/raid1/www/Hosts/bankrupt/TCR_Public/101206.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, December 6, 2010, Vol. 14, No. 338
Headlines
ABITIBIBOWATER INC: Settles with Woodbridge Over Augusta Plant
AMERICA'S SUPPLIERS: CFO Has Contract for Additional 2 Years
ANGIOTECH PHARMACEUTICALS: Notes' Grace Period Extended to Dec. 30
ANTHONY SERTICH: Case Summary & 15 Largest Unsecured Creditors
ARIEL WAY: Names Reliant Fin'l CEO as New CFO
AVAYA INC: Bank Debt Trades at 8% Off in Secondary Market
AVETA INC: S&P Assigns 'B+' Counterparty Credit Rating
AXCAN INTERMEDIATE: S&P Puts 'BB-' Rating on Negative Watch
BANKATLANTIC BANCORP: Wants Verdict in Shareholders Suit Set Aside
BERNARD L MADOFF: Trustee Sues HSBC for $9 Billion
BERNARD L MADOFF: SIPA Trustee Immune in Asset Freeze Spat
BIOFUEL ENERGY: S. Pearce to Sell 400,000 Shares of Common Stock
BIOLASE TECHNOLOGY: Seeks Confidential Treatment of 10-Q Exhibits
BLACK PRESS: S&P Gives Positive Outlook, Affirms 'B-' Rating
BREAKWATER SHORES: Case Summary & 8 Largest Unsecured Creditors
BOULDER CROSSROADS: Lionel Sawyer Wins Bid for Unpaid Legal Fees
BUILDERS FIRSTSOURCE: Amends 2007 Revolver to Increase Borrowing
BURTON MOTORS: Case Summary & 15 Largest Unsecured Creditors
CABRINI MEDICAL: Court Can't Reinstate Expired Ambulance License
CAVE LAKES: Gets Nod to Obtain Unsecured Postpetition Financing
CBGB HOLDINGS: Ch. 11 Case Dismissed After Trademarks Lost
CINRAM INT'L: Bank Debt Trades at 22% Off in Secondary Market
CITY THEATER: Case Summary & 12 Largest Unsecured Creditors
CLAIRE'S STORES: Reports $3.64-Mil. Net Income in Oct. 30 Quarter
CLEAR CHANNEL: Bank Debt Trades at 20% Off in Secondary Market
CLEARWIRE COMMUNICATIONS: S&P Rates Senior Notes at 'CCC-'
CLEARWIRE CORPORATION: Moody's Assigns 'B2' Rating on Senior Notes
CONSPIRACY ENTERTAINMENT: Posts $412,000 Net Loss in 3rd Qtr.
CONTECH CONSTRUCTION: Moody's Confirms 'Caa1' Corp. Family Rating
CRAWFORD & CO: S&P Affirms 'BB-' Rating on Senior Secured Loan
CROWNBROOK DEBCO: Judge Dismisses Nicos Polymers Case
CVB FINANCIAL: Fitch Cuts Individual Rating to 'C' From 'B/C'
DAVID MARCOE: Court OKs Use of First Horizon's Cash Collateral
DEAN FOODS: S&P Downgrades Corporate Credit Rating to 'B+'
DIGICEL LIMITED: Moody's Assigns 'B1' Rating on $300 Mil. Notes
DISCOVERY LABS: Gets Nasdaq Delisting Notification on Bid Price
DIVERSIFIED INDUSTRIES: Files Proposal to Creditors Under BIA
DJSP ENTERPRISES: Forbearance with BofA Lapses
EDGAR CAMACHO: Case Summary & 8 Largest Unsecured Creditors
EDROS INVESTMENT: Case Summary & Largest Unsecured Creditor
ELEPHANT TALK: Notes, Warrants Automatically Converted to Stock
EVERGREEN ENERGY: Gets Non-Compliance Notice From NYSE Arca
FAIRPOINT COMMUNICATIONS: Has Plan Exclusivity Until Jan. 31
FIRST FEDERAL: Incurs $5.36 Million Net Loss for Sept. 30 Quarter
FIRST FEDERAL: Gets Non-Compliance Letter From Nasdaq Market
FLINT TELECOM: Has Deal for Kodiak to Invest Up to $15 Million
GATEHOUSE MEDIA: Bank Debt Trades at 64% Off in Secondary Market
GENERAL MOTORS: Moody's Raises Corporate Family Rating to 'B1'
GIDEON LAND: Case Summary & 15 Largest Unsecured Creditors
HANMI FINANCIAL: Outside Date Under Woori Deal Extended to Dec. 31
HARBOR FREIGHT: S&P Assigns 'B+' Corporate Credit Rating
HERBST GAMING: Bank Debt Trades at 43% Off in Secondary Market
INDIANAPOLIS DOWNS: Cut by Moody's to 'Ca/LD' After Missed Payment
INGRID BAYSINGER: Case Summary & 20 Largest Unsecured Creditors
INSIGHT HEALTH: Reaches Deal With Noteholders on Chapter 11 Filing
INTEGRATED BIOPHARMA: Shareholders Ratify Friedman Appointment
INTERNATIONAL LEASE: Fitch Rates $1 Bil. Senior Notes at 'BB'
INTERNATIONAL LEASE: Moody's Assigns 'B1' Rating on Senior Notes
INTERNATIONAL LEASE: S&P Assigns 'BB+' Rating on Senior Notes
ITRON INC: S&P Raises Corporate Credit Rating to 'BB-'
JOHN KAMIN: Case Summary & 9 Largest Unsecured Creditors
L6 SYSTEMS: Case Summary & 20 Largest Unsecured Creditors
LA PALOMA: S&P Affirms 'CCC+' Ratings on $265 Mil. Loan
LIBERTY MEDIA: Moody's Retains 'B1' Corporate Family Rating
LOCAL INSIGHT: Bank Debt Trades at 65% Off in Secondary Market
LOEHMANN'S HOLDINGS: Files Exit Plan; To Sell if Plan Fails
MEDALLION LTD: Case Summary & 20 Largest Unsecured Creditors
METRO-GOLDWYN-MAYER: Court Confirms Pre-Packaged Plan
METRO-GOLDWYN-MAYER: Donlin Recano Tapped as Claims Agent
MOLECULAR INSIGHT: Receives Dec. 9 Extension of Waiver
NATIONAL MEDICAL: Involuntary Chapter 11 Petitions Dismissed
NILE THERAPEUTICS: Receives NASDAQ Notice, Will Request Hearing
NORD RESOURCES: W. Morrison Promoted to Chief Executive Officer
NOVELOS THERA: Reaches Exchange Deal With Preferred Stock Holders
NYC OFF-TRACK: Operations Extended Until December 7
OMNICOMM SYSTEMS: Sells 250,000 Shares of Preferred Stock to CEO
OSI RESTAURANT: Bank Debt Trades at 6% Off in Secondary Market
PACTIV CORPORATION: Moody's Junks Ratings on Five Notes
PALATIN TECHNOLOGIES: Gets Non-Compliance Letter From NYSE Amex
PALM HARBOR: Taps Brian Cejka as Chief Restructuring Officer
PALM HARBOR: Wants to Hire Polsinelli Shughart as Co-Counsel
PALM HARBOR: Wins Interim OK for $50-Mil. Bankruptcy Loan
PATIENT SAFETY: Signs Pennsylvania Sub-Lease With Centrak Inc.
PATRICK HACKETT: Balks at US Trustee's Plea for Ch. 7 Conversion
PAYMENT DATA: Meta to Terminate Prepaid Card Programs
PILGRIM'S PRIDE: S&P Assigns 'BB-' Corporate Credit Rating
PRIVATE EQUITY MANAGEMENT: Claims Due By Jan. 18, 2011
QUALITY BREEZE: Case Summary & 20 Largest Unsecured Creditors
QUVIS INC: Bids for Debtor's Assets Due By Dec. 20, 2010
RAFAELLA APPAREL: Says it Has Enough Near-Term Liquidity
RAMREDDY INC: Closed Gas Station's Chapter 11 Case Converted
RASER TECHNOLOGIES: Enters Into $2.5-Mil APA With Via Automotive
REALOGY CORP: Bank Debt Trades at 7% Off in Secondary Market
RENAISSANT LAFAYETTE: Interforum Wants Chapter 11 Case Dismissed
REYNOLDS GROUP: Moody's Ups Rating on Bank Credit Facility to Ba3
REYNOLDS GROUP: S&P Affirms 'B+' Corporate Credit Rating
RIVER CITY: Case Summary & 18 Largest Unsecured Creditors
RUST OF KENTUCKY: Bankr. Ct. Will Resolve Contract Disputes
SAINT VINCENTS: Rudin Family Keen on Buying Six Buildings
SOLO CUP: S&P Downgrades Corporate Credit Rating to 'B-'
TAMARACK RESORT: Property Owners Want Firm to Stay in Chapter 11
TEKNI-PLEX INC: S&P Assigns 'B-' Corporate Credit Rating
THOMPSON PUBLISHING: Proofs of Claim Due By Jan. 18, 2011
THYSSENKRUPP AG: PBGC Negotiates $105MM Pension Funding for Unit
TRICO MARINE: Second Auction Brings In Additional $5.3 Million
US FOODSERVICE: Bank Debt Trades at 9% Off in Secondary Market
VERTIS HOLDINGS: Judge Gropper Approves Backstopping Agreement
VITESSE SEMICONDUCTOR: M. Self Discloses 7.9% Equity Stake
WATERFORD GAMING: S&P Junks Issuer Credit Rating From 'B'
WILBUR BAKKE: Voluntary Chapter 11 Case Summary
WOLVERINE TUBE: Proofs of Claim Due By Jan. 14, 2011
* NHB Advisors Named One of Nation's Outstanding Turnaround Firms
* BOND PRICING -- For Week From Nov. 29 to Dec. 3, 2010
*********
ABITIBIBOWATER INC: Settles with Woodbridge Over Augusta Plant
--------------------------------------------------------------
Bill Rochelle, the bankruptcy columnist for Bloomberg News,
reports that AbitibiBowater Inc. reached a settlement of most
disputes with Woodbridge Co., its partner in a mill in Augusta,
Georgia, named Augusta Newsprint Co.
According to the report, AbitibiBowater will purchase Woodbridge's
47.5% stake for about $15 million in cash and a four-year note for
about $90 million. The note will be secured by AbitibiBowater's
ownership interest in the mill.
Mr. Rochelle recounts that the settlement ends a dispute on appeal
in U.S. District Court in Delaware. The dispute stemmed from a
call agreement, under which AbitibiBowater said it would have been
forced to buy out Woodbridge's interest in the plant or risk
"losing all of its equity in the partnership." To avoid the loss,
the bankruptcy court in October authorized AbitibiBowater to
reject the call agreement as an executory contract. Woodbridge
appealed.
Mr. Rochelle relates that the settlement avoids a situation where
a victory on appeal by Woodbridge might result in the loss of
AbitibiBowater's interest in the plant. The settlement preserves
Woodbridge's right to claim damages arising from rejection of the
call agreement.
About AbitibiBowater Inc.
AbitibiBowater Inc. produces newsprint, commercial printing
papers, market pulp and wood products. It is the eighth
largest publicly traded pulp and paper manufacturer in the world.
AbitibiBowater owns or operates 22 pulp and paper facilities and
26 wood products facilities located in the United States, Canada
and South Korea. The Company also recycles old newspapers and
magazines.
The Company and several of its affiliates filed for protection
under Chapter 11 of the U.S. Bankruptcy Code on April 16, 2009
(Bankr. D. Del. Lead Case No. 09-11296). The Company and its
Canadian affiliates commenced parallel restructuring proceedings
under the Companies' Creditors Arrangement Act before the Quebec
Superior Court Commercial Division the next day. Alex F. Morrison
at Ernst & Young, Inc., was appointed CCAA monitor.
Paul, Weiss, Rifkind, Wharton & Garrison LLP, serves as the
Debtors' U.S. bankruptcy counsel. Stikeman Elliot LLP, acts as
the Debtors' CCAA counsel. Young, Conaway, Stargatt & Taylor, in
Wilmington, Delaware, serves as the Debtors' co-counsel, while
Troutman Sanders LLP in New York, serves as the Debtors' conflicts
counsel in the Chapter 11 proceedings. The Debtors' financial
advisors are Advisory Services LP, and their noticing and claims
agent is Epiq Bankruptcy Solutions LLC. The CCAA Monitor's
counsel is Thornton, Grout & Finnigan LLP, in Toronto, Ontario.
Abitibi-Consolidated Inc. and various Canadian subsidiaries filed
for protection under Chapter 15 of the U.S. Bankruptcy Code on
April 17, 2009 (Bankr. D. Del. 09-11348). Pauline K. Morgan,
Esq., and Sean T. Greecher, Esq., at Young, Conaway, Stargatt &
Taylor, in Wilmington, represent the Chapter 15 Debtors.
U.S. Bankruptcy Judge Kevin Carey handles the Chapter 11 cases of
AbitibiBowater Inc. and its U.S. affiliates and the Chapter 15
case of ACI, et al.
The U.S. Bankruptcy Court issued an opinion confirming
AbitibiBowater's plan of reorganization under chapter 11 of the
U.S. Bankruptcy Code on November 22. The Debtor also obtained
approval of its reorganization plan under the Canadian Companies'
Creditors Arrangement Act. AbitibiBowater expects to emerge and
its plans to become effective in December.
AMERICA'S SUPPLIERS: CFO Has Contract for Additional 2 Years
------------------------------------------------------------
On November 30, 2010, America's Suppliers Inc. entered into an
employment agreement, with Michael Moore pursuant to which
Mr. Moore will continue to serve as Chief Financial Officer and
Secretary of DollarDays International, Inc., a wholly-owned
subsidiary of the Company and Chief Financial Officer and
Secretary of Wow My Universe, Inc., a wholly-owned subsidiary of
the Company.
The Moore Agreement has a two-year term and provides for a base
salary of $10,000 per month. In addition, the Moore Agreement
provides for a bonus of $5,000 cash compensation in the event
DollarDays achieves 100% of certain performance milestones
established by the Board. In the event the Moore Agreement is
terminated by the Company or Mr. Moore for any reason or no
reason, Mr. Moore shall receive all compensation due as of the
termination date and severance equal to nine months' base salary.
A full-text copy of M. Moore Agreement is available for free at:
http://ResearchArchives.com/t/s?705d
About America's Suppliers
Scottsdale, Ariz.-based America's Suppliers, Inc. develops
software programs that allow the Company to provide general
merchandise for resale to businesses. DollarDays International,
Inc., the Company's wholly owned subsidiary, is an Internet based
wholesaler of general merchandise to small independent resellers
through its Web site http://www.DollarDays.com/. Orders are
placed by customers through the Web site where, upon successful
payment, the merchandise is shipped directly from the vendors'
warehouses.
At September 30, 2010, the Company had total assets of $2,003,445,
including total current assets of $1,504,154; total liabilities,
all current, of $2,110,541; and total deficit of $107,096.
As reported in the Troubled Company Reporter on March 26, 2010,
MaloneBailey, LLP, in Houston, 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
Company has suffered an accumulated deficit of $6,949,006 as of
December 31, 2009.
ANGIOTECH PHARMACEUTICALS: Notes' Grace Period Extended to Dec. 30
------------------------------------------------------------------
Angiotech Pharmaceuticals, Inc., has reached an agreement with the
holders of approximately 76% of its 7.75% Senior Subordinated
Notes to extend certain deadlines outlined in their
Recapitalization Support Agreement dated October 29, 2010.
Seventy-three percent of the holders of the Subordinated Notes
executed the Initial Support Agreement and presently, 85% of the
holders of the Subordinated Notes have consented to the Initial
Support Agreement. On November 29, 2010, Angiotech and the
Trustee, at the direction of a majority of the holders of its
Subordinated Notes, extended the grace period applicable to
interest payments due on the Subordinated Notes before an event of
default occurs, with such grace period applicable to the
$9.7 million semi-annual interest payment that was due on the
Subordinated Notes on October 1, 2010 extended until December 30,
2010.
Under the Initial Support Agreement, the Consenting Noteholders
have agreed to exchange their Subordinated Notes for common stock
in the Company. Qualifying holders of the Subordinated Notes
participating in the Exchange Offer would receive their pro rata
share of up to 93.5% of the common stock of Angiotech issued and
outstanding following the completion of the recapitalization
transaction, subject to potential dilution. The Initial Support
Agreement provided that, as a condition precedent to the
implementation of the Exchange Offer, Noteholders comprising at
least 98% of the outstanding aggregate principal amount of the
Subordinated Notes must consent to the Exchange Offer on or before
January 7, 2011.
Under the Extension Agreement, the date by which Angiotech must
commence the Exchange Offer has been extended to December 15, 2010
and the date by which the Minimum Exchange Offer Threshold must be
achieved has been extended to January 21, 2011. All other
deadlines in the Initial Support Agreement with respect to the
Exchange Offer have similarly been extended by approximately two
weeks.
The Company has also entered into an agreement with holders of
approximately 53% of principal amount of the Company's existing
Senior Floating Rate Notes due 2013 to extend to December 15, 2010
the date by which Angiotech must commence the exchange offer
outlined in the previously announced Floating Rate Note Support
Agreement dated October 29, 2010.
Under the terms of the FRN Support Agreement, Angiotech will offer
to exchange Existing Floating Rate Notes for new floating rate
notes. The exchange offer will be open to all qualifying holders
of the Existing Floating Rate Notes. The New Floating Rate Notes
will be secured by a second lien over the assets and property of
the Company and certain of its subsidiaries and will otherwise be
issued on substantially the same terms and conditions as the
Existing Floating Rate Notes other than amendments to certain
covenants in respect of the incurrence of additional indebtedness,
liens and change of control.
The Extension Agreements will be filed by the Company on both
SEDAR and EDGAR, and the descriptions of the Extension Agreements
contained in this press release are qualified by the full text of
the applicable Extension Agreements.
About Angiotech
Based in Vancouver, British Columbia, in Canada, Angiotech
Pharmaceuticals, Inc. (NASDAQ: ANPI; TSX: ANP) --
http://www.angiotech.com/-- is a global specialty pharmaceutical
and medical device company. Angiotech discovers, develops and
markets innovative treatment solutions for diseases or
complications associated with medical device implants, surgical
interventions and acute injury.
Standard & Poor's Ratings Services lowered its long-term corporate
credit rating on Angiotech Pharmaceuticals Inc. to 'D' (default)
from 'CC'. At the same time, S&P lowered its issue-level rating
on the company's US$250 million senior subordinated debt to 'D'
from 'C'. S&P also lowered the issue-level rating on the
US$325 million senior unsecured notes to 'C' from 'CC'. The
recovery rating on each debt piece is unchanged.
Moody's Investors Service downgraded the probability of default
rating of Angiotech Pharmaceuticals, Inc., to Ca/LD from Ca and
affirmed the Corporate Family Rating at Ca. The company's other
existing debt ratings were affirmed. The outlook is developing.
Standard & Poor's Ratings Services said it withdrew its ratings,
including its 'D' long-term corporate credit rating, on Vancouver-
based Angiotech Pharmaceuticals Inc. at the company's request.
ANTHONY SERTICH: Case Summary & 15 Largest Unsecured Creditors
--------------------------------------------------------------
Debtor: Anthony Sertich
aka Anthony P. Sertich, Jr.
aka Anthony Patrick Sertich, Jr.
627 East Olmos
San Antonio, TX 78212
Bankruptcy Case No.: 10-54608
Chapter 11 Petition Date: December 1, 2010
Court: United States Bankruptcy Court
Western District of Texas (San Antonio)
Judge: Leif M. Clark
Debtor's Counsel: J. Todd Malaise, Esq.
MALAISE LAW FIRM
909 NE Loop 410, Suite 300
San Antonio, TX 78209
Tel: (210) 732-6699
Fax: (210) 732-5826
E-mail: notices@malaiselawfirm.com
Scheduled Assets: $911,113
Scheduled Debts: $2,978,303
A list of the Debtor's 15 largest unsecured creditors
filed together with the petition is available for free
at http://bankrupt.com/misc/txwb10-54608.pdf
ARIEL WAY: Names Reliant Fin'l CEO as New CFO
---------------------------------------------
Ariel Way Inc. announced that Dean Schauer has been appointed as
chief financial officer.
Arne Dunhem, chairman, president, and CEO of Ariel Way said, "We
are pleased to finally have a CFO that can assist us in becoming
fully compliant with the SEC again." Arne Dunhem also said, "Dean
Schauer has extensive experience in accounting and finance from
both public and private companies and his initial task will be to
complete and file all our quarterly and annual reports that were
previously not filed with SEC. He will then perform all duties
that are expected from a CFO."
Dean Schauer has over 26 years of executive-level financial
management experience gained in a wide range of public and private
companies. From March 2006 to the present, he has been the Chief
Executive Officer of Reliant Financial Consulting, an accounting
and financial consulting company. From July 1998 to March 2006 he
was the Managing Partner of Enterprise Financial Consulting. From
April 1990 to July 1998, he served as the Assistant Vice President
of Global Accounting for Global One, a global joint venture
between Sprint, France Telecom, and Deutsche Telekom. From April
1988 to April 1990, he was the Financial Reporting Manager for
Planning Research Corporation. From January 1984 to April 1988,
he served as an Audit Senior for Ernst & Young. Mr. Schauer
received a Bachelor of Arts degree from Texas A&M University. He
is a Certified Public Accountant.
About Ariel Way
Based in Vienna, Va., Ariel Way Inc. (OTC BB: AWYI) --
http://www.arielway.com/-- is a technology and services company
for highly secure global communications, multimedia and digital
signage solutions and technologies. The company is focused on
developing innovative and secure technologies, acquiring and
growing profitable advanced technology companies and global
communications service providers and creating strategic alliances
with companies in complementary product lines and service
industries.
Ariel Way Inc. said in a filing with the Securities and Exchange
Commission that it has, as of November 3, 2010, significantly
reduced its debt and liabilities -- through a settlement of debt
to Arne Dunhem -- and the conversion of $95,023 in debt to
316,744,514 shares of restricted common stock to Arne Dunhem.
Management intends to aggressively continue to attempt to reduce
the past debt and liabilities of the Company with a target of less
than $100,000 before end of year 2010. Management believes this
may create alternatives for new financing and the acquisition of
new operations to grow the shareholder value.
Going Concern Doubt
Ariel Way last filed financial reports with the Securities and
Exchange Commission in 2008.
In January 2008, Bagell, Josephs, Levine & Company, LLC, in
Marlton, N.J., expressed substantial doubt about Ariel Way Inc.'s
ability to continue as a going concern after auditing the
company's consolidated financial statements for the year ended
Sept. 30, 2007. The auditing firm said that the company did not
generate sufficient cash flows from revenues during the year ended
Sept. 30, 2007, to fund its operations.
AVAYA INC: Bank Debt Trades at 8% Off in Secondary Market
----------------------------------------------------------
Participations in a syndicated loan under which Avaya, Inc., is a
borrower traded in the secondary market at 92.08 cents-on-the-
dollar during the week ended Friday, December 3, 2010, according
to data compiled by Loan Pricing Corp. and reported in The Wall
Street Journal. This represents an increase of 1.55 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 201 widely quoted syndicated
loans with five or more bids in secondary trading for the week
ended Friday.
Avaya, Inc., based in Basking Ridge, New Jersey, is a supplier of
communications systems and software for enterprise customers.
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).
AVETA INC: S&P Assigns 'B+' Counterparty Credit Rating
------------------------------------------------------
Standard & Poor's Ratings Services said that it assigned a 'B+'
counterparty credit rating to Aveta Inc. and a 'B+' rating to the
company's syndicated term loan.
Standard & Poor's also said that the outlook on Aveta is stable.
"The rating on Aveta is based on the company's strong operating
performance, medical management capabilities, and leading position
in its core Medicare Advantage HMO market segment," explained
Standard & Poor's credit analyst Deep Banerjee. "Offsetting these
strengths are the company's geographic and product concentrations,
weak risk-adjusted capitalization, and limited financial
flexibility."
Despite the reduction in MA reimbursements in 2010, S&P expects
that the company will report strong EBITDA margins of above 5% for
the full year, which S&P views as a key strength to the rating.
Aveta's strong medical management capabilities are integral to its
operating performance because they help the company effectively
manage its medical costs. The company also serves a large number
of dual eligible members, who it is able to medically manage
through its independent practice association network in Puerto
Rico, further bolstering profitability. Although Aveta's margins
might decline in the near term from this year's highs, S&P expects
them to remain strong for the rating.
Aveta is a leading provider of MA plans in Puerto Rico. Further,
with an increasing number of its members using physicians
affiliated with IPAs, the company has been able to improve its
medical-management capabilities. This also allows Aveta to
continue to be a low-cost insurer in Puerto Rico, thereby helping
to sustain its leading competitive position in the commonwealth.
Aveta has a geographic concentration in Puerto Rico and a product
concentration in the government-sponsored MA segment. The
majority of the company's EBITDA comes from its Puerto Rico MA
operations. S&P considers this high concentration to be very
risky and therefore a key limiting factor to the current rating.
The company's weak operating-company capital levels limit its
financial profile. Aveta does maintain adequate capital to meet
local regulatory requirements. However, based on S&P's risk-based
capital adequacy model, S&P considers the company's capitalization
to be weak for its product portfolio.
The stable outlook indicates that S&P is not likely to change the
rating on Aveta in the next 12 months.
S&P expects that the company will maintain its leading competitive
position in the Puerto Rico MA market, supported by strong
operating performance (an expected EBITDA margin of more than 5%
for the full-years 2010 and 2011), which limits the likelihood of
a downgrade in the near term. Conversely, S&P is unlikely to
raise the rating in the near term because of Aveta's geographic
and product concentrations as well its weak capitalization, which
will likely continue in the near term. However, if the company
increases its leverage above S&P's rating tolerance or is unable
to maintain strong operating margins in the near term, S&P will
likely lower the rating.
The company's debt to capital will likely decline over the next
few years because of the required debt amortization and cash-flow
sweeps as well as increasing retained earnings adding to equity.
S&P expects debt-to-total capital to be about 60% in 2011 and 40%
in 2012. Strong EBITDA levels will help maintain fixed-charge
coverage (including the required loan amortization and estimated
operating lease interest) at more than 4x in the near term, which
S&P considers to be strong for the rating.
AXCAN INTERMEDIATE: S&P Puts 'BB-' Rating on Negative Watch
-----------------------------------------------------------
Standard & Poor's Ratings Services said it placed its ratings,
including its 'BB-' long-term corporate credit rating, on Axcan
Intermediate Holdings Inc. on CreditWatch with negative
implications.
"The CreditWatch placement follows Axcan's announcement that it
intends to acquire Amsterdam, Neth.-based specialty pharmaceutical
company Eurand N.V. for US$583 million cash," said Standard &
Poor's credit analyst Arthur Wong.
Eurand's main product is the recently launched Zenpep, a
pancreatic enzyme product. Zenpep is one of only three such
products on the market, as a number of older PEPs, including
Axcan's key Ultrase and Viokase products, have been withdrawn from
the market due to a cease-distribution order from the U.S. Federal
Drug Administration.
The timing of FDA re-approval of Ultrase and Viokase is uncertain.
Axcan has just received a request for additional information from
the FDA.
The Eurand acquisition enables Axcan to re-enter the market for
PEPs, given its FDA issues with Ultrase and Viokase.
In addition, Axcan had been paying Eurand a royalty on Ultrase
sales, as Eurand contract-manufactured the product for Axcan.
Should Ultrase return to market, Axcan would benefit from a higher
product margin. However, the company has seen its revenues slide,
mostly attributable to the loss of sales and product returns
associated with its PEPs. Furthermore, Zenpep competes against
Abbott Laboratories' (AA/Stable/A-1+) Creon and Johnson &
Johnson's (AAA/Stable/A-1+) Pancrease, two much more established
products in the market.
Given the transaction, Axcan's financial risk profile will likely
remain aggressive in the medium term, as leverage will increase
from the current 5x plus, and be out of line with the 'BB-' rating
on Axcan.
While the proposed acquisition would address a current void in
Axcan's portfolio, leverage will likely increase from the 5.3x
level at the end of June 30, 2010.
Standard & Poor's plans to resolve the CreditWatch in the next
quarter and will weigh the company's initial pro forma leverage;
its de-levering, integration, and synergy plans; and the potential
return of Axcan's own PEP products to market.
BANKATLANTIC BANCORP: Wants Verdict in Shareholders Suit Set Aside
------------------------------------------------------------------
BankAtlantic Bancorp, Inc. said in a press release that it will be
filing motions to set aside a verdict finding that it violated
federal securities laws.
BankAtlantic Bancorp and certain of its directors and executive
officers were defendants in a shareholder class action lawsuit
brought in the United States District Court for the Southern
District of Florida in which the plaintiffs alleged that the
Company and the other named defendants knowingly and/or recklessly
made misrepresentations of material fact regarding BankAtlantic in
violation of the Securities Exchange Act of 1934 and Rule 10b-5
promulgated thereunder.
On November 18, 2010, a jury returned a verdict awarding $2.41 per
share to shareholders who purchased shares of the Company's Class
A Common Stock during the period of April 26, 2007 to October 26,
2007 who retained those shares until the end of the period. The
jury rejected the plaintiffs' claim for the six month period from
October 19, 2006 to April 25, 2007.
BankAtlantic Bancorp's Chairman and Chief Executive Officer, Alan
B. Levan, commented, "We are extremely disappointed with the
verdict. The jury found seven isolated statements made in
earnings conference calls were false. In adopting the Private
Securities Litigation Reform Act, Congress provided safe harbor
within the "Forward Looking Statement" and intended to provide a
forum for corporate executives to freely discuss their businesses
and their prospects without fear of this kind of litigation.
Prior to trial, the court ruled that BankAtlantic's allowance for
loan loss provision, and BankAtlantic Bancorp's financial
statements were accurately calculated and reported throughout the
class period. We believe that should have been the end of this
case. BankAtlantic lost money and Bancorp's stock price declined
because the Florida real estate market collapsed. The risk of
that occurrence was fully, completely and timely disclosed to the
market. No one could fairly express either surprise or deceit
when that risk materialized with the collapse of the Florida
housing market in late 2007. If this outcome is allowed to stand,
it would take public companies back to the day before Congress
passed the Securities Litigation Reform Act. We will pursue every
avenue to set this verdict aside and are confident of success in
that endeavor."
If the Motions are denied, the judge has indicated that she will
certify all issues to the 11th Circuit Court of Appeals before any
judgment is entered or claims commenced.
BankAtlantic, the federal savings bank, is not impacted by the
verdict. The decision is against BankAtlantic Bancorp.
About BankAtlantic Bancorp
BankAtlantic Bancorp (NYSE: BBX) --
http://www.BankAtlanticBancorp.com/-- is a bank holding company
and the parent company of BankAtlantic. BankAtlantic --
"Florida's Most Convenient Bank" with a Web presence at
http://www.BankAtlantic.com/-- has nearly $6.0 billion in assets
and more than 100 stores, and is one of the largest financial
institutions headquartered junior in Florida. BankAtlantic has
been serving communities throughout Florida since 1952 and
currently operates more than 250 conveniently located ATMs.
* * *
In September 2010, Fitch Ratings downgraded the long-term Issuer
Default Ratings of BankAtlantic Bancorp. to 'CC' from 'B-' and its
primary operating subsidiary, BankAtlantic FSB to 'CC' from 'B+.
The 'CC' long-term IDR indicates a high default probability.
Fitch said it believes that BBX will likely require external
capital support given the high level of credit costs that continue
to impact BBX's financial performance and erode its existing weak
level of tangible common equity, which stood at just 1.39% at
June 30, 2010. Although BFSB's regulatory capital levels remain
'well-capitalized', Fitch believes the company needs additional
capital in order to provide absorption for future losses,
particularly since earnings generation on a pre-provision net
revenue basis is weak.
BERNARD L MADOFF: Trustee Sues HSBC for $9 Billion
--------------------------------------------------
Irving H. Picard, the Trustee for the liquidation of Bernard L.
Madoff Investment Securities LLC disclosed the filing of a
complaint in the United States Bankruptcy Court for the Southern
District of New York, alleging 24 counts of financial fraud and
misconduct against HSBC Holdings plc, HSBC Bank plc, and
affiliated entities.
The complaint alleges that HSBC enabled Madoff's Ponzi scheme
through the creation, marketing and support of an international
network of a dozen feeder funds based in Europe, the Caribbean,
and Central America, which are also named in the complaint. Other
Defendants named in the filing include the management companies
and service providers of those feeder funds, as well as certain of
their directors and managers, namely Sonja Kohn,Genevalor,Mario
Benbassat and his sons, Albert and Stephane, as well as Bank
Medici andUnicredit,who together with other defendants helped fuel
and extend Madoff's Ponzi scheme across international borders.
From these Defendants, the Trustee seeks to recover at least
$9 billion based on theories of contribution to Madoff's scheme;
aiding and abetting Madoff's fraud; unjust enrichment in the form
of millions of dollars; and over $2.3 billion in fraudulent
transfers. All monies recovered will be deposited in the Customer
Fund for equitable distribution to BLMIS customers with valid
claims.
According to the complaint, the Defendants directed more than
$8.9 billion into BLMIS's fraudulent investment advisory business.
The Defendants also earned hundreds of millions of dollars by
selling, marketing, lending to, and investing in financial
instruments designed to substantially assist Madoff by pumping
money into BLMIS and prolonging the Ponzi scheme.
The complaint alleges that the Defendants were well aware of the
indicia of fraud surrounding BLMIS. HSBC twice retained KPMG to
identify concerns with BLMIS, and KPMG twice reported serious
risks already known to HSBC.
"Had HSBC and the Defendants reacted appropriately to such
warnings and other obvious badges of fraud outlined in the
complaint, the Madoff Ponzi scheme would have collapsed years,
billions of dollars, and countless victims sooner," said Mr.
Picard. "The Defendants were willfully and deliberately blind to
the fraud, even after learning about numerous red flags
surrounding Madoff."
"All of the Defendants are financial institutions, hedge funds,
investment advisers, managers, and promoters whose financial
sophistication gave them insight into Madoff's fraud long before
his confession and arrest in 2008," said David J. Sheehan, counsel
to the Trustee and a partner at Baker & Hostetler LLP, the court
appointed counsel for Mr. Picard. "Each possessed a strong
financial incentive to participate in, perpetuate, and stay silent
about Madoff's fraudulent scheme."
"The Defendants engineered a labyrinth of hedge funds, management
companies, and service providers that, to unsuspecting outsiders,
seemed to compose a formidable system of checks and balances,"
said Oren Warshavsky, a partner at Baker & Hostetler LLP. "Yet
the purpose of this complex architecture was just the opposite:
the Defendants wanted to provide different modes for directing
money to Madoff in order to avoid scrutiny and generate more fees.
At the core of this architecture was a remarkably small group of
individuals and the bank on which they all relied to help project
an air of credibility: HSBC. HSBC alone performed due diligence in
its multiple capacities giving it a level of insight into BLMIS
that was unsurpassed."
In addition to Mr. Sheehan and Mr. Warshavsky, the Trustee
acknowledges the contributions of the Baker & Hostetler LLP team
of attorneys who worked on the preparation of the extensive filing
against HSBC and the other Defendants: Anjula Garg, Adam
Oppenheim, Jennifer Walrath, Geoffrey North, Marco Serrano, Jessie
Schweller, Peter Shapiro, Dominic Gentile, Anthony Stark, Jessica
Schichnes, Jocelyn Burgos, Madiha Zuberi and Jacqlyn Rovine. The
Trustee also acknowledges Tatiana Markel and Maryanne Stanganelli
for their work on the matter.
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.
BERNARD L MADOFF: SIPA Trustee Immune in Asset Freeze Spat
----------------------------------------------------------
WestLaw reports that a trustee acted in good faith and within the
scope of his statutory and court-appointed duties in sending a
letter to an investment banking and securities firm which warned
of the firm's possible receipt of funds from an investment company
being liquidated pursuant to the Securities Investor Protection
Act and provided notice that such funds should not be transferred
or disposed of without a bankruptcy court order. Therefore, the
trustee was immune from liability on tort claims by account
holders arising from the sending of the letter, which resulted in
an investment banking and securities firm freezing their account.
In re Bernard L. Madoff Investment Securities LLC, --- B.R. ----,
2010 WL 4845737 (Bankr. S.D.N.Y.) (Lifland, J.).
The Honorable Burton R. Lifland's ruling arises in connection with
the on-going disputes about virtually everything in Picard v.
Chais, et al., Adv. Pro. No. 09-1172 (Bankr. S.D.N.Y.), as the
SIPA Trustee attempts to recover fictitious profits paid out to
Madoff investors.
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.
BIOFUEL ENERGY: S. Pearce to Sell 400,000 Shares of Common Stock
----------------------------------------------------------------
According to a filing with the Securities and Exchange Commission,
Scott H. Pearce, the president and chief executive officer of
BioFuel Energy Corp., entered into a Rule 10b5-1 trading plan, ,
on November 24, 2010, to sell shares of common stock of Biofuel
Energy Corp. on the open market in order to raise sufficient
proceeds to enable him to participate in the Company's rights
offering with respect to the remaining shares he owns. Mr. Pearce
may sell up to 400,000 shares under the terms of the Plan.
The Company announced the Rights Offering on September 24, 2010
and has filed a registration statement with the SEC with respect
to the securities being offered. Mr. Pearce currently
beneficially owns 989,253 shares of Company stock. In the event
that sales of a lesser number of shares of stock under the Plan
raise sufficient proceeds to permit Mr. Pearce to exercise his
rights under the Rights Offering with respect to his remaining
shares, Mr. Pearce will not sell the entire 400,000 shares. The
Plan will terminate upon the earlier of the completion of the
sales of stock under the Plan or the record date of the Rights
Offering.
Sales made pursuant to the Plan will be disclosed publicly by
Mr. Pearce through appropriate filings with the SEC and will be
made in accordance with applicable securities laws, including Rule
144 of the Securities Act of 1933. Rule 10b5-1 of the Securities
Exchange Act of 1934 provides a mechanism for insiders to adopt
written plans for trading securities in a non-discretionary, pre-
scheduled manner in order to avoid concerns about initiating stock
transactions when the insider may be aware of material, non-public
information.
About Biofuel Energy
Denver, Colo.-based BioFuel Energy Corp. (Nasdaq: BIOF)
-- http://www.bfenergy.com/-- currently has two 115 million
gallons per year ethanol plants in the Midwestern corn belt. The
Company's goal is to become a leading ethanol producer in the
United States by acquiring, developing, owning and operating
ethanol production facilities.
The Company's balance sheet at September 30, 2010, showed
$329.7 million in total assets, $274.6 million in total
liabilities, and stockholders' equity of $55.1 million.
As reported in the Troubled Company Reporter on March 31, 2010,
Grant Thornton LLP, in Denver, expressed substantial doubt about
the Company's ability to continue as a going concern, following
its 2009 results. The independent auditors noted that the Company
has experienced declining liquidity and has $16.5 million of
outstanding working capital loans that mature in September 201
"If we are unable to raise sufficient proceeds from the rights
offering, the LLC's concurrent private placement, or from other
sources, we may be unable to continue as a going concern, which
could potentially force us to seek relief through a filing under
the U.S. Bankruptcy Code," the Company said in its Form 10-Q for
the third quarter of 2010. Biofuel reported a net loss of $1.8
million on $114.7 million of revenue for the three months ended
September 30, 2010, compared with a net loss of $8.4 million on
$91.1 million of revenue for the same period last year.
BIOLASE TECHNOLOGY: Seeks Confidential Treatment of 10-Q Exhibits
-----------------------------------------------------------------
Biolase Technology, Inc. submitted an application under Rule 24b-2
requesting confidential treatment for information it excluded from
the exhibits to a Form 10-Q filed on November 3, 2010.
Based on representations by the Company that this information
qualifies as confidential commercial or financial information
under the Freedom of Information Act, 5 U.S.C. Sec. 552(b)(4), the
Division of Corporation Finance has determined not to publicly
disclose it. Accordingly, excluded information from Exhibit 10.5
will not be released to the public until November 8, 2016.
In its latest Form 10-Q, the Company said that net loss for this
year's third quarter was $2.7 million compared to net income of
$859,000 in the 2009 third quarter. Net revenue for the 2010
third quarter was $6.2 million compared to $12.1 million in the
same quarter for 2009 and $5.9 million in the 2010 second quarter.
The Company's balance sheet at Sept. 30, 2010, showed
$19.49 million in total assets, $23.04 million in total
liabilities, and a stockholder's deficit of $3.54 million.
A full-text copy of the quarterly report on Form 10-Q is available
for free at http://ResearchArchives.com/t/s?6d94
About BIOLASE Technology
Irvine, Calif.-based BIOLASE Technology, Inc. (NASDAQ: BLTI)
-- http://www.biolase.com/-- is a dental laser company. The
Company develops, manufactures and markets Waterlase technology
and lasers and related products that advance the practice of
dentistry and medicine.
As reported in the Troubled Company Reporter on March 22, 2010,
BDO Seidman, LLP, in Costa Mesa, Calif., expressed substantial
doubt about the Company's ability to continue as a going concern,
following its 2009 results. The independent auditors noted that
the Company has suffered recurring losses from operations, has had
declining revenues, has limited financial resources at
December 31, 2009, and is substantially dependent upon its primary
distributor for future purchases of the Company's products.
BLACK PRESS: S&P Gives Positive Outlook, Affirms 'B-' Rating
------------------------------------------------------------
Standard & Poor's Ratings Services said it revised its outlook on
Victoria, B.C.-based Black Press Ltd. to positive from negative.
At the same time, Standard & Poor's affirmed its 'B-' long-term
corporate credit rating on the company.
S&P also affirmed its 'B-' issue-level rating on Black Press'
senior secured credit facility. The recovery rating is unchanged
at '4', indicating S&P's expectation of average (30%-50%) recovery
for debt holders in the event of default.
"The outlook revision reflects the progress Black Press has made
in improving profit margins and credit protection measures despite
negative revenue trends in the past couple of years due to the
weak economy and a very challenging advertising environment," said
Standard & Poor's credit analyst Lori Harris. "Significant cost
cutting by management and lower newsprint costs have been the main
drivers," Ms. Harris added.
The ratings on Black Press reflect what Standard & Poor's
considers the company's high debt leverage, weak performance in
the U.S., tight but improving leverage covenant cushion, and lack
of revenue diversification outside of the newspaper industry.
Partially offsetting these factors, in S&P's opinion, are the
company's better performance in Canada (which makes up the bulk of
revenue and profit), improving credit protection measures, and
solid market position within several of its regions.
The positive outlook on Black Press reflects S&P's view that the
company will maintain its current operating performance in the
near term given the gradual economic recovery and improving
advertising environment. S&P could raise the ratings if the
company improves its operating performance and credit metrics on a
sustainable basis, including debt leverage at or below 5x, while
successfully refinancing its debt coming due next year.
Alternatively, S&P could revise the outlook to stable should
leverage remain above 5x in the medium term. S&P could lower the
ratings if Black Press' operating performance and credit measures
deteriorate or the company is unable to refinance its 2011 debt
maturities.
Black Press is a private company and does not release financial
information publicly.
BREAKWATER SHORES: Case Summary & 8 Largest Unsecured Creditors
---------------------------------------------------------------
Debtor: Breakwater Shores Partners, L.P.
fdba Lighthouse Landing Partners, LP
c/o Scott A. Ritcheson
Ritcheson, Lauffer & Vincent, P.C.
821 ESE Loop 323, Ste. 530
Tyler, TX 75701
Bankruptcy Case No.: 10-61254
Chapter 11 Petition Date: November 30, 2010
Court: United States Bankruptcy Court
Eastern District of Texas (Tyler)
Debtor's Counsel: Scott Alan Ritcheson, Esq.
RITCHESON, LAUFFER & VINCENT, P.C
821 ESE Loop 323, Suite 530
Tyler, TX 75701
Tel: (903) 535-2900
E-mail: scottr@rllawfirm.net
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $500,001 to $1,000,000
A list of the Company's eight largest unsecured creditors
filed together with the petition is available for free
at http://bankrupt.com/misc/txeb10-61254.pdf
The petition was signed by Roger D. Groom, president of Envision
Development, LLC.
BOULDER CROSSROADS: Lionel Sawyer Wins Bid for Unpaid Legal Fees
----------------------------------------------------------------
The Hon. Craig A. Gargotta denies Boulder Crossroads, LLC's
Objection to Lionel Sawyer & Collins' $91,506 claim for unpaid
legal fees. Nevada-based LS&C assisted Boulder Crossroads in
resolving a contractor dispute. The Court finds that (1) LS&C's
fees are reasonable under 11 U.S.C. Sec. 502(b)(4) and should be
allowed; (2) there was no conflict of interest to warrant a
disgorgement or disallowance of LS&C's fees; and (3) the
application of the retainer was not a violation of the automatic
stay.
A copy of Judge Gargotta's November 30, 2010 Memorandum Opinion is
available at http://is.gd/i7EOBfrom Leagle.com.
Boulder Crossroads LLC -- http://bouldercrossroads.net/-- built
and operated a shopping center located at the intersection of
Nellis Boulevard and Boulder Highway in Sunrise Manner, an
unincorporated area in Las Vegas, Nevada. The center consists of
five in-line buildings and two ground lease buildings. Boulder
Crossroads filed a Chapter 11 bankruptcy petition (Bankr. W.D.
Tex. Case No. 09-10381) on February 17, 2009. On December 28,
2009, the Court entered an order confirming the Debtor's Amended
Plan of Reorganization.
Barbara M. Barron, Esq., at Barron & Newburger, P.C., in Austin,
Texas, served as bankruptcy counsel. In its petition, the Debtor
estimated $10 million to $50 million in both assets and debts.
BUILDERS FIRSTSOURCE: Amends 2007 Revolver to Increase Borrowing
----------------------------------------------------------------
On November 23, 2010, Builders FirstSource, Inc. entered into an
amendment to the Loan and Security Agreement, dated December 14,
2007, with Wells Fargo Bank, National Association, successor by
merger to Wachovia Bank, National Association, as administrative
agent and collateral trustee, UBS Securities LLC, as syndication
agent, General Electric Capital Corporation, as documentation
agent, and Wachovia Capital Markets, LLC and UBS Securities LLC,
as joint lead bookrunners, and other parties.
The amendment was requested by the Company in order to increase
its borrowing availability and reduce the commitment fees paid
under the Facility.
Commenting on the transaction, Builders FirstSource Senior Vice
President and Chief Financial Officer Chad Crow said, "We could
not be more pleased with this amendment and the willingness of our
bank group, led by Wells Fargo Bank, to partner with us in getting
this done. This amendment provides us with up to $25.0 million of
additional borrowing availability by reducing our minimum
liquidity requirement, and also reduces the maximum borrowing
capacity under the Facility from $250.0 million to $150.0 million,
lowering our annual interest expense related to commitment fees by
approximately $0.4 million. This is a significant improvement to
our overall liquidity and should not limit our future borrowing
capacity as we do not anticipate our borrowing base will support
borrowings in excess of $150.0 million prior to the expiration of
the Facility in December 2012."
The Facility has certain restrictive covenants including a fixed
charge coverage ratio of 1:1 that, prior to the amendment, was
triggered if its excess availability, as determined under the
borrowing base formula, fell below a minimum liquidity requirement
of $35.0 million. Under the terms of the amendment, the minimum
liquidity requirement was reduced and will now be determined on a
sliding scale based on the Company's average gross availability,
as outlined in the table below:
Minimum
Ninety Day Average Liquidity
Gross Availability Requirement
------------------ -----------
Greater than $130.0 million $18.75 million
Less than or equal to $130.0 million $16.25 million
and greater than $80.0 million
Less than or equal to $80.0 million $10.0 million
Floyd Sherman, Builders FirstSource Chief Executive Officer,
added, "I don't believe this amendment would have been possible if
not for the sacrifices made by all Builders FirstSource employees
and their willingness to do whatever it takes to manage through
this housing downturn. Our ability to adapt to the pressures
placed on us by the sluggish homebuilding industry helped make
this amendment possible. While I am very appreciative of our bank
group, I am just as appreciative of our employees for putting us
in a position to make this happen."
A full-text copy of the Amended Loan And Security Agreement is
available for free at http://ResearchArchives.com/t/s?705b
About Builders FirstSource
Headquartered in Dallas, Texas, Builders FirstSource Inc. --
http://www.bldr.com/-- is a supplier and manufacturer of
structural and related building products for residential new
construction. The company operates in 9 states, principally in
the southern and eastern United States, and has 55 distribution
centers and 51 manufacturing facilities, many of which are located
on the same premises as its distribution facilities.
The Company's balance sheet at Sept. 30, 2010, showed
$442.28 million in total assets, $259.74 million in total
liabilities, and stockholder's equity of $182.54 million.
* * *
Builders FirstSource Inc. carries 'Caa2' long term and senior
secured debt ratings, with negative outlook, from Standard &
Poor's.
BURTON MOTORS: Case Summary & 15 Largest Unsecured Creditors
------------------------------------------------------------
Debtor: Burton Motors Ltd. Co.
a New Mexico Domestic Limited Liability Company
aka Burton Motors
5660 Pino Ave. NE
Albuquerque, NM 87109-5708
Bankruptcy Case No.: 10-15978
Chapter 11 Petition Date: December 1, 2010
Court: United States Bankruptcy Court
District of New Mexico (Albuquerque)
Judge: Robert H. Jacobvitz
Debtor's Counsel: William F. Davis, Esq.
WILLIAM F. DAVIS & ASSOCIATES, P.C.
6709 Academy NE, Ste A
Albuquerque, NM 87109
Tel: (505) 243-6129
Fax: (505) 247-3185
E-mail: daviswf@nmbankruptcy.com
Scheduled Assets: $622,902
Scheduled Debts: $1,284,807
A list of the Company's 15 largest unsecured creditors
filed together with the petition is available for free
at http://bankrupt.com/misc/nmb10-15978.pdf
The petition was signed by Bruce F. Burton, managing member.
CABRINI MEDICAL: Court Can't Reinstate Expired Ambulance License
----------------------------------------------------------------
WestLaw reports that a bankruptcy court was without jurisdiction
to decide whether a bankrupt medical center's expired ambulance
operating authority could be reinstated, more than 30 days after
it expired, without the full administrative review required under
New York Public Health Law for new applications for such AOAs, so
as to allow the debtor to consummate a proposed sale of its
expired AOA for $50,000 to a prospective purchaser desiring to
avoid this administrative review process. The issue involved a
"matter of vital concern affecting the public health, safety and
welfare," which was committed to a New York administrative agency.
In re Cabrini Medical Center, --- B.R. ----, 2010 WL 1418862
(Bankr. S.D.N.Y.) (Gonzalez, C.J.).
Jurisdiction: Bankruptcy court lacked jurisdiction to intrude
into public health questions for purpose of facility sale of
asset.
About Cabrini Medical Center
Cabrini Medical Center was an operator of an acute care voluntary
hospital on East 19th Street in Manhattan. The facility ceased
operating as a hospital in March 2008.
The Company sought Chapter 11 protection (Bankr. S.D.N.Y. Case No.
09-14398) on July 9, 2009. Frank A. Oswald, Esq., at Togut, Segal
& Segal LLP represents the Debtor. The Company estimated its
assets at $50 million to $100 million, and its debts at
$100 million to $500 million, at the time of the filing.
Memorial Sloan-Kettering Cancer Center has offered to buy the
Debtor's facility for $83.1 million, and the Debtor has been
receiving DIP financing from The Missionary Sisters of the Sacred
Heart.
CAVE LAKES: Gets Nod to Obtain Unsecured Postpetition Financing
---------------------------------------------------------------
Cave Lakes Canyon, LLC, sought and obtained authorization from the
U.S. Bankruptcy Court for the District of Nevada to obtain
unsecured, postpetition financing from Dr. Pirtish Patel.
The DIP lenders have committed to provide up to $50,000. The
Lender has already provided the Debtor with $25,000 and has agreed
to an additional $25,000.
Neil J. Beller, Ltd., Esq., explained that the Debtor needs the
money to fund its Chapter 11 case, pay suppliers and other
parties. The Loan will protect the interests of all secured
lenders, as well as the unsecured creditors. The Loan will
protect the interests of all secured lenders, as well as the
unsecured creditors. The Loan will allow for payment of expenses
in the ordinary course of business.
The principals of the Debtor have, and will, personally guarantee
the Loan. The term of the Loan will be one year. The interest
rate is 6% per annum to be paid at the end of the loan term.
The Debtor was unable to obtain financing placing a lender in a
junior position to the current two First Deeds of Trust on the
property -- a real property in Kanab, Utah consisting of 40
adjoining parcels of land -- held by Marvin and Patricia Baker in
the sum of $288,406.07.
Las Vegas, Nevada-based Cave Lakes Canyon, LLC, filed for Chapter
11 bankruptcy protection on July 1, 2010 (Bankr. D. Nev. Case No.
10-22419). Neil J. Beller, Esq., in Las Vegas, Nevada, serves as
the Debtor's bankruptcy counsel. The Debtor disclosed $18,283,110
in total assets and $4,122,607 in total debts as of the Petition
Date.
CBGB HOLDINGS: Ch. 11 Case Dismissed After Trademarks Lost
----------------------------------------------------------
The Hon. Stuart M. Bernstein dismissed the Chapter 11 bankruptcy
case of CBGB Holding LLC on December 1, 2010.
The Debtor is directed to pay to the United States Trustee the
appropriate sum required pursuant to 28 U.S.C. Sec. 1930.
As reported by the Troubled Company Reporter on October 18, 2010,
Judge Bernstein ruled that the late CBGB nightclub founder Hillel
"Hilly" Kristal's estate -- not CBGB Holdings -- is the rightful
owner of the legendary punk rock music club's assets, including
its name.
Bill Rochelle, the bankruptcy columnist for Bloomberg News,
reported that Judge Bernstein explained in his opinion how the
estate of Hillel Kristal foreclosed the trademarks and other
property before CBGB Holdings' Chapter 11 petition was filed in
June. The estate for Krystal, who was known as Hilly, also asked
Bernstein to dismiss the CBGB Chapter 11 case on the theory there
isn't any property to reorganize.
The TCR also reported that Kristal estate attorney, Fred Stevens,
Esq., a partner at Fox Rothschild LLP, said in an interview his
client is "very interested in entertaining any offers that will be
best for the brand and Hilly's legacy.
About CBGB Holdings
CBGB Holdings LLC purchased the name and copyrights associated
with Manhattan's legendary punk-rock club CBGB in 2008 for $3.5
million. The purchase price consisted of $1.1 million in cash and
a $2.4 million promissory note secured by the purchased assets.
Dow Jones' Daily Bankruptcy Review says the terms of that note
were designed to essentially unwind the transaction and give the
assets back to the Kristal estate if CBGB Holdings defaulted. The
Company did so in February, when the note came due and it didn't
pay it off. The two parties struck a forbearance agreement,
however, which gave CBGB Holdings several additional months to pay
off the loan. Under that agreement, the Kristal estate was given
the right to foreclose on the assets without further notice if the
note wasn't paid off by the end of the forbearance period.
CBGB Holdings filed for Chapter 11 protection (Bankr. S.D.N.Y.
Case No. 10-13130) on June 11, 2010, to thwart the estate's
attempt to foreclose on the club's assets. Judge Stuart M.
Bernstein presides over the case. Kenneth A. Reynolds, Esq., at
McBreen & Kopko, in Jericho, New York, serves as the Debtor's
counsel. The petition listed $1 million to $10 million in assets
and debts.
In October 2010, Judge Stuart M. Bernstein of the U.S. Bankruptcy
Court in Manhattan ruled that the late CBGB nightclub founder
Hillel "Hilly" Kristal's estate -- not CBGB Holdings LLC -- is the
rightful owner of the legendary punk rock music club's assets,
including its name.
CINRAM INT'L: Bank Debt Trades at 22% Off in Secondary Market
-------------------------------------------------------------
Participations in a syndicated loan under which Cinram
International, Inc., is a borrower traded in the secondary market
at 77.70 cents-on-the-dollar during the week ended Friday,
December 3, 2010, according to data compiled by Loan Pricing Corp.
and reported in The Wall Street Journal. This represents a drop
of 0.40 percentage points from the previous week, The Journal
relates. The Company pays 175 basis points above LIBOR to borrow
under the facility. The bank loan matures on April 26, 2011, and
carries Moody's B3 rating and Standard & Poor's CCC rating. The
loan is one of the biggest gainers and losers among 201 widely
quoted syndicated loans with five or more bids in secondary
trading for the week ended Friday.
With headquarters in Toronto, Ontario, Canada, Cinram
International, Inc., is one of the world's largest independent
manufacturers, replicators and distributors of DVDs and audio CDs.
Cinram carries a 'Caa1' corporate family rating and a 'Caa2'
probability of default rating from Moody's Investors Service.
In June 2010, Moody's downgraded Cinram's speculative grade
liquidity rating to SGL-4 (indicating poor liquidity arrangements)
from SGL-3 (indicative of adequate liquidity arrangements) as a
consequence of the company's revolving credit facility being due
within the next four quarters. While the company has likely
initiated refinance discussions and Moody's expect management to
fully address this matter, the May 5, 2011 maturity date of the
company's credit facility mandates the SGL rating downgrade --
this is despite a sizeable cash balance ($134 million at March 31,
2010).
According to Moody's, the primary ratings influence is the
company's need to reinvent itself as the financial viability of
its core activity, CD and DVD replication, gradually wanes.
CITY THEATER: Case Summary & 12 Largest Unsecured Creditors
-----------------------------------------------------------
Debtor: City Theater, LLC
313 East Wilson Blvd., Suite 1
Hagerstown, MD 21740
Bankruptcy Case No.: 10-37196
Chapter 11 Petition Date: December 1, 2010
Court: United States Bankruptcy Court
District of Maryland (Greenbelt)
Judge: Wendelin I. Lipp
Debtor's Counsel: John Douglas Burns, Esq.
THE BURNS LAWFIRM, LLC
6303 Ivy Lane, Ste. 102
Greenbelt, MD 20770
Tel: (301) 441-8780
E-mail: burnslaw@burnslaw.algxmail.com
Estimated Assets: $0 to $50,000
Estimated Debts: $1,000,001 to $10,000,000
A list of the Company's 12 largest unsecured creditors
filed together with the petition is available for free
at http://bankrupt.com/misc/mdb10-37196.pdf
The petition was signed by Milton N. Stamper, managing member.
CLAIRE'S STORES: Reports $3.64-Mil. Net Income in Oct. 30 Quarter
-----------------------------------------------------------------
Claire's Stores Inc. reported its financial results for the fiscal
2010 third quarter, which ended October 30, 2010.
The Company report net income of $3.64 million for the three
months ended Oct. 30, 2010, compared with net income of
$2.89 million for the three months ended Oct. 31, 2009.
The Company reported net sales of $348.2 million for the fiscal
2010 third quarter, an increase of $23.8 million, or 7.3% compared
to the fiscal 2009 third quarter. The increase was attributable
to an increase in same store sales, new store sales and an
increase in shipments to franchisees, partially offset by foreign
currency effect of our foreign locations' sales and closed stores.
Sales would have increased 9.4% excluding the impact from foreign
currency rate changes.
The Company's balance sheet at Oct. 30, 2010, showed
$2.79 billion in total assets, $218.86 million in total current
liabilities, $2.62 billion in long-term debt, and a stockholder's
deficit of $47.89 million.
Adjusted EBITDA in the fiscal 2010 third quarter was $62.5 million
compared to $53.7 million in the fiscal 2009 third quarter. The
Company defines Adjusted EBITDA as earnings before provision for
income taxes, gain on early debt extinguishment, interest income
and expense, impairment, depreciation and amortization, excluding
the impact of transaction related costs incurred in connection
with its May 2007 acquisition and other non-recurring or non-cash
expenses, and normalizing occupancy costs for certain rent-related
adjustments.
Chief Executive Officer Gene Kahn commented, "The third quarter
results reflect the continuing improvement in same store sales and
EBITDA and are the result of a strong global effort to offer our
target customers a fashion right assortment of accessories and
jewelry to complement their lifestyle. The six priorities that we
put in place for 2010 have been a strong area of focus and are
contributing to our success."
A full-text copy of the earnings release is available for free
at http://ResearchArchives.com/t/s?7064
About Claire's Stores
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.
Claire's Stores carries 'Caa3' long term corporate family and
probability of default ratings, with 'stable' outlook, from
Moody's Investors Service, and 'B-' issuer credit ratings, with
'stable' outlook, from Standard & Poor's.
CLEAR CHANNEL: Bank Debt Trades at 20% Off in Secondary Market
--------------------------------------------------------------
Participations in a syndicated loan under which Clear Channel
Communications, Inc., is a borrower traded in the secondary market
at 79.75 cents-on-the-dollar during the week ended Friday,
December 3, 2010, according to data compiled by Loan Pricing Corp.
and reported in The Wall Street Journal. This represents a drop
of 0.39 percentage points from the previous week, The Journal
relates. The Company pays 365 basis points above LIBOR to borrow
under the facility. The bank loan matures on January 30, 2016,
and carries Moody's Caa1 rating and Standard & Poor's CCC rating.
The loan is one of the biggest gainers and losers among 201 widely
quoted syndicated loans with five or more bids in secondary
trading for the week ended Friday.
About Clear Channel
Clear Channel Communications, Inc. -- http://www.clearchannel.com/
-- is a diversified media company with three primary business
segments: radio broadcasting, outdoor advertising and live
entertainment. Clear Channel Communications is the operating
subsidiary of San Antonio, Texas-based CC Media Holdings, Inc.
Clear Channel carries a 'Caa2' corporate family rating from
Moody's Investors Service.
Clear Channel Capital I, LLC, the parent of Clear Channel
Communications, disclosed assets of $17.286 billion, total debts
of $24.495 billion, and a member's deficit of $7.209 billion.
Clear Channel reported a net loss of $364.92 million on
$2.753 billion of revenue for six months ended June 30, 2010.
CLEARWIRE COMMUNICATIONS: S&P Rates Senior Notes at 'CCC-'
----------------------------------------------------------
Standard & Poor's Ratings Services assigned its ratings to the
proposed Rule 144A notes issuances (without registration rights)
of Clearwire Communications LLC and Clearwire Finance Inc., direct
and indirect subsidiaries, respectively, of Clearwire Corp. The
company plans to use proceeds for general corporate purposes,
including the continued buildout of its wireless broadband
network.
S&P rated the company's proposed $500 million senior secured
second-lien notes due 2017 and $500 million exchangeable senior
notes due 2040 'CCC-' with a recovery rating of '6', indicating
S&P's expectations of negligible (0% to 10%) recovery for
noteholders in the event of a payment default.
In addition, the company plans to tack on $175 million to its
existing senior secured first-lien notes due 2015. The first-lien
notes are currently rated 'CCC' and are listed on CreditWatch with
developing implications. The recovery rating is '3', indicating
S&P's expectation of meaningful (50% to 70%) recovery for
noteholders in the event of a payment default. If the proposed
financing transaction is successful, S&P expects to raise its
issue-level rating on the first-lien notes to 'CCC+' and for the
recovery rating to remain unchanged.
Existing ratings on Kirkland, Wash.-based wireless carrier
Clearwire Corp., including the 'CCC' corporate credit rating,
remain on CreditWatch with developing implications. Total funded
debt is expected to be about $4 billion pro forma for the proposed
debt issuance.
The 'CCC' rating on Clearwire reflects near-term liquidity risks
and free operating cash outflows. S&P believes that without
additional funding to bolster liquidity, the company's cash
balances would reach dangerously low levels in early 2011, given
its substantial capital requirements and operating losses to
support the deployment of its 4G wireless network. Cash totaled
around $1.4 billion as of Sept. 30, 2010.
If the proposed financing contributes gross proceeds of about
$1.175 billion or more at terms currently contemplated, this would
improve near-term liquidity, although S&P does not believe it
would adequately address the company's longer-term funding
requirements, especially if it plans to launch more markets beyond
the 120 million population equivalents currently expected by year-
end 2010. Moreover, S&P believes there would still be substantial
execution risk associated with Clearwire's business plans, given
its position as a developmental stage company operating in a
highly competitive industry, as well as the uncertain prospects of
its WiMax technology.
The developing CreditWatch implications reflect that S&P would
likely raise the corporate credit rating by one notch to 'CCC+'
upon successful completion of the proposed financing, with a
rating outlook to be determined. (S&P's existing issue-level
ratings on the company's debt would also be raised in turn.) If
the company fails to access the capital markets or obtain funding
via a spectrum sale or infusion by its equity partners by early
2011, however, S&P would likely lower the rating.
Ratings List
Clearwire Corp.
Corporate Credit Rating CCC/Watch Dev/--
New Ratings
Clearwire Communications LLC
Clearwire Finance Inc.
$500M sr secd second-lien nts due 2017 CCC-
Recovery Rating 6
$500M exch sr nts due 2040 CCC-
Recovery Rating 6
CLEARWIRE CORPORATION: Moody's Assigns 'B2' Rating on Senior Notes
------------------------------------------------------------------
Moody's Investors Service has assigned a (P)B2 rating to Clearwire
Communications LLC's proposed $175 million Senior Secured 1st Lien
Notes due 2015 and a (P)Caa2 rating to Clearwire's proposed
$500 million Senior Secured 2nd Lien Notes due 2017. Clearwire
intends to use the proceeds of the proposed issuance, in
conjunction with a planned $500 million exchangeable note offering
(unrated by Moody's) for general corporate uses and network
expansion. Clearwire's ratings remain under review with direction
uncertain. Assuming the note offerings close as planned, Moody's
would assign definitive ratings to the new notes. In addition,
Moody's would upgrade Clearwire's existing Senior Secured 1st Lien
Notes to B2 from Caa1 as a result of the additional loss
protection provided by the issuance of more junior securities.
Moody's is continuing its review of Clearwire's ratings with
direction uncertain because of the fluid situation regarding the
Company's ability to fund the full build-out of its business plan
and its relationship with its key strategic partner.
If Clearwire successfully completes the proposed issuance, as part
of its ongoing review Moody's would assess the likelihood and
magnitude of additional funding from Sprint in the context of
Clearwire's total financing needs to complete its nationwide
buildout. Moody's views the pending issuance as a temporary
measure. The proposed offering is a means for Clearwire to
prolong its existence and operate within its year-end 2010
footprint, while strategic direction from Sprint and other key
investors is further negotiated.
Moody's has taken these rating actions:
-- New $175 Million Senior Secured 1st Lien Notes due 2015,
Assigned (P)B2 (LGD2 -- 17%)
-- New $500 Million Senior Secured 2nd Lien Notes due 2017,
Assigned (P)Caa2 (LGD4 -- 52%)
"This choice of capital allocation is sub-optimal as it represents
an expensive alternative, suggesting that the disagreements
between the Company and its strategic owners are continuing," said
Moody's Senior Vice President Dennis Saputo. In addition to
increasing the financial stress on Clearwire, the limited amount
raised relative to what Moody's believes is required to maintain
first-mover advantage threatens to lengthen the pause in network
construction, surrendering additional ground to the competition.
"The choice to increase leverage at this time sends a clear signal
to bond holders that the company is committed to maximizing equity
value and represents a meaningful increase in Clearwire's risk
profile," Saputo continued.
If the dispute with Sprint lingers and Clearwire does not obtain
additional funding or if it raises significant additional debt,
its operating and financial profile may well come under
significant pressure, which could have negative implications for
the rating.
If Sprint and Clearwire quickly resolve their disagreements and
Clearwire receives significant additional equity funding from
Sprint that allows it to continue rapid expansion of 4G coverage,
Clearwire's competitive position, earnings and financial profile
could become stronger than Moody's currently envision and the
investment would solidify the strategic importance of Clearwire to
Sprint, potentially having positive rating implications.
Moody's views Clearwire's liquidity as good, and projects the
company will exit 2010 with approximately $2.0 billion in cash,
including the proceeds from the announced notes offerings.
Clearwire does not maintain a revolving credit facility.
The last rating action taken by Moody's on Clearwire was on
November 15, 2010, when the company was put on review, direction
uncertain.
Clearwire Corporation provides wireless high-speed services to
over 50 markets in the U.S. as well as a few markets in Europe.
The Company maintains its headquarters in Kirkland, Washington.
CONSPIRACY ENTERTAINMENT: Posts $412,000 Net Loss in 3rd Qtr.
-------------------------------------------------------------
Conspiracy Entertainment Holdings, Inc., reported a net loss of
$411,974 on $901,667 of net sales of three months ended Sept. 30,
2010, compared with a net loss of $5,336,115 on $1,334,224 of net
sales for three months ended Sept. 30, 2009.
The Company's balance sheet at September 30, 2010, showed
$5,256,462 in assets, $10,216,852 in liabilities and a $4,960,390
stockholders' deficit.
The 32.9% decrease in revenues was primarily attributable to the
release of Rock of the Dead (PS3TM X360) being postponed until the
fourth quarter of 2010.
"Due to the delay of certain title releases, our revenues this
quarter were less than we expected to report, however our profit
has increased, expenses decreased and we look forward to finishing
the year strongly," commented Sirus Ahmadi, CEO of Conspiracy
Entertainment.
The 4th Quarter 2010 will include Rock of the Dead (PS3TM and
X360) that was released in mid-October. In addition, the Company
continues to receive strong reorders for Real Heroes: Firefighter
(Wii) as well as previous popular titles. The Company is also
gearing up for the February 2011 release of The Ultimate Battle of
the Sexes (Wii).
Ahmadi added, "We are very pleased with the growth of our Company
over the past three years and our prospects for the immediate and
long term future. We will continue to communicate effectively and
efficiently with our shareholders regarding corporate developments
as well as title releases. The Company is well positioned to
continue building shareholder value through the end of FY '10 and
beyond."
Details of the Company's quarterly results are filed and available
on Form 10-QSB at http://ResearchArchives.com/t/s?706d
About Conspiracy Entertainment
Conspiracy Entertainment Holdings, Inc. (OTC BB: CPYE) through its
wholly owned subsidiary, Conspiracy Entertainment Corporation, is
a developer, publisher and marketer of entertainment software in
North America and Western Europe. Conspiracy Entertainment was
founded in 1997 and is based in Santa Monica, California.
CONTECH CONSTRUCTION: Moody's Confirms 'Caa1' Corp. Family Rating
-----------------------------------------------------------------
Moody's Investors Service confirmed Contech Construction Products,
Inc.'s Caa1 Corporate Family Rating. In a related rating action
Moody's changed Contech's Probability of Default Rating to Caa2/LD
("Limited Default") since it converted approximately $240 million
of debt to equity. Moody's will remove the PDR's LD modifier
after three business days. Moody's also lowered the ratings of
the senior secured bank credit facility to Caa1 from B3. The
rating outlook is stable. These rating actions conclude the
review initiated on September 22, 2010.
These ratings/assessments were affected by this action:
-- Corporate Family Rating confirmed at Caa1;
-- Probability of Default Rating downgraded to Caa2/LD; and,
-- $510 million senior secured bank credit facility due
01/31/2013 downgraded to Caa1 (LGD3, 34%) from B3 (LGD3, 32%)
Ratings Rationale
The Caa1 Corporate Family Rating reflects ongoing pressures in the
North American construction industry, the driver of Contech's
revenues, combined with the company's credit metrics even after
completing a debt-to-equity conversion. Moody's expects that
homebuilding will remain at anemic levels through 2011, and
private non-residential construction will face stagnant growth
over the same time period. The federal government is investing
significantly on infrastructure programs, but states and
municipalities, grappling with diminished tax revenues and
resultant deficits, may moderately increase spending on their
infrastructure maintenance and repair programs. Despite the
reduction in approximately $240 million of balance sheet debt,
Contech's key credit metrics including debt leverage and interest
coverage on a pro forma basis are still indicative of highly
speculative grade characteristics. However, over time, Moody's
believes that operating margins should improve as the company
benefits from its cost cutting initiatives.
The stable outlook incorporates Moody's view that current
availability under Contech's revolving credit facility with no
maturities until January 2013, and reduced debt service
requirements give it some financial flexibility to contend with
the near-term pressures in its construction end markets.
The change in the company's Probability of Default Rating results
from Contech's balance sheet restructuring. Contech converted all
of the principal amount and accrued interest owed on its mezzanine
notes due 2014, representing approximately $240 million of debt,
for equity. Moody's views these transactions as a distressed
exchange. The Caa2 Probability of Default Rating, one notch lower
than the Caa1 Corporate Family Rating, assumes a 65% family
recovery rate. Historical recovery studies indicate that bank
only debt in a corporate capital structure has higher recovery
values than capital structures with bank debt and other debt
instruments. This is further explained in Moody's Loss Given
Default Rating Methodology.
The downgrade of the $510 million senior secured bank credit
facility to Caa1 from B3 results from the elimination of the
mezzanine notes in Contech's capital structure. The bank credit
facility, the preponderance of Contech's debt, no longer benefits
from more junior capital in a recovery scenario and has the same
rating as its corporate family rating.
An upgrade could ensue when Contech demonstrates an improvement in
its operating margins and ability to generate significant amounts
of free cash flow. An improved liquidity profile and operating
performance that results in debt/EBITDA remaining below 6.5 times
on a sustainable basis or (EBITDA - CAPEX)/interest expense
comfortably above 1.5 times (all ratios adjusted per Moody's
methodology) may result in positive rating actions.
Factors that might stress the ratings include erosion in the
company's financial performance due to continued weakness in
Contech's end markets or deterioration in the company's liquidity
profile. (EBITDA - CAPEX)/interest expense remaining below 1.0
times (adjusted per Moody's methodology) for an extended period of
time could pressure the rating.
Contech Construction Products, Inc., headquartered in West
Chester, OH, manufactures and markets corrugated steel and plastic
pipe and fabricated products for use in highway, residential, and
commercial construction.
CRAWFORD & CO: S&P Affirms 'BB-' Rating on Senior Secured Loan
--------------------------------------------------------------
Standard & Poor's Ratings Services said it affirmed its 'BB-'
rating on Crawford & Co.'s planned senior secured term loan due in
October 2013 following the incremental $50 million issuance. At
the same time, Standard & Poor's affirmed the 'BB-' counterparty
credit rating and maintain the stable outlook.
"S&P expects the $50 million borrowings under the incremental term
loan will be priced at LIBOR plus 325 basis points," said Standard
& Poor's credit analyst Neil Stein. "The increase will stand pari
passu with the company's existing senior secured credit facility
and will be subject to the same amended financial covenant
maintenance performance."
Standard & Poor's does not believe that the increase will change
Crawford's debt-servicing capabilities significantly, although
leverage metrics will deteriorate reflecting the additional
borrowings. "S&P expects the transaction to provide the company
with additional financial flexibility and reduce potential
earnings volatility and liquidity constraints generated by the
pension obligations," said Mr. Stein.
Crawford has indicated that it will use the proceeds to make a
contribution to the U.S. pension plan, which is $158 million
underfunded as of Oct. 31, 2010. The company aims to fully fund
its pension obligation by 2016.
The 'BB-' counterparty credit rating on Crawford reflects the
claims administrator's high debt leverage, weak quality of
capital, and limited financial flexibility. Weak operating
performance within the Broadspire Management Inc. segment and
significant underfunded pension obligations, which create
volatility in the financial statements and constrain liquidity,
are also weaknesses to the rating. The stable outlook is based on
Crawford's market position as the largest independent provider of
global claims management solutions.
CROWNBROOK DEBCO: Judge Dismisses Nicos Polymers Case
-----------------------------------------------------
Judge Burton R. Lifland of the U.S. Bankruptcy Court in Manhattan
signed off on the dismissal of Nicos Polymers Group's bankruptcy
case after the Company struck a deal allowing its lender to put it
on the auction block, Dow Jones' Small Cap reports.
According to the report, Judge Lifland signed the order dismissing
Nicos's Chapter 11 proceeding, court papers show. The report
relates the order paved the way for lender Fifth Street Finance
Corp. to put Nicos on the auction block at the offices of its
attorneys.
As reported in the Troubled Company Reporter on October 18, 2010,
Dow Jones' DBR Small Cap reports that Nicos Polymers Group filed
for bankruptcy protection, one day before mezzanine funds of
specialty finance company Fifth Street Finance Corp. were
scheduled to auction the company's assets. According to the
report, Ronald Schinik, the manager of Nicos, said in separate
court papers that a combination of declining sales and liquidity
issues made it "difficult" for Nicos to service its debt
obligations to the funds. Although the parties entered
negotiations to restructure Nicos's debt, the funds "abruptly"
provided the company notice that they plan to sell all of Nicos's
assets and scheduled an auction, Mr. Schinik said, the report
added.
About Nicos Polymers Group
Nicos Polymers Group -- http://www.nicospolymers.com/-- is an
industrial plastics recycler. CrownBrook Debco LLC, formed by an
investment group, purchased Nicos Polymers in 2007.
Crownbrook Debco, LLC, dba Nicos Polymers Group, filed for Chapter
11 protection (Bankr. S.D.N.Y. Case No. 10-15345) on Oct. 13, 2010
in Manhattan. Samuel Jason Teele, Esq., at Lowenstein Sandler,
P.C., in New Jersey, serves as counsel to the Debtor. The Debtor
estimated assets at $1 million to $10 million and debts at
$10 million to $50 million in its Chapter 11 petition.
CVB FINANCIAL: Fitch Cuts Individual Rating to 'C' From 'B/C'
-------------------------------------------------------------
Fitch Ratings has downgraded the long-term Issuer Default Ratings
and Individual ratings of CVB Financial Corp. and related
subsidiaries to 'BBB' and 'C' from 'BBB+' and 'B/C' respectively.
The company's rating Outlook is Stable.
The downgrade reflects Fitch's concerns regarding both CVBF's
level of commercial real estate, which represents approximately
38% of total assets and 65% of total loans accordingly to
regulatory data, and Fitch's views toward CRE as articulated in
the agency's Special Report 'U.S. Bank CRE Exposure Review' (dated
Nov. 16, 2009), as well as its broader views on the industry. The
downgrade is also illustrative of Fitch's previously articulated
concerns regarding the potential credit volatility present in
CVBF's larger borrower concentrations. While management has been
aggressively addressing the challenges associated with the
company's largest lending relationship as additional credit costs
associated with it were realized during third quarter 2010
(3Q'10), total non-performing loans excluding this credit have
continued to trend upward over the past five consecutive quarters.
Fitch's downgrade also is reflective of CVBF's and the industry's
revenue challenges, which coupled with asset quality challenges
(albeit manageable), aligns CVBF's overall performance with
Fitch's 'BBB' rated peers.
Reflected in the Stable Outlook are various actions CVBF has made
to enhance the company's sound balance sheet fundamentals.
Providing additional ratings support are the company's robust
capital levels and strong liquidity, which Fitch believes are
managed to prudent levels for this rating category. Predominantly
funded through core deposits, CVBF has also greatly reduced its
reliance on borrowed funds over the past nine months, which has
helped to delever the balance sheet.
While credit quality is anticipated to remain pressured, CVBF's
financial performance is expected to remain steady with sustained
profitability, consistent with the respective ratings. A loan
portfolio less skewed by CRE exposure and enhanced earnings growth
beyond recent trends could also have positive rating implications.
Conversely, should credit losses escalate beyond Fitch's current
expectations of stress, creating pressure on earnings and/or
capital levels, negative rating actions could ensue. Fitch also
acknowledges the uncertainties and potential ramifications of the
SEC investigation focusing on loan underwriting guidelines,
allowance for credit losses, and loan grading methodology, and
will respond accordingly should there be any material negative
developments.
Headquartered in Ontario, CA, CVB Financial is a $6.5 billion bank
holding company and the sole shareholder of its principal banking
subsidiary, Citizens Business Bank, which operates via 44 branches
and six commercial lending centers located across the Inland
Empire, Los Angeles County, Orange County, and the Central Valley
areas of California. CVBF also offers wealth management services
through its Citizens Trust division, which held approximately
$2 billion in total assets under administration at Sept. 30, 2010.
These ratings are downgraded with a Stable Outlook.
CVB Financial Corp.
-- Long-Term IDR to 'BBB' from 'BBB+';
-- Individual Rating to 'C' from 'B/C';
-- Subordinated Debt to 'BBB-' from 'BBB'.
Citizens Business Bank
-- Long-term IDR to 'BBB' from 'BBB+';
-- Long-term Deposits to 'BBB+' from 'A-';
-- Individual Rating to 'C' from 'B/C'.
CVB Statutory Trust I, II, and III
FCB Capital Trust I and II
-- Preferred stock to 'BB+' from 'BBB-'
These ratings are affirmed with a Stable Outlook.
CVB Financial Corp.
-- Short-Term IDR at 'F2';
-- Support at '5';
-- Support Floor at 'NF'.
Citizens Business Bank
-- Short-Term IDR at 'F2';
-- Short-Term Deposits at 'F2';
-- Support at '5';
-- Support Floor at 'NF'.
DAVID MARCOE: Court OKs Use of First Horizon's Cash Collateral
--------------------------------------------------------------
David Brian Marcoe and Lori Lucille Marcoe signed a stipulation
with First Horizon Home Loan to the Debtors' use of cash
collateral. The Hon. Brian D. Lynch of the U.S. Bankruptcy Court
for the Western District of Washington has approved the
stipulation.
The Stipulation affects the real property commonly known as: 937
Northwest 49th Street, Seattle, WA 98107. The parties agree that
the Debtor will tender all cash collateral from rental income of
the Property to First Horizon. Payments will be made directly to
Secured Creditor, 4000 Horizon Way Mail Code 6206, Irving, TX
75063, with reference to the last four digits of the Loan Number
4432, or as otherwise directed.
First Horizon is represented by McCarthy & Holthus, LLP.
As reported by the Troubled Company Reporter on November 3, 2010,
the Debtors asked for authorization from the Court to use the cash
collateral of Sterling Savings Bank and First Horizon and
Chase. The Debtors need access to all rents related to the eleven
unit project at 3116-3128 Franklin Ave. E, Seattle, and Kismet Two
LLC. The Debtors need to use the cash collateral to preserve,
maintain, and protect the real properties; and provide management
compensation to the Debtors for the costs of maintaining the
properties and dealing with tenant issues.
About David Brian Marcoe
Seattle, Washington-based David Brian Marcoe and David Brian
Marcoe and Lori Lucille Marcoe are owners of a number of
townhouses, duplexes and residential real properties located in
King County. Their 18 primary business was the design and
construction of new construction projects.
The Marcoes filed for Chapter 11 protection on September 15, 2010
(Bankr. W.D. Wash. Case No. 10-20975). Cynthia A. Kuno, Esq., at
Hanson Baker Ludlow Drumheller PS, serves as the Debtors'
bankruptcy counsel. The Debtors disclosed $10,339,222 in total
assets and $10,573,203 in total liabilities.
DEAN FOODS: S&P Downgrades Corporate Credit Rating to 'B+'
----------------------------------------------------------
Standard & Poor's Ratings Services said that it lowered its
corporate credit rating on Dallas-Texas based Dean Foods Co. and
its wholly owned subsidiary Dean Holding Co. to 'B+' from 'BB-'.
The outlook is negative.
S&P lowered its issue-level rating on the company's senior secured
debt, consisting of revolving credit and term loan facilities, to
'BB-' (one notch higher than the corporate credit rating) from
'BB'. The recovery rating remains '2', indicating S&P's
expectation for substantial (70% to 90%) recovery in the event of
a payment default. At the same time, S&P lowered its issue-level
rating on the company's unsecured debt, consisting of senior notes
at Dean Foods Co. and Dean Holding Co. to 'B-' (two notches below
the corporate credit rating) from 'B'. The recovery rating
remains '6', indicating S&P's expectation for negligible (0% to
10%) recovery in the event of a payment default.
"The downgrade reflects S&P's concerns regarding the company's
continuing poor operating performance and difficult industry
conditions, which include decreasing sales volumes, increasing raw
materials costs, declining retail prices and retailer driven
pricing pressures," said Standard & Poor's credit analyst Jeff
Burian.
The rating outlook is negative reflecting S&P's concerns regarding
the company's operating performance and financial covenant cushion
into the first half of 2011. S&P would consider lowering the
ratings if the EBITDA cushion on Dean Foods' leverage covenant
declines well below 10%. Absent an amendment of the existing
leverage financial covenant, S&P estimates this could occur as a
result of the covenant step-down at the end of June 2011, unless
the company can achieve quarterly EBITDA increases adequate to
maintain rolling 12 months EBITDA near its current level.
Although unlikely in the near term, S&P would consider raising the
rating if Dean Foods significantly improved its covenant cushion,
dairy industry conditions improved considerably, and the company
reduced its adjusted leverage to well below 5.0x. S&P would
consider revising the outlook to stable if the company is able to
adequately address its covenant cushion concerns with the
expectation of maintaining a cushion of more than 10%.
S&P's ratings on Dean Foods reflect its view that the company has
a fair business risk profile, due to its exposure to U.S. dairy
industry conditions which include reduced demand and a shift by
consumers away from higher margin branded milk sales in response
to aggressive retailer price discounting of private label milk.
Dean benefits from its position as the leading national dairy
company in the U.S., with close to a 40% market share, with a
portfolio of national, regional, local, and private-label brands
also with solid regional market positions. S&P characterizes Dean
Foods' financial risk profile as highly leveraged based on the
company's highly leveraged capital structure, aggressive financial
policies and weak financial covenant cushion.
Dean Foods is the leading U.S. processor and distributor of
branded dairy products with solid positions in ice cream and other
dairy products, including soy and organic milk products. Dean
Foods' distribution network is extensive and covers all channels,
including grocery and club retailers, drug and mass merchandisers,
convenience stores, and food service. The company's refrigerated
direct-store delivery system (5,800 company-owned routes) or its
national distribution system serve these channels. In light of
the current retail pricing environment for milk, characterized by
heavy retailer discounting of private label brands and consumer
sentiment to trade down in a weak economy, Standard & Poor's
expects that in the near term, Dean Foods will accelerate its
cost-savings initiatives to stem a further erosion in
profitability resulting from this mix shift toward lower margin
private-label product.
DIGICEL LIMITED: Moody's Assigns 'B1' Rating on $300 Mil. Notes
---------------------------------------------------------------
Moody's Investors Service has assigned a B1 rating to the
$300 million expansion of Digicel Limited's 8.25% senior unsecured
notes due 2017. The new notes will be used for general corporate
purposes. In addition, Moody's affirmed Digicel Group Limited's
corporate family rating and probability of default rating, both at
B2, and maintained the stable rating outlook. In conjunction with
the rating action, Moody's affirmed the ratings on the existing
DGL debt and on the existing debt at DL, a wholly-owned subsidiary
of DGL. The company also has an $819 million senior secured
credit facility at its Digicel International Finance Ltd.
subsidiary, which Moody's does not rate.
Ratings Rationale
Moody's expects that consolidated leverage at DGL following the
new issuance will be approximately 5.4x on a Moody's adjusted
basis. Moody's believes that the company will manage its adjusted
leverage back down to under 5.0x over the next two years, given
EBITDA growth related to continued successful market expansion,
particularly in the South Pacific territories, and increasing cash
flow contributions from Haiti, as well as the mandatory
amortization of the company's term loan.
Digicel's B2 corporate family rating is supported by its leading
position as the largest wireless telecommunications carrier in the
Caribbean. In addition, the company has delevered from 10x levels
following the recapitalization of the company's balance sheet in
early 2007.
The company's very good liquidity supports the rating. Moody's
expect that the company will end FY 2011 with about $550 million
in cash on the balance sheet, and as of 9/30/10 the company had
$56 million available on the revolver held at Digicel
International Finance Limited. Moody's expect free cash flow of
approximately $40 million for FY2011, but in FY2012 Moody's expect
cash flows will be negative mainly due to high capital
expenditures and high interest payments.
Digicel's ongoing expansion into new markets outside its Caribbean
core, on top of continued cash consumption to support service
enhancement in its territories as competition increases, weighs
down the rating. Moody's expect the company to continue
consolidating sister entities owned by DGL's primarily
shareholder, Denis O'Brien, most likely by accessing the debt
capital markets. The rating is also tempered by the uneven
recovery in the global economy, and Digicel's increasing exposure
to higher risk and more competitive markets, such as Central
America for its cash flow growth.
Moody's most recent rating action for Digicel was on March 15,
2010. At that time Moody's assigned a Caa1 rating to DGL's new
$775 million note issuance.
Incorporated in Hamilton, Bermuda, Digicel is the largest provider
of wireless telecommunication services in the Caribbean.
DISCOVERY LABS: Gets Nasdaq Delisting Notification on Bid Price
---------------------------------------------------------------
Discovery Laboratories, Inc. disclosed that, on November 30, 2010,
the Company received a Staff Determination letter from The Nasdaq
Stock Market indicating that the Company has not established
compliance with Nasdaq Listing Rule 5550(a)(2) because the
Company's common stock did not maintain a minimum closing bid
price of $1.00 per share over a period of 10 consecutive business
days ending on or prior to November 29, 2010. As a result, the
Company's common stock is subject to delisting from The NASDAQ
Capital Market(R). The Company plans to request a hearing before
a Nasdaq Listing Qualifications Panel to review the Staff
Determination, which request will stay the delisting of the
Company's common stock pending the Panel's decision. At the
hearing, the Company will present a plan for achieving compliance
with the Nasdaq listing requirements. There can be no assurance
that the Panel will grant the Company's request for continued
listing on the Nasdaq Capital Market.
The Company is currently in compliance with all Nasdaq listing
requirements other than the Minimum Bid Price Rule. In that
regard, the Company has presented to its stockholders for approval
at the upcoming Annual Meeting of Stockholders to be held on
December 21, 2010, a proposal to provide the Company's Board of
Directors with authority to effect a share consolidation, or
reverse split, of the Company's common stock at a ratio of 1-for-
15, on the terms described in the Company's proxy statement. In
presenting Proposal 3 for approval, the Board considered, among
other things:
-- Effecting a reverse split would, at least initially, return
The Company's stock price to well above $1.00 per share,
which would support continued listing of the Company's
common stock on the Nasdaq Capital Market.
-- The Company believes that continued listing on the Nasdaq
Capital Market would enhance the Company's prospects of
securing capital necessary to achieve the Company's key
business objectives, including potentially gaining U.S.
Food and Drug Administration (FDA) approval in 2011 for the
Company's lead product, Surfaxin(R) for the prevention of
Respiratory distress syndrome (RDS) in premature infants.
-- The Company believes that current and prospective investors
and potential strategic partners would view an investment in
the Company's common stock more favorably if it were listed
on the Nasdaq Capital Market than if it were traded on the
Over-The-Counter Bulletin Board.
-- If the Company's common stock were delisted from the Nasdaq
Capital Market, the Company would no longer be eligible to
effect financings with registration statements on Form S-3,
which would make it more difficult and more expensive (i) to
raise additional capital through limited primary and
secondary offerings and (ii) to update and maintain
the effectiveness of the available forms of registration
statements going forward.
If Proposal 3 is not approved by the Company's stockholders at the
Company's Annual Meeting of Stockholders, the Company may be
unable to maintain the listing of its common stock on the Nasdaq
Capital Market, which could jeopardize the Company's ability to
continue to fund its operations, gain FDA approval for Surfaxin,
and continue investing in its research and development programs,
including Surfaxin LS(TM), a lyophilized (dry powdered)
formulation, and Aerosurf(R), the Company's initial aerosolized
KL4 surfactant. Such a result could have a material adverse
effect on the Company, its financial condition and its business
operations.
If the Panel were to deny the Company's request for continued
listing, the liquidity and marketability of the Company's common
stock would be adversely affected. Following delisting, the
Company's common stock would be eligible for quotation on the
Over-The-Counter Bulletin Board, another over-the-counter
quotation system or the "pink sheets," but only after a market
maker, not the Company, made application for that purpose.
Background
On December 2, 2009, the Company received a delisting notification
from The NASDAQ Global Market indicating that the Company's common
stock failed to achieve a minimum closing bid price of $1.00 per
share for more than 30 consecutive trading days and, as a result,
the Company was not in compliance with the Minimum Bid Price Rule.
The delisting notification also granted the Company 180 calendar
days, or until June 1, 2010, to regain compliance with the Minimum
Bid Price Rule, which would occur if the Company's common stock
closed above $1.00 per share for 10 consecutive trading days.
Subsequently, on June 2, 2010, the Company transferred the listing
of its common stock to The Nasdaq Capital Market and, under
applicable rules, was afforded an additional period of 180
calendar days, or until November 29, 2010, to regain compliance
with the Minimum Bid Price Rule. The Nasdaq Capital Market
operates in substantially the same manner as the Global Market.
The Company's trading symbol continued to be "DSCO" and the
trading of the Company's common stock was unaffected by the
transfer.
About Discovery Labs
Discovery Laboratories, Inc. is a biotechnology company developing
surfactant therapies for respiratory diseases. Surfactants are
produced naturally in the lungs and are essential for breathing.
Discovery Labs' novel proprietary KL4 surfactant technology
produces a synthetic, peptide-containing surfactant that is
structurally similar to pulmonary surfactant and is being
developed in liquid, aerosol or lyophilized formulations.
DIVERSIFIED INDUSTRIES: Files Proposal to Creditors Under BIA
-------------------------------------------------------------
Diversified Industries Ltd. disclosed, further to its news release
November 24, 2010, that on December 2, 2010 it filed a Proposal to
Creditors under the Bankruptcy and Insolvency Act, R.S.C. 1985, as
it can no longer meet its financial commitments as they come due.
The Company has appointed G. Powroznik Group Inc., of G-Force
Group of Vancouver, B.C., as its trustee.A copy of the Proposal is
posted on the trustee's website, at http://www.g-
forcegroup.ca/current-projects/diversified-industries.Approval of
the Proposal requires a simple majority of the Company's
creditors, representing two thirds of proven claims filed, and
then approval by the Court.
If approved by the creditors and the Court, implementation of the
Proposal will eliminate the Company's debt, cause a sale of all of
the Company's shares in CFR Chemicals Inc., all the Company's
patents rights and certain contingent claims receivable, and
preserve the tax pools as the only remaining material asset of the
Company. If the Proposal is not approved either by the creditors
or the Court, then the Company will immediately become
bankrupt.The Company anticipates that the Proposal will be
accepted.
DJSP ENTERPRISES: Forbearance with BofA Lapses
----------------------------------------------
DJSP Enterprises Inc. said in a Dec. 1 regulatory filing that the
forbearance agreement with Bank of America NA, the revolving
credit lender, ran out on Nov. 26.
DAL Group LLC, a subsidiary of DJSP Enterprises, is a party to a
forbearance agreement with Bank of America, N.A. pursuant to which
the Bank agreed to not take any action in connection with a
default on a revolving line of credit for a period ending November
26, 2010. DAL is engaged in continuing discussions with the Bank
regarding the Line of Credit. In connection with those
discussions, on November 30, 2010, DAL repaid $3.5 million of
principal on the Line of Credit, reducing the outstanding
principal balance to $8.43 million.
On November 24, 2010, the Company received a letter from The
NASDAQ Stock Market notifying it that for the prior 30 consecutive
business days, the Company's publicly held securities failed to
maintain a minimum market value of $15,000,000, consequently, a
deficiency exists with regard to this requirement for continued
listing pursuant to NASDAQ Listing Rule 5450(b)(2)(C). NASDAQ
further stated that in accordance with NASDAQ Listing Rule
5810(c)(3)(D), the Company will be provided 180 calendar days, or
until May 23, 2011, to regain compliance with the MVPHS Rule.
NASDAQ will deem the Company to have regained compliance if at any
time before May 23, 2011 the market value of the Company's
publicly held securities closes at $15,000,000 or more for a
minimum of ten consecutive business days.
On November 26, 2010, the Company received a letter from NASDAQ
notifying it that for the prior 30 consecutive business days, the
Company's listed securities failed to maintain a minimum market
value of $50 million, consequently, a deficiency exists with
regard to this requirement for continued listing pursuant to
NASDAQ Listing Rule 5450(b)(2)(A). NASDAQ further stated that in
accordance with NASDAQ Listing Rule 5810(c)(3)(C), the Company
will be provided 180 calendar days, or until May 25, 2011, to
regain compliance with the MVLS Rule. NASDAQ will deem the
Company to have regained compliance if at any time before May 25,
2011 the market value of the Company's listed securities closes at
$15,000,000 or more for a minimum of ten consecutive business
days.
These notifications do not impact the listing and trading of the
Company's securities at this time. However, the NASDAQ letters
also state that, if the Company does not regain compliance with
the MVPHS Rule by May 23, 2011 or the MVLS Rule by May 25, 2011,
the Company will receive written notification from NASDAQ that the
Company's securities are subject to delisting. The Company is
reviewing its options for regaining compliance with the MVLS Rule
and MVPHS Rule and for remedying other future potential non-
compliances with Nasdaq continued listing requirements, including
the requirement to maintain a minimum bid price of at least $1.00
per share. There can be no assurance that the Company will be
able to regain compliance with the MVLS Rule, MVPHS Rule or other
Nasdaq continued listing requirements in a timely fashion, in
which case its securities would be delisted from Nasdaq.
A purported class action complaint, entitled Mowat, et al v. DJSP
Enterprises, Inc., et al., Case No. 10-cv-62302, has been filed
against the Company in the United States District Court for the
Southern District of Florida, although the Company has not yet
been served with the complaint. The complaint alleges that the
Company violated the Worker Adjustment and Retraining Notification
Act by failing to provide notices to employees alleged to be
required under the WARN Act in connection with its recently
announced reductions in staffs and seeks recovery of damages as
provided for under the WARN Act. If served with the complaint in
this matter, the Company intends to vigorously defend itself in
this matter.
About DJSP Enterprises
Based in Plantation, Florida, DJSP Enterprises, Inc. (Nasdaq:
DJSP, DJSPW, DJSPU) provides a wide range of processing services
in connection with mortgages, mortgage defaults, title searches
and abstracts, REO (bank-owned) properties, loan modifications,
title insurance, loss mitigation, bankruptcy, related litigation
and other services. Its principal customer is The Law Offices of
David J. Stern, P.A. It has additional operations in Louisville,
Kentucky and San Juan, Puerto Rico. Its U.S. operations are
supported by a scalable, low-cost back office operation in Manila,
the Philippines, that provides data entry and document preparation
support for its U.S. operations.
David Stern's firm and three other large firms are being
investigated by Florida Attorney General Bill McCollum for
submitting false or misleading statements in foreclosure
proceedings.
EDGAR CAMACHO: Case Summary & 8 Largest Unsecured Creditors
-----------------------------------------------------------
Joint Debtors: Edgar Enrique Camacho
Rosalinda Urdaneta Camacho
180 Promenade Circle
Lake Mary, FL 32746
Bankruptcy Case No.: 10-28987
Chapter 11 Petition Date: December 1, 2010
Court: United States Bankruptcy Court
Middle District of Florida (Tampa)
Debtor's Counsel: Stanley J. Galewski, Esq.
GALEWSKI LAW GROUP PA
201 E. Kennedy Blvd, #760
Tampa, FL 33602
Tel: (813) 222-8210
Fax: (813) 222-8211
E-mail: stan@galewski.com
Scheduled Assets: $703,429
Scheduled Debts: $2,728,340
A list of the Joint Debtors' eight largest unsecured
creditors filed together with the petition is available for
free at http://bankrupt.com/misc/flmb10-28987.pdf
EDROS INVESTMENT: Case Summary & Largest Unsecured Creditor
-----------------------------------------------------------
Debtor: Edros Investment Corporation
180 Promenade Circle
Lake Mary, FL 32746
Bankruptcy Case No.: 10-28988
Chapter 11 Petition Date: December 1, 2010
Court: United States Bankruptcy Court
Middle District of Florida (Tampa)
Debtor's Counsel: Stanley J. Galewski, Esq.
GALEWSKI LAW GROUP PA
201 E. Kennedy Blvd, #760
Tampa, FL 33602
Tel: (813) 222-8210
Fax: (813) 222-8211
E-mail: stan@galewski.com
Scheduled Assets: $899,724
Scheduled Debts: $1,700,490
In its list of 20 largest unsecured creditors, the Company placed
only one entry:
Entity Nature of Claim Claim Amount
------ --------------- ------------
Well Fargo Home Mortgage 1001 Greenwood Blvd. $1,700,490
7495 New Horizon Way Lake Mary, FL 32746
Frederick, MD 21703
The petition was signed by Edgar and Rosalinda Camacho, president
and vice president.
ELEPHANT TALK: Notes, Warrants Automatically Converted to Stock
---------------------------------------------------------------
Elephant Talk Communications Inc. said, on November 19, 2010, the
twenty-day average closing price of the company's common stock
exceeded $3.18.
As a result and pursuant to their terms, all outstanding 12%
convertible promissory notes issued in connection with the
Company's 2009 private placement offering of units consisting of
Notes and warrants to purchase shares of the Company's common
stock, no par value, plus all interest due the holder of the Note,
automatically converted into common stock at the previously
established conversion price of one (1) share of common stock per
each $1.35 in principal plus interest due. The Units are more
fully described in the Company's Current Reports on Form 8-K filed
with the Securities and Exchange Commission on August 6, 2009,
August 24, 2009, September 10, 2009, October 5, 2009 and November
10, 2009 and in the Company's quarterly filings on Form 10-Q and
annual report for the year ended December 31, 2009 filed with the
Commission on March 31, 2010.
As of November 20, 2010, the Notes only represented the right to
receive such issuable shares of common stock. Further, upon the
automatic conversion of the Notes and pursuant to the terms of the
Notes, the amounts due thereunder were deemed fully paid and
satisfied and there will be no further Notes outstanding. In
connection with the automatic conversion of the Notes, the Company
expects to issue approximately 3,644,775 shares of common stock.
In aggregate, including shares previously issued upon conversion
of a portion of the Notes, the Company will have issued 9,933,419
shares in connection with the conversion of all of the Notes.
About Elephant Talk
Lutz, Fla.-based Elephant Talk Communications, Inc. (OTC BB: ETAK)
-- http://www.elephanttalk.com/-- is an international provider of
business software and services to the telecommunications and
financial services industry.
The Company's balance sheet at Sept. 30, 2010, showed
$41.68 million in total assets, $69.79 million in total
liabilities, and a stockholders' deficit of $28.10 million.
Stockholders' deficit was $14.9 million at June 30, 2010.
* * *
As reported in the Troubled Company Reporter on April 7, 2010,
BDO Seidman, LLP expressed substantial doubt about the Company's
ability to continue as a going concern, following the Company's
results for 2009. The independent auditors noted that the Company
incurred a net loss of $17.4 million, used cash in operations of
$5.4 million and had an accumulated deficit of $62.3 million.
EVERGREEN ENERGY: Gets Non-Compliance Notice From NYSE Arca
-----------------------------------------------------------
Evergreen Energy Inc. was notified by the NYSE Arca Inc. on
Monday, November 29, 2010 that it was not in compliance with the
NYSE Arca's continued listing standards under Rule 5.5(b)(2) and
Rule 5.5(b)(1) of the NYSE Arca Equities Rules. The standards
require that a listed common stock must maintain an average
closing price in excess of $1.00 over a consecutive 30 trading-day
period and that a company must maintain a market value of publicly
held shares of at least $15.0 million.
Evergreen is exploring alternatives for curing this deficiency and
restoring compliance with the continued listing standards. The
company's common stock will remain listed on the NYSE Arca
exchange under the symbol "EEE," but will be assigned a ".BC"
indicator by the NYSE Arca to show that the company is currently
out of compliance with the NYSE Arca's continued listing
standards.
As required by Rule 5.5(b) of the NYSE Arca Equities Rules,
Evergreen is required to notify the NYSE Arca of its intent and
plan to cure this deficiency within 10 business days of receipt of
this notice. If Evergreen does not regain compliance with the
listing standards during the recovery period, its common stock
will be subject to suspension and delisting by the NYSE Arca.
Evergreen Energy
Evergreen Energy Inc. has developed two proven, proprietary,
patented, and transformative green technologies: the GreenCert(TM)
suite of software and services and K-Fuel(R). GreenCert, which is
owned exclusively by Evergreen, is a science-based, scalable
family of environmental intelligence solutions that quantify
process efficiency and greenhouse gas emissions from energy,
industrial and agricultural sources and may be used to create
verifiable emission reduction credits. K-Fuel technology
significantly improves the performance of low-rank coals, yielding
higher efficiency and lowering emissions.
FAIRPOINT COMMUNICATIONS: Has Plan Exclusivity Until Jan. 31
------------------------------------------------------------
Bill Rochelle, the bankruptcy columnist for Bloomberg News,
reports that FairPoint Communications Inc. won an extension until
Jan. 31 of the exclusive right to propose a Chapter 11 plan, in
case the plan awaiting confirmation isn't eventually pushed
through. The bankruptcy judge couldn't confirm the Chapter 11
plan in May for lack of regulatory approval from Vermont, New
Hampshire and Maine. He overruled other objections to
confirmation. New Hampshire and Maine later settled. The company
is working on a resolution with Vermont regulators.
About FairPoint Communications
FairPoint Communications, Inc. (NYSE: FRP) --
http://www.fairpoint.com/-- owns and operates local exchange
companies in 18 states offering advanced communications with a
personal touch, including local and long distance voice, data,
Internet, television and broadband services. FairPoint is traded
on the New York Stock Exchange under the symbols FRP and FRP.BC.
FairPoint and its affiliates filed for Chapter 11 protection on
Oct. 26, 2009 (Bankr. D. Del. Case No. 09-16335). Rothschild Inc.
is acting as financial advisor for the Company; AlixPartners, LLP
as the restructuring advisor; and Paul, Hastings, Janofsky &
Walker LLP is the Company's counsel. BMC Group is claims and
notice agent.
As of June 30, 2009, FairPoint reported $3.24 billion in total
assets, $321.41 million in total current liabilities,
$2.91 billion in total long-term liabilities, and $1.23 million in
stockholders' equity.
Andrews Kurth is counsel to the Official Committee of Unsecured
Creditors. Altman Vilandrie is the operational consultant to the
Creditors' Committee. Verrill Dana is the Creditors' Committee's
special regulatory counsel. Jeffries serves as the Creditors'
Committee's financial advisor.
FIRST FEDERAL: Incurs $5.36 Million Net Loss for Sept. 30 Quarter
-----------------------------------------------------------------
First Federal Bancshares of Arkansas Inc. filed its quarterly
report on Form 10-Q, reporting a net loss of $5.36 million on
$7.01 million of total interest income for the three months ended
Sept. 30, 2010, compared with a net loss of $23.23 million on
$8.69 million of total interest income for the same period a year
ago.
The Company's balance sheet at Sept. 30, 2010, showed
$632.34 million in total assets, $592.88 million in total
liabilities, and stockholders' equity of $39.46 million.
After taking into account dividends and discount accretion on the
Corporation's Fixed Rate Cumulative Perpetual Preferred Stock,
Series A, the net loss available to common shareholders was
$5.6 million for the three months ended September 30, 2010
compared to a net loss of $23.4 million for the three months ended
September 30, 2009.
Larry J. Brandt, CEO for the Corporation said, "The economic
recovery has been much slower than predicted at the beginning of
the year, which has continued to negatively affect our
profitability. We recorded $5.6 million in loan loss provisions
during the third quarter as well as $2.1 million in real estate
owned writedowns. However, the level of provisions and REO
writedowns is significantly less than it was during the same
periods in 2009. We have sold approximately $16 million of real
estate owned during 2010 by reducing the price on our properties
and aggressively marketing those properties. We have
significantly reduced our assets by $100 million since the first
of the year but both our deposits and liquidity continue to be
strong to support our banking operations. During 2010, we also
paid back over $41 million in borrowings from the Federal Home
Loan Bank in Dallas. We remain adequately capitalized with over 6%
core capital. We believe the worst is behind us but it will still
be a challenging time for us until the economy in Northwest
Arkansas has a significant recovery. We are in the final planning
for our capital raising efforts and we anticipate announcing those
plans during the fourth quarter of this year."
Total assets at September 30, 2010 amounted to $632.3 million,
total liabilities were $592.9 million and stockholders' equity
totaled $39.4 million or 6.2% of total assets. This compares with
total assets of $731.1 million, total liabilities of $687.8
million and stockholders' equity of $43.3 million or 5.9% of total
assets at December 31, 2009. At September 30, 2010 compared to
December 31, 2009, investment securities decreased by $57.2
million or 42.2% and cash and cash equivalents increased by $37.4
million or 168.9% due to issuers' calls and sales of securities in
excess of purchases of investment securities. Net loans
receivable decreased $80.4 million or 16.7%, primarily due to
repayments, transfers to REO and a decrease in loan originations.
The decrease in net loans receivable is related to the oversupply
of lots and homes in the Northwest Arkansas market and the general
slowdown in the housing market and the economy in general. The
$94.9 million or 13.8% decrease in total liabilities was primarily
due to a decrease of $41.1 million or 69.0% in other borrowings
and a decrease of $55.3 million or 8.9% in deposits. Funds
generated from investment calls and loan repayments were primarily
utilized to pay down borrowings and fund deposit withdrawals.
Stockholders' equity decreased by $3.8 million during the nine
month period ended September 30, 2010, primarily due to a net loss
from core operations of $3.8 million.
A full-text copy of the quarterly report on Form 10-Q is available
for free at http://ResearchArchives.com/t/s?705a
About First Federal Bancshares of Arkansas
First Federal Bancshares of Arkansas, Inc. (NASDAQ GM:FFBH)
-- http://www.ffbh.com/-- is a unitary savings and loan holding
company for First Federal Bank, a community bank serving consumers
and businesses with a full range of checking, savings, investment
and loan products and services. The Bank, founded in 1934,
conducts business from 20 full-service branch locations, one
stand-alone loan production office, and 30 ATMs located in
Northcentral and Northwest Arkansas.
At June 30, 2010, the Company was above the regulatory minimums
for tangible, core, total risk-based and tier 1 risk-based
capital. On April 12, 2010, the Company and the Bank each
consented to the terms of Cease and Desist Orders issued by the
Office of Thrift Supervision. The Orders impose certain
operations restrictions on the Company and, to a greater extent,
the Bank, including lending and dividend restrictions. The Orders
also require the Company and the Bank to take certain actions,
including the submission to the OTS of capital plans and business
plans to, among other things, preserve and enhance the capital of
the Company and the Bank and strengthen and improve the
consolidated Company's operations, earnings and profitability.
The Bank Order specifically requires the Bank to achieve and
maintain, by December 31, 2010, a tier 1 (core) capital ratio of
at least 8% and a total risk-based capital ratio of at least 12.0%
and maintain these higher ratios for as long as the Bank Order is
in effect. At June 30, 2010, the Bank's core and total risk-based
capital ratios were 6.46% and 11.40%. Had the Bank been required
to meet these capital requirements at June 30, 2010, it would have
needed additional capital of approximately $10.5 million.
As reported in the Troubled Company Reporter on April 21, 2010,
Deloitte & Touche LLP, in Little Rock, Ark., expressed substantial
doubt about the Company's ability to continue as a going concern
after auditing the Company's financial statements for the year
ended December 31, 2009. The independent auditors noted of the
Company's significant operating losses in 2009, significant levels
of criticized assets, and decline in capital levels.
FIRST FEDERAL: Gets Non-Compliance Letter From Nasdaq Market
------------------------------------------------------------
First Federal Bancshares of Arkansas Inc. announced that on
November 23, 2010, it received a letter from The Nasdaq Stock
Market, dated November 23, 2010, indicating that it is not in
compliance with the filing requirements for continued listing
under Nasdaq Marketplace Rule 5250(c)(1).
The Nasdaq letter was issued in accordance with standard Nasdaq
procedures due to the delayed filing of the Corporation's
quarterly report on Form 10-Q for the quarter ended September 30,
2010 with the U.S. Securities and Exchange Commission. As
previously disclosed, the Corporation required additional time to
file the Form 10-Q primarily due to the continuing analysis of the
loan portfolio of the Bank and the results of recent regulatory
examinations and correspondence. On November 30, 2010, the
Corporation filed its Quarterly Report on Form 10-Q for the
quarterly period ended September 30, 2010 with the U.S. Securities
and Exchange Commission.
Pursuant to the Nasdaq notification letter, the Corporation is
required to submit a plan to regain compliance with Nasdaq's
filing requirements for continued listing within 60 calendar days
of November 23, 2010. The Corporation anticipates that the filing
of its Form 10-Q on November 30, 2010 will eliminate the need to
submit a formal plan to regain compliance with Nasdaq's filing
requirements for continued listing.
About First Federal Bancshares of Arkansas
First Federal Bancshares of Arkansas, Inc. (NASDAQ GM:FFBH)
-- http://www.ffbh.com/-- is a unitary savings and loan holding
company for First Federal Bank, a community bank serving consumers
and businesses with a full range of checking, savings, investment
and loan products and services. The Bank, founded in 1934,
conducts business from 20 full-service branch locations, one
stand-alone loan production office, and 30 ATMs located in
Northcentral and Northwest Arkansas.
At June 30, 2010, the Company was above the regulatory minimums
for tangible, core, total risk-based and tier 1 risk-based
capital. On April 12, 2010, the Company and the Bank each
consented to the terms of Cease and Desist Orders issued by the
Office of Thrift Supervision. The Orders impose certain
operations restrictions on the Company and, to a greater extent,
the Bank, including lending and dividend restrictions. The Orders
also require the Company and the Bank to take certain actions,
including the submission to the OTS of capital plans and business
plans to, among other things, preserve and enhance the capital of
the Company and the Bank and strengthen and improve the
consolidated Company's operations, earnings and profitability.
The Bank Order specifically requires the Bank to achieve and
maintain, by December 31, 2010, a tier 1 (core) capital ratio of
at least 8% and a total risk-based capital ratio of at least 12.0%
and maintain these higher ratios for as long as the Bank Order is
in effect. At June 30, 2010, the Bank's core and total risk-based
capital ratios were 6.46% and 11.40%. Had the Bank been required
to meet these capital requirements at June 30, 2010, it would have
needed additional capital of approximately $10.5 million.
As reported in the Troubled Company Reporter on April 21, 2010,
Deloitte & Touche LLP, in Little Rock, Ark., expressed substantial
doubt about the Company's ability to continue as a going concern
after auditing the Company's financial statements for the year
ended December 31, 2009. The independent auditors noted of the
Company's significant operating losses in 2009, significant levels
of criticized assets, and decline in capital levels.
FLINT TELECOM: Has Deal for Kodiak to Invest Up to $15 Million
--------------------------------------------------------------
On November 26, 2010, Flint Telecom Group Inc. entered into an
Investment Agreement with Kodiak Capital Group, LLC, pursuant to
which Kodiak committed to purchase, from time to time over a
period of two years, shares of the Company's common stock, $0.01
par value per share for cash consideration up to $15 million,
subject to certain conditions and limitations. In connection with
the IA Agreement, the Company also entered into a registration
rights agreement with Kodiak, dated November 26, 2010.
The Company is also required to pay Kodiak a total of $20,000 in
cash, and issue to Kodiak 30,000,000 shares of restricted common
stock.
Investment Agreement
For a period of 24 months from the effectiveness of a registration
statement filed pursuant to the RRA Agreement, the Company may,
from time to time, at its discretion, and subject to certain
conditions that it must satisfy, draw down funds under the IA
Agreement by selling shares of its Common Stock to Kodiak up to an
aggregate of $15 million, subject to various limitations that may
reduce the total amount available to the Company. The purchase
price of these shares will be at a 5% discount to the "LCBBP" of
the Common Stock during the pricing period which is the five
consecutive trading days after the Company gives Kodiak a put
notice, under the IA Agreement. The "LCBBP" means, as of any
date, the lowest closing best bid price over a period of five
trading days after the Put.
The Company's ability to require Kodiak to purchase its Common
Stock is subject to various conditions and limitations. The
maximum amount of each Put is equal to, at Kodiak's election, 500%
of the average daily volume of the Common Stock for five trading
days prior to the applicable Put notice date, multiplied by the
average of the five daily closing bid prices immediately preceding
the Put Date, or $500,000. The Company shall not be entitled to
submit a Put until after the previous Put closing has been
completed.
The IA Agreement contains representations and warranties by the
Company and Kodiak which are typical for transactions of this
type. Kodiak agreed that during the term of the IA Agreement,
Kodiak will not enter into or execute any short sale of any shares
of the Common Stock as defined in Regulation SHO promulgated under
the Exchange Act. The IA Agreement also contains a variety of
covenants by the Company which are typical for transactions of
this type.
The IA Agreement obligates the Company to indemnify Kodiak for
certain losses resulting from a misrepresentation or breach of any
representation or warranty made by us or breach of any obligation
of the Company. Kodiak also indemnifies the Company for similar
matters.
A full-text copy of the Investment Agreement is available for free
at http://ResearchArchives.com/t/s?7058
A full-text copy of the Registration Rights Agreement is available
for free at http://ResearchArchives.com/t/s?7059
About Flint Telecom
Overland Park, Kan.-based Flint Telecom Group, Inc. (OTC BB: FLTT)
-- http://www.flinttelecomgroup.com/-- delivers next-generation
IP communications Products and Services. As part of the Company's
ongoing emphasis on streamlining its operations and reaching
sustainable profitability, during the year ended June 30, 2010,
the Company shut down and disposed of four operating companies:
CVC Int'l, Phone House Inc. of Florida, Dial-Tone Communications
and Starcom Alliance.
The Company's balance sheet as of September 30, 2010, showed
$2.16 million in total assets, $14.84 million in total
liabilities, and a stockholders' deficit of $12.68 million.
As reported in the Troubled Company Reporter on October 26, 2010,
L.L, Bradford & Company, LLC, in Las Vegas, Nev., expressed
substantial doubt about the Company's ability to continue as a
going concern, following the Company's results for the fiscal year
ended June 30, 2010. The independent auditors noted that the
Company has suffered losses from operations, negative cash flows
from operations and current liabilities exceed current assets.
GATEHOUSE MEDIA: Bank Debt Trades at 64% Off in Secondary Market
----------------------------------------------------------------
Participations in a syndicated loan under which GateHouse Media,
Inc., is a borrower traded in the secondary market at 35.64 cents-
on-the-dollar during the week ended Friday, December 3, 2010,
according to data compiled by Loan Pricing Corp. and reported in
The Wall Street Journal. This represents a drop of 0.43
percentage points from the previous week, The Journal relates.
The Company pays 200 basis points above LIBOR to borrow under the
facility. The bank loan matures on February 27, 2014, and carries
Moody's Ca rating and Standard & Poor's CCC- rating. The loan is
one of the biggest gainers and losers among 201 widely quoted
syndicated loans with five or more bids in secondary trading for
the week ended Friday.
GateHouse Media, Inc. -- http://www.gatehousemedia.com/--
headquartered in Fairport, New York, is one of the largest
publishers of locally based print and online media in the United
States as measured by its 97 daily publications. GateHouse Media
currently serves local audiences of more than 10 million per week
across 21 states through hundreds of community publications and
local Web sites.
The Company's balance sheet at June 30, 2010, showed
$572.2 million in total assets, $1.3 billion in total liabilities,
and a $795.1 million stockholders' deficit.
GENERAL MOTORS: Moody's Raises Corporate Family Rating to 'B1'
--------------------------------------------------------------
Moody's Investors Service raised the corporate family rating and
senior unsecured debt rating of General Motors Financial Company,
Inc. (formerly AmeriCredit Corp.) to B1 from B2 and assigned a
stable outlook. The rating action concludes the review for
possible upgrade which commenced on July 22, 2010.
Ratings Rationale
The upgrade is the result of the recent acquisition of the company
by General Motors Company (GM, Ba2/stable) and the incorporation
of one notch of support into the ratings. Moody's views of the
intrinsic credit strength of GMF have not changed materially,
therefore Moody's assessment of its stand-alone credit strength is
at the B2 level.
GMFCs ratings and outlook primarily reflect the company's
intrinsic credit strengths and challenges. GMF maintains a
significant position in the large and highly fragmented subprime
auto finance industry, a position that should be enhanced via
incremental captive loan and lease volumes resulting from its
ownership by new parent company GM. The ratings and outlook also
reflect the sustained improvement in GMF's financial fundamentals
as exemplified by improved delinquency and chargeoff metrics,
profitability, and liquidity position.
Balancing these positive factors, the ratings also reflect the
volatility of GMFC's asset quality and origination volumes, which
are highly sensitive to employment fundamentals, used car values,
and the overall health of the securitization market. The ratings
are also constrained by GMF's reliance on confidence sensitive
wholesale funding, in particular securitization funding and bank-
provided warehouse funding. This exposes the company to funding
disruptions and illiquidity in these markets, which created
significant challenges for the company as the economic and capital
markets downturn intensified in late 2008 and 2009.
In sum, this combination of credit strengths and challenges
results in a stand-alone assessment of B2 for GMF.
GMF's B1 corporate family and senior unsecured debt ratings
incorporate one notch of uplift from GM ownership and support.
Though a formal support agreement document is expected to be put
in place, the notch of rating uplift is based primarily on the
character and substance of the relationship between GM and GMF;
specifically, on GM's significant investment in GMF (approximately
$3.5 billion) and potential reputational risk to GM from non-
support of GMF. Additionally, in conjunction with GM's
acquisition of GMF on October 1, 2010, GM has provided GMF with a
$300 million 6-month unsecured revolving credit facility, proceeds
of which provide some assistance to GMF in its redemption of its
$420 million of convertible debt securities (as required due to
the change of control as a result of the merger).
GMF's strategic value to GM is evolving and is likely to become
more clear over time, in Moody's opinion. This will be an
important input into Moody's ongoing assessment of the uplift
incorporated into GMF's ratings from potential GM support.
Therefore, in the near to medium term further improvement in GM's
ratings will not necessarily result in an improvement in GMF's
ratings.
The last rating action on GMF was on July 22, 2010, when Moody's
placed the ratings under review for possible upgrade.
GMF, formerly known as AmeriCredit Corp., is an automobile finance
company providing financing solutions indirectly through auto
dealers across the United States, and is a wholly owned subsidiary
of GM. GMF has approximately 800,000 customers and $9 billion in
auto receivables. GM is one of the world's largest automakers; as
of September 30, 2010, GM reported total assets of $137 billion.
GIDEON LAND: Case Summary & 15 Largest Unsecured Creditors
----------------------------------------------------------
Debtor: Gideon Land Holdings LLC
2009 Via Teca
San Clemente, CA 92673
Bankruptcy Case No.: 10-21336
Chapter 11 Petition Date: December 1, 2010
Court: United States Bankruptcy Court
Southern District of California (San Diego)
Judge: Laura S. Taylor
Debtor's Counsel: Michael T. Pines, Esq.
PINES AND ASSOCIATES
732 N. Coast Highway 101, Ste B
Encinitas, CA 92024
Tel: (760) 642-0414
E-mail: info@pinesandassociates.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
A list of the Company's 15 largest unsecured creditors
filed together with the petition is available for free
at http://bankrupt.com/misc/casb10-21336.pdf
The petition was signed by Greg Strange, operating manager.
HANMI FINANCIAL: Outside Date Under Woori Deal Extended to Dec. 31
------------------------------------------------------------------
Hanmi Financial Corporation, the holding company for Hanmi Bank,
entered into Amendment No. 2 to the Securities Purchase Agreement,
dated May 25, 2010, by and between the Company and Woori Finance
Holdings Co. Ltd., as previously amended by Amendment No. 1 to
Securities Purchase Agreement, dated September 30, 2010.
The Amendment changes the Outside Date from November 15, 2010 to
December 31, 2010, frees the Company from exclusivity with Woori,
and eliminates the Company's obligation to pay a termination fee.
The Amendment allows the Company, if needed, to pursue further
fundraising efforts and alternative proposals to acquire control
of the Company.
In addition, the termination provision of the Agreement is
supplemented by the Amendment to allow either party to terminate
the Agreement in the event the Company sells any capital stock at
a price per share less than a $1.20, and Woori to terminate the
Agreement if sales of the Company's capital stock prior to the
Closing would result in Woori acquiring less than 40% of the
capital stock of the Company on an as-converted and fully-diluted
basis at the Closing, assuming the sale at the Closing of 175
million shares of common stock of the Company to Woori at $1.20
per share.
Finally, the Amendment also provides for a release of the Company
by Woori from liability for any losses that Woori may suffer on
or after the date of this Amendment as a result of a breach by
the Company of the capitalization or material contracts
representations in the Agreement. Woori is released by the
Company from liability for any losses that the Company may suffer
on or after November 15, 2010 as a result of a breach by Woori of
the knowledge of conditions representation in the Agreement.
On November 24, 2010, Woori informed the Company that on November
22, 2010, Woori filed a request with the Board of Governors of the
Federal Reserve System that processing of the application Woori
filed with the FRB on June 22, 2010 be suspended to allow
additional information regarding Woori's U.S. subsidiary bank to
be developed and provided to the FRB. The requested suspension
will continue until such time as the FRB staff determines that
processing of the application may continue.
"Woori has informed us that it is working diligently with its
subsidiary and the subsidiary's regulators with the goal of
receiving all required governmental approvals and closing its
proposed $210 million investment in our Company," said Jay Yoo,
President and Chief Executive Officer. "Woori indicated that the
suspension allows it additional time to develop the requested
information and address any issues raised by the subsidiary's
regulators without requiring Woori to withdraw its application and
restarting the application process from the beginning," added
President Yoo.
A full-text copy of the Amended Securities Purchase Agreement is
available for free at http://ResearchArchives.com/t/s?7057
About Hanmi Financial
Headquartered in Los Angeles, Hanmi Financial Corp. (Nasdaq: HAFC)
-- http://www.hanmi.com/-- is the holding company for
Hanmi Bank, a state chartered bank with headquarters located at
3660 Wilshire Boulevard, Penthouse Suite A, in Los Angeles.
Hanmi Bank provides services to the multi-ethnic communities of
California, with 27 full-service offices in Los Angeles, Orange,
San Bernardino, San Francisco, Santa Clara and San Diego counties,
and a loan production office in Washington State.
At September 30, 2010, the Company's balance sheet showed
$2.969 billion in total assets, $2.796 billion in total
liabilities, and stockholders' equity of $172.6 million.
As reported in the Troubled Company Reporter on March 17, 2010,
KPMG LLP, in Los Angeles, expressed substantial doubt about the
Company's ability to continue as a going concern, following its
2009 results. The independent auditors noted the Company and its
wholly-owned subsidiary Hanmi Bank, are currently operating under
a formal supervisory agreement with the Federal Reserve Bank of
San Francisco and the California Department of Financial
Institutions, which restricts certain operations of the Company
and requires the Company to, among other things, increase
contributed equity capital at Hanmi Bank by $100 million by
July 31, 2010, and achieve specified capital ratios by July 31,
2010, and December 31, 2010.
HARBOR FREIGHT: S&P Assigns 'B+' Corporate Credit Rating
--------------------------------------------------------
Standard & Poor's Ratings Services said that it assigned its
preliminary 'B+' corporate credit rating to Calabasas, Calif.-
based Harbor Freight Tools USA, Inc.
At the same time, S&P assigned its preliminary 'B+' bank loan
rating and preliminary '4' recovery rating to HFT's proposed
$775 million credit facility consisting of a $25 million revolver
and $750 million term loan. According to the company, proceeds
from the proposed term loan along with available cash will be used
to refinance existing bank debt of the company and pay about
$309 million dividend to the company's shareholders.
"The stable rating outlook indicates S&P's belief that, despite
its expectation for sales deceleration, HFT will at least maintain
existing credit metrics and adequate cushion to its financial
covenants as it continues to benefit from its value-proposition
retail strategy," said Standard & Poor's credit analyst Mariola
Borysiak.
The ratings reflect HFT's vulnerable business profile
characterized by its still relatively weak market position in the
intensely competitive and fragmented tools and equipment retailing
industry, its vulnerability to commodity price and S&P's
expectation that sales growth will decelerate in the near term.
In S&P's opinion, the proposed debt-financed $309 million dividend
is indicative of a very aggressive financial policy which results
in increased leverage and weaker cash flow protection measures.
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 57.21 cents-
on-the-dollar during the week ended Friday, December 3, 2010,
according to data compiled by Loan Pricing Corp. and reported in
The Wall Street Journal. This represents an increase of 0.50
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 201 widely quoted syndicated loans with
five or more bids in secondary trading for the week ended Friday.
About Herbst Gaming
Headquartered in Reno, Nevada, 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.
INDIANAPOLIS DOWNS: Cut by Moody's to 'Ca/LD' After Missed Payment
------------------------------------------------------------------
Moody's Investors Service lowered Indianapolis Downs, LLC's
Probability of Default Rating to Ca/LD from Caa3 and Corporate
Family Rating to Ca from Caa3. This designates that a limited
default has occurred with respect to certain of the company's debt
obligations. Moody's also lowered the company's 1st lien senior
secured credit facilities to B3 from B2, 2nd lien senior secured
notes to Ca from Caa3, and 3rd lien senior secured subordinated
notes to C from Ca. The rating outlook is negative.
Ratings downgraded and LGD assessments revised:
-- Corporate Family Rating to Ca from Caa3
-- Probability of Default Rating to Ca/LD from Caa3
-- Senior secured first lien revolver to B3 (LGD 1, 6%) from B2
(LGD 1, 5%)
-- Senior secured first lien term loan to B3 (LGD 1, 6%) from B2
(LGD 1, 5%)
-- Senior secured second lien notes to Ca (LGD 4, 54%) from Caa3
(LGD 4, 54%)
-- Senior secured third lien notes to C (LGD 6, 93%) from Ca
(LGD 6, 93%)
Ratings Rationale
This rating action reflects Indianapolis Downs' recent disclosure
that it had not made the November 1, 2010 scheduled interest
payment under its 2nd lien senior secured notes within the
allowable grace period. The limited default designation
acknowledges that Indianapolis Downs remains current with respect
to debt service payments on its 1st lien credit facility and its
3rd lien senior secured subordinated notes. As a payment default
is currently limited to one class of the company's debt, Moody's
considers this a limited default.
The downgrade also considers Moody's opinion that while
Indianapolis Downs is current with respect to debt service
payments on its 1st lien credit facility and its 3rd lien senior
secured subordinated notes, the company's capital structure is
unsustainable in its current form and at current levels of
operating performance. Debt/EBITDA is significant at over 13
times. As a result, Moody's believes that any restructuring of
its debt will likely result in some impairment to lenders.
Indianapolis Downs, LLC owns and operates Indiana Downs, a 180-
acre pari-mutuel horse racing facility located about 25 miles
southeast of Indianapolis, Indiana in Shelbyville, Indiana.
INGRID BAYSINGER: Case Summary & 20 Largest Unsecured Creditors
---------------------------------------------------------------
Debtor: Ingrid Mary Baysinger
10637 N. Sundown Drive
Scottsdale, AZ 85260
Bankruptcy Case No.: 10-38598
Chapter 11 Petition Date: December 1, 2010
Court: United States Bankruptcy Court
District of Arizona (Phoenix)
Judge: Randolph J. Haines
Debtor's Counsel: Allan D. Newdelman, Esq.
ALLAN D NEWDELMAN PC
80 E. Columbus Ave.
Phoenix, AZ 85012
Tel: (602) 264-4550
Fax: (602) 277-0144
E-mail: anewdelman@qwestoffice.net
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
A list of the Debtor's 20 largest unsecured creditors
filed together with the petition is available for free
at http://bankrupt.com/misc/azb10-38598.pdf
Debtor-affiliate that filed separate Chapter 11 petition:
Petition
Debtor Case No. Date
------ -------- ----
David M. Baysinger 10-07211 03/17/10
INSIGHT HEALTH: Reaches Deal With Noteholders on Chapter 11 Filing
------------------------------------------------------------------
InSight Health Services Holdings Corp. reached an agreement in
principle with holders of a significant majority in aggregate
principal amount of its outstanding senior secured floating rate
notes due 2011 regarding a restructuring of the Notes. Insight
Imaging has entered into a restructuring support agreement with
such holders, which contemplates restructuring the Notes through a
jointly agreed plan of reorganization to be filed with the
bankruptcy court. The terms of such pre-packaged plan are set
forth in a term sheet made part of the Support Agreement, but may
be amended or modified in accordance with the terms of the Support
Agreement. The terms of the Qualified Plan contemplate an
exchange of all of the Notes for all of the common stock of the
reorganized Company upon exit from bankruptcy, resulting in the
elimination of 100% of the Notes from the Company's balance sheet.
The Support Agreement provides that the Supporting Holders will,
among other things, vote to accept a Qualified Plan and support a
debtor-in-possession financing facility. The Company is currently
in discussions with Bank of America, N.A., the administrative
agent under its current revolving credit facility, regarding the
DIP Facility. The Support Agreement will require Insight Imaging
and certain of its subsidiaries to file a Qualified Plan with the
Court, obtain a confirmation order from the Court and effectuate
the Qualified Plan within the time-frames set forth in the Support
Agreement.
Insight Imaging also announced that holders of greater than 75% of
the principal amount outstanding of the Notes, the trustee under
the indenture governing the Notes and the collateral agent under
the security documents relating to the Notes have entered into an
agreement to forbear from exercising their remedies under the
Notes, the indenture and related security documents as a result of
events of default arising from the November 1, 2010 interest
nonpayment and the expiration of the applicable 30-day grace
period. The forbearance period ends not earlier than December 10,
2010, by which time the Company expects to have filed a
prepackaged plan of reorganization. Bank of America has also
extended the forbearance period under the Company's revolving
credit facility, as amended, from December 1, 2010 to December 15,
2010.
Kip Hallman, Insight Imaging's President and CEO, stated, "This
restructuring is being undertaken to eliminate more than $290
million of debt, substantially improving our cash and liquidity
position. We intend to complete the reorganization as quickly as
possible. In the meantime, we will continue to operate our
business as usual to provide quality services to our customers and
our patients. We look forward to emerging as a much stronger
business, with a capital structure that will enable us to maximize
the long-term value of the company."
The new securities issued pursuant to any plan of reorganization
have not been registered under the Securities Act of 1933, as
amended, or any state securities laws. Therefore, the new
securities may not be offered or sold in the United States absent
registration or an applicable exemption from the registration
requirements of the Securities Act and any applicable state
securities laws.
This release does not constitute a solicitation of contents to or
votes to accept any chapter 11 plan or an offer to purchase any
securities or a solicitation of an offer to sell any securities.
Any solicitation or offer will be made pursuant to a disclosure
statement and applicable law.
About InSight Health
Headquartered in Lake Forest, Calif., InSight Health Services
Holdings Corp. (OTC BB: ISGT) -- http://www.insighthealth.com/--
is a provider of retail and wholesale diagnostic imaging services.
The Company serves a diverse portfolio of customers, including
healthcare providers, such as hospitals and physicians, and
payors, such as managed care organizations, Medicare, Medicaid and
insurance companies, in over 30 states, including the following
targeted regional markets: California, Arizona, Texas, New
England, the Carolinas, Florida and the Mid-Atlantic states.
The Company's balance sheet at June 30, 2010, showed
$140.7 million in total assets, $321.3 million in total
liabilities, and a stockholders' deficit of $180.6 million.
* * *
PricewaterhouseCoopers LLP, in Orange County, Calif., expressed
substantial doubt about the Company's ability to continue as a
going concern, following its results for the fiscal year ended
June 30, 2010. The independent auditors noted that the Company
has suffered recurring losses from operations and has a net
capital deficiency.
Standard & Poor's Ratings Services said that it lowered its
ratings on InSight Health Services Holding Corp. to 'D' because
the company decided to forego its Nov. 1 2010, interest payment on
its senior secured floating rate notes due 2011.
INTEGRATED BIOPHARMA: Shareholders Ratify Friedman Appointment
--------------------------------------------------------------
On November 29, 2010, Integrated BioPharma Inc. held its 2010
Annual Meeting of Shareholders. A total of 20,619,342 shares of
the Company's common stock, par value $0.002 per share, were
entitled to vote as of the close of business on October 27, 2010,
the record date for the Annual Meeting. The holders of 17,858,755
shares of common stock, representing a majority of the shares
entitled to vote, were present in person or represented by proxy
at the Annual Meeting.
The shareholders voted to ratify the appointment of the Company's
independent auditors, Friedman LLP, for the fiscal year ending
June 30, 2011.
About Integrated BioPharma
Based in Hillside, N.J., Integrated BioPharma, Inc. (INBP.OB) --
-- http://www.healthproductscorp.us/-- is engaged primarily in
manufacturing, distributing, marketing and sales of vitamins,
nutritional supplements and herbal products. The Company's
customers are located primarily in the United States. The Company
was previously known as Integrated Health Technologies, Inc.. and,
prior to that, as Chem International, Inc. The Company was
reincorporated in its current form in Delaware in 1995. The
Company continues to do business as Chem International, Inc., with
certain of its customers and certain vendors.
The Company's balance sheet at Sept. 30, 2010, showed
$13.40 million in total assets, $18.93 million in total current
liabilities, and a stockholders' deficit of $5.52 million
Going Concern Doubt
Friedman, LLP, in East Hanover, N.J., 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 the Company has a working capital deficiency,
recurring net losses, has defaulted on its $7.8 million Notes
Payable due on November 15, 2009, and is in the process of seeking
additional capital and renegotiating its Notes Payable obligation.
INTERNATIONAL LEASE: Fitch Rates $1 Bil. Senior Notes at 'BB'
-------------------------------------------------------------
Fitch Ratings expects to rate International Lease Finance Corp.'s
$1 billion senior unsecured notes 'BB'.
This rating action does not affect ILFC's existing long-term
Issuer Default Rating of 'BB' or debt ratings. The Rating Outlook
for ILFC remains Evolving.
Fitch notes that the proposed issuance of $1 billion senior
unsecured notes is consistent with ILFC's overall financing plans
to repay near-term maturing debt obligations and for general
corporate purposes.
The notes will rank equally in right of payment with existing
senior unsecured debt. Covenants are consistent with previously
issued senior unsecured debt including a limitation restricting
the ability of ILFC to incur liens to secure indebtedness in
excess of 12.5% of ILFC's consolidated net tangible assets.
ILFC is a market leader in the leasing and remarketing of
commercial jet aircraft to airlines around the world. As of
Sept. 30, 2010, ILFC owned an aircraft portfolio with a net book
value of approximately $40 billion, consisting of approximately
939 aircraft.
Fitch expects to assign this rating to ILFC:
-- $1 billion senior unsecured notes 'BB'.
Fitch currently rates ILFC and its related subsidiaries:
ILFC
-- Long-term IDR 'BB';
-- Senior secured debt 'BBB-';
-- Senior unsecured debt 'BB';
-- Preferred stock 'B';
Delos Aircraft Inc.
-- Senior secured debt 'BB'.
ILFC E-Capital Trust I
-- Preferred stock 'B'.
ILFC E-Capital Trust II
-- Preferred stock 'B'.
INTERNATIONAL LEASE: Moody's Assigns 'B1' Rating on Senior Notes
----------------------------------------------------------------
Moody's Investors Service assigned a B1 rating to International
Lease Finance Corporation's benchmark senior unsecured notes, due
2020. The firm's B1 corporate family rating and stable outlook
are unchanged.
The Notes feature terms that are consistent with ILFC's existing
unsecured debt issuance, including certain restrictions on liens,
distributions, and asset transfers. The Notes will rank pari
passu with ILFC's other unsecured debt. ILFC will use Note
proceeds for general corporate purposes, including debt repayment.
The rating of the Notes is based on ILFC's fundamental credit
characteristics and the position of the Notes in ILFC's capital
structure.
ILFC's ratings are based on its competitive positioning in the
aircraft leasing industry, modern aircraft fleet and earnings
history. ILFC's ratings also incorporate one notch of rating
uplift associated with support from ultimate parent American
International Group. Constraints on the firm's rating and rating
outlook concern operating pressures resulting from the economic
downturn and its effect on lease rates, lease renewals and
aircraft valuations, as well as Moody's view that AIG support will
likely diminish over time. Moody's said that it will monitor
ILFC's evolving operational and funding strategies and their
effect on its credit profile, particularly in light of recent
changes in the ILFC management team.
ILFC has made progress improving its liquidity profile during
2010. Through the nine months ended September 30, 2010, the
company issued $8.8 billion of secured and unsecured debt, using
the proceeds to repay maturing loans and in the process extending
the firm's debt maturity profile. ILFC also extended the maturity
of $2.2 billion of its revolving bank facility to 2012 from 2011
and obtained additional covenant flexibility with respect to
pledging assets for additional secured financings. The new Notes
offering is incrementally beneficial in furthering the firm's
liquidity strengthening efforts. However, in Moody's view, ILFC's
reliance on confidence-sensitive wholesale funding is a continuing
source of credit risk, because the company's access to the capital
markets is uncertain.
In its last ILFC rating action dated August 11, 2010, Moody's
revised ILFC's rating outlook to stable from negative.
International Lease Finance Corporation, headquartered in Los
Angeles, California, is a major owner-lessor of commercial
aircraft.
INTERNATIONAL LEASE: S&P Assigns 'BB+' Rating on Senior Notes
-------------------------------------------------------------
Standard & Poor's Ratings Services said that it has assigned its
'BB+' rating to International Lease Finance Corp.'s proposed
issuance of senior notes due 2020. The company will issue the
notes as a drawdown from its existing Rule 415 shelf registration.
The company plans to use the proceeds for general corporate
purposes, including funding upcoming debt maturities.
S&P's ratings on ILFC were affirmed, removed from CreditWatch, and
assigned a negative outlook in June 2010. So far in 2010, the
company has made significant progress in addressing its large
near-term maturities, raising $8.5 billion in unsecured (not
including the proposed transaction) and secured debt, agreeing to
sell $2 billion in aircraft and extending $2.2 billion in maturing
bank borrowings to 2012. These actions, in combination with
expected internal cash generation over the period, should be
sufficient to meet $500 million of debt maturities in the
remainder of 2010 (following the repayment of a maturing credit
facility on Oct. 7, 2010) and $5.3 billion due in 2011. However,
maturities in 2012 ($6.2 billion) and 2013 ($4 billion) remain
sizable. Although S&P believes that parent AIG Inc. is likely to
remain committed to supporting ILFC based on current conditions,
S&P also believes there is still execution risk in efforts to
address upcoming maturities.
S&P could lower its ratings if S&P conclude there is less
certainty of AIG continuing to provide funding to ILFC to
supplement internal cash sources, or if adverse developments raise
material concerns regarding ILFC's long-term business prospects or
its ability to execute on liquidity initiatives.
Ratings List
International Lease Finance Corp.
Corporate credit rating BBB-/Negative/--
New Rating
International Lease Finance Corp.
Senior notes due 2020 BB+
ITRON INC: S&P Raises Corporate Credit Rating to 'BB-'
------------------------------------------------------
Standard & Poor's Ratings Services raised its corporate credit
rating on Liberty Lake, Wash.-based Itron Inc. to 'BB-' from 'B+'.
The outlook is positive. At the same time, S&P raised its issue-
level rating on the company's senior secured credit facilities to
'BB+' (two notches above the CCR) from 'BB-'. S&P also revised
the recovery rating to '1', indicating its expectation of very
high (90%-100%) recovery in a payment default scenario, from '2'.
S&P also raised the rating on the company's subordinated notes to
'B' from 'B-'. The recovery rating on the subordinated notes
remains '6', indicating S&P's expectation that lenders would
receive negligible (0%-10%) recovery in a payment default
scenario.
"The upgrade and positive outlook on Itron, a provider of
metering, data collection, and utility software solutions, reflect
the company's continued debt reduction, improving operating
performance, and good credit measures," said Standard & Poor's
credit analyst Robyn Shapiro. "The ratings on Itron reflect its
aggressive financial risk profile and fair business risk profile
as a leading global provider of products and services to electric,
gas and water utilities."
The company is a global supplier of automated meter reading
technology, with about a 46% market share in North America for
AMR-enabled electric, gas, and water meters, and roughly 30% share
of meter data management systems in North America. The company
estimates that only about 9% of the 2.7 billion electric, gas, and
water meters worldwide are automated, so there is additional room
for growth in AMR and advanced metering infrastructure
technologies.
The outlook is positive. "If it appears to us over the next few
quarters that the company is likely to sustain its good operating
performance and credit metrics, along with financial policies
commensurate with a higher rating, S&P could raise the ratings by
a notch," Ms. Shapiro added. "S&P could revise the outlook to
stable if operating performance declines and headroom under
financial covenants becomes limited, for example, if headroom
appears likely to decline to less than 10%."
JOHN KAMIN: Case Summary & 9 Largest Unsecured Creditors
--------------------------------------------------------
Debtor: John M. Kamin
110 Jug Road
York, PA 17404
Bankruptcy Case No.: 10-09723
Chapter 11 Petition Date: December 1, 2010
Court: United States Bankruptcy Court
Middle District of Pennsylvania (Harrisburg)
Judge: Mary D. France
Debtor's Counsel: Craig A. Diehl, Esq.
LAW OFFICES OF CRAIG A. DIEHL
3464 Trindle Road
Camp Hill, PA 17011-4436
Tel: (717) 763-7613
Fax: (717) 763-8293
E-mail: cdiehl@cadiehllaw.com
Scheduled Assets: $1,039,193
Scheduled Debts: $1,691,548
A list of the Debtor's nine largest unsecured creditors
filed together with the petition is available for free
at http://bankrupt.com/misc/pamb10-09723.pdf
L6 SYSTEMS: Case Summary & 20 Largest Unsecured Creditors
---------------------------------------------------------
Debtor: L6 Systems, LLC
3400 E. Coliseum Blvd., Suite 140
Fort Wayne, IN 46805
Bankruptcy Case No.: 10-15116
Chapter 11 Petition Date: December 1, 2010
Court: United States Bankruptcy Court
Northern District of Indiana (Fort Wayne Division)
Judge: Robert E. Grant
Debtor's Counsel: R. David Boyer II, Esq.
BOYER & BOYER
927 S Harrison Street, Suite 200E
Fort Wayne, IN 46802
Tel: (260) 407-7123
Fax: (260) 407-7137
E-mail: db2@boyerlegal.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
A list of the Company's 20 largest unsecured creditors
filed together with the petition is available for free
at http://bankrupt.com/misc/innb10-15116.pdf
The petition was signed by Ann Kaser, member, secretary treasurer.
LA PALOMA: S&P Affirms 'CCC+' Ratings on $265 Mil. Loan
-------------------------------------------------------
Standard & Poor's Ratings Services said that it affirmed its
'CCC+' ratings on La Paloma Generating Co. LLC's $265 million
($237.3 million as of Sept. 30, 2010) secured first-lien term loan
B due in 2012 and $40 million synthetic letter of credit facility,
and its 'CC' rating on La Paloma's second-lien $155 million term
loan C, due in 2013. The outlook is negative. At the same time,
S&P revised the recovery rating for the secured first-lien term
loan B and synthetic LOC facility to '1' from '2'.
The change in the recovery rating is based on S&P's default
valuation of the project on a comparison of asset-sales multiples,
and indicates S&P's expectation of very high (90% to 100%)
recovery of principal in the event of a default. The recovery
rating for the second-lien term loan C remains '6', indicating an
expectation of negligible (0%-10%) recovery in the event of a
default.
La Paloma Generating Co., a Delaware-based limited liability
company, is wholly owned by La Paloma Acquisition Co. (Acquisition
Co.). La Paloma's ultimate parent is Complete Energy Holdings,
which invests in energy industry projects. The 1,022 megawatt
facility is located near McKittrick, Calif. and consists of four
equal-sized ABB GT24-B combined-cycle gas turbines. Three of the
units operate under tolling agreements with Morgan Stanley Capital
Management Group, a subsidiary of Morgan Stanley (A/Negative/A-1).
La Paloma's fourth unit is dispatched to take advantage of
merchant opportunities.
The negative outlook reflects the potential for creditworthiness
to deteriorate further in the near term, given subpar financial
performance. Although new management actions have resulted in an
improved cost structure, results continue to be challenged by weak
power prices and lower ancillary revenue, along with higher-than-
budgeted maintenance costs.
LIBERTY MEDIA: Moody's Retains 'B1' Corporate Family Rating
-----------------------------------------------------------
Moody's Investors Service indicated that Liberty Media LLC's
exchange of its remaining interest in IAC/InterActive Corp. for
$220 million in cash and the Evite and Gifts.com businesses does
not affect Liberty's B1 Corporate Family Rating.
Moody's last rating on action Liberty occurred on June 21, 2010
when the company's B1 senior unsecured bond ratings and Ba3
Probability of Default Rating were placed on review for possible
downgrade following the company's announcement of plans to spin-
off its Liberty Starz and Liberty Capital tracking stock groups.
Liberty's ratings were assigned by evaluating factors that Moody's
considers relevant to the credit profile of the issuer, such as
the company's (i) business risk and competitive position compared
with others within the industry; (iii) capital structure and
financial risk; (iii) projected performance over the near to
intermediate term; and (iv) management's track record and
tolerance for risk. Moody's compared these attributes against
other issuers both within and outside Liberty's core industry and
believes Liberty's ratings are comparable to those of other
issuers with similar credit risk.
Liberty, headquartered in Englewood, Colorado, is a holding
company that owns and operates a broad range of electronic
retailing, communications, and entertainment businesses and also
owns equity and debt positions in wide variety of technology,
media and telecommunications companies. Revenue for the LTM
period ended 9/30/10 was approximately $10.8 billion.
LOCAL INSIGHT: Bank Debt Trades at 65% Off in Secondary Market
--------------------------------------------------------------
Participations in a syndicated loan under which Local Insight
Regatta Holding, Inc., is a borrower traded in the secondary
market at 34.50 cents-on-the-dollar during the week ended Friday,
December 3, 2010, according to data compiled by Loan Pricing Corp.
and reported in The Wall Street Journal. This represents a drop
of 2.88 percentage points from the previous week, The Journal
relates. The Company pays 400 basis points above LIBOR to borrow
under the facility. The bank loan matures on April 15, 2015.
Moody's has withdrawn its rating on the debt while it carries
Standard & Poor's Default rating. The loan is one of the biggest
gainers and losers among 201 widely quoted syndicated loans with
five or more bids in secondary trading for the week ended Friday.
About Local Insight Media Holdings
Wilmington, Delaware-based Local Insight Media Holdings, Inc., is
a publisher of print and online yellow page directories in the
United States. It filed for Chapter 11 bankruptcy protection on
November 17, 2010, (Bankr. D. Del. Case No. 10-13677).
Affiliates Local Insight Media Holdings II, Inc. (Bankr. D. Del.
Case No. 10-13679), Local Insight Media Holdings III, Inc. (Bankr.
D. Del. Case No. 10-13682), LIM Finance Holdings, Inc. (Bankr. D.
Del. Case No. 10-13680), LIM Finance, Inc. (Bankr. D. Del. Case
No. 10-13681), LIM Finance II, Inc. (Bankr. D. Del. Case No. 10-
13687), Local Insight Regatta Holdings, Inc. (Bankr. D. Del. Case
No. 10-13686), The Berry Company LLC (Bankr. D. Del. Case No. 10-
13678), Local Insight Listing Management, Inc. (Bankr. D. Del.
Case No. 10-13685), Regatta Investor Holdings, Inc. (Bankr. D.
Del. Case No. 10-13725), Regatta Investor Holdings II, Inc.
(Bankr. D. Del. Case No. 10-13741), Regatta Investor LLC (Bankr.
D. Del. Case No. 10-13684), Regatta Split-off I LLC (Bankr. D.
Del. Case No. 10-13721), Regatta Split-off II LLC (Bankr. D. Del.
Case No. 10-13753), Regatta Split-off III LLC (Bankr. D. Del. Case
No. 10-13737), Regatta Holding I, L.P. (Bankr. D. Del. Case No.
10-13748), Regatta Holding II, L.P. (Bankr. D. Del. Case No. 10-
13715), and Regatta Holding III, L.P. (Bankr. D. Del. Case No. 10-
13745) filed separate Chapter 11 petitions.
Richard M. Cieri, Esq., Christopher J. Marcus, Esq., and Ross M.
Kwasteniet, Esq., at Kirkland & Ellis LLP, assist the Debtors in
their restructuring efforts. Curtis A. Hehn, Esq., Laura Davis
Jones, Esq., and Michael Seidl, Esq., at Pachulski Stang Ziehl &
Jones LLP, are the Debtors' co-counsel.
The Debtors' investment banker and financial advisor is Lazard
Freres & Co. LLC. The Debtors' independent auditor is Deloitte &
Touche LLP. The Debtors' interim management and restructuring
advisors are Alvarez & Marsal North America, LLC, and Avarez &
Marsal Private Equity Performance Improvement Group, LLC.
Kurtzman Carson Consultants LLC is the Debtors' notice and claims
agent.
Local Insight Media Holdings estimated assets of less than $50,000
and liabilities of $100 million to $500 million in its Chapter 11
petition. In its latest Form 10-Q with the Securities and
Exchange Commission, Local Insight Regatta reported consolidated
assets of $796,270,000 against consolidated debts of $669,612,000
as of September 30, 2010.
LOEHMANN'S HOLDINGS: Files Exit Plan; To Sell if Plan Fails
-----------------------------------------------------------
Loehmann's Holdings Inc. filed its Chapter 11 plan of
reorganization and explanatory disclosure statement Wednesday
Dow Jones' Small Cap reports that under Loehmann's' plan,
unsecured creditors owed $26.2 million will share in a
$1.1 million payment if they vote in favor of the plan. As
Loehmann's previously announced, the plan's key terms include a
$25 million rights offering in which current owner Istithmar World
and senior secured noteholder Whippoorwill Associates Inc, the
report notes.
A hearing for approval of the Disclosure Statement is set for Jan.
5.
Dual-Track Plan
According to Bill Rochelle, the bankruptcy columnist for Blomberg
News, Istithmar, an investment firm owned by Dubai's government,
will provide 64 percent of the $25 million to buy new convertible
preferred stock.
According to Mr. Rochelle, under the Plan:
-- the $80.4 million owed on secured Class A notes will be
exchange for for 42.4 percent of the new common equity.
Class A noteholders can participate in a rights offering for
$25 million of preferred stock convertible into 47.2 percent
of the new common stock. The recovery on the Class A notes
is estimated to be 37.1 percent.
-- Class B noteholders, owed $38 million, are to receive 8.6
percent of the new common equity for a 13.8 percent
recovery.
-- General unsecured creditors, owed $26.2 million, should see
a 4.2 percent dividend by splitting up $1.1 million cash.
Mr. Rochelle notes that the loan agreement requires Loehmann's to
proceed on a dual track, in case the plan fails. In case the plan
isn't working, the loan agreement requires filing a motion by Jan.
14 to sell the business. The plan must be confirmed and
implemented by Feb. 18.
Restructuring Support Agreement
As reported in the Troubled Company Reporter on November 25, 2010,
Loehmann's Holdings has sought approval of a restructuring support
agreement and an investment agreement signed with 100% shareholder
Istithmar Retail Investments, and Whippoorwill Associates, as
agent for certain of its discretionary funds and accounts that are
legal and/or beneficial owners of the Company's notes. Under the
agreement, the investors have committed to investing $25 million
in the reorganized Debtors the form of new preferred equity
convertible into 49.1% of the new common stock of reorganized
Loehmann's Holdings. The agreement would include the payment of a
commitment fee equal to 4% of the new equity investment and
reimbursement of the reasonable professional fees and expenses
incurred by each of the investors. The Court scheduled a
December 13, 2010 hearing on the plan agreements.
About Loehmann's Holdings
Bronx, New York-based Loehmann's Holdings, Inc., is a discount
retailer with more than 60 stores. The Bronx, New York-based
company is owned indirectly by Istithmar PJSC, an investment firm
owned by the government of Dubai.
Loehmann's filed for Chapter 11 bankruptcy protection on
November 15, 2010 (Bankr. S.D.N.Y. Case No. 10-16077). It
estimated its assets and debts at $100 million to $500 million.
Affiliates Loehmann's Inc. (Bankr. S.D.N.Y. Case No. 10-16078),
Loehmann's Operating Co. (Bankr. S.D.N.Y. Case No. 10-16079),
Loehmann's Real Estate Holdings, Inc. (Bankr. S.D.N.Y. Case No.
10-16080), and Loehmann's Capital Corp. (Bankr. S.D.N.Y. Case No.
10-16081) filed separate Chapter 11 petitions.
Frank A. Oswald, Esq., at Togut, Segal & Segal LLP, assist the
Debtors in their restructuring efforts.
Perella Weinberg Partners LP is the Debtors' investment banker and
financial advisor. Clear Thinking Group LLC is the Debtors'
restructuring adviser. Troutman Sanders LLP is the Debtor's
special corporate counsel. Kurtzman Carson Consultants LLC is the
Debtors' claims and notice agent.
MEDALLION LTD: Case Summary & 20 Largest Unsecured Creditors
------------------------------------------------------------
Debtor: Medallion, Ltd.
6391 DeZavala Road
San Antonio, TX 78249
Bankruptcy Case No.: 10-54557
Chapter 11 Petition Date: November 30, 2010
Court: United States Bankruptcy Court
Western District of Texas (San Antonio)
Judge: Ronald B. King
Debtor's Counsel: James Samuel Wilkins, Esq.
WILLIS & WILKINS, LLP
100 W Houston St, Suite 1275
San Antonio, TX 78205
Tel: (210) 271-9212
Fax: (210) 271-9389
E-mail: jwilkins@stic.net
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
A list of the Company's 20 largest unsecured creditors
filed together with the petition is available for free
at http://bankrupt.com/misc/txwb10-54557.pdf
The petition was signed by William M. Worth, president of
Medallion Built Homes, Inc., Debtor's general partner.
METRO-GOLDWYN-MAYER: Court Confirms Pre-Packaged Plan
-----------------------------------------------------
Metro-Goldwyn-Mayer Inc. disclosed that the U.S. Bankruptcy Court
for the Southern District of New York has approved the company's
"pre-packaged" plan of reorganization, clearing the way for MGM
and its subsidiaries to emerge from Chapter 11 in short order. In
confirming the Plan, Judge Stuart M. Bernstein found that it
satisfied the various requirements of the U.S. Bankruptcy Code.
"Today's ruling is an important milestone for MGM," said Co-Chief
Executive Officer Stephen Cooper. "Thanks to the support of our
lenders and the hard work of our employees, we have moved through
the restructuring process quickly. By dramatically reducing MGM's
debt load and providing MGM with access to new capital, the
reorganization plan the Court confirmed today will enable MGM to
emerge from this process with a solid financial foundation and
will position MGM to be a successful studio going forward."
MGM expects the Plan to become effective by mid-December, once the
conditions of effectiveness have been met. Upon its emergence, the
Company's secured lenders will exchange approximately $5 billion,
including accrued interest and fees, for most of the equity in
MGM. MGM will be led by Gary Barber and Roger Birnbaum, who will
serve as Co-Chairman and Chief Executive Officers of MGM Inc. MGM
previously received approval, on November 12, 2010, from the Court
on its motion to retain JPMorgan Chase to arrange $500 million in
exit financing to fund operations, including production of a new
slate of films and television series, and expects to have that
exit financing funded by mid-December.
The Company's restructuring counsel are Skadden, Arps, Slate,
Meagher & Flom LLP and Klee, Tuchin, Bogdanoff & Stern LLP, its
restructuring advisor is Zolfo Cooper, and its financial advisor
is Moelis & Company.
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.
METRO-GOLDWYN-MAYER: Donlin Recano Tapped as Claims Agent
---------------------------------------------------------
Donlin, Recano & Company, Inc. has been retained to provide claims
and noticing agent services to Metro-Goldwyn-Mayer Studios Inc. in
its Chapter 11 case, in addition to having served as voting agent
for the pre-packaged plan of reorganization.
Movie giant Metro-Goldwyn-Mayer Studios Inc. filed for Chapter 11,
along with 159 related cases, in U.S. Bankruptcy Court for the
Southern District of New York on November 3, 2010.
"This pre-packaged bankruptcy is in an expedited Chapter 11
process which is keeping costs lower than what would have been the
case in a more standard restructuring," said Lou Recano, Chief
Executive Officer of DRC.
The Company's restructuring counsel are Skadden, Arps, Slate,
Meagher & Flom LLP and Klee, Tuchin, Bogdanoff & Stern LLP, its
restructuring advisor is Zolfo Cooper, and its financial advisor
is Moelis & Company.
About Donlin Recano
Donlin Recano -- http://www.king-worldwide.com/-- a division of
King Worldwide and a leader in claims, noticing, balloting and
technology solutions, also provides bondholder identification
services, pre-pack bankruptcy solicitation and balloting, crisis
communications, financial printing services and call center
services through one of the largest and most technologically
advanced call centers in the country. King Worldwide is a
financial communications, proxy solicitation and stakeholder
management company, serving over 1,000 public company, mutual fund
family and private equity firm clients domiciled in North America,
Europe and Asia.
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.
MOLECULAR INSIGHT: Receives Dec. 9 Extension of Waiver
------------------------------------------------------
Molecular Insight Pharmaceuticals, Inc. has received a further
extension of its waiver agreement with its Bond holders, allowing
debt restructuring discussions to continue.
Earlier this year, Molecular Insight executed the waiver agreement
and subsequent amendments with holders of the Company's
outstanding Senior Secured Bonds and the Bond Indenture trustee
and announced ongoing discussions with the Bond holders concerning
a restructuring of its outstanding debt. Under terms of the
extension announced today, the Bond holders and Bond Indenture
trustee agreed to extend the waiver of a default arising from the
inclusion of a going concern explanatory paragraph in the
independent auditor's report on the Company's financial statements
for the year ended December 31, 2009, any default arising from the
Company's failure to comply with the minimum liquidity
requirements set forth in the Bond Indenture, and other technical
defaults under the Bond Indenture. The term of the waiver is
extended until 11:59 PM Eastern Standard Time on December 9, 2010,
subject to earlier termination by the Bond holders upon certain
circumstances. During this waiver extension period, the Company
will continue to discuss with its Bond holders various proposals.
There are no assurances, however, that such discussions will be
successful.
The waiver continues to be subject to a number of terms and
conditions. In the event that the waiver expires or terminates
prior to the successful conclusion of the Company's negotiations
with its Bond holders regarding the restructuring of its
outstanding debt, the Company will be in default of its
obligations under the Indenture and the Bond holders may choose to
accelerate the debt obligations under the Indenture and demand
immediate repayment in full and seek to foreclose on the
collateral supporting such obligations. If the Company's debt
obligations are accelerated or are not restructured on acceptable
terms, it is likely the Company will be unable to repay such
obligations and may seek protection under the U.S. Bankruptcy Code
or similar relief.
About Molecular Insight
Molecular Insight Pharmaceuticals, Inc. (NASDAQ: MIPI)
-- http://www.molecularinsight.com/-- is a clinical-stage
biopharmaceutical company and pioneer in molecular medicine. The
Company is focused on the discovery and development of targeted
therapeutic and imaging radiopharmaceuticals for use in oncology.
Molecular Insight has five clinical-stage candidates in
development.
NATIONAL MEDICAL: Involuntary Chapter 11 Petitions Dismissed
------------------------------------------------------------
WestLaw reports that alleged creditors that had joined in filing
involuntary petitions, not only against limited liability
companies, but against the individual member who had guaranteed
the LLCs' purported debts to the petitioning creditors, before the
involuntary case against the member-guarantor was transferred to
the Southern District of Florida, had the requisite "full and fair
opportunity to litigate" whether their petition against the
member-guarantor should be dismissed by a Florida bankruptcy judge
on a judicial estoppel or other theory, as required for this
Florida bankruptcy judge's dismissal order to be entitled to
collateral estoppel effect on a motion to dismiss the petitions
against the LLCs. The petitioning creditors complained that
certain arguments in support of dismissal of the involuntary case
against the member-guarantor were raised late and that they were
caught off guard. However, the creditors readily admitted that
the Florida bankruptcy judge gave them equal and timely
opportunity to brief the issues raised at the hearing, and the
creditors failed to object to the procedure employed by the
Florida judge or to ask for additional time. In re National
Medical Imaging, LLC, --- B.R. ----, 2009 WL 5083601 (Bankr. E.D.
Pa.) (Fehling, J.).
The Honorable Richard E. Fehling held that (1) the petitioning
creditors had the requisite "full and fair opportunity to
litigate" whether their petition against the member-guarantor
should be dismissed by the Florida bankruptcy judge on judicial
estoppel or another theory, and (2) the requisite identity existed
between issues raised in both cases, notwithstanding any
difference between the doctrine of judicial estoppel, as applied
in the Third Circuit to require evidence of bad faith in asserting
inconsistent positions by the party to be estopped, and the
doctrine as applied in Eleventh Circuit. Accordingly, Judge
Fehling dismissed the involuntary petitions.
As reported in Troubled Company Reporter on Mar. 8, 2005, DVI
Receivables Trusts and other creditors of Philadelphia, Pa.-based
National Medical Imaging, L.L.C., and National Medical Imaging
Holding Company, L.L.C., filed involuntary chapter 11 petitions
(Bankr. E.D. Pa. Case Nos. 05-12714 and 05-12719) against the
Alleged Debtors on Mar. 3, 2005. The Creditors amended the
involuntary petitions three times: on Nov. 10, 2008; April 10,
2009; and on Aug. 26, 2009, following a contested hearing.
On Aug. 21, 2009, as reported at 414 B.R. 826, the Honorable A.
Jay Cristol dismissed an involuntary Chapter 7 petition (Bankr.
S.D. Fla. Case No. 09-13196) filed against Maury Rosenberg.
NILE THERAPEUTICS: Receives NASDAQ Notice, Will Request Hearing
---------------------------------------------------------------
Nile Therapeutics, Inc. disclosed that, as anticipated, on
November 30, 2010, the Company received a letter from the Listing
Qualifications Staff of The NASDAQ Stock Market notifying the
Company that, based on its failure to regain compliance with the
$1.00 minimum bid price requirement, as set forth in NASDAQ
Listing Rule 5550(a)(2), the Company's common stock would be
subject to delisting from The NASDAQ Capital Market unless the
Company requests a hearing before the NASDAQ Listing
Qualifications Panel.
The Company intends to request a hearing before the Panel, which
will stay any action with respect to the Staff Determination until
the Panel renders a decision subsequent to the hearing. There can
be no assurance that following the hearing the Panel will grant
the Company's request for continued listing on The NASDAQ Capital
Market.
The Staff Determination follows a notification from the Staff
dated June 1, 2010, which was disclosed by the Company on June 4,
2010, indicating that the minimum bid price of the Company's
common stock had been below $1.00 per share for 30 consecutive
business days and that the Company had 180 calendar days, or until
November 29, 2010, to regain compliance with the minimum bid price
requirement.
About Nile Therapeutics
Nile Therapeutics, Inc. is a clinical-stage biopharmaceutical
company that develops innovative products for the treatment of
cardiovascular disease and other areas of unmet medical needs.
Nile is initially focusing its efforts on developing its lead
compound, CD-NP, a novel rationally designed chimeric peptide in
clinical studies for the treatment of heart failure, and CU-NP, a
novel rationally designed natriuretic peptide.
NORD RESOURCES: W. Morrison Promoted to Chief Executive Officer
---------------------------------------------------------------
Nord Resources Corporation announced that, effective immediately,
Wayne M. Morrison is appointed Chief Executive Officer.
Mr. Morrison will continue to serve as the company's Vice-
President, Finance and Chief Financial Officer.
Nord also announced that John Cook, a director of the company,
will serve as Technical Advisor for Mining Operations for the
company.
Mr. Morrison succeeds Randy Davenport in the CEO role.
Mr. Davenport, who has accepted a senior position at a global
mining company, will provide consulting services to Nord through
the end of 2010.
"We understand Randy Davenport was presented with an exciting
opportunity he decided to accept", said Ronald A. Hirsch, Chairman
of Nord's Board. "We thank him for his years of service with Nord
and his accomplishments in helping to build a strong mining team
for our company."
"Our Board is confident that Wayne Morrison is the right choice to
assume the CEO role for Nord. For the past three years, Wayne has
worked closely with Randy and his predecessor as Nord brought the
Johnson Camp Mine back into production and he continues to lead
our financing activities, working with our external consultants,
FTI Consulting," Mr. Hirsch continued. Mr. Morrison is a seasoned
executive with more than 25 years experience in operations,
finance, and accounting.
"Wayne will be assisted by one of our directors, John Cook, who
brings more than 40 years experience in operations and management
of mining companies in assuming the consulting role of Technical
Advisor for Mining Operations," Mr. Hirsch said. Mr. Cook, who
has been a director of Nord since February 2006, holds a Bachelor
of Engineering (Mining), C. Eng UK, and P. Eng Ontario. He has
worked with junior and senior mining companies in North America
and internationally.
About Nord Resources
Based in Tuczon, Arizona, Nord Resources Corporation
(TSX:NRD/OTCBB:NRDS.OB) -- http://www.nordresources.com/-- is a
copper mining company whose primary asset is the Johnson Camp
Mine, located approximately 65 miles east of Tucson, Arizona.
Nord commenced mining new ore on February 1, 2009.
Nedbank, the Company's senior lender, has declined to extend the
forbearance agreement with respect to the scheduled principal and
interest payment in the approximate amount of $2,150,000 that was
due on March 31, 2010 under the Company's $25,000,000 secured
term-loan credit facility with Nedbank. Nedbank Capital has also
declined to extend the forbearance agreement regarding the
Company's failure to make the payment of $697,869 due on April 6,
2010 under the Copper Hedge Agreement between the parties. Both
forbearance agreements expired at midnight on May 13, 2010.
The Company is now in default of its obligations under the Credit
Agreement and the Copper Hedge Agreement with Nedbank.
On June 2, 2010, Nord Resources appointed FTI Consulting to advise
on refinancing structures and strategic alternatives.
The Company's balance sheet at June 30, 2010, showed
$71.34 million in total assets, $54.68 million in total
liabilities, and $16.65 million in stockholders' equity.
NOVELOS THERA: Reaches Exchange Deal With Preferred Stock Holders
-----------------------------------------------------------------
On November 30, 2010, Novelos Therapeutics Inc. entered into an
Exchange Agreement with each of the holders of its Series E
preferred stock and Series C preferred stock pursuant to which
each such holder exchanged all of the holder's shares of Series E
preferred stock or Series C preferred stock, as applicable, and
all rights, preferences and privileges associated therewith and
any rights of the holder to liquidated damages under agreements to
register its capital stock, for an aggregate of 340,935,801 shares
of common stock, representing 75.3% of the Company's common stock
outstanding effective immediately following the exchange. The
outstanding warrants to purchase the Company's common stock held
by the former holders of preferred stock were not affected by the
exchange. These outstanding warrants are exercisable for an
aggregate of 31,324,933 shares of common stock at prices ranging
from $0.105 to $1.25 per share and expire on dates ranging from
May 2, 2012 through December 31, 2015.
The Company said, "The Series E preferred stock and Series C
preferred stock were convertible by their terms at a conversion
price of $0.65 per share of common stock. The effective price per
share at which the common stock was issued in connection with the
exchange was approximately $0.08. The market price of our common
stock as of the last trading day immediately preceding the
exchange was $0.04.
"As a result of the exchange, all of the liquidation preference
applicable to the preferred stock, approximately $27,300,000 as of
November 30, 2010, has been eliminated. Furthermore, the Series E
preferred stock and Series C preferred stock accumulated dividends
at rates of 9% per annum and 20% per annum, respectively. Unpaid
dividends were added to the liquidation preference of the
preferred stock. Given our lack of funds to pay dividends on our
preferred stock, this additional accrual would have resulted in an
annual aggregate increase of liquidation preference equal to
approximately $2,327,000 had the preferred stock remained
outstanding.
"Finally, as a result of the exchange, the special voting rights
that the Series E preferred stock and Series C preferred stock had
previously held are no longer applicable, and the former holders
of Series E preferred stock have released any rights to require
the registration of shares of our common stock for resale under
the Securities Act," said the Company.
A full-text copy of the Exchange Agreement is available for free
at http://ResearchArchives.com/t/s?705c
About Novelos Therapeutics
Newton, Mass.-based Novelos Therapeutics, Inc. (OTC BB: NVLT)
-- http://www.novelos.com/-- is a biopharmaceutical company
developing oxidized glutathione-based compounds for the treatment
of cancer and hepatitis.
The Company's balance sheet at Sept. 30, 2010, showed
$3.49 million in total assets, $6.36 million in total current
liabilities, $375,000 in commitments and contingencies,
$13.77 million in redeemable preferred stock, and a stockholders'
deficit of $17.01 million. Stockholders' deficit was
$16.1 million at June 30, 2010.
As reported in the Troubled Company Reporter on April 8, 2010,
Stowe & Degon LLC, in Westborough, Mass., 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 continuing losses and stockholders' deficiency at
December 31, 2009.
NYC OFF-TRACK: Operations Extended Until December 7
---------------------------------------------------
New York City Off-Track Betting Corp. Chairman Larry Schwartz said
in a statement posted in OTB's Web side that the board of
directors voted in an emergency meeting to extend its operations
until midnight on Tuesday, December 7, pending action by the State
Senate. No further extensions will be granted.
"Closing NYC OTB is a complicated and costly prospect, with an
immediate cost of as much as $20 million to State taxpayers as
well as a fiscal impact on the Counties of Nassau and Saratoga and
the City of Yonkers. Closure would also mean the immediate loss
of jobs statewide and a substantial loss of revenue to the racing
industry and the State," Mr. Schwartz said.
"The Senate has two options on Tuesday: pass the reorganization
plan that passed the Assembly or pass an alternative agreed-upon
plan that has the support of both houses of the Legislature, the
Governor's Office, the creditors of NYC OTB and the racing
industry at large. Absent either of these actions, NYC OTB will
shutter its operations at midnight on Tuesday.
"It remains unclear that there are sufficient votes to pass the
reorganization plan that passed the Assembly and it will most
certainly require bipartisan support. As the Senators are well
aware, this plan is not a bailout. Not a single taxpayer dollar
is being requested. And when the reorganization plan is in place,
NYC OTB will be a profitable, revenue-generating entity for the
State of New York; thousands of jobs will be saved; and hundreds
of millions of taxpayer dollars conserved."
Bill Rochelle, the bankruptcy columnist for Bloomberg News,
reports that Democratic leaders in the state Senate haven't given
up on passing legislation proposed by the governor to form the
basis for a reorganization plan. The bill lacks Republican support
in the legislature's upper chamber. The bill passed in the state
Assembly even after defections from some Democrats.
Chapter 9 Plan
Early this month, the bankruptcy judge signed an order approving a
disclosure statement explaining the Chapter 9 municipal
reorganization plan for Off-Track Betting Corp. NYC OTB, however,
said it wouldn't solicit creditors' votes unless the legislation
proposed by outgoing New York Governor David Paterson passes.
NYC OTB has warned that unless a special session of the New York
legislature adopts enabling legislation, the Debtor would close
down starting December for lack of cash.
Republicans Asked to Cooperate on the Measure
Erik Engquist, writing for Crain's New York Business, reports that
on Wednesday, the city OTB board voted unanimously to close the
40-year-old state-owned bookmaking enterprise on Friday and lay
off its remaining 800 employees.
Crain's notes senators had convened Monday but declined to vote on
the measure, which was approved by the Assembly but which members
of the Senate suspected was not needed because OTB has cried wolf
more than once in the last year.
According to Crain's, Senate Democratic leader John Sampson said
in a statement he has asked the Republican conference to cooperate
on the measure, a sign that he might not have unanimous support
for it among the 32 Senate Democrats. The bill needs 32 votes to
pass.
Crain's notes the OTB plan isn't a cash bailout, but a new
business model that would be created through concessions by unions
and management to modernize the operation.
Crain's relates Gov. David Paterson had said OTB's closure would
likely mean the loss of hundreds or thousands of jobs in the
racing industry, which employs about 50,000 New Yorkers. Hundreds
of jobs have been shed in recent months as part of the planned
reorganizing. Mr. Paterson said a shutdown would also push $600
million in pension obligations to OTB employees back to the state,
nearly tripling the current budget deficit that the Legislature
failed to address in special session last week.
About NYC Off-Track Betting
New York City Off-Track Betting Corporation is a public benefit
corporation, which operates an off-track pari-mutuel betting
system on thoroughbred and harness horse races held at all 11 race
tracks located in New York State and certain race tracks located
outside of the State. Since NYC OTB's inception in 1971, it has
made payments of nearly $2 billion to the State horse racing
industry, more than $1.4 billion to New York City and nearly
$600 million to the State. In 2008 alone, NYC OTB made statutory
contributions in an aggregate amount of $128.6 million to the
State horse racing industry, the State, the City, and other local
municipalities. NYC OTB's operations are regulated by the State.
NYC OTB sought protection under Chapter 9 of the Bankruptcy
Code (Bankr. S.D.N.Y. Case No. 09-17121) on December 3, 2009. NYC
OTB is represented by Richard Levin, Esq., at Cravath, Swaine &
Moore LLP., in New York City, and Michael S. Fox, Esq., Herbert C.
Ross, Esq., David Y. Wolnerman, Esq., at Olshan Grundman Frome
Rosenzweig & Wolosky LLP in New York City.
At September 30, 2009, NYC OTB disclosed $18,468,147 in total
assets, $74,912,742 in total current liabilities, $6,982,887 in
long-term liabilities, and $201,020,000 in long-term post
employment benefits.
OMNICOMM SYSTEMS: Sells 250,000 Shares of Preferred Stock to CEO
----------------------------------------------------------------
On November 30, 2010 OmniComm Systems Inc. sold 250,000 shares of
its Series D Preferred Stock, which provides super-voting rights
in the amount of 100,000,000 votes, to Cornelis F. Wit, its chief
executive officer and a member of its board of directors in
exchange for a promissory note from the Company in the aggregate
amount of $1,000,000. The promissory note was issued on September
30, 2010 in exchange for a loan of personal funds made by Mr. Wit
to OmniComm and would have matured on December 31, 2011.
The Company said, "In connection with the sale of the Series D
Preferred Stock to Mr. Wit, on November 30, 2010, the effective
date, we amended our certificate of incorporation by filing a
certificate of designation that created a series of 250,000 shares
of Series D Preferred Stock pursuant to the authority given to our
board of directors under our certificate of incorporation which
authorizes the issuance of up to 10,000,000 shares of preferred
stock and authorizes our board of directors, by resolution or
resolutions, at any time and from time to time, to divide and
established any or all of the unissued shares of preferred stock,
not then allocated to any series into one or more series and to
fix and determine the designation of each such share, the number
of shares which shall constitute such series and certain
preferences, limitations and relative rights of the shares of each
series so established."
"Prior to the issuance of the shares of Series D Preferred Stock
to Mr. Wit he controlled the vote of approximately 4.3% of our
outstanding voting securities. In addition, Mr. Wit, owns the
following securities: vested options to purchase an aggregate of
2,125,000 shares of common stock at prices ranging from $0.20 to
$0.61 per share with expiration dates ranging from December 2010
to December 2014; warrants to purchase 22,925,000 shares of common
stock at exercise prices ranging from $0.25 to $.60 per share with
expiration dates ranging from February 2012 to December 2013;
$2,097,500 principal amount of notes; and $7,560,000 principal
amount of convertible notes and $1,100,000 principal amount of
secured convertible notes, which Notes and Convertibles Notes are
collectively convertible into 22,400,000 shares of common stock at
prices ranging from $.25 to $.50 per share with due dates ranging
from August 2010 to December 2013. As a result of Mr. Wit's
acquisition of the shares of Series D Preferred Stock, a change in
voting control of OmniComm took place and Mr. Wit now controls by
reason of his ownership of the Series D Preferred Stock
approximately 55.88% of our issued and outstanding voting
securities. There are no arrangements or understandings among
OmniComm and Mr. Wit with respect to the election of directors or
other matters, except as described in the certificate of
designation".
"The sale of the Series D Preferred Stock was exempt from
registration under the Securities Act of 1933 in reliance on an
exemption provided by Section 4(2) of that act. We did not pay
any commissions or finder's fees in connection with the sale to
Mr. Wit," said the Company.
A full-text copy of the certificate of designation is available
for free at http://ResearchArchives.com/t/s?7053
A full-text copy of the subscription agreement is available for
free at http://ResearchArchives.com/t/s?7055
About OmniComm Systems
Ft. Lauderdale, Fla.-based OmniComm Systems, Inc. (OTC: OMCM.OB)
-- http://www.OmniComm.com/-- provides customer-driven Internet
solutions to pharmaceutical, biotechnology, research and medical
device organizations that conduct life changing clinical trial
research.
OmniComm Systems, Inc.'s balance sheet at September 30, 2010,
showed total assets of $2,876,914, total liabilities of
$21,122,182, and a stockholders' deficit of $18,245,268.
Going Concern Doubt
Greenberg & Company LLC, in Springfield, 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 incurred losses
and has a net capital deficiency.
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
93.60 cents-on-the-dollar during the week ended December 3, 2010,
according to data compiled by Loan Pricing Corp. and reported in
The Wall Street Journal. This represents a drop of 0.43
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 201 widely quoted
syndicated loans with five or more bids in secondary trading for
the week ended Friday.
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.
PACTIV CORPORATION: Moody's Junks Ratings on Five Notes
-------------------------------------------------------
Moody's Investors Service withdrew the Baa2 senior unsecured
rating of Pactiv Corporation and concluded the review for
downgrade intiated on August 17, 2010, following the company's
announcement of a definitive merger agreement to be acquired by
Reynolds Group Holdings Limited. Pactiv's senior notes were
downgraded to Caa1 from Baa2 as they remain outstanding and will
be assumed by RGHL (B2, Negative).
The rating action reflects the results of Pactiv's tender offer
for its $250 million 6.4% notes due in 2018 and the status of the
tender offer for its $250 million 5.875% notes due in 2012.
Moody's took these rating actions:
-- Withdrew Pactiv's Baa2 senior unsecured rating
-- Downgraded $276.79 million of 7.950% notes due 12/15/2025 to
Caa1 (LGD 6,92%) from Baa2
-- Downgraded $300 million 8.125% bonds due 6/15/2017 to Caa1
(LGD 6,92%) from Baa2
-- Downgraded $200 million 8.375% notes due 4/15/2027 to Caa1
(LGD 6, 92%) from Baa2
-- Downgraded $250 million 5.875% notes due 7/15/2012
($249 million outstanding as of November 29, 2010) to Caa1
(LGD 6, 92%)
-- Downgraded $250 million 6.4% notes ($16 million outstanding,
as of November 16, 2010) due 1/15/2018 Caa1 (LGD6, 92%) from
Baa2
The rating outlook is revised to negative from under review for
downgrade.
Ratings Rationale
The actual financing of the acquisition is overall in line with
what Moody's expected on 9 September 2010 when it changed the
outlook on RGHL's B2 corporate family rating to negative from
stable and assigned provisional ratings for the acquisition debt
and indicated that Pactiv notes could be downgraded to Caa1.
The noteworthy exceptions are (i) that the actual amount of senior
secured incremental term loans increased to US$2,020 million (from
US$1,500 million expected previously) and the amount of senior
secured notes reduced to US$1,500 million (from US$2,000 million
expected previously), and (ii) that only US$235 million of notes
were repaid and canceled as result of Pactiv's tender offer for
its 2012 notes and 2018 notes so far (US$500 million expected
previously). While the tender period for the 2018 notes has been
closed (US$234 million tendered) the tender offer for the notes
due 2012 is still open. So far only approximately US$700,000 were
tendered compared to the US$250 million Moody's expected
previously. However, given the relative small size of the 2012
notes issues in relation to RGHL's total debt amount the final
outcome of the tender will have no material effect on the ratings.
RGHL funded the acquisition partially with (i) new senior secured
incremental term loans of US$2,020 million, (ii) US$1,500 million
senior secured notes and (iii) US$1,500 million senior unsecured
notes. Prior to closing, these funds had been placed into escrow
accounts. As the acquisition has closed Moody's changes the
provisional (P)Ba3 (LGD2 -- 28%) debt ratings for the senior
secured incremental term loans of US$2,020 million and the
US$1,500 million senior secured notes to Ba3 (LGD2 -- 28%). The
provisional (P)Caa1 (LGD5 -- 81%) debt ratings for the senior
notes was changed to Caa1 (LGD5 -- 77%).
As outlined in Moody's Credit Opinion for RGHL dated 15 September
2010 the negative rating outlook reflects the company's stretched
financial metrics based on a pro forma assessment of the Pactiv
acquisition and the related financing. The outlook could,
however, be stabilized if leverage returns to levels of 6x
debt/EBITDA. The rating could be upgraded if the group's
performance remains resilient, with solid profit margins that
allow for notable free cash flow generation, along with a
reduction of leverage to around 5x debt/EBITDA on a sustainable
basis. The rating could be downgraded if the group is unable to
generate positive free cash flows, if leverage cannot be reduced
to around 6x debt/EBITDA within the next 12-18 months, and in case
of further major debt-financed acquisitions. Furthermore, a
tightening of financial covenant headroom or a weakening of RGHL's
liquidity situation would put pressure on the rating.
Reynolds Group Holdings Limited is a leading global manufacturer
and supplier of food and beverage packaging and consumer storage
products. It manufactures aseptic packaging products for the food
and beverage industry, consumer packaging products (Reynolds
Consumer) and closures for the beverage, dairy and food segment
(CSI). Through the acquisition of Evergreen Packaging in May
2010, the group also got exposure to the fresh carton packaging
market as well as the uncoated freesheet and coated groundwood
paper market. Pro forma the Evergreen acquisition, the group
generated revenues of EUR3.9 billion, for the fiscal year December
2009.
Headquartered in Lake Forest, Illinois, Pactiv Corporation is a
producer of packaging products for the consumer, foodservice, and
food packaging markets. Revenue for the twelve months ended
September 31, 2010 was approximately US$3.5 billion.
Pro forma the Pactiv acquisition the combined group has close to
US$10 billion of revenues and approximately US$1.8 billion EBITDA
as adjusted by Moody's on an LTM basis as per June 2010. Close to
two thirds of revenues are generated in North America. The
remaining revenues are generated primarily in Europe and the
emerging markets of Asia and Latin America.
PALATIN TECHNOLOGIES: Gets Non-Compliance Letter From NYSE Amex
---------------------------------------------------------------
Palatin Technologies, Inc. received notice from NYSE Amex LLC,
advising Palatin that it is not in compliance with certain
conditions of the Exchange's continued listing standards under
Section 1003 of the Exchange's Company Guide.
In a letter to Palatin, the Exchange stated that Palatin was not
in compliance with Section 1003(a)(iii) of the Company Guide
because Palatin's stockholders' equity is less than the required
$6,000,000 and Palatin has losses from continuing operations and
net losses in its five most recent fiscal years, and not in
compliance with Section 1003(a)(iv) of the Company Guide because
Palatin has sustained losses which are so substantial in relation
to its overall operations or existing financial resources, or its
financial condition has become so impaired that it appears
questionable, in the opinion of the Exchange, as to whether
Palatin will be able to continue operations and/or meet its
obligations as they mature.
Palatin intends to submit a plan of compliance by December 27,
2010, advising the Exchange how it intends to regain compliance
with Section 1003(a)(iv) by February 28, 2011 and Section
1003(a)(iii) by May 26, 2011. If the Exchange accepts the plan,
Palatin may be able to continue its listing during the plan
period, subject to periodic review to determine if Palatin is
making progress consistent with the plan. If Palatin does not
submit a plan, or if the Exchange does not accept the plan, or if
Palatin does not regain compliance within the applicable
deadlines, or if Palatin does not make progress consistent with
the plan during the plan period, the Exchange may initiate
delisting procedures.
About Palatin Technologies
Palatin Technologies, Inc. is a biopharmaceutical company
dedicated to the development of peptide, peptide mimetic and small
molecule agonists with a focus on melanocortin and natriuretic
peptide receptor systems. Palatin's strategy is to develop
products and then form marketing collaborations with industry
leaders in order to maximize their commercial potential.
PALM HARBOR: Taps Brian Cejka as Chief Restructuring Officer
------------------------------------------------------------
Palm Harbor Homes, Inc., et al., ask for authorization from the
U.S. Bankruptcy Court for the District of Delaware to employ
Alvarez & Marsal North America, LLC, nunc pro tunc to the Petition
Date, to provide the Debtors a chief restructuring officer and
certain additional personnel. Brian E. Cejka at Alvarez & Marsal
will serve as CRO.
Mr. Cejka will, among other things:
a. provide a financial review of the Debtors;
b. assist in the identification of cost reduction and
operations improvement opportunities;
c. serve as the principal contact with the Debtors' creditors
with respect to the Debtors' financial and operational
matters; and
d. assist the Debtors and their counsel in the preparation of
motion, pleadings and other activities necessary to
implement a Chapter 11 filing, if required.
Alvarez & Marsal will be paid based on the rates of its
professionals:
Managing Directors $650-$850
Directors $450-$650
Analyst/Associates $250-$450
Brian E. Cejka, Alvarez and Marsal's managing director, assures
the Court that the firm is a "disinterested person" as that term
defined in Section 101(14) of the Bankruptcy Code.
Addison, Texas-based Palm Harbor Homes, Inc. --
http://www.palmharbor.com/-- manufactures and markets factory-
built homes. The Company markets nationwide through vertically
integrated operations, encompassing manufactured and modular
housing, financing and insurance.
Palm Harbor filed for Chapter 11 bankruptcy protection on
November 29, 2010 (Bankr. D. Del. Case No. 10-13850). It
disclosed $321,263,000 in total assets and $280,343,000 in total
debts.
Affiliates Palm Harbor Albemarle, LLC (Bankr. D. Del. Case No. 10-
13849), Palm Harbor Real Estate, LLC (Bankr. D. Del. Case No. 10-
13851), Palm Harbor GenPar, LLC (Bankr. D. Del. Case No. 10-
13852), Palm Harbor Manufacturing, LP (Bankr. D. Del. Case No. 10-
13853), and Nationwide Homes, Inc. (Bankr. D. Del. Case No. 10-
13854) filed separate Chapter 11 petitions.
Attorneys at Locke Lord Bissell & Liddell LLP and Christopher A.
Ward, Esq., at Polsinelli Shughart PC, represent the Debtors in
the Chapter 11 case. Raymond James And Associates, Inc., is the
Debtors' investment banker. BMC Group, Inc., is the Debtors'
claims agent.
PALM HARBOR: Wants to Hire Polsinelli Shughart as Co-Counsel
------------------------------------------------------------
Palm Harbor Homes, Inc., et al., ask for authorization from the
U.S. Bankruptcy Court for the District of Delaware to employ
Polsinelli Shughart PC as co-counsel, nunc pro tunc to the
Petition Date.
Polsinelli Shughart will, among other things:
a. negotiate, prepare, and pursue confirmation of a plan and
approval of a disclosure statement;
b. prepare motions, applications, answers, orders, reports,
and other legal papers in connection with the
administration of the Debtors' estates;
c. appear in Court and to protect the interests of the
Debtors before the Court; and
d. assist with any disposition of the Debtors' assets, by
sale or otherwise.
Polsinelli Shughart will be paid based on the rates of its
professionals:
Christopher A. Ward, Shareholder $425
Justin K. Edelson, Associate $255
Shanti M. Katona, Associate $255
Lindsey M. Suprum, Paralegal $185
Shareholders $250-$475
Associates & Senior counsel $175-$295
Paraprofessionals $75-$185
By separate application, the Debtors are seeking approval to
employ Locke Lord Bissell & Liddell LLP to serve as co-counsel in
the Debtors' bankruptcy cases.
Christopher A. Ward, Esq., Polsinelli Shughart's managing
shareholder, assures the Court
that the firm is a "disinterested person" as that term defined in
Section 101(14) of the Bankruptcy Code.
Addison, Texas-based Palm Harbor Homes, Inc. --
http://www.palmharbor.com/-- manufactures and markets factory-
built homes. The Company markets nationwide through vertically
integrated operations, encompassing manufactured and modular
housing, financing and insurance.
Palm Harbor filed for Chapter 11 bankruptcy protection on
November 29, 2010 (Bankr. D. Del. Case No. 10-13850). It
disclosed $321,263,000 in total assets and $280,343,000 in total
debts.
Affiliates Palm Harbor Albemarle, LLC (Bankr. D. Del. Case No. 10-
13849), Palm Harbor Real Estate, LLC (Bankr. D. Del. Case No. 10-
13851), Palm Harbor GenPar, LLC (Bankr. D. Del. Case No. 10-
13852), Palm Harbor Manufacturing, LP (Bankr. D. Del. Case No. 10-
13853), and Nationwide Homes, Inc. (Bankr. D. Del. Case No. 10-
13854) filed separate Chapter 11 petitions.
Brian Cejka at Alvarez & Marsal is the Debtors' chief
restructuring officer. Raymond James And Associates, Inc., is the
Debtors' investment banker. Alvarez & Marshal North America, LLC,
is the Debtors' financial advisor. BMC Group, Inc., is the
Debtors' claims agent.
PALM HARBOR: Wins Interim OK for $50-Mil. Bankruptcy Loan
---------------------------------------------------------
Palm Harbor Homes Inc. won interim court approval to use a
$50 million bankruptcy loan provided by Fleetwood Homes Inc. to
fund its Chapter 11 case, Dow Jones' Small Cap reports.
According to the report, Judge Christopher S. Sontchi of the U.S.
Bankruptcy Court in Wilmington, Del., signed off on the home
builder's financing pact, a big chunk of which is going to pay off
the $34 million the company owes a group of lenders led by Textron
Financial Corp.
"The debtors' businesses have an immediate need for the
financing," Sontchi said in his decision, noting that without the
funds Palm Harbor's bankruptcy estate would be "irreparably
harmed," the report notes.
Dow Jones' discloses that the Fleetwood loan, which can be raised
to $55 million, can also be used to pay the builder's employees
plus its key vendors and suppliers, but it requires to Palm Harbor
to get out of bankruptcy in a hurry.
According to Bill Rochelle, the bankruptcy columnist for Bloomberg
News, a hearing for final approval of financing is set for
Dec. 22.
About Palm Harbor
Addison, Texas-based Palm Harbor Homes, Inc. --
http://www.palmharbor.com/-- manufactures and markets factory-
built homes. The Company markets nationwide through vertically
integrated operations, encompassing manufactured and modular
housing, financing and insurance.
Palm Harbor filed for Chapter 11 bankruptcy protection on
November 29, 2010 (Bankr. D. Del. Case No. 10-13850). It
disclosed $321,263,000 in total assets and $280,343,000 in total
debts.
Affiliates Palm Harbor Albemarle, LLC (Bankr. D. Del. Case No. 10-
13849), Palm Harbor Real Estate, LLC (Bankr. D. Del. Case No. 10-
13851), Palm Harbor GenPar, LLC (Bankr. D. Del. Case No. 10-
13852), Palm Harbor Manufacturing, LP (Bankr. D. Del. Case No. 10-
13853), and Nationwide Homes, Inc. (Bankr. D. Del. Case No. 10-
13854) filed separate Chapter 11 petitions.
Attorneys at Locke Lord Bissell & Liddell LLP and Christopher A.
Ward, Esq., at Polsinelli Shughart PC, represent the Debtors in
the Chapter 11 case. Brian Cejka at Alvarez & Marsal is the
Debtors' chief restructuring officer. Raymond James And
Associates, Inc., is the Debtors' investment banker. Alvarez &
Marshal North America, LLC, is the Debtors' financial advisor.
BMC Group, Inc., is the Debtors' claims agent.
PATIENT SAFETY: Signs Pennsylvania Sub-Lease With Centrak Inc.
--------------------------------------------------------------
Patient Safety Technologies Inc. entered into a sub-sublease with
Centrak, Inc., a Delaware corporation, dated as of November 18,
2010, effective November 22, 2010. The space is comprised of
approximately 5,670 square feet of office space located at 5
Caufield Place, Newtown, Pennsylvania and was previously subleased
by the Company from Reliance Life Sciences, Inc.
The term of the Sub-Sublease commenced on November 22, 2010, the
date on which we and the Sub-Subtenant received the written
consent of both Reliance and the Master Landlord to the Sub-
Sublease. The Sub-Sublease term expires on April 30, 2013, unless
earlier terminated in accordance with the Sub-Sublease. The base
rent due under the Sub-Sublease is (i) $8,225.00 per month for
each month during months one (1) through twelve (12), (ii) $8,697
per month for months thirteen (13) through twenty four (24), and
(iii) $9,170.00 per month for months 25 through the expiration of
the Sub-Sublease. Base rent includes landlord operating expenses,
taxes and utilities that a reasonable tenant making comparable use
of the subleased premises to that being made by the Sub-Subtenant
would typically incur. The Sub-Subtenant will be responsible for
any additional utility costs that are not our responsibility.
A full-text copy of the Sub-Lease Agreement is available for free
at http://ResearchArchives.com/t/s?7065
About Patient Safety Technologies
Patient Safety Technologies, Inc. (OTC: PSTX) --
http://www.surgicountmedical.com/-- through its wholly owned
operating subsidiary SurgiCount Medical, Inc., provides the
Safety-Sponge(TM) System, a system designed to improve the
standard of patient care and reduce health care costs by
preventing the occurrence of surgical sponges and other retained
foreign objects from being left inside patients after surgery.
RFOs are among one of the most common surgical errors.
The Company's balance sheet at Sept. 30, 2010, showed $12.02
million in total assets, $10.10 million in total liabilities, and
a stockholders' equity of $1.92 million.
* * *
In its March 31, 2010 report, Squar, Milner, Peterson, Miranda &
Williamson, LLP, in San Diego, California, noted that the
Company's significant recurring net losses through December 31,
2009, and significant working capital deficit as of December 31,
2009, raise substantial doubt about the Company's ability to
continue as a going concern.
PATRICK HACKETT: Balks at US Trustee's Plea for Ch. 7 Conversion
----------------------------------------------------------------
Brian Kelly at the WaterTownDailyTimes.com reports that David P.
Antonucci, attorney for Patrick Hackett Hardware Co., asked a
federal bankruptcy court to deny the request to convert the
Company's Chapter 11 case to Chapter 7 liquidation filed by the
U.S. Trustee.
The Times relates Mr. Antonucci said the Company is not insolvent
and has "adequate resources to fund a plan of reorganization
between its present cash assets inventory and equity in real
property."
A hearing is set for Dec. 9, 2010, to consider the request for
conversion.
About Patrick Hackett
Patrick Hackett Hardware Company began in 1830 as a hardware store
in upstate New York. Hacketts now operates full-service
department stores and a specialty store, selling a full line of
clothes, consumer electronics, cell phones, shoes, housewares,
hardware and others.
Patrick Hackett filed for Chapter 11 on November 10, 2009 (Bankr.
N.D. N.Y Case No. 09-63135). The Debtor estimated less than
$10 million in total assets in its Chapter 11 petition.
Hackett's Stores, Inc., is the parent company of Patrick Hackett.
Hackett's Stores (Pink Sheets:HCKI) is a holding of Seaway Valley
Capital Corporation (Pink Sheets:SEVA). Hackett's Stores is not
nor has ever been in bankruptcy or bankruptcy protection.
PAYMENT DATA: Meta to Terminate Prepaid Card Programs
-----------------------------------------------------
Meta Payment Systems(R) sent a letter to Payment Data Systems,
Inc., on November 17, 2010, informing the Company that it was
terminating its participation in the Company's prepaid card
programs effective May 11, 2011, under the terms of the Company's
Card Program Management Agreement. The letter also served notice
to the Company that the Card Program Management Agreement would
not be renewed effective December 31, 2012.
As the Company disclosed in its annual report on Form 10-K for the
fiscal year ended December 31, 2009, the issuing bank for the
Company's debit card programs is MetaBank, through its Meta
Payment Systems(R) division with which the Company has a third
party relationship agreement.
On October 12, 2010, Meta Financial Group, Inc. filed a Form 8-K
disclosing that its wholly owned subsidiary, MetaBank, is
required, among other things, to obtain prior written approval
from the Office of Thrift Supervision before entering into any new
third party relationship agreements concerning any credit product,
deposit product, or automatic teller machine pursuant to OTS
supervisory directives. MetaBank sought such approvals for
programs conducted through its Meta Payment Systems(R) division,
and was informed on October 14, 2010 that OTS was not prepared at
this time to allow MetaBank to enter into any such new third party
relationship agreements.
This means that MetaBank will not, without obtaining the prior
written approval of OTS, be able to amend its existing agreements
or enter into new agreements with distributors that are also
parties to a third party agency relationship with MetaBank. This
would include any distributors that have the capability to issue
cards and accept cash deposits on those cards. According to the
OTS, written permission to enter into all these types of programs
must await the result of the OTS' review of MetaBank's operations,
which review generally is not expected to occur for up to several
months. Nonetheless, as currently disclosed, MetaBank expects to
be able to continue to service its existing third party
relationship agreements consistent with their terms and the OTS
Directives, but can offer no assurance as to when or to what
extent the OTS will allow MetaBank to resume adding new third
party relationships.
The Company will need to obtain another bank sponsor for its
prepaid card programs in order to continue providing such
services. Under the terms of the Company's existing Card Program
Management Agreement, Meta Payment Systems will take commercially
reasonable steps to permit the relevant Bank Identification
Numbers for the Company's existing prepaid card programs to be
transferred to another issuing financial institution and will not
assess a fee to the Company for such a transfer. The Company will
be responsible for all transfer fees, if any, that are assessed by
another issuing financial institution that agrees to sponsor our
debit card programs.
The Company has already begun the process of obtaining another
bank sponsor and expect to have another management agreement in
place prior to May 11, 2011.
If for any reason the Company is unable to obtain another bank
sponsor to service its prepaid card programs at similar costs
under a third party relationship agreement with the Company, the
Company anticipates that this could have a material adverse effect
on its results of operations and financial condition.
About Payment Data Systems
San Antonio, Tex.-based Payment Data Systems, Inc. provides
integrated electronic payment processing services to merchants and
businesses, including credit and debit card-based processing
services and transaction processing via the Automated
Clearinghouse Network. The Company also operates an online
payment processing service for consumers under the domain name
http://www.billx.com/through which consumers can pay anyone.
The Company's balance sheet at Sept. 30, 2010, showed $853,911 in
total assets, $1.38 million in total current liabilities, and a
stockholder's deficit of $526,674.
As reported in the Troubled Company Reporter on April 21, 2010,
Akin, Doherty, Klein & Feuge, P.C., in San Antonio, Tex.,
expressed substantial doubt about the Company's ability to
continue as a going concern, following its 2009 results. The
independent auditors noted that the Company has incurred
substantial losses since inception, which has led to a deficit in
working capital.
PILGRIM'S PRIDE: S&P Assigns 'BB-' Corporate Credit Rating
----------------------------------------------------------
Standard & Poor's Ratings Services said that it assigned its 'BB-'
corporate credit rating to Greely, Colorado-based Pilgrim's Pride
Corp. At the same time, Standard & Poor's assigned a 'BB-' issue-
level rating (the same as the corporate credit rating) to
Pilgrim's Pride's proposed $350 million senior unsecured notes
maturing 2018 and assigned a recovery rating of 4, indicating
S&P's expectation for average (30% to 50%) recovery in the event
of a payment default. The outlook is stable.
S&P expects debt proceeds from the senior unsecured notes issue to
repay Term Loan A commitments totaling about $337 million and
other fees and expenses. Pilgrim's Pride had about $1.2 billion
of reported debt outstanding as of Sept. 26, 2010.
"The corporate credit rating on Pilgrim's Pride Corp. is based on
an intermediate or hybrid approach that assesses the degree to
which Pilgrim's Pride is a stand-alone investment or an integrated
business of its majority owner, JBS USA Holdings Inc.," said
Standard & Poor's credit analyst Christopher Johnson. JBS USA
Holdings, in turn, is owned by JBS S.A. (BB/Stable/--). S&P
believes Pilgrim's Pride is a strategically important investment
for JBS, and therefore have incorporated some implicit support
from JBS in Pilgrim's Pride's corporate credit rating. These
conclusions are based on JBS USA's meaningful $842 million equity
investment in Pilgrim's Pride representing a 67% ownership stake,
the similar industry characteristics shared between Pilgrim's
Pride's poultry business and JBS' beef and pork businesses, as
well as measures already taken to integrate the two companies
(including head office consolidation, migration to the same
information technology platform, and other administrative shared
services agreements).
Pilgrim's Pride's corporate credit rating on a stand-alone basis
reflects S&P's opinion that the company has a weak business
profile and an aggressive financial profile. Pilgrim's business
risk profile reflects its relatively short operating track-record
following its emergence from Chapter 11 bankruptcy in December
2009 and S&P's expectations that the company will be faced with a
period of higher feed costs in fiscal 2011. The inherent
volatility of the commodity-based U.S. chicken industry, and
additional factors beyond the company's control, including
weather, poultry supply and demand imbalances, and disease are
additional risks reflected in the company's business profile.
Still, the company realized meaningful cost reductions during its
bankruptcy reorganization, including closing or idling several
plants, and S&P believes future cost reductions and additional
operating synergies over the next year will help partially offset
the margin contraction the company may experience from higher feed
costs.
The stable outlook reflects S&P's opinion that the company will
maintain credit measures at or better than medians for the 'BB'
rating category despite the likelihood that margins may be
pressured by higher feed costs. S&P would consider a lower rating
if adjusted debt to EBITDA were to approach 5x. S&P believes this
could occur if the company faces significant margin deterioration
of more than 300 basis points from a combination of higher feed
costs and lower chicken prices from poultry supply and demand
imbalances. Although not likely over the next year given the
company's recent emergence from bankruptcy, S&P would consider a
positive outlook or higher rating if the company were able to
sustain debt leverage of less than 2.5x.
PRIVATE EQUITY MANAGEMENT: Claims Due By Jan. 18, 2011
------------------------------------------------------
The United States District Court for the Central District of
California has entered an order establishing Jan. 18, 2011, as the
deadline for investors and creditors to file proofs of claim
against Private Equity Management Group, Inc., Private Equity
Management Group, LLC, or any asset, subsidiary, affiliate or
other entity under PEMGroup's control.
Robert P. Mosler serves as the Federal Receiver in Case No. 09-cv-
2901 (C.D. Calif.), and projects that he'll have assets to
distribute to claimants.
Mr. Mosler can be reached at:
Robert P. Mosler
3151 Airway Avenue, Suite A-1
Costa Mesa, CA 92626
and he is represented in the Federal Receivership Proceeding by:
Nicolas Morgan, Esq.
Nick S. Pujji, Esq.
DLA PIPER
1999 Avenue of the Stars, Suite 400
Los Angeles, CA 90067-6023
Telephone: 310-595-3000
E-mail: nicolas.morgan@dlapiper.com
nick.pujji@dlapiper.com
QUALITY BREEZE: Case Summary & 20 Largest Unsecured Creditors
-------------------------------------------------------------
Debtor: Quality Breeze Air Conditioning, Inc.
15420 SW 136 St Bay 56
Miami, FL 33196
Bankruptcy Case No.: 10-46904
Chapter 11 Petition Date: December 1, 2010
Court: United States Bankruptcy Court
Southern District of Florida (Miami)
Judge: Laurel M. Isicoff
Debtor's Counsel: Jacqueline Calderin, Esq.
EHRENSTEIN CHARBONNEAU CALDERIN
501 Brickell Key Drive #300
Miami, FL 33131
Tel: (305) 722-2002
Fax: (305) 722-2001
E-mail: jc@ecccounsel.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
A list of the Company's 20 largest unsecured creditors
filed together with the petition is available for free
at http://bankrupt.com/misc/flsb10-46904.pdf
The petition was signed by Jesus M. Mayoral, director.
QUVIS INC: Bids for Debtor's Assets Due By Dec. 20, 2010
--------------------------------------------------------
QuVIS, Inc., is accepting bids for the purchase of its assets and
an auction to flush out the highest and best bid will be held at
10:00 a.m., prevailing Central Time, on Dec. 28, 2010. The
bidding and auction process will be governed by uniform procedures
described in a Second Amended Notice of Proposed Bid Procedures
(Doc. 443) filed in the Debtor's Chapter 11 proceeding.
Additional information is available from:
James T. Donelan
SEACOAST CAPITAL
55 Ferncroft Road, Suite 110
Danvers, MA 01923
Telephone: 978-750-1308
E-mail: jdonelan@seacoastcapital.com
Seacoast Capital Partners, II, L.P., a secured noteholder owed
about $5.3 million by QuVis, sought (Doc. 354) and obtained (Doc.
426) relief from the automatic stay to foreclose its security
interest in its collateral by taking possession of and conducting
an Article 9 non-judicial commercial sale of the debtor's assets,
exclusive of all factored accounts receivable, in October 2010,
over the objection of the Debtor and its Unsecured Creditors
Committee.
QuVIS, Inc., located in Topeka, Kan., sells software and hardware
that compresses and processes video data for various digital video
applications in the medical, entertainment, and military
industries. Three of QuVIS' creditors filed an involuntary
Chapter 11 petition (Bankr. D. Kan. Case No. 09-10706) against the
company on March 20, 2009. An order for relief (Doc. 16) was
entered on May 18, 2009, by consent. The Debtor filed a Chapter
11 plan in November 2009. The Court held the disclosure statement
inadequate and granted the debtor additional time to file an
amended plan. None was forthcoming and the debtor advises that no
further plan will be forthcoming because it lacks the resources to
resolve disputes with its Noteholders. The Debtor's Schedules of
Assets and Liabilities suggest the company's assets are worth
$1.4 million; other papers filed with the Court indicate that 2008
sales were about $3 million.
RAFAELLA APPAREL: Says it Has Enough Near-Term Liquidity
--------------------------------------------------------
Rafaella Apparel Group Inc. Chief Financial Officer Lance Arneson
said that the company has enough near-term liquidity to meet its
financial obligations and keep operating despite the more
stringent conditions that will apply to its credit lines from mid-
December, Dow Jones' Small Cap reports. "We believe that we will
have ample cash on hand and sufficient liquidity to fund our
operations, even with the change that will take place to our HSBC
[Bank USA] credit facility effective Dec. 16," Arneson said in a
statement, the report notes.
As reported in the Troubled Company Reporter on December 2, 2010,
Dow Jones' Small Cap said that Rafaella Apparel Group Inc. faces a
few crucial weeks ahead as looming debt maturities and tightening
liquidity may hurt its ability to fund operations beyond mid-
December. Unless it can secure new financing lines, it may also
miss payments on its bonds maturing in June 2011, the Company and
analysts said, according to the report. The New York-based
designer and wholesaler of women's clothing, which is owned by
private equity firm Cerberus Capital Management, faces more
stringent conditions to access credit lines that provide working
capital starting Dec. 16, which could impair its operations, it
said in a Securities and Exchange Commission filing on Nov. 15,
the report noted.
Mr. Arneson, Dow Jones' relates, said that the company's $10.7
million in cash and cash equivalents as of Sept. 30, and a maximum
availability for letters of credit of $8.1 million as of the end
of September, which includes $4 million of cash collateral, are
sufficient for Rafaella "to meet our obligations and to continue
to fund our business." Rafaella's HSBC credit facility also
provides for revolving direct debt advances of up to $5 million on
or after Dec. 16, he added, the report notes.
About Rafaella Apparel Group
New York-based Rafaella Apparel Group, Inc., is a wholesaler,
designer, sourcer, marketer and distributor of a full line of
women's career and casual sportswear separates.
The Company's balance sheet at September 30, 2010, showed
$82.9 million in total assets, $89.3 million in total liabilities,
$61.1 million in redeemable convertible preferred stock, and a
stockholders' deficit of $67.5 million.
As reported in the Troubled Company Reporter on October 18, 2010,
PricewaterhouseCoopers LLP expressed substantial doubt against
the Company's ability as a going concern, following the Company's
results for the fiscal year ended June 30, 2010. The independent
auditors noted that the Company's senior secured notes mature in
June 2011 and the Company does not expect its forecasted cash and
credit availability to be sufficient to meet its debt repayment
obligations under the senior secured notes.
RAMREDDY INC: Closed Gas Station's Chapter 11 Case Converted
------------------------------------------------------------
WestLaw reports that "cause" existed for dismissal or conversion
of a Chapter 11 case filed by a Petroleum Marketing Practices Act
franchisee whose only source of income was from operation of its
gasoline service station, and which had ceased to sell any
gasoline for a period in excess of seven months, based on the
debtor's failure to maintain any appropriate insurance and on the
complete lack of evidence that, even assuming that its franchise
agreement was still assumable, the debtor had the financial
wherewithal to cure its substantial monetary defaults thereunder,
in addition to paying its more than $500,000 in other, generally
unsecured debt. While the debtor presented extensive argument on
the continued assumability of franchise agreement even after the
franchisor had purported to terminate it prepetition, it presented
no evidence that it had taken any concrete steps to obtain
financing to fund its reorganization, did not present even a
general outline of any reorganization strategy, and offered no
evidence in support of the feasibility of any reorganization plan
that it might be contemplating. In re Ramreddy, Inc., --- B.R. --
--, 2009 WL 3763988, 52 Bankr.Ct.Dec. 108 (Bankr. E.D. Pa.)
(Frank, J.).
The Honorable Eric L. Frank directed that the Debtor's case be
converted to a Chapter 7 liquidation proceeding and granted Getty
Petroleum Marketing, Inc., relief from the automatic stay.
Ramreddy, Inc., operating a LUKOIL gas station in Kulpsville, Pa.,
sought chapter 11 protection (Bankr. E.D. Pa. Case No. 09-15283)
on July 20, 2009. The Debtor is represented by Robert J.
Murtaugh, Esq. -- rmurtaugh@chartwelllaw.com -- and Ron L.
Woodman, Esq. -- rwoodman@chartwelllaw.com -- at The Chartwell Law
Offices, LLP. in Eagleville, Pa. A copy of the Debtor's Chapter
11 petition is available at http://bankrupt.com/misc/paeb09-
15283.pdf at no charge. In its Schedules of Assets & Liabilities,
the Debtor disclosed less than $100,000 in assets and more than
$500,000 of debts.
RASER TECHNOLOGIES: Enters Into $2.5-Mil APA With Via Automotive
----------------------------------------------------------------
Raser Technologies, Inc. entered into an Asset Purchase Agreement
and Shareholders' Agreement with Via Automotive pursuant to which
Via Automotive purchased certain of the Company's Transportation
and Industrial Business segment assets for $2.5 million in cash
and the issuance to the Company of approximately 39% of the common
shares of Via Automotive, and the Buyer assumed certain
liabilities related to the Transportation and Industrial Segment
of approximately $0.7 million.
On November 2, 2010, the Company entered into an Investor Letter
with a private investor for the purpose of forming and
capitalizing a new and independent electric vehicle company Via
Automotive, Inc., a Delaware corporation. Additionally, the
Agreements also provide that the Investor Group will capitalize
Via Automotive with an additional $2.0 million.
The Company said that in addition to the foregoing $4.5 million
aggregate investment by the Investor Group, for which the Investor
Group shall be issued 61% of the common shares of Via Automotive.
Via Automotive will require additional equity investment of not
less than $10 million. In addition to the foregoing
consideration, the Buyer is obligated to close on not less than
$10 million of additional equity or equity-linked securities in
the Buyer to fund the Additional Initial Capital. Such Equity or
equity-linked securities shall dilute only the 61% of the common
equity initially issued to the Investor Group and shall not dilute
the approximate 39% of the common equity initially issued to the
Company.
The Business Segment has historically been focused on improving
the efficiency of electric motors, generators and power electronic
drives used in electric and hybrid electric vehicle propulsion
systems. The Business Segment contained historical based costs of
accounts receivable from General Motors, Inc. totaling $250,000;
certain short-term deposits and other assets totaling $8,300;
certain net fixed assets totaling $129,600; net intangible assets
totaling $284,000; and accounts payable and accrued liabilities
totaling $1,003,400 that were transferred to the Buyer.
The Shareholders' Agreement provides that a supermajority vote of
the directors will be required in certain circumstances.
Raser's board of directors received a satisfactory fairness
opinion for the sale of the Transportation and Industrial assets
to the Buyer.
In connection with the transaction, Kraig T. Higginson, the
Company's executive chairman of the Board of Directors, will
resign his executive management position before the end of 2010
and will no longer be an employee of the Company, but he will
continue to be a director and continue to serve as Chairman of the
Board of Directors.
About Raser Technologies
Provo, Utah-based Raser Technologies, Inc. (NYSE: RZ)
-- http://www.rasertech.com/-- is an environmental energy
technology company focused on geothermal power development and
technology licensing. Raser's Power Systems segment develops
clean, renewable geothermal electric power plants with one
operating plant in southern Utah and eight active and early stage
projects in four western United States: Utah, New Mexico, Nevada
and Oregon, as well as a concession for 100,000 acres in
Indonesia. Raser's Transportation and Industrial segment focuses
on extended-range plug-in-hybrid vehicle solutions and using
Raser's award-winning Symetron(TM) technology to improve the
torque density and efficiency of the electric motors and drive
systems used in electric and hybrid-electric vehicle powertrains
and industrial applications.
* * *
Hein & Associates LLP, in Denver, Colo., expressed substantial
doubt about the Company's ability to continue as a going concern,
following its 2009 results. The independent auditors noted that
the Company has suffered recurring losses, has used significant
cash for operating activities since inception, has significant
purchase commitments in 2010 and has a lack of sufficient working
capital.
Raser Technologies did not make the $2.2 million semi-annual
interest payment due October 1, 2010, on its 8% Convertible Senior
Notes Due 2013.
The Company satisfied the semi-annual interest payment obligation
after receiving $1.10 million from the Thermo No. 1 plant escrow
funds and $1.15 million from a loan with Evergreen Clean Energy,
LLC, late in October 2010.
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 92.70 cents-on-the-
dollar during the week ended Friday, December 3, 2010, according
to data compiled by Loan Pricing Corp. and reported in The Wall
Street Journal. This represents an increase of 0.45 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 201 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.
RENAISSANT LAFAYETTE: Interforum Wants Chapter 11 Case Dismissed
----------------------------------------------------------------
Tom Daykin at the Journal Sentinel reports that Interforum
Holdings Inc. and Interforum Holdings-Lafayette LLC, two groups
led by Illinois-based investor Alex Zdanov, asked a federal
bankruptcy judge to dismiss the Chapter 11 case of Renaissant
Lafayette LLC because the Company was not authorized to file for
bankruptcy protection.
Journal Sentinel, citing court documents, relates Renaissant
Development led by Chicagoan Warren Barr owned 50% of Renaissant
Lafayette, which owns Park Lafayette, a 280-unit project with twin
20-story towers at N. Prospect Ave. and E. Lafayette Place. The
Interforum groups owns the remaining percent.
Renaissant Lafayette claimed that Interforum Holdings Lafayette-
LLC sold its 37.5% interest back to Renaissant in February 2009
for $500,000, and has filed a copy of the signed agreement with
the bankruptcy court. The Interforum groups denied they sold that
interest in the project, and say the agreement filed in court
documents is "null and void," according to the report.
According to the report, if the Chapter 11 filing is dismissed,
the upcoming sale of the condominium complex would be delayed.
The Interforum groups hope to use that delay to extract an
unwarranted cash settlement by making an unsupportable claim,
Journal Sentinel quotes a person with knowledge of the matter.
About Renaissant Lafayette
Oak Brook, Illinois-based Renaissant Lafayette LLC is the owner of
a 280-unit luxury condominium development in Milwaukee named Park
Lafayette. The project is at the intersection of North Prospect
Avenue and Lafayette Place in Milwaukee. So far, 39 units were
sold.
The Company filed for Chapter 11 protection on December 23, 2009
(Bankr. E.D. Wis. Case No. 09-38166). The Company estimated its
assets at $50 million to $100 million and debts at $100 million to
$500 million.
REYNOLDS GROUP: Moody's Ups Rating on Bank Credit Facility to Ba3
-----------------------------------------------------------------
Moody's Investors Service has concluded the review of certain debt
ratings of Reynolds Group Holdings Limited and its subsidiaries
and changed provisional ratings on recent debt issues to
definitive ratings.
Ratings Rationale
The rating action reflects the closing of the Pactiv acquisition
by RGHL as well as the results of Pactiv's tender offer for its
US$250 million 6.4% notes due in 2018 and the status of the tender
offer for Pactiv's US$250 million 5.875% notes due in 2012.
The actual financing of the acquisition is overall in line with
what Moody's expected on 9 September 2010 when it changed the
outlook on RGHL's B2 corporate family rating to negative from
stable and assigned provisional ratings for the acquisition debt.
The noteworthy exceptions are (i) that the actual amount of senior
secured incremental term loans increased to US$2,020 million (from
US$1,500 million expected previously) and the amount of senior
secured notes reduced to US$1,500 million (from US$2,000 million
expected previously), and (ii) that only US$235 million of notes
were repaid and canceled as result of Pactiv's tender offer for
its 2012 notes and 2018 notes so far (US$500 million expected
previously). While the tender period for the 2018 notes has been
closed (US$234 million tendered) the tender offer for the notes
due 2012 is still open. So far only approximately US$700,000 were
tendered compared to the US$250 million Moody's expected
previously. However, given the relative small size of the 2012
notes issue in relation to RGHL's total debt amount the final
outcome of the tender offer will have no material effect on the
ratings.
RGHL funded the acquisition partially with (i) new senior secured
incremental term loans of US$2,020 million, (ii) US$1,500 million
senior secured notes and (iii) US$1,500 million senior unsecured
notes. Prior to closing, these funds had been placed into escrow
accounts. As the acquisition has closed Moody's changes the
provisional (P)Ba3 (LGD2 -- 28%) debt ratings for the senior
secured incremental term loans of US$2,020 million and the
US$1,500 million senior secured notes to Ba3 (LGD2 -- 28%). The
provisional (P)Caa1 (LGD5 -- 81%) debt ratings for the senior
notes was changed to Caa1 (LGD5 -- 77%).
At the same time Moody's concluded the rating review for the
senior secured debt of Reynolds Group Holdings Limited and its
subsidiaries that had been in place prior to the Pactiv
acquisition. The rating review concluded with an upgrade to Ba3
(LGD2 -- 28%) from previously B1 (LGD3 -- 32%) reflecting the
increase in the relative weight of unsecured indebtedness in the
capital structure as a result of the Pactiv transaction. All
ratings are in line with Moody's Loss-Given-Default Methodology.
As outlined in Moody's Credit Opinion dated 15 September 2010 the
negative rating outlook reflects the company's stretched financial
metrics based on a pro forma assessment of the Pactiv acquisition
and the related financing. The outlook could, however, be
stabilized if leverage returns to levels of 6x debt/EBITDA. The
rating could be upgraded if the group's performance remains
resilient, with solid profit margins that allow for notable free
cash flow generation, along with a reduction of leverage to around
5x debt/EBITDA on a sustainable basis. The rating could be
downgraded if the group is unable to generate positive free cash
flows, if leverage cannot be reduced to around 6x debt/EBITDA
within the next 12-18 months, and in case of further major debt-
financed acquisitions. Furthermore, a tightening of financial
covenant headroom or a weakening of RGHL's liquidity situation
would put pressure on the rating.
Downgrades:
Issuer: Beverage Packaging Holdings (Lux) II S.A.
-- Senior Subordinated Regular Bond/Debenture, Downgraded to
LGD6, 96% from LGD6, 94%
Upgrades:
Issuer: Beverage Packaging Holdings (Lux) II S.A.
-- Senior Unsecured Regular Bond/Debenture, Upgraded to LGD5,
77% from LGD5, 82%
Issuer: Reynolds Group Holdings Inc.
-- Senior Secured Bank Credit Facility, Upgraded to a range of
Ba3, LGD2, 28% from a range of B1, LGD3, 32%
Issuer: Reynolds Group Issuer Inc.
-- Senior Secured Regular Bond/Debenture, Upgraded to a range of
Ba3, LGD2, 28% from a range of B1, LGD3, 32%
-- Senior Unsecured Regular Bond/Debenture, Upgraded to LGD5,
77% from a range of LGD5, 82% to LGD5, 81%
Assignments:
Issuer: Reynolds Group Holdings Inc.
-- Senior Secured Bank Credit Facility, Assigned Ba3
Issuer: Reynolds Group Issuer Inc.
-- Senior Secured Regular Bond/Debenture, Assigned Ba3
-- Senior Unsecured Regular Bond/Debenture, Assigned Caa1
Reynolds Group Holdings Limited is a leading global manufacturer
and supplier of food and beverage packaging and consumer storage
products. It manufactures aseptic packaging products for the food
and beverage industry, consumer packaging products (Reynolds
Consumer) and closures for the beverage, dairy and food segment.
Through the acquisition of Evergreen Packaging in May 2010, the
group also got exposure to the fresh carton packaging market as
well as the uncoated freesheet and coated groundwood paper market.
Pro forma the Evergreen acquisition, the group generated revenues
of EUR3.9 billion, for the fiscal year December 2009.
Headquartered in Lake Forest, Illinois, Pactiv Corporation is a
producer of packaging products for the consumer, foodservice, and
food packaging markets. Revenue for the twelve months ended
September 31, 2010 was approximately US$3.5 billion.
Pro forma the Pactiv acquisition the combined group has close to
US$10 billion of revenues and approximately US$1.8 billion EBITDA
as adjusted by Moody's on an LTM basis as per June 2010. Close to
two thirds of revenues are generated in North America. The
remaining revenues are generated primarily in Europe and the
emerging markets of Asia and Latin America.
REYNOLDS GROUP: S&P Affirms 'B+' Corporate Credit Rating
--------------------------------------------------------
Standard & Poor's Ratings Services said that it affirmed its 'B+'
corporate credit rating on Reynolds Group Holdings Ltd.
"The corporate credit rating of 'B+' on Reynolds Group Holdings
Ltd. reflects a strong business risk profile as one of the world's
premier packaging companies, a highly leveraged financial risk
profile, and very aggressive financial policies," said Standard &
Poor's credit analyst Cynthia Werneth.
At the same time, S&P raised the ratings on the senior secured
debt that Reynolds had in place before it announced the Pactiv
acquisition to 'BB' (two notches above the corporate credit
rating) from 'BB-' and revised the recovery rating to '1' from
'2'. These ratings indicate S&P's expectation of very high (90%-
100%) recovery in the event of a payment default. S&P removed
these ratings from CreditWatch, where they had been placed with
positive implications on Sept. 14, 2010. In addition, S&P
affirmed the 'BB' senior secured debt ratings and the '1' recovery
ratings on the Reynolds' senior secured debt used to finance the
Pactiv acquisition.
Furthermore, S&P raised the ratings on the senior unsecured debt
that Reynolds had in place before it announced the Pactiv
acquisition to 'B' (one notch below the corporate credit rating)
from 'B-', revised the recovery rating to '5' from '6', and
removed the issue ratings from CreditWatch. These ratings
indicate S&P's expectation of modest (10%-30%) recovery in the
event of a payment default. In addition, S&P affirmed the 'B'
senior unsecured debt ratings and the '5' recovery ratings on the
Reynolds' senior unsecured debt used to finance the Pactiv
acquisition.
Also, S&P affirmed its subordinated debt rating of 'B-' (two
notches below the corporate credit rating) and recovery rating of
'6' on Reynolds' subordinated debt. These ratings indicate S&P's
expectation of negligible (0%-10%) recovery in the event of a
payment default.
In addition, S&P lowered its corporate credit rating on Pactiv to
'B+' from 'BBB' and removed it from CreditWatch where it had been
placed with negative implications on May 17, 2010, after reports
that the company was in discussions regarding a potential
leveraged buyout. S&P lowered the ratings on the Pactiv senior
unsecured debt issues that will survive the transaction to 'B'
from 'BBB' and assigned recovery ratings of '5' to this debt.
These include the $250 million Pactiv 5.875% senior unsecured
notes due 2012 that contained change of control provisions but
were not surrendered as of the acquisition date. S&P removed from
CreditWatch all the issues that S&P had placed there with negative
implications. In addition, S&P withdrew its ratings on Pactiv's
$250 million 6.4% senior unsecured notes due 2018, which also
contained change of control provisions and the majority of which
were tendered.
Reynolds, which is owned by Rank Group, a New Zealand-based
private equity firm controlled by a single individual, has
acquired Pactiv Corp. for about $6.5 billion, including assumed
debt and transaction-related costs. This represents an
approximately 9x multiple of trailing-12-month EBITDA as of
Sept. 30, 2010, pro forma for Pactiv's acquisition of PWP
Industries Inc. earlier this year. Pactiv is the maker of Hefty
brand waste and food storage bags, as well as disposable table-
and cookware for the consumer, foodservice, and restaurant
markets.
The outlook is negative. S&P could lower the ratings if Reynolds
has difficulty integrating Pactiv and fails to achieve the
targeted cost savings. Moreover, there will not be much room at
the ratings initially for any operating missteps or unforeseen
challenges. In addition, liquidity or covenant concerns or
further sizable debt-financed acquisitions in the near term could
prompt a downgrade.
To maintain the ratings, the company has to keep a high level of
performance, integrate Pactiv well, and reduce debt somewhat so
that adjusted debt leverage declines to about 6x and FFO to total
adjusted debt approaches 10%.
RIVER CITY: Case Summary & 18 Largest Unsecured Creditors
---------------------------------------------------------
Debtor: River City Cleaners, LLC
2604 N. Parham Road
Richmond, VA 23294
Bankruptcy Case No.: 10-38223
Chapter 11 Petition Date: November 30, 2010
Court: United States Bankruptcy Court
Eastern District of Virginia (Richmond)
Judge: Kevin R. Huennekens
Debtor's Counsel: David H. Worrell, Jr., Esq.
THE WORRELL LAW FIRM
710 N. Hamilton Street, Suite 110
Richmond, VA 23221
Tel: (804) 358-2318
E-mail: david.worrell@worrell-law.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 18 largest unsecured creditors
filed together with the petition is available for free
at http://bankrupt.com/misc/vaeb10-38223.pdf
The petition was signed by Julius Everett Johnson, owner.
RUST OF KENTUCKY: Bankr. Ct. Will Resolve Contract Disputes
-----------------------------------------------------------
WestLaw reports that a bankruptcy court would decline to enforce a
permissive arbitration clause in a subcontract between a
construction company that had agreed to act as a general
contractor on a public construction project and a debtor-
subcontractor. Arbitration had not been commenced prior to the
debtor's filing of an adversary proceeding against the general
contractor and surety in its Chapter 11 case. Moreover, the
general contractor and surety had both appeared in the underlying
bankruptcy. The bankruptcy court was familiar with, and fully
competent to resolve, the issues raised in the adversary
proceeding, and the debtor had no prospect of confirming a plan
until these issues were resolved. In re Rust of Kentucky, Inc., -
-- B.R. ----, 2010 WL 4510894 (Bankr. W.D. Ky.) (Lloyd, J.).
Rust of Kentucky, Inc., located in Cromwell, Ky., sought chapter
11 protection (Bankr. W.D. Ky. Case No. 10-10271) on Feb. 22,
2010. Scott A. Bachert, Esq. -- bachert@hbmfirm.com -- and
William Codell, Esq., at Harned Bachert & McGehee PSC in Bowling
Green, Ky., and Stephen M. Seeger, Esq. -- seeger@sfmlawfirm.com -
- at Seeger Faughnan Mendicino PC in Washington, D.C., represent
the Debtor. At the time of the filing, the Debtor estimated its
assets and debts at less than $10 million.
SAINT VINCENTS: Rudin Family Keen on Buying Six Buildings
---------------------------------------------------------
As reported by the Troubled Company Reporter on December 3, 2010,
Saint Vincent Catholic Medical Centers is seeking to hire CB
Richard Ellis Inc. as a real estate adviser to dispose of eight
buildings that comprise its Manhattan campus. A hearing on the
motion is set for December 16.
Theresa Agovino and Barbara Benson, writing for Crain's New York
Business, report that SVCMC already has a contract to sell six of
those buildings to the Rudin family, which planned to build a
residential complex on the site on the East side of Seventh
Avenue.
Crain's relates SVCMC is looking to CBRE to develop a
comprehensive strategy for the marketing and disposition of the
properties, taking into consideration zoning and other land-use
matters "as well as identifying the most appropriate purchaser who
will participate in a transaction that will result in the best
value" for creditors.
Mark Edelstein, Esq., a partner and a head of the real estate
division of the law firm Morrison Foerster, said SVCMC's
bankruptcy means it doesn't have to honor the contract. Mr.
Edelstein said if SVCMC found a different buyer for the
properties, the Rudins couldn't sue but could file a claim in
bankruptcy court for any damages caused by the deal's dissolution.
The buildings for sale are 1 Seventh Ave.; 133 W. 11th St.; 143 W.
11th St.; 148 W. 12th St.; 158 W. 12th St.; 170 W. 12th St.; 76
Greenwich Ave. and 20 Seventh Ave.
"We continue to negotiate with St. Vincent's," Crain's quotes John
Gilbert, chief operating officer of Rudin Management, as saying.
"We have a signed contract."
According to Crain's, CBRE will get a brokers fee equal to 0.75%
of the gross sales price up to $250 million plus 3% of the gross
sales price from $250 million to $300 million, plus 5% of the
gross sales price over $300 million.
About Saint Vincents
Saint Vincents Catholic Medical Centers of New York, doing
business as St. Vincent Catholic Medical Centers --
http://www.svcmc.org/-- was anchored by St. Vincent's Hospital
Manhattan, an academic medical center located in Greenwich Village
and the only emergency room on the Westside of Manhattan from
Midtown to Tribeca, St. Vincent's Westchester, a behavioral health
hospital in Westchester County, and continuing care services that
include two skilled nursing facilities in Brooklyn, another on
Staten Island, a hospice, and a home health agency serving the
Metropolitan New York area.
Saint Vincent Catholic Medical Centers of New York and six of its
affiliates first filed for Chapter 11 protection on July 5, 2005
(Bankr. S.D.N.Y. Case No. 05-14945 through 05-14951).
St. Vincents Catholic Medical Centers returned to bankruptcy court
by filing another Chapter 11 petition (Bankr. S.D.N.Y. Case No.
10-11963) on April 14, 2010. The Debtor estimated assets of
$348 million against debts totaling $1.09 billion in the new
petition.
Although the hospitals emerged from the prior reorganization in
July 2007 with a Chapter 11 plan said to have "a realistic chance"
of paying all creditors in full, the bankruptcy left the medical
center with more than $1 billion in debt. The new filing occurred
after a $64 million operating loss in 2009 and the last potential
buyer terminated discussions for taking over the flagship
hospital.
Adam C. Rogoff, Esq., and Kenneth H. Eckstein, Esq., at Kramer
Levin Naftalis & Frankel LLP, represent the Debtor in its
Chapter 11 effort.
SOLO CUP: S&P Downgrades Corporate Credit Rating to 'B-'
--------------------------------------------------------
Standard & Poor's Ratings Services said that it lowered all its
ratings on Solo Cup Co., including its corporate credit rating to
'B-' from 'B'. S&P removed the ratings from CreditWatch, where
they had been placed with negative implications on Aug. 13, 2010.
The outlook is negative.
"The downgrade was prompted by a weak earnings trend in 2010,
negative free cash from operations, limited liquidity, as well as
concerns about the company's ability to absorb additional raw
material cost volatility," said Standard & Poor's credit analyst
Liley Mehta.
The ratings on Solo Cup reflect the company's highly leveraged
financial profile with less than adequate liquidity, negative free
operating cash flow, and leverage of 7.5x (excluding debt-like
convertible participating preferred stock) as of Sept. 26, 2010.
This overshadows the company's market positions, as well as
ongoing restructuring actions to improve the company's cost
position. S&P characterizes Solo's business risk profile as weak
and its financial risk profile as highly leveraged.
With annual revenues of about $1.6 billion, Highland Park, Ill.-
based Solo is one of the largest providers of disposable plastic,
paper and foam cups, plates, cutlery and containers to food
service distributors, quick-service restaurants, grocery stores,
warehouse clubs, and retailers in the U.S.
The negative outlook reflects the potential for a lower rating if
operating results and liquidity fail to improve from current
levels. Given Solo's weak performance, extremely high debt
leverage, and limited liquidity, there is little room for
additional adverse developments. S&P could lower the rating if
the company continues to generate negative free cash flow,
reducing availability under the revolving credit facility to a
level that could cause the springing covenant to come into effect.
S&P could revise the outlook to stable if the company successfully
completes its restructuring actions, improves credit measures, and
generates positive free cash flow from operations. This would
improve the liquidity position and enable the company to maintain
a comfortable cushion above its fixed charge covenant. In S&P's
scenario, a 5% revenue increase in 2011, coupled with a 2%
improvement in margins from S&P's expected 2010 levels, could
result in FFO to total debt improving to appropriate levels of
10%.
TAMARACK RESORT: Property Owners Want Firm to Stay in Chapter 11
----------------------------------------------------------------
The association of property owners at Tamarack Resort LLC claims
it's close to setting the ski destination on the path to success -
- as long as the Company's lender doesn't succeed in its bid to
upend the Chapter 11 proceedings. Dow Jones' Small Cap reports.
According to the report, Tamarack Municipal Association is
throwing its weight against lender Credit Suisse Group AG's recent
motion to dismiss the bankruptcy case or convert it to a Chapter 7
liquidation.
The TMA, which recently entered into a lease agreement that could
bring the resort's ski hill to life, warned that Credit Suisse's
request could thwart the group's efforts to get the resort back on
its feet, the report notes.
"TMA respectfully suggests that impending operations will enhance
the value of the property and create operations that will likely
mitigate further loss to debtor's estate," the group said in
papers filed Wednesday with the U.S. Bankruptcy Court in Boise,
Idaho, the report relates.
About Tamarack Resort
Tamarack Resort LLC, a golf and ski resort in Valley County,
Idaho, was sent to Chapter 7 after creditors submitted an
involuntary petition (Bankr. D. Idaho Case No. 09-03911). The
petitioning creditors include an affiliate of Bank of America
Corp. owed $4.7 million.
On April 9, 2010, Bankruptcy Judge Terry Myers signed an order
converting Tamarack Resort LLC's involuntary chapter 7 case to a
chapter 11 reorganization.
The project's 27.5% owner, VPG Investments Inc., filed for Chapter
11 reorganization in 2008, only to have the petition dismissed in
October 2008 at the request of the secured creditor, Credit
Suisse, Caymans Islands Branch. VPG was controlled by Mexican
businessman Alfredo Miguel Afif. Credit Suisse, the agent for the
secured lenders, characterized VPG's Chapter 11 case as "a classic
example of a bad faith filing" made "solely as a litigation
tactic" to stop foreclosure.
TEKNI-PLEX INC: S&P Assigns 'B-' Corporate Credit Rating
--------------------------------------------------------
Standard & Poor's Ratings Services said that it assigned its 'B-'
long-term corporate credit rating to Tekni-Plex Inc. The outlook
is stable.
At the same time, S&P assigned its 'B' issue rating to the
$285 million senior secured term loan issued by Tekni-Plex Inc. In
addition, S&P assigned to the loan a recovery rating of '2',
indicating its expectation of substantial (70%-90%) recovery in
the event of a payment default. The company's $60 million asset-
based lending revolving credit facility is unrated.
"The ratings reflect the packaging and tubing manufacturer's
highly leveraged financial risk profile, including very high debt
balances and weak cash flow generation," said Standard & Poor's
credit analyst James Siahaan. "The ratings also reflect the
company's weak business risk profile, characterized by exposure to
the price fluctuations of its polymer-based raw materials and
customer concentration, partially offset by moderate end-market
and geographic diversity."
Tekni-Plex used the proceeds from the term loan offering to
refinance existing debt. Pro forma for the financing and use of
proceeds, the company's total adjusted debt at the end of its
first fiscal quarter ended Oct. 1, 2010, was roughly $540 million.
S&P adjusts debt to include accrued interest, the present value of
operating leases, tax-adjusted environmental liabilities, and
asset retirement obligations.
THOMPSON PUBLISHING: Proofs of Claim Due By Jan. 18, 2011
---------------------------------------------------------
Creditors asserting claims against Thompson Publishing Holding
Co., Inc., and its debtor-affiliates that arose prior to Sept. 21,
2010, must file their proofs of claim by 4:00 p.m., prevailing
Eastern Time, on Jan. 18, 2011. Government units have until
March 21, 2011, to file their proofs of claim. Claim forms must
be delivered to Epiq Bankruptcy Solutions, LLC, which serves as
the Debtors' noticing and claims agent. Claim forms and
additional information about the Claims Bar Date are available
at http://dm.epiq11.com/TPI/
About Thompson Publishing
Legal publisher Thompson Publishing Holding Co. Inc. and six
affiliates sought chapter 11 protection (Bankr. D. Del. Case No.
10-13070) on Sept. 21, 2010. Thompson is majority owned by Avista
Capital Partners, which bought a 50% stake in the company for
$130 million in 2006. Thompson disclosed approximately
$20 million in assets and about $166 million in liabilities as of
the Petition Date. John F. Ventola, Esq., and Lisa E. Herrington,
Esq., at Choate, Hall & Stewart LLP in Boston, Mass., and Alissa
T. Gazze, Esq., Chad A. Fights, Esq., and Derek C. Abbott, Esq.,
at Morris Nichols Arsht & Tunnell, LLP, provide the Debtors with
legal counsel, and Mark Chesen and Michael Gorman at SSG Capital
Advisors LLC in Conshohocken, Pa., provide the Debtors with
financial advisory services. Thompson Publishing sold
substantially all of its assets to its senior lenders, led by PNC
Bank, for $42 million in a Sec. 363 sale transaction in November
2010.
THYSSENKRUPP AG: PBGC Negotiates $105MM Pension Funding for Unit
----------------------------------------------------------------
The Pension Benefit Guaranty Corporation on Friday unveiled an
agreement with GLH LLC, an affiliate of ThyssenKrupp System
Engineering Inc., to accelerate funding for a pension plan
covering workers at a shuttered plant in Janesville, Wis.
The agreement stems from the Jan. 12, 2009 shutdown of
ThyssenKrupp System Engineering's Janesville plant, where 163
active participants in the GLH LLC Retirement Plan lost their
jobs. Unlike situations where the PBGC assumes responsibility for
failed pension plans, the GLH pension plan, with 4,767
participants, remains ongoing under GLH's sponsorship.
"As companies adjust their operations to fit the changing economy,
the PBGC seeks solutions that address both business goals and
retirement security," said PBGC Director Josh Gotbaum. "We
appreciate GLH's willingness to work with us to provide additional
protection for its pension plan."
Under the agreement, GLH, a non-operating unit of ThyssenKrupp
USA, made a $60 million payment to the plan in August 2010. GLH is
also scheduled to make three payments of $10 million each over the
next three years, followed by a $15.4 million payment slated
before February 28, 2014. The final three payments are subject to
reduction or complete forgiveness if the plan becomes fully
funded, or if the company ends the plan in a fully funded standard
termination proceeding. The payments are above and beyond the
company's required plan contributions and cannot be used to create
a funding surplus to offset future plan contributions.
A subsidiary of steel producer ThyssenKrupp USA, Inc.,
ThyssenKrupp System Engineering Inc. creates highly specialized
manufacturing processes for the automotive and aerospace sectors,
among others.
The Employee Retirement Income Security Act of 1974 (ERISA), the
federal pension law that created the PBGC, requires the agency to
seek additional protection when more than 20 percent of a
company's employees covered by a pension plan lose their jobs due
to a cessation of operations at a facility. However, the agency
strives to create settlements that safeguard pension plans, while
recognizing the business needs of the companies that sponsor them.
Since 2007, under this program, the PBGC has obtained more than
$750 million in additional protection for defined benefit plans
covering more than 80,000 workers and retirees.
The PBGC is a federal corporation created under ERISA. It
currently guarantees payment of basic pension benefits earned by
44 million American workers and retirees participating in over
27,500 private-sector defined benefit pension plans. The agency
receives no funds from general tax revenues. Operations are
financed largely by insurance premiums paid by companies that
sponsor pension plans and by investment returns.
TRICO MARINE: Second Auction Brings In Additional $5.3 Million
--------------------------------------------------------------
Trico Marine Services Inc. is selling two vessels for
$31.3 million -- $5.3 million higher than the $26 million
originally offered for the assets.
Bill Rochelle, the bankruptcy columnist for Bloomberg News,
reports that originally, Trico intended to sell the vessels Trico
Moon and Trico Mystic for $26 million without holding an auction.
The Official Committee of Unsecured Creditors objected to the lack
of an auction, saying it knew about a higher offer.
Mr. Rochelle adds that following an auction ordered by the
bankruptcy judge, Trico announced that the top offer, $30.5
million, came from the original buyer, Tidewater Inc., following
bidding with three other parties that participated in the auction.
According to Mr. Rochelle, a disappointed bidder came to court and
objected, saying it wasn't given the ability to submit a better
offer at the auction. U.S. Bankruptcy Judge Brendan Linehan
Shannon reopened the auction. This time, PACC Offshore Services
Holdings Pte Ltd. came out on top with an offer of $31.3 million.
About Trico Marine
Headquartered in Texas, Trico Marine Services, Inc. --
http://www.tricomarine.com/-- provides subsea services, subsea
trenching and protection services, and towing and supply vessels.
Trico filed for Chapter 11 protection on August 25, 2010 (Bankr.
D. Del. Case No. 10-12653). John E. Mitchell, Esq., Angela B.
Degeyter, Esq., and Harry A. Perrin, Esq., at Vinson & Elkins LLP,
assist the Debtor in its restructuring effort. The Debtor
disclosed $30,562,681 in assets and $353,606,467 in liabilities as
of the Petition Date.
Affiliates Trico Marine Assets, Inc. (Bankr. D. Del. Case No. 10-
12648), Trico Marine Operators, Inc. (Case No. 10-12649), Trico
Marine International, Inc. (Case No. 10-12650), Trico Marine
Cayman, L.P. (Case No. 10-12651), and Trico Holdco, LLC (Case No.
10-12652) filed separate Chapter 11 petitions.
Cahill Gordon & Reindell LLP is the Debtors' special counsel.
Alix Partners Services, LLC, is the Debtors' chief restructuring
officer. Epiq Bankruptcy Solutions is the Debtors' claims and
notice agent. Postlethwaite & Netterville serves as the Debtors'
accountant and Ernst & Young LLP serves as tax advisors.
PricewaterhouseCoopers LLC serves as independent accountants and
tax advisors to the Debtors.
Trico's foreign subsidiaries were not included in the filing and
are not be subject to the requirements of the U.S. Bankruptcy
Code.
US FOODSERVICE: Bank Debt Trades at 9% Off in Secondary Market
--------------------------------------------------------------
Participations in a syndicated loan under which U.S. Foodservice,
Inc., is a borrower traded in the secondary market at 90.63 cents-
on-the-dollar during the week ended Friday, December 3, 2010,
according to data compiled by Loan Pricing Corp. and reported in
The Wall Street Journal. This represents a drop of 0.61
percentage points from the previous week, The Journal relates.
The Company pays 275 basis points above LIBOR to borrow under the
facility. The bank loan matures on July 3, 2014, and carries
Moody's B2 rating while it is not rated by Standard & Poor's. The
loan is one of the biggest gainers and losers among 201 widely
quoted syndicated loans with five or more bids in secondary
trading for the week ended Friday.
U.S. Foodservice, Inc. -- http://www.usfoodservice.com/-- is a
foodservice supplier serving some 250,000 customers from more than
70 distribution facilities. The Company supplies restaurants,
hotels, school, and other foodservice operators with a wide
variety of food products, including canned and dry foods, meats,
frozen foods, and seafood. It also distributes kitchen equipment
and cleaning supplies among other non-food supplies. U.S.
Foodservice distributes both national brand products and its own
private labels. Tracing its roots to 1853, the company is owned
by private equity firms KKR & Co. and Clayton, Dubilier & Rice.
VERTIS HOLDINGS: Judge Gropper Approves Backstopping Agreement
--------------------------------------------------------------
Joseph Checkler of Dow Jones Daily Bankruptcy Review reports that
the Hon. Allan L. Gropper of the U.S. Bankruptcy Court in
Manhattan approved Vertis Holdings Inc.'s "backstopping" agreement
wherein second-lien bondholders have committed to buy any unsold
Company shares in the $100 million private placement.
According to Dow Jones, the 28 backstopping investors, including
major equity and bondholder Avenue Capital Management, will split
10% of the new stock as a fee.
Mr. Checkler relates that the Company's plan calls for bondholders
to swap its debt for equity and slash the direct-mail-and-insert
advertiser's debt by 60%.
About Vertis Holdings
Vertis -- http://www.thefuturevertis.com/-- is a marketing
communications company that delivers advertising, direct marketing
and interactive solutions to prominent brands across North
America.
Baltimore, Maryland-based Vertis Holdings, Inc., filed for Chapter
11 bankruptcy protection on November 17, 2010 (Bankr. S.D.N.Y.
Case No. 10-16170). The Debtor estimated its assets and debts at
more than $1 billion. Affiliates also filed separate Chapter 11
petitions -- 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).
Mark A. McDermott, Esq., and Kenneth S. Ziman, Esq., at Skadden,
Arps, Slate, Meagher & Flom LLP, serve as counsel to the Debtors.
Kurtzman Carson Consultants is the claims and notice agent.
Perella Weinberg Partners is the investment banker and financial
advisor. FTI Consulting Inc. is the restructuring and financial
advisor.
This is not the Debtors' first journey through chapter 11. On
July 15, 2008, Vertis and American Color Graphics, each commenced
prepackaged chapter 11 cases (Bankr. D. Del. Case No. 08-11460) to
complete a merger. In August 2008, Vertis emerged from
bankruptcy, completing a merger with ACG.
VITESSE SEMICONDUCTOR: M. Self Discloses 7.9% Equity Stake
----------------------------------------------------------
In a Schedule 13G filing with the Securities and Exchange
Commission on November 24, 2010, Michael Self disclosed that he
beneficially owns 1,900,000 shares of common stock of Vitesse
Semiconductor Corporation representing 7.9% of the shares
outstanding. Lake Union Capital Management, LLC and Lake Union
Capital Fund, LP also own the same number of shares.
As of December 1, 2010 there were 23,986,531 shares of the
Company's $0.01 par value common stock outstanding.
About Vitesse
Based in Camarillo, California, Vitesse Semiconductor Corporation
(Pink Sheets: VTSS.PK) -- http://www.vitesse.com/-- designs,
develops and markets a diverse portfolio of semiconductor
solutions for Carrier and Enterprise networks worldwide.
The Company's balance sheet at June 30, 2010, showed $94.02
million in total assets, $130.49 million in total liabilities, and
a $36.46 million stockholder's deficit.
In October 2009, Vitesse completed a debt restructuring
transaction that resulted in the conversion of 96.7% of the
Company's 2024 Debentures into a combination of cash, common
stock, Series B Preferred Stock and 2014 Debentures. With respect
to the remaining 3.3% of the 2024 Debentures, Vitesse settled its
obligations in cash. Additionally, Vitesse repaid $5.0 million of
its $30.0 million Senior Term Loan, the terms of which were
amended as part of the debt restructuring transactions.
WATERFORD GAMING: S&P Junks Issuer Credit Rating From 'B'
---------------------------------------------------------
Standard & Poor's Ratings Services lowered its ratings on
Waterford Gaming LLC; the issuer credit rating was lowered to
'CCC' from 'B'. At the same time, S&P placed the ratings on
CreditWatch with negative implications.
The downgrade and CreditWatch placement stem from a similar action
on Nov. 24, 2010 on Mohegan Tribal Gaming Authority (CCC/Watch
Neg/--). Waterford relies solely on distributions it receives
from Trading Cove Associates, its 50%-owned general partnership,
to service its debt obligations. Under a relinquishment
agreement, TCA receives a payment from MTGA equal to 5% of certain
gross revenues at Mohegan Sun (excluding those from Casino of the
Wind). As a result, Waterford's default risk and, therefore,
S&P's issuer credit rating on Waterford, are directly linked to
the default risk and its issuer rating on MTGA. Given Waterford's
ultimate reliance on MTGA and its lack of control over MTGA's
operations or financial policy decisions, the issuer rating on
Waterford would never be higher than that on MTGA.
Additionally, the downgrade reflects S&P's assessment that absent
significant improvement in revenue generation at Mohegan Sun over
the next several years (which S&P believes is increasingly
unlikely), S&P does not expect Waterford to be able to generate
sufficient excess cash flow to repay its notes by maturity in
2014. For this reason, S&P believes it is unlikely that the
rating will be higher than 'CCC' following the resolution of the
CreditWatch listing.
"The CreditWatch listing reflects the link between Waterford and
MTGA," explained Standard & Poor's credit analyst Melissa Long.
"S&P believes that it is increasingly likely that MTGA will seek
to restructure its capital structure in a manner that results in
some debtholders being offered less than par value."
S&P will resolve the CreditWatch listing on Waterford at the same
time S&P resolves the CreditWatch listing on MTGA so that S&P can
assess what impact, if any, MTGA's refinancing plan has on the
relinquishment payments made to Waterford through TCA. In the
event that MTGA moves forward with any actions that would disrupt
the cash flow stream that Waterford receives from TCA, S&P would
likely lower S&P's rating further.
WILBUR BAKKE: Voluntary Chapter 11 Case Summary
-----------------------------------------------
Joint Debtors: Wilbur Eugene Bakke, III
aka Burr Bakke
Jill Marie Morris
1405 Flower Drive
Sarasota, FL 34239
Bankruptcy Case No.: 10-28972
Chapter 11 Petition Date: December 1, 2010
Court: United States Bankruptcy Court
Middle District of Florida (Tampa)
Debtor's Counsel: Suzy Tate, Esq.
JENNIS & BOWEN, PL
400 North Ashley Drive, Suite 2540
Tampa, FL 33602
Tel: (813) 229-1700
Fax: (813) 229-1707
E-mail: ecf@jennisbowen.com
Estimated Assets: $500,001 to $1,000,000
Estimated Debts: $1,000,001 to $10,000,000
The Joint Debtors did not file a list of its largest unsecured
creditors together with its petition.
WOLVERINE TUBE: Proofs of Claim Due By Jan. 14, 2011
----------------------------------------------------
The Honorable Peter J. Walsh directs creditors asserting claims
against Wolverine Tube Inc. and its debtor-affiliates that arose
before Nov. 1, 2010, must file their proofs of claim by 5:00 p.m.,
prevailing Eastern Time, on Jan. 14, 2011. Governmental units
have until May 2, 2011, to file their proofs of claim. Claim
forms and additional information about the Claims Bar Date are
available from Donlin, Recano & Company, Inc., the Debtors' claims
and noticing agent, at http://www.donlinrecano.com/wti/
Huntsville, Alabama-based Wolverine Tube, Inc., is a global
manufacturer and distributor of copper and copper alloy tube,
fabricated products, and metal joining products. The Company
currently operates seven facilities in the United States, Mexico,
China, and Portugal. It also has distribution operations in the
Netherlands and the United States.
Wolverine Tube sought Chapter 11 bankruptcy protection (Bankr. D.
Del. Case No. 10-13522) on Nov. 1, 2010. Mark E. Felger, Esq.,
and Simon E. Fraser, Esq., at Cozen O'Connor represent the Debtor.
Scott K. Rutsky, Esq., and Adam T. Berkowitz, Esq., at Proskauer
Rose LLP, serve as the Debtor's special corporate and tax counsel.
Deloitte Financial Advisory Services LLP is the Debtor's financial
advisor.
Donlin Recano & Company, Inc., is the Debtor's claim agent.
The Debtor disclosed $115 million in total assets and $237 million
in total debts at the time of the filing.
Affiliates Tube Forming, L.P. (Bankr. D. Del. Case No. 10-13523),
Wolverine Joining Technologies, LLC (Bankr. D. Del. Case No.
10-13524), TF Investor Inc. (Bankr. D. Del. Case No. 10-13525),
and WT Holding Company, Inc. (Bankr. D. Del. Case No. 10-13526)
filed separate Chapter 11 petitions.
The Debtors filed a prearranged chapter 11 plan proposing to pay
unsecured creditors in full and turning ownership of the
reorganized company over to their noteholders.
* NHB Advisors Named One of Nation's Outstanding Turnaround Firms
-----------------------------------------------------------------
NHB Advisors, Inc., has been recognized as one of the few
"Outstanding Turnaround Firms" in the country by the nationally
respected publication Turnarounds & Workouts. The NHB team was
honored in 2010 for a 16th consecutive appearance on the list,
affirming the firm's reputation as "The Premier Middle Market
Turnaround Firm".
NHB Advisors, Inc. -- http://www.nhbteam.com-- is a turnaround,
crisis management and financial advisory firm. NHB professionals
provide services for out-of-court turnarounds and workouts; crisis
and interim management; the sale of distressed businesses;
refinancing; recapitalization; restructuring; litigation
consulting, valuation services, forensic accounting and expert
testimony, and bankruptcy planning and reorganization advisory and
management services. NHB has its headquarters near Philadelphia
and has offices in Boston, Dallas, Denver, Los Angeles, New York,
Wilmington, and resident offices for Florida and Mexico.
* BOND PRICING -- For Week From Nov. 29 to Dec. 3, 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
AFFIN-CALL12/10 9.000% 2/15/2012 81.000
AFFINITY GROUP 10.875% 2/15/2012 49.500
AHERN RENTALS 9.250% 8/15/2013 53.464
AMBAC INC 6.150% 2/7/2087 1.500
AMBAC INC 7.500% 5/1/2023 16.000
AMBAC INC 9.375% 8/1/2011 16.976
AMBASSADORS INTL 3.750% 4/15/2027 39.000
AT HOME CORP 0.525% 12/28/2018 0.504
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 6.000
BERRY-CALL12/10 8.875% 9/15/2014 104.750
BLOCKBUSTER INC 9.000% 9/1/2012 1.233
BOWATER INC 6.500% 6/15/2013 33.250
BOWATER INC 9.500% 10/15/2012 30.180
C&D TECHNOLOGIES 5.500% 11/15/2026 73.000
CAPMARK FINL GRP 5.875% 5/10/2012 35.250
CHAMPION ENTERPR 2.750% 11/1/2037 1.323
CIT-CALL01/11 10.250% 5/1/2017 98.000
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 39.250
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 31.000
GENERAL MOTORS 7.700% 4/15/2016 30.250
GENERAL MOTORS 9.450% 11/1/2011 26.000
GREAT ATLA & PAC 5.125% 6/15/2011 82.375
INDALEX HOLD 11.500% 2/1/2014 0.750
INTL LEASE FIN 4.300% 12/15/2010 99.251
KEYSTONE AUTO OP 9.750% 11/1/2013 46.100
LASALLE FNDG LLC 5.000% 12/15/2010 99.000
LEHMAN BROS HLDG 1.985% 6/29/2012 10.000
LEHMAN BROS HLDG 4.500% 8/3/2011 20.500
LEHMAN BROS HLDG 4.700% 3/6/2013 20.625
LEHMAN BROS HLDG 4.800% 2/27/2013 19.500
LEHMAN BROS HLDG 4.800% 3/13/2014 21.000
LEHMAN BROS HLDG 5.000% 1/22/2013 20.750
LEHMAN BROS HLDG 5.000% 2/11/2013 20.000
LEHMAN BROS HLDG 5.000% 3/27/2013 20.750
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 20.750
LEHMAN BROS HLDG 5.150% 2/4/2015 20.500
LEHMAN BROS HLDG 5.250% 2/6/2012 21.000
LEHMAN BROS HLDG 5.250% 1/30/2014 19.625
LEHMAN BROS HLDG 5.250% 2/11/2015 20.750
LEHMAN BROS HLDG 5.500% 4/4/2016 20.500
LEHMAN BROS HLDG 5.600% 1/22/2018 20.250
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% 4/25/2011 21.000
LEHMAN BROS HLDG 5.750% 7/18/2011 20.625
LEHMAN BROS HLDG 5.750% 5/17/2013 20.500
LEHMAN BROS HLDG 5.750% 1/3/2017 0.010
LEHMAN BROS HLDG 5.875% 11/15/2017 20.750
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 20.000
LEHMAN BROS HLDG 6.000% 2/12/2018 19.325
LEHMAN BROS HLDG 6.200% 9/26/2014 21.875
LEHMAN BROS HLDG 6.625% 1/18/2012 21.500
LEHMAN BROS HLDG 7.000% 4/16/2019 19.980
LEHMAN BROS HLDG 7.730% 10/15/2023 19.000
LEHMAN BROS HLDG 7.875% 8/15/2010 21.000
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 20.500
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 19.000
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 20.750
LEHMAN BROS HLDG 11.000% 7/18/2022 20.500
LEHMAN BROS HLDG 11.000% 3/17/2028 19.625
LOCAL INSIGHT 11.000% 12/1/2017 22.500
MAGNA ENTERTAINM 7.250% 12/15/2009 6.000
MASSEY ENERGY CO 2.250% 4/1/2024 87.875
MFCCN-CALL12/10 5.600% 12/15/2030 99.000
NETWORK COMMUNIC 10.750% 12/1/2013 18.500
NEWPAGE CORP 10.000% 5/1/2012 59.000
NEWPAGE CORP 12.000% 5/1/2013 34.000
PALM HARBOR 3.250% 5/15/2024 44.500
PPO-CALL12/10 8.750% 5/15/2012 99.500
PROPEX FABRICS 10.000% 12/1/2012 0.500
PSYS-CALL12/10 7.750% 7/15/2015 103.990
RADIO ONE INC 8.875% 7/1/2011 97.000
RAFAELLA APPAREL 11.250% 6/15/2011 74.438
RASER TECH INC 8.000% 4/1/2013 34.500
RESTAURANT CO 10.000% 10/1/2013 31.000
RESTAURANT CO 10.000% 10/1/2013 28.250
SPHERIS INC 11.000% 12/15/2012 1.554
TEKNI-CALL12/10 10.875% 8/15/2012 100.625
THORNBURG MTG 8.000% 5/15/2013 2.500
TIMES MIRROR CO 7.250% 3/1/2013 46.000
TOM'S FOODS INC 10.500% 11/1/2004 1.704
TRANS-LUX CORP 8.250% 3/1/2012 9.760
TRICO MARINE 3.000% 1/15/2027 4.000
TRICO MARINE SER 8.125% 2/1/2013 12.500
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
WSTC-CALL12/10 9.500% 10/15/2014 105.180
*********
Monday's edition of the TCR delivers a list of indicative prices
for bond issues that reportedly trade well below par. Prices are
obtained by TCR editors from a variety of outside sources during
the prior week we think are reliable. Those sources may not,
however, be complete or accurate. The Monday Bond Pricing table
is compiled on the Friday prior to publication. Prices reported
are not intended to reflect actual trades. Prices for actual
trades are probably different. Our objective is to share
information, not make markets in publicly traded securities.
Nothing in the TCR constitutes an offer or solicitation to buy or
sell any security of any kind. It is likely that some entity
affiliated with a TCR editor holds some position in the issuers"
public debt and equity securities about which we report.
Each Tuesday edition of the TCR contains a list of companies with
insolvent balance sheets whose shares trade higher than $3 per
share in public markets. At first glance, this list may look like
the definitive compilation of stocks that are ideal to sell short.
Don't be fooled. Assets, for example, reported at historical cost
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includes links to freely downloadable images of these small-dollar
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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
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