/raid1/www/Hosts/bankrupt/TCR_Public/100705.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
Monday, July 5, 2010, Vol. 14, No. 184
Headlines
121 GRAPEVINE: Voluntary Chapter 11 Case Summary
401 PROPERTIES: Section 341(a) Meeting Scheduled for July 27
A & A DAIRY: Case Summary & 16 Largest Unsecured Creditors
ABITIBIBOWATER INC: Fee Auditor Submits 3rd Interim Report
ADRIANA MENDOZA: Voluntary Chapter 11 Case Summary
ADVANTA CORP: May Implement Postpetition Employees Severance Plan
ALEXANDER TOOMY: Case Summary & 20 Largest Unsecured Creditors
ALGENON ASHFORD: Voluntary Chapter 11 Case Summary
ALLSCRIPTS-MISYS HEALTHCARE: Moody's Puts Ba2 Corp. Family Rating
ALLSCRIPTS-MISYS HEALTHCARE: S&P Puts 'BB' Corporate Credit Rating
AMERICAN HOMEPATIENT: Approves Reincorporation to Nevada
ANCHOR BANCORP: McGladrey & Pullen Raises Going Concern Doubt
ANDREW MARQUEZ: Case Summary & 17 Largest Unsecured Creditors
ARLEENE ESTOESTA: Case Summary & 5 Largest Unsecured Creditors
ARROW AIR: Files for Bankruptcy Protection for Second Time
ARVIN STEPHENS: Case Summary & 17 Largest Unsecured Creditors
ASPEN LEGACY: Section 341(a) Meeting Scheduled for August 2
ASSET MANAGEMENT: Case Summary & 20 Largest Unsecured Creditors
AWTREY PROPERTIES: Voluntary Chapter 11 Case Summary
AMADEUS TRUST: Chapter 11 Reorganization Case Dismissed
ARAMARK CORP: Bank Debt Trades at 4% Off in Secondary Market
ARVIN STEPHENS: Case Summary & 17 Largest Unsecured Creditors
ARVINMERITOR INC: Files 2009 Report on Hourly Employees Plan
ARVINMERITOR INC: Files 2009 Annual Report on Savings Plan
ASPEN LEGACY: Taps Appel & Lucas as Bankruptcy Counsel
ASSET MANAGEMENT: Case Summary & 20 Largest Unsecured Creditors
ATRIUM COS: Selects Kevin O'Meara as New Chief Executive Officer
AVAYA INC: Bank Debt Trades at 15% Off in Secondary Market
B. C. BUNDT: Voluntary Chapter 11 Case Summary
BAINBRIDGE SHOPPING: U.S. Trustee Unable to Form Creditors Panel
BAY OAKS: Case Summary & 5 Largest Unsecured Creditors
BEAM MANAGEMENT: Taps Messana Stern as General Bankruptcy Counsel
BEAM MANAGEMENT: Has Until September 17 to File Chapter 11 Plan
BEAM MANAGEMENT: Files Schedules of Assets and Liabilities
BEAZER HOMES: Files 2009 Annual Report on 401(k) Plan
BLOCKBUSTER INC: Meyer, Fernandes & 5 Others Voted to Board
BLOCKBUSTER INC: Inks Settlement with Stockholder Greg Meyer
BRIAN GROSCH: Case Summary & 20 Largest Unsecured Creditors
BUCYRUS COMMUNITY: Can Incur DIP Loans from Stearns Healthcare
BURLINGTON COAT: Fitch Affirms Issuer Default Rating at 'B-'
CAPITAL AUTOMOTIVE: S&P Alters Outlook to Stable as Sales Improve
CAPITOL PROPERTIES: Case Summary & Largest Unsecured Creditor
CAPTAIN VAN DYKE: Wants to Hire Stichter Riedel as Bankr. Counsel
CAPRI I, LLC: Case Summary & 20 Largest Unsecured Creditors
CAROL KARLOVICH: Section 341(a) Meeting Scheduled for July 27
CELSO AVARICIO: Case Summary & 20 Largest Unsecured Creditors
CENTER CUT: Moody's Affirms 'Caa1', Hikes Outlook to Stable
CHARTER COMMS: Bank Debt Trades at 8% Off in Secondary Market
CHELSEA HEIGHTS: Intervest Wants Chapter 11 Case Dismissed
CHEMTURA CORP: Seeks to Sell Two Additives Units to Sonneborn
CHENIERE ENERGY: Changes Corporate Presentation
CHENIERE ENERGY: Marketing Unit Enters Agreement with CEI
CHIRON PROPERTIES: Voluntary Chapter 11 Case Summary
CINEMARK USA: S&P Assigns 'BB-' Rating on Extended Term Loan B
CLAIRE'S STORES: Bank Debt Trades at 17% Off in Secondary Market
CLEAR CHANNEL: Bank Debt Trades at 23% Off in Secondary Market
CMP SUSQUEHANNA: Bank Debt Trades at 15% Off in Secondary Market
CNO FINANCIAL: Announces Financial Settlement of Regulatory Matter
COLETO CREEK: Bank Debt Trades at 11% Off in Secondary Market
COMMUNITY HEALTH: Bank Debt Trades at 7% Off in Secondary Market
CORD BLOOD: CEO Schissler Sold 25.5 Million Shares
CORUS BANKSHARES: Files Schedules of Assets and Liabilities
C.R. PEELE: Case Summary & 20 Largest Unsecured Creditors
DBSI INVESTMENTS: Involuntary Chapter 11 Case Summary
DEAN FOODS: S&P Assigns 'BB' Rating on $1.275 Bil. Facility
DEAN FOODS: Bank Debt Trades at 7% Off in Secondary Market
DELTA AIR: Drops Plan to Swap Airport Slots with USAir
DICON TECHNOLOGIES: Court Stays Order Appointing Ch. 11 Trustee
DR HORTON: Fitch Affirms Issuer Default Rating at 'BB'
DYNEGY HOLDINGS: Moody's Downgrades Corp. Family Rating to 'B3'
EDIETS.COM INC: Gets Notice on NASDAQ's Minimum Bid Price Rule
EDISON MISSION: Fitch Affirms Issuer Default Ratings at 'B'
EIF CALYPSO: S&P Downgrades Rating on $800 Mil. Notes to 'B+'
ELIZABETH CAMPISI: Voluntary Chapter 11 Case Summary
EMMIS COMMUNICATIONS: Files Amended Annual Report on Form 10-K
ERIC MILLER: Case Summary & 9 Largest Unsecured Creditors
ESCOM LLC: Sedo to Sell Sex.com Web Site at Auction
FAIRFAX CROSSING: Case Summary & 6 Largest Unsecured Creditors
FAIRFAX CROSSING II: Case Summary & 3 Largest Unsecured Creditors
FAIRPOINT COMMS: Bank Debt Trades at 31% Off in Secondary Market
FAIRPOINT COMMS: Reaches Settlement with Verizon New England
FAIRPOINT COMMS: Files Omnibus Motions to Estimate Claims
FAIRPOINT COMMS: Wants USAC Claims Estimated at $0
FEDERAL-MOGUL: Opens Asia-Pacific Headquarters in Shanghai
FIDELITY NATIONAL: S&P Downgrades Corporate Credit Rating to 'BB'
FIRST FOLIAGE: U.S. Trustee Appoints 5 Members to Creditors Panel
FIRST FOLIAGE: Gets Interim Nod to Tap Infante Zumpano
FLORASTENE HOLDEN: Case Summary & 16 Largest Unsecured Creditors
FLYING J: Pilot to Sell 26 Locations to Secure FTC Clearance
FLYING J: Montana Agrees to Cut Environmental Claims to $2.7MM
FORD MOTOR: Files 2009 Annual Report on Salaried Employees Plan
FORD MOTOR: Files 2009 Annual Report on Hourly Employees Plan
FORD MOTOR: 11 Directors Acquire Stock Units
FREMONT GENERAL: Court Approves Settlement Agreement With FIA
FREESCALE SEMICON: Bank Debt Trades at 12% Off in Secondary Market
FURNITURE WORLD: Case Summary & 20 Largest Unsecured Creditors
GATEHOUSE MEDIA: Bank Debt Trades at 60% Off in Secondary Market
GENERAL GROWTH: Claims Objection Deadline Extended to September 8
GENERAL GROWTH: Wins Approval of Safeco Surety Facility
GENERAL GROWTH: Deloitte Work to Include Reissuance Services
GENERAL MOTORS: In Talks for $5-Bil. Financing as IPO Looms
GHULAM MOHAMMADI: Case Summary & 14 Largest Unsecured Creditors
GLENN SWANSON: Case Summary & 7 Largest Unsecured Creditors
GPX INTERNATIONAL: Plan Confirmation Hearing Set for July 21
GR HOSPITALITY: Voluntary Chapter 11 Case Summary
GRAY TELEVISION: Files 2009 Annual Report for Accumulation Plan
GRAY TELEVISION: Director Richard Lee Boger Sells 3,000 Shares
GRAY TELEVISION: Delays Exchange Offer for 10-1/2% Notes
GRAY TELEVISION: Eleven Directors Elected to Board
GREEKTOWN HOLDINGS: Obtains Gaming Board Nod, Exits Bankruptcy
GREEKTOWN HOLDINGS: Superholdings Sells $385-Mil. in Notes
GREEKTOWN HOLDINGS: Ferguson Considering Offer to Join Board
GREENWOOD RACING: Moody's Affirms 'B2' Corporate Family Rating
GULF FLEET: Thoma-Sea Joining Committee as Ex Officio Member
HAWKER BEECHCRAFT: Bank Debt Trades at 20% Off in Secondary Market
HAWSHON RILEY: Voluntary Chapter 11 Case Summary
HCA INC: Bank Debt Trades at 6% Off in Secondary Market
HPT DEVELOPMENT: Promises to Pay Unsecureds from Excess Cash Flow
HUNTINGTON BANCSHARES: S&P Gives Pos. Outlook; Keeps BB+/B Rating
ICTS INTERNATIONAL: Mayer Hoffman Raises Going Concern Doubt
INTELSAT LTD: Bank Debt Trades at 6% Off in Secondary Market
ISLE OF CAPRI: Moody's Reviews 'B2' Corporate Family Rating
INDEPENDENCE TAX: Trien Rosenberg Raises Going Concern Doubt
INNATECH LLC: Engineered Plastic to Close Factory for Good
IRVINE SENSORS: Issues 326,000 Shares of Stock to 48 Investors
JAPAN AIRLINES: Turnaround Adviser Hires 4 Ex-Merrill Bankers
JAPAN AIRLINES: May Sever Ties with IBM Japan to Cut Costs
JAPAN AIRLINES: Submits Antitrust Immunity Application
JIM-MAR CONSULTANTS: Case Summary & 20 Largest Unsecured Creditors
K-V PHARMACEUTICAL: KMPG LLP Resigns as Company's Accountant
LANDMARK ATLANTIC: Case Summary & 6 Largest Unsecured Creditors
LAS VEGAS SANDS: Bank Debt Trades at 12% Off in Secondary Market
LATHAM INTERNATIONAL: Court Terminates Reorganization Case
LEHMAN BROTHERS: MSBI Objects to Chapter 11 Plan
LEHMAN BROTHERS: SunCal Appeals Order on Fenway Deal
LEHMAN BROTHERS: LBI Trustee Reaches Deals with Zurcher, Societe
LEHMAN BROTHERS: Deal Ending Engagement with Cherokee Advisers
LEHMAN BROTHERS: PWC to Expedite LBIE Claims Determination
LIONS GATE: Icahn Hikes Stake to 34%, Triggers Change of Control
LLC GREENS: Case Summary & 4 Largest Unsecured Creditors
LOVEJOY ROAD: Case Summary & 8 Largest Unsecured Creditors
MACDERMID INC: S&P Hikes Outlook to 'Stable', Affirms 'B-' Rating
MARHABA PARTNERS: Plan Outline Hearing Scheduled for July 19
MARKWEST ENERGY: Fitch Assigns 'BB+' Rating on $700 Mil. Loan
MARY LANDSEE: Case Summary & 16 Largest Unsecured Creditors
MASSEY ENERGY: S&P Affirms 'BB-' Corporate Credit Rating
MCC BUSINESS: Voluntary Chapter 11 Case Summary
MICHAELS STORES: Bank Debt Trades at 8% Off in Secondary Market
MIDWEST AG: Voluntary Chapter 11 Case Summary
MIDWEST BANC: Roberto Herencia Inks Consulting Agreement
MOLECULAR INSIGHT: Receives Fourth Extension of Waiver Agreement
MOUNT VERNON: Claims Filing Deadline Set for August 13
MURRAY SEABOLT: Voluntary Chapter 11 Case Summary
NATIONAL ENVELOPE: Cenveo Protests Sale Deal With Gores Group
NEENAH ENTERPRISES: Secures Exit Financing
NEENAH ENTERPRISES: Discloses New Executive Management Team
NEFF CORP: Obtains Final OK of $175 Million in DIP Financing
NEW YORK CHOCOLATE: DoveBid Acquires Assets for $2.5 Million
NEWLOOK INDUSTRIES: Will Delay Financial Statements Filing
NORTEL NETWORKS: Seeks Canada OK for Claims Resolution Process
NORTEL NETWORKS: Ontario Court Rejects UK Regulator's Appeal
NORTEL NETWORKS: Calgary Employees Seeks to Pursue Claims
NOVELIS INC: Moody's Upgrades Corporate Family Rating to 'Ba3'
OM SHIVAI: Case Summary & 19 Largest Unsecured Creditors
OPTI CANADA: Six Nominees Elected to Board of Directors
ORITE HOTELS: Case Summary & 20 Largest Unsecured Creditors
OSCIENT PHARMACEUTICALS: Joint Plan of Reorganization Confirmed
PALM BEACH: Moody's Downgrades Rating on $45.5 Mil. Bonds to 'Ba1'
PARLUX FRAGRANCES: Completes Financing Deal With GE Capital
PAUL REINIGER: Case Summary & 5 Largest Unsecured Creditors
PHILADELPHIA NEWSPAPERS: Two Funds Want Reorganization Plan Halted
PIONEER NATURAL: Fitch Affirms Issuer Default Rating at 'BB+'
PPLUS TRUST: S&P Puts 'BB-' Ratings on CreditWatch Developing
PRODUCTION COMPONENTS: Voluntary Chapter 11 Case Summary
PROPEX INC: Total Petrochemicals Settles Trustee's $8.6 Mil. Suit
PROTOSTAR LTD: Lenders Object to Lowenstein, Greenberg Fees
QUARRY POND: Plan Confirmation Hearing Scheduled for July 7
RAISSI REAL ESTATE: Case Summary & 3 Largest Unsecured Creditors
RCLC INC: Ends Asset Sale Agreement With Hawthorne TTN
REAL MEX: Gets Holders' Consent to Amend Indenture of Senior Notes
REALOGY CORP: Bank Debt Trades at 16% Off in Secondary Market
RENEW ENERGY: Judge Approves Plan for Distributing Sale Proceeds
RICHARD ABRUSCATO: Voluntary Chapter 11 Case Summary
RICHARD FUSCONE: Court Denies Motion to Incur DIP Financing
RITE AID: Bank Debt Trades at 14% Off in Secondary Market
RJ YORK: Premier Bank Offers $5 Million for Clayton Property
ROBERT BUECHEL: Case Summary & 20 Largest Unsecured Creditors
SANFORD JAY HOROWITZ: To Fully Pay Claims from Asset Sales
SK HAND: Case Summary & 20 Largest Unsecured Creditors
SOFTLAYER TECHNOLOGIES: Moody's Assigns 'B2' Corp. Family Rating
SOUTHEAST TELEPHONE: Lightyear Network Solutions to Acquire Firm
SPECIALTY PRODUCTS: Committee of Asbestos Claimants Formed
SPECIALTY PRODUCTS: Has Until July 15 to File Schedules
SPRINGBOK SERVICES: Stipulation on MetaBank Pact Rejection OK'd
SUGARTREE PROPERTIES: Case Summary & 10 Largest Unsec Creditors
SUN HEALTHCARE: Bank Debt Trades at 4% Off in Secondary Market
SUNSET 8: Case Summary & Largest Unsecured Creditor
SWIFT TRANSPORT: Bank Debt Trades at 8% Off in Secondary Market
TC GLOBAL: March 2010 Balance Sheet Upside-Down By $4.1 Million
TELETOUCH COMMUNICATIONS: Officers Acquire Stock Options
TEMPLE MESSIANIQUE: Case Summary & 17 Largest Unsecured Creditors
TERRY DEFOOR: Voluntary Chapter 11 Case Summary
TIME WARNER: Bank Debt Trades at 4% Off in Secondary Market
TRENTON LAND: Case Summary & 7 Largest Unsecured Creditors
TRI-CITY WOOD: Case Summary & 20 Largest Unsecured Creditors
TRIAT INDUSTRIES: Voluntary Chapter 11 Case Summary
TRIBUNE CO: Bank Debt Trades at 40% Off in Secondary Market
TRIBUNE CO: Bankruptcy Examiner Gets More Time for Probe of Buyout
TRONOX INC: Kerr-McGee Seeks Order on Spinoff Contract
TRUVO USA: Case Summary & 3 Largest Unsecured Creditors
TUAN SAM: Voluntary Chapter 11 Case Summary
UNITED AIR LINES: Bank Debt Trades at 13% Off in Secondary Market
US AIRWAYS: Drops Plan to Swap Airport Slots with Delta Air
US CONCRETE: Texas Tax Agency Objects to Chapter 11 Plan
US ENERGY: Files First Amended Chapter 11 Plan of Reorganization
VENETIAN MACAU: Bank Debt Trades at 3% Off in Secondary Market
VERAZ NETWORKS: Receives NASDAQ Listing Compliance Notice
VINE STREET: Case Summary & 11 Largest Unsecured Creditors
VISTEON CORP: Files Fourth Amended Joint Plan of Reorganization
VOICESERVE INC: Michael Studer Raises Going Concern Doubt
WAVELAND PROFESSIONAL: Voluntary Chapter 11 Case Summary
WESTMORELAND COAL: Files 2009 Annual Report on Savings Plan
WESTMORELAND COAL: Officers Acquire Restricted Stock Units
WHITE MOUNTAINS: Fitch Affirms All Issuer Default Ratings
WOODCREST CLUB: Plan Confirmation Hearing Set for July 27
XERIUM TECHNOLOGIES: Regains Compliance with NYSE Listing Standard
XL GROUP: Fitch Affirms Insurer Financial Strength Rating
* Consumer Bankruptcy Filings up 14% in First Half of 2010
* Alec Ostrow Joins Becker Glynn as Partner in Bankruptcy Practice
* BOND PRICING -- For Week From June 28 to July 2, 2010
********
121 GRAPEVINE: Voluntary Chapter 11 Case Summary
------------------------------------------------
Debtor: 121 Grapevine Crossing, LP
fka Grapevine Mills Crossing, LP
8235 Douglas Avenue, Suite 950
Dallas, TX 75225
Bankruptcy Case No.: 10-34523
Chapter 11 Petition Date: June 30, 2010
Court: United States Bankruptcy Court
Northern District of Texas (Dallas)
Judge: Barbara J. Houser
Debtor's Counsel: John P. Lewis, Jr., Esq.
1412 Main St., Suite 210
Dallas, TX 75202
Tel: (214) 742-5925
Fax: (214) 742-5928
E-mail: jplewisjr@mindspring.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $10,000,001 to $50,000,000
The Debtor did not file a list of its largest unsecured creditors
together with its petition.
The petition was signed by Scott D. Remphrey, manager of general
partner GP Grapevine Mills Crossing, LLC.
401 PROPERTIES: Section 341(a) Meeting Scheduled for July 27
------------------------------------------------------------
The U.S. Trustee for Region 11 will convene a meeting of 401
Properties Limited Partnership's creditors on July 27, 2010, at
1:30 p.m. The meeting will be held at 219 South Dearborn, Office
of the U.S. Trustee, 8th Floor, Room 802, Chicago, IL 60604.
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.
Chicago, Illinois-based 401 Properties Limited Partnership filed
for Chapter 11 bankruptcy protection on June 23, 2010 (Bankr. N.D.
Ill. Case No. 10-28114). Louis D. Bernstein, Esq., at Bernstein
Law Firm, LLC, assists the Company in its restructuring effort.
The Company listed $10,000,001 to $50,000,000 in assets and
$1,000,001 to $10,000,000 in liabilities.
A & A DAIRY: Case Summary & 16 Largest Unsecured Creditors
----------------------------------------------------------
Debtor: A & A Dairy
3550 Tarzyn Road
Fallon, NV 89406
Bankruptcy Case No.: 10-52539
Chapter 11 Petition Date: June 29, 2010
Court: United States Bankruptcy Court
District of Nevada (Reno)
Judge: Gregg W. Zive
Debtor's Counsel: Kevin A. Darby, Esq.
Darby Law Practice, Ltd.
4777 Caughlin Pkwy
Reno, NV 89519
Tel: (775) 322-1237
Fax: (775) 996-7290
E-mail: kevin@darbylawpractice.com
Scheduled Assets: $7,242,500
Scheduled Debts: $5,694,114
A list of the Company's 16 largest unsecured creditors filed
together with the petition is available for free at
http://bankrupt.com/misc/nvb10-52539.pdf
The petition was signed by Daniel Alegre, general partner.
ABITIBIBOWATER INC: Fee Auditor Submits 3rd Interim Report
----------------------------------------------------------
In separate reports filed with the Court, Direct Fee Review LLC,
in its capacity as fee auditor in AbitibiBowater Inc.'s Chapter 11
cases, recommended the approval of fees and the reimbursement of
expenses of these professionals for these fee periods:
Professional Fee Period Fees Expenses
------------ ----------- ---------- --------
Blackstone Advisory 10/01/09 to $1,500,000 65,313
Services, L.P. 01/31/10
Huron Consulting LLC 09/01/09 to 1,222,388 $460,797
12/31/09
Lazard Freres & Co. LLC 11/01/09 to 600,000 23,371
01/31/10
Deloitte Tax LLP 11/01/09 to 582,078 13,082
01/31/10
Bayard, P.A. 11/01/09 to 76,231 6,475
01/31/10
PricewaterhouseCoopers 07/01/09 to C$1,274,188 C$294,958
LLP (Canada) 10/31/09
Mercer (Canada) Limited 10/01/09 to C$1,206,758 C$42,495
10/31/09
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).
ADRIANA MENDOZA: Voluntary Chapter 11 Case Summary
--------------------------------------------------
Debtor: Adriana Mendoza
24081 Roma Drive
Mission Viejo, CA 92691
Tel: (949) 756-9050
Bankruptcy Case No.: 10-18888
Chapter 11 Petition Date: June 30, 2010
Court: U.S. Bankruptcy Court
Central District of California (Santa Ana)
Debtor's Counsel: Robert Sabahat, Esq.
Madison Harbor ALC
17702 Mitchell North, Suite 100
Irvine, CA 92614
Tel: (949) 756-9050
Fax: (949) 756-9060
E-mail: rsabahat@madisonharbor.com
Estimated Assets: $0 to $50,000
Estimated Debts: $10,000,001 to $50,000,000
The Debtor did not file a list of creditors together with its
petition.
The petition was signed by the Debtor.
Debtor-affiliate filing separate Chapter 11 petition:
Entity Case No. Petition Date
------ -------- -------------
Adriana Elderly Care Homes, Inc. 09-14477 05/13/09
ADVANTA CORP: May Implement Postpetition Employees Severance Plan
-----------------------------------------------------------------
In a regulatory filing Friday, Advanta Corp. disclosed that on
June 15, 2010, the Bankruptcy Court entered an order authorizing
the Company to implement the Post-Petition Advanta Employees'
Severance Plan. The period to appeal the order expired on
June 29, 2010, without any appeals being filed, thereby making the
order final. The Post-Petition Severance Plan is effective as of
June 15, 2010, and allows the Debtors to pay severance payments
upon the termination of the employment of certain Eligible
Employees (as defined in the Post-Petition Severance Plan) who are
employees of a Debtor on or after the effective date of the Post-
Petition Severance Plan. In order for an Eligible Employee to
receive payments under the Post-Petition Severance Plan, several
conditions must be met as set forth in the Post-Petition Severance
Plan. The Post-Petition Severance Plan supersedes any Eligible
Employee's severance entitlements under the Advanta Employees'
Severance Pay Plan, the Advanta Corp. Employee Change of Control
Severance Plan and the Advanta Senior Management Change of Control
Plan (collectively, the "Superseded Plans").
Of the Company's three remaining Named Executive Officers, only
the Company's Chief Financial Officer, Philip Browne, is eligible
to participate in the Post-Petition Severance Plan. The maximum
amount that Mr. Browne could receive pursuant to the Post-Petition
Severance Plan if all conditions are satisfied is $275,743, which
amount is substantially less than Mr. Browne may have been
eligible to receive under the Superseded Plans.
A full-text copy of the Post-Petition Advanta Employees' Severance
Plan is available for free at:
http://researcharchives.com/t/s?65d4
About Advanta Corp.
Advanta Corp. -- http://www.advanta.com/-- has had a 59-year
history of being a leading innovator in the financial services
industry and of providing great value to its stakeholders,
including its senior retail note holders and shareholders, prior
to the recent reversals. It has also been a major civic and
charitable force in the communities in which it is based,
particularly in the Greater Philadelphia area.
In June 2009, the Federal Deposit Insurance Corporation placed
significant restrictions on the activities and operations of
Advanta Bank Corp., a wholly owned subsidiary of the Company, as
the Bank's capital ratios were below required regulatory levels.
On November 8, 2009, Advanta Corp. filed for Chapter 11 (Bankr. D.
Del. Case No. 09-13931). Attorneys at Weil, Gotshal & Manges LLP,
and Richards, Layton & Finger, P.A., serve as bankruptcy counsel.
Alvarez & Marsal serves as financial advisor. The Garden City
Group, Inc., serves as claims agent. The filing did not include
Advanta Bank Corp. The petition says that Advanta Corp.'s assets
totaled $363,000,000 while debts totaled $331,000,000 as of
September 30, 2009.
ALEXANDER TOOMY: Case Summary & 20 Largest Unsecured Creditors
--------------------------------------------------------------
Joint Debtors: Alexander MacMillan Toomy
aka Alex Toomy
aka Alex M. Toomy
Amy Nance Toomy
aka Jacqueline Amy Nance
P.O. Box 670
Ivy, VA 22945
Bankruptcy Case No.: 10-61882
Chapter 11 Petition Date: June 29, 2010
Court: United States Bankruptcy Court
Western District of Virginia (Lynchburg)
Judge: William E. Anderson
Debtor's Counsel: Marshall Moore Slayton, Esq
420 Park Street
Charlottesville, VA 22902-4738
Tel: (434) 979-7900
E-mail: lee.graham@bbrs.net
Scheduled Assets: $6,115,895
Scheduled Debts: $9,513,926
A list of the Debtors' 20 largest unsecured creditors filed
together with the petition is available for free at
http://bankrupt.com/misc/vawb10-61882.pdf
The petition was signed by the Joint Debtors.
ALGENON ASHFORD: Voluntary Chapter 11 Case Summary
--------------------------------------------------
Debtor: Algenon Ashford
15209 Johnstone Lane
Bowie, MD 20721
Bankruptcy Case No.: 10-24877
Chapter 11 Petition Date: June 30, 2010
Court: United States Bankruptcy Court
District of Maryland (Greenbelt)
Judge: Wendelin I. Lipp
Debtor's Counsel: Bennie R. Brooks, Esq.
8201 Corporate Drive, Suite 260
Landover, MD 20785
Tel: (301) 731-4160
E-mail: bbrookslaw@aol.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
The Debtor did not file a list of its largest unsecured creditors
together with its petition.
The petition was signed by Algenon Ashford.
ALLSCRIPTS-MISYS HEALTHCARE: Moody's Puts Ba2 Corp. Family Rating
-----------------------------------------------------------------
Moody's Investors Service assigned a Ba2 corporate family rating
to first time issuer Allscripts-Misys Healthcare Solutions, Inc.
Moody's also assigned Ba2 ratings to Allscripts new senior secured
debt facilities. The new debt will be used to repurchase stock
from Allscripts's largest shareholder, Misys plc as part of a
series of transactions to reduce Misys's ownership interest in
Allscripts and complete a stock-for-stock merger with Eclipsys
Corporation. If the transactions do not close, the ratings will
likely be withdrawn. The ratings outlook is stable.
The Ba2 corporate family rating is driven by Allscripts's market
leading position providing software and services to hospitals and
physicians, its installed base of over 160,000 physicians,
recurring nature of the revenue streams and expected growth as the
industry adopts electronic health records. The rating also
considers the addition of Eclipsys's large market position
providing software systems and services to hospitals, medical
centers and outpatient clinics and the potential synergies from
providing an integrated offering to hospitals and surrounding
area's physician practices. The rating also reflects the moderate
pro forma leverage at closing (approximately 3x which is in line
with a mid Ba rated software company of this size). The ratings
are modestly restrained by the integration risks of the merger,
particularly as Eclipsys is nearly the same size as Allscripts and
uncertainties over evolving healthcare reimbursement policies.
The company is expected to have very good liquidity post the
closing, based on its relatively strong free cash flow generating
capabilities and its undrawn revolver.
Allscripts's and Eclipsys's respective markets remain fragmented
and there is an expectation that Allscripts will resume
acquisitions at some point, although they will likely be
relatively small. Management is expected to reduce leverage
relatively quickly after the merger and given the potential cost
synergies and strategic value of combining the two companies, the
ratings could face upward pressure if the company can successfully
integrate the businesses and derive its planned value from the
combination.
These ratings were assigned:
-- Corporate Family Rating, Ba2
-- Probability of Default Rating, Ba3
-- $570 mm Sr. Secured Term Loan - Ba2 (LGD 3, 35%)
-- $150 mm Sr. Secured Revolver - Ba2 (LGD 3, 35%)
-- Speculative Grade Liquidity Rating, SGL-1
-- Ratings Outlook -- Stable
Allscripts is a leading provider of software for physician
practices and hospitals with LTM revenue as of February 2010 of
approximately $680 million and approximately $1.2 billion pro
forma for the Eclipsys merger. Allscripts is headquartered in
Chicago, IL.
ALLSCRIPTS-MISYS HEALTHCARE: S&P Puts 'BB' Corporate Credit Rating
------------------------------------------------------------------
Standard & Poor's Ratings Services assigned its 'BB' corporate
credit rating to Chicago Ill.-based Allscripts-Misys Healthcare
Solutions Inc. The rating outlook is positive.
At the same time, S&P assigned the company's proposed $720 million
senior secured financing S&P's issue-level rating of 'BBB-' (two
notches higher than the 'BB' corporate credit rating) with a
recovery rating of '1', indicating S&P's expectation of very high
(90% to 100%) recovery for lenders in the event of a payment
default. The proposed financing comprises a $150 million senior
secured revolving credit facility, a $320 million senior secured
term loan A, and a $250 million senior secured term loan B.
S&P expects proceeds from the transaction to be used, in part, to
reduce Misys plc's approximate 55% ownership in Allscripts to
below 10%. Allscripts and Misys have agreed to these series of
transactions:
* Misys will complete a secondary offering of a minimum of
36 million Allscripts shares.
Immediately after the secondary offering, Allscripts will buy back
approximately $460 million of its shares not sold in the secondary
offering and pay a fixed premium of approximately $117 million.
After the closing of the Eclipsys Corp. acquisition, Misys will
have the right to require Allscripts to repurchase an additional
$102 million of Allscripts shares.
The 'BB' corporate credit rating on Allscripts reflects the
company's narrow business profile in a fragmented industry, its
acquisitive growth strategy, and the competitive and still-
evolving nature of the health care IT industry. These factors are
offset by positive operating and credit trends, and good free cash
flow generation which could be used toward debt reduction.
The merger with unrated Eclipsys would expand and moderately
diversify the company's breadth of services, and provide a more
conservative financial position due to the all-stock financing of
the transaction (valued at approximately $1.3 billion). However,
this is Allscripts' largest transaction to date, and management
must demonstrate its ability to successfully integrate operations
and business cultures, as well as build a track record of
maintaining adequate profitability and liquidity.
With last-12-month revenues of about $700 million, Allscripts is a
leading provider of clinical software, connectivity, and
information solutions to health care providers, primarily
physicians. The company's products include electronic health
records, e-Prescribing, integrated solutions for practice
management, and patient care management software. Growth
prospects are good, as S&P expects electronic health record
adoption to accelerate over the next two to three years, fueled by
financial incentives to the physicians by the U.S. government.
Significant recurring revenues, about two-thirds of sales, which
include software-enabled services and maintenance, provide good
revenue visibility. EBITDA margins are in the mid-20% area, and
could be bolstered by scale efficiencies and cost-saving
initiatives.
AMERICAN HOMEPATIENT: Approves Reincorporation to Nevada
--------------------------------------------------------
American HomePatient, Inc., announced Wednesday that at its 2010
Annual Meeting of Stockholders held June 30, 2010, stockholders
re-elected Henry T. Blackstock and W. Wayne Woody as Class 1
directors and approved the reincorporation of the Company from
Delaware to Nevada through a plan and agreement of merger.
According to the Company, the reincorporation became effective
June 30, 2010, and will not result in any change in the Company's
name, headquarters, business, jobs, management, location of
offices or facilities, number of employees, assets, liabilities or
net worth. Also, American HomePatient, Inc.'s common stock will
continue to trade in the over-the-counter market or, on
application by broker-dealers, in the NASD's Electronic Bulletin
Board under the symbol AHOM or AHOM.OB.
The reincorporation was effected by a merger of American
HomePatient, Inc., a Delaware corporation ("AHP Delaware"), AHP
Nevada, a wholly-owned subsidiary of AHP Delaware, and AHP DE
Merger Corp., a wholly owned subsidiary of AHP Nevada, in
accordance with the terms of the plan and agreement of merger
dated as of May 21, 2010.
As reported in the Troubled Company Reporter on April 30, 2010,
the Company has entered into an agreement with its senior debt
holders and its largest stockholder, an investment fund managed by
Highland Capital Management, to complete transactions that are
intended to result in a going-private transaction followed by a
restructuring of the Company's secured debt. The restructuring
agreement contemplates that the Company will seek shareholder
approval to reincorporate in Nevada, and, if approved, the Nevada
entity will commence a tender offer to acquire all outstanding
shares of stock not held by Highland managed accounts for
$0.67 per share. If these transactions are completed, the stock
of American HomePatient would cease to be publicly traded.
If the tender offer is completed, the Company's senior secured
debt will be restructured with a new four-year term.
About American HomePatient
Brentwood, Tenn.-base American HomePatient, Inc. (OTC BB: AHOM) is
one of the nation's largest home health care providers with
operations in 33 states. Its product and service offerings
include respiratory services, infusion therapy, parenteral and
enteral nutrition, and medical equipment for patients in their
home.
As reported in the Troubled Company Reporter on March 8, 2010,
KPMG LLP, in Nashville, Tennessee, expressed substantial doubt
about the Company's ability to continue as a going concern after
auditing the Company's financial statements for the year ended
December 31, 2009. The independent auditors noted that at
December 31, 2009, the Company had a net capital deficiency and
had a net working capital deficiency resulting from $226.4 million
of debt that matured on August 1, 2009.
The Company's balance sheet at March 31, 2010, showed
$242.7 million in assets and $277.4 million in liabilities, for a
shareholders' deficit of $34.7 million.
ANCHOR BANCORP: McGladrey & Pullen Raises Going Concern Doubt
-------------------------------------------------------------
Anchor Bancorp Wisconsin Inc. filed on June 29, 2010, its annual
report on Form 10-K for the year ended March 31, 2010.
McGladrey & Pullen, LLP, in Madison, Wisconsin, expressed
substantial doubt about the Company's ability to continue as a
going concern. The independent auditors noted that at March 31,
2010, all of the subsidiary bank's regulatory capital amounts and
ratios are below the required levels and the bank is considered
"undercapitalized" under the regulatory framework for prompt
corrective action. The subsidiary bank has also suffered
recurring losses from operations. Failure to meet the capital
requirements exposes the Company's to regulatory sanctions that
may include restrictions on operations and growth, mandatory asset
dispositions, and seizure of the subsidiary bank. In addition,
the Company's outstanding balance under the Amended and Restated
Credit Agreement could be declared in default and become due or
payable if financial covenants are not met.
Anchor Bancorp reported a net loss of $177.1 million on
$84.8 million of net interest income (before provision for loan
losses) for the year ended March 31, 2010, compared with a net
loss of $230.8 million on $124.8 million of net interest income
(before provision for loan losses) for the year ended March 31,
2009.
The Company's balance sheet at March 31, 2010, showed
$4.416 billion in assets, $4.386 billion of liabilities, and
$30.1 million of stockholders' equity.
A full-text copy of the annual report is available for free at:
http://researcharchives.com/t/s?65b5
Headquartered in Madison, Wisconsin, Anchor Bancorp Wisconsin Inc.
(NASDAQ: ABCW) is a registered savings and loan holding company
incorporated under the laws of the State of Wisconsin. The
Company is engaged in the savings and loan business through its
wholly owned banking subsidiary, AnchorBank, fsb.
AnchorBank, fsb was organized in 1919 as a Wisconsin chartered
savings institution and converted to a federally chartered savings
institution in July 2000. AnchorBank, fsb is the third largest
depository institution headquartered in the state of Wisconsin and
its largest thrift in terms of assets.
ANDREW MARQUEZ: Case Summary & 17 Largest Unsecured Creditors
-------------------------------------------------------------
Debtor: Andrew C. Marquez
Adelina A. Marquez
163 Harden Parkway, Apartment F
Salinas, CA 93906
Bankruptcy Case No.: 10-56844
Chapter 11 Petition Date: June 30, 2010
Court: U.S. Bankruptcy Court
Northern District of California (San Jose)
Judge: Charles Novack
Debtor's Counsel: Kenneth R. Graham, Esq.
Law Office of Kenneth R. Graham
171 Mayhew Way #208
Pleasant Hill, CA 94523
Tel: (925) 932-0170
E-mail: krg@elaws.com
Estimated Assets: $500,001 to $1,000,000
Estimated Debts: $1,000,001 to $10,000,000
According to the schedules, the Debtors say that assets total
$711,937 while debts total $1,485,822.
A copy of the Debtors' list of 17 largest unsecured
creditors filed together with the petition is available for
free at http://bankrupt.com/misc/canb10-56844.pdf
The petition was signed by the Joint Debtors.
ARLEENE ESTOESTA: Case Summary & 5 Largest Unsecured Creditors
--------------------------------------------------------------
Debtor: Arleene Ann Estoesta
10360 Anderson Road
San Jose, CA 95127
Bankruptcy Case No.: 10-56749
Chapter 11 Petition Date: June 29, 2010
Court: U.S. Bankruptcy Court
Northern District of California (San Jose)
Judge: Charles Novack
Debtor's Counsel: Stanley Phan, Esq.
Phan Law Firm, Inc.
115 East Gish Road #200
San Jose, CA 95112
Tel: (408)441-8886
E-mail: phanlawfirm.bk@gmail.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
A copy of the Debtor's list of 5 largest unsecured creditors filed
together with the petition is available for free at
http://bankrupt.com/misc/canb10-56749.pdf
The petition was signed by the Debtor.
ARROW AIR: Files for Bankruptcy Protection for Second Time
----------------------------------------------------------
Arrow Air, Inc., doing business as Arrow Cargo, returned to
Chapter 11 on June 30, 2010 (Bankr. S.D. Fla. Case No. 10-28831).
The Company listed assets of $10,000,001 to $50,000,000 and debts
of $100,000,001 to $500,000,000.
Arrow Air emerged from Chapter 11 in 2004. This time, it cited
significant operating losses as a result of declining revenues and
skyrocketing fuel prices, according to Law360.
According to The Wall Street Journal, Arrow Air filed for
bankruptcy for the second time one day after canceling its flights
and terminating hundreds of employees. The WSJ relates that the
Company is preparing to shut down its operations entirely unless
it can find a purchaser to rescue it from bankruptcy.
"The debtors intend to implement the orderly wind down of their
scheduled service operations and the liquidation of their assets
in Chapter 11 through the confirmation of a plan," Chief
Restructuring Officer Doug Yakola said in court papers filed
Thursday, "subject to the availability of charter flying and any
potential sale transaction that may arise in Chapter 11."
Arrow Air has been rooted in South Florida for nearly six decades
and operates an extensive freighter schedule between the U.S. and
the Caribbean and South and Central America. The airline served
more than 3,500 customers worldwide, including international and
domestic forwarders, integrated carriers, passenger and cargo
airlines, and the U.S. Department of Defense and the U.S. Postal
Service.
ARVIN STEPHENS: Case Summary & 17 Largest Unsecured Creditors
-------------------------------------------------------------
Joint Debtors: Arvin E. Stephens
fdba Ninnekah Quick Mart, LLC
Karen J. Stephens
P.O Box 7
Ninnekah, OK 73067
Bankruptcy Case No.: 10-14028
Chapter 11 Petition Date: June 30, 2010
Court: United States Bankruptcy Court
Western District of Oklahoma (Oklahoma City)
Judge: T.M. Weaver
Debtor's Counsel: James Brunson, Esq.
AG-LAW, P.C.
500 N. Walker, Suite C-100
Oklahoma City, OK 73102
Tel: (405) 415-1780
Fax: (405) 415-1703
E-mail: Jayfarmlaw@netzero.net
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
A list of the Company's 17 largest unsecured creditors
filed together with the petition is available for free
at http://bankrupt.com/misc/okwb10-14028.pdf
The petition was signed by Arvin E. Stephens and Karen J.
Stephens.
ASPEN LEGACY: Section 341(a) Meeting Scheduled for August 2
-----------------------------------------------------------
The U.S. Trustee for Region 19 will convene a meeting of Aspen
Legacy Holdings, LLC's creditors on August 2, 2010, at 9:30 a.m.
The meeting will be held at U.S. Custom House, 721 19th Street,
Room 104, Denver, CO 80202.
This is the first meeting of creditors required under Section
341(a) of the U.S. Bankruptcy Code in all bankruptcy cases.
All creditors are invited, but not required, to attend. This
Meeting of Creditors offers the one opportunity in a bankruptcy
proceeding for creditors to question a responsible office of the
Debtor under oath about the company's financial affairs and
operations that would be of interest to the general body of
creditors.
Basalt, Colorado-based Aspen Legacy Holdings, LLC, filed for
Chapter 11 bankruptcy protection on June 23, 2010 (Bankr. D. Colo.
Case No. 10-25617). Shaun A. Christensen, Esq., who has an office
in Denver, Colorado, assists the Company in its restructuring
effort. The Company estimated its assets and debts at $10,000,001
to $50,000,000.
ASSET MANAGEMENT: Case Summary & 20 Largest Unsecured Creditors
---------------------------------------------------------------
Debtor: Asset Management & Marketing, LLC
dba Oak Ridge Lodge
dba Squirrel's Pub & Pantry
fdba Best Western Oak Ridge Lodge
158 Hot Springs Blvd.
Pagosa Springs, CO 81147
Bankruptcy Case No.: 10-26368
Chapter 11 Petition Date: June 30, 2010
Court: United States Bankruptcy Court
District of Colorado (Denver)
Judge: Elizabeth E. Brown
Debtor's Counsel: Jeffrey Weinman, Esq.
E-mail: jweinman@epitrustee.com
William A. Richey, Esq.
E-mail: lkraai@weinmanpc.com
730 17th St., Suite 240
Denver, CO 80202
Tel: (303) 572-1010
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/cob10-26368.pdf
The petition was signed by Radine Coopersmith, managing member.
AWTREY PROPERTIES: Voluntary Chapter 11 Case Summary
----------------------------------------------------
Debtor: Awtrey Properties, Inc.
510 Happy Valley Road
Pleasanton, CA 94566
Bankruptcy Case No.: 10-47414
Chapter 11 Petition Date: June 30, 2010
Court: U.S. Bankruptcy Court
Northern District of California (Oakland)
Judge: Edward D. Jellen
Debtor's Counsel: Scott J. Sagaria, Esq
Law Offices of Scott J. Sagaria
333 W San Carlos Street #1700
San Jose, CA 95110
Tel: (408) 279-2288
E-mail: sjsagaria@sagarialaw.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
According to the schedules, the Debtor says that assets total
$1,523,844 while debts total $1,910,000.
The Debtor did not file a list of creditors together with its
petition.
The petition was signed by Donna Flavetta, responsible agent.
Debtor-affiliates filing separate Chapter 11 petitions:
Entity Case No. Petition Date
------ -------- -------------
Any Emiko Awtrey Trust 10-42626 03/10/10
Donna Flavetta 09-48542 09/11/09
AMADEUS TRUST: Chapter 11 Reorganization Case Dismissed
-------------------------------------------------------
The Hon. Alan M. Ahart of the U.S. Bankruptcy Court for the
Central District of California dismissed the Chapter 11 case of
Amadeus Trust LLC.
As reported in the Troubled Company Reporter on May 28, 2010,
Peter C. Anderson, U.S. Trustee for Region 16, sought for the
dismissal of the Debtor's case because:
-- the petition was filed by a Company without an attorney
which violates the Local Bankruptcy Code; and
-- the Debtor failed to comply with the requirements of the
U.S. Trustee by failing to, among other things, file its
schedules of assets and liabilities and statement of
financial affairs.
The Court directed the Debtor to pay the $650 U.S. Trustee
quarterly fees.
Pacific Palisades, California-based Amadeus Trust LLC filed for
Chapter 11 bankruptcy protection on April 15, 2010 (Bankr. C.D.
Calif. Case No. 10-24450). The Company estimated its assets and
debts at $10,000,001 to $50,000,000.
ARAMARK CORP: Bank Debt Trades at 4% Off in Secondary Market
------------------------------------------------------------
Participations in a syndicated loan under which ARAMARK Corp. is a
borrower traded in the secondary market at 95.78 cents-on-the-
dollar during the week ended Friday, July 2, 2010, according to
data compiled by Loan Pricing Corp. and reported in The Wall
Street Journal. This represents a drop of 0.80 percentage points
from the previous week, The Journal relates. The Company pays 325
basis points above LIBOR to borrow under the facility, which
matures on July 1, 2016. The bank loan is not rated by Moody's
while it carries Standard & Poor's BB rating. The debt is one of
the biggest gainers and losers among 191 widely quoted syndicated
loans with five or more bids in secondary trading for the week
ended Friday.
ARAMARK Corp. -- http://www.aramark.com/-- is the world's #3
contract foodservice provider (behind Compass Group and Sodexo)
and the #2 uniform supplier (behind Cintas) in the US. It offers
corporate dining services and operates concessions at many sports
arenas and other entertainment venues, while its ARAMARK
Refreshment Services unit is a leading provider of vending and
beverage services. The Company also provides facilities
management services. Through ARAMARK Uniform and Career Apparel,
the company supplies uniforms for healthcare, public safety, and
technology workers. Founded in 1959, ARAMARK is owned by an
investment group led by chairman and CEO Joseph Neubauer.
ARVIN STEPHENS: Case Summary & 17 Largest Unsecured Creditors
-------------------------------------------------------------
Joint Debtors: Arvin E. Stephens
fdba Ninnekah Quick Mart, LLC
Karen J. Stephens
P.O Box 7
Ninnekah, OK 73067
Bankruptcy Case No.: 10-14028
Chapter 11 Petition Date: June 30, 2010
Court: United States Bankruptcy Court
Western District of Oklahoma (Oklahoma City)
Judge: T.M. Weaver
Debtor's Counsel: James Brunson, Esq.
AG-LAW, P.C.
500 N. Walker, Suite C-100
Oklahoma City, OK 73102
Tel: (405) 415-1780
Fax: (405) 415-1703
E-mail: Jayfarmlaw@netzero.net
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
A list of the Company's 17 largest unsecured creditors
filed together with the petition is available for free
at http://bankrupt.com/misc/okwb10-14028.pdf
The petition was signed by Arvin E. Stephens and Karen J.
Stephens.
ARVINMERITOR INC: Files 2009 Report on Hourly Employees Plan
------------------------------------------------------------
ArvinMeritor, Inc., filed with the Securities and Exchange
Commission an annual report on Form 11-K for the ArvinMeritor,
Inc. Hourly Employees Savings Plan for the year ended December 31,
2009. Net assets available for benefits at December 31, 2009,
total $24,627,987.
A full-text copy of the Form 11-K report is available at no charge
at http://ResearchArchives.com/t/s?65d2
About ArvinMeritor Inc.
Based in Troy, Michigan, ArvinMeritor, Inc. (NYSE: ARM) --
http://www.arvinmeritor.com/-- is a premier global supplier of a
broad range of integrated systems, modules and components to the
motor vehicle industry. The Company marks its centennial
anniversary in 2009, celebrating a long history of 'forward
thinking.' The company serves commercial truck, trailer and
specialty original equipment manufacturers and certain
aftermarkets, and light vehicle manufacturers.
The Company's balance sheet at March 31, 2010, showed
$2.769 billion in total assets and $3.646 billion in total
liabilities, for a $877.0 million stockholders' deficit.
Stockholder's deficit was at $1.166 billion at March 31, 2009.
* * *
As reported by the Troubled Company Reporter on June 14, 2010,
Standard & Poor's Ratings Services raised its corporate credit
rating on ArvinMeritor to 'B-' from 'CCC+'. The outlook is
stable. At the same time, S&P also raised its issue-level ratings
on the company's senior secured and unsecured debt.
In January 2010, Moody's Investors Service affirmed the Corporate
Family and Probability of Default ratings of ArvinMeritor at
'Caa1'.
ARVINMERITOR INC: Files 2009 Annual Report on Savings Plan
----------------------------------------------------------
ArvinMeritor, Inc., filed with the Securities and Exchange
Commission an annual report on Form 11-K for the ArvinMeritor,
Inc. Savings Plan for the year ended December 31, 2009. Net
assets available for benefits at December 31, 2009, total
$249,370,865.
A full-text copy of the Form 11-K report is available at no charge
at http://ResearchArchives.com/t/s?65d3
About ArvinMeritor Inc.
Based in Troy, Michigan, ArvinMeritor, Inc. (NYSE: ARM) --
http://www.arvinmeritor.com/-- is a premier global supplier of a
broad range of integrated systems, modules and components to the
motor vehicle industry. The Company marks its centennial
anniversary in 2009, celebrating a long history of 'forward
thinking.' The company serves commercial truck, trailer and
specialty original equipment manufacturers and certain
aftermarkets, and light vehicle manufacturers.
The Company's balance sheet at March 31, 2010, showed
$2.769 billion in total assets and $3.646 billion in total
liabilities, for a $877.0 million stockholders' deficit.
Stockholder's deficit was at $1.166 billion at March 31, 2009.
* * *
As reported by the Troubled Company Reporter on June 14, 2010,
Standard & Poor's Ratings Services raised its corporate credit
rating on ArvinMeritor to 'B-' from 'CCC+'. The outlook is
stable. At the same time, S&P also raised its issue-level ratings
on the company's senior secured and unsecured debt.
In January 2010, Moody's Investors Service affirmed the Corporate
Family and Probability of Default ratings of ArvinMeritor at
'Caa1'.
ASPEN LEGACY: Taps Appel & Lucas as Bankruptcy Counsel
------------------------------------------------------
Aspen Legacy Holdings, LLC, has asked for authorization from the
U.S. Bankruptcy Court for the District of Colorado to appoint
Appel & Lucas, P.C., as bankruptcy counsel.
Appel & Lucas will, among other things:
a. advise the Debtor regarding the preparation and filing of
a reorganization plan and disclosure statement and other
matters in connection with its reorganization;
b. negotiate with parties in interest in connection with the
formulation of a Plan and other matters in connection with
the case;
c. assist, advise and represent the Debtor in connection with
activities which the Debtor may pursue in connection with
this case, including the prosecution and defense of any
adversary proceedings or other litigation; and
d. perform other services for the Debtor as may be necessary
or desirable in connection with or related to the Debtor's
Chapter 11 case.
Shaun A. Christensen, Esq., at Appel & Lucas, P.C., says that the
firm will be paid based on its hourly rates:
Garry R. Appel $415
Peter J. Lucas $350
Shaun A. Christensen $275
James P. Eckels $175
John M. Nunnally $150
Attorney $175-$415
Paralegal $150
Mr. Christensen assures the Court that Appel & Lucas is a
"disinterested person" as that term is defined in Section 101(14)
of the Bankruptcy Code.
Basalt, Colorado-based Aspen Legacy Holdings, LLC, filed for
Chapter 11 bankruptcy protection on June 23, 2010 (Bankr. D. Colo.
Case No. 10-25617). The Company estimated its assets and debts at
$10,000,001 to $50,000,000.
ASSET MANAGEMENT: Case Summary & 20 Largest Unsecured Creditors
---------------------------------------------------------------
Debtor: Asset Management & Marketing, LLC
dba Oak Ridge Lodge
dba Squirrel's Pub & Pantry
fdba Best Western Oak Ridge Lodge
158 Hot Springs Blvd.
Pagosa Springs, CO 81147
Bankruptcy Case No.: 10-26368
Chapter 11 Petition Date: June 30, 2010
Court: United States Bankruptcy Court
District of Colorado (Denver)
Judge: Elizabeth E. Brown
Debtor's Counsel: Jeffrey Weinman, Esq.
E-mail: jweinman@epitrustee.com
William A. Richey, Esq.
E-mail: lkraai@weinmanpc.com
730 17th St., Suite 240
Denver, CO 80202
Tel: (303) 572-1010
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/cob10-26368.pdf
The petition was signed by Radine Coopersmith, managing member.
ATRIUM COS: Selects Kevin O'Meara as New Chief Executive Officer
----------------------------------------------------------------
Home Channel News reports that Atrium Cos. named Kevin O'Meara as
its new chief executive officer, replacing the company's president
and CEO Gregory Faherty.
According to the report, Mr. O'Meara is currently Atrium's
chairman, as well as an operating partner at Golden Gate Capital,
Atrium's majority shareholder. Prior to his involvement with
Golden Gate, Mr. O'Meara served as president and chief operating
officer at Builders FirstSource. Mr. O'Meara was also VP
strategic planning and business development at building materials
manufacturer Fibreboard Corp., as well as a strategy consultant at
Bain & Co.
Atrium Companies, Inc., headquartered in Dallas, TX, is one of the
leading manufacturers of residential vinyl and aluminum windows in
North America (based on units sold) producing approximately
3.5 million windows in 2009.
Standard & Poor's Ratings Services raised its corporate credit
rating on Atrium Companies Inc. to 'B' from 'D'. At the same
time, S&P assigned a 'B' (the same as the corporate credit rating)
issue-level rating to the company's senior secured term loan. S&P
assigned a recovery rating of '3' to this debt, which indicates
S&P's expectation of meaningful (50% to 70%) recovery in the event
of a payment default. The rating outlook is stable.
AVAYA INC: Bank Debt Trades at 15% Off in Secondary Market
----------------------------------------------------------
Participations in a syndicated loan under which Avaya, Inc., is a
borrower traded in the secondary market at 85.31 cents-on-the-
dollar during the week ended Friday, July 2, 2010, according to
data compiled by Loan Pricing Corp. and reported in The Wall
Street Journal. This represents a drop of 0.77 percentage points
from the previous week, The Journal relates. The Company pays 275
basis points above LIBOR to borrow under the facility, which
matures on Oct. 26, 2014. The bank debt is not rated by Moody's
and Standard & Poor's. The debt is one of the biggest gainers and
losers among 191 widely quoted syndicated loans with five or more
bids in secondary trading for the week ended Friday.
Avaya, Inc., based in Basking Ridge, New Jersey, is a supplier of
communications systems and software for enterprise customers.
The Troubled Company Reporter stated on Dec. 23, 2009, that
Moody's downgraded Avaya's corporate family rating to B3 from B2.
The downgrade was driven by challenges presented by the
acquisition of Nortel's enterprise assets as well as the large
amount of additional debt incurred to finance the acquisition
(around $1 billion).
B. C. BUNDT: Voluntary Chapter 11 Case Summary
----------------------------------------------
Debtor: B. C. Bundt, Inc.
P.O. Box 271848
Tampa, FL 33688
Bankruptcy Case No.: 10-15936
Chapter 11 Petition Date: June 30, 2010
Court: U.S. Bankruptcy Court
Middle District of Florida (Tampa)
Judge: Caryl E. Delano
Debtor's Counsel: Susan H. Sharp, Esq.
Stichter, Riedel, Blain & Prosser, P.A.
110 E Madison Street, Suite 200
Tampa, FL 33602
Tel: (813) 229-0144
Fax: (813) 229-1811
E-mail: ssharp.ecf@srbp.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
The Debtor did not file a list of creditors together with its
petition.
The petition was signed by James J. Hokes, chief operating
officer/restructuring officer.
BAINBRIDGE SHOPPING: U.S. Trustee Unable to Form Creditors Panel
----------------------------------------------------------------
The Office of the U.S. Trustee for Region 21 notified the U.S.
Bankruptcy Court for the Southern District of Florida that until
further notice, it will not appoint an official committee of
unsecured creditors in the Chapter 11 case of Bainbridge Shopping
Center II, LLC.
Jupiter, Florida-based Bainbridge Shopping Center II, LLC, owns
and operates the Marketplace at Four Corners shopping center in a
southeastern suburb of Cleveland, Ohio. The Company filed for
Chapter 11 bankruptcy protection on April 11, 2010 (Bankr. S.D.
Fla. Case No. 10-19383). Arthur J. Spector, Esq., who has an
office in Ft. Lauderdale, Florida, assists the Company in its
restructuring effort. The Company estimated its assets and debts
at $10,000,001 to $50,000,000.
The Debtor's affiliate, John R. McGill, filed a separate Chapter
11 petition on May 15, 2009 (Case No. 09-19425).
BAY OAKS: Case Summary & 5 Largest Unsecured Creditors
------------------------------------------------------
Debtor: Bay Oaks Condominiums, L.L.C.
fka Vista View LLC
1474-A West 84th Street
Hialeah, FL 33014
Bankruptcy Case No.: 10-31329
Chapter 11 Petition Date: June 29, 2010
Court: U.S. Bankruptcy Court
Northern District of Florida (Pensacola)
Debtor's Counsel: David Luther Woodward, Esq.
Law Offices of David Luther Woodward PA
1415 Lemhurst Road
P.O. Box 4475
Pensacola, FL 32507-0475
Tel: (850) 456-4010
Fax: (850) 456-1955
E-mail: dwoodward@woodlawfla.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
According to the schedules, the Debtor says that assets total
$3,833,448 while debts total $3,627,339.
A copy of the Debtor's list of 5 largest unsecured
creditors filed together with the petition is available for
free at http://bankrupt.com/misc/flnb10-31329.pdf
The petition was signed by L. Michael Osman, managing member.
BEAM MANAGEMENT: Taps Messana Stern as General Bankruptcy Counsel
-----------------------------------------------------------------
Beam Management, LLC, asks the U.S. Bankruptcy Court Middle
District of Florida for permission to employ Thomas M. Messana,
Esq. and the law firm of Messana Stern, P.A., as general
bankruptcy counsel.
Messana Stern will, among other things:
a) advise the Debtor with respect to its powers and duties as
debtor and debtor-in-possession in the continued management
and operation of its business and assets;
b) attend meetings and negotiate with representatives of
creditors and other parties-in-interest and advise and
consult on the conduct of the cases, including all of the
legal and administrative requirements of operating in
Chapter 11; and
c) advise the Debtor in connection with any contemplated sales
of assets or business combinations, including the
negotiation of sales promotion, liquidation, stock purchase,
merger or joint venture agreements, formulate and implement
bidding procedures, evaluate competing offers, draft
appropriate corporate documents with respect to the proposed
sales, and counsel the Debtor in connection with the closing
of the sales.
Mr. Messana tells the Court that the firm received an initial
$15,000 retainer from the Debtor for prepetition legal services
relating to the Debtor's creditor relationships. MS received an
additional $30,000 and $70,000. This $100,000, in addition to the
$4,667 remaining from the initial retainer, constitutes MS'
retainer for bankruptcy-related services.
The firm will be paid based on its hourly rates:
Mr. Messana $475
Scott A. Underwood $315
David N. Stern $375
Michael S. Hoffman $230
Laura Coffy $250
Brett Lieberman $205
Nancy Barris $155
Elizabeth Mair $155
Mr. Messana assures the Court that MS is a "disinterested person"
as that term is defined in Section 101(14) of the Bankruptcy Code.
Mr. Messana can be reached at:
Messana Stern, P.A.
401 East Las Olas Boulevard, Suite 1400
Ft. Lauderdale, FL 33301
Tel: (954) 712-7400
Fax: (954) 712-7401
E-mail: tmessana@mws-law.com
About Beam Management, LLC
Sarasota, Florida-based Beam Management, LLC, dba Harmony
Healthcare and Rehabilitation Center of Sarasota filed for
Chapter 11 (Bankr. M.D. Fla. 10-08580). Michael S. Hoffman, Esq.,
Scott A. Underwood, Esq., and Thomas M. Messana, Esq. at Messana
Stern PA, assist the Debtor in its restructuring effort.
Konagd Corporation, Charles Grossman, and GF Health Products,
Inc., filed for an involuntary Chapter 11 on April 13, 2010. The
petitioners are represented by Philip J. Landau, Esq. at
Shraiberg, Ferrara & Landau, P.A.
BEAM MANAGEMENT: Has Until September 17 to File Chapter 11 Plan
---------------------------------------------------------------
The U.S. Bankruptcy Court Middle District of Florida directed Beam
Management, LLC, to file a Plan of Reorganization and Disclosure
Statement by September 17, 2010.
The Court said that if the Debtor fails to file a Plan and
Disclosure Statement by the filing deadline, the Court will issue
an order to show cause why the case must not be dismissed or
converted to a Chapter 7 case.
Sarasota, Florida-based Beam Management, LLC, dba Harmony
Healthcare and Rehabilitation Center of Sarasota filed for
Chapter 11 (Bankr. M.D. Fla. 10-08580). Michael S. Hoffman, Esq.,
Scott A. Underwood, Esq., and Thomas M. Messana, Esq. at Messana
Stern PA, assist the Debtor in its restructuring effort.
Konagd Corporation, Charles Grossman, and GF Health Products,
Inc., filed for an involuntary Chapter 11 on April 13, 2010. The
petitioners are represented by Philip J. Landau, Esq. at
Shraiberg, Ferrara & Landau, P.A.
BEAM MANAGEMENT: Files Schedules of Assets and Liabilities
----------------------------------------------------------
Beam Management, LLC, filed with the U.S. Bankruptcy Court Middle
District of Florida its schedules of assets and liabilities,
disclosing:
Name of Schedule Assets Liabilities
---------------- ----------- -----------
A. Real Property $0
B. Personal Property $1,474,991
C. Property Claimed as
Exempt
D. Creditors Holding
Secured Claims $0
E. Creditors Holding
Unsecured Priority
Claims $3,350,371
F. Creditors Holding
Unsecured Non-priority
Claims $12,632,441
----------- -----------
TOTAL $1,474,991 $15,982,812
Sarasota, Florida-based Beam Management, LLC, dba Harmony
Healthcare and Rehabilitation Center of Sarasota filed for
Chapter 11 (Bankr. M.D. Fla. 10-08580). Michael S. Hoffman, Esq.,
Scott A. Underwood, Esq., and Thomas M. Messana, Esq. at Messana
Stern PA, assist the Debtor in its restructuring effort.
Konagd Corporation, Charles Grossman, and GF Health Products,
Inc., filed for an involuntary Chapter 11 on April 13, 2010. The
petitioners are represented by Philip J. Landau, Esq. at
Shraiberg, Ferrara & Landau, P.A.
BEAZER HOMES: Files 2009 Annual Report on 401(k) Plan
-----------------------------------------------------
Beazer Homes USA, Inc., filed with the Securities and Exchange
Commission an annual report on Form 11-K for The Beazer Homes USA,
Inc. 401(k) Plan for the year ended December 31, 2009. Net assets
available for benefits at December 31, 2009, total $68,440,929.
A full-text copy of the Form 11-K report is available at no charge
at http://ResearchArchives.com/t/s?65cb
About Beazer Homes
Beazer Homes USA, Inc. (NYSE: BZH) -- http://www.beazer.com/--
headquartered in Atlanta, is one of the country's 10 largest
single-family homebuilders with continuing operations in Arizona,
California, Delaware, Florida, Georgia, Indiana, Maryland, Nevada,
New Jersey, New Mexico, North Carolina, Pennsylvania, South
Carolina, Tennessee, Texas, and Virginia. Beazer Homes is listed
on the New York Stock Exchange under the ticker symbol "BZH."
The Company's balance sheet at March 31, 2010, showed
$2.02 billion in total assets and $1.67 billion in total
liabilities for a $353.15 million total stockholders' equity.
On May 4, 2010, Standard & Poor's Ratings Services raised its
corporate credit rating on Beazer Homes USA Inc. to 'B-' from
'CCC+'. At the same time, S&P raised its rating on the company's
second-lien notes to 'B' from 'B-', and S&P raised its rating on
the company's senior unsecured and subordinated convertible notes
to 'CCC' from 'CCC-'. S&P also assigned its 'CCC' rating to the
company's proposed $300 million senior unsecured notes due 2018.
S&P revised its outlook to stable from positive.
Moody's Investors Service raised the ratings of Beazer Homes USA,
Inc., including its corporate family rating and probability of
default rating to Caa1 from Caa2. At the same time, Moody's
assigned a Caa2 rating to the company's new $300 million of senior
unsecured notes due 2018, proceeds of which will be used for debt
repurchases, including a call of notes due in 2012, and affirmed
the ratings on the company's senior secured notes at B1 and
existing senior unsecured notes at Caa2. The speculative grade
liquidity rating is also affirmed at SGL-3. The outlook is
revised to stable from negative.
BLOCKBUSTER INC: Meyer, Fernandes & 5 Others Voted to Board
-----------------------------------------------------------
Blockbuster Inc. reported preliminary shareholder voting results
at the company annual shareholders meeting in Dallas. Blockbuster
shareholders overwhelmingly approved combining Class A common
stock and Class B common stock into a single stock. Shareholders
also approved the option for a reverse stock split as part of the
Company's compliance plan with the New York Stock Exchange.
Additionally, named to the Company's board of directors by
shareholder voting and company agreement were:
* James W. Keyes;
* Kathleen Dore;
* Jay Fitzsimmons;
* Gregory S. Meyer;
* Gary J. Fernandes;
* Edward Bleier;
* Jules Haimovitz; and
* Strauss Zelnick.
"It was clear in the proxy voting that Greg had strong support
among several of our shareholders and the interests of Blockbuster
are best served by bringing him aboard while retaining
Gary Fernandes," said Jim Keyes, chairman and chief executive
officer of Blockbuster.
"I am pleased that this settlement will allow me to work in
partnership with Blockbuster's board to help the company achieve
its full potential. I have a very strong interest in and
commitment to the company. I look forward to working with Jim and
the other directors," said Greg Meyer.
In addition, shareholders ratified PricewaterhouseCoopers LLP to
serve as independent accountants. Shareholders also affirmed the
company's executive compensation policies.
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.
BLOCKBUSTER INC: Inks Settlement with Stockholder Greg Meyer
------------------------------------------------------------
Blockbuster Inc. entered into a settlement agreement with Gregory
S. Meyer, a stockholder of the Company who nominated himself and
was soliciting proxies with respect to his election to the
Company's Board of Directors at the Company's 2010 annual meeting
of stockholders.
Pursuant to the Settlement Agreement, among other things:
i) the Company agreed to increase the size of the Board from
seven to eight members and appoint Mr. Meyer to fill the
vacancy resulting therefrom,
ii) Mr. Meyer agreed to terminate his solicitation of proxies
with respect to the 2010 annual meeting,
iii) Mr. Meyer agreed to be subject to certain standstill
restrictions, transfer limitations and voting agreements
relating to his shares of Company common stock, and
iv) Mr. Meyer agreed to be responsible for all fees and
expenses incurred in connection with his solicitation of
proxies.
A full-text copy of the settlement agreement is available for free
at http://ResearchArchives.com/t/s?65c7
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.
BRIAN GROSCH: Case Summary & 20 Largest Unsecured Creditors
-----------------------------------------------------------
Debtor: Brian C. Grosch
dba South Florida Rentals
700 Bannock Court
Palm Beach Gardens, FL 33418
Bankruptcy Case No.: 10-2877
Chapter 11 Petition Date: June 30, 2010
Court: U.S. Bankruptcy Court
Southern District of Florida (West Palm Beach)
Judge: Erik P. Kimball
Debtor's Counsel: Eric A. Rosen, Esq.
2925 PGA Boulevard # 100
Palm Beach Gardens, FL 33410
Tel: (561) 799-6040
Fax: (561) 799-4047
E-mail: erosen@rosenwinig.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
According to the schedules, the Debtor says that assets total
$3,306,607 while debts total $2,749,282.
A copy of the Debtor's list of 20 largest unsecured
creditors filed together with the petition is available for
free at http://bankrupt.com/misc/flsb10-28779.pdf
The petition was signed by the Debtor.
BUCYRUS COMMUNITY: Can Incur DIP Loans from Stearns Healthcare
--------------------------------------------------------------
The Hon. Russ Kendig of the U.S. Bankruptcy Court for the Northern
District of Ohio authorized Bucyrus Community Hospital, Inc., to
obtain $3,500,000 of postpetition financing from Stearns
Healthcare Finance.
The Debtor was unable to obtain financing on more favorable terms
other than from SHF.
The terms of the DIP Facility is summarized as:
Amount: The DIP Facility provides for borrowings up to
$3,500,000 to be used to pay third-party
settlements with Medicare, for working capital,
or general corporate purposes of the Debtor.
Eligibility: The Debtors will be able to borrow up to 85% of
the net collectible value of eligible accounts
not more than 150 days from the invoice date.
Security: Under the DIP Facility, SHF will obtain first
priority liens and security interest in all the
accounts receivable of BCH, now owned or
hereafter acquired.
Term: The term of the DIP Facility will be three years
from the closing date. If the DIP Facility is
terminated by the Debtors prior to the expiration
of the term for any reason, whatsoever, or if SHF
terminates the agreement for cause, the Debtors
would be obligated to pay SHF an early
termination fee equal to 3% of the DIP Facility
if terminated during the first year of the term,
2% of the DIP Facility if terminated during the
second year of the term, and an early termination
of 1% of the DIP Facility thereafter.
Interest Rate: Base Rate plus 5%, with a minimum of 10%.
Initial
Deposit: Upon acceptance of the general terms of the
letter, the Debtors are required to remit a
$20,000 initial deposit.
As adequate protection for the Debtors' prepetition lenders,
United Bank, Division of the Park National Bank, and Lancaster
Pollard Mortgage Company, the Debtors will place the first
$524,000 borrowed under the DIP Facility in an escrow account.
The Debtors will also make adequate protection payment amounting
$100,000 per month to Lancaster Pollard, or its assignee.
About Bucyrus Community Hospital, Inc.
Bucyrus, Ohio-based Bucyrus Community Hospital, Inc., filed for
Chapter 11 bankruptcy protection on March 19, 2010 (Bankr. N.D.
Ohio Case No. 10-61078). The Company estimated its assets and
debts at $10,000,001 to $50,000,000.
The Company's affiliate, Bucyrus Community Physicians, Inc., filed
a separate Chapter 11 petition (Case No. 10-61081) on March 19,
2010, estimating its assets and debts at $500,000 to $1 million.
BURLINGTON COAT: Fitch Affirms Issuer Default Rating at 'B-'
------------------------------------------------------------
Fitch Ratings has affirmed its ratings on Burlington Coat Factory
Investment Holdings, Inc. and Burlington Coat Factory Warehouse
Corp.:
Burlington Coat Factory Investment Holdings, Inc.
-- Long-term Issuer Default Rating at 'B-';
-- $99 million senior discount notes at 'C/RR6'.
Burlington Coat Factory Warehouse Corp.
-- Long-term IDR at 'B-';
-- $900 million term loan at 'B/RR3';
-- $305 million senior unsecured notes at 'CC/RR6';
In addition Fitch has upgraded Burlington Coat Factory Warehouse
Corp.'s rating on the $721 million asset-based revolver to 'BB-
/RR1' from 'B+/RR1'.
The Rating Outlook is Stable. The company had approximately
$1.3 billion of debt outstanding as of May 1, 2010.
The ratings reflect BCF's brand recognition as a discounter of
apparel and home products with significant geographic reach,
improved operating performance and credit metrics, positive free
cash flow generation and adequate liquidity. The ratings also
consider the company's high leverage and intense competition in
the discounted apparel and home furnishings segments.
BCF has a broad geographic reach with 449 stores across 44 states
and $3.6 billion in revenues in the last 12 months ended May 1,
2010. The company's business is seasonal with approximately 50%
of revenues occurring from September to January. BCF's comparable
store sales improved to 3.3% in the first quarter of fiscal 2010
ending May 1, 2010 from 4.8% in the transition period, which began
on May 31, 2009 and ended on Jan. 30, 2010, due to the company's
value offering as well as ongoing merchandising initiatives and
store refresh program that have improved overall customer
satisfaction. Fitch expects BCF will have low single-digit
comparable store sales growth in fiscal 2010 given ongoing
initiatives to improve comparable store sales trends and easier
comparisons.
BCF's operating margins have strengthened as a result of fewer
markdowns due to better inventory management. In addition, cost
cutting efforts resulted in operating EBIT margin increasing 190
basis points to 4.3% in the LTM period compared to 2.4% in fiscal
2009 ending May 30, 2009. This, combined with a debt reduction of
$170 million resulted in LTM leverage, defined as total adjusted
debt/EBITDAR, decreasing to 5.5 times from 6.6x during the same
period. Interest coverage, defined as EBITDAR/interest expense
plus rent, was slightly better at 1.8x versus 1.6x over the same
period as well. For fiscal 2010 ending Jan. 29, 2011, Fitch
expects leverage and coverage will be around 6.0x and 1.7x,
respectively. While fiscal 2010 credit metrics will improve
compared to fiscal 2009, they will weaken relative to LTM figures
as Fitch expects borrowings under the credit facility will
increase at year end to fund the higher-than-normal payables
outstanding at May 1, 2010.
BCF is expected to have adequate liquidity to meet its near-term
capital and debt service requirements. The next significant debt
maturity is in fiscal 2013 when the company's $853 million term
loan (amount adjusted for required amortization) is due. The
company generated positive free cash flow of $455 million in the
LTM period and had $237 million of cash and cash equivalents as
well as approximately $307 million of availability under its
$721 million credit facility as of May 1, 2010. Fitch recognizes
the increases in cash and free cash flow will not be sustainable
as the company's payables will return to a normalized level later
this year. However, free cash flow is expected to remain positive
and cash is projected to be around $60 million at the end of
fiscal 2010.
The upgrade of the asset-based revolver reflects Fitch's recovery
analysis (as described below) which indicates an outstanding
recovery prospect (91%-100%) for the asset-based revolver. This
results in an upgrade to 'BB-/RR1' from 'B+/RR1' and is three
notches above the 'B-' IDR. While the revolver had outstanding
recovery prospects in the past, Fitch did not upgrade the rating
given declining fundamentals at that time. The asset-based
revolver is secured by a pledge of inventory and accounts
receivable.
The ratings on the other securities also reflect Fitch's recovery
analysis which is based on the enterprise value of the company.
The enterprise value of approximately $1 billion is based on a
distressed EBITDA of approximately $250 million and a market
multiple of 4x in a distressed scenario. Applying this value
across the capital structure results in good recovery prospects
(51%-70%) for the term loan. The term loan is rated 'B/RR3' and
is secured by property. The unsecured senior notes at the
operating company level are guaranteed by the holding company and
its current and future restricted subsidiaries. These notes are
rated 'CC/RR6' reflecting poor recovery prospects (0%-10%). The
unsecured senior discount notes are structurally subordinated at
the holding company level. They are rated 'C/RR6' reflecting poor
recovery prospects (0%-10%) in a distressed case and are one notch
below the senior notes.
CAPITAL AUTOMOTIVE: S&P Alters Outlook to Stable as Sales Improve
-----------------------------------------------------------------
Standard & Poor's Ratings Services revised its outlook on Capital
Automotive LLC and Capital Automotive L.P. to stable from negative
on stabilizing trends in U.S. light vehicle sales. At the same
time, S&P affirmed its 'B' corporate credit rating on CARS and its
'B' rating on CARS' senior secured debt. The recovery rating
remains a '3', indicating S&P's expectation of a meaningful
recovery (50%-70%) in the event of a payment default. The rating
actions affect a revolving secured credit facility (roughly
$90 million currently outstanding) and a secured term loan
(roughly $1.62 billion aggregate outstanding).
"The outlook revision acknowledges a stabilization of U.S. light
vehicle sales, which S&P believes has bolstered the financial
prospects for CARS' auto dealer tenants," said credit analyst
Elizabeth Campbell. "Stabilizing consumer confidence and credit
availability should support slightly higher sales of new vehicles
this year, as well as continued demand for parts and services. As
tenant challenges have abated, so has the risk of erosion to
rental cash flow coverage for CARS' portfolio, in S&P's view."
S&P believes that CARS' counterparty risk has abated as its auto
dealer tenants' business and financial profiles have been
bolstered by the growth in U.S. light vehicle sales. As a result,
S&P believes the recent improvement in CARS' rent coverage
measures is sustainable. However, S&P considers CARS' financial
profile as weak because of the company's high leverage,
constrained liquidity, and slim debt service coverage. Longer
term, ratings improvement is unlikely absent a recapitalization.
Alternatively, S&P would consider lowering the ratings if key
tenants were to come under pressure.
CAPITOL PROPERTIES: Case Summary & Largest Unsecured Creditor
-------------------------------------------------------------
Debtor: Capitol Properties, LLC
851 Galleria Bouelvard
Roseville, CA 95678
Bankruptcy Case No.: 10-37129
Chapter 11 Petition Date: June 30, 2010
Court: U.S. Bankruptcy Court
Eastern District of California (Sacramento)
Judge: Thomas Holman
Debtor's Counsel: W. Steven Shumway, Esq.
2140 Professional Dr #250
Roseville, CA 95661
Tel: (916) 789-8821
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
According to the schedules, the Debtor says that assets total
$6,514,482 while debts total $7,497,480.
The petition was signed by Douglas Moody of SMG Ventures, LLC,
managing member.
The list of unsecured creditors filed together with its petition
contains only one entry:
Entity Nature of Claim Claim Amount
------ --------------- ------------
Douglas W. Moody -- $1,500,000
Delta Copy System
1143 N. Market Boulevard #5
Sacramento, CA 95821
CAPTAIN VAN DYKE: Wants to Hire Stichter Riedel as Bankr. Counsel
-----------------------------------------------------------------
Captain Van Dyke Trust has sought permission from the U.S.
Bankruptcy Court for the Middle District of Florida to employ
Stichter Riedel, Blain & Prosser, PA., as bankruptcy counsel.
Stichter Riedel will, among other things:
(a) advise the Debtor with respect to its responsibilities in
complying with the U.S. Trustee's Operating Guidelines
and Reporting Requirements and with the Local Rules of
the Court;
(b) prepare motions, pleadings, orders, applications,
adversary proceedings, and other legal documents
necessary in the administration of this case;
(c) protect the interest of the Debtor in all matters pending
before the Court, including attendance at hearings; and
(d) represent the Debtor in negotiations with its creditors
in the preparation of a disclosure statement and a plan
of reorganization.
Stichter Riedel will be paid based on its hourly rates:
Russell M. Blain $460
Stephen R. Leslie $355
Partners $325-$475
Associates $175-$325
Paralegals $150
Stephen R. Leslie, Esq., an attorney at Stichter Riedel, assures
the Court that Appel & Lucas is a "disinterested person" as that
term is defined in Section 101(14) of the Bankruptcy Code.
Saint Petersburg, Florida-based Captain Van Dyke Trust, dba Van
Dyke Commons, aka Van Dyke Shopping Center, filed for Chapter 11
bankruptcy protection on June 23, 2010 (Bankr. M.D. Fla. Case No.
10-14973). Russell M. Blain, Esq., at Stichter, Riedel, Blain &
Prosser, assists the Company in its restructuring effort. The
Company estimated its assets and debts at $10,000,001 to
$50,000,000.
CAPRI I, LLC: Case Summary & 20 Largest Unsecured Creditors
-----------------------------------------------------------
Debtor: Capri I, LLC
c/o Christine Thornton
Select Consulting Group, Inc.
3900 S. Hualapai Way, Suite 105
Las Vegas, NV 89147
Bankruptcy Case No.: 10-22206
Chapter 11 Petition Date: June 30, 2010
Court: U.S. Bankruptcy Court
District of Nevada (Las Vegas)
Judge: Mike K. Nakagawa
Debtor's Counsel: David A. Colvin, Esq.
Marquis & Aurbach
10001 Park Run Drive
Las Vegas, NV 89145
Tel: (702) 382-0711
E-mail: dcolvin@marquisaurbach.com
Estimated Assets: $50,000,001 to $100,000,000
Estimated Debts: $10,000,001 to $50,000,000
According to the schedules, the Debtor says that assets total
$56,006,849 while debts total $39,673,523.
The petition was signed by Gabriel A. Martinez, manager of Phoenix
83rd, LLC, the managing member.
Debtor's List of 20 Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
------ --------------- ------------
Jenberly, LLC Interstate 10 $22,785,245
745 E. Maryland Avenue #100 near 83rd Avenue
Phoenix, AZ 85014 Phoenix, AZ
Jeff Chain investor-original $7,784,380
Capri II, LLC amount invested
3900 South Hualapai Way, Suite 100
Las Vegas, NV 89147
Mark & Lori Kabins Investor-original $2,000,000
The Lori C. Kabins Separate amount invested
Property
Trust, Gibson Lowry Burris, LLP
7201 West Lake Mead Boulevard #503
Las Vegas, NV 89128
Edward Gutzman GE III, LLC investor-original $1,000,000
4281 Woodcrest Road amount invested
Las Vegas, NV 89121
Gabriel A. Martinez investor-original $1,000,000
7849 Rancho Mirage Drive amount invested
Las Vegas, NV 89113
Jeff Chain investor-original $1,000,000
3900 S. Hualapai Way, Suite 200 amount invested
Las Vegas, NV 89147
Jaswinder Grover investor-original $500,000
Partap Investments, LLC amount invested
917 Trophy Hills Drive
Las Vegas, NV 89134
Robert & Debra Strimling Investor-original $500,000
The Robert and Debra Stimling amount invested
Family Trust
9516 Tournament Canyon Drive
Las Vegas, NV 89144
John Thalgott Investor-original $332,500
John Thalgott Profit Sharing Plan amount invested
600 South Rancho, Suite 101
Las Vegas, NV 89106
George Bochanis investor-original $300,000
Yorgos Family Trust amount invested
631 South 9th Street
Las Vegas, NV 89101
Jerry F. Coday, TTEE Defined Investor-original $300,000
Benefit Plan DTD 1-1-06 amount invested
8371 Plum Creek Court
Las Vegas, NV 89113
Joel and Hilary Katz Investor-original $250,000
1604 Bayonne Drive
Las Vegas, NV 89134
Blaine R. Hess Trust investor-original $200,000
(REV DTD 9/96) amount invested
Robert & Debra Strimling Investor-original $200,000
The Robert and Debra Stimling amount invested
Family Trust
Joel & Hilary Katz Investor-original $190,000
Allergy Asthma Defined Benefit amount invested
Pension Plan
George Joseph investor-original $150,000
George G. Joseph Family LTD LP amount invested
Mary Ann Shannon Investor-original $125,000
amount invested
Charles E. Weiner investor-original $110,000
amount invested
Robert and Adel Sucher Investor-original $100,000
Robert Sucher & Adel Sucher amount invested
Tenants in Common
Victor Hill Investor-original $100,000
Victor Hill Living Trust amount invested
CAROL KARLOVICH: Section 341(a) Meeting Scheduled for July 27
-------------------------------------------------------------
The U.S. Trustee for Region 15 will convene a meeting of Carol
Karlovich's creditors on July 27, 2010, at 3:00 p.m. The meeting
will be held at the Office of the U.S. Trustee, 402 W. Broadway
(use C Street Entrance), Suite 1360, Hearing Room B, San Diego, CA
92101.
This is the first meeting of creditors required under Section
341(a) of the U.S. Bankruptcy Code in all bankruptcy cases.
All creditors are invited, but not required, to attend. This
Meeting of Creditors offers the one opportunity in a bankruptcy
proceeding for creditors to question a responsible office of the
Debtor under oath about the company's financial affairs and
operations that would be of interest to the general body of
creditors.
La Jolla, California-based Carol Karlovich filed for Chapter 11
bankruptcy protection on June 22, 2010 (Bankr. S.D. Calif. Case
No. 10-10860). John L. Smaha, Esq., at Smaha Law Group, APC,
assists the Company in its restructuring effort. The Company
estimated it assets and debts at $10,000,001 to $50,000,000.
CELSO AVARICIO: Case Summary & 20 Largest Unsecured Creditors
-------------------------------------------------------------
Debtor: Celso C. Avaricio
aka Celso Carmelo E. Avaricio, II
Celso Carmelo Exmundo Avaricio, II
3424 Hornsea Way
Sacramento, CA 95834
Bankruptcy Case No.: 10-37000
Chapter 11 Petition Date: June 29, 2010
Court: U.S. Bankruptcy Court
Eastern District of California (Sacramento)
Judge: Thomas Holman
Debtor's Counsel: W. Austin Cooper, Esq.
2525 Natomas Park Drive #320
Sacramento, CA 95833
Tel: (916) 927-2525
Estimated Assets: $0 to $50,000
Estimated Debts: $1,000,001 to $10,000,000
A copy of the Debtor's list of 20 largest unsecured
creditors filed together with the petition is available for
free at http://bankrupt.com/misc/caeb10-37000.pdf
The petition was signed by the Debtor.
CENTER CUT: Moody's Affirms 'Caa1', Hikes Outlook to Stable
-----------------------------------------------------------
Moody's Investors Service revised Center Cut Hospitality, Inc.'s
rating outlook to stable from negative and affirmed all other
ratings, including its Caa1 Corporate Family Rating, Probability
of Default Rating and B3 senior secured credit facility ratings.
Concurrently, Moody's raised the Speculative Grade Liquidity
rating to SGL-3 from SGL-4.
The revision of the rating outlook reflects the recently
decelerated negative same store sales trends at both of its
concepts, Del Frisco's and Sullivan's high end steakhouse. The
latest operating results indicated moderation in the top line
decline with 1Q 2010 down approximately 2.1% as compared to the
double-digit decline last year. "Moody's expect further
stabilization in SSS in the near term as business spending, one of
the key drivers and leading indicators for Center Cut's business
in Moody's view, continues to stabilize or recover modestly"
stated Moody's analyst John Zhao. The stable outlook also
anticipates that the company would generate positive free cash
flow, maintain adequate liquidity in the next 12 months and
continue to pay down debt with excess free cash flow.
Despite the signs of topline stabilization, the Caa1 CFR reflects
Center Cut's small scale, significant EBITDA concentration (15%-
20% of EBITDA comes from Del Frisco -- New York), and still
fragile consumer sentiment. The rating also incorporates the
possible earnings volatilities due to its tremendous exposure to
commodity input such as beef. While the favorable commodity costs
and effective cost control measures somewhat mitigated the
negative topline pressure in 2009, Center Cut's margins are likely
to deteriorate in the medium term as a result of anticipated rise
in beef prices.
Favorably, the rating continues to acknowledge the company's solid
operating margins, adequate interest coverage and more moderated
development plan for new stores in the next twelve to eighteen
months. Positive action could develop if the company can produce
materially positive same store sales and maintain healthy
operating margin and free cash flow.
SGL-3 indicates adequate liquidity position, and reflects Moody's
expectation that free cash flow will be positive as the company
prudently manage their capital spending and/or EBITDA stabilizes.
In addition, the SGL-3 assumes the company would likely have
modest cushion under its financial covenant compliance requirement
in the next 12 months.
The rating action is:
Ratings affirmed:
* Corporate Family Rating -- at Caa1
* Probability of Default Rating -- at Caa1
* $16 million senior secured revolving credit facility -- at B3
LGD3, 34%
* $110 million senior secured term loan -- at B3 LGD3, 34%
Ratings upgraded:
* Speculative Grade Liquidity Rating -- to SGL-3 from SGL-4
* Rating outlook: stable
Moody's last rating action on Center Cut occurred on August 7,
2009 when its CFR was downgraded to Caa1 from B3, and SGL rating
to SGL-4 from SGL-3.
Center Cut hospitality, Inc., headquartered in Wichita Kansas, is
an owner and operator 27 white table cloth steakhouse and seafood
restaurants located throughout the United States under the names
Del Frisco's Double Eagle Steak House and Sullivan's Steakhouses.
For the trailing twelve months ended March 31, 2010 the company's
8 Del Frisco's locations and 19 Sullivan's generated approximately
$159 million in revenue.
CHARTER COMMS: Bank Debt Trades at 8% Off in Secondary Market
-------------------------------------------------------------
Participations in a syndicated loan under which Charter
Communications, Inc., is a borrower traded in the secondary market
at 92.40 cents-on-the-dollar during the week ended Friday, July 2,
2010, according to data compiled by Loan Pricing Corp. and
reported in The Wall Street Journal. This represents a drop of
0.61 percentage points from the previous week, The Journal
relates. The Company pays 262.5 basis points above LIBOR to
borrow under the facility, which matures on March 6, 2014.
Moody's has withdrawn its rating on the bank debt while it carries
Standard & Poor's BB+ rating. The debt is one of the biggest
gainers and losers among 191 widely quoted syndicated loans with
five or more bids in secondary trading for the week ended Friday.
About Charter Communications
Based in St. Louis, Missouri, Charter Communications, Inc. (Pink
OTC: CHTRQ) -- http://www.charter.com/-- is a broadband
communications company and the fourth-largest cable operator in
the United States.
Charter Communications and more than a hundred affiliates filed
voluntary Chapter 11 petitions on March 27, 2009 (Bankr. S.D.N.Y.
Case No. 09-11435). As of March 31, 2009, the Debtors had total
assets of $13,650,000,000, and total liabilities of
$24,501,000,000. Pacific Microwave filed for bankruptcy April 20,
2009, disclosing assets of not more than $50,000 and debts of more
than $1 billion. Attorneys at Kirkland & Ellis LLP and Togut,
Segal & Segal LLP in New York, served bankruptcy counsel to the
Debtors.
Judge James M. Peck of the U.S. Bankruptcy Court for the Southern
District of New York approved the Debtors' pre-arranged joint plan
of reorganization in a bench ruling on Oct. 15, 2009. On Nov. 30,
2009, Charter Communications emerged from Chapter 11 under a plan
that reduces debt by approximately 40%, or roughly $8 billion.
CHELSEA HEIGHTS: Intervest Wants Chapter 11 Case Dismissed
----------------------------------------------------------
Intervest Mortgage-Investment Company has asked the U.S.
Bankruptcy Court for the Western District of Washington to dismiss
Chelsea Heights, LLC's Chapter 11 bankruptcy case or, in the
alternative, that Phillips Real Estate Services and Matthew Geise
continue as a custodian and be excused from any duty of turnover.
Intervest wants the court to appoint the Pierce County Superior
Court receiver, Matthew Geise of Phillips Real Estate Services, as
Chapter 11 trustee.
Intervest says that the Pierce County Superior Court Commissioner
appointed Mr. Geise as receiver on December 2, 2009, to manage the
a certain mixed-use commercial property in Tacoma, Washington,
collect building rents, finish partially completed improvements on
further credit from Intervest, attempt to restore a landlord-
tenant relationship with Multicare, and to file periodic reports
of the receiver's administration and activities pursuant to law.
On December 11, 2009, the Commissioner's order appointing the
receiver was affirmed in its entirety on a motion by Fountain Park
and Chelsea Heights for revision of the order. The receiver has
been acting and in control of the Property since that date. The
receiver succeeded in restoring the relationship with Multicare,
has capably fulfilled all other duties to date, and has been
reporting regularly to the Superior Court for Pierce County,
during a period in excess of six months.
There was scheduled to occur on June 18, 2010, a non-judicial
trustee's sale of the Property pursuant to Intervest's Deed of
Trust. The Debtor filed its Chapter 11 petition on June 18,
approximately one hour before the sale.
Aside from its ostensible ownership of the Property for a time
before the receiver was appointed in December, 2009, the Debtor is
not known to have any other significant property or business
activity. The Debtor has no equity in the Property.
The Debtor objected to Intervest's request for bankruptcy case
dismissal, saying that Intervest is asking the Court to decide on
the matter on less than two days notice to the Debtor and
effectively no notice to creditors.
Intervest is represented by Witherspoon Kelley, P.S.
Tacoma, Washington-based Chelsea Heights LLC filed for Chapter 11
bankruptcy protection on June 18, 2010 (Bankr. W.D. Wash. Case No.
10-44959). Timothy W. Dore, Esq., at Ryan Swanson & Cleveland
PLLC, assists the Company in its restructuring effort. The
Company estimated its assets and debts at $10,000,001 to
$50,000,000.
CHEMTURA CORP: Seeks to Sell Two Additives Units to Sonneborn
-------------------------------------------------------------
Chemtura Corporation and its affiliate, Chemtura Netherlands B.V.,
have asked the U.S. Bankruptcy Court for the Southern District of
New York for authority to sell their natural sodium sulfonates and
oxidized petrolatums businesses to Sonneborn Refined Products B.V.
and Sonneborn, Inc., netDockets Blog reports.
According to the report, sodium sulfonates and oxidized
petrolatums are both used as additive components in transport and
industrial lubricant applications and "provide detergency and
corrosion protection and emulsification in metalworking fluids and
antioxidants, which are widely used by customers in engine oils,
gear oils and greases." The report relates that the businesses,
which accounted for less than 1% of Chemtura's 2009 EBITDA, are
operated out of three facilities in the Netherlands and one
facility in Petrolia, Pennsylvania.
In 2005, the netDockets report recalls, the Chemtura entities and
the Sonneborn entities entered into a series of complex agreements
which, among other things, immediately transferred certain
operations related to the businesses to Sonneborn and created a
purchase option in favor of Sonneborn which would divest Chemtura
of its interests in the businesses completely in 2013.
The report says that the currently proposed transaction
essentially accelerates that divestiture plan and resolves a
$14.25 million claim asserted by Sonneborn related to remediation
and pension benefit obligations owing under the 2005 agreements.
Pursuant to the proposed sale agreement, Sonneborn will pay
$5 million cash, subject to adjustments, for Chemtura's interest
in the businesses, the report notes. Sonneborn, the report
discloses, will also waive its claims.
Chemtura is seeking approval of the transaction as a private sale
(i.e., not subject to a court-supervised competitive bidding
process), the report adds.
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)
CHENIERE ENERGY: Changes Corporate Presentation
-----------------------------------------------
Cheniere Energy Inc. said in a regulatory filing that it has
revised its corporate presentation for June 2010.
The presentation includes Cheniere's expected future cash flows on
annualized basis. The Company expects receipts of $258 million
and disbursements of $207 million, for a distributable cash of $51
million and $46 million available for unitholders.
A full-text copy of the revised presentation is available for free
at http://ResearchArchives.com/t/s?65c8
For details, please contact:
Cheniere Energy
Investor Relations
Katie Pipkin, Vice President
Tel: (713) 375-5110
E-mail: katie.pipkin@cheniere.com
Christina Cavarretta,
Manager
Tel: (713) 375-5104
E-mail: christina.cavarretta@cheniere.com
About Cheniere Energy
Cheniere Energy, Inc. (NYSE Amex: LNG) -- http://www.cheniere.com/
-- is a Houston-based energy company primarily engaged in LNG
related businesses, and owns and operates the Sabine Pass LNG
receiving terminal and Creole Trail pipeline in Louisiana.
Cheniere is pursuing related business opportunities both upstream
and downstream of the Sabine Pass LNG receiving terminal.
Cheniere is also the founder and holds a 30% limited partner
interest in another LNG receiving terminal.
At March 31, 2010, the Company had total assets of $2,736,643,000
against total current liabilities of $92,018,000; long-term debt,
net of discount of $2,694,013,000; long-term debt-related parties,
net of discount of $361,008,000; deferred revenue of $32,500,000;
other non-current liabilities of $25,793,000; and non-controlling
interest of $210,525,000; resulting in total deficit of
$468,689,000.
CHENIERE ENERGY: Marketing Unit Enters Agreement with CEI
---------------------------------------------------------
Cheniere Energy Inc. said that Cheniere Marketing, LLC has
assigned its existing terminal use agreement with Sabine Pass LNG,
L.P. to Cheniere Energy Investments, LLC, a subsidiary of Cheniere
Energy Partners, L.P., and concurrently entered into a Variable
Capacity Rights Agreement with Investments. The TUA provides 2.0
Bcf/d of send-out capacity and 6.9 Bcfe of storage capacity at the
Sabine Pass LNG receiving terminal.
Under the terms of the new VCRA, which becomes effective July 1,
2010, Marketing will continue to be responsible for monetizing the
capacity at the Sabine Pass LNG receiving terminal and will have
the right to utilize all of the services and other rights at the
Sabine Pass LNG receiving terminal available under the TUA
assigned to Investments. In consideration of these rights,
Marketing will pay Investments a fee for each cargo delivered to
the Sabine Pass facility equal to eighty percent of the expected
positive gross margin to be received with respect to each cargo.
These transactions do not impact the previously announced
arrangement between Marketing and JPMorgan LNG Co or any existing
agreements with other counterparties.
As a result of the assignment of the TUA, the funds held in the
TUA reserve account of approximately $64 million will be released
as the funds are no longer needed to make quarterly TUA payments.
These funds will be used to pay down $64 million of the
convertible senior secured loans of which $311 million is
outstanding as of June 28, 2012.
Prior to the TUA assignment, Cheniere Partners had been using cash
paid under the Marketing TUA to make distributions back to
Cheniere on the subordinated units. Subsequent to this
transaction, Cheniere will receive distributions on its
subordinated units only to the extent Cheniere Partners generates
distributable cash flows above the minimum quarterly distribution
requirement for its common unitholders and general partner. Such
distributable cash flows could be generated through new business
development or fees received from Marketing under the VCRA. As a
result of the TUA assignment, the ending of the subordination
period and conversion of the subordinated units into common units
will depend upon future business development and is no longer
expected to occur as early as the second quarter of 2012 as
previously estimated.
Additionally, Cheniere Partners and Cheniere have agreed to amend
the payment terms of the management services agreement under which
a Cheniere subsidiary provides certain management, accounting and
other related services to Cheniere Partners, in order to
subordinate the payment of the services fees to distributions to
the common unitholders and general partner and provide additional
coverage for the common unit distributions.
About Cheniere Energy
Cheniere Energy, Inc. (NYSE Amex: LNG) -- http://www.cheniere.com/
-- is a Houston-based energy company primarily engaged in LNG
related businesses, and owns and operates the Sabine Pass LNG
receiving terminal and Creole Trail pipeline in Louisiana.
Cheniere is pursuing related business opportunities both upstream
and downstream of the Sabine Pass LNG receiving terminal.
Cheniere is also the founder and holds a 30% limited partner
interest in another LNG receiving terminal.
At March 31, 2010, the Company had total assets of $2,736,643,000
against total current liabilities of $92,018,000; long-term debt,
net of discount of $2,694,013,000; long-term debt-related parties,
net of discount of $361,008,000; deferred revenue of $32,500,000;
other non-current liabilities of $25,793,000; and non-controlling
interest of $210,525,000; resulting in total deficit of
$468,689,000.
CHIRON PROPERTIES: Voluntary Chapter 11 Case Summary
----------------------------------------------------
Debtor: Chiron Properties, LLC
283-293 Second Avenue
Waltham, MA 02451
Bankruptcy Case No.: 10-17143
Chapter 11 Petition Date: June 30, 2010
Court: United States Bankruptcy Court
District of Massachusetts (Boston)
Judge: Henry J. Boroff
Debtor's Counsel: John M. McAuliffe, Esq.
McAuliffe & Associates, P.C.
430 Lexington Street
Newton, MA 02466
Tel: (617) 558-6889
E-mail: mcauliffeassociates@hotmail.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
The Debtor did not file a list of its largest unsecured creditors
together with its petition.
The petition was signed by Brian T. Huss, manager.
Debtor-affiliate that filed separate Chapter 11 petition:
Petition
Debtor Case No. Date
------ -------- ----
Vetcision, LLC 10-17122 06/30/10
CINEMARK USA: S&P Assigns 'BB-' Rating on Extended Term Loan B
--------------------------------------------------------------
On July 1, 2010, Standard & Poor's Ratings Services assigned the
extended portion of Cinemark USA Inc.'s term loan B and revolving
credit facility its 'BB-' issue-level rating (one notch higher
than the 'B+' corporate credit rating on holding company parent
Cinemark Holdings Inc.). The recovery rating on this debt is '2',
indicating S&P's expectation of substantial (70% to 90%) recovery
for lenders in the event of a payment default. The company
extended maturities of 85% of its term loan to 2016 from 2013, and
almost 50% of its revolving credit facility to 2015 from 2012.
The corporate credit rating on Cinemark Holdings is 'B+' and the
rating outlook is stable. The rating reflects S&P's expectation
that over the near term, leverage could increase as a result of
box-office declines due to difficult comparisons with 2009. S&P
also expect that discretionary cash flow will likely be consumed
by higher capital spending in 2010.
Ratings List
Cinemark Holdings Inc.
Corporate Credit Rating B+/Stable/--
New Rating
Cinemark USA Inc.
Extended portion of secd credit fac BB-
Recovery Rating 2
CLAIRE'S STORES: Bank Debt Trades at 17% Off in Secondary Market
----------------------------------------------------------------
Participations in a syndicated loan under which Claire's Stores,
Inc., is a borrower traded in the secondary market at 82.50 cents-
on-the-dollar during the week ended Friday, July 2, 2010,
according to data compiled by Loan Pricing Corp. and reported in
The Wall Street Journal. This represents a drop of 1.33
percentage points from the previous week, The Journal relates.
The Company pays 275 basis points above LIBOR to borrow under the
facility. The bank loan matures on May 29, 2014, and carries
Moody's Caa2 rating and Standard & Poor's B- rating. The debt is
one of the biggest gainers and losers among 191 widely quoted
syndicated loans with five or more bids in secondary trading for
the week ended Friday.
Claire's Stores, Inc., reported a net loss of $12,300,000 for the
three months ended May 1, 2010, from a net loss of $29,023,000 for
the three months ended May 2, 2009. Net sales were $322,077,000
for the three months ended May 1, 2010, from $293,098,000 for the
three months ended May 2, 2009.
At May 1, 2010, the Company had total assets of $2,828,167,000
against total current liabilities of $189,612,000; long-term debt
of $2,297,603,000; revolving credit facility of $194,000,000;
obligations under capital leases of $17,290,000; deferred tax
liability of $121,156,000; deferred rent expense of $22,680,000;
unfavorable lease obligations and other long-term liabilities of
$34,070,000; resulting in stockholder's deficit of $48,244,000.
At Jan. 30, 2010, the Company had total assets of $2,834,105,000
against total current liabilities of $181,512,000, long-term debt
of $2,313,378,000, revolving credit facility of $194,000,000,
deferred tax liability of $122,145,000, deferred rent expense of
$22,082,000 and unfavorable lease obligations and other long-term
liabilities of $35,630,000; resulting in stockholders' deficit of
$34,642,000.
Claire's Stores, Inc. -- http://www.clairestores.com/-- operates
as a specialty retailer of fashion accessories and jewelry for
preteens and teenagers, as well as for young adults in North
America and internationally. It offers jewelry products that
comprise costume jewelry, earrings, and ear piercing services; and
accessories, including fashion accessories, hair ornaments,
handbags, and novelty items.
Based in Pembroke Pines, Florida, Claire's Stores operates under
two brands: Claire's(R), which operates worldwide and Icing(R),
which operates only in North America. As of Jan. 31, 2009,
Claire's Stores, Inc., operated 2,969 stores in North America and
Europe. Claire's Stores, Inc., also operates through its
subsidiary, Claire's Nippon, Co., Ltd., 213 stores in Japan as a
50:50 joint venture with AEON, Co., Ltd. The Company also
franchises 198 stores in the Middle East, Turkey, Russia, South
Africa, Poland and Guatemala.
CLEAR CHANNEL: Bank Debt Trades at 23% Off in Secondary Market
--------------------------------------------------------------
Participations in a syndicated loan under which Clear Channel
Communications, Inc., is a borrower traded in the secondary market
at 76.85 cents-on-the-dollar during the week ended Friday, July 2,
2010, according to data compiled by Loan Pricing Corp. and
reported in The Wall Street Journal. This represents a drop of
1.15 percentage points from the previous week, The Journal
relates. The Company pays 365 basis points above LIBOR to borrow
under the facility. The bank loan matures on Jan. 30, 2016, and
carries Moody's Caa1 rating and Standard & Poor's CCC rating. The
debt is one of the biggest gainers and losers among 191 widely
quoted syndicated loans with five or more bids in secondary
trading for the week ended Friday.
Clear Channel Communications, Inc. -- http://www.clearchannel.com/
-- is a diversified media company with three primary business
segments: radio broadcasting, outdoor advertising and live
entertainment. Clear Channel Communications is the operating
subsidiary of San Antonio, Texas-based CC Media Holdings, Inc.
CMP SUSQUEHANNA: Bank Debt Trades at 15% Off in Secondary Market
----------------------------------------------------------------
Participations in a syndicated loan under which CMP Susquehanna
Corporation is a borrower traded in the secondary market at 85.00
cents-on-the-dollar during the week ended Friday, July 2, 2010,
according to data compiled by Loan Pricing Corp. and reported in
The Wall Street Journal. This represents an increase of 0.70
percentage points from the previous week, The Journal relates.
The Company pays 200 basis points above LIBOR to borrow under the
facility. The bank loan matures on May 6, 2013, and carries
Moody's Caa1 rating and Standard & Poor's B- rating. The debt is
one of the biggest gainers and losers among 191 widely quoted
syndicated loans with five or more bids in secondary trading for
the week ended Friday.
The Troubled Company Reporter said on April 30, 2010, Moody's
Investors Service placed its ratings for CMP Susquehanna
Corporation under review for possible upgrade, including the
company's Caa3 Corporate Family Rating and Caa3 Probability-of-
Default Rating. The review is prompted by the expectation that
performance will improve in CMP's major markets in 2010 and
combined with restructuring activities completed in 2009, should
result in improved cash flow and reduced leverage. Covenants
however remain tight and leverage levels will likely remain very
high. The review will consider the outlook for the business, its
ability to stay within its financial covenants and sustainability
of its capital structure.
The last rating action on CMP occurred on April 7, 2009, when
Moody's assigned a limited default to CMP's Probability-of-Default
rating following its debt exchange.
CMP Susquehanna Corp., headquartered in Atlanta, Georgia, is a
wholly owned subsidiary of Cumulus Media Partners LLC, the private
partnership formed by Cumulus Media, Inc. and a consortium of
private equity sponsors. CMP Susquehanna Corp. owns and operates
27 radio stations in nine markets in the U.S. The company's
reported revenues of $169 million for the year ended December 31,
2009.
CNO FINANCIAL: Announces Financial Settlement of Regulatory Matter
------------------------------------------------------------------
On June 30, 2010, CNO Financial Group, Inc. announced that its
wholly owned subsidiary, Conseco Life Insurance Company, finalized
a multi-state settlement agreement that requires the establishment
of a $10 million fund for certain owners of its Lifetrend life
insurance products and payment of a $1 million assessment to
participating jurisdictions.
As of June 30, 2010, 37 jurisdictions have signed the agreement.
As previously disclosed, CNO accrued for the financial impact of
the settlement in its consolidated financial statements for year-
end 2009. Therefore, the finalization of this multi-state
settlement agreement will not result in an additional charge to
the Company's second quarter 2010 consolidated results of
operations.
About CNO Financial
Headquartered in Carmel, Indiana, CNO Financial Group, Inc. (NYSE:
CNO) -- http://CNOinc.com/-- is a holding company for a group of
insurance companies operating throughout the United States. Its
principal include: Bankers Life and Casualty Company, Colonial
Penn Life Insurance Company and Washington National Insurance
Company.
At March 31, 2010, the Company had $30.785 billion in assets,
$27.065 billion of liabilities, and $3.720 billion of
shareholders' equity.
* * *
CNO Financial Group, Inc., carries Moody's Investors Service's
"Caa1" senior unsecured convertible debentures with a stable
outlook.
COLETO CREEK: Bank Debt Trades at 11% Off in Secondary Market
-------------------------------------------------------------
Participations in a syndicated loan under which Coleto Creek Power
L.P. is a borrower traded in the secondary market at 89.20 cents-
on-the-dollar during the week ended Friday, July 2, 2010,
according to data compiled by Loan Pricing Corp. and reported in
The Wall Street Journal. This represents a drop of 1.30
percentage points from the previous week, The Journal relates.
The Company pays 275 basis points above LIBOR to borrow under the
facility. The bank loan matures on June 28, 2013, and carries
Moody's B1 rating and Standard & Poor's B+ rating. The debt is
one of the biggest gainers and losers among 191 widely quoted
syndicated loans with five or more bids in secondary trading for
the week ended Friday.
As reported by the Troubled Company Reporter on June 29, 2009,
Standard & Poor's lowered its issue rating on Coleto Creek Power
L.P.'s $735 million senior secured first-lien term loan due 2013,
its $170 million synthetic letter of credit facility maturing
2013, and its $60 million working capital revolving facility
maturing 2011 to 'B+' from 'BB-'. S&P also revised the recovery
rating to '2' from '1', indicating S&P's expectation that lenders
would receive substantial (70% to 90%) recovery of principal in
the event of a payment default. (Coleto Creek has a $200 million
senior secured second-lien term loan due 2013 that S&P does not
rate.)
"The rating action follows the project's weak financial
performance over the past couple of years caused by weakened
market conditions, construction delays with its pollution-control
equipment, and other forced outages," said Standard & Poor's
credit analyst Swami Venkataraman.
Coleto Creek is an indirect, wholly owned partnership subsidiary
of International Power PLC (IP; BB-/Stable/--) and owns the 632
megawatt coal-fired Coleto Creek plant in the Electric Reliability
Council of Texas (ERCOT) region.
COMMUNITY HEALTH: Bank Debt Trades at 7% Off in Secondary Market
----------------------------------------------------------------
Participations in a syndicated loan under which Community Health
Systems, Inc., is a borrower traded in the secondary market at
93.18 cents-on-the-dollar during the week ended Friday, July 2,
2010, according to data compiled by Loan Pricing Corp. and
reported in The Wall Street Journal. This represents a drop of
0.83 percentage points from the previous week, The Journal
relates. The Company pays 225 basis points above LIBOR to borrow
under the facility. The bank loan matures on May 1, 2014, and
carries Moody's Ba3 rating and Standard & Poor's BB rating. The
debt is one of the biggest gainers and losers among 191 widely
quoted syndicated loans with five or more bids in secondary
trading for the week ended Friday.
Based in Franklin, Tennessee, Community Health Systems, Inc. --
http://www.chs.net/-- is the largest publicly traded operator of
hospitals in the United States in terms of number of facilities
and net operating revenues. The company provides healthcare
services through these hospitals that it owns and operates in non-
urban and selected urban markets throughout the United States.
The company also owns and operates home health agencies, including
four home health agencies located in markets where it does not
operate a hospital. Through its wholly owned subsidiary, Quorum
Health Resources, LLC, the company provides management and
consulting services to non-affiliated general acute care hospitals
located throughout the United States.
CORD BLOOD: CEO Schissler Sold 25.5 Million Shares
--------------------------------------------------
Matthew Lawrence Schissler, chairman and CEO of Cord Blood
America, Inc., sold 25,528,408 Company shares between June 1 and
16, 2010. The shares were sold for $0.00605 to $0.00731. He may
be deemed to beneficially own 73,976,225 shares after the deal.
About Cord Blood America
Based in Las Vegas, Nevada, Cord Blood America, Inc., is primarily
a holding company whose subsidiaries include Cord Partners, Inc.,
CorCell Co. Inc., CorCell Ltd.; CBA Professional Services, Inc.
D/B/A BodyCells, Inc.; CBA Properties, Inc.; and Career Channel
Inc, D/B/A Rainmakers International. Cord specializes in
providing private cord blood stem cell preservation services to
families. BodyCells is a developmental stage company and intends
to be in the business of collecting, processing and preserving
peripheral blood and adipose tissue stem cells allowing
individuals to privately preserve their stem cells for potential
future use in stem cell therapy. Properties was formed to hold
the corporate trademarks and other intellectual property of CBAI.
Rain specializes in creating direct response television and radio
advertising campaigns, including media placement and commercial
production.
The Company's balance sheet at March 31, 2010, revealed
$5,754,702 in total assets and $6,709,374 in total liabilities,
all current, for a $954,672 total stockholders' deficit.
In its March 30, 2010 report, Rose, Snyder & Jacobs, in Encino,
California, said the Company's recurring operating losses,
continued cash burn, and insufficient working capital and
accumulated deficit at December 31, 2009, raise substantial doubt
about the Company's ability to continue as a going concern.
CORUS BANKSHARES: Files Schedules of Assets and Liabilities
-----------------------------------------------------------
Corus Bankshares, Inc., filed with the U.S. Bankruptcy Court for
the Northern District of Illinois its schedules of assets and
liabilities, disclosing:
Name of Schedule Assets Liabilities
---------------- ----------- -----------
A. Real Property $0
B. Personal Property $312,712,141
C. Property Claimed as
Exempt
D. Creditors Holding
Secured Claims $0
E. Creditors Holding
Unsecured Priority
Claims $0*
F. Creditors Holding
Unsecured Non-priority
Claims $416,595,228*
----------- -----------
TOTAL $312,712,141 $416,595,228*
* Plus Unknown amount
About Corus Bankshares
Chicago, Illinois-based 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.
The Company filed for Chapter 11 bankruptcy protection on June 15,
2010 (Bankr. N.D. Ill. Case No. 10-26881). David R. Seligman,
Esq., at Kirkland & Ellis LLP, assists the Company in its
restructuring effort. Kinetic Advisors is the Company's
restructuring advisor. Plante & Moran is the Company's auditor
and accountant. 4
As of June 15, 2010, the Company listed $314,145,828 in assets and
$532,938,418 in liabilities.
C.R. PEELE: Case Summary & 20 Largest Unsecured Creditors
---------------------------------------------------------
Debtor: C.R. Peele Construction Co., Inc.
462 Holly Shelter Road
Jacksonville, NC 28540
Bankruptcy Case No.: 10-05232
Chapter 11 Petition Date: June 30, 2010
Court: United States Bankruptcy Court
Eastern District of North Carolina (Wilson)
Debtor's Counsel: George M. Oliver, Esq.
Oliver & Friesen, PLLC
P.O. Box 1548
New Bern, NC 28563
Tel: (252) 633-1930
Fax: (252) 633-1950
E-mail: efile@oliverandfriesen.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
A list of the Company's 20 largest unsecured creditors
filed together with the petition is available for free
at http://bankrupt.com/misc/nceb10-05232.pdf
The petition was signed by Charles R. Peele, president.
DBSI INVESTMENTS: Involuntary Chapter 11 Case Summary
----------------------------------------------------
Alleged Debtor: DBSI Investments Limited Partnership
fka DBSI Properties Company Limited P
12426 West Explorer Drive
Boise, ID 83713
Bankruptcy Case No.: 10-12122
Involuntary Chapter 11 Petition Date: June 30, 2010
Court: U.S. Bankruptcy Court
District of Delaware (Delaware)
Debtor's Counsel: Pro Se
Petitioners' Counsel: William R. Firth, III, Esq.
Gibbons P.C.
1000 N. West Street, Suite 1200
Wilmington, DE 19801-1058
Tel: (302) 295-4875
Creditor that signed the Chapter 11 petition:
Petitioners Nature of Claim Claim Amount
----------- --------------- ------------
DBSI Inc. -- $0
12426 West Explorer Drive
Boise, ID 83713
DEAN FOODS: S&P Assigns 'BB' Rating on $1.275 Bil. Facility
-----------------------------------------------------------
Standard & Poor's Ratings Services said that it has assigned issue
ratings to Dallas, Texas-based Dean Foods Co.'s term loans and
credit facilities following Dean Food's recently completed amend-
and-extend transaction with the holders of its senior secured
credit facility. This an extension of maturities for portions of
its revolving credit facility, term loan A and term loan B,
modifications of term loan amortization schedules, and a loosening
of its maximum leverage ratio financial covenant. In exchange,
extending lenders will receive fees and loan pricing increases.
S&P assigned 'BB' (one notch higher than the corporate credit
rating on Dean Foods) issue level ratings to Dean Food's
$1.275 billion extended revolving credit facility due 2014,
$1.102 billion term loan A-1 due 2014, $492 million term loan B-1
due 2016, and $561 million term loan B-2 due 2017. S&P assigned a
'2' recovery rating on all these issues, which indicates S&P's
expectation of substantial (70% to 90%) recovery for lenders in
the event of a default.
The ratings on Dean Foods Co. and its subsidiary reflect its
aggressive financial profile and high debt leverage. S&P is
concerned about recent retailer milk price discounting, and the
impact that may have on the company's branded milk portfolio, in
which volume declined in the first quarter. Dean benefits from
its position as the leading national dairy company in the U.S.,
with close to a 40% market share, with a portfolio of national,
regional, local, and private-label brands also with solid regional
market positions.
Ratings List
Dean Foods Co.
Corporate credit rating BB-/Negative/--
Assigned Ratings
$1.275 bil rev credit fac due 2014 BB
Recovery rating 2
$1.102 bil term loan A-1 due 2014 BB
Recovery rating 2
$492 mil term loan B-1 due 2016 BB
Recovery rating 2
$561 million term loan B-2 due 2017 BB
Recovery rating 2
DEAN FOODS: Bank Debt Trades at 7% Off in Secondary Market
----------------------------------------------------------
Participations in a syndicated loan under which Dean Foods Company
is a borrower traded in the secondary market at 92.75 cents-on-
the-dollar during the week ended Friday, July 2, 2010, according
to data compiled by Loan Pricing Corp. and reported in The Wall
Street Journal. This represents a drop of 0.83 percentage points
from the previous week, The Journal relates. The Company pays 175
basis points above LIBOR to borrow under the facility. The bank
loan matures on March 22, 2014, and carries Moody's Ba3 rating and
Standard & Poor's BB rating. The debt is one of the biggest
gainers and losers among 191 widely quoted syndicated loans with
five or more bids in secondary trading for the week ended Friday.
As reported by the Troubled Company Reporter on May 20, 2010,
Moody's lowered the speculative grade liquidity rating for Dean
Foods to SGL-3 from SGL-2. The company's corporate family rating
remains Ba3 with a stable outlook. The SGL rating downgrade
reflects the very weak first quarter which saw a 61% drop in cash
from continuing operations (from $185 million in 2009 to
$71 million in 2010) and an increase in leverage to 4.43 times (as
defined by credit agreements) as compared with 4.16 times at the
end of the year. Moody's believes that there may be little or no
cushion under the bank leverage covenant under the existing
facilities by year end 2010 when it steps down from 5.0 times to
4.5 times.
On May 19, The TCR reported that Standard & Poor's revised its
outlook on Dean Foods Company and its wholly owned subsidiary Dean
Holding Co. to negative from stable. "At the same time, we
affirmed the ratings on the company, including the 'BB-' corporate
credit rating. Dean Foods had about $4.2 billion of funded debt
outstanding as of March 31, 2010."
"The outlook revision to negative reflects our concerns about the
company's near-term operating performance and the possibility for
the company's leverage covenant to become very tight by fiscal
year end 2010," said Standard & Poor's credit analyst Christopher
Johnson.
Dean Foods Company is the largest processor and distributor of
milk and various other dairy products in the United States, with
dairy operations accounting for around 79% of its net sales in
FY2008. The company also markets and sells a variety of branded
dairy and dairy-related products including, Silk soymilk and
cultured soy products, Horizon Organic dairy products,
International Delight coffee creamers and LAND O'LAKES creamers
and fluid dairy products. Headquartered in Dallas, Texas, Dean
Foods had sales in the last twelve months ending March 31, 2009,
of approximately $12.1 billion.
DELTA AIR: Drops Plan to Swap Airport Slots with USAir
------------------------------------------------------
Doug Cameron at Dow Jones Newswires reports that Delta Air Lines
Inc. and US Airways Group Inc. said Friday they are dropping plans
to swap landing rights at two of the country's busiest airports
following a demand by regulators that they cede some slots to
rivals. The airlines said they would seek a judicial review of
the requirement from regulators that they surrender takeoff and
landing slots at New York's LaGuardia Airport and Ronald Reagan
National in Washington, D.C., through a blind auction.
Dow Jones relates Delta and US Airways had sought to counter
opposition to the plan -- mainly from Southwest Airlines Co. -- by
offering to transfer some slots to JetBlue Airways Corp., AirTran
Holdings Inc., Spirit Airlines Inc. and Canada's WestJet Airlines
Ltd.
According to Dow Jones, the airlines said in a letter to the
Department of Transportation and the Federal Aviation
Administration that they would proceed with the deal if the
conditions were dropped.
About Delta Air Lines
Atlanta, Georgia-based Delta Air Lines (NYSE: DAL) --
http://www.delta.com/or http://www.nwa.com/-- serves more than
160 million customers each year. Delta and the Delta Connection
carriers offer service to 367 destinations in 66 countries on six
continents. Delta employs more than 70,000 employees worldwide
and operates a mainline fleet of nearly 800 aircraft. A founding
member of the SkyTeam global alliance, Delta participates in the
industry's trans-Atlantic joint venture with Air France KLM.
Including its worldwide alliance partners, Delta offers customers
more than 16,000 daily flights, with hubs in Amsterdam, Atlanta,
Cincinnati, Detroit, Memphis, Minneapolis-St. Paul, New York-JFK,
Paris-Charles de Gaulle, Salt Lake City and Tokyo-Narita. The
airline's service includes the SkyMiles frequent flier program,
the world's largest airline loyalty program; the BusinessElite
service; and more than 50 Delta Sky Clubs in airports worldwide.
Delta became the world's largest airline following merger with
Northwest Airlines in 2008.
Northwest and 12 affiliates filed for Chapter 11 protection on
September 14, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-17930).
On May 21, 2007, the Court confirmed the Northwest Debtors'
amended plan. That amended plan took effect May 31, 2007.
Delta and 18 affiliates filed for Chapter 11 protection on
September 14, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-17923).
Marshall S. Huebner, Esq., at Davis Polk & Wardwell, represented
the Delta Debtors in their restructuring efforts. On April 25,
2007, the Court confirmed the Delta Debtors' plan. That plan
became effective on April 30, 2007.
At December 31, 2009, Delta had total assets of $43,539,000,000
against total current liabilities of $9,797,000,000 and total
noncurrent liabilities of $33,497,000,000, resulting in
stockholders' equity of $245,000,000. At end-2008, Delta had
stockholders' equity of $874,000,000. The December 31, 2009
balance sheet showed strained liquidity: Delta had total current
assets of $7,741,000,000 against total current liabilities of
$9,797,000,000.
(Bankruptcy Creditors Service Inc. publishes Delta Air Lines
Bankruptcy News, http://bankrupt.com/newsstand/or 215/945-7000).
* * *
Delta Air Lines and Northwest Airlines carry a 'B/Negative/--'
corporate ratings from Standard & Poor's. They also continue to
carry 'B2' corporate family ratings from Moody's and "B-" LT
Issuer Default rating from Fitch.
About US Airways
US Airways -- http://www.usairways.com/-- along with US Airways
Shuttle and US Airways Express, operates more than 3,000 flights
per day and serves more than 190 communities in the U.S., Canada,
Mexico, Europe, the Middle East, the Caribbean, Central and South
America.
Under a Chapter 11 plan declared effective on March 31, 2003,
USAir emerged from bankruptcy with the Retirement Systems of
Alabama taking a 40% equity stake in the deleveraged carrier in
exchange for $240 million infusion of new capital.
US Airways and its subsidiaries filed another Chapter 11 petition
on September 12, 2004 (Bankr. E.D. Va. Case No. 04-13820). Brian
P. Leitch, Esq., Daniel M. Lewis, Esq., and Michael J. Canning,
Esq., at Arnold & Porter LLP, and Lawrence E. Rifken, Esq., and
Douglas M. Foley, Esq., at McGuireWoods LLP, represented the
Debtors in their restructuring efforts. The USAir II bankruptcy
plan became effective on September 27, 2005. The Debtors
completed their merger with America West on the same date. (US
Airways Bankruptcy News; Bankruptcy Creditors' Service Inc.,
http://bankrupt.com/newsstand/or 215/945-7000).
* * *
As of December 31, 2009, US Airways had total assets of
$7,454,000,000, including $2,331,000,000 in total current assets,
against total current liabilities of $2,789,000,000 and total
noncurrent liabilities and deferred credits of $5,020,000,000,
resulting in $355,000,000 stockholders' deficit.
US Airways Group carries Moody's "Caa1" Long-Term rating, LT Corp.
family rating and probability of default rating. Outlook is
negative.
US Airways Group carries Standard & Poor's "B-" LT Foreign Issuer
Credit rating and LT Local Issuer credit rating. Outlook is also
negative.
US Airways Group carries Fitch's "CCC" LT Issuer default rating
and "C" Senior unsecured debt rating. Outlook is also negative.
DICON TECHNOLOGIES: Court Stays Order Appointing Ch. 11 Trustee
---------------------------------------------------------------
The Hon. Lamar W. Davis, Jr. of the U.S. Bankruptcy Court for the
Southern District of Georgia stayed, at the behest of Dicon
Technologies LLC and SpongeTech Delivery Systems Inc., his order
that granted the petitioning creditors' request to appoint a
Chapter 11 trustee for the Debtor.
After filing an involuntary bankruptcy petition against the
Debtor, the Petitioning Creditors filed on June 19, 2010, an
emergency motion with the Court to appoint a Chapter 11 Trustee.
On June 21, 2010, an involuntary summons was issued upon the
Debtor. Service of the Summons upon the Debtor triggers the 21-
day period to respond to the involuntary petition. As of the date
hereof, there is still ample time to respond to the involuntary
petition, the Debtor and SpongeTech state.
The Debtor and SpongeTech claim the during the trustee motion
hearing, the local counsel and New York counsel were prepared
enough only to ask limited questions and, given the time
constraints, weren't able to present rebuttal witness, giving the
Court only one side of the story, which contained many inaccurate
or unsupported allegations. According to the Debtor and
SpongeTech, they were denied their due process of right of
presenting evidence to the Court.
After the trustee motion hearing, the Court authorized the
appointment of a Chapter 11 trustee.
The Debtor and SpongeTech say that had they had the opportunity to
present their own witnesses, the Court would have learned that
SpongeTech never misused the Debtor's funds, and that SpongeTech
and the Debtor were considerably integrated.
On June 18, 2010, Precision Custom Coatings, LLC, Development
Authority of Bryan County, and Interfoam, Inc., filed a petition
to put Black Creek, Georgia-based Dicon Technologies, LLC, into
involuntary Chapter 11 (Case S.D. Ga. No. 10-41275).
DR HORTON: Fitch Affirms Issuer Default Rating at 'BB'
------------------------------------------------------
Fitch Ratings has affirmed D.R. Horton's ratings:
-- Issuer Default Rating at 'BB';
-- Senior unsecured debt at 'BB';
-- Senior unsecured convertible notes at 'BB'.
The Rating Outlook has been revised to Stable from Negative.
The ratings affirmation and the Outlook revision to Stable from
Negative reflect the company's strong liquidity position, improved
operating results and moderately stronger prospects for the
housing sector this year. The ratings reflect DHI's successful
execution of its business model, steady capital structure,
geographic and product line diversity, and the still challenging
U.S. housing environment.
The ratings also manifest DHI's historically aggressive, yet
controlled growth strategy and its relatively heavy speculative
building activity (which had lessened late in the last up-cycle).
DHI has historically built a significant number of its homes on a
speculative basis (i.e. begun construction before an order was in
hand). DHI successfully executed this strategy in the past,
including during the severe housing downturn. As of March 31,
2010, DHI's inventory of homes totaled 13,900, of which 7,300
homes were speculative (53% of total) and 2,900 of these 'spec'
homes were completed. Admittedly, this strategy has worked to
DHI's advantage during the past few quarters as the company had
inventory available for sale to homebuyers taking advantage of the
federal housing tax credit, which expired on April 30, 2010, and
required homes to be delivered by June 30, 2010. Home deliveries
are up 28% during the first half of its fiscal 2010 (ended
March 31, 2010). Nevertheless, Fitch was more comfortable with
the more moderate 'spec' targets of 2004 and 2005.
DHI ended the March 2010 quarter with $1.6 billion of unrestricted
cash and $198.7 million of marketable securities. In November
2009, the company's board of directors authorized the repurchase
of up to $500 million of the company's debt securities, effective
Dec. 1, 2009. At March 31, 2010, $154 million of the
authorization was outstanding. In April 2010, the board increased
the debt repurchase authorization to $500 million effective from
April 29, 2010 to Nov. 30, 2010. Through the first half of fiscal
2010, DHI has redeemed/repurchased approximately $538.5 million of
debt. The company's remaining debt maturities are well-laddered,
with no more than 10% of its total debt maturing in any one year
during the next three fiscal years.
The company terminated its revolving credit facility in May 2009
and subsequently entered into various letters of credit agreements
that are secured by cash deposits. At March 31, 2010, letters of
credit totaling $47.6 million were outstanding under these
agreements. Consistent with Fitch's comment on homebuilders'
termination of revolving credit facilities, in the absence of a
revolving credit line, a consistently higher level of cash and
equivalents than was typical should be maintained on the balance
sheet (about $300-$500 million), especially in these still
uncertain times.
At the end of the March 2010 quarter, the company controlled
110,500 lots, 80.1% of which are owned and the balance controlled
through options. (The options share of total lots controlled is
down sharply over the past three years as the company has written
off substantial numbers of options.) DHI maintains a 5.9-year
supply of controlled lots (based on last 12 months deliveries) and
a 4.7-year supply of owned lots. Fitch expects the company to
rebuild its land position as it increases its community count,
although the primary focus will be optioning (or in some cases,
purchasing for cash) finished lots wherein the company can get a
faster return of its capital.
DHI generated $207.8 million of cash flow from operations during
its 2010 second quarter, which included $352.5 million of tax
refunds received during the quarter. On an LTM basis, cash flow
from operations was $590.4 million, including $465.4 million of
tax refunds. For all of fiscal 2010, Fitch expects DHI to be cash
flow positive, excluding the tax refunds. The company has a
$100 million authorization under a share repurchase program that
expires on Nov. 30, 2010. DHI has not repurchased any of its
stock since fiscal 2006.
Housing apparently bottomed during 2009, and a so far anemic
recovery has begun. During the next 12-15 months off the bottom,
the recovery may appear jaw-toothed as substantial foreclosures
now in the pipeline present as distressed sales and as meaningful
new foreclosures arise from Alt-A and option ARM resets. High
unemployment rates and the tightening of certain Federal Housing
Administration loan standards will be notable headwinds early in
the up-cycle. The continuation and expansion of the scope of the
national housing credit boosted sales in spring of this year,
pulling demand forward from future months. And the federal
government's continuing efforts to modify foreclosures may finally
show some success in 2010.
Future ratings and Outlooks will be influenced by broad housing
market trends as well as company specific activity, such as trends
in land and development spending, general inventory levels,
speculative inventory activity (including the impact of high
cancellation rates on such activity), gross and net new order
activity, debt levels and especially free cash flow trends and
uses, and the company's cash position.
DYNEGY HOLDINGS: Moody's Downgrades Corp. Family Rating to 'B3'
---------------------------------------------------------------
Moody's Investors Service downgraded the Corporate Family Rating
and Probability of Default Rating of Dynegy Holdings, Inc., to B3
from B2, and downgraded the speculative grade liquidity rating to
SGL-4 from SGL-3. Concurrently, Moody's confirmed the B3 rating
on DHI's senior unsecured notes. The rating action concludes the
review for possible downgrade that commenced on April 6, 2010.
The rating outlook for DHI and its parent, Dynegy Inc. is
negative.
The downgrade reflects the very weak financial metrics anticipated
for 2010 based upon the company's 2010 EBITDA guidance (about 30%
lower than 2009 actuals) due principally to reduced power margins.
During 2010, Moody's calculate that the company's cash flow to
debt will be less than 5%, its cash flow coverage of interest will
be around 1.5x, and the company will generate substantial negative
free cash flow. Moreover, Moody's believe that these credit
metrics are likely to continue into 2011 based upon market price
expectations and the size of the company's capital expenditure
program. While the company will complete the majority of the
critical environmental capital spend by the end of 2011 and the
2009 application of certain asset sales proceeds towards its 2011
and 2012 debt maturities has lowered near-term refinancing risk,
the projected credit metrics for 2010 and 2011 appear to be quite
weak and more appropriately positioned towards the low "B" ratings
category for unregulated power companies.
The downgrade to SGL-4 from SGL-3 reflects Moody's concern about
DHI's internal sources of liquidity given the amount of negative
free cash flow expected to be generated by the company in 2010 and
2011 as it completes the required environmental capital spend on
its Midwestern generation fleet. Moody's expect the company to
become more reliant during the remainder of 2010 and into 2011 on
borrowings under its secured revolving credit facility to fund its
negative free cash. Moody's understand that based upon the
secured debt to adjusted EBITDA ratio in the DHI revolver,
availability under the revolver might decline over the next twelve
months. That said, Moody's believe that DHI should have adequate
liquidity over the next twelve months to fund the negative cash
flow so long as the availability of the remaining revolver is
maintained. Of particular concern to Moody's is the company's
ability to maintain compliance with the EBITDA to interest
covenant in the DHI revolver given that the covenant test
gradually increases over time during the next twelve to fifteen
months. While Moody's believe the company should be able to
satisfy this covenant in the near-term, compliance with this
covenant may become problematic due to the combination of lower
EBITDA and tighter defined covenant limitations in the documents.
Asset sales, which had been a source of liquidity in each of the
past several years, are not anticipated by Moody's in any
meaningful way.
Consequently, an extension of DHI's bank facilities represents a
critically important future milestone for the company. Moody's
observe that the company's debt maturity profile has been enhanced
following the sale of natural-gas fired assets to LS Power, as
debt maturities in 2011 and 2012 were collectively reduced by
$830 million to $81 million and $89 million, respectively, thereby
providing the company with additional financial flexibility until
the next material bond maturity in 2015.
The rating confirmation of the company's senior unsecured notes at
B3 reflects the substantial amount of senior unsecured debt at DHI
relative to DHI's total capital structure. Including the Roseton-
Danskammer lease, which carries an unsecured guarantee from DHI
(downgraded to B3 from B2), Moody's calculates that at least 75%
of the company's total debt represents DHI senior unsecured
obligations, suggesting that the senior unsecured instrument
rating should be closely aligned with the company's B3 CFR.
Given this proportion of unsecured debt in DHI's capital structure
and the asset valuation that exists at DHI as an owner of long-
life, core infrastructure assets, Moody's believes that the
company should have ample collateral coverage to secure an
extension of its existing bank arrangements at or prior to the
April 2012 expiry date. This is especially true given the
environmental capital expenditures being invested at the company's
Midwest fleet, the relative importance of certain of its
California assets, and the young age of some of the remaining
fleet. Moreover, Moody's observe that over the next eighteen
months, DHI's negative free cash flow should gradually decline as
the environmental capital investment for the company's Midwest
generation fleet is expected to be largely completed by the end of
2011.
The negative rating outlook for DHI and Dynegy reflects in large
part the softness in power prices that is likely to continue
through 2011, keeping credit metrics depressed. This view factors
in the heavy reliance that DHI and Dynegy's cash flows and
revenues have on the Midwest region, an area where wholesale power
prices have been particularly negatively impacted by the
recession. The negative rating outlook also factors in the
relative importance of maintaining access to and extending the
terms of the company's secured revolver in light of a somewhat
more capital constrained credit environment.
The last rating action on DHI occurred on April 6, 2010, when the
ratings were placed under review for possible downgrade.
Loss given default point estimates for DHI were determined based
upon Moody's Loss Given Default methodology.
Downgrades:
Issuer: Dynegy Capital Trust II
-- Preferred Stock Shelf, Downgraded to (P)Caa2 from (P)Caa1
Issuer: Dynegy Capital Trust III
-- Preferred Stock Shelf, Downgraded to (P)Caa2 from (P)Caa1
Issuer: Dynegy Holdings Inc.
-- Probability of Default Rating, Downgraded to B3 from B2
-- Speculative Grade Liquidity Rating, Downgraded to SGL-4 from
SGL-3
-- Corporate Family Rating, Downgraded to B3 from B2
-- Multiple Seniority Shelf, Downgraded to (P)Caa1, (P)Caa2 from
(P)B3, (P)Caa1
-- Senior Secured Bank Credit Facility, Downgraded to Ba3 from
Ba2
Issuer: Dynegy Inc.
-- Multiple Seniority Shelf, Downgraded to (P)Caa2, (P)Caa2,
(P)Caa2 from (P)Caa1, (P)Caa1, (P)Caa1
Issuer: NGC Corporation Capital Trust I
-- Preferred Stock Preferred Stock, Downgraded to Caa2 from Caa1
Issuer: Roseton-Danskammer 2001
-- Senior Secured Pass-Through, Downgraded to a range of B3,
LGD4, 58% from a range of B2, LGD3, 46%
Upgrades:
Issuer: Dynegy Holdings Inc.
-- Multiple Seniority Shelf, Upgraded to LGD4, 58% from LGD4,
59%
-- Senior Secured Bank Credit Facility, Upgraded to LGD1, 05%
from LGD1, 06%
-- Senior Unsecured Regular Bond/Debenture, Upgraded to LGD4,
58% from LGD4, 59%
Outlook Actions:
Issuer: Dynegy Capital Trust II
-- Outlook, Changed To Negative From Rating Under Review
Issuer: Dynegy Capital Trust III
-- Outlook, Changed To Negative From Rating Under Review
Issuer: Dynegy Holdings Inc.
-- Outlook, Changed To Negative From Rating Under Review
Issuer: Dynegy Inc.
-- Outlook, Changed To Negative From Rating Under Review
Issuer: NGC Corporation Capital Trust I
-- Outlook, Changed To Negative From Rating Under Review
Issuer: Roseton-Danskammer 2001
-- Outlook, Changed To Negative From Rating Under Review
Confirmations:
Issuer: Dynegy Holdings Inc.
-- Senior Unsecured Regular Bond/Debenture, Confirmed at B3
Headquartered in Houston, Texas, DHI is an independent power
producer that owns a portfolio of more than 12,000 MW electric
generating assets. DHI is wholly-owned by Dynegy, Inc.
EDIETS.COM INC: Gets Notice on NASDAQ's Minimum Bid Price Rule
--------------------------------------------------------------
eDiets.com, Inc., disclosed that on June 28, 2010, it received
notice from The Nasdaq Stock Market that the minimum bid price of
the Company's common stock closed below $1.00 per share for 30
consecutive business days and that the Company was therefore not
in compliance with Nasdaq's listing rules (Rule 5550(a)(2)).
In accordance with the rules, the Company has 180 calendar days,
or until December 27, 2010, to regain compliance. If at any time
before that date the bid price of the Company's common stock
closes at $1.00 per share or more for at least 10 consecutive
business days, Nasdaq will provide written notification that the
Company complies with the rules (Rule 5810(c)(3)(A)).
If compliance is not achieved by December 27, 2010, the Company
will be eligible for an additional compliance period of 180 days
provided that it meets The Nasdaq Capital Market initial listing
criteria (Rule 5505), with the exception of the bid price
requirement. If the Company is not eligible for an additional
compliance period, Nasdaq will provide written notification that
the Company's securities will be delisted. At that time, the
Company may appeal Nasdaq's determination that the Company's
common stock will be delisted from The Nasdaq Capital Market.
About eDiets
eDiets.com, Inc. is a leading provider of personalized nutrition,
fitness and weight-loss programs. eDiets currently features its
award-winning, fresh-prepared diet meal delivery service as one of
the more than 20 popular diet plans sold directly to members on
its flagship site, http://www.eDiets.com. The company also
provides a broad range of customized wellness and weight
management solutions for Fortune 500 clients. eDiets.com's unique
infrastructure offers businesses, as well as individuals, an end-
to-end solution strategically tailored to meet its customers'
specific goals of achieving a healthy lifestyle.
EDISON MISSION: Fitch Affirms Issuer Default Ratings at 'B'
-----------------------------------------------------------
Fitch Ratings has affirmed Edison Mission Energy and Midwest
Generation LLC's long-term Issuer Default Rating, recovery and
individual securities ratings, as indicated below. The Rating
Outlook for both EME and MWG is Negative. Fitch has also affirmed
EME and MWG's short-term IDR at 'B'. More than $4 billion of
long-term debt is affected by the rating actions.
Edison Mission Energy
-- Long-term IDR at 'B';
-- Senior unsecured debt at 'B-/RR5'.
Midwest Generation
-- Long-term IDR at 'B';
-- Secured working capital facility at 'BB/RR1'.
Fitch has also issued a release detailing rating actions taken
EME's ultimate parent, Edison International (IDR 'BBB'; Outlook
Stable by Fitch) and Southern California Edison Company (IDR 'A-';
Outlook Stable by Fitch).
The ratings of EME and MWG are based on a stand alone credit
analysis and assume no future support from ultimate parent EIX.
The ratings and Negative Outlook for EME and MWG reflect weak
credit metrics due to sharply lower power prices (resulting from
higher non-traditional gas supply, lower cyclical demand for power
and gas and high capacity reserve margins) and contracting dark
spreads. In addition to EME's $1 billion of cash and cash
equivalents, identifiable cash from U.S. Treasury grants,
distributions to EME from renewable project financings and
operating cash flows will likely provide the wherewithal for the
company to remain current on its obligations and comply with its
financial covenants through 2012 at least, supporting the rating
affirmation.
The Negative Outlook reflects Fitch's view that lower-than-
expected wholesale power prices during the forecast period would
result in future credit rating downgrades. Fitch assumes, based
on consultant data, modestly higher 2013 - 2014 wholesale power
prices. The ratings and outlook also consider environmental rules
regarding sulfur dioxide, nitrogen oxide and mercury and
anticipated greenhouse gas legislation, which pose significant
long-term challenges for EME, in Fitch's opinion. However, an
extended cycle of low power prices coupled with meaningfully
higher environmental compliance costs, consistent with Fitch's
outlook for the U.S. wholesale power market, could render EME
insolvent in the longer term. Moreover, an extended period of
power prices below those in Fitch's outlook would, in Fitch's
opinion, exacerbate EME's financial distress and accelerate a
potential insolvency.
Significantly higher domestic natural gas supply from non-
traditional resources combined with relatively high capacity
reserve margins are likely to dampen power prices in the near-to-
intermediate term resulting in continuing weak 2010 - 2014 credit
metrics, in Fitch's estimation. EME's consolidated debt leverage
is high and credit metrics anemic. As of March 31, 2010, EME's
funds from operations -to-interest expense was 2.2 times and is
expected to remain around 2x in 2010 and 2011. Debt-to-FFO was
10x at the end of the first quarter 2010 and is estimated by Fitch
to approximate 10x-13x in 2010-2011 and weaken meaningfully in
2012, rebounding moderately in 2013-2014.
At the end of the first quarter 2010, approximately 60%-65% of
EME's expected 2010 output was hedged at an average price of
$42.97 per mwh and 25%-30% at EME Homer City Generation L.P. at
$79.19 per mwh. All-in average realized prices declined 16% at
MWG in 2009 to $47.97 per mwh from $57.18 per mwh and 6% at HC to
$56.66 per mwh from $60.26 per mwh. Based on consultant data for
2010-2012, Fitch expects relevant nodal round-the-clock power
prices to approximate $33-$39 per megawatt hour for 2010-2012 for
MWG and $40-$46 per mwh for HC, implying, all else equal, further
deterioration to EME gross margin and credit metrics.
Debt leverage is likely to remain high in coming years as EME
invests to comply with environmental regulations and selectively
expands its presence in national renewable markets. Fitch notes
management efforts to utilize U.S. Treasury grants to minimize
debt while managing funding costs for renewable projects through
an efficient mix of bank and vendor financings. EME's 2007
financial restructuring reduced debt at MWG, freeing-up future
borrowing capacity to fund environmental capex. As a result of
the company's 2007 financial restructuring, maturities are
manageable at EME. The next scheduled maturity is $500 million of
senior unsecured notes in 2013. As of March 31, 2010, EME had
total debt outstanding of approximately $6 billion (including off-
balance sheet debt), representing 68% of total capital. EME had
remaining borrowing capacity of $465 million under its
$564 million credit facility and MWG $497 million remaining on its
$500 million revolver. The EME and MWG secured bank facilities
mature in June 2012. As of March 31, 2010, EME had $1.034 billion
of cash and cash equivalents on its balance sheet.
Restrictive covenants in EME's credit agreement require that the
company maintain a minimum funds flow-to-interest coverage ratio
of 1.20x or higher. The calculated ratio was 1.99x for the
trailing four quarters ended March 31, 2010. Fitch notes that the
numerator of the funds flow-to-interest coverage ratio includes
funds distributed to EME from financing of certain wind assets in
June 2009, which Fitch calculates raised the coverage ratio from
1.56x. Fitch believes U.S. Treasury cash grants and distributions
from EME project financings will be sufficient to enable the
company to meet or exceed the minimum funds flow-to-interest
coverage ratio of 1.20x in 2010-2012.
The ratings and outlook for MWG reflect its position within the
EME corporate family. MWG has little debt outstanding and
benefits from strong coverage and debt leverage ratios. However,
MWG's debt ratings are linked to EME through inter-company loan
agreements and loan guarantees with EME.
Environmental challenges loom large on the horizon. EME and MWG
continue to evaluate whether to install emission control
technologies to comply with existing state and federal regulations
in the near-to-intermediate term or close non-compliant
facilities. EME also continues to evaluate the use of
alternatives to traditional dry flue-gas desulfurization
technology to minimize capital cost and future new money debt
financings. EME's consolidated margin and cash flows could be
further challenged in the intermediate-to-long term by more
stringent CAIR and CAMR EPA rules and greenhouse gas regulations.
The ratings also consider cost cutting efforts by management
including renegotiation of turbine contracts with certain vendors.
EIF CALYPSO: S&P Downgrades Rating on $800 Mil. Notes to 'B+'
-------------------------------------------------------------
Standard & Poor's Ratings Services said it lowered its rating on
U.S. power plant owner EIF Calypso LLC's $800 million in senior
secured facilities to 'B+' from 'BB'. The facilities consist of a
$150 million letter of credit, a two-tranche term loan of
$260 million (tranche A amortizing and maturing 2014;
$174 million outstanding) and a $390 million (tranche B maturing
2019; $335.3 million outstanding). The recovery rating on the
facilities remains '2', indicating expectations of substantial
recovery (70%-90%) of principal if a payment default occurs.
The ratings action reflects lower expected cash distributions from
assets within Calypso Energy Holdings LLC, of which EIF Calypso
owns 80%.
At Windsor Financing, problems include lower debt service coverage
in 2009 caused by poor fuel quality; higher-than-expected capacity
factors causing increased wear; coal production, transportation,
and delivery issues; and higher-than-expected substitute power
expenses. S&P currently project that Windsor will not make
distributions in 2010 and 2011, and management does not currently
have enough visibility to expect when distributions will resume.
At Selkirk Cogen, lower merchant energy margins have negatively
affected the 23% of Selkirk's capacity that became merchant after
the power purchase agreements with Niagara Mohawk Power Corp.
expired in June 2008. Based on S&P's projections, Selkirk will
not meet its distribution test of 1.35x through the bonds'
maturity in 2012.
At Carney's Point, partial exposure to market pricing has resulted
in substantial underperformance for 2009, distributing
$1.7 million as compared with budgeted expectations of about
$12.5 million. As a result, S&P view the cash flow coming from
the plant as more volatile, which affects S&P's overall assessment
of risk for the entire portfolio because Carney's Point is
expected to make 17% of distributions to Calypso Energy Holdings
on a pro forma basis.
The negative outlook reflects S&P's view that the merchant portion
of Selkirk's capacity will be insufficient to allow distributions
resulting in a cash trap in 2011. Combined with ongoing
operational difficulties at Windsor, this will result in cash
traps at two of the portfolio's key assets in 2010 and 2011.
"This decrease in expected distributions and the increased
volatility in cash flows at other assets, such as Carney's Point,
have increased the portfolio's risks," said Standard & Poor's
credit analyst Theodore Dewitt.
The outlook also reflects S&P's concern that management visibility
into expected asset performance is limited though 2011. If
coverage ratios reach the 1.10x-1.15x range, S&P may consider a
downgrade. However, if Windsor resolves its operational issues,
Selkirk performs above expectations, and the new asset managers
bring increased visibility to future performance, S&P could change
the outlook to stable.
ELIZABETH CAMPISI: Voluntary Chapter 11 Case Summary
----------------------------------------------------
Debtor: Elizabeth Campisi
430 Tierra Del Sol
Hollister, CA 95023
Bankruptcy Case No.: 10-56816
Chapter 11 Petition Date: June 30, 2010
Court: U.S. Bankruptcy Court
Northern District of California (San Jose)
Judge: Arthur S. Weissbrodt
Debtor's Counsel: Elaine M. Seid, Esq.
McPharlin, Sprinkles and Thomas
10 Almaden Boulevard #1460
San Jose, CA 95113
Tel: (408) 293-1900
E-mail: emseid@mstpartners.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
The Debtor did not file a list of creditors together with its
petition.
The petition was signed by the Debtor.
EMMIS COMMUNICATIONS: Files Amended Annual Report on Form 10-K
--------------------------------------------------------------
Emmis Communications Corporation filed with the Securities and
Exchange Commission an amended annual report on Form 10-K for the
fiscal year ended Feb. 28, 2010. The Company said it filed this
amended annual report in order to provide disclosure under Part
III of the 2010 Form 10-K that was originally omitted.
A full-text copy of the Company's amended annual report on Form
10-K is available for free at http://ResearchArchives.com/t/s?65c9
About Emmis Communications
Headquartered in Indianapolis, Indiana, Emmis Communications
Corporation owns and operates radio stations and magazine
publications in the U.S. and in Europe.
At February 28, 2010, the Company had $498,168,000 in total
assets; $487,246,000 in total liabilities and $140,459,000 in
Series A Cumulative Convertible Preferred Stock; and shareholders'
deficit of $178,959,000. At February 28, 2010, the Company had
non-controlling interests of $49,422,000 and total deficit of
$129,537,000.
As of April 15, 2010, the Company had not paid the Preferred Stock
dividend for six consecutive quarterly periods.
* * *
In April 2009, Moody's cut its corporate family rating on the
Company to 'Caa2'.
In May 2009, S&P raised its corporate credit rating on the Company
to 'CCC+'. In June, S&P withdrew the 'CCC+' Corp. Credit Rating
at the Company's request.
ERIC MILLER: Case Summary & 9 Largest Unsecured Creditors
---------------------------------------------------------
Joint Debtors: Eric J. Miller
dba E. Miller Properties
dba E. Miller Real Estate
Toula Z. Miller
34 Hummingbird Road
Reading, PA 19610
Bankruptcy Case No.: 10-21923
Chapter 11 Petition Date: June 29, 2010
Court: United States Bankruptcy Court
Eastern District of Pennsylvania (Reading)
Judge: Richard E. Fehling
Debtor's Counsel: Jennifer R. Alderfer, Esq.
E-mail: jra@cdllawoffice.com
John A. Digiamberardino, Esq.
E-mail: jad@cdllawoffice.com
Case DiGiamberardino & Lutz, PC
845 North Park Road, Suite 101
Wyomissing, PA 19610
Tel: (610) 372-9900
Fax: (610) 372-5469
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
A list of the Company's 9 largest unsecured creditors
filed together with the petition is available for free
at http://bankrupt.com/misc/paeb10-21923.pdf
The petition was signed by Eric J. Miller and Toula Z. Miller.
ESCOM LLC: Sedo to Sell Sex.com Web Site at Auction
---------------------------------------------------
Donna Goodison at Boston Herald reports that Sedo was employed to
privately broker the sale of Sex.com as part of an involuntary
Chapter 11 case filed against Escom LLC, which bought the site for
$14 million in 2006.
Three creditors filed an involuntary Chapter 11 petition March 17
against Escom (Bankr. C.D. Calif. Case No. 10-13001). The
petition halted foreclosure by secured creditor DOM Partners LLC,
owed $4.5 million. The companies that filed the involuntary
petition are controlled by an individual named Michael Mann, who
is Escom's manager.
According to Bloomberg, the bankruptcy court denied a motion by
DOM to dismiss the petition as having been filed in bad faith.
The judge also refused to allow DOM to continue foreclosure.
A motion for the appointment of a Chapter 11 trustee is pending.
FAIRFAX CROSSING: Case Summary & 6 Largest Unsecured Creditors
--------------------------------------------------------------
Debtor: Fairfax Crossing LLC
741 East Washington Street
Charles Town, WV 25414
Tel: (304) 725-9233
Bankruptcy Case No.: 10-01362
Chapter 11 Petition Date: June 29, 2010
Court: United States Bankruptcy Court
Northern District of West Virginia (Martinsburg)
Judge: BK Patrick M. Flatley
Debtor's Counsel: Richard G. Gay, Esq.
Law Office of Richard G. Gay
31 Congress Street
Berkeley Springs, WV 25411
Tel: (304) 258-1966
Fax: (304) 258-1967
E-mail: richardgay@rglawoffices.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 6 largest unsecured creditors
filed together with the petition is available for free
at http://bankrupt.com/misc/wvnb10-01362.pdf
The petition was signed by Ronald E. Marcus, member.
Debtor-affiliate that filed separate Chapter 11 petition:
Petition
Debtor Case No. Date
------ -------- ----
Turf LLC 10-00970 04/29/10
FAIRFAX CROSSING II: Case Summary & 3 Largest Unsecured Creditors
-----------------------------------------------------------------
Debtor: Fairfax Crossing II LLC
714 East Washington Street
Charles Town, WV 25414
Tel: (304) 725-9233
Bankruptcy Case No.: 10-01368
Chapter 11 Petition Date: June 29, 2010
Court: U.S. Bankruptcy Court
Northern District of West Virginia (Martinsburg)
Judge: BK Patrick M. Flatley
Debtor's Counsel: Richard G. Gay, Esq.
Law Office of Richard G. Gay
31 Congress Street
Berkeley Springs, WV 25411
Tel: (304) 258-1966
Fax: (304) 258-1967
E-mail: richardgay@rglawoffices.com
Estimated Assets: $10,000,001 to $50,000,000
Estimated Debts: $1,000,001 to $10,000,000
The petition was signed by Ronald E. Marcus, member.
Debtor-affiliate filing separate Chapter 11 petition:
Entity Case No. Petition Date
------ -------- -------------
Turf LLC 10-00970 04/29/10
Debtor's List of 3 Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
------ --------------- ------------
Sheriff of Jefferson County real estate taxes $56,651
P.O. Box 9
Charles Town, WV 25414
Sheriff of Jefferson County 2010 real estate $25,031
P.O. Box 9 taxes
Charles Town, WV 25414
West Virginia State Tax Department franchise tax $16,270
397 Mid Atlantic Parkway, Suite 2
Martinsburg, WV 25401
FAIRPOINT COMMS: Bank Debt Trades at 31% Off in Secondary Market
----------------------------------------------------------------
Participations in a syndicated loan under which FairPoint
Communications, Inc., is a borrower traded in the secondary market
at 69.08 cents-on-the-dollar during the week ended Friday, July 2,
2010, according to data compiled by Loan Pricing Corp. and
reported in The Wall Street Journal. This represents a drop of
3.83 percentage points from the previous week, The Journal
relates. The Company pays 275 basis points above LIBOR to borrow
under the facility, which matures on March 31, 2015. Moody's has
withdrawn its rating, while Standard & Poor's has assigned a
default rating on the bank debt. The debt is one of the biggest
gainers and losers among 191 widely quoted syndicated loans with
five or more bids in secondary trading for the week ended Friday.
FairPoint Communications, Inc. (NYSE: FRP) --
http://www.fairpoint.com/-- is an industry-leading provider of
communications services to communities across the country.
FairPoint owns and operates local exchange companies in 18 states
offering advanced communications with a personal touch, including
local and long distance voice, data, Internet, television and
broadband services. FairPoint is traded on the New York Stock
Exchange under the symbols FRP and FRP.BC.
FairPoint and its affiliates filed for Chapter 11 on Oct. 26, 2009
(Bankr. D. Del. Case No. 09-16335). Rothschild Inc. is acting as
financial advisor for the Company; AlixPartners, LLP as the
restructuring advisor; and Paul, Hastings, Janofsky & Walker LLP
is the Company's counsel. BMC Group is claims and notice agent.
As of June 30, 2009, FairPoint reported $3.24 billion in total
assets, $321.41 million in total current liabilities,
$2.91 billion in total long-term liabilities, and $1.23 million in
total stockholders' equity.
Bankruptcy Creditors' Service, Inc., publishes FairPoint
Communications Bankruptcy News. The newsletter tracks the Chapter
11 proceedings of FairPoint Communications Inc. and its debtor-
affiliates. (http://bankrupt.com/newsstand/or 215/945-7000)
FAIRPOINT COMMS: Reaches Settlement with Verizon New England
------------------------------------------------------------
FairPoint Communications Inc. and its units seek the Court's
authority to enter into a settlement agreement with Verizon New
England Inc. with respect to their intent to assume more than 80
VNE Leases effective as of June 8, 2010.
Debtors Northern New England Telephone Operations LLC dba
FairPoint Communications and Telephone Operating Company of
Vermont LLC dba FairPoint Communications -- collectively referred
to as FairPoint NNE -- are successors-in-interest and assignees
of VNE with respect to certain lease agreements, which were
originally entered into by VNE as lessee with certain third party
lessors.
Certain of the Lessors have claimed that VNE remains liable under
the Leases for base rent and other additional rent costs payable
by the tenant if those Lease Costs are not paid as due by
FairPoint NNE in accordance with the terms of the Leases.
Moreover, VNE has asserted an indemnification claim against the
Debtors that VNE alleges would be triggered if the Lessors
asserted those rent cost claims against it.
In an effort to avoid the costs and time associated with
litigating disputes and in order to resolve the claims relating
the Lease Costs, the parties entered into negotiations and
ultimately reached an agreement. Essentially, the Debtors agree
to assume certain leases and indemnify Verizon for claims
relating to lease costs and post-merger claims in return for a
settlement payment.
The specific terms of the parties' Settlement Agreement are:
(a) For the Leases designated as "Assumed", FairPoint NNE
agrees to assume all of the obligations of the tenant
under the Assumed Leases. With respect to Assumed Leases,
FairPoint NNE agrees to cure all amounts owed in
accordance with the procedures set forth under the
Debtors' Chapter 11 Plan and pursuant to Section 365 of
the Bankruptcy Code no later than 18 months after the
Effective Date.
(b) VNE agrees to pay to FairPoint NNE a settlement amount of
$3,000,000, without interest, in equal semi-annual
installments of $600,000 each over a period of 30 months.
The initial installment payment will be payable no later
than 30 days after the Debtors obtain a Court approval of
the Settlement Agreement. Subsequent installment payments
will be payable on each January 2 and July 1 thereafter,
until paid in full.
(c) FairPoint NNE agree to defend with counsel reasonably
acceptable to VNE, and to indemnify and hold harmless VNE
and its representatives from all claims, lawsuits and
liabilities, including reasonable attorneys' fees arising
from (i) the Lease Costs, or (ii) any claim, lawsuit or
liability arising from or related to the condition of the
Leased Properties under the Leases that commenced or
initially occurred on or after March 31, 2008 and during a
period of occupancy or ownership of the Leased Properties
by the Debtors, but not its predecessors.
(d) VNE and Verizon Communications Inc. waive their rights
under section 10.2(a) of that certain Agreement and Plan
of Merger dated January 15, 2007 by and among Verizon,
Northern New England Spinco Inc. and FairPoint
Communications, Inc. with respect to their right, if any,
to seek indemnification for losses arising out of the
failure of the Debtors or their affiliates to pay all
Lease Costs under the Leases.
A schedule of the Assumed VNE Leases is available for free at:
http://bankrupt.com/misc/FarPt_assumedvneleases.pdf
About FairPoint Communications
FairPoint Communications, Inc. (NYSE: FRP) --
http://www.fairpoint.com/-- is an industry-leading provider of
communications services to communities across the country.
FairPoint owns and operates local exchange companies in 18 states
offering advanced communications with a personal touch, including
local and long distance voice, data, Internet, television and
broadband services. FairPoint is traded on the New York Stock
Exchange under the symbols FRP and FRP.BC.
FairPoint and its affiliates filed for Chapter 11 on Oct. 26, 2009
(Bankr. D. Del. Case No. 09-16335). Rothschild Inc. is acting as
financial advisor for the Company; AlixPartners, LLP as the
restructuring advisor; and Paul, Hastings, Janofsky & Walker LLP
is the Company's counsel. BMC Group is claims and notice agent.
As of June 30, 2009, FairPoint reported $3.24 billion in total
assets, $321.41 million in total current liabilities,
$2.91 billion in total long-term liabilities, and $1.23 million in
total stockholders' equity.
Bankruptcy Creditors' Service, Inc., publishes FairPoint
Communications Bankruptcy News. The newsletter tracks the Chapter
11 proceedings of FairPoint Communications Inc. and its debtor-
affiliates. (http://bankrupt.com/newsstand/or 215/945-7000)
FAIRPOINT COMMS: Files Omnibus Motions to Estimate Claims
---------------------------------------------------------
FairPoint Communications Inc. and its units have filed motions
asking Judge Lifland of the U.S. Bankruptcy Court for the Southern
District of New York Court for an order estimating the maximum
allowable amount for certain claims.
In the first omnibus motion, the Debtors contend that:
(a) Six of those claims, aggregating $5,444,844, are asserted
on the basis that the Debtors overcharged or misbilled the
customer for their services. The customers, however, have
failed to assert a "claim" because they have not asserted a
right to payment by the Debtors.
A schedule of the Customer Claims is available for free
at http://bankrupt.com/misc/FairPt_custclaims_june15.pdf
(b) Fifty-six of those claims, aggregating $1,321,838, relate
to proofs of claim that are "unliquidated,"
"undetermined," or otherwise assert contingent amounts.
Based on a review of their books and records, the Debtors
have estimated the maximum liability and priority of each
of Unliquidated Claims.
A schedule of the Unliquidated Claims is available for free
at http://bankrupt.com/misc/FairPt_unliqclaims_june15.pdf
(c) Twelve of those Claims, aggregating $1,952,376, were filed
by local taxing authorities in the state of New Hampshire
for taxes allegedly owed on account of real estate in the
public rights of ways used and occupied by the Debtors.
The same property taxes, however, were found to be
unconstitutional by the Supreme Court of New Hampshire,
because they are assessed against telephone companies, but
not other privately owned utilities like cable, natural
gas or electric companies, that occupy the same property as
the telephone company.
A schedule of the New Hampshire Claims is available for
free at http://bankrupt.com/misc/FairPt_NHclaims_june15.pdf
In their second omnibus motion, the Debtors ask the Court for an
order estimating at $0 the claims of 14 claimants, which consist
exclusively of contingent or unliquidated claims. The Claimants
and their corresponding claims are:
Claimant Claim No.
-------- -----------------
Allan C. Page 6389
Nicole Arey 7043
Kenneth and Gayle Buck 6536, 6542, 7916
7917, 7918, 7919
7920, 7921, 7922
Cathleen Adams 5925
Charles Pizer 3814
Erlene R. LeBorgne 5555
Isidro M. Flores 306
Karen Ann Pulkkinen 1931
Michael Poto 5697
Southwestern Bell Telephone Company 5915
Wendy Kile 5383
Craig and Ann T. Williams 6486
Kenneth J. Daly 6494
MMG Insurance as Subrogee to
Robert and Shannon Bickler 1636
The Debtors cite that section 9.22 of their Chapter 11 Plan
expressly contemplates the estimation of these Litigation Claims
so that appropriate reserves can be established on the Plan
Effective Date.
In their third omnibus motion, the Debtors ask Judge Lifland to
enter an order estimating at $0, the maximum allowable amount of
88 claims, aggregating $8,481,916, asserted by wholesale customers
of the Debtors. The Debtors contend that:
-- the Customer Claims failed to assert a "claim" because they
have not asserted a right to payment by the Debtors; and
-- each of the customers has failed to satisfy invoices for
services rendered by the Debtors and therefore is liable to
turnover money owed to the Debtors under Section 542(b) of
the Bankruptcy Code.
A schedule of the claims the Debtors propose for estimation is
available for free at:
http://bankrupt.com/misc/FairPt_3rdOM_estclaims.pdf
The Court will convene a hearing to consider the Debtors' request
on July 15, 2010, at 10:00 a.m. Eastern Time. The deadline to
file responses will be on July 8.
About FairPoint Communications
FairPoint Communications, Inc. (NYSE: FRP) --
http://www.fairpoint.com/-- is an industry-leading provider of
communications services to communities across the country.
FairPoint owns and operates local exchange companies in 18 states
offering advanced communications with a personal touch, including
local and long distance voice, data, Internet, television and
broadband services. FairPoint is traded on the New York Stock
Exchange under the symbols FRP and FRP.BC.
FairPoint and its affiliates filed for Chapter 11 on Oct. 26, 2009
(Bankr. D. Del. Case No. 09-16335). Rothschild Inc. is acting as
financial advisor for the Company; AlixPartners, LLP as the
restructuring advisor; and Paul, Hastings, Janofsky & Walker LLP
is the Company's counsel. BMC Group is claims and notice agent.
As of June 30, 2009, FairPoint reported $3.24 billion in total
assets, $321.41 million in total current liabilities,
$2.91 billion in total long-term liabilities, and $1.23 million in
total stockholders' equity.
Bankruptcy Creditors' Service, Inc., publishes FairPoint
Communications Bankruptcy News. The newsletter tracks the Chapter
11 proceedings of FairPoint Communications Inc. and its debtor-
affiliates. (http://bankrupt.com/newsstand/or 215/945-7000)
FAIRPOINT COMMS: Wants USAC Claims Estimated at $0
--------------------------------------------------
FairPoint Communications Inc. and its units ask the Court to:
(a) estimate the maximum allowable amount of 44 unliquidated
claims filed by the Universal Service Administrative
Company at $0; and
(b) estimate the maximum allowable amount of 10 contingent
claims, also filed by USAC.
USAC collects "Universal Service Funds" from telephone companies,
like the Debtors. The USF was established by the Federal
Communications Commission to subsidize the cost of telephone
service for residents of rural communities, low-income consumers,
rural health care providers, schools and libraries.
James T. Grogan, Esq., at Paul Hastings Janofsky & Walker LLP, in
New York, relates that the 44 Unliquidated Claims were filed by
USAC against Debtor entities that either (i) are not required to
contribute funds to the USF as they are not a telephone operating
company and do not generate any telecommunications revenues; (b)
only contribute funds to the USF and receive no funding under USF
programs; or (c) contribute to the USF and receive funds under
USF programs but do not have any open audits pending against
them.
The Debtors aver that they have reviewed each of the USAC
Unliquidated Claims and determined, based on their books and
records, that they have no liability with respect to those
Claims.
A list of the USAC Unliquidated Claims is available for free at:
http://bankrupt.com/misc/FairPt_usac_unliqclaim.pdf
The Debtors add that they have review each of the USAC Contingent
Claims and determined that an amount aggregating $1,937,894 need
to be disgorged as these are improper. These are:
-- $1,196,908 in USF Funding that the Debtors received on
account of the cost of cash working capital;
-- $391,466 in USF funding that the Debtors received on account
of the cost of equipment used to provide service in rural
areas;
-- $263,341 in USF funding that the Debtors received on account
of their employee costs;
-- $86,179 in USF funding that the Debtors received based on
alleged instance of immaterial non-compliance in the
Debtors' accounting.
The Debtors contend that many of these claims were filed in
"uncertain" amounts because USAC has no evidence that they owe
any money on account of those claims. Other claims, although
filed in a fixed amount, remain contingent upon the completion of
an audit process, the Debtors note.
A list of the USAC Contingent Claims is available for free at:
http://bankrupt.com/misc/FairPt_usac_cntgnt_claims.pdf
The Court will convene a hearing to consider the Debtors' request
on July 15, 2010, at 10:00 a.m., Eastern Time. Objections are
due no later than July 8.
About FairPoint Communications
FairPoint Communications, Inc. (NYSE: FRP) --
http://www.fairpoint.com/-- is an industry-leading provider of
communications services to communities across the country.
FairPoint owns and operates local exchange companies in 18 states
offering advanced communications with a personal touch, including
local and long distance voice, data, Internet, television and
broadband services. FairPoint is traded on the New York Stock
Exchange under the symbols FRP and FRP.BC.
FairPoint and its affiliates filed for Chapter 11 on Oct. 26, 2009
(Bankr. D. Del. Case No. 09-16335). Rothschild Inc. is acting as
financial advisor for the Company; AlixPartners, LLP as the
restructuring advisor; and Paul, Hastings, Janofsky & Walker LLP
is the Company's counsel. BMC Group is claims and notice agent.
As of June 30, 2009, FairPoint reported $3.24 billion in total
assets, $321.41 million in total current liabilities,
$2.91 billion in total long-term liabilities, and $1.23 million in
total stockholders' equity.
Bankruptcy Creditors' Service, Inc., publishes FairPoint
Communications Bankruptcy News. The newsletter tracks the Chapter
11 proceedings of FairPoint Communications Inc. and its debtor-
affiliates. (http://bankrupt.com/newsstand/or 215/945-7000)
FEDERAL-MOGUL: Opens Asia-Pacific Headquarters in Shanghai
----------------------------------------------------------
Federal-Mogul Corporation (Nasdaq: FDML) celebrated the grand
opening of its 9,000-square-meter, state-of-the-art Asia Pacific
Headquarters and Technical Center (#118 Jiqiao Road, Jinqiao,
Pudong) in Shanghai, China to serve the growing and dynamic
Chinese automotive industry.
The facility houses approximately 300 employees including
engineering, sales, purchasing and other administrative
activities, as well as powertrain dynamometers, vehicle and
braking test cells, and an array of laboratory equipment required
to develop and test new technology.
"China is and will continue to be a strategic market for the
automotive industry and for Federal-Mogul," said President and
Chief Executive Officer Jose Maria Alapont.
"Our new Asia Pacific Headquarters and Technical Center will
enable us to increase technical support to powertrain and vehicle
customers, offering on-site advanced technology development and
product engineering in addition to state-of-the-art testing.
Federal-Mogul's significant investment in this region will ensure
we grow our capability to provide leading technology and
innovation for local and export markets," said Mr. Alapont.
The Technical Center, which Federal-Mogul constructed in one of
China's rapidly growing industrial centers, is one of the
company's 18 globally-networked engineering and technical centers,
enabling the company to create value for its customers through
innovative technology that achieves product leadership at a
competitive cost. The facility's engineers will develop advanced
technology and product engineering, and will conduct a variety of
tests on powertrains and vehicle products and components for
customer programs. Federal-Mogul's global technical center
network is focused around leading product and process
competencies, working interdependently on many customer powertrain
programs and vehicle platforms.
Federal-Mogul, in addition to the Asia Pacific Headquarters and
Technical Center, has seven plant operations in China, employing
2,000 people and manufacturing all major products from its global
portfolio for original equipment and aftermarket customers.
Federal-Mogul has two facilities in Shanghai; two in Qingdao; one
in Anqing; one in Nanchang and two in Wuhan. Federal-Mogul
develops and manufactures a variety of leading products, including
pistons and rings, valve seats and guides, bearings, seals, head
gaskets and ignition for both gasoline and diesel powertrains,
together with vehicle braking and friction materials, chassis
components and systems protection products, serving the world's
foremost original equipment manufacturers and the global
aftermarket industry.
"Federal-Mogul is expanding our presence in Asia Pacific,
especially in China, because we believe in the long-term growth
prospects of the increasingly sophisticated Chinese automotive
market and other regional markets. We continue to implement
actions to strengthen the company's strategy to generate
sustainable global profitable growth," said Mr. Alapont.
About Federal-Mogul
Federal-Mogul Corporation is a supplier of powertrain, chassis and
as 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. Federal-Mogul was
founded in Detroit in 1899. The Company is headquartered in
Southfield, Michigan, and employs nearly 41,000 people in 33
countries.
The Company filed for Chapter 11 protection on October 1, 2001
(Bankr. Del. Case No. 01-10582). Attorneys at Sidley Austin Brown
& Wood, and Pachulski, Stang, Ziehl & Jones, P.C., represented the
Debtors in their restructuring effort. When the Debtors filed for
protection from their creditors, they listed $10.15 billion in
assets and $8.86 billion in liabilities. Attorneys at The Bayard
Firm represented the Official Committee of Unsecured Creditors.
The Debtors' Reorganization 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-'. "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.
Moody's Investors Service in April 2009, lowered corporate family
rating of Federal-Mogul to B1 from Ba3. At that time, Moody's
said the downgrade "reflects the company's weakened credit metrics
as a result of the dramatic decline of global automotive
production and the impact of the global recessionary environment
on consumer spending."
The ratings have remained the same at present.
FIDELITY NATIONAL: S&P Downgrades Corporate Credit Rating to 'BB'
-----------------------------------------------------------------
Standard & Poor's Ratings Services said it lowered its corporate
credit rating on Jacksonville, Fla.-based Fidelity National
Information Services Inc. to 'BB' from 'BB+' and removed it from
CreditWatch, where it had been placed with negative implications
on May 18, 2010. The outlook is stable.
At the same time, S&P assigned its issue and recovery ratings to
FIS's proposed extended senior secured term loan A2 of up to
$2 billion, the proposed new $1.4 billion senior secured term loan
B, and the up to $933 million extending revolving credit facility.
The issue ratings on all these are 'BBB-', with recovery ratings
of '1', indicating expectations for very high (90%-100%) recovery
in the event of a payment default.
In addition, S&P raised the ratings on the existing and non-
extending $397 million term loan A1 and $103 million revolver to
'BBB-' from 'BB+', and revised the recovery rating to '1' from
'3'. S&P withdrew the 'BB+' rating on FIS's $500 million term
loan C.
S&P has also lowered the ratings on the existing $145 million
accounts receivable-backed revolving credit facility issued by a
subsidiary of Fidelity National to 'BBB-' from 'BBB'. The
recovery rating remained at '1', indicating expectations for very
high (90% to 100%) recovery in the event of a payment default.
S&P expects proceeds from the transaction to be used to repay the
existing $800 million term loan B at Metavante Corp. and for share
repurchases.
"The downgrade follows FIS's decision to pursue a leveraged
recapitalization, issuing $2.6 billion of incremental debt to
repurchase its common stock through a Dutch auction tender offer,"
said Standard & Poor's credit analyst Philip Schrank. Although
the company also evaluated an LBO proposal presented to them, the
current financial policy is one which seeks to balance a
commitment to enhancing shareholder value with maintaining the
financial flexibility to execute its business plan. Initial pro
forma leverage -- annualizing its first-quarter 2010 EBITDA --
will approach the 4x area.
"While high for the rating, the leveraged financial profile is
partly offset by FIS's satisfactory business profile and its
capacity to reduce debt, if the company chooses, from its strong
free cash flow generation," added Mr. Schrank. Over the near
term, S&P expects leverage to decline somewhat following the
recapitalization. S&P could raise the rating over the medium term
if the company sustains leverage near 3x.
FIRST FOLIAGE: U.S. Trustee Appoints 5 Members to Creditors Panel
-----------------------------------------------------------------
Donald F. Walton, the U.S. Trustee for Region 21, appointed five
members to the Official Committee of Unsecured Creditors in First
Foliage, L.C.'s Chapter 11 cases.
The Committee members include:
1) Art Phelps
BWI Companies, Inc.
P.O. Box 990
Nash, TX 75569
Tel: (903) 334-0303
Fax: (903) 831-4799
E-mail: artphelps@bwicompanies.com
2) Joseph C. Roberts, President
ForemostCo, Inc.
8457 NW 66 Street
Miami, FL 33166
Tel: (305) 592-8986
Fax: (305) 599-7362
E-mail: joe@foremostco.com
3) Bill Schoppman, Credit Supervisor
Harrell's
720 Kraft Road
Lakeland, FL 33815
Tel: (800) 780-2774 X 2266
Fax: (863) 904-1545
E-mail: bschoppman@harrells.com
4) Kerry L. Herndon
Kerry's Nursery, Inc.
d/b/a Twyford International, Inc.
21840 SW 258 Street
Homestead, FL 33031
Tel: (305) 247-7096
Fax: (305) 247-2850
E-mail: kherndon@kerrys.com
: nharter@kerrys.com
5) Eduardo Vallin, President
Valroy Liners, Inc.
P.O. Box 343238
Florida City, FL 33034
Tel: (305) 970-9696
Fax: (305) 248-3255
E-mail: valroyliners@att.net
Homestead, Florida-based First Foliage, L.C., filed for Chapter 11
bankruptcy protection on June 23, 2010 (Bankr. S.D. Fla. Case No.
10-27532). Luis Salazar, Esq., who has an office in Coral Gables,
Florida, assists the Company in its restructuring effort. The
Company listed $50,000,001 to $100,000,000 in assets and
$10,000,001 to $50,000,000 in liabilities.
FIRST FOLIAGE: Gets Interim Nod to Tap Infante Zumpano
------------------------------------------------------
First Foliage, L.C., sought and obtained interim authorization
from the Hon. Laurel Myerson Isicoff of the U.S. Bankruptcy Court
for the Southern District of Florida to employ Infante, Zumpano,
Hudson & Miloch, LLC, as general counsel, nunc pro tunc to the
Petition Date.
Infante Zumpano will, among other things:
a. advise the Debtor in connection with post-petition
financing and cash collateral arrangements, provide advice
and counsel with respect to pre-petition financing
arrangements, and provide advice to the Debtor in
connection with emergence financing and capital structure,
and negotiate and draft documents relating thereto;
b. advise the Debtor on matters relating to the evaluation of
unexpired leases and executor contracts to be assumed,
rejected or assigned;
c. advice the Debtor with respect to legal issues arising in
or relating to the Debtor's ordinary course of business
including, as may or may not arise: meetings of the
Debtor's Board of Directors, senior management, or other
professionals to be retained by separate application and
order in the Court, and provide advice and counsel on
matters involving employees, employee benefits, tax,
insurance, corporate, business operation, contracts, real
property, media, press releases, and public affairs; and
d. prepare motions, pleadings, orders, applications,
responses, adversary proceedings, and other legal
documents necessary in the administration of the case.
Infante Zumpano will be paid based on its hourly rates:
Luis Salazar $400
Linda Jackson $400
Celi S. Aguilar $225
Karina Dominguez $180
Partners $285-$400
Of Counsel $270-$400
Associates $270-$300
Law Clerks $195-$200
Paralegals $120-$180
Junior Paralegal $50-$85
Luis Salazar, Esq., a partner at Infante Zumpano, assures the
Court that MS is a "disinterested person" as that term is defined
in Section 101(14) of the Bankruptcy Code.
The Court has set a final hearing for July 8, 2010, at 1:30 p.m.
on the Debtor's request to hire Infante Zumpano as general
counsel.
Homestead, Florida-based First Foliage, L.C., filed for Chapter 11
bankruptcy protection on June 23, 2010 (Bankr. S.D. Fla. Case No.
10-27532). The Company listed $50,000,001 to $100,000,000 in
assets and $10,000,001 to $50,000,000 in liabilities.
FLORASTENE HOLDEN: Case Summary & 16 Largest Unsecured Creditors
----------------------------------------------------------------
Debtor: Florastene Holden
9579 Estrella Hills Street
Riverside, CA 92508
Bankruptcy Case No.: 10-30283
Chapter 11 Petition Date: June 30, 2010
Court: U.S. Bankruptcy Court
Central District of California (Riverside)
Judge: Catherine E. Bauer
Debtor's Counsel: Thomas P. Giordano, Esq.
500 State College Boulevard, Suite 530
Orange, CA 92868
Tel: (714) 912-7810
Fax: (714) 912-7860
E-mail: tohmahso@aol.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
A copy of the Debtor's list of 16 largest unsecured creditors
filed together with the petition is available for free at
http://bankrupt.com/misc/cacb10-30283.pdf
The petition was signed by the Debtor.
FLYING J: Pilot to Sell 26 Locations to Secure FTC Clearance
------------------------------------------------------------
The Federal Trade Commission is requiring Pilot Corporation, owner
of the largest travel center network in the United States, to sell
26 locations as part of a settlement that will replace the
competition lost because of Pilot's proposed $1.8 billion
acquisition of Flying J Inc.'s travel center network. Pilot has
agreed to sell the travel centers, which provide diesel, food,
parking, and other amenities for truckers, to Love's Travel Stops
and Country Stores, the smallest national travel center operator,
currently concentrated in the South.
"The proposed settlement will resolve the competitive concerns
resulting from Pilot's acquisition of Flying J's travel center
business, which would have likely resulted in higher diesel fuel
prices for long-haul trucking fleets," said Richard A. Feinstein,
Director of the FTC's Bureau of Competition.
According to the FTC's complaint, the deal between Pilot and
Flying J would have reduced competition for certain long-haul
trucking fleets for which Pilot and Flying J were the first and
second best choices for their diesel needs.
The divestiture to Love's, along with Love's aggressive expansion
plans, will allow it to compete better for long-haul fleets that
otherwise would be harmed by Pilot's acquisition of Flying J.
The settlement order contains several provisions designed to
ensure that Love's can become a successful competitor to the newly
formed Pilot/Flying J. The order requires Pilot to:
* Provide Love's, at its request, access to and use of a fuel
purchase card system that Pilot is acquiring (and maintain
appropriate firewalls during this access and use);
* Continue operating Wendy's restaurants affiliated with
certain divested travel centers for one year;
* Not interfere with the transfer of any employees who choose
to work with Love's after it acquires the travel centers;
and
* Provide Love's with business information related to the
26 travel centers being sold, and maintain the travel
centers as viable businesses until they can be transferred
to Love's.
In addition, the order allows the FTC to appoint an interim
monitor to oversee the sale of the assets, if necessary, and
contains reporting and other terms to ensure Pilot's compliance.
The FTC vote approving the complaint and proposed settlement order
was 4-0-1, with Commissioner Julie Brill not participating. The
order will be subject to public comment for 30 days, until
July 30, 2010, after which the Commission will decide whether to
make it final. Comments should be sent to: FTC, Office of the
Secretary, 600 Pennsylvania Avenue, N.W., Washington, DC 20580.
To submit a comment electronically, please click on:
https://public.commentworks.com/ftc/pilot-flyingj
Kevin Kingsbury at Dow Jones Newswires notes Flying J is selling
its 250 travel plazas, or retail outlets, which include rest
stops, motels, restaurants, and truck-service centers across the
U.S. and Canada. Pilot, which has more than 300 properties in 41
states, has provided $100 million in bankruptcy financing to
Flying J.
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.
Attorneys at Young Conaway Stargatt & Taylor LLP, and Kirkland &
Ellis LLP, represent the Debtors in their Chapter 11 effort.
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.
FLYING J: Montana Agrees to Cut Environmental Claims to $2.7MM
--------------------------------------------------------------
Bankruptcy Law360 reports that Montana's environmental regulator
has agreed to reduce its claims against Flying J Inc. from
$50.3 million to just $2.7 million as part of a settlement with
the Company.
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.
Attorneys at Young Conaway Stargatt & Taylor LLP, and Kirkland &
Ellis LLP, represent the Debtors in their Chapter 11 effort.
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.
FORD MOTOR: Files 2009 Annual Report on Salaried Employees Plan
---------------------------------------------------------------
LodgeNet Interactive Corporation filed with the Securities and
Exchange Commission an annual report on Form 11-K for the
LodgeNet Interactive Corporation 401(k) Plan for the year ended
December 31, 2009. Net assets available for benefits at
December 31, 2009, total $33,229,001.
A full-text copy of the Form 11-K report is available at no charge
at http://ResearchArchives.com/t/s?65d1
About LodgeNet Interactive
Sioux Falls, South Dakota-based LodgeNet Interactive Corporation
(Nasdaq:LNET) -- http://www.lodgenet.com/-- provides media and
connectivity solutions designed to meet the unique needs of
hospitality, healthcare and other guest-based businesses.
LodgeNet Interactive serves more than 1.9 million hotel rooms
worldwide in addition to healthcare facilities throughout the
United States. The Company's services include: Interactive
Television Solutions, Broadband Internet Solutions, Content
Solutions, Professional Solutions and Advertising Media Solutions.
LodgeNet Interactive Corporation owns and operates businesses
under the industry leading brands: LodgeNet, LodgeNetRX, and The
Hotel Networks.
The Company's balance sheet at March 31, 2010, revealed
$485.0 million in total assets and $542.2 million in total
liabilities, for a total stockholders' deficit of $57.2 million.
* * *
As reported by the Troubled Company Reporter on June 21, 2010,
Standard & Poor's Ratings Services affirmed its ratings on
LodgeNet Interactive Corp., including the 'B-' corporate credit
rating. At the same time, S&P revised the rating outlook to
positive from stable.
According to the TCR on September 30, 2009, Moody's Investors
Service upgraded LodgeNet Interactive Corporation's speculative
grade liquidity rating to SGL-3 (indicating adequate liquidity)
from SGL-4 (indicating poor liquidity) while revising the outlook
for all ratings to stable from negative. Concurrently, Moody's
also affirmed LodgeNet's B3 corporate family rating and Caa1
probability of default rating.
FORD MOTOR: Files 2009 Annual Report on Hourly Employees Plan
-------------------------------------------------------------
Ford Motor Company filed with the Securities and Exchange
Commission an annual report on Form 11-K for the Ford Motor
Company Tax-Efficient Savings Plan for Hourly Employees for the
year ended December 31, 2009. Net assets available for benefits
at December 31, 2009, total $3,487,920,813.
A full-text copy of the Form 11-K report is available at no charge
at http://ResearchArchives.com/t/s?65cd
About Ford Motor
Headquartered in Dearborn, Michigan, Ford Motor Co. (NYSE: F) --
http://www.ford.com/-- manufactures or distributes automobiles
across six continents. With about 200,000 employees and about 90
plants worldwide, the company's automotive brands include Ford,
Lincoln, Mercury and Volvo. The Company provides financial
services through Ford Motor Credit Company.
At March 31, 2010, the Company had $191.968 billion in total
assets against $197.405 billion in total liabilities.
As reported by the Troubled Company Reporter on June 7, 2010,
Moody's released an Issuer Comment stating that the ratings and
outlook of Ford Motor Company are being maintained following the
company's announcement that it will end production of Mercury
vehicles during the fourth quarter of this year. Ford's ratings
include: B1 Corporate Family Rating and Probability of Default
Rating; Ba1 secured rating; B2 unsecured rating; and SGL-2
Speculative Grade Liquidity Rating. The rating outlook is stable.
The last rating action on Ford was an upgrade of the company's
Corporate Family Rating to B1 on May 18, 2010.
FORD MOTOR: 11 Directors Acquire Stock Units
--------------------------------------------
Eleven directors of Ford Motor Company delivered to the Securities
and Exchange Commission Form 4s disclosing their ownership of
derivative securities in the automaker.
John L. Thornton disclosed acquiring on June 30, 2010, 4,863 Ford
Stock Units, raising his holdings to 161,293 units.
Gerald L. Shaheen disclosed acquiring on June 30, 2010, 2,918 Ford
Stock Units, raising his holdings to 46,203 units.
Homer A. Neal disclosed acquiring on June 30, 2010, 2,918 Ford
Stock Units, raising his holdings to 82,203 units.
Richard A. Manoogian disclosed acquiring on June 30, 2010, 2,918
Ford Stock Units, raising his holdings to 79,053 units.
Irvine O. Hockaday Jr. disclosed acquiring on June 30, 2010, 4,012
Ford Stock Units, raising his holdings to 139,529 units.
Richard A. Gephardt disclosed acquiring on June 30, 2010, 2,918
Ford Stock Units, raising his holdings to 11,331 units.
Edsel B. Ford II disclosed acquiring on June 30, 2010, 2,918 Ford
Stock Units, raising his holdings to 80,872 units. Mr. Ford also
disclosed acquiring 12,401 Ford common shares and disposing of
8,402 of those shares, all on June 30. He is deemed to directly
own 2,195,110 of Ford common shares after the transaction.
Anthony F. Earley Jr. disclosed acquiring on June 30, 2010, 2,918
Ford Stock Units, raising his holdings to 11,331 units.
Kimberly A. Casiano disclosed acquiring on June 30, 2010, 2,918
Ford Stock Units, raising his holdings to 70,749 units.
Stephen G. Butler disclosed acquiring on June 30, 2010, 2,918 Ford
Stock Units, raising his holdings to 70,415 units.
The Ford Stock Units were credited to each of the directors'
account by the Company under the Company's Deferred Compensation
Plan for Non-Employee Directors. In general, the Ford Stock Units
will be converted and distributed to the directors, without
payment, in cash, on January 10th of the year following
termination of Board service, based upon the then current market
value of a share of Common Stock.
About Ford Motor
Headquartered in Dearborn, Michigan, Ford Motor Co. (NYSE: F) --
http://www.ford.com/-- manufactures or distributes automobiles
across six continents. With about 200,000 employees and about 90
plants worldwide, the company's automotive brands include Ford,
Lincoln, Mercury and Volvo. The Company provides financial
services through Ford Motor Credit Company.
At March 31, 2010, the Company had $191.968 billion in total
assets against $197.405 billion in total liabilities.
As reported by the Troubled Company Reporter on June 7, 2010,
Moody's released an Issuer Comment stating that the ratings and
outlook of Ford Motor Company are being maintained following the
company's announcement that it will end production of Mercury
vehicles during the fourth quarter of this year. Ford's ratings
include: B1 Corporate Family Rating and Probability of Default
Rating; Ba1 secured rating; B2 unsecured rating; and SGL-2
Speculative Grade Liquidity Rating. The rating outlook is stable.
The last rating action on Ford was an upgrade of the company's
Corporate Family Rating to B1 on May 18, 2010.
FREMONT GENERAL: Court Approves Settlement Agreement With FIA
-------------------------------------------------------------
In a regulatory filing Thursday, Signature Group Holdings, Inc.,
fka. Fremont General Corp., disclosed that on June 9, 2010, the
Bankruptcy Court approved the Company and Fremont Reorganizing
Corporation ("FRC")'s Settlement Agreement and Release with
Federal Insurance Company, dated May 7, 2010, to settle the
Adversary Proceeding of Fremont General Corporation, et al. v.
Federal Insurance Company, No. 8-08-ap-01418-ES.
The Adversary Proceeding was initiated by the Company and FRC
against Federal asserting breach of contract, declaratory relief
and breach of the covenant of good faith and fair dealing relating
to separate insurance coverage disputes that involved coverage
sought by the Company and FRC under two insurance policies issued
by Federal: a 2007 Bankers Professional Liability for Financial
Institutions policy ("BPL Policy") and a Commercial General
Liability Policy ("CGL Policy"). The BPL Policy coverage dispute
involved Federal's obligation to indemnify the Company's and FRC's
liabilities in connection with the lawsuit captioned Commonwealth
of Massachusetts v. Fremont Investment & Loan, et al., No. 07-
4373-BLS1 filed in the Superior Court for Suffolk County (the
"Massachusetts Litigation"), as well as certain other lawsuits.
The CGL Policy coverage dispute involved Federal's obligation to
provide coverage for FRC's liabilities in connection with a
lawsuit brought by the NAACP. The Settlement Agreement had been
entered into as part of the Company's ongoing initiative to
resolve contingent and unliquidated claims and various litigation
matters.
Pursuant to the terms of the Settlement Agreement, Federal agreed
to pay the Company the sum of $2,918,804.88, which amount, when
added together with approximately $7.1 million previously paid by
Federal to the Company for costs and expenses related to its
defense of the Massachusetts Litigation will equal the policy
limits payable to the Company under the BPL Policy. Federal also
agreed to make the Settlement Payment to the Company within two
business days after the Bankruptcy Court approves the Settlement
Agreement and the expiration of the 14 day period for the filing
of an appeal of the Bankruptcy Court decision.
On June 24, 2010 the Bankruptcy Court's order became final.
The Settlement Agreement also provides for the Company, FRC and
Federal to execute and deliver a joint stipulation to the
Bankruptcy Court to provide for the dismissal of the Adversary
Proceeding, with prejudice, and for the Company to withdraw both
its pending motion for leave to appeal and its pending appeal
involving Federal with prejudice. The signed joint stipulations
will be filed by the Company with the appropriate courts upon
receipt by the Company of the Settlement Payment.
Upon the Company's receipt of the Settlement Payment, pursuant to
the Settlement Agreement, the Company and FRC and Federal will
mutually release, remise, acquit, and forever discharge each other
and certain related parties (including any person or entity
constituting an Insured (as that term is defined under the subject
insurance policies) from any and all past, present, and future
claims, arising out of, related to, or in any way involving,
directly or indirectly, (i) the Adversary Proceeding, (ii) the BPL
Policy and all claims for coverage thereunder that have been made,
or could in the future be made, by the Company or any Insured,
(iii) the Massachusetts Litigation, certain other lawsuits
identified in the Settlement Agreement, and the NAACP lawsuit; and
(iv) the Company's and FRC's claims for coverage under the CGL
Policy for the NAACP lawsuit. The precise terms of the release
are set forth in the Settlement Agreement.
On June 24, 2010, the Company received from Federal the Settlement
Payment.
About Fremont General
Based in Santa Monica, California, Fremont General Corp. (OTC:
FMNTQ) -- http://www.fremontgeneral.com/-- was a financial
services holding company with $8.8 billion in total assets at
September 30, 2007. Fremont General ceased being a financial
services holding company on July 25, 2008, when its wholly owned
bank subsidiary, Fremont Reorganizing Corporation (f/k/a Fremont
Investment & Loan) completed the sale of its assets, including all
of its 22 branches, and 100% of its $5.2 billion of deposits to
CapitalSource Bank.
Fremont General filed for Chapter 11 protection on June 18, 2008,
(Bankr. C.D. Calif. Case No. 08-13421). Robert W. Jones, Esq.,
and J. Maxwell Tucker, Esq., at Patton Boggs LLP, Theodore
Stolman, Esq., Scott H. Yun, Esq., and Whitman L. Holt, Esq., at
Stutman Treister & Glatt, represent the Debtor as counsel.
Kurtzman Carson Consultants LLC is the Debtor's noticing
agent and claims processor. Lee R. Bogdanoff, Esq., Jonathan S.
Shenson, Esq., and Brian M. Metcalf, at Klee, Tuchin, Bogdanoff &
Stern LLP, represent the Official Committee of Unsecured
Creditors as counsel. Fremont's formal schedules showed
$330,036,435 in total assets and $326,560,878 in total debts.
Fremont General Corporation emerged from bankruptcy and filed
Amended and Restated Articles of Incorporation with the Secretary
of State of Nevada on June 11, 2010, which, among other things,
changed the Debtor's name to Signature Group Holdings, Inc.
Signature's plan of reorganization became effective on June 11,
2010. As of that date Fremont General changed its name to
Signature Group Holdings, Inc.
FREESCALE SEMICON: Bank Debt Trades at 12% Off in Secondary Market
------------------------------------------------------------------
Participations in a syndicated loan under which Freescale
Semiconductor, Inc., is a borrower traded in the secondary market
at 87.56 cents-on-the-dollar during the week ended Friday, July 2,
2010, according to data compiled by Loan Pricing Corp. and
reported in The Wall Street Journal. This represents a drop of
1.05 percentage points from the previous week, The Journal
relates. The Company pays 425 basis points above LIBOR to borrow
under the facility. The bank loan matures on Feb. 16, 2016, and
carries Moody's B2 rating and Standard & Poor's B- rating. The
debt is one of the biggest gainers and losers among 191 widely
quoted syndicated loans with five or more bids in secondary
trading for the week ended Friday.
Freescale Semiconductor, Inc. -- http://www.freescale.com/-- once
Motorola's Semiconductor Products Sector, is one of the oldest and
most diverse makers of microchips in the world. It produces many
different kinds of chips for use in automobiles, computers,
industrial equipment, wireless communications and networking
equipment, and other applications. The company's global client
roster includes such blue-chip companies as Alcatel-Lucent, Bosch,
Cisco Systems, Fujitsu, Hewlett-Packard, QUALCOMM, and Siemens, as
well as former parent Motorola. Freescale nets about half of its
sales from the Asia/Pacific region. The Blackstone Group, The
Carlyle Group, Permira Advisers, and TPG Capital own the company.
FURNITURE WORLD: Case Summary & 20 Largest Unsecured Creditors
--------------------------------------------------------------
Debtor: Furniture World, Inc.
P.O. Box 65949
Albuquerque, NM 87193-5949
Bankruptcy Case No.: 10-13292
Chapter 11 Petition Date: June 30, 2010
Court: United States Bankruptcy Court
New Mexico (Albuquerque)
Judge: James S. Starzynski
Debtor's Counsel: Louis Puccini, Jr., Esq.
Puccini Law, P.A.
P.O. Box 50700
Albuquerque, NM 87181-0700
Tel: (505) 255-0202
Fax: (505) 255-8726
E-mail: puccinilaw@puccinilaw.com
Estimated Assets: $500,001 to $1,000,000
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/nmb10-13292.pdf
The petition was signed by M. Scott Mitchell, president.
GATEHOUSE MEDIA: Bank Debt Trades at 60% Off in Secondary Market
----------------------------------------------------------------
Participations in a syndicated loan under which GateHouse Media,
Inc., is a borrower traded in the secondary market at 40.08 cents-
on-the-dollar during the week ended Friday, July 2, 2010,
according to data compiled by Loan Pricing Corp. and reported in
The Wall Street Journal. This represents a drop of 1.24
percentage points from the previous week, The Journal relates.
The Company pays 200 basis points above LIBOR to borrow under the
facility. The bank loan matures on Feb. 27, 2014, and carries
Moody's Ca rating and Standard & Poor's CCC- rating. The debt is
one of the biggest gainers and losers among 191 widely quoted
syndicated loans with five or more bids in secondary trading for
the week ended Friday.
GateHouse Media Inc. released its full-year 2009 results,
reporting a net loss of $530.6 million for the year ended Dec. 31,
2009, from a net loss of $673.3 million in 2008.
Total reported revenues were $150.2 million for the fourth
quarter, a decline of 10.3% over the prior year. The decline in
same-store revenue was driven primarily by print local and
classified advertising categories, which were down 10.2% and
16.6%, respectively. Circulation revenues declined 3.6% for the
quarter on a same-store basis. Commercial printing and other
revenues declined 23.1% in the quarter on a same-store basis.
The Company's balance sheet at Dec. 31, 2009, showed
$591.2 million in assets and $1.3 billion in liabilities,
resulting to a $753.0 million stockholders' deficit.
GateHouse Media, Inc. -- http://www.gatehousemedia.com/--
headquartered in Fairport, New York, is one of the largest
publishers of locally based print and online media in the United
States as measured by its 97 daily publications. GateHouse Media
currently serves local audiences of more than 10 million per week
across 21 states through hundreds of community publications and
local Web sites.
GENERAL GROWTH: Claims Objection Deadline Extended to September 8
-----------------------------------------------------------------
About 10,000 proofs of claim with an asserted value of more than
$250 billion were filed in Chapter 11 cases of General Growth
Properties, Inc. and its debtor affiliates.
As of June 2, 2010, the Debtors have resolved, expunged or are
preparing objections to nearly two-thirds of the Filed Claims.
There are about 3,454 remaining claims that require further review
and ongoing negotiation with creditors, including accounts payable
claims executory contract or insurance claims, tax claims, secured
debt claims, employee claims, tenant and anchor tenant claims,
litigation claims and mechanics' lien claims.
In connection, the deadline for the Debtors to object to claims
under the Joint Plan of Reorganization that have been confirmed is
June 30, 2010. However, the Debtors believe that additional time
is necessary to complete the resolution process and determine the
appropriate mechanism for resolving disputed claims.
Accordingly, the Debtors sought and obtained an extension of the
Claims Objection Deadline to September 28, 2010.
Adam P. Strochak, Esq., at Weil, Gotshal & Manges LLP, in New
York, relates that the Debtors' reorganization has proceeded, and
continues to proceed, at an extraordinarily fast pace. Given the
size and complexity of the Debtors' Chapter 11 cases and the
volume of claims filed, it is necessary that the Debtors have the
additional time required to fully review and reconcile all claims
in the most efficient and cost-effective manner, he stresses.
The proposed extension will also minimize the financial and
administrative burden on the Court, the creditors and the Debtors'
estates by reducing the number of claim disputes that need to be
resolved and providing the time necessary for the Debtors to
coordinate the claims resolution process efficiently rather than
rushing to file claim objections as the rolling deadlines under
the Confirmed Plans approach, he maintains.
About General Growth
Based in Chicago, Illinois, General Growth Properties, Inc. --
http://www.ggp.com/-- is the second-largest U.S. mall owner,
having ownership interest in, or management responsibility for,
more than 200 regional shopping malls in 44 states, as well as
ownership in master planned community developments and commercial
office buildings. The Company's portfolio totals roughly
200 million square feet of retail space and includes more than
24,000 retail stores nationwide. General Growth is a self-
administered and self-managed real estate investment trust. The
Company's common stock is trading in the pink sheets under the
symbol GGWPQ.
General Growth Properties Inc. and its affiliates filed for
Chapter 11 on April 16, 2009 (Bankr. S.D.N.Y., Case No.
09-11977). Marcia L. Goldstein, Esq., Gary T. Holtzer, Esq.,
Adam P. Strochak, Esq., and Stephen A. Youngman, Esq., at Weil,
Gotshal & Manges LLP, have been tapped as bankruptcy counsel.
Kirkland & Ellis LLP is co-counsel. Kurtzman Carson Consultants
LLC has been engaged as claims agent. The Company also hired
AlixPartners LLP as financial advisor and Miller Buckfire Co. LLC,
as investment bankers. The Debtors disclosed $29,557,330,000 in
assets and $27,293,734,000 in debts as of December 31, 2008.
Bankruptcy Creditors' Service, Inc., publishes General Growth
Bankruptcy News. The newsletter tracks the Chapter 11 proceeding
undertaken by General Growth Properties Inc. and its various
affiliates. (http://bankrupt.com/newsstand/or 215/945-7000)
GENERAL GROWTH: Wins Approval of Safeco Surety Facility
-------------------------------------------------------
General Growth Properties Inc. received the Court's permission to
enter into a postpetition surety facility and assume an indemnity
agreement with Safeco Insurance Company of America.
Before the Petition Date, Safeco issued various surety bonds to
certain of the Debtors. The Safeco Prepetition Bonds enabled the
Debtors to comply with the licensing requirements of state and
local governments, and other contractual obligations with third
parties that are required for certain of the Debtors' business
operations. The aggregate penal amount of all of the bonds
issued by Safeco for the Debtors as of the Petition Date was
$33,846,567.
In January 2005, GGP and certain of its subsidiaries and
affiliates executed a general agreement of indemnity in favor of
Safeco. Under the GGP Indemnity Agreement, the Debtors agree to
pay to Safeco these sums:
(a) all loss and expense, including reasonable attorneys'
fees;
(b) an amount sufficient to discharge any claim made against
Safeco on the Safeco Prepetition Bonds; and
(c) all premiums due for the Safeco Prepetition Bonds until
the time as Safeco is discharged from liability under the
Safeco Prepetition Bonds.
By an agreement in December 2008, GGP agreed to post $4 million
in cash collateral with Safeco in consideration of Safeco's
agreement to continue to provide surety credit and keep the
Safeco Prepetition Bonds in effect. GGP paid $3 million of the
cash collateral in December 2008 and the remaining $1 million in
January 2009.
In December 2009, Safeco filed a request seeking relief from the
automatic stay to permit cancellation of the Safeco Prepetition
Surety Bonds asserting that the bonds are financial
accommodations that cannot be assumed by the Debtors.
To resolve the issues between the parties, the Debtors and Safeco
entered into the Surety Facility, the salient terms of which are:
* Safeco will hold cash collateral of the lesser of 25% of the
aggregate penal sum of the Safeco Prepetition Bonds or
$2,585,469 -- the Collateral Balance -- from which it will
reduce reasonable attorneys' fees, costs and expenses
incurred by Safeco in the Debtors' Chapter 11 cases before
the date of entry an order on the Surety Facility. The
principals of the Safeco Prepetition Bonds and their
indemnitors will replenish collateral, as it is used, to
maintain the Collateral Balance.
* In consideration of the Surety Facility and Safeco's
agreement to issue two performance bonds for $700,000 and
$1,300,000 on behalf of HRD, a non-debtor subsidiary of GGP,
the Debtors or HRD are required to post cash or cash
equivalent collateral in the amount of 25% of the penal
amounts of those two bonds -- HRD Collateral.
* Safeco will provide additional surety credit to non-debtor
subsidiaries of the Debtors, up to an aggregate amount of
$5 million of bonds, which aggregate amount includes the bonds
issued on behalf of HRD, provided that the Debtors or that
subsidiary for which the bond is issued, post collateral in
an amount of 85% of the penal amount of the bond or bonds
issued, or lesser amount of collateral with the amount of
that collateral to be determined in accordance with Safeco's
usual and customary underwriting standards. Safeco reserves
the right to decline to issue any bond or bonds requested in
accordance with Safeco's customary underwriting practices.
* GGP will assume the GGP Indemnity Agreement and HRD will
enter into an indemnity agreement with Safeco upon terms
substantially similar to the GGP Indemnity Agreement.
* The Collateral Balance and the Postpetition Collateral can
be used by Safeco to any losses incurred on any of the bonds
issued on behalf of the Debtors and for any obligations of
the Debtors arising under the GGP Indemnity Agreement. The
collateral securing Non-Debtor Bonds will apply only to
secure those Non-Debtor Bonds, and the HRD Collateral will
apply only to the HRD Bonds.
* Safeco will release the collateral posted by GGP or the
Debtors to it in accordance with the Surety Facility.
* Safeco will keep the Safeco Prepetition Bonds in effect for
a period of 18 months after the date of the order approving
Surety Facility, and will not take any action, whether
directly or indirectly, to cancel or terminate those bonds
unless the Debtors request any Safeco Prepetition Bond be
cancelled or not renewed.
* The Debtors will waive their right to bring an action under
Section 544, 547, or 548 of the Bankruptcy Code relating to
the Prepetition Collateral or the Collateral Balance.
* Safeco will be entitled to an administrative expense claim
under Section 503(b) of the Bankruptcy Code, against the
Debtor that is a principal of a Safeco Prepetition Bond or
Safeco Postpetition Bond for any losses, expenses or fees
Safeco incurs arising from the failure of any party
providing indemnity agreement to Safeco under the Surety
Facility to fulfill their indemnity obligations to Safeco.
* In the event of a failure to maintain the Collateral
Balance, Safeco will be entitled to a priority claim under
Section 507(b) of the Bankruptcy Code against GGP should the
failure of GGP to maintain the Collateral Balance gives rise
to surety losses.
* The automatic stay is modified solely to permit Safeco to
pursue remedies after an Event of Default that remains
uncured as provided in the Surety Facility.
Stephen Youngman, Esq., at Weil, Gotshal & Manges LLP, in New
York, stresses that if Safeco canceled the bonds and returned the
cash collateral to the Debtors, the Debtors would be required to
seek surety credit from another company that could require
additional collateral and other terms more burdensome to the
Debtors than the terms proposed by Safeco. He insists that the
continuation and implementation of the Surety Facility is the
most cost effective and administratively efficient alternative
available to the Debtors.
About General Growth
Based in Chicago, Illinois, General Growth Properties, Inc. --
http://www.ggp.com/-- is the second-largest U.S. mall owner,
having ownership interest in, or management responsibility for,
more than 200 regional shopping malls in 44 states, as well as
ownership in master planned community developments and commercial
office buildings. The Company's portfolio totals roughly
200 million square feet of retail space and includes more than
24,000 retail stores nationwide. General Growth is a self-
administered and self-managed real estate investment trust. The
Company's common stock is trading in the pink sheets under the
symbol GGWPQ.
General Growth Properties Inc. and its affiliates filed for
Chapter 11 on April 16, 2009 (Bankr. S.D.N.Y., Case No.
09-11977). Marcia L. Goldstein, Esq., Gary T. Holtzer, Esq.,
Adam P. Strochak, Esq., and Stephen A. Youngman, Esq., at Weil,
Gotshal & Manges LLP, have been tapped as bankruptcy counsel.
Kirkland & Ellis LLP is co-counsel. Kurtzman Carson Consultants
LLC has been engaged as claims agent. The Company also hired
AlixPartners LLP as financial advisor and Miller Buckfire Co. LLC,
as investment bankers. The Debtors disclosed $29,557,330,000 in
assets and $27,293,734,000 in debts as of December 31, 2008.
Bankruptcy Creditors' Service, Inc., publishes General Growth
Bankruptcy News. The newsletter tracks the Chapter 11 proceeding
undertaken by General Growth Properties Inc. and its various
affiliates. (http://bankrupt.com/newsstand/or 215/945-7000)
GENERAL GROWTH: Deloitte Work to Include Reissuance Services
------------------------------------------------------------
Gneral Growth Properties Inc. and its units seek the Court's
permission to expand Deloitte & Touche LLP's scope of services to
include audit and report reissuance services.
As the Debtors' independent auditor, Deloitte & Touche will
perform these additional services:
(A) Financial Statement Auditing Services:
Deloitte & Touche will perform financial statement audits for
certain of the Debtors' subsidiaries in accordance with the
standards of the Public Company Accounting Oversight Board,
and will express opinions on the fairness of the presentation
of combined financial statements as of December 31, 2009 and
2008 and for the years ended December 31, 2009, 2008, and
2007, in conformity with generally accepted accounting
principles in all material respects.
B. Reissuance Services:
(a) Deloitte & Touche will perform procedures to enable the
firm to reissue its previous reports regarding the
Debtors' consolidated financial statements and financial
statement schedules, for incorporation by reference in
certain registration statements the Debtors anticipate
filing with the U.S. Securities and Exchange Commission.
-- These procedures will provide Deloitte & Touche with a
basis for reissuing its reports of independent
registered public accounting firm on the Debtors'
consolidated financial statements and financial
statement schedule as of December 31, 2009 and 2008,
and for each of the three years in the period ended
December 31, 2009; and
-- Deloitte & Touche will make inquiries of officers and
other executives responsible for financial and
accounting matters about whether any events have
occurred that, in the officers' or other executives'
opinion, have a material effect on the audited
consolidated financial statements and financial
statement schedule included or that should be disclosed
to keep those consolidated financial statements and
financial statement schedule from being misleading.
(b) Deloitte & Touche will also perform reviews of the
Debtors' interim consolidated financial information in
accordance with PCAOB Standards for the three-month
periods ended March 31, 2010 and 2009 and the three-month
and six-month periods ended June 30, 2010 and 2009,
prepared for submission to the SEC.
The Debtors also seek that Deloitte & Touche's retention be made
effective, nunc pro tunc to March 1, 2010, to allow the firm to
be compensated for work performed on or after March 1, 2010, but
prior to June 29, 2010.
General Growth Properties, Inc. vice president and deputy general
Linda J. Wight relates that since March 1, 2010, Deloitte & Touche
has been actively involved in assisting the Debtors by continuing
ongoing projects and providing the services set forth in the
Engagement Letters. The value of those time-sensitive services
that have been rendered by Deloitte & Touche is $720,000, she
discloses.
The Debtors will pay Deloitte & Touche's professionals according
to their customary hourly rates for the Additional Services with
a 35% discount rate applied for all levels:
Standard Discounted
Title Rate per Hour Rate per Hour
----- ------------- -------------
Partner/Director $730 to $875 $478 to $569
Senior Manager $540 to $760 $351 to $494
Manager $540 to $655 $351 to $426
Senior $400 to $530 $260 to $345
Staff $300 to $400 $195 to $260
The Debtors will reimburse Deloitte & Touche for expenses
incurred.
Robert T. O'Brien, a partner at Deloitte & Touche, maintains that
his firm is a "disinterested person" as the term is defined in
Section 101(14) of the Bankruptcy Code.
About General Growth
Based in Chicago, Illinois, General Growth Properties, Inc. --
http://www.ggp.com/-- is the second-largest U.S. mall owner,
having ownership interest in, or management responsibility for,
more than 200 regional shopping malls in 44 states, as well as
ownership in master planned community developments and commercial
office buildings. The Company's portfolio totals roughly
200 million square feet of retail space and includes more than
24,000 retail stores nationwide. General Growth is a self-
administered and self-managed real estate investment trust. The
Company's common stock is trading in the pink sheets under the
symbol GGWPQ.
General Growth Properties Inc. and its affiliates filed for
Chapter 11 on April 16, 2009 (Bankr. S.D.N.Y., Case No.
09-11977). Marcia L. Goldstein, Esq., Gary T. Holtzer, Esq.,
Adam P. Strochak, Esq., and Stephen A. Youngman, Esq., at Weil,
Gotshal & Manges LLP, have been tapped as bankruptcy counsel.
Kirkland & Ellis LLP is co-counsel. Kurtzman Carson Consultants
LLC has been engaged as claims agent. The Company also hired
AlixPartners LLP as financial advisor and Miller Buckfire Co. LLC,
as investment bankers. The Debtors disclosed $29,557,330,000 in
assets and $27,293,734,000 in debts as of December 31, 2008.
Bankruptcy Creditors' Service, Inc., publishes General Growth
Bankruptcy News. The newsletter tracks the Chapter 11 proceeding
undertaken by General Growth Properties Inc. and its various
affiliates. (http://bankrupt.com/newsstand/or 215/945-7000)
GENERAL MOTORS: In Talks for $5-Bil. Financing as IPO Looms
-----------------------------------------------------------
The Wall Street Journal's Sharon Terlep reports people familiar
with the situation said that General Motors Co. is in talks with
major banks to set up a $5 billion line of credit as it works to
convince potential investors it can function without government
support. According to the report, GM is in talks with several
major banks on the revolving credit, including Morgan Stanley and
JPMorgan Chase & Co., both of which have been tapped for lead
roles in the auto maker's stock sale.
The Journal notes a revolving credit facility, which allows a
company to borrow for any reason, would bolster GM's balance sheet
and provide a financial cushion should the company's recovery
plans hit a snag.
According to the Journal, the bank talks come as GM nears an
initial public offering of shares, which could come in the fourth
quarter. GM is on an all-out campaign to pitch itself as a
reinvented company capable of delivering sustainable profits. A
stock sale would allow the U.S. government, GM's biggest
shareholder, to begin reducing its about 61% stake in the Detroit
auto maker.
The Journal relates GM Finance chief Chris Liddell last week told
a gathering of potential investors and auto analysts that the
company aims to eliminate all debt and achieve an investment-grade
credit rating. He didn't provide a time frame. He said GM has
about $42.2 billion in outstanding debt and pension liabilities.
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 US$136.021 billion in total assets,
total liabilities of US$105.970 billion and preferred stock of
US$6.998 billion, and non-controlling interests of US$814 million,
resulting in total equity of US$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)
GHULAM MOHAMMADI: Case Summary & 14 Largest Unsecured Creditors
---------------------------------------------------------------
Joint Debtors: Ghulam Mohammad Mohammadi
Zarefa Aziz
5430 Woodleaf Court
Concord, CA 94521
Bankruptcy Case No.: 10-47357
Chapter 11 Petition Date: June 29, 2010
Court: U.S. Bankruptcy Court
Northern District of California (Oakland)
Judge: Randall J. Newsome
Debtor's Counsel: Mark A. McLaughlin, Esq.
Law Offices of McLaughlin and Wildman
3012 Lone Tree Way #300
Antioch, CA 94509
Tel: (925) 754-2622
E-mail: nmclaug226@sbcglobal.net
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
According to the schedules, the Debtors say that assets total
$3,052,799 while debts total $ 5,756,042.
A copy of the Debtors' list of 14 largest unsecured creditors
filed together with the petition is available for free at
http://bankrupt.com/misc/canb10-47357.pdf
The petition was signed by the Joint Debtors.
GLENN SWANSON: Case Summary & 7 Largest Unsecured Creditors
-----------------------------------------------------------
Debtor: Glenn Michael Swanson
1354 Carlos Place
Ontario, CA 91764
Bankruptcy Case No.: 10-30085
Chapter 11 Petition Date: June 29, 2010
Court: U.S. Bankruptcy Court
Central District of California (Riverside)
Judge: Meredith A. Jury
Debtor's Counsel: Robert S. Altagen, Esq.
Law Offices of Robert S Altagen
1111 Corporate Center Drive #201
Monterey Park, CA 91754
Tel: (323) 268-9588
Fax: (323) 268-8742
E-mail: rsaink@earthlink.net
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
According to the schedules, the Debtor says that assets total
$1,070,250 while debts total $1,917,570.
A copy of the Debtor's list of 7 largest unsecured creditors filed
together with the petition is available for free at
http://bankrupt.com/misc/cacb10-30085.pdf
The petition was signed by the Debtor.
GPX INTERNATIONAL: Plan Confirmation Hearing Set for July 21
------------------------------------------------------------
The Hon. Joan N. Feeney of the U.S. Bankruptcy Court for the
District of Massachusetts will consider on July 21, 2010, at
11:15 a.m., the confirmation of GPX International Tire Corp.'s
amended Plan of Liquidation. The hearing will be held at
Courtroom 1, 12th Floor, J.W. McCormack Post Office & Court House,
5 Post Office Square, Boston, Massachusetts. Objections, if any,
are due on July 12, at 4:30 p.m.
As reported in the Troubled Company Reporter on May 11, according
to the Disclosure Statement, the Plan provides for the continued
orderly liquidation of the Debtor's assets. The proceeds of the
liquidation of the Debtor's assets, net costs of collection, will
be paid to the holders of the allowed claims against the Debtor.
Upon the confirmation of the Plan, Craig Jalbert will be appointed
as the liquidation supervisor to continue the liquidation of the
assets and to make distributions to creditors.
Holders of secured claims will receive their collateral or the
proceeds of their collateral. The Debtor and the Committee
anticipate that sufficient funds will be available to make
substantial distribution to the holders of allowed general
unsecured claims.
Type of Claim Plan Treatment Projected Recovery
------------- -------------- ------------------
Secured Parties Claim Paid in accordance 53.5%
with Court approved
settlement agreement
Other Secured Claims Paid in full or return 100%
of collateral
Other Priority Claims Paid full in cash 100%
Gen. Unsecured Claims Paid pro rata from 20% to 53.2%
Plan fund
Secured Parties Paid in accordance No recovery
with Court approved
settlement agreement
Equity Interests Payment only if classes No recovery
of senior claims paid in
full.
A full-text copy of the amended Disclosure Statement is available
for free at:
http://bankrupt.com/misc/GPXInternational_AmendedDS.pdf
About GPX International
GPX International Tire Corporation was one of the largest
independent global providers of specialty "off-the-road" tires for
the agricultural, construction, materials handling and
transportation industries. GPX is a worldwide company,
headquartered in Malden, Massachusetts, with operations in
NorthAmerica, China, Canada, and Germany. A third generation
family-owned business, GPX and its predecessor companies have been
in business since 1922.
GPX International filed for Chapter 11 on Oct. 26, 2009 (Bankr. D.
Mass. Case No. 09-20170). GPX is represented in U.S. Bankruptcy
Court by attorneys Harry Murphy of Hanify & King, P.C., and Peggy
Farrell of Hinckley Allen & Snyder LLP as corporate counsel. TM
Capital Corp. serves as investment banker to GPX in connection
with these transactions and Argus Management Corporation serves as
restructuring advisor to GPX. The petition says assets and debts
range from $100 million to $500 million.
GR HOSPITALITY: Voluntary Chapter 11 Case Summary
-------------------------------------------------
Debtor: GR Hospitality Management, LLC
dba Best Western Graham
1707 Highway 16 South
Graham, TX 76450
Bankruptcy Case No.: 10-34474
Chapter 11 Petition Date: June 30, 2010
Court: United States Bankruptcy Court
Northern District of Texas (Dallas)
Judge: Barbara J. Houser
Debtor's Counsel: Arthur I. Ungerman, Esq.
Tel: (972) 239-9055
Fax: (972) 239-9886
E-mail: arthur@arthurungerman.com
Joyce W. Lindauer, Esq.
Tel: (972) 503-4033
Fax: (972) 503-4034
E-mail: courts@joycelindauer.com
One Glen Lakes Tower
8140 Walnut Hill Ln., Suite 301
Dallas, TX 75231
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
The Debtor did not file a list of its largest unsecured creditors
together with its petition.
The petition was signed by Kirnbir S. Grewal, president.
GRAY TELEVISION: Files 2009 Annual Report for Accumulation Plan
---------------------------------------------------------------
Gray Television, Inc. filed with the Securities and Exchange
Commission an annual report on Form 11-K for Gray Television, Inc.
Capital Accumulation Plan for the year ended December 31, 2009.
Net assets available for benefits at December 31, 2009, total
$49,814,920.
A full-text copy of the Form 11-K report is available at no charge
at http://ResearchArchives.com/t/s?65ce
About Gray Television
Gray Television, Inc. (NYSE: GTN) -- http://www.gray.tv/-- is a
television broadcast company headquartered in Atlanta, Georgia.
Gray currently operates 36 television stations serving 30 markets.
Each of the stations are affiliated with either CBS (17 stations),
NBC (10 stations), ABC (8 stations) or FOX (1 station). In
addition, Gray currently operates 39 digital second channels
including 1 ABC, 4 FOX, 7 CW, 18 MyNetworkTV, 2 Universal Sports
Network affiliates and 7 local news/weather channels in certain of
its existing markets.
As of March 31, 2010, the Company had total assets of
$1.235 billion against total liabilities of $1.053 billion and
preferred stock of $93.687 million, resulting in stockholders'
equity of $88.140 million.
* * *
As reported by the Troubled Company Reporter on May 5, 2010,
Standard & Poor's Ratings Services raised its corporate credit
rating on Gray to 'B-' from 'CCC'. S&P removed the rating from
CreditWatch, where it was placed with positive implications on
April 20, 2010. The rating outlook is stable.
The TCR on April 22, 2010, reported that Moody's Investors Service
assigned a Caa2 rating to the proposed $365 million issuance of
guaranteed senior secured second lien notes due 2015 by Gray
Television. At the same time, Moody's upgraded its Probability of
Default Rating and Speculative Grade Liquidity Rating for the
company, to Caa1 from Caa2 and to SGL-2 from SGL-4, respectively.
Gray's Caa1 Corporate Family Rating remains unchanged.
GRAY TELEVISION: Director Richard Lee Boger Sells 3,000 Shares
--------------------------------------------------------------
Gray Television Inc. director Richard Lee Boger disclosed selling
3,000 Company shares on June 28, 2010. He may be deemed to
directly own 31,770 shares after the deal.
Mr. Boger also disclosed that 4,000 shares that he indirectly owns
were sold. He may be deemed to indirectly own 6,171 shares after
the deal.
Mr. Boger also holds 3,736 of Gray Television Class A Common
Stock.
About Gray Television
Gray Television, Inc. (NYSE: GTN) -- http://www.gray.tv/-- is a
television broadcast company headquartered in Atlanta, Georgia.
Gray currently operates 36 television stations serving 30 markets.
Each of the stations are affiliated with either CBS (17 stations),
NBC (10 stations), ABC (8 stations) or FOX (1 station). In
addition, Gray currently operates 39 digital second channels
including 1 ABC, 4 FOX, 7 CW, 18 MyNetworkTV, 2 Universal Sports
Network affiliates and 7 local news/weather channels in certain of
its existing markets.
As of March 31, 2010, the Company had total assets of
$1.235 billion against total liabilities of $1.053 billion and
preferred stock of $93.687 million, resulting in stockholders'
equity of $88.140 million.
* * *
As reported by the Troubled Company Reporter on May 5, 2010,
Standard & Poor's Ratings Services raised its corporate credit
rating on Gray to 'B-' from 'CCC'. S&P removed the rating from
CreditWatch, where it was placed with positive implications on
April 20, 2010. The rating outlook is stable.
The TCR on April 22, 2010, reported that Moody's Investors Service
assigned a Caa2 rating to the proposed $365 million issuance of
guaranteed senior secured second lien notes due 2015 by Gray
Television. At the same time, Moody's upgraded its Probability of
Default Rating and Speculative Grade Liquidity Rating for the
company, to Caa1 from Caa2 and to SGL-2 from SGL-4, respectively.
Gray's Caa1 Corporate Family Rating remains unchanged.
GRAY TELEVISION: Delays Exchange Offer for 10-1/2% Notes
--------------------------------------------------------
Gray Television, Inc., is delaying an offer to exchange up to
$365,000,000 Aggregate Principal Amount of Newly Issued 10-1/2%
Senior Secured Second Lien Notes due 2015 for a Like Principal
Amount of Outstanding Restricted 10-1/2% Senior Secured Second
Lien Notes due 2015 Issued in April 2010.
No expiration date has been set for the Exchange Offer.
On April 29, 2010, Gray Television issued $365.0 million aggregate
principal amount of restricted 10-1/2% Senior Secured Second Lien
Notes due 2015 in a private placement exempt from the registration
requirements under the Securities Act of 1933.
The terms of the exchange notes are substantially identical to the
terms of the original notes, except that the exchange notes will
be issued in a transaction registered under the Securities Act,
and the transfer restrictions and registration rights and related
special interest provisions applicable to the original notes will
not apply to the exchange notes. The exchange notes will be
exchanged for original notes in denominations of $2,000 and
integral multiples of $1,000 in excess thereof. Gray Television
will not receive any proceeds from the issuance of exchange notes
in the exchange offer.
Gray Television filed with the Securities and Exchange Commission
a Form S-4 Registration Statement under the Securities Act of
1933. A full-text copy of the registration statement is available
at no charge at http://ResearchArchives.com/t/s?65cf
About Gray Television
Gray Television, Inc. (NYSE: GTN) -- http://www.gray.tv/-- is a
television broadcast company headquartered in Atlanta, Georgia.
Gray currently operates 36 television stations serving 30 markets.
Each of the stations are affiliated with either CBS (17 stations),
NBC (10 stations), ABC (8 stations) or FOX (1 station). In
addition, Gray currently operates 39 digital second channels
including 1 ABC, 4 FOX, 7 CW, 18 MyNetworkTV, 2 Universal Sports
Network affiliates and 7 local news/weather channels in certain of
its existing markets.
As of March 31, 2010, the Company had total assets of $1.235
billion against total liabilities of $1.053 billion and preferred
stock of $93.687 million, resulting in stockholders' equity of
$88.140 million.
* * *
As reported by the Troubled Company Reporter on May 5, 2010,
Standard & Poor's Ratings Services raised its corporate credit
rating on Gray to 'B-' from 'CCC'. S&P removed the rating from
CreditWatch, where it was placed with positive implications on
April 20, 2010. The rating outlook is stable.
The TCR on April 22, 2010, reported that Moody's Investors Service
assigned a Caa2 rating to the proposed $365 million issuance of
guaranteed senior secured second lien notes due 2015 by Gray
Television. At the same time, Moody's upgraded its Probability of
Default Rating and Speculative Grade Liquidity Rating for the
company, to Caa1 from Caa2 and to SGL-2 from SGL-4, respectively.
Gray's Caa1 Corporate Family Rating remains unchanged.
GRAY TELEVISION: Eleven Directors Elected to Board
--------------------------------------------------
Gray Television's annual meeting of shareholders was held on
June 23, 2010. The shareholders elected 11 directors to serve
until the annual meeting of shareholders in 2011 or until their
successors have been duly elected and qualified. The results
follow:
* Richard L. Boger
* Ray M. Deaver
* T.L. Elder
* Hilton H. Howell, Jr.
* William E. Mayher, III
* Zell B. Miller
* Howell W. Newton
* Hugh E. Norton
* Robert S. Prather, Jr.
* Harriett J. Robinson
* J. Mack Robinson
About Gray Television
Gray Television, Inc. (NYSE: GTN) -- http://www.gray.tv/-- is a
television broadcast company headquartered in Atlanta, Georgia.
Gray currently operates 36 television stations serving 30 markets.
Each of the stations are affiliated with either CBS (17 stations),
NBC (10 stations), ABC (8 stations) or FOX (1 station). In
addition, Gray currently operates 39 digital second channels
including 1 ABC, 4 FOX, 7 CW, 18 MyNetworkTV, 2 Universal Sports
Network affiliates and 7 local news/weather channels in certain of
its existing markets.
* * *
As reported by the Troubled Company Reporter on May 5, 2010,
Standard & Poor's Ratings Services raised its corporate credit
rating on Gray to 'B-' from 'CCC'. S&P removed the rating from
CreditWatch, where it was placed with positive implications on
April 20, 2010. The rating outlook is stable.
The TCR on April 22, 2010, reported that Moody's Investors Service
assigned a Caa2 rating to the proposed $365 million issuance of
guaranteed senior secured second lien notes due 2015 by Gray
Television. At the same time, Moody's upgraded its Probability of
Default Rating and Speculative Grade Liquidity Rating for the
company, to Caa1 from Caa2 and to SGL-2 from SGL-4, respectively.
Gray's Caa1 Corporate Family Rating remains unchanged.
GREEKTOWN HOLDINGS: Obtains Gaming Board Nod, Exits Bankruptcy
--------------------------------------------------------------
The Second Amended Joint Plans of Reorganization for Greektown
Holdings LLC and five of its debtor affiliates proposed by
certain noteholder entities, the Official Committee of Unsecured
Creditors of the Debtors, and Deutsche Bank Trust Company
Americas, as indenture trustee, has been declared effective on
June 30, 2010.
The Company was able to beat a court-mandated June 30 deadline to
exit bankruptcy.
Greektown Casino Hotel clinched its way to the June 30 finish
line when it obtained a unanimous approval from the Michigan
Gaming Control Board on June 28, 2010, of the transfer of the
Company's ownership from the Sault Ste. Marie Tribe of Chippewa
Indian to new investors. The MGCB voted 4-0 on the matter at a
special meeting held on the same day, The Detroit News reported.
The new owners of Greektown Casino include 10 hedge funds and
mutual funds, The Detroit News cited. Among the largest hedge
funds investing in Greektown Casino are MFC Global Investment
Management, Oppenheimer Funds Inc., Brigade Capital Management,
Manulife Global Fund U.S. Bond Fund, and Solus Alternative Asset
Management. The Funds are among the noteholder entities that put
together the Bankruptcy Court-confirmed Chapter 11 plan for
Greektown Casino.
The Funds were granted "institutional exemption" from MGCB's
licensing application because they have too many partners to
individually approve, according to The Detroit News.
The MGCB were previously in a dilemma in approving the ownership
transfer of the Company to the Funds as hedge funds are not
mentioned in the state of Michigan licensing law for
institutional investors. The Michigan law requires any investor
with more than 5% ownership stake to be licensed or get an
exemption.
Bankruptcy Judge Walter Shapero for the Eastern District of
Michigan confirmed the Greektown Casino plan on January 22, 2010.
By virtue of the Plan confirmation, Greektown Casino is
discharged from all debts and claims that arose before and up to
the entry of the Confirmation Order, among others.
New Holding Company, New Board
Upon its exit from bankruptcy, Greektown Casino will be jointly
owned by a public company called Greektown Superholdings Inc.,
and its private counterpart, Greektown Newco Sub Inc.
The new owners of Greektown Casino have raised $200 million in
equity by selling shares of preferred stock, according to The
Detroit News.
George Boyer, the former chief operating officer of MGM Grand
Detroit, will head New Greektown's board of directors as
chairman.
John Bitove and Yvette Landau have been appointed to the Board,
too. Mr. Bitove is a radio and sports investor in Toronto. Ms.
Landau served as chief legal counsel for the Mandalay Resort
Group from 1993 to 2005.
Crain's Detroit Business relates that persons whose nominations
to the Greektown Board are still under review by the MGCB are:
* Mike Duggan, the chief executive officer of Detroit Medical
Center;
* Benjamin Duster, the executive managing director of
Watermark Advisors LLC;
* Freman Hendrix, the chairman of Detroit's Charter Revision
Commission and deputy mayor under former Detroit Mayor
Dennis Archer; and
* Joel Ferguson, founder of F&S Development Co. and WLAJ-TV of
Lansing, Michigan.
Greektown Casino's Statement
"Greektown's exit from bankruptcy eliminates approximately $500
million in debt," the Company's CEO Cliff Vallier averred in a
statement, according to Crain's Detroit Business.
"I expect that the new capital structure will allow Greektown to
continue to contribute to the local economy and provide guests
with a great experience. I look forward to working with our new
board of directors, which includes experienced industry
executives and community leaders," Mr. Vallier said, Crain's
Detroit Business cited.
According to the statement, "Dechert LLP represented the
proponents of the confirmed plan of reorganization, and Dickinson
Wright PLLC served as regulatory counsel to the plan proponents."
Tribe Laments Casino Ownership Transfer
As Greektown Casino will be turned over its new owners, former
owners Sault Ste. Marie Tribe will no longer have a stake in the
new reorganized company.
Joe McCoy, the chairman of the Sault Ste. Marie Tribe,
distributed a memo to tall Tribe and casino team members, where
he noted his sadness over the MGCB's process of transferring the
casino's ownership.
Under the Memo, Mr. McCoy noted that the MGCB only conducted an
abbreviated background check of the new owners. He also said
that the MCGB abandoned its own rules and the process it used
over the years.
In the Tribe's website, Lana Causley, the Tribe's vice chairman
posted this statement on June 29:
"In a significant and dangerous departure from past practice,
the Michigan Gaming Control Board has chosen to turn a blind
eye to its own rules and abandon how it has traditionally
granted regulatory clearance for people who seek an ownership
stake in a Detroit casino. By approving a transfer of
ownership to people who have not yet passed the background
checks the MGCB has demanded and performed of all previous
owners, the MGCB has set a dangerous precedent and potentially
harmed the integrity of commercial gaming in Michigan."
"The MGCB also has now used a double standard to license
Detroit casino owners."
"While the MGCB conducted throughout background checks on
members of the Sault Tribe, who faced up to two years of
investigation before receiving ownership clearance, the MGCB
now appears willing to approve ownership positions in a matter
of five months for out-of-state bankers who have exceptionally
complicated and extensive business dealings world-wide."
"T[he June 28] decision unjustly applies a double standard
that benefits private hedge funds and out-of-state investors,
and compromises the MGCB's own mission statement to 'protect
the interests of the citizens of the State of Michigan.'"
"We live in the age of Enron scandals, Bernie Madoff and GM
bankruptcies. The notion that a regulatory body would fail to
apply the same strict standards is incomprehensible -- and it
does not seem to us that a sufficiently thorough review could
not have been completed in a few short months."
However, Mr. McCoy related that "now that this decision has been
made, it is time for the Tribe to examine other opportunities we
have to grow our revenue stream securing membership services for
years to come.
Administrative Claims Bar Date, et al.
Several deadlines related to the emergence of Greektown Casino
are reflected in the Company's Effective Date Notice.
All proofs of claim or requests for payment of administrative
claims, including proofs of or requests for payment of any cure,
must be filed on or before August 14, 2010 at 5:00 p.m.
Prevailing Eastern Time.
Bankruptcy professionals retained in the Debtors' cases are also
given until August 14, 2010, at 5:00 p.m. to make their final
requests for the payment of their Administrative Claims for
compensation for services rendered or reimbursement of costs,
expenses, or other charges and disbursements incurred relating to
services rendered or expenses incurred after the Petition Date
through the Plan Effective Date.
In addition, requests for reimbursement of expenses of members of
any official committee created in the Debtors' cases must also be
filed on or before the Administrative Claims Bar Date.
Moreover, any person who seeks compensation or expense
reimbursement for making a substantial contribution in the
Debtors' Chapter 11 Cases pursuant to Section 503(b)(3), (4), or
(5) of the Bankruptcy Code must file an application on or before
the Administrative Claims Bar Date or be forever barred from
seeking compensation or expense reimbursement.
If a claim results from the Debtors' rejection of an executory
contract or unexpired lease, then the claim will be forever
barred unless a Proof of Claim is filed and served within 30 days
after the later of (a) the Plan Effective Date, or (b) notice
that the executory contract or unexpired lease has been rejected,
unless otherwise ordered by the Court.
About Greektown Casino
Based in Detroit, Michigan, Greektown Holdings, LLC, and its
affiliates -- http://www.greektowncasino.com/-- operate world-
class casino gaming facilities located in Detroit's historic
Greektown district featuring more than 75,000 square feet of
casino gaming space with more than 2,400 slot machines, over 70
tables games, a 12,500-square foot salon dedicated to high limit
gaming and the largest live poker room in the metropolitan Detroit
gaming market. Greektown Casino employs approximately 1,971
employees, and estimates that it attracts over 15,800 patrons each
day, many of whom make regular visits to its casino complex and
related properties. In 2007, Greektown Casino achieved a 25.6%
market share of the metropolitan Detroit gaming market. Greektown
Casino has also been rated as the "Best Casino in Michigan" and
"Best Casino in Detroit" numerous times in annual readers' polls
in Detroit's two largest newspapers.
The Company and seven of its affiliates filed for Chapter 11
protection on May 29, 2008 (Bankr. E.D. Mich. Lead Case No.
08-53104). Daniel J. Weiner, Esq., Michael E. Baum, Esq., and
Ryan D. Heilman, Esq., at Schafer and Weiner PLLC, represent the
Debtors in their restructuring efforts. Judy B. Calton, Esq., at
Honigman Miller Schwartz and Cohn LLP, represents the Debtors as
their special counsel. The Debtors chose Conway MacKenzie &
Dunleavy as their financial advisor, and Kurtzman Carson
Consultants LLC as claims, noticing, and balloting agent. Clark
Hill PLC serves as counsel to the Official Committee of Unsecured
Creditors.
Greektown Holdings listed assets and debts of $100 million to
$500 million in its bankruptcy petition.
Bankruptcy Creditors' Service, Inc., publishes Greektown Casino
Bankruptcy News. The newsletter tracks the Chapter 11
proceedings undertaken by Greektown Casino and its various
affiliates. (http://bankrupt.com/newsstand/or 215/945-7000)
GREEKTOWN HOLDINGS: Superholdings Sells $385-Mil. in Notes
----------------------------------------------------------
Greektown Superholdings, Inc. sold $385 million worth of secured
notes in the 144a private placement market on June 25, 2010,
according to Reuters.
The Notes will mature on July 1, 2015.
Goldman Sachs conducted the Sale.
About Greektown Casino
Based in Detroit, Michigan, Greektown Holdings, LLC, and its
affiliates -- http://www.greektowncasino.com/-- operate world-
class casino gaming facilities located in Detroit's historic
Greektown district featuring more than 75,000 square feet of
casino gaming space with more than 2,400 slot machines, over 70
tables games, a 12,500-square foot salon dedicated to high limit
gaming and the largest live poker room in the metropolitan Detroit
gaming market. Greektown Casino employs approximately 1,971
employees, and estimates that it attracts over 15,800 patrons each
day, many of whom make regular visits to its casino complex and
related properties. In 2007, Greektown Casino achieved a 25.6%
market share of the metropolitan Detroit gaming market. Greektown
Casino has also been rated as the "Best Casino in Michigan" and
"Best Casino in Detroit" numerous times in annual readers' polls
in Detroit's two largest newspapers.
The Company and seven of its affiliates filed for Chapter 11
protection on May 29, 2008 (Bankr. E.D. Mich. Lead Case No.
08-53104). Daniel J. Weiner, Esq., Michael E. Baum, Esq., and
Ryan D. Heilman, Esq., at Schafer and Weiner PLLC, represent the
Debtors in their restructuring efforts. Judy B. Calton, Esq., at
Honigman Miller Schwartz and Cohn LLP, represents the Debtors as
their special counsel. The Debtors chose Conway MacKenzie &
Dunleavy as their financial advisor, and Kurtzman Carson
Consultants LLC as claims, noticing, and balloting agent. Clark
Hill PLC serves as counsel to the Official Committee of Unsecured
Creditors.
Greektown Holdings listed assets and debts of $100 million to
$500 million in its bankruptcy petition.
Bankruptcy Creditors' Service, Inc., publishes Greektown Casino
Bankruptcy News. The newsletter tracks the Chapter 11
proceedings undertaken by Greektown Casino and its various
affiliates. (http://bankrupt.com/newsstand/or 215/945-7000)
GREEKTOWN HOLDINGS: Ferguson Considering Offer to Join Board
------------------------------------------------------------
Joel Ferguson, a businessman who also serves as chairman of the
Michigan State University Board of Trustees, is considering an
offer to serve on the board of Greektown Casino upon the
Company's emergence from bankruptcy, The Detroit Free Press
reports.
Michigan state law, which prevents elected officials from serving
on casino boards, may prevent Mr. Ferguson from joining Greektown
unless he steps down from the MSU Board.
Mr. Ferguson, in an interview with statenews.com, said that his
lawyer does not agree with state law and plans to challenge it.
"I think I can do both," Mr. Ferguson said in the same interview
and added that he has no desire to leave the MSU Board.
According to statenews.com report, Mr. Ferguson is keeping mum on
the issue until October 2010 when he is expected to announce
whether to stay or step down from the MSU Board.
About Greektown Casino
Based in Detroit, Michigan, Greektown Holdings, LLC, and its
affiliates -- http://www.greektowncasino.com/-- operate world-
class casino gaming facilities located in Detroit's historic
Greektown district featuring more than 75,000 square feet of
casino gaming space with more than 2,400 slot machines, over 70
tables games, a 12,500-square foot salon dedicated to high limit
gaming and the largest live poker room in the metropolitan Detroit
gaming market. Greektown Casino employs approximately 1,971
employees, and estimates that it attracts over 15,800 patrons each
day, many of whom make regular visits to its casino complex and
related properties. In 2007, Greektown Casino achieved a 25.6%
market share of the metropolitan Detroit gaming market. Greektown
Casino has also been rated as the "Best Casino in Michigan" and
"Best Casino in Detroit" numerous times in annual readers' polls
in Detroit's two largest newspapers.
The Company and seven of its affiliates filed for Chapter 11
protection on May 29, 2008 (Bankr. E.D. Mich. Lead Case No.
08-53104). Daniel J. Weiner, Esq., Michael E. Baum, Esq., and
Ryan D. Heilman, Esq., at Schafer and Weiner PLLC, represent the
Debtors in their restructuring efforts. Judy B. Calton, Esq., at
Honigman Miller Schwartz and Cohn LLP, represents the Debtors as
their special counsel. The Debtors chose Conway MacKenzie &
Dunleavy as their financial advisor, and Kurtzman Carson
Consultants LLC as claims, noticing, and balloting agent. Clark
Hill PLC serves as counsel to the Official Committee of Unsecured
Creditors.
Greektown Holdings listed assets and debts of $100 million to
$500 million in its bankruptcy petition.
Bankruptcy Creditors' Service, Inc., publishes Greektown Casino
Bankruptcy News. The newsletter tracks the Chapter 11
proceedings undertaken by Greektown Casino and its various
affiliates. (http://bankrupt.com/newsstand/or 215/945-7000)
GREENWOOD RACING: Moody's Affirms 'B2' Corporate Family Rating
--------------------------------------------------------------
Moody's Investors Service affirmed Greenwood Racing, Inc.'s B2
Corporate Family Rating and stable rating outlook. Concurrently,
Moody's revised Greenwood's Probability of Default Rating to B2
from B3, and raised the senior secured first lien bank loan rating
to B1 from B2.
The affirmation of Greenwood's B2 CFR reflects the company's solid
operating performance and strong market fundamentals. The B2
rating is also supported by Greenwood's modest financial leverage
with adjusted debt/EBITDA of 3.0 times for the twelve months
ending March 28, 2010.
Since the opening of Greenwood's permanent facility, Parx Casino,
in December 2009, the company has seen moderate year-over-year
increase in slot revenue, traffic trends and guest spend.
According to Pennsylvania's Gaming Control Board, Parx continues
to report monthly slot win-unit-day in excess of $300, the highest
amongst its peers in Pennsylvania's market. "Moody's believe
Greenwood could be benefiting, to some degree, at the expense of
Atlantic City, because of its more convenient location to its
local customers in Philadelphia metropolitan area and being a
newer facility," explained Moody's analyst John Zhao.
Despite Greenwood's recent solid operating performance, the B2 CFR
is currently constrained by the company's upcoming debt maturity
related to its first lien term debt in November 2011 and the
rising competition from the opening of SugarHouse Casino's in
September 2010, a casino located within 20 miles radius from Parx.
The current rating also incorporates the company's single asset
profile, its weak interest coverage on (EBITDA-Capex)/Interest
basis and negative free cash flow generation, largely due to the
ongoing development projects.
The stable outlook anticipates that in the medium term Greenwood's
overall operating performance will likely remain resilient to the
economic pressures. Moody's expects the introduction of table
games in the 2H 2010 to further drive traffic to the property and
somehow offset the negative impact from new competition. The
outlook also assumes the company would likely timely address its
upcoming debt maturity. Failure of doing so would likely result
in negative rating actions. Conversely, ratings could improve if
Greenwood is successful in refinancing its debt and its expansion
project ramps up as anticipated.
The revision of the PDR to B2 from B3 was prompted by the revision
in Greenwood's family recovery rate assumption to 50% from 65%
according to Moody's Loss Given Default methodology. The 50%
family recovery rate reflects the change of Greenwood's debt
structure to a bond/bank construct from its previous all bank
structure, following the issuance of shareholder notes (not rated
by Moody's) in November 2009 to support its development capital
spending. Therefore, Moody's revised the instrument rating on the
$265 million senior secured term loan to B1 from B2 recognizing
senior secured term debt's senior position in the company's
capital structure relative to the company's subordinated
shareholder notes, which are contractually and effectively
subordinated to the senior debt .
The rating action is:
* Corporate Family Rating -- affirmed at B2
* Probability of Default Rating -- upgraded to B2 from B3
* $265 million senior secured term loan due 2011 -- upgraded to B1
(LGD3, 40%) from B2 (LGD3, 33%)
* Rating outlook - stable
Moody's last rating action occurred on October 20, 2006, when
Moody's assigned a B2 to Greenwood's term loan.
Greenwood Racing, Inc., owns and operates the Parx Casino, slots
gaming facility, in Bensalem, Pennsylvania, a 20-minute drive from
downtown Philadelphia. On December 18, 2009, the company opened
its permanent facility, which features approximately 3,300 slot
machines. The company also conducts live racing for thoroughbred
horses at the Philadelphia Park facility located adjacent to the
Parx Casino. The company generated approximately $447 million in
net revenues in the twelve-month period ended March 28, 2010.
GULF FLEET: Thoma-Sea Joining Committee as Ex Officio Member
------------------------------------------------------------
Bankruptcy Judge Robert Summerhays of the Western District of
Louisiana entered an order directing Thoma-Sea Boat Builders,
L.L.C.'s appointment to the Official Committee of Unsecured
Creditors for Gulf Fleet Holdings, Inc., netDockets Blog reports
The U.S. Trustee had previously formed a Creditors Committee that
did not include Thoma-Sea, prompting the latter to challenge the
decision. Mr. Thoma-Sea is the second largest unsecured creditor
of the debtors, but was excluded from the Creditors Committee
because of contentious on-going litigation between an affiliate of
Thoma-Sea and a non-debtor affiliate of Gulf Fleet.
netDockets Blog reports that the Court entered an order partially
granting the relief sought by Thoma-Sea. While Walter Thomassie
has been appointed to the Creditors Committee as a representative
of Thoma-Sea, he is only granted ex officio status (i.e., non-
voting membership).
About Gulf Fleet
Lafayette, Lousiana-based Gulf Fleet Holdings, Inc. -- along with
affiliates Star Marine, LLC; Gulf Wind, LLC; Gulf Service, LLC;
Gulf Worker, LLC; Hercules Marine, LLC; Gulf Fleet, LLC; Gulf
Fleet Marine, Inc.; Gulf Fleet Management, LLC; Gulf Fleet
Offshore, LLC; and Gulf Ocean Marine Services, LLC -- filed for
Chapter 11 bankruptcy protection on May 14, 2010 (Bankr. W.D. La.
Case No. 10-50713). The Company listed $100,000,001 to
$500,000,000 in assets and $50,000,001 to $100,000,000 in
liabilities.
HAWKER BEECHCRAFT: Bank Debt Trades at 20% Off in Secondary Market
------------------------------------------------------------------
Participations in a syndicated loan under which Hawker Beechcraft
is a borrower traded in the secondary market at 80.08 cents-on-
the-dollar during the week ended Friday, July 2, 2010, according
to data compiled by Loan Pricing Corp. and reported in The Wall
Street Journal. This represents a drop of 1.50 percentage points
from the previous week, The Journal relates. The Company pays 200
basis points above LIBOR to borrow under the facility. The bank
loan matures on March 26, 2014, and carries Moody's Caa1 rating
and Standard & Poor's CCC+ rating. The debt is one of the biggest
gainers and losers among 191 widely quoted syndicated loans with
five or more bids in secondary trading for the week ended Friday.
Hawker Beechcraft Acquisition Company, LLC, headquartered in
Wichita, Kansas, is a leading manufacturer of business jets,
turboprops and piston aircraft for corporations, governments and
individuals worldwide.
Hawker Beechcraft Acquisition Company LLC reported a net loss of
$63.4 million on $568.2 million of total sales for the three
months ended March 28, 2010, compared with net income of
$53.1 million on $537.6 million of sales for the three months
ended March 29, 2009. The Company's balance sheet at March 28,
2010, showed $3.41 billion in total assets and $3.36 billion in
total liabilities for a stockholders' equity $56.5 million.
HAWSHON RILEY: Voluntary Chapter 11 Case Summary
------------------------------------------------
Joint Debtors: Hawshon Daniel Riley
Dagny Brunsgaard Riley
8280 Grand View Drive
Los Angeles, CA 90046
Bankruptcy Case No.: 10-36661
Chapter 11 Petition Date: June 29,2010
Court: U.S. Bankruptcy Court
Central District of California (Los Angeles)
Judge: Alan M. Ahart
Debtor's Counsel: Thomas P. Giordano, Esq.
500 State College Boulevard, Suite 530
Orange, CA 92868
Tel: (714) 912-7810
Fax: (714) 912-7860
E-mail: tohmahso@aol.com
Estimated Assets: $0 to $50,000
Estimated Debts: $1,000,001 to $10,000,000
The Debtors did not file a list of creditors together with its
petition.
The petition was signed by the Joint Debtors.
HCA INC: Bank Debt Trades at 6% Off in Secondary Market
-------------------------------------------------------
Participations in a syndicated loan under which HCA, Inc., is a
borrower traded in the secondary market at 94.36 cents-on-the-
dollar during the week ended Friday, July 2, 2010, according to
data compiled by Loan Pricing Corp. and reported in The Wall
Street Journal. This represents a drop of 0.90 percentage points
from the previous week, The Journal relates. The Company pays 225
basis points above LIBOR to borrow under the facility. The bank
loan matures on Nov. 6, 2013, and carries Moody's Ba3 rating and
Standard & Poor's BB rating. The debt is one of the biggest
gainers and losers among 191 widely quoted syndicated loans with
five or more bids in secondary trading for the week ended Friday.
According to the Troubled Company Reporter on May 11, 2010,
Standard & Poor's placed its 'B+' corporate credit rating on
hospital giant HCA Inc. and S&P's ratings on its secured and
unsecured debt on CreditWatch with positive implications. "The
speculative-grade rating on HCA continues to reflect S&P's view
that the largest U.S. owner and operator of acute health care
facilities is particularly sensitive to reduced capacity
utilization and pricing," said Standard & Poor's credit analyst
David Peknay, "by virtue of the significant debt leverage assumed
in its November 2006 leveraged buyout."
Moody's Investors Service placed the ratings of HCA, Inc.,
including the B2 Corporate Family and Probability of Default
Ratings, under review for possible upgrade. This rating action
follows the announcement that the company has filed a Form S-1 in
contemplation of an initial public offering.
Headquartered in Nashville, Tennessee, HCA is the nation's largest
acute care hospital company with 162 hospitals and 106
freestanding surgery centers (including eight hospitals and eight
freestanding surgery centers that are accounted for using the
equity method) as of March 31, 2010. For the twelve months ended
March 31, 2010, the company recognized revenue in excess of
$30 billion.
HPT DEVELOPMENT: Promises to Pay Unsecureds from Excess Cash Flow
-----------------------------------------------------------------
HPT Development Corporation filed with the U.S. Bankruptcy Court
for the District of Arizona a proposed Chapter 11 Plan and an
explanatory Disclosure Statement.
The Debtors will begin soliciting votes on the Plan following
approval of the adequacy of the information in the Disclosure
Statement.
According to the Disclosure Statement, the Plan will be funded by
the Debtor's postpetition earnings and excess cash flow. The
Reorganized Debtor will act as the Disbursing Agent under the
Plan.
Treatment of Claims
Under these secured claims will be treated as:
-- Maricopa County Claims -- as of the effective date, the
Debtor will provide a deed in lieu of foreclosure to
Heritage Bank on the real property. The real property is
transferred subject to the real property taxes owing to
Maricopa County; and (a) any real property taxes that are
owing on the property will continue to attach to the
property, (b) will bear interest at the state law tax rate;
(c) will be paid by the heritage Bank; and (d) the Debtor
will have no further liability for these taxes upon the
transfer to Heritage Bank;
-- Heritage Bank -- upon the effective date, the Debtor will
transfer by deed in lieu of the foreclosure lots 1, 2, 4 and
5 to Heritage Bank in full satisfaction of its claim related
to the construction loan; and
-- Heritage Bank - the Debtor will transfer by deed in lieu of
the foreclosure lots 3 and 6 to Heritage Bank in full
satisfaction of its claim related to the business loan.
General unsecured claims will be paid a pro rata share from the
Debtor's excess cash flow and any other funds obtained by the
Debtor before any junior interests receive a distribution. The
Debtor anticipates that these unsecured claims will be paid in
full.
The Debtor does not anticipate that there will be any distribution
to the holders of the Debtor's interest; however, after all senior
claims have been paid, any remaining funds will be disbursed to
Howard and Christina Tay. Howard and Christina Tay will retain
their interests in the Debtor.
A full-text copy of the Disclosure Statement is available for free
at http://bankrupt.com/misc/HPTDevelopment_DS.pdf
The Debtor is represented by:
Aiken Schenk Hawkins & Ricciardi P.C.
D. Lamar Hawkins, Esq.
E-mail: dlh@ashrlaw.com
Philip R. Rupprecht, Esq.
E-mail: prr@ashrlaw.com
Christopher R. Chicoine, Esq.
E-mail: crc@ashrlaw.com
4742 North 24th Street, Suite 100
Phoenix, AZ 85016-4859
Tel: (602) 248-8203
Fax: (602) 248-8840
About HPT Development Corporation
Paradise Valley, Arizona-based HPT Development Corporation filed
for Chapter 11 bankruptcy protection on March 10, 2010 (Bankr. D.
Ariz. Case No. 10-06294). The Company listed $10,000,001 to
$50,000,000 in assets and $10,000,001 to $50,000,000 in
liabilities.
HUNTINGTON BANCSHARES: S&P Gives Pos. Outlook; Keeps BB+/B Rating
-----------------------------------------------------------------
Standard & Poor's Ratings Services said that it revised its
outlooks on Huntington Bancshares Inc. and its banking subsidiary,
Huntington National Bank, to positive from negative.
At the same time, S&P affirmed the ratings, including the 'BB+/B'
and 'BBB-/A-3' counterparty credit ratings, respectively, on the
company and the subsidiary. S&P subsequently withdrew the 'B' and
'A-3' short-term ratings on each, at the company's request.
"The outlook revision reflects S&P's expectation that Huntington's
credit quality and profitability will continue to recover in 2010,
easing the pressure on its capital," said Standard & Poor's credit
analyst Catherine Mattson.
Huntington's credit quality has improved in the past several
quarters, and net charge-offs fell, demonstrating management's
resolve to aggressively tackle its sizable asset quality problems.
This in turn led to the company reporting a profit for the first
quarter, as loan-loss provisions fell in response.
The profit was the first in two years, following reported losses
in 2008 and 2009 from a combination of outsized credit losses and
goodwill impairment charges.
"Despite the improvement, S&P still view Huntington's credit
quality as weak and believe that problems could linger through the
rest of the year," Ms. Mattson added. "However, S&P expects that
the improving trend will continue through year-end as
nonperforming loans run off and the newer loans made under the
tighter underwriting standards the bank implemented last year make
up an increasing percentage of the loan portfolio."
The positive outlook reflects S&P's view that if Huntington's
credit quality and profitability continue to improve and current
capital levels prove stable, S&P could raise the ratings.
Alternatively, if loss rates remain high and profitability stays
pressured, S&P could revise the outlook to stable.
ICTS INTERNATIONAL: Mayer Hoffman Raises Going Concern Doubt
------------------------------------------------------------
ICTS International N.V. filed on June 30, 2010, its annual report
on Form 20-F for the year ended December 31, 2009.
Mayer Hoffman McCann CPAs, in New York City, 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 continuing operations, deficiencies in
working capital and is subject to potential material
contingencies. The independent auditors explained that the
Company is involved in significant litigation in connection with
(a) its exposure to certain tax assessments made against it in the
United States of America by the Internal Revenue Service, (b) the
September 11, 2001 terrorist attacks in the United States of
America, (c) certain claims made against the Company by the United
States Department of Labor, and (d) certain claims made by the
Company against the United States Transportation Security
Administration.
September 11, 2001 Terrorist Attacks
As a result of the September 11, 2001 terrorist attacks, numerous
lawsuits charging the Company with wrongful death and/or property
damage were commenced in the United States District Court,
Southern District of New York, resulting from certain airport
security services provided by the Company for United Flight
175 out of Logan Airport in Boston, Massachusetts. All but one of
the wrongful death/personal injury cases relating to Flight 175
have been settled, leaving the focus of the litigation on the
many property damage and insurance subrogation lawsuits.
The Company may be indemnified by the airlines if the Company is
found to have followed the procedures specified by the Federal
Aviation Administration. However, if the Company is found to have
violated these screening regulations, it could be liable for
damages. Based on an internal review of this matter, the
Company has not found any evidence of non-compliance with respect
to the security services provided at Boston's Logan International
Airport on September 11, 2001.
The Company maintains an aviation insurance policy, which may
provide limited coverage for liabilities that may be assessed
against the Company as a result of the events of September 11,
2001. The liabilities under these cases may, by statute, be
limited to the policy coverage. After the September 11 terrorist
attacks, the Company's insurance carriers canceled all war risk
provisions contained in the Company's insurance policies.
Management is unable to determine the likelihood of an
unfavorable outcome or estimate a range of loss with respect to
the remaining open claims against the Company.
The Company reported net income of $2.9 million on $95.9 million
of revenue for 2009, compared with a net loss of $2.0 million on
$98.8 million of revenue for 2008.
The Company's balance sheet at December 31, 2009, showed
$26.8 million in assets and $45.1 million of liabilities, for a
stockholders' deficit of $18.3 million.
A full-text copy of the annual report is available for free at:
http://researcharchives.com/t/s?65d5
About ICTS International
ICTS International N.V. was established by the Department of
Justice in Amstelveen, Netherlands on October 9, 1992. ICTS and
subsidiaries operate in two main businesses: (a) airport security
and other aviation services and (b) technology.
Following the taking of its aviation security business in the
United States by the United States Transportation Security
Administration ("TSA")in 2002, ICTS through its subsidiary
Huntleigh engages primarily in non-security related activities in
the USA.
ICTS, through I-SEC International Security B.V., supplies aviation
security services at airports in Europe and the Far East.
In addition, I-SEC Technologies B.V. and its subsidiaries develop
technological systems and solutions for the following markets:
aviation and non-aviation security, banking and other markets.
Loan Pricing Stories July 2, 2010.
INTELSAT LTD: Bank Debt Trades at 6% Off in Secondary Market
------------------------------------------------------------
Participations in a syndicated loan under which Intelsat Ltd. is a
borrower traded in the secondary market at 93.95 cents-on-the-
dollar during the week ended Friday, July 2, 2010, according to
data compiled by Loan Pricing Corp. and reported in The Wall
Street Journal. This represents a drop of 0.97 percentage points
from the previous week, The Journal relates. The Company pays 175
basis points above LIBOR to borrow under the facility. The bank
loan matures on July 7, 2013, and carries Moody's B1 rating and
Standard & Poor's BB- rating. The debt is one of the biggest
gainers and losers among 191 widely quoted syndicated loans with
five or more bids in secondary trading for the week ended Friday.
Headquartered in Pembroke, Bermuda, Intelsat Ltd., formerly
PanAmSat Corp., -- http://www.intelsat.com/-- is the largest
fixed satellite service operator in the world and is owned by
Apollo Management, Apax Partners, Madison Dearborn, and Permira.
The company has a sales office in Brazil.
Intelsat Ltd.'s balance sheet showed total assets of
US$12.05 billion, total debts of US$12.77 billion and
stockholders' deficit of US$722.3 million as of March 31, 2008.
ISLE OF CAPRI: Moody's Reviews 'B2' Corporate Family Rating
-----------------------------------------------------------
Moody's Investors Service placed Isle of Capri, Inc.'s ratings on
review for possible downgrade following the company's announcement
that it has postponed the proposed public offering of 9,000,000
shares of its common stock due to market conditions.
Ratings placed on review for possible downgrade:
* Corporate Family Rating at B2
* Probability of Default Rating at B2
* $375 million senior secured revolver expiring 2013 at B1 (LGD 3,
37%)
* $821 million senior secured term loan due 2013 at B1 (LGD 3,
37%)
* 7% $357 million senior subordinated debt due 2014 at Caa1 (LGD
6, 90%)
The review for possible downgrade considers that without the
planned equity contribution, Isle will not likely be able to
reduce and maintain leverage at a level Moody's considers more
appropriate for a B2 rating given Isle's asset and profitability
profile. The review also acknowledges that the proposed equity
offering, assuming it moves forward, does not assure that ratings
will not be lowered.
"The proposed equity offering may not have enough of a meaningful
permanent impact on Isle's high leverage to prevent a downgrade,"
stated Keith Foley, Senior Vice President at Moody's. "Despite
the benefit to Isle's cash flow from a reduced tax rate in Florida
and the recent acquisition of the Rainbow Casino in Vicksburg, MS,
the company is still faced with a tough operating environment that
will continue to pressure its credit metrics". Isle's debt/EBITDA
-- pro forma for the full effect of the Florida tax reduction and
Rainbow Casino contribution -- is about 6.6 times.
The review will also consider that an eventual and broader
refinancing of Isle's debt structure will likely result in
significantly higher interest costs. Favorable consideration will
be given to the company's good liquidity and positive -- albeit it
modest -- free cash flow profile.
The last rating action for Isle was on June 29, 2010, when Moody's
commented that Isle's planned equity offering will not have an
immediate impact on the company's ratings.
Isle owns and operates fifteen casino gaming facilities in the
U.S. The company generates consolidated annual net revenues of
about $1.0 billion.
INDEPENDENCE TAX: Trien Rosenberg Raises Going Concern Doubt
------------------------------------------------------------
Trien Rosenberg Weinberg Ciullo & Fazzari LLP expressed
substantial doubt against Independence Tax Credit Plus L.P. II's
ability as a going concern.
The Partnership's balance sheet at March 31, 2010, showed
$39.1 million in total assets and $83.4 in total liabilities, for
a deficit of $44.3 million.
The Partnership reported a net loss of $23.6 million on $10.8
million of total revenue for the year ended March 31, 2010,
compared with a net loss of $5.2 million on $10.3 million of total
revenue during the prior fiscal year.
A full-text copy of the Partnership's Form 10-K is available for
free at http://ResearchArchives.com/t/s?6598
About Independence Tax Credit Plus L.P. II
Based in New York, Independence Tax Credit Plus L.P. II was
organized on Feb. 11, 1992, and commenced its public offering on
Jan. 19, 1993. The general partner of the Partnership is Related
Independence Associates L.P., a Delaware limited partnership. The
general partner of Related Independence Associates L.P. is Related
Independence Associates Inc., a Delaware Corporation. The
ultimate parent of Related Independence Associates L.P. is
Centerline Holding Company.
The Partnership's business is primarily to invest in other
partnerships owning leveraged apartment complexes that are
eligible for the low-income housing tax credit enacted in the Tax
Reform Act of 1986, some of which may also be eligible for the
historic rehabilitation tax credit.
INNATECH LLC: Engineered Plastic to Close Factory for Good
----------------------------------------------------------
Chicago Tribune News reports that Engineered Plastic Components
will permanently close the former Innatech plastics factory in
Richmond by mid-August. The shutdown will leave about 75 workers
without jobs.
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.
IRVINE SENSORS: Issues 326,000 Shares of Stock to 48 Investors
--------------------------------------------------------------
Irvine Sensors Corporation issued an aggregate of 326,029 shares
of common stock to 48 accredited investors pursuant to its
election to convert the payment of interest accrued as of such
date on those certain convertible and non-convertible interest-
bearing debentures issued by the Company to such investors on
March 18, 2010.
On June 22, 2010, the Company issued an aggregate of 1,108,569
shares of common stock to 6 accredited investors upon such
investors' conversions of an aggregate of $554,285.30 of the
stated value of the Company's Series B Convertible Preferred
Stock. On June 24, 2010, the Company issued an aggregate of
20,792 shares of common stock to 7 accredited investors pursuant
to its election to convert the payment of interest accrued as of
such date on those certain convertible and non-convertible
interest-bearing debentures issued by the Company to such
investors on March 24, 2010.
On June 25, 2010, the Company issued an aggregate of 142,857
shares of common stock to one accredited investor upon such
investor's conversion of an aggregate of $71,428.50 of the stated
value of the Company's Series B Stock. As a result of the
issuances on June 22, 2010, the Company has issued more than 5%
of its outstanding shares of common stock in unregistered
transactions in the aggregate since the last report that it filed
under Item 3.02 with the Securities and Exchange Commission.
About Irvine Sensors
Irvine Sensors Corporation -- http://www.irvine-sensors.com/--
headquartered in Costa Mesa, California, is a vision systems
company engaged in the development and sale of miniaturized
infrared and electro-optical cameras, image processors and stacked
chip assemblies and sale of higher level systems incorporating
such products and research and development related to high density
electronics, miniaturized sensors, optical interconnection
technology, high speed network security, image processing and low-
power analog and mixed-signal integrated circuits for diverse
systems applications.
At March 28, 2010, the Company had total assets of $6,184,700
against total liabilities of $13,111,400, and non-controlling
interest of $324,400, resulting in stockholders' deficit of
$6,926,700.
Optex Systems, Inc., a Texas corporation and a wholly owned
subsidiary of Irvine Sensors, on September 21, 2009, filed a
voluntary petition for relief under Chapter 7 of the United States
Bankruptcy Code in the United States Bankruptcy Court in
California.
JAPAN AIRLINES: Turnaround Adviser Hires 4 Ex-Merrill Bankers
-------------------------------------------------------------
Deutsch Bank AG, Germany's biggest lender and JAL's restructuring
adviser appointed by the Enterprise Turnaround Initiative
Corporation to help the distressed airline recover from a $26.2
billion financial setback has hired four former bankers from
Merrill Lynch & Co. to its corporate restructuring company in
Japan, Bloomberg News reported. According to BusinessWeek,
Deutsch Bank will help Japan to win businesses in order to help
bring bankrupt companies back to health.
About Japan Airlines
Japan Airlines Corporation -- http://www.jal.co.jp/-- is a
Japan-based company mainly engaged in the provision of air
transport services. The Company is active in five business
segments through its 203 subsidiaries and 83 associated companies.
JAL International Co. Ltd. is a wholly owned operating subsidiary
of Japan Airlines Corporation.
Japan Airlines Corporation, Japan Airlines International Co., Ltd.
and JAL Capital Co., Ltd., on January 19, 2010, filed the
petitions to commenced corporate reorganization proceedings with
the Tokyo District Court. The Court appointed the Enterprise
Turnaround Initiative Corporation of Japan and Eiji Katayama,
Esq., as reorganization trustees.
Japan Airlines Corp. filed for reorganization January 19 in the
Tokyo District Court and filed a Chapter 15 petition in New York
(Bankr. S.D.N.Y. Case No. 10-10198). The Company said debt is
$28 billion.
Bankruptcy Creditors' Service, Inc., publishes Japan Airlines
Bankruptcy News. The newsletter tracks the Chapter 15 proceedings
and the bankruptcy proceedings in Tokyo undertaken by Japan
Airlines Corp. and its various affiliates.
(http://bankrupt.com/newsstand/or 215/945-7000)
JAPAN AIRLINES: May Sever Ties with IBM Japan to Cut Costs
----------------------------------------------------------
In another move to cut costs, Japan Airlines is contemplating on
severing information technology partnership with IBM Japan Ltd.,
Nikkei English News reported. JAL has a 41% stake in the
operation of IBM Japan, Nikkei said.
About Japan Airlines
Japan Airlines Corporation -- http://www.jal.co.jp/-- is a
Japan-based company mainly engaged in the provision of air
transport services. The Company is active in five business
segments through its 203 subsidiaries and 83 associated companies.
JAL International Co. Ltd. is a wholly owned operating subsidiary
of Japan Airlines Corporation.
Japan Airlines Corporation, Japan Airlines International Co., Ltd.
and JAL Capital Co., Ltd., on January 19, 2010, filed the
petitions to commenced corporate reorganization proceedings with
the Tokyo District Court. The Court appointed the Enterprise
Turnaround Initiative Corporation of Japan and Eiji Katayama,
Esq., as reorganization trustees.
Japan Airlines Corp. filed for reorganization January 19 in the
Tokyo District Court and filed a Chapter 15 petition in New York
(Bankr. S.D.N.Y. Case No. 10-10198). The Company said debt is
$28 billion.
Bankruptcy Creditors' Service, Inc., publishes Japan Airlines
Bankruptcy News. The newsletter tracks the Chapter 15 proceedings
and the bankruptcy proceedings in Tokyo undertaken by Japan
Airlines Corp. and its various affiliates.
(http://bankrupt.com/newsstand/or 215/945-7000)
JAPAN AIRLINES: Submits Antitrust Immunity Application
------------------------------------------------------
Japan Airlines applied to the Ministry of Land, Infrastructure,
Transport and Tourism of Japan, seeking antitrust immunity with
American Airlines so that both members of the oneworld(R)Alliance
may enter a Joint Business Agreement and cooperate more closely on
the operations of flights between North America and Asia.
"We are excited to have taken another defining step towards
forging a closer relationship with our partner American Airlines
so that we can combine strengths to offer our customers travelling
on trans-Pacific routes unprecedented convenience and
flexibility," said Japan Airlines President and Chief Operating
Officer Masaru Onishi of what will be Japan's first ever
antitrust immunity application. "With the immunity, we can
greatly enhance competition in this region of growth, including
at the strategically-located Haneda Airport which will soon
commence scheduled international flights. This is an opportune
time for both airlines to retain existing customers, attract new
travellers and to lift revenue."
Japan Airlines and American Airlines have jointly submitted the
application for antitrust immunity with the U.S. Department of
Transportation on February 12, 2010.
"We very much look forward to working even more closely with our
valued oneworld partner, Japan Airlines,"s aid Gerard Arpey, AMR's
Chairman and Chief Executive Officer. "We appreciate the
important role of the Ministry of Land, Infrastructure, Transport
and Tourism and look forward to receiving the appropriate
government approvals that will allow us to provide customers with
more integrated air service in one of the world's growing aviation
markets and provide benefits to both the U.S. and Japanese
economies."
Upon attaining approval from the MLIT and the U.S. DOT, Japan
Airlines and American Airlines will operate as two independent
legal entities working closely together to strengthen their
service offerings to customers on their flights between the United
States and Asia. Passengers will benefit from a more
comprehensive network, expanded flight options, access to more
fare levels and enhanced services while continuing to enjoy
reciprocal frequent flyer accrual and redemption benefits and
access to both airlines' lounges. JAL and AA will also be able to
improve their efficiencies, lower operating costs, and robustly
heighten competition in the trans-Pacific aviation market.
About Japan Airlines
Japan Airlines Corporation -- http://www.jal.co.jp/-- is a
Japan-based company mainly engaged in the provision of air
transport services. The Company is active in five business
segments through its 203 subsidiaries and 83 associated companies.
JAL International Co. Ltd. is a wholly owned operating subsidiary
of Japan Airlines Corporation.
Japan Airlines Corporation, Japan Airlines International Co., Ltd.
and JAL Capital Co., Ltd., on January 19, 2010, filed the
petitions to commenced corporate reorganization proceedings with
the Tokyo District Court. The Court appointed the Enterprise
Turnaround Initiative Corporation of Japan and Eiji Katayama,
Esq., as reorganization trustees.
Japan Airlines Corp. filed for reorganization January 19 in the
Tokyo District Court and filed a Chapter 15 petition in New York
(Bankr. S.D.N.Y. Case No. 10-10198). The Company said debt is
$28 billion.
Bankruptcy Creditors' Service, Inc., publishes Japan Airlines
Bankruptcy News. The newsletter tracks the Chapter 15 proceedings
and the bankruptcy proceedings in Tokyo undertaken by Japan
Airlines Corp. and its various affiliates.
(http://bankrupt.com/newsstand/or 215/945-7000)
JIM-MAR CONSULTANTS: Case Summary & 20 Largest Unsecured Creditors
------------------------------------------------------------------
Debtor: Jim-Mar Consultants Inc.
90 Marcus Blvd
Deer Park, NY 11729
Bankruptcy Case No.: 10-75120
Chapter 11 Petition Date: June 30, 2010
Court: United States Bankruptcy Court
Eastern District of New York (Central Islip)
Judge: Alan S. Trust
Debtor's Counsel: Mark A. Frankel, Esq.
Backenroth Frankel & Krinsky LLP
489 Fifth Avenue
28th Floor
New York, NY 10017
Tel: (212) 593-1100
Fax: (212) 644-0544
E-mail: mfrankel@bfklaw.com
Scheduled Assets: $1,079,849
Scheduled Debts: $2,628,039
A list of the Company's 20 largest unsecured creditors
filed together with the petition is available for free
at http://bankrupt.com/misc/nyeb10-75120.pdf
The petition was signed by Jim Gambino, chief operating officer.
K-V PHARMACEUTICAL: KMPG LLP Resigns as Company's Accountant
------------------------------------------------------------
In a regulatory filing Thursday, K-V Pharmaceutical Company
disclosed that on June 25, 2010, KPMG LLP notified the Company
that it had resigned from its engagement as the Company's
principal accountant.
KPMG's resignation was not recommended or approved by the Audit
Committee of the Registrant's Board of Directors.
The Company says that during its two most recent fiscal years
ended March 31, 2010, and the subsequent interim period through
the date of KPMG's resignation, there were no disagreements with
KPMG on any matter of accounting principles or practices,
financial statement disclosure, or auditing scope or procedure,
which disagreements, if not resolved to the satisfaction of KPMG,
would have caused it to make reference to the subject matter of
the disagreements in connection with its report.
KPMG's report on the consolidated financial statements of the
Company and subsidiaries as of and for the year ended March 31,
2009, contained a separate paragraph stating that "the Company has
suspended the shipment of all products manufactured by the Company
and must comply with a consent decree with the FDA before approved
products can be reintroduced to the market. Significant negative
impacts on operating results and cash flows from these actions
including the potential inability of the Company to raise capital;
suspension of manufacturing; significant uncertainties related to
litigation and governmental inquiries; and debt covenant
violations raise substantial doubt about the Company's ability to
continue as a going concern."
The Company has begun the process to select a new principal
accountant.
As reported in the Troubled Company Reporter on June 21, 2010, the
Company said that the filing of its annual report on Form 10-K for
the fiscal period ended March 31, 2010, will be delayed. The
Company said that it expects that the report of its independent
registered public accounting firm will include an explanatory
paragraph disclosing the existence of substantial doubt regarding
the Company's ability to continue as a going concern.
On March 2, 2009, the Company entered into a consent decree with
the FDA regarding the Company's drug manufacturing and
distribution, which was entered by the U.S. District Court,
Eastern District of Missouri, Eastern Division on March 6, 2009.
The consent decree requires, among other things, that, before
resuming manufacturing, the Company retain and have an independent
expert undertake a review of the Company's facilities and certify
compliance with the FDA's current good manufacturing practice
regulations.
Also, on December 23, 2008, the Company announced it had
voluntarily suspended all shipments of its FDA approved drug
products in tablet form and, effective January 22, 2009, the
Company voluntarily suspended the manufacturing and shipment of
the remainder of its products, other than three products it
distributes but does not manufacture and which do not generate a
material amount of revenue for the Company. During the fiscal
year ended March 31, 2010, while not generating any material
revenues as a result of the suspension of shipments, the Company
had to meet ongoing operating costs related to its employees,
facilities and FDA compliance, as well as costs related to the
steps the Company currently is taking to prepare for reintroducing
the Company's approved products to the market. As a result, the
Company anticipates that it likely will post a net loss for the
fiscal year ended March 31, 2010.
About K-V Pharmaceutical
Bridgeton, Missouri-based K-V Pharmaceutical Company (NYSE:
Kva/KVb) -- http://www.kvpharmaceutical.com/-- is a fully
integrated specialty pharmaceutical company that develops,
manufactures, markets, and acquires technology-distinguished
branded prescription pharmaceutical products. The Company markets
its technology-distinguished products through Ther-Rx Corporation,
its branded drug subsidiary.
The Company's balance sheet at December 31, 2009, showed
$584.5 million in assets, $440.9 million of liabilities, and
$143.6 million of shareholders' equity.
LANDMARK ATLANTIC: Case Summary & 6 Largest Unsecured Creditors
---------------------------------------------------------------
Debtor: Landmark Atlantic Hess Farm, LLC
2700 S. Nelson St.
Arlington, VA 22201
Bankruptcy Case No.: 10-24656
Chapter 11 Petition Date: June 29, 2010
Court: United States Bankruptcy Court
District of Maryland (Baltimore)
Judge: Duncan W. Keir
Debtor's Counsel: Craig Palik, Esq.
6411 Ivy Lane, Suite 200
Greenbelt, MD 20770
Tel: (301) 441-2420
Fax: (301) 982-9450
E-mail: cpalik@mhlawyers.com
Scheduled Assets: $3,080,000
Scheduled Debts: $3,350,016
A list of the Company's 6 largest unsecured creditors
filed together with the petition is available for free
at http://bankrupt.com/misc/mdb10-24656.pdf
The petition was signed by Scott M. Herrick, managing member.
Debtor-affiliate that filed separate Chapter 11 petition:
Petition
Debtor Case No. Date
------ -------- ----
Hess Farm Partnership 08-15348 04/17/08
LAS VEGAS SANDS: Bank Debt Trades at 12% Off in Secondary Market
----------------------------------------------------------------
Participations in a syndicated loan under which Las Vegas Sands
Corp. is a borrower traded in the secondary market at 87.97 cents-
on-the-dollar during the week ended Friday, July 2, 2010,
according to data compiled by Loan Pricing Corp. and reported in
The Wall Street Journal. This represents a drop of 1.28
percentage points from the previous week, The Journal relates.
The Company pays 175 basis points above LIBOR to borrow under the
facility. The bank loan matures on May 1, 2014, and carries
Moody's B3 rating and Standard & Poor's B- rating.
Meanwhile, participations in a syndicated loan under which
Venetian Macau US Finance Co. LLC is a borrower traded in the
secondary market at 96.93 cents-on-the-dollar during the week
ended Friday, July 2, 2010, according to data compiled by Loan
Pricing Corp. and reported in The Wall Street Journal. This
represents a drop of 0.93 percentage points from the previous
week, The Journal relates. The Company pays 550 basis points
above LIBOR to borrow under the facility. The bank loan matures
on May 25, 2011, and carries Moody's B3 rating and Standard &
Poor's B- rating.
The debt are two of the biggest gainers and losers among 191
widely quoted syndicated loans with five or more bids in secondary
trading for the week ended Friday.
Venetian Macau US Finance Co., LLC (also known as VML US Finance
LLC), and Venetian Macau Limited are wholly owned subsidiaries of
Las Vegas Sands. Venetian Macau Limited owns the Sands Macau in
the People's Republic of China Special Administrative Region of
Macau and is also developing additional casino hotel resort
properties in Macau.
Based in Las Vegas, Nevada, Las Vegas Sands Corp. (NYSE: LVS) --
http://www.lasvegassands.com/-- owns and operates The Venetian
Resort Hotel Casino, The Palazzo Resort Hotel Casino, and an expo
and convention center. The company also owns and operates the
Sands Macao, the first Las Vegas-style casino in Macao, China.
LATHAM INTERNATIONAL: Court Terminates Reorganization Case
----------------------------------------------------------
The Hon. Christopher S. Sontchi of the U.S. Bankruptcy Court for
the District of Delaware closed the Chapter 11 cases of Latham
International, Inc., et al.
The Court said that the cases were fully administered.
Latham International filed for Chapter 11 protection on Dec. 22,
2009 (Bankr. D. Del. Case No. 09-14490). The Company's affiliates
-- Latham Manufacturing Corp.; Viking Pools, LLC; Coverstar, LLC;
and Kafko (US) Corp. -- also filed Chapter 11. Laura Davis Jones,
Esq.; Michael Seidl, Esq.; and Timothy P. Cairns, Esq., at
Pachulski Stang Young & Jones LLP, assist the Debtors in their
restructuring efforts. Latham International listed $50,000,001 to
$100,000,000 in assets and $100,000,001 to $500,000,000 in
liabilities.
LEHMAN BROTHERS: MSBI Objects to Chapter 11 Plan
------------------------------------------------
The Minnesota State Board of Investment has objected to Lehman
Brothers Holdings Inc.'s Chapter 11 plan and disclosure statement,
taking issue with the erstwhile investment giant's decision not to
substantively consolidate its bankruptcy estates, according to
Bankruptcy Law360.
Law360 says the MSBI filed a motion in the U.S. Bankruptcy Court
for the Southern District of New York on Thursday to join the
objection of an ad hoc group of creditors.
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: SunCal Appeals Order on Fenway Deal
----------------------------------------------------
To recall, SunCal Co. is seeking to block Lehman Brothers Holdings
Inc. from closing a deal to buy back $1.5 billion in loans from
affiliate Fenway Capital LLC pending an appeal.
The U.S. Bankruptcy Court for the Southern District of New York,
which is handling the Chapter 11 cases of LBHI, has denied the
SunCal Debtors' request to determine that the automatic stay does
not apply, or in the alternative, to modify the automatic stay
with respect to Lehman Commercial Paper, Inc. and LBHI to enable
the SunCal Debtors' pursuit of their equitable subordination
litigation pending before Judge Erithe Smith of the Bankruptcy
Court for the Central District of California.
Paul J. Couchot, Esq., at Winthrop Couchot, P.C., in Newport
Beach, California -- pcouchot@winthropcouchot.com -- insolvency
counsel for the SunCal Voluntary Debtors, submitted a declaration
in support of the Reply to the Motion of the SunCal Debtors for
an order determining that the automatic stay does not apply or,
in the alternative, granting relief from the automatic stay.
The last version of the SunCal Debtors' plan is the Third Amended
Joint Chapter 11 Plan, which was filed on September 9, 2009.
Since the BAP ruling on December 15, 2009, the SunCal Debtors
have neither proceeded on the approval of a disclosure statement
nor the confirmation of a plan, in the SunCal cases, Mr. Couchot
informed the Bankruptcy Court. The SunCal Debtors have not
violated the Stay with respect to the proposed plan, Mr. Couchot
tells the Court.
SunCal Entities Appeal
SunCal Communities I LLC, SunCal Communities III LLC,
SCC/Palmdale LLC, Acton Estates LLC, SunCal Beaumont Heights LLC,
SunCal Emerald Meadows LLC, SunCal Johansson Ranch LLC, SunCal
Bickford Ranch LLC, SunCal Summit Valley LLC, Seven Brothers LLC,
Kirby Estates LLC, SJD Partners Ltd., SJD Development Corp., SCC
Communities LLC, North Orange Del Rio Land LLC and Tesoro SF LLC,
appeal to the United States District Court Southern District of
New York from the order denying the SunCal Debtors' motion for an
order determining that the automatic stay does not apply.
The SunCal Entities want the District Court to determine:
1. Whether the lower court erred in finding that LCPI's
automatic stay would stay an ongoing action in the United
States Bankruptcy Court for the Central District of
California, which seeks to equitably subordinate certain
claims filed in the SunCal Appellants' Chapter 11 cases
(pending in such court) by non-debtor, Fenway Capital, LLC,
after LCPI acquires those claims;
2. Whether the lower court erred in finding that LBHI's
automatic stay would stay an ongoing action in the United
States Bankruptcy Court for the Central District of
California, which seeks to equitably subordinate certain
claims filed in the SunCal Appellants' Chapter 11 cases
(pending in that court) by non-debtor, Fenway Capital, LLC,
after LCPI acquires those claims;
3. Whether the lower court used the proper legal standard in
denying the SunCal Appellants' Motion for Relief From Stay;
4. Whether the lower court correctly applied the proper legal
standard in denying the SunCal Appellants' Motion For
Relief From Stay; and
5. Whether the lower court abused its discretion in denying
the SunCal Appellants' Motion For Relief From Stay.
The SunCal Entities also appeal to the United States District
Court Southern District of New York from the order authorizing the
Debtors' to compromise controversy in connection with a repurchase
transaction with Fenway Capital, LLC, and a commercial paper
program with Fenway Funding, LLC.
The SunCal Entities want the District Court to determine:
1. Whether the Compromise Order is void. This jurisdictional
issue is premised upon the contention that the Compromise
authorized a transaction that was designed to violate, and
in fact violated, the automatic stay applicable in the
SunCal Appellants' pending Chapter 11 cases;
2. Whether the Compromise Order is void on the grounds that it
approves a motion that collaterally attacked an order
entered by the United States Bankruptcy Court Central
District of California, which is currently the subject of
an appeal before the Ninth Circuit;
3. Whether the Court used the proper standard in approving the
Compromise Motion;
4. Whether the Court correctly applied the proper standard in
approving the Compromise Motion;
5. Whether the Compromise Order is void on the grounds that it
approves a motion filed in bad faith;
6. Whether the finding in the Compromise Order that "LCPI will
have repurchased the Repo Assets pursuant to the MRA" is in
error;
7. Whether the finding in the Compromise Order that "LBHI is
fully subrogated to the claims of Fenway against LCPI to
the full extent of any payment by LBHI in respect of such
claims" is in error;
8. Whether the finding in the Compromise Order that "LBHI
shall succeed to any and all liens and security interests
with respect to the Repo Assets and any interest therein
asserted by Fenway under the Fenway Repo and/or the Fenway
Documents (which liens and security interests shall remain
in effect notwithstanding any subsequent transfer by LCPI
of any of the Repo Assets or any interest therein), in the
same priorities as held by Fenway Capital or Fenway
Funding, to secure LBHI's subrogated claims, which liens
and security interests shall hereby be deemed assigned
transferred by Fenway Capital and Fenway Funding to LBHI"
is in error.
Court Junks SunCal Appellant's Stay Motion
For reasons stated on the record, Judge James Peck of the U.S.
Bankruptcy Court for the Southern District of New York junked the
SunCal Appellant's request for a stay pending their appeal from
the order granting the Debtors' authority to compromise the
controversy in connection with a repurchase transaction with
Fenway Capital, LLC, and a commercial paper program with Fenway
Funding, LLC.
The SunCal Appellants, in their motion for stay, argued that they
want an order staying the implementation of any part of the
Claims Transaction that has the effect of enabling either Lehman
Commercial Paper, Inc., or Lehman Brothers Holdings, Inc., to
acquire or take any interest in the Disputed Claims under
conditions that would result in the stay of the equitable
subordination action they are pursuing in the United States
Bankruptcy Court Central District of California.
Robert Starkman, senior vice president for asset management at
Argent Management, LLC, and Sean A. O'Keefe, Esq., at Winthrop
Couchot, P.C., in Newport Beach, California, filed separate
declarations in support of the SunCal Appellants' motion for stay
pending its appeal of the stay order.
In response to the SunCal Appellants' Stay Motion, the Debtors
argued that the SunCal Debtors cannot show cause to warrant a
stay of the Court's orders because:
-- they cannot show that they will suffer actual and imminent
harm through the entry of the settlement agreement order
where they conceded they lacked standing to object to the
merits of the transaction and where the settlement
agreement order lacks any findings as to its effect on the
SunCal Debtors or the California cases;
-- they cannot show that there is a substantial probability
that they will prevail on appeal;
-- they cannot establish that the Debtors would not be harmed
by a stay of the 9019 Order and that the public interest
favors a stay; and
-- they do not show that the public interest would be served
by a stay.
The Official Committee of Unsecured Creditors joined in the
Debtors' response.
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: LBI Trustee Reaches Deals with Zurcher, Societe
----------------------------------------------------------------
James W. Giddens, trustee for Lehman Brothers, Inc., entered into
separate stipulations in connection with closing of certain
transactions with these parties:
* Zurcher Kantonalbank
* Societe Generale
Before the Petition Date, LBI and ZKB entered into certain
transactions under an October 19, 2000 ISDA Agreement, as
amended. Similarly, SG entered into certain transactions under
an April 3, 2008 ISDA Master Agreement with LBI.
The LBI Trustee has determined, in consultation with his
professional advisors, including Deloitte & Touche LLP that it
would be in the best of the LBI Estate, its customers and
creditors that the outstanding Transactions be closed out subject
to the payment to the LBI Trustee of:
(a) $8,000,000, with respect to ZKB; and
(b) $188,064,328 with respect to SG.
The terms of the stipulation are:
(a) ZKB and SG agree to pay the LBI Trustee the Closeout Amount
and Termination Amount in immediately available funds to:
Union Bank, N.A.
ABA No. 122000496
A/C No/ 3713096431 TRUSDG
James W. Giddens, Trustee, LBI Funds Account,
Account No. 6711860101
(b) Upon receipt by the LBI Trustee of the Closeout Amount and
Termination Amount, the Transactions will be fully and
finally closed without the need for any further Court
approval or other action by the parties.
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: Deal Ending Engagement with Cherokee Advisers
--------------------------------------------------------------
Before the Petition Date, Lehman Brothers Inc. entered into an
engagement letter with Cherokee Advisers, L.L.C., whereby LBI was
to act as exclusive placement agent to sell interests in Cherokee
Investment Partners IV, L.P. Cherokee Advisers wants to
terminate LBI's interests in the Agreement and to take other
certain actions.
James W. Giddens, trustee for LBI, has determined that it would
be interest of LBI and its estate that the Agreement be
terminated by the LBI estate subject to the payment to the LBI
Trustee of $460,000.
The LBI Trustee and Cherokee Advisers entered into a Court-
approved stipulation whereby:
(1) Cherokee Advisers agrees to pay the Termination Fee to the
LBI in immediately available funds:
(i) $153,333 within two business days of entry of an order to
the Parties' Stipulation;
(ii) $153,333 on the first anniversary of the First Payment
Date; and
(iii) $153,334 on the second anniversary of the First Payment
Date. Payment will be made by wire transfer to:
Union Bank, N.A.
ABA No. 122000496
A/C No. 37130196431 TRUSDG
James W. Giddens, Trustee, LBI Funds Account, Account No.
6711860101
(2) Upon receipt by the LBI Trustee of the full Termination Fee,
the Agreement will be terminated without need for further
action by any of the Parties, without the need for any
further Court approval.
(3) Cherokee Advisers and Cherokee Investment will be deemed to
each have fully, finally and forever waived and released the
LBI Trustee and the Securities Investor Protection
Corporation from any and all claims arising under the
Agreement.
About Lehman Brothers
Lehman Brothers Holdings Inc. -- http://www.lehman.com/-- was the
fourth largest investment bank in the United States. For more
than 150 years, Lehman Brothers has been a leader in the global
financial markets by serving the financial needs of corporations,
governmental units, institutional clients and individuals
worldwide.
Lehman Brothers filed for Chapter 11 bankruptcy September 15, 2008
(Bankr. S.D.N.Y. Case No. 08-13555). Lehman's bankruptcy petition
listed US$639 billion in assets and US$613 billion in debts,
effectively making the firm's bankruptcy filing the largest in
U.S. history. Several other affiliates followed thereafter.
The Debtors' bankruptcy cases are handled by Judge James M. Peck.
Harvey R. Miller, Esq., Richard P. Krasnow, Esq., Lori R. Fife,
Esq., Shai Y. Waisman, Esq., and Jacqueline Marcus, Esq., at Weil,
Gotshal & Manges, LLP, in New York, represent Lehman. Epiq
Bankruptcy Solutions serves as claims and noticing agent.
On September 19, 2008, the Honorable Gerard E. Lynch, Judge of the
U.S. District Court for the Southern District of New York, entered
an order commencing liquidation of Lehman Brothers, Inc., pursuant
to the provisions of the Securities Investor Protection Act (Case
No. 08-CIV-8119 (GEL)). James W. Giddens has been appointed as
trustee for the SIPA liquidation of the business of LBI
The Bankruptcy Court has approved Barclays Bank Plc's purchase
of Lehman Brothers' North American investment banking and
capital markets operations and supporting infrastructure for
US$1.75 billion. Nomura Holdings Inc., the largest brokerage
house in Japan, purchased LBHI's operations in Europe for US$2
plus the retention of most of employees. Nomura also bought
Lehman's operations in the Asia Pacific for US$225 million.
International Operations Collapse
Lehman Brothers International (Europe), the principal UK trading
company in the Lehman group, was placed into administration,
together with Lehman Brothers Ltd, LB Holdings PLC and LB UK RE
Holdings Ltd. Tony Lomas, Steven Pearson, Dan Schwarzmann and
Mike Jervis, partners at PricewaterhouseCoopers LLP, have been
appointed as joint administrators to Lehman Brothers International
(Europe) on September 15, 2008. The joint administrators have
been appointed to wind down the business.
Lehman Brothers Japan Inc. and Lehman Brothers Holdings Japan Inc.
filed for bankruptcy in the Tokyo District Court on September 16.
Lehman Brothers Japan Inc. reported about JPY3.4 trillion
(US$33 billion) in liabilities in its petition.
Bankruptcy Creditors' Service, Inc., publishes Lehman Brothers
Bankruptcy News. The newsletter tracks the Chapter 11 proceeding
undertaken by Lehman Brothers Holdings, Inc., and other insolvency
and bankruptcy proceedings undertaken by its affiliates.
(http://bankrupt.com/newsstand/or 215/945-7000)
LEHMAN BROTHERS: PWC to Expedite LBIE Claims Determination
----------------------------------------------------------
The Joint Administrators of Lehman Brothers International (Europe)
are issuing a notice of their current plans to unsecured creditors
which, if implemented, could see the time in which unsecured
claims are determined and distributions made materially shortened.
The proposal, referred to as the "Consensual Approach", will
involve LBIE determining the claim value of each financial trading
creditor using a standard comprehensive set of processes, data
sources and valuation methods, all subject to comprehensive review
and universally applied to all relevant unsecured creditors.
The Consensual Approach could enable the Joint Administrators to
agree the majority of the value of unsecured creditor claims by
the year end and pave the way for the first cash distribution in
2011. The Joint Administrators currently hold net cash of
approximately o7.3 billion.
Steven Pearson, joint administrator and partner at
PricewaterhouseCoopers LLP said:
"We are very pleased to be able to announce our proposed solution
for the determination of unsecured creditor claims. The
Consensual Approach is an innovative mechanism which will enable
the claims to be determined in an expeditious manner, resulting in
significant time and cost savings to both unsecured creditors and
LBIE. Further, the timing at which cash distributions can be made
will be accelerated materially."
The Consensual Approach is entirely dependant upon the willingness
of the overwhelming majority of financial trading counterparties
to support the process. In the short term, the Joint
Administrators will be opening a dialogue with a number of
financial trading counterparties with regard to their claims and
seeking their support in order to establish the feasibility of the
proposal.
Mr. Pearson continued:
"We have taken soundings from the market and been in active
dialogue with a working group including members of the Creditors
Committee in order to develop this proposal in a collaborative
manner. Last year we successfully launched the Claim Resolution
Agreement for progressing the return of Trust Assets to clients.
That was an innovative solution to a difficult problem and we are
committed to finding an equivalent solution for the rapid
determination of creditor claims that is fair, market acceptable
and pragmatic. We believe the Consensual Approach, with the
support of creditors, will prove to be that solution."
If the initial feedback to this announcement is positive and the
Joint Administrators and creditor working group conclude that
the Consensual Approach is feasible and will attract the necessary
support, then it is likely that meetings will be hosted in London
and New York in due course to further outline the proposal such
that the Consensual Approach could potentially be launched in the
autumn.
Mr. Pearson concluded:
"Clearly our timetable needs to be flexible but whilst the
Consensual Approach will be an innovative way to determine
creditor claims, we are optimistic that we can gain significant
support to enable this proposal to become a reality. The
conventional alternative process to determining claims using our
powers under the Insolvency Act is likely to mean the exercise
will be expensive and take many years and that cannot be in
anybody's interest."
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)
LIONS GATE: Icahn Hikes Stake to 34%, Triggers Change of Control
----------------------------------------------------------------
Nat Worden at Dow Jones Newswires reports that Carl Icahn was able
to boost his stake in Lions Gate Entertainment Inc. to almost 34%
from 32% in a two-week period after his official tender offer of
$7 a share, which expired June 16.
According to Dow Jones, under Canadian regulatory laws, by
exceeding the 33% threshold, Mr. Icahn now has "negative control"
over Vancouver-based Lions Gate, allowing him to block
transactions, like a possible merger with debt-laden film studio
Metro-Goldwyn-Mayer Inc. Mr. Icahn also has triggered a change-
of-control provision, giving Lions Gate's top executives the
option of leaving the company with multimillion-dollar
compensation packages.
Dow Jones notes Lions Gate last month set aside $16 million for
this possibility, but a person familiar with the matter said Lions
Gate Chief Executive Jon Feltheimer and Vice Chairman Michael
Burns have told the board that they will decline their option to
leave.
According to Dow Jones, Mr. Icahn has said his next step will be
to wage a proxy fight to replace the board, which he accuses of
failing to hold management accountable for its performance on
behalf of shareholders. Mr. Icahn has held discussions with Lions
Gate's top executives, and some observers expect the parties to
reach an agreement that averts a costly proxy fight.
According to Dow Jones, Lions Gate said in a news release that
owners of 66% of the company's shares have rejected Mr. Icahn's
offer. Lions Gate has called the tender offer "coercive," and it
has criticized Mr. Icahn's track record as an activist investor.
"Lions Gate's shareholders have repeatedly confirmed their support
for the board and management's strategy to grow shareholder value
by continuously rejecting the Icahn Group's financially inadequate
offer," the company said.
About Lions Gate
British Columbia-domiciled and Santa Monica, California-
headquartered Lions Gate is a leading, diversified independent
producer and distributor of motion pictures, home entertainment,
television programming and animation worldwide and holds a
majority interest in the pioneering CinemaNow VOD business. The
Lions Gate brand name is synonymous with original, cutting edge,
quality entertainment in markets around the world.
As reported by the Troubled Company Reporter on March 10, 2010,
Standard & Poor's Ratings Services revised its rating outlook on
Lions Gate to negative from stable. At the same time, S&P
affirmed ratings on Lions Gate, including the 'B-' corporate
credit rating.
Lions Gate carries Moody's "B2" corporate family rating and
probability of default rating.
LLC GREENS: Case Summary & 4 Largest Unsecured Creditors
--------------------------------------------------------
Debtor: LLC Greens Farms Financial
680 North Park Avenue
Easton, CT 06612
Bankruptcy Case No.: 10-51542
Chapter 11 Petition Date: June 30, 2010
Court: United States Bankruptcy Court
District of Connecticut (Bridgeport)
Judge: Alan H.W. Shiff
Debtor's Counsel: James M. Nugent, Esq.
Harlow, Adams, and Friedman
300 Bic Drive
Milford, CT 06460
Tel: (203) 878-0661
E-mail: jmn@quidproquo.com
Scheduled Assets: $743,000
Scheduled Debts: $1,234,471
A list of the Company's 4 largest unsecured creditors
filed together with the petition is available for free
at http://bankrupt.com/misc/ctb10-51542.pdf
The petition was signed by Donald Latella, member/manager.
LOVEJOY ROAD: Case Summary & 8 Largest Unsecured Creditors
----------------------------------------------------------
Debtor: Lovejoy Road Properties, LLC
dba Lovejoy Carwash
405 Goza Rd
Fayetteville, GA 30215
Bankruptcy Case No.: 10-78831
Chapter 11 Petition Date: June 30, 2010
Court: United States Bankruptcy Court
Northern District of Georgia (Atlanta)
Debtor's Counsel: Cameron M. McCord, Esq.
Jones & Walden, LLC
21 Eighth Street, NE
Atlanta, GA 30309
Tel: (404) 564-9300
Fax: (404) 564-9301
E-mail: cmccord@joneswalden.com
Scheduled Assets: $957,088
Scheduled Debts: $1,101,460
A list of the Company's 8 largest unsecured creditors
filed together with the petition is available for free
at http://bankrupt.com/misc/ganb10-78831.pdf
The petition was signed by Michael A. Ford, managing member.
MACDERMID INC: S&P Hikes Outlook to 'Stable', Affirms 'B-' Rating
-----------------------------------------------------------------
Standard & Poor's Ratings Services said that it revised its
outlook on Denver-based MacDermid Inc. to stable from negative.
At the same time, S&P affirmed its ratings on the company,
including the 'B-' corporate credit rating.
S&P also affirmed the 'B+' issue-level rating on the company's
secured credit facilities and the 'CCC' issue-level rating on the
senior subordinated notes. The recovery rating on the secured
credit facilities is unchanged at '1', which indicates S&P's
expectation for a very high (90% to 100%) recovery in the event of
a payment default. The recovery rating on the senior subordinated
notes is unchanged at '6', which indicates S&P's expectation for
negligible (0% to 10%) recovery in the event of a payment default.
"The outlook revision reflects better operating trends during the
last few quarters and S&P's view that business conditions should
support further gradual improvement to the financial profile,"
said Standard & Poor's credit analyst Henry Fukuchi.
S&P expects recovering sales volumes in MacDermid's advanced
surface finish segment, improving economic conditions, and the
ongoing benefits of cost reductions to support further
strengthening of the financial profile.
The outlook revision also incorporates the company's improved
access to its $50 million revolving credit facility based on its
renewed compliance with the springing leverage covenant for the
first time in several quarters. Based on S&P's 2010 projections,
MacDermid should be in compliance under the covenants for the
remainder of the year. The terms of the credit facility indicate
that if funding exceeds $10 million for 10 days or more, the
company must maintain compliance with leverage and interest
coverage ratios. As of March 31, 2010, the leverage ratio was
6.77x, below the maximum level of 7.4x. However, the leverage
covenant steps down to 7.0x at the end of 2010 and again to 6.5x
at the end of 2011. Based on S&P's forecasts, the step down could
become problematic if operating trends weaken in 2011. Although
covenant compliance remains a concern if business conditions do
not improve in line with expectations, S&P believes the company's
preservation of high cash balances and decent free cash flow
trends support adequate liquidity at the current ratings.
MARHABA PARTNERS: Plan Outline Hearing Scheduled for July 19
------------------------------------------------------------
The Hon. Karen K. Brown of the U.S. Bankruptcy Court for the
Southern District of Texas will consider on July 19, 2010, at
11:00 a.m., the approval of a Disclosure Statement explaining
Marhaba Partners Limited Partnership's Plan of Reorganization.
The hearing will be held at Courtroom 403, 4th Floor, U.S.
Bankruptcy Court, 515 Rusk Avenue, Houston, Texas. Objections, if
any, are due on July 15.
As reported in the Troubled Company Reporter on June 9, according
to the Disclosure Statement, the Plan provides that the
Reorganized Debtor will continue owning all of the properties, the
obligations to the secured Lenders will be satisfied by the sale
or refinance of the properties, an equity infusion or consensual
modification of the loan obligations.
Distributions will be made holders of allowed claims using a
combination of available cash on hand as of the effective date,
allotted funds made available through any equity contribution, and
income generated from sale, refinance or operations of the
properties.
As part of the Plan, the Debtor will dedicate $100,000 for pro
rata distribution to holders of General Unsecured Claims
commencing on March 31, 2011. Any claim attributable to any
deficiency amount in the event any property is foreclosed upon by
a secured lender will be an unsecured claim.
The Plan provides for pro rata payment to all holders of Allowed
General Unsecured Claims. However, during the pendency of these
bankruptcy cases, several Claims in this Class have already
received certain payments from the Debtor on account of utility
deposits. Any postpetition amounts paid by the Debtor to holders
of Allowed General Unsecured Claims will serve to offset the
amounts the holders of Allowed General Unsecured Claims will
receive under this Plan.
A full-text copy of the Disclosure Statement is available for free
at http://bankrupt.com/misc/MarhabaPartners_DS.pdf
About Marhaba Partners
Houston, Texas-based Marhaba Partners Limited Partnership filed
for Chapter 11 bankruptcy protection on January 5, 2010 (Bankr.
S.D. Texas Case No. 10-30227). Elizabeth Carol Freeman, Esq., at
Porter & Hedges, L.L.P., assists the Company in its restructuring
effort. The Company listed $50,000,001 to $100,000,000 in assets
and $50,000,001 to $100,000,000 in liabilities. In its schedules,
the Debtor disclosed $202,288,728 in total assets and $70,486,867
in total liabilities.
MARKWEST ENERGY: Fitch Assigns 'BB+' Rating on $700 Mil. Loan
-------------------------------------------------------------
Fitch Ratings has assigned a 'BB+' rating to MarkWest Energy
Partners, L.P.'s $700 million secured revolving credit facility
(revolver).
The Rating Outlook is Stable.
The five-year, $700 million revolver closed and will mature
July 1, 2015. The revolver replaced MarkWest's $435.6 million
revolver that was due to mature in February 2012. The larger size
and longer tenor of the new revolver improve MarkWest's financial
flexibility and are expected to adequately meet the company's
liquidity needs.
MarkWest's ratings are supported by the company's increased fee-
based revenue sources and layered hedging strategy, which have
helped decrease cash flow volatility and provide greater cash flow
predictability. Ratings further benefit from the company's
expanding geographic footprint and scale in its core regions,
including leading positions in the Marcellus and Woodford Shale
plays. Offsetting challenges include the significant percentage
of non-fee-based cash flows from keep-whole and percent-of-
proceeds arrangements, a proxy hedging strategy that is exposed to
the periodic breakdown in the correlation between crude oil and
natural gas liquids prices, and environmental concerns regarding
hydraulic fracturing in the Marcellus Shale.
Fitch has these ratings on MarkWest:
-- Long-term Issuer Default Rating 'BB';
-- Senior secured debt 'BB+';
-- Senior secured revolver 'BB+';
-- Senior unsecured debt 'BB'.
MARY LANDSEE: Case Summary & 16 Largest Unsecured Creditors
-----------------------------------------------------------
Debtor: Mary Imogene Cates Landsee
dba Millington Medical Cinic
aka Jean Landsee
8143 Rankin Branch Road
Millington, TN 38053
Tel: (901) 876-6845
Bankruptcy Case No.: 10-26881
Chapter 11 Petition Date: June 29, 2010
Court: United States Bankruptcy Court
Western District of Tennessee (Memphis)
Judge: Paulette J. Delk
Debtor's Counsel: Vicki L. Green, Esq.
4962 R Navy Road
Millington, TN 38053
Tel: (901) 872-7445
E-mail: Cysco1@aol.com
Scheduled Assets: $761,300
Scheduled Debts: $1,239,105
A list of the Company's 16 largest unsecured creditors
filed together with the petition is available for free
at http://bankrupt.com/misc/tnwb10-26881.pdf
The petition was signed by Mary Imogene Cates Landsee.
MASSEY ENERGY: S&P Affirms 'BB-' Corporate Credit Rating
--------------------------------------------------------
Standard & Poor's Ratings Services said that it affirmed its 'BB-'
corporate credit and senior unsecured debt rating on Massey Energy
Co. The recovery rating on the senior unsecured debt remains
unchanged at '3', indicating S&P's expectation of meaningful (50%
to 70%) recovery in the event of a payment default. All ratings
are removed from CreditWatch, where they were placed on April 6,
2010, with negative implications. The rating outlook is negative.
"The rating affirmation reflects S&P's review of management's
estimates for the potential costs associated with the Upper Big
Branch accident, and S&P's belief that Massey will have adequate
liquidity to absorb the direct expenditures and lost cash flow,"
said Standard & Poor's credit analyst Sherwin Brandford.
S&P believes the combination of favorable met coal pricing and the
benefit from the Cumberland Resources Corp. acquisition will help
Massey absorb these costs. Massey estimates costs of
approximately $80 million to $150 million in conjunction with the
accident. S&P believes that Massey has cash on hand of about
$450 million pro forma for the Cumberland acquisition, about
$100 million in availability under its revolving credit facility,
and internally generated cash flow.
The negative rating outlook reflects the risk that the current
period of heightened regulatory scrutiny, as a result of the UBB
accident, could hurt operating conditions such that earnings would
weaken materially. This would result in a deterioration of credit
metrics to a level no longer consistent with the rating with
adjusted leverage exceeding 4x.
MCC BUSINESS: Voluntary Chapter 11 Case Summary
-----------------------------------------------
Debtor: MCC Business, Inc.
3535 W. 47th Street
Chicago, IL 60632
Bankruptcy Case No.: 10-28889
Chapter 11 Petition Date: June 29, 2010
Court: United States Bankruptcy Court
Northern District of Illinois (Chicago)
Judge: Eugene R. Wedoff
Debtor's Counsel: Colleen E. McManus, Esq.
E-mail: cmcmanus@muchshelist.com
Kurt M. Carlson, Esq.
E-mail: kcarlson@muchshelist.com
Much Shelist
191 N. Wacker Drive, Suite 1800
Chicago, IL 60606
Tel: (312) 521-2000
Fax: (312) 521-2200
Estimated Assets: $10,000,001 to $50,000,000
Estimated Debts: $10,000,001 to $50,000,000
The petition was signed by Cliff Rusnak, executive vice president.
The Debtor did not file its list of largest unsecured creditors
when it filed its petition.
MICHAELS STORES: Bank Debt Trades at 8% Off in Secondary Market
---------------------------------------------------------------
Participations in a syndicated loan under which Michaels Stores,
Inc., is a borrower traded in the secondary market at 92.47 cents-
on-the-dollar during the week ended Friday, July 2, 2010,
according to data compiled by Loan Pricing Corp. and reported in
The Wall Street Journal. This represents a drop of 0.69
percentage points from the previous week, The Journal relates.
The Company pays 225 basis points above LIBOR to borrow under the
facility. The bank loan matures on Oct. 31, 2013, and carries
Moody's B2 rating and Standard & Poor's B rating. The debt is one
of the biggest gainers and losers among 191 widely quoted
syndicated loans with five or more bids in secondary trading for
the week ended Friday.
Headquartered in Irving, Texas, Michaels Stores, Inc., is the
largest arts and crafts specialty retailer in North America. As
of March 9, 2009, the Company operated 1,105 "Michaels" retail
stores in the United States and Canada and 161 Aaron Brothers
Stores.
Michaels Stores, Inc., reported net income of $13 million for the
first quarter of fiscal 2010, a $9 million improvement from net
income of $4 million in the first quarter of fiscal 2009. Total
sales for the quarter ended May 1, 2010, were $901 million, a 5.7%
increase from fiscal 2009 first quarter sales of $852 million.
Same-store sales for the comparable 13-week period increased 4.9%
of which 160 basis points were related to the positive impact of
foreign exchange rates. First quarter operating income increased
$41 million to $105 million from $64 million in fiscal 2009.
At May 1, 2010, the Company had total assets of $1.56 billion
against total liabilities of $4.32 billion, resulting in
stockholders' deficit of $2.76 billion.
MIDWEST AG: Voluntary Chapter 11 Case Summary
---------------------------------------------
Debtor: Midwest AG Investments, LLC
1290 Shoop Ave., Suite 140
Wauseon, OH 43567
Bankruptcy Case No.: 10-09782
Chapter 11 Petition Date: June 29, 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
Estimated Assets: $0 to $50,000
Estimated Debts: $10,000,001 to $50,000,000
The Debtor did not file a list of its largest unsecured creditors
together with its petition.
The petition was signed by Ad Nieuwenhuis, vice president.
Debtor-affiliate that filed separate Chapter 11 petition:
Petition
Debtor Case No. Date
------ -------- ----
Union Go Dairy Leasing, LLC 10-1703 02/17/10
MIDWEST BANC: Roberto Herencia Inks Consulting Agreement
--------------------------------------------------------
Roberto R. Herencia entered into a consulting agreement with
Midwest Banc Holdings, Inc., on June 22. The agreement terminated
Mr. Herencia's employment agreement with the Company. Under the
agreement, Mr. Herencia will perform those duties as assigned to
him from time to time by the board of directors as they relate to
the winding-up of the business and affairs of the Company.
Mr. Herencia will be paid $25,000 per month while performing
services under the agreement.
Midwest Banc Holdings, Inc. is a community-based bank holding
company headquartered in Melrose Park, Illinois. Through its
wholly owned subsidiaries, the Company provides a wide range of
services, including traditional banking services, personal and
corporate trust services, and insurance brokerage and retail
securities brokerage services. The Company's principal operating
subsidiary is Midwest Bank and Trust Company, an Illinois state
bank that operates 26 banking centers in the Chicago metropolitan
area.
The Company's balance sheet as of March 31, 2010, showed
$3.182 billion in assets and $3.232 billion of liabilities, for a
stockholders' deficit of $49.5 million.
* * *
As reported in the Troubled Company Reporter on April 6, 2010,
PricewaterhouseCoopers LLP, in Chicago, expressed substantial
doubt about the Company's ability to continue as a going concern.
The independent auditors noted that the Company has experienced
significant net losses during 2008 and 2009, is undercapitalized
at December 31, 2009, does not have sufficient liquidity to meet
the potential demand for all amounts due under certain lending
arrangements with its primary lender upon expiration of a related
forbearance agreement that expires on March 31, 2010, and its
ability to raise sufficient new equity capital in a timely manner
is uncertain.
MOLECULAR INSIGHT: Receives Fourth Extension of Waiver Agreement
----------------------------------------------------------------
Molecular Insight Pharmaceuticals, Inc., has received a fourth
extension of its waiver agreement with its Bond holders, allowing
debt restructuring discussions to progress.
Earlier this year, Molecular Insight executed the waiver agreement
and subsequent amendments with holders of the Company's
outstanding Senior Secured Bonds and the Bond Indenture trustee
and announced ongoing discussions with the Bond holders concerning
a restructuring of its outstanding debt. Under terms of the
fourth extension announced today, the Bond holders and Bond
Indenture trustee agreed to extend the waiver of a default arising
from the inclusion of a going concern explanatory paragraph in the
independent auditor's report on the Company's financial statements
for the year ended December 31, 2009 and other technical defaults
under the Bond Indenture. The term of the waiver is extended
until 12:01 AM Eastern Standard Time on July 16, 2010. During
this waiver period, the Company expects to continue to discuss
with its Bond holders various proposals being exchanged between
the Bond holders and the Company which generally contemplate,
among other things, a deleveraging of the Company through a debt
for equity exchange. There are no assurances, however, that such
discussions will be successful.
The waiver continues to be subject to a number of terms and
conditions relating to the provision of certain information to the
Bond holders, among other conditions and matters. In the event
that the waiver expires or terminates prior to the successful
conclusion of the Company's negotiations with its Bond holders
regarding the restructuring of its outstanding debt, the Company
will be in default of its obligations under the Indenture and the
Bond holders may choose to accelerate the debt obligations under
the Indenture and demand immediate repayment in full and seek to
foreclose on the collateral supporting such obligations. If the
Company's debt obligations are accelerated or are not restructured
on acceptable terms, it is likely the Company will be unable to
repay such obligations and may seek protection under the U.S.
Bankruptcy Code or similar relief.
About Molecular Insight
Molecular Insight Pharmaceuticals is a clinical-stage
biopharmaceutical company and pioneer in molecular medicine. The
Company is focused on the discovery and development of targeted
therapeutic and imaging radiopharmaceuticals for use in oncology.
Molecular Insight has five clinical-stage candidates in
development. For further information on Molecular Insight
Pharmaceuticals, please visit www.molecularinsight.com.
MOUNT VERNON: Claims Filing Deadline Set for August 13
------------------------------------------------------
Judge Robert Drain of the U.S. Bankruptcy Court for the Southern
District of New York entered an order setting the deadline or bar
date for the filing of proofs of claim against Mount Vernon
Monetary Management Corp. and its affiliates, netDockets blog
reports.
According to the report, pursuant to the order, proofs of claim
asserting obligations arising prior to the date of the bankruptcy
filing must be filed so as to be actually received on or before
August 13, 2010 at 5:00 p.m. The order also expressly requires
the filing of proofs of claim by any party that "asserts that the
Debtors hold money or property in trust."
About Mount Vernon
Mount Vernon, New York-based Mount Vernon Monetary Management
Corp. filed for Chapter 11 bankruptcy protection on May 27, 2010
(Bankr. S.D.N.Y. Case No. 10-23053).
The report relates that Mount Vernon, together with its
affiliates, voluntarily filed for chapter 11 bankruptcy protection
after their president and COO were arrested and charged with bank
fraud.
Allen G. Kadish, Esq., at Greenberg Traurig, LLP, assists the
Company in its restructuring effort. The Company estimated its
assets and debts at $1,000,001 to $10,000,000.
MURRAY SEABOLT: Voluntary Chapter 11 Case Summary
-------------------------------------------------
Joint Debtors: Murray Wayne Seabolt
April Seabolt
1358 West Highway 5
Roopville, GA 30170
Bankruptcy Case No.: 10-12439
Chapter 11 Petition Date: June 29, 2010
Court: U.S. Bankruptcy Court
Northern District of Georgia (Newnan)
Debtor's Counsel: Theodore N. Stapleton, Esq.
Theodore N. Stapleton, P.C.
Suite 1740, Two Paces West
2727 Pace Ferry Road
Atlanta, GA 30339
Tel: (770) 436-3334
Fax: (770) 436-5398
E-mail: tstaple@tstaple.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $500,001 to $1,000,000
The Debtors did not file a list of creditors together with its
petition.
The petition was signed by the Joint Debtors.
NATIONAL ENVELOPE: Cenveo Protests Sale Deal With Gores Group
-------------------------------------------------------------
Bankruptcy Law360 reports that Cenveo Corp. has accused National
Envelope Corp. of failing to disclose an exclusive deal to sell
its business to private equity firm The Gores Group LLC, cutting
Cenveo and other would-be buyers out of the sale process.
Law360 says Cenveo filed a motion Wednesday in the U.S. Bankruptcy
Court for the District of Delaware saying it has offered
$140 million in cash for NEC business assets.
About National Envelope Corporation
Uniondale, New York-based National Envelope Corporation --
http://www.nationalenvelope.com/-- is the largest manufacturer of
envelopes in the world with 14 manufacturing facilities and 2
distribution centers and approximately 3,500 employees in the U.S.
and Canada. The company is an environmental leader in the paper
and envelope converting industries with certifications from the
Forest Stewardship Council (FSC), Rainforest Alliance, Sustainable
Forestry Initiative (SFI), Programme for the Endorsement of Forest
Certification (PEFC), Chlorine Free Products Association, and
Green Seal.
NEC Holdings Corp., together with affiliates, including National
Envelope Inc., filed for Chapter 11 on June 10, 2010 (Bankr. D.
Del. Lead Case No. 10-11890). Kara Hammond Coyle, Esq., at Young
Conaway Stargatt & Taylor LLP, serves as bankruptcy counsel.
David S. Heller, Esq., at Josef S. Athanas, Esq., and Stephen R.
Tetro II, Esq., at Latham & Watkins LLP, serve as co-counsel. The
Garden City Group is the claims and notice agent.
NEC Holdings' petition says assets and debts range from
$100,000,001 to $500,000,000.
NEENAH ENTERPRISES: Secures Exit Financing
------------------------------------------
Neenah Enterprises, Inc., has secured financing commitments for
its exit from bankruptcy. The confirmation hearing for the
Company's plan of reorganization has been scheduled for July 6,
2010, and the Company expects to close on the financing and emerge
from bankruptcy approximately two weeks later. Upon emergence,
the Company will have successfully reduced its debt by more than
$270 million.
In connection with its exit from bankruptcy, the Company will
transition to a new executive management team. Richard D. Caruso,
a Managing Director for Huron Consulting Services, LLC ("Huron"),
will serve as Acting Chief Executive Officer of the Company, and
Brent E. Johnson of Huron will serve as Acting Chief Financial
Officer of the Company. Mr. Caruso has served as Chief
Restructuring Advisor to the Company since it filed for bankruptcy
in February, 2010 and has over 25 years of experience in the
metals, manufacturing and construction industries. Korn Ferry
International, a leading executive recruiting firm, has been
retained to assist the Company in hiring permanent successors to
Mr. Caruso and Mr. Johnson, who will replace Robert E. Ostendorf,
Jr., the current President and Chief Executive Officer of the
Company and Dale E. Parker, the current Chief Financial Officer of
the Company. Mr. Ostendorf, recently announced his decision to
resign from his current positions. Mr. Ostendorf, who has served
as President and Chief Executive Officer since July 2007, will be
available to assist the Company with an orderly transition of his
responsibilities. Dale E. Parker, the Chief Financial Officer of
the Company, has also announced his intention to resign in
connection with the Company's exit from bankruptcy.
The Company also announced that William Barrett will serve as
Special Advisor to the Board and Chief Executive Officer. Mr.
Barrett was Chief Executive Officer of the Company from 2000
through 2007 and will provide valuable experience to the
reorganized Company.
On February 3, 2010, NEI and its subsidiaries filed voluntary
petitions for reorganization under Chapter 11 of the U.S.
Bankruptcy Code in the United States Bankruptcy Court for the
District of Delaware in order to consummate a balance sheet
restructuring while providing 100% recoveries to its suppliers and
vendors. Huron has served as the Company's restructuring advisors
during their reorganization process.
About Neenah Enterprises
Headquartered in Neenah, Wisconsin, Neenah Enterprises, Inc. --
http://www.nfco.com/-- is the indirect parent holding company of
Neenah Foundry Company. Neenah Foundry Company and its
subsidiaries manufacture and market a wide range of iron castings
and steel forgings for the heavy municipal market and selected
segments of the industrial markets. Neenah is one of the largest
independent foundry companies in the United States, with
substantial market share in the municipal and various industrial
markets for gray and ductile iron castings and forged steel
products.
The Company filed for Chapter 11 bankruptcy protection on
February 3, 2010 (Bankr. D. Del. Case No. 10-10360). Edmon L.
Morton, Esq., and Kenneth J. Enos, Esq., assist the Company in its
restructuring effort. The Company had $286,611,000 in total
assets against total liabilities of $449,435,000, resulting in
stockholder's deficit of $162,824,000.
The Company's affiliates -- NFC Castings, Inc.; Neenah Foundry
Company; Cast Alloys, Inc.; Neenah Transport, Inc.; Advanced Cast
Products, Inc.; Gregg Industries, Inc.; Mercer Forge Corporation;
Deeter Foundry, Inc.; and Dalton Corporation -- filed separate
Chapter 11 petitions.
NEENAH ENTERPRISES: Discloses New Executive Management Team
-----------------------------------------------------------
BankruptcyData.com reports that Neenah Enterprises announced that
upon its emergence from bankruptcy protection, the Company will
transition to a new executive management team.
Richard D. Caruso, a managing director for Huron Consulting
Services, will serve as acting chief executive officer of the
Company, and Brent E. Johnson of Huron will serve as acting chief
financial officer of the Company. Mr. Caruso has served as chief
restructuring advisor to the Company since is Chapter 11 filing.
Korn Ferry International has been retained to assist the Company
in hiring permanent successors to Mr. Caruso and Mr. Johnson, who
will replace Robert E. Ostendorf, Jr., the current president and
chief executive officer of the Company and Dale E. Parker, the
current chief financial officer of the Company. Mr. Ostendorf,
recently announced his decision to resign from his current
positions. Dale E. Parker, the chief financial officer of the
Company, has also announced his intention to resign in connection
with the Company's exit from bankruptcy. The Company also
announced that William Barrett will serve as a special advisor to
the board and chief executive officer.
About Neenah Enterprises
Headquartered in Neenah, Wisconsin, Neenah Enterprises, Inc. --
http://www.nfco.com/-- is the indirect parent holding company of
Neenah Foundry Company. Neenah Foundry Company and its
subsidiaries manufacture and market a wide range of iron castings
and steel forgings for the heavy municipal market and selected
segments of the industrial markets. Neenah is one of the largest
independent foundry companies in the United States, with
substantial market share in the municipal and various industrial
markets for gray and ductile iron castings and forged steel
products.
The Company filed for Chapter 11 bankruptcy protection on
February 3, 2010 (Bankr. D. Del. Case No. 10-10360). Edmon L.
Morton, Esq., and Kenneth J. Enos, Esq., assist the Company in its
restructuring effort. The Company had $286,611,000 in total
assets against total liabilities of $449,435,000, resulting in
stockholder's deficit of $162,824,000.
The Company's affiliates -- NFC Castings, Inc.; Neenah Foundry
Company; Cast Alloys, Inc.; Neenah Transport, Inc.; Advanced Cast
Products, Inc.; Gregg Industries, Inc.; Mercer Forge Corporation;
Deeter Foundry, Inc.; and Dalton Corporation -- filed separate
Chapter 11 petitions.
NEFF CORP: Obtains Final OK of $175 Million in DIP Financing
------------------------------------------------------------
Neff Rental, Inc. received final approval from the United States
Bankruptcy Court for the Southern District of New York for the
company's $175 million debtor-in-possession financing. Neff's
$175 million borrowing facility provides stability and ample
liquidity to fund daily operations without interruption, including
payments to vendors and to meet all customer and employee
obligations, during Neff's restructuring. Neff also received
authority to secure $175 million in fully committed exit
financing, providing Neff with a clear path to complete its
restructuring and emerge from Chapter 11 in the near term.
"We are pleased that the Court has approved our financing
arrangements and look forward to emerging from Chapter 11 in the
coming months as a healthier company," said Graham Hood, Neff's
chief executive officer.
Neff's restructuring is supported by, among others, certain
creditors holding approximately 67% of the aggregate principal
amount of Neff's first lien term loan, who have agreed to vote in
favor of Neff's prearranged plan, exchange their first lien term
loans for equity, and have committed to backstop a new equity
investment of up to $119 million to recapitalize Neff's business
and provide for future capital needs. The Court is scheduled to
consider whether to approve the disclosure statement for Neff's
prearranged plan on July 12, 2010.
The Chapter 11 Plan
Neff Corp. has submitted a plan negotiated with lenders
prepetition. It will present the disclosure statement for
approval of July 12.
Unsecured creditors are expected to recover only 1% under the
Plan. Holders of allowed revolving credit facility claims will be
paid in full in cash on account of their Claims and the Debtors'
first lien term loan lenders will receive a full recovery under
the Plan in the form of cash or New Common Units in the Purchaser
(at their election).
The Chapter 11 restructuring will be effectuated through various
transactions, including, among other things, consummating a sale
of substantially all of the Debtors' assets. Additionally, the
Debtors will also effectuate the rights offering under the plan
for up to $119 million in new common units of the purchaser to the
holders of first lien and second lien claims.
Copies of the Plan and disclosure statement are available for free
at:
http://bankrupt.com/misc/NEFF_CORP_plan.pdf
http://bankrupt.com/misc/NEFF_CORP_ds.pdf
About Neff Corp.
Privately held Neff Corp., doing business as Neff Rental, provides
construction companies, golf course developers, industrial plants,
the oil industry, and governments with reliable and quality
equipment that is delivered on time where it is needed. With more
than 1,000 employees operating from branches coast to coast, Neff
Rental is ranked by Rental Equipment Register (RER) magazine as
one of the nation's 10 largest equipment rental companies.
Neff Corp. and its units, including Neff Rental Inc. filed for
Chapter 11 on May 17, 2010 (Bankr. S.D.N.Y. Case No. 10-12610).
Based in Miami, Neff has assets of $299 million and debt of
$609 million, according to the disclosure statement explaining the
plan. Funded debt totals $580 million. Revenue in 2009 was
$192 million.
NEW YORK CHOCOLATE: DoveBid Acquires Assets for $2.5 Million
------------------------------------------------------------
Jacqueline Palank at Dow Jones Daily Bankruptcy Review reports
that a group including GoIndustry DoveBid, an asset manager and
auctioneer, won the bidding for New York Chocolate & Confections
Co.'s assets. The group's final offer was $2.5 million.
Ms. Palank relates the auction, which lacked a leading bidder but
set a floor price of $465,000, drew multiple bidders. The report
says court records show that a federal bankruptcy judge in
Syracuse approved the sale Wednesday. Other firms in on the deal
are Union Confectionary Machinery Co., Loeb Equipment Supply,
Aaron Equipment and Carbonstead LLC.
Ms. Palank also reports the bankruptcy attorney told the Post-
Standard that "kids" entered the building between late Monday and
early Thursday and used fire extinguishers to cause minor damage
to one building on its 39-acre manufacturing campus in Fulton,
N.Y., once a major Nestle production facility. Some equipment was
stolen, and other equipment was damaged.
An auction for the Company's assets was set for last Wednesday.
Ms. Palank relates the break-in pushed back the auction's start
time by three hours, and all bidders were told what happened and
were given the chance to inspect the plant before making their
offers.
The report says a watchman's been tapped to keep an eye on things
until the sale closes.
About New York Chocolate
The New York Chocolate and Confections Co. operates in the former
Nestle chocolate plant in Fulton.
New York Chocolate filed for Chapter 11 on April 14, 2010 (Bankr.
N.D. N.Y. Case No. 10-30963). Geoffrey Raicht, Esq., at
McDermott Will & Emery, LLP, represents the Debtor in its Chapter
11 effort. The petition said that assets total $1,000,001 to
$10,000,000 while debts range from $500,001 to $1,000,000.
NEWLOOK INDUSTRIES: Will Delay Financial Statements Filing
----------------------------------------------------------
Newlook Industries Corp. will delay the filing of its financial
statements for the year ended December 31, 2009, along with the
associated management discussion and analysis and CEO/CFO
certifications as more time is required to complete its audit.
Deloitte & Touche LLP, the Company's auditors, are presently
engaged in conducting their field work in relation to the audit of
the Company's annual financial statements. Newlook has made
significant progress in obtaining the audit of the annual
financial statements, and completion of the audit is imminent.
The Company expects to file its Annual Filings within the month of
July 2010.
As a result of the delay in the Annual Filings, the Company shall
delay the filing of its financial statements for the quarter ended
March 31, 2010, along with the associated MD&A and CEO/CFO
certification until such time that it files the Annual Filings.
The delay in filing both the required Annual and Interim Filings
beyond June 30, 2010 exceeds the end of the two month period
contemplated by National Policy 12-203 for the management cease
trade order currently in place. As such, it is anticipated that
the Ontario Securities Commission will issue a temporary general
cease trade order to replace the MCTO.
Under the procedures of the OSC, this temporary order is expected
to be replaced by a permanent order by July 20, 2010 or
thereabouts. The permanent order would be expected to be in place
until shortly after the receipt by the OSC of all Annual and
Interim Filings that the Company is required to make.
Newlook shall continue to keep the market continuously informed of
any developments during the period of default.
About Newlook Industries
Newlook Industries Corp., headquartered in King City, Ontario
is a publicly traded company listed on the TSX Venture Exchange.
For more information please call (905) 833-3072 or refer
to http://www.sedar.com.
NORTEL NETWORKS: Seeks Canada OK for Claims Resolution Process
--------------------------------------------------------------
Nortel Networks Corp. and four of its Canadian affiliates or he
CCAA Applicants seek approval from the Ontario Superior Court of
Justice to implement a process for determining claims asserted
against them.
The proposed claims resolution process, if approved, would
authorize the CCAA Applicants' Court-appointed monitor, Ernst &
Young Inc., to determine claims that were filed for voting and
distribution purposes in connection with the Applicants' plan of
compromise or arrangement.
As of June 8, 2010, about 962 proofs of claim that assert a total
amount of C$30.352 million had been filed against the Applicants,
according to Ernst & Young's 48th monitor report.
Under the proposed process, Ernst & Young will be authorized will
review each proof of claim. Upon review, Ernst & Young may
request additional information from a creditor; request the
creditor to file a revised proof of claim; decide to resolve the
amount of the claim with the creditor; or accept the amount or
status of the claim. The Monitor may also revise or disallow the
claim by delivering to the creditor a notice of disallowance or a
notice of dispute form for administrative purposes.
Any creditor who intends to dispute the amount of its claim as
set out in the notice of disallowance will be required to file a
notice of dispute with Ernst & Young within 14 days after
receiving the notice of disallowance.
In connection with the implementation of the claims resolution
process, NNC also asks the Canadian Court to appoint Donald
Brenner QC, William Horton, and Andrew Diamond as claims officers
to assist the Monitor in determining disputed claims.
Mr. Brenner is a senior counsel at Farris Vaughan Wills & Murphy.
Mr. Horton was a former partner at Blake Cassels & Graydon LLP.
Mr. Diamond is a public sector adjudicator and mediator, and a
member of the Ontario Human Rights Tribunal.
"As a result of the volume and complexity of the proofs of claim
filed, the resources required to reconcile such claims and the
likelihood that many of the claims will require significant
effort and time to resolve, undertaking the resolution of claims
at this time is prudent," Ernst & Young says in its 48th monitor
report.
About Nortel Networks
Nortel Networks (OTC BB: NRTLQ) -- http://www.nortel.com/--
delivers communications capabilities that make the promise of
Business Made Simple a reality for the Company's customers. The
Company's next-generation technologies, for both service provider
and enterprise networks, support multimedia and business-critical
applications. Nortel's technologies are designed to help
eliminate the barriers to efficiency, speed and performance by
simplifying networks and connecting people to the information they
need, when they need it.
Nortel Networks Corp., Nortel Networks Inc., and other affiliated
corporations in Canada sought insolvency protection under the
Companies' Creditors Arrangement Act in the Ontario Superior Court
of Justice (Commercial List). Ernst & Young was appointed to
serve as monitor and foreign representative of the Canadian Nortel
Group.
The Monitor sought recognition of the CCAA Proceedings in the U.S.
by filing a bankruptcy petition under Chapter 15 of the U.S.
Bankruptcy Code (Bankr. D. Del. Case No. 09-10164). Mary Caloway,
Esq., and Peter James Duhig, Esq., at Buchanan Ingersoll & Rooney
PC, in Wilmington, Delaware, serves as the Chapter 15 petitioner's
counsel.
Nortel Networks Inc. and 14 affiliates filed separate Chapter 11
petitions on January 14, 2009 (Bankr. D. Del. Case No. 09-10138).
Judge Kevin Gross presides over the case. James L. Bromley, Esq.,
at Cleary Gottlieb Steen & Hamilton, LLP, in New York, serves as
general bankruptcy counsel; Derek C. Abbott, Esq., at Morris
Nichols Arsht & Tunnell LLP, in Wilmington, serves as Delaware
counsel. The Chapter 11 Debtors' other professionals are Lazard
Freres & Co. LLC as financial advisors; and Epiq Bankruptcy
Solutions LLC as claims and notice agent.
Certain of Nortel's European subsidiaries also made consequential
filings for creditor protection. The Nortel Companies related in
a press release that Nortel Networks UK Limited and certain
subsidiaries of the Nortel group incorporated in the EMEA region
have each obtained an administration order from the English High
Court of Justice under the Insolvency Act 1986. The applications
were made by the EMEA Subsidiaries under the provisions of the
European Union's Council Regulation (EC) No. 1346/2000 on
Insolvency Proceedings and on the basis that each EMEA
Subsidiary's centre of main interests is in England. Under the
terms of the orders, representatives of Ernst & Young LLP have
been appointed as administrators of each of the EMEA Companies and
will continue to manage the EMEA Companies and operate their
businesses under the jurisdiction of the English Court and in
accordance with the applicable provisions of the Insolvency Act.
Several entities, particularly, Nortel Government Solutions
Incorporated have material operations and are not part of the
bankruptcy proceedings.
As of September 30, 2008, Nortel Networks Corp. reported
consolidated assets of US$11.6 billion and consolidated
liabilities of US$11.8 billion. The Nortel Companies' U.S.
businesses are primarily conducted through Nortel Networks Inc.,
which is the parent of majority of the U.S. Nortel Companies. As
of September 30, 2008, NNI had assets of about US$9 billion and
liabilities of US$3.2 billion, which do not include NNI's
guarantee of some or all of the Nortel Companies' about
US$4.2 billion of unsecured public debt.
Bankruptcy Creditors' Service, Inc., publishes Nortel Networks
Bankruptcy News. The newsletter tracks the Chapter 11 proceeding
and ancillary foreign proceedings undertaken by Nortel Networks
Corp. and its various affiliates. (http://bankrupt.com/newsstand/
or 215/945-7000)
NORTEL NETWORKS: Ontario Court Rejects UK Regulator's Appeal
------------------------------------------------------------
The Ontario Court of Appeals has dismissed an appeal of a U.K.
pensions regulator to overturn a decision of a judge who oversees
the cases of Nortel Networks Corp. and its affiliates.
The U.K. regulator earlier appealed the February 26, 2010 ruling
of Ontario Superior Court Judge Geoffrey Morawetz, which granted
in part the request of Ernst & Young Inc., as the Court-appointed
monitor for the CCAA Applicants, for a declaration that the
commencement of a proceeding by the U.K. regulator against the
CCAA Applicants is a violation of the Canadian Court's initial
order issued on January 14, 2009.
In a three-page order, the Ontario Court of Appeals said that it
agrees with Judge Morawetz's findings that the service of a
warning notice by the U.K. regulator breached the stay provisions
of the Initial CCAA Order.
"The service of the notice is, therefore a nullity for purposes
of the Companies' Creditors Arrangement Act proceedings," the
Ontario Court of Appeals held.
The U.K. regulator sent the warning notice early this year to NNC
and Nortel Networks Ltd., informing that it is considering the
issuance of a financial support direction against the CCAA
Applicants in connection with Nortel Networks UK Ltd. The
pensions regulator made the move after it found out that the
pension scheme sponsored by NNUK had a funding deficit of more
than GBP2 billion.
An FSD is a direction issued to an employer or an entity
connected with that employer to secure financial support for a
pension plan. Securing a FSD would allow the U.K. regulator to
make a claim on the far-flung assets of the Nortel entities;
without it, the regulator could only assert a claim on NNUK's
assets.
About Nortel Networks
Nortel Networks (OTC BB: NRTLQ) -- http://www.nortel.com/--
delivers communications capabilities that make the promise of
Business Made Simple a reality for the Company's customers. The
Company's next-generation technologies, for both service provider
and enterprise networks, support multimedia and business-critical
applications. Nortel's technologies are designed to help
eliminate the barriers to efficiency, speed and performance by
simplifying networks and connecting people to the information they
need, when they need it.
Nortel Networks Corp., Nortel Networks Inc., and other affiliated
corporations in Canada sought insolvency protection under the
Companies' Creditors Arrangement Act in the Ontario Superior Court
of Justice (Commercial List). Ernst & Young was appointed to
serve as monitor and foreign representative of the Canadian Nortel
Group.
The Monitor sought recognition of the CCAA Proceedings in the U.S.
by filing a bankruptcy petition under Chapter 15 of the U.S.
Bankruptcy Code (Bankr. D. Del. Case No. 09-10164). Mary Caloway,
Esq., and Peter James Duhig, Esq., at Buchanan Ingersoll & Rooney
PC, in Wilmington, Delaware, serves as the Chapter 15 petitioner's
counsel.
Nortel Networks Inc. and 14 affiliates filed separate Chapter 11
petitions on January 14, 2009 (Bankr. D. Del. Case No. 09-10138).
Judge Kevin Gross presides over the case. James L. Bromley, Esq.,
at Cleary Gottlieb Steen & Hamilton, LLP, in New York, serves as
general bankruptcy counsel; Derek C. Abbott, Esq., at Morris
Nichols Arsht & Tunnell LLP, in Wilmington, serves as Delaware
counsel. The Chapter 11 Debtors' other professionals are Lazard
Freres & Co. LLC as financial advisors; and Epiq Bankruptcy
Solutions LLC as claims and notice agent.
Certain of Nortel's European subsidiaries also made consequential
filings for creditor protection. The Nortel Companies related in
a press release that Nortel Networks UK Limited and certain
subsidiaries of the Nortel group incorporated in the EMEA region
have each obtained an administration order from the English High
Court of Justice under the Insolvency Act 1986. The applications
were made by the EMEA Subsidiaries under the provisions of the
European Union's Council Regulation (EC) No. 1346/2000 on
Insolvency Proceedings and on the basis that each EMEA
Subsidiary's centre of main interests is in England. Under the
terms of the orders, representatives of Ernst & Young LLP have
been appointed as administrators of each of the EMEA Companies and
will continue to manage the EMEA Companies and operate their
businesses under the jurisdiction of the English Court and in
accordance with the applicable provisions of the Insolvency Act.
Several entities, particularly, Nortel Government Solutions
Incorporated have material operations and are not part of the
bankruptcy proceedings.
As of September 30, 2008, Nortel Networks Corp. reported
consolidated assets of US$11.6 billion and consolidated
liabilities of US$11.8 billion. The Nortel Companies' U.S.
businesses are primarily conducted through Nortel Networks Inc.,
which is the parent of majority of the U.S. Nortel Companies. As
of September 30, 2008, NNI had assets of about US$9 billion and
liabilities of US$3.2 billion, which do not include NNI's
guarantee of some or all of the Nortel Companies' about
US$4.2 billion of unsecured public debt.
Bankruptcy Creditors' Service, Inc., publishes Nortel Networks
Bankruptcy News. The newsletter tracks the Chapter 11 proceeding
and ancillary foreign proceedings undertaken by Nortel Networks
Corp. and its various affiliates. (http://bankrupt.com/newsstand/
or 215/945-7000)
NORTEL NETWORKS: Calgary Employees Seeks to Pursue Claims
---------------------------------------------------------
A group of employees of Nortel Networks Corp. sought and obtained
an order from the Ontario Superior Court of Justice authorizing
them to serve an amended statement of claim.
The Employee Group asserts claim against NNC and its Canadian
affiliates on account of unpaid wages. The employees were
terminated after Nortel shut down is operations in Calgary,
Alberta.
The filing of the statement of claim, the Employees said, would
preserve their right to later bring an action against Nortel's
directors under the Canada Business Corporations Act should
Nortel's restructuring be unsuccessful.
About Nortel Networks
Nortel Networks (OTC BB: NRTLQ) -- http://www.nortel.com/--
delivers communications capabilities that make the promise of
Business Made Simple a reality for the Company's customers. The
Company's next-generation technologies, for both service provider
and enterprise networks, support multimedia and business-critical
applications. Nortel's technologies are designed to help
eliminate the barriers to efficiency, speed and performance by
simplifying networks and connecting people to the information they
need, when they need it.
Nortel Networks Corp., Nortel Networks Inc., and other affiliated
corporations in Canada sought insolvency protection under the
Companies' Creditors Arrangement Act in the Ontario Superior Court
of Justice (Commercial List). Ernst & Young was appointed to
serve as monitor and foreign representative of the Canadian Nortel
Group.
The Monitor sought recognition of the CCAA Proceedings in the U.S.
by filing a bankruptcy petition under Chapter 15 of the U.S.
Bankruptcy Code (Bankr. D. Del. Case No. 09-10164). Mary Caloway,
Esq., and Peter James Duhig, Esq., at Buchanan Ingersoll & Rooney
PC, in Wilmington, Delaware, serves as the Chapter 15 petitioner's
counsel.
Nortel Networks Inc. and 14 affiliates filed separate Chapter 11
petitions on January 14, 2009 (Bankr. D. Del. Case No. 09-10138).
Judge Kevin Gross presides over the case. James L. Bromley, Esq.,
at Cleary Gottlieb Steen & Hamilton, LLP, in New York, serves as
general bankruptcy counsel; Derek C. Abbott, Esq., at Morris
Nichols Arsht & Tunnell LLP, in Wilmington, serves as Delaware
counsel. The Chapter 11 Debtors' other professionals are Lazard
Freres & Co. LLC as financial advisors; and Epiq Bankruptcy
Solutions LLC as claims and notice agent.
Certain of Nortel's European subsidiaries also made consequential
filings for creditor protection. The Nortel Companies related in
a press release that Nortel Networks UK Limited and certain
subsidiaries of the Nortel group incorporated in the EMEA region
have each obtained an administration order from the English High
Court of Justice under the Insolvency Act 1986. The applications
were made by the EMEA Subsidiaries under the provisions of the
European Union's Council Regulation (EC) No. 1346/2000 on
Insolvency Proceedings and on the basis that each EMEA
Subsidiary's centre of main interests is in England. Under the
terms of the orders, representatives of Ernst & Young LLP have
been appointed as administrators of each of the EMEA Companies and
will continue to manage the EMEA Companies and operate their
businesses under the jurisdiction of the English Court and in
accordance with the applicable provisions of the Insolvency Act.
Several entities, particularly, Nortel Government Solutions
Incorporated have material operations and are not part of the
bankruptcy proceedings.
As of September 30, 2008, Nortel Networks Corp. reported
consolidated assets of US$11.6 billion and consolidated
liabilities of US$11.8 billion. The Nortel Companies' U.S.
businesses are primarily conducted through Nortel Networks Inc.,
which is the parent of majority of the U.S. Nortel Companies. As
of September 30, 2008, NNI had assets of about US$9 billion and
liabilities of US$3.2 billion, which do not include NNI's
guarantee of some or all of the Nortel Companies' about
US$4.2 billion of unsecured public debt.
Bankruptcy Creditors' Service, Inc., publishes Nortel Networks
Bankruptcy News. The newsletter tracks the Chapter 11 proceeding
and ancillary foreign proceedings undertaken by Nortel Networks
Corp. and its various affiliates. (http://bankrupt.com/newsstand/
or 215/945-7000)
NOVELIS INC: Moody's Upgrades Corporate Family Rating to 'Ba3'
--------------------------------------------------------------
Moody's Investors Service upgraded the ratings of Novelis Inc. and
Novelis Corporation, including the company's corporate family
rating to Ba3 from B2, its senior notes to B1 from Caa1, and its
speculative grade liquidity rating to SGL-1 from SGL-2. The
upgrades reflect the fundamentally more stable financial profile
of the company in the wake of the elimination of can sheet
contracts having price ceilings and the achievement of
$140 million of sustainable annual cost savings. In addition, the
company's near-term financial outlook is poised to benefit from
negotiated price increases, the continuing recovery of the
company's industrial and automotive end markets, and increasing
capacity utilization. The rating outlooks for Novelis Inc. and
Novelis Corporation are stable.
The upgrade to an SGL-1 speculative grade liquidity rating
reflects Moody's expectation that Novelis' free cash flow over the
next 12 months will be in the $300-400 million range and that
availability under its asset-based revolver will increase as its
business and the ABL's borrowing base expand. The company had
total liquidity of $1.0 billion at March 31, 2010 (its fiscal
year-end), including cash of $437 million and ABL availability of
$603 million.
Novelis' Ba3 corporate family rating considers the company's large
scale, significant market position, and global footprint in the
aluminum rolled products market, including its dominant market
position in relatively stable beverage and food can sheet and good
positions in industrial, transportation, and foil and packaging.
As of January 1, 2010, the company no longer had contracts with
price ceilings, which had led to losses over the last several
years as market-based aluminum prices exceeded certain levels
(often around $1,900 per tonne). Moody's believe that this
fundamental change will result in greater stability and enhanced
margins going forward. While can sheet margins may continue to be
modest, the resulting stability, combined with improving demand
and Novelis' cost reductions, should strengthen the company's debt
protection metrics and allow it to more consistently generate free
cash flow.
The Ba3 corporate family rating also reflects the variability of
Novelis' sales to the construction and automotive end markets, the
sensitivity of its earnings to volume levels given the level of
fixed costs, and its low return on assets.
The stable outlook reflects Moody's belief that Novelis has raised
its base level of earnings and cash flow to a higher level, from
which it will be able to consistently record metrics appropriate
for a mid-to low-Ba rating. As noted, the company's liquidity is
very good and it should be able to build up cash even with
increased working capital needs and capital expenditures.
Upgrades:
Issuer: Novelis Corporation
-- Senior Secured Bank Credit Facility, Upgraded to Ba1, LGD2,
25% from Ba3
Issuer: Novelis Inc.
-- Probability of Default Rating, Upgraded to Ba3 from B2
-- Speculative Grade Liquidity Rating, Upgraded to SGL-1 from
SGL-2
-- Corporate Family Rating, Upgraded to Ba3 from B2
-- Senior Secured Bank Credit Facility, Upgraded to Ba1, LGD2,
25% from Ba3
-- Senior Unsecured Regular Bond/Debenture, Upgraded to B1,
LGD5, 77% from Caa1
Moody's last rating action on Novelis was November 17, 2009, when
the company's rating outlook was changed to stable from negative.
Headquartered in Atlanta, Georgia, Novelis is the world's largest
producer of aluminum rolled products, with operations in North and
South America, Europe, and Asia. In its fiscal year ended
March 31, 2010, Novelis had $8.7 billion of revenues and
approximately 2.7 million tonnes of rolled aluminum shipments,
approximately 56% of which were beverage and food cans.
OM SHIVAI: Case Summary & 19 Largest Unsecured Creditors
--------------------------------------------------------
Debtor: Om Shivai Inc.
3217 Lancaster Hwy.
Richburg, SC 29729
Bankruptcy Case No.: 10-04588
Chapter 11 Petition Date: June 29, 2010
Court: United States Bankruptcy Court
District of South Carolina (Columbia)
Judge: David R. Duncan
Debtor's Counsel: Lemuel Showell Blades, IV, Esq.
131 Caldwell Street
P.O. Box 10671
Rock Hill, SC 29731
Tel: (803) 329-6115
E-mail: showell@showellblades.com
Estimated Assets: $100,001 to $500,000
Estimated Debts: $1,000,001 to $10,000,000
A list of the Company's 19 largest unsecured creditors
filed together with the petition is available for free
at http://bankrupt.com/misc/scb10-04588.pdf
The petition was signed by Varsha Desai, president.
OPTI CANADA: Six Nominees Elected to Board of Directors
-------------------------------------------------------
OPTI Canada Inc. reported the election of nominees as directors of
the Corporation to hold office until the next annual meeting of
shareholders:
* Ian W. Delaney
* Charles L. Dunlap
* Edythe Marcoux
* Christopher Slubicki
* James M. Stanford
* Bruce Waterman
About OPTI
OPTI Canada Inc. is a Calgary, Alberta-based company focused on
developing major oil sands projects in Canada using its
proprietary OrCrude(TM) process. OPTI's common shares trade on
the Toronto Stock Exchange under the symbol OPC.
OPTI continues to carry Moody's Caa2 corporate rating and Standard
& Poor's B- corporate rating.
The Company's balance sheet at March 31, 2010, showed C$3.7
billion in total assets and C$2.5 billion in total liabilities for
a C$763.0 million in stockholders' deficit.
ORITE HOTELS: Case Summary & 20 Largest Unsecured Creditors
-----------------------------------------------------------
Debtor: Orite Hotels of Indiana, Inc.
fdba Quality Hotel
dba Fort Wayne Hotel and Fundome
3330 W. Coliseum Blvd.
Fort Wayne, IN 46808
Bankruptcy Case No.: 10-12884
Chapter 11 Petition Date: June 29, 2010
Court: United States Bankruptcy Court
Northern District of Indiana (Fort Wayne Division)
Judge: Robert E. Grant
Debtor's Counsel: Grant F. Shipley, Esq.
E-mail: gfs@gshipley.com
Laura M. Boyer, Esq.
E-mail: lmb@gshipley.com
Shipley & Associates
233 West Baker Street
Fort Wayne, IN 46802-3413
Tel: (260) 422-2700
Fax: (260) 424-2960
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/innb10-12884.pdf
The petition was signed by Abraham Vaknin, president.
OSCIENT PHARMACEUTICALS: Joint Plan of Reorganization Confirmed
---------------------------------------------------------------
BankruptcyData.com reports that the U.S. Bankruptcy Court signed
an order confirming Oscient Pharmaceuticals' First Amended Joint
Plan of Reorganization. Under the Plan, the Company's estate will
be liquidated and any remaining assets will be distributed to
creditors. The Plan also includes a settlement between Oscient,
Guardian and Paul Royalty Fund Holdings II, as well as a
settlement between Oscient, Guardian and Abbott Laboratories.
About Oscient Pharmaceuticals
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.
PALM BEACH: Moody's Downgrades Rating on $45.5 Mil. Bonds to 'Ba1'
------------------------------------------------------------------
Moody's Investors Service has downgraded to Ba1 from Baa3 the
underlying rating on Palm Beach Port District's (FL) $45.5 million
of outstanding revenue bonds. The outlook remains negative. The
downgrade reflects the port's volatile operations with a multi-
year decline in cargo, TEUs, and cruise passengers due to both the
economic downturn and an erosion of the port's market position
given the high degree of competition in the port's region. The
downgrade also incorporates the port's significant concentration
in two revenue generators and narrow debt service coverage levels
that were below the port's 110% rate covenant in fiscal years 2008
and 2009, but are projected to be at or near the rate covenant in
fiscal 2010 (ends September 30) due to a new multi-day cruise
contract and smaller shipping contracts. The outlook remains
negative given the ongoing uncertainty surrounding the port's
fundamental market position and financial performance.
Improvements in the port's performance is dependent on its ability
to solidify additional contracts in a highly competitive market as
the unstable economy begins to slowly recover.
Legal Security: The bonds are secured by a pledge of the Port's
gross revenues. Additional security is provided by a rate
covenant requiring net revenues to be 110% of MADS if there are no
recurring operating grants, which there aren't or 125% of MADS
when including recurring operating grants; an additional bonds
test requiring net revenues in 12 consecutive of the past 24
months to be 125% of MADS to issue additional debt; and a cash
funded debt service reserve fund at the lesser of the standard 3-
pronged test
The port did not meet its 110% rate covenant in both FY2008 and
FY2009.
Interest Rate Derivatives: None.
Strengths
* Satisfactory liquidity of approximately $12 million (including
available construction funds) will provide key credit support
while the port pursues new revenues and financial recovery
* Management has proactively implemented expenditure cuts and
successfully obtained new business in FY10 with additional
opportunities on the horizon
* Recently renewed 5-year contract with Tropical Shipping, the
ports largest revenue generator, and a new 5-year contract with
Bahamas Celebration, second largest revenue generator, for
multi-day cruises is performing better than expected
* Authority to levy property taxes up to $200,000 annually for
operations and, with voter approval, to issue general obligation
debt secured by an unlimited property tax, but these scenarios
are unlikely
Challenges
* Very tight financial margins continue with debt service coverage
below 1.0x in FY2008 and FY2009 but projected to be at or near
the rate covenant of 1.1x in FY2010
* Deteriorated market position with significant declines in cargo
over the last four years and 17.5% drop in cruise passengers in
FY2009 alone, due to the bankruptcy of a cruise operator
* Significant revenue concentration from two primary contracts
limits financial flexibility
* Financial recovery relies on implementation of new and somewhat
speculative business opportunities
* Weak market position defined by scale of operations, exposure to
economically-sensitive passenger cruise market and Caribbean
trade, competition from larger nearby facilities at Port
Everglades and Port of Miami, and revenue concentration in two
top customers
Recent Developments
While the port has successfully raised tariffs, cut costs, and
signed a couple of new contracts in the last year, the fundamental
deterioration of its market position from historical levels
coupled with significant concentration from two revenue generators
and uncertain near-term financial performance warrant the below
investment grade rating. The port's revenue raising and cost
cutting efforts are projected to generate sufficient net revenues
to cover debt service at least 1.0x and may meet the rate covenant
of 1.1x. This is an improvement from FY2008 and FY2009, when debt
service coverage was 0.65x and 0.7x respectively, on a net revenue
basis. Year-to-date performance in FY2010 is ahead of FY2009, as
revenues are up $1.4 million and expenses are down $400,000
through May, if this trend continues the port may meet its rate
covenant for the first time since 2007. While illustrating the
beginning of a turnaround, the port's volatile business and
limited scope of operations could result in another rate covenant
violation in an uncertain economic environment.
Positively, while fiscal year-end results remain uncertain,
Moody's expects the port's liquidity will remain at or near FY2009
levels of approximately 381 days cash on hand, an improvement over
the 280 days cash in FY2008. Fiscal 2009 cash levels improved due
to a 13% expense decline from cuts and non-recurring one-time
expenses in FY2008, as well as the collection of a large grant
receivable at the end of FY2008. The port's steady available cash
balances are key to maintaining the rating at its current level
and provide the necessary cushion given the port's significant
revenue concentration and limited operating flexibility.
The port's recent improved financial performance also reflects an
increase in total cargo tonnage (including bulk and container),
which has increased 18% through May. This trend reverses the 18%
decline experienced in FY2009. The increased cargo load is
primarily from more sugar and fuel oil shipments, two of the
port's largest commodities. Cruise passengers are significantly
down 25% year-to-date, due to the bankruptcy of the port's single-
day casino cruise operator in February 2010. Fortunately, the
port was able to sign a 5-year contract with Bahamas Celebration
for multi-day cruises that started in March 2010. The monthly
revenues generated under the new contract have exceeded
expectations to date and if the current trends hold, cruise
passengers will be down 20% for the year. This new contract is
key to the port's future viability and will be the port's second
largest revenue generator after Tropical Shipping, owned by Nicor,
Inc. (Preferred Stock Rating Baa2/Stable), that trades primarily
with the Caribbean and recently renewed its 5-year contract with
the port. These two contracts are projected to generate up to 60%
of the port's annual revenues and the loss of either would
significantly impact the port's credit quality if they were not
replaced in a timely manner.
The port also secured two shipping contracts for sugar and bottom
ash, yielding about $350,000 of new annual revenue, and is
currently in discussions for a multi-year salt contract, a day
casino cruise operator, and two biofuel importers. The port's
financial turnaround will depend on its ability to secure these
new business opportunities in the near-term and will weigh heavily
in future rating reviews.
The port recently removed itself from the development of an
Intermodal Logistics Center in the county due to the scale and
complexity of the project with multiple governmental entities and
agencies involved, but the port may participate in a consulting
role and will use the facility once it is operational.
Outlook
The negative outlook is based on the uncertainty surrounding the
port's financial performance and its ability to formalize and
implement new business opportunities in order to maintain
structural balance and meet its rate covenant for debt service
coverage. The outlook also reflects the uncertain economic
recovery in the region and its impact on operations given the
port's exposure to economically sensitive business partners and
trade routes and its highly competitive market area.
What could change the rating -- UP
Stabilized market position with new revenue streams, maintenance
of strong liquidity levels, maintenance of structural balance and
improved debt service coverage that consistently meets the port's
rate covenant and are in line with comparable enterprises.
What could change the rating -- DOWN
Deterioration of market position, inability to generate new
revenues sufficient to achieve structurally balanced finances,
decreased liquidity position, maintenance of debt service coverage
below the rate covenant.
Key Statistics
* Port type: Landlord
* Cruise passengers, FY 2009: 349,800
* Containers, FY 2009: 216,000
* Bulk & Breakbulk Tonnage, FY2009: 1.25 million short tons
* Total Tonnage, FY 2009: 2.4 million short tons
* Debt Service Coverage - net revenue basis, FY 2008: 0.65x
* Debt Service Coverage - net revenue basis, FY 2009: 0.70x
* Gross Revenues, FY2009: $10.6 million
* Operating Expenditures, FY2009: $7.7 million
* Debt Service Expenditures, FY2009: $4.2 million
* Debt Ratio, FY2009: 32.8%
* Debt Outstanding: $45.5 million
* Days Cash on Hand, FY2009: 381
The last rating action with respect to Palm Beach Port District,
FL was on July 23, 2009, when a Baa3 municipal scale rating with a
negative outlook was assigned. The rating subsequently
recalibrated to Baa3 with a negative outlook on the global scale
on May 3, 2010.
PARLUX FRAGRANCES: Completes Financing Deal With GE Capital
-----------------------------------------------------------
Parlux Fragrances Inc. said it successfully completed an agreement
with GE Capital Corporate Finance for a two-year $20 million
senior secured revolving credit facility.
The asset based credit facility will be used for general working
capital requirements, including new licenses, and to strengthen
the Company's ability to meet seasonal requirements.
Frederick E. Purches, Chairman and CEO, said, "GE Capital is an
outstanding financial organization and we are pleased by their
confidence. Although we currently have in excess of $10 million
in cash and no bank debt, the availability of this facility
provides additional support to fund our planned growth." Mr.
Purches added, "I believe GE Capital's involvement with Parlux
will be most beneficial and look forward to working closely with
them."
About Parlux Fragrances
Parlux Fragrances, Inc. (NASDAQ:PARL) -- http://www.parlux.com/--
is a manufacturer and international distributor of prestige
products. It holds licenses for Paris Hilton, Jessica Simpson,
GUESS?, Nicole Miller, Josie Natori, Queen Latifah, Marc Ecko,
Rihanna, Kanye West, XOXO, Ocean Pacific (OP), Andy Roddick,
babyGund, and Fred Hayman Beverly Hills designer fragrances, as
well as Paris Hilton watches, cosmetics, sunglasses, handbags and
other small leather accessories.
As of Dec. 31, 2009, the Company has $112.3 million in total
assets and $17.5 million in total liabilities, resulting to
$109.4 million stockholders' equity.
Extension of Forbearance Period
As reported in the Troubled Company Reporter, the Company on
October 29, 2009, entered into a Second Amendment to Loan
Agreement and Amendment to Forbearance Agreement with Regions Bank
extending the forbearance period through February 15, 2010, and
calling for the Company to repay the remaining loan balance over
the course of the extension period. The Second Amendment requires
the Company to continue to comply with certain covenants with
Regions under the Loan Agreement.
As of December 31, 2009, the Company was not in compliance with
its fixed charge coverage and funded debt to EBITDA covenants
under the Loan Agreement, as amended. As of February 4, 2010, the
Company has $1.1 million in outstanding borrowings under the Loan
Agreement, which was scheduled for repayment on February 15, 2010.
The Company, in its third fiscal quarter report for the period
ended December 31, 2009 -- which report was filed on February 4,
2010 -- said it believes that funds from operations will be
sufficient to meet current operating and seasonal needs through
June 30, 2010. The Company said it continues to seek replacement
financing with the objective of having a new financing arrangement
in place in anticipation of next year's major production season.
PAUL REINIGER: Case Summary & 5 Largest Unsecured Creditors
-----------------------------------------------------------
Joint Debtors: Paul E. Reiniger
dba Reiniger Property
Marsha A. Reiniger
406 Westwood
Collinsville, IL 62234
Bankruptcy Case No.: 10-31744
Chapter 11 Petition Date: June 30, 2010
Court: United States Bankruptcy Court
Southern District of Illinois (East St Louis)
Judge: Kenneth J. Meyers
Debtor's Counsel: Mary E. Lopinot, Esq.
Mathis Marifian and Richter Ltd
P.O. Box 307
23 Public Square, Suite 300
Belleville, IL 62222-0307
Tel: (618) 234-9800
Fax: (618) 234-9786
E-mail: mlopinot@mmrltd.com
Scheduled Assets: $1,046,879
Scheduled Debts: $984,244
A list of the Company's 5 largest unsecured creditors
filed together with the petition is available for free
at http://bankrupt.com/misc/ilsb10-31744.pdf
The petition was signed by Paul E. Reiniger and Marsha A.
Reiniger.
PHILADELPHIA NEWSPAPERS: Two Funds Want Reorganization Plan Halted
------------------------------------------------------------------
Bankruptcy Law360 reports that two pension plans have asked a
judge to put a halt to Philadelphia Newspaper LLC's reorganization
plan while the funds appeal its approval.
The Teamsters Pension Trust Fund of Philadelphia & Vicinity and
CWA/ITU Negotiated Pension Plan -- which represent newspaper
reporters and sales staff -- filed motions Wednesday to stay
confirmation, according to Law360.
About Philadelphia Newspapers
Philadelphia Newspapers -- http://www.philly.com/-- owns and
operates numerous print and online publications in the
Philadelphia market, including the Philadelphia Inquirer, the
Philadelphia Daily News, several community newspapers, the
region's number one local Web site, philly.com, and a number of
related online products. The Company's flagship publications are
the Inquirer, the third oldest newspaper in the country and the
winner of numerous Pulitzer Prizes and other journalistic
recognitions, and the Daily News.
Philadelphia Newspapers and its debtor-affiliates filed for
Chapter 11 bankruptcy protection on February 22, 2008 (Bankr. E.D.
Pa. Case No. 09-11204). Mark K. Thomas, Esq., and Paul V.
Possinger, Esq., at Proskauer Rose LLP in Chicago, Illinois; and
Lawrence G. McMichael, Esq., Christie Callahan Comerford, Esq.,
and Anne M. Aaronson, Esq., at Dilworth Paxson LLP, in
Philadelphia, Pennsylvania, serve as bankruptcy counsel. The
Debtors' financial advisor is Jefferies & Company Inc. The Garden
City Group, Inc., serves as claims and notice agent.
Ben Logan, Esq., at O'Melveny & Myers LLP in Los Angeles,
California; and Gary Schildhorn, Esq., at Eckert Seamans Cherin &
Mellott, LLC in Philadelphia, represent the Official Committee of
Unsecured Creditors. Fred S. Hodara, Esq., Abid Qureshi, Esq.,
and Alexis Freeman, Esq., at Akin Gump Strauss Hauer & Feld LLP in
New York, represent the Steering Group of Prepetition Secured
Lenders.
Philadelphia Newspapers listed assets and debts of $100 million to
$500 million in its bankruptcy petition.
PIONEER NATURAL: Fitch Affirms Issuer Default Rating at 'BB+'
-------------------------------------------------------------
Fitch Ratings has affirmed these ratings for Pioneer Natural
Resources':
-- Issuer Default Rating at 'BB+';
-- Senior Unsecured Notes and Credit Facility at 'BB+'.
The Rating Outlook is Stable. Approximately $2.7 billion of debt
is affected.
Pioneer's ratings continue to be supported by the company's long-
lived onshore reserve base; positive production outlook stemming
from volumetric production payment expirations and increased
capital spending levels; and the continued expectation of
positive/neutral free cash flows supported by a sizable hedging
program. Offsetting factors include the high levels of debt
relative to production levels; weaker historical average organic
reserve replacement rates; and the company's significant exposure
to natural gas prices (after existing hedge protections end).
Pioneer recently announced a $1.15 billion joint venture agreement
with Reliance Industries Limited to sell a 45% interest in the
company's Eagle Ford Shale play. The transaction will result in
$266 million of cash paid to Pioneer at closing and $879 million
of drilling carry. The drilling carry will fund 75% of Pioneer's
share of future drilling costs over a six-year period. As a
result of the announcement, Pioneer is expected to use the
proceeds to accelerate drilling activity in the Eagle Ford Shale
play and to reduce debt. Pioneer now expects to grow production
by an estimated 10% from fourth quarter 2009 to fourth quarter
2010 and sustain a 15% production growth rate between 2011 and
2013. Growing production combined with a significant hedging
program will provide the company with significant cash flow
visibility going forward. As a result, Pioneer should be able to
continue to live within operating cash flows and therefore not
require additional borrowings despite expectations of increased
capital expenditures going forward.
Credit metrics continue to improve as of March 31, 2010,
reflecting reduced debt levels, positive free cash flow generation
and improving levels of EBITDAX (earnings before interest, taxes,
depreciation, amortization and exploration expense) stemming from
higher commodity price realizations. Looking forward, Fitch
expects Pioneer to benefit from significant existing hedges,
increasing production levels and the potential for additional debt
reductions and VPP amortizations. For the latest 12 months ending
March 31, 2010, Pioneer's EBITDAX was $1.31 billion which resulted
in interest coverage of 7.0 times and leverage, as measured by
debt-to-EBITDAX, of 2.1x. At year-end 2009, debt/boe of proven
reserves was $3.27/boe ($.54/mcfe) and debt/boe of proven
developed reserves was $5.61/boe ($.93/mcfe). Pioneer generated a
positive $294 million of FCF during the LTM period.
Fitch continues to expect Pioneer to generate positive/neutral
free cash flows in 2010 and 2011 despite the increases to the
company's capital expenditure program. Improved operating cash
flows are being further supported by falling VPP obligations
beginning in January 2010, increased hedging activity and the
recovery of excess royalties paid by the company for deepwater
leases in the Gulf of Mexico. As a result, Pioneer is anticipated
to continue to direct cash flows to reduce remaining borrowings
under the company's credit facility and to increase capital
expenditures to begin growing production and reserves associated
with the company's oil and liquids rich assets. Rising debt
levels (given the current asset base and production profile) or to
fund significant share repurchases could be a catalyst for
negative rating action.
Pioneer maintains liquidity from cash and equivalents
($34.5 million at March 31, 2010); its $1.5 billion credit
facility ($1.3 billion of availability at March 31, 2010); and
operating cash flows of $818 million during the LTM period which
are supported by significant hedge positions. Additional cash
inflows from the recently announced and closed joint venture with
Reliance Industries will provide immediate cash inflows of
$266 million combined with $879 million of drilling carries.
Current maturities are minimal, with the only maturity facing the
company coming in 2012 with the expiration of the company's credit
facility (a $1.5 billion facility with $125 million of outstanding
borrowings and $104.2 million of undrawn letters of credit. In
addition, since Fitch includes 100% of VPP balances in the debt
calculations, debt levels will fall associated with VPP
amortizations going forward. This includes approximately
$90 million in 2010 and $45 million in 2011. Total VPP
obligations at March 31, 2010, were $177.2 million.
Additional liquidity is available to the company as a result of
Pioneer Southwest. The presence of the master limited partnership
benefits the parent company because of its ability to 'drop down'
or sell assets to the MLP and the existence of a $300 million
revolving credit facility at the MLP to finance these purchases.
Note that the MLP currently has $69 million of outstanding
borrowings on the facility. Additionally, Pioneer has the ability
to sell additional units in the MLP to the public to raise
additional capital without diluting Pioneer shareholders (Pioneer
continues to own approximately 61.9% of LP units while also
retaining the 0.1% GP units).
Liquidity remains strong at Pioneer, and the company remains in
compliance with all debt covenants. All of Pioneer's borrowings
have covenants, with the most restrictive covenants being
associated with the company's senior unsecured credit facility.
Pioneer amended its $1.5 billion senior unsecured credit facility
effective April 29, 2009, to provide the company additional
financial flexibility. The amendment resulted in a change to the
ratio of the net present value of the company's oil and gas
properties to total debt, from a minimum of 1.75x to 1.5x through
March 31, 2011. From March 31, 2011, through April 2012, the
covenant will revert back to 1.75x. In addition, Pioneer is able
to include in the calculation of the present value of its oil and
gas properties 75% of the market value of its ownership of LP
units of Pioneer Southwest Energy Partners L.P.
Pioneer is a large independent oil & gas exploration and
production company with operations in the U.S. (Permian Basin,
Mid-Continent, Rockies, Gulf Coast & Alaska) and Africa (Tunisa
and South Africa). At year-end 2009, the company had
approximately 899 MMBOE of proven reserves.
PPLUS TRUST: S&P Puts 'BB-' Ratings on CreditWatch Developing
-------------------------------------------------------------
Standard & Poor's Ratings Services placed its 'BB-' ratings on
PPLUS Trust Series LMG-4's $35 million class A and B trust
certificates on CreditWatch with developing implications.
S&P's ratings on the class A and B trust certificates are
dependent on S&P's rating on the underlying security, Liberty
Media Corp.'s 8.25% senior unsecured debentures due Feb. 1, 2030
('BB-/Watch Dev').
The CreditWatch placements follow S&P's June 25, 2010, placement
of the underlying security on CreditWatch with developing
implications. S&P may take subsequent rating actions on the class
A and B trust certificates due to changes in S&P's rating assigned
to the underlying security.
PRODUCTION COMPONENTS: Voluntary Chapter 11 Case Summary
--------------------------------------------------------
Debtor: Production Components, Inc.
P.O. Box 748
Clinton, TN 37717
Bankruptcy Case No.: 10-33070
Chapter 11 Petition Date: June 29, 2010
Court: United States Bankruptcy Court
Eastern District of Tennessee (Knoxville)
Judge: Richard Stair Jr.
Debtor's Counsel: Thomas Lynn Tarpy, Esq.
Hagood, Tarpy & Cox PLLC
Suite 2100, Riverview Tower
900 South Gay Street
Knoxville, TN 37902-1537
Tel: (865) 525-7313
E-mail: ltarpy@htandc.com
Scheduled Assets: $1,833,664
Scheduled Debts: $4,176,185
The Debtor did not file a list of its largest unsecured creditors
together with its petition.
The petition was signed by Ted Duke, president.
PROPEX INC: Total Petrochemicals Settles Trustee's $8.6 Mil. Suit
-----------------------------------------------------------------
Bankruptcy Law360 reports that Total Petrochemicals USA Inc. has
agreed to pay $150,000 to the trustee in charge of liquidating the
assets of Fabrics Estate Inc., formerly Propex Inc., in order to
settle an $8.6 million avoidance lawsuit.
Law360 says the trustee, Eugene I. Davis, filed a motion Thursday
in the U.S. Bankruptcy Court for the Eastern District of Tennessee
seeking approval of the settlement.
About Propex Inc.
Headquartered in Chattanooga, Tennessee, Propex Inc. --
http://www.propexinc.com/-- produces geosynthetic, concrete,
furnishing, and industrial fabrics and fiber. It also produces
primary and secondary carpet backing. Propex operates in North
America, Europe, and Brazil. In Europe, the company has
manufacturing facilities in Germany, Hungary and the United
Kingdom.
The Company and its debtor-affiliates filed for Chapter 11
protection on January 18, 2008 (Bankr. E.D. Tenn. Case No.
08-10249). The Debtors selected Edward L. Ripley, Esq., Henry J.
Kaim, Esq., and Mark W. Wege, Esq. at King & Spalding, in Houston,
Texas, to represent them. The Official Committee of Unsecured
Creditors tapped Ira S. Dizengoff, Esq., at Akin Gump Strauss
Hauer & Feld, LLP, in New York, to be its counsel.
Propex changed its name to Fabrics Estate following the sale of
substantially all of its assets to Xerxes Operating Company, LLC,
and Xerxes Foreign Holding Corp.
Bankruptcy Creditors' Service, Inc., publishes Propex Bankruptcy
News. The newsletter tracks the Chapter 11 proceedings
undertaken by Propex Inc. and its various affiliates.
(http://bankrupt.com/newsstand/or 215/945-7000)
PROTOSTAR LTD: Lenders Object to Lowenstein, Greenberg Fees
-----------------------------------------------------------
Bankruptcy Law360 reports that lenders for ProtoStar Ltd. and its
affiliates have objected to about $1.2 million in fees and
expenses requested by unsecured creditors' advisers, including
Greenberg Traurig LLP and Lowenstein Sandler PC, which are
handling legal claims against some of the financing firms.
Secured lenders including BlackRock Financial Management Inc.,
West Face Capital Inc., Farallon Partners LLC, and Octavian
Advisors LP and debtor-in-possession financing agent Credit Suisse
lodged fee objections Thursday, according to Law360.
About ProtoStar Ltd.
Hamilton, HM EX, Bermuda-based ProtoStar Ltd. is a satellite
operator formed in 2005 to acquire, modify, launch and operate
high-power geostationary communication satellites for direct-to-
home satellite television and broadband internet access across the
Asia-Pacific region.
The Company and its affiliates filed for Chapter 11 on July 29,
2009 (Bankr. D. Del. Lead Case No. 09-12659). The Debtor selected
Pachulski Stang Ziehl & Jones LLP as Delaware counsel; Law Firm of
Appleby as their Bermuda counsel; UBS Securities LLC as financial
advisor & investment banker and Kurtzman Carson Consultants LLC as
claims and noticing agent. The Debtors have tapped UBS Securities
LLC as investment banker and financial advisor.
Also on July 29, 2009, ProtoStar and its affiliates, including
ProtoStar Development Ltd., commenced a coordinated proceeding in
the Supreme Court of Bermuda. John C. McKenna of Finance & Risk
Services Ltd. as liquidator of the Bermuda Group.
In their Chapter 11 petition, the Debtors listed between
US$100 million and US$500 million each in assets and debts. As of
December 31, 2008, ProtoStar's consolidated financial statements,
which include non-debtor affiliates, showed total assets of
US$463,000,000 against debts of US$528,000,000.
QUARRY POND: Plan Confirmation Hearing Scheduled for July 7
-----------------------------------------------------------
The U.S. Bankruptcy Court for the Northern District of California
will consider on July 7, 2010, at 9:30 a.m. at Courtroom 22, the
confirmation of Quarry Pond, LLC's Plan of Reorganization.
The Hon. Dennis Montali conditionally approved the Debtor's
Disclosure Statement.
The Court set July 1 as the last day for returning of ballots
accepting or rejecting the Plan, and for filing and serving
written objections to the confirmation of the Plan or the
Disclosure Statement.
According to the Disclosure Statement, the Plan provides that the
Debtor will continue to operate the Quarry Ponds Town Center and
One Ripe Tomato business. The Debtor will use the rents received
from the tenants well as the net cash flow from the businesses it
operates to make payments to creditors pursuant to the Plan.
Small unsecured creditors, together with any general unsecured
creditor who chooses to reduce their claim to $5,000, will receive
a payment equal to 100% of the allowed amount of their claim in
quarterly installments of $3,192 beginning one year after the
effective date and continuing from quarter to quarter thereafter
for approximately three years, until their claims have been paid
in full.
As for general unsecured creditors, beginning September 1, 2011 ,
the Debtor will set aside all remaining net income after payment
of operating expenses and payments to creditors in Classes 1
through 4, which the Debtor estimates will be at least $833 to
$4,726 per month for a period of seven years. Beginning September
1, and continuing from quarter to quarter thereafter, the Debtor
will distribute the funds so accumulated, on a pro-rata basis, to
creditors in Class 5. The monthly payments will continue for a
period of seven years, until creditors in Class 5 have received
100% of their claims.
As to the unsecured claim of Walter Gebauer, upon the effective
date of the Plan, Mr. Gebauer's IRA Plan will receive a 10%
interest in Quarry Pond, LLC, as payment in full of his claim. It
will receive no dividends until all non-insider creditors have
been paid in full under the Plan.
A full-text copy of the Disclosure Statement is available for free
at http://bankrupt.com/misc/QuarryPond_DS.pdf
About Quarry Pond
Quarry Pond, LLC, -- dba Quarry Ponds Town Center and One Ripe
Tomato -- filed for Chapter 11 bankruptcy protection on
November 3, 2009 (Bankr. N.D. Calif. Case No. 09-33426). Ruth
Elin Auerbach, Esq., at Law Offices of Ruth Elin Auerbach assists
the Company in its restructuring efforts. The Company listed
$10,000,001 to $50,000,000 in assets and $10,000,001 to
$50,000,000 in liabilities.
RAISSI REAL ESTATE: Case Summary & 3 Largest Unsecured Creditors
----------------------------------------------------------------
Debtor: Raissi Real Estate Development, LLC
2490 Lafayette Street
Santa Clara, CA 95050
Bankruptcy Case No.: 10-56855
Chapter 11 Petition Date: June 30, 2010
Court: U.S. Bankruptcy Court
Northern District of California (San Jose)
Judge: Roger L. Efremsky
Debtor's Counsel: John Walshe Murray, Esq.
E-mail: jwmurray@murraylaw.com
Rachel Patience Ragni, Esq.
E-mail: rragni@murraylaw.com
Law Offices of Murray and Murray
19400 Stevens Creek Boulevard #200
Cupertino, CA 95014-2548
Tel: (650) 852-9000
Estimated Assets: $10,000,001 to $50,000,000
Estimated Debts: $10,000,001 to $50,000,000
A copy of the Debtor's list of 3 largest unsecured
creditors filed together with the petition is available for
free at http://bankrupt.com/misc/canb10-56855.pdf
The petition was signed by Sasan Raissi, sole member and manager.
RCLC INC: Ends Asset Sale Agreement With Hawthorne TTN
------------------------------------------------------
RCLC Inc. terminated the Asset Sale Agreement, dated as of May 15,
2009, as amended, by and among the Company, Ronson Aviation, Inc.,
and Hawthorne TTN Holdings, LLC, pursuant to which the Company and
RAI had agreed to sell to Hawthorne substantially all the assets
of RAI.
Hawthorne had been experiencing difficulties in finalizing the
financing necessary for it to consummate the transaction. On May
26, 2010, the Company delivered a time of the essence letter to
Hawthorne indicating the Company's readiness to close and
providing Hawthorne until June 9, 2010 to finalize its financing
and close the transaction. Hawthorne failed to appear for closing
on June 9, 2010.
As a consequence, by letter dated June 23, 2010, the Company
exercised its right to terminate the Aviation Sale Agreement by
notifying Hawthorne that it was in default of the Aviation Sale
Agreement and that the Company was exercising its right to
terminate the Aviation Sale Agreement and to pursue all other
remedies available to it under applicable law. No termination
penalties will be incurred by the Company under the Aviation Sale
Agreement as a result of its termination of the Aviation Sale
Agreement. As previously disclosed, the Company is investigating
its options, including contacting other potential purchasers.
About RCLC Inc.
RCLC, Inc., formerly known as Ronson Corporation, in Woodbridge,
New Jersey, historically, has been engaged principally in these
businesses -- Consumer Products; and Aviation-Fixed Wing and
Helicopter Services.
* * *
According to the Troubled Company Reporter on June 18, 2010,
RCLC Inc. and its wholly-owned subsidiaries, RCPC Liquidating
Corp. Ronson Aviation, Inc., and RCC Inc., further extended the
forbearance agreement with their principal lender, Wells Fargo
Bank, National Association, under which Wells Fargo agreed not to
assert existing events of default under the Borrowers' credit
facilities with Wells Fargo through July 16, 2010, or such earlier
date determined under the Forbearance Agreement, to provide the
Borrowers with additional time to consummate the sale of RAI's
assets to Hawthorne TTN Holdings, LLC pursuant to the previously
disclosed Asset Purchase Agreement dated as of May 15, 2009, as
amended, among the Company, RAI and Hawthorne, or, alternatively,
enter into an asset purchase agreement with another qualified
purchaser.
REAL MEX: Gets Holders' Consent to Amend Indenture of Senior Notes
------------------------------------------------------------------
Real Mex Restaurants Inc. has received the requisite consents from
holders of its 14% Senior Secured Notes due 2013 to amend the
indenture governing the Notes. The consent solicitation expired
at 12:00 p.m., New York City time, on June 24, 2010.
Real Mex has been advised by Wells Fargo Bank, National
Association, the information and tabulation agent for the consent
solicitation, that, as of the Expiration Time, consents were
validly delivered in respect of $95,377,000 in aggregate principal
amount of the Notes, which constituted a majority in aggregate
principal amount of Notes owned by non-affiliated holders.
As a result, Real Mex, the Guarantors and Wells Fargo Bank,
National Association, as trustee under the Indenture, have entered
into a supplemental indenture, which amended the Indenture to
permit affiliates of Sun Capital Partners, Inc. to acquire a
majority of the stock of Holdco without requiring Real Mex to make
a change of control offer to repurchase the Notes that would
otherwise have been required under the Indenture, and to add an
additional covenant, pursuant to which Real Mex has agreed that,
in any optional redemption of Notes that is effected between July
1, 2011 and June 30, 2012, Real Mex will pay to each holder of
redeemed Notes an additional premium equal to 2% of the aggregate
principal amount of the Notes so redeemed. The Supplemental
Indenture is binding on all holders of the Notes, including non-
consenting holders.
Immediately after the Supplemental Indenture was entered into, Sun
Cantinas, LLC, an affiliate of Sun Capital Partners, Inc. that is
an equityholder of Holdco, consummated the acquisition of 43,338
shares of common stock of Holdco from Cocina Funding Corp.,
L.L.C., an existing equityholder of Holdco that is managed by
Farallon Capital Management, L.L.C. As a result of the Share
Purchase, Sun Cantinas and SCSF Cantinas, LLC, another affiliate
of Sun Capital, together own approximately 70% of the outstanding
common stock of Holdco, and together are entitled, under the
cumulative voting provisions of Holdco's Certificate of
Incorporation, to elect not fewer than five members of the seven-
member board of directors of Holdco and Real Mex, giving them the
ability indirectly to control Real Mex through such shareholdings
and board memberships. Following the Share Purchase, Cocina holds
approximately 13% of the outstanding common stock of Holdco, and
no longer has a representative on the board of directors of either
Holdco or Real Mex.
Simultaneously with the consummation of the Share Purchase, Sun
Cantinas also consummated the purchase from Cocina of a portion of
the term loan indebtedness of Holdco outstanding under the Credit
Agreement, dated as of July 7, 2009, by and among Holdco, the
lenders party thereto, and Wilmington Trust FSB as administrative
agent, as a result of which Sun Cantinas holds approximately 71%
of the outstanding Holdco Term Debt and Cocina holds approximately
29% of the outstanding Holdco Term Debt. At the same time, the
Holdco Term Loan Agreement was amended to provide that Cocina will
remain a "Requisite Lender" thereunder, whose consent would be
required for any amendment or waiver under the Holdco Term Loan
Agreement and who could declare the indebtedness outstanding under
the Holdco Term Loan Agreement to be due and payable upon an Event
of Default, in each case until such time as Cocina no longer holds
at least 15% of the Holdco Term Debt.
Real Mex will promptly pay a consent payment to each non-
affiliated holder of Notes that validly delivered its consent
prior to the Expiration Time, in the amount of $5.00 per $1,000 in
principal amount of Notes held by each such consenting holder. Sun
Cantinas has agreed to reimburse Real Mex for all consent fees
paid by Real Mex in the Consent Solicitation. In addition, if
Real Mex becomes required to pay an additional premium to the
holders of Notes pursuant to the terms of the Additional Premium
Amendment, then Sun Cantinas has agreed to reimburse Real Mex for
the aggregate amount of that additional premium.
Jefferies & Company, Inc. acted as the solicitation agent in
connection with the consent solicitation. Wells Fargo Bank,
National Association served as the information and tabulation
agent for the consent solicitation.
A full-text copy of the consent and first amendment to credit
agreement is available for free at:
http://ResearchArchives.com/t/s?65c5
A full-text copy of the first supplement indenture is available
for fee at:
http://ResearchArchives.com/t/s?65c6
Based in Cypress, California, Real Mex Restaurants, Inc., owns and
operates restaurants, primarily through its major subsidiaries El
Torito Restaurants, Inc., Chevys Restaurants, LLC, and Acapulco
Restaurants, Inc. The Company operated 183 restaurants as of
March 28, 2010, of which 152 were located in California and the
remainder were located in 12 other states, primarily under the
trade names El Torito Restaurant(R), Chevys Fresh Mex(R) and
Acapulco Mexican Restaurant Y Cantina(R). In addition, the
Company franchised or licensed 34 restaurants in 12 states and two
foreign countries as of March 28, 2010. The Company's other major
subsidiary, Real Mex Foods, Inc., provides internal production,
purchasing and distribution services for the restaurant operations
and also provides distribution services and manufactures specialty
products for sale to outside customers.
At March 28, 2010, the Company had total assets of $249,430,000
against total liabilities of $252,600,000, resulting in
stockholders' deficit of $3,170,000. The March 28, 2010 balance
sheet showed strained liquidity: The Company had total current
assets of $35,668,000 against total current liabilities of
$67,425,000.
REALOGY CORP: Bank Debt Trades at 16% Off in Secondary Market
-------------------------------------------------------------
Participations in a syndicated loan under which Realogy Corp. is a
borrower traded in the secondary market at 83.60 cents-on-the-
dollar during the week ended Friday, July 2, 2010, according to
data compiled by Loan Pricing Corp. and reported in The Wall
Street Journal. This represents a drop of 2.70 percentage points
from the previous week, The Journal relates. The Company pays 300
basis points above LIBOR to borrow under the facility. The bank
loan matures on Sept. 30, 2013, and carries Moody's Caa1 rating
and Standard & Poor's CCC-rating. The debt is one of the biggest
gainers and losers among 191 widely quoted syndicated loans with
five or more bids in secondary trading for the week ended Friday.
Realogy Corp. -- http://www.realogy.com/-- a global provider of
real estate and relocation services with a diversified business
model that includes real estate franchising, brokerage, relocation
and title services. Realogy's world-renowned brands and business
units include Better Homes and Gardens Real Estate, CENTURY 21,
Coldwell Banker, Coldwell Banker Commercial, The Corcoran Group,
ERA, Sotheby's International Realty, NRT LLC, Cartus and Title
Resource Group. Collectively, Realogy's franchise systems have
approximately 15,000 offices and 270,000 sales associates doing
business in 92 countries around the world.
Headquartered in Parsippany, N.J., Realogy is owned by affiliates
of Apollo Management, L.P., a leading private equity and capital
markets investor. Realogy fully supports the principles of the
Fair Housing Act.
RENEW ENERGY: Judge Approves Plan for Distributing Sale Proceeds
----------------------------------------------------------------
A federal judge has approved a plan proposed by Renew Energy LLC's
creditors for distributing the proceeds of the company's
$72 million sale to Valero Renewable Fuels Co. LLC last year,
Bankruptcy Law360 reports
Judge Robert D. Martin of the U.S. Bankruptcy Court for the
Western District of Wisconsin on Thursday confirmed the Chapter 11
plan, according to Law360.
Headquartered in Jefferson, Wisconsin, Renew Energy LLC --
http://www.renewenergyllc.com/-- operates an ethanol plant
facility. The Company filed for Chapter 11 on January 30, 2009
(Bankr. W.D. Wis. Case No. 09-10491). Christopher Combest, Esq.,
at Quarles & Brady LLP, represents the Debtor in its restructuring
efforts. William T. Neary, the United States Trustee for Region
11, appointed five creditors to serve on an Official Committee of
Unsecured Creditors. The Debtor disclosed $188,953,970 in total
assets and $194,410,573 in total debts.
RICHARD ABRUSCATO: Voluntary Chapter 11 Case Summary
----------------------------------------------------
Debtor: Richard E. Abruscato, Jr.
16817 Colton Court
Woodbine, MD 21797
Bankruptcy Case No.: 10-24896
Chapter 11 Petition Date: June 30, 2010
Court: United States Bankruptcy Court
District of Maryland (Baltimore)
Judge: Robert A. Gordon
Debtor's Counsel: Daniel M. Press, Esq.
Chung & Press, P.C.
6718 Whittier Ave., Suite 200
McLean, VA 22101
Tel: (703) 734-3800
Fax: (703) 734-0590
E-mail: dpress@chung-press.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
The Debtor did not file a list of its largest unsecured creditors
together with its petition.
The petition was signed by Richard E Abruscato, Jr.
RICHARD FUSCONE: Court Denies Motion to Incur DIP Financing
-----------------------------------------------------------
The Hon. Robert D. Drain of the U.S. Bankruptcy Court for the
Southern District of New York denied Richard Fuscone's motion to
obtain postpetition financing and grant security interest, and
accord superpriority administrative status to D.C. Basile
Management, LLC.
Based on the objection of Patriot National Bank, the Court ordered
the Debtor to show cause, including the exhibits thereto.
Armonk, New York-based Richard Fuscone filed for Chapter 11
bankruptcy protection on April 6, 2010 (Bankr. S.D.N.Y. Case No.
10-22675). Lawrence F. Morrison, Esq., at Meister Seelig & Fein,
LLP, assists the Company in its restructuring effort. The Company
estimated its assets and debts at $10,000,001 to $50,000,000.
RITE AID: Bank Debt Trades at 14% Off in Secondary Market
---------------------------------------------------------
Participations in a syndicated loan under which Rite Aid
Corporation is a borrower traded in the secondary market at 85.95
cents-on-the-dollar during the week ended Friday, July 2, 2010,
according to data compiled by Loan Pricing Corp. and reported in
The Wall Street Journal. This represents a drop of 1.02
percentage points from the previous week, The Journal relates.
The Company pays 175 basis points above LIBOR to borrow under the
facility. The bank loan matures on May 25, 2014, and carries
Moody's B3 rating and Standard & Poor's B+ rating. The debt is
one of the biggest gainers and losers among 191 widely quoted
syndicated loans with five or more bids in secondary trading for
the week ended Friday.
Headquartered in Camp Hill, Pennsylvania, Rite Aid Corporation
(NYSE: RAD) -- http://www.riteaid.com/-- is the largest drugstore
chain on the East Coast and the third largest drugstore chain in
the U.S. The Company operates more than 4,900 stores in 31 states
and the District of Columbia.
Rite Aid Corporation reported financial results for the first
quarter ended May 29, 2010, showing a net loss of $73.7 million
compared with a net loss of $98.4 million for last year's first
quarter. Adjusted EBITDA was $249.8 million or 3.9 percent of
revenues for the first quarter compared to $249.2 million or
3.8 percent of revenues for the like period last year.
The company's balance sheet for May 29, 2010, showed $8.0 billion
total assets and $9.7 billion total liabilities, for a
$1.7 billion total stockholders' deficit.
RJ YORK: Premier Bank Offers $5 Million for Clayton Property
------------------------------------------------------------
Rick Desloge at Business Journal St. Louis reports that Premier
Bank made a $5 million offer, at a foreclosure sale, for the
Clayton property where RJ York SSG planned to build a Westin
Hotel. The was the primary lender on the project.
According to the report, the bank's $5 million bid was
$3.2 million below the $8.2 million debt on the property as of
March 30. RJ York SSG remains liable for the shortfall, said Jim
Gardner, a vice president with Premier who submitted the
$5 million bid.
St. Louis, Missouri-based RJ York SSG, LLC, is a property
developer. The Company filed for Chapter 11 bankruptcy protection
on February 2, 2010 (Bankr. E.D. Mo. Case No. 10-40876). David L.
Going, Esq., and Susan K. Ehlers, Esq., at Armstrong, Teasdale et
al., assist the Company in its restructuring effort. The Company
listed $10,000,001 to $50,000,000 in assets and $10,000,001 to
$50,000,000 in liabilities.
ROBERT BUECHEL: Case Summary & 20 Largest Unsecured Creditors
-------------------------------------------------------------
Joint Debtors: Robert W. Buechel
Stacie Buechel
fka Stacie Fagnani
1627 Missouri Street
San Diego, CA 92109
Bankruptcy Case No.: 10-11371
Chapter 11 Petition Date: June 29, 2010
Court: U.S. Bankruptcy Court
Southern District of California (San Diego)
Debtor's Counsel: Martin A. Eliopulos, Esq.
Higgs, Fletcher & Mack LLP
401 West A Street, Suite 2600
San Diego, CA 92101
Tel: (619) 236-1551
Fax: (619) 696-1410
E-mail: elio@higgslaw.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
A copy of the Debtors' list of 20 largest unsecured
creditors filed together with the petition is available for
free at http://bankrupt.com/misc/casb10-11371.pdf
The petition was signed by the Joint Debtors.
SANFORD JAY HOROWITZ: To Fully Pay Claims from Asset Sales
----------------------------------------------------------
Sanford Jay Horowitz filed with the U.S. Bankruptcy Court for the
Central District of California a Liquidating Plan and an
explanatory Disclosure Statement.
The Debtors will begin soliciting votes on the Plan following
approval of the adequacy of the information in the Disclosure
Statement.
According to the Disclosure Statement, the Debtor is proposing a
liquidating Plan whereby claims will be paid from the proceeds
from various sale of various assets.
The Plan proposes to pay his creditors in full on the effective
date, estimated to be on February 15, 2011. The Debtor will act
as the disbursing agent for the purpose of making all
distributions provided for under the Plan, without separate
compensation.
A full-text copy of the Disclosure Statement is available for free
at http://bankrupt.com/misc/SanfordJay_DS.pdf
About Sanford Jay Horowitz
Based in Calabasa, California, Sanford Jay Horowitz aka Sandy
Horowitz filed for Chapter 11 protection on Nov. 3, 2009 (Bankr.
C.D. Calif. Case No. 09-24651). Peter M. Lively, Esq., at The
Law Offices of Peter M Lively, represents the Debtor. In its
petition, the debtor listed assets of between $10 million and
$50 million, and debts of between $1 million and $10 million.
SK HAND: Case Summary & 20 Largest Unsecured Creditors
------------------------------------------------------
Debtor: SK Hand Tool Corporation
3535 W. 47th Street
Chicago, IL 60632
Bankruptcy Case No.: 10-28882
Chapter 11 Petition Date: June 29, 2010
Court: United States Bankruptcy Court
Northern District of Illinois (Chicago)
Judge: Eugene R. Wedoff
Debtor's Counsel: Colleen E. McManus, Esq.
E-mail: cmcmanus@muchshelist.com
Kurt M. Carlson, Esq.
E-mail: kcarlson@muchshelist.com
Much Shelist
191 N. Wacker Drive, Suite 1800
Chicago, IL 60606
Tel: (312) 521-2000
Fax: (312) 521-2200
Estimated Assets: $10,000,001 to $50,000,000
Estimated Debts: $10,000,001 to $50,000,000
The petition was signed by Cliff Rusnak, executive vice president.
Debtor's List of 20 Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
------ --------------- ------------
Blue Cross Blue Insurance $413,889
Shield of Illinois
P.O. Box 1186
Chicago, IL 60690
West 55th Street lawsuit Chicago, $378,163
Investors, LLC Illinois
Niscolson Porter &
List, Inc.
1300 W. Higgins Road
Park Ridge, IL 60068
Wright Tool Co. Trade $187,421
P.O. Box 951798
Cleveland, OH 44193
US Dept. of Lawsuit $180,000
Labor-Solicitor Office OSHRC Docket
Nos. 10-0152 &
10-1053
Facom - Morangis $165,354
Cook County Treasurer Real Estate $164,407
Taxes
SPX Servoce Solutions District Court $158,839
of Michigan - 10
cv 11218
Bost Garnache Industries Trade $147,168
Central States SE & SW lawsuit-09 cv 1387 $110,325
Pension Fund
Ningbo United Group, Ltd. $97,524
A.J. Manufacturing Trade Claim $93,790
Co., Inc.
S&L Marketing Services $79,419
ATD Tools, Inc. $75,995
Kapon Enterprise Ltd. $74,339
Kaiser Cray, Ltd. Services $63,805
Waterloo Industries, Trade $63,257
Inc.
Consolidated Sales Trade $62,431
Group, LLC
McCourt Marketing Services $62,119
Group
VO Investment, LLC $56,149
Kingsyear Co. Ltd. $46,977
SOFTLAYER TECHNOLOGIES: Moody's Assigns 'B2' Corp. Family Rating
----------------------------------------------------------------
Moody's Investors Service assigned a B2 corporate family rating
and a B3 probability of default rating to SoftLayer Technologies,
Inc. The rating agency also assigned a B2 (LGD3- 31%) rating to
the company's new $230 million senior secured credit facility,
consisting of a $20 million revolver, a $20 million delayed draw
term loan, and a $190 million term loan B. Borrowings will be
used to refinance existing debt and help fund a $483 million
leveraged buyout of the company by GI Partners, who will assume a
65% stake in the company, with the balance of equity held by
management. The rating outlook is stable.
Moody's has taken these rating actions:
Assignments:
Issuer: SoftLayer Technologies, Inc.
* Corporate Family Rating, Assigned B2
* Probability of Default Rating, Assigned B3
* $20 million Secured Revolving Credit Facility, Assigned B2 (LGD3
-31%)
* $20 million Senior Secured Delayed Draw Term Loan, Assigned B2
(LGD3 -31%)
* $190 million Senior Secured Delayed Draw Term Loan, Assigned B2
(LGD3 -31%)
SoftLayer's B2 Corporate Family Rating reflects the challenges of
solidifying a defensible competitive position in the fragmented
hosting segment of the data center services industry, the
company's high pro-forma financial leverage at closing of roughly
4.3x Debt/EBITDA (Moody's adjusted, primarily for capitalized
operating leases), and its small scale and short operating
history. Additionally, SoftLayer is expected to generate negative
free cash flow and may subsequently have a constrained liquidity
profile over the next two years as the company adds server
capacity in new data center facilities. Moody's believes that
deleveraging below 4.0x by the end of 2011 may prove challenging
as the company will likely utilize its committed external debt
financing to support the capital requirements of its business
plan. The rating is supported, however, by SoftLayer's strong and
consistent growth from providing hosting and managed services to
Internet -- centric small- and medium-sized businesses since
inception, and high EBITDA margins that can translate into
positive free cash flow once the company emerges from its growth
phase. Moody's remains concerned, though, about the longer-term
sustainability of that cash flow as the potential commoditization
of the various data center services may lead to price competition.
In Moody's view as competition evolves, SoftLayer's lack of
customer contracts, currently an anomaly in the data center
services industry, also constrains the rating.
The stable rating outlook reflects Moody's expectation that
SoftLayer will continue to capitalize on strong demand for server
capacity by Internet--centric SMBs over the next couple of years.
This is the first time that Moody's has rated the debt of
SoftLayer.
Moody's expects SoftLayer to have adequate liquidity over the next
twelve months, as proforma for the proposed credit facilities the
company will have full access to its $20 million revolver and $20
million delayed draw term loan, to backstop its projected free
cash flow deficits that stem from plans to add server capacity in
new data centers. However, SoftLayer's liquidity may eventually
face pressure due to the company's need to continue to invest in
new and replacement server capacity. At closing, Moody's expects
the company's balance sheet cash to be roughly $5 million.
The ratings for the debt instruments reflect both the overall
probability of default for SoftLayer, to which Moody's has
assigned a B3 PDR, and a below-average mean family loss given
default assessment of 35% (or an above-average mean family
recovery estimate of 65%), in line with Moody's LGD Methodology
and typical treatment for an all-first-lien senior secured debt
capital structure. The credit facilities will be secured by a
first priority interest in and lien on substantially all
SoftLayer's assets. The facilities are rated B2 (LGD3-31%), in
line with the CFR, as the senior secured facilities comprise the
bulk of the capital structure.
SoftLayer Technologies, Inc. is a US-based provider of dedicated
hosting and managed data center services. The company's
headquarters are located in Plano, TX.
SOUTHEAST TELEPHONE: Lightyear Network Solutions to Acquire Firm
----------------------------------------------------------------
Lightyear Network Solutions, Inc., as well as residential
consumers throughout North America, disclosed an agreement to
acquire the business assets of SouthEast Telephone, Inc., a
Kentucky-based telecommunications company.
On June 30, 2010, Lightyear Network Solutions, Inc., and its
wholly-owned subsidiary, SE Acquisitions, LLC, a Kentucky limited
liability company, entered into an Asset Purchase Agreement with
SouthEast Telephone, Inc., a Kentucky corporation. Seller had
previously filed a voluntary petition for relief under chapter 11
of the Bankruptcy Code in the United States Bankruptcy Court for
the Eastern District of Kentucky, Pikeville Division. Seller
provides voice and data telecommunications products and services,
including local and long distance phone service, DSL and paging,
to primarily residential customers. Seller's 2009 revenue was
approximately $37.5 million. Seller currently has approximately
150 employees and approximately 33,000 customers.
Pursuant to the Agreement, SE Acquisitions has agreed to purchase
substantially all of the real property, intellectual property,
tangible assets, and selected vendor contracts used in the conduct
of Seller's business, and to assume certain post-closing
liabilities related to the purchased assets. Seller will retain
certain liabilities related to its business. SE Acquisitions has
the right under the Agreement to designate additional assets or
liabilities of Seller to be included in the Agreement. In
consideration of the purchased assets, SE Acquisitions will pay:
(i) up to $560,000 in cash to Seller for Seller's administrative
and priority expenses; (ii) $4,000 in cash for each of Seller's
employees who are not offered employment with the Company; and,
(iii) an aggregate of 200,000 shares of Company common stock, par
value $0.001 per share, to Seller's equity holders. SE
Acquisitions will also assume approximately $3,765,000 of Seller's
secured debt and expects to provide a minimum of $2,000,000 in
investment capital, post closing, to fund working capital needs
and network expansion.
The Agreement contains customary representations and warranties of
the parties. The asset purchase transaction is expected to close
on or about October 1, 2010, subject to fulfillment or waiver of
certain conditions to closing, including financing, regulatory
approvals, and approval by and an order of the Bankruptcy Court
under sections 363 and 365 of the Bankruptcy Code. This summary
is subject in its entirety to the terms and conditions of the
Agreement, a copy of which is attached as Exhibit 2.1 to the
Company's Current Report on Form 8-K dated July 1, 2010.
About Lightyear Network
Through its wholly owned subsidiary, Lightyear Network Solutions,
LLC, Lightyear provides telecommunication services to large,
medium and small businesses and to residential consumers
throughout North America utilizing its extensive network of
independent agents and representatives. J. Sherman Henderson III,
Lightyear's Chief Executive Officer, has nearly 25 years
experience in the telecommunications industry. Henderson was
named one of the Top 25 Most Influential People in
Telecommunications and was elected for six consecutive terms as
Chairman of COMPTEL, the leading industry association representing
more than 250 service providers. Lightyear's product and service
offerings include: local PRI and digital T1, enhanced internet
services, frame relay, MPLS, Point-to-Point, Voice over Internet
Protocol (VoIP), local and long distance, calling cards, and
conferencing. Lightyear has also begun offering wireless services
to customers in the U.S. through wholesale contracts with multiple
wireless voice and data service providers. Lightyear built its
own VoIP network in 2004 to enhance its product offerings to its
customers and has partnered with some of the most prominent names
in telecom including: Sprint, Verizon, AT&T, Qwest, Level 3,
PAETEC, CenturyLink, Intelliverse, Globys, BroadSoft, Cisco and
Adtran.
SPECIALTY PRODUCTS: Committee of Asbestos Claimants Formed
----------------------------------------------------------
Roberta A. DeAngelis, the U.S. Trustee for Region 3, appointed 11
members to the Committee of Asbestos Personal Injury Claimants in
the Chapter 11 case of Specialty Products Holdings Corp., et al.
As reported in the Troubled Company Reporter on June 16, 2010,
Bill Rochelle at Bloomberg News reported that Specialty Products
and Bondex International Inc. have an official creditors'
committee composed of 11 asbestos claimants. Each is represented
by a different law firm.
The Creditors Committee members are:
1. Myron Butler
c/o The Ferraro Law Firm, P.A.
4000 Ponce de Leon Blvd., Suite 700
Miami, FL 33146
Tel: (305) 375-0111
Fax: (305) 379-6222
2. Deborah Papaneri as representative for the
Estate of Charles Papaneri
c/o Paul, Reicht & Myers, P.C.
Attn: Robert B. Paul
1608 Walnut St., Suite 500
Philadelphia, PA 19103
Tel: (215) 735-9200
Fax: (215) 735-3888
3. James L. Mongolluzzo
c/o Goldberg, Persky & White, P.C.
Attn: Mark C. Meyer
1030 Fifth Ave.
Pittsburgh, PA 15219
Tel: (412) 471-3980
Fax: (412) 471-8308
4. Roy Leggett
c/o Simon, Eddins & Greenstone, LLP
Attn: Jeffrey B. Simon
3232 McKinney Ave., Suite 610
Dallas, TX 75204
Tel: (214) 276-7680
Fax: (214) 276-7699
5. Maria Santana
c/o The Ruckdeschel Law Firm, LLC
Attn: Johnathan Ruckdeschel
5126 Dorsey Hall Dr., Suite 201
Ellicott City, MD 20142
Tel: (410) 884-7825
Fax: (443) 583-0430
6. Antonietta DiMeglio
c/o Early & Strauss, LLC
Attn: Ethan Early
360 Lexington Ave., 20th Floor
New York, NY 10017
Tel: (212) 986-2233
Fax: (212) 986-2255
7. Lloyd H. Lohr
c/o Kelly & Ferraro, LLP
Attn: Thomas M. Wilson
2200 Key Tower
127 Public Square
Cleveland, OH 44114
Tel: (216) 575-0777
Fax: (216) 575-0799
8. David A. Kalil
c/o Waters & Kraus, LLP
3219 McKinney Ave.
Dallas, TX 75204
Tel: (214) 357-6244
Fax: (214) 357-7252
9. Victor Dillbeck
c/o Gori Julian & Associates, P.C.
Attn: John Barry Julian
156 N. Main St.
Edwardsville, IL 62025
Tel: (618) 659-9833
Fax: (618) 659-9834
10. Charles A. Wilson
c/o Simmons Browder, et al.
Attn: Robert W. Phillips
707 Berkshire Blvd.
East Alton, IL 62024
Tel: (618) 259-2222
Fax: (618) 259-2251
11. Zdenek Machalka, c/o Cooney & Conway
Attn: John D. Cooney
120 N. LaSalle, No. 3000
Chicago, IL 60602
Tel: (312) 236-6166
Fax: (312) 236-3029
Official creditors' committees have the right to employ legal and
accounting professionals and financial advisors, at the Debtor's
expense. They may investigate the Debtor's business and financial
affairs. Importantly, official committees serve as fiduciaries to
the general population of creditors they represent. Those
committees will also attempt to negotiate the terms of a
consensual Chapter 11 plan -- almost always subject to the terms
of strict confidentiality agreements with the Debtors and other
core parties-in-interest. If negotiations break down, the
Committee may ask the Bankruptcy Court to replace management with
an independent trustee. If the Committee concludes reorganization
of the Debtor is impossible, the Committee will urge the
Bankruptcy Court to convert the Chapter 11 cases to a liquidation
proceeding.
About Specialty Products
Cleveland, Ohio-based Specialty Products Holdings Corp., aka RPM,
Inc., is a wholly owned subsidiary of RPM International Inc. The
Company is the holding company parent of Bondex International,
Inc., and the direct or indirect parent of certain additional
domestic and foreign subsidiaries. The Company claims to be a
leading manufacturer, distributor and seller of various specialty
chemical product lines, including exterior insulating finishing
systems, powder coatings, fluorescent colorants and pigments,
cleaning and protection products, fuel additives, wood treatments
and coatings and sealants, in both the industrial and consumer
markets.
The Company filed for Chapter 11 bankruptcy protection on May 31,
2010 (Bankr. D. Del. Case No. 10-11780). Gregory M. Gordon, Esq.,
Dan B. Prieto, Esq., and Robert J. Jud, Esq., at Jones Day, serve
as bankruptcy counsel. Daniel J. DeFranceschi, Esq., and Zachary
I. Shapiro, Esq., at Richards Layton & Finger, serve as
co-counsel. Logan and Company is the Company's claims and notice
agent.
The Company estimated its assets and debts at $100,000,001 to
$500,000,000.
The Company's affiliate, Bondex International, Inc., filed a
separate Chapter 11 petition on May 31, 2010 (Case No. 10-11779),
estimating its assets and debts at $100,000,001 to $500,000,000.
SPECIALTY PRODUCTS: Has Until July 15 to File Schedules
-------------------------------------------------------
The Hon. Judith K. Fitzgerald of the U.S. Bankruptcy Court for the
District of Delaware extended until July 15, 2010, Specialty
Products Holdings Corp., et al.'s time to file their schedules of
assets and liabilities and statement of financial affairs.
Cleveland, Ohio-based Specialty Products Holdings Corp., aka RPM,
Inc., is a wholly owned subsidiary of RPM International Inc. The
Company is the holding company parent of Bondex International,
Inc., and the direct or indirect parent of certain additional
domestic and foreign subsidiaries. The Company claims to be a
leading manufacturer, distributor and seller of various specialty
chemical product lines, including exterior insulating finishing
systems, powder coatings, fluorescent colorants and pigments,
cleaning and protection products, fuel additives, wood treatments
and coatings and sealants, in both the industrial and consumer
markets.
The Company filed for Chapter 11 bankruptcy protection on May 31,
2010 (Bankr. D. Del. Case No. 10-11780). Gregory M. Gordon, Esq.,
Dan B. Prieto, Esq., and Robert J. Jud, Esq., at Jones Day, serve
as bankruptcy counsel. Daniel J. DeFranceschi, Esq., and Zachary
I. Shapiro, Esq., at Richards Layton & Finger, serve as
co-counsel. Logan and Company is the Company's claims and notice
agent.
The Company estimated its assets and debts at $100,000,001 to
$500,000,000.
The Company's affiliate, Bondex International, Inc., filed a
separate Chapter 11 petition on May 31, 2010 (Case No. 10-11779),
estimating its assets and debts at $100,000,001 to $500,000,000.
SPRINGBOK SERVICES: Stipulation on MetaBank Pact Rejection OK'd
---------------------------------------------------------------
Springbok Services, Inc., has asked the U.S. Bankruptcy Court for
the District of Colorado to approve its amended stipulation
providing the Debtor's rejection nunc pro tunc of certain executor
contracts. According to the Debtor, the relief requested is
needed on an expedited basis to ensure the orderly transition of
services from the Debtor to MetaBank, dba Meta Payment Systems.
The Debtor and MetaBank are parties to these executory contracts
relating to the processing, servicing and marketing by the Debtor
on behalf of MetaBank of prepaid magnetic stripe-based stored
value cards:
a. Processor Servicing Agreement dated as of June 12, 2007,
which establishes the terms under which the Debtor is to
provide card-processing services for cards issued by
MetaBank; and
b. Card Program Management Agreement dated as of July 12, 2007,
which provides for the development, marketing, support and
implementation of Card programs by the Debtor on behalf of
MetaBank.
Pursuant to the CPMA, all monies loaded or deposited onto Cards
are to be collected by the Debtor and forwarded to a funding
account owned and controlled by MetaBank upon card activation. Up
to a few days before the Petition Date, all Cardholder Funds
wasn't forwarded to the Funding Account I accordance with the
CPMA.
Pursuant to the PSA the Debtor is required to provide MetaBank
standard processing reports regarding the activation of cards and
Card balances on a daily basis.
On June 15, 2010, MetaBank sent the Debtor notice of termination
of the agreements, and on June 16, 2010, MetaBank further
instructed the Debtor to cease any further funding of cards not
yet activated. Prior to the Petition Date and after receipt of
the notice terminating the agreements, the Debtor discontinued the
issuance of the Cardholder Service Reports.
To honor its obligations to its customers and avoid potential harm
thereto, MetaBank wants to (a) cancel cards processed by the
Debtor on behalf of MetaBank, regardless of whether they were
previously activated, and (b) issue replacement cards, terms and
conditions, and (c) send a letter describing the cancellation of
cardholders' current cards.
The Bancorp Bank and the U.S. Trustee had voiced objections at the
June 28, 2010 hearing of the stipulation providing for the
rejection of the contracts. The objections were resolved and
incorporated into the stipulation.
A copy of the previous stipulation between the Debtor and MetaBank
is available for free at:
http://bankrupt.com/misc/SPRINGBOK_stipulation.pdf
A copy of the stipulation resolving the objections to the Debtor's
motion providing for the rejection of executor contracts is
available for free at:
http://bankrupt.com/misc/SPRINGBOK_stipulation2.pdf
Englewood, Colorado-based Springbok Services, Inc., fka The Best
Present Company, Inc.; and fdba Springbok Card Processing
Services, fka Springbok Card Processing Services, Inc., filed for
Chapter 11 bankruptcy protection on June 18, 2010 (Bankr. D. Colo.
Case No. 10-25285). Duncan E. Barber, Esq., who has an office in
Denver, Colorado, assists the Company in its restructuring effort.
The Company estimated its assets and debts at $10,000,001 to
$50,000,000.
SUGARTREE PROPERTIES: Case Summary & 10 Largest Unsec Creditors
---------------------------------------------------------------
Debtor: Sugartree Properties, Inc.
P.O. Box 30125
Raleigh, NC 27622
Bankruptcy Case No.: 10-05160
Chapter 11 Petition Date: June 29, 2010
Court: United States Bankruptcy Court
Eastern District of North Carolina (Wilson)
Judge: Randy D. Doub
Debtor's Counsel: William P. Janvier, Esq.
Everett Gaskins Hancock & Stevens, LLP
P.O. Box 911
Raleigh, NC 27602
Tel: (919) 755-0025
Fax: (919) 755-0009
E-mail: bill@EGHS.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
A list of the Company's 20 largest unsecured creditors
filed together with the petition is available for free
at http://bankrupt.com/misc/nceb10-05160.pdf
The petition was signed by Robert Abee, vice president.
SUN HEALTHCARE: Bank Debt Trades at 4% Off in Secondary Market
--------------------------------------------------------------
Participations in a syndicated loan under which Sun Healthcare
Group, Inc., is a borrower traded in the secondary market at 95.80
cents-on-the-dollar during the week ended Friday, July 2, 2010,
according to data compiled by Loan Pricing Corp. and reported in
The Wall Street Journal. This represents a drop of 0.85
percentage points from the previous week, The Journal relates.
The Company pays 200 basis points above LIBOR to borrow under the
facility. The bank loan matures on April 19, 2014, and carries
Moody's Ba2 rating and Standard & Poor's B+ rating. The debt is
one of the biggest gainers and losers among 191 widely quoted
syndicated loans with five or more bids in secondary trading for
the week ended Friday.
Sun Healthcare Group, Inc. -- http://www.sunh.com/-- provides
nursing, rehabilitative and related specialty healthcare services
principally to the senior population in the United States. Its
core business is providing inpatient services, primarily through
183 skilled nursing centers, 14 assisted and independent living
centers and eight mental health centers. As of Dec. 31, 2009, the
Company's centers had 23,205 licensed beds located in 25 states,
of which 22,423 were available for occupancy. The Company's
subsidiary engages in three business segments: inpatient services,
primarily skilled nursing centers; rehabilitation therapy
services, and medical staffing services.
SUNSET 8: Case Summary & Largest Unsecured Creditor
---------------------------------------------------
Debtor: Sunset 8, LLC
4035 S. El Capitan Way
Las Vegas, NV 89147
Bankruptcy Case No.: 10-22100
Chapter 11 Petition Date: June 29, 2010
Court: United States Bankruptcy Court
District of Nevada (Las Vegas)
Judge: Mike K. Nakagawa
Debtor's Counsel: Spencer M. Judd, Esq.
Macdonald & Judd
6625 W. Sahara, Ste 1
Las Vegas, NV 89146
Tel: (702) 870-1771
Fax: (702) 869-0683
E-mail: spencer@jsmjlaw.com
Scheduled Assets: $1,348,500
Scheduled Debts: $1,296,759
In its list of 20 largest unsecured creditors, the Company placed
only one entry:
Entity Nature of Claim Claim Amount
------ --------------- ------------
Nevada Commerce Bank $650,000
P.O. Box 29090
Las Vegas, NV 89126
The petition was signed by William A. Gayler, managing member.
SWIFT TRANSPORT: Bank Debt Trades at 8% Off in Secondary Market
---------------------------------------------------------------
Participations in a syndicated loan under which Swift
Transportation Co., Inc., is a borrower traded in the secondary
market at 92.42 cents-on-the-dollar during the week ended Friday,
July 2, 2010, according to data compiled by Loan Pricing Corp. and
reported in The Wall Street Journal. This represents a drop of
0.92 percentage points from the previous week, The Journal
relates. Company pays 325 basis points above LIBOR to borrow
under the facility. The bank loan matures on March 15, 2014, and
carries Moody's B3 rating and Standard & Poor's B- rating. The
debt is one of the biggest gainers and losers among 191 widely
quoted syndicated loans with five or more bids in secondary
trading for the week ended Friday.
Swift Transportation Co., Inc. -- http://www.swifttrans.com/--
hauls freight such as building materials, paper products, and
retail merchandise throughout the U.S. and in Mexico. The Company
operates a fleet of about 18,000 tractors and 48,000 trailers from
a network of about 40 terminals. Its services include dedicated
contract carriage, in which drivers and equipment are assigned to
a customer long-term. Besides standard dry ans, Swift's fleet
includes refrigerated, flatbed, and other specialized trailers, as
well as about 5,800 intermodal containers.
TC GLOBAL: March 2010 Balance Sheet Upside-Down By $4.1 Million
---------------------------------------------------------------
TC Global Inc. dba Tully's Coffee filed its annual report on Form
10-K for the fiscal year ended March 28, 2010, reporting
$13.7 million in total assets and $16.3 million in total
liabilities, for a $4.1 million total stockholders' deficit.
The Company reported a net loss of $5.1 million on $39.5 million
of net sales for the year ended March 28, 2010, compared with a
net income of $22.8 million on $38.6 million of net sales for the
year ended March 29, 2009.
A full-text copy of the Company's Form 10-K is available for free
at http://ResearchArchives.com/t/s?65ca
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.
TELETOUCH COMMUNICATIONS: Officers Acquire Stock Options
--------------------------------------------------------
Thomas A. Hyde Jr., president and chief operating officer at
Teletouch Communications Inc., disclosed acquiring on June 1,
2010, options to acquire 250,000 Company shares at $0.326 a share.
Following the deal, he may be deemed to directly own 1,934,650
Company shares.
Robert M. McMurrey, the Company's chief executive officer,
disclosed acquiring on June 1, 2010, options to acquire 319,000
Company shares at $0.326 a share. Following the deal, he may be
deemed to directly own 1,252,034 Company shares.
Michael A. Dickens, SVP Operations, disclosed acquiring on June 1,
2010, options to acquire 250,000 Company shares at $0.326 a share.
Director Marshall G. Webb disclosed acquiring on June 1, 2010,
options to acquire 40,000 Company shares at $0.326 a share.
Following the deal, he may be deemed to directly own 176,998
Company shares.
Director Clifford E. McFarland disclosed acquiring on June 1,
2010, options to acquire 40,000 Company shares at $0.326 a share.
Following the deal, he may be deemed to directly own 176,997
Company shares.
Director Henry Y L Toh disclosed acquiring on June 1, 2010,
options to acquire 40,000 Company shares at $0.326 a share.
Following the deal, he may be deemed to directly own 176,998
Company shares.
The option expires June 1, 2010.
Teletouch Communications, Inc., offers a comprehensive suite of
wireless telecommunications solutions, including cellular, two-way
radio, GPS-telemetry and wireless messaging. Teletouch is an
authorized provider of AT&T (NYSE: T) products and services
(voice, data and entertainment) to consumers, businesses and
government agencies, as well as an operator of its own two-way
radio network in Texas. Recently, Teletouch entered into national
agency and distribution agreements with Sprint (NYSE: S) and
Clearwire (NASDAQ: CLWR), providers of advanced 4G cellular
network services. Teletouch operates a chain of 26 retail and
agent stores under the "Teletouch" and "Hawk Electronics" brands,
in conjunction with its direct sales force, customer care (call)
centers and various retail eCommerce Web sites including:
http://www.hawkelectronics.com/and http://www.hawkexpress.com/
Through its wholly-owned subsidiary, Progressive Concepts, Inc.,
Teletouch operates a national distribution business, PCI
Wholesale, primarily serving large cellular carrier agents and
rural carriers, as well as auto dealers and smaller consumer
electronics retailers, with product sales and support available
through http://www.pciwholesale.com/and
http://www.pcidropship.com/among other B2B oriented Web sites.
As of February 28, 2010, the Company had total assets of
$20,996,000 against total liabilities of $30,145,000, resulting in
shareholders' deficit of $9,149,000.
TEMPLE MESSIANIQUE: Case Summary & 17 Largest Unsecured Creditors
-----------------------------------------------------------------
Debtor: Temple Messianique, Inc.
dba Center Donation Thrift Store
Messianique Child and Family Empowerment Centers
Temple Messianique Child Care Center & Kindergarten
5420 N State Roadd 7
Ft. Lauderdale, FL 33319
Bankruptcy Case No.: 10-28363
Chapter 11 Petition Date: June 29, 2010
Court: U.S. Bankruptcy Court
Southern District of Florida (Fort Lauderdale)
Judge: Raymond B. Ray
Debtor's Counsel: Zach B. Shelomith, Esq.
2699 Stirling Road # C401
Ft Lauderdale, FL 33312
Tel: (954) 920-5355
Fax: (954) 920-5371
E-mail: zshelomith@lslawfirm.net
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
According to the schedules, the Debtor says that assets total
$2,030,123 while debts total $5,683,744.
A copy of the Debtor's list of 17 largest unsecured
creditors filed together with the petition is available for
free at http://bankrupt.com/misc/flsb10-28363.pdf
The petition was signed by Joseph Valbrun, president.
TERRY DEFOOR: Voluntary Chapter 11 Case Summary
-----------------------------------------------
Debtor: Terry Defoor
Bullivant Houser Bailey PC
1601 Fifth Ave., Suite 2300
Seattle, WA 98104
Bankruptcy Case No.: 10-17470
Chapter 11 Petition Date: June 29, 2010
Court: United States Bankruptcy Court
Western District of Washington (Seattle)
Judge: Karen A. Overstreet
Debtor's Counsel: Charles A. Lyman, Esq.
Bullivant Houser Bailey PC
1601 5th Ave Ste 2300
Seattle, WA 98101
Tel: (206) 521-6524
E-mail: charles.lyman@bullivant.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
The Debtor did not file a list of its largest unsecured creditors
together with its petition.
The petition was signed by Terry Defoor.
TIME WARNER: Bank Debt Trades at 4% Off in Secondary Market
-----------------------------------------------------------
Participations in a syndicated loan under which Time Warner
Telecom, Inc., is a borrower traded in the secondary market at
95.83 cents-on-the-dollar during the week ended Friday, July 2,
2010, according to data compiled by Loan Pricing Corp. and
reported in The Wall Street Journal. This represents a drop of
0.66 percentage points from the previous week, The Journal
relates. The Company pays 200 basis points above LIBOR to borrow
under the facility. The loan matures on Sept. 12, 2013, and
carries Moody's Ba1 rating and Standard & Poor's B+ rating. The
debt is one of the biggest gainers and losers among 191 widely
quoted syndicated loans with five or more bids in secondary
trading for the week ended Friday.
Headquartered in Littleton, Colorado, Time Warner Telecom, Inc.
(Nasdaq: TWTC) -- http://www.twtelecom.com/provides managed
network services, specializing in Ethernet and transport data
networking, Internet access, local and long distance voice, VoIP
and security, to enterprise organizations and communications
services companies throughout the United States.
TRENTON LAND: Case Summary & 7 Largest Unsecured Creditors
----------------------------------------------------------
Debtor: Trenton Land Holdings, LLC
1491 West Jefferson Avenue
Trenton, MI 48183
Bankruptcy Case No.: 10-60990
Chapter 11 Petition Date: June 29, 2010
Court: U.S. Bankruptcy Court
Eastern District of Michigan (Detroit)
Judge: Steven W. Rhodes
Debtor's Counsel: Karin F. Avery, Esq.
Silverman & Morris, P.L.L.C.
7115 Orchard Lake Road, Suite 500
West Bloomfield, MI 48322
Tel: (248) 539-1330
E-mail: Avery@SilvermanMorris.com
Estimated Assets: $10,000,001 to $50,000,000
Estimated Debts: $10,000,001 to $50,000,000
The petition was signed by Michael Wilkinson, manager.
Debtor's List of 7 Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
------ --------------- ------------
Sapir Group LLC 195 acres in $10,000,000
c/o The Sapir Organization Trenton, Wayne
Attn: Richard L'Altrelli County
384 Fifth Avenue
New York, NY 10018
Deneb Investments, LLC 195 acres in $25,000,000
c/o Gregory L. Wysocki Trenton, Wayne
Kotz Sangster Wysocki & Berg, P.C. County
400 Renaissance Center-Suite 2555
Detroit, MI 48243
Wayne County Treasurer 195 acres in $3,653,131
c/o Jacob S. Ghannam, Esq. Trenton, Wayne
400 Monroe Street, Suite 660 County
Detroit, MI 48226
Mellissande Limited 195 acres in $2,606,185
38505 Woodward Avenue, Suite 2000 Trenton, Wayne
Bloomfield Hills, MI 48304 County
Sapir Group LLC -- $455,000
c/o The Sapir Organization
Attn: Richard L'Altrelli
384 Fifth Avenue
New York, NY 10018
Michigan Dept. of Environmental possible liability unknown
Quality
U.S. Environmental possible liability unknown
Protection Agency
TRI-CITY WOOD: Case Summary & 20 Largest Unsecured Creditors
------------------------------------------------------------
Debtor: Tri-City Wood Works, Incorporated
202 Old Dixie Highway
Lake Park, FL 33403-3095
Bankruptcy Case No.: 10-28293
Chapter 11 Petition Date: June 29, 2010
Court: U.S. Bankruptcy Court
Southern District of Florida (West Palm Beach)
Judge: Erik P. Kimball
Debtor's Counsel: Julianne R. Frank, Esq.
11382 Prosperity Farms Road #230
Palm Beach Gardens, FL 33410
Tel: (561) 626-4700
Fax: (561) 627-9479
E-mail: fwbbnk@bellsouth.net
Estimated Assets: $100,001 to $500,000
Estimated Debts: $1,000,001 to $10,000,000
According to the schedules, the Debtor says that assets total
$142,101 while debts total $3,034,556.
A copy of the Debtor's list of 20 largest unsecured
creditors filed together with the petition is available for
free at http://bankrupt.com/misc/flsb10-28293.pdf
The petition was signed by John Fowlds, Jr., president.
TRIAT INDUSTRIES: Voluntary Chapter 11 Case Summary
---------------------------------------------------
Debtor: Triat Industries, Inc.
3535 W. 47th Street
Chicago, IL 60632
Bankruptcy Case No.: 10-28886
Chapter 11 Petition Date: June 29, 2010
Court: United States Bankruptcy Court
Northern District of Illinois (Chicago)
Judge: Eugene R. Wedoff
Debtor's Counsel: Colleen E. McManus, Esq.
E-mail: cmcmanus@muchshelist.com
Kurt M. Carlson, Esq.
E-mail: kcarlson@muchshelist.com
Much Shelist
191 N. Wacker Drive
Suite 1800
Chicago, IL 60606
Tel: (312) 521-2000
Fax: (312) 521-2200
Estimated Assets: $10,000,001 to $50,000,000
Estimated Debts: $10,000,001 to $50,000,000
The petition was signed by Cliff Rusnak, executive vice president.
The Debtor did not file a list of its largest unsecured creditors
together with its petition.
TRIBUNE CO: Bank Debt Trades at 40% Off in Secondary Market
-----------------------------------------------------------
Participations in a syndicated loan under which Tribune Co. is a
borrower traded in the secondary market at 60.08 cents-on-the-
dollar during the week ended Friday, July 2, 2010, according to
data compiled by Loan Pricing Corp. and reported in The Wall
Street Journal. This represents a drop of 3.33 percentage points
from the previous week, The Journal relates. The Company pays 300
basis points above LIBOR to borrow under the facility, which
matures on May 17, 2014. Moody's has withdrawn its rating while
Standard & Poor's does not rate the bank debt. The debt is one of
the biggest gainers and losers among 191 widely quoted syndicated
loans with five or more bids in secondary trading for the week
ended Friday.
Headquartered in Chicago, Illinois, Tribune Co. --
http://www.tribune.com/-- is a media company, operating
businesses in publishing, interactive and broadcasting, including
ten daily newspapers and commuter tabloids, 23 television
stations, WGN America, WGN-AM and the Chicago Cubs baseball team.
The Company and 110 of its affiliates filed for Chapter 11
protection on Dec. 8, 2008 (Bankr. D. Del. Lead Case No. 08-
13141). The Debtors proposed Sidley Austion LLP as their counsel;
Cole, Schotz, Meisel, Forman & Leonard, PA, as Delaware counsel;
Lazard Ltd. and Alvarez & Marsal North Americal LLC as financial
advisors; and Epiq Bankruptcy Solutions LLC as claims agent. As
of Dec. 8, 2008, the Debtors have $7,604,195,000 in total assets
and $12,972,541,148 in total debts.
Bankruptcy Creditors' Service, Inc., publishes Tribune Bankruptcy
News. The newsletter tracks the chapter 11 proceeding undertaken
by Tribune Company and its various affiliates.
(http://bankrupt.com/newsstand/or 215/945-7000)
TRIBUNE CO: Bankruptcy Examiner Gets More Time for Probe of Buyout
------------------------------------------------------------------
American Bankruptcy Institute reports that the bankruptcy examiner
probing Tribune Co.'s 2007 buyout won more time to investigate
whether the deal is subject to a court challenge.
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)
TRONOX INC: Kerr-McGee Seeks Order on Spinoff Contract
------------------------------------------------------
Kerr-McGee Corp. has asked a bankruptcy judge to order its former
unit Tronox Inc. to either follow the terms of a spinoff contract
or officially reject the deal and allow Kerr-McGee to release
$96 million it's holding in reserve for environmental liabilities,
Bankruptcy Law360 reports.
Tronox Inc., aka New-Co Chemical, Inc., and 14 other affiliates
filed for Chapter 11 protection on January 13, 2009 (Bankr.
S.D.N.Y. Case No. 09-10156). The case is before Hon. Allan L.
Gropper. Richard M. Cieri, Esq., Jonathan S. Henes, Esq., and
Colin M. Adams, Esq., at Kirkland & Ellis LLP in New York,
represent the Debtors. The Debtors also tapped Togut, Segal &
Segal LLP as conflicts counsel; Rothschild Inc. as investment
bankers; Alvarez & Marsal North America LLC, as restructuring
consultants; and Kurtzman Carson Consultants serves as notice and
claims agent.
An official committee of unsecured creditors and an official
committee of equity security holders have been appointed in the
cases. The Creditors Committee has retained Paul, Weiss, Rifkind,
Wharton & Garrison LLP as counsel.
Until September 30, 2008, Tronox Inc. was publicly traded on the
New York Stock Exchange under the symbols TRX and TRX.B. Since
then, Tronox Inc. has traded on the Over the Counter Bulletin
Board under the symbols TROX.A.PK and TROX.B.PK. As of
December 31, 2008, Tronox Inc. had 19,107,367 outstanding shares
of class A common stock and 22,889,431 outstanding shares of class
B common stock.
Bankruptcy Creditors' Service, Inc., publishes Tronox Bankruptcy
News. The newsletter tracks the Chapter 11 proceeding undertaken
by Tronox Inc. and its 14 affiliates.
(http://bankrupt.com/newsstand/or 215/945-7000)
TRUVO USA: Case Summary & 3 Largest Unsecured Creditors
-------------------------------------------------------
Debtor: Truvo USA LLC
Corporation Trust Center
1209 Orange Street
Wilmington, DE 10017
Bankruptcy Case No.: 10-13513
About the Business: Truvo USA LLC publishes print and online
directories through its operating
subsidiaries. The operating subsidiaries have
not sought protection under Chapter 11
protection or any other insolvency regime. The
Truvo Chapter 11 debtors are owned Truvo
Luxembourg S.a.r.l, which is not a debtor in
the Chapter 11 proceedings.
Chapter 11 Petition Date: July 1, 2010
Court: U.S. Bankruptcy Court
Southern District of New York (Manhattan)
Judge: Arthur J. Gonzalez
Debtor's Counsel: Sean A. O'Neal, Esq.
E-mail: soneal@cgsh.com
Thomas J. Moloney, Esq.
E-mail: maofiling@cgsh.com
Cleary Gottlieb Steen & Hamilton, LLP
One Liberty Plaza
New York, NY 10006
Tel: (212) 225-2416
Fax: (212) 225-3999
Vincent Edward Lazar, Esq.
Jenner & Block LLP
353 N. Clark Street
Chicago, IL 60654
Tel: (312) 923-2989
Fax: (312) 840-7389
E-mail: vlazar@jenner.com
Debtor's Special
Counsel: Jenner & Block LLP
Debtor's Special
Counsel: Simpson Thacher & Bartlett LLP
Debtor's
Restructuring
and Financial
Advisor: Houlihan Lokey Howard & Zukin (Europe), Limited
Estimated Assets: $500,000,001 to $1 billion
Estimated Debts: more than $1 billion
The petition was signed by Marc C. F. Goegebuer, manager.
Debtor-affiliates filing separate Chapter 11 petition:
Entity Case No. Petition Date
------ -------- -------------
Truvo Parent Corp. 10-13514 07/01/10
Assets: $500,000,001 to $1 billion
Debts: $10 million to $50 million
Truvo Intermediate LLC 10-_____ 07/01/10
Truvo Subsidiary Corp. 10-_____ 07/01/10
Truvo Acquisition Corp. 10-_____ 07/01/10
Debtor's List of 3 Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
------ --------------- ------------
J.P. Morgan Europe Limited Guarantee of EUR777,624,506
Attn: Ashisha Baluja Borrowings
125 London Wall
London EC2Y 5AG
UK
The Bank of New York Guarantee ?395,000,000
Attn: Corporate Trust Administration
101 Barclay Street,
New York, NY 10286
The Bank of New York Guarantee $200,000,000
Attn: Corporate Trust Administration
101 Barclay Street,
New York, NY 10286
TUAN SAM: Voluntary Chapter 11 Case Summary
-------------------------------------------
Joint Debtors: Tuan Anh Sam
Aka Tuan A. Sam
Jessica Quinn
3121 Oakgate Way
San Jose, CA 95148
Bankruptcy Case No.: 10-56702
Chapter 11 Petition Date: June 29, 2010
Court: U.S. Bankruptcy Court
Northern District of California (San Jose)
Judge: Roger L. Efremsky
Debtor's Counsel: Lars T. Fuller, Esq.
The Fuller Law Firm
60 N Keeble Avenue
San Jose, CA 95126
Tel: (408) 295-5595
E-mail: Fullerlawfirmecf@aol.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
According to the schedules, the Debtors say that assets total
$2,059,980 while debts total $2,916,545.
The Debtors did not file a list of creditors together with its
petition.
The petition was signed by the Joint Debtors.
UNITED AIR LINES: Bank Debt Trades at 13% Off in Secondary Market
-----------------------------------------------------------------
Participations in a syndicated loan under which United Air Lines,
Inc., is a borrower traded in the secondary market at 87.13 cents-
on-the-dollar during the week ended Friday, July 2, 2010,
according to data compiled by Loan Pricing Corp. and reported in
The Wall Street Journal. This represents a drop of 1.05
percentage points from the previous week, The Journal relates.
The Company pays 200 basis points above LIBOR to borrow under the
facility. The bank loan matures on Feb. 13, 2013, and carries
Moody's B3 rating and Standard & Poor's B+ rating. The debt is
one of the biggest gainers and losers among 191 widely quoted
syndicated loans with five or more bids in secondary trading for
the week ended Friday.
Based in Chicago, Illinois, UAL Corporation (NASDAQ: UAUA) --
http://www.united.com/-- is the holding company for United Air
Lines, Inc. United Airlines is the world's second largest air
carrier. The airline flies to Brazil, Korea and Germany.
The company filed for Chapter 11 protection on Dec. 9, 2002
(Bankr. N.D. Ill. Case No. 02-48191). James H.M. Sprayregen,
Esq., Marc Kieselstein, Esq., David R. Seligman, Esq., and Steven
R. Kotarba, Esq., at Kirkland & Ellis, represented the Debtors in
their restructuring efforts. Fruman Jacobson, Esq., at
Sonnenschein Nath & Rosenthal LLP represented the Official
Committee of Unsecured Creditors before the Committee was
dissolved when the Debtors emerged from bankruptcy.
Judge Eugene R. Wedoff confirmed the Debtors' Second Amended Plan
on Jan. 20, 2006. The company emerged from bankruptcy protection
on Feb. 1, 2006. (United Airlines Bankruptcy News; Bankruptcy
Creditors' Service Inc., http://bankrupt.com/newsstand/or
215/945-7000).
US AIRWAYS: Drops Plan to Swap Airport Slots with Delta Air
-----------------------------------------------------------
Doug Cameron at Dow Jones Newswires reports that Delta Air Lines
Inc. and US Airways Group Inc. said Friday they are dropping plans
to swap landing rights at two of the country's busiest airports
following a demand by regulators that they cede some slots to
rivals. The airlines said they would seek a judicial review of
the requirement from regulators that they surrender takeoff and
landing slots at New York's LaGuardia Airport and Ronald Reagan
National in Washington, D.C., through a blind auction.
Dow Jones relates Delta and US Airways had sought to counter
opposition to the plan -- mainly from Southwest Airlines Co. -- by
offering to transfer some slots to JetBlue Airways Corp., AirTran
Holdings Inc., Spirit Airlines Inc. and Canada's WestJet Airlines
Ltd.
According to Dow Jones, the airlines said in a letter to the
Department of Transportation and the Federal Aviation
Administration that they would proceed with the deal if the
conditions were dropped.
About Delta Air Lines
Atlanta, Georgia-based Delta Air Lines (NYSE: DAL) --
http://www.delta.com/or http://www.nwa.com/-- serves more than
160 million customers each year. Delta and the Delta Connection
carriers offer service to 367 destinations in 66 countries on six
continents. Delta employs more than 70,000 employees worldwide
and operates a mainline fleet of nearly 800 aircraft. A founding
member of the SkyTeam global alliance, Delta participates in the
industry's trans-Atlantic joint venture with Air France KLM.
Including its worldwide alliance partners, Delta offers customers
more than 16,000 daily flights, with hubs in Amsterdam, Atlanta,
Cincinnati, Detroit, Memphis, Minneapolis-St. Paul, New York-JFK,
Paris-Charles de Gaulle, Salt Lake City and Tokyo-Narita. The
airline's service includes the SkyMiles frequent flier program,
the world's largest airline loyalty program; the BusinessElite
service; and more than 50 Delta Sky Clubs in airports worldwide.
Delta became the world's largest airline following merger with
Northwest Airlines in 2008.
Northwest and 12 affiliates filed for Chapter 11 protection on
September 14, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-17930).
On May 21, 2007, the Court confirmed the Northwest Debtors'
amended plan. That amended plan took effect May 31, 2007.
Delta and 18 affiliates filed for Chapter 11 protection on
September 14, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-17923).
Marshall S. Huebner, Esq., at Davis Polk & Wardwell, represented
the Delta Debtors in their restructuring efforts. On April 25,
2007, the Court confirmed the Delta Debtors' plan. That plan
became effective on April 30, 2007.
At December 31, 2009, Delta had total assets of $43,539,000,000
against total current liabilities of $9,797,000,000 and total
noncurrent liabilities of $33,497,000,000, resulting in
stockholders' equity of $245,000,000. At end-2008, Delta had
stockholders' equity of $874,000,000. The December 31, 2009
balance sheet showed strained liquidity: Delta had total current
assets of $7,741,000,000 against total current liabilities of
$9,797,000,000.
(Bankruptcy Creditors Service Inc. publishes Delta Air Lines
Bankruptcy News, http://bankrupt.com/newsstand/or 215/945-7000).
* * *
Delta Air Lines and Northwest Airlines carry a 'B/Negative/--'
corporate ratings from Standard & Poor's. They also continue to
carry 'B2' corporate family ratings from Moody's and "B-" LT
Issuer Default rating from Fitch.
About US Airways
US Airways -- http://www.usairways.com/-- along with US Airways
Shuttle and US Airways Express, operates more than 3,000 flights
per day and serves more than 190 communities in the U.S., Canada,
Mexico, Europe, the Middle East, the Caribbean, Central and South
America.
Under a Chapter 11 plan declared effective on March 31, 2003,
USAir emerged from bankruptcy with the Retirement Systems of
Alabama taking a 40% equity stake in the deleveraged carrier in
exchange for $240 million infusion of new capital.
US Airways and its subsidiaries filed another Chapter 11 petition
on September 12, 2004 (Bankr. E.D. Va. Case No. 04-13820). Brian
P. Leitch, Esq., Daniel M. Lewis, Esq., and Michael J. Canning,
Esq., at Arnold & Porter LLP, and Lawrence E. Rifken, Esq., and
Douglas M. Foley, Esq., at McGuireWoods LLP, represented the
Debtors in their restructuring efforts. The USAir II bankruptcy
plan became effective on September 27, 2005. The Debtors
completed their merger with America West on the same date. (US
Airways Bankruptcy News; Bankruptcy Creditors' Service Inc.,
http://bankrupt.com/newsstand/or 215/945-7000).
* * *
As of December 31, 2009, US Airways had total assets of
$7,454,000,000, including $2,331,000,000 in total current assets,
against total current liabilities of $2,789,000,000 and total
noncurrent liabilities and deferred credits of $5,020,000,000,
resulting in $355,000,000 stockholders' deficit.
US Airways Group carries Moody's "Caa1" Long-Term rating, LT Corp.
family rating and probability of default rating. Outlook is
negative.
US Airways Group carries Standard & Poor's "B-" LT Foreign Issuer
Credit rating and LT Local Issuer credit rating. Outlook is also
negative.
US Airways Group carries Fitch's "CCC" LT Issuer default rating
and "C" Senior unsecured debt rating. Outlook is also negative.
US CONCRETE: Texas Tax Agency Objects to Chapter 11 Plan
--------------------------------------------------------
The chief tax collector of Texas has objected to U.S. Concrete
Inc.'s reorganization plan, arguing that bankruptcy judges must
put a halt to the accepted practice of nixing creditors' setoff
rights, particularly in light of the high court's guidance in
Espinosa v. United States Aid Funds Inc. Bankruptcy Law360 reports
In an objection filed June 30, Law360 says, the Texas Comptroller
of Public Accounts called for a "fundamental reassessment" of the
confirmation process that would undo years of common court
practice.
About U.S. Concrete
Houston, Tex.-based U.S. Concrete, Inc., aka RMX Industries, Inc.,
is a major producer of ready-mixed concrete, precast concrete
products and concrete-related products in select markets in the
United States.
The Company filed for Chapter 11 bankruptcy protection on
April 29, 2010 (Bankr. D. Del. Case No. 10-11407). Patrick J.
Nash Jr., Esq., and Ross M. Kwasteniet, Esq., at Kirkland & Ellis
LLP, assist the Company in its restructuring effort as bankruptcy
counsel. James E. O'Neill, Esq., Laura Davis Jones, Esq., and
Mark M. Billion, Esq., at Pachulski Stang Ziehl & Jones LLP, is
the Company's co-counsel. Epiq Bankruptcy Solutions is the
Company's claims agent.
According to the schedules, the Company says that assets total
$389,160,000 while debts total $399,351,000.
The Debtor's affiliates, Alberta Investments, Inc., et al., filed
separate Chapter 11 petitions on April 29, 2010.
US ENERGY: Files First Amended Chapter 11 Plan of Reorganization
----------------------------------------------------------------
U.S. Energy Systems filed with the U.S. Bankruptcy Court a First
Amended Chapter 11 Plan of Reorganization and related Disclosure
Statement, BankruptcyData.com reports.
According to the Disclosure Statement, the Plan provides for the
following: "All Allowed Secured Claims to be Unimpaired, if and to
the extent that any such Claims exist; Payment in full of all
Unclassified Claims out of the Plan Fund; Payment in full of all
Allowed Priority Non-Tax Claims out of the Plan Fund; Holders of
Allowed General Unsecured Claims to receive (a) their Ratable
Portion of the Unsecured Distribution Fund on the Unsecured
Distribution Date to the extent that the Plan Administrator
determines there are sufficient funds in the Unsecured
Distribution Fund, if ever, to justify a Distribution to Holders
of Allowed General Unsecured Claims, or (b) such other less
favorable treatment as may be agreed upon by the Holder of such
Claim and the Plan Administrator; and The indefeasible
cancellation of all Allowed Interests in the Debtor."
About U.S. Energy
Based in Avon, Connecticut, U.S. Energy Systems, Inc., (Pink
Sheets: USEY) -- http://www.usenergysystems.com/-- owns green
power and clean energy and resources. USEY owns and operates
energy projects in the United States and United Kingdom that
generate electricity, thermal energy and gas production.
The company filed for Chapter 11 protection on Jan. 9, 2008 (Bank.
S.D. N.Y. Case No. 08-10054). Subsequently, 34 affiliates filed
separate Chapter 11 petitions. Peter S. Partee, Esq., at
Hunton & Williams LLP, represents the Debtor in its restructuring
efforts. Jefferies & Company, Inc., serves as the company's
financial advisor. The Debtor selected Epiq Bankruptcy Solutions
LLC as noticing, claims and balloting agent.
The Official Committee of Unsecured Creditors has yet to be
appointed in these cases by the U.S. Trustee for Region 2. When
the Debtors filed for protection from their creditors, they listed
total assets of US$258,200,000 and total debts of US$175,300,000.
VENETIAN MACAU: Bank Debt Trades at 3% Off in Secondary Market
--------------------------------------------------------------
Participations in a syndicated loan under which Venetian Macau US
Finance Co. LLC is a borrower traded in the secondary market at
96.93 cents-on-the-dollar during the week ended Friday, July 2,
2010, according to data compiled by Loan Pricing Corp. and
reported in The Wall Street Journal. This represents a drop of
0.93 percentage points from the previous week, The Journal
relates. The Company pays 550 basis points above LIBOR to borrow
under the facility. The bank loan matures on May 25, 2011, and
carries Moody's B3 rating and Standard & Poor's B- rating.
Meanwhile, participations in a syndicated loan under which Las
Vegas Sands Corp. is a borrower traded in the secondary market at
87.97 cents-on-the-dollar during the week ended Friday, July 2,
2010, according to data compiled by Loan Pricing Corp. and
reported in The Wall Street Journal. This represents a drop of
1.28 percentage points from the previous week, The Journal
relates. The Company pays 175 basis points above LIBOR to borrow
under the facility. The bank loan matures on May 1, 2014, and
carries Moody's B3 rating and Standard & Poor's B- rating.
The debt are two of the biggest gainers and losers among 191
widely quoted syndicated loans with five or more bids in secondary
trading for the week ended Friday.
Venetian Macau US Finance Co., LLC (also known as VML US Finance
LLC), and Venetian Macau Limited are wholly owned subsidiaries of
Las Vegas Sands. Venetian Macau Limited owns the Sands Macau in
the People's Republic of China Special Administrative Region of
Macau and is also developing additional casino hotel resort
properties in Macau.
Based in Las Vegas, Nevada, Las Vegas Sands Corp. (NYSE: LVS) --
http://www.lasvegassands.com/-- owns and operates The Venetian
Resort Hotel Casino, The Palazzo Resort Hotel Casino, and an expo
and convention center. The company also owns and operates the
Sands Macao, the first Las Vegas-style casino in Macao, China.
VERAZ NETWORKS: Receives NASDAQ Listing Compliance Notice
---------------------------------------------------------
Veraz Networks disclosed that on July 1, 2010, it received a
letter from the NASDAQ Stock Market stating that the minimum
closing bid price of the Veraz's common stock was below $1.00 per
share for 30 consecutive business days and thus not in compliance
with Listing Rule 5550(a) (2). The notification letter has no
effect at this time on the listing of the Veraz's common stock on
the NASDAQ Global Market and Veraz's common stock will continue to
trade on the NASDAQ Global Market under the symbol VRAZ.
The notification letter states that Veraz will be afforded 180
calendar days, or until December 28, 2010, to regain compliance
with the minimum closing bid price requirement. To regain
compliance, the closing bid price of the Veraz's common stock must
meet or exceed $1.00 per share for at least ten consecutive
business days. If Veraz demonstrates an ability to maintain long
term compliance, NASDAQ will provide written confirmation of
compliance and the matter will be closed.
If Veraz does not regain compliance by December 28, 2010, NASDAQ
will provide written notification to Veraz that it's common stock
may be delisted. At that time, Veraz may appeal NASDAQ's
delisting determination to a NASDAQ Listing Qualifications Panel.
Veraz intends to actively monitor the bid price for its common
stock between now and December 28, 2010, and will consider
available options to regain compliance with the NASDAQ minimum
closing bid price requirement.
About Veraz Networks
Veraz Networks, Inc., is the leading provider of application,
control, and bandwidth optimization products that enable the
evolution to the Multimedia Generation Network (MGN). Veraz
Networks makes it possible for fixed and mobile service providers
to create, manage and transport application sessions cost-
effectively and securely across TDM and IP networks. Service
providers worldwide use the Veraz MGN portfolio to extend their
existing legacy applications to new all-IP based networks, rapidly
add customized services that drive revenue, and lower the cost of
session transport. The Veraz MGN architecture separates the
control, media, and application layers while unifying management
of the network, enabling any application to run over any network
while optimizing session control and transport. Wireline and
wireless service providers in more than 60 countries have deployed
products from the Veraz MGN portfolio, which includes the
ControlSwitch(TM), Network-adaptive Border Controller, I-Gate 4000
Media Gateways, I-Gate 4000 Session Bandwidth Optimizer, I-Gate
4000 SIP Gateway, VerazView Management System, and a set of
prepackaged applications.
VINE STREET: Case Summary & 11 Largest Unsecured Creditors
----------------------------------------------------------
Debtor: Vine Street Condos, L.P.
2424 E. York Street, Suite 231
Philadelphia, PA 19125
Bankruptcy Case No.: 10-15272
Chapter 11 Petition Date: June 29, 2010
Court: United States Bankruptcy Court
Eastern District of Pennsylvania (Philadelphia)
Judge: Stephen Raslavich
Debtor's Counsel: Leslie Beth Baskin, Esq.
Spector Gadon Rosen
1635 Market Street
Seven Penn Center - 7th Floor
Philadelphia, PA 19103
Tel: (215) 241-8888
Fax: (215) 241-8844
E-mail: lbaskin@lawsgr.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
A list of the Company's 11 largest unsecured creditors
filed together with the petition is available for free
at http://bankrupt.com/misc/paeb10-15272.pdf
The petition was signed by El Medini, as managing member of Vine
Street Condos, LLC, the general partner of Vine Street Condos,
L.P.
VISTEON CORP: Files Fourth Amended Joint Plan of Reorganization
---------------------------------------------------------------
Visteon filed with the U.S. Bankruptcy Court a Fourth Amended
Joint Plan of Reorganization and related Disclosure Statement,
BankruptcyData.com reports.
"The Plan is comprised of two mutually exclusive sub plans-the
Rights Offering Sub Plan and the Claims Conversion Sub Plan
(together, the 'Sub Plans'). The Plan Support Agreement has been
executed and delivered by holders of more than two-thirds in
amount of the 12.25% Senior Notes Claims and two-thirds in
aggregate amount of the 7.00% Senior Notes Claims and the 8.25%
Senior Notes Claims. The Plan Support Agreement was approved by
the Bankruptcy Court on June 17, 2010 [Docket No. 3427]. The
Creditors' Committee also supports the Debtors' Plan," according
to the Disclosure Statement obtained by BData.
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)
VOICESERVE INC: Michael Studer Raises Going Concern Doubt
---------------------------------------------------------
Voiceserve, Inc., filed on June 29, 2010, its annual report on
Form 10-K for the year ended March 31, 2010.
Michael T. Studer CPA P.C., in Freeport, New York, expressed
substantial doubt about the Company's ability to continue as a
going concern. The independent auditor noted that as of
March 31, 2010, the Company had negative working capital of
$475,863. Further, since inception, the Company has incurred
losses of $2,994,155.
The Company reported a net loss of $665,442 on $3,310,065 of
revenue for the three months ended March 31, 2010, compared with a
net loss of $371,013 on $1,931,529 of revenue for the same period
ended March 31, 2009.
The Company's balance sheet at March 31, 2010, showed
$2,503,714 in assets, $744,041 of liabilities, and $1,759,673 of
stockholders' equity.
A full-text copy of the annual report is available for free at:
http://researcharchives.com/t/s?65b4
Headquartered in Middlesex, England, Voiceserve, Inc. develops and
markets software, services and solutions that the Company believes
empower its customers to communicate more efficiently and
economically through the Internet throughout the world.
WAVELAND PROFESSIONAL: Voluntary Chapter 11 Case Summary
--------------------------------------------------------
Debtor: Waveland Professional Plaza, LLC
407 Hwy. 90
P.O. Box 4281
Bay St. Louis
Waveland, MS 39521
Bankruptcy Case No.: 10-51497
Chapter 11 Petition Date: June 29, 2010
Court: United States Bankruptcy Court
Southern District of Mississippi
(Gulfport Divisional Office)
Judge: Neil P. Olack
Debtor's Counsel: William J. Little, Jr., Esq.
Lentz & Little, P.A.
P.O. Box 927
Gulfport, MS 39502
Tel: (228) 867-6050
Fax: (228) 867-6077
E-mail: littlewj@bellsouth.net
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
The Debtor did not file a list of its largest unsecured creditors
together with its petition.
The petition was signed by John Neumeyer, authorized agent.
WESTMORELAND COAL: Files 2009 Annual Report on Savings Plan
-----------------------------------------------------------
Westmoreland Coal Company filed with the Securities and Exchange
Commission an annual report on Form 11-K for the Westmoreland Coal
Company and Subsidiaries Employees' Savings Plan for the year
ended December 31, 2009. Net assets available for benefits at
December 31, 2009, total $35,422,938.
A full-text copy of the Form 11-K report is available at no charge
at http://ResearchArchives.com/t/s?65d0
About Westmoreland Coal
Based in Colorado Springs, Colorado, Westmoreland Coal Company
(NYSE Amex:WLB) -- http://www.westmoreland.com/-- is the oldest
independent coal company in the United States. The Company's coal
operations include coal mining in the Powder River Basin in
Montana and lignite mining operations in Montana, North Dakota and
Texas. Its power operations include ownership of the two-unit
Roanoke Valley coal-fired power plant in North Carolina.
At March 31, 2010, the Company had total assets of
$778.518 million against total liabilities of $921.296 million and
non-controlling interest of $2.707 million, resulting in total
deficit of $142.778 million. The Company's balance sheet at
March 31, 2010, showed strained liquidity: The Company had total
current assets of $119.022 million against total current
liabilities of $181.615 million.
Westmoreland Coal said there is substantial doubt about its
ability to continue as a going concern, citing its recurring
losses from operations, violation of a debt covenant by a
subsidiary, its working capital deficit, and its net capital
deficiency.
Westmoreland Resources, Inc., did not comply with its amended net
worth requirement contained in its Business Loan Agreement at
April 30, 2010, and does not expect to meet this requirement for
at least the next 12 months. Westmoreland Coal has classified
WRI's $11.4 million term debt as a current liability.
WESTMORELAND COAL: Officers Acquire Restricted Stock Units
----------------------------------------------------------
Keith E. Alessi, president, CEO and director of Westmoreland Coal
Company, disclosed acquiring 59,775 shares of Westmoreland
restricted stock units on July 1, 2010. He may be deemed to
directly hold 79,775 shares after the deal.
Kevin A. Paprzycki, chief financial officer, disclosed acquiring
8,916 shares of Westmoreland restricted stock units on July 1,
2010. He may be deemed to directly hold 12,649 shares after the
deal.
Douglas P. Kathol, executive vice president, disclosed acquiring
14,769 shares of Westmoreland restricted stock units on July 1,
2010. He may be deemed to directly hold 18,502 shares after the
deal.
John OLaughlin, VP-Coal Operations, disclosed acquiring 9,852
shares of Westmoreland restricted stock units on July 1, 2010. He
may be deemed to directly hold 15,452 shares after the deal.
General counsel Morris W. Kegley disclosed acquiring 6,570 shares
of Westmoreland restricted stock units on July 1, 2010. He may be
deemed to directly hold 10,303 shares after the deal.
Each Restricted Stock Unit represents a contingent right to
receive one share of common stock. The Restricted Stock Units
vest in three equal installments on an annual basis beginning
July 1, 2011.
About Westmoreland Coal
Based in Colorado Springs, Colorado, Westmoreland Coal Company
(NYSE Amex:WLB) -- http://www.westmoreland.com/-- is the oldest
independent coal company in the United States. The Company's coal
operations include coal mining in the Powder River Basin in
Montana and lignite mining operations in Montana, North Dakota and
Texas. Its power operations include ownership of the two-unit
Roanoke Valley coal-fired power plant in North Carolina.
At March 31, 2010, the Company had total assets of
$778.518 million against total liabilities of $921.296 million and
non-controlling interest of $2.707 million, resulting in total
deficit of $142.778 million. The Company's balance sheet at
March 31, 2010, showed strained liquidity: The Company had total
current assets of $119.022 million against total current
liabilities of $181.615 million.
Westmoreland Coal said there is substantial doubt about its
ability to continue as a going concern, citing its recurring
losses from operations, violation of a debt covenant by a
subsidiary, its working capital deficit, and its net capital
deficiency.
Westmoreland Resources, Inc., did not comply with its amended net
worth requirement contained in its Business Loan Agreement at
April 30, 2010, and does not expect to meet this requirement for
at least the next 12 months. Westmoreland Coal has classified
WRI's $11.4 million term debt as a current liability.
WHITE MOUNTAINS: Fitch Affirms All Issuer Default Ratings
---------------------------------------------------------
Fitch Ratings has affirmed all Issuer Default Ratings, debt and
Insurer Financial Strength ratings for White Mountains Insurance
Group, Ltd., and its property/casualty insurance subsidiaries,
including OneBeacon Insurance Group, Ltd.'s subsidiaries (75.4%
ownership by White Mountains) and White Mountains Re Group, Ltd.
and its subsidiaries. The Rating Outlook has been revised to
Stable from Negative. Fitch has also affirmed and withdrawn the
IFS ratings of York Insurance Company of Maine and Massachusetts
Homeland Insurance Company, following the sale of these insurance
operating companies to Tower Group Inc. A full rating list is
shown below.
The Outlook revision to Stable reflects the company's improvement
in capitalization and earnings, reduced financial leverage and
lower investment risk. Fitch's ratings continue to reflect White
Mountains' disciplined underwriting and operating strategy, solid
management team and recent favorable loss reserve development.
Weighted against these positives are sizable levels of run-off
reserves and asbestos and environmental exposure and poor
underwriting results in the first quarter of 2010.
White Mountains' capital position improved with common
shareholders' equity up 24% since year-end 2008 to $3.6 billion at
March 31, 2010, following the significant 38% decline in 2008.
The improvement was driven by $470 million of net income in 2009,
compared to a net loss of $555 million in 2008, as credit and
investment markets recovered in 2009. Unfavorably, White
Mountains posted a net loss of $40 million in the first quarter of
2010, due to higher catastrophe losses in White Mountains Re from
the Chilean earthquake and in OneBeacon from Northeastern U.S.
storms. Favorably, Fitch notes that the majority of OneBeacon's
catastrophe losses are related to either run-off non-specialty
commercial lines business or personal lines business subsequently
sold.
Financial leverage also improved to a debt-to-total-capital ratio
of 19% at March 31, 2010, down from 28% at Dec. 31, 2008,
reflecting the shareholders' equity increase as well as
approximately $336 million in total debt reduction from repayments
and repurchases of outstanding debt. Debt levels will be reduced
even further following OneBeacon's recently completed $156 million
debt tender offer.
White Mountains has also demonstrated reduced investment
volatility. In particular, variable annuity reinsurance risk in
its White Mountains Life Re business has stabilized, posting break
even results over the past three quarters, following $236 million
of losses posted from third quarter 2008 through second quarter
2009. Furthermore, the company's investment portfolio continues
to have a much reduced exposure to convertible fixed maturities,
common equity securities and other investments (including hedge
funds, limited partnerships and private equities) at 13% of the
total portfolio on March 31, 2010, compared to 23% at June 30,
2008.
The rating action also follows OneBeacon's announcement that it
closed on its transaction for the sale of its traditional personal
lines business to Tower Group, Inc. Fitch views this transaction
as consistent with White Mountains' and OneBeacon's strategy of
continually evaluating the best use of its financial resources and
actively managing and deploying its capital with an opportunistic
approach. As such, the company will sell those businesses that
either do not fit within the core operations of the company or
still have value to other companies/buyers as entities or renewal
rights in excess of White Mountains' assessment of their value.
This transaction follows the renewal rights sale on the majority
of OneBeacon's commercial lines business to The Hanover Insurance
Group, Inc., effective Jan. 1, 2010. The combination of these
transactions accelerates OneBeacon's strategy of focusing on more
specialized businesses, with the company's remaining business
predominately consisting of its diversified specialty lines book.
As a result, OneBeacon's annual ongoing net premium base will
decline considerably, from about $1.9 billion to $1 billion.
While this will reduce the company's overall premium size, it will
also significantly reduce its catastrophe risk and decrease its
geographic concentration in the Northeastern U.S. Furthermore, the
specialty lines business generally has a more profitable
underwriting profile for OneBeacon than the commercial or personal
lines businesses, which typically require greater scale to achieve
adequate returns over time.
These transactions will free up capital that previously supported
the business writings, providing financial flexibility that
OneBeacon could use to support additional specialty lines
businesses, debt reduction, dividends or share repurchases.
However, Fitch expects that OneBeacon will continue to maintain a
level of insurance company capitalization that is consistent with
the current ratings, particularly as reserves associated with the
renewal rights business are run-off over the next several years.
Fitch affirms these ratings with a Stable Outlook:
White Mountains Insurance Group, Ltd.
-- Issuer Default Rating at 'BBB+'.
OneBeacon U.S. Holdings, Inc.
-- IDR at 'BBB+';
-- $420 million 5.875% due May 15, 2013 'BBB'.
White Mountains Re Group, Ltd.
-- IDR at 'BBB+';
-- $400 million 6.375% due March 20, 2017 at 'BBB';
-- $250 million perpetual non-cumulative preference shares at
'BB+'.
OneBeacon Insurance Group and Their Members:
Atlantic Specialty Insurance Company
AutoOne Insurance Company
AutoOne Select Insurance Company
Camden Fire Insurance Association (The)
Employers' Fire Insurance Company (The)
Essentia Insurance Company
Homeland Insurance Company of New York
Northern Assurance Company of America (The)
OneBeacon America Insurance Company
OneBeacon Insurance Company
OneBeacon Lloyd's of Texas
OneBeacon Midwest Insurance Company
Pennsylvania General Insurance Company
Traders & General Insurance Company
-- IFS at 'A'.
White Mountains Reinsurance Company of America
-- IFS at 'A-'.
Sirius International Insurance Corporation
-- IFS at 'A-'.
Fitch affirms and withdraws these ratings:
Massachusetts Homeland Insurance Company
-- IFS at 'A'.
York Insurance Company of Maine
-- IFS at 'A'.
WOODCREST CLUB: Plan Confirmation Hearing Set for July 27
---------------------------------------------------------
The Hon. Dorothy Eisenberg of the U.S. Bankruptcy Court for the
Eastern District of New York will consider on July 27, 2010, at
10:00 a.m., the approval of Disclosure Statement and confirmation
of The Woodcrest Club, Inc.'s proposed Plan of Liquidation. The
hearing will be held at 290 Federal Plaza, Central Islip, New
York.
All ballots and objections to the proposed Plan must be received
by SilvermanAcampora LLP Attn: Andres Nunez, by July 21.
As reported in the Troubled Company Reporter on April 19, 2010,
according to the Disclosure Statement, the Plan provides for the
auction of the Debtor's assets. The Debtor relates that the
proceeds of the sale will provide the Debtor funds with which to
(a) pay 100% of allowed unsecured creditor claims with interest
from the petition date; and (b) establish a disputed claims
reserve with cash sufficient to pay the full amount of disputed
claims. The Debtor also expects that its bondholders will receive
full payment as provided by their respective bonds.
Under the Plan, the Debtor will pay Class 1 and 3 Claims,
administrative claims and professional fees in cash after the
effective date with cash on hand from the closing of the sale of
the Debtor's property.
Payments to be made to time insurance on account of Class 2(a)
Claim and the DIP Lenders on account of their Class 2(b) Claims
will be made at the closing of the sale of the Debtor's real
property.
A full-text copy of the Blacklined Disclosure Statement is
available for free at:
http://bankrupt.com/misc/WOODCRESTCLUB_BlacklinedDS.pdf
About The Woodcrest Club, Inc.
Headquartered in Syosset, New York, The Woodcrest Club, Inc.,
operates storage units. The Company filed for Chapter 11
bankruptcy protection on December 10, 2009 (Bankr. E.D. N.Y. Case
No. 09-79481). Kenneth P. Silverman, Esq., and Gerard R. Luckman,
Esq., at Silverman Acampora LLP assist 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.
XERIUM TECHNOLOGIES: Regains Compliance with NYSE Listing Standard
------------------------------------------------------------------
Xerium Technologies, Inc., announced Thursday that it received
notification from the New York Stock Exchange that it has regained
full compliance with NYSE standards for continued listing of the
Company's common stock on the exchange.
"We are pleased to have regained full compliance with the NYSE's
listing standards," commented Stephen R. Light, Chairman,
President and Chief Executive Officer. "This notice of compliance
follows on the heels of our recent emergence from our pre-packaged
chapter 11 plan of reorganization and marks an important milestone
for Xerium, as we now put this process behind us and move forward
with pursuing our operating strategy which we believe will lead to
positive results for our stakeholders."
About Xerium Technologies
Based in Raleigh, North Carolina, Xerium Technologies, Inc. (NYSE:
XRM) -- http://www.xerium.com/-- is a leading global manufacturer
and supplier of two types of consumable products used primarily in
the production of paper: clothing and roll covers. The Company,
which operates around the world under a variety of brand names,
utilizes a broad portfolio of patented and proprietary
technologies to provide customers with tailored solutions and
products integral to production, all designed to optimize
performance and reduce operational costs. With 32 manufacturing
facilities in 13 countries around the world, Xerium has
approximately 3,300 employees.
Xerium Technologies and certain subsidiaries filed for Chapter 11
on March 30, 2010 (Bankr. D. Del. Lead Case No. 10-11031). Judge
Kevin J. Carey presides over the cases. John J. Rapisardi, Esq.;
George A. Davis, Esq.; and Sharon J. Richardson, Esq., at
Cadwalader, Wickersham & Taft LLP; and Mark D. Collins, Esq., at
Richards, Layton & Finger, P.A., serve as bankruptcy counsel.
Brian Fox, Michelle Campbell, and Michael Hartley at AlixPartners,
LLC, serve as the Debtors' restructuring advisors. Stephen Ledoux
and Daniel Gilligan at Rothschild Inc. serve as the Debtors'
investment bankers. Garden City Group Inc. is the Debtors' claims
agent. Xerium Technologies disclosed total assets of $693,511,000
and total debts of $813,168,000 in its petition.
Judge Kevin J. Carey of the U.S. Bankruptcy Court for the
District of Delaware confirmed the Prepackaged Chapter 11 Plan of
Reorganization filed by Xerium Technologies, Inc., and its debtor
affiliates on May 12, 2010, after determining that the Plan
satisfies the requirements of Section 1129(a) of the Bankruptcy
Code. On May 25, 2010, the Plan became effective and the Company
and the debtor subsidiaries emerged from Chapter 11.
* * *
The Company's balance sheet at March 31, 2010, showed
$658.5 million in assets and $807.0 million in liabilities, for a
stockholders' deficit of $148.5 million.
XL GROUP: Fitch Affirms Insurer Financial Strength Rating
---------------------------------------------------------
Fitch Ratings affirms the ratings of XL Group Ltd. (a Cayman
subsidiary of XL Group plc, renamed from XL Capital Ltd) and its
property/casualty (re)insurance subsidiaries, including the Issuer
Default Rating for XL at 'BBB+', and the Insurer Financial
Strength rating of its core operating companies at 'A'. The
Rating Outlook has been revised to Stable from Negative.
The Outlook revision to Stable reflects the company's improvement
in capitalization, reduced financial leverage, lower investment
risk and stabilization of its competitive position. Partially
offsetting these positives are anticipated challenges in a
competitive property/casualty market rate environment and the
potential drag from the remaining run-off life business.
XL's capital position has improved with GAAP shareholders' equity
up 64% since year-end 2008 to $10 billion at March 31, 2010,
following a significant 39% decline in 2008. The increase was
driven by improvement in the company's net unrealized loss
investment position to $0.7 billion ($1.4 billion gross) at
March 31, 2010, from $3.4 billion ($4.1 billion gross) at Dec. 31,
2008. Furthermore, XL's insurance company capitalization
improved, with overall operating leverage (net premiums written to
shareholders' equity) of 0.6 times in 2009, compared to 1.0x in
2008.
As a result of the shareholders' equity growth, XL's equity-credit
adjusted debt-to-total capital ratio (including accumulated other
comprehensive income) declined to a reasonable 19.7% at March 31,
2010, down from 30% at year-end 2008, and below Fitch expected
level of under 25%. However, XL's total financing and commitment
ratio at March 31, 2010, remains just slightly above average at
0.8x due to the inclusion of XL's letters of credit in use
($2.8 billion) and remaining financial guarantee ($1.5 billion)
and credit derivative ($0.3 billion) exposures in the TFC ratio.
XL has also demonstrated reduced volatility from its investment
portfolio as the company effectively completed the de-risking and
repositioning of its investment portfolio to one that supports a
focused property/casualty operation. To this end, XL further
reduced its exposure to commercial mortgage-backed securities,
non-agency U.S. residential mortgage-backed securities (RMBS;
including sub-prime, Alt-A, second lien, asset-backed securities
collateralized debt obligations and prime assets) and corporate
portfolio holdings by $4 billion in 2009, through maturities,
paydowns and opportunistic sales, following a $3.5 billion
reduction in 2008, with the company reinvesting in government and
government related holdings, high quality corporates, munis and
agency MBS.
XL's competitive position has stabilized, with net premiums
written up 5% in the first quarter of 2010 (1Q'10) due to targeted
new business growth, particularly in professional, aviation,
marine and middle market lines, improved retentions across all
lines of business to historic mid to upper 80% levels and the
recapture of some of the previously lost business, partially
offset by the continuing weak market environment that has
decreased insured exposures. This follows a 17% net premiums
written drop in 2009, largely driven by strategic decisions to
exit specific lines of business, foreign exchange rate impacts,
the impacts of ratings downgrades and poor market and economic
conditions.
XL's underwriting results remain favorable overall, with core
property/casualty operations posting a GAAP combined ratio of
100.5% in 1Q'10 due to higher catastrophes, compared to 93.6% in
2009 and 94.9% in 2008. Excluding the impact of catastrophes
(14.3 points) and favorable reserve development (6.9 points), XL's
combined ratio for 1Q'10 was 93.1%, down 3.8 points from 1Q'09.
Fitch expects XL to maintain a disciplined underwriting approach
in the overall competitive market and soft rate environment, with
no additional significant charges for reserves, investments, or
run-off business.
Fitch has affirmed these ratings with a Stable Outlook:
XL Group Ltd. (formerly known as XL Capital Ltd)
-- IDR at 'BBB+';
-- $600 million 5.25% senior notes due 2014 at 'BBB';
-- $350 million 6.375% senior notes due 2024 at 'BBB';
-- $325 million 6.25% senior notes due 2027 at 'BBB';
-- $575 million 10.75% equity units at 'BBB';
-- $1,000 million 6.375% series E preferred ordinary shares at
'BB+';
-- $71.9 million 6.102% series C preference ordinary shares at
'BB+'.
XL Capital Finance (Europe) PLC
-- IDR at 'BBB+';
-- $600 million 6.5% guaranteed senior notes due 2012 at 'BBB'.
Stoneheath Re
-- IDR at 'BBB+';
-- $350 million non-cumulative perpetual preferred at 'BB+'.
Fitch also has affirmed at 'A' the IFS ratings of these XL Group
Ltd. (re)insurance subsidiaries with a Stable Rating Outlook:
-- XL Insurance (Bermuda) Ltd;
-- XL Re Ltd;
-- XL Insurance Switzerland;
-- XL Re Latin America Ltd;
-- XL Insurance Company Limited;
-- XL Insurance America, Inc.;
-- XL Reinsurance America Inc.;
-- XL Re Europe Limited;
-- XL Insurance Company of New York, Inc.;
-- XL Specialty Insurance Company;
-- Indian Harbor Insurance Company;
-- Greenwich Insurance Company;
-- XL Select Insurance Company.
* Consumer Bankruptcy Filings up 14% in First Half of 2010
----------------------------------------------------------
U.S. consumer bankruptcy filings totaled 770,117 nationwide during
the first six months of 2010 (Jan. 1-June 30), a 14% increase over
the 675,351 total consumer filings during the same period a year
ago, according to American Bankruptcy Institute.
* Alec Ostrow Joins Becker Glynn as Partner in Bankruptcy Practice
------------------------------------------------------------------
Alec P. Ostrow has joined Becker, Glynn, Melamed & Muffly LLP as a
partner. He will rejoin Chester B. Salomon in leading Becker
Glynn's corporate reorganization, bankruptcy and creditors' rights
practice from Becker Glynn's midtown New York offices.
Previously Ostrow and Salomon were partners at Salomon Green &
Ostrow, P.C., and shareholders at Stevens & Lee P.C. in New York.
Mr. Ostrow has practiced law for 30 years since graduation from
New York University School of Law in 1980. Among his professional
distinctions, since 1999 Mr. Ostrow has been an adjunct professor
at St. John's University School of Law LLM in Bankruptcy Program
and since 2004 he has been a fellow of the American College of
Bankruptcy.
Contact: Robert C. Muffly, Esq.
Becker, Glynn, Melamed & Muffly LLP
299 Park Avenue, New York, NY 10171
E-mail: rmuffly@beckerglynn.com
Tel.: (212) 888-3033
* BOND PRICING -- For Week From June 28 to July 2, 2010
-------------------------------------------------------
Company Coupon Maturity Bid Price
------- ------ -------- ---------
155 E TROPICANA 8.750% 4/1/2012 5.250
ABITIBI-CONS FIN 7.875% 8/1/2009 12.000
AHERN RENTALS 9.250% 8/15/2013 36.875
AMBAC INC 9.375% 8/1/2011 48.250
BANK NEW ENGLAND 8.750% 4/1/1999 12.250
BANK NEW ENGLAND 9.875% 9/15/1999 11.875
BANKUNITED FINL 6.370% 5/17/2012 5.500
BLOCKBUSTER INC 9.000% 9/1/2012 6.350
BOWATER INC 6.500% 6/15/2013 30.000
BOWATER INC 9.500% 10/15/2012 31.500
BRODER BROS CO 11.250% 10/15/2010 88.000
CAPMARK FINL GRP 5.875% 5/10/2012 31.000
COLLINS & AIKMAN 10.750% 12/31/2011 0.010
COLONIAL BANK 6.375% 12/1/2015 0.200
EDDIE BAUER HLDG 5.250% 4/1/2014 5.000
ELEC DATA SYSTEM 3.875% 7/15/2023 89.000
EVERGREEN SOLAR 4.000% 7/15/2013 32.000
FAIRPOINT COMMUN 13.125% 4/1/2018 16.125
FAIRPOINT COMMUN 13.125% 4/2/2018 10.000
FEDDERS NORTH AM 9.875% 3/1/2014 0.877
FINLAY FINE JWLY 8.375% 6/1/2012 1.030
FLEETWOOD ENTERP 14.000% 12/15/2011 15.375
FRIEDE GOLDMAN 4.500% 9/15/2004 0.875
GASCO ENERGY INC 5.500% 10/5/2011 59.750
GENERAL MOTORS 7.125% 7/15/2013 28.957
GENERAL MOTORS 7.700% 4/15/2016 30.500
GENERAL MOTORS 9.450% 11/1/2011 28.500
HAWAIIAN TELCOM 9.750% 5/1/2013 1.875
HAWAIIAN TELCOM 12.500% 5/1/2015 1.400
IDLEAIRE TECH CP 13.000% 12/15/2012 1.000
INDALEX HOLD 11.500% 2/1/2014 2.800
INTL LEASE FIN 5.400% 8/15/2010 96.650
KEYSTONE AUTO OP 9.750% 11/1/2013 40.500
LANDRY'S RESTAUR 9.500% 12/15/2014 84.800
LEHMAN BROS HLDG 0.450% 12/27/2013 20.000
LEHMAN BROS HLDG 1.250% 6/13/2012 19.050
LEHMAN BROS HLDG 1.500% 3/23/2012 20.000
LEHMAN BROS HLDG 4.500% 8/3/2011 18.680
LEHMAN BROS HLDG 4.700% 3/6/2013 18.050
LEHMAN BROS HLDG 4.800% 2/27/2013 18.050
LEHMAN BROS HLDG 4.800% 3/13/2014 19.250
LEHMAN BROS HLDG 5.000% 1/14/2011 19.250
LEHMAN BROS HLDG 5.000% 1/22/2013 18.710
LEHMAN BROS HLDG 5.000% 2/11/2013 18.710
LEHMAN BROS HLDG 5.000% 3/27/2013 18.050
LEHMAN BROS HLDG 5.000% 8/3/2014 18.800
LEHMAN BROS HLDG 5.000% 8/5/2015 18.050
LEHMAN BROS HLDG 5.100% 1/28/2013 17.550
LEHMAN BROS HLDG 5.150% 2/4/2015 18.000
LEHMAN BROS HLDG 5.250% 2/6/2012 20.250
LEHMAN BROS HLDG 5.250% 1/30/2014 18.760
LEHMAN BROS HLDG 5.250% 2/11/2015 17.250
LEHMAN BROS HLDG 5.350% 2/25/2018 18.050
LEHMAN BROS HLDG 5.500% 4/4/2016 19.350
LEHMAN BROS HLDG 5.500% 2/4/2018 18.050
LEHMAN BROS HLDG 5.500% 2/19/2018 18.050
LEHMAN BROS HLDG 5.550% 2/11/2018 18.050
LEHMAN BROS HLDG 5.600% 1/22/2018 18.500
LEHMAN BROS HLDG 5.625% 1/24/2013 20.000
LEHMAN BROS HLDG 5.700% 1/28/2018 18.000
LEHMAN BROS HLDG 5.750% 4/25/2011 18.875
LEHMAN BROS HLDG 5.750% 7/18/2011 19.170
LEHMAN BROS HLDG 5.750% 5/17/2013 19.500
LEHMAN BROS HLDG 5.875% 11/15/2017 18.000
LEHMAN BROS HLDG 6.000% 4/1/2011 21.000
LEHMAN BROS HLDG 6.000% 7/19/2012 19.050
LEHMAN BROS HLDG 6.000% 6/26/2015 16.600
LEHMAN BROS HLDG 6.000% 12/18/2015 16.500
LEHMAN BROS HLDG 6.000% 2/12/2018 17.750
LEHMAN BROS HLDG 6.000% 1/22/2020 18.250
LEHMAN BROS HLDG 6.000% 2/12/2020 16.550
LEHMAN BROS HLDG 6.200% 9/26/2014 19.000
LEHMAN BROS HLDG 6.500% 3/6/2023 17.000
LEHMAN BROS HLDG 6.600% 10/3/2022 16.900
LEHMAN BROS HLDG 6.625% 1/18/2012 19.000
LEHMAN BROS HLDG 6.625% 7/27/2027 17.300
LEHMAN BROS HLDG 6.875% 5/2/2018 20.875
LEHMAN BROS HLDG 7.000% 4/16/2019 19.000
LEHMAN BROS HLDG 7.000% 1/31/2038 17.500
LEHMAN BROS HLDG 7.000% 2/1/2038 16.500
LEHMAN BROS HLDG 7.000% 2/8/2038 17.670
LEHMAN BROS HLDG 7.100% 3/25/2038 18.050
LEHMAN BROS HLDG 7.500% 5/11/2038 0.100
LEHMAN BROS HLDG 7.730% 10/15/2023 19.800
LEHMAN BROS HLDG 7.875% 11/1/2009 18.500
LEHMAN BROS HLDG 8.000% 3/5/2022 17.500
LEHMAN BROS HLDG 8.000% 3/17/2023 19.500
LEHMAN BROS HLDG 8.050% 1/15/2019 18.760
LEHMAN BROS HLDG 8.400% 2/22/2023 17.950
LEHMAN BROS HLDG 8.500% 8/1/2015 18.100
LEHMAN BROS HLDG 8.500% 6/15/2022 18.850
LEHMAN BROS HLDG 8.750% 12/21/2021 17.930
LEHMAN BROS HLDG 8.750% 2/6/2023 17.050
LEHMAN BROS HLDG 8.800% 3/1/2015 19.010
LEHMAN BROS HLDG 8.920% 2/16/2017 16.000
LEHMAN BROS HLDG 9.500% 12/28/2022 19.000
LEHMAN BROS HLDG 9.500% 1/30/2023 17.250
LEHMAN BROS HLDG 9.500% 2/27/2023 17.500
LEHMAN BROS HLDG 10.375% 5/24/2024 18.000
LEHMAN BROS HLDG 11.000% 6/22/2022 17.760
LEHMAN BROS HLDG 11.000% 7/18/2022 17.500
LEHMAN BROS HLDG 11.000% 8/29/2022 19.000
LEHMAN BROS HLDG 11.000% 3/17/2028 18.500
LEINER HEALTH 11.000% 6/1/2012 8.750
MAGNA ENTERTAINM 7.250% 12/15/2009 9.000
MAGNA ENTERTAINM 8.550% 6/15/2010 15.250
MERRILL LYNCH 3.470% 3/9/2011 99.000
METALDYNE CORP 11.000% 6/15/2012 1.600
NEFF CORP 10.000% 6/1/2015 0.250
NEWPAGE CORP 10.000% 5/1/2012 53.938
NEWPAGE CORP 12.000% 5/1/2013 29.795
NORTH ATL TRADNG 9.250% 3/1/2012 52.000
PALM HARBOR 3.250% 5/15/2024 73.500
POPE & TALBOT 8.375% 6/1/2013 0.500
RASER TECH INC 8.000% 4/1/2013 38.000
SPHERIS INC 11.000% 12/15/2012 27.500
STATION CASINOS 6.000% 4/1/2012 6.000
STATION CASINOS 7.750% 8/15/2016 6.000
STX-CALL07/10 5.750% 3/1/2012 97.000
THORNBURG MTG 8.000% 5/15/2013 2.750
TIMES MIRROR CO 7.250% 3/1/2013 25.000
TOUSA INC 7.500% 1/15/2015 3.250
TOUSA INC 10.375% 7/1/2012 4.750
TRANS-LUX CORP 8.250% 3/1/2012 7.673
TRIBUNE CO 5.250% 8/15/2015 26.000
TRICO MARINE 3.000% 1/15/2027 13.313
TRICO MARINE SER 8.125% 2/1/2013 47.000
TRUMP ENTERTNMNT 8.500% 6/1/2015 0.500
VERASUN ENERGY 9.375% 6/1/2017 6.625
VERENIUM CORP 5.500% 4/1/2027 33.000
VIRGIN RIVER CAS 9.000% 1/15/2012 45.500
WASH MUT BANK NV 5.950% 5/20/2013 0.250
WASH MUT BANK NV 6.750% 5/20/2036 0.500
WCI COMMUNITIES 7.875% 10/1/2013 0.700
WCI COMMUNITIES 9.125% 5/1/2012 1.000
WERNER HOLDINGS 10.000% 11/15/2007 7.777
YELLOW CORP 5.000% 8/8/2023 85.000
*********
Monday's edition of the TCR delivers a list of indicative prices
for bond issues that reportedly trade well below par. Prices are
obtained by TCR editors from a variety of outside sources during
the prior week we think are reliable. Those sources may not,
however, be complete or accurate. The Monday Bond Pricing table
is compiled on the Friday prior to publication. Prices reported
are not intended to reflect actual trades. Prices for actual
trades are probably different. Our objective is to share
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Each Tuesday edition of the TCR contains a list of companies with
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The Sunday TCR delivers securitization rating news from the week
then-ending.
For copies of court documents filed in the District of Delaware,
please contact Vito at Parcels, Inc., at 302-658-9911. For
bankruptcy documents filed in cases pending outside the District
of Delaware, contact Ken Troubh at Nationwide Research &
Consulting at 207/791-2852.
*********
S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter is a daily newsletter co-published
by Bankruptcy Creditors" Service, Inc., Fairless Hills,
Pennsylvania, USA, and Beard Group, Inc., Frederick, Maryland,
USA. Marites Claro, Joy Agravante, Rousel Elaine Tumanda, Howard
C. Tolentino, Joseph Medel C. Martirez, Denise Marie Varquez,
Philline Reluya, Ronald C. Sy, Joel Anthony G. Lopez, Cecil R.
Villacampa, Sheryl Joy P. Olano, Carlo Fernandez, Christopher G.
Patalinghug, and Peter A. Chapman, Editors.
Copyright 2010. All rights reserved. ISSN: 1520-9474.
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not guaranteed.
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are $25 each. For subscription information, contact Christopher
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