01/09/10
Arvco Financial Ventures, LLC -- 01/09/10
Arvco Capital Research, LLC -- 01/09/10
Alfred J.R. Villalobos' List of 20 Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
------ --------------- ------------
State of California Litigation $95,000,000
c/o Edmund G. Brown Jr.
Attorney General
300 South Spring Street #1702
Los Angeles, CA 90013
Caesars Palace Goods/Services $1,390,000
Las Vegas
3570 Las Vegas Boulevard
Las Vegas, NV 89109
Harrahs Goods/Services $1,210,000
South Lake Tahoe
P.O. Box 8
Stateline, NV 89449
Harrahs Goods/Services $1,100,000
Reno
P.O. Box 10
Reno, NV 89504
Patterson, Belknap Goods/Services $825,000
1133 Avenue of the Americas
New York, NY 10036
Atlantis Hotel Goods/Services $375,000
Reno
3800 S. Virginia Street
Reno, NV 89502
Harveys Goods/Services $300,000
South Lake Tahoe
P.O. Box 128
Stateline, NV 89449
Cooley Goods/Services $250,000
4401 Eastgate Mall
San Diego, CA 92121
Peppermill Hotel Goods/Services $235,000
ElDorado Hotel Goods/Services $130,000
Pinnacle Construction Goods/Services $30,000
American Express Company Goods/Services $20,000
Apodaca and Associates Goods/Services $10,000
O'Melveny & Meyers Legal Fees $10,000
Charles Davis Goods/Services $5,000
State Farm Insurance Goods/Services $1,686
Orkin Goods/Services $1,500
ADT Security Goods/Services $1,000
KGID Goods/Services $628
David Pasternak, Receiver Receiver $1
ALTERRA CORNERS: Voluntary Chapter 11 Case Summary
--------------------------------------------------
Debtor: Alterra Corners, LLC
2053 Biscayne Blvd. #421
Miami, FL 33180
Bankruptcy Case No.: 10-26113
Chapter 11 Petition Date: June 8, 2010
Court: United States Bankruptcy Court
Western District of Tennessee (Memphis)
Judge: George W. Emerson Jr.
Debtor's Counsel: James E. Bailey, III, Esq.
Butler Snow O'Mara Stevens & Cannada PLC
6075 Poplar Avenue
Suite 500
Memphis, TN 38119
Tel: (901) 680-7200
Fax: (901) 680-7201
E-mail: jeb.bailey@butlersnow.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 Adam Singer, manager.
AMERICAN INT'L: U.S. Faces "Severe" Losses over AIG Rescue
----------------------------------------------------------
American Bankruptcy Institute reports that a watchdog panel
reviewing the bailout of American International Group Inc. said
that U.S. taxpayers "remain at risk for severe losses" and that
the government didn't act aggressively enough to protect U.S.
taxpayers during the 2008 rescue.
About American International
Based in New York, American International Group, Inc., is an
international insurance organization with operations in more than
130 countries and jurisdictions. AIG companies serve commercial,
institutional, and individual customers through one of the most
extensive worldwide property-casualty networks of any insurer. In
addition, AIG companies provide life insurance and retirement
services around the world. AIG common stock is listed on the New
York Stock Exchange, as well as the stock exchanges in Ireland and
Tokyo.
In September 2008, AIG experienced a liquidity crunch when its
credit ratings were downgraded below "AA" levels by Standard &
Poor's, Moody's Investors Service and Fitch Ratings. In September
2008, the Federal Reserve Bank created an $85 billion credit
facility to enable AIG to meet increased collateral obligations
consequent to the ratings downgrade, in exchange for the issuance
of a stock warrant to the Fed for 79.9% of the equity of AIG. The
credit facility was eventually increased to as much as
$182.5 billion.
AIG has sold a number of its subsidiaries and other assets to pay
down loans received from the U.S. government, and continues to
seek buyers of its assets.
AMR CORP: Appoints Garton as President & CEO of American Eagle
--------------------------------------------------------------
In a move that positions its regional airline for continued growth
and success, AMR Corporation (NYSE: AMR), parent company of
American Airlines and American Eagle, on June 10 named Daniel P.
Garton President and Chief Executive Officer of American Eagle,
one of the world's largest regional airlines. AMR also reiterated
its intent to evaluate the possible divestiture of American Eagle.
Mr. Garton returns to American Eagle after 12 years with American
Airlines, most recently as Executive Vice President -- Marketing
for American Airlines since 2002, a role in which he was
responsible for American's Reservations, AA.com, Flight Service,
Sales, the AAdvantage(R) travel awards program, Advertising and
Corporate Communications. Previously Mr. Garton held senior
executive positions in operations and finance and was President of
American Eagle Airlines for three years beginning in July 1995.
During Mr. Garton's tenure at American Eagle, he engineered the
airline's transition from four separate carriers to one and
introduced the regional airline to the jet age with the
acquisition of its first jet aircraft.
"The AMR Board of Directors and I clearly recognize Dan's
leadership and his many contributions to AMR," said Gerard Arpey,
AMR's Chairman and CEO. "Dan has remarkable talent and ability
that -- when coupled with his broad knowledge of the challenging
airline industry and his insight from his time as President of
American Eagle -- make him uniquely qualified to lead American
Eagle, especially as we begin a strategic evaluation of the
regional airline."
"American Eagle is a great airline with a solid collection of
assets, a strong network covering the United States, the
Caribbean, Canada and Mexico with more than 1,500 daily
departures, and a dedicated group of 12,000 talented employees,"
said Mr. Garton. "The Company has accomplished a great deal
despite facing enormous challenges over the last decade. But I
believe there is now a tremendous opportunity to begin a new
chapter in the airline's history, creating new possibilities for
our customers, partners and employees."
According to Mr. Garton, these are times of unprecedented
challenge and change in the airline industry and regional airlines
are in an excellent position to capitalize on these new market
dynamics. "When you look at the sheer scope of the regional
airline industry, carriers like American Eagle provide half the
scheduled passenger flights in the United States, which is a
pretty phenomenal contribution. Regional airlines ensure a
critical transportation link, particularly with medium and smaller
sized markets that might otherwise not have air service," he said.
While Executive Vice President-Marketing for American, Mr. Garton
played a pivotal role in driving American's marketing initiatives.
Among his many accomplishments, Mr. Garton introduced a new
booking tool on AA.com that allows travelers to search flight
options by both price and schedule and rolled out American's
Lowest Fare Guarantee on AA.com. He also is credited with
spearheading American's Customer Experience Leadership initiative
to redouble the airline's customer service efforts, including
tailoring products and services to American's premium customers.
In addition, Mr. Garton had responsibility for unveiling
American's Gogo(R) Inflight Wireless Internet service and
revolutionizing award travel by introducing the popular "One-Way
Flex Awards," giving AAdvantage members more options when
redeeming award travel.
Mr. Garton joined American in 1984 and held a variety of staff
positions in the Sales, Marketing, Finance and Airport Operations
departments at American, in addition to his three-year tenure as
President of American Eagle. Mr. Garton left AMR briefly to serve
for two years as Senior Vice President and Chief Financial Officer
of Continental Airlines before returning in 1995 to AMR to assume
the presidency of American Eagle.
Mr. Garton succeeds Peter Bowler, a 26-year Company veteran who in
May announced his retirement from the airline. Mr. Garton will
assume his new duties immediately and retain his role on AMR's
Executive Committee. In addition, Mr. Garton will continue in his
role as Executive Vice President-Marketing at American until a
successor is named.
About American Eagle
American Eagle is one of the world's largest regional airlines,
operating more than 260 regional aircraft and over 1,500 daily
flights to nearly 160 cities throughout the United States, Canada,
the Bahamas, Mexico and the Caribbean on behalf of American
Airlines. American Eagle carries in excess of 19 million customers
annually and generates approximately $2.4 billion in "onboard"
customer revenue in addition to connecting 10 million customers
and associated revenue to American Airlines flights.
About American Airlines
American Airlines, American Eagle and AmericanConnection(R) serve
250 cities in 40 countries with, on average, more than 3,400 daily
flights. The combined network fleet numbers more than 900
aircraft. American's award-winning Web site, AA.com(R), provides
users with easy access to check and book fares, plus personalized
news, information and travel offers. American Airlines is a
founding member of the oneworld(R) Alliance, which brings together
some of the best and biggest names in the airline business,
enabling them to offer their customers more services and benefits
than any airline can provide on its own. Together, its members
serve nearly 700 destinations in more than 130 countries and
territories. American Airlines, Inc. and American Eagle Airlines,
Inc. are subsidiaries of AMR Corporation.
About AMR Corporation
Headquartered in Forth Worth, Texas, AMR Corporation (NYSE:
AMR) operates with its principal subsidiary, American Airlines
Inc. -- http://www.aa.com/-- a worldwide scheduled passenger
airline. At the end of 2006, American provided scheduled jet
service to about 150 destinations throughout North America, the
Caribbean, Latin America, including Brazil, Europe and Asia.
American is also a scheduled airfreight carrier, providing
freight and mail services to shippers throughout its system.
Its wholly owned subsidiary, AMR Eagle Holding Corp., owns two
regional airlines, American Eagle Airlines Inc. and Executive
Airlines Inc., and does business as "American Eagle." American
Beacon Advisors Inc., a wholly owned subsidiary of AMR, is
responsible for the investment and oversight of assets of AMR's
U.S. employee benefit plans, as well as AMR's short-term
investments.
At March 31, 2010, the Company had total assets of $25.525 billion
against total current liabilities of $8.241 billion, long-term
debt, less current maturities of $9.861 billion, obligations under
capital leases, less current obligations of $559 million, pension
and postretirement benefits of $7.531 billion, and other
liabilities, deferred gains and deferred credits of
$3.225 billion, resulting in stockholder's deficit of
$3.892 billion.
* * *
AMR carries a 'CCC' issuer default rating from Fitch Ratings. It
has 'Caa1' corporate family and probability of default ratings
from Moody's. It has 'B-' corporate credit rating, on watch
negative, from Standard & Poor's.
AMR CORP: Appoints Garton as President & CEO of American Eagle
--------------------------------------------------------------
In a move that positions its regional airline for continued growth
and success, AMR Corporation (NYSE: AMR), parent company of
American Airlines and American Eagle, on June 10 named Daniel P.
Garton President and Chief Executive Officer of American Eagle,
one of the world's largest regional airlines. AMR also reiterated
its intent to evaluate the possible divestiture of American Eagle.
Mr. Garton returns to American Eagle after 12 years with American
Airlines, most recently as Executive Vice President -- Marketing
for American Airlines since 2002, a role in which he was
responsible for American's Reservations, AA.com, Flight Service,
Sales, the AAdvantage(R) travel awards program, Advertising and
Corporate Communications. Previously Mr. Garton held senior
executive positions in operations and finance and was President of
American Eagle Airlines for three years beginning in July 1995.
During Mr. Garton's tenure at American Eagle, he engineered the
airline's transition from four separate carriers to one and
introduced the regional airline to the jet age with the
acquisition of its first jet aircraft.
"The AMR Board of Directors and I clearly recognize Dan's
leadership and his many contributions to AMR," said Gerard Arpey,
AMR's Chairman and CEO. "Dan has remarkable talent and ability
that -- when coupled with his broad knowledge of the challenging
airline industry and his insight from his time as President of
American Eagle -- make him uniquely qualified to lead American
Eagle, especially as we begin a strategic evaluation of the
regional airline."
"American Eagle is a great airline with a solid collection of
assets, a strong network covering the United States, the
Caribbean, Canada and Mexico with more than 1,500 daily
departures, and a dedicated group of 12,000 talented employees,"
said Mr. Garton. "The Company has accomplished a great deal
despite facing enormous challenges over the last decade. But I
believe there is now a tremendous opportunity to begin a new
chapter in the airline's history, creating new possibilities for
our customers, partners and employees."
According to Mr. Garton, these are times of unprecedented
challenge and change in the airline industry and regional airlines
are in an excellent position to capitalize on these new market
dynamics. "When you look at the sheer scope of the regional
airline industry, carriers like American Eagle provide half the
scheduled passenger flights in the United States, which is a
pretty phenomenal contribution. Regional airlines ensure a
critical transportation link, particularly with medium and smaller
sized markets that might otherwise not have air service," he said.
While Executive Vice President-Marketing for American, Mr. Garton
played a pivotal role in driving American's marketing initiatives.
Among his many accomplishments, Mr. Garton introduced a new
booking tool on AA.com that allows travelers to search flight
options by both price and schedule and rolled out American's
Lowest Fare Guarantee on AA.com. He also is credited with
spearheading American's Customer Experience Leadership initiative
to redouble the airline's customer service efforts, including
tailoring products and services to American's premium customers.
In addition, Mr. Garton had responsibility for unveiling
American's Gogo(R) Inflight Wireless Internet service and
revolutionizing award travel by introducing the popular "One-Way
Flex Awards," giving AAdvantage members more options when
redeeming award travel.
Mr. Garton joined American in 1984 and held a variety of staff
positions in the Sales, Marketing, Finance and Airport Operations
departments at American, in addition to his three-year tenure as
President of American Eagle. Mr. Garton left AMR briefly to serve
for two years as Senior Vice President and Chief Financial Officer
of Continental Airlines before returning in 1995 to AMR to assume
the presidency of American Eagle.
Mr. Garton succeeds Peter Bowler, a 26-year Company veteran who in
May announced his retirement from the airline. Mr. Garton will
assume his new duties immediately and retain his role on AMR's
Executive Committee. In addition, Mr. Garton will continue in his
role as Executive Vice President-Marketing at American until a
successor is named.
About American Eagle
American Eagle is one of the world's largest regional airlines,
operating more than 260 regional aircraft and over 1,500 daily
flights to nearly 160 cities throughout the United States, Canada,
the Bahamas, Mexico and the Caribbean on behalf of American
Airlines. American Eagle carries in excess of 19 million customers
annually and generates approximately $2.4 billion in "onboard"
customer revenue in addition to connecting 10 million customers
and associated revenue to American Airlines flights.
About American Airlines
American Airlines, American Eagle and AmericanConnection(R) serve
250 cities in 40 countries with, on average, more than 3,400 daily
flights. The combined network fleet numbers more than 900
aircraft. American's award-winning Web site, AA.com(R), provides
users with easy access to check and book fares, plus personalized
news, information and travel offers. American Airlines is a
founding member of the oneworld(R) Alliance, which brings together
some of the best and biggest names in the airline business,
enabling them to offer their customers more services and benefits
than any airline can provide on its own. Together, its members
serve nearly 700 destinations in more than 130 countries and
territories. American Airlines, Inc. and American Eagle Airlines,
Inc. are subsidiaries of AMR Corporation.
About AMR Corporation
Headquartered in Forth Worth, Texas, AMR Corporation (NYSE:
AMR) operates with its principal subsidiary, American Airlines
Inc. -- http://www.aa.com/-- a worldwide scheduled passenger
airline. At the end of 2006, American provided scheduled jet
service to about 150 destinations throughout North America, the
Caribbean, Latin America, including Brazil, Europe and Asia.
American is also a scheduled airfreight carrier, providing
freight and mail services to shippers throughout its system.
Its wholly owned subsidiary, AMR Eagle Holding Corp., owns two
regional airlines, American Eagle Airlines Inc. and Executive
Airlines Inc., and does business as "American Eagle." American
Beacon Advisors Inc., a wholly owned subsidiary of AMR, is
responsible for the investment and oversight of assets of AMR's
U.S. employee benefit plans, as well as AMR's short-term
investments.
At March 31, 2010, the Company had total assets of $25.525 billion
against total current liabilities of $8.241 billion, long-term
debt, less current maturities of $9.861 billion, obligations under
capital leases, less current obligations of $559 million, pension
and postretirement benefits of $7.531 billion, and other
liabilities, deferred gains and deferred credits of
$3.225 billion, resulting in stockholder's deficit of
$3.892 billion.
* * *
AMR carries a 'CCC' issuer default rating from Fitch Ratings. It
has 'Caa1' corporate family and probability of default ratings
from Moody's. It has 'B-' corporate credit rating, on watch
negative, from Standard & Poor's.
ARVINMERITOR INC: S&P Raises Corporate Credit Rating to 'B-'
------------------------------------------------------------
Standard & Poor's Ratings Services said it has raised its
corporate credit rating on ArvinMeritor Inc. to 'B-' from 'CCC+'.
The outlook is stable.
At the same time, S&P also raised its issue-level ratings on the
company's senior secured and unsecured debt.
"The upgrade reflects S&P's opinion that the North American
commercial-vehicle market should show higher sales and
profitability in 2010," said Standard & Poor's credit analyst
Lawrence Orlowski. Moreover, the company's liquidity continues to
improve, and S&P expects the company to complete the divestiture
of its remaining light-vehicle systems businesses in 2010.
North American commercial-vehicle sales fell almost 50% in 2009
from 2008 levels, but S&P believes demand is improving, as
demonstrated by better sales than S&P expected in the company's
fiscal second quarter. S&P also expects U.S. freight tonnage to
increase by more than 4% year over year. European production fell
56% year over year, and S&P expects commercial-truck sales growth
in this region to be flat in 2010. Still, S&P believes the
strength of recovery remains subject to the uncertain
sustainability of economic recovery in many markets.
Nevertheless, the company's restructuring effort in 2009 laid the
foundation for greater profitability, and S&P sees EBITDA rising
through 2010 and 2011 as truck sales volumes begin to move off
historically low demand.
The ratings on ArvinMeritor reflect the company's highly leveraged
financial risk profile and vulnerable business risk profile. Weak
profitability has kept cash generation low, given the cyclical and
competitive pricing pressures of the capital-intensive commercial-
vehicle industry. S&P expects credit measures to improve in 2010,
reflecting higher truck demand. Therefore, for fiscal 2010, S&P
assumes an adjusted debt-to-EBITDA ratio of about 7.0x and EBITDA
interest coverage of 2.5x. S&P believes liquidity is adequate for
near-term needs.
The outlook is stable. S&P believes commercial-vehicle sales in
North America are recovering, leading to higher profitability and
liquidity. S&P could raise the ratings if truck demand continues
to recover around the world and the company completes an LVS sale
without using significant liquidity. S&P could also raise the
ratings if S&P believed the company could continue to expand
EBITDA margins and bring leverage below 5.0x and consistently
generate positive free cash flow on a sustained basis.
S&P could lower its ratings if commercial-truck sales fail to
recover, or if weak LVS performance prevents liquidity from
improving. S&P estimates that ArvinMeritor needs to sustain
annual EBITDA of roughly $150 million to cover interest expense
and reasonable capital spending. For instance, if revenue fell
more than 10% and gross margins moved below 9% on a sustained
basis, S&P estimates that the company would fail to meet minimum
cash requirements.
ASARCO LLC: Fails to Nix $7M in DOJ, State Ch. 11 Bills
-------------------------------------------------------
Bankruptcy Law360 reports that a federal judge has refused to hand
either side an early win as Asarco LLC wrestles with federal and
state agencies over $7 million in attorneys' fees racked up during
the mining giant's sprawling and ultimately successful
reorganization.
About Asarco LLC
Based in Tucson, Arizona, ASARCO LLC -- http://www.asarco.com/--
is an integrated copper mining, smelting and refining company.
Grupo Mexico S.A. de C.V. is ASARCO's ultimate parent.
ASARCO LLC filed for Chapter 11 protection on August 9, 2005
(Bankr. S.D. Tex. Case No. 05-21207). Attorneys at Baker Botts
L.L.P., and Jordan, Hyden, Womble & Culbreth, P.C., represented
the Debtor in its restructuring efforts.
On December 9, 2009, Grupo Mexico, S.A.B., consummated the Chapter
11 plan that it sponsored for Asarco LLC. The Plan, which was
confirmed both by the bankruptcy and district courts, reintegrated
Asarco LLC back to parent Grupo Mexico concluding the four-year
Chapter 11 proceeding.
Bankruptcy Creditors' Service, Inc., publishes ASARCO Bankruptcy
News. The newsletter tracks the Chapter 11 proceeding undertaken
by ASARCO LLC and its various affiliates.
(http://bankrupt.com/newsstand/or 215/945-7000)
AUTO PROPERTIES: Voluntary Chapter 11 Case Summary
--------------------------------------------------
Debtor: Auto Properties, LLC
78 Goodman Road
Southaven, MS 38671
Bankruptcy Case No.: 10-12794
Chapter 11 Petition Date: June 8, 2010
Court: United States Bankruptcy Court
Northern District of Mississippi (Aberdeen)
Debtor's Counsel: Gwendolyn Baptist-Hewlett, Esq.
1305 Church Rd. E.
P.O. Box 312
Southaven, MS 38671
Tel: (662) 349-9179
E-mail: sd@baptistlaw.com
Scheduled Assets: $3,900,000
Scheduled Debts: $2,393,427
The Debtor did not file a list of its largest unsecured creditors
together with its petition.
The petition was signed by Henry A. Ware, general manager.
AVAYA INC: Bank Debt Trades at 15% Off in Secondary Market
----------------------------------------------------------
Participations in a syndicated loan under which Avaya, Inc., is a
borrower traded in the secondary market at 85.04 cents-on-the-
dollar during the week ended Friday, June 11, 2010, according to
data compiled by Loan Pricing Corp. and reported in The Wall
Street Journal. This represents a drop of 0.86 percentage points
from the previous week, The Journal relates. The Company pays 275
basis points above LIBOR to borrow under the facility, which
matures on Oct. 26, 2014. The bank debt is not rated by Moody's
and Standard & Poor's. The debt is one of the biggest gainers and
losers among 185 widely quoted syndicated loans with five or more
bids in secondary trading for the week ended Friday.
Avaya, Inc., based in Basking Ridge, New Jersey, is a supplier of
communications systems and software for enterprise customers.
The Troubled Company Reporter stated on Dec. 23, 2009, that
Moody's downgraded Avaya's corporate family rating to B3 from B2.
The downgrade was driven by challenges presented by the
acquisition of Nortel's enterprise assets as well as the large
amount of additional debt incurred to finance the acquisition
(around $1 billion).
BARNEYS NEW YORK: S&P Affirms 'CCC' Corporate Credit Rating
-----------------------------------------------------------
Standard & Poor's Ratings Services said that it affirmed its 'CCC'
corporate credit rating on New York-based Barneys New York Inc.
and removed the ratings from CreditWatch, where they were placed
with positive implications on April 22, 2010. At the same time,
S&P revised the recovery rating to '5' from '3' and lowered the
issue-level rating to 'CCC-' from 'CCC'. The recovery rating
revision reflects S&P's view that the company's valuation has
diminished over the past few years. The negative outlook reflects
S&P's concern that Barneys' capital structure is unsustainable,
and that some sort of restructuring is a likely outcome.
"S&P's ratings on Barneys New York reflect its weak liquidity
position, participation in the narrow luxury segment, small store
base, absence of a chief executive officer since mid-2008, highly
leveraged capital structure, and thin cash flow protection
measures," said Standard & Poor's credit analyst David Kuntz.
S&P's rating also indicates that Barneys is vulnerable to default,
especially given its view that the balance sheet likely needs to
be restructured.
BEACONLIGHT INC: Financial Problems Prompt Chapter 11 Filing
------------------------------------------------------------
Tim McLaughin at Business Journal of Boston reports that
Beaconlight Inc., which operates the Beaconlight Guest House, made
a voluntary filing under Chapter 11 to restructure its debt. The
Company said it has missed payments on a $1.6 million mortgage
held by Seamans Bank, and $485,000 worth of junior loans carrying
an annual interest rate of 16%. The Company proposes to make only
interest payments on the bank's mortgage while keeping up on
insurance premiums and real estate taxes.
BEACONLIGHT INC: Voluntary Chapter 11 Case Summary
--------------------------------------------------
Debtor: Beaconlight, Inc.
dba Beaconlight Guest House
12 Winthrop Street
Provincetown, MA 02657
Bankruptcy Case No.: 10-16331
Chapter 11 Petition Date: June 9, 2010
Court: United States Bankruptcy Court
District of Massachusetts (Boston)
Judge: William C. Hillman
Debtor's Counsel: Alex M. Rodolakis, Esq.
Gilman, McLaughlin & Hanrahan LLP
297 North Street
Hyannis, MA 02601
Tel: (508) 778-1100 Ext: 10
Fax: (508) 778-1800
E-mail: amr@gilmac.com
Estimated Assets: $100,001 to $500,000
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 Mark L. Phillips, president.
BEST CARE: Case Summary & 20 Largest Unsecured Creditors
--------------------------------------------------------
Debtor: Best Care, Inc.
888 W Ithaca Avenue
Englewood, CO 80110-3468
Bankruptcy Case No.: 10-24309
Chapter 11 Petition Date: June 9, 2010
Court: U.S. Bankruptcy Court
District of Colorado (Denver)
Judge: A. Bruce Campbell
Debtor's Counsel: Jeffrey Weinman, Esq.
E-mail: jweinman@epitrustee.com
William A. Richey, Esq.
E-mail: lkraai@weinmanpc.com
730 17th Street, Suite 240
Denver, CO 80202
Tel: (303) 572-1010
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
$372,292 while debts total $1,463,442.
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/cob10-24309.pdf
The petition was signed by Anna Marie Zarlengo, president.
Debtor-affiliate filing separate Chapter 11 petition:
Entity Case No. Petition Date
------ -------- -------------
Anna Zarlengo 10-19784 04/26/10
BIOMET INC: Bank Debt Trades at 4% Off in Secondary Market
----------------------------------------------------------
Participations in a syndicated loan under which Biomet, Inc., is a
borrower traded in the secondary market at 96.33 cents-on-the-
dollar during the week ended Friday, June 11, 2010, according to
data compiled by Loan Pricing Corp. and reported in The Wall
Street Journal. This represents a drop of 0.80 percentage points
from the previous week, The Journal relates. The Company pays 300
basis points above LIBOR to borrow under the facility. The bank
loan matures on March 25, 2015, and carries Moody's B1 rating and
Standard & Poor's BB- rating. The debt is one of the biggest
gainers and losers among 185 widely quoted syndicated loans with
five or more bids in secondary trading for the week ended Friday.
Biomet, Inc. -- http://www.biomet.com/-- based in Warsaw,
Indiana, is one of the leading manufacturers of orthopedic
implants, specializing in reconstructive devices. Through its EBI
subsidiary, the firm also sells electrical bone-growth stimulators
and external devices, which are attached to bone and protrude from
the skin. Subsidiary Biomet Microfixation markets implants and
bone substitute material for craniomaxillofacial surgery. In 2007
Biomet was acquired by a group of private equity firms for more
than $11 billion.
BLOCKBUSTER INC: In Talks for $150MM DIP Loan; NCR Tie-up Rumored
-----------------------------------------------------------------
The Wall Street Journal's Mike Spector reports that Blockbuster
Inc. is in talks for a new loan that would keep it afloat in
bankruptcy court, a fresh sign the movie-rental chain could be
forced to seek Chapter 11 protection from creditors to rework more
than $900 million in debt. According to Mr. Spector, people
familiar with the matter said Blockbuster is in discussions with
bondholders to get up to $150 million in debtor-in-possession
financing.
According to the Journal, the senior bondholders, owed about $630
million, would provide the financing to protect their original
investment should Blockbuster enter bankruptcy court.
The Journal notes the talks don't necessarily mean Blockbuster
will file for bankruptcy.
The Journal relates Blockbuster is pursuing other options.
According to the Journal, Blockbuster is talking with possible
strategic partners about a new cash infusion. The source said
under that scenario, a group of lower-ranking bondholders owed
$300 million would likely convert their debt to equity.
According to the Journal, that source also said one potential
investor could be NCR Corp., which provides the company with
Blockbuster Express-branded vending machines. The Journal says it
remained unclear what other possible investors Blockbuster had
sounded out. Blockbuster and NCR declined to comment.
The Journal also reports a person familiar with the situation said
if the company decides to file for bankruptcy, the filing would
come after Blockbuster's June 24 shareholder meeting.
Blockbuster has roughly $40 million in debt payments due July 1.
The company had about $110 million in cash and cash equivalents as
of April 4. It posted a $65.4 million loss for the first quarter.
About Blockbuster Inc.
Blockbuster Inc. is a leading global provider of rental and retail
movie and game entertainment. The company provides customers with
convenient access to media entertainment anywhere, any way they
want it -- whether in-store, by-mail, through vending kiosks or
digitally to their homes and mobile devices. With a highly
recognized brand and a library of more than 125,000 movie and game
titles, Blockbuster leverages its multichannel presence to serve
nearly 47 million global customers annually. The company may be
accessed worldwide at http://www.blockbuster.com/
Blockbuster Inc. filed its quarterly report on Form 10-Q, showing
a net loss of $65.4 million on $939.4 million of revenue for the
thirteen weeks ended April 4, 2010, compared with net income of
$27.7 million on $1.086 billion of revenue for the thirteen weeks
ended April 5, 2009.
The Company's balance sheet as of April 4, 2010, showed
$1.319 billion in assets and $1.693 billion of liabilities, for a
stockholders' deficit of $374.2 million.
PricewaterhouseCoopers LLP, in Dallas, expressed substantial doubt
about the Company's ability to continue as a going concern
following Blockbuster's 2009 results.
BMB MUNAI: Enters Agreement to Amend Note Redemption Terms
----------------------------------------------------------
BMB Munai, Inc., disclosed that in connection with its efforts to
restructure its U.S. $60,000,000 aggregate principal amount of
5.0% Convertible Senior Notes due 2012 issued in 2007, it has
entered into Supplemental Indenture No. 1 with The Bank of New
York Mellon as trustee for the holders of the Notes.
Pursuant to the terms of the original Indenture, the Noteholders
had the right to redeem the Notes on July 13, 2010, by delivering
notice on or prior to June 13, 2010. The parties entered into the
Supplemental Indenture that will allow additional time to
negotiate a restructuring of the Notes. The Supplemental
Indenture grants the Noteholders an additional right to require
redemption of the Notes upon two days notice any time after
June 13, 2010, but on or before September 13, 2010.
In exchange for the additional redemption right, the Noteholders
separately agreed they will not exercise any redemption right
prior to September 1, 2010, except in certain circumstances. The
Noteholders also separately agreed to waive existing defaults
under the Indenture until the earlier of September 1, 2010 or the
date they may exercise the new redemption right.
About BMB Munai
BMB Munai, Inc., focuses on oil and natural gas company
exploration and production in the Republic of Kazakhstan. The
Company holds an exploration contract that allows it to conduct
exploration drilling and oil production in the Mangistau Province
in the southwestern region of Kazakhstan. BMB's contract area
consists of the ADE Block, which includes Aksaz, Dolinnoe and Emir
oil and gas fields. Its drilling activities consist of drilling a
range of exploratory wells to delineate reservoir structures and
developmental wells, which provides revenue to the Company. As of
March 31, 2009, the Company had drilled 24 wells.
BOMBARDIER INC: Fitch Affirms 'BB+' Issuer Default Rating
---------------------------------------------------------
Fitch Ratings has affirmed the ratings for Bombardier Inc.:
-- Issuer Default Rating at 'BB+';
-- Senior unsecured revolving credit facility at 'BB+';
-- Senior unsecured debt at 'BB+';
-- Preferred stock at 'BB-'.
The Rating Outlook is Negative. As of April 30, 2010, BBD's
outstanding debt and preferred stock totaled approximately
$4.9 billion.
The ratings and Outlook incorporate Fitch's expectation that BBD's
near-term performance will continue to be affected by difficult
conditions in its aerospace business. As a result, credit metrics
may not improve during the remainder of the current year but could
eventually strengthen as demand for business jets and regional
aircraft recovers. At April 30, 2010 debt/EBITDA of 3.0 times had
increased from 2.1x as recently as FYE Jan. 31, 2009 due to a
combination of weaker operating results and new debt issued in
March 2010. The Negative Outlook also reflects concerns about
higher leverage, limited free cash flow, low margins at Bombardier
Aerospace, economic instability in Europe that represents
Bombardier Transportation's largest market, large pension
contributions, and risks related to BA's development programs for
new aircraft.
BBD has taken a number of actions to address these concerns
effectively including its careful approach to developing the
CSeries and its earlier restructuring efforts to reduce production
capacity at BA. At BA, lower employment production levels should
mitigate the decline in aircraft deliveries but margins are likely
to be low through fiscal 2011. In the near term, BBD is focused
on maintaining its liquidity while it copes with the weak business
jet market and uses cash to develop new aircraft. Longer term,
the company has been clear about its intention to build a stronger
capital structure and reduce leverage which will be important to
reducing its cost of funds and improving its financial and
strategic flexibility. The ratings are supported by the company's
business diversification, leading market positions and a
substantial backlog at BT that helps to buffer volatility in
orders. In addition, BBD maintains a high level of liquidity and
has a conservative debt structure in which there are only modest
scheduled debt repayments prior to calendar 2013.
Free cash flow after dividends in fiscal 2011 should be slightly
positive including break-even cash flow at BA. By comparison,
BBD's free cash flow was negative in fiscal 2010, at $431 million,
and could continue to be negative through the first half of fiscal
2011 before improving. Negative free cash flow expected in the
first part of fiscal 2011 reflects the slowing of deliveries and
the timing of customer advances and inventory build on new orders
including a buildup of CRJ1000 NextGen aircraft at BA. First
delivery of the CRJ1000 NextGen aircraft was delayed into the
second half of fiscal 2011 due to a problem with rudder controls
which prompted the suspension of flight testing. Longer term,
free cash flow at BA will be affected during the next several
years by higher capital expenditures to support ongoing new
product development for key programs, especially the CSeries and
Learjet 85 aircraft. Expenditures for other programs are being
closely controlled while BA addresses the slump in its aerospace
business. As a result, BA's free cash flow is expected to be near
break-even in 2011.
Free cash flow should be positive at BT, reflecting continuing
demand in its global rail markets and benefits from stimulus
spending. A need for infrastructure in international markets
should support BT's long-term growth. There are some concerns
about the stability of BT's markets in Europe where sovereign debt
risks and budget pressures at BT's governmental customers could
disrupt near-term infrastructure investment. Expected cash
deployment by BBD in fiscal 2011 includes annual dividends of
approximately $180 million and pension contributions that BBD
estimates at $336 million.
BA anticipates that business jet deliveries in fiscal 2011 will
decline 15% and commercial aircraft deliveries will decline 20%.
These figures are near the low end of industry ranges expected by
Fitch in 2010 including declines of 5%-10% in business jet
deliveries, at least 15% in regional jet deliveries (excluding new
entrants), and around 5% for turboprops. Deliveries of light
business jets are expected to be weaker than larger business jets.
BA's deliveries could be especially weak during the first half of
fiscal 2011, reflecting significant net cancellations for business
jets in the first half of 2010. The production backlog for BA's
light business jets are lower than its other business and
commercial aircraft and could potentially require additional
production cuts depending on the future trend in net orders. Net
orders for business jets have been slightly positive on a
quarterly basis since the third quarter of 2010. Orders for
regional jets are also at low levels due to lower passenger
traffic and financial difficulties at the airlines, prompting BA
to announce production cuts in December 2009 as it had
anticipated. There are signs that the business jet market is
beginning to stabilize, including a fall-off in cancellations,
improving utilization rates and lower inventories of used jets.
BBD's aircraft inventories, including on-balance sheet inventory
and sale-leaseback facilities, have declined but remain elevated
compared to historical levels. If the pace of orders fails to
improve materially, BBD's operating results and cash flow could be
pressured and delay its return to stronger financial measures.
Other rating concerns include project risk on Transportation
contracts and the impact of currency movements on financial
results and planning. Contingent liabilities related to past
aircraft financing represents another concern as highlighted by
Mesa's bankruptcy early in 2010. BBD's direct exposure to Mesa
should be manageable, but its ultimate exposure related to credit
and residual value guarantees is uncertain. The Mesa bankruptcy
could hurt valuations throughout the regional aircraft industry
depending on how the bankruptcy develops. BBD's contingent risks
are mitigated by the timing of the liabilities which are spread
out over time.
The ratings could be downgraded if demand for business jets
remains depressed for a sustained period, if BBD's transportation
markets were to weaken materially, or if cash deployment for
capital expenditures or other uses results in higher leverage or a
reduction in BBD's liquidity. The ratings could also be
negatively affected by challenges related to BBD's aircraft
development programs such as unexpected costs or delays, weak
orders or competitive pressure. On the other hand, the Outlook
could return to Stable if conditions in BBD's aerospace markets
stabilize and BBD is able to reduce debt and leverage.
BBD has substantial liquidity, helping to offset near-term
concerns about free cash flow. In March 2010 BBD issued
$1.5 billion of new debt used to refinance and extend maturities
on $1 billion of existing debt and increase cash balances. BBD's
liquidity at April 30, 2009, included approximately $3.5 billion
of unrestricted cash balances and availability under a $500
million bank revolver that matures in September 2011. Cash
balances do not include $781 million of restricted cash related to
its letter of credit (LOC) facilities. Restricted cash balances
are not available for liquidity purposes or for the benefit of
unsecured bondholders. BBD's liquidity benefits from a debt
structure in which there are few maturities until 2012. Off-
balance sheet debt includes sale-leaseback facilities used to help
fund BBD's inventory of used business jets. BBD's bank facilities
contain financial covenants including various leverage and
liquidity requirements for both BA and BT. The covenants remain
in compliance but could potentially become a concern if BBD's
results are weaker than expected or if liquidity is reduced by
unusually large expenditures for uses such as aircraft development
programs, working capital or pension contributions.
BROOKSTONE CO: S&P Lowers Credit Rating to 'CC'; PR Corrected
-------------------------------------------------------------
Standard & Poor's Ratings Services misstated in an article
published earlier the cash amount in the second paragraph, at the
fifth line. The correct amount is $800.
S&P lowered its unsolicited corporate credit rating on Merrimack,
N.H.-based Brookstone Co. Inc. to 'CC' from 'CCC'. At the same
time, S&P lowered its unsolicited issue-level rating on Brookstone
Co. Inc.'s outstanding $170 million of 12% second-lien notes due
2012 to 'C' from 'CCC-'. The recovery rating on this debt remains
'5'. The outlook is negative.
The downgrades follow Brookstone's announcement that its wholly
owned subsidiary, Brookstone Co. Inc., has commenced an offer to
acquire its outstanding 12% second-lien notes due 2012 held by
investors. The tendering holder can elect to either receive
$800 million principal amount of new 12% second-lien notes due
2017 or $800 in cash for each $1,000 principal amount of 2012
notes. Brookstone will pay accrued interest on issued exchange
notes from April 16 (the last interest payment date) and will pay
80% of accrued interest from that date for 2012 notes tendered for
cash. The deal is conditioned on participation by two-thirds in
principal amount of the outstanding issue. The deadline to
exchange is June 18, 2010.
The company's stockholders are contributing cash to buyback the
2012 notes, which is expected to be $13.33-$20 million range. If
the total cash tenders exceed this amount, the cash portion will
be prorated with the balance distributed in new exchange notes. A
tendered 2012 note holder is expected to also deliver a consent to
release the collateral securing the notes, which will then back
the new 2017 notes, and eliminate covenants and some events of
default. Approval of the release of the collateral requires
consent of two-thirds by principal amount of the existing issue.
If Brookstone were to complete an exchange offer, S&P would lower
the corporate credit rating to 'SD' (selective default) and lower
the existing exchanged issue-level ratings to 'D'. S&P would then
assign a new corporate credit rating to Brookstone based on its
assessment of its new capital structure and liquidity profile,
while taking into account its business prospects and other
relevant rating considerations.
BROWN PUBLISHING: Court Considers Further Use of Cash on June 17
----------------------------------------------------------------
The Hon. Dorothy T. Eisenberg of the U.S. Bankruptcy Court for the
Eastern District of New York will consider at a hearing on
June 17, 2010, at 11:00 a.m. E.D.T., the request of The Brown
Publishing Company, et al., to secure postpetition financing. The
hearing will be held at 290 Federal Plaza, Courtroom 760, Central
Islip, New York. Objections were due on June 11, 2010.
The Debtors are authorized, on an interim basis, to obtain
postpetition financing and grant security interests and
superpriority administrative expense status from PNC Bank, N.A.,
as agent for itself and certain other lenders.
The termination date of the loan was extended until June 17.
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.
CABLEVISION SYSTEMS: Has Deal to Buy Bresnan for $1.36 Billion
--------------------------------------------------------------
The Wall Street Journal's Anupreeta Das reports that people
familiar with the matter said Cablevision Systems Corp. is
expected to announce as early as Monday the purchase of Bresnan
Communications for $1.36 billion.
The Journal notes the deal marks a shift in strategy for
Cablevision, the country's fifth-largest cable operator, which has
mainly focused on its home market in the New York metro area.
According to the Journal, Bresnan's addition will push Cablevision
into the Western U.S. market, which is attractive because
competition for communications services is less intense. Bresnan,
which is majority-owned by private-equity firm Providence Equity
Partners, provides high-speed Internet and other communications
services to about 320,000 subscribers in Colorado, Wyoming, Utah
and Montana.
The company is also expected to announce a share buyback as part
of the deal, say people familiar with the matter, according to the
Journal.
Sources told the Journal Cablevision outbid cable operators
Charter Communications Inc. and Suddenlink Communications; Liberty
Media Corp Chairman John Malone; as well as private-equity firms
including TPG Capital and BC Partners to buy Bresnan. Sources
said the auction initially drew about 20 interested parties.
The Journal says UBS AG and Credit Suisse Group advised the
sellers; and Citigroup Inc. and Bank of America Merrill Lynch
advised Cablevision and are arranging financing for the purchase.
The Journal recalls Providence bought Bresnan for $525 million in
2003 and began exploring a potential sale of the company in March
this year. Comcast and private-equity firm Quadrangle Group LLC
also own stakes in Bresnan.
About Cablevision Systems
Headquartered in Bethpage, New York, Cablevision Systems Corp. is
predominantly a domestic cable TV multiple system operator serving
approximately 3.1 million subscribers in and around the New York
metropolitan area. Among other entertainment-and media-related
business ventures, the company also owns and distributes
programming to cable television and direct broadcast satellite
providers throughout the United States through its Rainbow
National Services subsidiary.
Cablevision Systems reported net earnings of $285.3 million on
revenue of $7.77 billion for the year ended December 31, 2009,
compared with a net loss of $236.17 million on revenue of
$7.23 billion for 2008. Cablevision reported $9.32 billion in
total assets and $14.47 billion in total liabilities, resulting to
a $5.16 billion stockholders' deficit as of December 31, 2009.
* * *
Cablevision carries Standard & Poor's 'BB' corporate credit rating
and Moody's "Ba2" Corporate Family and Probability of Default
Ratings.
CAPMARK FIN'L: Has Access to Cash Collateral Until January 2011
---------------------------------------------------------------
Capmark Financial Group, Inc., and its debtor affiliates have once
again entered into a stipulation with Morgan Stanley & Co.
Incorporated increasing the amount of cash collateral the Debtors
are permitted to use to a maximum of $35 million through
January 31, 2011.
The U.S. Bankruptcy Court for the District of Delaware entered a
final order on March 19, 2010, approving a stipulation authorizing
the Debtors to use up to $10 million of cash collateral. The
Original Order also provided Morgan Stanley adequate protection
pursuant to Section 363(e) of the Bankruptcy Code for claims
arising from the use of Cash Collateral, including, without
limitation, the creation and perfection of the pledge of
the loan receivables relating to each Property Saving Loan and
True-Up Excess Contribution Payment funded pursuant to the terms
of the Stipulation.
On May 4, 2010, the Court approved an amended deal increasing the
amount of Cash Collateral the Debtors are permitted to use to
$20 million. Pursuant to the Supplemental Order, the Debtors'
authority to use Cash Collateral will terminate on June 30, 2010.
The Debtors and Morgan Stanley anticipate that further Property
Saving Loans True-Up Excess Contribution Payments may become due
and owing after June 30, 2010.
The Debtors maintain that if these further loans and payments
become due in the second half of 2010, the amounts to be funded
pursuant to the Stipulation could potentially exceed the current
$20 million cap on the aggregate basis, when combined with the
amounts of Cash Collateral already expected to be utilized
through June 30, 2010.
Accordingly, the Debtors ask the Court to approve the Motion.
A hearing will be held on June 29, 2010, to consider the Debtors'
request. Objection deadline is June 22.
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 FIN'L: Wins Nod for Deloitte as Tax Advisor
---------------------------------------------------
Capmark Financial Inc. and its units received the Court's
authority to employ Deloitte Tax LLP as their tax advisor, nunc
pro tunc to April 17, 2010. The Debtors have selected Deloitte
Tax because of the firm's diverse experience and extensive
knowledge in the fields of taxation for large sophisticated
companies both in Chapter 11 as well as outside of Chapter 11.
No objections were filed to the application.
As the Debtors' tax advisors, Deloitte Tax will, among others,
provide:
(a) analysis of federal and state net operating loss
preservation, including periodic updates to prior Section
382 analyses;
(b) tax compliance services as set forth in the Work Order
dated May 10, 2010;
(c) federal, state, and employee benefit tax compliance
services;
(d) federal, state, and international tax advisory services,
including advice related to accounting methods, periods,
elections or credits;
(e) federal and state tax controversy services, including
assistance in responding to audits performed by federal
and state administrations;
(f) intercompany transfer pricing analyses, including periodic
updates to prior transfer pricing studies; and
(g) assistance with the preparation of specified tax forms for
certain of the Debtors' employee benefit plans.
The Debtors will pay Deloitte Tax based on the firm's current
hourly rates:
Classification Hourly Rate
-------------- -----------
Partner/Principal/Director $550
Senior Manager $450
Manager $350
Senior $250
Staff $190
Under the February Engagement Letter, Deloitte Tax intends to
charge $3,500 for the preparation of the specified tax forms plus
expenses and technology costs.
The Debtors will also reimburse Deloitte Tax for its expenses,
including travel, report production, delivery services, and other
expenses incurred in providing professional services.
Jeffrey Ausnehmer, partner of Deloitte Tax LLP, assures the Court
that his firm is a "disinterested person" as that term is defined
in Section 101(14) of the Bankruptcy Code.
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)
CARDIMA INC: Posts $3.5 Million Net Loss in Q1 2010
---------------------------------------------------
Cardima, Inc., filed its quarterly report on Form 10-Q, reporting
a net loss of $3,470,000 on $439,000 for the three months ended
March 31, 2010, compared with a net loss of $4,305,000 on $361,000
of revenue for the same period ended March 31, 2009.
The Company's balance sheet as of March 31, 2010, showed
$8,552,000 in assets, $1,698,000 of liabilities, and $6,854,000 of
stockholders' equity.
The Company does not currently have any external financing in
place to support operating cash flow requirements.
A full-text copy of the quarterly report is available for free at:
http://researcharchives.com/t/s?64b1
As reported in the Troubled Company Reporter on April 1, 2010,
PMB Helin Donovan, in San Francisco, Calif., expressed substantial
doubt about the Company's ability to continue as a going concern
after auditing the Company's financial statements for the year
ended December 31, 2009. The independent auditors noted that of
the Company's recurring losses from operations and net capital
deficiency.
Fremont, Calif.-based Cardima, Inc. (OTC BB: CADMD)
-- http://Cardima.com/-- is a medical device companyf ocused on
the diagnosis and treatment of cardiac arrhythmias.
CARL LYDAY: Case Summary & 20 Largest Unsecured Creditors
---------------------------------------------------------
Joint Debtors: Carl Vieman Lyday
dba Dazbog Coffee Franchise Store # 13
Front Range Properties
fdba Dazbog Coffee Franchise Store # 16
Susan Jane Lyday
dba Dazbog Coffee Franchise Store # 13
fdba Dazbog Coffee Franchise Store # 16
153 Equinox Drive
Castle Rock, CO 80108
Bankruptcy Case No.: 10-24350
Chapter 11 Petition Date: June 9, 2010
Court: U.S. Bankruptcy Court
District of Colorado (Denver)
Judge: Elizabeth E. Brown
Debtor's Counsel: Stephen C. Nicholls, Esq.
1850 Race Street
Denver, CO 80206
Tel: (303) 329-9700
E-mail: steve.nicholls@nichollslaw.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/cob10-24350.pdf
The petition was signed by the Joint Debtors.
CBGB HOLDINGS: Files for Chapter 11 in Manhattan
------------------------------------------------
Jacqueline Palank at Dow Jones Daily Bankruptcy Review reports
that CBGB Holdings LLC -- which two years ago purchased the name
and copyrights associated with Manhattan's legendary punk-rock
club CBGB -- filed for Chapter 11 bankruptcy protection June 11,
2010 (Bankr. S.D.N.Y. Case No. 10-13130). The case is assigned to
Judge Stuart M. Bernstein. The Debtor listed assets and debts
each in the range of $1 million to $10 million in its petition.
Ms. Palank says CBGB Holdings' founding partners, James Blueweiss
and Robert Williams, as well as the company's bankruptcy attorney,
weren't immediately available for comment. She also relates the
company didn't say in court papers why it filed for bankruptcy
protection.
Ms. Palank recalls the Journal has reported that Blueweiss and
Williams teamed up in 2008 to pay $3.5 million for all of the
club's intellectual property. Hilly Kristal opened the club in
1973. The club shuttered in 2006.
Ms. Palank says CBGB Holdings donated club memorabilia to the Rock
and Roll Hall of Fame Annex NYC and took steps to revive the brand
including signing a distribution deal to sell T-shirts featuring
the club's well-known logo.
CHURCH & DWIGHT: Moody's Reviews 'Ba1' Rating for Possible Upgrade
------------------------------------------------------------------
Moody's Investors Service placed Church & Dwight Company, Inc.'s
Bal rating under review for possible upgrade. The action is based
on the company's demonstrated and sustained operational
improvements over the past several years despite a weak economy,
its strong credit profile, proven ability to integrate
acquisitions as well as its conservative financial policies.
The ratings review will focus on 1) management's strategy
regarding growth both organically and through acquisitions, and 2)
the company's debt capital structure and maturity profile given
all its debt matures in 2012.
Church & Dwight's overall profitability has significantly improved
from its cost savings initiatives and a recently completed liquid
laundry detergent plant in York, Pennsylvania that is driving
gross margin expansion. The gross margin improvement has fueled
increased marketing spend in the past, although industry
competitive pressures around pricing should offset some of the
benefits. On the heels of continued operation improvements, the
company's credit metrics have remained very strong supported by
good free cash flow generation and a commitment to reducing debt.
The company's organic sales growth for the full year 2009 was
about 5% and is expected to be 4-5% in 2010, supported by its
large focus in value oriented products, that have strived within
the still weak consumer environment. Continuous investment in its
portfolio of premium brands have supported margin improvements.
As of the twelve months ended March 31, 2010, Debt to EBITDA was
1.6 times, down from 2.2 times the same period the previous year.
Given Church & Dwight's low leverage, large cash balance of $450
million and expectation of good free cash flow in 2010, the
company's financial flexibility is much improved, strongly
positioning it within the current rating category.
These ratings were placed under review for upgrade:
Church & Dwight Company, Inc.
* Corporate family rating at Ba1;
* Probability-of-default rating to Ba1;
* $100 million senior secured revolving credit facility currently
rated Baa3 (LGD2, 29%);
* $490 million senior secured term loan facility currently rated
Baa3 (LGD2, 29%);
* $250 million senior subordinated notes currently rated Ba2 (LGD5
87%);
* LGD rates not under review.
Moody's last rating action was on May 5, 2008 when Moody's
affirmed the CFR at Ba1, the senior secured term loan facility
rating at Baa3, and assigned a Baa3 on the company's $100 million
revolving credit facility following the acquisition of the assets
of Del Pharmaceuticals (primarily Orajel brand of products).
Church & Dwight Company, Inc., based in Princeton, New Jersey, is
a leading marketer and manufacturer of a broad portfolio of
household and personal care consumer products, historically under
the Arm and Hammer brand name, and is also the world's leading
sodium bicarbonate producer. The company's brands also include
OxiClean, Orajel, Trojan, Nair, and Xtra. The company has grown
significantly via acquisitions. Total revenues for the last
twelve months ended March 31, 2010, were approximately
$2.6 billion.
CIMINO BROKERAGE: Allocates $100,000 for Unsecured Creditors
------------------------------------------------------------
Cimino Brokerage Company filed with the U.S. Bankruptcy Court for
the Northern District of California a Disclosure Statement
explaining the proposed Plan of Reorganization as of June 9, 2010.
The Debtors will begin soliciting votes on the Plan following
approval of the adequacy of the information in the Disclosure
Statement.
According to the amended Disclosure Statement, the Plan provides
for the continuation of the Debtor's business operations for the
benefit of all creditors. The Debtor proposes to make payments to
creditors over a period of 5 years from the effective date from
business operations.
Additionally, a new value contribution in the amount of $350,000
will be provided to the Debtor by an entity to be formed by one or
more of the Debtor's general partners (Armand Cimino, Stephanie
Cimino and Vince Cimino.) $250,000 of the new value contribution
will be allocated to administrative expense claims, with $100,000
to be available as an initial payment to general unsecured
creditors.
The status of the Reorganized Debtor entity will also be changed
from a general partnership to a limited liability company, with
100% equity interest in the Reorganized Debtor to be issued to the
Contributor.
A full-text copy of the amended Disclosure Statement is available
for free at http://bankrupt.com/misc/CIMINOBrokerage_DS.pdf
The Debtor proposes a hearing on approval of Disclosure Statement
on June 16, 2010, at 2:30 p.m. at Courtroom 3035, 280 South First
St., San Jose, California.
The Debtor is represented by:
David B. Golubchik, Esq.
Todd M. Arnold, Esq.
Levene, Neale, Bender, Rankin & Brill L.L.P.
10250 Constellation Blvd., Suite 1700
Los Angeles, CA 90067
Tel: (310) 229-1234
Fax: (310) 229-1244
About Cimino Brokerage
Salinas, California-based Cimino Brokerage Company, a California
general partnership -- aka Cimino Brothers Produce and dba Cimino
Brothers Produce -- was founded over 15 years ago by the Cimino
family, which has been in the agricultural business since 1895.
The Debtor is currently owned 50% by Vincent Cimino, 25% by Armand
Cimino and 25% by Stephanie Cimino. The Company is a year-round
grower, shipper and distributor of fresh vegetables and
fruits, primarily broccoli. The Company, through its Mexican
wholly-owned subsidiary (Cimino Brothers Produce Mexico S.A. de
C.V. is the creator of the Asian Cut Crown broccoli category, and
has developed the largest national network of Asian foodservice
distributors and customers in the nation. The Company's
administrative operations are carried out from its facilities in
Salinas, California. The Company's primary cooling facilities in
the United States are located in Laredo, Texas.
The Company filed for Chapter 11 bankruptcy protection on
November 24, 2009 (Bankr. N.D. Calif. Case No. 09-60291). The
Company listed $10,000,001 to $50,000,000 in assets and
$10,000,001 to $50,000,000 in liabilities.
CINCINNATI BELL: Inks 6th Amended Receivables Agreement with PNC
----------------------------------------------------------------
Cincinnati Bell Inc. said its wholly-owned receivables subsidiary
Cincinnati Bell Funding LLC and PNC Bank, National Association
entered into the Sixth Amendment to Receivables Purchase Agreement
dated June 7, 2010.
The Sixth Amendment amends the Company's Receivables Purchase
Agreement originally entered into on March 23, 2007, among the
Company, CB Funding, the various Purchaser Groups identified
therein and PNC Bank, National Association, as amended, by
reducing the size of the borrowing facility to $100,000,000 and
adding Cincinnati Bell Any Distance of Virginia LLC as an
Originator.
On June 7, 2010, the Company, CB Funding, and CBADVA entered into
the Joinder and Third Amendment to Purchase and Sale Agreement
dated as of June 7, 2010 among CBADVA as a New Originator, the
Originators identified therein, CB Funding, and the Company as
sole member of CB Funding and as Servicer. The Joinder Agreement
amends the Purchase and Sale Agreement dated as of March 23, 2007
among CB Funding, the Company, and the various Originators
identified therein, by adding CBADVA as an Originator to the
Purchase and Sale Agreement.
A full-text copy of the sixth amended agreement is available for
free at http://ResearchArchives.com/t/s?64b6
About Cincinnati Bell
Cincinnati Bell Inc., with headquarters in Cincinnati, Ohio,
provides telecommunications products and services to residential
and business customers in Ohio, Kentucky and Indiana. CBB
generated $1.3 Billion in revenues in 2009.
* * *
According to the Troubled Company Reporter on May 26, 2010,
Standard & Poor's Ratings Services assigned its issue-level and
recovery ratings to Cincinnati, Ohio-based Cincinnati Bell Inc.'s
proposed $970 million proposed senior secured credit facilities,
consisting of a $760 million term loan B due 2017 and a
$210 million revolving credit facility due 2014. S&P rated the
facilities 'BB' (two notches higher than S&P's 'B+' corporate
credit rating on the company) with a recovery rating of '1',
indicating S&P's expectations of very high (90% to 100%) recovery
for lenders in the event of a payment default.
Moody's Investors Service has corrected a press release on
Cincinnati Bell Inc.'s rating. Moody's substituted "B2" for "B1"
in the fifth paragraph Downgrades, fifth line "Senior Unsecured
Regular Bond/Debenture, Downgraded to B2, LGD4, 61% from Ba3,
LGD4, 53%".
CINEMARK INC: Bank Debt Trades at 2% Off in Secondary Market
------------------------------------------------------------
Participations in a syndicated loan under which Cinemark, Inc., is
a borrower traded in the secondary market at 97.88 cents-on-the-
dollar during the week ended Friday, June 11, 2010, according to
data compiled by Loan Pricing Corp. and reported in The Wall
Street Journal. This represents a drop of 0.69 percentage points
from the previous week, The Journal relates. The Company pays 325
basis points above LIBOR to borrow under the facility. The bank
loan matures on April 30, 2016, and carries Moody's Ba3 rating
while it is not rated by Standard & Poor's. The debt is one of
the biggest gainers and losers among 185 widely quoted syndicated
loans with five or more bids in secondary trading for the week
ended Friday.
As reported by the Troubled Company Reporter on April 28, 2010,
Moody's affirmed Cinemark, Inc.'s ratings, including its B1
corporate family and probability of default ratings, and SGL-1
speculative grade liquidity rating. The existing Ba3 senior
secured bank debt and B3 senior unsecured bond ratings for
Cinemark USA, Inc., were also affirmed. The rating outlook
remains positive.
As a consequence of Cinemark's gradually improving operational
performance, the company's leverage and coverage measures have
also been gradually improving. When considered in conjunction
with a solid liquidity position anchored by a substantial cash
balance that could facilitate near-term debt reduction, or
alternatively, the acquisition of additional cinema operations
that would presumably strengthen the business, Moody's continue to
maintain a positive rating outlook. This is despite limited free
cash generation, a consequence of ongoing growth initiatives and a
dividend that consumes +/- 20% of (unadjusted) EBITDA.
Cinemark Holdings, Inc., which owns Cinemark, Inc., and
(indirectly) Cinemark USA, Inc. and is headquartered in Plano,
Texas, is the United States' third largest motion picture
exhibitor with 294 theaters and 3,830 screens in 39 states, and
internationally (in 13 countries), mainly in Mexico, South and
Central America, with a further 130 theaters and 1,066 screens.
CLAIRE'S STORES: Bank Debt Trades at 17% Off in Secondary Market
----------------------------------------------------------------
Participations in a syndicated loan under which Claire's Stores,
Inc., is a borrower traded in the secondary market at 83.00 cents-
on-the-dollar during the week ended Friday, June 11, 2010,
according to data compiled by Loan Pricing Corp. and reported in
The Wall Street Journal. This represents a drop of 0.69
percentage points from the previous week, The Journal relates.
The Company pays 275 basis points above LIBOR to borrow under the
facility. The bank loan matures on May 29, 2014, and carries
Moody's Caa2 rating and Standard & Poor's B- rating. The debt is
one of the biggest gainers and losers among 185 widely quoted
syndicated loans with five or more bids in secondary trading for
the week ended Friday.
Claire's Stores, Inc., reported a net loss of $12,300,000 for the
three months ended May 1, 2010, from a net loss of $29,023,000 for
the three months ended May 2, 2009. Net sales were $322,077,000
for the three months ended May 1, 2010, from $293,098,000 for the
three months ended May 2, 2009.
At May 1, 2010, the Company had total assets of $2,828,167,000
against total current liabilities of $189,612,000; long-term debt
of $2,297,603,000; revolving credit facility of $194,000,000;
obligations under capital leases of $17,290,000; deferred tax
liability of $121,156,000; deferred rent expense of $22,680,000;
unfavorable lease obligations and other long-term liabilities of
$34,070,000; resulting in stockholder's deficit of $48,244,000.
At Jan. 30, 2010, the Company had total assets of $2,834,105,000
against total current liabilities of $181,512,000, long-term debt
of $2,313,378,000, revolving credit facility of $194,000,000,
deferred tax liability of $122,145,000, deferred rent expense of
$22,082,000 and unfavorable lease obligations and other long-term
liabilities of $35,630,000; resulting in stockholders' deficit of
$34,642,000.
About Claire's Stores
Claire's Stores, Inc. -- http://www.clairestores.com/-- operates
as a specialty retailer of fashion accessories and jewelry for
preteens and teenagers, as well as for young adults in North
America and internationally. It offers jewelry products that
comprise costume jewelry, earrings, and ear piercing services; and
accessories, including fashion accessories, hair ornaments,
handbags, and novelty items.
Based in Pembroke Pines, Florida, Claire's Stores operates under
two brands: Claire's(R), which operates worldwide and Icing(R),
which operates only in North America. As of Jan. 31, 2009,
Claire's Stores, Inc., operated 2,969 stores in North America and
Europe. Claire's Stores, Inc., also operates through its
subsidiary, Claire's Nippon, Co., Ltd., 213 stores in Japan as a
50:50 joint venture with AEON, Co., Ltd. The Company also
franchises 198 stores in the Middle East, Turkey, Russia, South
Africa, Poland and Guatemala.
CLEARWATER PAPER: S&P Keeps 'BB' Rating, Hikes Outlook to Positive
------------------------------------------------------------------
Standard & Poor's Ratings Services revised its rating outlook on
Spokane, Wash.-based Clearwater Paper Corp. to positive from
stable. At the same time, S&P affirmed its ratings on the
company, including its 'BB' corporate credit rating.
"The positive rating outlook reflects the strengthening in
Clearwater Paper's credit measures due to lower raw material costs
in 2009," said Standard & Poor's credit analyst Andy Sookram.
"The outlook revision is also based on S&P's expectations that
credit measures will remain at a level S&P would consider to be
good for the 'BB' rating in the near term, despite higher input
costs in the last two quarters." While S&P thinks input costs
will likely increase for the year ending Dec. 31, 2010, compared
with the previous year, S&P believes higher paperboard demand
associated with a recovering U.S. economy, continued good demand
for private-label tissue products, and producers' efforts to pass
on higher costs through sales price increases will offset most of
the cost increases and keep operating margins in the midteens
area.
S&P's rating incorporates the expectation that adjusted EBITDA
could decline by up to 15% during 2010, to $160 million from
$190 million in 2009, influenced by higher costs for fiber, pulp,
and chemicals. While S&P expects adjusted debt to EBITDA to
weaken somewhat under these performance assumptions, to 2x from
1.8x, S&P believes this level is still consistent with a higher
rating given its assessment of the company's fair business risk
profile. However, S&P considers a better understanding of the
company's financial policies relative to shareholder initiatives
given its recent history as a stand-alone company, and its
business growth plans to be key factors in determining an upgrade.
S&P could raise the ratings if input costs do not rise
significantly above its current expectations and if the increase
in demand and prices is sustained. For the higher rating, S&P
would expect adjusted debt to EBITDA to remain below 2x, given its
assessment of the company's business risk profile as fair, and S&P
would need to assess its comfort about the company's future
financial policies relative to investment opportunities and
shareholder initiatives.
Conversely, S&P could revise the rating outlook to stable if
credit measures were to weaken from current levels because, among
other considerations, paperboard and tissue demand and selling
prices do not hold up in 2010, if there is sharp increase in raw
material costs that the company cannot pass on through higher
selling prices, or if the company pursues meaningful acquisitions
or shareholder initiatives.
COLONIAL BANCGROUP: Unit Files for Chapter 7 Protection
-------------------------------------------------------
BankruptcyData.com reports that Colonial Brokerage, a wholly-owned
subsidiary of Colonial BancGroup, filed for Chapter 7 protection
with the U.S. Bankruptcy Court in the Middle District of Alabama.
The Chapter 7 trustee responsible for the liquidation of the
business through the bankruptcy case is Susan S. DePaola.
About Colonial BancGroup
Headquartered in Montgomery, Alabama, The Colonial BancGroup, Inc.
(NYSE: CNB) was holding company to Colonial Bank, N.A, its
banking subsidiary. Colonial bank -- http://www.colonialbank.com/
-- operated 354 branches in Florida, Alabama, Georgia, Nevada and
Texas with over $26 billion in assets. On August 14, 2009,
Colonial Bank was seized by regulators and the Federal Deposit
Insurance Corporation was named receiver. The FDIC sold most of
the assets to Branch Banking and Trust, Winston-Salem, North
Carolina. BB&T acquired $22 billion in assets and assumed
$20 billion in deposits of the Bank.
The Colonial BancGroup filed for Chapter 11 bankruptcy protection
on August 25, 2009 (Bankr. M.D. Ala. Case No. 09-32303). W. Clark
Watson, Esq., at Balch & Bingham LLP and Rufus T. Dorsey IV,
Esq., at Parker Hudson Rainer & Dobbs LLP, assist the Company in
its restructuring effort. The Company listed $45,000,000 in
assets and $380,000,000 in debts in its bankruptcy filing.
COMMUNITY HEALTH: Bank Debt Trades at 7% Off in Secondary Market
----------------------------------------------------------------
Participations in a syndicated loan under which Community Health
Systems, Inc., is a borrower traded in the secondary market at
92.90 cents-on-the-dollar during the week ended Friday, June 11,
2010, according to data compiled by Loan Pricing Corp. and
reported in The Wall Street Journal. This represents a drop of
0.74 percentage points from the previous week, The Journal
relates. The Company pays 225 basis points above LIBOR to borrow
under the facility. The bank loan matures on May 1, 2014, and
carries Moody's Ba2 rating and Standard & Poor's BB rating. The
debt is one of the biggest gainers and losers among 185 widely
quoted syndicated loans with five or more bids in secondary
trading for the week ended Friday.
Based in Franklin, Tennessee, Community Health Systems, Inc. --
http://www.chs.net/-- is the largest publicly traded operator of
hospitals in the United States in terms of number of facilities
and net operating revenues. The company provides healthcare
services through these hospitals that it owns and operates in non-
urban and selected urban markets throughout the United States.
The company also owns and operates home health agencies, including
four home health agencies located in markets where it does not
operate a hospital. Through its wholly owned subsidiary, Quorum
Health Resources, LLC, the company provides management and
consulting services to non-affiliated general acute care hospitals
located throughout the United States.
CONG CHABAD-LUBAVITCH: Voluntary Chapter 11 Case Summary
--------------------------------------------------------
Debtor: Cong Chabad-Lubavitch of Greater Boynton
aka Congregation Chabad-Lubavitch of Greater Boynton
Beach Inc.
10655 El Clair Ranch Road
Boynton Beach, FL 33437
Bankruptcy Case No.: 10-26372
Chapter 11 Petition Date: June 10, 2010
Court: U.S. Bankruptcy Court
Southern District of Florida (West Palm Beach)
Judge: Paul G. Hyman Jr.
Debtor's Counsel: Joel M. Aresty, Esq.
13499 Biscayne Boulevard #T-3
No. Miami, FL 33181
Tel: (305) 899-9876
Fax: (305) 723-7893
E-mail: aresty@mac.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 creditors together with its
petition.
The petition was signed by Sholom Ciment, president.
CONJUCHEM BIOTECHNOLOGIES: Creditors OK Plan of Reorganization
--------------------------------------------------------------
ConjuChem Biotechnologies Inc. disclosed the plan of arrangement
submitted to its creditors under the Companies' Creditors
Arrangement Act was duly approved at a meeting of creditors.
ConjuChem's motion to obtain the sanction of the Plan by the
Superior Court of Quebec (commercial division) is presentable on
June 15, 2010, at 9:00 a.m. in room B-107 of the Saint-Jerome
Court House at 25 Martigny Street West, Saint-Jerome, Quebec.
Once the Sanction Order is obtained, the Plan will be implemented
and distributions will be made to the creditors in accordance with
the terms of the Plan.
Pursuant to the Plan, the existing common shares of ConjuChem will
be effectively cancelled for no consideration.
About ConjuChem
ConjuChem, developer of next generation medicines from therapeutic
peptides, is creating long-acting compounds based on
bioconjugation platform technologies. When applied to peptides,
the Company's systemic PC-DAC(TM) Technologies enable the creation
of new drugs with significantly enhanced therapeutic properties as
compared to the original peptide.
CONTINENTAL AIRLINES: Hires Bain & Co. to Advise on UAL Merger
--------------------------------------------------------------
According to The Wall Street Journal's Susan Carey, UAL Corp.'s
United Airlines and Continental Airlines Inc., preparing for a
deal closing late this year, have embarked on integration
planning, forming a steering committee of executives to oversee it
and establishing about 30 teams of employees to delve into the
many details of aligning functions ranging from maintenance to
sales to information technology.
According to Ms. Carey, UAL Corp. chief executive Glenn Tilton
disclosed Thursday that United Airlines and Continental Airlines
Inc. have hired consultants from Bain & Co. to help with that
process. Bain assisted Delta Air Lines Inc. and Northwest
Airlines Corp. in their 2008 merger. Bain declined to comment,
the Journal relates.
Ms. Carey also reports Mr. Tilton said the merger won't be a
panacea, and the combined carrier must continue to innovate and
evolve if it hopes to become financially sustainable. Ms. Carey
relates that Mr. Tilton, speaking at what could be the last annual
meeting for United in its current form, also said the entire
airline industry must change dramatically for the merged carrier
to be able to produce profit margins that businesses in other
sectors routinely earn.
Pending Merger Deal
As reported by the Troubled Company Reporter on May 4, 2010,
Continental Airlines and UAL Corporation's United Airlines
announced a definitive merger agreement, creating the world's
biggest airline. The deal is an all-stock merger of equals.
Continental shareholders will receive 1.05 shares of United common
stock for each Continental common share they own. The acquisition
is valued at $3.17 billion, based on the April 30, 2010 closing
price, according to The New York Times. The merger is expected to
be completed before the end of 2010. United shareholders would
own approximately 55% of the equity of the combined company and
Continental shareholders would own approximately 45%, including
in-the-money convertible securities on an as-converted basis.
About Continental Airlines
Houston, Texas-based Continental Airlines (NYSE: CAL) --
http://www.continental.com/-- is the world's fifth largest
airline. Continental, together with Continental Express and
Continental Connection, has more than 2,700 daily departures
throughout the Americas, Europe and Asia, serving 132 domestic and
137 international destinations. Continental is a member of Star
Alliance, which overall offers more than 21,050 daily flights to
1,167 airports in 181 countries through its 27 member airlines.
With more than 40,000 employees, Continental has hubs serving New
York, Houston, Cleveland and Guam, and together with its regional
partners, carries approximately 63 million passengers per year.
At December 31, 2009, Continental had total assets of
$12.781 billion against total current liabilities of
$4.389 billion; long-term debt and capital leases of
$5.291 billion; deferred income taxes of $203 million; accrued
pension liability of $1.248 billion; accrued retiree medical
benefits of $216 million; and other liabilities of $844 million.
At December 31, 2009, the Company had accumulated deficit of
$442 million, accumulated other comprehensive loss of
$1.185 billion and stockholders' equity of $590 million. The
December 31 balance sheet showed strained liquidity: Continental
had total current assets of $4.373 billion against total current
liabilities of $4.389 billion.
* * *
As reported by the Troubled Company Reporter on May 5, 2010, Fitch
Ratings has affirmed the Issuer Default Rating for Continental
Airlines, Inc., at 'B-' and the senior unsecured rating at
'CC/RR6' following the announcement of the planned merger between
CAL and UAL Corp. The Rating Outlook for CAL is Stable.
The TCR on May 5, 2010, also said Standard & Poor's Ratings
Services placed its 'B' corporate credit rating on Continental
Airlines, and S&P's ratings on its secured and unsecured debt, on
CreditWatch with negative implications. S&P also placed its
ratings on Continental's enhanced equipment trust certificates on
CreditWatch with developing implications. Although S&P's recovery
ratings on selected Continental unsecured debt are unaffected by
the rating action, S&P will review them as well.
About UAL Corporation
Based in Chicago, Illinois, UAL Corporation (NASDAQ: UAUA) --
http://www.united.com/-- is the holding company for United
Airlines, Inc. United Airlines is the world's second largest air
carrier. The airline flies to Brazil, Korea and Germany.
The company filed for Chapter 11 protection on Dec. 9, 2002
(Bankr. N.D. Ill. Case No. 02-48191). James H.M. Sprayregen,
Esq., Marc Kieselstein, Esq., David R. Seligman, Esq., and Steven
R. Kotarba, Esq., at Kirkland & Ellis, represented the Debtors in
their restructuring efforts. Fruman Jacobson, Esq., at
Sonnenschein Nath & Rosenthal LLP represented the Official
Committee of Unsecured Creditors. Judge Eugene R. Wedoff
confirmed a reorganization plan for United on Jan. 20, 2006. The
Company emerged from bankruptcy on Feb. 1, 2006.
Reorganized UAL Corp. carries a 'Caa1' probability of default
rating from Moody's, 'B-' long term foreign issuer credit rating
from Standard & Poor's, and 'CCC' long term issuer default rating
from Fitch.
CONTINENTAL AIRLINES: Pilots Want Equity in Combined Company
------------------------------------------------------------
The Wall Street Journal's Susan Carey reports that Jay Pierce,
head of the Continental Airlines pilots' group addressed
Continental's annual meeting Wednesday in Houston. She reports
that Mr. Pierce reiterated that Continental's 4,600 pilots believe
the merger could be successful, but only if the deal receives
labor support, and specifically the backing of the powerful pilot
groups. According to Mr. Pierce, Continental pilots want equity
in the combined company, a joint labor agreement with substantial
improvements and a fair method for integrating the aviators'
seniority.
Ms. Carey notes that one of the more difficult challenges the
airlines face is reaching new labor contracts with their unionized
employees. She explains all the current agreements now are open
for renegotiation, and workers hope to regain ground from
concessions they made after the September 11 terrorist attacks.
The Journal says numerous questions were raised about labor issues
at United's annual meeting, held in suburban Chicago. The
Association of Flight Attendants union, which represents United
cabin crew members, held a demonstration before the event.
Ms. Carey also reports that Mr. Pierce said pilot unions at United
and Continental, which are represented by different branches of
the Air Line Pilots Association, already have formed a joint
negotiating committee and are "going gangbusters" preparing for
contract talks with the airlines. Ms. Carey relates Mr. Pierce
said the two groups hope they can settle on a common labor pact by
the time the merger closes, although the merger isn't contingent
upon that.
Ms. Carey also says the United branch of ALPA, which represents
6,500 active pilots and 1,400 on furlough, has signaled guarded
support for the merger, partly because the pilots from Continental
command higher pay rates as a result of UAL's protracted
bankruptcy from 2002 to early 2006.
"But some of the other employee groups are represented by
different unions at the two airlines, and some of Continental's
employees aren't unionized at all," Ms. Carey writes. "This will
necessitate elections to determine which unions win the rights to
represent the combined groups, whether they're flight attendants,
customer-service agents or ramp workers. Then the winners will
need to negotiate joint contracts and tackle seniority
integration."
Pending Merger Deal
As reported by the Troubled Company Reporter on May 4, 2010,
Continental Airlines and UAL Corporation's United Airlines
announced a definitive merger agreement, creating the world's
biggest airline. The deal is an all-stock merger of equals.
Continental shareholders will receive 1.05 shares of United common
stock for each Continental common share they own. The acquisition
is valued at $3.17 billion, based on the April 30, 2010 closing
price, according to The New York Times. The merger is expected to
be completed before the end of 2010. United shareholders would
own approximately 55% of the equity of the combined company and
Continental shareholders would own approximately 45%, including
in-the-money convertible securities on an as-converted basis.
About Continental Airlines
Houston, Texas-based Continental Airlines (NYSE: CAL) --
http://www.continental.com/-- is the world's fifth largest
airline. Continental, together with Continental Express and
Continental Connection, has more than 2,700 daily departures
throughout the Americas, Europe and Asia, serving 132 domestic and
137 international destinations. Continental is a member of Star
Alliance, which overall offers more than 21,050 daily flights to
1,167 airports in 181 countries through its 27 member airlines.
With more than 40,000 employees, Continental has hubs serving New
York, Houston, Cleveland and Guam, and together with its regional
partners, carries approximately 63 million passengers per year.
At December 31, 2009, Continental had total assets of
$12.781 billion against total current liabilities of
$4.389 billion; long-term debt and capital leases of
$5.291 billion; deferred income taxes of $203 million; accrued
pension liability of $1.248 billion; accrued retiree medical
benefits of $216 million; and other liabilities of $844 million.
At December 31, 2009, the Company had accumulated deficit of
$442 million, accumulated other comprehensive loss of
$1.185 billion and stockholders' equity of $590 million. The
December 31 balance sheet showed strained liquidity: Continental
had total current assets of $4.373 billion against total current
liabilities of $4.389 billion.
* * *
As reported by the Troubled Company Reporter on May 5, 2010, Fitch
Ratings has affirmed the Issuer Default Rating for Continental
Airlines, Inc., at 'B-' and the senior unsecured rating at
'CC/RR6' following the announcement of the planned merger between
CAL and UAL Corp. The Rating Outlook for CAL is Stable.
The TCR on May 5, 2010, also said Standard & Poor's Ratings
Services placed its 'B' corporate credit rating on Continental
Airlines, and S&P's ratings on its secured and unsecured debt, on
CreditWatch with negative implications. S&P also placed its
ratings on Continental's enhanced equipment trust certificates on
CreditWatch with developing implications. Although S&P's recovery
ratings on selected Continental unsecured debt are unaffected by
the rating action, S&P will review them as well.
About UAL Corporation
Based in Chicago, Illinois, UAL Corporation (NASDAQ: UAUA) --
http://www.united.com/-- is the holding company for United
Airlines, Inc. United Airlines is the world's second largest air
carrier. The airline flies to Brazil, Korea and Germany.
The company filed for Chapter 11 protection on Dec. 9, 2002
(Bankr. N.D. Ill. Case No. 02-48191). James H.M. Sprayregen,
Esq., Marc Kieselstein, Esq., David R. Seligman, Esq., and Steven
R. Kotarba, Esq., at Kirkland & Ellis, represented the Debtors in
their restructuring efforts. Fruman Jacobson, Esq., at
Sonnenschein Nath & Rosenthal LLP represented the Official
Committee of Unsecured Creditors. Judge Eugene R. Wedoff
confirmed a reorganization plan for United on Jan. 20, 2006. The
Company emerged from bankruptcy on Feb. 1, 2006.
Reorganized UAL Corp. carries a 'Caa1' probability of default
rating from Moody's, 'B-' long term foreign issuer credit rating
from Standard & Poor's, and 'CCC' long term issuer default rating
from Fitch.
COYOTES HOCKEY: Iced Edge Taps HighGround for Acquisition
---------------------------------------------------------
Mike Sunnucks at Business Journal of Phoenix reports that Ice Edge
Holdings hired HighGround Public Affairs Consultants to help it
acquire the Phoenix Coyotes hockey team.
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 the third quarter of 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 NHL is in the process of selling the team.
CRACKER BARREL: Bank Debt Trades at 3% Off in Secondary Market
--------------------------------------------------------------
Participations in a syndicated loan under which Cracker Barrel Old
Country Store, Inc., is a borrower traded in the secondary market
at 97.25 cents-on-the-dollar during the week ended Friday,
June 11, 2010, according to data compiled by Loan Pricing Corp.
and reported in The Wall Street Journal. This represents a drop
of 0.88 percentage points from the previous week, The Journal
relates. The Company pays 150 basis points above LIBOR to borrow
under the facility. The bank loan matures on April 27, 2013, and
carries Moody's Ba3 rating and Standard & Poor's BB- rating. The
debt is one of the biggest gainers and losers among 185 widely
quoted syndicated loans with five or more bids in secondary
trading for the week ended Friday.
As reported by the Troubled Company Reporter on Oct. 22, 2009,
Moody's affirmed all ratings of Cracker Barrel Old Country Store,
Inc., including its Ba3 Corporate Family Rating and Probability of
Default Rating and Ba3 senior secured rating. In addition, the
outlook for CBRL was changed to stable from negative.
On Oct. 16, 2009, The TCR stated that Standard & Poor's revised
its outlook on Cracker Barrel Old Country Store, Inc., to stable
from negative because of improved credit metrics and improved
cushion over financial covenants. S&P also affirmed the ratings
on the company, including the 'BB-' corporate credit rating.
Cracker Barrel Old Country Store, Inc., headquartered in
Tennessee, owns and operates the Cracker Barrel Old Country Store
restaurant and retail concept with approximately 590 restaurants
in 41 states. Annual revenues are approximately $2.4 billion.
CRESCENT RESOURCES: Successfully Emerges from Chapter 11
--------------------------------------------------------
Crescent Resources disclosed that on June 9, 2010, the company
successfully completed its financial restructuring and emerged
from Chapter 11. As a result, the Company now has a significantly
improved capital structure, having eliminated over $1 billion of
debt from its balance sheet through the restructuring process.
"Today is a very proud day for Crescent Resources," said Andrew
Hede, Chief Executive Officer and Chief Restructuring Officer of
Crescent Resources. "In the last 12 months, we have significantly
strengthened the financial position of the company, while
continuing to operate effectively and successfully. With the
restructuring behind us, we emerge a much stronger entity, well
positioned for future growth and able to deliver the high level of
service our customers have come to expect. I would like to
emphasize our appreciation for our employees, partners, and all
our stakeholders who have made this day possible thanks to their
commitment and support throughout this process."
Crescent Resources, LLC, filed for protection under Chapter 11 of
the U.S. Bankruptcy Court in the Western District of Texas, Austin
Division on June 10, 2009. Crescent filed its plan of
reorganization on January 29, 2010. Its plan of reorganization
was confirmed by the Court on May 24, 2010.
About Crescent Resources
Crescent Resources, LLC -- http://www.crescent-resources.com/--
is a land management and real estate development company with
interests in 10 states in the southeastern and southwestern United
States. Crescent Resources is a joint venture between Duke Energy
and Morgan Stanley Real Estate Fund. Established in 1969,
Crescent creates mixed-use developments, country club communities,
single-family neighborhoods, apartment and condominium
communities, Class A office space, business and industrial parks
and shopping centers.
Crescent Resources, LLC, and its debtor-affiliates filed for
Chapter 11 protection on June 10, 2009, with the U.S. Bankruptcy
Court for the Western District of Texas (Austin), lead case number
09-11507, before Judge Craig A. Gargotta. Eric J. Taube, Esq., at
Hohmann, Taube & Summers, L.L.P., is serves as the Debtors'
bankruptcy counsel.
CRESCENT RESOURCES: Sues Former CEO Over $2.4 Mil. in Tax Payments
------------------------------------------------------------------
Crescent Resources LLC is going after its former president,
accusing him of breaching contract by accepting more than
$2.4 million to offset taxes on an interest that never vested,
Bankruptcy Law360 reports. Law360 says Crescent, whose Chapter 11
bankruptcy restructuring plan was approved late in May, filed an
adversary proceeding Wednesday in the U.S. Bankruptcy Court for
the Western District of Texas.
About Crescent Resources
Crescent Resources, LLC -- http://www.crescent-resources.com/--
is a land management and real estate development company with
interests in 10 states in the southeastern and southwestern United
States. Crescent Resources is a joint venture between Duke Energy
and Morgan Stanley Real Estate Fund. Established in 1969,
Crescent creates mixed-use developments, country club communities,
single-family neighborhoods, apartment and condominium
communities, Class A office space, business and industrial parks
and shopping centers.
Crescent Resources, LLC, and its debtor-affiliates filed for
Chapter 11 protection on June 10, 2009, with the U.S. Bankruptcy
Court for the Western District of Texas (Austin), lead case number
09-11507, before Judge Craig A. Gargotta. Eric J. Taube, Esq., at
Hohmann, Taube & Summers, L.L.P., is serves as the Debtors'
bankruptcy counsel.
CRYSTAL RIVER: Swings to $32.9 Million Net Income in Q1 2010
------------------------------------------------------------
Crystal River Capital, Inc., filed its quarterly report on Form
10-Q, reporting net income of $32.9 million on $166.2 million of
revenue for the three months ended March 31, 2010, compared with a
net loss of $10.0 million on $20.0 million of revenue for the same
period ended March 31, 2009.
The primary contributor to the first quarter 2010 net income was
the gain on the extinguishment of the Company's junior
subordinated notes of $39.9 million.
The Company's balance sheet as of March 31, 2010, showed
$4.826 billion in assets and $4.849 billion of liabilities, for a
stockholders' deficit of $22.9 million.
As reported in the Troubled Company Reporter on March 29, 2010,
Ernst & Young LLP, in New York, expressed substantial doubt about
the Company's ability to continue as a going concern after
auditing the Company's financial statements for the year ended
December 31, 2009. The independent auditors noted of the
Company's inability to refinance or extend the maturity of
indebtedness maturing in the next 12 months.
"As of March 31, 2010, we owed $28.9 million to an affiliate of
our Manager [Crystal River Capital Advisors, LLC] under our
secured credit facility. The maturity date of the credit facility
was extended to August 31, 2010, unless sooner terminated as
provided in the credit agreement; provided, however, that,
notwithstanding the foregoing, the term of the credit facility
will expire upon the latest of (i) May 25, 2010, (ii) the
effective time of the Merger [with Brookfield Asset Management
Inc.], and (iii) thirty (30) calendar days following the
termination of the Merger Agreement, but in no event later than
August 31, 2010. As a result of our possible inability to extend,
refinance or repay this indebtedness, there is substantial doubt
about our ability to continue as a going concern."
Proposed Acquisition of Crystal River
On February 24, 2010, Crystal River announced that the Company has
entered into a definitive merger agreement with Brookfield Asset
Management Inc. pursuant to which Brookfield has agreed to acquire
all the outstanding common stock of Crystal River that Brookfield
does not already own for cash at a price of $0.60 per share.
The Merger was unanimously approved by the independent members of
the board of directors, and by the Special Committee of
disinterested directors formed to oversee Crystal River's
strategic review process. The transaction is subject to approval
by Crystal River's stockholders holding a majority of the
shares entitled to vote at a special meeting of stockholders, as
well as other customary closing conditions. Consummation of the
Merger is not subject to a financing condition and Brookfield has
consented to the transaction in its capacity as Crystal River's
senior lender. The Merger Agreement does not prohibit Crystal
River from receiving and evaluating competing bids prior to
completion of the Merger and does not require the payment of a
termination fee if Crystal River accepts a superior bid. Crystal
River will be obligated to reimburse Brookfield for all of its
transaction expenses if the Merger Agreement is terminated other
than as result of a breach by Brookfield.
On March 18, 2010, Crystal River received a preliminary written
non-binding indication of interest from Laurel Canyon Partners,
LLC, expressing an interest in pursuing an acquisition of all the
common stock of Crystal River in a negotiated all-cash merger or
other cash transaction at a price of $0.75 per share, subject to
conditions described in the proposal. The Special Committee has
notified Brookfield, as required under the Merger Agreement, that
the Laurel Canyon proposal could reasonably be expected to be a
superior proposal to the Brookfield transaction, but Crystal River
has not reached an agreement with Laurel Canyon that would be
sufficient to terminate the Brookfield transaction.
A full-text copy of the quarterly report is available for free at:
http://researcharchives.com/t/s?64ad
Based in New York, Crystal River Capital, Inc. (OTC BB: CYRV)
-- http://www.crystalriverreit.com/-- is a specialty finance
REIT. The Company invests in commercial real estate, real estate
loans, and real estate-related securities, such as commercial and
residential mortgage-backed securities.
CYTOMEDIX INC: Posts $1.1 Million Net Loss in Q1 2010
-----------------------------------------------------
Cytomedix, Inc., filed its quarterly report on Form 10-Q,
reporting a net loss of $1,061,207 on $178,734 of revenue for the
three months ended March 31, 2010, compared with a net loss of
$890,836 on $539,137 of revenue for the same period of 2009.
The Company's balance sheet at March 31, 2010, showed $1,603,803
in assets, $1,029,359 of liabilities, and $574,444 of
shareholders' equity.
As reported in the Troubled Company Reporter on April 1, 2010,
PricewaterhouseCoopers LLP, in McLean, Va., expressed substantial
doubt about the Company's ability to continue as a going concern
after auditing the Company's financial statements for the year
ended December 31, 2009. The independent auditors noted that of
the Company's recurring losses from operations and insufficient
liquidity.
The licensing agreements, under which the Company's royalty
revenues were generated, expired in late November 2009.
The Company will require additional capital to finance the
development of its business operations. There is no assurance
that such capital will be available on acceptable terms or at all.
A full-text copy of the quarterly report is available for free at:
http://researcharchives.com/t/s?64b3
Rockville, Md.-based Cytomedix, Inc., is a biotechnology company
that develops, sells, and licenses regenerative biological
therapies, to primarily address the areas of wound care,
inflammation, and angiogenesis.
DANIEL DWYER: Case Summary & 20 Largest Unsecured Creditors
-----------------------------------------------------------
Joint Debtors: Daniel Edward Dwyer
aka Dan Dwyer, MD
dba Omega Mental Health
Kristina Joan Harrington
aka Kristina Harrington, MD
dba Omega Mental Health
5001 N. Quail Summit Way
Boise, ID 83703
Bankruptcy Case No.: 10-01801
Chapter 11 Petition Date: June 9, 2010
Court: U.S. Bankruptcy Court
District of Idaho (Boise)
Judge: Terry L. Myers
Debtor's Counsel: Martin J. Martelle, Esq.
Martelle Law Offices
873 E State Street
Eagle, ID 83616
Tel: (208) 938-8500
Fax: (208) 938-8503
E-mail: sarah@martellelaw.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
According to the schedules, the Debtors say that assets total
$1,256,181 while debts total $2,051,424.
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/idb10-01801.pdf
The petition was signed by the Joint Debtors.
DEATH ROW: Dr. Dre May Pursue Royalties; Other Claims Barred
------------------------------------------------------------
Jacqueline Palank at Dow Jones Daily Bankruptcy News reports that
U.S. District Judge Christina A. Snyder last week said rapper Dr.
Dre may proceed with a lawsuit seeking unpaid royalties from the
sale of his hip-hop album "The Chronic", released in 1992 by Death
Row Records. Judge Snyder, however, barred the rapper from
pursuing the rest of his claims, like false advertising and
trademark infringement.
Dow Jones recalls Dr. Dre in February sued WIDEawake Death Row
Entertainment LLC -- which bought Death Row out of bankruptcy in
2009 -- for its release of "The Chronic Re-Lit & From the Vault,"
as well as a greatest hits compilation. Dr. Dre also sought more
than $75,000 in royalties that he says have gone unpaid for years,
the claim that Judge Snyder allowed to stand, Dow Jones relates.
Headquartered in Compton, California, Death Row Records Inc.
-- http://www.deathrowrecords.net/-- is an independent record
producer. The company and its owner, Marion Knight, Jr., filed
for chapter 11 protection on April 4, 2006 (Bankr. C.D. Calif.
Case No. 06-11205 and 06-11187). Daniel J. McCarthy, Esq., at
Hill, Farrer & Burrill, LLP, and Robert S. Altagen, Esq.,
represent the Debtors in their restructuring efforts. R. Todd
Neilson serves as chapter 11 Trustee for the Debtors' estate. The
U.S. Trustee for Region 17 appointed creditors to serve on an
Official Committee of Unsecured Creditors. The Committee selected
Pachulski Stang Ziehl & Jones as its counsel. When the Debtors
filed for protection from their creditors, they listed total
assets of $1,500,000 and total debts of $119,794,000.
DELTATHREE INC: Posts $472,000 Net Loss in Q1 2010
--------------------------------------------------
deltathree, Inc., filed its quarterly report on Form 10-Q,
reporting a net loss of $472,000 on $3,065,000 of revenue for the
three months ended March 31, 2010, compared with a net loss of
$441,000 on $5,252,000 of revenue for the same period ended March
31, 2009.
The Company's balance sheet as of March 31, 2010, showed
$2,909,000 in assets and $4,696,000 of liabilities, for a
stockholders' deficit of $1,787,000.
As reported in the Troubled Company Reporter on April 1, 2010,
Brightman Almagor Zohar & Co., in, Tel Aviv, Israel, expressed
substantial doubt about the Company's ability to continue as a
going concern after auditing the Company's financial statements
for the year ended December 31, 2009. The independent auditors
noted that of the Company's recurring losses from operations and
deficiency in stockholders' equity.
As of March 31, 2010, the Company had negative working capital
equal to roughly $2.3 million as well as negative stockholders'
equity equal to roughly $1.8 million. The Company believes that
it will continue to experience losses and increased negative
working capital and negative stockholders' equity in the near
future and may not be able to return to positive cash flow before
it requires additional cash in the near term.
A full-text copy of the quarterly report is available for free at:
http://researcharchives.com/t/s?64b2
Based in New York, deltathree, Inc. (OTC BB: DDDC.OB)
-- http://www.deltathree.com/-- is a global provider of
integrated Voice over Internet Protocol, or VoIP, telephony
services, products, hosted solutions and infrastructure.
DENA MENDES: Case Summary & 8 Largest Unsecured Creditors
---------------------------------------------------------
Debtor: Dena R. Herman Mendes
aka Dena Herman
Dena Mendes
fdba Brasa Brasil Grill
Bistro de l'Hermitage
325 Via De Law Paz
Pacific Palisades, CA 90272
Bankruptcy Case No.: 10-33346
Chapter 11 Petition Date: June 8, 2010
Court: U.S. Bankruptcy Court
Central District of California (Los Angeles)
Judge: Victoria S. Kaufman
Debtor's Counsel: David I. Brownstein, Esq.
Brownstein & Brownstein LLP
21700 Oxnard Street, Suite 1160
Woodland, CA 91367
Tel: (818) 905-0000
Fax: (818) 593-3988
E-mail: brownsteinlaw@gmail.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
A copy of the Debtor's list of 8 largest unsecured creditors
filed together with the petition is available for free
at http://bankrupt.com/misc/cacb10-33346.pdf
The petition was signed by the Debtor.
DENNY'S HOLDINGS: Moody's Retains 'B2' Corporate Family Rating
--------------------------------------------------------------
Moody's Investors Service stated that the B2 Corporate Family and
Probability of Default ratings and the Stable rating outlook for
Denny's Holdings, Inc., will not immediately be affected by the
departure of Nelson Marchioli as Chief Executive Officer.
The most recent rating action on Denny's occurred on April 21,
2009, when the ratings were downgraded -- Corporate Family and
Probability of Default ratings to B2 from B1.
Denny's Holdings, Inc., headquartered in Spartanburg, South
Carolina, owns, operates and franchises full-service family dining
restaurants. Annual revenues are approximately $600 million.
DREXELVIEW CLUB: Voluntary Chapter 11 Case Summary
--------------------------------------------------
Debtor: Drexelview Club Associates, LP
c/o Jeffrey Kurtzman, Esq.
Klehr Harrison Harvey Branzburg LLP
1835 Market Street
Suite 1400
Philadelphia, PA 19103
Bankruptcy Case No.: 10-14735
Chapter 11 Petition Date: June 8, 2010
Court: United States Bankruptcy Court
Eastern District of Pennsylvania (Philadelphia)
Judge: Bruce I. Fox
Debtor's Counsel: Jeffrey Kurtzman, Esq.
Klehr Harrison Harvey Branzburg LLP
1835 Market Street, Suite 1400
Philadelphia, PA 19103
Tel: (215) 569 4493
Fax: (215) 568-6603
E-mail: jkurtzma@klehr.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 Mark Levin, manager of general partner.
Debtor-affiliate that filed separate Chapter 11 petition:
Petition
Debtor Case No. Date
------ -------- ----
Springfield Green Associates, LP 10-14741 06/08/10
EAST GADSDEN: Wants to Sell Parcel of Land for $3.75 Million
------------------------------------------------------------
East Gadsden Golf Club Inc. asked the U.S. Bankruptcy Court for
permission to sell its 14 acres of the River Trace Golf Course for
$3.75 million, which proceeds will be used to pay off its debts
and administration costs, and spend about $150,000 to relocate
three holes to other parts of the course and provide a small
dividend to shareholders, according to Andy Powell of The Gadsden
Times. The Company proposed a minimum offer of $3.75 million and
have an online sealed-bid auction of its assets.
The Company filed for Chapter 11 bankruptcy at an Etowah County
Courthouse, in Alabama, to avert the foreclosure sale of its 103-
acre River Trace Golf Court property by First Jackson Bank of
Stevenson. The Company listed assets of $13,332,500 million and
debts of $2,724,804.
EDGEN MURRAY II: Moody's Junks Corporate Family Rating from 'B3'
----------------------------------------------------------------
Moody's Investors Service lowered Edgen Murray II, L.P.'s
corporate family rating to Caa1 from B3 and changed the company's
rating outlook to negative from stable. The company's 12.25%
senior secured notes were downgraded to Caa2 from Caa1. The
downgrades and the negative rating outlook reflect an adverse
reassessment of the pace and magnitude of the rebound in Edgen
Murray's sales in light of weaker than expected energy sector
activity and the cumulative negative impact of global credit
market disruptions, low natural gas prices, low industrial
production, and the strong US dollar. While 2010 was anticipated
to be a tough year for Edgen Murray, it now appears that it will
be more challenging than originally thought, with a recovery
pushed out by several quarters. Although Edgen Murray has
adequate liquidity, the near-term challenges to its business make
a Caa1 corporate family rating appropriate at this time.
In 2009, approximately 87% of Edgen Murray's sales were energy
related, with oil and natural gas industry customers representing
77% of sales. In 2009, 64% of sales were derived from the Western
Hemisphere and 36% from the Eastern Hemisphere. With natural gas
prices still low and oil prices declining, there is little impetus
for a material rebound in Edgen Murray's sales. Furthermore,
intense competition for new orders is likely to keep the company's
operating margin low even after oil and gas drilling and capital
budgets recover. Moody's do not believe, however, that
repercussions related to the Deepwater Horizon oil spill and
restrictions on deepwater drilling are a meaningful concern for
Edgen Murray. The company has little exposure to deepwater
drilling in the Gulf of Mexico and could benefit from a shift to
onshore exploration, production and gas gathering pipelines.
With Moody's revised forecast for 2010, Moody's expect the
company's EBITDA will be less than its $57 million of interest and
that debt to EBITDA will be greater than 10x at year-end 2010.
Without clear visibility into energy expenditures in the third and
fourth quarters of 2010, and knowing that Edgen Murray's business
lags the cycle, the totality of risks confronting Edgen Murray
suggests that a Caa1 corporate family rating is appropriate.
Edgen Murray's Caa1 corporate family rating reflects its high
leverage, exposure to highly cyclical end markets, relatively
small size, negligible tangible assets, and negligible
profitability. Edgen Murray's rating is supported by the
company's global presence, solid position in niche markets within
the oil and gas industry, and the countercyclical nature of its
working capital investment, which results in cash inflows when
demand falls.
These ratings were downgraded:
For Edgen Murray II, L.P.
* Corporate family rating -- to Caa1 from B3
* Probability of default rating -- to Caa1 from B3
For Edgen Murray Corporation
* 12.25% senior secured notes due 2015 -- Caa2 (LGD4, 61%) from
Caa1
Moody's last rating action for Edgen Murray was on December 9,
2009, when its senior secured notes were rated Caa1. Edgen
Murray's ratings have been assigned by evaluating factors that
Moody's believes are relevant to the company's risk profile, such
as the company's (i) business risk and competitive position
compared with others within the industry; (ii) capital structure
and financial risk; (iii) projected performance over the near to
intermediate term; and (iv) management's track record and
tolerance for risk. These attributes were compared against other
issuers both within and outside Edgen Murray's core industry;
Edgen Murray's ratings are believed to be comparable to those of
other issuers with similar credit risk.
Edgen Murray II L.P., headquartered in Baton Rouge, Louisiana, is
a distributor of carbon steel and alloy products for use primarily
in specialized applications in the energy and niche industrial
segments. The company operates on a global basis, with
approximately one-third of its sales generated outside of the
Americas, and has distribution centers in five countries to
facilitate timely deliveries to companies and contractors engaged
in the development of new energy infrastructure projects and the
maintenance of existing facilities. In the twelve months ended
March 31, 2010, Edgen Murray had sales of $683 million. The
company is primarily owned by Jefferies Capital Partners, certain
co-investors and members of senior management.
EDWARD MACDONALD: Case Summary & 18 Largest Unsecured Creditors
---------------------------------------------------------------
Debtor: Edward R. MacDonald
dba Waggener Ranch Associates
3401 Bermuda Avenue #28
Davis, CA 95616
Bankruptcy Case No.: 10-35187
Chapter 11 Petition Date: June 9, 2010
Court: U.S. Bankruptcy Court
Eastern District of California (Sacramento)
Judge: Christopher M. Klein
Debtor's Counsel: Stephen M. Reynolds, Esq.
424 2nd Street #A
Davis, CA 95616
Tel: (530) 297-5030
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
$6,968,586 while debts total $7,696,751.
A copy of the Debtor's list of 18 largest unsecured creditors
filed together with the petition is available for free
at http://bankrupt.com/misc/caeb10-35187.pdf
The petition was signed by the Debtor.
E.F.L. PARTNERS: Files List of Largest Unsecured Creditors
----------------------------------------------------------
E.F.L. Partners V filed with the U.S. Bankruptcy Court for the
Eastern District of Pennsylvania a list of its largest unsecured
creditors, disclosing:
Entity Claim Amount
------ ------------
Cafe Spice Restaurant $500,000
35 S. 2nd Street
Philadelphia, PA 19106
Rich Pressman $80,000
1135 Spruce Street
Philadelphia, PA 19107
City of Philadelphia, Dept. of Revenue $30,598
1401 JFK Boulevard
Philadelphia, PA 19102
Ciardi, Ciard and Aston $20,000
Gunton Corporation $11,100
Kone, Inc. $9,576
Sterling Kitchens $5,019
Water Revenue Bureau $150
Headquartered in Philadelphia, Pennsylvania, E.F.L. Partners V
filed for Chapter 11 on May 3, 2010 (Bankr. E.D. Penn. Case No.
10-13655.) Stuart A. Eisenberg, Esq. assists the Debtor in its
restructuring effort. In its schedules, the Debtor listed total
assets of $14,341,200 and total liabilities of $11,947,304.
E.F.L. PARTNERS: Files Schedules of Assets and Liabilities
----------------------------------------------------------
E.F.L. Partners V filed with the U.S. Bankruptcy Court for the
Eastern District of Pennsylvania its schedules of assets and
liabilities, disclosing:
Name of Schedule Assets Liabilities
---------------- ----------- -----------
A. Real Property $14,341,200
B. Personal Property $0
C. Property Claimed as
Exempt
D. Creditors Holding
Secured Claims $11,290,861
E. Creditors Holding
Unsecured Priority
Claims $30,598
F. Creditors Holding
Unsecured Non-priority
Claims $625,845
----------- -----------
TOTAL $14,341,200 $11,947,304
Headquartered in Philadelphia, Pennsylvania, E.F.L. Partners V
filed for Chapter 11 on May 3, 2010 (Bankr. E.D. Penn. Case No.
10-13655.) Stuart A. Eisenberg, Esq. assists the Debtor in its
restructuring effort. In its schedules, the Debtor listed total
assets of $14,341,200 and total liabilities of $11,947,304.
E.F.L. PARTNERS: Taps McCullough Eisenberg as Bankruptcy Counsel
----------------------------------------------------------------
The U.S. Bankruptcy Court for the Eastern District of Pennsylvania
authorized E.F.L. Partners V to employ McCullough Eisenberg, LLC
as counsel.
McCullough Eisenberg is expected to represent the Debtor in the
Chapter 11 proceedings.
The further ordered that the fees for McCullough Eisenberg's
services will be subject to Court approval. The court document
did not disclose the compensation for McCullough Eisenberg's
services.
To the best of the Debtor's knowledge, McCullough Eisenberg is a
"disinterested person" as that term is defined in Section 101(14)
of the Bankruptcy Code.
Headquartered in Philadelphia, Pennsylvania, E.F.L. Partners V
filed for Chapter 11 on May 3, 2010 (Bankr. E.D. Penn. Case No.
10-13655.) Stuart A. Eisenberg, Esq. assists the Debtor in its
restructuring effort. In its schedules, the Debtor listed total
assets of $14,341,200 and total liabilities of $11,947,304.
ELAINE'S RESTAURANT: Case Summary & Largest Unsecured Creditor
--------------------------------------------------------------
Debtor: Elaine's Restaurant LLC
aka Elaine's Rest LLC
aka McGiley Square Pub
1109 Wessie Street
Point Pleasant Beach, NJ 08742
Bankruptcy Case No.: 10-27611
Chapter 11 Petition Date: June 8, 2010
Court: United States Bankruptcy Court
District of New Jersey (Trenton)
Judge: Raymond T. Lyons Jr.
Debtor's Counsel: Jules L. Rossi, Esq.
Law Office of Jules L. Rossi
208 Main Street
Asbury Park, NJ 07712
Tel: (732) 774-5520
Fax: (732) 744-5870
E-mail: jlrbk423@aol.com
Scheduled Assets: $1,110,000
Scheduled Debts: $537,500
In its list of 20 largest unsecured creditors, the Company placed
only one entry:
Entity Nature of Claim Claim Amount
------ --------------- ------------
Provident Bank $10,500
239 Washington Street
Jersey City, NJ 37302
The petition was signed by Elissa R. Freda, managing member.
EMISPHERE TECHNOLOGIES: Inks Collaboration Deal with Novartis
-------------------------------------------------------------
Emisphere Technologies Inc. has entered into an expanded
relationship with Novartis Pharma AG pursuant to which Novartis
has cancelled the Company's Convertible Promissory Note.
The Note was originally issued to Novartis on December 1, 2004 in
connection with the Research Collaboration and Option License
Agreement between the parties of that date and was originally due
December 1, 2009. Previously, Novartis had agreed to extend the
maturity date to June 4, 2010.
In connection with the cancellation of the Note, the parties have
agreed to modify the royalty and milestone payment schedule for
the Research Collaboration and Option Agreement and License
Agreement between the parties for the development of an oral
salmon calcitonin product for the treatment of osteoarthritis and
osteoporosis.
Additionally, the Company has granted Novartis the right to
evaluate the feasibility of using Emisphere's Eligen Technology
with two new compounds to assess the potential for new product
development opportunities. If Novartis chooses to develop oral
formulations of these new compounds using the Eligen Technology,
the parties will negotiate additional agreements. In that case,
Emisphere could be entitled to receive development milestone and
royalty payments in connection with the development and
commercialization of these potentially new products.
About Emisphere Technologies
Based in Cedar Knolls, New Jersey, Emisphere Technologies, Inc.
(OTC BB: EMIS) -- http://www.emisphere.com/-- is a
biopharmaceutical company that focuses on a unique and improved
delivery of pharmaceutical compounds and nutritional supplements
using its Eligen(R) Technology. The Eligen(R) Technology can be
applied to the oral route of administration as well other delivery
pathways, such as buccal, rectal, inhalation, intra-vaginal or
transdermal.
The Company's balance sheet at March 31, 2010, revealed
$5,100,000 in total assets and $71,000,000 in total current
liabilities, for a total stockholders' deficit of $65,900,000.
The Company has implemented aggressive cost controls to conserve
its cash and better position the Company to realize the commercial
promise of its Eligen Technology. With its lower cash burn rate,
the Company anticipates that its existing capital resources,
without implementing cost reductions, raising additional capital,
or obtaining substantial cash inflows, will enable the Company to
continue operations through approximately June 2010 or earlier if
unforeseen events arise that negatively affect the company's
liquidity.
The Company's management said it believes there are reasonable
financing alternatives potentially available to the Company that
will enable it to meet its near term operating cash requirements.
FAIRPOINT COMMS: Bank Debt Trades at 27% Off in Secondary Market
----------------------------------------------------------------
Participations in a syndicated loan under which FairPoint
Communications, Inc., is a borrower traded in the secondary market
at 72.65 cents-on-the-dollar during the week ended Friday,
June 11, 2010, according to data compiled by Loan Pricing Corp.
and reported in The Wall Street Journal. This represents a drop
of 2.68 percentage points from the previous week, The Journal
relates. The Company pays 275 basis points above LIBOR to borrow
under the facility, which matures on March 31, 2015. Moody's has
withdrawn its rating, while Standard & Poor's has assigned a
default rating on the bank debt. The debt is one of the biggest
gainers and losers among 185 widely quoted syndicated loans with
five or more bids in secondary trading for the week ended Friday.
FairPoint Communications, Inc. (NYSE: FRP) --
http://www.fairpoint.com/-- is an industry-leading provider of
communications services to communities across the country.
FairPoint owns and operates local exchange companies in 18 states
offering advanced communications with a personal touch, including
local and long distance voice, data, Internet, television and
broadband services. FairPoint is traded on the New York Stock
Exchange under the symbols FRP and FRP.BC.
FairPoint and its affiliates filed for Chapter 11 on Oct. 26, 2009
(Bankr. D. Del. Case No. 09-16335). Rothschild Inc. is acting as
financial advisor for the Company; AlixPartners, LLP as the
restructuring advisor; and Paul, Hastings, Janofsky & Walker LLP
is the Company's counsel. BMC Group is claims and notice agent.
As of June 30, 2009, FairPoint reported $3.24 billion in total
assets, $321.41 million in total current liabilities, $2.91
billion in total long-term liabilities, and $1.23 million in total
stockholders' equity.
Bankruptcy Creditors' Service, Inc., publishes FairPoint
Communications Bankruptcy News. The newsletter tracks the Chapter
11 proceedings of FairPoint Communications Inc. and its debtor-
affiliates. (http://bankrupt.com/newsstand/or 215/945-7000)
FAIRPOINT COMMS: Committee Insists on Rule 2004 Exam on Verizon
---------------------------------------------------------------
The Official Committee of Unsecured Creditors for FairPoint
Communications counters Verizon Communications Inc.'s objection to
its Rule 2004 Motion requesting the production of certain
documents by Verizon.
Paul N. Silverstein, Esq., at Andrews Kurth LLP, in New York,
tells the Court that the Committee's rationale for its areas of
inquiry was explained to Verizon during an April 8, 2010
telephonic conference. The Committee reiterates that its
document requests is for the purpose of its investigation of
claims related to the Verizon-FairPoint Spin-off and the cash
transfers made by the Debtors to, and the related obligations the
Debtors incurred for the benefit of Verizon from 2007 to 2009.
Mr. Silverstein points out that the spectacular and rapid failure
of Verizon's Spin-Off of assets to the Debtors is not an isolated
occurrence. Verizon's Spin-Off of assets to Hawaiian Telcom
Communications, Inc. and Idearc Inc. also resulted in bankruptcy,
and Verizon's recent attempt to Spin-Off certain assets to
Frontier Communications, Inc., was stopped in its tracks by
regulators, he notes.
Against this backdrop, the Committee seeks documents going back
to a point in time when Verizon began plans to divest itself of
its revenue challenged or otherwise undesirable assets, including
the Spinco Assets, in order to understand Verizon's perceived
values of those assets.
Furthermore, because Verizon appears to have, in part, justified
the amount of cash it took out of the Spin-Off based on prior
investments in the Spinco Assets, the Committee says it seeks to
understand the magnitude of capital Verizon had invested in the
Spinco Assets in the five years leading up to the execution of
the transaction documents relating to the sale of the Spinco
Assets in January 2007.
Mr. Silverstein further contends that even if Verizon's claim
that the production of the requested documents would be unduly
burdensome and costly is valid, the Committee's need outweighs
the cost and burden. Verizon received over a billion dollars in
cash from the FairPoint Spin-Off, he avers, and that cash came
from proceeds of loans made to the Debtors by the very creditors
who will go largely unpaid in the Debtors' bankruptcy proceeding.
"The requested documents are necessary for the protection of the
Committee's legitimate interests," Mr. Silverstein stresses.
Mr. Silverstein further asserts that:
-- The document requests is not unduly broad or burdensome as
the Committee has reasonably tailored to documents "it
needs or could use;"
-- The Committee tailored its email production request to
garner relevant information; and
-- It is not necessary for the Committee to have standing to
ultimately bring a lawsuit against Verizon in order to have
standing to bring a motion under Rule 2004 of the Federal
Rules of Bankruptcy Procedure.
Verizon Files Surreply
In a subsequent filing, Verizon argues that the establishment of
the Litigation Trust under the Debtors' Modified Second Amended
Plan of Reorganization nullifies the factual predicate upon which
the Committee's Rule 2004 Motion was based.
With the advent of the Litigation Trust and upon Verizon's
opposition to the Rule 2004 Motion, the Committee must show good
cause that the Rule 2004 Motion is fulfilling its noted purpose
of "investigating the Verizon-Fairpoint Spin-off and potential
causes of action against Verizon," Darryl S. Laddin, Esq., at
Arnall Golden Gregory LLP, in Atlanta, Georgia, tells the Court.
The presence of the Litigation Trust raises serious questions
about whether the Committee's proposed Rule 2004 examinations
have "the free-floating purpose of discovery of assets which
would justify a 'tactically advantageous pre-proceeding' fishing
expedition," Mr. Laddin says.
Accordingly, Verizon asks Judge Lifland to direct the Committee
to explain how it has shown good cause to conduct a Rule 2004
exam in light of the creation of a Litigation Trust empowered to
pursue the very causes of action the Committee sought to
investigate via the Rule 2004 examination.
In the alternative, Verizon renews its request that the Rule 2004
Motion be denied.
Mr. Laddin notes that regardless of whether the Rule 2004 Motion
is granted, causes of action against Verizon will be investigated
by the Litigation Trustee and thus, there is no urgency to the
Committee's Motion for expeditious document production.
On the contrary, if the Committee's Motion is granted, the Rule
2004 examination would give the Committee a head start with the
documents it obtained, making it very difficult, if not
impossible, to ensure that Verizon would be fully protected by
the Federal Rules of Civil Procedure governing discovery upon an
adversary proceeding being commenced against it, Mr. Laddin
points out.
About FairPoint Communications
FairPoint Communications, Inc. (NYSE: FRP) --
http://www.fairpoint.com/-- is an industry-leading provider of
communications services to communities across the country.
FairPoint owns and operates local exchange companies in 18 states
offering advanced communications with a personal touch, including
local and long distance voice, data, Internet, television and
broadband services. FairPoint is traded on the New York Stock
Exchange under the symbols FRP and FRP.BC.
FairPoint and its affiliates filed for Chapter 11 on Oct. 26, 2009
(Bankr. D. Del. Case No. 09-16335). Rothschild Inc. is acting as
financial advisor for the Company; AlixPartners, LLP as the
restructuring advisor; and Paul, Hastings, Janofsky & Walker LLP
is the Company's counsel. BMC Group is claims and notice agent.
As of June 30, 2009, FairPoint reported $3.24 billion in total
assets, $321.41 million in total current liabilities,
$2.91 billion in total long-term liabilities, and $1.23 million in
total stockholders' equity.
Bankruptcy Creditors' Service, Inc., publishes FairPoint
Communications Bankruptcy News. The newsletter tracks the Chapter
11 proceedings of FairPoint Communications Inc. and its debtor-
affiliates. (http://bankrupt.com/newsstand/or 215/945-7000)
FAIRPOINT COMMS: Amends Quarterly Financials for 2009
-----------------------------------------------------
In three regulatory filings with the U.S. Securities and Exchange
Commission on April 30, 2010, FairPoint Communications, Inc.,
filed (i) a second amendment to its First Quarter 2009 Financial
Results ending March 31, 2009, (ii) an amendment to its Second
Quarter 2009 Financial Results ending June 30, 2009, and (iii) an
amendment to its Third Quarter 2009 Financial Results ending
September 30, 2009.
According to Lisa R. Hood, FairPoint's executive vice president
and chief financial officer, the amendments aim to reflect the
effect of an accounting error, a one-time non-operating loss
related to a disputed claim, and certain billing and other
adjustments.
The accounting error and the billing and other adjustments
resulted in an overstatement of revenues for the three months
ended March 31, 2009, of $12.3 million; an understatement of
operating expenses for the three months ended March 31, 2009, of
$0.1 million; and an overstatement of other income for the three
months ended March 31, 2009, of $9.6 million, according to Ms.
Hood.
The restatement of the Interim Condensed Consolidated Financial
Statements contained in the recent financial amendment resulted
in a reduction in net income of $13.5 million, net of income
taxes, for the three months ended March 31, 2009.
A full-text copy of FairPoint's Second Amended First Quarter 2009
Financial Results ending March 31 is available at the SEC site
at:
http://ResearchArchives.com/t/s?621a
Under its Amended Second Quarter Report ending June 30, 2010,
FairPoint depicts the accounting error and the billing and other
adjustments that resulted in an overstatement of revenue for the
three and six months ended June 30, 2009 of $14.8 million and
$27.2 million; an understatement of operating expenses for the
three and six months ended June 30, 2009 of $2.0 million and
$2.1 million; and an overstatement of other income for the six
months ended June 30, 2009 of $9.6 million.
This constituted an event of default under the credit facility
and the Company's interest rate swap agreements and may have
constituted an event of default under the notes. Thus, FairPoint
has classified its obligations under those debt instruments as
current liabilities as of June 30, 2009.
A full-text copy of FairPoint's Second Quarter 2009 Financial
Results is available at the SEC site at:
http://ResearchArchives.com/t/s?621b
Furthermore, in its Third Quarter 2009 Financial Results,
FairPoint reflects the accounting error and the billing and other
adjustments resulted in a $2.2 million understatement and
$25.0 million overstatement of revenues for the three and nine
months ended September 30, 2009; a $1.9 million overstatement and
$0.2 million understatement of operating expenses for the three
and nine months ended September 30, 2009; and an overstatement of
other income for the nine months ended September 30, 2009, of
$9.6 million.
The restatement of the interim condensed consolidated financial
statements contained in FairPoint's Amended Third Quarter 2009
Financial Results resulted in an increase in net income of
$2.1 million and a reduction in net income of $21.8 million, net
of income taxes, for the three months and nine months ended
September 30, 2009.
A full-text copy of FairPoint's Amended Third Quarter 2009
Financial Results is available at the SEC site at:
http://ResearchArchives.com/t/s?621c
About FairPoint Communications
FairPoint Communications, Inc. (NYSE: FRP) --
http://www.fairpoint.com/-- is an industry-leading provider of
communications services to communities across the country.
FairPoint owns and operates local exchange companies in 18 states
offering advanced communications with a personal touch, including
local and long distance voice, data, Internet, television and
broadband services. FairPoint is traded on the New York Stock
Exchange under the symbols FRP and FRP.BC.
FairPoint and its affiliates filed for Chapter 11 on Oct. 26, 2009
(Bankr. D. Del. Case No. 09-16335). Rothschild Inc. is acting as
financial advisor for the Company; AlixPartners, LLP as the
restructuring advisor; and Paul, Hastings, Janofsky & Walker LLP
is the Company's counsel. BMC Group is claims and notice agent.
As of June 30, 2009, FairPoint reported $3.24 billion in total
assets, $321.41 million in total current liabilities,
$2.91 billion in total long-term liabilities, and $1.23 million in
total stockholders' equity.
Bankruptcy Creditors' Service, Inc., publishes FairPoint
Communications Bankruptcy News. The newsletter tracks the Chapter
11 proceedings of FairPoint Communications Inc. and its debtor-
affiliates. (http://bankrupt.com/newsstand/or 215/945-7000)
FAIRVUE CLUB: Hearing on Disclosure Statement Set for June 22
-------------------------------------------------------------
The U.S. Bankruptcy Court for the Middle District of Tennessee
will consider at a hearing on June 22, 2010, at 9:00 a.m.,
approval of a Disclosure Statement explaining Fairvue Club
Properties, LLC, et al's proposed Plan of Reorganization. The
hearing will be held at Courtroom One, Customs House, 701
Broadway, Nashville, Tennessee. Objections were due June 1.
The Debtors will begin soliciting votes on the Plan following
approval of the adequacy of the information in the Disclosure
Statement.
According to the Disclosure Statement, the Plan provides for the
assets, liabilities and operations of the Debtors to continue in
the same entity.
On the effective date of the Plan, an unsecured creditors' fund
will be created for the benefit of all unsecured creditors in
Class 10 and 11. An agent for the benefit of all allowed
unsecured claims in Class 10 and 11, will hold a junior lien on
the real property and improvements of Fairvue and Foxland existing
as of the effective date of the Plan to secured the payments under
the Plan. The allowed claims within Class 10 and 11 will share
pro rata the amount generated from the net operating surplus of
the Reorganized Debtors.
Unsecured claims of Blueridge will not receive any distribution
under the Plan.
Interests in Fairvue and Foxland will terminate upon the effective
date of the Plan. New interests in Fairvue and Foxland will be
issued to Leon Moore Family Trust in satisfaction of its allowed
secured and unsecured claims.
A full-text copy of the Disclosure Statement is available for free
at http://bankrupt.com/misc/FairvueClub_DS.pdf
About Fairvue Club Properties
Gallatin, Tennessee-based Fairvue Club Properties, LLC, filed for
Chapter 11 (Bankr. M.D. Tenn. Case No. 09-13807) on December 1,
2009. William L. Norton, III, Esq., at Bradley Arant Boult
Cummings LLP, assists the Company in its restructuring effort.
The Company listed $10,000,001 to $50,000,000 in assets and
liabilities as of the Petition Date.
FARIBORZ NOURI: Case Summary & 20 Largest Unsecured Creditors
-------------------------------------------------------------
Joint Debtors: Fariborz I. Nouri
aka Issac Nouri
Elida Nouri
aka Elida Rivera, individually and as Trustee of
the 1999 Nouri Family Trust
4725 Azucena Road
Woodland Hills, CA 91364
Bankruptcy Case No.: 10-16867
Chapter 11 Petition Date: June 8, 2010
Court: U.S. Bankruptcy Court
Central District of California (San Fernando Valley)
Judge: Maureen Tighe
Debtor's Counsel: Robert M. Yaspan, Esq.
Law Offices of Robert M Yaspan
21700 Oxnard Street, Suite 1750
Woodland Hills, CA 91367
Tel: (818) 905-7711
Fax: (818) 501-7711
E-mail: ryaspan@yaspanlaw.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/cacb10-16867.pdf
The petition was signed by the Joint Debtors.
Debtor-affiliate that previously filed a separate Chapter 11
petition:
Entity Case No. Petition Date
------ -------- -------------
Fariborz Nouri 90-xxxxx 1990
FILI ENTERPRISES: Cash Collateral Hearing Continued until June 21
-----------------------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of California
has continued until June 21, 2010, at 11:00 a.m., the hearing on
Fili Enterprises, Inc.'s continued use of the prepetition lenders'
cash collateral.
The Court, in a fifth interim order, authorized the Debtor to use
up to $250,000 of the prepetition collateral until June 27, 2010.
As adequate protection for any diminution in value of the lenders'
collateral, the Debtors will grant the prepetition lenders
replacement liens in all assets of the Debtor.
San Diego, California-based Fili Enterprises, Inc. -- dba Daphne's
Greek Cafe, aka Daphne's Greek Express -- filed for Chapter 11
bankruptcy protection on January 11, 2010 (Bankr. S.D. Calif. Case
No. 10-00324). Brendan Collins, Esq., and Natasha Johnson, Esq.,
at DLA Piper LLP (US), assist the Company in its restructuring
effort. In its schedules of assets and liabilities, the Company
disclosed total assets of $16,723,356 and total liabilities of
$16,335,468.
FLINT TELECOM: Posts $8.5 Million Net Loss in Q3 Ended March 31
---------------------------------------------------------------
Flint Telecom Group, Inc., filed its quarterly report on Form
10-Q, reporting a net loss of $8.5 million on $5.0 million of
revenue for the three months ended March 31, 2010, compared with a
net loss of $1.2 million on $11.2 million of revenue for the same
period ended March 31, 2009.
The Company's balance sheet as of March 31, 2010, showed
$3.4 million in assets and $21.4 million of liabilities, for a
stockholders' deficit of $18.0 million.
As reported in the Troubled Company Reporter on October 19, 2009,
L.L. Bradford & Company, LLC, in Las Vegas, Nevada, expressed
substantial doubt about Flint Telecom, Inc.'s ability to continue
as a going concern after auditing the Company's consolidated
financial statements for the years ended June 30, 2009, and 2008.
The auditing firm reported that the Company has suffered losses
from operations, negative cash flows from operations and current
liabilities exceed current assets.
Flint had a net loss of $21.6 million and $10.9 million for the
nine months ended March 31, 2010, and 2009, respectively, negative
cash flow from operating activities of $2.0 million for the nine
months ended March 31, 2010, an accumulated of $42.7 million and a
working capital deficit of $18.6 million as of March 31, 2010.
Also, as of March 31, 2010, the Company had limited liquid and
capital resources. The Company is currently largely dependent
upon obtaining sufficient short and long term financing in order
to continue running our operations.
A full-text copy of the quarterly report is available for free at:
http://researcharchives.com/t/s?64aa
Overland Park, Kan.-based Flint Telecom Group, Inc. provides,
through four wholly-owned subsidiaries, next generation
turnkey turnkey voice, data and wireless services through partner
channels primarily in the United States.
FLOYD BARNES: Case Summary & 28 Largest Unsecured Creditors
-----------------------------------------------------------
Joint Debtors: E. Floyd Barnes
aka Sonny Barnes
Elmer Floyd Barnes
Donna L. Barnes
5700 Alabama Highway 71
Dutton, AL 35744
Bankruptcy Case No.: 10-82347
Chapter 11 Petition Date: June 9, 2010
Court: U.S. Bankruptcy Court
Northern District of Alabama (Decatur)
Judge: Jack Caddell
Debtor's Counsel: Robert D. McWhorter Jr., Esq.
Post Office Drawer 287
Gadsden, AL 35902
Tel: (256) 546-1656
E-mail: rdmcwhorter@bellsouth.net
Estimated Assets: $500,001 to $1,000,000
Estimated Debts: $1,000,001 to $10,000,000
A copy of the Joint Debtors' list of 28 largest unsecured
creditors filed together with the petition is available for
free at http://bankrupt.com/misc/alnb10-82347.pdf
The petition was signed by the Joint Debtors.
FORUM HEALTH: Ardent Health to Acquire Assets for $69.9 Million
---------------------------------------------------------------
Dan Hieb of Business Journal of Nashville reports that Ardent
Health Services reached an agreement to acquire Forum Health's
assets for $69.9 million and invest between $50 million and $70
million over five years on renovations, equipment and upgrades for
the Company's hospitals -- Northside Medical Center, Trumbull
Memorial Hospital and Hillside Rehabilitation Hospital.
The Company has proposed a July 15 auction to check for higher and
better bids for the business.
Forum Health and its affiliates filed for Chapter 11 protection on
March 16, 2009 (Bankr. N.D. Ohio Lead Case No. 09-40795). Paul W.
Linehan, Esq., and Shawn M Riley, Esq., at McDonald Hopkins LLC,
serve as lead counsel to the Debtors. The Debtors have also
tapped Michael A. Gallo, Esq. at Nadler Nadler & Burdman Co., LPA
as co- counsel; Kurtzman Carson Consultants LLC as claims,
noticing and balloting agent; and Huron Consulting Services LLC as
financial advisors. Alston & Bird LLP represents the official
committee of unsecured creditors formed in the Chapter 11 cases.
At the time of its filing, Forum Health estimated that it had
assets and debts both ranging from $100 million to $500 million.
FREESCALE SEMICON: Bank Debt Trades at 13% Off in Secondary Market
------------------------------------------------------------------
Participations in a syndicated loan under which Freescale
Semiconductor, Inc., is a borrower traded in the secondary market
at 87.04 cents-on-the-dollar during the week ended Friday,
June 11, 2010, according to data compiled by Loan Pricing Corp.
and reported in The Wall Street Journal. This represents a drop
of 0.79 percentage points from the previous week, The Journal
relates. The Company pays 425 basis points above LIBOR to borrow
under the facility. The bank loan matures on Feb. 16, 2016, and
carries Moody's B2 rating and Standard & Poor's B- rating. The
debt is one of the biggest gainers and losers among 185 widely
quoted syndicated loans with five or more bids in secondary
trading for the week ended Friday.
Freescale Semiconductor, Inc. -- http://www.freescale.com/-- once
Motorola's Semiconductor Products Sector, is one of the oldest and
most diverse makers of microchips in the world. It produces many
different kinds of chips for use in automobiles, computers,
industrial equipment, wireless communications and networking
equipment, and other applications. The company's global client
roster includes such blue-chip companies as Alcatel-Lucent, Bosch,
Cisco Systems, Fujitsu, Hewlett-Packard, QUALCOMM, and Siemens, as
well as former parent Motorola. Freescale nets about half of its
sales from the Asia/Pacific region. The Blackstone Group, The
Carlyle Group, Permira Advisers, and TPG Capital own the company.
FREESCALE SEMICON: To Pay Interest on Senior Notes in Cash
----------------------------------------------------------
Freescale Semiconductor Inc. has elected to pay the interest in
cash on its outstanding 9 1/8%/9 7/8% Senior PIK-Election Notes
due 2014 for the period ending December 15, 2010.
In connection with this election, on June 9, 2010, the Company
delivered notice to The Bank of New York Mellon formerly The Bank
of New York, in its capacity as trustee under the Indenture
governing the PIK Notes, that, with respect to the interest that
will be due on such notes on the December 15, 2010 interest
payment date, the Company will make such interest payment by
paying cash at the cash interest rate of 9 1/8%.
Freescale Semiconductor, Inc. -- http://www.freescale.com/-- once
Motorola's Semiconductor Products Sector, is one of the oldest and
most diverse makers of microchips in the world. It produces many
different kinds of chips for use in automobiles, computers,
industrial equipment, wireless communications and networking
equipment, and other applications. The company's global client
roster includes such blue-chip companies as Alcatel-Lucent, Bosch,
Cisco Systems, Fujitsu, Hewlett-Packard, QUALCOMM, and Siemens, as
well as former parent Motorola. Freescale nets about half of its
sales from the Asia/Pacific region. The Blackstone Group, The
Carlyle Group, Permira Advisers, and TPG Capital own the company.
FX LUXURY: Proofs of Claim Must Be Filed by June 30
---------------------------------------------------
The U.S. Bankruptcy Court for the District of Nevada granted FX
Luxury Las Vegas I, LLC's request to fix June 30, 2010, as the
deadline by which creditors must file their proofs of claim on
account of claims arising prior to Apr. 21, 2010. All proofs of
claim and requests for payment of administrative expense claims,
including Professional Fees, must be filed with the Clerk of the
United States Bankruptcy Court for the District of Nevada, and
copies must be served on:
-- the Debtor:
FX Real Estate and Entertainment Inc.
Attention: Mitchell Nelson
650 Madison Avenue
New York, NY 10022
E-mail: mitchell.nelson@flagluxury.com
- and -
Brett A. Axelrod, Esq.
FOX ROTHSCHILD LLP
3800 Howard Hughes Pkwy, Ste. 500
Las Vegas, NV 89169
E-mail: baxelrod@foxrothschild.com
-- the First Lien Agent:
Landesbank Baden-Wrttemberg New York Branch
Attention: Robert Dowling
280 Park Avenue, 31st Floor West Building
New York, NY 10017
E-mail: robert.dowling@lbbwus.com
- and -
Robert W. Fagiola, Esq.
Andrew V. Tenzer, Esq.
Randall L. Martin, Esq.
SHEARMAN & STERLING LLP
599 Lexington Avenue
New York, NY 10022
E-mail: rfagiola@shearman.com
atenzer@shearman.com
randall.martin@shearman.com
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 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 disclosed $139,636,791 in assets and $492,568,036 in
debts at the time of the filing.
As reported in the Troubled Company Reporter on May 11, 2010, the
Debtor proposed a liquidating Chapter 11 plan that will return
nothing to unsecured creditors. As reported in the Troubled
Company Reporter on June 7, 2010, the Debtor proposed to sell
substantially all of its assets, but the Honorable Bruce A.
Markell rejected the Debtor's proposed sale procedures. The
Debtor's second-lien creditors have asked Judge Markell to appoint
a Chapter 11 trustee and terminate the Debtor's exclusive period.
GARLOCK SEALING: Wants to Grant Admin. Status to InterCo. Claims
----------------------------------------------------------------
Garlock Sealing Technologies LLC and its debtor-affiliates
maintain business relationships with each other and their non-
debtor affiliates and, as a result, numerous intercompany claims
arise that reflect intercompany receivables and payables made in
the ordinary course of the Debtors' businesses. Those
intercompany claims are settled as part of the Debtors' Cash
Management System. The Debtors maintain records of all fund
transfers and can ascertain, trace and account for Intercompany
Transactions.
If the Intercompany Transactions are discontinued, the Cash
Management System and related administrative controls would be
disrupted to the detriment of the Debtors, Albert F. Durham,
Esq., at Rayburn Cooper & Durham, P.A., in Charlotte, North
Carolina, emphasizes.
To ensure that each individual Debtor can continue to enter into
Intercompany Transactions in the ordinary course of business, the
Debtors sought and obtained a Court order according administrative
priority to all Intercompany Claims against a Debtor by another
Debtor or among non-Debtor affiliates pursuant to Sections
503(b)(1) and 364(b) of the Bankruptcy Code.
In addition, the Debtors and their non-debtor affiliates and
subsidiaries engage in certain usual and customary business
practices in the ordinary course of their businesses through
various intercompany relationships among the Debtors and non-
debtors. The Debtors believe that continued performance under
the Intercompany Arrangements is not only important to their
successful restructuring, but is absolutely integral to ensure
their ability to operate their businesses as debtors-in-
possession, Mr. Durham says.
For this reason, the Debtors sought and obtained the Court's
authority to continue performing under the Intercompany
Arrangements in the ordinary course of business without need for
further Court order.
About Garlock Sealing
Headquartered in Palmyra, NY, Garlock Sealing Technologies LLC is
an EnPro Industries, Inc. company (NYSE: NPO). For more than a
century, Garlock has been helping customers efficiently seal the
toughest process fluids in the most demanding applications.
On June 5, Garlock filed a voluntary Chapter 11 petition (Bankr.
W. D. N.C. Case No. 10-31607) in Charlotte to establish a trust to
resolve all current and future asbestos claims against Garlock
under Section 524(g) of the U.S. Bankruptcy Code. The Debtor
listed $500,000,001 to $1,000,000,000 in assets and $100,000,001
to $500,000,000 in debts as of the Petition Date. Affiliates The
Anchor Packing Company and Garrison Litigation Management Group,
Ltd., also filed for bankruptcy.
The filing covers only Garlock operations in Palmyra, New York and
Houston, Texas. Garlock Rubber Technologies, Garlock Helicoflex,
Pikotek, Technetics, Garlock Europe and Garlock operations in
Canada, Mexico or Australia are not affected by the filing, nor is
EnPro Industries or any other EnPro operating subsidiary.
Albert F. Durham, Esq., at Rayburn Cooper & Durham, P.A.,
represents the Debtor in its Chapter 11 effort. Garland S.
Cassada, Esq., at Robinson Bradshaw & Hinson, serves as counsel
for Asbestos matters.
Bankruptcy Creditors' Service, Inc., publishes Garlock Sealing
Bankruptcy News. The newsletter tracks the chapter 11 proceeding
undertaken by Garlock Sealing Technologies LLC and its various
affiliates. (http://bankrupt.com/newsstand/or 215/945-7000)
GARLOCK SEALING: Proposes to Continue Parent Services Deals
-----------------------------------------------------------
In the ordinary course of business, Garlock Sealing Technologies
LLC and its debtor-affiliates seek continue to have separate
management from EnPro Industries, Inc., and Coltec Industries Inc.
-- the Parent.
As of June 1, 2010, Garlock Sealing Technologies LLC and Garrison
Litigation Management Group Ltd. each entered into separate
services agreement with the Parent in order to formalize their
relationships with the Parent. The salient terms of the Services
Agreements are:
(1) Services performed by employees of the Parent. The Parent
provides certain operation and financial process
engineering and management, information technology, human
resources, supply chain management, legal, strategic
planning and business development, environmental health and
safety, taxation and treasury and cash management functions
to Garlock and Garrison on an as-needed basis.
(2) Insurance Coverage. Almost all of Garlock and Garrison's
insurance needs are met through coverage under certain of
the Parent's insurance policies. The Parent pays the
premiums for, or, as applicable, the claims under, the
Insurance Coverages and then charges a portion of the
actual cost of each coverage to its subsidiaries, including
Garlock.
(3) Certain Payroll and Benefits. The Parent pays, on Garlock
and Garrison's behalf, certain payroll and benefit
obligations of the Debtors. The Payments fall into these
categories:
-- The parent makes payments directly to third-party
providers for certain payroll obligations of the
Debtors; contributions to retirement savings and
obligations of the Debtors arising from certain employee
benefit plans sponsored by the Debtors for their
employee.
-- The parent offers certain employee benefit plans in
which eligible employees of Garlock and Garrison are
permitted to participate. These plans include health
insurance plans, life insurance, long-term disability
insurance, accidental death and dismemberment insurance,
workers compensation insurance, 401(k) plans, defined
benefit plans, deferred compensation plans, bonus and
incentive plans and employee assistance plans.
A full-text copy of the Services Agreements is available for free
at http://bankrupt.com/misc/Garlock_ServicesPacts.pdf
Garlock also provides Garrison with a lien of credit up to
$200 million for working capital purposes pursuant to a
$200 million Revolving Note between Garlock and Garrison. Under
the Garrison Services Agreement, Garrison will accrue liability to
the Parent for an annual charge of $100,000 for the services under
the Insurance Coverages and the Payments made by the Parent on
behalf of Garrison during the calendar year. Under the Garlock
Services Agreement, Garlock will accrue liability for amounts due
to the Parent for the Garlock Services, Insurance Coverages and
Payments provided by the Parent during the calendar year.
Garlock pays the Parent through certain procedures and does not
foresee any likely scenario in which it would be required to pay
cash to the Parent for any annual charge under the Services
Agreement.
John R. Miller, Jr., Esq., at Rayburn Cooper & Durham, P.A., in
Charlotte, North Carolina, asserts that the Debtors rely on the
Parent for the provision of the Services, the Insurance Coverages
and the Payments. The uninterrupted continuation of the Services
provided to the Debtors under the Services Agreements is critical
for a smooth transition into the Debtors' Chapter 11 cases, he
maintains.
At the Debtors' behest, the Court authorizes the Debtors, on an
interim basis, to perform under the Services Agreement until
August 9, 2010, subject to entry of a final order granting the
Services Agreements Motion.
A final hearing on the Services Agreements Motion will be held on
June 30, 2010.
About Garlock Sealing
Headquartered in Palmyra, NY, Garlock Sealing Technologies LLC is
an EnPro Industries, Inc. company (NYSE: NPO). For more than a
century, Garlock has been helping customers efficiently seal the
toughest process fluids in the most demanding applications.
On June 5, Garlock filed a voluntary Chapter 11 petition (Bankr.
W. D. N.C. Case No. 10-31607) in Charlotte to establish a trust to
resolve all current and future asbestos claims against Garlock
under Section 524(g) of the U.S. Bankruptcy Code. The Debtor
listed $500,000,001 to $1,000,000,000 in assets and $100,000,001
to $500,000,000 in debts as of the Petition Date. Affiliates The
Anchor Packing Company and Garrison Litigation Management Group,
Ltd., also filed for bankruptcy.
The filing covers only Garlock operations in Palmyra, New York and
Houston, Texas. Garlock Rubber Technologies, Garlock Helicoflex,
Pikotek, Technetics, Garlock Europe and Garlock operations in
Canada, Mexico or Australia are not affected by the filing, nor is
EnPro Industries or any other EnPro operating subsidiary.
Albert F. Durham, Esq., at Rayburn Cooper & Durham, P.A.,
represents the Debtor in its Chapter 11 effort. Garland S.
Cassada, Esq., at Robinson Bradshaw & Hinson, serves as counsel
for Asbestos matters.
Bankruptcy Creditors' Service, Inc., publishes Garlock Sealing
Bankruptcy News. The newsletter tracks the chapter 11 proceeding
undertaken by Garlock Sealing Technologies LLC and its various
affiliates. (http://bankrupt.com/newsstand/or 215/945-7000)
GARLOCK SEALING: Intends to Honor Prepetition Employee Obligations
------------------------------------------------------------------
Garlock Sealing Technologies LLC employs a total of about 600
people at its operating facilities in Houston, Texas and Palmyra,
New York, as well as commissioned sales people throughout the
United States, including about 350 hourly Employees and 250
salaried Employees; three of these Employees work part-time while
the rest are full-time employees.
Garrison Litigation Management Group, Ltd., employs about 11 full-
time salaried people in its headquarters in Rochester, New York.
As of the Petition Date, The Anchor Packing Company has no active
employees.
At the Debtors' behest, the Court authorizes the Debtors to
continue payroll and payroll related practices, including payment
of certain prepetition wages, salaries, vacation pay and other
compensation and amounts withheld from that compensation:
Employee Obligation Amount
------------------- ------
Vacation Pay $1,294,000
Wages 254,400
Salaries 85,900
Sick Leave 43,400
Paid Holidays 11,725
In addition, EnPro Industries, Inc., and Coltec Industries, Inc.
-- the Parent -- entered into two services agreements entered
separately by Garlock and Garrison.
Under the Services Agreements, the Debtors and the Parent permit
eligible Employees to participate in certain employee benefit
plans including medical plans, dental plans, vision plan, life
insurance, supplemental life insurance, long-and short-term
disability plans, and accidental death and dismemberment plans.
The Debtors are charged premium costs and expenses either monthly
or annually under relevant employee benefit plans:
Employee Benefit Plan Cost per Month
--------------------- --------------
Workers' Compensation Plan $249,600
Excellus Blue Cross Health Plan 206,000
Retiree Medical Plans 55,000
Health Insurance Plan 41,000
Dental Insurance Plan 34,000
Employee Assistance Plan 9,000
Life Insurance Plan 7,000
Vision Insurance Plan 2,000
Supplemental Life Insurance Plan 6,000
New York Short-Term Disability 1,000
Accidental Death & Dismemberment 1,500
In addition, the Debtors estimate that they are liable for about
42 unpaid workers' compensation claims totaling $1,997,800.
The Debtors also maintain a Salaried 401(k) Plan, Hourly 401(k)
Plan, Retirement Plan for Employees of EnPro Industries, Inc.,
Garlock's Pension Plan for Hourly Employees, Deferred
Compensation Plan, Company Leased Vehicles Tuition Assistance,
Relocation Program, and International Travel & Accident Policy.
Thus, at the Debtors' behest, the Court authorizes the Debtors to
pay any and all obligations, including those obligations to the
Parent relating to the Employee Benefits and pay all costs
incident to the payment of the Employee Obligations.
The Debtors owe certain of their Employees for reimbursement of
business-related expenses, including travel, meals and similar
charges. The Debtors' typical monthly reimbursements for
business-related expenses owed to management personnel are
$104,500. Accordingly, the Debtors are authorized to pay any of
those reimbursements, including any payments to the Parent for
administrative fees charged by "Concur Technologies" related to
services provided to the Debtors.
The Court also authorized applicable banks and other financial
institutions to receive, process, honor and pay all prepetition
checks and transfers drawn on the Debtors' accounts to satisfy the
Employee Obligations.
Shelley K. Abel, Esq., at Rayburn Cooper & Durham, P.A., in
Charlotte, North Carolina, told that Court that without the
continued, dedicated service of the Employees, the Debtors' goal
to pay all creditors the full amount of their allowed claims will
not be possible.
About Garlock Sealing
Headquartered in Palmyra, NY, Garlock Sealing Technologies LLC is
an EnPro Industries, Inc. company (NYSE: NPO). For more than a
century, Garlock has been helping customers efficiently seal the
toughest process fluids in the most demanding applications.
On June 5, Garlock filed a voluntary Chapter 11 petition (Bankr.
W. D. N.C. Case No. 10-31607) in Charlotte to establish a trust to
resolve all current and future asbestos claims against Garlock
under Section 524(g) of the U.S. Bankruptcy Code. The Debtor
listed $500,000,001 to $1,000,000,000 in assets and $100,000,001
to $500,000,000 in debts as of the Petition Date. Affiliates The
Anchor Packing Company and Garrison Litigation Management Group,
Ltd., also filed for bankruptcy.
The filing covers only Garlock operations in Palmyra, New York and
Houston, Texas. Garlock Rubber Technologies, Garlock Helicoflex,
Pikotek, Technetics, Garlock Europe and Garlock operations in
Canada, Mexico or Australia are not affected by the filing, nor is
EnPro Industries or any other EnPro operating subsidiary.
Albert F. Durham, Esq., at Rayburn Cooper & Durham, P.A.,
represents the Debtor in its Chapter 11 effort. Garland S.
Cassada, Esq., at Robinson Bradshaw & Hinson, serves as counsel
for Asbestos matters.
Bankruptcy Creditors' Service, Inc., publishes Garlock Sealing
Bankruptcy News. The newsletter tracks the chapter 11 proceeding
undertaken by Garlock Sealing Technologies LLC and its various
affiliates. (http://bankrupt.com/newsstand/or 215/945-7000)
GENERAL GROWTH: Clerk Reports on Claim Transfers for May
--------------------------------------------------------
The Clerk of Court recorded these entities' transfers of claims
Against General Growth Properties and its units totaling $31,968,
for the month of May 2010.
Transferor Transferee Claim No. Claim Amt.
---------- ---------- -------- ----------
Ken Griffin Plumbing & Sierra Liquidity - $1,056
Heating, Inc. Fund, LLC
Pro Clean Maintenance Liquidity Solutions, 416 1,450
Inc. Inc.
Pro Clean Maintenance Liquidity Solutions, 1828 1,450
Inc. Inc.
Eagle Financial LLC Creditor Liquidity, LP - 6,972
Southwind Electric, Inc. Sierra Liquidity Fund - 6,041
LLC
Southwind Electric, Inc. Sierra Liquidity Fund 182 to 5,549
LLC 188
David A. Miskin US Debt Recovery III, 102 9,450
LP
Mr. Miskin also transferred scheduled Claim No. 63-f-2-19992 for
$13,300 to US Debt Recovery.
About General Growth
Based in Chicago, Illinois, General Growth Properties, Inc. --
http://www.ggp.com/-- is the second-largest U.S. mall owner,
having ownership interest in, or management responsibility for,
more than 200 regional shopping malls in 44 states, as well as
ownership in master planned community developments and commercial
office buildings. The Company's portfolio totals roughly
200 million square feet of retail space and includes more than
24,000 retail stores nationwide. General Growth is a self-
administered and self-managed real estate investment trust. The
Company's common stock is trading in the pink sheets under the
symbol GGWPQ.
General Growth Properties Inc. and its affiliates filed for
Chapter 11 on April 16, 2009 (Bankr. S.D.N.Y., Case No.
09-11977). Marcia L. Goldstein, Esq., Gary T. Holtzer, Esq.,
Adam P. Strochak, Esq., and Stephen A. Youngman, Esq., at Weil,
Gotshal & Manges LLP, have been tapped as bankruptcy counsel.
Kirkland & Ellis LLP is co-counsel. Kurtzman Carson Consultants
LLC has been engaged as claims agent. The Company also hired
AlixPartners LLP as financial advisor and Miller Buckfire Co. LLC,
as investment bankers. The Debtors disclosed $29,557,330,000 in
assets and $27,293,734,000 in debts as of December 31, 2008.
Bankruptcy Creditors' Service, Inc., publishes General Growth
Bankruptcy News. The newsletter tracks the Chapter 11 proceeding
undertaken by General Growth Properties Inc. and its various
affiliates. (http://bankrupt.com/newsstand/or 215/945-7000)
GENERAL MARITIME: Moody's Reviews 'B1' Corporate Family Rating
--------------------------------------------------------------
Moody's Investors Service placed the ratings of General Maritime
Corporation, on review for possible downgrade following the
company's announcement on June 9, 2010, that it has agreed to
acquire seven crude carriers at a cost of approximately
$620 million. Ratings on review include: B1 Corporate Family, B1
Probability of Default, B3 senior unsecured, and SGL-3 Speculative
Grade Liquidity. According to the announcement, the completion of
the vessel purchases is subject to GenMar's ability to arrange
adequate financing and the company's receipt of an amendment of
its existing bank credit facility to accommodate the incurrence of
additional indebtedness associated with the planned transaction.
The purchase agreements require that GenMar complete the financing
conditions, which include an equity issuance, by June 24, 2010.
"We believe that the expansion of the fleet, including in the
higher operating leverage, Very Large Crude Carrier segment, could
strengthen GenMar's business profile over time," said Moody's
Shipping Analyst Jonathan Root. "However, operating risk and
credit risk will increase in the near term." GenMar will need to
demonstrate the ability to sustain strong utilization of the
VLCC's, while competing against larger entrenched competitors.
Debt will meaningfully increase. Credit metrics will likely
remain pressured through 2011 as freight rates across most vessel
classes could remain below their long-run historical averages
during this period.
Moody's review will include an assessment of how the financing
structure of the transaction affects GenMar's capital structure
and the prospects for meeting all of the financing conditions
within the specified time frame. Moody's will also consider the
company's plans for trading the acquired vessels, the
contributions of the incremental vessels to consolidated operating
results and how the potential benefits to the business profile and
market position compare against the scope and duration of
potential stress on the company's credit metrics profile. Moody's
will also consider how the transaction affects forecasted cash
balances and availability under revolving credit facilities.
The last rating action on GenMar was the assignment of first-time
ratings to the company on October 30, 2009, which included the B1
Corporate Family Rating and B3 senior unsecured bond rating.
On Review for Possible Downgrade:
Issuer: General Maritime Corporation
-- Probability of Default Rating, Placed on Review for Possible
Downgrade, currently B1
-- Speculative Grade Liquidity Rating, Placed on Review for
Possible Downgrade, currently SGL-3
-- Corporate Family Rating, Placed on Review for Possible
Downgrade, currently B1
-- Senior Unsecured Regular Bond/Debenture, Placed on Review for
Possible Downgrade, currently B3, LGD5, 88%
Outlook Actions:
Issuer: General Maritime Corporation
-- Outlook, Changed To Rating Under Review From Stable
General Maritime Corporation, a Marshall Islands corporation with
headquarters in New York, New York, is a leading owner and
operator of crude and petroleum carriers.
GENERAL MARITIME: S&P Downgrades Corporate Credit Rating to 'B'
---------------------------------------------------------------
Standard & Poor's Ratings Services lowered its long-term corporate
rating on New York City-based General Maritime Corp. to 'B' from
'B+'. At the same time, S&P lowered its rating on the company's
senior unsecured notes to 'CCC+', two notches below the new
corporate credit rating. The '6' recovery rating on the notes
remains unchanged, indicating S&P's expectation that lenders would
receive a negligible (0% to 10%) recovery in a payment default
scenario. S&P is removing all ratings from CreditWatch, where S&P
placed them with negative implications on April 5, 2010. The
outlook is negative.
"The downgrade of General Maritime reflects the company's
constrained liquidity, due to prolonged pressures on earnings and
cash flow from reduced tanker rates and significantly higher cash
interest payments from refinancings and repricing of its revolving
line of credit," said Standard & Poor's credit analyst Funmi
Afonja. "The ratings and outlook take into consideration the
expected moderate deleveraging from the proposed acquisition of
seven vessels announced yesterday, and recent tanker rate
increases (although still well below historical highs), which S&P
believes should help improve earnings and cash flow," she
continued. Still, S&P feels that the company's constrained
liquidity and limited financial covenant cushion, despite recent
amendments, will cause the company's financial profile to remain
weak over the next year.
The negative outlook reflects S&P's concerns over the company's
constrained liquidity and the potential for narrower cushion under
the company's amended financial covenants. S&P could lower its
ratings further if tanker rates do not recover to the levels
expected, causing lower earnings and cash flow, increased
liquidity constraints, or higher chances of a financial covenant
breach. S&P could also lower ratings if reduced earnings caused
funds flow to total debt to consistently fall to the high-single-
digit percent area. S&P could revise the outlook to stable if
more favorable than expected tanker rates or reduced debt cause
the covenant cushion to increase materially or credit metrics to
strengthen. It is unlikely S&P would raise the ratings over the
next year, given the company's weak financial profile and
significant upcoming debt maturities.
GENERAL MOTORS: Berlin Rejects GM's EUR1.1 Bil. Opel Aid Request
----------------------------------------------------------------
The German Government junked a request by General Motors Company
for EUR1.1 billion or US$1.3 billion in federal government
assistance for its European unit Adam Opel GmbH.
GM has been asking the German government, specifically Berlin and
German states of North Rhine-Westphalia, Hesse, Rhineland-
Palatinate and Thuringia, to jointly guarantee bank loans of
EUR1.1 billion. With the state regions with Opel plants ready to
pledge assistance, GM seeks for a last EUR400 million to fund its
EUR3.7 billion restructuring of Opel and the UK's Vauxhall,
according to The Financial Times.
The panel assessing GM's aid -- comprised of outside economic
experts and former German business leaders -- was "very critical"
Mr. Bruderle said at a press briefing on June 8, 2010, reported
The Wall Street Journal.
Rainer Bruderle, the Free Democrat economics minister for Germany,
noted that GM has US$10 billion in cash -- enough to pay for the
Opel restructuring. After European governments compelled the
Company to up its EUR600 million in equity that it originally
pledged, GM tripled its contribution in March 2010.
German chancellor Angela Merkel, a Christian Democrat, is meeting
the state premiers of the four regions to discuss "other ways of
helping Opel," noting that "it's clear that there are different
opinions about this question in the coalition," Ms. Merkel told
The FT.
According to GM European operations head Nick Reilly, Opel
expected to get "at least 25 percent of the requested
EUR1.1 billion" from the German regions. Mr. Reilly noted that he
still planned "to maintain the major elements" of the
restructuring, the report added.
Opel Labor Group Criticizes Decision
GM Europe's labor chief Klaus Franz called the Berlin's refusal to
assist Opel "disgraceful," and applauded the four regional states
that pledged aid. "This gives us a basis to procure the missing
sum for investments into new products and technologies from
international capital markets," he said in a press statement,
according to reports.
Mr. Franz said that while Opel doesn't need taxpayers' money to
survive, it does need state guarantees. He pointed out that "at
least two German factories are at risk" without guarantees from
the German government. "The American government is not prepared
to subsidize jobs in Europe and make funds available for Opel's
restructuring," the statement said.
He noted, however, that the UK, Spain, Austria, Poland and Hungary
would give EUR800 million in aid.
About General Motors
With its global headquarters in Detroit, Michigan, General Motors
Company -- http://www.gm.com/-- is one of the world's largest
automakers. GM employs 207,000 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 the following brands:
Buick, Cadillac, Chevrolet, FAW, GMC, Daewoo, Holden, Opel,
Vauxhall and Wuling. GM's largest national market is the United
States, followed by China, Brazil, Germany, the United Kingdom,
Canada, and Italy. 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 March 31, 2010, GM had $136.021 billion in total assets,
total liabilities of $105.970 billion and preferred stock of
$6.998 billion, and non-controlling interests of $814 million,
resulting in total equity of $23.053 billion.
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: Court Approves Revision of Brownfield Rates
-----------------------------------------------------------
At Motors Liquidation Co.'s behest, Judge Gerber approved the
revised rates of Brownfield Partners, LLC, nunc pro tunc to
January 1, 2010:
Revised Standard Original Standard
Staff Hourly Rates Hourly Rates
----- ---------------- -----------------
Partner $330 $275
Partner $300 $250
Sr. Associate $264 $220
Associate $198 $165
Staff Associate $174 $145
Administrative/Clerical $66 $55
In a declaration filed with the Court, Ted Stenger, executive vice
president of Motors Liquidation Company, notes that the revised
hourly rates requested by Brownfield Partners were warranted, as
"MLC's demands and requirements have been rigorous, and Brownfield
Partners has answered with an outstanding performance."
According to Mr. Stenger, Brownfield Partners has devoted the
resources of its senior partners to the Debtors, noting that one
of these partners, David McMurtry, has been devoted to MLC's
efforts on a "24/7 basis."
Mr. Stenger confirms that he personally negotiated the Revised
Rates directly with Stuart Miner, managing partner at Brownfield
Partners, and assessed the requested Revised Rates to determine
whether they reflected appropriate market rates by comparing them
to (i) the rates of the other environmental professionals retained
by the Debtors, LFR, Inc., and The Claro Group, LLC, (ii) the
rates charged by environmental specialists from FTI Consulting,
Inc., the financial advisor to the Statutory Committee of
Unsecured Creditors, and (iii) the rates charged by professionals
providing similar environmental services in other Chapter 11
cases.
"I concluded the Revised Rates were at the low end of, if not
below, market rates, and given Brownfield Partners' expertise and
service capability, the Revise Rates were favorable to MLC," Mr.
Stenger says.
Mr. Stenger adds that he has discussed the Revised Rates, his
assessment process, and his conclusions with the Fee Examiner in
the Debtors' Chapter 11 cases. "The Fee Examiner indicated it
will accept this Declaration as evidence that the Revised Rates
are reasonable and appropriate and will not object to the Revised
Rates," according to Mr. Stenger.
About General Motors
With its global headquarters in Detroit, Michigan, General Motors
Company -- http://www.gm.com/-- is one of the world's largest
automakers. GM employs 207,000 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 the following brands:
Buick, Cadillac, Chevrolet, FAW, GMC, Daewoo, Holden, Opel,
Vauxhall and Wuling. GM's largest national market is the United
States, followed by China, Brazil, Germany, the United Kingdom,
Canada, and Italy. 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 March 31, 2010, GM had $136.021 billion in total assets,
total liabilities of $105.970 billion and preferred stock of
$6.998 billion, and non-controlling interests of $814 million,
resulting in total equity of $23.053 billion.
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: JPMorgan Asks for Dismissal of Committee Suit
-------------------------------------------------------------
It is undisputed that General Motors Corporation paid off in
October 2008 a $150 million outstanding loan to JPMorgan Chase
Bank, N.A., and a syndicate of lenders that related to the
synthetic lease financing transaction, John M. Callagy, Esq., at
Kelley Drye & Warren LLP, in New York, maintained, on behalf of
JPMorgan. Mr. Callagy added that GM's counsel in that transaction
-- Mayer Brown LLP -- "erroneously filed" the termination
statement relating to the $1.5 billion term loan agreement dated
November 29, 2006, as amended, which had been put in place five
years after the initiation of the synthetic lease transaction.
As previously reported, the Official Committee of Unsecured
Creditors filed an adversary proceeding to challenge the lien
securing the Term Loan Agreement among GM, Saturn Corporation, and
JPMorgan, as administrative agent and lender. Under the Term Loan
Agreement, a group of 415 lenders advanced $1.5 billion in loan
proceeds to certain of the Debtors, which loans are secured by a
first-priority lien on certain assets of GM.
In its Complaint, the Creditors' Committee alleges that the first
priority secured interests of JPMorgan and a syndicate of
financial institutions securing the obligation under a the Term
Loan Agreement, were eliminated when a single termination
statement relating to the Term Loan was filed with the Delaware
Secretary of State on October 30, 2008. Accordingly, the
Committee seeks to avoid and recover the postpetition repayment of
over $1.4 billion made to JPMorgan and the Term Loan lenders out
of the approximately $33 billion in postpetition financing funded
by The United States Department of Treasury, as well as certain
prepetition payments as alleged preference payments.
The "erroneous filing" was completely contrary to the limited
authority given to GM and its counsel to file termination
statements relating only to the pay-off of the synthetic Lease
Deal, Mr. Callagy noted.
These undisputed facts conclusively establish that the filing of
the Termination Statement was not authorized by JPMorgan, Mr.
Callagy averred.
For the reasons, stated, JPMorgan asks the Court to enter a
summary judgment in the Adversary Proceeding. "JPMorgan continues
to believe [a] summary judgment motion is appropriate because no
issues of material fact exist regarding the threshold legal issue
of whether GM's counsel's filing of a termination statement in
October 2008 with respect to an unrelated Term Loan was
authorized. As a matter of law, it was not," according to Mr.
Callagy.
Mr. Callagy contended that JPMorgan has consulted with counsel
with to the Creditors' Committee, which believes that summary
judgment motions remain appropriate.
Creditors' Committee Responds
On behalf of the Committee, Eric B. Fisher, Esq., at Butzel Long,
A Professional Corporation, in New York, said in a supplemental
pre-motion letter that while the Committee and JPMorgan advance
diametrically opposed legal conclusions, both parties continue to
agree that the key issue in the case -- the legal effectiveness of
the Termination Statement filed in October 2008 -- is suitable to
resolution on summary judgment.
Both parties also agree that resolution of this key legal issue
before the next phase of discovery will serve the interests of
judicial economy and avoid burdening Old GM's estate with the
complexity and costs attendant to multi-party litigation, Mr.
Fisher said.
"We agree . . . that the question of whether JPMorgan authorized
the Termination Statement's filing is the key legal issue.
However, the issue of whether the filing of the Termination
Statement was authorized is not a close question. It is clear
that the Termination Statement was authorized by JPMorgan," Mr.
Fisher noted.
JPMorgan incorrectly conflates the concepts of mistake and
authorization, Mr. Fisher argued. Those facts establish that
JPMorgan authorized the filing of the Termination Statement, even
if it did so by mistake, Mr. Fisher emphasized.
Parties Stipulate
The Creditors' Committee and JPMorgan entered Court-approved
stipulation modifying the Stipulated Scheduling Order dated
October 6, 2009, by, among other things, extending up to May 7,
2010, the deadline to submit responses to dispositive motions by
the parties.
About General Motors
With its global headquarters in Detroit, Michigan, General Motors
Company -- http://www.gm.com/-- is one of the world's largest
automakers. GM employs 207,000 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 the following brands:
Buick, Cadillac, Chevrolet, FAW, GMC, Daewoo, Holden, Opel,
Vauxhall and Wuling. GM's largest national market is the United
States, followed by China, Brazil, Germany, the United Kingdom,
Canada, and Italy. 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 March 31, 2010, GM had $136.021 billion in total assets,
total liabilities of $105.970 billion and preferred stock of
$6.998 billion, and non-controlling interests of $814 million,
resulting in total equity of $23.053 billion.
About Motors Liquidation
General Motors Corporation and three of its affiliates filed for
Chapter 11 protection on June 1, 2009 (Bankr. S.D.N.Y. Lead Case
No. 09-50026). General Motors changed its name to Motors
Liquidation Co. following the sale of its key assets to a company
60.8% owned by the U.S. Government.
The Honorable Robert E. Gerber presides over the Chapter 11 cases.
Harvey R. Miller, Esq., Stephen Karotkin, Esq., and Joseph H.
Smolinsky, Esq., at Weil, Gotshal & Manges LLP, assist the Debtors
in their restructuring efforts. Al Koch at AP Services, LLC, an
affiliate of AlixPartners, LLP, serves as the Chief Executive
Officer for Motors Liquidation Company. GM is also represented by
Jenner & Block LLP and Honigman Miller Schwartz and Cohn LLP as
counsel. Cravath, Swaine, & Moore LLP is providing legal advice
to the GM Board of Directors. GM's financial advisors are Morgan
Stanley, Evercore Partners and the Blackstone Group LLP.
Bankruptcy Creditors' Service, Inc., publishes General Motors
Bankruptcy News. The newsletter tracks the Chapter 11 proceeding
undertaken by General Motors Corp. and its various affiliates.
(http://bankrupt.com/newsstand/or 215/945-7000)
GENERAL MOTORS: Old GM Selling Wilmington Plant for $20 Mil.
------------------------------------------------------------
Motors Liquidation Company, formerly known as General Motors
Corporation, and its debtor-affiliates seek permission from Judge
Robert E. Gerber of the U.S. Bankruptcy Court for the Southern
District of New York to sell real and personal property, including
a motor vehicle assembly plant, located at 801 Boxwood Road, in
Wilmington, Delaware, to Fisker Automotive, Inc., for a purchase
price of $20,000,000 to be paid at the closing of the Sale.
Pursuant to a real estate purchase contract, the Sale calls for
(i) the assumption and assignment of certain executory contracts
and unexpired leases, and (ii) the Debtors' entry into a
settlement agreement with the Delaware Department of Natural
Resources and Environmental Control regarding the responsibility
for ongoing environmental remediation of the real property that is
subject to the Sale.
Harvey R. Miller, Esq., at Weil Gotshal & Manges LLP, in New York,
relates that the Assembly Plant is approximately 3.2 million
square feet, and the Real Property on which it sits is
approximately 142 acres. MLC opened the Assembly Plant in 1947,
and it remained in operation until the Debtors shut it down in
July 2009, shortly after the Petition Date. During its period of
operation, the Assembly Plant produced 8,561,451 motor vehicles.
The Property consists primarily of the Assembly Plant that was
historically used for the production of motor vehicles. Among
other things, the Assembly Plant is currently equipped with a
number of technical and utility systems like a powerhouse
capability, a conveyor system, a waste water treatment facility,
and an emissions abatement system, in addition to numerous other
sophisticated vehicle manufacturing systems.
According to Mr. Miller, the Purchaser has submitted the highest,
best, and only formal offer received for the Property during the
extensive marketing period. The Purchaser, which sought to
purchase the Property for use as a manufacturing and assembly
plant for plug-in hybrid electric vehicles, was able to make an
offer for the Property as a result of the fact that it is
receiving support from the U.S. Department of Energy to aid with
the Sale and its future operations, Mr. Miller says.
Terms of the Contract
Under the Contract, a deposit of $1,000,000, which has already
been funded by the Purchaser, will be deposited in escrow within
five business days after the Contract is signed.
MLC is permitted to consider higher or better competing bids for
the Property prior to the Sale Hearing. In the event that MLC
elects to enter into an agreement for the sale of the Property to
a party that submits a competing bid, MLC may terminate the
Contract with no penalty or break-up fee.
As a condition to the Sale, the Purchaser is responsible for
entering into a Brownfields Development Agreement with the DNREC
that provides that the Purchaser will not be liable for any onsite
environmental conditions that pre-exist the Purchaser's ownership
of the Property and that requires that the Purchaser undertake a
partial site investigation to establish a baseline of
environmental conditions.
The Contract may be terminated at any time prior to the Closing
Date:
-- by the Purchaser if following the Title Review Period, MLC
provides notice that MLC will not cure any defects objected
to by the Purchaser within the time permitted; or
-- by either party upon a default of the other environmental
conditions. MLC will agree to remediate preexisting
environmental conditions on the Real Property as of the
Closing, the nature and scope of which shall be agreed
between MLC and the DNREC; otherwise, all risk and
liability for environmental conditions on the Real Property
will become the Purchaser's at closing, subject to any
limitations upon that liability that the DNREC may permit.
The Purchaser's obligation to close is subject to execution by the
Purchaser and the DNREC of a Brownfields Development Agreement.
Each party pays its own closing costs, and in addition, the
Purchaser pays for the Purchaser's Title Policy, the Survey,
recording taxes, sales taxes, and transfer taxes. MLC and the
Purchaser pro rate the current real property taxes and all
utilities.
The Debtors' primary business purpose at this stage in their
Chapter 11 cases is to wind down their businesses, liquidate their
assets to ensure the greatest recovery for creditors, and resolve
outstanding liability with respect to environmental issues
affecting certain properties, Mr. Miller tells the Court. In
light of the fact that the Debtors no longer operate as
manufacturers of motor vehicles, the Debtors seek to sell the
Property, according to Mr. Miller.
Moreover, because of the heavy carrying costs associated with the
Property, which are in excess of $3 million per year, it is
particularly detrimental to the estate to retain the Property. On
the contrary, conveying the Property to the Purchaser will add
value in connection with distributions to creditors, Mr. Miller
tells Judge Gerber.
The Court will convene a hearing on June 29, 2010, to consider
approval of the Sale. Objections, if any, are due June 22.
About General Motors
With its global headquarters in Detroit, Michigan, General Motors
Company -- http://www.gm.com/-- is one of the world's largest
automakers. GM employs 207,000 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 the following brands:
Buick, Cadillac, Chevrolet, FAW, GMC, Daewoo, Holden, Opel,
Vauxhall and Wuling. GM's largest national market is the United
States, followed by China, Brazil, Germany, the United Kingdom,
Canada, and Italy. 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 March 31, 2010, GM had $136.021 billion in total assets,
Total liabilities of $105.970 billion and preferred stock of
$6.998 billion, and non-controlling interests of $814 million,
resulting in total equity of $23.053 billion.
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)
GREEKTOWN HOLDINGS: Plan Proponents Seek Nod for Exit Documents
---------------------------------------------------------------
Noteholders that are proponents to Greektown Holdings'
reorganization plan, including the Official Committee of Unsecured
Creditors and Deutsche Bank Trust Company Americas, as indenture
trustee for senior notes issued by the Debtors, seek an order from
the Bankruptcy Court in aid of the consummation of the confirmed
Noteholder 11 Plan of Reorganization for the Debtors' estates.
Among the Plan Proponents are bondholders and holders of
prepetition credit agreement claims. They include the John
Hancock Strategic Income Fund and certain affiliates, Manulife
Global Fund U.S. Bond Fund and certain affiliates, Oppenheimer
Champion Income Fund and certain affiliates, Brigade Capital
Management, Sola Ltd., and Solus Core Opportunities Master Fund
Ltd.; and are referred to the Put Parties.
The items the Plan Proponents seek clarification on relate
to (1) a settlement agreement with the city of Detroit,
(2) provisions for an exit facility, (3) management agreement
with Warner Gaming LLC, and (4) the initial officers and directors
for Reorganized Greektown, among others.
The Debtors, the Noteholder Plan Proponents, and the city of
Detroit are parties to a settlement agreement dated February 2010
for the resolution of certain matters, including a development
agreement with the City. The Settlement was approved by the
Detroit City Council and was subsequently approved by the
Bankruptcy Court.
Allan S. Brilliant, Esq., at Dechert LLP, in New York, tells
Judge Shapero that since the Plan's confirmation in January 2010,
the Noteholder Plan Proponents have been working diligently
towards consummation of the Plan in anticipation of the June 30,
2010 closing milestone. He notes that the Put Parties have been
in frequent communication with the city of Detroit and the staff
of the Michigan Gaming Control Board regarding obtaining the
requisite approvals to close the transactions contemplated under
the Plan.
The Plan contemplates an exit financing facility for Reorganized
Greektown. Specifically, Reorganized Greektown will have debt
financing consisting of a $30 million new Revolving Credit
Facility and approximately $385 million in new Senior Secured
Notes, in addition to a new equity financing.
The Exit Revolver Facility will be entered into on the Plan
Effective Date by Reorganized Greektown with all subsidiaries as
guarantors and will be secured by a first lien on all assets of
Reorganized Greektown.
At the time of the Plan's confirmation, the documentation for the
Exit Facility was not complete, although detailed terms were
contained in the Disclosure Statement and Plan.
Mr. Brilliant reveals that the Put Parties have substantially
finalized the Exit Facility Documents and have submitted certain
of the documents to the MGCB for consideration.
In this light and out of an abundance of caution, the Noteholder
Plan Proponents seek the Court's approval of the forms of the
Exit Facility Documents as consistent with all of the
requirements of the Plan, the Confirmation Order, and any other
applicable documents.
Copies of the Exit Facility Documents are available for free at:
http://bankrupt.com/misc/GrktnExitFacDocs.pdf
The Put Parties have chosen Warner Gaming LLC to serve as the
initial management company of Reorganized Greektown. To the
extent the Warner Gaming application has not been approved by the
MGCB as of the anticipated June 30, 2010 Plan Effective Date, or
if for any reason the Management Agreement with Warner Gaming is
not implemented, the Noteholder Plan Proponents seek an order
from the Bankruptcy Court of the consummation of the Plan on the
Anticipated Effective Date without a third party Management
Entity and without a Management Agreement, subject to all
applicable regulatory approvals.
Moreover, the individuals chosen by the Put Parties in
consultation with the other Plan Proponents to serve as initial
officers and directors of Reorganized Greektown also await the
requisite approvals from the MGCB. They are Freman Hendrix,
Michael E. Duggan, Joel I. Ferguson, Benjamin C. Duster IV, John
I. Bitove, George Boyer and Yvette E. Landau.
To the extent that fewer than all of the potential officers or
directors of Reorganized Greektown have received approval from
the MGCB on the Anticipated Effective Date, the Noteholder Plan
Proponents ask Judge Shapero to approve consummation of the Plan
with the number of Potential Directors and Potential Officers
that receive required MGCB approvals by the Anticipated Effective
Date.
Finally, the Noteholder Plan Proponents seek authority to permit
Reorganized Greektown to draw on the New Revolving Credit
Facility at closing in the event they determine, in consultation
with the Debtors, that the draw is necessary and beneficial to
Reorganized Greektown.
The Noteholder Plan Proponents assert that their requests are
consistent with the Plan, are approved by the Confirmation Order
and do not constitute modifications of the Plan.
Mr. Brilliant avers that the Noteholder Plan Proponents seek
approval of their Requests out of an abundance of caution and to
advise the Court of the current status of efforts to consummate
the Plan consistent with the settlement with the City of Detroit.
Mr. Brilliant reports that the Noteholder Plan Proponents have
been advised by the Mayor's Office for the City of Detroit that
it approves of the Debtors' Requests so long as:
-- to the extent Warner Gaming is not the initial management
company, a new management company must be proposed to the
City for approval by the Mayor and City Council on or
before the date that is six months from the Plan Effective
Date; and
-- until a time as a director from Detroit is appointed to the
board of directors, Freman Hendrix will serve as the
ombudsman pursuant to the Settlement Agreement.
The Mayor's Office has also advised that it intends to submit the
relevant matters for the approval of the Detroit City Council
prior to the hearing on the Debtors' Request, Mr. Brilliant
further reveals.
Given that the changes regarding the Management Entity and the
Management Agreement are consistent with the Plan and the Mayor's
Office has already given its approval, the Noteholder Plan
Proponents anticipate that the City Council will also approve
those matters prior to the hearing on their Motion.
In a separate filing, the Noteholder Plan Proponents sought and
obtained a Court order shortening the notice response period of
the Request and scheduling an expedited hearing for June 14,
2010.
About Greektown Casino
Based in Detroit, Michigan, Greektown Holdings, LLC, and its
affiliates -- http://www.greektowncasino.com/-- operate world-
class casino gaming facilities located in Detroit's historic
Greektown district featuring more than 75,000 square feet of
casino gaming space with more than 2,400 slot machines, over 70
tables games, a 12,500-square foot salon dedicated to high limit
gaming and the largest live poker room in the metropolitan Detroit
gaming market. Greektown Casino employs approximately 1,971
employees, and estimates that it attracts over 15,800 patrons each
day, many of whom make regular visits to its casino complex and
related properties. In 2007, Greektown Casino achieved a 25.6%
market share of the metropolitan Detroit gaming market. Greektown
Casino has also been rated as the "Best Casino in Michigan" and
"Best Casino in Detroit" numerous times in annual readers' polls
in Detroit's two largest newspapers.
The Company and seven of its affiliates filed for Chapter 11
protection on May 29, 2008 (Bankr. E.D. Mich. Lead Case No.
08-53104). Daniel J. Weiner, Esq., Michael E. Baum, Esq., and
Ryan D. Heilman, Esq., at Schafer and Weiner PLLC, represent the
Debtors in their restructuring efforts. Judy B. Calton, Esq., at
Honigman Miller Schwartz and Cohn LLP, represents the Debtors as
their special counsel. The Debtors chose Conway MacKenzie &
Dunleavy as their financial advisor, and Kurtzman Carson
Consultants LLC as claims, noticing, and balloting agent. Clark
Hill PLC serves as counsel to the Official Committee of Unsecured
Creditors.
Greektown Holdings listed assets and debts of $100 million to
$500 million in its bankruptcy petition.
Bankruptcy Creditors' Service, Inc., publishes Greektown Casino
Bankruptcy News. The newsletter tracks the Chapter 11
proceedings undertaken by Greektown Casino and its various
affiliates. (http://bankrupt.com/newsstand/or 215/945-7000)
GREEKTOWN HOLDINGS: Taps Osipov Bigelman as Conflicts Counsel
-------------------------------------------------------------
Greektown Holdings Inc. and its units sought and obtained the
Court for authority to employ Osipov Bigelman P.C. as their
special conflicts counsel nunc pro tunc to May 27, 2010.
Daniel J. Weiner, Esq., at Schafer and Weiner PLLC, in Bloomfield
Hills, Michigan, relates that the Debtors are in the process of
filing approximately 50 preference actions and his firm has
certain conflicts of interest, which prohibits it from
prosecuting some of the Preference Actions.
The Conflicted Preference Actions are against these entities:
-- Marvin Beatty;
-- 400 Monroe Associates;
-- New Millenium Advisor;
-- Warehouse Associates LLC; and
-- Sault Ste. Marie Tribe of Chippewa Indians and its related
entities.
For this reason, the Debtors need Osipov Bigelman to prosecute
the Conflicted Preference Actions.
The Debtors will pay Osipov Bigelman at the firm's customary
hourly rates, which are:
Principal/Senior Attorney $240
Associate $185
Legal assistant $90
In addition, the Debtors will reimburse Osipov Bigelman for its
necessary out-of-pocket expenses.
Yuliy Osipov, Esq., a partner at Osipov Bigelman, assures the
Court that his firm is a "disinterested person" within the
meaning of Section 101(14) of the Bankruptcy Code.
In a separate filing, the U.S. Trustee relates that it supports
granting the Debtors' Application.
About Greektown Casino
Based in Detroit, Michigan, Greektown Holdings, LLC, and its
affiliates -- http://www.greektowncasino.com/-- operate world-
class casino gaming facilities located in Detroit's historic
Greektown district featuring more than 75,000 square feet of
casino gaming space with more than 2,400 slot machines, over 70
tables games, a 12,500-square foot salon dedicated to high limit
gaming and the largest live poker room in the metropolitan Detroit
gaming market. Greektown Casino employs approximately 1,971
employees, and estimates that it attracts over 15,800 patrons each
day, many of whom make regular visits to its casino complex and
related properties. In 2007, Greektown Casino achieved a 25.6%
market share of the metropolitan Detroit gaming market. Greektown
Casino has also been rated as the "Best Casino in Michigan" and
"Best Casino in Detroit" numerous times in annual readers' polls
in Detroit's two largest newspapers.
The Company and seven of its affiliates filed for Chapter 11
protection on May 29, 2008 (Bankr. E.D. Mich. Lead Case No.
08-53104). Daniel J. Weiner, Esq., Michael E. Baum, Esq., and
Ryan D. Heilman, Esq., at Schafer and Weiner PLLC, represent the
Debtors in their restructuring efforts. Judy B. Calton, Esq., at
Honigman Miller Schwartz and Cohn LLP, represents the Debtors as
their special counsel. The Debtors chose Conway MacKenzie &
Dunleavy as their financial advisor, and Kurtzman Carson
Consultants LLC as claims, noticing, and balloting agent. Clark
Hill PLC serves as counsel to the Official Committee of Unsecured
Creditors.
Greektown Holdings listed assets and debts of $100 million to
$500 million in its bankruptcy petition.
Bankruptcy Creditors' Service, Inc., publishes Greektown Casino
Bankruptcy News. The newsletter tracks the Chapter 11
proceedings undertaken by Greektown Casino and its various
affiliates. (http://bankrupt.com/newsstand/or 215/945-7000)
GREEKTOWN HOLDINGS: Commences Avoidance Actions
-----------------------------------------------
Greektown Holdings Inc. and its units commenced separate
complaints within May 21 to 28, 2010, to avoid and recover certain
transfers they made to these parties within the 90-day period
before the Petition Date:
* Sault Ste. Marie Tribe of Chippewa Indians
* Kewadin Casinos Gaming Authority, a Political Subdivision of
The Sault Ste. Marie Tribe Of Chippewa Indians, a/k/a Sault
Ste. Marie Tribal Gaming Authority
* Deutsche Bank Trust Company Americas, Deutsche Bank
Blue Cross and Blue Shield of Michigan
* Millennium Management Group LLC
* New Millennium Advisors LLC
* Pepsi Beverages Company a/k/a The Pepsi Bottling Group a/k/a
PepsiAmericas, Pepsico, Inc.
* 400 Monroe Limited Partnership
* City of Detroit Water & Sewer Department a/k/a City of
Detroit Board of Water Commissioners
* Accident Fund Insurance Company of America
* Barden Development, Inc.
* BCBSM Foundation a/k/a Blue Cross and Blue Shield of
Michigan Foundation
* GLB-ITW LLC a/k/a Great Lakes Beverage Co.
* Konami Gaming, Inc.
* MP Liquidating Company LLC a/k/a Miller Parking Company LLC
* Mutual of Omaha Insurance Company
* Renaissance Man Food Services LLC
* Sara Lee Corporation
* Tiffany's Building Services, Inc.
* WMS Gaming Inc.
* Women's Economic Empowerment Group, Inc.
* The Berline Group, Inc.
* Brown's Bun Baking Co.
* American Mailers, Inc.
* Baratta Brothers, Inc. a/k/a Fairway Packing Company, Inc.
* Global Payment Systems LLC a/k/a Global Payment
* Eastown Distributors Company a/k/a Eastown
* Delta Dental Fund a/k/a Delta Dental Foundation
* The Detroit Edison Company
* The Certif-A-Gift Company
* Health Alliance Plan of Michigan a/k/a Alliance Health and
Life
* All In Production LLP a/k/a Heartland Poker Tour
* Cusmano Kandler & Reed, Inc.
* International Game Technology
* Detroit Tigers, Inc.
* Caremark Illinois Mail Pharmacy LLC a/k/a Caremark, Inc.
* Towers Watson Delaware, Inc., f/k/a Watson Wyatt & Company
* Players Travel, Inc.
* Lac Vieux Desert Tribal Council a/k/a Lac Vieux Desert
* U.S. Bancorp f/k/a U.S. Bank Trust
* True Source Distribution LLC
* Otis Elevator Company
* Dell Marketing LP
* M Limousine, Inc.
* Warehouse Associates LLC
* Label Rite, Inc.
* Premier Services Group LLC
* Hartford Financial Services Group, Inc., a/k/a Sun Life
Financial Inc. f/k/a MFS Retirement Services
* Unum Group Corporation a/k/a Unum Life Insurance
* 538274 Ontario Limited
* Zurich Financial Services a/k/a American Zurich Insurance
Company a/k/a Zurich North America
* Anthony Harris
* Hills Howard
* David Akins
* Victoria Loomis
* Reverend Robert Smith
* Harris and Associates P.C.
* George Evans
* Arthur Blackwell
* Chris Jackson
* Marvin Beatty
Among the largest amounts sought for recovery by the Debtors are
the transfers made to these entities:
Amount of
Creditor Transfers Sought
-------- ----------------
Tribe and Kewadin Authority $177,331,741
Dimitrios and Viola Papas $94,291,741
Ted and Maria Gatzaroses $60,700,000
Barden Development, Barden Nevada Gaming LLC $16,340,000
Barden Development, Inc. $5,000,000
Lac Vieux Desert Band of Lake $4,500,000
Superior Chippewa Indians
BCBM Foundation a/k/a Blue Cross and $2,327,515
Blue Shield of Michigan Foundation
Deutsche Bank Trust Company Americas, et al. $402,666
By the Complaints, the Debtors seek to adjudicate their rights
under Sections 544 through 550 with respect to all the transfers.
Representing the Debtors, Kim K. Hillary, Esq., at Schafer and
Weiner, PLLC, in Bloomfield Hills, Michigan, asserts that the
transfers are avoidable for these reasons:
1. The Transfers occurred within 90 days of the Petition Date
or during the "preference period;"
2. The Defendants were creditors of the Debtors and the
Transfers were made on account of an antecedent debt. The
Transfers were for goods or services supplied by the
Defendants;
3. The Transfers were made while the Debtors were insolvent;
and
4. The Transfers enabled the Defendants to receive more than
it would have received if the payments have not been done
or the payments were done under a Chapter 7 proceeding.
Moreover, the Debtors ask the Court to disallow all of the
Defendants' claims under Section 502(d) of the Bankruptcy Code,
unless the Defendants return the Transfer to them, plus costs,
interest and attorney's fees.
The Debtors assert that they have standing to pursue all causes
of action arising under Sections 544 through 550 of the
Bankruptcy Code prior to the occurrence of the effective date of
the confirmed Chapter 11 Plan under their bankruptcy cases. As
of the Effective Date, all Avoidance Actions will vest with the
Litigation Trust to be used solely in the claims reconciliation
process for claims reduction, setoff or defensive purposes.
About Greektown Casino
Based in Detroit, Michigan, Greektown Holdings, LLC, and its
affiliates -- http://www.greektowncasino.com/-- operate world-
class casino gaming facilities located in Detroit's historic
Greektown district featuring more than 75,000 square feet of
casino gaming space with more than 2,400 slot machines, over 70
tables games, a 12,500-square foot salon dedicated to high limit
gaming and the largest live poker room in the metropolitan Detroit
gaming market. Greektown Casino employs approximately 1,971
employees, and estimates that it attracts over 15,800 patrons each
day, many of whom make regular visits to its casino complex and
related properties. In 2007, Greektown Casino achieved a 25.6%
market share of the metropolitan Detroit gaming market. Greektown
Casino has also been rated as the "Best Casino in Michigan" and
"Best Casino in Detroit" numerous times in annual readers' polls
in Detroit's two largest newspapers.
The Company and seven of its affiliates filed for Chapter 11
protection on May 29, 2008 (Bankr. E.D. Mich. Lead Case No.
08-53104). Daniel J. Weiner, Esq., Michael E. Baum, Esq., and
Ryan D. Heilman, Esq., at Schafer and Weiner PLLC, represent the
Debtors in their restructuring efforts. Judy B. Calton, Esq., at
Honigman Miller Schwartz and Cohn LLP, represents the Debtors as
their special counsel. The Debtors chose Conway MacKenzie &
Dunleavy as their financial advisor, and Kurtzman Carson
Consultants LLC as claims, noticing, and balloting agent. Clark
Hill PLC serves as counsel to the Official Committee of Unsecured
Creditors.
Greektown Holdings listed assets and debts of $100 million to
$500 million in its bankruptcy petition.
Bankruptcy Creditors' Service, Inc., publishes Greektown Casino
Bankruptcy News. The newsletter tracks the Chapter 11
proceedings undertaken by Greektown Casino and its various
affiliates. (http://bankrupt.com/newsstand/or 215/945-7000)
HARRAH'S ENTERTAINMENT: Enters Deal to Acquire Thistledown
----------------------------------------------------------
Gary Loveman, chairman, chief executive officer and president of
Harrah's Entertainment stated, "I'm pleased to announce that
Harrah's Entertainment has entered into an agreement to acquire
Thistledowns Race Track. We have thousands of loyal customers who
live in Ohio, and we're glad we will have the opportunity to bring
our unique entertainment options closer to them and to others in
the area. Our decision to acquire Thistledown is yet another step
demonstrating our optimism in the company's future."
About Harrah's Entertainment
Las Vegas, Nevada-based Harrah's Entertainment, Inc. --
http://www.harrahs.com/-- through its wholly owned subsidiary,
Harrah's Operating Company, Inc., operates nearly 40 casinos
across the United States, primarily under the Harrah's(R),
Caesars(R) and Horseshoe(R) brand names; Harrah's also owns the
London Clubs International family of casinos and the World Series
of Poker(R). Private equity firms Apollo Global Management and
TPG Capital LP acquired Harrah's in January for $31 billion.
As of March 31, 2010, the Company had $29.26 billion of total
assets, $27.73 billion of total liabilities, and $1.53 billion of
stockholders' equity. The March 31 balance sheet showed strained
liquidity with $1.67 billion in total current assets against
$1.82 billion of total current liabilities.
* * *
As reported by the Troubled Company Reporter on April 15, 2010,
Standard & Poor's Ratings Services raised its corporate credit and
issue-level ratings on Las Vegas-based Harrah's Entertainment and
its wholly owned subsidiary, Harrah's Operating Co., along with
all issue-level ratings on Harrah's debt, by one notch. S&P
raised the corporate credit rating to 'B-' from 'CCC+'.
The TCR also said Moody's Investors Service affirmed Harrah's
Entertainment's Caa3 Corporate Family Rating, Caa3 Probability of
Default Rating, and SGL-4 Speculative Grade Liquidity were
affirmed.
HARVEST OAKS: Has Access to Secured Lender's Cash until June 30
---------------------------------------------------------------
The Hon. Stephani W. Humrickhouse of the U.S. Bankruptcy Court for
the Eastern District of North Carolina, in a second interim order,
authorized Harvest Oaks Drive Associates, LLC, to use cash
collateral of the CSMC 2006-C5 Strickland Road, LLC and its
special servicer, LNR Partners, Inc., until June 30, 2010.
A further hearing on the Debtor's cash collateral use will be
heard on June 23, 2010, at 2:00 p.m. at the U.S. Bankruptcy Court,
Raleigh, North Carolina.
The Debtor's indebtedness to the lender is secured by a deed of
trust on the shopping center located in North Raleigh located at
9650 Strickland Road and 8801 Lead Mine Road, Raleigh, North
Carolina.
The Debtor would use the rental and other income generated from
the shopping center to fund the operation of its business.
As adequate protection for any diminution in value of the lenders'
collateral, the Debtor will grant the secured lender a first
priority, perfected lien in all post-petition rents, income, and
other proceeds of the property, to the same extent as secured
lender has a first priority, perfected lien in the collateral
prepetition.
About Harvest Oaks
Raleigh, North Carolina-based Harvest Oaks Drive Associates, LLC,
filed for Chapter 11 bankruptcy protection on April 21, 2010
(Bankr. E.D. N.C. Case No. 10-03145). Trawick H Stubbs, Jr.,
Esq., at Stubbs & Perdue, P.A., assists the Company in its
restructuring effort. The Company listed $15,832,000 in assets
and $14,634,161 in debts.
HCA INC: Bank Debt Trades at 6% Off in Secondary Market
-------------------------------------------------------
Participations in a syndicated loan under which HCA, Inc., is a
borrower traded in the secondary market at 93.79 cents-on-the-
dollar during the week ended Friday, June 11, 2010, according to
data compiled by Loan Pricing Corp. and reported in The Wall
Street Journal. This represents a drop of 0.67 percentage points
from the previous week, The Journal relates. The Company pays 225
basis points above LIBOR to borrow under the facility. The bank
loan matures on Nov. 6, 2013, and carries Moody's Ba3 rating and
Standard & Poor's BB rating. The debt is one of the biggest
gainers and losers among 185 widely quoted syndicated loans with
five or more bids in secondary trading for the week ended Friday.
According to the Troubled Company Reporter on May 11, 2010,
Standard & Poor's placed its 'B+' corporate credit rating on
hospital giant HCA Inc. and S&P's ratings on its secured and
unsecured debt on CreditWatch with positive implications. "The
speculative-grade rating on HCA continues to reflect S&P's view
that the largest U.S. owner and operator of acute health care
facilities is particularly sensitive to reduced capacity
utilization and pricing," said Standard & Poor's credit analyst
David Peknay, "by virtue of the significant debt leverage assumed
in its November 2006 leveraged buyout."
Moody's Investors Service placed the ratings of HCA, Inc.,
including the B2 Corporate Family and Probability of Default
Ratings, under review for possible upgrade. This rating action
follows the announcement that the company has filed a Form S-1 in
contemplation of an initial public offering.
Headquartered in Nashville, Tennessee, HCA is the nation's largest
acute care hospital company with 162 hospitals and 106
freestanding surgery centers (including eight hospitals and eight
freestanding surgery centers that are accounted for using the
equity method) as of March 31, 2010. For the twelve months ended
March 31, 2010, the company recognized revenue in excess of
$30 billion.
HEALTH MANAGEMENT: Bank Debt Trades at 7% Off in Secondary Market
-----------------------------------------------------------------
Participations in a syndicated loan under which Health Management
Associates, Inc., is a borrower traded in the secondary market at
92.65 cents-on-the-dollar during the week ended Friday, June 11,
2010, according to data compiled by Loan Pricing Corp. and
reported in The Wall Street Journal. This represents a drop of
0.75 percentage points from the previous week, The Journal
relates. The Company pays 175 basis points above LIBOR to borrow
under the facility. The bank loan matures on Feb. 28, 2014, and
carries Moody's B1 rating and Standard & Poor's BB- rating. The
debt is one of the biggest gainers and losers among 185 widely
quoted syndicated loans with five or more bids in secondary
trading for the week ended Friday.
Headquartered in Naples, Florida, Health Management Associates,
Inc., owns and operates acute-care hospitals in non-urban
settings. The company provides inpatient services such as general
surgery, and oncology as well as outpatient services such as
laboratory, x-ray and physical therapy services. In addition,
some facilities also offer specialty services such as cardiology,
radiation therapy and MRI scanning.
Health Management carries a 'B1' long term corporate and
probability of default ratings, with stable outlook, from Moody's,
a 'B+' issuer credit ratings, with negative outlook, from Standard
& Poor's, and a 'B+' long term issuer default rating, with stable
outlook, from Fitch.
HEALTHSOUTH CORP: Reports of "Good Performance" through May
-----------------------------------------------------------
HealthSouth Corporation said it will distribute a copy of the
handout that addresses, among other things, the Company's
strategy, financial performance, and development process as well
as information related to the new hospital.
The Company provides these brief updates on operational
performance as of June 9, 2010:
Good performance through May
* Volume: solid in April, softened in May, appears to be
rebounding in June;
* Expenses: continue to be aggressively managed; and
* Pricing: favorable year-over-year trend.
In the handout, the Company also notes that it began integration
of the newly acquired Desert Canyon Rehabilitation Hospital on
June 1, 2010 and that the newly built hospital in Loudoun County
will begin accepting patients in mid-June 2010.
A full-text copy of the Company's handout is available for free
at http://ResearchArchives.com/t/s?64b7
About HealthSouth
Birmingham, Alabama, HealthSouth Corporation (NYSE: HLS) --
http://www.healthsouth.com/-- is the nation's largest provider of
inpatient rehabilitative healthcare services. Operating in 26
states across the country and in Puerto Rico, HealthSouth serves
patients through its network of inpatient rehabilitation
hospitals, long-term acute care hospitals, outpatient
rehabilitation satellites, and home health agencies.
As of December 31, 2009, the Company had total assets of
$1.681 billion against total liabilities of $2.191 billion and
convertible perpetual preferred stock of $387.4 million.
HENRICA'S RESTAURANT: Files for Chapter 11 Protection
-----------------------------------------------------
David Montalvo at Crain's New York Business reports that New York-
based Henrica's Restaurant filed for Chapter 11 bankruptcy
protection, listing assets of $31,900 and $134,000 in debts. The
Company said it owes $58,175 in state and federal taxes, and
$56,000 to ConEd. The Company has a health department violation
history well above the city average, according to the report.
HERCULES OFFSHORE: Bank Debt Trades at 14% Off in Secondary Market
------------------------------------------------------------------
Participations in a syndicated loan under which Hercules Offshore,
Inc., is a borrower traded in the secondary market at 86.40 cents-
on-the-dollar during the week ended Friday, June 11, 2010,
according to data compiled by Loan Pricing Corp. and reported in
The Wall Street Journal. This represents a drop of 5.85
percentage points from the previous week, The Journal relates.
The Company pays 650 basis points above LIBOR to borrow under the
facility. The bank loan matures on July 11, 2013, and carries
Moody's B2 rating and Standard & Poor's B rating. The debt is one
of the biggest gainers and losers among 185 widely quoted
syndicated loans with five or more bids in secondary trading for
the week ended Friday.
As reported by the Troubled Company Reporter on June 10, 2010,
Standard & Poor's took several rating actions on eight U.S. oil
and gas companies, including Hercules Offshore, Inc., following an
industry review. S&P's review of the sector follows its release
on June 1, 2010, which indicated S&P would review companies with
operating exposure to the Gulf Of Mexico following the U.S.
Department of the Interior's extension of the moratorium on
drilling permits. The six-month moratorium affects permits issued
for new drilling operations at water depths greater than 500 feet.
S&P believes that when the moratorium is eventually lifted, there
could be extensive delays in issuing new permits due to high
initial volume and new safety and operating standards imposed.
S&P downgraded Hercules Offshore's rating from (B/Negative/--) to
(B-/Negative/--).
The rating actions also reflect S&P's heightened concerns about
the burgeoning scope of the Macondo well disaster. The flow of
oil into the Gulf of Mexico is likely to continue until at least
August. Uncertainty about the ultimate remediation cost and
potential financial liabilities associated with the disaster has
already resulted in a rating downgrade of the corporate credit
rating of BP PLC (AA-/Watch Neg/A-1+).
Hercules Offshore, Inc. (NASDAQ: HERO) --
http://www.herculesoffshore.com/-- provides shallow-water
drilling and marine services to the oil and natural gas
exploration and production industry in the United States, Gulf of
Mexico and internationally. The Company provides these services
to integrated energy companies, independent oil and natural gas
operators and national oil companies. The Company operates in six
business segments: Domestic Offshore, International Offshore,
Inland, Domestic Liftboats, International Liftboats and Delta
Towing.
HEXION SPECIALTY: Unit Agrees to Guarantee Sr. Secured Facility
---------------------------------------------------------------
NL COOP Holdings LLC and Hexion International Holdings Cooperatief
U.A. entered into supplements to the guarantee and collateral
agreements that secure the Senior Secured Credit Facilities of
Hexion Specialty Chemicals, Inc. Pursuant to the supplements Sub
Co. agreed to guarantee all U.S. and foreign obligations under the
Senior Secured Credit Facilities and granted a lien over its
assets to secure such obligations and COOP agreed to guarantee all
foreign obligations under the Senior Secured Credit Facilities and
granted a lien over its assets to secure such obligations. Sub Co.
is organized in Delaware and a direct wholly-owned subsidiary of
the Company. COOP is organized in the Netherlands and is owned by
Sub Co. and the Company.
Hexion U.S. Finance Corp., Hexion Nova Scotia Finance, ULC, the
Company, Sub Co. and Wilmington Trust FSB, as trustee, entered
into a supplemental indenture to the Indenture governing the
Issuers' 8.875% Senior Secured Notes due 2018, dated as of January
29, 2010, by and among Hexion Finance Escrow LLC, Hexion Escrow
Corp. and Wilmington Trust FSB, as trustee, pursuant to which Sub
Co. agreed to be a guarantor under the 1 1/2 Lien Notes Indenture.
On June 4, 2010, Sub Co. also entered into a supplement to the
collateral agreement that secures obligations under the 1 1/2 Lien
Notes Indenture pursuant to which it granted a lien over its
assets to secure such obligations.
Issuers, the Company, Sub Co. and Wilmington Trust Company, as
trustee, entered into a supplemental indenture to the Indenture
governing the Issuers' second-priority senior secured floating
rate notes due 2014 and second-priority senior secured 9 3/4%
notes due 2014, dated as of November 3, 2006, by and among the
Issuers, the Company, the guarantors named therein and Wilmington
Trust Company, as trustee, pursuant to which Sub Co. agreed to be
a guarantor under the Second Lien Notes Indenture. On June 4,
2010, Sub Co. also entered into a supplement to the collateral
agreement that secures obligations under the Second Lien Notes
Indenture pursuant to which it granted a lien over its assets to
secure such obligations.
About Hexion Specialty Chemicals
Based in Columbus, Ohio, Hexion Specialty Chemicals --
http://www.hexion.com/-- serves the global wood and industrial
markets through a broad range of thermoset technologies, specialty
products and technical support for customers in a diverse range of
applications and industries. Hexion Specialty Chemicals is
controlled by an affiliate of Apollo Management, L.P.
* * *
As reported by the Troubled Company Reporter on February 5, 2010,
Standard & Poor's Ratings Services raised its ratings, including
its corporate credit rating to 'B-' from 'CCC+', on Hexion
Specialty Chemicals Inc. The TCR on January 26, 2010, said
Moody's Investors Service changed the outlook on Hexion (B3
Corporate Family Rating) to stable from negative due to the
successful refinancing and extension of its term loan debt with $1
billion of 8.875% 1.5 lien notes due 2018.
HILL ENTERPRISES: Case Summary & 20 Largest Unsecured Creditors
---------------------------------------------------------------
Debtor: Hill Enterprises, Inc.
8040 Queenair Drive
Gaithersburg, MD 20879
Bankruptcy Case No.: 10-22879
Chapter 11 Petition Date: June 8, 2010
Court: U.S. Bankruptcy Court
District of Maryland (Greenbelt)
Debtor's Counsel: Philip James McNutt, Esq.
Hughes & Bentzen, PLLC
1100 Connecticut Avenue NW, Suite 340
Washington, DC 20036
Tel: (202) 293-8975
Fax: (202) 293-8973
E-mail: pmcnutt@hughesbentzen.com
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/mdb10-22879.pdf
The petition was signed by Rayola Hill.
HOWARD RIFAS: Voluntary Chapter 11 Case Summary
-----------------------------------------------
Debtor: Howard Rifas
750 NW 92nd Avenue
Pembroke Pines, FL 33024
Bankruptcy Case No.: 10-26375
Chapter 11 Petition Date: June 10, 2010
Court: U.S. Bankruptcy Court
Southern District of Florida (Fort Lauderdale)
Judge: Raymond B. Ray
Debtor's Counsel: David Marshall Brown, Esq.
330 N Andrews Avenue # 450
Ft Lauderdale, FL 33301
Tel: (954) 765-3166
Fax: (954) 765-3382
E-mail: david@brownvanhorn.com
Estimated Assets: $500,001 to $1,000,000
Estimated Debts: $100,000,001 to $500,000,000
The Debtor did not file a list of creditors together with its
petition.
The petition was signed by the Debtor.
HUNTSMAN ICI: Bank Debt Trades at 7% Off in Secondary Market
------------------------------------------------------------
Participations in a syndicated loan under which Huntsman ICI is a
borrower traded in the secondary market at 92.68 cents-on-the-
dollar during the week ended Friday, June 11, 2010, according to
data compiled by Loan Pricing Corp. and reported in The Wall
Street Journal. This represents a drop of 0.74 percentage points
from the previous week, The Journal relates. The Company pays 175
basis points above LIBOR to borrow under the facility. The bank
loan matures on April 23, 2014, and carries Moody's Ba2 rating and
Standard & Poor's B+ rating. The debt is one of the biggest
gainers and losers among 185 widely quoted syndicated loans with
five or more bids in secondary trading for the week ended Friday.
Huntsman Corp. -- http://www.huntsman.com/-- is a global
manufacturer and marketer of differentiated chemicals. Its
operating companies manufacture products for a variety of global
industries, including chemicals, plastics, automotive, aviation,
textiles, footwear, paints and coatings, construction, technology,
agriculture, health care, detergent, personal care, furniture,
appliances and packaging. Originally known for pioneering
innovations in packaging and, later, for rapid and integrated
growth in petrochemicals, Huntsman has more than 12,000 employees
and operates from multiple locations worldwide. The Company had
2008 revenues exceeding $10 billion.
I & C PROPERTY: Leslie S. Osborne Appointed as Chapter 11 Trustee
-----------------------------------------------------------------
The Hon. Raymond B. Ray of the U.S. Bankruptcy Court for the
Southern District of Florida approved the appointment of Leslie S.
Osborne as Chapter 11 trustee in the bankruptcy case of I & C
Property Management, Inc.
Oakland Park, Florida-based I & C Property Management, Inc., filed
for Chapter 11 bankruptcy protection on January 12, 2010 (Bankr.
S.D. Fla. Case No. 10-10539). The Company listed $10,000,001 to
$50,000,000 in assets and $100,001 to $500,000 in liabilities.
INN AT MISSOURI: Files Schedules of Assets and Liabilities
----------------------------------------------------------
Inn at Missouri Research Park, LLLP, filed with the U.S.
Bankruptcy Court for the Eastern District of Missouri its
schedules of assets and liabilities, disclosing:
Name of Schedule Assets Liabilities
---------------- ----------- -----------
A. Real Property $10,100,000
B. Personal Property $919,000
C. Property Claimed as
Exempt
D. Creditors Holding
Secured Claims $8,415,458
E. Creditors Holding
Unsecured Priority
Claims $4,080
F. Creditors Holding
Unsecured Non-priority
Claims $283,957
----------- -----------
TOTAL $11,019,000 $8,703,495
St. Louis, Missouri-based Inn at Missouri Research Park, LLP, dba
Wingate by Wyndham Hotel, filed for Chapter 11 bankruptcy
protection on May 3, 2010 (Bankr. E.D. Mo. Case No. 10-44907).
David M. Dare, Esq., at Herren, Dare & Streett, 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.
ISLE OF CAPRI: Bank Debt Trades at 7% Off in Secondary Market
-------------------------------------------------------------
Participations in a syndicated loan under which Isle of Capri
Casinos, Inc., is a borrower traded in the secondary market at
92.92 cents-on-the-dollar during the week ended Friday, June 11,
2010, according to data compiled by Loan Pricing Corp. and
reported in The Wall Street Journal. This represents a drop of
1.13 percentage points from the previous week, The Journal
relates. The Company pays 175 basis points above LIBOR to borrow
under the facility. The bank loan matures on Dec. 19, 2013, and
carries Moody's B1 rating and Standard & Poor's B+ rating. The
debt is one of the biggest gainers and losers among 185 widely
quoted syndicated loans with five or more bids in secondary
trading for the week ended Friday.
Isle of Capri Casinos, Inc., located in Saint Louis, Missourri,
owns and operates 18 casino properties throughout the U.S. The
company also has international gaming interests in the Grand
Bahamas and England. Net revenue for the 12-month period ended
Oct. 26, 2008, was about $1.1 billion.
JAMES FRAMPTON: Case Summary & 17 Largest Unsecured Creditors
-------------------------------------------------------------
Debtor: James P. Frampton
3415 Lark Street
San Diego, CA 92103-4714
Bankruptcy Case No.: 10-10099
Chapter 11 Petition Date: June 10, 2010
Court: U.S. Bankruptcy Court
Southern District of California (San Diego)
Judge: Margaret M. Mann
Debtor's Counsel: Thomas S. Engel, Esq.
964 Fifth Avenue, Suite 400
San Diego, CA 92101
Tel: (619) 544-1415
E-mail: lawengmill@aol.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
According to the schedules, the Debtor says that assets total
$2,563,185 while debts total $1,660,952.
A copy of the Debtor's list of 17 largest unsecured
creditors filed together with the petition is available for
free at http://bankrupt.com/misc/casb10-10099.pdf
The petition was signed by the Debtor.
JERSEY ISLAND: Case Summary & 7 Largest Unsecured Creditors
-----------------------------------------------------------
Debtor: Jersey Island Owner, LLC
11200 Rockville Pike, Suite 502
Rockville, MD 20852
Bankruptcy Case No.: 10-22970
Chapter 11 Petition Date: June 9, 2010
Court: U.S. Bankruptcy Court
District of Maryland (Greenbelt)
Debtor's Counsel: Bradford F. Englander, Esq.
Whiteford Taylor & Preston, L.L.P.
3190 Fairview Park, Suite 300
Falls Church, VA 22042
Tel: (703) 280-9081
Fax: (703) 280-3370
E-mail: benglander@wtplaw.com
Estimated Assets: $10,000,001 to $50,000,000
Estimated Debts: $10,000,001 to $50,000,000
The petition was signed by Sidney M. Bresler, president of Jersey
Island Manager Inc.
Debtor's List of 7 Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
------ --------------- ------------
Somerset County -- $111,919
30513 Prince William Street
P.O. Box 309
Princess Anne, MD 21853
Tangier Sound Homeowners Assoc -- $7,769
803 W. Main Street
Crisfield, MD 21817
Tangier Sound Condo I, Inc. -- $6,004
1089 Puppy Hole Court
Crisfield, MD 21817
Home Title Company, Inc. -- $1,600
Verizon -- $1,430
Frick Electric Heating & -- $857
Air Co Inc.
Cards Computers, Inc. -- $266
JIMENEZ LOPEZ: Case Summary & 20 Largest Unsecured Creditors
------------------------------------------------------------
Debtor: Jimenez Lopez & Hijos Inc.
dba The Taco Maker & Jack's Over the Top
Edificio Caribbean Cinemas 7
1564 Ave Miramar Suite 5
Arecibo, PR 00612
Bankruptcy Case No.: 10-05012
Chapter 11 Petition Date: June 8, 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: $0 to $50,000
Estimated Debts: $1,000,001 to $10,000,000
A list of the Company's 20 largest unsecured creditors
filed together with the petition is available for free
at http://bankrupt.com/misc/prb10-05012.pdf
The petition was signed by Jose Jimenez Lopez, treasurer.
JMR HOLDINGS: Case Summary & 5 Largest Unsecured Creditors
----------------------------------------------------------
Debtor: JMR Holdings and Investments, LLC
316 W. Nepessing Street
Lapeer, MI 48446
Bankruptcy Case No.: 10-33256
Chapter 11 Petition Date: June 8, 2010
Court: United States Bankruptcy Court
Eastern District of Michigan (Flint)
Judge: Daniel S. Opperman
Debtor's Counsel: Dennis M. Haley, Esq.
G-9460 S. Saginaw Street, Suite A
Grand Blanc, MI 48439
Tel: (810) 579-3600
E-mail: ecf@winegarden-law.com
Estimated Assets: $100,001 to $500,000
Estimated Debts: $1,000,001 to $10,000,000
A list of the Company's 5 largest unsecured creditors
filed together with the petition is available for free
at http://bankrupt.com/misc/mieb10-33256.pdf
The petition was signed by Jason M. Rogers, managing member.
JOHN BRATTON: Voluntary Chapter 11 Case Summary
-----------------------------------------------
Debtor: John Melvin Bratton
2125 Sutton Place
Plano, TX 75093
Bankruptcy Case No.: 10-43883
Chapter 11 Petition Date: June 8, 2010
Court: United States Bankruptcy Court
Northern District of Texas (Ft. Worth)
Judge: Russell F. Nelms
Debtor's Counsel: John Y. Bonds, III, Esq.
Shannon, Gracey, Ratliff & Miller
777 Main St., Suite 3800
Ft. Worth, TX 76102-5304
Tel: (817) 336-9333
Fax: (817) 336-3735
E-mail: jbonds@shannongracey.com
Estimated Assets: $10,000,001 to $50,000,000
Estimated Debts: $10,000,001 to $50,000,000
The petition was signed by John Melvin Bratton.
The Debtor did not file a list of its largest unsecured creditors
together with its petition.
Debtor-affiliates that filed separate Chapter 11 petitions:
Petition
Debtor Case No. Date
------ -------- ----
Majestic GP II, LLC 10-43853 06/06/10
Majestic GP, LLC 10-43852 06/06/10
Majestic Liquor Stores 10-43849 06/06/10
Majestic Liquor Stores, Inc. 10-43849 06/06/10
Majestic Texas Properties, L.C. 10-43850 06/06/10
Majestic Texas-Grapevine, L.P. 10-43851 06/06/10
JOHN MANEELY CO: Bank Debt Trades at 6% Off in Secondary Market
---------------------------------------------------------------
Participations in a syndicated loan under which John Maneely
Company is a borrower traded in the secondary market at 94.30
cents-on-the-dollar during the week ended Friday, June 11, 2010,
according to data compiled by Loan Pricing Corp. and reported in
The Wall Street Journal. This represents a drop of 0.66
percentage points from the previous week, The Journal relates.
The Company pays 325 basis points above LIBOR to borrow under the
facility. The bank loan matures on Dec. 9, 2013, and carries
Moody's B3 rating and Standard & Poor's B rating. The debt is one
of the biggest gainers and losers among 185 widely quoted
syndicated loans with five or more bids in secondary trading for
the week ended Friday.
As reported by the Troubled Company Reporter on June 3, 2010,
Moody's changed the rating outlook for John Maneely Company and
6582125 Canada Inc. to stable from negative. The company's
corporate family remains at B2. The revised rating outlook
recognizes the effective job JMC has done managing through the
severe downturn of the last 18 months and its debt reduction over
the last nine months.
The B2 corporate family rating positively reflects JMC's highly
variable cost structure, large scale and leading market position
for many of its pipe products and electrical conduit, and adequate
liquidity. However, the rating is constrained by Moody's
expectation for challenging market conditions for JMC's largest
market -- the non-residential construction market -- with that
market still declining and a recovery possibly several years away.
The company remains highly levered and has a relatively high
reliance on commodity types of products that tend to have
aggravated cycles, which impacts margins.
Moody's previous rating action for JMC was on Sept. 29, 2009, when
the company's ratings were confirmed (B2 CFR) and a negative
rating outlook was assigned, concluding a review for possible
downgrade that began in June 2009.
Headquartered in Beachwood, Ohio, John Maneely Company
manufactures steel pipe, hollow structural steel, electrical
conduit products and tubular products at ten manufacturing
facilities in the U.S. and Canada. The Company is number one or
two in its key product areas: HSS, standard pipe and electrical
conduit. JMC also enjoys leading market positions in the
galvanized mechanical tube and fittings markets. Its products are
sold principally to plumbing and electrical distributors. JMC's
parent, DBO Holdings, Inc., is approximately 55% owned by the
Carlyle Partners IV, LP.
K-V PHARMACEUTICAL: Restructures Senior Executive Management
------------------------------------------------------------
K-V Pharmaceutical Company conducted its Annual Meeting of
Shareholders on June 10, 2010, for the fiscal year ended March 31,
2009.
At the Annual Shareholders' meeting, Mark A. Dow, Gregory Bentley
and Joseph D. Lehrer were newly elected as directors, with one-
year terms. Messrs. Dow, Bentley and Lehrer combine extensive
public company expertise in the pharmaceutical industry and in the
areas of transactions, finance and law. Also re-elected to the
Board of Directors at the meeting by a majority vote of the
shareholders were Chairman Terry Hatfield and current Board
members John Sampson, David Hermelin and Marc Hermelin. The Board
meets all corporate governance requirements for independence, with
Messrs. Hatfield, Sampson, Dow, and Lehrer qualifying as
independent directors.
The Company believes that the Board elected to serve at
yesterday's Annual Meeting should be well equipped to help KV
complete its turnaround, as well as plan for the growth
anticipated from the future re-launch of certain approved products
and the launch of Gestiva(TM) upon FDA approval. The new
Directors are expected to strengthen the existing Board in areas
including financial management as well as adding expertise to the
Board in areas of legal, regulatory and quality systems. The KV
Board is now maximized relative to pharmaceutical industry
experience to work towards rebuilding and refocusing the Company's
resources to prepare and position KV for the future.
The Company and the Board of Directors expresses its appreciation
to former Directors Kevin Carlie, Norm Schellenger, Jonathan
Kilmer and Jean Bellin for their tireless efforts during their
terms of service as members of KV's Board.
Among the Directors who were reelected in the Shareholders'
Meeting was Marc S. Hermelin, who served as KV's Chief Executive
Officer from 1975 until December 2008 and as a Director of KV's
Board continuously since the middle of the 1970s. During this
period of time, KV transitioned from a small contract manufacturer
of pharmaceuticals to a leader in drug delivery technology and a
marketer of specialty pharmaceutical products.
Mr. Hermelin has advised the Company that he will not return to KV
in any officer or employee capacity. His stated goal is to assist
building a highly functioning world-class Board of Directors of KV
that will help to rebuild and monitor the Company's business as it
returns to full profitability and growth. He plans to serve on
the KV Board on a transitional basis for the short period of time
that he anticipates it will take to ensure that KV has weathered
the challenges it currently faces.
The three other Directors who were reelected by the shareholders
in yesterday's meeting are Terry Hatfield, who has served as
Chairman since December 2008, John Sampson, who joined KV's Board
in January 2010, bringing more than 30 years of experience in
pharmaceutical sales, marketing and research, and David Hermelin,
who has served as Director since 2004 and who formerly served as
KV's Vice President of Corporate Growth and Strategy.
The Board's primary focus is two-fold: to continue to work with
the Food and Drug Administration to reinstate KV to Good
Manufacturing Practice compliance; and to continue to explore a
variety of financial alternatives currently under review as a
means with which to strengthen the Company's cash position.
At a Board meeting immediately following the Fiscal 2009 Annual
Meeting of Shareholders, the Board initiated a restructuring of
senior executive management of the Company.
Mr. David Van Vliet, who was appointed on December 5, 2008 as
Interim President and Interim Chief Executive Officer is no longer
with the company. The Board has made the decision to focus on its
efforts to identify external chief executive candidates who have
many years of pharmaceutical experience. Until such time a
candidate can be identified and hired, the Board has appointed Mr.
Gregory J. Divis to act as the new Interim President and Interim
Chief Executive Officer of the Company.
Mr. Divis has and will to continue to serve as President of Ther-
Rx Corporation, the branded pharmaceutical subsidiary of the
Company. Prior to joining KV, Mr. Divis, over a period of nearly
18 years, served in a variety of Commercial and General Management
leadership positions with successful large pharmaceutical
companies such as Schering-Plough Corporation and Sanofi-Aventis.
This included direct responsibility for entire country operations
in the UK and Ireland, extensive Business Development experience,
and significant commercial leadership experience for large multi-
national corporations. Since July 2007, Mr. Divis has served as
President of Ther-Rx Corporation. Mr. Divis holds a Bachelors
Degree from the University of Iowa.
The Board believes that with his extensive pharmaceutical
experience and the experience garnered during his tenure at KV,
Mr. Divis will serve as a qualified and effective Interim
President and Interim Chief Executive Officer and will support him
in his efforts to move the Company forward.
Mr. Divis stated, "It has been a difficult period for KV, one
which will only serve to strengthen our efforts to ensure that we
are without question focused on the compliance, quality, safety
and timely supply of our customers once KV has corrected all of
its deficiencies and has become an approved pharmaceutical company
by the Food and Drug Administration. I and other KV team members
will continue to work closely with both Lachman and Associates and
the FDA to ensure that we meet all the requirements to fulfill and
sustain our commitment to the FDA. The entire KV team has worked
many long and hard hours to get the Company 'back to business' and
look forward to working closely with the FDA to achieve our goal
to return the organization to a state of GMP compliance. I and
the Board of Directors are committed to doing all that we can to
restore KV's revenue stream and shareholder value."
Background on Newly Elected Directors
Mark A. Dow is a CPA who retired from a 36-year career at
PriceWaterhouse Coopers, LLP in June 2008 where he was the leader
of its middle market tax practice. In this capacity, Mr. Dow
provided tax and business advice to rapidly growing companies and
to private equity groups. He, therefore, has experience in merger
and acquisition structuring, tax due diligence and sell-side
transaction services. His other specialties include IRS dispute
resolution, inventory and other accounting methods. His client
base has primarily consisted of manufacturers, distributors,
retailers and early stage technology companies. Mr. Dow provided
advice to KV in the 1990's when Coopers & Lybrand served as KV's
external auditors. He also served for three years on the Advisory
Board of Bock Pharmacal, a branded pharmaceutical marketer
specializing in women's health until the time of Bock's purchase
by Sanofi.
Mr. Dow has a B.B.A. in Accounting from Eastern Michigan
University. He currently serves on two Boards of Directors of
non-public companies, both with revenues of approximately
$600 million and growing.
Gregory Bentley, JD is an attorney with more than 32 years of
experience in matters relating to corporate, commercial,
pharmaceutical compliance, securities, Sarbanes Oxley,
transactional (mergers and acquisitions), FDA regulatory matters
and antitrust, with extensive experience in the management of
civil litigation. Mr. Bentley has spent 15 years as General
Counsel or Vice President, Regulatory and Quality, for FDA-
regulated companies in the pharmaceutical, pharmaceutical
development services, and medical devices fields. He also spent 9
years working as an antitrust and corporate attorney in Shearman &
Sterling, a major Wall Street law firm, before becoming Associate
General Counsel and lead mergers and acquisition counsel for
Siemens Corporation. In 1994, Mr. Bentley joined Siemens Medical
Systems, a large medical devices company, as Vice President of
Regulatory and Quality to lead its efforts to correct FDA GMP
problems that had resulted in a consent order that had shut down
several businesses. Mr. Bentley succeeded in that role and
restored its GMP compliance and its credibility and reputation
with the FDA, allowing the businesses to reopen. In 1999, he
joined aaiPharma Inc., a drug development services company that
was expanding into pharmaceuticals. After many years of growth,
Mr. Bentley led the legal efforts for this company's
reorganization when it developed severe financial difficulties.
Between 2006 and early 2009, he was Senior Vice President and
General Counsel of the Company.
Mr. Bentley was awarded a B.S. in Applied Physics and an M.S. in
Economics from Tufts University in 1971. He earned his J.D. from
Columbia Law School in 1977.
Joseph D. Lehrer, currently serves as Chairman of the Corporate
Department for Greensfelder, Hemker & Gale, P.C., a business law
firm headquartered in St. Louis, Missouri, with approximately 170
lawyers. Mr. Lehrer was formerly the President of that firm.
In his 37 years of practice, Mr. Lehrer has represented numerous
clients in merger, acquisition and divestiture transactions and in
regard to venture capital and private financing transactions. Mr.
Lehrer has also represented the Board of Directors of both
publicly traded registered corporations and substantial privately
held corporations with respect to corporate governance matters,
and has acted as the Board's special transaction counsel. He has
also served on the Board of Directors of both private and publicly
traded corporations, including as Chairman of the Board, Chairman
of the Audit Committee, Chairman of the Compensation Committee,
and a member of the Executive Committee of various public
companies. In one of these companies, in addition to his Board
membership, Mr. Lehrer participated in the turnaround of a failing
company that was successfully sold to a private investment group.
Mr. Lehrer has experience relating to the pharmaceutical industry.
In particular, Mr. Lehrer was the lead attorney in the successful
initial public offering of Jones Medical, formerly a St. Louis
based pharmaceutical marketer, and participated in his Firm's
representation of Jones Medical in connection with its merger with
King Pharmaceuticals, Inc. (KG). Further, Mr. Lehrer was the
primary counsel for Bock Pharmacal Company, formerly a St. Louis
based pharmaceutical marketer specializing in women's health, and
served on its Advisory Board of Directors.
Mr. Lehrer is an Adjunct Professor of Law at Washington University
School of Law, teaching business law. He has also been a panel
member or moderator on national legal education panels discussing
issues related to corporate governance, mergers and acquisitions
and the Sarbanes-Oxley Act. Mr. Lehrer received his undergraduate
degree from Washington University in 1970 and his J.D. from
Washington University in 1973.
About KV Pharmaceutical Company
K-V Pharmaceutical Company is a fully-integrated specialty
pharmaceutical company that develops, manufactures, markets and
acquires technology-distinguished branded prescription products.
The Company markets its technology-distinguished products through
Ther-Rx Corporation, its branded drug subsidiary.
As reported in the Troubled Company Reporter on March 29, 2010,
KPMG LLP, in St. Louis, Missouri, espressed substantial doubt
about the Company's ability to continue as a going concern after
auditing the Company's financial statements for the fiscal year
ended March 31, 2009. The independent auditors noted that the
Company suspended the shipment of all products manufactured by the
Company and must comply with a consent decree with the FDA before
approved products can be reintroduced to the market. "Significant
negative impacts on operating results and cash flows from these
actions including the potential inability of the Company to raise
capital; suspension of manufacturing; significant uncertainties
related to litigation and governmental inquiries; and debt
covenant violations raise substantial doubt about the Company's
ability to continue as a going concern."
KAINOS PARTNERS: Wants Case Converted to Chapter 7 Liquidation
--------------------------------------------------------------
Kainos Partners Holding Company LLC, et al., ask the U.S.
Bankruptcy Court for the District of Delaware to convert the
Chapter 11 case to one under Chapter 7 of the Bankruptcy Code.
The Debtors relate that they sold all of their assets and there is
no reasonable likelihood for a successful reorganization.
As reported in the Troubled Company Reporter on April 7, 2010,
Bill Rochelle at Bloomberg News reported that Dunkin bought most
of the stores for $3.5 million cash.
The Debtors propose a hearing on the conversion of the case on
June 21, 2010, at 2:30 p.m. Objections, if any are due on
June 14, 2010, at 4:00 p.m.
About Kainos Partners Holding Company
Greer, South Carolina-based Kainos Partners Holding Company, LLC
-- http://www.kainospartners.com/-- operates the "donut-and-
coffee" franchises.
The Company and its affiliates filed for Chapter 11 on July 6,
2009 (Bankr. D. Del. Lead Case No. 09-12292). Two of its
affiliates filed for separate Chapter 11 petitions on Sept. 15,
2009 (Bankr. D. Del. Case Nos. 09-13213 to 09-13214). An
affiliate filed for separate Chapter 11 petition on Sept. 23, 2009
(Bankr. D. Del. Case No. 09-13285). Attorneys at the Law Offices
of Joseph J. Bodnar represent the Debtors in their restructuring
efforts. The Debtor did not file a list of 20 largest unsecured
creditors. In its petition, the Debtors listed assets and debts
both ranging from $10 million and $50 million.
KASTLE KIDZ: Case Summary & 13 Largest Unsecured Creditors
----------------------------------------------------------
Debtor: Kastle Kidz, Inc.
dba Kidz Kastle
Pizza Kastle
3400 Ross Clark Circle
Dothan, AL 36303
Bankruptcy Case No.: 10-11061
Chapter 11 Petition Date: June 8, 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: $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
$1,104,012 while debts total $2,500,169
A copy of the Company's list of 13 largest unsecured creditors
filed together with the petition is available for free
at http://bankrupt.com/misc/almb10-11061.pdf
The petition was signed by Elizabeth Sabrina Patton, president.
KYLE FAIR: Voluntary Chapter 11 Case Summary
--------------------------------------------
Joint Debtors: Kyle Tate Fair
Suzanne Patricia Fair
5609 Cradlerock Circle
Plano, TX 75093
Bankruptcy Case No.: 10-43885
Chapter 11 Petition Date: June 8, 2010
Court: United States Bankruptcy Court
Northern District of Texas (Ft. Worth)
Judge: Russell F. Nelms
Debtor's Counsel: John Y. Bonds, III, Esq.
Shannon, Gracey, Ratliff & Miller
777 Main St., Suite 3800
Ft. Worth, TX 76102-5304
Tel: (817) 336-9333
Fax: (817) 336-3735
E-mail: jbonds@shannongracey.com
Estimated Assets: $10,000,001 to $50,000,000
Estimated Debts: $10,000,001 to $50,000,000
The petition was signed by Kyle Tate Fair and Suzanne Patricia
Fair.
The Debtor did not file a list of its largest unsecured creditors
together with its petition.
Debtor-affiliates that filed separate Chapter 11 petitions:
Petition
Debtor Case No. Date
------ -------- ----
Majestic GP II, LLC 10-43853 06/06/10
Majestic GP, LLC 10-43852 06/06/10
Majestic Liquor Stores 10-43849 06/06/10
Majestic Liquor Stores, Inc. 10-43849 06/06/10
Majestic Texas Properties, L.C. 10-43850 06/06/10
Majestic Texas-Grapevine, L.P. 10-43851 06/06/10
LA BOTA: Rock Tech's Cash Collateral Hearing Set for Today
----------------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of Texas will
consider at a hearing today, June 14, 2010, at 9:00 a.m., La Bota
Development Company, et al.'s use of Bank Midwest, N.A.'s cash
collateral. The hearing will be held at U.S. Courthouse, 1133
Shoreline Blvd., Corpus Christi, Texas.
The Court, in a second interim order, authorized Laredo Rock Tech
Sand & Gravel, LP, a debtor-affiliate, to use the cash collateral
to operate its business.
As adequate protection for any diminution in value of the lenders'
collateral, Rock Tech will grant BM replacement lien on
postpetition accounts and accounts receivable arising from the
collateral.
Sugar Land, Texas-based La Bota Development Company, Inc., filed
for Chapter 11 bankruptcy protection on May 3, 2010 (Bankr. S.D.
Texas Case No. 10-20376). Steven Douglas Shurn, Esq., at Hughes
Watters and Askanase, 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 liabilities.
LA BOTA: Taps HughesWattersAskanase as Bankruptcy Counsel
---------------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of Texas
authorized La Bota Development Company, et al., to employ
HughesWattersAskanase, LLP, as counsel.
HWA is expected to represent the Debtors in the Chapter 11
proceedings.
To the best of the Debtors' knowledge, HWA is a "disinterested
person" as that term is defined in Section 101(14) of the
Bankruptcy Code.
HWA can be reached at:
Wayne Kitchens, Esq.
E-mail: wkitchens@hwa.com
Steven Shurn, Esq.
E-mail: sshurn@hwa.com
Simon Mayer, Esq.
E-mail: smayer@hwa.com
HughesWattersAskanase, LLP
333 Clay Street, 29th Floor
Houston, Texas 77002
Tel: (713) 759-0818
Fax: (713) 759-6834
Sugar Land, Texas-based La Bota Development Company, Inc., filed
for Chapter 11 bankruptcy protection on May 3, 2010 (Bankr. S.D.
Texas Case No. 10-20376). The Company listed $50,000,001 to
$100,000,000 in assets and $10,000,001 to $50,000,000 in
liabilities.
LANE GORDON: Voluntary Chapter 11 Case Summary
----------------------------------------------
Debtor: Lane P. Gordon
9 Mountain View Drive
Framingham, MA 01701
Bankruptcy Case No.: 10-16326
Chapter 11 Petition Date: June 9, 2010
Court: United States Bankruptcy Court
District of Massachusetts (Boston)
Judge: Henry J. Boroff
Debtor's Counsel: Barry C. Richmond, Esq.
Law Office of Barry C. Richmond
210 Washington Street
Woburn, MA 01801
Tel: (781) 935-2143
E-mail: richmondlaw@hotmail.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 creditors together with its
petition.
The petition was signed by the Debtor.
LASK HOLDINGS: Voluntary Chapter 11 Case Summary
------------------------------------------------
Debtor: Lask Holdings, LLC
1032 Silvermine Road
New Canaan, CT 06840
Bankruptcy Case No.: 10-51309
Chapter 11 Petition Date: June 8, 2010
Court: U.S. Bankruptcy Court
District of Connecticut (Bridgeport)
Judge: Alan H.W. Shiff
Debtor's Counsel: Ellery E. Plotkin, Esq.
777 Summer Street, 2nd Floor
Stamford, CT 06901
Tel: (203) 325-4457
Fax: (203) 325-4376
E-mail: EPlotkinJD@aol.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
The Company did not file a list of creditors together with its
petition.
The petition was signed by Scott Kaluczky, member.
LAUREATE EDUCATION: Bank Debt Trades at 10% Off
-----------------------------------------------
Participations in a syndicated loan under which Laureate
Education, Inc., is a borrower traded in the secondary market at
90.13 cents-on-the-dollar during the week ended Friday, June 11,
2010, according to data compiled by Loan Pricing Corp. and
reported in The Wall Street Journal. This represents a drop of
1.13 percentage points from the previous week, The Journal
relates. The Company pays 325 basis points above LIBOR to borrow
under the facility. The bank loan matures on Aug. 17, 2014, and
carries Moody's B1 rating and Standard & Poor's B rating. The
debt is one of the biggest gainers and losers among 185 widely
quoted syndicated loans with five or more bids in secondary
trading for the week ended Friday.
Laureate Education, Inc., is based in Baltimore, Maryland, and
operates a leading international network of accredited campus-
based and online universities with 26 institutions in 15
countries, offering academic programs to about 311,000 students
through 74 campuses and online delivery. Laureate offers a broad
range of career-oriented undergraduate and graduate programs
through campus-based universities located in Latin America,
Europe, and Asia. Through online universities, Laureate offers
the growing population of non-traditional, working-adult students
the convenience and flexibility of distance learning to pursue
undergraduate, master's and doctorate degree programs in major
career fields including engineering, education, business, and
healthcare.
LENOX HILL: Moody's Reviews 'Ba1' Rating on $127 Mil. Bonds
-----------------------------------------------------------
Moody's has placed Lenox Hill Hospital's Ba1 rating on
$127 million of Series 2001 bonds on watchlist for possible
upgrade, in conjunction with the Hospital recently becoming a
member of the North Shore-Long Island Jewish Health System (rated
Baa1 with a stable outlook). Lenox Hill's Series 2001 bonds were
issued through the Dormitory Authority of the State of New York.
The relationship with North Shore-Long Island Jewish was finalized
in May 2010.
In the near term Moody's plan to review implications of Lenox Hill
becoming a member of the North Shore-Long Island Jewish Health
System on the Hospital's financial position, governance, and
senior leadership. Management reports that the relationship has
not resulted in any immediate change in the legal security for the
2001 bonds or a change in the Lenox Hill obligated group. Moody's
expect to conclude Moody's review of the rating within 90 days.
Key Indicators
Assumptions & Adjustments:
* First number reflects audit year ended December 31, 2008 for
Lenox Hill Hospital
* Second number reflects audit year ended December 31, 2009 for
Lenox Hill Hospital
* Investment returns normalized at 6% unless otherwise noted
* Inpatient admissions: 29,014; 28,344
* Total operating revenues: $651.3 million; $665.2 million
* Total debt outstanding: $178.0 million; $184.96 million
* Moody's-adjusted annual debt service coverage with normalized
investment income: 1.8 times; 1.7 times
* Days cash on hand: 82 days; 96 days
* Cash-to-debt: 79.3%; 92.3%
* Operating margin: -1.7%; -2.6%
* Operating cash flow margin: 5.5%; 4.1%
Rated Debt:
* Series 2001 Bonds: Ba1 on watchlist for possible upgrade
The last rating action with respect to Lenox Hill Hospital was on
June 24, 2009, when a municipal finance scale rating of Ba1 was
affirmed and the outlook was revised to negative from stable.
That rating was subsequently recalibrated to Ba1/negative on
May 7, 2010.
LINGHAM RAWLINGS: Voluntary Chapter 11 Case Summary
---------------------------------------------------
Debtor: Lingham Rawlings, LLC
26 Rockingham Lane
Oak Ridge, TN 37830
Bankruptcy Case No.: 10-32769
Chapter 11 Petition Date: June 8, 2010
Court: United States Bankruptcy Court
Eastern District of Tennessee (Knoxville)
Judge: Richard Stair Jr.
Debtor's Counsel: Keith L. Edmiston, Esq.
Suite 1100, BankEast Bldg.
607 Market Street
Knoxville, TN 37902
Tel: (865) 524-5353
Fax: (865) 974-9615
E-mail: kedmiston@ritlaw.com
Estimated Assets: $0 to $50,000
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 Sharon Power, chief manager.
LIONS GATE: Icahn Issues Open Letter to Firm's Board of Directors
-----------------------------------------------------------------
Carl C. Icahn issued the following open letter to the board of
directors of Lions Gate Entertainment Corp.:
CARL C. ICAHN
767 Fifth Avenue, 47th Floor
New York, New York 10153
June 11, 2010
Lions Gate Entertainment Corp.
2700 Colorado Avenue, Suite 200
Santa Monica, California 90404
Attention: Board of Directors
-----------------------------
Dear Members of the Board:
"As you know, the offer by my affiliates to purchase any and all
of Lions Gate's outstanding common shares for $7.00 in cash per
share is expected to close next Wednesday, June 16th. As I have
previously announced, we will not be extending the offer again. I
am writing to express my grave concern as a shareholder -- and, I
believe, as a soon to be much larger shareholder -- over your
apparent ambivalence regarding Lions Gate's fate. I am truly
mystified by some of your actions -- and your inaction -- in the
face of the abject failure of the current management team to
deliver value to shareholders, and I fear for the future of our
company.
As you have noted several times in communications to shareholders
(which I believe were designed to frighten them into not tendering
their shares into our offer), our purchase of only a small number
of shares at the conclusion of the offer would constitute an
"event of default" under Lions Gate's credit facilities, which in
turn could trigger "cross-defaults" with respect to over
$472 million of bond indebtedness. In fact, our purchase of even
the 3.7% of outstanding shares that were tendered into the offer
and not withdrawn as of our last announcement would already be
enough to trigger this domino effect which, unless your lenders
were to waive these defaults, could lead to the ultimate implosion
of the company. What I find to be the most egregious part of this
problem is the fact that it was created entirely by you -- had the
board not agreed to these controversial "poison put" provisions in
the first place, shareholders would not be in the dire situation
in which we now find ourselves.
As you have also noted, there can be no assurance that your
lenders will waive such defaults and they have thusfar been
unwilling to commit to do so. If these defaults were to be
triggered and you are unable to obtain the necessary waivers or an
alternative source of financing (a huge uncertainty, given the
current state of the debt markets), Lions Gate's assets may not be
sufficient to repay this debt in full. Under such circumstances,
Lions Gate may find it necessary to pursue a voluntary bankruptcy
filing. In addition, under certain circumstances, lenders,
bondholders or other creditors may file an involuntary petition
for bankruptcy against Lions Gate. As one of the largest -- and,
I believe, soon to be the largest - shareholder of Lions Gate, I
am extremely concerned about this possible eventuality and I would
imagine that other shareholders are similarly afraid of having
their equity wiped out. That being the case, I find it amazing --
and a frightening dereliction of your fiduciary duties -- that you
have ignored our offers, made publicly on several occasions, to
discuss with the board the terms of a possible bridge facility
that we would be prepared to provide -- without a commitment fee -
- as a preemptive measure in order to permit Lions Gate to
refinance its debt in the event of any such defaults.
Even if your lenders were willing to waive any defaults or to
amend the offensive provisions of your credit agreements (thus
averting the "cross-default" scenario), there is still the real
possibility that our purchase of shares in the offer could result
in events of default under the company's bond indentures, under
which there is currently outstanding over $472 million of debt.
Those agreements permit bondholders to require Lions Gate to
repurchase their bonds at par -- and in certain circumstances also
to pay a "make whole premium" -- in the event of a "change in
control" (which is defined to include any person or group becoming
the owner of more than 50% of Lions Gate's outstanding shares).
Again, the sting of this landmine buried in the company's
indentures is exacerbated by the knowledge that the board had it
fully within its power to avoid this problem entirely -- by not
agreeing to these egregious provisions in the first instance.
Although we suspect that you will continue burying your heads in
the sand with respect to this impending disaster, we advise you
again that we stand ready to begin discussions with you
immediately regarding the terms of a bridge facility. We expect
that such bridge facility would be required to be repaid through a
combination of new debt and the proceeds of the sale of Lions Gate
equity through a rights offering in which all Lions Gate
shareholders would be invited to participate, thus de-levering the
company. As we have stated before, we would be willing to
backstop any such rights offering. Rest assured that if our
shares are devalued as a result of your inattention to this
matter, we will seek to hold you personally responsible to the
maximum extent permitted under applicable law.
I have given this matter a great deal of thought and I must
confess that I remain confused as to why you refuse to deal with
the ticking time bomb sitting in your debt documents. Is it
possibly because you refuse to believe that the number of shares
tendered in our offer will be large enough to cause a default? It
seems to me that you refused to believe the British Columbia
Securities Commission would strike down your poison pill, but you
were wrong. It seems also that you refused to believe our
acquisition of control of Lions Gate would be found by the
Canadian government to be of net benefit to Canada, but you were
wrong again. You have made much in your public disclosures of the
fact that only under 4% of the outstanding shares have been
tendered to us thusfar. As you are well aware, however, the final
major condition to our offer -- receipt of approval of our offer
by the Minister of Canadian Heritage under the Investment Canada
Act -- was only recently satisfied. In addition, as you are also
well aware, the bulk of shares are typically not tendered until
the last day or two of an offer. These facts, combined with the
fact that our offer expires on June 16 and there will be no
further extensions, leads us to believe that a substantial number
of shares will be tendered to us. Consistent with this view, we
note the statement yesterday by Mark Cuban, the holder of 5.4% of
Lions Gate's outstanding shares, that he thinks he will tender his
shares into our offer.
We also continue to be concerned that the board may engage in an
inappropriate defensive acquisition or other transaction in an
attempt either to thwart our offer or to dilute our position
following the expiration of the offer. We will not sit idly by if
you attempt to employ inappropriate defensive tactics. Given
recent history, we are observing your actions with a microscope
and will continue to do so. We will challenge any proposed
transaction that we perceive to be abusive of shareholder rights
or otherwise disadvantageous to Lions Gate, and will seek to hold
the directors personally liable for any breach of your fiduciary
duties or actions which oppress Lions Gate shareholders or serve
simply to entrench yourselves. In addition, we will not hesitate
to enforce our rights against any third party that attempts to
tortiously interfere with our offer by entering into an
inappropriate defensive transaction with Lions Gate. We believe
that in these circumstances any transaction effected outside of
the ordinary course of business should not be unilaterally decreed
by the board but rather should be put to a vote of ALL
shareholders.
Lions Gate's statements on June 4 in response to our tender offer
were completely disingenuous and convinced me further that the
board has become dangerously detached from reality. In
recommending that shareholders reject our offer, you stated that
Lions Gate "continues to successfully execute its business
strategy," implying that the company is on the right road to
profitability. However, it seems to me more like Lions Gate is
racing down the wrong road at breakneck speed towards a precipice.
On February 4, 2010 (the last trading day prior to the first date
in 2010 that we resumed purchasing Lions Gate common shares), the
closing price of the company's shares was $4.85-this represents a
decline of over 50% from where Lions Gate's shares were trading
five years ago. And how has the board held this management team
accountable for presiding over a period during which the company's
share price has been cut in half? By lavishing them with
exorbitant salaries, bonuses, options, perquisites and golden
parachutes! By my estimation, top management was rewarded during
this period of decline with total compensation valued at well over
$50 million. As if that were not enough, the board also recently
saw fit to further protect management by placing $16 million in a
trust to fund severance obligations that would purportedly be due
to them should their employment be terminated in connection with a
change in control. What are your plans to protect the value of
the shareholders' equity in the event that the company is forced
into bankruptcy as a result of the debt defaults discussed above?
In addition, the anecdotal evidence regarding the overspending in
Lions Gate's corporate suite is the stuff of legend. A cursory
review of recent press reports yields many references to
management's lavish new offices, their huge salaries and more than
a few mentions of the Bentley driven by CEO, Jon Feltheimer.
Sadly, however, one is hard pressed to find the stories detailing
how management is committed to increasing earnings per share by
attempting to boost revenues and cut costs. Reported "general and
administrative" expenses (which includes salary and overhead)
increased from under $70 million for the fiscal year ended
March 31, 2006, to over $180 in 2010. As a shareholder, I'm
forced to ask how much longer this board of directors will allow
the party in the management suite to continue. How long can
management continue to claim "record performance" while cash flow
remains anemic and the stock price remains in decline? Since the
board is clearly unwilling to tell the Emperor he wears no
clothes, it is left up to the shareholders to take action. We
therefore intend to conduct a proxy solicitation to seek to
replace the board with our nominees at the upcoming annual general
meeting of shareholders. We are hopeful that a newly elected
board will act expeditiously to replace management and hold the
new team accountable for performance moving forward.
Sincerely yours
CARL C. ICAHN
The Icahn Group's offer to purchase any and all of Lions Gate's
outstanding common shares for $7.00 in cash per share will expire
at 8:00 p.m. (New York time) on June 16, 2010. At that time,
provided that all remaining conditions to the offer are satisfied,
the Icahn Group will promptly take up and pay for all shares that
have been tendered. There will not be another extension of the
offer, nor will the price be changed. However, there will be a
subsequent offering period commencing on June 17, 2010, and ending
on June 30, 2010 in order to permit additional tenders. The price
paid to shareholders tendering during the subsequent offering
period will be the same as that in the offer. Shareholders with
questions about the tender offer may call D.F. King & Co., Inc.,
the Information Agent, toll-free at 800-859-8511 (banks and
brokers call 212-269-5550).
LNR PROPERTY: Moody's Reviews 'Ca' Corporate for Upgrade
--------------------------------------------------------
Moody's placed LNR Property Corporation's senior secured bank
credit facility and corporate family ratings on review for
possible upgrade following the company's announcement that it
intends to recapitalize its business. Moody's notes that the
upgrades would be multiple notches if LNR is successful in its
plans. Moody's also assigned a (P)B1 senior secured term loan
rating, with a stable outlook, to the proposed $445 million
secured term loan LNR expects to obtain as part of its
recapitalization.
As part of the recapitalization, existing shareholders, and
existing holding company note holders, will participate in a
$400 million Equity Rights Offering. Additionally, LNR has
engaged Goldman Sachs and Bank of America Merrill Lynch as
arrangers for a $445 million 1st lien senior secured term loan.
The proceeds of the rights offering and the new term loan, in
addition to cash on hand, will be used to refinance LNR's existing
$868 million senior secured term loan and cancel its $150 million
revolver. In addition, LNR's existing $420 million holding
company notes will be converted to equity.
The review for upgrade and the prospective (P)B1 senior secured
rating reflects that should the recapitalization be completed as
presented by the company, Moody's believes LNR's balance sheet,
along with its business transition to a more fee-based model in
recent years, will be simpler and more transparent. The
recapitalization will significantly reduce LNR's leverage metrics
from current levels, and will eliminate much of the company's
liquidity risk over the near-term. In addition, Moody's expects
that the company's current and expected strategic business model
will not be altered significantly.
These ratings were placed under review for upgrade:
* LNR Property Corporation -- senior secured credit facility at
Ca; corporate family rating at Ca
This prospective rating was assigned:
* LNR Property Corporation -- senior secured term loan at (P)B1
Moody's last rating action with respect to LNR Property
Corporation was on November 17, 2009 when Moody's downgraded the
ratings to Ca from B3. The rating outlook was negative.
LNR Property Corporation is a real estate investment and
management company headquartered in Miami Beach, Florida, USA.
LNR Property Corporation's ratings were assigned by evaluating
factors Moody's believe are relevant to the credit profile of the
issuer, such as i) the business risk and competitive position of
the company versus others within its industry, ii) the capital
structure and financial risk of the company, iii) the projected
performance of the company over the near to intermediate term, and
iv) management's tract record and tolerance for risk. These
attributes were compared against of the issuers both within and
outside of LNR's core industry and the company's ratings are
believed to be comparable to those of other issuers of similar
credit risk.
LUCKY CHASE: Ch. 11 Trustee Can Use Cash Collateral until July 2
----------------------------------------------------------------
The Hon. Robert A. Mark of the U.S. Bankruptcy Court for the
Southern District of Florida, in an eighth interim order,
authorized Kenneth A. Welt, Chapter 11 trustee in the Chapter 11
case of Lucky Chase II, LLC, to use cash collateral until July 2,
2010.
Federal Deposit Insurance Corporation, as receiver for AmTrust
Bank consented to the trustee's use of the cash collateral to fund
the operation and management of the Debtor's property, provided
that the trustee will not exceed 10% of the line item amounts set
forth in the budget.
As adequate protection for any diminution in value of the lenders'
collateral, the Debtors will grant FDIC replacement liens on all
of the Debtor's postpetition assets.
The trustee must also maintain all necessary insurance, including,
without limitation, life, fire, hazard, comprehensive, public
liability, and worker's compensation as may be currently in
effect,
and obtain additional insurance in an amount as is appropriate for
the business in which the Debtor is engaged, naming AmTrust as an
additional insured and loss payee with respect thereto.
A further hearing on the trustee's continued authority to use cash
collateral will be held on June 29, 2010, at 2:00 p.m. at the
Claude Pepper Federal Building, 51 Southwest First Avenue,
Courtroom 1406, Miami, Florida.
About Lucky Chase II, LLC
Headquartered in Pittsburgh, Pennsylvania, Lucky Chase II, LLC,
operates a single-asset, real estate company. The Company filed
for Chapter 11 on April 29, 2009 (Bankr. S.D. Fla. Case No.
09-18087). Arthur J. Spector, Esq., represents the Debtor in its
restructuring effort. The Debtor listed assets and debts between
$10 million and $50 million each.
M. A. GONZALEZ: Case Summary & 3 Largest Unsecured Creditors
------------------------------------------------------------
Debtor: M. A. Gonzalez Properties, LLC
1600 St. Charles Avenue
New Orleans, LA 70130
Bankruptcy Case No.: 10-12035
Chapter 11 Petition Date: June 9, 2010
Court: U.S. Bankruptcy Court
Eastern District of Louisiana (New Orleans)
Judge: Elizabeth W. Magner
Debtor's Counsel: Paul Douglas Stewart Jr., Esq.
Stewart Robbins & Brown, LLC
P.O. Box 66498
Baton Rouge, LA 70896-6498
Tel: (225) 231-9998
Fax: (225) 709-9467
E-mail: dstewart@stewartrobbins.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
A copy of the Company's list of 3 largest unsecured creditors
filed together with the petition is available for free
at http://bankrupt.com/misc/laeb10-12035.pdf
The petition was signed by Mario A. Gonzalez, manager.
MADISON 124: Voluntary Chapter 11 Case Summary
----------------------------------------------
Debtor: Madison 124 Partners, LLC
9465 MacArthur Boulevard
Oakland, CA 94605
Bankruptcy Case No.: 10-46646
Chapter 11 Petition Date: June 10, 2010
Court: U.S. Bankruptcy Court
Northern District of California (Oakland)
Judge: Leslie J. Tchaikovsky
Debtor's Counsel: Alan E. Walcher, Esq.
Law Offices of Barry K. Rothman
1901 Avenue of the Stars #370
Los Angeles, CA 90067
Tel: (310) 557-0062
E-mail: bkr@bkrlegal.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
The list of unsecured creditors filed together with its petition
does not contain any entries.
The petition was signed by Curtis Eisenberger, managing member.
MARK FELTS: Case Summary & 20 Largest Unsecured Creditors
---------------------------------------------------------
Joint Debtors: Mark Richard Felts
Rita B. Felts
1595 Harbor Drive
Marathon, FL 33050
Bankruptcy Case No.: 10-26347
Chapter 11 Petition Date: June 10, 2010
Court: U.S. Bankruptcy Court
Southern District of Florida (Miami)
Judge: Laurel M. Isicoff
Debtor's Counsel: James A. Poe, Esq.
9500 S Dadeland Boulevard #610
Miami, FL 33156
Tel: (305) 670-3950
Fax: (305) 670-3951
E-mail: jpoe@jamesalanpoepa.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
According to the schedules, the Debtors say that assets total
$3,121,776 while debts total $2,830,907.
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/flsb10-26347.pdf
The petition was signed by the Joint Debtors.
MARK GINSBURG: Barry E. Mukamal Named as Chapter 11 Examiner
------------------------------------------------------------
Donald F. Walton, the U.S. Trustee for Region 21, appointed Barry
E. Mukamal as Chapter 11 Examiner in the bankruptcy case of Mark
J. Ginsburg.
As reported in the Troubled Company Reporter on April 14, 2010,
creditors Steven Cook, Gilda Burstein, Scott Kranz, and Susan
Enis asked the Court to authorize them to seek appointment of a
receiver for Mark J. Ginsburg's estate.
Steven Cook, et al., are each shareholders of Nationwide
Laboratory Services, Inc., who collectively control 50% of the
stock of Nationwide.
Steven Cook, et al., said that the Debtor mismanaged Nationwide
fka Royco, Inc. and exposed the company to ruinous litigation
accusing the Debtor, among others, of fraud, misrepresentation,
tortious interference with business relationships, violations of
non-competition agreements, and employment matters.
Lighthouse Point, Florida-based Mark J. Ginsburg, aka Mark
Ginsburg and Dr. Mark Ginsburg, filed for Chapter 11 bankruptcy
protection on February 9, 2010 (Bankr. S.D. Fla. Case No. 10-
13056). Chad P. Pugatch, Esq., who has an office in Ft.
Lauderdale, Florida, assists the Company in its restructuring
effort. The Company has assets of $16,675,693 and total debts of
$47,823,735.
MARK PHILLIPS: Voluntary Chapter 11 Case Summary
------------------------------------------------
Debtor: Mark L. Phillips
aka Mark Lee Phillips
12 Winthrop Street
Provincetown, MA 02657
Bankruptcy Case No.: 10-16332
Chapter 11 Petition Date: June 9, 2010
Court: United States Bankruptcy Court
District of Massachusetts (Boston)
Judge: William C. Hillman
Debtor's Counsel: Alex M. Rodolakis, Esq.
Gilman, McLaughlin & Hanrahan LLP
297 North Street
Hyannis, MA 02601
Tel: (508) 778-1100 Ext: 10
Fax: (508) 778-1800
E-mail: amr@gilmac.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 creditors together with its
petition.
The petition was signed by the Debtor.
MCINTOSH BANCSHARES: Posts $7.9 Million Net Loss in Q1 2010
-----------------------------------------------------------
McIntosh Bancshares, Inc., filed its quarterly report on Form
10-Q, reporting a net loss of $7.9 million on $2.2 million of net
interest income (before provision for loan losses) for the three
months ended March 31, 2010, compared with a net loss of
$1.4 million on $2.8 million of net interest income (before
provision for loan losses) for the same period ended March 31,
2009.
The Company's balance sheet as of March 31, 2010, showed
$394.2 million in assets, $384.1 million of liabilities, and
$10.0 million of shareholders' equity.
As of March 31, 2010, the Bank remains under capitalized.
A full-text copy of the quarterly report is available for free at:
http://researcharchives.com/t/s?64b0
As reported in the Troubled Company Reporter on April 1,
2010, Porter Keadle Moore, LLP, in Atlanta, Ga., expressed
substantial doubt about the Company's ability to continue as a
going concern after auditing the Company's financial statements
for the year ended December 31, 2009. The independent auditors
noted that McIntosh State Bank has suffered recurring losses, and
that at December 31, 2009, the Bank's capital ratios are below the
required levels as established by regulation.
Jackson, Ga.-based McIntosh Bancshares, Inc. operates as the bank
holding company for McIntosh State Bank that provides commercial
banking products and services to individuals and corporate
customers in Georgia.
METRO-GOLDWYN-MAYER: Bank Debt Trades at 55% Off
------------------------------------------------
Participations in a syndicated loan under which Metro-Goldwyn-
Mayer, Inc., is a borrower traded in the secondary market at 44.91
cents-on-the-dollar during the week ended Friday, June 11, 2010,
according to data compiled by Loan Pricing Corp. and reported in
The Wall Street Journal. This represents an increase of 1.27
percentage points from the previous week, The Journal relates.
The Company pays 275 basis points above LIBOR to borrow under the
facility, which matures on April 8, 2012. The debt is not rated
by Moody's and Standard & Poor's. The debt is one of the biggest
gainers and losers among 185 widely quoted syndicated loans with
five or more bids in secondary trading for the week ended Friday.
Metro-Goldwyn-Mayer, Inc., is an independent, privately held
motion picture, television, home video, and theatrical production
and Distribution Company. The Company owns the world's largest
library of modern films, comprising approximately 4,000 titles,
and over 10,400 episodes of television programming. An investor
consortium, comprised of Providence Equity Partners, TPG Capital,
Sony Corporation of America, Comcast Corporation, DLJ Merchant
Banking Partners and Quadrangle Group, owns MGM.
As reported by the Troubled Company Reporter on Sept. 30, 2009,
The New York Post, citing multiple sources, said discussions
between debt holders and equity owners on a restructuring of
Metro-Goldwyn-Mayer's massive debt load have begun on a
contentious note, with both sides threatening to force MGM into
bankruptcy in order to gain leverage and extract better terms from
the other.
Bloomberg also said that MGM is in talks to skip interest payments
and restructure $3.7 billion in bank loans. MGM asked creditors
to waive $12 million monthly interest payments until Feb. 15,
2010.
MIDWEST BANC: NASDAQ to Delist Common And Preferred Stock
---------------------------------------------------------
The NASDAQ Stock Market said it will delist the common and
preferred stock of Midwest Banc Holdings Inc., which stock was
suspended on May 26, 2010 and has not traded on NASDAQ since that
time.
NASDAQ will file a Form 25 with the Securities and Exchange
Commission to complete the delisting. The delisting becomes
effective ten days after the Form 25 is filed. For news and
additional information about the company, including the basis for
the delisting and whether the company's securities are trading on
another venue, please review the company's public filings or
contact the company directly.
Midwest Banc Holdings, Inc. is a community-based bank holding
company headquartered in Melrose Park, Illinois. Through its
wholly owned subsidiaries, the Company provides a wide range of
services, including traditional banking services, personal and
corporate trust services, and insurance brokerage and retail
securities brokerage services. The Company's principal operating
subsidiary is Midwest Bank and Trust Company, an Illinois state
bank that operates 26 banking centers in the Chicago metropolitan
area.
The Company's balance sheet as of March 31, 2010, showed
$3.182 billion in assets and $3.232 billion of liabilities, for a
stockholders' deficit of $49.5 million.
* * *
As reported in the Troubled Company Reporter on April 6, 2010,
PricewaterhouseCoopers LLP, in Chicago, expressed substantial
doubt about the Company's ability to continue as a going concern.
The independent auditors noted that the Company has experienced
significant net losses during 2008 and 2009, is undercapitalized
at December 31, 2009, does not have sufficient liquidity to meet
the potential demand for all amounts due under certain lending
arrangements with its primary lender upon expiration of a related
forbearance agreement that expires on March 31, 2010, and its
ability to raise sufficient new equity capital in a timely manner
is uncertain.
MIGUEL LOPEZ: Case Summary & 12 Largest Unsecured Creditors
-----------------------------------------------------------
Debtor: Miguel Lopez
aka Miguel Arias Lopez
13373 Astoria Street
Sylmar, CA 91342
Bankruptcy Case No.: 10-16858
Chapter 11 Petition Date: June 8, 2010
Court: U.S. Bankruptcy Court
Central District of California (San Fernando Valley)
Judge: Geraldine Mund
Debtor's Counsel: Eric Bensamochan, Esq.
16861 Ventura Boulevard, Suite 300
Encino, CA 91436
Tel: (818) 574-5740
Fax: (818) 961-0138
E-mail: eric@easy-law.net
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
A copy of the Debtor's list of 12 largest unsecured creditors
filed together with the petition is available for free
at http://bankrupt.com/misc/cacb10-16858.pdf
The petition was signed by the Debtor.
MONEYGRAM INT'L: Inks Agreement with Sr. VP Jean C. Benson
----------------------------------------------------------
MoneyGram International entered into an agreement dated June 3,
2010, with Jean C. Benson, Senior Vice President and Controller,
to provide a one-time retention bonus of $50,000 to Ms. Benson for
the additional interim duties she has been assigned during the
Company's search for a new chief financial officer.
The bonus is payable within ten business days following March 31,
2011, provided Ms. Benson continues to perform at a performance
level consistent with her past performance and complies with the
Company's policies, practices and procedures. If Ms. Benson
resigns or is terminated for cause on or before March 31, 2011,
she will not receive any portion of the bonus. If Ms. Benson's
employment terminates for any other reason on or before March 31,
2011, Ms. Benson will receive the bonus.
About MoneyGram International
Minneapolis, Minnesota, MoneyGram International (NYSE:MGI) --
http://www.moneygram.com/-- offers more control and more choices
for people separated by distance or with limited bank
relationships to meet their financial needs. MoneyGram helps
consumers to pay bills quickly and safely send money around the
world in as little as 10 minutes. Its global network is comprised
of 190,000 agent locations in nearly 190 countries and
territories. MoneyGram's convenient and reliable network includes
retailers, international post offices and financial institutions.
At March 31, 2010, the company's balance sheet showed $5.66
billion total assets, $5.66 billion total liabilities, and $896.0
total mezzanine equity for a 896.0 million stockholders' deficit.
* * *
According to the Troubled Company Reporter on April 27, 2010,
Moody's Investors Service affirmed the B1 corporate family rating
for MoneyGram International Inc and revised the rating outlook to
stable from negative. The revision of the outlook to stable is
based on solid performance of the money transfer business amidst
the global recession and the stabilization of the Financial Paper
Products segment.
MOVIE GALLERY: 5 Landlords Want Lift Stay to Pursue Remedies
------------------------------------------------------------
In separate requests, GAM Venture One, LLC, Windsor Oaks West
Parcel 3, LLC, Fred Meyers Stores, Smith's Food and Drug Centers,
Inc., and Four Bears Holdings Limited Partnership ask the Court to
lift the automatic stay imposed by Section 362 of the Bankruptcy
Code.
GAM Venture One and Four Bears wanted the stay lifted so they may
pursue all of their rights and remedies under separate leases
with Hollywood Entertainment Corporation, including their right
to terminate the leases, regain possession of the Leased Premises
and allow them to deliver possession of the Leased Premises to a
New Tenant.
Windsor Oaks, on the other hand, asked the Court to lift the
automatic stay because it has not been assured of property
payment of the arrearage and future performance of the payment
terms of its Deed of Lease with HEC. Moreover, Windsor said that
HEC is not permitted to enforce its contractual remedies under
the Deed of Lease for Windsor's property as it can cause Windsor
to suffer irreparable damage and loss.
For the Debtors' failure to pay their March 2010 rent despite
their assurance that payment is under process, Fred Meyer and SFC
wanted the stay lifted to terminate two leases with Hollywood
Video, Inc., including the right to evict HVI from the premises
located at Coeur d'Alene, Idaho and Bountiful, Utah. Fred Meyer
contended that the Debtors' failure to pay the rent has violated
the cash collateral order and breached their representations to
the Court and to Fred Meyer.
Debtors Object
The Debtors informed the Court that they have paid each Landlord
their March 2010 rent obligations by overnight delivery, on
March 19, 2010. Accordingly, the Debtors ask the Court to deny
the stay motions filed by each Landlord.
Accordingly, GAM Venture One and Windsor Oaks withdrew their
motions for stay. Fred Meyer and SFC also withdrew their motion
for stay, as well as their motion to compel the Debtors to pay
Postpetition Rent and their joinder to a similar motion filed by
Site Woodstock, LLC.
About Movie Gallery
Based in Wilsonville, Ore., Movie Gallery, Inc., is the second
largest North American video and game rental company, operating
stores in the U.S. and Canada under the Movie Gallery, Hollywood
Video and Game Crazy brands.
Movie Gallery first filed for Chapter 11 on Oct. 16, 2007 (Bankr.
E.D. Va. Case Nos. 07-33849 to 07-33853). Kirkland & Ellis LLP
and Kutak Rock LLP represented the Debtors. The Company emerged
from bankruptcy on May 20, 2008, with private-investment firms
Sopris Capital Advisors LLC and Aspen Advisors LLC as its
principal owners. William Kaye was appointed plan administrator
and litigation trustee.
Movie Gallery returned to Chapter 11 protection on February 3,
2009 (Bankr. E.D. Va. Case No. 10-30696). Attorneys at
Sonnenschein Nath & Rosenthal LLP and Kutak Rock LLP represent the
Debtors in their second restructuring effort. Kurtzman Carson
Consultants serves as claims and notice agent.
Bankruptcy Creditors' Service, Inc., publishes Movie Gallery
Bankruptcy News. The newsletter provides gavel-to-gavel coverage
of the Chapter 11 proceedings undertaken by Movie Gallery Inc. and
its various affiliates. (http://bankrupt.com/newsstand/or
215/945-7000).
MOVIE GALLERY: Gets More Time to File Liquidation Plan
------------------------------------------------------
Judge Douglas O. Tice Jr. of the U.S. Bankruptcy Court for the
Eastern District of Virginia extended the Debtors' exclusive
periods to file a Chapter 11 plan through July 31, 2010, and to
solicit acceptances of that Plan through September 30, 2010.
As previously reported, the Debtors informed the Court that their
recent decision to proceed with a liquidation has resulted in the
need to shift their focus to the development of an orderly and
efficient liquidation process and corresponding Plan of
Liquidation.
The Debtors said they anticipate filing their Plan of Liquidation
within the time agreed to in the term sheet for the Joint Plan of
Liquidation. An extension of the Exclusive Filing Period beyond
the time set forth in the Term Sheet is intended only to allow
for any extension that may be agreed to by the applicable
constituencies in the event additional time is necessary to
complete the negotiation of a consensual Plan of Liquidation,
they added.
The Debtors pointed out that if the Exclusive Periods are allowed
to expire in the midst of their formulation of a consensual plan
and the subsequent confirmation process, there is a risk that
what has been a consensual and swiftly moving-process could be
derailed, to the detriment of their estates.
The Debtors, hence, asked the Court to extend their exclusive
periods to file a plan and solicit acceptances of that plan.
About Movie Gallery
Based in Wilsonville, Ore., Movie Gallery, Inc., is the second
largest North American video and game rental company, operating
stores in the U.S. and Canada under the Movie Gallery, Hollywood
Video and Game Crazy brands.
Movie Gallery first filed for Chapter 11 on Oct. 16, 2007 (Bankr.
E.D. Va. Case Nos. 07-33849 to 07-33853). Kirkland & Ellis LLP
and Kutak Rock LLP represented the Debtors. The Company emerged
from bankruptcy on May 20, 2008, with private-investment firms
Sopris Capital Advisors LLC and Aspen Advisors LLC as its
principal owners. William Kaye was appointed plan administrator
and litigation trustee.
Movie Gallery returned to Chapter 11 protection on February 3,
2009 (Bankr. E.D. Va. Case No. 10-30696). Attorneys at
Sonnenschein Nath & Rosenthal LLP and Kutak Rock LLP represent the
Debtors in their second restructuring effort. Kurtzman Carson
Consultants serves as claims and notice agent.
Bankruptcy Creditors' Service, Inc., publishes Movie Gallery
Bankruptcy News. The newsletter provides gavel-to-gavel coverage
of the Chapter 11 proceedings undertaken by Movie Gallery Inc. and
its various affiliates. (http://bankrupt.com/newsstand/or
215/945-7000).
MOVIE GALLERY: Lease Decision Period Extended Until Aug. 31
-----------------------------------------------------------
Bankruptcy Judge Douglas O. Tice Jr. extended the period within
which Movie Gallery Inc. and its units must assume or reject
unexpired leases of non-residential property to August 31, 2010.
An objection filed by Walker Kennedy, LLC, has been resolved by
agreement among the Debtors, Walker Kennedy and Great American.
Prior to the Court's Order, Inland Commercial Property Management
informed the Court that it withdrew its objection to the Debtors'
motion to extend their Lease Decision Period without prejudice.
About Movie Gallery
Based in Wilsonville, Ore., Movie Gallery, Inc., is the second
largest North American video and game rental company, operating
stores in the U.S. and Canada under the Movie Gallery, Hollywood
Video and Game Crazy brands.
Movie Gallery first filed for Chapter 11 on Oct. 16, 2007 (Bankr.
E.D. Va. Case Nos. 07-33849 to 07-33853). Kirkland & Ellis LLP
and Kutak Rock LLP represented the Debtors. The Company emerged
from bankruptcy on May 20, 2008, with private-investment firms
Sopris Capital Advisors LLC and Aspen Advisors LLC as its
principal owners. William Kaye was appointed plan administrator
and litigation trustee.
Movie Gallery returned to Chapter 11 protection on February 3,
2009 (Bankr. E.D. Va. Case No. 10-30696). Attorneys at
Sonnenschein Nath & Rosenthal LLP and Kutak Rock LLP represent the
Debtors in their second restructuring effort. Kurtzman Carson
Consultants serves as claims and notice agent.
Bankruptcy Creditors' Service, Inc., publishes Movie Gallery
Bankruptcy News. The newsletter provides gavel-to-gavel coverage
of the Chapter 11 proceedings undertaken by Movie Gallery Inc. and
its various affiliates. (http://bankrupt.com/newsstand/or
215/945-7000).
MSJ INVESTMENT: To Fully Pay Unsecured Claims from Plan Fund
------------------------------------------------------------
The Hon. James M. Marlar of the U.S. Bankruptcy Court for the
District of Arizona will consider at a hearing on June 21, 2010,
at 10:15 a.m., approval of a Disclosure Statement explaining MSJ
Investment Properties, LLC, and P&G Investment Properties, Inc.'s
Plan of Reorganization. The hearing will be held at the Hearing
Room 329, 38 S. Scott, Ave., Tucson, Arizona. Objections, if any,
are due 7 days prior to the hearing date.
The Debtors will begin soliciting votes on the Plan following
approval of the adequacy of the information in the Disclosure
Statement.
According to the Disclosure Statement, the Plan proposes that,
upon confirmation, ownership of the assets of the Chapter 11
estate be vested in the Debtors, and the Debtors will continue to
operate the hotel property under the direction of the individuals
in control of the Debtors during the administration of the case.
This will continue, at least until the unsecured claims in Class 5
have been paid in full.
On the Effective Date, the Reorganized Debtors will establish a
Plan Fund consisting of a separate, segregated interest-bearing
deposit account, into which the Debtors will deposit funds for
distribution to Class 5 claimants. The Plan Fund will be funded
initially from all cash funds in the Debtors possession on the
Effective Date.
Holders of general unsecured Claims will be paid in full, in cash,
in semi-annual installments in a pro rata amount from the Plan
Fund, together with interest thereon at the federal judgment rate
in effect from time to time.
The existing shareholder of the Debtors will not receive any
distribution on account of his interest unless and until all sums
due in Classes 1, 2 and 5 are paid in full pursuant to the Plan.
A full-text copy of the Disclosure Statement is available for free
at http://bankrupt.com/misc/MSJINVESTMENT_DS.pdf
The Debtors are represented by:
Scott D. Gibson, Esq.
Kristen M. Green, Esq.
E-mail: ecf@gnglaw.com
Gibson, Nakamura & Green, P.L.L.C.
2329 N. Tucson Blvd.
Tucson, AZ 85716
About MSJ Investment Properties
Oro Valley, Arizona-based MSJ Investment Properties, L.L.C., filed
for Chapter 11 bankruptcy protection on February 12, 2010 (Bankr.
D. Ariz. Case No. 10-03643). The Company estimated its assets and
liabilities at $1,000,001 to $100,000,000.
NAVISTAR INT'L: Posts $43 Million Net Income for April 30 Quarter
-----------------------------------------------------------------
Navistar International Corporation filed its quarterly report on
Form 10-Q, showing $43 million net income on $2.7 billion sales
and revenues for the three months ended April 30, 2010, compared
with $12 million net income on $2.8 billion sales and revenues for
the same period a year ago.
The company listed $8.9 billion in total asset and $10.1 billion
in total liabilities, for a $1.2 billion total stockholders'
deficit.
A full-text copy of the company's Form 10-Q is available for free
at http://ResearchArchives.com/t/s?64b8
A full-text copy oft he company's amended Form 10-Q is available
for free at http://ResearchArchives.com/t/s?64ba
A full-text copy of the company's earnings release is available
for free at http://ResearchArchives.com/t/s?64b9
About Navistar International
Navistar International Corporation (NYSE: NAV) --
http://www.Navistar.com/-- is a holding company whose
subsidiaries and affiliates subsidiaries produce International(R)
brand commercial and military trucks, MaxxForce(R) brand diesel
engines, IC Bus(TM) brand school and commercial buses, Monaco RV
brands of recreational vehicles, and Workhorse(R) brand chassis
for motor homes and step vans. It also is a private-label
designer and manufacturer of diesel engines for the pickup truck,
van and SUV markets. The company also provides truck and diesel
engine parts and service. Another affiliate offers financing
services.
The Company's balance sheet at Jan. 31, 2010, showed total assets
of $9.12 billion and total liabilities of $10.74 billion,
resulting in a stockholders' deficit of $1.62 billion.
* * *
As reported by the Troubled Company Reporter on March 22, 2010,
Fitch Ratings revised Navistar's and Navistar Financial Corp.'s
Rating Outlooks to Positive from Negative and affirmed the
companies' long-term Issuer Default Ratings at 'BB-'. The Outlook
revisions are driven by improvement in the financial profile of
NFC following the signing of an operating agreement with GE
Capital and by NAV's financial performance in the past year.
Historically, Fitch had concerns with NFC's funding,
capitalization, and asset quality performance, but they have been
eliminated or reduced with the new agreement with GECC.
According to the TCR on March 11, 2010, Moody's Investors Service
maintained its B1 long-term rating, SGL-2 Speculative Grade
Liquidity rating and stable outlook for Navistar following the
announcement that GE Capital will become the preferred provider of
retail financing in support of Navistar's truck and bus sales in
the US. Moody's said Navistar's captive finance operation,
Navistar Financial Corporation, should be relieved of the capital
and liquidity burden necessary to support new retail and lease
originations. In addition, GE Capital's stronger balance sheet
and superior capital market access relative to that of NFC, should
improve the availability of the financing that can be offered to
retail purchasers of Navistar equipment.
According to the TCR on January 28, 2010, Standard & Poor's
Ratings Services said it revised its outlook on Navistar and
related entities to stable from negative and affirmed its 'BB-'.
NEC HOLDINGS: National Envelope Files for Chapter 11
----------------------------------------------------
National Envelope Corporation and its affiliates on June 10 filed
voluntary petitions under Chapter 11 of the Bankruptcy Code. The
Company has taken this action to implement a financial
restructuring that will provide the flexibility and support to
complete the operational restructuring already underway.
National Envelope expects to continue to operate in the normal
course of business during the Chapter 11 reorganization process.
All of the company's facilities are open and continuing to serve
customers as usual.
Stephen Gawrylewski, Chief Restructuring Officer/ Interim CEO for
the Company, said: "The strategic reorganizing of National
Envelope is well underway. We have been constrained by our
capital structure and by the unprecedented economic slowdown. We
intend to use the court-supervised Chapter 11 process to develop
and implement a new capital structure that will optimize the
financial benefits of the operating restructuring currently
underway. Fortunately, the fundamentals of our business remain
strong and provide an excellent foundation for the future. We
expect that National Envelope will emerge from its Chapter 11
reorganization well-positioned for profitable growth."
According to Bloomberg, National Envelope filed for Chapter 11
after failing to land a buyer quickly enough to suit the secured
lenders. The Company blamed its financial problems on the "global
recession" and rising postal rates that reduced mail volume.
NEC also said more consumers are paying bills electronically.
About National Envelope Corporation
Uniondale, NY based National Envelope Corporation is the largest
manufacturer of envelopes in the world with 14 manufacturing
facilities and 2 distribution centers and approximately 3,500
employees in the U.S. and Canada. The company is an environmental
leader in the paper and envelope converting industries with
certifications from the Forest Stewardship Council (FSC),
Rainforest Alliance, Sustainable Forestry Initiative (SFI),
Programme for the Endorsement of Forest Certification (PEFC),
Chlorine Free Products Association, and Green Seal. For more
information on National Envelope please visit
http://www.nationalenvelope.com/
NEC HOLDINGS: Case Summary & 30 Largest Unsecured Creditors
-----------------------------------------------------------
Debtor: NEC Holdings Corp.
333 Earle Ovington Boulevard, Suite 1035
Uniondale, NY 11553
Bankruptcy Case No.: 10-11890
Chapter 11 Petition Date: June 10, 2010
Court: U.S. Bankruptcy Court
District of Delaware (Delaware)
Judge: Peter J. Walsh
Debtor's Counsel: Kara Hammond Coyle, Esq.
Young Conaway Stargatt & Taylor LLP
1000 West Street, 17th Floor
Brandywine Building
Wilmington, DE 19801
Tel: (302) 571-6600
E-mail: bankfilings@ycst.com
Debtor's
Co-General
Bankruptcy
Counsel: David S. Heller, Esq.
Josef S. Athanas, Esq.
Stephen R. Tetro II, Esq.
Latham & Watkins LLP
233 South Wacker Drive, Suite 5800
Chicago, IL 60606
Telephone: (312) 876-7700
Fax: (312) 993-9767
Debtor's
Special Counsel: Fulbright & Jaworski L.L.P.
Debtor's Claims
and Notice Agent: The Garden City Group
http://nationalenvelopeinfo.com/
Estimated Assets: $100,000,001 to $500,000,000
Estimated Debts: $100,000,001 to $500,000,000
The petition was signed by James Shelby Marlow, authorized
individual.
Debtor-affiliates filing separate Chapter 11 petition:
Case No. Entity
-------- ------
10-11891 - National Envelope Corporation
Assets: $100,000,000 to $500,000,000
Debts: $100,000,000 to $500,000,000
10-11892 - National Envelope - WH LLC
10-11893 - National Envelope - AECO LLC
10-11894 - National Envelope - City of Industry LLC
10-11895 - National Envelope - Corsicana LLC
10-11896 - National Envelope - Aurora LLC
10-11897 - National Envelope - Appleton LLC
10-11898 - National Envelope - Scottdale LLC
10-11899 - National Envelope - Chino LLC
10-11900 - National Envelope - Ennis LLC
10-11901 - National Envelope - Grand Prairie LLC
10-11902 - National Envelope - Lenexa LLC
10-11903 - National Envelope - Elk Grove Village LLC
10-11904 - National Envelope Corporation - East
10-11905 - National Envelope - Specialties Group LLC
10-11906 - National Envelope - Houston LLC
10-11907 - National Envelope - Shelbyville Equity LLC
10-11908 - National Envelope - Exton Equity LLC
10-11909 - National Envelope - Nashville Equity LLC
10-11910 - National Envelope - Houston Equity LLC
10-11911 - National Envelope - Leasing LLC
10-11912 - New York Envelope Corp.
10-11913 - National Envelope Corporation - North
10-11914 - National Envelope Corporation - South
10-11915 - National Envelope Corporation - Central
10-11916 - Old Colony Envelope Corp.
10-11917 - Aristocrat Envelope Corporation
National Envelope Corp.'s List of 30 Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
------ --------------- ------------
International Paper Trade $43,081,102
6400 Poplar Avenue
Memphis, TN 38197
Multi-Plastics, Inc. Trade $3,645,345
7770 North Central Drive
Lewis Center, OH 43035
Henkel National Adhesives Trade $2,792,902
1413 Wincanton Road
Deerfield, IL 60015
Gadge USA, Inc. Trade $2,763,531
1979 Marcus Avenue
Lake Success, NY 11042
Neenah Paper Inc. Trade $2,740,423
3460 Preston Ridge, Suite 600
Alpharetta, GA 30005
Mid-Indiana Transportation Trade $2,368,880
Experts (M.I.T.E.)
1840 W Jeffras Avenue
Marion, IN 46952-3311
DuPont Non Wovens Trade $1,949,533
412 N Bloodworth Street
Raleigh, NC 27604
Plastic Suppliers Trade $1,295,992
2887 Johntown Road
Columbus, OH 43219
American Eagle Paper Mills Trade $1,261,329
1600 Pennsylvania Avenue
Tyrone, PA 16686
Bulkley Dunton Publishing Group Trade $820,727
One Penn Plaza
250 W 34th Street, Suite 2814
New York, NY 10119
JBM Envelope Trade $801,116
2850 Henkle Drive
Lebanon, OH 45036-8894
Mohawk Paper Mills, Inc. Trade $589,040
465 Saratoga Street
Cohoes, NY 12047
Pitman Trade $501,307
4005 Royal Drive, Suite 100
Kennesaw, GA 30144
Lindenmeyr Munroe Trade $492,048
115 Moonachie Avenue
Moonachie, NJ 07074
Boise Paper Trade $454,573
1111 West Jefferson St, Suite 200
Boise, ID 83728
Domtar Paper Company, LLC Trade $394,309
100 Kingsley Park Road
Fort Mill, SC 29715-6476
Precise Rotary Die, Inc Trade $356,442
9250 Ivanhoe Street
Schiller Park, IL 60176
PCMC Trade $354,799
899 Old Route 220 N
Duncansville, PA 16635
INX International Ink Co Trade $353,962
150 N. Martindale Road, Suite 700
Schaumburg, IL 60173
Fluid Ink Technology/Toyo Ink Trade $345,720
Technologies
5360 Commerce Avenue
Moorpark, CA 93021
Spirit Finance Acquisitions, LLC Note $343,000
14361 N. Scottsdale Road, Suite 200
Scottsdale, AZ 85254-2711
Rand-Whitney Container LLC Trade $340,335
1 Agrand Street
Worcester, MA 01607-1699
Wausau Paper Trade $309,867
200 Paper Place
Mosinee, WI 54455
Mafcote, Inc. Trade $302,011
108 Main Street
Norwalk, CT 06851
Citi Paper USA, Inc. Trade $278,656
1545 Corporate Center Drive
Sun Prairie, WI 53590
W & D Machinery Company Trade $261,855
9101 Quivira Road
Overland Park, KS 66215-3992
PSI Packaging Services Trade $247,307
All-Size Corrugated Trade $237,816
Blue Ridge Paper Products Inc. Trade $218,428
Glatfelter Company Trade $210,071
NEFF CORP: Disclosure Statement Confirmation Hearing on July 12
---------------------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of New York
has set a hearing for July 12, 2010, at 2:00 p.m., prevailing
Eastern Time, to consider the confirmation of Neff Corp., et al.'s
disclosure statement for the Debtors' joint plan.
At the disclosure statement hearing, the Debtors will request the
Court to establish July 12, 2010, as the Voting Record Date for
determining the Holders of Claims and Interests eligible to vote
on the Plan. Objections, if any, to the approval of the
Disclosure Statement, or any of the other relief sought by the
Debtors in connection with the approval of the Disclosure
Statement, must be filed with the Court and served by first-class
mail upon each of the interested parties by July 2, 2010, at
4:00 p.m., prevailing Eastern Time.
On May 16, 2010, the Debtors filed with the Court a joint plan of
reorganization and disclosure statement.
The primary purpose of the Plan is to effectuate a balance sheet
restructuring and deleveraging of the Debtors' current capital
structure. The restructuring will be effectuated through various
Restructuring Transactions, including, among other things,
consummating a sale of substantially all of the Debtors' assets
and postpetition liabilities to the Purchaser through the Sale
Transaction. Additionally, the Debtors will also effectuate the
Rights Offering under the Plan for up to $119 million in New
Common Units of the Purchaser to Eligible Holders of Class 6 First
Lien Term Loan Claims and Class 7 Second Lien Term Loan Claims, as
applicable, as of the Voting Record Date. The Rights Offering
will be fully backstopped by the Plan Sponsors, in their capacity
as the Backstop Parties. The Debtors will also enter into a
$175 million DIP Facility, allowing them to fund ongoing business
operations and the administrative costs of these chapter 11 cases.
Ultimately, the Plan allows the Debtors to continue operating
their businesses in the ordinary course, preserves their going-
concern value, and brings their capital structure into alignment
with their current and future operating prospects by eliminating
more than $400 million in prepetition debt. Holders of Allowed
Revolving Credit Facility Claims will be paid in full in Cash on
account of their Claims and the Debtors' First Lien Term Loan
Lenders will receive a full recovery under the Plan in the form of
cash or New Common Units in the Purchaser (at their election).
Second Lien Term Loan Lenders and General Unsecured Creditors will
also be afforded meaningful recoveries and the jobs of the
Debtors' approximately 900 employees will be preserved.
Copies of the Plan and disclosure statement are available for free
at:
http://bankrupt.com/misc/NEFF_CORP_plan.pdf
http://bankrupt.com/misc/NEFF_CORP_ds.pdf
Treatment of Claims
Under the Plan, the administrative claims, accrued professional
compensation claims, DIP claims, and priority tax claims will be
fully paid.
With respect to classified claims:
Class Classification Treatment
----- -------------- ---------
1 Other Priority Claims Unimpaired
2 Secured Tax Claims Unimpaired
3 Other Secured Claims Unimpaired
4 Revolving Credit Facility Claims Unimpaired
5 Secured Swap Claims Impaired
6 First Lien Term Loan Claims Impaired
7 Second Lien Term Loan Claims Impaired
8 Senior Notes Claims Impaired
9 General Unsecured Claims Impaired
10 Intercompany Claims Unimpaired
11 Section 510(b) Claims Impaired
12 Intercompany Interests Unimpaired
13 Equity Interests Impaired
About Neff Corp.
Privately held Neff Corp., doing business as Neff Rental, provides
construction companies, golf course developers, industrial plants,
the oil industry, and governments with reliable and quality
equipment that is delivered on time where it is needed. With more
than 1,000 employees operating from branches coast to coast, Neff
Rental is ranked by Rental Equipment Register (RER) magazine as
one of the nation's 10 largest equipment rental companies.
Neff Corp. and its units, including Neff Rental Inc. filed for
Chapter 11 on May 17, 2010 (Bankr. S.D.N.Y. Case No. 10-12610).
Based in Miami, Neff has assets of $299 million and debt of
$609 million, according to the disclosure statement explaining the
plan. Funded debt totals $580 million. Revenue in 2009 was
$192 million.
NEIMAN MARCUS: Moody's Upgrades Corporate Family Rating to 'B3'
---------------------------------------------------------------
Moody's Investors Service upgraded Neiman Marcus Group, Inc.'s
ratings, including the Corporate Family Rating to B3 from Caa1 and
the Speculative Grade Liquidity Rating to SGL-1 from SGL-2. The
rating outlook is stable.
The upgrade acknowledges Neiman Marcus's improved operating
performance driven by top line sales improvements (offset somewhat
by higher selling general and administrative expenses) that has
led to a solid recovery in credit metrics. The upgrade also
reflects Moody's opinion that operating performance will continue
to improve resulting in credit metrics strengthening to levels
appropriate for the B3 rating.
The B3 Corporate Family Rating reflects that Neiman Marcus's
operating performance will continue to improve, yet credit metrics
will remain weak due to its very high debt levels. In particular,
Moody's expects interest coverage to remain above 1.0 time and
leverage to fall to slightly above 7.0 times. The rating also
reflects Moody's belief that the luxury goods market will be
constrained by tighter consumer credit -- thus the market size
will not return to its pre recession levels. Positive ratings
consideration is given to Neiman Marcus's good liquidity, solid
competitive position in the luxury market, and solid execution
ability.
The upgrade to SGL-1 represents Moody's view that Neiman Marcus
will maintain very good liquidity. Moody's expect the company to
maintain healthy cash balances and a sizable undrawn revolving
credit facility. At May 1, 2010, Neiman Marcus had $513 million
in cash and a $600 million undrawn revolving credit facility which
expires in January 2013. The facility is secured by accounts
receivable and inventory. It is currently only used for a small
amount of letters of credit. Total availability under the
revolving credit facility at May 1, 2010, was about $486 million.
The credit agreement only contains one financial covenant which is
only activated when availability falls below $60 million. Moody's
do not expect Neiman Marcus to activate this financial covenant.
Neiman Marcus has limited alternative sources of liquidity as all
domestic assets have been pledged to secure its debt.
The stable outlook reflects Moody's expectation that Neiman
Marcus's operating performance will continue to improve leading to
a further recovery in credit metrics, but that overall metrics
will nevertheless remain weak. In addition, the outlook reflects
that Neiman Marcus will maintain good liquidity.
These ratings are updgraded and LGD point estimates changed:
* Corporate Family Rating to B3 from Caa1;
* Probability of Default Rating to B3 from Caa1;
* Senior secured bank facility to B2 (LGD 3, 35%) from B3 (LGD 3,
35%);
* Senior secured debentures to B2 (LGD 3, 35%) from B3 (LGD 3,
35%);
* Senior unsecured debt to Caa1 (LGD 5, 75%) from Caa2 (LGD 5,
76%);
* Senior subordinated debt to Caa2 (LGD 6, 92%) from Caa3 (LGD 6,
92%); and
* Speculative grade liquidity rating to SGL-1 from SGL-2.
The last rating action on Neiman Marcus was on July 22, 2009, when
its Corporate Family Rating and Probability of default rating were
affirmed at Caa1 and the outlook was changed to stable from
negative.
Neiman Marcus Group, Inc., headquartered in Dallas, TX, operates
40 Neiman Marcus stores, 2 Bergdorf Goodman stores, 21 clearance
centers, and a direct business. Total revenues are about
$3.5 billion.
NORTH AMERICAN REFRACTORIES: Selling Zircoa, Inc., Equity Stake
---------------------------------------------------------------
On June 18, 2010 at 9:00 a.m., in Pittsburgh, North American
Refractories Company, Inc., will ask the Honorable Judith K.
Fitzgerald for permission to sell its equity stake in Zircoa,
Inc., free and clear of liens, claims, and encumbrances, to
Zirconium Products LLC in exchange for (i) $2,301,801 in cash at
Closing; (ii) satisfaction of a $1,698,199 receivable in cash at
Closing; (iii) a release from potential controlled group claims
related to an estimated $8.6 million in pension liabilities; and
(iv) indemnification against potential claims related to an
estimated $5 million in other post-employment benefit obligations.
The Sale is not subject to higher and better offers.
About NARCO
Based in Pittsburgh, Pennsylvania, North American Refractories
Company manufactured and sold refractory products.
The Company and its affiliates sought Chapter 11 protection on
Jan. 4, 2002 (Bankr. W.D. Pa. Case No. 02-20198) after
suffering a slump in the domestic economy and encountering an
overwhelming number of claims from individuals asserting injuries
or illnesses caused by exposure to asbestos containing
products it manufactured. The Company reported $27.5 billion in
assets and $18.6 billion in liabilities at the time of the
filing.
The Hon. Judith K. Fitzgerald confirmed a Third Amended Plan of
Reorganization filed by North American Refractories Company and
its debtor-affiliates, I-Tec Holding Corp., Intertec Company,
and Tri-Star Refractories, Inc., on Sept. 24, 2007. That plan
estimated that unsecured non-asbestos creditors would recover
about 90 cents-on-the-dollar. Asbestos claims were channeled
to a 524(g) trust funded by Honeywell International Inc. and
79% of the stock of the Reorganized Debtor.
James J. Restivo, Jr., Esq., Robert P. Simmons, Esq., and David
Ziegler, Esq., at Reed Smith LLP represents the Debtor. Kroll
Zolfo Cooper LLC is the Debtors' bankruptcy consultants and
special financial advisors.
The Official Committee of Unsecured Creditors is represented by
McGuire Woods, LLP. KPMG, LLP, is the Creditors Committee's
financial advisor. The Asbestos Claimants Committee is
represented by attorneys at Caplin & Drysdale, Chartered and
Campbell & Levine, LLC. L. Tersigni Consulting, PC was the
Asbestos Committee's financial advisor.
Lawrence Fitzpatrick was appointed as the Future Asbestos
Claimants Representative. Mr. Fitzpatrick is represented by
attorneys at Young Conaway Stargatt & Taylor LLP and Meyer,
Unkovic & Scott LLP.
NORTHBROOK DEVELOPMENT: Case Summary & Creditors List
-----------------------------------------------------
Debtor: Northbrook Development Parcel Owner, LP
11200 Rockville Pike, Suite 502
Rockville, MD 20852
Bankruptcy Case No.: 10-22983
Chapter 11 Petition Date: June 9, 2010
Court: U.S. Bankruptcy Court
District of Maryland (Greenbelt)
Debtor's Counsel: Bradford F. Englander, Esq.
Whiteford Taylor & Preston, L.L.P.
3190 Fairview Park, Suite 300
Falls Church, VA 22042
Tel: (703) 280-9081
Fax: (703) 280-3370
E-mail: benglander@wtplaw.com
Estimated Assets: $10,000,001 to $50,000,000
Estimated Debts: $10,000,001 to $50,000,000
The petition was signed by Sidney M. Bresler, CEO of B & R PA
Holdings, Inc. and Northbrook Development Parcel, GP, LLC.
Debtor-affiliates filing separate Chapter 11 petition:
Entity Case No. Petition Date
------ -------- -------------
Jersey Island Owner, LL 10-22970 06/09/10
Debtor's List of 13 Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
------ --------------- ------------
The Brickman Group, Ltd. -- $13,370
3630 Solutions Center
Chicago, IL 60677-3006
Acorn Development Corp. -- $6,524
400 Oaks Corporate Center
P.O. Box 1150
Oaks, PA 19456
Golden Eagle Cleaning Svc Inc. -- $4,301
1001 Lower Landing Road
Blackwood, NJ 08012
Kastle Security Systems -- $1,826
A & S Sprinkler Co., Inc. -- $962
BCWSA -- $359
CT Corporation -- $350
John Miller, Inc. -- $260
Guaranteed Foliage, Inc. -- $247
Electrical Measurements -- $184
Verizon -- $123
Tri State Office Solutions -- $108
Angus Systems Group, Inc. -- $79
NOVADEL PHARMA: Selects Craig Johnson as Chief Financial Officer
----------------------------------------------------------------
NovaDel Pharma Inc. appointed Craig Johnson as Senior Vice
President, Chief Financial Officer and Secretary effective June
16, 2010. Steven B. Ratoff, Chairman, President and Chief
Executive Officer, has served as Interim Chief Financial Officer
and Secretary since April 2009.
"We are extremely pleased to welcome Craig to NovaDel as our new
Chief Financial Officer," commented Steven B. Ratoff, Chairman,
President and Chief Executive Officer. "Craig's talent and
experience provides us with an enhanced ability to achieve our
goals and we welcome Craig as a member of our team."
Prior to joining NovaDel, Mr. Johnson served as Vice President and
Chief Financial Officer of TorreyPines Therapeutics from 2004
until its sale to Raptor Pharmaceutical Corp. in September 2009.
Following the sale, he served as Vice President of TPTX, Inc., a
subsidiary of Raptor Pharmaceutical Corp., until April 2010. From
1994 to 2004, Mr. Johnson was employed by MitoKor, Inc. where he
last held the position of Chief Financial Officer and Senior Vice
President of Operations. Prior to MitoKor, he served as a senior
financial executive for several early-stage technology companies,
and he also practiced as a Certified Public Accountant with Price
Waterhouse.
Currently, Mr. Johnson is as a member of the board of directors of
Ardea Biosciences, a publicly-traded biotechnology company, where
he serves as the chairman of the audit committee. Mr. Johnson
received his BBA in accounting from the University of Michigan and
is a certified public accountant.
Bridgewater, N.J.-based NovaDel Pharma Inc. (OTC BB: NVDL)
-- http://www.novadel.com/-- is a specialty pharmaceutical
company developing oral spray formulations for a broad range of
marketed pharmaceuticals.
* * *
As reported in the Troubled Company Reporter on April 6, 2010,
J.H. Cohn LLP, in Roseland, N.J., expressed substantial doubt
about the Company's ability to continue as a going concern after
auditing the Company's financial statements for the year ended
December 31, 2009. The independent auditors noted that of the
Company's recurring losses from operations and negative cash flows
from operating activities.
The Company's balance sheet as of March 31, 2010, showed
$5,032,000 in assets and $9,831,000 of liabilities, for a
stockholders' deficit of $4,799,000.
NOVADEL PHARMA: Reports $4 Million Working Capital at March 31
--------------------------------------------------------------
Novadel Pharma Inc. held its 2010 annual meeting of stockholders
on June 10, 2010, at the offices of Morgan Lewis & Bockius LLP
located at 502 Carnegie Center in Princeton, New Jersey.
The company discussed its financial metrics at the meeting:
* $4.0 million in working capital at 3-31-10
* Clean balance sheet-no debt
* Approximately 98 million shares outstanding
* Major shareholder holds about 40%
* Management holds about 5%
* Market cap approximately $20 million
A full-text copy of the company's annual presentation is available
for free at http://ResearchArchives.com/t/s?64b5
Bridgewater, N.J.-based NovaDel Pharma Inc. (OTC BB: NVDL)
-- http://www.novadel.com/-- is a specialty pharmaceutical
company developing oral spray formulations for a broad range of
marketed pharmaceuticals.
* * *
As reported in the Troubled Company Reporter on April 6, 2010,
J.H. Cohn LLP, in Roseland, N.J., expressed substantial doubt
about the Company's ability to continue as a going concern after
auditing the Company's financial statements for the year ended
December 31, 2009. The independent auditors noted that of the
Company's recurring losses from operations and negative cash flows
from operating activities.
The Company's balance sheet as of March 31, 2010, showed
$5,032,000 in assets and $9,831,000 of liabilities, for a
stockholders' deficit of $4,799,000.
O&G LEASING: Final Hearing on Cash Collateral Use Set for June 25
-----------------------------------------------------------------
O&G Leasing, LLC, and its affiliate Performance Drilling Company,
LLC, will appear before the Hon. Edward Ellington on June 25,
2010, at 9:30 a.m., at the United States Bankruptcy Court in
Jackson, Mississippi, to seek final approval of their request to
use cash collateral of First Security Bank as trustee.
Cash Collateral consists largely of future receipts from the
Debtors' continued operations.
The Court held preliminary hearings on May 25 and 27, 2010, and on
May 28 granted the Debtors interim authority to use the lender's
cash collateral.
Objections to the Motion or the terms of the Interim Order are due
June 18, 2010, at 5:00 p.m. Central Time.
On May 27, 2010, the Debtors also won interim authority to pay
postpetition installments of insurance policies, and pay
prepetition premiums, if any, necessary to maintain insurance
coverage.
The Debtors are indebted to the holders of 10.50% Debentures,
Senior Series 2009A and 16.00% Subordinate Debentures, Series
2009B issued by Debtor O&G Leasing, LLC, in the aggregate
principal amount of $33,565,000. First Security Bank serves as
the trustee for the Debentures. The Trustee asserts that the
Debtors' prepetition obligations under the Debentures were, as of
the Petition Date, secured by liens and security interests on
essentially all of the Debtors' assets.
The Debtors contest the validity, perfection or enforceability of
the liens asserted by the Trustee in the Prepetition Collateral,
including liens on Cash Collateral. The Debtors have proposed
granting to the Trustee, pending final resolution of the lien
dispute, conditional adequate protection designed to protect the
interests of the Trustee in the Collateral in the event that the
Debtors' challenges are unsuccessful. The Trustee intends to seek
additional adequate protection.
The Debtors have indicated the use of Cash Collateral is the most
readily (if not only) available and most cost-advantageous post-
petition financing available to the estates. Absent the relief
sought by the Interim Order, the Debtors' estates will be
immediately and irreparably harmed, and their ability to continue
their operations and perform the contracts that generate all of
the Company's revenue would be placed at risk.
Pursuant the Interim Order, the Court granted conditional claims
against the Debtors' estates in favor of the Trustee as adequate
protection without prejudice to the Trustee's rights to seek
additional adequate protection, which claims will be in the amount
of any postpetition diminution in the value of the Trustee's
beneficial interests, for and on behalf of the holders of the
Debentures, in (a) cash which may constitute Cash Collateral or
(b) any Prepetition Collateral from and after the Petition Date,
to the extent such interests are determined to be entitled to
adequate protection against such diminution under the Bankruptcy
Code. The Interim Order, nonetheless, provides that neither the
Adequate Protection Liens nor the Post-Petition Collateral will
include any claims, causes of action and proceeds arising under
Sections 510, 544, 545, 546, 547, 548, 549, 550 and 551 of the
Bankruptcy Code.
First Security Bank is represented in the Debtors' cases by Jim F.
Spencer, Esq., at Watkins & Eager PLLC.
Jackson, Mississippi-based O&G Leasing, LLC, filed for Chapter 11
bankruptcy protection on May 21, 2010 (Bankr. S.D. Miss. Case No.
10-01851). Douglas C. Noble, Esq., at McCraney Montagnet & Quin,
PLLC, assists the Company in its restructuring effort. The
Company listed $10,000,001 to $50,000,000 in assets and
$50,000,001 to $100,000,000 in liabilities.
OLD TIME: Court Approves Plan; Bankruptcy Exit by June's End Seen
-----------------------------------------------------------------
Home Accents Today reports that a federal court approved the
Chapter 11 plan of reorganization of Old Time Pottery Inc. The
Company has secured a new $20 million revolving line of credit
from First Merit Bank of Akron. A person familiar with the matter
said the Company is expected to emerge by the end of this month.
According to Home Accents, the Company will exit bankruptcy with
30 store locations, down from 37 stores before filing in August
2009. The Murfreesboro store was not a part of the reorganization
and will remain open. Initial payments to all prepetition
creditors have been made, according to the Daily News Journal.
The Company filed for Chapter 11 on Aug. 21, 2009 (Bankr. M.D.
Tenn. Case No. 09-09548). G. Rhea Bucy, Esq., Linda W. Knight,
Esq., and Thomas H. Forrester, Esq. at Gullett, Sanford, Robinson,
Martin represent the Debtor in its restructuring efforts. In its
petition, the Debtor listed $50,000,001 to $100,000,000 in assets
and $10,000,001 to $50,000,000 in debts.
OPPENHEIMER HOLDINGS: Moody's Changes Outlook to Stable
-------------------------------------------------------
Moody's Investors Service changed to stable from negative the
outlook on Oppenheimer Holdings, Inc. and E.A. Viner International
Co., Oppenheimer's U.S. subsidiary.
The rating action reflects the improvement in Oppenheimer's
financial performance during the last 16 months and the
settlements reached with Massachusetts and New York regulators
pertaining to auction-rate securities. Both factors improve
Oppenheimer's financial flexibility while the ARS settlements, in
particular, reduce the extreme risks the company was facing from
potential regulatory sanctions.
In 2009, Oppenheimer's financial performance improved greatly as
market-driven revenues rebounded and expenses related to the 2008
acquisition of CIBC's U.S. Capital Market business declined. As a
result, Oppenheimer's 2009 core EBITDA improved to $61 million
from negative $7 million in 2008. At March 31, 2010, Debt/core
EBITDA (annualized) stood at 1.5x with interest coverage at 12x --
levels that are strong relative to Oppenheimer's B2 rating.
Despite these good metrics, as its historical performance shows,
Oppenheimer's credit profile is highly susceptible to equity
market fluctuations. Both the Private Client and the Capital
Markets businesses are correlated with market performance, while
the firm's expense profile -- with a 64%-68% compensation ratio
and high fixed expenses -- limits its financial flexibility during
market downturns. As an example, in 2008 the severe market
correction combined with CIBC-related acquisition costs caused
Oppenheimer to seek debt-service covenant waivers from its
lenders.
The rating agency noted, however, that Oppenheimer's disciplined
pay-down of senior debt (currently $32 million with $10 million
scheduled to be paid down over the next 12 months) offsets this
vulnerability to some degree as does the potential for higher
revenue from interest-sensitive client balances when rates
increase.
Oppenheimer's ARS settlements with the Massachusetts Securities
Division and New York Attorney General reached earlier this year
reduce the risks of losses or sanctions against the company. At
April 30, 2010, Oppenheimer's clients (excluding qualified
institutional buyers and inbound transfers subsequent to the
failure of the ARS market) owned $643 million of ARS. Pursuant to
the settlements, Oppenheimer's expects to redeem at par
$39 million in ARS over the next 15 months (at March 31, 2010,
Oppenheimer held $5 million of ARS on its balance sheet) -- an
amount that Moody's does not view as having material adverse
implications for Oppenheimer's liquidity. After this, the company
expects to continue redeeming ARS from clients subject to
available capital and cash flow.
Compared to more adverse potential outcomes, the settlement is
positive for creditors. Nevertheless, it does not remove all
risks, including those from multiple pending ARS-related lawsuits
-- a factor, that combined with Oppenheimer's historical track
record of regulatory issues, weighs heavily on its credit profile.
Following from this, prospects for future upgrade will depend on
the resolution of existing issues and the absence of any new
serious regulatory, reputational, compliance or litigation-related
problems.
The last rating action on Oppenheimer was on January 29, 2009,
when Moody's downgraded its corporate family rating to B2
(negative outlook) from B1.
ORLUN JONES: Case Summary & 20 Largest Unsecured Creditors
----------------------------------------------------------
Joint Debtors: Orlun K. Jones
Estela Jones
15805 Lindina Drive
Riverside, CA 92504
Bankruptcy Case No.: 10-27784
Chapter 11 Petition Date: June 9, 2010
Court: U.S. Bankruptcy Court
Central District of California (Riverside)
Judge: Catherine E. Bauer
Debtor's Counsel: Majid Foroozandeh, Esq.
9891 Irvine Center Drive, Suite 130
Irvine, CA 92618
Tel: (949) 336-8505
Fax: (208) 485-5959
E-mail: majidf@foroozandeh-law.com
Estimated Assets: $500,001 to $1,000,000
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/cacb10-27784.pdf
The petition was signed by the Joint Debtors.
PANAMSAT CORP: 3 Bank Debts Trade at 6% Off in Secondary Market
---------------------------------------------------------------
Participations in three syndicated loans under which PanAmSat
Corporation is a borrower traded in the secondary market at 94.00
cents-on-the-dollar (per loan) during the week ended Friday, June
11, 2010, according to data compiled by Loan Pricing Corp. and
reported in The Wall Street Journal. This represents a drop of
1.22 percentage points (per loan) from the previous week, The
Journal relates. The Company pays 250 basis points above LIBOR to
borrow under each facility. The bank loans mature simultaneously
on Jan. 3, 2014, and are not rated by Moody's and Standard &
Poor's. The debts are among the biggest gainers and losers of 185
widely quoted syndicated loans with five or more bids in secondary
trading for the week ended Friday.
Intelsat Corporation, -- http://www.intelsat.com/-- formerly
known as PanAmSat Corporation, is a global provider of video,
corporate, Internet, voice and government communications services
with a fleet of 25 satellites in-orbit. The Company provides
transponder capacity to customers on Company-owned and operated
satellites, and deliver third-party entertainment and information
to cable television systems, television broadcasters, direct-to-
home, television operators, Internet service providers,
telecommunications companies, governments and other corporations.
It also provides satellite services and related technical support
for live transmissions for news and special events coverage. In
addition, the Company provides satellite services to
telecommunications carriers, corporations and Internet service
providers for the provision of satellite-based communications
networks, including private corporate networks.
Intelsat Ltd.'s balance sheet showed total assets of $12.05
billion, total debts of $12.77 billion and stockholders' deficit
of $722.3 million as of March 31, 2008.
PATRICK MALONEY: Files Schedules of Assets and Liabilities
----------------------------------------------------------
Patrick and Cynthia Maloney filed with the U.S. Bankruptcy Court
for the Northern District of Illinois a summary of their schedules
of assets and liabilities, disclosing:
Name of Schedule Assets Liabilities
---------------- ----------- -----------
A. Real Property $5,975,000
B. Personal Property $132,500
C. Property Claimed as
Exempt
D. Creditors Holding
Secured Claims $3,130,000
E. Creditors Holding
Unsecured Priority
Claims $0
F. Creditors Holding
Unsecured Non-priority
Claims $3,058,094
----------- -----------
TOTAL $6,107,500 $6,188,094
Lake Forest, Illinois-based Patrick Maloney filed for Chapter 11
on May 3, 2010 (Bankr. N.D. Ill. Case No. 10-20171.) Richard N.
Golding, Esq. at The Golding Law Offices, P.C. assists the Debtor
in its restructuring effort. In its petition, the Debtor listed
assets ranging from $10,000,001 to $50,000,000 and debts ranging
from $1,000,001 to $10,000,000.
PGI INCORPORATED: Posts $1.2 Million Net Loss in Q1 2010
--------------------------------------------------------
PGI Incorporated filed its quarterly report on Form 10-Q,
reporting a net loss of $1,184,000 on $12,000 of interest income
for the three months ended March 31, 2010, compared with a net
loss of $1,059,000 on $16,000 of interest income for the same
period ended March 31, 2009.
The Company's balance sheet as of March 31, 2010, showed
$1,618,000 in assets and $55,846,000 of liabilities, for a
stockholders' deficit of $54,236,000
As reported in the Troubled Company Reporter on April 1, 2010,
BKD, LLP, in St. Louis, Mo., expressed substantial doubt about the
Company's ability to continue as a going concern after auditing
the Company's financial statements for the year ended December 31,
2009. The independent auditors noted that the Company has a
significant accumulated deficit, and is in default on its primary
debt, certain sinking fund and interest payments on its
convertible subordinated debentures and its convertible
debentures.
A full-text copy of the quarterly report is available for free at:
http://researcharchives.com/t/s?64ae
St. Louis, Mo.-based PGI Incorporated was until the mid 1990's in
the business of building and selling homes, developing and selling
home sites and selling undeveloped or partially developed tracts
of land. Over the last 15 years, the Company's business focus
and emphasis changed substantially as it concentrated its sales
and marketing efforts almost exclusively on the disposition of its
remaining real estate. This change was prompted by its continuing
financial difficulties due to the principal and interest owed on
its debt.
The Company's most valuable remaining asset is a parcel of 366
acres located in Hernando County, Florida. As of March 31, 2010,
the Company also owned seven single family lots, located in Citrus
County, Florida. In addition, the Company owns some minor parcels
of real estate in Charlotte County and Citrus County, Florida, but
these have limited value because of associated developmental
constraints such as wetlands, easements, or other obstacles to
development and sale.
PINE ISLAND: Case Summary & Largest Unsecured Creditor
------------------------------------------------------
Debtor: Pine Island Ferrari, LLC
4821 Coronado Parkway
Cape Coral, FL 33904
Bankruptcy Case No.: 10-14005
Chapter 11 Petition Date: June 10, 2010
Court: U.S. Bankruptcy Court
Middle District of Florida (Ft. Myers)
Debtor's Counsel: John G. Mac'Kie III, Esq.
Foreclosure Defense Services, LLC
5801 Glen Cove Drive #505
Naples, FL 34108
Tel: (239) 592-1143
E-mail: johngmackie3@aol.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
The petition was signed by Steven Cristaldi, managing member.
The list of unsecured creditor filed together with its petition
contains only one entry:
Entity Nature of Claim Claim Amount
------ --------------- ------------
Commerce Bank of SW Florida Commercial $2,961,632
c/o Gordon R. Duncan, Esq. Real Estate
Duncan & Associates, P.A.
P.O. Box 249
Fort Myers, FL 33902
PMA CAPITAL: Fitch Puts 'BB+' Senior Debt Rating on Positive Watch
------------------------------------------------------------------
Fitch Ratings has placed PMA Capital Corp.'s Issuer Default Rating
and senior debt rating at 'BBB-' and 'BB+', respectively on Rating
Watch Positive. Fitch also has placed the 'BBB+' Insurer
Financial Strength ratings of the three active primary insurance
subsidiaries collectively referred to as PMA Insurance Group, on
Rating Watch Positive. A complete list of PMAIG member companies
and rating actions follows at the end of this release.
Fitch's rating action follows the company's announcement that it
has entered into a merger agreement with Old Republic
International. ORI announced its intent to acquire PMACC in an
all stock transaction valued at approximately $230 million and
expected to close during the third quarter of 2010.
Fitch will resolve the Rating Watch status upon closure of the
transaction. ORI's property/casualty operating subsidiaries
current IFS rating is 'A+' with a Negative Rating Outlook.
Fitch has placed these ratings on Rating Watch Positive:
Manufacturers Alliance Insurance Co.
Pennsylvania Manufacturers' Association Insurance Co.
Pennsylvania Manufacturers Indemnity Co.
-- IFS 'BBB+'.
PMA Capital Corp.
-- IDR 'BBB-';
-- $54.9 million senior notes, 8.5% due June 15, 2018 'BB+'
-- $.05 million convertible debt, 4.25% due Sept. 30, 2022
'BB+'.
PMA CAPITAL: Puts Ba3 Sr. Debt Rating on Review for Poss. Upgrade
-----------------------------------------------------------------
Moody's Investors Service has affirmed the ratings of Old Republic
International (Baa1 senior debt) and its key property & casualty
subsidiaries (A1 insurance financial strength), and has placed the
ratings of PMA Capital Corporation (Ba3 senior debt) on review for
possible upgrade. These actions follow the announcement that Old
Republic intends to acquire PMA through an all stock transaction
expected to close during the third quarter of 2010. The outlook
for Old Republic International and its property and casualty
subsidiaries is stable. The ratings of Old Republic's title
insurance and mortgage insurance subsidiaries were not affected by
this action.
Commenting on the acquisition, Moody's analyst Paul Bauer said,
"We believe that the addition of PMA, with its weaker credit
profile, is an incremental credit negative for Old Republic.
However, given the relatively small size of PMA's book of business
in relation to Old Republic's total revenue and capital, Old
Republic should be able to absorb PMA without straining its
current credit profile."
Moody's said that benefits of the transaction for Old Republic
include better geographic diversification, with an increased
footprint in the eastern US in workers' compensation insurance.
However, this is offset by the higher risk product characteristics
of PMA's mono-line workers' compensation focus, very competitive
market conditions, and risks associated with PMA's reserve
adequacy and reinsurance recoverables. These risks will pose
challenges for Old Republic in terms of maintaining adequate
capitalization and appropriate product pricing for the PMA book of
business; however, to a large degree, the risks appear to be
incorporated into the below-book value purchase price of PMA. The
transaction would also modestly increase Old Republic's financial
leverage (pro forma adjusted debt-to-capital is expected to move
up to about 17% from 15%), though not to a degree that would
impact overall financial flexibility.
Commenting on the review for upgrade of PMA's ratings, Moody's
said the review will focus on the level of integration within the
overall Old Republic group, as well as the degree of implicit and
explicit support, if any, received from Old Republic. Mr. Bauer
added that, "As part of a larger organization with stronger credit
characteristics, PMA's financial flexibility will benefit and its
franchise strength should improve in its chosen markets."
These ratings were affirmed with a stable outlook:
* Old Republic International Corporation -- senior unsecured debt
rated Baa1; provisional senior unsecured shelf rated (P)Baa1;
provisional subordinated shelf rated (P)Baa2; provisional
preferred stock shelf rated (P)Baa3;
* Old Republic Capital Corporation -- commercial paper rated P-2;
* Bituminous Casualty Corp. -- insurance financial strength at A1;
* Bituminous Fire & Marine Insurance Co. -- insurance financial
strength at A1;
* Great West Casualty Company -- insurance financial strength at
A1; and,
* Old Republic Insurance Co. -- insurance financial strength at
A1.
These ratings have been placed on review for possible upgrade:
* PMA Capital Corporation -- senior unsecured debt rated Ba3;
* Manufacturers Alliance Insurance Company -- insurance financial
strength at Baa3;
* Pennsylvania Manufacturers' Association Ins Co --insurance
financial strength at Baa3; and,
* Pennsylvania Manufacturers Indemnity Company -- insurance
financial strength at Baa3.
Old Republic International Corporation, headquartered in Chicago,
Illinois, is a multi-line insurance holding company whose
subsidiaries are engaged primarily in property and casualty
insurance, mortgage guaranty, and title insurance. PMA Capital
Corporation, headquartered in Blue Bell, Pennsylvania, primarily
provides workers' compensation insurance concentrated in the
eastern US. On a pro forma basis, the combined Old Republic and
PMA entities would have had first quarter 2010 revenue of about
$1.1 billion and net income from continuing operations of
$33 million. Pro forma shareholders' equity would have been
$4.4 billion at March 31, 2010.
The last rating action involving Old Republic occurred on
February 22, 2010, when Moody's lowered the debt ratings of Old
Republic International (senior debt to Baa1 from A3) and the
insurance financial strength ratings of Old Republic's key
property & casualty subsidiaries (to A1 from Aa3), and affirmed
the insurance financial strength ratings of the lead title
insurance companies (at A1). The last rating action on PMA
occurred on March 4, 2009, when the company's ratings were
affirmed (at Baa3 for insurance financial strength) with a stable
outlook.
Moody's insurance financial strength ratings are opinions of the
ability of insurance companies to pay punctually senior
policyholder claims and obligations.
PMP II LLC: Equity Holders Transfer Rights to Bagelpipe LLC
-----------------------------------------------------------
PMP II, LLC, filed with the U.S. Bankruptcy Court for the Northern
District of Texas a Disclosure Statement explaining the proposed
Plan of Reorganization.
The Debtor will begin soliciting votes on the Plan following
approval of the adequacy of the information in the Disclosure
Statement.
According to the Disclosure Statement, the Debtor will convey the
property to HKMP, LLC in exchange for a 25%, non-dilutable
membership interest in HKMP, LLC, the venture created to develop
the property into a cemetery. As a member of HKMP, LLC, the
Reorganized Debtor will be entitled to cash distributions as the
property is developed and revenue is generated from the sale of
burial plots, niches, crypts and other services.
Under the Plan, the Class 3 Claim of the Hawaiians will be
converted to an equity interest in HKMP, LLC.
General unsecured claims will receive 100% of their allowed claims
out of the cash distributions payable to the Reorganized Debtor
until creditors holding allowed general unsecured claims are paid
in full.
Class 5 equity interest holders will assign all right, interest
and title in the Reorganized Debtor to Bagelpipe, LLC, the
Debtor's manager.
A full-text copy of the Disclosure Statement is available for free
at http://bankrupt.com/misc/PMPII_DS.pdf
The Debtor is represented by:
Gerrit M. Pronske, Esq.
E-mail: gpronske@pronskepatel.com
Rakhee V. Patel, Esq.
E-mail: rpatel@pronskepatel.com
Melanie P. Goolsby, Esq.
E-mail: mgoolsby@pronskepatel.com
Pronske & Patel, P.C.
2200 Ross Avenue, Suite 5350
Dallas, Texas 75201
Tel: (214) 658-6500
Fax: (214) 658-6509
About PMP II, LLC
Chicago, Illinois-based PMP II, LLC, dba Paradise Memorial Park,
filed for Chapter 11 bankruptcy protection on January 7, 2010
(Bankr. N.D. Texas Case No. 10-30252). The Company listed
$10,000,001 to $50,000,000 in assets and $10,000,001 to
$50,000,000 in liabilities.
PROGNOZ SILVER: Starts Bankruptcy Proceedings
---------------------------------------------
High River Gold Mines Ltd. was informed that the Arbitration Court
of the City of Moscow has approved the application of OJSC
Buryatzoloto ("Buryatzoloto") for official bankruptcy procedures
for Prognoz Silver LLC, which operates the Prognoz silver project
in the Republic of Sakha (Yakutia), Russia, which the Company has
an interest in. The commencement of the procedures will result in
the preservation of Prognoz Silver LLC's assets, an analysis of
its financial condition, the preparation of the list of creditors
and the holding of the first creditors' meeting. It is
anticipated that the bankruptcy procedures may last at least seven
months and may permit Buryatzoloto to collect or restructure the
indebtedness of Prognoz.
Buryatzoloto is 85% owned by High River. High River holds a 50%
indirect interest in Prognoz Silver LLC. In October 2009,
Buryatzoloto filed a claim to the Arbitration Court of the City of
Moscow against Prognoz Silver LLC to recover an outstanding debt
due under the contract for exploration work on the Prognoz silver
project. The amount of claim including interest and other
expenses was approximately US$18 million. The outstanding debt of
Prognoz Silver LLC originated from the inability of the
shareholders other than High River to finance their share of
expenditures at Prognoz Silver LLC. In December 2009, the court
ruled in favour of Buryatzoloto. Later, in March 2010, the ruling
was confirmed by the appellate court. The court awarded
Buryatzoloto the claimed amount; however Buryatzoloto did not
succeed in collecting it.
About High River
High River is unhedged gold company with interests in producing
mines and advanced exploration projects in Russia and Burkina
Faso. Two underground mines, Zun-Holba and Irokinda, are situated
in the Lake Baikal region of Russia. Two open pit gold mines,
Berezitovy in Russia and Taparko-Bouroum in Burkina Faso, are also
in production. Finally, High River has two advanced exploration
projects with NI 43-101 compliant resource estimates, the Bissa
gold project in Burkina Faso and 50% interest in the Prognoz
silver project in Russia.
RICARDO BOPP: Court Dismisses Chapter 11 Bankruptcy Case
--------------------------------------------------------
The Hon. S. Martin Teel, Jr., of the U.S. Bankruptcy Court for the
District of Columbia has dismissed the Chapter 11 bankruptcy case
of Ricardo A. Bopp.
The Debtor had requested Judge Teel to issue an order to vacate a
June 1, 2010 order dismissing the Debtor's bankruptcy case and to
further reinstate the case, or in the alternative, dismiss the
case without prejudice and grant the Debtor a reconsideration of
their Chapter 11 petition. According to the Debtor, his
bankruptcy case was dismissed with prejudice without just cause
for the consideration of factors related to the Debtor's legal
counsel, Wilfredo Pesante, Esq., at Pesante & Robinson, LLP, not
being adequately prepared to appear at the June 1, 2010 hearing to
defend the action.
The Debtor explained that due to oversight by the Debtor's
schedules haven't been filed due to the fact that Mr. Pesante was
"surprised" with misfortunate extenuating circumstances regarding
the loss of several family members during the pendency of the
Debtor's bankruptcy case and further recently encountered
unpredictable tragic events regarding an immediate family member,
whereby the counsel has had to postpone many scheduled court
appearances to attend to his son stricken with a surprised life
threatening illness.
According to the Debtor, Mr. Pesante has also encountered the
transition of new staff being hired at his law office and not
being able to locate essential records and documents related to
the Debtors' bankruptcy case as a result of Mr. Pesante's absence.
The Debtor said that he and Mr. Pesante are in the final process
of assembling and procuring creditor information to finalize the
creditor matrix and requisite schedules.
Mr. Pesante requested a 10-day extension to finalize the debtor
credit counseling certificate, schedules and creditor's matrix.
Judge Teel denied the Debtor's motion to vacate the order
dismissing the Debtor's bankruptcy case.
Washington, DC-based Ricardo A. Bopp filed for Chapter 11
bankruptcy protection on May 28, 2010 (Bankr. D.C. Case No. 10-
00527). The Company estimated its assets and debts at $10,000,001
to $50,000,000.
RICHARD J HINDIN: Plan Provides for Sale of Virginia Properties
---------------------------------------------------------------
Richard J. Hindin filed with the U.S. Bankruptcy Court for the
Eastern District of Virginia a Disclosure Statement explaining the
proposed Plan of Reorganization.
The Debtor will begin soliciting votes on the Plan following
approval of the adequacy of the information in the Disclosure
Statement.
According to the Disclosure Statement, the Plan proposes the
liquidation of the Debtor's two Virginia properties and the
distribution of the net proceeds from the sale of those
properties. In addition to this, the Plan proposes a series of
bi-annual payments to creditors over the course of five calendar
years equal to the approximate fair market value of the Debtor's
remaining non-exempt -- and chiefly, illiquid -- assets, totaling
$700,000, plus annual interest of 3%.
The Plan payments will be generated from the Debtor's post-
confirmation employment with Chicken Out Rotisserie, Inc., from
salary or other shareholder distributions expected to be received
from the Debtor's remaining closely-held investments and from cost
savings associated with no longer having to service the debt
encumbering 407 Chain Bridge Road.
All holders of allowed unsecured claims will receive pro rata
payments to be paid from the proceeds of the sale of the Plan
Property and from the Debtor Payments, in full satisfaction of the
claims.
A full-text copy of the Disclosure Statement is available for free
at http://bankrupt.com/misc/RichardHindin_DS.pdf
The Debtor is represented by:
Cooter, Mangold, Deckelbaum & Karas, LLP
Dale A. Cooter, Esq.
Stephen Nichols, Esq.
5301 Wisconsin Avenue, NW, Suite 500
Washington, DC 20015
Tel: (202) 537-0700
Fax: (202) 364-3664
About Richard J. Hindin
McLean, Virginia-based Richard J. Hindin filed for Chapter 11 on
November 27, 2009 (Bankr. E.D. Va. Case No. 09-19741.) Stephen W.
Nichols, Esq. at Cooter, Mangold, Deckelbaum & Karas, LLP
represents the Debtor in his restructuring effort. In his
petition, the Debtor listed assets and debts both ranging from
$10,000,001 to $50,000,000.
RITA MENDOZA: Case Summary & 11 Largest Unsecured Creditors
-----------------------------------------------------------
Debtor: Rita Mendoza
343 Skyline Drive
Vallejo, CA 94591
Bankruptcy Case No.: 10-35121
Chapter 11 Petition Date: June 9, 2010
Court: U.S. Bankruptcy Court
Eastern District of California (Sacramento)
Judge: Thomas Holman
Debtor's Counsel: Johnson P. Lazaro, Esq.
115 Sansome Street #1102
San Francisco, CA 94104
Tel: (415) 278-9577
Estimated Assets: $500,001 to $1,000,000
Estimated Debts: $1,000,001 to $10,000,000
According to the schedules, the Debtor says that assets total
$767,917 while debts total $1,958,165.
A copy of the Debtor's list of 11 largest unsecured creditors
filed together with the petition is available for free
at http://bankrupt.com/misc/caeb10-35121.pdf
The petition was signed by the Debtor.
ROBERT RUBIANO: Case Summary & 20 Largest Unsecured Creditors
-------------------------------------------------------------
Joint Debtors: Robert Rubiano
Maria Rubiano
822 Dancer Lane
Manalapan, NJ 07726
Bankruptcy Case No.: 10-27637
Chapter 11 Petition Date: June 8, 2010
Court: United States Bankruptcy Court
District of New Jersey (Trenton)
Judge: Michael B. Kaplan
Debtor's Counsel: Robert C. Nisenson, Esq.
Robert C. Nisenson, LLC
10 Auer Court, Suite E
East Brunswick, NJ 08816
Tel: (732) 238-8777
Fax: (732) 238-8758
E-mail: rnisenson@aol.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
A list of the Company's 20 largest unsecured creditors
filed together with the petition is available for free
at http://bankrupt.com/misc/njb10-27637.pdf
The petition was signed by Robert Rubiano and Maria Rubiano.
RPM HOLDINGS: Case Summary & 11 Largest Unsecured Creditors
-----------------------------------------------------------
Debtor: RPM Holdings, LLC
2150 Dryden Road
P.O. Box 6
Dryden, NY 13053
Bankruptcy Case No.: 10-31550
Chapter 11 Petition Date: June 8, 2010
Court: United States Bankruptcy Court
Northern District of New York (Syracuse)
Debtor's Counsel: Jeffrey A. Dove, Esq.
Menter, Rudin & Trivelpiece, P.C.
308 Maltbie Street, Suite 200
Syracuse, NY 13204-1498
Tel: (315) 474-7541
Fax: (315) 474-4040
E-mail: jdove@menterlaw.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
A list of the Company's 11 largest unsecured creditors
filed together with the petition is available for free
at http://bankrupt.com/misc/nynb10-31550.pdf
The petition was signed by Marvin G. Marshall, company's president
and CEO.
Debtor-affiliate that filed separate Chapter 11 petition:
Petition
Debtor Case No. Date
------ -------- ----
RPM Ecosystems Ithaca, LLC
RPM INTERNATIONAL: Performance Coating Buys Hummervoll of Norway
----------------------------------------------------------------
RPM International said Performance Coatings has acquired Norway-
based industrial flooring supplier Hummervoll Industribelegg AS
but terms of the deal were not disclosed, according to
dailymarkets.com.
About RPM
RPM International Inc., a holding company, owns subsidiaries that
are world leaders in specialty coatings, sealants, building
materials and related services serving both industrial and
consumer markets. RPM's industrial products include roofing
systems, sealants, corrosion control coatings, flooring coatings
and specialty chemicals. Industrial brands include Stonhard,
Tremco, illbruck, Carboline, Flowcrete, Universal Sealants and
Euco. RPM's consumer products are used by professionals and do-
it-yourselfers for home maintenance and improvement, boat repair
and maintenance, and by hobbyists.
* * *
Moody's Investors Service affirms RPM International Inc.'s Baa3
ratings after RPM announced plans to resolve the asbestos
litigation involving subsidiaries Specialty Products Holding Corp.
and Bondex International Inc. via the establishment of a 524(g)
bankruptcy trust. Moody's affirmation of RPM's ratings, despite
the vagaries of litigation and the uncertainty surrounding court
rulings, assumes that the filing will result in the cessation of
all current asbestos liability claims and that RPM's ultimate net
exposure will be no worse than the current long lived efforts at
resolving claims in state courts. Moody's estimates that final
resolution will not take place for 3-4 years. The initial credit
implications prior to a final settlement are modestly positive in
terms of cash flow and the deconsolidation of the asbestos balance
sheet reserve, which resides on Bondex's balance sheet. Moody's
expects the filing will have no near term impact on current credit
facilities and public debt.
RUTH SULLIVAN: Case Summary & 13 Largest Unsecured Creditors
------------------------------------------------------------
Debtor: Ruth Eilene Sullivan
Carneiro, Chumney & Co., LLC
c/o Barbara Jimmerson
40 NE Loop 410, Suite 200
San Antonio, TX 78216
Bankruptcy Case No.: 10-52195
Chapter 11 Petition Date: June 8, 2010
Court: United States Bankruptcy Court
Western District of Texas (San Antonio)
Judge: Leif M. Clark
Debtor's Counsel: William R. Davis, Jr., Esq.
Langley & Banack, Inc
745 E Mulberry Ave, Suite 900
San Antonio, TX 78212
Tel: (210) 736-6600
Fax: (210) 735-6889
E-mail: wrdavis@langleybanack.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 13 largest unsecured creditors
filed together with the petition is available for free
at http://bankrupt.com/misc/txwb10-52195.pdf
The petition was signed by Ruth Eilene Sullivan.
SD TRUST: Taps Cooper Law Firm to Handle Reorganization Case
------------------------------------------------------------
SD Trust, LLC, asks the U.S. Bankruptcy Court for the District of
South Carolina for permission to employ The Cooper Law Firm as
counsel.
The firm will, among other things:
-- provide the Debtor with legal advice with respect to its
power and duties as debtor-in-possession in the continued
management and control of its assets, and its
responsibilities regarding its liabilities to its creditors;
-- provide legal advice to the debtor-in-possession regarding
its responsibility to provide insurance and bank account
information; and
-- prepare the petition, schedules, statement of financial
affairs, plan of reorganization, disclosure statement, final
report, final accounting, final degree, well as any other
necessary applications, answers, orders, reports, or legal
documents relative to the Chapter 11 case.
Robert H. Cooper, Esq., the owner of the firm, tells the Court
that the firm received $25,000 in attorney fees and $1,039 court
costs.
The hourly rates of the firm's personnel are:
Mr. Cooper $295
Associate Lawyer $195
Paralegal $95
Mr. Cooper assures the Court that the firm is a "disinterested
person" as that term is defined in Section 101(14) of the
Bankruptcy Code.
Mr. Cooper can be reached at:
The Cooper Law Firm
3523 Pelham Road, Suite B
Greenville, SC 29615
Tel: (864) 271-9911
Fax: (864) 232-5236
E-mail: bknotice@thecooperlawfirm.com
About SD Trust, LLC
Greenville, South Carolina-based SD Trust, LLC, filed for Chapter
11 bankruptcy protection on April 30, 2010 (Bankr. D. S.C. Case
No. 10-03185). Robert H. Cooper, Esq., at Greenville, South
Carolina, assists the Company in its restructuring effort. The
Company estimated its assets and debts at $10,000,001 to
$50,000,000.
SEE KYMM: Case Summary & 12 Largest Unsecured Creditors
-------------------------------------------------------
Joint Debtors: See Myun Kymm
Ock Ja Kymm
24001 Fawnskin Drive
Corona, CA 92883
Bankruptcy Case No.: June 10, 2010
Chapter 11 Petition Date: 10-27879
Court: U.S. Bankruptcy Court
Central District of California (Riverside)
Judge: Ellen Carroll
Debtor's Counsel: Stuart J. Wald, Esq.
36154 Coffee Tree Place
Murrieta, CA 92562
Tel: (310) 429-3354
E-mail: stuart.wald@gmail.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $10,000,001 to $50,000,000
A copy of the Joint Debtors' list of 12 largest unsecured
creditors filed together with the petition is available for
free at http://bankrupt.com/misc/cacb10-27879.pdf
The petition was signed by the Joint Debtors.
SHANTRE INVESTMENTS: Case Summary & 12 Largest Unsecured Creditors
------------------------------------------------------------------
Debtor: Shantre Investments, Inc.
1742 Windsor Road
San Marino, CA 91108
Bankruptcy Case No.: 10-33566
Chapter 11 Petition Date: June 9, 2010
Court: U.S. Bankruptcy Court
Central District of California (Los Angeles)
Judge: Samuel L. Bufford
Debtor's Counsel: Alla Tenina, Esq.
822 N Vista Avenue #100
Los Angeles, CA 90046
Tel: (213) 596-0265
Fax: (818) 301-2046
E-mail: sashavk_1@yahoo.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $0 to $50,000
According to the schedules, the Company says that assets total
$2,147,000 while debts total $0.
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/cacb10-33566.pdf
The petition was signed by Trevor Dority, president.
SILGAN HOLDINGS: S&P Affirms 'BB+' Rating; Outlook Now Stable
-------------------------------------------------------------
Standard & Poor's Ratings Services said that it revised its
outlook on Silgan Holdings Inc. to stable from positive and
affirmed its 'BB+' corporate credit rating. S&P also affirmed its
ratings on Silgan's existing senior unsecured and subordinated
debt and left the recovery ratings on these issues unchanged.
At the same time, Standard & Poor's assigned an issue-level rating
of 'BBB' (two notches higher than the corporate credit rating) and
a recovery rating of '1' to the company's proposed credit
facilities, indicating the expectation for very high (90% to 100%)
recovery in the event of a payment default. The credit facilities
include a $550 million revolving credit facility maturing in 2015,
a $300 million term loan A, a Eur125 million term loan A, and a
C$81 million term loan (all term loans due in 2016). Proceeds
will be used to repay its existing credit facilities and for fees
and expenses. The company may also use a portion of proceeds to
redeem its 6.75% senior subordinated notes due 2013.
"The ratings on Silgan reflect its satisfactory business position
as a major North American producer of rigid consumer goods
packaging, its steady earnings and free cash-flow generation, and
its demonstrated ability to maintain, or quickly return to, a
capital structure consistent with the rating despite periodic
acquisitions," said Standard & Poor's credit analyst Liley Mehta.
"Somewhat aggressive financial policies and other risks associated
with the company's strategy of growth via acquisitions offset
these strengths."
Silgan has annual revenues of $3.1 billion. Its business mix is
about 63% metal food cans, 20% metal and plastic closures, and 17%
from plastic containers.
SPECIALTY PRODUCTS: Taps Richards Layton as Co-Counsel
------------------------------------------------------
Specialty Products Holding Corp., et al., have sought
authorization from the U.S. Bankruptcy Court for the District of
Delaware to employ Richards, Layton & Finger, P.A., as co-counsel,
nunc pro tunc to the Petition Date.
RL&F will, among other things:
a. prepare motions, applications, answers, orders, reports,
and papers in connection with the administration of the
Debtors' estates;
b. attend meetings and negotiations with representatives of
creditors, equity holders, prospective investors or
acquirers, and other parties-in-interest;
c. appear before the Court, any appellate courts, and the
Office of the U.S. Trustee to protect the Debtors'
interest; and
d. pursue approval of confirmation of a plan and approval of
the corresponding solicitation procedures and disclosure
statement.
By a separate application, the Debtors are also seeking to employ
Jones Day as bankruptcy counsel in their bankruptcy cases. Jones
Day and RL&F have discussed a division of responsibilities
regarding the Debtors' representative in the Debtors' cases and
will make every effort to avoid and/or minimize duplication of
services.
Daniel J. DeFranceschi, a director at RL&F, says that the firm
will be paid based on the hourly rates of its personnel:
Daniel J. DeFranceschi $600
Paul N. Heath $525
Zachary I. Shapiro $290
Kristine G. Manoukian $255
Tyler D. Semmelman $240
Ann Jerominski $195
Marisa C. DeCarli $195
Mr. DeFranceschi assures the Court that RL&F is "disinterested" as
that term is defined in Section 101(14) of the Bankruptcy Code.
Cleveland, Ohio-based Specialty Products Holdings Corp., aka RPM,
Inc., is a wholly owned subsidiary of RPM International Inc. The
Company is the holding company parent of Bondex International,
Inc., and the direct or indirect parent of certain additional
domestic and foreign subsidiaries. The company is a leading
manufacturer, distributor and seller of various specialty chemical
product lines, including exterior insulating finishing systems,
powder coatings, fluorescent colorants and pigments, cleaning and
protection products, fuel additives, wood treatments and coatings
and sealants, in both the industrial and consumer markets.
The Company filed for Chapter 11 bankruptcy protection on May 31,
2010 (Bankr. D. Del. Case No. 10-11780). Daniel J. DeFranceschi,
Esq., and Zachary I. Shapiro, Esq., at Richards Layton & Finger,
assist the Company in its restructuring effort.
Gregory M. Gordon, Esq., Dan B. Prieto, Esq., and Robert J. Jud,
Esq., at Jones Day, is the Company's co-counsel.
Logan and Company is the Company's claims and notice agent.
The Company estimated its assets and debts at $100,000,001 to
$500,000,000.
The Company's affiliate, Bondex International, Inc., filed a
separate Chapter 11 petition on May 31, 2010 (Case No. 10-11779),
estimating its assets and debts at $100,000,001 to $500,000,000.
SPECIALTY PRODUCTS: May Hire Logan & Co. as Claims Agent
--------------------------------------------------------
Specialty Products Holding Corp. and its debtor-affiliates won
authority from the Hon. Kevin J. Carey of the U.S. Bankruptcy
Court for the District of Delaware to employ Logan & Company Inc.
as claims and noticing agent. The Debtors have said the large
number of creditors and other parties-in-interest involved in the
Debtors' Chapter 11 cases may impose heavy administrative and
other burdens upon the Court and the Office of the Clerk of the
Bankruptcy Court. Logan's employment will relieve the Court and
the Clerk's Office of these burdens, the Debtors have said.
Among other things, Logan will assist the Debtors in filing their
schedules of assets and liabilities, and statement of financial
affairs; prepare and serve required notices in the Chapter 11
cases; maintain copies of all proofs of claim and proofs of
interest filed in the cases; maintain official claims registers;
and create and maintain a public access Web site.
The Debtors have provided Logan with a $35,000 security retainer.
About Specialty Products Holdings
Cleveland, Ohio-based Specialty Products Holdings Corp., is a
wholly owned subsidiary of RPM International Inc. SPHC is the
holding company parent of Bondex International, Inc., and parent
of certain additional domestic and foreign non-debtor
subsidiaries. SPHC, through its subsidiaries, is a manufacturing,
distributor and seller of various specialty chemical product
lines, including exterior insulating finishing systems, powder
coatings, fluorescent colorants and pigments, cleaning and
protection products, fuel additives, wood treatments and coatings
and sealants, in both the industrial and consumer markets.
The Company is a defendant in various asbestos-related bodily
injury lawsuits filed in various state courts. The lawsuits seek
unspecified damages for asbestos-related diseases based on alleged
exposures to asbestos-containing products previously manufactured
by the Company or others.
Specialty Products Holdings filed for Chapter 11 bankruptcy
protection on May 31, 2010 (Bankr. D. Del. Case No. 10-11780).
Daniel J. DeFranceschi, Esq., and Zachary I. Shapiro, Esq., at
Richards Layton & Finger, assist the Company in its restructuring
effort.
Gregory M. Gordon, Esq., Dan B. Prieto, Esq., and Robert J. Jud,
Esq., at Jones Day, is the Company's co-counsel. Logan and
Company is the Company's claims and notice agent. The Company
estimated its assets and debts at $100,000,001 to $500,000,000.
Bondex International, Inc., filed a separate Chapter 11 petition
on May 31, 2010 (Case No. 10-11779), estimating its assets and
debts at $100,000,001 to $500,000,000. Parent RPM International
Inc. did not file for bankruptcy.
SPECIALTY PRODUCTS: Hires Jones Day as Bankruptcy Counsel
---------------------------------------------------------
The Hon. Kevin J. Carey of the U.S. Bankruptcy Court for the
District of Delaware will convene a hearing on June 28, 2010, at
10:00 a.m. in Wilmington to consider a request by Specialty
Products Holding Corp. and its debtor-affiliates to employ Jones
Day as bankruptcy counsel.
Jones Day will render general legal services to the Debtors as
needed throughout the course of their Chapter 11 cases, including
bankruptcy, corporate, environment, finance, litigation, real
estate and tax advice.
Jones Day is familiar with the Debtors' businesses. In connection
with various prepetition matters, Jones Day's professionals have
worked closely with the Debtors' management and other
professionals and, as a result, have become acquainted with the
Debtors' history, operations, capital structure and related
matters. Jones Day has developed substantial knowledge regarding
the Debtors that will result in effective and efficient services
in the Chapter 11 cases.
Gregory M. Gordon, Esq., a partner of Jones Day, will lead the
Jones Day team. Jones Day will charge $325 per hour to $875 per
hour for its services.
On March 12, 2010, the Debtors provided Jones Day with a $750,000
evergreen retainer. As of the Petition Date, the retainer
remained unapplied.
In the one-year period preceding the Petition Date, Jones Day
received payments from the Debtors, including the retainer,
totaling $2,232,209 relating to restructuring and Chapter 11
planning.
Mr. Gordon attests that the law firm has no connection with the
Debtors, their creditors, the United States Trustee and other
parties-in-interest in matters related to the Debtors' cases.
Otherwise, Gordon says the firm represents SPHC's and Bondex's
parent, RPM International, in connection with international
corporate matters unrelated to the Chapter 11 cases. The law firm
also represented PNC Bank, N.A., agent for RPM International's
prepetition unsecured credit facility, in the negotiation and
documentation of the International Credit Facility.
About Specialty Products Holdings
Cleveland, Ohio-based Specialty Products Holdings Corp., is a
wholly owned subsidiary of RPM International Inc. SPHC is the
holding company parent of Bondex International, Inc., and parent
of certain additional domestic and foreign non-debtor
subsidiaries. SPHC, through its subsidiaries, is a manufacturing,
distributor and seller of various specialty chemical product
lines, including exterior insulating finishing systems, powder
coatings, fluorescent colorants and pigments, cleaning and
protection products, fuel additives, wood treatments and coatings
and sealants, in both the industrial and consumer markets.
The Company is a defendant in various asbestos-related bodily
injury lawsuits filed in various state courts. The lawsuits seek
unspecified damages for asbestos-related diseases based on alleged
exposures to asbestos-containing products previously manufactured
by the Company or others.
Specialty Products Holdings filed for Chapter 11 bankruptcy
protection on May 31, 2010 (Bankr. D. Del. Case No. 10-11780).
Daniel J. DeFranceschi, Esq., and Zachary I. Shapiro, Esq., at
Richards Layton & Finger, assist the Company in its restructuring
effort.
Gregory M. Gordon, Esq., Dan B. Prieto, Esq., and Robert J. Jud,
Esq., at Jones Day, is the Company's co-counsel. Logan and
Company is the Company's claims and notice agent. The Company
estimated its assets and debts at $100,000,001 to $500,000,000.
Bondex International, Inc., filed a separate Chapter 11 petition
on May 31, 2010 (Case No. 10-11779), estimating its assets and
debts at $100,000,001 to $500,000,000. Parent RPM International
Inc. did not file for bankruptcy.
SPIRIT AIRLINES: Halts All Flights Thru Tuesday Amid Pilot Strike
-----------------------------------------------------------------
The Wall Street Journal's Susan Carey reports that Spirit Airlines
Inc., which carried 6.1 million passengers last year, canceled all
of its flights over the weekend, affecting more than 32,000
travelers. Spirit Airlines said it will cancel all of its flights
through Tuesday as a pilots' strike stretched into its third day
Monday.
Spirit said in a statement it is "continuing to work with our
pilot union to reach a fair and equitable agreement."
According to the Journal, the airline's 450 pilots legally walked
off the job early Saturday morning over a dispute about pay and
benefits, the first strike at a U.S. passenger airline in nearly
five years. The Journal says the job action came after more than
three years of negotiations between the Air Line Pilots
Association and Spirit management, and followed the expiration of
a federally mandated 30-day "cooling off" period.
The Journal relates the union's negotiating group has rejected
this proposal by Spirit:
-- more than 30% in pay increases totaling $70 million over
five years, "net of productivity gains;"
-- $3,000 contract-signing bonuses; and
-- more time off between trips.
According to Ms. Carey, Capt. Sean Creed, chairman of the ALPA
group at Spirit, said his pilots won't return to their cockpits
until they receive an offer that lifts their wages and benefits to
the level of discounters such as JetBlue Airways Corp. and AirTran
Holdings Inc.'s AirTran Airways.
Ms. Carey also relates the pilot chief said in an interview that
the 30% pay raise Spirit advertised in its five-year contract
offer would extend over an eight-and-a-half year period, including
the latest negotiations cycle. A 10-year captain at JetBlue earns
$158 an hour and a 10-year first officer $114. That compares with
$123 an hour for a 10-year Spirit pilot and $71 for a Spirit first
officer, he said, according to Ms. Carey. The report also notes
Capt. Creed said his union is telling other airlines whose pilots
are represented by the same union that if their employers put on
extra flights for Spirit, "that would be struck work." But if the
airlines sell seats to Spirit to help stranded travelers, it won't
be regarded as a problem for the union. He said he doesn't know
how long the strike will last.
Ms. Carey relates that Spirit Chief Executive Ben Baldanza on
Sunday said the company extended the cancellation through Tuesday.
Spirit is offering customers of the flights that were scrubbed a
full refund and $100 vouchers good for future trips.
Spirit Airlines Inc. -- http://www.spiritair.com/-- is a low-cost
carrier for the U.S., Central and South America, and the
Caribbean.
SPIRIT FINANCE: S&P Downgrades Corporate Credit Rating to 'SD'
--------------------------------------------------------------
Standard & Poor's Ratings Services lowered its corporate credit
rating on Spirit Finance Corp. to 'SD' (selective default) from
'CC'. At the same time, S&P lowered its rating on the company's
$850 million secured term loan to 'D' from 'CC'. S&P maintain a
recovery rating of '5' on the term loan.
"The downgrades reflect the company's successful bid to repurchase
a portion of its term loan at a discount, an action that S&P view
as equivalent to default," said credit analyst Elizabeth Campbell.
S&P expects to raise the corporate credit rating to 'CCC-' with a
negative outlook immediately following this downgrade. S&P will
maintain the term loan issue rating at 'D' until S&P is reasonably
comfortable that additional discounted repurchases are unlikely,
as S&P currently expects Spirit will pursue additional repurchase
offers through February 2011.
SPRINGFIELD GREEN: Voluntary Chapter 11 Case Summary
----------------------------------------------------
Debtor: Springfield Green Associates, LP
c/o Jeffrey Kurtzman, Esq.
Klehr Harrison Harvey Branzburg LLP
1835 Market Street
Suite 1400
Philadelphia, PA 19107
Bankruptcy Case No.: 10-14741
Chapter 11 Petition Date: June 8, 2010
Court: United States Bankruptcy Court
Eastern District of Pennsylvania (Philadelphia)
Judge: Magdeline D. Coleman
Debtor's Counsel: Jeffrey Kurtzman, Esq.
Klehr Harrison Harvey Branzburg LLP
1835 Market Street
Suite 1400
Philadelphia, PA 19103
Tel: (215) 569 4493
Fax: (215) 568-6603
E-mail: jkurtzma@klehr.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 Mark Levin, manager of general partner.
Debtor-affiliate that filed separate Chapter 11 petition:
Petition
Debtor Case No. Date
------ -------- ----
Drexelview Club Associates, LP 10-14735 06/08/10
SRV & ASSOCIATES: Court Dismisses Reorganization Case
-----------------------------------------------------
The Hon. Eugene R. Wedoff of the U.S. Bankruptcy Code for the
Northern District of Illinois dismissed the Chapter 11 case of SRV
& Associates, LL.
The Court also directed the Debtor to pay $975 to the U.S.
Trustee.
Kissimmee, Florida-based SRV & Associates, LLC, dba Saratoga
Resorts Villas, is a single asset real estate debtor. The Company
filed for Chapter 11 bankruptcy protection on April 9, 2010
(Bankr. N.D. Ill. Case No. 10-15778). Michael L Flynn, Esq., who
has an office in Downers Grove, Illinois, assisted the Company in
its restructuring effort. The Company estimated its assets and
debts at $10,000,001 to $50,000,000.
STANT CORP: Unsecured Creditors to Recover Up to 3.01% of Claims
----------------------------------------------------------------
Stant Corp., nka SPC Seller Inc., et al., together with the
Official Committee of Unsecured Creditors, filed with the U.S.
Bankruptcy Court for the District of Delaware a Disclosure
Statement relating to their amended Plan of Reorganization.
The Debtors and the Committee will begin soliciting votes on the
Plan following approval of the adequacy of the information in the
Disclosure Statement.
According to the Disclosure Statement, the Plan provides for the
purchaser to assume the DIP facility claims and senior secured
lenders claims and deemed paid in full pursuant to the APA and
sale order.
By consent, the holders of junior prepetition note claims will
receive the Northstar consideration (a) $100,000; and (b) warrants
for $1.75% of the fully diluted common equity of the purchaser.
Holders General unsecured claims have an estimated percentage
recovery of 2.51% to 3.01%.
The Plan cancels all interests in the Debtors. Holders of
interests will receive no distribution under the Plan.
A full-text copy of the amended Disclosure Statement is available
for free at http://bankrupt.com/misc/StantParent_amendedDS.pdf
About Stant Corp.
Stant Corp. and five affiliated companies filed for Chapter 11
bankruptcy protection on July 27, 2009 (Bankr. D. Del. 09-12647).
Sandra G.M. Selzer, Esq., and Scott D. Cousins, Esq., at Greenberg
Traurig, LLP, in Wilmington, Delaware, serve as the Debtors'
counsel. In its petition, Stant Corp. listed $50 million to
$100 million in debts against $50 million to $100 million in
assets.
STUDIO CITY: Voluntary Chapter 11 Case Summary
----------------------------------------------
Debtor: Studio City Partners, Inc.
dba Platinum Live
12760 Kahlenberg Lane
Valley Village, CA 91607
Bankruptcy Case No.: 10-16840
Chapter 11 Petition Date: June 8, 2010
Court: U.S. Bankruptcy Court
Central District of California (San Fernando Valley)
Judge: Geraldine Mund
Debtor's Counsel: Leslie A. Cohen, Esq.
Leslie Cohen Law PC
506 Santa Monica Boulevard, Suite 200
Santa Monica, CA 90401
Tel: (310) 394-5900
Fax: (310) 394-9280
E-mail: leslie@lesliecohenlaw.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 James DeRentils, president.
SUK HEE SUH: US Trustee Wants Case Converted to Ch. 7 Liquidation
-----------------------------------------------------------------
Peter C. Anderson, U.S. Trustee for Region 16, asks the U.S.
Bankruptcy Court for the Central District of California to convert
the Chapter 11 case of Suk Hee Suh to one under Chapter 7 of the
Bankruptcy Code.
The U.S. Trustee explained that the Debtor failed to:
-- comply with the requirements of the U.S. Trustee; and
-- to date, the Debtor has not filed a Disclosure Statement or
Chapter 11 Plan.
The U.S. Trustee proposes a hearing on the conversion of the
Debtor's case on June 15, 2010, at 9:30 a.m. at Courtroom 1675,
255 E. Temple Street, Los Angeles, California.
La Canada Flintridge, California-based Suk Hee Suh filed for
Chapter 11 bankruptcy protection on April 9, 2010 (Bankr. C.D.
Calif. Case No. 10-23682). Robert M. Yaspan, Esq., at the Law
Offices of Robert M Yaspan, assists the Company in its
restructuring effort. The Company estimated its assets and debts
at $10,000,000 to $50,000,000.
SUNGARD DATA: Bank Debt Trades at 4% Off in Secondary Market
------------------------------------------------------------
Participations in a syndicated loan under which SunGard Data
Systems, Inc., is a borrower traded in the secondary market at
95.97 cents-on-the-dollar during the week ended Friday, June 11,
2010, according to data compiled by Loan Pricing Corp. and
reported in The Wall Street Journal. This represents a drop of
1.06 percentage points from the previous week, The Journal
relates. The Company pays 362.5 basis points above LIBOR to
borrow under the facility. The bank loan matures on Feb. 28,
2016, and carries Moody's Ba3 rating and Standard & Poor's BB
rating. The debt is one of the biggest gainers and losers among
185 widely quoted syndicated loans with five or more bids in
secondary trading for the week ended Friday.
SunGard Data Systems, Inc., headquartered in Wayne, Pennsylvania,
is a provider of software and IT services to the financial
services industry well as higher education institutions and the
public sector. SunGard also provides disaster recovery/business
continuity services through its Availability Services division.
As stated by the Troubled Company Reporter on Sept. 1, 2009,
Moody's Investors Service affirmed SunGard's 'B2' corporate family
and probability of default ratings, along with its SGL-2
speculative grade liquidity rating.
Standard & Poor's Ratings Services rates (i) SunGard's corporate
rating at 'B+', and its (ii) $2.7 billion tranche B secured term
loan maturing Feb. 28, 2016, and the $580 million secured
revolving credit facility maturing May 11, 2013, at 'BB'.
SUNGARD DATA: Bank Debt Trades at 6% Off in Secondary Market
------------------------------------------------------------
Participations in a syndicated loan under which SunGard Data
Systems, Inc., is a borrower traded in the secondary market at
94.25 cents-on-the-dollar during the week ended Friday, June 11,
2010, according to data compiled by Loan Pricing Corp. and
reported in The Wall Street Journal. This represents a drop of
0.70 percentage points from the previous week, The Journal
relates. The Company pays 375 basis points above LIBOR to borrow
under the facility. The bank loan matures on Feb. 28, 2014, and
carries Moody's Ba3 rating and Standard & Poor's BB rating. The
debt is one of the biggest gainers and losers among 185 widely
quoted syndicated loans with five or more bids in secondary
trading for the week ended Friday.
SunGard Data Systems, Inc., headquartered in Wayne, Pennsylvania,
is a provider of software and IT services to the financial
services industry well as higher education institutions and the
public sector. SunGard also provides disaster recovery/business
continuity services through its Availability Services division.
As stated by the Troubled Company Reporter on Sept. 1, 2009,
Moody's Investors Service affirmed SunGard's 'B2' corporate family
and probability of default ratings, along with its SGL-2
speculative grade liquidity rating.
Standard & Poor's Ratings Services rates (i) SunGard's corporate
rating at 'B+', and its (ii) $2.7 billion tranche B secured term
loan maturing Feb. 28, 2016, and the $580 million secured
revolving credit facility maturing May 11, 2013, at 'BB'.
SVS HOLDINGS: Case Summary & 4 Largest Unsecured Creditors
----------------------------------------------------------
Debtor: SVS Holdings, Inc.
717 17th Street, Suite 310
Denver, CO 80202
Bankruptcy Case No.: 10-24238
Chapter 11 Petition Date: June 8, 2010
Court: U.S. Bankruptcy Court
District of Colorado (Denver)
Judge: Howard R. Tallman
Debtor's Counsel: Kevin S. Neiman, Esq.
1660 Lincoln Street, Suite 1900
Denver, CO 80264
Tel: (303) 996-8600
Fax: 303-966-8636
E-mail: kneiman@hblegal.net
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 4 largest unsecured creditors
filed together with the petition is available for free
at http://bankrupt.com/misc/cob10-24238.pdf
The petition was signed by Kevin Hurst, chief executive officer.
TERRI BOWERSOCK: Files for Chapter 7 Bankruptcy in Phoenix
----------------------------------------------------------
Max Jarman of The Arizona Republic reports that Terri Bowersock
filed for bankruptcy under Chapter 7 in the U.S. Bankruptcy Court
in Phoenix, saying she expanded too fast and was unable to cope
with the economic downturn. She listed assets of $52,885 and
debts of $5.14 million.
According to the report, there would likely be little to pay debts
after attorneys fees and court costs are paid, and unsecured
creditors have not security interest in a business that could help
them collect debts.
Thomas Allen, Esq., represents Ms. Bowersock.
TEXAS CLASSIC: Plan Outline Hearing Continued until June 16
-----------------------------------------------------------
The Hon. Jeff Bohm of the U.S. Bankruptcy Court Southern District
of Texas has continued until June 16, 2010, at 2:30 p.m., the
hearing on approval of Disclosure Statement explaining Texas
Classic Homes, LP's Plan of Reorganization. The hearing will be
held at Room 600, 6th Floor, 515 Rusk Street, Houston, Texas.
Objections were due June 9.
The Debtors will begin soliciting votes on the Plan following
approval of the adequacy of the information in the Disclosure
Statement.
According to the Disclosure Statement, the the Plan proposes that
the Debtor continue its business operations and pay claims from
proceeds from the sale of the property.
General unsecured claims ($1,030,925) will be paid their pro rata
share of the proceeds received from the sale of assets after
payment of all allowed administrative, priority and secured
claims.
The shareholders of the Debtor's estate will retain their equity
interest in the Reorganized Debtor, but will receive no
distribution unless all allowed claims have been paid in full.
A full-text copy of the Disclosure Statement is available for free
at http://bankrupt.com/misc/TexasClassic_DS.pdf
About Texas Classic Homes
Richmond, Texas-based Texas Classic Homes, LP, filed for Chapter
11 on November 3, 2009 (Bankr. S.D. Tex. Case No. 09-38472).
According to the schedules, the Company has assets of $10,293,577,
and total debts of $6,608,751.
TEXAS CLASSIC: Sale of Richmond Property Gets Court Approval
------------------------------------------------------------
The Hon. Jeff Bohm of the U.S. Bankruptcy Court Southern District
of Texas authorized Texas Classic Homes, LP, to sell its real
property located at 2415 Creektail Lane, Richmond, Texas, free and
clear of all liens, claims and encumbrances.
The property will be sold per the residential sales contract.
The Court also directed Fidelity National to wire or deliver
$10,000 to Jack N. Fuerst, counsel of the Debtor, and Mr. Fuerst
will deposit the sales proceeds into the trust account until
further order of the Court.
Richmond, Texas-based Texas Classic Homes, LP, filed for Chapter
11 on November 3, 2009 (Bankr. S.D. Tex. Case No. 09-38472).
According to the schedules, the Company has assets of $10,293,577,
and total debts of $6,608,751.
TEXAS RANGERS: Disclosure Statement Hearing Set for June 15
-----------------------------------------------------------
The U.S. Bankruptcy Court for the Northern District of Texas has
set a hearing for June 15, 2010, at 10:30 a.m. on the confirmation
of Texas Rangers Baseball Partners' disclosure statement for the
Debtors' prepackaged plan.
The Debtor filed a joint prepackaged plan of reorganization and
disclosure statement with the Court.
The Plan provides for the sale of substantially all of the assets
of the Debtor -- including the Texas Rangers Major League Baseball
Club - to Rangers Baseball Express LLC (the Purchaser), an entity
controlled by Chuck Greenberg and Nolan Ryan, through the
Prepackaged Plan (the Sale). As a result of the Sale, all
creditors of the Debtor will receive payment in full of all of
their allowed claims. Most claims will be assumed by the
Purchaser. Claims that are not assumed by the Purchaser will be
paid in full by the Debtor from the proceeds of the Sale,
including the $75 million of obligations under the HSG Credit
Agreement guaranteed by the Debtor. After months of negotiations,
numerous discussions with the Office of the Commissioner of
Baseball, and extensive analysis of its options, the Debtor
believes that consummation of the Sale is in the best interest of
all creditors and equity holders, and is in the best interest of
the Texas Rangers franchise and Major League Baseball.
Copies of the Plan and disclosure statement are available for free
at:
http://bankrupt.com/misc/TEXAS_RANGERS_plan.pdf
http://bankrupt.com/misc/TEXAS_RANGERS_ds.pdf
Treatment of Claims
To the extent an Allowed Administrative Claim is assumed by the
Purchaser under the Asset Purchase Agreement, that Claim will be
paid by the Purchaser in the ordinary course of business as and
when due. Administrative Expense Claims representing liabilities
incurred by the Debtor in the ordinary course of business,
consistent with past practice, whether incurred in the ordinary
course of business, that are not assumed by the Purchaser will be
paid by the Debtor in accordance with the terms and conditions of
the particular transaction and any related agreements and
instruments. All other Administrative Expense Claims will be
paid, in full satisfaction, settlement, and release of, and in
exchange for, such Allowed Administrative Expense Claim, in full,
in Cash, on the Effective Date or as soon thereafter as is
practicable, or on such other terms to which the Debtor and the
holder of the Administrative Expense Claim agree.
Professional compensation and reimbursement claims will be paid in
full, in cash.
Under the Asset Purchase Agreement, the Purchaser will assume all
of the Debtor's tax obligations for suite sales taxes, taxes
related to the Purchased Assets for all taxable periods (or
portions thereof) beginning after the Closing Date of the Asset
Purchase Agreement, and transfer taxes applicable to the transfer
of the Purchased Assets. The priority tax claims will be paid in
full, in cash.
On the Effective Date, all DIP Claims payable in Cash will be
indefeasibly paid in full in Cash from, inter alia, the proceeds
of the Asset Purchase Agreement.
With respect to classified claims:
Classification Treatment
-------------- ---------
Class 1 Priority Non-Tax Claims Unimpaired. Most Allowed
Priority Non-Tax Claims, if any,
will be assumed by Purchaser and
paid in Cash. With respect to
any Allowed Priority Non-Tax
Claim not assumed by the
Purchaser, except to the extent
that a holder agrees to less
favorable treatment, each holder
of an Allowed Priority Non-Tax
Claim will receive Cash equal to
the allowed amount of the
Priority Non-Tax Claim.
Class 2 First Lien Holder Claims Unimpaired. Each holder of an
Allowed First Lien Holder Claim
will receive Cash equal to
the Allowed amount of the First
Lien Holder Claim. Holders of
Allowed First Lien Holder Claims
and holders of Allowed Second
Lien Holder Claims are entitled
to one satisfaction in the
amount of $75 million in the
aggregate. On the Effective
Date, an amount of Cash equal to
$75 million (or the amount
outstanding under the First Lien
Credit Agreement and Second Lien
Credit Agreement if less than
$75 million is outstanding in
the aggregate under the First
Lien Credit Agreement and Second
Lien Credit Agreement on the
Effective Date) will be paid to
JPMorgan Chase Bank, N.A., as
collateral agent for the holders
of Allowed First Lien Holder
Claims, to be applied in
accordance with the First Lien
Credit Agreement, the Second
Lien Credit Agreement, and the
intercreditor agreement among
the holders of the First Lien
Holder Claims and the Second
Lien Holder Claims.
Class 3 Second Lien Holder Unimpaired. Except to the
Claims extent that a holder agrees to
less favorable treatment, each
holder of an Allowed Second Lien
Holder Claim will receive Cash
equal to the Allowed amount of
the Second Lien Holder Claim.
Holders of Allowed First Lien
Holder Claims and holders of
Allowed Second Lien Holder
Claims are entitled to one
satisfaction in the amount of
$75 million in the aggregate.
On the Effective Date, an amount
of Cash equal to $75 million (or
the amount outstanding under the
First Lien Credit Agreement and
Second Lien Credit Agreement if
less than $75 million is
outstanding in the aggregate
under the First Lien Credit
Agreement and Second Lien Credit
Agreement on the Effective Date)
will be paid to JPMorgan Chase
Bank, N.A., as collateral agent
for the holders of Allowed First
Lien Holder Claims, to be
applied in accordance with the
First Lien Credit Agreement, the
Second Lien Credit Agreement,
and the intercreditor agreement
among the holders of the First
Lien Holder Claims and the
Second Lien Holder Claims.
Class 4 MLB Prepetition Claim Unimpaired. On the Effective
Date, the MLB Prepetition Claim
will be paid in full in Cash
from, inter alia, the proceeds
of the Asset Purchase Agreement,
as provided therein.
Class 5 Secured Tax Claims Unimpaired. Certain Secured Tax
Claims related to the Purchased
Assets (as defined herein) for
all taxable periods (or portions
thereof) beginning after the
date of the closing (the Closing
Date) of the Asset Purchase
Agreement will be assumed by the
Purchaser under the Asset
Purchase Agreement. Each holder
of the Allowed Secured Tax Claim
will retain its existing lien,
if any, in the Purchased Assets,
and will be paid in Cash by the
Purchaser when such Allowed
Secured Tax Claim becomes due
and owing in the ordinary course
of business. With respect to
any Allowed Secured Tax Claim
not assumed by the Purchaser,
except to the extent that a
holder agrees to less favorable
treatment, each holder of any
other Allowed Secured Tax Claim
will retain its existing lien,
if any, and will be paid in Cash
equal to the Allowed amount of
the Secured Tax Claim on the
later of (i) the Effective Date
and (ii) the date the Allowed
Secured Tax Claim becomes due
and owing in the ordinary course
of business.
Class 6 Other Secured Claims Unimpaired. Other Secured
Claims will be assumed by the
Purchaser under the Asset
Purchase Agreement. Each holder
of an Allowed Other Secured
Claim will either (i) retain its
existing lien in the Purchased
Assets and be paid by the
Purchaser when the Allowed Other
Secured Claim becomes due and
owing in the ordinary course of
business, or (ii) receive Cash
in an amount equal to the
Allowed Other Secured Claim,
including any interest on the
Allowed Other Secured Claim
required to be paid.
Class 7 Assumed General Unimpaired. Assumed General
Unsecured Claims Unsecured Claims are General
Unsecured Claims that will be
assumed by the Purchaser under
the Asset Purchase Agreement.
Each holder of an Allowed
Assumed General Unsecured Claim
will be paid by the Purchaser
when the Assumed General
Unsecured Claim becomes due and
Owing in the ordinary course of
business.
Class 8 Non-Assumed General Unimpaired. Non-Assumed General
Unsecured Claims Unsecured Claims are General
Unsecured Claims that will not
be assumed by the Purchaser
under the Asset Purchase
Agreement. Each holder of an
Allowed Non-Assumed General
Unsecured Claim will: (i) to the
extent the Allowed Non-Assumed
General Unsecured Claim is due
and owing on the Effective Date,
(x) be paid in full in Cash on
the later of the Effective Date
and the date the claim becomes
an Allowed Non-Assumed General
Unsecured Claim, or (y)
otherwise be paid in accordance
with the terms of any agreement
between the Debtor and the
holder; (ii) to the extent the
Allowed Non-Assumed General
Unsecured Claim is not by its
terms due and owing on the
Effective Date, paid when and as
the Allowed Non-Assumed General
Unsecured Claim becomes due and
owing in the ordinary course of
business; or (iii) receive
treatment that leaves unaltered
the legal, equitable and
contractual rights to which the
Allowed Non-Assumed General
Unsecured Claim entitles the
holder of the Claim.
Class 9 Emerald Diamond Claim Unimpaired. Each holder of an
Allowed Emerald Diamond Claim
will receive Cash equal to the
amount of the Allowed Emerald
Diamond Claim.
Class 10 Overdraft Protection Unimpaired. Except to the
Agreement Claim extent that a holder of an
Allowed Overdraft Protection
Agreement Claim agrees to less
Favorable treatment of the
Allowed Overdraft Protection
Agreement Claim, each holder of
an Allowed Overdraft Protection
Agreement Claim shall, in full
satisfaction, settlement,
release, and discharge of, and
in exchange for, the Allowed
Overdraft Protection Agreement
Claim, be paid in full in Cash
in an amount equal to the
Allowed Overdraft Protection
Agreement Claim.
Class 11 Intercompany Claims Unimpaired. The legal,
equitable and contractual rights
of the holders of Allowed
Intercompany Claims will be
unaltered by the Prepackaged
Plan, or the Allowed
Intercompany Claims will
otherwise be rendered
unimpaired.
Class 12 TRBP Equity Interests Unimpaired. The legal,
equitable and contractual rights
of the holders of Allowed TRBP
Equity Interests will be
unaltered by the Prepackaged
Plan.
About Texas Rangers
Texas Rangers Baseball Partners owns and operates the Texas
Rangers Major League Baseball Club, a professional baseball club
in the Dallas/Fort Worth Metroplex. TRBP is a Texas general
partnership, in which subsidiaries of HSG Sports Group LLC own a
100% stake. Controlled by Thomas O. Hicks, HSG also indirectly
wholly-owns Dallas Stars, L.P., which owns and operates the Dallas
Stars National Hockey League franchise. The Texas Rangers have
had five owners since the club moved to Arlington in 1972. Mr.
Hicks became the fifth owner in the history of the Texas Rangers
on June 16, 1998.
In its petition, Texas Rangers Baseball Partners said it had both
assets and debt of less than $500 million.
Weil, Gotshal & Manges LLP serves as bankruptcy counsel to the
Debtor. Forshey & Prostok LLP serves as conflicts counsel.
Parella Weinberg Partners LP serves as financial advisor.
Lenders to the Texas Rangers sought to force the baseball team's
equity owners -- Rangers Equity Holdings, L.P. and Rangers Equity
Holdings GP, LLC -- into bankruptcy court protection (Bankr. N.D.
Tex. Case No. 10-43624 and 10-43625). The lenders, a group that
includes investment funds Monarch Alternative Capital and
Kingsland Capital Management, filed an involuntary bankruptcy
petition on May 28 against the two companies. The two companies
were not included in the May 24 Chapter 11 filing of TRBP.
TITLEMAX FINANCE: S&P Assigns 'B+' Counterparty Credit Rating
-------------------------------------------------------------
Standard & Poor's Ratings Services said that it assigned 'B+'
long-term counterparty credit ratings to California-based TitleMax
Finance Corp. and TMX Finance LLC, the co-issuers of $225 million
in senior secured notes. The outlook is stable. S&P is rating
the senior secured notes 'B+', with a recovery rating of '3'.
"Strong earnings, limited credit risk, and low leverage support
the ratings," said Standard & Poor's credit analyst Jeffrey Zaun.
"In addition, economic, and especially regulatory conditions that
have hurt the firm's competitors and tightened consumer credit are
likely to improve the firm's strategic position."
Nevertheless, a lack of funding diversity; a history of funding
problems, which led the company to a bankruptcy filing in 2009;
and a monoline business profile limit S&P's rating on TitleMax.
TitleMax offers amortizing loans secured by automobile titles
through 550 stores concentrated mostly in the southeastern U.S.
The stable outlook balances good financial performance and
improved funding against the additional operational and financial
risks attending the firm's expansion.
TRENT HOLDINGS: Case Summary & 9 Largest Unsecured Creditors
------------------------------------------------------------
Debtor: Trent Holdings, LLC
11301 West Olympic Boulevard, Suite 206
Los Angeles, CA 90064
Bankruptcy Case No.: 10-33320
Chapter 11 Petition Date: June 8, 2010
Court: U.S. Bankruptcy Court
Central District of California (Los Angeles)
Judge: Alan M. Ahart
Debtor's Counsel: Sandford Frey, Esq.
633 W Fifth Street, 51st Floor
Los Angeles, CA 90071
Tel: (213) 614-1944
E-mail: Sfrey@cmkllp.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/cacb10-33320.pdf
The petition was signed by Sina Akhtarzad, manager.
TRIBUNE CO: U.S. Trustee Objects to Latest Bonus Plan
-----------------------------------------------------
Bankruptcy Law360 reports that the U.S. trustee on Thursday
criticized The Tribune Co.'s efforts to pay roughly $21 million in
bonuses to its managers and other key employees, saying the
bankrupt media giant should not be allowed to give out more
bonuses while seeking to confirm a plan that leaves several
creditor classes empty-handed.
U.S. Trustee Roberta A. DeAngelis objected to Tribune's $10.6
million transition management incentive program for 21 managers
plus a discretionary $1.3 million for 50 other employees,
according to Law360.
About Tribune Co.
Headquartered in Chicago, Illinois, Tribune Co. --
http://www.tribune.com/-- is a media company, operating
businesses in publishing, interactive and broadcasting, including
ten daily newspapers and commuter tabloids, 23 television
stations, WGN America, WGN-AM and the Chicago Cubs baseball team.
The Company and 110 of its affiliates filed for Chapter 11
protection on Dec. 8, 2008 (Bankr. D. Del. Lead Case No. 08-
13141). The Debtors proposed Sidley Austion LLP as their counsel;
Cole, Schotz, Meisel, Forman & Leonard, PA, as Delaware counsel;
Lazard Ltd. and Alvarez & Marsal North Americal LLC as financial
advisors; and Epiq Bankruptcy Solutions LLC as claims agent. As
of Dec. 8, 2008, the Debtors have $7,604,195,000 in total assets
and $12,972,541,148 in total debts.
Bankruptcy Creditors' Service, Inc., publishes Tribune Bankruptcy
News. The newsletter tracks the chapter 11 proceeding undertaken
by Tribune Company and its various affiliates.
(http://bankrupt.com/newsstand/or 215/945-7000)
TRONOX INC: Amends Lawsuit Against Kerr-McGee
---------------------------------------------
To recall, in May 2009, Tronox Inc. filed a lawsuit against Kerr-
McGee Corp. and parent company Anadarko Petroleum Corp., alleging
in the suit that Kerr-McGee, its former parent, accumulated
"massive" environmental and retiree liabilities during 70 years in
business.
Tronox Incorporated, at the directive of the U.S. Bankruptcy
Court for the Southern District of New York in a March 31, 2010
memorandum of decision granting the Debtors leave to replead
certain counts of the Adversary Proceeding, filed an Amended
Complaint listing these causes of action:
-- breach of fiduciary duty,
-- civil conspiracy to breach a fiduciary duty, and
-- aiding and abetting a breach of fiduciary duty.
The Debtors assert that Kerr-McGee Corporation or "Old Kerr-
McGee" accumulated massive legacy liabilities but devised a two-
step scheme to avoid responsibility of payment.
The first step is isolating the Legacy Liabilities through
"Project Focus," which Old Kerr-McGee claimed was designed to
create a clear delineation between its oil and gas chemical
operations by creating a new parent company also called Kerr-
McGee Corporation, the Debtors assert. The Debtors argue that
"the real focus, however, was on segregating the Legacy
Liabilities from the oil and gas assets as the first step to
avoiding responsibility . . ." The final step is to completely
sever the Legacy Liabilities, she tells the Court.
The Legacy Liabilities are Kerr-McGee's massive actual and
contingent environmental, tort, retiree and other liabilities
during its 70-year existence.
David J. Zott, at Kirkland & Ellis LLP, in Chicago, Illinois,
prior to the filing of the Amended Complaint, told the Court that
the document includes allegations based on documents recently
produced by Defendants and designated by the Defendants as
"Confidential" and "Confidential Attorney's Eyes Only." Mr. Zott
said he believes the Amended Complaint can be publicly filed and
a protective order is not intended to prohibit the public
disclosure of the information contained therein.
Since the documents were only recently produced and the Debtors
has not had an opportunity to address this issue with Defendants,
the Debtors, out of an abundance of caution, sought leave to file
portions of the Amended Complaint under seal to ensure compliance
with the Court's prior protective order governing production of
confidential in the Adversary Proceeding.
Consistent with the terms of the Protective Order, Tronox will
work with the Defendants to try to obtain their agreement to
allow the public filing of the entire Amended Complaint as soon
as possible, Mr. Zott told the Court. He contended that certain
of the documents at issue were improperly designated as
"Confidential" or "Confidential Attorney's Eyes Only".
The Court granted the Debtors' Request. A full-text copy of the
unredacted Amended Complaint is available for free at:
http://bankrupt.com/misc/TrnxAndrkoAmndCmpln.pdf
Defendants Answer Amended Complaint
Anadarko/Kerr-McGee denied all counts alleged in the Amended
Complaint. In a separate filing, the Defendants ask the Court
dismiss counts of breach of fiduciary duty; civil conspiracy; and
aiding and abetting breach of fiduciary duty.
Lydia Protopapas, Esq., at Weil Gotshal & Manges LLP, in Houston,
Texas, points out that despite the Court's decision ruling on the
Defendant's first motion to dismiss the Adversary Proceeding,
which also set the deficiencies in the Debtors' allegations, the
Debtors are still unable to adequately plead their claims.
Ms. Protopapas contends that the allegations contained in the
Amended Complaint are merely repackaged causes of action for
breach of fiduciary duty, civil conspiracy to breach a fiduciary
duty, and aiding and abetting a breach of fiduciary duty.
"The Amended Complaint contains no new factual allegations to
enable Plaintiffs to overcome the bar of the statute of
limitations or to cure the deficiencies previously identified by
the Court. Consequently, each of the Amended Claims should once
again be dismissed -- this time with prejudice," Ms. Protopapas
asserts.
Equity Committee Seeks to Conduct Examination
The Official Committee of Equity Security Holders has filed a
motion pursuant to Rule 2004 of the Federal Rules of Bankruptcy
Procedure regarding issues in the Adversary Proceeding. However,
the Rule 2004 Motion is filed under seal.
About Tronox Inc.
Tronox Inc., aka New-Co Chemical, Inc., and 14 other affiliates
filed for Chapter 11 protection on January 13, 2009 (Bankr.
S.D.N.Y. Case No. 09-10156). The case is before Hon. Allan L.
Gropper. Richard M. Cieri, Esq., Jonathan S. Henes, Esq., and
Colin M. Adams, Esq., at Kirkland & Ellis LLP in New York,
represent the Debtors. The Debtors also tapped Togut, Segal &
Segal LLP as conflicts counsel; Rothschild Inc. as investment
bankers; Alvarez & Marsal North America LLC, as restructuring
consultants; and Kurtzman Carson Consultants serves as notice and
claims agent.
An official committee of unsecured creditors and an official
committee of equity security holders have been appointed in the
cases. The Creditors Committee has retained Paul, Weiss, Rifkind,
Wharton & Garrison LLP as counsel.
Until September 30, 2008, Tronox Inc. was publicly traded on the
New York Stock Exchange under the symbols TRX and TRX.B. Since
then, Tronox Inc. has traded on the Over the Counter Bulletin
Board under the symbols TROX.A.PK and TROX.B.PK. As of
December 31, 2008, Tronox Inc. had 19,107,367 outstanding shares
of class A common stock and 22,889,431 outstanding shares of class
B common stock.
Bankruptcy Creditors' Service, Inc., publishes Tronox Bankruptcy
News. The newsletter tracks the Chapter 11 proceeding undertaken
by Tronox Inc. and its 14 affiliates.
(http://bankrupt.com/newsstand/or 215/945-7000)
TRONOX INC: Court Denies RTIH Plea to Amend Complaint
-----------------------------------------------------
Judge Allan L. Gropper of the U.S. Bankruptcy Court for the
Southern District of New York has denied RTI Hamilton, Inc.'s
request to amend its Complaint against Tronox LLC because the
proposed amendments in RTIH's Amended Complaint do not state a
claim on which relief may be granted.
"The proposed amendments would be futile," Judge Gropper ruled.
In its original complaint, RTIH asserted that Tronox's failure to
disclose its financial condition breached the Supply Agreement.
The claim was dismissed on the ground that the Supply Agreement
did not contain a warranty or representation by Tronox as to its
financial condition and that the Supply Agreement specifically
contemplated the possibility of a bankruptcy filing by Tronox.
Reading the contract as a whole and giving effect to every
provision, RTIH could not plausibly assert a breach of the Supply
Agreement by virtue of Tronox's alleged failure to disclose its
financial condition, Judge Gropper said.
In its Amended Complaint, RTIH seeks to resuscitate its claim for
breach of contract by alleging that Tronox breached the part of
the Supply Agreement, which warrants and represents that "there
are no claims, demands, investigations, actions, suits or other
legal proceedings . . . pending or threatened against [Tronox]
that would impair the ability of [Tronox] to execute, deliver or
perform under this Agreement."
However, as was the case with respect to its alleged breach of
the Supply Agreement, RTIH's new contention can be disposed of
within the four corners of the Supply Agreement, Judge Gropper
said. He noted that as RTIH pointed out, any breach of the
Supply Agreement must be determined as of the time the parties
entered into the Agreements.
Thus, in order to sustain its claim, RTIH must show that on
March 25, 2008, (1) there was a claim, demand, investigation,
action or legal proceeding that (2) would impair the ability of
Tronox to execute, deliver or perform under the Supply Agreement.
While RTIH has listed a series of claims and actions that were
pending against Tronox at the time it executed the Supply
Agreement, it does not allege that any of the asserted claims,
demands, investigations or actions had any relation to the Tronox
Mississippi facility, Judge Gropper said.
About Tronox Inc.
Tronox Inc., aka New-Co Chemical, Inc., and 14 other affiliates
filed for Chapter 11 protection on January 13, 2009 (Bankr.
S.D.N.Y. Case No. 09-10156). The case is before Hon. Allan L.
Gropper. Richard M. Cieri, Esq., Jonathan S. Henes, Esq., and
Colin M. Adams, Esq., at Kirkland & Ellis LLP in New York,
represent the Debtors. The Debtors also tapped Togut, Segal &
Segal LLP as conflicts counsel; Rothschild Inc. as investment
bankers; Alvarez & Marsal North America LLC, as restructuring
consultants; and Kurtzman Carson Consultants serves as notice and
claims agent.
An official committee of unsecured creditors and an official
committee of equity security holders have been appointed in the
cases. The Creditors Committee has retained Paul, Weiss, Rifkind,
Wharton & Garrison LLP as counsel.
Until September 30, 2008, Tronox Inc. was publicly traded on the
New York Stock Exchange under the symbols TRX and TRX.B. Since
then, Tronox Inc. has traded on the Over the Counter Bulletin
Board under the symbols TROX.A.PK and TROX.B.PK. As of
December 31, 2008, Tronox Inc. had 19,107,367 outstanding shares
of class A common stock and 22,889,431 outstanding shares of class
B common stock.
Bankruptcy Creditors' Service, Inc., publishes Tronox Bankruptcy
News. The newsletter tracks the Chapter 11 proceeding undertaken
by Tronox Inc. and its 14 affiliates.
(http://bankrupt.com/newsstand/or 215/945-7000)
UAL CORP: Continental Pilots Want Equity in Combined Company
------------------------------------------------------------
The Wall Street Journal's Susan Carey reports that Jay Pierce,
head of the Continental Airlines pilots' group addressed
Continental's annual meeting Wednesday in Houston. She reports
that Mr. Pierce reiterated that Continental's 4,600 pilots believe
the merger could be successful, but only if the deal receives
labor support, and specifically the backing of the powerful pilot
groups. According to Mr. Pierce, Continental pilots want equity
in the combined company, a joint labor agreement with substantial
improvements and a fair method for integrating the aviators'
seniority.
Ms. Carey notes that one of the more difficult challenges the
airlines face is reaching new labor contracts with their unionized
employees. She explains all the current agreements now are open
for renegotiation, and workers hope to regain ground from
concessions they made after the September 11 terrorist attacks.
The Journal says numerous questions were raised about labor issues
at United's annual meeting, held in suburban Chicago. The
Association of Flight Attendants union, which represents United
cabin crew members, held a demonstration before the event.
Ms. Carey also reports that Mr. Pierce said pilot unions at United
and Continental, which are represented by different branches of
the Air Line Pilots Association, already have formed a joint
negotiating committee and are "going gangbusters" preparing for
contract talks with the airlines. Ms. Carey relates Mr. Pierce
said the two groups hope they can settle on a common labor pact by
the time the merger closes, although the merger isn't contingent
upon that.
Ms. Carey also says the United branch of ALPA, which represents
6,500 active pilots and 1,400 on furlough, has signaled guarded
support for the merger, partly because the pilots from Continental
command higher pay rates as a result of UAL's protracted
bankruptcy from 2002 to early 2006.
"But some of the other employee groups are represented by
different unions at the two airlines, and some of Continental's
employees aren't unionized at all," Ms. Carey writes. "This will
necessitate elections to determine which unions win the rights to
represent the combined groups, whether they're flight attendants,
customer-service agents or ramp workers. Then the winners will
need to negotiate joint contracts and tackle seniority
integration."
Pending Merger Deal
As reported by the Troubled Company Reporter on May 4, 2010,
Continental Airlines and UAL Corporation's United Airlines
announced a definitive merger agreement, creating the world's
biggest airline. The deal is an all-stock merger of equals.
Continental shareholders will receive 1.05 shares of United common
stock for each Continental common share they own. The acquisition
is valued at $3.17 billion, based on the April 30, 2010 closing
price, according to The New York Times. The merger is expected to
be completed before the end of 2010. United shareholders would
own approximately 55% of the equity of the combined company and
Continental shareholders would own approximately 45%, including
in-the-money convertible securities on an as-converted basis.
About Continental Airlines
Houston, Texas-based Continental Airlines (NYSE: CAL) --
http://www.continental.com/-- is the world's fifth largest
airline. Continental, together with Continental Express and
Continental Connection, has more than 2,700 daily departures
throughout the Americas, Europe and Asia, serving 132 domestic and
137 international destinations. Continental is a member of Star
Alliance, which overall offers more than 21,050 daily flights to
1,167 airports in 181 countries through its 27 member airlines.
With more than 40,000 employees, Continental has hubs serving New
York, Houston, Cleveland and Guam, and together with its regional
partners, carries approximately 63 million passengers per year.
At December 31, 2009, Continental had total assets of
$12.781 billion against total current liabilities of
$4.389 billion; long-term debt and capital leases of
$5.291 billion; deferred income taxes of $203 million; accrued
pension liability of $1.248 billion; accrued retiree medical
benefits of $216 million; and other liabilities of $844 million.
At December 31, 2009, the Company had accumulated deficit of
$442 million, accumulated other comprehensive loss of
$1.185 billion and stockholders' equity of $590 million. The
December 31 balance sheet showed strained liquidity: Continental
had total current assets of $4.373 billion against total current
liabilities of $4.389 billion.
* * *
As reported by the Troubled Company Reporter on May 5, 2010, Fitch
Ratings has affirmed the Issuer Default Rating for Continental
Airlines, Inc., at 'B-' and the senior unsecured rating at
'CC/RR6' following the announcement of the planned merger between
CAL and UAL Corp. The Rating Outlook for CAL is Stable.
The TCR on May 5, 2010, also said Standard & Poor's Ratings
Services placed its 'B' corporate credit rating on Continental
Airlines, and S&P's ratings on its secured and unsecured debt, on
CreditWatch with negative implications. S&P also placed its
ratings on Continental's enhanced equipment trust certificates on
CreditWatch with developing implications. Although S&P's recovery
ratings on selected Continental unsecured debt are unaffected by
the rating action, S&P will review them as well.
About UAL Corporation
Based in Chicago, Illinois, UAL Corporation (NASDAQ: UAUA) --
http://www.united.com/-- is the holding company for United
Airlines, Inc. United Airlines is the world's second largest air
carrier. The airline flies to Brazil, Korea and Germany.
The company filed for Chapter 11 protection on Dec. 9, 2002
(Bankr. N.D. Ill. Case No. 02-48191). James H.M. Sprayregen,
Esq., Marc Kieselstein, Esq., David R. Seligman, Esq., and Steven
R. Kotarba, Esq., at Kirkland & Ellis, represented the Debtors in
their restructuring efforts. Fruman Jacobson, Esq., at
Sonnenschein Nath & Rosenthal LLP represented the Official
Committee of Unsecured Creditors. Judge Eugene R. Wedoff
confirmed a reorganization plan for United on Jan. 20, 2006. The
Company emerged from bankruptcy on Feb. 1, 2006.
Reorganized UAL Corp. carries a 'Caa1' probability of default
rating from Moody's, 'B-' long term foreign issuer credit rating
from Standard & Poor's, and 'CCC' long term issuer default rating
from Fitch.
UAL CORP: Hires Bain & Co. to Advise on Continental Merger
----------------------------------------------------------
According to The Wall Street Journal's Susan Carey, UAL Corp.'s
United Airlines and Continental Airlines Inc., preparing for a
deal closing late this year, have embarked on integration
planning, forming a steering committee of executives to oversee it
and establishing about 30 teams of employees to delve into the
many details of aligning functions ranging from maintenance to
sales to information technology.
According to Ms. Carey, UAL Corp. chief executive Glenn Tilton
disclosed Thursday that United Airlines and Continental Airlines
Inc. have hired consultants from Bain & Co. to help with that
process. Bain assisted Delta Air Lines Inc. and Northwest
Airlines Corp. in their 2008 merger. Bain declined to comment,
the Journal relates.
Ms. Carey also reports Mr. Tilton said the merger won't be a
panacea, and the combined carrier must continue to innovate and
evolve if it hopes to become financially sustainable. Ms. Carey
relates that Mr. Tilton, speaking at what could be the last annual
meeting for United in its current form, also said the entire
airline industry must change dramatically for the merged carrier
to be able to produce profit margins that businesses in other
sectors routinely earn.
Pending Merger Deal
As reported by the Troubled Company Reporter on May 4, 2010,
Continental Airlines and UAL Corporation's United Airlines
announced a definitive merger agreement, creating the world's
biggest airline. The deal is an all-stock merger of equals.
Continental shareholders will receive 1.05 shares of United common
stock for each Continental common share they own. The acquisition
is valued at $3.17 billion, based on the April 30, 2010 closing
price, according to The New York Times. The merger is expected to
be completed before the end of 2010. United shareholders would
own approximately 55% of the equity of the combined company and
Continental shareholders would own approximately 45%, including
in-the-money convertible securities on an as-converted basis.
About Continental Airlines
Houston, Texas-based Continental Airlines (NYSE: CAL) --
http://www.continental.com/-- is the world's fifth largest
airline. Continental, together with Continental Express and
Continental Connection, has more than 2,700 daily departures
throughout the Americas, Europe and Asia, serving 132 domestic and
137 international destinations. Continental is a member of Star
Alliance, which overall offers more than 21,050 daily flights to
1,167 airports in 181 countries through its 27 member airlines.
With more than 40,000 employees, Continental has hubs serving New
York, Houston, Cleveland and Guam, and together with its regional
partners, carries approximately 63 million passengers per year.
At December 31, 2009, Continental had total assets of
$12.781 billion against total current liabilities of
$4.389 billion; long-term debt and capital leases of
$5.291 billion; deferred income taxes of $203 million; accrued
pension liability of $1.248 billion; accrued retiree medical
benefits of $216 million; and other liabilities of $844 million.
At December 31, 2009, the Company had accumulated deficit of
$442 million, accumulated other comprehensive loss of
$1.185 billion and stockholders' equity of $590 million. The
December 31 balance sheet showed strained liquidity: Continental
had total current assets of $4.373 billion against total current
liabilities of $4.389 billion.
* * *
As reported by the Troubled Company Reporter on May 5, 2010, Fitch
Ratings has affirmed the Issuer Default Rating for Continental
Airlines, Inc., at 'B-' and the senior unsecured rating at
'CC/RR6' following the announcement of the planned merger between
CAL and UAL Corp. The Rating Outlook for CAL is Stable.
The TCR on May 5, 2010, also said Standard & Poor's Ratings
Services placed its 'B' corporate credit rating on Continental
Airlines, and S&P's ratings on its secured and unsecured debt, on
CreditWatch with negative implications. S&P also placed its
ratings on Continental's enhanced equipment trust certificates on
CreditWatch with developing implications. Although S&P's recovery
ratings on selected Continental unsecured debt are unaffected by
the rating action, S&P will review them as well.
About UAL Corporation
Based in Chicago, Illinois, UAL Corporation (NASDAQ: UAUA) --
http://www.united.com/-- is the holding company for United
Airlines, Inc. United Airlines is the world's second largest air
carrier. The airline flies to Brazil, Korea and Germany.
The company filed for Chapter 11 protection on Dec. 9, 2002
(Bankr. N.D. Ill. Case No. 02-48191). James H.M. Sprayregen,
Esq., Marc Kieselstein, Esq., David R. Seligman, Esq., and Steven
R. Kotarba, Esq., at Kirkland & Ellis, represented the Debtors in
their restructuring efforts. Fruman Jacobson, Esq., at
Sonnenschein Nath & Rosenthal LLP represented the Official
Committee of Unsecured Creditors. Judge Eugene R. Wedoff
confirmed a reorganization plan for United on Jan. 20, 2006. The
Company emerged from bankruptcy on Feb. 1, 2006.
Reorganized UAL Corp. carries a 'Caa1' probability of default
rating from Moody's, 'B-' long term foreign issuer credit rating
from Standard & Poor's, and 'CCC' long term issuer default rating
from Fitch.
UNIGENE LABORATORIES: Names Ashleigh Palmer as New CEO
------------------------------------------------------
Unigene Laboratories Inc. appointed Ashleigh Palmer as President
and Chief Executive Officer of the Company, replacing Dr. Warren
Levy. Mr. Palmer also has been named a member of Unigene's Board
of Directors. He brings to Unigene extensive healthcare
operational experience, as well as a successful track record in
building out R&D and commercial capabilities. Mr. Palmer's
appointment is effective immediately.
"We are delighted to welcome Ashleigh to the Unigene team. His
areas of expertise and understanding of Big Pharma, as well as his
appreciation for our oral delivery platform and peptide
manufacturing capabilities, will help ensure Unigene maximizes its
core assets and existing partnerships," commented Richard Levy,
Chairman of Unigene's Board and Managing Principal at Victory Park
Capital. "We soon will complement Ashleigh's leadership with the
addition of a seasoned business development professional, further
expanding the talented team at Unigene."
Mr. Palmer commented, "I am thrilled to be joining Unigene, which
has a well-established presence in the growing peptide
therapeutics space. Compelling assets include a commercialized
product, Fortical, as well as a broad product R&D pipeline and
advanced clinical-stage partnerships. Importantly, Unigene has
demonstrated it is the partner of choice for GMP recombinant
peptide manufacturing, a distinctive competence that, when
combined with its validated delivery platform, enables the Company
to offer a competitive profile that is truly unique in this
sector."
Prior to joining Unigene, Mr. Palmer served as CEO of Critical
Biologics Corporation, a critical care company where he remains
a Director, and headed the strategic advisory firm, Creative
BioVentures Corporation. Previously, Mr. Palmer was Vice
President of Business Development at Ohmeda, Inc. During his
tenure, Mr. Palmer played a key role in the $1.2 billion sale of
Ohmeda to a consortium including Baxter and Becton, Dickinson by
spinning out Ohmeda's nitric oxide assets to found INO
Therapeutics, Inc. Under his leadership as President and CEO, INO
commercialized the world's first selective pulmonary vasodilator,
INOmax, establishing a greater than $100 million revenue stream
within the first 24 months of launch. Subsequently, INO was sold
to critical care company Ikaria in 2007 for $670 million.
Earlier in his career, Mr. Palmer held positions of increasing
responsibility at Seton Healthcare Group and, prior to this,
Reckitt and Colman PLC. He received his MBA degree from the
University of Bradford, England, and his BSc degree from the
University of Manchester, England.
About Unigene
Unigene Laboratories, Inc. OTCBB: UGNE) -- http://www.unigene.com/
-- is a biopharmaceutical company focusing on the oral and nasal
delivery of large-market peptide drugs.
Going Concern Doubt
Grant Thornton LLP of New York expressed substantial doubt against
Unigene Laboratories Inc.'s ability as a going concern. The firm
noted that the Company has incurred a net loss of $13,400,000
during the year ended December 31, 2009 and has an accumulated
deficit of approximately $143,000,000 as of December 31, 2009. As
of that date, the Company's current liabilities exceeded its
current assets by $1,251,000 and its total liabilities exceeded
total assets by $30,442,000.
The Company's balance sheet for December 31, 2009, showed
$23,954,941 and $54,396,602 total liabilities for a $30,441,661
total stockholders' deficit.
Failed Bank from June 11, 2010
UNITED AIR LINES: Bank Debt Trades at 13% Off in Secondary Market
-----------------------------------------------------------------
Participations in a syndicated loan under which United Air Lines,
Inc., is a borrower traded in the secondary market at 86.71 cents-
on-the-dollar during the week ended Friday, June 11, 2010,
according to data compiled by Loan Pricing Corp. and reported in
The Wall Street Journal. This represents a drop of 1.22
percentage points from the previous week, The Journal relates.
The Company pays 200 basis points above LIBOR to borrow under the
facility. The bank loan matures on Feb. 13, 2013, and carries
Moody's B3 rating and Standard & Poor's B+ rating. The debt is
one of the biggest gainers and losers among 185 widely quoted
syndicated loans with five or more bids in secondary trading for
the week ended Friday.
Based in Chicago, Illinois, UAL Corporation (NASDAQ: UAUA) --
http://www.united.com/-- is the holding company for United Air
Lines, Inc. United Airlines is the world's second largest air
carrier. The airline flies to Brazil, Korea and Germany.
The company filed for Chapter 11 protection on Dec. 9, 2002
(Bankr. N.D. Ill. Case No. 02-48191). James H.M. Sprayregen,
Esq., Marc Kieselstein, Esq., David R. Seligman, Esq., and Steven
R. Kotarba, Esq., at Kirkland & Ellis, represented the Debtors in
their restructuring efforts. Fruman Jacobson, Esq., at
Sonnenschein Nath & Rosenthal LLP represented the Official
Committee of Unsecured Creditors before the Committee was
dissolved when the Debtors emerged from bankruptcy.
Judge Eugene R. Wedoff confirmed the Debtors' Second Amended Plan
on Jan. 20, 2006. The company emerged from bankruptcy protection
on Feb. 1, 2006. (United Airlines Bankruptcy News; Bankruptcy
Creditors' Service Inc., http://bankrupt.com/newsstand/or
215/945-7000)
UNIVAR NV: Bank Debt Trades at 5% Off in Secondary Market
---------------------------------------------------------
Participations in a syndicated loan under which Univar N.V. is a
borrower traded in the secondary market at 94.60 cents-on-the-
dollar during the week ended Friday, June 11, 2010, according to
data compiled by Loan Pricing Corp. and reported in The Wall
Street Journal. This represents a drop of 0.95 percentage points
from the previous week, The Journal relates. The Company pays 300
basis points above LIBOR to borrow under the facility. The bank
loan matures on Oct. 10, 2014, and is not rated by Moody's and
Standard & Poor's. The debt is one of the biggest gainers and
losers among 185 widely quoted syndicated loans with five or more
bids in secondary trading for the week ended Friday.
Univar N.V. -- http://www.univarcorp.com/-- is one of the largest
distributors of industrial chemicals and providers of related
services to a diverse set of end markets in the US, Canada and
Europe. In April 2007, the company purchased ChemCentral
Corporation, the fourth largest chemicals distributor in the US,
for a purchase price of about $650 million, which resulted in the
combined entities becoming the largest chemicals distributor in
North America. The company had pro forma revenues (including
ChemCentral Corporation) of $8.3 billion for the LTM ended
June 30, 2007.
UNIVAR NV: Bank Debt Trades at 5% Off in Secondary Market
---------------------------------------------------------
Participations in a syndicated loan under which Univar N.V. is a
borrower traded in the secondary market at 94.60 cents-on-the-
dollar during the week ended Friday, June 11, 2010, according to
data compiled by Loan Pricing Corp. and reported in The Wall
Street Journal. This represents a drop of 0.95 percentage points
from the previous week, The Journal relates. The Company pays 300
basis points above LIBOR to borrow under the facility. The bank
loan matures on Oct. 11, 2014, and is not rated by Moody's and
Standard & Poor's. The debt is one of the biggest gainers and
losers among 185 widely quoted syndicated loans with five or more
bids in secondary trading for the week ended Friday.
Univar N.V. -- http://www.univarcorp.com/-- is one of the largest
distributors of industrial chemicals and providers of related
services to a diverse set of end markets in the US, Canada and
Europe. In April 2007, the company purchased ChemCentral
Corporation, the fourth largest chemicals distributor in the US,
for a purchase price of about $650 million, which resulted in the
combined entities becoming the largest chemicals distributor in
North America. The company had pro forma revenues (including
ChemCentral Corporation) of $8.3 billion for the LTM ended
June 30, 2007.
US AIRWAYS: Gets More Time With Delta to Consider Slot Swap
-----------------------------------------------------------
Delta Air Lines and US Airways sought and obtained approval from
the Federal Aviation Administration to extend the deadline for
them to pursue a proposed swap of landing slots at New York
LaGuardia and Washington National until July 2, 2010, reports USA
Today.
According to the report, the airlines have asked for additional
time for them to have the opportunity to review all of the
possible options.
Originally, the airlines had proposed that Delta would give most
of its Washington National slots to US Airways in exchange for
most of the latter's slots at LaGuardia, USA Today related in the
report. US Airways also stood to gain access to some
international routes from Delta. However, the regulators said
they would not approve the deal unless the airlines gave up slots
to competitors.
According to USA Today, Delta and US Airways came back with a
counter-proposal that would have given some slots to low-cost
rivals JetBlue, AirTran, Spirit Airlines and WestJet. However,
regulators balked at the counter-proposal, sticking to their
original requirement that the airlines give up additional slots
that would be distributed in a blind auction, the report added.
About US Airways
US Airways -- http://www.usairways.com/-- along with US Airways
Shuttle and US Airways Express, operates more than 3,000 flights
per day and serves more than 190 communities in the U.S., Canada,
Mexico, Europe, the Middle East, the Caribbean, Central and South
America.
Under a Chapter 11 plan declared effective on March 31, 2003,
USAir emerged from bankruptcy with the Retirement Systems of
Alabama taking a 40% equity stake in the deleveraged carrier in
exchange for $240 million infusion of new capital.
US Airways and its subsidiaries filed another Chapter 11 petition
on September 12, 2004 (Bankr. E.D. Va. Case No. 04-13820). Brian
P. Leitch, Esq., Daniel M. Lewis, Esq., and Michael J. Canning,
Esq., at Arnold & Porter LLP, and Lawrence E. Rifken, Esq., and
Douglas M. Foley, Esq., at McGuireWoods LLP, represented the
Debtors in their restructuring efforts. The USAir II bankruptcy
plan became effective on September 27, 2005. The Debtors
completed their merger with America West on the same date. (US
Airways Bankruptcy News; Bankruptcy Creditors' Service Inc.,
http://bankrupt.com/newsstand/or 215/945-7000).
* * *
As of December 31, 2009, US Airways had total assets of
$7,454,000,000, including $2,331,000,000 in total current assets,
against total current liabilities of $2,789,000,000 and total
noncurrent liabilities and deferred credits of $5,020,000,000,
resulting in $355,000,000 stockholders' deficit.
US Airways Group carries Moody's "Caa1" Long-Term rating, LT Corp.
family rating and probability of default rating. Outlook is
negative.
US Airways Group carries Standard & Poor's "B-" LT Foreign Issuer
Credit rating and LT Local Issuer credit rating. Outlook is also
negative.
US Airways Group carries Fitch's "CCC" LT Issuer default rating
and "C" Senior unsecured debt rating. Outlook is also negative.
US AIRWAYS: Won't Provide Home Loss Relocation Benefits
-------------------------------------------------------
In a schedule 14A filing with the U.S. Securities and Exchange
Commission, US Airways Group, Inc., relates that on June 1, 2010,
the Compensation and Human Resources Committee adopted a policy
which provides that the Company will not enter into any
agreements with any current or future named executive officers
that provide home loss buyout relocation benefits.
About US Airways
US Airways -- http://www.usairways.com/-- along with US Airways
Shuttle and US Airways Express, operates more than 3,000 flights
per day and serves more than 190 communities in the U.S., Canada,
Mexico, Europe, the Middle East, the Caribbean, Central and South
America.
Under a Chapter 11 plan declared effective on March 31, 2003,
USAir emerged from bankruptcy with the Retirement Systems of
Alabama taking a 40% equity stake in the deleveraged carrier in
exchange for $240 million infusion of new capital.
US Airways and its subsidiaries filed another Chapter 11 petition
on September 12, 2004 (Bankr. E.D. Va. Case No. 04-13820). Brian
P. Leitch, Esq., Daniel M. Lewis, Esq., and Michael J. Canning,
Esq., at Arnold & Porter LLP, and Lawrence E. Rifken, Esq., and
Douglas M. Foley, Esq., at McGuireWoods LLP, represented the
Debtors in their restructuring efforts. The USAir II bankruptcy
plan became effective on September 27, 2005. The Debtors
completed their merger with America West on the same date. (US
Airways Bankruptcy News; Bankruptcy Creditors' Service Inc.,
http://bankrupt.com/newsstand/or 215/945-7000).
* * *
As of December 31, 2009, US Airways had total assets of
$7,454,000,000, including $2,331,000,000 in total current assets,
against total current liabilities of $2,789,000,000 and total
noncurrent liabilities and deferred credits of $5,020,000,000,
resulting in $355,000,000 stockholders' deficit.
US Airways Group carries Moody's "Caa1" Long-Term rating, LT Corp.
family rating and probability of default rating. Outlook is
negative.
US Airways Group carries Standard & Poor's "B-" LT Foreign Issuer
Credit rating and LT Local Issuer credit rating. Outlook is also
negative.
US Airways Group carries Fitch's "CCC" LT Issuer default rating
and "C" Senior unsecured debt rating. Outlook is also negative.
USPF HOLDINGS: S&P Withdraws 'BB+' Rating on $300 Mil. Facility
---------------------------------------------------------------
Standard & Poor's Ratings Services said it withdrew its 'BB+'
rating on USPF Holdings LLC's $300 million senior secured credit
facility. The facility includes a $288 million term loan and a
$12 million synthetic letter of credit. S&P also withdrew the '1'
recovery rating.
The rating action reflects the completed sale of all but one of
USPF Holdings' equity interests to Great Point Power Holdings.
USPF used the net proceeds to repay the remaining $127.7 million
outstanding on the term loan facility, in accordance with the
credit agreement. On Dec. 4, 2009, Energy Investor Funds had
entered into a contract to sell to Great Point Power its equity
interest in a portfolio of four power plants ((Borger Energy
Associates L.P. (BB-/Negative), Crockett Cogeneration (BBB-
/Negative), Hamakua, and Mustang) totaling 695 megawatts of net
generation and an interest in Neptune LLC.
USPF Holding is a wholly owned subsidiary of United States Power
Fund L.P., which is managed by EIF, a private equity fund
management company focused on the U.S. power industry.
Ratings List
Ratings Withdrawn
USPF Holdings LLC
To From
-- ----
Senior secured NR BB+/Positive
Recovery rating NR 1
VICTOR SANCHEZ: Case Summary & 20 Largest Unsecured Creditors
-------------------------------------------------------------
Joint Debtors: Victor M. Sanchez
Maria F. Sanchez
dba Maria Sanchez Real Estate Agent
D.A.V. Gardening Services
Jimmy's Professional Cleaners
2979 Patt Avenue
San Jose, CA 95133
Bankruptcy Case No.: 10-56000
Chapter 11 Petition Date: June 9, 2010
Court: U.S. Bankruptcy Court
Northern District of California (San Jose)
Judge: Arthur S. Weissbrodt
Debtor's Counsel: Michael H. Luu, Esq.
Law Offices of Michael H. Luu
1340 Tully Road #309
San Jose, CA 95122
Tel: (408) 425-6221
E-mail: mikeluu63@yahoo.com
Estimated Assets: $500,001 to $1,000,000
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/canb10-56000.pdf
The petition was signed by the Joint Debtors.
VISTEON CORP: Trade Claimants Step Up Fight Against Reorganization
------------------------------------------------------------------
American Bankruptcy Institute reports that holders of trade claims
of Visteon Corp. are stepping up their fight against the auto
parts maker's reorganization, which they said would pay similar
creditors in full while giving them 50 cents on the dollar.
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: Claim Transfers for May Aggregate $12.1 Million
-------------------------------------------------------------
About 17 creditors notified the Court in May 2010 that they
intend to transfer their claims against Visteon Corp. and its
units to various parties.
The Creditors and their corresponding claims are:
Claim
Transferor Transferee Amount
---------- ---------- ----------
Charter Township of Van
Buren, Michigan Fulcrum Credit Partners $9,831,427
BIT Holdings Thirty-Four
Inc Liquidity Solutions 2,119,417
The National Union Fire
Company of Pittsburg PA Liquidity Solutions, Inc. 32,479
Transnav Technologies Creditor Liquidity, LP 25,824
HI Lex Mexicana SA De CV Liquidity Solutions, Inc. 25,029
Taiyo Technology Creditor Liquidity, LP 21,998
HI Lex Liquidity Solutions, Inc. 18,771
Cermak Horej Myslil a spol Creditor Liquidity, LP 17,595
1Zu1 Prototype GmbH & Co. Jefferies Leveraged
Credit Products, LLC 12,393
Unitek Sealing Solutions Inc Creditor Liquidity, LP 11,300
Menasha Packaging Creditor Liquidity, LP 8,548
Michigan Rubber Products Creditor Liquidity, LP 5,482
Poly Fex Products LLC US Debt Recovery V LP 3,700
A2Mac1 Creditor Liquidity, LP 3,125
Smartpros Legal & Ethics Ltd U.S. Debt Recovery V, LP 2,750
Engineering Technology
Associates I U.S. Debt Recovery IV, LLC 2,240
Michigan Rubber Products Creditor Liquidity, LP 306
Michigan Rubber Products Creditor Liquidity, LP 238
1Zu1 Prototype subsequently withdrew its notice of claim
transfer.
The amount of the claims that changed hands in May 2010 aggregate
more than $12,000,000.
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: D. Kempner Discloses 8.86% Equity Stake
-----------------------------------------------------
In an amended 13D filing with the U.S. Securities and Exchange
Commission dated May 27, 2010, the Davidson Kempner Filing
Persons, the Brigade Filing Persons, and Plainfield Filing
Persons disclose aggregate ownership of 16,957,500 shares of
Visteon common stock.
The Parties' shares constitute 13.01% of the 130,320,880 shares
outstanding of Visteon as of April 30, 2010.
The Filing Persons are:
Shares
Beneficially Equity
Entity Owned Stake
------ ----------- ------
Davidson Kempner Partners 577,500 0.44%
Davidson Kempner Institutional Partners,LP 1,212,750 0.93%
M.H. Davidson & Co. 103,945 0.08%
Davidson Kempner International, Ltd. 1,351,350 1.04%
Davidson Kempner Distressed Opportunities
Fund LP 2,644,952 2.03%
Davidson Kempner Distressed Opportunities
International Ltd. 5,659,503 4.34%
MHD Management Co. 577,500 0.44%
MHD Management Co. GP, LLC 577,500 0.44%
M.H. Davidson & Co. GP, LLC 103,945 0.08%
Davidson Kempner Advisers Inc. 1,212,750 0.93%
Davidson Kempner Int'l Advisors, LLC 1,351,350 1.04%
DK Group LLC 2,644,952 2.03%
DK Management Partners LP 5,659,503 4.34%
DK Stillwater GP LLC 5,659,503 4.34%
Thomas L. Kempner, Jr. 11,550,000 8.86%
Stephen M. Dowicz 11,550,000 8.86%
Scott E. Davidson 11,550,000 8.86%
Timothy I. Levart 11,550,000 8.86%
Robert J. Brivio, Jr. 11,550,000 8.86%
Eric P. Epstein 11,550,000 8.86%
Anthony A. Yoseloff 11,550,000 8.86%
Avram Z. Friedman 11,550,000 8.86%
Conor Bastable 11,550,000 8.86%
Brigade Capital Management, LLC 3,350,000 2.57%
Brigade Leveraged Capital Structures Fund 3,350,000 2.57%
Donald E. Morgan, III 3,350,000 2.57%
Plainfield Asset Management LLC 2,057,500 1.58%
Plainfield OC Master Fund Limited 225,625 0.17%
Plainfield Liquid Strategies Master Fund 45,125 0.03%
Plainfield Special Situations Master
Fund II Limited 1,786,750 1.37%
Max Holmes 2,057,500 1.58%
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: Wants E&Y Work to Include Valuation Services
----------------------------------------------------------
Visteon corp. seek the Court's authority to further expand the
scope of employment of Ernst & Young LLP to provide certain
valuation services nunc pro tunc to April 1, 2010.
The Debtors have requested that Ernst & Young provide valuation
services in connection with the acquisition by one of their non-
debtor affiliates of Visteon Automotive (India) Private Limited,
Inc. Pursuant to the Acquisition, a non-debtor affiliate
purchased approximately 49% of the remaining common stock of
Visteon Automotive (India) for approximately $1.3 million.
The Debtors expect Ernst & Young to provide these valuation
services:
* General Valuation Services:
-- conducting interviews with Visteon Automotive (India)'s
senior management;
-- considering applicable economic, industry, and
competitive environments, including relevant historical
and future estimated trends;
-- applying various valuation techniques using, where
appropriate, financial data based on a market participant
perspective; and
-- preparing a letter report summarizing the methodologies
employed in Ernst & Young's analysis, the assumptions on
which that analysis was based, and calculations of fair
value;
* Real Property Valuation Services:
-- performing valuation services in connection with Visteon
Automotive (India)'s real property, including valuation
of land, buildings, and building environments;
-- gathering and assessing information from interviews with
management and operations personnel at Visteon Automotive
(India), along with electronic fixed asset listings;
-- analyzing the values of owned land, buildings, and site
improvements using sales comparison and cost approaches;
-- rationalizing the building and site improvement value
conclusions; and
-- determining economic support for real property asset
values and adjusting values as required.
* Personal Property Valuation Services:
-- performing valuation services in connection with Visteon
Automotive (India)'s personal property, including
machinery and equipment, tools and molds, warehouse
equipment, vehicles, leasehold improvements, and other
personal property assets;
-- performing valuations of certain personal property assets
on an in-use and liquidation basis;
-- gathering and assessing information from interviews with
management and operations personnel at the subject
properties along with electronic fixed asset listings;
-- calculating the reproduction costs for personal property
assets through application of asset-class-specific
indices and normal-useful-life analysis;
-- researching and estimating current replacement costs for
major asset systems and categories of assets;
-- comparing current replacement costs to the estimated
production cost calculation to identify more efficient or
cost-effective technologies, or layering of new
technology costs in the asset ledgers, as applicable;
-- considering applicable functional and technological
differences between the subject assets and replacement
systems, including excess operating costs and
underutilization; and
-- conducting a liquidation analysis of Visteon Automotive
(India)'s assets, including reviewing the market for
recent sales evidence of similar assets within the region
to develop liquidation values of personal property asset;
* Intangible Asset Valuation Services:
-- performing valuation services in connection with Visteon
Automotive (India)'s intangible assets, including
customer relationships, loss contracts, and workforce;
-- identifying other valuable intangible assets; and
-- collecting data and conducting interviews with Visteon
Automotive (India)'s management to obtain the information
and assumptions needed to identify all relevant
intangible assets, including leveraging information and
assumptions from previous valuation analyses.
* Debt Valuation Services
-- performing valuation services on Visteon Automotive
(India)'s debt, including considering Visteon Automotive
(India)'s credit worthiness;
-- in the absence of a readily obtainable credit rating,
performing analyses of the historical and projected
financial statements of Visteon Automotive (India) for
the purposes of estimating credit rating;
-- conducting interviews with Visteon Automotive (India)'s
management concerning the details of certain debt;
-- considering publicly available prices and yields on
similar debt; and
-- applying a discounted cash flow model on the interest and
principle of certain debt to determine its fair value.
The Debtors have agreed to the modifications of Ernst & Young's
terms of compensation structure.
The Debtors relate that the effect of the amendments is to
clarify that they are responsible for the taxes resulting from
Ernst & Young's services. The Amendments remove June 30, 2010,
as the outside date for the applicability of Ernst & Young's 2010
billing rates. The 3% lockstep annual rate increase, which is
set to occur on and after January 1, 2011, has also been removed
so that the parties may negotiate appropriate rate increases
contemporaneously with work performed.
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)
VOUGHT AIRCRAFT: Earns $26.8 Million in Q1 2010
-----------------------------------------------
Vought Aircraft Industries, Inc., filed its quarterly report on
Form 10-Q, reporting net income of $26.8 million on $470.5 million
of revenue for the three months ended March 28, 2010, compared
with net income of $17.9 million on $390.3 million of revenue for
the same period ended March 29, 2009.
Revenue and net income increased primarily due to increased sales
on the 747-8 program.
"We are pleased with Vought's first quarter results, which reflect
increasing sales in the 747-8 program," said Vought President and
Chief Executive Officer Elmer Doty. "Our results also indicate
that we are weathering the economic climate well by managing costs
and focusing on operating efficiencies in our plants." Mr. Doty
added, "We continue to work toward closing our Triumph Group
transaction and are eager to become part of a combined company
where our workforce can continue to thrive and address the
opportunities and challenges of today's aerospace market."
Adjusted EBITDA, as defined in the Company's senior credit
agreement, was $60.7 million for the first quarter of 2010, a
decrease of $7.5 million compared to last year. This decrease
resulted from lower margins on military programs in 2010 partially
offset by increased deliveries on the 747-8 program.
Vought had Free Cash Flow of $33.3 million for the first quarter
of 2010 compared with negative $81.3 million in 2009. The
improvement primarily resulted from the timing of customer
payments for the 747-8 program and milestone payments for the C-17
program.
The Company's balance sheet as of March 28, 2010, showed
$1.514 billion in assets and $1.980 billion of liabilities, for a
stockholders' deficit of $466 million.
As reported in the Troubled Company Reporter on April 1, 2010,
Ernst & Young LLP, in Dallas, expressed substantial doubt about
the Company's ability to continue as a going concern after
auditing the Company's financial statements for the year ended
December 31, 2009. The independent auditors noted that under the
terms of its senior credit facility, the Company is required to
prepay or refinance any amounts outstanding on its $270 million
Senior Notes by the last business day of 2010 or must repay the
aggregate amount of loans outstanding at that time.
On March 23, 2010, the Company entered into a merger agreement
with Triumph Group, Inc. pursuant to which it will be acquired by
Triumph. It is anticipated that in connection with that
transaction all of the Company's currently outstanding material
indebtedness will be repaid in full. The consummation of the
acquisition is subject to, among other things, approval of
Triumph's stockholders and other customary closing conditions,
which may not be satisfied. In the event that the anticipated
acquisition is not completed and such indebtedness remains
outstanding, the Company plans to refinance its senior credit
facility or the Senior Notes prior to the last business day of
2010.
"There are no assurances that we will be able to refinance on
commercially reasonable terms or at all. This creates an
uncertainty about our ability to continue as a going concern."
A full-text copy of the quarterly report is available for free at:
http://researcharchives.com/t/s?64ab
A full-text copy of the press release is available for free at:
http://researcharchives.com/t/s?64ac
Headquartered in Dallas, Vought Aircraft Industries, Inc.
-- http://www.voughtaircraft.com/-- is one of the world's largest
independent suppliers of aerostructures. The Company designs and
manufactures major airframe structures such as wings, fuselage
subassemblies, empennages, nacelles and other components for prime
manufacturers of aircraft. Vought has about 6,000 employees in
eight U.S. locations. On March 23, 2010, the Company entered
into a merger agreement with Triumph Group, Inc. pursuant to which
the Company will be acquired by Triumph. Triumph is a public
company listed on the NYSE under the ticker symbol "TGI," and is a
designer, engineer, manufacturer, repairer and over hauler of
aircraft components and accessories.
WASHINGTON FIRST: Closed; East West Bank Assumes All Deposits
-------------------------------------------------------------
Washington First International Bank of Seattle, Wash., was closed
on June 11, 2010, by the Washington Department of Financial
Institutions, which appointed the Federal Deposit Insurance
Corporation as receiver. To protect the depositors, the FDIC
entered into a purchase and assumption agreement with East West
Bank of Pasadena, Calif., to assume all of the deposits of
Washington First International Bank.
The four branches of Washington First International Bank will
reopen during normal business hours as branches of East West Bank.
Depositors of Washington First International Bank will
automatically become depositors of East West Bank. Deposits will
continue to be insured by the FDIC, so there is no need for
customers to change their banking relationship to retain their
deposit insurance coverage. Customers of Washington First
International Bank should continue to use their existing branch
until they receive notice from East West Bank that it has
completed systems changes to allow other East West Bank branches
to process their accounts as well.
As of March 31, 2010, Washington First International Bank had
around $520.9 million in total assets and $441.4 million in total
deposits. East West Bank will pay the FDIC a premium of 0.5
percent to assume all of the deposits of Washington First
International Bank. In addition to assuming all of the deposits
of the failed bank, East West Bank agreed to purchase around
$501.0 million of the failed bank's assets. The FDIC will retain
the remaining assets for later disposition.
The FDIC and East West Bank entered into a loss-share transaction
on $418.8 million of Washington First International Bank's assets.
East West Bank will share in the losses on the asset pools covered
under the loss-share agreement. The loss-share transaction is
projected to maximize returns on the assets covered by keeping
them in the private sector. The transaction also is expected to
minimize disruptions for loan customers. For more information on
loss share, please visit:
http://www.fdic.gov/bank/individual/failed/lossshare/index.html
Customers who have questions about today's transaction can call
the FDIC toll-free at 1-800-405-7869. Interested parties also can
visit the FDIC's Web site at:
http://www.fdic.gov/bank/individual/failed/washfirstintl.html
The FDIC estimates that the cost to the Deposit Insurance Fund
will be $158.4 million. East West Bank's acquisition of all the
deposits was the "least costly" resolution for the FDIC's DIF
compared to all alternatives. Washington First International Bank
is the 82nd FDIC-insured institution to fail in the nation this
year, and the seventh in Washington. The last FDIC-insured
institution closed in the state was Frontier Bank, Everett, on
April 30, 2010.
WESTCLIFF MEDICAL: Wants June 18 Hearing on Sale of Assets
----------------------------------------------------------
Westcliff Medical Laboratories, Inc., and Biolabs, Inc., have
asked the U.S. Bankruptcy Court for the Central District of
California to set a hearing on the Debtors' request for
authorization to sell substantially all of the Debtors' assets,
free and clear of all liens, claims and interests. The Debtors
want the hearing set for June 18, 2010.
The Debtors have been engaged in an active sale process since
early 2009. To assist the Debtors with this sale process, the
Debtors engaged MTS Health Partners, LP (MTS) in October 2009 as a
financial advisor to assist the Debtors with their sale process.
After having engaged in substantial due diligence and negotiations
with a number of different prospective buyers over the past many
months, MTS and the Debtors collectively concluded that Wave
Newco, Inc., a wholly-owned subsidiary of Laboratory
Corporation of America (LabCorp), was the optimal buyer of the
Debtors' assets for three primary reasons. LabCorp, which is in
the same business as Westcliff but is a much larger company,
expressed the greatest interest in purchasing the Debtors' assets.
LabCorp agreed to pay to the Debtors $57.5 million for the
Purchased Assets, while leaving with the Debtors, among other
things, all of the Debtors' accounts receivable (which the Debtors
estimate will result in an additional net recovery of
approximately $8,000,000 for the Debtors' estates) and all of the
Debtors' cash.
To make sure that the purchase price being paid by LabCorp is the
highest price possible for the Purchased Assets, the Debtors
conducted an auction sale of the Purchased Assets following the
Court's approval of overbid procedures. No party offered to pay
more for the Purchased Assets than LabCorp. The Debtors therefore
requested and urged the Court to approve the Debtors' sale of the
Purchased Assets to LabCorp on a very expedited basis because of
the severe risk of a deterioration of Westcliff's business
resulting from the Debtors' bankruptcy filings. The Debtors
concluded that an expedited sale of the Purchased Assets is
necessary to avoid immediate and irreparable harm to the Debtors'
business, creditors and bankruptcy estates.
At the urging of the Debtors and the Creditors' Committee, the
Court approved the Debtors' proposed sale of the Purchased Assets
to LabCorp at a hearing held on June 3, 2010, and the Court
entered an order approving the Debtors' sale of the Purchased
Assets to LabCorp on Wednesday, June 9, 2010. Prior to the sale
hearing, the Debtors, the Creditors' Committee and the Debtors'
senior lenders reached an agreement on an allocation of the
LabCorp purchase price and the balance of the Debtors' assets
which was acceptable to all parties. The LabCorp APA requires
LabCorp to consummate its purchase of the Purchased Assets within
two days following entry of the LabCorp Sale Order, which is
June 11, 2010.
At some point prior to June 11, 2010, the Federal Trade Commission
(the FTC) staff contacted Labcorp and the Debtors to "request
information" related to the Debtors' sale of the Purchased Assets
to LabCorp. The FTC staff told the Debtors that it has concerns
about whether a sale to LabCorp would lessen competition. Quest
is the largest participant in the marketplace of the Debtors'
business; LabCorp is the second largest participant in the
marketplace of the Debtors' business; and Westcliff is the third
largest participant in the marketplace of the Debtors' business.
The FTC staff suggested that the Debtors and MTS formulate a sale
process to be conducted on a very expedited basis to see if there
are any buyers other than Quest or LabCorp who can consummate a
sale quickly and can receive Bankruptcy Court approval. The FTC
staff has approved the form of letter (the New Buyer Solicitation
Letter) to be sent to parties who previously submitted a formal
written indication of interest in purchasing Westcliff's business
or its assets. The New Buyer Solicitation Letter provides that
prospective new buyers have until the close of business on
June 17, 2010, to submit a written offer to the Debtors for the
Purchased Assets and to demonstrate their financial ability to
consummate their purchase.
Given the extreme time exigencies in these cases, as the APA set
an outside closing date of June 23, 2010, and in any event the
Debtors risk running out of money, the Debtors request that the
Court schedule a hearing to be held on June 18, 2010 (or the first
possible date thereafter) on the Debtors' New Buyer sale motion
(which the Debtors will file with the Court on June 14, 2010) to
enable the Debtors to conduct an auction of the Purchased Assets;
to request the Court to approve the results of that auction sale;
and to enable the Debtors to consummate a sale of the Purchased
Assets to the New Buyer on June 21, 2010, or shortly thereafter.
A copy of the asset purchase agreement is available for free at:
http://bankrupt.com/misc/WESTCLIFF_MEDICAL_assetpurchasepact.pdf
About Westcliff Medical
Santa Ana, California-based Westcliff Medical is a provider of
clinical testing and pathology services at 170 locations in
California. Westcliff filed a Chapter 11 petition on May 19 in
Santa Ana, California (Bankr. C.D. Calif. Case No. 10-16743). The
petition said that assets and debts range from $50,000,001 to
$100,000,000. Ron Bender, Esq., who has an office in Los Angeles,
California, assists the Company in its restructuring effort.
Parent BioLabs Inc. also filed for Chapter 11. The parent has no
assets aside from owning Westcliff.
WILLIAM HAWKINS: Wife Escapes $25 Mil. Tax Debt; Husband Doesn't
----------------------------------------------------------------
WestLaw reports that a Chapter 11 debtor willfully attempted to
evade or avoid tax, such that his state and federal income tax
liabilities were excepted from discharge. For more than two and
one-half years before he filed for bankruptcy protection, the
debtor caused himself and his debtor-wife to make unnecessary
expenditures in excess of their earned income. At the same time,
he acknowledged that they had a tax liability of $25,000,000 and
knew that they were insolvent, relied upon this tax liability in
seeking a reduction of his child support payments, paid other
creditors, and planned to file for bankruptcy relief to discharge
their tax obligations. The debtor-wife, however, did not
willfully make unnecessary expenditures while not paying a known
tax liability, but instead reasonably deferred to the debtor-
husband regarding all significant financial decisions. Therefore,
the unpaid taxes were not excepted from her discharge. In re
Hawkins, --- B.R. ----, 2010 WL 1689518, 105 A.F.T.R.2d 2010-2058,
2010-1 USTC P 50,365 (Bankr. N.D. Cal.) (Carlson, J.).
In the course of a four-day trial, the Honorable Thomas E. Carlson
found that William M. "Trip" Hawkins, III, is a very sophisticated
businessman. He received an undergraduate degree in Strategy and
Applied Game Theory from Harvard College, and an M.B.A. from
Stanford University. He was an early employee of Apple Computer,
where he rose to director of marketing. In 1982, he left Apple and
became one of the founders of Electronic Arts, Inc., which became
the largest supplier of computer entertainment software in the
world. By 1996, Trip had a net worth of approximately $100
million, primarily from his holdings of EA shares.
Lisa Warnes-Hawkins married Trip in 1996. She received a B.A. in
communications from Notre Dame de Namur University. Prior to her
marriage, she worked as a leasing agent for a car dealership and
prepared her own tax returns. After her marriage, she worked in
the home and cared for the two children she had with Trip and the
two children Trip had from his first marriage.
In 1990, EA created a wholly owned subsidiary, 3DO, for the
purpose of developing and marketing the devices on which computer
games are played. Trip Hawkins left EA to run 3DO. 3DO went
public in 1993. In 1994, Trip began to sell large amounts of his
EA common stock to invest heavily in 3DO.
In 1996, KPMG, the accounting firm that prepared Debtors' tax
returns, advised Trip that Debtors would recognize very large
capital gains upon the sale of the EA shares, and suggested an
investment that would create capital losses that Debtors could use
to offset those capital gains. Pursuant to this advice, Debtors
invested in a transaction called FLIP (Foreign Leveraged
Investment Portfolio) in 1996, and invested in a transaction
called OPIS (Offshore Portfolio Investment Strategy) in 1998.
FLIP worked in the following way. In September 1996, Trip
purchased 1,551 shares of the United Bank of Switzerland (UBS) for
$1.5 million. He also purchased an option to acquire shares of
Harbourtowne, Inc. (Harbourtowne), a Cayman Islands corporation.
At the same time, Harbourtowne contracted to purchase 30,750
shares of UBS treasury stock from UBS for $30 million. UBS
received an option to repurchase those shares before the sale
closed. UBS exercised that option, and the UBS shares were never
transferred to Harbourtowne. Trip received an opinion letter from
KPMG stating that Trip could add to the tax basis of his UBS
shares the $30 million Harbourtowne had contracted to pay for its
UBS shares. The KPMG opinion letter stated that it was more
likely than not that UBS's repurchase of its shares would be
considered a distribution to Harbourtowne (which was not taxable
because Harbourtowne is a foreign corporation), and that an
appropriate treatment of this transaction would be to transfer
Harbourtowne's basis in its UBS shares to Trip's basis in his UBS
shares.
OPIS worked in a similar way. In October 1998, Trip purchased
9,200 shares of UBS for $1.99 million. He also purchased an option
to acquire an interest in Hogue, Investors LP (Hogue), a Cayman
Islands limited partnership. Hogue contracted to purchase 145,760
shares of UBS treasury stock for $40 million. Pursuant to a call
option, UBS repurchased those shares before the shares were
transferred to Hogue. Trip received opinion letters from KPMG and
Brown & Wood stating that he could add to the tax basis of his UBS
shares the $40 million Hogue had contracted to pay for its UBS
shares.
The Debtors claimed losses from the FLIP and OPIS shelters on
their 1996-2000 tax returns. In December 1996, Trip sold 310
shares of UBS stock, and Debtors claimed resulting losses of
$6,027,306. In December 1997, Trip sold the remaining 1,241 UBS
shares involved in the FLIP transaction, and Debtors claimed
resulting losses of $23,396,798. In December 1998, Trip sold
5,900 of the UBS shares involved in the OPIS transaction, and
Debtors claimed resulting losses of $20,570,283. In December
1999, Trip sold an additional 1,000 UBS shares acquired in the
OPIS transaction, and Debtors claimed resulting losses of
$3,566,297. In December 2000, Trip sold the remaining 2,300 UBS
shares acquired in the OPIS transaction, and Debtors claimed
resulting losses of $8,244,602.
In July 2001, the IRS challenged the validity of basis-shifting
tax shelters, such as FLIP and OPIS. In Notice 2001-45, the IRS
rejected the central concept upon which those tax shelters are
based. The IRS Notice states in substance that when a U.S.
taxpayer owns shares of a foreign corporation, and also owns an
interest in an offshore entity that holds shares of the foreign
corporation, the U.S. taxpayer's basis in his shares should not be
increased to include the offshore entity's basis in its shares of
the foreign corporation when the offshore entity's shares are
redeemed by the foreign corporation. In July 2001, the IRS also
commenced an audit of Debtors' 1997 tax return, focusing its
inquiry upon the losses claimed from their transactions in UBS
stock. The audit was later expanded to include Debtors' 1998,
1999, and 2000 tax returns. The Debtors immediately retained
Hochman, Salkin, Rettig, Toscher & Perez, P.C. (Hochman), a law
firm specializing in tax litigation, to represent them in the
audit. Hochman responded to several IRS requests for information
regarding the FLIP and OPIS transactions. In July 2002, the IRS
Revenue Agent performing the audit of Debtors' returns sent
Debtors' counsel a letter stating that the losses from the FLIP
and OPIS transactions should be disallowed.
In July 2005, Trip filed suit against KPMG in the San Mateo County
Superior Court, alleging claims for fraud and professional
negligence arising out of KPMG's recommendation that the Debtors
invest in the FLIP and OPIS shelters. Trip later dismissed this
action to participate in a federal class action suit brought
against KPMG in the United States District Court in New Jersey.
That litigation was likely to recover less than $3 million.
In October 2005, the Debtors submitted an Offer in Compromise
offering to pay $8 million over two years. The IRS didn't accept
the offer.
In August 2006, the California Franchise Tax Board seized
approximately $6 million from the Debtors' bank accounts.
To deal with their tax debts, William M. "Trip" Hawkins, III, and
Lisa Warnes-Hawkins sought chapter 11 protection (Bankr. N.D.
Calif. Case No. 06-30815) on Sept. 8, 2006, represented by Heinz
Binder, Esq., at Binder & Malter, LLP, in Santa Clara, Calif. At
the time of the filing, the debtors estimated less their assets at
less than $10 million, a $17 million debt owed to the Internal
Revenue Service and a $10 million debt owed to the State of
California.
About $3.5 million from various asset sales in the chapter 11
proceeding was paid the IRS. The Debtors proposed a plan of
reorganization that provided for payment of part of the amount
owed the IRS and FTB through: (1) a new-value contribution of
$500,000; (2) the Debtors' purchase of art and furnishings from
the bankruptcy estate for $270,000; (3) proceeds from the class
action suit against KPMG; and (4) liquidation of the other assets
of the estate. That chapter 11 plan was confirmed on July 13,
2007.
On Dec. 14, 2007, the Debtors filed a declaratory relief action
(Bankr. N.D. Calif. Adv. Pro. No. 07-3139) asking the Bankruptcy
Court to find that the confirmed plan discharged them from their
tax debts. Analyzing the Debtors' lifestyle, Judge Carlson says
Mrs. Hawkins is discharged from the tax debts but Mr. Hawkins
isn't because he attempted to willfully evade or defeat the tax
liabilities.
Mr. Hawkins filed a Notice of Appeal with the Bankruptcy Court and
an appeal (N.D. Calif. Case No. 10-cv-0206) is underway.
WOLF CREEK: Files for Chapter 11 Bankruptcy in Utah
---------------------------------------------------
Wolf Creek Properties LLC filed for bankruptcy under Chapter 11 in
the U.S. Bankruptcy Court for the District of Utah to continue to
manage operations, according to StandardNet.com.
The Company stated that it is in talks with several potential
purchasers to sell non-strategic portion of its operation but it
did not indicate which assets it may sell, report says.
The Company listed both assets and debts of between $10 million
and $50 million. The Company said it owes $449,708 to Randy
Marriot Construction; $64,455, Wolf Creek Recreation Facilities
Association; and $38,535, Damitz, Brooks, Nightingale, Turner &
Morrisset.
Wolf Creek Properties operates a resort and golf club community.
WORLDSPACE SATELLITE: Sr. Lenders Try to Bar Sale of Assets
-----------------------------------------------------------
Senior lenders Liberty Satellite Radio, Inc., and Liberty
Satellite Radio Holdings, LLC, have filed with the U.S. Bankruptcy
Court for the District of Delaware an objection to Worldspace,
Inc., et al.'s request for court approval to sell all or
substantially all of the Debtors' assets, free and clear of liens,
claims, interests, and encumbrances to YAZMI USA LLC.
LSRH is the current lender under the Debtors' pre-petition loan
documents, and LSRI is the current lender under the Debtors' post-
petition loan documents. LSRH and LSRI hold first priority
security interests in substantially all of the assets of each of
the Debtors, as well as in the assets of AsiaSpace Limited, a non-
debtor guarantor.
The Senior Lenders anticipate that a settlement agreement will be
reached before the sale hearing. An express condition of the
Senior Lenders' consent to the sale of the Debtors' assets in the
sale motion is that they receive the settlement agreement
acceptable to the senior lenders in their sole discretion executed
by all parties to the settlement agreement in advance of the sale
hearing.
The settlement agreement, among other things, would resolve the
senior lenders' objections to the sale motion, and the senior
lenders would consent to the relief sought in the sale motion.
The liens of the Senior Lenders would attach to the proceeds of
the sale.
The Senior Lenders reserve all rights to object to the sale motion
if the settlement agreement is not executed by all parties and
delivered to the Senior Lenders in advance of the sale hearing.
The Senior Lenders ask the Court to require the Debtors to hold
all proceeds of the sale in escrow with the liens of the senior
lenders attaching to the proceeds of the sale, pending approval of
the settlement agreement by the Court. The Senior Lenders ask
that, in the event that the fully executed settlement agreement
isn't provided to the Senior Lenders prior to the sale hearing,
the Court deny the Debtors' request for approval to sell its
assets.
The Senior Lenders are represented by The Ashby & Geddes, P.A.,
and Sherman & Howard L.L.C.
British Virgin Islands-based WorldSpace Satellite Company Ltd.
filed for Chapter 11 bankruptcy protection on May 18, 2010 (Bankr.
D. Del. Case No. 10-11625). Laura Davis Jones, Esq., at Pachulski
Stang Ziehl & Jones LLP, assists the Company in its restructuring
effort. The Company listed $100,000,001 to $500,000,000 in assets
and $500,000,001 to $1,000,000,000 in liabilities.
XIOMARA VARELA: Voluntary Chapter 11 Case Summary
-------------------------------------------------
Debtor: Xiomara E. Varela
12318 Downey Avenue
Downey, CA 90242
Bankruptcy Case No.: 10-33274
Chapter 11 Petition Date: June 8, 2010
Court: U.S. Bankruptcy Court
Central District of California (Los Angeles)
Judge: Ernest M. Robles
Debtor's Counsel: Arshak Bartoumian, Esq.
Law Offices of Vincent W. Davi
150 N. Santa Anita Avenue Suite
Arcadia, CA 91202
Tel: (626) 446-6442
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 creditors together with its
petition.
The petition was signed by the Debtor.
YANKEE CANDLE: Bank Debt Trades at 5% Off in Secondary Market
-------------------------------------------------------------
Participations in a syndicated loan under which The Yankee Candle
Company, Inc., is a borrower traded in the secondary market at
94.75 cents-on-the-dollar during the week ended Friday, June 11,
2010, according to data compiled by Loan Pricing Corp. and
reported in The Wall Street Journal. This represents a drop of
0.68 percentage points from the previous week, The Journal
relates. The Company pays 200 basis points above LIBOR to borrow
under the facility. The bank loan matures on Feb. 6, 2014, and
carries Moody's Ba3 rating and Standard & Poor's BB- rating. The
debt is one of the biggest gainers and losers among 185 widely
quoted syndicated loans with five or more bids in secondary
trading for the week ended Friday.
Based in South Deerfield, Massachusetts, The Yankee Candle
Company, Inc., designs, manufactures, and is a wholesaler and
retailer of premium scented candles. Yankee has a 39-year history
of offering distinctive products and marketing them as affordable
luxuries and consumable gifts. The Company sells its products
through a North American wholesale customer network of 19,689
store locations, a growing base of Company owned and operated
retail stores (491 located in 43 states as of Jan. 3, 2009,
including 28 Illuminations stores), direct mail catalogs, and its
Internet Web sites:
http://www.yankeecandle.com
http://www.illuminations.com
http://www.aromanaturals.com
Outside of North America, the Company sells its products primarily
through its subsidiary, Yankee Candle Company (Europe), Ltd.,
which has an international wholesale customer network of 2,994
store locations and distributors covering approximately 23
countries.
Yankee Holding Corp. is a holding company formed in connection
with the Company's Merger with an affiliate of Madison Dearborn
Partners, LLC, on Feb. 6, 2007, and is now the parent company of
The Yankee Candle Company, Inc.
Yankee Holding Corp. and subsidiaries had $1.372 billion in total
assets, and $1.375 billion in total liabilities, resulting in
$2.82 million in stockholders' deficit as of Jan. 3, 2009.
* Investors Ignoring Red Flags on Municipal Bonds, WSJ Says
-----------------------------------------------------------
The Wall Street Journal's Ianthe Jeanne Dugan reports some market
specialists have said investors are ignoring warning signs in the
$2.8 trillion municipal-bond market, raising the risk of a
reckoning.
The Journal notes numerous municipalities are struggling
financially -- Central Falls, a Rhode Island city, recently said
it faces insolvency; Harrisburg, the capital of Pennsylvania, is
considering a municipal-bankruptcy filing; and investor Warren
Buffett recently warned of a "terrible problem" ahead for
municipal bonds.
"But municipal-bond prices aren't reflecting much concern. Yields
on municipal bonds maturing in 2020 stood at 3.15% Friday, up
slightly for the week but down from 3.3% in April. As prices and
yields move inversely, this indicates lessening concern among muni
investors, even as the cost of insuring against defaults has been
rising," Mr. Dugan writes.
According to Mr. Dugan, Matt Fabian, managing director of
consulting firm Municipal Market Advisors, noted that 223 out of
more than 40,000 municipal issuers defaulted on their debt
payments in the past year -- representing about $6.4 billion, or
just 0.002% of outstanding municipal debt.
According to Mr. Dugan, some market specialists say the gaps
between municipal revenue and expenditures are unsustainable:
* "The day of reckoning is here," says Jeffrey Schoenfeld,
chief investment officer of Brown Brothers Harriman. "But
municipal investors continue to act as if there's no
default risk in municipal bonds."
* The ratings system "tends to rely on history, which is not
a good guide," says Michael Aronstein, chief investment
officer of Oscar Gruss & Sons Inc., which advises
professional investors. "Not everybody is going to
default, but investors need to do their own analysis and
in-depth research to really understand what they are
buying."
* Mr. Buffett -- during a hearing by the Financial Crisis
Inquiry Commission, which is collecting information for
Congress on what caused the nation's financial crisis --
said he was worried about how municipalities will pay for
retirement and health benefits for public workers and that
the federal government may ultimately be compelled to bail
out states.
Mr. Dugan notes that Mr. Buffett's Berkshire Hathaway Inc. has
trimmed its municipal-bond investments to less than $4 billion as
of the first quarter of 2010 from about $4.7 billion at the end of
2008.
* BOND PRICING -- For the Week From June 7 to 11, 2010
------------------------------------------------------
Company Coupon Maturity Bid Price
------- ------ -------- ---------
155 E TROPICANA 8.750% 4/1/2012 5.250
ABITIBI-CONS FIN 7.875% 8/1/2009 18.000
AHERN RENTALS 9.250% 8/15/2013 39.948
ALERIS INTL INC 9.000% 12/15/2014 0.401
AMBAC INC 9.375% 8/1/2011 27.450
AMER GENL FIN 4.875% 6/15/2010 99.379
AMER GENL FIN 5.000% 6/15/2010 99.700
BANK NEW ENGLAND 8.750% 4/1/1999 11.750
BANK NEW ENGLAND 9.875% 9/15/1999 11.875
BANKUNITED FINL 6.370% 5/17/2012 7.250
BLOCKBUSTER INC 9.000% 9/1/2012 9.250
BOWATER INC 6.500% 6/15/2013 35.000
BOWATER INC 9.500% 10/15/2012 37.500
BRODER BROS CO 11.250% 10/15/2010 88.000
CAPMARK FINL GRP 5.875% 5/10/2012 28.950
CELL THERAPEUTIC 4.000% 7/1/2010 94.250
CHK-CALL06/10 7.500% 9/15/2013 102.500
CHK-CALL06/10 7.500% 6/15/2014 102.500
COLONIAL BANK 6.375% 12/1/2015 0.200
COUNTRYWIDE FINL 5.450% 6/15/2010 99.860
DOLLAR GENERAL 8.625% 6/15/2010 99.500
EDDIE BAUER HLDG 5.250% 4/1/2014 5.000
ELEC DATA SYSTEM 3.875% 7/15/2023 89.000
EVERGREEN SOLAR 4.000% 7/15/2013 30.010
FAIRPOINT COMMUN 13.125% 4/1/2018 16.125
FAIRPOINT COMMUN 13.125% 4/2/2018 11.500
FEDDERS NORTH AM 9.875% 3/1/2014 0.877
FINLAY FINE JWLY 8.375% 6/1/2012 0.750
FLEETWOOD ENTERP 14.000% 12/15/2011 15.375
FRIEDE GOLDMAN 4.500% 9/15/2004 0.875
GASCO ENERGY INC 5.500% 10/5/2011 62.500
GENERAL MOTORS 7.125% 7/15/2013 29.000
GENERAL MOTORS 7.700% 4/15/2016 28.250
GENERAL MOTORS 9.450% 11/1/2011 28.500
HAWAIIAN TELCOM 9.750% 5/1/2013 2.250
HAWAIIAN TELCOM 12.500% 5/1/2015 1.400
IDLEAIRE TECH CP 13.000% 12/15/2012 1.000
INDALEX HOLD 11.500% 2/1/2014 2.800
INN OF THE MOUNT 12.000% 11/15/2010 41.000
INTL LEASE FIN 4.250% 6/15/2010 99.500
INTL LEASE FIN 4.800% 6/15/2010 98.500
INTL LEASE FIN 5.000% 6/15/2010 99.772
INTL LEASE FIN 5.500% 6/15/2010 99.750
INTL LEASE FIN 5.600% 6/15/2010 99.420
LANDRY'S RESTAUR 9.500% 12/15/2014 84.800
LEHMAN BROS HLDG 0.450% 12/27/2013 20.000
LEHMAN BROS HLDG 1.250% 6/13/2012 19.050
LEHMAN BROS HLDG 1.500% 3/23/2012 20.000
LEHMAN BROS HLDG 4.375% 11/30/2010 19.260
LEHMAN BROS HLDG 4.500% 8/3/2011 19.000
LEHMAN BROS HLDG 4.700% 3/6/2013 18.500
LEHMAN BROS HLDG 4.800% 2/27/2013 18.600
LEHMAN BROS HLDG 4.800% 3/13/2014 20.000
LEHMAN BROS HLDG 5.000% 1/14/2011 19.200
LEHMAN BROS HLDG 5.000% 1/22/2013 18.375
LEHMAN BROS HLDG 5.000% 2/11/2013 18.500
LEHMAN BROS HLDG 5.000% 3/27/2013 18.500
LEHMAN BROS HLDG 5.000% 8/3/2014 18.500
LEHMAN BROS HLDG 5.000% 8/5/2015 18.550
LEHMAN BROS HLDG 5.100% 1/28/2013 18.500
LEHMAN BROS HLDG 5.150% 2/4/2015 18.600
LEHMAN BROS HLDG 5.250% 2/6/2012 19.000
LEHMAN BROS HLDG 5.250% 2/11/2015 18.600
LEHMAN BROS HLDG 5.500% 4/4/2016 20.625
LEHMAN BROS HLDG 5.500% 2/4/2018 18.500
LEHMAN BROS HLDG 5.500% 2/19/2018 18.500
LEHMAN BROS HLDG 5.550% 2/11/2018 18.500
LEHMAN BROS HLDG 5.600% 1/22/2018 18.500
LEHMAN BROS HLDG 5.625% 1/24/2013 20.375
LEHMAN BROS HLDG 5.700% 1/28/2018 18.500
LEHMAN BROS HLDG 5.750% 4/25/2011 19.000
LEHMAN BROS HLDG 5.750% 7/18/2011 19.750
LEHMAN BROS HLDG 5.750% 5/17/2013 19.070
LEHMAN BROS HLDG 5.875% 11/15/2017 19.260
LEHMAN BROS HLDG 6.000% 4/1/2011 21.000
LEHMAN BROS HLDG 6.000% 7/19/2012 20.438
LEHMAN BROS HLDG 6.000% 12/18/2015 19.500
LEHMAN BROS HLDG 6.000% 2/12/2018 19.500
LEHMAN BROS HLDG 6.000% 1/22/2020 17.100
LEHMAN BROS HLDG 6.200% 9/26/2014 19.875
LEHMAN BROS HLDG 6.625% 1/18/2012 20.000
LEHMAN BROS HLDG 6.750% 7/1/2022 18.675
LEHMAN BROS HLDG 7.000% 4/16/2019 18.500
LEHMAN BROS HLDG 7.000% 12/28/2037 17.840
LEHMAN BROS HLDG 7.730% 10/15/2023 19.800
LEHMAN BROS HLDG 7.875% 11/1/2009 19.125
LEHMAN BROS HLDG 8.000% 3/5/2022 17.500
LEHMAN BROS HLDG 8.000% 3/17/2023 19.500
LEHMAN BROS HLDG 8.050% 1/15/2019 19.820
LEHMAN BROS HLDG 8.400% 2/22/2023 17.950
LEHMAN BROS HLDG 8.500% 8/1/2015 19.000
LEHMAN BROS HLDG 8.750% 12/21/2021 19.500
LEHMAN BROS HLDG 8.750% 2/6/2023 17.050
LEHMAN BROS HLDG 8.800% 3/1/2015 19.250
LEHMAN BROS HLDG 8.920% 2/16/2017 16.000
LEHMAN BROS HLDG 9.500% 12/28/2022 19.000
LEHMAN BROS HLDG 9.500% 1/30/2023 17.601
LEHMAN BROS HLDG 9.500% 2/27/2023 19.000
LEHMAN BROS HLDG 10.000% 3/13/2023 22.500
LEHMAN BROS HLDG 10.375% 5/24/2024 18.510
LEHMAN BROS HLDG 11.000% 6/22/2022 19.550
LEHMAN BROS HLDG 11.000% 7/18/2022 17.500
LEHMAN BROS HLDG 11.000% 8/29/2022 19.000
LEHMAN BROS HLDG 11.000% 3/17/2028 18.500
LEINER HEALTH 11.000% 6/1/2012 8.750
LLL-CALL06/10 6.125% 1/15/2014 102.050
MERRILL LYNCH 3.470% 3/9/2011 99.183
METALDYNE CORP 11.000% 6/15/2012 1.600
MGM MIRAGE 8.375% 2/1/2011 102.800
NEFF CORP 10.000% 6/1/2015 9.625
NEWPAGE CORP 10.000% 5/1/2012 58.000
NEWPAGE CORP 12.000% 5/1/2013 27.000
NORTH ATL TRADNG 9.250% 3/1/2012 52.000
PALM HARBOR 3.250% 5/15/2024 73.500
POPE & TALBOT 8.375% 6/1/2013 0.500
QUANTUM CORP 4.375% 8/1/2010 92.554
RASER TECH INC 8.000% 4/1/2013 38.000
RESIDENTIAL CAP 8.375% 6/30/2010 99.000
SPHERIS INC 11.000% 12/15/2012 22.000
STATION CASINOS 6.000% 4/1/2012 6.000
STATION CASINOS 6.500% 2/1/2014 1.000
STATION CASINOS 7.750% 8/15/2016 6.000
THORNBURG MTG 8.000% 5/15/2013 2.500
TIMES MIRROR CO 7.250% 3/1/2013 27.750
TOUSA INC 7.500% 3/15/2011 8.900
TOUSA INC 7.500% 1/15/2015 4.000
TOUSA INC 10.375% 7/1/2012 4.000
TRANS-LUX CORP 8.250% 3/1/2012 7.673
TRICO MARINE 3.000% 1/15/2027 9.481
TRICO MARINE SER 8.125% 2/1/2013 52.000
VERASUN ENERGY 9.375% 6/1/2017 6.625
VERENIUM CORP 5.500% 4/1/2027 33.000
VIRGIN RIVER CAS 9.000% 1/15/2012 45.500
WASH MUT BANK FA 5.125% 1/15/2015 0.750
WASH MUT BANK NV 5.500% 1/15/2013 0.610
WASH MUT BANK NV 5.950% 5/20/2013 0.300
WASH MUT BANK NV 6.750% 5/20/2036 0.380
WCI COMMUNITIES 7.875% 10/1/2013 1.000
WCI COMMUNITIES 9.125% 5/1/2012 3.400
WDAC SUBSIDIARY 8.375% 12/1/2014 4.994
WERNER HOLDINGS 10.000% 11/15/2007 1.020
YELLOW CORP 5.000% 8/8/2023 61.000
*********
Monday's edition of the TCR delivers a list of indicative prices
for bond issues that reportedly trade well below par. Prices are
obtained by TCR editors from a variety of outside sources during
the prior week we think are reliable. Those sources may not,
however, be complete or accurate. The Monday Bond Pricing table
is compiled on the Friday prior to publication. Prices reported
are not intended to reflect actual trades. Prices for actual
trades are probably different. Our objective is to share
information, not make markets in publicly traded securities.
Nothing in the TCR constitutes an offer or solicitation to buy or
sell any security of any kind. It is likely that some entity
affiliated with a TCR editor holds some position in the issuers"
public debt and equity securities about which we report.
Each Tuesday edition of the TCR contains a list of companies with
insolvent balance sheets whose shares trade higher than $3 per
share in public markets. At first glance, this list may look like
the definitive compilation of stocks that are ideal to sell short.
Don't be fooled. Assets, for example, reported at historical cost
net of depreciation may understate the true value of a firm's
assets. A company may establish reserves on its balance sheet for
liabilities that may never materialize. The prices at which
equity securities trade in public market are determined by more
than a balance sheet solvency test.
A list of Meetings, Conferences and Seminars appears in each
Wednesday's edition of the TCR. Submissions about insolvency-
related conferences are encouraged. Send announcements to
conferences@bankrupt.com/
On Thursdays, the TCR delivers a list of recently filed
Chapter 11 cases involving less than $1,000,000 in assets and
liabilities delivered to nation's bankruptcy courts. The list
includes links to freely downloadable images of these small-dollar
petitions in Acrobat PDF format.
Each Friday's edition of the TCR includes a review about a book of
interest to troubled company professionals. All titles are
available at your local bookstore or through Amazon.com. Go to
http://www.bankrupt.com/books/to order any title today.
Monthly Operating Reports are summarized in every Saturday edition
of the TCR.
The Sunday TCR delivers securitization rating news from the week
then-ending.
For copies of court documents filed in the District of Delaware,
please contact Vito at Parcels, Inc., at 302-658-9911. For
bankruptcy documents filed in cases pending outside the District
of Delaware, contact Ken Troubh at Nationwide Research &
Consulting at 207/791-2852.
*********
S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter is a daily newsletter co-published
by Bankruptcy Creditors" Service, Inc., Fairless Hills,
Pennsylvania, USA, and Beard Group, Inc., Frederick, Maryland,
USA. Marites Claro, Joy Agravante, Rousel Elaine Tumanda, Howard
C. Tolentino, Joseph Medel C. Martirez, Denise Marie Varquez,
Philline Reluya, Ronald C. Sy, Joel Anthony G. Lopez, Cecil R.
Villacampa, Sheryl Joy P. Olano, Carlo Fernandez, Christopher G.
Patalinghug, and Peter A. Chapman, Editors.
Copyright 2010. All rights reserved. ISSN: 1520-9474.
This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding, electronic
re-mailing and photocopying) is strictly prohibited without prior
written permission of the publishers. Information contained
herein is obtained from sources believed to be reliable, but is
not guaranteed.
The TCR subscription rate is $775 for 6 months delivered via e-
mail. Additional e-mail subscriptions for members of the same
firm for the term of the initial subscription or balance thereof
are $25 each. For subscription information, contact Christopher
Beard at 240/629-3300.
*** End of Transmission ***