/raid1/www/Hosts/bankrupt/TCR_Public/101129.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
Monday, November 29, 2010, Vol. 14, No. 331
Headlines
AIRTRAN HOLDINGS: Amends Benefits Agreements with Top Execs.
AVAYA INC: Bank Debt Trades at 9% Off in Secondary Market
B GREEN: Posts $118,009 Q3 Loss; Q1 and Q2 Reports Amended
BERNARD MADOFF: Bankruptcy Trustee Files 40 Clawback Suits
BEVERLY HILLS: Voluntary Chapter 11 Case Summary
BIOPACK ENVIRONMENTAL: Has $379,977 Net Loss for Sept. 30 Quarter
BLACK RAVEN: Incurs $835,000 Net Loss in Third Quarter
CANWEST GLOBAL: Post-Filing Claim Procedures Now In Effect
CARIBBEAN PETROLEUM: Unit Files Schedules of Assets & Liabilities
CARTHEW BAY: Posts C$370,400 Net Loss in September 30 Quarter
CHRYSLER LLC: Car Dealer's Suit Stays in New Mexico Court
CIRTRAN CORP: Posts $122,700 Net Loss in September 30 Quarter
CLAIRE'S STORES: Bank Debt Trades at 12% Off in Secondary Market
CLIFTON STAR: Posts C$9.6 Million Net Loss in Fiscal 2010
COLONIAL BANCGROUP: Wants Access to Cash in BB&T Deposit Account
COMSTOCK MINING: CEO Presents Report at Merriman's Investor Summit
CORD BLOOD: Incurs $1.88 Million Net Loss in September 30 Quarter
CORUS BANKSHARES: Disclosure Statement Hearing Set for Dec. 16
CREDIT-BASED ASSET: Sec. 341 Creditors' Meeting Set for Jan. 19
DANAOS CORP: Reports $978,000 Net Income in Third Quarter
DEEP DOWN: Posts $3.34 Million Net Loss in Sept. 30 Quarter
DELPHI CORP: DPH Says ATEL Admin. Claims Fully Resolved
DELPHI CORP: DPH Says JCI Should Pursue Claims Process
DELPHI CORP: Consents to D. Armstrong Filing Late Claim
DEX MEDIA WEST: Bank Debt Trades at 11% Off in Secondary Market
DURATEK PRECAST: Wittler Suit Stayed Following Bankruptcy
ENVIRONMENTAL SOLUTIONS: Posts $699,643 Net Loss in 3rd Quarter
FONAR CORP: Swings to $385,000 Profit in Q1 of Fiscal 2011
FREESCALE SEMICONDUCTOR: Debt Trades at 6% Off in Secondary Market
GAMETECH INT'L: Accountant Quits, Noted Weakness in Int. Controls
GREEN ENDEAVORS: Issues 50,000 Shares of Preferred Stock
GREENSHIFT CORP: Incurs $3 Million Net Loss in September 30 Qtr.
GUITAR CENTER: Bank Debt Trades at 9% Off in Secondary Market
HARRAH'S ENTERTAINMENT: HOC Bank Debt Trades at 103.33%
HELICOS BIOSCIENCES: Q3 Loss at $9MM; Add'l Capital Needed
HERBST GAMING: Bank Debt Trades at 43% Off in Secondary Market
HERCULES OFFSHORE: Bank Debt Trades at 7% Off in Secondary Market
HORSESHOE POINT: Case Summary & 9 Largest Unsecured Creditors
IBIO INC: JH Cohn Removes Going Concern Language in FY 2010 Report
INCOMING INC: Posts $3,397,118 Net Loss in August 31 Quarter
INTEGRATED FREIGHT: Incurs $524,000 Net Loss in Sept. 30 Quarter
INTERNATIONAL COAL: Amends Bylaws' Notice Requirements
JAMES HICKEY: Case Summary & 10 Largest Unsecured Creditors
JOEL WEBER: Case Summary & 13 Largest Unsecured Creditors
LEHMAN BROTHERS: Payments to Professionals Reach $1.055 Billion
LEHMAN BROTHERS: Wants to Recover $7 Billion from Barclays
LEHMAN BROTHERS: Proposes Settlement With Heritage Fields
LEHMAN BROTHERS: Proposes Settlement With European Administrators
LEHMAN BROTHERS: LBPF Has Deal with Madison, et al.
LEHMAN BROTHERS: LBSF Proposes to Terminate Derivative Contracts
LEVEL 3 COMMS: Bank Debt Trades at 7% Off in Secondary Market
LEXICON UNITED: Incurs $137,600 Net Loss in September 30 Quarter
LITHIUM TECHNOLOGY: Posts $1.9 Million Net Loss in Q1 2010
LINCOLN MILLWORK: Case Summary & 20 Largest Unsecured Creditors
MARK MURPHY: Value of Massillon, Ohio Property Pegged at $135,600
MARTIN CADILLAC: Can Auction Cadillac Dealership on December 3
METRO-GOLDWYN-MAYER: Debt Trades at 55% Off in Secondary Market
MEXICAN RESTAURANTS: Posts $448,042 Net Loss in Oct. 3 Quarter
MOMENTIVE PERFORMANCE: 99.48% to 99.99% of Sr. Notes Tendered
MOMENTIVE SPECIALTY: 90.52% of Second Lien Notes Tendered
MOUNTAIN PROVINCE: Shareholders Elect 7 Directors
MPG OFFICE: New CEO to Focus Restructuring on Downtown L.A.
MSGI SECURITY: Reports $914,500 Net Profit in Third Quarter
NEW LEAF: Lowers Net Loss to $1.62-Mil. in Q3 of 2010
NORTHSIDE TOWER: Real Property Sale Cuts Unsecured Claims by $4MM
OPEN SOLUTIONS: Bank Debt Trades at 16% Off in Secondary Market
OSI RESTAURANT: Bank Debt Trades at 6% Off in Secondary Market
PACIFIC SAFETY: Dec. 22 Shareholder Meeting Set for Zuni Merger
PATRIOT NATIONAL: Committee Taps KPMG LLP as New Accountant
PAX INDUSTRIES: Case Summary & 20 Largest Unsecured Creditors
PEARLAND SUNRISE: Cash Collateral Access Expires on November 30
PHOENIX FOOTWEAR: Posts $1.09MM Net Loss in October 2 Quarter
POINT BLANK: Wants to Sell Manufacturing Biz. for At Least $14MM
POLI-GOLD LLC: Gets OK to Hire Engelman Berger as Bankr. Counsel
POLI-GOLD LLC: Section 341(a) Meeting Scheduled for Jan. 7
POLI-GOLD LLC: Files List of 3 Largest Unsecured Creditors
RADIANT OIL: Posts $1.2 Million Net Loss in September 30 Quarter
REALOGY CORP: Bank Debt Trades at 7% Off in Secondary Market
REMINGTON RANCH: Plan Confirmation Hearing Set for March 7
ROBERT FIELDS: Voluntary Chapter 11 Case Summary
ROBERT GILBERT: Promises to Pay Creditors From Personal Salary
ROBINO-BAY COURT: Files Schedules of Assets and Liabilities
SANTEON GROUP: Earns $60,700 in September 30 Quarter
SASSAN KAVEH: Case Summary & 18 Largest Unsecured Creditors
TRIBUNE CO: Bank Debt Trades at 37% Off in Secondary Market
UNITED ENERGY: Posts $88,400 Net Loss in September 30 Quarter
US AIRWAYS: Talks with DOT on Delta Slot Swap Continue
VERTIS HOLDINGS: Confirmation Hearing Set for Dec. 16
YUKON-NEVADA: Posts $17.9 Million Net Loss in September 30 Quarter
ZANETT INC: Has Commitment from PNC for $10-Mil. Financing
* BOND PRICING -- For Week From November 22 - 26, 2010
*********
AIRTRAN HOLDINGS: Amends Benefits Agreements with Top Execs.
------------------------------------------------------------
On November 19, 2010, AirTran Holdings Inc. entered into Amendment
No. 1 to the existing executive benefits agreements with each of
Steven A. Rossum, executive vice president and general counsel;
Arne G. Haak, senior vice president and chief financial officer;
and Alfred J. Smith, III, senior vice president and secretary.
Each Agreement was amended to make certain clarifications and
changes respecting the provision of certain health and welfare
benefits and travel benefits, including following a Change of
Control as defined in the Agreement, and with respect to the
termination of such benefits in the event the Executive obtains
alternate employment with customary group health coverage and
customary rates under a group health insurance plan. The
Executives' other compensation arrangements continue under the
terms of their respective original Agreements, substantially as
such Agreements were in effect prior to the Amendment. The form
of Amendment and the form of Agreement are filed herewith as
Exhibit 10.52 and 10.53, respectively, and incorporated herein by
reference.
The Company has also entered into, effective as of November 19,
2010, the First Amendment to the Employee Retention Plan, dated as
of September 26, 2010 to change the date on which Officer Covered
Employees receive the initial 50% of their Retention Bonus, as
defined in the Retention Plan, from the Closing Date of the merger
to the first business day following the 90th day after the Closing
Date.
About AirTran Holdings
Headquartered in Orlando Florida, AirTran Holdings Inc. (NYSE:
AAI) -- http://www.airtran.com/-- through its wholly owned
subsidiary, AirTran Airways, Inc., operates scheduled airline
service throughout the United States and to selected international
locations.
The Company's balance sheet at Sept. 30, 2010, showed
$2.18 billion in total assets, $601.77 million in total current
liabilities, $16.21 million in long-term capital lease
obligations, $885.89 million in long-term debt, $109.09 million in
other liabilities, $19.38 million in deferred income taxes,
$29.61 million in derivative financial instruments, and
stockholders' equity of $515.18 million.
* * *
AirTran carries 'Caa1' corporate family and probability of default
ratings from Moody's Investors Service. It has 'B-' issuer credit
ratings from Standard & Poor's.
At the end of September 2010, Moody's said it has placed AirTran's
corporate family rating under review for possible upgrade, after
the announcement that Southwest Airlines, Inc., has entered into
a definitive agreement to acquire 100% of the outstanding common
stock of AirTran for cash and common stock aggregating
$1.4 billion. The companies indicated that a closing would not
occur until sometime in the first half of 2011.
AVAYA INC: Bank Debt Trades at 9% Off in Secondary Market
---------------------------------------------------------
Participations in a syndicated loan under which Avaya, Inc., is a
borrower traded in the secondary market at 90.56 cents-on-the-
dollar during the week ended Friday, November 26, 2010, according
to data compiled by Loan Pricing Corp. and reported in The Wall
Street Journal. This represents a drop of 0.92 percentage points
from the previous week, The Journal relates. The Company pays 275
basis points above LIBOR to borrow under the credit facility,
which matures on October 26, 2014. The loan is not rated by
Moody's and Standard & Poor's. The loan is one of the biggest
gainers and losers among 192 widely quoted syndicated loans with
five or more bids in secondary trading for the week ended Friday.
Avaya, Inc., based in Basking Ridge, N.J., is a supplier of
communications systems and software for enterprise customers.
Avaya carries a 'B3' corporate family rating from Moody's
Investors Service. In December 2009, Moody's downgraded Avaya's
corporate family rating to 'B3' from 'B2', citing that the
downgrade was driven by challenges presented by the acquisition
of Nortel's enterprise assets as well as the large amount of
additional debt incurred to finance the acquisition (around
$1 billion).
B GREEN: Posts $118,009 Q3 Loss; Q1 and Q2 Reports Amended
----------------------------------------------------------
B Green Innovations, Inc., filed its quarterly report on Form 10-
Q, reporting a net loss of $118,009 for the three months ended
September 30, 2010, compared with $389,614 for the same period
last year.
The Company reported net sales $43,913 for the three months ended
September 30, 2010, compared with net sales of $28,721 for the
same period last year.
The Company's balance sheet at September 30, 2010, showed
$1,407,924 total assets, $1,101,970 in liabilities, all current,
and $305,954 in stockholders' equity.
As of September 30, 2010, the Company had a net operating loss,
and negative cash flow from operations. These matters raise
substantial doubt about the Company's ability to continue as a
going concern. Therefore, recoverability of a major portion of
the recorded asset amounts shown in the accompanying balance
sheets is dependent upon continued operations of the Company,
which in turn, is dependent upon the Company's ability to raise
capital and generate positive cash flow from operations.
The management plans to increase the development, manufacture, and
distribution of "green" products to generate a positive cash flow.
However, these plans are dependent upon obtaining additional
capital. There can be no assurance that the Company will be able
to obtain the necessary capital, and achieve its growth
objectives. The financial statements do not include any
adjustments relating to the recoverability and classification of
recorded assets, or the amounts and classification of liabilities
that might be necessary in the event the Company cannot continue
in existence.
A full-text copy of the Company's Form 10-Q is available for free
at http://ResearchArchives.com/t/s?6ff0
Amended Quarterly Reports
The Company amended its quarterly report for the three months
ended March 31, 2010. The amended report incorporates the Segment
Data footnote and reverses accrued dividends which have not been
declared. No other change has been made. A copy of the Form 10-Q
for the three months ended March 31, 2010 is available for free
at http://ResearchArchives.com/t/s?6ff1
The Company amended its quarterly report for the three months
ended June 30, 2010. The amended report incorporates the Segment
Data footnote and reverses accrued dividends which have not been
declared. No other change has been made. A cop of the Form 10-Q
for the three months ended June 30, 2010 is available for free
at http://ResearchArchives.com/t/s?6ff2
About B Green Innovations
Matawan, N.J.-based B Green Innovations, Inc. (OTC BB: BGNN)
-- http://www.bgreeninnovations.com/-- is dedicated to
becoming a "green" technology company, focused on acquiring and
identifying promising technologies that address environmental
issues. The first technology will be used to create new products
from recycled tire rubber.
Rosenberg, Rich, Berman, Baker and Company, in Somerset, N.J.,
expressed substantial doubt about the Company's ability to
continue as a going concern after auditing the Company's financial
statements for the year ended December 31, 2009. The independent
auditors noted that the Company had a net loss, a negative cash
flow from operations, as well as negative working capital.
BERNARD MADOFF: Bankruptcy Trustee Files 40 Clawback Suits
----------------------------------------------------------
Irving H. Picard, the SIPA Trustee for the liquidation of Bernard
L. Madoff Investment Securities LLC disclosed that he filed a
total of 40 lawsuits; 22 of which were filed against relatives of
Bernard Madoff and his wife, Ruth Alpern Madoff -- including his
sister and nephew, her sister, and in-laws -- and 18 of which were
filed against former employees of BLMIS and certain of their
relatives, and other related entities.
Through the lawsuits, filed in the United States Bankruptcy Court
for the Southern District of New York by Mr. Picard's law firm,
Baker & Hostetler LLP, the Trustee seeks to recapture
approximately $69 million, which the Trustee alleges are funds
deposited by BLMIS customers, then diverted from BLMIS's
investment advisory business and, ultimately, fraudulently
transferred to Madoff family members and BLMIS employees. Funds
recovered as a result of these actions will be added to the BLMIS
Customer Fund, for equitable distribution among eligible customers
of the Madoff Ponzi scheme.
"The complaints filed today are a continuation of our recovery
efforts against the Madoff relatives and employees who were
closest to the center of the fraud and who were, in many cases,
among those who benefited most from the Ponzi scheme," said Mr.
Picard. "When added to the previously filed actions against
Madoff's immediate family and other business associates, the
aggregate recoveries sought from this group total almost one-third
of a billion dollars."
Among the complaints filed today are lawsuits against Sondra M.
Wiener, Bernard Madoff's sister, and her husband Marvin. The
complaint against Sondra Wiener alleges that she enjoyed special
privileges and profited for decades from the Ponzi scheme. The
Trustee further alleges that from the late 1980s through the early
1990s, Ms. Weiner received a guaranteed annual return of at least
20 percent as well as a $1 million loan from BLMIS which she never
repaid. Lawsuits were also filed today against Sondra Wiener's
son Charles Wiener, and Charles's wife Carolyn. Charles Wiener
acted as a BLMIS company executive and was intimately familiar
with the operations of BLMIS.
Joan and Robert Roman, Ruth Madoff's sister and brother-in-law,
are also named in the filings today.
The defendants named in the 40 complaints filed collectively held
66 different accounts with BLMIS, through which approximately $30
million were allegedly diverted to Madoff and Alpern family
accounts and related entities, and approximately $39 million were
diverted to the accounts held by employees, their families and
related entities.
"We have been in touch with each defendant and their counsel,
seeking a prompt settlement of these claims and an out-of-court
resolution," said Mr. Picard. "However, as these attempts have
not reached a satisfactory conclusion, we are moving ahead with
litigation."
Previously filed complaints included Bernard Madoff's brother,
sister-in-law, and his two sons, as well as other close Madoff
family members and senior employees who allegedly actively
participated in the fraud.
* * *
The Wall Street Journal's Michael Rothfeld reports that , in the
news release his aides sent after 10 p.m. Friday night, Mr. Picard
said the lawsuits were brought those "who were closest to the
center of the fraud and who were, in many cases, among those who
benefited most from the Ponzi scheme." The Journal notes those
ties were unclear from some of the complaints the trustee filed.
The Journal relates some of those complaints alleged only that the
people being sued were former Madoff customers who had withdrawn
more money from the firm than they had invested in principal. The
"net winners" consider themselves victims as well in that they
believed based on their account statements that they had more
money than they actually did.
As reported by the Troubled Company Reporter on November 25, 2010,
Mr. Picard sued UBS AG in U.S. Bankruptcy Court in New York
alleging 23 counts of financial fraud and misconduct. Mr. Picard
seeks to recover at least $2 billion for equitable distribution to
Mr. Madoff's victims with valid claims, with an exact amount to be
determined at trial. David J. Sheehan, Esq., a partner at Baker &
Hostetler LLP and counsel for Mr. Picard, said UBS AG and its
affiliate entities enable Mr. Madoff's Ponzi scheme through
numerous international feeder funds.
About Bernard L. Madoff
Bernard L. Madoff Investment Securities LLC and Bernard L. Madoff
orchestrated the largest Ponzi scheme in history, with losses
topping US$50 billion.
On December 15, 2008, the Honorable Louis A. Stanton of the U.S.
District Court for the Southern District of New York granted the
application of the Securities Investor Protection Corporation for
a decree adjudicating that the customers of BLMIS are in need of
the protection afforded by the Securities Investor Protection Act
of 1970. The District Court's Protective Order (i) appointed
Irving H. Picard, Esq., as trustee for the liquidation of BLMIS,
(ii) appointed Baker & Hostetler LLP as his counsel, and (iii)
removed the SIPA Liquidation proceeding to the Bankruptcy Court
(Bankr. S.D.N.Y. Adv. Pro. No. 08-01789) (Lifland, J.). Mr.
Picard has retained AlixPartners LLP as claims agent.
On April 13, 2009, former BLMIS clients filed an involuntary
Chapter 7 bankruptcy petition against Bernard Madoff (Bankr.
S.D.N.Y. 09-11893). The case is before Hon. Burton Lifland. The
petitioning creditors -- Blumenthal & Associates Florida General
Partnership, Martin Rappaport Charitable Remainder Unitrust,
Martin Rappaport, Marc Cherno, and Steven Morganstern -- assert
US$64 million in claims against Mr. Madoff based on the balances
contained in the last statements they got from BLMIS.
On April 14, 2009, Grant Thornton UK LLP as receiver placed Madoff
Securities International Limited in London under bankruptcy
protection pursuant to Chapter 15 of the U.S. Bankruptcy Code
(Bankr. S.D. Fla. 09-16751).
The Chapter 15 case was later transferred to Manhattan. In June
2009, Judge Lifland approved the consolidation of the Madoff SIPA
proceedings and the bankruptcy case.
Judge Denny Chin of the U.S. District Court for the Southern
District of New York on June 29, 2009, sentenced Mr. Madoff to
150 years of life imprisonment for defrauding investors in United
States v. Madoff, No. 09-CR-213 (S.D.N.Y.)
As of October 29, 2010, a total of US$5.69 billion in claims by
investors has been allowed, with US$741.2 million to be paid by
the Securities Investor Protection Corp. Investors are expected
to receive additional distributions from money recovered by Mr.
Picard.
BEVERLY HILLS: Voluntary Chapter 11 Case Summary
------------------------------------------------
Debtor: Beverly Hills Suites LLC
15 Carriage Road
Great Neck, NY 11021
Bankruptcy Case No.: 10-79169
Chapter 11 Petition Date: November 24, 2010
Court: United States Bankruptcy Court
Eastern District of New York (Central Islip)
Judge: Dorothy Eisenberg
Debtor's Counsel: James O. Guy, Esq.
49 Spice Mill Boulevard
Clifton Park, NY 12065
Tel: (518) 320-7136
Fax: (518) 320-7136
E-mail: jguylaw@gmail.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
The Debtor did not file a list of its largest unsecured creditors
together with its petition.
The petition was signed by Sharok Jacobi, managing member.
BIOPACK ENVIRONMENTAL: Has $379,977 Net Loss for Sept. 30 Quarter
-----------------------------------------------------------------
Biopack Environmental Solutions Inc. filed its quarterly report on
Form 10-Q, reporting a net loss of $379,977 for the three months
ended September 30, 2010, compared with a net loss of $331,656 for
the same period last year.
The Company reported revenues of $101,896 for the three months
ended September 30, 2010, compared with revenues of $204,965 for
the same period last year.
The Company's balance sheet at September 30, 2010, showed
$2,723,576 in total assets, $2,704,537 in total current
liabilities, $310,000 in total long-term liabilities, and a
$290,961 stockholders' deficit.
The Company had a loss for the nine-month period ended
September 30, 2010 of $623,047 and, on September 30, 2010 it had
an accumulated deficit of $5,514,980 and a working capital deficit
of $2,175,865. These conditions raise substantial doubt as to the
Company's ability to continue as a going concern.
According to the Company's latest annual report, the Company made
a net profit for the year ended December 31, 2009 of $867,547 and,
on December 31, 2009, it had an accumulated deficit of $4,891,933
and a working capital deficit of $2,250,368. "These conditions
exist which raise substantial doubt about the company's ability to
continue as a going concern unless it is able to generate
sufficient cash flows to meet its obligations and sustain its
operations. Those conditions raise substantial doubt about its
ability to continue as a going concern," the Company's independent
auditors, Gruber & Company said, following the Company's 2009
results.
In the Form 10-Q, the Company said it anticipates that it will
continue to incur operating expenses that will only partially be
offset by sales revenues. On September 30, 2010, the Company had
cash and cash equivalents of $149,945. The Company's average
operating expenses is $75,000 per month. The Company estimates
that its operating expenses over the next twelve months will be
approximately $900,000. The Company is uncertain these expenses
can be offset by our sales revenues.
As the Company cannot assure a lender that its operation will
become profitable, it will probably find it difficult to raise
debt financing from traditional lending sources. The Company has
traditionally raised its operating capital from sales of equity
and, more recently, convertible debt securities but there can be
no assurance that it will be able to continue to do so. If the
Company cannot raise the money that it needs in order to continue
to operate, the Company may be forced to delay, scale back or even
eliminate some or all of its activities. If any of these were to
occur, the Company's business could fail. These circumstances
raise substantial doubt about the Company's ability to continue as
a going concern. Although the Company's consolidated financial
statements raise substantial doubt about its ability to continue
as a going concern, they do not include any adjustments relating
to recoverability and classification of recorded assets, or the
amounts or classifications of liabilities that might be necessary
in the event the Company cannot continue in existence.
Concentration of credit risk is limited to accounts receivable and
is subject to the financial condition of major customers. The
Company does not require collateral or other security to support
accounts receivable. The Company conducts periodic reviews of its
clients' financial condition and customers' payment practices to
minimize collection risk on accounts receivable.
The future of the Company is dependent upon its attaining
profitable operations and raising the capital it will require in
order to achieve profitable operations through the issuance of
equity securities, borrowings or a combination thereof.
A full-text copy of the Company's Form 10-Q is available for free
at http://ResearchArchives.com/t/s?6ff4
About Biopack Environmental
Kowloon, Hong Kong-based Biopack Environmental Solutions Inc.
(OTC BB: BPAC) -- http://www.biopackenvironmental.com/-- was
incorporated on August 28, 2000, in the State of Nevada under the
name "Quadric Acquisitions". The Company develops, manufactures,
distributes and markets bio-degradable food containers and
disposable industrial packaging for consumer products. The
Company supplies its biodegradable food containers and industrial
packaging products to multinational corporations, supermarket
chains and restaurants located across North America, Europe and
Asia. The Company manufactures its products in its own factory,
known as Biopark, which is located in Jiangmen City in the PRC.
BLACK RAVEN: Incurs $835,000 Net Loss in Third Quarter
------------------------------------------------------
Black Raven Energy Inc. filed its quarterly report on Form 10-Q,
reporting a net loss of $835,000 on $114,000 of total revenue for
the three months ended Sept. 30, 2010, compared with a net loss of
$1.24 million on $97,000 of total revenue for the same period a
year ago.
The Company's balance sheet at Sept. 30, 2010, showed
$12.54 million in total assets, $20.62 million in total
liabilities, and a stockholders' deficit of $8.08 million.
A full-text copy of the quarterly report on Form 10-Q is available
for free at http://ResearchArchives.com/t/s?6fd4
About Black Raven
Denver, Colo.-based Black Raven Energy, Inc., formerly known as
PRB Energy, Inc., currently operates as an independent energy
company engaged in the acquisition, exploitation, development and
production of natural gas and oil in the Rocky Mountain Region of
the United States. On February 2, 2009, in connection with its
emergence from bankruptcy, PRB Energy changed its corporate name
to Black Raven Energy, Inc.
On March 5, 2008, PRB Energy, Inc. and its subsidiaries filed
voluntary petitions for relief under Chapter 11 of the Bankruptcy
Code in the U.S. Bankruptcy Court for the District of Colorado.
On January 16, 2009, the Bankruptcy Court entered an order
confirming PRB Energy reorganization plan. The Plan became
effective February 2, 2009.
As reported in the Troubled Company Reporter on April 14, 2010,
Deloitte & Touche LLP, in Denver, expressed substantial doubt
about Black Raven's ability to continue as a going concern,
following its 2009 results. The independent auditors noted of the
Company's recurring losses from operations and a stockholders'
deficit.
CANWEST GLOBAL: Post-Filing Claim Procedures Now In Effect
----------------------------------------------------------
On July 19, 2010, as reported in the Troubled Company Reporter,
the Affected Creditors of Canwest Media Inc. and certain of its
subsidiaries voted in favour of approval of the restated
consolidated plan of compromise, arrangement and reorganization
pursuant to the Companies Creditors' Arrangement Act and the
Canada Business Corporations Act. On July 28, 2010, the Court
issued an Order sanctioning the Plan. The Plan Implementation
Date occurred on October 27, 2010. On July 28, 2010, the Court
also approved a Post-Filing Claims Procedure Order establishing a
claims procedure for the identification and quantification of
certain post-filing claims against the CMI Entities.
The Post-Filing Claims Procedure Commencement Date (as defined in
the Post-Filing Claims Procedure Order) is November 26, 2010.
Every person asserting a Post-Filing Claim (as defined in the
Post-Filing Claims Procedure Order) against one or more of the CMI
Entities must deliver a Proof of Claim to the Monitor so that it
is received by the Monitor no later than the Post-Filing Claims
Bar Date or December 26, 2010. Any creditor who does not deliver
a Proof of Claim in respect of a Post-Filing Claim by the Post-
Filing Claims Bar Date shall be forever barred from making or
enforcing the Post-Filing Claim, including against the CMI
Entities and the Plan Implementation Fund, and any such Post-
Filing Claim shall be forever extinguished and all such creditors
shall be deemed to have fully and finally released and discharged
all such Post-Filing Claims (as such terms are defined in the
Post-Filing Claims Procedure Order).
Copies of the Order and documents relating to this process on the
Monitor's Web site at http://cfcanada.fticonsulting.com/cmi
About Canwest Global
Canwest Global Communications Corp. (TSX: CGS and CGS.A) --
http://www.canwest.com/-- an international media company, is
Canada's largest media company. In addition to owning the Global
Television Network, Canwest is Canada's largest publisher of
English language daily newspapers and owns, operates and holds
substantial interests in conventional television, out-of-home
advertising, specialty cable channels, web sites and radio
stations and networks in Canada, New Zealand, Australia, Turkey,
Indonesia, Singapore, the United Kingdom and the United States.
On October 6, 2009, Canwest Global, Canwest Media Inc., Canwest
Television Limited Partnership (including Global Television,
MovieTime, DejaView and Fox Sports World), The National Post
Company and certain subsidiaries voluntarily entered into, and
successfully obtained an Order from the Ontario Superior Court of
Justice (Commercial Division) commencing proceedings under the
Companies' Creditors Arrangement Act. The CMI Entities'
commencement of these proceedings was undertaken in furtherance of
a proposed recapitalization transaction that is supported by over
70% of holders of the 8% senior subordinated notes issued by CMI.
On the same day, FTI Consulting Canada Inc., the Court-appointed
Monitor in the CCAA proceedings, sought protection in the United
States Bankruptcy Court under Chapter 15 of the United States
Bankruptcy Code (Bankr. S.D.N.Y. Lead Case No. 09-15994) for
certain of the entities involved in Canwest's television business
that filed for protection under the CCAA, including Canwest,
Canwest Media Inc. and Canwest Global Broadcasting
Inc./Radiodiffusion Canwest Global Inc. Judge Stuart M. Bernstein
presides over the Chapter 15 cases. Evan D. Flaschen, Esq., at
Bracewell & Giuliani LLP, in Hartford, Connecticut, serves as
Chapter 15 Petitioner's counsel. The Chapter 15 Debtors disclosed
estimated assets of $500 million to $1 billion and estimated debts
of $50 million to $100 million. In a regulatory filing with the
U.S. Securities and Exchange Commission, Canwest Media disclosed
C$4,847,020,000 in total assets and C$5,826,522,000 in total
liabilities at May 31, 2009.
CARIBBEAN PETROLEUM: Unit Files Schedules of Assets & Liabilities
-----------------------------------------------------------------
Caribbean Petroleum Refining L.P., a debtor-affiliate of Caribbean
Petroleum Corporation, filed with the U.S. Bankruptcy Court for
the District of Delaware its schedules of assets and liabilities,
disclosing:
Name of Schedule Assets Liabilities
---------------- ----------- -----------
A. Real Property N/A
B. Personal Property N/A
C. Property Claimed as
Exempt
D. Creditors Holding
Secured Claims $146,260,248
E. Creditors Holding
Unsecured Priority
Claims $672,623
F. Creditors Holding
Unsecured Non-priority
Claims $4,304,592
----------- -----------
TOTAL N/A $151,237,463
A full-text copy of the Schedules of Assets and Liabilities is
available for free at:
http://bankrupt.com/misc/CaribbeanPetroleum_SAL.pdf
San Juan, Puerto Rico-based Caribbean Petroleum Corporation, aka
CAPECO, owns and operates certain facilities in Bayomon, Puerto
Rico for the import, offloading, storage and distribution of
petroleum products. Cribbean Petroleum sought Chapter 11
protection (Bankr. D. Del. Case No. 10-12553) on August 12, 2010,
nearly 10 months after a massive explosion at its major
Puerto Rican fuel storage depot virtually shut down the
company's operations. The Debtor estimated assets of
$100 million to $500 million and debts of $500 million to
$1 billion as of the Petition Date.
Affiliates Caribbean Petroleum Refining, L.P., and Gulf Petroleum
Refining (Puerto Rico) Corporation filed separate Chapter 11
petitions on August 12, 2010.
John J. Rapisardi, Esq., George A. Davis, Esq., and Zachary A.
Smith, Esq. at Cadwalader, Wickersham & Taft LLP serve as lead
counsel to the Debtors, and Mark D. Collins, Esq., and Jason M.
Madron, Esq., at Richards, Layton & Finger, P.A., serve as local
counsel. The Debtors' financial advisor is FTI Consulting Inc.
The Debtors' chief restructuring officer is Kevin Lavin of FTI
Consulting Inc. Kurtzman Carson Consultants LLC serves as the
noticing, claims and balloting agent.
CARTHEW BAY: Posts C$370,400 Net Loss in September 30 Quarter
-------------------------------------------------------------
Carthew Bay Technologies Inc. filed with the U.S. Securities and
Exchange Commission on November 18, 2010, a current report on Form
6-K containing its results of operations and financial condition
for the three months ended September 30, 2010. The financial
statements are prepared in accordance with Canadian Generally
Accepted Accounting Principles ("GAAP").
The Company reported a net loss of C$370,367 for the three months
ended September 30, 2010, compared with a net loss of C$108,508
for the same period of 2009.
For the three month period ended September 30, 2009, the only
revenue was interest earned on the Debenture with Colorep Inc. of
C$98,766 and the expense reimbursement from Colorep Inc. of
$98,766, for total revenues of $197,532. The Company generated no
revenue in the three months ended September 30, 2010.
The Company's balance sheet at September 30, 2010, showed
C$3.18 million in total assets, C$799,876 in total liabilities,
and stockholders' equity C$2.40 million.
"The Company currently has no commercial operations and has no
assets other than cash and cash equivalents and investments, these
conditions raise substantial doubt about the ability of the
company to continue as a going concern," the Company said in the
filing.
A complete text of the Form 6-K is available for free at:
http://researcharchives.com/t/s?6fc4
Carthew Bay Technologies Inc. (OTC BB: CWBYF) does not have
significant operations. Prior to August 1, 2007, the Company
designed, developed, manufactured, and sold alkaline fuel cells
and alkaline fuel cell systems, and fuel cell and battery test
loads. It intends to develop and sell subsurface printing and
dyeing technology for decorating various textiles and other
consumer products. The Company was formerly known as Astris
Energi Inc. and changed its name to Carthew Bay Technologies Inc.
in August 2007. Carthew Bay Technologies was founded in 1983 and
is based in Toronto, Canada.
CHRYSLER LLC: Car Dealer's Suit Stays in New Mexico Court
---------------------------------------------------------
Paul J. Kelly, Jr., of the U.S. Court of Appeals for the Tenth
Circuit denies Chrysler Group LLC's motion to transfer QUALITY
JEEP CHRYSLER, INC., n/k/a QUALITY AUTOMOTIVE SALES AND SERVICE,
INC., Plaintiff, v. CHRYSLER GROUP, LLC, Defendant, and LARRY H.
MILLER CORPORATION-ALBUQUERQUE, d/b/a LARRY H. MILLER CHRYSLER
JEEP DODGE ALBUQUERQUE, Necessary Party Defendant, (D. N.M. case
no. 10-cv-00900), in the Eastern District of Michigan. Quality
Jeep Chrysler seeks the enforcement of an award issued in an
arbitration. The Defendant seeks transfer as Chrysler Group is
litigating "the same factual and legal issues" before the Eastern
District of Michigan. The Court of Appeals concludes that
transfer is unwarranted.
A copy of Judge Kelly's Memorandum Opinion and Order dated
November 16, 2010, is available at http://is.gd/hNJz4from
Leagle.com.
About Chrysler
Chrysler Group LLC, formed in 2009 from a global strategic
alliance with Fiat Group, produces Chrysler, Jeep(R), Dodge, Ram
Truck, Mopar(R) and Global Electric Motorcars (GEM) brand vehicles
and products. Headquartered in Auburn Hills, Michigan, Chrysler
Group LLC's product lineup features some of the world's most
recognizable vehicles, including the Chrysler 300, Jeep Wrangler
and Ram Truck. Fiat will contribute world-class technology,
platforms and powertrains for small- and medium-sized cars,
allowing Chrysler Group to offer an expanded product line
including environmentally friendly vehicles.
Chrysler LLC and 24 affiliates on April 30, 2009, sought Chapter
11 protection from creditors (Bankr. S.D.N.Y (Mega-case), Lead
Case No. 09-50002). Chrysler hired Jones Day, as lead counsel;
Togut Segal & Segal LLP, as conflicts counsel; Capstone Advisory
Group LLC, and Greenhill & Co. LLC, for financial advisory
services; and Epiq Bankruptcy Solutions LLC, as its claims agent.
Chrysler has changed its corporate name to Old CarCo following its
sale to a Fiat-owned company. As of December 31, 2008, Chrysler
had $39,336,000,000 in assets and $55,233,000,000 in debts.
Chrysler had $1.9 billion in cash at that time.
In connection with the bankruptcy filing, Chrysler reached an
agreement with Fiat SpA, the U.S. and Canadian governments and
other key constituents regarding a transaction under Section 363
of the Bankruptcy Code that would effect an alliance between
Chrysler and Italian automobile manufacturer Fiat. Under the
terms approved by the Bankruptcy Court, the company formerly known
as Chrysler LLC on June 10, 2009, formally sold substantially all
of its assets, without certain debts and liabilities, to a new
company that will operate as Chrysler Group LLC. Fiat has a 20%
equity interest in Chrysler Group.
Dow Jones reports that the U.S. and Canadian governments provided
Chrysler with $4.5 billion to finance its bankruptcy case. Those
loans are to be repaid with the proceeds of the bankruptcy
estate's liquidation.
CIRTRAN CORP: Posts $122,700 Net Loss in September 30 Quarter
-------------------------------------------------------------
CirTran Corporation filed its quarterly report on Form 10-Q,
reporting a net loss of $122,704 on $2.26 million of revenue for
the three months ended September 30, 2010, compared with a net
loss of $1.21 million on $2.69 million of revenue for the same
period last year.
The Company has an accumulated deficit of $40.01 million at
September 30, 2010.
The Company's balance sheet at September 30, 2010, showed
$15.69 million in total assets, $22.53 million in total
liabilities, and a stockholders' deficit of $6.83 million.
Hansen, Barnett & Maxwell, P.C., in Salt Lake City, expressed
substantial doubt about the Company's ability to continue as a
going concern, following the Company's 2009 results. The
independent auditors noted that the Company has an accumulated
deficit, has suffered losses from operations and has negative
working capital.
A full-text copy of the Form 10-Q is available for free at:
http://researcharchives.com/t/s?6fed
West Valley City, Utah-based CirTran Corporatiop (OTC BB: CIRC)
-- http://www.CirTran.com/-- markets and manufactures an energy
drink under the Playboy brand pursuant to a license agreement with
Playboy Enterprises, Inc. The Company also provides turnkey
manufacturing services and products using various high-tech
applications for leading electronics OEMs in the communications,
networking, peripherals, gaming, law enforcement, consumer
products, telecommunications, automotive, medical, and
semiconductor industries.
CLAIRE'S STORES: Bank Debt Trades at 12% Off in Secondary Market
----------------------------------------------------------------
Participations in a syndicated loan under which Claire's Stores,
Inc., is a borrower traded in the secondary market at 87.79 cents-
on-the-dollar during the week ended Friday, November 26, 2010,
according to data compiled by Loan Pricing Corp. and reported in
The Wall Street Journal. This represents a drop of 1.32
percentage points from the previous week, The Journal relates.
The Company pays 275 basis points above LIBOR to borrow under the
facility. The bank loan matures on May 29, 2014, and carries
Moody's Caa2 rating and Standard & Poor's B- rating. The loan is
one of the biggest gainers and losers among 192 widely quoted
syndicated loans with five or more bids in secondary trading for
the week ended Friday.
Claire's Stores, Inc. -- http://www.clairestores.com/-- operates
as a specialty retailer of fashion accessories and jewelry for
preteens and teenagers, as well as for young adults in North
America and internationally. It offers jewelry products that
comprise costume jewelry, earrings, and ear piercing services; and
accessories, including fashion accessories, hair ornaments,
handbags, and novelty items.
Based in Pembroke Pines, Florida, Claire's Stores operates under
two brands: Claire's(R), which operates worldwide and Icing(R),
which operates only in North America. As of January 31, 2009,
Claire's Stores, Inc., operated 2,969 stores in North America and
Europe. Claire's Stores, Inc., also operates through its
subsidiary, Claire's Nippon, Co., Ltd., 213 stores in Japan as a
50:50 joint venture with AEON, Co., Ltd. The Company also
franchises 198 stores in the Middle East, Turkey, Russia, South
Africa, Poland and Guatemala.
The Company's balance sheet at July 31, 2010, showed $2.76 billion
in total assets, $2.641 billion in total liabilities, and a
stockholders' deficit of $62.33 million
The Company incurred a net loss of $8.34 million in the three
months ended July 31, 2010, compared with a net loss of $3.73
million in the three months ended August 1, 2009.
CLIFTON STAR: Posts C$9.6 Million Net Loss in Fiscal 2010
---------------------------------------------------------
Clifton Star Resources, Inc., filed with the U.S. Securities and
Exchange Commission on November 18, 2010, a current report on
Form 6-K containing its audited financial statements for its
fiscal year ended June 30, 2010.
The Company reported a net loss of C$9.56 million for fiscal 2010,
compared with a net loss of C$2.00 million for fiscal 2009. The
Company did not report any revenue in both 2009 and 2008.
As of June 30, 2010, the Company has an accumulated deficit of
C$14.78 million.
The Company's balance sheet at June 30, 2010, showed
C$32.69 million in total assets, $2.39 million in total
liabilities, and stockholders' equity of $30.31 million.
"The Company has incurred losses since inception and the ability
of the Company to continue as a going concern depends upon its
ability to develop profitable operations and to continue to raise
adequate financing," the Company said in the filing.
"If the Company is not able to raise funds, it will not be able to
meet its obligations, which raises substantial doubt about the
Company's ability to continue as a going concern," according to
the Management Discussion And Analysis - Year Ended June 30, 2010.
Davidson & Company LLP, the auditor, notes that in the United
States, reporting standards for auditors require the addition of
an explanatory paragraph (following the opinion paragraph) when
the financial statements are affected by conditions and events
that cast substantial doubt on the Company's ability to continue
as a going concern, such as those described in Note 1 to the
financial statements. "Our report to the shareholders dated
October 18, 2010 is expressed in accordance with Canadian
reporting standards which do not permit a reference to such events
and conditions in the auditors' report when these are adequately
disclosed in the financial statements," the auditor said.
A copy of the audited consolidated financial statements
for the year ended June 30, 2010, is available at no charge at:
http://researcharchives.com/t/s?6fcf
A discussion and analysis of the Company's financial statements
for the year ended June 30, 2010, is available for free at:
http://researcharchives.com/t/s?6fd0
About Clifton Star
Based in Vancouver, Canada, Clifton Star Resources, Inc. (TSX-V:
CFO)(Frankfurt: C3T) -- http://www.cliftonstarresources.com/-- is
a junior mining company with options to earn a 100% undivided
interest in the Beattie, Donchester, Central Duparquet, Dumico and
Duquesne gold properties that yielded over one million ounces of
gold from the 1930's until the 1950's. Through these properties
Clifton Star controls a total of 8.4 km. of strike length along
the prolific Porcupine/Destor deformation zone extending from
Timmins, Ontario, to north of Val d'Or, Quebec. The Company is
also evaluating historical tailings of recoverable gold at
Beattie-Donchester as a source of near-term revenues.
COLONIAL BANCGROUP: Wants Access to Cash in BB&T Deposit Account
----------------------------------------------------------------
The Colonial BancGroup, Inc., asks the U.S. Bankruptcy Court for
the Middle District of Alabama to use cash in its operating
account at Branch Banking and Trust Company.
The Hon. Dwight H. Williams, Jr., will convene a final hearing on
December 14, 2010 at 10 a.m., to consider the Debtors' request to
use of cash in deposit account.
The Debtor relates that as of this filing, the balance in the
operating account is approximately $12.5 million. Federal Deposit
Insurance Corporation, as receiver for Colonial Bank, is the only
entity that has objected to the use of cash from the Debtor's bank
accounts.
The Debtor is aware of three entities that assert any security
interest in, lien upon or right of setoff with respect to any
property of the Debtor's estate, including the deposits. These
entities are:
a) The Revenue Department, which asserts a tax lien with
respect to the deposits and certain other property of the
Debtor's estate. The Revenue Department's assertion is
based on a notice of tax lien for income and excise taxes in
an aggregate principal amount exceeding $9,000,000.
b) BB&T, which asserts a security interest in the deposits
(excluding the Operating Account) in the aggregate amount of
$24,027,299.
c) The FDIC-Receiver, which asserts a right of offset with
respect to the deposits. The FDIC-Receiver asserts this
offset right in connection with a priority claim in the
Debtor's Chapter 11 case in the approximate amount of
$900,000,000 (which claim has been denied and is the subject
of an appeal) and other contingent and unliquidated claims,
which is the subject of a pending objection by Debtor.
Given the pending issues in the case and the contemplated time
periods for liquidation of assets and adjudication or settlement
of the major claims asserted against the estate, the Debtor and
the Official Committee of Unsecured Creditors will need funds
under the Bank Deposit Orders and Non-Deposit Cash Collateral
Order to properly conduct the case. The Debtor will use the money
to pay the operating expenses and the fees and expenses of
professionals to the extent payable under applicable orders of the
Court.
The Debtor submits that, to the extent the FDIC-Receiver and the
Revenue Department have a lien upon, interest in or right of
offset with respect to the Operating Account, they will be
adequately protected by the use of cash in the Operating Account
for the purpose of allowing the Debtor to orchestrate an orderly
wind down of its business, collection and disposition of its
assets, and resolution of claims against it.
About The Colonial BancGroup
Headquartered in Montgomery, Alabama, The Colonial BancGroup,
Inc., (NYSE: CNB) owned Colonial Bank, N.A, its banking
subsidiary. Colonial Bank -- http://www.colonialbank.com/--
operated 354 branches in Florida, Alabama, Georgia, Nevada and
Texas with over $26 billion in assets. On August 14, 2009,
Colonial Bank was seized by regulators and the Federal Deposit
Insurance Corporation was named receiver. The FDIC sold most of
the assets to Branch Banking and Trust, Winston-Salem, North
Carolina. BB&T acquired $22 billion in assets and assumed
$20 billion in deposits of the Bank.
The Colonial BancGroup filed for Chapter 11 bankruptcy protection
(Bankr. M.D. Ala. Case No. 09-32303) on August 25, 2009. W. Clark
Watson, Esq., at Balch & Bingham LLP, and Rufus T. Dorsey IV,
Esq., at Parker Hudson Rainer & Dobbs LLP, assist the Debtor. The
Debtor disclosed $45 million in total assets and $380 million in
total liabilities as of the Petition Date.
COMSTOCK MINING: CEO Presents Report at Merriman's Investor Summit
------------------------------------------------------------------
Corrado DeGasperis, president and chief executive officer of
Comstock Mining Inc., presented at Merriman Capital's 7th annual
Investor Summit on November 16, 2010.
Mr. DeGasperis said the Company has successfully completed the
restructuring and recapitaliztion of its balance sheet and has
obtained quity funding of its business plan.
In November 2009, Comstock tapped Moelis & Company as strategic
financial advisor; in March 2010, it commenced its Spring Drill
Program; in April 2010, its board appointed a new president & CEO;
in May, shareholders overwhelmingly voted in favor of a 200:1
stock split; and in August 2010, debt holders agreed to exchange
alll senior secured debt for equity. He added that in October
this year, the Company raised $35.75 million of equity capital
that fully funds its business plan.
Mr. DeGasperis also said that the Comapny has expanded its mineral
resource nearly 60% since May 2010.
A full-text copy of the presentation is available for free
at http://ResearchArchives.com/t/s?6fd3
About Comstock Mining
Virginia City, Nev.-based Comstock Mining Inc. is a Nevada-based,
gold and silver mining company with extensive, contiguous property
in the historic Comstock district. The Company began acquiring
properties in the Comstock in 2003. Since then, the Company has
consolidated a substantial portion of the Comstock district,
secured permits, built an infrastructure and brought the
exploration project into test mining production. The Company
continues acquiring additional properties in the Comstock
district, expanding its footprint and creating opportunities for
exploration and mining. The goal of the Company's strategic plan
is to deliver stockholder value by validating qualified resources
(measured and indicated) and reserves (probable and proven) of
3,250,000 gold equivalent ounces by 2013, and commencing
commercial mining and processing operations by 2011, with annual
production rates of 20,000 gold equivalent ounces.
The Company's balance sheet at September 30, 2010, showed
$5.6 million in total assets, $46.6 million in total liabilities,
and a stockholders' deficit of $41.0 million.
As reported in the Troubled Company Reporter on April 15, 2010,
Jewett, Schwartz, Wolfe & Associates expressed substantial doubt
about Goldspring, Inc.'s ability to continue as a going concern,
following the Company's 2009 results. The independent auditors
noted that the Company has operating and liquidity concerns and
has incurred historical net losses approximating $55.0 million as
of December 31, 2009. The Company also used cash in operating
activities of $3.6 million in 2009.
CORD BLOOD: Incurs $1.88 Million Net Loss in September 30 Quarter
-----------------------------------------------------------------
Cord Blood America Inc. filed its quarterly report on Form 10-Q,
reporting a net loss of $1.88 million on $958,449 of revenue for
the three months ended Sept. 30, 2010, compared with a net loss of
$2.30 million on $838,238 of revenue for the same period a year
ago.
The Company's balance sheet at Sept. 30, 2010, showed
$6.99 million in total assets, $6.81 million in total liabilities,
all current, and stockholders' equity of 177,706.
A full-text copy of the quarterly report on Form 10-Q is available
for free at http://ResearchArchives.com/t/s?6fd8
About Cord Blood America
Based in Las Vegas, Nevada, Cord Blood America, Inc., is primarily
a holding company whose subsidiaries include Cord Partners, Inc.,
CorCell Co. Inc., CorCell Ltd.; CBA Professional Services, Inc.
D/B/A BodyCells, Inc.; CBA Properties, Inc.; and Career Channel
Inc, D/B/A Rainmakers International. Cord specializes in
providing private cord blood stem cell preservation services to
families. BodyCells is a developmental stage company and intends
to be in the business of collecting, processing and preserving
peripheral blood and adipose tissue stem cells allowing
individuals to privately preserve their stem cells for potential
future use in stem cell therapy. Properties was formed to hold
the corporate trademarks and other intellectual property of CBAI.
Rain specializes in creating direct response television and radio
advertising campaigns, including media placement and commercial
production.
In its March 30, 2010 report, Rose, Snyder & Jacobs, in Encino,
California, said the Company's recurring operating losses,
continued cash burn, and insufficient working capital and
accumulated deficit at December 31, 2009, raise substantial doubt
about the Company's ability to continue as a going concern.
CORUS BANKSHARES: Disclosure Statement Hearing Set for Dec. 16
--------------------------------------------------------------
Corus Bankshares, Inc., delivered its chapter 11 plan and a
disclosure statement explaining the liquidating plan to the
Bankruptcy Court on Nov. 18, 2010. The Honorable Pamela S. Holis
will convene a hearing at 11:00 a.m. on Dec. 16, 2010, to consider
whether the disclosure statement prepared by the debtors contains
adequate information to allow them to make informed decisions
about whether to vote to accept or reject the plan.
The Debtor projects that unsecured creditors and holders of TOPrS
will recover something between 4.5% and 47.6% of the face amount
of their claims if its liquidating plan takes effect. The plan
proposes that on its Effective Date, all of the Debtor's assets
will be transferred to and vest in New Corus. The Plan provides
for the appointment of Andrew Scruton of FTI Consulting, Inc., as
the Plan Administrator and U.S. Bank, N.A., Wilmington Trust
Company and Wells Fargo Bank, N.A. as the members of the Plan
Committee to oversee the activities of New Corus. The Plan
Administrator, supervised by the Plan Committee, will be
responsible for administering New Corus as set forth under the
Plan, including monetizing all of New Corus' assets, resolving all
Claims, pursuing all Causes of Action and distributing Net Free
Cash and Residual Net Free Cash to creditors.
Chicago, Illinois-based Corus Bankshares, Inc., is a bank holding
company. Its lone operating unit, Corus Bank, N.A., was closed
on September 11, 2009, by regulators, and the Federal Deposit
Insurance Corporation was named receiver. To protect the
depositors, the FDIC entered into a purchase and assumption
agreement with MB Financial Bank, National Association, Chicago,
Illinois, to assume all of the deposits of Corus Bank.
The Company sought Chapter 11 protection on (Bankr. N.D. Ill.
Case No. 10-26881) June 15, 2010. Kirkland & Ellis LLP's
James H.M. Sprayregen, Esq., David R. Seligman, Esq., and Jeffrey
W. Gettleman, Esq., serve as the Debtor's bankruptcy counsel.
Kinetic Advisors is the Company's restructuring advisor. Plante &
Moran is the Company's auditor and accountant. Kilpatrick
Stockton LLP's Todd Meyers, Esq., and Sameer Kapoor, Esq.; and
Neal Gerber & Eisenberg LLP's Mark Berkoff, Esq., Deborah Gutfeld,
Esq., and Nicholas M. Miller, Esq., represent the official
committee of unsecured creditors. As of June 15, 2010, the
Company disclosed $314,145,828 in assets and $532,938,418 in
liabilities.
CREDIT-BASED ASSET: Sec. 341 Creditors' Meeting Set for Jan. 19
---------------------------------------------------------------
The United States Trustee for Region 2 will convene a meeting of
Credit-Based Asset Servicing Securitization LLC and its debtor-
affiliates' creditors on Jan. 19, 2011, at 2:30 p.m. The meeting
will be held at Office of the United States Trustee at 80 Broad
Street in Manhattan.
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.
About C-Bass
Credit-Based Asset Servicing and Securitization LLC is a
subprime mortgage investor based in New York City. C-Bass is
a joint venture, owned in part by units of mortgage insurers
MGIC Investment Corp. and Radian Group Inc.
C-Bass and seven affiliates sought Chapter 11 protection
(Bankr. S.D.N.Y. Case No. 10-16040) on Nov. 12, 2010. C-Bass
disclosed $23.7 million in assets and $2.16 billion in
liabilities in its Schedules of Assets and Liabilities.
The Debtors' liabilities include $195.8 million of secured
debt.
Peter S. Partee, Esq., Richard P. Norton, Esq., Robert A. Rich,
Esq., and Scott Howard Bernstein, at Hunton & Williams LLP
represent the Debtors. Donlin, Recano & Company is the claims
and noticing agent.
The affiliates that filed separate Chapter 11 petitions are
C-BASS CBO Holding LLC, C-BASS Credit Corp., C-BASS Investment
Management LLC, NIM I LLC, Pledged Property II LLC, Starfish
Management Group LLC, and Sunfish Management Group LLC.
DANAOS CORP: Reports $978,000 Net Income in Third Quarter
---------------------------------------------------------
Danaos Corporation filed its quarterly report on Form 10-Q,
reporting net income of $978,000 for the three months ended
September 30, 2010, compared with net income of $16,372,000 for
the same period a year ago.
The Company's balance sheet at September 30, 2010, showed
$3,522,601,000 in total assets, $3,200,102,000 in total
liabilities, and $322,499,000 in stockholders' equity.
Operating revenue increased 18.5% to $94.6 million in the three
months ended September 30, 2010, from $79.8 million in the three
months ended September 30, 2009. The increase was primarily a
result of the addition to the Company's fleet of six 6,500 TEU
containerships, the CMA CGM Musset, the CMA CGM Nerval, the YM
Mandate, the CMA CGM Rabelais, the CMA CGM Racine, and the YM
Maturity, on March 12, 2010, May 17, 2010, May 19, 2010, July 2,
2010, August 16, 2010 and August 18, 2010, respectively, and two
3,400 TEU containerships, the Hanjin Buenos Aires and the Hanjin
Santos, on May 27, 2010 and July 6, 2010, respectively, which
collectively contributed revenues of $18.4 million during the
three months ended September 30, 2010. Moreover, one 6,500 TEU
containership, the CMA CGM Moliere, which was added to the
Company's fleet on September 28, 2009, contributed incremental
revenues of $3.1 million during the three months ended September
30, 2010, compared to the same period in 2009. These revenues
were offset in part by the sale of one 1,704 TEU containership,
the MSC Eagle, on January 22, 2010, which had contributed revenues
of $1.0 million for the three months ended September 30, 2009.
The Company also had a further decrease in revenues of
$5.7 million during the three months ended September 30, 2010,
mainly attributable to re-chartering certain vessels at reduced
charter rates, as well as reduced charter hire, in relation to
vessels laid up by the Company's charterers, representing
operating expenses not being incurred during the lay-up period.
Going Concern Doubt
As reported in the Troubled Company Reporter on June 22, 2010,
PricewaterhouseCoopers S.A., in Athens, Greece, 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 Company noted of the
Company's inability to comply with financial covenants under
its current debt agreements as of December 31, 2009, and its
negative working capital deficit.
According to the Form 10-Q, "As of December 31, 2009, the Company
was in breach of various covenants in its credit facilities, for
some of which it had obtained waivers and for others it had not.
The waivers the Company obtained were for a period through October
1, 2010. Furthermore, as of September 30, 2010, there are further
breaches for which the Company has not obtained waivers. In
addition, although the Company was in compliance with the
covenants in its credit facility with KEXIM, and has obtained
waivers of non-compliance with certain other covenants under other
credit facilities, under the cross default provisions of its
credit facilities the lenders could require immediate repayment of
the related outstanding debt. Even though none of the lenders
declared an event of default under the loan agreements, these
breaches constituted defaults and potential events of default and,
together with the cross default provisions in the various loan
agreements, could result in the lenders requiring immediate
repayment of all of the loans. During 2009, the Company's lenders
agreed to waive, and not to exercise their right to demand
repayment of any amounts due under certain loan agreements as a
result of, the December 31, 2008 and June 30, 2009 covenant
breaches under certain of its loan agreements, and any future
breaches of the covenants, through October 1, 2010. These waiver
agreements expired on October 1, 2010, when the original covenants
come back in force. The Company has deemed it is probable that it
may not be able to comply with the original covenants at
measurement dates that are within the next twelve months. In
addition, the cross default provisions in the Company's loan
agreements and breaches existing under its credit facilities as of
September 30, 2010 and December 31, 2009, as well as potential
defaults and events of default under loan agreements with waivers
expired on October 1, 2010, could result in events of default
under all of the Company's affected debt and the acceleration of
such debt by its lenders. In this respect, the Company
reclassified its long-term debt of $2.5 billion and $2.3 billion
as of September 30, 2010 and December 31, 2009 as current debt.
The Company continues to pay loan installments and accumulated or
accrued interest as they fall due under the existing credit
facilities. The conditions and events described above raise
substantial doubt about the Company's ability to continue as a
going concern."
The Company has entered into a commitment letter for an agreement
that will supersede, amend and supplement the terms of each of its
existing credit facilities (other than its credit facilities with
KEXIM and KEXIM Fortis) and provide for, among other things,
revised amortization schedules, interest rates, financial
covenants, events of defaults, guarantee and security packages, as
well as New Credit Facilities available for its currently non-
financed newbuildings. Subject to the terms of the Bank Agreement
and under the New Credit Facilities of $426.0 million, the lenders
will continue to provide the Company's existing credit facilities,
will waive covenant breaches or defaults under its existing credit
facilities, as well as amend covenants under such existing credit
facilities in accordance with the Bank Agreement. The Bank
Agreement is conditioned upon the Company's entry into the Hyundai
Samho Vendor Financing of $190.0 million and the newbuilding
cancellation agreement in relation to three 6,500 TEU vessels, the
HN N-216, the HN N-217 and the HN N-218, as well as a commitment
letter for the new Citi-CEXIM Credit Facility of $203.4 million
and the receipt of $200 million in proceeds from equity issuances,
including an investment by the Company's Chief Executive Officer
(which was completed on August 12, 2010, as discussed in Note 14
Stockholders' Equity). In addition, as of October 31, 2010, the
Company had approximately $121.0 million of undrawn funds under
its existing credit facilities, as well as available cash and cash
equivalents.
A full-text copy of the Company's Form 10-Q is available for free
at http://ResearchArchives.com/t/s?6fe9
About Danaos Corporation
Headquartered in Piraeus, Greece, Danaos Corporation (NYSE: DAC)
-- http://danaos.com/-- is an international owner of
containerships, chartering its vessels to many of the world's
largest liner companies. The Company operates through a number of
subsidiaries incorporated in Liberia and Cyprus. As of May 31,
2010, the Company had a fleet of 45 containerships aggregating
193,629 TEUs, making the Company among the largest containership
charter owners in the world, based on total TEU capacity.
DEEP DOWN: Posts $3.34 Million Net Loss in Sept. 30 Quarter
------------------------------------------------------------
Deep Down Inc. filed a Form 10-Q with the Securities and Exchange
Commission, reporting a net loss of $3.36 million after a $4.5
million non-cash impairment of goodwill, on revenues of $11.4
million for three months ended Sept. 30, 2010, compared with a net
loss of $2.09 million on revenues of $8.4 million during the same
quarter last year.
Minus the non-cash impairment of goodwill of $4.5 million, the
Company would have posted net income of $1.1 million for the third
quarter of 2010.
The Company said in a press release that the 36% increase in
revenues in the third quarter of 2010 was due primarily to higher
utilization of equipment, ROVs and personnel, increased equipment
and tooling rentals, greater demand for engineered subsea projects
and increased manufacture of products for deepwater projects. The
higher demand is attributable to the increased demand for its
products and services primarily in Brazil and West Africa and
higher equipment and personnel utilization and increased rentals
in the Gulf of Mexico.
Gross profit was $4.7 million for the third quarter 2010, an
increase of 121% over the same period of the prior year,
reflecting an overall increase in the gross profit margin from 26%
to 41%. The increase in gross profit and gross profit margin was
due to the increased revenues described above and to the larger
percentage of service rather than product revenue during the same
period last year.
Adjusted EBITDA for the third quarter 2010 was $2.5 million
compared to negative $660 thousand for the same period last year.
The dramatic improvement was driven primarily by the increase in
gross profit and lower SG&A expenses.
Working Capital
The Company's balance sheet at Sept. 30, 2010, showed
$49.31 million in total assets, $14.72 million in total
liabilities, and stockholders' equity of $34.58 million.
The Company's cash balance was $3.6 million at September 30, 2010
compared to $0.9 million at December 31, 2009.
The Company's working capital declined by $1.7 million to negative
$554,000 at September 30, 2010 from $1.2 million at December 31,
2009 primarily as a result of reclassifying $2.5 million of its
long-term debt to current liabilities. All of the debt from one
of the Company's lenders in the amount of $3.2 million is due
April 15, 2011. As of September 30, 2010, the Company was in
compliance with all financial covenants associated with this debt.
The Company is currently in discussions with several lenders who
have expressed interest in refinancing the Company's debt.
Ronald E. Smith, Chief Executive Officer stated, "The industry has
gone through some very difficult times the past eighteen months,
however it is now showing signs of strengthening. Our third
quarter was very positive, showing significant growth in revenues,
along with improved margins and reduced expenses. The Company
would have reported net income in excess of $1.1 million this
quarter except for a $4.5 million goodwill write-down. Our cash
flow continues to strengthen as well, as can be seen by a $3.1
million improvement in Adjusted EBITDA in the third quarter this
year as compared to third quarter last year. We expect business
to continue to improve over the next several quarters."
A full-text copy of the earnings release is available for free
at http://ResearchArchives.com/t/s?6fd1
A full-text copy of the quarterly report on Form 10- Q is
available for free at http://ResearchArchives.com/t/s?6fd2
About Deep Down
Deep Down, Inc. -- http://www.deepdowncorp.com/-- is an oilfield
services company serving the worldwide offshore exploration and
production industry. Deep Down's services include distribution
system installation support and engineering services, umbilical
terminations, loose-tube steel flying leads, distributed and drill
riser buoyancy, ROVs and tooling, marine vessel automation,
control, and ballast systems. The Company's primary focus is on
more complex deepwater and ultra-deepwater oil production
distribution system support services and technologies, used
between the platform and the wellhead.
DELPHI CORP: DPH Says ATEL Admin. Claims Fully Resolved
-------------------------------------------------------
On behalf of DPH Holdings Inc., John Wm. Butler, Jr., Esq.,
at Skadden, Arps, Slate, Meagher & Flom LLP, in Chicago,
Illinois, argues that any claims of ATEL Leasing Corporation that
may have arose before October 7, 2009, have been fully released
pursuant to a stipulation. He explains that to resolve ATEL's
objection to the July 10, 2009 Plan-Related Assumption and
Assignment Notice, ATEL and the Reorganized Debtors entered into
a stipulation, which entitles ATEL a $13,699 cure amount and a
$21,750 allowed administrative claim. Under the stipulation,
ATEL also agrees to release any "claim . . . or liability of
every kind and nature whatsoever" that it may have had against
the Debtors that arose before October 7, 2009.
ATEL's other assertions in its motion for payment were resolved
as part of the assumption and assignment process under the
Modified Plan and the resolution of the Assumption and Assignment
Objection as evidenced by the ATEL Stipulation. Accordingly, the
Reorganized Debtors ask the Court to (i) disallow and expunge
Claim Nos. 18427 and 6990; and (ii) render ATEL's Motion moot.
In response, Peter S. Russ, Esq., at Buchanan Ingersoll & Rooney
PC, in New York -- peter.russ@bipc.com -- counsel to ATEL,
clarifies that the Claims were not released pursuant to the ATEL
Stipulation. He tells the Court that a sufficiency hearing is
not the proper vehicle to address the Reorganized Debtors'
Objection. He asserts that adjudication of the Claims requires
an evidentiary hearing. "Each of the parties in this dispute is
advancing two separate interpretations of the scope of the
release provision of the ATEL Stipulation, which requires an
evidentiary hearing," Mr. Russ explains.
If the Court, however, considers the ATEL Stipulation in
connection with the Reorganized Debtors' Objection, ATEL should
be entitled to present evidence as to why the ATEL Stipulation
does not constitute a release or waiver of the Claims, Mr. Russ
maintains.
Counsel to the Reorganized Debtors, Mr. Butler insists that the
release in the ATEL Stipulation is clear. ATEL released all
claims relating to the ATEL Cure Proposal or Assumption and
Assignment Objection, he points out. ATEL also released all
claims "which the ATEL Releasing Parties have, ever had, or
hereafter will have against the Debtors." The parties did
contemplate a global release of all claims which arose before the
date of the ATEL Stipulation, as reflected by the carve-out in
the ATEL Stipulation for any claims arising after October 7,
2009, Mr. Butler adds.
The Court has already interpreted a substantially similar release
provision in these Chapter 11 cases, and thus the law of the case
supports the Reorganized Debtors' position that the unambiguous
terms of the release in the ATEL Stipulation effectively releases
the Claims, Mr. Butler asserts.
Reorganized Debtors Object
to Continental AG Claims
Meanwhile, the Reorganized Debtors ask the Court to disallow and
expunge Continental AG's claims for these reasons:
(i) Twelve of the Claims are exact duplicates of other claims:
Duplicate
Claim No. Claim No.
--------- ----------
19037 19093
19092 19161
19097 19159
19727 19773
19728 19775
19729 19778
19730 19776
19731 19772
19732 19780
19733 19777
19734 19774
19736 19779
(ii) Claim Nos. 19094 and 19120 assert invoices against Delphi
DO Brasil, which is not a debtor in these Chapter 11
cases.
Reorganized Debtors Respond to Heraeus Entities
The Reorganized Debtors are entitled to collect a $488,660
receivable Heraeus Precious Metals owes DAS LLC through the
claims objection procedures, counsel to the Reorganized Debtors,
Mr. Butler insists. He stresses that although the Receivable is
technically due to DAS LLC rather than the Delphi Entities that
were listed on the Heraeus Entities' proofs of claim, the Heraeus
Entities cannot rely on this technicality now when they
themselves listed the other Delphi entities in the proofs of
claim to assert the secured status of the Claims on account of
their purported setoff rights from the Receivable.
Mr. Butler also reminds the Court that before the statute of
limitations passed to commence an action to collect the
Receivable, the Debtors objected to the Claims, thus creating a
contested matter with respect to all of the matters raised in the
Claims, including the validity and amount of the Receivable. At
that time, Rule 3007 of the Federal Rules of Bankruptcy Procedure
provided that a claim objection could include a request for
affirmative relief, and that the request would automatically
transform the objection into an adversary proceeding. Rule 3007
was then amended to preclude a claim objection from containing a
demand for relief of a kind ordinarily sought by separate
adversary proceeding. Applying amended Rule 3007(b) to the
pending objection would be unjust, because it would deprive the
Reorganized Debtors of rights they possessed at the time the
objection to the Claims was filed, which objection was adjourned
pursuant to the Court's claims procedures, Mr. Butler maintains.
The Heraeus Entities are:
(a) Heraeus Precious Metals Management LLC;
(b) Heraeus, Inc.;
(c) Circuit Metals Division aka Heraeus Cermalloy, Inc. and
Heraeus Inc. Cermalloy Division; and
(d) Heraeus Metal Processing, Inc.
About Delphi Corp.
Based in Troy, Michigan, Delphi Corporation --
http://www.delphi.com/-- is a global supplier of electronics and
technologies for automotive, commercial vehicle and other market
segments. Delphi operates major technical centers, manufacturing
sites and customer support facilities in 30 countries.
The Company filed for Chapter 11 protection on October 8, 2005
(Bankr. S.D.N.Y. Lead Case No. 05-44481). John Wm. Butler Jr.,
Esq., John K. Lyons, Esq., and Ron E. Meisler, Esq., at Skadden,
Arps, Slate, Meagher & Flom LLP, represented the Debtors in their
restructuring efforts. Robert J. Rosenberg, Esq., Mitchell A.
Seider, Esq., and Mark A. Broude, Esq., at Latham & Watkins LLP,
represented the Official Committee of Unsecured Creditors. As of
June 30, 2008, the Debtors' balance sheet showed US$9,162,000,000
in total assets and US$23,742,000,000 in total debts.
The Court confirmed Delphi's plan on January 25, 2008. The Plan
was not consummated after a group led by Appaloosa Management,
L.P., backed out from their proposal to provide US$2,550,000,000
in equity financing to Delphi. At the end of July 2009, Delphi
obtained confirmation of a revised plan, build upon a sale of the
assets to a entity formed by some of the lenders who provided
$4 billion of debtor-in-possession financing, and General Motors
Company.
On October 6, 2009, Delphi Corp.'s Chapter 11 plan of
reorganization became effective. A Master Disposition Agreement
executed among Delphi Corporation, Motors Liquidation Company,
General Motors Company, GM Components Holdings LLC, and DIP Holdco
3, LLC, divides Delphi's business among three separate parties --
DPH Holdings LLC, GM Components, and DIP Holdco 3.
Delphi emerged from Chapter 11 as DPH Holdings. DPH Holdings will
remain responsible for the post-Effective Date administration and
eventual closing of the Chapter 11 cases as well as the
disposition of certain retained assets and payment of certain
retained liabilities as provided under the Modified Plan.
Bankruptcy Creditors' Service, Inc., publishes Delphi Bankruptcy
News. The newsletter tracks the Chapter 11 proceedings of Delphi
Corp. and its debtor-affiliates. (http://bankrupt.com/newsstand/
or 215/945-7000)
DELPHI CORP: DPH Says JCI Should Pursue Claims Process
------------------------------------------------------
As reported in the Troubled Company Reporter on November 1, 2010,
Johnson Controls Inc. is asking the Bankruptcy Court to:
(i) require DPH Holdings Corp. to comply with a transfer
agreement in connection with the Delphi Corp.'s sale of a
battery manufacturing plant located in New Brunswick, New
Jersey, to JCI by:
-- revising its estimate of the cost of the Property's
remediation to reflect $8 million as the actual
anticipated remediation cost;
-- filing other higher estimate with NJDEP;
-- increasing the financial assurance provided to NJDEP to
$8 million through the Trust; or
(ii) in the alternative, compel DPH Holdings to provide
adequate assurance of financial ability to pay JCI's
indemnification claims.
Reorganized Debtors Object,
Johnson Controls Talks Back
Counsel to DPH Holdings, Ron E. Meisler, Esq., at
Skadden, Arps, Slate, Meagher & Flom LLP, in Chicago, Illinois,
asserts that Johnson Controls, Inc. and Johnson Controls Battery
Group, Inc.'s Motion to Compel is an improper attempt to
circumvent the claims procedures in these Chapter 11 cases. The
administrative claims are the subject of pending contested
matters governed by the claim procedures that have been in place
since December 2006 and have been used to resolve thousands of
claims in these Chapter 11 cases, Mr. Meisler stresses.
Johnson Controls previously sought relief based on DPH-DAS LLC's
alleged breaches of environmental and indemnification provisions
of a transfer agreement pursuant to which DPH-DAS LLC's
predecessor sold a battery facility to Johnson Controls, Inc.
The same allegations at the heart of Johnson Controls'
administrative claims, which seek more than $10 million in
indemnification payments, arise from the same alleged breaches of
the same provisions of the same transfer agreement, Mr. Meisler
reminds the Court.
More importantly, Mr. Meisler contends, Johnson Controls has put
forward three requests for relief that do not make sense in for
these reasons:
(1) Johnson Controls seeks an order compelling DPH-DAS to
perform its alleged obligations under the transfer
agreement, but under New York law, the remedy of specific
performance is not available when there is an adequate
legal remedy as those of indemnification payments to
which Johnson Controls claims it is entitled.
(2) Johnson Controls' demand for adequate assurance of future
performance also fails under New York law, because the
right to make that demand is confined to contracts for the
sale of goods covered by the New York Uniform Commercial
Code and other limited circumstances that are not present
here.
(3) Johnson Controls seeks permission to conduct an
examination relating to its administrative claims under
Rule 2004 of the Federal Rules of Bankruptcy Procedure,
despite the existence of the pending contested matters
concerning those claims. The third request also violates
the "well recognized rule that once an adversary
proceeding or contested matter is commenced, discovery
should be pursued only under the Federal Rules of Civil
Procedure and not by Rule 2004."
In response, counsel to Johnson Controls, Kathleen L. Matsoukas,
Esq., at Barnes & Thornburg LLP, in Chicago, Illinois, asserts
that DPH Holdings mischaracterizes the Motion to Compel as an
attempt to adjudicate Johnson Controls' administrative claims.
Ms. Matsoukas clarifies that Johnson Controls filed the Motion to
Compel because Delphi violated the New Jersey Industrial Site
Recovery Act, as amended. Those violations, she asserts, deny
Johnson Controls any assurance that DPH Holdings intends to and
is capable of performing postpetition obligations it undertook in
2006, which include remediating the Site and indemnifying Johnson
Controls. Johnson Controls believes that the remediation of the
Facility will cost about $8 million, and that DPH Holdings should
set aside at least $8 million in the trust fund. The $8 million
to be deposited in the Trust Fund is not the same amount as the
Administrative Claims asserted by JCI, Ms. Matsuokas notes.
"There is really only one way that DPH Holdings can perform its
obligations to Johnson Controls: DPH must comply with ISRA," Ms.
Matsoukas insists. To do so, DPH must deposit $8 million into
the Trust Fund. That sum will financially assure compliance with
ISRA and prove that DPH can indemnify Johnson Controls if it
fails to comply with ISRA, she says. DPH Holdings, she adds,
must also resume the remediation of the Property in accordance
with a notice of violation dated November 4, 2010 served by the
New Jersey Department of Environmental Protection.
Ms. Matsoukas clarifies that Johnson Controls' Motion to Compel
only seeks compliance of statutory and contractual obligations
that Delphi Automotive Systems assumed when it sold the Battery
Facility.
New Jersey Agency Supports Johnson Controls,
Takes Back Notice of Violation
In a letter dated November 15, 2010, Paula T. Dow, Esq., attorney
general of New Jersey, asked the Court to compel DPH Holdings to
correct certain violations set forth in a Notice of Violation.
Specifically, the Department determined in the Notice of
Violation that Delphi failed to (i) submit the annual detailed
review of all remediation costs as required; and (ii) remediate
property not owned by the person conducting the remediation to
the applicable unrestricted use standard.
The Department has required DPH Holdings to carry out these
actions to correct those violations:
(1) Within 30 days after receipt of the Notice, submit a
review of all remediation costs incurred and to be
incurred to comply with the Remediation Agreement, on a
standard Remediation Cost Review Form available at New
Jersey's Web site;
(2) Remediate the site to the applicable unrestricted soil
remediation standard, unless the property owner's written
consent is obtained the institutional or engineering
controls; and
(3) Within 30 days after receipt of the Notice, submit
evidence that demonstrates the Remediation Funding Source
has been increased to the amount on the Remediation Cost
Review Form.
In a subsequent letter dated November 17, 2010, Ms. Dow tells the
Court that the Notice of Violation was issued in error. She
explains that although DPH Holdings had missed providing the
annual cost reviews for the years 2007 and 2008, a cost estimate
was submitted in January and May 2010 that provided the necessary
information back to the year 2006. The Notice of Violation,
thus, was issued in error and has since been rescinded by the
Department, Ms. Dow states.
Ms. Dow says the Department still wants to ensure that DPH
Holdings adjusts the remediation funding source according to the
cost reviews and complies fully with all the provisions of the
ISRA and the regulations promulgated as cited in the November 15
letter. The Department will be providing notice of comments on
or before November 30, 2010, to the annual cost review that was
submitted.
Reorganized Debtors Still Object
Mr. Meisler, counsel to the Reorganized Debtors, asserts that
Johnson Controls does not address in any meaningful way the
Reorganized Debtors' argument that the Motion to Compel is an
improper attempt to litigate the Claims outside of the claims
procedures. Instead, he notes, Johnson Controls continues to
focus on the unsupported theory that DPH Holdings has violated
ISRA and related regulations.
Mr. Meisler maintains that DPH Holdings is in compliance with its
obligations under ISRA and related regulations, including its
obligation to:
(1) submit the review required under Section 7:26C-5.10 of
the New Jersey Administrative Code; and
(2) establish and maintain a remediation funding source, and
fund the trust in an amount at least equal to its
remediation cost of $1.825 million.
About Delphi Corp.
Based in Troy, Michigan, Delphi Corporation --
http://www.delphi.com/-- is a global supplier of electronics and
technologies for automotive, commercial vehicle and other market
segments. Delphi operates major technical centers, manufacturing
sites and customer support facilities in 30 countries.
The Company filed for Chapter 11 protection on October 8, 2005
(Bankr. S.D.N.Y. Lead Case No. 05-44481). John Wm. Butler Jr.,
Esq., John K. Lyons, Esq., and Ron E. Meisler, Esq., at Skadden,
Arps, Slate, Meagher & Flom LLP, represented the Debtors in their
restructuring efforts. Robert J. Rosenberg, Esq., Mitchell A.
Seider, Esq., and Mark A. Broude, Esq., at Latham & Watkins LLP,
represented the Official Committee of Unsecured Creditors. As of
June 30, 2008, the Debtors' balance sheet showed US$9,162,000,000
in total assets and US$23,742,000,000 in total debts.
The Court confirmed Delphi's plan on January 25, 2008. The Plan
was not consummated after a group led by Appaloosa Management,
L.P., backed out from their proposal to provide US$2,550,000,000
in equity financing to Delphi. At the end of July 2009, Delphi
obtained confirmation of a revised plan, build upon a sale of the
assets to a entity formed by some of the lenders who provided
$4 billion of debtor-in-possession financing, and General Motors
Company.
On October 6, 2009, Delphi Corp.'s Chapter 11 plan of
reorganization became effective. A Master Disposition Agreement
executed among Delphi Corporation, Motors Liquidation Company,
General Motors Company, GM Components Holdings LLC, and DIP Holdco
3, LLC, divides Delphi's business among three separate parties --
DPH Holdings LLC, GM Components, and DIP Holdco 3.
Delphi emerged from Chapter 11 as DPH Holdings. DPH Holdings will
remain responsible for the post-Effective Date administration and
eventual closing of the Chapter 11 cases as well as the
disposition of certain retained assets and payment of certain
retained liabilities as provided under the Modified Plan.
Bankruptcy Creditors' Service, Inc., publishes Delphi Bankruptcy
News. The newsletter tracks the Chapter 11 proceedings of Delphi
Corp. and its debtor-affiliates. (http://bankrupt.com/newsstand/
or 215/945-7000)
DELPHI CORP: Consents to D. Armstrong Filing Late Claim
-------------------------------------------------------
David Armstrong asked Bankruptcy Judge Robert Drain to deem his
administrative expense claim as timely filed pursuant to Rule
9006(b) of the Federal Rules of Bankruptcy Procedure.
Mr. Armstrong suffered a work-related injury in January 2007. He
continued to work for Delphi until he became disabled by that
injury in May 2007. When he tried to return to work after
undergoing treatment for his injury, he learned that he was no
longer an employee of Delphi. He signed a union grievance form
on October 16, 2007.
In March 2010, Mr. Armstrong filed a complaint against Delphi in
the U.S. District Court for the Eastern District of Michigan,
asserting that he had been discharged by Delphi, or not hired by
the Delphi, in violation of a collective bargaining agreement and
Michigan law. Counsel for both parties has agreed to stay the
pending lawsuit to enable Mr. Armstrong to file a request with
the Bankruptcy Court. In October 2010, Mr. Armstrong filed his
request for an administrative expense claim.
Deborah Kovsky-Apap, Esq., at Pepper Hamilton LLP, in New York --
kovskyd@pepperlaw.com -- contends that cause exists to enlarge
Mr. Armstrong's time to file his administrative claim because he
was not served with notice of the claims bar date. She further
points out that if Mr. Armstrong's failure to act was the result
of neglect, that neglect was excusable because:
(1) he did not understand, and was never advised by Delphi,
that he was deemed a "creditor" of the Debtor; and
(2) Delphi never served notice of the claims bar date on him.
Ms. Apap assures Judge Drain that Mr. Armstrong's request will
have no impact on the Debtor's bankruptcy case as it has already
emerged from bankruptcy. More importantly, Ms. Apap adds, there
is no arguable prejudice to the Debtor because it has advised Mr.
Armstrong that it will not oppose Mr. Armstrong's request.
Reorganized Debtors Respond
Counsel to the Reorganized Debtors, John Wm. Butler, Jr., Esq.,
at Skadden, Arps, Slate, Meagher & Flop LLP, in Chicago,
Illinois, clarifies that the Reorganized Debtors agree not to
oppose the Late Claim Motion because Mr. Armstrong did not
receive adequate notice of the first Administrative Claims Bar
Date. The Reorganized Debtors, however, dispute the assertion
that Mr. Armstrong would satisfy the excusable neglect standard
because "Mr. Armstrong did not understand, and was never advised
by [DAS LLC] that he was deemed a 'creditor' of the Debtor."
The Reorganized Debtors also contest Mr. Armstrong's contention
that "there will be no impact on the [Reorganized Debtors']
bankruptcy proceedings" or that there is "no arguable prejudice"
to the Reorganized Debtors because the Reorganized Debtors have
agreed not to oppose the Motion.
Nevertheless, the Reorganized Debtors ask Judge Drain to:
(a) grant Mr. Armstrong leave to file the Claim;
(b) deeming their statement as an objection to the Claim on
the grounds that the Claim is not supported by the
Reorganized Debtors' books and records;
(c) automatically adjourn the Claim into the claims
objection procedures; and
(d) reserving their rights with respect to (i) all factual
allegations in the Late Claim Motion; and (ii) where the
claim should be liquidated, in the event the Late Claim
Motion is granted.
About Delphi Corp.
Based in Troy, Michigan, Delphi Corporation --
http://www.delphi.com/-- is a global supplier of electronics and
technologies for automotive, commercial vehicle and other market
segments. Delphi operates major technical centers, manufacturing
sites and customer support facilities in 30 countries.
The Company filed for Chapter 11 protection on October 8, 2005
(Bankr. S.D.N.Y. Lead Case No. 05-44481). John Wm. Butler Jr.,
Esq., John K. Lyons, Esq., and Ron E. Meisler, Esq., at Skadden,
Arps, Slate, Meagher & Flom LLP, represented the Debtors in their
restructuring efforts. Robert J. Rosenberg, Esq., Mitchell A.
Seider, Esq., and Mark A. Broude, Esq., at Latham & Watkins LLP,
represented the Official Committee of Unsecured Creditors. As of
June 30, 2008, the Debtors' balance sheet showed US$9,162,000,000
in total assets and US$23,742,000,000 in total debts.
The Court confirmed Delphi's plan on January 25, 2008. The Plan
was not consummated after a group led by Appaloosa Management,
L.P., backed out from their proposal to provide US$2,550,000,000
in equity financing to Delphi. At the end of July 2009, Delphi
obtained confirmation of a revised plan, build upon a sale of the
assets to a entity formed by some of the lenders who provided
$4 billion of debtor-in-possession financing, and General Motors
Company.
On October 6, 2009, Delphi Corp.'s Chapter 11 plan of
reorganization became effective. A Master Disposition Agreement
executed among Delphi Corporation, Motors Liquidation Company,
General Motors Company, GM Components Holdings LLC, and DIP Holdco
3, LLC, divides Delphi's business among three separate parties --
DPH Holdings LLC, GM Components, and DIP Holdco 3.
Delphi emerged from Chapter 11 as DPH Holdings. DPH Holdings will
remain responsible for the post-Effective Date administration and
eventual closing of the Chapter 11 cases as well as the
disposition of certain retained assets and payment of certain
retained liabilities as provided under the Modified Plan.
Bankruptcy Creditors' Service, Inc., publishes Delphi Bankruptcy
News. The newsletter tracks the Chapter 11 proceedings of Delphi
Corp. and its debtor-affiliates. (http://bankrupt.com/newsstand/
or 215/945-7000)
DEX MEDIA WEST: Bank Debt Trades at 11% Off in Secondary Market
---------------------------------------------------------------
Participations in a syndicated loan under which Dex Media West LLC
is a borrower traded in the secondary market at 89.40 cents-on-
the-dollar during the week ended Friday, November 26, 2010,
according to data compiled by Loan Pricing Corp. and reported in
The Wall Street Journal. This represents a drop of 3.10
percentage points from the previous week, The Journal relates.
The Company pays 450 basis points above LIBOR to borrow under the
facility, which matures on October 24, 2014. The debt is not
rated by Moody's and Standard & Poor's. The loan is one of the
biggest gainers and losers among 192 widely quoted syndicated
loans with five or more bids in secondary trading for the week
ended Friday.
About Dex Media West
Dex Media West LLC is a subsidiary of Dex Media West, Inc., and an
indirect wholly owned subsidiary of Dex Media, Inc. Dex Media is
a direct wholly owned subsidiary of R.H. Donnelley Corporation.
Dex Media West is the exclusive publisher of the official yellow
pages and white pages directories for Qwest Corporation, the local
exchange carrier of Qwest Communications International Inc., in
Arizona, Idaho, Montana, Oregon, Utah, Washington, and Wyoming.
R.H. Donnelley Corp. and 19 of its affiliates, including Dex Media
East LLC, Dex Media West LLC and Dex Media, Inc., filed for
Chapter 11 protection on May 28, 2009 (Bank. D. Del. Case No. 09-
11833 through 09-11852), after missing a $55 million interest
payment on its senior unsecured notes due April 15. James F.
Conlan, Esq., Larry J. Nyhan, Esq., Jeffrey C. Steen, Esq.,
Jeffrey E. Bjork, Esq., and Peter K. Booth, Esq., at Sidley Austin
LLP, in Chicago, Illinois represent the Debtors in their
restructuring efforts. Edmon L. Morton, Esq., and Robert S.
Brady, Esq., at Young, Conaway, Stargatt & Taylor LLP, in
Wilmington, Delaware, serve as the Debtors' local counsel. The
Debtors' financial advisor is Deloitte Financial Advisory Services
LLP while its investment banker is Lazard Freres & Co. LLC. The
Garden City Group, Inc., is claims and noticing agent.
DURATEK PRECAST: Wittler Suit Stayed Following Bankruptcy
---------------------------------------------------------
The Hon. Virginia Hernandez Covington rules that ANDREW WITTLER,
Plaintiff, v. DURATEK PRECAST TECHNOLOGIES, INC., Defendant (M.D.
Fla. Case No. 10-2462), is stayed following the defendant's
bankruptcy filing.
A copy of the Court's order is available at http://is.gd/hNL5c
from Leagle.com.
Duratek Precast Technologies Inc., formerly known as Duratek Wall
Corp., sought Chapter 11 protection from creditors in Tampa,
Florida (Bankr. M.D. Fla. Case No. 10-22876) on September 23,
2010. Duratek, maker of precast concrete wall systems and other
structures, estimated assets and liabilities each in the range of
$10 million to $50 million.
An affiliate, Duratek Precast Structures LLC, also filed for
Chapter 11 on September 23 (Bankr. M.D. Fla. Case No. 10-22880).
ENVIRONMENTAL SOLUTIONS: Posts $699,643 Net Loss in 3rd Quarter
---------------------------------------------------------------
Environmental Solutions Worldwide Inc., reported net loss of
$699,643 on $2,480,478 for three months ended September 30,
compared with net loss of $448,984 on $1,588,411 revenues for the
same period in 2009.
Following the Company's 2009 results, Deloite & Touche LLP, the
independent auditors, said, "The Company has suffered recurring
losses from operations and has a net capital deficiency that raise
substantial doubt about its ability to continue as a going
concern."
In the Form 10-Q, the Company noted that it has sustained
recurring operating losses. As of September 30, 2010, the Company
has an accumulated deficit of $40,068,515, cash and cash
equivalents of $660,700 and was in violation of certain financial
covenants with its secured lender for which a waiver was obtained.
The Company's wholly-owned subsidiary ESW Canada, Inc., received a
waiver of certain financial covenants under its Credit Agreement
with Canadian chartered bank, Canadian Imperial Bank of Commerce.
The Company owed CIBC $3,428,066 under the credit facility, as at
September 30. The waiver provided was only through November 19.
As of this date, the Company provided no update on its waiver.
At September 30, the Company's balance sheet showed total assets
of $9,811,268, total liabilities of $7,918,602, and stockholders'
equity of $1,892,666.
The Company reported net loss of $5,545,135 on $8,328,204 in
revenues for nine months ended September 30, 2010, compared with
net loss of $5,012,211 on $903,670 in revenues for the same period
in 2009.
The Company also disclosed that it will require additional
financing to fund its continuing operations. The Company is
seeking additional funds by way of equity or debt financing. The
Company's ability to continue as a going concern is dependent on
raising additional financing and achieving and maintaining a
profitable level of operations.
The Company cannot assure that the funding will be available on
terms attractive to it, or at all. Furthermore, any additional
financings may be dilutive to shareholders or may involve
restrictive covenants. The Company's failure to raise capital as
and when needed or at favorable terms could have a negative
impact on its financial condition and its ability to pursue
business strategies.
A full text copy of Form 10-Q is available for free
at http://ResearchArchives.com/t/s?6fba
About Environmental Solutions Worldwide
Headquartered in Concord, Ontario, Environmental Solutions
Worldwide Inc. (OTCBB: ESWW) through its wholly-owned subsidiaries
is engaged in the design, development, manufacturing and sales of
environmental technologies and testing services with its primary
focus on the international on-road and off-road diesel retrofit
market. ESW manufactures and markets a line of catalytic emission
control and enabling technologies for a number of applications.
FONAR CORP: Swings to $385,000 Profit in Q1 of Fiscal 2011
----------------------------------------------------------
FONAR Corporation reported that net income for the first quarter
of fiscal 2011 ending September 30, 2010 was $385,000 as compared
to a net loss of $1,741,000 for the quarter ending September 30,
2009.
Income from operations for the quarter ending September 30, 2010
was $435,000 as compared to a loss of $1,422,000 for the same
period one year earlier, ending September 30, 2009. FONAR has had
income from operations for three quarters in a row.
Total net revenues for the quarter ending September 30, 2010
increased 16% to $8.7 million as compared to the one-year earlier
to the quarter ending September 30, 2009, when net revenues were
$7.5 million.
The Company's balance sheet at Sept. 30, 2010, showed $21,988,000
in assets, $24,940,000 in current liabilities, $2,245,000 in long-
term liabilities, and a total shareholders' deficiency of
$5,197,000. Current assets were $15,256,000 as of Sept. 30.
Commenting on the results of the first quarter of fiscal 2011,
Raymond Damadian, M.D., president and chairman of FONAR said,
"We are delighted to be able to show rising income for the
first quarter of fiscal 2011. This has largely been done by
cutting costs. Important savings have been made by reducing our
Selling, General and Administrative expenses and our Research and
Development expenses. In fact, these two categories have been
reduced 31% when comparing the most recent fiscal quarter ending
September 30, 2010 with the first quarter of fiscal
2010 ending September 30, 2009."
"I am also pleased to announce that during the most recent fiscal
quarter, FONAR has installed its first UPRIGHT(R) Multi-Position
MRI in Africa and Australia making FONAR a true global participant
in the MRI world," added Dr. Damadian. We have installed 14 of
our nearly 150 FONAR UPRIGHT(R) Multi-Position(TM) MRI scanners
outside of the United States."
A full-text copy of the earnings release is available for free
at http://ResearchArchives.com/t/s?6fcd
A full-text copy of the quarterly report on Form 10-Q is available
for free at http://ResearchArchives.com/t/s?6fce
About Fonar Corporation
Melville, N.Y.-based Fonar Corporation (NasdaqCM: FONR)
-- http://www.Fonar.com/-- is a Delaware corporation which was
incorporated on July 17, 1978. The Company conducts its business
in two segments. The first, conducted directly through Fonar, is
referred to as the Company's medical equipment segment. The
second, conducted through the Company's wholly owned subsidiary
Health Management Corporation of America, is referred to as the
physician management and diagnostic services segment.
The medical equipment segment is engaged in the business of
designing, manufacturing, selling and servicing magnetic
resonance imaging, also referred to as "MRI" or "MR", scanners
which utilize MRI technology for the detection and diagnosis of
human disease.
Health Management Corporation of America provides management
services, administrative services, billing and collection
services, office space, equipment, repair, maintenance service and
clerical and other non-medical personnel to diagnostic imaging
centers.
Marcum, LLP, in New York, N.Y., expressed substantial doubt about
the Company's ability to continue as a going concern following the
Company's fiscal 2010 results. The independent auditors noted
that Company has suffered recurring losses from operations,
continues to generate negative cash flows from operating
activities, has negative working capital at June 30, 2010, and is
dependent on asset sales to fund its shortfall from operations.
FREESCALE SEMICONDUCTOR: Debt Trades at 6% Off in Secondary Market
------------------------------------------------------------------
Participations in a syndicated loan under which Freescale
Semiconductor, Inc., is a borrower traded in the secondary market
at 94.29 cents-on-the-dollar during the week ended Friday,
November 26, 2010, according to data compiled by Loan Pricing
Corp. and reported in The Wall Street Journal. This represents a
drop of 0.67 percentage points from the previous week, The Journal
relates. The Company pays 425 basis points above LIBOR to borrow
under the facility. The bank loan matures on December 1, 2016,
and carries Moody's B2 rating and Standard & Poor's B- rating.
The loan is one of the biggest gainers and losers among 192 widely
quoted syndicated loans with five or more bids in secondary
trading for the week ended Friday.
Freescale Semiconductor, Inc. -- http://www.freescale.com/-- once
Motorola's Semiconductor Products Sector, is one of the oldest and
most diverse makers of microchips in the world. It produces many
different kinds of chips for use in automobiles, computers,
industrial equipment, wireless communications and networking
equipment, and other applications. The company's global client
roster includes such blue-chip companies as Alcatel-Lucent, Bosch,
Cisco Systems, Fujitsu, Hewlett-Packard, QUALCOMM, and Siemens, as
well as former parent Motorola. Freescale nets about half of its
sales from the Asia/Pacific region. The Blackstone Group, The
Carlyle Group, Permira Advisers, and TPG Capital own the company.
Freescale Semiconductor Holdings I, Ltd. carries a 'CCC' issuer
default rating from Fitch Ratings.
Freescale carries a B-/Stable/-- corporate credit rating from
Standard & Poor's. "The rating on Freescale," said Standard &
Poor's credit analyst Lucy Patricola, "reflects S&P's expectation
that the company will continue on its current path to generate
over $800 million of EBITDA for 2010. S&P expects leverage to
remain high but free cash flow to be slightly positive, preserving
existing cash balances of $1 billion."
GAMETECH INT'L: Accountant Quits, Noted Weakness in Int. Controls
-----------------------------------------------------------------
On November 15, 2010, Grant Thornton LLP informed GameTech
International Inc. and the Company's audit committee of the board
of directors that it is resigning as the independent accountant of
the Company. The Company's Audit Committee of the board of
directors accepted the resignation of Grant Thornton on
November 17, 2010.
Grant Thornton's audit reports on the Company's financial
statements for the fiscal years ended November 1, 2009 and
November 2, 2008 did not contain an adverse opinion or a
disclaimer of opinion, nor were they qualified or modified as to
uncertainty, audit scope, or accounting principles.
During the fiscal years ended November 1, 2009 and November 2,
2008, and any subsequent interim period preceding the resignation
of Grant Thornton, and through the date of this filing, there have
been no disagreements between the Company and Grant Thornton on
any matter of accounting principles or practices, financial
statement disclosure, or auditing scope or procedures, which
disagreement, if not resolved to the satisfaction of Grant
Thornton would have caused it to make a reference to the subject
matter of the disagreement in connection with its reports.
Grant Thornton, in connection with its incomplete 2010 third
quarter review engagement, determined that a material weakness
existed in the Company's internal controls. Specifically, Grant
Thornton determined that the controls over the financial reporting
review process of the Company were ineffective and the Company did
not have the appropriate resources to prepare financial statements
in accordance with United States generally accepted accounting
principles. There was no disagreement between the Company and
Grant Thornton concerning the material weakness identified by
Grant Thornton during its 2010 third quarter review engagement,
the Company's Audit Committee discussed the material weakness with
Grant Thornton. The Company has implemented a plan to rectify the
material weakness identified by Grant Thornton during its 2010
third quarter review engagement. Other than indicated above,
there are no other reportable events.
On November 18, 2010, the Company's Audit Committee appointed
Piercy Bowler Taylor & Kern to review the Company's 2010 third
quarter interim financial statements for the three month period
ending August 1, 2010 and to audit the Company's consolidated
financial statements for the fiscal year ending October 31, 2010.
During the Company's two most recent fiscal years and the
subsequent interim period through the date of PBTK's appointment,
the Company:
i) did not consult with PBTK on the application of accounting
principles to a specified transaction, either completed or
proposed, or the type of audit opinion that might be
rendered on the Company's consolidated financial
statements within the meaning of Item 304(a)(2)(i) of
Regulation S-K; and
ii) did not consult with PBTK on any matter that was either
the subject of a disagreement, as the term is defined in
Item 304(a)(1)(iv) of Regulation S-K and the related
instruction to Item 304 of Regulation S-K, or a reportable
event, as that term is defined in Item 304(a)(1)(v) of
Regulation S-K.
The Company has authorized Grant Thornton to respond fully to the
inquiries of PBTK and has provided Grant Thornton with a copy of
the disclosure contained, which is available for free at:
http://ResearchArchives.com/t/s?6fcc
About GameTech International
Based in Reno, Nevada, GameTech develops and manufactures gaming
entertainment products and systems. GameTech holds a significant
position in the North American bingo market with its interactive
electronic bingo systems, portable and fixed-based gaming units,
and complete hall management modules. It also holds a significant
position in select North American VLT markets, primarily Montana,
Louisiana, and South Dakota, where it offers video lottery
terminals and related gaming equipment and software. It also
offers Class III slot machines and server-based gaming systems.
According to the Troubled Company Report on November 4, 2010, the
Company received a letter from the Lender stating that the
forbearance period under the Company's line of credit expired on
October 31, 2010. The letter further states that the Lender has
the immediate right to commence action against the Company,
enforce the payment of the note under the line of credit, commence
foreclosure proceedings under certain loan documents, and
otherwise enforce its rights and remedies against the Company.
While the Company continues to actively engage in discussions with
the Lender and is optimistic a resolution can be reached, there
can be no assurance that the Company will be able to further
extend the forbearance period, obtain waivers or reach a
satisfactory agreement with the Lender in a timely manner.
As of November 9, the Company has approximately $1.3 million
outstanding under the Line of Credit. The outstanding balance
under the Company's Line of Credit is subject to the non-default
rate of 4.25%.
GREEN ENDEAVORS: Issues 50,000 Shares of Preferred Stock
--------------------------------------------------------
On November 3, 2010, Green Endeavors Inc. authorized the issuance
of 16,666 shares of Series B Preferred Stock to Desert Vista
Capital LLC in exchange for $25,000 pursuant to the terms and
conditions of a stock purchase agreement.
On November 9, 2010, the Company authorized the issuance of 16,666
shares of Series B Preferred Stock to Desert Vista Capital LLC in
exchange for $25,000 pursuant to the terms and conditions of a
stock purchase agreement.
On November 9, 2010, the Company authorized the issuance of 16,666
shares of Series B Preferred Stock to Microcap Innovations LLC in
exchange for $25,000 pursuant to the terms and conditions of a
stock purchase agreement.
Copies of the stock purchase agreements with Desert Vista are
available for free at:
http://ResearchArchives.com/t/s?6fc9
http://ResearchArchives.com/t/s?6fca
A full-text copy of the stock purchase agreement with Microcap is
available for free at:
http://ResearchArchives.com/t/s?6fcb
Salt Lake City, Utah-based Green Endeavors, Inc., runs two hair
care salons that feature Aveda(TM) products for retail sale.
The Company's balance sheet at September 30, 2010, showed
$1.2 million in total assets, $4.3 million in total liabilities,
and a stockholders' deficit of $3.1 million.
GREENSHIFT CORP: Incurs $3 Million Net Loss in September 30 Qtr.
----------------------------------------------------------------
Greenshift Corporation filed its quarterly report on Form 10-Q,
reporting a net loss of $3.02 million on $1.72 million of revenue
for the three months ended Sept. 30, 2010, compared with a net
loss of $3.46 million on $0.88 million of revenue for the same
period a year ago.
The Company's balance sheet at Sept. 30, 2010, showed
$16.97 million in total assets, $86.35 million in total
liabilities, and a stockholders' deficit of $69.38 million.
Stockholders' deficit was $66.53 million at June 30, 2010.
A full-text copy of the quarterly report on Form 10-Q is available
for free at http://ResearchArchives.com/t/s?6fe0
About Greenshift Corporation
Headquartered in New York, GreenShift Corporation develops and
commercializes clean technologies designed to integrate into and
leverage established production and distribution infrastructure to
address the financial and environmental needs of its clients by
decreasing raw material needs, facilitating co-product reuse, and
reducing waste and emissions.
Rosenberg Rich Baker Berman & Company expressed substantial doubt
about the Company's ability to continue as a going concern,
following the Company's 2009 results. The independent auditors
noted that the Company has suffered losses from operations and has
a working capital deficiency as of December 31, 2009.
GUITAR CENTER: Bank Debt Trades at 9% Off in Secondary Market
-------------------------------------------------------------
Participations in a syndicated loan under which Guitar Center,
Inc., is a borrower traded in the secondary market at 91.02 cents-
on-the-dollar during the week ended Friday, November 26, 2010,
according to data compiled by Loan Pricing Corp. and reported in
The Wall Street Journal. This represents a drop of 0.64
percentage points from the previous week, The Journal relates.
The Company pays 350 basis points above LIBOR to borrow under the
facility. The bank loan matures on October 9, 2014, and carries
Moody's Caa1 rating and Standard & Poor's B- rating. The loan is
one of the biggest gainers and losers among 192 widely quoted
syndicated loans with five or more bids in secondary trading for
the week ended Friday.
Guitar Center, Inc., headquartered in Westlake Village, Calif., is
the largest musical instrument retailer with 312 stores and a
direct response segment, which operates its websites. It operates
three distinct musical retail business - Guitar Center (about 70%
of revenue), Music & Arts (about 7% of revenue), and Musician's
Friend (its direct response subsidiary with 24% of revenue).
Total revenue is about $2 billion.
Guitar Center carries 'Caa1' corporate family and probability of
default ratings from Moody's Investors Service. In December 2009,
Moody's said, "The Caa1 Corporate Family Rating reflects Guitar
Center's very weak credit metrics, particularly its interest
coverage, as a result of its very high level of debt."
HARRAH'S ENTERTAINMENT: HOC Bank Debt Trades at 103.33%
-------------------------------------------------------
Participations in a syndicated loan under which Harrah's Operating
Company, Inc., is a borrower traded in the secondary market at
103.33 cents-on-the-dollar during the week ended Friday, November
26, 2010, according to data compiled by Loan Pricing Corp. and
reported in The Wall Street Journal. This represents a drop of
0.60 percentage points from the previous week, The Journal
relates. The Company pays 750 basis points above LIBOR to borrow
under the facility. The bank loan matures on October 23, 2016,
and carries Moody's Caa1 rating and Standard & Poor's B rating.
The loan is one of the biggest gainers and losers among 192 widely
quoted syndicated loans with five or more bids in secondary
trading for the week ended Friday.
About Harrah's Entertainment
Las Vegas, Nevada-based Harrah's Entertainment, Inc. --
http://www.harrahs.com/-- through its wholly owned subsidiary,
Harrah's Operating Company, Inc., operates nearly 40 casinos
across the United States, primarily under the Harrah's(R),
Caesars(R) and Horseshoe(R) brand names; Harrah's also owns the
London Clubs International family of casinos and the World Series
of Poker(R). Private equity firms Apollo Global Management and
TPG Capital LP acquired Harrah's in January for $31 billion.
The Company's balance sheet at Sept. 30, 2010, showed
$29.28 billion in total assets, $28.22 billion in total
liabilities, and stockholders' equity of $1.06 billion.
Harrah's Entertainment reported a net loss of $164.8 million on
$2.29 billion of net revenues for the quarter ended Sept. 30,
2010, compared with a net loss of $1.71 billion on $2.29 billion
of net revenues for the same period a year ago.
Harrah's carries 'Caa3' corporate family and probability of
default ratings, with "positive outlook", from Moody's Investors
Service. It has 'B-' issuer credit ratings, with "stable"
outlook, from Standard & Poor's.
HELICOS BIOSCIENCES: Q3 Loss at $9MM; Add'l Capital Needed
----------------------------------------------------------
Helicos BioSciences Corporation recently filed a quarterly report
on Form 10-Q, reporting a net loss of $8,879,000 for the three
months ended September 30, 2010, compared with a net loss of
$6,947,000 for the same period a year ago.
The Company reported total revenue of $636,000 for the three
months ended September 30, 2010, compared with $1,113,000 for the
same period last year.
The Company's balance sheet at September 30, 2010, showed
$6,389,000 in total assets, $14,842,000 in total liabilities, and
a $8,453,000 stockholders' deficit.
PricewaterhouseCoopers LLP expressed substantial doubt about the
Company's ability to continue as a going concern following the
Company's results for full year 2009. The auditors noted that the
Company has incurred significant losses in each fiscal year since
its inception, including net losses attributable to common
stockholders of $45.7 million and $28.0 million in the years ended
December 31, 2008 and 2009, respectively. As of December 31,
2009, the Company had an accumulated deficit of $167.7 million.
A copy of the annual report on Form 10-K is available for free at:
http://ResearchArchives.com/t/s?6fe5
In the Form 10-Q, the Company disclosed that it "will require
significant additional capital to continue its operations."
The Company says it is implementing a new strategic focus and plan
to deploy its limited resources by focusing its intellectual
property monetization and concentrating its research and
development efforts in targeted areas designed to achieve tangible
proof-of-concept goals, which may enable the Company to seek
partnership opportunities with companies interested in next-
generation sequencing, or to pursue other funding and strategic
alternatives. The Company also said it launched an additional
technology licensing platform on October 14 as part of a new
business strategy.
A full-text copy of the Company's Form 10-Q is available for free
at http://ResearchArchives.com/t/s?6fe6
The Company filed the Form 10-Q on November 19 -- four days after
the due date. The Company attributed the short delay to the
additional time necessary to develop narrative information for
disclosure of certain subsequent events.
About Helicos BioSciences
Helicos BioSciences Corporation is a publicly traded life science
company headquartered in Cambridge, Massachusetts focused on
genetic analysis technologies for the research, drug discovery and
diagnostic markets. The firm's Helicos Genetic Analysis Platform
was the first DNA sequencing instrument to operate by imaging
individual DNA molecules. In May 2010 the company announced a 50%
layoff and a re-focusing on molecular diagnostics. Helicos was
co-founded in 2003 by life science entrepreneur Stanley Lapidus,
Stephen Quake, and Noubar Afeyan with investments from Atlas
Venture, Flagship Ventures, Highland Capital Partners, MPM
Capital, and Versant Ventures.
HERBST GAMING: Bank Debt Trades at 43% Off in Secondary Market
--------------------------------------------------------------
Participations in a syndicated loan under which Herbst Gaming,
Inc., is a borrower traded in the secondary market at 56.71 cents-
on-the-dollar during the week ended Friday, November 26, 2010,
according to data compiled by Loan Pricing Corp. and reported in
The Wall Street Journal. This represents a drop of 0.79
percentage points from the previous week, The Journal relates.
The Company pays 187.5 basis points above LIBOR to borrow under
the facility. The bank loan matures on December 8, 2013. Moody's
has withdrawn its rating, while Standard & Poor's does not assign
a rating, on the bank debt. The loan is one of the biggest
gainers and losers among 192 widely quoted syndicated loans with
five or more bids in secondary trading for the week ended Friday.
About Herbst Gaming
Headquartered in Reno, Nev., Herbst Gaming, Inc. --
http://www.herbstgaming.com/-- is a diversified gaming company.
The Company and its subsidiaries focus on two business lines, slot
route operations and casino operations. The Company's route
operations involves the exclusive installation and, as of
September 30, 2009, operation of around 6,300 slot machines in
non-casino locations, such as grocery stores, drug stores,
convenience stores, bars and restaurants. The casino operations
consist of 16 casinos located in Nevada, Iowa and Missouri.
The Company and 17 of its affiliates filed for Chapter 11
protection on March 22, 2009 (Bankr. D. Nev. Lead Case No. 09-
50752). Thomas H. Fell, Esq., and Gerald M. Gordon, Esq., at
Gordon Silver, represented the Debtors in their restructuring
effort. Herbst Gaming had $919.1 million in total assets and
debts of $1.57 billion as of the Chapter 11 filing. The
Bankruptcy Court issued an order on January 22, 2010, confirming
the company's amended joint plan of reorganization. The plan
became effective February 5, 2010.
HERCULES OFFSHORE: Bank Debt Trades at 7% Off in Secondary Market
-----------------------------------------------------------------
Participations in a syndicated loan under which Hercules Offshore,
Inc., is a borrower traded in the secondary market at 92.52 cents-
on-the-dollar during the week ended Friday, November 26, 2010,
according to data compiled by Loan Pricing Corp. and reported in
The Wall Street Journal. This represents a drop of 1.88
percentage points from the previous week, The Journal relates.
The Company pays 650 basis points above LIBOR to borrow under the
facility. The bank loan matures on July 11, 2013, and carries
Moody's Caa1 rating and Standard & Poor's B- rating. The loan is
one of the biggest gainers and losers among 192 widely quoted
syndicated loans with five or more bids in secondary trading for
the week ended Friday.
About Hercules Offshore
Hercules Offshore, Inc. (NASDAQ: HERO) --
http://www.herculesoffshore.com/-- provides shallow-water
drilling and marine services to the oil and natural gas
exploration and production industry in the United States, Gulf of
Mexico and internationally. The Company provides these services
to integrated energy companies, independent oil and natural gas
operators and national oil companies. The Company operates in six
business segments: Domestic Offshore, International Offshore,
Inland, Domestic Liftboats, International Liftboats and Delta
Towing.
The Troubled Company Reporter said on November 17, 2010, Moody's
Investors Service downgraded the Corporate Family Rating of
Hercules Offshore Inc. and the Probability of Default Rating to
Caa1 from B2. Moody's also downgraded Hercules' 10.5% senior
secured notes due 2017, its senior secured revolving credit
facility due 2012, and its senior secured term loan B due 2013,
all to Caa1 with LGD3, 45%. The outlook remains negative.
"The inability of Hercules to generate meaningful free cash flow
despite limited reinvestment in its aging fleet of rigs is cause
for concern," commented Stuart Miller, Moody's Senior Analyst.
"Without a significant de-leveraging of its balance sheet,
Hercules is following a path that could lead to financial hardship
at the first sign of a market softening." Hercules' Caa1 CFR
rating reflects its highly leveraged balance sheet and limited
ability to generate free cash flow. The Caa1 rating on the senior
secured notes reflects their pari passu secured position in
Hercules' capital structure relative to the senior secured credit
facilities.
HORSESHOE POINT: Case Summary & 9 Largest Unsecured Creditors
-------------------------------------------------------------
Debtor: Horseshoe Point, LLC
410 Severn Avenue, Suite B412
Annapolis, MD 21403
Bankruptcy Case No.: 10-36752
Chapter 11 Petition Date: November 24, 2010
Court: United States Bankruptcy Court
District of Maryland (Baltimore)
Judge: Nancy V. Alquist
Debtor's Counsel: Paul Sweeney, Esq.
LOGAN, YUMKAS, VIDMAR & SWEENEY LLC
2530 Riva Road, Suite 400
Annapolis, MD 21401
Tel: (443) 569-5972
Fax: (410) 571-2798
E-mail: psweeney@loganyumkas.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
A list of the Company's nine largest unsecured creditors
filed together with the petition is available for free
at http://bankrupt.com/misc/mdb10-36752.pdf
The petition was signed by Brian McCormick, managing member.
IBIO INC: JH Cohn Removes Going Concern Language in FY 2010 Report
------------------------------------------------------------------
iBio, Inc. filed on November 24, 2010, Amendment No. 1 to its
annual report on Form 10-K for the fiscal year ended June 30,
2010, to, among other things, include a revised audit opinion of
J.H. Cohn LLP, the Company's independent auditors, for the year
ended June 30, 2010, which has been amended to remove the
modifying language previously included that said that the
Company's net loss, negative cash flows from operating activities
for the year ended June 30, 2010, and accumulated deficit and
negative working capital as of June 30, 2010, raise substantial
doubt about the Company's ability to continue as a going concern.
"In November 2010 the Company completed a private offering of its
securities and received approximately $7,460,000 in net proceeds.
With this capital, the Company has sufficient cash to continue
operations through fiscal 2011," the Company said in the filing.
A full-text copy of the Form 10-K/A is available for free at:
http://researcharchives.com/t/s?6feb
About iBio Inc.
Newark, Del.-based iBio, Inc. (OTC BB: IBPM) --
http://www.ibioinc.com/-- is a biotechnology company focused on
commercializing its proprietary technology, the iBioLaunch(TM)
platform, for the production of biologics including vaccines and
therapeutic proteins. Vaccine candidates presently being advanced
on the Company's proprietary platform are applicable to newly
emerging strains of H1N1 swine-like influenza and H5N1 for avian
influenza.
INCOMING INC: Posts $3,397,118 Net Loss in August 31 Quarter
------------------------------------------------------------
Incoming, Inc., filed its quarterly report on Form 10-Q, reporting
a net loss of $3,358,795 for June 1, 2010 through Aug. 23, 2010,
and $38,323 post-merger for the period August 24 to August 31,
2010. This compares to a net loss of $67,181 for the same period
a year ago.
On August 23, 2010, the Company acquired an existing biodiesel
production facility in Lenoir, North Carolina, from North American
Bio-Energies, LLC.
The predecessor company, North American Bio-Energies, LLC,
reported net loss of $10,259 for the June 1, 2010, to August 23,
2010 period. The Predecessor reported net loss of $67,181 for the
three months ended August 31, 2009.
The Predecessor reported revenue of $338,116 for the June 1, 2010
to August 23, 2010 period, compared with revenue of $147,694 for
the three months ended August 31, 2009. The Successor reported
revenue of $3,267 for the June 1, 2010 to August 23, 2010 period
and revenue of $2,291 for the August 24, 2010 through August 31,
2010 period.
Incoming's balance sheet at August 31, 2010, showed $1,867,295 in
total assets, $1,150,104 in total liabilities, and $717,191 in
stockholders' equity.
As of August 31, 2010, the Company had a working capital
deficiency of $280,379, and had accumulated a deficit of
$3,807,764. Its ability to continue as a going concern is
dependent upon the ability of the Company to generate profitable
operations in the future and to obtain the necessary financing to
meet its obligations and repay its liabilities arising from normal
business operations when they come due. The outcome of these
matters cannot be predicted with any certainty at this time.
These factors raise substantial doubt that the company will be
able to continue as a going concern. The Company to date has
funded its initial operations through the issuance of capital
stock and 2,000,000 common stock options, loans from related
parties, and revenue generated in the normal course of business.
As of November 5, 2010, the Company has funded its initial
operations through the issuance of capital stock for cash and
loans from the former director and related parties. The
management plans to continue to provide for its capital needs by
the issuance of common stock and related party advances.
A full-text copy of the Company's Form 10-Q is available for free
at http://ResearchArchives.com/t/s?6fef
Headquartered in New York, Incoming, Inc. --
http://www.incominginc.com/-- is a renewable energy company
engaged in the production and distribution of biodiesel and
renewable fuels. The Company's current facility is located in
North Carolina and its acquisition plan targets production
facilities in Brazil's emerging green energy market.
INTEGRATED FREIGHT: Incurs $524,000 Net Loss in Sept. 30 Quarter
----------------------------------------------------------------
Integrated Freight Corporation filed its quarterly report on Form
10-Q, reporting a net loss of $524,430 on $8.67 million of revenue
for the three months ended Sept. 30, 2010, compared with a net
loss of $1.01 million on $4.68 million of revenue for the same
period a year ago.
The Company's balance sheet at Sept. 30, 2010, showed
$8.96 million in total assets, $11.91 million in total
liabilities, and a stockholder's deficit of $2.95 million.
A full-text copy of the quarterly report on Form 10-Q is available
for free at http://ResearchArchives.com/t/s?6fe7
About Integrated Freight
Integrated Freight Corporation, formerly Plagraphics, Inc., (OTC
BB: IFCR) -- http://www.integrated-freight.com/-- is a Sarasota,
Florida headquartered motor freight company providing long-haul,
regional and local service to its customers. The Company
specializes in dry freight, refrigerated freight and haz-waste
truckload services, operating primarily in well-established
traffic lanes in the upper mid-West, Texas, California and the
Atlantic seaboard. IFCR was formed for the purpose of acquiring
and consolidating operating motor freight companies.
On August 19, 2010, at a special stockholder's meeting the Company
approved a reverse stock split, a relocation of its State of
Incorporation to Florida and a change of its name to Integrated
Freight Corporation. The Company's name change and State of
Incorporation have been approved and are effective as of
August 18, 2010. The reverse stock split has been approved but is
not effective as of the date of this filing.
* * *
Sherb & Co., LLP, in Boca Raton, Fla., expressed substantial doubt
about the Company's ability to continue as a going concern,
following its results for the fiscal year ended March 31, 2010.
The independent auditors noted that the Company has suffered
recurring losses and has a negative working capital position and a
stockholders' deficit.
INTERNATIONAL COAL: Amends Bylaws' Notice Requirements
------------------------------------------------------
On November 17, 2010, the Board of Directors of International Coal
Group Inc. amended and restated the Company's Second Amended and
Restated Bylaws, as amended. The Company's Third Amended and
Restated Bylaws:
i) update the notice requirements for business to be properly
requested by a stockholder to be brought before an annual
meeting;
ii) update the notice requirements for stockholders to
nominate directors at an annual meeting; and
iii) clarify and make minor revisions to Sections 3, 4, 5, and
34.
A full-text copy of the Amended Bylaws is available for free
at http://ResearchArchives.com/t/s?6fe8
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.
The Company's balance sheet at Sept. 30, 2010, showed
$1.47 billion in total assets, $720.28 million in total
liabilities, and stockholder's equity of $748.30 million.
* * *
International Coal Group carries 'Caa1' corporate family and
probability of default ratings from Moody's Investors Service.
In March 2010, Moody's said the ratings "continue to reflect ICG's
elevated cost structure amidst an uncertain price environment,
inherent operating risk at its mines, history of operating and
financial challenges, significant capital spending requirements,
and uncertainty regarding mine permitting obstacles particularly
given the large percentage of surface mine production."
JAMES HICKEY: Case Summary & 10 Largest Unsecured Creditors
-----------------------------------------------------------
Debtor: James Michael Hickey
P.O. Box 2320
Minden, NV 89423
Bankruptcy Case No.: 10-54643
Chapter 11 Petition Date: November 24, 2010
Court: United States Bankruptcy Court
District of Nevada (Reno)
Judge: Gregg W. Zive
Debtor's Counsel: Stephen R. Harris, Esq.
BELDING, HARRIS & PETRONI, LTD
417 W Plumb Ln
Reno, NV 89509
Tel: (775) 786-7600
Fax: (775) 786-7764
E-mail: steve@renolaw.biz
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
A list of the Debtor's 10 largest unsecured creditors
filed together with the petition is available for free
at http://bankrupt.com/misc/nvb10-54643.pdf
JOEL WEBER: Case Summary & 13 Largest Unsecured Creditors
---------------------------------------------------------
Joint Debtors: Joel M. Weber
Nauvy R. Weber
aka Nauvy Rath
31377 Mackinaw Street
Union City, CA 94587
Bankruptcy Case No.: 10-73567
Chapter 11 Petition Date: November 24, 2010
Court: United States Bankruptcy Court
Northern District of California (Oakland)
Judge: Roger L. Efremsky
Debtor's Counsel: Darya Sara Druch, Esq.
LAW OFFICES OF DARYA SARA DRUCH
1 Kaiser Plaza #480
Oakland, CA 94612
Tel: (510) 465-1788
E-mail: ecf@daryalaw.com
Scheduled Assets: $1,320,685
Scheduled Debts: $1,833,881
A list of the Joint Debtors' 13 largest unsecured creditors
filed together with the petition is available for free
at http://bankrupt.com/misc/canb10-73567.pdf
LEHMAN BROTHERS: Payments to Professionals Reach $1.055 Billion
---------------------------------------------------------------
Lehman Brothers Holdings Inc. disclosed these cash receipts and
disbursements of the company, its affiliated debtors and other
controlled entities for the month ended October 31, 2010:
Beginning Cash & Investments (10/01/10) $20,283,000,000
Total Sources of Cash 1,768,000,000
Total Uses of Cash (979,000,000)
FX Fluctuation 16,000,000
---------------
Ending Cash & Investments (10/31/10) $21,088,000,000
LBHI reported $2.509 billion in cash and investments as of
October 1, 2010, and $2.572 billion as of October 1, 2010.
The monthly operating report also showed that from September 15,
2008 to October 31, 2010, a total of $ 1,055,228,000 was paid to
professionals that were retained in the Debtors' Chapter 11
cases. Of the amount, $369.843 million was paid to the Debtors'
turnaround manager, Alvarez & Marsal LLC, while $ 245.840 million
was paid to their bankruptcy counsel, Weil Gotshal & Manges LLP.
A full-text copy of the October 2010 Operating Report is
available for free at:
http://bankrupt.com/misc/LehmanMOROct2010.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)
LEHMAN BROTHERS: Wants to Recover $7 Billion from Barclays
----------------------------------------------------------
Lehman Brothers Holdings Inc., Barclays Capital, Inc., the
Official Committee of Unsecured Creditors, James W. Giddens, as
trustee for the SIPA liquidation of Lehman Brothers Inc., the
Securities Investor Protection Corporation, and the U.S.
Securities and Exchange Commission submitted separate post-
hearing briefs relating to the ongoing dispute on the sale of
LBHI's North American broker-dealer business to Barclays in
September 2008.
LBHI asked Judge James Peck of the U.S. Bankruptcy Court for the
Southern District of New York to reverse his September 2008 sale
order holding that the sale that closed in September 2008 was not
the deal that had been described to the Court.
"The sale transaction that was disclosed to the Court was based
upon false premises from the very outset," Robert Gaffey, Esq.,
at Jones Day, in New York, said in court papers. The evidence at
trial proved that some material aspects of the sale were either
misrepresented or were never disclosed at all, he added.
According to the Lehman lawyer, the Court was made to believe
that the deal it approved was a balanced transaction when it was
not.
"There was a first day gain embedded in the deal, resulting in a
windfall for Barclays of approximately $13 billion immediately
upon closing," he said.
The Court was also told that the securities being transferred to
Barclays were about $70 billion as of September 16, 2008, when it
was actually $5 billion lower than the Lehman book value,
according to Mr. Gaffey. "It was a negotiated value," he pointed
out.
The Lehman lawyer further disclosed that Barclays demanded for
additional assets to be included in the sale block and threatened
not to close unless its demands were met.
"This was followed by the Friday asset scramble, in which
billions of dollars in assets were added," Mr. Gaffey said. "Not
one word was uttered at the sale hearing about any of this."
LBHI asked Judge Peck to award the estate about $13 billion,
"reflecting the value of the assets improperly transferred to
Barclays over and above that disclosed to and approved by the
Court" as well as all fees ad costs.
Last-Minute Changes
Mr. Gaffey also criticized Barclays for failing to show the Court
the so-called clarification letter which, the lawyer said,
"materially altered" the deal.
The clarification letter is a key element of LBHI's lawsuit
against Barclays as it reportedly made last-minute changes to the
terms of the sale, causing the allocation of additional assets to
Barclays.
"Barclays suggested throughout the trial that the clarification
letter was merely ministerial," Mr. Gaffey said. "But Barclays'
effort to make the transfer of billions in additional assets
disappear was belied not only by the evidence at trial but also
the terms of the letter itself, which expressly said it amends
the asset purchase agreement."
The Official Committee of Unsecured Creditors also criticized the
content of the clarification letter, saying it did not reveal all
aspects of the sale including the $5 billion negotiated discount.
"If the clarification letter provided the transparency concerning
transaction modifications that Barclays claims, Barclays surely
should have submitted the clarification letter to the Court for
review and approval," the Creditors Committee said in court
papers.
At the October 21 hearing, Judge Peck denied that he approved the
clarification letter after a Barclays lawyer argued that he had
no legal basis for reopening his own sale order since all details
of the deal were known at that time including the letter.
A key drafter of the clarification letter, however, who made
last-minute changes to the terms of the sale testified that no
one from Lehman opposed the terms of the letter.
Barclays' lawyer, Edward Rosen, Esq., at Cleary Gottlieb Steen &
Hamilton, New York, who added some key words to the letter to
clarify which of the assets were being sold to the British bank,
said that he only heard complaints about the changes in the
months following the buyout.
LBI Claims $7 Billion From Barclays
The trustee for LBI, the broker-dealer unit of LBHI, asked Judge
Peck to disallow what he called the wrongful transfer of $7
billion of assets to Barclays.
Barclays is seeking $3 billion of the assets, saying the trustee
promised to deliver them after LBHI filed for bankruptcy
protection.
"Transferring these additional assets to Barclays would
materially and adversely affect the estate and deprive the
trustee of customer property needed to satisfy the claims of
those customers whom Barclays rejected," Mr. Giddens said.
The money includes the $1.3 billion of assets claimed by
Barclays, the transfer of which may violate securities laws,
according to a post-trial brief filed by the U.S. Securities and
Exchange Commission.
The $1.3 billion of assets consist of $769 million in securities
held in LBI's reserve bank account, and $507 million in cash and
securities listed as a debit item in the company's customer
reserve.
The SEC said the transfer would violate securities law if they
increased the deficiency in the reserve bank account and if LBI
would not have sufficient funds to satisfy all claims of its
remaining customers.
Barclays said the assets were allocated to it in a sale document
signed by all parties to the 2008 transaction. The British bank
still claims the assets which were never delivered, Bloomberg
News reported.
Any money awarded by the Court to Lehman would help its
creditors, who stand to get on average 15.8 cents on the dollar,
and hurt shareholders of Barclays, which reported net income of
2.4 billion pounds in the first half, according to the report.
No Better Alternative
In defense of Barclays, Jonathan Schiller, Esq., at Boies
Schiller & Flexner LLP, in New York, argued that the opposing
parties failed to provide evidence at trial that there was any
better alternative for the Lehman estates and creditors than the
2008 sale.
Mr. Schiller said there was no alternative bidder willing to pay
higher consideration for the assets acquired by Barclays, and
that the sale was better than liquidating the Lehman estates.
Mr. Schiller dismissed arguments that the opposing parties did
not know the information on which they have based their claims at
the time of the sale. He said they chose not to raise any
concern because they knew the information was consistent with the
court-approved sale.
Judge Peck must decide whether to alter the deal or let all or
part of it stand. The bankruptcy judge said last month he had
been leaning toward Barclays' view that he would have approved
the buyout even if he had known everything he knows now,
according to a November 22 report by Bloomberg News.
Judges can reopen a contract to correct mistakes or, under so-
called Rule 60(b) of the Federal Rules of Civil Procedure, if new
evidence or fraud is discovered. But Lynn LoPucki, professor at
the University of California, said he knows of no emergency
bankruptcy sale in his 898-case database that has been reopened,
Bloomberg News reported.
Barclays' lawyer David Boies, Esq., at Boies, Schiller & Flexner
LLP, in New York, told Judge Peck that federal law does not allow
him to rewrite the sale contract.
"Rule 60 does not give a court the right in a Rule 60 proceeding,
we submit, to rewrite the contract and impose additional changes
that Barclays didn't agree to at the time," Bloomberg News quoted
Mr. Boies as telling the bankruptcy judge.
Lehman wants "to construct an entirely new contract by taking
certain provisions that they like and disregarding those that
they don't like," according to Mr. Boies.
Lawyers in the Lehman case said there could be a decision from
Judge Peck in January or February 2011, Bloomberg News reported.
Full-text copies of the post-trial briefs are available without
charge at:
http://bankrupt.com/misc/LBHI_PosttrialbriefLBHI.pdf
http://bankrupt.com/misc/LBHI_PosttrialbriefCommittee.pdf
http://bankrupt.com/misc/LBHI_PosttrialbriefBarclays.pdf
http://bankrupt.com/misc/LBHI_PosttrialbriefSEC.pdf
In a related development, LBHI, Barclays, the Creditors Committee
and LBI's trustee inked a stipulation concerning the designation
of testimonies from their witnesses.
The stipulation provides that upon its approval by the Court,
those designated testimonies will be admitted into evidence in
accordance with the Court's comments during the evidentiary
hearing on October 18, 2010.
A full-text copy of the stipulation is available without charge
at http://bankrupt.com/misc/LBHI_StipulationDesignation.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)
LEHMAN BROTHERS: Proposes Settlement With Heritage Fields
---------------------------------------------------------
Lehman Brothers Holdings Inc. and Lehman Commercial Paper Inc.
seek court approval to enter into a settlement agreement to
recover their investment in the Heritage Fields project.
The Heritage Fields project is a 3,723-acre masterplan
development in California owned by Heritage Fields El Toro LLC.
The proposed settlement requires LBHI to ink an agreement with El
Toro LLC, under which the latter will grant a $250 million
participation interest to the company, and a $197,470,189
participation interest to State Street Bank and Trust Company in
the $775 million loan that El Toro previously provided to
Heritage for the project. Following the execution of the
agreement, LBHI will receive a discounted pay off in the sum of
$125 million and will be given an option for a cash flow
participation by Heritage.
Following completion of the transactions under the proposed
settlement, LBHI and LCPI will no longer have any interest in the
Heritage Fields project other than a cash-flow participation.
State Street Bank will also be the new lender to the project.
"Lehman's retention of its interest in the Heritage Fields
project could result in no recovery for the estate. The Heritage
Fields project continues to have substantial costs associated
with it which need to be funded," says Alfredo Perez, Esq., at
Weil Gotshal & Manges LLP, in Houston, Texas.
"Entry into the settlement agreement and consummation of the
transactions will relieve LBHI from this funding burden," Mr.
Perez says in a court filing.
LBHI is still in the process of finalizing the form of the
settlement agreement and will file a copy of the agreement before
December 8, 2010, according to Mr. Perez.
The company previously sought court approval of a settlement with
Heritage to recover its investment in the project. The proposed
settlement was eventually withdrawn after the parties involved
failed to finalize the deal.
The Court will consider approval of the proposed settlement at
the hearing scheduled for December 15, 2010. Deadline for filing
objections is December 8, 2010.
About Lehman Brothers
Lehman Brothers Holdings Inc. -- http://www.lehman.com/-- was the
fourth largest investment bank in the United States. For more
than 150 years, Lehman Brothers has been a leader in the global
financial markets by serving the financial needs of corporations,
governmental units, institutional clients and individuals
worldwide.
Lehman Brothers filed for Chapter 11 bankruptcy September 15, 2008
(Bankr. S.D.N.Y. Case No. 08-13555). Lehman's bankruptcy petition
listed US$639 billion in assets and US$613 billion in debts,
effectively making the firm's bankruptcy filing the largest in
U.S. history. Several other affiliates followed thereafter.
The Debtors' bankruptcy cases are handled by Judge James M. Peck.
Harvey R. Miller, Esq., Richard P. Krasnow, Esq., Lori R. Fife,
Esq., Shai Y. Waisman, Esq., and Jacqueline Marcus, Esq., at Weil,
Gotshal & Manges, LLP, in New York, represent Lehman. Epiq
Bankruptcy Solutions serves as claims and noticing agent.
On September 19, 2008, the Honorable Gerard E. Lynch, Judge of the
U.S. District Court for the Southern District of New York, entered
an order commencing liquidation of Lehman Brothers, Inc., pursuant
to the provisions of the Securities Investor Protection Act (Case
No. 08-CIV-8119 (GEL)). James W. Giddens has been appointed as
trustee for the SIPA liquidation of the business of LBI
The Bankruptcy Court has approved Barclays Bank Plc's purchase
of Lehman Brothers' North American investment banking and
capital markets operations and supporting infrastructure for
US$1.75 billion. Nomura Holdings Inc., the largest brokerage
house in Japan, purchased LBHI's operations in Europe for US$2
plus the retention of most of employees. Nomura also bought
Lehman's operations in the Asia Pacific for US$225 million.
International Operations Collapse
Lehman Brothers International (Europe), the principal UK trading
company in the Lehman group, was placed into administration,
together with Lehman Brothers Ltd, LB Holdings PLC and LB UK RE
Holdings Ltd. Tony Lomas, Steven Pearson, Dan Schwarzmann and
Mike Jervis, partners at PricewaterhouseCoopers LLP, have been
appointed as joint administrators to Lehman Brothers International
(Europe) on September 15, 2008. The joint administrators have
been appointed to wind down the business.
Lehman Brothers Japan Inc. and Lehman Brothers Holdings Japan Inc.
filed for bankruptcy in the Tokyo District Court on September 16.
Lehman Brothers Japan Inc. reported about JPY3.4 trillion
(US$33 billion) in liabilities in its petition.
Bankruptcy Creditors' Service, Inc., publishes Lehman Brothers
Bankruptcy News. The newsletter tracks the Chapter 11 proceeding
undertaken by Lehman Brothers Holdings, Inc., and other insolvency
and bankruptcy proceedings undertaken by its affiliates.
(http://bankrupt.com/newsstand/or 215/945-7000)
LEHMAN BROTHERS: Proposes Settlement With European Administrators
-----------------------------------------------------------------
Lehman Brothers Holdings Inc. seeks court approval of a new
services agreement with the administrators of its European units.
The agreement was hammered out to provide LBHI continued access
to the information systems of its U.K.-based units to support the
valuation and unwinding of derivatives trades that were booked
through those information systems.
The U.K.-based Lehman units include Lehman Brothers Europe
Limited, Lehman Brothers International Europe, Lehman Brothers
Holdings Plc and Lehman Brothers Ltd. These companies had been
placed in administration following the bankruptcy filing of LBHI.
LBHI previously entered into a transition services agreement with
the administrators to unwind their assets in U.K. The TSA
expired on November 14, 2010, prompting LBHI to seek for
temporary extension of the TSA, on the condition that the company
seeks approval of the new services agreement.
Under the new agreement, the services to be provided to LBHI
include systems access and data provision necessary for the
company to continue unwinding derivatives trades that were
originally booked through its London-based systems. The company
will also be provided other data to support potential or ongoing
litigation, alternative dispute resolution proceedings, among
other things.
A full-text copy of the new services agreement is available for
free at http://bankrupt.com/misc/LBHI_NSAAdministrators.pdf
The Court will consider approval of the new services agreement at
the hearing scheduled for December 15, 2010. Deadline for filing
objections is December 8, 2010.
About Lehman Brothers
Lehman Brothers Holdings Inc. -- http://www.lehman.com/-- was the
fourth largest investment bank in the United States. For more
than 150 years, Lehman Brothers has been a leader in the global
financial markets by serving the financial needs of corporations,
governmental units, institutional clients and individuals
worldwide.
Lehman Brothers filed for Chapter 11 bankruptcy September 15, 2008
(Bankr. S.D.N.Y. Case No. 08-13555). Lehman's bankruptcy petition
listed US$639 billion in assets and US$613 billion in debts,
effectively making the firm's bankruptcy filing the largest in
U.S. history. Several other affiliates followed thereafter.
The Debtors' bankruptcy cases are handled by Judge James M. Peck.
Harvey R. Miller, Esq., Richard P. Krasnow, Esq., Lori R. Fife,
Esq., Shai Y. Waisman, Esq., and Jacqueline Marcus, Esq., at Weil,
Gotshal & Manges, LLP, in New York, represent Lehman. Epiq
Bankruptcy Solutions serves as claims and noticing agent.
On September 19, 2008, the Honorable Gerard E. Lynch, Judge of the
U.S. District Court for the Southern District of New York, entered
an order commencing liquidation of Lehman Brothers, Inc., pursuant
to the provisions of the Securities Investor Protection Act (Case
No. 08-CIV-8119 (GEL)). James W. Giddens has been appointed as
trustee for the SIPA liquidation of the business of LBI
The Bankruptcy Court has approved Barclays Bank Plc's purchase
of Lehman Brothers' North American investment banking and
capital markets operations and supporting infrastructure for
US$1.75 billion. Nomura Holdings Inc., the largest brokerage
house in Japan, purchased LBHI's operations in Europe for US$2
plus the retention of most of employees. Nomura also bought
Lehman's operations in the Asia Pacific for US$225 million.
International Operations Collapse
Lehman Brothers International (Europe), the principal UK trading
company in the Lehman group, was placed into administration,
together with Lehman Brothers Ltd, LB Holdings PLC and LB UK RE
Holdings Ltd. Tony Lomas, Steven Pearson, Dan Schwarzmann and
Mike Jervis, partners at PricewaterhouseCoopers LLP, have been
appointed as joint administrators to Lehman Brothers International
(Europe) on September 15, 2008. The joint administrators have
been appointed to wind down the business.
Lehman Brothers Japan Inc. and Lehman Brothers Holdings Japan Inc.
filed for bankruptcy in the Tokyo District Court on September 16.
Lehman Brothers Japan Inc. reported about JPY3.4 trillion
(US$33 billion) in liabilities in its petition.
Bankruptcy Creditors' Service, Inc., publishes Lehman Brothers
Bankruptcy News. The newsletter tracks the Chapter 11 proceeding
undertaken by Lehman Brothers Holdings, Inc., and other insolvency
and bankruptcy proceedings undertaken by its affiliates.
(http://bankrupt.com/newsstand/or 215/945-7000)
LEHMAN BROTHERS: LBPF Has Deal with Madison, et al.
---------------------------------------------------
Lehman Brothers Financial Products Inc. seeks court approval to
enter into a deal to settle a lawsuit it filed against U.S. Bank
N.A. and two others in connection with their derivatives
contracts.
LBFP filed the lawsuit against U.S. Bank, Madison Avenue
Structured Finance CDO I Ltd., and Madison Avenue Structured
Finance CDO I, Corp., to challenge the provisions in the
documents that were executed in connection with their derivatives
transactions.
Under the deal, LBFP will receive from the Madison entities a
settlement payment in exchange for the dismissal of the lawsuit.
The parties also agreed to release each other from all claims
that stemmed from their derivatives transactions and the lawsuit.
The deal is formalized in a seven-page agreement, a full-text
copy of which is available without charge at:
http://bankrupt.com/misc/LBHI_MadisonAgreement.pdf
The deal comes following a mediation held last month among LBFP,
U.S. Bank and the collateral manager, MetLife Investment Advisors
Company LLC, in compliance with the Court's September 17, 2009
order. The order approved a process for resolving claims of LBFP
and its affiliated debtors under derivatives contracts.
The Court will consider approval of the agreement at the hearing
scheduled for December 15, 2010. Deadline for filing objections
is December 8, 2010.
About Lehman Brothers
Lehman Brothers Holdings Inc. -- http://www.lehman.com/-- was the
fourth largest investment bank in the United States. For more
than 150 years, Lehman Brothers has been a leader in the global
financial markets by serving the financial needs of corporations,
governmental units, institutional clients and individuals
worldwide.
Lehman Brothers filed for Chapter 11 bankruptcy September 15, 2008
(Bankr. S.D.N.Y. Case No. 08-13555). Lehman's bankruptcy petition
listed US$639 billion in assets and US$613 billion in debts,
effectively making the firm's bankruptcy filing the largest in
U.S. history. Several other affiliates followed thereafter.
The Debtors' bankruptcy cases are handled by Judge James M. Peck.
Harvey R. Miller, Esq., Richard P. Krasnow, Esq., Lori R. Fife,
Esq., Shai Y. Waisman, Esq., and Jacqueline Marcus, Esq., at Weil,
Gotshal & Manges, LLP, in New York, represent Lehman. Epiq
Bankruptcy Solutions serves as claims and noticing agent.
On September 19, 2008, the Honorable Gerard E. Lynch, Judge of the
U.S. District Court for the Southern District of New York, entered
an order commencing liquidation of Lehman Brothers, Inc., pursuant
to the provisions of the Securities Investor Protection Act (Case
No. 08-CIV-8119 (GEL)). James W. Giddens has been appointed as
trustee for the SIPA liquidation of the business of LBI
The Bankruptcy Court has approved Barclays Bank Plc's purchase
of Lehman Brothers' North American investment banking and
capital markets operations and supporting infrastructure for
US$1.75 billion. Nomura Holdings Inc., the largest brokerage
house in Japan, purchased LBHI's operations in Europe for US$2
plus the retention of most of employees. Nomura also bought
Lehman's operations in the Asia Pacific for US$225 million.
International Operations Collapse
Lehman Brothers International (Europe), the principal UK trading
company in the Lehman group, was placed into administration,
together with Lehman Brothers Ltd, LB Holdings PLC and LB UK RE
Holdings Ltd. Tony Lomas, Steven Pearson, Dan Schwarzmann and
Mike Jervis, partners at PricewaterhouseCoopers LLP, have been
appointed as joint administrators to Lehman Brothers International
(Europe) on September 15, 2008. The joint administrators have
been appointed to wind down the business.
Lehman Brothers Japan Inc. and Lehman Brothers Holdings Japan Inc.
filed for bankruptcy in the Tokyo District Court on September 16.
Lehman Brothers Japan Inc. reported about JPY3.4 trillion
(US$33 billion) in liabilities in its petition.
Bankruptcy Creditors' Service, Inc., publishes Lehman Brothers
Bankruptcy News. The newsletter tracks the Chapter 11 proceeding
undertaken by Lehman Brothers Holdings, Inc., and other insolvency
and bankruptcy proceedings undertaken by its affiliates.
(http://bankrupt.com/newsstand/or 215/945-7000)
LEHMAN BROTHERS: LBSF Proposes to Terminate Derivative Contracts
----------------------------------------------------------------
Lehman Brothers Special Financing Inc. and Lehman Brothers
Financial Products Inc. seek a court ruling authorizing the
termination of their derivatives contracts effective September
22, 2010.
The Lehman units are party to 19 derivatives contracts with
various trusts and special purpose vehicles administered by U.S.
Bank National Association, which were formed to hold residential
mortgage loans and issue securities.
A list of the subject contracts is available without charge
at http://bankrupt.com/misc/LBHI_19DerivativesContractsUSBank.pdf
In connection with the termination of the derivatives contracts,
LBSF and LBFP also propose to settle the amounts owed to the
trusts.
Lori Fife, Esq., at Weil Gotshal & Manges LLP, in New York, says
the proposed termination would limit any increase in damages that
could be claimed by the trusts under the derivatives contracts.
She adds that the contracts can never move "in-the-money" to LBSF
and LBFP, and some of them have long maturities.
Earlier, U.S. Bank filed proofs of claim on account of the
derivatives contracts to be terminated. In exchange for their
termination, LBSF and LBFP agreed with U.S. Bank that the claims,
excluding those that did not comply with the requirements for
filing proofs of claim, will be allowed in their settled amounts.
U.S. Bank has already agreed to the terms of the proposed
termination and settlement of the contracts and has already
notified holders of the securities issued by the trusts. The
bank, however, has not yet received a response or instruction to
terminate and settle the contracts from those holders, according
to Daniel Ehrmann, managing director of turnaround firm Alvarez &
Marsal North America LLC.
The Court will consider approval of the proposed termination at
the hearing scheduled for December 15, 2010. Deadline for filing
objections is December 8, 2010.
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)
LEVEL 3 COMMS: Bank Debt Trades at 7% Off in Secondary Market
-------------------------------------------------------------
Participations in a syndicated loan under which Level 3
Communications, Inc., is a borrower traded in the secondary market
at 93.18 cents-on-the-dollar during the week ended Friday,
November 26, 2010, according to data compiled by Loan Pricing
Corp. and reported in The Wall Street Journal. This represents a
drop of 0.55 percentage points from the previous week, The Journal
relates. The Company pays 225 basis points above LIBOR to borrow
under the facility. The bank loan matures on March 1, 2014, and
carries Moody's B1 rating and Standard & Poor's B+ rating. The
loan is one of the biggest gainers and losers among 192 widely
quoted syndicated loans with five or more bids in secondary
trading for the week ended Friday.
As reported by the Troubled Company Reporter on Sept. 16, 2010,
Standard & Poor's assigned its 'CCC' issue-level rating and '6'
recovery rating to Level 3 Communications Inc.'s proposed
aggregate $175 million of convertible senior notes due 2016.
The company intends to use the proceeds from the new notes for
general corporate purposes, including the potential repurchase or
redemption of its 5.25% convertible senior notes due in 2011.
This facilities-based provider of communications services and
transport reported just under $6.3 billion of consolidated debt at
June 30, 2010.
About Level 3 Communications
Headquartered in Broomfield, Colorado, Level 3 Communications,
Inc., is a publicly traded international communications company
with one of the world's largest communications and Internet
backbones.
The Company's balance sheet at Sept. 30, 2010, showed
$8.36 billion in total assets, $8.45 billion in total liabilities,
and a stockholder's deficit of $86.0 million.
Level 3 Communications carries a 'Caa1' corporate family rating,
and 'Caa2' probability of default rating, with negative outlook
from Moody's, a 'B-' issuer default rating from Fitch, and 'B-'
long term issuer credit ratings from Standard & Poor's.
LEXICON UNITED: Incurs $137,600 Net Loss in September 30 Quarter
----------------------------------------------------------------
Lexicon United Incorporated filed its quarterly report on Form
10-Q, reporting a net loss of $137,660 on $1.21 million of total
revenues for the three months ended Sept. 30, 2010, compared with
a net loss of $181,732 on $1.22 million of total revenues for the
same period a year ago.
The Company's balance sheet at Sept. 30, 2010, showed
$3.02 million in total assets, $3.11 million in total liabilities,
and a stockholder's deficit of $86,505.
A full-text copy of the quarterly report on Form 10-Q is available
for free at http://ResearchArchives.com/t/s?6fea
About Lexicon United
Austin, Tex.-based Lexicon United Incorporated and its subsidiary,
ATN Capital e Participacoes Ltd., a Brazilian limited company, are
engaged in the business of purchasing, managing and collecting
defaulted consumer receivables for its own account and managing,
collecting and servicing portfolios of defaulted and charged-off
account receivables for large financial institutions in Brazil.
These receivables are acquired from consumer credit originators,
primarily credit card issuers in Brazil.
As reported in the Troubled Company Reporter on May 25, 2010,
Meyler & Company, LLC, in Middletown, N.J., expressed substantial
doubt about the Company's ability to continue as a going concern
following the Company's 2009 results. The independent auditors
noted that the Company continues to have negative cash flows from
operations, recurring losses from operations, and has a
stockholders' deficit.
LITHIUM TECHNOLOGY: Posts $1.9 Million Net Loss in Q1 2010
----------------------------------------------------------
Lithium Technology Corporation filed its quarterly report on
Form 10-Q, reporting a net loss of $1.90 million on $1.72 million
of revenue for the three months ended March 31, 2010, compared
with a net loss of $2.53 million on $1.32 million of revenue for
the same period last year.
As of March 31, 2010, the Company had an accumulated deficit of
roughly $149.89 million.
The Company's balance sheet at March 31, 2010, showed
$10.08 million in total assets, $30.23 million in total
liabilities, and a stockholders' deficit of $20.15 million.
As reported in the Troubled Company Reporter on April 12, 2010,
Amper, Politziner & Mattia LLP, in Edison, N.J., expressed
substantial doubt about the Company's ability to continue as a
going concern, following the Company's 2009 results. The
independent auditors noted that the Company has recurring losses
from operations since inception and has a working capital
deficiency.
A full-text copy of the Form 10-Q is available for free at:
http://researcharchives.com/t/s?6fec
Plymouth Meeting, Pa.-based Lithium Technology Corporation is a
mid-volume production stage company that develops large format
lithium-ion rechargeable batteries to be used as a new power
source for emerging applications in the automotive, stationary
power, and national security markets.
LINCOLN MILLWORK: Case Summary & 20 Largest Unsecured Creditors
---------------------------------------------------------------
Debtor: Lincoln Millwork, Inc.
dba Lincoln Store Fixtures, Inc.
P.O. Box 118
Biddeford, ME 04005
Bankruptcy Case No.: 10-21952
Chapter 11 Petition Date: November 24, 2010
Court: United States Bankruptcy Court
District of Maine (Portland)
Judge: James B. Haines Jr.
Debtor's Counsel: James F. Molleur, Esq.
MOLLEUR LAW OFFICE
419 Alfred Street
Biddeford, ME 04005
Tel: (207) 283-3777
Fax: (207) 283-4558
E-mail: jim@molleurlaw.com
Estimated Assets: $500,001 to $1,000,000
Estimated Debts: $1,000,001 to $10,000,000
A list of the Company's 20 largest unsecured creditors
filed together with the petition is available for free
at http://bankrupt.com/misc/meb10-21952.pdf
The petition was signed by David C. Boilard, president.
MARK MURPHY: Value of Massillon, Ohio Property Pegged at $135,600
-----------------------------------------------------------------
The Hon. Russ Kendig rules that the value of real estate located
at 2506 Kenyon Ave., N.W., Massillon, Ohio, is $135,600. Debtors
Mark D. Murphy and Malissa K. Murphy and Huntington National Bank
dispute the value of the property.
On October 13, 2010, the court entered an amended confirmation
order on the Debtors' chapter 11 plan. Under the order, the
Debtors and certain creditors agreed to have the court determine
property values by the submission of competing appraisals to the
court, without hearing.
A copy of the Court's memorandum opinion, dated November 23, 2010,
is available at http://is.gd/hNPzxfrom Leagle.com.
Mark D. Murphy and Melissa K. Murphy filed for Chapter 11
bankruptcy (Bankr. N.D. Ohio Case No. 09-60854) on March 16, 2009.
Anthony J. DeGirolamo, Esq., in Canton, Ohio, serves as bankruptcy
counsel. The Murphies listed $1,212,515 in total assets and
$1,790,689 in total debts.
MARTIN CADILLAC: Can Auction Cadillac Dealership on December 3
--------------------------------------------------------------
The Hon. James J. Waldron of the the U.S. Bankruptcy Court for the
District of New Jersey authorized Martin Cadillac, LLC, to sell
certain assets in an auction led by DTF Holdings, LLC.
The Court authorized the Debtor to assign its right under that
certain dealer sales and service agreement between the Debtor and
General Motors LLC to propose a change in ownership; and if
necessary, assign the Debtor's right with respect to a purchase
option for the premises at which the Debtor is located.
DTF offered to acquire the Debtor's Cadillac automobile dealership
at 374 Route 9 West (Sylvan Avenue) in Englewood Cliffs, New
Jersey for $1,600,000, and the real property at which the
dealership is located for $4,500,000.
The Debtor owned and operated the dealership pursuant to a certain
Dealer Sales and Services Agreement between the Debtor and General
Motors LLC, a successor in interest to General Motors Corporation.
The Debtor ceased operations on October 20, and its right to own
and operate the dealership terminated effective as of October 25.
The Debtor scheduled an auction on December 3 for the assets.
Competing bids for the dealership will be due November 30, 2010,
at 12:00 p.m. (Eastern Standard Time).
The Court will consider the sale of the assets to DTF or the
winning bidder at a hearing on December 9 at 10:00 a.m., before
the Hon. Rosemary Gambardella.
If no bid packages are received by the bid deadline, then by
December 1, the Debtor will seek approval of DTF stalking horse
bid at the sale hearing.
About Martin Cadillac, LLC
Englewood Cliffs, New Jersey-based Martin Cadillac, LLC, filed for
Chapter 11 bankruptcy protection on June 25, 2010 (Bankr. D.N.J.
Case No. 10-29520). Gregory S. Kinoian, Esq., and Paul S.
Hollander, Esq., at Okin, Hollander & DeLuca, LLP, represents the
Debtor. The Company estimated assets and debts at $10 million to
$50 million.
METRO-GOLDWYN-MAYER: Debt Trades at 55% Off in Secondary Market
---------------------------------------------------------------
Participations in a syndicated loan under which Metro-Goldwyn-
Mayer, Inc., is a borrower traded in the secondary market at 44.94
cents-on-the-dollar during the week ended Friday, November 26,
2010, according to data compiled by Loan Pricing Corp. and
reported in The Wall Street Journal. This represents a drop of
0.84 percentage points from the previous week, The Journal
relates. The Company pays 275 basis points above LIBOR to borrow
under the facility, which matures on April 8, 2012. The debt is
not rated by Moody's and Standard & Poor's. The loan is one of
the biggest gainers and losers among 192 widely quoted syndicated
loans with five or more bids in secondary trading for the week
ended Friday.
About Metro-Goldwyn-Mayer Studios
Metro-Goldwyn-Mayer Studios Inc. -- http://www.mgm.com/-- is
actively engaged in the worldwide production and distribution of
motion pictures, television programming, home video, interactive
media, music, and licensed merchandise. The company owns the
world's largest library of modern films, comprising around 4,100
titles. Operating units include Metro-Goldwyn-Mayer Studios Inc.,
Metro-Goldwyn-Mayer Pictures Inc., United Artists Films Inc., MGM
Television Entertainment Inc., MGM Networks Inc., MGM Distribution
Co., MGM International Television Distribution Inc., Metro-
Goldwyn-Mayer Home Entertainment LLC, MGM ON STAGE, MGM Music, MGM
Consumer Products and MGM Interactive. In addition, MGM has
ownership interests in domestic and international TV channels
reaching over 130 countries.
As of September 30, 2010, the Debtors' unaudited consolidated
financial statements, as prepared in accordance with accounting
principles generally accepted in the United States for interim
financial statements, included $2,673,772,000 in total assets and
$3,451,493,000 in total liabilities
Excluding certain adjustments made by the Company in accordance
with GAAP, the Debtors' total outstanding liabilities would be
$5,766,721,000, which includes the total face value of outstanding
principal and accrued, but unpaid, interest under the Credit
Agreement and interest rate swap agreements.
Metro-Goldwyn-Mayer Inc. and 160 of its affiliates on November 3
filed Chapter 11 cases (Bankr. S.D.N.Y. Lead Case No. 10-15774),
to seek confirmation of their "pre-packaged" plan of
reorganization.
Jay M. Goffman, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP,
in New York, serves as bankruptcy counsel to the Debtors. Klee,
Tuchin, Bogdanoff & Stern LLP is the legal counsel. Moelis &
Company is the financial advisor. Donlin Recano & Company, Inc.,
is the claims and notice agent. CAIR Management, LLC, Stephen F.
Cooper, and Zolfo Cooper Management LLC, is the Debtors'
management service providers.
Bankruptcy Creditors' Service, Inc., publishes METRO-GOLDWYN-MAYER
BANKRUPTCY NEWS. The newsletter tracks the Chapter 11 proceeding
undertaken by Metro-Goldwyn-Mayer Inc. and its affiliates.
(http://bankrupt.com/newsstand/or 215/945-7000)
MEXICAN RESTAURANTS: Posts $448,042 Net Loss in Oct. 3 Quarter
--------------------------------------------------------------
Mexican Restaurants, Inc., filed its quarterly report on Form 10-
Q, reporting a net loss of $448,042 for the 13-week period ended
October 3, 2010, compared with a net loss $232,614 for the 13-week
period ended September 27, 2009.
The Company reported revenue of $16,599,216 for the 13-week period
ended October 3, 2010, compared with $17,332,513 for the 13-week
period ended September 27, 2009.
The Company's balance sheet at October 3, 2010, showed $26,664,120
in total assets, $12,310,273 in total liabilities, and $14,353,847
in stockholders' equity.
As of October 3, 2010, the Company was out of compliance with
certain of its debt covenants with Wells Fargo Bank. Due to loan
covenant defaults, the entire balance of $4.4 million revolving
line of credit payable to Wells Fargo Bank, N.A., is included in
current liabilities. If Wells Fargo Bank were to accelerate
payment of the revolving line of credit payable and if the Company
is not successful in raising additional operating capital, the
Company would not have the ability to satisfy its liabilities in
the normal course of business. As a result of the foregoing
circumstances, the Company believes there is substantial doubt
about its ability to continue as a going concern.
In October 2009, the Company implemented planned expense
reductions to reduce general and administrative expenses to
achieve a level of expense that management believes is sustainable
through fiscal year 2010. In implementing the cost savings,
severance pay of approximately $190,000 was incurred related to
staff reductions at the corporate office. Total cost savings of
approximately $1.1 million through fiscal year 2010 is expected
from planned general and administrative expense reductions related
to the decrease in corporate payroll costs as well as reduced
marketing and other general and administrative costs.
Wells Fargo is not accelerating the loan at this time, but
reserves the right to accelerate the loan in the future after the
giving of notice. The Company will continue to work with Wells
Fargo bank to meet compliance with future modified loan covenants.
There can be no assurance that Wells Fargo will in the future
agree to modify or waive any of the loan covenants or waive any of
its rights or remedies under the Credit Agreement.
As of October 3, 2010, the Company had $387,662 in cash and cash
equivalents on hand. The Company currently plans to use the cash
balance and any cash generated from operations for its working
capital needs in fiscal 2010. If Wells Fargo were to accelerate
the revolving credit payable, the Company would need additional
financing and it does not currently have a source for the
financing.
A full-text copy of the Company's Form 10-Q is available for free
at http://ResearchArchives.com/t/s?6ff3
Mexican Restaurants, Inc., operates and franchises Mexican-theme
restaurants featuring various elements associated with the casual
dining experience under the names Casa Ole, Monterey's Little
Mexico, Tortuga Coastal Cantina and Crazy Jose's. The Company
also operates fast casual burrito restaurants under the name
Mission Burrito. At October 3, 2010, the Company operated 55
restaurants, franchised 16 restaurants and licensed one restaurant
in various communities in Texas, Louisiana and Oklahoma. During
the second quarter of 2010 one underperforming Casa Ole franchise
location was closed.
MOMENTIVE PERFORMANCE: 99.48% to 99.99% of Sr. Notes Tendered
-------------------------------------------------------------
Momentive Performance Materials Inc. completed of its tender
offers to purchase any and all of its outstanding 9.75% Senior
Notes due 2014, 9.00% Senior Notes due 2014 and 10.125% / 10.875%
Senior Toggle Notes due 2014.
The Tender Offers expired on November 19, 2010. As previously
announced, the Company received tenders from the holders of:
i) $450,592,000 aggregate principal amount of their 2006
9.75% Notes,
ii) EUR155,611,000 aggregate principal amount of their 2006
9.00% Notes, and
iii) $74,792,167 aggregate principal amount of their Senior
Toggle Notes by the expiration of the early tender
payment deadline, November 4, 2010 at 5:00 p.m., New York
City time.
After the Early Tender Date and prior to the Expiration Date, the
Company received additional tenders from the holders of EUR165,000
aggregate principal amount of their 2006 9.00% Notes and $615
aggregate principal amount of their Senior Toggle Notes. The
tenders received by the Company for each series of Notes, together
with the $234.3 million principal amount of the 2006 9.75% Notes,
EUR88.2 million principal amount of the 2006 9.00% Notes, and
$139.4 million principal amount of the Senior Toggle Notes owned
by Apollo Management, L.P., which principal amounts were exchanged
by Apollo, represent in the aggregate approximately 95.58% of the
2006 9.75% notes, 99.48% of the 2006 9.00% Notes and 99.99% of the
Senior Toggle Notes.
Apollo entered into an agreement to exchange the entire amount of
its holdings of each series of Notes for new debt of the Company
at an exchange ratio determined based on the tender consideration
offered to holders of the Notes, and intended to give Apollo an
aggregate value equivalent to that which it would receive if it
had received the total consideration in the Tender Offers and used
the proceeds thereof to invest in such new debt. The new debt has
the same terms as the new notes issued by the Company to finance
the Tender Offers. On November 5, 2010 the Company accepted for
early payment, and paid for, the Notes tendered prior the Early
Tender Date.
The complete terms and conditions of the Tender Offers for the
Notes are detailed in the Company's Offer to Purchase dated
October 22, 2010 and the related Letter of Transmittal. The
Company currently expects to accept for payment, subject to
conditions set forth in the Tender Offer Documents, all of the
Notes validly tendered after the Early Tender Date and prior to
the Expiration Date on Monday, November 22, 2010.
Each holder who validly tendered its Notes after the Early Tender
Date and before the Expiration Date will receive, if such Notes
are accepted for purchase pursuant to the Tender Offers, the total
consideration of:
1) $1,043.75 per $1,000 principal amount of 2006 9.75% Notes
tendered,
2) EUR1,040.00 per EUR1,000 principal amount of 2006 9.00%
Notes tendered; and
3) $1,046.25 per $1,000 principal amount of Senior Toggle
Notes tendered.
In addition, accrued interest up to, but not including, the
applicable payment date of the Notes will be paid in cash on all
validly tendered and accepted Notes. The Company intends to
redeem the Notes that remain outstanding after completion of the
Tender Offers at the applicable redemption prices, plus accrued
and unpaid interest.
The Company engaged Citigroup Global Markets Inc., Credit Suisse
Securities (USA) LLC and J.P. Morgan Securities LLC to act as
Dealer Managers in connection with the tender offers for the 2006
9.75% Notes and Senior Toggle Notes, and Citigroup, Credit Suisse
and J.P. Morgan Securities Ltd. to act as Dealer Managers in
connection with the tender offer for the 2006 9.00% Notes.
About Momentive Performance
Momentive Performance Materials, Inc., is a producer of silicones
and silicone derivatives, and is engaged in the development and
manufacture of products derived from quartz and specialty
ceramics. As of Dec. 31, 2008, the Company had 25 production
sites located worldwide, which allows it to produce the majority
of its products locally in the Americas, Europe and Asia.
Momentive's customers include companies in industries, such as
Procter & Gamble, 3M, Goodyear, Unilever, Saint Gobain, Motorola,
L'Oreal, BASF, The Home Depot and Lowe's.
The Company's balance sheet at Sept. 26, 2010, showed
$3.33 billion in total assets, $3.83 billion in total liabilities,
and a stockholders' deficit $497.78 million.
Momentive carries a 'B3' corporate family and probability of
default ratings from Moody's Investors Service. It has 'B-'
issuer credit ratings from Standard & Poor's Ratings Services.
MOMENTIVE SPECIALTY: 90.52% of Second Lien Notes Tendered
---------------------------------------------------------
Momentive Specialty Chemicals Inc. completed its tender offer to
purchase any and all of the outstanding 9.75% Second-Priority
Senior Secured Notes due 2014.
The Tender Offer expired at 11:59 p.m., New York City time, on
November 19, 2010. As previously announced, the Company received
tenders from the holders of $355,241,000 aggregate principal
amount of the Notes by the expiration of the early tender payment
deadline, November 4, 2010 at 5:00 p.m., New York City time.
The tenders received by the Company for the Notes, together with
the $127 million principal amount of the Notes owned by Apollo
Management, L.P., which principal amount was exchanged by Apollo,
represent in the aggregate approximately 90.52% of the Notes.
Apollo entered into an agreement to exchange the entire amount of
its holdings of Notes for new debt of the Company at an exchange
ratio determined based on the tender consideration offered to
holders of the Notes, which is intended to give Apollo an
aggregate value equivalent to that which it would receive if it
had received the total consideration in the Tender Offer and used
the proceeds thereof to invest in the new debt. T he new debt has
the same terms as the new notes issued by the Company to finance
the Tender Offer.
On November 5, 2010 the Company accepted for early payment, and
paid for, the Notes tendered prior the Early Tender Date. No
additional Notes were tendered from the Early Tender Date to the
Expiration Date. The Company intends to redeem the Notes that
remain outstanding after completion of the Tender Offer at the
applicable redemption price, plus accrued and unpaid interest.
The Company engaged Citigroup Global Markets Inc., Credit Suisse
Securities (USA) LLC and J.P. Morgan Securities LLC to act as
Dealer Managers in connection with the tender offer for the Notes.
About Momentive Specialty
Momentive Specialty Chemicals, Inc., headquartered in Columbus,
Ohio, is a leading producer of thermoset resins (epoxy,
formaldehyde and acrylic). The company is also a supplier of
specialty resins for inks and specialty coatings sold to a diverse
customer base as well as a producer of commodities such as
formaldehyde, bisphenol A, epichlorohydrin, versatic acid and
related derivatives.
The Company's balance sheet at Sept. 30, 2010, showed
$3.22 billion in total assets, $5.20 billion in total liabilities,
and a stockholder's deficit of $1.99 billion.
Momentive Specialty carries a 'B-' issuer credit rating from
Standard & Poor's Ratings Services. It has 'B3' corporate family
and probability of default ratings from Moody's Investors Service.
corporate credit rating from Standard & Poor's.
MOUNTAIN PROVINCE: Shareholders Elect 7 Directors
-------------------------------------------------
Mountain Province Diamonds Inc. reported the election of the these
nominees as directors of the corporation for the ensuing year:
a) Jonathan Comerford
b) Patrick Evans
c) Elizabeth J. Kirkwood
d) Carl Verley
e) David Whittle
f) D.H.W. Dobson
g) Peeyush Varshney
The Company also reported the reappointment of KPMG LLP, Chartered
Accountants, as Carried Auditors of the Corporation to hold office
until the next general meeting of the shareholders and to
authorize the directors to fix the auditor's remuneration.
About Mountain Province
Headquartered in Toronto, Canada, Mountain Province Diamonds Inc.
(TSX: MPV, NYSE AMEX: MDM) -- http://www.mountainprovince.com/--
is a Canadian resource company in the process of permitting and
developing a diamond deposit (the "Gahcho Kue Project" located in
the Northwest Territories of Canada. The Company's primary asset
is its 49% interest in the Gahcho Kue Project.
The Company's balance sheet as of June 30, 2010, showed
C$95.8 million in total assets, C$13.9 million in total
liabilities, and stockholders' equity of C$81.9 million.
* * *
In its Management's Discussion and Analysis of the Company's
interim consolidated financial statements for the three months
ended June 30, 2010, the Company said its ability to continue as a
going concern and to realize the carrying value of its assets and
discharge its liabilities is dependent on the discovery of
economically recoverable mineral reserves, the ability of the
Company to obtain necessary financing to fund its operations, and
the future production or proceeds from developed properties.
However, the Company adds that there is no certainty that the
Company will be able to obtain financing to fund its operations.
As a result, the Company says, there is substantial doubt as to
its ability to continue as a going concern.
MPG OFFICE: New CEO to Focus Restructuring on Downtown L.A.
-----------------------------------------------------------
MPG Office Trust Inc. has appointed David L. Weinstein as
President and Chief Executive Officer, effective immediately.
Mr. Weinstein has served as an independent director on the
Company's Board since August 2008 and served as a member of the
Audit Committee and Nominating and Corporate Governance Committee
until his appointment as President and Chief Executive Officer.
Mr. Weinstein also currently serves, and will continue to serve,
on the Company's Finance Committee.
Chairman of the Board, Paul M. Watson, commented: "We are
extremely pleased to announce David's appointment as President and
Chief Executive Officer. David has relevant and extensive real
estate experience and investment banking expertise and has been an
active, engaged and productive member of the Board since his
appointment more than two years ago. He has provided critical
guidance to the Company on complex real estate, corporate finance
and strategic matters in his role as a director and member of the
Finance Committee. His involvement to date combined with his
hands-on approach will result in an effective transition into his
role as Chief Executive Officer. David is highly respected and
fully supported by the Company's Board and senior management team
in his new role."
Mr. Weinstein currently serves as a partner at Belvedere Capital,
a real estate investment firm based in New York. Prior to that,
he was a Managing Director of Westbridge Investment Group, a real
estate investment fund focused on hospitality. From 1996 to 2007,
Mr. Weinstein worked at Goldman Sachs & Co., initially in the real
estate investment banking group, and from 2004 to 2007, in the
Special Situations Group focused on real estate debt investments.
Mr. Weinstein holds a Bachelor of Science degree in Economics,
magna cum laude, from the Wharton School and a Juris Doctor, cum
laude, from the University of Pennsylvania Law School.
Additionally, the Company has engaged Mr. Frederick E. Chin and
his firm Atalon Management Group, LLC to provide restructuring
advice to the Company. Most recently, Mr. Chin led efforts to
restructure and resolve various loan and other obligations
associated with Lake Las Vegas, a 3,600 acre master planned
community in Henderson, Nevada. The assignment involved a highly
complex real estate and multi-creditor endeavor. Over his 30 year
career, Mr. Chin has advised public and private real estate
companies, investment banks, estates, private equity firms,
creditors, pension funds and insurance companies on a variety of
complex real estate matters throughout the United States. Mr.
Chin is a former partner of Ernst and Young LLP and was a
principal with Kenneth Leventhal and Company in Los Angeles. Mr.
Chin was both firms' national subject matter expert in real estate
and hospitality valuation, financial feasibility and litigation
matters.
As previously announced the Company has been focused on reducing
debt, eliminating repayment and debt service guarantees, extending
debt maturities and disposing of properties with negative cash
flow. The first phase of the Company's restructuring efforts is
substantially complete and resulted in the resolution of 18
assets, relieving the Company of approximately $2.0 billion of
debt obligations and potential guaranties of approximately
$150 million.
Under the leadership of Mr. Weinstein, the next phase of the
restructuring efforts will focus on the Company's core Downtown
Los Angeles properties and will include proactively working with
lenders and special servicers in an effort to reduce the Company's
leverage, extend debt maturities, maintain appropriate funds for
value-creating leasing and capital expenditures and ensure
adequate cash flow with respect to these properties.
About MPG Office Trust
MPG Office Trust Inc. is a self-administered and self-managed real
estate investment trust. It is the largest owner and operator of
Class A office properties in the Los Angeles Central Business
District and are primarily focused on owning and operating high-
quality office properties in the high-barrier-to-entry Southern
California market.
The Company's balance sheet at Sept. 30, 2010, showed
$3.26 billion in total assets, $4.16 billion in total liabilities,
and a stockholder's deficit of $897.21 million.
MSGI SECURITY: Reports $914,500 Net Profit in Third Quarter
-----------------------------------------------------------
MSGI Security Solutions Inc. filed its quarterly report on Form
10-Q, reporting net income of $914,574 on zero revenue for the
three months ended Sept. 30, 2010, compared with a net loss of
$3.25 million on zero revenue for the same period a year ago.
The Company posted net income despite zero revenues because of a
"gain on change in derivative liability" in both quarters.
The Company's balance sheet at Sept. 30, 2010, showed $567,713 in
total assets, $25.76 million in total liabilities, and a
stockholders' deficit of $25.20 million.
A full-text copy of the quarterly report on Form 10-Q is available
for free at http://ResearchArchives.com/t/s?6fd6
About MSGI Security
MSGI Security Solutions, Inc. (Other OTC: MSGI) --
http://www.msgisecurity.com/-- is a provider of proprietary
solutions to commercial and governmental organizations. The
Company is developing a global combination of innovative emerging
businesses that leverage information and technology. The Company
is headquartered in New York City where it serves the needs of
counter-terrorism, public safety, and law enforcement and is
developing new technologies in nanotechnology and alternative
energy as a result of its recently formed relationship with The
National Aeronautics and Space Administration.
Amper, Politziner & Mattia, LLP, in Edison, New Jersey, expressed
substantial doubt about MSGI Security Solutions, Inc.'s ability to
continue as a going concern after auditing the Company's
consolidated financial statements for the years ended June 30,
2009, and 2008. The auditing firm reported that the Company has
suffered recurring losses from operations, and negative cash flows
from operations, and has a substantial amount of notes payable due
on demand or within the next 12 months and has very limited
capital resources.
NEW LEAF: Lowers Net Loss to $1.62-Mil. in Q3 of 2010
-----------------------------------------------------
New Leaf Brands Inc. filed its quarterly report on Form 10-Q,
reporting a net loss of $1.62 million on $1.05 million of net
sales for the three months ended Sept. 30, 2010, compared with a
net loss of $4.82 million on $1.02 million of net sales for the
same period a year ago.
The Company's balance sheet at Sept. 30, 2010, showed $5.31
million in total assets, $8.34 million in total liabilities, and a
stockholders' deficit of $3.03 million.
A full-text copy of the quarterly report on Form 10-Q is available
for free at http://ResearchArchives.com/t/s?6fd9
About New Leaf Brands
Scottsdale, Ariz.-based New Leaf Brands, Inc. develops, markets
and distributes healthy and functional ready-to-drink teas under
the New Leaf(R) brand.
According to the Troubled Company Reporter on April 8, 2010, Mayer
Hoffman McCann P.C., in Phoenix, Ariz., following the Company's
2009 results, expressed substantial doubt about the Company's
ability to continue as a going concern. The independent auditors
noted that the Company has suffered recurring losses from
operations, has a working capital deficiency, was not in
compliance with certain financial covenants related to debt
agreements, and has a significant amount of debt maturing in 2010.
NORTHSIDE TOWER: Real Property Sale Cuts Unsecured Claims by $4MM
-----------------------------------------------------------------
Northside Tower Realty, LLC, submitted to the U.S. Bankruptcy
Court for the Eastern District of New York a proposed Plan of
Reorganization and an explanatory Disclosure Statement.
The Debtors will begin soliciting votes on the Plan following
approval of the adequacy of the information in the Disclosure
Statement.
According to the Disclosure Statement, upon the confirmation of
the Plan, North 6 Equity LLC (Class 1), and New York City
Department of Finance (Class 2) will be satisfied and the proceeds
of the litigation will hopefully generate a distribution to
general unsecured creditors and that is in addition to the
$250,000 to be paid at closing by Nobed 6 LLC. Nobed 6 LLC, is an
affiliate of North 6 Equity LLC.
By the sale of the real property to Nobed 6, the Debtor will
eliminate paying $3,500,000, which will result in a distribution
to Class 3 claimants. Nobed 6 agreed to waive a distribution to
its general unsecured claim but retains its right to vote as a
Class 3 claimant.
Class 3 general unsecured creditors to receive in the aggregate
sum generated from the sale of the Debtor's real property after
satisfaction of the claims, after payment of necessary legal fees
and costs.
The Plan also contemplates for the Debtor's shareholders to
provide new value to the Debtor to retain their interests. The
new value is necessary for an effective reorganization,
substantial monies or monies worth (not future labor, goodwill,
ets.) and equivalent to the value of the property to be retained.
No distributions will be made to Class 4 claimants until all
allowed Claim 3 claimants are paid in full. Class 4 are insider
claims of M&W Provisions, an affiliate of the Debtor, and Paul
Vallario and Anthony Ciuffo.
Common stock will canceled. The Reorganized Northside will issued
100% of the stock to Paul Vallario and Anthony Ciuffo.
A full-text copy of the Disclosure Statement is available for free
at http://bankrupt.com/misc/NorthsideTower_DS.pdf
About Northside Tower Realty, LLC
Ridgewood, New York-based Northside Tower Realty, LLC, filed for
Chapter 11 bankruptcy protection on March 15, 2010 (Bankr.
E.D.N.Y. Case No. 10-42080). Marc A. Pergament, Esq., at Weinberg
Gross & Pergament LLP, represents the Debtor. The Company
disclosed $17,100,160 in assets and $28,096,953 in liabilities as
of the Petition Date.
OPEN SOLUTIONS: Bank Debt Trades at 16% Off in Secondary Market
---------------------------------------------------------------
Participations in a syndicated loan under which Open Solutions,
Inc., is a borrower traded in the secondary market at 84.35 cents-
on-the-dollar during the week ended Friday, November 26, 2010,
according to data compiled by Loan Pricing Corp. and reported in
The Wall Street Journal. This represents a drop of 0.45
percentage points from the previous week, The Journal relates.
The Company pays 212.50 basis points above LIBOR to borrow under
the facility. The bank loan matures on January 18, 2014, and
carries Moody's B1 rating and Standard & Poor's BB- rating. The
loan is one of the biggest gainers and losers among 192 widely
quoted syndicated loans with five or more bids in secondary
trading for the week ended Friday.
Headquartered in Glastonbury, Connecticut, Open Solutions, Inc.,
is a privately-held provider of core data processing and
information management software solutions for financial
institutions including community banks / thrifts and credit
unions. In January 2007, the company was acquired by The Carlyle
Group and Providence Equity Partners in a leveraged transaction of
roughly $1.4 billion including the assumption of debt. Revenues
for the last twelve-month period ended September 2008 was $438
million.
OSI RESTAURANT: Bank Debt Trades at 6% Off in Secondary Market
--------------------------------------------------------------
Participations in a syndicated loan under which OSI Restaurant
Partners, Inc., is a borrower traded in the secondary market at
94.09 cents-on-the-dollar during the week ended Friday, November
26, 2010, according to data compiled by Loan Pricing Corp. and
reported in The Wall Street Journal. This represents a drop of
0.44 percentage points from the previous week, The Journal
relates. The Company pays 225 basis points above LIBOR to borrow
under the facility. The bank loan matures on May 9, 2014, and
carries Moody's B3 rating and Standard & Poor's B+ rating. The
loan is one of the biggest gainers and losers among 192 widely
quoted syndicated loans with five or more bids in secondary
trading for the week ended Friday.
About OSI Restaurant
OSI Restaurant Partners, Inc., is the #3 operator of casual-dining
spots (behind Darden Restaurants and Brinker International), with
more than 1,400 locations in the U.S. and 20 other countries. Its
flagship Outback Steakhouse chain boasts more than 950 locations
that serve steak, chicken, and seafood in Australian-themed
surroundings. OSI also operates the Carrabba's Italian Grill
chain, with about 240 locations. Other concepts include Bonefish
Grill, Fleming's Prime Steakhouse, and Cheeseburger In Paradise.
Most of the restaurants are company owned. A group led by
Chairman Chris Sullivan took the company private in 2007.
The Company's balance sheet at June 30, 2010, showed $2.34 billion
in total assets, $2.450 billion in total liabilities, and a
deficit of $106.2 million.
OSI Restaurant carries 'Caa1' corporate family and probability of
default ratings, with "stable" outlook, from Moody's Investors
Service. It has 'B-' issuer credit ratings, with stable outlook,
from Standard & Poor's.
PACIFIC SAFETY: Dec. 22 Shareholder Meeting Set for Zuni Merger
---------------------------------------------------------------
Pacific Safety Products Inc. provided an update on its merger with
Zuni Holdings Inc. by way of a court-approved plan of arrangement
of Zuni under the Business Corporations Act (Ontario). Zuni and
PSP entered into an arrangement agreement as of November 17, 2010.
The joint management information circular for the meetings of PSP
and Zuni shareholders to approve the Merger has been mailed to PSP
shareholders of record and has been filed with the Canadian
provincial securities authorities. The Board of Directors of PSP
has approved the Merger and recommends that PSP shareholders vote
in favor of the resolution approving the Merger at the meeting.
Those meetings will be held in Arnprior, Ontario, on December 22,
2010.
The issuance of PSP shares pursuant to the arrangement must be
approved by a majority of the arm's-length shareholders of PSP
voting on the resolution. PSP shareholders, including certain non-
arm's-length shareholders, holding approximately 29% of the
outstanding PSP shares have entered into voting agreements
supporting the Merger (19% of which can be voted to approve
issuance of PSP shares in furtherance of the Arrangement). Zuni
shareholders holding approximately 35% of the outstanding Zuni
shares have entered into voting agreements supporting the Merger.
On November 18, 2010, Zuni obtained an interim order from the
Ontario Superior Court approving, among other things, the holding
of a meeting of Zuni shareholders to consider the Merger. The
hearing before the Ontario Superior Court of Justice to approve
the plan of arrangement of Zuni to give effect to the Merger is
scheduled for December 29, 2010. In the event PSP shareholders
and Zuni shareholders approve the Merger and the Ontario Superior
Court approves the plan of arrangement of Zuni giving effect to
the Merger, it is anticipated that the Merger would close on or
about December 31, 2010.
Zuni has no material assets other than cash on hand and restricted
cash in escrow and no material business activities.
Klein Farber Corporate Finance Inc. provided fairness opinions in
respect of the arrangement to the boards of directors of both PSP
and Zuni. PSP's legal advisors are Farris, Vaughan, Wills &
Murphy LLP and Zuni's legal advisors are Wildeboer Dellelce LLP.
As reported by the Troubled Company Reporter on November 2, 2010,
PSP on October 20 said it had signed a letter of intent to merge
with Zuni. PSP has agreed to acquire all of the outstanding
common shares of Zuni in exchange for PSP common shares at an
agreed exchange ratio of one PSP common share for each Zuni common
share. Following completion of the Merger, PSP will be owned
45.8% by current PSP shareholders and 54.2% by current Zuni
shareholders, based on the current shares issued and outstanding.
PSP also disclosed that its U.S. subsidiary, Sentry Armor Systems
Inc., has received an order worth more than US$2 million for its
tactical body armor. The body armor is sold under its GH
Armor(TM) brand and will be manufactured at the Company's plant in
Dover, Tennessee for delivery over the next three months.
PSP has launched its new NIJ.06-certified body armor product
lines, and has recently won contracts for its new LiteX IIIA and
LiteX II products with major police forces in British Columbia and
Ontario initially worth more than C$300,000 and with a follow on
value of over C$800,000 in the next year,
About PSP
Based in Kanata, Ontario, Pacific Safety Products Inc. (TSX
VENTURE: PSP) produces, distributes and sells safety products for
the defense and security market. The products include body armor
to protect against ballistic, stab and fragmentation threats,
ballistic blankets to reduce blast effects, and protective
products against chemical and biological hazards. The Company,
through its U.S. subsidiary Sentry Armor Systems Inc., provides
body armor products to U.S. based law enforcement and private
security firms. The Company also produces tactical clothing.
The Company signed a forbearance agreement with its principal
Canadian bank on August 17, 2010. Under the terms of the
Forbearance Agreement, additional general and financial covenants
have been placed on the Company. At September 30, 2009, December
31, 2009, March 31, 2010 and June 30, 2010, the Company did not
meet certain covenants as stipulated in its credit facility. In
particular, the Company did not achieve its target ratio of debt
to tangible net worth. The Bank has agreed, pursuant to the
Forbearance Agreement, not to take steps to realize under the
facility prior to February 28, 2011, unless a terminating event as
defined in the Forbearance Agreement occurs.
PSP has said there are no assurances that, if its arrangement with
Zuni Holdings Inc. is not completed, PSP will not breach its
forbearance agreement with its bankers or that the bankers will
grant further waivers of default.
PATRIOT NATIONAL: Committee Taps KPMG LLP as New Accountant
-----------------------------------------------------------
On November 17, 2010, the Audit Committee of the Board of
Directors of Patriot National Bancorp Inc. engaged KPMG LLP as its
new principal independent accountant and replaced McGladrey &
Pullen, LLP, its former principal independent accountant.
McGladrey's report on Patriot's financial statements for the
fiscal year ended December 31, 2008, did not contain an adverse
opinion or a disclaimer of opinion, and was not qualified or
modified as to uncertainty, audit scope or accounting principles.
McGladrey's report, dated March 15, 2010, relating to the audit of
Patriot's financial statements for the fiscal year ended December
31, 2009 included an emphasis paragraph relating to an uncertainty
as to Patriot's ability to continue as a going concern.
During Patriot's two most recently completed fiscal years and the
subsequent interim period preceding the replacement of McGladrey,
there were:
i) no disagreements with McGladrey on any matter of accounting
principles or practices, financial statement disclosure, or
auditing scope or procedure, which disagreement, if not
resolved to the satisfaction of McGladrey, would have
caused McGladrey to make reference to the subject matter of
the disagreement in connection with its report; and
ii) no reportable events as such term is defined in Item 304(a)
(1)(v) of Regulation S-K.
As reported in the Troubled Company Reporter on March 18, 2010,
McGladrey & Pullen, LLP, in New Haven, Conn., expressed
substantial doubt about the Company's ability to continue as a
going concern, following its 2009 results. The independent
auditors noted of the Company's net losses for 2009 and 2008 and
uncertainty about the Company's and Patriot National Bank's
ability to maintain compliance with regulatory capital
requirements. In February 2009, Patriot National Bank entered
into a formal written agreement with its primary regulator which
required the Bank to develop and maintain a capital plan.
About Patriot National Bancorp
Stamford, Conn.-based Patriot National Bancorp, Inc. (NASDAQ:
PNBK) is the parent company of Patriot National Bank, a national
banking association headquartered in Stamford, Fairfield County,
in Connecticut. Patriot National Bank has 19 full service
branches, 16 in Connecticut and three in New York.
PAX INDUSTRIES: Case Summary & 20 Largest Unsecured Creditors
-------------------------------------------------------------
Debtor: Pax Industries, Inc.
6485 Crescent Drive
Norcross, GA 30071
Bankruptcy Case No.: 10-95225
Chapter 11 Petition Date: November 24, 2010
Court: United States Bankruptcy Court
Northern District of Georgia (Atlanta)
Debtor's Counsel: Edward F. Danowitz, Jr., Esq.
DANOWITZ & ASSOCIATES, P.C.
300 Galleria Parkway, NW, Suite 960
Atlanta, GA 30339
Tel: (770) 933-0960
E-mail: edanowitz@danowitzlegal.com
Estimated Assets: $0 to $50,000
Estimated Debts: $1,000,001 to $10,000,000
A list of the Company's 20 largest unsecured creditors
filed together with the petition is available for free
at http://bankrupt.com/misc/ganb10-95225.pdf
The petition was signed by Louis Nappi, CEO.
PEARLAND SUNRISE: Cash Collateral Access Expires on November 30
---------------------------------------------------------------
The Hon. Craig A. Gargotta of the U.S. Bankruptcy Court for the
Western District of Texas previously entered an order authorizing
Pearland Sunrise Lake Village I, LP, to access cash collateral of
C-III Asset Management LLC, formerly known as Centerline
Servicing, Inc., as special servicer for the Note Holders. Absent
any further order by the bankruptcy court, the cash collateral use
will expire November 30, 2010.
As of the Petition Date, the Debtor is indebted to the noteholders
in the approximate amount of $13.65 million in unpaid principal,
plus accrued interest, any and all fees, obligations, and other
liabilities under the loan documents.
The Court's order also provided that all of the Debtor's excess
cash during pendency of its bankruptcy case, including any cash
held in any of the Debtor's other bank accounts, will be placed
and held in the Debtor's debtor-in-possession bank account at
Comerica Bank.
As adequate protection for any diminution in value of the lenders'
collateral, the Debtors will grant the noteholders replacement
liens upon all of the properties and assets of the Debtor, and a
superpriority administrative expense claim status.
As additional adequate protection, the Debtor will make these
adequate protection payments:
Amount of non- October 2010 November 2010 December 2010
default interest
---------------- ------------ ------------- ------------
A Note $59,622 $61,525 $59,467
B Note $8,748 $8,748 $8,748
Total $68,371 $70,273 $68,216
The Debtor will continue to maintain full insurance coverage,
including insurance for the collateral, in accordance with the
loan documents, to keep the collateral adequately insured.
About Pearland Sunrise Lake Village I, LP
Marble Falls, Texas-based Pearland Sunrise Lake Village I, LP, dba
SRLVI, filed for Chapter 11 bankruptcy protection on July 9, 2010
(Bankr. W.D. Tex. Case No. 10-11926). Frank B. Lyon, Esq., who
has an office in Austin, Texas, represents the Debtor. The
Company estimated assets and debts at $10 million to $50 million.
The Company's affiliate, Pearland Sunrise Lake Village II, LP, dba
SRLVII, filed a separate Chapter 11 petition on July 9, 2010 (Case
No. 10-11925), estimating assets and debts at $10 million to
$50 million.
PHOENIX FOOTWEAR: Posts $1.09MM Net Loss in October 2 Quarter
-------------------------------------------------------------
Phoenix Footwear Group, Inc., filed its quarterly report on Form
10-Q, reporting a net loss of $1,089,000 for the three months
ended October 2, 2010, compared with net earnings of $60,000 for
the three months ended October 3, 2009.
The Company's balance sheet at October 2, 2010, showed $10,837,000
in total assets, $6,760,000 in total liabilities, and $4,077,000
in stockholders' equity.
The Company reported net sales of $4,888,000 for the three months
ended October 2, 2010, compared with $5,453,000 for the three
months ended October 3, 2009.
The severe global recession has been challenging during the past
two years and has dramatically affected the Company's business as
it is dependent on consumer demand for its products. During this
time, the Company has faced significant working capital
constraints as the result of the decline in our sales,
expenditures, and obligations associated with its restructuring
and diminished borrowing capacity. These factors, together with
our net losses and negative cash flows during the past three
fiscal years, raise substantial doubt about the Company's ability
to continue as a going concern.
Based upon the Company's anticipated levels of sales and
operations, and so long as there is no default under its new
credit facility with Gibraltar Business Capital, the Company
believes it has sufficient liquidity from operations and advances
under its revolving line of credit, and if necessary, from working
capital management to meet its operating, working capital and
investment requirements for the next twelve months. The Company
cannot assure that it will achieve its overall goal or that the
targeted benefits from our restructuring actions will be adequate
in that regard. A continuation or worsening of the current
downturn in the economy may affect consumer purchases of the
Company's products and adversely impact its sales and
profitability. Accordingly, if the anticipated sales growth does
not materialize, the possibility exists that there may be
insufficient availability under the Company's revolving credit
facility for planned inventory purchases. In the absence of
increased sales levels, the Company may need to pursue a variety
of alternatives to avoid delayed or missed inventory shipments.
These alternatives include continuing to seek the reestablishment
of vendor financing and management of the Company's working
capital, including reducing its inventory purchases and
liquidating in-stock inventory by way of close out sales (which
would adversely impact gross margins).
A full-text copy of the Company's Form 10-Q is available for free
at http://ResearchArchives.com/t/s?6fee
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.
POINT BLANK: Wants to Sell Manufacturing Biz. for At Least $14MM
----------------------------------------------------------------
Point Blank Solutions, Inc., et al., ask the U.S. Bankruptcy Court
for the District of Delaware for authorization to auction
substantially all assets relating to their business.
The Debtors with the assistance of their financial advisor, CRG
Partners Group LLC, are marketing the Debtors' business assets
related to manufacturing and supplying bullet, fragmentation, and
stab resistant apparel and related ballistic accessories on an "AS
IS" basis. The purchase prize will be $14,000,000, unless
otherwise determined by the Debtors in their discretion.
The Debtors relate that they do not currently have a stalking
horse bidder for their assets.
The Debtors add that there is significant urgency to sell their
assets as their debtor-in-possession financing facility with Steel
Partners II, L.P. matures on December 31, 2010.
Under the DIP Facility, the Debtors are required to meet certain
sale milestones, including having a sale hearing by December 16
(the Debtors requested that the DIP lender extend the date to
December 17). The DIP lender has advised that no further
continuances of the maturity date will be provided. The Debtors
have no present alternative available to them to refinance the DIP
Facility or to effectuate a reorganization, absent the sale of
assets.
The DIP further add that the DIP lender is allowed to submit a
credit bid for the assets, subject to providing additional cash
consideration necessary to meet the bid requirements.
The Debtors will use the proceeds to pay the DIP lender, in part,
with the remaining proceeds to be retained by the Debtors'
estates.
The Debtor also ask the Court to approve the sale-related dates:
Bid Deadline December 13 at 12:00 p.m.
Objection Deadline December 14 at 12:00 p.m.
Auction December 15 at 10:00 a.m.
Sale Hearing December 17 at 9:30 a.m.
Sale Closing December 27
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, as well as select international markets.
The Company maintains facilities in Pompano Beach, Florida, and
Jacksboro, Tennessee.
The Company's former chief executive officer and chief operating
officer were convicted in September 2010 of orchestrating a
$185 million fraud.
Point Blank Solutions, formerly DHB Industries, filed for
Chapter 11 protection 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. Epiq Bankruptcy Solutions
serves as claims and notice agent.
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. Robert M. Hirsh,
Esq., and Heike M. Vogel, Esq., at Arent Fox LLP, serve as counsel
to the Creditors Committee, and Frederick B. Rosner, Esq., and
Brian L. Arban, Esq., at Messana Rosner & Stern LLP, serve as co-
counsel.
POLI-GOLD LLC: Gets OK to Hire Engelman Berger as Bankr. Counsel
----------------------------------------------------------------
Poli-Gold, L.L.C., sought and obtained authorization from the Hon.
Randolph J. Haines of the U.S. Bankruptcy Court for the District
of Arizona to employ Engelman Berger, P.C., as bankruptcy counsel.
Engelman Berger has agreed to, among other things:
a. attend meetings and negotiating with representatives of
creditors and other parties-in-interest and advise and
consult on the conduct of this bankruptcy case, including
all of the legal and administrative requirements of
operating in Chapter 11;
b. assist the Debtor with the preparation of its Schedules of
Assets and Liabilities and Statements of Financial
Affairs;
c. advise the Debtor with respect to any contemplated sales
of assets and business combinations, formulating and
implementing appropriate closing procedures for the
transactions, and preparing and prosecuting all motions
and pleadings necessary to obtain the Court's
authorization for such transactions; and
d. advise the Debtor with respect to any post-petition
financing and cash collateral arrangements; negotiating,
drafting and prosecuting all documents, motions and
pleadings relating thereto.
Engelman Berger will be paid based on the rates of its
professionals:
David Wm. Engelman $425
Steven N. Berger $425
Other EB Partners $325-$375
EB Associates $225-$285
EB Paralegals $165
To the best of the Debtor's knowledge, Engelman Berger is a
"disinterested person" as that term defined in Section 101(14) of
the Bankruptcy Code.
Fort Mohave, Arizona-based Poli-Gold, LLC, owns a cabin and RV
resort in Panguitch, Utah. It also owns a commercial
building/warehouse/storage facility in Fort Mohave, Arizona, as
well as a commercial property in Lake Havasu City, Arizona, and
some vacant lots in Kingman, Arizona.
Poli-Gold filed for Chapter 11 bankruptcy protection on
November 17, 2010 (Bankr. D. Ariz. Case No. 10-37018). The Debtor
estimated its assets and debts at $10 million to $50 million.
POLI-GOLD LLC: Section 341(a) Meeting Scheduled for Jan. 7
----------------------------------------------------------
The U.S. Trustee for Region 14 will convene a meeting of
Poli-Gold, L.L.C.'s creditors on January 7, 2011, at 11:00 a.m.
The meeting will be held at the U.S. Trustee Meeting Room, City
Council Chambers, 201 South Cortez, Prescott, AZ.
This is the first meeting of creditors required under Section
341(a) of the U.S. Bankruptcy Code in all bankruptcy cases.
All creditors are invited, but not required, to attend. This
Meeting of Creditors offers the one opportunity in a bankruptcy
proceeding for creditors to question a responsible office of the
Debtor under oath about the company's financial affairs and
operations that would be of interest to the general body of
creditors.
Fort Mohave, Arizona-based Poli-Gold, LLC, filed for Chapter 11
bankruptcy protection on November 17, 2010 (Bankr. D. Ariz. Case
No. 10-37018). David WM Engelman, Esq., at Engelman Berger, P.C.,
assists the Debtor in its restructuring effort. The Debtor
estimated its assets and debts at $10 million to $50 million.
POLI-GOLD LLC: Files List of 3 Largest Unsecured Creditors
----------------------------------------------------------
Poli-Gold, L.L.C., has filed with the U.S. Bankruptcy Court for
the District of Arizona a list of its three largest unsecured
creditors:
Entity Nature of Claim Claim Amount
------ --------------- ------------
Campbell, Jones & Co.
7848 W. Sahara Avenue
Las Vegas, NV 89117 Tax Services $2,300
Auto Owners Insurance
P.O. Box 303015
Lansing, MI 48909 Property Insurance $551
The Hartford Insurance Co.
P.O. Box 2907
Hartford, CT 06104-2907 Auto Insurance $460
Fort Mohave, Arizona-based Poli-Gold, LLC, owns a cabin and RV
resort in Panguitch, Utah. It also owns a commercial
building/warehouse/storage facility in Fort Mohave, Arizona, as
well as a commercial property in Lake Havasu City, Arizona, and
some vacant lots in Kingman, Arizona.
Poli-Gold filed for Chapter 11 bankruptcy protection on
November 17, 2010 (Bankr. D. Ariz. Case No. 10-37018). David WM
Engelman, Esq., at Engelman Berger, P.C., assists the Debtor in
its restructuring effort. The Debtor estimated its assets and
debts at $10 million to $50 million.
RADIANT OIL: Posts $1.2 Million Net Loss in September 30 Quarter
----------------------------------------------------------------
Radiant Oil & Gas, Inc., filed its quarterly report on Form 10-Q,
reporting a net loss of $1.18 million on $48,506 of revenue for
the three months ended September 30, 2010, compared with a net
loss of $288,975 on $22,979 of revenue for the corresponding
period last year.
The Company's balance sheet at September 30, 2010, showed
$3.27 million in total assets, $6.85 million in total liabilities,
and a stockholders' deficit of $3.58 million.
"The Company had a working capital deficit of $5.99 million and an
accumulated deficit of $4.70 million as of September 30, 2010.
These factors which raise substantial doubt about our ability to
continue as a going concern," the Company said in the filing.
A full-text copy of the Form 10-Q is available for free at:
http://researcharchives.com/t/s?6fc3
Houston, Tex.-based Radiant Oil & Gas, Inc., seeks to develop,
produce, and acquire oil and natural gas properties along the Gulf
Coasts of Texas and Louisiana and on the Outer Continental Shelf
of the United States.
REALOGY CORP: Bank Debt Trades at 7% Off in Secondary Market
------------------------------------------------------------
Participations in a syndicated loan under which Realogy Corp. is a
borrower traded in the secondary market at 92.54 cents-on-the-
dollar during the week ended Friday, November 26, 2010, according
to data compiled by Loan Pricing Corp. and reported in The Wall
Street Journal. This represents a drop of 0.50 percentage points
from the previous week, The Journal relates. The Company pays 300
basis points above LIBOR to borrow under the facility. The bank
loan matures on September 30, 2013, and carries Moody's B1 rating
and Standard & Poor's CCC- rating. The loan is one of the biggest
gainers and losers among 192 widely quoted syndicated loans with
five or more bids in secondary trading for the week ended Friday.
About Realogy Corp.
Realogy Corp. -- http://www.realogy.com/-- a global provider of
real estate and relocation services with a diversified business
model that includes real estate franchising, brokerage, relocation
and title services. Realogy's world-renowned brands and business
units include Better Homes and Gardens Real Estate, CENTURY 21,
Coldwell Banker, Coldwell Banker Commercial, The Corcoran Group,
ERA, Sotheby's International Realty, NRT LLC, Cartus and Title
Resource Group. Collectively, Realogy's franchise systems have
around 15,000 offices and 270,000 sales associates doing business
in 92 countries around the world.
Headquartered in Parsippany, N.J., Realogy is owned by affiliates
of Apollo Management, L.P., a leading private equity and capital
markets investor. Realogy fully supports the principles of the
Fair Housing Act.
The Company's balance sheet at Sept. 30, 2010, showed
$2.67 billion in total assets, $9.14 billion in total liabilities,
and a stockholder's deficit of $981.0 million.
Realogy carries a 'CC' corporate credit rating with a "developing"
outlook from Standard & Poor's. S&P noted that leverage was high,
at 15x at March 2010, although this was an improvement compared to
20x one year ago.
It has 'Caa2' corporate family and probability of default ratings,
with negative outlook, from Moody's.
REMINGTON RANCH: Plan Confirmation Hearing Set for March 7
----------------------------------------------------------
The U.S. Bankruptcy Court for the District of Oregon will convene
a hearing on March 7, 2011, at 9:30 a.m., to consider confirmation
of Remington Ranch, LLC's proposed Plan of Reorganization, as
amended four times.
Any objections to the plan, and written ballots accepting or
rejecting are due seven days before the hearing date.
As reported in the Troubled Company Reporter on September 30, the
Plan provides for the completion of Phase I, which includes 192
single family lots and a number of overnight units to allow
recordation of the plat, the Wicked Pony Golf Course, the sales
center, and a system of lakes and streams, along with the
supporting infrastructure located on approximately 770 acres in
the southern portion of the property.
Secured creditors will be paid, over time, the full amount of the
Allowed Secured Claim of each from the proceeds from lot sales.
Unsecured Creditors will also be paid the full amount of the
Allowed Unsecured Claim of each from the proceeds of lot sales.
Secured and Unsecured creditors will be paid after the Bridge Loan
and Construction Loan debt are fully retired.
When the Debtor has paid the Bridge Loan and Construction Loan in
full, the Reorganized Debtor will begin funding the Secured
Creditors' Pool by paying 80% of the net lot sale proceeds. This
percentage will remain in effect until the Secured Creditors have
been paid 75% of the Allowed Secured Claim of each. The
Reorganized Debtor will not begin funding the Unsecured Creditors'
Pool (at 50% of the net lot proceeds) until the Columbia State
Bank has been paid in full and the remainder of the Secured
Creditors have been paid not less than 75% of the Allowed Secured
Claim of each. All General Unsecured Creditors will be paid pro
rata from the Unsecured Creditor Pool.
If a Plan is confirmed, and construction begins in the 2011, the
Debtor intends for the first closings of lot sales to begin in the
second quarter of 2012. The timing of payment to creditors will
depend upon the amount of claims allowed and the priority of
claims. Allowed Claims would be satisfied by the first quarter of
2015. Therefore, unsecured creditors would expect to be paid in
2014-2015.
A full-text copy of the Fourth Amended Plan is available for free
at http://bankrupt.com/misc/RemingtonRanch4thAmendedPlan.pdf
About Remington Ranch, LLC
Powell Butte, Oregon-based Remington Ranch, LLC, is a property
developer. The Company filed for Chapter 11 bankruptcy protection
on January 21, 2010 (Bankr. D. Ore. Case No. 10-30406). Attorneys
at Cable Huston Benedict Haagensen & Lloyd LLP represents the
Debtor. The Debtor disclosed $29,298,544 in assets and
$32,453,284 in liabilities as of the Petition Date.
ROBERT FIELDS: Voluntary Chapter 11 Case Summary
------------------------------------------------
Debtor: Robert C. Fields, M.D.
12917 Equestrian Trail
Davie, FL 33330
Tel: (954) 436-8602
Bankruptcy Case No.: 10-46061
Chapter 11 Petition Date: November 24, 2010
Court: United States Bankruptcy Court
Southern District of Florida (Fort Lauderdale)
Judge: Raymond B. Ray
Debtor's Counsel: Frank R Brady, Esq.
BRADY & BRADY, P.A.
370 Camino Gardens Blvd # 200 C
Boca Raton, FL 33432
Tel: (561) 338-9256
E-mail: bradyandbradylaw@bellsouth.net
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
The Debtor did not file a list of its largest unsecured creditors
together with its petition.
ROBERT GILBERT: Promises to Pay Creditors From Personal Salary
--------------------------------------------------------------
Robert Clark Gilbert submitted to the U.S. Bankruptcy Court for
the Northern District of Georgia a proposed Plan of Reorganization
and an explanatory Disclosure Statement.
The Debtor will begin soliciting votes on the Plan following
approval of the adequacy of the information in the Disclosure
Statement.
According to the Disclosure Statement, the Plan proposes to
maximize the value of the Debtor's assets by paying all of his
creditors in full by: (i) contributing his personal salary to pay
creditors, consisting of that portion of his personal salary of
$35,000 as his projected disposable earnings over the next 12
months after confirmation of the Plan ; (ii) transferring of the
Sewer Lift Station to the secured creditor First Citizens Bank and
Trust Company, Inc.; and (iii) paying all his remaining creditors
in full over 12 months.
Under the Plan, Class 2 - Unsecured Claims of Russel Ventures (the
Debtor's employer) and Charles E. Glover, DDS (his dentist) - will
be paid in full over the next 12 months from the Debtor's
projected disposable net income, bonuses and commissions after
payment of Class 1 Claims.
Class 3 - Insider Claims of Mrs. Gilbert, and William A. Frees
(father-in-law) - will be paid in full by agreement with the
Debtor.
The claims of Dennis W. and Penny A. Davis will be determined by
the superior Court of Paulding County, and the remaining allowed
claim, if any, will be paid, in full, as other Class 2 claims, if
not satisfied by agreement, settlement or by other third party
defendants in the case.
The Debtor proposes that the secured claims of the Georgian Bank
and One West Bank will be paid in full.
A full-text copy of the Disclosure Statement, as amended, is
available for free at:
http://bankrupt.com/misc/RobertClarkGilbert_AmendedDS.pdf
About Robert Clark Gilbert
Acworth, Georgia-based Robert Clark Gilbert filed for Chapter 11
bankruptcy protection on March 15, 2010 (Bankr. N.D. Ga. Case No.
10-41047). Joseph J. Burton, Jr., Esq., who has an office in
Atlanta, Georgia, represents the Debtor. The Debtor disclosed
$11,719,750 in assets and $5,184,542 in liabilities as of the
Petition Date.
ROBINO-BAY COURT: Files Schedules of Assets and Liabilities
-----------------------------------------------------------
Robino-Bay Court Plaza, LLC, filed with the U.S. Bankruptcy Court
for the District of Delaware its schedules of assets and
liabilities, disclosing:
Name of Schedule Assets Liabilities
---------------- ----------- -----------
A. Real Property $12,700,000
B. Personal Property $84,786
C. Property Claimed as
Exempt
D. Creditors Holding
Secured Claims $13,514,831
E. Creditors Holding
Unsecured Priority
Claims $51,484
F. Creditors Holding
Unsecured Non-priority
Claims $132,006
----------- -----------
TOTAL $12,784,786 $13,698,321
Robino-Bay Court Pad, LLC, a debtor-affiliate, also filed
schedules disclosing $3,015,000 in assets and $2,900,000 in
liabilities.
About Robino-Bay Court Plaza
Wilmington, Delaware-based Robino-Bay Court Plaza, LLC, filed for
Chapter 11 bankruptcy protection on July 28, 2010 (Bankr. D. Del.
Case No. 10-12376). The Debtor is represented by John D.
McLaughlin, Jr., Esq., at Ciardi Ciardi & Astin.
An affiliate, Robino-Bay Court Pad, LLC, filed a separate Chapter
11 petition on July 28, 2010 (Case No. 10-12377).
SANTEON GROUP: Earns $60,700 in September 30 Quarter
----------------------------------------------------
Santeon Group, Inc., filed its quarterly report on Form 10-Q,
reporting net income of $60,734 on $394,559 of revenue for the
three months ended September 30, 2010, compared with a net loss of
$330,126 on $136 of revenue for the corresponding period last
year.
The Company's balance sheet at September 30, 2010, showed
$2.12 million in total assets, $757,587 in total liabilities, and
stockholders' equity of $1.37 million.
Although the Company earned a profit for the three months ended
September 30, 2010, of $60,734, the Company has incurred losses
totaling $3.96 million through September 30, 2010. Because of
these conditions, the Company may require additional working
capital to continue operations and develop its business. If
adequate working capital is not available, the Company may be
unable continue its operations or to successfully execute its
business plan.
"These conditions raise 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?6fc1
Resteon, Va.-based Santeon Group, Inc., provides business
solutions software and technology to assist companies with
performance optimization and maximizing revenues.
SASSAN KAVEH: Case Summary & 18 Largest Unsecured Creditors
-----------------------------------------------------------
Debtor: Sassan Kaveh
338 Wisetone Ave
Las Vegas, NV 89183
Bankruptcy Case No.: 10-32168
Chapter 11 Petition Date: November 24, 2010
Court: United States Bankruptcy Court
District of Nevada (Las Vegas)
Judge: Linda B. Riegle
Debtor's Counsel: Charles T. Wright, Esq.
PIET & WRIGHT
3130 S. Rainbow Blvd., Ste. 304
Las Vegas, NV 89146
Tel: (702) 566-1212
Fax: (702) 566-4833
E-mail: pwlawecf@gmail.com
Scheduled Assets: $1,782,750
Scheduled Debts: $1,467,941
A list of the Debtor's 18 largest unsecured creditors
filed together with the petition is available for free
at http://bankrupt.com/misc/nvb10-32168.pdf
TRIBUNE CO: Bank Debt Trades at 37% Off in Secondary Market
-----------------------------------------------------------
Participations in a syndicated loan under which Tribune Co. is a
borrower traded in the secondary market at 63.19 cents-on-the-
dollar during the week ended Friday, November 26, 2010, according
to data compiled by Loan Pricing Corp. and reported in The Wall
Street Journal. This represents a drop of 1.26 percentage points
from the previous week, The Journal relates. The Company pays 300
basis points above LIBOR to borrow under the facility, which
matures on May 17, 2014. Moody's has withdrawn its rating while
Standard & Poor's does not rate the bank debt. The loan is one of
the biggest gainers and losers among 192 widely quoted syndicated
loans with five or more bids in secondary trading for the week
ended Friday.
About Tribune Co.
Headquartered in Chicago, Illinois, Tribune Co. --
http://www.tribune.com/-- is a media company, operating
businesses in publishing, interactive and broadcasting, including
ten daily newspapers and commuter tabloids, 23 television
stations, WGN America, WGN-AM and the Chicago Cubs baseball team.
The Company and 110 of its affiliates filed for Chapter 11
protection on December 8, 2008 (Bankr. D. Del. Lead Case No. 08-
13141). The Debtors proposed Sidley Austin LLP as their counsel;
Cole, Schotz, Meisel, Forman & Leonard, PA, as Delaware counsel;
Lazard Ltd. and Alvarez & Marsal North America LLC as financial
advisors; and Epiq Bankruptcy Solutions LLC as claims agent. As
of December 8, 2008, the Debtors have $7,604,195,000 in total
assets and $12,972,541,148 in total debts.
Chadbourne & Parke LLP and Landis Rath LLP serve as co-counsel to
the Official Committee of Unsecured Creditors. AlixPartners LLP
is the Committee's financial advisor. Landis Rath Moelis &
Company serves as the Committee's investment banker. Thomas G.
Macauley, Esq., at Zuckerman Spaeder LLP, in Wilmington, Delaware,
represents the Committee in connection with the lawsuit filed
against former officers and shareholders for the 2007 LBO of
Tribune.
Bankruptcy Creditors' Service, Inc., publishes Tribune Bankruptcy
News. The newsletter tracks the chapter 11 proceeding undertaken
by Tribune Company and its various affiliates.
(http://bankrupt.com/newsstand/or 215/945-7000)
UNITED ENERGY: Posts $88,400 Net Loss in September 30 Quarter
-------------------------------------------------------------
United Energy Corp. filed its quarterly report on Form 10-Q,
reporting a net loss of $88,426 on $439,321 of revenue for the
three months ended September 30, 2010, compared with a net loss of
$497,698 on $613,202 of revenue for the same period ended
September 30, 2009.
The Company has an accumulated deficit of $23.69 million as of
September 30, 2010.
The Company's balance sheet at September 30, 2010, showed
$1.02 million in total assets, $1.08 million in total liabilities,
all current, and a stockholders' deficit of $69,308.
As reported in the Troubled Company Reporter on July 20, 2010,
Jewett, Schwartz, Wolfe & Associates, in Hollywood, Fla.,
expressed substantial doubt about the Company's ability to
continue as a going concern, following the Company's results for
the fiscal year ended March 31, 2010. The independent auditors
noted that the Company has operating and liquidity concerns, and
has incurred net losses of $23.55 million as of March 31, 2010.
A full-text copy of the Form 10-Q is available for free at:
http://researcharchives.com/t/s?6fc5
United Energy Corp. -- http://www.unitedenergycorp.net/--
develops and distributes environmentally friendly specialty
chemical products with applications in several industries and
markets.
Through its wholly owned subsidiary, Green Globe Industries, Inc.,
the Company provides the U.S. military with a variety of solvents,
paint strippers and cleaners under its trade name "Qualchem." The
Company is headquartered in Secaucus, New Jersey.
US AIRWAYS: Talks with DOT on Delta Slot Swap Continue
------------------------------------------------------
US Airways' talks with the U.S. Department of Transportation
regarding slot swaps with Delta Airlines at LaGuardia Airport in
New York and Ronald Reagan Washington National Airport continue,
Laura Kaster and Mary Schlangenstein of Bloomberg News report,
citing a US Airways' employee newsletter as its source.
According to Bloomberg, there's improved potential of the DOT
approving slot swap without divestitures given the change in
marketplace, adding that the environment is more favorable and
competitive as slots have moved into hands of low-cost carriers
as result of recent transactions.
About US Airways
US Airways -- http://www.usairways.com/-- along with US Airways
Shuttle and US Airways Express, operates more than 3,000 flights
per day and serves more than 190 communities in the U.S., Canada,
Mexico, Europe, the Middle East, the Caribbean, Central and South
America.
Under a Chapter 11 plan declared effective on March 31, 2003,
USAir emerged from bankruptcy with the Retirement Systems of
Alabama taking a 40% equity stake in the deleveraged carrier in
exchange for $240 million infusion of new capital.
US Airways and its subsidiaries filed another Chapter 11 petition
on September 12, 2004 (Bankr. E.D. Va. Case No. 04-13820). Brian
P. Leitch, Esq., Daniel M. Lewis, Esq., and Michael J. Canning,
Esq., at Arnold & Porter LLP, and Lawrence E. Rifken, Esq., and
Douglas M. Foley, Esq., at McGuireWoods LLP, represented the
Debtors in their restructuring efforts. The USAir II bankruptcy
plan became effective on September 27, 2005. The Debtors
completed their merger with America West on the same date. (US
Airways Bankruptcy News; Bankruptcy Creditors' Service Inc.,
http://bankrupt.com/newsstand/or 215/945-7000).
* * *
US Airways Group carries Moody's "Caa1" Long-Term rating, LT Corp.
family rating and probability of default rating. Outlook is
negative.
US Airways Group carries Standard & Poor's "B-" LT Foreign Issuer
Credit rating and LT Local Issuer credit rating. Outlook is also
negative.
US Airways Group carries Fitch's "CCC" LT Issuer default rating
and "C" Senior unsecured debt rating. Outlook is also negative.
VERTIS HOLDINGS: Confirmation Hearing Set for Dec. 16
-----------------------------------------------------
The Honorable Allan L. Gropper will review the adequacy of the
Disclosure Statement prepared by Vertis Holdings, Inc., and its
debtor-affiliates, and act on the company's request for
confirmation of that prepackaged plan at a hearing at 11:00 a.m.
on Dec. 16, 2010, in Manhattan.
As previously reported in the Troubled Company Reporter, the
Debtor obtained the requisite votes to confirm its prepackaged
plan prior to filing chapter 11 petitions. The Debtors plan
estimates recoveries by second-lien lenders at 41.74% and
recoveries by holders of Senior PIK Notes at 5.15%. Copies of the
Plan and the explanatory Disclosure Statement are available for
free at:
http://bankrupt.com/misc/VERTIS_HOLDINGS_plan.pdf
About Vertis Holdings
Baltimore, Md.-based Vertis Holdings, Inc., sought Chapter 11
protection (Bankr. S.D.N.Y. Case No. 10-16170) on Nov. 17, 2010.
Mark McDermott, Esq., and Kenneth S. Ziman, Esq., at Skadden
Arps Slate Meagher & Flom, LLP, serve as the Debtors' legal
counsel. Michael A. Kramer at Perella Weinberg Partners LP
serves as the Debtors' investment banker and financial advisor,
and a team led by FTI Consulting, Inc., provides restructuring and
financial advice. Kurtzman Carson Consultants LLC is the Debtors'
claims and
noticing agent. The Debtor estimated its assets and debts at more
than $1 billion.
On Nov. 17, 2010, affiliates American Color Graphics, Inc.
(Bankr. S.D.N.Y. Case No. 10-16169), Vertis Holdings, Inc.
(Bankr. S.D.N.Y. Case No. 10-16170), Vertis, Inc. (Bankr.
S.D.N.Y. Case No. 10-16171), ACG Holdings, Inc. (Bankr.
S.D.N.Y. Case No. 10-16172), Webcraft, LLC (Bankr. S.D.N.Y.
Case No. 10-16173), and Webcraft Chemicals, LLC (Bankr.
S.D.N.Y. Case No. 10-16174) filed separate Chapter 11
petitions.
YUKON-NEVADA: Posts $17.9 Million Net Loss in September 30 Quarter
------------------------------------------------------------------
Yukon-Nevada Gold Corp. filed with the U.S. Securities and
Exchange Commission on November 18, 2010, a current report on
Form 6-K containing its interim results of operations and
financial condition for the three months ended September 30, 2010.
The Company reported a net loss of US$17.93 million on
US$19.47 million of revenue for the three months ended
September 30, 2010, compared with a net loss of US$11.83 million
on US$0 revenue for the same period a year ago.
"Additional financing is required in order to fund further
development of the Jerritt Canyon mines and enable a return to
mining once the necessary infrastructure work has been completed,
the Company said in the filing.
At September 30, 2010 the Company had a working capital deficiency
of US$19.8 million.
The Company's balance sheet as of September 30, 2010, showed
US$226.97 million in total assets, US$130.79 million in total
liabilities, and stockholders' equity of US$96.18 million.
As reported in the Troubled Company Reporter on April 6, 2010,
KPMG LLP, in Vancouver, Canada, expressed substantial doubt about
the Company's ability to continue as a going concern, following
the Company's 2009 results. The independent auditors noted of the
Company's continuing losses and negative working capital as at
December 31, 2009.
A full-text copy of the interim consolidated financial statements
for the three months ended September 30, 2010, is available at no
charge at http://researcharchives.com/t/s?6fc7
A full-text copy of management's discussion and analysis for the
three months ended September 30, 2010, is available at no charge
at http://researcharchives.com/t/s?6fc8
About Yukon-Nevada Gold
Headquartered in Vancouver, Canada, Yukon-Nevada Gold Corp.
(Toronto Stock Exchange: YNG; Frankfurt Xetra Exchange: NG6)
-- http:www.yukon-nevadagold.com/ -- is a North American gold
producer in the business of discovering, developing and operating
gold deposits. The Company holds a diverse portfolio of gold,
silver, zinc and copper properties in the Yukon Territory and
British Columbia in Canada and in Arizona and Nevada in the United
States.
ZANETT INC: Has Commitment from PNC for $10-Mil. Financing
----------------------------------------------------------
On November 19, 2010, Zanett Inc. entered into a commitment letter
with PNC Bank, National Association, pursuant to which, subject to
the conditions set forth therein, the Bank committed to provide to
the Company up to an aggregate of $10.0 million in senior secured
financing, the proceeds of which will be used for the repayment of
existing senior indebtedness, the Company's working capital
needs, and fees and expenses related to the financing.
The Commitment Letter initially expires at the close of business
on November 19, 2010, and if the offer of financing pursuant to
the Commitment Letter is accepted, but funds are not disbursed
pursuant to a definitive loan and security agreement and related
documents prior to January 3, 2011, the Bank's commitment under
the Commitment Letter will expire.
Under the Commitment Letter, the Bank will provide the Company a
revolving line of credit subject to a borrowing base of up to 85%
of the Company's eligible North American accounts receivable and
up to 75% of the Company's eligible North American unbilled
accounts receivable at a floating interest rate equal to the Base
Rate plus 1.25% or the 30, 60, or 90 day Eurodollar Rate plus
3.50%.
The Company's obligations will be secured by all of the Company's
assets in the United States. The Company will pay a closing fee
of $50,000, as well as additional fees and expenses, and the loan
will be subject to prepayment penalties. The loan will mature
three years from the closing date.
The Commitment Letter describes conditions precedent, covenants,
and events of default that will be applicable to the Company under
the definitive loan and security agreement.
According to the Troubled Company Reporter on Nov. 19, 2010, the
Company said in a regulatory filing it remains in discussion
to replace its revolving credit facility with Bank of America.
It was not in compliance with certain loan covenants as of
September 30, 2010. The credit facility matured on June 21, 2010.
A full-text copy of the commitment letter is available for free
at http://ResearchArchives.com/t/s?6fd5
Based in New York, Zanett Inc. is an information technology
company that provides customized IT solutions to Fortune 500
corporations and mid-market companies. Until the disposition of
Paragon Dynamics, Inc., the Company also provided those solutions
to classified government agencies.
* BOND PRICING -- For Week From November 22 - 26, 2010
------------------------------------------------------
Company Coupon Maturity Bid Price
------- ------ -------- ---------
155 E TROPICANA 8.750% 4/1/2012 22.000
ABITIBI-CONS FIN 7.875% 8/1/2009 20.500
ACARS-GM 8.100% 6/15/2024 19.500
ADVANTA CAP TR 8.990% 12/17/2026 12.000
AFFINITY GROUP 10.875% 2/15/2012 49.500
AHERN RENTALS 9.250% 8/15/2013 53.000
AMBAC INC 6.150% 2/7/2087 1.200
AMBAC INC 7.500% 5/1/2023 13.845
AMBAC INC 9.375% 8/1/2011 18.775
AMBASSADORS INTL 3.750% 4/15/2027 26.250
AT HOME CORP 0.525% 12/28/2018 0.286
BALLY TOTAL FITN 14.000% 10/1/2013 1.000
BANK NEW ENGLAND 8.750% 4/1/1999 12.875
BANK NEW ENGLAND 9.875% 9/15/1999 12.875
BANKUNITED FINL 6.370% 5/17/2012 6.650
BLOCKBUSTER INC 9.000% 9/1/2012 1.250
BOWATER INC 6.500% 6/15/2013 33.000
BOWATER INC 9.500% 10/15/2012 32.750
C&D TECHNOLOGIES 5.500% 11/15/2026 73.000
CAPMARK FINL GRP 5.875% 5/10/2012 35.000
CHAMPION ENTERPR 2.750% 11/1/2037 1.323
COLONIAL BANK 6.375% 12/1/2015 0.190
DUNE ENERGY INC 10.500% 6/1/2012 70.500
EDDIE BAUER HLDG 5.250% 4/1/2014 5.000
ELEC DATA SYSTEM 3.875% 7/15/2023 96.000
EVERGREEN SOLAR 4.000% 7/15/2013 43.000
FAIRPOINT COMMUN 13.125% 4/1/2018 7.125
FAIRPOINT COMMUN 13.125% 4/2/2018 7.750
FRANKLIN BANK 4.000% 5/1/2027 1.125
GENERAL MOTORS 7.125% 7/15/2013 29.950
GENERAL MOTORS 7.700% 4/15/2016 30.150
GENERAL MOTORS 9.450% 11/1/2011 28.500
GREAT ATLA & PAC 5.125% 6/15/2011 80.450
INDALEX HOLD 11.500% 2/1/2014 0.750
JPMORGAN CHASE 2.625% 12/1/2010 100.006
KEYSTONE AUTO OP 9.750% 11/1/2013 44.500
LEHMAN BROS HLDG 1.985% 6/29/2012 8.055
LEHMAN BROS HLDG 4.500% 8/3/2011 20.500
LEHMAN BROS HLDG 4.700% 3/6/2013 20.250
LEHMAN BROS HLDG 4.800% 2/27/2013 19.500
LEHMAN BROS HLDG 4.800% 3/13/2014 20.300
LEHMAN BROS HLDG 5.000% 1/22/2013 19.625
LEHMAN BROS HLDG 5.000% 2/11/2013 20.750
LEHMAN BROS HLDG 5.000% 3/27/2013 19.625
LEHMAN BROS HLDG 5.000% 8/3/2014 20.625
LEHMAN BROS HLDG 5.000% 8/5/2015 20.750
LEHMAN BROS HLDG 5.100% 1/28/2013 19.625
LEHMAN BROS HLDG 5.150% 2/4/2015 19.057
LEHMAN BROS HLDG 5.250% 2/6/2012 20.848
LEHMAN BROS HLDG 5.250% 1/30/2014 19.625
LEHMAN BROS HLDG 5.250% 2/11/2015 20.750
LEHMAN BROS HLDG 5.350% 2/25/2018 20.750
LEHMAN BROS HLDG 5.500% 4/4/2016 22.000
LEHMAN BROS HLDG 5.500% 2/4/2018 20.750
LEHMAN BROS HLDG 5.500% 2/19/2018 20.750
LEHMAN BROS HLDG 5.550% 2/11/2018 20.750
LEHMAN BROS HLDG 5.625% 1/24/2013 21.500
LEHMAN BROS HLDG 5.700% 1/28/2018 20.750
LEHMAN BROS HLDG 5.750% 7/18/2011 21.000
LEHMAN BROS HLDG 5.750% 5/17/2013 20.000
LEHMAN BROS HLDG 5.750% 1/3/2017 0.010
LEHMAN BROS HLDG 5.875% 11/15/2017 19.057
LEHMAN BROS HLDG 6.000% 7/19/2012 21.000
LEHMAN BROS HLDG 6.000% 6/26/2015 20.750
LEHMAN BROS HLDG 6.000% 12/18/2015 20.750
LEHMAN BROS HLDG 6.000% 2/12/2018 19.325
LEHMAN BROS HLDG 6.200% 9/26/2014 22.188
LEHMAN BROS HLDG 6.625% 1/18/2012 21.000
LEHMAN BROS HLDG 7.000% 4/16/2019 19.150
LEHMAN BROS HLDG 7.000% 12/28/2037 16.000
LEHMAN BROS HLDG 7.000% 2/1/2038 16.125
LEHMAN BROS HLDG 7.875% 8/15/2010 20.375
LEHMAN BROS HLDG 8.000% 3/17/2023 20.625
LEHMAN BROS HLDG 8.050% 1/15/2019 20.125
LEHMAN BROS HLDG 8.400% 2/22/2023 19.000
LEHMAN BROS HLDG 8.500% 8/1/2015 19.250
LEHMAN BROS HLDG 8.500% 6/15/2022 20.750
LEHMAN BROS HLDG 8.800% 3/1/2015 20.750
LEHMAN BROS HLDG 9.000% 12/28/2022 20.500
LEHMAN BROS HLDG 9.000% 3/7/2023 20.750
LEHMAN BROS HLDG 9.500% 12/28/2022 20.750
LEHMAN BROS HLDG 9.500% 1/30/2023 18.400
LEHMAN BROS HLDG 9.500% 2/27/2023 20.750
LEHMAN BROS HLDG 10.000% 3/13/2023 20.750
LEHMAN BROS HLDG 10.375% 5/24/2024 20.500
LEHMAN BROS HLDG 11.000% 6/22/2022 20.250
LEHMAN BROS HLDG 11.000% 7/18/2022 20.500
LEHMAN BROS HLDG 11.000% 3/17/2028 19.625
LEHMAN BROS HLDG 11.500% 9/26/2022 19.750
LOCAL INSIGHT 11.000% 12/1/2017 4.090
MAGNA ENTERTAINM 7.250% 12/15/2009 6.000
MASSEY ENERGY CO 2.250% 4/1/2024 87.875
MERRILL LYNCH 1.720% 3/9/2011 100.000
MOMENT-CALL12/10 9.750% 12/1/2014 105.625
NETWORK COMMUNIC 10.750% 12/1/2013 35.500
NEWPAGE CORP 10.000% 5/1/2012 58.125
NEWPAGE CORP 12.000% 5/1/2013 33.500
PALM HARBOR 3.250% 5/15/2024 44.500
POPE & TALBOT 8.375% 6/1/2013 0.200
PROPEX FABRICS 10.000% 12/1/2012 0.250
RAFAELLA APPAREL 11.250% 6/15/2011 74.438
RASER TECH INC 8.000% 4/1/2013 35.750
RESTAURANT CO 10.000% 10/1/2013 41.750
RESTAURANT CO 10.000% 10/1/2013 31.000
SPHERIS INC 11.000% 12/15/2012 3.000
TEKNI-CALL12/10 10.875% 8/15/2012 100.625
THORNBURG MTG 8.000% 5/15/2013 3.150
TIMES MIRROR CO 7.250% 3/1/2013 46.750
TOM'S FOODS INC 10.500% 11/1/2004 1.704
TRANS-LUX CORP 8.250% 3/1/2012 5.750
TRICO MARINE 3.000% 1/15/2027 4.000
TRICO MARINE SER 8.125% 2/1/2013 12.500
VERENIUM CORP 5.500% 4/1/2027 91.000
VERTIS INC 13.500% 4/1/2014 29.750
VERTIS INC 18.500% 10/1/2012 23.875
VIRGIN RIVER CAS 9.000% 1/15/2012 45.500
WASH MUT BANK NV 6.750% 5/20/2036 0.150
WCI COMMUNITIES 7.875% 10/1/2013 0.600
WISMET-CALL12/10 10.250% 5/15/2012 95.000
WOLVERINE TUBE 15.000% 3/31/2012 32.000
*********
Monday's edition of the TCR delivers a list of indicative prices
for bond issues that reportedly trade well below par. Prices are
obtained by TCR editors from a variety of outside sources during
the prior week we think are reliable. Those sources may not,
however, be complete or accurate. The Monday Bond Pricing table
is compiled on the Friday prior to publication. Prices reported
are not intended to reflect actual trades. Prices for actual
trades are probably different. Our objective is to share
information, not make markets in publicly traded securities.
Nothing in the TCR constitutes an offer or solicitation to buy or
sell any security of any kind. It is likely that some entity
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Each Tuesday edition of the TCR contains a list of companies with
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share in public markets. At first glance, this list may look like
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then-ending.
For copies of court documents filed in the District of Delaware,
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*********
S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter is a daily newsletter co-published
by Bankruptcy Creditors" Service, Inc., Fairless Hills,
Pennsylvania, USA, and Beard Group, Inc., Frederick, Maryland,
USA. Marites Claro, Joy Agravante, Rousel Elaine Tumanda, Howard
C. Tolentino, Joseph Medel C. Martirez, Denise Marie Varquez,
Philline Reluya, Ronald C. Sy, Joel Anthony G. Lopez, Cecil R.
Villacampa, Sheryl Joy P. Olano, Carlo Fernandez, Christopher G.
Patalinghug, and Peter A. Chapman, Editors.
Copyright 2010. All rights reserved. ISSN: 1520-9474.
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not guaranteed.
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*** End of Transmission ***