/raid1/www/Hosts/bankrupt/TCR_Public/101106.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
Saturday, November 6, 2010, Vol. 14, No. 308
Headlines
ADVANTA CORP: Ends September With $106.5 Million Cash
BOSQUE POWER: Posts $3.0 Million Net Loss in August
BOSQUE POWER: Ends September 30 Quarter With $76.2 Million Cash
CANAL CORP: Has $7.3 Million Cash at October 3
CATHOLIC CHURCH: Wilmington Has $1.3 Million Cash at August 31
GENERAL GROWTH: Posts $139.5 Million Net Loss in September
GENERAL MOTORS: Old GM Has $964,172,000 Cash at Aug. 31
LEHMAN BROTHERS: Has $20.278 Billion Cash at September 30
MESA AIR: Incurs $82,023,000 Net Loss in September
OTC HOLDINGS: Reports $6.7 Mil. Net Loss for September
SUMNER REGIONAL: Reports $790,440 Net Income in September
TRICO MARINE: Posts $45MM Net Loss in Aug. 25 - Sept. 30 Period
WASHINGTON MUTUAL: Posts $81.7 Million Net Loss in September
*********
ADVANTA CORP: Ends September With $106.5 Million Cash
-----------------------------------------------------
Advanta Corp. and certain of its subsidiaries filed on
October 29, 2010, their unaudited monthly operating report for
September 2010 with the U.S. Bankruptcy Court for the District of
Delaware.
The Debtors ended September 2010 with $106.5 million in cash, from
$106.6 million at the beginning of the period. The Company paid a
total of $777,442.58 in professional fees and $18,865.71 in
professional expenses in September.
Advanta reported a net loss of $21.1 million in September 2010.
At September 30, 2010, Advanta Corp. had $258.3 million in total
assets, $341.8 million in total liabilities, and a stockholders'
deficit of $83.5 million.
A copy of the Debtors' September 2010 monthly operating report is
available at no charge at http://researcharchives.com/t/s?6d79
About Advanta Corp.
Advanta Corp. -- http://www.advanta.com/-- has had a 59-year
history of being a leading innovator in the financial services
industry and of providing great value to its stakeholders,
including its senior retail note holders and shareholders, prior
to the recent reversals. It has also been a major civic and
charitable force in the communities in which it is based,
particularly in the Greater Philadelphia area.
In June 2009, the Federal Deposit Insurance Corporation placed
significant restrictions on the activities and operations of
Advanta Bank Corp., a wholly owned subsidiary of the Company, as
the Bank's capital ratios were below required regulatory levels.
On November 8, 2009, Advanta Corp. filed for Chapter 11 (Bankr. D.
Del. Case No. 09-13931). Attorneys at Weil, Gotshal & Manges LLP,
and Richards, Layton & Finger, P.A., serve as bankruptcy counsel.
Alvarez & Marsal serves as financial advisor. The Garden City
Group, Inc., serves as claims agent. The filing did not include
Advanta Bank Corp. The petition says that Advanta Corp.'s assets
totaled $363,000,000 while debts totaled $331,000,000 as of
September 30, 2009.
BOSQUE POWER: Posts $3.0 Million Net Loss in August
---------------------------------------------------
Bosque Power Company, LLC, filed on September 20, 2010, its
monthly operating report for the month of August 2010. The
Company reported a net loss of $3.0 million for the period.
The Company's balance sheet at August 31, 2010, showed
$747.7 million in total assets, $460.8 million in total
liabilities, and stockholders' equity of $286.9 million. The
Company ended the period with $71.1 million in cash (includes
restricted cash), compared to $71.5 million at the beginning of
the period.
The Company paid a total of $1,594,969 in professional fees for
the period.
A copy of the monthly operating report is available for free at:
http://bankrupt.com/misc/bosquepower.august2010mor.pdf
About Bosque Power
Laguna Park, Texas-based Bosque Power Company, LLC, owns and
operates an 800-megawatt natural gas fired power plant. The
power-generating facility located in Laguna Park, commenced
operations as a natural-gas power plant in 2000. Bosque Power
Partners owns 100% of the membership interest in Bosque Power.
Bosque Power filed for Chapter 11 protection on March 24, 2010
(Bankr. W.D. Tex. Case No. 10-60348). Henry J. Kaim, Esq., at
King & Spalding LLP, serves as bankruptcy counsel to the Debtor.
The Debtor also tapped Morgan, Lewis & Bockius LLP as special
corporate counsel; Greenhill & Co. LLC as financial advisor; and
Kurtzman Carson Consultants LLC as claims agent. In its petition,
the Debtor estimated assets and debts both ranging from
$100 million to $500 million.
BOSQUE POWER: Ends September 30 Quarter With $76.2 Million Cash
---------------------------------------------------------------
Bosque Power Company, LLC, filed on October 20, 2010, a post-
confirmation operating report for the quarter ended September 30,
2010.
The Company reported that disbursements to be made pursuant to the
Plan, the confirmation of which occurred on October 7, 2010, have
not began.
The Company's statement of cash receipts and disbursements for the
quarter showed:
Cash, beginning of quarter $71,770,319
Receipts $10,131,184
Disbursements $5,718,724
Net Cash Flow $4,412,459
Cash, End of Quarter $76,182,779
A copy of the post-confirmation quarterly report is available for
free at http://bankrupt.com/misc/bosque.sept302010.qpcr.pdf
About Bosque Power
Laguna Park, Texas-based Bosque Power Company, LLC, owns and
operates an 800-megawatt natural gas fired power plant. The
power-generating facility located in Laguna Park, commenced
operations as a natural-gas power plant in 2000. Bosque Power
Partners owns 100% of the membership interest in Bosque Power.
Bosque Power filed for Chapter 11 protection on March 24, 2010
(Bankr. W.D. Tex. Case No. 10-60348). Henry J. Kaim, Esq., at
King & Spalding LLP, serves as bankruptcy counsel to the Debtor.
The Debtor also tapped Morgan, Lewis & Bockius LLP as special
corporate counsel; Greenhill & Co. LLC as financial advisor; and
Kurtzman Carson Consultants LLC as claims agent. In its petition,
the Debtor estimated assets and debts both ranging from
$100 million to $500 million.
Confirmation of the Plan occurred on October 7, 2010.
Disbursements to be made pursuant plan have not begun.
CANAL CORP: Has $7.3 Million Cash at October 3
----------------------------------------------
On October 26, 2010, Canal Corporation filed with the Bankruptcy
Court its unaudited monthly operating reports for the period
September 6, 2010 to October 3, 2010.
On October 26, 2010, Canal Corporation filed with the U.S.
Bankruptcy Court for the Eastern District of Virginia in Richmond
its unaudited monthly operating report for the period September 6,
2010, to October 3, 2010.
The Debtor reported a net loss of $264,556 for the period.
As of October 3, 2010, the Debtor had $41.3 million in total
assets, $420.1 million in total liabilities, and a stockholders'
deficit of $378.9 million. The Company had cash and cash
equivalents of $7.3 million at October 3, 2010, compared to
$7.4 million at September 5, 2010.
A full-text copy of the monthly operating report for the period
September 6, 2010, to October 3, 2010, is available for free at:
http://researcharchives.com/t/s?6d78
About Canal Corp.
Headquartered in Richmond, Virginia, Canal Corp., formerly
Chesapeake Corporation, supplies specialty paperboard packaging
products in Europe and an international supplier of plastic
packaging products to niche end-use markets. The Company has 44
locations in Europe, North America, Africa and Asia.
Chesapeake and 18 affiliates filed Chapter 11 petitions (Bankr.
E.D. Va. Lead Case No. 08-336642) on Dec. 29, 2008. Lawyers at
Hunton & Williams LLP represent the Debtors. Chesapeake tapped
Alvarez and Marsal North America LLC, and Goldman Sachs & Co. as
financial advisors. Tavenner & Beran PLC serves as conflicts
counsel and Hammonds LLP as special counsel. Kurtzman Carson
Consultants LLC serves as claims agent. The United States Trustee
for Region 4 appointed seven creditors to serve on an Official
Committee of Unsecured Creditors for the Debtors' Chapter 11
cases. Lawyers at Greenberg Traurig LLP represent the Committee.
In its petition, Chesapeake listed $936,600,000 in total assets
and $937,100,000 in total debts as of September 28, 2008.
CATHOLIC CHURCH: Wilmington Has $1.3 Million Cash at August 31
--------------------------------------------------------------
Catholic Diocese of Wilmington, Inc.
Balance Sheet
As of August 31, 2010
ASSETS
Cash & Equivalents $1,303,357
Accounts Receivable (Net) 2,596,147
Payroll Receivable -
Notes Receivable 1,461,369
Advance PIA Distributions 1,825,901
Professional Retainers 545,000
Unrestricted Pooled Investments 87,082,285
Restricted Pooled Investments 28,456,644
Unallocated Audit Fees -
Other Assets 53,743
Real Estate 1,314,140
Assets Held for Others 1,517,005
-----------
TOTAL ASSETS $126,155,591
===========
LIABILITIES
Pre-Filing Accounts Payable $136,216
Payroll & Payroll Taxes Payable -
Payroll Garnishments Payable -
Accrued Vacation Time Payable 148,013
Blue Cross/Blue Shield Accrual 41,549
Accounts Payable Capital Campaign 13,872
Bonds Payable 11,000,000
Priest Pension 13,107,216
Lay Pensions 64,366,743
National Collections 373,696
Other Liabilities 34,286
Assets Held for Others 1,517,005
Pooled Investment Account Claims 75,772,888
-----------
TOTAL LIABILITIES 166,511,484
NET ASSETS
Beginning Year Net Assets (41,816,364)
Net Assets - Prepetition 4,138,712
Net Assets - Postpetition (2,678,241)
-----------
TOTAL NET ASSETS (40,355,893)
-----------
TOTAL LIABILITIES & NET ASSETS $126,155,591
===========
Catholic Diocese of Wilmington, Inc.
Statement of Operations
For the month ending August 31, 2010
CDOW Operations
CDOW Revenue
Assessments $180,666
Investment Income (3,446,482)
Operational Income 246,451
Designated Income (Education) 13,704
-----------
Total CDOW Revenue (3,005,661)
CDOW Expenses
Payroll & Taxes (218,068)
Medical Payments -
Other Compensation (48,402)
Other Operational (245,990)
Capital Expenditures -
Catholic Schools, Inc. -
Casa San Francisco -
Ministry to the Elderly -
Bankruptcy professionals (1,048,461)
Neumann Center (10,300)
Vision for the Future, Tuition Assistance -
Owed to Parishes (Cap Campaign) (552)
-----------
Total CDOW Expenses (1,571,773)
-----------
CDOW NET OPERATING CASH (4,577,434)
Program Services
Annual Appeal Revenue 393,130
Program Services Expenditures
Catholic Youth Organization (13,983)
Catholic Charities (85,858)
High School Appeal Allocation -
The Dialog (50,297)
-----------
Total Program Services Expenses (150,138)
-----------
PROGRAM SERVICES NET CASH 242,992
Benefits & Insurance Program Administration
Medical Program
Premiums Received 770,036
Expenses (1,092,689)
-----------
Net Medical (322,653)
Workers Compensation
Premiums Received -
Expenses -
-----------
Net Workers Comp -
Property & Liability Insurance
Premiums Received 49,364
Expenses (262,622)
-----------
Net P&L Insurance (213,258)
Pensions
Priests (55,650)
Lay Employees -
-----------
Total Pensions (55,650)
-----------
NET CHANGE IN LIQUIDITY ($4,926,003)
===========
Catholic Diocese of Wilmington, Inc.
Schedule of Cash Receipts and Disbursements
For the month ending August 31, 2010
CASH BEGINNING OF PERIOD $1,180,594
RECEIPTS
ASSESSMENTS 180,666
ANNUAL APPEAL 393,130
INSURANCE PREMIUMS 819,400
OTHER OPERATING 260,155
-----------
TOTAL RECEIPTS 1,653,351
DISBURSEMENTS
NET PAYROLL AND TAXES 218,068
INSURANCE PAYMENTS 1,355,311
OPERATING EXPENSES 297,771
OTHER 150,138
PROFESSIONAL FEES -
U.S. TRUSTEE QUARTERLY FEES 9,932
COURT COSTS -
-----------
TOTAL DISBURSEMENTS 2,031,220
-----------
NET CASH FLOW (377,869)
-----------
Transfers out 7,473
Transfers in 500,000
Other transfers/returns/fees -
-----------
CASH - END OF PERIOD $1,295,252
===========
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).
GENERAL GROWTH: Posts $139.5 Million Net Loss in September
----------------------------------------------------------
On October 29, 2010, General Growth Properties, Inc., and
certain of the Company's domestic subsidiaries filed their monthly
operating report for September 2010 with the U.S. Bankruptcy Court
for the Southern District of New York.
The Debtors reported a net loss attributable to common
shareholders of $139.5 million on total revenues of $207.8 million
for the month ended September 30, 2010. Operating income was
$72.1 million.
At September 30, 2010, the Debtors had $25.78 billion in total
assets, $24.17 billion in total liabilities, $235.9 million in
in total redeemable noncontrolling interests, and $1.37 billion in
total equity.
A full-text copy of September 2010 monthly operating report is
available at no charge at http://researcharchives.com/t/s?6d7a
About General Growth
Based in Chicago, Illinois, General Growth Properties, Inc. --
http://www.ggp.com/-- is the second-largest U.S. mall owner,
having ownership interest in, or management responsibility for,
more than 200 regional shopping malls in 44 states, as well as
ownership in master planned community developments and commercial
office buildings. The Company's portfolio totals roughly
200 million square feet of retail space and includes more than
24,000 retail stores nationwide. General Growth is a self-
administered and self-managed real estate investment trust. The
Company's common stock is trading in the pink sheets under the
symbol GGWPQ.
General Growth Properties Inc. and its affiliates filed for
Chapter 11 protection on April 16, 2009 (Bankr. S.D.N.Y., Case No.
09-11977). Marcia L. Goldstein, Esq., Gary T. Holtzer, Esq.,
Adam P. Strochak, Esq., and Stephen A. Youngman, Esq., at Weil,
Gotshal & Manges LLP, serve as bankruptcy counsel. Kirkland &
Ellis LLP is co-counsel. Kurtzman Carson Consultants LLC has been
engaged as claims agent. The Company also hired AlixPartners LLP
as financial advisor and Miller Buckfire Co. LLC, as investment
bankers. The Debtors disclosed $29,557,330,000 in assets and
$27,293,734,000 in debts as of December 31, 2008.
Bankruptcy Creditors' Service, Inc., publishes General Growth
Bankruptcy News. The newsletter tracks the Chapter 11 proceeding
undertaken by General Growth Properties Inc. and its various
affiliates. (http://bankrupt.com/newsstand/or 215/945-7000)
GENERAL MOTORS: Old GM Has $964,172,000 Cash at Aug. 31
-------------------------------------------------------
Motors Liquidation Company, et al.
Unaudited Condensed Combined Statement of Net Assets
As of August 31, 2010
ASSETS:
Cash and cash equivalents $964,172,000
Due from affiliates 8,000
Prepaid expenses 3,098,000
Other current assets 20,774,000
-----------------
Total Current Assets 988,052,000
Property, plant and equipment
Land and building 62,419,000
Machinery and equipment 46,584,000
-----------------
Total property, plant and equipment 109,003,000
Investment in GMC -
Restricted cash 73,760,000
Other assets -
-----------------
Total Assets $1,170,815,000
=================
LIABILITIES:
DIP Financing $1,229,268,000
Accounts payable 11,169,000
Due to GM LLC 192,000
Due to affiliates 969,000
Accrued sales, use and other taxes 1,806,000
Accrued professional fees 37,991,000
Other accrued liabilities 17,081,000
-----------------
Total current liabilities 1,298,476,000
Liabilities subject to compromise $32,216,370,000
-----------------
Total Liabilities 33,514,846,000
-----------------
Net Assets (Liabilities) ($32,344,031,000)
=================
Motors Liquidation Company, et al.
Unaudited Condensed Combined Statement of Operations
For the Month Ended August 31, 2010
Rental and other income $1,368,000
Selling, administrative and other expenses 4,165,000
-----------------
Operating loss (2,797,000)
Interest expense 5,293,000
Interest income (268,000)
-----------------
Loss before reorganization items
& income taxes (7,822,000)
Reorganization items (gain)/loss 23,380,000
-----------------
Income (Loss) before income taxes (31,202,000)
Income taxes -
-----------------
Net Income (Loss) ($31,202,000)
=================
Motors Liquidation Company, et al.
Unaudited Condensed Combined Statement of Cash Flows
For the Month Ended August 31, 2010
Cash Flows from Operating Activities:
Net Income ($31,202,000)
Adjustments to reconcile net income (loss) to
net cash provided by (used in) operating
activities:
Non-cash interest expense 5,293,000
Reorganization items (gain)/loss 23,380,000
Reorganization related payments (9,215,000)
Changes in assets & liabilities:
Due from affiliates (143,000)
Prepaid expenses 274,000
Due to /(due from) GM LLC 127,000
Other receivables 0
Other current assets 0
Other assets 224,000
Accounts payable (1,214,000)
Accrued payroll & employee benefits 0
Accrued sales, use and other taxes (57,000)
Other accrued liabilities (2,000)
-----------------
Net Cash used in Operating Activities (12,535,000)
Cash Flows from Investing Activities:
Proceeds from disposal of assets 142,000
Proceeds from sale & dissolution
of subsidiaries 0
Changes in restricted cash 0
-----------------
Net cash provided by investing activities 142,000
-----------------
Decrease in cash & cash equivalents (12,393,000)
Cash & cash equivalents
at beginning of period 976,565,000
-----------------
Cash & cash equivalents at end of period $964,172,000
=================
According to Motors Liquidation Co. Vice President and Treasurer
James Selzer, the Debtors paid a total of $8,373,000 to 20
professionals retained in their Chapter 11 cases the month ended
August 31, 2010.
A full-text copy of the August 2010 Operating Report is available
for free at http://bankrupt.com/misc/GMJuly2010MOR.pdf
About General Motors
With its global headquarters in Detroit, Michigan, General Motors
Company -- http://www.gm.com/-- is one of the world's largest
automakers. GM employs 205,000 people in every major region of
the world and does business in some 157 countries. GM and its
strategic partners produce cars and trucks in 31 countries, and
sell and service these vehicles through the following brands:
Buick, Cadillac, Chevrolet, FAW, GMC, Daewoo, Holden, Jiefang,
Opel, Vauxhall and Wuling. GM's largest national market is China,
followed by the United States, Brazil, Germany, the United
Kingdom, Canada, and Italy. GM's OnStar subsidiary is the
industry leader in vehicle safety, security and information
services.
General Motors Co. is 60.8% owned by the U.S. Government. It was
formed to acquire the operations of General Motors Corporation
through a sale under 11 U.S.C. Sec. 363 following Old GM's
bankruptcy filing. The deal was closed on July 10, 2009, and Old
GM changed its name to Motors Liquidation Co. Old GM remains
subject to a pending Chapter 11 reorganization case before the
U.S. Bankruptcy Court for the Southern District of New York.
At June 30, 2010, GM had $131.899 billion in total assets,
$101.00 billion in total liabilities, $6.998 billion in preferred
stock, and $23.901 billion in stockholders' equity.
New GM has a 'BB-' corporate credit rating from Standard & Poor's
and a 'BB-' issuer default rating from Fitch.
About Motors Liquidation
General Motors Corporation and three of its affiliates filed for
Chapter 11 protection on June 1, 2009 (Bankr. S.D.N.Y. Lead Case
No. 09-50026). The Honorable Robert E. Gerber presides over the
Chapter 11 cases. Harvey R. Miller, Esq., Stephen Karotkin, Esq.,
and Joseph H. Smolinsky, Esq., at Weil, Gotshal & Manges LLP,
assist the Debtors in their restructuring efforts. Al Koch at AP
Services, LLC, an affiliate of AlixPartners, LLP, serves as the
Chief Executive Officer for Motors Liquidation Company. GM is
also represented by Jenner & Block LLP and Honigman Miller
Schwartz and Cohn LLP as counsel. Cravath, Swaine, & Moore LLP is
providing legal advice to the GM Board of Directors. GM's
financial advisors are Morgan Stanley, Evercore Partners and the
Blackstone Group LLP.
The U.S. Trustee has appointed an Official Committee of Unsecured
Creditors and a separate Official Committee of Unsecured Creditors
Holding Asbestos-Related Claims. Lawyers at Kramer Levin Naftalis
& Frankel LLP serve as bankruptcy counsel to the Creditors
Committee. Attorneys at Butzel Long serve as counsel regarding
supplier contract matters. FTI Consulting, Inc., serves as
financial advisors to the Creditors Committee. Elihu Inselbuch,
Esq., at Caplin & Drysdale, Chartered, represents the Asbestos
Committee. Legal Analysis Systems, Inc., serves as asbestos
valuation analyst.
Bankruptcy Creditors' Service, Inc., publishes General Motors
Bankruptcy News. The newsletter tracks the Chapter 11 proceeding
undertaken by General Motors Corp. and its various affiliates.
(http://bankrupt.com/newsstand/or 215/945-7000)
LEHMAN BROTHERS: Has $20.278 Billion Cash at September 30
---------------------------------------------------------
Lehman Brothers Holdings Inc. disclosed these cash receipts and
disbursements of the company, its affiliated debtors and other
controlled entities for the month ended September 30, 2010:
Beginning Cash & Investments (9/1/10) $19,816,000,000
Total Sources of Cash 1,035,000,000
Total Uses of Cash (590,000,000)
FX Fluctuation (17,000,000)
---------------
Ending Cash & Investments (9/30/10) $20,278,000,000
LBHI reported $2.369 billion in cash and investments as of
September 1, 2010 and $2.509 billion as of September 30, 2010.
The monthly operating report also showed that from September 15,
2008 to September 30, 2010, a total of $1,013,116,000 was paid to
professionals that were retained in the Debtors' Chapter 11
cases. Of the amount, $356.396 million was paid to the Debtors'
turnaround manager, Alvarez & Marsal LLC, while $237.038 million
was paid to their bankruptcy counsel, Weil Gotshal & Manges LLP.
A full-text copy of the September 2010 Operating Report is
available for free at:
http://bankrupt.com/misc/LehmanMORSept2010.pdf
About Lehman Brothers
Lehman Brothers Holdings Inc. -- http://www.lehman.com/-- was the
fourth largest investment bank in the United States. For more
than 150 years, Lehman Brothers has been a leader in the global
financial markets by serving the financial needs of corporations,
governmental units, institutional clients and individuals
worldwide.
Lehman Brothers filed for Chapter 11 bankruptcy September 15, 2008
(Bankr. S.D.N.Y. Case No. 08-13555). Lehman's bankruptcy petition
listed US$639 billion in assets and US$613 billion in debts,
effectively making the firm's bankruptcy filing the largest in
U.S. history. Several other affiliates followed thereafter.
The Debtors' bankruptcy cases are handled by Judge James M. Peck.
Harvey R. Miller, Esq., Richard P. Krasnow, Esq., Lori R. Fife,
Esq., Shai Y. Waisman, Esq., and Jacqueline Marcus, Esq., at Weil,
Gotshal & Manges, LLP, in New York, represent Lehman. Epiq
Bankruptcy Solutions serves as claims and noticing agent.
On September 19, 2008, the Honorable Gerard E. Lynch, Judge of the
U.S. District Court for the Southern District of New York, entered
an order commencing liquidation of Lehman Brothers, Inc., pursuant
to the provisions of the Securities Investor Protection Act (Case
No. 08-CIV-8119 (GEL)). James W. Giddens has been appointed as
trustee for the SIPA liquidation of the business of LBI
The Bankruptcy Court has approved Barclays Bank Plc's purchase
of Lehman Brothers' North American investment banking and
capital markets operations and supporting infrastructure for
US$1.75 billion. Nomura Holdings Inc., the largest brokerage
house in Japan, purchased LBHI's operations in Europe for US$2
plus the retention of most of employees. Nomura also bought
Lehman's operations in the Asia Pacific for US$225 million.
International Operations Collapse
Lehman Brothers International (Europe), the principal UK trading
company in the Lehman group, was placed into administration,
together with Lehman Brothers Ltd, LB Holdings PLC and LB UK RE
Holdings Ltd. Tony Lomas, Steven Pearson, Dan Schwarzmann and
Mike Jervis, partners at PricewaterhouseCoopers LLP, have been
appointed as joint administrators to Lehman Brothers International
(Europe) on September 15, 2008. The joint administrators have
been appointed to wind down the business.
Lehman Brothers Japan Inc. and Lehman Brothers Holdings Japan Inc.
filed for bankruptcy in the Tokyo District Court on September 16.
Lehman Brothers Japan Inc. reported about JPY3.4 trillion
(US$33 billion) in liabilities in its petition.
Bankruptcy Creditors' Service, Inc., publishes Lehman Brothers
Bankruptcy News. The newsletter tracks the Chapter 11 proceeding
undertaken by Lehman Brothers Holdings, Inc., and other insolvency
and bankruptcy proceedings undertaken by its affiliates.
(http://bankrupt.com/newsstand/or 215/945-7000)
MESA AIR: Incurs $82,023,000 Net Loss in September
--------------------------------------------------
Mesa Air Group, Inc., et al.
Condensed Consolidated Balance Sheet
As of September 30, 2010
ASSETS
Current Assets
Cash and cash equivalents $57,733,000
Short-term investments 0
Restricted investments 9,692,000
Receivables, net of allowance 6,278,000
Inventories, net of allowance 26,636,000
Prepaid expenses and other assets 95,320,000
--------------
Total current assets 195,659,000
Property and equipment, net 496,856,000
Security and other deposits 6,430,000
Other assets 476,879,000
--------------
TOTAL ASSETS $1,175,823,000
==============
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities Not Subject to Compromise:
Current Liabilities
Accounts payable $5,891,000
Air traffic liability 4,950,000
Other accrued expenses 42,611,000
Income tax payable 2,586,000
Deferred revenue & other current liabilities 0
--------------
Total current liabilities not subject to 56,039,000
compromise
Deferred credits and other liabilities 59,107,000
Long-term deferred income tax 156,719,000
Other long-term debt postpetition 0
--------------
Total liabilities not subject to compromise 215,827,000
Liabilities subject to compromise 1,388,378,000
--------------
Total Liabilities 1,660,244,000
Stockholders' Equity
Preferred stock, no par value, authorized 0
2,000,000 shares, none issued
Common stock, no par value and additional 118,676,000
paid-in capital, 900,000,000 shares
authorized; 175,217,249 and 175,217,249
shares issued and outstanding, respectively
Deferred stock compensation 1,667,000
Retained earnings (604,764,000)
--------------
Total shareholders' equity (484,421,000)
--------------
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY $1,175,823,000
==============
Mesa Air Group, Inc., et al.
Condensed Consolidated Statement of Operations
For the Month Ended September 30, 2010
Revenues
Passenger $60,733,000
Cargo 0
Other 456,000
--------------
Total revenue 61,188,000
--------------
Operating Expenses
Flight operations 14,270,000
Flight operations - nonoperating aircraft 1,029,000
Aircraft fuel 17,392,000
Aircraft and traffic servicing 3,567,000
Maintenance 8,300,000
Promotion and sales 363,000
General and administrative 4,804,000
Depreciation and amortization 2,879,000
impairment of long-lived asset 0
--------------
Total operating expenses 52,605,000
Operating Income (Loss) 8,584,000
Nonoperating Income (Expense)
Interest income 315,000
Interest expense (954,000)
Other, net (708,000)
--------------
Total nonoperating income (expense) (1,348,000)
Income (Loss) before reorganization items and 7,236,000
Income Taxes
Income Taxes (44,824,000)
Loss (Gain) on reorganization items 134,345,000
Income (Loss) before discontinued operations (82,285,000)
Loss (Gain) from discontinued operations (262,000)
--------------
NET INCOME (LOSS) ($82,023,000)
==============
Mesa Air Group, Inc., et al.
Condensed Consolidated Statement of Cash Flows
For the Month Ended September 30, 2010
Cash Flows from Operating Activities:
Net income (loss) from continuing operations ($82,285,000)
Net income (loss) from discontinued operations 262,000
--------------
Net income (loss) (82,023,000)
Adjustments to reconcile net loss to net cash
used in operating activities:
Depreciation and amortization 2,879,000
Impairment charges 0
Amortization of deferred credits (34,949,000)
Amortization of restricted stock awards 33,000
Amortization of contract incentive payments 27,000
Provisions for obsolete expendable parts 136,000
and supplies
Changes in operating assets and liabilities:
Net (purchase) sales of investment securities 1,478,000
Receivables 13,181,000
Expendable parts and supplies 67,000
Prepaid expenses and other assets 15,910,000
Other assets 0
Accounts payable (11,215,000)
Income taxes payable (44,252,000)
Air traffic liability 0
Other accrued liabilities 149,831,000
--------------
Net cash provided by (used in) operating 11,104,000
activities
Cash Flows from Reorganization Activities:
Net cash provided by (used in) reorganization (134,345,000)
activities
--------------
Total net cash provided by (used in) operating (123,241,000)
activities
Cash Flows from Investing Activities:
Capital expenditures (1,607,000)
Proceeds from sale of flight equipment and 0
expendable inventory
Change in restricted cash 659,000
Equity method investment 637,000
Investment deposits 0
Change in other assets 1,000
Net returns (payments) of lease and equipment 899,000
deposits
--------------
Net cash (used in) provided by investing 588,000
activities
Cash Flows from Financing Activities:
Unsecured claims for rejected aircraft 124,701,000
Principal payments on long-term borrowings (2,523,000)
--------------
Net cash (used in) provided by financing 122,178,000
activities
Increase (decrease) in cash and cash (474,000)
equivalents
Cash and cash equivalents at beginning of 58,207,000
period
--------------
Cash and cash equivalents at end of period $57,733,000
==============
About Mesa Air Group
Mesa currently operates 130 aircraft with approximately 700 daily
system departures to 127 cities, 41 states, Canada, and Mexico.
Mesa operates as Delta Connection, US Airways Express and United
Express under contractual agreements with Delta Air Lines, US
Airways and United Airlines, respectively, and independently as
Mesa Airlines and go! Mokulele. This operation links Honolulu to
the neighbor island airports of Hilo, Kahului, Kona and Lihue. The
Company, founded by Larry and Janie Risley in New Mexico in 1982,
has approximately 3,500 employees.
Mesa Air Group Inc. and its units filed their Chapter 11 petitions
Jan. 5 in New York (Bankr. S.D.N.Y. Case No. 10-10018), listing
assets of $976 million against debt totaling $869 million as of
Sept. 30, 2009.
Richard M. Pachulski, Esq., and Laura Davis Jones, Esq., at
Pachulski Stang Ziehl & Jones LLP, serve as local counsel.
Imperial Capital LLC is the investment banker. Epiq Bankruptcy
Solutions is claims and notice agent.
Bankruptcy Creditors' Service, Inc., publishes Mesa Air Bankruptcy
News. The newsletter tracks the Chapter 11 proceedings undertaken
by Mesa Air Group Inc. and its units.
(http://bankrupt.com/newsstand/or 215/945-7000).
OTC HOLDINGS: Reports $6.7 Mil. Net Loss for September
------------------------------------------------------
Bill Rochelle, the bankruptcy columnist for Bloomberg News,
reports that Oriental Trading Co. reported a $6.7 million net loss
from the beginning of the Chapter 11 case on Aug. 25 through the
end of September. Revenue for the period was $46.1 million.
Earnings before interest, taxes, depreciation and amortization
were $4.8 million. The net loss largely resulted from interest
expense of $5.6 million and $3.1 million in reorganization items.
About OTC Holdings
Omaha, Nebraska-based OTC Holdings Corporation filed for
Chapter 11 protection on August 25, 2010 (Bankr. D. Del. Case No.
10-12636). Affiliates OTC Investors Corporation (Bankr. D. Del.
Case No. 10-12637), Oriental Trading Company, Inc. (Bankr. D. Del.
Case No. 10-12638), Fun Express, Inc. (Bankr. D. Del. Case No.
10-12639), and Oriental Trading Marketing, Inc. (Bankr. D. Del.
Case No. 10-12640), filed separate Chapter 11 petitions on
August 25, 2010. The Debtors disclosed $463 million in total
assets and $757 million in total liabilities as of the Petition
Date.
Richard Hahn, Esq., My Chi To, Esq., Jae-Sun Chung, Esq., Huyue
Angela Zhang, Esq., and Jessica Katz, Esq., at Debevoise &
Plimpton LLP, assist the Debtors in their restructuring efforts.
Joel A. Waite, Esq., and Kenneth J. Enos, Esq., at Young, Conaway,
Stargatt & Taylor, serve as the Debtors' local counsel. Jefferies
& Company, Inc., is the Debtors' financial advisor. Protiviti,
Inc., is the Debtors' restructuring consultant. Kurtzman Carson
Consultants LLC is the Debtors' claims agent.
The Official Committee of Unsecured Creditors' Delaware counsel is
Ashby & Geddes, P.A.
SUMNER REGIONAL: Reports $790,440 Net Income in September
---------------------------------------------------------
SRHS Bankruptcy, Inc., formerly known as Sumner Regional Health
Systems, Inc., reported net income of $790,440 on $51,509 of net
revenue for the month of September 2010.
At September 30, 2010, the Debtor had $55.4 million in total
assets, $22.8 million in total liabilities, and a fund balance of
$32.6 million.
A copy of the monthly operating report for September 2010 is
available for free at:
http://bankrupt.com/misc/srhs.september2010mor.pdf
About Sumner Regional
Gallatin, Tennessee-based Sumner Regional Health Systems, Inc.,
operates hospitals in Tennessee. As of September 1, 2010, Sumner
Regional Health Systems, Inc., operates as a subsidiary of
Lifepoint Hospitals Inc.
On April 30, 2010, the Company and six affiliates filed for
bankruptcy protection under Chapter 11 of the Bankruptcy Code
(Bankr. M.D. Tenn. Lead Case No. 10-04766). Jeffrey w. Levitan,
Esq., and Adam T. Berkowitz, Esq., at Proskauer Rose, LLP, in New
York, represent the Debtors as lead counsel. Robert A. Guy, Esq.,
at Frost Brown Todd LLC, in Nashville, Tenn., represents the
Debtors as co-counsel. The Company estimated its assets and debts
at $100 million to $500 million at the time of the filing.
On June 24, 2010, the Bankruptcy Court entered an order
authorizing the sale of substantially all of the Debtors' assets
to LifePoint Acquisition Corp. and its successors and assigns2.
On July 30, 2010, the Debtors filed a motion in the Bankruptcy
Court to approve a settlement relating to the proposed
distribution of proceeds from the sale. On August 17, 2010, the
Court entered an order granting the Settlement Motion.
TRICO MARINE: Posts $45MM Net Loss in Aug. 25 - Sept. 30 Period
---------------------------------------------------------------
On October 29, 2010, Trico Marine Services, Inc., and certain of
its subsidiaries, Trico Marine Assets, Inc., Trico Holdco, LLC,
Trico Marine Operators, Inc., Trico Marine Cayman, LP, and Trico
Marine International, Inc., filed their unaudited combined monthly
operating report for the period August 25, 2010, through
September 30, 2010, with the United States Bankruptcy Court for
the District of Delaware.
Trico Marine Services reported a net loss of $45.0 million on $0
revenue for the period.
At September 30, 2010, Trico Marine Services' balance sheet showed
$409.4 million in total assets, $152.0 million in total
liabilities, and stockholders' equity of $257.4 million.
A full-text copy of the monthly operating report is available for
free at http://researcharchives.com/t/s?6d7d
About Trico Marine
Texas-based Trico Marine Services, Inc. --
http://www.tricomarine.com/-- provides subsea services, subsea
trenching and protection services, and towing and supply vessels.
Trico filed for Chapter 11 protection on August 25, 2010 (Bankr.
D. Del. Case No. 10-12653). John E. Mitchell, Esq., Angela B.
Degeyter, Esq., and Harry A. Perrin, Esq., at Vinson & Elkins LLP,
assist the Debtor in its restructuring effort.
The Debtor disclosed in court documents that it had $30.5 million
in assets and $353.6 million in liabilities as of the Petition
Date. The Company said in a regulatory filing in June that it had
assets of $904 million and liabilities of more than $1 billion.
Affiliates Trico Marine Assets, Inc. (Bankr. D. Del. Case No.
10-12648), Trico Marine Operators, Inc. (Case No. 10-12649), Trico
Marine International, Inc. (Case No. 10-12650), Trico Marine
Cayman, L.P. (Case No. 10-12651), and Trico Holdco, LLC (Case No.
10-12652) filed separate Chapter 11 petitions.
Cahill Gordon & Reindell LLP is the Debtors' special counsel.
Alix Partners Services, LLC, is the Debtors' chief restructuring
officer. Epiq Bankruptcy Solutions is the Debtors' claims and
notice agent. Postlethwaite & Netterville serves as the Debtors'
accountant and Ernst & Young LLP serves as tax advisors.
Pricewaterhousecoopers LLC provides the independent accountants
and tax advisors for the Debtors.
WASHINGTON MUTUAL: Posts $81.7 Million Net Loss in September
------------------------------------------------------------
On October 29, 2010, Washington Mutual, Inc., and WMI Investment
Corp. filed their monthly operating report for September 2010 with
the United States Bankruptcy Court for the District of Delaware.
Washington Mutual reported a net loss of $81.7 million on total
revenues of ($556.2) million for the month of September.
At September 30, 2010, Washington Mutual had $6.854 billion in
total assets, $8.366 billion in total liabilities, and a
shareholders' deficit of $1.512 billion. Washington Mutual ended
September 2010 with $4.535 billion in unrestricted cash and cash
equivalents compared to $4.537 billion in unrestricted cash and
cash equivalents at August 31, 2010. Washington Mutual paid a
total of $4.0 million in professional fees and reimbursed a total
of $332,187 in professional expenses in September.
WMI Investment reported a net loss of $11,890 on total revenues of
$2,652 for the month of September.
At September 30, 2010, WMI Investment had $921.41 million in total
assets, $14,825 in post-petition liabilities, and $921.40 million
in stockholders' equity. WMI Investment ended September with
$275.67 million in cash and cash equivalents, compared to cash and
cash equivalents of $275.64 million at August 31, 2010.
A full-text copy of Washington Mutual and WMI Investment's monthly
operating report for September 2010 is available at:
http://researcharchives.com/t/s?6d7b
About Washington Mutual
Based in Seattle, Washington, Washington Mutual Inc. --
http://www.wamu.com/-- is a holding company for Washington Mutual
Bank as well as numerous non-bank subsidiaries. The Company
operates in four segments: the Retail Banking Group, which
operates a retail bank network of 2,257 stores in California,
Florida, Texas, New York, Washington, Illinois, Oregon, New
Jersey, Georgia, Arizona, Colorado, Nevada, Utah, Idaho and
Connecticut; the Card Services Group, which operates a nationwide
credit card lending business; the Commercial Group, which conducts
a multi-family and commercial real estate lending business in
selected markets, and the Home Loans Group, which engages in
nationwide single-family residential real estate lending,
servicing and capital markets activities.
Washington Mutual Bank was taken over September 25 by U.S.
government regulators. The next day, WaMu and its affiliate, WMI
Investment Corp., filed separate petitions for Chapter 11 relief
(Bankr. D. Del. 08-12229 and 08-12228, respectively). Wamu owns
100% of the equity in WMI Investment. When WaMu filed for
protection from its creditors, it disclosed assets of
$32,896,605,516 and debts of $8,167,022,695. WMI Investment
estimated assets of $500,000,000 to $1,000,000,000 with zero
debts.
Peter Calamari, Esq., and David Elsberg, Esq., at Quinn Emanuel
Urquhart Oliver & Hedges, LLP, serve as legal counsel to WMI with
responsibility for the litigation. Brian Rosen, Esq., at Weil,
Gotshal & Manges LLP, serves as legal counsel to WMI with
responsibility for the Chapter 11 case.
*********
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
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related conferences are encouraged. Send announcements to
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On Thursdays, the TCR delivers a list of recently filed
Chapter 11 cases involving less than $1,000,000 in assets and
liabilities delivered to nation's bankruptcy courts. The list
includes links to freely downloadable images of these small-dollar
petitions in Acrobat PDF format.
Each Friday's edition of the TCR includes a review about a book of
interest to troubled company professionals. All titles are
available at your local bookstore or through Amazon.com. Go to
http://www.bankrupt.com/books/to order any title today.
Monthly Operating Reports are summarized in every Saturday edition
of the TCR.
The Sunday TCR delivers securitization rating news from the week
then-ending.
For copies of court documents filed in the District of Delaware,
please contact Vito at Parcels, Inc., at 302-658-9911. For
bankruptcy documents filed in cases pending outside the District
of Delaware, contact Ken Troubh at Nationwide Research &
Consulting at 207/791-2852.
*********
S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter is a daily newsletter co-published
by Bankruptcy Creditors" Service, Inc., Fairless Hills,
Pennsylvania, USA, and Beard Group, Inc., Frederick, Maryland,
USA. Marites Claro, Joy Agravante, Rousel Elaine Tumanda, Howard
C. Tolentino, Joseph Medel C. Martirez, Denise Marie Varquez,
Philline Reluya, Ronald C. Sy, Joel Anthony G. Lopez, Cecil R.
Villacampa, Sheryl Joy P. Olano, Carlo Fernandez, Christopher G.
Patalinghug, and Peter A. Chapman, Editors.
Copyright 2010. All rights reserved. ISSN: 1520-9474.
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