/raid1/www/Hosts/bankrupt/TCR_Public/101227.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 27, 2010, Vol. 14, No. 357
Headlines
AGA MANAGEMENT: Golf Course Revenues Not Cash Collateral
AIG BAKER: Section 341(a) Meeting Scheduled for Jan. 18
AIG BAKER: Taps Benton & Centeno as Bankruptcy Counsel
AMERICAN APPAREL: Deloitte Says Management Hid Fin'l Data
AMERICAN APPAREL: Marcum LLP to Reaudit FY 2009 Financials
AMERICAN MEDIA: Wins Nod to Pay Shippers & Warehousemen Claims
AMERICAN MEDIA: Wins Final Approval to Pay Trade Creditors
AMERICAN MEDIA: Wins Final Nod to Pay Employee Wages & Benefits
ARYX THERAPEUTICS: Shares to Trade at NASDAQ Capital Market
BERENFELD SPRITZER: Spokesman Blames Demise to Rothstein Ties
BIOFUEL ENERGY: To Raise $35.9-Mil. in Rights Offering
BLUEGREEN CORP: Completes Private Offering of $107 Million Notes
BONDS.COM GROUP: Has Until Jan. 20 to Raise $8 Million
BPP TEXAS: Court Extends Schedules Filing Deadline Until Jan. 18
BPP TEXAS: Gets Interim Nod to Use Citizens Bank's Cash Collateral
BPP TEXAS: Section 341(a) Meeting Scheduled for Jan. 21
BROCK TUCY: Plan Outline Hearing Scheduled for January 28
CARBON RESOURCES: Files List of 9 Largest Unsecured Creditors
CENTRAL KANSAS CRUDE: Wins Court Approval of Liquidation Plan
CINCINNATI BELL: GAMCO Investors et al. Hold 8.32% Stake
COLD CREEK: Case Summary & Unsecured Creditor
CONGRESS SAND: Taps Heller Draper as Bankruptcy Counsel
CONSPIRACY ENT: Sells $150,000 in Notes & 3.75MM Class A Warrants
CRAIG CARRIER: Case Summary & 2 Largest Unsecured Creditors
CREDIT-BASED ASSET: To Unload Worthless Securities by Yearend
CROWN MEDIA: Shareholders Elect 14 Individuals as Directors
CRYPTEK INC: Shulman Rogers Ordered to Disgorge Portion of Fees
DELPHI CORP: Court Closes Five Affiliates' Chapter 11 Cases
DELPHI CORP: Former CEO Says GM Sought Huge Payments for Warranty
DELPHI CORP: Retirees' Health Care Access Extended to 2012
DELTA PETROLEUM: Tracina Amends Pledge Accord & Promissory Note
DIABETES AMERICA: Files for Chapter 11 Protection in Texas
DRYSHIPS INC: Closes $500MM Offering of Ocean Rig Common Stock
DUKE & KING: Must Sell Outlets by Yearend Under Burger King Deal
EASTERN STATES PUMP: Voluntary Chapter 11 Case Summary
ECOLOGIX RESOURCE: Taps Michael Handelman as Chief Fin'l Officer
EMISPHERE TECH: To Develop Drug for Novo Nordisk in $57.5MM Deal
EMMIS COMM: Shareholders Elect Smulyan & Nathanson as Directors
EMPIRE RESORTS: CFO Pitts Does Not Own Any Securities
FPD LLC: Court Approves Sale of Anderson Pointe to CP Investments
FX LUXURY: 3rd Amended Reorganization Plan Declared Effective
GENERAL GROWTH: CK Mint Says It's Owed $9-Mil. Not $0
GENERAL GROWTH: Fairholme Fund Has 12% Stake in New GGP
GENERAL GROWTH: Files Objections to $73-Mil. in Claims
GENERAL GROWTH: New GGP CEO & President Said to Leave Post
GENERAL MOTORS: Did Not Violate Stay in Dealer's Ch. 11 Case
GREENBRIER COS: Clarifies Media Reports on Offering Proceeds
GSC GROUP: Hearing on Black Diamond Sale Continued
GTC BIOTHERAPEUTICS: Terminates Registration of Common Stock
GUARANTY FINANCIAL: Files Chapter 11 Liquidation Plan
GULFSTREAM INT'L: Court Decides on Further Cash Use Today
HARRISBURG, PA: City Council to Vote on Revised Budget Dec. 29
HAPPY VALLEY: Section 341(a) Meeting Scheduled for Jan. 18
HAPPY VALLEY: Taps Polsinelli Shughart as Bankruptcy Counsel
HAWKS PRAIRIE: Reorganization Plan Confirmation Set for January 27
HD SUPPLY: Daniel Pryor Resigns From Board of Directors
HIT OR MISS: Kombassan, as Alter Ego, Is Liable for UNITE Plan
HOVNANIAN ENT: Incurs $132MM After Tax Net Loss for Oct. 31 Qtr
HOVNANIAN ENT: Ara Hovnanian Owns Derivative Securities
HOVNANIAN ENT: Sirwart Hovnanian Discloses Equity Stake
IHAB TARTIR: Case Summary & 14 Largest Unsecured Creditors
JOE T WASHBURN: Kansas Court Allows IRS's Claim
JOSEPH DENNING: Case Summary & 20 Largest Unsecured Creditors
KCXP INVESTMENTS: Files Schedules of Assets & Liabilities
KCXP INVESTMENTS: Section 341(a) Meeting Scheduled for Jan. 24
KL ENERGY: Dennis Harstad Resigns as VP and Secretary
L&L FOOD CENTERS: Goes Into Receivership
LACK'S STORES: Creditors Have Until Feb. 18 to File Claims
LITHIUM TECH: Incurs $3.7 Million Net Loss for September 30 Qtr.
LOCAL INSIGHT: Court Approves Hiring of Bankruptcy Professionals
LOCAL INSIGHT: Seeks to Hire Deloitte as Independent Auditor
LPATH INC: Barclays Sells 2MM Shares, Keeps 10.6% Stake
LPATH INC: Certain Shareholders to Sell 10.9MM Class A Shares
LTAP US: Hires Landis Rath as Bankruptcy Counsel
LTAP US: Seeks to Use Wells Fargo Cash Collateral
LYONDELL CHEMICAL: Former Employees Seek Class Cert. in Bonus Suit
MAJESTIC STAR: Court OKs Conversion of MSC II from Corp. to LLC
MARVIN RICHER: Cannot Use Home State Bank Cash Collateral
MAUCTRST LLC: Fails in Bid to Dismiss Homeowners' 2003 Suit
METRO CATERING: Goes Into Receivership
MIDWEST BANC: Files Liquidating Plan With Creditors Panel
MIDWEST BANC: Court Establishes January 31 Claims Bar Date
MOLECULAR INSIGHT: Transfers Trading to OTCQB Marketplace
MPC CORPORATION: Liquidation Plan Confirmation Hearing on Feb. 15
NANCY VENCILL: Voluntary Chapter 11 Case Summary
NEOMEDIA TECH: To Sell $450,000 Secured Debenture to YA Global
NEXAIRA WIRELESS: Raises $8.6 Million in Private Sale of Shares
OLD COLONY: Wins Nod for Anderson Aquino as Bankruptcy Counsel
OLDE PRAIRIE: Disclosure Statement Hearing Continued Until March 7
OSCAR TORRES: Files List of 12 Largest Unsecured Creditors
OSCAR TORRES: Files Schedules of Assets & Liabilities
OXIGENE INC: Gets Delisting Notice From Nasdaq Stock Market
PHILLIP KEITH: Held in Contempt of Court
PHOENIX FOOTWEAR: Seeks to Halt SEC Reporting Through Stock Split
PHOENIX FOOTWEAR: James Riedman Discloses 27.4% Equity Stake
PILGRIM'S PRIDE: 5th Cir. Affirms Dismissal of Clinton Suit
PLAYLOGIC ENT: Dutch Unit Restarts Business After Bankruptcy
PRECISION OPTICS: Investors Extend Note Maturity Date to Jan. 10
RAMP CHEVROLET: Court Says GM Did Not Violate Automatic Stay
RED ROCKET: Court to Consider Plan Confirmation on February 2
RILEY BEARD: Case Summary & 20 Largest Unsecured Creditors
ROCK & REPUBLIC: To Sell IP Assets to VF Corp.
RW LOUISVILLE: Has Until February 7 to File Chapter 11 Plan
SAND TECHNOLOGY: Incurs $34,735 Net Loss for October 21 Quarter
SCOTT ROTHSTEIN: Federal Watchdog Opposes $10MM Settlement
SCOTT ROTHSTEIN: Chapter 11 Trustee Sues Lenders
SEA ISLAND: Asset Sale Completed; Ch. 11 Plan Declared Effective
SEXY HAIR: Files for Bankruptcy After Lender Talks Fail
SEXY HAIR: Case Summary & 20 Largest Unsecured Creditors
SHILO INN: Gets Interim OK to Use Cathay Bank's Cash Collateral
SPARTA COMMECIAL: Incurs $444,342 Net Loss for October 31 Quarter
STEPHEN YELVERTON: Ch. 7 Trustee Substitutes as Plaintiff
STEPHEN YELVERTON: Fails in Bid to Pursue New Claims v. Chase
STRAWBERRY PARK: Creditors File Involuntary Ch. 11 Petition
T3 MOTION: Files Preliminary S-1 Registration Statement
TENET HEALTHCARE: Comments on CHS's Plan to Nominate Directors
TERRESTAR NETWORKS: Battles With Creditors on Plan Backstop
TERRESTAR NETWORKS: Fails to Get Prompt Approval of Plan Outline
TERRESTAR NETWORKS: MetroPCS Might Bid for Assets
THOMAS FELLURE: Case Summary & 20 Largest Unsecured Creditors
THOMAS GRABANSKI: Could Not File Plan Until January 7
TONGJI HEALTHCARE: Weidong Huang Resigns as CFO
TOWNSENDS INC: Obtains $52MM DIP Loan From Wilmington Trust
TRIBUNE CO: Baltimore Sun Signs Accord With Ivan Bates
TRIBUNE CO: Committee Wants to Stay Suit vs. JPMorgan et al.
TRIBUNE CO: Step One Plan Lenders Drop Chapter 11 Plan
TRIBUNE CO: Court Stays Prosecution of Avoidance Actions
ULTIMATE ESCAPES: Court Establishes January 11 General Bar Date
UNI-PIXEL: Files Post-Effective Amendment to Add Exhibits
US AIRWAYS: To Issue 340MM Certificates to Refinance Aircraft
US AIRWAYS: Inks Codeshare Agreement With Turkish Airlines
US AIRWAYS: Files Statement of Eligibility as Trustee
US AIRWAYS: Reports November 2010 Traffic Results
UTSTARCOM INC: Board Elects Linzhen Xie as Director
VERTIS HOLDINGS: Patrick Donahue Suit Transferred to S.D.N.Y.
VITESSE SEMICONDUCTOR: CEO et al. Receive Restricted Stock Units
WASHINGTON MUTUAL: Court Snubs Equity Panel's Objection to Plan
WASHINGTON MUTUAL: Judge Junks Workers' FLSA Action V. JPMorgan
WESTHAMPTON COACHWORKS: Case Converted to Chapter 7
WHITE FARMS: Voluntary Chapter 11 Case Summary
WINDSOR LAKE: Case Summary & 20 Largest Unsecured Creditors
YRC WORLDWIDE: Gets More Time to Finalize Recovery Plan
* BOND PRICING -- For Week From Dec. 20 - Dec. 25, 2010
*********
AGA MANAGEMENT: Golf Course Revenues Not Cash Collateral
--------------------------------------------------------
Judge Randolph J. Haines rules that revenues generated through AGA
Management, LLC's management of the Papago Golf Course do not
constitute cash collateral prior to their being deposited in the
escrow account created by a Revenue Fund Agreement. Judge Haines
said the revenues are property of the Debtor and of the estate,
not subject to any express or resulting trust.
The city of Phoenix, Ariz., and Compass Bank assert the revenues
are not cash collateral because they are not property of the
estate. They contend the revenues are held in trust by the
Debtor, and the trust funds are excluded from property of the
estate by virtue of Bankruptcy Code Sec. 541(d). The Debtor
contends the revenues are property of the estate, but are not cash
collateral because they are not pledged to secure any debt.
A copy of Judge Haines' December 20, 2010 Memorandum Decision is
available at http://is.gd/jhCFEfrom Leagle.com.
John J. Hebert, Esq. -- jhebert@polsinelli.com -- at Polsinelli
Shughart, P.C., represents AGA Management.
Brian Sirower, Esq. -- brian.sirower@quarles.com -- at Quarles &
Brady LLP, argues on behalf of Compass Bank.
Madeleine C. Wanslee, Esq. -- mwanslee@gustlaw.com -- at Gust
Rosenfeld, P.L.C., is the attorney for the city of Phoenix.
About AGA Management
AGA Management, LLC, was engaged by the city of Phoenix in
December 2007 to restore, renovate, and manage the Papago Golf
Course, located at 5595 E. Moreland Street, in Phoenix, Arizona.
To fund this restoration, renovation, and operation, the Debtor
loaned $9,850,000 from Industrial Development Authority of the
city of Phoenix through the issuance of Community Development
Revenue Bonds. Russ Wiles at The Arizona Republic reported that
AGA Management stopped making payments on the loan around June
2010.
AGA Management filed for Chapter 11 protection (Bankr. D. Ariz.
Case No. 10-34580) on October 27, 2010. John J. Hebert, Esq., and
Wesley Denton Ray, Esq., at Polsinelli Shughart, P.C., in Phoenix,
serve as the Debtor's counsel. In its petition, the Debtor listed
under $500,000 in assets and between $1 million and $10 million in
debts.
AIG BAKER: Section 341(a) Meeting Scheduled for Jan. 18
-------------------------------------------------------
The U.S. Trustee for Region 21 will convene a meeting of the
creditors of AIG Baker Tallahassee, LLC, on January 18, 2011, at
2:30 p.m. The meeting will be held at Robert S. Vance Fed
Building, 1800 5th Ave. No., Room 127, Birmingham, Alabama.
This is the first meeting of creditors required under Section
341(a) of the U.S. Bankruptcy Code in all bankruptcy cases.
All creditors are invited, but not required, to attend. This
Meeting of Creditors offers the one opportunity in a bankruptcy
proceeding for creditors to question a responsible office of the
Debtor under oath about the company's financial affairs and
operations that would be of interest to the general body of
creditors.
Birmingham, Alabama-based AIG Baker Tallahassee, LLC, filed for
Chapter 11 bankruptcy protection (Bankr. N.D. Ala. Case No.
10-07353) on December 14, 2010. Lee R. Benton, Esq., at Benton &
Centeno, LLP, serves as the Debtor's bankruptcy counsel. The
Debtor estimated its assets and debts at $50 million to
$100 million.
Affiliate AIG Baker Tallahassee Communities, LLC (Bankr. N.D. Ala.
10-07354) filed a separate Chapter 11 petition on the same day.
Communities estimated its assets and debts at $50 million to
$100 million.
AIG BAKER: Taps Benton & Centeno as Bankruptcy Counsel
------------------------------------------------------
AIG Baker Tallahassee, L.L.C., asks for authorization from the
U.S. Bankruptcy Court for the Northern District of Alabama to
employ Benton & Centeno, LLP, to represent the Debtor in its
Chapter 11 bankruptcy case.
Benton & Centeno will be paid based on these rates:
Lee R. Benton, Esq. $330
Jamie A. Wilson, Esq. $180
Paralegal $80
To the best of the Debtor's knowledge, Benton & Centeno is a
"disinterested person" as that term defined in Section 101(14) of
the Bankruptcy Code.
Birmingham, Alabama-based AIG Baker Tallahassee, LLC, filed for
Chapter 11 bankruptcy protection (Bankr. N.D. Ala. Case No.
10-07353) on December 14, 2010. Lee R. Benton, Esq., at Benton &
Centeno, LLP, serves as the Debtor's bankruptcy counsel. The
Debtor estimated its assets and debts at $50 million to
$100 million.
Affiliate AIG Baker Tallahassee Communities, LLC (Bankr. N.D. Ala.
10-07354) filed a separate Chapter 11 petition on the same day.
Communities estimated its assets and debts at $50 million to
$100 million.
AMERICAN APPAREL: Deloitte Says Management Hid Fin'l Data
---------------------------------------------------------
American Apparel Inc. disclosed in a regulatory filing that on
December 15, 2010, the Audit Committee of the Company received
notice from Deloitte stating that Deloitte & Touche LLP had
concluded that the firm's audit report on the Company's previously
issued consolidated financial statements as of and for the year
ended December 31, 2009, including Deloitte's report on internal
control over financial reporting at December 31, 2009, included in
the Company's Annual Report on Form 10-K for the year ended
December 31, 2009, should not be relied upon or associated with
the 2009 financials.
Deloitte explained that its conclusion was based on the
significance of the declines in operations and gross margin in the
Company's February 2010 monthly financial statement, combined with
the January 2010 monthly financial statements, the Company's
issuance of revised projections in early May 2010 which reflected
a significant decrease in the Company's 2010 projections, and
Deloitte's disagreement with the Company's conclusion that the
results shown in the February 2010 monthly financial statements
would not have required a revision to the Company's projections
as of the date of the 10-K filing and the issuance of Deloitte's
reports. Deloitte further indicated that their decision
considered their inability to perform additional audit procedures,
their resignation as registered public accountants and their
professional judgment that they are no longer willing to rely on
management's representations due to Deloitte's belief that
management withheld from Deloitte the February 2010 monthly
financial statements until after the filing of the 2009 10-K and
made related misrepresentations.
The Audit Committee has discussed the matters disclosed with
Deloitte. The Audit Committee and the Company's management are
currently evaluating the matters. The Audit Committee has
commenced an investigation into the assertions that management
withheld the February 2010 monthly financial statements and
related misrepresentations. Management disagrees with Deloitte's
assertions and does not believe that the February 2010 monthly
financial statements were withheld. The Company does not
currently believe, including after discussions with Marcum, that
the reaudit will result in any changes to the 2009 financials,
though no assurance can be given in this regard.
As reported by the Troubled Company Reporter, effective July 22,
2010, Deloitte resigned as the independent registered public
accounting firm for American Apparel and requested that the
Company provide Deloitte with the additional information Deloitte
believed was necessary to review before the Company and Deloitte
could reach any conclusions as to the reliability of previously
issued consolidated financial statements for the year ended
December 31, 2009, and the auditors' report thereon. On July 26,
2010, the Audit Committee of the Company engaged Marcum LLP as the
Company's independent auditors to audit the Company's financial
statements for the fiscal year ending December 31, 2010.
Since July 2010, the Company has responded to a series of
information requests from Deloitte to provide the additional
information sought by Deloitte and has met with representatives of
Deloitte to discuss the information and respond to additional
questions from time to time.
Marcum LLP has replaced Deloitte.
About American Apparel
Los Angeles, Calif.-based American Apparel, Inc. (NYSE Amex: APP)
-- http://www.americanapparel.com/-- is a vertically integrated
manufacturer, distributor, and retailer of branded fashion basic
apparel. As of September 30, 2010, American Apparel employed over
10,000 people and operated 278 retail stores in 20 countries,
including the United States, Canada, Mexico, Brazil, United
Kingdom, Ireland, Austria, Belgium, France, Germany, Italy, the
Netherlands, Spain, Sweden, Switzerland, Israel, Australia, Japan,
South Korea and China.
The Company's balance sheet at September 30, 2010, showed
$322.7 million in total assets, $231.3 million in total
liabilities, and stockholders' equity of $91.4 million.
American Apparel disclosed in its quarterly report on Form 10-Q
for the third quarter of 2010 that based upon results of
operations for the nine months ended September 30, 2010, and
through the issuance of the financial statements and projected for
the remainder of 2010, the Company may not have sufficient
liquidity necessary to sustain operations for the next twelve
months, and that it is probable that beginning January 31, 2011,
the Company will not be in compliance with the minimum
Consolidated EBITDA covenant under the $80,000,000 term loan with
Lion Capital LLP.
"Noncompliance with covenants under the Lion Credit Agreement
would constitute an event of default under the BofA Credit
Agreement, which, if not waived, could block the Company from
making borrowings under the BofA Credit Agreement," the Company
said in the filing. "These factors, among others, raise
substantial doubt that the Company will be able to continue as a
going concern."
AMERICAN APPAREL: Marcum LLP to Reaudit FY 2009 Financials
----------------------------------------------------------
American Apparel Inc. disclosed in a regulatory filing that on
December 10, 2010, at the Company's 2010 Annual Meeting of
Stockholders, Marcum LLP was ratified as the Company's independent
auditors for the fiscal year ending December 31, 2010, replacing
Deloitte & Touche LLP. In connection with the ratification, the
Audit Committee and management also formally engaged Marcum to
begin to reaudit the fiscal year ending December 31, 2009.
About American Apparel
Los Angeles, Calif.-based American Apparel, Inc. (NYSE Amex: APP)
-- http://www.americanapparel.com/-- is a vertically integrated
manufacturer, distributor, and retailer of branded fashion basic
apparel. As of September 30, 2010, American Apparel employed over
10,000 people and operated 278 retail stores in 20 countries,
including the United States, Canada, Mexico, Brazil, United
Kingdom, Ireland, Austria, Belgium, France, Germany, Italy, the
Netherlands, Spain, Sweden, Switzerland, Israel, Australia, Japan,
South Korea and China.
The Company's balance sheet at September 30, 2010, showed
$322.7 million in total assets, $231.3 million in total
liabilities, and stockholders' equity of $91.4 million.
American Apparel disclosed in its quarterly report on Form 10-Q
for the third quarter of 2010 that based upon results of
operations for the nine months ended September 30, 2010, and
through the issuance of the financial statements and projected for
the remainder of 2010, the Company may not have sufficient
liquidity necessary to sustain operations for the next twelve
months, and that it is probable that beginning January 31, 2011,
the Company will not be in compliance with the minimum
Consolidated EBITDA covenant under the $80,000,000 term loan with
Lion Capital LLP.
"Noncompliance with covenants under the Lion Credit Agreement
would constitute an event of default under the BofA Credit
Agreement, which, if not waived, could block the Company from
making borrowings under the BofA Credit Agreement," the Company
said in the filing. "These factors, among others, raise
substantial doubt that the Company will be able to continue as a
going concern."
AMERICAN MEDIA: Wins Nod to Pay Shippers & Warehousemen Claims
--------------------------------------------------------------
American Media Inc. and its units sought and obtained the
Bankruptcy Court's final approval to pay $272,000 for certain
prepetition shipping charges. The Court also authorized financial
institutions to honor all related checks and electronic payment
requests.
The Debtors have told the Court their businesses depend entirely
upon the timely printing and distribution of their celebrity
journalism and health and fitness publications. With respect to
the production of their publications, the Debtors direct the
delivery of raw paper from paper mills or purchasing agents to
their contracted third-party printers. The Debtors purchase paper
supplies by two different methods:
(i) approximately 15% of the Debtors' paper supplies is
purchased directly from paper mills selected for location
and ability to handle the Debtors' high-volume requests;
and
(ii) approximately 85% of the Debtors' paper supplies is
purchased through purchasing agents who are able to obtain
the most favorable price by soliciting bids from many
different smaller paper mills.
On average, the Debtors estimate that they purchase approximately
$4.2 million worth of raw paper per month to produce their total
average newsstand and subscription circulation of approximately
7.5 million copies per issue for all publications.
The Debtors' publications are distributed to newsstands primarily
by three wholesalers, which represent 81% of the newsstand
distribution market, as well as several smaller wholesalers who
represent the remaining 19%. The Wholesalers obtain the finished
publications directly from the Debtors' printers and distribute
the finished products to the retail outlets in the United States
and Canada. While many publications go directly from the printers
to retail locations, certain publications are stored for a time by
"break agents" who aggregate and maximize the shipment of the
Debtors' publications with other publishers' products in order to
increase transportation efficiency.
The Debtors' businesses depend on two separate and equally
important transportation processes: (a) the frequent delivery of
paper products in support of printing operations and (b) the
frequent, sometimes daily, delivery of finished publications to
approximately 103,000 retail outlets and subscribers. The Debtors
contract with shippers including, without limitation, the
Wholesalers, railroads, truckers, and short-distance delivery
personnel to ship, transport, store, and deliver paper and other
printing raw materials, as well as finished publications, to and
from the Debtors' vendors, the Debtors' printers, and the Debtors'
customers.
When necessary, the Debtors and their agents also utilize certain
third-party warehousemen to store paper supplies and finished
publications while in transit. Pursuant to agreements between the
Debtors and their printers, the Debtors' paper supplies are stored
on-site at the printers. The Debtors also employ third-party
logistics coordinators for the in-bound, out-bound, and inter-
facility transport of goods and finished products.
As of the Petition Date, the Debtors estimate that the
Prepetition Shipping Charges are approximately $80,000. The
Debtors maintain that the total proposed amount to be paid to the
Shipping and Warehousing Parties is minimal compared to the
importance of the Shipping and Warehousing Parties to the their
businesses and the losses they Debtors may suffer if their
operations are disrupted.
About American Media
Based in New York, American Media, Inc., publishes celebrity
journalism and health and fitness magazines in the U.S. These
include Star, Shape, Men's Fitness, Fit Pregnancy, Natural Health,
and The National Enquirer. In addition to print properties, AMI
manages 14 different Web sites. The company also owns
Distribution Services, Inc., the country's #1 in-store magazine
merchandising company.
American Media, Inc., and 15 units, including American Media
Operations, Inc., filed for Chapter 11 protection in Manhattan
(Bankr. S.D.N.Y. Case No. 10-16140) on November 17, 2010. Judge
Martin Glenn presides over the case. Ira S. Dizengoff, Esq., Arik
Preis, Esq., Meredith A. Lahaie, Esq., Stefanie L. Kurlanzik,
Esq., and Kevin M. Eide, Esq., at Akin, Gump, Strauss, Hauer &
Feld, LLP, in New York, serve as the Debtors' bankruptcy counsel.
Moelis & Company is the Debtors' financial advisors and investment
bankers. Kurtzman Carson Consultants LLC is the claims and notice
agent.
AMI estimated assets of $0 to $50,000 and debts of $500 million to
$1 billion in its Chapter 11 petition. AMO, AMI's operating unit,
estimated assets of $100 million to $500 million and debts of
$500 million to $1 billion in its Chapter 11 petition.
American Media filed, together with the petition, a pre-packaged
Chapter 11 plan where holders of notes and bank debt would receive
either cash, new notes or stock. Judge Glenn confirmed the
Debtors' Amended Joint Prepackaged Plan of Reorganization on
December 20, 2010, clearing the way for the Debtors to emerge from
Chapter 11 reorganization by the end of 2010.
Bankruptcy Creditors' Service, Inc., publishes American Media
Bankruptcy News. The newsletter tracks the Chapter 11 proceeding
undertaken by American Media Inc. and its units.
(http://bankrupt.com/newsstand/or 215/945-7000)
AMERICAN MEDIA: Wins Final Approval to Pay Trade Creditors
----------------------------------------------------------
American Media Inc. and its units sought and obtained a final
order from the Bankruptcy Court authorizing them to pay
prepetition claims of general unsecured trade creditors in the
ordinary course of business. The Court also directed banks and
financial institutions to receive, process, honor and pay all
checks presented for payment and electronic payment requests.
In the ordinary course of business, the Debtors incur numerous
fixed, liquidated and undisputed obligations to their Trade
Creditors who provide, among other things, paper, printing
services, distribution services, office supplies and other basic
business necessities for the operation of their businesses.
According to the Debtors, allowing the payment of the Trade
Claims will minimize any disruption to their businesses and will
therefore allow for a smooth reorganization in their Chapter 11
cases.
To meet the demands inherent in the time-sensitive news publishing
industry, the Debtors rely on suppliers and vendors to deliver the
materials necessary to put out their weekly and monthly
publications, to provide the space to display the publications,
and to print and deliver those publications before their content
becomes obsolete. Without those vendors, the value of the
Debtors' business operations would be significantly diminished
and, in some cases, operations may arrest altogether.
A. Printing and Pre-Press Operational Vendors
Maintenance of good business relations with the outside vendors
that perform the Debtors' printing and pre-press operations, which
involve the conversion of electronic editorial and advertising
files into printed publications, is essential for the Debtors'
successful reorganization. The Debtors outsource a number of
printing and pre-press operations, including (i) transmittal of
files electronically to third party printing plants for
production, (ii) printing of their publications, and (iii)
transportation and delivery services.
B. Paper Suppliers
The Debtors also purchase large quantities of paper products at a
reduced cost compared to other potential paper sources. If these
reduced-cost Trade Creditors stop supplying the Debtors with
goods, the Debtors relate that they would have to purchase those
goods from more expensive vendors, who may lack the ability to
provide the necessary goods in the type and quantities the
Debtors require, all of which would negatively impact the Debtors'
revenue and impair their ability to operate.
C. Subscription Needs
Other Trade Creditors handle all of the Debtors' subscription
needs for the Debtors' United States and Canada operations,
including handling all of the billing and revenue collection
services and the storage of subscribers' personal account
information. The Debtors maintain that certain Trade Creditors
track information on the number of magazine copies sold in the
United States and Canada, which information is then made available
to third parties, like advertisers. According to the Debtors,
this audited information is critical to the Debtors' advertisers
who make spending decisions based on the number of subscribers or
copies sold, and no other companies provide these or similar
services.
D. Distribution Services
The Debtors rely on certain Trade Creditors to distribute the
single copies of their publications to approximately 103,000
retail outlets in the United States and Canada, representing what
the Debtors believe to be substantially complete coverage of
periodical outlets in these countries. These Trade Creditors also
process returns of the Debtors' publications, bill and collect
from the retailers, and make payments to the Debtors' national
distributors. Without these Trade Creditors, the Debtors would be
unable to circulate their magazines for sale and thus they would
lose a substantial portion of their revenue stream.
E. Retail Incentives and Rack Costs
The Debtors' publications at supermarkets, convenience stores,
pharmacies, newsstands and other retail outlets are sold from
racks, displays and retail display pockets placed at specific
locations at the retailers' businesses. The Debtors are
responsible for three types of charges payable to these retailers;
specifically, (a) fees paid in exchange for use of the actual
space at the checkout counter for display purposes, (b) retail
display allowances, which are fees paid based on quarterly claim
forms from the retailer, generally equal to 10% of the cover price
for each magazine sold, and (c) retail display pockets, which are
fees fixed per pocket the retailer devotes to the Debtors'
publications.
F. Miscellaneous Services
Other Trade Creditors provide vital editorial services and
editorial content to the Debtors, including overseeing the quality
control, overall layout and content of certain of the Debtors'
publications. Other Trade Creditors support the various IT
infrastructure needs of the Debtors, like hardware and software
support for the editorial staff, accounting, human resources,
legal departments, internet web sites for the Debtors' various
digital properties, and other essential functions.
The Debtors estimate that, over the anticipated duration of their
Chapter 11 cases, they will owe approximately $20.4 million on
account of undisputed Trade Claims for prepetition goods and
services that become due and payable after the Petition Date.
Of that, the Debtors are seeking to pay approximately $7.3 million
to Trade Creditors within the first 20 days of these cases.
The Debtors believe that payment of the Trade Claims will not
create an imbalance of their cash flows because the majority of
these obligations have customary payment terms and will not be
immediately payable. The Debtors represent that they have
sufficient availability of funds to pay the amounts described
herein in the ordinary course of business by virtue of expected
cash flows from ongoing business operations and anticipated access
to cash collateral.
Christopher Polimeni, executive vice president for Finance and
Planning, chief financial officer and treasurer of American Media,
Inc., stated in a declaration in support of the Motion that the
Motion should be granted because:
(a) it will help avoid the irreparable harm and disruption to
the Debtors' business and thus maximize the value of their
estate;
(b) it will enable the Debtors to stabilize relationships with
vendors critically important to their business;
(c) it will cause no harm to the Debtors' other generally
unsecured creditors since the Plan provides for all
holders of general unsecured claims to be paid in full;
and
(d) the administrative agent for the lenders of the Debtors'
prepetition credit facility, whose cash collateral is
being used to pay the Trade Creditors, has consented to
the relief sought in the Motion.
About American Media
Based in New York, American Media, Inc., publishes celebrity
journalism and health and fitness magazines in the U.S. These
include Star, Shape, Men's Fitness, Fit Pregnancy, Natural Health,
and The National Enquirer. In addition to print properties, AMI
manages 14 different Web sites. The company also owns
Distribution Services, Inc., the country's #1 in-store magazine
merchandising company.
American Media, Inc., and 15 units, including American Media
Operations, Inc., filed for Chapter 11 protection in Manhattan
(Bankr. S.D.N.Y. Case No. 10-16140) on November 17, 2010. Judge
Martin Glenn presides over the case. Ira S. Dizengoff, Esq., Arik
Preis, Esq., Meredith A. Lahaie, Esq., Stefanie L. Kurlanzik,
Esq., and Kevin M. Eide, Esq., at Akin, Gump, Strauss, Hauer &
Feld, LLP, in New York, serve as the Debtors' bankruptcy counsel.
Moelis & Company is the Debtors' financial advisors and investment
bankers. Kurtzman Carson Consultants LLC is the claims and notice
agent.
AMI estimated assets of $0 to $50,000 and debts of $500 million to
$1 billion in its Chapter 11 petition. AMO, AMI's operating unit,
estimated assets of $100 million to $500 million and debts of
$500 million to $1 billion in its Chapter 11 petition.
American Media filed, together with the petition, a pre-packaged
Chapter 11 plan where holders of notes and bank debt would receive
either cash, new notes or stock. Judge Glenn confirmed the
Debtors' Amended Joint Prepackaged Plan of Reorganization on
December 20, 2010, clearing the way for the Debtors to emerge from
Chapter 11 reorganization by the end of 2010.
Bankruptcy Creditors' Service, Inc., publishes American Media
Bankruptcy News. The newsletter tracks the Chapter 11 proceeding
undertaken by American Media Inc. and its units.
(http://bankrupt.com/newsstand/or 215/945-7000)
AMERICAN MEDIA: Wins Final Nod to Pay Employee Wages & Benefits
---------------------------------------------------------------
American Media, Inc., and its debtor-affiliates sought and
obtained final authority from the Bankruptcy Court to:
(i) pay and honor certain prepetition wages, commissions,
salaries, employee benefits, and other compensation,
taxes, withholdings and reimbursable expenses;
(ii) pay, honor and continue all obligations relating to
medical and other benefit programs; and
(iii) pay and honor certain payments to non-employee members of
their workforces.
As of the Petition Date, the Debtors employed approximately 638
full-time and 1,246 part-time employees in hourly, salaried,
supervisory, management, and administrative positions to perform
the functions necessary to effectively and efficiently operate
their businesses. Approximately 633 of the Employees are
salaried, and the remaining Employees are compensated on an hourly
basis. All of the Debtors' Employees are employed in the United
States, except for six Employees who are employed in Canada by
Distribution Services, Inc.
The Employees perform a variety of critical functions, including
accounting, administrative support, accounts payable, billing
operations, compliance, human resources, information technology,
legal, marketing, advertising, payroll, advertising sales,
distribution, editorial, marketing, production, logistics, and
circulation.
The Debtors believe that, as of the Petition Date, the majority of
all prepetition amounts owed on account of the Employee
Obligations have been satisfied. However, certain wage
obligations have accrued since the Debtors' last payroll payment.
Additionally, the Debtors note, certain amounts may remain
outstanding due to a number of factors, including:
(a) discrepancies that exist between amounts paid prepetition
and the amounts that should have been paid;
(b) the possibility that some prepetition checks or other
payments may not have cleared before the Petition Date;
(c) the fact that certain accrued obligations may not yet have
become due and payable as of the Petition Date; and
(d) the possibility that certain prepetition amounts related
to the Employees may have accrued but remain outstanding
because they are pending approval or they have not yet
been submitted.
The Debtors estimate that these amounts remain unpaid with respect
to the Employee Obligations as of the Petition Date:
Payroll Obligations $529,275
Employee Severance Obligations $235,742
Employee Incentive Programs $0
Gross Pay Deductions, etc. -
Reimbursable Expenses $70,172
Employee Benefits -
Temporary Employees $2,010
Freelancers $0
Payments to Sources $0
Commissions to Non-Employees $32,293
Third Party Consultants $53,121
The Court also authorized financial institutions to honor all
related checks and electronic payment request.
About American Media
Based in New York, American Media, Inc., publishes celebrity
journalism and health and fitness magazines in the U.S. These
include Star, Shape, Men's Fitness, Fit Pregnancy, Natural Health,
and The National Enquirer. In addition to print properties, AMI
manages 14 different Web sites. The company also owns
Distribution Services, Inc., the country's #1 in-store magazine
merchandising company.
American Media, Inc., and 15 units, including American Media
Operations, Inc., filed for Chapter 11 protection in Manhattan
(Bankr. S.D.N.Y. Case No. 10-16140) on November 17, 2010. Judge
Martin Glenn presides over the case. Ira S. Dizengoff, Esq., Arik
Preis, Esq., Meredith A. Lahaie, Esq., Stefanie L. Kurlanzik,
Esq., and Kevin M. Eide, Esq., at Akin, Gump, Strauss, Hauer &
Feld, LLP, in New York, serve as the Debtors' bankruptcy counsel.
Moelis & Company is the Debtors' financial advisors and investment
bankers. Kurtzman Carson Consultants LLC is the claims and notice
agent.
AMI estimated assets of $0 to $50,000 and debts of $500 million to
$1 billion in its Chapter 11 petition. AMO, AMI's operating unit,
estimated assets of $100 million to $500 million and debts of
$500 million to $1 billion in its Chapter 11 petition.
American Media filed, together with the petition, a pre-packaged
Chapter 11 plan where holders of notes and bank debt would receive
either cash, new notes or stock. Judge Glenn confirmed the
Debtors' Amended Joint Prepackaged Plan of Reorganization on
December 20, 2010, clearing the way for the Debtors to emerge from
Chapter 11 reorganization by the end of 2010.
Bankruptcy Creditors' Service, Inc., publishes American Media
Bankruptcy News. The newsletter tracks the Chapter 11 proceeding
undertaken by American Media Inc. and its units.
(http://bankrupt.com/newsstand/or 215/945-7000)
ARYX THERAPEUTICS: Shares to Trade at NASDAQ Capital Market
-----------------------------------------------------------
ARYx Therapeutics Inc. has been notified by The NASDAQ Stock
Market that the listing of its common stock will be transferred
from The NASDAQ Global Market to The NASDAQ Capital Market
effective with the open of business on December 21, 2010.
On October 8, 2010, following notice of non-compliance with the
NASDAQ stockholders' equity requirement for continued listing on
The NASDAQ Global Market, ARYx requested a hearing before a NASDAQ
Listing Qualifications Panel. The NASDAQ decision to transfer
ARYx's securities to The NASDAQ Capital Market follows the hearing
with the Panel in November and the Panel's review of additional
information, including the information contained in the Company's
press release dated December 15, 2010.
While ARYx does not currently satisfy the stockholders' equity
requirement for continued listing on The NASDAQ Capital Market,
ARYx presented a plan to the Panel for regaining and sustaining
compliance with the stockholders' equity requirement and all other
applicable listing requirements, including the $1.00 per share bid
price requirement. Accordingly, the Panel has directed ARYx to
file a transfer application with the NASDAQ Staff and, provided
the transfer application is approved, the Panel has granted the
Company through April 4, 2011, to regain compliance with the
stockholders' equity requirement for The NASDAQ Capital Market.
The Panel decision further provides that ARYx must demonstrate a
closing bid price of at least $1.00 per share for ten consecutive
business days on or before May 23, 2011. While the Company is
working toward regaining compliance with all applicable listing
requirements, there can be no assurance that it will be able to do
so or that its securities will continue to remain listed on The
NASDAQ Stock Market.
ARYx previously announced that it is waiting for definitive
guidance from the Food and Drug Administration on the Phase 3
development of its product candidate to treat various
gastrointestinal disorders, naronapride. That guidance was to
have been received by November 5, 2010 and has instead been
delayed by the FDA until the end of the first quarter 2011.
Efforts are underway to continue to finance ARYx beyond
December 31, 2010 and, in conjunction with this, the ARYx board of
directors has substantially reduced the Company's expenditures so
that ARYx can maintain its functions as an operating company
awaiting the FDA guidance. This includes, among other actions,
the retention of all ARYx officers under a compensation plan as
disclosed in the Form 8-K filed on December 16, 2010. There is no
assurance ARYx will be able to obtain necessary agreements from
its secured creditors and the additional funding from investors
needed to continue operations beyond 2010 and through to the
receipt of the anticipated FDA guidance.
About ARYx Therapeutics
Fremont, Calif.-based ARYx Therapeutics, Inc. (NASDAQ: ARYX)
-- http://www.aryx.com/-- is a biopharmaceutical company. ARYx
currently has four products in clinical development: a prokinetic
agent for the treatment of various gastrointestinal disorders,
naronapride (ATI-7505); an oral anticoagulant agent for patients
at risk for the formation of dangerous blood clots, tecarfarin
(ATI-5923); an oral anti-arrhythmic agent for the treatment of
atrial fibrillation, budiodarone (ATI-2042); and, an agent for the
treatment of schizophrenia and other psychiatric disorders, ATI-
9242.
The Company's balance sheet as of September 3, 2010, showed
$6.0 million in total assets, $13.7 million in total liabilities,
and a stockholders' deficit of $7.7 million.
As reported in the Troubled Company Reporter on April 9, 2010,
Ernst & Young LLP, in Palo Alto, Calif., expressed substantial
doubt about the Company's ability to continue as a going concern,
following review of the Company's 2009 results, citing the
Company's recurring losses from operations and stockholders'
deficit.
BERENFELD SPRITZER: Spokesman Blames Demise to Rothstein Ties
-------------------------------------------------------------
Paul Brinkmann, writing for South Florida Business Journal,
reports that a spokesman for Coral Gables-based Berenfeld Spritzer
Shechter & Sheer, one of South Florida's largest accounting firms,
confirmed that 14 partners and 100 associates would join Richmond,
Virginia-based Cherry Bekaert & Holland. Five other partners will
pursue other career paths.
Emery Sheer, partner at Berenfeld, told the Business Journal that
the scandal of Ponzi schemer Scott Rothstein had been a major
factor in the demise of the firm, coming during a major recession.
Berenfeld had provided tax accounting to Mr. Rothstein, his law
firm and a major feeder fund in the Ponzi case.
Founded in 1971, the Berenfeld firm said in an August news release
that it had 150 professionals providing accounting, audit, tax,
litigation support and advisory services, the Business Journal
notes.
BIOFUEL ENERGY: To Raise $35.9-Mil. in Rights Offering
------------------------------------------------------
Biofuel Energy Corp. disclosed in an amended Form S-1 filing with
the Securities and Exchange Commission on December 15, 2010, that
it is distributing at no charge to the record holders of its
common stock as of 5:00 p.m., New York City time, on December 27,
2010, non-transferable subscription rights to purchase depositary
shares representing shares of Series A Non-Voting Convertible
Preferred Stock.
The number of subscription rights distributed to the Company's
record holders will be 64,210,390. Subject to certain conditions
and possible reductions, the total proceeds expected to be raised
in the rights offering is $35,957,818.
The subscription rights will be distributed pro rata to the
holders of the Company's common stock based on the number of
shares of common stock held on the record date. Each subscription
right will permit the holder of such right to acquire, at a rights
price equal to $0.56 per depositary share, one depositary share
under the basic subscription privilege and will also provide an
over-subscription privilege. This rights price represents an
approximately 66% discount to the closing price of the Company's
common stock on December 13, 2010.
The over-subscription privilege will entitle the holder of the
subscription right to subscribe for an additional amount of
depositary shares equal to up to 100% of the depositary shares for
which the holder was otherwise entitled to subscribe. The
subscription rights will expire and have no value if they are not
exercised by 5:00 p.m., New York City time, on January 28, 2011,
the expiration date.
The subscription rights may not be sold or transferred. All
exercises of subscription rights are irrevocable. A portion of
the rights offering to certain of the Company's existing
stockholders is being conducted on a private, non-registered
basis.
Each depositary share will represent a fractional interest in a
share of Series A Non-Voting Convertible Preferred Stock equal to
approximately 0.0311 of a share of Series A Non-Voting Convertible
Preferred Stock and will entitle the holder, through the
depositary, to a proportional fractional interest in the rights
and preferences of such share of Series A Non-Voting Convertible
Preferred Stock, including conversion, dividend, liquidation and
voting rights, subject to the terms of the deposit agreement.
Each share of Series A Non-Voting Convertible Preferred Stock
will, following the approval by the holders of the Company's
common stock and class B common stock of the authorization and
issuance of additional shares of common stock, automatically
convert into approximately 32.1052 shares of common stock. Upon
conversion of the Series A Non-Voting Convertible Preferred Stock,
each depositary share shall entitle the holder thereof to receive
one share of common stock and, upon the distribution of one share
of common stock to the holder of each such depositary share, each
such depositary share shall be automatically cancelled and have no
further value.
The depositary will distribute the shares of common stock it
receives upon conversion of the Series A Non-Voting Convertible
Preferred Stock to the holders of the depositary shares entitled
to receive such distribution in proportion to the number of
outstanding depositary shares held by each such holder, on the
date of receipt or as soon as practicable thereafter.
BioFuel Energy Corp. is a holding company and its sole asset is
its membership interest in BioFuel Energy, LLC. Concurrent with
this rights offering, the LLC will be conducting a private
placement. The LLC's concurrent private placement has been
structured so as to provide the holders of membership interests in
the LLC (other than BioFuel Energy Corp.), whose interests are
exchangeable on a one-for-one basis for shares of common stock,
with a private placement that is economically equivalent to this
rights offering. Subject to certain conditions and possible
reductions, the total proceeds expected to be raised by the LLC in
the LLC's concurrent private placement is $10,042,182.
Existing stockholders and holders of membership interests in the
LLC that are also lenders under the Company's bridge loan
agreement have agreed, subject to certain conditions and possible
reductions, to purchase depositary shares in an amount equal to
their full basic subscription privileges, to participate in the
LLC's concurrent private placement for their full LLC basic
purchase privileges and to purchase immediately prior to
expiration of this rights offering all of the available depositary
shares not otherwise sold in this rights offering and to purchase
all of the available preferred membership interests in the LLC not
otherwise sold in the LLC's concurrent private placement. Any
depositary shares purchased by these parties will be purchased
directly from us on a private basis and are not being registered
pursuant to the registration statement of which this prospectus is
a part.
The depositary shares will be transferable following the initial
issuance of the depositary shares. The depositary shares will not
be listed for trading on any stock exchange. The depositary
shares are a new issue of securities for which there currently is
no market.
About Biofuel Energy
Denver, Colo.-based BioFuel Energy Corp. (Nasdaq: BIOF)
-- http://www.bfenergy.com/-- aims to become a leading ethanol
producer in the United States by acquiring, developing, owning and
operating ethanol production facilities. It currently has two
115 million gallons per year ethanol plants in the Midwestern corn
belt.
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 2010.
"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.
BLUEGREEN CORP: Completes Private Offering of $107 Million Notes
----------------------------------------------------------------
Bluegreen Corporation completed a private offering and sale of
$107.6 million of investment-grade, timeshare loan-backed notes on
December 17, 2010. The 2010-A Term Securitization consisted of
the issuance of $88.0 million of A rated and $19.6 million of BBB-
rated timeshare-loan backed notes with coupon rates of 5.1% and
7.5%, respectively, which blended to a weighted average coupon
rate of 5.5%. The advance rate for this transaction was 85.25%.
BB&T Capital Markets acted as the sole placement agent and initial
purchaser.
The amount of the timeshare receivables sold was $126.2 million,
substantially all of which was provided at closing. The gross
proceeds of $107.6 million were used to:
-- repay Branch Banking and Trust $93.6 million, representing
all amounts currently outstanding under the Company's
existing receivables purchase facility with BB&T,
including accrued interest;
-- capitalize a reserve fund; and
-- pay fees and expenses associated with the transaction.
The remainder of the proceeds, $9.9 million, will be used for
general corporate purposes.
While ownership of the timeshare receivables included in the
2010-A Term Securitization is transferred and sold for legal
purposes, the transfer of these timeshare receivables will be
accounted for as a secured borrowing for financial accounting
purposes.
About Bluegreen Corp.
Bluegreen Corporation -- http://www.bluegreencorp.com/-- provides
places to live and play through its resorts and residential
community businesses. The company is organized into two
divisions: Bluegreen Resorts and Bluegreen Communities. Bluegreen
Resorts acquires, develops and markets vacation ownership
interests in resorts located in drive-to vacation destinations and
provides various services to third-party resort owners. Bluegreen
Communities acquires, develops and subdivides property and markets
residential land homesites, which are sold directly to retail
customers who seek to build a home in a residential setting, in
some cases on properties featuring a golf course and related
amenities, and also offers real estate consulting and other
services to third parties. It also generates income from its
resort management business and through interest income earned from
the financing of individual purchasers of VOIs, and homesites sold
by Bluegreen Communities.
Bluegreen Corp. has a 'CCC' corporate credit rating, with positive
outlook, from Standard & Poor's Ratings Services.
BONDS.COM GROUP: Has Until Jan. 20 to Raise $8 Million
------------------------------------------------------
Bonds.com Group, Inc., and UBS Americas Inc. amended the UBS
Purchase Agreement on December 15, 2010, to extend the deadline
for the Company to raise an aggregate of at least $8,000,000 from
December 15, 2010, to January 20, 2011. To date, the Company has
raised an aggregate of $3,500,000 pursuant to this financing.
Bonds.com consummated a financing transaction pursuant to which,
among other things, the Company entered into a Unit Purchase
Agreement with UBS Americas and a Unit Purchase Agreement with
Bonds MX, LLC, on October 19, 2010.
The UBS Purchase Agreement contains a provision pursuant to which
significant adjustments may be made to the terms and amount of the
securities issued to UBS Americas and other investors pursuant to
such financing transaction. Among other adjustments, the UBS Unit
Purchase Agreement provides for significant adjustments to the
number and terms of the securities issued and issuable to UBS
Americas and the other investors if the Company does not raise an
aggregate of at least $8,000,000 by a specified deadline.
Ppursuant to the terms of the amendments of certain outstanding
convertible promissory notes, if additional securities are issued
to UBS Americas, the holders of the convertible notes would
receive the same proportionate adjustment. Any adjustments would
be significantly dilutive to existing securities holders and could
create substantial challenges for the Company's efforts to raise
additional capital.
About Bonds.com Group
Based in Boca Raton, Florida, Bonds.com Group, Inc. (OTC BB: BDCG)
-- http://www.bonds.com/-- through its subsidiary Bonds.com,
Inc., serves institutional fixed income investors by providing a
comprehensive zero subscription fee online trading platform. The
Company designed the BondStation and BondStationPro platforms to
provide liquidity and competitive pricing to the fragmented Over-
The-Counter Fixed Income marketplace.
The Company differentiates itself by offering through Bonds.com,
Inc. an inventory of more than 35,000 fixed income securities from
more than 175 competing sources. Asset classes currently offered
on BondStation and BondStationPro, the Company's fixed income
trading platforms, include municipal bonds, corporate bonds,
agency bonds, certificates of deposit, emerging market debt,
structured products and U.S. Treasuries.
The Company's balance sheet at September 30, 2010, showed
$1,565,132 in total assets, $9,823,058 in total liabilities, and a
stockholders' deficit of $8,257,925.
BPP TEXAS: Court Extends Schedules Filing Deadline Until Jan. 18
----------------------------------------------------------------
The Hon. Brenda T. Rhoades of the U.S. Bankruptcy Court for the
Eastern District of Texas extended, at the behest of BPP Texas,
LLC, et al., the deadline for the filing of schedules of assets
and liabilities, and statements of financial affairs until
January 18, 2011.
The original schedules filing deadline is January 4, 2011. The
Debtors asked for an extension, saying that the bankruptcy cases
were filed on an emergency basis because the Debtors' lender
initiated multiple state court proceedings against the Debtors,
threatening the appointment of a receiver for the Hotels and later
foreclosure on the Debtors' properties. The Debtors said that
there was little preparation for filing of the bankruptcy cases
and they didn't have the opportunity to compile the detailed
information necessary to complete their schedules and statements.
The Debtors are a part of a complex financial and corporate
structure comprising of, among other things, 22 hotels, with
multiple executory contracts, franchises, and financial
relationships, all of which need to be fully understood to be
properly scheduled. The complexities, coupled with the emergency
filing, made it difficult for the Debtors and their new bankruptcy
counsel to begin preparing Debtors' schedules and statements of
financial affairs, especially as the Debtors otherwise prepared
for their filings, first day motions, and potential litigation
over cash collateral -- all of which are more important for the
future success of their reorganization efforts at this critical
early stage of the bankruptcy cases.
About BPP Texas
Pittsburgh, Pennsylvania-based BPP Texas, LLC, along with BPP
Illinois, LLC, BPP Iowa, LLC, BPP Michigan, LLC, BPP Minnesota,
LLC, and BPP Wisconsin, LLC, own and operate 22 hotels located in
Texas, Illinois, Iowa, Michigan, Minnesota, and Wisconsin.
BPP Texas and several affiliates filed for Chapter 11 bankruptcy
protection on December 21, 2010 (Bankr. E.D. Tex. Lead Case No.
10-44378). Davor Rukavina, Esq., and Jonathan Lindley Howell,
Esq., at Munsch Hardt Kopf & Harr, P.C., serve as the Debtors'
bankruptcy counsel. BPP Texas estimated its assets at $1 million
to $10 million and debts at $50 million to $100 million.
Affiliates BPP Illinois, BPP Iowa, BPP Michigan, BPP Minnesota,
and BPP Wisconsin filed separate Chapter 11 bankruptcy petitions.
BPP Wisconsin estimated its assets at $10 million to $50 million
and debts at $50 million to $100 million.
BPP TEXAS: Gets Interim Nod to Use Citizens Bank's Cash Collateral
------------------------------------------------------------------
BPP Texas, LLC, et al., sought and obtained interim authorization
from the Hon. Brenda T. Rhoades of the U.S. Bankruptcy Court for
the Eastern District of Texas to use cash, which constitutes
collateral securing obligations to Citizens Bank of Pennsylvania,
for the period commencing on December 21, 2010, through and
including the conclusion of a final hearing.
The Debtors are each obligated to Citizens in an amount of at
least $66 million. Pursuant to multiple prepetition loan and
security agreements, Citizens claims perfected security interests
and liens in substantially all of the Debtors' assets, including
cash collateral. Citizens has alleged that the Debtors are in
default of their obligations, and has accelerated the obligations,
refusing to restructure the terms of those obligations.
Davor Rukavina, Esq., at Munsch Hardt Kopf & Harr, P.C., explains
that the Debtors need the money to fund their Chapter 11 case, pay
suppliers and other parties. The Debtors will use the collateral
pursuant to a budget, a copy of which is available for free at:
http://bankrupt.com/misc/BPP_TEXAS_interimbudget.pdf
In exchange for using the cash collateral, the Debtors will grant
Citizens automatically perfected, valid, and binding replacement
lien, with the same priority and validity as existed on the
Petition Date, in and to all of the Debtors' property and estates,
to the extent of any diminution in the value of Citizens'
collateral. To the extent that there is a failure of adequate
protection regarding the Debtors' usage of cash collateral,
Citizens will be granted an automatic superpriority administrative
claim which will be superior in priority to all other unsecured
administrative claims.
The Debtors will provide Citizens monthly reports, monthly balance
sheets, reconciliation reports comparing budgeted expenditures to
actual expenditures and other non-proprietary reports and
financial data reasonably requested by Citizens.
Cash, bank accounts, and cash equivalents for each debtor will be
kept separate by that debtor from each other debtor. The Debtors
must not comingle funds or transfer funds to each other unless the
Court, by separate order entered after notice and a hearing,
authorizes it.
The Court has set a final hearing for January 19, 2011, at
9:00 a.m. to consider the Debtors' continued use of the cash
collateral.
About BPP Texas
Pittsburgh, Pennsylvania-based BPP Texas, LLC, along with BPP
Illinois, LLC, BPP Iowa, LLC, BPP Michigan, LLC, BPP Minnesota,
LLC, and BPP Wisconsin, LLC, own and operate 22 hotels located in
Texas, Illinois, Iowa, Michigan, Minnesota, and Wisconsin.
BPP Texas and several affiliates filed for Chapter 11 bankruptcy
protection on December 21, 2010 (Bankr. E.D. Tex. Lead Case No.
10-44378). Davor Rukavina, Esq., and Jonathan Lindley Howell,
Esq., at Munsch Hardt Kopf & Harr, P.C., serve as the Debtors'
bankruptcy counsel. BPP Texas estimated its assets at $1 million
to $10 million and debts at $50 million to $100 million.
Affiliates BPP Illinois, BPP Iowa, BPP Michigan, BPP Minnesota,
and BPP Wisconsin filed separate Chapter 11 bankruptcy petitions.
BPP Wisconsin estimated its assets at $10 million to $50 million
and debts at $50 million to $100 million.
BPP TEXAS: Section 341(a) Meeting Scheduled for Jan. 21
-------------------------------------------------------
The U.S. Trustee for Region 6 will convene a meeting of BPP Texas,
LLC's creditors on January 21, 2011, at 10:30 a.m. The meeting
will be held at Plano Centre, 2000 East Spring Creek Parkway, in
Plano, Texas.
This is the first meeting of creditors required under Section
341(a) of the U.S. Bankruptcy Code in all bankruptcy cases.
All creditors are invited, but not required, to attend. This
Meeting of Creditors offers the one opportunity in a bankruptcy
proceeding for creditors to question a responsible office of the
Debtor under oath about the company's financial affairs and
operations that would be of interest to the general body of
creditors.
About BPP Texas
Pittsburgh, Pennsylvania-based BPP Texas, LLC, along with BPP
Illinois, LLC, BPP Iowa, LLC, BPP Michigan, LLC, BPP Minnesota,
LLC, and BPP Wisconsin, LLC, own and operate 22 hotels located in
Texas, Illinois, Iowa, Michigan, Minnesota, and Wisconsin.
BPP Texas and several affiliates filed for Chapter 11 bankruptcy
protection on December 21, 2010 (Bankr. E.D. Tex. Lead Case No.
10-44378). Davor Rukavina, Esq., and Jonathan Lindley Howell,
Esq., at Munsch Hardt Kopf & Harr, P.C., serve as the Debtors'
bankruptcy counsel. BPP Texas estimated its assets at $1 million
to $10 million and debts at $50 million to $100 million.
Affiliates BPP Illinois, BPP Iowa, BPP Michigan, BPP Minnesota,
and BPP Wisconsin filed separate Chapter 11 bankruptcy petitions.
BPP Wisconsin estimated its assets at $10 million to $50 million
and debts at $50 million to $100 million.
BROCK TUCY: Plan Outline Hearing Scheduled for January 28
---------------------------------------------------------
The U.S. Bankruptcy Court for the District of Massachusetts will
convene a hearing on January 28, 2011, to consider adequacy of the
Disclosure Statement explaining Brock P. Tucy and Maple Park
Properties, Inc.'s proposed Chapter 11 Plan, as further amended.
The Debtors will begin soliciting votes on the Plan following
approval of the Disclosure Statement.
As reported by the Troubled Company Reporter on November 10, 2010,
the Plan contemplates that the Debtors continue their business of
owning an operating a recreational park. The Debtors propose to
pay their administrative creditors, priority tax claims, and
secured creditors to the extent of the value of the collateral
securing their claims from cash on hand and future revenues. It
also proposes to pay unsecured creditors 100% dividend payable in
five annual installments, with the first installment on June 1,
2011.
Under the Plan, all quarterly disbursement fees, accrued prior to
confirmation will be paid in full, on or before the date of
confirmation of the Debtors' Plan.
Funding for the implementation of the Plan will be derived from an
investor who agreed to invest $500,000 in exchange for 25%
interest in the real estate and 25% of the ownership interest in
Maple Park.
Pursuant to the Plan, Digital Federal Credit Union and Peter
D'Angelo will receive payments of interest commencing 30 days
after confirmation at the rate of 5% per annum with a balloon to
be paid on the 61st month on account of their secured claims. Mr.
D'Angelo will receive payments of interest commencing on the 61st
month with a balloon payment on the 120th month on account of his
unsecured claim.
Payments to allowed unsecured claims will commence on the 13th
month and be paid 100% over a period of 48 months.
Mr. Tucy will retain a 75% beneficial interest in BKT Realty Trust
and Glen Charlie Realty Trust, and 75% shareholder of Maple Park
Properties, Inc.
A full-text copy of the amended Disclosure Statement is available
for free at http://bankrupt.com/misc/BrockTucy_AmendedDS.pdf
About Brock P. Tucy
East Wareham, Massachusetts-based Brock P. Tucy owns and operates
a recreation park known as Yogi Bear Jelly Stone Park with 332
developed RV sites. Mr. Tucy filed for Chapter 11 protection on
December 16, 2009 (Bankr. D. Mass. Case No. 09-22152). Norman
Novinsky, Esq., at Novinsky & Associates represents the Debtor.
The Company disclosed $18,190,005 in assets and $7,381,151 in
debts as of the Chapter 11 filing.
CARBON RESOURCES: Files List of 9 Largest Unsecured Creditors
-------------------------------------------------------------
Carbon Resources LLC filed with U.S. Bankruptcy Court for the
District of Mexico a list of its nine largest unsecured creditors,
disclosing:
Entity Nature of Claim Claim Amount
------ --------------- ------------
Geo Hunt Consulting
16577 columbine Ln.
Cedaredge, CO 81413 Trade Debt $250,000
Ben Grimes
795 W. Twin Peaks Road
Elmo, UT 84521 Trade Debt $250,000
Western Reserve Coal Company
P.O. Box 954
Sandia Park, NM 87047 Trade Debt $202,000
Rock Logic Trade Debt $2,100
Wisco, LLC Trade Debt $104,000
Internal Revenue Service Taxes $8,000
Carbon County Treasurer Property Taxes $376
Holan and Hart Legal Fees $27,972
Ronald C. Barker
Barker Law Offices Legal Fees $42,000
Sandia Park, New Mexico-based Carbon Resources LLC filed for
Chapter 11 bankruptcy protection on December 10, 2010 (Bankr. N.M.
Case No. 10-16104). M.J. Keefe, Esq., at Gilpin & Keefe, PC,
serves as the Debtor's bankruptcy counsel. The Debtor estimated
its assets at $10 million to $50 million, and debts at $1 million
to $10 million.
CENTRAL KANSAS CRUDE: Wins Court Approval of Liquidation Plan
-------------------------------------------------------------
The Hon. Robert E. Nugent of the U.S. Bankruptcy Court for the
District of Kansas confirmed Central Kansas Crude LLC's Plan of
Liquidation Dated, October 21, 2010.
As reported in the Troubled Company Reporter on November 12, the
Disclosure Statement explaining the Plan provided that the
Debtor's operations have ceased since the sale of all its assets
to Parnon and a majority of the Debtor's assets have been
converted to cash, with this exception:
-- The Debtor has $94,128.95 in an interest bearing account
at Intrust Bank. These funds are the remaining proceeds
from the sale of assets to Parnon.
-- The Debtor has $7,279,532.37 in an interest bearing
account at Emprise Bank. These funds are the proceeds from
the Debtor's settlement with Bank of America on the
Debtor's Sec. 503(b)(9) claim in the SemCrude bankruptcy.
-- The Debtor has or will be awarded shares in the
reorganized SemCrude under SemCrude's Fourth Amended
Disclosure Statement and Plan. The Debtor intends to
liquidate that stock and convert it to cash to be
distributed under the provisions of its Liquidation Plan.
The Debtor does not have any other assets.
According to the Disclosure Statement, the Debtor believes that
$7,373,661 on hand as of October 18, 2010, is sufficient to pay
Kansas and Oklahoma producers all of the money owed for crude they
provided the Debtor in July 2008, fund the settlement of AGV
Corp.'s $94,128 secured claim, and all unsecured, priority
creditors. Any remaining balance of AGV's claim after the
payments will be treated as a general unsecured claim. After
those cash reserves are distributed, any remaining cash, proceeds
from the sale of SemCrude stock, and Chapter 5 avoidance actions
will be used to make a pro rata distribution to the general,
unsecured creditors.
Upon confirmation of the Debtor's Plan, any remaining assets that
have not been liquidated or converted to cash and any causes of
action will be vested with the Liquidating Trustee. Edward
J. Nazar will be appointed the Liquidating Trustee. Mr. Nazar is
currently acting as the Court appointed bankruptcy counsel for the
Debtor.
The secured claim of the Peoples Bank of Pratt, N.A. has been
separately satisfied in the bankruptcy case. The Peoples Bank
will not participate in the distribution under the Plan.
The Debtor filed an omnibus objection against the interest holders
in Class 5. If the objection is granted, the interest holders
claims will be disallowed. The Debtor does not anticipate any
funds to be available to pay the Class 6 equity holders.
A full-text copy of the Disclosure Statement is available for free
at http://bankrupt.com/misc/CENTRALKANSAS_DS.pdf
About Central Kansas
Pratt, Kansas-based Central Kansas Crude LLC filed for Chapter 11
bankruptcy protection (Bankr. D. Kan. Case No. 09-13798) on
November 17, 2009. Edward J. Nazar, Esq., in Wichita, Kansas,
represents the Debtor. The Company disclosed $13,515,357 in
assets and $25,418,311 in liabilities.
CINCINNATI BELL: GAMCO Investors et al. Hold 8.32% Stake
--------------------------------------------------------
Mario J. Gabelli's GAMCO Investors, Inc., and its affiliated funds
disclosed that as of December 20, 2010, they may be deemed to
beneficially own 16,834,705 shares, representing 8.32% of the
common stock of Cincinnati Bell Inc.
Cincinnati Bell Inc., with headquarters in Cincinnati, Ohio,
provides telecommunications products and services to residential
and business customers in Ohio, Kentucky and Indiana.
Cincinnati Bell's balance sheet at Sept. 30, 2010, showed
$2.59 billion in total assets, $3.20 billion in total liabilities,
and a stockholder's deficit of $611.4 million.
* * *
The Company carries a 'B+' corporate credit rating from Standard &
Poor's. S&P said in November 2010 that the rating reflects the
Company's highly leveraged financial risk profile, with
expectations for limited discretionary cash flow after capital
spending, which is currently elevated to expand its data center
business.
The Company has a 'B' Issuer Default Rating, and Stable outlook,
frm Fitch. Fitch said in November 2010 that 'B' IDR for reflects
expectations for relatively high, albeit stable leverage and its
diversified revenue profile. In addition, its wireline and
wireless businesses generate strong free cash flows.
COLD CREEK: Case Summary & Unsecured Creditor
---------------------------------------------
Debtor: Cold Creek Development Company, Limited
3822 Autumn Drive
Huron, OH 44839
Bankruptcy Case No.: 10-38304
Chapter 11 Petition Date: December 21, 2010
Court: United States Bankruptcy Court
Northern District of Ohio (Toledo)
Judge: Mary Ann Whipple
Debtor's Counsel: Jonathan P Blakely, Esq.
WESTON HURD, LLP
The Tower at Erieview
1301 East 9th Street, Suite 1900
Cleveland, OH 44114-1862
Tel: (216) 687-3311
Fax: (216) 621-8369
E-mail: jblakely@westonhurd.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $500,001 to $1,000,000
In its list of 20 largest unsecured creditors, the Company placed
only one entry:
Entity Nature of Claim Claim Amount
------ --------------- ------------
Wayne Rice, Receiver Unknown
304 N. Cleveland-
Massillon Road
Akron, OH 44333
The petition was signed by Joseph F. Yost, managing member.
CONGRESS SAND: Taps Heller Draper as Bankruptcy Counsel
-------------------------------------------------------
The U.S. Bankruptcy Court for the Northern District of Texas
authorized Congress Sand & Gravel, LLC, and Congress Materials,
LLC, to employ Douglas S. Draper and The Law Firm of Heller,
Draper, Hayden, Patrick & Horn, LLC, as the Debtors' bankruptcy
counsel.
To the best of the Debtor's knowledge, Heller Draper is a
"disinterested person" as that term is defined in Section 101(14)
of the Bankruptcy Code.
About Congress Sand
Kerens, Texas-based Congress Sand & Gravel, LLC, filed for Chapter
11 bankruptcy protection (Bankr. N.D. Tex. Case No. 10-37522) on
October 28, 2010, estimating assets and debts at $1 million to
$10 million. Bridgeport, Texas-based Congress Materials, LLC --
dba Green Aggregates and Union Materials, LP -- filed for Chapter
11 bankruptcy protection (Bankr. N.D. Tex. Case No. 10-37526) on
the same day, estimating assets and debts at $10 million to
$50 million. The two cases are jointly administered under the
Congress Sand's case.
Affiliate Green Aggregates, Inc. (Bankr. N.D. Tex. Case No.
07-53439) filed a Chapter 11 petition on December 31, 2007.
CONSPIRACY ENT: Sells $150,000 in Notes & 3.75MM Class A Warrants
-----------------------------------------------------------------
Conspiracy Entertainment Holdings Inc. entered into a subscription
agreement with various entities on December 17, 2010.
Pursuant to the Subscription Agreement, the Company sold the
subscribers to $150,000 principal amount of promissory notes and
issued the Subscribers 3,750,000 Class A Warrants, which equals
one Class A Warrant for each two shares which would be issued upon
the full conversion of the Promissory Notes assuming the full
conversion of the Promissory Notes. Immediately following the
closing, there were 31,288,019 outstanding shares of the Company's
common stock.
The Notes mature two years from the date of issuance and will
accrue interest at the rate of 14%. Upon a default in the payment
of any amounts due under the Notes, the interest rate will be
increased to 18%. Upon the occurrence of an Event of Default, all
principal and interest then remaining unpaid shall be immediately
due and payable. Events of Default include but are not limited
to:
i) the Company's failure to make payments when due,
ii) breaches by the Company of its representations and
warranties
iii) delisting of the Company's common stock from the OTC
Bulletin Board.
Pursuant to the terms of the Notes, the Subscribers have the
right, so long as the Notes are not fully repaid, to convert the
Notes into shares of the Company's common stock at a conversion
price per share that is equal to the lesser of $0.02, or $70% of
the average of the five lowest closing bid prices for the
Company's Common Stock as reported by Bloomberg L.P. for the
Principal Market for the 10 trading days preceding the date the
Subscriber gives the Company notice of conversion, as may be
adjusted. The Notes contain anti-dilution provisions, including
but not limited to if the Company issues shares of its common
stock at less than the then existing conversion price, the
conversion price of the Notes will automatically be reduced to
such lower price.
The Notes and Warrants contain limitations on conversion,
including the limitation that the holder may not convert its Note
to the extent that upon conversion the holder, together with its
affiliates, would own in excess of 4.99% of the Company's
outstanding shares of common stock.
The Notes are secured by a security interest in certain assets of
the Company.
A full-text copy of the subscription agreement is available for
free at http://ResearchArchives.com/t/s?7158
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.
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.
CRAIG CARRIER: Case Summary & 2 Largest Unsecured Creditors
-----------------------------------------------------------
Debtor: Craig Carrier Corp., LLC
201 N. First Street
Doniphan, NE 68832
Bankruptcy Case No.: 10-43798
Chapter 11 Petition Date: December 21, 2010
Court: United States Bankruptcy Court
District of Nebraska (Lincoln Office)
Debtor's Counsel: Robert V. Ginn, Esq.
HUSCH BLACKWELL SANDERS
1620 Dodge Street, Suite 2100
Omaha, NE 68102
Tel: (402) 964-5000
Fax: (402) 964-5050
E-mail: rvgbknotice@huschblackwell.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 two largest unsecured creditors
filed together with the petition is available for free
at http://bankrupt.com/misc/neb10-43798.pdf
The petition was signed by Vonnie White, manager.
CREDIT-BASED ASSET: To Unload Worthless Securities by Yearend
-------------------------------------------------------------
Peg Brickley, writing for Dow Jones' Daily Bankruptcy Review,
reports that Credit-Based Asset Servicing and Securitization LLC
is seeking to abandon or sell the "first-loss" pieces of its
former mortgage-investment business by the end of the year, saying
the tax implications of keeping them after December 31, 2010,
would create a significant burden.
Ms. Brickley reports C-BASS wants to abandon trust securities that
were rendered worthless in the collapse of the housing market, and
is seeking a buyer for securities grouped under the rubric of
"equity investments." She relates C-BASS said the mortgage-
related assets have lost so much value it will cost more than
they're worth to file tax returns for them.
As reported by the Troubled Company Reporter on December 9, 2010,
Bill Rochelle, the bankruptcy columnist for Bloomberg News, said
C-BASS received approval from the bankruptcy court to hold an
auction on January 10, to test whether the $2.4 million offer from
FIG LLC is the best bid for the collateral management business.
Other bids are due December 31. C-BASS originally wanted to hold
the auction on December 14.
About C-BASS
Credit-Based Asset Servicing and Securitization LLC is a
subprime mortgage investor based in New York City. C-Bass is
a joint venture, owned in part by units of mortgage insurers
MGIC Investment Corp. and Radian Group Inc.
C-BASS and seven affiliates sought Chapter 11 protection
(Bankr. S.D.N.Y. Case No. 10-16040) on Nov. 12, 2010. C-BASS
disclosed $23.7 million in assets and $2.16 billion in liabilities
in its Schedules of Assets and Liabilities. The Debtors'
liabilities include $195.8 million of secured debt.
Peter S. Partee, Esq., Richard P. Norton, Esq., Robert A. Rich,
Esq., and Scott Howard Bernstein, Esq., at Hunton & Williams LLP,
represent the Debtors. Donlin, Recano & Company is the claims and
noticing agent.
The affiliates that filed separate Chapter 11 petitions are
C-BASS CBO Holding LLC, C-BASS Credit Corp., C-BASS Investment
Management LLC, NIM I LLC, Pledged Property II LLC, Starfish
Management Group LLC, and Sunfish Management Group LLC.
CROWN MEDIA: Shareholders Elect 14 Individuals as Directors
-----------------------------------------------------------
The annual meeting of stockholders of Crown Media Holdings, Inc.
was held on December 16, 2010. Stockholders approve the election
of 14 individuals as directors.
* William J. Abbott
* Dwight Arn
* Robert C. Bloss
* William Cella
* Glenn Curtis
* Steve Doyal
* Brian E. Gardner
* Herbert Granath
* Donald J. Hall, Jr.
* Irvine O. Hockaday, Jr.
* A. Drue Jennings
* Brad Moore
* Peter A. Lund
* Deanne Stedem
Shareholders also approved the performance-based compensation
payable to the President and Chief Executive Officer and other
executive officers.
About Crown Media
Studio City, Calif.-based Crown Media Holdings, Inc. (NASDAQ:
CRWN) -- http://www.hallmarkchannel.com/-- owns and operates
cable television channels dedicated to high quality, broad appeal,
entertainment programming. The Company currently operates and
distributes Hallmark Channel in both high definition (HD) and
standard definition (SD) to 90 million subscribers in the U.S.
Crown Media also operates a second 24-hour linear channel,
Hallmark Movie Channel, available in both HD and SD, which focuses
on family-friendly movies with a mix of classic theatrical films,
presentations from the acclaimed Hallmark Hall of Fame library,
original Hallmark Channel movies and special events.
KPMG LLP, in Denver, expressed substantial doubt about Crown Media
Holdings, Inc.'s ability to continue as a going concern, following
its 2009 results. The independent auditors noted of the Company's
significant short-term debt obligations.
CRYPTEK INC: Shulman Rogers Ordered to Disgorge Portion of Fees
---------------------------------------------------------------
Judge Stephen S. Mitchell granted the request of Gordon P. Peyton,
the Chapter 7 trustee for Cryptek, Inc. -- joined by
administrative expense claimants Kasimer & Annino, P.C. and Sonex,
Inc. -- to require the law firm of Shulman, Rogers, Gandel, Pordy,
& Ecker, P.A., to disgorge roughly $35,000 of the nearly $163,000
in approved fees and expenses that were paid to the firm -- in
part by the trustee but mostly by drawing down on a retainer --
following conversion of the Debtor's case. Shulman Rogers
represented the Debtor prior to conversion. The trustee asserts
that disgorgement is appropriate because the estate is
administratively insolvent, and disgorgement is necessary to
achieve equality of distribution among the chapter 11
administrative claimants.
"It goes without saying that disgorgement is being directed solely
in order to achieve equality of distribution and is not intended
as an adverse reflection on the quality of the legal services it
provided to the client," Judge Mitchell said.
A copy of the Court's December 21, 2010 Memorandum Opinion is
available at http://is.gd/jh7hqfrom Leagle.com.
The Chapter 7 trustee is represented by:
Robert M. Gants, Esq.
REDMON, PEYTON & BRASWELL, LLP
510 King Street, Suite 301
Alexandria, VA 22314
Telephone: (703) 684-2000
E-mail: rmgants@rpb-law.com
Kasimer & Annino is represented by:
Michael C. Crowley, Esq.
KASIMER & ANNINO, P.C.
7653 Leesburg Pike
Falls Church, VA 22043
Telephone: (703) 893-3914
Facsimile: (703) 893-6944
Shulman Rogers is represented by:
Matthew Marc Moore, Esq.
SHULMAN, ROGERS, GANDAL, PORDY & ECKER
12505 Park Potomac Avenue, Sixth Floor
Potomac, MD 20854
Telephone: (301) 230-6560
Facsimile: (301) 230-2891
E-mail: mmoore@shulmanrogers.com
Cryptek, Inc., doing business as Cryptek Secure Communications,
LLC, filed a voluntary Chapter 11 petition (Bankr. E.D. Va. Case
No. 08-17324) on November 21, 2008. Shulman Rogers served as the
Debtor's counsel. The Debtor obtaind approval to sell
substantially all of its assets on February 23, 2009. Two weeks
later, the Debtor filed a motion to convert its case to Chapter 7,
and an order was entered on March 13, 2009, converting the case.
Richard A. Bartl was initially appointed as trustee but
subsequently resigned, and Gordon P. Peyton has been appointed as
successor trustee.
DELPHI CORP: Court Closes Five Affiliates' Chapter 11 Cases
-----------------------------------------------------------
Judge Robert D. Drain of the U.S. Bankruptcy Court for the
Southern District of New York has signed a final decree and order
closing the Chapter 11 cases of five Delphi Corp. affiliates,
according to a docket entry in the bankruptcy cases of Reorganized
Delphi Corporation, now known as DPH Holdings Corp.,
The Delphi affiliates with closed cases are:
Closing Debtor Case No.
-------------- --------
Delphi Automotive Systems International, Inc. 05-44589
Delphi China LLC 05-44577
Delphi Furukawa Wiring Systems LLC 05-47452
Delphi LLC 05-44615
MobilAria, Inc. 05-47474
According to the docket entry, Judge Drain signed the Closing
Order on December 20, 2010. However, the Closing Order itself is
not available in the Court's public dockets, only the list of the
Closing Debtors.
John Wm. Butler, Jr., Esq., at Skadden, Arps, Slate, Meagher &
Flom LLP, in Chicago, Illinois, has told the Court that the
Reorganized Debtors have completed the process of reconciling all
claims and have no further obligations pending under the Modified
First Amended Joint Plan of Reorganization with respect to the
Chapter 11 cases of the Closing Debtors. All motions, contested
matters and adversary proceedings have been finally resolved with
respect to the Closing Debtors, he said. Indeed, one of the
Closing Debtors, Delphi China LLC, was acquired by Delphi
Automotive LLP through a stock sale, he added.
The entry of a final decree and order in the Closing Debtors'
Chapter 11 cases is appropriate, Mr. Butler said. He argued that
all six factors set forth in the Advisory Committee Note to
Bankruptcy Rule 3022 have been satisfied with respect to each of
the Closing Debtors' reorganization cases, namely:
(a) the Modified Plan was approved on July 30, 2009 pursuant
to a final order of the Bankruptcy Court;
(b) there are no deposits that need to be distributed with
respect to the Closing Debtors;
(c) the property proposed to be transferred pursuant to the
Modified Plan has been transferred with respect to each of
the Closing Debtors, including the stock sale of Delphi
China LLC to Delphi Automotive LLP;
(d) DPH Holdings is managing the assets of the Reorganized
Debtors in accordance with the Modified Plan;
(e) DPH Holdings has commenced distributions under the
Modified Plan and will make the distributions on account
of Allowed Claims set forth in the Modified Plan; and
(f) all motions, contested matters and adversary proceedings
will be finally resolved with respect to each Closing
Debtor prior to entry of the Final Decree and Order.
Likewise, each of the cases of the Closing Debtors has reached
the point of substantial consummation as defined under Section
1102 of the Bankruptcy Code, Mr. Butler added.
Nevertheless, the Chapter 11 cases of DPH Holdings and certain
other Reorganized Debtors will remain open to complete the
administration and implementation of the Modified Plan until a
final decree is entered in those cases, Mr. Butler stated. The
closing of the Closing Debtors' cases thus will not impact the
continued implementation of the Modified Plan, he assured the
Court.
Mr. Butler also said that closing of the Chapter 11 cases of the
Closing Debtors will result in cost savings for the Reorganized
Debtors, as they will no longer need to pay ongoing quarterly fees
for the Closing Debtors.
About Delphi Corp.
Based in Troy, Michigan, Delphi Corporation --
http://www.delphi.com/-- is a global supplier of electronics and
technologies for automotive, commercial vehicle and other market
segments. Delphi operates major technical centers, manufacturing
sites and customer support facilities in 30 countries.
The Company filed for Chapter 11 protection on October 8, 2005
(Bankr. S.D.N.Y. Lead Case No. 05-44481). John Wm. Butler Jr.,
Esq., John K. Lyons, Esq., and Ron E. Meisler, Esq., at Skadden,
Arps, Slate, Meagher & Flom LLP, represented the Debtors in their
restructuring efforts. Robert J. Rosenberg, Esq., Mitchell A.
Seider, Esq., and Mark A. Broude, Esq., at Latham & Watkins LLP,
represented the Official Committee of Unsecured Creditors. As of
June 30, 2008, the Debtors' balance sheet showed US$9,162,000,000
in total assets and US$23,742,000,000 in total debts.
The Court confirmed Delphi's plan on January 25, 2008. The Plan
was not consummated after a group led by Appaloosa Management,
L.P., backed out from their proposal to provide US$2,550,000,000
in equity financing to Delphi. At the end of July 2009, Delphi
obtained confirmation of a revised plan, build upon a sale of the
assets to a entity formed by some of the lenders who provided
$4 billion of debtor-in-possession financing, and General Motors
Company.
On October 6, 2009, Delphi's Chapter 11 plan of reorganization
became effective. A Master Disposition Agreement executed among
Delphi Corporation, Motors Liquidation Company, General Motors
Company, GM Components Holdings LLC, and DIP Holdco 3, LLC,
divides Delphi's business among three separate parties -- DPH
Holdings LLC, GM Components, and DIP Holdco 3.
Delphi emerged from Chapter 11 as DPH Holdings. DPH Holdings will
remain responsible for the post-Effective Date administration and
eventual closing of the Chapter 11 cases as well as the
disposition of certain retained assets and payment of certain
retained liabilities as provided under the Modified Plan.
Bankruptcy Creditors' Service, Inc., publishes Delphi Bankruptcy
News. The newsletter tracks the Chapter 11 proceedings of Delphi
Corp. and its debtor-affiliates. (http://bankrupt.com/newsstand/
or 215/945-7000)
DELPHI CORP: Former CEO Says GM Sought Huge Payments for Warranty
-----------------------------------------------------------------
Greg Gardner of The Detroit Free Press reported that J.T.
Battenberg III, Delphi Corp.'s former chief executive officer,
told a federal court earlier this month that General Motors
Corporation sought huge payments for warranty claims from Delphi
after the automaker spun off the parts supplier.
Mr. Battenberg made the statement when he took the stand at the
December 1, 2010 trial presided by Judge Avern Cohn of the U.S.
District Court for the Eastern District of Michigan in connection
to a civil securities lawsuit initiated by the U.S. Securities
and Exchange Commission against Mr. Battenberg and former Delphi
accounting officer Paul Free, The Free Press related. A
10-member jury will decide on the case, according to the report.
Mr. Battenberg said GM leaders told Delphi that it owed as much
as $800 million to cover the cost of warranty claims that GM said
were traceable to faulty Delphi parts, the report related. "We
were shocked. We thought it couldn't happen," The Free Press
quoted Mr. Battenberg as saying during the trial.
The SEC lawsuit is based primarily on Mr. Battenberg's role in
the accounting of a $237 million payment Delphi made to GM in
2000. According to the SEC, Delphi paid GM $237 million to
resolve the warranty dispute, but accounted for $202 million of
that payment as an adjustment to the suppliers' pension costs
instead of an expense that would have reduced its profit, The
Free Press related.
Mr. Battenberg also described at the trial how Delphi's
relationship with GM deteriorated over time, The Free Press
noted. "They started taking us off the bid list for new
business. They disinvited us from trade shows," according to Mr.
Battenberg. "Most importantly, we were losing revenue," Mr.
Battenberg told the jury.
The Free Press said other issues also drove the two companies
apart. According to the report, Delphi created a $53 million
reserve to cover warranty claims that later increased to
$112 million. But GM demanded more, the report stated.
Mr. Battenberg related that in July 2000, he called then GM CEO
Jack Smith to discuss "abnormal behavior" by GM's purchasing
unit, The Free Press noted. Delphi eventually settled the
warranty dispute after a series of meetings between the
companies' executives to pay GM $237 million, the report related.
When asked by his counsel whether he know how much of that
payment actually went to dealers for warranty-related repairs,
Mr. Battenberg said, "They had spent very little." Mr.
Battenberg continued, "Usually our experience had been that we
paid as we go, but this time, they wanted money upfront. That
was different," the report added.
Mr. Battenberg Doesn't Recall Lawyer's Warning
Mike Colias of Automotive News on December 2, 2010, related that
Mr. Battenberg said he does not remember receiving a voicemail
from the company's top lawyer in 2000.
Logan Robinson earlier testified that he left a voicemail warning
Mr. Battenberg against covering up details of the $237 million
payment that Delphi was about to make to GM, Automotive News
noted.
"I think I would have remembered," Mr. Battenberg said at the
trial, adding that he typically received as many as 200
voicemails a week at that time, Automotive News said.
The report noted that on his second day on the witness stand, Mr.
Battenberg reiterated that he has no role in deciding how to book
the $237 million payment and ultimately followed the advice of
lawyers that the accounting was sound. When questioned by SEC
attorneys, Mr. Battenberg recognized that he knew that recording
most of the $237 million as pension-related expenses rather than
as warranty expenses "would be an advantage to Delphi,"
Automotive News stated.
Mr. Battenberg further acknowledged that the pension matter was
not brought up in any of his meetings with GM officials at that
time, Automotive News cited. Instead, those discussions centered
on the warranty claims that GM was demanding, as well as Delphi's
gripes about declining business from GM, the report added.
Automotive News further relayed that Mr. Battenberg acknowledged
that he reviewed a document placing Delphi's exposure for
warranty claims at $240 million to $248 million. Mr. Battenberg
testified that was the only dollar amount Delphi and GM agreed on
before reaching a settlement, even though the final agreement
said it resolved the pension issue too.
Jan Folena, Esq., counsel to the SEC, asked Mr. Battenberg about
his signing of a restatement of Delphi's 2000 financials in 2005
that said the $237 million payment should have been recorded as a
warranty payment, Automotive News noted. Mr. Battenberg
responded that even though he thought it was right in 2000, he
relied on the advice of a new team of attorneys and financial
staffers in agreeing to restate it five years later, the report
pointed out.
"I took the advice of the experts and signed the restatement in
the best interest of the company," Mr. Battenberg was quoted by
Automotive News at the trial as saying.
Delphi's 2000 Outlook Probed
At the December 3 trial hearing, the SEC focused on Delphi's
outlook in September 2000, The Free Press stated in a separate
report.
Mr. Folena showed jurors a September 14, 2010 internal Delphi
document that the company expected to earn $112 million for that
quarter, according to The Free Press. The same document noted
that Wall Street analysts expected a profit of $148 million.
Delphi subsequently reported a $148 million profit, despite the
settlement with GM that led to the $237 million payment,
according to a testimony in the trial, The Free Press noted. The
report further relayed that Delphi restated that quarter's profit
four years later after the SEC began an investigation.
About Delphi Corp.
Based in Troy, Michigan, Delphi Corporation --
http://www.delphi.com/-- is a global supplier of electronics and
technologies for automotive, commercial vehicle and other market
segments. Delphi operates major technical centers, manufacturing
sites and customer support facilities in 30 countries.
The Company filed for Chapter 11 protection on October 8, 2005
(Bankr. S.D.N.Y. Lead Case No. 05-44481). John Wm. Butler Jr.,
Esq., John K. Lyons, Esq., and Ron E. Meisler, Esq., at Skadden,
Arps, Slate, Meagher & Flom LLP, represented the Debtors in their
restructuring efforts. Robert J. Rosenberg, Esq., Mitchell A.
Seider, Esq., and Mark A. Broude, Esq., at Latham & Watkins LLP,
represented the Official Committee of Unsecured Creditors. As of
June 30, 2008, the Debtors' balance sheet showed US$9,162,000,000
in total assets and US$23,742,000,000 in total debts.
The Court confirmed Delphi's plan on January 25, 2008. The Plan
was not consummated after a group led by Appaloosa Management,
L.P., backed out from their proposal to provide US$2,550,000,000
in equity financing to Delphi. At the end of July 2009, Delphi
obtained confirmation of a revised plan, build upon a sale of the
assets to a entity formed by some of the lenders who provided
$4 billion of debtor-in-possession financing, and General Motors
Company.
On October 6, 2009, Delphi Corp.'s Chapter 11 plan of
reorganization became effective. A Master Disposition Agreement
executed among Delphi Corporation, Motors Liquidation Company,
General Motors Company, GM Components Holdings LLC, and DIP Holdco
3, LLC, divides Delphi's business among three separate parties --
DPH Holdings LLC, GM Components, and DIP Holdco 3.
Delphi emerged from Chapter 11 as DPH Holdings. DPH Holdings will
remain responsible for the post-Effective Date administration and
eventual closing of the Chapter 11 cases as well as the
disposition of certain retained assets and payment of certain
retained liabilities as provided under the Modified Plan.
Bankruptcy Creditors' Service, Inc., publishes Delphi Bankruptcy
News. The newsletter tracks the Chapter 11 proceedings of Delphi
Corp. and its debtor-affiliates. (http://bankrupt.com/newsstand/
or 215/945-7000)
DELPHI CORP: Retirees' Health Care Access Extended to 2012
----------------------------------------------------------
The U.S. House of Representatives approved a measure that will
enable salaried retirees of Delphi Corp. to access health care
benefits until 2012, David Shepardson of Detroit News reported.
The extended Health Coverage Tax Credit pays 80% of health
premiums for Delphi retirees under the Pension Benefit Guaranty
Corp., Detroit News related. Retirees over 55 years old
receiving pension benefits from the Pension Benefit Guaranty
Corp. are eligible to receive the HCTC, the report noted.
The measure expanded the credit to pay 80% of qualified health
plan premiums -- from 65% previously, Detroit News explained.
Without the Congress' action, the credit would have been reduced
to 65% on December 31, 2010, Detroit News noted.
The credit will help other older workers who are buying their own
health insurance, Mr. Shepardson noted.
According to the report, the measure is a part of an omnibus bill
to be decided on by the Senate. U.S. Representative Dale Kildee
has actively pushed for the extension of the credit in the Lower
House, the report added.
In conjunction, the Delphi Salaried Retirees Association related
that the plans offered by the DSRA Voluntary Employee Beneficiary
Association Trust appear to continue to be qualified for the HCTC
in 2011 as a plan established after the bankruptcy of Delphi in
lieu of Consolidated Omnibus Budget Reconciliation Act. The
Official Committee of Eligible Salaried Retirees intended the
VEBA to provide a benefit in lieu of COBRA consistent with prior
private letter rulings of the Internal Revenue Service.
In other news, U.S. Senator Sherrod Brown called on General
Motors Company to pay the pension fund for Delphi retirees,
according to a public statement dated December 3, 2010. Mr.
Brown's statement comes as GM made a $4 billion contribution to
its hourly and salaried pension plans.
"As General Motors continues to reap financial benefits from its
restructuring and successful IPO, they must do their duty by the
Delphi retirees, and I will keep fighting to make sure that these
retirees get the benefits they have earned and deserve," Mr.
Brown said.
About Delphi Corp.
Based in Troy, Michigan, Delphi Corporation --
http://www.delphi.com/-- is a global supplier of electronics and
technologies for automotive, commercial vehicle and other market
segments. Delphi operates major technical centers, manufacturing
sites and customer support facilities in 30 countries.
The Company filed for Chapter 11 protection on October 8, 2005
(Bankr. S.D.N.Y. Lead Case No. 05-44481). John Wm. Butler Jr.,
Esq., John K. Lyons, Esq., and Ron E. Meisler, Esq., at Skadden,
Arps, Slate, Meagher & Flom LLP, represented the Debtors in their
restructuring efforts. Robert J. Rosenberg, Esq., Mitchell A.
Seider, Esq., and Mark A. Broude, Esq., at Latham & Watkins LLP,
represented the Official Committee of Unsecured Creditors. As of
June 30, 2008, the Debtors' balance sheet showed US$9,162,000,000
in total assets and US$23,742,000,000 in total debts.
The Court confirmed Delphi's plan on January 25, 2008. The Plan
was not consummated after a group led by Appaloosa Management,
L.P., backed out from their proposal to provide US$2,550,000,000
in equity financing to Delphi. At the end of July 2009, Delphi
obtained confirmation of a revised plan, build upon a sale of the
assets to a entity formed by some of the lenders who provided
$4 billion of debtor-in-possession financing, and General Motors
Company.
On October 6, 2009, Delphi Corp.'s Chapter 11 plan of
reorganization became effective. A Master Disposition Agreement
executed among Delphi Corporation, Motors Liquidation Company,
General Motors Company, GM Components Holdings LLC, and DIP Holdco
3, LLC, divides Delphi's business among three separate parties --
DPH Holdings LLC, GM Components, and DIP Holdco 3.
Delphi emerged from Chapter 11 as DPH Holdings. DPH Holdings will
remain responsible for the post-Effective Date administration and
eventual closing of the Chapter 11 cases as well as the
disposition of certain retained assets and payment of certain
retained liabilities as provided under the Modified Plan.
Bankruptcy Creditors' Service, Inc., publishes Delphi Bankruptcy
News. The newsletter tracks the Chapter 11 proceedings of Delphi
Corp. and its debtor-affiliates. (http://bankrupt.com/newsstand/
or 215/945-7000)
DELTA PETROLEUM: Tracina Amends Pledge Accord & Promissory Note
---------------------------------------------------------------
Kirk Kerkorian's Tracinda Corp. entered into a First Amendment to
Pledge Agreement and Second Amendment to Promissory Note with
Roger A. Parker, dated December 16, 2010. Pursuant to the
Amendment, Tracinda has released from pledge the shares of Delta
Petroleum Common Stock previously pledged pursuant to the Pledge
Agreement.
A copy of the First Amendment is available at no charge
at http://is.gd/ji8YE
Tracinda Corp. disclosed that it may be deemed to beneficially own
93,797,701 shares or roughly 32.9% of the Company's common stock.
About Delta Petroleum
Delta Petroleum Corporation (NASDAQ Global Market: DPTR)
-- http://www.deltapetro.com/-- is an oil and gas exploration and
development company based in Denver, Colorado. The Company's core
areas of operations are the Rocky Mountain and Gulf Coast Regions,
which comprise the majority of its proved reserves, production and
long-term growth prospects.
* * *
As reported in the Troubled Company Reporter on March 15, 2010,
KPMG LLP, in Denver, expressed substantial doubt about the
Company's ability to continue as a going concern after auditing
the Company's financial statements for the year ended December 31,
2009. The independent auditors noted that of the Company's
ongoing losses and working capital deficiency, and that in
addition, outstanding borrowings under the Company's credit
facility are due January 15, 2011.
In July 2010, Standard & Poor's Ratings Services revised its
outlook on Delta Petroleum Corp. to negative from developing. At
the same time, S&P affirmed its ratings on the company, including
the 'CCC' corporate credit rating.
According to the Troubled Company Reporter on Sept. 14, 2010,
Standard & Poor's Ratings Services revised its recovery rating on
Delta Petroleum Corp.'s unsecured debt to '4' from '3', indicating
S&P's expectation for average recovery in the range of 30% to 50%
in the event of default. At the same time, S&P affirmed its 'CCC'
issue-level rating on this debt (the same as the corporate credit
rating).
DIABETES AMERICA: Files for Chapter 11 Protection in Texas
----------------------------------------------------------
Diabetes America, Inc. filed for bankruptcy protection in Houston.
NetDockets reports that the company's clinics have generated
average monthly revenues of almost $1.3 million to date in 2010.
According to the report, the company blamed the bankruptcy filing
on "several financial set-backs, the impact of which still
continues to strain the Debtor's cash flow." The report relates
that these financial problems include long-term lease commitments,
including one for a clinic location that the company has failed to
open, and an inability to adjust operating expenses at
underperforming centers.
The company also suffered from billing issues with Medicare,
Medicaid, and Aetna, the report notes.
NetDockets says that the company filed for bankruptcy protection
in hopes of effectuating a plan developed with the assistance of
Healthcare Markets Group intended to "restructure its obligations,
improve its revenue, discontinue underperforming operations and
continue as a going concern."
Diabetes America operates a network of 17 centrally-managed
medical clinics that provide comprehensive outpatient medical
care, primarily to patients with Type 1, Type 2 and Gestational
Diabetes. The company's clinics are located in Texas and Houston
and generate 51,000 patient visits per year.
DRYSHIPS INC: Closes $500MM Offering of Ocean Rig Common Stock
--------------------------------------------------------------
DryShips Inc. has closed its offering -- by way of a private
placement of shares -- of Ocean Rig's common stock with total
gross proceeds of $500 million. The offering was made to
professional investors and eligible counterparties in Norway, to
non-United States persons in reliance on Regulation S under the
Securities Act of 1933, as amended and in a concurrent private
placement in the United States only to qualified institutional
buyers pursuant to Rule 144A under the Securities Act.
The net proceeds of the offering are expected to be used to
finance the construction costs of the ultra deepwater newbuilding
drillships under construction at Samsung, exercise options to
build further ultra deepwater drillships and general corporate
purposes. Following this transaction DryShips Inc. owns
approximately 78% of Ocean Rig UDW Inc.
The Shares have not been registered under the Securities Act or
the securities laws of any other jurisdiction and may not be
offered or sold in the United States or to or for the benefit of
U.S. persons unless so registered except pursuant to an exemption
from, or in a transaction not subject to, the registration
requirements of the Securities Act and applicable securities laws
in other jurisdictions.
The joint lead managers for this transaction were DnB Nor Markets,
Fearnley Fonds ASA and Pareto Securities AS.
About DryShips Inc.
Based in Greece, DryShips Inc. -- http://www.dryships.com/--
-- owns and operates drybulk carriers and offshore oil
deep water drilling units that operate worldwide. As of
September 10, 2010, DryShips owns a fleet of 40 drybulk carriers
(including newbuildings), comprising 7 Capesize, 31 Panamax and 2
Supramax, with a combined deadweight tonnage of over 3.6 million
tons and 6 offshore oil deep water drilling units, comprising of 2
ultra deep water semisubmersible drilling rigs and 4 ultra deep
water newbuilding drillships.
DryShips's common stock is listed on the NASDAQ Global Select
Market where it trades under the symbol "DRYS".
The Company's balance sheet at Sept. 30, 2010, showed
$5.80 million in total assets, $1.90 million in total current
liabilities, $1.10 million in total non current liabilities, and
stockholders' equity of $2.80 million.
On November 25, 2010, DryShips Inc. entered into a waiver letter
for its $230.0 million credit facility dated September 10, 2007,
as amended, extending the waiver of certain covenants through
December 31, 2010.
DUKE & KING: Must Sell Outlets by Yearend Under Burger King Deal
----------------------------------------------------------------
NetDockets reports that an agreement between Duke & King
Acquisition Corp. and its affiliated entities, and Duke & King
Acquisition Corp. requires a sale of 52 of the companies'
locations by December 30, 2010. If the sale is not completed by
that date, the companies' rights under their Burger King franchise
agreements would terminate with respect to those 52 locations.
Duke & King et al. were sued in 2010 for breach of obligations
under their franchise agreements with Burger King. The agreement
settles that litigation.
About Duke and King
Burnsville, Minnesota-based Duke and King Acquisition Corp., dba
Burger King, operates 92 Burger King franchises in Minnesota,
Missouri, Illinois, Wisconsin, Iowa and Kansas. The Company was
formed in November 2006 to acquire 88 Burger King franchise
restaurants from The Nath Companies.
The Company and four affiliates filed for Chapter 11 bankruptcy
protection (Bankr. D. Minn. Case No. 10-38652) on December 4,
2010. Clinton E. Cutler, Esq., and Douglas W. Kassebaum, Esq., at
Fredrikson & Byron, P.A., serve as the Debtor's bankruptcy
counsel. The Debtor estimated its assets and debts at $10 million
to $50 million.
Affiliates Duke and King Missouri Holdings, Inc. (Bankr. D. Minn.
Case No. 10-38654), Duke and King Missouri, LLC (Bankr. D. Minn.
Case No. 10-38653), Duke and King Real Estate, LLC (Bankr. D.
Minn. Case No. 10-38655), and DK Florida Holdings, Inc. (Bankr. D.
Minn. Case No. 10-3856), filed separate Chapter 11 petitions on
December 4, 2010.
The cases are jointly administered under the Duke and King
Acquisition Corp. case.
According to NetDockets, the companies' primary secured financing
is provided by Bank of America and the outstanding obligations
were approximately $11 million as of December 1, 2010.
EASTERN STATES PUMP: Voluntary Chapter 11 Case Summary
------------------------------------------------------
Debtor: Eastern State's Pump & Equipment, Inc.
aka Pipe Layers Utility & Construction
aka Felco Equipment Leasing
2182 Route 75
Kenova, WV 25530
Bankruptcy Case No.: 10-31007
Chapter 11 Petition Date: December 21, 2010
Court: United States Bankruptcy Court
Southern District of West Virginia (Huntington)
Judge: Ronald G. Pearson
Debtor's Counsel: Mitchell Lee Klein, Esq.
KLEIN LAW OFFICE
3566 Teays Valley Road
Hurricane, WV 25526
Tel: (304) 562-7111
Fax: (304) 562-7115
E-mail: judy@kleinhall.com
Estimated Assets: $500,001 to $1,000,000
Estimated Debts: $1,000,001 to $10,000,000
The Debtor did not file a list of its largest unsecured creditors
together with its petition.
The petition was signed by Thomas G. Fellure, president.
ECOLOGIX RESOURCE: Taps Michael Handelman as Chief Fin'l Officer
----------------------------------------------------------------
Ecologix Resource Group Inc. on December 3, 2010, entered into an
agreement with Michael Handelman to act as its Chief Financial
officer as an independent contractor. The agreement provides that
Mr. Handelman will be paid $5,000 per month of which $2,000 per
month will be deferred until April 2011. Mr. Handelman will not
devote his full time to the Company and may perform other services
for other entities. The agreement with Mr. Handelman may be
terminated by either him or the Company upon thirty days written
notice.
Mr. Handelman has more than 28 years of financial management
experience and has provided services to Oxis International Inc. as
Chief Financial Officer since March 1, 2010 and from August 2009
as a financial management consultant. Before joining Oxis, he
served from November 2004 to July 2009 as Chief Financial Officer
of TechnoConcepts, Inc., a developing technology and manufacturing
company.
Prior to that, Mr. Handelman served from October 2002 to October
2004 as Chief Financial Officer of Interglobal Waste Management,
Inc., a California start-up manufacturing company, and from July
1999 to September 2002 as Vice President and Chief Financial
Officer of Janex International, a children's toy manufacturer.
Mr. Handelman was Chief Financial Officer from 1993 to 1996 of the
Los Angeles Kings, a $5 million National Hockey League franchise.
Mr. Handelman is a certified public accountant and holds a degree
in accounting from the City University of New York.
Beverly Hills, Calif.-based Ecologix Resource is a natural
resource company focused on the harvesting and marketing of high
quality timber while pursuing the production of alternative energy
solutions. The Company manages tropical hardwood forest
concessions in the Republic of Cameroon in Western Africa.
The Company was incorporated under the laws of the State of
Delaware on November 7, 2007. The Company was formerly known as
Battery Control Corp. and changed its name to Ecologix Resource
Group, Inc. on July 14, 2009. In 2009, the Company acquired its
first concession in Cameroon and discontinued the business of
Battery Control Corp.
Seligson & Giannattasio, LLP, in White Plains, N.Y., expressed
substantial doubt about Ecologix Resource Group, Inc.'s ability to
continue as a going concern, following the Company's 2009 results.
The independent auditors noted that the Company has incurred
significant recurring losses and that the realization of a major
portion of its assets is dependent upon its ability to meet its
future financing needs and the success of its future operations.
EMISPHERE TECH: To Develop Drug for Novo Nordisk in $57.5MM Deal
----------------------------------------------------------------
Emisphere Technologies Inc. and Novo Nordisk A/S have entered into
an exclusive Development and License Agreement to develop and
commercialize oral formulations of Novo Nordisk's insulins, which
have the potential of treating diabetes, using Emisphere's Eligen
Technology. This is the second license agreement between the two
companies. The first agreement, for the development of oral
formulations of GLP-1 receptor agonists, was signed in June 2008,
with a potential drug currently in a Phase I clinical trial.
The Insulin agreement includes $57.5 million in potential product
development and sales milestone payments to Emisphere, of which
$5 million will be payable upon signing, as well as royalties on
sales. Further financial details of the agreement were not made
public.
"This is an encouraging agreement on a promising technology for
oral administration of proteins. We are delighted to continue
working with Emisphere and their Eligen Technology. It fits very
well with Novo Nordisk's strategy within diabetes research", said
Peter Kurtzhals, Senior Vice President, Diabetes Research Unit at
Novo Nordisk.
"This extended partnership with Novo Nordisk is important for
Emisphere for several reasons, said Michael V. Novinski, President
and Chief Executive Officer of Emisphere. To date, our
collaboration with Novo Nordisk has been productive, and today's
agreement has the potential to offer significant new solutions to
millions of people with diabetes worldwide. Finally, it also
serves to further validate our Eligen Technology."
Emisphere's broad-based drug delivery technology platform, known
as the Eligen Technology, uses proprietary, synthetic chemical
compounds, known as Emisphere delivery agents, sometimes called
carriers. Emisphere's Eligen Technology makes it possible to
deliver a therapeutic molecule without altering its chemical form
or biological integrity.
About Emisphere Technologies
Based in Cedar Knolls, New Jersey, Emisphere Technologies, Inc.
(OTC BB: EMIS) -- http://www.emisphere.com/-- is a
biopharmaceutical company that focuses on a unique and improved
delivery of pharmaceutical compounds and nutritional supplements
using its Eligen(R) Technology. The Eligen(R) Technology can be
applied to the oral route of administration as well other delivery
pathways, such as buccal, rectal, inhalation, intra-vaginal or
transdermal.
Since its inception in 1986, Emisphere has generated significant
losses from operations. Emisphere anticipates it will continue to
generate significant losses from operations for the foreseeable
future, and that its business will require substantial additional
investment that it has not yet secured.
In its March 25, 2010 audit report on the Company's financial
statements for the year ended December 31, 2009, McGladrey &
Pullen, LLP, in New York, said there is substantial doubt about
the Company's ability to continue as a going concern. The audit
reports prepared by the Company's independent registered public
accounting firms relating to its financial statements for the
years ended December 31, 2007 and 2008, also included an
explanatory paragraph expressing substantial doubt about the
Company's ability to continue as a going concern.
EMMIS COMM: Shareholders Elect Smulyan & Nathanson as Directors
---------------------------------------------------------------
Jeffrey H. Smulyan and Greg A. Nathanson have been elected to the
board of directors at the annual meeting of shareholders of Emmis
Communications Corporation held on December 17, 2010.
Shareholders also approved the Emmis Communications Corporation
2010 Equity Compensation Plan, and ratified the selection of Ernst
& Young LLP as the Company's independent registered public
accountants for the fiscal year ending February 28, 2011.
In May 2010, Emmis signed a definitive merger agreement which will
result in Emmis being taken private by JS Acquisition, LLC, a
company formed by Chairman and CEO, Jeffrey H. Smulyan. The
financing for the transaction was to be provided by an affiliate
of Alden Global Capital, a private asset management company with
more than $3 billion under management. The going private
transaction was to be effectuated through a cash tender offer for
Emmis' Class A Common Stock at $2.40 per Share, an exchange offer
of 12% Senior Subordinated Notes due 2017 for its Preferred Stock,
amendments to its Articles affecting the Preferred Stock and a
back-end merger.
On September 9, 2010, the offer was effectively terminated after
failing to obtain the required vote from Emmis' shareholders.
About Emmis
Headquartered in Indianapolis, Indiana, Emmis Communications
Corporation -- http://www.emmis.com/-- owns and operates radio
stations and magazine publications in the U.S. and in Europe.
At February 28, 2010, the Company had $498,168,000 in total
assets; $487,246,000 in total liabilities and $140,459,000 in
Series A Cumulative Convertible Preferred Stock; and a
shareholders' deficit of $178,959,000. At February 28, 2010, the
Company had non-controlling interests of $49,422,000 and total
deficit of $129,537,000.
As of April 15, 2010, the Company had not paid the Preferred Stock
dividend for six consecutive quarterly periods.
* * *
In April 2009, Moody's cut its corporate family rating on the
Company to 'Caa2'.
In May 2009, S&P raised its corporate credit rating on the Company
to 'CCC+'. In June, S&P withdrew the 'CCC+' Corp. Credit Rating
at the Company's request.
Moody's Investors Service affirmed the Caa2 Corporate Family
Rating and Caa3 Probability of Default rating for Emmis
Communications Corporation, as well as its SGL-4 speculative grade
liquidity rating. Operating performance improved with the
economic recovery, but absent debt reduction with proceeds from an
asset sale or equity infusion Emmis will likely breach its
leverage covenant when the covenant suspension period ends for the
quarter ending November 30, 2011, in Moody's opinion.
EMPIRE RESORTS: CFO Pitts Does Not Own Any Securities
-----------------------------------------------------
Laurette Pitts, chief financial officer at Empire Resorts Inc.,
disclosed in a Form 3 filing with the Securities and Exhange
Commission on December 15, 2010, that she does not own any
securities of the company.
About Empire Resorts
Based in Monticello, New York, Empire Resorts, Inc. (NASDAQ: NYNY)
-- http://www.empireresorts.com/-- owns and operates Monticello
Casino & Raceway, a video gaming machine and harness racing track
and casino located in Monticello, New York, 90 miles northwest of
New York City.
The Company's balance sheet at Sept. 30, 2010, showed
$74.91 million in total assets, $63.20 million in total
liabilities, and stockholders' equity of $11.71 million.
Auditor Friedman LLP, in New York, after auditing the Company's
2009 results, said Empire Resorts' ability to continue as a going
concern depends on the Company's ability to fulfill its
obligations with respect to its $65 million of 5-1/2% senior
convertible notes. Friedman also noted of the Company's
continuing net losses and negative cash flows from operating
activities.
FPD LLC: Court Approves Sale of Anderson Pointe to CP Investments
-----------------------------------------------------------------
As reported in the Troubled Company Reporter on December 20, 2010,
the Hon. Paul Mannes of the U.S. Bankruptcy Court for the District
of Maryland authorized FPD, LLC, et al., to auction Tidewater
Land, LLC's residential home development subdivision project named
Anderson Pointe located in Raleigh, Wake County, North Carolina.
On December 21, 2010, the Bankruptcy Court approved the sale, free
and clear of all liens and encumbrances, of the Anderson Pointe
Property to CP Investments, who submitted the the highest and best
offer for the Property, for $435,000. Closing on the sale of the
Property will take place within two weeks from the date of the
entry of the sale order, or by January 4, 2010.
At closing, all proceeds of the sale of the Property, to the
extent of the full amount of SunTrust Bank, Inc.'s lien on the
proceeds, including SunTrust's legal fees, will be made
immediately payable to SunTrust.
About FPD
Prince Frederick, Maryland-based FPD, LLC, filed for Chapter 11
bankruptcy protection on September 3, 2010 (Bankr. D. Md. Case No.
10-30424). G. David Dean, II, Esq., and Irving Edward Walker,
Esq., at Cole Schotz Meisel Forman & Leonard P.A., assist the
Debtor in its restructuring effort. The Debtor estimated its
assets and debts at $1 million to $10 million.
Affiliates Acorn Land, LLC (Bankr. D. Md. Case No. 10-30437),
Breezewood Homes, LLC (Bankr. D. Md. Case No. 10-30441), First
Development Group, LLC (Bankr. D. Md. Case No. 10-30443), MD
Homes, LLC (Bankr. D. Md. Case No. 10-30444), NC Homes, LLC
(Bankr. D. Md. Case No. 10-30445), and Tidewater Land, LLC (Bankr.
D. Md. Case No. 10-30446) filed separate Chapter 11 petitions in
September 2010.
Acorn Land, Breezewood Homes, and MD Homes estimated their assets
and debts at $1 million to $10 million each. First Development
estimated its assets and debts at $10 million to $50 million.
The Debtors' bankruptcy cases are jointly administered.
FX LUXURY: 3rd Amended Reorganization Plan Declared Effective
-------------------------------------------------------------
FX Luxury Las Vegas I LLC's third amended plan of reorganization
has been declard effective as of December 15, 2010.
The Troubled Company Reporter on November 22, 2010, reported that
the Court confirmed the Debtor's Plan. Pursuant to the Plan, FX
Real Estate and Entertainment Inc. will no longer have any
ownership interest in the Debtor or the Las Vegas property when
the Plan becomes effective.
Under the Plan, the reorganized Debtor will continue to own the
Las Vegas property, subject to a new first mortgage loan from the
existing first lien lenders, and the Debtor will be wholly-owned
by a newly organized limited liability company. The second lien
lenders will own the equity of the Debtor's Parent in the
proportion they subscribe for their share of the Debtor's Parent's
new equity and make a capital contribution in the pro rata amount
of the Total Capital Contribution accordingly. The new first
mortgage loan will secure two notes, a $188 million Class A note
with interest at the rate of 3.95% per annum, and a $71 million
Class B note with interest at the rate of 2% per annum. All of
the interest payments on the Class B note amortize the principal
on a dollar-for-dollar basis. Both notes mature in six years,
subject to three one-year extension rights under certain
circumstances. The first lien lenders will also have a contingent
profits interest in the Debtor's Parent equal to 4% of profits
until the second lien lenders have received the amount of their
bankruptcy claim and 10% thereafter.
The second lien lenders are entitled under the Plan to subscribe
for 94% of the new equity in the Debtor's Parent by contributing
their pro rata share of the Total Capital Contribution and
agreeing to guarantee three months of interest payments. They
also have contingent rights to subscribe for additional equity in
the Debtor's Parent, based on increased future valuation. The
total capital contribution of approximately $1.75 million is to be
used for an interest reserve and an amount to reimburse the second
lien lenders and their counsel for costs and expenses incurred in
connection with the bankruptcy proceeding. Each subscribing
second lien lender is also subject to its share of a potential
$5 million capital call if needed in connection with property
operations.
The Company's subsidiary FX Luxury, LLC, as the original equity
owner of the Debtor, was entitled under the Plan to subscribe for
up to 6% of the equity in the Debtor's Parent by contributing a
ratable share of the Total Capital Contribution. While FX Luxury
approved the Plan, it did not subscribe for any equity in the
Debtor's Parent. As a result of approving the Plan, the Company
is potentially entitled to the Class 6 Right, which would enable
it to purchase, within six years, up to 5% of the equity of the
Debtor's parent at the date of exercise, at a purchase price equal
to $450 million minus the first lien indebtedness, divided by the
number of equity units outstanding on the date of exercise.
Therefore, upon the effective date of the Plan, the Company will
no longer have any ownership interest in the Debtor or the Las
Vegas property.
All of the trade creditors and all administrative claims are to be
satisfied in the bankruptcy.
As part of the Plan, the Las Vegas Subsidiary and parties to the
bankruptcy will receive releases -- except for fraud and gross
misconduct -- when the Plan becomes effective.
A full-text copy of the Third Amended Plan is available for free
at http://ResearchArchives.com/t/s?6f18
About FX Luxury
New York-based FX Luxury Las Vegas I, LLC, fka Metroflag BP, LLC,
owns approximately 17.72 contiguous acres of real property located
at the southeast corner of Las Vegas Boulevard and Harmon Avenue
in Las Vegas, Nevada, which secures mortgage loans in the
aggregate principal amount of $454 million as of April 21, 2010.
FX Luxury is the remaining Las Vegas subsidiary of FX Real Estate
and Entertainment Inc.
The Company filed for Chapter 11 bankruptcy protection on
April 21, 2010 (Bankr. D. Nev. Case No. 10-17015). Deanna L.
Forbush, Esq., at Fox Rothschild, LLP, serves as bankruptcy
counsel to the Debtor. Greenberg Traurig, LLP, is the Company's
special counsel. Sierra Consulting Group, LLC, is the Company's
financial advisor.
The Company disclosed $139,636,791 in assets and $492,568,036 in
debts at the time of the filing.
GENERAL GROWTH: CK Mint Says It's Owed $9-Mil. Not $0
-----------------------------------------------------
CK Mint Hill, LLC, opposes the $0 proposed cure amount in
connection with the assumption of a nominee agreement and
development agreement with GGP-Mint Hill, LLC under the Debtor's
Third Amended Joint Plan of Reorganization. Wayne H. Davis, Esq.,
at Tannenbaum Helpern Syracuse & Hirshtritt LLP, in New York --
davis@thsh.com -- tells the Court that the Debtor breached the
Development Agreement by ceasing improvements at a project known a
Bridges at Mint Hill. In response to the Debtor's breach, CK
undertook loss mitigation efforts and performed certain parts of
the site improvement work at its own expense simply to preserve
the value of the Project and minimize the delay-related expenses,
he asserts.
CK Mint asks the Court to require the Debtor to:
(i) perform the Site Improvement Work, or give adequate
assurance that it will promptly perform the Site
Improvement Work;
(ii) pay CK $9,115,960 or give adequate assurance that it will
promptly pay those amounts to CK; and
(iii) give CK adequate assurance of its future performance under
the Agreements, including a performance bond.
About General Growth
Based in Chicago, Illinois, General Growth Properties, Inc. --
http://www.ggp.com/-- is the second-largest U.S. mall owner,
having ownership interest in, or management responsibility for,
more than 200 regional shopping malls in 44 states, as well as
ownership in master planned community developments and commercial
office buildings. The Company's portfolio totals roughly
200 million square feet of retail space and includes more than
24,000 retail stores nationwide. General Growth is a self-
administered and self-managed real estate investment trust. The
Company's common stock is trading in the pink sheets under the
symbol GGWPQ.
General Growth Properties Inc. and its affiliates filed for
Chapter 11 protection on April 16, 2009 (Bankr. S.D.N.Y., Case No.
09-11977). Marcia L. Goldstein, Esq., Gary T. Holtzer, Esq.,
Adam P. Strochak, Esq., and Stephen A. Youngman, Esq., at Weil,
Gotshal & Manges LLP, serve as bankruptcy counsel. Kirkland &
Ellis LLP is co-counsel. Kurtzman Carson Consultants LLC has been
engaged as claims agent. The Company also hired AlixPartners LLP
as financial advisor and Miller Buckfire Co. LLC, as investment
bankers. The Debtors disclosed $29,557,330,000 in assets and
$27,293,734,000 in debts as of December 31, 2008.
General Growth Properties on November 9, 2010, successfully
completed the final steps of its financial restructuring and
emerged from Chapter 11. GGP successfully restructured
$15 billion of project-level debt recapitalized with $6.8 billion
in new equity capital Paid all creditor claims in full achieved
substantial recovery for equity holders.
As part of its plan of reorganization, GGP has split itself into
two separate and independent publicly traded corporations. GGP
shareholders as of the record date of November 1, 2010 received
common stock in both companies. The new GGP, which will commence
trading November 10 on The New York Stock Exchange under the
ticker symbol "GGP," is the second-largest shopping mall owner and
operator in the country, with more than 183 regional malls in 43
states. The spin-off company, The Howard Hughes Corporation,
consists of GGP's portfolio of master planned communities and
other strategic real estate development opportunities. This
company will trade under the ticker symbol "HHC" on The New York
Stock Exchange.
Bankruptcy Creditors' Service, Inc., publishes General Growth
Bankruptcy News. The newsletter tracks the Chapter 11 proceeding
undertaken by General Growth Properties Inc. and its various
affiliates. (http://bankrupt.com/newsstand/or 215/945-7000)
GENERAL GROWTH: Fairholme Fund Has 12% Stake in New GGP
-------------------------------------------------------
Fairholme Capital Management, L.L.C., disclosed in a Schedule 13G
filing with the Securities and Exchange Commission dated
December 10, 2010, that it beneficially owned 115,094,363 shares
of General Growth Properties, Inc. -- New GGP -- common stock,
which represents 12% of the total outstanding shares of New GGP
common stock.
As of November 9, 2010, New GGP has 961,401,297 outstanding shares
of common stock.
Fairholme Capital has shared power to vote and dispose of the
115,094,363 shares of New GGP common stock.
In addition, each of Bruce R. Berkowitz, a managing member of
Fairholme Capital, and Fairholme Funds, Inc., is deemed to
beneficially own 115,094,363 shares of New GGP common stock, which
represent 12% of the total New GGP common stock.
Mr. Berkowitz and Fairholme Funds also have shared powers to vote
and disposed of the 115,094,363 shares of New GGP common stock.
About General Growth
Based in Chicago, Illinois, General Growth Properties, Inc. --
http://www.ggp.com/-- is the second-largest U.S. mall owner,
having ownership interest in, or management responsibility for,
more than 200 regional shopping malls in 44 states, as well as
ownership in master planned community developments and commercial
office buildings. The Company's portfolio totals roughly
200 million square feet of retail space and includes more than
24,000 retail stores nationwide. General Growth is a self-
administered and self-managed real estate investment trust. The
Company's common stock is trading in the pink sheets under the
symbol GGWPQ.
General Growth Properties Inc. and its affiliates filed for
Chapter 11 protection on April 16, 2009 (Bankr. S.D.N.Y., Case No.
09-11977). Marcia L. Goldstein, Esq., Gary T. Holtzer, Esq.,
Adam P. Strochak, Esq., and Stephen A. Youngman, Esq., at Weil,
Gotshal & Manges LLP, serve as bankruptcy counsel. Kirkland &
Ellis LLP is co-counsel. Kurtzman Carson Consultants LLC has been
engaged as claims agent. The Company also hired AlixPartners LLP
as financial advisor and Miller Buckfire Co. LLC, as investment
bankers. The Debtors disclosed $29,557,330,000 in assets and
$27,293,734,000 in debts as of December 31, 2008.
General Growth Properties on November 9, 2010, successfully
completed the final steps of its financial restructuring and
emerged from Chapter 11. GGP restructured $15 billion of project-
level debt recapitalized with $6.8 billion in new equity capital
Paid all creditor claims in full achieved substantial recovery for
equity holders.
As part of its plan of reorganization, GGP has split itself into
two separate and independent publicly traded corporations. GGP
shareholders as of the record date of November 1, 2010 received
common stock in both companies. The new GGP, which will commence
trading November 10 on The New York Stock Exchange under the
ticker symbol "GGP," is the second-largest shopping mall owner and
operator in the country, with more than 183 regional malls in 43
states. The spin-off company, The Howard Hughes Corporation,
consists of GGP's portfolio of master planned communities and
other strategic real estate development opportunities. This
company will trade under the ticker symbol "HHC" on The New York
Stock Exchange.
Bankruptcy Creditors' Service, Inc., publishes General Growth
Bankruptcy News. The newsletter tracks the Chapter 11 proceeding
undertaken by General Growth Properties Inc. and its various
affiliates. (http://bankrupt.com/newsstand/or 215/945-7000)
GENERAL GROWTH: Files Objections to $73-Mil. in Claims
------------------------------------------------------
General Growth Properties Inc. and its units filed with the
Bankruptcy Court their 71st to 75th omnibus objections to claims,
asking the Court to:
(1) disallow and expunge 98 claims totaling $57,712,590, for
which the Debtors' books and records reflect no liability,
a schedule of which is available for free at:
http://bankrupt.com/misc/ggp_71stOONoLiabilityClaims.pdf
(2) reclassify two claims totaling $4,259, against the correct
Debtors, a schedule of which is available for free at:
http://bankrupt.com/misc/ggp_71stOOWrongDebClaims.pdf
(3) reclassify 43 compound claims filed against the correct
Debtors and reduce the amount of each claim. A schedule of
the affected claims is available for free at:
http://bankrupt.com/misc/ggp_72ndOOCompClaims.pdf
(4) disallow and expunge 82 claims for $10,163,839 relating to
assumed and assigned contracts, for which no basis exists
in the Reorganized Debtors' books and records and relating
to equity interests, a schedule of which is available for
free at:
http://bankrupt.com/misc/ggp_73rdOOtobeDisallowedClaims.pdf
(5) disallow and expunge 16 claims totaling $6,363,526 that
are duplicative of other claims filed by or on behalf of
the same claimant and represent the same underlying
liability, a schedule of which is available for free at:
http://bankrupt.com/misc/ggp_74thOOtobeDisallowedClaims.pdf
(6) allow nine claims in the reduced aggregate amount of
$20,375, a schedule of which is available for free at:
http://bankrupt.com/misc/ggp_74thOOReducedClaims.pdf
(7) reclassify five claims totaling $13,755 against the
correct Reorganized Debtors, a schedule of which is
available for free at:
http://bankrupt.com/misc/ggp_74thOOWrongDebClaims.pdf
* * *
In separate orders, Judge Allan Gropper disallowed and expunged
80 claims totaling $3,505,264.
Judge Gropper also disallowed about 30 compound claims and
recategorized those claims as separate claims. The original
amount for the Compound Claims is decreased. The separate claims
are deemed allowed.
Judge Gropper allowed Claim No. 4431 of Siemens Industry Inc. in
the reduced amount of $12,786.
Judge Gropper reclassified Claim No. 162 filed by Elgins Electric
Inc. and Claim No. 532 asserted by General Electric Capital Corp,
totaling $4,259 against the correct Reorganized Debtors.
Judge Gropper continued to January 13, 2010, the hearing on the
Reorganized Debtors' objection to 15 claims.
Judge Gropper also acknowledged that the Debtors' objection to
Claim No. 4889 of Howard County, Maryland has been withdrawn or
otherwise resolved.
Schedules of the claims subject to the omnibus claims orders are
available for free at:
http://bankrupt.com/misc/ggp_71stOOOrder.pdf
http://bankrupt.com/misc/ggp_72ndOOOrder.pdf
Before entry of the orders, Ann Marie Bolduc, revenue officer of
Rhode Island Department of Administration, explained that after
Claim No. 9623 was filed for pass-thru withholding taxes for the
tax years 2006 and 2008, General Growth Properties filed a 2009
return and now owes 2009-pass through taxes as well. She said the
Department will file another claim to reflect the 2009-pass
through taxes.
Sullivan, Ward, Asher & Patton, P.C., said it is willing to amend
its claims for a total of $21,050, but insisted that no reason
exists why the amount due for legal services and costs should not
appear on the Reorganized Debtors' books and records.
About General Growth
Based in Chicago, Illinois, General Growth Properties, Inc. --
http://www.ggp.com/-- is the second-largest U.S. mall owner,
having ownership interest in, or management responsibility for,
more than 200 regional shopping malls in 44 states, as well as
ownership in master planned community developments and commercial
office buildings. The Company's portfolio totals roughly
200 million square feet of retail space and includes more than
24,000 retail stores nationwide. General Growth is a self-
administered and self-managed real estate investment trust. The
Company's common stock is trading in the pink sheets under the
symbol GGWPQ.
General Growth Properties Inc. and its affiliates filed for
Chapter 11 protection on April 16, 2009 (Bankr. S.D.N.Y., Case No.
09-11977). Marcia L. Goldstein, Esq., Gary T. Holtzer, Esq.,
Adam P. Strochak, Esq., and Stephen A. Youngman, Esq., at Weil,
Gotshal & Manges LLP, serve as bankruptcy counsel. Kirkland &
Ellis LLP is co-counsel. Kurtzman Carson Consultants LLC has been
engaged as claims agent. The Company also hired AlixPartners LLP
as financial advisor and Miller Buckfire Co. LLC, as investment
bankers. The Debtors disclosed $29,557,330,000 in assets and
$27,293,734,000 in debts as of December 31, 2008.
General Growth Properties on November 9, 2010, successfully
completed the final steps of its financial restructuring and
emerged from Chapter 11. GGP successfully restructured
approximately $15 billion of project-level debt recapitalized with
$6.8 billion in new equity capital paid all creditor claims in
full achieved substantial recovery for equity holders.
As part of its plan of reorganization, GGP has split itself into
two separate and independent publicly traded corporations. GGP
shareholders as of the record date of November 1, 2010 received
common stock in both companies. The new GGP, which will commence
trading November 10 on The New York Stock Exchange under the
ticker symbol "GGP," is the second-largest shopping mall owner and
operator in the country, with more than 183 regional malls in 43
states. The spin-off company, The Howard Hughes Corporation,
consists of GGP's portfolio of master planned communities and
other strategic real estate development opportunities. This
company will trade under the ticker symbol "HHC" on The New York
Stock Exchange.
Bankruptcy Creditors' Service, Inc., publishes General Growth
Bankruptcy News. The newsletter tracks the Chapter 11 proceeding
undertaken by General Growth Properties Inc. and its various
affiliates. (http://bankrupt.com/newsstand/or 215/945-7000)
GENERAL GROWTH: New GGP CEO & President Said to Leave Post
----------------------------------------------------------
General Growth Properties, Inc., Chief Executive Officer Adam Metz
and President and Chief Operating Officer Thomas Nolan were to
step down from the company on December 22, 2010, according to
sources familiar with the matter, Reuters reported on December 17.
In October, GGP Inc. -- Old GGP -- named Sandeep Mathrani as the
reorganized company's chief executive officer. According to an
October 28, 2010 public statement, Mr. Mathrani will assume the
CEO post at the beginning of 2011.
In September, GGP agreed to extend the term of Messrs. Metz and
Nolan for up to one year after the company's emergence from
bankruptcy. Judge Allan S. Gropper of the U.S. Bankruptcy for the
Southern District of New York declared GGP's Third Amended Joint
Plan of Reorganization effective on November 9, 2010.
Under the September agreements, Messrs. Nolan and Metz will
continue to manage the final phases of the reorganized company's
restructuring.
In an interview with Mr. Mathrani by Jonathan O'Connell of The
Washington Post, the new CEO said there is a chance that New GGP
will tear the roof off some of its properties, particularly in
areas of density and population growth. "Some of these malls will
get to the point where they can be de-malled," added Mr. Mathrani,
the report noted.
About General Growth
Based in Chicago, Illinois, General Growth Properties, Inc. --
http://www.ggp.com/-- is the second-largest U.S. mall owner,
having ownership interest in, or management responsibility for,
more than 200 regional shopping malls in 44 states, as well as
ownership in master planned community developments and commercial
office buildings. The Company's portfolio totals roughly
200 million square feet of retail space and includes more than
24,000 retail stores nationwide. General Growth is a self-
administered and self-managed real estate investment trust. The
Company's common stock is trading in the pink sheets under the
symbol GGWPQ.
General Growth Properties Inc. and its affiliates filed for
Chapter 11 protection on April 16, 2009 (Bankr. S.D.N.Y., Case No.
09-11977). Marcia L. Goldstein, Esq., Gary T. Holtzer, Esq.,
Adam P. Strochak, Esq., and Stephen A. Youngman, Esq., at Weil,
Gotshal & Manges LLP, serve as bankruptcy counsel. Kirkland &
Ellis LLP is co-counsel. Kurtzman Carson Consultants LLC has been
engaged as claims agent. The Company also hired AlixPartners LLP
as financial advisor and Miller Buckfire Co. LLC, as investment
bankers. The Debtors disclosed $29,557,330,000 in assets and
$27,293,734,000 in debts as of December 31, 2008.
General Growth Properties on November 9, 2010, successfully
completed the final steps of its financial restructuring and
emerged from Chapter 11. GGP successfully restructured
approximately $15 billion of project-level debt recapitalized with
$6.8 billion in new equity capital paid all creditor claims in
full achieved substantial recovery for equity holders.
As part of its plan of reorganization, GGP has split itself into
two separate and independent publicly traded corporations. GGP
shareholders as of the record date of November 1, 2010 received
common stock in both companies. The new GGP, which will commence
trading November 10 on The New York Stock Exchange under the
ticker symbol "GGP," is the second-largest shopping mall owner and
operator in the country, with more than 183 regional malls in 43
states. The spin-off company, The Howard Hughes Corporation,
consists of GGP's portfolio of master planned communities and
other strategic real estate development opportunities. This
company will trade under the ticker symbol "HHC" on The New York
Stock Exchange.
Bankruptcy Creditors' Service, Inc., publishes General Growth
Bankruptcy News. The newsletter tracks the Chapter 11 proceeding
undertaken by General Growth Properties Inc. and its various
affiliates. (http://bankrupt.com/newsstand/or 215/945-7000)
GENERAL MOTORS: Did Not Violate Stay in Dealer's Ch. 11 Case
------------------------------------------------------------
Judge Robert E. Grossman denied a request by Ramp Chevrolet, Inc.,
to hold General Motors LLC in contempt for willfully violating the
automatic stay by asserting improper setoffs without Bankruptcy
Court approval, and compelling GM to remit $975,459 to the Debtor.
Ramp Chevrolet asserts that this amount is currently due and owing
pursuant to agreements between the parties. Ramp Chevrolet also
seeks to hold GM in contempt for filing a secured proof of claim
in Ramp Chevrolet's case in violation of the automatic stay and to
reclassify and reduce the secured claim filed by GM from $699,096
to an unsecured claim for $406,571.
GM LLC, which purchased the assets and assumed certain of the
prior agreements of General Motors Corp. et al., in a Chapter 11
bankruptcy proceeding filed by Old GM, currently pending in the
Bankruptcy Court for the Southern District of New York, opposes
the Motion. GM denies that it violated the automatic stay and
asserts that it owes Ramp Chevrolet roughly $279,000, not $975,459
pursuant to Wind-Down and other Deferred Termination Agreements
dated as of June 1, 2009, between the GM Debtors and certain of
their dealers, including Ramp Chevrolet, which were assigned from
Old GM to GM, and which Ramp Chevrolet assumed in its bankruptcy
case. GM argues that because Ramp Chevrolet has assumed the
agreements cum onere, GM has the right under the agreements to fix
the amount that is due to Ramp Chevrolet. Therefore GM has not
violated the automatic stay nor is it attempting to setoff any
prior obligation of Ramp Chevrolet but rather it is merely
exercising its rights under the agreements. GM also argues that
no money is currently due and owing since it has the right to
withhold final payment until Ramp Chevrolet has complied with the
conditions precedent set forth in the agreements, conditions it
argues that remain unsatisfied.
Judge Grossman agreed with GM, holding that the WDAs are binding
agreements and Ramp Chevrolet is charged with accepting the
burdens and benefits therein. Judge Grossman said GM has the
discretion to reduce the Termination Payment Amount under the
WDAs. The reduction is not a setoff, and is enforceable as a
matter of law and equity. To the extent Ramp Chevrolet and GM
cannot agree as to whether any of the charge backs are prohibited
as untimely under the Act, the Court will hold an evidentiary
hearing on February 22, 2011 at 10:00 a.m. to resolve this
dispute.
A copy of Judge Grossman's December 21, 2010 Memorandum Decision
is available at http://is.gd/jh8UZfrom Leagle.com.
Ramp Chevrolet, Inc., operated three auto franchises (Chevrolet,
Chevrolet Medium Duty Truck and Hummer). It filed for Chapter 11
bankruptcy protection (Bankr. E.D.N.Y. Case No. 09-77513) on
October 5, 2009. Eric J. Snyder, Esq., at Siller Wilk LLP in New
York, serves as bankruptcy counsel. In its petition, the Debtor
listed under $50,000 in assets and between $1 million to
$10 million in debts.
About General Motors
With its global headquarters in Detroit, Michigan, General Motors
Company -- http://www.gm.com/-- is one of the world's largest
automakers. GM employs 205,000 people in every major region of
the world and does business in some 157 countries. GM and its
strategic partners produce cars and trucks in 31 countries, and
sell and service these vehicles through the following brands:
Buick, Cadillac, Chevrolet, FAW, GMC, Daewoo, Holden, Jiefang,
Opel, Vauxhall and Wuling. GM's largest national market is China,
followed by the United States, Brazil, Germany, the United
Kingdom, Canada, and Italy. GM's OnStar subsidiary is the
industry leader in vehicle safety, security and information
services.
General Motors Co. is 60.8% owned by the U.S. Government. It was
formed to acquire the operations of General Motors Corporation
through a sale under 11 U.S.C. Sec. 363 following Old GM's
bankruptcy filing. The deal was closed on July 10, 2009, and Old
GM changed its name to Motors Liquidation Co. Old GM remains
subject to a pending Chapter 11 reorganization case before the
U.S. Bankruptcy Court for the Southern District of New York.
At September 30, 2010, GM had US$137.238 billion in total assets,
US$106.522 billion in total liabilities, US$6.998 billion in
preferred stock, $971 million in non-controlling interest, and
US$23.718 billion in total equity.
New GM has a 'BB-' corporate credit rating from Standard & Poor's
and a 'BB-' issuer default rating from Fitch.
About Motors Liquidation
General Motors Corporation and three of its affiliates filed for
Chapter 11 protection on June 1, 2009 (Bankr. S.D.N.Y. Lead Case
No. 09-50026). The Honorable Robert E. Gerber presides over the
Chapter 11 cases. Harvey R. Miller, Esq., Stephen Karotkin, Esq.,
and Joseph H. Smolinsky, Esq., at Weil, Gotshal & Manges LLP,
assist the Debtors in their restructuring efforts. Al Koch at AP
Services, LLC, an affiliate of AlixPartners, LLP, serves as the
Chief Executive Officer for Motors Liquidation Company. GM is
also represented by Jenner & Block LLP and Honigman Miller
Schwartz and Cohn LLP as counsel. Cravath, Swaine, & Moore LLP is
providing legal advice to the GM Board of Directors. GM's
financial advisors are Morgan Stanley, Evercore Partners and the
Blackstone Group LLP.
The U.S. Trustee has appointed an Official Committee of Unsecured
Creditors and a separate Official Committee of Unsecured Creditors
Holding Asbestos-Related Claims. Lawyers at Kramer Levin Naftalis
& Frankel LLP serve as bankruptcy counsel to the Creditors
Committee. Attorneys at Butzel Long serve as counsel regarding
supplier contract matters. FTI Consulting, Inc., serves as
financial advisors to the Creditors Committee. Elihu Inselbuch,
Esq., at Caplin & Drysdale, Chartered, represents the Asbestos
Committee. Legal Analysis Systems, Inc., serves as asbestos
valuation analyst.
Bankruptcy Creditors' Service, Inc., publishes General Motors
Bankruptcy News. The newsletter tracks the Chapter 11 proceeding
undertaken by General Motors Corp. and its various affiliates.
(http://bankrupt.com/newsstand/or 215/945-7000)
GREENBRIER COS: Clarifies Media Reports on Offering Proceeds
------------------------------------------------------------
In a free writing prospectus dated December 15, 2010, The
Greenbrier Company, Inc., commented on articles published on
December 13, 2010, by The Oregonian and the Daily Journal of
Commerce.
Greenbrier said the articles were not prepared or reviewed by it
in advance of their publication. With the exception of quotations
directly attributed to Mark Rittenbaum, Greenbrier's chief
financial officer, or information directly extracted from
Greenbrier's press releases or filings with the Securities and
Exchange Commission, the articles constitute the authors' or
others' opinions, which are not endorsed or adopted by Greenbrier.
According to the Company, statements in the articles should be
considered only after carefully reviewing the uncertainties, risks
and other factors set forth under the headings "Risk Factors" and
"Forward Looking Statements" in Greenbrier's Annual Report on Form
10-K for the fiscal year ended August 31, 2010, as well as other
information contained in other reports and documents filed by
Greenbrier with the Securities and Exchange Commission.
With respect to statements regarding the anticipated use of
proceeds from its at-the-market underwritten offering of 3,000,000
shares of its common stock, Greenbrier said no determination with
respect to the use of proceeds has been made and that it intends
to use the net proceeds from the Offering for general corporate
purposes.
With respect to statements regarding Greenbrier's future financing
and liquidity requirements, Greenbrier's debt, and Greenbrier's
intentions or need to pursue future financings, Greenbrier
reiterated that, including following the completion of the
Offering, Greenbrier will have a high level of indebtedness, a
portion of which has variable interest rates. Greenbrier's level
of indebtedness, and the terms of its indebtedness could adversely
affect its business, financial condition and liquidity. Although
Greenbrier intends to refinance its debt on or before maturity,
there can be no assurance that it will be successful, or if
refinanced, that it will be at favorable rates and terms. If
Greenbrier is unable to successfully refinance its debt,
Greenbrier could have inadequate liquidity to fund its ongoing
cash needs.
Additionally, Greenbrier said it may raise additional capital,
which could have a dilutive effect on existing holders of
Greenbrier's common stock and adversely affect the market price of
its common stock. Except for a typical lock-up agreement with the
underwriter for the Offering, Greenbrier is not restricted from
issuing additional shares of its common stock or securities that
are convertible into or exchangeable for, or that represent the
right to receive, Greenbrier's common stock. Greenbrier evaluates
opportunities to access the capital markets taking into account
its financial condition and other relevant considerations.
Subject to market conditions, Greenbrier may take further actions
to raise capital. Such actions could include, among other things,
the issuance of additional shares of Greenbrier's common stock.
With respect to statements regarding Greenbrier's backlog, railcar
orders and customers, Greenbrier noted that its backlog is not
necessarily indicative of the level of its future revenues.
Greenbrier's manufacturing backlog represents future production
for which Greenbrier has written orders from Greenbrier's
customers in various periods, and estimated potential revenue
attributable to those orders. Some of this backlog is subject to
Greenbrier's fulfillment of certain competitive conditions.
Greenbrier's railcar deliveries, which are the primary source of
Greenbrier's manufacturing revenue, were approximately 2,500 units
in the fiscal year ended August 31, 2010. Greenbrier derives a
significant amount of its revenue from a limited number of
customers, the loss of or reduction of business from one or more
of which could have an adverse effect on Greenbrier's business. A
significant portion of Greenbrier's revenue and backlog is
generated from a few major customers. Greenbrier cannot be
assured that its customers will continue to use Greenbrier's
products or services or that they will continue to do so at
historical levels. A reduction in the purchase or leasing of
Greenbrier's products or a termination of its services by one or
more of Greenbrier's major customers could have an adverse effect
on Greenbrier's business and operating results.
With respect to statements regarding future financial results,
profitability, demand and relative market share and ability to
anticipate the market for Greenbrier's products and services,
Greenbrier notes that it faces aggressive competition by a
concentrated group of competitors in all geographic markets and in
each industry sector in which it operates and that a number of
factors may influence its performance.
About Greenbrier Cos.
Based in Lake Oswego, Oregon, The Greenbrier Companies Inc.
operates in three primary business segments: manufacturing,
refurbishment and parts, and leasing and services. The
manufacturing segment, operating from four facilities in the
United States, Mexico and Poland, produces double-stack intermodal
railcars, conventional railcars, tank cars and marine vessels.
The refurbishment & parts segment performs railcar repair,
refurbishment and maintenance activities in the United States and
Mexico. The leasing & services segment owns roughly 8,000
railcars and provides management services for roughly 225,000
railcars.
The Company's balance sheet at Aug. 31, 2010, showed $1.0 billion
in total assets, $2.63 million in revolving notes, $181.64 million
in accounts payable, $81.14 million in deferred income taxes,
$11.38 million in deferred revenue, $498.70 million in notes
payable, and stockholders' equity of $297.40 million
* * *
As reported by the Troubled Company Reporter on August 19, 2010,
Moody's Investors Service raised its Speculative Grade Liquidity
Rating for The Greenbrier Companies to SGL-3 from SGL-4. At the
same time, Moody's affirmed the company's existing ratings,
including the corporate family rating of Caa1. Greenbrier's
rating outlook is negative in consideration of the continued
sluggish demand for new railcars and the company's need to address
certain refinancing needs.
GSC GROUP: Hearing on Black Diamond Sale Continued
--------------------------------------------------
American Bankruptcy Institute reports that Manhattan Bankruptcy
Judge Arthur Gonzalez has again continued a hearing to consider
approving the $235 million sale of GSC Group Inc.'s assets to
hedge fund Black Diamond Capital Management LLC.
As reported in the Troubled Company Reporter on Dec. 16, 2010,
GSC Group delayed its proposed sale to Black Diamond amid
negotiations with the other lenders that oppose the deal.
The TCR reported on Dec. 3, 2010, that several investors in funds
managed by GSC are objecting to the sale to Black Diamond, noting
that GSC's business provides personal services which can't be sold
or assigned in bankruptcy without consent from parties receiving
the services.
Black Diamond and its affiliate Black Diamond Commercial Finance,
LLC, as agent for a lender group, emerged -- following a three-day
auction -- as winning bidder for substantially all of the
investment management business and related assets of GSC Group.
The assets to be sold consist primarily of the assets owned, held,
or used in the Debtors' investment management business, including
debt and equity interests in partnerships, limited liability
companies and investment vehicles to which the Debtors provide
investment management services or serve as general partner,
limited partner, member or in a similar capacity.
About GSC Group
Florham Park, New Jersey-based GSC Group, Inc. --
http://www.gsc.com/-- is a private equity firm specializing in
mezzanine and fund of fund investments. It filed for Chapter 11
bankruptcy protection on August 31, 2010 (Bankr. S.D.N.Y. Case No.
10-14653). Michael B. Solow, Esq., at Kaye Scholer LLP, assists
the Debtor in its restructuring effort. Epiq Bankruptcy
Solutions, LLC, is the Debtor's notice and claims agent. Capstone
Advisory Group, LLC, is the Debtor's financial advisor. The
Debtor estimated its assets at $1 million to $10 million and debts
at $100 million to $500 million.
GTC BIOTHERAPEUTICS: Terminates Registration of Common Stock
------------------------------------------------------------
In a Form 15 filing with the Securities and Exchange Commission
on December 15, 2010, GTC Biotherapeutics, Inc. said it is
terminating the registration of its common stock under Section
12(g) of the Securities Exchange Act of 1934.
Framingham, Mass.-based GTC Biotherapeutics, Inc. (OTC BB: GTCB)
-- http://www.gtc-bio.com/-- develops, supplies and
commercializes therapeutic proteins produced through transgenic
animal technology. ATryn(R), GTC's recombinant human
antithrombin, has been approved for use in the United States and
Europe.
In addition to ATryn(R), GTC is developing a portfolio of
recombinant human plasma proteins with known therapeutic
properties. These proteins include recombinant forms of human
coagulation factors VIIa and IX, which are being developed for the
treatment of patients with hemophilia, and recombinant
alpha-fetoprotein, which is being developed for the treatment of
myasthenia gravis and multiple sclerosis.
The Company's balance sheet at September 30, 2010, showed
$24.5 million in total assets, $48.2 million in total liabilities,
and a stockholders' deficit of $23.8 million.
The Company has an accumulated deficit of $333.4 million at
September 30, 2010. The Company also has negative working capital
of $7.8 million as of September 30, 2010. Based on the Company's
cash balance as of September 30, 2010, as well as potential cash
receipts primarily from the funding of programs under the LFB
collaboration, GTC believes its capital resources will be
sufficient to fund operations to the middle of December 2010.
As reported in the Troubled Company Reporter on March 15, 2010,
PricewaterhouseCoopers LLP, in Boston, expressed substantial doubt
about the Company's ability to continue as a going concern,
following the Company's results for the fiscal year ended
January 3, 2010. The independent auditors noted of the Company's
recurring losses from operations and limited available funds as of
January 3, 2010.
GUARANTY FINANCIAL: Files Chapter 11 Liquidation Plan
-----------------------------------------------------
BankruptcyData.com reports that Guaranty Financial Group filed
with the U.S. Bankruptcy Court a Chapter 11 Joint Plan of
Liquidation and related Disclosure Statement.
BankruptcyData says the Disclosure Statement asserts, "The Plan
memorializes a global settlement reached between the major
constituents in the Chapter 11 Cases -- the Debtors, the FDIC-
Receiver, and Wilmington Trust. The Plan contemplates the
creation of a Liquidation Trust to liquidate the remaining assets
of the Debtors' Estates and to coordinate distribution of the Cash
in the Estates and any other proceeds of liquidation in
furtherance of the settlement memorialized in the Plan."
Dallas, Texas-based Guaranty Financial Group Inc. --
http://www.guarantygroup.com/-- is a unitary savings and loan
holding company. The Company's primary operating entities are
Guaranty Bank and Guaranty Insurance Services, Inc. Guaranty
Financial filed for bankruptcy after the Guaranty bank was seized
by regulators and sent to receivership under the Federal Deposit
Insurance Corporation. Before the bank was taken over, the
balance sheet of the holding company had $15.4 billion in assets
as of September 30, 2008.
Guaranty Financial together with affiliates filed for Chapter 11
on August 27, 2009 (Bankr. N.D. Tex. Case No. 09-35582).
Attorneys at Haynes & Boone, LLP, represent the Debtors.
According to the schedules attached to its petition, the Company
disclosed $24,295,000 in total assets and $323,413,428 in
total debts, including $305 million in trust preferred security.
GULFSTREAM INT'L: Court Decides on Further Cash Use Today
---------------------------------------------------------
The Hon. John K. Olson of the U.S. Bankruptcy Court for the
Southern District of Florida will convene a hearing today,
December 27, 2010, at 2:00 p.m., to consider Gulfstream
International Group Inc., and its affiliates' request to further
use the cash collateral securing their obligations to their junior
lenders.
The Court granted the Debtor interim access to the cash collateral
until December 27 to provide additional liquidity.
As reported in the Troubled Company Reporter on November 15, as
adequate protection of the junior lenders' interests in the DIP
facility collateral, the Debtors will grant the junior lenders
valid, binding, enforceable and perfected additional and
replacement liens in all property of the Debtors' estates.
The junior lenders have not consented to the use of the cash
collateral.
Victory Park Capital Advisors, LLC, the Debtors' DIP lender,
consented to the Debtors' request to use the cash collateral.
About Gulfstream International
Fort Lauderdale, Florida-based Gulfstream International Airlines
(NYSE Amex:GIA) operates a fleet of turboprop Beechcraft 19000
aircraft, and specializes in providing travelers with access to
niche locations not typically covered by major carriers. GIA
operates more than 150 scheduled flights per day, serving nine
destinations in Florida, 10 destinations in the Bahamas, five
destinations from Continental Airline's hub under the Department
of Transportation's Essential Air Service Program and supports
charter service to Cuba through a services agreement with
Gulfstream Air Charter, Inc., an entity otherwise unrelated to the
Debtors. GIA operates as a Continental Connection carrier, as
well as for United Airlines, Northwest Airlines and Copa Airlines,
through code share agreements. GIA has 620 employees, including
530 working full-time.
Gulfstream International Group, Inc., filed for Chapter 11
bankruptcy protection on November 4, 2010 (Bankr. S.D. Fla. Case
No. 10-44131). Brian K. Gart, Esq., at Berger Singerman, P.A.,
assists the Debtor in its restructuring effort. The Debtor
estimated its assets at $100,001 to $500,000 and debts at
$1 million to $10 million.
Affiliates Gulfstream International Group, Inc., Gulfstream
International Airline, Inc., Gulfstream Training Academy, Inc.,
GIA Holdings Corp., Inc., and Gulstream Connection, Inc., filed
separate Chapter 11 petitions on November 4, 2010.
HARRISBURG, PA: City Council to Vote on Revised Budget Dec. 29
--------------------------------------------------------------
Romy Varghese, writing for Dow Jones Newswires, reported last week
the 2011 budget for Harrisburg remains a matter of debate days
before it must be approved, as several City Council members push
for deeper expenditure cuts. Dow Jones reported that at a budget
committee meeting Tuesday, several council members advocated 10%
cuts for every department in the $57 million spending plan
proposed by Mayor Linda Thompson. According to Dow Jones, the
council members prefer the reductions over the city selling land
under parking garages to the Harrisburg Parking Authority to fill
a $4.3 million hole.
Dow Jones said Mayor Thompson's administration is opposed to
making further cuts to the budget, which is $8 million less than
the 2010 one, and other council members raised concerns that city
operations would be adversely affected.
According to Dow Jones, another budget meeting is scheduled for
December 29. The City Council will vote on the budget on
December 30.
Dow Jones noted the city must pass a balanced budget by year-end.
If Mayor Thompson vetoes a budget approved by the council, the
2010 budget would be in place for next year.
According to Dow Jones, Mayor Thompson's original 2011 budget
released last month mistakenly failed to fully fund the city's
general obligation debt for 2011. After the City Council
discovered the error, the administration proposed selling six
parcels of land the city owns that are located under three parking
structures to the Harrisburg Parking Authority. Proceeds in
excess of covering debt service would go toward avoiding a fire
station closure planned in the budget.
The Troubled Company Reporter on December 17, 2010, reported that
the state of Pennsylvania accepted Harrisburg into Act 47, the
state's oversight program for distressed cities. The approval of
Harrisburg's to the program was a widely anticipated decision as
the capital city struggles with its fiscal problems, Dow Jones'
Small Cap had reported.
Act 47 aims to stabilize municipalities under severe financial
strain and set them on a path for sustainable fiscal health. The
program provides cities with a state-appointed coordinator who
drafts a recovery plan, and the cities are eligible for other
revenue sources unavailable to other local governments, such as a
commuter tax.
The state Department of Community and Economic Development is
appoints a coordinator who has 90 days to develop a recovery plan
for consideration by the mayor and city council, according to Bill
Rochelle, the bankruptcy columnist for Bloomberg News.
"This is an important first step on the city's road to fiscal
recovery," Mayor Linda Thompson said in a written statement
obtained by Dow Jones. "There will be difficult choices to be
made by the city's leaders as we craft a comprehensive long-term
recovery plan. But we have an opportunity to become the model for
comeback cities, and it is my intention to seize that
opportunity," she added.
About Harrisburg, PA
The city of Harrisburg is coping with debt related to a failed
revamp of an incinerator. The outstanding principal on the
Incinerator debt is $288 million. Total principal and interest on
this debt would amount to approximately $458 million. Debt
service payments on the total incinerator debt are $20 million per
year. Of this total, Dauphin County, Pennsylvania, is responsible
for roughly $10 million and Harrisburg is responsible for the
other $10 million. The city is guarantor on 100% of the
$288 million Incinerator debt.
The City Council of Harrisburg, Pennsylvania, voted 5-2 on
September 28 to seek professional advice on bankruptcy or state
oversight. Harrisburg needed state aid to avoid default on
$3.3 million of bond payments this month.
The city has missed about $8 million in debt-service payments this
year on bonds issued in connection with a trash-to-energy
incinerator. The city owes another $40 million by the end of the
year, and was sued by its home county Dauphin County; bond insurer
Assured Guaranty Municipal Corp., a unit of Assured Guaranty Ltd.;
and bond trustees TD Bank and M&T Bank Corp. over $19 million in
skipped bond payments.
In November 2010, the city council tapped Cravath, Swaine and
Moore LLP as debt restructuring advisors. Cravath is working on
"pro bono" basis.
HAPPY VALLEY: Section 341(a) Meeting Scheduled for Jan. 18
----------------------------------------------------------
The U.S. Trustee for Region 14 will convene a meeting of Happy
Valley 160, L.L.C.'s creditors on January 18, 2011, at 9:00 a.m.
The meeting will be held at the US Trustee Meeting Room, 230 N.
First Avenue, Suite 102, Phoenix, Arizona.
This is the first meeting of creditors required under Section
341(a) of the U.S. Bankruptcy Code in all bankruptcy cases.
All creditors are invited, but not required, to attend. This
Meeting of Creditors offers the one opportunity in a bankruptcy
proceeding for creditors to question a responsible office of the
Debtor under oath about the company's financial affairs and
operations that would be of interest to the general body of
creditors.
Phoenix, Arizona-based Happy Valley 160, L.L.C., filed for
Chapter 11 bankruptcy protection on December 13, 2010 (Bankr. D.
Ariz. Case No. 10-39628). Mark W. Roth, Esq., at Polsinelli
Shughart P.C., serves as the Debtor's bankruptcy counsel. The
Debtor estimated its assets and debts at $10 million to
$50 million.
HAPPY VALLEY: Taps Polsinelli Shughart as Bankruptcy Counsel
------------------------------------------------------------
Happy Valley 160, L.L.C., sought and obtained authorization from
the Hon. Charles G. Case, II, of the U.S. Bankruptcy Court for the
District of Arizona to employ Polsinelli Shughart PC as bankruptcy
counsel.
Polsinelli Shughart will:
a. prepare pleadings and applications;
b. conduct examinations incidental to the administration of
the Debtor's bankruptcy;
c. advise the Debtor of its rights, duties, and obligations
under Chapter 11 of the U.S. Bankruptcy Code, taking any
and all necessary action incident to the proper
preservation and administration of the Debtor's Chapter 11
estate; and
d. formulate and prepare a plan of reorganization and
disclosure statement, and any other necessary action
concerning any of the above-mentioned matters.
Polsinelli Shughart will be paid based on the rates of its
professionals:
Partners $275-$600
Associates $220-$250
Paralegals $150-$145
Mark W. Roth, Esq., an attorney at Polsinelli Shughart, assures
the Court that the firm is a "disinterested person" as that term
defined in Section 101(14) of the Bankruptcy Code.
Phoenix, Arizona-based Happy Valley 160, L.L.C., filed for Chapter
11 bankruptcy protection on December 13, 2010 (Bankr. D. Ariz.
Case No. 10-39628). The Debtor estimated its assets and debts at
$10 million to $50 million.
HAWKS PRAIRIE: Reorganization Plan Confirmation Set for January 27
------------------------------------------------------------------
The Hon. Brian D. Lynch of the U.S. Bankruptcy Court for the
Western District of Washington will convene a hearing on
January 27, 2011, at 1:00 p.m., to consider confirmation of Hawks
Prairie Investment LLC's Plan of Reorganization. Objections, if
any, are due January 20.
Ballots on the Plan are due January 20, at 5:00 p.m., and must be
delivered to:
RYAN, SWANSON & CLEVELAND, PLLC
Attn: Anne J. Hermes
1201 Third Avenue, Suite 3400
Seattle, WA 98101-3034
According to the Disclosure Statement, the Plan provides Hawks
Prairie until March 15 to sell 337 acres of undeveloped real
property in Lacey, Washington, for a minimum net price of
$35,000,000. If a sale occurs, the proceeds will be used first to
pay secured claims in the order of their priority and then, if any
funds are left, to pay unsecured claims. To the extent the third
deed of trust held by Howard Talbitzer and Anthony Glavin is void
or avoided, the sale proceeds that otherwise would have been paid
to T/G will be available to pay unsecured claims. If there has
not been a sale of the property by March 15, HomeStreet Bank and
T/G may hold non-judicial foreclosure sales.
A full-text copy of the Disclosure Statement is available for free
at http://bankrupt.com/misc/HAWKSPRAIRIE_DS.pdf
About Hawks Prairie Investment LLC
Olympia, Washington-based Hawks Prairie Investment LLC owns real
property in Thurston County, Washington. It filed for Chapter 11
bankruptcy protection on August 13, 2010 (Bankr. W.D. Wash. Case
No. 10-46635). Timothy W. Dore, Esq., at Ryan Swanson & Cleveland
PLLC, represents the Debtor. The Company disclosed $89,000,071 in
assets and $44,778,104 in liabilities as of the Chapter 11 filing.
An affiliate, Pacific Investment Group LLC, filed a separate
Chapter 11 petition on October 22, 2009 (Bankr. W.D. Wash. Case
No. 09-47915).
HD SUPPLY: Daniel Pryor Resigns From Board of Directors
-------------------------------------------------------
Daniel A. Pryor, an appointee of The Carlyle Group, resigned from
HD Supply Inc.'s board of directors effective December 31, 2010.
Pursuant to a stockholders agreement between HDS Investment
Holding, Inc., parent company, its equity sponsors and their
affiliates and other stockholders of HDS Investment Holding, Inc.,
Carlyle is entitled to appoint three directors onto the Company's
board of directors. Carlyle has not yet appointed a replacement
for Mr. Pryor.
About HD Supply
HD Supply, Inc., headquartered in Atlanta, Georgia, is one of the
largest North American wholesale distributors supporting
residential and non-residential construction and to a lesser
extent electrical consumption and repair and remodeling. HDS also
provides maintenance, repair and operations services. Its
businesses are organized around three segments: Infrastructure and
Energy; Maintenance, Repair & Improvement; and, Specialty
Construction. HDS operates through approximately 800 locations
throughout the U.S. and Canada serving contractors, government
entities, maintenance professionals, home builders and
professional businesses.
As reported in the TCR on April 27, 2010, Moody's Investors
Service downgraded HD Supply's Corporate Family Rating and
Probability of Default Rating to Caa2 from Caa1. "The downgrade
results from Moody's views that the construction industry, the
main driver of HDS' revenues, will continue to be weak for the
foreseeable future, pressuring the company's ability to generate
meaningful levels of earnings and free cash flow relative to its
debt."
HIT OR MISS: Kombassan, as Alter Ego, Is Liable for UNITE Plan
--------------------------------------------------------------
Kombassan Holding A.S. appeals from a judgment of the United
States District Court for the Southern District of New York
(Rakoff, J.) holding it liable to the Retirement Plan of the UNITE
HERE National Retirement Fund and its trustees for withdrawal
liability incurred by Hit or Miss pursuant to sections 502(a)(3)
and 4301(a) of the Employee Retirement Income Security Act of
1974, codified at, 29 U.S.C. Secs. 1132(a)(3), 1451(a), in the
amount of $668,929 plus prejudgment interest of $407,431, for a
total of $1,076,360.
Although Kombassan assigned its HOM shares to four Turkish
corporations to avoid a Turkish law limiting overseas investments,
because it continued to exercise complete control over HOM, the
U.S. Court of Appeals for the Second Circuit holds that Kombassan
was an alter ego of HOM and is, therefore, responsible for its
withdrawal liability. Accordingly, a three-judge panel consisting
of Chief Judge Dennis G. Jacobs, and Circuit Judges Amalya L.
Kearse and Peter W. Hall affirm the district court's judgment.
A copy of the Second Circuit's December 21, 2010 decision, written
by Judge Hall, is available at http://is.gd/jhJ08from Leagle.com.
Hit or Miss Inc., of Stoughton, Mass., one of the nation's best-
known women's apparel retailers, filed for Chapter 11 bankruptcy
on Nov. 17, 2000, before the U.S. Bankruptcy Court for the
District of New Jersey.
HOVNANIAN ENT: Incurs $132MM After Tax Net Loss for Oct. 31 Qtr
---------------------------------------------------------------
Hovnanian Enterprises reported results for its fourth quarter and
fiscal year ended October 31, 2010.
For the fourth quarter ended October 31, 2010, the after-tax net
loss was $132.1 million compared with a net loss of $250.8 million
in the fourth quarter of fiscal 2009. The after-tax net income
for fiscal 2010 was $2.6 million compared with a net loss of
$716.7 million, or $9.16 per common share, in the prior year. As
a result of tax legislation changes, the after-tax net income for
fiscal 2010 included a federal income tax benefit of
$291.3 million.
Total revenues were $353.0 million for the fourth quarter of
fiscal 2010 compared with $437.4 million in the same quarter a
year ago. For fiscal 2010, total revenues were $1.4 billion
compared with $1.6 billion in the prior year.
The Company's balance sheet at Oct. 31, 2010, showed $1.82 billion
in total assets, $2.15 billion in total liabilities, and a
stockholder's deficit of $337.94 million.
"In spite of strong long-term demographics, the current housing
market remains quite challenging. The combination of a lackluster
job market and high foreclosure activity is clearly having a
dampening effect on the housing market. The only silver lining is
that we continue to find land acquisition opportunities which we
believe will yield appropriate returns at today's home prices and
sales paces," commented Ara K. Hovnanian, Chairman of the Board,
President and Chief Executive Officer. "Even without a general
housing recovery, we are optimistic that as the percentage of
deliveries from newly identified communities increases, our
overall performance should continue to improve."
A full-text copy of the earnings release is available for free
at http://ResearchArchives.com/t/s?7159
About Hovnanian Enterprises
Red Bank, New Jersey-based Hovnanian Enterprises, Inc. (NYSE: HOV)
-- http://www.khov.com/-- founded in 1959 by Kevork S. Hovnanian,
is one of the nation's largest homebuilders with operations in
Arizona, California, Delaware, Florida, Georgia, Illinois,
Kentucky, Maryland, Minnesota, New Jersey, New York, North
Carolina, Ohio, Pennsylvania, South Carolina, Texas, Virginia and
West Virginia. The Company's homes are marketed and sold under
the trade names K. Hovnanian Homes, Matzel & Mumford, Brighton
Homes, Parkwood Builders, Town & Country Homes, Oster Homes and
CraftBuilt Homes. As the developer of K. Hovnanian's Four Seasons
communities, the Company is also one of the nation's largest
builders of active adult homes.
* * *
Hovnanian has a 'CCC' issuer default rating from Fitch Ratings.
In April 2010, Fitch said, "While Fitch expects somewhat better
prospects for the housing industry this year, the Rating Outlook
for HOV remains Negative given the challenges still facing the
housing market, which are likely to meaningfully moderate the
early stages of this recovery, and the company's still substantial
debt position and high leverage."
Standard & Poor's Ratings Services affirmed its 'CCC+' corporate
credit ratings on Hovnanian Enterprises Inc., and its subsidiary,
K. Hovnanian Enterprises Inc. S&P also affirmed its ratings on
the companies' debt and preferred stock. S&P revised its outlooks
on the companies to negative from developing.
HOVNANIAN ENT: Ara Hovnanian Owns Derivative Securities
-------------------------------------------------------
Ara K. Hovnanian, chairman of the board, president and CEO at
Hovnanian Enterprises Inc., disclosed in a Form 5 filing with the
Securities and Exchange Commission on December 8, 2010, that he
acquired derivative shares of Class B common stock of the Company
on these dates:
Transaction Shares Shares Beneficially
Date Acquired Owned After Transaction
----------- -------- -----------------------
12/30/2009 14,350 1,099,561
12/30/2009 17,938 445,146
12/30/2009 21,526 534,175
12/30/2009 14,350 251,946
12/30/2009 14,350 356,117
The Class B Common Stock, par value $.01 per share, non-
cumulative, is immediately converted into an equal number of
shares of Class A Common Stock, par value $0.01 per share, non-
cumulative.
On November 10, 2009, Mr. Hovnanian received a distribution of
223,587 shares of Class B Common Stock from the Ara K. Hovnanian
2004 Grantor Retained Annuity Trust, of which he was trustee and
the principal beneficiary. Mr. Hovnanian's beneficial interest in
such shares was not changed by such distribution.
In addition, on May 28, 2010, Mr. Hovnanian transferred 100,000
shares of Class B Common Stock from his direct ownership to the
Ara K. Hovnanian 2010 Grantor Retained Annuity Trust of which he
is a trustee and the principal beneficiary.
On May 28, 2010, Mr. Hovnanian transferred 100,000 shares of Class
B Common Stock from his direct ownership to the Ara K. Hovnanian
2010 Grantor Retained Annuity Trust of which he is a trustee and
the principal beneficiary.
About Hovnanian Enterprises
Red Bank, New Jersey-based Hovnanian Enterprises, Inc. (NYSE: HOV)
-- http://www.khov.com/-- founded in 1959 by Kevork S. Hovnanian,
is one of the nation's largest homebuilders with operations in
Arizona, California, Delaware, Florida, Georgia, Illinois,
Kentucky, Maryland, Minnesota, New Jersey, New York, North
Carolina, Ohio, Pennsylvania, South Carolina, Texas, Virginia and
West Virginia. The Company's homes are marketed and sold under
the trade names K. Hovnanian Homes, Matzel & Mumford, Brighton
Homes, Parkwood Builders, Town & Country Homes, Oster Homes and
CraftBuilt Homes. As the developer of K. Hovnanian's Four Seasons
communities, the Company is also one of the nation's largest
builders of active adult homes.
* * *
Hovnanian has a 'CCC' issuer default rating from Fitch Ratings.
In April 2010, Fitch said, "While Fitch expects somewhat better
prospects for the housing industry this year, the Rating Outlook
for HOV remains Negative given the challenges still facing the
housing market, which are likely to meaningfully moderate the
early stages of this recovery, and the company's still substantial
debt position and high leverage."
HOVNANIAN ENT: Sirwart Hovnanian Discloses Equity Stake
-------------------------------------------------------
Sirwart Hovnanian disclosed in a Form 5 filing with the Securities
and Exchange Commission on December 6, 2010, that he acquired
170,842.01 shares of Class B common stock of Hovnanian Enterprises
Inc. on December 23, 2009. Mr. Hovnanian disposed of 82,516.69
shares of Class B common stock of the Company on December 30,
2009.
The Class B Common Stock, par value $0.01 per share, non-
cumulative, is immediately converted into an equal number of
shares of Class A Common Stock, par value $0.01 per share, non-
cumulative
On January 3, 2007, Mr. Hovnanian resigned as trustee of the
Sirwart Hovnanian 1994 Marital Trust and no longer reports
holdings of shares of Class B Common Stock held by the Marital
Trust through partnership interests in the Kevork S. Hovnanian
Family Limited Partnership, although during her lifetime the Mr.
Hovnanian is the sole beneficiary of the Marital Trust.
Accordingly, the distribution of partnership interests in the
Limited Partnership by the Marital Trust to the Mr. Hovnanian is
reported in this statement as the acquisition by her of the shares
of Class B Common Stock underlying such partnership interests.
About Hovnanian Enterprises
Red Bank, New Jersey-based Hovnanian Enterprises, Inc. (NYSE: HOV)
-- http://www.khov.com/-- founded in 1959 by Kevork S. Hovnanian,
is one of the nation's largest homebuilders with operations in
Arizona, California, Delaware, Florida, Georgia, Illinois,
Kentucky, Maryland, Minnesota, New Jersey, New York, North
Carolina, Ohio, Pennsylvania, South Carolina, Texas, Virginia and
West Virginia. The Company's homes are marketed and sold under
the trade names K. Hovnanian Homes, Matzel & Mumford, Brighton
Homes, Parkwood Builders, Town & Country Homes, Oster Homes and
CraftBuilt Homes. As the developer of K. Hovnanian's Four Seasons
communities, the Company is also one of the nation's largest
builders of active adult homes.
* * *
Hovnanian has a 'CCC' issuer default rating from Fitch Ratings.
In April 2010, Fitch said, "While Fitch expects somewhat better
prospects for the housing industry this year, the Rating Outlook
for HOV remains Negative given the challenges still facing the
housing market, which are likely to meaningfully moderate the
early stages of this recovery, and the company's still substantial
debt position and high leverage."
IHAB TARTIR: Case Summary & 14 Largest Unsecured Creditors
----------------------------------------------------------
Debtor: Ihab Hussam Tartir
56 Evelyn Place
Staten Island, NY 10305
Bankruptcy Case No.: 10-51846
Chapter 11 Petition Date: December 21, 2010
Court: United States Bankruptcy Court
Eastern District of New York (Brooklyn)
Judge: Jerome Feller
Debtor's Counsel: Karamvir Dahiya, Esq.
DAHIYA LAW OFFICES, LLC
350 Broadway Suite 412
New York, NY 10013
Tel: (212) 766-8000
Fax: (212) 766-8001
E-mail: karam@bankruptcypundit.com
Scheduled Assets: $4,474,400
Scheduled Debts: $10,640,409
A list of the Debtor's 14 largest unsecured creditors
filed together with the petition is available for free
at http://bankrupt.com/misc/nyeb10-51846.pdf
JOE T WASHBURN: Kansas Court Allows IRS's Claim
-----------------------------------------------
Joe T. Washburn, v. Internal Revenue Service, Case No. No.
10-5068 (Bankr. D. Kansas), seeks a determination that the United
States, acting through the Internal Revenue Service, has been paid
in full on its claim filed in Mr. Washburn's bankruptcy case and
that further collection by the IRS is enjoined by the debtor's
discharge entered in his bankruptcy case.
Mr. Washburn owned Wascot, Inc., a corporation that filed for
chapter 11 relief (Bankr. D. Kansas Case No. 03-16209) in 2003.
Following the sale of Wascot's assets, Mr. Washburn filed his own
Chapter 11 case (Bankr. D. Kansas Case No. 03-16208) November 12,
2003.
The IRS asserted claims against Mr. Washburn on Trust Fund
Recovery Penalties for withholding taxes not paid or reported by
Wascot. Mr. Washburn's bankruptcy case converted to a chapter 7
liquidation on December 23, 2005, and a trustee was appointed for
the bankruptcy estate.
The IRS filed a timely proof of claim asserting an unsecured
priority claim of $177,000 for taxes or penalties owed to a
governmental unit under 11 U.S.C. Sec. 507(a)(8). The claim
sought $0-in interest. This claim was amended in March 2005 and
allowed for $177,373.47 for TFRPs. All of the TFRPs under I.R.C.
Sec. 6672 were assessed by the IRS on August 2, 2004 and interest
began to run on that date. At no time did the IRS file a claim
for interest on the TFRP. The Debtor received a discharge on
August 4, 2006.
Bankruptcy Judge Robert E. Nugent rules that the postpetition
interest that accrued on the TFRP arose out of a non-dischargeable
debt and is therefore itself not dischargeable. Even had the IRS
filed a proof of claim for the unmatured interest, that claim
would have been disallowed by Sec. 502(b)(2).
"While the circumstances of Washburn's case are unfortunate, this
Court has no power to override statutory provisions or settled
authority in this Circuit to effectuate debtor's requested remedy.
Judgment must therefore be entered for the United States denying
plaintiff's complaint, each party to bear its own costs," Judge
Nugent says.
A copy of Judge Nugent's December 21, 2010 Memorandum Opinion is
available at http://is.gd/jh4gdfrom Leagle.com.
JOSEPH DENNING: Case Summary & 20 Largest Unsecured Creditors
-------------------------------------------------------------
Joint Debtors: Joseph E. Denning
Barbara W. Denning
1431 Denning Rd
Benson, NC 27504
Bankruptcy Case No.: 10-10433
Chapter 11 Petition Date: December 21, 2010
Court: United States Bankruptcy Court
Eastern District of North Carolina (Wilson)
Judge: J. Rich Leonard
Debtor's Counsel: John G. Rhyne, Esq.
HINSON & RHYNE, P.A.
P.O. Box 7479
Wilson, NC 27895-7479
Tel: (252) 291-1746
E-mail: annhinson@nc.rr.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
A list of the Joint Debtors' 20 largest unsecured creditors
filed together with the petition is available for free
at http://bankrupt.com/misc/nceb10-10433.pdf
KCXP INVESTMENTS: Files Schedules of Assets & Liabilities
---------------------------------------------------------
KCXP Investments, LLC, has filed with the U.S. Bankruptcy Court
for the District of Nevada its schedules of assets and
liabilities, disclosing:
Name of Schedule Assets Liabilities
---------------- ------ -----------
A. Real Property $0
B. Personal Property $12,588,750
C. Property Claimed as
Exempt
D. Creditors Holding
Secured Claims $5,700,000
E. Creditors Holding
Unsecured Priority
Claims $92,135
F. Creditors Holding
Unsecured Non-priority
Claims $235,510
----------- -----------
TOTAL $12,588,750 $6,027,645
A copy of the schedules is available for free at:
http://bankrupt.com/misc/KCXP_sal.pdf
Dayton, Nevada-based KCXP Investments, LLC, dba Jet Ranch Hangar
Community Association, filed for Chapter 11 bankruptcy protection
on December 14, 2010 (Bankr. D. Nev. Case No. 10-54847). Kevin A.
Darby, Esq., at Darby Law Practice, Ltd., serves as the Debtor's
bankruptcy counsel.
KCXP INVESTMENTS: Section 341(a) Meeting Scheduled for Jan. 24
--------------------------------------------------------------
The U.S. Trustee for Region 17 will convene a meeting of KCXP
Investments, LLC's creditors on January 24, 2011, at 2:00 p.m.
The meeting will be held at 300 Booth Street, Room 3024, in Reno,
Nevada.
This is the first meeting of creditors required under Section
341(a) of the U.S. Bankruptcy Code in all bankruptcy cases.
All creditors are invited, but not required, to attend. This
Meeting of Creditors offers the one opportunity in a bankruptcy
proceeding for creditors to question a responsible office of the
Debtor under oath about the company's financial affairs and
operations that would be of interest to the general body of
creditors.
Dayton, Nevada-based KCXP Investments, LLC, dba Jet Ranch Hangar
Community Association, filed for Chapter 11 bankruptcy protection
on December 14, 2010 (Bankr. D. Nev. Case No. 10-54847). Kevin A.
Darby, Esq., at Darby Law Practice, Ltd., serves as the Debtor's
bankruptcy counsel. According to its schedules, the Debtor
disclosed $12,588,750 in total assets and $6,027,645 in total
debts as of the Petition Date.
KL ENERGY: Dennis Harstad Resigns as VP and Secretary
-----------------------------------------------------
KL Energy Corporation said Dennis Harstad resigned as the vice
president of plant operations and secretary effective December 17,
2010.
Based in Rapid City, South Dakota, KL Energy Corporation
-- http://www.klenergycorp.com/-- formerly known as Revive-it
Corp., focuses on developing unique technical and operational
capabilities designed to enable the production and
commercialization of biofuel, in particular ethanol from
cellulosic biomass. The Company also plans to provide contracted
engineering and project development services to third party
customers.
The Company's balance sheet as of September 30, 2010, showed
$4.68 million in total assets, $8.19 million in total liabilities,
and a stockholders' deficit of $3.51 million.
As reported in the Troubled Company Reporter on March 11, 2010,
Ehrhardt Keefe Steiner & Hottman PC, in Denver, expressed
substantial doubt about the Company's ability to continue as a
going concern, following the Company's 2009 results. The
independent auditors noted of the Company's recurring losses and
accumulated deficit of $9.27 million as of December 31, 2009.
L&L FOOD CENTERS: Goes Into Receivership
----------------------------------------
Wlns News reports that L&L Food Center chain is in receivership.
The report relates that the company has already closed three
Lansing-area stores. There are five remaining, but more of those
could be on the way out, the report notes.
According to Wlns News, L&L is now operated by Amherst Partners.
Their spokesperson says there is an effort to sell all, or part of
L&L, but if Amherst can't find a buyer all the remaining stores
will close, the report notes.
Wlns News discloses that L&L officials told all 300 employees
about the receivership status and that they may or may not be
keeping their jobs.
L&L Food Center chain is located in Lansing.
LACK'S STORES: Creditors Have Until Feb. 18 to File Claims
----------------------------------------------------------
The Hon. Jeff Bohm of the U.S. Bankruptcy court for the Southern
District of Texas has established February 18, 2011, at 5:00 p.m.,
prevailing Pacific Time, as the deadline for parties-in-interest
(other than governmental entities to file proofs of claim against
Lack's Stores, Incorporated, et al.
Victoria, Texas-based Lack's Stores, Incorporated, is one of the
largest, independently-owned retail furniture chains in the United
States. Lack's Stores is a chain of 36 retail stores and operates
under the trade styles Lacks and Lacks Home Furnishings. The
Company sells a complete line of furnishings for the home
including furniture, bedding, major appliances and home
electronics. The stores are located in South, Central, and West
Texas.
Lack's Stores and its affiliates filed for Chapter 11 bankruptcy
protection on November 16, 2010 (Bankr. S.D. Tex. Lead Case No.
10-60149). The Debtor estimated its assets and debts at
$100 million to $500 million.
Katherine D. Grissel, Esq., Michaela Christine Crocker, Esq., and
Richard H. London, Esq., at Vinson & Elkins LLP, serve as counsel
to the Debtor. Huron Consulting Group, Inc., is the financial
advisor.
LITHIUM TECH: Incurs $3.7 Million Net Loss for September 30 Qtr.
----------------------------------------------------------------
Lithium Technology Corporation filed its quarterly report on
Form 10-Q, reporting a net loss of $3.69 million on $1.47 million
of product and services sales for the three months ended Sept. 30,
2010, compared with a net loss of $1.55 million on $3.01 million
of product and services sales for the same period last year.
The Company's balance sheet at Sept. 30, 2010, showed
$8.52 million in total assets, $32.18 million in total
liabilities, and a stockholders' deficit of $23.66 million.
As reported in the Troubled Company Reporter on April 12, 2010,
Amper, Politziner & Mattia LLP, in Edison, N.J., expressed
substantial doubt about Lithium Technology's ability to continue
as a going concern, following the Company's 2009 results. The
independent auditors noted that the Company has recurring losses
from operations since inception and has a working capital
deficiency.
A full-text copy of the quarterly report on Form 10-Q is available
for free at http://ResearchArchives.com/t/s?712c
Plymouth Meeting, Pa.-based Lithium Technology Corporation is a
mid-volume production stage company that develops large format
lithium-ion rechargeable batteries to be used as a new power
source for emerging applications in the automotive, stationary
power, and national security markets.
LOCAL INSIGHT: Court Approves Hiring of Bankruptcy Professionals
----------------------------------------------------------------
BankruptcyData.com reports that the U.S. Bankruptcy Court approved
Local Insight Media Holdings' applications seeking to retain
Pachulski Stang Ziehl & Jones as co-counsel, Cadawalader
Wickersham & Taft as special counsel, Kirkland & Ellis as attorney
and Alvarez & Marsal North America for (A) an interim chief
financial officer, a chief restructuring officer,and certain
additional personnel and (B) to designate Richard C. Jenkins as
interim chief financial officer and Scott Brubaker as chief
restructuring officer.
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
(Bankr. D. Del. Case No. 10-13677) on November 17, 2010.
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.
LOCAL INSIGHT: Seeks to Hire Deloitte as Independent Auditor
------------------------------------------------------------
BankruptcyData.com reports that Local Insight Media Holdings filed
with the U.S. Bankruptcy Court applications seeking to retain
Deloitte & Touche (Contact: Steven Yaroch) as independent auditor
and accounting provider at the following hourly rates: partner at
$500, senior manager at 450,manager at 400, senior at 300 and
staff at 250 and PricewaterhouseCoopers (Contact: John Uhrich) as
tax advisor at the following hourly rates: partner at $650 to 750,
director at 500 to 575, manager at 400 to 520 and senior associate
at 200 to 350.
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
(Bankr. D. Del. Case No. 10-13677) on November 17, 2010.
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.
LPATH INC: Barclays Sells 2MM Shares, Keeps 10.6% Stake
-------------------------------------------------------
Barclays PLC and Barclays Bank PLC disclosed in a December 21
regulatory filing that they may be deemed to beneficially own
6,421,100 shares -- or roughly 10.6% -- of LPath Inc. Class A
Common Stock. Barclays disclosed selling 2 million LPath shares
on December 17 at $0.70 a share.
Barclays said they review their holdings in LPath on an ongoing
basis. Depending on the review, they may make additional
purchases or sales of LPath's securities in the future.
Additional transactions, if any, in LPath's securities will depend
on various factors, including, without limitation, the price of
the Common Stock, stock market conditions and the business
prospects of LPath. In addition, Barclays may engage, from time
to time, in discussions with LPath and other stockholders of LPath
concerning LPath and its business.
About LPath
San Diego, Calif.-based Lpath, Inc. is a biotechnology company
focused on the discovery and development of lipidomic-based
therapeutics, an emerging field of medical science whereby
bioactive lipids are targeted to treat human diseases.
According to the Company's 2009 annual report on Form 10-K, Moss
Adams LLP, in San Diego, Calif., expressed substantial doubt about
the Company's ability to continue as a going concern. The
independent auditors noted that the Company had incurred
significant cash losses from operations since inception and
expects to continue to incur cash losses from operations in 2010
and beyond.
At September 30, 2010, LPath had total assets of $4,915,794, total
liabilities of $5,891,142, and a stockholders' deficit of
$975,348.
LPATH INC: Certain Shareholders to Sell 10.9MM Class A Shares
-------------------------------------------------------------
LPath, Inc., filed with the Securities and Exchange Commission on
Dec. 21 Amendment No. 1 to Form S-1 Registration Statement Under
The Securities Act of 1933, on connection with the resale by
certain Company security holders of up to 10,996,372 shares of the
Company's Class A common stock in connection with the resale of:
-- up to 6,978,128 shares of LPath Class A common stock that
were issued in connection with a private placement that
closed on November 15, 2010;
-- up to 3,627,968 shares of LPath Class A common stock that
may be issued upon exercise of warrants acquired by
selling security holders in LPath's November 2010 private
placement (including warrants issued to our placement
agents in such offering);
-- up to 97,787 shares of LPath Class A common stock that may
be issued upon exercise of certain warrants issued in
connection with a private placement that closed in August
2008 (including warrants issued to LPath's placement
agents in such offering); and
-- up to 292,489 shares of LPath Class A common stock that
may be issued upon exercise of certain warrants issued in
connection with a private placement that closed in April
and June 2007 (including warrants issued to LPath's
placement agents in such offering).
The selling security holders may offer to sell the shares of Class
A common stock at fixed prices, at prevailing market prices at the
time of sale, at varying prices, or at negotiated prices. LPath
will not receive proceeds from the sale of shares by the selling
security holders.
LPath Class A common stock is traded on the OTC Bulletin Board
under the symbol "LPTN." On December 17, 2010, the closing sale
price of LPath Class A common stock on the OTC Bulletin Board was
$0.75 per share.
A copy of the Amendment, including a list of the selling
shareholders, is available at http://ResearchArchives.com/t/s?715a
LPath first filed a Form S-1 Registration Statement relating to
the resale of Class A shares on Dec. 7. A copy of the prospectus
is available for free at http://ResearchArchives.com/t/s?7119
About LPath
San Diego, Calif.-based Lpath, Inc. is a biotechnology company
focused on the discovery and development of lipidomic-based
therapeutics, an emerging field of medical science whereby
bioactive lipids are targeted to treat human diseases.
According to the Company's 2009 annual report on Form 10-K, Moss
Adams LLP, in San Diego, Calif., expressed substantial doubt about
the Company's ability to continue as a going concern. The
independent auditors noted that the Company had incurred
significant cash losses from operations since inception and
expects to continue to incur cash losses from operations in 2010
and beyond.
At September 30, 2010, LPath had total assets of $4,915,794, total
liabilities of $5,891,142, and a stockholders' deficit of
$975,348.
LTAP US: Hires Landis Rath as Bankruptcy Counsel
------------------------------------------------
LTAP US, LLLP, asks for authorization from the U.S. Bankruptcy
Court for the District of Delaware to employ Landis Rath & Cobb
LLP as its bankruptcy counsel, nunc pro tunc to the Petition Date.
Landis Rath will, among other things:
a. prepare pleadings, motions, applications, draft orders,
notices, schedules and other documents, and review
financial and other reports to be filed in the Debtor's
bankruptcy case, and advise the Debtor concerning, and
prepare responses to, applications, motions, other
pleadings, notices and other papers that may be filed and
served in the case;
b. appear in Court to represent and protect the interests of
the Debtor and its estate;
c. advise and assist the Debtor in connection with the
formulation, negotiation and promulgation of any potential
plan or plans of reorganization or liquidation and related
documents, and take further actions as may be required in
connection with the Plan during the bankruptcy case; and
d. perform all other necessary legal services in connection
with the case.
Landis Rath will be paid based on the rates of its professionals:
Partners $415-$650
Associates $255-$395
Paralegals $180-$210
Legal Assistants $95-$125
Adam G. Landis, Esq., a partner at Landis Rath, assures the
Court that the firm is a "disinterested person" as that term
defined in Section 101(14) of the Bankruptcy Code.
Atlanta, Georgia-based LTAP US, LLLP, fka Life Trust Asset Pool
US, LLLP, filed for Chapter 11 bankruptcy protection on
December 22, 2010 (Bankr. D. Del. Case No. 10-14125). The Debtor
estimated its assets and debts at $100 million to $500 million.
LTAP US: Seeks to Use Wells Fargo Cash Collateral
-------------------------------------------------
LTAP US, LLLP, asks for authorization from the U.S. Bankruptcy
Court for the District of Delaware to use the cash collateral
securing their obligation to their prepetition lenders until March
2011.
The Debtor entered into a loan and security agreement, dated
June 30, 2008, with Wells Fargo Bank, N.A., and other lenders and
Wells Fargo Securities, LLC, as administrative agent. The
Agreement provides for a secured variable loan pursuant to which
the Debtor issued to the Prepetition Lenders a variable funding
note in the principal amount of up to $224 million. The Agent
alleged that the total amount of outstanding obligations under the
Agreement is approximately $222.5 million, exclusive of accrued
and accruing interest, fees, costs and expenses.
As of the Petition Date, the Debtor has approximately $7.6 million
in unsecured debt consisting primarily of accrued expenses and
trade payables.
Adam G. Landis, Esq., at Landis Rath & Cobb LLP, explains that the
Debtor needs the money to fund its Chapter 11 case, pay suppliers
and other parties. The Debtor will use the collateral pursuant to
a budget, a copy of which is available for free at:
http://bankrupt.com/misc/LTAP_US_budget.pdf
The Debtor doesn't anticipate using any cash collateral until it
is required to pay premiums on January 9, 2011. The Debtor was
formed and exists to own and acquire previously issued life
insurance policies in the life settlement market. The Debtor must
maintain the policies by paying premiums as and when they come
due.
The Debtor's budget reflects that it may run out of cash by
January 2. The Debtor may realize a death benefit or succeed in
obtaining debtor-in-possession financing before it is required to
pay premiums. Absent the use of cash collateral to facilitate the
payment of and pay premiums, policies will lapse, destroying the
value of the collateral. The Debtor says that there is only a
minimal diminution in value expected, if any, from the Debtor's
use of cash collateral. Every dollar of cash collateral that the
Debtor is authorized to use will immediately and demonstrably will
preserve the value of the collateral, to the direct benefit of the
prepetition lenders and the Debtor.
In exchange for the Debtor's use of cash collateral, the Agent
will be granted a security interest in and lien on all assets of
the Debtor. The Debtor will also grant the Agent an allowed
administrative claim with priority over all other administrative
claims in the Debtor's bankruptcy case.
Atlanta, Georgia-based LTAP US, LLLP, fka Life Trust Asset Pool
US, LLLP, filed for Chapter 11 bankruptcy protection on
December 22, 2010 (Bankr. D. Del. Case No. 10-14125). Adam G.
Landis, Esq., Kerri K. Mumford, Esq., and Kimberly A. Brown, Esq.,
at Landis Rath & Cobb LLP, serve as the Debtor's bankruptcy
counsel. The Debtor estimated its assets and debts at
$100 million to $500 million.
LYONDELL CHEMICAL: Former Employees Seek Class Cert. in Bonus Suit
------------------------------------------------------------------
Bankruptcy Law360 reports that a group of 427 former employees of
Lyondell Chemical Co. has asked a bankruptcy court for class
certification to recover short-term incentive bonuses allegedly
promised to them in a buyout agreement made by the Company.
LyondellBasell Industries is one of the world's largest polymers,
petrochemicals and fuels companies. Luxembourg-based Basell AF
and Lyondell Chemical Company merged operations in 2007 to form
LyondellBasell Industries, the world's third largest independent
chemical company. LyondellBasell became saddled with debt as part
of the USUS$12.7 billion merger. Len Blavatnik's Access Industries
owned the Company prior to its bankruptcy filing.
On January 6, 2009, LyondellBasell Industries' U.S. operations,
led by Lyondell Chemical Co., and one of its European holding
companies -- Basell Germany Holdings GmbH -- filed voluntary
petitions to reorganize under Chapter 11 of the U.S. Bankruptcy
Code to facilitate a restructuring of the company's debts. The
case is In re Lyondell Chemical Company, et al., Bankr. S.D.N.Y.
Lead Case No. 09-10023). Seventy-nine Lyondell entities filed for
Chapter 11. Luxembourg-based LyondellBasell Industries AF S.C.A.
and another affiliate were voluntarily added to Lyondell
Chemical's reorganization filing under Chapter 11 on April 24,
2009.
Deryck A. Palmer, Esq., at Cadwalader, Wickersham & Taft LLP, in
New York, served as the Debtors' bankruptcy counsel. Evercore
Partners served as financial advisors, and Alix Partners and its
subsidiary AP Services LLC, served as restructuring advisors.
AlixPartners' Kevin M. McShea acted as the Debtors' Chief
Restructuring Officer. Clifford Chance LLP served as
restructuring advisors to the European entities.
LyondellBasell emerged from Chapter 11 bankruptcy protection in
May 2010, with a plan that provides the Company with US$3 billion
of opening liquidity. A new parent company, LyondellBasell
Industries N.V., incorporated in the Netherlands, is the successor
of the former parent company, LyondellBasell Industries AF S.C.A.,
a Luxembourg company that is no longer part of LyondellBasell.
LyondellBasell Industries N.V. owns and operates substantially the
same businesses as the previous parent company, including
subsidiaries that were not involved in the bankruptcy cases.
LyondellBasell's corporate seat is Rotterdam, Netherlands, with
administrative offices in Houston and Rotterdam.
MAJESTIC STAR: Court OKs Conversion of MSC II from Corp. to LLC
---------------------------------------------------------------
The Hon. Kevin Gross of the U.S. Bankruptcy Court for the District
of Delaware authorized The Majestic Star Casino, LLC, to convert
The Majestic Star Casino II, Inc. from a corporation to a limited
liability company, subject to regulatory approval of the Indiana
Gaming Commission. The conversion of MSC II from a corporation
must not impair or have any impact on any existing pledge of
equity interests in MSC II provided to Wells Fargo Foothill, Inc.
under the Debtors' $80 million senior secured credit facility or
to the Bank of New York Mellon Trust Company, N.A., as indenture
trustee under the indenture pursuant to which the Debtors' 9-1/2%
senior secured notes due 2010 were issued.
The Majestic Star Casino, LLC -- aka Majestic Star Casino, aka
Majestic Star -- is based in Las Vegas, Nev., and is a wholly
owned subsidiary of Majestic Holdco, LLC, which is a wholly owned
subsidiary of Barden Development, Inc. The Company was formed on
December 8, 1993, as an Indiana limited liability company to
provide gaming and related entertainment to the public. The
Company commenced gaming operations in the City of Gary at
Buffington Harbor, located in Lake County, Inc., on June 7, 1996.
The Company is a multi-jurisdictional gaming company with
operations in three states -- Indiana, Mississippi and Colorado.
The Company sought Chapter 11 bankruptcy protection (Bankr. D.
Del. Case No. 09-14136) on November 23, 2009.
The Company's affiliates -- The Majestic Star Casino II, Inc., The
Majestic Star Casino Capital Corp., Majestic Star Casino Capital
Corp. II, Barden Mississippi Gaming, LLC, Barden Colorado Gaming,
LLC, Majestic Holdco, LLC, and Majestic Star Holdco, Inc. -- filed
separate Chapter 11 petitions.
Kirkland & Ellis LLP is the Debtors' bankruptcy counsel. James E.
O'Neill, Esq., Laura Davis Jones, Esq., and Timothy P. Cairns,
Esq., at Pachulski Stang Ziehl & Jones LLP are the Debtors'
Delaware counsel. Xroads Solutions Group, LLC, is the Debtors'
financial advisor, while EPIQ Bankruptcy Solutions LLC serves as
the Debtors' claims and notice agent.
The Majestic Star Casino's balance sheet at June 30, 2009,
showed total assets of $406.42 million and total liabilities
of $749.55 million. When it filed for bankruptcy, the Company
estimated less than $500 million in assets and less than
$1 billion in debts.
MARVIN RICHER: Cannot Use Home State Bank Cash Collateral
---------------------------------------------------------
As reported in the Troubled Company Reporter on October 7, 2010,
Marvin H. Richer and Gail L. Richer asked the U.S. Bankruptcy
Court for the Northern District of Illinois for permission to use
Home State Bank's cash collateral to fund their Chapter 11 case
and pay suppliers and other parties.
The cash collateral is derived from the rents payable by
Friendship House and Brilliance Honda on the property owned by the
Debtors located at 100 S. Main St., Crystal Lake, in Illinois,
totaling $25,894 monthly.
Home State Bank, the Debtor's largest creditor, filed a proof of
claim for $7,696,280.88. The debt to Home State Bank is secured
by a first mortgage lien on the property and an assignment of
Rents against the Property.
The Bankruptcy Court held that there is an insufficient equity
cushion in the property to adequately protect Home State Bank's
debt and that there is a substantial monthly shortfall in income
over total expenses. Hence, the Bankruptcy Court denied the
Debtors' motion for use of cash collateral.
The bank supported its opposition to the Debtor's motion with the
testimony of Paul Conn of Valuation Group, Inc., who testified
that using the sales comparison approach, the property had only an
appraised value of $7.8 million, and that had he had access to the
financial information on Property expenses at the time he
performed his appraisal, it would have resulted in an "ever lower
value" of the subject property.
Crystal Lake, Illinois-based Marvin H. Richer and Gail L. Richer
filed for Chapter 11 bankruptcy protection on September 27, 2010
(Bankr. N.D. Ill. Case No. 10-74803). Bradley T. Koch, Esq., at
Holmstrom & Kennedy P.C., assists the Debtors in their
restructuring efforts. The Debtors estimated their assets and
debts at $10 million to $50 million.
MAUCTRST LLC: Fails in Bid to Dismiss Homeowners' 2003 Suit
-----------------------------------------------------------
District Judge Oliver W. Wanger denied a bid to dismiss the
lawsuit captioned as Richard Sinclair, et al., v. Fox Hollow of
Turlock Owners Association, et al., Case No. 03-cv-05439 (E.D.
Calif.).
The case is a consolidation of three actions: An action commenced
by Plaintiff Fox Hollow of Turlock Homeowners' Association against
Richard Sinclair, Brandon Sinclair, Gregory Mauchley, Lairtrust,
LLC, Capstone, LLC, Mauctrst, LLC, and Stanley Flake as Trustee of
Capstone Trust, Case No. 03-cv-5439; an action commenced by
California Equity Management Group, Inc., against Mauctrst LLC,
Gregory Mauchley, Diana Mauchley, Lairtrust LLC, Richard Sinclair,
Deborah Sinclair, Sinclair Enterprises, Inc., Capstone, LLC,
Brandon Sinclair, Stanley Flake, and Stanley Flake as Trustee of
the F. Hanse Trust and of the Julie Insurance Trust Case No. 03-
cv-5774; and an action commenced by Lairtrust LLC, Mauctrst LLC,
and Capstone LLC against Fox Hollow, Andrew Katakis, and
California Equity Management Group, Inc. in the Stanislaus County
Superior Court, Case No. 322675, removed to the Eastern District
of California Court and consolidated with the Fox Hollow and CEMG
Actions by Order filed on October 6, 2003.
Mauctrst et al. sought dismissal of the Consolidated Complaint.
The action arises out of an alleged fraudulent scheme concerning a
35-unit town home complex in Turlock, California, known as Fox
Hollow of Turlock. Plaintiff Fox Hollow is the home owners'
association for the Property. Plaintiff CEMG is the record owner
of lots contained within the Property, the successor in interest
to lenders who extended loans secured by lots within the Property,
and the assignee of the rights of certain tenants who entered into
leases for units contained in the Property. Mauctrst, Lairtrust,
and Capstone are limited liability companies that were allegedly
used to convert HOA funds, effect property transfers, obtain
loans, prosecute dilatory lawsuits, and to carry out other parts
of the alleged schemes that form the basis for the Racketeer
Influenced and Corrupt Organizations Act claims advanced in the
Consolidated Complaint.
Gregory Mauchley and Mauctrst acquired the Property in 1998 as a
multifamily housing project. Although the proposed subdivision
was never completed, the defendants conspired to borrow funds
secured by individual lots within the Property from lenders such
as GMAC Mortgage, Bank One, Advanta Mortgage, ContiMortgage, and
HFC. Gregory Mauchley and Mauctrst encountered difficulty in
making payments on loans secured by the Property, and in August
2000, financial instructions began to initiate foreclosures on the
real property collateral.
Mauctrst, LLC, filed for Chapter 11 bankruptcy protection on
July 1, 1999.
After an unsuccessful attempt at reorganization, Mauctrst sought
to transfer the Property to Gregory Mauchley. Richard Sinclair,
as attorney for Mauctrst and Gregory Mauchley, filed numerous
lawsuits against lenders to delay or reverse foreclosure sales in
June, July, and August 2000.
A copy of the District Court's Dec. 20 Memorandum Decision is
available at http://is.gd/jh1lSfrom Leagle.com.
METRO CATERING: Goes Into Receivership
--------------------------------------
CBC News reports that Metro Catering has gone into receivership
and workers are worried about their future. The report relates
that the business has fallen prey to the weak economy.
According to the report, bankruptcy documents revealed that Metro
(Windsor) Enterprises Inc. went into receivership on November 30.
Last week, the report relates Metro Catering owner Ed Soulliere,
who employs about 35 workers, transferred assets to his son Ryan
Soulliere.
CBC News says that union president Rick Laporte said Mr. Soulliere
told him that Metro has worked out deals with the bank and
suppliers to keep the business going.
Metro's clientele has been transferred over to the new company,
said Mr. Laporte, and he's hopeful that his members will continue
working, the report adds.
Metro Catering workers recently changed their representation from
the Teamsters to the CAW. Negotiations on a new contract are
expected to begin in January.
Metro Catering is known for serving hot lunches to plant workers
in Windsor-Essex for 50 years.
MIDWEST BANC: Files Liquidating Plan With Creditors Panel
---------------------------------------------------------
Midwest Banc Holdings, Inc., and The Official Committee of
Unsecured Creditors submitted to the U.S. Bankruptcy Court for the
Northern District of Illinois a proposed Plan of Liquidation and
an explanatory Disclosure Statement.
The Plan Proponents will begin soliciting votes on the Plan
following approval of the adequacy of the information in the
Disclosure Statement.
According to the Disclosure Statement, the Plan contemplates the
transfer of all of the Debtor's remaining assets to the Creditor
Trust for the benefit of holders of claims. The Creditor Trust
will take title to and liquidate substantially all of the Debtor's
property other than rights with respect to tax refunds as of the
Effective Date of the Plan, including, but not limited to, Cash,
real estate, furniture, fixtures, investments, accounts,
equipment, any other tangible or intangible personal property,
Causes of Action, and any and all proceeds.
The holders of Allowed Class 3 general unsecured claims, and
Class 4 Claims will receive their pro rata share of Creditor Trust
Assets in accordance with the Plan and the Creditor Trust
Agreement. The Debtor's existing Equity Securities will be
canceled under the Plan, and the Debtor's equity security holders
will receive no distributions on account of their existing
Interests in the Debtor.
The Plan will be funded by the orderly liquidation of all
remaining property of the estate. Distributions will be made by
the distributing party on the effective date or soon as reasonably
practicable thereafter pursuant to the terms of the Plan and the
Creditor Trust Agreement.
Under the Plan, M&I is entitled to elect to either: (i) receive a
release of all claims that are property of the estate, including
but not limited to the right to seek avoidance of M&I's security
interest in the RAC Tax Refund, in full satisfaction of its
secured claims amounting to $65,847,22; or (ii) retain its secured
claim, in which case it will be entitled to assert a deficiency
claim to the extent that it is determined to be undersecured.
There are no other secured claims against the Debtor.
A full-text copy of the Disclosure Statement is available for free
at http://bankrupt.com/misc/MIDWESTBANC_DS.pdf
About Midwest Banc Holdings
Midwest Banc Holdings is the holding company for Midwest Bank and
Trust Company. The bank became subject to FDIC receivership in
May 2010.
Midwest Banc Holdings filed for Chapter 11 protection (Bankr. N.D.
Ill. Case No. 10-37319) in Chicago on August 20, 2010. Hinshaw &
Culbertson serves as bankruptcy counsel to the Debtor. Midwest
Banc disclosed assets of $9,690,937 and debts of $144,746,169 as
of the bankruptcy filing.
MIDWEST BANC: Court Establishes January 31 Claims Bar Date
----------------------------------------------------------
The U.S. Bankruptcy court for the Northern District of Illinois
has given creditors with pre-bankruptcy claims until January 31,
2011, to file proofs of claim against the bankruptcy estate of
Midwest Banc Holdings, Inc.
Governmental units have until 180 days from the petition date to
filed proofs of claim.
Midwest Banc Holdings is the holding company for Midwest Bank and
Trust Company. The bank became subject to FDIC receivership in
May 2010.
Midwest Banc Holdings filed for Chapter 11 protection (Bankr. N.D.
Ill. Case No. 10-37319) in Chicago on August 20, 2010. Hinshaw &
Culbertson serves as bankruptcy counsel to the Debtor. Midwest
Banc disclosed assets of $9,690,937 and debts of $144,746,169 as
of the bankruptcy filing.
MOLECULAR INSIGHT: Transfers Trading to OTCQB Marketplace
---------------------------------------------------------
Molecular Insight Pharmaceuticals Inc. said trading of shares of
the Company's common stock was to be transferred from the Nasdaq
Global Market to the OTCQB Marketplace effective December 21,
2010.
On December 10, 2010, the Company received notification from
Nasdaq that due to its filing of a petition for protection under
Chapter 11 of the U.S. Bankruptcy Code, trading of the Company's
common stock will be suspended at the opening of business on
December 21, and that the Company's common stock will be delisted
from the Nasdaq Stock Market that same day pursuant to Nasdaq
Listing Rules 5101, 5110(b) and IM-5101-1.
About Molecular Insight
Cambridge, Massachusetts-based Molecular Insight Pharmaceuticals,
Inc., is a clinical-stage biopharmaceutical company that provides
services on the detection and treatment of various forms of cancer
and other life-threatening diseases. The Debtor disclosed
$36,453,000 in total assets and $198,829,000 in total debts as of
September 30, 2010.
Molecular Insight filed for Chapter 11 bankruptcy protection on
December 9, 2010 (Bankr. D. Mass. Case No. 10-23355). Alan L.
Braunstein, Esq., at Riemer & Braunstein, LLP, serves as
the Debtor's local Massachusetts counsel. Kramer Levin Naftalis &
Franklin LLP serves as the Debtor's lead bankruptcy counsel.
Foley & Lardner LLP is the Debtor's bankruptcy counsel. CRT
Capital Group LLC is the Debtor's financial advisor. Tatum LLC, a
division of SFN Professional Services LLC, is the Debtor's
financial consultant. Omni Management Group, LLC, is the claims,
and balloting agent.
MPC CORPORATION: Liquidation Plan Confirmation Hearing on Feb. 15
-----------------------------------------------------------------
BankruptcyData.com says the Bankruptcy Court has issued an order
(I) approving MPC Corp.'s Revised Second Amended Disclosure
Statement, (II) establishing procedures for solicitation and
tabulation of votes to accept or reject the Plan of Liquidation,
(III) establishing the deadline and procedures for filing
objections to confirmation of the Plan and (IV) granting related
relief. The Court scheduled a February 15, 2011 hearing to
consider confirmation of the Plan.
Bankruptcy Law360 notes that approval of MPC's amended disclosure
statement had been delayed for nearly a year while it wrangled
with Gateway Inc. over claims stemming from a 2007 transaction
gone awry.
About MPC Corporation
Headquartered in Nampa, Idaho, MPC Corporation --
http://www.mpccorp.com/-- sells personal computer and provides
computer softwares and hardwares to mid-size businesses,
government agencies and education organizations. The Debtors
acquired Gateway Professional Divison from Gateway Inc. and
Gateway Technologies Inc. in October 1, 2007.
The Company and eight of its affiliates filed for Chapter 11
protection on Nov. 6, 2008 (Bankr. D. Del. Lead Case No. 08-
12673). Richard A. Robinson, Esq., at Reed Smith LLP, represents
the Debtors in their restructuring efforts. The Debtor selected
Focus Management Group USA, LLC, as its financial advisor.
Roberta A. DeAngelis, the United States Trustee for Region 3,
appointed seven creditors to serve on an Official Committee of
Unsecured Creditors for the chapter 11 cases of MPC Corporation
and its debtor-affiliates. Hahn & Hessen LLP has been named as
Committee's lead counsel. As of June 30, 2008, the Debtors have
$258.3 million in total assets and $277.8 million in total debts.
NANCY VENCILL: Voluntary Chapter 11 Case Summary
------------------------------------------------
Debtor: Nancy P. Vencill
P.O. Box 860
Rosedale, VA 24280
Bankruptcy Case No.: 10-72956
Chapter 11 Petition Date: December 21, 2010
Court: United States Bankruptcy Court
Western District of Virginia (Roanoke)
Judge: William F. Stone Jr.
Debtor's Counsel: Robert Tayloe Copeland, Esq.
COPELAND & BIEGER, P.C.
P.O. Box 1296
Abingdon, VA 24212
Tel: (276) 628-9525
Fax: (276) 628-4711
E-mail: rcopeland@copelandbieger.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
The Debtor did not file a list of its largest unsecured creditors
together with its petition.
Debtor-affiliate that filed separate Chapter 11 petition:
Petition
Debtor Case No. Date
------ -------- ----
Lebanon Equipment Company, Inc. 10-72524 10/25/10
NEOMEDIA TECH: To Sell $450,000 Secured Debenture to YA Global
--------------------------------------------------------------
NeoMedia Technologies Inc., on December 15, 2010, entered into an
agreement to issue and sell a secured convertible debenture to YA
Global Investments L.P. in the principal amount of $450,000.
The transaction closed December 15, 2010. In addition to the
Debenture, the Company also issued a warrant to the Buyer to
purchase 1,250,000 shares of the Company's common stock, par value
$0.001 per share, for an exercise price of $0.10 per share.
The Debenture will mature on July 29, 2012, and accrue interest at
a rate equal to 14% per annum. The interest will be paid on the
Maturity Date in cash or, provided that certain Equity Conditions
are satisfied, in shares of Common Stock at the applicable
Conversion Price. At any time, the Buyer will be entitled to
convert any portion of the outstanding and unpaid principal and
accrued interest into fully paid and non-assessable shares of
Common Stock at a price equal to the lesser of $0.10 and 95% of
the lowest volume weighted average price of the Common Stock
during the 60 trading days immediately preceding each conversion
date.
The Debenture is secured by certain pledges made with respect to
the assets of the Company and its subsidiaries as set forth in the
Fifth Ratification Agreement dated December 15, 2010, and that
certain Security Agreement and Patent Security Agreement both
dated July 29, 2008, by and among the Company, each of the
Company's subsidiaries made a party thereto, and the Buyer.
In connection with the Agreement, the Company also entered into
those Irrevocable Transfer Agent Instructions with the Buyer dated
December 15, 2010, an escrow agent and WorldWide Stock Transfer,
LLC, the Company's transfer agent.
The Company will not affect any conversion, and the Buyer will not
have the right to convert any portion of the Debenture to the
extent that after giving effect to such conversion, the Buyer
would beneficially own in excess of 9.99% of the number of shares
of Common Stock outstanding immediately after giving effect to
such conversion, except for not less than 65 days prior written
notice from the Buyer.
The Company will have the right to redeem a portion or all amounts
outstanding in the Debenture via Optional Redemption by paying the
amount equal to the principal amount being redeemed plus a
redemption premium equal to 10% of the principal amount being
redeemed, and accrued interest.
About NeoMedia Technologies
Atlanta, Ga.-based NeoMedia Technologies, Inc., provides mobile
barcode scanning solutions. The Company's technology allows
mobile devices with cameras to read 1D and 2D barcodes and provide
"one click" access to mobile content.
The Company's balance sheet at September 30, 2010, showed
$9.04 million in total assets, $83.31 million in total
liabilities, $8.37 million in Series C convertible preferred
stock, $2.50 million in Series D convertible preferred stock, and
a stockholders' deficit of $85.14 million.
At September 30, 2010, the Company has an accumulated deficit of
$237.99 million. The Company also has a working capital deficit
of $82.05 million, of which of which $68.51 million is related to
the Company's financing instruments, including $30.71 million
related to the fair value of warrants and those debentures that
are recorded as hybrid financial instruments, and $37.80 million
related to the amortized cost carrying value of certain of the
Company's debentures and the fair value of the associated
derivative liabilities.
As reported in the Troubled Company Reporter on April 1, 2010,
Kingery & Crous, P.A., in Tampa, Fla., expressed substantial
doubt about the Company's ability to continue as a going concern
following the Company's 2009 results. The independent auditors
noted that the Company has suffered recurring losses from
operations and has ongoing requirements for additional capital
investment.
NEXAIRA WIRELESS: Raises $8.6 Million in Private Sale of Shares
---------------------------------------------------------------
Nexaira Wireless Inc. on December 17, 2010, closed a private
placement of 8,600,000 shares of common stock at a purchase price
of $0.10 per share for aggregate proceeds to the company of
$860,000.
The company said, "We issued 3,000,000 shares to two non-U.S.
person in an offshore transaction relying on Regulation S and
Section 4(2) of the Securities Act of 1933, as amended and
5,600,000 shares to nine U.S. persons pursuant to Rule 506 of
Regulation D and Section 4(2).
Additionally, 1,400,000 warrants were issued as a placement fee
and for ongoing investment banking and other financial advisory
services to three U.S. persons pursuant to Rule 506 of Regulation
D and/or Section 4(2). The warrants are exercisable at a strike
price equal to US$0.28 per share until November 18, 2013.
As reported in the Troubled Company Reporter on February 1, 2010,
BDO Seidman, LLP, in San Diego, expressed substantial doubt about
the Company's ability to continue as a going concern, following
its review of the Company's results for fiscal year ended October
31, 2009, citing the Company's losses from operations, negative
cash flow from operations, and working capital and net capital
deficits.
About NexAira Wireless
Headquartered in Vancouver, B.C., Nexaira Wireless Inc. (OTC BB:
NXWI) -- http://www.nexaira.com/-- does business through its San
Diego based operating subsidiary Nexaira, Inc. Nexaira, Inc.,
develops and delivers third and fourth generation (3G/4G) Wireless
Routing Solutions that offer speed, reliability and security to
carriers, mobile operators, service providers, value added
resellers (VARS) and enterprise customers.
OLD COLONY: Wins Nod for Anderson Aquino as Bankruptcy Counsel
--------------------------------------------------------------
The U.S. Bankruptcy Court for the District of Massachusetts has
granted Old Colony, LLC, permission to employ Anderson Aquino as
its bankruptcy counsel, nunc pro tunc to October 11, 2010.
The Bankruptcy Court is satisfied that the firm represents no
interest adverse to the estate and that it is a "disinterested
person" as that term is defined under Sec. 101(14) of the
Bankruptcy Code.
The firm can be reached at:
Donald F. Farrell, Jr., Esq.
ANDERSON AQUINO LLP
240 Lewis Wharf
Boston, MA 02110
Tel: (617) 723-3600
Saugus, Massachusetts-based Old Colony, LLC, dba The Inn At
Jackson Hole, filed for Chapter 11 bankruptcy protection on
October 11, 2010 (Bankr. D. Mass. Case No. 10-21100). The Debtor
disclosed assets of $2,571,684 and liabilities of $21,363,064 in
its schedules as of the petition date.
OLDE PRAIRIE: Disclosure Statement Hearing Continued Until March 7
------------------------------------------------------------------
The U.S. Bankruptcy Court for the Northern District of Illinois
has continued until March 7, 2011, at 11:00 a.m., the status
hearing on Olde Prairie Block Owner, LLC's proposed Plan of
Reorganization and explanatory Disclosure Statement.
The Debtor will begin soliciting votes on the Plan following
approval of the Disclosure Statement.
As reported in the Troubled Company Reporter on September 27,
2010, according to the Disclosure Statement, the Plan provides for
transfer by deed the entire Olde Prairie Property to CenterPoint
Properties Trust in a "dirt for debt" transaction and will credit
its value against the amount of the Allowed Class 3 Claim.
CenterPoint is the holder of a mortgage secured by the Olde
Prairie Property, the Lakeside Property, the Parking Lease, the
Olde Prairie Lease, the Lakeside Property Parking Lease, the Olde
Prairie Office Lease and the MPEA Condemnation Action, and any of
its successors and assigns.
The Plan also provides for the sale of the Lakeside Property and
the Parking Lease.
The Debtor expects to procure a commitment for a $4 million
debtor-in-possession loan for purposes of paying administrative
expenses, including any adequate protection payments that might be
ordered by the Bankruptcy Court.
A full-text copy of the Disclosure Statement is available for free
at http://bankrupt.com/misc/OLDEPRAIRE_Plan.pdf
About Olde Prairie Block Owner
Chicago, Illinois-based Olde Prairie Block Owner, LLC, owns two
adjacent parcels of land just north of McCormick Place. The
Company filed for Chapter 11 protection on May 18, 2010 (Bankr.
N.D. Ill. Case No. 10-22668). John E. Gierum, Esq., at Gierum &
Mantas, represents the Debtor. The Company estimated assets at
$100 million to $500 million and $10 million to $50 million in
debts.
OSCAR TORRES: Files List of 12 Largest Unsecured Creditors
----------------------------------------------------------
Oscar Torres de Jesus has filed with the U.S. Bankruptcy Court for
the District of Puerto Rico a consolidated list of its 12 largest
unsecured creditors:
Entity Claim Amount
------ ------------
ADM Alliance Nutrition of PR
P.O. Box 908
Hatillo PR 00659 $166,000
Jose Diego Diaz
P.O. Box 1333
Hatillo PR 00659 $90,000
Internal Revenue Service
P.O. Box 21126
Philadelphia, PA 1914-0326 $70,065
Oriental Bank Trust $27,383
CRIM $10,585
Banco de Santander $6,833
CRIM $6,044
Escolab Manufacturing Inc. $5,971
CRIM $4,997
Asoc. Productos Isabela $2,729
Fondo Seguro de Estado $2,113
Asoc. Productores Hatillo $1,021
Hatillo, Puerto Rico-based Oscar Torres De Jesus filed for Chapter
11 bankruptcy protection on December 14, 2010 (Bankr. D. P.R. Case
No. 10-11717). Rafael A. Gonzalez Valiente, Esq., at Latimer,
Biaggi, Rachid & Godreau, serves as the Debtor's bankruptcy
counsel. According to its schedules, the Debtor disclosed
$21,244,150 in total assets and $13,340,713 in total debts as of
the Petition Date.
OSCAR TORRES: Files Schedules of Assets & Liabilities
-----------------------------------------------------
Oscar Torres de Jesus has filed with the U.S. Bankruptcy Court for
the District of Puerto Rico its schedules of assets and
liabilities, disclosing:
Name of Schedule Assets Liabilities
---------------- ------ -----------
A. Real Property $19,990,000
B. Personal Property $1,254,150
C. Property Claimed as
Exempt
D. Creditors Holding
Secured Claims $12,946,971
E. Creditors Holding
Unsecured Priority
Claims $93,805
F. Creditors Holding
Unsecured Non-priority
Claims $299,938
----------- -----------
TOTAL $21,244,150 $13,340,714
A copy of the schedules is available for free at:
http://bankrupt.com/misc/OSCAR_TORRES_sal.pdf
Hatillo, Puerto Rico-based Oscar Torres De Jesus filed for Chapter
11 bankruptcy protection on December 14, 2010 (Bankr. D. P.R. Case
No. 10-11717). Rafael A. Gonzalez Valiente, Esq., at Latimer,
Biaggi, Rachid & Godreau, serves as the Debtor's bankruptcy
counsel.
OXIGENE INC: Gets Delisting Notice From Nasdaq Stock Market
-----------------------------------------------------------
OXiGENE Inc. on December 15, 2010, received a delisting
determination letter from the staff of the Nasdaq Stock Market,
due to the Company's failure to regain compliance with the Nasdaq
Global Market's minimum bid price requirement for continued
listing, set forth in Nasdaq Listing Rule 5450(a)(1) and the
Nasdaq Global Market's market value of listed securities
requirement for continued listing, set forth in Nasdaq Listing
Rule 5450(b)(2)(A). Unless an appeal is filed, the Company's
securities will be delisted from the Nasdaq Global Market and the
trading of the Company's common stock will be suspended at the
opening of business on December 27, 2010, and a Form 25-NSE will
be filed with the Securities and Exchange Commission, which will
remove the Company's securities from listing and registration on
The Nasdaq Stock Market.
The Company expects to appeal the Nasdaq Staff's determination
within seven calendar days of receipt of the letter. Failure to
request a hearing by 4:00 p.m. (Eastern Time) on December 22,
2010, would result in the suspension of trading and delisting of
the Company's common stock under the terms of the delisting
determination letter.
The delisting determination letter states that if the Company
requests an appeal, the Company will be asked to provide a Hearing
Panel with a plan to regain compliance. The Company's plan would
include a discussion of the events that the Company believes will
enable it to timely regain compliance and a commitment to effect a
reverse stock split, if necessary. On November 1, 2010, the
Company's Board of Directors authorized a special meeting of the
Company's stockholders to consider and vote upon a reverse stock
split proposal in anticipation of the receipt of a delisting
determination from Nasdaq. On November 12, 2010, the Company
filed with the SEC its definitive proxy statement, including the
proposal seeking shareholder approval of a reverse stock split, in
connection with the special meeting of the stockholders scheduled
for December 21, 2010. The outcome of this special meeting is
pending announcement.
If the Company appeals the delisting determination, the appeal
will stay the suspension of the Company's securities and the
filing of the Form 25-NSE until a hearing process concludes and
the Hearing Panel has issued a written decision. There can be no
assurance that the Hearing Panel will grant the Company's request
for continued listing in this written decision.
About OxiGENE Inc.
South San Francisco, Calif.-based OXiGENE (Nasdaq: OXGN)
-- http://www.oxigene.com/-- is a clinical-stage
biopharmaceutical company developing novel therapeutics to treat
cancer and eye diseases.
As reported in the Troubled Company Reporter on March 22, 2010,
Ernst & Young LLP, in Boston, 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 recurring operating losses and will be required to
raise additional capital, alternative means of financial support,
or both, prior to January 1, 2011, in order to sustain operations.
The Company's balance sheet at September 30, 2010, showed
$7.7 million in total assets, $15.2 million in total liabilities,
and a stockholders' deficit of $7.5 million.
PHILLIP KEITH: Held in Contempt of Court
----------------------------------------
Bankruptcy Judge Ralph B. Kirscher finds Phillip Dennis Keith in
contempt of court for his failure to comply with the Court's
Orders of October 7, 2010, October 12, 2010, and November 16,
2010, at the behest of the United States Trustee. Mr. Keith has
failed to turn over requested documents and has not appear at the
last two meeting of creditors.
Counsel for the U.S. Trustee explained that the Chapter 7 Trustees
in Mr. Keith's case and five companion cases are struggling to
effectively administer the bankruptcies because of the state of
the Debtors' schedules.
The Court reserves the right to impose compensatory damages, costs
and attorney's fees against Mr. Keith for his contempt of the
Court. The Court also reserves ruling on the U.S. Trustee's
request for daily sanctions against Debtor.
A copy of the Court's December 21, 2010 Memorandum of Decision is
available at http://is.gd/jhbnEfrom Leagle.com.
Phillip Dennis Keith, based in Billings, Montana, owns real
property and businesses. He filed for Chapter 11 bankruptcy
protection (Bankr. D. Mont. Case No. 10-61722) on July 16, 2010.
Allen Beck, Esq., in Lewistown, Montana, served as his bankruptcy
counsel. He estimated $1 million and $10 million in assets and
debts.
Mr. Keith also placed his five companies in bankruptcy:
Scheduled Scheduled
Debtor Company Case No. Assets Liabilities
-------------- -------- --------- -----------
Turn of the Century, Inc. 10-61662 $3,573,600 $7,944,168
PS, Inc. 10-61663 $1,142,558 $7,908,774
Jackpot on Main, Inc. 10-61664 $950,000 $7,015,723
Bailey's Pub, Inc. 10-61884 $1,435,547 $6,656,825
Blackhawk, Inc. 10-61886 $0 $7,898,847
The Court converted Mr. Keith's case to Chapter 7 on September 29,
2010.
PHOENIX FOOTWEAR: Seeks to Halt SEC Reporting Through Stock Split
-----------------------------------------------------------------
A Special Meeting of Stockholders of Phoenix Footwear Group, Inc.,
will be held at Company headquarters, 5840 El Camino Real, Suite
106, in Carlsbad, California, on January 28, 2011, at 9:00 a.m.
local time, to consider and vote on a proposal to amend the
Company's Certificate of Incorporation to change the number of
issued and outstanding shares of common stock, par value $0.01 per
share, of the Company by effecting a 1-for-200 reverse stock
split, immediately followed by a 200-for-1 forward stock split of
the Shares.
The primary effect of the Stock Split will be to reduce the
Company's total number of record holders below 300 persons by
fully cashing out any shareholders with fewer than 200 Shares.
This will allow the Company to suspend its reporting obligations
arising in connection with its common stock under Section 15(d) of
the Exchange Act. In addition, because the Company has a number
of small lot and odd lot shareholders, the Company may, from time
to time, enter into separate, privately negotiated, transactions
with various small lot or odd lot shareholders to purchase such
small lot or odd lot shares.
In conjunction with the Stock Split, those stockholders of record
who will hold fewer than 200 shares before the Reverse Stock Split
will receive a cash payment of $0.75 per pre-Reverse Stock Split
share in lieu of receiving a fractional post-Reverse Stock Split
share, and the holdings of all other stockholders -- i.e., those
holding 200 or more prior to the Reverse Stock Split -- will
remain unchanged.
The Board of Directors unanimously approved the proposal and
recommends voting "for" the proposal.
A full-text copy of the Company's proxy statement is available at
http://is.gd/jibWo
About Phoenix Footwear
Based in Carlsbad, California, Phoenix Footwear Group, Inc. (NYSE
Amex: PXG) specializes in quality comfort women's and men's
footwear with a design focus on fitting features. Phoenix
Footwear designs, develops, markets and sells footwear in a wide
range of sizes and widths under the brands Trotters(R),
SoftWalk(R), and H.S. Trask(R). The brands are primarily sold
through department stores, leading specialty and independent
retail stores, mail order catalogues and internet retailers and
are carried by approximately 650 customers in more than 900 retail
locations throughout the U.S. Phoenix Footwear has been engaged
in the manufacture or importation and sale of quality footwear
since 1882.
The Company's balance sheet at October 2, 2010, showed $10,837,000
in total assets, $6,760,000 in total liabilities, and $4,077,000
in stockholders' equity.
As reported by the Troubled Company Reporter on November 29, 2010,
the Company said in its quarterly report on Form 10-Q for the
period ended October 2, 2010, that the severe global recession has
been challenging during the past two years and has dramatically
affected the Company's business as it is dependent on consumer
demand for its products. During this time, the Company has faced
significant working capital constraints as the result of the
decline in sales, expenditures, and obligations associated with
its restructuring and diminished borrowing capacity. These
factors, together with net losses and negative cash flows during
the past three fiscal years, raise substantial doubt about the
Company's ability to continue as a going concern.
PHOENIX FOOTWEAR: James Riedman Discloses 27.4% Equity Stake
------------------------------------------------------------
James R. Riedman, president of Riedman Corporation, disclosed in
an amended Schedule 13D filing with the Securities and Exchange
Commission on December 8, 2010, that he beneficially owns
2,347,982 shares of common stock of Phoenix Footwear Group, Inc.
representing 27.4% of the shares outstanding.
Riedman Corp. disclosed beneficial ownership of 532,710 shares of
the Company representing 6.4% of the shares outstanding.
As of November 9, 2010, the Company had 8,191,191 shares of Common
Stock outstanding according to its Quarterly Report on Form 10-Q
filed November 16, 2010.
The Phoenix Footwear Group, Inc. Retirement Savings Plan owns
244,963 shares of Common Stock for the benefit of participants in
the Plan, being eligible employees of the Company, which includes
17,039 shares allocated to Mr. Riedman.
Riedman Corporation has the sole power to vote and sole power to
dispose of 532,710 shares of Common Stock, and James R. Riedman
has the sole power to vote 1,039,164 shares and sole power to
dispose of 1,056,203 shares of Common Stock. James R. Riedman, as
a director of Riedman Corporation shares the power to vote and to
dispose of the 532,710 shares beneficially owned by Riedman
Corporation.
As a member of the Retirement Committee of the Plan he shares the
power to vote the 244,963 shares beneficially owned by the Plan,
and has sole power to dispose of the 17,039 shares in the Plan
which have been allocated to his account. Mr. Riedman disclaims
beneficial ownership of all shares of Common Stock over which he
shares power to vote and dispose of the shares.
About Phoenix Footwear
Based in Carlsbad, California, Phoenix Footwear Group, Inc. (NYSE
Amex: PXG) specializes in quality comfort women's and men's
footwear with a design focus on fitting features. Phoenix
Footwear designs, develops, markets and sells footwear in a wide
range of sizes and widths under the brands Trotters(R),
SoftWalk(R), and H.S. Trask(R). The brands are primarily sold
through department stores, leading specialty and independent
retail stores, mail order catalogues and internet retailers and
are carried by approximately 650 customers in more than 900 retail
locations throughout the U.S. Phoenix Footwear has been engaged
in the manufacture or importation and sale of quality footwear
since 1882.
The Company's balance sheet at October 2, 2010, showed $10,837,000
in total assets, $6,760,000 in total liabilities, and $4,077,000
in stockholders' equity.
As reported by the Troubled Company Reporter on November 29, 2010,
the Company said in its quarterly report on Form 10-Q for the
period ended October 2, 2010, that the severe global recession has
been challenging during the past two years and has dramatically
affected the Company's business as it is dependent on consumer
demand for its products. During this time, the Company has faced
significant working capital constraints as the result of the
decline in sales, expenditures, and obligations associated with
its restructuring and diminished borrowing capacity. These
factors, together with net losses and negative cash flows during
the past three fiscal years, raise substantial doubt about the
Company's ability to continue as a going concern.
PILGRIM'S PRIDE: 5th Cir. Affirms Dismissal of Clinton Suit
-----------------------------------------------------------
The United States Court of Appeals for the Fifth Circuit affirmed
a district court decision that threw out a lawsuit by the city of
Clinton, Arkansas, against Pilgrim's Pride Corporation.
A three-judge panel consisting of Circuit Judges Carolyn King,
William Garwood, and W. Eugene Davis, held that the district court
did not err in denying the City's motion for leave to file an
amended complaint or in dismissing the City's petition for failure
to state a claim.
A copy of the Fifth Circuit's December 21, 2010 decision is
available at http://is.gd/jhHxLfrom Leagle.com.
The city sued Pilgrim's Pride in Bankruptcy Court on June 1, 2009,
alleging that Pilgrim's violated the Packers and Stockyards Act by
closing a facility for growing and processing poultry in the city
"for the purpose" and with the "effect" of manipulating the price
of commodity chicken, and further alleging fraud, fraudulent non-
disclosure, and promissory estoppel. The District Court for the
Northern District of Texas, Fort Worth Division, withdrew the case
from the Bankruptcy Court on August 18, 2009. The city filed a
motion for leave to amend, and attached a proposed First Amended
Complaint that sought to plead the fraud and promissory estoppel
claims with sufficient specificity and to add claims for
violations of the Arkansas Deceptive Trade Practices Act and
unjust enrichment. The district court denied leave to amend on
the basis that amending the complaint would be futile, and
dismissed the civil action with prejudice.
About Pilgrim's Pride
Pilgrim's Pride Corporation -- http://www.pilgrimspride.com/-- is
one of the largest chicken companies in the United States, Mexico
and Puerto Rico. The Company's fresh chicken retail line is sold
throughout the US, throughout Puerto Rico, and in the northern and
central regions of Mexico. The Company exports commodity chicken
products to 90 countries. The Company operates feed mills,
hatcheries, processing plants and distribution centers in 15 U.S.
states, Puerto Rico and Mexico.
Pilgrim's Pride and six of its subsidiaries filed voluntary
petitions for relief under Chapter 11 of the Bankruptcy Code on
December 1, 2008 (Bankr. N.D. Tex. Lead Case No. 08-45664). The
Company's subsidiaries in Mexico and certain subsidiaries in the
United States were not included in the filing and operated outside
of the Chapter 11 process.
Attorneys at Weil, Gotshal & Manges LLP served as bankruptcy
counsel. Lazard Freres & Co., LLC, was the Company's investment
bankers. Kurtzman Carson Consulting LLC served as claims and
notice agent. Kelly Hart and Brown Rudnick represented the
official equity committee. Attorneys at Andrews Kurth LLP
represented the official committee of unsecured creditors.
On December 10, 2009, the Bankruptcy Court confirmed the Joint
Plan of Reorganization filed by the Debtors. The Plan was
premised on the sale of the business to JBS SA. Under the Plan,
creditors are paid in full. Existing owners retained 34% of the
equity. The Company emerged from its Chapter 11 bankruptcy
proceedings on December 28, 2009.
PLAYLOGIC ENT: Dutch Unit Restarts Business After Bankruptcy
------------------------------------------------------------
Playlogic Entertainment Inc. said its Dutch subsidiary is
restarting its business after bankruptcy, through a new company.
The Company said it has no connection to this restart.
Playlogic Entertainment, Inc. (Nasdaq OTC: PLGC.OB)
-- http://www.playlogicgames.com/-- is an independent worldwide
publisher of digital entertainment software for consoles, PCs,
handhelds, mobile devices, and other digital media platforms.
Playlogic publishes and distributes products throughout all
available channels, both online and offline. Playlogic is
headquartered in New York City and in Amsterdam, the Netherlands.
The Company's balance sheet at March 31, 2010, showed
$14.1 million in assets and $16.5 million of liabilities, for a
stockholders' deficit of $2.4 million.
PRECISION OPTICS: Investors Extend Note Maturity Date to Jan. 10
----------------------------------------------------------------
Precision Optics Corporation, Inc., on June 25, 2008, entered into
a Purchase Agreement, as amended on December 11, 2008, with
certain accredited investors pursuant to which Precision sold an
aggregate of $600,000 of 10% Senior Secured Convertible Notes.
The Investors amended the Notes on several dates to extend the
"Stated Maturity Date" of the Notes. On December 17, 2010, the
Investors further amended the Notes to extend the "Stated Maturity
Date" to January 10, 2011. The Company believes the Investors
will continue to work with the company to reach a positive outcome
on the Note repayment.
About Precision Optics
Gardner, Mass.-based Precision Optics Corporation, Inc.
(OTC BB: PEYE) -- http://www.poci.com/-- designs, develops,
manufactures and sells specialized optical systems and components
and optical thin-film coatings. The Company conducts business in
one industry segment only and its customers are primarily
domestic. The Company's products and services fall into two
principal areas: (i) medical products for use by hospitals and
physicians; and (ii) advanced optical system design and
development services and products used by industrial customers.
The Company's balance sheet at Sept. 30, 2010, showed
$1.72 million in total assets, $2.03 million in total liabilities,
and a stockholders' deficit of $318,919.
Going Concern Doubt
Stowe & Degon LLC, in Westborough, Mass., expressed substantial
doubt about the Company's ability to continue as a going concern.
The independent auditors noted that the Company has suffered
recurring net losses and negative cash flows from operations.
The Company has sustained recurring net losses for several years.
As of June 30, 2010, the Company has an accumulated deficit of
$38.4 million. As of June 30, 2010, cash and cash equivalents
were $416,040, accounts receivable were $505,200, and current
liabilities were $2.1 million. The Company anticipates that
deferred officers' salaries and director consulting expenses
accrued at June 30, 2010, will be settled by issuing restricted
common stock rather than by cash payments. These deferred amounts
included in current liabilities at June 30, 2010, total roughly
$574,000.
RAMP CHEVROLET: Court Says GM Did Not Violate Automatic Stay
------------------------------------------------------------
Judge Robert E. Grossman denied a request by Ramp Chevrolet, Inc.,
to hold General Motors LLC in contempt for willfully violating the
automatic stay by asserting improper setoffs without Bankruptcy
Court approval, and compelling GM to remit $975,459 to the Debtor.
Ramp Chevrolet asserts that this amount is currently due and owing
pursuant to agreements between the parties. Ramp Chevrolet also
seeks to hold GM in contempt for filing a secured proof of claim
in Ramp Chevrolet's case in violation of the automatic stay and to
reclassify and reduce the secured claim filed by GM from $699,096
to an unsecured claim for $406,571.
GM LLC, which purchased the assets and assumed certain of the
prior agreements of General Motors Corp. et al., in a Chapter 11
bankruptcy proceeding filed by Old GM, currently pending in the
Bankruptcy Court for the Southern District of New York, opposes
the Motion. GM denies that it violated the automatic stay and
asserts that it owes Ramp Chevrolet roughly $279,000, not $975,459
pursuant to Wind-Down and other Deferred Termination Agreements
dated as of June 1, 2009, between the GM Debtors and certain of
their dealers, including Ramp Chevrolet, which were assigned from
Old GM to GM, and which Ramp Chevrolet assumed in its bankruptcy
case. GM argues that because Ramp Chevrolet has assumed the
agreements cum onere, GM has the right under the agreements to fix
the amount that is due to Ramp Chevrolet. Therefore GM has not
violated the automatic stay nor is it attempting to setoff any
prior obligation of Ramp Chevrolet but rather it is merely
exercising its rights under the agreements. GM also argues that
no money is currently due and owing since it has the right to
withhold final payment until Ramp Chevrolet has complied with the
conditions precedent set forth in the agreements, conditions it
argues that remain unsatisfied.
Judge Grossman agreed with GM, holding that the WDAs are binding
agreements and Ramp Chevrolet is charged with accepting the
burdens and benefits therein. Judge Grossman said GM has the
discretion to reduce the Termination Payment Amount under the
WDAs. The reduction is not a setoff, and is enforceable as a
matter of law and equity. To the extent Ramp Chevrolet and GM
cannot agree as to whether any of the charge backs are prohibited
as untimely under the Act, the Court will hold an evidentiary
hearing on February 22, 2011 at 10:00 a.m. to resolve this
dispute.
A copy of Judge Grossman's December 21, 2010 Memorandum Decision
is available at http://is.gd/jh8UZfrom Leagle.com.
Ramp Chevrolet, Inc., operated three auto franchises (Chevrolet,
Chevrolet Medium Duty Truck and Hummer). It filed for Chapter 11
bankruptcy protection (Bankr. E.D.N.Y. Case No. 09-77513) on
October 5, 2009. Eric J. Snyder, Esq., at Siller Wilk LLP in New
York, serves as bankruptcy counsel. In its petition, the Debtor
listed under $50,000 in assets and between $1 million to
$10 million in debts.
About General Motors
With its global headquarters in Detroit, Michigan, General Motors
Company -- http://www.gm.com/-- is one of the world's largest
automakers. GM employs 205,000 people in every major region of
the world and does business in some 157 countries. GM and its
strategic partners produce cars and trucks in 31 countries, and
sell and service these vehicles through the following brands:
Buick, Cadillac, Chevrolet, FAW, GMC, Daewoo, Holden, Jiefang,
Opel, Vauxhall and Wuling. GM's largest national market is China,
followed by the United States, Brazil, Germany, the United
Kingdom, Canada, and Italy. GM's OnStar subsidiary is the
industry leader in vehicle safety, security and information
services.
General Motors Co. is 60.8% owned by the U.S. Government. It was
formed to acquire the operations of General Motors Corporation
through a sale under 11 U.S.C. Sec. 363 following Old GM's
bankruptcy filing. The deal was closed on July 10, 2009, and Old
GM changed its name to Motors Liquidation Co. Old GM remains
subject to a pending Chapter 11 reorganization case before the
U.S. Bankruptcy Court for the Southern District of New York.
At September 30, 2010, GM had US$137.238 billion in total assets,
US$106.522 billion in total liabilities, US$6.998 billion in
preferred stock, $971 million in non-controlling interest, and
US$23.718 billion in total equity.
New GM has a 'BB-' corporate credit rating from Standard & Poor's
and a 'BB-' issuer default rating from Fitch.
About Motors Liquidation
General Motors Corporation and three of its affiliates filed for
Chapter 11 protection on June 1, 2009 (Bankr. S.D.N.Y. Lead Case
No. 09-50026). The Honorable Robert E. Gerber presides over the
Chapter 11 cases. Harvey R. Miller, Esq., Stephen Karotkin, Esq.,
and Joseph H. Smolinsky, Esq., at Weil, Gotshal & Manges LLP,
assist the Debtors in their restructuring efforts. Al Koch at AP
Services, LLC, an affiliate of AlixPartners, LLP, serves as the
Chief Executive Officer for Motors Liquidation Company. GM is
also represented by Jenner & Block LLP and Honigman Miller
Schwartz and Cohn LLP as counsel. Cravath, Swaine, & Moore LLP is
providing legal advice to the GM Board of Directors. GM's
financial advisors are Morgan Stanley, Evercore Partners and the
Blackstone Group LLP.
The U.S. Trustee has appointed an Official Committee of Unsecured
Creditors and a separate Official Committee of Unsecured Creditors
Holding Asbestos-Related Claims. Lawyers at Kramer Levin Naftalis
& Frankel LLP serve as bankruptcy counsel to the Creditors
Committee. Attorneys at Butzel Long serve as counsel regarding
supplier contract matters. FTI Consulting, Inc., serves as
financial advisors to the Creditors Committee. Elihu Inselbuch,
Esq., at Caplin & Drysdale, Chartered, represents the Asbestos
Committee. Legal Analysis Systems, Inc., serves as asbestos
valuation analyst.
Bankruptcy Creditors' Service, Inc., publishes General Motors
Bankruptcy News. The newsletter tracks the Chapter 11 proceeding
undertaken by General Motors Corp. and its various affiliates.
(http://bankrupt.com/newsstand/or 215/945-7000)
RED ROCKET: Court to Consider Plan Confirmation on February 2
-------------------------------------------------------------
The Hon. Arthur B. Federman of the U.S. Bankruptcy Court for the
Western District of Missouri will convene a hearing on February 2,
2011, at 1:30 p.m., to consider final approval of the disclosure
statement, as well as confirmation, of Red Rocket Fireworks,
Inc.'s Plan of Liquidation.
The Court set January 28 as the deadline for filing and serving:
-- objections to the disclosure statement or plan confirmation.
-- serving ballots accepting to rejecting the Plan.
According to the Disclosure Statement, the Debtor has liquidated
all of its assets prior to the filing of the Plan. All funds from
the asset sale have been deposited in Debtor's Debtor-in-
Possession accounts. Normal business expenses, payroll, and
liquidation expenses have been paid from these funds. Funds
remaining after payment of ongoing costs of liquidation and
administration will be disbursed pursuant to the Plan. The
counsel for Debtor will act with the president of Debtor, Bruce
Pyles, as disbursing agent. Distributions will be made in their
discretion subject to a reserve of funds for future costs of
administration. Distributions will commence after a full review of
claims, objections to claims are resolved, and administrative
closure of the case, all of which are anticipated to be completed
by the second quarter of 2011.
Under the Plan, the Debtor intends to pay in full $194,697 of the
secured claims.
Priority unsecured claims amounting to $265,035 are also
anticipated to be paid in full.
Unsecured creditors will share in a pro rata distribution based on
the amount of their claim. As of the date of the filing of the
Plan, the amount of the anticipated dividend to be paid to
unsecured creditors is unknown.
The Debtor will be conclusively deemed to have rejected all
executory contracts and unexpired leases that were not rejected by
operation of the Bankruptcy Code, or were not assumed under a
separate motion before the filing and circulation of the Plan.
There are no known executory contracts or unexpired leases. A
proof of a claim arising from the rejection of an alleged
executory contract or unexpired lease must be filed no later than
February 28.
A full-text copy of the Disclosure Statement is available for free
at http://bankrupt.com/misc/RedRocket_DS.pdf
About Red Rocket Fireworks
Rock Hill, South Carolina-based Red Rocket Fireworks, Inc., filed
for Chapter 11 bankruptcy protection on December 11, 2009 (Bankr.
W.D. Mo. Case No. 09-62800). Raymond I. Plaster, Esq., who has an
office in Springfield, Missouri, represents the Debtor. The
Company estimated assets and debts at $10 million to $50 million
as of the Petition Date.
RILEY BEARD: Case Summary & 20 Largest Unsecured Creditors
----------------------------------------------------------
Joint Debtors: Riley John Beard
Reginia Lorraine Beard
19500 Aquasco Road
Aquasco, MD 20608
Bankruptcy Case No.: 10-38621
Chapter 11 Petition Date: December 21, 2010
Court: United States Bankruptcy Court
District of Maryland (Greenbelt)
Judge: Thomas J. Catliota
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: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
A list of the Joint Debtors' 20 largest unsecured creditors
filed together with the petition is available for free
at http://bankrupt.com/misc/mdb10-38621.pdf
ROCK & REPUBLIC: To Sell IP Assets to VF Corp.
----------------------------------------------
VF Corporation, Rock and Republic Enterprises and The Official
Committee of Unsecured Creditors have executed an asset purchase
agreement for VF Corporation to acquire the trademarks and
intellectual property of Rock and Republic. VF is only acquiring
the Rock and Republic brand name, not the business operations or
retail stores. The agreement is subject to Bankruptcy court
approval and is expected to close in Spring of 2011. Rock and
Republic wishes to assure its customers that the transition over
the next few months will be smooth and seamless, and that all
orders will continue to be filled pursuant to their terms.
When completed, the transaction will mark the first acquisition
for VF's Licensed Brands group, led by David Conn, which was
formed in July of 2009.
VF Corporation considers a global leader in branded lifestyle
apparel with more than 30 brands, including Wrangler(R), The North
Face(R), Lee(R), Vans(R), Nautica(R), 7 For All Mankind(R), Eagle
Creek(R), Eastpak(R), Ella Moss(R), JanSport(R), lucy(R), John
Varvatos(R), Kipling(R), Majestic(R), Napapijri(R), Red Kap(R),
Reef(R), Riders(R)and Splendid(R).
* * *
Apparel News reports that although no purchase price was listed in
the announcement, published reports peg the price at $57 million.
Apparel News notes a hearing on the asset-purchase agreement is
scheduled in Bankruptcy Court on January 19. The report says the
deal must be approved by the Bankruptcy Court on April 1.
Apparel News relates the VF deal was struck after a deal between
Bluestar Alliance -- a New York investor whose labels include Hot
Kiss, Liz Lange and the Sharper Image -- and Rock & Republic for
$33 million to $48 million fell through in mid-December.
About Rock & Republic
New York-based Rock & Republic Enterprises, Inc., is a wholesale
and retail apparel company specializing in an avant-garde and
distinctive line of clothing. Originally started in 2002 by its
Chief Executive Officer, Michael Ball, primarily as an American
jeans company, the Debtors have expanded their lines to include
high fashion clothing for men, women and children as well as
shoes, cosmetics and accessories. The Company's merchandise can
be found at most high end retail stores such as Nordstrom, Neiman
Marcus, Bergdorf Goodman, Bloomingdales, Lord & Taylor, Harvey
Nichols and Saks Fifth Avenue, as well as in small upscale
boutiques.
The Company filed for Chapter 11 bankruptcy protection (Bankr.
S.D.N.Y. Case No. 10-11728) on April 1, 2010. Alex Spizz, Esq.,
and Arthur Goldstein, Esq., at Todtman, Nachamie, Spizz & Johns,
P.C., assist the Company in its restructuring effort. Manderson,
Schaefer & McKinlay, LLP, is the Company's special corporate
counsel. The Company estimated $50 million to $100 million in
assets, and $10 million to $50 million in liabilities.
The Company's affiliate, Triple R, Inc., filed a separate
Chapter 11 petition (Bankr. S.D.N.Y. Case No. 10-11729) on
April 1, 2010.
RW LOUISVILLE: Has Until February 7 to File Chapter 11 Plan
-----------------------------------------------------------
The U.S. Bankruptcy Court for the Western District of Kentucky
directed RW Louisville Hotel Associates, LLC, to file a chapter 11
plan and an explanatory disclosure statement by February 7, 2011.
Louisville, Kentucky-based RW Louisville Hotel Associates, LLC,
aka Holiday Inn Hurstbourne, owns a hotel property located at 1325
South Hurstbourne Parkway, Louisville, Kentucky 40222. It is an
independent franchisee of InterContinental Hotels Group and
operates a 271 room full-service Holiday Inn on the Real Property
and employs approximately 110 employees.
RW Louisville filed for Chapter 11 protection on October 8, 2010
(Bankr. W.D. Ky. Case No. 10-35356). Emily Pagorski, Esq., and
Lea Pauley Goff, Esq., at Stoll Keenon Ogden PLLC, represent the
Debtor. RW Louisville estimated assets and debts at $10 million
to $50 million at the Petition Date.
SAND TECHNOLOGY: Incurs $34,735 Net Loss for October 21 Quarter
---------------------------------------------------------------
SAND Technology Inc. reported a net loss for the three months
ended October 31, 2010, of C$34,735 on revenues of C$1,968,779
compared to net income of C$431,290 on revenues of C$2,485,464 for
the three months ended October 31, 2009.
The Company reported income from operations, before foreign
exchange and interest, for the three months ended October 31,
2010, of C$111,299 compared with income from operations, before
foreign exchange and interest, for the three months ended
October 31, 2009, of C$517,352.
The Company raised additional financing from a significant
shareholder and private investors during the three months ended
October 31, 2010, in the approximate amount of C$448,557, for
which shares will be issued shortly. Cash flows used in Operating
Activities for the three months ended October 31, 2010, amounted
to C$25,466 compared to cash flows used in Operating Activities
for the three months ended October 31, 2009, of C$211,993.
"Our technology is at the forefront of the market and with the
change of the sales and marketing teams, we are seeing the
beginnings of change in our results. The hard work is beginning
to pay off" stated Thomas M. O'Donnell, SAND's President and Chief
Executive Officer. "SAND's products are market-leading with in-
database analytics, Text Analytics, and pattern analysis. We have
been turning SAND around and you are starting to see the green
shoots in these results. I look forward to a change in SAND's
future."
A full-text copy of the earnings release is available for free
at http://ResearchArchives.com/t/s?7153
About SAND Technology
Westmount, Quebec-based SAND Technology Inc. (OTC BB: SNDTF)
-- http://www.sand.com/-- provides Data Management Software and
Best Practices for storing, accessing, and analyzing large amounts
of data on-demand while lowering TCO, leveraging existing
infrastructure and improving operational performance.
SAND/DNA solutions include CRM analytics, and specialized
applications for government, healthcare, financial services,
telecommunications, retail, transportation, and other business
sectors. SAND Technology has offices in the United States,
Canada, the United Kingdom and Central Europe.
The Company's balance sheet at July 31, 2010, showed C$2,117,443
in assets, C$4,578,107 in liabilities and C$2,450,664
shareholders' deficiency.
SCOTT ROTHSTEIN: Federal Watchdog Opposes $10MM Settlement
----------------------------------------------------------
A federal bankruptcy watchdog opposing a proposed $10 million
settlement between the law firm of Ponzi-scheme operator Scott
Rothstein and a tax-accounting firm said the official liquidating
the law firm does not have the right to bar lawsuits against the
accountant, Dow Jones' Small Cap reports.
DBR Small Cap said December 10, 2010, that investors who lost
$160 million in Mr. Rothstein's Ponzi scheme have dropped their
objection to a $10 million settlement with the former lawyer's
tax-accounting firm under a deal that awards them half of the
settlement proceeds. The deal struck between Razorback Funding
LLC and Chapter 11 trustee Herbert Stettin, who is liquidating
Rothstein Rosenfeldt, resolves their competing claims to the $10
million insurance policy of tax-accounting firm Berenfeld Spritzer
Shechter & Sheer LLP. In separate lawsuits, Razorback and Mr.
Stettin both claimed the insurance proceeds as damages for
Berenfeld's alleged decision to look the other way as Rothstein
carried out the $1.2 billion Ponzi scheme that landed the former
Florida attorney behind bars. The fraud victims said they relied
upon Berenfeld's auditing reports to make their investments.
About Rothstein Rosenfeldt
Scott Rothstein, co-founder of law firm Rothstein Rosenfeldt Adler
PA -- http://www.rra-law.com/-- has been suspected of running a
$1.2 billion Ponzi scheme. U.S. authorities claimed in a civil
forfeiture lawsuit filed November 9, 2009, that Mr. Rothstein, the
firm's former chief executive officer, sold investments in non-
existent legal settlements. Mr. Rothstein pleaded guilty to five
counts of conspiracy and wire fraud on January 27, 2010.
Creditors of Rothstein Rosenfeldt Adler signed a petition sending
the Florida law firm to bankruptcy (Bankr. S.D. Fla. Case No.
09-34791). The petitioners include Bonnie Barnett, who says she
lost $500,000 in legal settlement investments; Aran Development,
Inc., which said it lost $345,000 in investments; and trade
creditor Universal Legal, identified as a recruitment firm, which
said it is owed $7,800. The creditors alleged being owed money
invested in lawsuit settlements.
Herbert M. Stettin, the state-court appointed receiver for
Rothstein Rosenfeldt, was officially carried over as the Chapter
11 trustee in the involuntary bankruptcy case.
On June 10, 2010, Mr. Rothstein was sentenced to 50 years in
prison.
SCOTT ROTHSTEIN: Chapter 11 Trustee Sues Lenders
------------------------------------------------
The bankruptcy trustee liquidating Ponzi-scheme operator Scott
Rothstein's law firm is suing a group of lenders whose more than
$440 million in loans allegedly allowed Mr. Rothstein's $1.2
billion fraud to flourish, Dow Jones' Small Cap reports.
Scott Rothstein, co-founder of law firm Rothstein Rosenfeldt Adler
PA -- http://www.rra-law.com/-- has been suspected of running a
$1.2 billion Ponzi scheme. U.S. authorities claimed in a civil
forfeiture lawsuit filed November 9, 2009, that Mr. Rothstein, the
firm's former chief executive officer, sold investments in non-
existent legal settlements. Mr. Rothstein pleaded guilty to five
counts of conspiracy and wire fraud on January 27, 2010.
Creditors of Rothstein Rosenfeldt Adler signed a petition sending
the Florida law firm to bankruptcy (Bankr. S.D. Fla. Case No.
09-34791). The petitioners include Bonnie Barnett, who says she
lost $500,000 in legal settlement investments; Aran Development,
Inc., which said it lost $345,000 in investments; and trade
creditor Universal Legal, identified as a recruitment firm, which
said it is owed $7,800. The creditors alleged being owed money
invested in lawsuit settlements.
Herbert M. Stettin, the state-court appointed receiver for
Rothstein Rosenfeldt, was officially carried over as the Chapter
11 trustee in the involuntary bankruptcy case.
On June 10, 2010, Mr. Rothstein was sentenced to 50 years in
prison.
SEA ISLAND: Asset Sale Completed; Ch. 11 Plan Declared Effective
----------------------------------------------------------------
Sea Island Company's Chapter 11 bankrutpcy plan became effective
December 16, 2010, following the closing of the December 15 sale
of substantially all of the Debtors' assets to Sea Island
Acquisition, LLC.
As reported in the Troubled Company Reporter on November 5, the
Hon. John S. Dalis of the U.S. Bankruptcy Court for the Southern
District of Georgia confirmed the Debtor's Amended and Restated
Joint Chapter 11 Plan.
The Plan was supported by Sea Island Company's senior secured
lenders, supported by the Official Committee of Unsecured
Creditors and, as of the time of the hearing, had been
overwhelmingly approved by its other creditors.
Sea Island Company's financial advisors are FTI Consulting and
Goldman Sachs & Co., and its legal advisor is King & Spalding LLP.
About Sea Island
St. Simons Island, Georgia-based Sea Island Company --
http://www.seaisland.com/-- aka Sea Island Shooting School, Sea
Island Yacht Club, Sea Island Stables, and Cabin Bluff, is a
private resort and real estate development company founded in
1926. Sea Island Company owns and operates Sea Island Resorts,
featuring two of the world's most exceptional destinations: the
Forbes Five-Star Cloister at Sea Island and The Lodge at Sea
Island.
Sea Island filed for Chapter 11 protection on August 10, 2010
(Bankr. S.D. Ga. Case No. 10-21034). Sea Island filed a Chapter
11 plan based upon an agreement to sell substantially all of its
assets to Sea Island Acquisition LP, a limited partnership formed
by investment funds managed by the global investment firms Oaktree
Capital Management, L.P., and Avenue Capital Group.
The Debtor estimated its assets and debts at $500 million to
$1 billion as of the Petition Date.
Affiliates Sea Island Coastal Properties, LLC; Sea Island
Services, Inc.; Sea Island Resort Residences, LLC; Sea Island
Apparel, LLC; First Sea Island, LLC; and Sical, LLC, filed
separate Chapter 11 petitions also on August 10, 2010.
Sarah R. Borders, Esq., Harris Winsberg, Esq., Sarah L. Taub,
Esq., and Jeffrey R. Dutson, Esq., at King & Spalding LLP, assist
the Debtor in its restructuring effort. Robert M. Cunningham,
Esq., at Gilbert, Harrell, Sumerford & Martin PC, is the Debtor's
co-counsel. FTI Consulting, Inc., is the Debtor's restructuring
advisor. EPIQ Bankruptcy Solutions, LLC, is the Debtor's claims
and notice agent.
Donald F. Walton, the U.S. Trustee for Region 21, appointed seven
members to the official committee of unsecured creditors in the
case. The committee has retained Jordi Guso, Esq., at Berger
Singerman, P.A. as its counsel.
SEXY HAIR: Files for Bankruptcy After Lender Talks Fail
-------------------------------------------------------
Sexy Hair Concepts LLC and two affiliates -- Ecoly International,
Inc. and Luxe Beauty Midco Corporation -- filed for Chapter 11
bankruptcy protection before the Bankruptcy Court for the Central
District of California on December 21, 2010, listing $78 million
in assets and more than $91 million in liabilities.
NetDockets reports that the liabilities include roughly $62.5
million in obligations under a senior secured credit facility
entered into in connection with a 2008 private sale transaction
led by Thoma Bravo, LLC. The companies also have roughly $25
million in obligations owing to Northwestern Mutual Life Insurance
Company for subordinated unsecured notes issued in April 2008, the
report notes.
NetDockets says that sexy Hair has been in default of the senior
secured credit facility since December 2008 and began missing
payments on the credit agreement in June 2009. Prior to the
bankruptcy filing, Sexy Hair attempted to resolve its financial
difficulties by negotiating a sale and located a potential
purchaser through a marketing process organized by Imperial
Capital, LLC, the report relates. However, the companies were
ultimately unable to complete the sale outside of bankruptcy and
are now seeking to achieve a similar result through a pre-arranged
plan of reorganization supported by the credit facility agent
(Bank of Montreal) and some of the secured lenders.
Under the proposed plan, the potential purchaser will instead act
as a plan sponsor and Sexy Hair's existing lenders will receive a
pay-down on their debt and take $35 million of restructured debt,
netDockets adds.
Headquartered in Chatsworth, California, Sexy Hair Concepts, LLC
and two affiliates -- Ecoly International, Inc. and Luxe Beauty
Midco Corporation -- distribute and market hair care products
under the Sexy Hair brand. Production and manufacture of the
products is outsourced.
SEXY HAIR: Case Summary & 20 Largest Unsecured Creditors
--------------------------------------------------------
Debtor: Sexy Hair Concepts, LLC
21551 Prairie Street
Chatsworth, CA 91311
Bankruptcy Case No.: 10-25922
Chapter 11 Petition Date: December 21, 2010
Court: United States Bankruptcy Court
Central District of California (San Fernando Valley)
Judge: Geraldine Mund
Debtor's Counsel: Scott F. Gautier, Esq.
PEITZMAN, WEG & KEMPINSKY LLP
10100 Santa Monica Blvd Ste 1450
Los Angeles, CA 90067
Tel: (310) 552-3100
E-mail: sgautier@pwkllp.com
Scheduled Assets: $78,000,000
Scheduled Debts: $91,141,147
Debtor-affiliate that filed separate Chapter 11 petition:
Petition
Debtor Case No. Date
------ -------- ----
Ecoly International, Inc.
Luxe Beauty Midco Corporation
The petition was signed by T. Scott Avila, chief restructuring
officer.
Debtor's List of 20 Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
------ --------------- ------------
Northwestern Mutual Subordinated $25,000,000
Life Insurance Company debt
720 East Wisconsin Ave,
Milwaukee, Wisconsin 53202
Kik Custom Products Vendor $1,156,936
Dept CH 14106
Palatine, IL 60656-1471
220 Laboratories Vendor $539,030
2375 Third Street
Riverside, CA 92507
Design Worx Packaging Vendor $417,314
31 Orchard Street
Lake Forest, California 92630
Cosway Company, Inc. Vendor $359,429
Dept. 0876
Los Angeles, CA 90084-0876
PDA Group Vendor $246,031
24935 Ave Kearney
Valencia, CA 91355
Aware Products Vendor $230,447
Cust. # 470174
9250 Mason Ave.
Chatsworth, CA 91311
CCL Container Vendor $52,853
Laura Packaging Group Vendor $43,509
Coronet Printing Vendor $28,901
C.H. Robinson Worldwide Vendor $27,607
Inc.
Condensa SA Vendor $23,351
Premier Logistics Inc. Vendor $9,075
Diplomat Packaging Co. Vendor $4,114
Bradley Component Vendor $2,748
Supplies
Canadian Sales Agency Vendor $1,173
Hairart Inc. Vendor $1,169
Progressive $331
Jennifer Watsn $160
Christyn C. Hannigan $107
SHILO INN: Gets Interim OK to Use Cathay Bank's Cash Collateral
---------------------------------------------------------------
Shilo Inn, Killeen, LLC, sought and obtained interim authorization
from the U.S. Bankruptcy Court for the Central District of
California to use the cash collateral securing obligations to
Cathay Bank until January 14, 2011, at 5:00 p.m., P.S.T. The
Debtor is allowed to enter into a credit line agreement in an
amount not to exceed $100,000 from Shilo Franchise International,
LLC.
The Debtor operates a 160 all-suite full-service hotel located in
Killeen, Texas, pursuant to a franchise agreement with Shilo
Franchise. Cathay originated the primary loan with the Debtor on
March 20, 2006. On December 11, 2007, Cathay issued a replacement
loan for $15.5 million to the Debtor. Cathay asserts a first
priority security interest in the Debtor's assets to secure an
obligation for approximately $14,902,868.
David B. Golubchik, Esq., at Levene, Neale, Bender, Yoo & Brill
L.L.P., explained that the Debtor needs the money to fund its
Chapter 11 case, and pay suppliers and other parties. The Debtor
will use the collateral pursuant to a budget, a copy of which is
available for free at:
http://bankrupt.com/misc/SHILO_INN_KILLEEN_budget.pdf
The Debtor submits that Cathay is adequately protected by the use
of cash collateral by an equity cushion of approximately 32.3%.
In addition, Cathay will be further protected by the continuing
management and operation of the Debtor's hotel, thereby preserving
the value of its collateral.
As adequate protection of Cathay's interests, the Debtor will make
to Cathay the adequate protection payments. Cathay will be
granted replacement security interests and liens on all the
Debtor's assets and property.
As additional adequate protection, if and to the extent that the
Replacement Liens prove insufficient to adequately protect the
interests of Cathay in the cash collateral, then Cathay will be
granted a super-priority cost of administration claim.
The Debtor promises to provide Cathay monthly reports.
The Debtor anticipates certain cash shortfalls from operations in
the near future. Cashflow shortfalls are proposed to be covered
by a $100,000 credit line to be offered to the Debtor by Shilo
Franchise. The Debtor has authority to borrow up to $100,000 on a
junior basis to cover potential shortfalls in operations during
the bankruptcy period. The loan will accrue interest at the rate
of 5% per annum. Shilo Franchise has agreed to provide financing
on a junior secured basis, which does not impair Cathay's
interests herein.
A further hearing on the Debtor's request to use cash collateral
and obtain financing will be held on January 13, 2011, at
1:30 p.m.
Cathay is represented by Brandon J. Witkow, Esq. --
bwitkow@lockelord.com -- at Locke Lord Bissell & Liddell LLP.
About Shilo Inn
Portland, Oregon-based Shilo Inn, Killeen, LLC, filed for Chapter
11 bankruptcy on December 6, 2010 (Bankr. C.D. Calif. Case No.
10-62057). David B. Golubchik, Esq., and John-Patrick M. Fritz,
Esq., Levene Neale Bender Rankin Et Al, serve as bankruptcy
counsel. The Debtor estimated its assets and debts at $10 million
to $50 million.
Affiliate Shilo Inn, Diamond Bar, LLC (Bankr. C.D. Calif. Case No.
10-60884) filed separate Chapter 11 petition on November 29, 2010.
SPARTA COMMECIAL: Incurs $444,342 Net Loss for October 31 Quarter
-----------------------------------------------------------------
Sparta Commercial Services Inc. filed its quarterly report on
Form 10-Q, reporting a net loss of $444,342 on $164,835 of total
revenue for the three months ended Oct. 31, 2010, compared with
a net loss of $1.0 million on $188,546 of total revenues for the
same period a year ago.
The Company's balance sheet at Oct. 31, 2010, showed $2.11 million
in total assets, $4.52 million in total liabilities, and a
stockholders' deficit of $2.41 million.
A full-text copy of the quarterly report on Form 10-Q is available
for free at http://ResearchArchives.com/t/s?714e
About Sparta Commercial
Based in New York, Sparta Commercial Services, Inc.
-- http://www.spartacommercial.com/-- is a specialized consumer
finance company engaged primarily in the purchase of retail
installment sales contracts and the origination of leases to
assist consumers in acquiring new and used motorcycles (550cc and
higher), scooters, and 4-stroke ATVs.
The Company's balance sheet at July 31, 2010, showed $2.18 million
in total assets, $4.84 million in total liabilities, and a
stockholders' deficit of $2.66 million. The Company has an
accumulated deficit of $32.73 million as of July 31, 2010.
RBSM LLP, in New York, expressed substantial doubt about Sparta
Commercial Services, Inc.'s ability to continue as a going concern
following its results for the fiscal year ended April 30, 2010.
The independent auditors noted of the Company's recurring losses
from operations.
STEPHEN YELVERTON: Ch. 7 Trustee Substitutes as Plaintiff
---------------------------------------------------------
Judge S. Martin Teel, Jr., denied Stephen Thomas Yelverton's
motion to reconsider the Court's order substituting the Chapter 7
trustee as the plaintiff in place of the Debtor in the case
Wendell W. Webster, Trustee, v. Alexandra N. Senyi De Nagyu-Nyom,
et al., Adv. Pro. No. 09-10048 (D. D.C.).
Judge Teel said the Chapter 7 trustee is the party statutorily
empowered to pursue an avoidance action pursuant to a trustee's
avoidance powers under Chapter 5 of the Bankruptcy Code. With
very few exceptions, the avoidance powers are designed to benefit
the estate, not the debtor, Judge Teel said, citing Hansen v.
Green Tree Servicing, LLC (In re Hansen), 332 B.R. 8, 13 (10th
Cir. B.A.P. 2005), and may not be pursued by the Debtor even when
the trustee declines to pursue the avoidance powers.
A copy of Judge Teel's December 20, 2010 Memorandum Decision and
Order is available at http://is.gd/jhAuOfrom Leagle.com.
Stephen Yelverton, a minority shareholder in Yelverton Farms,
Ltd., filed for Chapter 11 bankruptcy protection (Bankr. D. D.C.
Case No. 09-00414) on May 14, 2009. Judge S. Martin Teel, Jr., on
August 20, 2010, denied confirmation of the Debtor's plan and
converted the case to Chapter 7.
STEPHEN YELVERTON: Fails in Bid to Pursue New Claims v. Chase
-------------------------------------------------------------
Judge S. Martin Teel, Jr., denied Stephen Thomas Yelverton's
motion to reconsider an order dismissing the adversary proceeding
as to Chase Home Finance, LLC. Judge Teel said the Court already
adjudicated the claims that the plaintiff had pursued as of the
Court's dismissal of the adversary proceeding as to Chase. After
the Court disposed of those claims, it is too late for the
plaintiff to ask the Court for permission to amend his amended
complaint to pursue new claims. That the new claims might arise
out of the same subject matter as that of the existing amended
complaint does not provide a basis for starting the adversary
proceeding over by allowing the plaintiff to assert the new claims
when the plaintiff failed to identify them and pursue them prior
to the Court's granting Chase's motion to dismiss.
The case is Stephen Thomas Yelverton, v. Homes at Potomac Greens
Associates, Limited Partnership, et al., Adv. Pro. No. 10-10001
(D. D.C.). A copy of Judge Teel's December 20, 2010 Memorandum
Decision is available at http://is.gd/jhylFfrom Leagle.com.
Stephen Yelverton, a minority shareholder in Yelverton Farms,
Ltd., filed for Chapter 11 bankruptcy protection (Bankr. D. D.C.
Case No. 09-00414) on May 14, 2009. Judge S. Martin Teel, Jr., on
August 20, 2010, denied confirmation of the Debtor's plan and
converted the case to Chapter 7.
STRAWBERRY PARK: Creditors File Involuntary Ch. 11 Petition
-----------------------------------------------------------
The Citizens National Bank, Richard I. Rothstein, and Joseph Biber
made an involuntary Chapter 11 filing against Strawberry Park RV
Resort, Inc. (Bankr. D. Conn. Case No. 10-24277) on December 17,
2010.
According to Greg Smith at Norwich Bulletin, the involuntary
filing came before the December 20 deadline set by the court to
move to a February 26, 2010 foreclosure sale. Preston Strawberry
Associates of Norwalk, which claims $3.4 million from Mr. Biber
from a defaulted loan, had secured the court agreement to avoid
any further delays.
Mr. Smith relates that the Strawberry Park campground, now being
run by a court-appointed management, already was the subject of
a more than $8 million court judgment in favor of TD Bank. A
previous manager reported to the court that Mr. Biber was
routinely overdrawing bank accounts, writing checks he could
not cover and digging himself deeper into debt.
Judge Albert S. Dabrowski presides the case. Mark E. Block, Esq.,
at Block Janney & Pascal LLC, represents the petitioners.
T3 MOTION: Files Preliminary S-1 Registration Statement
-------------------------------------------------------
In a Form S-1 filing with the Securities and Exchange Commission
on December 15, 2010, T3 Motion, Inc. said it may offer to sell
units of its securities. The prospectus left blank the amount of
shares to be registered and the proposed maximum offering price
per share. A copy of the preliminary prospectus is available for
free at http://ResearchArchives.com/t/s?7157
Costa Mesa, Calif.-based T3 Motion, Inc., was organized on
March 16, 2006, under the laws of the state of Delaware. The
Company develops and manufactures T3 Series vehicles, which are
electric three-wheel stand-up vehicles that are directly targeted
to the public safety and private security markets.
The Company's balance sheet as of September 30, 2010, showed
$3.81 million in total assets, $16.56 million in total
liabilities, and a stockholders' deficit of $12.75 million. At
September 30, 2010, the Company has an accumulated deficit of
$40.41 million, a working capital deficit of $14.32 million and a
cash balance of $40,966.
KMJ Corbin & Company LLP, in Costa Mesa, Calif., 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
significant operating losses and had negative cash flows from
operations since inception and at December 31, 2009, has a working
capital deficit of $11.01 million and an accumulated deficit of
TENET HEALTHCARE: Comments on CHS's Plan to Nominate Directors
--------------------------------------------------------------
Tenet Healthcare Corporation issued a statement regarding the
Community Health Systems Inc. announcement that it intends to
nominate a slate of director candidates to stand for election at
the Company's 2011 Annual Meeting of Shareholders.
The Company has not yet scheduled its 2011 Annual Meeting of
Shareholders:
We believe that Community Health intends to nominate candidates
for election to the Tenet Board of Directors solely to help
advance its inadequate and opportunistic proposal to acquire
Tenet. As announced on December 9, 2010, the Tenet Board,
after consultation with its financial and legal advisors,
unanimously determined that the Community Health proposal to
acquire Tenet for $6.00 per share in cash and stock grossly
undervalued Tenet and was not in the best interests of Tenet or
its shareholders.
Tenet shareholders -- not Community Health -- deserve to
benefit from Tenet's growth as we continue to expand margins
and benefit from the strategic investments we are making in our
business. We are confident that the continued execution of our
plan will deliver significantly more value to our shareholders
than Community Health's inadequate proposal.
Tenet has compelling growth prospects and a strong Board of
Directors with a broad range of experience. Under the Board's
leadership, Tenet has delivered strong growth for more than
five years, demonstrating that our strategy is working. Going
forward, we expect significant growth from a combination of
acute care revenues, our expanding outpatient business, our
business of offering healthcare services to other hospitals,
and improved cost efficiencies. As always, we remain focused
on executing our core business plan and providing the highest
quality care and good value to our customers.
Tenet's Board is comprised of 10 highly qualified directors, nine
of which are independent, and all of whom are elected annually.
Barclays Capital is acting as financial advisor to Tenet and
Gibson, Dunn & Crutcher LLP and Debevoise & Plimpton LLP are
acting as Tenet's legal counsel.
About Tenet Healthcare
Dallas, Texas-based Tenet Healthcare Corporation (NYSE: THC) --
http://www.tenethealth.com/-- is a health care services company
whose subsidiaries and affiliates own and operate acute care
hospitals, ambulatory surgery centers and diagnostic imaging
centers.
The Company's balance sheet at Sept. 30, 2010, showed $8.53
billion in total assets, $6.77 billion in total liabilities, and
stockholders' equity of $1.76 million.
* * *
As reported by the TCR on Aug. 5, 2010, Moody's Investors Service
affirmed its "B2" corporate family rating for Tenet. The rating
reflects Moody's expectation that the Company will likely see
positive free cash flow for the full year ending December 31,
2010, as operating results continue to improve and litigation
settlement payments end in the third quarter. However, the
ratings also consider the significant headwinds facing the
company, and the sector as a whole, with respect to increasing bad
debt expense, weak volume trends and changes in mix as commercial
volumes decline.
S&P's corporate credit rating on Tenet is 'B' and remains
unchanged. The ratings agency noted that while the Company has
experience recent successes to date of a multiyear turnaround
effort, the Company has a still-weak business risk profile and
high financial leverage.
Fitch Ratings has issued its Recovery Rating review of the U.S.
Healthcare sector. This review includes an analysis of valuation
multiples, EBITDA discounts applied, and detailed recovery
worksheets for issuers with a Fitch Issuer Default Rating of 'B+'
or lower in this sector.
Fitch Ratings has placed Tenet Healthcare Corp.'s ratings on
Rating Watch Positive. Tenet's existing ratings are Issuer
Default Rating 'B-'; Secured bank facility 'BB-/RR1'; Senior
secured notes 'BB-/RR1'; Senior unsecured notes 'B/RR3. The
ratings apply to approximately $4.3 billion of debt
outstanding as of Sept. 30, 2010.
TERRESTAR NETWORKS: Battles With Creditors on Plan Backstop
-----------------------------------------------------------
TerreStar Networks Inc. and certain of their creditors are arguing
on who should backstop the rights offering contemplated under the
TSN Debtors' Chapter 11 Plan of Reorganization.
The Debtors filed with the Court an omnibus response to the
objections of (i) the Official Committee of Unsecured Creditors;
(ii) Harbinger Capital Partners Master Fund I, Ltd. and Credit
Distressed Blue Line Master Fund, Ltd.; and (iii) the ad hoc
committee of 15% senior secured payment in kind noteholders to
the TSN Debtors' request to approve the Equity Purchase and
Commitment Agreement with EchoStar Corporation.
Ira S. Dizengoff, Esq., at Akin Gump Strauss Hauer & Feld LLP, in
New York, tells Judge Lane that EchoStar has agreed to make
improvements to the proposed Backstop Agreement. Since the TSN
Debtors still do not have any other actual commitment, he
maintains that entry into the Amended EchoStar Backstop Agreement
is a sound exercise of the TSN Debtors' business judgment.
The objections to the EchoStar Backstop Agreement generally fall
into three categories: (1) objections regarding the economic
terms of the Backstop Agreements, (2) objections regarding the
confirmability of and EchoStar's alleged control over the Plan,
and (3) objections regarding the timing of the hearing on the
Backstop Motion.
Mr. Dizengoff reveals that after the TSN Debtors received the
Objections and the alternative backstop proposal from the Ad Hoc
Noteholder Group, EchoStar approached the TSN Debtors with an
Amended Backstop Agreement. He relates that the TSN Debtors
obtained significant improvements and revisions to the Original
Backstop Agreement, including, but not limited to, these terms:
(1) Any 15% Senior Secured Noteholder may elect to, on a pro
rata basis according to the amount of its holdings,
participate in: (i) a backstop of the entire $125 million
Rights Offering; (ii) the Overallotment; and (iii) the
Right of First Refusal that may become available with
respect to unsubscribed and non-backstopped shares; and
(2) Any 15% Senior Secured Noteholder that agrees to
participate in the backstop or the Overallotment will be
entitled to earn a fee equal to 3% of its aggregate
purchase commitment.
A redlined copy of the EchoStar Amended Backstop Agreement is
available for free at:
http://bankrupt.com/misc/TrStrAmBakstpAgm.pdf
The Backstop Agreement improvements resolve many of the
objections and further establish that the Amended Backstop
Agreement is reasonable and appropriate, Mr. Dizengoff asserts.
To the contrary, Mr. Dizengoff argues, even before the
improvements to the Amended Backstop Agreement were obtained, the
Ad Hoc Group's Alternative Proposal was nowhere near as favorable
as EchoStar's Original Backstop Agreement. "The Ad Hoc Group's
Alternative Proposal is uncommitted, unsigned and anonymous," he
says.
He adds that even if the Ad Hoc Group's Alternative Proposal was
committed, it purportedly would come with a proposed "priming"
DIP financing, to replace the TSN Debtors' current "junior" DIP
Financing, that is (i) uncommitted, (ii) requires a "priming"
fight, and (iii) is in an amount insufficient to repay the
current EchoStar DIP Financing.
Mr. Dizengoff also argues that the Ad Hoc Group's Alternative
Proposal actually provides less of a rights offering to all other
stakeholders and more value to its backstoppers than the Original
Backstop Agreement.
"Aside from the Alternative Proposal, the Ad Hoc Group's
objection is careful not to upset the apple cart because the Ad
Hoc Group's constituents largely benefit from the economics in
the Backstop Motion and the economics upon which the Plan is
based," Mr. Dizengoff says. The Ad Hoc Group, he points out, has
no objection to the market discount purchase price because the
discount purchase price inures to their benefit.
To the extent Harbinger's and the Creditors Committee's
objections are not mooted by the Amended Backstop Agreement, Mr.
Dizengoff asserts that they should be overruled.
Ad Hoc Group Supplements Objection;
Modifies Backstop Proposal
On behalf of the Ad Hoc Group, Jonathan S. Henes, Esq., at
Kirkland & Ellis LLP, in New York, contends that process matters
in a large Chapter 11 case with multiple stakeholders with
varying interests, and yet EchoStar is using its disproportionate
influence -- as the Debtors' plan sponsor and DIP lender -- to
direct the Debtors to use speed as a tactic by seeking approval
of the EchoStar backstop agreement on an expedited basis.
Accordingly, the Ad Hoc Group asks Judge Lane to deny the Amended
Backstop Agreement because it fails even to achieve its purported
goal of facilitating the pending plan of reorganization.
The Amended Backstop Agreement also obligates the Debtors to pay
fees and expenses for an amount of committed financing that is
less than what the EchoStar Plan assumes will be available to the
Debtors, Mr. Henes points out.
Mr. Henes argues that the Debtors are being directed by EchoStar
to push forward with the Amended Backstop Agreement despite
evidence there may be a value-maximizing sale alternative if
there is meaningful opportunity for such a process, and despite
the Ad Hoc Group having offered the Debtors a viable alternative
to the EchoStar Backstop that provides the Debtors and all of
their stakeholders with the opportunity to shift the Chapter 11
cases to a better path and conduct them in accordance with a
better process.
According to Mr. Henes, since the hearing on December 10, 2010,
the Ad Hoc Group has communicated with the Debtors regarding the
terms of the Alternative Backstop originally proposed as part of
the Group's Objection to the EchoStar Backstop. In response to
the Debtors' comments and concerns, the Ad Hoc Group has improved
the terms of the Alternative Backstop, he adds.
The Ad Hoc Group believes the Modified Alternative Backstop is
superior to the EchoStar Backstop in a number of respects, like
the input of more capital to the Debtors' estates.
The amended term sheet for the Alternative Backstop Agreement of
the Ad Hoc Group includes these terms:
1. The Debtors' Rights Offering will be fully backstopped in
the amount of $125 million by certain members of the Ad Hoc
Group without a set-aside for the Backstop Parties;
2. Meaningful minority shareholder protections for future
shareholders of the Debtors;
3. Sufficient time to allow the Debtors to pursue a robust
sale process, which includes an adjournment of the hearing
to consider the Disclosure Statement for a period of at
least 30 calendar days; and
4. A replacement priming DIP facility in connection with the
Modified Alternative Backstop, if necessary.
A blackline version of the term sheet summarizing the terms of
the Modified Alternative Backstop against the version filed with
the Court on December 9, 2010, is available for free at:
http://bankrupt.com/misc/TrStrAdHocTrmShtBak-Am.pdf
A blackline version of the Modified Alternative Backstop
Agreement against the Original Alternative Backstop Agreement is
available for free at:
http://bankrupt.com/misc/TrStrAdHocBak-Am-Blk.pdf
A blackline version of the Modified Alternative Backstop
Agreement against the EchoStar Backstop Agreement is available
for free at:
http://bankrupt.com/misc/TrStrAdHocBak-Am-wEchStr-Blk.pdf
About TerreStar Networks
Reston, Va.-based TerreStar Corporation (NASDAQ: TSTR)
-- http://www.terrestar.com/-- is in the mobile communications
business through its ownership of TerreStar Networks, its
principal operating subsidiary, and TerreStar Global.
TerreStar Networks, in cooperation with its Canadian partners,
TerreStar Canada and TerreStar Solutions, majority-owned
subsidiaries of Trio 1 and 2 General Partnerships, plans to launch
an innovative wireless communications system to provide mobile
coverage throughout the United States and Canada using integrated
satellite-terrestrial smartphones and other devices. This system
build out will be based on an integrated satellite and ground-
based technology intended to provide communication service in most
hard-to-reach areas and will provide a nationwide interoperable,
survivable and critical communications infrastructure. The
Company intends to provide multiple communications applications,
including voice, data and video services.
As of June 30, 2010, the Company had four wholly owned
subsidiaries, MVH Holdings Inc., Motient Holdings Inc., TerreStar
Holdings Inc., and TerreStar New York Inc. Motient Ventures
Holding Inc., a wholly owned subsidiary of MVH Holdings Inc.,
directly holds approximately 89.3% and 86.5% interest in TerreStar
Networks and TerreStar Global, respectively.
TerreStar Networks Inc. and Its affiliates filed voluntary
petitions for relief under Chapter 11 of the United States
Bankruptcy Code in Manhattan (Bankr. S.D.N.Y. Lead Case No.
10-15446).
The Debtors' parent, TerreStar Corporation (NASDAQ: TSTR), is not
among the Chapter 11 filers.
The Garden City Group, Inc., will act as claims and noticing agent
in the Chapter 11 cases. Michel Wunder, Esq., Ryan Jacobs, Esq.,
and Jarvis Hetu, Esq. at Fraser Milner Casgrain LLP and Ira
Dizengoff, Esq., Arik Preis, Esq., and Ashleigh Blaylock, Esq.,
at Akin Gump Strauss Hauer & Feld LLP, serve as bankruptcy
counsel to the Debtors. Blackstone Advisory Partners LP is the
financial advisor.
Bankruptcy Creditors' Service, Inc., publishes TerreStar
Bankruptcy News. The newsletter tracks the Chapter 11 proceeding
undertaken by TerreStar Networks Inc. and its affiliates.
(http://bankrupt.com/newsstand/or 215/945-7000)
TERRESTAR NETWORKS: Fails to Get Prompt Approval of Plan Outline
----------------------------------------------------------------
TerreStar Networks, Inc.; Terrestar National Services, Inc.;
0887729 B.C. Ltd.; Terrestar License, Inc.; Terrestar Networks
Holdings (Canada), Inc.; and Terrestar Networks (Canada) Inc.
failed to obtain a final ruling on the adequacy of the Disclosure
Statement outlining their Amended Chapter 11 Plan of
Reorganization.
The hearing to consider the Disclosure Statement was originally
scheduled for December 10, 2010. At that hearing date, however,
Judge Sean Lane for the U.S. Bankruptcy Court for the Southern
District of New York deemed it best to continue the hearing until
December 20, saying "the current schedule was a better fit to a
pre-negotiated bankruptcy rather than a contested one," The
International Business Times related in a December 10 report.
The Disclosure Statement hearing has been further adjourned since
then, and the Court has not entered a final decision to date.
Several creditors have filed with the Court formal objections to
the Disclosure Statement and Plan based on the valuation of the
TSN Debtors' assets; how those valuations affect creditor
recovery; and the relatively short time TerreStar is pushing for
approval of the Disclosure Statement.
The Objecting Creditors include Harbinger Capital Partners, who
hold a major portion of TerreStar's 6.5% notes; Sprint Nextel
Corporation, an ad hoc noteholder group; Deutsche Bank National
Trust Company, as indenture trustee for certain senior
exchangeable notes; Solus Alternative Asset Management LP; and
the Official Committee of Unsecured Creditors.
The Creditors' objections were to be taken up at the December 10
hearing.
IBTimes related that Harbinger sought more information for
creditors to do a complete economic analysis for TerreStar
because there just isn't enough information to make one.
TerreStar refuted Harbinger's contentions. Counsel to TerreStar,
Arik Preis, Esq., at Akin Gump Strauss Hauer & Feld LLP, in New
York, noted that Harbinger is one of most active traders of
TerreStar debt based on Securities and Exchange Commission
filings, according to IBTimes, and thus should know more than
what it professes to know. Moreover, Sprint Nextel asserted that
TerreStar owes it a $100 million lien on certain services.
All the Creditors complained that "in attempting to deal with the
objections in a shortened time frame, TerreStar has ended up
submitting no less than three revisions to the disclosure
statement in the space of a week," IBTimes reported.
Subsequently, on December 17, TSN and five of its debtor
affiliates delivered to the Court a fourth amended version of
their Plan of Reorganization. As with the previous plan
versions, the Fourth Amended Plan continues to contemplate (1)
the conversion of TerreStar's secured debt into equity, and (2)
the conduct of a rights offering to fund the Company's exit from
bankruptcy. About 97% of new equity would be distributed to
secured debt holders and the rest would go to unsecured
creditors.
EchoStar Corporation owns a majority of TerreStar's $1.25 billion
secured debt and thus, is anticipated to get a major stake in the
reorganized company. EchoStar has also agreed to backstop
$100 million of the rights offering contemplated under the Plan.
At the December 20 hearing, TerreStar and the Objecting Creditors
continued to argue their position on the Plan before Judge Lane.
Parties Fight Over Competing Backstop Plans
Also at the December 20 hearing, TerreStar and the Objecting
Creditors fought over who should be the appropriate party to
backstop the plan-related rights offering, according to Joseph
Checkler of Dow Jones Daily Bankruptcy Review.
TerreStar stands firm in its request for approval of a deal by
which EchoStar will backstop $100 million of the contemplated
rights offering. An ad hoc noteholder group has proposed an
alternative backstop agreement. The alternative deal provides
that the ad hoc group will backstop the entire $125 million
rights offering with lower fees, Dow Jones related.
TerreStar's counsel noted at the hearing that the ad hoc group's
backstop proposal doesn't represent a firm commitment, Dow Jones
specified. The report also noted that the alternative backstop
deal was not considered at the December 20 hearing.
After hearing the parties' arguments, Judge Lane further
postponed decision on the Disclosure Statement and the Backstop
Agreement through the next scheduled hearing on December 22, at
11:00 a.m. prevailing Eastern Time.
Modifications Under 4th Amended Plan
The Fourth Amended Plan and Disclosure Statement were filed to
reflect events that have transpired since the filing of the
original Plan documents; modify, add or amend certain language on
account of comments received from various parties-in-interest in
the TSN Debtors' Chapter 11 cases; and correct various clerical
and typographical errors. The Amended Plan documents include
these modifications:
A. Separate Plans.
A clarification that the Plan constitutes a separate Chapter
11 plan of reorganization for each TSN Debtor.
B. Claims Classification.
A revised table summarizing the classification and
description of claims and interests. The Fourth Amended
Plan designates 10 classes of claims and interests, as
compared to eight claim classes in previous versions of the
Plan.
Classes 8 and 10 are the recently added categories of claims
and interests. Class 6 Unsecured Claims are further
categorized into each specific TSN Debtor.
The revised Class of Claims and Interests are:
Class Name
----- ----
1 Other Priority Claims
2 Other Secured Claims
3 Senior Secured Notes Claims
4 PMCA Claims
5 Senior Exchangeable Notes Claims
6(a) Other Unsecured Claims vs TSN
6(b) Other Unsecured Claims vs 0887729 B.C. Ltd.
6(c) Other Unsecured Claims vs TerreStar License Inc
6(d) Other Unsecured Claims vs TerreStar Natl Services Inc
6(e) Other Unsecured Claims vs TSN (Canada)
6(f) Other Unsecured Claims vs TSN Holdings (Canada)
7 Unsecured Convenience Claims
8 Senior Secured Notes Deficiency Claims
9 Equity Interests
10 Interests in 0887729 B.C. Ltd.
All classes of claims and interests are impaired except for
Classes 1, 2, 4, 6(b), and 10.
Only Classes 3, 5, 6(a), and 7 have voting rights with
respect to the Plan.
Holders of claims under Classes 6(a) and 6(b) will receive
their pro rata share of the Class 6 distribution. There
will be no distribution to holders of claims under Classes
6(c) through 6(f).
Each holder of an Allowed Class 8 Claim will also receive
its pro rata share of the Class 8 distribution.
Holders of Class 10 Interests will have their interests
reinstated, which have a value equal to $38 million less the
amount of the Class 6(b) Distribution.
C. Class 6(a) Treatment.
The addition of an explanation that in lieu of holders of
Allowed Class 6(a) Claims receiving Rights to participate in
the Rights Offering, holders of Allowed Class 6(a) Claims
will be receiving New Common Stock equal to the value of the
Rights they otherwise would have received. Holders of
Allowed Class 6(a) Claims will receive value without having
to contribute cash in exchange for their shares. Rather,
the claimants will receive a reduced number of shares
reflecting the fact that they did not have to pay the
Discount Purchase Price for their shares.
In the aggregate, approximately 48,000 shares worth
$1.9 million are to be provided to the holders of Allowed
Class 6(a) Claims as a result of the determination to provide
Allowed Class 6(a) Claims New Common Stock equal to the
value of the Rights they would otherwise have received
in lieu of such Rights.
D. Backstop Party.
A clarification that "Backstop Party" refer to EchoStar and
if applicable, any holder of Senior Secured Notes that
executes the Equity Purchase Commitment Agreement before
Dec. 31, 2010.
E. Spectrum Lease Payments.
The addition of a note that Spectrum Lease payments were
originally $1 million per month through June 2010. Upon
receipt of the funds from Harbinger, TerreStar 1.4 Holdings
LLC paid a dividend to its 100% shareholder TerreStar
Holdings Inc., in the amount of the funds received.
TerreStar Holdings Inc. then made an intercompany loan to
Motient Ventures Holding Inc. in the amount of approximately
$32 million. Motient Ventures Holding Inc. then made a
capital contribution to TSN, its 89.3% owned subsidiary of
approximately $32 million (such capital contribution
inured to the benefit of Motient Ventures Holdings Inc. by
increasing the value of its equity in TSN). The TSN Debtors
understand that certain creditors have raised the issue as
to whether some or all of these transfers may be subject to
recharacterization or avoidance. Specifically, certain of
the preferred shareholders of TSC and parties-in-interest in
the Non-TSN Debtors' cases have asserted that because
Motient Ventures Holding Inc. allegedly had negative equity
in TSN before and after the capital contribution, the
capital contribution allegedly did not inure to the benefit
of Motient Ventures Holding Inc. as an equityholder of TSN.
Therefore, certain parties assert that any alleged increase
in equity value is not a defense to a fraudulent transfer
claim.
Redlined versions of the 4th Amended Plan and Disclosure
Statement are available for free at:
http://bankrupt.com/misc/TrStr4thAmPlan.pdf
http://bankrupt.com/misc/TrStr4thAmDS.pdf
In a separate filing, TerreStar submitted exhibits to the
Disclosure Statement, namely:
-- Exhibit C: Organizational Chart;
-- Exhibit D: Liquidation Analysis;
-- Exhibit E: Financial Projections;
-- Exhibit F: Valuation Analysis;
-- Exhibit J: Summary Chart of Intercompany Transfers;
-- Exhibit K: Form Sales/Marketing Process Letter;
-- Exhibit L: Notice of Marketing of TSN Debtors' Assets
-- Exhibit N: Equity Term Sheet;
-- Exhibit O: Joinder; and
-- Exhibit P: Allocations Analysis.
Copies of the Exhibits are available for free at:
http://bankrupt.com/misc/TrStr4thAmDSExh.pdf
More Objections to Disclosure Statement
In separate filings, the Official Committee of Unsecured
Creditors; Solus Alternative Asset Management LP, Sprint Nextel
Corporation; and The Ad Hoc Group of Holders of 15% Senior
Secured Notes submitted supplements to their objections to the
TSN Debtors' Disclosure Statement.
The Supplemental Objections were filed after the TSN Debtors
submitted a fourth amended Chapter 11 Plan of Reorganization and
Disclosure Statement dated December 17, 2010.
The Objecting Parties assert that the Court should adjourn the
hearing to January 2011 to allow sufficient time for the Debtors'
sale process to mature, and to ensure that strategic investors
will view the sale process as a true viable alternative to a
stand-alone reorganization.
On behalf of the Ad Hoc Group, Jonathan S. Henes, Esq., at
Kirkland & Ellis LLP, in New York, notes that the Ad Hoc Group
has provided a solution to ensure that an alternative path can be
pursued -- the Ad Hoc Group filed a notice that it has modified
its offer of an Alternative Backstop, which includes the terms
for a modified, fully committed alternative backstop arrangement
for the Debtors' rights offering.
"The Modified Alternative Backstop allows the Debtors an
additional, necessary time for the sale process to develop and
specifically contemplates a 30 day adjournment of the Disclosure
Statement hearing," Mr. Henes says.
If, however, the Court allows the Disclosure Statement hearing to
go forward, the Ad Hoc Group asks that additional disclosure be
provided regarding:
-- an update on the sale process, including the current status
and a description of what the Plan would provide if the
Debtors' assets were sold for an amount in excess of the
amount owed to holders of the 15% Notes; and
-- a statement indicating that, as of the date of the
Disclosure Statement, the Ad Hoc Group does not support the
Plan for these reasons:
(a) The Plan does not provide sufficient time for an
appropriately robust sale process;
(b) The Plan does not provide the Ad Hoc Group with
meaningful minority shareholder rights; and
(c) No information has been provided regarding the
Debtors' post-emergence business plan and what
EchoStar Corporation intends to do with the business
as the new majority shareholder under the Plan.
The Creditors' Committee aver that it was surprised that the
Debtors filed a substantially revised Disclosure Statement and
Plan late Friday evening on December 17. Counsel to the
Committee, David M. Posner, Esq., at Otterbourg Steindler Houston
& Rosen P.C., in New York, contends that not only does the Fourth
Amended Disclosure Statement contain inadequate disclosure in
many areas suggested by the Court, but it now contains material
changes including some directly impacting general unsecured
creditors -- many of which were included without previously
consulting with the Committee's professionals.
Sprint Nextel, for its part, asserts that it has not had
sufficient time to fully analyze the Amended Plan or to identify
all potential issues raised by the new Plan and Disclosure
Statement, having been provided only one business day to consider
the new Plan documents. "Until all issues can be identified, it
is premature to discuss an appropriate litigation schedule," Eric
T. Moser, Esq., at K&L Gates LLP, in New York, counsel to Sprint
Nextel, argues.
Counsel to Solus Alternative, Susheel Kirpalani, Esq., at Quinn
Emanuel Urquhart & Sullivan LLP, in New York, emphasizes that
"while it is not uncommon for a disclosure statement to undergo
revisions after being filed with the Court, the wholesale changes
to the Disclosure Statement and the underlying Plan proposed by
the Debtors in the cases far exceed the boundaries of what is
acceptable.
About TerreStar Networks
Reston, Va.-based TerreStar Corporation (NASDAQ: TSTR)
-- http://www.terrestar.com/-- is in the mobile communications
business through its ownership of TerreStar Networks, its
principal operating subsidiary, and TerreStar Global.
TerreStar Networks, in cooperation with its Canadian partners,
TerreStar Canada and TerreStar Solutions, majority-owned
subsidiaries of Trio 1 and 2 General Partnerships, plans to launch
an innovative wireless communications system to provide mobile
coverage throughout the United States and Canada using integrated
satellite-terrestrial smartphones and other devices. This system
build out will be based on an integrated satellite and ground-
based technology intended to provide communication service in most
hard-to-reach areas and will provide a nationwide interoperable,
survivable and critical communications infrastructure. The
Company intends to provide multiple communications applications,
including voice, data and video services.
As of June 30, 2010, the Company had four wholly owned
subsidiaries, MVH Holdings Inc., Motient Holdings Inc., TerreStar
Holdings Inc., and TerreStar New York Inc. Motient Ventures
Holding Inc., a wholly owned subsidiary of MVH Holdings Inc.,
directly holds approximately 89.3% and 86.5% interest in TerreStar
Networks and TerreStar Global, respectively.
TerreStar Networks Inc. and Its affiliates filed voluntary
petitions for relief under Chapter 11 of the United States
Bankruptcy Code in Manhattan (Bankr. S.D.N.Y. Lead Case No.
10-15446).
The Debtors' parent, TerreStar Corporation (NASDAQ: TSTR), is not
among the Chapter 11 filers.
The Garden City Group, Inc., will act as claims and noticing agent
in the Chapter 11 cases. Michel Wunder, Esq., Ryan Jacobs, Esq.,
and Jarvis Hetu, Esq. at Fraser Milner Casgrain LLP and Ira
Dizengoff, Esq., Arik Preis, Esq., and Ashleigh Blaylock, Esq.,
at Akin Gump Strauss Hauer & Feld LLP, serve as bankruptcy
counsel to the Debtors. Blackstone Advisory Partners LP is the
financial advisor.
Bankruptcy Creditors' Service, Inc., publishes TerreStar
Bankruptcy News. The newsletter tracks the Chapter 11 proceeding
undertaken by TerreStar Networks Inc. and its affiliates.
(http://bankrupt.com/newsstand/or 215/945-7000)
TERRESTAR NETWORKS: MetroPCS Might Bid for Assets
-------------------------------------------------
MetroPCS Communications, Inc., is reportedly interested in
acquiring certain assets of TerreStar Networks, Inc., according
to The Wall Street Journal, citing people familiar with the
matter.
MetroPCS is said to have its eyes on TerreStar's license to use
certain pieces of radio spectrum which allows transmission of
high-speed data or the so-called 4G networks, WSJ relates.
The restructuring plan proposed by TSN and its debtor affiliates
value the company at $1.22 billion, so a bidder for the TerreStar
assets must be prepared to top that amount and provide a
replacement bankruptcy loan to the one EchoStar Corporation is
currently providing to the TSN Debtors, Mike Spector and
Anupreeta Das of WSJ report.
Final bids are due January 24, WSJ states. TerreStar is
exploring a sale of its assets simultaneous with its proposed
restructuring plans in an effort to maximize value for its
creditors, the report cites.
About TerreStar Networks
Reston, Va.-based TerreStar Corporation (NASDAQ: TSTR)
-- http://www.terrestar.com/-- is in the mobile communications
business through its ownership of TerreStar Networks, its
principal operating subsidiary, and TerreStar Global.
TerreStar Networks, in cooperation with its Canadian partners,
TerreStar Canada and TerreStar Solutions, majority-owned
subsidiaries of Trio 1 and 2 General Partnerships, plans to launch
an innovative wireless communications system to provide mobile
coverage throughout the United States and Canada using integrated
satellite-terrestrial smartphones and other devices. This system
build out will be based on an integrated satellite and ground-
based technology intended to provide communication service in most
hard-to-reach areas and will provide a nationwide interoperable,
survivable and critical communications infrastructure. The
Company intends to provide multiple communications applications,
including voice, data and video services.
As of June 30, 2010, the Company had four wholly owned
subsidiaries, MVH Holdings Inc., Motient Holdings Inc., TerreStar
Holdings Inc., and TerreStar New York Inc. Motient Ventures
Holding Inc., a wholly owned subsidiary of MVH Holdings Inc.,
directly holds approximately 89.3% and 86.5% interest in TerreStar
Networks and TerreStar Global, respectively.
TerreStar Networks Inc. and Its affiliates filed voluntary
petitions for relief under Chapter 11 of the United States
Bankruptcy Code in Manhattan (Bankr. S.D.N.Y. Lead Case No.
10-15446).
The Debtors' parent, TerreStar Corporation (NASDAQ: TSTR), is not
among the Chapter 11 filers.
The Garden City Group, Inc., will act as claims and noticing agent
in the Chapter 11 cases. Michel Wunder, Esq., Ryan Jacobs, Esq.,
and Jarvis Hetu, Esq. at Fraser Milner Casgrain LLP and Ira
Dizengoff, Esq., Arik Preis, Esq., and Ashleigh Blaylock, Esq.,
at Akin Gump Strauss Hauer & Feld LLP, serve as bankruptcy
counsel to the Debtors. Blackstone Advisory Partners LP is the
financial advisor.
Bankruptcy Creditors' Service, Inc., publishes TerreStar
Bankruptcy News. The newsletter tracks the Chapter 11 proceeding
undertaken by TerreStar Networks Inc. and its affiliates.
(http://bankrupt.com/newsstand/or 215/945-7000)
THOMAS FELLURE: Case Summary & 20 Largest Unsecured Creditors
-------------------------------------------------------------
Debtor: Thomas Greg Fellure
dba Felco Leasing & Equipment
dba Eastern State's Pump & Equipment
dba Pipe Layers Utilities & Construction
Sherry Lee Fellure
fka Sherry Elliott Fellure
fka Sherry Elliott Booton
2184 Route 75
Kenova, WV 25530
Bankruptcy Case No.: 10-31006
Chapter 11 Petition Date: December 21, 2010
Court: United States Bankruptcy Court
Southern District of West Virginia (Huntington)
Judge: Ronald G. Pearson
Debtor's Counsel: Mitchell Lee Klein, Esq.
KLEIN LAW OFFICE
3566 Teays Valley Road
Hurricane, WV 25526
Tel: (304) 562-7111
Fax: (304) 562-7115
E-mail: sydney@kleinhall.com
Scheduled Assets: $851,751
Scheduled Debts: $9,233,189
A list of the Joint Debtors' 20 largest unsecured creditors
filed together with the petition is available for free
at http://bankrupt.com/misc/wvsb10-31006.pdf
THOMAS GRABANSKI: Could Not File Plan Until January 7
-----------------------------------------------------
Mikkel Pates at Agweek reports that Tom Grabanski filed a request
to extend the plan filing deadline until Jan. 7, 2010, and solicit
acceptances of that plan to Jan. 21, 2010.
Based in Grafton, North Dakota, Thomas M. Grabanski and Mari K.
Grabanski aka Grabanski Grain LLC filed for Chapter 11 bankruptcy
protection on July 22, 2010 (Bankr. D. N.D. Case No. 10-30902).
Judge William A. Hill presides the case. DeWayne Johnston, Esq.,
at Johnston Law Office, represents the Debtor. The Debtor
estimated assets of between $1 million and $10 million, and debts
of $10 million and $50 million.
TONGJI HEALTHCARE: Weidong Huang Resigns as CFO
-----------------------------------------------
Weidong Huang resigned as Chief Financial Officer of Tongji
Healthcare Group Inc. for personal reasons on December 20, 2010.
Mr. Huang's resignation is not in connection with any known
disagreement with the Company on any matter.
Based in Nanning, Guangxi, the People's Republic of China, Tongji
Healthcare Group, Inc., was incorporated in the State of Nevada on
December 19, 2006. The Company operates Tongji Hospital,
a general hospital with 105 licensed beds.
As reported in the Troubled Company Reporter on April 22, 2010,
Kabani & Company, Inc., 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 that
of the Company's significant operating losses and insufficient
capital.
TOWNSENDS INC: Obtains $52MM DIP Loan From Wilmington Trust
-----------------------------------------------------------
Townsends Inc., et al. ask the U.S. Bankruptcy Court for the
District of Delaware for authorization to:
-- obtain debtor-in-possession financing from Wilmington Trust
Company, as administrative and facility agent, and the
lender parties;
-- use cash collateral of prepetition bank group agent and
prepetition bank group lenders;
-- allow superpriority administrative expense claim status for
all obligations owing under the DIP documents;
-- grant the DIP lenders automatically perfected security
interests in and liens upon all of the collateral; and
-- pay the principal, interest, fees, expenses and other
amounts payable under the DIP documents.
As of the Petition Date, the aggregate outstanding principal and
accrued interest under the loan agreement is roughly $20.70
million -- plus $12.08 million in commitments with respect to
letters of credit -- with regard to the term loan and roughly
$40.00 million with regard to the revolver.
To secure the revolver and the term loan, the Debtors granted the
bank group -- Wilmington, Greenstone Farm Credit Services,
ACA/FLA, Agstar Financial Services, PCA, and PNC Bank, N.A. --
first priority liens, mortgages and security interests in
substantially all of the Debtors' assets, including without
limitation, accounts, raw materials, farm products, receivables,
real property, rents and personal property.
As of the Petition Date, the Debtors' other debts consist of:
1. $8.30 million to the Noteholders -- John Hancock Life
Insurance Company (U.S.A.), John Hancock Insurance Company
of Vernon and John Hancock Life & Health Insurance Company;
2. $2.9 million to the The Chatham County Industrial Facilities
and Pollution Control Financing Authority; and
3. approximately $9.2 million to the Independence County,
Arkansas.
The Debtors would use the financing and cash collateral to
maintain their operations; maintain business relationships with
their vendors, suppliers, and customers; and pay their employees.
Terms of DIP Financing
Facility Amount: Senior secured superpriority debtor-in-
possession credit facility in the form of a
revolving credit facility of up to
$12 million of new borrowings with a roll
up of $40 million prepetition revolver.
The administrative agent and DI lenders
will advance up to $47 million upon the
entry to the interim order.
Interest Rates Subject to the default rate interest
provision, the DIP credit agreement will
bear interest at a rate per annum equal to
LIBOR plus 6.7% with a LIBOR floor of 2.5%.
Term: The DIP loans will be repaid in full at the
earliest of (i) 90 days after the closing
date of the DIP advance under the interim
DIP order; (ii) the termination date; or
(iii) March 29, 2011.
Fees: Facility Fee equal to 1.5% of the $12
million of new borrowings under the DIP
credit agreement.
Administration Fee payable to the
administrative agent in the amount of
$5,000 per month.
Collateral All tangible and intangible property and
assets of the Debtors.
About Townsends Inc.
Founded in 1891, Townsends Inc., fka Townsend Speciality Foods, is
a third-generation, family-owned poultry company. Townsends
claims to be a leading producer and marketer of quality, value
added poultry products to the foodservice and retail grocery
markets throughout the world. Headquartered in Georgetown,
Delaware, Townsends operates, directly or through its four wholly-
owned subsidiaries, production and processing facilities in
Arkansas and North Carolina. As of December 8, 2010, Townsend had
3,017 employees.
Townsends filed for Chapter 11 bankruptcy protection on
December 19, 2010 (Bankr. D. Del. Case No. 10-14092). In its
Chapter 11 petition, Townsends, Inc., estimated assets of
$10 million to $50 million and debts of $50 million to
$100 million.
Affiliates Townsend Farms, Inc (Bankr. D. Del. Case No. 10-14093),
Townsends of Arkansas, Inc. (Bankr. D. Del. Case No. 10-14094),
Townsend Farms of Arkinsas, Inc. (Bankr. D. Del. Case No. 10-
14095), and CrestwoodFarms LLC (Bankr. D. Del. Case No. 10-14096)
filed separate Chapter 11 petitions.
The Debtors disclosed $131 million in total assets and
$127 million in total debts as of December 5, 2010.
Derek C. Abbott, Esq., at Morris Nichols Arsht & Tunnell, serves
as the Debtors' bankruptcy counsel. McKenna Long & Aldridge LLP
serves as the Debtors' special counsel. Donlin Recano is the
Debtors' claims agent.
TRIBUNE CO: Baltimore Sun Signs Accord With Ivan Bates
------------------------------------------------------
Pursuant to the terms of an order authorizing Tribune Co. and its
units to settle disputed claims on November 30, 2010, debtor The
Baltimore Sun Company and Ivan J. Bates entered into a Settlement
Agreement and Mutual Release resolving a prepetition claim and
mandating the dismissal of litigation against the Sun and certain
of its reporter employees.
The proposed settlement as reflected in the Agreement has become
effective without further Court order. Pursuant to the terms and
conditions of the Agreement, Mr. Bates will have an allowed
general unsecured claim for $300,000 against the Sun, which will
be paid the same distributions as other allowed general
unsecured claims against the Sun under that plan of reorganization
as is confirmed for the Sun. Furthermore, Mr. Bates will dismiss,
with prejudice, his actions against the Sun and its reporter
employees. The Agreement also provides that the parties to the
Agreement grant general releases to one another of all claims, and
that Mr. Bates provides a general release in favor of the two Sun
reporters against which he had previously asserted claims.
About Tribune Co.
Headquartered in Chicago, Illinois, Tribune Co. --
http://www.tribune.com/-- is a media company, operating
businesses in publishing, interactive and broadcasting, including
ten daily newspapers and commuter tabloids, 23 television
stations, WGN America, WGN-AM and the Chicago Cubs baseball team.
The Company and 110 of its affiliates filed for Chapter 11
protection on December 8, 2008 (Bankr. D. Del. Lead Case No. 08-
13141). The Debtors proposed Sidley Austin LLP as their counsel;
Cole, Schotz, Meisel, Forman & Leonard, PA, as Delaware counsel;
Lazard Ltd. and Alvarez & Marsal North America LLC as financial
advisors; and Epiq Bankruptcy Solutions LLC as claims agent. As
of December 8, 2008, the Debtors have $7,604,195,000 in total
assets and $12,972,541,148 in total debts.
Chadbourne & Parke LLP and Landis Rath LLP serve as co-counsel to
the Official Committee of Unsecured Creditors. AlixPartners LLP
is the Committee's financial advisor. Landis Rath Moelis &
Company serves as the Committee's investment banker. Thomas G.
Macauley, Esq., at Zuckerman Spaeder LLP, in Wilmington, Delaware,
represents the Committee in connection with the lawsuit filed
against former officers and shareholders for the 2007 LBO of
Tribune.
Bankruptcy Creditors' Service, Inc., publishes Tribune Bankruptcy
News. The newsletter tracks the chapter 11 proceeding undertaken
by Tribune Company and its various affiliates.
(http://bankrupt.com/newsstand/or 215/945-7000)
TRIBUNE CO: Committee Wants to Stay Suit vs. JPMorgan et al.
------------------------------------------------------------
The Official Committee of Unsecured Creditors in Tribune Co.'s
cases asks the Bankruptcy Court to stay the prosecution of its
adversary proceeding against JPMorgan Chase Bank, N.A., Merrill
Lynch Capital Corporation, and other leveraged buyout lenders.
The Preference Action seeks to avoid and recover payments of
principal or interest on the LBO loans made by Tribune on or
within the 90 days preceding the Petition Date. The Preference
Action seeks not less than $178,452,422.
According to the Committee, a stay of the Preference Action is
warranted to conserve estate resources and preserve the status quo
pending the outcome of the ongoing plan process, which may
significantly affect the prosecution of the Preference Action.
Given that the Preference Action could be eliminated, reduced or
mooted following the confirmation of certain proposed plans of
reorganization, the requested stay will ensure that the estates'
resources are not consumed needlessly in pursuit of actions that
will not ultimately result in additional recoveries for creditors,
the Committee asserts.
Moreover, the Committee relates that it intends to consolidate or
dismiss the Preference Action should the Court grant its Motion to
Amend. The Committee filed, on December 7, 2010, an amended
Complaint in the LBO Lender Action. The Committee filed a motion
on December 8 to amend the First Amended Complaint in the LBO
Lender Action, which exhibits concerned the preference claims
against the LBO Lender Preference Defendants.
About Tribune Co.
Headquartered in Chicago, Illinois, Tribune Co. --
http://www.tribune.com/-- is a media company, operating
businesses in publishing, interactive and broadcasting, including
ten daily newspapers and commuter tabloids, 23 television
stations, WGN America, WGN-AM and the Chicago Cubs baseball team.
The Company and 110 of its affiliates filed for Chapter 11
protection on December 8, 2008 (Bankr. D. Del. Lead Case No. 08-
13141). The Debtors proposed Sidley Austin LLP as their counsel;
Cole, Schotz, Meisel, Forman & Leonard, PA, as Delaware counsel;
Lazard Ltd. and Alvarez & Marsal North America LLC as financial
advisors; and Epiq Bankruptcy Solutions LLC as claims agent. As
of December 8, 2008, the Debtors have $7,604,195,000 in total
assets and $12,972,541,148 in total debts.
Chadbourne & Parke LLP and Landis Rath LLP serve as co-counsel to
the Official Committee of Unsecured Creditors. AlixPartners LLP
is the Committee's financial advisor. Landis Rath Moelis &
Company serves as the Committee's investment banker. Thomas G.
Macauley, Esq., at Zuckerman Spaeder LLP, in Wilmington, Delaware,
represents the Committee in connection with the lawsuit filed
against former officers and shareholders for the 2007 LBO of
Tribune.
Bankruptcy Creditors' Service, Inc., publishes Tribune Bankruptcy
News. The newsletter tracks the chapter 11 proceeding undertaken
by Tribune Company and its various affiliates.
(http://bankrupt.com/newsstand/or 215/945-7000)
TRIBUNE CO: Step One Plan Lenders Drop Chapter 11 Plan
------------------------------------------------------
Judge Kevin J. Carey of the U.S. Bankruptcy Court for the District
of Delaware amended, on December 16, 2010, the order approving the
Disclosure Statement explaining the plans of reorganization filed
in the bankruptcy cases of Tribune Company and its debtor
affiliates.
The modified Disclosure Statement order reflects the withdrawal of
the reorganization plan filed by certain holders of Step One
Senior Loan Claims. The Step One Plan Proponents withdrew their
proposed Plan on December 14. The judge authorized the Voting
Agent to exclude the Step One Lender Plan from the solicitation
packages.
A full-text copy of the Amended Disclosure Statement Order is
available for free at:
http://bankrupt.com/misc/Tribune_AmDSorder.pdf
In connection with the withdrawal of the Step One Plan, the
Debtors delivered to the Court an amended Joint Disclosure
Statement, which eliminated the Disclosure Statement filed by
certain holders of Step One Senior Loan Claims. Clean and
blacklined copies of the Amended Joint Disclosure Statement are
available for free at:
http://bankrupt.com/misc/Tribune_JointDS1215.pdf
http://bankrupt.com/misc/Tribune_JointDSblack1215.pdf
Copies of exhibits to the Joint Disclosure Statement containing
Corporate Organization Chart, Collective Bargaining Agreements,
Examiner's Report, Liquidation Analysis, Financial Projections,
and Selected Historical Financial Information are available for
free at http://bankrupt.com/misc/Tribune_JointDSExh1215.pdf
Responsive Statements
The three remaining plan proponents filed with the Court their
revised Responsive Statements. A full-text copy of the Responsive
Statement of the Official Committee of Unsecured Creditors is
available for free at:
http://bankrupt.com/misc/Tribune_CommitteeRS1215.pdf
A redlined copy of the Responsive Statement submitted by Oaktree
Capital Management, LP, and Angelo, Gordon & Co., LP, is available
for free at:
http://bankrupt.com/misc/Tribune_OaktreeRSRed1215.pdf
A full-text copy of the Responsive Statement of Aurelius Capital
Management, LP, Deutsche Bank Trust Company Americas, Law
Debenture Trust Company of New York, and Wilmington Trust Company
is available for free at:
http://bankrupt.com/misc/Tribune_RSAurelius1215.pdf
A full-text copy of the Responsive Statement of King Street
Acquisition Company, LLC, King Street Capital, L.P. and Marathon
Asset Management, L.P., is available for free at:
http://bankrupt.com/misc/Tribune_RSBridgePlan1215.pdf
About Tribune Co.
Headquartered in Chicago, Illinois, Tribune Co. --
http://www.tribune.com/-- is a media company, operating
businesses in publishing, interactive and broadcasting, including
ten daily newspapers and commuter tabloids, 23 television
stations, WGN America, WGN-AM and the Chicago Cubs baseball team.
The Company and 110 of its affiliates filed for Chapter 11
protection on December 8, 2008 (Bankr. D. Del. Lead Case No. 08-
13141). The Debtors proposed Sidley Austin LLP as their counsel;
Cole, Schotz, Meisel, Forman & Leonard, PA, as Delaware counsel;
Lazard Ltd. and Alvarez & Marsal North America LLC as financial
advisors; and Epiq Bankruptcy Solutions LLC as claims agent. As
of December 8, 2008, the Debtors have $7,604,195,000 in total
assets and $12,972,541,148 in total debts.
Chadbourne & Parke LLP and Landis Rath LLP serve as co-counsel to
the Official Committee of Unsecured Creditors. AlixPartners LLP
is the Committee's financial advisor. Landis Rath Moelis &
Company serves as the Committee's investment banker. Thomas G.
Macauley, Esq., at Zuckerman Spaeder LLP, in Wilmington, Delaware,
represents the Committee in connection with the lawsuit filed
against former officers and shareholders for the 2007 LBO of
Tribune.
Bankruptcy Creditors' Service, Inc., publishes Tribune Bankruptcy
News. The newsletter tracks the chapter 11 proceeding undertaken
by Tribune Company and its various affiliates.
(http://bankrupt.com/newsstand/or 215/945-7000)
TRIBUNE CO: Court Stays Prosecution of Avoidance Actions
--------------------------------------------------------
Tribune Co. and its units sought and obtained approval from the
Bankruptcy Court to stay until June 30, 2011, the prosecution of
avoidance actions that they filed before the expiration of the
two-year limitation period imposed under Section 546(a) of the
Bankruptcy Code.
The Debtors seek to stay the prosecution of the Avoidance Actions
to conserve estate resources and preserve the status quo pending
the outcome of the plan process, which may largely moot the
litigation or otherwise affect the determination as to the
appropriate prosecution of the Avoidance Actions.
The Debtors relate that they have extensively reviewed and
analyzed all payments made (a) to third parties within 90 days
prior to the Petition Date and (b) to insiders within one year
prior to the Petition Date. According to the Debtors, their
analysis respecting the categories of avoidance claims to be
preserved was vetted thoroughly with the Official Committee of
Unsecured Creditors' advisors who also conducted their own
independent investigation of potential preference causes of
action. The Debtors maintain that they share a common assessment
with the Creditors' Committee of potential Avoidance Actions and
the manner in which they should be treated in the Debtors' cases.
Based on their analyses, the Debtors filed or preserved by tolling
agreements avoidance actions filed against about 89 third parties.
The avoidance actions involve prepetition payments valued at
approximately $90 million, the Debtors say in court papers.
Together with the claims to be filed by the Committee, more than
$500 million in payments will be pursued or preserved through
tolling agreements, the Debtors tell the Court. The Debtors will
enter into tolling agreements with or commence Avoidance Actions
exclusively against third parties on or before the Avoidance Bar
Date.
The Debtors relate that they have entered into agreements to toll
the Avoidance Bar Date with respect to approximately $37.3 million
in payments made during the Preference Period, and are continuing
to finalize additional tolling agreements.
* * *
The Debtors certified to the Court that no objection was filed as
to the Motion. However, the Debtors subsequently withdrew the
Certificate of no Objection because Constellation NewEnergy, Inc.
objected to the motion.
CNE maintained that a stay of the avoidance actions is both
necessary and appropriate but the stay should be mutual.
According to CNE, the avoidance actions should be stayed for all
purposes subject to further order of the Court.
CNE sold electricity to the Debtors prior to the Petition Date.
CNE has been named defendant in at least six of the avoidance
actions recently filed by the Debtors.
CNE objects to the limitations on the stay proposed by the
Debtors, especially the provision allowing the Debtors to take
immediate discovery in the avoidance actions. The form of order
proposed with the Motion would allow the Debtors, without further
relief from the Court, to amend the complaints filed in the
avoidance actions, serves process on defendants, and take steps,
including immediately pursuing discovery, as are necessary for the
purpose of preventing applicable statutes of limitations or other
time-related defenses baring any of the claims asserted in the
Avoidance Actions, CNE complains. CNE adds that the limitations
to the stay sought by the Debtors are unnecessary.
CNE further complains that the Debtors have failed to justify why
they might require immediate discovery in any case or why they
might need to take any other action to preserve their claims.
There is no reason why the defendants should have to answer the
Debtors' discovery requests without being able to propound
requests of their own, CNE contends. This, plus the vague nature
of the "steps" the proposed order allows Debtors to take, creates
unacceptable opportunities for mischief, CNE avers.
CNE then withdrew the objection without prejudice. The Debtors
related in a certification of counsel that following discussion
with CNE, they have resolved CNE's objection.
About Tribune Co.
Headquartered in Chicago, Illinois, Tribune Co. --
http://www.tribune.com/-- is a media company, operating
businesses in publishing, interactive and broadcasting, including
ten daily newspapers and commuter tabloids, 23 television
stations, WGN America, WGN-AM and the Chicago Cubs baseball team.
The Company and 110 of its affiliates filed for Chapter 11
protection on December 8, 2008 (Bankr. D. Del. Lead Case No. 08-
13141). The Debtors proposed Sidley Austin LLP as their counsel;
Cole, Schotz, Meisel, Forman & Leonard, PA, as Delaware counsel;
Lazard Ltd. and Alvarez & Marsal North America LLC as financial
advisors; and Epiq Bankruptcy Solutions LLC as claims agent. As
of December 8, 2008, the Debtors have $7,604,195,000 in total
assets and $12,972,541,148 in total debts.
Chadbourne & Parke LLP and Landis Rath LLP serve as co-counsel to
the Official Committee of Unsecured Creditors. AlixPartners LLP
is the Committee's financial advisor. Landis Rath Moelis &
Company serves as the Committee's investment banker. Thomas G.
Macauley, Esq., at Zuckerman Spaeder LLP, in Wilmington, Delaware,
represents the Committee in connection with the lawsuit filed
against former officers and shareholders for the 2007 LBO of
Tribune.
Bankruptcy Creditors' Service, Inc., publishes Tribune Bankruptcy
News. The newsletter tracks the chapter 11 proceeding undertaken
by Tribune Company and its various affiliates.
(http://bankrupt.com/newsstand/or 215/945-7000)
ULTIMATE ESCAPES: Court Establishes January 11 General Bar Date
---------------------------------------------------------------
The U.S. Bankruptcy Court for the District of Delaware established
January 11, 2011, at 5:00 p.m. prevailing Eastern Time as the
deadline for the filing of proofs of claim in the Chapter 11 cases
of Ultimate Escapes Holdings, LLC, et al.
The Court set March 19, 2011, at 5:00 p.m. prevailing Eastern Time
as the governmental unit bar date.
Proofs of claim are be delivered so as to be actually received by
the Clerk's Office, Bankruptcy Court for the District of Delaware
no later than the applicable bar dates.
About Ultimate Escapes
Ultimate Escapes, Inc. -- http://www.ultimateescapes.com/-- is a
luxury destination club that sells club memberships offering
members reservation rights to use its vacation properties, subject
to the rules of the club member's Club Membership Agreement. The
Company's properties are located in various resort locations
throughout the world.
Kissimmee, Florida-based Ultimate Escapes Holdings, LLC, filed for
Chapter 11 bankruptcy protection on September 20, 2010 (Bankr. D.
Del. Case No. 10-12915). Affiliates Ultimate Resort, LLC;
Ultimate Operations, LLC; Ultimate Resort Holdings, LLC; Ultimate
Escapes, Inc. (fka Secure America Acquisition Corporation); P & J
Partners, LLC; UE Holdco, LLC; UE Member, LLC, et al., filed
separate Chapter 11 petitions.
Scott D. Cousins, Esq., Matthew L. Hinker, Esq., and Nancy A.
Mitchell, Esq., at Greenberg Traurig LLP, assist the Debtors in
their restructuring efforts. CRG Partners Group LLC is the
Debtors' chief restructuring officer. BMC Group Inc. is the
Company's claims and notice agent.
Christopher A. Ward, Esq., at Polsinelli Shughart PC, and Gordon &
Rees LLP represent the Creditors Committee.
Ultimate Escapes estimated assets at $10 million to $50 million
and debts at $100 million to $500 million as of the Petition Date.
UNI-PIXEL: Files Post-Effective Amendment to Add Exhibits
---------------------------------------------------------
Uni-Pixel, Inc. filed with the Securities and Exchange Commission
on December 10, 2010, a Post-Effective Amendment to its
Registration Statement on Form S-1, as amended, initially on
September 9, 2010 and declared effective by the Securities and
Exchange Commission on December 9, 2010. The Company is filing
the Amendment for the sole purpose of replacing Exhibits 1.1 and
3.1 to the Registration Statement.
A copy of the Underwriting Agreement is available for free
At http://ResearchArchives.com/t/s?7146
A copy of the Composite Certificate of Incorporation is available
for free at http://ResearchArchives.com/t/s?7147
The Woodlands, Tex.-based Uni-Pixel, Inc. (OTC BB: UNXL)
-- http://www.unipixel.com/-- is a production stage company
delivering its Clearly Superior(TM) Performance Engineered Films
to the Lighting & Display, Solar and Flexible Electronics market
segments.
PMB Helin Donovan, 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 the Company has sustained losses and negative cash
flows from operations since inception.
The Company's balance sheet as of September 30, 2010, showed
$1.26 million in total assets, $4.15 million in total liabilities,
and a stockholders' deficit of $2.89 million.
US AIRWAYS: To Issue 340MM Certificates to Refinance Aircraft
-------------------------------------------------------------
US Airways, Inc., a wholly owned subsidiary of US Airways Group,
Inc., said it intends to make an offering of enhanced equipment
trust certificates in the aggregate principal amount of
approximately $340 million, according to a statement filed with
the U. S. Securities and Exchange Commission.
The Company said it aims to use the proceeds from the offering to
refinance eight Airbus aircraft currently owned by US Airways and
use the balance, if any, for general corporate purposes.
The $340 million financing will be comprised of approximately
$263 million of Class A certificates with a final expected
distribution date of April 22, 2023, and approximately
$77 million of Class B certificates with a final expected
distribution date of April 22, 2017.
Morgan Stanley & Co. Incorporated will act as structuring agent
for the offering. Morgan Stanley, Citigroup Global Markets Inc.
and Credit Suisse Securities (USA) LLC will act as the joint
book-running managers for the offering; Merrill Lynch, Pierce,
Fenner & Smith Incorporated will act as a co-manager for the
offering.
The Certificates will be offered under the Company's existing
effective shelf registration statement on Form S-3 previously
filed with the Securities and Exchange Commission.
The Company said in a Form 424B5 on December 15, 2010, that it is
offering the shares under the 2010-1 Pass Through Trusts Pass
Through Certificates, Series 2010-1.
The Company related that the proceeds from the sale of
certificates will initially be held in escrow, and interest on
the escrowed funds will be payable semi-annually on April 22 and
October 22, commencing April 22, 2011. The trusts will use the
escrowed funds to acquire equipment notes. Payments on the
equipment notes held in each trust will be passed through to the
holders of certificates of that trust.
Interest on the equipment notes will be payable semi-annually on
each April 22 and October 22 after issuance. Principal payments
on the equipment notes are scheduled on April 22 and October 22
in certain years, beginning on October 22, 2011.
Morgan Stanley Bank, N.A. will provide a liquidity facility for
the Class A certificates and the Class B certificates, in each
case, in an amount sufficient to make three semiannual interest
payments.
The payment obligations of US Airways under the equipment notes
will be fully and unconditionally guaranteed by US Airways Group,
Inc.
A full-text copy of the prospectus is available for free at:
http://ResearchArchives.com/t/s?711e
In connection with the offering, US Airways filed with the SEC a
free writing prospectus on December 16, 2010, a full-text copy of
which is available for free at:
http://ResearchArchives.com/t/s?711f
About US Airways
US Airways -- http://www.usairways.com/-- along with US Airways
Shuttle and US Airways Express, operates more than 3,000 flights
per day and serves more than 190 communities in the U.S., Canada,
Mexico, Europe, the Middle East, the Caribbean, Central and South
America.
Under a Chapter 11 plan declared effective on March 31, 2003,
USAir emerged from bankruptcy with the Retirement Systems of
Alabama taking a 40% equity stake in the deleveraged carrier in
exchange for $240 million infusion of new capital.
US Airways and its subsidiaries filed another Chapter 11 petition
on September 12, 2004 (Bankr. E.D. Va. Case No. 04-13820). Brian
P. Leitch, Esq., Daniel M. Lewis, Esq., and Michael J. Canning,
Esq., at Arnold & Porter LLP, and Lawrence E. Rifken, Esq., and
Douglas M. Foley, Esq., at McGuireWoods LLP, represented the
Debtors in their restructuring efforts. The USAir II bankruptcy
plan became effective on September 27, 2005. The Debtors
completed their merger with America West on the same date. (US
Airways Bankruptcy News; Bankruptcy Creditors' Service Inc.,
http://bankrupt.com/newsstand/or 215/945-7000).
* * *
US Airways Group carries Moody's "Caa1" Long-Term rating, LT Corp.
family rating and probability of default rating. Outlook is
negative.
US Airways Group carries Standard & Poor's "B-" LT Foreign Issuer
Credit rating and LT Local Issuer credit rating. Outlook is also
negative.
US Airways Group carries Fitch's "CCC" LT Issuer default rating
and "C" Senior unsecured debt rating. Outlook is also negative.
US AIRWAYS: Inks Codeshare Agreement With Turkish Airlines
----------------------------------------------------------
Turkish Airlines said in a press release dated December 16, 2010,
that it signed a new codeshare agreement with US Airways which
will enable both airlines to use each other's flight codes. The
customers of Turkish Airlines and US Airways will soon enjoy
greater travel options to Turkey and the United States, the
Company said. US Airways customers will have access to Istanbul
via Turkish Airlines service from Frankfurt, Munich and Zurich,
and may also access four new destinations in Turkey via Istanbul:
Adana, Izmir, Antalya and Ankara. US Airways customers may have
nonstop travel to Istanbul via Turkish Airlines service at New
York and Chicago, the statement said.
Conversely, Turkish Airlines customers gain access to Charlotte,
Philadelphia and Phoenix via US Airways, flying from Frankfurt,
Munich, Zurich, Chicago and New York.
Turkish Airlines Executive Vice President (Commercial), Mr. Orhan
Sivrikaya, said "We are extremely delighted to sign the codeshare
agreement with US Airways, this codeshare partnership served as
an example of Turkish Airlines' target to maximize the
opportunities offered to passengers by enabling them to enjoy
extensive networks of both airlines."
US Airways Senior Vice President, Marketing and Planning Andrew
Nocella, said, "This new partnership boosts convenience for air
travel between the U.S. and Turkey, and we're excited to bring it
to US Airways customers. And thanks to Star Alliance membership,
customers may also accrue and redeem Dividend Miles on Turkish
Airlines-operated flights and enjoy Turkish Airlines lounge
access."
The new codeshare agreement enables US Airways flights to connect
Turkish Airlines' network of 127 international and 39 domestic
routes.
Codeshared flights will commence on January 19, 2011.
About US Airways
US Airways -- http://www.usairways.com/-- along with US Airways
Shuttle and US Airways Express, operates more than 3,000 flights
per day and serves more than 190 communities in the U.S., Canada,
Mexico, Europe, the Middle East, the Caribbean, Central and South
America.
Under a Chapter 11 plan declared effective on March 31, 2003,
USAir emerged from bankruptcy with the Retirement Systems of
Alabama taking a 40% equity stake in the deleveraged carrier in
exchange for $240 million infusion of new capital.
US Airways and its subsidiaries filed another Chapter 11 petition
on September 12, 2004 (Bankr. E.D. Va. Case No. 04-13820). Brian
P. Leitch, Esq., Daniel M. Lewis, Esq., and Michael J. Canning,
Esq., at Arnold & Porter LLP, and Lawrence E. Rifken, Esq., and
Douglas M. Foley, Esq., at McGuireWoods LLP, represented the
Debtors in their restructuring efforts. The USAir II bankruptcy
plan became effective on September 27, 2005. The Debtors
completed their merger with America West on the same date. (US
Airways Bankruptcy News; Bankruptcy Creditors' Service Inc.,
http://bankrupt.com/newsstand/or 215/945-7000).
* * *
US Airways Group carries Moody's "Caa1" Long-Term rating, LT Corp.
family rating and probability of default rating. Outlook is
negative.
US Airways Group carries Standard & Poor's "B-" LT Foreign Issuer
Credit rating and LT Local Issuer credit rating. Outlook is also
negative.
US Airways Group carries Fitch's "CCC" LT Issuer default rating
and "C" Senior unsecured debt rating. Outlook is also negative.
US AIRWAYS: Files Statement of Eligibility as Trustee
-----------------------------------------------------
Wilmington Trust Company filed with the U.S. Securities and
Exchange Commission on December 9, 2010, a Form T-1 stating its
eligibility to act as trustee under the Trust Indenture Act of
1939.
In connection with the Statement, Wilmington Trust filed these
exhibits:
-- A Charter of Wilmington Trust, a full-text copy of which
is available for free at:
http://ResearchArchives.com/t/s?711a
-- By-Laws of Wilmington Trust, a full-text copy of which is
available for free at:
http://ResearchArchives.com/t/s?711b
-- Consent of Wilmington Trust required by Section 321(b) of
the Trust Indenture Act, a full-text copy of which is
available for free at http://ResearchArchives.com/t/s?711c
-- The most recent report of Condition of Wilmington Trust, a
full-text copy of which is available for free at:
http://ResearchArchives.com/t/s?711d
About US Airways
US Airways -- http://www.usairways.com/-- along with US Airways
Shuttle and US Airways Express, operates more than 3,000 flights
per day and serves more than 190 communities in the U.S., Canada,
Mexico, Europe, the Middle East, the Caribbean, Central and South
America.
Under a Chapter 11 plan declared effective on March 31, 2003,
USAir emerged from bankruptcy with the Retirement Systems of
Alabama taking a 40% equity stake in the deleveraged carrier in
exchange for $240 million infusion of new capital.
US Airways and its subsidiaries filed another Chapter 11 petition
on September 12, 2004 (Bankr. E.D. Va. Case No. 04-13820). Brian
P. Leitch, Esq., Daniel M. Lewis, Esq., and Michael J. Canning,
Esq., at Arnold & Porter LLP, and Lawrence E. Rifken, Esq., and
Douglas M. Foley, Esq., at McGuireWoods LLP, represented the
Debtors in their restructuring efforts. The USAir II bankruptcy
plan became effective on September 27, 2005. The Debtors
completed their merger with America West on the same date. (US
Airways Bankruptcy News; Bankruptcy Creditors' Service Inc.,
http://bankrupt.com/newsstand/or 215/945-7000).
* * *
US Airways Group carries Moody's "Caa1" Long-Term rating, LT Corp.
family rating and probability of default rating. Outlook is
negative.
US Airways Group carries Standard & Poor's "B-" LT Foreign Issuer
Credit rating and LT Local Issuer credit rating. Outlook is also
negative.
US Airways Group carries Fitch's "CCC" LT Issuer default rating
and "C" Senior unsecured debt rating. Outlook is also negative.
US AIRWAYS: Reports November 2010 Traffic Results
-------------------------------------------------
US Airways Group, Inc., said November and year-to-date 2010
traffic results. Mainline revenue passenger miles for the month
were 4.5 billion, up 7.8% versus November 2009. Mainline capacity
was 5.6 billion available seat miles, up 3.4% versus November
2009. Mainline passenger load factor was 80.6%, a record for the
month of November and up 3.3 points versus November 2009.
US Airways' President Scott Kirby said, "Our November consolidated
(mainline and Express) passenger revenue per available seat mile
(PRASM) and total revenue per available seat mile each increased
approximately 6 percent versus the same period last year.
"Our team did an outstanding job of taking care of our customers
in November. For the month, our preliminary on-time performance
as reported to the U.S. Department of Transportation (DOT) was
86.0 percent with a record completion factor of 99.6 percent. In
addition, our preliminary November baggage handling performance
was the best since 2005."
The following summarizes US Airways Group's traffic results for
the month and year-to-date ended November 30, 2010 and 2009,
consisting of mainline operated flights as well as US Airways
Express flights operated by wholly owned subsidiaries PSA Airlines
and Piedmont Airlines.
US Airways Mainline
November
2010 2009 % Change
Mainline Revenue Passenger Miles (000)
Domestic 3,540,091 3,362,854 5.3
Atlantic 618,128 520,052 18.9
Latin 347,932 298,366 16.6
--------- ---------
Total 4,506,151 4,181,272 7.8
Mainline Available Seat Miles (000)
Domestic 4,310,254 4,284,427 0.6
Atlantic 839,573 711,234 18.0
Latin 441,684 412,057 7.2
--------- ---------
Total 5,591,511 5,407,718 3.4
Mainline Load Factor (%)
Domestic 82.1 78.5 3.6 pts
Atlantic 73.6 73.1 0.5 pts
Latin 78.8 72.4 6.4 pts
--------- ---------
Total Mainline Load Factor 80.6 77.3 3.3 pts
Mainline Enplanements
Domestic 3,817,016 3,534,300 8.0
Atlantic 149,434 12,920 15.9
Latin 260,823 239,589 8.9
--------- ---------
Total Mainline Enplanements 4,227,273 3,902,809 8.3
Year to Date
2010 2009 % Change
Mainline Revenue Passenger Miles (000)
Domestic 40,252,262 40,790,559 (1.3)
Atlantic 9,316,798 8,762,967 6.3
Latin 4,667,672 3,849,037 21.3
---------- ----------
Total 54,236,732 53,402,563 1.6
Mainline Available Seat Miles (000)
Domestic 48,290,660 48,869,831 (1.2)
Atlantic 11,504,267 11,241,890 2.3
Latin 5,925,607 4,954,983 19.6
---------- ----------
Total 65,720,534 65,066,704 1.0
Mainline Load Factor (%)
Domestic 83.4 83.5 (0.1) pts
Atlantic 81.0 77.9 3.1 pts
Latin 78.8 77.7 1.1 pts
--------- ---------
Total Mainline Load Factor 82.5 82.1 0.4 pts
Mainline Enplanements
Domestic 41,784,016 41,663,942 0.3
Atlantic 2,301,182 2,226,460 3.4
Latin 3,490,460 3,113,897 12.1
---------- ----------
Total Mainline Enplanements 47,575,658 47,004,299 1.2
US Airways Express
(Piedmont Airlines, PSA Airlines)
November
2010 2009 % Change
Express Revenue Passenger Miles (000)
Domestic 193,308 165,916 16.5
Express Available Seat Miles (000)
Domestic 264,532 243,435 8.7
Express Load Factor (%)
Domestic 73.1 68.2 4.9 pts
Express Enplanements
Domestic 676,033 630,855 7.2
Year To Date
2010 2009 % Change
Express Revenue Passenger Miles (000)
Domestic 2,031,270 1,96,850 3.3
Express Available Seat Miles (000)
Domestic 2,848,690 2,885,461 (1.3)
Express Load Factor (%)
Domestic 71.3 68.2 3.1 pts
Express Enplanements
Domestic 7,324,659 7,304,947 0.3
Consolidated US Airways Group, Inc.
November
2010 2009 % Change
Consolidated Revenue Passenger Miles (000)
Domestic 3,733,399 3,528,770 5.8
Atlantic 618,128 520,052 18.9
Latin 347,932 298,366 16.6
--------- ---------
Total 4,699,459 4,347,188 8.1
Consolidated Available Seat Miles (000)
Domestic 4,574,786 4,527,862 1.0
Atlantic 839,573 711,234 18.0
Latin 441,684 412,057 7.2
---------- ----------
Total 5,856,043 5,651,153 3.6
Consolidated Load Factor (%)
Domestic 81.6 77.9 3.7 pts
Atlantic 73.6 73.1 0.5 pts
Latin 78.8 72.4 6.4 pts
---------- ----------
Total 80.2 76.9 3.3 pts
Consolidated Enplanements
Domestic 4,493,049 4,165,155 7.9
Atlantic 149,434 128,920 15.9
Latin 260,823 239,589 8.9
---------- ----------
Total 4,903,306 4,533,664 8.2
Year To Date
2010 2009 % Change
Consolidated Revenue Passenger Miles (000)
Domestic 42,283,532 42,757,409 (1.1)
Atlantic 9,316,798 8,762,967 6.3
Latin 4,667,672 3,849,037 21.3
---------- ----------
Total 56,268,002 55,369,413 1.6
Consolidated Available Seat Miles (000)
Domestic 51,139,350 51,755,292 (1.2)
Atlantic 11,504,267 11,241,890 2.3
Latin 5,925,607 4,954,983 19.6
---------- ----------
Total 68,569,224 67,952,165 0.9
Consolidated Load Factor (%)
Domestic 82.7 82.6 0.1 pts
Atlantic 81.0 77.9 3.1 pts
Latin 78.8 77.7 1.1 pts
---------- ----------
Total 82.1 81.5 0.6 pts
Consolidated Enplanements
Domestic 49,108,675 48,968,889 0.3
Atlantic 2,301,182 2,226,460 3.4
Latin 3,490,460 3,113,897 12.1
---------- ----------
Total 54,900,317 54,309,246 1.1
About US Airways
US Airways -- http://www.usairways.com/-- along with US Airways
Shuttle and US Airways Express, operates more than 3,000 flights
per day and serves more than 190 communities in the U.S., Canada,
Mexico, Europe, the Middle East, the Caribbean, Central and South
America.
Under a Chapter 11 plan declared effective on March 31, 2003,
USAir emerged from bankruptcy with the Retirement Systems of
Alabama taking a 40% equity stake in the deleveraged carrier in
exchange for $240 million infusion of new capital.
US Airways and its subsidiaries filed another Chapter 11 petition
on September 12, 2004 (Bankr. E.D. Va. Case No. 04-13820). Brian
P. Leitch, Esq., Daniel M. Lewis, Esq., and Michael J. Canning,
Esq., at Arnold & Porter LLP, and Lawrence E. Rifken, Esq., and
Douglas M. Foley, Esq., at McGuireWoods LLP, represented the
Debtors in their restructuring efforts. The USAir II bankruptcy
plan became effective on September 27, 2005. The Debtors
completed their merger with America West on the same date. (US
Airways Bankruptcy News; Bankruptcy Creditors' Service Inc.,
http://bankrupt.com/newsstand/or 215/945-7000).
* * *
US Airways Group carries Moody's "Caa1" Long-Term rating, LT Corp.
family rating and probability of default rating. Outlook is
negative.
US Airways Group carries Standard & Poor's "B-" LT Foreign Issuer
Credit rating and LT Local Issuer credit rating. Outlook is also
negative.
US Airways Group carries Fitch's "CCC" LT Issuer default rating
and "C" Senior unsecured debt rating. Outlook is also negative.
UTSTARCOM INC: Board Elects Linzhen Xie as Director
---------------------------------------------------
UTStarcom Inc. said its board of directors had elected Linzhen Xie
as director. He was also appointed to the Board's Audit Committee
and its Nominating and Corporate Governance Committee. The move
increased the size of UTStarcom's board from 6 to 7. Mr. Linzhen
Xie's position and appointments on the Company's board of
directors were effective December 13, 2010. As a result of the
election, the majority of the directors constituting the Board of
Directors of the Company are independent directors.
Mr. Xie brings his considerable experience in the
telecommunications industry to the board and the Company. At age
70, Mr. Xie has about 28 years of experience in China's
electronics industry, and for the last 21 of those years he has
served as a Professor of electronics at Peking University. He
holds a number of positions with industry associations and
companies including: Vice President of China Mobile Communications
Association since 2004; Chief Scientist and member of the Board of
Directors of CECT-Chinacomm Communications Co. Ltd., a state-owned
wireless broadband service provider since 2006; a member of the
Board of Directors of SIM Technology Group Ltd., a Hong Kong
listed mobile handset and wireless communication development
company since 2009; and a member of the Board of Directors of
Funtalk China Holding Ltd., a NASDAQ listed distributor of mobile
communications devices and accessories since 2009.
"We are very pleased that Mr. Xie is joining UTStarcom as he
brings a wealth of experience to the board having held numerous
academic, senior government and industry association positions,"
stated Thomas J. Toy, chairman of the board of UTStarcom. "In
addition, we will be able to draw on his considerable knowledge
and understanding of China's burgeoning telecom sector as well as
his wisdom and considerable technical expertise as we drive the
business forward."
About UTStarcom, Inc.
UTStarcom, Inc. (Nasdaq: UTSI) -- http://www.utstar.com/-- is a
global leader in IP-based, end-to-end networking solutions and
international service and support. The Company sells its
solutions to operators in both emerging and established
telecommunications markets around the world. UTStarcom enables
its customers to rapidly deploy revenue-generating access services
using their existing infrastructure, while providing a migration
path to cost-efficient, end-to-end IP networks. The Company's
headquarters are currently in Alameda, California, with its
research and design operations primarily in China.
The Company's balance sheet at Sept. 30, 2010, showed
$810.98 million in total assets, $557.68 million in total
liabilities, and stockholder's equity of $253.31 million.
* * *
In its Form 10-K, the Company noted that it has recorded operating
losses in 19 of the 20 consecutive quarters in the period ended
December 31, 2009. At December 31, 2009, the Company had an
accumulated deficit of $1.067 billion. While operating results
are expected to improve in 2010 compared with prior years,
management expects the Company to continue to incur losses in
2010.
VERTIS HOLDINGS: Patrick Donahue Suit Transferred to S.D.N.Y.
-------------------------------------------------------------
District Judge Mary L. Cooper transfers the action, Patrick
Donahue, v. Vertis, Inc., et al., Case No. 10-cv-2942 (D. N.J.),
to the Southern District of New York. Judge Coooper says the
action is "related to" Vertis' bankruptcy as the outcome in the
suit could affect the bankruptcy estates, and the claims against
VTI, UDLLC, RDI, and Mr. Osbourne are intertwined.
Plaintiff sued Vertis, Inc., USA Direct, LLC, Reel Direct, Inc.,
and Richard Osbourne to recover damages for breach of contract.
A copy of Judge Cooper's December 20, 2010 Opinion is available at
http://is.gd/jhN41from Leagle.com.
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.
As reported by the Troubled Company Reporter, Bill Rochelle, the
bankruptcy columnist for Bloomberg News, said Vertis Holdings
consummated its prepackaged Chapter 11 plan on December 21. The
bankruptcy court approved the prepackaged plan on December 16.
Vertis' Plan, which reduces debt by more than $700 million or 60%,
was previously approved by the overwhelming majority of note
holders.
This is the Debtors' second 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: CEO et al. Receive Restricted Stock Units
----------------------------------------------------------------
Four officers of Vitesse Semiconductor Corporation filed separate
Form 4s with the Securities and Exchange Commission disclosing
their stake in the Company.
CEO Christopher R. Gardner disclosed holding options to buy up to
72,600 common shares in the Company. Mr. Gardner also acquired
147,400 common shares on December 9, 2010, raising his stake to
264,865 shares.
CFO Richard C. Yonker acquired 67,000 shares on December 9,
raising his stake to 117,000 shares. He also holds options to buy
up to 33,000 shares.
Mr. Yonker also indirectly holds 9,000 shares through the Yonker
Family Trust.
Steffan M. Perna, VP for Marketing, acquired 13,400 shares,
raising his stake to 38,400 shares on December 9. He has options
to buy up to 6,600 common shares.
Martin C. Nuss, VP for Technology & Strategy, acquired 40,200
shares raising his stake to 62,700 shares on December 9. He has
options to buy up to 19,800 shares.
The shares acquired by the officers on December 9 represent a
grant of restricted stock units. One fourth of the RSUs vests on
the first anniversary of the grant and an additional one fourth
each anniversary thereafter until the RSUs are fully vested.
As of March 31, 2010, the aggregate market value of the voting and
non-voting common equity held by non-affiliates was $56,561,579,
based on the closing price on that date. 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.
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.
The Company's balance sheet at Sept. 30, 2010, showed $97.53
million in total assets, $118.73 million in total liabilities, and
a stockholders' deficit of $21.20 million.
WASHINGTON MUTUAL: Court Snubs Equity Panel's Objection to Plan
---------------------------------------------------------------
The Hon. Mary F. Walrath of the U.S. Bankruptcy Court for the
District of Delaware denied the request of the Official Committee
of Equity Security Holders to file supplemental objection to Plan
confirmation.
The Equity Committee objected to the Debtors' decision to adjourn
the hearing on the motion to abandon their equity in WMB until
January 6, 2011. The Equity Committee said the Debtors' decision
to adjourn the meeting significantly impacts the Debtors'
valuation for purposes of Plan confirmation.
The equity holders related that at the confirmation hearing held
earlier this month, Stephen M. Zelin of Blackstone Advisory
Partners, L.P., valuated certain net operating loss assets of
Reorganized WMI. Mr. Zelin's valuation of NOL carryforward owned
by the Reorganized WMI assumed that the stock loss would be
declared on December 24, 2010, with a resulting unlimited NOL of
$100 million.
The Debtors' expert's analysis was predicated on the assumption
that the Debtors would abandon their equity in WMB on December 24.
About Washington Mutual
Based in Seattle, Washington, Washington Mutual Inc. --
http://www.wamu.com/-- is a holding company for Washington Mutual
Bank as well as numerous non-bank subsidiaries.
Washington Mutual Bank was taken over on Sept. 25, 2008, by U.S.
government regulators. The next day, WaMu and its affiliate, WMI
Investment Corp., filed separate petitions for Chapter 11 relief
(Bankr. D. Del. 08-12229 and 08-12228, respectively). WaMu owns
100% of the equity in WMI Investment. When WaMu filed for
protection from its creditors, it disclosed assets of
$32,896,605,516 and debts of $8,167,022,695. WMI Investment
estimated assets of $500 million to $1 billion with zero debts.
WaMu is represented by Brian Rosen, Esq., at Weil, Gotshal &
Manges LLP in New York City; Mark D. Collins, Esq., at Richards,
Layton & Finger P.A. in Wilmington, Del.; and Peter Calamari,
Esq., and David Elsberg, Esq., at Quinn Emanuel Urquhart Oliver &
Hedges, LLP. Fred S. Hodera, Esq., at Akin Gump Strauss Hauer &
Fled LLP in New York City and David B. Stratton, Esq., at Pepper
Hamilton LLP in Wilmington, Del., represent the Official Committee
of Unseucred Creditors. Stephen D. Susman, Esq., at Susman
Godfrey LLP and William P. Bowden, Esq., at Ashby & Geddes, P.A.,
represent the Equity Committee. Stacey R. Friedman, Esq., at
Sullivan & Cromwell LLP and Adam G. Landis, Esq., at Landis Rath &
Cobb LLP in Wilmington, Del., represent JP Morgan Chase, which
acquired WaMu's assets prior to the Petition Date.
WASHINGTON MUTUAL: Judge Junks Workers' FLSA Action V. JPMorgan
---------------------------------------------------------------
Bankruptcy Law360 reports that a federal judge has ruled that
former underwriter employees for defunct Washington Mutual Inc.
can't sue the collapsed bank's parent company JPMorgan Chase & Co.
over wage-and-hour violations in a putative class action because
they failed to follow special procedures for suits against failed
institutions.
Based in Seattle, Washington, Washington Mutual Inc. --
http://www.wamu.com/-- is a holding company for Washington Mutual
Bank as well as numerous non-bank subsidiaries.
Washington Mutual Bank was taken over on Sept. 25, 2008, by U.S.
government regulators. The next day, WaMu and its affiliate, WMI
Investment Corp., filed separate petitions for Chapter 11 relief
(Bankr. D. Del. 08-12229 and 08-12228, respectively). WaMu owns
100% of the equity in WMI Investment. When WaMu filed for
protection from its creditors, it disclosed assets of
$32,896,605,516 and debts of $8,167,022,695. WMI Investment
estimated assets of $500,000,000 to $1,000,000,000 with zero
debts.
WaMu is represented by Brian Rosen, Esq., at Weil, Gotshal &
Manges LLP in New York City; Mark D. Collins, Esq., at Richards,
Layton & Finger P.A. in Wilmington, Del.; and Peter Calamari,
Esq., and David Elsberg, Esq., at Quinn Emanuel Urquhart Oliver &
Hedges, LLP. Fred S. Hodera, Esq., at Akin Gump Strauss Hauer &
Fled LLP in New York City and David B. Stratton, Esq., at Pepper
Hamilton LLP in Wilmington, Del., represent the Official Committee
of Unseucred Creditors. Stephen D. Susman, Esq., at Susman
Godfrey LLP and William P. Bowden, Esq., at Ashby & Geddes, P.A.,
represent the Equity Committee. Stacey R. Friedman, Esq., at
Sullivan & Cromwell LLP and Adam G. Landis, Esq., at Landis Rath &
Cobb LLP in Wilmington, Del., represent JP Morgan Chase, which
acquired WaMu's assets prior to the Petition Date.
WESTHAMPTON COACHWORKS: Case Converted to Chapter 7
---------------------------------------------------
Bankruptcy Judge Alan S. Trust converted the Chapter 11 cases of
Westhampton Classic Cars d/b/a Manhattan Motorcars of the
Hamptons, and Westhampton Coachworks, Ltd., at the behest of the
United States Trustee.
The U.S. Trustee seeks conversion or dismissal of the Debtors'
cases due to both Debtors' postpetition losses and inability to
reorganize and based on certain of the Debtors' pre-and post-
petition transactions. In addition, as to Coachworks, the U.S.
Trustee seeks dismissal or conversion due to its failure to pay
post-petition taxes. The Debtors objected.
A copy of Judge Trust's December 21, 2010 Decision and Order is
available at http://is.gd/jhPZLfrom Leagle.com.
Westhampton Coachworks Ltd. and Westhampton Classic Cars d/b/a
Manhattan Motorcars of the Hamptons filed for Chapter 11
bankruptcy protection (Bankr. E.D. N.Y. Case No. 09-73008) on
April 29, 2009. Kenneth A. Reynolds, Esq., at McBreen & Kopko,
assists the Debtors in their restructuring efforts.
WHITE FARMS: Voluntary Chapter 11 Case Summary
----------------------------------------------
Debtor: White Farms Trucking, Inc.
201 N. First Street
Doniphan, NE 68832
Bankruptcy Case No.: 10-43797
Chapter 11 Petition Date: December 21, 2010
Court: United States Bankruptcy Court
District of Nebraska (Lincoln Office)
Debtor's Counsel: Robert V. Ginn, Esq.
HUSCH BLACKWELL SANDERS
1620 Dodge Street, Suite 2100
Omaha, NE 68102
Tel: (402) 964-5000
Fax: (402) 964-5050
E-mail: rvgbknotice@huschblackwell.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
The Debtor did not file a list of its largest unsecured creditors
together with its petition.
The petition was signed by Craig White, president.
WINDSOR LAKE: Case Summary & 20 Largest Unsecured Creditors
-----------------------------------------------------------
Debtor: Windsor Lake Estates, L.L.C.
aka Ashdown Forest Estates, LLC
aka Fox Chase at Sparta, L.L.C.
aka The Estates at Fox Hollow Lake
19 Windmere Way
Sparta, NJ 07871
Bankruptcy Case No.: 10-49341
Chapter 11 Petition Date: December 21, 2010
Court: United States Bankruptcy Court
District of New Jersey (Newark)
Judge: Morris Stern
Debtor's Counsel: Richard D. Trenk, Esq.
TRENK, DIPASQUALE, WEBSTER, ET AL
347 Mt. Pleasant Avenue, Suite 300
West Orange, NJ 07052
Tel: (973) 243-8600
E-mail: rtrenk@trenklawfirm.com
Scheduled Assets: $93,116
Scheduled Debts: $4,918,129
A list of the Company's 20 largest unsecured creditors
filed together with the petition is available for free
at http://bankrupt.com/misc/njb10-49341.pdf
The petition was signed by Brian Patrick Delaney, sole member of
Windsor Lake Estates, LLC.
YRC WORLDWIDE: Gets More Time to Finalize Recovery Plan
-------------------------------------------------------
YRC Worldwide Inc. announced amendments to its credit agreement
and asset-backed securitization facility. Both amendments are
intended to provide additional time for the company and its key
stakeholders to finalize plans to recapitalize the company's
balance sheet, including working with its lenders and the Teamster
negotiating committee for the International Brotherhood of
Teamsters.
The amended credit facilities extend the deferral of credit
agreement interest and fees through mid-May 2011 and interest and
fees under the ABS facility through May 31, 2011. The amendment
requires the company to reach an agreement in principal to
recapitalize its balance sheet by February 28, 2011, complete
final documentation by March 15, 2011 and close by May 13, 2011.
The effectiveness of the credit agreement and ABS facility
amendments is subject to the consent of TNFINC and agreement by a
supermajority of the multi-employer pension funds who are party to
the company's contribution deferral agreement to an extension of
the deferral of interest and principal payments under that
agreement through May 31, 2011.
In addition, the amendments establish the company's 2011 financial
covenants in conjunction with the company's finalization of its
2011 financial forecast. For the four quarters ending March 31,
2011, the company's adjusted earnings before interest, taxes,
depreciation and amortization covenant is $140 million and its
minimum available cash covenant will remain at $25 million.
"We appreciate the continued support of all our stakeholders as we
work to finalize our comprehensive recovery plan," said Sheila
Taylor, Executive Vice President and CFO of YRC Worldwide. "These
amendments are another indication of the positive dialogue with
our lenders and their further interest in a long-term solution for
the company."
About YRC Worldwide
Headquartered in Overland Park, Kan., YRC Worldwide Inc. (NASDAQ:
YRCW) -- http://www.yrcw.com/-- is a holding company that through
wholly owned operating subsidiaries offers its customers a wide
range of transportation services. These services include global,
national and regional transportation as well as logistics.
The company's balance sheet for June 30, 2010, showed $2.8 billion
in total assets, $1.1 billion in total current liabilities, $913.4
million in long term debt, $146.2 million deferred income taxes,
$352.6 million pension and post retirement, $359.2 million claims
and other liabilities, $37,000 noncurrent liabilities, and
a $77.2 million stockholders' deficit.
* * *
As reported in the Troubled Company Reporter on March 18, 2010,
KPMG LLP, in Kansas City, Missouri, expressed substantial doubt
about YRC Worldwide's ability to continue as a going concern in
its report on the Company's consolidated financial statements as
of and for the year ended December 31, 2009. The independent
auditors noted that the Company has experienced significant
declines in operations, cash flows, and liquidity.
* BOND PRICING -- For Week From Dec. 20 - Dec. 25, 2010
-------------------------------------------------------
Company Coupon Maturity Bid Price
------- ------ -------- ---------
155 E TROPICANA 8.750% 4/1/2012 4.580
ABITIBI-CONS FIN 7.875% 8/1/2009 15.125
ADVANTA CAP TR 8.990% 12/17/2026 11.500
AFFINITY GROUP 10.875% 2/15/2012 49.500
AHERN RENTALS 9.250% 8/15/2013 48.500
AMBAC INC 5.950% 12/5/2035 11.000
AMBAC INC 7.500% 5/1/2023 9.000
AMBAC INC 9.500% 2/15/2021 11.000
AMBASSADORS INTL 3.750% 4/15/2027 38.800
AT HOME CORP 0.525% 12/28/2018 0.504
BAC-CALL01/11 5.250% 1/15/2019 98.100
BALLY TOTAL FITN 14.000% 10/1/2013 1.000
BANK NEW ENGLAND 8.750% 4/1/1999 12.000
BANK NEW ENGLAND 9.875% 9/15/1999 9.000
BANKUNITED FINL 6.370% 5/17/2012 6.000
BLOCKBUSTER INC 9.000% 9/1/2012 1.250
BOWATER INC 6.500% 6/15/2013 31.000
BOWATER INC 9.500% 10/15/2012 36.500
C&D TECHNOLOGIES 5.250% 11/1/2025 60.000
C&D TECHNOLOGIES 5.500% 11/15/2026 73.000
CAPMARK FINL GRP 5.875% 5/10/2012 37.500
COLONIAL BANK 6.375% 12/1/2015 0.190
CS FINANCING CO 10.000% 3/15/2012 2.900
DUNE ENERGY INC 10.500% 6/1/2012 69.750
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 37.250
FAIRPOINT COMMUN 13.125% 4/1/2018 8.250
FAIRPOINT COMMUN 13.125% 4/2/2018 8.875
GENERAL MOTORS 7.125% 7/15/2013 31.061
GENERAL MOTORS 7.700% 4/15/2016 30.656
GENERAL MOTORS 9.450% 11/1/2011 28.750
GREAT ATLA & PAC 5.125% 6/15/2011 34.250
GREAT ATLA & PAC 6.750% 12/15/2012 34.000
GREAT ATLANTIC 9.125% 12/15/2011 25.167
IDLEAIRE TECH CP 13.000% 12/15/2012 0.900
KEYSTONE AUTO OP 9.750% 11/1/2013 47.500
LAMAR ADVERTISIN 2.875% 12/31/2010 98.125
LANDRY'S RESTAUR 9.500% 12/15/2014 98.000
LEHMAN BROS HLDG 1.985% 6/29/2012 10.000
LEHMAN BROS HLDG 4.500% 8/3/2011 21.125
LEHMAN BROS HLDG 4.700% 3/6/2013 21.750
LEHMAN BROS HLDG 4.800% 2/27/2013 21.750
LEHMAN BROS HLDG 4.800% 3/13/2014 22.875
LEHMAN BROS HLDG 5.000% 1/22/2013 20.750
LEHMAN BROS HLDG 5.000% 2/11/2013 20.650
LEHMAN BROS HLDG 5.000% 3/27/2013 20.000
LEHMAN BROS HLDG 5.000% 8/3/2014 21.250
LEHMAN BROS HLDG 5.000% 8/5/2015 20.400
LEHMAN BROS HLDG 5.100% 1/28/2013 19.500
LEHMAN BROS HLDG 5.150% 2/4/2015 21.750
LEHMAN BROS HLDG 5.250% 2/6/2012 21.750
LEHMAN BROS HLDG 5.250% 1/30/2014 19.625
LEHMAN BROS HLDG 5.250% 2/11/2015 20.650
LEHMAN BROS HLDG 5.500% 4/4/2016 22.375
LEHMAN BROS HLDG 5.625% 1/24/2013 23.500
LEHMAN BROS HLDG 5.750% 7/18/2011 23.375
LEHMAN BROS HLDG 5.750% 5/17/2013 21.500
LEHMAN BROS HLDG 6.000% 7/19/2012 22.625
LEHMAN BROS HLDG 6.000% 6/26/2015 20.750
LEHMAN BROS HLDG 6.000% 12/18/2015 20.750
LEHMAN BROS HLDG 6.000% 2/12/2018 21.750
LEHMAN BROS HLDG 6.200% 9/26/2014 20.000
LEHMAN BROS HLDG 6.625% 1/18/2012 22.000
LEHMAN BROS HLDG 8.050% 1/15/2019 21.750
LEHMAN BROS HLDG 8.400% 2/22/2023 19.000
LEHMAN BROS HLDG 8.500% 8/1/2015 19.750
LEHMAN BROS HLDG 8.500% 6/15/2022 18.250
LEHMAN BROS HLDG 8.800% 3/1/2015 21.750
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 21.750
LEHMAN BROS HLDG 9.500% 1/30/2023 21.750
LEHMAN BROS HLDG 9.500% 2/27/2023 20.000
LEHMAN BROS HLDG 10.000% 3/13/2023 20.750
LEHMAN BROS HLDG 10.375% 5/24/2024 18.625
LEHMAN BROS HLDG 11.000% 6/22/2022 21.750
LEHMAN BROS HLDG 11.000% 7/18/2022 20.500
LEHMAN BROS HLDG 11.000% 3/17/2028 20.500
LEHMAN BROS INC 7.500% 8/1/2026 12.000
LOCAL INSIGHT 11.000% 12/1/2017 22.500
MAGNA ENTERTAINM 7.250% 12/15/2009 5.000
MASSEY ENERGY CO 2.250% 4/1/2024 87.875
MOHEGAN TRIBAL 8.375% 7/1/2011 59.000
NETWORK COMMUNIC 10.750% 12/1/2013 18.500
NEWPAGE CORP 10.000% 5/1/2012 58.750
NEWPAGE CORP 12.000% 5/1/2013 27.250
PALM HARBOR 3.250% 5/15/2024 44.000
PL-CALL01/11 6.100% 1/15/2029 97.353
RAFAELLA APPAREL 11.250% 6/15/2011 74.438
RASER TECH INC 8.000% 4/1/2013 35.250
RESTAURANT CO 10.000% 10/1/2013 34.125
RESTAURANT CO 10.000% 10/1/2013 29.250
RJ TOWER CORP 12.000% 6/1/2013 1.000
SBARRO INC 10.375% 2/1/2015 45.500
SPHERIS INC 11.000% 12/15/2012 1.550
TDG-CALL01/11 7.750% 7/15/2014 104.230
TDG-CALL01/11 7.750% 7/15/2014 102.380
THORNBURG MTG 8.000% 5/15/2013 3.500
TIMES MIRROR CO 7.250% 3/1/2013 43.782
TOM'S FOODS INC 10.500% 11/1/2004 1.704
TRANS-LUX CORP 8.250% 3/1/2012 10.175
TRICO MARINE 3.000% 1/15/2027 4.375
TRICO MARINE SER 8.125% 2/1/2013 5.000
VERTIS INC 13.500% 4/1/2014 29.750
VERTIS INC 18.500% 10/1/2012 23.875
VESTA INSUR GRP 8.750% 7/15/2025 1.000
VIRGIN RIVER CAS 9.000% 1/15/2012 45.500
WCI COMMUNITIES 4.000% 8/5/2023 1.302
WCI COMMUNITIES 7.875% 10/1/2013 0.600
WOLVERINE TUBE 15.000% 3/31/2012 34.000
XJT-CALL12/10 11.250% 8/1/2023 99.000
*********
Monday's edition of the TCR delivers a list of indicative prices
for bond issues that reportedly trade well below par. Prices are
obtained by TCR editors from a variety of outside sources during
the prior week we think are reliable. Those sources may not,
however, be complete or accurate. The Monday Bond Pricing table
is compiled on the Friday prior to publication. Prices reported
are not intended to reflect actual trades. Prices for actual
trades are probably different. Our objective is to share
information, not make markets in publicly traded securities.
Nothing in the TCR constitutes an offer or solicitation to buy or
sell any security of any kind. It is likely that some entity
affiliated with a TCR editor holds some position in the issuers"
public debt and equity securities about which we report.
Each Tuesday edition of the TCR contains a list of companies with
insolvent balance sheets whose shares trade higher than $3 per
share in public markets. At first glance, this list may look like
the definitive compilation of stocks that are ideal to sell short.
Don't be fooled. Assets, for example, reported at historical cost
net of depreciation may understate the true value of a firm's
assets. A company may establish reserves on its balance sheet for
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equity securities trade in public market are determined by more
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A list of Meetings, Conferences and Seminars appears in each
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related conferences are encouraged. Send announcements to
conferences@bankrupt.com/
On Thursdays, the TCR delivers a list of recently filed
Chapter 11 cases involving less than $1,000,000 in assets and
liabilities delivered to nation's bankruptcy courts. The list
includes links to freely downloadable images of these small-dollar
petitions in Acrobat PDF format.
Each Friday's edition of the TCR includes a review about a book of
interest to troubled company professionals. All titles are
available at your local bookstore or through Amazon.com. Go to
http://www.bankrupt.com/books/to order any title today.
Monthly Operating Reports are summarized in every Saturday edition
of the TCR.
The Sunday TCR delivers securitization rating news from the week
then-ending.
For copies of court documents filed in the District of Delaware,
please contact Vito at Parcels, Inc., at 302-658-9911. For
bankruptcy documents filed in cases pending outside the District
of Delaware, contact Ken Troubh at Nationwide Research &
Consulting at 207/791-2852.
*********
S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter is a daily newsletter co-published
by Bankruptcy Creditors" Service, Inc., Fairless Hills,
Pennsylvania, USA, and Beard Group, Inc., Frederick, Maryland,
USA. Marites Claro, Joy Agravante, Rousel Elaine Tumanda, Howard
C. Tolentino, Joseph Medel C. Martirez, Denise Marie Varquez,
Philline Reluya, Ronald C. Sy, Joel Anthony G. Lopez, Cecil R.
Villacampa, Sheryl Joy P. Olano, Carlo Fernandez, Christopher G.
Patalinghug, and Peter A. Chapman, Editors.
Copyright 2010. All rights reserved. ISSN: 1520-9474.
This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding, electronic
re-mailing and photocopying) is strictly prohibited without prior
written permission of the publishers. Information contained
herein is obtained from sources believed to be reliable, but is
not guaranteed.
The TCR subscription rate is $775 for 6 months delivered via e-
mail. Additional e-mail subscriptions for members of the same
firm for the term of the initial subscription or balance thereof
are $25 each. For subscription information, contact Christopher
Beard at 240/629-3300.
*** End of Transmission ***