/raid1/www/Hosts/bankrupt/TCR_Public/100818.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
Wednesday, August 18, 2010, Vol. 14, No. 228
Headlines
207 REDWOOD: Section 341(a) Meeting Scheduled for Sept. 15
207 REDWOOD: Taps Logan Yumkas as Bankruptcy Counsel
317 WEST: Files for Chapter 11 Protection
556 HOLDING: Section 341(a) Meeting Scheduled for Sept. 21
A AND M CARPET: Emerging from Chapter 11 as Vendors Back Plan
ABITIBIBOWATER INC: Expert Says Fair Market Value at $4.9-Bil.
ABITIBIBOWATER INC: Sale of Lufkin Property to Verdant Approved
ALLY FINANCIAL: Reaches New Deal With Chrysler Group
AMERICAN INT'L: Fortress Sale Price Said to Be $130 Million
APEX DIGITAL: Files Voluntary Chapter 11 to Reorganize Business
B&G FOODS: S&P Puts 'CCC+' Preferred Stock Rating to $600MM Shelf
BELAL ALSHAWE: Case Summary & 20 Largest Unsecured Creditors
BH S&B HOLDINGS: Tax Authorities Had to File Admin. Claims
CABI DOWNTOWN: Proposes Settlement with Yates & Sons
CABI DOWNTOWN: Has Green Light to Begin Soliciting Plan Votes
CAPMARK FINANCIAL: Committee Wants Payments to Lenders Halted
CAPMARK FINANCIAL: Committee Wants to Pursue Avoidance Actions
CAPMARK FINANCIAL: Proposes October 25 as Protech Bar Date
CAPRIUS INC: Posts $441,000 Net Loss in March 31 Quarter
CARIBBEAN PETROLEUM: Seeks Chapter 11 After Explosion
CARROLL PROPERTIES: Files for Chapter 11 Bankruptcy Protection
CATHOLIC CHURCH: Abuse Lawsuit Against Fairbanks Priest Dismissed
CATHOLIC CHURCH: Fairbanks File Post-Conf. Report for March 2010
CATHOLIC CHURCH: Wilmington Appeals Ruling on Committee Suit
CENTAUR LLC: August 25 Hearing on Sale of Equity Interests
CENTERVILLE PARTNERS: Files for Bankruptcy in Utah
CENTRAL PARKING: Extends & Amends Debt Facilities
CHEMTURA CORP: Bingham McCutchen Represents BKK, et al.
CHEMTURA CORP: Canadian Unit Intends to Pay Unimpaired Claims
CIELO TOWER: Voluntary Chapter 11 Case Summary
CLEMENT CARINALLI: Creditors to Vote on Restructuring Plan
DBSI INC: May Begin Soliciting Votes for Liquidating Plan
DENBURY RESOURCES: S&P Affirms 'BB' Rating on Senior Debt
DIJAN INC: Files for Chapter 11 Bankruptcy Protection
DUTCH GOLD: Files Amended 10-Q for Q1 2010; Reports $3.2MM Loss
DUTCH GOLD: Posts $540,600 Net Loss in Q2 Ended June 30
EASTON-BELL SPORTS: Posts $4.96-Mil. Net Income in July 3 Qtr.
ELLICOTT SPRINGS: Amends List of Largest Unsecured Creditors
EMAK WORLDWIDE: Amends List of Largest Unsecured Creditors
EMAK WORLDWIDE: Section 341(a) Meeting Scheduled for Sept. 30
EMPIRE RESORTS: Posts $8.59 Million Net Loss for June 30 Quarter
EVERGREEN INT'L FUND: Liquidation Completed August 16
FAIRFAX CROSSING: Files Schedules of Assets and Liabilities
FISHERMAN'S WHARF: Amends Schedules of Assets and Liabilities
FISHERMAN'S WHARF: Plan Confirmation Hearing Set for September 20
GENTA INC: June 30 Balance Sheet Upside-Down by $127.4-Mil.
GEOEYE INC: Satellite Contract Won't Affect Moody's Ratings
GRACE SCARPA: Case Summary & 20 Largest Unsecured Creditors
GRAY TELEVISION: Posts $534,000 Net Income for June 30 Quarter
HILL TOP: Files Schedules of Assets and Liabilities
HILL TOP: Taps The Law Offices of William B. Kingman as Counsel
HUDAK MECHANICAL: Case Summary & 9 Largest Unsecured Creditors
HUDAK'S ASBESTOS: Case Summary & 20 Largest Unsecured Creditors
HUDAK'S CONSTRUCTION: Case Summary & Creditors List
INDEPENDENCE TAX: Posts $473,364 Net Loss for June 30 Quarter
INDEPENDENCE TAX, II: Posts $751,129 Net Loss for June 30 Quarter
INGRAM MICRO: Moody's Assigns 'Ba2' Rating on Senior Securities
INT'L COAL GROUP: Reports $4.48MM Net Income for June 30 Qtr
IT HOLDING: Files Chapter 15 Petition in Manhattan Court
IT HOLDING: Chapter 15 Case Summary
JOE DENNING: Case Summary & 20 Largest Unsecured Creditors
KEY ENERGY: S&P Affirms Corporate Credit Rating at 'BB-'
KRISPY KREME: Shares Segment Financial and Operating Metrics
LAYNE GRUENEWALD: Case Summary & 25 Largest Unsecured Creditors
LEO WILLS, III: Case Summary & 7 Largest Unsecured Creditors
LEVI STRAUSS: Jaime Szulc Resigns as Chief Marketing Officer
LODGE AT NEW TAMPA: Case Summary & 3 Largest Unsecured Creditors
LPATH INC: Posts $1.31 Million Net Loss for June 30 Quarter
LUCRE INC: Carrier's Admin. Claim Limited to Reasonable Rate
MEXICANA AIRLINES: Union Asks Gov't to Push for More Days of Talks
MEXICANA AIRLINES: Airport Operator Suspends Passenger Fee
MILESTONE SCIENTIFIC: Swings to $180,360 Net Income in Q2 2010
MOLECULAR INSIGHT: Receives Seventh Extension of Waiver Agreement
NATHAN LINDER: Case Summary & 6 Largest Unsecured Creditors
NEWS-JOURNAL CORP: PBGC Assumes Responsibility for Pension Plan
NEXMED INC: Posts $4.3 Million Net Loss in Q2 Ended June 30
NIGEL HOLMAN: Case Summary & 20 Largest Unsecured Creditors
NORTHWEST PIPE: Gets Nasdaq Notice on Late Financial Filing
NRG ENERGY: Fitch Affirms B+ Ratings After Blackstone Deal
ONE ACCORD: Section 341(a) Meeting Scheduled for Sept. 1
ONE ACCORD: Taps Crowley Liberatore as Bankruptcy Counsel
OPTI CANADA: Inks Agreement To Issue & Sell US$100 Million Notes
OSAGE EXPLORATION: Lowers Net Loss to $296,300 in Q2 2010
PALMAS COUNTRY: Section 341(a) Meeting Scheduled for Sept. 13
PALMAS COUNTRY: Has Stipulation on Cash Collateral Use
PALMAS COUNTRY: Taps Alexis Fuentes-Hernandez as Bankr. Counsel
PALMAS COUNTRY: Wants to Sell Assets as Payment to Tourism Dev't
PETER STROMBERG: Case Summary & 20 Largest Unsecured Creditors
PHOENIX FOOTWEAR: Posts $201,000 Net Income for June 30 Quarter
PHYSICAL PROPERTY: Posts HK138,000 Net Loss in Q2 Ended June 30
POINT BLANK: Wants Examiner Requests Heard September 1
PREFERRED VOICE: Posts $403,055 Net Income for June 30 Quarter
RADIENT PHARMACEUTICALS: Reports on Exchange Pact Signed Last Year
RAISSI REAL ESTATE: Files Schedules of Assets and Debts
RANJIT SINGH: Case Summary & 13 Largest Unsecured Creditors
RESCARE INC: Onex Corporation Proposal Cues Moody's Rating Review
RES-CARE INC: S&P Puts 'BB-' Rating on CreditWatch Negative
SAINT VINCENTS: NY City Council Speaker Rips Executives
SALINAS INVESTMENTS: Files Schedules of Assets and Liabilities
SAMSONITE COMPANY: Case Closed, to Satisfy Unliquidated Claims
SK HAND: Files Schedules of Assets and Liabilities
SMART ONLINE: Posts $488,000 Net Loss for June 30 Quarter
SUNESIS PHARMA: Posts $4.8 Milllion Net Loss for June 30 Quarter
SYNERGY HEMATOLOGY: Patient Care Ombudsman Can Hire Counsel
TACO DEL MAR: May Sell Assets at September Auction
TELECONNECT INC: Sales Drop 99.7% in Second Quarter of 2010
TEMBEC INDUSTRIES: Pushes Debt Maturities to 2018
TRENTON LAND: Files Schedules of Assets and Liabilities
TREY RESOURCES: Posts $789,416 Net Loss for June 30 Quarter
TRIAD GUARANTY: Earns $79.1 Million in Q2 Ended June 30
TRUVO USA: Has Final OK to Access Senior Lenders' Cash Collateral
TRUVO USA: Files Schedules of Assets and Liabilities
TYCOON DEVELOPMENT: Seeks Use of Cash as JPMorgan Objects
UNIVERSAL BUILDING: Creditors' Committee Appointed
US ENERGY: Plan Confirmation Hearing Scheduled for October 5
VEBLEN EAST: Creditors Committee Tapped; Trustee Selects Counsel
VIEWCREST INVESTMENTS: Chapter 11 Reorganization Case Dismissed
VIKING SYSTEMS: Incurs $450,850 Net Loss for June 30 Quarter
VIKING SYSTEMS: Nets $1.5MM from Shares Sale to Dutchess
VISTEON CORP: Reaches Settlement With Term Loan Lenders
VISTEON CORP: Ready for Plan Confirmation Hearing on August 31
VISTEON CORP: Receives Plan Objections From Various Parties
VISTEON CORP: Reports $201 Million Net Loss in Second Quarter
VITAFREZE FROZEN: Aims Chapter 11 Emergence Early Next Year
WATCH ME: Case Summary & 5 Largest Unsecured Creditors
WAVE SYSTEMS: Incurs $966,900 Net Loss for June 30 Quarter
WECK CORP: Files for Chapter 11 in Manhattan
* Bankruptcy Filings Up 20% in the 12-Month Ended June 30
* Moody's Liquidity-Stress Index at 5.7% at End of July
* 2010's Bank Closings Reach 110 as Another Illinois Bank Closed
* Gov. Christie Has Plan to Rescue Atlantic City Casinos
* Upcoming Meetings, Conferences and Seminars
********
207 REDWOOD: Section 341(a) Meeting Scheduled for Sept. 15
----------------------------------------------------------
The U.S. Trustee for Region 4 will convene a meeting of 207
Redwood LLC's creditors on September 15, 2010, at 11:00 a.m. The
meeting will be held at 101 W. Lombard Street, Garmatz Courthouse,
2nd Floor, #2650, Baltimore, MD 21201.
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.
Columbia, Maryland-based 207 Redwood LLC filed for Chapter 11
protection on August 6, 2010 (Bankr. D. Md. Case No. 10-27968).
James A. Vidmar, Jr., Esq., at Logan, Yumkas, Vidmar & Sweeney
LLC, assists the Debtor in its restructuring effort. The Debtor
estimated its assets and debts at $10 million to $50 million as of
the Petition Date.
207 REDWOOD: Taps Logan Yumkas as Bankruptcy Counsel
----------------------------------------------------
207 Redwood LLC asks for authorization from the U.S. Bankruptcy
Court for the District of Maryland to employ Logan, Yumkas, Vidmar
& Sweeney, LLC, as bankruptcy counsel.
LYVS will, among other things:
(a) advise the Debtor concerning, and assist in the
negotiation and documentation of, financing agreements,
debt restructurings, cash collateral arrangements and
related transactions;
(b) review the nature and validity of liens asserted against
the property of the Debtor and advise the Debtor
concerning the enforceability of the liens;
(c) advise the Debtor concerning the actions that it might
take to collect and to recover property for the benefit
of the Debtor's estate; and
(d) prepare on behalf of the Debtor all necessary and
appropriate applications, motions, pleadings, draft
orders, notices, schedules and other documents, and
review all financial and other reports to be filed in
the Debtor's Chapter 11 case.
LYVS will be paid based on the hourly rates of its personnel:
Partners $300-$375
Associates $225-$275
Paralegals $125-$150
James A. Vidmar, Esq., a partner at LYVS, assures the Court that
the firm is "disinterested" as that term is defined in Section
101(14) of the Bankruptcy Code.
Columbia, Maryland-based 207 Redwood LLC filed for Chapter 11
protection on August 6, 2010 (Bankr. D. Md. Case No. 10-27968).
The Debtor estimated its assets and debts at $10 million to
$50 million as of the Petition Date.
317 WEST: Files for Chapter 11 Protection
-----------------------------------------
317 West 35th Street Realty LLC filed for bankruptcy protection
August 12 in Manhattan (Bankr. S.D.N.Y. Case No. 10-14324).
Affiliate 319 West 35th Street Realty LLC also filed (Bankr.
S.D.N.Y. Case No. 10-14325).
The two entities each estimated assets and liabilities of
$1 million to $10 million. Both of the companies listed as their
largest unsecured creditor Florida Estates, of Salford, England,
holding a claim of $4.375 million arising from a loan.
556 HOLDING: Section 341(a) Meeting Scheduled for Sept. 21
----------------------------------------------------------
The U.S. Trustee for Region 2 will convene a meeting of 556
Holding LLC's creditors on September 21, 2010, at 3:00 p.m. The
meeting will be held at Office of the United States Trustee, 80
Broad Street, Fourth Floor, New York, NY 10004-1408.
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.
New York-based 556 Holding LLC filed for Chapter 11 bankruptcy
protection on August 6, 2010 (Bankr. S.D.N.Y. Case No. 10-14267).
Richard Engman, Esq., at Jones Day, assists the Debtor in its
restructuring effort. The Debtor estimated its assets and debts
at $10 million to $50 million.
An affiliate, KDMJ Realty, Inc., filed a separate Chapter 11
petition on August 6, 2010 (Bankr. S.D.N.Y. Case No. 10-14268).
A AND M CARPET: Emerging from Chapter 11 as Vendors Back Plan
-------------------------------------------------------------
Fresno Business Journal reported that A and M Carpet Inc.
announced August 13 it is emerging from Chapter 11 reorganization.
"This reorganization was a right-sizing measure during difficult
economic times that was intended to protect our family legacy and
our customers," said Lee Horwitz, president of A and M Flooring
America, in a statement, according to Business Journal.
Mr. Horwitz added, "We are extremely grateful to our
reorganization team, our employees who stuck with us, our vendors
who were patient and most importantly our customers who continued
to support us."
Riley Walter, attorney for A and M, said, "This is a good day for
A&M and its vendors and customers. The nearly unanimous vote in
favor of the plan evidences confidence and support of Lee Horwitz
and his team. Now the company can go forward outside of the
chapter 11 process to resume normal business practices."
Tim Sheehan at The Fresno Bee reports that Company's vendors
overwhelmingly voted in favor the reorganization plan.
About A and M Carpet Inc.
Fresno-California based A&M Flooring America was founded in 1940
by brothers Alex and Morris Horwitz. Lee Horwitz serves as
president to A&M Flooring which is now second generation family
owned and operated. The Horwitz family also owns and operates the
Big Bob's New & Used Carpet franchise on Blackstone and Dakota
avenues.
A and M Carpet Inc., doing business as A and M Flooring America
and Big Bob's New and Used Carpet, filed for Chapter 11 on Oct. 1,
2009 (Bankr. E.D. Calif. Case No. 09-19497). In its schedules,
the Company disclosed assets of $1.3 million and $3.4 million in
debts as of the Petition Date. Riley C. Walter, Esq., in Fresno,
California, serves as counsel to the Debtor.
ABITIBIBOWATER INC: Expert Says Fair Market Value at $4.9-Bil.
--------------------------------------------------------------
John Tittle, Jr., of NHB Advisors, Inc., informed the U.S.
Bankruptcy Court in an August 3, 2010 filing that at the request
of certain shareholders of the Debtors, he rendered his opinion as
of June 30, 2010, with respect to:
-- the fair market value of the Debtors' assets;
-- the value of non-equity claims against the fair market
value of assets; and
-- the indicative value to Shareholders after applying the
non-equity claims to the fair market value of assets and to
express an opinion in an expert report pursuant to Rule 26
of the Federal Rules of Civil Procedure.
Upon the completion of an independent and objective valuation of
the fair market value for the assets of the Debtors as of
June 30, 2010, Mr. Title and his firm concluded that:
1. The Fair Market Value of the Debtors' assets before
consideration of other sources of value is $4.338 billion;
2. Other value sources potentially represent up to
$576 million and increase the Fair Market Value of the
Debtors' assets to $4.915 billion; and
3. The estimated Liquidation Value based on NHB's review of
the most recent financial statements and with consideration
that the Debtors' account, Investment in Subsidiaries, may
represent the ability to pay claims and/or interests at the
individual debtor level, is $9.924 billion.
Mr. Tittle documented his findings in an expert report dated
July 2, 2010, a full-text copy of which is available for free at:
http://bankrupt.com/misc/ABH_ExpertRpt_JTittle.pdf
Mr. Tittle's declaration was filed in support of the Equity
Committee Appointment Motion.
Under the Expert Report, however, NHB stated that it is unable at
this time to determine how claims related to each individual
Debtor and how value will be applied to each Debtor to determine
recovery of each claim class.
NHB noted it is also unable to quantify the implied Equity Value,
however, indications are that there could be some recovery to the
Class of Common Stock Interests for certain individual Debtors.
P. Shah Writes Court
Peter I. Shah, an owner of 138,500 shares of AbitibiBowater stock,
wrote the Court on August 6, 2010, urging Judge Carey to
reconsider the request for the formation of an official committee
of equity holders.
Mr. Shah asserted that it is essential to preserve the value of
Current equity holders.
He also wanted to draw the Court's attention to one asset the
Debtors hold -- timber rights and other rights to 43 million
acres of forestland that is 100% certified to independent,
internationally recognized, sustainable forest management
standards.
Lease to the mentioned forestland is worth more than $32 billion
dollars, according to Mr. Shah, which is five times more than the
total outstanding debt of the Debtors.
"This is a very valuable and unique asset. It is heart breaking
then Debtor continues to hide VALUE and down play the role of
such a valuable asset in their operations," Mr. Shah said.
* * *
In an order dated August 13, Judge Kevin Carey denied the request
for the appointment of an official equity committee for reasons
stated on the Court's record.
About AbitibiBowater
AbitibiBowater (OTC: ABWTQ) produces 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. The Company also recycles old newspapers and
magazines.
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). 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). Pauline K. Morgan,
Esq., and Sean T. Greecher, Esq., at Young, Conaway, Stargatt &
Taylor, in Wilmington, represent the Chapter 15 Debtors.
U.S. Bankruptcy Judge Kevin Carey handles the Chapter 11 cases of
AbitibiBowater Inc. and its U.S. affiliates and the Chapter 15
case of ACI, et al.
As of Sept. 30, 2008, the Company had $9,937,000,000 in total
assets and $8,783,000,000 in total debts.
Bankruptcy Creditors' Service, Inc., publishes AbitibiBowater
Bankruptcy News. The newsletter provides gavel-to-gavel coverage
of the Chapter 11 proceedings and parallel proceedings under the
Companies' Creditors Arrangement Act in Canada undertaken by
Abitibibowater Inc. and its various affiliates.
(http://bankrupt.com/newsstand/or 215/945-7000).
ABITIBIBOWATER INC: Sale of Lufkin Property to Verdant Approved
---------------------------------------------------------------
U.S. Bankruptcy Judge Kevin Carey authorized AbibiBowater Inc. and
its units to sell assets owned by Abitibi-Consolidated Corporation
associated to a paper mill in Lufkin, Angelina County, Texas to
Verdant Industries, LLC, for $11,000,000.
The Debtors conducted an auction for the sale of the Lufkin
Property and Verdant's offer, as embodied in a Purchase Sale
Agreement dated August 3, 2010, is deemed the highest and best
offer received by the Debtors.
The Debtors are permitted to consummate and perform all of their
obligations under the Executed Purchase Sale Agreement necessary
to affectuate the sale transaction.
The Debtors are also authorized to assume and assign certain
contracts and unexpired leases, along with certain furniture and
equipment, in relation to the sale transaction. After the
payment of the Cure Amounts, if any, with respect to the
Transferred Contracts, the Debtors are not and will not be in
default of any obligations under the contracts.
The payment of the broker's commission out of the proceeds of the
sale is also approved.
The Debtors are also directed to timely pay Reliant Energy Retail
Services LLC for all postpetition utility service provided
pursuant to the prepetition executory contract by and between the
Debtors and Reliant, pursuant to which Reliant provides utility
services to the Lufkin Property until the Reliant Contract is
assumed and assigned to the Purchaser.
Within two business days after closing the Sale, the Debtors will
deposit the net cash proceeds of the Sale into a Wells Fargo bank
account in the name of the Debtors to be assigned by Wells Fargo
Bank, N.A., as agent under a Credit Agreement dated April 2008
among Abitibi-Consolidated Company of Canada, Abitibi-
Consolidated Inc. and certain term lenders. The Debtors will not
be permitted to withdraw all or any portion of the Net Sale
Proceeds from the designated account other than in accordance
with the terms and conditions of the Sale Order.
Full-text copies of the Verdant PSA and related exhibits are
available for free at:
http://bankrupt.com/misc/ABH_VerdantPSA.pdf
http://bankrupt.com/misc/ABH_VerdantPSA_exhibits.pdf
About AbitibiBowater
AbitibiBowater (OTC: ABWTQ) produces 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. The Company also recycles old newspapers and
magazines.
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). 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). Pauline K. Morgan,
Esq., and Sean T. Greecher, Esq., at Young, Conaway, Stargatt &
Taylor, in Wilmington, represent the Chapter 15 Debtors.
U.S. Bankruptcy Judge Kevin Carey handles the Chapter 11 cases of
AbitibiBowater Inc. and its U.S. affiliates and the Chapter 15
case of ACI, et al.
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).
ALLY FINANCIAL: Reaches New Deal With Chrysler Group
----------------------------------------------------
Ally Financial Inc. entered on April 30, 2009, into a legally
binding Master Auto Finance Agreement Term Sheet with Chrysler,
pursuant to which Ally has provided certain retail and wholesale
financing for the Chrysler dealer network, as part of Chrysler's
proposed industrial alliance with Fiat S.p.A. and its
restructuring with the support of the U.S. Department of the
Treasury
On August 6, 2010, Ally and Chrysler Group LLC entered into a
definitive Auto Finance Operating Agreement, as contemplated by
the Term Sheet, which replaces and supersedes the Term Sheet.
The financial services to be rendered by Ally pursuant to the
Agreement will be offered for all brands distributed through the
Chrysler dealer network in the United States, Canada, and Mexico,
along with other international markets upon the mutual agreement
of the parties.
Ally will provide dealer financing and services and retail
financing to Chrysler dealers and customers, in accordance with
Ally's credit policies and decisions. Under the Agreement,
Chrysler will provide Ally with certain privileges, including the
exclusive use of Ally for designated minimum threshold percentages
of certain of Chrysler's retail financing rate incentive programs.
The Agreement extends through April 30, 2013, with automatic one-
year renewals unless either Ally or Chrysler decides not to renew.
About Ally Financial
Ally Financial Inc., formerly GMAC Inc. -- http://www.ally.com/--
is one of the world's largest automotive financial services
companies. The company offers a full suite of automotive
financing products and services in key markets around the world.
Ally's other business units include mortgage operations and
commercial finance, and the company's subsidiary, Ally Bank,
offers online retail banking products. With more than
$176 billion in assets as of June 30, 2010, Ally operates as a
bank holding company.
GMAC obtained a $17 billion bailout from the U.S. government in
exchange for a 56.3% stake. Private equity firm Cerberus Capital
Management LP keeps 14.9%, while General Motors Co. owns 6.7%.
The Company has tapped Goldman Sachs Group Inc. and Citigroup Inc.
to advise on a range of issues, including strategic alternatives
for the mortgage business and repayment of taxpayer funds.
Ally Financial carries "C" short term issuer credit ratings, and
"B" long term issuer credit ratings, all with stable outlook, from
Standard & Poor's. It has a "B3" issuer rating, with stable
outlook, from Moody's. It has a "B" issuer default rating, with
positive outlook, from Fitch.
According to the Troubled Company Reporter on Aug. 10, 2010,
DBRS has commented that the ratings of Ally Financial Inc. and
certain related subsidiaries, including its Issuer & Long-Term
Debt rating of BB (low), are unaffected by the Company's
announcement of 2Q10 results. The trend on all ratings is Stable.
AMERICAN INT'L: Fortress Sale Price Said to Be $130 Million
-----------------------------------------------------------
American International Group Inc. agreed to sell its consumer
lender for less than 1% of the unit's $20 billion in assets to
avoid the possibility that the business would sap U.S. bailout
funds, Bloomberg News reported, citing three people with knowledge
of the transaction.
Fortress Investment Group LLC will pay about $130 million for an
80% stake of American General Finance Inc., Bloomberg cited the
people, who declined to be identified because deal terms aren't
public.
AIG will retain 20% of Fortress. Divesting the lender and its $17
billion in debt removes the risk that the U.S. would have to pump
more funds to maintain the parent's credit rating, said two of the
people, according to the report.
The Troubled Company Reporter on August 13, 2010, ran a story on
the AGF sale. AIG and Fortress issued a joint statement but did
not disclose the terms of the transaction.
The Wall Street Journal's Erik Holm and Serena Ng, citing people
familiar with the matter, said Fortress, through its funds, paid
less than $200 million for the AGF stake.
The transaction is expected to close by the end of the first
quarter of 2011 subject to regulatory approvals and customary
closing conditions.
The Wall Street Journal said AIG recently valued its AGF
investment at $2.4 billion.
AIG said in a Form 8-K filing it expects to meet the criteria for
"held-for-sale" accounting with respect to AGF and recognize a
pre-tax loss of approximately $1.9 billion in the third quarter of
2010.
About Fortress
Fortress Investment Group -- http://www.fortress.com/-- is a
global investment manager with approximately $41.7 billion in
assets under management as of June 30, 2010. Fortress offers
alternative and traditional investment products and was founded in
1998.
About American General Finance
Based in Evansville, Indiana, American General Finance --
http://www.agfinance.com/-- provides consumer credit. AGF
finances mortgages, secured and unsecured personal loans and
secured retail sales finance products. In addition to its lending
activities, AGF offers credit and non-credit insurance. AGF has
over one million customers and originates loans through its more
than 1,100 branches located across the U.S., Puerto Rico and the
Virgin Islands.
About AIG
American International Group, Inc. -- http://www.aig.com/-- is an
international insurance organization with operations in more than
130 countries and jurisdictions. AIG companies serve commercial,
institutional and individual customers through one of the most
extensive worldwide property-casualty networks of any insurer. In
addition, AIG companies are leading providers of life insurance
and retirement services around the world. AIG common stock is
listed on the New York Stock Exchange, as well as the stock
exchanges in Ireland and Tokyo.
In September 2008, AIG experienced a liquidity crunch when its
credit ratings were downgraded below "AA" levels by Standard &
Poor's, Moody's Investors Service and Fitch Ratings. AIG almost
collapsed under the weight of bad bets it made insuring mortgage-
backed securities. The Company, however, was bailed out by the
Federal Reserve, but even after an initial infusion of
$85 billion, losses continued to grow. The later rescue packages
brought the total to $182 billion, making it the biggest federal
bailout in U.S. history.
AIG has been working to protect and enhance the value of its key
businesses, execute an orderly asset disposition plan, and
position itself for the future. AIG has sold a number of its
subsidiaries and other assets to pay down loans received from the
U.S. government, and continues to seek buyers of its assets.
APEX DIGITAL: Files Voluntary Chapter 11 to Reorganize Business
---------------------------------------------------------------
Apex Digital, Inc. has filed a voluntary petition for
reorganization under Chapter 11 of the U.S. Bankruptcy Code.
Apex Digital Inc. will pursue approval of a restructuring plan
that will modify the Company's business model to enable it to
expand its consulting business by leveraging its global business
connections and focusing on growing its green energy lighting
products line.
Apex will continue providing its business partners with the
highest level of service and attention going forward to ensure
that there will be no disruption to existing, or future, business
and any pending orders. The trademark "Apex Digital" is owned and
licensed by independent third parties not affected by the Chapter
11 petition. To facilitate a seamless transition for its
customers and vendors, Apex is working with the new licensee and
intends to continue providing customer support and warranty
service for all Apex Digital products in the U.S. without
interruption. The company said that it has necessary working
capital to operate its business normally under the jurisdiction of
the Bankruptcy Court.
"We are fully committed to supporting existing U.S. customers of
televisions and other products sold under the Apex Digital brand,"
said Mr. David Ji, President and CEO of Apex Digital Inc. "This
restructuring plan allows Apex to grow its business in a new
direction capitalizing on the increasing demand for green energy.
This is an area where we have a proven track record and a number
of new products under development."
About Apex Digital
Founded in 1997 and headquartered in Walnut, CA, Apex Digital Inc.
is one of the country's leading providers and marketers of
consumer electronics, including high-definition LCD televisions,
home entertainment media devices, solar powered lights and digital
set top boxes.
B&G FOODS: S&P Puts 'CCC+' Preferred Stock Rating to $600MM Shelf
-----------------------------------------------------------------
Standard & Poor's Ratings Services said it assigned its
preliminary 'BB' senior secured debt rating, 'B+' senior unsecured
debt rating, preliminary 'B-' subordinated debt rating, and
preliminary 'CCC+' preferred stock rating to the $600 million
shelf filed by Parsippany, N.J.-based B&G Foods Inc. (B+/Stable/
--) on Aug. 13, 2010, pursuant to Rule 415 under the securities
act of 1933. The company may sell a combination of common stock,
preferred stock, debt securities, warrants, or units. S&P expects
net proceeds to be used for general corporate purposes, which may
include reducing or refinancing S&P's outstanding indebtedness,
increasing working capital, or financing acquisitions and capital
expenditures. At the same time S&P withdrew its preliminary
ratings on the company's previous shelf filing dated July 2, 2009.
The ratings on B&G Foods Inc. reflect the company's participation
in the highly competitive, yet somewhat recession resistant,
packaged foods industry. Additional rating factors include the
company's history of debt-financed acquisitions, as well as B&G's
generally favorable operating margins. As of July 3, 2010, B&G
had about $525 million of debt outstanding. The company is a
manufacturer, marketer, and distributor of a diversified portfolio
of food products, including branded hot cereal, maple syrup,
pickles, peppers, fruit spread, Mexican ingredients, and other
specialty food products.
Ratings List
B&G Foods Inc.
Corporate credit rating B+/Stable/--
Assigned Ratings
B&G Foods Inc.'s $600 mil shelf
Senior secured debt rating BB (preliminary)
Senior unsecured debt rating B+ (preliminary)
Subordinated debt rating B- (preliminary)
Preferred stock rating CCC+ (preliminary)
BELAL ALSHAWE: Case Summary & 20 Largest Unsecured Creditors
------------------------------------------------------------
Debtor: Belal Ahmad Alshawe
843 Berkeley Street
Santa Monica, CA 90403
Bankruptcy Case No.: 10-44103
Chapter 11 Petition Date: August 13, 2010
Court: U.S. Bankruptcy Court
Central District of California (Los Angeles)
Judge: Sheri Bluebond
Debtor's Counsel: Michael Jay Berger, Esq.
9454 Wilshire Boulevard, 6th Floor
Beverly Hills, CA 90212-2929
Tel: (310) 271-6223
Fax: (310) 271-9805
E-mail: michael.berger@bankruptcypower.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
A list of the Debtor's 20 largest unsecured creditors
filed together with the petition is available for free
at http://bankrupt.com/misc/cacb10-44103.pdf
BH S&B HOLDINGS: Tax Authorities Had to File Admin. Claims
----------------------------------------------------------
WestLaw reports that the abandonment of some, if not all, of the
personal property in the Chapter 11 debtors' clothing stores
subject to ad valorem taxes within 15 days of the tax liens
attaching was reasonable. Therefore, the local Texas taxing
authorities had to file requests for administrative expenses to
obtain the payment of the ad valorem taxes asserted in their tax
claims to the extent that the taxes were on property abandoned
pursuant to the abandonment order. In re BH S & B Holdings LLC, -
-- B.R. ----, 2010 WL 2925823 (Bankr. S.D.N.Y.) (Glenn, J.).
A copy of the Honorable Martin Glenn's Memorandum Opinion dated
July 27, 2010, is available at:
http://www.leagle.com/unsecure/page.htm?shortname=inbco20100727648
About BH S&B
BH S&B Holdings LLC, and seven affiliates sought chapter 11
protection (Bankr. S.D.N.Y. Case No. 08-14604) on Nov. 19, 2008.
BH S&B was formed by investment firms Bay Harbour Management and
York Capital Management to acquire the Steve & Barry's retail
chain for $163 million in August 2008. Steve and Barry's, based
in Port Washington, New York, was a specialty retailer of apparel
and accessories, selling, among other things, university apparel
and lifestyle brands, private-label casual clothing, and exclusive
celebrity endorsed apparel.
Steve & Barry's had 240 locations when it was bought and the new
owners had planned to cut that down to 173 stores. BH S&B had
intended to operate certain Steve & Barry's stores as going
concerns and to liquidate inventory at other locations. Since the
sale closing, however, for various reasons, including the general
health of the American economy and the state of the retail market
in particular, sales at all stores have been disappointing, and BH
S&B's revenue has suffered. As a result, BH S&B was not in
compliance with certain covenants under their senior secured
credit facility and had no prospects for continued financing of
their business as a going concern. In consultation with its
lenders, BH S&B decided the appropriate course of action to
maximize value for the benefit of all of its stakeholders was an
orderly liquidation in Chapter 11.
Bay Harbour Management is an SEC registered investment advisor
with significant experience in purchasing distressed companies
and effectuating their turnaround. The firm's holdings have
included the retailer Barneys New York, the facilities based CLEC
Telcove, and the former Aladdin Casino, now operating on the Las
Vegas strip as the Planet Hollywood Resort and Casino following
its rebranding and turnaround.
York Capital Management is an SEC registered investment advisor
with offices in New York, London, and Hong Kong with more than
$15 billion in assets under management. York Capital was founded
in 1991 and specializes in value oriented and event driven equity
and credit investments.
Joel H. Levitin, Esq., and Richard A. Stieglitz, Jr., Esq., at
Cahill Gordon & Reindel LLP, in New York, serve as bankruptcy
counsel to BH S&B and its seven affiliates. RAS Management
Advisors LLC acts as restructuring advisors, and Kurtzman
Carson Consultants LLC as claims and notice agent.
About Steve & Barry's
Steve & Barry's LLC, and 63 affiliates filed separate voluntary
petitions under Chapter 11 (Bankr. S.D.N.Y. Case No. 08-12579)
on July 9, 2008, and were represented by Lori R. Fife, Esq.,
and Shai Waisman, Esq., at Weil, Gotshal & Manges, LLP.
Pursuant to a Purchase Agreement with Bay Horbor and York Capital,
the retail chain was sold for $163 million. Lead Debtor Steve &
Barry's Manhattan LLC (Bankr. S.D.N.Y. Case No. 08-12579) changed
its name to Stone Barn Manhattan LLC, and parent company Steve &
Barry's LLC (Bankr. S.D.N.Y. Case No. 08-12615) is now known as
Steel Bolt LLC. When Steve & Barry's LLC disclosed $693,492,000
in total assets and $638,086,000 in total debts in its chapter 11
petition.
CABI DOWNTOWN: Proposes Settlement with Yates & Sons
----------------------------------------------------
Carla Main at Bloomberg News reports that Cabi Downtown LLC is
asking the U.S. Bankruptcy Court in Miami to approve a settlement
with W.G. Yates & Sons Construction Co. relating to "prepetition
construction work at the Everglades."
Bloomberg recounts that Cabi sued Yates in state court in a
prepetition suit claiming "fraudulent lien, slander of title and
tortuous interference with contract." Yates owed Cabi $2.3
million, and wrongfully filed a lien on the property for $14.761
million, Cabi claimed in the lawsuit. The lawsuit was transferred
to the bankruptcy court.
The report relates that under the settlement, the construction
contract between Cabi and Yates ends, Yates's performance bond and
warranties of its work continue, Yates will indemnify Cabi against
claims of subcontractors, and Cabi will drop the lawsuit against
Yates, according to court papers filed by Cabi. The settlement
provides for an undisclosed sum to be placed into escrow by Cabi
for Yates, which the construction company will receive when
certain work is completed, according to court papers.
About Cabi Downtown
Aventura, Florida-based Cabi Downtown, LLC, operates a real estate
business and owns the 49-story Everglades on the Bay condominium
in Miami. The condominium project has 849 units in two towers,
with 60,000 square feet of retail space. The Company is owed by
GICSA, which says it is the largest and most profitable real
estate developer in Mexico.
The Company filed for Chapter 11 on Aug. 18, 2009 (Bankr. S.D.
Fla. Case No. 09-27168). The Debtor's legal advisors are
Kasowitz, Benson, Torres & Friedman LLP; and Bilzin Sumberg Baena
Price & Axelrod LLP. In its petition, the Debtor listed assets
and debts both ranging from $100 million to $500 million.
CABI DOWNTOWN: Has Green Light to Begin Soliciting Plan Votes
-------------------------------------------------------------
Dow Jones' DBR Small Cap reports that after weeks of dueling with
unsecured creditors over its liquidation strategy, Cabi Downtown
LLC won permission to distribute a Chapter 11 plan that has their
support. Judge Laurel M. Isicoff of the U.S. Bankruptcy Court in
Miami Monday signed off on the developer's disclosure statement,
or plan outline. Cabi Downtown may now start sending copies of
the plan to creditors for a vote in advance of an Oct. 7
confirmation hearing.
Dow Jones notes the plan had initially elicited harsh criticism
from the committee representing unsecured creditors in the case.
They accused Cabi Downtown of engineering a deal that handed a
slew of benefits, including liability releases, to the company's
lenders and owners, while providing unsecured creditors with
little in exchange for their claims. After objecting to the plan
itself, the creditors went one step further, ultimately calling
for an independent official to take the reins of the case.
About Cabi Downtown
Aventura, Florida-based Cabi Downtown, LLC, operates a real estate
business and owns the 49-story Everglades on the Bay condominium
in Miami. The condominium project has 849 units in two towers,
with 60,000 square feet of retail space. The Company is owed by
GICSA, which says it is the largest and most profitable real
estate developer in Mexico.
The Company filed for Chapter 11 on Aug. 18, 2009 (Bankr. S.D.
Fla. Case No. 09-27168). The Debtor's legal advisors are
Kasowitz, Benson, Torres & Friedman LLP; and Bilzin Sumberg Baena
Price & Axelrod LLP. In its petition, the Debtor listed assets
and debts both ranging from US$100 million to US$500 million.
CAPMARK FINANCIAL: Committee Wants Payments to Lenders Halted
-------------------------------------------------------------
The Official Committee of Unsecured Creditors formed in Capmark
Financial Group Inc.'s cases asks the U.S. Bankruptcy Court to
enter an order terminating any additional principal payments to
CitiCorp North America, Inc., the prepetition administrative
agent under a Term Facility and Guaranty Agreement dated as of
May 29, 2009, for the benefit of Citibank, N.A., as Collateral
Agent, JPMorgan Chase Bank, N.A., as Syndication Agent, and
Citigroup Global Markets Inc., and J.P. Morgan Securities, Inc.,
as Joint Lead Arrangers and Joint Bookrunners.
According to the Committee, the Prepetition Secured Lenders have
been receiving quarterly pay-downs of the principal amount of
their claims while unsecured creditors have had no choice but to
wait for some resolution in order to receive any distribution on
their claims.
"As long as these Principal Payments continue, the Prepetition
Secured Lenders have zero incentive to engage in negotiating a
meaningful settlement with the other parties in interest or seek
any resolution of the estates' cause of action," Jamie L.
Edmonson, Esq., at Bayard, P.A., in Wilmington, Delaware, counsel
to the Committee says.
The Committee relates that the Cash Collateral Order expressly
preserves its right to seek termination of adequate protection
payments in the form of the Principal Payments once the
Prepetition Secured Lenders have received $400 million in the
aggregate. According to Committee, the next Principal Payment
scheduled for October 15, 2010, will greatly exceed this
$400 million level. Indeed, the Committee notes, as of August 10,
2010, the Prepetition Secured Lenders have received over 25% of
the face amount of their debt.
Ms. Edmonson avers that the impropriety of continued Principal
Payments as a form of adequate protection is particularly
striking where:
(i) the Prepetition Secured Lenders are clearly over-secured;
(ii) the Prepetition Secured Lenders' other, non-Cash
Collateral is appreciating in value;
(iii) even assuming the Court grants the Motion, the Prepetition
Secured Lenders will receive in the aggregate almost $500
million -- one-third of their total claim -- in cash
payments through December 2010, which is more than enough
to provide adequate protection; and
(iv) the Debtors have an abundance of unrestricted cash to
continue their operations and, in fact, the only use of
the Cash Collateral is to preserve the value of the
Pledged Pool Collateral.
In a separate filing, the Committee seeks the Court's authority
to file under seal portions of the motion to prevent disclosure
of the confidential, non-public information, while allowing the
Court and certain parties-in-interest to consider the Principal
Termination Motion.
About Capmark Financial
Based in Horsham, Pennsylvania, Capmark Financial Group Inc. --
http://www.capmark.com/-- is a diversified company that provides
a broad range of financial services to investors in commercial
real estate-related assets. Capmark has three core businesses:
lending and mortgage banking, investments and funds management,
and servicing. Capmark operates in North America, Europe and
Asia. Capmark has 1,000 employees located in 37 offices
worldwide.
On October 25, 2009, Capmark Financial Group Inc. and certain of
its subsidiaries filed voluntary petitions for relief under
Chapter 11 (Bankr. D. Del. Case No. 09-13684)
Capmark's financial advisors are Lazard Freres & Co. LLC and
Loughlin Meghji + Company. Capmark's bankruptcy counsel is Dewey
& LeBoeuf LLP. Richards, Layton & Finger, P.A., serves as local
counsel. Beekman Advisors, Inc., is serving as strategic advisor.
KPMG LLP is tax and accounting advisor. Epiq Bankruptcy
Solutions, LLC, is the claims and notice agent.
Capmark had total assets of US$20 billion against total debts of
US$21 billion as of June 30, 2009.
Since filing in Chapter 11, Capmark completed three sales to
generate more than $1 billion cash. Berkshire Hathaway Inc. and
Leucadia National Corp. bought most of the business for
$468 million.
Bankruptcy Creditors' Service, Inc., publishes Capmark Financial
Bankruptcy News. The newsletter tracks the Chapter 11 proceedings
of Capmark Financial Group Inc. and its units.
(http://bankrupt.com/newsstand/or 215/945-7000)
CAPMARK FINANCIAL: Committee Wants to Pursue Avoidance Actions
--------------------------------------------------------------
The Official Committee of Unsecured Creditors of Capmark
Financial Group, Inc., and its debtor affiliates asks Judge
Christopher S. Sontchi of the U.S. Bankruptcy Court for the
District of Delaware to allow it to prosecute various claims and
causes of action on behalf of the Debtors' estates including,
among other things, avoiding and recovering fraudulent transfers
and preferences and equitably subordinate claims.
According to Jamie L. Edmonson, Esq., at Bayard, P.A., in
Wilmington, Delaware, co-counsel to the Committee, the Debtors,
the Agents under their Prepetition Credit Facilities, and many of
their prepetition lenders, including insiders, orchestrated and
effectuated a prepetition transfer of $1.5 billion of secured
debt incurred by Capmark Financial Group, Inc. and its guarantor
subsidiaries merely five months before the bankruptcy filing.
"Faced with Capmark's imminent, inevitable bankruptcy, the Agents
and Lenders collaborated with the Debtors to receive a
$1.5 billion payment on an unsecured loan through a supposedly
'new' loan from the same Agents and virtually identical lenders,
including insiders, but on a secured basis," Ms. Edmonson says.
"Nowhere near $1.5 billion of value was given to the Debtors'
Estates for this transfer," she asserts.
Ms. Edmonson reminds the Court that the Third Circuit has held
that the Bankruptcy Code provides a qualified right for a
creditors' committee to commence actions in the name of the
estate with approval of the bankruptcy court.
Specifically, she says, the Third Circuit in Cybergenics Corp. v.
Chinery held that Sections 503(b)(3)(B), 1103(c)(5), and 1109(b)
of the Bankruptcy Code, together with the bankruptcy court's
equitable powers granted under Section 105(a), reflect Congress's
intent to allow a committee to pursue an avoidance action for the
estate's benefit.
The Unsecured Debt
A group of private equity investors, which included affiliates of
Goldman, Sachs & Co. and Dune Real Estate Parallel Fund LP,
acquired a controlling stake in what is now CFGI from CFGI's
former parent on March 23, 2006. To finance the March 23, 2006,
transaction, the Debtors incurred approximately $8.7 billion of
debt at closing.
Specifically, CFGI and certain of its subsidiaries entered into
two unsecured debt facilities:
(i) an Unsecured Credit Facility in the principal amount of
$5.5 billion, the terms of which are governed by a credit
agreement among CFGI; certain of its subsidiaries; the
lenders, Citibank N.A., as administrative agent; J.P
Morgan Securities Inc., as syndication agent; and Credit
Suisse, Deutsche Bank Securities Inc., Goldman Sachs
Credit Partners L.P. and The Royal Bank of Scotland plc,
as documentation agents; and
(ii) an Unsecured Bridge Loan Facility in the principal amount
of $5.25 billion, the terms of which are governed by a
Bridge Loan Agreement among CFGI; the lenders party
thereto, Citicorp North America, Inc., as administrative
agent, the Syndication Agent, the Documentation Agents,
Citigroup Global Markets Inc., J.P. Morgan Securities
Inc.; Credit Suisse; Deutsche Bank Securities Inc.;
Goldman Sachs Credit Partners L.P. and The Royal Bank of
Scotland plc as joint lead arrangers and joint
bookrunners.
CFGI and certain of its subsidiaries are borrowers under the
Credit Agreement, and CFGI is a guarantor of the obligations of
each Borrower thereunder. Additionally, nine of CFGI's direct
and indirect subsidiaries guaranteed CFGI's obligations under the
Credit Agreement pursuant to a separate guaranty agreement.
CGFI is the sole borrower under the Bridge Loan. The same
Guarantors under the Credit Agreement also guaranteed CGFI's
obligations under the Bridge Loan pursuant to a separate guaranty
agreement.
In May 2009, CGFI, the Guarantors, the Additional Guarantors and
various lenders that held debt under one or both of the 2006
Credit Facility or Bridge Loan entered into a $1.5 billion
secured term loan facility, whereby Capmark incurred the
$1.5 billion in Secured Debt in exchange for the unsecured debt
held by the Lenders in substantially the same amount.
As a result of the Secured Debt transaction, $1.5 billion of
unsecured debt was replaced with $1.5 billion of Secured Debt
with the Debtors granting liens on their assets while receiving
little to no value in exchange, all to the detriment of the
Debtors' Estates and unsecured creditors, Ms. Edmonson tells the
Court.
"Indeed, the Debtors' lack of assets to support a fair
distribution to unsecured creditors in these bankruptcy cases is
the direct result of this troubling transaction," Ms. Edmonson
avers.
Ms. Edmonson maintains that because CFGI and its Debtor
guarantors were insolvent and reasonably equivalent value was not
given for the liens granted under the Secured Debt transaction,
the Secured Debt and the liens granted to secure it should be
avoided as constructively fraudulent transfers.
According to Ms. Edmonson, the Debtors have failed to pursue
these Claims, and have refused to cooperate with the Committee's
prosecution by declining the Committee's request to assign those
claims to the Committee and by hindering the Committee's ability
to do an investigation.
She asserts that the reason for the Debtors' refusal is that they
were actively involved in the Secured Debt transaction and, as a
result, do not want an independent examination of the bona fides
of the transaction in which they actively participated.
Citi Claim
In connection with seeking recovery for in excess of $1.5 billion
as a "secured" creditor with respect to this transaction,
Citicorp North America, Inc., filed Claim No. 601 on April 21,
2010.
In the Citi Claim, Citicorp asserts claims for, among others:
(a) principal in the amount of $1.5 billion as of the Petition
Date, as reduced from time to time by payments made
pursuant to the Cash Collateral Order;
(b) interest in the amount of $5 million as of the Petition
Date; and
(c) fees and expenses in a to-be-determined amount.
According to the Committee, all amounts sought under the Claim
are subject to recovery by the Estates under fraudulent
conveyance law.
However, the Committee notes, even if the Court does not entirely
disallow the Citi Claim on that basis, the claim is still not
secured at anywhere near $1.5 billion.
Debtors Block Pursuit of Claims
The Committee relates that on May 25, 2010, it sent a letter to
the Debtors requesting that the Debtors stipulate to its standing
to pursue certain potential causes of action on behalf of the
estates, including the recovery of fraudulent conveyances and
preferential transfers, and equitable subordination of the Citi
Claim. However, the Committee relates, the request was flatly
and unjustifiably denied.
"The debtors are attempting to block the pursuit of such claims,
motivated by their inherent conflicts and desire to protect
potentially complicit insiders," Ms. Edmonson asserts. "Indeed,
rather than permitting and assisting the Committee in the pursuit
of those Claims, the Debtors have erected hurdle after hurdle to
impair the pursuit thereof," she adds.
"Moreover, the debtors financial advisers, Lazard, also
participated in the transaction, and the debtors' current
bankruptcy counsel, Dewey & LeBoeuf, was general restructuring
counsel to Capmark at the time," she points out.
Michael Kessler, Esq., at Dewey & LeBoeuf, in New York, general
restructuring advisor to the Debtors, says he disagrees with the
statements, The AmLaw Daily reports. Fredric Sosnick, a Shearman
& Sterling partner representing Citigroup in the matter, gave no
comment on the issue, the report adds.
About Capmark Financial
Based in Horsham, Pennsylvania, Capmark Financial Group Inc. --
http://www.capmark.com/-- is a diversified company that provides
a broad range of financial services to investors in commercial
real estate-related assets. Capmark has three core businesses:
lending and mortgage banking, investments and funds management,
and servicing. Capmark operates in North America, Europe and
Asia. Capmark has 1,000 employees located in 37 offices
worldwide.
On October 25, 2009, Capmark Financial Group Inc. and certain of
its subsidiaries filed voluntary petitions for relief under
Chapter 11 (Bankr. D. Del. Case No. 09-13684)
Capmark's financial advisors are Lazard Freres & Co. LLC and
Loughlin Meghji + Company. Capmark's bankruptcy counsel is Dewey
& LeBoeuf LLP. Richards, Layton & Finger, P.A., serves as local
counsel. Beekman Advisors, Inc., is serving as strategic advisor.
KPMG LLP is tax and accounting advisor. Epiq Bankruptcy
Solutions, LLC, is the claims and notice agent.
Capmark had total assets of US$20 billion against total debts of
US$21 billion as of June 30, 2009.
Since filing in Chapter 11, Capmark completed three sales to
generate more than $1 billion cash. Berkshire Hathaway Inc. and
Leucadia National Corp. bought most of the business for
$468 million.
Bankruptcy Creditors' Service, Inc., publishes Capmark Financial
Bankruptcy News. The newsletter tracks the Chapter 11 proceedings
of Capmark Financial Group Inc. and its units.
(http://bankrupt.com/newsstand/or 215/945-7000)
CAPMARK FINANCIAL: Proposes October 25 as Protech Bar Date
----------------------------------------------------------
Capmark Financial Group Inc. and its units ask the U.S. Bankruptcy
Court to:
(i) establish October 25, 2010, as the deadline by which each
person or entity other than governmental units, must file
a proof of claim based on prepetition claims against
Protech Holdings C, LLC;
(ii) establish January 25, 2011, as the deadline by which any
governmental unit must file Proofs of Claim against
Protech;
(iii) approve proposed bar date notice procedures;
(iv) approve extensions of the applicable Protech Bar Date with
respect to claims filed in response to amendments of the
Protech Schedules or for rejection damage claims;
(v) approve the proposed form of bar date notice; and
(vi) approve the proposed manner of publication of the Protech
Bar Date Notice.
To recall, the Court entered on February 19, 2010, an order
establishing deadlines for filing proofs of claim and approving
the form and manner of notice of the bar date, setting various
deadlines for filing Proofs of Claim against all Debtors. The
Debtors relate that since Protech commenced its Chapter 11 case
after the entry of the Bar Date Order, the Bar Date Order did not
establish any bar dates for Protech.
To facilitate and efficiently coordinate the claims
reconciliation and notice process with respect to Protech, the
Debtors believe it is necessary to establish various clear
deadlines and procedures for filing Proofs for Claim against
Protech.
Bar Date Notice
The Debtors propose to mail a Protech Bar Date Notice which
provides notice of the Protech Bar Dates and contains information
regarding who must file a Proof of Claim, the procedure for
filing a Proof of Claim, the consequences of failure to timely
file a Proof of Claim, and instructions for completing a Proof of
Claim.
These persons or entities are not required to file a Proof of
Claim on or before the applicable Bar Date:
(a) any person or entity whose claim is listed on the Protech
schedules of assets and liabilities and (i) whose claim is
not described as "disputed," contingent," or
"unliquidated," and (ii) who does not dispute the amount
or nature of the claim;
(b) any person or entity whose claim against Protech has been
paid in full;
(c) any person or entity that holds an interest in Protech,
which interest is based exclusively on the ownership of
membership interests, partnership interests, or rights to
purchase, sell, or subscribe to that interest;
(d) any person or entity that holds a claim that has been
allowed by an order of the Court entered on or before the
applicable Protech Bar Date;
(e) any holder of a claim for which a separate deadline is
fixed by the Court;
(f) any holder of a claim against Protech that has previously
been properly filed with the Clerk of the Court or with
Epiq Bankruptcy Solutions, LLC;
(g) any Debtor holding a claim against Protech;
(h) any non-debtor subsidiary or affiliate of any Debtor
holding a claim against Protech; and
(i) any current employee, to the extent that an order of the
Court previously authorized the Debtors to honor that
claim in the ordinary course as a wage or benefit.
Consequences of Failure to File POC
Any holder of a claim against Protech who is required, but fails,
to file a Proof of Claim will be forever barred, estopped, and
enjoined from asserting that claim against Protech, and the
Debtors and their properties will be forever discharged from any
and all indebtedness or liability with respect to that claim.
Method of Filing
The original Proofs of Claim must be delivered so as to the
received on or before the applicable Protech Bar Date by (i)
first-class mail to Capmark Claims Processing Center, c/o Epiq
Bankruptcy Solutions, LLC, Grand Central Station, P.O. Box 4613,
New York, 10163-4613, or (ii) overnight delivery service or hand
delivery to Capmark Claims Processing Center, c/o Epiq Bankruptcy
Solutions, LLC, 757 Third Avenue, 3rd Floor, New York.
Form Instructions
Each proof of claim must:
(a) be written in the English language;
(b) denominate the claim in lawful currency of the United
States as of the Protech Petition Date;
(c) conform substantially with the Proof of Claim Form;
(d) be signed by the claimant or, if the claimant is not an
individual, by an authorized agent of the claimant;
(e) indicate that the claim is being asserted against Protech;
and
(f) include supporting documentation or an explanation as to
why that documentation is not available.
Bar Date Procedures
In connection with providing notice of the Protech Bar Dates to
all claimants and parties-in-interest, the Debtors request
approval of the Protech Bar Date Procedures. The Debtors propose
to mail a Bar Date Package within five days following the late of
(i) the date of entry of the order approving the Protech Bar Date
and (ii) the date of filing the Protech Schedules.
Publication
The Debtors maintain that it is in the best interest to give
notice to certain parties by publication of the Protech Bar
Dates, including:(i) those potential creditors to whom no other
notice was sent and who are unknown or not reasonably
ascertainable by the Debtors and (ii) known creditors with
addresses unknown to the Debtors. The Debtors propose to publish
notice of the Protech Bar Dates by publishing the Bar Date
Notice, once a week for two consecutive weeks, in The New York
Times and The Wall Street Journal (National Edition).
About Capmark Financial
Based in Horsham, Pennsylvania, Capmark Financial Group Inc. --
http://www.capmark.com/-- is a diversified company that provides
a broad range of financial services to investors in commercial
real estate-related assets. Capmark has three core businesses:
lending and mortgage banking, investments and funds management,
and servicing. Capmark operates in North America, Europe and
Asia. Capmark has 1,000 employees located in 37 offices
worldwide.
On October 25, 2009, Capmark Financial Group Inc. and certain of
its subsidiaries filed voluntary petitions for relief under
Chapter 11 (Bankr. D. Del. Case No. 09-13684)
Capmark's financial advisors are Lazard Freres & Co. LLC and
Loughlin Meghji + Company. Capmark's bankruptcy counsel is Dewey
& LeBoeuf LLP. Richards, Layton & Finger, P.A., serves as local
counsel. Beekman Advisors, Inc., is serving as strategic advisor.
KPMG LLP is tax and accounting advisor. Epiq Bankruptcy
Solutions, LLC, is the claims and notice agent.
Capmark had total assets of US$20 billion against total debts of
US$21 billion as of June 30, 2009.
Since filing in Chapter 11, Capmark completed three sales to
generate more than $1 billion cash. Berkshire Hathaway Inc. and
Leucadia National Corp. bought most of the business for
$468 million.
Bankruptcy Creditors' Service, Inc., publishes Capmark Financial
Bankruptcy News. The newsletter tracks the Chapter 11 proceedings
of Capmark Financial Group Inc. and its units.
(http://bankrupt.com/newsstand/or 215/945-7000)
CAPRIUS INC: Posts $441,000 Net Loss in March 31 Quarter
--------------------------------------------------------
Caprius Inc. reported a net loss of $441,142 for the fiscal second
quarter ended March 31, 2010, compared with a net loss of $649,748
for the same period ended March 31, 2009. The Company posted a
net loss of $1,480,918 for the six months ended March 31, 2010,
compared with a net loss of $1,758,534 for the same period a year
ago.
Total revenues were $25,907 for the second quarter of 2010,
compared with $247,080 for the second quarter of 2009. Total
revenues were $721,471 for the first half of 2010, from $639,895
for the first half of 2009.
As of March 31, 2010, the Company's consolidated balance sheet
showed $1,890,776 in total assets, $5,735,663 in total
liabilities, and a stockholders' deficit of $3,844,887.
The Company's consolidated balance sheets at March 31, 2010,
also showed strained liquidity with $1,353,196 in total current
assets available to pay $4,127,740 in total current liabilities.
A full-text copy of the Company's Form 10-Q is available at no
charge at is http://ResearchArchives.com/t/s?68ec
About Caprius, Inc.
Paramus, N.Y.-based Caprius, Inc., is engaged in the infectious
medical waste disposal business, through its wholly-owned
subsidiary M.C.M. Environmental Technologies, Inc., which
developed, markets and sells the SteriMed and SteriMed Junior
compact systems that simultaneously shred and chemically disinfect
regulated medical waste, utilizing its proprietary, EPA
registered, bio-degradable chemical known as Ster-Cid.
Marcum LLP, in New York City, expressed substantial doubt about
the Company's ability to continue as a going concern after
auditing the Company's financial results for fiscal 2009. The
independent auditors noted of the Company's working capital
deficiency and substantial recurring losses from operations.
CARIBBEAN PETROLEUM: Seeks Chapter 11 After Explosion
-----------------------------------------------------
Caribbean Petroleum Corp., operator of the only privately owned
deep-water dock in San Juan Harbor, Puerto Rico, has filed a
Chapter 11 petition (Bankr. D. Del. Case No. 10-12553).
The Company estimated assets of $100 million to $500 million and
debts of $500 million to $1 billion as of the Petition Date.
This is Caribbean Petroleum's second stint in Chapter 11. It
emerged from Chapter 11 seven years ago. The Debtor, a petroleum
distributor, blames the second filing on explosions that occurred
October 2009 resulting to a removal order by the U.S.
Environmental Protection Agency in February 2010.
The EPA issued the clean-up order due to environmental hazards
attributable to the October 23, 2009 explosions. The explosions
at the Debtor's facilities have already caused severe damages to
the Debtor's petroleum storage tanks, certain surrounding
infrastructure and fuel transfer pipelines.
Bloomberg News relates that according to the U.S. Chemical Safety
Board, which is investigating the incident, the explosion occurred
when a vapor cloud, which had formed as a tank was being filled
with gasoline from a ship docked in the San Juan Harbor, ignited
Banco Popular de Puerto Rico has agreed to provide postpetition up
to $10 million senior secured superpriority priming non-revolving,
multi-draw facility to Caribbean Petroleum.
Mark D. Collins, Esq., at Richards, Layton & Finger, P.A., and
George A. Davis, Esq., at Cadwalader, Wickersham & Taft LLP, serve
as bankruptcy counsel. FTI Consulting is the financial advisor.
Kevin Lavin, of FTI, has been named chief restructuring officer,
and Roy Messing, also of FTI, will be advisor to the restructuring
process.
CARROLL PROPERTIES: Files for Chapter 11 Bankruptcy Protection
--------------------------------------------------------------
Chapmansboro, Tennessee-based Carroll Properties at Cheap Hill,
LLC, filed for Chapter 11 on August 10, 2010 (Bankr. M.D. Tenn.
Case No. 10-08408), listing assets and debts of up to $10 million.
Nashville Business Journal says Carroll Properties is a real
estate venture. The Company owes $2 million to First Bank.
CATHOLIC CHURCH: Abuse Lawsuit Against Fairbanks Priest Dismissed
-----------------------------------------------------------------
A U.S. District Court judge has dismissed the case against a
Catholic priest accused of sexual abuse by a Stebbins woman.
Federal Judge John Sedwick's action came after the woman withdrew
her claims against Fr. Gerald Ornowski, MIC. The woman, referred
to in court documents as Jane Doe, charged that Fr. Ornowski
abused her in Stebbins in the 1990s when she was a child. The
woman filed her claims in May 2009.
Responding to the dismissal, Fr. Ornowski said he forgives the
woman who made the claims. "I harbor no animosity against my
accuser, even though I have suffered irreparable damage to my good
name and the loss of my ministry for a year. I heartily thank all
the people who supported me during this ordeal."
Fr. Ornowski has always denied the charges. He was in
Massachusetts for medical reasons when the allegations surfaced.
The woman sued Fr. Ornowski and his order, the Marians of the
Immaculate Conception, in Stockbridge, Massachusetts. The
Fairbanks Catholic Diocese was not named in the suit. However,
following diocesan guidelines, Bishop Donald Kettler placed Fr.
Ornowski on administrative leave until the issue was settled in
court.
Bishop Kettler said he was heartened by the judge's dismissal.
"Fr. Gerald's ministry, first in rural Alaska and then for more
than a decade at the University of Alaska Fairbanks as chaplain
and pastor, has been marked by holiness and distinction. I am
glad his name has been cleared."
Judge Sedwick's dismissal, issued May 24, was made with "extreme
prejudice," legal language meaning the woman would not be able to
file her claims again in court.
Fr. Ornowski's future ministry has not been fully determined by
his religious superior. Fr. Ornowski may also come up to
Fairbanks occasionally to help the Fairbanks Diocese with the
deaconate training.
About the Diocese of Fairbanks
The Roman Catholic Diocese of Fairbanks in Alaska, aka Catholic
Bishop of Northern Alaska, aka Catholic Diocese of Fairbanks, aka
The Diocese of Fairbanks, aka CBNA -- http://www.cbna.info/--
filed for Chapter 11 bankruptcy on March 1, 2008 (Bankr. D. Alaska
Case No. 08-00110). Susan G. Boswell, Esq., at Quarles & Brady
LLP represents the Debtor in its restructuring efforts. Michael
R. Mills, Esq., of Dorsey & Whitney LLP serves as the Debtor's
local counsel and Cook, Schuhmann & Groseclose Inc. as its special
counsel. Judge Donald MacDonald, IV, of the United States
Bankruptcy Court for the District of Alaska presides over
Fairbanks' Chapter 11 case. In its schedules, the Debtor
disclosed total assets of $13,316,864 and total liabilities of
$1,838,719 as of the Petition Date.
The church's plans to file its bankruptcy plan and disclosure
statement on July 15, 2008. Its exclusive plan filing period
expires on January 15, 2009. (Catholic Church Bankruptcy News;
Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000).
CATHOLIC CHURCH: Fairbanks File Post-Conf. Report for March 2010
----------------------------------------------------------------
The Catholic Bishop of Northern Alaska submitted to the U.S.
Bankruptcy Court for the District of Alaska its first post-
confirmation progress report for the period beginning March 1,
2010, and ending March 31, 2010, pursuant to Rule 3022-1(a) of the
Local Bankruptcy Rules of the U.S. Bankruptcy Court for the
District of Alaska.
The Diocese of Fairbanks reports that:
(1) The Court entered its order confirming the "Debtor's and
the Official Committee of Unsecured Creditors' Third
Amended and Restated Joint Plan of Reorganization for the
Catholic Bishop of Northern Alaska" on February 17, 2010.
The Confirmation Order became a final order on March 3,
2010;
(2) The Effective Date of the Plan occurred on March 19, 2010;
(3) These actions have been taken and progress was made toward
completion of administration of the bankruptcy estate as
of March 31, 2010:
* Pursuant to the Plan and the Confirmation Order, funds
were transferred from the Diocese to the Settlement
Trust;
* The Settlement Trustee and Special Arbitrator were
designated as estate representatives pursuant to Section
1123(b)(3) of the Bankruptcy Code with respect to all
claims, defenses, counterclaims, setoffs and recoupments
belonging to the Diocese or the Estate with respect to
the Claims of the Tort Claimants;
* CBNA assigned all its rights against the Great Divide
Candidate Insurers, Catholic Mutual Relief Society of
America and Travelers Casualty and Surety Company, to
the Settlement Trustee, and all commitments, documents
agreements and assignments necessary to do so must be
delivered;
* The Sale of Assets to the Endowment closed;
* The Endowment Documents were amended in accordance with
the Plan and Order;
* The Disputed Claims Reserve was established;
* The Trust Administrative Expense Reserve was
established;
* CBNA assigned all claims against the Sisters of Saint
Ann and the Jesuit Safeco Insurance Policies Claims to
the Settlement Trustee;
* All Priority Unsecured Claims were paid unless otherwise
agreed in writing;
* All Administrative Expense Claims were paid unless
otherwise agreed in writing;
* Class 12 (Continental) Claims were paid $75,000 cash;
and
* The sale of Pilgrim Hot Springs was consummated and
closed;
(4) All fees required by Section 1930 of the Judicial and
Judiciary Procedures Code have been paid as of March 31,
2010; and
(5) These matters concerning administration of the estate were
still pending as of March 31, 2010:
* Both adversary proceedings against insurers remained
pending, though progress was being made toward
dismissal;
* Fee applications remain outstanding; and
* Matters in regard to the Louis and Nancy Green's stay
violation and their application for injunction against
the sale of Pilgrim Hot Springs remain pending.
About the Diocese of Fairbanks
The Roman Catholic Diocese of Fairbanks in Alaska, aka Catholic
Bishop of Northern Alaska, aka Catholic Diocese of Fairbanks, aka
The Diocese of Fairbanks, aka CBNA -- http://www.cbna.info/--
filed for Chapter 11 bankruptcy on March 1, 2008 (Bankr. D. Alaska
Case No. 08-00110). Susan G. Boswell, Esq., at Quarles & Brady
LLP represents the Debtor in its restructuring efforts. Michael
R. Mills, Esq., of Dorsey & Whitney LLP serves as the Debtor's
local counsel and Cook, Schuhmann & Groseclose Inc. as its special
counsel. Judge Donald MacDonald, IV, of the United States
Bankruptcy Court for the District of Alaska presides over
Fairbanks' Chapter 11 case. In its schedules, the Debtor
disclosed total assets of $13,316,864 and total liabilities of
$1,838,719 as of the Petition Date.
The church's plans to file its bankruptcy plan and disclosure
statement on July 15, 2008. Its exclusive plan filing period
expires on January 15, 2009. (Catholic Church Bankruptcy News;
Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000).
CATHOLIC CHURCH: Wilmington Appeals Ruling on Committee Suit
------------------------------------------------------------
The Catholic Diocese of Wilmington, Inc., and the Non-Debtor
Defendants separately notify Judge Christopher S. Sontchi that
they will take an appeal to the United States District Court for
the District of Delaware or the United States Court of Appeals for
the Third Circuit from these rulings:
(a) Opinion dated June 28, 2010, which held that the Diocese's
pooled investment account is property of the bankruptcy
estate, except for the investment made by St. Ann's Roman
Catholic Church;
(b) Corrected Order Partially Granting and Partially Denying
Declaratory Relief with Respect to the Second and Fourth
Claims for Relief of the Complaint and Directing Entry of
Final Judgment Thereon (Phase I) dated July 19, 2010;
(c) Corrected Final Judgment dated July 19, 2010;
(d) Opinion dated July 21, 2010, with respect to the
Non-Debtor Defendants' motion for reconsideration of the
June 28 Opinion; and
(e) Order dated July 21, 2010 denying the Motion for
Reconsideration.
June 28 Opinion
In accordance with his June 28, 2010 opinion holding that the
Catholic Diocese of Wilmington, Inc.'s pooled investment account
is property of the bankruptcy estate, except for the investment
made by St. Ann's Roman Catholic Church, Judge Christopher S.
Sontchi of the U.S. Bankruptcy Court for the District of Delaware
issued a final judgment holding that all of the defendants in the
adversary proceeding intended to hold the funds transferred by the
Non-Debtor Defendants for investment into the PIA in a resulting
trust, except with respect to St. Ann.
An express trust exists between the Diocese and St. Ann with
respect to funds that St. Ann deposited into the PIA, Judge
Sontchi held. He noted that the Diocese and the Non-Debtor
Defendants, except St. Ann, have failed to meet their burden of
tracing the funds they transferred to the Diocese into the PIA.
Thus, Judge Sontchi ruled that with the exception of the
fractional interests in the PIA attributable to St. Ann, the
entire balance of the PIA is property of the Diocese' bankruptcy
estate under Section 541(a) of the Bankruptcy Code. He maintained
that St. Ann's interests constitute property held in a resulting
trust and do not constitute property of the estate under Section
541(a).
Court Rules on Phase I
of the Adversary Proceeding
Judge Sontchi granted in part and denied in part the Second and
Fourth Claims for relief in the adversary proceeding, which
constitute Phase I of the bifurcated trial in the action.
The Second Claim seeks for declaratory relief that no valid trust
exists with respect to the PIA, while the Fourth Claim seeks
declaratory relief that funds deposited into the PIA are
untraceable.
The Court denied the Second Claim because the Defendants intended
for the Diocese to hold the funds transferred by the Non-Debtor
Defendants for investment into the PIA in a resulting trust,
except with respect to St. Ann's, and that an express trust exists
between the Diocese and St. Ann.
The relief requested in the Fourth Claim is granted, except with
respect to St. Ann because the Diocese and Non-Debtor Defendants,
except St. Ann, have failed to meet their burden of tracing the
funds transferred into the PIA. The Fourth Claim is denied, in
part, and only to the extent relief is sought with respect to St.
Ann because the Diocese and St. Ann have met their burden of
tracing St. Ann's funds in the PIA.
Judge Sontchi held that the Diocese will continue to use the same
method of sub-fund accounting with respect to the PIA that it used
prior to the commencement of its Chapter 11 case, so that all
postpetition transfers and transactions respecting the PIA will be
promptly recorded in, and readily ascertainable from, the
Diocese's books and records.
In another order, Judge Sontchi denied the request for
reconsideration of his June 28 Opinion filed by certain Non-Debtor
Defendants. Judge Sontchi opined that he considered the entirety
of the evidence presented in the case and found that the
defendants had failed to meet their burden of tracing their funds
in the PIA.
Prior to the entry of the order, the Non-Debtor Defendants and the
Diocese filed separate replies in further support of the Motion
for Reconsideration, and in opposition to the Creditors
Committee's objection to that Motion.
The Court also filed corrected versions of the Final Judgment and
the Phase I Order.
Non-Debtor Defendants Object to Joinder
The Non-Debtor Defendants assert that the joinder filed by the
Unofficial Committee of 91 State Court Abuse Survivors in support
of the Creditors Committee's motion to unseal all of the joint
trial exhibits moved into evidence during the trial held on June 2
to 4, and 8, 2010, in the adversary proceeding vividly
demonstrates why a further inquiry would be helpful before the
Court decides on the Motion to Unseal.
Stephen E. Jenkins, Esq., at Ashby & Geddes, in Wilmington,
Delaware, tells the Court that the Joinder does many things,
including the allegation that the Non-Debtor Defendants and their
lawyers are an integral part of a cover up of the sexual abuse of
innocent young children. He contends that if they had evidence,
Abuse Survivors' counsel, The Neuberger Firm, P.A., and Jacobs &
Crumplar, P.A., would be obliged, at a minimum, to bring that
evidence to the Office of Disciplinary Counsel.
Like NF/J&C's recent demand that the Diocese's counsel be jailed
for contempt, the Joinder's accusation of criminal wrongdoing
appears to represent a warning shot across the bow to those who
would even implicitly criticize NF/J&C rather than an allegation
for which they demand relief, Mr. Jenkins points out.
The Non-Debtor Defendants had no problem with allowing their
confidential financial information to be reviewed by the Creditors
Committee's counsel, Mr. Jenkins avers. Rather, he insists, they
are concerned that the counsel is attempting to use the Court's
processes to gain access to the defendants' internal information
to determine which of them might have "deep pockets" or for other
illegitimate purposes.
The Motion to Unseal in front of the Court says one thing on the
surface but there are layers underneath that deserve more careful
attention, Mr. Jenkins argues. Accordingly, the Non-Debtor
Defendants renew their request that the Court permit the
development of a limited record on the issue.
Diocese Responds to Motion to Unseal
Contrary to the statements contained within the Motion to Unseal,
the reply in support of that request and the Joinder, the Diocese
asserts that it did not move to seal any of the documents
introduced at trial in the adversary proceeding, and does not now
intend to file any of that motion.
The Diocese informs Judge Sontchi that it takes no position on the
arguments raised in the Motion to Unseal, the Joinder or the Non-
Debtor Defendants' objection.
In another filing, the Creditors Committee seeks oral argument on
its Motion to Unseal to the extent that the Court would find the
oral argument useful. The Creditors Committee submits that oral
argument will provide the parties to the adversary proceeding with
an opportunity to respond promptly to any questions the Court may
have with respect to the requested relief in the Motion to Unseal.
The Creditors Committee also notifies the Court and parties-in-
interest that all briefing has been completed with respect to the
Motion to Unseal.
Non-Debtor Defendants Seek Certification
The Non-Debtor Defendants ask the Court for an order certifying
their appeal of Judge Sontchi's order partially granting and
partially denying the Second and Fourth Claims for Relief, and the
Phase I Order and Final Judgment for direct appeal to the United
States Court of Appeals for the Third Circuit.
The Non-Debtor Defendants also sought and obtained an expedited
consideration of the request.
Mr. Jenkins contends that certification is mandatory if any single
circumstance of those enumerated in Section 158(d)(2)(A) of the of
the Judicial and Judiciary Procedures Code exists, which
circumstances include if the judgment, order or decree involves a
question of law as to which there is no controlling decision of
the court of appeals for the circuit or of the Supreme Court of
the United States, or involves a matter of public importance. He
points out that the Court's ruling involves a matter of "Public
Importance" concerning a critical aspect of Bankruptcy Code
protection.
The ruling resolved issues of first impression for which there is
no controlling Third Circuit or Supreme Court decision, Mr.
Jenkins also argues. He adds, among other things, that direct
appeal to the Third Circuit will materially advance both the
adversary proceeding and the Chapter 11 case.
The Diocese joins in the Request for Certification.
Creditors Committee Objects
The Creditors Committee asks the Court to deny the Request for
Certification because the Non-Debtor Defendants point to nothing
to demonstrate either that the issues raised in their appeal
involve broad, far-reaching, previously undecided legal questions
or that certification would materially advance the progress of the
bankruptcy case, as required to justify a direct appeal to the
Third Circuit under the standards set forth in Section
158(d)(2)(A).
Laura Davis Jones, Esq., at Pachulski Stang Ziehl & Jones LLP, in
Wilmington, Delaware, argues that the Phase I Order and Final
Judgment do not involve a pure question of law as to which there
is no controlling decision of the Third Circuit, but rather
involves the application of well-settled and controlling law to a
set of facts for which there is no specific precedential decision
on point, as developed in a full trial and record before the
Court.
Ms. Jones contends that the appeal does not involve a question of
law without controlling authority. She points out, among other
things, that the Non-Debtor Defendants completely ignore the Third
Circuit's seminal decision in Official Committee of Unsecured
Creditors v. Columbia Gas Transmission Corp. (In re Columbia Gas
Systems, Inc.), 997 F.2d 1039, 1064 n.17 (3d Cir. 1993), in which
the Third Circuit expressly adopted and required the application
of the lowest-intermediate-balance test notwithstanding the fact
that the debtor "meticulously tracked" the alleged trust funds
through an accurate sub-fund accounting system.
Certification Should be Granted,
Non-Debtor Defendants Insist
In its opposition to the Request for Certification, the Creditors
Committee contends that none of the circumstances for
certification set forth in Section 158(d)(2)(A) is present, Mr.
Jenkins relates. He contends that none of the arguments asserted
by the Creditors Committee preclude application of Section 158 to
the appeal.
The Creditors Committee fails to consider the Non-Debtor
Defendants' ability to raise other issues for consideration on
appeal, in addition to those identified in the Request for
Certification, which may or may not give rise to a factual
inquiry, Mr. Jenkins asserts. He also points out that
certification should be granted because the Diocese's bankruptcy
and the issues to the appeal are matters of public importance.
"The brevity with which the Committee responds to the Non-Debtor
Defendants' request to certify the issues for appeal as matters of
public importance is telling," Mr. Jenkins says. "While it
summarily and generally contests any reference to the human
importance of the investors and proceeds of the PIA, the Committee
fails to dispute the legal significance of this proceeding," he
continues.
The Creditors Committee also asserts that litigating the appeal in
the Third Circuit would disrupt "the most favorable environment"
for "global resolution of the sexual abuse claims," and that
litigating in state court is a far, far more expensive proceeding
for all parties, Mr. Jenkins relates. He argues that the position
is not only contradictory, it is wrong on both counts because it
ignores what actually will be litigated in the different
proceedings.
At bottom, resolution of the appeal will settle what the Creditors
Committee itself described as "the primary monetary issue in this
case," namely, the size of the estate that must be distributed to
creditors, Mr. Jenkins contends. He points out that the appeal
will also decide a very related issue of significance to the
development of the case, that is whether the Non-Debtor Defendants
are "creditors" of the Diocese, who are entitled to representation
by the Creditors Committee, and ultimately, to vote on the
Diocese's Chapter 11 plan.
About the Diocese of Wilmington
The Diocese of Wilmington covers Delaware and the Eastern Shore of
Maryland and serves about 230,000 Catholics. The Delaware diocese
is the seventh Roman Catholic diocese to file for Chapter 11
protection to deal with lawsuits for sexual abuse. Previous
filings were by the dioceses in Spokane, Washington; Portland,
Oregon; Tucson, Arizona; Davenport, Iowa, Fairbanks, Alaska; and
San Diego, California.
The bankruptcy filing automatically stayed eight consecutive abuse
trials scheduled in Delaware scheduled to begin October 19. There
are 131 cases filed against the Diocese, with 30 scheduled for
trial.
The Diocese filed for Chapter 11 on Oct. 18, 2009 (Bankr. D. Del.
Case No. 09-13560). Attorneys at Young Conaway Stargatt & Taylor,
LLP, serve as counsel to the Diocese. The Ramaekers Group, LLC is
the financial advisor. The petition says assets range $50,000,001
to $100,000,000 while debts are between $100,000,001 to
$500,000,000. (Catholic Church Bankruptcy News; Bankruptcy
Creditors' Service, Inc., http://bankrupt.com/newsstand/or
215/945-7000).
CENTAUR LLC: August 25 Hearing on Sale of Equity Interests
----------------------------------------------------------
Carla Main at Bloomberg News reports that Centaur LLC won approval
from the U.S. Bankruptcy Court in Wilmington, Delaware, to shorten
the amount of time in which it may give notice of the marketing
and auction of equity interests to be issued on the effective date
of its reorganization plan. Notice will be given on the day the
reorganization plan takes effect, according to court papers. The
order signed by U.S. Bankruptcy Judge Kevin J. Carey also
scheduled a hearing for Aug. 25 where Centaur will seek to
schedule an auction, approve bidding procedures and the purchase
agreement for the assets of unit Centaur Pennsylvania LLC.
Centaur LLC and its units will seek approval of the reorganization
plan at the hearing.
About Centaur LLC
Indianapolis, Indiana-based, Centaur, LLC, aka Centaur Indiana,
LLC -- http://www.centaurgaming.net/-- is an company involved in
the development and operation of entertainment venues focused on
horse racing and gaming. The Company and its affiliates filed for
Chapter 11 bankruptcy protection on March 6, 2010 (Bankr. D.
Del. Case No. 10-10799). Jeffrey M. Schlerf, Esq., at Fox
Rothschild LLP, assists the Company in its restructuring effort.
The Company disclosed assets of $584 million and debt of
$681 million as of the Petition Date.
Affiliates Centaur PA Land LP and Valley View Downs LP filed for
bankruptcy reorganization in October to keep alive a project to
develop a racetrack in Pennsylvania. The filings were made
following the failure to make payments due in October on a
$382.5 million first-lien debt and a $192 million second-lien
credit.
All the companies are subsidiaries of closely held Centaur Inc.,
which isn't in bankruptcy.
CENTERVILLE PARTNERS: Files for Bankruptcy in Utah
--------------------------------------------------
Centerville Partners LC filed for Chapter 11 bankruptcy protection
in Salt Lake City (Bankr. D. Utah Case No. 10-30978), listing
assets of as much as $10 million and liabilities totaling as much
as $50 million. The largest unsecured creditor is Geary
Construction, owed $150,000. Centerville is a Sandy, Utah-based
real-estate company.
CENTRAL PARKING: Extends & Amends Debt Facilities
-------------------------------------------------
Central Parking Corporation has entered into a Second Amendment to
its operating company's First Lien Credit and Guarantee Agreement,
effective August 13, 2010. This amendment provided for a waiver
of the June 30, 2010 financial covenant and modification of future
financial covenants, as well as certain other changes. Going
forward, this amendment will provide the Company with the
financial flexibility and liquidity that it has enjoyed to-date.
In addition to the amendment to the operating company debt
agreement, the Company has executed a two-year extension through
June 2012 of its property company's debt, which is secured by real
property owned by the property company. The extension, by way of
the Third Amendment to the Loan Agreement and Promissory Note and
the Fourth Amendment to the Mezzanine Loan Agreement and
Promissory Note, will allow the Company to execute its plans for
its owned real property.
John Hill, Senior Vice President and Chief Financial Officer
commented, "Together, these three amendments of the Company's
credit facilities, which represent all of the outstanding debt of
the Company, ensure ongoing liquidity and financial flexibility
for Central Parking, as well as demonstrates the support of the
lenders and investors of our strategic direction and business
plans."
Jim Marcum, Central Parking's President and Chief Executive
Officer, since February, 2010, said, "This was an important step
in facilitating Central Parking's strategic plans for the future."
Mr. Marcum continued, "With these amendments, along with the
support of our equity investors, we are well positioned to execute
our growth strategies, through both organic activities and
strategic acquisitions. In addition, we are focused on taking
advantage of what appears to be improving market conditions and
are accelerating our investment in a number of technological and
organizational enhancements. All of these measures will serve to
enhance Central Parking's ability to continue to provide best in
class service to our clients and customers."
About Central Parking
Central Parking -- http://www.parking.com/-- is a leader in
parking management and marketing, serving large and small property
owners, infrastructure funds and governmental clients to maximize
service, revenue and value in all geographies and service sectors
including: mixed-use developments, office buildings, hotels,
stadiums and arenas, airports, hospitals, universities and
municipalities. With offices in most major metropolitan areas in
the United States, the Company operates approximately 2,300
parking facilities containing 1.1 million spaces and its service
brands include: Central Parking System, USA Parking, CPS Parking
and New South Parking.
* * *
As reported in the Troubled Company Reporter on March 30, 2010,
Moody's Investors Service downgraded to B3 from B2 the Corporate
Family Rating, Probability of Default Rating, and second lien term
loan rating of Central Parking Corporation. Concurrently, the
first lien credit facility rating was lowered to Ba3 from Ba2 and
the ratings outlook was changed to negative from stable.
CHEMTURA CORP: Bingham McCutchen Represents BKK, et al.
-------------------------------------------------------
Bingham McCutchen LLP, pursuant to Rule 2019 of the Federal Rules
of Bankruptcy Procedure, reveals that it represents these parties
in Chemtura Corp.'s Chapter 11 cases:
1. The BKK Joint Defense Group and certain of its members
2. The ILCO Site Remediation Group and certain of its members
3. The Cooper Drum Cooperating Parties Group and certain of
its members
Bingham McCutchen further discloses that:
1. BKK has a direct claim against the Debtors under the
Comprehensive Environmental Response, Compensation and
Liability Act, for recovery of costs totaling $50,000,000
incurred in the cleaning of waste deposited by the Debtors
at a certain BKK facility. BKK estimates that it will
incur more cost in excess of $600,000,000 in the future.
2. ILCO has direct claims against the Debtors due to alleged
breached of prepetition contracts under CERCLA based on
Chemtura's prepetition contribution of hazardous waste at
an ILCO facility. ILCO estimates future costs to be
$31,816,555. However, if the contract is assumed, the
Debtors' liability would be $732,973.
3. Cooper Drum has a direct claim against Chemtura Corporation
under CERCLA for recovery of costs at a Cooper Drum
Facility. The company asserts past recoverable costs
exceeding $12,000,000 and future costs amounting more than
$30,000,000.
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)
CHEMTURA CORP: Canadian Unit Intends to Pay Unimpaired Claims
-------------------------------------------------------------
Chemtura Corp. and its units have obtained an interim order from
the U.S. Bankruptcy Court authorizing Chemtura Canada Co./Cie to
satisfy or honor all unimpaired claims in the ordinary course of
business.
Richard M. Cieri, Esq., at Kirkland & Ellis LLP, in New York,
asserts that permitting Chemtura Canada to honor all Unimpaired
Claims during its Chapter 11 case will ensure that the Debtor's
vendors and customers maintain confidence in their relationship
with the Debtor and continue to do business with it and will
facilitate positive, business-as-usual relationships with
regulators, unions, employees and other business-critical
constituencies.
The Debtors believe that paying holders of Unimpaired Claims in
the ordinary course of business, as opposed to waiting until the
Effective Date of the Original Debtors' Chapter 11 Plan of
Reorganization, will minimize disruption to Chemtura Canada's
businesses during its brief Chapter 11 case.
The Unimpaired Claims consist of various general unsecured,
secured and priority claims that arise from Chemtura Canada's
day-to-day operations. They include:
(a) claims arising from employee wage and benefit obligations;
(b) claims arising from goods and services provided by various
vendors and suppliers;
(c) claims arising from tax obligations; and
(d) claims arising from environmental obligations.
Chemtura Canada assures the Court that it will be able to pay
Unimpaired Claims as they come due in the ordinary course of
business through a combination of cash on hand, cash received
from operations and borrowings from Chemtura Corporation.
The Debtors have analyzed the six-month outflow of cash in the
ordinary course of business from Chemtura Canada's two bank
accounts, which is an average of approximately US$7,300,000 and
C$4,600,000, Mr. Cieri discloses.
Based on that analysis, the Debtors estimate that the total
amount of prepetition obligations on account of Unimpaired Claims
that Chemtura Canada will pay or otherwise honor during its
Chapter 11 case is approximately C$4,200,000, Mr. Cieri says.
The Court further directs financial institutions at which
Chemtura Canada maintains its accounts relating to the payment of
the obligations to honor checks presented for payment of Chemtura
Canada's obligations and all related fund transfer requests made
by Chemtura Canada to the extent sufficient funds are on deposit
in the accounts.
Chemtura Canada is also authorized, but not directed, to issue
postpetition checks, or to effect postpetition fund transfer
requests, in replacement of any checks or fund transfer requests
in respect of prepetition payments to holders Unimpaired Claims
that are dishonored or rejected.
Any objections to the Debtors' request on a permanent basis must
be filed no later than September 9, 2010 at 4:00 p.m. Eastern
Daylight Time. If an objection is timely filed and served so as
to be received on or before the Objection Deadline, the objection
will be set for hearing on September 16, 2010.
If no objections are timely filed and served, then the Interim
Order will become a final order as of the day immediately after
the Objection Deadline, nunc pro tunc to the Petition Date,
without further hearing or order of the Court.
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)
CIELO TOWER: Voluntary Chapter 11 Case Summary
----------------------------------------------
Debtor: Cielo Tower LLC
1801 Wilshire Boulevard
Los Angeles, CA 90057
Tel: (213) 353-0777
Bankruptcy Case No.: 10-43975
Chapter 11 Petition Date: August 13, 2010
Court: U.S. Bankruptcy Court
Central District of California (Los Angeles)
Judge: Samuel L. Bufford
Debtor's Counsel: Robert Y. Lee, Esq.
LEE LAW GROUP APLC
3699 Wilshire Boulevard, Suite 1100
Los Angeles, CA 90010
Tel: (213) 383-5400
Fax: (213) 383-5402
E-mail: robert@lgcounsel.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
The list of unsecured creditors filed together with its petition
does not contain any entry.
The petition was signed by Judy A. Kim.
CLEMENT CARINALLI: Creditors to Vote on Restructuring Plan
----------------------------------------------------------
Nathan Halverson at the Press Democrat reports that a federal
bankruptcy judge approved the disclosure statement explaining the
Chapter 11 restructuring plan of Clement and Marie Carinalli.
The Official Committee of Unsecured Creditors and the Debtors
announced June 30 that they reached an agreement on the terms of a
joint plan. Under the plan, the Committee's designee, a
liquidating trustee, will assume control over the bulk of the
valuable assets in the Debtors' estate and will begin working for
creditors in an effort to maximize distributions in a reasonable
time frame. The plan creates an early pay-out option whereby
certain unsecured creditors can choose to receive a 10% recovery
within 18 months. Those who decide to wait will likely recover
more, but over a considerably longer period of time that could
span 5 years, according to statement.
The Press Democrat relates that the controversial elements of the
Plan, which provides for details on how the Debtors would repay
$194 million in debts, include a proposal to pay Mr. Carinalli
$15,000 a month to work as consultant for a woman hired to sell
off the assets, and entitlement of Mr. Carinalli to bonuses
following a pay-out to creditors.
About Clem Carinalli
On Sept. 14, 2009, an involuntary chapter 7 bankruptcy petition
was filed against Sonoma, California's biggest real estate
investor Clement C. Carinalli and his wife, Ann Marie Carinalli,
(Bankr. N.D. Calif. Case No. 09-12986). On Sept. 29, 2009, the
case was converted to Chapter 11. The Carinallis are now joint
debtors in possession. Honorable Alan Jaroslovsky is the
presiding judge.
The Official Committee of Unsecured Creditors formed in the
Carinalli case selected Pachulski Stang Ziehl & Jones --
http://www.pszjlaw.com/creditor-20.html-- as Committee counsel.
John Fiero and Max Litvak are the principal attorneys at PSZJ
responsible for the engagement.
DBSI INC: May Begin Soliciting Votes for Liquidating Plan
---------------------------------------------------------
Dow Jones DBR Small Cap reports that Judge Peter J. Walsh of the
U.S. Bankruptcy Court in Wilmington, Del., on Monday approved the
disclosure statement explaining DBSI Inc.'s Chapter 11 plan of
liquidation. The ruling paves the way for creditors to begin
voting on the plan, which Judge Walsh agreed to consider
confirming at an Oct. 5 hearing. The official tasked with
liquidating DBSI, Chapter 11 trustee James R. Zazzali, drafted the
plan with help of the official committee representing DBSI's
unsecured creditors. They've previously warned other creditors
that failure to support the plan could spur years of litigation
over the impossible task of unraveling numerous transactions made
between the company and its affiliates.
As reported by the Troubled Company Reporter on July 21, 2010,
Bill Rochelle at Bloomberg News said the Chapter 11 trustee for
DBSI and the Official Committee of Unsecured Creditors jointly
filed a liquidating Chapter 11 plan on July 16 along with the
disclosure statement. The disclosure statement predicts an 18.5%
recovery for many creditors.
Bloomberg noted that the trustee filed a motion in January for
substantive consolidation of all the DBSI companies. He concluded
that the company was managed with disregard for "corporate
separateness," such that money was moved around as needed to keep
the shell game alive. The plan treats all creditors alike,
regardless of whether they hold claims for notes or bonds or
thought they were supposed to be tenants in common in specified
properties.
Bankruptcy Law360 reports that the DBSI trustee aims to set up
liquidation trusts.
About DBSI Inc.
Headquartered in Meridian, Idaho, DBSI Inc. and its affiliates
were engaged in numerous commercial real estate and non-real
estate projects and businesses. On November 10, 2008, and other
subsequent dates, DBSI and 180 of its affiliates filed for Chapter
11 protection (Bankr. D. Del. Case No. 08-12687). Lawyers at
Young Conaway Stargatt & Taylor LLP represent the Debtors as
counsel. The Official Committee of Unsecured Creditors tapped
Greenberg Traurig, LLP, as its bankruptcy counsel. Kurtzman
Carson Consultants LLC is the Debtors' notice claims and balloting
agent. When the Debtors sought protection from their creditors,
they estimated assets and debts between $100 million and $500
million. Joshua Hochberg, a former head of the Justice Department
fraud unit, served as an Examiner and called the seller and
servicer of fractional interests in commercial real estate an
"elaborate shell game" that "consistently operated at a loss" in
his report released in Oct. 2009. On Sept. 11, 2009, the
Honorable Peter J. Walsh entered an Order appointing James R.
Zazzali as Chapter 11 trustee for the Debtors' estates.
DENBURY RESOURCES: S&P Affirms 'BB' Rating on Senior Debt
---------------------------------------------------------
Standard & Poor's Ratings Services revised its recovery rating on
Denbury Resources Inc.'s senior subordinated debt. S&P revised
the recovery on this debt to '4', indicating the expectation for
average (30% to 50%) recovery in the event of a payment default,
from '3'. The issue-level rating remains unchanged at 'BB'.
"S&P is lowering its estimate of the value of the company in a
default scenario, to reflect the impact from the company's sale of
Permian, Mid-Continent, and East Texas basin assets, which it
closed on May 18, 2010. It also excludes the value related to
Encore Energy Partners, as Denbury is currently exploring a sale
of its stake in the unit," said Standard & Poor's credit analyst
Marc Bromberg.
The corporate credit rating on Denbury, an oil and gas exploration
and production company, is 'BB'. The outlook is stable.
Ratings List
Denbury Resources Inc.
Corporate Credit Rating BB/Stable/--
Recovery Rating Revised
To From
-- ----
Recovery Rating 4 3
Rating Affirmed
Senior Subordinated Debt BB
DIJAN INC: Files for Chapter 11 Bankruptcy Protection
-----------------------------------------------------
Dijan Inc. filed for Chapter 11 in Wilkes-Barre, Pennsylvania
(Bankr. M.D. Pa. 10-06556), listing assets of $2.91 million and
liabilities of $5.87 million.
Dijan Inc. is a franchisee of 14 Arby's fast-food restaurants.
James Haggerty, staff writer at The Times-Tribune, reports that
the Company listed, among its assets, stores in Kingston,
Schuylkill County, West Virginia and Virginia, worth
$2.25 million.
The Times-Tribune reports that the Company owes $2.92 million to
largest secured creditor Wachovia Bank. The Company also owes
$738,022 to Department of Revenue; $478,251, Internal Revenue
Service; and $228,935, West Virginia state tax department.
The Company said it was hit a $196,099 federal tax lien in June,
according to the report.
DUTCH GOLD: Files Amended 10-Q for Q1 2010; Reports $3.2MM Loss
---------------------------------------------------------------
Dutch Gold Resources, Inc., filed on August 11, 2010, an amended
quarterly report on Form 10-Q/A for the three months ended
March 31, 2010.
The Company reported a net loss of $3.17 million for the three
months ended March 31, 2010, compared with a net loss of $942,189
for the same period of 2009. The Company had no revenue in Q1
2010 and Q1 2009.
The Company's balance sheet as of March 31, 2010, showed
$2.36 million in total assets, $5.80 million in total liabilities,
and a stockholders' deficit of $3.44 million.
Gruber & Company, LLC, in Lake Saint Louis, Mo., expressed
substantial doubt about the Company's ability to continue as a
going concern in its audit report for the fiscal year ending
December 31, 2009. The independent auditors noted that the
Company has incurred operating losses from its inception and is
dependent upon its ability to meet its future financing
requirements, and the success of future operations.
A full-text copy of the Form 10-Q/A is available for free at:
http://researcharchives.com/t/s?6913
About Dutch Gold
Based in Atlanta, Ga., Dutch Gold Resources, Inc. (OTC: DGRI)
-- http://www.dutchgoldresources.com/-- is a junior gold miner
focused on developing its existing mining properties in North
America and acquiring and developing new mines that can enter into
production in 12 to 24 months.
DUTCH GOLD: Posts $540,600 Net Loss in Q2 Ended June 30
-------------------------------------------------------
Dutch Gold Resources, Inc., filed its Form 10-Q, disclosing a net
loss of $540,624 for the three months ended June 30, 2010,
compared with a net loss of $2.8 million for the same period of
2009. The Company had no revenue in Q2 2010 and Q2 2009.
Assuming that the Company is successful raising funds, it
anticipates incurring operating expenses of $2.0 million during
the next 12 months to fund the costs relating to the development
of its properties and the identification of new acquisitions.
The Company's balance sheet as of June 30, 2010, showed
$2.1 million in total assets, $5.5 million in total liabilities,
and a stockholders' deficit of $3.4 million.
Gruber & Company, LLC, in Lake Saint Louis, Mo., expressed
substantial doubt about the Company's ability to continue as a
going concern in its audit report for the fiscal year ending
December 31, 2009. The independent auditors noted that the
Company has incurred operating losses from its inception and is
dependent upon its ability to meet its future financing
requirements, and the success of future operations.
A full-text copy of the Form 10-Q is available for free at:
http://researcharchives.com/t/s?6914
About Dutch Gold
Based in Atlanta, Ga., Dutch Gold Resources, Inc. (OTC: DGRI)
-- http://www.dutchgoldresources.com/-- is a junior gold miner
focused on developing its existing mining properties in North
America and acquiring and developing new mines that can enter into
production in 12 to 24 months.
EASTON-BELL SPORTS: Posts $4.96-Mil. Net Income in July 3 Qtr.
--------------------------------------------------------------
Easton-Bell Sports Inc. filed its quarterly report on Form 10-Q,
reporting a $4.96 million net income on $202.76 million of net
sales for the first quarter ended July 3, 2010, compared with a
$3.89 million net income on $187.29 million of net sales for the
first quarter ended July 4, 2009.
The Company's balance sheet at June 30, 2010, showed
$969.96 million in total assets, $601.65 million in total
liabilities, and $368.30 million total stockholder's equity.
As reported in TCR on Aug. 16, the Company said that net sales of
$202.8 million for the second quarter ended July 3, 2010 increased
of 8.3% from $187.3 million of net sales in the second quarter of
fiscal 2009. The Company generated operating income of $20.1
million for the second quarter of fiscal 2010, an increase of
36.0% as compared to $14.8 million of operating income in the
second quarter of fiscal 2009.
A full-text copy of the Company's earnings release is available
for free at http://ResearchArchives.com/t/s?68e5
A full-text copy of the Company's Form 10-Q is available for free
at http://ResearchArchives.com/t/s?68fb
About Easton-Bell Sports
Easton-Bell Sports, Inc. -- http://www.eastonbellsports.com/--
designs, develops and markets innovative sports equipment,
protective products and related accessories under authentic
brands. The Company markets and licenses products under such
well-known brands as Easton, Bell, Riddell, Giro and Blackburn.
Headquartered in Van Nuys, California, the Company has 29
facilities worldwide.
* * *
Easton Bell has 'B3' corporate family and probability of default
ratings, with "positive" outlook, from Moody's Investors Service.
It has 'B-' issuer credit ratings, with "positive" outlook, from
Standard & Poor's.
ELLICOTT SPRINGS: Amends List of Largest Unsecured Creditors
------------------------------------------------------------
Ellicott Springs Resources, LLC, filed with the U.S. Bankruptcy
Court for the District of Colorado amended list of its largest
unsecured creditors.
A full-text copy of the amended list is available for free at:
http://bankrupt.com/misc/codb10-13116_amended.pdf
Colorado Springs, Colorado-based Ellicott Springs Resources, LLC,
filed for Chapter 11 bankruptcy protection on February 19, 2010
(Bankr. D. Colo. Case No. 10-13116). The Company disclosed
$21,940,030 in total assets and $8,411,246 in total liabilities.
Ellicott Springs Development, LLC; PLW, Inc. (Case No. 10-13114);
and Rodney J. Preisser (Case No. 10-13110) filed for separate
Chapter 11 petitions. These Debtors are also based in Colorado
Springs, Colorado, and each estimated assets and debts at
$10 million to $50 million.
Lee M. Kutner, Esq., who has an office in Denver, Colorado,
assists the Debtors in their restructuring efforts.
EMAK WORLDWIDE: Amends List of Largest Unsecured Creditors
----------------------------------------------------------
EMAK Worldwide, Inc., has filed with the U.S. Bankruptcy Court for
the Central District of California an amended list of its largest
unsecured creditors, disclosing:
Entity Nature of Claim Claim Amount
------ --------------- ------------
Bouchard Margules &
Friedlander
Attn: J. Friedlander, Esq.
222 Delaware Avenue, Suite 1400
Wilmington, DE 19801 Judgment $2,500,000
Wells Fargo Securities, LLC
(as successor to Barrington
Associates)
c/o Michael Gold, Esq.
1900 Avenue of the Stars,
7th Floor
Los Angeles, California 90067 Contingency Fees $1,000,000
Ropes & Gray LLP
Attn: Authorized Agent
One International Place
Boston, MA 02110-2624 Legal Fees $411,028
Ashby & Geddes
Attn: Authorized Agent
500 Delaware Avenue
Wilmington, DE 19899 Legal Fees $404,173
Gibson, Dunn & Crutcher LLP
Attn: Authorized Agent
1801 CA Street Suite 4200
Denver, CO 80202-2694 Legal Fees $368,333
Sanders, Michael
1281 Keats Street
Manhattan Beach, CA 90266 Compensation $251,160
Johnson, Duane Compensation $227,849
Morris Nichols Arsht &
Tunnel Legal Fees $207,331
Dar, Roy Compensation $206,083
Latham & Watkins Legal Fees $97,903
Monacos, Christie Compensation $80,120
Carillo Foster LLC Rent $75,000
Klein, Mui Compensation $69,340
JH Cohn LLP Audit Fees $67,505
City of Los Angeles Taxes $102,873
Roberts, Martha Compensation $57,868
Francisco, Ellen Compensation $53,650
Steven J. Vallen Tax Consulting $52,100
Jose Figueroa Compensation $48,510
Patrick Hanrahan Compensation $28,037
Connolly Bove Lodge Legal Fees $22,525
Los Angeles, California-based EMAK Worldwide, Inc., a Delaware
corporation, fka Equity Marketing, Inc., filed for Chapter 11
bankruptcy protection on August 5, 2010 (Bankr. C.D. Calif. Case
No. 10-42779). Jeffrey M. Reisner, Esq., at Irell & Manella LLP,
assists the Debtor in its restructuring effort. The Debtor
estimated its assets and debts at $10 million to $50 million as of
the Petition Date.
An affiliate, EMAK Worldwide Service Corp., A Delaware
Corporation, filed a separate Chapter 11 petition on August 5,
2010 (Bank. C.D. Calif. Case No. 10-42784), estimating its assets
and debts at $10 million to $50 million.
EMAK WORLDWIDE: Section 341(a) Meeting Scheduled for Sept. 30
-------------------------------------------------------------
The U.S. Trustee for Region 16 will convene a meeting of EMAK
Worldwide, Inc.'s creditors on September 30, 2010, at 10:00 a.m.
The meeting will be held at 725 S Figueroa Street, Room 2610, Los
Angeles, CA 90017.
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.
Los Angeles, California-based EMAK Worldwide, Inc., a Delaware
corporation, fka Equity Marketing, Inc., filed for Chapter 11
bankruptcy protection on August 5, 2010 (Bankr. C.D. Calif. Case
No. 10-42779). Jeffrey M. Reisner, Esq., at Irell & Manella LLP,
assists the Debtor in its restructuring effort. The Debtor
estimated its assets and debts at $10 million to $50 million as of
the Petition Date.
An affiliate, EMAK Worldwide Service Corp., A Delaware
Corporation, filed a separate Chapter 11 petition on August 5,
2010 (Bank. C.D. Calif. Case No. 10-42784), estimating its assets
and debts at $10 million to $50 million.
EMPIRE RESORTS: Posts $8.59 Million Net Loss for June 30 Quarter
----------------------------------------------------------------
Empire Resorts Inc. filed its quarterly report on Form 10-Q,
reporting a net loss of $8.59 million on $17.58 million of net
revenues for the three months ended June 30, 2010, compared with a
net loss of $4.22 million on $16.77 million of net revenues during
the same period a year ago.
The Company's balance sheet at June 30, 2010, showed
$85.95 million in total assets, $73.60 million in total
liabilities, and a $12.35 million total stockholders' equity.
Under the terms of its 65 million of 5.5% senior convertible
notes, the Company had had an obligation to repurchase any of the
Notes at a price equal to 100% of their principal amount on July
31, 2009; to the extent that the Holder, as defined under the
indenture dated July 26, 2004, delivered a properly executed Put
Notice, as defined under the Indenture. The Company sought a
judicial determination, in the Supreme Court of New York, Sullivan
County, against the beneficial owners of the Notes, as well as The
Depository Trust Company and the Bank of New York Mellon
Corporation. On April 8, 2010, the Company received a decision
from the Court that determined that the Defendants properly
exercised the option requiring the Company to repurchase the
Notes, that the Company is in default under the Notes with respect
to our failure to repurchase the Notes on July 31, 2009 and that
we must now repurchase the Notes. On May 11, 2010, the COmpany
filed a notice of appeal with the Third Judicial Department of the
Appellate Division of the Supreme Court of the State of New York
to appeal the Decision.
The Company is working with its financial advisor, Merrill Lynch,
Pierce, Fenner & Smith Incorporated, and its legal counsel to
consider available financial and legal alternatives in the event
that a final non-appealable ruling is issued declaring that the
right to demand repayment of the Notes had been validly exercised.
In connection with settlement discussions with the holders of the
Notes, the Company redeemed $5 million principal amount of the
Notes on July 30, 2010 and an additional $5 million principal
amount of the Notes on August 12, 2010.
A full-text copy of the Company's Form 10-Q is available for free
at http://ResearchArchives.com/t/s?6908
About Empire Resorts
Based in Monticello, New York, Empire Resorts, Inc. (NASDAQ: NYNY)
-- http://www.empireresorts.com/-- currently owns and operates
Monticello Casino & Raceway, a video gaming machine and harness
racing track and casino located in Monticello, New York, 90 miles
northwest of New York City.
Auditor Friedman LLP, in New York, after auditing the Company's
2009 results, said Empire Resorts' ability to continue as a going
concern depends on the Company's ability to fulfill its
obligations with respect to its $65 million of 5-1/2% senior
convertible notes. Friedman also noted of the Company's
continuing net losses and negative cash flows from operating
activities.
As reported by the Troubled Company Reporter, Empire Resorts on
April 8, 2010, received the Decision, Order and Judgment from the
Supreme Court of the State of New York in Sullivan County granting
defendants', The Bank of New York Mellon Corporation and The
Depository Trust Company, motion for summary judgment in the
action captioned Empire Resorts, Inc. v. The Bank of New York
Mellon Corporation and The Depository Trust Company. The Decision
provides that the Court has determined that the Defendants
properly exercised the option requiring the Company to repurchase
$65 million of 5-1/2% senior convertible notes issued by the
Company in July 2004, that the Company is in default under the
Notes with respect to its failure to repurchase the Notes on July
31, 2009, and that the Company must now repurchase the Notes. The
TCR said the Company is working with its financial advisor,
Merrill Lynch, Pierce, Fenner & Smith Incorporated, and its legal
counsel to consider its available financial and legal alternatives
in response to the Decision.
EVERGREEN INT'L FUND: Liquidation Completed August 16
-----------------------------------------------------
The Evergreen International Balanced Income Fund was liquidated
after the close of business on August 16, 2010. Shares of the
Fund ceased trading on the New York Stock Exchange at that time.
As of the close of business on August 16, 2010, the net asset
value (NAV) of the Evergreen International Balanced Income Fund
was $15.88. Shareholders will receive a liquidating distribution
equal to the NAV of their investments in the Fund as of the close
of business on August 16, 2010. The Board of Trustees of the
Evergreen International Balanced Income Fund approved the
liquidation of the Fund on July 16, 2010.
Any information regarding the tax characterization of the
liquidating distribution will be provided in conjunction with the
completion and provision of Form 1099-DIV to shareholders.
The Fund's shares are no longer offered as an initial public
offering and are only offered through broker/dealers on the
secondary market.
About Evergreen Investments
Evergreen Investments is one of the brand names under which Wells
Fargo & Company conducts its investment management business and is
part of the Wells Fargo Asset Management Group. Wells Fargo &
Company is a diversified financial services company with $1.2
trillion in assets as of June 30, 2010, providing banking,
insurance, investments, mortgage and consumer finance through
almost 10,000 stores and the internet across North America and
internationally. The Wells Fargo Asset Management Group serves
individual and institutional investors through a broad range of
investment products and strives to meet client investment
objectives through disciplined, team-based asset management.
Evergreen InvestmentsSM is a service mark of Evergreen Investment
Management Company, LLC.
FAIRFAX CROSSING: Files Schedules of Assets and Liabilities
-----------------------------------------------------------
Fairfax Crossing II LLC, filed with the U.S. Bankruptcy Court for
the Northern District of West Virginia its schedules of assets and
liabilities, disclosing:
Name of Schedule Assets Liabilities
---------------- ----------- -----------
A. Real Property $14,330,000
B. Personal Property $9,940,748
C. Property Claimed as
Exempt
D. Creditors Holding
Secured Claims $4,965,232
E. Creditors Holding
Unsecured Priority
Claims $107,202
F. Creditors Holding
Unsecured Non-priority
Claims $516,756
----------- -----------
TOTAL $24,270,748 $5,589,190
Charles Town, West Virginia-based Fairfax Crossing II LLC filed
for Chapter 11 bankruptcy protection on June 29, 2010 (Bankr. N.D.
W.V. Case No. 10-01368). Richard G. Gay, Esq., assists the Debtor
in its restructuring effort. The Company estimated assets at $10
million to $50 million in assets and $1 million to $10 million in
liabilities.
An affiliate, Turf LLC, filed a separate Chapter 11 petition on
April 29, 2010 (Bankr. N.D. W.V. Case No. 10-00970).
FISHERMAN'S WHARF: Amends Schedules of Assets and Liabilities
-------------------------------------------------------------
Fisherman's Wharf of Venice, Inc., filed with the U.S. Bankruptcy
Court for the Middle District of Florida amended schedules of
assets and liabilities, disclosing:
Name of Schedule Assets Liabilities
---------------- ----------- -----------
A. Real Property $15,820,000
B. Personal Property $170,500*
C. Property Claimed as
Exempt
D. Creditors Holding
Secured Claims $7,847,321*
E. Creditors Holding
Unsecured Priority
Claims $533,449
F. Creditors Holding
Unsecured Non-priority
Claims $5,473,220
----------- -----------
TOTAL $15,990,500 $13,853,990
* In the Debtor's previous schedules, it disclosed personal
property of $150,000 and creditors holding secured claims of
$8,035,192.
Venice, Florida-based Fisherman's Wharf of Venice, Inc. filed for
Chapter 11 on May 4, 2010 (Bankr. M.D. Fla. Case No. 10-10694.)
H. Bradley Staggs, Esq. at Bush Ross, P.A., assists the Debtor in
its restructuring effort. In its petition, the Debtor estimated
assets and debts both ranging from $10 million to $50 million.
FISHERMAN'S WHARF: Plan Confirmation Hearing Set for September 20
-----------------------------------------------------------------
The Hon. Caryl E. Delano of the U.S. Bankruptcy Court for the
Middle District of Florida will consider on September 20, 2010, at
2:00 p.m., the confirmation of Fisherman's Wharf of Venice, Inc.,
et al.'s Plan of Reorganization. The hearing will be held at
Courtroom 10B, Sam M. Gibbons United States Courthouse, 801 N.
Florida Avenue, Tampa, Florida. Objections, if any, are due seven
days prior to hearing date.
Written ballots accepting or rejecting the Plan are due
September 12, eight days before confirmation hearing.
According to the Disclosure Statement, the essential elements
contemplated by the Plan include, among other things (a) the
payment of Claims in accordance with the requirements of the
Bankruptcy Code; and (b) the continuation of the businesses of the
Debtors.
The Plan provides for, among other things, distribution of cash to
satisfy in full allowed administrative expense claims, allowed
priority tax claims and allowed priority claims. The Plan also
provides for a 100% distribution of cash to the holders of allowed
general unsecured claims, the Witzer deficiency claim and allowed
secured claims. Additionally, on the effective date, all
interests will be retained, unaltered; provided, however, that no
distributions will be made to holders of interests under the Plan
until all senior allowed claims are satisfied in full.
A full-text copy of the Disclosure Statement is available for free
at http://bankrupt.com/misc/FISHERMANSWHARF_DS.pdf
The Debtors are represented by:
H. Bradley Staggs, Esq.
Bush Ross, P. A.
P.O. Box 3913
Tampa, FL 33601-3913
Tel: (813) 224-9255
Fax: (813) 223-9620
About Fisherman's Wharf of Venice, Inc.
Venice, Florida-based Fisherman's Wharf of Venice, Inc., filed for
Chapter 11 on May 4, 2010 (Bankr. M.D. Fla. Case No. 10-10694).
In its schedules, the Company disclosed $15,990,500 in total
assets and $13,853,990 in total liabilities as of the Petition
Date.
GENTA INC: June 30 Balance Sheet Upside-Down by $127.4-Mil.
-----------------------------------------------------------
Genta Incorporated's balance sheet at June 30, 2010, showed
$24.11 million in total assets, $6.39 million in total current
liabilities, $145.17 million in total long-term liabilities, and a
stockholders' deficit of $127.44 million.
At June 30, 2010, Genta had cash and cash equivalents totaling
$15.6 million, compared with $1.2 million at December 31, 2009.
Net cash used in operating activities for the 6 month period
ending June 30, 2010 was $6.3 million. The Company projects that
its average net monthly cash outflow will be approximately $1.2
million for the balance of 2010.
The Company reported net income of $25.4 million for the second
quarter of 2010, compared with a net loss of $43.1 million for the
second quarter of 2009. For the six months ended June 30, 2010,
the Company reported a net loss of $141.2 million compared with a
net loss of $54.1 million for the six months ended June 30, 2009.
The results for the second-quarter and six months ended June 30,
2010 and 2009, respectively, include the impact of the mark-to-
market accounting for the liabilities for the conversion features
of its notes, debt warrants and warrants that were issued in its
financings, including the financing that was closed in March 2010.
These liabilities fluctuate according to the price of Genta's
common stock, and as a consequence, these fluctuations have caused
the Company to report positive net income for the second quarter
of 2010.
In June 2010, the Company received stockholder approval for a
reverse stock split of its common stock. Subsequently, a 1-for-
100 reverse stock split was approved by the Company's Board of
Directors and became effective on August 2, 2010. All share and
per share data included in this press release have been
retroactively adjusted to account for the effect of the
aforementioned reverse stock split for all periods presented.
A full-text copy of the Company's earnings release is available
for free at http://ResearchArchives.com/t/s?6905
A full-text copy of the Company's Form 10-Q is available for free
at http://ResearchArchives.com/t/s?6906
About Genta
Berkeley Heights, New Jersey, Genta Incorporated (OTCBB: GETA.OB)
-- http://www.genta.com/-- is a biopharmaceutical company with a
diversified product portfolio that is focused on delivering
innovative products for the treatment of patients with cancer.
Genta reported a net loss of $86.301 million for the year ended
December 31, 2009, from a net loss of $505.838 million for 2008.
GEOEYE INC: Satellite Contract Won't Affect Moody's Ratings
-----------------------------------------------------------
Moody's Investors Service said that Geoeye Inc.'s ratings are not
impacted by National Geospatial-Intelligence Agency's award of a
new contract for satellite imagery and related services. In
Moody's view, despite the demonstration of strong ongoing support
from the US government agencies, the greater future revenue
certainty provided by the contract is neutralized by the capital
spending the company is undertaking to build the next generation
Geoeye-2 imaging satellite over the next three years in order to
fulfill its service obligations under the contract.
Moody's most recent rating action for Geoeye was on September 17,
2009. At that time Moody's upgraded the company's corporate
family rating to B1 from Caa1, due to improving credit profile
following the successful launch and deployment of its Geoeye-1
satellite.
GRACE SCARPA: Case Summary & 20 Largest Unsecured Creditors
-----------------------------------------------------------
Debtor: Grace Margaret Scarpa
P.O. Box 49012
Jacksonville Beach, FL 32240
Bankruptcy Case No.: 10-07068
Chapter 11 Petition Date: August 13, 2010
Court: U.S. Bankruptcy Court
Middle District of Florida (Jacksonville)
Debtor's Counsel: Bryan K. Mickler, Esq.
5452 Arlington Expressway
Jacksonville, FL 32211
Tel: (904) 725-0822
Fax: (904) 725-0855
E-mail: court@planlaw.com
Scheduled Assets: $490,655
Scheduled Debts: $1,062,492
A list of the Debtor's 20 largest unsecured creditors
filed together with the petition is available for free
at http://bankrupt.com/misc/flmb10-07068.pdf
GRAY TELEVISION: Posts $534,000 Net Income for June 30 Quarter
--------------------------------------------------------------
Gray Television Inc. reported net income of $534,000 on
$75.63 million of revenues for the three months ended June 30,
2010, compared with net loss of $6.65 million on $65.06 million of
revenues for the same period a year ago.
Total revenue increased $10.6 million, or 16%, to $75.6 million
for the three-month period ended June 30, 2010 compared to the
three-month period ended June 30, 2009 reflecting increases in
local, national, internet and political advertising revenue,
retransmission consent revenue, production and other revenue and
consulting revenue.
The Company's balance sheet at June 30, 2010, showed $1.24 billion
in total assets, $1.09 billion in total liabilities, and a
$108.09 million stockholders' equity. At March 31, 2010, the
Company had stockholders' equity of $88.140 million.
The Company added that as of June 30, 2010 and 2009, it employed
2,176 and 2,216 employees, respectively, in its broadcast
operations. Since December 31, 2007, it has decreased the total
number of employees in its broadcast operations by 249 persons, a
decrease of 10.3%.
A full-text copy of the Company's Form 10-Q is available for free
at http://ResearchArchives.com/t/s?690e
A full-text copy of the Company's earnings release is available
for free at http://ResearchArchives.com/t/s?690f
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.
* * *
Gray Television carries a 'B-' corporate credit rating from
Standard & Poor's, and a 'Caa1' probability of default rating from
Moody's Investors Service. S&P said in May 2010, "[The] 'B-'
rating reflects Gray's very high debt leverage, minimal EBITDA
coverage of interest, and the mature and cyclical nature of TV
advertising. Minimal positive factors are the strong market
positions of Gray's major network-affiliated TV stations and the
good geographic diversification of its station portfolio."
HILL TOP: Files Schedules of Assets and Liabilities
---------------------------------------------------
Hill Top Farm, Ltd., filed with the U.S. Bankruptcy Court for the
Western District of Texas its schedules of assets and liabilities,
disclosing:
Name of Schedule Assets Liabilities
---------------- ----------- -----------
A. Real Property $15,078,090
B. Personal Property $2,027,299
C. Property Claimed as
Exempt
D. Creditors Holding
Secured Claims $4,111,256
E. Creditors Holding
Unsecured Priority
Claims $19,291
F. Creditors Holding
Unsecured Non-priority
Claims $85,169
----------- -----------
TOTAL $17,105,389 $4,215,716
San Antonio, Texas-based Hill Top Farm, Ltd., filed for Chapter 11
bankruptcy protection on July 2, 2010 (Bankr. W.D. Tex. Case No.
10-52526). William B. Kingman, Esq., in San Antonio, Texas,
assists the Debtor in its restructuring effort. The Company
estimated assets at $10 million to $50 million and liabilities at
$1 million to $10 million in its Chapter 11 petition.
HILL TOP: Taps The Law Offices of William B. Kingman as Counsel
---------------------------------------------------------------
Hill Top Farm, Ltd., asks the U.S. Bankruptcy Court for the
Western District of Texas for permission to employ The Law Offices
of William B. Kingman, P.C., as counsel.
WBK will, among other things:
-- counsel the Debtor in matters relating to the administration
of the Bankruptcy Estate;
-- represent the Debtor in negotiations with various creditors,
including Debtor's secured creditor, and lessors;
-- assist in the preparation of the Debtor's Plan and
Disclosure Statement, schedules and pleadings, analyzing,
negotiating and litigating claims which may be brought in
the forms of objections or as adversary proceedings.
WBK was paid $510 for its prepetition legal services performed for
Debtor and a $16,990 retainer. The hourly fee of WBK is $300 and
paralegals and legal assistants is $85.
To the best of the Debtor's knowledge, WBK is a "disinterested
person" as that term is defined in Section 101(14) of the
Bankruptcy Code.
The firm can be reached at:
The Law Offices of William B. Kingman, P.C.
4040 Broadway, Suite 450
San Antonio, TX 78209
Tel: (210) 829-1199
Fax: (210) 821-1114
About Hill Top Farm, Ltd.
San Antonio, Texas-based Hill Top Farm, Ltd., filed for Chapter 11
bankruptcy protection on July 2, 2010 (Bankr. W.D. Tex. Case No.
10-52526). William B. Kingman, Esq., who has an office in San
Antonio, Texas, assists the Debtor in its restructuring effort.
The Company disclosed $17,105,389 in total assets and
$4,215,716 in total liabilities.
HUDAK MECHANICAL: Case Summary & 9 Largest Unsecured Creditors
--------------------------------------------------------------
Debtor: Hudak Mechanical Insulation, LLC
P.O. Box 72430
Baltimore, MD 21237
Bankruptcy Case No.: 10-28526
Chapter 11 Petition Date: August 13, 2010
Court: U.S. Bankruptcy Court
District of Maryland (Baltimore)
Judge: Robert A. Gordon
Debtor's Counsel: Marla L. Howell, Esq.
14406 Old Mill Road, No. 201
Upper Marlboro, MD 20772
Tel: (301) 464-1400
E-mail: mhowell@decarohowell.com
Estimated Assets: $0 to $50,000
Estimated Debts: $1,000,001 to $10,000,000
A list of the Company's nine largest unsecured creditors
filed together with the petition is available for free
at http://bankrupt.com/misc/mdb10-28526.pdf
The petition was signed by Tim Hudak, managing member.
HUDAK'S ASBESTOS: Case Summary & 20 Largest Unsecured Creditors
---------------------------------------------------------------
Debtor: Hudak's Asbestos Removal, Inc.
P.O. Box 72430
Baltimore, MD 21237
Bankruptcy Case No.: 10-28528
Chapter 11 Petition Date: August 13, 2010
Court: U.S. Bankruptcy Court
District of Maryland (Baltimore)
Judge: Robert A. Gordon
Debtor's Counsel: Marla L. Howell, Esq.
14406 Old Mill Road, No. 201
Upper Marlboro, MD 20772
Tel: (301) 464-1400
E-mail: mhowell@decarohowell.com
Estimated Assets: $0 to $50,000
Estimated Debts: $1,000,001 to $10,000,000
A list of the Company's 20 largest unsecured creditors
filed together with the petition is available for free
at http://bankrupt.com/misc/mdb10-28528.pdf
The petition was signed by Tim Hudak, president.
HUDAK'S CONSTRUCTION: Case Summary & Creditors List
---------------------------------------------------
Debtor: Hudak's Construction Services, Inc.
P.O. Box 72430
Baltimore, MD 21237
Bankruptcy Case No.: 10-28535
Chapter 11 Petition Date: August 13, 2010
Court: U.S. Bankruptcy Court
District of Maryland (Baltimore)
Judge: Nancy V. Alquist
Debtor's Counsel: Marla L. Howell, Esq.
14406 Old Mill Road, No. 201
Upper Marlboro, MD 20772
Tel: (301) 464-1400
E-mail: mhowell@decarohowell.com
Estimated Assets: $0 to $50,000
Estimated Debts: $1,000,001 to $10,000,000
A list of the Company's 20 largest unsecured creditors
filed together with the petition is available for free
at http://bankrupt.com/misc/mdb10-28535.pdf
The petition was signed by Tim Hudak, president.
INDEPENDENCE TAX: Posts $473,364 Net Loss for June 30 Quarter
-------------------------------------------------------------
Independence Tax Credit Plus L.P. filed its quarterly report on
Form 10-Q, reporting net loss of $473,364 on $1.83 million of
total revenues for the three months ended June 30, 2010, compared
with a net loss of $597,799 on $1.71 million of total revenues for
the same period a year ago.
Independence Tax's balance sheet at June 30, 2010, showed
$22.41 million in total assets, $42.57 million in total
liabilities, and a $20.16 million partners' deficit.
A full-text copy of the Company's Form 10-Q is available for free
at http://ResearchArchives.com/t/s?690d
About Independence Tax
Based in New York, Independence Tax Credit Plus L.P. is a limited
partnership which was formed under the laws of the State of
Delaware on November 7, 1990. The general partner of the
partnership is Related Independence Associates L.P., a Delaware
limited partnership. The general partner of the General Partner
is Related Independence Associates Inc., a Delaware corporation.
The ultimate parent of the General Partner is Centerline Holding
Company.
The partnership was formed to invest as a limited partner in other
partnerships that own 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. The partnership's investment in each
local partnership represents from 98% to 98.99% of the
partnership's interests in the local partnership. The partnership
originally held ownership interests in twenty-eight local
partnerships. The partnership does not intend to acquire
additional properties.
* * *
Trien Rosenberg Weinberg Ciullo & Fazzari LLP expressed
substantial doubt about Independence Tax's ability as a going
concern. The auditor notes that Company's three subsidiary
partnerships' net losses aggregated $10,504,227 for 2009 Fiscal
Year and $551,341 for 2008 Fiscal Year, and their assets
aggregated $6,189,416 and $23,400,218 at March 31, 2010 and 2009,
respectively.
The Partnership's balance sheet showed $23.1 million in total
assets and $42.7 million in total liabilities as of March 31,
2010, for a stockholder's deficit of $19.6 million.
INDEPENDENCE TAX, II: Posts $751,129 Net Loss for June 30 Quarter
-----------------------------------------------------------------
Independence Tax Credit Plus L.P. II filed its quarterly report on
Form 10-Q, reporting a net loss of $751,129 on $2.86 million of
total revenues for the fiscal first quarter ended June 30, 2010,
compared with a net loss of $1.11 million on $2.76 million of
total revenues for the same period a year earlier.
Independence Tax's balance sheet at June 30, 2010, showed
$38.61 million in total assets, $83.78 million in total
liabilities, and a partners' deficit of $45.16 million. The
partners' deficit was $44.3 million at March 31, 2010.
A full-text copy of the Partnership's Form 10-Q is available for
free at http://ResearchArchives.com/t/s?68fa
Going Concern
Trien Rosenberg Weinberg Ciullo & Fazzari LLP expressed
substantial doubt about Independence Tax's ability to continue as
a going concern, following the Partnership's financial results for
fiscal 2009. 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.
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.
INGRAM MICRO: Moody's Assigns 'Ba2' Rating on Senior Securities
---------------------------------------------------------------
Moody's Investors Service assigned a Baa3 rating to Ingram Micro
Inc.'s proposed $300 million senior unsecured notes offering.
Proceeds from the notes offering will be used for general
corporate purposes. Concurrently, Moody's assigned (P)Baa3/(P)Ba2
ratings, respectively to the company's new senior unsecured
debt/preferred securities shelf registration. The rating outlook
is stable.
The Baa3 rating reflects Ingram Micro's leading position as the
largest global broad-based technology distributor, historically
solid performance, particularly in its core North American
markets, and good geographic diversification through an expanded
presence in Asia-Pacific. The rating also captures the company's
solid financial performance and operating efficiency, positive
free cash flow generation, moderate leverage and solid liquidity
position throughout the economic downturn and Moody's expectation
that financial leverage will remain conservative. The rating
takes into account Moody's opinion that Ingram Micro will continue
to pursue its strategy of improving product mix to higher value-
added solutions and continue to expand share in North America.
At the same time, the Baa3 rating incorporates Moody's view that
IT distribution companies are challenged by their high volume, low
margin business profile, significant supplier concentration,
limited pricing power and exposure to the cyclical IT industry.
It also takes into account Moody's opinion that Ingram Micro will
face an increasingly competitive business environment as the
company enters the mid-range and high-end enterprise computing
markets. The potential for acquisition spending and share
repurchase activity sized within the company's cash generating
capabilities are also captured in the Baa3 rating.
The stable rating outlook reflects Moody's expectation that Ingram
Micro will maintain a leadership presence in its core North
America market and strong competitive positions across Europe,
Asia-Pacific and Latin America. It also incorporates Moody's
expectations that vendor/customer relationships will remain
relatively steady, adjusted operating margins will stay within a
range of 1.3% - 1.6% and retained cash flow to debt (Moody's
adjusted) will remain at or above 25%. Additionally, the stable
outlook reflects Moody's expectation that Ingram Micro will
maintain leverage at or below 2.5x (Moody's adjusted), fund share
buybacks and acquisitions within the cash generating capabilities
of the business and maintain cash balances in a range of at least
$300 - $500 million.
These new ratings were assigned:
* Ingram Micro $300 Million Senior Unsecured Notes -- Baa3
Senior Notes / Preferred Stock Shelf Registration -- (P)Baa3 /
(P)Ba2
The last rating action was on May 13, 2010 when Moody's upgraded
Ingram Micro's CFR to Baa3 from Ba1 with a stable outlook.
Ingram Micro, headquartered in Santa Ana, California, is the
largest global information technology wholesale distributor
providing sales, marketing, and supply chain solutions for the IT
industry worldwide. The company offers various IT products,
including peripherals, systems, networking, software, logistic
services, consumer electronics, and more recently data capture,
point-of-sale, and high-end home technology products. Revenues
for the last twelve months ended July 3, 2010 were $32.4 billion.
Moody's Investors Service adopts all necessary measures so that
the information it uses in assigning a credit rating is of
sufficient quality and from reliable sources; however, Moody's
Investors Service does not and cannot in every instance
independently verify, audit or validate information received in
the rating process.
The date on which some Credit Ratings were first released goes
back to a time before Moody's Investors Service's Credit Ratings
were fully digitized and accurate data may not be available.
Consequently, Moody's Investors Service provides a date that it
believes is the most reliable and accurate based on the
information that is available to it.
INT'L COAL GROUP: Reports $4.48MM Net Income for June 30 Qtr
------------------------------------------------------------
International Coal Group, Inc., recorded a $4.48 million net
income for the three month ended June 30, 2010, from a
$10.38 million net income for the same period in 2009. The
Company posted a $4.37 million net loss for the six months ended
June 30 2010, from a $14.07 million net income for the same period
a year ago.
The Company posted $300.4 million in total revenues for the
quarter ended June 30, 2010, from $277.8 million in total revenues
for the same period a year ago. The Company reported total
revenues of $589.03 million for the six months ended June 30,
2010, from $582.8 million in total revenues in the same period
last year.
The Company's balance sheet at June 30, 2010, showed
$1.465 billion in total assets, $737.5 million in total
liabilities, and a $727 million stockholder's equity.
A full-text copy of the Company's second quarter report on Form
10-Q is available at no charge at:
http://ResearchArchives.com/t/s?68f7/
About International Coal Group
Scott Depot, West Virginia-based International Coal Group, Inc.
(NYSE: ICO) produces coal in Northern and Central Appalachia and
the Illinois Basin. The Company has 13 active mining complexes,
of which 12 are located in Northern and Central Appalachia, and
one in Central Illinois. ICG's mining operations and reserves are
strategically located to serve utility, metallurgical and
industrial customers throughout the eastern United States.
* * *
In March 2010, Standard & Poor's Ratings Services raised its
corporate credit rating on International Coal Group LLC to 'B+'
from 'B-'. Moody's Investors Service affirmed the ratings of
International Coal Group, including the corporate family rating of
Caa1.
IT HOLDING: Files Chapter 15 Petition in Manhattan Court
--------------------------------------------------------
Tiffany Kary at Bloomberg News reports that IT Holding SpA filed
for court protection in the U.S. to aid its main reorganization in
Italy.
Bloomberg relates a Chapter 15 petition filed in Manhattan court
on Friday listed as much as US$1 billion in assets and
liabilities. According to Bloomberg, Stanislao Chimenti, an
administrator of the Italian proceeding, was listed as a foreign
representative.
About IT Holding SpA
IT Holding SpA -- http://www.itholding.com/-- is a Milan, Italy-
based company operating in the luxury goods market. The Company
and its subsidiaries design, produce and distribute apparel,
accessories, eyewear and perfumes. Its brand portfolio embraces:
owned brands, Gianfranco Ferre, Malo, Exte, as well as licensed
brands, Versace Jeans Couture, Versace Sport, Just Cavalli, C'N'C
Costume National and Galliano. The Company's production facilities
are located in Italy. IT Holding SpA has a worldwide distribution
network, including 39 directly operated stores, 274 monobrand
stores and over 6,000 department and specialty stores. In order
to be present in the most significant markets, IT Holding SpA has
dedicated market companies: ITTIERRE SpA, ITTIERRE France SA,
ITTIERRE Moden GmbH, IT USA HOLDING Inc and IT Asia Pacific
Limited, among others.
As reported by the Troubled Company Reporter-Europe, IT Holding
sought protection from creditors in Italy in February 2009 after
failing to make payments to lenders and suppliers.
IT HOLDING: Chapter 15 Case Summary
-----------------------------------
Chapter 15 Petitioner: Stanislao Chimenti,
Andrea Ciccoli, and
Roberto Spada,
as representatives
Chapter 15 Debtor: IT Holding S.p.A.
Pettoranello del Molise
Industrial District (Isernia)
Italy
Chapter 15 Case No.: 10-14354
Type of Business: The Debtor is a company based in Italy that
produces apparel, accessories, eyewear,
perfumes and other luxury goods.
Chapter 15 Petition Date: August 13, 2010
Court: U.S. Bankruptcy Court
Southern District of New York (Manhattan)
Judge: Martin Glenn
Chapter 15
Petitioners'
Counsel: Hanh V. Huynh, Esq.
Joshua Joseph Angel, Esq.
HERRICK, FEINSTEIN LLP
2 Park Avenue
New York, NY 10016
Tel: (212) 592-1482
(212) 592-5912
Fax: (212) 592-1500
E-mail: hhuynh@herrick.com
jangel@herrick.com
Estimated Assets: $500,000,001 to $1,000,000,000
Estimated Debts: $500,000,001 to $1,000,000,000
JOE DENNING: Case Summary & 20 Largest Unsecured Creditors
----------------------------------------------------------
Debtor: Joe Denning & Sons Farms
1180 Denning Road
Benson, NC 27504
Bankruptcy Case No.: 10-06534
Chapter 11 Petition Date: August 13, 2010
Court: U.S. Bankruptcy Court
Eastern District of North Carolina (Wilson)
Debtor's Counsel: Trawick H. Stubbs, Jr., Esq.
STUBBS & PERDUE, P.A.
P.O. Drawer 1654
New Bern, NC 28563
Tel: (252) 633-2700
Fax: (252) 633-9600
E-mail: efile@stubbsperdue.com
Scheduled Assets: $5,238,185
Scheduled Debts: $6,085,614
A list of the Company's 20 largest unsecured creditors
filed together with the petition is available for free
at http://bankrupt.com/misc/nceb10-06534.pdf
The petition was signed by Max Denning, partner.
KEY ENERGY: S&P Affirms Corporate Credit Rating at 'BB-'
--------------------------------------------------------
Standard & Poor's Ratings Services affirmed its 'BB-' corporate
credit rating on oilfield services provider Key Energy Services
Inc. revised the outlook to stable from negative.
"The outlook stabilization reflects the improvement in the North
American oilfield services market, Key's solid liquidity pro forma
for the sale of its pressure pumping business, and the company's
improving debt leverage measures," said Standard & Poor's credit
analyst Paul Harvey. Key's adjusted EBITDA has improved since its
low Sept. 30, 2009, as U.S. onshore drilling activity has gained
momentum. Based on annualized second-quarter EBITDA and pro forma
for the sale of the pressure pumping business, adjusted debt to
EBITDA would be a little over 4x. S&P expects further improvement
over the next 12 months if industry conditions remain healthy.
Liquidity should improve pro forma for the recently announced sale
of Key's pressure pumping and wireline businesses to Patterson UTI
for $257 million, and subsequent agreement to acquire coiled
tubing and other assets from OFS Energy Services LLC for total
consideration of $222 million. The OFS acquisition will be funded
through $76 million cash and the balance through equity. Net cash
flow from the transactions should be used to repay all outstanding
borrowings on Key's credit facility, $88 million as of June 30,
with the balance remaining as cash on hand.
The rating on Houston-based Key Energy Services Inc. reflects its
high debt leverage and expectations for improving industry
conditions in 2010. Ratings also encompass Key's limited business
diversity and an aggressive growth strategy based on acquisitions.
Factors that support ratings include Key's good liquidity, a
greater exposure to crude oil well maintenance business, and its
strong market share position in most workover rig markets.
The stable outlook is based on improving industry condition and
strengthening liquidity, which should support credit quality over
the next 12 to 18 months. S&P expects run-rate debt leverage to
remain around 4.0x in 2010 and improve with gradual recovery in
the industry. S&P could lower ratings if adjusted debt leverage
exceeds 4.5x level without a near-term deleveraging plan. A
ratings upgrade is unlikely over the next 12 months given the
longer-term uncertainty of U.S. drilling levels and the impact on
Key's markets.
KRISPY KREME: Shares Segment Financial and Operating Metrics
------------------------------------------------------------
In an effort to provide additional presentations of information
and other disclosures that could be useful to shareholders, in its
Annual Report on Form 10-K for the fiscal year ended January 31,
2010, Krispy Kreme Doughnuts, Inc. included in Item 8,
"Management's Discussion and Analysis of Financial Condition and
Results of Operations," new or expanded operating statistics and
tables setting forth the components of revenues and expenses of
each of the Company's four business segments.
A copy of the Historical Segment Financial Results And Operating
Metrics furnished by the Company is available for free at:
http://ResearchArchives.com/t/s?690c
About Krispy Kreme
Based in Winston-Salem, North Carolina, Krispy Kreme Doughnuts
Inc. (NYSE: KKD) -- http://www.KrispyKreme.com/-- is a retailer
and wholesaler of doughnuts. The company's principal business,
which began in 1937, is owning and franchising Krispy Kreme
doughnut stores where over 20 varieties of doughnuts are made,
sold and distributed and where a broad array of coffees and other
beverages are offered.
Kremeworks, LLC, which is 25%-owned by KKDI, has failed to comply
with certain financial covenants related to its indebtedness, a
portion of which matured, by its terms, in January 2009.
Kremeworks has requested that the lender waive the loan defaults
resulting from the covenant violations and refinance the maturing
indebtedness. In the event the lender is unwilling to do so and
declares the entire indebtedness immediately due and payable, the
Company could be required to perform under its guarantee.
Krispy Kreme Doughnuts said Kremeworks could have insufficient
cash flows from its business to service the indebtedness even if
it is refinanced, which might require capital contributions to
Kremeworks by the Company and the majority owner of Kremeworks --
which has guarantees of the Kremeworks indebtedness roughly
proportionate to those of the Company -- for Kremeworks to comply
with the terms of the any new loan agreement.
* * *
Krispy Kreme carries a 'B-' corporate credit rating from Standard
& Poor's. In September 2009, S&P said, "While the sales pressure
will continue, S&P expects the declines to decelerate and
profitability to somewhat stabilize or, at the very least, allow
the company to remain covenant compliant in the current and next
fiscal year."
LAYNE GRUENEWALD: Case Summary & 25 Largest Unsecured Creditors
---------------------------------------------------------------
Debtor: Layne Ellis Gruenewald
aka Gren Forest Companies Unlimited
LSG Group, LLC
dba Osborne Tank and Supply
18788 National Trails Highway
Oro Grande, CA 92368
Bankruptcy Case No.: 10-35876
Chapter 11 Petition Date: August 15, 2010
Court: U.S. Bankruptcy Court
Central District of California (Riverside)
Judge: Ellen Carroll
Debtor's Counsel: Michael R. Totaro, Esq.
TOTARO & SHANAHAN
P.O. Box 789
Pacific Palisades, CA 90272
Tel: (310) 573-0276
Fax: (310) 496-1260
E-mail: mtotaro@aol.com
Scheduled Assets: $413,798
Scheduled Debts: $1,100,138
A list of the Debtor's 25 largest unsecured creditors
filed together with the petition is available for free
at http://bankrupt.com/misc/cacb10-35876.pdf
LEO WILLS, III: Case Summary & 7 Largest Unsecured Creditors
------------------------------------------------------------
Debtor: Leo Wills, III
aka Leo Wills
1580 Calle Cristina
San Dimas, CA 91773
Bankruptcy Case No.: 10-43947
Chapter 11 Petition Date: August 13, 2010
Court: U.S. Bankruptcy Court
Central District of California (Los Angeles)
Judge: Victoria S. Kaufman
Debtor's Counsel: David S. Kupetz, Esq.
SULMEYER KUPETZ
333 S. Hope Street, 35th Floor
Los Angeles, CA 90071
Tel: (213) 626-2311
E-mail: dkupetz@sulmeyerlaw.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
A list of the Debtor's seven largest unsecured creditors
filed together with the petition is available for free
at http://bankrupt.com/misc/cacb10-43947.pdf
LEVI STRAUSS: Jaime Szulc Resigns as Chief Marketing Officer
------------------------------------------------------------
Jaime Cohen Szulc, chief marketing officer of Levi Strauss & Co.,
is resigning from his post effective August 31, 2010. In
connection with his departure, the Company will pay to Mr. Szulc
$1,516,125. Lawrence W. Ruff, senior vice president and chief
strategy officer, will assume responsibilities for the role until
a successor is selected.
About Levi Strauss & Co.
Headquartered in San Francisco, California, Levi Strauss & Co. --
http://www.levistrauss.com/-- is one of the world's leading
branded apparel companies. The Company designs and markets jeans,
casual and dress pants, tops, jackets and related accessories, for
men, women and children under the Levi's(R), Dockers(R) and
Signature by Levi Strauss & Co.(TM). The Company markets its
products in three geographic regions: Americas, Europe, and Asia
Pacific.
As of February 28, 2010, the Company's balance sheet showed total
assets of $2.9 billion, and total liabilities of $3.1 billion,
and a stockholders' deficit of $265,455,000.
* * *
The Company carries a 'B+' corporate credit rating from Standard &
Poor's, a 'B1' corporate family rating from Moody's Investors
Service and a 'BB-' issuer default rating from Fitch Ratings.
LODGE AT NEW TAMPA: Case Summary & 3 Largest Unsecured Creditors
----------------------------------------------------------------
Debtor: The Lodge at New Tampa, Inc.
15403 Morris Bridge Road
Thonotosassa, FL 33592
Bankruptcy Case No.: 10-19511
Chapter 11 Petition Date: August 13, 2010
Court: U.S. Bankruptcy Court
Middle District of Florida (Tampa)
Debtor's Counsel: Bernard J. Morse, Esq.
MORSE & GOMEZ PA
11268 Winthrop Main Street, Suite 102
Riverview, FL 33578
Tel: (813) 341-8400
Fax: (813) 463-1807
E-mail: chipmorse@morsegomez.com
Scheduled Assets: $2,571,394
Scheduled Debts: $3,780,765
A list of the Company's three largest unsecured creditors
filed together with the petition is available for free
at http://bankrupt.com/misc/flmb10-19511.pdf
The petition was signed by Kenneth L. Judson, president.
LPATH INC: Posts $1.31 Million Net Loss for June 30 Quarter
-----------------------------------------------------------
LPath Inc. filed its quarterly report on Form 10-Q, reporting net
loss of $1.31 million on $1.00 million of total revenues for the
three months ended June 30, 2010, compared with a net loss of
$3.93 million on $2.77 million of total revenues for same period a
year earlier.
The Company's balance sheet at June 30, 2010, showed $6.42 million
in total assets, $4.76 million in total liabilities, and a
$1.67 million total stockholders' equity.
A full-text copy of the Company's Form 10-Q is available for free
at http://ResearchArchives.com/t/s?6903
About Lpath
San Diego, Calif.-based Lpath, Inc. is a biotechnology company
focused on the discovery and development of lipidomic-based
therapeutics, an emerging field of medical science whereby
bioactive lipids are targeted to treat human diseases.
According to the Company's 2009 annual report on Form 10-K, Moss
Adams LLP, in San Diego, Calif., expressed substantial doubt about
the Company's ability to continue as a going concern. The
independent auditors noted that the Company had incurred
significant cash losses from operations since inception and
expects to continue to incur cash losses from operations in 2010
and beyond.
LUCRE INC: Carrier's Admin. Claim Limited to Reasonable Rate
------------------------------------------------------------
WestLaw reports that to the extent that the relationship under
which an incumbent carrier provided for the routing of calls of
the customers of a Chapter 11 debtor-telecommunications services
provider through a separate, dedicated circuit on the carrier's
facilities arose from an executory contract, as opposing to simply
a licensing arrangement, the carrier's administrative expense
claim for the debtor's postpetition, pre-rejection use of the
dedicated circuit had to be limited to the reasonable value of
those services. If the relationship was based on a mere license,
however, the contracted rate governed the carrier's administrative
claim. In so holding, a Michigan bankruptcy court determined that
the Supreme Court's decision in N.L.R.B. v. Bildisco and Bildisco,
providing that only a reasonable amount is due as an
administrative expense upon a rejected contract or lease, was
based upon a legal fiction that was replaced by a new approach
under the Bankruptcy Code mandating a contrary conclusion. The
court, however, adhered to precedent. In re Lucre, Inc., --- B.R.
----, 2010 WL 2867373 (Bankr. W.D. Mich.).
Competitive local exchange carrier Lucre, Inc., located in Grand
Rapids, Mich., sought chapter 11 protection (Bankr. W.D. Mich.
Case No. 05-21732) on October 21, 2005. Robert F. Wardrop, II,
Esq., at Wardrop & Wardrop, P.C., in Grand Rapids represents the
Debtor. At the time of the filing, the Debtor estimated its
assets at $5 million and its debts at $3 million.
MEXICANA AIRLINES: Union Asks Gov't to Push for More Days of Talks
------------------------------------------------------------------
Andres R. Martinez at Bloomberg News reports that Compania
Mexicana de Aviacion's flight attendants union on August 13, 2010,
asked the Mexican government to require all parties involved in
talks to save the airline to meet for at least two more days to
find a solution.
According to the report, the government must step in and help run
the airline until new investors are found to avoid a premeditated
and induced bankruptcy.
Compania Mexicana de Aviacion or Mexicana Airlines --
http://www.mexicana.com/-- is a privately held airline and a
subsidiary of Nuevo Grupo Aeronautico. Founded in 1921, Mexicana
is the oldest commercial carrier in North America. Charles
Lindbergh piloted the first trip for Mexicana between Brownsville,
Texas, and Mexico City.
Grupo Mexicana de Aviacion is the parent of Compania Mexicana. Two
other units are Aerovias Caribe S.A. de C.V. (Mexicana Click) and
Mexicana Inter S.A. de C.V. (Mexicana Link).
Compania Mexicana de Aviacion or Mexicana Airlines, Mexico's
largest airline, filed for bankruptcy in the U.S. and Mexico on
August 2, 2010. In the U.S., the company filed in the U.S.
Bankruptcy Court in Manhattan for Chapter 15 bankruptcy protection
(case no. 10-14182), and in Mexico, it filed for the equivalent of
Chapter 11.
Maru E. Johansen, foreign representative of Compania Mexicana,
estimated in the Chapter 15 petition that the company has assets
of US$500 million to US$1 billion and debts of more than US$1
billion. William C. Heuer, Esq., at Duane Morris LLP, serves as
counsel to Ms. Johansen.
Mexicana de Aviacion stated that despite its bankruptcy filing, it
expects to continue to operate normally, and that such filings
Bankruptcy Creditors' Service, Inc., publishes Mexicana Airlines
Bankruptcy News. The newsletter tracks the chapter 11 proceedings
and the ancillary proceedings undertaken by Compania Mexicana de
Aviacion and its units. (http://bankrupt.com/newsstand/or
215/945-7000).
MEXICANA AIRLINES: Airport Operator Suspends Passenger Fee
----------------------------------------------------------
Andres R. Martinez at Bloomberg News reports that Grupo
Aeroportuario Del Pacifico SAB suspended charging a fee on
passengers booked to take Grupo Mexicana de Aviacion flights.
According to the report, Aeroportuario del Pacifico, an airport
operator, had planned to charge Mexicana clients starting
yesterday, August 16, 2010. The report relates that the charge
would have applied to all Mexicana flights, including its low-cost
operation.
Compania Mexicana de Aviacion or Mexicana Airlines --
http://www.mexicana.com/-- is a privately held airline and a
subsidiary of Nuevo Grupo Aeronautico. Founded in 1921, Mexicana
is the oldest commercial carrier in North America. Charles
Lindbergh piloted the first trip for Mexicana between Brownsville,
Texas, and Mexico City.
Grupo Mexicana de Aviacion is the parent of Compania Mexicana. Two
other units are Aerovias Caribe S.A. de C.V. (Mexicana Click) and
Mexicana Inter S.A. de C.V. (Mexicana Link).
Compania Mexicana de Aviacion or Mexicana Airlines, Mexico's
largest airline, filed for bankruptcy in the U.S. and Mexico on
August 2, 2010. In the U.S., the company filed in the U.S.
Bankruptcy Court in Manhattan for Chapter 15 bankruptcy protection
(case no. 10-14182), and in Mexico, it filed for the equivalent of
Chapter 11.
Maru E. Johansen, foreign representative of Compania Mexicana,
estimated in the Chapter 15 petition that the company has assets
of US$500 million to US$1 billion and debts of more than US$1
billion. William C. Heuer, Esq., at Duane Morris LLP, serves as
counsel to Ms. Johansen.
Mexicana de Aviacion stated that despite its bankruptcy filing, it
expects to continue to operate normally, and that such filings
Bankruptcy Creditors' Service, Inc., publishes Mexicana Airlines
Bankruptcy News. The newsletter tracks the chapter 11 proceedings
and the ancillary proceedings undertaken by Compania Mexicana de
Aviacion and its units. (http://bankrupt.com/newsstand/or
215/945-7000).
MILESTONE SCIENTIFIC: Swings to $180,360 Net Income in Q2 2010
--------------------------------------------------------------
Milestone Scientific Inc. recorded a net income of $180,360 for
the three months ended June 30, 2010, from a $656,542 net loss for
the same period in 2009. The Company posted a $264,282 net income
for the six months ended June 30 2010, from a $1,218,183 net loss
for the same period a year ago.
Revenue for the three months ended June 30, 2010 was $3,218,669,
compared with $2,036,902 in the comparable period in 2009.
The Company's balance sheet at June 30, 2010 showed $6,631,865 in
total assets, $2,850,068 in current liabilities, $573,360 in long-
term debts, and a $3,208,437 stockholder's equity.
A full-text copy of the Company's quarterly report on Form 10-Q is
available at no charge at http://ResearchArchives.com/t/s?68ef/
Piscataway, N.J.-based Milestone Scientific Inc. (OTC BB: MLSS)
-- http://www.milestonescientific.com/-- is engaged in pioneering
proprietary, highly innovative technological solutions for the
medical and dental markets. Central to the Company's IP platform
and product development strategy is its patented CompuFlo(R)
technology for the improved and painless delivery of local
anesthetic.
* * *
Holtz Rubenstein Reminick LLP, in New York City, after auditing
the Company's 2009 results, expressed substantial doubt about the
Company's ability to continue as a going concern. The independent
auditors noted of the Company's recurring losses from operations
since inception.
MOLECULAR INSIGHT: Receives Seventh Extension of Waiver Agreement
-----------------------------------------------------------------
Molecular Insight Pharmaceuticals, Inc. has received a seventh
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
seventh 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 11:59 PM Eastern Standard Time on August 31, 2010. During
this waiver extension period, the Company will continue to discuss
with its Bond holders various proposals 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
Cambridge, Mass.-based Molecular Insight Pharmaceuticals, Inc.
(NASDAQ: MIPI) -- http://www.molecularinsight.com/-- 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.
As reported in the Troubled Company Reporter on March 17, 2010,
Deloitte & Touche LLP expressed substantial doubt about the
Company's ability to continue as a going concern after auditing
the Company's financial statements for the year ended December 31,
2009. The independent auditors noted of the Company's
difficulties in meeting its bond indenture covenants and its
recurring losses from operations.
Molecular Insight inked with bondholders a waiver agreement that
expires August 16, 2010. The bondholders agreed to waive a
default arising from the inclusion of a going concern explanatory
paragraph in the 2009 financial statements and other technical
defaults under the bond indenture. The Company said that if its
debt obligations are accelerated following termination of the
waiver agreement or the debts 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.
NATHAN LINDER: Case Summary & 6 Largest Unsecured Creditors
-----------------------------------------------------------
Debtor: Nathan Linder
aka Nathan W. Linder
990 N. Amelia Street
San Dimas, CA 91172-1491
Bankruptcy Case No.: 10-43941
Chapter 11 Petition Date: August 13, 2010
Court: U.S. Bankruptcy Court
Central District of California (Los Angeles)
Judge: Sheri Bluebond
Debtor's Counsel: David S. Kupetz, Esq.
SULMEYER KUPETZ
333 S. Hope Street, 35th Floor
Los Angeles, CA 90071
Tel: (213) 626-2311
E-mail: dkupetz@sulmeyerlaw.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
A list of the Debtor's six largest unsecured creditors
filed together with the petition is available for free
at http://bankrupt.com/misc/cacb10-43941.pdf
NEWS-JOURNAL CORP: PBGC Assumes Responsibility for Pension Plan
---------------------------------------------------------------
The Pension Benefit Guaranty Corporation has assumed
responsibility for the underfunded pension plan covering more than
1,100 workers and retirees of News-Journal Corp., a newspaper
publishing company in Daytona Beach, Fla.
The PBGC took action because News-Journal's assets were sold under
receivership and the buyer did not assume the pension plan.
Retirees will continue to receive their monthly benefit payments
without interruption, and other workers will receive their
pensions when they are eligible to retire.
According to PBGC estimates, the Pension Plan of News-Journal
Corporation is 65 percent funded, with assets of $28.20 million to
cover $43.66 million in benefit liabilities. The PBGC expects to
be responsible for $15.39 million of the $15.47 million shortfall.
The PBGC will take over the assets and use insurance funds to pay
guaranteed benefits earned under the plan, which ended on March
23, 2010. The agency assumed responsibility for the plan on Aug.
6, 2010.
Within the next several weeks, the PBGC will send notification
letters to all participants in the News-Journal plan. Under
federal pension law, the maximum guaranteed pension at age 65 for
participants in plans that terminate in 2010 is $54,000 a year.
The maximum guaranteed amount is lower for those who retire
earlier or elect survivor benefits. In addition, certain early
retirement subsidies and benefit increases made within the past
five years may not be fully guaranteed.
Workers and retirees with questions may consult the PBGC Web site,
http://www.pbgc.gov/or call toll-free at 1-800-400-7242. For
TTY/TDD users, call the federal relay service toll-free at 1-800-
877-8339 and ask for 800-400-7242.
News-Journal retirees who draw a benefit from the PBGC may be
eligible for the federal Health Coverage Tax Credit. Further
information may be found on the PBGC Web site at
http://www.pbgc.gov/workers-retirees/benefits-
information/content/page13692.html
Assumption of the plan's unfunded liabilities will increase the
PBGC's claims by $15.4 million and was not previously included in
the agency's fiscal year 2009 financial statements.
The PBGC is a federal corporation created under the Employee
Retirement Income Security Act of 1974. It currently guarantees
payment of basic pension benefits earned by 44 million American
workers and retirees participating in over 29,000 private-sector
defined benefit pension plans. The agency receives no funds from
general tax revenues. Operations are financed largely by
insurance premiums paid by companies that sponsor pension plans
and by investment returns.
Receivership
News-Journal is the publisher of the Daytona Beach News-Journal
and six local shopping guides through its wholly-owned subsidiary,
the Volusia Pennysaver, Inc. On April 17, 2009, the
communications company, Cox Enterprises Inc., asked the U.S.
District Court for the Middle District of Florida to place News-
Journal into receivership. The request was made following News-
Journal's inability to pay a judgment in Cox's favor.
On Jan. 6, 2010, the court-appointed receiver, James W. Hopson,
and Cox filed a joint motion for approval of an asset purchase
agreement that would establish the sale of substantially all of
News-Journal's publishing assets to Halifax Media Acquisition LLC.
The sale was approved by the District Court on March 23, 2010.
NEXMED INC: Posts $4.3 Million Net Loss in Q2 Ended June 30
-----------------------------------------------------------
NexMed, Inc., filed its quarterly report on Form 10-Q, reporting a
net loss of $4.28 million on $1.47 million of revenue for the
three months ended June 30, 2010, compared with a net loss of
$1.42 million on $102,613 of revenue for the same period of 2009.
The increase in net loss is primarily attributable to the
increased general and administrative expenses and non-cash
interest charges.
The Company's balance sheet as of June 30, 2010, showed
$24.48 million in total assets, $7.37 million in total
liabilities, and a stockholders' equity of $17.11 million.
As reported in the Troubled Company Reporter on April 6, 2010,
Amper, Politziner & Mattia, LLP, in Edison, N.J., expressed
substantial doubt about the Company's ability to continue as a
going concern, following its 2009 results. The independent
auditors noted that the Company has suffered recurring losses and
negative cash flows from operations and expects to incur future
losses. In addition, the Company has substantial notes payable
and other obligations that mature within the next 12 months.
A full-text copy of the Form 10-Q is available for free at:
http://researcharchives.com/t/s?6915
San Diego, Calif.-based NexMed, Inc. has operated in the
pharmaceutical industry since 1995, focusing on research and
development in the area of drug delivery. The Company's
proprietary drug delivery technology is called NexACT(R).
NIGEL HOLMAN: Case Summary & 20 Largest Unsecured Creditors
-----------------------------------------------------------
Joint Debtors: Nigel Bryan Holman
April Dawn Holman
6319 Montecito Drive
Carlsbad, CA 92009
Bankruptcy Case No.: 10-14485
Chapter 11 Petition Date: August 14, 2010
Court: U.S. Bankruptcy Court
Southern District of California (San Diego)
Judge: Peter W. Bowie
Debtors' Counsel: Hugh D. Kelso, III, Esq.
H.D KELSO & ASSOC.
8799 Balboa Avenue, Suite 155
San Diego, CA 92112
Tel: (858) 974-7150 Ext. 13
E-mail: hugh_kelso@yahoo.com
Scheduled Assets: $2,044,152
Scheduled Debts: $3,832,663
A list of the Joint Debtors' 20 largest unsecured creditors
filed together with the petition is available for free
at http://bankrupt.com/misc/casb10-14485.pdf
NORTHWEST PIPE: Gets Nasdaq Notice on Late Financial Filing
-----------------------------------------------------------
Northwest Pipe Company received a letter from the Nasdaq Stock
Market stating that the Company is not in compliance with Nasdaq
Listing Rule 5250(c) (1) because it did not timely file its
Quarterly Report on Form 10-Q for the quarter ended June 30, 2010
(the "June Form 10-Q"). The letter from Nasdaq states that the
Company's failure to timely file the June Form 10-Q serves as an
additional basis for delisting the Company's securities from the
Nasdaq Global Select Market, and states that the Company should
present its views with respect to the additional deficiency to
Nasdaq in writing no later than August 18, 2010, which the Company
intends to do.
As previously disclosed, the Company received a staff
determination letter from the Nasdaq on May 11, 2010 stating that,
because the Company had not filed its Quarterly Report on Form 10-
Q for the quarter ended September 30, 2009 and its Annual Report
on Form 10-K for the year ended December 31, 2009 on or before May
10, 2010, trading of the Company's common stock would be suspended
from the Nasdaq Global Select Market at the opening of business on
May 20, 2010 unless the Company requested an appeal of the Nasdaq
staff's delisting determination. Also as previously disclosed,
the Company requested an appeal of the Nasdaq staff's delisting
determination to a Nasdaq Hearings Panel, and the hearing before
the Hearings Panel occurred on June 24, 2010. Also as previously
disclosed, on July 23, 2010, the Company received from Nasdaq the
written decision of the Hearings Panel, which states that the
Hearings Panel has determined to continue the listing of the
Company's shares on the Nasdaq Global Select Market, subject to
the condition that the Company, on or before November 8, 2010,
shall file with the Securities and Exchange Commission its
Quarterly Report on Form 10-Q for the quarter ended September 30,
2009, its Annual Report on Form 10-K for the year ended
December 31, 2009, and its Quarterly Report on Form 10-Q for the
quarter ended March 31, 2010. The Company expects that Nasdaq
will also require the Company to file the June Form 10-Q on or
before November 8, 2010.
About Northwest Pipe Company
Northwest Pipe Company manufactures welded steel pipe and other
products in two business groups. Its Water Transmission Group is
the leading supplier of large diameter, high-pressure steel pipe
products that are used primarily for water infrastructure in North
America. Its Tubular Products Group manufactures smaller diameter
steel pipe for a wide range of applications including
construction, agricultural, energy, traffic and other commercial
and industrial uses. The Company is headquartered in Vancouver,
Washington and has manufacturing operations in the United States,
Mexico, and Indonesia.
NRG ENERGY: Fitch Affirms B+ Ratings After Blackstone Deal
----------------------------------------------------------
Fitch Ratings has affirmed its ratings on NRG Energy Inc following
NRG's announcement that it has signed a definitive agreement with
an affiliate of The Blackstone Group L.P. to purchase 3,884
megawatts of Dynegy Inc. assets in California and Maine for
$1.36 billion, or $351/kilowatt, and that in a separate
transaction, NRG has agreed to acquire the Cottonwood Generating
Station, a 1,279 MW natural gas-fueled plant in the Entergy zone
of east Texas, from Kelson Limited Partnership for $525 million,
or $410/kilowatt.
The affirmation considers the relative strength of NRG's balance
sheet, earnings, and cash flow which should facilitate NRG's
ability to fund the $1.9 billion in asset acquisitions while
maintaining adequate liquidity and without unduly pressuring
credit metrics. The DYN assets being acquired generally are
supported by tolling, capacity, and/or reliability must-run
revenue, with the exception of the Texas plant which is strictly
merchant, but should provide portfolio synergies to NRG. While
the funding of the asset acquisition remains unknown NRG has said
a portion will be funded by cash and the assets are expected to
contribution between $175 million to $225 million in adjusted
EBITDA on an annual basis. Even with a fully debt-funded
acquisition Fitch believes NRG's metrics would remain appropriate
for the current rating category.
NRG's key ratings factors include price levels in the power and
gas markets, the challenging competitive generation environment
Fitch expects for 2010 and 2011, tempered by steps taken by NRG to
improve its balance sheet and hedge a significant portion of its
wholesale generation and commodity price exposure. Fitch
considers NRG's current liquidity position to be adequate and its
business risk profile improved with the acquisition and strong
performance of the Reliant Energy retail electricity marketing
business.
NRG's ratings are affirmed:
-- Issuer Default Rating at 'B+';
-- Senior secured term loan at 'BB+/RR1';
-- Senior secured revolving credit facility at 'BB+/RR1';
-- Senior secured synthetic letter of credit facility at
'BB+/RR1';
-- Senior unsecured notes at 'BB/RR2';
-- Convertible preferred stock at 'B-/RR6'.
The Rating Outlook is Stable.
ONE ACCORD: Section 341(a) Meeting Scheduled for Sept. 1
--------------------------------------------------------
The U.S. Trustee for Region 4 will convene a meeting of One Accord
Worship Center's creditors on September 1, 2010, at 11:00 a.m.
The meeting will be held at Office of the U.S. Trustee, 200 Granby
Street, Room 625, Norfolk, VA 23510.
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.
Virginia Beach, Virginia-based One Accord Worship Center filed for
Chapter 11 bankruptcy protection on August 5, 2010 (Bankr. E.D.
Va. Case No. 10-73674). Joseph T. Liberatore, Esq., at Crowley,
Liberatore, & Ryan, P.C., assists the Debtor in its restructuring
effort. The Debtor estimated its assets at $10 million to
$50 million and debts at $1 million to $10 million as of the
Petition Date.
ONE ACCORD: Taps Crowley Liberatore as Bankruptcy Counsel
---------------------------------------------------------
One Accord Worship Center asks for authorization from the U.S.
Bankruptcy Court for the Eastern District of Virginia to employ
Crowley, Liberatore & Ryan, P.C., as bankruptcy counsel.
CL&R will, among other things:
a. prepare the petition, lists, schedules and statements;
the pleadings, motions, notices and orders required for
the orderly administration of the state and to ensure the
progress of the Chapter 11 case; and consult with and
advise the Debtor in the reorganization of financial
affairs and/or the liquidation of assets;
b. prepare to, prosecute, defend, and represent the Debtor's
interests in all contested matters, adversary proceedings,
and other motions and applications arising under, arising
in, or related to the Debtor's bankruptcy case;
c. advise and consult concerning administration of the estate
in the Debtor's bankruptcy case, concerning the rights and
remedies with regard to the Debtor's assets; concerning
the claims of administrative, secured, priority, and
unsecured creditors and other parties in interest; and
d. prepare a Disclosure Statement and Plan of Reorganization
for the Debtor, and negotiate with all creditors and
parties in interest who may be affected thereby; to obtain
confirmation of a Plan of Reorganization, and perform all
acts reasonably calculated to permit the Debtor to perform
the acts and consummate a Plan of Reorganization.
CL&R will be paid based on the hourly rates of its personnel:
Attorneys $175-$300
Paralegals $35-$90
Joseph T. Liberatore, Esq., a shareholder at CL&R assures the
Court that the firm is "disinterested" as that term is defined in
Section 101(14) of the Bankruptcy Code.
Virginia Beach, Virginia-based One Accord Worship Center filed for
Chapter 11 bankruptcy protection on August 5, 2010 (Bankr. E.D.
Va. Case No. 10-73674). The Debtor estimated its assets at
$10 million to $50 million and debts at $1 million to $10 million.
OPTI CANADA: Inks Agreement To Issue & Sell US$100 Million Notes
----------------------------------------------------------------
OPTI Canada Inc. has entered into a definitive agreement to issue
and sell US$100 million face value of 9.0% First Lien Senior
Secured Notes due December 15, 2012 and US$300 million face value
of 9.75% First Lien Senior Secured Notes due August 15, 2013.
The new 2012 Notes are being offered as additional notes under an
indenture pursuant to which OPTI issued US$425 million aggregate
principal amount of 9% First Lien Senior Secured Notes, due
December 15, 2012, on November 20, 2009. The new 2012 Notes and
2013 Notes are being offered at a price of 99.5% and 96.5%
respectively, resulting in a yield to maturity of approximately
9.2% and 11.2% respectively.
The new 2012 Notes and 2013 Notes have been resold through a
syndicate of investment banks to certain institutional investors
pursuant to applicable securities law exemptions. The closing
of the new 2012 Notes and 2013 Notes financing is anticipated to
occur August 20, 2010 and is subject to the finalization of
definitive documentation and other customary closing conditions.
Using the August 11, 2010 Bank of Canada noon exchange rate of
US$0.956 = C$1.00, the net proceeds to OPTI from the sale of the
Notes will be approximately C$395 million, after deducting certain
fees and expenses related to the offering transactions and
adjusting for the offering prices noted above.
The purpose of the private offerings is to maintain sufficient
liquidity through the ramp-up period of the Long Lake Project and
to allow the Company to continue with its previously announced
review of strategic alternatives. The net proceeds will be used
to repay outstanding borrowings of C$50 million under our
revolving credit facility, to fund an interest escrow account of
approximately US$87 million relating to the 2013 Notes, and for
general corporate purposes.
Moody's Investor Service has affirmed a B2 rating on the 2012
Notes. Standard and Poor's has lowered the issue-level rating on
the existing 2012 Notes to a B rating and has assigned the new
2012 Notes a B rating. Moody's and S&P have rated the 2013 Notes
as B3 and B, respectively.
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.
* * *
According to the Troubled Company Reporter on Aug. 13, 2010,
Standard & Poor's Ratings services said it lowered its long-term
corporate credit rating on Calgary, Alta.-based OPTI Canada Inc.
to 'CCC+' from 'B-'. The outlook is stable.
Moody's Investors Service assigned a B3 (LGD2, 27%) rating to OPTI
Canada Inc.'s proposed secured first-lien 1C notes. Moody's also
affirmed OPTI's Caa2 Corporate Family Rating, B1 rating on the
existing C$190 million secured first-lien revolving facility, B2
rating on the secured first-lien 1B notes and Caa3 rating on the
US$1.75 billion secured second lien notes. The rating outlook
remains negative.
OSAGE EXPLORATION: Lowers Net Loss to $296,300 in Q2 2010
---------------------------------------------------------
Osage Exploration and Development, Inc. incurred a $296,313 net
loss for the three months ended June 30, 2010, from a $339,963 net
loss for the same period in 2009. The Company posted a $1,298,505
net loss for the six months ended June 30 2010, from a $2,067,294
loss for the same period a year ago.
The Company reported total operating revenues of $374,348 in the
second quarter of 2010, compared with revenues of $631,925 during
the same period in 2009. The Company reported oil and pipeline
revenues of $799,111 in the six months ended June 30, 2010,
compared with $1,375,996 during the same period in 2009.
As of June 30, 2010, the Company had $2,753,097 in total assets,
$1,161,843 in total liabilities, and a $1,591,254 stockholders'
equity.
A full-text copy of the Company's quarterly report on Form 10-Q is
available at no charge at http://ResearchArchives.com/t/s?68f4
Based in San Diego, California with production offices in Oklahoma
City, Oklahoma, and executive offices in Bogota, Colombia, Osage
Exploration and Development, Inc. (OTC BB: OEDV) --
http://www.osageexploration.com/-- is an independent exploration
and production company with interests in oil and gas wells and
prospects in the US and Colombia.
* * *
GPKM LLP of Encino, California, expressed substantial doubt about
Osage Exploration's ability to continue as a going concern
following the Company's 2009 results. The firm reported that the
Company has suffered recurring losses from operations and has an
accumulated deficit as of December 31, 2009.
PALMAS COUNTRY: Section 341(a) Meeting Scheduled for Sept. 13
-------------------------------------------------------------
The U.S. Trustee for Region 21 will convene a meeting of Palmas
Country Club, Inc.'s creditors on September 13, 2010, at 9:00 a.m.
The meeting will be held at 341 Meeting Room, Ochoa Building, 500
Tanca Street, First Floor, San Juan.
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.
Humacao, Puerto Rico-based Palmas Country Club, Inc., owns certain
real estate facilities located in Palmas del Mar, Humacao, Puerto
Rico, consisting of an 18 hole championship golf course known as
the Flamboyan Course, an 18 hole golf course known as Palm Course,
a 22,200 square feet golf clubhouse, a 5,600 square feet beach
club house, a tennis club, and other related facilities.
Palmas filed for Chapter 11 bankruptcy protection on August 4,
2010 (Bankr. D. P.R. Case No. 10-07072). Alexis Fuentes-
Hernandez, Esq., at Fuentes Law Offices, assists the Debtor in its
restructuring effort. The Debtor estimated its assets and debts
at $1 million to $100 million.
PALMAS COUNTRY: Has Stipulation on Cash Collateral Use
------------------------------------------------------
Palmas Country Club, Inc., has reached a stipulation with the
Puerto Rico Tourism Development Fund (the TDF) on the use of
$164,941 of cash collateral for a period of two months.
Alexis Fuentes-Hernandez, Esq., at Fuentes Law Offices, explains
that the Debtor needs the money to fund its Chapter 11 case, pay
suppliers and other parties. The Debtors will use the collateral
pursuant to a budget, a copy of which is available for free at:
http://bankrupt.com/misc/PALMAS_COUNTRY_budget.pdf
The Debtor and the Puerto Rico Industrial, Tourist, Educational,
Medical and Environmental Control Facilities Financing Authority,
an instrumentality of the government of the Commonwealth of Puerto
Rico (AFICA), entered into a Loan Agreement, dated October 26,
2000 (the AFICA Loan Agreement). Pursuant to the terms of the
AFICA Loan Agreement, AFICA agreed to issue bonds in the principal
amount of $30,000,000 and to lend that amount to the Debtor. In
furtherance of the AFICA Loan Agreement, and pursuant to the terms
of AFICA's Organic Act, Act No. 121 of June 27, 1997, and a Trust
Agreement entered into by AFICA and PaineWebber Trust Company of
Puerto Rico, as trustee (the Bond Trustee), dated October 26, 2000
(the Trust Agreement), AFICA issued the bonds.
To facilitate and make possible the issuance and sale of the
bonds, on October 26, 2000, TDF and the Debtor executed a Letter
of Credit and Reimbursement Agreement, pursuant to which
TDF issued a Letter of Credit to the Bond Trustee in effect
guaranteeing the bonds and the Debtor's payment obligations
relating thereto under the AFICA Loan Agreement (the Reimbursement
Agreement).
On October 19, 2009, TDF extended to the Debtor a non-revolving
line of credit in the amount of $525,000 for the partial financing
of several of the operating expenses incurred by the Debtor (the
TDF Agreement).
As of the Petition Date, the Debtor affirms that these additional
amounts are currently outstanding, due and payable under the
Financing Agreements: $553,149.55 is due and payable under the TDF
Agreement, and $760,408.88 is due and payable under the
Reimbursement Agreement with respect to fees, expenses and other
amounts. As of the Petition Date, the balance of the loans was
approximately $30,992,813.73.
In exchange for using the cash collateral, the Debtor will grant
TDF and the Trustee a replacement lien and a post-petition
security interest on all of the assets and Collateral acquired by
the Debtor from the Petition Date. As additional adequate
protection, the Debtor will grant TDF and the Trustee a super-
priority claim in an amount equal to any diminution in value of
the pre-petition collateral.
Upon any consummation of any sale of substantially all of the
Debtor's assets, the proceeds of the sale will be paid immediately
and indefeasibly, at the closing, directly to TDF for its benefit
and the benefit of the Trustee in an amount equivalent to the
total amount of the Loans, plus any post-petition interest and/or
charges that may have accrued.
As additional adequate protection, the Debtor agrees to waive any
and all rights under Section 506(c) of the U.S. Bankruptcy Code as
to any of the collateral.
The post-petition collateral under the replacement liens and the
prepetition collateral will all serve as cross-collateral for the
loans and any and all other amounts disbursed by TDF under the
Financing Agreements.
The Debtor and TDF agree that the Budget and the maintenance
contemplated therein will be coordinated and performed by Palmas
Athletic Club, Inc. (PAC). PAC will submit to TDF and the Debtor
bi-weekly reports on the use of cash collateral on the Monday
after each two week period.
PAC will secure and maintain with an insurance company
satisfactory to PCCI, Comprehensive General Liability Insurance,
including coverage for environmental damage and pollution with
limits of not less than $3,000,000 in respect of personal injury
or death combined single limit, and not less than $2,000,000 in
respect of property damage combined single limit including a
contractual liability endorsement covering the indemnification by
PAC to PCCI. The insurance will include coverage for the actions
of PAC and persons PAC permits to enter upon the Facilities.
The Debtor and TDF ask for the Court's approval of the
stipulation.
About Palmas Country
Humacao, Puerto Rico-based Palmas Country Club, Inc., owns certain
real estate facilities located in Palmas del Mar, Humacao, Puerto
Rico, consisting of an 18 hole championship golf course known as
the Flamboyan Course, an 18 hole golf course known as Palm Course,
a 22,200 square feet golf clubhouse, a 5,600 square feet beach
club house, a tennis club, and other related facilities.
Palmas filed for Chapter 11 bankruptcy protection on August 4,
2010 (Bankr. D. P.R. Case No. 10-07072). Alexis Fuentes-
Hernandez, Esq., at Fuentes Law Offices, assists the Debtor in its
restructuring effort. The Debtor estimated its assets and debts
at $1 million to $100 million.
PALMAS COUNTRY: Taps Alexis Fuentes-Hernandez as Bankr. Counsel
---------------------------------------------------------------
Palmas Country Club, Inc., asks for authorization from the U.S.
Bankruptcy Court for the District of Puerto Rico to employ Alexis
Fuentes-Hernandez at Fuentes Law Offices as bankruptcy counsel.
Mr. Fuentes-Hernandez will be paid $200 per hour for his services.
To the best of the Debtor's knowledge, Mr. Fuentes-Hernandez is
"disinterested" as that term is defined in Section 101(14) of the
Bankruptcy Code.
Humacao, Puerto Rico-based Palmas Country Club, Inc., owns certain
real estate facilities located in Palmas del Mar, Humacao, Puerto
Rico, consisting of an 18 hole championship golf course known as
the Flamboyan Course, an 18 hole golf course known as Palm Course,
a 22,200 square feet golf clubhouse, a 5,600 square feet beach
club house, a tennis club, and other related facilities.
Palmas filed for Chapter 11 bankruptcy protection on August 4,
2010 (Bankr. D.P.R. Case No. 10-07072). The Debtor estimated its
assets and debts at $1 million to $100 million.
PALMAS COUNTRY: Wants to Sell Assets as Payment to Tourism Dev't
----------------------------------------------------------------
Palmas Country Club, Inc., and the Puerto Rico Tourism Development
Fund's jointly ask for authorization from the U.S. Bankruptcy
Court for the District of Puerto Rico to allow the sale of certain
of the Debtor's assets, free and clear of liens.
The Debtor will sell the assets to TDF as payment of substantially
all amounts outstanding under the parties' loan agreements that
surpass $30 million.
The Debtor and the Puerto Rico Industrial, Tourist, Educational,
Medical and Environmental Control Facilities Financing Authority,
an instrumentality of the government of the Commonwealth of Puerto
Rico (AFICA), entered into a Loan Agreement, dated October 26,
2000 (the AFICA Loan Agreement). Pursuant to the terms of the
AFICA Loan Agreement, AFICA agreed to issue bonds in the principal
amount of $30,000,000 and to lend that amount to the Debtor. In
furtherance of the AFICA Loan Agreement, and pursuant to the terms
of AFICA's Organic Act, Act No. 121 of June 27, 1997, and a Trust
Agreement entered into by AFICA and PaineWebber Trust Company of
Puerto Rico, as trustee (the Bond Trustee), dated October 26, 2000
(the Trust Agreement), AFICA issued the bonds.
To facilitate and make possible the issuance and sale of the
bonds, on October 26, 2000, TDF and the Debtor executed a Letter
of Credit and Reimbursement Agreement, pursuant to which
TDF issued a Letter of Credit to the Bond Trustee in effect
guaranteeing the bonds and the Debtor's payment obligations
relating thereto under the AFICA Loan Agreement (the Reimbursement
Agreement).
On October 19, 2009, TDF extended to the Debtor a non-revolving
line of credit in the amount of $525,000 for the partial financing
of several of the operating expenses incurred by the Debtor (the
TDF Agreement).
As of the Petition Date, the Debtor affirms that these additional
amounts are currently outstanding, due and payable under the
Financing Agreements: $553,149.55 is due and payable under the TDF
Agreement, and $760,408.88 is due and payable under the
Reimbursement Agreement with respect to fees, expenses and other
amounts. As of the Petition Date, the balance of the loans was
approximately $30,992,813.73.
The value of the Debtor's facilities is under $30 million. The
Facilities were appraised on June 30, 2009, at $22 million at a
time when the Facilities were operating and generating revenue.
Since the Facilities have no equity, there would be no recoveries
to any creditor other than TDF through any other viable sale or
transfer, except through the sale described herein, that will
yield a carve-out for payment of unsecured claims. The sale will
permit the Facilities to be re-opened and the operations re-
started expeditiously, upon the closing of the Sale, which will
greatly benefit the Palmas del Mar community and the estate.
There are no other offers to purchase the Facilities and, thus,
this is the only viable alternative that will allow for the re-
opening of the Facilities, a recovery to unsecured creditors in a
no-equity case, and the most benefit to the various constituents
of the estate.
Upon closing of the sale and execution of the deed for partial
payment in kind, the Debtor's estate will be deemed to have
satisfied its obligations under the Financing Agreements and the
loan documents, and the amounts due under the loans.
After the closing of the sale, TDF will continue to make all
payments of interest and principal due under the bonds to the Bond
Trustee pursuant to the TDF Letter of Credit. The Debtor's parent
company will provide a carve-out, in the amount of $100,000, to be
distributed to unsecured creditors (other than TDF), in accordance
with the U.S. Bankruptcy Code, pursuant to a plan.
The Debtor and TDF ask for the Court's approval to sell the
assets.
About Palmas Country
Humacao, Puerto Rico-based Palmas Country Club, Inc., owns certain
real estate facilities located in Palmas del Mar, Humacao, Puerto
Rico, consisting of an 18 hole championship golf course known as
the Flamboyan Course, an 18 hole golf course known as Palm Course,
a 22,200 square feet golf clubhouse, a 5,600 square feet beach
club house, a tennis club, and other related facilities.
Palmas filed for Chapter 11 bankruptcy protection on August 4,
2010 (Bankr. D.P.R. Case No. 10-07072). Alexis Fuentes-Hernandez,
Esq., at Fuentes Law Offices, assists the Debtor in its
restructuring effort. The Debtor estimated its assets and debts
at $1 million to $100 million.
PETER STROMBERG: Case Summary & 20 Largest Unsecured Creditors
--------------------------------------------------------------
Debtor: Peter Thomas Stromberg
9849 SE Sandpine Lane
Hobe Sound, FL 33455
Bankruptcy Case No.: 10-33882
Chapter 11 Petition Date: August 13, 2010
Court: U.S. Bankruptcy Court
Southern District of Florida (West Palm Beach)
Judge: Erik P. Kimball
Debtor's Counsel: John E. Page, Esq.
2385 NW Executive Center Drive, #300
Boca Raton, FL 33431
Tel: (561) 443-0819
Fax: (561) 998-0047
E-mail: jpage@sfl-pa.com
Scheduled Assets: $1,644,629
Scheduled Debts: $5,764,005
A list of the Debtor's 20 largest unsecured creditors
filed together with the petition is available for free
at http://bankrupt.com/misc/flsb10-33882.pdf
PHOENIX FOOTWEAR: Posts $201,000 Net Income for June 30 Quarter
---------------------------------------------------------------
Phoenix Footwear Group Inc. reported results for the second
quarter ended July 3, 2010.
* Net earnings of $201,000, or $0.03 per share, compared to a
net loss of $5.1 million, or $0.63 per share, for the second
quarter of 2009.
* Loss from continuing operations of $1.1 million compared to a
loss of $2.1 million for the second quarter of 2009.
* Net sales of $3.8 million, down 5% compared to net sales of
$4.0 million for the second quarter of 2009.
* Funded bank debt balance of $2.2 million at the close of the
second quarter, down 27% compared to $3.0 million at the close
of the fourth quarter of 2009.
The Company's balance sheet at July 3, 2010, showed $12.03 million
in total assets, $6.88 million in total liabilities, and a total
stockholders' equity of $5.15 million.
Russell Hall, President and Chief Executive Officer, commented,
"The second quarter is always our seasonally weakest of the year.
Additionally, our results this quarter were heavily impacted by
retailers' reorder activity. We experienced solid demand for our
products and good sell through at retail, however customers'
efforts to minimize their inventories generated weaker follow on
sales for the quarter than would otherwise have been normal.
During the quarter we again were able to produce growth in
Trotters and based upon a strong future order backlog, we expect
to generate solid growth during the third quarter in both our
Trotters and SoftWalk brands. Our sales organization has been
able to make continued progress in opening new doors and more
recently we have introduced a new toning product called
'HealthGlide' under our SoftWalk label. This product is being
offered as a casual alternative within this athletically dominated
market segment. We believe this new initiative has the potential
to add significantly to our SoftWalk sales and we are currently in
the market generating sales orders. We plan to have HealthGlide
reach retail floors this December."
A full-text copy of the Company's earnings release is available
for free at http://ResearchArchives.com/t/s?690a
A full-text copy of the Company's Form 10-Q is available for free
at http://ResearchArchives.com/t/s?690b
About Phoenix Footwear
Based in Carlsbad, California, Phoenix Footwear Group, Inc. (NYSE
Amex: PXG) specializes in quality comfort women's and men's
footwear with a design focus on fitting features. Phoenix
Footwear designs, develops, markets and sells footwear in a wide
range of sizes and widths under the brands Trotters(R),
SoftWalk(R), and H.S. Trask(R). The brands are primarily sold
through department stores, leading specialty and independent
retail stores, mail order catalogues and internet retailers and
are carried by approximately 650 customers in more than 900 retail
locations throughout the U.S. Phoenix Footwear has been engaged
in the manufacture or importation and sale of quality footwear
since 1882.
* * *
According to the Troubled Company Reporter on May 17, 2010,
Phoenix Footwear Group, Inc., warned in a regulatory filing with
the Securities and Exchange Commission that it does not expect it
will be in compliance with a covenant under an agreement with
First Community Financial as of the end of May 2010. First
Community Financial is a division of Pacific Western Bank.
PHYSICAL PROPERTY: Posts HK138,000 Net Loss in Q2 Ended June 30
---------------------------------------------------------------
Physical Property Holdings Inc. filed its quarterly report on Form
10-Q, reporting a net loss of HK$138,000 on HK$164,000 of revenue
for the three months ended June 30, 2010, compared with a net loss
of HK$104,000 on HK$133,000 of revenue for the same period of
2009.
The Company's balance sheet as of June 30, 2010, showed
HK$10,842,000 in total assets, HK$10,974,000 in total liabilities,
and a stockholders' deficit of HK$132,000.
"The Company had negative working capital of HK$1,107,000 as of
June 30, 2010, and incurred losses of HK$279,000 and HK$239,000
for the six months ended June 30, 2010, and 2009, respectively.
These conditions raised substantial doubt about the Company's
ability to continue as a going concern."
A full-text copy of the Form 10-Q is available for free at:
http://researcharchives.com/t/s?693a
Physical Property Holdings Inc. (formerly known as Physical Spa &
Fitness Inc.), through its wholly-owned subsidiary Good Partner
Limited, owns five residential apartments located in Hong Kong.
The Company was incorporated on September 21, 1988, under the laws
of the United States of America.
POINT BLANK: Wants Examiner Requests Heard September 1
------------------------------------------------------
Carla Main at Bloomberg News reports that Point Blank Solutions
Inc. filed an "emergency motion" Aug. 12, asking the U.S.
Bankruptcy Court in Wilmington, Delaware, to delay the hearing on
a request made by the U.S. trustee to appoint an examiner. Point
Blank asked for the hearing to take place Sept. 1, the same day as
the hearing on the motion made by the official committee of
unsecured creditors seeking the appointment of a Chapter 11
trustee, or alternatively, an examiner. The Debtor says the
subjects of the two motions "overlap," and it would be "both a
waste of estate and judicial resources" to try twice the issues
relating to the examiner appointment.
About Point Blank
Headquartered in Pompano Beach, Florida, Point Blank Solutions,
Inc. -- http://www.pointblanksolutionsinc.com/-- designs and
produces body armor systems for the U.S. Military, Government and
law enforcement agencies, well as select international markets.
The Company is recognized as the largest producer of soft body
armor in the U.S. The Company maintains facilities in Pompano
Beach, Florida and Jacksboro, Tennessee.
Point Blank Solutions filed for Chapter 11 on April 14, 2010
(Bankr. D. Del. Case No. 10-11255). Laura Davis Jones, Esq., and
Timothy P. Cairns, Esq., at Pachulski Stang Ziehl & Jones LLP
serve as bankruptcy counsel to the Debtor. Olshan Grundman Frome
Rosenweig & Wolosky LLP serves as corporate counsel. T. Scott
Avila of CRG Partners Group LLC is the restructuring officer.
The U.S. Trustee has appointed an Official Committee of Unsecured
Creditors and a separate Official Committee of Equity Security
Holders in the case. The Equity Committee has tapped Morrison
Cohen LLP, and The Bayard, P.A., as counsel.
PREFERRED VOICE: Posts $403,055 Net Income for June 30 Quarter
--------------------------------------------------------------
Preferred Voice, Inc., reported a net income of $403,055 on
$1.468 million of net sales for the three months ended June 30,
2010, compared with a net income of $172,620 on $1.098 million of
net sales for the same period in 2009.
As of June 30, 2010, the Company reported $1.44 million in total
assets and $1.19 million in total liabilities, all current, and a
stockholders' equity of $250,034.
A full-text copy of the Company's Form 10-Q is available at no
charge at http://ResearchArchives.com/t/s?6911
About Preferred Voice
Preferred Voice, Inc., provides enhanced services to the
telecommunications industry throughout the United States and
maintains its principal offices in Dallas, Texas.
In the annual report for the fiscal year ended March 31, 2010,
Preferred Voice's management noted, "The Company has suffered
significant operating losses in past years. As shown in the
accompanying financial statements, the Company has only shown a
profit of $736,589 and $43,617 for the years ended March 31,
2010 and 2009, respectively while it incurred net loss of $747,816
for the year ended March 31, 2008. The Company had positive cash
flow from operations of $1,094,243 and $310,242 for the years
ended March 31, 2010 and 2009, respectively but experienced
negative cash flows from operations of $130,777 for the year ended
March 31, 2008. These factors, among others, may indicate that
the Company will be unable to continue as a going concern for a
reasonable period of time."
RADIENT PHARMACEUTICALS: Reports on Exchange Pact Signed Last Year
------------------------------------------------------------------
Radient Pharmaceuticals Corporation disclosed in a Form 8-K filed
last August 12 that it failed to timely disclose that it entered
into an exchange agreement with a lender in September last year.
Radient recounts that on March 16, 2010, it disclosed in a Form 8-
K that, in an effort to preserve its cash, it entered into
exchange agreements with some of its debt holders. It entered
into such an exchange agreement with holders of the 12% notes it
issued in December 2008 and January, May and June 2009 pursuant to
which the note holders will exchange their outstanding notes or
other debt obligations for shares of its common stock, pending
shareholder and NYSE Amex approval of same."
The Company also disclosed that it amended a consulting agreement
with one of its corporate consultants, pursuant to which the
consultant will receive shares of its common stock in lieu of its
cash compensation, pending shareholder and NYSE Amex approval of
same.
The Company is holding a shareholder meeting on August 31, 2010 to
obtain this approval.
The Exchange Agreement
"While preparing the proxy statement for the shareholder meeting,
we recognized that we inadvertently failed to disclose that we
also entered into an exchange agreement with the holder of a note
we issued in September 2009 in the March 16 8-K," the Company said
in an August 12, 2010 regulatory filing.
On September 10, 2009, the Company entered into a Bridge Loan
Agreement with an investor whereby the Investor provided the
Company with a Bridge Loan for $58,000 at an interest rate of 12%
per annum, which was due and payable -- together with all accrued
and unpaid interest -- on or before December 1, 2009. The
Investor also received a two-year warrant to purchase up to
116,000 shares of our Common Stock exercisable at $0.60 per share.
Pursuant to the terms of the Bridge Loan Agreement, since the
Bridge Loan was not paid before October 9, 2009, the Interest Rate
automatically increased to 18% per annum, which was retroactive as
of September 10, 2009, until the Bridge Loan is paid in full.
Accordingly, the Company will owe a total of $15,638 in interest
payments through August 30, 2010. Under the Bridge Loan
Agreement, we agreed to pay the Investor $2,000 to reimburse the
Investor for legal fees related to the default. Additionally,
since the Bridge Loan was not repaid by December 1, 2009, $25,000
was added to the principal value of the Bridge Loan obligation,
making the principle value of the Bridge Loan $83,000, plus up to
$10,000 for any out-of-pocket legal costs that the Investor may
incur to collect the obligation. Although we did not receive any
notice from the holder of the Bridge Loan requesting acceleration
of payment due to the default, the Bridge Loan was due and owing.
The Company added, "For the same reasons as set forth in the March
16 8-K, management believed it was prudent to reserve our cash for
business operations, rather than the repayment of debt, and pay
the Bridge Loan and all related interest and fees in shares of our
common stock. Although the ultimate exchange and issuance of
shares is subject to shareholder and NYSE Amex approval, the
Investor signed the Exchange Agreement and agreed to accept
404,526 shares of common stock in exchange for the principal and
all accrued interest due on the Bridge Loan, as well as all of the
other fees we agreed to pay under the Bridge Loan. In
consideration for entering into the Bridge Loan Exchange
Agreement, we also agreed to reduce the exercise price of the
warrant we originally issued to the Investor to $0.28 per share,
subject to receipt of Shareholder Approval.
"Although the debt holders set forth herein signed an exchange
agreement, they are not enforceable against us until we receive
Shareholder Approval and approval of the NYSE Amex to list the
shares, which we cannot guarantee and therefore the exchange may
never occur. If and when we do receive Shareholder Approval, we
shall file another amendment to the March 16 8-K to disclose the
final amount of debt that shall be exchanged and the total number
of shares issued in exchange thereof."
The shares of Common Stock to be issued pursuant to the debt
exchange with the debt holders or the Bridge Loan Exchange
Agreement will be issued pursuant to Section 4(2) of the
Securities Act for issuances not involving a public offering and
Regulation D promulgated thereunder.
A full-text copy of the Exchange Agreement is available for free
at http://ResearchArchives.com/t/s?6909
About Radient Pharmaceuticals
Headquartered in Tustin, Calif., Radient Pharmaceuticals
Corporation -- http://www.Radient-Pharma.com/-- is an integrated
pharmaceutical company devoted to the research, development,
manufacturing, and marketing of diagnostic, and premium skin care
products.
The Company's balance sheet as of March 31, 2010, showed
$26.4 million in assets, $7.1 million of liabilities, and
$19.3 million of stockholders' equity.
* * *
As reported in the Troubled Company Reporter on April 19, 2010,
KMJ Corbin & Company LLP, in Costa Mesa, Calif., expressed
substantial doubt about the Company's ability to continue as a
going concern. The independent auditors noted that the Company
has incurred a significant operating loss and negative cash flows
from operations in 2009 and has a working capital deficit of
roughly $4.2 million at December 31, 2009.
RAISSI REAL ESTATE: Files Schedules of Assets and Debts
-------------------------------------------------------
Raissi Real Estate Development, LLC, filed with the U.S.
Bankruptcy Court for the Northern District of California its
schedules of assets and liabilities, disclosing:
Name of Schedule Assets Liabilities
---------------- ----------- -----------
A. Real Property $19,500,000
B. Personal Property $484,000
C. Property Claimed as
Exempt
D. Creditors Holding
Secured Claims $10,829,355
E. Creditors Holding
Unsecured Priority
Claims $0
F. Creditors Holding
Unsecured Non-priority
Claims $3,971,620
----------- -----------
TOTAL $19,984,000 $14,800,975
Santa Clara, California-based Raissi Real Estate Development, LLC,
filed for Chapter 11 bankruptcy protection on June 30, 2010
(Bankr. N.D. Calif. Case No. 10-56855). John Walshe Murray, Esq.,
and Rachel Patience Ragni, Esq., at the Law Offices of Murray and
Murray, assists the Debtor in its restructuring effort. The
Company estimated its assets and debts at $10 million to
$50 million as of the Petition Date.
RANJIT SINGH: Case Summary & 13 Largest Unsecured Creditors
-----------------------------------------------------------
Joint Debtors: Ranjit Singh
Mandeep Kaur
69 Morrison Avenue, Apartment 2
Somerville, MA 02144
Bankruptcy Case No.: 10-18805
Chapter 11 Petition Date: August 13, 2010
Court: United States Bankruptcy Court
District of Massachusetts (Boston)
Judge: Henry J. Boroff
Debtors' Counsel: Gail A. Balser, Esq.
LAW OFFICE OF GAIL BALSER
182 North Main Street
Attleboro, MA 02703
Tel: (508) 699-2500
Fax: (508) 699-2501
E-mail: gail@bklaw.me
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
A list of the Joint Debtors' 13 largest unsecured creditors
filed together with the petition is available for free
at http://bankrupt.com/misc/mab10-18805.pdf
RESCARE INC: Onex Corporation Proposal Cues Moody's Rating Review
-----------------------------------------------------------------
Moody's Investors Service placed the ratings of ResCare, Inc,
under review for possible downgrade. The review was prompted by
the announcement that the company has received a proposal from
Onex Corporation to acquire all of the outstanding shares of
common stock of ResCare, not owned by affiliates of Onex (the
affiliates of Onex are currently shareholders of ResCare).
The review will monitor the events related to the buyout
announcement. Should ResCare be taken private, the review will
consider the future capital structure of the company, potential
issues that could arise with being a private company, and the
ongoing litigious nature of the industry. In addition, the review
will consider ResCare's liquidity profile, operational direction,
and growth strategy.
These ratings were placed under review for possible downgrade:
* Corporate family rating, Ba3;
* Probability of default rating, Ba3;
* $275 million revolving credit facility, due 2013, Ba1 (LGD2,
19%);
* $150 million Senior Notes, due 2013, B1 (LGD5, 75%);
LGD rates are subject to change.
The last rating action was January 19, 2010, when Moody's
confirmed the company's Ba3 corporate family rating and changed
the outlook to negative.
ResCare's ratings were assigned by evaluating factors Moody's
believe are relevant to the credit profile of the issuer, such as
i) the business risk and competitive position of the company
versus others within its industry, ii) the capital structure and
financial risk of the company, iii) the projected performance of
the company over the near to intermediate term, and iv)
management's track record of tolerance for risk. These attributes
were compared against other issuers both within and outside of
ResCare's core industry and the ratings are believed to be
comparable to those other issuers of similar credit risk.
ResCare, headquartered in Louisville, Kentucky, is a provider of
residential, training, educational and support services to
individuals with special needs, including persons with mental
retardation and developmental disabilities, at-risk youth and
those experiencing barriers to employment. Consolidated revenues
for the twelve months ended June 30, 2010 were approximately
$1.6 billion.
RES-CARE INC: S&P Puts 'BB-' Rating on CreditWatch Negative
-----------------------------------------------------------
Standard & Poor's Ratings Services said it placed its 'BB-'
corporate credit rating, and all of S&P's issue-level ratings, on
Louisville, Ky.-based Res-Care Inc. on CreditWatch with negative
implications.
"The CreditWatch placement reflects a weaker financial risk
profile that will most likely occur if private-equity firm Onex
Corp. acquires Res-Care," explained Standard & Poor's credit
analyst Tahira Y. Wright.
"The ratings on Res-Care reflect its susceptibility to state
budget cuts, operating in a highly fragmented market, and already-
slim profit margins," added Ms. Wright. These are predominating
risk factors despite the company's successful track record of
acquisitive growth, which has allowed it to expand and diversify
its core operations.
The weak business profile continues to reflect ongoing pressures
in the company's community services and schools divisions in the
near future, despite its being one of the largest providers of
home care for the elderly and individuals with disabilities, the
second-largest contractor of Job Corps services, and a provider of
schools and job placement services. Because of the weak
macroeconomic environment, some states have had to impose budget
cuts that have contributed to scaled-back growth opportunities for
Res-Care in these divisions. This trend, combined with lost
contracts from its Job Corps business, has been the key
contributing factor in past revisions of its earnings guidance.
In fact, Res-Care expects continued budget cut pressure from such
states as Texas, Louisiana, Oklahoma, Colorado, and Missouri.
While the company has been successful in partly offsetting past
rate cuts with acquisitive activity, year-to-date revenues and
EBITDA margins have slightly declined by 2% and 20 basis points,
respectively, as of June 30, 2010. The recent acquisition of
ReadyCare Inc. and other tuck-in acquisitions in its homecare
business are likely to add $50 million in annual revenues
($30 million in 2010) that will help support the company's overall
growth strategy and could possibly outweigh future near-term rate
and program cuts. The company's reorganization of its business
lines will hopefully allow it to better track its organic and
strategic growth prospects across its many service areas.
The current aggressive financial risk profile reflects total
lease-adjusted debt to EBITDA of about 3.3x, debt to total capital
close to 50% and funds from operations to debt around 30% as of
June 30, 2010.
"However," added Ms. Wright, "debt leverage could increase if the
company accepts the offer by Onex which, given the nature of a
financial-sponsor type purchase, would probably be financed
primarily with debt." Res-Care currently has no near-term
maturities; they were extended in early 2010 when a new credit
facility was put in place that also increased covenant headroom.
The company was also successful in reducing the original
$54 million New Mexico legal judgment to $16 million. It plans to
remain aggressive in supporting its strategic growth efforts that
S&P believes it will primarily fund through free operating cash
flows.
The proposal, currently being evaluated by a special committee
formed by Res-Care's board of directors, expires Sept. 1, 2010,
unless accepted.
"S&P will monitor the success of this or other potential offers to
buy the company that will likely leverage the balance sheet,
before taking further rating action," concluded Ms. Wright.
SAINT VINCENTS: NY City Council Speaker Rips Executives
-------------------------------------------------------
Sally Goldenberg at The New York Post reports that NY City Council
Speaker Christine Quinn ripped into now-defunct St. Vincent's
Hospital, calling its executives hypocrites for allegedly raking
in high salaries and paying consultants top dollar while cutting
the wages of midlevel workers.
"Orderlies, janitors, technicians, people who draw blood took cuts
in their pay and the leaders didn't? That's just a disgrace!" Ms.
Quinn (D-Manhattan) fumed in response to a Post report that the
Greenwich Village hospital went on a "highly questionable"
spending spree before it closed.
The Post says the binge allegedly included a $278,000 golf outing
and spending $10 million in salaries in one year on its top 10
executives, according to legal papers to be filed in Manhattan.
"Hospital executive salaries are a very competitive thing in the
City of New York, and I'm not going to say what they should or
shouldn't be," said Ms. Quinn. "But I am going to say that [St.
Vincent's] has been in bankruptcy, come out of bankruptcy and gone
back into bankruptcy, and if you are asking -- as St. Vincent's
did -- orderlies and technicians to take pay cuts, you better
stand up and lead by example, because it is the ultimate in
hypocrisy to do what they did."
About Saint Vincent Catholic Medical Centers
Saint Vincent Catholic Medical Centers -- http://www.svcmc.org/--
is anchored by St. Vincent's Hospital Manhattan, an academic
medical center located in Greenwich Village and the only emergency
room on the Westside of Manhattan from Midtown to Tribeca, St.
Vincent's Westchester, a behavioral health hospital in Westchester
County, and continuing care services that include two skilled
nursing facilities in Brooklyn, another on Staten Island, a
hospice, and a home health agency serving the Metropolitan New
York area. Its behavioral health services also provide supportive
housing programs for people with mental illness throughout the
Metropolitan area. Saint Vincent's is the designated provider for
the New York and New Jersey region of the US Family Health Plan
sponsored by the US Department of Defense. Saint Vincent's serves
as the academic medical center of New York Medical College in New
York City. The healthcare organization is sponsored by the Roman
Catholic Bishop of Brooklyn and the president of the Sisters of
Charity of New York.
Saint Vincent Catholic Medical Centers of New York and six of its
affiliates filed for Chapter 11 protection on July 5, 2005 (Bankr.
S.D.N.Y. Case No. 05-14945 through 05-14951). Gary Ravert, Esq.,
and Stephen B. Selbst, Esq., at McDermott Will & Emery, LLP, filed
the Debtors' Chapter 11 cases. On September 12, 2005, John J.
Rapisardi, Esq., at Weil, Gotshal & Manges LLP took over
representing the Debtors in their restructuring efforts. Martin
G. Bunin, Esq., at Thelen Reid & Priest LLP, represented the
Official Committee of Unsecured Creditors. As of April 30, 2005,
the Debtors listed $972 million in total assets and $1 billion in
total debts. The Court confirmed the Debtors' Chapter 11 plan on
July 27, 2007.
St. Vincent Catholic Medical Centers and its affiliates returned
to the bankruptcy court by filing another Chapter 11 petition on
April 14, 2010 (Bankr. S.D.N.Y. Case No. 10-11963). The new
petition listed assets of $348 million against debt totaling
$1.09 billion. Adam C. Rogoff, Esq., and Kenneth H. Eckstein,
Esq., at Kramer Levin Naftalis & Frankel LLP, assist the Debtors
in their restructuring effort. The Debtors' special counsel is
Garfunkel Wild, P.C., while their Crisis Management Team is led by
Grant Thornton LLP. The Debtors' Chief Restructuring Officer is
Mark E. Toney.
SALINAS INVESTMENTS: Files Schedules of Assets and Liabilities
--------------------------------------------------------------
Salinas Investments, Ltd., filed with the U.S. Bankruptcy Court
for the Western District of Texas its schedules of assets and
liabilities, disclosing:
Name of Schedule Assets Liabilities
---------------- ----------- -----------
A. Real Property $16,110,192
B. Personal Property $1,450,851
C. Property Claimed as
Exempt
D. Creditors Holding
Secured Claims $2,709,727
E. Creditors Holding
Unsecured Priority
Claims $0
F. Creditors Holding
Unsecured Non-priority
Claims $1,560,234
----------- -----------
TOTAL $17,561,043 $4,269,961
San Antonio, Texas-based Salinas Investments, Ltd, filed for
Chapter 11 bankruptcy protection on July 2, 2010 (Bankr. W.D. Tex.
Case No. 10-52525). William B. Kingman, Esq., who has an office
in San Antonio, Texas, assists the Company in its restructuring
effort. The Company estimated $10 million to $50 million in
assets and $1 million to $10 million in debts in its Chapter 11
petition.
SAMSONITE COMPANY: Case Closed, to Satisfy Unliquidated Claims
--------------------------------------------------------------
The Hon. Peter J. Walsh of the U.S. Bankruptcy Court for the
District of Delaware closed the Chapter 11 case of Samsonite
Company Stores LLC, the U.S. retail division of Samsonite Corp.
The Court also ordered that (i) the unliquidated claims will be
subject to liquidation; and (ii) the Debtor will maintain $14,340
in the reserve account established to satisfy the distributions
for unliquidated claims.
About Samsonite Company
Samsonite Corp. is the worldwide leader in superior travel bags,
luggage and accessories, combining notable style with the latest
design technology and the utmost attention to quality and
durability. In 2006 and 2007, the Company had sales of
$1.1 billion and $1.2 billion, respectively.
Offering superior travel bags, luggage and accessories, under the
Samsonite, Samsonite Black Label, and American Tourister brands,
Samsonite Company Stores LLC operates full-price and outlet stores
in 38 states across the U.S. The Company is a wholly-owned
subsidiary of Samsonite Corporation.
As of July 31, 2009, Samsonite Company Stores leased 173 retail
stores in the United States located in 38 states. It employs
approximately 650 people and had sales of $112 million and
$108.1 million in 2007 and 2008, respectively. As of July 31,
2009, it had $233 million in total assets and $1.5 billion in
total liabilities.
Samsonite Company Stores filed for Chapter 11 on September 2, 2009
(Bankr. D. Del. Case No. 09-13102). Attorneys at Young Conaway
Stargat & Taylor LLP and Paul, Wess, Rifkin, Wharton & Garrison
LLP serve as bankruptcy counsel to the Debtor. Hilco Merchant
Resources LLC is liquidation agent. Epiq Bankruptcy Solutions LLC
serves as claims and notice agent.
U.S. Bankruptcy Judge Peter Walsh has confirmed a reorganization
plan for Samsonite Company Stores. All creditors and interest
holders are to recover 100% of their claims or interests.
SK HAND: Files Schedules of Assets and Liabilities
--------------------------------------------------
SK Hand Tool Corporation files 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 $4,050,000
B. Personal Property $10,672,441
C. Property Claimed as
Exempt
D. Creditors Holding
Secured Claims $11,570,580
E. Creditors Holding
Unsecured Priority
Claims $310,226
F. Creditors Holding
Unsecured Non-priority
Claims $4,635,060
----------- -----------
TOTAL $14,722,441 $16,515,866
SK Hand Tool Corporation was founded in Chicago in 1921 as a
manufacturer of hand tools and power tools, which it distributes
through independent dealers. It has manufacturing facilities in
Chicago and Defiance, Ohio, although Defiance is currently not
operating.
SK Hand filed for Chapter 11 protection on June 29, 2010 (Bankr.
N.D. Ill. Case No. 10-28882). Colleen E. McManus, Esq., and Kurt
M. Carlson, Esq., at Much Shelist, serve as counsel to the Debtor.
The Company estimated its assets and debts at $10 million to
$50 million as of the Petition Date.
SMART ONLINE: Posts $488,000 Net Loss for June 30 Quarter
---------------------------------------------------------
Smart Online Inc. filed its quarterly report on Form 10-Q,
reporting net loss of $487,999 on $259,718 of total revenues for
the three months ended June 30, 2010, compared with net loss of
$1.73 million on $370,647 of total revenues for the same period a
year ago.
The Company's balance sheet at June 30, 2010, showed $1.05 million
in total assets, $17.84 million in total liabilities, and a
$16.78 million stockholders' deficit. Stockholders' deficit was
$16.31 million at March 31.
A full-text copy of the Company's Form 10-Q is available for free
at http://ResearchArchives.com/t/s?6904
About Smart Online
Headquartered in Durham, North Carolina, Smart Online, Inc. (OTC
BB: SOLN) -- http://www.smartonline.com/-- develops and markets
software products and services targeted to small businesses that
are delivered via a Software-as-a-Service (SaaS), or SaaS, model.
The Company also provides website consulting services, primarily
in the e-commerce retail industry products and services.
SUNESIS PHARMA: Posts $4.8 Milllion Net Loss for June 30 Quarter
----------------------------------------------------------------
Sunesis Pharmaceuticals Inc. reported that net loss was $4.8
million for the second quarter of 2010. For the first half of
2010, net loss was $9.4 million.
The balance sheet at June 30, 2010, showed $49.84 million in total
assets, $5.53 million in current liabilities, $61,700 in non-
current portion of deferred rent, and $44.25 million total
stockholders' equity. Accumulated deficit is $365.85 million at
June 30.
As of June 30, Sunesis had cash and cash equivalents of $49.3
million.
Financial highlights for the quarter include:
* In June, Sunesis received gross proceeds of $28.5 million
from the sale of common stock in the third and final tranche
of its private placement pursuant to the March 2009
securities purchase agreement with a group of accredited
investors. In conjunction with this common stock closing,
all outstanding shares of Series A convertible preferred
stock issued in the April and October 2009 closings of the
private placement were converted into common stock. Net
proceeds from the closing will be approximately $26.7
million, with associated fees to the placement agents to be
paid in the third quarter.
* In April, Sunesis entered into a controlled equity offering
sales agreement with Cantor Fitzgerald & Co. pursuant to
which the Company may issue and sell shares of common stock
from time to time with aggregate proceeds of up to $20.0
million. As of June 30, 2010, Sunesis had sold 11.7 million
shares of common stock, raising gross proceeds of $10.7
million. Net proceeds after expenses and commissions were
$10.3 million.
* Revenues for the three and six months ended June 30, 2010
were $15,000 and $27,000, compared to $3.5 million and $3.7
million for the same periods in 2009. Revenue in the 2009
periods was primarily comprised of a $1.5 million milestone
earned from Biogen Idec's selection of a Raf kinase inhibitor
development candidate for the treatment of cancer and $2.0
million from the sale to SARcode of the Company's interest in
all patents and related know-how that had previously been the
subject of a license agreement with them.
* Research and development expenses decreased to $3.0 million
and $6.1 million for the three and six months ended June 30,
2010, compared to $3.4 million and $7.7 million for the same
periods in 2009. The decrease of $0.4 million between the
three month periods was primarily due to a decrease in
clinical expenses. The decrease of $1.6 million between the
six month periods was primarily due to decreases in clinical
expenses, outside services and facility costs.
* General and administrative expenses for the three and six
months ended June 30, 2010 were $1.9 million and $3.4
million, compared to $2.0 million and $4.3 million for the
same periods in 2009. The decrease of $0.9 million between
the six month periods was primarily due to reduced
administrative headcount from the March 2009 restructuring
and reduced facility costs.
* Sunesis reported net loss of $4.8 million and $9.4 million
for the three and six months ended June 30, 2010, compared to
net loss of $22.9 million and $31.2 million for the same
periods in 2009.
* Cash used in operations was $4.2 million and $8.0 million for
the three and six months ended June 30, 2010, compared to
$5.8 million and $12.4 million for the same periods in 2009.
"The second quarter was an important period for Sunesis, as we
reached key clinical, regulatory and financial milestones leading
up to the launch of our planned Phase 3 pivotal trial of vosaroxin
in acute myeloid leukemia in the second half of this year," said
Daniel Swisher, Chief Executive Officer of Sunesis. "During the
period, important Phase 2 data on vosaroxin's activity and safety
in AML and ovarian cancer were presented at the ASCO annual
meeting, we received scientific advice from the EMA on our
proposed development plans for vosaroxin, and we strengthened our
balance sheet. We continue to make progress toward the initiation
of our pivotal Phase 3 trial, known as the VALOR trial, and are
working toward ensuring its successful launch and execution."
A full-text copy of the Company's earnings release is available
for free at http://ResearchArchives.com/t/s?68f9
About Sunesis Pharmaceuticals
South San Francisco, Calif.-based Sunesis Pharmaceuticals, Inc.
(NASDAQ: SNSS) -- http://www.sunesis.com/-- is a
biopharmaceutical company focused on the development and
commercialization of new oncology therapeutics for the treatment
of hematologic and solid tumor cancers.
The Company's balance sheet as of March 31, 2010, showed
$15,329,511 in assets, $3,541,245 of liabilities, and $11,788,266
of stockholders' equity.
* * *
As reported in the Troubled Company Reporter on April 6, 2010,
Ernst & Young, LLP, in Palo Alto, Calif., expressed substantial
doubt about the Company's ability to continue as a going concern
after auditing the Company's financial statements for 2009. The
independent auditors noted that of the Company's recurring losses
from operations.
SYNERGY HEMATOLOGY: Patient Care Ombudsman Can Hire Counsel
-----------------------------------------------------------
WestLaw reports that a bankruptcy judge in California has held, in
a case of apparent first impression, that a bankruptcy court may
exercise its power to issue any "necessary or appropriate" order,
process or judgment in order to appoint counsel to represent a
patient care ombudsman. Moreover, appointment of counsel for a
patient care ombudsman previously appointed in the Chapter 11 case
of a financially troubled health care business was appropriate to
answer the patient care ombudsman's questions about his duties
under bankruptcy law and to assist him in the filing and service
of documents. In re Synergy Hematology-Oncology Medical
Associates, Inc., --- B.R. ----, 2010 WL 28537, Bankr. L. Rep. P
81,697 (Bankr. C.D. Cal.).
Synergy Hematology - Oncology Medical Associates, Inc., located in
Los Angeles, Calif., sought chapter 11 protection (Bankr. C.D.
Calif. Case No. 08-29315) on Nov. 12, 2008, and is represented by
Thomas J. Polis, Esq. -- tom@polis-law.com -- at Polis &
Associates, APLC, in Irvine, Calif. At the time of the filing,
Synergy Hematology estimated its assets and debts at less than
$10 million.
TACO DEL MAR: May Sell Assets at September Auction
--------------------------------------------------
Dow Jones DBR Small Cap reports that Taco Del Mar Franchising
Corp. won court approval to put its assets on the auction block
next month with a leading bid from an affiliate of private-equity
firm Blackstreet Capital Advisors LLC.
Founded in Seattle, Washington, in 1992 by brothers James and John
Schmidt, Taco Del Mar is a quick-service casual restaurant chain
inspired by southern Baja, Mexico, and coastal beach shacks known
for serving some of the tastiest burritos and tacos. Today, Taco
Del Mar operates in more than 225 locations throughout the U.S.,
Canada and Guam.
Taco Del Mar Franchising Corp. and its affiliate, Conrad & Barry
Investments Inc., filed for Chapter 11 bankruptcy protection
(Bankr. W.D. Wash. Case No. 10-10528) on January 22, 2010. Andrew
J Liese, Esq., and George S. Treperinas, Esq., at Karr Tuttle
Campbell, assists the Company in its restructuring effort. The
Company listed $10 million to $50 million in assets and $50
million to $100 million in liabilities.
TELECONNECT INC: Sales Drop 99.7% in Second Quarter of 2010
-----------------------------------------------------------
Teleconnect Inc. filed its quarterly report on Form 10-Q,
reporting a $183,388 net loss on $248 of sales for the three
months ended June 30, 2010, compared with a $504,418 net loss on
$92,354 sales for the same period a year earlier.
Explaining the revenue decrease, the Company said, "Age
verification is at the core of our new strategy. Calling credit
generated sales early this fiscal year but with insufficient
margin for Mediawizz. In addition, these calling credit sales
involve credit risk and were therefore terminated. Mediawizz'
activities are being transformed to be fully complimentary to
Teleconnect's future core business. The decrease in sales is
attributed to this transformation and the re-scheduling of
installations, which is now planned to take off in the first
fiscal quarter of 2011."
The Company's balance sheet at June 30, 2010, showed $1.86 million
in total assets, $2.90 million in total liabilities, all current,
and stockholders' deficit of $1.04 million.
A full-text copy of the Company's Form 10-Q is available for free
at http://ResearchArchives.com/t/s?68fc
About Teleconnect Inc.
Based in Breda, The Netherlands, Teleconnect Inc. (OTC: TLCO)
-- http://teleconnect.es/-- derives its revenues from continuing
operations primarily from the sale of multimedia kiosks and
hardware components to retail chains in the Netherlands. These
kiosks and components can be applied to different functions such
as recharging prepaid telephone cards.
On May 3, 2010, the Company signed a letter of intent to acquire
100% of Hollandsche Exploitatie Maatschappij BV (HEM) in The
Netherlands. The purchase price contemplated by the letter of
intent is 12% of the outstanding common stock of the Company, post
emission. The purchase of HEM is subject to due diligence by
Teleconnect as well as shareholders' approval. HEM, established
in 2007, developed an age validation system, "Ageviewers", which
utilizes the Company's products in its processes.
TEMBEC INDUSTRIES: Pushes Debt Maturities to 2018
-------------------------------------------------
Tembec Inc., said that its wholly owned subsidiary, Tembec
Industries Inc., completed its private offering of US$255 million
in aggregate principal amount of 11.25% Senior Secured Notes due
2018. The notes were sold in a private offering to "qualified
institutional buyers" as defined in Rule 144A under the U.S.
Securities Act of 1933, as amended, and outside the United States
in reliance on Regulation S under the Securities Act. BofA
Merrill Lynch and Credit Suisse Securities (USA) LLC acted as the
joint book-running managers for the offering.
"Tembec established an objective to refinance the outstanding term
debt in 2010. As such, the successful secured note offering marks
the achievement of our goal" said Jim Lopez, President and CEO of
Tembec. "In addition, given improved financial performance, we
reduced long-term debt by US$50 million which demonstrates our
commitment to deleverage the balance sheet. Finally, while
economic challenges continue to exist, the refinancing affords the
Company greater financial flexibility to pursue our long-term
strategic initiatives to transform our operating facilities to
better compete in global markets while maintaining focused
financial discipline."
The notes are senior secured obligations of the Company, secured
by a first priority lien on certain of the property and assets of
the Company and the guarantors of the notes, other than
receivables, inventory and certain intangibles upon which the note
holders have a second priority lien. The notes are guaranteed by
Tembec and certain of the Company's subsidiaries. The proceeds
from the offering, together with cash on hand, were used to
permanently repay all outstanding indebtedness under Tembec's and
the Company's existing US$300 million term loan facility, to pay
prepayment premiums in connection therewith and to pay fees and
expenses related to the offering.
The notes have not been registered under the Securities Act or the
securities laws of any other jurisdiction. In connection with the
offering, the Company has agreed to file an exchange offer
registration statement with the U.S. Securities and Exchange
Commission with respect to an offer to exchange the notes and,
under certain circumstances, a shelf registration statement with
respect to resale of the notes. Until registered, the notes may
be offered or sold only in transactions that are exempt from
registration under the Securities Act or the securities laws of
any other jurisdiction and will therefore be subject to
substantial restrictions on transfer.
Temiscaming, Quebec-based Tembec Inc. -- http://www.tembec.com/--
is a large, diversified and integrated forest products company
which stands as the global leader in sustainable forest management
practices. The Company's principal operations are located in
Canada and France. Tembec's common shares are listed on the
Toronto Stock Exchange under the symbol TMB and warrants under
TMB.WT.
* * *
As reported by the Troubled Company Reporter on August 11, 2010,
Moody's Investors Service assigned Tembec Industries Inc. senior
secured note offering a B3 rating and assigned the company a
corporate family rating of B3, and a liquidity rating of SGL-2.
The outlook is stable. Tembec's B3 CFR reflects the company's
significant exposure to the highly volatile market pulp and wood
products industry segments, the company's exposure to the strength
of the Canadian dollar as well as the volatility of input costs.
Execution risks in management's focus on cost reduction and asset-
base rationalization are also considered, including the potential
for significantly higher capital expenditures as the company
attempts to extract operational improvements from certain high-
cost assets.
As reported by the TCR on August 4, 2010, Standard & Poor's
Ratings Services assigned its 'B-' long-term corporate credit
rating to Tembec Inc. and its subsidiary Tembec Industries Inc.
The outlook on both companies is stable. At the same time, S&P
assigned its 'B-' issue-level rating, with a '3' recovery rating,
to Tembec Industries Inc.'s US$250 million senior secured notes.
The '3' recovery rating indicates S&P's expectation of meaningful
(50%-70%) recovery in the event of default.
"The rating on Tembec reflects what S&P views as the company's
exposure to the cyclical housing construction market, volatility
in pulp prices and currency, historically weak profitability, and
high leverage," said Standard & Poor's credit analyst Jatinder
Mall. "The weaknesses are somewhat mitigated in S&P's opinion by
asset and product diversification and an improving cost profile,"
Mr. Mall added.
TRENTON LAND: Files Schedules of Assets and Liabilities
-------------------------------------------------------
Trenton Land Holdings, LLC, filed with the U.S. Bankruptcy Court
for the Eastern District of Michigan its schedules of assets and
liabilities, disclosing:
Name of Schedule Assets Liabilities
---------------- ----------- -----------
A. Real Property $16,726,075
B. Personal Property $0
C. Property Claimed as
Exempt
D. Creditors Holding
Secured Claims $49,200,348
E. Creditors Holding
Unsecured Priority
Claims $0
F. Creditors Holding
Unsecured Non-priority
Claims $16,725,248
----------- -----------
TOTAL $16,726,075 $65,925,596
Trenton, Michigan-based Trenton Land Holdings, LLC, filed for
Chapter 11 bankruptcy protection on June 29, 2010 (Bankr. E.D.
Mich. Case No. 10-60990). Karin F. Avery, Esq., at Silverman &
Morris, P.L.L.C., assists the Debtor in its restructuring effort.
The Company estimated its assets and debts at $10 million to
$50 million as of the Petition Date.
TREY RESOURCES: Posts $789,416 Net Loss for June 30 Quarter
-----------------------------------------------------------
Trey Resources Inc. filed its quarterly report on Form 10-Q,
reporting a net loss of $789,416 on $1.78 million of sales for the
three months ended June 30, 2010, compared with a net income of
$542,682 on $1.80 million of sales for the same period a year ago.
The Company's balance sheet at June 30, 2010, showed total assets
of $997,091, total liabilities of $6.23 million and a
$5.25 million total stockholders' deficit. Stockholders' deficit
was $4,922,261 at Dec. 31, 2009.
A full-text copy of the Company's Form 10-Q is available for fee
at http://ResearchArchives.com/t/s?68f8
About Trey Resources
Livingston, N.J.-based Trey Resources, Inc. operates as a business
consultant, and value-added reseller and developer of financial
accounting software in the United States.
* * *
In its March 27, 2010 report, Friedman LLP in Marlton, New Jersey,
noted the Company has incurred substantial accumulated deficits
and operating losses. "These issues lead to substantial doubt
about the Company's ability to continue as a going concern," the
independent auditors from Friedman said.
TRIAD GUARANTY: Earns $79.1 Million in Q2 Ended June 30
-------------------------------------------------------
Triad Guaranty Inc. filed its quarterly report on Form 10-Q,
reporting net income of $79.1 million on $81.9 million of revenue
for the three months ended June 30, 2010, compared with a net loss
of $359.4 million on $77.7 million of revenue for the same period
of 2009.
Ken Jones, President and CEO, said, "We continued to see
improvement in several key areas during the second quarter of
2010, which allowed us to decrease the reserves held for existing
defaults at June 30, 2010. Higher actual cures experienced during
the first two quarters of 2010 caused us to adjust our reserve
factors during the second quarter for future cure rates on
existing defaults. These adjustments, along with modestly higher
rescission expectations, allowed us to reduce our estimated
reserve for losses. The impact of the change in reserve factors
on our second quarter financial results, coupled with an
additional accrual of earned premiums during the quarter, were the
primary drivers of our net income reported for the quarter. The
earned premium accrual reflects the present value of estimated
future premiums on Modified Pool structures where we have already
paid out the maximum amount that we are contractually required to
pay. While we are seeing improvements in the performance of our
insured portfolio, we remain cautious about the outlook for the
remainder of 2010 and continuing into 2011, as many economists are
now expecting a slower recovery with lingering high unemployment
rates and continued pressure on the residential real estate market
and home prices."
Mr. Jones continued, "As a company in run-off, our primary focus
remains the efficient and effective servicing of our insured
portfolio, particularly with respect to loss management, in order
to maximize our claims-paying ability. While we are pleased by
our 2010 results compared to 2008 and 2009, the income reported in
the second quarter of 2010 was due to items that we believe are
unlikely to occur in the future in similar amounts and it is
unlikely that we will report similar levels of income, and may
report no income at all, in future periods. Furthermore, our
financial position improved only slightly during the second
quarter, and our deficit in assets was $648.1 million at June 30,
2010. To meet all of our existing obligations, we will need to
earn at least $649 million during the remaining run-off of our
business. We believe that absent significant, positive changes in
the economy and the residential real estate market, our existing
assets and future premiums may not be sufficient to meet our
current and future policyholder obligations."
The Company's balance sheet as of June 30, 2010, showed
$1.086 billion in total assets, $1.734 billion in total
liabilities, and a stockholders' deficit of $648.1 million.
As reported in the Troubled Company Reporter on March 22, 2010,
Ernst & Young LLP, in Atlanta, Ga., expressed substantial doubt
about the Company's ability to continue as a going concern,
following its results for 2009. The independent auditors noted
that the Company is operating the business in run-off under
Corrective Orders with the Illinois Department of Insurance and
has reported a net loss for the year ended December 31, 2009, and
has a stockholders' deficiency in assets at December 31, 2009.
The Company acknowledges in its latest 10-Q that there is
substantial doubt as its ability to continue as a going concern,
based on, among other things, the possible inability of Triad to
comply with the provisions of the Corrective Orders and the
Company's ability to generate enough income over the term of the
remaining run-off to overcome the existing $648.1 million deficit
in assets.
The accounting treatment for establishing loss reserves required
by the second Corrective Order has resulted in Triad reporting a
policyholders' surplus (in accordance with Statutory Accounting
Principles (SAP) as set forth in the Illinois Insurance Code) of
$155.2 million at June 30, 2010. Absent this requirement, Triad
would have reported a deficiency in policyholders' surplus of
$624.5 million at June 30, 2010, under SAP. The ultimate payment
of the deferred payment obligations and related carrying charges
will be subject to Triad's future financial performance and will
require approval of the the Illinois Department of Insurance and
its director. Failure to comply with the provisions of the
Corrective Orders could result in the imposition of fines or
penalties or subject Triad to further legal proceedings, including
receivership proceedings for the conservation, rehabilitation or
liquidation of Triad. Any actions like this would likely lead TGI
to institute a proceeding seeking relief from creditors under U.S.
bankruptcy laws.
A full-text copy of the Form 10-Q is available for free at:
http://researcharchives.com/t/s?6910
A full-text copy of the earnings release is available for free at:
http://researcharchives.com/t/s?6912
Winston-Salem, N.C.-based Triad Guaranty Inc. (OTC BB: TGIC)
-- http://www.triadguaranty.com/-- is a holding company which,
through its wholly-owned subsidiary, Triad Guaranty Insurance
Corporation, historically has provided mortgage insurance coverage
in the United States. TGIC is pursuing a run-off of its existing
in-force book of business.
TRUVO USA: Has Final OK to Access Senior Lenders' Cash Collateral
-----------------------------------------------------------------
The Hon. Arthur J. Gonzalez of the U.S. Bankruptcy Court for the
Southern District of New York, in a final order, authorized Truvo
USA LLC, et al., to use the cash collateral of JPMorgan Europe
Limited, as Senior Agent and Security Agent, and the Senior
Lenders.
As reported in the Troubled Company Reporter on July 13, as of the
Petition Date, the Debtors owed approximately EUR777.6 million,
plus accrued interest, under the senior loans, and approximately
EUR173 million under the PIK Loans.
The Debtors may use the cash collateral to fund their Chapter 11
case, pay suppliers and other parties.
As adequate protection for any diminution in value of the lenders'
collateral, the Debtors will grant the senior lenders perfected
replacement liens and replacement security interests, and
superpriority administrative claim.
As additional adequate protection, the Debtors and certain of the
non-Debtor subsidiaries will make adequate protection payments in
the form of: (i) payments in cash of all cash-pay interest (at the
non-default rate), fees and other amounts when and as due under
the Senior Facility Agreement, (ii) ongoing payment of the
reasonable postpetition fees, costs and expenses of the advisors
to the CoComm, the Elliott Lender, the Senior Agent and the
Security Agent, including the reasonable postpetition (and unpaid
prepetition) fees and expenses of legal, financial advisory,
investment banking and other professionals (including Linklaters
LLP, N.M. Rothschild & Sons Limited, Kleinberg, Kaplan, Wolff &
Cohen, P.C., Allen & Overy LLP and any replacement or addition
thereto that the CoComm, the Elliott Lender, the Senior Agent or
the Security Agent deems reasonably appropriate) retained by the
CoComm, the Elliott Lender, the Senior Agent and the Security
Agent, and (iii) the reasonable fees and out-of-pocket
disbursements of the four members of the CoComm.
About Truvo USA
Wilmington, Delaware-based 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.
The Company filed for Chapter 11 bankruptcy protection on July 1,
2010 (Bankr. S.D.N.Y. Case No. 10-13513). Sean A. O'Neal, Esq.,
and Thomas J. Moloney, Esq., at Cleary Gottlieb Steen & Hamilton,
LLP, and Vincent Edward Lazar, Esq., at Jenner & Block LLP, assist
the Debtor in its restructuring effort. The Company estimated
$500 million to $1 billion in assets and more than $1 billion in
liabilities.
Jenner & Block LLP and Simpson Thacher & Bartlett LLP are the
Company's special counsel.
Houlihan Lokey Howard & Zukin (Europe), Limited, is the Company's
restructuring and financial advisor.
TRUVO USA: Files Schedules of Assets and Liabilities
----------------------------------------------------
Truvo USA LLC, filed with the U.S. Bankruptcy Court for the
Southern District of New York its schedules of assets and
liabilities, disclosing:
Name of Schedule Assets Liabilities
---------------- ----------- -----------
A. Real Property $0
B. Personal Property $962,693,050
C. Property Claimed as
Exempt
D. Creditors Holding
Secured Claims $1,670,494,241
E. Creditors Holding
Unsecured Priority
Claims $0
F. Creditors Holding
Unsecured Non-priority
Claims $1,903,224,182
----------- -----------
TOTAL $962,693,050 $3,573,718,423
About Truvo USA
Wilmington, Delaware-based 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.
The Company filed for Chapter 11 bankruptcy protection on July 1,
2010 (Bankr. S.D.N.Y. Case No. 10-13513). Sean A. O'Neal, Esq.,
and Thomas J. Moloney, Esq., at Cleary Gottlieb Steen & Hamilton,
LLP, and Vincent Edward Lazar, Esq., at Jenner & Block LLP, assist
the Debtor in its restructuring effort. The Company estimated
$500 million to $1 billion in assets and more than $1 billion in
liabilities.
Jenner & Block LLP and Simpson Thacher & Bartlett LLP are the
Company's special counsel.
Houlihan Lokey Howard & Zukin (Europe), Limited, is the Company's
restructuring and financial advisor.
TYCOON DEVELOPMENT: Seeks Use of Cash as JPMorgan Objects
---------------------------------------------------------
Carla Main at Bloomberg News reports that Tycoon Development Corp.
asked the U.S. Bankruptcy Court in San Diego for permission to use
its cash collateral after secured creditor JPMorgan Chase & Co.
sought to block such a move.
Bloomberg relates that JPMorgan filed an objection to Tycoon's use
of the cash on Aug. 12. The bank holds debt secured by "all
rents, profits and revenues" collected by Tycoon from a property
in Escondido, California. The court should order Tycoon
Development to "separately account" for the cash collateral and
hold it until the court authorizes Tycoon to use it, JPMorgan said
in court papers.
In response, Tycoon, according to the report, made an "emergency
motion" Aug. 13 asking for a hearing on the use of cash collateral
"consisting of rents and any other income derived from" the
property, according to court files. The money is needed to
"preserve and improve" the property, Tycoon said.
Chula Vista, California-based Tycoon Development Corporation filed
for Chapter 11 in San Diego on August 11, 2010 (Bankr. S.D. Calif.
Case No. 10-14277). Martin A. Eliopulos, Esq., at Higgs, Fletcher
& Mack LLP, in San Diego, California, serves as counsel. The
Debtor estimated assets of less than $50,000 and debts of up to
$50 million in its Chapter 11 petition.
UNIVERSAL BUILDING: Creditors' Committee Appointed
--------------------------------------------------
The U.S. Trustee for Region 3 named five parties to the Official
Committee of Unsecured Creditors appointed in the bankruptcy cases
of Universal Building Products, Inc. and its affiliates,
netDockets Blog reports.
The members of the Creditors' Committee are:
(1) Raytrans Distributin Services, Inc.
(2) King Steel Corporation
(3) Eastern Accessories Corp.
(4) Millennium Metals, LLC
(5) Jade-Sterling Steel Co., Inc.
Westminster, California-based Universal Building Products, Inc.,
dba UBP, filed for Chapter 11 bankruptcy protection on August 3,
2010 (Bankr. D. Del. Case No. 10-12453). Mark Minuti, Esq.;
MaryJo Bellew, Esq.; and Teresa K.D. Currier, Esq., at Saul Ewing
LLP, assists the Debtor in its restructuring effort. The Debtor
estimated its assets at $1,000,001 to $10,000,000 and debts at
$10,000,001 to $50,000,000.
The Debtor's affiliates Accubrace, Inc. (Bankr. D. Del. Case No.
10-12454), Don De Cristo Concrete Accessories, Inc. (Case No. 10-
12455), Form-Co, Inc. (Case No. 10-12456), and Universal Form
Clamp, Inc. (Case No. 10-12457), filed separate Chapter 11
petitions on August 4, 2010. Accubrace estimated its assets at
$500,001 to $1 million and debts at $10 million to $50 million.
The Debtors intend to sell substantially all of their assets to
UBP Acquisition Corp., an entity formed by certain funds managed
by Oaktree Capital Management, L.P. and Solus Alternative Asset
Management LP. The sale is subject to higher and better offers.
US ENERGY: Plan Confirmation Hearing Scheduled for October 5
------------------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of New York
will consider on October 5, 2010 at 10:00 a.m. (prevailing Eastern
Time), the confirmation of U.S. Energy Systems Inc., et al.'s
Chapter 11 Plan, amended as of August 10. Objections, if any, are
due 5:00 p.m. on September 24.
Plan materials and ballots will be mailed on August 25. The
deadline for returning completed ballots is September 24, at
5:00 p.m.
According to the Disclosure Statement, the Plan provides for these
terms:
-- All allowed secured claims to be unimpaired, if and to the
extent that any the claims exist;
-- All unclassified claims will be paid in full;
-- Allowed priority non-tax claims will be paid in full;
-- holders of allowed general unsecured claims will 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) the other less favorable treatment as may be agreed
upon by the holder of the claim and the Plan Administrator;
and
-- All allowed interests in the Debtor will be cancelled.
A full-text copy of the Disclosure Statement, as amended, is
available for free at:
http://bankrupt.com/misc/USEnergy_AmendedDS.pdf
The Debtor is represented by:
Peter S. Partee, Esq.
Scott H. Bernstein, Esq.
HUNTON & WILLIAMS LLP
200 Park Avenue, 53rd Floor
New York, NY 10166
Michael G. Wilson (admitted pro hac vice)
HUNTON & WILLIAMS LLP
Riverfront Plaza, East Tower
951 East Byrd Street
Richmond, VA 23219
About U.S. Energy Systems, Inc.
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 $258,200,000 and total debts of $175,300,000.
VEBLEN EAST: Creditors Committee Tapped; Trustee Selects Counsel
-----------------------------------------------------------------
The U.S. Trustee for Region 12 filed a notice identifying the
members of the Official Committee of Unsecured Creditors appointed
in the bankruptcy case of Veblen East Dairy Limited Partnership,
netDockets Blog reports.
The members of the Creditors Committee are:
* Stockmen's Supply, Inc.,
* Farmer's Elevator, Inc., and
* Paul's Electric, Inc.
According to netDockets, the representative of Stockmen's Supply
has been appointed as the temporary chairperson of the Creditors
Committee, pending the Committee's selection of a permanent
chairperson.
Chapter 11 Trustee
The Chapter 11 trustee for Veblen East Dairy, Lee Ann Pierce,
sought to retain the law firm of Bradshaw, Fowler, Proctor &
Fairgrave, P.C. in the case, the report says. Ms. Pierce, the
report notes, sought authority to retain her own law firm, Fite &
Pierce Law Office, as general chapter 11 counsel in the case.
The report notes that the application identifies the Bradshaw,
Fowler firm's role as "special counsel," the application specifies
that the firm is to be retained under Bankruptcy Code section
327(a), not section 327(e). As such, the report relates, the
firm will generally be retained to assist the trustee with her
duties in the case and not for a specific special purpose.
Separately, the report says, a different chapter 11 trustee,
Forrest Allred, has sought to retain the same firm in connection
with the bankruptcy case of Veblen West Dairy LLP. Veblen West is
an affiliate of Veblen East but the bankruptcy cases are not being
jointly administered, the report notes.
The application recognizes that a conflict could arise between the
two representations, but states that the firm will rescue itself
should such a conflict arise, the report adds.
About Veblen East
Veblen, South Dakota-based Veblen East Dairy Limited Partnership
filed for Chapter 11 bankruptcy protection on July 2, 2010 (Bankr.
D.S.D. Case No. 10-10146). The Company estimated its assets and
debts at $50,000,001 to $100,000,000.
The Company's affiliate, Veblen West Dairy, LLP, filed a separate
Chapter 11 petition on April 7, 2010 (Case No. 10-10071).
VIEWCREST INVESTMENTS: Chapter 11 Reorganization Case Dismissed
---------------------------------------------------------------
The Hon. Elizabeth Perris of the U.S. Bankruptcy Court for the
District of Oregon dismissed the Chapter 11 case of Viewcrest
Investments, LLC.
Headquartered in Madras, Oregon Viewcrest Investments, LLC, filed
for Chapter 11 protection on March 18, 2010 (Bankr. D. Ore Case
No. 10-32146). Charles Thomas Boardman, Esq., who has an office
in Portland, Oregon, assisted the Debtor in its restructuring
effort. The Company estimated assets at $10,000,001 to
$50,000,000 and $500,001 to $1,000,000 in liabilities.
VIKING SYSTEMS: Incurs $450,850 Net Loss for June 30 Quarter
------------------------------------------------------------
Viking Systems Inc. incurred a $450,850 net loss for the three
months ended June 30, 2010, from a $386,533 net loss for the same
period in 2009. The Company posted a $746,300 net loss for the
six months ended June 30 2010, from a $677,054 net loss for the
same period a year ago.
Viking Systems reported revenues of $2,005,323 for three months
ended June 30, 2010, compared with $1,632,662 in the same period
in 2009. For six months ended June 30, 2009, revenues were
$3,920,396, from $3,153,890 during the same period in 209.
As of June 30, 2010, the Company had $3,889,734 in total assets,
$1,891,158 in total liabilities, all current, and a $1,998,576
stockholder's equity.
A full-text copy of the Company's quarterly report on Form 10-Q is
available at no charge at http://ResearchArchives.com/t/s?68f6/
About Viking Systems
Based in Westborough, Massachusetts, Viking Systems, Inc. (OTCBB:
VKNG.OB) -- http://www.vikingsystems.com/-- is a developer,
manufacturer and marketer of visualization solutions for complex
minimally invasive surgery. The Company partners with medical
device companies and healthcare facilities to provide surgeons
with proprietary visualization systems enabling minimally invasive
surgical procedures, which reduce patient trauma and recovery
time.
The report from Viking Systems, Inc.'s independent registered
public accounting firm, Squar, Milner, Peterson, Miranda &
Williamson, LLP, dated February 22, 2010, includes a going concern
explanatory paragraph which states that factors relating to the
Company's net losses and working capital concerns raise
substantial doubt the Company's ability to continue as a going
concern. Viking Systems said it will need to generate significant
additional revenue to achieve profitability and it may require
additional financing during 2010. "The going concern explanatory
paragraph in the independent auditor's report emphasizes the
uncertainty related to our business as well as the level of risk
associated with an investment in our common stock," Viking Systems
said.
VIKING SYSTEMS: Nets $1.5MM from Shares Sale to Dutchess
--------------------------------------------------------
Viking Systems, Inc., through July 31, 2010, has sold a total of
6,913,230 common shares through its previously announced financing
facility with Dutchess Opportunity Fund, II, LP, for total year-
to-date proceeds of $1,517,355 representing an average per share
price of $0.22.
Robert Mathews, Executive Vice President and CFO of Viking
Systems, Inc. said, "We are very pleased with our financing
facility with Dutchess. To date we have been able to bring in
substantial capital for the execution of our strategic plan, while
continuing to explore alternative sources of funding."
About Viking Systems
Based in Westborough, Massachusetts, Viking Systems, Inc. (OTCBB:
VKNG.OB) -- http://www.vikingsystems.com/-- is a developer,
manufacturer and marketer of visualization solutions for complex
minimally invasive surgery. The Company partners with medical
device companies and healthcare facilities to provide surgeons
with proprietary visualization systems enabling minimally invasive
surgical procedures, which reduce patient trauma and recovery
time.
The report from Viking Systems, Inc.'s independent registered
public accounting firm, Squar, Milner, Peterson, Miranda &
Williamson, LLP, dated February 22, 2010, includes a going concern
explanatory paragraph which states that factors relating to the
Company's net losses and working capital concerns raise
substantial doubt the Company's ability to continue as a going
concern. Viking Systems said it will need to generate significant
additional revenue to achieve profitability and it may require
additional financing during 2010. "The going concern explanatory
paragraph in the independent auditor's report emphasizes the
uncertainty related to our business as well as the level of risk
associated with an investment in our common stock," Viking Systems
said.
VISTEON CORP: Reaches Settlement With Term Loan Lenders
-------------------------------------------------------
Visteon Corporation signed a letter agreement with the four
financial institutions comprising a steering committee of the
company's term loan lenders and the agent for the company's term
loan facility, in which the steering committee and the agent
affirmed their support of the Company's Fourth Amended Plan of
Reorganization.
The support, which Visteon will receive pursuant to the letter
agreement, takes various forms, the Company noted in a July 28,
2010 public statement. First, holders of a majority of the
$1.5 billion term loan (i.e., approximately 55 percent of the
outstanding amount), including members of the steering committee
as well as several other large term loan lenders, agreed to vote
in favor of the plan. In addition, the steering committee has
agreed to formally recommend to the remaining term loan lenders
that they vote in favor of the plan. The term loan agent,
Wilmington Trust, also agreed, at the direction of a majority of
the term loan lenders (which the term loan agent will have as a
result of this letter agreement), to cease all litigation efforts
it is undertaking in connection with confirmation of the plan
(including all of its discovery efforts) if the term lender class
accepts the plan and to withdraw with prejudice its currently
pending appeal of Visteon's equity commitment agreement and
bondholder plan support agreement. Finally, the term loan agent
agreed to provide affirmative support of the plan throughout the
Chapter 11 case including at the confirmation hearing if the term
lender class accepts the plan.
As part of the letter agreement, Visteon acknowledged that the
plan will provide the term lenders with postpetition interest at
the default rate and will support the compensation for
professional fees and expenses. Additionally, consistent with
the plan, Visteon has acknowledged that if the term lender class
votes in favor of the plan, Visteon will not seek reinstatement
of the term loan.
The letter agreement will ensure that a significant portion of
Visteon's outstanding prepetition secured debt will vote in favor
of and affirmatively support Visteon's plan. As the company
moves toward the deadline for voting on its plan of
reorganization, the support Visteon has now received from its
secured lenders, along with the previously committed support of
Visteon's bondholders pursuant to their own plan support
agreement, and the official committee of unsecured creditors'
explicit endorsement of the plan, represents another positive
step in Visteon's plan confirmation process, the Company noted in
its public statement.
About Visteon Corp
Headquartered in Van Buren Township, Michigan, Visteon Corporation
(NYSE: VC) -- http://www.visteon.com/-- is an automotive supplier
that designs, engineers and manufactures innovative climate,
interior, electronic and lighting products for automakers. 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
disclosed 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
effort. Laura Davis Jones, Esq., James E. O'Neill, Esq., Timothy
P. Cairns, Esq., and Mark M. Billion, Esq., at Pachulski Stang
Ziehl & Jones LLP, in Wilmington, Delaware, serve as the Debtors'
local counsel. The Debtors' investment banker and financial
advisor is Rothschild Inc. The Debtors' notice, claims, and
solicitation agent is Kurtzman Carson Consultants LLC. The
Debtors' restructuring advisor is Alvarez & Marsal North America,
LLC.
Bankruptcy Creditors' Service, Inc., publishes Visteon Bankruptcy
News. The newsletter tracks the Chapter 11 proceedings of Visteon
Corp. and its debtor-affiliates. (http://bankrupt.com/newsstand/
or 215/945-7000).
VISTEON CORP: Ready for Plan Confirmation Hearing on August 31
--------------------------------------------------------------
Visteon Corporation and its debtor affiliates delivered to the
U.S. Bankruptcy Court for the District of Delaware a status
report on their Fourth Amended Plan of Reorganization on
August 13, 2010.
Visteon tells Judge Sontchi that it is ready to commence a
"largely consensual" confirmation hearing on August 31, with a
majority of each class of claims and interests having voted to
accept its Plan.
The previously reserved August 25 confirmation hearing date for
the Plan to the extent each class of unsecured claims and
interests votes to accept the Plan has been adjourned by the
Court to August 31, at 9:30 a.m.
In addition to the voting returns, Visteon's unsecured note
holders have delivered checks for more than $1.06 billion, thus
exceeding the $950 million equity rights offering upon which the
Toggle A SubPlan of the Visteon Plan is premised, James E.
O'Neill, Esq., at Pachulski Stang Ziehl & Jones LLP, in
Wilmington, Delaware, related under the August Status Report.
The note holders, who are parties to the Court-approved equity
commitment agreement, are also in position to timely deliver
commitments for an additional $300 million of junior capital
pursuant to the direct purchase commitment under ECA, Mr. O'Neill
reveals.
The Plan and the junior capital infusion, Mr. O'Neill asserts,
will allow Visteon to significantly deleverage its prepetition
capital structure and right size its going forward balance sheet,
poising it to attract and retain customers as a reorganized
entity.
Visteon also reports to the Court that two of the most active
protagonists in its bankruptcy proceedings -- the term lenders
and the ad hoc equity committee -- each of which was preparing
for a pitched confirmation battle on the complex issues of
reinstatement and valuation have now laid down their arms and are
affirmatively supporting the Plan.
Mr. O'Neill specifies that the steering committee and
administrative agent representing the term lenders agreed, among
other things to:
-- actively support the Plan;
-- recommend to other term lenders that they support the Plan;
and
-- withdraw their pending appeal of the ECA and confirmation
discovery based on the Debtors' acknowledgment that they
would not pursue reinstatement of the term loan and the
Debtors' agreement to pay certain fees, expenses, and
postpetition interest to the term lenders under the Plan.
Unsurprisingly, all but one term lender has voted in favor of the
Plan, according to Mr. O'Neill.
As to the Ad Hoc Equity Committee, it agreed, among other things
to:
-- support the Plan;
-- withdraw their pending appeal of the ECA; and
-- suspend all confirmation discovery upon agreement of the
investors backstopping the rights offering to allow the
Ad Hoc Equity Committee's members to participate in a
portion of the $300 million direct purchase commitment
under the ECA and the payment of up to $4.25 million for
actual, documented professional fees and out-of-pocket
expenses of the AHEC and their advisors in the AHEC
members' capacity as additional investors under the ECA.
As the confirmation hearing approaches, Visteon also relates that
it is close to finalizing an exit financing facility. The
Company notes that after circulating a proposed exit financing
structure and term sheet to potential lenders, it received exit
facility proposals from various lender groups in early August.
The Company is presently negotiating with those lender groups to
select the most attractive proposal. The Company expects to be
in a position to finalize a commitment letter for the exit
financing facility within the next several days.
Visteon is presently in talks with at least three lender groups
for the possible extension of about $700 million in exit
financing, Reuters revealed in an August 11 report, citing
sources familiar with the matter.
Reuters' sources identified the competing lender groups as being
led by Morgan Stanley; Barclays Capital; and the trio of Goldman
Sachs, Deutsche Bank, and Wells Fargo.
Reuters' sources added that the exit financing is contemplated to
comprise of a $200 million asset-backed loan and $500 million
term loan.
Given these developments, Visteon believes the confirmation
hearing should be relatively truncated -- without the need for
the Court to engage in extensive evidentiary findings regarding
issues like valuation.
Visteon nevertheless acknowledge that a number of parties filed
plan confirmation objections, some of which are not resolved at
the present time. The Company, however, believes that many of
the objections, particularly those that focus on individual
creditor issues pertaining to contract assumption issues or
treatment of priority tax claims, involve language issues likely
to be resolved prior to the confirmation hearing.
The Company also notes that certain objections raise valuation
issues, including one filed by Fulcrum Credit Partners, LLP, the
only remaining member of the now disbanded ad hoc trade
committee, that specifically argued that the Bankruptcy Code's
cram-down rules -- particularly the absolute priority rule --
apply irrespective of the Plan voting results. Fulcrum also
joined in the IUE-CWA's attempt to swing the general unsecured
class vote by securing the temporary allowance of a $100 million
claim, Visteon notes.
Visteon avers that it filed the Status Report to (i) confirm the
August 31, 2010 date for commencement of the confirmation
hearing; (ii) lay out its position on some confirmation issues;
and (iii) seek vital guidance from the Court regarding the
appropriate parameters for a confirmation hearing for which all
classes of claims and interests have accepted the Plan.
Plan Voting Results
Visteon further reports that its Plan has been overwhelmingly
carried by each class of claims and interests entitled to vote
under the Plan. The Company summarized the results in these
tables:
Visteon Corp. and affiliates
Consolidated Voting Results
----------------------------
Number of Accepting Accepting
Claims Percentage Amount of Percentage
Class Voting in Number Voting Claims in Amount
----- ------ ---------- ------------- -----------
E 145 99.31% $1,450,237,379 98.62%
F 290 95.52% $574,802,726 98.31%
G 44 100.00% $168,784,000 100.00%
H 634 84.54% $389,804,103 92.17%
J n/a n/a 60,585,110.3195 76.16%
(shares)
Visteon Corporation Voting Results
----------------------------------
Number of Accepting Accepting
Claims Percentage Amount of Percentage
Class Voting in Number Voting Claims in Amount
----- ------ ---------- ------------- -----------
E 145 99.31% $1,450,237,379 98.62%
F 290 95.52% $574,802,726 98.31%
G 44 100.00% $168,784,000 100.00%
H 468 85.68% $311,986,759 90.84%
J n/a n/a 60,585,110.3195 76.16%
(shares)
The deadline for the submission of the ballots on the Visteon
Plan was July 30, 2010. In accordance with the Court-approved
solicitation procedures, the Voting Deadline was extended for the
Ad Hoc Equity Committee to allow for further negotiations to pave
the way for a plan with the full consent of each voting class.
The Industrial Division of the Communications Workers of America,
AFL-CIO, CLC, on the July 30 Voting Deadline, filed a motion for
temporary allowance of a $100 million claim against two Visteon
debtor affiliates for voting purposes. Visteon believes that the
IUE-CWA cannot establish that it has a general unsecured claim
entitled to vote on the Plan.
Mr. O'Neill adds that after Visteon publicly announced in a press
release in late July that the Plan was accepted by all classes of
claims and interests, Fulcrum joined the IUE-CWA's motion.
Fulcrum is a claims buyer holding approximately $9.8 million in
claims or approximately 3.1% of Class H claims that voted on the
Plan. In its joinder, Fulcrum alleged that Visteon engaged in
selective vote counting. Visteon asserts that Fulcrum is wrong.
The Company maintains that in soliciting and counting votes on
the Plan, it has strictly complied with the provisions of the
Solicitation Procedures. It also avers that it has made
available to Fulcrum the full balloting report for Class H
claims, even though not finalized, and PDF copies of each
Class H ballot. Visteon maintains that it will defend the
integrity of the balloting report and the balloting process at
the confirmation hearing if challenged.
About Visteon Corp
Headquartered in Van Buren Township, Michigan, Visteon Corporation
(NYSE: VC) -- http://www.visteon.com/-- is an automotive supplier
that designs, engineers and manufactures innovative climate,
interior, electronic and lighting products for automakers. 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
disclosed 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
effort. Laura Davis Jones, Esq., James E. O'Neill, Esq., Timothy
P. Cairns, Esq., and Mark M. Billion, Esq., at Pachulski Stang
Ziehl & Jones LLP, in Wilmington, Delaware, serve as the Debtors'
local counsel. The Debtors' investment banker and financial
advisor is Rothschild Inc. The Debtors' notice, claims, and
solicitation agent is Kurtzman Carson Consultants LLC. The
Debtors' restructuring advisor is Alvarez & Marsal North America,
LLC.
Bankruptcy Creditors' Service, Inc., publishes Visteon Bankruptcy
News. The newsletter tracks the Chapter 11 proceedings of Visteon
Corp. and its debtor-affiliates. (http://bankrupt.com/newsstand/
or 215/945-7000).
VISTEON CORP: Receives Plan Objections From Various Parties
-----------------------------------------------------------
Various parties submitted objections to confirmation of the
reorganization plan of Visteon Corp.
Roberta A. DeAngelis, the U.S. Trustee for Region 3, contends
that the Plan, as amended four times, is not confirmable because:
(i) it treats creditors in certain classes differently
depending on how they vote in violation of Section
1123(a)(4) of the Bankruptcy Code; and
(ii) it improperly deems certain claims to be disallowed.
The U.S. Trustee points out that certain provisions of the Plan
improperly deem certain claims to be disallowed or adjusted or
expunged by the Debtors and the Claims' Agent without the
requirement that an objection first be filed seeking to disallow
or adjust those claims in violation of Section 502(c) of the
Bankruptcy Code.
The United States, on behalf of the Internal Revenue Service, the
U.S. Customs and Border Protection, and the Department of Health
and Human Services oppose confirmation of the Debtors' Plan.
Ellen W. Slights, assistant U.S. Attorney, relates that the IRS
and Customs object to the Plan to the extent it fails to provide
for (i) the commencement of payments to the IRS and Customs on
the Plan Effective Date; (ii) an adequate rate of interest on the
IRS and Customs priority tax claims; and (iii) at least quarterly
payments of those priority claims.
Employee unions, namely (i) the IUE-CWA, the Industrial Division
of the Communications Workers of America, AFL-CIO, CLC, and (ii)
the International Union, United Automobile, Aerospace and
Agricultural Implement Workers of America, oppose confirmation of
the Debtors' Plan to the extent the Plan would permit the Debtors
to terminate health and life insurance benefits to the Unions'
retirees.
An ad hoc committee of trade claimants, consisting of certain
holders of general unsecured claims, opposes confirmation of the
Debtors' Plan as it disparately treats claims under Classes F and
H of the Plan. The Ad Hoc Trade Committee complains that the
separate classification and disparate treatment of Class F and
Class H claims is improper.
An ad hoc committee of retiree participants of the Debtors'
Supplemental Executive Retirement Plan/Pension Parity Plan filed
a letter with the Court, expressing their disagreement of the
treatment of SERP/PPP-related claims under the Debtors' Plan of
Reorganization. The Ad Hoc SERP/PPP Committee objects to the
proposal of a $0 payout to SERP retiree benefit claimants, while
reinstating 100% of the benefits to employees who remain on the
payroll at the Debtors' emergence from bankruptcy.
Robert Dudon, Michael Jarema, III, Miriam Rosario, William
Shillingford, Julio Soto, Dean Turner, Ronald Young and Thomas
Zurek and all similarly situated salaried retirees object to
confirmation of Debtors' Revised Fourth Amended Joint Plan Of
Reorganization because it allows the Debtors to terminate health
and life insurance benefits.
Andrew Shirley, as a beneficial holder of approximately 700,000
shares of common stock of Visteon Corporation, asks the Court to
deny confirmation of the Plan. He asserts that the Plan in its
present form does not meet the "fair and equitable" standard of
Section 1129(b) of the Bankruptcy Code. According to Mr. Shirley,
this failure is largely attributable to absurdly low valuation
estimates contained in the Disclosure Statement, which forms the
foundation of the Plan and its proposed distribution scheme. The
Valuation estimates an enterprise value range of $1.890 billion to
$1.990 billion and a value of interests in
unconsolidated joint ventures of $195 million.
Several parties to contracts also filed objections. Nissan North
America, Inc., and International Business Machines Corp. are among
those objectors.
Visteon's Response
James E. O'Neill, Esq., at Pachulski Stang Ziehl & Jones LLP, in
Wilmington, Delaware, on behalf of Visteon, acknowledges that
while the Visteon Plan is fully consensual on a class basis, the
Company received 18 individual plan confirmation objections.
Visteon believes that the vast majority of those objections will
not require any evidence to the extent they remain contested at
the time of the confirmation hearing. The Company is also
hopeful that the objections can be resolved consensually through
the addition of language to the Plan or confirmation order.
Among others, Fulcrum and Andrew Shirley contest the valuation of
Visteon's enterprise. The Company says it does not anticipate
presenting a full valuation argument at the confirmation hearing,
notwithstanding Fulcrum's insistence otherwise.
Instead, Visteon asserts that clarity is appropriate and indeed
required as to the scope of the triable issues at the
confirmation hearing.
Mr. Shirley, an individual shareholder, also argued that the Plan
fails the best interests test under Section 1129(a)(7) of the
Bankruptcy Code. Visteon relates that it will be prepared to
present an evidentiary record on this issue to the extent Mr.
Shirley insists on pressing the issue at the confirmation
hearing. Visteon is certain that a contest on the best interests
test can be fully tried within the time reserved by the Court at
the end of August.
The objections filed against the Plan based on the treatment of
OPEB and retiree benefits do not involve evidentiary issues at
all, but rather, relatively simple questions as to Visteon's
fulfillment of OPEB obligations in light of the Third Circuit's
recent ruling that a debtor cannot terminate OPEB -- even if the
benefits are unvested -- without engaging in a Section 1114
process, Mr. O'Neill relates. The Company reiterates that it is
in the process of ensuring compliance with the Third Circuit's
ruling by having initiated the intricate process of reinstating
OPEB for the IUE-CWA retirees that appealed to the Third Circuit
and will honor any administrative claims allowed by the Court for
the postpetition period during which OPEB was terminated.
Visteon does not believe that any of the other objections filed
will require an evidentiary hearing or present an obstacle to
confirmation and Plan to proceed at the confirmation hearing as
set forth in its Status Report.
A table outlining the asserted Plan Objections is available for
free at http://bankrupt.com/misc/Visteon_PlanObjSummary.pdf
About Visteon Corp
Headquartered in Van Buren Township, Michigan, Visteon Corporation
(NYSE: VC) -- http://www.visteon.com/-- is an automotive supplier
that designs, engineers and manufactures innovative climate,
interior, electronic and lighting products for automakers. 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
disclosed 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
effort. Laura Davis Jones, Esq., James E. O'Neill, Esq., Timothy
P. Cairns, Esq., and Mark M. Billion, Esq., at Pachulski Stang
Ziehl & Jones LLP, in Wilmington, Delaware, serve as the Debtors'
local counsel. The Debtors' investment banker and financial
advisor is Rothschild Inc. The Debtors' notice, claims, and
solicitation agent is Kurtzman Carson Consultants LLC. The
Debtors' restructuring advisor is Alvarez & Marsal North America,
LLC.
Bankruptcy Creditors' Service, Inc., publishes Visteon Bankruptcy
News. The newsletter tracks the Chapter 11 proceedings of Visteon
Corp. and its debtor-affiliates. (http://bankrupt.com/newsstand/
or 215/945-7000).
VISTEON CORP: Reports $201 Million Net Loss in Second Quarter
-------------------------------------------------------------
Visteon Corporation reported a net loss of $201 million, or $1.55
per share, on product sales of $1.89 billion for second quarter
2010. The net loss includes a $122 million charge for certain
postpetition interest expenses and a net $75 million charge
related to changes in benefits under certain U.S. other post-
retirement employee benefit ("OPEB") plans. For the second
quarter of 2009, Visteon reported a net loss of $112 million, or
87 cents per share, on product sales of $1.48 billion.
Adjusted EBITDA was $166 million for the second quarter of 2010,
an improvement of $93 million compared with the second quarter of
2009.
"The increase in global vehicle production volumes combined with
our on-going actions to improve our operations and our cost
structure continues to drive year-over-year financial
improvement," said Donald J. Stebbins, chairman and chief
executive officer. "While we don't expect global vehicle
production in the second-half of this year to approach first-half
levels, our lean and globally balanced engineering and
manufacturing footprint provides a competitive advantage in
growing with our customers around the world."
Approximately 30 percent of Visteon's second-quarter product sales
were to Hyundai-Kia and 27 percent to Ford Motor Co., with PSA
Peugeot-Citroen and Renault-Nissan accounting for about
7 and 6 percent, respectively. On a regional basis, Asia
accounted for 39 percent of total product sales -- up from
35 percent a year earlier -- with Europe representing 36 percent,
North America 18 percent and South America 7 percent.
Plan of Reorganization Update and Preliminary
Voting Results; Initial Subscription Results
After obtaining the bankruptcy court's approval of its fourth
amended disclosure statement on June 28, 2010, the company
commenced the process of soliciting votes on its fourth amended
joint plan of reorganization from eligible stakeholders. The
voting deadline has now passed and preliminary voting results
indicate that the Plan is fully consensual on a class basis as
all creditor and equity classes have voted to accept the Plan.
Additionally, the company, the investors under the equity
commitment agreement, and the Ad Hoc Equity Committee ("AHEC")
reached an agreement under which the AHEC would support and vote
in favor of the Plan, without any modifications to the Plan, and
withdraw its legal challenges to the Plan and supporting
agreements in exchange for the right to participate in the direct
purchase commitment under the equity commitment agreement for
144,456 shares and the payment on the date of Visteon's exit from
bankruptcy of up to $4.25 million of certain costs and expenses
of the members of the AHEC and their respective advisors.
Also, the subscription deadline for Visteon's $950 million rights
offering to eligible holders of its unsecured senior notes has now
passed and preliminary results indicate that the rights offering
has been oversubscribed.
The bankruptcy court previously reserved Aug. 31, 2010, to
commence a hearing to confirm the Plan to the extent that each
class of claims and interests has voted to accept the Plan
pursuant to Section 1126 of the Bankruptcy Code. Based on the
preliminary voting results, Visteon will seek to go forward with
the confirmation hearing on that date. Donald J. Stebbins,
chairman and chief executive officer commented on the results
stating, "We are extremely pleased to have our plan supported by
all classes. This marks an important milestone in Visteon's
successful emergence from our Chapter 11 process."
Second Quarter 2010 Results
For the second quarter of 2010, total sales were approximately
$1.95 billion, including product sales of $1.89 billion and
services revenue of $56 million. Product sales increased by
$407 million, or 27 percent, year-over-year as higher production
and new business wins, net of plant divestitures and closures,
increased sales by about $327 million. Foreign currency further
increased sales by about $64 million. The company experienced
higher sales in each of the major regions in which it operates,
reflecting increased production volumes by all customers as
vehicle sales rebounded in response to stronger global economic
conditions.
Gross margin for the second quarter was $104 million, compared
with $80 million a year earlier. This increase reflected the
impact of higher customer production levels and net cost
performance partially offset by foreign currency. Second quarter
gross margin was also unfavorably impacted by a net $75 million
charge related to changes in benefits under certain U.S. OPEB
plans.
Selling, general and administrative expense for the second quarter
totaled $88 million, a decrease of $9 million compared with the
same period a year earlier, reflecting continued focus on cost
competitiveness.
As previously announced, on July 28, 2010, the company entered
into an agreement with a steering committee of the company's
secured term loan lenders and the agent for the company's term
loan facility, whereby the steering committee and the agent
affirmed their support of the Plan and the company acknowledged
that the Plan will provide term lenders with post-petition
interest at the default rate as set forth in the term loan credit
agreement. The term lender class has voted to accept the Plan.
As a result of this agreement, the company recognized $122 million
of post-petition interest expense in the second quarter.
For the second quarter, the company reported a net loss of
$201 million, or $1.55 per share. This compares with a net loss
of $112 million, or 87 cents per share, in the same period a year
ago. During the second quarter, Visteon won approximately
$284 million of future business, with more than half generated in
Asia.
First Half 2010
For the first half of 2010, total sales of $3.85 billion were
higher by $928 million, or 32 percent, compared with the same
period a year earlier. For the first half of 2010, Visteon
reported net income of $32 million, or 25 cents per share,
compared with a net loss of $110 million, or 85 cents per share,
during the first half of 2009. Adjusted EBITDA for the first
half of 2010 was $327 million, compared with $95 million reported
in the first half of 2009.
Cash Flow and Liquidity
For the second quarter of 2010, Visteon generated $133 million in
cash from operating activities, compared with $40 million for the
second quarter of 2009. The improvement was largely attributable
to higher net income, lower trade working capital outflow and the
impact of the automatic stay on interest payments arising from
Visteon's Chapter 11 filing. Capital expenditures in the second
quarter were $41 million, compared with $33 million in the same
period a year earlier. Free cash flow was $92 million in the
second quarter, compared with $7 million in the second quarter of
2009.
As of June 30, 2010, Visteon had global cash balances, including
restricted cash, of nearly $1.2 billion.
A full-text copy of Visteon's 2nd Quarter 2010 Financial Results
is available for free at the U.S. Securities and Exchange
Commission at http://ResearchArchives.com/t/s?6846
Visteon Corporation and Subsidiaries
Consolidated Balance Sheet
As of June 30, 2010
ASSETS
Current Assets:
Cash and cash equivalents $979,000,000
Restricted cash 181,000,000
Accounts receivable, net 1,032,000,000
Inventories, net 351,000,000
Other current assets 285,000,000
--------------
Total current assets 2,828,000,000
Property and equipment, net 1,721,000,000
Equity in net asset of non-consolidated units 357,000,000
Other non-current assets 68,000,000
--------------
Total Assets $4,974,000,000
==============
LIABILITIES & SHAREHOLDERS' DEFICIT
Short-term debt, including current portion
of long-term debt $207,000,000
Accounts payable 997,000,000
Accrued employee liabilities 189,000,000
Other current liabilities 327,000,000
--------------
Total current liabilities 1,720,000,000
Long-term debt 11,000,000
Employee benefits 509,000,000
Deferred income taxes 173,000,000
Other non-current liabilities 237,000,000
Liabilities subject to compromise 3,094,000,000
Shareholders' deficit
Preferred stock 0
Common stock 131,000,000
Stock warrants 127,000,000
Additional paid-in capital 3,408,000,000
Accumulated deficit (4,544,000,000)
Accumulated other comprehensive(loss) income (215,000,000)
Other (4,000,000)
--------------
Total Visteon shareholders' deficit (1,097,000,000)
Non-controlling interests 327,000,000
--------------
Total shareholders' deficit (770,000,000)
--------------
Total Liabilities and shareholders' deficit $4,974,000,000
==============
Visteon Corporation and Subsidiaries
Consolidated Statement of Operations
For Three Months Ended June 30, 2010
Net sales
Products $1,889,000,000
Services 56,000,000
--------------
1,945,000,000
Cost of Sales
Products 1,785,000,000
Services 56,000,000
--------------
1,841,000,000
--------------
Gross margin 104,000,000
Selling, general and administrative expenses 88,000,000
Reorganization expenses, net 39,000,000
Restructuring expenses 9,000,000
Reimbursement from escrow account 0
Deconsolidation gain 0
Asset impairments and loss on divestitures 4,000,000
--------------
Operating (loss) income (36,000,000)
Interest expense 129,000,000
Interest income 3,000,000
Equity in net income of non-consolidated affiliates 35,000,000
--------------
(Loss) income before income taxes (127,000,000)
Provision for income taxes 50,000,000
--------------
Net (loss) income (177,000,000)
Net income attributable to
non-controlling interest 24,000,000
--------------
Net (loss) income attributable to Visteon ($201,000,000)
==============
Visteon Corporation and Subsidiaries
Combined Statement of Cash Flows
For Six Months Ended June 30, 2010
Operating Activities
Net income(loss) $71,000,000
Adjustments to reconcile net income to
net cash provided by operating activities:
Depreciation and amortization 140,000,000
OPEB and pension amortization and curtailment (315,000,000)
OPEB reinstatement 150,000,000
Reorganization expenses, net 69,000,000
Equity in net income of non-consolidated
affiliates, net of dividends remitted (62,000,000)
Asset impairments and loss on divestitures 25,000,000
Deconsolidation gain 0
Other non-cash items 14,000,000
Changes in assets and liabilities:
Accounts receivable (106,000,000)
Inventories (50,000,000)
Accounts payable 54,000,000
Other assets and liabilities 183,000,000
--------------
Net cash provided from operating activities 173,000,000
Investing Activities
Capital expenditures (66,000,000)
Other, including proceeds from asset sales 23,000,000
--------------
Net cash used by investing activities (43,000,000)
Financing Activities
Increase in restricted cash, net (48,000,000)
Short-term debt, net (5,000,000)
Principal payments on debt (12,000,000)
Proceeds from issuance of debt 8,000,000
Other, including overdrafts (18,000,000)
--------------
Net cash used by financing activities (75,000,000)
Effect of exchange rate changes on cash 38,000,000
--------------
Net increase (decrease) in
cash and cash equivalents 17,000,000
--------------
Cash and cash equivalents, at beginning of period 962,000,000
--------------
Cash and cash equivalents, at end of period $979,000,000
==============
About Visteon Corp
Headquartered in Van Buren Township, Michigan, Visteon Corporation
(NYSE: VC) -- http://www.visteon.com/-- is an automotive supplier
that designs, engineers and manufactures innovative climate,
interior, electronic and lighting products for automakers. 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
disclosed 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
effort. 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).
VITAFREZE FROZEN: Aims Chapter 11 Emergence Early Next Year
-----------------------------------------------------------
Kelly Johnson, staff writer at Sacramento Business Journal,
reports Vitafreze Frozen Confections Inc. along with Matterhorn
Group Inc. and Deluxe Ice Cream Co. hope to emerge from bankruptcy
early next year. The Company said it will continue to operate
from its plant in Sacramento as its restructures.
Formed in 2004, Vitafreze was designed to be a "vehicle to roll up
frozen novelty manufacturing companies in the Western U.S." The
company has plants in Sacramento and Salem, Oregon.
Vitafreze Frozen Confections Inc. filed for Chapter 11 on July 26,
in Sacramento, California (Bankr. E.D. Calif. Case No. 10-
39664). The Company estimated assets and debts of $10 million to
$50 million in its Chapter 11 petition. Two affiliates, Deluxe
Ice Cream Company (Bankr. E.D. Calif. Case No. 10-39670) and
Matterhorn Group, Inc., also filed for Chapter 11.
Vitafreze and two other affiliates owe $10.6 million to secured
lender Key Bank NA. The two primary equity holders are Pacific
Mezzanine Fund LP and CC&B Holdings Inc.
WATCH ME: Case Summary & 5 Largest Unsecured Creditors
------------------------------------------------------
Debtor: Watch Me Grow, Inc
dba Watch Me Grow Academy For Early Learning
100A Grossman Drive
Southern Pines, NC 28387
Bankruptcy Case No.: 10-06510
Chapter 11 Petition Date: August 13, 2010
Court: U.S. Bankruptcy Court
Eastern District of North Carolina (Wilson)
Judge: Stephani W. Humrickhouse
Debtor's Counsel: Danny Bradford, Esq.
PAUL D. BRADFORD, PLLC
dba Bradford Law Offices
6512 Six Forks Road, Suite 304
Raleigh, NC 27615
Tel: (919) 758-8879
Fax: (919) 803-0683
E-mail: dbradford@bradford-law.com
Scheduled Assets: $1,070,175
Scheduled Debts: $2,062,202
A list of the Company's five largest unsecured creditors
filed together with the petition is available for free
at http://bankrupt.com/misc/nceb10-06510.pdf
The petition was signed by Nancy A. Lewis, president.
WAVE SYSTEMS: Incurs $966,900 Net Loss for June 30 Quarter
----------------------------------------------------------
Wave System Corporation incurred a $966,874 net loss for the three
months ended June 30, 2010, from a 343,752 net loss for the same
period in 2009. The Company posted a $1,731,050 net loss for the
six months ended June 30 2010, from a $1,866,984 net loss for the
same period a year ago.
Wave Systems recorded revenues of $6,448,674 and $4,797,640 for
the three months ended June 30, 2010 and 2009, respectively. The
increase in revenue was due primarily to an increase in licensing
revenues. Licensing revenues increased by $1,777,463 during the
three months ended June 30, 2010 as compared to the same period in
2009.
Wave Systems had revenues of $12,318,101 and $8,831,821 for the
six-months ended June 30, 2010 and 2009, respectively. The
increase in revenue was due primarily to an increase in licensing
revenues. Licensing revenues increased by $3,740,087 during the
six-months ended June 30, 2010 as compared to the same period in
2009.
As of June 30, 2010, the Company had $10,159,480 in total assets,
$7,271,349 in total liabilities, and a $2,888,131 stockholders'
equity. The Company had a stockholders' deficit of $1,859,955 at
Dec. 31, 2009.
Steven Sprague, President and CEO of Wave Systems commented,
"Wave's improved second quarter revenues reflected sequential and
year-over-year increases in both enterprise software sales
activity, as well as a higher volume of OEM software bundling with
PCs incorporating TPMs. The increase in bundling activity
reflected a rebound in PC shipments by our OEM partners.
"To support growing interest we are seeing in trusted computing
solutions, we have increased investments in sales and marketing
and in R&D, generally in line with our revenue performance. We
believe these investments are critical to the continued expansion
of our business and to address OEM partner and customer interest
in our products. Significant developments include Dell's plans to
significantly enhance the user interface for Wave's solutions in
next year's commercial PCs and Acer's decision to expand its
relationship with Wave beyond enterprise desktops to include
business notebook systems.
"We are also seeing continued adoption of our enterprise solutions
by customers in new markets, including a national online brokerage
services firm and a large integrated healthcare delivery system.
"We are also encouraged by our continued services work with the
U.S. government and are dedicating substantial resources to
support this project and are particularly encouraged by the
visibility they will be giving to trusted computing solutions at a
conference in September."
A full-text copy of the Company's earnings release is available at
no charge at http://researcharchives.com/t/s?693d
A full-text copy of the Company's quarterly report on Form 10-Q is
available at no charge at http://ResearchArchives.com/t/s?68f3/
About Wave Systems
Lee, Massachusetts-based Wave Systems Corp. (NASDAQ: WAVX) --
http://www.wave.com/-- develops, produces and markets products
for hardware-based digital security, including security
applications and services that are complementary to and work with
the specifications of the Trusted Computing Group, an industry
standards organization comprised of computer and device
manufacturers, software vendors and other computing products
manufacturers.
Wave's independent registered public accounting firm has issued a
report dated March 16, 2010, that includes an explanatory
paragraph referring to its significant operating losses and
substantial doubt about its ability to continue as a going
concern.
WECK CORP: Files for Chapter 11 in Manhattan
--------------------------------------------
The Weck Corp., doing business as Gracious Home, filed for
Chapter 11 on August 13 in Manhattan (Bankr. S.D.N.Y. Case No.
10-14349).
Gracious Home is a luxury home-goods retailer in New York.
The business started as a hardware store on New York's Upper East
Side neighborhood in 1963 and now has six locations. Gracious
Home sells bedding, bath and kitchen items, among other high-end
products. The Debtor estimated between $10 million and $50
million of both assets and liabilities in its bankruptcy petition.
The Company has bankruptcy financing from NewAlliance Bank,
according to Bloomberg News.
Mark T. Power, Esq., at Hahn & Hessen LLP -- MPower@HahnHessen.com
-- in New York, serves as counsel to the Debtor.
* Bankruptcy Filings Up 20% in the 12-Month Ended June 30
---------------------------------------------------------
Bankruptcy filings rose 20% in the 12-month period ending June 30,
2010, according to statistics released August 17 by the
Administrative Office of the U.S. Courts. A total of 1,572,597
bankruptcy cases were filed in federal courts in that period,
compared to 1,306,315 bankruptcy cases filed in the 12-month
period ending June 30, 2009. This is the highest number of
bankruptcy filings for any period since many of the provisions of
the Bankruptcy Abuse Prevention and Consumer Protection Act of
2005 took effect.
Business and Non-Business Filings
Non-business filings for the 12-month period ending June 30, 2010
totaled 1,512,989, up 21% compared to the 1,251,294 non-business
filings for June 30, 2009. Business filings totaled 59,608, up 8%
from the 55,021 filings reported in June 30, 2009.
Filings by Chapter, 12-month Period Ending June 30
In the 12-month period ending June 30, 2010 increased filings were
seen in all bankruptcy chapters.
* Chapter 7 filings totaled 1,133,320 up 25% from the 907,603
Chapter 7 filings in the 12-month period ending June 30,
2009.
* Chapter 13 filings totaled 424,242, up 10% from the 384,187
filings in the same time period in June 2009.
* Chapter 11 filings totaled 14,272, up 2% from the 13,951
filings during the 12-month period ending June 30, 2009.
* Chapter 12 filings rose 56% to 660 from the 422 Chapter 12
bankruptcies filed as of June 30, 2009.
The Judiciary's Third Quarter Filings
Third quarter filings, the 3-month period ended June 30, 2010,
totaled 422,061. Filings for the June quarter are the highest of
any quarter in fiscal year 2010 (October 1, 2009 -- September 30,
2010) and the highest for any April-June quarter since the 2005
third quarter filings. For fiscal year 2010, filings for the
first quarter (October 1, 2009 -- December 31, 2009) totaled
372,203 and second quarter filings (January 1, 2010 -- March 31,
2010) totaled 388,148.
A full-text copy of the report is available at no charge at:
http://ResearchArchives.com/t/s?693f
* Moody's Liquidity-Stress Index at 5.7% at End of July
-------------------------------------------------------
The recent rise in Moody's Liquidity-Stress Index (LSI), which
continued in July, does not suggest we've entered another
corporate credit crunch, and the index remains far below the peaks
of the mid-2007-to-early-2009 credit downturn, Moody's Investors
Service said in a new report.
The LSI -- which falls when speculative-grade liquidity improves,
and rises when it worsens -- reached 5.7% at the end of July, but
it remains well below the 8.4% average since 2002, when the
ratings agency first began assigning SGLs, the report said.
"The two-month-old reversal is partly explained by lingering
concerns about the U.S. economic recovery, which is contributing
to volatility in bond issuance," said John Puchalla, Moody's Vice
President-Senior Credit Officer. "But future economic conditions
and their effect on credit availability will dictate whether the
wall of maturities between now and 2014 will spark another rise in
defaults."
Though speculative-grade issuers are seeing some borrowing
pressures -- due to the tentative U.S. recovery, high unemployment
and concerns over sovereign debt in Europe -- Moody's LSI remains
a long way from the dismal conditions of late 2008 and early 2009,
the report said.
"The relatively modest rise to date in the LSI suggests
corporations are having reasonable success so far in tackling the
initial waves of maturities," Puchalla said.
Overall, there were nine SGL upgrades in July 2010, and eight
downgrades, including six companies that dropped to a bottom-
Moody's proprietary LSI index takes the total number of companies
rated SGL-4, the lowest liquidity rating on a scale of 1 to 4, and
divides it by the number of companies that have SGL ratings. The
greater the percentage of SGL-4-rated companies, the higher the
liquidity-stress index.
The report, "Rise in Liquidity-Stress Index is Mild So Far, But
Concerns Persist Over Strength of Economic Recovery," is available
on Moody's web site, www.moodys.com.
* 2010's Bank Closings Reach 110 as Another Illinois Bank Closed
----------------------------------------------------------------
Palos Bank and Trust Company, Palos Heights, Illinois, was closed
Friday by the Illinois Department of Financial and Professional
Regulation - Division of Banking, which appointed the Federal
Deposit Insurance Corporation as receiver. To protect the
depositors, the FDIC entered into a purchase and assumption
agreement with First Midwest Bank, Itasca, Illinois, to assume all
of the deposits of Palos Bank and Trust Company.
Palos Bank and Trust Company is the 110th FDIC-insured institution
to fail in the nation this year, and the fourteenth in Illinois.
In accordance with Federal law, allowed claims against failed
financial institutions will be paid, after administrative
expenses, in this order of priority:
1. Depositors
2. General Unsecured Creditors
3. Subordinated Debt
4. Stockholders
2010 Failed Banks List
The FDIC was appointed as receiver for the closed banks. To
protect the depositors, the FDIC entered into a purchase and
assumption agreement with various banks that agreed to assume the
deposits of most of the closed banks. The FDIC also entered into
loss-share transactions on assets bought by the banks.
For this year, the failed banks are:
Loss-Share
Transaction Party FDIC Cost
Assets of Bank That Assumed to Insurance
Closed Bank Deposits & Bought Fund
Closed Bank (millions) Certain Assets (millions)
----------- ---------- -------------- -----------
Palos Bank and Trust $493.4 First Midwest Bank $72.0
Ravenswood Bank $264.6 Northbrook Bank $68.1
LibertyBank $768.2 Home Federal Bank $115.3
The Cowlitz Bank $529.3 Heritage Bank $68.9
Coastal Community $372.9 Centennial Bank $94.5
Bayside Savings $66.1 Centennial Bank $16.2
NorthWest Bank $167.7 State Bank and Trust $39.8
Williamsburg First $139.3 First Citizens Bank $8.8
Thunder Bank, Sylvan $32.6 The Bennington State $4.5
Community Security $108.0 Roundbank, Waseca $18.6
Crescent Bank $1,010.0 Renasant Bank $242.4
Sterling Bank $407.9 IBERIABANK $45.5
Home Valley Bank $251.8 South Valley Bank $37.1
SouthwestUSA Bank $214.0 Plaza Bank, Irvine $74.1
Turnberry Bank $263.9 NAFH National $34.4
First National Bank $682.0 NAFH National $74.9
Mainstreet Savings $97.4 Commercial Bank $11.4
Woodlands Bank $376.2 Bank of the Ozarks $115.0
Metro Bank of Dade $442.3 NAFH National $67.6
Olde Cypress Community $168.7 CenterState Bank $31.5
USA Bank, Port Chester $193.3 New Century Bank $61.7
Bay National Bank $282.2 Bay Bank, FSB $17.4
Ideal Federal Savings $6.3 -- None -- $2.1
Home National Bank $644.5 RCB Bank, Claremore $78.7
First National $252.5 The Savannah Bank $68.9
High Desert $80.3 First American $20.9
Peninsula Bank $644.3 Premier American $194.8
Nevada Security Bank $480.3 Umpqua Bank $80.9
Washington First $520.9 East West Bank $158.4
TierOne Bank $2,800.0 Great Western Bank $297.8
Arcola Homestead $17.0 -- None -- $3.2
First National Bank $60.4 Jefferson Bank $12.6
Sun West Bank $360.7 City National Bank $96.7
Granite Community $102.9 Tri Counties Bank $17.3
Bank of Fla- Southeast $595.3 EverBank $71.4
Bank of Fla- Southwest $559.9 EverBank $91.3
Bank of Fla- Tampa Bay $245.2 EverBank $40.3
Pinehurst Bank $61.2 Coulee Bank $6.0
Southwest Community $96.6 Simmons First Nat'l $29.0
New Liberty Bank $109.1 Bank of Ann Arbor $25.0
Satilla Community Bank $135.7 Ameris Bank $31.3
Midwest Bank & Trust $3,170.0 Firstmerit Bank $216.4
1st Pacific Bank $335.8 City National Bank $87.7
Access Bank $32.0 PrinsBank, Prinsburg $5.5
Towne Bank of Ariz $120.2 Commerce Bank $41.8
The Bank of Bonifay $242.9 First Federal Bank $78.7
Frontier Bank $3,500.0 Union Bank, NA $1,370.0
BC National Banks $67.2 Community First $11.4
Champion Bank $187.3 BankLiberty $52.7
CF Bancorp $1,650.0 First Michigan Bank $615.3
Westernbank PR $11,940.0 Banco Popular de PR $3,310.0
R-G Premier Bank $5,920.0 Scotiabank de PR $1,230.0
Eurobank, SJ, PR $2,560.0 Oriental Bank & Trust $743.9
Lincoln Park Savings $199.9 Northbrook Bank $48.4
Peotone Bank $130.2 First Midwest $31.7
Wheatland Bank $437.2 Wheaton Bank $133.0
New Century Bank $485.6 MB Financial $125.3
Citizens Bank&Trust $77.3 Republic Bank $20.9
Broadway Bank $1,200.0 MB Financial $394.3
Amcore Bank $3,800.0 Harris $220.3
Lakeside Community $53.0 People's United $11.2
Innovative Bank $268.9 Center Bank $37.8
City Bank $1,130.0 Whidbey Island $323.4
Butler Bank $233.2 People's United $22.9
AmericanFirst Bank $90.5 TD Bank, N.A. $10.5
First Federal $393.3 TD Bank, N.A. $6.0
Riverside National $3,420.0 TD Bank, N.A. $491.8
Tamalpais Bank $628.9 Union Bank, N.A. $81.1
Beach First National $585.1 Bank of NC $130.3
McIntosh Commercial $362.9 CharterBank, West Point $123.3
Desert Hills Bank $496.6 New York Community Bank $106.7
Unity National Bank $292.2 Bank of the Ozarks $67.2
Key West Bank $88.0 Centennial Bank $23.1
State Bank of Aurora $28.2 Northern State Bank $4.2
First Lowndes Bank $137.2 First Citizens Bank $38.3
Bank of Hiawassee $377.8 Citizens South Bank $137.7
Appalachian Community $1,010.0 Community & Southern $419.3
Advanta Bank Corp. $1,600.0 - None - $635.6
Century Security $96.5 Bank of Upson $29.9
American National $70.3 National Bank and Trust $17.1
The Park Avenue Bank $520.1 Valley National Bank $50.7
Statewide Bank $243.2 Home Bank, Lafayette $38.1
Old Southern Bank $315.6 Centennial Bank $94.6
LibertyPointe Bank $209.7 Valley National $24.8
Sun American Bank $535.7 First-Citizens Bank $103.8
Waterfield Bank $155.6 {FDIC Created} $51.0
Centennial Bank $215.2 Zions Bank $96.3
Bank of Illinois $211.7 Heartland Bank $53.7
Rainier Pacific Bank $446.2 Umpqua Bank, Roseburg $95.2
Carson River Community $51.1 Heritage Bank of Nevada $7.9
George Washington $412.8 FirstMerit Bank $141.4
La Jolla Bank $3,600.0 OneWest Bank, FSB $882.3
The La Coste Nat'l $53.9 Community National $3.7
Marco Community Bank $119.6 Omaha Bank $38.1
1st American State $18.2 Community Development $3.1
First National Bank $832.6 Community & Southern $260.4
Florida Community $875.5 Premier American Bank $352.6
American Marine Bank $373.2 Columbia State Bank $58.9
Marshall Bank, N.A. $59.9 United Valley Bank $4.1
First Regional Bank $2,180.0 First-Citizens Bank $825.5
Comm. Bank & Trust $1,210.0 SCBT, N.A. $354.5
Charter Bank $1,200.0 Charter, Albuquerque $201.9
Evergreen Bank $488.5 Umpqua Bank, Roseburg $64.2
Columbia River Bank $1,100.0 Columbia State Bank $172.5
Bank of Leeton $20.1 Sunflower Bank $8.1
Premier American Bank $350.9 Bond Street subsidiary $85.0
Town Community $69.6 Bank First American $17.8
St. Stephen State $24.7 First State Bank $7.2
Barnes Banking $827.8 {DINB Created} $271.3
Horizon Bank $1,400.0 Washington Federal $539.1
In 2009, there were 140 failed banks, compared with just 25 for
2008.
A complete list of banks that failed since 2000 is available at:
http://www.fdic.gov/bank/individual/failed/banklist.html
775 Banks Now in FDIC's Problem List
The number of institutions on the Federal Deposit Insurance
Corp.'s "Problem List" rose to 775, up from 702 at the end of
2009. In addition, the total assets of "problem" institutions
increased during the quarter from $403 billion to $431 billion.
These levels are the highest since June 30, 1993, when the number
and assets of "problem" institutions totaled 793 and $467 billion,
respectively, but the increase in the number of problem banks was
the smallest in four quarters.
"Problem" institutions are those institutions with financial,
operational, or managerial weaknesses that threaten their
continued financial viability. They are rated by the FDIC or
Office of the Thrift Supervision as either a "4" or "5", based on
a scale of 1 to 5 in ascending order of supervisory concern.
The Problem List is not divulged to the public. No advance notice
is given to the public when a financial institution is closed.
The FDIC says that 41 institutions failed during the first
quarter. Chairman Bair noted that the vast majority of "problem"
institutions do not fail.
According to the FDIC, its Deposit Insurance Fund (DIF) balance
improved for the first time in two years. The DIF balance -- the
net worth of the fund -- increased slightly to negative $20.7
billion, from negative $20.9 billion (unaudited) on December 31,
2009. The fund balance reflects a $40.7 billion contingent loss
reserve that has been set aside to cover estimated losses. Just
as banks reserve for loan losses, the FDIC has to set aside
reserves for anticipated closings. Combining the fund balance
with this contingent loss reserve shows total DIF reserves of
$20 billion. Total insured deposits increased by 1.3%
($70.0 billion) during the first quarter.
The FDIC's liquid resources - cash and marketable securities -
remained strong. Liquid resources stood at $63 billion at the end
of the first quarter, a decline from $66 billion at year-end 2009.
To provide the funds needed to resolve failed institutions in 2010
and beyond without immediately reducing the industry's earnings
and capital, the FDIC Board approved a measure on November 12,
2009, that required most insured institutions to prepay
approximately three years' worth of deposit insurance premiums -
about $46 billion - at the end of 2009.
Problem Institutions Failed Institutions
-------------------- -------------------
Year Number Assets (Mil) Number Assets (Mil)
---- ------ ------------ ------ ------------
2009 702 $402,800 140 $169,700
2008 252 $159,405 25 $371,945
2007 76 $22,189 3 $2,615
2006 50 $8,265 0 $0
2005 52 $6,607 0 $0
2004 80 $28,250 4 $170
A copy of the FDIC's Quarterly Banking Profile for the quarter
ended March 31, 2010, is available for free at:
http://bankrupt.com/misc/FDIC_QBP_Q1_10.pdf
* Gov. Christie Has Plan to Rescue Atlantic City Casinos
--------------------------------------------------------
Carla Main at Bloomberg News reports that Chris Christie, New
Jersey's Republican governor, has a plan to reverse Atlantic
City's fortunes, plagued by bankruptcies this year and last, as
the its casinos face increasing competition from gambling in other
states. Mr. Christie proposed last month carving a state-
controlled tourism district around the casinos, to oversee
policing and boardwalk development. His plan includes a proposal
for rescuing the project called the Revel, which Morgan Stanley
began developing as the biggest casino resort in Atlantic City and
walked away from in April as a result of the credit crunch,
recession, competition from nearby states and record drops in
gambling revenue.
According to Bloomberg, six of New Jersey's 11 operating casinos
have been through bankruptcy or restructuring in the past year.
Betting revenue tumbled 25% from 2006 to 2009. Cash-strapped
gambling houses have postponed renovations, and new development
has stalled.
* Upcoming Meetings, Conferences and Seminars
---------------------------------------------
Sept. 14, 2010
AMERICAN BANKRUPTCY INSTITUTE
ABI/NYIC Golf and Tennis Fundraiser
Maplewood Golf Club, Maplewood, N.J.
Contact: 1-703-739-0800; http://www.abiworld.org/
Sept. 20, 2010 (tentative)
AMERICAN BANKRUPTCY INSTITUTE
Complex Financial Restructuring Program
Fordham Law School, New York, N.Y.
Contact: 1-703-739-0800; http://www.abiworld.org/
Sept. 22-23, 2010 (tentative)
AMERICAN BANKRUPTCY INSTITUTE
ABI/NYU Bankruptcy and Business Reorganization Workshop
New York University School of Law, New York, N.Y.
Contact: 1-703-739-0800; http://www.abiworld.org/
Sept. 23-25, 2010
AMERICAN BANKRUPTCY INSTITUTE
Southwest Bankruptcy Conference
Four Seasons Las Vegas, Las Vegas, Nev.
Contact: 1-703-739-0800; http://www.abiworld.org/
Oct. 1, 2010
AMERICAN BANKRUPTCY INSTITUTE
ABI/UMKC Midwestern Bankruptcy Institute
Kansas City Marriott Downtown, Kansas City, Kan.
Contact: 1-703-739-0800; http://www.abiworld.org/
Oct. 1, 2010
AMERICAN BANKRUPTCY INSTITUTE
ABI/GULC "Views from the Bench"
Georgetown University Law Center, Washington, D.C.
Contact: 1-703-739-0800; http://www.abiworld.org/
Oct. 6-8, 2010
TURNAROUND MANAGEMENT ASSOCIATION
TMA Annual Convention
JW Marriott Grande Lakes, Orlando, Florida
Contact: http://www.turnaround.org/
Oct. 11, 2010
AMERICAN BANKRUPTCY INSTITUTE
Chicago Consumer Bankruptcy Conference
Standard Club, Chicago, Ill.
Contact: 1-703-739-0800; http://www.abiworld.org/
Oct. 15, 2010
AMERICAN BANKRUPTCY INSTITUTE
NCBJ/ABI Educational Program
Hilton New Orleans Riverside, New Orleans, La.
Contact: 1-703-739-0800; http://www.abiworld.org/
Oct. 28, 2010
AMERICAN BANKRUPTCY INSTITUTE
Mid-Level Professional Development Program
Weil, Gotshal & Manges LLP, New York, N.Y.
Contact: 1-703-739-0800; http://www.abiworld.org/
Oct. 29, 2010 (tentative)
AMERICAN BANKRUPTCY INSTITUTE
International Insolvency Symposium
The Savoy, London, England
Contact: 1-703-739-0800; http://www.abiworld.org/
Nov. __, 2010
AMERICAN BANKRUPTCY INSTITUTE
Delaware Views from the Bench and Bankruptcy Bar
Hotel du Pont, Wilmington, Del.
Contact: 1-703-739-0800; http://www.abiworld.org/
Nov. 11, 2010
AMERICAN BANKRUPTCY INSTITUTE
Detroit Consumer Bankruptcy Conference
Hyatt Regency Dearborn, Dearborn, Mich.
Contact: 1-703-739-0800; http://www.abiworld.org/
Nov. 29, 2010
RENAISSANCE AMERICAN MANAGEMENT, INC. & BEARD GROUP, INC.
17th Annual Distressed Investing Conference
The Helmsley Park Lane Hotel, New York City
Contact: 1-903-595-3800;
http://www.renaissanceamerican.com/
Dec. 9-11, 2010
AMERICAN BANKRUPTCY INSTITUTE
Winter Leadership Conference
Camelback Inn, a JW Marriott Resort & Spa,
Scottsdale, Ariz.
Contact: 1-703-739-0800; http://www.abiworld.org/
Dec. 2-4, 2010
AMERICAN BANKRUPTCY INSTITUTE
22nd Annual Winter Leadership Conference
Camelback Inn, Scottsdale, Arizona
Contact: 1-703-739-0800; http://www.abiworld.org/
January 26-28, 2011
TURNAROUND MANAGEMENT ASSOCIATION
TMA Distressed Investing Conference
Aria Las Vegas
Contact: http://www.turnaround.org/
Jan. 27-28, 2011
AMERICAN BANKRUPTCY INSTITUTE
Rocky Mountain Bankruptcy Conference
Westin Tabor Center, Denver, Colo.
Contact: 1-703-739-0800; http://www.abiworld.org/
Feb. 3-5, 2011
AMERICAN BANKRUPTCY INSTITUTE
Caribbean Insolvency Symposium
Westin Casuarina Resort & Spa, Grand Cayman Island
Contact: 1-703-739-0800; http://www.abiworld.org/
Feb. 24-25, 2011
AMERICAN BANKRUPTCY INSTITUTE
Valcon
Four Seasons Las Vegas, Las Vegas, Nev.
Contact: 1-703-739-0800; http://www.abiworld.org/
Mar. 4, 2011
AMERICAN BANKRUPTCY INSTITUTE
Bankruptcy Battleground West
Hyatt Regency Century Plaza, Los Angeles, Calif.
Contact: 1-703-739-0800; http://www.abiworld.org/
Mar. 7-9, 2011
AMERICAN BANKRUPTCY INSTITUTE
Conrad Duberstein Moot Court Competition
Duberstein U.S. Courthouse, New York, N.Y.
Contact: 1-703-739-0800; http://www.abiworld.org/
Mar. 10, 2011
AMERICAN BANKRUPTCY INSTITUTE
Nuts and Bolts - Florida
Tampa, Fla.
Contact: 1-703-739-0800; http://www.abiworld.org/
Mar. 10-12, 2011
AMERICAN BANKRUPTCY INSTITUTE
SUCL/ Alexander L. Paskay Seminar on
Bankruptcy Law and Practice
Marriott Tampa Waterside, Tampa, Fla.
Contact: 1-703-739-0800; http://www.abiworld.org/
Mar. 17-19, 2011
AMERICAN BANKRUPTCY INSTITUTE
Byrne Judicial Clerkship Institute
Pepperdine University School of Law, Malibu, Calif.
Contact: 1-703-739-0800; http://www.abiworld.org/
Mar. 31-Apr. 3, 2011
AMERICAN BANKRUPTCY INSTITUTE
Annual Spring Meeting
Gaylord National Resort & Convention Center,
National Harbor, Md.
Contact: 1-703-739-0800; http://www.abiworld.org/
May 5, 2011
AMERICAN BANKRUPTCY INSTITUTE
Nuts and Bolts - New York City
Association of the Bar of the City of New York,
New York, N.Y.
Contact: 1-703-739-0800; http://www.abiworld.org/
May 6, 2011
AMERICAN BANKRUPTCY INSTITUTE
New York City Bankruptcy Conference
Hilton New York, New York, N.Y.
Contact: 1-703-739-0800; http://www.abiworld.org/
June 6, 2011
AMERICAN BANKRUPTCY INSTITUTE
Canadian-American Cross-Border Insolvency Symposium
Fairmont Royal York, Toronto, Ont.
Contact: 1-703-739-0800; http://www.abiworld.org/
June 9-12, 2011
AMERICAN BANKRUPTCY INSTITUTE
Central States Bankruptcy Workshop
Grand Traverse Resort and Spa, Traverse City, Mich.
Contact: http://www.abiworld.org/
July 21-24, 2011
AMERICAN BANKRUPTCY INSTITUTE
Northeast Bankruptcy Conference
Hyatt Regency Newport, Newport, R.I.
Contact: 1-703-739-0800; http://www.abiworld.org/
July 27-30, 2011
AMERICAN BANKRUPTCY INSTITUTE
Southeast Bankruptcy Workshop
The Sanctuary at Kiawah Island, Kiawah Island, S.C.
Contact: 1-703-739-0800; http://www.abiworld.org/
Aug. 4-6, 2011
AMERICAN BANKRUPTCY INSTITUTE
Mid-Atlantic Bankruptcy Workshop
Hotel Hershey, Hershey, Pa.
Contact: 1-703-739-0800; http://www.abiworld.org/
Oct. 14, 2011
AMERICAN BANKRUPTCY INSTITUTE
NCBJ/ABI Educational Program
Tampa Convention Center, Tampa, Fla.
Contact: 1-703-739-0800; http://www.abiworld.org/
Oct. __, 2011
AMERICAN BANKRUPTCY INSTITUTE
International Insolvency Symposium
Dublin, Ireland
Contact: 1-703-739-0800; http://www.abiworld.org/
Oct. 25-27, 2011
TURNAROUND MANAGEMENT ASSOCIATION
Hilton San Diego Bayfront, San Diego, CA
Contact: http://www.turnaround.org/
Dec. 1-3, 2011
AMERICAN BANKRUPTCY INSTITUTE
23rd Annual Winter Leadership Conference
La Quinta Resort & Spa, La Quinta, Calif.
Contact: 1-703-739-0800; http://www.abiworld.org/
Apr. 19-22, 2012
AMERICAN BANKRUPTCY INSTITUTE
Annual Spring Meeting
Gaylord National Resort & Convention Center,
National Harbor, Md.
Contact: 1-703-739-0800; http://www.abiworld.org/
July 14-17, 2012
AMERICAN BANKRUPTCY INSTITUTE
Southeast Bankruptcy Workshop
The Ritz-Carlton Amelia Island, Amelia Island, Fla.
Contact: 1-703-739-0800; http://www.abiworld.org/
Aug. 2-4, 2012
AMERICAN BANKRUPTCY INSTITUTE
Mid-Atlantic Bankruptcy Workshop
Hyatt Regency Chesapeake Bay, Cambridge, Md.
Contact: 1-703-739-0800; http://www.abiworld.org/
Nov. 29 - Dec. 2, 2012
AMERICAN BANKRUPTCY INSTITUTE
Winter Leadership Conference
JW Marriott Starr Pass Resort & Spa, Tucson, Ariz.
Contact: 1-703-739-0800; http://www.abiworld.org/
The Meetings, Conferences and Seminars column appears in the
Troubled Company Reporter each Wednesday. Submissions via
e-mail to conferences@bankrupt.com are encouraged.
Last Updated: August 15, 2010
*********
Monday's edition of the TCR delivers a list of indicative prices
for bond issues that reportedly trade well below par. Prices are
obtained by TCR editors from a variety of outside sources during
the prior week we think are reliable. Those sources may not,
however, be complete or accurate. The Monday Bond Pricing table
is compiled on the Friday prior to publication. Prices reported
are not intended to reflect actual trades. Prices for actual
trades are probably different. Our objective is to share
information, not make markets in publicly traded securities.
Nothing in the TCR constitutes an offer or solicitation to buy or
sell any security of any kind. It is likely that some entity
affiliated with a TCR editor holds some position in the issuers"
public debt and equity securities about which we report.
Each Tuesday edition of the TCR contains a list of companies with
insolvent balance sheets whose shares trade higher than $3 per
share in public markets. At first glance, this list may look like
the definitive compilation of stocks that are ideal to sell short.
Don't be fooled. Assets, for example, reported at historical cost
net of depreciation may understate the true value of a firm's
assets. A company may establish reserves on its balance sheet for
liabilities that may never materialize. The prices at which
equity securities trade in public market are determined by more
than a balance sheet solvency test.
A list of Meetings, Conferences and Seminars appears in each
Wednesday's edition of the TCR. Submissions about insolvency-
related conferences are encouraged. Send announcements to
conferences@bankrupt.com/
On Thursdays, the TCR delivers a list of recently filed
Chapter 11 cases involving less than $1,000,000 in assets and
liabilities delivered to nation's bankruptcy courts. The list
includes links to freely downloadable images of these small-dollar
petitions in Acrobat PDF format.
Each Friday's edition of the TCR includes a review about a book of
interest to troubled company professionals. All titles are
available at your local bookstore or through Amazon.com. Go to
http://www.bankrupt.com/books/to order any title today.
Monthly Operating Reports are summarized in every Saturday edition
of the TCR.
The Sunday TCR delivers securitization rating news from the week
then-ending.
For copies of court documents filed in the District of Delaware,
please contact Vito at Parcels, Inc., at 302-658-9911. For
bankruptcy documents filed in cases pending outside the District
of Delaware, contact Ken Troubh at Nationwide Research &
Consulting at 207/791-2852.
*********
S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter is a daily newsletter co-published
by Bankruptcy Creditors" Service, Inc., Fairless Hills,
Pennsylvania, USA, and Beard Group, Inc., Frederick, Maryland,
USA. Marites Claro, Joy Agravante, Rousel Elaine Tumanda, Howard
C. Tolentino, Joseph Medel C. Martirez, Denise Marie Varquez,
Philline Reluya, Ronald C. Sy, Joel Anthony G. Lopez, Cecil R.
Villacampa, Sheryl Joy P. Olano, Carlo Fernandez, Christopher G.
Patalinghug, and Peter A. Chapman, Editors.
Copyright 2010. All rights reserved. ISSN: 1520-9474.
This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding, electronic
re-mailing and photocopying) is strictly prohibited without prior
written permission of the publishers. Information contained
herein is obtained from sources believed to be reliable, but is
not guaranteed.
The TCR subscription rate is $775 for 6 months delivered via e-
mail. Additional e-mail subscriptions for members of the same
firm for the term of the initial subscription or balance thereof
are $25 each. For subscription information, contact Christopher
Beard at 240/629-3300.
*** End of Transmission ***