/raid1/www/Hosts/bankrupt/TCR_Public/100617.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
Thursday, June 17, 2010, Vol. 14, No. 166
Headlines
30-32 OLIVER: Section 341(a) Meeting Scheduled for July 7
131 ARLINGTON: Section 341(a) Meeting Scheduled for July 7
661 S. SHATTO: Case Summary & 23 Largest Unsecured Creditors
ABITIBIBOWATER INC: BCFPI Wants SERP Beneficiaries Identified
ABITIBIBOWATER INC: E&Y Submits 6th Monitor's Report
ABITIBIBOWATER INC: Receivership Order on 4513451 Canada Entered
ACM-TEXAS INC: Debtor Recovers on Promissory Estoppel Theory
AFLRED VILLALOBOS: Files for Chapter 11 Bankruptcy in Nevada
ANAVERDE LLC: Judge Signs Order Confirming Plan
ASARCO LLC: US Seeks to Block Asarco Bid for Financial Papers
ATLANTIC BROADBAND: Moody's Upgrades Corp. Family Rating to 'B1'
AVALON CARRIAGE: Case Summary & 13 Largest Unsecured Creditors
BEAR ISLAND: Creditors Still Investigate Secured Loans
BI-LO LLC: GE Capital Agents $150MM in Exit Financing for Firm
BLOCKBUSTER INC: Looks at Bankruptcy Filing, Other Options
BP PLC: Agrees to Earmark $20 Billion for Oil Spill Claims
BRIGHAM EXPLORATION: Moody's Raises Corp. Family Rating to 'Caa1'
CANWEST GLOBAL: To Call Meetings of Creditors for July 19
CALIFORNIA COASTAL: Obtains $182 Million Financing Commitment
CHABAD-LUBAVITCH: Case Summary & 7 Largest Unsecured Creditors
CHEMTURA CORP: Securities Litigation Deal Modified to $11.4MM
CHRISTOPHER PAGE: Case Summary & Largest Unsecured Creditor
CHEROKEE RUN: Not Allowed to Cherry-Pick Lease Provisions
CIRCUIT CITY: Mediation May Break Logjam on Liquidating Plan
COLONIAL BANCGROUP: Court Grants 2-Month Exclusivity Extension
COLONIAL BANCGROUP: Ex-Chair Indicted on His Role in Bank Failure
CORUS BANKSHARES: Files for Bankruptcy with $530 Million in Debt
DANNY AHN: Case Summary & 14 Largest Unsecured Creditors
DAVID REDDING: Case Summary & 8 Largest Unsecured Creditors
DENNY'S CORP: Board Chair Smithart-Oglesby Named Interim CEO
DOLLAR THRIFTY: Six Individuals Elected as Directors
DORAL ENERGY: Completes Permian Basin Oil & Gas Asset Divestiture
ENERGAS RESOURCES: Delays Filing of Quarterly Report on Form 10-Q
EXTENDED STAY: Starwood Wants to Halt Debtor's Plan Exclusivity
FAIRFIELD SENTRY: Files for Chapter 15 Bankruptcy in Manhattan
FANNIE MAE: FHFA Directs Delisting of Stock From NYSE
FEDERAL-MOGUL: J. Kaminski Resigns as SVP & CFO
FEDERAL-MOGUL: To Axe Health Care Coverage by End of June
FEY 240: Disclosure Statement Hearing Continued Until July 14
FLYING J: Comdata Agrees to Pay $9MM to Settle Antitrust Suit
FOXCO ACQUISITION: Moody's Affirms 'Caa1' Corporate Family Rating
FREDDIE MAC: FHFA Directs Delisting of Stock From NYSE
FX LUXURY: Withdraws Prepackaged Liquidation Plan
GATEWAY CENTER: Case Summary & 5 Largest Unsecured Creditors
GENERAL LAND: Section 341(a) Meeting Scheduled for July 7
GENERAL MOTORS: New GM Recalls 1.5MM Units for Wiper Fire Hazard
GENERAL MOTORS: New GM to Reinstate Cut Dealers
GRAMERCY CAPITAL: Completes Exchange of Remaining Notes
GROVELAND ESTATES: Case Dismissed for Guidelines Non-Compliance
I.D. INTERACTIVE: Case Summary & 20 Largest Unsecured Creditors
IMPERIAL CAPITAL: Wants September 16 Extension for Plan Filing
INFOLOGIX INC: To Sell Touch Screen Systems for $2.2 Million
INNATECH LLC: Court Denies Sale of Real Property to Creditor
INNATECH LLC: Has Access to Bridge Healthcare Cash Collateral
INNOVATIVE COMPANIES: Can Reject Leases and Abandon Property
INTEGRITY BANCSHARES: Appeals Court Rejects Trustee's Bid
KASDEN FUEL: Case Summary & 15 Largest Unsecured Creditors
KERLING PLC: S&P Raises Long-term Corporate Credit Rating to 'B'
LEHMAN BROTHERS: Bennett Sues LBHI for Contract Breach
LEHMAN BROTHERS: FCIC Mulls Deeper Probe on JPM
LEHMAN BROTHERS: Keeney Sues LBHI for Title Dispute
LEHMAN BROTHERS: Valukas Charges $20 Million in Fees
LEXINGTON PRECISION: May Use Prepetition Secured Lenders' Cash
LOCAL TV: Moody's Upgrades Corporate Family Rating to 'Caa1'
M-FOODS HOLDINGS: S&P Affirms Corporate Credit Rating at 'B+'
MAJESTIC LIQUOR: Court Extends Filing of Schedules Until July 5
MAJESTIC LIQUOR: Drops Forshey as Bankr. Counsel, Taps Goodrich
MAJESTIC LIQUOR: Wants to Hire Focus as Financial Advisor
MAJESTIC LIQUOR: Section 341(a) Meeting Scheduled for July 16
MAJESTIC LIQUOR: Wants Margulies as Public Relations Counsel
MAJESTIC STAR: Promises to File Plan by August 20
MANIS LUMBER: N.D. Ga. Okays Retroactive Lease Rejection
MEDICAL STAFFING: To Be Sold to Lenders in Chapter 11
MEDICAL STAFFING: Prepackaged Plan Would Wipe Out Shareholders
MEDSCI DIAGNOSTICS: Section 341(a) Meeting Scheduled for July 15
MEDSCI DIAGNOSTICS: Taps Edgardo Munoz as Bankruptcy Counsel
MEDSCI DIAGNOSTICS: Wants Rafael Gonzalez Velez as Special Counsel
MOVIE GALLERY: Selling DVDs and Video Games for $8 Million
MOTELS OF SEYMOUR: Case Summary & 20 Largest Unsecured Creditors
MOVIE GALLERY: Canada Unit Liquidates Merchandise in 181 Stores
MPF CORP: Disclosure Statement Approved, Plan Confirmed
MTI TECHNOLOGY: Plan Confirmation Hearing Set for August 26
NEXHORIZON COMMS: Case Summary & 20 Largest Unsecured Creditors
OMAR SPAHI: Has Until June 25 to Propose Chapter 11 Plan
OSCIENT PHARMACEUTICALS: Ch. 11 Plan Filing Moved to June 29
PEEK'N PEAK RESORT: Financial Woes Prompt Bankruptcy Filing
POWER DEVELOPMENT: Voluntary Chapter 11 Case Summary
PPA HOLDINGS: Wells Fargo Wants Case Converted to Chapter 7
PORTFOLIO INVESTMENTS: Sec. 341(a) Meeting Set for June 24
PORTFOLIO INVESTMENTS: Files Schedules and Statement
RATHGIBSON INC: Emerges From Chapter 11 Bankruptcy Protection
REDWINE RESOURCES: Files Schedules of Assets and Debts
REDWINE RESOURCES: Sec. 341(a) Meeting Set for June 30
REDWINE RESOURCES: Seeks to Hire Rochelle McCullough as Counsel
REDWINE RESOURCES: Seeks to Use BofA's Cash; Looks to Sell Assets
ROBERT MARTINEZ: Case Summary & 20 Largest Unsecured Creditors
SAINT VINCENTS: Files Schedules of Assets & Debts, Statement
SAINT VINCENTS: Proposes Transfer Agreements for Studies
SAINT VINCENTS: Sale Protocol for Medical Clinics Approved
SAINT VINCENTS: Seeks Approval of Modified Incentive Program
SALPARE BAY: Taps Farleigh Wada as Bankruptcy Counsel
SHERWOOD FARMS: In Discussions on a Chapter 11 Plan
SISKEY HAULING: Case Summary & 20 Largest Unsecured Creditors
SMURFIT-STONE: Committee Objects to Moore & Klinger Legal Fees
SMURFIT-STONE: Continues to Market Two Closed Mills
SMURFIT-STONE: Court Issues Memo Overruling Plan Objections
SPHERIS INC: Files Plan; Recovery Not Yet Specified
SPHERIS INC: Has Exclusive Plan Rights Until September 1
SPIRIT AIRLINES: Has Pact with ALPA; Resumes Flight on Friday
STEVEN NIKOLICH: Files Schedules and Statement
STEVEN NIKOLICH: Sec. 341(a) Meeting Set for June 24
SW BOSTON: Sec. 341(a) Meeting in Arlington Case on July 7
TAYLOR BEAN: Has $5 Million in D&O Insurance Coverage
TAYLOR-WHARTON: Emerges From Chapter 11
TC GLOBAL: Andy Wynne Resigns as Exec. Vice President & CFO
TENET HEALTHCARE: Raises Outlook for 2010 Adjusted EBITDA by $50MM
TERREL REID: Has Access to Bank of America's Cash Collateral
TEXAS RANGERS: Unsecured Creditors Want Interest on Claims
TEXAS RANGERS: HSG Lenders Want Trustee to Replace Tom Hicks
TEXAS RANGERS: Court to Rule Next Week on Plan Voting
THE ESTATES OF LAKE BLALOCK: Lender Gets Relief from Stay
TRIBUNE CO: Bondholders Seek to Block Plan at the FCC
TRICO MARINE: Amends Credit Agreement with Nordea & Obsidian
TWIN TOWN: Case Summary & 7 Largest Unsecured Creditors
UAL CORP: Presents Update on Financial & Operational Outlook
UNIVISION COMMUNICATIONS: Fitch Affirms 'B' Issuer Default Rating
VALENCE TECHNOLOGY: PMB Helin Raises Going Concern Doubt
VISTEON CORP: Revises Plan to Woo Shareholders' Support
WASHINGTON MUTUAL: Renewed Call for Examiner Gets Many Objections
WEST WINDS: Case Summary & 7 Largest Unsecured Creditors
WESTLAKE CHEMICAL: Moody's Upgrades Corp. Family Rating to 'Ba1'
WESTLAKE CHEMICAL: S&P Raises Corporate Credit Rating to 'BB+'
WEXTRUST CAPITAL: SEC Receivership May Block Involuntary Ch. 11
WILLIAM IYASERE: Case Summary & 20 Largest Unsecured Creditors
WISH I: Stay Lifted on Asset Cued Chapter 11 Case Dismissal
WOLF HOLLOW: Moody's Affirms 'B2' Rating on $279 Mil. Facilities
WORKSTREAM INC: Jerome Kelliher Resigns as Chief Financial Officer
YELLOW MEDIA: S&P Assigns 'BB+' Rating on CDN200 Mil. Debentures
YRC WORLDWIDE: To Achieve Positive Adjusted EBITDA for 2nd Quarter
* CIT's Bielinski Says M&A Deals for Restaurants on the Rise
* $3.3-Bil. in Claims Changed Hands in May, SecondMarket Says
* S&P's Weakest Links Continue Downward Trend in June 2010
* S&P Warns of Rising Corporate Defaults
* Duff & Phelps Acquires Canada's Cole & Partners
* Chapter 11 Cases with Assets & Liabilities Below $1,000,000
*********
30-32 OLIVER: Section 341(a) Meeting Scheduled for July 7
---------------------------------------------------------
The U.S. Trustee for Region 1 will convene a meeting of 30-32
Oliver Street Corporation's creditors on July 7, 2010, at 12:30
p.m. The meeting will be held at Suite 1055, U.S. Trustee's
Office, John W. McCormack Federal Building, 5 Post Office Square,
10th Floor, Boston, MA 02109-3934.
This is the first meeting of creditors required under Section
341(a) of the U.S. Bankruptcy Code in all bankruptcy cases.
All creditors are invited, but not required, to attend. This
Meeting of Creditors offers the one opportunity in a bankruptcy
proceeding for creditors to question a responsible office of the
Debtor under oath about the company's financial affairs and
operations that would be of interest to the general body of
creditors.
Boston, Massachusetts-based 30-32 Oliver Street Corporation --
including affiliates 131 Arlington Street Trust and General Land
Corporation -- filed for Chapter 11 bankruptcy protection on June
4, 2010 (Bankr. D. Mass. Case No. 10-16173). Harold B. Murphy,
Esq., at Hanify & King, P. C., assists the Company in its
restructuring effort. The Company listed $1,000,001 to
$10,000,000 in assets and $100,000,001 to $500,000,000 in
liabilities.
Affiliates 100 Stuart Street, LLC, Auto Sales & Service, Inc., /10
General Trading Company, and SW Boston Hotel Venture, LLC (Case
No. 10-14535) filed for Chapter 11 on April 28, 2010.
131 ARLINGTON: Section 341(a) Meeting Scheduled for July 7
----------------------------------------------------------
The U.S. Trustee for Region 1 will convene a meeting of 131
Arlington Street Trust, A Massachusetts Business Trust's creditors
on July 7, 2010, at 12:30 p.m. The meeting will be held at Suite
1055, U.S. Trustee's Office, John W. McCormack Federal Building, 5
Post Office Square, 10th Floor, Boston, MA 02109-3934.
This is the first meeting of creditors required under Section
341(a) of the U.S. Bankruptcy Code in all bankruptcy cases.
All creditors are invited, but not required, to attend. This
Meeting of Creditors offers the one opportunity in a bankruptcy
proceeding for creditors to question a responsible office of the
Debtor under oath about the company's financial affairs and
operations that would be of interest to the general body of
creditors.
Boston, Massachusetts-based 131 Arlington Street Trust, A
Massachusetts Business Trust, filed for Chapter 11 bankruptcy
protection on June 4, 2010 (Bankr. D. Mass. Case No. 10-16177).
Harold B. Murphy, Esq., at Hanify & King, P.C., assists the
Company in its restructuring effort. The Company listed
$1,000,001 to $10,000,000 in assets and $100,000,001 to
$500,000,000 in liabilities.
661 S. SHATTO: Case Summary & 23 Largest Unsecured Creditors
------------------------------------------------------------
Debtor: 661 S. Shatto Place, LLC.
1425 W. 7th Street
Los Angeles, CA 90017
Bankruptcy Case No.: 10-33916
Chapter 11 Petition Date: June 11, 2010
Court: United States Bankruptcy Court
Central District of California (Los Angeles)
Judge: Richard M. Neiter
Debtor's Counsel: Stephen L. Burton, Esq.
15260 Ventura Blvd Ste 640
Sherman Oaks, CA 91403
Tel: (818) 501-5055
Fax: (818) 501-5849
E-mail: steveburtonlaw@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 23 largest unsecured creditors
filed together with the petition is available for free
at http://bankrupt.com/misc/cacb10-33916.pdf
The petition was signed by Bret Mosher, officer.
ABITIBIBOWATER INC: BCFPI Wants SERP Beneficiaries Identified
-------------------------------------------------------------
Bowater Pulp and Paper Canada Inc., formerly "Avenor Inc.",
implemented a Supplemental Executive Retirement Plan effective
July 16, 1993. The 1993 SERP was restated into three SERPs on or
about July 1 1995:
(a) Supplemental Retirement Benefit Plan for Grade 11 and
under Employees of Bowater Pulp and Paper Canada Inc.;
(b) Supplemental Retirement Benefit Plan for Grade 12 and
under Employees of Bowater Pulp and Paper Canada Inc.; and
(c) Senior Executive Retirement Plan.
Effective January 1, 2002, BPPC and BCFPI merged and continued
their operations under the name of BCFPI. Effective on the
merger date, BCFPI became the sponsor of the BPPC SERPs which
were renamed:
(a) Supplemental Retirement Benefit Plan for Grade 27 and
under Employees of BCFPI;
(b) Supplemental Retirement Benefit Plan for Grade 28 and
under Employees of BCFPI; and
(c) Senior Executive Retirement Plan of BCFPI.
Accordingly, BCFPI is the sponsor of the three Supplemental
Executive Retirement Plans to provide post-retirement benefits to
eligible employees and to the beneficiaries of any deceased
participants. The purpose of the SERPs was to provide
supplemental retirement benefits to be paid to the participants
in addition to those payable from any registered pension plan of
BCFPI.
Pursuant to the SERPs, BCFPI had the obligation to pay the
benefits under the SERPs out of its operating funds as the
benefits become due. There were no contributions by the
participants, and BCFPI was under no obligation to pay
contributions in advance to fund the benefits. BCFPI was
required, however, to establish a trust to hold documentary
credits or letters of guarantee or investments to secure the
payment of the benefits under the SERPs to the members.
The benefits under the SERPs are partially secured by a letter of
credit held by The Royal Trust Company in trust for some or all
of the members of the SERPs.
Since 2003, there have been a number of letters and notices to
the members of the SERPs and purported changes to the SERPs that
would affect which members' benefits are secured by the letter of
credit. Because certain amendments to the SERPs were not
formally adopted by BCFPI, there is a lack of clarity as to which
members are entitled to share in the proceeds of the letter of
credit and how the proceeds are to be distributed.
RTC is entitled to rely on instructions from BCFPI and has
requested instructions from BCFPI. It is in the interests of all
of the members of the SERPs that BCFPI ask the Canadian Court to
confirm the instructions that BCFPI will give to RTC.
Specifically, BCFPI asks the Canadian Court to declare that the
only persons entitled to continue to receive monthly SERP
payments from the proceeds of the letter of credit held by RTC
are:
(i) Canadian resident members of the SERPs who retired before
December 31, 2003;
(ii) Canadian resident members of the SERPs who retired after
December 31, 2003 but before May 26, 2009, including
Douglas Campbell, but only on the value of their SERPs
benefits accrued up to December 31, 2003; and
(iii) U.S. resident members of the SERPs, including Jerry
Soderberg.
A complete list of the Members is available for free at:
http://bankrupt.com/misc/CCAA_BowaterRetirementPlanMemberList.pdf
BCFPI further asks the Canadian Court to compel RTC to pay the
full monthly SERP payments to those persons who are entitled to
receive payments from the proceeds of the letter of credit until
those Proceeds are exhausted, or until a further order from a
Canadian Court.
BCFPI proposes that Active Employees and Deferred Vested
Employees will have the value of their accrued benefits under the
SERPs secured by the amount held by RTC and that no other person
is entitled to have the value of the Benefits nor to receive any
monthly SERP payment.
BCFPI asks Mr. Justice Gascon to declare that RTC will be
construed and have the same effect as if RTC relied and acted
upon the written instructions of BCFPI.
About AbitibiBowater
AbitibiBowater produces a wide range of newsprint, commercial
printing papers, market pulp and wood products. It is the eighth
largest publicly traded pulp and paper manufacturer in the world.
AbitibiBowater owns or operates 22 pulp and paper facilities and
26 wood products facilities located in the United States, Canada
and South Korea. Marketing its products in more than 90
countries, the Company is also among the world's largest recyclers
of old newspapers and magazines, and has third-party certified
100% of its managed woodlands to sustainable forest management
standards. AbitibiBowater's shares trade over-the-counter on the
Pink Sheets and on the OTC Bulletin Board under the stock symbol
ABWTQ.
The Company and several of its affiliates filed for protection
under Chapter 11 of the U.S. Bankruptcy Code on April 16, 2009
(Bankr. D. Del. Lead Case No. 09-11296). Judge Kevin J. Carey
presides over the case. The Company and its Canadian affiliates
commenced parallel restructuring proceedings under the Companies'
Creditors Arrangement Act before the Quebec Superior Court
Commercial Division the next day. Alex F. Morrison at Ernst &
Young, Inc., was appointed CCAA monitor.
Paul, Weiss, Rifkind, Wharton & Garrison LLP, serves as the
Debtors' U.S. bankruptcy counsel. Stikeman Elliot LLP, acts as
the Debtors' CCAA counsel. Young, Conaway, Stargatt & Taylor, in
Wilmington, Delaware, serves as the Debtors' co-counsel, while
Troutman Sanders LLP in New York, serves as the Debtors' conflicts
counsel in the Chapter 11 proceedings. The Debtors' financial
advisors are Advisory Services LP, and their noticing and claims
agent is Epiq Bankruptcy Solutions LLC. The CCAA Monitor's
counsel is Thornton, Grout & Finnigan LLP, in Toronto, Ontario.
Abitibi-Consolidated Inc. and various Canadian subsidiaries filed
for protection under Chapter 15 of the U.S. Bankruptcy Code on
April 17, 2009 (Bankr. D. Del. 09-11348). Judge Carey also
handles the Chapter 15 case. Pauline K. Morgan, Esq., and Sean T.
Greecher, Esq., at Young, Conaway, Stargatt & Taylor, in
Wilmington, represent the Chapter 15 Debtors.
As of Sept. 30, 2008, the Company had $9,937,000,000 in total
assets and $8,783,000,000 in total debts.
Bankruptcy Creditors' Service, Inc., publishes AbitibiBowater
Bankruptcy News. The newsletter provides gavel-to-gavel coverage
of the Chapter 11 proceedings and parallel proceedings under the
Companies' Creditors Arrangement Act in Canada undertaken by
Abitibibowater Inc. and its various affiliates.
(http://bankrupt.com/newsstand/or 215/945-7000).
ABITIBIBOWATER INC: E&Y Submits 6th Monitor's Report
----------------------------------------------------
Ernst & Young, Inc., in its capacity as information officer,
apprised Mr. Justice Gascon of updates with respect to the
Chapter 11 proceedings of the CCAA Applicants in its Sixth
Information Officer Report.
E&Y disclosed that, among other things, the U.S. Bankruptcy Court
for the District of Delaware:
* approved the sixth amendment of the Senior Secured
Superpriority Debtor-in-Possession Credit Agreement dated
April 21, 2009, as amended, among AbitibiBowater, Inc.,
Bowater Inc., and Bowater Canada Forest Products, Inc., and
each of the lenders party, extending the maturity of the
Bowater DIP Loan;
* authorized of Bowater Inc. to sell timberlands located in
Rhea County, Tennessee, for approximately $1,096,700
pursuant to a real property contract with Rachel Pruett as
purchaser;
* authorized and approved (i) Alabama River Newsprint
Company's sale, by and through its general partner, Abitibi-
Consolidated Alabama Corporation, to Alabama River Pulp
Company, Inc. and Alabama Pine Pulp Company of certain, of
certain property and equipment located in Claiborne, Alabama
free and clear of liens, claims, encumbrances and other
interests; (ii) the corresponding sale agreement; (iii) the
assumption of a related amended services agreement; and (iv)
ARN's conveyance of real property and ARN's entry into a
Certain lease amendment with The Industrial Development
Board of Monroe County, Alabama;
* established April 7, 2010 as the final date for workers who
were employees of the U.S. Debtors as of the Petition Date
to file proofs of claims in the Chapter 11 cases; and
* approved the U.S. Debtors' request for dismissal of the
Chapter 11 case of ABH LLC 2, a special purpose vehicle, was
formed in connection with a series of transactions designed
to address a potential US$55.25 million withholding tax
liability through the payment of certain intercompany debt,
as approved by the Canadian Court in the CCAA Proceedings on
December 1, 2009. Pursuant to the Repayment Steps, ABH LLC
2 no longer exists as an independent legal entity and the
U.S. Debtors moved to dismiss its Chapter 11 case.
The Information Officer has been advised that the U.S. Debtors
continue to file notices of settlement of ordinary course claims
and notices of the assumption, assignment and/or rejection of
leases and executory contracts in the usual manner.
Administrative expense claims, fee applications and motions for
relief from the stay continue to be resolved in the usual manner.
A full-text copy of the Sixth Information Officer's Report is
available for free at:
http://bankrupt.com/misc/CCAA_6thInfoOfcrReport.pdf
About AbitibiBowater
AbitibiBowater produces a wide range of newsprint, commercial
printing papers, market pulp and wood products. It is the eighth
largest publicly traded pulp and paper manufacturer in the world.
AbitibiBowater owns or operates 22 pulp and paper facilities and
26 wood products facilities located in the United States, Canada
and South Korea. Marketing its products in more than 90
countries, the Company is also among the world's largest recyclers
of old newspapers and magazines, and has third-party certified
100% of its managed woodlands to sustainable forest management
standards. AbitibiBowater's shares trade over-the-counter on the
Pink Sheets and on the OTC Bulletin Board under the stock symbol
ABWTQ.
The Company and several of its affiliates filed for protection
under Chapter 11 of the U.S. Bankruptcy Code on April 16, 2009
(Bankr. D. Del. Lead Case No. 09-11296). Judge Kevin J. Carey
presides over the case. The Company and its Canadian affiliates
commenced parallel restructuring proceedings under the Companies'
Creditors Arrangement Act before the Quebec Superior Court
Commercial Division the next day. Alex F. Morrison at Ernst &
Young, Inc., was appointed CCAA monitor.
Paul, Weiss, Rifkind, Wharton & Garrison LLP, serves as the
Debtors' U.S. bankruptcy counsel. Stikeman Elliot LLP, acts as
the Debtors' CCAA counsel. Young, Conaway, Stargatt & Taylor, in
Wilmington, Delaware, serves as the Debtors' co-counsel, while
Troutman Sanders LLP in New York, serves as the Debtors' conflicts
counsel in the Chapter 11 proceedings. The Debtors' financial
advisors are Advisory Services LP, and their noticing and claims
agent is Epiq Bankruptcy Solutions LLC. The CCAA Monitor's
counsel is Thornton, Grout & Finnigan LLP, in Toronto, Ontario.
Abitibi-Consolidated Inc. and various Canadian subsidiaries filed
for protection under Chapter 15 of the U.S. Bankruptcy Code on
April 17, 2009 (Bankr. D. Del. 09-11348). Judge Carey also
handles the Chapter 15 case. Pauline K. Morgan, Esq., and Sean T.
Greecher, Esq., at Young, Conaway, Stargatt & Taylor, in
Wilmington, represent the Chapter 15 Debtors.
As of Sept. 30, 2008, the Company had $9,937,000,000 in total
assets and $8,783,000,000 in total debts.
Bankruptcy Creditors' Service, Inc., publishes AbitibiBowater
Bankruptcy News. The newsletter provides gavel-to-gavel coverage
of the Chapter 11 proceedings and parallel proceedings under the
Companies' Creditors Arrangement Act in Canada undertaken by
Abitibibowater Inc. and its various affiliates.
(http://bankrupt.com/newsstand/or 215/945-7000).
ABITIBIBOWATER INC: Receivership Order on 4513451 Canada Entered
----------------------------------------------------------------
U.S. Bankruptcy Judge Kevin Carey previously authorized and
approved the execution of Abitibi-Consolidated Inc. and Abitibi
Consolidated Company of Canada, as vendors, of an indenture with
4513451 Canada Inc., as purchaser, and the completion of all the
transactions contemplated under the Indenture.
In this regard, the Canadian Court appointed Ernst & Young Inc.
as receiver, without security, of all of the assets, undertakings
and properties of 4513541 Canada Inc., including all proceeds.
The Receiver is empowered and authorized, but not obligated:
(a) to take possession of, and exercise control over, the
Property and any and all proceeds,' receipts and
disbursements arising out of or from the Property;
(b) to receive, preserve, and protect of the Property, or any
part or parts, including, but not limited to, the changing
of locks and security codes, the relocating of Property to
safeguard it, the engaging of independent security
personnel, the taking of physical inventories and the
placement of insurance coverage as may be necessary or
desirable;
(c) to engage consultants, appraisers, agents, experts,
auditors, accountants, managers, counsel and other persons
from time to time and on whatever basis, including on a
temporary basis, to assist with the exercise of the
Receiver's powers and duties
(d) to receive and collect all monies and accounts now owed or
owing to the Debtors and to exercise all remedies of the
Debtors in collecting the monies;
(e) to settle, extend or compromise any indebtedness owing to
the Debtors;
(f) to execute, assign, issue and endorse documents of
whatever nature in respect of any of the Property, whether
in the Receiver's name or in the name and on behalf of the
Debtors;
(g) to undertake environmental assessments of the Property and
operations of the Debtor and to enter into discussions and
negotiations with the relevant environmental authorities
in connection with the environmental remediation or
decontamination of any Property;
(h) to initiate, prosecute and continue the prosecution of any
and all proceedings and to defend all proceedings
instituted with respect to the Debtors, the Property or
the Receiver, and to settle or compromise any such
proceedings;
(i) to market any or all of the Property, including
advertising and soliciting offers with respect to the
Property and negotiating terms and conditions of sale as
the Receiver in its discretion may deem appropriate;
(j) to apply for any vesting order or other orders necessary
to convey the Property;
(k) to report to, meet with and discuss with affected persons
as the Receiver deems appropriate on all matters relating
to the Property and the receivership, and to share
information;
(l) to register a copy of the Canadian Court Order and any
other Orders in with respect to the Property against title
to any of the Property;
(m) to apply for any permits, licences, approvals or
permissions as may be required by any governmental
authority and any renewals for and on behalf of and, if
thought desirable by the Receiver, in the name of the
Debtors; and
(n) to exercise any shareholder, partnership, joint venture or
other rights which the Debtors may have.
A full-text copy of the Canadian Court's Receivership Order as to
4513541 Canada Inc. is available for free at:
http://bankrupt.com/misc/CCAA_4513541ReceivershipORD.pdf
About AbitibiBowater
AbitibiBowater produces a wide range of newsprint, commercial
printing papers, market pulp and wood products. It is the eighth
largest publicly traded pulp and paper manufacturer in the world.
AbitibiBowater owns or operates 22 pulp and paper facilities and
26 wood products facilities located in the United States, Canada
and South Korea. Marketing its products in more than 90
countries, the Company is also among the world's largest recyclers
of old newspapers and magazines, and has third-party certified
100% of its managed woodlands to sustainable forest management
standards. AbitibiBowater's shares trade over-the-counter on the
Pink Sheets and on the OTC Bulletin Board under the stock symbol
ABWTQ.
The Company and several of its affiliates filed for protection
under Chapter 11 of the U.S. Bankruptcy Code on April 16, 2009
(Bankr. D. Del. Lead Case No. 09-11296). Judge Kevin J. Carey
presides over the case. The Company and its Canadian affiliates
commenced parallel restructuring proceedings under the Companies'
Creditors Arrangement Act before the Quebec Superior Court
Commercial Division the next day. Alex F. Morrison at Ernst &
Young, Inc., was appointed CCAA monitor.
Paul, Weiss, Rifkind, Wharton & Garrison LLP, serves as the
Debtors' U.S. bankruptcy counsel. Stikeman Elliot LLP, acts as
the Debtors' CCAA counsel. Young, Conaway, Stargatt & Taylor, in
Wilmington, Delaware, serves as the Debtors' co-counsel, while
Troutman Sanders LLP in New York, serves as the Debtors' conflicts
counsel in the Chapter 11 proceedings. The Debtors' financial
advisors are Advisory Services LP, and their noticing and claims
agent is Epiq Bankruptcy Solutions LLC. The CCAA Monitor's
counsel is Thornton, Grout & Finnigan LLP, in Toronto, Ontario.
Abitibi-Consolidated Inc. and various Canadian subsidiaries filed
for protection under Chapter 15 of the U.S. Bankruptcy Code on
April 17, 2009 (Bankr. D. Del. 09-11348). Judge Carey also
handles the Chapter 15 case. Pauline K. Morgan, Esq., and Sean T.
Greecher, Esq., at Young, Conaway, Stargatt & Taylor, in
Wilmington, represent the Chapter 15 Debtors.
As of Sept. 30, 2008, the Company had $9,937,000,000 in total
assets and $8,783,000,000 in total debts.
Bankruptcy Creditors' Service, Inc., publishes AbitibiBowater
Bankruptcy News. The newsletter provides gavel-to-gavel coverage
of the Chapter 11 proceedings and parallel proceedings under the
Companies' Creditors Arrangement Act in Canada undertaken by
Abitibibowater Inc. and its various affiliates.
(http://bankrupt.com/newsstand/or 215/945-7000).
ACM-TEXAS INC: Debtor Recovers on Promissory Estoppel Theory
------------------------------------------------------------
Under Texas law, WestLaw reports, the Chapter 7 debtor-lessee was
entitled to reliance damages of $75,000 from a mining company
pursuant to the doctrine of promissory estoppel, a Texas
bankruptcy court has ruled. The parties' letter agreement,
combined with the company's subsequent behavior in continuing
negotiations toward a mineral rights agreement and allowing the
debtor to mine and build at the site without disturbance or
protest, indicated a promise that the company and the debtor would
enter into a long-term contractual relationship in which the
debtor would be allowed to mine and mill at the site and sell the
resulting materials in specified markets that did not compete with
the company. The company's conduct in allowing the processing
mill to be built after having been informed of its construction,
despite the debtor's lack of mineral rights, rendered the debtor's
reliance on the promise reasonable. The debtor, which built the
mill and spent years mining minerals to which it had no legal
right, relied on the promise to its detriment. Finally, a letter
from the debtor to the company dated from the time of the mill's
construction established the mill's cost. In re ACM-Tex., Inc., -
-- B.R. ----, 2010 WL 1741101 (Bankr. W.D. Tex.).
Van Horn, Texas-based ACM-Texas, LLC, filed for Chapter 11
protection (Bankr. W. D. Texas Case No. 08-70200) on Oct. 10,
2008. Alvaro Martinez, Jr., Esq., in Midland, Tex., represents
the Debtor. The Debtor disclosed $19 million in assets and
$2 million in liabilities at the time of the chapter 11 filing.
AFLRED VILLALOBOS: Files for Chapter 11 Bankruptcy in Nevada
------------------------------------------------------------
Dale Kasler at The Sacramento Bee reports that former CalPERS
board member Alfred Villalobos filed for bankruptcy under Chapter
11 in in Nevada following a lawsuit filed by California attorney
General Jerry Brown arising from Mr. Villalobos' alleged attempts
to bribe CalPERS officials in an effort to steer investment
dollars to his clients. Mr. Villalobos says he owes $1.4 million
to Caesars Palace in Las Vegas and $2 million to Harrah's in Reno.
ANAVERDE LLC: Judge Signs Order Confirming Plan
-----------------------------------------------
Anaverde LLC secured approval of the Chapter 11 plan when the
bankruptcy judge in Delaware signed a confirmation order on
June 14, Bill Rochelle at Bloomberg News reported.
According to Bloomberg News, the Plan allows existing owners to
buy back the business. There were no competing bids submitted at
auction. The Plan gives the secured lender, Cadim Note Inc.,
roughly $11.8 million plus 25% of proceeds above $26 million if
the property is resold within two years. The lender is owed $63.9
million. The lender carved out $350,000 cash for unsecured
creditors.
Under the Plan:
-- CADIM, the lone holder of secured claim, has agreed to
accept payment of $10,124,000 from the proceeds from the
sale, plus other amounts, for a recovery of 15.8% to 16.4%.
-- Holders of DIP credit facility claims in class 2 will
recover 100% of their claims. Holders of priority claims
will also recover 100 cents on the dollar.
-- Holders of general unsecured claims in class 5 will recover
21% to 100%. Holders of convenience class claims are
estimated to recover 50%.
-- Holders of subordinated claims, intercompany claims, and
equity interests won't receive any distributions.
San Francisco, California-based Anaverde LLC filed for Chapter 11
bankruptcy protection on January 15, 2010 (Bankr. D. Del. Case No.
10-10113). The Debtor is represented by Christopher Simon, Esq.,
at Cross & Simon, LLC. The Company listed $10,000,001 to
$50,000,000 in assets and $50,000,001 to $100,000,000 in
liabilities.
ASARCO LLC: US Seeks to Block Asarco Bid for Financial Papers
-------------------------------------------------------------
Bankruptcy Law360 reports that the federal government is trying to
block subpoenas served on one of its financial consulting firms by
Asarco LLC's bankruptcy plan administrator, who is disputing some
$4 million in U.S. Department of Justice attorneys' fees and
expenses the government is trying to recoup from its work on the
fallen mining giant's bankruptcy and reorganization.
Subpoenas served on Todd Patnode and his turn-around firm Bridge
Associates LLC -- the government's nontestifying consulting
financial experts for plan-related matters during Asarco's
bankruptcy -- violate existing scheduling orders, according to
Law360.
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)
ATLANTIC BROADBAND: Moody's Upgrades Corp. Family Rating to 'B1'
----------------------------------------------------------------
Moody's Investors Service upgraded Atlantic Broadband Finance,
LLC's Corporate Family Rating and Probability-of-Default Rating,
each to B1 from B2. Additionally, Moody's upgraded the company's
senior secured credit facilities (including a $40 million revolver
due 2012, a $118.8 million term loan due September 2011 and a
$325 million term loan due June 2013), each to Ba3 from B1, and
its 9-3/8% Senior Subordinated Notes due 2014 to B3 from Caa1.
Atlantic Broadband's speculative grade liquidity rating remains
unchanged at SGL-2. The rating outlook is stable.
The upgrades are driven by Atlantic Broadband's strong operating
performance, growing free cash flow generation and correspondingly
improved credit profile, notably including a reduction in
financial leverage to the sub-5x metric previously established by
Moody's (4.7x for the twelve months ended March 31, 2010).
Moreover, lower absolute debt levels following requisite term loan
amortization payments and excess cash flow recapture, along with
mid-single digit or better revenue and EBITDA growth, driven by
higher video ARPU and a combination of increasing high-speed data
and telephone penetration rates, should enable the company to
further reduce leverage and grow free cash flow through 2011.
Finally, historical rating constraints related to Atlantic
Broadband's propensity for shareholder distributions have been
alleviated as the company reached its maximum level of permitted
dividend distributions as governed by its bank credit facility in
the first quarter of 2010.
Notwithstanding the upgrades, Moody's noted that Atlantic
Broadband's liquidity profile could become pressured over the
forward rating horizon as free cash flow generation and cash-on-
hand are not expected to adequately cover increasing levels of
mandatory debt amortization in 2011, and will likely require the
company to rely on its $40 million revolving credit facility
(undrawn as of March 31, 2010) to satisfy the shortfall. While
Moody's currently project that the company should generate
sufficient free cash flow in the fourth quarter of 2011 to repay
interim drawn revolver borrowings prior to maturity (in March of
2012), the level of cushion is relatively modest. If it becomes
increasingly apparent that the company will not be able to fund
the repayment of its revolver in the latter half of 2011 with
internally generated free cash flow and no steps have been taken
to address liquidity, Atlantic Broadband's speculative grade
liquidity rating would likely be lowered.
Moody's has taken these rating actions:
* Issuer -- Atlantic Broadband Finance, LLC
* Corporate Family Rating -- Upgraded to B1 from B2
* Probability-of-Default Rating -- Upgraded to B1 from B2
* Revolving Credit Facility due 2012 -- Upgraded to Ba3 (LGD3,
36%) from B1 (LGD3, 38%)
* Term Loan Facility due September 2011 -- Upgraded to Ba3 (LGD3,
36%) from B1 (LGD3, 38%)
* Term Loan Facility due September 2013 -- Upgraded to Ba3 (LGD3,
36%) from B1 (LGD3, 38%)
* 9 3/8% Senior Subordinated Notes due January 2014 -- Upgraded to
B3 (LGD5, 88%) from Caa1 (LGD5, 89%)
* Speculative Grade Liquidity Rating -- Affirmed SGL-2
The B1 CFR reflects the company's limited scale (with revenue of
$306 million for the twelve month period ended March 31, 2010) and
moderately high debt-to-EBITDA leverage, as well as expectations
of heightened in-market competition for customers. These risks
are mitigated by the company's historically strong operating
performance, the relative stability and high perceived value
associated with its core pay television and telecommunications
business lines, and constraints imposed by existing debt
agreements with respect to the now precluded ability to fund
shareholder distributions to financial sponsors, which should
inure to the benefit of creditors. The rating contemplates
margins will be sustained in the low-40% range and that free cash
flow as a percentage of debt will increase over the intermediate
term.
Moody's most recent rating action for Atlantic Broadband was on
June 15, 2009, when ratings were assigned to the company's
extended revolver and term loan facility. The company's
speculative grade liquidity rating was also upgraded to SGL-2 from
SGL-3 at that time.
Headquartered in Quincy, Massachusetts, Atlantic Broadband Finance
LLC is a multiple system operator serving approximately 275,000
cable subscribers across Western Pennsylvania, Maryland, Delaware,
Miami Beach, and South Carolina. The company generated
approximately $306 million in revenue for the LTM period ended
March 31, 2010.
AVALON CARRIAGE: Case Summary & 13 Largest Unsecured Creditors
--------------------------------------------------------------
Debtor: Avalon Carriage Services, Inc.
dba St. Augustine Transfer Company
3535 County Road 214
St. Augustine, FL 32092
Bankruptcy Case No.: 10-05094
Chapter 11 Petition Date: June 11, 2010
Court: United States Bankruptcy Court
Middle District of Florida (Jacksonville)
Debtor's Counsel: Nina M. LaFleur, Esq.
P.O. Box 861128
St. Augustine, FL 32086-1128
Tel: (904) 797-7995
Fax: (904) 797-7996
E-mail: nina@lafleurlaw.com
Scheduled Assets: $2,923,002
Scheduled Debts: $1,325,473
A list of the Company's 13 largest unsecured creditors
filed together with the petition is available for free
at http://bankrupt.com/misc/flmb10-05094.pdf
The petition was signed by R. Murphy McDaniel, the Company's
president.
BEAR ISLAND: Creditors Still Investigate Secured Loans
------------------------------------------------------
Bill Rochelle at Bloomberg News reports that the Official
Committee of Unsecured Creditors for Bear Island Paper Co. LLC is
asking the U.S. Bankruptcy Court to extend by 25 days, until July
9, its deadline to complete an investigation of the validity of
pre-bankruptcy secured claims. A hearing is scheduled on
June 22.
Bloomberg notes that the loan for the Chapter 11 case has a
deadline that requires signing up a so-called plan-support
agreement by June 15. Absent a plan, the financing requires
selling the business. Bear Island reported there are several
prospective buyers.
About White Birch and Bear Island
White Birch Paper Company is the second-largest newsprint producer
in North America. As of December 31, 2009, the WB Group held a
12% share of the North American newsprint market and employed
roughly 1,300 individuals (the majority of which reside in
Canada). Additionally, for the 12 months ended December 31, 2009,
the WB Group maintained an annual production capacity of roughly
1.3 million metric tons of newsprint and directory paper, up to
50% of which consists of recycled content, and achieved net sales
of roughly $667 million.
Bear Island is the U.S. subsidiary of White Birch.
Bear Island filed a voluntary petition for relief under Chapter 11
of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court for the
Eastern District of Virginia on February 24, 2010.
White Birch filed for bankruptcy protection under Canada's
Companies' Creditors Arrangement Act, before the Superior Court
for the Province of Quebec, Commercial Division, Judicial District
of Montreal, Canada. White Birch and five other affiliates --
F.F. Soucy Limited Partnership; F.F. Soucy, Inc. & Partners,
Limited Partnership; Papier Masson Ltee; Stadacona Limited
Partnership; and Stadacona General Partner, Inc. -- also sought
bankruptcy protection under Chapter 15 of the U.S. Bankruptcy
Code.
Jonathan L. Hauser, Esq., at Troutman Sanders LLP, in Virginia
Beach, Virginia; and Richard M. Cieri, Esq., Christopher J.
Marcus, Esq., and Michael A. Cohen, Esq., at Kirkland & Ellis LLP,
in New York, serve as counsel to White Birch, as Foreign
Representative. Kirkland & Ellis and Troutman Sanders also serve
as Chapter 11 counsel to Bear Island. AlixPartnes LLP serves as
financial/restructuring advisor to Bear Island, and Lazard Freres
& Co., serves as investment banker. Chief Judge Douglas O. Tice,
Jr., handles the Chapter 11 and Chapter 15 cases.
BI-LO LLC: GE Capital Agents $150MM in Exit Financing for Firm
--------------------------------------------------------------
GE Capital, Restructuring Finance agented a $150 million plan of
reorganization credit facility to BI-LO LLC. The loan supports
BI-LO's exit from bankruptcy and ongoing working capital needs. GE
Capital Markets served as sole lead arranger.
Founded in 1964, BI-LO is a privately held company based in
Mauldin, SC. The company operates approximately 200 supermarkets
in South Carolina, North Carolina, Georgia and Tennessee.
"GE understood our business objectives and made a significant
financial commitment to help move us forward," said Brian Carney,
chief financial officer for BI-LO. "We value having a lender that
works closely with us in both good and challenging times."
"The combination of our retail and restructuring expertise means
smarter liquidity solutions for customers through more options and
greater flexibility as they complete financial restructurings,"
said Tim Tobin, managing director of retail restructuring for GE
Capital, Restructuring Finance.
About GE Capital
GE Capital, Restructuring Finance is a leading provider of senior
secured loans to distressed companies supporting Chapter 11
filings, plan-of-reorganizations and out-of-court restructurings.
About BI-LO LLC
Headquartered in Mauldin, South Carolina, BI-LO LLC operates 214
supermarkets in South Carolina, North Carolina, Georgia and
Tennessee, and employs approximately 15,500 people.
Dallas-based Lone Star Funds bought the business in 2005 from
Koninklijke Ahold NV, the Dutch supermarket operator. Lone Star
also owns Bruno's Supermarkets LLC, a chain of 66 stores
that filed under Chapter 11 in February in Birmingham, Alabama.
BI-LO and its affiliates filed for Chapter 11 bankruptcy
protection on March 23, 2009 (Bankr. D. S.C. Case No. 09-02140).
George B. Cauthen, Esq., Frank B. Knowlton, Esq., at Nelson
Mullins Riley & Scarborough, L.L.P; Josiah M. Daniel, III, Esq.,
Katherine D. Grissel, Esq., at Vinson & Elkins L.L.P. in Dallas;
and Dov Kleiner, Esq., Alexandra S. Kelly, Esq., at Vinson &
Elkins L.L.P., in New York, serve as counsel. Kurtzman Carson
Consultants LLC serves as notice and claims agent. BI-LO listed
between $100 million and $500 million each in assets and debts.
BLOCKBUSTER INC: Looks at Bankruptcy Filing, Other Options
----------------------------------------------------------
Maria Halkias at The Dallas Morning News reported June 15 that
Blockbuster Inc. chief executive Jim Keyes has confirmed that he
is looking at a number of options for the company, including
arranging short-term financing should the company file for
bankruptcy.
According to the report, Mr. Keyes still insists that doesn't mean
bankruptcy is its mostly likely path. "As far back as a year and
a half ago, we've said we've been looking at all alternatives,"
Keyes said in an interview. "Our objective is to satisfy all our
stakeholders in an out-of-court settlement."
News reports said late last week that Blockbuster is seeking
financing to help it operate in bankruptcy if it can't renegotiate
its $930 million in debt.
Blockbuster has warned since last year in regulatory filings that
bankruptcy is a possibility.
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's quarterly report on Form 10-Q showed 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.
BP PLC: Agrees to Earmark $20 Billion for Oil Spill Claims
----------------------------------------------------------
Top executives at BP Plc were summoned to the White House
Wednesday morning for a meeting with U.S. President Barrack Obama
to discuss the president's demand that BP set aside funds in an
independently administered escrow account to pay claims stemming
from the Gulf of Mexico oil spill.
Jonathan Weisman, Jared A. Favole and Monica Langley at The Wall
Street Journal report that President Obama, after emerging from
the meeting, said BP will put $20 billion into an independently
administered fund to help pay for claims as a result of the Gulf
oil disaster.
The Journal also relates BP Chairman Carl-Henric Svanberg said
after the meeting that the company wouldn't pay further dividends
this year and will look after the people of the Gulf coast. He
said he wanted to apologize to those affected by an oil disaster
he acknowledged should have never happened. He said the company
would do its own probe of what caused the catastrophe.
Helene Cooper and Jackie Calmes at The New York Times earlier
reported that lawyers at the White House and for BP have been
negotiating for days about an escrow account. While Mr. Obama has
not put a figure on the account, Senate Democrats have called for
$20 billion, according to the New York Times.
According to the Journal, Mr. Obama called the meeting
"constructive" and said BP voluntarily agreed to set aside an
additional $100 million for workers who lost their jobs as a
result of a deep-water drilling moratorium.
The Journal further relates Mr. Obama said the $20 billion is not
a cap, and added that BP will pay the full costs of the cleanup
including environmental damage.
According to the Journal, the fund would be overseen by Kenneth
Feinberg. Mr. Feinberg is currently the U.S. government's pay
czar, a role in which he butted heads with financial executives
over their pay packages under the financial-industry rescue plan
in 2009. He also oversaw the federal government's compensation
fund for victims of the Sept. 11, 2001, terrorist attacks.
According to the Troubled Company Reporter on June 11, 2010, The
Wall Street Journal's Amy Schatz and Guy Chazan reported that
White House officials on Sunday said they wanted BP to put
"substantial" funds into an escrow account to cover claims by Gulf
Coast businesses and residents affected by the oil spill.
BP said on June 14 the cost of the response to date amounts to
approximately $1.6 billion, including the cost of the spill
response, containment, relief well drilling, grants to the Gulf
states, claims paid, and federal costs. This includes new grants
of $25 million each to the states of Florida, Alabama and
Mississippi and the first $60 million in funds for the Louisiana
barrier islands construction project. BP said it is too early to
quantify other potential costs and liabilities associated with the
incident.
According Dow Jones Newswires' Selina Williams, one analyst
estimated Friday that the ultimate figure would be between
$3 billion and $6 billion.
According to BP, more than 51,000 claims have been submitted to
date, and more than 26,500 payments have been made, totaling over
$62 million.
The WSJ report drew comparisons of the BP fund with those of trust
funds set up with court approval by Johns Manville Corp. and later
other companies with asbestos liabilities. The report says those
asbestos trusts now oversee about $20 billion in assets, a sum
that has nearly tripled since 2005, consultants say.
Chapter 11 or Receivership Seen
As reported by the Troubled Company Reporter on June 10, 2010,
Tennille Tracy at Dow Jones Newswires said energy specialist Matt
Simmons, founder and chairman emeritus of Simmons & Co., has told
Fortune magazine that BP Plc has "about a month before they
declare Chapter 11."
According to the TCR, Jeff Plungis and Christopher Condon at
Bloomberg's Businessweek reported that Representative Steve Cohen,
a Tennessee Democrat, said because BP is likely to end up in
bankruptcy, the Obama administration should consider placing the
company in receivership to preserve company assets. "The
president could put it in receivership to protect the people," Mr.
Cohen said.
The TCR also cited Businessweek, which said more than 40 U.S.
lawmakers on June 9 called for BP to suspend its dividend, stop
its advertising and spend the money instead cleaning up its oil
spill in the Gulf of Mexico. Businessweek said a dividend
moratorium would hit BP shareholders led by BlackRock Inc. and
Legal & General Group Plc. According to Bloomberg data drawn from
regulatory filings, New York-based BlackRock was the biggest
holder of BP shares, with 5.92% as of December 31, 2009.
Bloomberg said Legal & General Group, the U.K. insurer and money
manager, holds 4% of the shares as of May 4.
About BP Plc
BP Plc -- http://www.bp.com/-- is one of the world's largest
energy companies, providing its customers with fuel for
transportation, energy for heat and light, retail services and
petrochemicals products for everyday items.
Bloomberg's Businessweek notes BP represents 5.6% of the FTSE 100
Index, the second biggest weighting of the top U.K.-listed
companies behind London-based bank HSBC Holdings Plc. BP also
represents the biggest portion of the FTSE 350 Oil & Gas Producers
Index at 31%, and the MSCI EAFE/Energy Index at 16%.
BRIGHAM EXPLORATION: Moody's Raises Corp. Family Rating to 'Caa1'
-----------------------------------------------------------------
Moody's Investors Service upgraded Brigham Exploration Company's
Corporate Family Rating to Caa1 from Caa2 and the Probability of
Default Rating to Caa1 from Caa2. Moody's also upgraded Brigham's
$160 million senior unsecured notes due 2014 to Caa2 from Caa3 and
its Speculative Grade Liquidity rating to SGL-1 from SGL-2. The
rating outlook is positive.
The rating upgrade and positive outlook reflects Brigham's
property portfolio transformation, strong expected production
trends, strong liquidity and financial flexibility after issuing a
cumulative $576 million in equity since May 2009 to fund
accelerated drilling of the firm's promising properties in the
Williston Basin of North Dakota and Montana where it holds 305,400
net acres in the Bakken/Three Forks oil shale play. The company
believes 2010 production will rise over 40% from 2009 levels.
Nevertheless, while Brigham's recent results and 2010-11 drilling
program are positive and provide cash flow visibility, the company
remains very small measured by production and proven reserves and
future growth and full-cycle reinvestment costs are fairly
undiversified, being largely reliant on Bakken/Three Forks. The
company's year-end 2009 proven developed reserves declined from
2008 levels. However, large proven undeveloped reserve bookings,
which require heavy capital spending and face execution risk, did
help reduce finding and development costs. By year-end 2010,
production rates relative to capital invested and finding and
development costs will better assess the capital intensity of
reserve replacement and production growth.
In April 2010, Brigham completed a $290 million equity offering
and announced the acceleration of its 2010 and 2011 drilling
programs. The company will double its rig count in the Williston
Basin from four to eight rigs by early 2011 (5 rigs running
currently), and anticipates its annual drilling rate to be
approximately 80 gross wells a year. Total 2010 capex is expected
to be $294 million, up from its original budget of under
$200 million. The expanded drilling program, while concentrated
in the Williston Basin, significantly reduces individual new well
risk and well sequencing in Brigham's efforts to grow production
and replace reserves. So far this year, Brigham has completed 14
wells, with an average initial production rate of over 3,000
boe/d.
The positive outlook reflects Brigham's improved liquidity
profile, the increasing proportion of liquids production,
comprising 66% of total production during the first quarter of
2010 and up 24% volumetrically over fourth quarter 2009, and the
expectation that Brigham's accelerated drilling program results
will translate into sustainable production and reserve growth.
Leverage levels, as measured by its reserve base and production
levels, constrain the rating at the Caa1 level. While benefiting
from Brigham's debt reduction in the fourth quarter of 2009 and a
rising production trend, leverage remains elevated. Debt to
average daily production was over $32,000 per boe in the first
quarter of 2010, debt to proven developed reserves was $17.05 per
boe and debt plus future development costs to total proven reserve
was slightly lower at $15.92 per boe. While all three leverage
metrics remain in the Caa range, rapid production growth this year
will reduce leverage on production and leverage on reserves should
decline significantly.
Further positive rating actions could await assessment of year-end
2010 reserve addition metrics and costs as well as continued
sustained production growth at suitable capital costs. Higher
ratings could result from substantial growth in proven developed
reserves and reduced leverage on reserves and production. A
negative rating action could occur if Brigham's finding and
development costs were unsustainably high or production does not
adequately respond proportionally to continued heavy capital
spending.
The last rating action on Brigham was October 29, 2009, at which
time Brigham's CFR, PDR, and unsecured note ratings were upgraded
to Caa2, Caa2, and Caa3, respectively.
Brigham Exploration Company is headquartered in Austin, Texas.
CANWEST GLOBAL: To Call Meetings of Creditors for July 19
---------------------------------------------------------
Canwest Global Communications Corp. disclosed that it, Canwest
Media Inc. and certain of CMI's subsidiaries are seeking an order
of the Ontario Superior Court of Justice to call meetings of
creditors to be held on July 19, 2010.
The purpose of the meetings is to consider and vote on a
consolidated plan of compromise and arrangement pertaining to the
CMI Entities pursuant to the Companies' Creditors Arrangement Act.
The Plan provides for a recapitalization transaction involving the
CMI Entities, as contemplated by the previously announced
agreements with Shaw and members of the ad hoc committee of
holders of CMI's 8% senior subordinated notes.
The CMI Entities have served and filed with the Court copies of
the Plan and materials relating to the meetings of creditors. The
Court hearing to consider the CMI Entities' motion seeking an
order to call the meetings is scheduled for June 22, 2010.
The announcement relates only to Canwest's conventional and
specialty television broadcasting businesses. Canwest (Canada)
Inc., Canwest Limited Partnership and their affiliates (the "LP
Entities"), which operate the Company's newspaper and online-
publishing businesses, are the subject of a separate CCAA
restructuring process. The CMI Entities do not expect to receive
any distribution in connection with the CCAA restructuring of the
LP Entities.
About Canwest Global
Canwest Global Communications Corp. (TSX: CGS and CGS.A) --
http://www.canwest.com/-- an international media company, is
Canada's largest media company. In addition to owning the Global
Television Network, Canwest is Canada's largest publisher of
English language daily newspapers and owns, operates and holds
substantial interests in conventional television, out-of-home
advertising, specialty cable channels, web sites and radio
stations and networks in Canada, New Zealand, Australia, Turkey,
Indonesia, Singapore, the United Kingdom and the United States.
On October 6, 2009, Canwest Global, Canwest Media Inc., Canwest
Television Limited Partnership (including Global Television,
MovieTime, DejaView and Fox Sports World), The National Post
Company and certain subsidiaries voluntarily entered into, and
successfully obtained an Order from the Ontario Superior Court of
Justice (Commercial Division) commencing proceedings under the
Companies' Creditors Arrangement Act. The CMI Entities'
commencement of these proceedings was undertaken in furtherance of
a proposed recapitalization transaction that is supported by over
70% of holders of the 8% senior subordinated notes issued by CMI.
On the same day, FTI Consulting Canada Inc., the Court-appointed
Monitor in the CCAA proceedings, sought protection in the United
States Bankruptcy Court under Chapter 15 of the United States
Bankruptcy Code (Bankr. S.D.N.Y. Lead Case No. 09-15994) for
certain of the entities involved in Canwest's television business
that filed for protection under the CCAA, including Canwest,
Canwest Media Inc. and Canwest Global Broadcasting
Inc./Radiodiffusion Canwest Global Inc.
Judge Stuart M. Bernstein presides over the Chapter 15 cases.
Evan D. Flaschen, Esq., at Bracewell & Giuliani LLP, in Hartford,
Connecticut, serves as Chapter 15 Petitioner's counsel. The
Chapter 15 Debtors disclosed estimated assets of $500 million to
$1 billion and estimated debts of $50 million to $100 million.
In a regulatory filing with the U.S. Securities and Exchange
Commission, Canwest Media disclosed C$4,847,020,000 in total
assets and C$5,826,522,000 in total liabilities at May 31, 2009.
Bankruptcy Creditors' Service, Inc., publishes Canwest Bankruptcy
News. The newsletter tracks the CCAA proceedings and Chapter 15
proceedings undertaken by Canwest Global Communications Corp. and
its affiliates (http://bankrupt.com/newsstand/or 215/945-7000).
CALIFORNIA COASTAL: Obtains $182 Million Financing Commitment
-------------------------------------------------------------
California Coastal Communities, Inc., has obtained a financing
commitment from an investor to provide $182 million of new debt
financing to replace the Company's existing secured debt
facilities. The commitment is subject to approval by the United
States Bankruptcy Court for the Central District of California,
and to the successful negotiation and execution of definitive loan
documents.
Chief Executive Officer Raymond J. Pacini commented, "We are very
pleased to have negotiated this commitment for new financing to
takeout our existing Brightwater debt. The new financing, if
approved by the Court, will provide a more certain exit from
bankruptcy without the risk of litigation. With the cloud of
bankruptcy being removed, we expect the pace of home sales at
Brightwater to improve. This financing will also provide
significant flexibility." Mr. Pacini commented further, "In
particular, the fact that the $100 million third lien will not
require any amortization will let us sell homes at a pace that
allows the Company to benefit from the inevitable recovery in
coastal home prices."
In connection with the commitment, the Company will amend its plan
of reorganization to provide for the repayment of the existing
indebtedness in cash upon the effective date of the plan. The
Chapter 11 Petitions, which were filed by the Company and certain
of its direct and indirect wholly-owned subsidiaries on
October 27, 2009, are being jointly administered under the caption
In re California Coastal Communities, Inc., Case No. 09-21712-TA.
The commitment provides (a) a new first lien position loan in the
principal amount of $40 million, maturing on March 31, 2013 and
bearing interest at an annual rate of Libor + 550 basis points,
with a Libor floor of 200 basis points; (b) a new second lien
position loan in the principal amount of $42 million, maturing on
December 31, 2013 and bearing interest at an annual rate of Libor
+ 950 basis points, with a Libor floor of 200 basis points; and
(c) a new third lien position loan in the principal amount of $100
million, maturing on December 31, 2015 without any amortization
required beforehand and bearing interest at an annual fixed rate
of 15% with 50% of such interest payable in cash and the remainder
accruing and added to the principal balance. After the first and
second lien position loans are repaid, the Company will have an
option to pay interest on the third lien position loan in cash at
an annual fixed rate of 12%. The third lien position loan will
also receive a revenue participation of 5% of the gross proceeds
from the sale of homes at Brightwater. There can be no assurance
that definitive loan documents will be executed pursuant to the
financing commitment.
The Company is a residential land development and homebuilding
company operating in Southern California. The Company's principal
subsidiaries are Hearthside Homes which is a homebuilding company,
and Signal Landmark which owns 110 acres on the Bolsa Chica mesa
where sales commenced in August 2007 at the 356-home Brightwater
community. Hearthside Homes has delivered over 2,300 homes to
families throughout Southern California since its formation in
1994.
About California Coastal
Irvine, Calif.-based California Coastal Communities, Inc.
-- http://www.californiacoastalcommunities.com/-- is a
residential land development and homebuilding company with
properties owned or controlled primarily in Orange County,
California, and also in Lancaster in Los Angeles county. The
Company's primary asset is a 356-home luxury coastal community
known as Brightwater in Huntington Beach, California.
California Coastal Communities, Inc. and certain of its direct and
indirect wholly-owned subsidiaries filed for Chapter 11 bankruptcy
protection on October 27, 2009 (Bankr. C.D. Calif. Case No. 09-
21712). Joshua M. Mester, Esq., who has an office in Los Angeles,
California, assists the Debtors in their restructuring efforts.
In their petition, the Debtors listed between $100 million and
$500 million in assets and between $100 million and $500 million
of debts.
On March 26, 2010, the Company filed a proposed disclosure
statement and proposed joint plan of reorganization with the
Bankruptcy Court, neither of which has been approved. The
proposed joint plan provides for the extension of the Revolving
Loan and the Term Loan to enable the Company to complete
construction and sale of the homes at its Brightwater project. A
majority of the Company's lenders are opposed to the plan as
filed.
At March 31, 2010, the Company's balance sheet showed
$249.0 million in assets, $218.0 million of liabilities, and
$31.0 million of stockholders' equity.
CHABAD-LUBAVITCH: Case Summary & 7 Largest Unsecured Creditors
--------------------------------------------------------------
Debtor: Chabad-Lubavitch of Boynton, Inc.
10655 El Clair Ranch Rd.
Boynton Beach, FL 33437
Bankruptcy Case No.: 10-26503
Chapter 11 Petition Date: June 11, 2010
Court: United States Bankruptcy Court
Southern District of Florida (West Palm Beach)
Judge: Erik P. Kimball
Debtor's Counsel: Joel M. Aresty, Esq.
13499 Biscayne Blvd #T-3
No. Miami, FL 33181
Tel: (305) 899-9876
Fax: (305) 723-7893
E-mail: aresty@mac.com
Scheduled Assets: $9,000,000
Scheduled Debts: $4,149,470
A list of the Company's 7 largest unsecured creditors
filed together with the petition is available for free
at http://bankrupt.com/misc/flsb10-26503.pdf
The petition was signed by Sholom Ciment, company's president.
Debtor-affiliate that filed separate Chapter 11 petition:
Petition
Debtor Case No. Date
------ -------- ----
Congregation Chabad-Lubavitch of
Greater Boynton Beach Inc. 10-26372 06/10/10
CHEMTURA CORP: Securities Litigation Deal Modified to $11.4MM
-------------------------------------------------------------
A Federal Court has ordered that notice be given to those who
purchased or otherwise acquired the securities of Crompton
Corporation during the period between October 26, 1998 and
October 8, 2002, inclusive, including without limitation all
persons and entities who purchased or otherwise acquired Crompton
securities pursuant to the merger between Crompton & Knowles
Corporation and Witco Corporation and who were damaged thereby.
A modification to the settlement of the class action lawsuit, In
re Crompton Corp. Securities Litigation, No. 3:03 CV 1293 (EBB)
pending in the United States District Court for the District of
Connecticut, that may affect you has been proposed. A proposed
settlement of this Lawsuit, in the amount of $20,650,000, was
publicized in early 2009. Before that settlement was finalized,
Chemtura Corporation ("Chemtura"), Crompton's successor, filed for
bankruptcy. As a result, this Lawsuit was stayed pursuant to 11
U.S.C. section 362(a) of the U.S. Bankruptcy Code, and, pursuant
to 11 U.S.C. sections 547 and 550, the contribution to the
original settlement made by the Company was returned to it.
Lead Plaintiffs have elected to modify the settlement of the
Lawsuit and have agreed to accept the $11,357,500 Defendants paid
or caused to be paid from Chemtura's Directors & Officers
Insurance as full and final satisfaction of this Lawsuit (the
"Settlement").
Accordingly, the Lawsuit has been certified as a class action and
a settlement for Eleven Million, Three Hundred and Fifty Seven
Thousand, Five Hundred Dollars ($11,357,500) has been proposed. A
hearing will be held before the Honorable Ellen Bree Burns in the
United States District Court for the District of Connecticut at
the Richard C. Lee United States Courthouse, 141 Church Street,
New Haven, Connecticut 06510, Courtroom Three, at 10:00 a.m., on
August 17, 2010. At the hearing it will be determined whether:
(1) the settlement class conditionally certified should be
certified for all purposes; (2) the proposed Settlement and Plan
of Allocation should be approved by the Court as fair, reasonable,
and adequate; and (3) Co-Lead Counsel's application for an award
of attorneys' fees and reimbursement of expenses should be
approved.
Members of the Class described above, will have their rights
affected and may be entitled to share in the settlement fund.
Those who have not yet received the full printed Notice of
Modified Proposed Class Action Settlement and Rescheduling of
Fairness Hearing Due to Bankruptcy and Proof of Claim and Release
form, may obtain copies of these documents by visiting the
settlement website at http://www.CromptonSecuritiesSettlement.com/
or by contacting the Claims Administrator, Epiq Systems, at the
address and telephone number listed below.
The deadline to submit a Proof of Claim is September 24, 2010.
Those who previously submitted a Proof of Claim in connection with
the previous settlement of the Lawsuit and wish to participate in
the current Settlement, need not do anything else at this time.
As more fully described in the Notice, the deadline for submitting
objections and requests for exclusion is July 28, 2010. Class
Members may still object to the Settlement or request exclusion
from the Class even if they previously submitted a Proof of Claim
in connection with the previous settlement.
About Chemtura Corp.
Based in Middlebury, Connecticut, Chemtura Corporation (CEM) --
http://www.chemtura.com/-- with 2008 sales of $3.5 billion, is a
global manufacturer and marketer of specialty chemicals, crop
protection products, and pool, spa and home care products.
Chemtura Corporation and 26 of its U.S. affiliates filed voluntary
petitions for relief under Chapter 11 on March 18, 2009 (Bankr.
S.D.N.Y. Case No. 09-11233). M. Natasha Labovitz, Esq., at
Kirkland & Ellis LLP, in New York, serves as bankruptcy counsel.
Wolfblock LLP serves as the Debtors' special counsel. The
Debtors' auditors and accountant are KPMG LLP; their investment
bankers are Lazard Freres & Co.; their strategic communications
advisors are Joele Frank, Wilkinson Brimmer Katcher; their
business advisors are Alvarez & Marsal LLC and Ray Dombrowski
serves as their chief restructuring officer; and their claims and
noticing agent is Kurtzman Carson Consultants LLC.
As of December 31, 2008, the Debtors had total assets of
$3.06 billion and total debts of $1.02 billion.
Bankruptcy Creditors' Service, Inc., publishes Chemtura
Bankruptcy News. The newsletter tracks the Chapter 11
proceedings undertaken by Chemtura Corp. and its affiliates.
(http://bankrupt.com/newsstand/or 215/945-7000)
CHRISTOPHER PAGE: Case Summary & Largest Unsecured Creditor
-----------------------------------------------------------
Joint Debtors: Christopher Page
Farnoosh J. Page
7062 Morecambe Drive
San Jose, CA 95120
Bankruptcy Case No.: 10-56130
Chapter 11 Petition Date: June 12, 2010
Court: United States Bankruptcy Court
Northern District of California (San Jose)
Judge: Charles Novack
Debtor's Counsel: Judson T. Farley, Esq.
Law Offices of Judson T. Farley
830 Bay Ave. #B
Capitola, CA 95010-2173
Tel: (831)476-1766
E-mail: judsonfarley@sbcglobal.net
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
In its list of 20 largest unsecured creditors, the Company posted
only one entry:
Entity Nature of Claim Claim Amount
------ --------------- ------------
Bank Of America House 10518 $179,421
P.O. Box 515503 Coloma Rd Rancho
Los Angeles, CA 90051 Cordova, CA 95670
The petition was signed by Christopher Page and Farnoosh J. Page.
CHEROKEE RUN: Not Allowed to Cherry-Pick Lease Provisions
---------------------------------------------------------
WestLaw reports that a bankruptcy court could not relieve a
country club which had filed for Chapter 11 relief of its
obligation, pursuant to its assumed lease with a city, to provide
the city's authorized representatives with free rounds of golf in
order "to entertain sponsors and clients and for promotional and
other business purposes." The country club complained that this
provision exposed it to significant expense. However, executory
contracts may not be assumed in part and rejected in part, but
must be assumed with their burdens. In re Cherokee Run Country
Club, Inc., --- B.R. ----, 2009 WL 6496549 (Bankr. N.D. Ga.)
(Bihary, J.).
Cherokee Run Country Club, Inc., located in Conyers, Ga., filed a
chapter 11 petition (Bankr. N.D. Ga. Case No. 08-84120) on
Nov. 25, 2008. Stephen H. Block, Esq., at Levine, Block &
Strickland, LLP, in Atlanta, represents the Debtor. As reported
in the Troubled Company Reporter on Dec. 9, 2008, the Debtor
estimated its assets and debts at less than $10 million at the
time of the filing.
CIRCUIT CITY: Mediation May Break Logjam on Liquidating Plan
------------------------------------------------------------
Bill Rochelle at Bloomberg News reports that the Bankruptcy Court
is convening a hearing to consider a request by Circuit City
Stores Inc. to send its outstanding issue with the Official
Committee of Unsecured Creditors to mediation. The Creditors
Committee does not oppose the request. Circuit City and the
Committee jointly filed a liquidating plan in August, but the two
sides never came to agreement on who would control the liquidating
trust to be created under the plan. The committee filed its own
version of the plan and liquidating trust documents early this
month.
Bloomberg recounts that the disclosure statement for the joint
plan was approved in September. The Plan couldn't be confirmed in
view of outstanding Canadian tax claims and disagreement over
control of the liquidating trust.
About Circuit City
Headquartered in Richmond, Virginia, Circuit City Stores Inc.
(NYSE: CC) -- http://www.circuitcity.com/-- was a specialty
retailer of consumer electronics, home office products,
entertainment software and related services in the U.S. and
Canada.
Circuit City Stores together with 17 affiliates filed a voluntary
petition for reorganization relief under Chapter 11 of the
Bankruptcy Code on November 10 (Bankr. E.D. Va. Lead Case No.
08-35653). InterTAN Canada, Ltd., which runs Circuit City's
Canadian operations, also sought protection under the Companies'
Creditors Arrangement Act in Canada.
Gregg M. Galardi, Esq., and Ian S. Fredericks, Esq., at Skadden,
Arps, Slate, Meagher & Flom, LLP, are the Debtors' general
restructuring counsel. Dion W. Hayes, Esq., and Douglas M. Foley,
Esq., at McGuireWoods LLP, are the Debtors' local counsel. The
Debtors also tapped Kirkland & Ellis LLP as special financing
counsel; Wilmer, Cutler, Pickering, Hale and Dorr, LLP, as special
securities counsel; and FTI Consulting, Inc., and Rotschild Inc.
as financial advisors. The Debtors' Canadian general
restructuring counsel is Osler, Hoskin & Harcourt LLP. Kurtzman
Carson Consultants LLC is the Debtors' claims and voting agent.
The Debtors disclosed total assets of $3,400,080,000 and debts of
$2,323,328,000 as of August 31, 2008.
Circuit City has opted to liquidate its 721 stores. It has
obtained the Bankruptcy Court's approval to pursue going-out-of-
business sales, and sell its store leases.
In May 2009, Systemax Inc., a multi-channel retailer of computers,
electronics, and industrial products, acquired certain assets,
including the name Circuit City, from the Debtors through a Court-
approved auction.
Bankruptcy Creditors' Service, Inc., publishes Circuit City
Bankruptcy News. The newsletter tracks the Chapter 11 proceedings
of Circuit City Stores Inc. and its debtor-affiliates.
(http://bankrupt.com/newsstand/or 215/945-7000).
COLONIAL BANCGROUP: Court Grants 2-Month Exclusivity Extension
--------------------------------------------------------------
Dow Jones Daily Bankruptcy Review reports that Colonial BancGroup
Inc. won two extra months to keep control of its restructuring as
it works to resolve ownership disputes over the assets of its
failed banking subsidiary.
As reported by the Troubled Company Reporter, Colonial Bancgroup
asked the U.S. Bankruptcy Court for the Middle District of Alabama
to extend its exclusive periods to file and solicit acceptances
for the proposed plan of reorganization until August 20, 2010, and
October 29, 2010, respectively. Absent an extension, the Debtor's
exclusivity periods would expire on June 18 and August 20.
The Debtor said it needs additional time to file a plan or
disclosure statement in light of the pending litigation with the
FDIC-Receiver and corresponding disputes regarding ownership of
the Debtor's assets.
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.
COLONIAL BANCGROUP: Ex-Chair Indicted on His Role in Bank Failure
-----------------------------------------------------------------
Lee Bentley Farkas, the former chairman of a private mortgage
lending company, Taylor, Bean & Whitaker (TBW), was arrested in
Ocala, Fla., and charged in a 16-count indictment for his alleged
role in a more than $1.9 billion fraud scheme that contributed to
the failures of Colonial Bank, one of the 50 largest banks in the
United States in 2009, and TBW, one of the largest privately held
mortgage lending companies in the United States in 2009.
The charges were announced by members of the Financial Fraud
Enforcement Task Force, including Assistant Attorney General Lanny
A. Breuer of the Criminal Division; U.S. Attorney Neil H. MacBride
for the Eastern District of Virginia; Special Inspector General
Neil Barofsky for the Troubled Asset Relief Program (SIGTARP);
Assistant Director in Charge Shawn Henry of the FBI's Washington
Field Office; Kenneth M. Donohue, Inspector General of the
Department of Housing and Urban Development (HUD OIG); Jon T.
Rymer, Inspector General of the Federal Deposit Insurance
Corporation (FDIC OIG); and Victor F. O. Song, Chief of the
Internal Revenue Service (IRS) Criminal Investigation.
An indictment unsealed today in U.S. District Court for the
Eastern District of Virginia charges Farkas, of Ocala, Fla., with
one count of conspiracy to commit bank, wire and securities fraud;
six counts of bank fraud; six counts of wire fraud; and three
counts of securities fraud. The indictment also seeks
approximately $22 million in forfeiture from Farkas.
According to the indictment and a motion seeking Farkas's
detention filed in U.S. District Court for the Middle District of
Florida, Farkas and his co-conspirators allegedly engaged in a
scheme to misappropriate more than $400 million from Colonial
Bank's Mortgage Warehouse Lending Division in Orlando, Fla., and
approximately $1.5 billion from Ocala Funding, a mortgage lending
facility controlled by TBW. Farkas and his co-conspirators
allegedly misappropriated this money to cover TBW's operating
losses. According to the government motion seeking Farkas's
detention, the fraud scheme contributed to the failures of
Colonial Bank and TBW. The indictment further alleges that Farkas
and his co-conspirators committed wire and securities fraud in
connection with their attempt to convince the United States
government to provide Colonial Bank with approximately
$553 million in TARP funds.
"This alleged fraud scheme is an example of the damaging and
destabilizing impact financial crimes can have on our nation's
financial institutions. Individuals and companies that violate
the law in a reckless pursuit of profits must be held accountable
for their crimes," said Assistant Attorney General Breuer. "The
Department of Justice and our partners in the Financial Fraud
Enforcement Task Force will continue to act vigilantly, quickly
and aggressively in order to ensure that boardroom and back office
fraudsters alike are brought to justice."
"Taxpayers have paid a hefty price for the crimes related to the
current financial crisis, and investors in Colonial and Ocala
Funding were among those directly affected by this conspiracy,"
said U.S. Attorney MacBride. "The indictment we are announcing
today is a great example of the productive partnership the Eastern
District of Virginia has with the Criminal Division's Fraud
Section and of our intention to meet the Attorney General's call
to aggressively pursue financial fraud cases of national
significance."
"Today's indictment describes an unprecedented scheme by
executives at two large financial institutions to steal more than
$550 million from the American taxpayer. Due to the efforts of
SIGTARP agents, our law enforcement partners, and the SEC, this
scheme was stopped dead in its tracks, taxpayers were protected,
and Lee Farkas has joined the growing list of financial industry
executives who have been charged with TARP-related frauds.," said
Special Inspector General Barofsky. "Today's charges should send
a powerful message to those who try to profit criminally from our
national economic crisis that SIGTARP and its partners will work
tirelessly to protect the American taxpayer, and we will be
relentless in our pursuit to bring such criminals to justice."
Court documents allege that the scheme began in 2002, when Farkas
and his co-conspirators ran overdrafts in TBW bank accounts at
Colonial Bank in order to cover TBW's cash shortfalls. Farkas and
his co-conspirators at TBW and Colonial Bank allegedly transferred
money between accounts at Colonial Bank to hide the overdrafts.
After the overdrafts grew to tens of millions of dollars, Farkas
and his co-conspirators allegedly covered up the overdrafts and
operating losses by causing Colonial Bank to purchase from TBW
more than $400 million in what amounted to fake mortgage loan
assets, including loans that TBW had already sold to other
investors and fake interests in pools of loans. Farkas and his
co-conspirators allegedly caused Colonial Bank to hold these
purported assets on its books at their face value when in fact the
mortgage loan assets were worthless.
Court documents also allege that Farkas and co-conspirators caused
TBW to hide impaired-value mortgage loans that it was unable to
sell. Through a series of sham transactions, the conspirators
allegedly hid impaired-value loans on Colonial Bank's books for a
period of years in some cases.
According to court documents, Farkas and his co-conspirators at
TBW also misappropriated hundreds of millions of dollars from
Ocala Funding. Ocala Funding sold asset-backed commercial paper
to financial institution investors, including Deutsche Bank and
BNP Paribas Bank. Ocala Funding, in turn, was required to
maintain collateral in the form of cash and/or mortgage loans at
least equal to the value of outstanding commercial paper.
The court documents allege that Farkas and his co-conspirators
diverted cash from Ocala Funding to TBW to cover its operating
losses, and as a result, created significant deficits in the
amount of collateral Ocala Funding possessed to back the
outstanding commercial paper. To cover up the diversions, the
conspirators allegedly sent false information to Deutsche Bank,
BNP Paribas Bank and other financial institution investors to lead
them to falsely believe that they had sufficient collateral
backing the commercial paper they had purchased. According to
court documents, in or about August 2009, Deutsche Bank and BNP
Paribas Bank held approximately $1.68 billion in Ocala Funding
commercial paper that had only approximately $150 million in cash
and mortgage loans collateralizing it. When TBW failed in August
2009, the banks were unable to redeem their commercial paper for
full value.
According to the indictment, in the fall of 2008, Colonial Bank's
holding company, Colonial BancGroup Inc., applied for $570 million
in taxpayer funding through the Capital Purchase Program (CPP), a
sub-program of the U.S. Treasury Department's Troubled Asset
Relief Program (TARP). In connection with the application,
Colonial BancGroup submitted financial data and filings that
included materially false information related to mortgage loan and
securities assets held by Colonial Bank as a result of the
fraudulent scheme described above.
According to the indictment, Treasury conditionally approved
Colonial BancGroup's TARP application contingent on the bank
raising $300 million in private capital. Farkas and his co-
conspirators allegedly led an effort to raise the $300 million. On
or about March 31, 2009, the conspirators falsely informed
Colonial BancGroup that they had identified sufficient investors
to satisfy the TARP contingency. Farkas and his co-conspirators
allegedly caused $30 million to be placed in escrow, falsely
claiming it represented payments by investors, when in fact Farkas
and another co-conspirator had diverted $25 million of the escrow
amount from Ocala Funding. The indictment alleges that Farkas and
his co-conspirators committed wire and securities fraud in
connection with these misrepresentations. Ultimately, Colonial
BancGroup did not receive any TARP funds.
The indictment also alleges that Farkas and his co-conspirators
caused Colonial BancGroup to file materially false financial data
with the Securities and Exchange Commission (SEC) regarding its
assets in annual reports contained in Forms 10-K and quarterly
filings contained in Forms 10-Q. Colonial BancGroup's materially
false financial data allegedly included overstated assets for
mortgage loans that had little to no value that Farkas and his co-
conspirators caused Colonial Bank to purchase. The indictment
also alleges that Farkas and his co-conspirators caused TBW to
submit materially false financial data to the Government National
Mortgage Association (Ginnie Mae) in order to extend TBW's
authority to issue Ginnie Mae mortgage-backed securities.
According to court documents, Farkas also personally
misappropriated over $20 million from TBW and Colonial Bank.
In August 2009, the Alabama State Banking Department, Colonial
Bank's regulator, seized the bank and appointed the FDIC as
receiver. Colonial BancGroup also filed for bankruptcy in August
2009.
Farkas faces a maximum prison sentence of 30 years for the
conspiracy charge and for each count of bank fraud. The maximum
prison sentence for each count of wire fraud related to TARP is 20
years and for each count of wire fraud affecting a financial
institution is 30 years. Farkas also faces a maximum sentence of
25 years in prison for each securities fraud count.
An indictment is merely a charge, and the defendant is presumed
innocent until proven guilty.
In a related action, the U.S. Securities and Exchange Commission
(SEC) has filed an enforcement action against Farkas in the
Eastern District of Virginia.
The case is being prosecuted by Deputy Chief Patrick Stokes and
Trial Attorneys Brigham Cannon, Charles Reed and Robert Zink of
the Criminal Division's Fraud Section and Assistant U.S. Attorneys
Charles Connolly and Paul Nathanson of the Eastern District of
Virginia. This case was investigated by the FBI's Washington
Field Office, SIGTARP, FDIC OIG, HUD OIG, and the IRS Criminal
Investigation. The Financial Crimes Enforcement Network (FinCEN)
of the Department of the Treasury also provided support in the
investigation.
This prosecution is part of efforts underway by President Barack
Obama's Financial Fraud Enforcement Task Force. President Obama
established the interagency Financial Fraud Enforcement Task Force
to wage an aggressive, coordinated and proactive effort to
investigate and prosecute financial crimes. The task force
includes representatives from a broad range of federal agencies,
regulatory authorities, inspectors general and state and local law
enforcement who, working together, bring to bear a powerful array
of criminal and civil enforcement resources. The task force is
working to improve efforts across the federal executive branch,
and with state and local partners, to investigate and prosecute
significant financial crimes, ensure just and effective punishment
for those who perpetrate financial crimes, combat discrimination
in the lending and financial markets, and recover proceeds for
victims of financial crimes.
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.
CORUS BANKSHARES: Files for Bankruptcy with $530 Million in Debt
----------------------------------------------------------------
Corus Bankshares Inc. filed for bankruptcy protection (Bankr. N.D.
Ill. Case No. 10-26881) on June 15, nine months after the Chicago-
based company's banking subsidiary was placed in receivership by
federal regulators.
The Company listed assets of $314.1 million against debt totaling
$532.9 million as of the filing date.
David R. Seligman, Esq., at Kirkland & Ellis LLP, represents the
Debtor in its Chapter 11 effort.
Law360 says the Chapter 11 filing also triggered repayment
obligations for Corus under several financial instruments and
agreements.
Bloomberg recounts that Corus said in March that Chapter 11 or
liquidation were among the alternatives under consideration.
Corus said at the time that it expects to have tax refund claims
totaling $260 million. Corus promised to oppose efforts by the
Federal Deposit Insurance Corp. to receive cash for the bank
subsidiary's portion of the tax refunds.
About Corus Bankshares
Corus Bankshares, Inc., is a bank holding company. Its lone
operating unit, Corus Bank, N.A., closed September 11, 2009, by
regulators and the Federal Deposit Insurance Corporation was named
receiver. To protect the depositors, the FDIC entered into a
purchase and assumption agreement with MB Financial Bank, National
Association, Chicago, Illinois, to assume all of the deposits of
Corus Bank.
DANNY AHN: Case Summary & 14 Largest Unsecured Creditors
--------------------------------------------------------
Debtor: Danny Ahn
20658 Wells Dr.
Woodland Hills, CA 91364
Bankruptcy Case No.: 10-17071
Chapter 11 Petition Date: June 11, 2010
Court: United States Bankruptcy Court
Central District of California (San Fernando Valley)
Judge: Maureen Tighe
Debtor's Counsel: Mark E. Brenner, Esq.
7009 Owensmouth Ste 102
Canoga Park, CA 91303
Tel: (818) 313-9966
E-mail: mb@brennerlex.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
A list of the Company's 14 largest unsecured creditors
filed together with the petition is available for free
at http://bankrupt.com/misc/cacb10-17071.pdf
The petition was signed by Danny Ahn.
DAVID REDDING: Case Summary & 8 Largest Unsecured Creditors
-----------------------------------------------------------
Joint Debtors: David Bryson Redding
Gloria Ines Redding
12 Red Barn Court
Oakley, CA 94561
Bankruptcy Case No.: 10-46676
Chapter 11 Petition Date: June 11, 2010
Court: United States Bankruptcy Court
Northern District of California (Oakland)
Judge: Randall J. Newsome
Debtor's Counsel: Kenneth R. Graham, Esq.
Law Office of Kenneth R. Graham
171 Mayhew Way #208
Pleasant Hill, CA 94523
Tel: (925) 932-0170
E-mail: krg@elaws.com
Scheduled Assets: $1,345,136
Scheduled Debts: $1,885,684
A list of the Company's 8 largest unsecured creditors
filed together with the petition is available for free
at http://bankrupt.com/misc/canb10-46676.pdf
The petition was signed by David Bryson Redding and Gloria Ines
Redding.
DENNY'S CORP: Board Chair Smithart-Oglesby Named Interim CEO
------------------------------------------------------------
Denny's Corporation said that Debra Smithart-Oglesby, Denny's
Board Chair, has been appointed Interim Chief Executive Officer,
succeeding Nelson Marchioli. Ms. Smithart-Oglesby will serve as
CEO until the Company completes the process of hiring a permanent
CEO.
Ms. Smithart-Oglesby stated, "I am a passionate believer in the
Denny's brand and I welcome the opportunity to assume this interim
role at an important juncture in the Company's history. As the
Company nears completion of its transition to a franchise-oriented
business model, we have been planning for a transition in
leadership. Today's announcement will help accelerate that
process and the Company's ability to attract best-in-class
candidates for the position of CEO. I want to thank Nelson for
his dedicated service to the Company and the Denny's brand; he has
worked tirelessly on its behalf."
Denny's also announced the formation of a strategic team to
provide organizational focus on the Company's top priorities
during this transition period, with particular emphasis on driving
sales and guest counts and ensuring operational excellence across
the system. This team will be led by Debra Smithart-Oglesby and
will consist of Mark Wolfinger, Denny's Chief Financial Officer
and Chief Administrative Officer, Bill Cox, a large Denny's
franchisee of 16 years, with over 30 years of experience in the
restaurant industry including senior operating roles at multiple
restaurant concepts, and Bob Langford, a large Denny's franchisee
of 10 years, with over 30 years of experience in the restaurant
industry including senior leadership roles at a number of
concepts. Mr. Cox will provide support related to operations
until the position of Chief Operating Officer is filled and Mr.
Langford will continue to provide support related to marketing
until the position of Chief Marketing Officer is filled. The
search process for both positions is in an advanced stage.
Ms. Smithart-Oglesby concluded, "We are fortunate to have a deep
and talented team of experienced restaurant professionals at the
Company and within the Denny's family. Our team is intensely
focused on driving sustained improvement in our results in order
to maximize stockholder value. We look forward to bringing a
renewed sense of energy and passion to our work to achieve the
full potential of this great brand."
About Denny's Corporation
Based in Spartanburg, South Carolina, Denny's Corporation (NASDAQ:
DENN) -- http://www.dennys.com/-- is one of America's largest
full-service family restaurant chains, consisting of 1,322
franchised and licensed units and 237 company-owned units, with
operations in the United States, Canada, Costa Rica, Guam, Mexico,
New Zealand and Puerto Rico.
According to the Troubled Company Reporter on June 14, 2010,
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.
DOLLAR THRIFTY: Six Individuals Elected as Directors
----------------------------------------------------
Dollar Thrifty Automotive Group Inc. said that at the annual
meeting of stockholders, majority of shareholders voted in favor
of:
* Election of Directors: The six nominees named in the
Company's proxy statement were elected for a one-year term
expiring in 2011 or until their successors are duly elected
and qualified, by the following vote:
-- Thomas P. Capo
-- Maryann N. Keller
-- Hon. Edward C. Lumley
-- Richard W. Neu
-- John C. Pope
-- Scott L. Thompson
* Ratification of Appointment of Independent Registered Public
Accounting Firm: Deloitte & Touche LLP was ratified as the
auditors of the Company's financial statements for fiscal
year 2010.
* Incentive Plan: Management objectives for performance-based
awards under the Company's Second Amended and Restated Long-
Term Incentive Plan and Director Equity Plan were approved.
Dollar Thrifty Automotive Group, Inc. -- http://www.dtag.com/--
through its subsidiaries, is engaged in the business of daily
rental of vehicles to business and leisure customers through
company-owned stores. The company leases vehicles to franchisees
for use in the daily vehicle rental business, sells vehicle
rental franchises worldwide and provides sales and marketing,
reservations, data processing systems, insurance and other
services to franchisees. It owns DTG Operations, Inc., Dollar
Rent A Car, Inc. and Thrifty, Inc. The company has two
additional subsidiaries, Rental Car Finance Corp. and Dollar
Thrifty Funding Corp., which are special purpose financing
entities. During the year ended Dec. 31, 2008, Dollar and
Thrifty had 741 locations in the United States and Canada of
which 400 were company-owned stores and 341 were locations
operated by franchisees.
* * *
According to the Troubled Company Reporter on May 5, 2010,
DBRS has placed the ratings of Dollar Thrifty Automotive Group,
Inc. (DTAG or the Company), including its Issuer Rating of B
(high), Under Review with Positive Implications. This ratings
action follows the announcement that the Company has reached a
definitive agreement to be acquired by the higher-rated Hertz
Corporation (Hertz). DBRS rates Hertz BB, at the issuer level.
DORAL ENERGY: Completes Permian Basin Oil & Gas Asset Divestiture
-----------------------------------------------------------------
Doral Energy Corp. disclosed to shareholders that Doral Management
has completed on schedule its divestiture of its Hanson Energy Oil
and Gas Assets for $10,000,000. Use of proceeds will include the
re-payment of its Senior Secured Debt with Macquarie Bank Limited,
the payoff of all trade debt associated with the Hanson Energy Oil
and Gas Assets, and the payoff of two notes, that are now mature
due to the divestiture of the assets, in the amount of
approximately $725,000 leaving the Company enough surplus cash to
successfully close on the acquisition of certain South Eastern New
Mexico Permian Age producing oil assets described in the Company's
press release dated June 15, 2010.
Management Comments
Mr. E.W. Gray II, Chairman and CEO states, "We are pleased to
announce that the divestiture of our Hanson Energy Oil and Gas
Assets in now complete. The ability to re-structure the company
in a way that can potentially provide greater shareholder value,
without having to enter bankruptcy, has now been successful
achieved. Doral is now poised to execute on our original business
model of acquiring under-valued producing oil and gas assets
within the Permian Basin in order to achieve the goal of
increasing shareholder value. We appreciate the patience of all
shareholders during this process and look forward to working
relentlessly in our efforts to increasing the market
capitalization of Doral Energy."
About Doral Energy
Doral Energy Corp. is an oil and gas exploitation and production
company headquartered in Midland, Texas. Doral Energy Corp.'s
strategy is to grow a portfolio of under-developed production and
exploitation assets with the potential for generating near-term
increases in existing production through operational improvements,
and longer-term development of proved undeveloped reserves by
infill drilling. Doral focuses on identifying acquisitions that
generate immediate cash flow from production, but which also have
strong proved developed non-producing and proved undeveloped
reserves that can be tapped for significant growth. The prolific
Permian Basin of Texas and New Mexico is the geographic region of
focus for the Company's future acquisition activity.
* * *
As reported in the Troubled Company Reporter on March 25, 2010,
Doral Energy Corp. filed its quarterly report on Form 10-Q,
showing a net loss of $1,117,730 on $493,703 of revenue for the
three months ended January 31, 2010, compared to a net loss of
$239,823 on $338,948 of revenue for the same period ended
January 31, 2009. The Company's balance sheet as of January 31,
2010, showed $20,726,351 in total assets, $10,009,187 of debt, and
stockholders' equity of $10,717,164.
"As of January 31, 2010, we had negative working capital. This
factor raises substantial doubt about the Company's ability to
continue as a going concern."
ENERGAS RESOURCES: Delays Filing of Quarterly Report on Form 10-Q
-----------------------------------------------------------------
Energas Resources Inc. said it could not file its quarterly report
on Form 10-Q for the period ended April 30, 2010, on time with the
Securities and Exchange Commission.
According to the Company, it did not complete its financial
statements for the three months ended April 30, 2010 in sufficient
time so as to permit the filing of the 10-Q report by June 14,
2010. As a result, more time is needed to file the report.
About Energas Resources
Based in Oklahoma City, Oklahoma, Energas Resources Inc. (OTC BB:
EGSR) -- http://www.energasresources.com/-- is primarily engaged
in the operation, development, production, exploration and
acquisition of petroleum and natural gas properties in the
United States through its wholly-owned subsidiary, A.T. Gas
Gathering Systems Inc. In addition, the company owns and operates
natural gas gathering systems located in Oklahoma, which serve
wells operated by the company for delivery to a mainline
transmission system. The majority of the company's operations are
maintained and occur through A.T. Gas.
Smith, Carney & Co. P.C. has expressed substantial doubt against
Energas Resources Inc.'s ability as a going concern after auditing
the Company's results for the fiscal year ended January 31, 2010.
In its Form 10-K filed with the U.S. Securities and Exchange
Commission, the Company reported a net loss of $1.9 million on
$165,794 of total revenue for the year ended Jan. 21, 2010,
compared with a net loss of $2.4 million on $284,297 total revenue
during the same period a year ago. The Company's balance sheet
for Jan. 21, 2010, showed $7.4 million in total assets and
$967,392 in total liabilities, for a total stockholders' equity of
$6.5 million.
EXTENDED STAY: Starwood Wants to Halt Debtor's Plan Exclusivity
---------------------------------------------------------------
Bill Rochelle at Bloomberg News reports that Starwood Capital
Group LLC, which lost the auction to buy Extended Stay Inc., said
it's prepared to file a plan where the existing mortgages would
stay in place and be paid according to their terms. Starwood
would invest "substantial new cash" while unsecured creditors and
mezzanine lenders would receive warrants, an interest in a
litigation trust, and the right to subscribe to new stock on the
same terms as Starwood. Starwood said it will soon file a motion
to end Extended Stay's exclusive right to propose a Chapter 11
plan.
To recall, Centerbridge Partners LP, Paulson & Co. and Blackstone
Group LP won the auction with a $3.93 billion all-cash offer
that would give them all of the equity. Bloomberg notes that if
Extended Stay is sold to the Centerbridge group, the price is less
than the $4.1 billion in mortgage loans, meaning that mezzanine
lenders and unsecured creditors would receive nothing aside from
an interest in a litigation trust.
Extended Stay has filed a revised plan in light of the $3.925
billion offer for plan funding from Centerbridge. A hearing on
the disclosure statement explaining the plan is scheduled for
June 17.
The Official Committee of Unsecured Creditors and Starwood want
the hearing postponed.
The Fifth Amended Plan
Under the Fifth Amended Plan, CP ESH Investors LLC, a newly
formed entity owned by the Centerbridge-led group, will acquire
100% of the common interests in a new company or "NewCo" that
will be formed as of the effective date of the Fifth Amended Plan
in exchange for $3,615,755,444 in cash and a contribution of
mortgage certificates held by CP ESH in the sum of $309,244,555.
The Fifth Amended Plan provides that 100% of the equity interests
in ESA Properties and other mortgage borrowers as well as the
equity interests in other debtor affiliates will be cancelled and
reissued to NewCo. The balance of the Debtors will be liquidated
and dissolved as of the effective date.
NewCo will be owned indirectly by the Centerbridge group through
CP ESH or other entities. It will own and control the Debtors'
portfolio of about 666 properties, which include 664 hotels, a
headquarters building in Spartanburg, South Carolina, and a
parcel of undeveloped land located in Minnesota.
The holder of the "mortgage facility claim" will receive a cash
distribution, the mortgage certificates and interests in a
litigation trust that will be established on the effective date
of the Fifth Amended Plan. Meanwhile, holders of "mezzanine
facilities claims" and general unsecured claims may also receive
interests in the litigation trust.
As holders of the mortgage loan, Wells Fargo Bank N.A. or the
special servicer, CWCapital Asset Management LLC, can exercise
voting rights with respect to the "mortgage facility claim" and
the "mortgage facility deficiency claim." In conjunction with
the auction, CWCapital entered into a Plan Support Agreement
pursuant to which it agreed to vote its claims in Classes 2 and
4A to accept the Fifth Amended Plan.
Full-text copies of the Fifth Amended Plan and the Disclosure
Statement are available for free at:
http://bankrupt.com/misc/ESI_5thAmendedPlan.pdf
http://bankrupt.com/misc/ESI_DS5thAmendedPlan.pdf
About Starwood Capital
Starwood Capital is a private, US-based investment firm with a
core focus on global real estate. Since the group's inception in
1991, the firm, through its various funds, has invested more than
$6 billion of equity capital, representing $21 billion in assets.
Starwood currently has approximately $14 billion of assets under
management
About Extended Stay
Extended Stay is the largest owner and operator of mid-price
extended stay hotels in the United States, holding one of the most
geographically diverse portfolios in the lodging sector with
properties located across 44 states (including 11 hotels located
in New York) and two provinces in Canada. As a result of
acquisitions and mergers, Extended Stay's portfolio has expanded
to encompass over 680 properties, consisting of hotels directly
owned or leased by Extended Stay or one of its affiliates.
Extended Stay currently operates five hotel brands: (i) Crossland
Economy Studios, (ii) Extended Stay America, (iii) Extended Stay
Deluxe, (iv) Homestead Studio Suites, and (v) StudioPLUS Deluxe
Studios.
Extended Stay Inc. and its affiliates filed for Chapter 11 on
June 15, 2009 (Bankr. S.D.N.Y. Case No. 09-13764). Judge James M.
Peck handles the case. Marcia L. Goldstein, Esq., at Weil Gotshal
& Manges LLP, in New York, represents the Debtors. Lazard Freres
& Co. LLC is the Debtors' financial advisors. Kurtzman Carson
Consultants LLC is the claims agent. Extended Stay had assets of
$7.1 billion and debts of $7.6 billion as of the end of 2008.
Bankruptcy Creditors' Service, Inc., publishes Extended Stay
Bankruptcy News. The newsletter provides gavel-to-gavel coverage
of the Chapter 11 proceedings undertaken by Extended Stay Inc. and
its various affiliates. (http://bankrupt.com/newsstand/or
215/945-7000).
FAIRFIELD SENTRY: Files for Chapter 15 Bankruptcy in Manhattan
--------------------------------------------------------------
Bob Van Voris at Bloomberg News reports that Fairfield Sentry
Ltd., the biggest feeder fund in Bernard Madoff's fraudulent
investment business, filed a petition under Chapter 15 of the
U.S. Bankruptcy Code on June 14, 2010 (Bankr. S.D.N.Y. Case No.
10-13164). Bloomberg says Fairfield Sentry seeks U.S. recognition
of the bankruptcy case filed in the British Virgin Islands in
April 2009.
Bloomberg, citing the bankruptcy petition, reports Fairfield
Sentry took money from non-U.S. residents and some U.S.-based tax-
exempt entities to be invested with Madoff. Bloomberg relates
that, according to the court filing, 95% of Fairfield Sentry's
assets were invested with Bernard L. Madoff Investment Securities
LLC. Account statements showed $7 billion of Fairfield Sentry
assets Madoff claimed to hold in October 2008, it said.
Fairfield Sentry listed between $100 million and $500 million in
assets and no more than $500,000 in debts in its Chapter 15
petition, according to Bloomberg.
Bloomberg notes Fairfield Sentry is facing a lawsuit by Irving
Picard, the court-appointed trustee in the Madoff firm's
bankruptcy, to recover $3.5 billion paid to the fund in the six
years before the suit. Fairfield Sentry seeks $6.3 billion in the
Madoff bankruptcy. Mr. Picard opposes the claim.
According to Bloomberg, Fairfield Sentry said Mr. Picard doesn't
oppose the Chapter 15 petition, on the understanding that the fund
won't seek to block Mr. Picard's suit against it.
Fairfield Sigma Ltd. and Fairfield Lambda Ltd., two funds that
channeled money to Fairfield Sentry for investment with Madoff,
also filed for Chapter 15 protection.
FANNIE MAE: FHFA Directs Delisting of Stock From NYSE
-----------------------------------------------------
The Federal Housing Finance Agency has directed Fannie Mae and
Freddie Mac, operating in conservatorship, to delist their common
and preferred stock from the New York Stock Exchange and any other
national securities exchange. Once the delisting is completed,
each Enterprise's common and preferred stock is expected to be
quoted on the Over-the-Counter Bulletin Board.
"FHFA's determination to direct each company to delist does not
constitute any reflection on either Enterprise's current
performance or future direction, nor does delisting imply any
other findings or determination on the part of FHFA as regulator
or conservator," said FHFA Acting Director Edward J. DeMarco. "The
determination to direct delisting is related to stock exchange
requirements for maintaining price levels and curing
deficiencies," Mr. DeMarco said.
Each Enterprise's common stock price has hovered near the New York
Stock Exchange minimum average closing price requirement of $1
over 30 trading days for most months since the conservatorships
were established in September 2008. Most recently, Fannie Mae's
closing stock price has been below the required $1 average price
for the past 30 trading days. Per NYSE rules, a company in that
condition must either drop from the exchange or undertake a `cure'
to restore the stock price above the $1 mark if it does not meet
the NYSE's minimum price requirements. The alternatives for
putting in place such a cure do not assure maintaining the minimum
price level or avoiding loss of shareholder value.
In view of Freddie Mac's share price being close to the $1 mark
and the common situation of both companies operating in
conservatorship with support from the Treasury Department through
the Senior Preferred Stock Purchase Agreements, FHFA has
determined that Freddie Mac should also initiate an orderly
delisting process.
"A voluntary delisting at this time simply makes sense and fits
with the goal of a conservatorship to preserve and conserve
assets," said Mr. DeMarco. Each Enterprise's stock will continue
to trade, but through a different trading mechanism. The
Enterprises remain Securities and Exchange Commission registrants
and subject to applicable federal securities laws.
According to Reuters, in NYSE trading near the open on Wednesday,
Fannie Mae's shares traded around 70 cents, down 28%, and
Freddie's shares were quoted at about $1, down 22%.
The two companies have tapped more than $145 billion combined in
federal aid, and have an open credit line with the Treasury
Department through 2012.
The Federal Housing Finance Agency regulates Fannie Mae, Freddie
Mac and the 12 Federal Home Loan Banks. These government-
sponsored enterprises provide more than $5.9 trillion in funding
for the U.S. mortgage markets and financial institutions.
About Fannie Mae
Federal National Mortgage Association, aka Fannie Mae, is a
government-sponsored enterprise that was chartered by U.S.
Congress in 1938 to support liquidity, stability and affordability
in the secondary mortgage market, where existing mortgage-related
assets are purchased and sold. Fannie Mae provides market
liquidity by securitizing mortgage loans originated by lenders in
the primary mortgage market into Fannie Mae mortgage-backed
securities, and purchasing mortgage loans and mortgage-related
securities in the secondary market for its mortgage portfolio.
Fannie Mae acquires funds to purchase mortgage-related assets for
its mortgage portfolio by issuing a variety of debt securities in
the domestic and international capital markets. Fannie Mae also
makes other investments that increase the supply of affordable
housing. Its charter does not permit us to originate loans and
lend money directly to consumers in the primary mortgage market.
Fannie Mae has been under conservatorship, with the Federal
Housing Finance Agency acting as conservator, since September 6,
2008. As conservator, FHFA succeeded to all rights, titles,
powers and privileges of the company, and of any shareholder,
officer or director of the company with respect to the company and
its assets. The conservator has since delegated specified
authorities to Fannie Mae's Board of Directors and has delegated
to management the authority to conduct day-to-day operations.
The U.S. Department of the Treasury owns Fannie Mae's senior
preferred stock and a warrant to purchase 79.9% of its common
stock, and Treasury has made a commitment under a senior preferred
stock purchase agreement to provide Fannie with funds under
specified conditions to maintain a positive net worth.
FEDERAL-MOGUL: J. Kaminski Resigns as SVP & CFO
-----------------------------------------------
In a regulatory filing with the U.S. Securities and Exchange
Commission, Federal-Mogul Corporation disclosed that on May 11,
2010, Jeff Kaminski resigned from his positions as the company's
senior vice president and chief financial officer to pursue
another opportunity.
In a statement dated May 25, 2010, KB Home announced that it has
named Mr. Kaminski as executive vice president and chief financial
officer effective June 7, 2010.
"It is my pleasure to welcome Jeff Kaminski to the KB Home team,"
said Jeffrey T. Mezger, president and chief executive officer of
KB Home.
"Jeff brings with him a broad background in key financial
disciplines and extensive leadership experience in a leading
public company. I am confident Jeff will make a substantial
contribution to KB Home as we continue to execute our KBnxt Built
to Order(TM) business model and position the Company for growth in
the years ahead," Mr. Mezger said.
About Federal-Mogul
Federal-Mogul Corporation -- http://www.federalmogul.com/-- is a
global supplier of powertrain and safety technologies, serving the
world's foremost original equipment manufacturers of automotive,
light commercial, heavy-duty, agricultural, marine, rail, off-road
and industrial vehicles, as well as the worldwide aftermarket.
The company's leading technology and innovation, lean
manufacturing expertise, as well as marketing and distribution
deliver world-class products, brands and services with quality
excellence at a competitive cost. Federal-Mogul is focused on its
sustainable global profitable growth strategy, creating value and
satisfaction for its customers, shareholders and employees.
Federal-Mogul was founded in Detroit in 1899. The company is
headquartered in Southfield, Michigan, and employs nearly 39,000
people in 36 countries.
The Company filed for Chapter 11 protection on October 1, 2001
(Bankr. Del. Case No. 01-10582). Lawrence J. Nyhan Esq., James F.
Conlan, Esq., and Kevin T. Lantry, Esq., at Sidley Austin Brown &
Wood, and Laura Davis Jones, Esq., at Pachulski, Stang, Ziehl &
Jones, P.C., represented the Debtors in their restructuring
efforts. When the Debtors filed for protection from their
creditors, they listed $10.15 billion in assets and $8.86 billion
in liabilities. Federal-Mogul Corp.'s U.K. affiliate, Turner &
Newall, is based at Dudley Hill, Bradford. Peter D. Wolfson,
Esq., at Sonnenschein Nath & Rosenthal; and Charlene D. Davis,
Esq., Ashley B. Stitzer, Esq., and Eric M. Sutty, Esq., at The
Bayard Firm represented the Official Committee of Unsecured
Creditors.
The Debtors' Fourth Amended Plan was confirmed by the Bankruptcy
Court on November 8, 2007, and affirmed by the District Court on
November 14, 2007. Federal-Mogul emerged from Chapter 11 on
December 27, 2007. (Federal-Mogul Bankruptcy News; Bankruptcy
Creditors' Service Inc., http://bankrupt.com/newsstand/or
215/945-7000)
* * *
As reported by the TCR on June 5, 2009, Standard & Poor's Ratings
Services said it has lowered its corporate credit rating on
Federal-Mogul Corp. to 'B+' from 'BB-'. S&P also lowered the
ratings on the company's senior secured debt; the recovery ratings
are unchanged. The outlook is negative. "The ratings reflect
Federal-Mogul's weak business risk profile as
a major participant in the highly competitive global auto
industry, and its aggressive financial risk profile," S&P said.
FEDERAL-MOGUL: To Axe Health Care Coverage by End of June
---------------------------------------------------------
Federal-Mogul Corporation is planning to cut out company-paid
health care coverage for 2,700 salaried and hourly retirees by the
end of June 2010, Detroit Free Press reports.
According to Jim Burke, Federal-Mogul is cutting the benefits to
ensure company programs "are in line with comparable employers."
Mr. Burke is the company corporate communications director. Other
automotive part makers are also cutting out retiree benefits, the
Detroit Free Press says.
The company has declined to disclose how much it is saving by
cutting retiree benefits, the report relates.
About Federal-Mogul
Federal-Mogul Corporation -- http://www.federalmogul.com/-- is a
global supplier of powertrain and safety technologies, serving the
world's foremost original equipment manufacturers of automotive,
light commercial, heavy-duty, agricultural, marine, rail, off-road
and industrial vehicles, as well as the worldwide aftermarket.
The company's leading technology and innovation, lean
manufacturing expertise, as well as marketing and distribution
deliver world-class products, brands and services with quality
excellence at a competitive cost. Federal-Mogul is focused on its
sustainable global profitable growth strategy, creating value and
satisfaction for its customers, shareholders and employees.
Federal-Mogul was founded in Detroit in 1899. The company is
headquartered in Southfield, Michigan, and employs nearly 39,000
people in 36 countries.
The Company filed for Chapter 11 protection on October 1, 2001
(Bankr. Del. Case No. 01-10582). Lawrence J. Nyhan Esq., James F.
Conlan, Esq., and Kevin T. Lantry, Esq., at Sidley Austin Brown &
Wood, and Laura Davis Jones, Esq., at Pachulski, Stang, Ziehl &
Jones, P.C., represented the Debtors in their restructuring
efforts. When the Debtors filed for protection from their
creditors, they listed $10.15 billion in assets and $8.86 billion
in liabilities. Federal-Mogul Corp.'s U.K. affiliate, Turner &
Newall, is based at Dudley Hill, Bradford. Peter D. Wolfson,
Esq., at Sonnenschein Nath & Rosenthal; and Charlene D. Davis,
Esq., Ashley B. Stitzer, Esq., and Eric M. Sutty, Esq., at The
Bayard Firm represented the Official Committee of Unsecured
Creditors.
The Debtors' Fourth Amended Plan was confirmed by the Bankruptcy
Court on November 8, 2007, and affirmed by the District Court on
November 14, 2007. Federal-Mogul emerged from Chapter 11 on
December 27, 2007. (Federal-Mogul Bankruptcy News; Bankruptcy
Creditors' Service Inc., http://bankrupt.com/newsstand/or
215/945-7000)
* * *
As reported by the TCR on June 5, 2009, Standard & Poor's Ratings
Services said it has lowered its corporate credit rating on
Federal-Mogul Corp. to 'B+' from 'BB-'. S&P also lowered the
ratings on the company's senior secured debt; the recovery ratings
are unchanged. The outlook is negative. "The ratings reflect
Federal-Mogul's weak business risk profile as
a major participant in the highly competitive global auto
industry, and its aggressive financial risk profile," S&P said.
FEY 240: Disclosure Statement Hearing Continued Until July 14
-------------------------------------------------------------
The U.S. Bankruptcy Court for the Central District of California
has continued until July 14, 2010, at 10:00 a.m., the hearing to
consider approval of the Disclosure Statement explaining Fey 240
North Brand LLC's proposed Plan of Reorganization. The hearing
will be held at 255 E. Temple St. Courtroom 1375 Los Angeles,
California.
As reported in the Troubled Company Reporter on April 8, 2010,
according to the Disclosure Statement, the Plan provides for the
completion of the tenant improvements. The Debtor proposes to pay
creditors from the rental income, sale or refinancing proceeds of
the property. Most likely, under the Plan, holders undisputed
claims can expect payment of their claims. The Debtor is
targeting a July 1, 2010 effective date for the Plan.
A full-text copy of the amended Disclosure Statement is available
for free at http://bankrupt.com/misc/FEY240_AmendedDS.pdf
About Fey 240 North Brand
Pasadena, California-based Fey 240 North Brand LLC, filed for
Chapter 11 on December 4, 2009 (Bankr. C.D. Calif. Case No. 09-
44228). John P. Schock, Esq. at Schock & Schock, alc assists the
Debtor in its restructuring effort. In its petition, the Debtor
listed assets and debts both ranging from $10,000,001 to
$50,000,000.
FLYING J: Comdata Agrees to Pay $9MM to Settle Antitrust Suit
-------------------------------------------------------------
Bankruptcy Law360 reports that Comdata Network Inc. has agreed to
pay $9.07 million to settle an antitrust suit filed by Flying J
Inc., which accused the trucking data management company of
suppressing competition in the market for proprietary trucker fuel
cards.
Flying J, which largely owns TCH LLC, another data management
company for truck stops, filed a motion Monday in the U.S.
Bankruptcy Court for the District of Delaware, according to
Law360.
About Flying J Inc.
Based in Ogden, Utah, Flying J Inc. -- http://www.flyingj.com/--
is among the 20 largest private companies in America, with 2007
sales exceeding $16 billion. The fully integrated oil company
employs approximately 14,700 people in the U.S. and Canada through
its interstate operations, transportation, refining and supply,
exploration and production, as well as its financial services and
communications, divisions.
Flying J and six of its affiliates filed for bankruptcy on
December 22, 2008 (Bankr. D. Del. Lead Case No. 08-13384). Flying
J sought Chapter 11 protections after a precipitous drop in oil
prices and disruption in the credit markets brought to bear
significant short-term pressure on the company's liquidity
position.
Blackstone Advisory Services L.P. is the Debtors' investment
banker and financial advisor. Epiq Bankruptcy Solutions LLC is
the Debtors' notice, claims and balloting agent. In its formal
schedules submitted to the Bankruptcy Court, Flying J listed
assets of $1,433,724,226 and debts of $640,958,656.
An official committee of unsecured creditors has been appointed in
the case. Pachulski Stang Ziehl & Jones LLP has been tapped as
counsel for the creditors' panel.
FOXCO ACQUISITION: Moody's Affirms 'Caa1' Corporate Family Rating
-----------------------------------------------------------------
Moody's Investors Service affirmed the Caa1 corporate family
rating of FoxCo Acquisition Sub LLC and changed the rating outlook
to stable from negative based primarily on expectations for a
better cushion of compliance with bank financial covenants. The
combination of savings from the expiration of expensive
programming contracts and an improved outlook for advertising
spending should facilitate covenant compliance throughout 2011, in
Moody's opinion.
FoxCo Acquisition Sub LLC
-- Affirmed Caa1 Corporate Family Rating
-- Affirmed Caa1 Probability of Default Rating
-- Senior Secured Bank Credit Facility, Affirmed B2, LGD
adjusted to LGD3, 33% from LGD3, 32%
-- Senior Unsecured Bonds, Affirmed Caa3, LGD adjusted to LGD5,
86% from LGD5, 85%
-- Outlook, Changed To Stable From Negative
FoxCo's Caa1 corporate family rating incorporates its still weak
capital structure (evidenced by leverage of approximately 9.7
times debt-to-EBITDA and cash consumption of approximately
$30 million for the trailing twelve months ended March 31, 2010),
which will continue to pose challenges for managing a business
vulnerable to volatile advertising spending cycles. Lack of scale
and concentration with the Fox network also constrain the rating,
although the company benefits from a station portfolio in top DMAs
with leading audience positions. These assets and good margins,
likely to improve as expensive programming contracts expire,
create the capacity to generate strong unlevered cash flow.
However, the company faces continued competition for advertising
dollars related to ongoing media fragmentation.
The stable rating outlook reflects expectations for continued
covenant compliance and modestly positive free cash flow. The
outlook and CFR also assume that by year end 2011, fixed charge
coverage (EBITDA less capital expenditures-to-interest expense)
will trend toward the low 1 times range from below 1 time and that
leverage on a two year average basis will fall below 8 times debt-
to-EBITDA.
The most recent rating action for FoxCo occurred on April 21,
2009, when Moody's downgraded the corporate family rating to Caa1.
Formed in July 2008 through the acquisition of 8 stations from Fox
Television Stations, Inc., FoxCo owns or operates 10 stations in
DMAs that rank from 16 to 58, including seven owned Fox affiliates
and one owned CBS affiliate. Local TV Holdings, LLC, which is 95%
owned by affiliates of Oak Hill Capital Partners, serves as
FoxCo's parent company. The company maintains headquarters in
Fort Wright, Kentucky and its revenue for the trailing twelve
months through March 31, 2010, was approximately $275 million.
FREDDIE MAC: FHFA Directs Delisting of Stock From NYSE
------------------------------------------------------
The Federal Housing Finance Agency has directed Fannie Mae and
Freddie Mac, operating in conservatorship, to delist their common
and preferred stock from the New York Stock Exchange and any other
national securities exchange. Once the delisting is completed,
each Enterprise's common and preferred stock is expected to be
quoted on the Over-the-Counter Bulletin Board.
"FHFA's determination to direct each company to delist does not
constitute any reflection on either Enterprise's current
performance or future direction, nor does delisting imply any
other findings or determination on the part of FHFA as regulator
or conservator," said FHFA Acting Director Edward J. DeMarco. "The
determination to direct delisting is related to stock exchange
requirements for maintaining price levels and curing
deficiencies," Mr. DeMarco said.
Each Enterprise's common stock price has hovered near the New York
Stock Exchange minimum average closing price requirement of $1
over 30 trading days for most months since the conservatorships
were established in September 2008. Most recently, Fannie Mae's
closing stock price has been below the required $1 average price
for the past 30 trading days. Per NYSE rules, a company in that
condition must either drop from the exchange or undertake a `cure'
to restore the stock price above the $1 mark if it does not meet
the NYSE's minimum price requirements. The alternatives for
putting in place such a cure do not assure maintaining the minimum
price level or avoiding loss of shareholder value.
In view of Freddie Mac's share price being close to the $1 mark
and the common situation of both companies operating in
conservatorship with support from the Treasury Department through
the Senior Preferred Stock Purchase Agreements, FHFA has
determined that Freddie Mac should also initiate an orderly
delisting process.
"A voluntary delisting at this time simply makes sense and fits
with the goal of a conservatorship to preserve and conserve
assets," said Mr. DeMarco. Each Enterprise's stock will continue
to trade, but through a different trading mechanism. The
Enterprises remain Securities and Exchange Commission registrants
and subject to applicable federal securities laws.
According to Reuters, in NYSE trading near the open on Wednesday,
Fannie Mae's shares traded around 70 cents, down 28%, and
Freddie's shares were quoted at about $1, down 22%.
The two companies have tapped more than $145 billion combined in
federal aid, and have an open credit line with the Treasury
Department through 2012.
The Federal Housing Finance Agency regulates Fannie Mae, Freddie
Mac and the 12 Federal Home Loan Banks. These government-
sponsored enterprises provide more than $5.9 trillion in funding
for the U.S. mortgage markets and financial institutions.
About Freddie Mac
Based in McLean, Virginia, Freddie Mac (NYSE: FRE)
-- http://www.FreddieMac.com/-- was established by Congress in
1970 to provide liquidity, stability and affordability to the
nation's residential mortgage markets. The Company's
participation in the secondary mortgage market includes providing
its credit guarantee for residential mortgages originated by
mortgage lenders and investing in mortgage loans and mortgage-
related securities. The Company earns management and guarantee
fees for providing its guarantee and performing management
activities (such as ongoing trustee services, administration of
pass-through amounts, paying agent services, tax reporting and
other required services) with respect to issued PCs and Structured
Securities.
Freddie Mac is under conservatorship and is dependent upon the
continued support of Treasury and FHFA to continue operating its
business. The Company received $6.1 billion and $30.8 billion in
June 2009 and March 2009, respectively, pursuant to draw requests
that FHFA submitted to Treasury on the Company's behalf to address
the deficits in the Company's net worth as of March 31, 2009, and
December 31, 2008, respectively. As a result of funding of the
draw requests, the aggregate liquidation preference on the senior
preferred stock owned by Treasury increased from $14.8 billion as
of December 31, 2008, to $51.7 billion on December 31, 2009.
FX LUXURY: Withdraws Prepackaged Liquidation Plan
-------------------------------------------------
Bankruptcy Law360 reports CKX Inc. affiliate FX Luxury Las Vegas I
LLC has withdrawn the prepackaged liquidation plan it filed when
it went bankrupt in April, which some of its creditors had sought
to challenge with their own plan. Law360 relates that FX filed a
notice saying it was withdrawing its plan, which called for its
Las Vegas property to be auctioned, on Monday.
About FX Luxury
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.
GATEWAY CENTER: Case Summary & 5 Largest Unsecured Creditors
------------------------------------------------------------
Debtor: Gateway Center, LLC
P.O. Box 1961
Bloomington, IN 47402
Bankruptcy Case No.: 10-08862
Chapter 11 Petition Date: June 11, 2010
Court: United States Bankruptcy Court
Southern District of Indiana (Indianapolis)
Judge: James K. Coachys
Debtor's Counsel: KC Cohen, Esq.
151 N Delaware St Ste 1104
Indianapolis, IN 46204
Tel: (317) 715-1845
Fax: (317) 916-0406
E-mail: kc@esoft-legal.com
Scheduled Assets: $2,077,003
Scheduled Debts: $3,624,949
A list of the Company's 5 largest unsecured creditors
filed together with the petition is available for free
at http://bankrupt.com/misc/insb10-08862.pdf
The petition was signed by Peter Dvorak, managing member.
Debtor-affiliate that filed separate Chapter 11 petition:
Petition
Debtor Case No. Date
------ -------- ----
Viridian, LLC 09-12241 08/20/09
GENERAL LAND: Section 341(a) Meeting Scheduled for July 7
---------------------------------------------------------
The U.S. Trustee for Region 1 will convene a meeting of General
Land Corporation's creditors on July 7, 2010, at 12:30 p.m. The
meeting will be held at Suite 1055, U.S. Trustee's Office, John W.
McCormack Federal Building, 5 Post Office Square, 10th Floor,
Boston, MA 02109-3934.
This is the first meeting of creditors required under Section
341(a) of the U.S. Bankruptcy Code in all bankruptcy cases.
All creditors are invited, but not required, to attend. This
Meeting of Creditors offers the one opportunity in a bankruptcy
proceeding for creditors to question a responsible office of the
Debtor under oath about the company's financial affairs and
operations that would be of interest to the general body of
creditors.
Boston, Massachusetts-based General Land Corporation filed for
Chapter 11 bankruptcy protection on June 4, 2010 (Bankr. D. Mass.
Case No. 10-16174). Harold B. Murphy, Esq., at Hanify & King, P.
C., assists the Company on its restructuring effort. The Company
listed $1,000,001 to $10,000,000 in assets and $100,000,001 to
$500,000,000 in liabilities.
GENERAL MOTORS: New GM Recalls 1.5MM Units for Wiper Fire Hazard
----------------------------------------------------------------
For safety reasons, General Motors is recalling 1.5 million of its
vehicles due to a heated windshield washer fluid that could ignite
and may cause fire, the Detroit Free Press reported.
GM says that the vehicles installed with the flawed system are the
2006-09 model-year Buick Lucerne, Cadillac DTS, Hummer H2; the
2008-09 model-year Buick Enclave and Cadillac CTS; the 2007-09
model-year Cadillac Escalade, Escalade ESV, Escalade EXT,
Chevrolet Avalanche, Silverado, Suburban, Tahoe, GMC Acadia,
Sierra, Yukon, Yukon XL, Saturn Outlook and the 2009 Chevrolet
Traverse.
According to the Detroit Free Press, GM said that the vehicles'
wiper system had been connected to five incidents of fire. No
reports of injuries or vehicle crashes have been reported. The
system, produced by Micro-Heat known as the HotShot had been
recalled two years ago for fire-related incidents. GM had
subsequently withheld its payments to Micro-Heat.
GM is offering $100 to the owners of recalled vehicles as
compensation. GM also directed its dealers to fix the problem and
to set up new connections and reroute hoses, as Micro-Heat no
longer exist and it can no longer improve its faulty design, the
Detroit Free Press said.
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: New GM to Reinstate Cut Dealers
-----------------------------------------------
General Motors saves the fates of 900 dealerships across the
United States as it had decided to preserve these outlets, now
believing that closing these establishments will not make a big
impact in bringing the automaker back to profits, the Associated
Press said.
The automaker will wind up with about 5,000 U.S. dealers in July,
up from original plans for 4,100, Mark Reuss, GM's North America
president, told The Associated Press.
"Everyone's pretty excited," said Bob Kapp, new car manager at
Allen Chevrolet Cadillac in Monroe, Mich., which learned in April
that it would be reinstated as a GM dealer and plans to hire 10 to
12 people as business picks up. "It was tough there for a while,"
Mr. Kapp told AP.
GM would not tell the number of jobs that the reinstatement of the
dealerships may also save, but according to the National
Automobile Dealers Association, an average new-car dealership
employs about 50 people, AP said.
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)
GRAMERCY CAPITAL: Completes Exchange of Remaining Notes
-------------------------------------------------------
Gramercy Capital Corp. has redeemed $52.5 million of junior
subordinated notes due June 30, 2035 issued by its operating
partnership subsidiary. Gramercy completed the transaction by
transferring to the noteholders an equivalent par value amount of
various classes of bonds issued by affiliates Gramercy Real Estate
CDO 2005-1, Gramercy Real Estate CDO 2006-1 and Gramercy Real
Estate CDO 2007-1, previously purchased by the Company in the open
market, and cash equivalents of $5.0 million. In October 2009,
the Company settled an exchange of $97.5 million of junior
subordinated notes for an equivalent par amount of CDO bonds.
This redemption eliminates the Company's junior subordinated notes
from its consolidated financial statements, which had an original
balance of $150.0 million.
About Gramercy Capital
Headquartered in New York City, Gramercy Capital Corp. is a self-
managed integrated commercial real estate finance and property
investment company whose Gramercy Finance division focuses on the
direct origination and acquisition of whole loans, subordinate
interests in whole loans, mezzanine loans, preferred equity,
commercial mortgage-backed security and other real estate
securities, and whose Gramercy Realty division targets commercial
properties leased primarily to financial institutions and
affiliated users throughout the United States.
* * *
As reported in the Troubled Company Reporter on December 9, 2009,
Gramercy Capital Corp. has entered into a termination agreement
with Wachovia Bank, National Association, or Wachovia, as
administrative agent, to settle and satisfy in full a pre-existing
loan obligation of approximately $44.5 million under its secured
term loan, credit facility and related guarantees.
GROVELAND ESTATES: Case Dismissed for Guidelines Non-Compliance
---------------------------------------------------------------
The Hon. Arthur B. Briskman of the U.S. Bankruptcy Court for the
Middle District of Florida dismissed the Chapter 11 case of
Groveland Estates, LLC.
As reported in the Troubled Company Reporter on February 24, 2010,
Donald F. Walton, U.S. Trustee for Region 21, sought for the
dismissal of the case because the Debtor failed to comply with the
U.S. Trustee Guidelines for Chapter 11 Debtors-in-possession.
The Court ordered that the Debtor cannot file a bankruptcy for two
years, and that no party may commence a bankruptcy involving 17200
Villa City Road, Groveland, Florida, during the same period,
absent a leave of the Court.
Groveland, Florida-based Groveland Estates, LLC, filed for Chapter
11 bankruptcy protection on December 3, 2009 (Bankr. M.D. Fla.
Case No. 09-18492). Aldo G. Bartolone, Jr., Esq., at Consumer Law
Group LLP, 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.
I.D. INTERACTIVE: Case Summary & 20 Largest Unsecured Creditors
---------------------------------------------------------------
Debtor: I.D. Interactive, LLC
1801 S. Federal Highway
Suite 300
Delray Beach, FL 33483
Tel: (561) 209-2309
Bankruptcy Case No.: 10-26493
Chapter 11 Petition Date: June 11, 2010
Court: United States Bankruptcy Court
Southern District of Florida (West Palm Beach)
Judge: Paul G. Hyman, Jr.
Debtor's Counsel: Tina M. Talarchyk, Esq.
505 South Flagler Dr #300
West Palm Beach, FL 33401
Tel: (561) 472-2971
Fax: (561) 472-2122
E-mail: ttalarchyk@mcdonaldhopkins.com
Scheduled Assets: $3,126,191
Schedule Debts: $17,647,035
A list of the Company's 20 largest unsecured creditors
filed together with the petition is available for free
at http://bankrupt.com/misc/flsb10-26493.pdf
The petition was signed by Jon D. Goldstein, managing member.
IMPERIAL CAPITAL: Wants September 16 Extension for Plan Filing
--------------------------------------------------------------
Imperial Capital Bancorp, Inc., asks the U.S. Bankruptcy Court for
the Southern District of California to extend its exclusive
periods to file and solicit acceptances for the proposed
Chapter 11 Plan until September 16, 2010, and November 13, 2010,
respectively.
The Debtor's initial plan filing period will expire on June 18.
This is the Debtor's second request for an exclusivity extension.
The Debtor needs additional time to further explore and resolve
contingencies prior to the finalization of any proposed Plan or
Disclosure Statement.
La Jolla, California-based Imperial Capital Bancorp, Inc., filed
for Chapter 11 bankruptcy protection on December 18, 2009 (Bankr.
S.D. Calif. Case No. 09-19431). Gregory K. Jones, Esq., at
Stutman, Treister & Glatt, P.C., 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.
INFOLOGIX INC: To Sell Touch Screen Systems for $2.2 Million
------------------------------------------------------------
InfoLogix Inc. entered into a patent purchase agreement to sell
its U.S. and South Korean patents titled "Touch Screen Systems and
Methods" and to assign certain related rights to Intellectual
Ventures Fund 68 LLC for $2.2 million. The effective date of the
Agreement is June 3, 2010, and contains customary representations,
warranties and covenants. The Company expects the sale of the
patents and assignment of related rights to close within 30 days
of the Effective Date.
At Closing, IVF will grant the Company a royalty-free, non-
exclusive, non-sublicensable, non-transferable right and license
to practice the methods covered by the patents and to make, use,
distribute, lease, sell, offer for sale, import, export, develop
and otherwise dispose of and exploit any of the Company's products
covered by the patents.
About InfoLogix Inc.
Based in Hatboro, Pennsylvania, InfoLogix, Inc. (NASDAQ: IFLG) --
http://www.infologix.com/-- provides end-to-end solutions for
electronic medical record and supply chain implementation and
mobilization, with experience in over 2,200 hospitals and
businesses nationwide. InfoLogix assists its healthcare and
commercial customers by implementing and optimizing EMR and SCM
systems, offers mobility to caregivers and workforces by making
data accessible directly at the point of care or point of
activity, and manages operations with services to improve clinical
and financial performance and supply chain with services to drive
greater efficiency.
The Company's balance sheet at March 31, 2010, showed
$34.0 million in total assets and $39.0 million in total
liabilities, for a total stockholders' deficit of $4.9 million.
McGladrey & Pullen, LLP, in Blue Bell, Pa., expressed substantial
doubt about the Company's ability to continue as a going concern.
The independent auditors noted that the Company has suffered
recurring losses from operations, has negative working capital and
an accumulated deficit as of December 31, 2009.
INNATECH LLC: Court Denies Sale of Real Property to Creditor
------------------------------------------------------------
The Hon. Thomas J. Tucker of the U.S. Bankruptcy Court for the
Eastern District of Michigan, in a bench order, denied the sale of
the real property to Theodore W. Brickman, Jr., a secured
creditor. Mr. Brickman submitted an offer to purchase the real
property on terms that included a credit bid.
The Official Committee of Unsecured Creditors objected to the sale
motion.
The denial is without prejudice to the Debtor's right to renew the
aspect of the sale motion in the future, after the Debtor made
further, good faith efforts to market the real property.
About Innatech LLC
Headquartered in Rochester, Michigan, Innatech LLC, dba Dynamic,
manufactures and designs "highly-engineered injection molded
components and assemblies." Innatech's are sold to Tier I and
Tier II automotive suppliers and to customers in the packaging,
office furniture, appliances, household goods, toys, and personal
care markets. Innatech employs almost 150 people at three
facilities located in Michigan, Indiana and Ohio.
The Company filed for Chapter 11 bankruptcy protection on
March 23, 2010 (Bankr. E.D. Mich. Case No. 10-49380). Robert D.
Gordon, Esq., who has an office in Birmingham, Michigan, assists
the Company in its restructuring effort. The Company estimated
its assets and debts at $10,000,001 to $50,000,000.
INNATECH LLC: Has Access to Bridge Healthcare Cash Collateral
-------------------------------------------------------------
The Hon. Thomas J. Tucker of the U.S. Bankruptcy Court for the
Eastern District of Michigan, in a final order, authorized
Innatech LLC, to use certain cash collateral of Bridge Healthcare
Finance, LLC, as agent and sole lender under the prepetition
documents.
As of the petition date, the Debtor is liable for payment of the
prepetition debt amounting to not less than $6,800,000. The
Debtor would use the cash collateral to fund its daily operations.
The agent consented of to the use of the cash collateral in its
business operations.
As adequate protection for any diminution in value of the lender's
collateral, the Debtors will grant the agent replacement lien on
the Debtor's assets and superpriority administrative expense
claim, subject to carve out.
In consideration of the interests of the Elder Partners in the
prepetition collateral, the Elder Partners is granted junior
replacement liens in the prepetition collateral, which liens are
valid, binding, enforceable and fully perfected and will be junior
and subordinate only to the prepetition liens, replacement liens,
and permitted priority liens.
About Innatech LLC
Headquartered in Rochester, Michigan, Innatech LLC, dba Dynamic,
manufactures and designs "highly-engineered injection molded
components and assemblies." Innatech's are sold to Tier I and
Tier II automotive suppliers and to customers in the packaging,
office furniture, appliances, household goods, toys, and personal
care markets. Innatech employs almost 150 people at three
facilities located in Michigan, Indiana and Ohio.
The Company filed for Chapter 11 bankruptcy protection on
March 23, 2010 (Bankr. E.D. Mich. Case No. 10-49380). Robert D.
Gordon, Esq., who has an office in Birmingham, Michigan, assists
the Company in its restructuring effort. The Company estimated
its assets and debts at $10,000,001 to $50,000,000.
INNOVATIVE COMPANIES: Can Reject Leases and Abandon Property
------------------------------------------------------------
The Hon. Dorothy Eisenberg of the U.S. Bankruptcy Court for the
Eastern District of New York authorized Innovative Companies LLC,
nka OLD TIC LLC, et al., to:
i) reject their interests in certain unexpired leases of non-
residential real property; and
ii) abandon their remaining personal property and equipment
located at the premises, and turn over possession of the
premises to the landlords.
Headquartered in Hauppauge, New York, The Innovative Companies LLC
and its affiliates filed for Chapter 11 protection on April 17,
2009 (Bankr. E.D.N.Y. Lead Case No. 09-72669). Leslie A. Berkoff,
Esq., at Moritt Hock Hamroff Horowitz LLP, represents the Debtors
in their restructuring efforts. David M. Banker, Esq., at
Lowenstein Sandler PC, represents the official committee of
unsecured creditors as counsel. In its petition, the Company
listed between $10 million and $50 million each in assets and
debts.
INTEGRITY BANCSHARES: Appeals Court Rejects Trustee's Bid
---------------------------------------------------------
A federal appeals court has upheld a decision to throw out a case
brought by the Chapter 7 trustee for Integrity Bancshares Inc.,
parent of the failed Integrity Bank, against officers of both
companies over alleged mismanagement and risky lending practices,
Bankruptcy Law360 reports. According to Law360, a three-judge
panel of the U.S. Court of Appeals for the Eleventh Circuit handed
down a ruling Monday rejecting Chapter 7 Trustee Jordan Lubin's
challenge to a district court's decisions.
About Integrity Bancshares
Integrity Bancshares, Inc., is an Atlanta-based bank holding
company. Integrity's wholly-owned subsidiary, Integrity Bank was
a full service independent community bank. On August 29, 2008,
the Bank went into receivership and its assets were taken over by
the FDIC. Integrity Bancshares filed a voluntary Chapter 7
petition (Bankr. N.D. Ga. Case No. 08-80512) on October 13, 2008.
On February 3, 2009, Jordan E. Lubin, the Chapter 7 Trustee, sued
(Bankr. N.D. Ga. Adv. Pro. No. 09-06057) Steven M. Skow, Suzanne
Long, Douglas G. Ballard, II, and Robert F. Skeen, III, who are
former directors and officers of Integrity. The Trustee seeks
damages against the Individual Defendants for breaches of
fiduciary duties, negligence, and attorney's fees. Prior to the
assets of the Bank being taken over by the FDIC, Integrity
purchased a D&O liability policy from Cincinnati Insurance Company
providing liability coverage for certain claims against the
Individual Defendants. On February 3, 2009, the Trustee filed a
declaratory judgment action (N.D. Ga Case No. 09-cv-1156) seeking
to determine Integrity's rights with respect to the coverage
provided by the Policy. On March 5, 2009, the Defendants filed a
Motion to Withdraw the Reference, and on April 29, 2009, the
Defendants filed a Renewed Motion to Withdraw the Reference. In
the interval between the Defendants' two motions to withdraw, the
FDIC filed a motion to intervene in the adversary proceeding.
Contemporaneously with filing the Motion to Withdraw Reference,
Defendants filed a Jury Demand, a Motion to Dismiss, a Motion to
Stay, and a Motion to Consolidate the declaratory judgment action
with the adversary proceeding.
In the District Court, the Honorable Richard W. Story ruled that
everything related to the D&O litigation should be withdrawn from
the Bankruptcy Court and consolidated in the District Court.
The Chapter 7 Trustee is represented by:
Jay Daniel Brownstein, Esq.
Brownstein Nguyen & Little LLP
2010 Montreal Road
Tucker, GA 30084
Telephone: (770) 458-9060
- and -
Kevin S. Little, Esq.
Brownstein Nguyen & Little LLP
1201 Peachtree Street N.E.
400 Colony Square, Suite 200
Atlanta, GA 30361
Telephone: (404) 685-1662
KASDEN FUEL: Case Summary & 15 Largest Unsecured Creditors
----------------------------------------------------------
Debtor: The Kasden Fuel Company
340 Tolland Street
East Hartford, CT 06108
Bankruptcy Case No.: 10-21973
Chapter 11 Petition Date: June 11, 2010
Court: United States Bankruptcy Court
District of Connecticut (Hartford)
Judge: Albert S. Dabrowski
Debtor's Counsel: Jon P. Newton, Esq.
Reid & Riege
One Financial Plaza
Hartford, CT 06103
Tel: (860) 278-1150
E-mail: jnewton@reidandriege.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 15 largest unsecured creditors
filed together with the petition is available for free
at http://bankrupt.com/misc/ctb10-21973.pdf
The petition was signed by Bruce J. Deitch, company's president.
KERLING PLC: S&P Raises Long-term Corporate Credit Rating to 'B'
----------------------------------------------------------------
Standard & Poor's Ratings Services said that it raised to 'B' from
'B-' its long-term corporate credit rating on U.K.-based PVC
producer Kerling PLC, following a similar action on sister-company
Ineos Group Holdings PLC. At the same time, S&P removed all
ratings from CreditWatch where they had been placed on April 30,
2010. The outlook is stable.
Mirroring the one-notch upgrade on the corporate credit rating,
S&P has raised the issue ratings on the EUR100 million senior
secured revolving credit facility to 'BB-' from 'B+', and the
issue ratings on the EUR785 million senior secured fixed-rate
notes to 'B' from 'B-'. The respective recovery ratings remain
unchanged at '1' and '3'.
"The rating on Kerling reflects its highly leveraged financial
risk profile and fair business risk profile," said Standard &
Poor's credit analyst Lucas Sevenin.
Kerling reported sales of EUR1.7 billion in 2009 and an EBITDA of
about EUR175 million, translating into a 10% margin.
LEHMAN BROTHERS: Bennett Sues LBHI for Contract Breach
------------------------------------------------------
Margaret Bennett, also known as Malgorzata Bennett, filed an
action against Lehman Brothers Holdings, Inc., in the State
Supreme Court, County of New York, alleging that LBHI breached
two employment contracts entered with Ms. Bennett. The
employment contracts were signed after LBHI's Petition Date.
LBHI filed a notice seeking for the removal of the action from
the state court to the U.S. District Court for the Southern
District of New York (Foley Square), and upon its removal,
further remove the action to the U.S. Bankruptcy Court for the
Southern District of New York in the Chapter 11 case of LBHI.
Robert Holtzman, Esq., at Kramer Levin Naftalis & Frankel LLP, in
New York, counsel to LBHI, asserted that the bankruptcy court has
core jurisdiction, pursuant to Section 157(b)(2)(A) of Title 28
of the U.S. Code, over contract claims under state law when the
contract was entered into postpetition. The adjudication of
those claims, he said, is an essential part of administering the
estate.
Mr. Holtzman argued that, alternatively, the Removed Action is
"related to" the bankruptcy pursuant to Section 1334 and,
therefore, is removable pursuant to Section 1452. A case is
"related to" a bankruptcy case if the resolution of that case
"could conceivably have any effect on the estate being
administered in bankruptcy," he asserted, citing In re Pacor,
Inc. v. Higgins, 743 F.2d 984, 994 (3d Cir. 1984).
About Lehman Brothers
Lehman Brothers Holdings Inc. -- http://www.lehman.com/-- was the
fourth largest investment bank in the United States. For more
than 150 years, Lehman Brothers has been a leader in the global
financial markets by serving the financial needs of corporations,
governmental units, institutional clients and individuals
worldwide.
Lehman Brothers filed for Chapter 11 bankruptcy September 15, 2008
(Bankr. S.D.N.Y. Case No. 08-13555). Lehman's bankruptcy petition
listed US$639 billion in assets and US$613 billion in debts,
effectively making the firm's bankruptcy filing the largest in
U.S. history. Several other affiliates followed thereafter.
The Debtors' bankruptcy cases are handled by Judge James M. Peck.
Harvey R. Miller, Esq., Richard P. Krasnow, Esq., Lori R. Fife,
Esq., Shai Y. Waisman, Esq., and Jacqueline Marcus, Esq., at Weil,
Gotshal & Manges, LLP, in New York, represent Lehman. Epiq
Bankruptcy Solutions serves as claims and noticing agent.
On September 19, 2008, the Honorable Gerard E. Lynch, Judge of the
U.S. District Court for the Southern District of New York, entered
an order commencing liquidation of Lehman Brothers, Inc., pursuant
to the provisions of the Securities Investor Protection Act (Case
No. 08-CIV-8119 (GEL)). James W. Giddens has been appointed as
trustee for the SIPA liquidation of the business of LBI
The Bankruptcy Court has approved Barclays Bank Plc's purchase
of Lehman Brothers' North American investment banking and
capital markets operations and supporting infrastructure for
US$1.75 billion. Nomura Holdings Inc., the largest brokerage
house in Japan, purchased LBHI's operations in Europe for US$2
plus the retention of most of employees. Nomura also bought
Lehman's operations in the Asia Pacific for US$225 million.
International Operations Collapse
Lehman Brothers International (Europe), the principal UK trading
company in the Lehman group, was placed into administration,
together with Lehman Brothers Ltd, LB Holdings PLC and LB UK RE
Holdings Ltd. Tony Lomas, Steven Pearson, Dan Schwarzmann and
Mike Jervis, partners at PricewaterhouseCoopers LLP, have been
appointed as joint administrators to Lehman Brothers International
(Europe) on September 15, 2008. The joint administrators have
been appointed to wind down the business.
Lehman Brothers Japan Inc. and Lehman Brothers Holdings Japan Inc.
filed for bankruptcy in the Tokyo District Court on September 16.
Lehman Brothers Japan Inc. reported about JPY3.4 trillion
(US$33 billion) in liabilities in its petition.
Bankruptcy Creditors' Service, Inc., publishes Lehman Brothers
Bankruptcy News. The newsletter tracks the Chapter 11 proceeding
undertaken by Lehman Brothers Holdings, Inc., and other insolvency
and bankruptcy proceedings undertaken by its affiliates.
(http://bankrupt.com/newsstand/or 215/945-7000)
LEHMAN BROTHERS: FCIC Mulls Deeper Probe on JPM
-----------------------------------------------
The Financial Crisis Inquiry Commission is deciding if it should
take a deeper look into allegations that JPMorgan Chase Bank N.A.
demanded Lehman Brothers Holdings Inc. to turn over billions of
dollars to the firm prior to the company's bankruptcy filing,
according to a report by FoxBusiness.
"The committee has tons of information on Lehman, lots of stuff
on JPMorgan and is very much aware of this issue," FoxBusiness
quoted a person with direct knowledge of the matter as saying.
"The question is, will this become part of its broader probe and
that has yet to be decided."
Earlier, LBHI filed a lawsuit in the U.S. Bankruptcy Court for
the Southern District of New York against JPMorgan, accusing the
firm of using its position as primary clearing bank to the
company's broker-dealer unit to extract billions of dollars
including $5 billion in cash on the final business day.
The lawsuit seeks to recover as much as $8.6 billion that
JPMorgan allegedly seized as collateral.
FCIC spokesman Tucker Warren did not confirm nor deny the
commission's interest in the matter, the report said.
A JPMorgan spokeswoman did not comment on the FCIC's plans but
the firm has denied culpability in LBHI's collapse, and recently
said the allegations in the lawsuit were "meritless."
Many investment bankers believe that JPMorgan should have been
less heavy-handed with LBHI because by demanding so much money up
front, it depleted the company of needed cash and caused its
other creditors to demand collateral and stop lending to the
company, FoxBusiness reported.
About Lehman Brothers
Lehman Brothers Holdings Inc. -- http://www.lehman.com/-- was the
fourth largest investment bank in the United States. For more
than 150 years, Lehman Brothers has been a leader in the global
financial markets by serving the financial needs of corporations,
governmental units, institutional clients and individuals
worldwide.
Lehman Brothers filed for Chapter 11 bankruptcy September 15, 2008
(Bankr. S.D.N.Y. Case No. 08-13555). Lehman's bankruptcy petition
listed US$639 billion in assets and US$613 billion in debts,
effectively making the firm's bankruptcy filing the largest in
U.S. history. Several other affiliates followed thereafter.
The Debtors' bankruptcy cases are handled by Judge James M. Peck.
Harvey R. Miller, Esq., Richard P. Krasnow, Esq., Lori R. Fife,
Esq., Shai Y. Waisman, Esq., and Jacqueline Marcus, Esq., at Weil,
Gotshal & Manges, LLP, in New York, represent Lehman. Epiq
Bankruptcy Solutions serves as claims and noticing agent.
On September 19, 2008, the Honorable Gerard E. Lynch, Judge of the
U.S. District Court for the Southern District of New York, entered
an order commencing liquidation of Lehman Brothers, Inc., pursuant
to the provisions of the Securities Investor Protection Act (Case
No. 08-CIV-8119 (GEL)). James W. Giddens has been appointed as
trustee for the SIPA liquidation of the business of LBI
The Bankruptcy Court has approved Barclays Bank Plc's purchase
of Lehman Brothers' North American investment banking and
capital markets operations and supporting infrastructure for
US$1.75 billion. Nomura Holdings Inc., the largest brokerage
house in Japan, purchased LBHI's operations in Europe for US$2
plus the retention of most of employees. Nomura also bought
Lehman's operations in the Asia Pacific for US$225 million.
International Operations Collapse
Lehman Brothers International (Europe), the principal UK trading
company in the Lehman group, was placed into administration,
together with Lehman Brothers Ltd, LB Holdings PLC and LB UK RE
Holdings Ltd. Tony Lomas, Steven Pearson, Dan Schwarzmann and
Mike Jervis, partners at PricewaterhouseCoopers LLP, have been
appointed as joint administrators to Lehman Brothers International
(Europe) on September 15, 2008. The joint administrators have
been appointed to wind down the business.
Lehman Brothers Japan Inc. and Lehman Brothers Holdings Japan Inc.
filed for bankruptcy in the Tokyo District Court on September 16.
Lehman Brothers Japan Inc. reported about JPY3.4 trillion
(US$33 billion) in liabilities in its petition.
Bankruptcy Creditors' Service, Inc., publishes Lehman Brothers
Bankruptcy News. The newsletter tracks the Chapter 11 proceeding
undertaken by Lehman Brothers Holdings, Inc., and other insolvency
and bankruptcy proceedings undertaken by its affiliates.
(http://bankrupt.com/newsstand/or 215/945-7000)
LEHMAN BROTHERS: Keeney Sues LBHI for Title Dispute
---------------------------------------------------
Jonathan Keeney filed an adversary proceeding against Lehman
Brothers Holdings, Inc., demanding the U.S. Bankruptcy Court for
the Southern District of New York to:
(a) declare and determine that he is the rightful holder of
title to the property he bought located at 2533 Easter
Avenue, in Baltimore, Maryland, from William Henry Christ
in August 2003, and that LBHI be declared to have no
estate, right, title or interest in the Property;
(b) compel LBHI to execute legal documents for recording on
the land records as are reasonably necessary so that the
land records reflect that all right, title and interest in
the Property is with him;
(c) enjoin LBHI from claiming any estate, right, title or
interest in the Property; and
(d) reward him reasonable attorneys' fees, filing fees and
costs of the lawsuit.
According to Thomas D. Goldberg, Esq., at Day Pitney LLP, in
Stamford, Connecticut, Lehman Capital, a division of LBHI,
improperly recorded a deed for the Property on September 2, 2003.
Recently, Mr. Keeney attempted to sell the Property to a third
party but was unable to do so because of the deed recorded by
Lehman Capital.
Thus, Mr. Keeney seeks an order quieting title on the Property,
declaring him as its sole and rightful owner.
About Lehman Brothers
Lehman Brothers Holdings Inc. -- http://www.lehman.com/-- was the
fourth largest investment bank in the United States. For more
than 150 years, Lehman Brothers has been a leader in the global
financial markets by serving the financial needs of corporations,
governmental units, institutional clients and individuals
worldwide.
Lehman Brothers filed for Chapter 11 bankruptcy September 15, 2008
(Bankr. S.D.N.Y. Case No. 08-13555). Lehman's bankruptcy petition
listed US$639 billion in assets and US$613 billion in debts,
effectively making the firm's bankruptcy filing the largest in
U.S. history. Several other affiliates followed thereafter.
The Debtors' bankruptcy cases are handled by Judge James M. Peck.
Harvey R. Miller, Esq., Richard P. Krasnow, Esq., Lori R. Fife,
Esq., Shai Y. Waisman, Esq., and Jacqueline Marcus, Esq., at Weil,
Gotshal & Manges, LLP, in New York, represent Lehman. Epiq
Bankruptcy Solutions serves as claims and noticing agent.
On September 19, 2008, the Honorable Gerard E. Lynch, Judge of the
U.S. District Court for the Southern District of New York, entered
an order commencing liquidation of Lehman Brothers, Inc., pursuant
to the provisions of the Securities Investor Protection Act (Case
No. 08-CIV-8119 (GEL)). James W. Giddens has been appointed as
trustee for the SIPA liquidation of the business of LBI
The Bankruptcy Court has approved Barclays Bank Plc's purchase
of Lehman Brothers' North American investment banking and
capital markets operations and supporting infrastructure for
US$1.75 billion. Nomura Holdings Inc., the largest brokerage
house in Japan, purchased LBHI's operations in Europe for US$2
plus the retention of most of employees. Nomura also bought
Lehman's operations in the Asia Pacific for US$225 million.
International Operations Collapse
Lehman Brothers International (Europe), the principal UK trading
company in the Lehman group, was placed into administration,
together with Lehman Brothers Ltd, LB Holdings PLC and LB UK RE
Holdings Ltd. Tony Lomas, Steven Pearson, Dan Schwarzmann and
Mike Jervis, partners at PricewaterhouseCoopers LLP, have been
appointed as joint administrators to Lehman Brothers International
(Europe) on September 15, 2008. The joint administrators have
been appointed to wind down the business.
Lehman Brothers Japan Inc. and Lehman Brothers Holdings Japan Inc.
filed for bankruptcy in the Tokyo District Court on September 16.
Lehman Brothers Japan Inc. reported about JPY3.4 trillion
(US$33 billion) in liabilities in its petition.
Bankruptcy Creditors' Service, Inc., publishes Lehman Brothers
Bankruptcy News. The newsletter tracks the Chapter 11 proceeding
undertaken by Lehman Brothers Holdings, Inc., and other insolvency
and bankruptcy proceedings undertaken by its affiliates.
(http://bankrupt.com/newsstand/or 215/945-7000)
LEHMAN BROTHERS: Valukas Charges $20 Million in Fees
----------------------------------------------------
Nine professionals retained in Lehman Brothers' bankruptcy cases
seek the Court for the interim and monthly allowance of their
application for payment of fees and reimbursement of their
expenses:
A. Debtors' Professionals
Professional Period Fees Expenses
------------ ------ -------- --------
Anton R. Valukas and 10/01/09- $20,604,413 $3,014,481
Jenner & Block LLP 01/31/10
McKenna Long & Aldridge 10/01/09- $813,049 $92,211
LLP 01/31/10
Pachulski Stang Ziehl 10/01/09- $454,706 $6,844
& Jones LLP 01/31/10
Huron Consulting Group 10/01/09- $141,553 $27,047
01/31/10
Simpson Thacher & 10/01/09- $213,661 $1,086
Bartlett LLP 01/31/10
The O'Neil Group, LLC 01/06/10- $7,776 $1,936
01/31/10
B. Official Committee of Unsecured Creditors' Professionals
Professional Period Fees Expenses
------------ ------ -------- --------
Milbank, Tweed & Hadley 10/01/09- $13,595,778 $451,410
& McCloy LLP 01/31/10
Quinn Emanuel Urquhart 10/01/09- $2,829,628 $191,748
& Sullivan, LLP 01/31/10
C. Anton R. Valukas, Court-appointed Examiner's Professionals
Professional Period Fees Expenses
------------ ------ -------- --------
Duff & Phelps LLC 10/01/09- $17,090,309 $346,491
01/31/10
About Lehman Brothers
Lehman Brothers Holdings Inc. -- http://www.lehman.com/-- was the
fourth largest investment bank in the United States. For more
than 150 years, Lehman Brothers has been a leader in the global
financial markets by serving the financial needs of corporations,
governmental units, institutional clients and individuals
worldwide.
Lehman Brothers filed for Chapter 11 bankruptcy September 15, 2008
(Bankr. S.D.N.Y. Case No. 08-13555). Lehman's bankruptcy petition
listed US$639 billion in assets and US$613 billion in debts,
effectively making the firm's bankruptcy filing the largest in
U.S. history. Several other affiliates followed thereafter.
The Debtors' bankruptcy cases are handled by Judge James M. Peck.
Harvey R. Miller, Esq., Richard P. Krasnow, Esq., Lori R. Fife,
Esq., Shai Y. Waisman, Esq., and Jacqueline Marcus, Esq., at Weil,
Gotshal & Manges, LLP, in New York, represent Lehman. Epiq
Bankruptcy Solutions serves as claims and noticing agent.
On September 19, 2008, the Honorable Gerard E. Lynch, Judge of the
U.S. District Court for the Southern District of New York, entered
an order commencing liquidation of Lehman Brothers, Inc., pursuant
to the provisions of the Securities Investor Protection Act (Case
No. 08-CIV-8119 (GEL)). James W. Giddens has been appointed as
trustee for the SIPA liquidation of the business of LBI
The Bankruptcy Court has approved Barclays Bank Plc's purchase
of Lehman Brothers' North American investment banking and
capital markets operations and supporting infrastructure for
US$1.75 billion. Nomura Holdings Inc., the largest brokerage
house in Japan, purchased LBHI's operations in Europe for US$2
plus the retention of most of employees. Nomura also bought
Lehman's operations in the Asia Pacific for US$225 million.
International Operations Collapse
Lehman Brothers International (Europe), the principal UK trading
company in the Lehman group, was placed into administration,
together with Lehman Brothers Ltd, LB Holdings PLC and LB UK RE
Holdings Ltd. Tony Lomas, Steven Pearson, Dan Schwarzmann and
Mike Jervis, partners at PricewaterhouseCoopers LLP, have been
appointed as joint administrators to Lehman Brothers International
(Europe) on September 15, 2008. The joint administrators have
been appointed to wind down the business.
Lehman Brothers Japan Inc. and Lehman Brothers Holdings Japan Inc.
filed for bankruptcy in the Tokyo District Court on September 16.
Lehman Brothers Japan Inc. reported about JPY3.4 trillion
(US$33 billion) in liabilities in its petition.
Bankruptcy Creditors' Service, Inc., publishes Lehman Brothers
Bankruptcy News. The newsletter tracks the Chapter 11 proceeding
undertaken by Lehman Brothers Holdings, Inc., and other insolvency
and bankruptcy proceedings undertaken by its affiliates.
(http://bankrupt.com/newsstand/or 215/945-7000)
LEXINGTON PRECISION: May Use Prepetition Secured Lenders' Cash
--------------------------------------------------------------
The Hon. Shelley C. Chapman of the U.S. Bankruptcy Court for the
Southern District of New York, in a bridge order, extended
Lexington Precision Corp., et al.'s use of their prepetition
secured lenders' cash collateral until the time the Court enters
an order resolving the Debtors' 11th cash collateral order.
Headquartered in New York, Lexington Precision Corp. --
http://www.lexingtonprecision.com/-- manufactures tight-tolerance
rubber and metal components for use in medical, automotive, and
industrial applications. As of February 29, 2008, the Company
employed about 651 regular and 22 temporary personnel.
The Company and its affiliate, Lexington Rubber Group Inc., filed
for Chapter 11 protection on April 1, 2008 (Bankr. S.D.N.Y. Lead
Case No.08-11153). Christopher J. Marcus, Esq., and Victoria
Vron, Esq., at Weil, Gotshal & Manges, represent the Debtors in
their restructuring efforts. The Debtors selected Epiq Systems -
Bankruptcy Solutions LLC as claims agent. The U.S. Trustee for
Region 2 appointed six creditors to serve on an official committee
of unsecured creditors. Paul N. Silverstein, Esq., and Jonathan
Levine, Esq., at Andrews Kurth LLP, represent the Committee as
counsel.
On June 30, 2008, the Debtors filed with the Bankruptcy Court a
plan of reorganization. It was amended twice, the latest
amendment dated December 8, 2008. The Debtors currently plan to
complete the liquidation of their connector-seal business before
seeking approval of the Amended Plan.
LOCAL TV: Moody's Upgrades Corporate Family Rating to 'Caa1'
------------------------------------------------------------
Moody's Investors Service upgraded the corporate family rating and
probability of default rating for Local TV Finance LLC, each to
Caa1 from Caa2, based on expectations for improved credit metrics
due to the recently announced station acquisition and better than
expected operating performance. The company can fund the
acquisition and modest related expenses from balance sheet cash
without materially depleting its strong liquidity position, and
Moody's anticipate the incremental cash flow will over time
contribute to ongoing declines in financial leverage.
Moody's also upgraded instrument ratings as shown below, and the
rating outlook is now stable. A summary of the actions follows.
Local TV Finance, LLC
-- Probability of Default Rating, Upgraded to Caa1 from Caa2
-- Corporate Family Rating, Upgraded to Caa1 from Caa2
-- Senior Secured Bank Credit Facility, Upgraded B2, LGD2, 28%
from B3, LGD2, 29%
-- Senior Unsecured Bonds, Upgraded to Caa2, LGD5, 82% from
Caa3, LGD5, 84%
-- Outlook, Stable
Local TV's Caa1 corporate family rating incorporates its high
financial leverage (approximately 10.6 times for the trailing
twelve months through March 31, 2010), which poses challenges for
managing a business vulnerable to advertising spending cycles, and
is only partially tempered by the company's strong liquidity
position. Lack of scale also constrains the rating, although the
company benefits from a station portfolio with diverse network
affiliations and leading audience positions. These assets,
combined with Local TV's continued local market focus and good
margins, create the capacity to generate strong unlevered cash
flow. Ratings are also impacted by the fact that the company
notably continues to face fierce competition for advertising
dollars related to ongoing media fragmentation.
The stable outlook reflects expectations that Local TV will
maintain its strong liquidity position, will generate positive
free cash flow, and that leverage will trend toward less than 10
times debt-to-EBITDA on a two year average basis.
The most recent rating action for Local TV occurred on July 29,
2009. At that time Moody's lowered the corporate family rating to
Caa2 from Caa1.
Formed in early 2007 through the acquisition of nine television
stations from the New York Times Company, Local TV Finance, LLC,
owns nine television stations (increasing to 10 with the
acquisition of CW affiliate WGNT from CBS, expected to close in Q3
2010) located in 8 mid-size markets (DMAs 43 to 100) across the
United States. Local TV's parent company is 95% owned by
affiliates of Oak Hill Capital Partners. The company maintains
headquarters in Fort Wright, Kentucky and its revenue for the
trailing twelve months through March 31, 2010, was approximately
$140 million.
M-FOODS HOLDINGS: S&P Affirms Corporate Credit Rating at 'B+'
-------------------------------------------------------------
Standard & Poor's Ratings Services said that it affirmed its 'B+'
corporate credit rating, on Minnetonka, Minn.-based M-Foods
Holdings Inc. and Michael Foods Inc. At the same time, S&P
removed the ratings from CreditWatch with negative implications,
where they were placed on May 24, 2010, following the company's
announcement that its parent, M-Foods Holdings Inc., signed a
definitive agreement to be acquired by GS Capital Partners. The
outlook is negative.
At the same time, S&P assigned its 'BB-' issue rating (one notch
higher than the corporate credit rating) to the company's
proposed senior secured credit facilities, which consist of a new
$75 million revolving credit facility maturing 2015 and a new
$790 million term loan B due 2016. The recovery rating on these
facilities is '2', indicating S&P's expectation for substantial
(70% to 90%) recovery in the event of a payment default. S&P also
assigned a 'B-' issue-level rating (two notches lower than the
corporate credit rating) on the company's proposed $430 million
unsecured debt due 2018. The recovery rating is '6', indicating
S&P's expectation for negligible (0% to 10%) recovery in the event
of a payment default. These ratings are based on preliminary
terms and are subject to review upon receipt of final
documentation. S&P's ratings on the company's existing debt
issues will be withdrawn upon the close of the transaction.
Following the transaction, S&P estimate that the company will have
about $1.26 billion of total consolidated debt outstanding.
"The ratings affirmation reflects S&P's belief that, despite a
meaningful increase in debt levels, operating performance will
remain fairly stable and that the company will apply free cash
flow to debt reduction and strengthen credit protection measures
over the next one to two years," said Standard & Poor's credit
analyst Mark Salierno. The transaction values the company at
about $1.675 billion, of which about $1.26 billion will be
financed with debt. Pro forma for the transaction, S&P estimate
lease-adjusted debt to EBITDA is about 5.8x. Although this
transaction weakens the company's credit profile due to the
additional debt used to fund the transaction, S&P expects the
company to improve leverage closer to the 5x area by the end of
2011. Goldman Sachs Capital Partners is the primary financial
sponsor, and the total equity contribution is $491.5 million.
Under the terms of the proposed sale, Thomas H. Lee Partners (the
prior financial sponsor) will retain a 20% ownership stake in the
business, while management will continue to hold a smaller equity
interest. S&P expects the transaction to close by the end of
June.
The ratings on M-Foods Holdings Inc. reflect the company's high
pro forma debt leverage, commodity exposure, and competition from
a number of larger companies in its operating sectors. The
company benefits from a strong market position in its core egg
products business and a growing value-added product portfolio.
Michael Foods is a specialty egg producer and distributer to the
foodservice, retail, and food ingredients markets. There is
product concentration, as egg products account for more than 70%
of sales. The company also distributes refrigerated grocery
products, with cheese representing most of this segment, and it
also produces refrigerated potato products. Michael Foods
competes with substantially larger competitors including Cargill
Inc. (A/Stable/A-1) and ConAgra Foods Inc. (BBB/Stable/A-2) in the
egg market, Kraft Foods Inc. (BBB/Positive/A-2) in cheese, and
Hormel Foods Corp. (A/Stable/A-1) in refrigerated potato products.
For the complete recovery analysis, see Standard & Poor's recovery
report on M-Foods Holdings, to be published following the release
of this report.
The negative outlook reflects heightened debt levels and weaker
credit protection measures as a result of the largely debt
financed acquisition by GS Capital Partners. By applying cash
flow to debt reduction, S&P estimates that M-Foods can improve
leverage to below 5.5x by the end of 2010 under a scenario in
which sales increase by a low-single-digit rate, even under a
scenario in which EBITDA margins contract up to 100 basis points.
S&P would consider a lower rating if the company experiences
operating difficulties that cause EBITDA to decline 10% or more
and leverage to exceed 6x. Although a higher rating is unlikely
within the next year given the high leverage, S&P would consider
an outlook revision to stable in the event that the company meets
its operating plan and is on target to reduce leverage closer to
5x. At pro forma debt levels, for this to occur, S&P estimates
that EBITDA would have to increase roughly 15% from the trailing
12 months ended April 3, 2010.
MAJESTIC LIQUOR: Court Extends Filing of Schedules Until July 5
---------------------------------------------------------------
The U.S. Bankruptcy Court for the Northern District of Texas
extended, at the behest of Majestic Liquor Stores, Inc., et al.,
the deadline for the filing of schedules of assets and
liabilities, schedules of executory contracts and unexpired leases
and statements of financial affairs until July 5, 2010.
The Debtors said that they need additional time beyond the
previous June 20, 2010 deadline due to the size and complexity of
the Debtors' operations and the volume of material that must be
compiled and reviewed by the Debtors' limited staff. Completing
the schedules will require the collection, review and assembly of
a substantial amount of information relating to a significant
number of transactions and creditors, the Debtors said.
Fort Worth, Texas-based Majestic Liquor Stores, Inc. -- dba Double
T Discount Beer & Wine No. 2, et al. -- was incorporated in 1955.
It operates Texas retail stores for the sale of liquor, beer, wine
and bar supplies. The Company operates 46 retail stores and three
wholesale locations.
Majestic Liquor together with its affiliates filed for Chapter 11
bankruptcy protection on June 6, 2010 (Bankr. N.D. Tex. Case No.
10-43849). J. Robert Forshey, Esq., and Jeff P. Prostok, Esq., at
Forshey & Prostok, LLP, assists the Company in its restructuring
effort. Focus Management Group USA Inc. is the Company's
financial advisor. The Company estimated its assets and debts at
$10,000,001 to $50,000,000.
MAJESTIC LIQUOR: Drops Forshey as Bankr. Counsel, Taps Goodrich
---------------------------------------------------------------
Majestic Liquor Stores, Inc., et al., withdrew their request to
retain and employ Forshey & Prostok, LLP, as bankruptcy counsel,
and instead have asked for authorization from the U.S. Bankruptcy
Court for the Northern District of Texas to employ Goodrich
Postnikoff & Albertson, LLP.
Goodrich Postnikoff will, among other things:
a. advise the Debtors concerning, and assist in the
negotiation and documentation of, agreements, debt
restructurings, and related transactions;
b. review the nature and validity of liens asserted against
the property of the Debtors and advise the Debtors
concerning the enforceability of the liens;
c. prepare applications, motions, pleadings, proposed orders,
notices, schedules and other documents, and review
financial and other reports to be filed in the Debtors'
Chapter 11 cases; and
d. counsel the Debtors in connection with the formulation,
negotiation and promulgation of one or more plans of
reorganization and related documents.
Goodrich Postnikoff and the Debtors didn't disclose how the firm
will be compensated for its services.
To the best of the Debtors' knowledge, Goodrich Postnikoff is a
"disinterested person," as that term is defined in section 101(14)
of the Bankruptcy Code, as modified by section 1107(b) of the
Bankruptcy Code.
Fort Worth, Texas-based Majestic Liquor Stores, Inc. -- dba Double
T Discount Beer & Wine No. 2, et al. -- was incorporated in 1955.
It operates Texas retail stores for the sale of liquor, beer, wine
and bar supplies. The Company operates 46 retail stores and three
wholesale locations.
Majestic Liquor together with its affiliates filed for Chapter 11
bankruptcy protection on June 6, 2010 (Bankr. N.D. Tex. Case No.
10-43849). J. Robert Forshey, Esq., and Jeff P. Prostok, Esq., at
Forshey & Prostok, LLP, assists the Company in its restructuring
effort. Focus Management Group USA Inc. is the Company's
financial advisor. The Company estimated its assets and debts at
$10,000,001 to $50,000,000.
MAJESTIC LIQUOR: Wants to Hire Focus as Financial Advisor
---------------------------------------------------------
Majestic Liquor Stores, Inc., et al., have sought permission from
the U.S. Bankruptcy Court for the Northern District of Texas to
employ Focus Management Group USA, Inc., as financial advisor as
of the Petition Date.
Focus Management will, among other things:
a. assist the Debtors' personnel in the development of
rolling 13 week cash flow budgets and associated cash
management, disbursement, and reporting processes;
b. assist the Debtors in its efforts to obtain debtor-in-
possession financing or cash collateral, and assist the
Debtor in its reporting of performance pursuant to
applicable debtor-in-possession financing, cash
collateral, or other orders entered by the Court;
c. assist the Debtor in its contracts and communications with
its creditors and other parties-at-interest with respect
to the Debtors' financial, operational, and
reorganizational matters; and
d. assist the Debtors in the preparation of its plan of
reorganization, disclosure statement and associated
financial projections.
Focus Management will be paid based on the hourly rates of its
personnel:
Managing Director $375
Senior Consultant $300
J. Tim Pruban, the president of Focus Management, assures the
Court that the firm is a "disinterested person," as that term is
defined in section 101(14) of the Bankruptcy Code, as modified by
section 1107(b) of the Bankruptcy Code.
Fort Worth, Texas-based Majestic Liquor Stores, Inc. -- dba Double
T Discount Beer & Wine No. 2, et al. -- was incorporated in 1955.
It operates Texas retail stores for the sale of liquor, beer, wine
and bar supplies. The Company operates 46 retail stores and three
wholesale locations.
Majestic Liquor together with its affiliates filed for Chapter 11
bankruptcy protection on June 6, 2010 (Bankr. N.D. Tex. Case No.
10-43849). J. Robert Forshey, Esq., and Jeff P. Prostok, Esq., at
Forshey & Prostok, LLP, assists the Company in its restructuring
effort. Focus Management Group USA Inc. is the Company's
financial advisor. The Company estimated its assets and debts at
$10,000,001 to $50,000,000.
MAJESTIC LIQUOR: Section 341(a) Meeting Scheduled for July 16
-------------------------------------------------------------
The U.S. Trustee for Region 6 will convene a meeting of Majestic
Liquor Stores, Inc.'s creditors on July 16, 2010, at 10:00 a.m.
The meeting will be held at Fritz G. Lanham Federal Building, 819
Taylor Street, Room 7A24, Ft. Worth, TX 76102.
This is the first meeting of creditors required under Section
341(a) of the U.S. Bankruptcy Code in all bankruptcy cases.
All creditors are invited, but not required, to attend. This
Meeting of Creditors offers the one opportunity in a bankruptcy
proceeding for creditors to question a responsible office of the
Debtor under oath about the company's financial affairs and
operations that would be of interest to the general body of
creditors.
Fort Worth, Texas-based Majestic Liquor Stores, Inc. -- dba Double
T Discount Beer & Wine No. 2, et al. -- was incorporated in 1955.
It operates Texas retail stores for the sale of liquor, beer, wine
and bar supplies. The Company operates 46 retail stores and three
wholesale locations.
Majestic Liquor together with its affiliates filed for Chapter 11
bankruptcy protection on June 6, 2010 (Bankr. N.D. Tex. Case No.
10-43849). J. Robert Forshey, Esq., and Jeff P. Prostok, Esq., at
Forshey & Prostok, LLP, assists the Company in its restructuring
effort. Focus Management Group USA Inc. is the Company's
financial advisor. The Company estimated its assets and debts at
$10,000,001 to $50,000,000.
MAJESTIC LIQUOR: Wants Margulies as Public Relations Counsel
------------------------------------------------------------
Majestic Liquor Stores, Inc., et al., have sought permission as
U.S. Bankruptcy Court for the Northern District of Texas to employ
The Margulies Communications Group as public relations counsel as
of the Petition Date.
Margulies will:
a. provide strategic public relations counsel;
b. handle media relations, including research and draft of
news releases and other materials; and
c. provide media monitoring and follow-up.
Margulies will be paid based on the hourly rates of its personnel:
David Margulies $400
Account Executive $195
To the best of the Debtor's knowledge, Margulies is a
"disinterested person," as that term is defined in section 101(14)
of the Bankruptcy Code, as modified by section 1107(b) of the
Bankruptcy Code.
Fort Worth, Texas-based Majestic Liquor Stores, Inc. -- dba Double
T Discount Beer & Wine No. 2, et al. -- was incorporated in 1955.
It operates Texas retail stores for the sale of liquor, beer, wine
and bar supplies. The Company operates 46 retail stores and three
wholesale locations.
Majestic Liquor together with its affiliates filed for Chapter 11
bankruptcy protection on June 6, 2010 (Bankr. N.D. Tex. Case No.
10-43849). J. Robert Forshey, Esq., and Jeff P. Prostok, Esq., at
Forshey & Prostok, LLP, assists the Company in its restructuring
effort. Focus Management Group USA Inc. is the Company's
financial advisor. The Company estimated its assets and debts at
$10,000,001 to $50,000,000.
MAJESTIC STAR: Promises to File Plan by August 20
-------------------------------------------------
Majestic Star Casino LLC is asking the Bankruptcy Court to extend
its exclusive period to file a Chapter 11 plan until August 20.
Majestic Star says it was forced to revise the business plan when
quick access by customers from Chicago to the Indiana properties
was cut off because a bridge closed for structural repairs. The
Company is promising to file a reorganization plan before the
extended exclusivity ends. A hearing on the exclusivity motion is
set for June 29. The Company says that the creditors' committee
and secured lenders don't object to longer exclusivity.
About Majestic Star
The Majestic Star Casino, LLC -- aka Majestic Star Casino, aka
Majestic Star -- is based in Las Vegas, Nevada. It is a wholly
owned subsidiary of Majestic Holdco, LLC, which is a wholly owned
subsidiary of Barden Development, Inc. The Company was formed on
December 8, 1993, as an Indiana limited liability company to
provide gaming and related entertainment to the public. The
Company commenced gaming operations in the City of Gary at
Buffington Harbor, located in Lake County, Indiana on June 7,
1996. The Company is a multi-jurisdictional gaming company with
operations in three states -- Indiana, Mississippi and Colorado.
The Company filed for Chapter 11 bankruptcy protection on
November 23, 2009 (Bankr. D. Del. Case No. 09-14136).
The Company's affiliates -- The Majestic Star Casino II, Inc., The
Majestic Star Casino Capital Corp., Majestic Star Casino Capital
Corp. II, Barden Mississippi Gaming, LLC, Barden Colorado Gaming,
LLC, Majestic Holdco, LLC, and Majestic Star Holdco, Inc. -- also
filed separate Chapter 11 petitions.
Kirkland & Ellis LLP is the Debtors' bankruptcy counsel. James E.
O'Neill, Esq., Laura Davis Jones, Esq., and Timothy P. Cairns,
Esq., at Pachulski Stang Ziehl & Jones LLP are the Debtors'
Delaware counsel. Xroads Solutions Group, LLC, is the Debtors'
financial advisor, while EPIQ Bankruptcy Solutions LLC are the
Debtors' claims and notice agent.
The Majestic Star Casino, LLC's balance sheet at June 30, 2009,
showed total assets of $406.42 million and total liabilities of
$749.55 million. When it filed for bankruptcy, the Company listed
up to $500 million in assets and up to $1 billion in debts.
MANIS LUMBER: N.D. Ga. Okays Retroactive Lease Rejection
--------------------------------------------------------
WestLaw reports that a bankruptcy court had equitable discretion
to approve the rejection of debtor's unexpired, nonresidential
real property lease retroactively, in order to minimize the
estate's obligation for rent under 11 U.S.C. Sec. 365(d)(3). A
bankruptcy judge in Georgia also held that the statute made the
estate liable only for a pro rata portion of rent which accrued
prior to the effective date of rejection. The court finally
decided to fix the effective date of rejection retroactively to a
date ten days after the debtor's service of its rejection motion
on the landlord. While the fact that, when debtor gave
unequivocal notice of its intent to reject by serving its
rejection motion, it had already quit the premises, such that
there was nothing to preclude the landlord from reentering, a ten-
day postponement was warranted, both to give the landlord time to
receive the motion and reasonable time to act. The debtor did not
affirmatively communicate to the landlord that it could have
immediate possession. In re Manis Lumber Co., --- B.R. ----, 2009
WL 6497835 (Bankr. N.D. Ga.).
Headquartered in Rome, Georgia, Manis Lumber Co. dba Wheeler's
manufactures and distributes building materials to professional
home builders from about 20 locations in Georgia, Alabama, and
North Carolina. Those building materials include engineered,
framing, and pressure-treated lumber, hardware, roofing, and stair
parts. Manis also makes trusses and wall panels, and sells and
installs door and window assemblies.
The Debtor and its affiliates sought chapter 11 protection (Bankr.
N.D. Ga. Case Nos. 08-40398 through 08-40417) on Feb. 11, 2008.
G. Frank Nason, IV, Esq., at Lamberth Cifelli Stokes Ellis & Nason
P.A. provides the Debtors with legal advice and Carl Marks
Advisory Group LLC serves as the Debtors' financial and management
consultant. Michael H. Traison, Esq., and Donald J. Hutchinson,
Esq., at Miller Canfiels Paddock & Stone PLC in Chicago represents
the Official Committee of Unsecured Creditors. At the time of the
chapter 11 filing, Manis Lumber estimated its assets at less than
$10 million and its debts at more than $10 million.
MEDICAL STAFFING: To Be Sold to Lenders in Chapter 11
-----------------------------------------------------
Medical Staffing Network Holdings Inc. said June 15 that it will
begin a prepackaged Chapter 11 reorganization by June 28 where the
first-lien lenders owed $95.1 million will buy the business in
exchange for debt.
On June 9, 2010, Medical Staffing and all of its wholly owned
subsidiaries, including Medical Staffing Network, Inc. and Medical
Staffing Holdings, LLC, entered into a Restructuring Support
Agreement with General Electric Capital Corporation, as
administrative agent, with all of the first lien lenders under the
Company's Amended and Restated Credit Agreement dated March 12,
2009 and with 95% of the second lien lenders under the Company's
Amended and Restated Second Lien Credit Agreement, dated March 12,
2009. The RSA lays out the broad terms of an agreed-upon
financial restructuring of the Company's debt and equity and sets
forth the agreement of the Company and the Lenders to complete the
restructuring, as more particularly set forth in the RSA.
Under the RSA, and subject to the terms and conditions contained
therein:
* The Company will file a voluntary petition for bankruptcy
protection under Chapter 11 of the United States Bankruptcy
Code, which filing is expected to be made on or before
June 28, 2010;
* An entity to be organized and owned by the First Lien Lenders
will enter into an Asset Purchase Agreement with the Company
to acquire substantially all of the assets and business of the
Company in a sale to take place under Section 363 of the
Bankruptcy Code, with the First Lien Lenders using their first
lien debt as consideration for the purchase, all subject to
bidding procedures and "stalking horse" provisions that will
be subject to approval by the Bankruptcy Court;
* GECC, as agent, and the First Lien Lenders, have agreed to
provide the Company with a $15 million debtor-in-possession
credit facility, which will be used to meet the Company's
working capital requirements and pay the costs associated with
the restructuring;
* The Second Lien Lenders have agreed to consent to the terms of
the sale of the Company's assets and business to the First
Lien Lenders and, subject to the terms and conditions of the
RSA, not to object to such sale transaction.
A copy of the RSA is available for free at:
http://researcharchives.com/t/s?64eb
A copy of the DIP Facility term sheet is available for free at:
http://researcharchives.com/t/s?64ec
About Medical Staffing
Boca Raton, Fla.-based Medical Staffing Network Holdings, Inc.
(OTC QX: MSNW) is one of of the largest diversified healthcare
staffing companies in the United States. The Company provides per
diem nurse staffing services and travel, allied health and vendor
managed services.
The Company's balance sheet as of March 28, 2010, showed
$87.7 million in assets and $140.8 million of debts, for a
stockholders' deficit of $53.1 million.
MEDICAL STAFFING: Prepackaged Plan Would Wipe Out Shareholders
--------------------------------------------------------------
Medical Staffing Network Holdings Inc. said it will commence a
prepackaged Chapter 11 reorganization by June 28 where the first-
lien lenders owed $95.1 million will buy the business in exchange
for debt. The first lien lenders and the second lien lenders have
signed in to the deal.
Medical Staffing said in a regulatory filing that following the
sale of the assets to the first lien lenders, it is "not
anticipated that any value will be available for distribution to
the holders of the Company's common stock." In that regard,
simultaneously with or shortly after the filing of the Chapter 11
petition, the Company intends to seek Bankruptcy Court approval to
file a Form 15 with the Securities and Exchange Commission to
voluntarily deregister its common stock under the Securities
Exchange Act of 1934, as amended. The Company believes that it is
eligible to deregister by filing a Form 15 because it has fewer
than 300 holders of record of its common stock. Further, the
Company intends to delist its common stock from the OTCQX
immediately following the filing of the Form 15.
About Medical Staffing
Boca Raton, Fla.-based Medical Staffing Network Holdings, Inc.
(OTC QX: MSNW) is one of of the largest diversified healthcare
staffing companies in the United States. The Company provides per
diem nurse staffing services and travel, allied health and vendor
managed services.
The Company's balance sheet as of March 28, 2010, showed
$87.7 million in assets and $140.8 million of debts, for a
stockholders' deficit of $53.1 million.
MEDSCI DIAGNOSTICS: Section 341(a) Meeting Scheduled for July 15
----------------------------------------------------------------
The U.S. Trustee for Region 21 will convene a meeting of Medsci
Diagnostics Inc's creditors on July 15, 2010, at 2:00 p.m. The
meeting will be held at Ochoa Building, 500 Tanca Street, First
Floor, San Juan, PR 00901.
This is the first meeting of creditors required under Section
341(a) of the U.S. Bankruptcy Code in all bankruptcy cases.
All creditors are invited, but not required, to attend. This
Meeting of Creditors offers the one opportunity in a bankruptcy
proceeding for creditors to question a responsible office of the
Debtor under oath about the company's financial affairs and
operations that would be of interest to the general body of
creditors.
San Juan, Puerto Rico-based Medsci Diagnostics, Inc, filed for
Chapter 11 bankruptcy protection on June 6, 2010 (Bankr. D.P.R.
Case No. 10-04961). Edgardo Munoz, Esq., at Edgardo Munoz, PSC,
assists the Company in its restructuring effort. The Company
listed $50,000,001 to $100,000,000 in assets and $1,000,001 to
$10,000,000 in liabilities.
MEDSCI DIAGNOSTICS: Taps Edgardo Munoz as Bankruptcy Counsel
------------------------------------------------------------
Medsci Diagnostics Inc sought and obtained authorization from the
Hon. Enrique S. Lamoutte Inclan of the U.S. Bankruptcy Court for
the District of Puerto Rico to employ Edgardo Munoz, PSC, as
bankruptcy counsel.
Edgardo Munoz will, among other things:
a. assist the Debtor with respect to negotiations with
creditors for the purpose of achieving a reorganization or
an orderly liquidation;
b. prepare complaints, answers, orders, reports, memoranda of
law and/or any other legal paper or document required in
the above captioned case;
c. appear before the Court or any other court in which the
Debtor asserts a claim, interest or defense related to
the bankruptcy case;
d. perform other legal services for debtor as may be required
in this proceeding or in connection with the operation of
the Debtor's business including, but not limited to,
notarial services.
Edgardo Munoz will be paid $275 per hour for its services.
Edgardo Munoz, Esq., an attorney at Edgardo Munoz, PSC, assures
the Court that the firm is a "disinterested person," as that term
is defined in section 101(14) of the Bankruptcy Code, as modified
by section 1107(b) of the Bankruptcy Code.
San Juan, Puerto Rico-based Medsci Diagnostics, Inc, filed for
Chapter 11 bankruptcy protection on June 6, 2010 (Bankr. D.P.R.
Case No. 10-04961). The Company listed $50,000,001 to
$100,000,000 in assets and $1,000,001 to $10,000,000 in
liabilities.
MEDSCI DIAGNOSTICS: Wants Rafael Gonzalez Velez as Special Counsel
------------------------------------------------------------------
Medsci Diagnostics, Inc., has asked for authorization from the
U.S. Bankruptcy Court for the District of Puerto Rico to employ
Rafael Gonzalez Velez as special counsel.
The Debtor needs the services of a special counsel to prosecute a
civil action against the State Insurance Fund Corporation.
Mr. Velez will, among other things:
a. represent and advise the Debtor with respect to its
duties, as plaintiff in Adv. Proc. No. 10-00094;
b. prepare complaints, answers, orders, reports, memoranda of
law and/or any other legal paper or document required in
the case;
c. appear before the Court or any other court in which the
Debtor asserts a claim, interest or defense related to its
contract with SIF; and
d. perform other legal services for the Debtor as may be
required in the proceeding or in connection with the
aforesaid litigation including negotiation of settlements
and other activities related to the action(s) versus SIF.
Mr. Velez has received from the Debtor a retainer in the amount of
$5,000. Contingent fees have been agreed upon at these
percentages: 10% of the outstanding and liquidated amount owed by,
and collected from SIF; plus 15% of any other recovery from SIF as
set forth in Adv. Proc. 10-00094.
To the best of the Debtor's knowledge, Mr. Velez is "disinterested
person," as that term is defined in section 101(14) of the
Bankruptcy Code, as modified by section 1107(b) of the Bankruptcy
Code.
San Juan, Puerto Rico-based Medsci Diagnostics, Inc, filed for
Chapter 11 bankruptcy protection on June 6, 2010 (Bankr. D.P.R.
Case No. 10-04961). The Company listed $50,000,001 to
$100,000,000 in assets and $1,000,001 to $10,000,000 in
liabilities.
MOVIE GALLERY: Selling DVDs and Video Games for $8 Million
----------------------------------------------------------
Bill Rochelle at Bloomberg News reports that Movie Gallery Inc.,
which is liquidating its video-rental stores, is selling the
inventory at the distribution center in Nashville, Tennessee, in
two sales totaling over $8 million. VPD IV Inc. is under contract
to buy some 1.2 million Bluray and DVD movies for $5.06 million.
COKeM International Ltd. will take the video games and related
accessories for $3.03 million. In both cases, Movie Gallery will
accept higher offers, although without holding a formal auction.
The hearing for approval of the sales is set for June 24.
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).
MOTELS OF SEYMOUR: Case Summary & 20 Largest Unsecured Creditors
----------------------------------------------------------------
Debtor: Motels of Seymour, LLP
1220 Brookville Way
Indianapolis, IN 46239
Bankruptcy Case No.: 10-08839
Chapter 11 Petition Date: June 11, 2010
Court: United States Bankruptcy Court
Southern District of Indiana (Indianapolis)
Judge: Frank J. Otte
Debtor's Counsel: KC Cohen, Esq.
151 N Delaware St Ste 1104
Indianapolis, IN 46204
Tel: (317) 715-1845
Fax: (317) 916-0406
E-mail: kc@esoft-legal.com
Scheduled Assets: $3,552,073
Scheduled Debts: $5,422,625
A list of the Company's 20 largest unsecured creditors
filed together with the petition is available for free
at http://bankrupt.com/misc/insb10-08839.pdf
The petition was signed by Sanjay Patel, president.
MOVIE GALLERY: Canada Unit Liquidates Merchandise in 181 Stores
---------------------------------------------------------------
Movie Gallery Canada, Inc., has operated 181 stores under the
"Movie Gallery" and "VHQ" banners in all provinces in Canada, with
the exception of Quebec. The Company today announces that it will
be liquidating inventory and other assets at all of its Movie
Gallery and VHQ stores over the next six to eight weeks. All of
its stores are scheduled to close on or before July 31, 2010, with
the exact timing of individual store closures to be determined on
a store-by-store basis.
Due to growing challenges in their markets, and other business
concerns, the Company elected to file a Notice of Intention to
Make a Proposal pursuant to the Bankruptcy and Insolvency Act on
May 7, 2010. Under the NOI, A. Farber & Partners Inc., a member
of Farber Financial Group, was appointed as Trustee in the
Proposal, and has been assisting the Company in this process.
The Company is not bankrupt and intends to file a proposal to its
creditors, including landlords and employees, in the near future.
The Company's share of the net proceeds of the Sale will be used
to fund this proposal to its creditors. In the meantime, the
effect of the NOI and the Order of Ontario Superior Court of
Justice dated June 11, 2010, is to provide an overriding stay of
proceedings affecting all creditors until July 21, 2010, or
thereafter if extended by the Court. The Company continues to
occupy its leased premises, and to employ the majority of its
valued 1,200 employees.
A joint venture group consisting of: Schottenstein Bernstein
Corporation, Tiger Capital Group, and Hudson Capital Partners was
selected by the Company to conduct the liquidation sale of the
Company's assets, comprising inventory and furniture, fixtures and
equipment. This arrangement was approved by the Superior Court of
Justice by Order of the Honourable Mr. Justice Campbell on
June 11, 2010. The sale in 131 of the 181 store locations was
commenced by the Agent on June 12, 2010, pursuant to that Order,
affecting inventory valued at approximately $33,000,000.
On June 11th, the Company received offers from parties to acquire
some of its remaining 50 stores, including inventory and assets
therein. All such offers have been declined, and the Company has
now decided to liquidate all 181 of its Canadian stores through
its agreement with the Agent. The remaining 50 stores are to be
added to the liquidation this week with an additional $15,000,000
of inventory and other assets for sale at significant discounts,
including DVD and Blu Ray movies, video games and store fixtures.
"Consumer response to the initial liquidation sale has been
excellent," said David Peress, President of Hudson Capital
Partners. "Customers are taking advantage of tremendous bargains
on a great selection of movies, videos and games available for
purchase at all Movie Gallery and VHQ stores throughout Canada.
New product is arriving daily from Movie Gallery's Canadian
warehouse. All Company gift cards will continue to be honored
during the Sale."
Management, in concert with its advisors and Farber, intends to
work as expeditiously as possible to maximize the outcome for the
benefit of all stakeholders.
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).
MPF CORP: Disclosure Statement Approved, Plan Confirmed
-------------------------------------------------------
BankruptcyData.com reports that the U.S. Bankruptcy Court approved
MPF Corp.'s Disclosure Statement and concurrently confirmed the
Company's Amended Joint Chapter 11 Plan.
MPF's reorganization plan contemplates the sale of the
assets. According to the disclosure statement, the purchaser will
pay $104 million in cash, assume certain debts and release MPF-01
from its obligation to pay the cure amount under a Cosco contract.
About MPF Corp.
Headquartered in Bermuda, MPF Corp. Ltd. -- http://www.mpf-
corp.com/ -- engages in deep water oil and gas exploration. The
company was established on April 25, 2006. The company and
debtor-affiliate MPF Holding US LLC filed separate petitions for
Chapter 11 relief on Sept. 24, 2008 (Bankr. S.D. Tex. Case Nos.
08-36086 and 08-36084). MPF-01 followed on Sept. 25, 2008.
D. Bobbitt Noel, Jr., Esq. at Vinson & Elkins LLP, represents the
Debtors as counsel. When the Debtors filed for protection from
creditors, they listed assets of $100 million to $500 million, and
the same range of debts.
The Bermuda Proceedings and the Chapter 11 cases in the U.S. run
as parallel proceedings, which is coordinated to effectuate the
Debtors' goal of providing for a restructuring of their businesses
or sale of assets as may be in the best interests of their estates
and creditors.
MTI TECHNOLOGY: Plan Confirmation Hearing Set for August 26
-----------------------------------------------------------
The U.S. Bankruptcy Court for the Central District of California
will consider at a hearing on August 26, 2010 at 10:30 a.m., the
confirmation of the third amended Chapter 11 Plan, proposed by MTI
Technology Corp., and the Official Committee of Unsecured
Creditors. Objections, if any, are due on July 15.
June 17 is fixed as the last day for the Plan Proponents to mail
the Plan materials and ballots. The deadline for returning
completed ballots is on July 15, 2010, at 4:00 p.m., Pacific Time.
As reported in the Troubled Company Reporter on July 17, 2009, the
Plan contemplates the transfer of all assets of the Debtor,
including the prosecution of causes of action, to an MTI
Liquidating Trust, which will liquidate the assets and distribute
the proceeds thereof to holder of allowed claims and allowed
unclassified claims in satisfaction of the Debtor's obligations.
In the event that all allowed claims are paid in full, any
remaining amounts will be turned over by the MTI Liquidating Trust
to a "Pour-over Account", and the Equity Disbursing Agent -- who
will be appointed by the liquidating trustee -- will make
distributions to holders of interests.
Holders of claims in Classes 3 and 4 will be entitled to vote on
the Plan as their interest are impaired. Holders of interests in
Class 5 will be deemed to reject and won't receive ballots from
the Debtors.
On the effective date, the official committee of unsecured
creditors will be disbanded, but members of that committee will
form the MTI Trust Committee.
A full-text copy of the amended Disclosure Statement is available
for free at http://bankrupt.com/misc/MTITEchnology_AmendedDS.pdf
About MTI Technology Corp.
Headquartered in Tustin, California, MTI Technology Corp. --
http://www.mti.com/-- was a global provider of end-to-end
information infastructure for mid to large size companies. At the
time of its bankruptcy filing, the Debtor had three primary groups
of assets, the majority of which have now been sold:
(1) European Subsidiaries - The Debtor owned all of the issued
and outstanding capital stock of each of MTI Technology
GmbH, incorporated in Germany, MTI Technology Limited,
incorporated in Scotland, and MTI France S.A.S.,
incorporated in France.
(2) A U.S.-based service division known as "Collective", which
was acquired by the Debtor approximately 18 months ago.
(3) A separate, U.S.-based sales and service division other
than Collective.
The Company filed for Chapter 11 protection on Oct. 15, 2007
(Bankr. C.D. Calif. Case No. 07-13347). Ivan L. Kallick, Esq., at
Mannatt Phelps & Phil; Christine M. Fitzgerald, Esq., and Eve A.
Marsella, Esq., at Clarkson, Gore & Marsella APLC, represent the
Debtor as counsel. Omni Management Group LLC serves as the
Debtor's claim, noticing and balloting agent. The U.S. Trustee
for Region 16 appointed nine creditors to serve on an Official
Committee of Unsecured Creditors in the Debtor's case. Winthrop
Couchot Professional Corporation represents the Committee as
general insolvency counsel. As of Aug. 21, 2007, the Debtor had
total assets of $19,955,578 and total debts of $33,093,308.
NEXHORIZON COMMS: Case Summary & 20 Largest Unsecured Creditors
---------------------------------------------------------------
Debtor: NexHorizon Communications, Inc.
aka NexHorizon of Colorado, Inc.
aka Y-Tel International, Inc.
aka Y-Tell International Panama, SA
aka Consolidated Picture Corp.
aka Satellite Networks, Inc.
aka NexHorizon Broadband of Southern California, Inc.
(formerly National City Cable, Inc.)
aka International Telekom, LLC
aka Y-Tell International, LLC
aka NexHorizon of Oklahoma, Inc.
9737 Wadsworth Parkway
Westminster, CO 80021
Bankruptcy Case No.: 10-24682
Chapter 11 Petition Date: June 11, 2010
Court: United States Bankruptcy Court
District of Colorado (Denver)
Judge: Elizabeth E. Brown
Debtor's Counsel: James E. Pratt, Esq.
195 Kildare Rd.
Garden City, NY 11530
Tel: (516) 741-2978
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/cob10-24682.pdf
The petition was signed by Calvin D. Smiley, Sr., president and
CEO.
OMAR SPAHI: Has Until June 25 to Propose Chapter 11 Plan
--------------------------------------------------------
The U.S. Bankruptcy Court for the Central District of California
extended until June 25, 2010, Omar Yehia Spahi's exclusive period
to propose a Chapter 11 plan.
Santa Monica, California-based Omar Yehia Spahi filed for Chapter
11 on December 4, 2009 (Bankr. C.D. Calif. Case No. 09-44294).
Michael Jay Berger, Esq., represents the Debtor in its
restructuring effort. The Law Offices of Michael Jay Berger
assist the Debtor in its restructuring effort. In its petition,
the Debtor listed assets and debts both ranging from $10,000,001
to $50,000,000.
OSCIENT PHARMACEUTICALS: Ch. 11 Plan Filing Moved to June 29
------------------------------------------------------------
The Hon. Henry J. Boroff of the U.S. Bankruptcy Court for the
District of Massachusetts extended until June 29, 2010, Oscient
Pharmaceuticals Corporation and Guardian II Acquisition
Corporation's exclusive periods to file and solicit acceptances
for the proposed Chapter 11 Plan.
Based in Waltham, Massachusetts, Oscient Pharmaceuticals
Corporation -- http://www.antararx.com/and
http://www.factive.com/-- and its wholly owned subsidiary,
Guardian II Acquisition Corporation, sell two products, ANTARA
(fenofibrate) capsules, which is a cardiovascular product
indicated for the adjunct treatment of hypercholesterolemia (high
blood cholesterol) and hypertriglyceridemia (high triglycerides)
in combination with diet, and FACTIVE (gemifloxacin mesylate)
tablets, which is a fluoroquinolone antibiotic indicated for the
treatment of acute bacterial exacerbations of chronic bronchitis
and community-acquired pneumonia of mild to moderate severity.
As of December 31, 2008, the Debtors' audited consolidated
financial statements reflected total assets of $174.0 million and
total liabilities of $255.2 million.
Oscient Pharmaceuticals Corporation together with an affiliate
filed for Chapter 11 on July 13, 2009 (Bankr. D. Mass. Case No.
09-16576). Judge Henry J. Boroff presides over the case. Charles
A. Dale III, Esq., at K&L Gates LLP, represents the Debtors. The
Debtors also hired Ropes & Gray LLP as special litigation counsel,
and Broadpoint Capital Inc. as financial advisor.
PEEK'N PEAK RESORT: Financial Woes Prompt Bankruptcy Filing
-----------------------------------------------------------
Dennis Phillips at The Observer reports that Peek'n Peak Resort
sought bankruptcy protection in the U.S. Bankruptcy Court for the
Northern District of Ohio. The Company said it filed for Chapter
11 as its financial situation "does not seem to be improving."
According to The Observer, company owner Paul Kiebler filed
emergency motions allowing him to pay employee wages and benefits
that were accrued before the bankruptcy filing. The resort
employs 315 hourly and salaried employees, and owed them $138,500
for work performed between May 17 and May 26 -- with another pay
period due on June 2.
Mr. Kiebler, the report relates, has until July 9 to complete his
financial filing schedules and statements.
Peek'n Peak Resort -- http://www.pknpk.com/-- operates a
recreational and leisure facility.
POWER DEVELOPMENT: Voluntary Chapter 11 Case Summary
----------------------------------------------------
Debtor: Power Development, LLC
373 Biltmore Avenue
Asheville, NC 28801
Bankruptcy Case No.: 10-10684
Chapter 11 Petition Date: June 11, 2010
Court: United States Bankruptcy Court
Western District of North Carolina (Asheville)
Judge: George R. Hodges
Debtor's Counsel: D. Rodney Kight, Jr., Esq.
Kight Law Office
9 SW Pack Square, Suite 200
Asheville, NC 28801
Tel: (828) 255-9881
Fax: (828) 255-9886
E-mail: info@kightlaw.com
Estimated Assets: $10,000,000 to $50,000,000
Estimated Debts: $10,000,000 to $50,000,000
A list of the largest unsecured creditors filed together with the
petition is available for free at:
http://bankrupt.com/misc/ncwb10-10684.pdf
PPA HOLDINGS: Wells Fargo Wants Case Converted to Chapter 7
-----------------------------------------------------------
Wells Fargo Bank, N.A., secured creditor and party-in-interest,
asks the U.S. Bankruptcy Court for the Central District of
California to convert the Chapter 11 case of PPA Holdings, LLC, et
al., to one under Chapter 7 of the Bankruptcy Code.
Wells Fargo Bank is trustee for the registered holders of Banc of
America Commercial Mortgage Inc., Commercial Mortgage Pass-Through
Certificates, Series 2000-1, and is acting by and through Berkadia
Commercial Mortgage, LLC, as special servicer.
Wells Fargo explains that:
a. during the Bankruptcy Case, the value of the estate's
primary asset (an apartment complex in Mesa, Arizona) has
fallen significantly;
b. as a result of gross mismanagement by the Debtor, the
monthly rental revenues from the property and the occupancy
levels at the property have declined severely, and continue
to decline;
c. the Debtor failed to rectify its mismanagement of the
property, and to retain a third party management company to
manage the property; and
d. there is no reasonably likelihood of a successful
rehabilitation of the Debtor.
About PPA Holdings LLC
Irvine, California-based PPA Holdings LLC and its affiliates
collectively owned and managed 47 multi-family apartment
complexes, consisting of 2,398 individual apartment units, three
office/commercial buildings, and a condominium unit.
The Company and its affiliates filed for Chapter 11 on June 26,
2009 (Bankr. C.D. Calif. Lead Case No. 09-16353). Nanette D.
Sanders, Esq., and Todd C. Ringstad, Esq., at Ringstand & Sanders
LLP, represent the Debtors in their restructuring efforts.
Richard W. Esterkin, Esq., at Morgan Lewis & Bockius LLP,
represents the official committee of unsecured creditors as
counsel. The Debtors listed $10 million to $50 million in assets
and $50 million to $100 million in debts.
PORTFOLIO INVESTMENTS: Sec. 341(a) Meeting Set for June 24
----------------------------------------------------------
The United States Trustee for the Western District of Washington
will convene a meeting of the creditors of Portfolio Investments
LLC and Steven and Marcia Nikolich on June 24, 2010, at 1:30 p.m.
The meeting will be held at Courtroom J, Union Station, 1717
Pacific Avenue, in Tacoma, Washington.
Steven Nikolich is the managing member of Portfolio Investments.
This is the first meeting of creditors required under Section
341(a) of the U.S. Bankruptcy Code in all bankruptcy cases.
All creditors are invited, but not required, to attend. This
Meeting of Creditors offers the one opportunity in a bankruptcy
proceeding for creditors to question a responsible office of the
Debtor under oath about the company's financial affairs and
operations that would be of interest to the general body of
creditors.
Creditors' List
On May 14, 2010, about a week after filing for bankruptcy, each of
Portfolio Investment and the Nikolichs separately filed with the
Court a list of their largest unsecured creditors.
Portfolio Investment listed its top 7 creditors, which include
First Savings Bank Northwest, owed $1,851,858; Katherine
Petrovich, $124,000; and Bank of America, $43,000 under a line of
credit, and $34,190 on credit card debts. It owed under $800 each
to the City Treasurer in Tacoma, Puget Sound Energy and AT&T.
The Nikolichs listed their top 9 creditors, which include First
Savings Bank Northwest, owed $3,266,750; BECU, $249,952; Gloria M.
Riley and Sherril F. Schaaf, c/o Eisenhower & Carlson PLLC,
$202,500; Jack Nikolich, $1250,000; and Bank of America, $38,329
on credit cards. They owed Great West Management Group, Inc.,
$3,189; and under $2,000 to each of Puget Sound Energy, Macy's and
Comcast.
About Portfolio Investments and the Nikolichs
Lake Tapps, Washington-based Portfolio Investments, LLC, own seven
real properties. Portfolio Investments filed for Chapter 11
protection on May 6, 2010 (Bankr. W.D. Wash. Case No. 10-43655).
Its managing member, Steven J. Nikolich and his spouse, Marcia A.
Nikolich, also commenced a personal bankruptcy case (Bankr. W.D.
Wash. Case No. 10-43661).
No administrative consolidation has been requested in the cases.
Notwithstanding, Judge Paul B. Snyder oversees both cases. Susan
Chang, Esq., Monica Chilton, Esq., and Olga Rotstein, Esq., at Tax
Attorneys Inc., in Bellevue, Washington, serve as bankruptcy
counsel to both Debtors. Each of the Debtors' petition indicated
assets and debts are between $100,000,001 and $500,000,000.
PORTFOLIO INVESTMENTS: Files Schedules and Statement
----------------------------------------------------
Portfolio Investments, LLC, on June 10, 2010, filed with the Court
its schedules of assets and liabilities, and statement of
financial affairs, disclosing:
Schedule Assets Debts
-------- ------ -----
A - Real Property $1,485,000
B - Personal Property $0
C - Property Claimed as Exempt -
D - Creditors Holding
Secured Claims $1,900,608
E - Creditors Holding Unsecured
Priority Claims $0
F - Creditors Holding Unsecured
Non-priority Claims $78,886
Portfolio Investments had obtained a June 17 extension of its
deadline to file its schedules and statement, and other required
documents. According to the Debtor's motion, the bankruptcy case
was filed as an emergency case. The Debtor said the extension was
requested because the Debtor has seven real properties with
several mortgages to different creditors, as well as other assets,
debtors and other expenses it must properly identify. The Debtor
also noted that its managing member, Steven Nikolich, is
collecting and cataloguing information for his personal
bankruptcy.
About Portfolio Investments and the Nikolichs
Lake Tapps, Washington-based Portfolio Investments, LLC, own seven
real properties. Portfolio Investments filed for Chapter 11
protection on May 6, 2010 (Bankr. W.D. Wash. Case No. 10-43655).
Its managing member, Steven J. Nikolich and his spouse, Marcia A.
Nikolich, also commenced a personal bankruptcy case (Bankr. W.D.
Wash. Case No. 10-43661).
No administrative consolidation has been requested in the cases.
Notwithstanding, Judge Paul B. Snyder oversees both cases. Susan
Chang, Esq., Monica Chilton, Esq., and Olga Rotstein, Esq., at Tax
Attorneys Inc., in Bellevue, Washington, serve as bankruptcy
counsel to both Debtors.
RATHGIBSON INC: Emerges From Chapter 11 Bankruptcy Protection
-------------------------------------------------------------
According to AMM.com, RathGibson has emerged from bankruptcy with
a new owner, Wayzata Investment Partners LLC.
The Plan included the sale of substantially all of the assets of
RathGibson, Inc., and its domestic affiliates at an auction held
on May 19, 2010. The sale also includes the assumption of certain
liabilities including the payment obligations for known unpaid
pre-bankruptcy filing trade claims.
Bloomberg relates that to buy the business, no one bid against the
$93 million cash offer from a group including some of the existing
secured lenders and holders of 70% of the $209.5 million in 11.25
percent unsecured notes. The sale finances the plan incorporating
a settlement with creditor groups. The original plan was
negotiated with holders of 73% of the senior unsecured notes
before the Chapter 11 filing in July.
About RathGibson Inc.
Headquartered in Lincolnshire, Illinois, RathGibson Inc. --
http://www.RathGibson.com/, http://www.GreenvilleTube.com/
and http://www.ControlLine.com/-- is a worldwide manufacturer of
highly engineered stainless steel, nickel, and titanium tubing for
diverse industries such as chemical, petrochemical, energy --
power generation, energy -- oil and gas, food, beverage,
pharmaceutical, biopharmaceutical, medical, biotechnology, and
general commercial.
Manufacturing locations include: Janesville, Wisconsin, North
Branch, New Jersey, Clarksville, Arkansas (Greenville Tube), and
Marrero, Louisiana (Mid-South Control Line). In addition to the
sales offices in Janesville, North Branch, and Marrero, RathGibson
has also strategically placed sales offices in Houston, Texas,
USA; Shanghai, China; Manama, Bahrain; Melbourne, Australia;
Seoul, Republic of Korea; Mumbai, India; Singapore; Vienna,
Austria; and Buenos Aires, Argentina.
RathGibson, Inc., together with three affiliates, filed for
Chapter 11 on June 13, 2009 (Bankr. D. Del. Case No. 09-12452).
Attorneys at Young, Conaway, Stargatt & Taylor and Willkie Farr &
Gallagher LLP serve as co-counsel. Jefferies & Company Inc. and
Mesirow Financial Consulting LLC have been hired as financial
advisors. Kelley Drye & Warren LLP serves as special corporate
counsel. Garden City Group is claims and notice agent. The
petition says that Rathgibson has assets and debts of $100 million
to $500 million.
Scott Welkis, Esq., Kristopher M. Hansen, Esq., and Jayme T.
Goldstein, Esq., at Stroock & Stroock & Lavan represent Wilmington
Trust FSB, as administrative agent, and an ad hoc committee of
certain holders of Senior Notes. Attorneys at Richards, Layton &
Finger P.A., also represent the ad hoc noteholders committee.
REDWINE RESOURCES: Files Schedules of Assets and Debts
------------------------------------------------------
Redwine Resources, Inc., filed with the Court its schedules of
assets and liabilities and statement of financial affairs,
disclosing:
Schedule Assets Debts
-------- ------ -----
A - Real Property $19,126,000
B - Personal Property $3,071,758
C - Property Claimed as Exempt -
D - Creditors Holding
Secured Claims $43,270,476
E - Creditors Holding Unsecured
Priority Claims $18,515
F - Creditors Holding Unsecured
Non-priority Claims $3,129,694
----------- ------------
$22,197,758 $46,418,686
About Redwine Resources
Based in Dallas, Texas, Redwine Resources, Inc., acquires and
invests in both producing and non-producing leasehold and mineral
interests across the United States, with a primary focus in
Colorado, Indiana, New Mexico, Oklahoma, Texas and Wyoming.
Redwine Resources acquires interests in target areas where the
geology is defined and productive, and in areas established
operators have targeted, or are reasonably anticipated to soon
target for development, based upon known drilling trends. After
acquisition of the interests, the Company participates as working
interest owners in the drilling of wells on its leases or
repackages the leases for sale to operators and investors.
Redwine Resources and its affiliates filed for Chapter 11
protection on June 4, 2010 (Bankr. N.D. Tex. Case No. 10-34041).
Judge Barbara J. Houser presides over the cases. Michael R.
Rochelle, Esq., at Rochelle McCullough LLP, in Dallas, serves as
the Debtors' counsel. The petition listed between $10,000,001 and
$50,000,000 in both assets and debts.
Substantially all of the Debtors' assets are encumbered by a first
priority security interest in favor of Bank of America, N.A., and
Bank of America is significantly undersecured.
REDWINE RESOURCES: Sec. 341(a) Meeting Set for June 30
------------------------------------------------------
The U.S. Trustee for the Northern District of Texas will convene a
meeting of Redwine Resources, Inc.'s creditors on June 30, 2010,
at 9:15 a.m. The meetings will be held at the Office of the U.S.
Trustee, 1100 Commerce St., Room 976, in Dallas.
This is the first meeting of creditors required under Section
341(a) of the U.S. Bankruptcy Code in all bankruptcy cases.
All creditors are invited, but not required, to attend. This
Meeting of Creditors offers the one opportunity in a bankruptcy
proceeding for creditors to question a responsible office of the
Debtor under oath about the company's financial affairs and
operations that would be of interest to the general body of
creditors.
Based in Dallas, Texas, Redwine Resources, Inc., acquires and
invests in both producing and non-producing leasehold and mineral
interests across the United States, with a primary focus in
Colorado, Indiana, New Mexico, Oklahoma, Texas and Wyoming.
Redwine Resources acquires interests in target areas where the
geology is defined and productive, and in areas established
operators have targeted, or are reasonably anticipated to soon
target for development, based upon known drilling trends. After
acquisition of the interests, the Company participates as working
interest owners in the drilling of wells on its leases or
repackages the leases for sale to operators and investors.
Redwine Resources and its affiliates filed for Chapter 11
protection on June 4, 2010 (Bankr. N.D. Tex. Case No. 10-34041).
Judge Barbara J. Houser presides over the cases. Michael R.
Rochelle, Esq., at Rochelle McCullough LLP, in Dallas, serves as
the Debtors' counsel. The petition listed between $10,000,001 and
$50,000,000 in both assets and debts.
REDWINE RESOURCES: Seeks to Hire Rochelle McCullough as Counsel
---------------------------------------------------------------
Redwine Resources Inc. and its debtor-affiliates seek permission
to employ Rochelle McCullough LLP as bankruptcy attorneys to
prosecute their Chapter 11 cases.
From time to time, beginning in 2009, the Firm provided counsel to
the Debtors on matters generally related to reorganization law, as
it periodically renegotiated its financial structure.
Michael R. Rochelle, Esq., a partner at Rochelle McCullough LLP,
attests that his Firm represents no interest adverse the Debtors
or the estates in the matters upon which it may be engaged by the
Debtors, and that the Firm and its attorneys are "disinterested
persons" as that term is used under Sections 101(14), 327 and 328
of the Bankruptcy Code.
RM's hourly billing rates are $195 to $550 for attorneys, and $140
for paralegals. The RM team will be led by Mr. Rochelle. Mr.
Rochelle's hourly rate is $550. The team includes Chris B.
Harper, $500 per hour; Eric M. Van Horn, $220 per hour; and
Kathryn G. Reid, $195 per hour.
Since 2009, the Firm has maintained a $25,000 evergreen retainer
and has regularly drawn against it for services rendered and
expenses incurred on a monthly and sometimes bi-monthly basis, on
which time the retainer was replenished. RM has billed against
these funds during the period a total of $273,162 in fees and
expenses. Prior to the filing of the petitions, it received a
$148,867 retainer to secure its fees and expenses in the Chapter
11 cases. To the extent allowed by the Court, the further payment
of RM's fees will be made from the estate. RM will not draw on
the retainer without prior Court approval.
About Redwine Resources
Based in Dallas, Texas, Redwine Resources, Inc., acquires and
invests in both producing and non-producing leasehold and mineral
interests across the United States, with a primary focus in
Colorado, Indiana, New Mexico, Oklahoma, Texas and Wyoming.
Redwine Resources acquires interests in target areas where the
geology is defined and productive, and in areas established
operators have targeted, or are reasonably anticipated to soon
target for development, based upon known drilling trends. After
acquisition of the interests, the Company participates as working
interest owners in the drilling of wells on its leases or
repackages the leases for sale to operators and investors.
Redwine Resources and its affiliates filed for Chapter 11
protection on June 4, 2010 (Bankr. N.D. Tex. Case No. 10-34041).
Judge Barbara J. Houser presides over the cases. Michael R.
Rochelle, Esq., at Rochelle McCullough LLP, in Dallas, serves as
the Debtors' counsel. The petition listed between $10,000,001 and
$50,000,000 in both assets and debts.
Substantially all of the Debtors' assets are encumbered by a first
priority security interest in favor of Bank of America, N.A., and
Bank of America is significantly undersecured.
REDWINE RESOURCES: Seeks to Use BofA's Cash; Looks to Sell Assets
-----------------------------------------------------------------
Redwine Resources Inc. and its debtor-affiliates request authority
to use cash collateral pursuant to Section 363 of the Bankruptcy
Code and grant Bank of America, N.A., adequate protection pursuant
to Sections 361 and 363 of the Bankruptcy Code. Redwine Resources
proposes to use Cash Collateral, in the amount of $988,644, for
the next 13 weeks under a Cash Collateral Budget.
The Debtors' bankruptcy was prompted by the significant decline in
the price of natural gas, and a slowdown of drilling activity by
various oil companies, which caused substantial decreases in the
Debtors' production-related revenue. Further, the decrease in the
price of natural gas combined with the collapse in the credit
markets, devastated the Debtors' ability to raise capital to
further develop properties. While certain restructuring
initiatives have been successful in reducing costs, according to
the Debtors, "ultimately chapter 11 proceedings are necessary to
address the Debtors' issues through a sale of assets."
The Debtors said they need immediate access to the cash in their
operating accounts, which may constitute the Cash Collateral of
BofA, to pay its employees, maintain services, operate and
preserve their businesses, and meet their administrative
responsibilities in these chapter 11 cases. The Debtors have no
source of unencumbered cash with which to operate their
businesses, and therefore Cash Collateral must be used.
The Debtors are party to a 2005 prepetition credit agreement with
BofA. The current balance of the Pre-Petition Credit Agreement is
$42,304,522, which is secured by first liens on all or
substantially all of the Debtors' assets.
The Debtors said they have discussed the use of Cash Collateral
with BofA, which does not oppose the use of Cash Collateral in
accordance with the Budget, subject to negotiating an agreed
order.
According to the motion, the Debtors and all parties-in-interest
will have 90 days from the Petition Date to challenge the
validity, perfection, or priority of the security interests and
liens of BofA. Failure to timely challenge will, inter alia, deem
BofA's liens on the prepetition collateral as legal, valid,
binding, perfected, not subject to defense, counterclaim, offset
of any kind, subordination and otherwise unavoidable.
About Redwine Resources
Based in Dallas, Texas, Redwine Resources, Inc., acquires and
invests in both producing and non-producing leasehold and mineral
interests across the United States, with a primary focus in
Colorado, Indiana, New Mexico, Oklahoma, Texas and Wyoming.
Redwine Resources acquires interests in target areas where the
geology is defined and productive, and in areas established
operators have targeted, or are reasonably anticipated to soon
target for development, based upon known drilling trends. After
acquisition of the interests, the Company participates as working
interest owners in the drilling of wells on its leases or
repackages the leases for sale to operators and investors.
Redwine Resources and its affiliates filed for Chapter 11
protection on June 4, 2010 (Bankr. N.D. Tex. Case No. 10-34041).
Judge Barbara J. Houser presides over the cases. Michael R.
Rochelle, Esq., at Rochelle McCullough LLP, in Dallas, serves as
the Debtors' counsel. The petition listed between $10,000,001 and
$50,000,000 in both assets and debts.
Substantially all of the Debtors' assets are encumbered by a first
priority security interest in favor of Bank of America, N.A., and
Bank of America is significantly undersecured.
ROBERT MARTINEZ: Case Summary & 20 Largest Unsecured Creditors
--------------------------------------------------------------
Joint Debtors: Robert Charles Martinez
aka Robert C. Martinez
aka Bob Martinez
Vernice Pulido Martinez
aka Vernice Martinez
2010 Trumar Ln.
Gilroy, CA 95020
Bankruptcy Case No.: 10-56106
Chapter 11 Petition Date: June 11, 2010
Court: United States Bankruptcy Court
Northern District of California (San Jose)
Judge: Arthur S. Weissbrodt
Debtor's Counsel: Charles B. Greene, Esq.
Law Offices of Charles B. Greene
84 W Santa Clara St. #770
San Jose, CA 95113
Tel: (408) 279-3518
E-mail: cbgattyecf@aol.com
Scheduled Assets: $2,903,478
Scheduled Debts: $4,763,735
A list of the Company's 20 largest unsecured creditors
filed together with the petition is available for free
at http://bankrupt.com/misc/canb10-56106.pdf
The petition was signed by Robert Charles Martinez and Vernice
Pulido Martinez.
SAINT VINCENTS: Files Schedules of Assets & Debts, Statement
------------------------------------------------------------
A. Real Property
Bishop Sullivan Residence $7,815,325
Buildings - 75 Vanderbilt 3,040,534
Coleman Pavilion 9,808,128
Cronin Building 3,326,757
Immaculata Hall & Annex 10,381,758
Land 8,508,968
Link Pavilion 3,697,689
Materials Handling Center 1,335,899
O'Toole Building 1,556,732
Smith Raskob-Buildings and Improvements 8,544,064
South Wing Annex 8,335,797
Spellman Pavilion 4,642,205
Staff House 1,047,938
Others 3,642,556
B. Personal Property
B.1 Cash on hand 61,383
B.2 Bank Accounts
Bank of America Payroll 1,193,540
TD Bank Chap 11 Divested 2,226,441
TD Bank Other 18,911,862
Others 2,373,088
B.3 Security Deposits 627,243
B.4 Household goods None
B.5 Collectibles Unknown
B.6 Wearing apparel None
B.7 Furs and Jewelry None
B.8 Firearms and other equipment None
B.9 Interests in Insurance Policies None
B.10 Annuities None
B.11 Interests in an education IRA None
B.12 Interests in IRA, ERISA or other Pension Plans None
B.13 Business Interests and stocks
Queensbrook Insurance Limited (QIL) Investment 2,240,000
Queensbrook NY LLC (QNY) Investment 539,868
B.14 Interests in partnerships 539,007
B.15 Government and Corporate Bonds None
B.16 Accounts Receivable
Affiliation Accounts Receivable 948,114
Grants Receivable 6,138,213
Other Accounts Receivable 5,568,454
Patient Accounts Receivable 74,612,247
Rent Receivables 507,494
Accounts Payable Credit Balances 1,268,205
Intercompany Receivable - Holy Family 162,106
Receivable from Affiliate - SV ER PC 946,862
Intercompany Receivable - Bishop 5,816,315
Intercompany Receivable - Holy Family 500,000
Intercompany Receivable - Registry 697,997
B.17 Alimony None
B.18 Other Liquidated Debts None
B.19 Equitable or Future Interests None
B.20 Interests in estate of a debt benefit plan Unknown
B.21 Other Contingent & Unliquidated claims Unknown
B.22 Patents and other intellectual property None
B.23 Licenses, franchises, and other intangibles Unknown
B.24 Customer lists or other compilations None
B.25 Vehicles 284,952
B.26 Boats, motors, and accessories None
B.27 Aircraft and accessories None
B.28 Office equipment, furnishings and supplies 41,148
B.29 Machinery
Capitalized Leases 8,310,257
Fixed Equipment 14,679,162
Leasehold Improvements 2,061,251
Major Movable Equipment 31,904,800
B.30 Inventory
Inventory Cath Lab 1,200,708
Inventory General Store 77,949
Inventory General Store 704,786
Inventory O/P Pharmacy 157,901
Inventory O/R 5,419,445
Inventory Other 455
Inventory Pharmacy 193,133
Inventory Pharmacy 1,710,118
Inventory Radiology 1,232,638
O/R Scan Non S Inventory 182,396
B.31 Animals None
B.32 Crops None
B.33 Farming Equipments and implements None
B.34 Farm supplies, chemicals, and feed None
B.35 Other Personal Property
Construction in Progress 6,301,701
Prepaid Expenses 19,755,317
Receivable from Richmond Medical Center-RUMC 670,459
TOTAL SCHEDULED ASSETS $296,451,365
=======================================================
C. Property Claimed as Exempt
D. Secured Claims
Loans $382,878,380
Settlement 2,865,721
Statutory Lien 5,053,504
Surety Bonds 588,782
E. Unsecured Priority Claims 17,527,982
F. Unsecured Non-priority Claims
Cancelled Checks 1,823,692
Medical Malpractice 113,000,000
Other 27,668,910
PBGC 186,000,000
Received, Not Invoiced 2,164,251
Trade Payable 80,823,198
Voided Checks 246,507
Worker's Comp - Closed 2,455,438
TOTAL SCHEDULED LIABILITIES $823,096,365
=======================================================
Statement of Financial Affairs
Saint Vincents Catholic Medical Centers of New York delivered to
the U.S. Bankruptcy Court for the Southern District of New York
its statement of financial affairs on June 14, 2010.
Steve Korf, chief financial officer, discloses that SVCMC earned
income from operation of business within during two years before
the Petition Date:
Source 2008 2009 2010
------ ---- ---- ----
Affiliation Income $3,621,879 $3,928,252 $804,609
Behavioral Grant Income $14,907,677 $17,058,455 $4,034,786
Behavioral Income Other $8,051,393 $11,437,488 $3,698,693
Capitation Revenue $114,017,145 $109,238,429 $27,480,077
Contributions $2,739,609 $4,945,387 $973,145
Fee Income $1,529,416 $1,475,951 $279,368
Grant Income $14,416,173 $13,340,901 $2,460,580
Net Patient Revenue $581,964,804 $592,585,614 $135,695,871
Other Operating Income $44,849,225 $49,026,461 $10,773,729
Pool Revenue $14,418,482 $15,695,924 $5,545,685
Practice Group Revenue $0 $6,972 $1,560
Rebates & Refunds $3,227,753 $3,631,120 $345,568
Rental Income $8,703,944 $11,251,957 $2,851,768
Tuition Income $229,294 $315,630 $70,110
SVCMC also earned income other than from employment, trade or
operation of business during the two years before the Petition
Date:
Source 2008 2009 2010
------ ---- ---- ----
Non-operating Revenue ($21,919,862) ($4,444,049) $52,883,637
According to Mr. Korf, SVCMC made payments or other transfer to
creditors totaling $119,342,798 within 90 days before the Petition
Date. Among the largest payments are:
Creditor Amount
-------- ----------
1199 Seiu Benefits Fund $2,226,459
Anna Montalvo and Trolman, Glaser & Liehtman, PC 1,500,000
Blue Cross of New York 2,639,897
Department of Defense 1,499,995
GE Healthcare Financial Ser 1,913,261
GE Int & Fees 3,288,847
McKesson Drug Company 2,382,632
Metlife 2,541,247
Premium Assignment Corporation 3,555,423
A list of the 90-Day Payments is available for free at:
http://bankrupt.com/misc/SVCMC_3B.pdf
The Company made payments to creditors who are insiders
aggregating $4,680,656 within one year immediately preceding the
Petition Date. Among the payments are:
Creditor Amount
-------- ------
Alfred E. Smith Memorial Foundation $30,000
Arthur Webb 25,982
Barbara Piascik 8,538
Bernadette Kingham-Bez 14,229
Brian Fitzsimmons 120,609
A list of the Insider Payments is available for free at:
http://bankrupt.com/misc/SVCMC_3C.pdf
SVCMC also disclosed that it was a party to suits and
administrative proceedings within one year before the Petition
Date. A list of those suits and proceedings is available for free
at http://bankrupt.com/misc/SVCMC_4a.pdf
The Company also made payments related to debt counseling or
bankruptcy aggregating $15,864,279, a list of which is available
for free at http://bankrupt.com/misc/SVCMC_Counseling.pdf
The Company also held property for another person aggregating
$321,747,185, a list of which is available for free at:
http://bankrupt.com/misc/SVCMC_PropertyHeld.pdf
About Saint Vincent Catholic Medical Centers
Saint Vincent Catholic Medical Centers -- http://www.svcmc.org/--
is anchored by St. Vincent's Hospital Manhattan, an academic
medical center located in Greenwich Village and the only emergency
room on the Westside of Manhattan from Midtown to Tribeca, St.
Vincent's Westchester, a behavioral health hospital in Westchester
County, and continuing care services that include two skilled
nursing facilities in Brooklyn, another on Staten Island, a
hospice, and a home health agency serving the Metropolitan New
York area. Its behavioral health services also provide supportive
housing programs for people with mental illness throughout the
Metropolitan area. Saint Vincent's is the designated provider for
the New York and New Jersey region of the US Family Health Plan
sponsored by the US Department of Defense. Saint Vincent's serves
as the academic medical center of New York Medical College in New
York City. The healthcare organization is sponsored by the Roman
Catholic Bishop of Brooklyn and the president of the Sisters of
Charity of New York.
Saint Vincent Catholic Medical Centers of New York and six of its
affiliates filed for Chapter 11 protection on July 5, 2005 (Bankr.
S.D.N.Y. Case No. 05-14945 through 05-14951). Gary Ravert, Esq.,
and Stephen B. Selbst, Esq., at McDermott Will & Emery, LLP, filed
the Debtors' Chapter 11 cases. On September 12, 2005, John J.
Rapisardi, Esq., at Weil, Gotshal & Manges LLP took over
representing the Debtors in their restructuring efforts. Martin
G. Bunin, Esq., at Thelen Reid & Priest LLP, represented the
Official Committee of Unsecured Creditors. As of April 30, 2005,
the Debtors listed $972 million in total assets and $1 billion in
total debts. The Court confirmed the Debtors' Chapter 11 plan on
July 27, 2007.
St. Vincent Catholic Medical Centers and its affiliates returned
to the bankruptcy court by filing another Chapter 11 petition on
April 14, 2010 (Bankr. S.D.N.Y. Case No. 10-11963). The new
petition listed assets of $348 million against debt totaling
$1.09 billion. Adam C. Rogoff, Esq., and Kenneth H. Eckstein,
Esq., at Kramer Levin Naftalis & Frankel LLP, assist the Debtors
in their restructuring efforts. The Debtors' special counsel is
Garfunkel Wild, P.C., while their Crisis Management Team is led by
Grant Thornton LLP. The Debtors' Chief Restructuring Officer is
Mark E. Toney.
SAINT VINCENTS: Proposes Transfer Agreements for Studies
--------------------------------------------------------
Saint Vincents Catholic Medical Centers of New York and its debtor
affiliates seek the Court's authority to enter into novation or
transfer agreements relating to clinical studies and programs
formerly operated by them. The Debtors also ask the Court to
approve procedures for the entry of additional novation agreements
or other transfer or termination agreements effectuating the
transfer of the Clinical Studies and Programs.
One of the important healthcare matters commanding the Debtors'
attention is the orderly transition of clinical studies and
outpatient clinic programs to new third party operators, says Adam
Charles Rogoff, Esq., at Kramer Levin Naftalis & Frankel LLP, in
New York.
Prior to the Petition Date, the Debtors and certain of their
physicians entered into contractual relationships with
pharmaceutical companies and certain federal and state agencies to
provide them with designated funding for physicians employed to
conduct clinical studies using patients treated by the Debtors and
to subsidize or reimburse the Debtors for operating certain
outpatient clinical programs or outpatient programs.
Mr. Rogoff notes that as a result of the closure of the Manhattan
Hospital and the likely closure or transfer of numerous of the
Debtors' outpatient clinics and programs, the Debtors are not
eligible to receive Program Funding in the future for these
Clinical Studies and Clinical Programs. However, Mr. Rogoff
maintains, in many instances, absent an agreement by the Debtors
to facilitate the transfer of the Program Funding to a new
healthcare provider, important funding dedicated to on-going
clinical studies or patient care programs could be forfeited.
Mr. Rogoff maintains that while the opportunity for Future Funding
has no value to the Debtors' estates, the loss of the Program
Funding harms the patients participating in Clinical Studies or
receiving treatment at one of the Clinical Programs and the
physicians conducting Clinical Studies and the Substituted
Institutions. In order to protect against the potential harm to
patient care, the Debtors have been asked, and expect to continue
to be asked from time to time, to enter into various agreements to
transfer the rights to receive the Future Funding in the future.
According to the Debtors, the "transfer" can take various forms
like (i) a "novation agreement," which means an agreement to
substitute a new party to an existing contractual agreement and
discharge the substituted party from its contractual obligations;
(ii) an "assignment agreement;" or (iii) an agreement
acknowledging that the Debtors simply terminate their rights to
seek Future Funding.
The Debtors are a party to approximately 120 agreements with
various sponsors that provide Program Funding for various Clinical
Studies supervised by the Principal Investigators and Clinical
Programs. The Clinical Studies are sponsored by private third
parties, like pharmaceutical manufacturers, and the Clinical
Programs are supported by federal and state agencies and other
funding sources.
The Debtors relate that in 2009, they received approximately
$2.8 million from Program Funding Sponsors under the Program
Funding Agreements.
Where feasible, the Debtors contemplate entering into additional
agreements for each remaining Clinical Study or Clinical Program
that has a third-party sponsor.
The Proposed Novation Agreements provide for the Substituted
Institutions to perform all of the Debtors obligations under the
Program Funding Agreements, while simultaneously discharging any
possible claims of the Program Funding Sponsors against the
Debtors.
Pursuant to the Proposed Novation Agreements, the Program Funding
Sponsors will remain obligated to perform under the Program
Funding Agreements and the Substituted Institutions agree to
continue to perform the Debtors' obligations under the Program
Funding Agreements post-Transfer.
In addition, under the Form Novation Agreement, the Debtors
reserve their rights to collect any payment from the Program
Funding Sponsors for pre-Transfer periods under the Program
Funding Agreements.
The Transfer Procedures
In order facilitate the process, the Debtors ask the Court to
approve these Transfer Procedures:
(a) The Debtors are authorized to enter into Proposed Novation
Agreements and Proposed Transfer Agreements that
substantially comply with the form customary for those
transactions.
(b) Upon entry into a Proposed Novation Agreement or Proposed
Transfer Agreement, the Debtors will serve notice of that
Proposed Novation Agreement or Proposed Transfer Agreement by
first-class mail, electronic mail, facsimile, overnight
delivery or hand delivery on these parties: (a) the U.S.
Trustee; (b) counsel for the postpetition DIP lenders; (c)
counsel to the Official Committee of Unsecured Creditors;
(d) counsel to the Consumer Privacy Ombudsman; and (e) counsel
to the Patient Care Ombudsman.
(c) The Proposed Transfer Notice will include these information
with respect to the Proposed Novation Agreement or Proposed
Transfer Agreement:
(i) a description of the Clinical Study or Program being
novated;
(ii) the identity of the Program Funding Sponsor;
(iii) the identity of the Substituted Institution;
(iv) the identity of the Principal Investigator; and
(v) a copy of the Proposed Novation Agreement or Proposed
Transfer Agreement.
(d) The Debtors are authorized to enter into a Research Records
Custody Agreement in connection with a Proposed Novation
Agreement or Proposed Transfer Agreement; provided however,
that the Debtors will attach a copy of each that Research
Records Custody Agreement to the relevant Proposed Transfer
Notice. The Debtors will cooperate with the Consumer Privacy
Ombudsman and Patient Care Ombudsman and provide them with
all information reasonably requested in connection with the
proposed Research Records Custody Agreement.
(e) The Debtors are authorized to enter into an Institutional
Review Board Agreement in connection with a Proposed Novation
Agreement or Proposed Transfer Agreement; provided however,
that the Debtors will attach a copy of each that IRB
Agreement to the relevant Proposed Transfer Notice.
(f) Interested Parties will have seven days from service of the
Proposed Transfer Notice to serve any objections to a
Proposed Novation Agreement or Proposed Transfer Agreement.
Any objection to a Proposed Novation Agreement or Proposed
Transfer Agreement must (i) be in writing, (ii) state with
specificity the grounds for the objection and (iii) be served
upon the counsel to the Debtors and the Interested Parties,
so as to be received no later than 12:00 p.m. on the final
day of the Objection Period.
(g) The relevant Debtor or Debtors may consummate a Proposed
Novation Agreement or Proposed Transfer Agreement prior to
expiration of the applicable Objection Period if the Debtor
or Debtors obtain each Interested Party's written consent to
the Proposed Novation Agreement or Proposed Transfer
Agreement.
(h) If no objection to a Proposed Novation Agreement or Proposed
Transfer Agreement is served, the Debtors are authorized to
consummate that Proposed Novation Agreement or Proposed
Transfer Agreement, with that agreement effective nunc pro
tunc to the date thereof and may take any actions that are
reasonable and necessary to effect that agreement. No
further notice or Court approval to consummate the Proposed
Novation Agreement or Proposed Transfer Agreement will be
required.
(i) If an Interested Party serves an objection to a Proposed
Novation Agreement or Proposed Transfer Agreement, the
Debtors and that objecting party will use good faith efforts
to resolve the objection consensually. If the Debtors and
the objecting party are unable to resolve the objection
consensually, the Debtors may seek relief from the Court to
consummate the proposed transaction upon at least five
business days written notice, subject to the Court's
availability.
About Saint Vincent Catholic Medical Centers
Saint Vincent Catholic Medical Centers -- http://www.svcmc.org/--
is anchored by St. Vincent's Hospital Manhattan, an academic
medical center located in Greenwich Village and the only emergency
room on the Westside of Manhattan from Midtown to Tribeca, St.
Vincent's Westchester, a behavioral health hospital in Westchester
County, and continuing care services that include two skilled
nursing facilities in Brooklyn, another on Staten Island, a
hospice, and a home health agency serving the Metropolitan New
York area. Its behavioral health services also provide supportive
housing programs for people with mental illness throughout the
Metropolitan area. Saint Vincent's is the designated provider for
the New York and New Jersey region of the US Family Health Plan
sponsored by the US Department of Defense. Saint Vincent's serves
as the academic medical center of New York Medical College in New
York City. The healthcare organization is sponsored by the Roman
Catholic Bishop of Brooklyn and the president of the Sisters of
Charity of New York.
Saint Vincent Catholic Medical Centers of New York and six of its
affiliates filed for Chapter 11 protection on July 5, 2005 (Bankr.
S.D.N.Y. Case No. 05-14945 through 05-14951). Gary Ravert, Esq.,
and Stephen B. Selbst, Esq., at McDermott Will & Emery, LLP, filed
the Debtors' Chapter 11 cases. On September 12, 2005, John J.
Rapisardi, Esq., at Weil, Gotshal & Manges LLP took over
representing the Debtors in their restructuring efforts. Martin
G. Bunin, Esq., at Thelen Reid & Priest LLP, represented the
Official Committee of Unsecured Creditors. As of April 30, 2005,
the Debtors listed $972 million in total assets and $1 billion in
total debts. The Court confirmed the Debtors' Chapter 11 plan on
July 27, 2007.
St. Vincent Catholic Medical Centers and its affiliates returned
to the bankruptcy court by filing another Chapter 11 petition on
April 14, 2010 (Bankr. S.D.N.Y. Case No. 10-11963). The new
petition listed assets of $348 million against debt totaling
$1.09 billion. Adam C. Rogoff, Esq., and Kenneth H. Eckstein,
Esq., at Kramer Levin Naftalis & Frankel LLP, assist the Debtors
in their restructuring efforts. The Debtors' special counsel is
Garfunkel Wild, P.C., while their Crisis Management Team is led by
Grant Thornton LLP. The Debtors' Chief Restructuring Officer is
Mark E. Toney.
SAINT VINCENTS: Sale Protocol for Medical Clinics Approved
----------------------------------------------------------
Saint Vincents Catholic Medical Centers of New York and its debtor
affiliates operate 19 affiliated behavioral health and community
clinics, which provide a variety of services, including HIV
treatment, rape crisis counseling and medical care, homeless
services, long-term health care for the elderly, and immigrant
health services. Additionally, the Debtors have affiliations with
numerous physician practice groups for certain sub-specialties,
like cardiology, gynecology, geriatrics, orthopedics, and others.
Although the Debtors have ceased medical services at their
Manhattan Hospital, they are working to transfer their interests
in the Medical Clinics to third parties. In some instances, the
Debtors operate the Medical Clinics directly. In other instances,
the Medical Clinics are operated by a physician practice
associated with the Debtors. In either case, the
Debtors may have certain interests in assets used by a particular
Medical Clinic.
Moreover, physicians of certain of the practice groups have
already entered into arrangements with a new sponsor, and the
sponsor now seeks to facilitate the transfer of the related assets
and medical records in connection with that physician practice
group. The Debtors relate that their determination to transfer
the Medical Clinics efficiently and with minimal interruption will
be in furtherance of their healthcare mission to provide
continuity of high quality care to the communities they serve.
By this motion, the Debtors ask the Court to approve the Sales
conducted through the Sales Procedures pursuant to Section
363(b)(1) of the Bankruptcy Code. The Debtors assert that
obtaining separate Court approval with respect to each Sale would
be administratively burdensome to the Court and costly to the
Debtors' estates.
The Debtors desire is to effectuate the continuity of medical care
for these outpatient facilities while obtaining a fair value for
any assets associated with those Medical Clinics.
Proposed Sale Procedures
The Debtors, accordingly, sought and obtained the Court's
authority to conduct the Sales pursuant to these proposed Sale
Procedures:
(a) The Debtors may sell an asset or enter into an agreement
in connection with a Medical Clinic for an amount that is
less than or equal to $35,000 in total cash consideration
received by the Debtors without further Court approval,
and without providing notice of a Non-Noticed Asset Sale
to any party.
(b) If the Debtors propose to sell an asset or enter into an
agreement in connection with a Medical Clinic for an
amount of consideration that is greater than $35,000 but
less than or equal to $1,000,000, these procedures will be
followed:
(i) The Debtors will serve a notice of that proposed
sale by first-class mail, facsimile, overnight
delivery or hand delivery on these parties: (a) the
U.S. Trustee; (b) counsel for the postpetition
secured lenders; (c) counsel to the Official
Committee of Unsecured Creditors; (d) all known
parties holding or asserting liens, claims,
encumbrances, or interests on any of the assets that
are the subject of the proposed Sale; (e) all
counterparties to any executory contracts or
unexpired leases to be assumed and assigned pursuant
to the Sale; (f) counsel to the Consumer Privacy
Ombudsman; and (g) counsel to the Patient Care
Ombudsman.
(ii) Interested Parties will have seven days from service
of the Asset Sale Notice to file and serve any
objections to a proposed Asset Sale. Any
objection to a proposed Noticed Asset Sale must (i)
be in writing, (ii) state with specificity the
grounds for the objection (iii) be filed with the
Court, and (iv) be served upon the counsel to the
Debtors and the Interested Parties, so as to be
received no later than 4:00 p.m. on the final day of
the Objection Period.
(iii) The Asset Sale Notice will include these information
with respect to the proposed Noticed Asset Sale: (i)
a description of the Clinic Assets or De Minimis
Assets proposed to be sold and their location; (ii)
the identity of the purchaser or other parties to
the Noticed Asset Sale, and whether that purchaser
is an insider of any of the Debtors; (iii) the
identities of any known parties holding liens or
other secured interests in the Clinic Assets or De
Minimis Assets and a statement indicating that all
Liens are capable of monetary satisfaction; (iv) the
material economic terms and conditions of the
Noticed Asset Sale and any agreements to be entered
into regarding the transfer of the Medical Clinic;
(v) whether any executory contracts or unexpired
leases are to be assumed and assigned to the
purchaser; (vi) whether medical records will be
transferred to the purchaser; (viii) the amount of
any fees to be paid to third party sales agents or
brokers for that Noticed Asset Sale; and (ix)
instructions regarding the procedures to assert
an objection to the Noticed Asset Sale.
(iv) Contemporaneous with serving an Asset Sale Notice,
the Debtors agree to provide to provide the
Committee with a description of the marketing
efforts undertaken by the Debtors with respect to
the assets being sold pursuant to each Noticed Asset
Sale and the Debtors' basis for believing that the
consideration for the Noticed Asset Sale is fair
and equitable.
(v) If any material economic terms of a Noticed Asset
Sale are amended after transmittal of the Asset Sale
Notice, but prior to the expiration of the Objection
Period, the Debtors will send a revised Asset Sale
Notice to all Interested Parties describing the
proposed Noticed Asset Sale, as amended. If a
revised Asset Sale Notice is required, the Objection
Period will be extended for an additional seven
days.
(vi) The relevant Debtor or Debtors may consummate a
Noticed Asset Sale prior to expiration of the
applicable Objection Period if the Debtor or Debtors
obtain each Interested Party's written consent.
(vii) If no objection to a Noticed Asset Sale is filed and
served consistent with these procedures, the Debtors
may consummate that Noticed Asset Sale and may take
any actions that are reasonable and necessary to
close the sale and obtain the sale proceeds,
including paying all cure amounts listed in the
Asset Sale Notice. No further notice or Court
approval to consummate the Noticed Asset Sale will
be required.
(viii) If an Interested Party files and serves an objection
to a Noticed Asset Sale by the Objection Deadline,
the Debtors and that objecting party will use good
faith efforts to resolve the objection consensually,
provided, however, that if any material economic
terms of the Noticed Asset Sale were modified to
resolve the Objection, the applicable Debtor or
Debtors would be required to send to all Interested
Parties a revised Asset Sale Notice that describes
the proposed Noticed Asset Sale, as amended.
Interested Parties would then have an additional
five calendar days in which to object to the terms
of the amended Asset Sale Notice by transmitting a
written Objection to the Debtors' counsel pursuant
to the procedures. If the Debtors and the objecting
party are unable to resolve the objection
consensually, the Debtors will not consummate the
proposed transaction without first obtaining Court
approval of that Noticed Asset Sale, upon at least
two days written notice and a hearing to be
scheduled by the Debtors.
(c) The Debtors will file motion with the Court requesting
approval of the sale of any asset with a Sale Price
greater than $1,000,000.
(d) Any valid and enforceable Liens on the property to be sold
will attach to the net proceeds of the proposed Non-
Noticed Asset Sale or Noticed Asset Sale in the same
priority as existed prior to that sale and subject to any
claims and defenses that the Debtors may possess.
(e) The Debtors are authorized to assume any executory
contract or unexpired leases related to the Medical Clinic
and assign that Clinic Agreements to the purchaser under
that Sale.
(g) Every 90 days, beginning 90 days after the entry of an
order granting this motion, the Debtors will file with the
Court a report listing all the Sales conducted during the
prior ninety-day period. The Sale Report will set forth a
description of each Clinic Asset and De Minimis Asset
sold, the name of the purchaser, the amount of any fees
paid to third party sale agents in connection with each
Clinic Sale, and the sale price for each Clinic Asset and
De Minimis Asset.
About Saint Vincent Catholic Medical Centers
Saint Vincent Catholic Medical Centers -- http://www.svcmc.org/--
is anchored by St. Vincent's Hospital Manhattan, an academic
medical center located in Greenwich Village and the only emergency
room on the Westside of Manhattan from Midtown to Tribeca, St.
Vincent's Westchester, a behavioral health hospital in Westchester
County, and continuing care services that include two skilled
nursing facilities in Brooklyn, another on Staten Island, a
hospice, and a home health agency serving the Metropolitan New
York area. Its behavioral health services also provide supportive
housing programs for people with mental illness throughout the
Metropolitan area. Saint Vincent's is the designated provider for
the New York and New Jersey region of the US Family Health Plan
sponsored by the US Department of Defense. Saint Vincent's serves
as the academic medical center of New York Medical College in New
York City. The healthcare organization is sponsored by the Roman
Catholic Bishop of Brooklyn and the president of the Sisters of
Charity of New York.
Saint Vincent Catholic Medical Centers of New York and six of its
affiliates filed for Chapter 11 protection on July 5, 2005 (Bankr.
S.D.N.Y. Case No. 05-14945 through 05-14951). Gary Ravert, Esq.,
and Stephen B. Selbst, Esq., at McDermott Will & Emery, LLP, filed
the Debtors' Chapter 11 cases. On September 12, 2005, John J.
Rapisardi, Esq., at Weil, Gotshal & Manges LLP took over
representing the Debtors in their restructuring efforts. Martin
G. Bunin, Esq., at Thelen Reid & Priest LLP, represented the
Official Committee of Unsecured Creditors. As of April 30, 2005,
the Debtors listed $972 million in total assets and $1 billion in
total debts. The Court confirmed the Debtors' Chapter 11 plan on
July 27, 2007.
St. Vincent Catholic Medical Centers and its affiliates returned
to the bankruptcy court by filing another Chapter 11 petition on
April 14, 2010 (Bankr. S.D.N.Y. Case No. 10-11963). The new
petition listed assets of $348 million against debt totaling
$1.09 billion. Adam C. Rogoff, Esq., and Kenneth H. Eckstein,
Esq., at Kramer Levin Naftalis & Frankel LLP, assist the Debtors
in their restructuring efforts. The Debtors' special counsel is
Garfunkel Wild, P.C., while their Crisis Management Team is led by
Grant Thornton LLP. The Debtors' Chief Restructuring Officer is
Mark E. Toney.
SAINT VINCENTS: Seeks Approval of Modified Incentive Program
------------------------------------------------------------
Saint Vincents Catholic Medical Centers of New York and its debtor
affiliates seek authority from Judge Cecilia Morris of the U.S.
Bankruptcy Court for the Southern District of New York to modify
their Key Employee Incentive Program and approve the program, as
amended.
Modifications to the KEIP include:
(a) the addition of performance incentive bonuses to
approximately 54 non-management, non-insider employees who
work in the Debtors' central business office; and
(b) the inclusion of certain non-insider non-management
employees who report directly to the Key Employees in the
KEIP.
By the Supplement, the Debtors seek authorization to implement the
CBO Incentive Plan as part of the KEIP for the benefit of the CBO
Employees. The Debtors tell the Court that the CBO Employees are
primarily responsible for the collection of the Debtors'
outstanding accounts receivable. The Debtors previously sought
permission to pay approximately $1.5 million for the Key
Employees.
"As with the Key Employees, the CBO Employees will be subject to a
specific set of metrics, which must be achieved in order for them
to earn a performance bonus under the CBO Incentive Plan," says
Adam Charles Rogoff, Esq., at Kramer Levin Naftalis & Frankel LLP,
in New York.
The Debtors propose to increase the amount of the funds available
in the KEIP by $325,000 to be shared pro rata by the eligible CBO
Employees.
The Debtors also seek to allocate up to $150,000 as incentive
performance payments to those Additional Employees whose services
contributed directly to the successful achievement of the
incentive tasks for the Key Employees under the KEIP.
According to Mr. Rogoff, the CBO Incentive Plan motivates the CBO
Employees to maximize value for the Debtors' estates and creditors
by rewarding those personnel for meeting targeted performance
goals.
The Debtors seek authority to pay Key Employees, Additional
Employees, and the CBO Employees, pursuant to the KEIP and the CBO
Incentive Plan in an aggregate of $1.825 million.
The seven tasks articulated in the Original Motion have been
revised pursuant to discussions between the Debtors and the
Committee. A chart showing the revised tasks is available for
free at http://bankrupt.com/misc/Vincents_IncentiveTasks.pdf
Mark E. Toney, national managing principal of the Corporate
Advisory and Restructuring Services practice of Grant Thornton LLP
and chief restructuring officer of the Debtors, filed with the
Court a declaration in support of the Supplemental Motion. He
maintains that the KEIP is expected to incentivize the Key
Employees, the CBO Employees and the Additional Employees to
perform their jobs at a particularly high level during this
critical time. He avers that the enhanced performances will
increase the Debtors' efficiency during the wind down of their
estates for the benefit of all parties-in-interest.
City of New York Objects
The City of New York and its agencies, including the New York City
Water Board and the New York City Department of Finance, maintains
that it is demeaning, if not insulting, to imply that the Key
Employees and Sales Bonus Employees whose skills and knowledge are
needed by the Debtors are not going to perform their jobs and
functions as required unless they receive "incentives" and
"bonuses" or that, absent those payments, they would seek
employment elsewhere. If this represents the Key Employees' and
Sales Bonus Employees "commitment" to "patient safety and ongoing
patient concerns" then maybe the public would be better served if
these highly skilled professionals were not employed in the
healthcare business where human lives are at risk, Michael A.
Cardozo, corporation counsel of the City of New York, avers.
The City complains that the Debtors' request for approval of the
Key Employee Incentive Plan is particularly inappropriate in light
of their prior Chapter 11 filing and the fact that the Debtors are
not only unable to reorganize this time around but concede that
there is good chance of becoming administratively solvent.
Considering the Debtors' own admission that they may become
administratively insolvent, it seems imprudent, if not improper to
keep adding to the level of administrative expenses thus
increasing the risk that even secured creditors, other than the
DIP lenders, may not get paid, Mr. Cardozo asserts.
Moreover, Mr. Cardozo tells the Court that the City is cross-
moving for adequate protection payments pursuant Section 366 of
the Bankruptcy Code in order to continue to provide water and
sewer service at the Debtors' remaining premises, absent which it
may discontinue services.
About Saint Vincent Catholic Medical Centers
Saint Vincent Catholic Medical Centers -- http://www.svcmc.org/--
is anchored by St. Vincent's Hospital Manhattan, an academic
medical center located in Greenwich Village and the only emergency
room on the Westside of Manhattan from Midtown to Tribeca, St.
Vincent's Westchester, a behavioral health hospital in Westchester
County, and continuing care services that include two skilled
nursing facilities in Brooklyn, another on Staten Island, a
hospice, and a home health agency serving the Metropolitan New
York area. Its behavioral health services also provide supportive
housing programs for people with mental illness throughout the
Metropolitan area. Saint Vincent's is the designated provider for
the New York and New Jersey region of the US Family Health Plan
sponsored by the US Department of Defense. Saint Vincent's serves
as the academic medical center of New York Medical College in New
York City. The healthcare organization is sponsored by the Roman
Catholic Bishop of Brooklyn and the president of the Sisters of
Charity of New York.
Saint Vincent Catholic Medical Centers of New York and six of its
affiliates filed for Chapter 11 protection on July 5, 2005 (Bankr.
S.D.N.Y. Case No. 05-14945 through 05-14951). Gary Ravert, Esq.,
and Stephen B. Selbst, Esq., at McDermott Will & Emery, LLP, filed
the Debtors' Chapter 11 cases. On September 12, 2005, John J.
Rapisardi, Esq., at Weil, Gotshal & Manges LLP took over
representing the Debtors in their restructuring efforts. Martin
G. Bunin, Esq., at Thelen Reid & Priest LLP, represented the
Official Committee of Unsecured Creditors. As of April 30, 2005,
the Debtors listed $972 million in total assets and $1 billion in
total debts. The Court confirmed the Debtors' Chapter 11 plan on
July 27, 2007.
St. Vincent Catholic Medical Centers and its affiliates returned
to the bankruptcy court by filing another Chapter 11 petition on
April 14, 2010 (Bankr. S.D.N.Y. Case No. 10-11963). The new
petition listed assets of $348 million against debt totaling
$1.09 billion. Adam C. Rogoff, Esq., and Kenneth H. Eckstein,
Esq., at Kramer Levin Naftalis & Frankel LLP, assist the Debtors
in their restructuring efforts. The Debtors' special counsel is
Garfunkel Wild, P.C., while their Crisis Management Team is led by
Grant Thornton LLP. The Debtors' Chief Restructuring Officer is
Mark E. Toney.
SALPARE BAY: Taps Farleigh Wada as Bankruptcy Counsel
-----------------------------------------------------
Salpare Bay, LLC, has sought permission from the U.S. Bankruptcy
Court for the District of Oregon to employ Farleigh Wada Witt as
bankruptcy counsel.
FWW will, among other things:
a. represent at all court proceedings in the main case and
any adversary proceedings;
b. represent the Debtor in connection with the sale of any
business assets;
c. prepare and confirm plan of reorganization and disclosure
statement; and
d. review and audit of claims, and any other legal services
as may be required.
FWW will be paid based on the hourly rates of its personnel:
Attorneys Hourly Rate
--------- -----------
F. Scott Farleigh $365
Mark R. Wada $360
Peter C. McKittrick $340
David R. Simon $330
Brian R. Witt $325
David R. Ludwig $320
Valerie Athena Tomasi $320
Dean T. Sandow $320
Kathryn P. Salyer $320
Brad C. Stanford $315
Karen E. Saul $305
Laury H. Hennings $305
Harold B. Scoggins, III $300
Paul Migchelbrink $295
Tara J. Schleicher $285
Michelle M. Bertolino $280
Kimberly Hanks McGair $265
Jason M. Ayres $245
Kelly R. Tilden $230
Jeffrey A. Martin $230
Marisol Ricoy McAllister $220
Christopher L. Parnell $205
Trish A. Walsh $175
Eleanor A. DuBay $130
Paralegals Hourly Rate
---------- -----------
Kathleen Biddle $130
Olga Clouser $130
Diane Fallon $130
Deborah Lewis $130
Susan McGonegal $130
Bev Thomas $130
Support Staff $60
Tara J. Schleicher, a shareholder at FWW, assures the Court that
the firm is a "disinterested person," as that term is defined in
section 101(14) of the Bankruptcy Code, as modified by section
1107(b) of the Bankruptcy Code.
Vancouver, Washington-based Salpare Bay, LLC, filed for Chapter 11
bankruptcy protection on June 7, 2010 (Bankr. D. Ore. Case No. 10-
35333). Tara J. Schleicher, Esq., who has an office in Portland,
Oregon, assists the Company in its restructuring effort. The
Company estimated its assets and debts at $10,000,001 to
$50,000,000.
SHERWOOD FARMS: In Discussions on a Chapter 11 Plan
---------------------------------------------------
Sherwood Farms, Inc., said it is still in discussion with
creditors on the viability of a Chapter 11 plan of reorganization.
Sherwood has sought an extension -- until June 17, 2010 -- of its
exclusive period to file a Chapter 11 Plan.
Groveland, Florida-based Sherwood Farms, Inc., is a grower and
wholesaler of orchids. Sherwood said owes $7 million to first and
second-lien lenders. Sherwood said in a filing that cash,
accounts receivable, inventory, and real property are worth
$8 million.
The Company filed for Chapter 11 bankruptcy protection on
January 15, 2010 (Bankr. M.D. Fla. Case No. 10-00578). Mariane L.
Dorris, Esq., at Latham Shuker Eden & Beaudine LLP, assists the
Company in its restructuring effort. The Company listed
$10,000,001 to $50,000,000 in assets and $10,000,001 to
$50,000,000 in liabilities.
The Company's affiliate, Sherwood Investments Overseas Limited
Incorporated, filed a separate Chapter 11 petition.
SISKEY HAULING: Case Summary & 20 Largest Unsecured Creditors
-------------------------------------------------------------
Debtor: Siskey Hauling Company, Inc.
1490 Veterans Memorial Highway
Mableton, GA 30126
Bankruptcy Case No.: 10-77265
Chapter 11 Petition Date: June 11, 2010
Court: United States Bankruptcy Court
Northern District of Georgia (Atlanta)
Debtor's Counsel: C. David Butler, Esq.
Shapiro Fussell
Suite 1200, One Midtown Plaza
1360 Peachtree Street
Atlanta, GA 30309
Tel: (404) 870-2200
Fax: (404) 870-2222
E-mail: dbutler@shapirofussell.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/ganb10-77265.pdf
The petition was signed by Cynthia J. Siskey, company's president.
SMURFIT-STONE: Committee Objects to Moore & Klinger Legal Fees
--------------------------------------------------------------
Counsel for the Official Committee of Unsecured Creditors for
Smurfit-Stone Container Corp., Laura Davis Jones, Esq., at
Pachulski Stang Ziehl & Jones LLP, in Wilmington, Delaware, notes
that the Debtors have agreed to pay the personal legal fees and
expenses of Chief Executive Officer Patrick Moore and Chief
Operating Officer Steve Klinger as part of new proposed employment
agreements.
Ms. Jones says that over the course of the Chapter 11 cases, the
Committee's and the Debtors' counsel have extensively negotiated
management compensation. She points out that during the months
that the Debtors have spent in bankruptcy, Messrs. Moore and
Klinger have been significantly compensated for their services,
each receiving cash and non- cash compensation awards totaling
over $5,600,000 and $2,600,000.
"In addition, Messrs. Moore and Klinger are set to earn several
million dollars under their proposed employment agreements and
various executive incentive plans," Ms. Jones points out.
Messrs. Moore and Klinger's compensation is the product of
lengthy and often tense negotiations between the Debtors and the
Committee, Ms. Jones tells the Court. She says that the
Committee has reached agreements on all elements of their
compensation except one: their demand to be reimbursed for all
personal legal fees and expenses incurred during the case on the
negotiation of their compensation.
Ms. Jones notes that professional fee reimbursement was not a
feature of the prior employment agreements for the Officers.
Based on the high level of compensation already paid to Messrs.
Moore and Klinger, the amount of legal fees already incurred by
the Debtors related to management compensation issues, and the
absence of the payments in their prepetition employment
agreements, the Committee asserts that the payment of Messrs.
Moore and Klinger's personal legal fees and expenses is not
reasonable.
Against this backdrop, the Committee asks the Court to deny
payment of Messrs. Moore's and Klinger's personal legal fees and
expenses.
About Smurfit-Stone
Smurfit-Stone Container Corp. -- http://www.smurfit-stone.com/--
is one of the leading integrated manufacturers of paperboard and
paper-based packaging in North America and one of the world's
largest paper recyclers. The Company operates 162 manufacturing
facilities that are primarily located in the United States and
Canada. The Company also owns roughly one million acres of
timberland in Canada and operates wood harvesting facilities in
Canada and the United States. The Company employs roughly 21,250
employees, 17,400 of which are based in the United States. For
the quarterly period ended September 30, 2008, the Company
reported roughly US$7.450 billion in total assets and
US$5.582 billion in total liabilities on a consolidated basis.
Smurfit-Stone and its U.S. and Canadian subsidiaries filed for
Chapter 11 protection on January 26, 2009 (Bankr. D. Del. Lead
Case No. 09-10235). Certain of the company's affiliates,
including Smurfit-Stone Container Canada Inc., a wholly owned
subsidiary of SSCE, and certain of its affiliates, filed to
reorganize under the Companies' Creditors Arrangement Act in the
Ontario Superior Court of Justice in Canada.
Smurfit-Stone joined pulp- and paper-related bankruptcies as
rising Internet use hurts magazines and newspapers. Corporacion
Durango SAB, Mexico's largest papermaker, sought U.S. bankruptcy
in October. Quebecor World Inc., a magazine printer and Pope &
Talbot Inc., a pulp-mill operator, also sought cross-border
bankruptcies for their operations in the U.S. and Canada.
James F. Conlan, Esq., Matthew A. Clemente, Esq., Dennis M.
Twomey, Esq., and Bojan Guzina, Esq., at Sidley Austin LLP, in
Chicago, Illinois; and Robert S. Brady, Esq., and Edmon L. Morton,
Esq., at Young Conaway Stargatt & Taylor in Wilmington, Delaware,
serve as the Debtors' bankruptcy counsel. PricewaterhouseCoopers
LLC, serves as the Debtors' financial and investment consultants.
Lazard Freres & Co. LLC acts as the Debtors' investment bankers.
Epiq Bankruptcy Solutions LLC acts as the Debtors' notice and
claims agent.
Bankruptcy Creditors' Service, Inc., publishes Smurfit-Stone
Bankruptcy News. The newsletter tracks the Chapter 11 proceeding
and ancillary foreign proceedings undertaken by Smurfit-Stone
Container Corp. and its various affiliates.
(http://bankrupt.com/newsstand/or 215/945-7000)
SMURFIT-STONE: Continues to Market Two Closed Mills
---------------------------------------------------
Smurfit-Stone Container Corporation and its debtor-affiliates
submitted a status report pursuant to the U.S. Bankruptcy Court
for the District of Delaware's letter to Michigan Governor
Jennifer M. Granholm dated May 7, 2010.
According to James F. Conlan, Esq., at Sidley Austin LLP, in
Wilmington, Delaware, the status report is submitted in advance
of a conference before the Court, currently scheduled for
June 22, 2010, regarding the status of the Debtors'
communications with parties pursuing redevelopment efforts
related to the Debtors' Ontonagon, Michigan mill and Missoula,
Montana mill.
The status conference, however, is subject to rescheduling
pursuant to agreement of the parties, Mr. Conlan notes.
The Debtors closed the Mills in late 2009, and have participated
in at least three separate status conferences regarding the
Mills. Mr. Conlan says that each status conference resulted in
the Court's apparent satisfaction with the Debtors' progress to
date on transitioning the Mills.
Mr. Conlan says that the Debtors' personnel and advisors have
devoted the overwhelming majority of their time since the Mill
closures to engaging in the requisite activities associated with
managing the day-to-day affairs of their Chapter 11 cases.
The activities include, but are not limited to, filing and
updating their Chapter 11 Plan of Reorganization, Disclosure
Statement and projections, continuing the claims and contract
resolution process, engaging in extensive litigation at various
stages of the Chapter 11 cases, including a resource and time-
intensive nine-day confirmation hearing, and running parallel
cross-border restructuring proceedings for 11 of the Debtors in
Canada.
Mr. Conlan notes that the Court recognized that the sale of the
Mills is not critical to the confirmation of the Plan or the
Debtors' ongoing operations.
"Nevertheless, the Debtors have taken seriously the Court's
request to engage in a dialogue with interested parties regarding
the Mills," Mr. Conlan points out.
Since the closing of the Mills, the Debtors have worked
harmoniously with state and local authorities to ensure the safe,
orderly and environmentally secure shutdown of manufacturing
operations at the Mills, Mr. Conlan reveals. He adds that he
believes officials of both states would confirm that the Debtors
have complied with all applicable laws and regulations in
connection with the shutdown.
As the confirmation process winds down, the Debtors have begun to
devote significant resources to the sale process relating to the
Mills, Mr. Conlan further says. Specifically, he points out that
the Debtors have engaged the services of a consultant with
expertise in the alternative energy field, McKinsey & Company, to
assist them in designing and implementing a comprehensive
marketing program to sell the Mills through a more competitive
process.
Mr. Conlan discloses that the Debtors have assembled information
regarding the Mills and provided that information to a number of
prospective purchasers who have entered into confidentiality
agreements. He notes that the Debtors have entered into 15
confidentiality agreements with parties expressing an interest in
a transaction involving one or both Mills.
The Debtors identified companies in the biomass power generation,
biofuels manufacturing and wood pellet manufacturing businesses
as additional potential buyers, and the Debtors have sent
information letters to 56 companies in those fields who have been
screened as potentially interested parties.
Mr. Conlan says that the Debtors have already provided on-site
tours to three prospective buyers and have been asked to provide
more detailed information by each. He adds that the Debtors and
McKinsey are researching potential state or local financial
incentives which may be available to prospective purchasers and
have also had discussions with AlixPartners, financial advisor to
the Missoula Area Economic Development Council.
The Debtors have shared their progress with local representatives
in both communities. According to Mr. Conlan, the parties have
indicated satisfaction with the process sufficient for them to
consent to adjourn to June 22, 2010 the status conference which
was previously scheduled for May 10, 2010.
"In summary, the Debtors have significant resources, both
internal and external, devoted to the sale process, and are
optimistic that transactions embodying suitable alternative uses
for the Mills can be concluded in the near future," Mr. Conlan
relates.
About Smurfit-Stone
Smurfit-Stone Container Corp. -- http://www.smurfit-stone.com/--
is one of the leading integrated manufacturers of paperboard and
paper-based packaging in North America and one of the world's
largest paper recyclers. The Company operates 162 manufacturing
facilities that are primarily located in the United States and
Canada. The Company also owns roughly one million acres of
timberland in Canada and operates wood harvesting facilities in
Canada and the United States. The Company employs roughly 21,250
employees, 17,400 of which are based in the United States. For
the quarterly period ended September 30, 2008, the Company
reported roughly US$7.450 billion in total assets and
US$5.582 billion in total liabilities on a consolidated basis.
Smurfit-Stone and its U.S. and Canadian subsidiaries filed for
Chapter 11 protection on January 26, 2009 (Bankr. D. Del. Lead
Case No. 09-10235). Certain of the company's affiliates,
including Smurfit-Stone Container Canada Inc., a wholly owned
subsidiary of SSCE, and certain of its affiliates, filed to
reorganize under the Companies' Creditors Arrangement Act in the
Ontario Superior Court of Justice in Canada.
Smurfit-Stone joined pulp- and paper-related bankruptcies as
rising Internet use hurts magazines and newspapers. Corporacion
Durango SAB, Mexico's largest papermaker, sought U.S. bankruptcy
in October. Quebecor World Inc., a magazine printer and Pope &
Talbot Inc., a pulp-mill operator, also sought cross-border
bankruptcies for their operations in the U.S. and Canada.
James F. Conlan, Esq., Matthew A. Clemente, Esq., Dennis M.
Twomey, Esq., and Bojan Guzina, Esq., at Sidley Austin LLP, in
Chicago, Illinois; and Robert S. Brady, Esq., and Edmon L. Morton,
Esq., at Young Conaway Stargatt & Taylor in Wilmington, Delaware,
serve as the Debtors' bankruptcy counsel. PricewaterhouseCoopers
LLC, serves as the Debtors' financial and investment consultants.
Lazard Freres & Co. LLC acts as the Debtors' investment bankers.
Epiq Bankruptcy Solutions LLC acts as the Debtors' notice and
claims agent.
Bankruptcy Creditors' Service, Inc., publishes Smurfit-Stone
Bankruptcy News. The newsletter tracks the Chapter 11 proceeding
and ancillary foreign proceedings undertaken by Smurfit-Stone
Container Corp. and its various affiliates.
(http://bankrupt.com/newsstand/or 215/945-7000)
SMURFIT-STONE: Court Issues Memo Overruling Plan Objections
-----------------------------------------------------------
The U.S. Bankruptcy Court for the District of Delaware overruled
the objections filed by Aurelius Capital Management, L.P.,
Columbus Hill Capital Management L.P., and Manufacturers and
Traders Trust Company with respect to Smurfit-Stone Container's
Joint Plan of Reorganization.
"The Objector's objections to confirmation of the Debtors' Plan
are each OVERRULED, with the exception of the objection relating
to whether a reserve must be established on account of the
Intercompany Claim," ruled Judge Brendan Linehan Shannon.
The Court said it will conduct a further status conference on
that issue in open Court on June 22, 2010, at 2:00 p.m.
The Intercompany Claim is held by Stone FinCo II against Debtor
Smurfit-Stone Container Canada, Inc.
Court Addresses Objections
To recall, the Objectors argued that confirmation of the Plan
should be denied on at least four separate grounds:
(1) the Plan improperly classifies, and treats, the
Intercompany Claim separately from the claims of other
general unsecured creditors.
(2) there is no reserve established to provide for a
distribution on account of the Intercompany Claim in the
event it is ultimately allowed.
(3) the Canadian Asset Sale is an improper transfer for the
benefit of insiders at the expense of creditors.
(4) the Plan has not been proposed in good faith.
In a 17-page memorandum opinion, Judge Shannon held that the Plan
treats the Intercompany Claim in a manner that is consistent with
applicable provisions of the Loan Agreement and the parties'
rights under the Agreement. The treatment of the Intercompany
Claim is also consistent with the Canadian Bankruptcy Court's
findings with respect to the Loan Agreement, he said. The Plan
provides that Finance II will receive only what it is entitled to
pursuant to the Loan Agreement, which is no distribution on
account of the Intercompany Claim. The treatment of the
Intercompany Claim, thus, complies with the applicable provisions
of the Bankruptcy Code, and the objection on grounds of
classification and treatment of the Intercompany Claim is
overruled, said the judge.
With regards the Canadian Asset Sale, Judge Shannon said the
record reflects, and the Court finds and concludes that the Sale
does not violate the absolute priority rule embodied in Section
1129(b)(1) of the Bankruptcy Code. Canadian Newco is a newly
formed, wholly owned subsidiary of Reorganized SSCE, and will
purchase the Canadian Assets for fair consideration, he pointed
out. SSCE is not retaining its equity interests in the Canadian
Debtors, nor is it receiving the Canadian Assets on account of
its equity interests, he added.
"Canadian Newco is not receiving nor retaining any property under
the Plan 'on account of' its equity interest, as it never held
any equity interest in the Canadian Debtors, or 'on account of'
SSCE's equity interests," Judge Shannon said. "Canadian Newco is
receiving the Canadian Assets on account of the $600 million in
consideration provided by Canadian Newco."
For this reasons, the objections to confirmation predicated upon
the terms of the Canadian Asset Sale are overruled, said the
Court.
Moreover, the Court found that the Debtors have proposed the Plan
in good faith and not by any means forbidden by law. Consistent
with the overriding purpose of Chapter 11 of the Bankruptcy Code,
the Plan is designed to allow each of the Debtors to reorganize
on a going concern basis while maximizing recoveries to their
creditors and providing the Reorganized Debtors with a capital
structure that will allow the Reorganized Debtors to satisfy
their obligations with sufficient liquidity and capital reserves
and to fund necessary capital expenditures and otherwise conduct
their business in the ordinary course, said Judge Shannon.
Accordingly, the Plan satisfies the "good faith" requirement of
Section 1129(a)(3) of the Bankruptcy Code.
The Court refrained from ruling on the issues relating to whether
a reserve is required on account of the Intercompany Claim and
directed parties to appear at the June 22 status conference to
discuss the matter.
Copies of the Court's Memo and Order are available for free at:
http://bankrupt.com/misc/SmrftPropConfObjOrd.pdf
http://bankrupt.com/misc/SmrftPropPlnMem.pdf
About Smurfit-Stone
Smurfit-Stone Container Corp. -- http://www.smurfit-stone.com/--
is one of the leading integrated manufacturers of paperboard and
paper-based packaging in North America and one of the world's
largest paper recyclers. The Company operates 162 manufacturing
facilities that are primarily located in the United States and
Canada. The Company also owns roughly one million acres of
timberland in Canada and operates wood harvesting facilities in
Canada and the United States. The Company employs roughly 21,250
employees, 17,400 of which are based in the United States. For
the quarterly period ended September 30, 2008, the Company
reported roughly US$7.450 billion in total assets and
US$5.582 billion in total liabilities on a consolidated basis.
Smurfit-Stone and its U.S. and Canadian subsidiaries filed for
Chapter 11 protection on January 26, 2009 (Bankr. D. Del. Lead
Case No. 09-10235). Certain of the company's affiliates,
including Smurfit-Stone Container Canada Inc., a wholly owned
subsidiary of SSCE, and certain of its affiliates, filed to
reorganize under the Companies' Creditors Arrangement Act in the
Ontario Superior Court of Justice in Canada.
Smurfit-Stone joined pulp- and paper-related bankruptcies as
rising Internet use hurts magazines and newspapers. Corporacion
Durango SAB, Mexico's largest papermaker, sought U.S. bankruptcy
in October. Quebecor World Inc., a magazine printer and Pope &
Talbot Inc., a pulp-mill operator, also sought cross-border
bankruptcies for their operations in the U.S. and Canada.
James F. Conlan, Esq., Matthew A. Clemente, Esq., Dennis M.
Twomey, Esq., and Bojan Guzina, Esq., at Sidley Austin LLP, in
Chicago, Illinois; and Robert S. Brady, Esq., and Edmon L. Morton,
Esq., at Young Conaway Stargatt & Taylor in Wilmington, Delaware,
serve as the Debtors' bankruptcy counsel. PricewaterhouseCoopers
LLC, serves as the Debtors' financial and investment consultants.
Lazard Freres & Co. LLC acts as the Debtors' investment bankers.
Epiq Bankruptcy Solutions LLC acts as the Debtors' notice and
claims agent.
Bankruptcy Creditors' Service, Inc., publishes Smurfit-Stone
Bankruptcy News. The newsletter tracks the Chapter 11 proceeding
and ancillary foreign proceedings undertaken by Smurfit-Stone
Container Corp. and its various affiliates.
(http://bankrupt.com/newsstand/or 215/945-7000)
SPHERIS INC: Files Plan; Recovery Not Yet Specified
---------------------------------------------------
Bill Rochelle at Bloomberg News reports that Spheris Inc. filed a
liquidating Chapter 11 plan that proposes to pay creditors in the
priorities outlined in bankruptcy law. The disclosure statement
currently has blanks where unsecured creditors and holders of
subordinated notes eventually will be told the percentage recovery
to expect.
About Spheris Inc.
Headquartered in Franklin, Tennessee, Spheris Inc. --
http://www.spheris.com/-- is a global provider of clinical
documentation technology and services.
Spheris Inc., along with five affiliates, filed for Chapter 11 on
Feb. 3, 2010 (Bankr. D. Del. Case No. 10-10352). Attorneys at
Young Conaway Stargatt & Taylor, LLP, and Willkie Farr & Gallagher
LLP represent the Debtors in their Chapter 11 effort. Jefferies &
Company serve as financial advisors to the Debtors. Attorneys at
Schulte Roth & Zabel LLP and Landis Rath & Cobb LLP serve as
counsel to the prepetition and DIP lenders. Garden City Group
Inc. is claims and notice agent. The petition says that assets
range from $50,000,001 to $100,000,000 while debts range from
$100,000,001 to $500,000,000.
The estate of Spheris Inc. is now formally named SP Wind Down Inc.
after it sold the business in April. CBay Inc.'s MedQuist Inc.
purchased the domestic business of Spheris for $98.8 million.
SPHERIS INC: Has Exclusive Plan Rights Until September 1
--------------------------------------------------------
Bill Rochelle at Bloomberg News reports that Spheris Inc. received
an extension of the exclusive right to propose a reorganization
plan until Sept. 1. The hearing for approval of the disclosure
statement explaining the liquidating Chapter 11 plan is set for
July 13.
About Spheris Inc.
Headquartered in Franklin, Tennessee, Spheris Inc. --
http://www.spheris.com/-- is a global provider of clinical
documentation technology and services.
Spheris Inc., along with five affiliates, filed for Chapter 11 on
Feb. 3, 2010 (Bankr. D. Del. Case No. 10-10352). Attorneys at
Young Conaway Stargatt & Taylor, LLP, and Willkie Farr & Gallagher
LLP represent the Debtors in their Chapter 11 effort. Jefferies &
Company serve as financial advisors to the Debtors. Attorneys at
Schulte Roth & Zabel LLP and Landis Rath & Cobb LLP serve as
counsel to the prepetition and DIP lenders. Garden City Group
Inc. is claims and notice agent. The petition says that assets
range from $50,000,001 to $100,000,000 while debts range from
$100,000,001 to $500,000,000.
The estate of Spheris Inc. is now formally named SP Wind Down Inc.
after it sold the business in April. CBay Inc.'s MedQuist Inc.
purchased the domestic business of Spheris for $98.8 million.
SPIRIT AIRLINES: Has Pact with ALPA; Resumes Flight on Friday
-------------------------------------------------------------
Spirit Airlines Inc. and its pilots, represented by the Airline
Pilots Association, International, said Wednesday they have
reached a tentative agreement on a new contract. The contract,
which was unanimously recommended by the union's leadership, is
subject to ratification by the pilot membership which is planned
for July.
Pending ratification, Spirit's pilots are returning to work, and
the airline will resume operations on Friday, June 18.
In a statement, Spirit thanked the National Mediation Board, its
pilots, employees and ALPA "for their dedication throughout this
process which has allowed the Company to reach a fair and
equitable agreement that will ensure the long-term stability of
the company, and allow Spirit to continue offering its customers
ultra low fares."
Captain Sean Creed, head of the Spirit unit of ALPA, said, "I am
pleased that we were able to fashion a constructive solution to
our differences that will allow us to resume serving our
customers."
"We are excited to be back flying with low fares for our
customers," said Ben Baldanza, President and CEO of Spirit. "Our
pilots worked hard to get a mutually favorable deal that allows
the Company to grow while improving their wages and benefits. We
apologize to those of our customers whose travel was disrupted as
a result of the strike and look forward to earning back their
trust with ultra-low fares, great service, and the best pilots in
the sky."
As reported by the Troubled Company Reporter on June 14, 2010, the
pilot union declared a strike as of June 12 after failing to reach
an agreement with management on pay and benefits after three years
of negotiations. Spirit cancelled flights through June 17, 2010.
The Wall Street Journal's Susan Carey reported that the union's
negotiating group had 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 reported 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 also reported 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.
About ALPA
Founded in 1931, ALPA -- http://www.alpa.org/-- is the world's
largest pilot union and represents 53,000 pilots at 38 airlines in
the United States and Canada, including more than 440 pilots at
Spirit Airlines.
About Spirit Airlines
Spirit Airlines, Inc. -- http://www.spiritair.com/-- is the
largest Ultra Low Cost Carrier in the United States, Latin America
and the Caribbean. Its all-Airbus fleet, the youngest in the
U.S., flies more than 150 daily flights to 40 destinations. The
company is based in South Florida.
According to The Wall Street Journal, Spirit is the largest
carrier at Fort Lauderdale/Hollywood International Airport,
measured by passengers, with nearly a 20% market share. It also
has a significant presence in Atlantic City, N.J., Detroit and
Myrtle Beach, S.C.
STEVEN NIKOLICH: Files Schedules and Statement
----------------------------------------------
Steven and Marcia Nikolich filed with the Court their schedules of
assets and liabilities, and statement of financial affairs,
disclosing:
Schedule Assets Debts
-------- ------ -----
A - Real Property $2,335,000
B - Personal Property $0
C - Property Claimed as Exempt -
D - Creditors Holding
Secured Claims $3,969,250
E - Creditors Holding Unsecured
Priority Claims $330
F - Creditors Holding Unsecured
Non-priority Claims $72,265
The Nikolichs had obtained a June 17 extension of their deadline
to file schedules and statement, and other required documents.
According to the Debtors' motion, the bankruptcy case was filed as
an emergency case. The Debtors said the extension was requested
because the Debtors have seven real properties with several
mortgages to different creditors, as well as other assets, debtors
and other expenses in their personal financial affairs which they
must property identify.
About Portfolio Investments and the Nikolichs
Lake Tapps, Washington-based Portfolio Investments, LLC, own seven
real properties. Portfolio Investments filed for Chapter 11
protection on May 6, 2010 (Bankr. W.D. Wash. Case No. 10-43655).
Its managing member, Steven J. Nikolich and his spouse, Marcia A.
Nikolich, also commenced a personal bankruptcy case (Bankr. W.D.
Wash. Case No. 10-43661).
No administrative consolidation has been requested in the cases.
Notwithstanding, Judge Paul B. Snyder oversees both cases. Susan
Chang, Esq., Monica Chilton, Esq., and Olga Rotstein, Esq., at Tax
Attorneys Inc., in Bellevue, Washington, serve as bankruptcy
counsel to both Debtors.
STEVEN NIKOLICH: Sec. 341(a) Meeting Set for June 24
----------------------------------------------------
The United States Trustee for the Western District of Washington
will convene separate meetings of the creditors of Portfolio
Investments LLC and Steven and Marcia Nikolich on June 24, 2010,
at 1:30 p.m. The meetings will be held at Courtroom J, Union
Station, 1717 Pacific Avenue, in Tacoma, Washington.
Steven Nikolich is the managing member of Portfolio Investments.
This is the first meeting of creditors required under Section
341(a) of the U.S. Bankruptcy Code in all bankruptcy cases.
All creditors are invited, but not required, to attend. This
Meeting of Creditors offers the one opportunity in a bankruptcy
proceeding for creditors to question a responsible office of the
Debtor under oath about the company's financial affairs and
operations that would be of interest to the general body of
creditors.
Creditors' List
On May 14, 2010, about a week after filing for bankruptcy, each of
Portfolio Investment and the Nikolichs separately filed with the
Court a list of their largest unsecured creditors.
Portfolio Investment listed its top 7 creditors, which include
First Savings Bank Northwest, owed $1,851,858; Katherine
Petrovich, $124,000; and Bank of America, $43,000 under a line of
credit, and $34,190 on credit card debts. It owed under $800 each
to the City Treasurer in Tacoma, Puget Sound Energy and AT&T.
The Nikolichs listed their top 9 creditors, which include First
Savings Bank Northwest, owed $3,266,750; BECU, $249,952; Gloria M.
Riley and Sherril F. Schaaf, c/o Eisenhower & Carlson PLLC,
$202,500; Jack Nikolich, $1250,000; and Bank of America, $38,329
on credit cards. They owed Great West Management Group, Inc.,
$3,189; and under $2,000 to each of Puget Sound Energy, Macy's and
Comcast.
About Portfolio Investments and the Nikolichs
Lake Tapps, Washington-based Portfolio Investments, LLC, own seven
real properties. Portfolio Investments filed for Chapter 11
protection on May 6, 2010 (Bankr. W.D. Wash. Case No. 10-43655).
Its managing member, Steven J. Nikolich and his spouse, Marcia A.
Nikolich, also commenced a personal bankruptcy case (Bankr. W.D.
Wash. Case No. 10-43661).
No administrative consolidation has been requested in the cases.
Notwithstanding, Judge Paul B. Snyder oversees both cases. Susan
Chang, Esq., Monica Chilton, Esq., and Olga Rotstein, Esq., at Tax
Attorneys Inc., in Bellevue, Washington, serve as bankruptcy
counsel to both Debtors. Each of the Debtors' petition indicated
assets and debts are between $100,000,001 and $500,000,000.
SW BOSTON: Sec. 341(a) Meeting in Arlington Case on July 7
----------------------------------------------------------
The U.S. Trustee for the District of Massachusetts will convene a
meeting of 131 Arlington Street Trust's creditors on July 7, 2010,
at 12:30 p.m. The meeting will be held at Suite 1055, U.S.
Trustee's Office, John W. McCormack Federal Building, 5 Post
Office Square, 10th Floor, in Boston, Massachusetts.
This is the first meeting of creditors required under Section
341(a) of the U.S. Bankruptcy Code in all bankruptcy cases.
All creditors are invited, but not required, to attend. This
Meeting of Creditors offers the one opportunity in a bankruptcy
proceeding for creditors to question a responsible office of the
Debtor under oath about the company's financial affairs and
operations that would be of interest to the general body of
creditors.
131 Arlington's case has been consolidated for procedural purposes
with those of SW Boston Hotel Venture LLC (Case No. 10-14535) as
the lead case.
On June 10, 131 Arlington obtained interim authority to use cash
collateral and grant replacement liens. 131 Arlington will go
back to the Court on June 29, 2010, at 1:30 p.m. for another
hearing on the Cash Collateral Motion.
Boston, Massachusetts-based SW Boston Hotel Venture LLC is the
developer of the W Hotel. SW Boston Hotel and four other
affiliates filed for Chapter 11 bankruptcy protection on April 28,
2010 (Bankr. D. Mass. Lead Case No. 10-14535). Harold B. Murphy,
Esq., and Natalie B. Sawyer, Esq., at Hanify & King, P.C., assist
the Debtors in their restructuring effort as bankruptcy counsel.
Edwards Angell Palmer & Dodge LLP is the Debtors' special counsel.
SW Boston estimated its assets and debts at $100,000,001 to
$500,000,000.
131 Arlington Street Trust filed for Chapter 11 on June 4, 2010
(Case No. 10-16177). 131 Arlington listed $1,000,001 to
$10,000,000 in estimated assets and $100,000,001 to $500,000,000
in estimated debts. 30-32 Oliver Street Corporate and General
Land Corporation also filed for bankruptcy on June 4, 2010.
TAYLOR BEAN: Has $5 Million in D&O Insurance Coverage
-----------------------------------------------------
Bill Rochelle at Bloomberg News reports that Taylor Bean &
Whitaker Mortgage Corp. lodged claims against the insurance
company that provided $5 million in directors' and officers'
liability coverage. The insurer, National Union Fire Insurance
Co. of Pittsburgh, Pa., is asking the bankruptcy judge to modify
the automatic stay so it can pay defense costs. National Union, a
subsidiary of American International Group Inc., says it hasn't
yet decided whether to cover all claims. The U.S. Department of
Housing and Urban Development brought departmental proceedings
against former officers to bar them from contracting with the
federal government.
Dow Jones Daily Bankruptcy Review reports that a grand jury has
indicted Ex-Taylor Bean Chief Lee Farkas on 16 counts of bank,
securities and wire fraud.
About Taylor Bean
Taylor, Bean & Whitaker Mortgage Corp. is a 27-year-old company
that grew from a small Ocala-based mortgage broker to become one
of the largest mortgage bankers in the United States. In 2009,
Taylor Bean was the country's third largest direct-endorsement
lender of FHA-insured loans of the largest wholesale mortgage
lenders and issuer of mortgage backed securities. It also managed
a combined mortgage servicing portfolio of approximately
$80 billion. The company employed more that 2,000 people in
offices located throughout the United States.
Taylor Bean filed for Chapter 11 on August 24 (Bankr. M.D. Fla.
Case No. 09-07047). Taylor Bean filed under Chapter 11 three weeks
after federal investigators searched its offices. The day
following the search, the Federal Housing Administration, Ginnie
Mae and Freddie Mac prohibited the company from issuing new
mortgages and terminated servicing rights.
Taylor Bean has more than $1 billion of both assets and
liabilities, and between 1,000 and 5,000 creditors, according to
the bankruptcy petition.
TAYLOR-WHARTON: Emerges From Chapter 11
---------------------------------------
Taylor-Wharton International LLC has emerged from Chapter 11
restructuring and implemented its court-authorized Plan of
Reorganization.
"Taylor-Wharton has emerged from Chapter 11 as a stronger company
with the financial flexibility, commitment and expertise to
deliver industry leading excellence and products to our
customers," said Bill Corbin, chairman and chief executive officer
of TWI. "When Taylor-Wharton filed for Chapter 11 protection
eight months ago, it was vital that the Company re-align its
capital structure with current business operations, increase its
financial flexibility, and continue to honor commitments to its
customers and suppliers. I am pleased to report the Company
successfully achieved all of those goals."
While the Company's operations were largely unaffected by the
restructuring, TWI managed to streamline certain of its functions,
reduce overhead and operating expenses and realign its operations
around its three business lines. As announced on June 9, 2010,
TWI completed the sale of its Huntsville Cylinder operation and
certain of its Harrisburg, PA assets to Norris Cylinder Corp.
allowing the Company to focus on its American Welding and Tank,
Sherwood Valve and Taylor Wharton Cryogenics businesses.
Taylor-Wharton consummated the restructuring of its domestic
operations through a pre-arranged Plan of Reorganization. The
Plan reduced the Company's debt obligations by more than 50% and
provided for the investment of new equity capital by the mezzanine
holders and the Company's financial sponsors. Additionally,
Taylor-Wharton's lenders agreed to provide the Company with
improved terms and access to a $25 million credit facility.
"By having an agreement in place with key financial stakeholders
early in the process, we were able to accomplish the restructuring
quickly and efficiently, with little to no disruption to our
customers or to our supply chain," Mr. Corbin said.
The U.S. Bankruptcy Court for the District of Delaware confirmed
the Plan on May 26, 2010. More than 92% of the creditors who cast
ballots voted in favor of confirmation. Trade creditors were
compensated on normal terms throughout the restructuring. Copies
of the Plan and related Disclosure Statement materials can be
found at http://www.twreorg.com/
"All of Taylor-Wharton's employees deserve a lot of credit for
making this restructuring a success," Mr. Corbin said. "Their
hard work and commitment was invaluable to the process."
About Taylor-Wharton
Taylor-Wharton International, LLC, is the world's leading
technology, service and manufacturing network for gas applications
involving pressure vessels and precision valves. Taylor-Wharton
International operates three complementary businesses from 16
manufacturing, sales, warehouse and service facilities in six
countries on four continents, and markets its products in over 80
countries worldwide.
The Company filed for Chapter 11 bankruptcy protection on
November 18, 2009 (Bankr. D. Del. Case No. 09-14089). The Company
listed $10,000,001 to $50,000,000 in assets and $100,000,001 to
$500,000,000 in liabilities.
These affiliates of the Company also filed separate Chapter 11
petitions: Alpha One, Inc.; American Welding & Tank, LLC; Beta
Two, Inc.; Delta Four, Inc.; Epsilon Five, Inc.; Gamma Three,
Inc.; Sherwood Valve, LLC; Taylor-Wharton Intermediate Holdings
LLC; Taylor-Wharton International LLC; TW Cryogenics LLC; TW
Cylinders LLC; TW Express LLC; and TWI-Holding LLC.
TC GLOBAL: Andy Wynne Resigns as Exec. Vice President & CFO
-----------------------------------------------------------
TC Global Inc., dba Tully's Coffee, reported that Andy Wynne has
resigned from his position as Executive Vice President and Chief
Financial Officer to pursue another career opportunity. Mr. Wynne
originally joined Tully's in 2005 as Controller and was promoted
to EVP and CFO in January 2008.
Mr. Wynne will step down effective July 2, 2010, and will continue
to be actively engaged in his role during the transition as
Tully's seeks his replacement.
"[Mr. Wynne] has been a valuable member of the management team the
last five years and I will personally miss him and the outstanding
job he has done for Tully's," said Carl Pennington, President and
Chief Executive Officer. "The combination of Andy's personality,
tremendous business savvy, tireless work ethic and passionate
dedication made him a great fit for Tully's, key qualities we will
seek from whomever we bring in to replace him. While we're sad to
see him leave, we want to wish him and his family all the best in
this new chapter of their life."
"On behalf of the board of directors and the entire Tully's
family, I would like to personally thank Andy for everything he
has done for our company," said Tom T. O'Keefe, Chairman of the
Board. "[Mr. Wynne] was a tremendous example of a hard working
and dedicated team member. We all wish him and his family the
best of luck and good fortune as they embark on a new life
adventure in California."
About Tully's Coffee
Headquartered in Seattle, Washington, TC Global, Inc., dba Tully's
Coffee -- http://www.tullyscoffeeshops.com/-- is a specialty
coffee retailer and wholesaler. Through company owned, licensed
and franchised specialty retail stores in Washington, Oregon,
California, Arizona, Idaho, Montana, Colorado, Wyoming and Utah,
throughout Asia with Tully's Coffee International, and with its
global alliance partner Tully's Coffee Japan, Tully's premium
coffees are available at 545 branded retail locations globally.
TC Global also has the rights to distribute Tully's coffee through
all wholesale channels internationally, outside of North America,
the Caribbean and Japan.
TC Global Inc. dba Tully's Coffee reported $15.65 million in total
assets, $16.48 million in total liabilities and $1.64 million in
noncontrolling interest in joint venture, resulting to a
$2.47 million stockholders' deficit as of Dec. 27, 2009.
TENET HEALTHCARE: Raises Outlook for 2010 Adjusted EBITDA by $50MM
------------------------------------------------------------------
Tenet Healthcare Corporation raised its Outlook for 2010 Adjusted
EBITDA by $50 million to a new range of $1.035 billion to
$1.100 billion. The Company's prior Outlook range was
$985 million to $1.050 billion. The corresponding revised Outlook
range for net income attributable to Tenet shareholders is
$135 million to $204 million and the revised Outlook range for
diluted earnings per share is $0.27 to $0.40 per share.
"Continuing improvements in cost efficiencies are driving an
improving earnings picture," said Trevor Fetter, president and
chief executive officer. "While volumes remain soft, the trends
are showing improvement. Should we experience a resumption of
volume growth, we would expect even stronger financial results."
The Outlook for 2010 controllable operating expense was lowered
by $50 million reflecting the effect of enhanced labor cost
management, reduced clinical information technology expense,
and improving malpractice expense. The impact on 2010 Outlook
Adjusted EBITDA from incremental healthcare information technology
expense is now assumed to be $25 million, down from $40 million in
the prior Outlook.
Through June 9, 2010, the trend for total admissions improved by
80 basis points, to a decline of 1.2 percent as compared to the
first quarter 2010 decline of 2.0 percent. Paying admissions and
commercial managed care admissions trends also strengthened in
this time period showing improvements of 80 and 120 basis points,
respectively. These improvements are relative to the respective
declines of 2.2 percent and 7.2 percent recorded in the first
quarter of 2010. Paying admissions and commercial managed care
admissions declined by 1.4 percent and 6.0 percent in the first 70
days of the second quarter. For conservatism, the middle of our
revised Outlook range assumes the recent trend in commercial
admissions continues for the balance of the year.
About Tenet Healthcare
Dallas, Texas-based Tenet Healthcare Corporation (NYSE: THC) --
http://www.tenethealth.com/-- is a health care services company
whose subsidiaries and affiliates own and operate acute care
hospitals, ambulatory surgery centers and diagnostic imaging
centers.
The Company's balance sheet for March 31, 2010, showed
$7.8 billion in total assets and $7.0 billion in total
liabilities, for a $791.0 million total stockholder's equity.
* * *
Troubled Company Reporter said on March 17, 2010, Fitch Ratings
has affirmed Tenet Healthcare Corp.'s ratings: Issuer Default
Rating at 'B-'; Secured bank facility at 'BB-/RR1'; Senior secured
notes at 'BB-/RR1'.
Fitch has also upgraded Tenet's senior unsecured notes to 'B/RR3'
from 'B-/RR4'. The upgrade is due to improved recovery prospects
for note holders on the basis of a stronger post-restructuring
EBITDA estimate.
As reported by the Troubled Company Reporter on October 1, 2009,
Standard & Poor's Ratings Services assigned its 'CCC' issue-level
rating to hospital operator Tenet Healthcare's $345 million
mandatory convertible preferreds. Net proceeds were used to
repurchase $300 million worth of outstanding 9.25% senior notes
due 2015. The mandatory convertible preferred stock will
automatically convert to Tenet common stock on Oct. 1 2012.
Standard & Poor's views the mandatory convertible preferred
issuance as 100% debt for ratings purposes.
S&P's corporate credit rating on Tenet is 'B', reflecting the
company's struggles over the past several years with weak
operating performance and operating cash outflow and highly
leveraged financial position. Despite the successes to date of a
multiyear turnaround effort, these factors remain key elements of
the company's highly-leveraged financial risk profile and
vulnerable business risk profile. Tenet's extensive efforts to
effectuate a turnaround over several years has included large-
scale management and governance changes, cost control initiatives,
revamped physician recruitment and relationship strategies, and
managed care contract renegotiations to improve pricing. Tenet's
improving financial results and better patient admissions over the
past two years indicate some measure of success of its efforts.
Still, a consistent track record of positive free cash flow
generation is not likely in the near term.
The TCR said September 29, 2009, that Moody's Investors Service
changed the rating outlook of Tenet Healthcare to positive from
stable. Concurrently, Moody's affirmed Tenet's B3 Corporate
Family and Probability of Default ratings.
TERREL REID: Has Access to Bank of America's Cash Collateral
------------------------------------------------------------
The Hon. Jim D. Pappas of the U.S. Bankruptcy Court for the
District of Idaho approved the second stipulation authorizing
Terrel R. Reid and Sharon M. Davies' access to the cash
collateral.
The Court also ordered that the Debtors will pay to Bank of
America the sum of $587,407, consisting of:
i) $550,000 in principal;
ii) $18,653 in accrued interest at the contract rate;
iii) $15,125 in accrued interest at the default rate; and
iv) $3,628 as attorney fees attributable to the DRI guaranteed
debt.
Ketchum, Idaho-based Terrel Reid and Sharon Davies filed for
Chapter 11 bankruptcy protection on January 15, 2010 (Bankr. D.
Idaho Case No. 10-40057). Matthew Todd Christensen, Esq., at
Angstman, Johnson & Associates, PLLC, assists the Company in its
restructuring effort. The Company listed $10,000,001 to
$50,000,000 in assets and $10,000,001 to $50,000,000 in
liabilities.
TEXAS RANGERS: Unsecured Creditors Want Interest on Claims
----------------------------------------------------------
Bill Rochelle at Bloomberg News reports that the official
committee of unsecured creditors for Texas Rangers Baseball
Partners said in a June 11 court filing that the proposed Chapter
11 plan must be amended to give unsecured creditors interest on
their claims plus the right to sue in any court if they are
shortchanged. Without the changes, the Committee says that
unsecured creditors are impaired and entitled to vote on the Plan.
The Bloomberg report adds that the lenders and the Major League
Baseball are in disagreement. Since the loan was in default for a
year before bankruptcy, the lenders believe they assumed the
powers of the team's limited and general partners and have the
right to approve or block the plan. The league answers by
pointing to provisions in the loan documents where the lenders
agreed that there could be no change in control of the club absent
permission from the league after a vote of every team.
Bloomberg continues that the lenders also disagree with the notion
that the Nolan Ryan group is making the best offer. They contend
a Houston businessman named Jim Crane had a higher bid until the
league took over the sale process and compelled a sale to the Ryan
group.
The Bankruptcy Court was scheduled to convene a hearing on the
issues on June 15.
Sale & Restructuring Plan
Texas Rangers filed for Chapter 11 to implement a planned sale of
substantially all of its assets to Rangers Baseball Express LLC,
whose principals include the current President of the Texas
Rangers, Nolan Ryan, and Chuck Greenberg, a sports lawyer and
minor league club owner. The sale will include the Texas Rangers
franchise and substantially all contractual rights related the
operation of the Texas Rangers. The aggregate consideration paid
and obligations assumed by the Purchaser at the Closing will equal
more than $500 million.
The sale is expected to close mid-summer. The deal is subject to
approval of the Office of the Commissioner of Baseball and 75% of
the Major League Baseball clubs.
The Debtor also has filed a prepackaged plan, which sets forth the
distribution that each class of the Debtor's creditors and equity
holders is to receive on the Effective Date under the Prepackaged
Plan. All TRBP's creditors will be paid in full under the
Prepackaged Plan or have their claims assumed by the Purchaser
under the Asset Purchase Agreement. Specifically, each holder of
an (i) Allowed Priority Non-Tax Claim, (ii) Allowed First Lien
Holder Claim, (iii) Allowed Second Lien Holder Claim, (iv) Allowed
MLB Prepetition Claim, (v) Allowed Secured Tax Claim, (vi) Allowed
Other Secured Claim, (vii) Allowed Assumed General Unsecured
Claim, (viii) Allowed Non-Assumed General Unsecured Claim, (ix)
Allowed Emerald Diamond Claim, (x) Allowed Overdraft Protection
Agreement Claim, (xi) Allowed Intercompany Claim, and (xii)
Allowed TRBP Equity Interest is unimpaired and will be paid in
full.
TRBP believes that because the Prepackaged Plan satisfies in full
all claims against TRBP, is supported by TRBP's equity holders,
and will lead to the least disruption to the Texas Rangers'
business of playing baseball, the Prepackaged Plan is in the best
interests of the Texas Rangers franchise and all parties in
interest.
A full-text copy of the Texas Ranger's Plan is available at no
charge at http://bankrupt.com/misc/TEXASRANGERS_ds.pdf
A full-text copy of the disclosure statement is available at no
charge at http://bankrupt.com/misc/TEXASRANGERS_plan.pdf
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.
TEXAS RANGERS: HSG Lenders Want Trustee to Replace Tom Hicks
------------------------------------------------------------
Dow Jones Daily Bankruptcy Review reports that lenders to Hicks
Sports Group, the ultimate owner of the Texas Rangers, said
company founder and Chief Executive Tom Hicks is too conflicted to
serve as the decision maker for equity holders in the baseball
team's Chapter 11 case. According to Dow Jones, the HSG lenders
seek to replace Mr. Hicks with a trustee.
Sale & Restructuring Plan
Texas Rangers filed for Chapter 11 to implement a planned sale of
substantially all of its assets to Rangers Baseball Express LLC,
whose principals include the current President of the Texas
Rangers, Nolan Ryan, and Chuck Greenberg, a sports lawyer and
minor league club owner. The sale will include the Texas Rangers
franchise and substantially all contractual rights related the
operation of the Texas Rangers. The aggregate consideration paid
and obligations assumed by the Purchaser at the Closing will equal
more than $500 million.
The sale is expected to close mid-summer. The deal is subject to
approval of the Office of the Commissioner of Baseball and 75% of
the Major League Baseball clubs.
The Debtor also has filed a prepackaged plan, which sets forth the
distribution that each class of the Debtor's creditors and equity
holders is to receive on the Effective Date under the Prepackaged
Plan. All TRBP's creditors will be paid in full under the
Prepackaged Plan or have their claims assumed by the Purchaser
under the Asset Purchase Agreement. Specifically, each holder of
an (i) Allowed Priority Non-Tax Claim, (ii) Allowed First Lien
Holder Claim, (iii) Allowed Second Lien Holder Claim, (iv) Allowed
MLB Prepetition Claim, (v) Allowed Secured Tax Claim, (vi) Allowed
Other Secured Claim, (vii) Allowed Assumed General Unsecured
Claim, (viii) Allowed Non-Assumed General Unsecured Claim, (ix)
Allowed Emerald Diamond Claim, (x) Allowed Overdraft Protection
Agreement Claim, (xi) Allowed Intercompany Claim, and (xii)
Allowed TRBP Equity Interest is unimpaired and will be paid in
full.
TRBP believes that because the Prepackaged Plan satisfies in full
all claims against TRBP, is supported by TRBP's equity holders,
and will lead to the least disruption to the Texas Rangers'
business of playing baseball, the Prepackaged Plan is in the best
interests of the Texas Rangers franchise and all parties in
interest.
A full-text copy of the Texas Ranger's Plan is available at no
charge at http://bankrupt.com/misc/TEXASRANGERS_ds.pdf
A full-text copy of the disclosure statement is available at no
charge at http://bankrupt.com/misc/TEXASRANGERS_plan.pdf
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.
TEXAS RANGERS: Court to Rule Next Week on Plan Voting
-----------------------------------------------------
The Associated Press reports that U.S. Bankruptcy Judge D. Michael
Lynn is expected to rule next week on whether creditors, owners or
both will be able to vote on Texas Rangers' bankruptcy plan.
Texas Rangers proposes to pay creditors $75 million and sell the
club to a group led by Hall of Fame pitcher and team president
Nolan Ryan and Pittsburgh attorney Chuck Greenberg. Creditors
have said they will vote no, so the plan will be killed unless
owners are allowed to vote. If that happens, Judge Lynn will
review certain bankruptcy codes and make a ruling July 9,
according to the AP.
The creditors want to restart the bidding process. Andrew
LeBlanc, Esq., a partner at Milbank, Tweed, Hadley & McCloy LLP,
on behalf of the top lenders, disputed the Rangers' claim that it
owes just $75 million, saying it is obligated to pay more than
$525 million in loans that team owner Tom Hicks' ownership group
defaulted on, the AP relates. Mr. LeBlanc, according to the AP,
also said the bidding process should reopen because the Greenberg-
Ryan bid was not the highest, showing Mr. Hicks' "insurmountable"
conflict of interest. The AP reports Mr. LeBlanc said the
bankruptcy filing took away creditors' rights in the original loan
agreement, which stipulated that lenders had to approve the team's
sale.
According to the AP, Rangers attorney Martin Sosland, Esq., at
Weil, Gotshal & Manges, said $75 million was the debt lenders
agreed to, and he disputed some creditors' claims the team did not
accept the highest bid to maximize its assets.
According to the AP, Judge Lynn said he tended to agree with the
Rangers' argument that the Greenberg-Ryan bid was the best, saying
there were "beyond value that will play a role" in the sale. But
Judge Lynn told creditors that their argument may apply to Mr.
Hicks' other companies.
The AP notes that Judge Lynn has not yet ruled on a creditors'
motion to force two of the club's equity holding firms, both under
Hicks Sports Group, into the bankruptcy case.
Sale & Restructuring Plan
Texas Rangers filed for Chapter 11 to implement a planned sale of
substantially all of its assets to Rangers Baseball Express LLC,
whose principals include the current President of the Texas
Rangers, Nolan Ryan, and Chuck Greenberg, a sports lawyer and
minor league club owner. The sale will include the Texas Rangers
franchise and substantially all contractual rights related the
operation of the Texas Rangers. The aggregate consideration paid
and obligations assumed by the Purchaser at the Closing will equal
more than $500 million.
The sale is expected to close mid-summer. The deal is subject to
approval of the Office of the Commissioner of Baseball and 75% of
the Major League Baseball clubs.
The Debtor also has filed a prepackaged plan, which sets forth the
distribution that each class of the Debtor's creditors and equity
holders is to receive on the Effective Date under the Prepackaged
Plan. All TRBP's creditors will be paid in full under the
Prepackaged Plan or have their claims assumed by the Purchaser
under the Asset Purchase Agreement. Specifically, each holder of
an (i) Allowed Priority Non-Tax Claim, (ii) Allowed First Lien
Holder Claim, (iii) Allowed Second Lien Holder Claim, (iv) Allowed
MLB Prepetition Claim, (v) Allowed Secured Tax Claim, (vi) Allowed
Other Secured Claim, (vii) Allowed Assumed General Unsecured
Claim, (viii) Allowed Non-Assumed General Unsecured Claim, (ix)
Allowed Emerald Diamond Claim, (x) Allowed Overdraft Protection
Agreement Claim, (xi) Allowed Intercompany Claim, and (xii)
Allowed TRBP Equity Interest is unimpaired and will be paid in
full.
TRBP believes that because the Prepackaged Plan satisfies in full
all claims against TRBP, is supported by TRBP's equity holders,
and will lead to the least disruption to the Texas Rangers'
business of playing baseball, the Prepackaged Plan is in the best
interests of the Texas Rangers franchise and all parties in
interest.
A full-text copy of the Texas Ranger's Plan is available at no
charge at http://bankrupt.com/misc/TEXASRANGERS_ds.pdf
A full-text copy of the disclosure statement is available at no
charge at http://bankrupt.com/misc/TEXASRANGERS_plan.pdf
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.
THE ESTATES OF LAKE BLALOCK: Lender Gets Relief from Stay
---------------------------------------------------------
WestLaw reports that a lender holding a mortgage on a 96.97 acre
tract that the debtor was in the process of developing as
residential lots at the time of its Chapter 11 filing was entitled
to relief from the stay in order to proceed with a foreclosure
sale, based on the debtor's lack of equity in the property and
inability to successfully reorganize other than by selling lots,
something which it could not do without completing essential
elements of the development for which it had been unable to obtain
funding. In order for property to be "necessary for an effective
reorganization," so as to preclude lifting of the stay based on
the debtor's lack of equity therein, reorganization must be within
reasonable prospect. In re The Estates of Lake Blalock, LLC, ---
B.R. ----, 2010 WL 2109382 (Bankr. D. S.C.) (Waites, J.).
At the hearing on the Motion for Relief from Stay, Lakeland
Construction Finance, LLC, the Lender, offered into evidence two
appraisals of the Property. The first appraisal, dated Apr. 9,
2009 and prepared by James B. Mayo, provides an estimated "as is"
value of the Property of $3,035,000. The second appraisal, dated
Jan. 26, 2010 and also prepared by James B. Mayo, provides that
the estimated "as is" value is $2,415,000. The Debtor offered
into evidence an appraisal prepared by Glenn Gowan, dated Dec. 15,
2009, which provides that the estimated total present net worth is
$10,000,000. Further testimony was also presented indicating that
the costs of completing the project were significant, that the
Debtor had been unable to obtain funding to complete the project,
and that no lots were currently under contract for sale. Lakeland
presented the testimony of Don Worley, the project engineer, who
stated that no certified plat had yet been approved by Spartanburg
County, which was a prerequisite to any lot sales. Mr. Worley
estimated that the cost of completion of essential elements of the
subdivision in order for the Debtor to obtain a bonded plat would
be $88,000, and without such plat, the Debtor would be unable to
sell any lots. Finding that the Debtor has no equity in the
Property, the Honorable John E. Waites lifted the automatic stay
pursuant to 11 U.S.C Sec. 362(d)(1) and (2) to allow the Lender to
foreclose on its mortgage loan.
The Estates of Lake Blalock, LLC, filed a chapter 11 petition
(Bankr. D. S.C. Case No. 09-08987) on Dec. 1, 2009. The Debtor's
petition indicates that it is a single asset real estate case as
defined by 11 U.S.C. Sec. 101(51B). As reported in the Troubled
Company Reporter on Dec. 4, 2009, the Debtors Schedules show
$7,200,112 in assets and $5,701,868 in liabilities. G. William
McCarthy, Jr., Esq., and Sean P. Markham, Esq., at McCarthy Law
Firm in Columbia, S.C., represent the Debtor.
TRIBUNE CO: Bondholders Seek to Block Plan at the FCC
-----------------------------------------------------
Bill Rochelle at Bloomberg News reports that Tribune Co.'s
bondholders told the Federal Communications Commission that the
newspaper publisher shouldn't be allowed to transfer broadcast
licenses. Creditors are voting on Tribune's reorganization plan
in anticipation of an Aug. 16 confirmation hearing. The plan,
filed in April, would implement a settlement negotiated with some
creditors. It is opposed by holders of $3.6 billion in prepetition
secured debt who announced their opposition even before the
settlement was formally disclosed.
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). Sidley Austin LLP serves as the Debtor's bankruptcy
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)
TRICO MARINE: Amends Credit Agreement with Nordea & Obsidian
------------------------------------------------------------
Trico Marine Services Inc. entered into with Nordea Bank Finland
PLC as collateral agent, and Obsidian Agency Services Inc. as
administrative agent, an amendment to the Credit Agreement dated
as of August 29, 2008, to:
i) consent to and reflect the resignation of Nordea as
administrative agent under the facility and the assumption
by Obsidian of all of Nordea's rights, interests,
liabilities and obligations as the administrative agent
under the Amended Credit Agreement,
ii) terminate the letter of credit facility under the Existing
Credit Agreement,
iii) convert the revolving credit commitments under the Existing
Credit Agreement to term loan commitments,
iv) increase the borrowing availability to Trico up to
$25,000,000,
v) increase the pricing margin under the Existing Credit
Agreement,
vi) replace the financial covenants with new financial
covenants, and
vii) add the Additional Guarantors as guarantors of the
indebtedness incurred by Trico pursuant to the Amended
Credit Agreement.
The Facility may be used by Trico to:
i) cash collateralize certain outstanding letters of credit
issued pursuant to the Existing Credit Agreement in an
amount up to 105% of the stated amount of such letters of
credit,
ii) to pay fees and expenses incurred in connection with the
entering into of the Amended Credit Agreement and
iii) for Trico's and its subsidiaries' general corporate and
working capital purposes.
Immediately after entering into the Amended Credit Agreement,
Trico borrowed the full term loan amount of $25,000,000 less a
hold-back of $500,000 pending resolution of certain due diligence
issues. Proceeds of the Amended Credit Agreement have been funded
into a blocked account. Trico must satisfy certain conditions in
order to access such funds including:
i) there having occurred no default or event of default,
ii) accuracy of all representations and warranties in all
material respects and
iii) not more than $1,000,000 on deposit in Trico's operating
accounts.
Trico may not request a release of funds from the blocked account
more than twice per week. Amounts in the blocked account may only
be released in accordance with a budget provided by Trico to the
lenders at closing of the Amended Credit Agreement.
The Facility's maturity date is December 31, 2011. The term loan
will bear interest at the one-month LIBOR rate plus a margin of
11.5%. The Facility is secured by first preferred ship mortgages
on certain vessels, the equity of TMA and TMO, 65% of the equity
of Trico Cayman, a pledge of an intercompany note between Trico
Supply AS and TMO, all deposit accounts of TMS, TMA and TMO and
guarantees from TMA, TMO and the Additional Guarantors.
The financial covenants in the Existing Credit Agreement were
replaced in the Amended Credit Agreement. The new financial
covenants include:
i) minimum consolidated EBITDA,
ii) minimum consolidated cash flow,
iii) a minimum cumulative consolidated cash flow and
iv) maximum capital expenditures.
The calculation of the financial covenants does not include Trico
Supply AS or its subsidiaries.
In addition, the Amended Credit Agreement contains other
covenants, including but not limited to, covenants limiting
Trico's and its subsidiaries' ability to incur additional
indebtedness, to create or incur certain liens on their property,
to consolidate, merge or transfer assets, to make dividends or
distributions, to dispose of property, to make investments, or to
engage in business activities materially different from those
presently conducted.
The Amended Credit Agreement provides that certain events,
including the failure to commence a voluntary case in the
Bankruptcy Court concerning each of Trico, TMA, TMO and Trico
Cayman prior to September 8, 2010, will be an Event of Default.
Also it is an Event of Default if Trico does not either:
i) file for bankruptcy protection or
ii) deliver forbearance agreements reasonably acceptable to the
lenders from holders of not less than 51% of the
outstanding principal amount of Trico's 8.125% secured
convertible debentures due 2013, in either case, within ten
business days after the closing of the Amended Credit
Agreement.
It is also an Event of Default if at any time Trico ceases
diligently to pursue a prepackaged plan of reorganization
acceptable to the lenders or if Trico fails to satisfy the
conditions precedent to the funding of the DIP Facility described
below within 30 days after the commencement of a voluntary
bankruptcy. During the continuance of an event of default, the
Lenders may take a number of actions, including declaring the
entire amount then outstanding under the Amended Credit Agreement
due and payable.
On June 11, 2010 the Company entered into:
i) a Reimbursement Agreement by and among Trico, TMA, TMO and
Nordea and
ii) a L/C Cash Collateral Agreement pursuant to which six
letters of credit with an aggregate stated amount of
$3,490,546.24 issued pursuant to the Existing Credit
Agreement were:
x) kept outstanding after the termination of the letter of
credit facility under the Existing Credit Agreement and
y) cash collateralized in an amount equal to 105% of the
stated amount of such letters of credit. Nordea has no
obligation to issue new letters of credit pursuant to
the Letter of Credit Agreements.
In anticipation of the possible filing of certain voluntary
petitions for relief under Chapter 11 of Title 11 of the United
States Code in a United States Bankruptcy Court by the Company and
certain of its affiliates including TMA, TMO, TMI, Holdco and
Trico Cayman on June 8, 2010 the Company entered into a commitment
letter dated as of June 7, 2010 with Tennenbaum DIP Opportunity
Fund, LLC. Pursuant to the Commitment Letter, Tennenbaum has
agreed, subject to the terms and conditions contained in the
Commitment Letter, to refinance certain indebtedness of Trico as
described in the Summary of Terms and Conditions of the Proposed
Debtor-in-Possession Term Loan Credit Facility. The following is
a summary of certain material terms of the debtor-in-possession
financing contemplated by the Term Sheet.
The Commitment Letter contemplates debtor-in-possession financing
in an aggregate amount of up to $50,000,000. The DIP Facility
would consist of:
i) an initial term loan tranche in the principal amount of
$35,000,000 and
ii) an additional term loan tranche in the principal amount of
up to $15,000,000. Tranche A would consist of new money
loans in the principal amount of $10,000,000 and loans to
refinance the loans incurred by Trico under the Amended
Credit Agreement in the principal amount of $25,000,000.
Tranche B would consist of new money loans of $15,000,000.
The DIP Facility would be guaranteed by all subsidiaries of
Trico other than Trico Supply AS and its subsidiaries.
The DIP Facility would be secured by:
i) a first priority lien over all assets that are not subject
to liens as of the time of filing of the U.S. Chapter 11
Cases,
ii) a priming lien on all assets that are encumbered by liens
securing the 8.125% Second Lien Convertible Debentures due
2013; provided that, as a result of the provisions of the
Intercreditor Agreement associated with such Convertible
Notes, such lien securing the new money Tranche B loans
would be junior to the liens securing the Convertible Notes
as of the commencement of the U.S. Chapter 11 Cases;
iii) a junior lien on all assets already subject to security
interests, excluding certain intercompany notes but
including liens on certain vessels to the extent the MARAD
notes are not repaid; and
iv) certain other unencumbered assets.
The DIP Facility would mature on the earlier to occur of:
i) the nine-month anniversary of the closing of the Amended
Credit Agreement;
ii) the effective date of any plan of reorganization with
respect to any Debtor;
iii) the closing date of a sale pursuant to Section 363 of the
Bankruptcy Code or otherwise of all or substantially all of
the assets of Trico or any of its subsidiaries;
iv) the date of conversion of any of the U.S. Chapter 11 Cases
to a case under Chapter 7 of the Bankruptcy Code;
v) the dismissal of any of the U.S. Chapter 11 Cases and
vi) the acceleration of the DIP Facility following an event of
default thereunder.
The maturity date may be extended by three months at Trico's
option so long as there is no Event of Default under the DIP
Facility at the time of such extension. An extension fee of 1.00%
of the DIP Facility would be due upon such extension.
The proceeds of the DIP Facility may be used by the Company:
i) to fund operating expenses and other working capital needs
of the Debtors in accordance with an agreed upon budget,
ii) to pay fees and expenses associated with DIP Facility,
iii) to refinance obligations under the Amended Credit
Agreement; and
iv) to repay up to $6,000,000 of MARAD notes in full and secure
the release of any related liens.
Loans under the DIP Facility would bear interest at the LIBOR rate
plus a margin of 9.5%. The financial covenants are expected to be
substantially the same as those set forth in Trico's credit
facility except that a minimum liquidity covenant will be added to
the DIP Facility.
Availability of the DIP Facility is subject to certain conditions
precedent including:
i) entry of Orders by the Bankruptcy Court approving the DIP
Facility;
ii) no occurrence, development or change since the date of the
Commitment Letter that, in Tennenbaum's commercially
reasonable judgment, has had or could be reasonably
expected to have a material adverse effect upon the
business, operations or financial condition of Trico and
its subsidiaries, taken as a whole;
iii) Tennenbaum not becoming aware of any new or inconsistent
information that Tennenbaum, in its commercially reasonable
judgment, deems material and adverse relative to the
previously delivered information;
iv) the accuracy in all material respects of all
representations that the Company and its affiliates made to
Tennenbaum;
v) the negotiation, execution and delivery of mutually
acceptable definitive loan documents relating to the DIP
Facility;
vi) receipt of fully executed forbearance agreements with
respect to any credit facilities or other material
outstanding indebtedness under which the commencement of
the U.S. Chapter 11 Cases or the consummation of the DIP
Facility would constitute a default or an event of default;
vii) no event of default having occurred under the Amended
Credit Agreement; and
viii) other conditions precedent typical for debtor-in-possession
credit facilities.
On June 13, 2010, the Company received an acknowledgment from the
holders of approximately 66% of the outstanding principal amount
of the Convertible Notes issued by the Company under that certain
Indenture, dated as of May 14, 2009, between the Company and U.S.
Bank National Association, as Trustee, that the grace period for
payment of interest on the Convertible Notes due May 15, 2010, but
payable May 17, 2010, expires on June 17, 2010. The holders of
the Convertible Notes also requested that the Trustee not take any
action inconsistent with the foregoing acknowledgment. In
exchange for this acknowledgment, the Company has agreed not to
enter into any new financing arrangements or amendments with
respect to the indebtedness of Trico under those certain 11.875%
senior secured notes due 2014 before June 16, 2010.
Nordea serves as administrative agent, book runner and joint lead
arranger under a credit agreement providing for up to $26,000,000
in revolving loans for which Trico Shipping AS is the borrower.
Affiliates of Tennenbaum serve as lenders under the Amended Credit
Agreement.
A full-text copy of the Amended Agreement is available for free
at http://ResearchArchives.com/t/s?64da
Woodlands, Texas-based Trico Marine Services is a provider of
support vessels for the offshore oil and natural-gas industry.
At March 31, 2010, the Company had total assets of $1,013,628,000
against total liabilities of $985,940,000.
TWIN TOWN: Case Summary & 7 Largest Unsecured Creditors
-------------------------------------------------------
Debtor: Twin Town Leasing Co.
3406 SW 9 Ave
Ft. Lauderdale, FL 33315
Bankruptcy Case No.: 10-26456
Chapter 11 Petition Date: June 11, 2010
Court: United States Bankruptcy Court
Southern District of Florida (Fort Lauderdale)
Judge: John K. Olson
Debtor's Counsel: Zach B. Shelomith, Esq.
2699 Stirling Rd # C401
Ft Lauderdale, FL 33312
Tel: (954) 920-5355
Fax: (954) 920-5371
E-mail: zshelomith@lslawfirm.net
Estimated Assets: $0 to $50,000
Estimated Debts: $1,000,001 to $10,000,000
A list of the Company's 7 largest unsecured creditors
filed together with the petition is available for free
at http://bankrupt.com/misc/flsb10-26456.pdf
The petition was signed by Clayton I. Gamber, company's president.
UAL CORP: Presents Update on Financial & Operational Outlook
------------------------------------------------------------
UAL Corporation provided an investor update related to its
financial and operational outlook for the second quarter of
2010. Among other things, the company said:
* second quarter 2010 consolidated available seat miles are
estimated to be up 0.9% year-over-year, and revenue passenger
miles are estimated to be up 2.8% to 3.8% year-over-year.
* consolidated passenger unit revenue to be up 26.0% to 27.0%
year-over-year for the second quarter, and mainline PRASM to
be up 28.0% to 29.0% year-over-year. About one percentage
point of this increase is due to accounting adjustments to be
booked in the month of June.
A full-text copy of the company's outlook is available for free
at http://ResearchArchives.com/t/s?64ea
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.
UNIVISION COMMUNICATIONS: Fitch Affirms 'B' Issuer Default Rating
-----------------------------------------------------------------
Fitch Ratings has affirmed these ratings of Univision
Communications, Inc.:
-- Issuer Default Rating at 'B';
-- Senior secured at 'B+/RR3';
-- Senior unsecured at 'CCC/RR6'.
The Rating Outlook is Stable.
The ratings incorporate Fitch's favorable outlook on the U.S.
Hispanic broadcasting industry, given expectations for continued
growth in size and spending power of the Hispanic demographic.
Univision benefits from a leading market position, with duopoly
television and radio stations in most of the top Hispanic markets,
and a national overlay of broadcast and cable networks. High
ratings and a concentrated Hispanic viewer base provide
advertisers with an effective way to target this segment of the
population. Fitch believes the top line and EBITDA pressures
experienced in 2008-2009 were cyclical and expects mid-single
digit revenue growth (excluding largely pass-through World Cup
revenue) and low/mid-teens EBITDA growth in 2010, driven by an
improvement in advertising revenue, growth in high-margin
retransmission fees, and the positive operating leverage embedded
in the broadcasting business.
Fitch's positive view extends through the intermediate term, with
expectations for ongoing mid-single digit annual revenue growth
and high-single/low-double digit annual EBITDA growth incorporated
into current ratings. As a result, while Fitch acknowledges that
Univision's current credit profile places it at the low end of the
ratings category, Fitch anticipates Univision's capital structure
will improve to one commensurate with a 'B' rating over the
intermediate term. That said, there is very little room at
current ratings for further operating challenges, cyclical or not,
and EBITDA growth below Fitch's expectations for a protracted
period would likely pressure ratings.
The company cleared several meaningful near-term hurdles in recent
years including: (i) debt service coverage (addressed by paid-in-
kind interest, which reduced cash interest expense by
approximately $150 million annually); (ii) a potential covenant
breach (covenants loosened with no pricing increase);
(iii) a $500 million October 2011 maturity (tendered with the
proceeds from a five-year secured debt issuance) and (iv) its
settlement with Grupo Televisa (which ensured the Program License
Agreement will remain in place until the 2017 maturity). However,
the economic downturn impeded Univision's growth path and the
company faces a significant maturity wall in 2014, including the
$7.45 billion term loan and $545 million of secured notes. With
expected annual free cash flow of $300 million-$400 million,
Univision clearly will be unable to handle this maturity
organically.
In addition to general heightened refinancing risk from the large
amount of leveraged loans maturing at this time, there are two
large hurdles that raise Univision's idiosyncratic refinancing
risk. First, the PLA with Televisa, through which Univision
obtains the content which drives the company's high ratings and
provides more than one-third of its advertising revenue, expires
in 2017. Absent a renegotiation of this agreement, or a viable
alternative pipeline of popular programming, Univision's
advertising revenue will be under significant pressure, and the
company will likely struggle to find financing post 2017. Second,
the PIK notes mature in 2015 (Fitch estimates approximately
$2 billion face value at maturity assuming maximum PIK), and Fitch
believes they will have to be addressed before the bank lenders
would agree to an extension of the term loan beyond this date.
Despite these challenges, Fitch currently believes the company
will likely be able to refinance the 2014 maturities. Fitch
anticipates that the private equity owners and the secured lenders
remain motivated to facilitate Univision's ongoing operation, as
refinancing an improved operating and credit profile will provide
more value than bankruptcy/debt restructuring. Underpinning this
position is Fitch's view that the company will be able to delever
to a range of 7 times (x)-9x total leverage or 5x-7x on a secured
basis by the 2014 maturity. Depending on the interest rate
environment and credit market conditions Fitch believes secured
lenders could be willing to re-commit capital at this level. This
view also incorporates expectations that the PLA overhang will be
resolved. Should it become clear in the company's operating
results over the next several quarters that Univision will be
unable to gain the traction necessary to grow its EBITDA and free
cash flow and delever to a point where it is a financially viable
business this would have negative ratings implications.
Additionally, should it become clear over the intermediate term
that the company will be unable to secure a guaranteed content
arrangement, this would result in significant ratings pressure.
Fitch believes Univision has several options regarding the PLA,
including 1) renewing and extending the agreement, likely at
significantly less favorable terms; 2) providing Televisa with a
minority ownership stake, which will incentivize Televisa to
ensure its viability; and 3) allowing the PLA to expire and
sourcing alternative content via other providers or original
programming, which Fitch views as the riskiest option, given the
risks inherent in content creation. Fitch believes Televisa will
have the negotiating leverage, given its position as the content
provider and Univision's need to address the PLA before the 2014
maturity. As a result, Fitch currently believes that the most
likely outcome will be for Televisa to take an equity stake in the
company, likely over the intermediate term.
Univision's maturity schedule through 2013 is minimal (mandatory
annual term loan amortization of $100 million-$200 million), and
Fitch believes that amortization and cash interest expense will be
easily covered by internal cash generation. Fitch expects the
company to PIK the interest on the unsecured 2015 notes through
the March 2012 allowable window. Univision therefore has a multi-
year cushion to strengthen its operating and credit profile in
order to best position itself to be able to refinance its 2014
maturities. Fitch believes that it is critical for the company to
achieve Fitch's anticipated operating momentum and credit profile
improvement in order to accomplish the refinancing.
Fitch regards current liquidity as adequate, particularly in light
of minimal near-term maturities. At March 31, 2010 liquidity
consisted of 1) $281 million of cash; 2) $120 million available
under the $300 million accounts receivable securitization
facility, of which $45 million expires in March 2012 and
$255 million expires in December 2013; and 3) $1.8 million
available under the $600 million revolving credit facility, which
expires March 2014. Fitch expects that going forward, annual free
cash flow should exceed $300 million, a significant improvement
from recent years. This improvement will be driven primarily by
the roll-off of the company's $7 billion of interest rate swaps as
well as the PIK option on the unsecured notes over the near term,
and bolstered by EBITDA growth over the medium term. Fitch
anticipates that free cash flow will be used primarily for
deleveraging, including mandatory amortization under the term loan
as well as some potential discretionary repayments.
Total debt of $10.5 billion at March 31, 2010 consisted primarily
of:
-- $7 billion senior secured term loan facility due September
2014;
-- $450 million senior secured draw term loan due September
2013;
-- $594 million outstanding under the RCF, due March 2014;
-- $511 million accreted value ($545 million face value) 12%
senior secured notes due July 2014;
-- $1.7 billion 9.75%/10.5% PIK senior unsecured notes March
2015; and
-- $180 million outstanding under the A/R securitization
facility, due December 2013.
Univision's recovery ratings reflect Fitch's expectation that the
enterprise value of the company, and hence, recovery rates for its
creditors, will be maximized in a restructuring scenario (going
concern), rather than a liquidation. Fitch employs a 7x
distressed enterprise value multiple reflecting the company's FCC
licenses in top U.S. markets. Fitch stresses March 31, 2010 LTM
EBITDA by 10%, which is approximately the level at which the
company would be unable to cover its fixed charges upon resumption
of cash pay on the PIK notes. Fitch estimates the adjusted
distressed enterprise valuation in restructuring to be
approximately $4.7 billion. The 'B+' rating for the secured
facilities reflects Fitch's expectations for recovery at the low
end of the 51%-70% range under a bankruptcy scenario. The 'CCC'
rating on the $1.7 billion senior unsecured notes reflects Fitch's
expectations for minimal recovery prospects due to their position
in the capital structure.
VALENCE TECHNOLOGY: PMB Helin Raises Going Concern Doubt
--------------------------------------------------------
PMB Helin Donovan LLP expressed substantial doubt about Valence
Technology Inc.'s ability as a going concern. The Company has
incurred operating losses each year since its inception in 1989
and had an accumulated deficit of $581 million as of March 31,
2010. For the fiscal years ended March 31, 2010, 2009, and 2008
the Company sustained net losses available to common stockholders
of $23.2 million, $21.4 million, and $19.6 million, respectively.
At March 31, 2010, the Company's principal sources of liquidity
were cash and cash equivalents of $3.2 million. The Company does
not expect that its cash and cash equivalents will be sufficient
to fund its operating and capital needs for the next twelve months
following March 31, 2010, nor does the Company anticipate product
sales during fiscal year 2010 will be sufficient to cover its
operating expenses. Historically, the Company has relied upon
management's ability to periodically arrange for additional equity
or debt financing to meet the Company's liquidity requirements.
The Company's balance sheet at March 31, 2010, showed
$21.0 million in total assets, $29.1 million in total current
liabilities, $27.3 million in long-term interest payable to
stockholder, $34.8 million in long-term debt to stockholder, and
$129,000 other long-term liabilities, for a stockholder's deficit
of $79.1 million.
The Company reported a net loss of $23.0 million on $16.0 million
of total revenues for the year ended March 31, 2010, compared with
a net loss of $21.2 million on $26.1 million total revenues during
the same period a year ago.
A full-text copy of the Company's news release is available for
free at http://ResearchArchives.com/t/s?64ce
A full-text copy of the company's Form 10-K for the year ended
March 31, 2010, is available for free at
http://ResearchArchives.com/t/s?64cd
About Valence Technology
Austin, Texas-based Valence Technology, Inc. (NASDAQ: VLNC) --
http://www.valence.com/-- is a global leader in the development
of safe, long-life lithium iron magnesium phosphate energy storage
solutions and provides the enabling technology behind some of the
world's most innovative and environmentally friendly applications.
Valence Technology has its Research & Development Center in
Nevada, its Europe/Asia Pacific Sales office in Northern Ireland
and global fulfillment centers in North America and Europe.
VISTEON CORP: Revises Plan to Woo Shareholders' Support
-------------------------------------------------------
Bill Rochelle at Bloomberg News reports that Visteon Corp. filed a
revised Chapter 11 plan, hoping to mollify existing shareholders
by offering them 1.94% of the stock if they vote in favor of the
reorganization. In return for a "yes" vote, existing shareholders
also would receive warrants to buy more stock for $51.59 a share.
Bloomberg notes that the structure of the revised plan is much the
same as before. The centerpiece is a proposal where bondholders
would control the reorganized company by providing $1.25 billion
cash.
A hearing to consider approval of the disclosure statement
explaining the Plan was scheduled for June 14.
About Visteon Corp.
Headquartered in Van Buren Township, Michigan, Visteon Corporation
(NYSE: VC) -- http://www.visteon.com/-- is a global automotive
supplier that designs, engineers and manufactures innovative
climate, interior, electronic and lighting products for vehicle
manufacturers, and also provides a range of products and services
to aftermarket customers. The Company has corporate offices in
Van Buren Township, Michigan (U.S.); Shanghai, China; and Kerpen,
Germany. It has facilities in 27 countries and employs roughly
35,500 people. The Company has assets of US$4,561,000,000 and
debts of US$5,311,000,000 as of March 31, 2009.
Visteon Corporation and 30 of its affiliates filed for Chapter 11
protection on May 28, 2009, (Bank. D. Del. Case No. 09-11786
through 09-11818). Judge Christopher S. Sontchi oversees the
Chapter 11 cases. James H.M. Sprayregen, Esq., Marc Kieselstein,
Esq., and James J. Mazza, Jr., Esq., at Kirkland & Ellis LLP, in
Chicago, Illinois, represent the Debtors in their restructuring
efforts. Laura Davis Jones, Esq., James E. O'Neill, Esq., Timothy
P. Cairns, Esq., and Mark M. Billion, Esq., at Pachulski Stang
Ziehl & Jones LLP, in Wilmington, Delaware, serve as the Debtors'
local counsel. The Debtors' investment banker and financial
advisor is Rothschild Inc. The Debtors' notice, claims, and
solicitation agent is Kurtzman Carson Consultants LLC. The
Debtors' restructuring advisor is Alvarez & Marsal North America,
LLC.
Bankruptcy Creditors' Service, Inc., publishes Visteon Bankruptcy
News. The newsletter tracks the Chapter 11 proceedings of Visteon
Corp. and its debtor-affiliates. (http://bankrupt.com/newsstand/
or 215/945-7000)
WASHINGTON MUTUAL: Renewed Call for Examiner Gets Many Objections
-----------------------------------------------------------------
Numerous objections have poured in to a renewed request by
Washington Mutual Inc. shareholders to appoint an examiner to
delve into the 2008 seizure and sale of the collapsed bank's
assets to JPMorgan Chase & Co, according to Bankruptcy Law360.
The official committee of shareholders refiled its request for
an examiner to investigate the merits of a proposed settlement
with the Federal Deposit Insurance Corp. and JPMorgan.
According to Bloomberg, the bankruptcy judge denied the
shareholders' examiner motion the first time around, saying that
WaMu and the creditors' committee already performed an
investigation. After WaMu declined to provide the shareholders'
panel with its analysis of the merits of the claims against the
FDIC and JPMorgan, the judge said June 3 it was time for another
examiner's motion.
A hearing is scheduled on June 17 to consider approval of the
disclosure statement explaining WaMu's Chapter 11 plan, which is
based on the global settlement.
About Washington Mutual
Based in Seattle, Washington, Washington Mutual Inc. --
http://www.wamu.com/-- is a holding company for Washington Mutual
Bank as well as numerous non-bank subsidiaries. The Company
operates in four segments: the Retail Banking Group, which
operates a retail bank network of 2,257 stores in California,
Florida, Texas, New York, Washington, Illinois, Oregon, New
Jersey, Georgia, Arizona, Colorado, Nevada, Utah, Idaho and
Connecticut; the Card Services Group, which operates a nationwide
credit card lending business; the Commercial Group, which conducts
a multi-family and commercial real estate lending business in
selected markets, and the Home Loans Group, which engages in
nationwide single-family residential real estate lending,
servicing and capital markets activities.
Washington Mutual Bank was taken over September 25 by U.S.
government regulators. The next day, WaMu and its affiliate, WMI
Investment Corp., filed separate petitions for Chapter 11 relief
(Bankr. D. Del. 08-12229 and 08-12228, respectively). Wamu owns
100% of the equity in WMI Investment. Weil Gotshal & Manges
represents the Debtors as counsel. When WaMu filed for protection
from its creditors, it listed assets of $32,896,605,516 and debts
of $8,167,022,695. WMI Investment listed assets of $500,000,000
to $1,000,000,000 with zero debts.
Peter Calamari, Esq., and David Elsberg, Esq., at Quinn Emanuel
Urquhart Oliver & Hedges, LLP, served as legal counsel to WMI with
responsibility for the litigation. Brian Rosen, Esq., at Weil,
Gotshal & Manges LLP served as legal counsel to WMI with
responsibility for the Chapter 11 case.
Bankruptcy Creditors' Service Inc. publishes Washington Mutual
Bankruptcy News. The newsletter tracks the Chapter 11 proceedings
of Washington Mutual Inc. (http://bankrupt.com/newsstand/or
215/945-7000).
WEST WINDS: Case Summary & 7 Largest Unsecured Creditors
--------------------------------------------------------
Debtor: West Winds Enterprises II, LLC
1940 Derita Road
Concord, NC 28075
Bankruptcy Case No.: 10-10688
Chapter 11 Petition Date: June 11, 2010
Court: United States Bankruptcy Court
Western District of North Carolina (Asheville)
Judge: George R. Hodges
Debtor's Counsel: Glenn C. Thompson, Esq.
Hamilton Moon Stephens Steele & Martin
201 S. College Street, Suite 2020
Charlotte, NC 28244-2020
Tel: (704) 227-1067
Fax: (704) 344-1483
E-mail: gthompson@lawhms.com
Estimated Assets: $10,000,001 to $50,000,000
Estimated Debts: $10,000,001 to $50,000,000
The petition was signed by A. Wayne Motley, Sr.
Debtor's List of 7 Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
------ --------------- ------------
Fifth Third Bank $4,775,746
6310 Fairview Road
Charlotte, NC 28210
Fifth Third Bank $2,538,615
6310 Fairview Road
Charlotte, NC 28210
RK Collection, LLC $78,498
The Lane Construction $15,283
Corporation
City of Concord $4,861
Allied Waste $469
Terminix $50
Debtor-affiliate that filed separate Chapter 11 petition:
Petition
Debtor Case No. Date
------ -------- ----
West Winds Enterprises, LLC 06/11/10
WESTLAKE CHEMICAL: Moody's Upgrades Corp. Family Rating to 'Ba1'
----------------------------------------------------------------
Moody's Investors Service upgraded the Corporate Family Rating of
Westlake Chemical Corporation to Ba1 from Ba2 due to better than
expected performance in 2009 and the expectation that credit
metrics will improve in 2010, largely due to better than expected
margins in the first half of the year. Moody's also assigned a
Ba2 rating to the $100 million Louisiana Local Government
Environmental Facilities and Community Development Authority
Revenue Bonds due August 2029, which are guaranteed by Westlake.
The ratings outlook is stable.
Moody's also raised the ratings for Westlake's $250 million
guaranteed senior unsecured notes due 2016 and $250 million LCDA
Revenue Bonds due 2032 to Ba2. The LGD point estimates for these
notes were also revised.
"Westlake continues to perform well despite exposure to extremely
volatile commodity plastics and the rating could move higher if
further investments by the oil and gas industry increases the
availability, and lowers the relative cost of ethane on the Gulf
Coast over the next several years," commented John Rogers, Senior
Vice President at Moody's.
The upgrade reflects better than expected performance in 2009 and
in the first half of 2010, with the expectation that 2010 and 2011
full year EBITDA will remain above $200 million, despite the
anticipation of a global trough in ethylene and polyethylene in
2011, due to new international capacity. Westlake's improved
outlook is largely due to the advantaged price of North American
natural gas liquids feedstocks relative to international naphtha
or other crude oil-based feedstocks over the next several years.
This advantage should allow Westlake and other North American
producers to generate higher cash margins in the coming trough
than in the prior trough (2000/2001). The upgrade also reflects
Moody's expectation that management will be guided by conservative
fiscal policies, which include the pre funding of any large
capital expenditures and the maintenance of elevated cash
balances.
Westlake's Ba1 CFR reflects its strong liquidity, vertical
integration, disciplined investment policy, higher operating rates
and less commoditized downstream product portfolio (LDPE, Epolene
and PVC pipe). The ratings are tempered by its exposure to
volatile feedstock and selling prices, the capital required to
build new ethylene or chlor alkali capacity, limited product
diversity, its size relative to other commodity plastics producers
(polyethylene and PVC), the regional nature of its operations, the
limited number and locations of its commodity chemical facilities,
and the worsening of global supply/demand dynamics in ethylene and
polyethylene over the next year.
The combination of its smaller size and substantial vertical
integration allows the company to maintain higher operating rates
over the cycle than many of its competitors. Westlake also
benefits from its position as the only fully back-integrated
producer of PVC resins (produces ethylene and chlorine) in North
America, as well as its forward integration into PVC fabricated
products, which provide a captive outlet for its resins.
Furthermore, Westlake's polyethylene assets are skewed toward LDPE
(60%), which usually generates higher margins, especially in the
trough of the cycle.
The stable outlook reflects Moody's belief that Westlake's
financial metrics will remain at levels near investment grade
levels over the next two years, largely due to the benefit from
low natural gas (energy costs) and related feedstock prices, as
well as a fairly robust export market for these commodities,
especially South America.
Ratings upgraded:
-- Westlake Chemical Corporation
-- Corporate Family Rating to Ba1 from Ba2
-- Probability of Default Rating to Ba1 from Ba2
-- 6.625% Guaranteed senior unsecured notes, $250 million due
2016 to Ba2 (LGD4, 68%) from Ba3
-- Louisiana Local Government Environmental Facilities and
Community Development Authority
-- 6.75% Senior unsecured tax-exempt revenue bonds, $250 million
due 2032 to Ba2 (LGD4, 68%) from Ba3
Rating assigned:
-- Louisiana Local Government Environmental Facilities and
Community Development Authority
-- Series 2009A Senior unsecured tax-exempt revenue bonds,
$100 million due 2029, Ba2 (LGD4, 68%)
Moody's last rating action for Westlake was on November 8, 2007,
when Moody's assigned a Ba3 rating to the $250 million LCDA
Revenue Bonds (Westlake Chemical Corporation Projects) Series
2007.
Westlake Chemical Corporation, headquartered in Houston, Texas, is
a producer of commodity petrochemicals (ethylene and styrene),
plastics (polyvinyl chloride and polyethylene), and fabricated
products (pipes, films and profiles). Revenues were $2.6 billion
for the LTM ended March 31, 2010.
WESTLAKE CHEMICAL: S&P Raises Corporate Credit Rating to 'BB+'
--------------------------------------------------------------
On June 15, 2010, Standard & Poor's Ratings Services raised its
ratings, including its corporate credit rating, on Westlake
Chemical Corp. to 'BB+' from 'BB'. The outlook is stable.
At the same time, S&P assigned its 'BB+' issue rating to the
company's proposed $100 million senior unsecured revenue bonds
maturing in 2032. The bonds are to be issued by the Louisiana
Local Government Environmental Facilities and Community
Development Authority, of the State of Louisiana. Westlake will
be the obligor on the bonds. The company expects to use proceeds
from the bonds, along with cash flow from operations, and a
portion of cash on the balance sheet, to fund a capital spending
program which includes a proposed $300 million chlor-alkali
expansion, and about $220 million in other capital expenditure
including debottlenecking of capacity.
"The upgrade reflects S&P's expectation that the improvement in
Westlake's operating performance and its leverage-related credit
metrics is sustainable," said Standard & Poor's credit analyst
Paul Kurias. Operating performance and credit ratios have
improved steadily over the past several quarters, from trough
levels achieved in 2009. As of March 31, 2010, the key ratio of
funds from operations to total adjusted debt was 40%, compared
with 11% in mid-2009. The improvement stems largely from higher
sales volumes following a partial recovery in the end markets for
Westlake's olefin/polyolefins and its vinyls businesses. A
relatively favorable environment with respect to input costs has
also benefitted the company.
The stable outlook reflects S&P's expectation for a steady but
gradual improvement in volumes and operating performance. S&P
does not factor in meaningful acquisitions or large capital
projects beyond those currently envisaged. Westlake's exposure to
adverse business cycles and narrow geographic focus in its
commodity petrochemicals remains a constraint on ratings. S&P
could lower the ratings if Westlake unexpectedly departed from its
stated financial policies or adopted business strategies to more
aggressively pursue growth in a manner that increased leverage.
S&P could also lower ratings if the current trend of improvement
in operating performance were reversed and operating margins
declined to mid-single-digit levels so that the ratio of funds
from operations to total debt declined below 20% on a sustainable
basis.
WEXTRUST CAPITAL: SEC Receivership May Block Involuntary Ch. 11
---------------------------------------------------------------
Bill Rochelle at Bloomberg News reports that a panel of the U.S.
Court of Appeals in Manhattan ruled June 15 that in a receivership
initiated by the Securities and Exchange Commission, a federal
court may properly prohibit creditors from filing an involuntary
bankruptcy petition. The 2nd Circuit in New York, according to
Mr. Rochelle, ruled that an injunction prohibiting bankruptcy
should be "sparsely exercised." Still, creditors, according to
the appeals court, have no "absolute right" to file a bankruptcy
petition.
The case involved the receivership of Wextrust Capital LLC, which
was alleged to be a $255 million Ponzi scheme. Although
prohibiting an involuntary bankruptcy filing by creditors, the
U.S. district judge said the SEC receiver could put Wextrust in
Chapter 11. If he did, the receiver would continue in control in
the Chapter 11 case.
About WexTrust Capital
Chicago, Illinois-based WexTrust Capital, LLC was a private equity
and specialty finance company specializing in investment
opportunities ranging from real estate to specialty finance and
investment banking.
WexTrust founders Joseph Shereshevsky and Joseph Byers were
arrested in August 2008 and accused of cheating investors in a
Ponzi scheme and were indicted on criminal charges by a federal
grand jury. The Securities and Exchange Commission has also
pursued a civil case against the two on allegations that they
operated a Massive Ponzi scheme that defrauded more than 1,000
investors of approximately $255 million. Both the civil and
criminal cases are pending before United States District Judge
Denny Chin in the Southern District of New York.
The Wextrust receivership -- http://www.wextrustreceiver.com/--
was created by order of the United States District Court for the
Southern District of New York on August 11, 2008. The Court has
appointed Timothy J. Coleman to act as Receiver for the Wextrust
group of companies. The Receiver is charged with managing the
Wextrust companies, and with taking other actions required by law
and by the Court's orders.
The SEC was represented by:
Alistaire Bambach, Esq.
Neal Jacobson, Esq.
Steven G. Rawlings, Esq.
Danielle Sallah, Esq.
Securities & Exchange Commission
New York Regional Office
Thee World Financial Center, Room 4300
New York, New York 10281
Attorneys for the Receiver are:
Martin J. Bienenstock, Esq.
Leo V. Gagion, Esq.
Mark S. Radke, Esq.
Dean C. Gramlich, Esq.
John K. Warren, Esq.
DEWEY & LEBOEUF LLP
1301 Avenue of the Americas
New York, New York 10019-6092
The International Ad-Hoc Committee of Wextrust Creditors were
represented by
Shalom Jacob, Esq.
Shumuel Vasser, Esq.
DECHERT LLP
1095 Avenue of the Americas
New York, New York 10036
Attorneys for the Int'l Consortium of Wextrust Creditors are:
Martin S. Siegel, Esq.
BROWN RUDNICK LLP
Seven Times Square
New York, New York 10036
WILLIAM IYASERE: Case Summary & 20 Largest Unsecured Creditors
--------------------------------------------------------------
Joint Debtors: William O. Iyasere
Blessing A. Iyasere
9504 Nordman Way
Elk Grove, CA 95624
Bankruptcy Case No.: 10-35362
Chapter 11 Petition Date: June 11, 2010
Court: United States Bankruptcy Court
Eastern District of California (Sacramento)
Judge: Robert S. Bardwil
Debtor's Counsel: Matthew R. Eason, Esq.
1819 K St #200
Sacramento, CA 95811
Tel: (916) 438-1819
Scheduled Assets: $1,619,671
Scheduled Debts: $4,387,911
A list of the Company's 20 largest unsecured creditors
filed together with the petition is available for free
at http://bankrupt.com/misc/caeb10-35362.pdf
The petition was signed by William O. Iyasere and Blessing A.
Iyasere.
WISH I: Stay Lifted on Asset Cued Chapter 11 Case Dismissal
-----------------------------------------------------------
The U.S. Bankruptcy Court for the Northern District of Illinois
dismissed the Chapter 11 case of WISH I LLC.
As reported in the Troubled Company Reporter on May 24, 2010, the
U.S. Trustee for Region 11 sought for the dismissal or conversion
of the case to one under Chapter 7 of the Bankruptcy Code because:
-- the stay was lifted on the Debtor's primary real estate and
the Debtor therefore cannot effectuate a successful
reorganization; and
-- the Debtor has not file operating reports.
Chicago, Illinois-based WISH I LLC filed for Chapter 11 bankruptcy
protection on March 25, 2010 (Bankr. N.D. Ill. Case No. 10-13076).
Bryan Minier, Esq., at Smith Amundsen LLC, assists the Company in
its restructuring effort. The Company estimated its assets and
debts at $10,000,001 to $50,000,000.
WOLF HOLLOW: Moody's Affirms 'B2' Rating on $279 Mil. Facilities
----------------------------------------------------------------
Moody's Investor's Service affirmed Wolf Hollow's B2 rating on its
$279 million 1st lien credit facilities and downgraded Wolf
Hollow's $110 million 2nd lien rating to Caa1. The outlook is
negative.
The affirmation of the 1st lien ratings reflects sound operational
performance over the last two years which has resulted in improved
financial performance. Forced outage rates declined from 6% to
less than 2% in the last two years largely through efforts by NAES
who took over as plant operator. Financial improvement ensued
with EBITDA increasing from $16 million and $21 million in 2007
and 2008, respectively, to nearly $28 million in 2009. Management
forecasts EBITDA of close to $30 million for 2010.
Despite the operational and financial improvements in EBITDA, debt
paydown has been considerably less than expected. The project's
original forecasts included 1st lien debt declining from roughly
$180/kw at financial close in 2005 to $92/kw by expiration of the
J.Aron contract in December 2010. Given only a de minimus 1%
mandatory amortization since the financing in 2005, first lien
debt is only expected to be around $165/kw by contract expiration.
Consolidated debt service coverage also remains weak at around
1.0x according to Moody's calculations. The project maintains
compliance with its financial covenants requiring a minimum 1.20
times debt service coverage ratio since the credit agreement
allows certain O&M and CAPEX costs to be excluded. The project is
also in compliance with its leverage ratio covenant of 8.50x.
The downgrade of the 2nd lien and resultant wider notching
incorporates greater refinancing risk to Wolf Hollow given the
lower than expected delevering of 1st lien debt. This puts 2nd
lien holders in a weaker recovery position in the event of a
default. The ERCOT market continues to show weaker than expected
power prices due to low gas prices and expectations that gas will
remain depressed in 2011. Reserve margins are above 20%, well
above the target reserve margin of 12.5% indicating plenty of
excess generating capacity available to meet current load and
therefore limiting upward pricing pressure that would benefit the
project.
The negative outlook reflects Moody's expectations that 2011
EBITDA will be significantly less than 2010 EBITDA guidance of
approximately $30 million. Barring significant improvement in
power prices from their current level, the project is likely to
face challenges meeting their covenant compliance tests over the
next 18 month period. The project continues to benefit however
from undrawn six-month debt service reserves at both the 1st and
2nd lien level as well as approximately $15 million remaining
under the revolving credit facility.
Wolf Hollow is a 730 MW natural gas-fired combined-cycle power
generation facility located in the Electric Reliability Council of
Texas North control area, approximately 30 miles southwest of Fort
Worth, Texas. Wolf Hollow is wholly-owned by funds managed by
Stark Investments.
The last rating action was on October 9, 2008, when Moody's
downgraded Wolf Hollow's 1st and 2nd lien debt to B2 and B3,
respectively and placed a negative outlook.
WORKSTREAM INC: Jerome Kelliher Resigns as Chief Financial Officer
------------------------------------------------------------------
Workstream Inc. said that Jerome P. Kelliher has resigned from his
position as the Company's Chief Financial Officer. Mr. Michael
Mullarkey will assume the duties of interim Chief Financial
Officer, effective June 4, 2010, replacing Mr. Kelliher. Mr.
Mullarkey is currently the Company's President and Chief Executive
Officer as well as the Chairman of the Company's Board of
Directors.
"I would like to thank Jerome for his contributions," said
Mr. Mullarkey. "He has been a valuable member of our team and we
wish him great success in his future endeavors."
Maitland, Fla.-based Workstream Inc. (OTC BB: WSTM) --
http://www.workstreaminc.com/-- provides enterprise workforce
management solutions and services that help companies manage their
human capital management function.
According to the Troubled Company Reporter on April 21, 2010,
Workstream Inc. filed on April 14, 2010, its quarterly report on
Form 10-Q for the three months ended February 28, 2010. The
Company's balance sheet at February 28, 2010, showed
$14,564,794 in assets and $30,051,615 of debts, for a
stockholders' deficit of $15,486,821.
YELLOW MEDIA: S&P Assigns 'BB+' Rating on CDN200 Mil. Debentures
----------------------------------------------------------------
Standard & Poor's Ratings Services said it assigned its 'BB+'
debt rating to Montreal-based Yellow Media Inc.'s proposed
CDN200 million 6.25% convertible unsecured subordinated debentures
due Oct. 1, 2017. Net proceeds of the issuance will likely be
used to repay debt, including amounts outstanding under the
company's commercial paper program; to fund the early redemption
of the C$86.5 million 5.5% exchangeable unsecured subordinated
debentures outstanding due Aug. 1, 2011; and for general corporate
purposes. The debenture offering is scheduled to close on or
about July 8, 2010.
At the same time, S&P affirmed all other ratings including its
'BBB-' long-term corporate credit rating on Yellow Media. The
outlook on Yellow Media is stable. At March 31, 2010, the
company had C$2.3 billion of reported third-party debt and about
C$3.2 billion of Standard & Poor's adjusted debt.
The proposed debentures are subordinated to the senior
indebtedness of Yellow Media and rank pari passu with the 5.5%
exchangeable debentures that S&P believes will be redeemed on
Aug. 1, 2010 (as announced by the company on June 8, 2010). The
'BB+' rating on the proposed debentures (one notch below the
corporate credit rating of the company) takes into consideration
the subordinated ranking of the securities and is consistent with
Standard & Poor's corporate ratings criteria as well as issue-
level notching guidelines for investment-grade corporate entities.
"The ratings on Yellow Media reflect what S&P views as the
company's 'satisfactory' business risk profile, supported by its
position as the leading publisher of telephone directories in
Canada and national provider of classified advertising; good
execution as it relates to the migration of print to digital and
online while protecting its sizable customer and revenue base; and
its track record of sustaining strong operating margins and
generating substantial cash flow at its core directories
operations," said Standard & Poor's credit analyst Madhav Hari.
"These factors are partially offset by what S&P views as Yellow
Media's 'significant' financial risk profile characterized by its
relatively high adjusted debt to EBITDA, weak cash flow protection
measures for the ratings, and the company's historical acquisitive
growth strategy," Mr. Hari added.
Yellow Media is indirectly 100%-owned by Yellow Pages Income Fund
and represents YPIF's sole asset. On or about Nov. 1, 2010,
pursuant to the fund's previously announced plan of arrangement,
S&P expects YPIF to convert from an income trust structure into a
corporate structure and thereafter amalgamate with Yellow Media.
Yellow Media is a holding company that conducts its business
exclusively through its 100%-owned operating subsidiaries: Yellow
Pages Group Co., Canada's largest directories publisher, with more
than 340 directories and a circulation of about 30 million; and
Trader Corp., which comprises a national platform in the
classified advertising business, with more 160 publications and 20
websites. For the 12 months ended March 31, 2010, Yellow Media
reported C$1.64 billion in revenue and EBITDA of C$889 million.
The stable outlook reflects S&P's opinion that Yellow Media should
be able to sustain its solid business risk profile and keep profit
margins stable. Specifically, in the next two years S&P project
flat-to-modestly higher overall revenue and stable EBITDA margins.
Under these parameters, S&P expects that the company's decision to
reduce shareholder distributions and reduce debt should allow
adjusted debt to EBITDA to improve to S&P's 3x target for the
ratings by year-end 2011. S&P's consideration of a near-term
upgrade is constrained by still-weak credit measures and the
timing to potentially achieve an improved balance sheet given
S&P's current revenue targets. Downward pressure on the ratings
would likely come from deteriorating operating performance,
possibly driven by the recession worsening or from a non-Yellow
Media-captured accelerated shift of advertising spending from
print directories to online offerings.
YRC WORLDWIDE: To Achieve Positive Adjusted EBITDA for 2nd Quarter
------------------------------------------------------------------
YRC Worldwide Inc. confirmed that the company will achieve
positive adjusted EBITDA on a consolidated basis and positive
operating income for its Regional Transportation segment for
second quarter of 2010. While the company expects positive
adjusted EBITDA for the quarter, it also expects its working
capital expenditures, cash interest, advisor fees and other
payments to produce a net cash usage from operating activities.
The company also reported that it has amended its asset-backed
securitization facility to modify certain calculations to reduce
the impact of negative effects that the integration of Yellow
Transportation and Roadway has had on the ability of the company
to borrow under the facility. As a result of this amendment, the
company will be able to borrow additional amounts under the
facility during the remainder of the second quarter. As of
June 11, 2010, the incremental availability under the ABS facility
after giving effect to these modifications would have been
$22 million.
"We continue to see positive developments in our business as our
June volume trends are exceeding our May volume trends," said
Chairman, President and CEO Bill Zollars. "The incremental
liquidity from the ABS amendment helps to support our working
capital needs as we grow our revenues. With the operating
momentum we are experiencing, we are confident in our ability to
generate positive adjusted EBITDA in the second quarter of 2010."
Driven primarily by the need to fund working capital for business
growth, the expected net cash usage from operating activities
creates liquidity pressure for the company. In addition to the
liquidity that the amendment to the ABS facility provides, the
company is seeking to address its short-term liquidity needs
through a combination of one or more of the following actions:
* Implementing further cost actions and efficiency improvements
* Seeking additional and return business from customers
* Engaging in discussions with the company's lending group under
its credit agreement
* Pursuing the sale of non-strategic assets or business lines
* Actively managing receipts and disbursements, including
amounts and timing, focusing on reducing day's sales
outstanding and managing day's payables outstanding
* Pursuing the company's litigation against the trustee under
the indenture related to the company's 5% contingent
convertible notes; if the company is successful in its
litigation and meets the closing conditions under a note
purchase agreement to sell and issue additional 6% convertible
notes, the company can utilize the remaining $20.2 million of
proceeds held in an escrow for general corporate purposes.
* Considering the sale of additional equity or pursuing other
capital market transactions
Certain Non-GAAP financial measures
Adjusted EBITDA is a non-GAAP measure that reflects the company's
earnings before interest, taxes, depreciation, and amortization
expense, and further adjusted for letter of credit fees, equity
based compensation expense, net losses on property disposals and
certain other items as defined in the company's credit agreement.
Adjusted EBITDA is used for internal management purposes as a
financial measure that reflects the company's core operating
performance. In addition, management uses adjusted EBITDA to
measure compliance with financial covenants in the company's
credit agreement. However, this financial measure should not be
construed as a better measurement than operating income or
earnings per share, as defined by generally accepted accounting
principles.
The company said, "Adjusted EBITDA has the following limitations:
* Adjusted EBITDA does not reflect the significant interest
expense or the cash requirements necessary to service interest
or principal payments on our outstanding debt;
* Although depreciation and amortization are non-cash charges,
the assets being depreciated and amortized will often have to
be replaced in the future, and Adjusted EBITDA does not
reflect any cash requirements for such replacements;
* Equity based compensation is an element of our overall long-
term incentive compensation package, although we exclude it as
an expense when evaluating our ongoing operating performance
for a particular period; and
* Other companies in our industry may calculate Adjusted EBITDA
differently than we do, limiting its usefulness as a
comparative measure.
Because of these limitations, Adjusted EBITDA should not be
considered a substitute for performance measures calculated in
accordance with GAAP. We compensate for these limitations by
relying primarily on our GAAP results and using Adjusted EBITDA as
a secondary measure."
About YRC Worldwide
Headquartered in Overland Park, Kan., YRC Worldwide Inc. (NASDAQ:
YRCW) -- http://www.yrcw.com/-- is a holding company that through
wholly owned operating subsidiaries offers its customers a wide
range of transportation services. These services include global,
national and regional transportation as well as logistics.
The Company's balance sheet as of March 31, 2010, showed
$2.919 billion in assets and $3.024 billion of liabilities, for a
stockholders' deficit of $104.9 million.
* * *
As reported in the Troubled Company Reporter on March 18, 2010,
KPMG LLP, in Kansas City, Missouri, expressed substantial doubt
about YRC Worldwide's ability to continue as a going concern in
its report on the Company's consolidated financial statements as
of and for the year ended December 31, 2009. The independent
auditors noted that the Company has experienced significant
declines in operations, cash flows, and liquidity.
* CIT's Bielinski Says M&A Deals for Restaurants on the Rise
------------------------------------------------------------
Consumers in search of value and quality are driving a comeback in
sales in the restaurant sector, according to Bob Bielinski,
Managing Director, Corporate Finance -- Restaurant Industry
Practice for CIT Group Inc. This is just one of the insights Mr.
Bielinski offers in "The Impact of the Market Downturn on the U.S.
Restaurant Sector," the latest in a series of in-depth executive
Q&As featured in CIT's "Executive Spotlight" series
http://executive-spotlight.cit.com
Mr. Bielinski explains how the economic recovery is producing
increased sales and M&A activity in the restaurant sector, saying,
"In some cases, sales are coming back faster than expected. I
expected anemic sales through the first half of the year, but the
most recent economic data indicates that the consumer has resumed
spending. In addition, the M&A market for restaurants is getting
hot very quickly. There were more notable restaurant deals in the
market during the first quarter than the total number of notable
deals completed last year."
He suggests that consumers with a limited budget and many options
will favor brands that offer a high-quality dining experience at
their price point, noting, "Consumers have too many choices today
to be satisfied with sub-par or even average execution. With unit
growth opportunities more limited and profit pressure hopefully
subsiding with improved sales, management teams need to focus on
restaurant-level execution. At the end of the day, it's all about
the consumer's experience."
* $3.3-Bil. in Claims Changed Hands in May, SecondMarket Says
-------------------------------------------------------------
SecondMarket Inc. said in its claims trading report for May that
following a record-setting month in April, the claims trading
market did its best to keep pace in May. Although the number of
recorded transfers dipped below 1,000 for the first time since
January, the total face value of claims traded was above $3.0
billion for the second consecutive month. There were 917 claim
transfers logged in the month of May with a total face value of
$3.3 billion. Claim transfers were recorded in 47 unique Chapter
11 cases including nine cases that traded for the first time.
SecondMarket, which began keeping records in January 2008, said
Lehman Brothers Holdings continued to lead all cases in dollar
value of claims traded with $3.0 billion and moved into the top
spot in number of claims transferred with 237 transfers. Circuit
City Stores Inc. was among the most actively traded cases by
dollar amount for the second straight month with $19.6 million in
trades. A rival plan of reorganization was recently submitted by
the Official Committee of Unsecured Creditors.
SecondMarket adds that amidst a legal battle over its proposed
reorganization plan, Smurfit-Stone Container Corp. dropped to the
third spot in number of claims transferred with 130 transfers, the
lowest amount since September 2009. Smurfit had been averaging 363
transfers per month over the last six months. Sterling Mining Co.
entered the top 10 with 21 claims transferred after being acquired
by Silver Opportunities Partners LLC in the beginning of the
month.
A full-text copy of the report is available for free at:
http://bankrupt.com/misc/SM_ClaimsReport_May2010.pdf
* S&P's Weakest Links Continue Downward Trend in June 2010
----------------------------------------------------------
The number of global weakest links continues to drop throughout
2010. Weakest links totaled 156 as of June 10, down from 161 in
May and 290 a year ago, said an article published June 16 by
Standard & Poor's, titled "Global Bond Markets' Weakest Links And
Monthly Default Rates (Premium)." The 156 weakest links have
combined rated debt worth $166.81 billion.
Weakest links are issuers rated 'B-' and lower with a negative
outlook or ratings on CreditWatch negative.
The U.S. leads in the number of weakest links, with 107 of the 156
entities, or 69%. By sector, media and entertainment; banks;
consumer products; chemicals, packaging, and environmental
services; and finance companies were the most vulnerable, with the
highest concentrations of weakest links.
So far in 2010 (through June 10), 42 issuers have defaulted. Of
these, 30 are from the U.S., three each are from Canada and New
Zealand, and one each is from Argentina, Australia, Ireland, the
Netherlands, Indonesia, and Bahrain.
"The 12-month-trailing global corporate speculative-grade default
rate fell to 5.71% in May 2010 from 6.96% in April--its sixth
consecutive monthly decline," said Diane Vazza, head of Standard &
Poor's Global Fixed Income Research.
"After a strong start to 2010, global new issuance among corporate
speculative-grade-rated entities has slowed in the second quarter,
with a total of just $49.2 billion in new issuance through June
10," said Ms. Vazza. "This compares with $79.5 billion in the
first quarter."
In May 2010, 23 corporate speculative-grade deals came to the
market, raising $7.9 billion, following 70 deals in April worth
$40 billion. Recent market volatility appears to be dampening the
momentum of new speculative-grade deals that are coming to market.
* S&P Warns of Rising Corporate Defaults
----------------------------------------
Standard & Poor's Ratings Services believes that with the more
than $1.7 trillion in bonds and loans maturing in 2011 to 2014,
some companies at the low end of the ratings scale may find it
difficult to refinance at the rates they'll need for long-term
survival -- if they can find financing at all, according to a
special report to be published in the June 23, 2010 edition of
CreditWeek.
The total debt coming due for rated U.S. borrowers will climb
steadily through the next four years, peaking at more than
$550 billion in 2014, after what S&P views as more manageable
levels through the end of next year. More importantly, as this
wave of refinancing surges, Standard & Poor's expects the
proportion of debt in the speculative-grade category ('BB+' and
lower) will continue to grow.
The New York Times' DealBook, citing the S&P report, says in 2011,
there will be about $300 billion in debt due, of which 41% is
considered speculative. But by 2014, the amount of debt due
climbs to about $550 billion, 72% of which is speculative.
"We believe that many borrowers at the low end of the ratings
scale will encounter serious hurdles to their refinancing needs in
2013 and 2014," said Standard & Poor's Managing Director John
Bilardello. "Unlike investment-grade entities, for which the main
issue is the rising cost of capital, speculative-grade borrowers
may find that financial institutions and investors are wary of
lending to them."
The articles in the special report, titled "Corporate
Refinancings: The Trillion Dollar Question," will appear in the
June 23 edition of Standard & Poor's CreditWeek and will be
published on Standard & Poor's electronic
product, RatingsDirect, in the coming days.
* Duff & Phelps Acquires Canada's Cole & Partners
-------------------------------------------------
Duff & Phelps Corporation has acquired Cole & Partners, a Toronto-
based independent financial advisory practice comprised of
approximately 20 client service professionals. The acquisition
establishes a Canadian presence for Duff & Phelps and
strategically aligns with key growth areas in dispute consulting,
valuation services and corporate finance advisory. Terms of the
transaction were not disclosed.
"Over the past 35 years, Cole & Partners has earned an
unparalleled reputation in Canada for bringing independent,
practical solutions to complex financial and business issues,"
said Noah Gottdiener, chairman and chief executive officer of Duff
& Phelps. "This is uniquely true with respect to business
valuation and financial litigation support--practice areas that
will integrate seamlessly with our core competencies. Through
Cole & Partners, we have also established a platform to enter the
Canadian market, where we see meaningful expansion opportunities."
Founded in 1975, Cole & Partners focuses on providing a broad
range of financial advisory services, with particular expertise in
business valuation, financial litigation support, corporate
financial advisory and forensic and investigative accounting. The
company serves a diverse client base from large, publicly traded
companies to private businesses to legal and accounting firms.
Following a transition period, Cole & Partners will operate as
Duff & Phelps.
Commenting on the acquisition, Andrew Freedman, a founding
partner, added: "For more than three decades, Cole & Partners has
built a culture of professionalism, analytical rigor and client
service. We are delighted to join Duff & Phelps, a firm that
shares these values and will facilitate broader service line
offerings and expanded industry expertise to our clients and
referral sources. I look forward to working closely with my new
colleagues to introduce Duff & Phelps to Canada and growing the
practice in the coming years."
About Duff & Phelps
As a leading global independent provider of financial advisory and
investment banking services, Duff & Phelps delivers trusted advice
to its clients principally in the areas of valuation,
transactions, financial restructuring, dispute and taxation.
About Cole & Partners
Cole & Partners is one of Canada's leading independent financial
advisory practices. Since its establishment in 1975, the Firm has
earned a reputation for candid opinions and clear, practical
solutions to complex financial and business issues. Cole &
Partners provides a broad range of financial advisory services and
specialize in business valuation, financial litigation support,
corporate financial advisory and forensic and investigative
accounting.
* Chapter 11 Cases with Assets & Liabilities Below $1,000,000
-------------------------------------------------------------
Recent Chapter 11 cases filed with assets and liabilities below
$1,000,000:
In Re High Desert Estates LLC
Bankr. C.D. Calif. Case No. 10-33370
Chapter 11 Petition Filed June 8, 2010
See http://bankrupt.com/misc/cacb10-33370.pdf
In Re Thai Ventures 002 LLC
Bankr. C.D. Calif. Case No. 10-17769
Chapter 11 Petition Filed June 8, 2010
See http://bankrupt.com/misc/cacb10-17769.pdf
In Re Masjid Al Rasool
Bankr. N.D. Calif. Case No. 10-55967
Chapter 11 Petition Filed June 8, 2010
See http://bankrupt.com/misc/canb10-55967.pdf
In Re Spring Street Recycling, LLC
Bankr. D. Conn. Case No. 10-31723
Chapter 11 Petition Filed June 8, 2010
See http://bankrupt.com/misc/ctb10-31723.pdf
In Re Christopher J. Tigani
Bankr. D. Del. Case No. 10-11855
Chapter 11 Petition Filed June 8, 2010
Filed As Pro Se
In Re Level Salon and Spa, Inc.
dba Level 2 SalonSpa
fdba Salon Exclusives, Inc.
Bankr. M.D. Fla. Case No. 10-13767
Chapter 11 Petition Filed June 8, 2010
See http://bankrupt.com/misc/flmb10-13767.pdf
In Re Streetcar Charlies, LLC
Bankr. M.D. Fla. Case No. 10-13685
Chapter 11 Petition Filed June 8, 2010
See http://bankrupt.com/misc/flmb10-13685.pdf
In Re 731 Randolph, LLC
Bankr. N.D. Ill. Case No. 10-25977
Chapter 11 Petition Filed June 8, 2010
See http://bankrupt.com/misc/ilnb10-25977.pdf
In Re 733 Randolph LLC
Bankr. N.D. Ill. Case No. 10-25976
Chapter 11 Petition Filed June 8, 2010
See http://bankrupt.com/misc/ilnb10-25976.pdf
In Re 735 Randolph LLC
Bankr. N.D. Ill. Case No. 10-25974
Chapter 11 Petition Filed June 8, 2010
See http://bankrupt.com/misc/ilnb10-25974.pdf
In Re American Custom Publishing Corporation
Bankr. N.D. Ill. Case No. 10-25917
Chapter 11 Petition Filed June 8, 2010
See http://bankrupt.com/misc/ilnb10-25917.pdf
In Re Rahul Pratap Singh
Christina Lynn Singh
Bankr. D. Kan. Case No. 10-11929
Chapter 11 Petition Filed June 8, 2010
See http://bankrupt.com/misc/ksb10-11929.pdf
In Re Tracy L. Hurst
aka Tracy Lee Hurst
aka Tracy L Hurst
aka Tracy Lee Rouse
Bankr. D. Nev. Case No. 10-20635
Chapter 11 Petition Filed June 8, 2010
Filed As Pro Se
In Re 225 Linwood LLC
Bankr. E.D. N.Y. Case No. 10-74389
Chapter 11 Petition Filed June 8, 2010
Filed As Pro Se
In Re David Alan Pearlman
dba Scorpion Sales
Bankr. W.D. Texas Case No. 10-31178
Chapter 11 Petition Filed June 8, 2010
See http://bankrupt.com/misc/txwb10-31178.pdf
In Re Gorian and Associates, Inc.
Bankr. C.D. Calif. Case No. 10-16943
Chapter 11 Petition Filed June 9, 2010
See http://bankrupt.com/misc/cacb10-16943.pdf
In Re Guillermo Luis Calixtro
dba Hispanos Unidos Realty
fdba Specialty Loans
fdba Ifa En Tus Manos
aka Luis Calixtro
aka Guillermo Calixtro
fdba Hispanos Unidos
Tina Calixtro
aka Tina Calexico
Bankr. C.D. Calif. Case No. 10-33389
Chapter 11 Petition Filed June 9, 2010
Filed As Pro Se
In Re Old Skokie/Goldstein Family Limited Partnership
Bankr. N.D. Ill. Case No. 10-26112
Chapter 11 Petition Filed June 9, 2010
See http://bankrupt.com/misc/ilnb10-26112.pdf
In Re J. Pendleton Jones
Bankr. D. Md. Case No. 10-22933
Chapter 11 Petition Filed June 9, 2010
Filed As Pro Se
In Re Julia R. Dvorkin
Bankr. D. Mass. Case No. 10-16323
Chapter 11 Petition Filed June 9, 2010
See http://bankrupt.com/misc/mab10-16323.pdf
In Re Active Hair, The Shapers, Inc.
Bankr. D. N.J. Case No. 10-27666
Chapter 11 Petition Filed June 9, 2010
See http://bankrupt.com/misc/njb10-27666.pdf
In Re Flat 117 Inc.
Bankr. E.D. N.Y. Case No. 10-45421
Chapter 11 Petition Filed June 9, 2010
Filed As Pro Se
In Re 1950 Wyoming Avenue Associates, Inc.
Bankr. M.D. Pa. Case No. 10-04788
Chapter 11 Petition Filed June 9, 2010
See http://bankrupt.com/misc/pamb10-04788.pdf
In Re Ferdinand Velez-Figueroa
Bankr. D. Puerto Rico Case No. 10-05081
Chapter 11 Petition Filed June 9, 2010
See http://bankrupt.com/misc/prb10-05081.pdf
In Re Walker Rehabilitation Center Inc.
fdba Consult America Inc
dba Consult America of Carbon Hill
Bankr. N.D. Ala. Case No. 10-71335
Chapter 11 Petition Filed June 10, 2010
See http://bankrupt.com/misc/alnb10-71335p.pdf
See http://bankrupt.com/misc/alnb10-71335c.pdf
In Re Freds Glass & Mirror, Inc.
aka Fred's Glass & Mirror, Inc.
Bankr. C.D. Calif. Case No. 10-27909
Chapter 11 Petition Filed June 10, 2010
See http://bankrupt.com/misc/cacb10-27909.pdf
In Re Pro D International, Inc.
dba ProDesign International
dba ProDesign
dba Grund
Bankr. C.D. Calif. Case No. 10-12920
Chapter 11 Petition Filed June 10, 2010
See http://bankrupt.com/misc/cacb10-12920.pdf
In Re MICROspecialties, Inc.
Bankr. D. Conn. Case No. 10-31739
Chapter 11 Petition Filed June 10, 2010
See http://bankrupt.com/misc/ctb10-31739.pdf
In Re Robert Valentine
Teresa Valentine
Bankr. D. D.C. Case No. 10-00566
Chapter 11 Petition Filed June 10, 2010
Filed As Pro Se
In Re Mohler Properties, Inc.
Bankr. M.D. Fla. Case No. 10-13918
Chapter 11 Petition Filed June 10, 2010
Filed As Pro Se
In Re Tramonett Enterprises, Inc.
dba Terrace Hill Golf Club
Bankr. M.D. Fla. Case No. 10-13906
Chapter 11 Petition Filed June 10, 2010
See http://bankrupt.com/misc/flmb10-13906.pdf
In Re Kent Lowell Ross
dba Denihan Plaza Apartments
Bankr. N.D. Ind. Case No. 10-12595
Chapter 11 Petition Filed June 10, 2010
See http://bankrupt.com/misc/innb10-12595.pdf
In Re Riverside Theatre Works, Inc.
Bankr. D. Mass. Case No. 10-16339
Chapter 11 Petition Filed June 10, 2010
See http://bankrupt.com/misc/mab10-16339.pdf
In Re Henrica's Restaurant, Inc.
Bankr. E.D. N.Y. Case No. 10-45445
Chapter 11 Petition Filed June 10, 2010
See http://bankrupt.com/misc/nyeb10-45445.pdf
In Re PMR Tech, Inc.
Bankr. S.D. N.Y. Case No. 10-36714
Chapter 11 Petition Filed June 10, 2010
See http://bankrupt.com/misc/nysb10-36714.pdf
In Re Bulldog Painting and Contracting, Inc.
Bankr. W.D. Pa. Case No. 10-24229
Chapter 11 Petition Filed June 10, 2010
See http://bankrupt.com/misc/pawb10-24229p.pdf
See http://bankrupt.com/misc/pawb10-24229c.pdf
In Re VenMor Tipton Partnership
Bankr. W.D. Pa. Case No. 10-70686
Chapter 11 Petition Filed June 10, 2010
See http://bankrupt.com/misc/pawb10-70686.pdf
In Re Janis W. Mims
Bankr. M.D. Ala. Case No. 10-31574
Chapter 11 Petition Filed June 11, 2010
See http://bankrupt.com/misc/alnb10-31574.pdf
In Re A And Wiltz Autobody (Partnership)
dba Responsible Partner Jesus Raymond Acuna
Bankr. N.D. Calif. Case No. 10-56080
Chapter 11 Petition Filed June 11, 2010
See http://bankrupt.com/misc/canb10-56080.pdf
In Re Thomas L. Lackman
Bankr. S.D. Calif. Case No. 10-10177
Chapter 11 Petition Filed June 11, 2010
Filed As Pro Se
In Re Robert J. Ferrigno
Bankr. D. Conn. Case No. 10-31748
Chapter 11 Petition Filed June 11, 2010
See http://bankrupt.com/misc/ctb10-31748.pdf
In Re 95 Riberia, LLC
Bankr. M.D. Fla. Case No. 10-05091
Chapter 11 Petition Filed June 11, 2010
See http://bankrupt.com/misc/flmb10-05091.pdf
In Re D. Maxwell Company, Inc.
dba Concrete Systems
Bankr. M.D. Fla. Case No. 10-14117
Chapter 11 Petition Filed June 11, 2010
See http://bankrupt.com/misc/flmb10-14117.pdf
In Re ID International of California, LLC
Bankr. S.D. Fla. Case No. 10-26514
Chapter 11 Petition Filed June 11, 2010
See http://bankrupt.com/misc/flsb10-26514p.pdf
See http://bankrupt.com/misc/flsb10-26514c.pdf
In Re ID Interactive of Michigan, LLC
Bankr. S.D. Fla. Case No. 10-26520
Chapter 11 Petition Filed June 11, 2010
See http://bankrupt.com/misc/flsb10-26520.pdf
In Re ID Interactive of New Mexico, LLC
Bankr. S.D. Fla. Case No. 10-26530
Chapter 11 Petition Filed June 11, 2010
See http://bankrupt.com/misc/flsb10-26530.pdf
In Re ID Interactive Licensing, Ltd.
Bankr. S.D. Fla. Case No. 10-26540
Chapter 11 Petition Filed June 11, 2010
See http://bankrupt.com/misc/flsb10-26540.pdf
In Re ID Interactive International, LLC
Bankr. S.D. Fla. Case No. 10-26545
Chapter 11 Petition Filed June 11, 2010
See http://bankrupt.com/misc/flsb10-26545.pdf
In Re ID Interactive Technologies, SRL
Bankr. S.D. Fla. Case No. 10-26555
Chapter 11 Petition Filed June 11, 2010
See http://bankrupt.com/misc/flsb10-26555.pdf
In Re ID Interactive Argentina, SRL
Bankr. S.D. Fla. Case No. 10-26557
Chapter 11 Petition Filed June 11, 2010
See http://bankrupt.com/misc/flsb10-26557.pdf
In Re Rowan Construction-PSL, Inc.
Bankr. S.D. Fla. Case No. 10-26481
Chapter 11 Petition Filed June 11, 2010
See http://bankrupt.com/misc/flsb10-26481.pdf
In Re D & M Realty, LLC
Bankr. D. Md. Case No. 10-23222
Chapter 11 Petition Filed June 11, 2010
See http://bankrupt.com/misc/mdb10-23222.pdf
In Re Robert's Plumbing & Heating, LLC
Bankr. D. Md. Case No. 10-23221
Chapter 11 Petition Filed June 11, 2010
See http://bankrupt.com/misc/mdb10-23221p.pdf
In Re The Pink Adobe, LLC
fdba DGCG Properpties, LLC
fdba DGCG, LLC
Bankr. D. N.M. Case No. 10-12960
Chapter 11 Petition Filed June 11, 2010
See http://bankrupt.com/misc/nmb10-12960.pdf
In Re Children's Speech & Language Thearapy Center, Inc.
Bankr. E.D. Va. Case No. 10-14914
Chapter 11 Petition Filed June 11, 2010
See http://bankrupt.com/misc/vaeb10-14914.pdf
In Re M & L Markets, Inc.
Bankr. C.D. Calif. Case No. 10-34022
Chapter 11 Petition Filed June 13, 2010
See http://bankrupt.com/misc/cacb10-34022.pdf
In Re Commpartners Holding Corporation
Bankr. D. Nev. Case No. 10-20932
Chapter 11 Petition Filed June 13, 2010
See http://bankrupt.com/misc/nvb10-20932.pdf
*********
Monday's edition of the TCR delivers a list of indicative prices
for bond issues that reportedly trade well below par. Prices are
obtained by TCR editors from a variety of outside sources during
the prior week we think are reliable. Those sources may not,
however, be complete or accurate. The Monday Bond Pricing table
is compiled on the Friday prior to publication. Prices reported
are not intended to reflect actual trades. Prices for actual
trades are probably different. Our objective is to share
information, not make markets in publicly traded securities.
Nothing in the TCR constitutes an offer or solicitation to buy or
sell any security of any kind. It is likely that some entity
affiliated with a TCR editor holds some position in the issuers"
public debt and equity securities about which we report.
Each Tuesday edition of the TCR contains a list of companies with
insolvent balance sheets whose shares trade higher than $3 per
share in public markets. At first glance, this list may look like
the definitive compilation of stocks that are ideal to sell short.
Don't be fooled. Assets, for example, reported at historical cost
net of depreciation may understate the true value of a firm's
assets. A company may establish reserves on its balance sheet for
liabilities that may never materialize. The prices at which
equity securities trade in public market are determined by more
than a balance sheet solvency test.
A list of Meetings, Conferences and Seminars appears in each
Wednesday's edition of the TCR. Submissions about insolvency-
related conferences are encouraged. Send announcements to
conferences@bankrupt.com/
On Thursdays, the TCR delivers a list of recently filed
Chapter 11 cases involving less than $1,000,000 in assets and
liabilities delivered to nation's bankruptcy courts. The list
includes links to freely downloadable images of these small-dollar
petitions in Acrobat PDF format.
Each Friday's edition of the TCR includes a review about a book of
interest to troubled company professionals. All titles are
available at your local bookstore or through Amazon.com. Go to
http://www.bankrupt.com/books/to order any title today.
Monthly Operating Reports are summarized in every Saturday edition
of the TCR.
The Sunday TCR delivers securitization rating news from the week
then-ending.
For copies of court documents filed in the District of Delaware,
please contact Vito at Parcels, Inc., at 302-658-9911. For
bankruptcy documents filed in cases pending outside the District
of Delaware, contact Ken Troubh at Nationwide Research &
Consulting at 207/791-2852.
*********
S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter is a daily newsletter co-published
by Bankruptcy Creditors" Service, Inc., Fairless Hills,
Pennsylvania, USA, and Beard Group, Inc., Frederick, Maryland,
USA. Marites Claro, Joy Agravante, Rousel Elaine Tumanda, Howard
C. Tolentino, Joseph Medel C. Martirez, Denise Marie Varquez,
Philline Reluya, Ronald C. Sy, Joel Anthony G. Lopez, Cecil R.
Villacampa, Sheryl Joy P. Olano, Carlo Fernandez, Christopher G.
Patalinghug, and Peter A. Chapman, Editors.
Copyright 2010. All rights reserved. ISSN: 1520-9474.
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 ***