/raid1/www/Hosts/bankrupt/TCR_Public/110714.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
Thursday, July 14, 2011, Vol. 15, No. 193
Headlines
15-35 HEMPSTEAD: Has Access to Cash Collateral Until Aug. 31
11700 SAN JOSE: Seeks Plan Confirmation Despite Class 4 Rejection
ACORN ELSTON: Court OKs Reznick Group as Accountant
ACORN ELSTON: Cash Collateral Access Expires July 31
ADAMIS PHARMACEUTICALS: Recurring Losses Prompt Going Concern
AFFILIATED FOODS: Trustee Sues Board Over $11.5MM Check Fraud
ALL AMERICAN PET: R.R. Hawkins Raises Going Concern Doubt
ALLEN CAPITAL: RSAI Wants to Defer Plan Pending DLH Case Outcome
AMBAC FINANCIAL: NY Finance Dept. Defends $116-Mil. Claim
AMERICAN APPAREL: Q2 Sales of $132MM Flat Compared to Last Year's
AMERICAN APPAREL: Files Form S-8; Registers 10MM Common Shares
AMERICAN APPAREL: Dov Charney Discloses 43.0% Equity Stake
AMERICAN PACIFIC: Ch. 11 Trustee Taps Sullivan Hill as Counsel
AMERICANWEST BANCORP: Wants Plan Voting Postponed for 60 Days
ARCHBROOK LAGUNA: Philips Seeks Return of $230,000 in Products
ARTECITY PARK: Failed to Sale Terms Under DIP Loan, Says Corus
AVION POINT: Voluntary Chapter 11 Case Summary
BARNES BAY: Fights IMI Resort's $6.8 Million Commission Bill
BEAR ISLAND: Has Until Aug. 24 to Propose Chapter 11 Plan
BEARINGPOINT INC: Trustee Moving $1.9-Bil. Suit to Va. State Court
BERNARD L MADOFF: SIPC Opposes Mets Bid to Dodge $1-Billion Suit
BERNARD L MADOFF: Judge OKs $272-Mil. 1st Payment to Victims
BORDERS GROUP: Liquidation Seen as Nafaji Deal Collapses
BUCYRUS INTERNATIONAL: S&P Raises Corp. Credit Rating From 'BB+'
CC MEDIA: FMR LLC Owns 9.14% of Class A Common Stock
CDC PROPERTIES: Court Modifies Prior Cash Collateral Order
CENTURION PROPERTIES: Files First Amended Plan of Reorganization
CERBERUS CAPITAL: Restructures $1.3-Bil. of Hotel Debt
CITY OF CAMDEN: Moody's Reviews 'Ba2' Rating for Downgrade
CITY NATIONAL BANCSHARES: Barbara Bell Resigns from Board
CLAIRE'S STORES: European Unit Head to Leave Post in November
COMMERCIAL VEHICLE: FMR LLC Discloses 3.3% Equity Stake
CONGRESS SAND: Has Agreement With Patriot on Value of Equipment
CONTINENTAL COMMON: Plan Outline Hearing Scheduled for July 19
CONTINENTAL COMMON: PNC OKs Limited Use of Cash Collateral
CROATAN SURF: Mediator to Report on Settlement Conference July 18
CRYSTAL CATHEDRAL: Diocese Taps Advisers to Mull Bid for Property
CRYSTAL CATHEDRAL: To Consider Alternative Offers for Church
CRYSTALLEX INT'L: FMR LLC No Longer Owns Shares
DEBUT BROADCASTING: Issues Promissory Note to Diversified
DIMENSION HEALTH: Moody's Affirms B3 Bond Rating; Outlook Stable
DYNEGY INC: In Talks to Amend Loans for New Ownership Structure
DYNEGY INC: Carolyn Burke to Serve as EVP and CAO
EL PASO HOUSING: Moody's Lifts Series 2000D Bond Rating to 'Ba2'
ELLICOTT SPRINGS: U.S. Trustee Seeks to Convert Case to Chapter 7
ENCOMPASS GROUP: Posts $2.4 Million Net Loss in Q3 Ended March 31
ENSIGN FEDERAL: NCUA Win Court Not to Foreclose Building
EVERGREEN INT'L: Moody's Upgrades Corp. Family Rating to 'B3'
EVERGREEN SOLAR: Receives Non-Compliance Notice from Nasdaq
FIDDLER'S CREEK: Court Denies 'Improper Solicitation' Motion
FIDDLER'S CREEK: Court Denies U.S. Bank's Motion to Designate
FISHERMAN'S WHARF: Bid to Extend Time to Perform under Plan Denied
FISHERMAN'S WHARF: To Pay Bush Ross Remaining Balance of Claim
FRANCIS GROUP: Case Summary & 9 Largest Unsecured Creditors
GENBAND HOLDINGS: S&P Puts 'B' Corp. Credit Rating on Watch Neg.
GOLDENPARK LLC: Defers Lender's Lift Stay Motion Until Oct. 6
HOMELAND SECURITY: Completes Acquisition of Default for $480,000
HOPE SPRINGS: Court Dismisses Case Pursuant to U.S. Bank Deal
HOWREY LLP: Citibank Objects to Employees' Bonuses
HRD CORPORATION: Voluntary Chapter 11 Case Summary
ICTS INTERNATIONAL: Mayer Hoffman Raises Going Concern Doubt
INWOOD HEIGHTS: Case Summary & 9 Largest Unsecured Creditors
IRWIN MORTGAGE: Case Summary & 25 Largest Unsecured Creditors
ISAACSON STRUCTURAL: Cash Collateral Use Expires
ISAACSON STRUCTURAL: Creditors' Panel Hires Nixon Peabody
J RAY: Voluntary Chapter 11 Case Summary
JACKSON HEWITT: Committee Taps BDO as Financial Advisor
JEFFERSON COUNTY: Ala. Seeks to Help County Avoid Bankruptcy
K-V PHARMACEUTICAL: Offers to Exchange $225MM Sr. Secured Notes
LA JOLLA: Has 45.79 Million Outstanding Common Shares
LANDAMERICA FIN'L: 4th Circuit Says Severance Claims Have Priority
LEHMAN BROTHERS: Has Deal to Hold in Abeyance Creditors' Plan
LEHMAN BROTHERS: LBI Trustee & Barclays Has Deal on Bond Posting
LEHMAN BROTHERS: Proposes to File Amended Plan for SunCal Debtors
LEHMAN BROTHERS: Proposes to Expand Scope of Directors' Cost Fund
LEHMAN BROTHERS: Seeks OK for Moulton for Foreclosure Litigation
CATHOLIC CHURCH: Confirmation Hearing on Wilm. Plan Resumes Today
CATHOLIC CHURCH: Wilm. Lay Panel Wins OK to Hire Buck Consultants
CATHOLIC CHURCH: Spokane in Mediation Over Sex Abuse Claims
LEXICON UNITED: Shareholders OK Accres Global Acquisition
LOCATEPLUS HOLDINGS: Announces Resignations of Directors
LOS ANGELES DODGERS: MLB Gets Limited Discovery of Dodgers' Lender
LOUISVILLE ORCHESTRA: Musicians Reject "Per-Service" Model
LOWER BUCKS: To Continue Operations as Stand-Alone Hospital
MARSH & MCLENNAN: Moody's Gives (P)Ba1 Pref. Stock Shelf Rating
METROPARK USA: Files Schedules of Assets & Liabilities
METROPARK USA: Can Use Wells Fargo Cash Collateral Until July 31
MIA REED: Case Summary & Largest Unsecured Creditor
MICROSEMI CORP: S&P Assigns 'BB-' Corporate Credit Rating
MIG INC: Asks Supreme Court to Revive Suit vs. Paul Weiss
MORTGAGES LTD: Greenberg Traurig Demands Docs. in $200M Fraud Suit
MPL 2: S&P Assigns 'B' Corporate Credit Rating
MSR RESORT: Committee Retains Alston & Bird LLP as Counsel
NORTH ATLANTIC: Moody's Assigns 'B3' Corporate Family Rating
NORTH ATLANTIC: S&P Assigns Preliminary 'B-' Corp. Credit Rating
OMEGA NAVIGATION: Obtains Interim Approval of First Day Motions
OMEGA NAVIGATION: Updated Chapter 11 Case Summary
OPTI CANADA: To Pursue Restructuring Agreement with Bondholders
ORAGENICS INC: Draws $500,000 on KFLP Revolving Credit Facility
ORLANDO COUNTRY: Case Summary & 5 Largest Unsecured Creditors
PEABODY ENERGY: Moody's Affirms 'Ba1' Corporate Family Rating
PLATINUM ENERGY: Pacific to Buy 7.34-Mil. Shares for $11-Mil.
POINT BLANK: Has Until Oct. 14 to Propose Chapter 11 Plan
PRO-TRAK TRAILERS: Voluntary Chapter 11 Case Summary
PURSELL HOLDINGS: Court Approves Cassidy Turley as Leasing Agents
QIMONDA RICHMOND: Plan Confirmation Hearing Set for Sept. 19
QR PROPERTIES: Briefs in Webster Bank Request Due on July 14
QUANTUM FUEL: Files Form S-3; Registers 4.81MM Common Shares
QUINCY MEDICAL: Section 341(a) Meeting Slated for Aug. 2
QUINCY MEDICAL: Taps Casner & Edwards as Chapter 11 Counsel
QUINCY MEDICAL: Court Approves Epiq Bankruptcy as Claims Agent
QUINCY MEDICAL: Selects Navigant Capital as Financial Advisor
QUINCY MEDICAL: Proposes to Employ Bello Black as Labor Counsel
RAY ANTHONY: Amends Stipulation to Sell Remaining Cranes
ROCK & REPUBLIC: Great American Hosts Live Webcast Auction July 26
RVTC LIMITED: Section 341(a) Meeting Set for Aug. 1
RVTC LIMITED: Proposes to Employ Integra Realty as Appraiser
RVTC LIMITED: Gets Interim Order to Hire Cox Smith as Attorney
SCI REAL ESTATE: Lease Decision Period Extended Until Sept. 9
SEASON'S AT BIRDNEK: Sec. 341 Creditors' Meeting Set for July 28
SEDONA DEVELOPMENT: Wants Access to Cash Collateral Until Sept. 30
SEDONA DEVELOPMENT: Wants Until Aug. 9 to Solicit Plan Acceptances
SEDONA DEVELOPMENT: Initial Confirmation Hearing Set for Aug. 9
SEQUENOM INC: Signs Sale and Supply Agreement with Illumina
SEQUENOM INC: FMR LLC Discloses 14.99% Equity Stake
SHOPS AT PRESTONWOOD: To Hire Sayles Werbner as Litigation Counsel
SIGNATURE STYLES: Creditors Panel Opposes Patriarch Financing
SMART-TEK SOLUTIONS: Amends Sept. 30 Quarterly Report
SOURCEHOV LLC: S&P Assigns 'B' Corporate Credit Rating
SPANISH BROADCASTING: To Effect a 1-for-10 Reverse Stock Split
STELLAR GT TIC: Files Schedules of Assets and Liabilities
STELLAR GT TIC: Court to Review Auction Protocol on Aug. 1
STATION CASINOS: Unit Sues Arizona Lounge Over Use of "Revolver"
STILLWATER MINING: USW International Ratifies New Labor Contract
STILLWATER MINING: Expects to Report $222.6MM Revenue for Q2 2011
STILLWATER MINING: To Acquire Peregrine for $487.1 Million
TAWK DEVELOPMENT: Has Until Today to File Reorganization Plan
TAYLOR BEAN: Freddie Mac Objects to $1.6 Billion Settlement
TAYLOR CAPITAL: Fitch Affirms, Withdraws 'B-' L/T IDR
THERMOENERGY CORP: Issues Preferred Shares and Warrants
TOMMY @ 718: Voluntary Chapter 11 Case Summary
TRICO MARINE: Tennenbaum Says Plan Shortchanged $27-Mil. Claim
TURNING STONE: S&P Withdraws 'B+' Issuer Credit Rating
UNIGENE LABORATORIES: Richard Levy Discloses 44.2% Equity Stake
USA UNITED: Files for Bankruptcy to Address Financial Woes
VENTAS CAPITAL: Moody's Upgrades Senior Debt Shelf From (P)Ba1
VERTIS HOLDINGS: Wants Former CEO's $5.8 Million Pay Claim Reduced
WARNER MUSIC: Obtains Requisite Consents on Tender Offers
WASHINGTON MUTUAL: Creditors Fight Attacks on JPMorgan Settlement
WL HOMES: Zurich Balks at Builders Move to Lift Stay
WOODS CANYON: Voluntary Chapter 11 Case Summary
WYNN RESORTS: Fitch Upgrades Issuer Default Rating to 'BB'
ZANETT INC: Fails to Comply with NASDAQ's Bid Price Requirement
* Tight Credit Conditions Will Lead to Restructurings, Defaults
* Skadden Restructuring Pro Joins DLA Piper
* Recent Small-Dollar & Individual Chapter 11 Filings
*********
15-35 HEMPSTEAD: Has Access to Cash Collateral Until Aug. 31
------------------------------------------------------------
Judge Gloria M. Burns of the U.S. Bankruptcy Court for the
District of New Jersey gave Karen L. Gilman, Esq., the Chapter 11
Trustee for 15-35 Hempstead Properties, LLC and Jackson 299
Hempstead LLC, final authority to use cash collateral subject to
the valid and perfected liens of secured creditor, New York
Community Bank.
The Trustee is also authorized to borrow NYCB up to an aggregate
amount of $400,000, which includes the $140,000 advance made
pursuant to previous cash collateral orders. The Trustee is
authorized to use those proceeds and the rents generated pursuant
to a budget up to Aug. 31, 2011.
All funds advanced will constitute secured claims against the
Debtors and their estates pari passu with the prepetition liens of
NYCB in each of the Debtor's assets, subject only to the payment
of the carve-out of $50,000 to unsecured creditors, the proceeds,
if any, of the real estate tax appeals, U.S. Trustee Quarterly
Fees, and professional administrative fees and expenses allowed in
the Chapter 11 cases.
The Trustee is authorized to utilize funds and continue to utilize
the rents generated from the residential and commercial units
located at 101 Boardwalk, in Atlantic City, New Jersey, only so
long as:
(i) the Trustee retains an auctioneer for the purpose of
auctioning the Property;
(ii) an auction sale of the Property is conducted as soon as
practicable, provided that if an auction is not conducted
before September 30, 2011, the authorization provided
herein will be deemed withdrawn, unless further extended
by NYCB;
(iii) the Interim Order prohibiting Debtor's principals and any
persons or agents acting on their behalf or at their
request from accessing Debtor's Property and for related
relief dated May 13, 2011, remains in full force and
effect; and
(iv) funds are utilized solely for the purposes of paying
postpetition public utility obligations, necessary
payroll, the fees to the Court retained project manager,
emergency expenses for necessary maintenance or repair
approved by NYCB, and necessary insurance premiums and
insurance premium financing expenses.
About 15-35 Hempstead Properties
15-35 Hempstead Properties, LLC and Jackson 299 Hempstead, LLC,
own real property at 101 Boardwalk in Atlantic City, New Jersey.
They filed for Chapter 11 bankruptcy protection (Bankr. D. N.J.
Case Nos. 10-43178 and 10-43180) on Oct. 26, 2010. Albert A.
Ciardi, III, Esq., at Ciardi Ciardi & Astin, serve as counsel to
the Debtors. The Debtors each estimated assets and debts at $10
million to $50 million.
11700 SAN JOSE: Seeks Plan Confirmation Despite Class 4 Rejection
-----------------------------------------------------------------
11700 San Jose Boulevard, LLC, asks the U.S. Bankruptcy Court for
the Middle District of Florida, Jacksonville Division, to confirm
its amended plan of reorganization despite the rejection by Class
4 - Secured Claim of the Bank of the Ozarks.
The Debtor relates that following the confirmation hearing held on
June 17, the Court entered an order finding that the requirements
of Section 1129(a) of the Bankruptcy Code were met, with the
exception of Section 1129(a)(8).
Kevin B. Paysinger, Esq., at Bankruptcy Law Firm of Lansing J.
Roy, P.A., in Jacksonville, Florida, asserts that the Court may
confirm the plan over objections of the class which has not
accepted the Plan pursuant to Section 1129(b).
The Debtor maintains that the Plan does not discriminately
unfairly and is fair and equitable to the creditor in Class 4 as
an impaired class.
A final evidentiary hearing on the Debtor's request is scheduled
for Sept. 15, 2011, at 1:30 p.m.
The Plan proposed by the Debtor provides for payment of allowed
administrative, priority, secured, and unsecured claims. The
Debtor will make payments with money obtained from owning and
leasing Mandarin South Shopping Center in Jacksonville, Florida
A full-text copy of the Plan, as amended on May 11, 2011, is
available at http://bankrupt.com/misc/11700SANJOSE_AmndedPlan.pdf
About 11700 San Jose
11700 San Jose Boulevard, LLC, is a Florida Limited Company, which
owns and leases out a piece of commercial real estate in
Jacksonville, Florida.
11700 San Jose filed for Chapter 11 bankruptcy protection (Bankr.
M.D. Fla. Case No. 10-06484) on July 27, 2010. Kevin B.
Paysinger, Esq., at Bankruptcy Law Firm of Lansing J. Roy, assists
the Debtor in its Chapter 11 case. The Debtor disclosed
$11,268,667 in assets and $7,782,512 in liabilities as of the
Petition Date. The U.S. Trustee was unable to form a creditors
committee.
An affiliate, Mardi Investments #2, LLC, filed a separate Chapter
11 petition (Bankr. M.D. Fla. Case No. 10-05524) on June 25,
2010.
ACORN ELSTON: Court OKs Reznick Group as Accountant
---------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of New York
has approved Acorn Elston, LLC's application to employ Reznick
Group as accountant.
The firm will assist the Debtor in the preparation of its monthly
operating reports and will provide its services to the Debtor in a
cost effective, efficient, and timely manner.
The Debtor will pay the firm based on the hourly rates of its
professionals
Designations Hourly Rates
------------ ------------
Senior Principal $450-$550
Principal $400-$425
Senior Manager $325-$390
Manager $240-$325
Senior Associate $175-$235
Associate $125-$175
Paraprofessional $75-$125
The Debtor assures the Court that the firm is a "disinterested
person" within the meaning of Section 101(14) of the Bankruptcy
Code.
About Acorn Elston, LLC
New York City-based Acorn Elston, LLC, owns the Elston Plaza
Shopping Center, a grocery-anchored retail shopping center in
Chicago, Illinois. The Company filed for Chapter 11 protection
(Bankr. S.D.N.Y. Case No. 10-14807) on Sept. 11, 2010.
Cadwalader, Wickersham & Taft LLP, in New York, was tapped to
represent the Debtor in the Chapter 11 case effective April 19,
2011, after Kasowitz Benson Torres & Friedman withdrew as counsel.
The Debtor also tapped The Reznick Group as its accountant, and
D.E. Shaw Real Estate Adviser LLC as its financial advisor. The
Debtor disclosed $21,929,346 in assets and $16,488,389 in
liabilities as of the Chapter 11 filing.
The Court appointed C. Michelle Panovich as receiver with respect
to the Elston Plaza Shopping Center, and its rents, income and
proceeds.
ACORN ELSTON: Cash Collateral Access Expires July 31
----------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of New York
entered, on June 30, 2011, a fifth interim order, granting Acorn
Elston, LLC, permission to continue using cash collateral of Road
Bay Investments, LLC, as successor-in-interest to Allstate Life
Insurance Company, nunc pro tunc, for the period from July 1,
2011, through the earliest to occur of (a) the entry by the Court
of an order terminating the Receiver's use of cash collateral; (b)
the entry by the Court of a final order granting to the Lender
relief from the automatic stay; and (c) July 31, 2011.
As reported in the TCR on Feb. 14, 2011, Road Bay contends that,
as of the Petition Date, it is owed by the Debtor $18.0 million
pursuant to a $15 million Mortgage Note, dated April 19, 2007.
The obligations of the Debtor under the Note are guaranteed by
John B. Coleman, the sole member of the Debtor.
As adequate protection for any diminution in value of Road Bay's
collateral, the Debtor will grant the lender perfected
postpetition security interests and superpriority administrative
claim status, subject to carve-out. As further adequate
protection, the receiver will provide adequate protection payments
to the lender in the form of (i) monthly payments (calculated at
the non-default contract rate of 5.93% on a principal sum of
$15.9 million) in the amount of $78,700.
About Acorn Elston, LLC
New York City-based Acorn Elston, LLC, owns the Elston Plaza
Shopping Center, a grocery-anchored retail shopping center in
Chicago, Illinois. The Company filed for Chapter 11 protection
(Bankr. S.D.N.Y. Case No. 10-14807) on Sept. 11, 2010.
Cadwalader, Wickersham & Taft LLP, in New York, was tapped to
represent the Debtor in the Chapter 11 case effective April 19,
2011, after Kasowitz Benson Torres & Friedman withdrew as counsel.
The Debtor also tapped The Reznick Group as its accountant, and
D.E. Shaw Real Estate Adviser LLC as its financial advisor. The
Debtor disclosed $21,929,346 in assets and $16,488,389 in
liabilities as of the Chapter 11 filing.
The Court appointed C. Michelle Panovich as receiver with respect
to the Elston Plaza Shopping Center, and its rents, income and
proceeds.
ADAMIS PHARMACEUTICALS: Recurring Losses Prompt Going Concern
-------------------------------------------------------------
Adamis Pharmaceuticals Corporation filed this month its annual
report on Form 10-K for the fiscal year ended March 31, 2011.
Mayer Hoffman McCann P.C., in Boca Raton, Fla., expressed
substantial doubt about Adamis Pharmaceuticals' ability to
continue as a going concern. The independent auditors noted that
the Company has incurred recurring losses from operations and has
limited working capital to pursue its business alternatives.
The Company reported a net loss of $6.98 million on $0 revenue for
the fiscal year ended March 31, 2011, compared with a net loss of
$6.71 million on $290,288 of revenue for the fiscal year ended
March 31, 2010.
The Company's balance sheet at March 31, 2011, showed
$1.73 million in total assets, $3.11 million in total liabilities,
and a stockholders' deficit of $1.38 million.
A copy of the Form 10-K is available at http://is.gd/A2FbTP
San Diego, Calif.-based Adamis Pharmaceuticals Corporation is an
emerging pharmaceutical company engaged in the development and
commercialization of a variety of specialty pharmaceutical
products. Its products are concentrated in major therapeutic
areas including oncology (cancer), immunology and infectious
diseases (viruses) and allergy and respiratory.
AFFILIATED FOODS: Trustee Sues Board Over $11.5MM Check Fraud
-------------------------------------------------------------
Ian Thoms at Bankruptcy Law360 reports that the bankruptcy trustee
for Affiliated Foods Southwest Inc. sued the Company's former
board of directors in Arkansas on Thursday for failing to spot an
$11.5 million check-kiting scheme that defrauded U.S. Bank NA and
other lenders.
In his complaint, Law360 relates, trustee Richard L. Cox said the
board members breached their fiduciary duties of care and loyalty
and were negligent in missing the company's dire financial
condition and its former executives' bank fraud.
About Affiliated Foods Southwest
Little Rock, Arkansas-based Affiliated Foods Southwest, Inc., and
its affiliates, including Shur-Valu Stamps, Inc., filed for
Chapter 11 bankruptcy (Bankr. E.D. Ark. Case No. 09-13178) on
May 5, 2009. W. Michael Reif, Esq., at Dover Dixon Horne,
represents the Debtors in their restructuring efforts. The
Debtors estimated assets between $10 million and $50 million and
debts between $100 million and $500 million.
Rather than proceed with a disclosure statement and plan of
reorganization, both Affiliated Foods and ShurValu engaged in
an orderly liquidation followed by conversion to Chapter 7 on
August 13, 2009. M. Randy Rice became the Chapter 7 trustee in
the ShurValu matter.
Mr. Rice, as the trustee in the ShurValu case, later chose to put
the wholly owned subsidiary -- Supermarket Investors, Inc. -- into
a separate Chapter 7 on October 13, 2009. The court thereafter
appointed Mr. Rice as the trustee in the SII proceeding.
ALL AMERICAN PET: R.R. Hawkins Raises Going Concern Doubt
---------------------------------------------------------
All American Pet Company, Inc., filed on July 7, 2011, its annual
report on Form 10-K for the fiscal year ended Dec. 31, 2010.
R. R. Hawkins & Associates International, a PC, in Los Angeles,
expressed substantial doubt about All American Pet's ability to
continue as a going concern. The independent auditors noted that
the Company has incurred net losses since inception, retained
deficit and negative working capital.
The Company reported a net loss of $7.44 million on $20 of net
sales for 2010 (revenue from sales of super-premium dog food
products of $146,598 less marketing and product placement fees of
$146,578), compared with a net loss of $2.01 million on $0 revenue
for 2009.
The Company's balance sheet at Dec. 31, 2011, showed $1.08 million
in total assets, $4.45 million in total liabilities, and a
stockholders' deficit of $3.37 million.
A copy of the Form 10-K is available at http://is.gd/NxLdYt
All American Pet Company, Inc., a reporting public company with
executive offices in Beverly Hills, California, was incorporated
on Feb. 13, 2003. The Company produces, markets, and sells super
premium dog food under the brand names Grrr-nola(R)Natural Dog
Food and BowWow Breakfast(R) Heart Healthy Dog Food.
ALLEN CAPITAL: RSAI Wants to Defer Plan Pending DLH Case Outcome
----------------------------------------------------------------
Richard S. Allen, Inc. (RSAI) and Richard S. Allen, debtor-
affiliates of Allen Capital Partners LLC, ask the U.S. Bankruptcy
Court for the Northern District of Texas to postpone disclosure
statement and confirmation hearings and extend exclusivity for
Debtors Allen and RSAI.
RSAI and Allen specifically ask that the Court to:
-- extend the deadline for RSAI and Allen to file an amended
Disclosure Statement and Plan to Sept. 15, 2011;
-- reset the hearing on RSAI and Allen's Disclosure Statement
to a date on or after Oct. 15;
-- reset the confirmation hearing on Allen and RSAI's Plan to a
date on or after Nov. 15;
-- set corresponding deadlines to object to the Disclosure
Statement and Plan; and
-- extend the exclusive period for Allen and RSAI to the date
of the confirmation hearing.
The Debtors relate that the Court reset the confirmation hearing
for ACP and DLH to Aug. 29 through Sept. 1, and on June 24, the
Court entered an order extending exclusivity for ACP and DLH to
Sept. 2.
The Debtors add that the extension will assure that Allen and RSAI
have the benefit of knowing the final outcome of the DLH and ACP
Plan before proceeding with amending and pursuing approval and
confirmation of their Disclosure Statement and Plan.
The Debtors note that no hearing will be conducted hereon unless a
written response is filed with the clerk of the U.S. Bankruptcy
Court before close of business on July 29, 2011,
DLH, Allen Plan
ACP and DLH's proposed reorganization plan contemplates that the
Debtors will obtain sufficient exit financing from sales and loans
from insiders to enable them to pay all Administrative and non-tax
Priority Claims in full on the effective date. The Debtors
believe that those funds will be available. ACP and DLH have
actively negotiated potential joint ventures governing vertical
development and land sales at The Allen Group-Kansas City, LLC or
LPKC and DLH, Mark MacDonald, Esq., at MacDonald + MacDonald,
P.C., in Dallas Texas, relates.
On May 3, 2011, LPKC executed a Joint Venture Option Agreement
with ST Investors - LPKC, Inc which will provide build to suit
financing and will provide a funding source, if required to meet a
minimum take down of land under LPKC's modified option with BNSF.
The Fifth Amendment to BNSF Option was executed on May 4, 2011.
DLH has a letter of intent for its joint venture and is completing
final documentation.
Since the original Plan, Debtors have met with representatives of
the Official Committee of Unsecured Creditors. The Debtors made a
number of changes in the Plan to encourage the Committee to
support the Plan. The Committee now supports the Plan. The
Plan incorporates several material changes made at the specific
request of the Committee, including:
(A) The Plan now clarifies that Debtors are offering each
Unsecured Creditor the ability to elect that any part of
its claim can be reduced by 50% and paid on an accelerated
basis compared to other unsecured claims. With the
exception of Ed Romanov, a disputed ACP creditor who
reached a partial settlement, and with the exception of the
holders of Unsecured Claims who are insiders of the Debtor,
every Unsecured Creditor can accept the blended claim
recovery which they deem best for them. All allowed
Unsecured Creditors electing 100% payment now receive
interest of at least 2% per annum on that portion of its
claim.
(B) The Plan now provides for a minimum distribution each year
after the first year from the Effective Date to Unsecured
Creditor Class 4. If the minimum is not met, Allowed
Unsecured Claims are entitled to receive added interest.
(C) All cash balances of the Reorganized Debtors in excess of
the cash required for working capital needs is required to
be distributed to Creditors.
(D) Reorganized DLH would be required to distribute at the end
of each calendar quarter all cash exceeding $2.75 Million.
Reorganized ACP would be required to distribute all cash
exceeding $1.5 Million at the end of each calendar quarter
in the first two years after the Effective Date. The cash
reserve requirement for Reorganized ACP is reduced to $1.25
Million in the third year after the Effective Date, and to
$1.0 Million in the fourth and subsequent years after the
Effective Date.
(E) Reorganized ACP and Reorganized DLH will each have at least
one member of the Board of Directors representing non-
insider Unsecured Creditors until all non-insider Unsecured
Claims in that entity have been paid in accordance with the
Plan.
(F) Substantial consummation has been redefined as including
completion of all acts required to be undertaken within 90
days after the Effective Date.
(G) The Committee will continue in existence until the
Consummation Date under the Plan, rather than the Effective
Date.
The Debtors also filed with the Court on May 4, 2011, a disclosure
statement for the Amended Fifth Joint Plan, which is substantially
similar to the May 18 disclosure statement.
Full-text copies of the Amended Disclosure Statements are
available for free at:
http://bankrupt.com/misc/DLHMaster_May18DS.pdf
http://bankrupt.com/misc/DLHMaster_May4DS.pdf
The confirmation hearing on the Debtors' Amended Fifth Joint Plan
of Reorganization was scheduled to commence on June 21, 2011.
However, at that hearing, counsel for the Debtors announced that
negotiations over certain objections to the Plan were still
ongoing and therefore a continuance of the confirmation hearing
was necessary. The Court commenced the confirmation hearing on
June 21, 2011, and recessed hearing on confirmation of the Plan
until Aug. 28, 2011, or such earlier date as the Court may make
available.
About Allen Capital
Allen Capital Partners LLC and subsidiary DLH Master Land Holding
LLC, are the developers of Dallas Logistics Hub, a 6,000-acre
multimodal logistics park 12 miles (19 kilometers) from downtown
Dallas.
Allen Capital Partners, LLC, dba The Allen Group, filed for
Chapter 11 bankruptcy protection (Bankr. N.D. Tex. Case No. 10-
30562) on Jan. 25, 2010. Mark MacDonald, Esq., at MacDonald +
MacDonald, P.C., represents the Debtor. Lain, Faulkner & Co. is
the Debtor's financial advisor. The Company disclosed
$220,325,201 in assets and $160,622,236 in liabilities as of the
Chapter 11 filing.
The Debtor's affiliate -- DLH Master Land Holding, LLC, dba The
Allen Group -- filed a separate Chapter 11 bankruptcy petition.
Another affiliate, Visalia, California-based Richard S. Allen,
Inc., filed for Chapter 11 bankruptcy protection (Bankr. N.D.
Texas Case No. 10-33211) on May 3, 2010. Patrick J. Neligan, Jr.,
Esq., at Neligan Foley LLP, represents the Debtor. The Company
disclosed $76,158,469 in assets and $53,728,982 in liabilities as
of the petition date.
AMBAC FINANCIAL: NY Finance Dept. Defends $116-Mil. Claim
---------------------------------------------------------
As reported in the June 1, 2011 edition of the Troubled Company
Reporter, Ambac Financial Group, Inc., is asking the Bankruptcy
Court to disallow the City of New York Department of Finance's
Claim No. 4 for $116,817,949. The Debtor says CNYDF has not
identified or explained the basis for its assessment of
approximately $77.9 million in additional taxes and approximately
$39 million in interest for the tax years 2000-2010.
In response to the claim objection, the CNYDF contends that Ambac
Financial failed to offer evidence to demonstrate the alleged
erroneousness of the deficiency assessed in its statutorily
derived tax claim and the methodology used to calculate that
deficiency. Michael A. Cardozo, Esq., corporate counsel of the
City of New York, contends that the Debtor silently relies on a
burden shifting tactic to buttress nearly its entire objection to
the CNYDF Claim. The Debtor, however, fails to cite any legal
authority whatsoever supporting its position that the Claim must
be disallowed and expunged, he asserts.
The Court adjourned the hearing to consider the Debtor's objection
to CNYDF's Claim from July 25, 2011 to August 10, 2011.
The Court earlier adjourned the hearing from July 19, 2011 to July
25, 2011.
About Ambac Financial
Ambac Financial Group, Inc., headquartered in New York City, is a
holding company whose affiliates provided financial guarantees and
financial services to clients in both the public and private
sectors around the world.
Ambac Financial filed a voluntary petition for relief under
Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D.N.Y. Case No.
10-15973) in Manhattan on Nov. 8, 2010. Ambac said it will
continue to operate in the ordinary course of business as "debtor-
in-possession" under the jurisdiction of the Bankruptcy Court and
in accordance with the applicable provisions of the Bankruptcy
Code and the orders of the Bankruptcy Court.
Ambac's bond insurance unit, Ambac Assurance Corp., did not file
for bankruptcy. AAC is being restructured by state regulators in
Wisconsin. AAC is domiciled in Wisconsin and regulated by the
Office of the Commissioner of Insurance of the State of Wisconsin.
The parent company is not regulated by the OCI.
Ambac's consolidated balance sheet -- which includes non-debtor
Ambac Assurance Corp -- showed $30.05 billion in total assets,
$31.47 billion in total liabilities, and a $1.42 billion
stockholders' deficit, at June 30, 2010.
On an unconsolidated basis, Ambac said in a court filing that
it has assets of ($394.5 million) and total liabilities of
$1.6826 billion as of June 30, 2010.
Bank of New York Mellon Corp., as trustee to seven different types
of notes, is listed as the largest unsecured creditor, with claims
totaling about $1.62 billion.
Peter A. Ivanick, Esq., Allison H. Weiss, Esq., and Todd L.
Padnos, Esq., at Dewey & LeBoeuf LLP, serve as the Debtor's
bankruptcy counsel. The Blackstone Group LP is the Debtor's
financial advisor. Kurtzman Carson Consultants LLC is the claims
and notice agent. KPMG LLP is tax consultant to the Debtor.
Anthony Princi, Esq., Gary S. Lee, Esq., and Brett H. Miller,
Esq., at Morrison & Foerster LLP, in New York, serve as counsel
to the Official Committee of Unsecured Creditors. Lazard Freres
& Co. LLC is the Committee's financial advisor.
AMERICAN APPAREL: Q2 Sales of $132MM Flat Compared to Last Year's
-----------------------------------------------------------------
American Apparel, Inc., announced comparable store sales were flat
for the second quarter of 2011 versus a decline of 16% reported
for the same quarter last year. On an average US dollar basis the
Company experienced a 5% increase due to the strength of certain
international currencies. In addition, online sales increased 19%
when compared to the same quarter last year and wholesale sales
declined 4%. Total sales for the 2011 second quarter were $132
million, essentially flat when compared to the same quarter last
year. During the 2011 second quarter, the Company had an average
of 256 stores in operation versus an average of 280 stores during
the 2010 second quarter.
According to Dov Charney, Chairman and Chief Executive Officer,
"We are pleased with recent sales momentum. In the month of June
we recorded an increase of 3% in comparable store sales on a
constant currency basis. On an average US dollar basis we
experienced a 9% increase. Approximately 40% of our stores are
located outside the United States.
On April 26, 2011, we announced we received $14.2 million in new
capital from a group of private investors led by Canadian
financier Michael Serruya and Delavaco Capital. This investment
helped stabilize our capital structure and created positive sales
momentum through prudent investments in product.
With a continued emphasis on improving manufacturing efficiency,
and despite the effect of cotton price increases, we believe ours
will be a story of improving sales, improving margins and
improving EBITDA. Our focus will be to optimize product mix in
stores, the in-store customer experience and the overall
profitability of our store base."
Beginning for the third quarter 2011, the Company will report
comparable store sales as the combination of sales for its
comparable stores and online channel. On this basis, comparable
store sales for the second quarter increased 2%, and for June 2011
the increase was 6%.
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 Sept. 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.
American Apparel reported a net loss of $86.31 million on
$532.99 million of net sales for the year ended Dec. 31, 2010,
compared with net income of $1.11 million on $558.77 million of
net sales during the prior year.
The Company's balance sheet at March 31, 2011, showed
$333.95 million in total assets, $283.12 million in total
liabilities, and $50.83 million in total stockholders' equity.
The Wall Street Journal reports that Skadden, Arps, Slate, Meagher
& Flom has been advising the company on its recent restructuring
efforts alongside investment bank Rothschild Inc.
In April 2011, American Apparel said it raised $14.9 million in
rescue financing from a group of investors led by Canadian
financier Michael Serruya and private equity firm Delavaco Capital
Corp., allowing the casual clothing retailer to meet obligations
to its lenders for the time being.
Going Concern Doubt
Marcum LLP, in New York, in its audit report on American Apparel's
financial statements for the year ended Dec. 31, 2010, expressed
substantial doubt about the Company's ability to continue as a
going concern.
As of April 30, 2011, the Company had approximately $8,000,000 of
cash, approximately $8,900,000 of availability for additional
borrowings and $46,100,000 outstanding on the credit facility
under the BofA Credit Agreement and $1,400,000 of availability for
additional borrowings and $4,000,000 outstanding on the credit
facility under the Bank of Montreal Credit Agreement. As May 10,
2011, the Company had approximately $5,941,000 available for
borrowing under the BofA Credit Agreement and $1,481,000 available
under the Bank of Montreal Credit Agreement.
The Company incurred a loss from operations of $13,091,000 for the
three months ended March 31, 2011, compared to a loss from
operations of $21,556,000 for the three months ended March 31,
2010. The current operating plan indicates that losses from
operations may be incurred for all of fiscal 2011.
"If we are not able to timely, successfully or efficiently
implement the strategies that we are pursuing to improve our
operating performance and financial position, obtain alternative
sources of capital or otherwise meet our liquidity needs, we may
need to voluntarily seek protection under Chapter 11 of the U.S.
Bankruptcy Code," the Company said following its first quarter
results.
AMERICAN APPAREL: Files Form S-8; Registers 10MM Common Shares
--------------------------------------------------------------
American Apparel, Inc., filed with the U.S. Securities and
Exchange Commission a Form S-8 registration statement registering
10 million shares of common stock issuable under the Company's
2011 Omnibus Stock Incentive Plan. A full-text copy of the
prospectus is available for free at http://is.gd/OZd4Sn
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 Sept. 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.
American Apparel reported a net loss of $86.31 million on
$532.99 million of net sales for the year ended Dec. 31, 2010,
compared with net income of $1.11 million on $558.77 million of
net sales during the prior year.
The Company's balance sheet at March 31, 2011, showed
$333.95 million in total assets, $283.12 million in total
liabilities, and $50.83 million in total stockholders' equity.
The Wall Street Journal reports that Skadden, Arps, Slate, Meagher
& Flom has been advising the company on its recent restructuring
efforts alongside investment bank Rothschild Inc.
In April 2011, American Apparel said it raised $14.9 million in
rescue financing from a group of investors led by Canadian
financier Michael Serruya and private equity firm Delavaco Capital
Corp., allowing the casual clothing retailer to meet obligations
to its lenders for the time being.
Going Concern Doubt
Marcum LLP, in New York, in its audit report on American Apparel's
financial statements for the year ended Dec. 31, 2010, expressed
substantial doubt about the Company's ability to continue as a
going concern.
As of April 30, 2011, the Company had approximately $8,000,000 of
cash, approximately $8,900,000 of availability for additional
borrowings and $46,100,000 outstanding on the credit facility
under the BofA Credit Agreement and $1,400,000 of availability for
additional borrowings and $4,000,000 outstanding on the credit
facility under the Bank of Montreal Credit Agreement. As May 10,
2011, the Company had approximately $5,941,000 available for
borrowing under the BofA Credit Agreement and $1,481,000 available
under the Bank of Montreal Credit Agreement.
The Company incurred a loss from operations of $13,091,000 for the
three months ended March 31, 2011, compared to a loss from
operations of $21,556,000 for the three months ended March 31,
2010. The current operating plan indicates that losses from
operations may be incurred for all of fiscal 2011.
"If we are not able to timely, successfully or efficiently
implement the strategies that we are pursuing to improve our
operating performance and financial position, obtain alternative
sources of capital or otherwise meet our liquidity needs, we may
need to voluntarily seek protection under Chapter 11 of the U.S.
Bankruptcy Code," the Company said following its first quarter
results.
AMERICAN APPAREL: Dov Charney Discloses 43.0% Equity Stake
----------------------------------------------------------
In an amended Schedule 13D filing with the U.S. Securities and
Exchange Commission, Dov Charney disclosed that he beneficially
owns 45,700,866 shares of common stock of American Apparel, Inc.,
representing 43.0% of the shares outstanding based on the Company
having 106,328,776 shares of common stock outstanding as of
July 7, 2011. A full-text copy of the filing is available for
free at http://is.gd/CBFZUv
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 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.
American Apparel reported a net loss of $86.31 million on
$532.99 million of net sales for the year ended Dec. 31, 2010,
compared with net income of $1.11 million on $558.77 million of
net sales during the prior year.
The Company's balance sheet at March 31, 2011, showed
$333.95 million in total assets, $283.12 million in total
liabilities, and $50.83 million in total stockholders' equity.
The Wall Street Journal reports that Skadden, Arps, Slate, Meagher
& Flom has been advising the company on its recent restructuring
efforts alongside investment bank Rothschild Inc.
In April 2011, American Apparel said it raised $14.9 million in
rescue financing from a group of investors led by Canadian
financier Michael Serruya and private equity firm Delavaco Capital
Corp., allowing the casual clothing retailer to meet obligations
to its lenders for the time being.
Going Concern Doubt
Marcum LLP, in New York, in its audit report on American Apparel's
financial statements for the year ended Dec. 31, 2010, expressed
substantial doubt about the Company's ability to continue as a
going concern.
As of April 30, 2011, the Company had approximately $8,000,000 of
cash, approximately $8,900,000 of availability for additional
borrowings and $46,100,000 outstanding on the credit facility
under the BofA Credit Agreement and $1,400,000 of availability for
additional borrowings and $4,000,000 outstanding on the credit
facility under the Bank of Montreal Credit Agreement. As May 10,
2011, the Company had approximately $5,941,000 available for
borrowing under the BofA Credit Agreement and $1,481,000 available
under the Bank of Montreal Credit Agreement.
The Company incurred a loss from operations of $13,091,000 for the
three months ended March 31, 2011, compared to a loss from
operations of $21,556,000 for the three months ended March 31,
2010. The current operating plan indicates that losses from
operations may be incurred for all of fiscal 2011.
"If we are not able to timely, successfully or efficiently
implement the strategies that we are pursuing to improve our
operating performance and financial position, obtain alternative
sources of capital or otherwise meet our liquidity needs, we may
need to voluntarily seek protection under Chapter 11 of the U.S.
Bankruptcy Code," the Company said following its first quarter
results.
AMERICAN PACIFIC: Ch. 11 Trustee Taps Sullivan Hill as Counsel
--------------------------------------------------------------
Christopher R. Barclay, the Chapter 11 trustee in the case of
American Pacific Financial Corporation, asks the U.S. Bankruptcy
Court for the District of Nevada for permission to retain
Sullivan, Hill, Lewin, Rez & Engel as his general counsel.
Sullivan Hill will provide legal services to the trustee.
Sullivan Hill employs multiple attorneys possessing experience and
skill in bankruptcy and business litigation matters, including:
Hourly Rate
-----------
James P. Hill, Shareholder $475
Christine A. Roberts, Of Counsel $350
Elizabeth E. Stephens, Of Counsel $350
To the best of the trustee's knowledge, Sullivan Hill is a
"disinterested person" as that term is defined in Section 101(14)
of the Bankruptcy Code.
The trustee set a July 26 hearing on his request to retain
Sullivan Hill.
The firm can be reached at
SULLIVAN, HILL, LEWIN, REZ & ENGEL,
A Professional Law Corporation
James P. Hill, Esq.
Christine A. Roberts, Esq.
Elizabeth E. Stephens, Esq.
228 South Fourth Street, First Floor
Las Vegas, NV 89101
Tel: (702) 382-6440
Fax: (702) 384-9102
About American Pacific Financial
Las Vegas, Nevada-based American Pacific Financial Corporation has
been involved in private equity and sub-debt investment in various
types of companies since 1978. APFC's assets include loans and
investments in distressed real estate development projects and in
other types of distressed operating companies throughout various
industries. The Company filed for Chapter 11 bankruptcy
protection (Bankr. D. Nev. Case No. 10-27855) on Sept. 21, 2010.
Kaaran Thomas, Esq., and Ryan J. Works, Esq., at McDonald Carano
Wilson, LLP, in Las Vegas, Nevada, represent the Debtor. The
Company disclosed $16,597,647 in assets and $160,977,435 in
liabilities as of the Chapter 11 filing.
AMERICANWEST BANCORP: Wants Plan Voting Postponed for 60 Days
-------------------------------------------------------------
AmericanWest Bancorporation asks the U.S. Bankruptcy Court for the
Eastern District of Washington to postpone the ballot deadline for
voting on the Chapter 11 Plan and the related scheduled dates
including the confirmation hearing date by 60 days.
The Debtor relates that there has been some delay in getting the
ballots to the correct trustees for the Trust Preferred Securities
claimants and additional time would permit the Debtor and the
creditors committee to insure that each of the holders entitled to
vote have received ballots and had ample opportunity to vote on
the Plan.
On June 30, 2011, Dillon Jackson, counsel for Debtor, said that he
will have to confer with the Court for new deadlines and a
confirmation hearing date and will prepare the submit an order
accordingly.
About AmericanWest Bancorporation
Headquartered in Spokane, Washington, AmericanWest Bancorporation
(OTC BB: AWBC) -- http://www.awbank.net/-- is a bank holding
company whose principal subsidiary is AmericanWest Bank, which
includes Far West Bank in Utah operating as an integrated division
of AmericanWest Bank. AmericanWest Bank is a community bank with
58 financial centers located in Washington, Northern Idaho and
Utah.
AmericanWest Bancorporation filed for Chapter 11 protection
(Bankr. E.D. Wash. Case No. 10-06097) on Oct. 28, 2010. The
banking subsidiary was not including in the Chapter 11 filing.
Christopher M. Alston, Esq., and Dillon E. Jackson, Esq., at
Foster Pepper Shefelman PLLC, in Seattle, Washington, serve as
bankruptcy counsel. G. Larry Engel, Esq., at Morrison & Foerster
LLP, also serve as counsel.
The Debtor estimated assets of $1 million to $10 million and debts
of $10 million to $50 million in its Chapter 11 petition.
AmericanWest Bancorporation's estimates exclude its banking unit's
assets and debts. In its Form 10-Q filed with the Securities and
Exchange Commission before the Petition Date, AmericanWest
Bancorporation reported consolidated assets -- including its bank
unit's -- of $1.536 billion and consolidated debts of
$1.538 billion as of Sept. 30, 2010.
In December 2010, AmericanWest Bancorporation completed the sale
of all outstanding shares of its wholly-owned subsidiary,
AmericanWest Bank, to a wholly owned subsidiary of SKBHC Holdings
LLC, in a transaction approved by the U.S. Bankruptcy Court.
ARCHBROOK LAGUNA: Philips Seeks Return of $230,000 in Products
--------------------------------------------------------------
Dow Jones' DBR Small Cap reports that an affiliate of electronics
giant Philips made demands for ArchBrook Laguna LLC to return
nearly $230,000 in ready-to-sell consumer products that the New
Jersey distributor had received in the weeks leading up to its
bankruptcy.
About ArchBrook Laguna
ArchBrook is a procurement and distribution intermediary between
production companies and end retailers. It distributes consumer
electronics, computers and appliances to principal customers that
include Wal-Mart Stores Inc., Best Buy Co. and Costco Wholesale
Corp.
ArchBrook disclosed assets of $246.2 million against debt
totaling $176.4 million as of March 31, 2011.
ArchBrook Laguna Holdings LLC and certain of its affiliates filed
voluntary petitions for reorganization under chapter 11 of the
U.S. Bankruptcy Code (Bankr. S.D.N.Y. Lead Case No. 11-13292) on
July 8, 2011.
The Company is being advised by Macquarie Capital (USA) Inc. with
respect to the sale process and by Hawkwood Consulting LLC, whose
founder Stephen J. Gawrylewski is Chief Restructuring Officer of
the Company. Macquarie Capital (USA) Inc. is the financial
advisor. PricewaterhouseCoopers LLP is a consultant.
The Debtors filed together with the petitions a motion seeking
authority to sell substantially all of their assets pursuant to a
bankruptcy auction. The Company will seek to have the bankruptcy
auction held on Aug. 8, 2011. No buyer is under contract to start
the auction.
ARTECITY PARK: Failed to Sale Terms Under DIP Loan, Says Corus
--------------------------------------------------------------
Corus Construction Venture LLC, the prepetition secured lender and
DIP lender to Artecity Park LLC and its affiliates, asks the
Bankruptcy Court to enter an order determining that the Debtors
have defaulted under the DIP Loan.
Corus claims that the Debtors failed to obtain any certificate of
occupancy for the Artecity condominium project, within six months
of the initial funding, or by April 9, 2011. The Debtors also
failed to secure at least 35 sale agreements for the condominium
units for units at the Project, by the agreed six-month deadline,
on or before April 9, 2011. Further, the Debtors are in default
under the DIP Loan by entering into unit sales agreements with
"phantom" earnest money deposits.
Corus states that these defaults are significant material
defaults, and the DIP Loan Order makes clear that "there shall be
no cure period" for such Events of Default.
Corus notes that the Debtors' inability to achieve their sales
goals reflects the continuing challenges in the condominium market
in South Florida. It adds that if the Debtors have been unable to
achieve even these initial sales goals, after more than six months
of sales efforts, it is extremely unlikely that the Debtors will
be able to sell enough condominium units to realize any increase
in value for the Project.
Corus also tells the Court that it has not been re-paid any of the
DIP Loans, has not received any interest payment under the DIP
Loan, and has not received a single adequate protection payment.
The Debtors have failed to attract any buyers or close on the sale
of any of the remaining units at the Governor building, which have
been completed for more than two years. This sales history
suggests that the Debtors' sales projections and expected sales
prices are unrealistically optimistic, and the value of the
Governor units must be reduced significantly.
Finally, Corus says that when faced with the impending April 9
deadline for achieving 35 sales contracts, the Debtors engaged in
a scheme to discount sales or enter into questionable sale
agreements will significantly reduce the long-term value of the
Project, which is the Debtor's sole asset.
Corus is owed $2.7 million for the DIP financing. It is owed
$45.2 million for a prepetition mortgage.
Corus Construction Venture LLC is being represented by:
Patricia A. Redmond, Esq.
STEARNS WEAVER MILLER WEISSLER ALHADEFF & SITTERSON, P.A.
150 West Flagler Street, Suite 2200
Miami, Florida 33130
Tel: (305) 789-3200
Fax: (305) 789-3395
E-mail: predmond@stearnsweaver.com
About Artecity Park LLC
Miami Beach, Florida-based Artecity Park LLC filed for Chapter 11
bankruptcy protection (Bankr. S.D. Fla. Case No. 10-31410) on
July 26, 2010. Thomas R. Lehman, Esq., at Levine Kellogg Lehman
Schneider & Grossman LLP, in Miami, Fla., represents the Debtors
as counsel. The Company estimated assets at $50 million to
$100 million and debts at $10 million to $50 million.
Affiliates Artecity Management IXC (Case No. 10-41406), Artecity
Holding Ltd. (Case No. 10-31407), Artepark South Development LLC
(Case No. 10-31412, BKC-AJC), Artecity Plaza LLC (Case No.
10-31411), Artecity Governor LLC (Case No. 10-31409), and Park
Villas Development LLC (Case No. 10-31413) filed separate
Chapter 11 petitions. The cases are jointly administered under
Artecity Management, LLC.
The Debtors are engaged in the development of a real estate
condominium project in Miami Beach, Florida, known as the
Artecity. The Project includes 202 condominium units in five
multi-level buildings, together with retail spaces, two pools, a
fitness and spa facility, and a parking garage.
Artecity Management manages the Debtors' operations and is the
general partner of Artecity Holding, Ltd. Artecity Holding owns
100% of the membership interests in Artecity Park LLC, Artecity
Plaza LLC, Artecity Governor LLC, Artepark South Development LLC,
and Park Villas Development LLC.
AVION POINT: Voluntary Chapter 11 Case Summary
----------------------------------------------
Debtor: Avion Point West LLC
1320 Northridge Dr
Longwood, FL 32750
Bankruptcy Case No.: 11-10364
Chapter 11 Petition Date: July 8, 2011
Court: United States Bankruptcy Court
Middle District of Florida (Orlando)
Debtor's Counsel: Frank M Wolff, Esq.
WOLFF HILL MCFARLIN & HERRON PA
1851 West Colonial Drive
Orlando, FL 32804
Tel: (407) 648-0058
Fax: (407) 648-0681
E-mail: fwolff@whmh.com
Estimated Assets: $10,000,001 to $50,000,000
Estimated Debts: $1,000,001 to $10,000,000
The petition was signed by James PA Thompson, managing member.
The Debtor did not file a list of its largest unsecured creditors
together with its petition.
Affiliate that filed separate Chapter 11 petition:
Petition
Debtor Case No. Date
------ -------- ----
Orlando Country Aviation Services Inc 11-10365 07/08/11
BARNES BAY: Fights IMI Resort's $6.8 Million Commission Bill
------------------------------------------------------------
Lisa Uhlman at Bankruptcy Law360 reports that Barnes Bay
Development Ltd. on Friday fought a real estate company's claim in
the U.S. Bankruptcy Court for the District of Delaware over $6.8
million in commissions allegedly owed on units sold in the
developer's Caribbean resort, saying the claim is deficient and
based on a terminated contract.
Law360 relates that IMI Resort Sales LLC and several affiliates
filed the proof of claim May 16, alleging Barnes Bay never paid
real estate commissions earned in connection with the sale of 76
villas, condominiums and other residences at the Viceroy Anguilla
resort.
About Barnes Bay
Beverly Hills, California-based Barnes Bay Development Ltd., owns
the Viceroy Anguilla Resort & Residences on the British West
Indies island of Anguilla. Barnes Bay and two affiliates filed
for Chapter 11 bankruptcy protection (Bankr. D. Del. Lead Case No.
11-10792) on March 17, 2011, to facilitate the sale of the resort.
Barnes Bay disclosed $3,331,282 in assets and $481,840,435 in
liabilities as of the Chapter 11 filing.
Akin Gump Straus Hauer & Feld LLP is the Debtors' bankruptcy
counsel, and Keithley Lake & Associates is the Debtors' special
Anguillan counsel. Kurtzman Carson Consultants LLC is the
Debtors' claims, noticing, solicitation and balloting agent.
The U.S. Trustee appointed five members to the official committee
of unsecured creditors in the Debtors' cases. Brown Rudnick LLP
serves as the Committee's co-counsel, and Womble Carlyle Sandridge
& Rice, PLLC, as its Delaware co-counsel. C.R. Hodge & Associates
is the Committee's foreign counsel. FTI Consulting, Inc.,
serves as the Committee's financial advisors.
BEAR ISLAND: Has Until Aug. 24 to Propose Chapter 11 Plan
---------------------------------------------------------
Chief Judge Doughlas O. Tice, Jr. of the U.S. Bankruptcy Court for
the Eastern District of Virginia extended Bear Island Paper
Company LLC's exclusive period to file and solicit acceptances of
the proposed Chapter 11 plan until Aug. 24, 2011, and Oct. 24,
respectively.
About Bear Island
Canada-based White Birch Paper Company is the second-largest
newsprint producer in North America. As of Dec. 31, 2009, the
White Birch Group held a 12% share of the North American newsprint
market and employed roughly 1,300 individuals (the majority of
which reside in Canada). Bear Island Paper Company, L.L.C., is a
U.S.-based unit of White Birch.
Bear Island filed a voluntary petition for relief under Chapter 11
of the Bankruptcy Code (Bankr. E.D. Va. Case No. 10-31202) on
February 24, 2010. Bear Island estimated assets of $100 million
to $500 million and debts of $500 million to $1 billion in its
Chapter 11 petition.
White Birch filed for bankruptcy protection under Canada's
Companies' Creditors Arrangement Act, before the Superior Court
for the Province of Quebec, Commercial Division, Judicial District
of Montreal, Canada. White Birch and five other affiliates --
F.F. Soucy Limited Partnership; F.F. Soucy, Inc. & Partners,
Limited Partnership; Papier Masson Ltee; Stadacona Limited
Partnership; and Stadacona General Partner, Inc. -- also sought
bankruptcy protection under Chapter 15 of the U.S. Bankruptcy Code
(Bankr. E.D. Va. Case No. 10-31234).
Jonathan L. Hauser, Esq., at Troutman Sanders LLP, in Virginia
Beach, Virginia; and Richard M. Cieri, Esq., Christopher J.
Marcus, Esq., and Michael A. Cohen, Esq., at Kirkland & Ellis LLP,
in New York, serve as counsel to White Birch, as Foreign
Representative. Kirkland & Ellis and Troutman Sanders also serve
as Chapter 11 counsel to Bear Island. AlixPartners LLP serves as
financial and restructuring advisors to Bear Island, and Lazard
Freres & Co., serves as investment banker. Garden City Group is
the claims and notice agent. Jason William Harbour, Esq., at
Hunton & Williams LLP, in Richmond, Virginia, represents the
Official Committee of Unsecured Creditors. Chief Judge Douglas O.
Tice, Jr., handles the Chapter 11 and Chapter 15 cases.
BEARINGPOINT INC: Trustee Moving $1.9-Bil. Suit to Va. State Court
------------------------------------------------------------------
Roxanne Palmer at Bankruptcy Law360 reports that the New York
bankruptcy judge overseeing the Chapter 11 proceedings for
BearingPoint Inc. said on Monday that the Company's liquidating
trustee can bring a $1.9 billion suit against BearingPoint's
former CEO and eight directors in Virginia state court.
Law360 relates that Trustee John DeGroote is accusing the former
BearingPoint executives of hindering the sale of the company and
costing it more than $1 billion.
About BearinPoint Inc.
BearingPoint, Inc. -- http://www.BearingPoint.com/-- was one of
the world's largest providers of management and technology
consulting services to Global 2000 companies and government
organizations in more than 60 countries worldwide.
BearingPoint, Inc., fka KPMG Consulting, Inc., together with its
units, filed for Chapter 11 protection (Bankr. S.D.N.Y., Case No.
09-10691) on Feb. 18, 2009. BearingPoint disclosed total assets
of $1.655 billion and debts of $2.201 billion as of Dec. 31, 2008.
The Debtors' legal advisor was Weil, Gotshal & Manges, LLP. Their
restructuring advisor was AlixPartners LLP, and their financial
advisor and investment banker was Greenhill & Co., LLC. Jeffrey
S. Sabin, Esq., at Bingham McCutchen LLP represented the
Creditors' Committee. Garden City Group served as claims and
notice agent.
On the petition date, BearingPoint filed a Chapter 11 plan of
reorganization negotiated with lenders prepetition. BearingPoint,
however, changed course and pursued a sale of its units, after
determining that creditor recoveries would be maximized through
sales of the businesses.
On Dec. 22, 2009, the Bankruptcy Court entered an order
confirming the Debtors' Modified Second Amended Joint Plan. On
Dec. 31, 2009, a Notice of Effective Date of the Plan was filed
with the Bankruptcy Court. John DeGroote was appointed as
liquidating trustee under the Plan. The liquidating trustee is
represented by Katherine Dobson, Esq., at Bingham McCutchen, in
Hartford, Connecticut. The trustee also has retained McKool Smith
P.C. and Whiteford, Taylor & Preston L.L.P. to pursue claims
against former company officers.
Attorneys for John DeGroote can be reached at:
BINGHAM McCUTCHEN LLP
Jeffrey S. Sabin, Esq.
399 Park Avenue
New York, NY 10022
Telephone: (212) 705-7000
Facsimile: (212) 702-3668
E-mail: jeffrey.sabin@bingham.com
Sabin Willett, Esq.
One Federal Street
Boston, MA 02110
Telephone: (617) 951-8000
Facsimile: (617) 345 - 5033
E-mail: sabin.willett@bingham.com
- and -
MCKOOL SMITH P.C.
Peter S. Goodman, Esq.
One Bryant Park, 47th Floor
New York, NY 10036
Telephone: (212) 402-9400
Facsimile: (212) 402-9444
E-mail: pgoodman@mckoolsmith.com
Lew LeClair, Esq.
Robert Manley, Esq.
300 Crescent Court, Suite 1500
Dallas, TX 75201
Telephone: (214) 978-4000
Facsimile: (214) 978-4044
E-mail: lleclair@mckoolsmith.com
rmanley@mckoolsmith.com
Basil A. Umari
600 Travis, Suite 7000
Houston, TX 77002
Telephone: (713) 485-7300
Facsimile: (713) 485-7344
E-mail: bumari@mckoolsmith.com
BERNARD L MADOFF: SIPC Opposes Mets Bid to Dodge $1-Billion Suit
----------------------------------------------------------------
Lisa Uhlman at Bankruptcy Law360 reports that the Securities
Investor Protection Corp. on Monday fought a bid by the New York
Mets' owners to dodge a lawsuit seeking to claw back $1 billion
lost in Bernard Madoff's Ponzi scheme, saying the trustee
overseeing the case was entitled to bring the suit.
As reported in the Troubled Company Reporter on July 11, 2011,
Fred Wilpon and Sterling Equities Inc., along with related
entities, are asking U.S. District Judge Jed Rakoff to dismiss the
$1 billion lawsuit filed by the trustee for Bernard L. Madoff
Investment Securities Inc. against them.
Bill Rochelle, the bankruptcy columnist for Bloomberg News,
reported that in the lawsuit, the Madoff trustee is looking to
recover $300 million in what he calls fictitious profits received
by the Wilpon Group from Mr. Madoff plus $700 million in principal
taken out in years before fraud was uncovered.
According to the Mr. Rochelle's report, the Wilpon group, owners
of the New York Mets baseball club, contends that brokerage
customers have "special protection under federal and state
securities laws" immunizing them from allegations they received
fraudulent transfers when the broker was conducting a fraud. They
add that there can be no fraud from the perspective of a customer
because all payments "discharge the broker's legal obligations to
its customers."
Oral arguments before Judge Rakoff are scheduled for Aug. 19. The
Madoff trustee is required to submit his opposition papers to the
dismissal motion by July 22. The Wilpon group can submit another
filing on Aug. 12.
About Bernard L. Madoff
Bernard L. Madoff Investment Securities LLC and Bernard L. Madoff
orchestrated the largest Ponzi scheme in history, with losses
topping $50 billion. On Dec. 15, 2008, the Honorable Louis A.
Stanton of the U.S. District Court for the Southern District of
New York granted the application of the Securities Investor
Protection Corporation for a decree adjudicating that the
customers of BLMIS are in need of the protection afforded by the
Securities Investor Protection Act of 1970. The District Court's
Protective Order (i) appointed Irving H. Picard, Esq., as trustee
for the liquidation of BLMIS, (ii) appointed Baker & Hostetler LLP
as his counsel, and (iii) removed the SIPA Liquidation proceeding
to the Bankruptcy Court (Bankr. S.D.N.Y. Adv. Pro. No. 08-01789)
(Lifland, J.). Mr. Picard has retained AlixPartners LLP as claims
agent.
On April 13, 2009, former BLMIS clients filed an involuntary
Chapter 7 bankruptcy petition against Bernard Madoff (Bankr.
S.D.N.Y. 09-11893). The case is before Hon. Burton Lifland. The
petitioning creditors -- Blumenthal & Associates Florida General
Partnership, Martin Rappaport Charitable Remainder Unitrust,
Martin Rappaport, Marc Cherno, and Steven Morganstern -- assert
US$64 million in claims against Mr. Madoff based on the balances
contained in the last statements they got from BLMIS.
On April 14, 2009, Grant Thornton UK LLP as receiver placed Madoff
Securities International Limited in London under bankruptcy
protection pursuant to Chapter 15 of the U.S. Bankruptcy Code
(Bankr. S.D. Fla. 09-16751).
The Chapter 15 case was later transferred to Manhattan. In June
2009, Judge Lifland approved the consolidation of the Madoff SIPA
proceedings and the bankruptcy case.
Judge Denny Chin of the U.S. District Court for the Southern
District of New York on June 29, 2009, sentenced Mr. Madoff to
150 years of life imprisonment for defrauding investors in United
States v. Madoff, No. 09-CR-213 (S.D.N.Y.)
As of Feb. 18, 2011, a total of $6.85 billion in claims by
investors has been allowed, with $791.1 million to be paid by the
Securities Investor Protection Corp. Investors are expected to
receive additional distributions from money recovered by Mr.
Picard from lawsuits or settlements.
BERNARD L MADOFF: Judge OKs $272-Mil. 1st Payment to Victims
------------------------------------------------------------
Christie Smythe at Bankruptcy Law360 reports that Judge Burton R.
Lifland on Tuesday approved the first distributions to victims of
Bernard Madoff's Ponzi scheme, allowing for $272 million in
initial payments to customers deemed to have been net losers in
the $65 billion fraud.
According to Law360, Judge Lifland granted recovery trustee Irving
Picard's request for the distributions during a hearing in New
York bankruptcy court, providing for claimants to receive an
average of $222,551 each.
About Bernard L. Madoff
Bernard L. Madoff Investment Securities LLC and Bernard L. Madoff
orchestrated the largest Ponzi scheme in history, with losses
topping $50 billion. On Dec. 15, 2008, the Honorable Louis A.
Stanton of the U.S. District Court for the Southern District of
New York granted the application of the Securities Investor
Protection Corporation for a decree adjudicating that the
customers of BLMIS are in need of the protection afforded by the
Securities Investor Protection Act of 1970. The District Court's
Protective Order (i) appointed Irving H. Picard, Esq., as trustee
for the liquidation of BLMIS, (ii) appointed Baker & Hostetler LLP
as his counsel, and (iii) removed the SIPA Liquidation proceeding
to the Bankruptcy Court (Bankr. S.D.N.Y. Adv. Pro. No. 08-01789)
(Lifland, J.). Mr. Picard has retained AlixPartners LLP as claims
agent.
On April 13, 2009, former BLMIS clients filed an involuntary
Chapter 7 bankruptcy petition against Bernard Madoff (Bankr.
S.D.N.Y. 09-11893). The case is before Hon. Burton Lifland. The
petitioning creditors -- Blumenthal & Associates Florida General
Partnership, Martin Rappaport Charitable Remainder Unitrust,
Martin Rappaport, Marc Cherno, and Steven Morganstern -- assert
US$64 million in claims against Mr. Madoff based on the balances
contained in the last statements they got from BLMIS.
On April 14, 2009, Grant Thornton UK LLP as receiver placed Madoff
Securities International Limited in London under bankruptcy
protection pursuant to Chapter 15 of the U.S. Bankruptcy Code
(Bankr. S.D. Fla. 09-16751).
The Chapter 15 case was later transferred to Manhattan. In June
2009, Judge Lifland approved the consolidation of the Madoff SIPA
proceedings and the bankruptcy case.
Judge Denny Chin of the U.S. District Court for the Southern
District of New York on June 29, 2009, sentenced Mr. Madoff to
150 years of life imprisonment for defrauding investors in United
States v. Madoff, No. 09-CR-213 (S.D.N.Y.)
As of Feb. 18, 2011, a total of $6.85 billion in claims by
investors has been allowed, with $791.1 million to be paid by the
Securities Investor Protection Corp. Investors are expected to
receive additional distributions from money recovered by Mr.
Picard from lawsuits or settlements.
BORDERS GROUP: Liquidation Seen as Nafaji Deal Collapses
--------------------------------------------------------
The Wall Street Journal's Mike Spector and Jeffrey A. Trachtenberg
report that people familiar with the matter said Borders Group
Inc. already has designated a group of liquidators as the opening
bidders in a looming bankruptcy-court auction. This after its
stalking horse deal with Jahm Najafi fell through Wednesday.
The report says no other suitors have so far emerged for Borders
ahead of a Sunday bidding deadline.
According to the Journal, Borders's deal with Mr. Najafi unraveled
Wednesday after publishers and landlords owed money from the
company complained that his bid would allow him to liquidate the
bookstore chain after buying the business. Mr. Najafi had offered
$215 million for Borders, plus an assumption of $220 million in
liabilities. The terms allowed him to operate the chain as a
going concern or to liquidate the business.
A creditors committee said an offer of at least $252 million from
a group of liquidators made for a better deal.
People familiar with the matter told the Journal Mr. Najafi was
willing to drop his liquidation option if publishers agreed to
grant him normal trade terms.
Some major publishers agreed, but by late Wednesday afternoon a
couple hadn't, the people told the Journal. At that point, Mr.
Najafi signaled he wouldn't alter his terms.
The auction is set for Tuesday.
According to the Journal, the recent development raises the
prospect that Borders will soon close all its remaining 399 stores
and go out of business.
About Borders Group
Borders Group operates book, music and movie superstores and mall-
based bookstores. At Jan. 29, 2011, the Debtors operated 642
stores, under the Borders, Waldenbooks, Borders Express and
Borders Outlet names, as well as Borders-branded airport stores in
the United States, of which 639 stores are located in the United
States and 3 in Puerto Rico. In addition, the Debtors operate a
proprietary e-commerce Web site, http://www.Borders.com/,
launched in May 2008, which includes both in-store and online
e-commerce components. As of Feb. 11, 2011, Borders employed a
total of 6,100 full-time employees, 11,400 part-time employees,
and approximately 600 contingent employees.
Borders Group Inc. and its affiliates filed for Chapter 11
protection (Bankr. S.D.N.Y. Case No. Lead Case No. 11-10614) in
Manhattan on Feb. 16, 2011.
David M. Friedman, Esq., David S. Rosner, Esq., Andrew K. Glenn,
Esq., and Jeffrey R. Gleit, Esq., at Kasowitz, Benson, Torres &
Friedman LLP, in New York, serve as counsel to the Debtors.
Jefferies & Company's Inc. is the financial advisor. DJM Property
Management is the lease and real estate services provider. AP
Services LLC is the interim management and restructuring services
provider. The Garden City Group, Inc., is the claims and notice
agent.
Attorneys at Morgan, Lewis & Bockius LLP, and Riemer & Braunstein
LLP, serve as counsel to the DIP Agents.
Lowenstein Sandler represents the official unsecured creditors
committee for Borders Group. Bruce S. Nathan and Bruce Buechler,
members of Lowenstein Sandlers' Bankruptcy, Financial
Reorganization & Creditors' Rights Group, are leading the team.
The Debtor disclosed $1.28 billion in assets and $1.29 billion in
liabilities as of Dec. 25, 2010
Borders Group has sought approval to sell merchandise and owned
furniture, fixtures and equipment located at approximately 200 of
their stores and, at Borders' option, up to 75 of 136 potential
other stores, through store closing sales.
Bankruptcy Creditors' Service, Inc., publishes BORDERS GROUP
BANKRUPTCY NEWS. The newsletter tracks the Chapter 11 proceeding
undertaken by Borders Group Inc., the United States' second
largest bookstore chain. (http://bankrupt.com/newsstand/or
215/945-7000)
BUCYRUS INTERNATIONAL: S&P Raises Corp. Credit Rating From 'BB+'
----------------------------------------------------------------
Standard & Poor's Rating Services raised its corporate credit
rating on Milwaukee, Wis.-based mining equipment manufacturer
Bucyrus International Inc. to 'A' from 'BB+', following its
acquisition by Caterpillar Inc., and removed the rating from
CreditWatch, where it was placed with positive implications on
Nov. 15, 2010, after Caterpillar announced its plan to acquire
Bucyrus. "Following this rating action, we are withdrawing our
corporate credit and issue-level ratings on Bucyrus. The rating
action follows the completion of Caterpillar's acquisition valued
at approximately $8.8 billion (including net debt)," S&P said.
CC MEDIA: FMR LLC Owns 9.14% of Class A Common Stock
----------------------------------------------------
In an amended Schedule 13G filing with the U.S. Securities and
Exchange Commission FMR LLC and Edward C. Johnson 3d disclosed
that they beneficially own 2,159,142 shares of Class A common
stock of CC Media Holdings, Inc., representing 9.140% of the
shares outstanding. A full-text copy of the filing is available
for free at http://is.gd/mPKSCw
About CC Media and Clear Channel
San Antonio, Tex.-based CC Media Holdings, Inc. (OTC BB: CCMO)
-- http://www.ccmediaholdings.com/-- is the parent company of
Clear Channel Communications, Inc. CC Media Holdings is a global
media and entertainment company specializing in mobile and on-
demand entertainment and information services for local
communities and premier opportunities for advertisers. The
Company's businesses include radio and outdoor displays.
CC Media has three reportable business segments: Radio
Broadcasting; Americas Outdoor Advertising; and International
Outdoor Advertising. Approximately half of CC Media's revenue is
generated from its Radio Broadcasting segment.
The Company reported a net loss of $462.8 million on
$5.866 billion of revenue for the fiscal year ended Dec. 31, 2010,
compared with a net loss of $4.049 billion on $5.552 billion of
revenue for the fiscal year ended Dec. 31, 2009.
The Company's balance sheet at March 31, 2011, showed $16.94
billion in total assets, $24.22 billion in total liabilities and a
$7.28 billion total shareholders' deficit.
* * *
CC Media Holdings carries 'CCC+' issuer credit ratings from
Standard & Poor's. Clear Channel Carries a 'Caa2' corporate
family rating from Moody's Investors Service and an issuer default
rating of 'CCC' from Fitch Ratings.
Fitch said in November 2010, that its ratings concerns center on
the company's highly leveraged capital structure, with significant
maturities in 2014 and 2016; the considerable interest burden that
pressures free cash flow generation; technological threats and
secular pressures in radio broadcasting; and the company's
exposure to cyclical advertising revenue. The ratings are
supported by the company's leading position in both the outdoor
and radio industries, as well as the positive fundamentals and
digital opportunities in the outdoor advertising space.
In February 2011, Standard & Poor's affirmed it 'CCC+' corporate
credit rating and positive outlook on CC Media Holdings and
operating subsidiary Clear Channel, which S&P views on a
consolidated basis.
S&P said the 'CCC+' corporate credit rating on CC Media Holdings
Inc. reflects the risks surrounding the longer-term viability of
the company's capital structure--in particular, refinancing risk
relating to sizable secured debt maturities in 2014 ($3.2 billion
pro forma for the transaction) and 2016 ($10.4 billion). In S&P's
view, the company has a satisfactory business risk profile, due to
its position as the largest radio and global outdoor advertising
operator, its good geographic and market diversity, and moderate
long-term growth prospects at the outdoor business. S&P views the
financial risk profile as highly leveraged, given the company's
significant refinancing risk, roughly break-even EBITDA coverage
of interest expense, and slim discretionary cash flow.
CDC PROPERTIES: Court Modifies Prior Cash Collateral Order
----------------------------------------------------------
CDC Properties I, LLC, has obtained approval from the U.S.
Bankruptcy Court for the Western District of Washington to modify
a prior order granting it access to cash collateral.
Judge Paul B. Snyder orders that the original agreed cash
collateral order will be deemed modified as follows:
1. On or before the fifth day of every month, Midland shall
remit to the Debtor cash, to the extent available,
sufficient to pay the balance of the items set forth in
the Budget, and the Debtor is authorized to use such cash
for the purposes described in the Budget; provided,
however, Midland shall not be required to make any
payments to the Debtor unless and until deposits to the
Lockbox for any given month are sufficient to pay all of
the items described in this paragraph.
2. In addition to the payments to the Debtor, beginning at
such time as the A Note and B Note are brought current
without regard to post-petition fees and expenses,
Midland shall remit to the Debtor the full amount of any
excess rent proceeds remaining every month by check made
jointly payable to the Debtor and Green Johnny, LLC. The
Debtor shall use the TI Contribution Funds to satisfy its
obligation to pay for certain tenant improvements of a
portion of the Property located at 640 Woodland Square
Loop, Lacey, Washington, provided, however, Midland will
have no obligation to remit TI Contribution Funds unless
and until the five-year lease has been fully executed and
approved by Senior Lender. At such time as sufficient TI
Contribution Funds have been remitted to the Debtor to
discharge the Debtor's obligations to contribute to the
Building Tenant Improvements, Midland shall thereafter
remit to the Debtor the full amount of any excess rent
proceeds by wire transfer pursuant to the Debtor's
instructions.
3. The 640 Lease Amendment is approved.
4. Any proposed new lease or lease amendment affecting any of
the Properties that has been negotiated by the Debtor will
comply with the terms of the Senior Lender's Deed of
Trust. Each lease or lease amendment shall be presented
to Midland prior to the Debtor's execution and Midland
shall not unreasonably withhold or delay its approval of
such lease or lease amendment.
5. The Debtor and Midland agree that Anthony Apuzzo Jr. will
be made available to the Debtor for purposes of reviewing
and reconciling the Senior Lender Midland' s historical
accounts and current account status with the Debtor.
About CDC Properties I
Tacoma, Washington-based CDC Properties I, LLC, owns 10 commercial
buildings in Washington. Most of the space in its buildings is
leased to the State of Washington and occupied by various of its
agencies. CDC Properties filed for Chapter 11 bankruptcy
protection (Bankr. W.D. Wash. Case No. 11-41010) on Feb. 10, 2011.
Brad A. Goergen, Esq., Mark D. Northrup, Esq., at Graham & Dunn
PC, in Seattle, Wash., serve represent the Debtor. The Debtor
disclosed $47,304,590 in total assets, and $75,714,502 in total
liabilities as of the Chapter 11 filing.
CENTURION PROPERTIES: Files First Amended Plan of Reorganization
----------------------------------------------------------------
Centurion Properties III, LLC, filed with the U.S. Bankruptcy
Court for the Eastern District of Washington at Spokane, a first
amended plan of reorganization and an accompanying disclosure
statement on June 29, 2011.
The Plan is premised upon CPIII's ability to obtain replacement
financing for its secured debt obligations within a fixed period
of time. The Plan proposes to pay all Allowed Claims in full,
with interest, within 26 months of the Initial Distribution Date.
The Plan provides for these classification and treatment of
claims:
Class Description Treatment
----- ----------- ---------
1 None Unimpaired. Allowed Claim paid in
full within 30 days of the Plan
Confirmation Order.
Est. Amount: N/A
2 Benton County Unimpaired. Paid in full within 30
Treasurer days of entry of the Plan
Confirmation Order, plus statutory
interest and penalties.
Est. Amount: $221,850
3 General Electric Impaired. Allowed Claim paid in
Capital full within 24 months of the
Corporation Initial Distribution Date;
beginning on the Initial
Distribution Date, GECC will
receive monthly payments of
principal and interest amortized
over 20 years.
Est. Amount: $59,190,636.94
(disputed)
4 General Unsecured Impaired. Allowed Claims paid in
Claims full, with interest at 5% from the
Effective Date, within 26 months of
the Initial Distribution Date and
after all secured claims paid in
full.
Est. Amount: Less than $10,000
5 Umpqua Bank Allowed Claim paid in full, with
interest at 5% from the Effective
Date, within 24 months from the
Initial Distribution Date.
Est. Amount: Unknown
6 Centrum Financial Impaired. Allowed Claim paid in
Services full, with interest at 5% from the
Effective Date, within 24 months
from the Initial Distribution Date.
Est. Amount: $10,312,787
(disputed)
7 Equity Funding, LLC Impaired. Allowed Claim paid in
full, with interest at 5% from the
Effective Date, within 24 months
from the Initial Distribution Date.
Est. Amount: $5,313,602
(disputed)
8 Centurion Pacific, Impaired. Allowed Claim paid in
LLC full, with interest at 5% from the
Effective Date, within 60 days
after Class 4 Claims are paid in
full and only after Administrative
Claims and Classes 1-7 are paid in
full; distributions will be pro
rata with classes 9 and 10.
Est. Amount: $4,047,771
(disputed)
9 Centurion Southwest, Impaired. Allowed Claim paid in
LLC full, with interest at 5% from the
Effective Date, within 60 days
after Class 4 Claims are paid in
full and only after Administrative
Claims and Classes 1-7 are paid in
full; distributions will be pro
rata with classes 8 and 10.
Est. Amount: $12,980,918
(disputed)
10 Sigma Management, Impaired. Allowed Claim paid in
Inc. full, with interest at 5% from the
Effective Date, within 60 days
after Class 4 Claims are paid in
full and only after Administrative
Claims and Classes 1-7 are paid in
full; distributions will be pro
rata with classes 8 and 9.
Est. Amount: $257,133
11 CPIII's Membership Unimpaired.
Interests
Kelly: subject to offset and
Kelly: 10% forfeiture, the ownership is of
CM III: 63% record and will be retained,
SMI: 27% subject to offset, modification, or
determination by Court Order; no
distributions until classes 1-10
are paid in full, with interest
CM III: subject to offset and
forfeiture, the ownership is of
record and will be retained,
subject to offset, modification, or
determination by Court Order; no
distributions until classes 1-10
are paid in full, with interest
SMI: allowed; no distributions
until classes 1-10 are paid in
full, with interest
A full-text copy of the First Amended Disclosure Statement is
available for free at http://ResearchArchives.com/t/s?7676
About Centurion Properties
Kennewick, Washington-based Centurion Properties III, LLC, was
established in 2006 for the sole purpose of acquiring, owning,
operating and managing the real estate project known as the
Battelle Leaseholds located in Richland, Washington. Its sole
asset is its leasehold interests in the Battelle Memorial
Institute Campus and improvements, valued in excess of
$90 million.
CPIII filed for Chapter 11 bankruptcy protection (Bankr. E.D.
Wash. Case No. 10-04024) on July 9, 2010. John D. Munding, Esq.,
at Crumb & Munding, assists the Company in its restructuring
effort. The United States Trustee has been unable to appoint a
creditors committee in the case. The Company estimated its assets
and debts at $50 million to $100 million.
CERBERUS CAPITAL: Restructures $1.3-Bil. of Hotel Debt
------------------------------------------------------
Kris Hudson, writing for The Wall Street Journal, reports that
Cerberus Capital Management LP on Monday restructured more than
$1.3 billion of debt due that day on the Kyo-ya portfolio, which
consists of six huge resorts. A person familiar with the matter
told the Journal that Cerberus won a two-year reprieve on the
resorts' first mortgage during which those lenders agreed not to
declare a default of the loan. In turn, Cerberus paid $77 million
of the loan's principal, reducing its balance to $1.1 billion.
The Journal says most of the mortgage is securitized. The report
says a small piece of less than $50 million, called a B note, is
held by KSL Capital Partners LLC.
The source also told the Journal that Cerberus on Monday
refinanced the remaining $239 million of junior "mezzanine" debt
on the resorts with a new five-year loan. The identity of the new
lender couldn't be determined. Those who held the maturing
mezzanine debt include H2 Capital Partners on behalf of German
lender Hypo Real Estate Holding AG and J.E. Robert Cos.
According to the Journal, loan records show appraisals in May
pegged the resorts' value at $1.8 billion, far more than its debt.
Sources told the Journal that, with the July debt-payment deadline
looming, Cerberus earlier this year lined up Goldman Sachs Group
Inc. and Blackstone to refinance the debt. However, in early
March, Cerberus canceled that deal in favor of seeking better
terms elsewhere. Within days, the devastating earthquake and
tsunami struck Japan, hobbling Hawaii's main tourist market and
denting the value of Hawaiian resorts.
The Journal recounts that Blackstone Group LP this year also
revamped several of its hotel portfolios. In June, technology
executive Michael Dell's MSD Capital LP won a five-year extension
from the original 2014 due date of $425 million of mortgages on
the Four Seasons Resort Maui. To gain the reprieve, MSD paid
overdue charges, put $10 million into the loans' reserve accounts
and agreed to a $25 million guarantee against bankruptcy,
according to loan records released this week.
The Kyo-ya resort portfolio includes the 1,700-room Sheraton
Waikiki Hotel in Honolulu, the 550-room Palace Hotel in San
Francisco, the 530-room, pink-hued Royal Hawaiian hotel in
Honolulu, the Westin Moana Surfrider hotel, the Sheraton Maui
Resort and the Sheraton Princess Kaiulani Hotel.
The Journal reports that Cerberus obtained the Kyo-ya resorts in
its 2004 purchase of a majority interest in Japanese holding
company Kokusai Kogyo K.K. In 2006, Cerberus put roughly $1.8
billion of debt on the resorts.
Cerberus has assets under management of roughly $23 billion.
CITY OF CAMDEN: Moody's Reviews 'Ba2' Rating for Downgrade
----------------------------------------------------------
Moody's Investors Service has placed under review for possible
downgrade the Ba2 rating of the City of Camden's (NJ) $3 million
of outstanding general obligation bonds, the A2 rating of the City
of East Orange City's (NJ) $87 million of outstanding general
obligation bonds, the A1 rating of the City of Passaic's (NJ) $16
million of outstanding general obligation bonds, the Baa1 rating
of the City of Paterson's (NJ) $45 million of outstanding general
obligation bonds, the A3 rating of the City of Trenton's (NJ) $374
million of outstanding general obligation bonds and the A3 rating
of the City of Union's (NJ) $78 million outstanding general
obligation bonds. The review will focus on the potential financial
implications for these New Jersey cities of the loss of
Transitional Aid from the Fiscal 2012 state budget. The review
will also consider the possibility that state legislative actions
may restore all or some of this aid in the near-term. Moody's
expects to resolve the review within 90 days.
RATING RATIONALE
The Watchlist action is prompted by a reduction in State
Transitional Aid to $10 million from $149 million in the State of
New Jersey's fiscal 2012 adopted budget. The final budget was
adopted June 30, 2011. The $139 million aggregate cut represents a
decline in revenue for these cities, with the impact on each city
ranging between 2% and 38% of annual revenues. Moody's believes
all of the affected cities will have difficulty making up the
budget gap created by the cut. Negative rating pressure may result
due to each city's current financial position, limited revenue
raising flexibility under the state's 2% property tax cap, weak
tax bases, low wealth indicators and the still-sluggish New Jersey
economy.
During the review, Moody's will evaluate each city's plans to
offset the revenue reductions and progress toward gap-closing
measures. Given the magnitude of the adopted state aid reductions
and required process for implementing workforce reductions,
Moody's believes that city managers may be challenged to achieve
the necessary savings quickly to prevent further financial
decline. Moody's review will also consider the possible
restoration of Transitional Aid to each city.
The City of Trenton (G.O. rated A3), which received $27 million in
transitional aid during fiscal 2011 (year-end June 30), was
expecting $24 million to balance its fiscal 2012 budget. Aid of
$24 million would have represented an estimated 12% of projected
fiscal 2012 revenues. Trenton's Current Fund balance as of 2010 is
negative $9.9 million and net cash is a narrow $11 million. The
tax base is weak, with 21% of the population below the poverty
line. Approximately half of properties within the city are
nontaxable.
The City of Camden (G.O. rated Ba2) anticipated $69 million of
transitional aid to support its fiscal 2012 budget. Camden is the
largest recipient of the transitional aid, with the city
accounting for roughly half of the total state amount in fiscal
2011. Aid of $69 million would have made up an estimated 38% of
the city's projected fiscal 2012 revenues. The cut of $69 million
significantly exceeds the city's net cash of $9.9 million and
Current Fund balance of $1.4 million. Property taxes generate only
10% of total revenues, as 52% of properties within the city are
nontaxable.
The City of Paterson (G.O. rated Baa1) was anticipating $22
million in transitional aid for fiscal 2012, which would have
represented 7% of projected fiscal 2012 revenues. The cut of $22
million exceeds net cash of $6.4 million and a Current Fund
balance of negative $6.7 million. If absorbed by the property tax
levy, the cut would require a municipal levy increase of 12.3% on
the heels of a large increase of 29% in fiscal 2011.
The City of East Orange (G.O. rated A2) was anticipating $2.85
million in transitional aid for fiscal 2012, which would have
represented 2% of projected fiscal 2012 revenues, but amounts to 7
times the city's fiscal 2010 Current Fund balance of $411,000. The
city regularly issues Tax Anticipation Notes for cash flow
purposes. Additionally, property tax revenues are challenged by
ongoing tax appeals.
The City of Passaic (G.O. rated A1) received $1.45 million of
Transitional Aid in fiscal 2011, which would have represented 2%
of total projected fiscal 2012 revenues. A cut of 2% of the city's
revenues could materially reduce the city's Current Fund balance
of $3.8 million (fiscal 2010). Wealth indicators are weak, with a
poverty rate of 21%.
The City of Union (G.O. rated A3) was anticipating $13 million of
Transitional Aid for fiscal 2012, which would have represented 13%
of projected total revenues. The cut of $13 million exceeds net
cash of $9.3 million and a Current Fund balance of $2 million. If
absorbed by the property tax levy, the cut would require a
municipal levy increase of 26% on the heels of an increase of 10%
in fiscal 2011 to offset a $7.9 million aid cut that year.
The principal methodology used in this rating was General
Obligation Bonds Issued by U.S. Local Governments published in
October 2009. Please see the Credit Policy page on www.moodys.com
for a copy of this methodology.
CITY NATIONAL BANCSHARES: Barbara Bell Resigns from Board
---------------------------------------------------------
Barbara Bell Coleman resigned as a director of City National
Bancshares Corporation on June 30, 2011. Ms. Coleman had
indicated her desire to resign in the past. As a result even
though she indicated in writing on April 25 she was resigning
effective June 30, 2011, this was generally not considered firm
and was not final until she did in fact actually resign at the
June 30, 2011, Board meeting after indicating she felt comfortable
with the progress the company was making.
About City National Bancshares
Newark, N.J.-based City National Bancshares Corporation is a New
Jersey corporation incorporated on January 10, 1983. City
National Bank, a wholly-owned subsidiary of CNBC, is a national
banking association chartered in 1973 under the laws of the United
States of America and has one subsidiary, City National
Investments, Inc., an investment company which holds, maintains
and manages investment assets for CNB. CNB provides a wide range
of retail and commercial banking services through its retail
branch network, although the primary focus is on establishing
commercial and municipal relationships.
The Bank owns a 35.4% interest in a leasing company, along with
two other minority banks and has small investments in a Haitian
financial organization that provides microloan financing to
individuals in rural Haiti for business purposes and a mutual fund
which invests in targeted projects throughout the country that are
eligible for Community Reinvestment Act ("CRA") credit.
As reported by the TCR on June 1, 2011, KPMG LLP, in Short Hills,
New Jersey, expressed substantial doubt about City National
Bancshares' ability to continue as a going concern. The
independent auditors noted that the Company has suffered recurring
losses from operations and has entered into a consent order with
the Office of the Comptroller of the Currency.
The Company reported a net loss of $7.5 million on $12.8 million
of net interest income for 2010, compared with a net loss of
$7.8 million on $14.7 million of net interest income for 2009.
The Company's balance sheet at Dec. 31, 2010, showed
$387.3 million in total assets, $364.4 million in total
liabilities, and stockholders' equity of $22.9 million.
CLAIRE'S STORES: European Unit Head to Leave Post in November
-------------------------------------------------------------
Kenneth Wilson, the President of Claire's Europe, has informed the
Company of his decision to resign his position effective the end
of November 2011 to pursue another opportunity. The Company
intends to fill this position through an external recruitment
process.
About Claire's Stores
Claire's Stores, Inc. -- http://www.clairestores.com/-- is a
specialty retailer offering accessories and jewelry for kids,
teens, teens, and young women in the 3 to 27age range. The
Company is organized based on its geographic markets, which
include North American division and European division. As of Jan.
30, 2010, it operated a total of 2,948 stores, of which 1,993 were
located in all 50 states of the United States, Puerto Rico,
Canada, and the United States Virgin Islands (its North American
division) and 955 stores were located in the United Kingdom,
France, Switzerland, Spain, Ireland, Austria, Germany,
Netherlands, Portugal, and Belgium (its European division). Its
stores operate under the trade names Claire's and Icing. In
addition, as of Jan. 30, 2010, it franchised 195 stores in the
Middle East, Turkey, Russia, South Africa, Poland, Greece,
Guatemala and Malta under franchising agreements. It also
operates 211 stores in Japan through its Claire's Nippon 50:50
joint venture with AEON Co. Ltd.
Claire's Stores reported net income of $4.32 million on $1.42
billion of net sales for the fiscal year ended Jan. 29, 2011,
compared with a net loss of $10.40 million on $1.34 billion of net
sales for the fiscal year ended Jan. 30, 2010.
The Company's balance sheet at April 30, 2011, showed $2.86
billion in total assets, $2.63 billion in total liabilities and a
$26.70 million stockholders' deficit.
As reported by the Troubled Company Reporter on March 15, 2011,
Moody's upgraded Claire's Stores, Inc.'s senior secured bank
credit facilities to B3 from Caa1 and its Speculative Grade
Liquidity Rating to SGL-2 from SGL-3. All other ratings were
affirmed including Claire's Caa2 Corporate Family Rating. The
rating outlook is positive.
The upgrade of Claire's first lien bank facilities is in response
to the repayment of $245 million of the term loan B, which reduced
the amount of senior secured first lien bank debt in the capital
structure. The upgrade also reflects Claire's recently issued
$450 million second lien notes, which provide additional support
to the first lien bank facilities.
COMMERCIAL VEHICLE: FMR LLC Discloses 3.3% Equity Stake
-------------------------------------------------------
In an amended Schedule 13G filing with the U.S. Securities and
Exchange Commission, FMR LLC and Edward C. Johnson 3d disclosed
that they beneficially own 961,006 shares of common stock of
Commercial Vehicle Group Inc representing 3.339% of the shares
outstanding. As reported by the TCR on March 14, 2011, FMR LLC
and Edward C. Johnson disclosed that they beneficially own
2,456,978 shares of common stock of the Company representing
8.607% of the shares outstanding. A full-text copy of the filing
is available for free at http://is.gd/azs1Bp
About Commercial Vehicle Group
New Albany, Ohio-based Commercial Vehicle Group, Inc., (Nasdaq:
CVGI) supplies fully integrated system solutions for the global
commercial vehicle market, including the heavy-duty truck market,
the construction and agricultural markets, and the specialty and
military transportation markets. The Company has facilities
located in the United States in Arizona, Indiana, Illinois, Iowa,
North Carolina, Ohio, Oregon, Tennessee, Virginia and Washington
and outside of the United States in Australia, Belgium, China,
Czech Republic, Mexico, Ukraine and the United Kingdom.
The Company's balance sheet at March 31, 2011, showed
$306.60 million in total assets, $300.81 million in total
liabilities and $5.79 million in total stockholders' investment.
* * *
Commercial Vehicle carries a 'Caa2' Corporate Family Rating and
'Caa2/LD' Probability of Default Rating from Moody's. It has
'CCC+' issuer credit ratings from Standard & Poor's.
In mid-October 2010, Moody's Investors Service upgraded Commercial
Vehicle Group, Inc.'s Corporate Family Rating to Caa1 from Caa2,
and revised the ratings outlook to positive from negative. These
positive actions recognize the continuing improvement in the build
rates for commercial vehicles and the realized benefits of the
company's operating and capital restructurings. According to
Moody's, the Caa1 CFR reflects modest size, high debt leverage,
and exposure to highly cyclical commercial vehicle end markets.
Demand for commercial vehicle components is sensitive to both
economic cycles and regulatory implementation schedules.
As reported by the TCR on April 12, 2011, Standard & Poor's
Ratings Services said it raised its corporate credit rating on New
Albany, Ohio-based Commercial Vehicle Group Inc. (CVG) to 'B-'
from 'CCC+'. "The upgrade reflects our assumption that CVG can
improve EBITDA and cash flow in the next two years, because we
believe commercial truck production volumes will continue to rise
year-over-year in 2011 and 2012," said Standard & Poor's credit
analyst Nancy Messer. Heavy-duty truck production increased by a
meaningful 30% in 2010, leading to a 30% year-over-year sales
increase.
CONGRESS SAND: Has Agreement With Patriot on Value of Equipment
---------------------------------------------------------------
The U.S. Bankruptcy Court for the Northern District of Texas
approved an agreement on Patriot Bank's motion for valuation
related to the motion for relief from the automatic stay against
Congress Sand and Gravel, LLC and Congress Materials, LLC's
equipment.
Patriot Bank filed a motion for relief from the automatic stay as
to equipment, which secures the Debtors' obligations to Patriot
Bank.
Patriot related that it has never consented to the transfer, or
the use of its collateral by Congress or any of the Congress
related entities. Upon information and belief, Congress, or a
related entity, is using the Equipment in its business operations.
Patriot also asked that the Court allow Patriot to exercise its
legal rights and remedies under non-bankruptcy law against the
equipment, either judicially or non-judicially, including the
right to take possession of the equipment, voluntarily or through
any legal or equitable proceedings, to the exclusion of the
Debtors.
The terms of the agreement, includes, among other things:
-- The Debtors and Patriot Bank agreed that the equipment be
valued at $117,500.
-- The Debtors will make monthly payments beginning on the
fifth day of the month that is at least one full month after entry
of this order, with subsequent payments to be made on the fifth
day of each month thereafter, and such payments will be based on a
value of $117,500, calculated at 6% simple interest, and based
upon a six year amortization schedule.
-- If the Debtors fail to make a monthly payment within five
days of the date due, Patriot Bank will send a notice to: (a)
Congress Sand & Gravel, LLC, Debtor, (b) Congress Sand & Gravel,
LLC, Debtor, (c) Douglas S. Draper, Attorney at Law, Heller,
Draper, Hayden, Patrick & Horn, LLC; and (d) email a copy of the
notice to ddraper@hellerdraper.com, indicating such a default, and
after the expiration of 10 days from transmittal of such notice,
the automatic stay with respect to the retained equipment will
terminate if the default is not cured within that same time
period.
-- If the automatic stay terminate with respect to the retained
equipment, Patriot Bank will be permitted to seek any and all
remedies to take possession of the retained equipment.
-- Patriot Bank will be allowed to amend its proof of claim to
reflect an unsecured claim of $263,795.
-- The Debtors will keep the retained equipment fully insured
and taxes current.
-- On or before the Effective Date, the Debtors will execute a
promissory note and security agreement in favor of Patriot in the
amount of $117,500, which will be secured by the retained
equipment.
-- The Debtors will incorporate the provisions of the agreed
order into the order confirming the current Plan of Reorganization
or, if the current Plan of Reorganization is not confirmed, the
Debtors will incorporate the provisions of the agreed order into
any subsequently amended Plan.
Patriot Bank is represented by:
Steven A. Leyh, Esq.
9545 Katy Freeway, Suite 200
Houston, Texas 77024
Tel: (713) 785-0881
Fax: (713) 784-0338
About Congress Sand
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
Oct. 28, 2010. It estimated assets and debts at $10 million
to $50 million.
Kerens, Texas-based Congress Sand filed for Chapter 11 bankruptcy
protection (Bankr. N.D. Tex. Case No. 10-37522) on Oct. 28, 2010.
It estimated its assets and debts at $1 million to $10 million.
Congress Materials' bankruptcy case is jointly administered with
Congress Sand & Gravel, LLC. Congress Sand is the lead case.
Douglas S. Draper, Esq., at Heller Draper Hayden Patrick & Horn,
LLC, assists Congress Sand and Congress Materials in their
restructuring efforts.
Affiliate Green Aggregates, Inc. (Bankr. N.D. Tex. Case No. 07-
53439) filed a separate Chapter 11 petition on Dec. 31, 2007.
CONTINENTAL COMMON: Plan Outline Hearing Scheduled for July 19
--------------------------------------------------------------
Judge Harlin DeWayne Hale of the U.S. Bankruptcy Court for the
Northern District of Texas will convene a hearing on July 19,
2011, at 9:30 a.m., to consider adequacy of the information in the
disclosure statement explaining Continental Common, Inc.'s Plan of
Reorganization dated June 14, 2011. Objections, if any, are due
July 15, at 5:00 p.m.
According to the Disclosure Statement, the Plan proposed by the
Debtor and PNC Bank, N.A. provides that the Debtor will to
continue to manage and operate the three properties it owns:
i) an office building located at 1010 Common St. in New
Orleans, Louisiana and various ground leases and land
associated with the 1010 common property;
ii) approximately 43.433 acres of undeveloped land located at
4600, 5201, 5224, and 5325 Shadydell Circle in Fort Worth,
Texas; and
iii) approximately 17.115 acres of undeveloped land located at
11600 Luna Road, Farmers Branch, Texas.
Under the Plan, the Reorganized Debtor will use, among other
things (i) net cash flow; (ii) funds received from
Transcontinental Realty Investors, Inc.; (iii) funds on deposit in
the Debtor's various debtor-in-possession bank accounts,
including, but not limited to, the tax escrow account and the
$96,000 deposited by the Debtor into a special utility escrow
account for the benefit of Entergy New Orleans, Inc.; and any
additional monies obtained by the Debtor to fund the distributions
required under the Plan to Classes 1, 2, 3, 5, 6, 7, 8, and 9.
Transcontinental Realty Investors, Inc., or its designee is
acquiring the equity of the Debtor.
Entergy New Orleans, Inc., received a surety bond executed by TCI
as adequate assurance of payment and in the funds' stead.
Distributions to Class 4 Claims will be funded by, among other
things (i) gross revenue; (ii) funds received from TCI its
designee, or any other entity; and (iii) funds on deposit in the
Debtor's various debtor-in-possession bank accounts, including,
but not limited to, the tax escrow account and the $96,000
deposited by the Debtor into a special utility escrow account for
the benefit of Entergy New Orleans, Inc.
TCI has agreed to make payments to PNC to the extent provided in
the Plan Documents. TCI or its designee will receive 100% of the
equity interests in the Reorganized Debtor on account of its
contributions.
The perfected liens and security interests held by any lender,
including PNC, will be continued, preserved and retained to secure
the unpaid balance of such lender's allowed secured claims.
About Continental Common
Dallas, Texas-based Continental Common, Inc., has primary assets
consist of various real estate holdings in multiple states. The
Company filed for Chapter 11 bankruptcy protection (Bankr. N.D.
Tex. Case No. 10-37542) on Oct. 28, 2010. Melissa S. Hayward,
Esq., at Franklin Skierski Lovall Hayward LLP, represents the
Debtor. The Company disclosed $29,250,424 in assets and
$25,150,836 in liabilities. The U.S. Trustee has not appointed
creditors' committee or examiner in the case.
CONTINENTAL COMMON: PNC OKs Limited Use of Cash Collateral
----------------------------------------------------------
The U.S. Bankruptcy Court for the Northern District of Texas has
authorized Continental Common, Inc. to use the cash collateral of
PNC Bank N.A. pursuant to an agreed order submitted by the
parties.
The Debtor is authorized, on a limited basis, to use cash
collateral only in strict accordance with the terms and conditions
agreed with PNC.
PNC acknowledges that the relief is necessary to avoid immediate
and irreparable harm to the Debtor's estate because, without the
use of cash collateral, the Debtor will not have the funds
necessary to maintain its assets, sell or otherwise liquidate its
assets, provide financial information, pay necessary employees,
payroll taxes, overhead, and other expenses necessary to maximize
the value of the Debtor's assets.
Accordingly, the Debtor will immediately, and will continue to,
segregate, remit, and deposit all cash collateral in its accounts,
possession, custody or control and which it may receive in the
future, in the bank accounts held by the Debtor at Bank of
America.
As adequate protection of the Lender's interests, the Debtor will
make a monthly interest payment to PNC in the amount shown in the
Cash Collateral Budget for each month.
All funds transferred to PNC constitute cash collateral of PNC.
A copy of the cash collateral budget is available for free at:
http://bankrupt.com/misc/CONTINENTAL_Budget.pdf
About Continental Common
Dallas, Texas-based Continental Common, Inc., has primary assets
consist of various real estate holdings in multiple states. The
Company filed for Chapter 11 bankruptcy protection on October 28,
2010 (Bankr. N.D. Tex. Case No. 10-37542). Melissa S. Hayward,
Esq., at Franklin Skierski Lovall Hayward LLP, represents the
Debtor. The Company disclosed $29,250,424 in assets and
$25,150,836 in liabilities. The U.S. Trustee has not appointed
creditors' committee or examiner in the case.
CROATAN SURF: Mediator to Report on Settlement Conference July 18
-----------------------------------------------------------------
Judge Stephani W. Humrickhouse of the U.S. Bankruptcy Court for
the Eastern District of North Carolina ruled that a mediator will
report the results of a mediated conference settlement in Croatan
Surf Club, LLC's Chapter 11 case within the earlier of 10 days
after the conference is completed or July 18, 2011.
Specifically, Royal Bank of America's motions for valuations,
determination of voting rights and claim classification, and
relief from the automatic stay are referred to the mediated
settlement conference to be concluded before July 18, 2011.
A mediator selected by agreement of the parties will be paid at a
rate agreed upon them. If the parties fail to select a mediator,
the Court will select a mediator who will be paid at the rate of
$250 per hour for time spent in the mediated settlement
conference, to be billed in quarter-hour segments.
The mediator will schedule the date, time and location of the
conference and timely notify all attorneys and unrepresented
parties.
About Croatan Surf
Kill Devil Hills, North Carolina-based Croatan Surf Club, LLC,
owns a 36-unit ocean-front condominium building in Dare County,
North Carolina. It filed for Chapter 11 bankruptcy protection
(Bankr. E.D.N.C. Case No. 11-00194) on Jan. 10, 2011. Walter L.
Hinson, Esq., and Maureen Radford, at Hinson & Rhyne, P.A., in
Wilson, N.C., represent the Debtor as counsel. Silverang &
Donohoe LLC serves as co-counsel. No creditors committee has been
formed in the case. In its schedules, the Debtor disclosed
$26,151,718 in assets and $19,350,000 in liabilities.
CRYSTAL CATHEDRAL: Diocese Taps Advisers to Mull Bid for Property
-----------------------------------------------------------------
Alex Murashko at the Christian Post reports Catholic Bishop Tod D.
Brown has authorized The Busch Law Firm and other diocese advisers
to "explore the possibilities" regarding Crystal Cathedral and its
35-acre property. The Diocese of Orange is looking into the
construction of a cathedral in Santa Ana to accommodate about
1.2 million Catholics in Orange County. The county holds the 11th
largest diocese in the United States.
Chapman University, which is considering building a medical school
on the site, and Orange County-based real estate investment firm
Greenlaw Partners LLC, have already submitted bids for the assets.
Crystal Cathedral filed a proposed Chapter 11 plan in May, to be
funded by selling its property for $46 million to Greenlaw
Partners. The church would lease the property back with the right
to repurchase.
The official committee of unsecured creditors is backing the "far
superior offer" from Chapman University. The creditors are urging
the bankruptcy judge to allow dueling exit plans in the
megachurch's bankruptcy case.
About Crystal Cathedral
Crystal Cathedral Ministries is a Southern California-based
megachurch founded by television evangelist Robert Schuller. The
church, known for its television show "The Hour of Power."
Crystal Cathedral filed for Chapter 11 bankruptcy protection
(Bankr. C.D. Calif. 10-24771) on Oct. 18, 2010. The Debtor
disclosed $72,872,165 in assets and $48,460,826 in liabilities as
of the Chapter 11 filing. Marc J. Winthrop, Esq., at Winthrop
Couchot P.C. represent the Debtor.
The U.S. Trustee for Region 16 appointed seven members to the
official committee of unsecured creditors in the Chapter 11 case
of Crystal Cathedral Ministries. Todd C. Ringstad, Esq., at
Ringstad & Sanders, LLP, represent the Committee.
CRYSTAL CATHEDRAL: To Consider Alternative Offers for Church
------------------------------------------------------------
Dow Jones' DBR Small Cap reports that Crystal Cathedral Ministries
took steps to abandon a stalking-horse bid from a real- estate
development firm, signaling it might be entertaining other offers
amid a surge of interest in the Southern California megachurch and
its property.
According to the Orange County Register, an attorney representing
the Crystal Cathedral told the bankruptcy court that the church
board is actively considering several offers other than one made
by a Newport Beach developer in May.
According to the report, the cathedral requested and received a
partial withdrawal from a plan that would make developer Greenlaw
Partners LLC, the main bidder for the 35-acre church campus. The
plan, which the church withdrew, also entitled Greenlaw to a
"break-up fee" of $920,000 if outbid.
The reorganization plan submitted to the court in May stated that
Greenlaw offered $46 million for the church property with a 15-
year leaseback of the church's core buildings so Crystal
Cathedral's ministries could continue. Greenlaw also proposed a
$30 million buyback price and a leaseback for $307,000 per month
with 3 percent annual rent increases. In addition, they say they
would hundreds of apartment units on a portion of the church's 35-
acre campus.
The report says attorney Marc Winthrop, who is representing the
Cathedral, said the church's board needs time to analyze a handful
of proposals that are before it. He said the board is no longer
looking favorably at Greenlaw's proposal.
Mr. Winthrop said that while Greenlaw's proposal does not satisfy
those issues, other proposals that are now before the church board
do. An attorney for Greenlaw, who spoke briefly before the judge,
opposed the cathedral's partial withdrawal from the plan citing
procedural issues.
Gwyn Myers, a church board member, said she and other trustees are
considering several proposals.
The report relates that Nanette Sanders, the attorney representing
the creditors committee, said the committee supports the church's
withdrawal from the plan and their willingness to consider
proposals other than Greenlaw's.
In a court filing, the committee favored a proposal by Chapman
University last week. The university, which hopes to set up a
health sciences satellite campus on the property, also offered $46
million for the campus, allowing the church to lease back its core
buildings with the exception of the Welcome Center at $150,000 a
month for a 15-year-term.
A status and scheduling hearing has been set for 11 a.m. Aug. 1,
2011.
About Crystal Cathedral
Crystal Cathedral Ministries is a Southern California-based
megachurch founded by television evangelist Robert Schuller. The
church, known for its television show "The Hour of Power."
Crystal Cathedral filed for Chapter 11 bankruptcy protection
(Bankr. C.D. Calif. 10-24771) on Oct. 18, 2010. The Debtor
disclosed $72,872,165 in assets and $48,460,826 in liabilities as
of the Chapter 11 filing. Marc J. Winthrop, Esq., at Winthrop
Couchot P.C. represent the Debtor.
The U.S. Trustee for Region 16 appointed seven members to the
official committee of unsecured creditors in the Chapter 11 case
of Crystal Cathedral Ministries. Todd C. Ringstad, Esq., at
Ringstad & Sanders, LLP, represent the Committee.
CRYSTALLEX INT'L: FMR LLC No Longer Owns Shares
-----------------------------------------------
In an amended Schedule 13G filing with the U.S. Securities and
Exchange Commission, FMR LLC and Edward C. Johnson 3d disclosed
that they do not beneficially own shares of common stock of
Crystallex International Corporation. A full-text copy of the
filing is available for free at http://is.gd/rDild1
About Crystallex International
Based in Toronto, Canada, Crystallex International Corporation
(TSX: KRY) (NYSE Amex: KRY) -- http://www.crystallex.com/-- is a
Canadian-based company, which has been granted the Mine Operating
Contract to develop and operate the Las Cristinas gold properties
located in Bolivar State, Venezuela.
"As at Sept. 30, 2010, the Company had working capital of
US$12.50 million, including cash of $21.47 million. Management
estimates that these funds will be sufficient to meet the
Company's obligations and budgeted expenditures for the
foreseeable future, but will not be sufficient to repay the
US$100.00 million notes payable due on December 23, 2011."
The Company's balance sheet at March 31, 2011, showed US$38.41
million in total assets, US$114.80 million in total liabilities
and a US$76.39 million total deficit.
DEBUT BROADCASTING: Issues Promissory Note to Diversified
---------------------------------------------------------
In accordance with the board of directors meeting held on June 28,
2011, Debut Broadcasting Corporation, Inc., issued a Convertible
Promissory Note to Diversified Support Services, LLC, pursuant to
which the Company issued the Revised and Amended Note to the
Investor, revising the original promissory note date Sept. 30,
2009, in exchange for a line of credit for an additional $100,000
resulting in gross potential proceeds of $785,692. Under the Note
the outstanding debt can be converted into Company common stock at
a conversion rate of $0.05 per share. The note carries an
automatic conversion provision, in which The Note will
automatically convert to stock if the average stock price over 180
days is $0.35 or higher. The Note will earn interest at 12% per
annum on the balance utilized, and be due July 31, 2013, unless
fully converted earlier. The applicable interest on the note
accrues into the loan balance, and is due at maturity. There is
already outstanding $685,692 under the Note.
A full-text copy of the Amendment and Extension of Convertible
Promissory Note is available for free at http://is.gd/FksIfn
About Debut Broadcasting
Debut Broadcasting Corporation, Inc. (OTC BB: DBTB) --
http://www.debutbroadcasting.com/-- is a radio broadcasting and
syndication company that produces and distributes syndicated radio
programming to radio stations in the United States and Canada.
The company maintains radio syndication in Nashville, Tenn., and
produces and distributes 15 radio programs, which are broadcasted
over approximately 1,400 radio station affiliates. It owns and
operates five broadcast radio stations, which include WIQQ FM
102.3 MHz in Leland, WBAQ FM 97.9 MHz and WNIX AM 1330 kHz in
Greenville, and WNLA FM 105.5 MHz and WNLA AM 1380 kHz in
Indianola, Miss. The company is based in Nashville, Tenn.
The Company reported a net loss of $29,359 on $4.76 million of
gross revenues for the year ended Dec. 31, 2010, compared with a
net loss of $419,593 on $4.34 million of gross revenues during the
prior year.
The Company's balance sheet at March 31, 2011, showed
$4.14 million in total assets, $4.49 million in total liabilities,
and a $255,451 total stockholders' deficit.
As reported by the TCR on April 6, 2011, Silberstein Ungar, PLLC,
in Bingham Farms, Michigan, expressed substantial doubt about the
Company's ability to continue as a going concern. The independent
auditors noted that the Company has incurred losses from
operations, has a working capital deficit, and is in need of
additional capital to grow its operations so that it can become
profitable.
DIMENSION HEALTH: Moody's Affirms B3 Bond Rating; Outlook Stable
----------------------------------------------------------------
Moody's Investors Service has affirmed the B3 bond rating assigned
to approximately $59.6 million of Series 1994 fixed rate bonds
issued by Dimensions Health Corporation (DHC) through the Prince
George's County, MD. The rating outlook is revised to stable from
negative.
SUMMARY RATING RATIONALE
The B3 rating affirmation reflects continued sizable operating
losses, large debt and unfunded pension liabilities, very thin
cash balance, significant capital needs from deferred maintenance
and increased competitive pressure. The revision in outlook to
stable from negative reflects recent growth in cash balance from
improved collections, management's renewed focus on operating
improvements, and continued demonstrated support from the State
and County through FY 2012.
STRENGTHS
* A large, essential safety-net healthcare system located in
Prince George's County, Maryland serving a large Medicaid and
uninsured population
* Fully funded debt service reserve fund on all fixed rate debt
outstanding; track-record of making monthly debt service
payments and semi-annual bond payments in full and on time and
never missing a bond payment; DHC made its monthly bond payment
of $512,000 to service a semi-annual bond payment that was made
on July 1, 2011. The next quarterly pension payment of $2.8
million will be made on July 15, 2011
* State of Maryland (Aaa rated) and Prince George's County, MD
(Aaa rated) have demonstrated historical support to keep DHC in
operation by providing operating grants totaling approximately
$164 million over the last ten years. DHC received State and
County operating grants combined of $22 million in FY 2010
($12.6 million from State and $9.0 million from the County) and
$30 million ($15 million each) in FY 2011 (which is the highest
combined amount to date). The State and County both approved
another combined $30 million in operating grants for FY 2012 but
funding beyond 2012 is unknown at this time
* As part of Prince George's County Hospital Authority's
recommendation to develop a strategic restructuring and cost
containment plan, DHC has outlined both short and long term
strategic initiatives to improve operating performance; several
short term initiatives are expected to generate an estimated $22
million of revenue growth and expense savings by FY 2012
CHALLENGES
* Continued very thin liquidity; As of May 31, 2011, unrestricted
liquidity measured $17.5 million (17 days cash on hand and 25%
cash-to-debt); However, due to improved cash collections,
management estimates unrestricted cash to be approximately $24
million at fiscal yearend (FYE) June 30, 2011
* Continued large operating losses and operating cash flow deficit
excluding operating grants. Through eleven months of FY 2011,
DHC recorded a operating loss similar to the prior year period
of $22 million (-6.5% margin) and operating cash flow deficit of
$10.1 million (-3.0% margin) (excluding combined $26.25 million
of State, County, and Magruder Memorial Hospital Trust operating
grants); DHC received the full expected $30 million from the
State and County as of June 30, 2011
* Liabilities continue to outweigh assets. $59.6 million of
outstanding fixed rate bonds as of June 30, 2011 and $101
million unfunded defined benefit pension liability (defined
benefit plan was frozen in December 31, 2007) of June 30, 2010;
DHC contributed $8.5 million to the pension plan in FY 2010. DHC
has not received a response from the IRS on its request for a
waiver for plan year 2007 minimum required contributions; if a
waiver is not granted it would result in a significant financial
risk for DHC (the current amount of 2007 contributions have been
reduced to approximately $9 million as of June 30, 2011 from a
high of approximately $15 million as of plan year 2007 as the
system continues to make quarterly payments that include plan
year 2007 contributions)
* The independent Prince George's County Hospital Authority,
established to find a new owner(s) for the system, was
unsuccessful in selling the system after a two year state
legislative mandate which ended on May 22, 2010; The Authority's
final report outlined several recommendations to make the system
financially sound and improve healthcare delivery in the county
* Very modest capital spending over last the last ten years (less
than one times depreciation expense) resulting in a steadily
increased 20 years average age of plant in FY 2011; deferred
maintenance remains an ongoing challenge
* Serves a high Medicaid and Self Pay population (measured by 40%
of gross revenues in FY 2011)
DETAILED CREDIT DISCUSSION
LEGAL SECURITY: The bonds are secured by a pledge of "receipts"
derived from the health care operations and an assignment of the
lease in the health care facilities. The actual health care
buildings are owned by Prince George's County, MD and are leased
to DHC through 2042. The Master Trustee can terminate the lease by
virtue of an event of default by DHC and assign the lease and
operation of the facilities to another operator. As of June
30,2011, a debt service fund in the amount of approximately $4.6
million and a separate debt service reserve fund in the amount of
$6.6 million for a total of approximately $11.2 million existed
for the protection of the Series 1994 bondholders.
DEBT STRUCTURE: The current debt structure is 100% fixed rate debt
with no swaps outstanding.
INTEREST RATE DERIVATIVES: None
RECENT DEVELOPMENTS/RESULTS
Dimensions Health Corporation (DHC), the largest safety net
provider in Prince George's County, Maryland, continues to face
significant operating challenges. Cash remains a very thin $17.5
million as of May 31, 2011 (17 days cash on hand and 25% cash-to-
debt). However, due to improved cash collections in recent months,
management estimates total cash balance to improve to an estimated
$24 million at fiscal yearend (FYE) June 30, 2011. DHC continues
to make monthly debt service payments. On July 1, 2011, a $512,000
monthly bond payment was made to service its semi-annual bond
payment that was made on July 1, 2011. The next quarterly pension
payment of $2.8 million will be made on July 15, 2011. The debt
service reserve fund is fully funded at this time ($6.6 million).
DHC's continues to produce large operating losses and operating
cash flow deficits (excluding State, County, and Magruder Memorial
Hospital Trust Operating Grants). Through eleven months of FY
2011, DHC posted an operating loss of $22 million (-6.5% margin)
from an operating loss of $21 million (-6.2% margin) through
eleven months of FY 2010. Operating cash flow deficit increased to
$10.1 million (-3.0% margin) from a deficit of $8.9 million (-2.6%
margin), respectively. As of June 30, 2011, DHC has received
operating grants totaling $31 million. Similar to FY 2011, the
State and County have approved a combined $30 million in operating
grants for FY 2012 ($15 million each). However, funding level
beyond FY 2012 is unknown at this time. Favorably, both the State
and County have demonstrated a history of financial support to
keep the system in operation by providing operating grants
totaling approximately $164 million over the last ten years.
In August 2010, a new President and Chief Executive Officer (CEO)
was appointed following the resignation of the former CEO of five
years. The current CEO served as the chair of the Prince George's
County Hospital Authority, which was established under the May
2008 state legislation to find a new owner(s) for the system under
a two year mandate which ended on May 22, 2010. The Authority was
unsuccessful at its attempt to find a new buyer. The Authority
released a final report of its findings and a outlined
recommendations to the State and County which included developing,
in conjunction with DHC, a strategic restructuring and cost
containment plan to improve operating performance.
There is a renewed focused by DHC management to improve operating
performance and management has also outlined a detailed plan of
short and long term strategic initiatives. Several of the short
term initiatives are expected to generate approximately $22
million in total benefits by FY 2012. Some of the changes made to
date include the closing of Gladys Spellman Specialty Hospital and
Nursing Center by transferring chronic care beds to Laurel
Regional Hospital and taking out of service long-term beds,
reducing agency labor costs, evaluating supply chain management
and drug costs, restructuring fringe benefit plans, developing a
plan to grow services particularly for the population the system
serves including implementing a Women's Health Center later this
year, and improving collections and denials management.
Management's goal is to reduce DHC' dependence on operating grants
and to generate a positive net income before operating grants
within three years.
In the absence of operating improvements, securing permanent
funding and finding a longer term solution to address operating
challenges, Moody's believes DHC' ability to make future bond and
pension payments and remain viable will continue to be a
significant challenge.
Outlook
The revision in outlook to stable from negative reflects recent
growth in cash balance from improved collections, management's
renewed focus on operating improvements, and continued
demonstrated support from the State and County through FY 2012.
WHAT COULD MAKE THE RATING GO - UP
A rating upgrade is unlikely in the short-term; over the longer-
term, a rating upgrade would be considered if DHC secures stable
and permanent external funding, demonstrates and sustains
substantial operating improvement; rebuilds cash to demonstrate
long-term viability
WHAT COULD MAKE THE RATING GO - DOWN
Inability to find a solution to financial challenges and failure
to secure long-term funding; further erosion of operating
performance, decline in cash balance; payment default on bonds and
pension plan payments and/or bankruptcy filing
KEY INDICATORS
Assumptions & Adjustments:
- Based on financial statements for Dimensions Health Corporation
and Subsidiaries
- First number reflects audit year ended June 30, 2010 - Excludes
operating grants from State, County and Magruder Memorial
Hospital Trust of $22.718 million
- Second number reflects unaudited year ended May 31, 2011
(annualized) - Excludes operating grants from State, County, and
Magruder Memorial Hospital Trust of $26.250 as of May 31, 2011
- Third number reflects unaudited year ended May 31, 2011
(annualized) - Includes operating grants of $26.250 million
- Investment returns normalized at 6% unless otherwise noted
* Inpatient admissions: 19,931; 17,127 (eleven months FY 2011)
* Total operating revenues: $338.7 million; $359.1 million
* Moody's-adjusted net revenue available for debt service: ($8.7)
million; ($7.8) million
* Total debt outstanding: $69.6 million; $69.6 million
* Maximum annual debt service (MADS): $7.2 million; $7.2 million
* MADS Coverage with reported investment income: negative,
negative, 1.9 times
* Moody's-adjusted MADS Coverage with normalized investment
income: negative, negative, 2.8 times
* Debt-to-cash flow: negative, negative, .4.4 times
* Days cash on hand: 19.6 days; 17 days
* Cash-to-debt: 28%; 25%,
* Operating margin: -7.2%; -6.5%, 0.6%
* Operating cash flow margin: -3.5%; -3.0%, 3.8%
RATED DEBT (debt outstanding as of June 30, 2011)
- Series 1994 fixed rate ($59.6 million outstanding); rated B3
CONTACTS
Obligor: Neil Moore, Dimensions Health Corporation, Executive Vice
President/ Chief Financial Officer, (301) 583-4000; Clive Savory,
Dimensions Health Corporation, Vice President of Finance/System
Controller, (240) 456-2240
The last rating action with respect to Dimensions Health
Corporation was on June 14, 2010, when a municipal finance scale
B3 rating affirmed and outlook remained negative.
PRINCIPAL METHODOLOGY USED
The principal methodology used in this rating was Not-for-Profit
Hospitals and Health Systems published in January 2008.
DYNEGY INC: In Talks to Amend Loans for New Ownership Structure
---------------------------------------------------------------
Dynegy Inc. announced the initiation of discussions with potential
lenders for new senior secured credit facilities supporting a new
organizational structure aligned with its gas and coal generation
assets. The new credit facilities will replace the existing
credit agreement, marking the initial step in the Company's
operating and financial restructuring.
"These restructuring actions will provide a solid foundation for
Dynegy to begin addressing the financial challenges that have been
magnified by an environment of low commodity prices," said Robert
C. Flexon, President and Chief Executive Officer. "The new
financings, accompanied by the modification of the Company's asset
ownership structure, will create an on-going platform intended to
improve Dynegy's financial condition and more efficiently align
the operation and management of the Company's assets, which will
serve as a step to reestablish Dynegy as an energy industry
leader."
On July 11, 2011, the Company launched the process of seeking
lenders for the new senior secured credit facilities, which it
anticipates completing at the end of July 2011. In conjunction
with entering into the new credit facilities, the Company would
reorganize its operations to facilitate the new credit facilities,
align the Company's asset base and maximize its flexibility to
address additional potential debt restructuring activities. As a
result of the anticipated reorganization, one subsidiary ("GasCo")
would own a portfolio of eight primarily natural gas-fired
intermediate and peaking power generation facilities diversified
across the West, Midwest and Northeast regions of the United
States, totaling 6,771 MW of generating capacity. Another
subsidiary ("CoalCo") would own a portfolio of six primarily coal-
fired baseload power generation facilities located in the Midwest,
totaling 3,132 MW of generating capacity. Dynegy's remaining
assets would not be a part of either GasCo or CoalCo.
The new credit facilities would consist of a $1,300 million, 6
year senior secured term loan facility available to GasCo and a
$400 million, 6 year senior secured term loan facility available
to CoalCo. The Company has engaged Credit Suisse and Goldman
Sachs as joint lead arrangers and Barclays Capital as a co-manager
for the new credit facilities, but the financing is not committed
and there can be no assurance that the Company will consummate any
or all of its reorganization and financing plans.
Proceeds from the GasCo Facility are expected to be used (i) to
repay the outstanding indebtedness under the existing senior
secured credit facility at Dynegy Holdings Inc., (ii) at the
option of GasCo, to repay existing debt relating to Sithe Energies
Inc., (iii) to make a $400 million restricted payment to a parent
holding company of GasCo, (iv) to fund cash collateralized letters
of credit and cash collateral for existing collateral
requirements, (v) to pay related transaction fees and expenses and
(vi) for GasCo's general working capital and liquidity purposes.
Proceeds from the CoalCo Facility are expected to be used (i) to
fund cash collateralized letters of credit and cash collateral for
existing collateral requirements, (ii) to pay related transaction
fees and expenses and (iii) for CoalCo's general working capital
and general corporate purposes.
About Dynegy Inc.
Through its subsidiaries, Houston, Texas-based Dynegy Inc.
(NYSE:DYN) -- http://www.dynegy.com/-- produces and sells
electric energy, capacity and ancillary services in key U.S.
markets. The power generation portfolio consists of approximately
12,200 megawatts of baseload, intermediate and peaking power
plants fueled by a mix of natural gas, coal and fuel oil.
Failed Sale
The Troubled Company Reporter has chronicled Dynegy's attempts to
sell itself. In August 2010, Dynegy struck a deal to be acquired
by an affiliate of The Blackstone Group at $4.50 a share or
roughly $4.7 billion. That offer was raised to $5.00 a share in
November. Through Carl Icahn and investment fund Seneca's
efforts, shareholders thumbed down both offers.
In December 2010, an affiliate of Icahn commenced a tender offer
to purchase all of the outstanding shares of Dynegy common stock
for $5.50 per share in cash, or roughly $665 million in the
aggregate. In February 2011, Icahn Enterprises L.P. terminated
the proposed merger agreement with the Company after it failed to
garner the required number of shareholder votes.
Goldman, Sachs & Co. and Greenhill & Co., LLC, served as financial
advisors and Sullivan & Cromwell LLP served as legal counsel to
Dynegy on the sale efforts.
Bankruptcy Warning
Dynegy warned shareholders in March it might be forced into
bankruptcy if it is unable to renegotiate the terms of its
existing debt.
The Company's balance sheet at Dec. 31, 2010, showed
$10.013 billion in total assets, $7.267 billion in total
liabilities, and stockholders' equity of $2.746 billion.
Ernst & Young LLP, in Houston, said that Dynegy projects that it
is likely that it will not be able to comply with certain debt
covenants throughout 2011. "This condition and its impact on
Dynegy Inc.'s liquidity raises substantial doubt about Dynegy
Inc.'s ability to continue as a going concern."
* * *
As reported by the Troubled Company Reporter on March 14, 2011,
Fitch Ratings downgraded the ratings on Dynegy and its
subsidiaries after Dynegy's auditors raised substantial doubt as
to its ability to continue as a going concern and the company
announced it would likely trip debt covenants in its credit
facilities.
The Company's balance sheet at March 31, 2011, showed $9.82
billion in total assets, $7.15 billion in total liabilities and
$2.67 billion in total stockholders' equity.
DYNEGY INC: Carolyn Burke to Serve as EVP and CAO
-------------------------------------------------
Dynegy Inc. announced that Carolyn J. Burke will join Dynegy as
Executive Vice President and Chief Administrative Officer,
effective Aug. 30, 2011. Carolyn will serve on Dynegy's executive
management team and report to Robert C. Flexon.
As Executive Vice President and Chief Administrative Officer,
Burke will be responsible for managing key corporate functions
including Information Technology, Human Resources, Investor
Relations and Communications. Central to Carolyn's
responsibilities will be driving improvements to Dynegy's cost
structure through the design of the Company's work processes.
"I am pleased that Carolyn has agreed to join Dynegy in this
important role," said Robert C. Flexon, who has recently agreed to
serve as Dynegy's CEO. "Carolyn's experience in the design and
streamlining of business processes will build upon efforts
undertaken by the Company to date adding to the cost effectiveness
of the Company's structure and business processes. Furthermore,
her knowledge of the power industry and commodities market will
make her an immediate contributor and integral member of the
executive management team."
Burke, 44, has served as Global Controller for J.P. Morgan's
Global Commodities business since March 2008. She was also NRG
Energy's Vice President and Corporate Controller from September
2006 to March 2008 and Executive Director of Planning and Analysis
from April 2004 to September 2006. Prior to joining NRG Energy,
Burke held various key financial roles at Yale University, the
University of Pennsylvania and at Atlantic Richfield Company (now
British Petroleum).
Dynegy Inc. previously announced the appointments of the following
officers: Robert C. Flexon, President and Chief Executive Officer,
effective July 11, 2011; Kevin T. Howell, Executive Vice President
and Chief Operating Officer, effective July 5, 2011; and Clint C.
Freeland, Executive Vice President and Chief Financial Officer,
effective July 5, 2011. As an inducement to their appointments,
Messrs. Flexon, Howell and Freeland will be issued in a private
placement 42,017, 12,605 and 8,306 shares of Dynegy common stock
with an aggregate fair market value of $250,000, $75,000, and
$50,000, respectively. As an inducement to Ms. Burke's
appointment, she will also be issued in a private placement 8,000
shares of Dynegy common stock with an aggregate fair market value
of $50,000.
About Dynegy Inc.
Through its subsidiaries, Houston, Texas-based Dynegy Inc.
(NYSE:DYN) -- http://www.dynegy.com/-- produces and sells
electric energy, capacity and ancillary services in key U.S.
markets. The power generation portfolio consists of approximately
12,200 megawatts of baseload, intermediate and peaking power
plants fueled by a mix of natural gas, coal and fuel oil.
Failed Sale
The Troubled Company Reporter has chronicled Dynegy's attempts to
sell itself. In August 2010, Dynegy struck a deal to be acquired
by an affiliate of The Blackstone Group at $4.50 a share or
roughly $4.7 billion. That offer was raised to $5.00 a share in
November. Through Carl Icahn and investment fund Seneca's
efforts, shareholders thumbed down both offers.
In December 2010, an affiliate of Icahn commenced a tender offer
to purchase all of the outstanding shares of Dynegy common stock
for $5.50 per share in cash, or roughly $665 million in the
aggregate. In February 2011, Icahn Enterprises L.P. terminated
the proposed merger agreement with the Company after it failed to
garner the required number of shareholder votes.
Goldman, Sachs & Co. and Greenhill & Co., LLC, served as financial
advisors and Sullivan & Cromwell LLP served as legal counsel to
Dynegy on the sale efforts.
Bankruptcy Warning
Dynegy warned shareholders in March it might be forced into
bankruptcy if it is unable to renegotiate the terms of its
existing debt.
The Company's balance sheet at Dec. 31, 2010, showed
$10.013 billion in total assets, $7.267 billion in total
liabilities, and stockholders' equity of $2.746 billion.
Ernst & Young LLP, in Houston, said that Dynegy projects that it
is likely that it will not be able to comply with certain debt
covenants throughout 2011. "This condition and its impact on
Dynegy Inc.'s liquidity raises substantial doubt about Dynegy
Inc.'s ability to continue as a going concern."
* * *
As reported by the Troubled Company Reporter on March 14, 2011,
Fitch Ratings downgraded the ratings on Dynegy and its
subsidiaries after Dynegy's auditors raised substantial doubt as
to its ability to continue as a going concern and the company
announced it would likely trip debt covenants in its credit
facilities.
The Company's balance sheet at March 31, 2011, showed $9.82
billion in total assets, $7.15 billion in total liabilities and
$2.67 billion in total stockholders' equity.
EL PASO HOUSING: Moody's Lifts Series 2000D Bond Rating to 'Ba2'
----------------------------------------------------------------
Moody's Investors Service has affirmed the rating on El Paso
Housing Finance Corporation, Multifamily Mortgage Revenue Bonds
(American Village Communities - Wallington Plaza and Timberwolf
Apartments) Series 2000A. The rating on $8,280,000 of outstanding
Senior Series 2000A bonds is A3. The Series 2000B bonds have
matured. The rating on $1,300,000 of outstanding Subordinate
Series 2000C bonds has been upgraded to Baa2 from Baa3. The rating
on $1,425,000 of outstanding Junior Subordinate Series 2000D bonds
has been upgraded to Ba2 from Ba3. The outlook on Series 2000A and
Series 2000C is stable, and the outlook on Series 2000D is
positive. The rating actions reflect the strong financial
performance of the property over the past several years resulting
in high debt service coverage levels.
LEGAL SECURITY: The bonds are secured by rental revenues from
Wallington Plaza and Timberwolf Apartments, as well as several
reserve funds held by the Trustee and pledged to the benefit of
bondholders.
INTEREST RATE DERIVATIVES: none
CREDIT STRENGTHS
* Strong financial performance: Moody's-adjusted debt service
coverage levels based upon audited financial statements for for
FY2010 are 2.07x for Series 2000A, 1.78x for Series 2000C bonds
and 1.50x for Series 2000D bonds. The debt service coverage
levels are calculated based on annual debt service for each year
and consider the contributions to the replacement reserve fund
as operating expenses.
* Physical occupancy remains fully occupied and averaged 96% in
2010.
* Management continues to maintain Timberwolf and Wallington Plaza
through various capital repairs funded by excess operating cash
as well as funds available in the replacement reserve fund.
CREDIT CHALLENGES
* Properties are located in El Paso, Texas, which offers
competitive single family housing alternatives to multifamily
housing, as measured by Moody's Economy.com Housing
Affordability Index.
* Risks inherent in the affordable multifamily housing sector.
Moody's considers this housing sector particularly volatile due
to the market forces that determine occupancy rates and the
number of underperforming properties that Moody's reviews.
Outlook
The outlook on the bonds has been affirmed at stable. The outlook
reflects the consistent performance of the property and debt
service coverage levels.
What could change the rating - UP
* Significant and consistent improvement in debt service coverage.
The Series 2000A bonds already carry one of the highest ratings
in Moody's portfolio of unsubsidized multifamily housing
credits.
What could change the rating - DOWN
* Decline in debt service coverage for any series of bonds
* Decline in occupancy rates and a resulting increase in economic
vacancy
The principal methodology used in this rating was "Global Housing
Projects", published in July 2010.
ELLICOTT SPRINGS: U.S. Trustee Seeks to Convert Case to Chapter 7
-----------------------------------------------------------------
The United States Trustee asks the U.S. Bankruptcy Court for the
District of Colorado to convert the Chapter 11 case of Ellicott
Springs Resources, LLC, to one under Chapter 7 of the Bankruptcy
Code.
Joanne C. Speirs, Esq., representing U.S. Trustee Charles F.
McVay, relates that cause exists to dismiss or convert this case
because:
(i) The Chapter 11 Trustee has been administering the assets
of the estate for approximately five months and has not
filed a Plan or Disclosure Statement, nor has there been
a motion to sell the assets of the estate. There has been
delay in the administration of this case that is
prejudicial to creditors.
(ii) In correspondence to the undersigned regarding the status
of the case, the Chapter 11 Trustee indicated that the
litigation and the sale of any assets could be completed
in a Chapter 7 proceeding.
(iii) The Chapter 11 Trustee has failed to submit any monthly
operating reports since he was appointed. The last report
was submitted by the Debtor for the period ending
11/30/10.
(vi) The Chapter 11 Trustee is required to file and transmit to
the U.S. Trustee a statement of disbursements made during
the quarter and of any fees payable. The Chapter 11
Trustee has not filed monthly operating report which
includes quarterly disbursement information. The failure
to file quarterly disbursement information is cause for
conversion of this case.
(v) The Chapter 11 Trustee is required to pay quarterly fees.
The Chapter 11 Trustee has failed to pay the fees since
The 2nd quarter of 2010. Therefore, the fees for the 3rd
and the 4th quarter 2010 and 1st quarter of 2011 are
owing.
About Ellicott Springs
Colorado Springs, Colorado-based Ellicott Springs Resources, LLC,
filed for Chapter 11 bankruptcy protection (Bankr. D. Colo. Case
No. 10-13116) on Feb. 19, 2010. The Company disclosed $21,940,030
in assets and $8,411,246 in liabilities as of the Chapter 11
filing.
Ellicott Springs Development, LLC; PLW, Inc. (Case No. 10-13114);
and Rodney J. Preisser (Case No. 10-13110), the Debtor's
affiliates are also based in Colorado Springs, Colorado, and each
estimated assets and debts at $10 million to $50 million.
Lee M. Kutner, Esq., who has an office in Denver, Colorado,
represents the Debtors in their restructuring effort.
On Jan. 11, 2011, the Court vacated its order for joint
administration and directed separate administration of Chapter 11
estates.
ENCOMPASS GROUP: Posts $2.4 Million Net Loss in Q3 Ended March 31
-----------------------------------------------------------------
Encompass Group Affiliates, Inc., reported a net loss of
$2.4 million on $18.9 million of sales for the three months ended
March 31, 2011, compared with a net loss of $2.6 million on
$23.6 million of sales for the three months ended March 31, 2010.
For the nine months ended March 31, 2011, the net loss was
$9.4 million on $62.2 million of sales, compared with a net loss
of $5.5 million on $68.0 million of sales for the nine months
ended March 31, 2010.
The Company's balance sheet at Marc 31, 2011, showed $40.8 million
in total assets, $52.4 million in total liabilities, $8.9 million
of Series E preferred stock, and a stockholders' deficit of
$20.5 million.
A copy of the Form 10-Q is available at http://is.gd/NfKRG9
As reported in the TCR on June 24, 2011, J.H. Cohn LLP, in New
York City, expressed substantial doubt about Encompass Group
Affiliates' ability to continue as a going concern, following the
Company's results for the fiscal year ended June 30, 2010. The
independent auditors noted that the Company incurred an operating
loss of $16.9 million and a net loss of $28.8 million for the year
ended June 30, 2010, and the Company's consolidated balance sheet
reflects a stockholders' deficiency of $10.2 million.
About Encompass Group
Lawrenceville, Ga.-based Encompass Group Affiliates, Inc., is a
public company specializing in the technology aftermarket service
and supply chain known as reverse logistics.
ENSIGN FEDERAL: NCUA Win Court Not to Foreclose Building
--------------------------------------------------------
Chris Sieroty at Las Vegas Review-Journal reports that the
National Credit Union Administration has received court permission
to foreclose on a speculative downtown Las Vegas office building
it inherited after the 2009 liquidation of Ensign Federal Credit
Union.
According to the report, spokesman David Small said the NCUA has
not begun foreclosure proceedings, since the stay was just lifted
last month by a federal bankruptcy court.
The court ruling will allow the NCUA, which holds a $1.5 million
debt on the property located at 2500 E. Washington Ave., to sell
the building, Las Vegas Review-Journal relates.
Las Vegas Review-Journal says the NCUA inherited the loan after it
liquidated the Henderson-based credit union.
Ensign FCU had 7,900 members and $98 million when it was placed
into involuntary liquidation on Nov. 13, 2009, and InTouch Credit
Union (formerly EDS Credit Union) of Dallas purchased and assumed
Ensign's member share accounts.
EVERGREEN INT'L: Moody's Upgrades Corp. Family Rating to 'B3'
-------------------------------------------------------------
Moody's Investors Service upgraded the Corporate Family and
Probability of Default ratings of Evergreen International
Aviation, Inc. to B3 from Caa1. Moody's also assigned a B2 rating
to this issuer's new $200 million first lien credit facility due
2015 and a Caa1 rating to the new $110 million second lien credit
facility also due 2015. Evergreen used the proceeds of these new
credit facilities to refinance its existing bank credit
facilities, of which the first lien had a near term maturity in
October 2011. Moody's will withdraw its ratings on the credit
facilities that have been paid off. The outlook is stable. These
actions resolve the review for upgrade that Moody's initiated on
December 9, 2010.
Upgrades:
-- Corporate Family Rating, Upgraded to B3 from Caa1
-- Probability of Default Rating, Upgraded to B3 from Caa1
Assignments:
-- First Lien Senior Secured Bank Credit Facility, assigned B2,
33, LGD3
-- Second Lien Senior Secured Bank Credit Facility, assigned
Caa1, 78, LGD5
Outlook Actions:
-- Outlook, Changed To Stable From Under Review for Upgrade
Ratings to be Withdrawn:
Issuer: Evergreen International Aviation, Inc.
-- Senior Secured First Lien Bank Credit Facility, Withdrawn,
previously rated B3, 32 LGD3
-- Senior Secured Second Lien Bank Credit Facility, Withdrawn,
previously rated Caa2, 76 LGD5
RATINGS RATIONALE
The upgrades of the family ratings and the stable outlook reflect
Moody's belief that Evergreen's air freight and helicopter
operations should generate sufficient cash flow to allow the
company to meet the debt service obligations of the refinanced
capital structure. The refinancing has also strengthened the
company's liquidity, with approximately $15 million of cash going
to the balance sheet. The recent sale of the maintenance, repair
and overhaul (MRO) operation, which included the company's
aircraft storage facility in Arizona, facilitated the retirement
of approximately $30 million of debt prior to the closing of the
refinancing in June 2011. This was in addition to the
approximately $77 million the company repaid during its most
recent fiscal year ended February 28, 2011. While the MRO
operation contributed modestly to consolidated EBITDA, the
incremental reduction in debt should help the company maintain its
single-B like leverage (Debt to EBITDA) profile.
The B3 Corporate Family rating recognizes the stabilizing effect
on operations of being a key supplier to the U.S. Department of
Defense. The company has a long history of providing service to
the DoD's Air Mobility Command under the Civil Reserve Air Fleet
program. This and other government contracts, particularly in the
helicopter segment and a sizeable variable cost component, should
provide a base line of operating earnings and cash flows from year
to year that will allow the company to sufficiently meet the debt
service obligations of the new credit facility. Importantly,
Evergreen has little exposure to fuel price risk since the
majority of its customers pay for fuel, via pass-through or
surcharge mechanisms. Moody's anticipates that most credit metrics
will remain close to the cross-industry medians of those found at
mid- to low-single B-rated issuers. However, the benefit of these
relatively favorable credit metrics is moderated by several risks.
These include; the potential for softening demand in the air
freight operations, both from the AMC and commercial customers; a
corporate governance structure characterized by a single
shareholder and a board with no independent directors; and modest
levels of headroom under financial covenants in the new credit
facility.
The outlook could be changed to negative or the ratings directly
downgraded if demand from the AMC and or other U.S. government
customers was to significantly decrease such that Evergreen could
not maintain utilization rates at levels needed to generate
positive free cash flow. The weakening of credit metrics such as
Debt to EBITDA that approaches 5.5 times or FFO + Interest to
Interest that approaches 2.0 times could pressure the ratings.
Pressure could also result from an inability to sustain positive
annual free cash flow of at least $8 million or a significant
depletion of the $15 million of unrestricted cash that Moody's
expects the company to have as a result of the refinancing.
Sustained positive free cash flow generation that the company
applies to debt reduction that leads to stronger credit metrics
would place positive pressure on the ratings. For example, Debt to
EBITDA that is sustained below 4.0 times and FFO + Interest to
Interest that exceeds 4.0 times could support a positive rating
action.
The principal methodology used in rating Evergreen was the Global
Business & Consumer Service Industry Rating Methodology published
in October 2010. Other methodologies used include Loss Given
Default for Speculative-Grade Non-Financial Companies in the U.S.,
Canada and EMEA published in June 2009.
Evergreen International Aviation, Inc. is a privately held company
headquartered in McMinnville, Oregon. The company provides
diversified air cargo transportation and aviation support services
including global air cargo shipping, ground handling and
logistics, helicopter transportation services, small aircraft
charters and small aircraft and helicopter maintenance and repair
to government and commercial customers through its various
operating segments.
EVERGREEN SOLAR: Receives Non-Compliance Notice from Nasdaq
-----------------------------------------------------------
Evergreen Solar, Inc., on July 5, 2011, received a deficiency
letter from Nasdaq stating that, based on the closing bid price of
the Company's common stock for the last 30 consecutive business
days, the Company no longer meets the minimum $1.00 per share
requirement for continued listing on the Nasdaq Capital Market
under Marketplace Rule 5450(a)(1). On the same date, the Company
received a second deficiency letter from Nasdaq stating that the
Company is no longer in compliance with Nasdaq's minimum market
value requirement for continued listing on the Nasdaq Capital
Market as set forth in Nasdaq Marketplace Rule 5550(b)(2), which
requires the Company to have a minimum market value for its listed
securities of $35 million for at least 30 consecutive business
days. Despite these notices, the Company's common stock will
continue to trade under the symbol "ESLR."
Under the Nasdaq Marketplace Rules, the Company has a grace period
of 180 calendar days, or until Jan. 3, 2012, in which to regain
compliance with the minimum bid price rule and the minimum market
value requirement. If by that date (1) the bid price of the
Company's common stock does not close at $1.00 per share or more
or (2) the minimum market value of its listed securities is not at
or above the minimum of $35 million, for a minimum of 10
consecutive business days, Nasdaq will provide the Company with
written notice that its securities are subject to delisting. At
that time, the Company may appeal Nasdaq's determination to a
Nasdaq Listing Qualifications Panel, which would stay any further
delisting action by Nasdaq pending a final decision by the panel.
The Company intends to monitor the bid price of its common stock
and the market value of its listed securities. It will also
consider available options if its common stock does not trade at a
level likely to result in the Company regaining compliance with
Nasdaq's minimum bid price and minimum market value requirements
by Jan. 3, 2012.
In the event that the Company's common stock is delisted, the
holders of its existing convertible notes will have the right to
require the Company to repurchase their notes, which it is almost
certain the Company would be unable to do. Such a default under
the Company's obligations to its note holders would likely cause
the Company to file for bankruptcy. Other adverse consequences of
a delisting, should it occur, would be the likely cessation of any
trading market for the Company's common stock other than in the
Pink Sheets or the OTC Bulletin Board. It would therefore become
more difficult to dispose of, or obtain accurate quotations for
the price of, the Company's common stock, and there would likely
also be a further reduction in what little coverage by security
analysts and the news media that remains. Delisting and these
other effects would almost certainly cause the price of the
Company's common stock to decline further.
About Evergreen Solar
Evergreen Solar, (NasdaqCM: ESLR) --
http://www.evergreensolar.com/-- develops, manufactures and
markets String Ribbon(R) solar power products using its
proprietary, low-cost silicon wafer technology.
The Company's balance sheet at April 2, 2011, showed $373,972,000
in assets, $455,506,000 in total liabilities, and a stockholders'
deficit of $81,534,000.
As reported in the TCR on May 17, 2011, Evergreen Solar, Inc.,
incurred a $33.4 million net loss in its fiscal first quarter and
said that it has hired financial and legal advisors to actively
evaluate restructuring alternatives.
The Company said its near-term liquidity has been negatively
impacted as a result of its low year-to-date sales volume and
potentially slower sales for the remainder of this year combined
with expected increased pricing pressure. Furthermore, cash to be
realized through the reduction in accounts receivable and
inventory from the recently closed Devens facility will be less
than previously expected and will take longer than expected to
realize. Accordingly, the Company believes it will need to secure
additional sources of cash sooner than expected and has retained
financial and legal advisors to actively evaluate restructuring
alternatives.
FIDDLER'S CREEK: Court Denies 'Improper Solicitation' Motion
------------------------------------------------------------
Judge K. Rodney May of the U.S. Bankruptcy Court for the Middle
District of Florida denied U.S. Bank, N.A.'s motion to determine
that Fiddler's Creek, LLC and its debtor affiliates have
improperly solicited the homeowners of Fiddler's Creek.
As previously reported by the Troubled Company Reporter on May 11,
2011, U.S. Bank, as indenture trustee to certain bondholders,
alleged that since obtaining approval of the Second Amended Joint
Consolidated Disclosure Statement for Plans of Reorganization of
the Debtors, the Debtors have distributed unauthorized and
misleading solicitations to the homeowners of Fiddler's Creek
seeking acceptance of the Plans. U.S. Bank said the transparent
purpose of the unauthorized and misleading solicitation was to
cause the homeowners to persuade community development districts
to vote in favor of the Plans with respect to the treatment of the
bond debt special assessments, against bondholders' wishes.
About Fiddler's Creek
Fiddler's Creek, LLC, and its affiliates each owns, operates or is
otherwise affiliated with the premier, fully integrated, master
planned residential community known as "Fiddler's Creek" in
southwestern Florida. Fiddler's Creek is located in Collier
County, Florida, approximately 12 miles southeast of the city of
Naples and six miles north of Marco Island. The Fiddler's Creek
development is comprised of nearly 4,000 zoned acres of prime land
in Naples, Florida, and is planned for and capable of
accommodating up to 6,000 residences upon projected build-out,
which is estimated to be in 2020. Fiddler's Creek contains five
distinctive neighborhoods known as: Fiddler's Creek, Veneta,
Aviamar, Marsh Cove and Meadow Run.
Fiddler's Creek filed for Chapter 11 bankruptcy protection on
February 23, 2010 (Bankr. M.D. Fla. Case No. 10-03846). Paul J.
Battista, Esq., Heather L. Yonke, Esq., Mariaelena Gayo-Guitian,
Esq., and Michael L. Schuster, Esq., at Genovese Joblove &
Battista, P.A.; Bart A. Houston, Esq., at Kopelowitz Ostrow; and
Mark Woodward, Esq., serve as counsel to the Debtors. Judge
Alexander L. Paskay presides over the case. The Company estimated
assets and debts at $100 million to $500 million.
Paul S. Singerman, Esq., Jordi Guso, Esq., and Debi Evans Galler,
Esq., at Berger Singerman P.A., represent the Official Unsecured
Creditors Committee as counsel.
FIDDLER'S CREEK: Court Denies U.S. Bank's Motion to Designate
-------------------------------------------------------------
Judge K. Rodney May of the U.S. Bankruptcy Court for the Middle
District of Florida denied U.S. Bank, N.A.'s motion to designate
the acceptances of the proposed treatment of the off roll bond
debt special assessment claims in connection with the Second
Amended Plans of Reorganization of Fiddler's Creek, LLC and its
debtor affiliates.
U.S. Bank, as indenture trustee for certain bondholders, asserted
that the Debtors made multiple improper solicitations of the
homeowners of Fiddler's Creek for the transparent purpose of
influencing the homeowners to cause the Districts to vote in favor
of the Plans with respect to the treatment of the bond debt
special assessments, against the wishes of the bondholders who are
negatively impacted by the impaired treatment.
After an April 18, 2011 joint public meeting, the Districts
scheduled further meetings to determine how to vote on the Plans.
In advance of those meetings, the Indenture Trustee directed the
Districts to reject the Plans with respect to the Bond Debt
Special Assessments. The Districts have not responded to this
demand, but counsel for District #2 advised his board that
District#2 is not required to vote as the Bondholders direct.
Instead, the Districts have submitted to the Debtors acceptances
of the proposed treatment of the Off Roll Bond Debt Special
Assessments.
According to U.S. Bank, the Districts' ulterior motive is obvious:
to advance the interests of the homeowners and maximize the
treatment of the O&M Claims at the expense of the Bond Debt
Special Assessment claims. Accordingly, the Districts voted
acceptances of the Off Roll Bond Debt Special Assessments not in
good faith, and those acceptances should be designated, U.S. Bank
asserted.
Even if the Court finds that the Districts did not accept the Off
Roll Bond Debt Special Assessments in good faith, the Districts'
acceptances of the Off Roll Bond Debt Special Assessments can and
should be designated because the Debtors procured those
acceptances in good faith, U.S. Bank stated. Indeed, those
acceptances were procured in part by the Debtors' improper
solicitations and were thus obtained in violation of Section 1125
of the Bankruptcy Code, U.S. Bank insisted.
About Fiddler's Creek
Fiddler's Creek, LLC, and its affiliates each owns, operates or is
otherwise affiliated with the premier, fully integrated, master
planned residential community known as "Fiddler's Creek" in
southwestern Florida. Fiddler's Creek is located in Collier
County, Florida, approximately 12 miles southeast of the city of
Naples and six miles north of Marco Island. The Fiddler's Creek
development is comprised of nearly 4,000 zoned acres of prime land
in Naples, Florida, and is planned for and capable of
accommodating up to 6,000 residences upon projected build-out,
which is estimated to be in 2020. Fiddler's Creek contains five
distinctive neighborhoods known as: Fiddler's Creek, Veneta,
Aviamar, Marsh Cove and Meadow Run.
Fiddler's Creek filed for Chapter 11 bankruptcy protection on
February 23, 2010 (Bankr. M.D. Fla. Case No. 10-03846). Paul J.
Battista, Esq., Heather L. Yonke, Esq., Mariaelena Gayo-Guitian,
Esq., and Michael L. Schuster, Esq., at Genovese Joblove &
Battista, P.A.; Bart A. Houston, Esq., at Kopelowitz Ostrow; and
Mark Woodward, Esq., serve as counsel to the Debtors. Judge
Alexander L. Paskay presides over the case. The Company estimated
assets and debts at $100 million to $500 million.
Paul S. Singerman, Esq., Jordi Guso, Esq., and Debi Evans Galler,
Esq., at Berger Singerman P.A., represent the Official Unsecured
Creditors Committee as counsel.
FISHERMAN'S WHARF: Bid to Extend Time to Perform under Plan Denied
------------------------------------------------------------------
Fisherman's Wharf of Venice, Inc., did not get the U.S. Bankruptcy
Court for the Middle District of Florida's approval of its motion
to extend deadline to perform under the Confirmed Plan of
Reorganization as to Claim No. 15 filed by Stephen Witzer.
The Debtor explained that it has not been notified of any default
under the Plan; however, its local counsel, Jeffrey A. Boone,
Esq., intercepted an electronic transmission to the City Council
from a resident of Harbor Lights, B.G. Smith that the permits
required for the dock issue has not been resolved. Mr. Smith was
acting as an agent on behalf of secured creditors Stephen Witzer,
David C. Freund, Paecia S. Weinstein, Donna J. Dooley and William
A. Dooley, IRA.
Lynn V.H. Ramey, Esq., in Tampa, Florida -- lynn@rameylaw.com --
asserted that although the Debtor's Plan has been confirmed a
motion for substantial consummation has not yet been filed and the
case is still open. With respect to the Witzer Claim, the Plan
provides a three-month deadline to submit to the current governing
body all proper and appropriate permits and applications for the
completion of the docs and related renovations with a six-month
deadline from the effective date to complete all improvements and
renovations.
Ms. Ramey stressed that the completion of the improvements and
renovations is key to the continued success of the Debtor's
business and continued debt service to Mr. Witzer. To that end,
Mr. Boone has been working diligently to obtain the required
permits, she stated.
The Court denied the Debtor's request without prejudice to the
Debtor's right to file a motion seeking to modify the Confirmed
Plan consistent with Section 1127 of the Bankruptcy Code. If
filed, the motion should articulate the factual and legal basis
for any assertion that the Plan has not been substantially
consummated under Section 1101(2) of the Bankruptcy Code and
articulate the factual and legal basis for confirmation of the
Plan consistent with Section 1127(b).
The Court also sustained Mr. Witzer's objection to the Extension
Motion.
About Fisherman's Wharf of Venice, Inc.
Venice, Florida-based Fisherman's Wharf of Venice, Inc., filed for
Chapter 11 protection (Bankr. M.D. Fla. Case No. 10-10694) on
May 4, 2010. H. Bradley Staggs, Esq., at Bush Ross, P. A.
represents the Debtor. The Company disclosed $15,990,500 in
assets and $13,853,990 in liabilities as of the Chapter 11 filing.
FISHERMAN'S WHARF: To Pay Bush Ross Remaining Balance of Claim
--------------------------------------------------------------
Judge Caryl E. Delano of the U.S. Bankruptcy Court for the Middle
District of Florida directed Fisherman Wharf of Venice, Inc., and
its debtor affiliates to pay $19,534 to Bush Ross, LP as the
remaining balance of the firm's allowed administrative claim.
The Court previously allowed Bush Ross's administrative expense
claim for $90,373. Bush Ross received a total of $70,839 from
Fisherman's Wharf of Venice, Inc., JPKL, LLC and JMT Partners as
retainers.
Reorganized Debtor Fisherman's Wharf Marina Park Ltd. will have
delivered an initial payment of $2,500 to Bush Ross by June 21,
2011. Beginning on July 1, 2011 and on the first day of each
month thereafter, Marina Park will deliver a payment of $1,000 to
Bush Ross until the balance is satisfied in full.
The Court reserves jurisdiction to enforce the payment of Bush
Ross's allowed administrative expense claim pursuant to this
order.
The Court however denied Bush Ross' alternative motion to convert
the Debtors' Chapter 11 cases to cases under Chapter 7 of the
Bankruptcy Code.
Bush Ross serves as counsel to the Debtors.
About Fisherman's Wharf of Venice, Inc.
Venice, Florida-based Fisherman's Wharf of Venice, Inc., filed for
Chapter 11 protection (Bankr. M.D. Fla. Case No. 10-10694) on
May 4, 2010. H. Bradley Staggs, Esq., at Bush Ross, P. A.
represents the Debtor. The Company disclosed $15,990,500 in
assets and $13,853,990 in liabilities as of the Chapter 11 filing.
The motion to dismiss the Debtors' case filed by creditor Stephen
Witzer is still pending at the Court.
FRANCIS GROUP: Case Summary & 9 Largest Unsecured Creditors
-----------------------------------------------------------
Debtor: Francis Group Holding Corp.
1194 Nostrand Avenue
Brooklyn, NY 11225
Bankruptcy Case No.: 11-45999
Chapter 11 Petition Date: July 11, 2011
Court: U.S. Bankruptcy Court
Eastern District of New York (Brooklyn)
Judge: Jerome Feller
Debtor's Counsel: Gerard M. Karlen, Esq.
420 Lexington Avenue, Suite 300
New York, NY 10170
Tel: (212) 297-6189
E-mail: gmk1059@yahoo.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
A list of the Company's nine largest unsecured creditors filed
together with the petition is available for free at:
http://bankrupt.com/misc/nyeb11-45999.pdf
The petition was signed by Roger Francis, president.
GENBAND HOLDINGS: S&P Puts 'B' Corp. Credit Rating on Watch Neg.
----------------------------------------------------------------
Standard & Poor's Ratings Services placed its 'B' corporate credit
rating on Frisco, Texas-based Genband Holdings Co. on CreditWatch
with negative implications.
"The CreditWatch listing follows tightening liquidity due to the
company's January 2011 acquisition of an Internet protocol
switching company and related integration and capital investment
expenses," said Standard & Poor's credit analyst William Backus,
"coupled with high integration expenses related to its acquisition
of Nortel's carrier VoIP and CVAS business in May 2010."
"Genband's free operating cash flows remain weak per Standard &
Poor's criteria. Additionally, the company's proposed $250
million syndicated term loan to fund the Nortel acquisition was
cancelled, replaced by smaller, alternate funding, providing lower
cash
balances than the initial $195 million we estimated post closing."
"As a result of the foregoing, cash has declined to balances lower
than our base case assumptions. The company's exit from its
transition service agreement with Nortel during the first half of
2011, access to its $25 million asset-based revolving credit
facility, and ongoing support from its equity sponsor partially
mitigate these concerns," S&P said.
In reviewing the rating, Standard & Poor's will focus on the
company's anticipated liquidity and operational prospects.
GOLDENPARK LLC: Defers Lender's Lift Stay Motion Until Oct. 6
-------------------------------------------------------------
Goldenpark, LLC and Urban Commons Sycamore, LLC entered into a
stipulation continuing the hearing on Urban's request for relief
from the automatic stay and for adequate protection payments from
July 7, 2011 at 9:30 a.m. to October 6, 2011 at 9:30 a.m.
Urban filed a motion for relief from the automatic stay with
respect to the Debtor's real property known as the Doubletree
Hotel located at 13111 Sycamore Drive, Norwalk, California,
securing an alleged debt in excess of $18,700,000.
The U.S. Bankruptcy Court for the Central District of California
approved the stipulation on June 28, 2011.
Pursuant to the Court-approved stipulation, on each of July 1,
2011, Aug. 1, 2011, and Sept. 1, 2011, the Debtor will pay to
Urban $110,000 per month as adequate protection payments, with
those payments being applied by Urban as it deems appropriate
under the relevant loan documents.
The Debtor will be in default of the Parties' Stipulation, and
Urban will be granted immediate relief from stay, upon the filing
of a declaration, if, for the time period after execution of the
Parties' Stipulation:
(A) the Debtor does not (i) make any of the required monthly
adequate protection payments to Urban when due, (ii) pay
all real estate taxes with respect to the Real Property
when due, subject to 10-day notice and opportunity to cure,
(iii) pay all transit occupancy tax, also known as "TOT,"
with respect to the hotel that exists and is operated on
the Real Property when due, subject to 10-day notice and
opportunity to cure, (iv) pay the franchisor's franchise
fee with respect to the hotel that exists and is operated
on the Real Property when due, subject to 10-day notice and
opportunity to cure, and (v) maintain and pay all premiums
and payments for normal and customary insurance for the
Real Property and the hotel operated thereon when due,
subject to 10-day notice and opportunity to cure; or
(B) the hotel situated and operated on the Real Property goes
dark or loses its Hilton/Doubletree franchise or "flag."
If Debtor defaults under the Parties' Stipulation, and Urban files
a declaration describing the Debtor's default, the Debtor agrees
that its only ground for objecting to the Urban's declaration and
request for entry of an order granting Urban relief from the
automatic stay will be that the Debtor did not default under this
stipulation and any opposition by the Debtor must be filed within
seven days from the filing of Urban's declaration.
About Goldenpark LLC
Goldenpark LLC operates a 171-room hotel in Norwalk, California.
Pursuant to a franchise agreement with Hilton Worldwide, the hotel
is currently being operated as a Double Tree Hotel.
Goldenpark LLC filed for Chapter 11 bankruptcy (Bankr. C.D. Calif.
Case No. 11-30070) on May 8, 2011, to halt a secured lender's
attempt to place the hotel in the hands of a receiver. Judge
Peter Carroll presides over the case. The Debtor tapped ACT
Solutions as accountant. The Debtor estimated assets and debts at
$10 million to $50 million.
HOMELAND SECURITY: Completes Acquisition of Default for $480,000
----------------------------------------------------------------
Homeland Security Capital Corporation, on July 5, 2011, completed
the acquisition of all of the assets and properties of, and the
assumption of certain liabilities from, Default Servicing, LLC,
pursuant to the previously announced Asset Purchase Agreement the
Company entered into on June 22, 2011, with Default Servicing USA,
Inc., a subsidiary of the Company, Default and DAL Group, LLC, the
sole member of Default.
Default is engaged in the business of providing real estate-owned,
liquidation-related services, including property inspection,
eviction and broker assignment services. The Assets acquired
include, among other things, certain contract rights of Default,
certain office furniture and equipment located at Default's
offices in Kentucky, and other rights and interests of Default,
including goodwill.
In consideration for the Assets, the Company paid at closing an
aggregate purchase price of $480,000 in cash. In addition, the
Company may pay up to an additional $2.9 million in contingent
payments, if any, subject to the achievement of specified net
revenue measurement metrics during each calendar month through
2014.
About Homeland Security
Homeland Security Capital Corporation is an international provider
of specialized technology-based radiological, nuclear,
environmental disaster relief and electronic security solutions to
government and commercial customers.
At Dec. 31, 2009, the Company had total assets of $35,815,519
against total liabilities of $38,018,448 and Warrants Payable --
Series H Preferred Stock of $169,768. Stockholders' deficit was
$2,372,697 at Dec. 31, 2009.
HOPE SPRINGS: Court Dismisses Case Pursuant to U.S. Bank Deal
-------------------------------------------------------------
Judge Basil H. Lorch, III of the U.S. Bankruptcy Court for the
Southern District of Indiana dismissed the Chapter 11 case of Hope
Springs Partners, LLC, subject to the occurrence of a substantial
consummation date pursuant to a settlement agreement among the
Debtor, U.S. Bank and certain guarantors under a loan agreement
between the Debtor and U.S. Bank.
The guarantors are Robert L. Lauth, Jr.; Gregory C. Gurnik;
Lawrence B. Palmer; Michael S. Curless; Flint McNaughton; Thomas
Peck; Lauth Group, Inc. and Lauth Properties, LLC.
The Settlement resolves outstanding issues related to the Debtor,
minimizes guarantee claims against LIP Investment, LLC to the
benefit of the Original Debtors' estates and helps pave the way
for the Debtor to emerge from Chapter 11.
Before the Petition Date, the Debtor's original business plan was
to sell the Real Property in the ordinary course of business at a
profit prior to the Maturity Date. Due to the recent and
unprecedented downturn in the real estate market, however, it is
unlikely that the Debtor would be able to sell the Real Property
commonly known as the Catawba Springs Promenade for a purchase
price that would generate sufficient proceeds to repay the Loan in
full. Against this backdrop, the Debtor entered into negotiations
with U.S. Bank whereby, among other things, the Debtor would
cooperate with U.S. Bank on the ultimate disposition of the Real
Property.
Accordingly, the Settlement provides for the consensual
appointment of a North Carolina state court receiver for the Real
Property and establishes a protocol for a consensual sale of or
consensual foreclosure on the Real Property.
The Settlement further provides for the dismissal of the Debtor's
Chapter 11 Case within five business days following occurrence of
a substantial consummation date. The Debtor will file with the
Court a notice setting forth the occurrence of the Substantial
Consummation Date.
The Settlement also calls for the dismissal of a lawsuit filed by
U.S. Bank against the Guarantors in the Jefferson Circuit Court
Division Three, styled U.S. Bank, National Association v. Lauth
Group, Inc., et al..
The Guarantors will pay to U.S. Bank of $600,000, which has been
funded into an escrow account at the law firm of Baker & Daniels
LLP and is payable to U.S. Bank not later than a day after entry
of the Order.
The Guarantors and U.S. Bank have consented to the jurisdiction of
the Court and thus, the Court will retain jurisdiction to hear and
determine all disputes and controversies under the Settlement and
any party to the Settlement may seek specific enforcement, with
the relief to be heard on an expedited basis and upon not less
than five business days written notice.
However, any court in the State of North Carolina with
jurisdiction over the parties to the Settlement and or the Real
Property will have jurisdiction to enforce the Duty to Cooperate
as well as any matter related to the foreclosure of the Real
Property, the sale of the Real Property or the enforcement by U.S.
Bank of its rights against the Real Property under the Loan
Documents, including entering a judgment against the Debtor.
Carmel, Indiana-based Hope Springs Partners, LLC, filed for
Chapter 11 bankruptcy protection (Bankr. S.D. Ind. Case No.
10-17467) on Nov. 19, 2010, estimating assets at $10 million to
$50 million and debts at $1 million to $10 million. No committee
of unsecured creditors has been appointed in the Chapter 11 case.
Ross M. Kwasteniet, Esq., at Kirkland & Ellis LLP, in Chicago,
represents the Debtor as counsel.
HOWREY LLP: Citibank Objects to Employees' Bonuses
--------------------------------------------------
Dan Rivoli at Bankruptcy Law360 reports that Citibank NA on Monday
objected to Howrey LLP's bid to have a California bankruptcy court
back an employee retention plan that would pay bonuses to nearly
half of its remaining employees, calling the move premature and
one that could be harmful to creditors.
A secured creditor in Howrey's Chapter 11 proceedings, Citibank
asked the bankruptcy judge to deny the firm's motion for approval
of a nearly $500,000 employee incentive and retention plan,
according to Law360.
About Howrey LLP
Three creditors filed an involuntary Chapter 7 petition (Bankr.
N.D. Calif. Case No. 11-31376) on April 11, 2011, against the
remnants of the Washington-based law firm Howrey LLP. The filing
was in San Francisco, where the firm had an office. The firm
previously was known as Howrey & Simon and Howrey Simon Arnold &
White LLP. The firm at one time had more than 700 lawyers in 17
offices. The partners voted to dissolve in March. The firm
specialized in antitrust and intellectual-property matters. The
three creditors filing the involuntary petition together have
$36,600 in claims, according to their petition. The firm can
defeat the petition by showing it is generally paying debts as
they come due. The firm can also consent to bankruptcy and
convert the case in Chapter 11, where the firm's management would
remain in control, at least initially.
HRD CORPORATION: Voluntary Chapter 11 Case Summary
--------------------------------------------------
Debtor: HRD Corporation
dba Marcus Oil & Chemical
P.O. Box 450267
Houston, TX 77245
Bankruptcy Case No.: 11-36020
Chapter 11 Petition Date: July 12, 2011
Court: U.S. Bankruptcy Court
Southern District of Texas (Houston)
Judge: Karen K. Brown
Debtor's Counsel: Barbara Mincey Rogers, Esq.
ROGERS & ANDERSON, PLLC
1415 North Loop West, Suite 1020
Houston, TX 77008
Tel: (713) 868-4411
Fax: (713) 868-4413
E-mail: brogers@ralaw.net
Scheduled Assets: $6,687,684
Scheduled Debts: $104,981,500
The Company did not file a list of creditors together with its
petition.
The petition was signed by Aziz A. Hassan, president.
ICTS INTERNATIONAL: Mayer Hoffman Raises Going Concern Doubt
------------------------------------------------------------
ICTS International, N.V., filed on July 8, 2011, its annual report
on Form 20-F for the fiscal year ended Dec. 31. 2010.
Mayer Hoffman McCann CPAs, in New York, expressed substantial
doubt about ICTS International' ability to continue as a going
concern. The independent auditors noted that the Company has a
history of recurring losses from continuing operations and
negative cash flows from operations, a working capital deficiency
as of Dec. 31, 2010, and is subject to a significant contingency
in connection with its exposure to certain income tax assessments
made against its subsidiary, ICTS USA, Inc., by the Internal
Revenue Service.
The Company reported a net loss of $8.1 million on $98.4 million
of revenue for 2010, compared with net income of $2.9 million on
$95.9 million of revenue for 2009.
At Dec. 31, 2010, the Company's balance sheet showed $24.0 million
in total assets, $49.5 million in total liabilities, and a
stockholders' deficit of $25.5 million.
A copy of the Form 20-F is available at http://is.gd/wJ85oI
Based in Amstelveen, The Netherlands, ICTS International, N.V.,
specializes in the provision of aviation security and other
aviation services. Following the taking of its aviation security
business in the United States by the United States Transportation
Security Administration in 2002, ICTS through its subsidiary
Huntleigh engages primarily in non-security related activities in
the USA.
INWOOD HEIGHTS: Case Summary & 9 Largest Unsecured Creditors
------------------------------------------------------------
Debtor: Inwood Heights Housing Development Fund Corporation
1484 Inwood Avenue
Bronx, NY 10452
Bankruptcy Case No.: 11-13322
Chapter 11 Petition Date: July 11, 2011
Court: U.S. Bankruptcy Court
Southern District of New York (Manhattan)
Judge: Martin Glenn
Debtor's Counsel: Peter F. Anderson, Jr., Esq.
LAW OFFICE OF PETER F. ANDERSON, JR.
370 E. 149th Street, Suite C
Bronx, NY 10455
Tel: (718) 993-2336
Fax: (718) 993-3407
E-mail: pandersonbronx@aol.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
A list of the Company's nine largest unsecured creditors filed
together with the petition is available for free at:
http://bankrupt.com/misc/nysb11-13322.pdf
The petition was signed by Sergio Clark, president.
IRWIN MORTGAGE: Case Summary & 25 Largest Unsecured Creditors
-------------------------------------------------------------
Debtor: Irwin Mortgage Corporation
6375 Riverside Drive, Suite 200
Dublin, OH 43017-5045
Bankruptcy Case No.: 11-57191
Chapter 11 Petition Date: July 8, 2011
Court: United States Bankruptcy Court
Southern District of Ohio (Columbus)
Judge: Charles M. Caldwell
Debtor's Counsel: Matthew T Schaeffer, Esq.
10 West Broad St., Suite 2100
Columbus, OH 43215
Tel: (614) 229-3289
E-mail: matthew.schaeffer@baileycavalieri.com
Estimated Assets: $10,000,001 to $50,000,000
Estimated Debts: $50,000,001 to $100,000,000
The petition was signed by Fred C. Caruso, president.
Debtor's List of 25 Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
------ --------------- ------------
Midfirst Bank Repurchase & $180,650,000
999 NW Grand Blvd. servicing claims
Oklahoma City, OK 73118 from sale agreements
Freedom Mortgage Corp. Repurchase & $12,830,648
907 Pleasant Valley Ave. servicing claims
Suite 3 from sale agreement
Mt. Laurel, NJ 08054
Everbank Repurchase & $8,530,000
8100 Nations Way servicing claims
Jacksonville, FL 32256 from sale agreement
U.S. Dept of Housing & Indemnification $380,688
Urban Development (HUD) claim(s)
52 Corporate Circle
Albany, NY 12203
Calvin Traylor Litigation $342,000
216 Hancock Street
Brooklyn, NY 11216
Solomon McKenzie Litigation $342,000
1066 East 99th St.
Brooklyn, NY 11236
JP Morgan Chase Repurchase & $300,000
(Washington Mutual) servicing claims
10151 Deerwood Park Blvd. from sale agreement
Bldg. 400, Mail Code
FL5-4406
Jacksonville, FL 32256
Lantern Partners, LLC Real Estate Taxes $194,051
Joan Elizabeth Jacobs Litigation $125,000
Khaja Ahmed Litigation $96,344
Shahnaz Ahmed
Carrington Capital Credit for Overage $90,301
Management LLC & for 2009 & 2010
Carrington Mortgage
Holdings, LLC
Globe Industrial Trade Debt $60,000
Supplies, Inc.
Barnes & Thornburg, LLP Trade Debt $50,742
Copper Sands Homeowners Litigation In excess of
Association, Inc. $50,000 per
plaintiff
Leticia Boerboom Litigation In excess of
$50,000
Rick Boerboom Litigation In excess of
$50,000
GE Capital Lease payments $42,600
Duke Energy Utilities $27,000
Fabio Ladino Litigation In excess of
$15,000
Robert Meyer Litigation $14,000
Patricia Terrelongue Litigation $7,515
CT Corporation Trade Debt $4,049
RJE Business Interiors Storage Charges $3,276
Fishers Sewer Utility Utilities $600
Indianapolis Water Utilities $600
ISAACSON STRUCTURAL: Cash Collateral Use Expires
------------------------------------------------
July 5 came and went but the Bankruptcy Court has not issued
another order extending Isaacson Structural Steel, Inc.'s use of
cash collateral.
On June 30, Judge J. Michael Deasy gave the Debtor interim
authority to use cash collateral to pay costs and expenses
incurred for a one-week period, from June 29 to July 5. According
to Judge Deasy, absent further court order extending the cash
collateral use, the Interim Order would "expire on the last day of
the Interim Use Period" or the earliest date on which a
preliminary or final hearing on cash collateral requirements can
be held.
Passumpsic Savings Bank, which purportedly holds claims against
the Debtor totaling roughly $13 million, tried to block the
Debtor's attempt to use cash collateral.
The Interim Order required the Debtor to grant replacement liens
to the secured creditors affected by the ruling. The Interim
Order also directed the Debtor to pay Passumpsic the net proceeds
-- estimated at roughly $30,000 -- from the anticipated $250,000
Bath Iron Works receivable, less the $95,00 that must, and may be
paid to Infra Metals in exchange for a lien release. Passumpsic
was to apply the payment in reduction of outstanding principal
amount owed by the Debtor to the bank.
Passumpsic is represented by:
Gregory A. Moffett, Esq.
Daniel P. Luker, Esq.
PRETI FLAHERTY BELIVEAU & PACHIOS PLLP
P.O. Box 1318
Concord, NH 03302-1318
Tel: (603) 410-1525
Fax: (603) 410-1501
E-mail: gmoffett@preti.com
Isaacson is seeking Bankruptcy Court approval of up to $500,000 in
bridge financing with Cate Street Capital Inc. for working
capital. The loan will bear interest at the rate of 5.25%, and
will mature Sept. 30, 2011. The Debtor needs the money to fund
operations while its so-called Liberty Mutual/Turner and
Middletown School/MasterCraft contracts come on line. The Debtor
intends to assume those contracts, which have a total contract
price in excess of $24 million.
The Debtor said without the financing, it will have to suspend its
business operations and furlough or lay off employees.
About Isaacson Structural Steel
Based in Berlin, New Hampshire, Isaacson Structural Steel, Inc.,
filed for Chapter 11 bankruptcy (Bankr. D. N.H. Case No. 11-12416)
on June 22, 2011. Bankruptcy Judge J. Michael Deasy presides over
the case. William S. Gannon PLLC serves as the Debtor's counsel.
Isaacson Structural Steel estimated both assets and debts of
$10 million to $50 million. The petition was signed by Arnold P.
Hanson, Jr., president.
An official committee of unsecured creditors has been appointed in
Isaacson Structural Steel's case.
A bankruptcy petition was also filed for Isaacson Steel, Inc.
(Bankr. D. N.H. Case No. 11-12415) on June 22, 2011, estimating
assets and debts of $1 million to $10 million. The petition was
signed by Arnold P. Hanson, Jr., president. William S. Gannon,
Esq., also represents Isaacson Steel.
ISAACSON STRUCTURAL: Creditors' Panel Hires Nixon Peabody
---------------------------------------------------------
The official committee of unsecured creditors in the bankruptcy
cases of Isaacson Steel, Inc. and Isaacson Structural Steel, Inc.,
are represented by:
Daniel W. Sklar
Holly Kilibarda, Esq.
NIXON PEABODY LLP
900 Elm Street
Manchester, NH 03101
Tel: (603) 628-4000
Fax: (603) 628-4040
E-mail: dsklar@nixonpeabody.com
hkilibarda@nixonpeabody.com
The July 12 edition of the Troubled Company Reporter ran a story
on the committee's appointment.
About Isaacson Structural Steel
Based in Berlin, New Hampshire, Isaacson Structural Steel, Inc.,
filed for Chapter 11 bankruptcy (Bankr. D. N.H. Case No. 11-12416)
on June 22, 2011. Bankruptcy Judge J. Michael Deasy presides over
the case. William S. Gannon PLLC serves as the Debtor's counsel.
Isaacson Structural Steel estimated both assets and debts of
$10 million to $50 million. The petition was signed by Arnold P.
Hanson, Jr., president.
A bankruptcy petition was also filed for Isaacson Steel, Inc.
(Bankr. D. N.H. Case No. 11-12415) on June 22, 2011, estimating
assets and debts of $1 million to $10 million. The petition was
signed by Arnold P. Hanson, Jr., president. William S. Gannon,
Esq., also represents Isaacson Steel.
J RAY: Voluntary Chapter 11 Case Summary
----------------------------------------
Debtor: J Ray Patterson, Inc.
3201 W. 2nd Street
Chester, PA 19013-1836
Bankruptcy Case No.: 11-15465
Chapter 11 Petition Date: July 11, 2011
Court: U.S. Bankruptcy Court
Eastern District of Pennsylvania (Philadelphia)
Judge: Magdeline D. Coleman
Debtor's Counsel: Michael Kutzer, Esq.
1528 Walnut Street, Suite 401
Philadelphia, PA 19102-3604
Tel: (215) 687-6370
E-mail: mpkutzer1@gmail.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
The Company did not file a list of creditors together with its
petition.
The petition was signed by Samuel Ganow, president.
JACKSON HEWITT: Committee Taps BDO as Financial Advisor
-------------------------------------------------------
BankruptcyData.com reports that Jackson-Hewitt Tax Service's
official committee of unsecured creditors filed with the U.S.
Bankruptcy Court motions to retain BDO Consulting (Contact: David
E. Berliner) as financial advisor at the following hourly rates:
partner/managing director at $475 to $795, director and senior
manager at $375 to $525, manager at $325 to $425, senior at $200
to $350 and staff at $150 to $225 and Duane Morris (Contact:
Michael R. Lastowski) as counsel at hourly rates ranging from $305
to $745.
About Jackson Hewitt
Parsippany, New York-based Jackson Hewitt Tax Service Inc., aka
JHTS Inc., provides computerized preparation services for federal,
state and local individual income tax returns in the United States
through a nationwide network of franchised and company-owned
offices operating under the brand name Jackson Hewitt Tax Service.
The Company has 700 franchisees who collectively operated a total
of 4,846 offices. The Company also operates 1,110 company-owned
offices.
Jackson Hewitt and its affiliates filed for Chapter 11 bankruptcy
(Bankr. D. Del. Lead Case No. 11-11587) on May 24, 2011. Judge
Mary F. Walrath presides over the case. Skadden, Arps, Slate,
Meagher & Flom LLP, serves as the Debtors' bankruptcy counsel.
Alvarez & Marsal North America, LLC, serves as their financial
advisor. Moelis & Company LLC acts as investment banker. The
Garden City Group, Inc., serves as the Debtors' Claims and
Noticing Agent. The Debtors also tapped Deloitte & Touche to
serve as tax advisors and Kekst & Company to serve as
communications advisors.
The Debtors filed a Joint Prepackaged Plan of Reorganization and
Disclosure Statement together with their petitions. Under the
terms of the Plan, Jackson Hewitt's current secured lenders will
receive their pro rata share of a new $100 million term loan and
all of the equity in the reorganized enterprise. The Company also
anticipates entering into a new $115 million revolving credit
facility upon consummation of the Plan. It is anticipated that
upon consummation of the proposed Plan, Jackson Hewitt's new
equity will be privately held. All of the Company's existing
common stock will be cancelled upon Jackson Hewitt's emergence
from bankruptcy.
On May 23, 2011, the Debtors commenced solicitation of votes on
the Plan from the lenders. No other classes of creditors or
stockholders were solicited, as each such class is either being
paid in full or receiving no recovery and hence, is deemed either
to accept or reject the Plan, respectively. The Debtors received
overwhelming acceptances to the Plan from the lenders.
Mark McDermott, Esq., at Skadden Arps, told the Bankruptcy Court
at a May 25 hearing that investor and financier Bayside Capital is
in line to be "a significant majority" owner of Jackson Hewitt.
Bayside Capital has $4.5 billion under management. Bayside is the
largest of 10 secured lenders that Jackson Hewitt owes a total of
$357 million.
Mr. McDermott also told the Court that Jackson Hewitt, worth an
estimated $225 million, does not have sufficient value to cover
the secured debt.
The Court set a July 8 court date to consider confirmation of
Jackson Hewitt's Chapter 11 plan.
JEFFERSON COUNTY: Ala. Seeks to Help County Avoid Bankruptcy
------------------------------------------------------------
American Bankruptcy Institute reports that Alabama wants to make
sure debt-laden Jefferson County does not file for what would be
the largest municipal bankruptcy in history.
About Jefferson County
Jefferson County has its seat in Birmingham, Alabama. It has a
population of 660,000. It ended its 2006 fiscal year with a
$42.6 million general fund balance, according to Standard &
Poor's.
Jefferson County is trying to restructure $3.2 billion in sewer
debt. A bankruptcy by Jefferson County stands to be the largest
municipal bankruptcy in U.S. history. It could beat the record of
$1.7 billion set by Orange County, California in 1994.
In September 2010, Alabama Circuit Court Judge Albert Johnson
named John S. Young Jr. LLC as receiver for the sewer system.
K-V PHARMACEUTICAL: Offers to Exchange $225MM Sr. Secured Notes
---------------------------------------------------------------
K-V Pharmaceutical Company filed with the U.S. Securities and
Exchange Commission a Form S-1 registration statement relating to
the offer to exchange $225,000,000 aggregate principal amount of
12% Senior Secured Notes due 2015 for $225,000,000 registered 12%
Senior Secured Notes due 2015.
The Post-Exchange Securities and the Pre-Exchange Securities are
both guaranteed by all of the Company's present and future
domestic restricted subsidiaries other than MECW, LLC. The terms
of the Post-Exchange Securities are identical in all material
respects to the terms of the Pre-Exchange Securities, except that
the Post-Exchange Securities are registered under the Securities
Act of 1933, as amended, and the transfer restrictions and
registration rights relating to the Pre-Exchange Securities will
not apply to the Post-Exchange Securities. The Post-Exchange
Securities will represent the same debt as the outstanding Pre-
Exchange Securities, and will be issued under the same indenture.
The Company will exchange an equal principal amount of Post-
Exchange Securities for all outstanding Pre-Exchange Securities
that you validly tender and do not validly withdraw before the
exchange offer expires. Holders may withdraw tenders of
outstanding Pre-Exchange Securities at any time prior to the
expiration of the exchange offer.
The exchange of outstanding Pre-Exchange Securities for Post-
Exchange Securities will not be a taxable event for United States
federal income tax purposes.
Neither KV-Pharmaceutical Company nor any of its subsidiaries will
receive any proceeds from the exchange offer.
No public market currently exists for the Pre-Exchange Securities
or the Post-Exchange Securities. The Company does not intend to
apply for listing of the Post-Exchange Securities on any
securities exchange or automated quotation system.
A full-text copy of the prospectus is available for free at:
http://is.gd/2Klc1s
About K-V Pharmaceutical Company
K-V Pharmaceutical Company (NYSE: KVa/KVb) --
http://www.kvpharmaceutical.com/-- is a fully integrated
specialty pharmaceutical company that develops, manufactures,
markets, and acquires technology-distinguished branded and
generic/non-branded prescription pharmaceutical products. The
Company markets its technology distinguished products through
ETHEX Corporation, a subsidiary that competes with branded
products, and Ther-Rx Corporation, the company's branded drug
subsidiary.
The Company reported a net loss of $174.0 million on $27.3 million
of net revenues for fiscal 2011, compared with a net loss of
$283.6 million on $9.1 million of net revenues for fiscal 2010.
The loss from continuing operations was $156.2 million and
$285.6 million in fiscal 2011 and fiscal 2010, respectively.
The Company's balance sheet at March 31, 2011, showed
$564.7 million in total assets, $938.7 million in total
liabilities, and a stockholders' deficit of $374.0 million.
BDO USA, LLP, in Chicago, Illinois, expressed substantial doubt
about the Company's ability to continue as a going concern. The
independent auditors noted that the Company has suspended the
shipment of all but one of the products manufactured by the
Company and must comply with a consent decree with the Food and
Drug Administration before approved products can be reintroduced
to the market.
LA JOLLA: Has 45.79 Million Outstanding Common Shares
-----------------------------------------------------
La Jolla Pharmaceutical Company reported that since July 8, 2011,
it had converted approximately 67 shares of Series C-1 1
Convertible Preferred Stock into a combined total of 11,172,330
shares of common stock. Following these conversions, the Company
had a total of 45,794,149 shares of common stock issued and
outstanding as of July 11, 2011.
About La Jolla Pharmaceutical
San Diego, Calif.-based La Jolla Pharmaceutical Company (OTC BB:
LJPC) -- http://www.ljpc.com/-- is a biopharmaceutical company
that has historically focused on the development and testing of
Riquent as a treatment for Lupus nephritis.
The Company's balance sheet at March 31, 2011, showed
$6.74 million in total assets, $12.58 million in total
liabilities, all current, $5.57 million in Series C-1 1 redeemable
convertible preferred stock, and a $11.41 million total
stockholders' deficit.
The Company reported a net loss of $3.76 million on $0 of revenue
from collaboration agreement for the year ended Dec. 31, 2010,
compared with a net loss of $8.63 million on $8.12 million of
revenue from collaboration agreement during the prior year.
As reported by the TCR on April 18, 2011, BDO USA, LLP, in San
Diego, Calif., expressed substantial doubt about the Company's
ability to continue as a going concern, following the 2010
financial results. The independent auditors noted that the
Company has suffered recurring losses from operations, an
accumulated deficit of $428 million as of Dec. 31, 2010 and has no
current source of revenues.
LANDAMERICA FIN'L: 4th Circuit Says Severance Claims Have Priority
------------------------------------------------------------------
Chapter11Cases.com says that in an opinion dated July 6, 2011
(captioned Bruce H. Matson, Trustee of the LandAmerica Financial
Group, Incorporated Liquidated [sic] Trust vs. Alarcon et al.),
the Fourth Circuit of Appeals determined that Bankruptcy Judge
Kevin R. Huennekens of the United States Bankruptcy Court for the
Eastern District of Virginia was correct in finding that the
claims of 125 former employees of LandAmerica Financial Group for
unpaid benefits due pursuant to a Severance Benefits Plan were
earned on the date that the employees had their employment
terminated and, therefore, the entire amount of the severance
benefits were entitled to priority pursuant to section 507(a)(4)
of the Bankruptcy Code (up to the statutory cap).
The 125 employees whose claims were at issue in the present case
were all terminated by LandAmerica between August and November
2008 (i.e., within the last 180 days before LandAmerica filed its
bankruptcy petition) and all other conditions for the employees to
become participants in the Severance Benefits Plan were met.
LandAmerica did not, however, pay any severance benefits owing
under the plan to any of the employees prior to the bankruptcy
filing (or after).
After the chapter 11 filing, the employees filed proofs of claim
asserting claims for their severance plan benefits and that those
amounts were entitled to priority pursuant to section 507(a)(4) of
the Bankruptcy Code.
The Trustee of the LandAmerica Financial Group, Inc. Liquidation
Trust did not object to the amounts of the employees' claims, but
did object to the assertion that the claims were entitled to
priority for the full amount. Rather, the Trustee argued that
"the claimants 'earned' severance compensation over the entire
course of their employment and that, therefore, only the portion
of those claims 'earned' within the 180-day period
before LandAmerica filed for bankruptcy (the pre-petition period)
was entitled to priority treatment under 11 U.S.C. Section
507(a)(4)."
The bankruptcy court rejected the Trustee's position and held that
the entire severance benefit amount was "earned" when the employee
was terminated and became eligible to participate in the plan.
About LandAmerica Financial
LandAmerica Financial Group, Inc., provided real estate
transaction services with offices nationwide and a vast network of
active agents. LandAmerica Financial Group and its affiliate
LandAmerica 1031 Exchange Services, Inc. filed for Chapter 11
protection Nov. 26, 2008 (Bankr. E.D. Va. Lead Case No. 08-35994).
Attorneys at Willkie Farr & Gallagher LLP and McGuireWoods LLP
served as co-counsel. Zolfo Cooper served as the restructuring
advisor. Epiq Bankruptcy Solutions served as claims and notice
agent.
Attorneys at Akin Gump Strauss Hauer & Feld LLP and Tavenner &
Beran, PLC, served as counsel to the Creditors Committee of 1031
Exchange. Bingham McCutchen LLP and LeClair Ryan served as
counsel to the Creditors Committee of LFG.
In its bankruptcy petition, LFG reported total assets of
$3,325,100,000, and total debts of $2,839,800,000 as of
Sept. 30, 2008.
On March 6, 2009, affiliate LandAmerica Assessment Corporation,
aka National Assessment Corporation, filed its own Chapter 11
petition. Affiliate LandAmerica Title Company filed for for
Chapter 11 relief on March 27, 2009. LandAmerica Credit
Services, Inc., filed for Chapter 11 in July 2009.
LandAmerica filed a Joint Plan of Liquidation on Sept. 9, 2009.
The Bankruptcy Court confirmed that plan on Nov. 23, 2009, and the
plan took effect on Dec. 7, 2009.
LEHMAN BROTHERS: Has Deal to Hold in Abeyance Creditors' Plan
-------------------------------------------------------------
Lehman Brothers Holdings Inc. asks Judge James Peck of the U.S.
Bankruptcy Court for the Southern District of New York to approve
an agreement to hold in abeyance the prosecution of the rival
Chapter 11 plans of reorganization proposed by its creditors.
The move came after LBHI filed late last month a third version of
its Chapter 11 plan, which would enable the company and its
affiliated debtors to pay an estimated $65 billion to their
creditors.
LBHI's proposed plan has the support of its largest creditors
holding more than $100 billion in claims. Consequently,
"substantially all" of the proponents of competing plans
including the ad hoc group of Lehman Brothers creditors and a
group of claimants led by Goldman Sachs Bank USA have agreed to
hold in abeyance the prosecution of those plans, according to
court filings.
Thirty of the largest Lehman creditors have already executed plan
support agreements, which require court approval of the proposed
deal by July 29, 2011.
Under the proposed deal, LBHI and the plan proponents agreed to
hold in abeyance the prosecution of the competing plans and to
stay ongoing discovery previously authorized by the Court in
connection with the confirmation of LBHI's plan.
The deal is formalized in a 19-page stipulation, a copy of which
is available without charge at:
http://bankrupt.com/misc/LBHI_StipPlanAbeyance.pdf
LBHI's lawyer, Harvey Miller, Esq., at Weil Gotshal & Manges LLP,
in New York, says the agreement, if approved, would suspend
"potential extensive and costly litigation over competing plans
and manifold issues."
"It inures to the benefit of all economic stakeholders. If the
[Lehman] plan is confirmed the suspended potential litigation
will expire," Mr. Miller says in court papers.
Judge James Peck will consider approval of the proposed agreement
at the July 20, 2011 hearing. The deadline for filing objections
is July 15, 2011.
Debtors' Plan
Early this month, Lehman Brothers Holdings Inc. and its 22
affiliated Chapter 11 debtors disclosed that creditors holding
claims in excess of $100 billion are in support of the Second
Amended Plan and Disclosure Statement. Thirty institutions and
certain of their affiliates have executed Plan Support Agreements
(PSAs).
Those signing PSAs include substantially all of the proponents of
the two alternative plans that were proposed earlier this year.
The proponents of the alternative plans have agreed to hold those
plans in abeyance while Lehman moves forward toward approval of
its Amended Disclosure Statement and confirmation of its Amended
Plan.
Bryan Marsal, LBHI's Chief Executive Officer, said: "This Amended
Plan is based on intensive discussions, analysis and input from
many parties. It provides for a global settlement with creditor
groups and will avoid the costly, uncertain and protracted
litigation that would undoubtedly follow in the absence of this
compromise solution. The Plan provides a fair and reasonable
outcome and will accelerate distributions to creditors."
Marsal continued: "Our goal from the outset has been a fair
economic compromise that expedites administration of these cases
and provides the best outcome for creditors. This Plan achieves
that objective. The support of this Amended Plan by creditors who
represent more than $100 billion in claims filed is a major step
forward. The Official Committee of Unsecured Creditors (UCC) and
various creditor representatives have worked with us in a
constructive manner to achieve this balanced compromise."
In addition, Lehman has entered into settlement agreements based
on the derivatives claims settlement framework that was proposed
on May 31, 2011 to thirteen institutions with seven of the
thirteen largest banks that have asserted derivative claims.
Lehman expects to enter into a settlement agreement with an
additional bank shortly thereby resolving $9.6 billion in
derivative claims and corresponding guarantee claims for $6.2
billion. Daniel Ehrmann, Lehman's co-head of Derivatives, stated:
"Our objective has been very clear: to settle derivatives claims
with our big bank counterparties in a fair, consistent and
efficient manner. The reconciliation, settlement and allowance of
claims of these large financial institutions is a significant
achievement and will avoid costly and extensive litigation that
would have otherwise resulted. We hope that the remaining large
banks with derivatives claims will agree to the settlement
framework and avoid having the Debtors vigorously litigate their
claims."
About Lehman Brothers
Lehman Brothers Holdings Inc. -- http://www.lehman.com/-- was the
fourth largest investment bank in the United States. For more
than 150 years, Lehman Brothers has been a leader in the global
financial markets by serving the financial needs of corporations,
governmental units, institutional clients and individuals
worldwide.
Lehman Brothers filed for Chapter 11 bankruptcy Sept. 15, 2008
(Bankr. S.D.N.Y. Case No. 08-13555). Lehman's bankruptcy petition
disclosed US$639 billion in assets and US$613 billion in debts,
effectively making the firm's bankruptcy filing the largest in
U.S. history. Several other affiliates followed thereafter.
Additional units, Merit LLC, LB Somerset LLC and LB Preferred
Somerset LLC, sought for bankruptcy protection in December 2009 or
more than a year after LBHI and its other affiliates filed their
bankruptcy cases.
The Debtors' bankruptcy cases are handled by Judge James M. Peck.
Harvey R. Miller, Esq., Richard P. Krasnow, Esq., Lori R. Fife,
Esq., Shai Y. Waisman, Esq., and Jacqueline Marcus, Esq., at Weil,
Gotshal & Manges, LLP, in New York, represent Lehman. Epiq
Bankruptcy Solutions serves as claims and noticing agent.
Dennis F. Dunne, Esq., Evan Fleck, Esq., and Dennis O'Donnell,
Esq., at Milbank, Tweed, Hadley & McCloy LLP, in New York, serve
as counsel to the Official Committee of Unsecured Creditors.
Houlihan Lokey Howard & Zukin Capital, Inc., is the Committee's
investment banker.
On Sept. 19, 2008, the Honorable Gerard E. Lynch of the U.S.
District Court for the Southern District of New York, entered an
order commencing liquidation of Lehman Brothers, Inc., pursuant to
the provisions of the Securities Investor Protection Act (Case No.
08-CIV-8119 (GEL)). James W. Giddens has been appointed as
trustee for the SIPA liquidation of the business of LBI.
The Bankruptcy Court has approved Barclays Bank Plc's purchase
of Lehman Brothers' North American investment banking and
capital markets operations and supporting infrastructure for
US$1.75 billion. Nomura Holdings Inc., the largest brokerage
house in Japan, purchased LBHI's operations in Europe for US$2
plus the retention of most of employees. Nomura also bought
Lehman's operations in the Asia Pacific for US$225 million.
International Operations Collapse
Lehman Brothers International (Europe), the principal UK trading
company in the Lehman group, was placed into administration,
together with Lehman Brothers Ltd, LB Holdings PLC and LB UK RE
Holdings Ltd. Tony Lomas, Steven Pearson, Dan Schwarzmann and
Mike Jervis, partners at PricewaterhouseCoopers LLP, have been
appointed as joint administrators to Lehman Brothers International
(Europe) on Sept. 15, 2008. The joint administrators have
been appointed to wind down the business.
Lehman Brothers Japan Inc. and Lehman Brothers Holdings Japan Inc.
filed for bankruptcy in the Tokyo District Court on Sept. 16.
Lehman Brothers Japan Inc. reported about JPY3.4 trillion
(US$33 billion) in liabilities in its petition.
Bankruptcy Creditors' Service, Inc., publishes Lehman Brothers
Bankruptcy News. The newsletter tracks the Chapter 11 proceeding
undertaken by Lehman Brothers Holdings, Inc., and other insolvency
and bankruptcy proceedings undertaken by its affiliates.
(http://bankrupt.com/newsstand/or 215/945-7000)
LEHMAN BROTHERS: LBI Trustee & Barclays Has Deal on Bond Posting
----------------------------------------------------------------
Barclays Capital Inc. and Lehman Brothers Inc.'s trustee ask
Judge James Peck to approve an agreement resolving the conditions
of stay of their payment obligations under his prior orders
governing the resolution of their dispute concerning the so-
called margin assets and clearance box assets.
The orders provide for judgments against Barclays Capital with
respect to the margin assets and against the trustee with respect
to the clearance box assets. The "margin assets judgment" is in
the sum of $2.054 billion while the "clearance box assets
judgment" is in the sum of $1.1 billion.
William Maguire, Esq., at Hughes Hubbard & Reed LLP, in New York,
says that based on their inquiries to bonding agencies, there may
not be sufficient capacity in the market for supersedeas bonds to
obtain a bond in the amount of either judgment.
Mr. Maguire points out that even if such capacity existed, it
appears that the premium cost for any such bond would be in the
range of 1% or $10 million on a bond in the sum of $1 billion.
He further says that the premium expense would be a taxable cost,
which either party could recover in case it succeeded on appeal.
"Barclays Capital and the trustee have entered into an agreement
to minimize the risk that any final, non-appealable judgment will
not be satisfied," Mr. Maguire says in court papers.
Under the agreement, Barclays Bank PLC will assume the obligation
to pay the margin assets judgment against Barclays Capital. Any
subsequent judgments obtained by the trustee against the bank or
Barclays Capital with respect to those assets, and upon a one
notch downgrade in the bank's long-term credit rating, Barclays
Bank will deposit assets in a pre-established collateral account
that are sufficient to secure the net judgment amount owed by
Barclays Capital to the trustee.
The agreement does not require the trustee to post a bond or
security for the clearance box assets judgment amount he owes to
Barclays Capital. Further, the trustee agrees to seek recovery
of any final, non-appealable margin assets judgment from Barclays
Bank and, if necessary, a collateral account established by the
bank.
A full-text copy of the agreement is available without charge at
http://bankrupt.com/misc/LBHI_BarclaysTrusteeDeal.pdf
Judge Peck will consider approval of the agreement at the July
27, 2011 hearing. The deadline for filing objections is July 20,
2011.
About Lehman Brothers
Lehman Brothers Holdings Inc. -- http://www.lehman.com/-- was the
fourth largest investment bank in the United States. For more
than 150 years, Lehman Brothers has been a leader in the global
financial markets by serving the financial needs of corporations,
governmental units, institutional clients and individuals
worldwide.
Lehman Brothers filed for Chapter 11 bankruptcy Sept. 15, 2008
(Bankr. S.D.N.Y. Case No. 08-13555). Lehman's bankruptcy petition
disclosed US$639 billion in assets and US$613 billion in debts,
effectively making the firm's bankruptcy filing the largest in
U.S. history. Several other affiliates followed thereafter.
Additional units, Merit LLC, LB Somerset LLC and LB Preferred
Somerset LLC, sought for bankruptcy protection in December 2009 or
more than a year after LBHI and its other affiliates filed their
bankruptcy cases.
The Debtors' bankruptcy cases are handled by Judge James M. Peck.
Harvey R. Miller, Esq., Richard P. Krasnow, Esq., Lori R. Fife,
Esq., Shai Y. Waisman, Esq., and Jacqueline Marcus, Esq., at Weil,
Gotshal & Manges, LLP, in New York, represent Lehman. Epiq
Bankruptcy Solutions serves as claims and noticing agent.
Dennis F. Dunne, Esq., Evan Fleck, Esq., and Dennis O'Donnell,
Esq., at Milbank, Tweed, Hadley & McCloy LLP, in New York, serve
as counsel to the Official Committee of Unsecured Creditors.
Houlihan Lokey Howard & Zukin Capital, Inc., is the Committee's
investment banker.
On Sept. 19, 2008, the Honorable Gerard E. Lynch of the U.S.
District Court for the Southern District of New York, entered an
order commencing liquidation of Lehman Brothers, Inc., pursuant to
the provisions of the Securities Investor Protection Act (Case No.
08-CIV-8119 (GEL)). James W. Giddens has been appointed as
trustee for the SIPA liquidation of the business of LBI.
The Bankruptcy Court has approved Barclays Bank Plc's purchase
of Lehman Brothers' North American investment banking and
capital markets operations and supporting infrastructure for
US$1.75 billion. Nomura Holdings Inc., the largest brokerage
house in Japan, purchased LBHI's operations in Europe for US$2
plus the retention of most of employees. Nomura also bought
Lehman's operations in the Asia Pacific for US$225 million.
International Operations Collapse
Lehman Brothers International (Europe), the principal UK trading
company in the Lehman group, was placed into administration,
together with Lehman Brothers Ltd, LB Holdings PLC and LB UK RE
Holdings Ltd. Tony Lomas, Steven Pearson, Dan Schwarzmann and
Mike Jervis, partners at PricewaterhouseCoopers LLP, have been
appointed as joint administrators to Lehman Brothers International
(Europe) on Sept. 15, 2008. The joint administrators have
been appointed to wind down the business.
Lehman Brothers Japan Inc. and Lehman Brothers Holdings Japan Inc.
filed for bankruptcy in the Tokyo District Court on Sept. 16.
Lehman Brothers Japan Inc. reported about JPY3.4 trillion
(US$33 billion) in liabilities in its petition.
Bankruptcy Creditors' Service, Inc., publishes Lehman Brothers
Bankruptcy News. The newsletter tracks the Chapter 11 proceeding
undertaken by Lehman Brothers Holdings, Inc., and other insolvency
and bankruptcy proceedings undertaken by its affiliates.
(http://bankrupt.com/newsstand/or 215/945-7000)
LEHMAN BROTHERS: Proposes to File Amended Plan for SunCal Debtors
-----------------------------------------------------------------
Lehman Brothers Holdings Inc. and its debtor affiliates seek
authority from the United States Bankruptcy Court for the
Southern District of New York for Lehman Commercial Paper Inc.
to:
(a) enter into, along with Lehman ALI, Inc. and certain of
LCPI's other non-debtor affiliates, a second amended
joint Chapter 11 plan being jointly proposed with the
appointed trustee of the SunCal Involuntary Debtors in
their Chapter 11 cases of eight of the subsidiaries and
affiliates of SunCal Acquisitions, Inc.;
(b) enter into the second amended joint Chapter 11 plan being
jointly proposed with Lehman ALI in the Chapter 11 cases
of 11 of the SunCal Voluntary Debtors; and
(c) directly or with LBHI through any of their debtor or
non-debtor affiliates or subsidiaries, to participate in
any auction of the SunCal Debtors' assets.
The SunCal Parties' Chapter 11 cases are being jointly
administered in the United States Bankruptcy Court for the
Central District of California.
Prior to the Lehman Debtors' Petition Date, LCPI and three non-
Debtor Lehman affiliates, Lehman ALI, Inc., OVC Holdings LLC and
Northlake Holdings LLC, provided approximately $1.8 billion in
senior secured financing to certain direct or indirect
subsidiaries and affiliates of SCC Acquisitions, Inc., pursuant
to various separate loan agreements. The Financing was used by
the subsidiaries to acquire and develop certain real estate
projects located in California. Certain of the SCC subsidiaries
became involuntary debtors or voluntary debtors in the California
Bankruptcy Court. Steven Speier was appointed as SunCal Trustee
to administer the cases.
The Lehman Creditors filed proofs of claim as to eight SunCal
Involuntary Debtors -- the "TD Plan Debtors" -- in the SunCal
Cases for more than $1.1 billion in respect of that portion of
the Financing provided to the TD Plan Debtors. The aggregate
value of the TD Plan Debtors' assets is significantly less than
the aggregate amount of the claims.
Two of the Lehman Creditors, LCPI and Lehman ALI -- the Lehman
Lenders -- filed proofs of claim in the SunCal Voluntary Debtors'
bankruptcy cases in respect of that portion of the Financing
provided to the SunCal Voluntary Debtors. The portion of the
Voluntary Debtors' Financing owed, collectively, by certain
SunCal Voluntary Debtors -- the "VD Plan Debtors" -- is in excess
of $700 million. The aggregate value of the VD Plan Debtors'
assets is significantly less than the aggregate amount of the
claims.
In September 2009, the Lehman Creditors filed a non-consensual
Chapter 11 plan of reorganization and accompanying disclosure
statement for 24 of the 26 SunCal Debtors to increase the
prospect of recovery of the Financing provided to the SunCal
Debtors. In the summer of 2010, the Lehman Creditors and the
SunCal Trustee reached agreement on a plan for the TD Debtors.
On September 30, 2010, the Lehman Creditors and the SunCal
Trustee filed their joint Chapter 11 plan and accompanying
disclosure statement in the applicable SunCal Involuntary
Debtors' Cases, and the Lehman Lenders filed a joint Chapter 11
plan and accompanying disclosure statement for the VD Plan
Debtors and SunCal Emerald, which was later amended. The Lehman
Creditors and the SunCal Trustee also amended the Initial
Lehman/Trustee TD Plan.
Second Amended Lehman/Trustee TD Plan
The Lehman Creditors determined, as of June 1, 2011, that their
initial good faith estimation of the funding needed to consummate
the Initial TD Plan, and later the First Amended Lehman/Trustee
TD Plan, of $45 million plus the amount of administrative loans
from the Lehman Creditors made August 10, 2010, and $20 million
for payment to certain unsecured, non-priority claims, would be
exceeded. Hence, the Lehman Creditors and the SunCal Trustee
filed a second amended joint Chapter 11 plan for the TD Plan
Debtors, in which the thresholds are increased to $55 million and
$23 million, each approximately 15% over the actual, current
estimates.
Second Amended Lehman VD Plan
On June 20, 2011, the Lehman Lenders filed a second amended joint
Chapter 11 plan for the VD Plan Debtors. If the SunCal VD Plan
is confirmed by the California Bankruptcy Court, LCPI may be
required to and LCPI and LBHI may, among other things: (i) pay
allowed administrative, priority and certain secured claims of
the VD Plan Debtors, (ii) pay all or a portion, as provided in
the plan, of allowed non-priority, unsecured claims, (iii) pay
plan confirmation expenses in the SunCal Voluntary Debtors' Cases
up to a specified maximum; and (iv) arrange for reimbursements
due under certain settlement agreements with certain settling
surety bond issuers.
In exchange for providing the necessary plan funding, the Lehman
Lenders will receive conveyance, directly or through any other
persons designated by the Lehman Lenders, of the SunCal
Properties and other assets owned by the VD Plan Debtors. The
Second Amended Lehman VD Plan could require LCPI to use certain
assets of their estates outside the ordinary course of its
business.
The Debtors are also seeking approval of the role and
obligations, including funding obligations, of LCPI under the
Second Amended Lehman/Trustee TD Plan and the Second Amended
Lehman VD Plan, and any documents or agreements contemplated to
be entered into by LCPI in connection with the confirmation or
effectiveness of the Lehman Plans. The Debtors further seek
authority for LBHI to provide funds to the Lehman Creditors for
all or a portion of the Lehman Plan Funding.
Sale of SunCal Properties
On June 20, 2011, the SunCal Voluntary Debtors and SunCal
Acquisitions filed six plans of reorganization for the SunCal
Debtors seeking, among other things, to sell, at a public
auction, all of the SunCal Properties and other assets of the
SunCal Debtors. The SunCal Plans attempt to prohibit LCPI and
its affiliates from exercising their rights to credit bid at any
auction of the SunCal Properties. To the extent that any of the
SunCal Plans are confirmed, the applicable SunCal Properties
implicated under the SunCal Plan, which comprise the collateral
of the Lehman Creditors in which LBHI and LCPI have a direct or
indirect interest, may be sold at prices that do not reflect the
true market value of the properties and at prices that will not
enable the applicable Lehman Creditors to maximize their recovery
with respect to the Financing, Alfredo Perez, Esq., at Weil
Gotshal & Manges LLP, in Houston, Texas, contends.
Consequently, to protect their interests, LBHI and LCPI seek the
New York Bankruptcy Court's authority to fully participate in and
to cash bid at any auction of the SunCal Properties, whether
conducted pursuant to a SunCal Plan or otherwise, either directly
or indirectly through any of their debtor or non-debtor
subsidiaries or affiliates.
Failure to fully participate in any sale will be detrimental to
the Lehman Creditors' and, thus, LBHI's and LCPI's, ability to
maximize the value of their investments in the SunCal Properties,
Mr. Perez argues. He asserts that LBHI and LCPI should be
permitted to fully participate in any auction or sale of the
SunCal Properties and cash bid up to an amount, which is approved
by the Debtors' Board of Directors and the consent of the
Official Committee of Unsecured Creditors.
Copies of the Second Amended Lehman VD Plan and the Second
Amended Lehman/Trustee TD Plan are available for free at:
* http://bankrupt.com/misc/LBHI_SunCal_2ndTDPlan.pdf
* http://bankrupt.com/misc/LBHI_SunCal_2ndVDPlan.pdf
The New York Court will convene a hearing on July 20, 2011.
Objections are due on July 13.
About Lehman Brothers
Lehman Brothers Holdings Inc. -- http://www.lehman.com/-- was the
fourth largest investment bank in the United States. For more
than 150 years, Lehman Brothers has been a leader in the global
financial markets by serving the financial needs of corporations,
governmental units, institutional clients and individuals
worldwide.
Lehman Brothers filed for Chapter 11 bankruptcy Sept. 15, 2008
(Bankr. S.D.N.Y. Case No. 08-13555). Lehman's bankruptcy petition
disclosed US$639 billion in assets and US$613 billion in debts,
effectively making the firm's bankruptcy filing the largest in
U.S. history. Several other affiliates followed thereafter.
Additional units, Merit LLC, LB Somerset LLC and LB Preferred
Somerset LLC, sought for bankruptcy protection in December 2009 or
more than a year after LBHI and its other affiliates filed their
bankruptcy cases.
The Debtors' bankruptcy cases are handled by Judge James M. Peck.
Harvey R. Miller, Esq., Richard P. Krasnow, Esq., Lori R. Fife,
Esq., Shai Y. Waisman, Esq., and Jacqueline Marcus, Esq., at Weil,
Gotshal & Manges, LLP, in New York, represent Lehman. Epiq
Bankruptcy Solutions serves as claims and noticing agent.
Dennis F. Dunne, Esq., Evan Fleck, Esq., and Dennis O'Donnell,
Esq., at Milbank, Tweed, Hadley & McCloy LLP, in New York, serve
as counsel to the Official Committee of Unsecured Creditors.
Houlihan Lokey Howard & Zukin Capital, Inc., is the Committee's
investment banker.
On Sept. 19, 2008, the Honorable Gerard E. Lynch of the U.S.
District Court for the Southern District of New York, entered an
order commencing liquidation of Lehman Brothers, Inc., pursuant to
the provisions of the Securities Investor Protection Act (Case No.
08-CIV-8119 (GEL)). James W. Giddens has been appointed as
trustee for the SIPA liquidation of the business of LBI.
The Bankruptcy Court has approved Barclays Bank Plc's purchase
of Lehman Brothers' North American investment banking and
capital markets operations and supporting infrastructure for
US$1.75 billion. Nomura Holdings Inc., the largest brokerage
house in Japan, purchased LBHI's operations in Europe for US$2
plus the retention of most of employees. Nomura also bought
Lehman's operations in the Asia Pacific for US$225 million.
International Operations Collapse
Lehman Brothers International (Europe), the principal UK trading
company in the Lehman group, was placed into administration,
together with Lehman Brothers Ltd, LB Holdings PLC and LB UK RE
Holdings Ltd. Tony Lomas, Steven Pearson, Dan Schwarzmann and
Mike Jervis, partners at PricewaterhouseCoopers LLP, have been
appointed as joint administrators to Lehman Brothers International
(Europe) on Sept. 15, 2008. The joint administrators have
been appointed to wind down the business.
Lehman Brothers Japan Inc. and Lehman Brothers Holdings Japan Inc.
filed for bankruptcy in the Tokyo District Court on Sept. 16.
Lehman Brothers Japan Inc. reported about JPY3.4 trillion
(US$33 billion) in liabilities in its petition.
Bankruptcy Creditors' Service, Inc., publishes Lehman Brothers
Bankruptcy News. The newsletter tracks the Chapter 11 proceeding
undertaken by Lehman Brothers Holdings, Inc., and other insolvency
and bankruptcy proceedings undertaken by its affiliates.
(http://bankrupt.com/newsstand/or 215/945-7000)
LEHMAN BROTHERS: Proposes to Expand Scope of Directors' Cost Fund
-----------------------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of New York
authorized Lehman Brothers Holdings Inc. and its affiliates on
December 3, 2008, to pay the legal costs incurred by certain
former employees in connection with investigations, arbitrations
and other legal actions that were not covered by an applicable
insurance policy, or where an insurer asserted non-coverage, up to
an aggregate cap of $3 million. The Legal Costs Fund was
subsequently used to primarily pay the costs associated with
certain arbitration proceedings relating to auction rate
securities.
Although the Debtors' insurers of director and officer insurance
policies had initially denied coverage with respect to the
Arbitration Proceedings, the insurers eventually recognized the
Arbitration Proceedings as within the insurance coverage and the
Debtors were, therefore, reimbursed for funds disbursed in
connection with defending those proceedings. Consequently, the
Legal Costs Fund currently has a balance of approximately $3
million.
Richard Krasnow, Esq., at Weil Gotshal & Manges LLP, in New York,
tells the Court that there currently is a dispute with insurers
that issued certain of the Debtors' policies as to whether
particular claims fall within the 2007-2008 policy year or the
2008-2009 policy year. He notes that if the pending dispute is
not satisfactorily resolved, the Debtors and one or more former
employees may need to commence an action seeking a determination
of insurance policy coverage. The legal costs of that action
would not be covered by the insurance policies and also is not
currently within the scope of the authorized use of the Legal
Costs Fund, even though the objective of any action would, if
successful, potentially reduce the use of the Legal Costs Fund to
pay defense costs in connection with underlying arbitrations and
actions.
Accordingly, the Debtors seek to expand the scope of the matters
for which former employees may seek reimbursement of their legal
costs from the Legal Costs Fund to include potential and actual
litigation costs with insurers regarding coverage disputes. The
Legal Costs Fund would, however, still be subject to the $3
million cap and the conditions set forth in the Legal Costs Fund
Order.
Current Director Costs Fund
In May 2009, and again in June 2010, the Debtors' purchased two
separate one year tail extensions of their 2008-2009 policy.
Rather than incur costs in purchasing additional tail extension,
estimated at $12 million, the Debtors provided up to $2 million
for their current directors to enable payment of only legal
costs, and not payment of settlements or judgments, associated
with claims that are (i) asserted against them prior to the
confirmation and effective date of a Chapter 11 plan for Lehman
Brothers Holdings Inc. becoming effective in these Chapter 11
cases, and (ii) based upon assertions, first made from May 17,
2011, to LBHI's emergence from Chapter 11, of improper acts or
omissions by Current Directors from the "Pending and Prior
Litigation Date", as defined in the 2008-09 D&O Policies, to May
16, 2009, in their capacity as directors of LBHI.
The Debtors, therefore, seek the Court's authority to implement
the Current Directors' Costs Fund.
The Official Committee of Unsecured Creditors supports both the
proposed expansion of the scope of the Legal Costs Fund, as well
as the implementation of the Current Directors' Costs Fund.
The Court will convene a hearing on July 20, 2011, to consider
the request. Objections are due on July 13.
About Lehman Brothers
Lehman Brothers Holdings Inc. -- http://www.lehman.com/-- was the
fourth largest investment bank in the United States. For more
than 150 years, Lehman Brothers has been a leader in the global
financial markets by serving the financial needs of corporations,
governmental units, institutional clients and individuals
worldwide.
Lehman Brothers filed for Chapter 11 bankruptcy Sept. 15, 2008
(Bankr. S.D.N.Y. Case No. 08-13555). Lehman's bankruptcy petition
disclosed US$639 billion in assets and US$613 billion in debts,
effectively making the firm's bankruptcy filing the largest in
U.S. history. Several other affiliates followed thereafter.
Additional units, Merit LLC, LB Somerset LLC and LB Preferred
Somerset LLC, sought for bankruptcy protection in December 2009 or
more than a year after LBHI and its other affiliates filed their
bankruptcy cases.
The Debtors' bankruptcy cases are handled by Judge James M. Peck.
Harvey R. Miller, Esq., Richard P. Krasnow, Esq., Lori R. Fife,
Esq., Shai Y. Waisman, Esq., and Jacqueline Marcus, Esq., at Weil,
Gotshal & Manges, LLP, in New York, represent Lehman. Epiq
Bankruptcy Solutions serves as claims and noticing agent.
Dennis F. Dunne, Esq., Evan Fleck, Esq., and Dennis O'Donnell,
Esq., at Milbank, Tweed, Hadley & McCloy LLP, in New York, serve
as counsel to the Official Committee of Unsecured Creditors.
Houlihan Lokey Howard & Zukin Capital, Inc., is the Committee's
investment banker.
On Sept. 19, 2008, the Honorable Gerard E. Lynch of the U.S.
District Court for the Southern District of New York, entered an
order commencing liquidation of Lehman Brothers, Inc., pursuant to
the provisions of the Securities Investor Protection Act (Case No.
08-CIV-8119 (GEL)). James W. Giddens has been appointed as
trustee for the SIPA liquidation of the business of LBI.
The Bankruptcy Court has approved Barclays Bank Plc's purchase
of Lehman Brothers' North American investment banking and
capital markets operations and supporting infrastructure for
US$1.75 billion. Nomura Holdings Inc., the largest brokerage
house in Japan, purchased LBHI's operations in Europe for US$2
plus the retention of most of employees. Nomura also bought
Lehman's operations in the Asia Pacific for US$225 million.
International Operations Collapse
Lehman Brothers International (Europe), the principal UK trading
company in the Lehman group, was placed into administration,
together with Lehman Brothers Ltd, LB Holdings PLC and LB UK RE
Holdings Ltd. Tony Lomas, Steven Pearson, Dan Schwarzmann and
Mike Jervis, partners at PricewaterhouseCoopers LLP, have been
appointed as joint administrators to Lehman Brothers International
(Europe) on Sept. 15, 2008. The joint administrators have
been appointed to wind down the business.
Lehman Brothers Japan Inc. and Lehman Brothers Holdings Japan Inc.
filed for bankruptcy in the Tokyo District Court on Sept. 16.
Lehman Brothers Japan Inc. reported about JPY3.4 trillion
(US$33 billion) in liabilities in its petition.
Bankruptcy Creditors' Service, Inc., publishes Lehman Brothers
Bankruptcy News. The newsletter tracks the Chapter 11 proceeding
undertaken by Lehman Brothers Holdings, Inc., and other insolvency
and bankruptcy proceedings undertaken by its affiliates.
(http://bankrupt.com/newsstand/or 215/945-7000)
LEHMAN BROTHERS: Seeks OK for Moulton for Foreclosure Litigation
----------------------------------------------------------------
Lehman Brothers Holdings Inc. and its affiliated debtors seek
authority from the Court to employ Moulton Bellingham PC as their
special counsel effective March 1, 2011.
Moulton Bellingham has served as one of the "ordinary course"
professionals of the Debtors. Its fees and expenses, however,
are expected to exceed the $1 million compensation cap for OCPs,
prompting the Debtors to seek court approval to employ the firm
pursuant to Section 327 of the Bankruptcy Code.
As special counsel, the firm will continue to provide the same
services, which include representing the Debtors in a foreclosure
litigation and the defense of lender liability claims asserted in
Montana courts.
Moulton Bellingham will be paid for its services on an hourly
basis and will be reimbursed for its expenses. The hourly rates
for the firm's professionals range from $210 to $310 for
partners, $150 to $205 for associates, and $140 for paralegals
and other non-lawyer professionals.
In an affidavit, Doug James, Esq., at Moulton Bellingham,
declares that the firm is "not currently adverse to the Debtors
or their affiliates."
About Lehman Brothers
Lehman Brothers Holdings Inc. -- http://www.lehman.com/-- was the
fourth largest investment bank in the United States. For more
than 150 years, Lehman Brothers has been a leader in the global
financial markets by serving the financial needs of corporations,
governmental units, institutional clients and individuals
worldwide.
Lehman Brothers filed for Chapter 11 bankruptcy Sept. 15, 2008
(Bankr. S.D.N.Y. Case No. 08-13555). Lehman's bankruptcy petition
disclosed US$639 billion in assets and US$613 billion in debts,
effectively making the firm's bankruptcy filing the largest in
U.S. history. Several other affiliates followed thereafter.
Additional units, Merit LLC, LB Somerset LLC and LB Preferred
Somerset LLC, sought for bankruptcy protection in December 2009 or
more than a year after LBHI and its other affiliates filed their
bankruptcy cases.
The Debtors' bankruptcy cases are handled by Judge James M. Peck.
Harvey R. Miller, Esq., Richard P. Krasnow, Esq., Lori R. Fife,
Esq., Shai Y. Waisman, Esq., and Jacqueline Marcus, Esq., at Weil,
Gotshal & Manges, LLP, in New York, represent Lehman. Epiq
Bankruptcy Solutions serves as claims and noticing agent.
Dennis F. Dunne, Esq., Evan Fleck, Esq., and Dennis O'Donnell,
Esq., at Milbank, Tweed, Hadley & McCloy LLP, in New York, serve
as counsel to the Official Committee of Unsecured Creditors.
Houlihan Lokey Howard & Zukin Capital, Inc., is the Committee's
investment banker.
On Sept. 19, 2008, the Honorable Gerard E. Lynch of the U.S.
District Court for the Southern District of New York, entered an
order commencing liquidation of Lehman Brothers, Inc., pursuant to
the provisions of the Securities Investor Protection Act (Case No.
08-CIV-8119 (GEL)). James W. Giddens has been appointed as
trustee for the SIPA liquidation of the business of LBI.
The Bankruptcy Court has approved Barclays Bank Plc's purchase
of Lehman Brothers' North American investment banking and
capital markets operations and supporting infrastructure for
US$1.75 billion. Nomura Holdings Inc., the largest brokerage
house in Japan, purchased LBHI's operations in Europe for US$2
plus the retention of most of employees. Nomura also bought
Lehman's operations in the Asia Pacific for US$225 million.
International Operations Collapse
Lehman Brothers International (Europe), the principal UK trading
company in the Lehman group, was placed into administration,
together with Lehman Brothers Ltd, LB Holdings PLC and LB UK RE
Holdings Ltd. Tony Lomas, Steven Pearson, Dan Schwarzmann and
Mike Jervis, partners at PricewaterhouseCoopers LLP, have been
appointed as joint administrators to Lehman Brothers International
(Europe) on Sept. 15, 2008. The joint administrators have
been appointed to wind down the business.
Lehman Brothers Japan Inc. and Lehman Brothers Holdings Japan Inc.
filed for bankruptcy in the Tokyo District Court on Sept. 16.
Lehman Brothers Japan Inc. reported about JPY3.4 trillion
(US$33 billion) in liabilities in its petition.
Bankruptcy Creditors' Service, Inc., publishes Lehman Brothers
Bankruptcy News. The newsletter tracks the Chapter 11 proceeding
undertaken by Lehman Brothers Holdings, Inc., and other insolvency
and bankruptcy proceedings undertaken by its affiliates.
(http://bankrupt.com/newsstand/or 215/945-7000)
CATHOLIC CHURCH: Confirmation Hearing on Wilm. Plan Resumes Today
-----------------------------------------------------------------
The hearing to consider confirmation of the Second Amended
Chapter 11 Plan of Reorganization of the Catholic Diocese of
Wilmington, Inc., dated May 23, 2011, commenced on July 8.
Christopher S. Sontchi of the U.S. Bankruptcy Court for the
District of Delaware was expected to give his final approval to
the Plan Friday, but that did not happen, according to Sean
O'Sullivan of delawareonline.com.
Testimony ran long and Judge Sontchi wanted more detail from the
Diocese about where exactly the money will be coming from for
"exit financing," according to attorneys, which includes funding
pension obligations and paying administrative expenses, notes the
report.
At one point, reports Mr. O'Sullivan, Judge Sontchi seemed
concerned when a witness for the Diocese said that plans for a
$15 million line of credit or loan had been "lined up" but the
financing was not yet finalized.
After hearing several hours of testimony and arguments, Judge
Christopher Sontchi continued the hearing to July 14, when
attorneys for the Diocese are expected to provide more
information about where they will find the money needed to fund
the Plan, relates The Associated Press.
Bishop Malooly: No Pension for Abusers
Bishop Francis Malooly was put on the stand as the first witness
to testify at the July 8 hearing.
In his testimony, AP notes, Bishop Malooly said that the Diocese
tried to be fair to all survivors and victims of priest sex abuse
and that the Diocese won't be providing pension payments or other
benefits to known child abusers.
Bishop Malooly told the Court that he must reserve the right to
provide charity to abuser priests as a part of the Diocese's
bankruptcy plan because church law requires him to provide
"sustenance" to the men as long as they have not been kicked out
of the priesthood by the pope.
He also said that in deference to feelings of those who survived
sexual abuse at the hands of clergy, he would not be inclined to
grant such charity to the men should they seek it. He noted that
he has cut off pension checks to the two suspended priests who
are eligible to receive such payments.
At least five men who have been identified by the Diocese as
having credible or substantiated charges of sexual abuse lodged
against them remain priests, though the Diocese has suspended the
five from all clerical duties and has ordered them not to hold
themselves out as priests.
This is because the Vatican has not yet acted on or has rejected
requests from the Diocese to defrock them, notes the
delawareonline report.
At one point, in response to questions from Thomas S. Neuberger,
Esq., at The Neuberger Firm P.A., in Wilmington, Delaware, the
counsel of The Unofficial Group of Abuse Survivors -- nearly 100
survivors of priest sexual abuse -- Bishop Malooly said that if
he was commanded by his superiors in the church to provide
financial assistance to the suspended priests, "I'd have a
problem and maybe I'd have to resign my position."
"It would take a real stretch for me to be charitable to any of
these perpetrators because of the impact that it would have on
survivors," Bishop Malooly said when he was cross-examined by Mr.
Neuberger, according to delawareonline.
At the start of bankruptcy proceedings in October 2009, Bishop
Malooly had asked the bankruptcy court to allow the Diocese to
continue paying for pensions and medical benefits for abuser
priests, including Bishop Michael Saltarelli, Douglas Dempster,
and John Sarro.
Bishop Malooly acknowledged that was the case in 2009, but he
said he has since "re-adjusted" his thinking on the issue after
meeting with survivors of abuse and hearing their concerns.
Bishop Malooly also testified that should the Vatican defrock the
priests -- as the Diocese has requested -- then he will no longer
have an obligation to the men under canon law.
While Mr. Neuberger noted that the requests to defrock some of
the priests have been pending for years -- and at least one was
apparently rejected by Rome -- Bishop Malooly said he is
confident the men will be "laicized" and that the delay is due to
a backlog of requests for such actions at the Vatican.
Abuse Survivors' Concern on Settlement
Attorneys representing some survivors accused the Diocese at the
July 8 hearing of reneging on a settlement reached in February
and trying to prevent one parish from being held to a separate
$1.7 million settlement it reached with an abuse survivor earlier
this year, notes AP.
Mr. Neuberger said the Diocese agreed in February that the abuse
victims would be paid within 60 days after the court confirms the
reorganization plan, but that it now wants to reserve the right
to delay payments until any possible appeals are resolved.
"We're asking the court to enforce the settlement agreement," AP
quoted Mr. Neuberger as saying.
Robert Brady, Esq., an attorney for the diocese, said it has
agreed to put $50 million for the abuse victims in escrow within
14 days of the plan confirmation date, thus allowing interest to
accrue on behalf of the abuse survivors.
Mr. Brady also noted that the Plan is supported by all but one of
the abuse survivors who voted on it.
That survivor, Joseph Curry, reached a $1.7 million settlement
with St. Dennis parish in Galena, Md., in January. But Mr. Curry
could see that agreement voided because the parish entered into
it after diocesan officials already had agreed to accept more
than $50 million from the Wilmington-based Catholic Diocese
Foundation to help fund the bankruptcy settlement, on the
condition that all parishes would be released from liability,
says the report.
"How were you being fair to Mr. Curry by agreeing to take away
what the parish had agreed to?" Mr. Curry's attorney, Robert
Jacobs, asked Bishop Malooly.
Bishop Malooly said that given the total amount of the settlement
with all survivors, he expects that Mr. Curry "would do fine,"
notes AP.
The Diocese's Plan is based on the payment of settlements
aggregating $77 million to 150 alleged victims of sex abuse in
exchange for the Diocese's, its parishes' and affiliated
entities' release from legal claims related to the church sex
abuse scandal.
Private Discussion on Financing
According to the AP report, Judge Sontchi called attorneys into
his chambers for a private discussion after questioning the
diocese's chief financial officer, Joseph Corsini, about how the
Diocese planned to make promised payments to its lay employee
pension fund and cover an estimated $5 million in fees for
attorneys and other professionals in the bankruptcy case,
including an existing unpaid balance of more than $929,000.
Asked by Judge Sontchi where the money for the pension payments
was coming from, Mr. Corsini said the Diocese planned to borrow
it but had not finalized an agreement with a lender. Mr. Corsini
testified earlier that the Diocese also would use money from
existing sources and the sale or potential sale of property to
meet the pension payments, AP notes.
"So without selling real estate or new financing, you don't have
enough to make these payments," Judge Sontchi noted.
Attorneys on all sides, however, seemed confident that the issue
on exit financing could be resolved quickly next week and that
the plan will be approved by Judge Sontchi with some possible
minor amendments, notes delawareonline.
About the Diocese of Wilmington
The Diocese of Wilmington covers Delaware and the Eastern Shore
of Maryland and serves about 230,000 Catholics. The Delaware
diocese is the seventh Roman Catholic diocese to file for Chapter
11 protection to deal with lawsuits for sexual abuse. Previous
filings were by the dioceses in Spokane, Washington; Portland,
Oregon; Tucson, Arizona; Davenport, Iowa, Fairbanks, Alaska; and
San Diego, California.
The Diocese filed for Chapter 11 protection (Bankr. D.
Del. Case No. 09-13560) on Oct. 18, 2009. Attorneys at Young
Conaway Stargatt & Taylor, LLP, serve as counsel to the Diocese.
The Ramaekers Group, LLC, is the financial advisor. The petition
says assets range $50 million to $100 million while debts are
between $100 million to $500 million.
The bankruptcy filing automatically stayed eight consecutive abuse
trials scheduled in Delaware scheduled to begin Oct. 19, 2009.
There were 131 cases filed against the Diocese, with 30 scheduled
for trial, as of the bankruptcy filing.
(Catholic Church Bankruptcy News; Bankruptcy Creditors' Service,
Inc., http://bankrupt.com/newsstand/or 215/945-7000).
CATHOLIC CHURCH: Wilm. Lay Panel Wins OK to Hire Buck Consultants
-----------------------------------------------------------------
The Official Committee of Lay Employees appointed in the Chapter
11 case of the Catholic Diocese of Wilmington, Inc., received
authority from the U.S. Bankruptcy Court for the District of
Delaware to retain Buck Consultants as its pension consultants,
nunc pro tunc to May 23, 2011.
The professional services that the Lay Employees Committee
expects that Buck Consultants will be called upon to render may
include, but are not limited to:
-- providing actuarial and valuation services with respect to
the Lay Employees Pension Plan;
-- analyzing claims against the Lay Pension Fund;
-- advising the Lay Employees Committee with respect to
pension issues under any plan filed in the Case; and
-- performing all other pension consulting services for the
Lay Employees Committee that may be necessary or desirable
in the Chapter 11 proceedings.
Buck Consultants will be paid according to its customary hourly
rates. The current hourly rates applicable to the principal
advisors proposed to represent the Lay Employees Committee are:
Professional Title Rate Per Hour
------------ ----- -------------
Aaron Shapiro Director $568
David Scharf Director $568
Michael Rozsa Senior Consultant $475
Kandace Kreider Senior Associate $284
Other professionals may render services to the Lay Employees
Committee as needed. Generally, Buck Consultants' hourly rates
are in these ranges:
Principal $734
Director $568
Senior Consultant $475
Consultant $356
Senior Associate $284
Associate $239
Administrative Staff $170
Aaron Shapiro, a director at Buck Consultants, assures the Court
that his firm is a "disinterested person" as the term is defined
in Section 101(14) of the Bankruptcy Code.
The Committee certified that no objections were filed to their
application to retain Buck Consultants as its pension consultants
as of July 11, 2011. Accordingly, the U.S. Bankruptcy Court for
the District of Delaware approved the application.
About the Diocese of Wilmington
The Diocese of Wilmington covers Delaware and the Eastern Shore
of Maryland and serves about 230,000 Catholics. The Delaware
diocese is the seventh Roman Catholic diocese to file for Chapter
11 protection to deal with lawsuits for sexual abuse. Previous
filings were by the dioceses in Spokane, Washington; Portland,
Oregon; Tucson, Arizona; Davenport, Iowa, Fairbanks, Alaska; and
San Diego, California.
The Diocese filed for Chapter 11 protection (Bankr. D.
Del. Case No. 09-13560) on Oct. 18, 2009. Attorneys at Young
Conaway Stargatt & Taylor, LLP, serve as counsel to the Diocese.
The Ramaekers Group, LLC, is the financial advisor. The petition
says assets range $50 million to $100 million while debts are
between $100 million to $500 million.
The bankruptcy filing automatically stayed eight consecutive abuse
trials scheduled in Delaware scheduled to begin Oct. 19, 2009.
There were 131 cases filed against the Diocese, with 30 scheduled
for trial, as of the bankruptcy filing.
(Catholic Church Bankruptcy News; Bankruptcy Creditors' Service,
Inc., http://bankrupt.com/newsstand/or 215/945-7000).
CATHOLIC CHURCH: Spokane in Mediation Over Sex Abuse Claims
-----------------------------------------------------------
The Catholic Diocese of Spokane and victims of sex abuse
committed by priests are meeting behind closed doors to settle
claims, according to KXLY.com.
The report says nine insurance companies are involved as the
Diocese attempts to settle 33 new claims of sexual abuse that
were filed after Spokane's $48 million bankruptcy settlement.
The Settlement included approximately $1 million for new
allegations but KXLY, citing court documents, notes that the
money is dwindling down and the Diocese is at risk of foreclosing
on church property.
The mediation talks also include Morning Star Boys Ranch who
previously joined the Spokane Diocese's mediation effort to
resolve post-confirmation issues in the Chapter 11 case.
Morning Star is a residential group home for boys founded in
January 1957. It is located on Glenrose Prairie, in Southeast
Spokane, Washington.
Two judges will decide if Morning Star should contribute money to
a settlement, says the report.
About The Diocese of Spokane
The Roman Catholic Church of the Diocese of Spokane filed for
chapter 11 protection (Bankr. E.D. Wash. Case No. 04-08822) on
Dec. 6, 2004. Michael J. Paukert, Esq., at Paine, Hamblen,
Coffin, Brooke & Miller, LLP, represents the Spokane Diocese in
its restructuring efforts. When the Debtor filed for protection
from its creditors, it listed $11,162,938 in total assets and
$81,364,055 in total debts.
The Diocese of Spokane, the Tort Claimants Committee, the Future
Claims Representative, and the Executive Committee of the
Association of Parishes delivered an Amended Plan of
Reorganization, and a Disclosure Statement describing that Plan to
the Court on Feb. 1, 2007. The Honorable Patricia C. Williams
approved the disclosure statement on March 8, 2007. On April 24,
2007, the Court confirmed Spokane's second amended joint plan.
That plan is effective May 31, 2007. (Catholic Church Bankruptcy
News; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)
LEXICON UNITED: Shareholders OK Accres Global Acquisition
---------------------------------------------------------
A Special Meeting of the shareholders of Lexicon United
Incorporated was held on July 11, 2011. A quorum representing
5,882,034 issued shares out of a total 9,861,134 issued and
outstanding shares was present or by telephone which represented a
majority a majority authorized to vote at such meeting.
At said meeting, the shareholders approved the Acquisition
Agreement Dated July 11, 2011, to acquire Accres Global AG, from
Vela Heleen Holding GMBH and ZUG Investment Group AG. The said
acquisition had prior approval by the officers and directors of
the Company by a unanimous vote. Accres Global AG is engaged in
the trade in rough and polished diamonds. They have a unilateral,
non-negotiable contract with Accres Mineral Trading BVBA, based in
the diamonds city of Antwerp and with Mostland International FZC,
based in Dubai, the United Arab Emirates
Under said Agreement the Company purchased from the Sellers Accres
Global AG 8,875,021 Series B Preferred Shares of Lexicon, each
Preferred Shares is convertible and will have the voting power
equal to ten Common Shares of Lexicon.
The Company has wired to the Escrow Agent's IOLTA-Lawyers Trust
Account with JPMorgan Chase Bank, N.A., $110,000 U.S. Dollars, for
the benefit of the Company to be used to pay audit fees in the
United States and Brazil for the Registrant to bring the Company
current in its filings with the U.S. Securities and Exchange
Commission. The Company and the Sellers agreed to use the
services of a qualified accounting firm in Brazil and Meyler &Co.,
a PCAOB qualified auditing firm in the U.S. for those services.
The Company has delivered to the Escrow Agent a note for US$40,000
payable to the order of Elie Saltoun or his assign which note will
be paid $10,000 U.S. Dollars per month by wire transfer to the
Escrow Agent's IOLTA-Lawyers Trust Account with JPMorgan Chase
Bank, N.A. for four consecutive months, first payment due one
month from the closing date. The Saltoun Note is secured by the
Lexicon Shares held in escrow by the Escrow Agent.
The Company has delivered to the Escrow Agent a note for US$30,000
payable to the order of Prime Atlas LLC or its assign which note
will be paid US$10,000 per month by wire transfer to the Escrow
Agent's IOLTA-Lawyers Trust Account with JPMorgan Chase Bank,
N.A., for three consecutive months, first payment due one month
after the Saltoun Note is paid off. The Atlas Note is secured by
the Lexicon Shares held in escrow by the Escrow Agent.
The Company agreed to spin-off its subsidiaries United Oil
Services, Inc., and Engepet Energy Enterprises, Inc., and any and
all other existing assets and operations of Lexicon in existence
prior to the Agreement to Elie Saltoun or his assigns.
A full-text copy of the filing is available for free at:
http://is.gd/fI2oWc
About Lexicon United
Austin, Tex.-based Lexicon United Incorporated and its subsidiary,
ATN Capital e Participacoes Ltd., a Brazilian limited company, are
engaged in the business of purchasing, managing and collecting
defaulted consumer receivables for its own account and managing,
collecting and servicing portfolios of defaulted and charged-off
account receivables for large financial institutions in Brazil.
These receivables are acquired from consumer credit originators,
primarily credit card issuers in Brazil.
As reported in the Troubled Company Reporter on May 25, 2010,
Meyler & Company, LLC, in Middletown, N.J., expressed substantial
doubt about the Company's ability to continue as a going concern
following the Company's 2009 results. The independent auditors
noted that the Company continues to have negative cash flows from
operations, recurring losses from operations, and has a
stockholders' deficit.
The Company's balance sheet at Sept. 30, 2010, showed $3.02
million in total assets, $3.11 million in total liabilities,
and a stockholders' deficit of $86,505.
LOCATEPLUS HOLDINGS: Announces Resignations of Directors
--------------------------------------------------------
The Board of Directors of LocatePLUS Holdings Corporation accepted
Patrick Murphy's voluntary resignations from the Board of
Directors and from his positions as Secretary of the Corporation
and any of its subsidiaries. Simultaneously, the Board appointed
Frederick Vinson and Moshe Zuchaer to fill the Board positions
vacated by Patrick Murphy and Ron Lifton (who resigned on June 16,
2010).
The Board of Directors appointed John Nachef to fill the term of
departed director James Ahearn (who resigned on May 12, 2011).
Thereafter, the Board accepted George Isaac's voluntary
resignations from the Board of Directors of the Corporation and
its subsidiaries; accepted Anthony Spatorico's resignations from
the Board of Directors of the Corporation and its subsidiaries;
and appointed Carl Green to the Board of Directors of Locate Plus
Holdings Corporation.
The Board of Directors accepted Derrick Spatorico's voluntary
resignation from the Board of Directors.
The Company said none of the departures were the result of any
disagreements with the Corporation regarding its operations,
policies or practices.
About LocatePLUS Holdings
Beverly, Mass.-based LocatePLUS Holdings Corporation, through
itself and its wholly-owned subsidiaries LocatePLUS Corporation,
Worldwide Information, Inc., Entersect Corporation, Dataphant,
Inc., and Employment Screening Profiles, Inc. are business-to-
business, business-to-government and business-to-consumer
providers of public information via its proprietary data
integration solutions.
On June 16, 2011 LocatePLUS Holdings Corporation and its
subsidiaries filed petitions under the Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Mass. Case No. 11-15791). Harold B.
Murphy, Esq., at Murphy & King, P.C., in Boston, represents the
Debtor as counsel. LocatePLUS Holdings estimated assets of $0 to
$50,000 and debts of $1,000,001 to $10 million.
The Company's balance sheet at March 31, 2011, showed
$2.08 million in total assets, $12.25 million in total liabilities
and a $10.17 million total stockholders' deficit.
LOS ANGELES DODGERS: MLB Gets Limited Discovery of Dodgers' Lender
------------------------------------------------------------------
Lance Duroni at Bankruptcy Law360 reports that U.S. Bankruptcy
Judge Kevin Gross on Tuesday granted Major League Baseball limited
discovery from the hedge fund that loaned $60 million to the Los
Angeles Dodgers as the league attempts to supplant the loan with
an MLB-sponsored financing package.
According to Law360, Judge Gross granted MLB a deposition and
limited document production from Highbridge Principal Strategies
LLC, a JP Morgan-affiliated hedge fund, but constrained the
discovery only to the terms of the debtor-in-possession loan
itself, which would be worth $150 million upon final approval.
About the Los Angeles Dodgers
Los Angeles Dodgers LLC operates the Los Angeles Dodgers, a
professional Major League Baseball club in the Los Angeles
metropolitan area. Frank McCourt, a Boston real-estate developer
who unsuccessfully bid for the Boston Red Sox, bought the Dodgers
from Rupert Murdoch's Fox Entertainment Group, Inc. in 2004 for
$330 million. Mr. McCourt also bought the Dodgers Stadium from
Fox for $100 million.
Los Angeles Dodgers LLC filed for bankruptcy protection (Bankr. D.
Del. Lead Case No. 11-12010) on June 27, 2011, after MLB
Commissioner Bud Selig rejected a television deal with News
Corp.'s Fox Sports, leaving Mr. McCourt unable to make payroll for
June 30 and July 1. Fox Sports has exclusive cable television
rights for Dodgers games until the end of 2013 baseball season.
Chapter 11 filings were also made for LA Real Estate LLC, an
affiliated entity which owns Dodger Stadium, and three other
related holding companies.
The petition estimates assets of up to $500 million and debts of
up to $1 billion. According to Forbes, the team is worth about
$800 million, making it the third most valuable baseball team
after the New York Yankees and the Boston Red Sox.
Judge Kevin Gross presides over the case. Lawyers at Young,
Conaway, Stargatt & Taylor and Dewey & LeBoeuf LLP serve as the
Debtors' bankruptcy counsel.
The LA Dodgers is the 12th sports team in North America to have
sought bankruptcy protection, according to The Wall Street
Journal.
LOUISVILLE ORCHESTRA: Musicians Reject "Per-Service" Model
----------------------------------------------------------
Elizabeth Kramer at Courier Journal reports that the discord
between the Louisville Orchestra and its musicians reached new
levels Monday as the players said they would unanimously reject a
blunt offer from the orchestra's management to perform on a "per-
service model" or risk losing their positions.
According to the report, in a six-page certified letter sent to
each musician last week, Orchestra CEO Robert Birman outlined a
schedule of performances and rehearsals running from September
through April and asked the players to indicate which ones they
were willing to work.
The letter said, if musicians do not respond by Wednesday, it
"will be treated as a voluntary refusal to work." Mr. Birman
added that in such an event, "the Louisville Orchestra will take
whatever steps are legally appropriate to fill your position."
Courier Journal reports that in negotiations, management has
sought to cut the number of working weeks from 37 to 30 and
fundamentally change how musicians' contracts are structured. It
has proposed to employ 71 musicians, but under a staggered system
in which only 40 would work the full 30 weeks. The other
musicians would be employed for either 10 or 20 weeks per year.
The musicians disapprove of that plan, according to the report.
About Louisville Orchestra
Based in Louisville, Kentucky, Louisville Orchestra, Inc. filed
for Chapter 11 bankruptcy protection (Bankr. W.D. Ky. Case No. 10-
36321) on Dec. 3, 2010. Judge David T. Stosberg presides over the
case. Daniel T. Albers, Jr., Esq., Mark A. Robinson, Esq., and
Robert Wagner, Esq., at Valenti Hanley & Robinson PLLC, represent
the Debtor. In its schedules, Louisville Orchestra disclosed it
had $412,000 in assets and $1.4 million in liabilities.
LOWER BUCKS: To Continue Operations as Stand-Alone Hospital
------------------------------------------------------------
phillyBurbs.com reports that Lower Bucks Hospital intends to
continue operating as a standalone medical center, according to
its reorganization plan filed on July 8 with the U.S. Bankruptcy
Court.
According to phillyBurbs.com, the proposed plan includes a 61-page
disclosure statement that provides creditors with "adequate
information" to enable them to evaluate the plan.
"LBH is thrilled to be filing a plan of reorganization,"
phillyBurbs.com quoes hospital CEO and President Al Mezzaroba as
saying. "This plan shows a financially stable institute and
reaffirms the dedication we have to keeping this hospital open,
and serving our community."
phillyBurbs.com notes that the paperwork is missing some critical
documents, which were listed as "to be provided." They include
the liquidation analysis, which shows how much creditors would be
paid, if the hospital closed and sold its assets, the report says.
Bankruptcy attorney Michael Shavel, of Hill-Wallack LLP in Newtown
Township, though, said it's unlikely that hospital creditors would
benefit more if the hospital liquidated its assets, according to
phillyBurbs.com.
phillyBurbs.com says the missing information must be submitted at
least 45 days before the scheduled Sept. 1 hearing, where the
court determines whether the disclosure statement should be
approved.
The hospital, phillyBurbs.com recalls, had intense negotiations
with a potential buyer in 2009, prior to filing for bankruptcy,
but that deal faltered.
After filing for bankruptcy protection, phillyBurbs.com notes, the
hospital had three parties interested in buying the hospital, but
ultimately it was determined that none of the offers were
"viable," according to the disclosure. phillyBurbs.com relates
that the hospital has recently hinted that its restructuring plan
would not involve a sale.
The disclosure statement includes the hospital's version of the
events leading to the bankruptcy filing.
Under the plan, phillyBurbs.com discloses, the authority will take
title to the hospital's property as collateral and the hospital
will repay the loan with interest over 20 years and buy back the
36-acre property.
Lower Bucks Hospital will repay the loan using its 0.5% of the
revenue from table games at Parx Casino in Bensalem. The total
amount paid by the hospital would add up to almost $30 million,
phillyBurbs.com adds.
About Lower Bucks Hospital
Bristol, Pennsylvania-based Lower Bucks Hospital is a non-profit
hospital based in Bristol, Pennsylvania. The Hospital is
currently licensed to operate 183 beds. Together with affiliates
Advanced Primary Care Physicians and Lower Bucks Health
Enterprises, Inc., Lower Bucks owns a 36-acre campus with several
medical facilities. The Hospital's emergency room serves
approximately 30,000 patients annually. For the fiscal year
ending June 30, 2009, Lower Bucks had $114 million in consolidated
revenues.
The Hospital filed for Chapter 11 bankruptcy protection (Bankr.
E.D. Pa. Case No. 10-10239) on Jan. 13, 2010. The Hospital's
affiliates -- Lower Bucks Health Enterprises, Inc, and Advanced
Primary Care Physicians also filed Chapter 11 petitions. Jeffrey
C. Hampton, Esq., and Adam H. Isenberg, at Saul Ewing LLP, assist
the Hospital in its restructuring effort. Donlin, Recano &
Company, Inc., is the Hospital's claims and notice agent. The
Debtors tapped Zelenkofske Axelrod LLC for the provision of tax
preparation services. The Hospital estimated assets and
liabilities at $50 million to $100 million .
MARSH & MCLENNAN: Moody's Gives (P)Ba1 Pref. Stock Shelf Rating
---------------------------------------------------------------
Moody's Investors Service has assigned a Baa2 rating to a $500
million offering of 10-year senior unsecured notes by Marsh &
McLennan Companies, Inc. (NYSE: MMC -- senior unsecured debt Baa2,
short-term debt Prime-2) off a multi-purpose shelf registration.
The rating agency also affirmed MMC's existing ratings and
assigned provisional ratings to the shelf registration. Net
proceeds from the offering, along with cash on hand, will be used
to fund the purchase of approximately $600 million of notes
received under MMC's cash tender offers, announced in late June,
for senior notes maturing in 2014 and 2015. The refinancing will
extend MMC's debt maturity profile and lower its yearly interest
expense, albeit these benefits are partly offset by the prepayment
costs associated with the tender offer. The rating outlook for MMC
is stable.
RATING RATIONALE
MMC's ratings reflect its strong market presence in global
insurance brokerage, its broad product and geographic
diversification, and its expertise in providing complex risk
management solutions. These strengths are tempered by the
company's relatively weak, but improving, operating margins,
volatile net profits, and financial flexibility metrics that are
below expectations for the rating category. Also, like other
insurance brokers, MMC faces the challenges of a slow economic
recovery, soft pricing in the commercial property & casualty
insurance market, and potential errors and omissions.
"We expect MMC's credit metrics to benefit from restructuring
steps and debt reduction achieved over the past few years," said
Bruce Ballentine, Moody's lead analyst for MMC. "The stable rating
outlook reflects Moody's view that the company will gradually
improve its operating margins and remain a market leader in
insurance brokerage and consulting."
Moody's cited the following factors that could lead to a rating
upgrade for MMC: (i) net profit margin approaching 10%, (ii)
adjusted (EBITDA -- capex) coverage of interest above 7x, and
(iii) adjusted debt-to-EBITDA ratio below 2.5x.
The rating agency added that the following factors could lead to a
rating downgrade: (i) net profit margin below 6%, (ii) adjusted
(EBITDA -- capex) coverage of interest below 4x, or (iii) adjusted
debt-to-EBITDA ratio above 3.5x.
These provisional ratings have been assigned with a stable
outlook:
Marsh & McLennan Companies, Inc. -- senior unsecured debt shelf at
(P)Baa2, subordinated debt shelf at (P)Baa3, preferred stock shelf
at (P)Ba1.
These ratings have been affirmed with a stable outlook:
Marsh & McLennan Companies, Inc. -- senior unsecured debt at Baa2,
short-term debt at Prime-2.
The principal methodology used in this rating was Moody's Global
Rating Methodology for Insurance Brokers & Service Companies,
published in January 2008.
Based in New York City, MMC is a global professional services firm
providing advice and solutions in the areas of risk, strategy and
human capital to clients in more than 100 countries. MMC reported
total revenue of $10.6 billion in 2010 and $2.9 billion in the
first quarter of 2011. Total equity was $6.7 billion as of
March 31, 2011.
METROPARK USA: Files Schedules of Assets & Liabilities
------------------------------------------------------
Metropark USA, Inc., filed with the U.S. Bankruptcy Court for the
Southern District of New York, its schedules of assets and
liabilities, disclosing:
Name of Schedule Assets Liabilities
---------------- ------- -----------
A. Real Property $0
B. Personal Property $25,829,270
C. Property Claimed as
Exempt
D. Creditors Holding
Secured Claims $3,431,009
E. Creditors Holding
Unsecured Priority
Claims $1,971,489
F. Creditors Holding
Unsecured Non-priority
Claims $10,722,821
----------- -------------
TOTAL $25,829,270 $16,125,320
About Metropark USA
Metropark USA, Inc. -- http://www.metroparkusa.com/-- is a Los
Angeles retail chain with 70 stores in 21 states. Metropark was
founded in 2004 to capitalize on the large Gen Y segment (the 25-
35 year old customer) in demand for fashion-forward apparel and
accessories. Its headquarters, distribution centers, and e-
commerce site located in Los Angeles, California.
Metropark filed for Chapter 11 bankruptcy protection (Bankr.
S.D.N.Y. Case No. 11-22866) on April 26, 2011. Cathy Hershcopf,
Esq., Jeffrey L. Cohen, Esq., and Alex R. Velinsky, Esq., at
Cooley LLP, in New York, serve as the Debtor's bankruptcy counsel.
CRG Partners Group, LLC, is the Debtor's financial advisor. The
Debtor also tapped Great American Group Real Estate, LLC doing
business as GA Keen Realty Advisors as special real estate
advisor.
The Debtor disclosed total assets of $28,933,805 and total debts
of $28,697,006 as of April 2, 2011.
METROPARK USA: Can Use Wells Fargo Cash Collateral Until July 31
----------------------------------------------------------------
The Hon. Robert D. Drain of the U.S. Bankruptcy Court for the
Southern District of New York, issued a third interim order,
authorizeing Metropark USA, Inc., to use the cash collateral of
Wells Fargo Bank, National Association, as administrative agent
and collateral agent, through July 31, 2011.
Wells Fargo, is successor by merger to Wells Fargo Retail Finance,
LLC.
The Debtor would use the cash collateral to fund the maintenance
of its assets, payment of employees, payroll taxes, inventory
suppliers and other vendors, overhead, lease expenses, and other
expenses necessary for the operation of the Debtor's business.
The Debtor was granted access to the cash collateral until
June 30, 2011, at 5:00 p.m., ET.
A final hearing to consider the Debtor's request for cash
collateral is scheduled for July 11, at 10:00 a.m.
As reported in the Troubled Company Reporter on May 25, as of the
Petition Date, the Debtor owes Wells Fargo:
i) $2,555,353 (inclusive of $618,840.60 of letters of
credit), plus any and all interest, fees and costs, and any
and all other debts or obligations under the Prepetition
Senior Claim Documents; and
ii) $825,000 under the Prepetition Subordinated Credit
Agreement.
As partial adequate protection for any use or diminution in the
value of the Prepetition Senior Secured Parties' interest, the
Debtor will grant replacement liens and additional liens and
security interests, of the highest available priority in and upon
all of the properties and assets of the Debtor.
As additional partial adequate protection, the Debtor will make
these payments to the Prepetition Agent:
a) payment of interest on the first day of each month on the
Prepetition Senior Claim;
b) payment of all proceeds from the Store Closing Sale; and
c) reimbursement to the Prepetition Agent.
The Official Committee of Unsecured Creditors in the Debtor's case
related that it is investigating the validity of the liens of the
senior secured parties and the prepetition subordinated secured
parties, and reserves any and all rights concerning any and all
claims or actions it may have against the secured parties.
About Metropark USA
Metropark USA, Inc. -- http://www.metroparkusa.com/-- is a Los
Angeles retail chain with 70 stores in 21 states. Metropark was
founded in 2004 to capitalize on the large Gen Y segment (the 25-
35 year old customer) in demand for fashion-forward apparel and
accessories. Its headquarters, distribution centers, and e-
commerce site located in Los Angeles, California.
Metropark filed for Chapter 11 bankruptcy protection (Bankr.
S.D.N.Y. Case No. 11-22866) on April 26, 2011. Cathy Hershcopf,
Esq., Jeffrey L. Cohen, Esq., and Alex R. Velinsky, Esq., at
Cooley LLP, in New York, serve as the Debtor's bankruptcy counsel.
CRG Partners Group, LLC, is the Debtor's financial advisor.
The Debtor disclosed total assets of $28,933,805 and total debts
of $28,697,006 as of April 2, 2011.
MIA REED: Case Summary & Largest Unsecured Creditor
---------------------------------------------------
Debtor: Mia Reed & Company Capital Fund X, LTD
1535 West Loop South, Suite 250
Houston, TX 77027
Bankruptcy Case No.: 11-35981
Chapter 11 Petition Date: July 11, 2011
Court: U.S. Bankruptcy Court
Southern District of Texas (Houston)
Judge: Marvin Isgur
Debtor's Counsel: Peter Johnson, Esq.
LAW OFFICES OF PETER JOHNSON
Eleven Greenway Plaza, Suite 2820
Houston, TX 77046
Tel: (713) 961-1200
Fax: (713) 961-0941
E-mail: pjlawecf@pjlaw.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
The petition was signed by Brent Fredricks, manager of Estate
Property Services, LLC, general partner.
The list of unsecured creditors filed together with its petition
contains only one entry:
Entity Nature of Claim Claim Amount
------ --------------- ------------
Eric Lipper, Esq -- $0
Hirsch & Westheimer PC
700 Louisana, S 2550
Houston, TX 77002
MICROSEMI CORP: S&P Assigns 'BB-' Corporate Credit Rating
---------------------------------------------------------
Standard & Poor's Ratings Services assigned its 'BB-' corporate
credit rating to Irvine, Calif.-based Microsemi Corp. The outlook
is stable.
"At the same time, we assigned a 'BB+' issue-level rating (two
notches higher than the corporate credit rating) to the company's
$425 million first-lien senior secured credit facility. We also
assigned a recovery rating of '1' to the facility, indicating our
expectation of very high (90% to 100%) recovery for lenders in the
event of a payment default. The facility includes a $50 million
revolving credit facility and $375 million term loan," S&P
related.
"We expect Microsemi's good niche position as a provider of
defense, security, aerospace, and industrial applications-focused
analog and mixed signal semiconductor components to result in
continued modest revenue and profitability growth," said Standard
& Poor's credit analyst Joseph Spence, "reflecting sustained end-
market demand and manufacturing facility closings." "In addition,
we expect the company to work to reduce leverage through debt
reduction as a buffer against industry cyclicality."
"Though we view the company's recent operating trends as well as
the progress of its integration of the Actel acquisition
positively, we assess Microsemi's business risk profile as weak,"
added Mr. Spence. "Our assessment primarily reflects its short
track record at current revenue and profitability levels and its
midtier competitive position in a highly cyclical industry. The
company's presence in the more stable aerospace, defense, and
security market, which has provided some offset to the generally
volatile semiconductor industry, only partly offsets those
factors."
MIG INC: Asks Supreme Court to Revive Suit vs. Paul Weiss
---------------------------------------------------------
Dan Rivoli at Bankruptcy Law360 reports that MIG Inc. has asked
the U.S. Supreme Court to revive a malpractice suit against
Paul Weiss Rifkind Wharton & Garrison LLP, challenging New York's
statute of limitations that nixed a suit brought over an error
that led to a bankruptcy-causing shareholder action.
In its petition, dated June 27, to have the high court take the
case, MIG argues New York's three-year statute of limitations that
killed its malpractice suit stemming from a 1997 certificate of
designation violates its equal protection and due process rights,
according to Law360.
About MIG Inc.
Based in Charlotte, North Carolina, MIG Inc. (PINK SHEETS: MTRM,
MTRMP) -- http://www.metromedia-group.com/-- through its wholly
owned subsidiaries, owns interests in several communications
businesses in the country of Georgia. The Company's core
businesses include Magticom Ltd., a mobile telephony operator
located in Tbilisi, Georgia, Telecom Georgia, a long distance
telephony operator, and Telenet, which provides Internet access,
data communications, voice telephony and international access
services.
MIG, Inc., fka Metromedia International Group, Inc., filed for
Chapter 11 bankruptcy protection on June 18, 2009 (Bankr. D. Del.
Case No. 09-12118). Scott D. Cousins, Esq., at Greenberg Traurig
LLP, assists the Company in its restructuring efforts. Debevoise
& Plimpton LLP is the Company's special corporate counsel, while
Potter Anderson & Corroon LLP is the Company's special litigation
counsel. The official committee of unsecured creditors of MIG,
Inc., has retained Baker & McKenzie LLP as its bankruptcy
counsel, nunc pro tunc to June 30, 2009.
In its petition, the Company estimated US$100 million to
US$500 million in assets and US$100 million to US$500 million in
debts. In its formal schedules, the Company said it had assets of
$54,820,681 against debts of $210,183,657.
MORTGAGES LTD: Greenberg Traurig Demands Docs. in $200M Fraud Suit
------------------------------------------------------------------
Samuel Howard at Bankruptcy Law360 reports that Greenberg Traurig
LLP on Tuesday demanded access to investment documents that could
derail an investor class action in Arizona alleging the firm
facilitated a $200 million fraud that Mortgages Ltd.
Filed in May 2010, Law360 says, the putative class action claims
Greenberg Traurig helped draft documents that allowed Mortgages to
raise money for what was effectively a $200 million Ponzi scheme.
About Mortgages Ltd.
Mortgages Ltd. was the subject of an involuntary Chapter 7
petition dated June 20, 2008, filed by KGM Builders Inc. -- a
contractor for Grace Communities, a borrower of the company --
in the U.S. Bankruptcy Court for the District of Arizona.
Central & Monroe LLC and Osborn III Partners LLC, divisions of
Grace Communities, sought the appointment of an interim trustee
for Mortgages Ltd. in the Chapter 7 proceeding.
Mortgages Ltd. faced lawsuits filed by Grace Communities and
Rightpath Limited Development Group for its alleged failure to
fully fund loans. Mortgages Ltd. denied the charges.
The Debtor's case was converted to a chapter 11 proceeding on
June 24, 2008 (Bankr. D. Ariz. Case No. 08-07465). Judge Sarah
Sharer Curley presided over the case. Carolyn Johnsen, Esq., and
Bradley Stevens, Esq., at Jennings, Strouss & Salmon P.L.C.,
replaced Todd A. Burgess, Esq., at Greenberg Traurig LLP, as
counsel to the Debtor. As of Dec. 31, 2007, the Debtor had total
assets of $358,416,681 and total debts of $350,169,423.
Mortgages Ltd. was reorganized pursuant to a plan that was
confirmed by the Bankruptcy Court on March 20, 2009. As part of
the Plan, ML Manager LLC was created to manage and operate the
loans in the portfolio. The original investors for the most part
transferred their interests to 49 separate Loan LLC's. A number
of investors, referred to as "pass through investors" did not
transfer their interests. As part of the Plan, ML Manager took
out $20 million in exit financing to help keep the company afloat
during the reorganization.
MPL 2: S&P Assigns 'B' Corporate Credit Rating
----------------------------------------------
Standard & Poor's Ratings Services assigned its 'B' long-term
corporate credit rating and stable outlook to MPL 2 Acquisition
Canco Inc. MPL, an affiliate of London, England-based Apax
Partners, intends to acquire Toronto-based Trader Corp. from
Yellow Media Inc. (BBB-/Stable/--) for C$745 million in a
leveraged buyout transaction. MPL will be amalgamated with
Toronto-based Trader upon closing, with the amalgamated entity
continuing as Trader. Trader is a leading provider of advertising
and digital marketing services for automotive dealers in Canada.
"We also assigned our 'BB-' issue-level rating (two notches higher
than the corporate credit rating on the company), and '1' recovery
rating, to MPL's proposed C$30 million first-lien 'first-out'
senior secured revolving credit facility due 2016. A '1' recovery
rating indicates our expectation of very high (90%-100%) recovery
for creditors in the event of default. In addition, we assigned
our 'B' issue-level rating (the same as the corporate credit
rating on MPL), and '4' recovery rating, to the company's proposed
$275 million first-lien senior secured notes due 2018. A '4'
recovery rating indicates our expectation of average (30%-50%)
recovery in a default scenario," S&P related.
The ratings on MPL (Trader upon closing) reflect what Standard &
Poor's views as a highly leveraged financial risk profile
characterized by pro forma adjusted debt to EBITDA of about 7.5x
in 2011; weak pro forma cash flow protection measures; and an
aggressive financial policy given the company's leveraged capital
structure and financial sponsor ownership. "The ratings also
reflect our assessment of a weak business risk profile owing to
Trader's need to transition to web-based automotive classified
advertising from print-based publications, as well as its
participation in the highly competitive online advertising space,"
said Standard & Poor's credit analyst Lori Harris.
"Partially offsetting these factors, in our view, are Trader's
position as a leading Canadian online car sales destination,
resulting from its highly trafficked websites (autotrader.ca and
autohebdo.net, the French language version of the site) and
recognizable brand names. In addition, we view the embedded nature
of Trader's Dealer Smart Solutions product in automotive dealers'
workflows as a positive," S&P stated.
The stable outlook reflects Standard & Poor's view that Trader
will maintain its market position as a leading provider of
advertising and digital marketing services for automotive dealers
in Canada, while pursuing a financial policy and credit metrics in
line with the ratings category. "Furthermore, we believe that
profitability should remain fairly stable in the next year as
revenues shift toward higher-margin online classified
advertisements. We could lower the ratings if Trader's adjusted
debt leverage exceeds 8x because of weak operating performance due
to difficulties transitioning to an online revenue base. Given
Trader's very high leverage, we are not contemplating higher
ratings in the next year," S&P stated.
MSR RESORT: Committee Retains Alston & Bird LLP as Counsel
----------------------------------------------------------
MSR Resort Golf Course LLC's committee of unsecured creditors
seeks approval from the U.S. Bankruptcy Court Southern District of
New York to retain Alston & Bird LLP as counsel.
In addition to acting as primary spokesman for the Committee, it
is expected that Alston & Bird LLP's services will include,
without limitation, assisting, advising, and representing the
Committee with respect to the following matters:
(a) The administration of the cases and the exercise of
oversight with respect to the Debtors' affairs including
all issues arising from or impacting the Debtors or the
Committee in the chapter 11 cases;
(b) The preparation on behalf of the Committee of all necessary
applications, motions, orders, reports, and other legal
papers; and
(c) Appearances in the Court to represent the interests of the
Committee;
The firm's hourly rates are:
Personnel Rates
--------- -----
Partner $595 - $985
Counsel $550 - $850
Associate $365 - $630
Paralegal $190 - $285
About MSR Resort
MSR Hotels & Resorts, formerly known as CNL Hotels & Resorts Inc.,
owns a portfolio of eight luxury hotels with over 5,500 guest
rooms, including the Arizona Biltmore Resort & Spa in Phoenix, the
Ritz-Carlton in Orlando, Fla., and Hawaii's Grand Wailea Resort
Hotel & Spa in Maui.
On Jan. 28, 2011, CNL-AB LLC acquired the equity interests in the
portfolio through a foreclosure proceeding. CNL-AB LLC is a joint
venture consisting of affiliates of Paulson & Co. Inc., a joint
venture affiliated with Winthrop Realty Trust, and affiliates of
Capital Trust, Inc.
Morgan Stanley's CNL Hotels & Resorts Inc. owned the resorts
before the Jan. 28 foreclosure.
Following the acquisition, five of the resorts with mortgage debt
scheduled to mature on Feb. 1, 2011, were sent to Chapter 11 by
the Paulson and Winthrop joint venture affiliates. MSR Resort
Golf Course LLC and its affiliates filed for Chapter 11 protection
(Bankr. S.D.N.Y. Lead Case No. 11-10372) in Manhattan on Feb. 1.
The resorts subject to the filings are Grand Wailea Resort and
Spa, Arizona Biltmore Resort and Spa, La Quinta Resort and Club
and PGA West, Doral Golf Resort and Spa, and Claremont Resort and
Spa.
James H.M. Sprayregen, P.C., Esq., Paul M. Basta, Esq., Edward O.
Sassower, Esq., and Chad J. Husnick, Esq., at Kirkland & Ellis,
LLP, serve as the Debtors' bankruptcy counsel. Houlihan Lokey
Capital, Inc., is the Debtors' financial advisor. Kurtzman Carson
Consultants LLC is the Debtors' claims agent.
The five resorts had $2.2 billion in assets and $1.9 billion in
debt as of Nov. 30, 2010, according to court filings. In its
schedules, debtor MSR Resort disclosed $59,399,666 in total assets
and $1,013,213,968 in total liabilities.
NORTH ATLANTIC: Moody's Assigns 'B3' Corporate Family Rating
------------------------------------------------------------
Moody's Investors Service assigned a B3 Corporate Family rating
and Probability of Default rating to North Atlantic Trading
Company, Inc. Moody's also assigned a B2 rating to the company's
proposed offering of $205 million in second lien senior secured
notes and a Caa2 rating to its proposed offering of $80 million in
third lien senior secured notes. The rating outlook is stable.
RATINGS RATIONALE
NATC's B3 Corporate Family rating is constrained by the company's
small scale and weak financial profile, including very high
leverage and negative free cash flow, offset in part by its
portfolio of well known brands and solid market share, albeit in
niche tobacco categories.
While NATC's growth prospects in smokeless tobacco and cigars are
more favorable than for other tobacco categories, primarily
cigarettes, the company's brands must compete against
significantly larger, better resourced, well known branded
competitors. In the significantly smaller and secularly declining
chewing tobacco category, NATC has effectively grown its market
share. However, the sustainability of this strong growth trend
will be dependent on the company's Stoker's brand maintaining its
attractive discount pricing and expanding distribution.
NATC's ratings are also constrained by its highly shareholder
oriented financial policies and its history of distressed debt
exchanges and deep discount open market purchases. The company's
primary shareholder, Thomas Helms, Jr., is Chairman of the Board
and beneficially controls approximately 74% of the parent company,
NAHC's, common stock, including proxies to vote the election of
directors.
Upon completion of the proposed refinancing, NATC's liquidity
profile will be adequate supported by sufficient cash and
internally generated cash flow to support the company's basic
operating needs including a modest increase in working capital. In
addition, liquidity is enhanced by the lack of any near-term debt
maturities and adequate cushion under proposed bank covenants.
Moody's notes, however, that the company's new, unrated $15
million first lien senior secured revolving credit facility is
significantly smaller than its current committed revolver ($55
million). The stable outlook for NATC reflects Moody's
expectations that company's operating and financial performance
will not meaningfully deteriorate from current levels.
NATC's ratings could be upgraded if the company's financial
performance improves significantly such that debt/EBITDA
approaches 5.0 times and free cash flow to debt becomes and is
likely to remain positive.
NATC's ratings could be downgraded if the company's operating
performance and credit metrics deteriorate significantly as a
result of heightened competitive activity or failure of new
products to achieve expected growth and profitability
expectations. Any change in the company's liquidity profile could
also result in a ratings downgrade.
Ratings assigned to North Atlantic Trading Company include:
- Corporate Family rating of B3;
- Probability of Default rating of B3;
- $205 million second lien senior secured notes at B2 (LGD 3,
38%); and
- $80 million third lien senior secured notes at Caa2 (LGD 5,
88%).
The rating outlook is stable.
The principal methodology used in rating North Atlantic Trading
Company, Inc. was the Global Tobacco Industry Methodology,
published November 2010. Other methodologies used include Loss
Given Default for Speculative Grade Issuers in the US, Canada, and
EMEA, published June 2009 (and/or) the Government-Related Issuers
methodology, published July 2010.
NORTH ATLANTIC: S&P Assigns Preliminary 'B-' Corp. Credit Rating
----------------------------------------------------------------
Standard & Poor's Ratings Services assigned its preliminary 'B-'
corporate credit rating to Louisville, Ky.-based North Atlantic
Trading Co. Inc. "At the same time, we assigned a preliminary 'B-'
issue-level rating (the same as the corporate credit rating) to
NATC's proposed $205 million second-lien senior
secured notes maturing in 2016, with a preliminary '3' recovery
rating, indicating our expectation for meaningful (50% to 70%)
recovery in the event of a payment default. We also assigned a
preliminary 'CCC' issue-level rating to the company's proposed $80
million third-lien senior secured notes due 2017, with a
preliminary '6' recovery rating, indicating our expectation for
negligible (0 to 10%) recovery in the event of a payment default.
The outlook is stable," S&P related.
"The preliminary 'B-' corporate credit rating reflects our opinion
that NATC has a high debt burden relative to its size, weak cash
flow measures, and very aggressive financial policy," said
Standard & Poor's credit analyst Mark Salierno. "Our rating also
reflects NATC's narrow business focus, participation in highly
competitive end markets, declining roll-your-own and chewing
tobacco subsegments, and lack of geographic diversification
outside of the U.S."
The stable outlook reflects Standard & Poor's view that NATC's
credit protection measures will remain weak and below 'B' rating
category medians over the next two years. "We could lower the
ratings in the event liquidity tightens, as it could due to weak
operating performance and if cushion under the company's financial
covenants narrows below 10%. This could restrict NATC's access to
its revolving credit facility, and further limit the company's
ability to incur additional debt," S&P added.
OMEGA NAVIGATION: Obtains Interim Approval of First Day Motions
---------------------------------------------------------------
Omega Navigation Enterprises Inc. disclosed that, in connection
with its Chapter 11 proceedings in Houston, Texas, the Court has
granted all of the interim relief that Omega requested. This
included:
-- The right to continue to operate and pay all operating
expenses in the ordinary course
-- The right to continue to pay employees and crew in the
ordinary course
-- The right to continue all cash management procedures
in the ordinary course
-- The right to continue to maintain all insurance in the
ordinary course
The management team continues to operate the business in the
ordinary course. Omega will continue to honor all of its charter
obligations during the pendency of the court protection. Omega
believes the Chapter 11 bankruptcy process will help the Company
facilitate a restructuring of its balance sheet and is working
towards exiting Chapter 11 as a financially stronger entity that
will be positioned to enjoy future growth based on the strength of
its existing modern fleet of product tanker vessels.
As reported in the Troubled Company Reporter-Europe on July 13,
2011, Athens, Greece-based Omega Navigation Enterprises Inc. and
affiliates, owner and operator of tankers carrying refined
petroleum products, filed for Chapter 11 protection (Bankr. S.D.
Tex. Lead Case No. 11-35926) on July 8 in Houston.
OMEGA NAVIGATION: Updated Chapter 11 Case Summary
-------------------------------------------------
Debtor: Omega Navigation Enterprises, Inc.
61. Vasilisis Sofias Avenue
115 21 Athens
Greece
Bankruptcy Case No.: 11-35927
Affiliates that simultaneously sought Chapter 11 protection:
Debtor Case No.
------ --------
Baytown Navigation Inc. 11-35926 (Lead Debtor)
Galveston Navigation Inc. 11-35928
Beaumont Navigation Inc. 11-35930
Carrolton Navigation Inc. 11-35931
Decatur Navigation Inc. 11-35933
Elgin Navigation Inc. 11-35934
Fulton Navigation Inc. 11-35936
Orange Navigation Inc. 11-35937
Omega Navigation (USA) LLC 11-35938
Chapter 11 Petition Date: July 8, 2011
Court: U.S. Bankruptcy Court
Southern District of Texas (Houston)
Judge: Jeff Bohm
About the Debtors: Omega Navigation --
http://www.omeganavigation.com/-- is an
international provider of global marine
transportation services through the ownership
and operation of double hull product tankers.
The current fleet includes twelve double hull
product tankers with a carrying capacity of
about 680,000 dwt. Eight of the vessels are
fully owned by the Company and four are owned
through equal partnership joint ventures with a
wholly owned subsidiary of Glencore
International AG.
The Company was incorporated in the Marshall
Islands in February 2005. Its principal
executive offices are located in Athens, Greece
and it also maintains an office in the United
States.
Debtors' Counsel: Jason Gary Cohen, Esq.
BRACEWELL & GIULIANI LLP
711 Louisiana Street, Suite 2300
Houston, TX 77002
Tel: (713) 221-1416
Fax: (713) 222-3209
E-mail: jason.cohen@bgllp.com
- and -
William Alfred Wood, III, Esq.
BRACEWELL & GIULIANI LLP
711 Louisiana Street, Suite 2300
Houston, TX 77002-2781
Tel: (713) 223-2300
Fax: (713) 221-1212
E-mail: Trey.Wood@bgllp.com
Debtors'
Financial
Advisor: JEFFERIES & COMPANY, INC.
Total Assets: $527.6 million
Total Debts: $359.5 million
The petitions were signed by George Kassiotis, president.
Consolidated List of 30 Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
------ --------------- ------------
V Ships UK Ltd -- $276,986
Skypark, 8 Elliot Place, Sky Park
Glascow G3 8EP
Ernst & Young (Hellas) S.A. -- $248,675
11 Th Km National Road Athens
Lamia, GR 14451
Metamorfosis, Athens Greece
Ulysses Systems UK Limited -- $244,660
C/O Ulysses Hellas SA
23 Aghiou Spyridonos street 18535
Piraeus
Greece
Seward & Kissel LLP -- $176,746
Orrick, Herrington & Sutcliffe LLP -- $171,916
Baluco S.A. -- $155,305
Tuzla Shipyard -- $143,333
Amphitron- Group of Companies -- $128,092
American Bureau of Shipping -- $117,898
Vanos S.A. -- $87,608
Hill Dickinson LLP -- $84,817
Capital Link, Inc. -- $68,000
Gulf Marine & Industries Supplies -- $62,108
(Hellas), Inc.
Saacke GMBH -- $57,469
Stavros Kassidiaris S.A. -- $53,742
Cosco (Shanghai) Shipyard Co. Ltd -- $53,700
Associated Marine Adjusters -- $51,023
Cosmos Marine Management SA -- $49,853
Jotun Paints (Europe) Ltd -- $49,636
Maersk Broker K/S -- $49,223
Moran Shipping Agencies, Inc. -- $40,651
Aktina Travel -- $39,923
The International Association -- $38,046
of Independent Tanker Owners
Chugoku Paints Ltd -- $37,262
Aalborg Industries A/S -- $34,161
Maymar Marine Supply -- $33,864
Lloyds Register Inspection Limited -- $32,896
O'Briens Response Management Inc. -- $31,361
Gulf Marine & Industries Supplies -- $30,498
Inc.
Inchape Shipping Services -- $29,655
OPTI CANADA: To Pursue Restructuring Agreement with Bondholders
---------------------------------------------------------------
OPTI Canada Inc. has reached agreement with a committee of holders
of the Company's 7.875 percent Senior Secured Notes due 2014 and
8.25 percent Senior Secured Notes due 2014 on a restructuring of
the Company's balance sheet, and investment of $375 million of new
equity into the Company. Taken together, these transactions will
materially improve the Company's total leverage and liquidity.
Today, the Company commenced proceedings in the Court of Queen's
Bench of Alberta under the Companies' Creditors Arrangement Act to
implement the restructuring. Holders of over 50 percent of the
Secured Notes have executed Support Agreements pursuant to which
they have agreed to support and vote for the restructuring plan.
The restructuring provides for the conversion of all Secured Notes
into common equity in the form of new common shares of OPTI. The
new common share investment will be offered to all holders of
Secured Notes via a rights offering. Certain of the Supporting
Noteholders have committed to subscribe for any rights not
exercised, acting as a backstop to the rights offering. As a
condition of the restructuring, the Company's 9.0 percent First
Lien Senior Secured Notes due 2012 and 9.75 percent First Lien
Senior Secured Notes due 2013 are to be refinanced prior to
closing. OPTI's trade payables and employee obligations will
remain unaffected by the restructuring and will be paid or
satisfied in the ordinary course by OPTI.
Holders of OPTI's existing common shares will be issued warrants
to acquire new common shares of the Company and all of OPTI's
existing common shares will be cancelled. The warrants in the
aggregate give holders the right to purchase approximately 20
percent of the Company's post restructuring new common shares. The
strike price of the warrants has been set at a price where the new
common shares issued to Noteholders would, in aggregate, have a
value approximately equivalent to the aggregate face value of the
Secured Notes plus the accrued interest to August 31, 2011 plus
the amount of the new equity investment. The shareholder warrants
will expire seven years after the closing date of the
restructuring.
Additional details regarding the restructuring are contained in
the Recapitalization Term Sheet attached to this news release.
Copies of the Support Agreement and Commitment Letter entered into
with the Supporting Noteholders will be filed on SEDAR and
available on OPTI's website. These agreements provide that OPTI's
obligation to pursue and support the restructuring is subject to
OPTI's right to accept a superior proposal in certain conditions.
"The restructuring and new equity commitment we have negotiated is
indicative of the support of OPTI's Noteholders, who recognize the
long term value in the Company's asset base. The recapitalization
of our balance sheet will provide us with cash resources to
continue to advance operations at Long Lake, as well as to begin
development at Kinosis, with our operating partner, Nexen," said
Chris Slubicki, President and Chief Executive Officer of OPTI.
OPTI intends to return to court within the next month to set a
date for a Noteholder Meeting to occur in late September 2011 and
aims to complete the restructuring not later than December 1,
2011. The plan will be subject to Noteholder, regulatory and court
approval. Ernst & Young Inc. has been appointed as Monitor of
OPTI. The Company is being advised by Lazard Freres & Co. LLC and
Macleod Dixon LLP in connection with the restructuring. The
Supporting Noteholders are being advised by Canaccord Genuity
Corp. and Bennett Jones LLP.
About OPTI
OPTI Canada Inc. is a Calgary, Alberta-based company focused on
developing major oil sands projects in Canada. Our first project,
the Long Lake Project, has a design capacity for 72,000 barrels
per day (bbl/d), on a 100 percent basis, of SAGD (steam assisted
gravity drainage) oil production integrated with an upgrading
facility. The Upgrader uses our proprietary OrCrude(TM) process,
combined with commercially available hydrocracking and
gasification.
ORAGENICS INC: Draws $500,000 on KFLP Revolving Credit Facility
---------------------------------------------------------------
Oragenics, Inc., on July 8, 2011, again drew down on its existing
Credit Facility in the amount of $500,000 and executed a Revolving
Unsecured Promissory Note for such amount in favor of the Koski
Family Limited Partnership. The July Promissory Note matures on
July 30, 2012.
The Company and the KFLP originally entered into an Unsecured
Revolving Line of Credit on July 30, 2010. Pursuant to the Credit
Facility the Company was initially able to borrow up to $2,000,000
from the KFLP at LIBOR plus 6.0%. The term of the Credit Facility
was for twelve months commencing Aug. 1, 2010. The Company
borrowed $1,000,000 on each of Sept. 13, 2010, and Nov. 8, 2010.
On Jan. 24, 2011, the Company entered into a First Amendment to
the Credit Facility to increase the available borrowings from
$2,000,000 to $2,500,000 and simultaneously therewith the Company
drew on the Credit Facility, as amended by the First Amendment, to
borrow the additional $500,000 in available funds.
On Feb. 4, 2011, the Company entered into the Second Amendment to
the Credit Facility which (i) increased the available borrowing
under the Credit Facility by $2,500,000 from $2,500,000 to
$5,000,000 (ii) changed the due date of the amounts outstanding
and future borrowings from July 12, 2011, to July 30, 2012, (iii)
provided for the automatic conversion of any amounts borrowed and
outstanding under the Credit Facility into Company securities that
may be issued by the Company in subsequent securities offering,
and (iv) provided the KFLP with the right to put any undrawn
available amounts under the Credit Facility, as amended, to the
Company and thereby have a note issued to the KFLP. Between March
and June 2011, the Company borrowed an additional $2,000,000 under
the Credit Facility in $500,000 monthly increments for its working
capital and operational needs. The Credit Facility, as amended by
the Second Amendment, was limited to $500,000 draws per month and
the Company previously drew down on the Credit Facility in the
amount of $500,000 in each of March, April, May and June 2011.
On June 29, 2011, the Company entered into a Third Amendment to
the Credit Facility. As a result of the Third Amendment, the
Company increased its availability under the Credit Facility by
$2,000,000 from $5,000,000 to $7,000,000. Future draws of the
$2,000,000 in increased availability provided by the Third
Amendment to the Credit Facility are limited to $1,000,000
increments beginning no earlier than August 2011 and October 2011,
respectively. All other terms of the Credit Facility remained the
same.
With the July 2011 Promissory Note borrowing, the Company
currently has an aggregate of $5,000,000 outstanding and owed to
the KFLP under the Credit Facility, as amended, and $2,000,000 of
remaining availability.
A copy of the July 2011 Promissory Note is available at no charge
at http://is.gd/B3V2Ib
About Oragenics Inc.
Tampa, Fla.-based Oragenics, Inc. (OTC BB: ORNI)
-- http://www.oragenics.com/-- is a biopharmaceutical company
focused primarily on oral health products and novel antibiotics.
Within oral health, Oragenics is developing its pharmaceutical
product candidate, SMaRT Replacement Therapy, and also
commercializing its oral probiotic product, ProBiora3. Within
antibiotics, Oragenics is developing a pharmaceutical candidate,
MU1140-S and intends to use its patented, novel organic chemistry
platform to create additional antibiotics for therapeutic use.
The Company's balance sheet at March 31, 2011, showed $1.2 million
in total assets, $4.5 million in total liabilities, and a
stockholders' deficit of $3.3 million.
As reported in the TCR on April 5, 2011, Kirkland, Russ, Murphy &
Tapp, P.A., in Clearwater, Fla., expressed substantial doubt about
Oragenics' ability to continue as a going concern, following the
Company 2010 results. The independent auditors noted that the
Company has incurred recurring operating losses, negative
operating cash flows and has an accumulated deficit.
ORLANDO COUNTRY: Case Summary & 5 Largest Unsecured Creditors
-------------------------------------------------------------
Debtor: Orlando Country Aviation Services Inc
1320 Northridge Dr
Longwood, FL 32750
Bankruptcy Case No.: 11-10365
Chapter 11 Petition Date: July 8, 2011
Court: United States Bankruptcy Court
Middle District of Florida (Orlando)
Debtor's Counsel: Frank M Wolff, Esq.
WOLFF HILL MCFARLIN & HERRON PA
1851 West Colonial Drive
Orlando, FL 32804
Tel: (407) 648-0058
Fax: (407) 648-0681
E-mail: fwolff@whmh.com
Estimated Assets: $10,000,001 to $50,000,000
Estimated Debts: $1,000,001 to $10,000,000
The petition was signed by James PA Thompson, president.
Debtor's List of five Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
------ --------------- ------------
Doudney Companies Inc. $50,000
PO Box 266
Sanford, FL 32772-0266
TNT Earthworks, Inc. $45,000
301 N Highway 27, Ste F
Clermont, FL 34715
DAO Consultants $30,000
1110 E Marks St
Orlando, FL 32803
Fifth Third Bank credit card $10,000
Bio-Tech Consulting Inc. $9,148
Affiliate that filed separate Chapter 11 petition:
Petition
Debtor Case No. Date
------ -------- ----
Avion Pointe West LLC 11-10364 07/08/11
PEABODY ENERGY: Moody's Affirms 'Ba1' Corporate Family Rating
-------------------------------------------------------------
Moody's Investors Service has revised the outlook for Peabody
Energy Corporation to developing from stable. At the same time,
Moody's affirmed Peabody's ratings, including its Ba1 corporate
family rating. The change in outlook is in response to Peabody's
announcements regarding its indicative proposal, in concert with
ArcelorMittal, to acquire Macarthur Coal Limited and its selection
as part of the consortium for the development of the Tavan Tolgoi
coal mine project in Mongolia.
The developing outlook incorporates the many variables in each of
the Macarthur and Tavan Tolgoi transactions, including actual
investment amounts, funding and development capital expenditure
requirements that might exist at Macarthur. Assuming the new
company is able to acquire 60% of Macarthur, the cost to Peabody
would be approximately US$1.8 billion excluding transaction fees
and expenses. Given Peabody's $1.3 billion in cash as of March 31,
2011, its strong cash flow (the company has guided to $2.1-$2.5
billion in EBITDA for 2011), and its solid debt metrics, Peabody's
Ba1 corporate family rating may not be pressured were it to
proceed with both Macarthur and a 24% interest in Tavan Tolgoi.
But, too few details are known at this time to reach that
conclusion.
On July 4, 2011 the Mongolian government announced the purported
winning bidders for the development of the vast Tavan Tolgoi coal
reserves. Peabody would have a 24% interest in the project,
China's Shenhua 40% and a Russian-Mongolian group 36%. But, later
in the week, a representative of the Mongolian government said the
tender process was not final, raising uncertainty about this
elongated tender. In addition, there have been no details
reported, even at a high level, of what the scope of the Tavan
Tolgoi investment entails, how large the investment would be, or
what roles the winning bidders would play. Therefore, the nature
of Peabody's involvement and potential investment are not known
On July 11, 2011, Peabody and ArcelorMittal SA (rated Baa3)
announced that they had jointly submitted an indicative proposal
to Macarthur to acquire all of the shares of the company. Under
the proposal Macarthur shareholders would be offered a cash price
of A$15.50 per share through an off-market takeover offer by a
newly formed company owned 60% by Peabody and 40% by
ArcelorMittal. The proposed price implies a value for 100% of
Macarthur's equity of approximately A$4.7 billion (US$5 billion),
an approximate 40% premium to Macarthur's recent share price.
The proposal to Macarthur's board is non-binding and conditional
on the successful completion of due diligence. Any resulting offer
to Macarthur shareholders would be subject only to minimum 50.01%
acceptance, Australia's Foreign Investment Review Board approval
and other customary conditions and approvals.
The new company already has a 16% ownership interest in Macarthur
through ArcelorMittal's 16% shareholding. It is not known how
Macarthur's board or its other shareholders will react to the
Peabody-ArcelorMittal proposal. At March 31, 2011, Citic owned
24.3% and POSCO (rated A3) owned 7.1% of Macarthur's shares.
Over the next few weeks, Moody's will monitor developments and
obtain additional information to determine what action, if any, is
warranted.
The principal methodology used in rating Peabody was the Global
Mining Industry Methodology published in May 2009. Other
methodologies used include Loss Given Default for Speculative-
Grade Non-Financial Companies in the U.S., Canada and EMEA
published in June 2009.
Peabody Energy is the world's largest privately owned coal
company. In 2010, it sold 246 million tons of coal and had
revenues of $6.86 billion.
PLATINUM ENERGY: Pacific to Buy 7.34-Mil. Shares for $11-Mil.
-------------------------------------------------------------
Pacific International Group Holdings LLC announced the final
results of its cash tender offer for all of the outstanding shares
of common stock of Platinum Energy Resources, Inc., for $1.50 per
share in cash, which commenced on May 26, 2011, and expired at
5:00 p.m., New York City time, on July 8, 2011. Pacific has
accepted for payment all shares validly tendered and not withdrawn
pursuant to its tender offer for all outstanding shares of common
stock of Platinum. Pacific will purchase up to 7,343,513 shares
of Platinum's common stock, at a price of $1.50 per share, for an
aggregate purchase price of $11,015,269.
Based upon the final tabulation by BNY Mellon Shareholder
Services, the depositary for the offer, 7,343,513 shares were
properly tendered and not withdrawn. BNY Mellon Shareholder
Services will promptly issue payment for the shares validly
tendered and accepted for payment, and will promptly issue payment
for the shares that were tendered pursuant to a letter of
transmittal but without a stock certificate upon presentation of a
stock certificate for such shares or confirmation that such shares
have been re-issued in book-entry format and registered in the
name of Pacific.
About Platinum Energy
Houston, Tex.-based Platinum Energy Resources, Inc. --
http://www.platenergy.com/-- is an independent oil and gas
exploration and production company. The Company has approximately
37,000 acres under lease in relatively long-lived fields with
well-established production histories. The properties properties
are concentrated primarily in the Gulf Coast region in Texas, the
Permian Basin in Texas and New Mexico, and the Fort Worth Basin in
Texas.
The Company reported a net loss of $5.13 million on $20.40 million
of oil and gas sales for the year ended Dec. 31, 2010, compared
with a net loss of $32.02 million on $17.30 million of oil and gas
sales during the prior year.
The Company's balance sheet at March 31, 2011, showed $52.41
million in total assets, $23.34 million in total liabilities, not
subject to compromise, $5.10 million in total liabilities subject
to compromise, related to assets held for sale, and $23.96 million
total stockholders' equity.
GBH CPAs, PC, in Houston, Texas, 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
Dec. 31, 2009. The independent auditors noted that the
Company has experienced significant losses since inception and is
currently in default of its debt agreements.
The Company has incurred significant losses, resulting in
cumulative losses of $113,747,702 through Sept. 30, 2010. At
Sept. 30, 2010, the Senior Credit Facility balance was
approximately $5.15 million. The Company's current cash on hand
of $2,395,820 is not adequate to satisfy the debt. Also, the
Company has negative working capital of $8,168,992. Currently the
Company is looking at various ways of correcting these issues,
including exploring joint venture opportunities as well as a
thorough analysis of our specific assets for potential
divestiture. Further the Company has assets and liabilities that
could be affected by unfavorable outcomes of litigation in
progress.
POINT BLANK: Has Until Oct. 14 to Propose Chapter 11 Plan
---------------------------------------------------------
The Hon. Peter J. Walsh of the U.S. Bankruptcy Court for the
District of Delaware extended Point Blank Solutions, Inc., et
al.'s time to file and solicit acceptances for the proposed
chapter 11 plan until Oct. 14, 2011, and Dec. 14, respectively.
The Debtors' extended exclusive periods will be co-extensive with
the Official Committee of Unsecured Creditors in the Debtors'
case.
About Point Blank
Headquartered in Pompano Beach, Florida, Point Blank Solutions,
Inc. -- http://www.pointblanksolutionsinc.com/-- designs and
produces body armor systems for the U.S. Military, Government and
law enforcement agencies, as well as select international markets.
The Company maintains facilities in Pompano Beach, Florida, and
Jacksboro, Tennessee.
The Company's former chief executive officer and chief operating
officer were convicted in September 2010 of orchestrating a
$185 million fraud.
Point Blank Solutions, formerly DHB Industries, filed for
Chapter 11 protection (Bankr. D. Del. Case No. 10-11255) on
April 14, 2010. Laura Davis Jones, Esq., Alan J. Kornfeld, Esq.,
David M. Bertenthal, Esq., and Timothy P. Cairns, Esq., at
Pachulski Stang Ziehl & Jones LLP, serve as bankruptcy counsel to
the Debtor. Olshan Grundman Frome Rosenweig & Wolosky LLP serves
as corporate counsel. T. Scott Avila of CRG Partners Group LLC is
the restructuring officer. Epiq Bankruptcy Solutions serves as
claims and notice agent.
The U.S. Trustee has appointed an Official Committee of Unsecured
Creditors and a separate Official Committee of Equity Security
Holders in the case. Ian Connor Bifferato, Esq., and Thomas F.
Driscoll III, Esq., at Bifferato LLC; and Carmen H. Lonstein,
Esq., Andrew P.R. McDermott, Esq., and Lawrence P. Vonckx, Esq.,
at Baker & McKenzie LLP, serve as counsel for the Official
Committee of Equity Security Holders. Robert M. Hirsh, Esq., and
George P. Angelich, Esq., at Arent Fox LLP, serve as counsel to
the Creditors Committee, and Frederick B. Rosner, Esq., and Brian
L. Arban, Esq., at the Rosner Law Group LLC, serve as co-counsel.
PRO-TRAK TRAILERS: Voluntary Chapter 11 Case Summary
----------------------------------------------------
Debtor: Pro-Trak Trailers, Inc.
29875 US Highway 80
Wills Point, TX 75169
Bankruptcy Case No.:
Chapter 11 Petition Date: July 11, 2011
Court: U.S. Bankruptcy Court
Eastern District of Texas (Tyler)
Debtor's Counsel: Howard Marc Spector, Esq.
SPECTOR & JOHNSON, PLLC
12770 Coit Road, Suite 1100
Dallas, TX 75251
Tel: (214) 365-5377
Fax: (214)237-3380
E-mail: hspector@spectorjohnson.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
The Company did not file a list of creditors together with its
petition.
The petition was signed by Seth Allen Davlin, president and
director.
PURSELL HOLDINGS: Court Approves Cassidy Turley as Leasing Agents
-----------------------------------------------------------------
The U.S. Bankruptcy Court for the Western District of Missouri
authorized Pursell Holdings, LLC, to employ Whitney Kerr, Jr. and
Cassidy Turley, Inc., as leasing agent.
As reported in the Troubled Company Reporter on June 29, 2011, the
Debtor owns four buildings on the land known as Buckeye Industrial
Park, located in Kansas City, Missouri. The four buildings are
all zoned M1-p and have these addresses:
-- 3901 NE 33rd Terrace;
-- 3939 NE 33rd Terrace;
-- 3950 NE 33rd Terrace; and
-- 4000 NE 33rd Terrace.
3901 is a precast concrete building with office front and drive-in
and dock access in the rear, allowing for two-story finish in the
front half of the building.
3939 is a precast concrete building, single story office
warehouse, with walk-in doors and office in the front and walk-in,
drive-in and dock access in the rear.
3950 and 4000 are precast concrete buildings, with drive-in access
on one side and dock doors on the opposite side.
The Debtor's primary business is leasing commercial space. The
Debtor plans to lease any vacant spaces in 3901, 3939, 3950 and
4000 to tenants.
Mr. Kerr and Cassidy will secure tenants for any vacant spaces in
Buckeye Industrial Park, at 3901, 3939, 3950 and 4000. The Debtor
relates that Mr. Kerr and Cassidy are not being employed to sell
Buckeye Industrial Park. They are also not being employed for
lease renewals.
The term of the agreement between the Debtor and Cassidy is from
Jan. 1, 2011, until Dec. 31.
Cassidy will receive a commission of 6% of the total value of the
lease upon execution of a lease. The payments are due upon
execution of a lease.
The Debtor added that the commercial leases generally require
first and last months rent plus a damage deposit upon execution of
the lease. Accordingly, the Debtor will have sufficient funds
upon execution of any lease to pay the amounts due to Cassidy.
To the best of the Debtor's knowledge, Mr. Kerr and Cassidy are
"disinterested" as that term is defined in Section 101(14) of the
Bankruptcy Code.
About Pursell Holdings
Liberty, Missouri-based Pursell Holdings, LLC, filed for Chapter
11 bankruptcy protection (Bankr. W.D. Mo. Case No. 11-40999) on
March 10, 2011. Frank Wendt, Esq., Brown & Ruprecht, P.C., serves
as the Debtor's bankruptcy counsel. In its schedules, the Debtor
disclosed $12,204,248 in assets and $23,382,741 in debts.
Affiliate Damon Pursell Construction Company filed a separate
Chapter 11 petition (Bankr. W.D. Mo. Case No. 10-44965) on
Sept. 15, 2010.
The U.S. Trustee said that a committee under 11 U.S.C. Sec. 1102
has not been appointed because an insufficient number of persons
holding unsecured claims against Pursell Holdings LLC have
expressed interest in serving on a committee. The U.S. Trustee
reserves the right to appoint such a committee should interest
develop among the creditors.
QIMONDA RICHMOND: Plan Confirmation Hearing Set for Sept. 19
------------------------------------------------------------
Lance Duroni at Bankruptcy Law360 reports that Qimonda Richmond
LLC won Delaware bankruptcy court approval Tuesday for a
disclosure statement related to its Chapter 11 liquidation plan,
clearing the Company to send the documents out for a creditor
vote.
U.S. Bankruptcy Judge Mary F. Walrath signed off on the statement
and set a Sept. 19 confirmation hearing for the liquidation plan,
which is co-sponsored by the company's official committee of
unsecured creditors.
If the Plan is confirmed, the Debtors remaining assets will be
liquidated on an orderly basis and proceeds will be distributed to
holders of Allowed Claims in accordance with the terms
of the Plan.
The Plan does not substantively consolidate the Debtors. Instead,
the Plan separately classifies claims against QR and QNA,
respectively. As discussed more fully in Article IV.C of
the Plan, the Debtors will establish the Liquidating Trusts to pay
all Allowed Claims entitled to receive cash distributions from the
respective Debtors.
The Plan designates 4 classes of claims and interests. Classes 1A
and 1B are Unimpaired and Deemed to Accept. General Unsecured
Claims under 2A and 2B are Impaired and Entitled to Vote.
Intercompany Claims under 3A and 3B are Impaired and Deemed to
Accept, and Equity Interests under 4A and 4B are Impaired and
Deemed to Reject.
Class Treatment % Recovery
1A - Secured Claims Will receive the collateral, 100%
Against QR Cash in an amount equal to
(Est. $2.1MM, the value of the collateral,
excluding or the treatment required
Secured Claim under section 1124(2) for
of Kingston) the Claim to be reinstated
or rendered Unimpaired.
1B - Secured Claims Will receive the collateral, 100%
Against QNA Cash in an amount equal to
(Est. $0.0) the value of the collateral,
or the treatment required
under section 1124(2) for
the Claim to be reinstated
or rendered Unimpaired.
2A - General Will receive Pro Rata Share
Unsecured of the QR Unsecured Creditor
Claims Against Liquidating Trust Share.
QR
Estimated Recovery is between 8.7% to 13.4% plus (a) any
recoveries on the QR Liquidating Trust Claims, including the
Kingston Lien Avoidance Action and the other Avoidance
Actions, (b) any distributions in respect of QR's allowed claim
against QAG and (c) distributions under the Employee Settlement
Agreement. Estimate Aggregate Claims Amount is between
$390 million and $600 million.
2B - General Will receive Pro Rata Share
Unsecured of the QNA Unsecured
Claims Against Creditor Liquidating Trust
QNA Share.
Estimated Recovery is between 6.1% to 11.1% plus (a) any
recoveries on the QNA Liquidating Trust Claims, including the
QNA-Kingston Adversary Proceeding, the other Avoidance Actions
and certain Other A/R Recovery Actions, (b) any distributions in
respect of QNA's allowed claim against QAG or Patent Proceeds
under the QAG Global Settlement; and (c) distributions on QNA's
Intercompany Claim against QR.
3A - Intercompany QNA's Allowed Unsecured Same as
Claims of QNA Claim will be included in Class 2A
against QR Class 2A and receive Pro Recovery.
(Est. - $28.4MM) Rata Share of the QR
Unsecured Creditor
Liquidating Trust Share.
3B - Intercompany Because the Debtor's books N.A.
Claims of QR and records do not reflect
against QNA the existence of any Claims
(Est. - $0.0) of QR against QNA, and the
the Debtors and the
Committee do not believe QR
has any such valid Claims,
there will be no Allowed
Claims of QR against QNA
under the Plan.
4A - Equity Holders of Equity Interests 0%
Interests in QR in QR will not receive or
retain any property under
the Plan in respect of such
Equity Interests.
4B - Equity Holders of Equity Interests 0%
Interests in in QNA will not receive or
QNA retain any property under
the Plan in respect of such
Equity Interests.
The cash available in QR's estate to fund the Plan and the QR
Liquidating Trust will come from: (a) the remaining net Cash
proceeds QR received from the sale of its assets, together with
any interest thereon; (b) any recoveries on the QR Liquidating
Trust Claims, including without limitation the Kingston Lien
Avoidance Action, the IRB Avoidance Action and other Avoidance
Actions; (c) any distributions in respect of QR's allowed claim in
the QAG insolvency proceeding or in respect of the Employee
Settlement Agreement; and (d) a Cash payment of approximately
$218,750 from a proposed settlement with an affiliate.
QR currently estimates that, as of the Effective Date (which, for
this purpose, is assumed to occur on Oct. 15, 2011), it will have
available Cash of $70.6 million, not including restricted Cash of
$42.5 million held in respect of the Kingston Lien Avoidance
Action ($40.4 million) and certain Secured Claims ($2.1 million).
The cash available in QNA's estate to fund the Plan and the QNA
Liquidating Trust will come from: (a) the remaining net Cash QNA
has from the collection of its receivables and the collection of
the G2 Arbitration Award, together with any interest thereon; (b)
any recoveries from the QNA Liquidating Trust Claims, including
without limitation the QNA-Kingston Adversary Proceeding or other
collection actions, and any Avoidance Recoveries from the
Avoidance Actions; (c) any distributions on QNA's Allowed Claim
against QR; (d) any distributions in respect of QNA's allowed
claim in the QAG insolvency proceeding or in respect of Patent
Proceeds under the QAG Global Settlement; and (e) a Cash payment
of approximately $218,750 from a proposed settlement with an
affiliate. QNA currently estimates that, as of the Effective
Date, it will have available Cash of $21.3 million.
A copy of the Disclosure Statement is available at:
http://bankrupt.com/misc/qimondarichmond.DS.pdf
About Qimonda AG
Qimonda AG (NYSE: QI) -- http://www.qimonda.com/-- is a leading
global memory supplier with a diversified DRAM product portfolio.
The Company generated net sales of EUR1.79 billion in financial
year 2008 and had -- prior to its announcement of a repositioning
of its business -- approximately 12,200 employees worldwide, of
which 1,400 were in Munich, 3,200 in Dresden and 2,800 in
Richmond, Va.
Qimonda AG commenced insolvency proceedings in a local court in
Munich, Germany, on Jan. 23, 2009. On June 15, 2009, QAG filed
a petition (Bankr. E.D. Va. Case No. 09-14766) for relief under
Chapter 15 of the U.S. Bankruptcy Code.
Qimonda North America Corp., an indirect and wholly owned
subsidiary of QAG, is the North American sales and marketing
subsidiary of QAG. QNA is also the parent company of Qimonda
Richmond LLC. QNA and QR sought Chapter 11 protection (Bankr.
D. Del. Case No. 09-10589) on Feb. 20, 2009. Mark D. Collins,
Esq., Michael J. Merchant, Esq., and Lee E. Kaufman, Esq., at
Richards Layton & Finger PA, in Wilmington Delaware; and Mark
Thompson, Esq., Morris J. Massel, Esq., and Terry Sanders, Esq.,
at Simpson Thacher & Bartlett LLP, in New York City, represent the
Debtors as counsel. Roberta A. DeAngelis, the United States
Trustee for Region 3, appointed seven creditors to serve on an
official committee of unsecured creditors. Jones Day and Ashby &
Geddes represent the Committee. In its bankruptcy petition,
Qimonda Richmond, LLC, estimated more than US$1 billion in assets
and debts. The information, the Debtors said, was based on
Qimonda Richmond's financial records which are maintained on a
consolidated basis with Qimonda North America Corp.
QR PROPERTIES: Briefs in Webster Bank Request Due on July 14
------------------------------------------------------------
The U.S. Bankruptcy Court for the District of Massachusetts has
ruled that briefs related to Webster Bank National Association's
request for relief from the automatic stay in the Chapter 11 case
of QR Properties LLC is due on July 14, 2011.
Templeton, Massachusetts-based QR Properties, LLC, filed for
Chapter 11 bankruptcy protection (Bankr. D. Mass. Case No. 10-
45514) on Nov. 3, 2010. Joseph G. Butler, Esq., at Barron &
Stadfeld, P.C., assists the Debtor in its restructuring effort.
The Debtor estimated its assets and debts at $10 million to
$50 million.
QUANTUM FUEL: Files Form S-3; Registers 4.81MM Common Shares
------------------------------------------------------------
Quantum Fuel Systems Technologies Worldwide, Inc., filed with the
U.S. Securities and Exchange Commission a Form S-3 registration
statement relating to resale by selling security holders of up to
4,810,681 shares of the Company's common stock, consisting of (i)
2,504,927 shares of common stock that were issued in a private
placement that the Company completed in June 2011 and (ii)
2,305,754 shares of the Company's common stock issuable upon the
exercise of warrants, of which 2,272,452 of such warrants were
issued in the June private placement and 33,302 of such warrants
were issued in a private placement that the Company completed in
May 2011. The Company is not selling any shares of common stock
in this offering and, therefore, will not receive any proceeds
from this offering. The Company will, however, receive proceeds
from the exercise price of the warrants if and when these warrants
are exercised by the selling security holders for cash. The
Company will bear all of the expenses and fees incurred in
registering the shares offered by this prospectus.
The Company's common stock is quoted on The Nasdaq Global Market
under the symbol "QTWW." The last reported sale price of the
Company's common stock on July 8, 2011, was $4.76 per share. The
Company's warrants are not and will not be listed for trading on
any exchange.
The shares included in this prospectus may be sold by the selling
security holders from time to time, in the open market, in
privately negotiated transactions, in an underwritten offering, or
a combination of methods, at market prices prevailing at the time
of sale, at prices related to such prevailing market prices or at
negotiated prices. The selling security holders may engage
brokers or dealers who may receive commissions or discounts from
the selling security holders. Any broker-dealer acquiring the
common stock from the selling security holders may sell these
securities in normal market making activities, through other
brokers on a principal or agency basis, in negotiated
transactions, to its customers or through a combination of
methods.
A full-text copy of the prospectus is available for free at:
http://is.gd/JIaice
About Quantum Fuel
Based in Irvine, California, Quantum Fuel Systems Technologies
Worldwide, Inc., is a fully integrated alternative energy company
and considers itself a leader in the development and production of
advanced clean propulsion systems and renewable energy generation
systems and services.
Quantum Fuel and its senior lender, WB QT, LLC, entered into a
Ninth Amendment to Credit Agreement and a Forbearance Agreement on
Jan. 3, 2011. The Senior Lender agreed to provide the Company
with a $5.0 million non-revolving line of credit, which may be
drawn upon at any time prior to April 30, 2011. Advances under
the New Line of Credit do not bear interest -- unless an event of
default occurs, in which case the interest rate would be 10% per
annum -- and mature on April 30, 2011. The Senior Lender also
agreed to forbear from accelerating the maturity date for any
portion of the Senior Debt Amount and from exercising any of its
rights and remedies with respect to the Senior Debt Amount until
April 30, 2011.
The Company reported a net loss attributable to stockholders of
$11.03 million on $20.27 million of total revenue for the year
ended Apri1 30, 2011, compared with a net loss attributable to
stockholders of $46.29 million on $9.60 million of total revenue
during the prior year.
The Company's balance sheet at April 30, 2011, $71.97 million in
total assets, $33.39 million in total liabilities and $38.57
million in total equity.
Ernst & Young LLP, in Orange County, California, noted that
Quantum Fuel's recurring losses and negative cash flows combined
with the Company's existing sources of liquidity and other
conditions raise substantial doubt about the Company's ability to
continue as a going concern.
Possible Bankruptcy
The Company anticipates that it will need to raise a significant
amount of debt or equity capital in the near future in order to
repay certain obligations owed to the Company's senior secured
lender when they mature. As of June 15, 2011, the total amount
owing to the Company's senior secured lender was approximately
$15.5 million, which includes approximately $12.5 million of
principal and interest due under three convertible promissory
notes that are scheduled to mature on Aug. 31, 2011, and a $3.0
million term note that is potentially payable in cash upon demand
beginning on Aug. 1, 2011, if the Company's stock is below $10.00
at the time demand for payment is made. If the Company is unable
to raise sufficient capital to repay these obligations at maturity
and the Company is otherwise unable to extend the maturity dates
or refinance these obligations, the Company would be in default.
The Company said it cannot provide any assurances that it will be
able to raise the necessary amount of capital to repay these
obligations or that it will be able to extend the maturity dates
or otherwise refinance these obligations. Upon a default, the
Company's senior secured lender would have the right to exercise
its rights and remedies to collect, which would include
foreclosing on the Company's assets. Accordingly, a default would
have a material adverse effect on the Company's business and, if
the Company's senior secured lender exercises its rights and
remedies, the Company would likely be forced to seek bankruptcy
protection.
QUINCY MEDICAL: Section 341(a) Meeting Slated for Aug. 2
--------------------------------------------------------
The U.S. Trustee for Region 1 will convene a meeting of creditors
of Quincy Medical Center Inc. and its debtor-affiliates on Aug. 2,
2011, at 02:00 p.m., at Worcester U. S. Trustees Office, 446 Main
Street, 1st Floor in Massachusetts.
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 Quincy Medical
Quincy Medical Center, Inc., doing business as Quincy Hospital,
together with two affiliates, sought Chapter 11 protection (Bankr.
D. Mass. Case No. 11-16394) on July 1, 2011. John T. Morrier,
Esq., at Casner & Edwards, LLP, in Boston, serves as counsel to
the Debtors.
Quincy disclosed assets of $73 million and liabilities of $79.4
million. Debt includes $56.4 million owing on secured bonds
issued through a state health-care finance agency. There is
another $2.5 million secured obligation owing to Boston Medical
Center Corp. Accrued liabilities are $18.2 million.
QUINCY MEDICAL: Taps Casner & Edwards as Chapter 11 Counsel
-----------------------------------------------------------
Quincy Medical Center Inc. and its debtor-affiliates ask the U.S.
Bankruptcy Court for the District of Massachusetts for permission
to employ Casner & Edwards LLP as Chapter 11 counsel to provide
legal advice with respect to the Debtors' powers and duties as
debtor-in-possession in the continued operations of their business
and management of their property.
The firm will charge the Debtors based on the hourly rates of its
professionals:
Partners and of counsel $295 to $425
Associates $200 to $300
Paralegals $95 to $150
The Debtors assure the Court that the firm is a "disinterested
person" within the meaning of Section 101(14) of the Bankruptcy
Code.
Quincy Medical Center, Inc., doing business as Quincy Hospital,
together with two affiliates, sought Chapter 11 protection (Bankr.
D. Mass. Case No. 11-16394) on July 1, 2011. John T. Morrier,
Esq., at Casner & Edwards, LLP, in Boston, serves as counsel to
the Debtors.
Quincy disclosed assets of $73 million and liabilities of $79.4
million. Debt includes $56.4 million owing on secured bonds
issued through a state health-care finance agency. There is
another $2.5 million secured obligation owing to Boston Medical
Center Corp. Accrued liabilities are $18.2 million.
QUINCY MEDICAL: Court Approves Epiq Bankruptcy as Claims Agent
--------------------------------------------------------------
The U.S. Bankruptcy Court for the District of Massachusetts
authorized Quincy Medical Center Inc. and its debtor-affiliates to
employ Epiq Bankruptcy Solutions LLC as claims, noticing, and
balloting agent.
The firm will assist the Debtors with the preparation and
distribution of all required notices in the Chapter 11 cases,
among other things.
The firm will charge the Debtors based on the hourly rates of its
professionals:
Clerk $40 -$60
Case Manager $95-$145
IT/Programming $140-$190
Snr. Case Manager/ Consultant $165-$220
Senior Consultant $225-$275
The Debtors assure the Court that the firm is a "disinterested
person" within the meaning of Section 101(14) of the Bankruptcy
Code.
About Quincy Medical
Quincy Medical Center, Inc., doing business as Quincy Hospital,
together with two affiliates, sought Chapter 11 protection (Bankr.
D. Mass. Case No. 11-16394) on July 1, 2011. John T. Morrier,
Esq., at Casner & Edwards, LLP, in Boston, serves as counsel to
the Debtors.
Quincy disclosed assets of $73 million and liabilities of $79.4
million. Debt includes $56.4 million owing on secured bonds
issued through a state health-care finance agency. There is
another $2.5 million secured obligation owing to Boston Medical
Center Corp. Accrued liabilities are $18.2 million.
QUINCY MEDICAL: Selects Navigant Capital as Financial Advisor
-------------------------------------------------------------
Quincy Medical Center Inc. and its debtor-affiliates ask the U.S.
Bankruptcy Court for the District of Massachusetts for permission
to employ Navigant Capital Advisor LLC and Navigant Consulting
Inc. as financial advisor.
The firm will provide strategic alternative and restructuring
support, and operating and financial review and support services.
The firm will receive a monthly fee of $75,000. The firm is
entitled to be paid a deferred fee of $925,000 upon closing of a
proposed sale or other restructuring transaction.
The Debtors assure the Court that the firm is a "disinterested
person" within the meaning of Section 101(14) of the Bankruptcy
Code.
About Quincy Medical
Quincy Medical Center, Inc., doing business as Quincy Hospital,
together with two affiliates, sought Chapter 11 protection (Bankr.
D. Mass. Case No. 11-16394) on July 1, 2011. John T. Morrier,
Esq., at Casner & Edwards, LLP, in Boston, serves as counsel to
the Debtors.
Quincy disclosed assets of $73 million and liabilities of $79.4
million. Debt includes $56.4 million owing on secured bonds
issued through a state health-care finance agency. There is
another $2.5 million secured obligation owing to Boston Medical
Center Corp. Accrued liabilities are $18.2 million.
QUINCY MEDICAL: Proposes to Employ Bello Black as Labor Counsel
---------------------------------------------------------------
Quincy Medical Center Inc. and its debtor-affiliates ask the U.S.
Bankruptcy Court for the District of Massachusetts for permission
to employ Bello, Black & Welsh LLP as special counsel for labor
employment matters.
The firm will charge the Debtors based on the hourly rates of its
professionals:
Partners $325-$425
Associates $265-$300
Clerks $125
Paralegals $85-$150
The Debtors assure the Court that the firm is a "disinterested
person" within the meaning of Section 101(14) of the Bankruptcy
Code.
About Quincy Medical
Quincy Medical Center, Inc., doing business as Quincy Hospital,
together with two affiliates, sought Chapter 11 protection (Bankr.
D. Mass. Case No. 11-16394) on July 1, 2011. John T. Morrier,
Esq., at Casner & Edwards, LLP, in Boston, serves as counsel to
the Debtors.
Quincy disclosed assets of $73 million and liabilities of $79.4
million. Debt includes $56.4 million owing on secured bonds
issued through a state health-care finance agency. There is
another $2.5 million secured obligation owing to Boston Medical
Center Corp. Accrued liabilities are $18.2 million.
RAY ANTHONY: Amends Stipulation to Sell Remaining Cranes
--------------------------------------------------------
Ray Anthony International LLC and People's Capital and Leasing
Corp. have entered into a stipulation amending a previously
approved stipulation by the U.S. Bankruptcy Court for the Western
District of Pennsylvania.
On Nov. 9, 2010, People's Capital and the Debtor entered into a
stipulation for adequate protection payments or relief from
automatic stay on behalf of People's Capital and Leasing Corp.
Pursuant to the Stipulation, the Debtor was required to surrender
possession of (1) One (1) 2002 Terex/American HC-275, S/N AC3909
equipped with 180' 92 HI Boom, 60' #16 HL and one (1) new Terex 25
Ton, Rough Terrain Crane, Model CD225, Serial No. 14998 to
People's Capital on February 8, 2011 or until the Remaining Cranes
have been sold, whichever is the earliest.
Pursuant to the Stipulation, the Debtor agreed that if it had not
sold the Remaining Cranes on or before Feb. 8, 2011 or missed one
adequate protection payment, People's Capital is entitled to
immediate relief from the automatic stay to dispose of the
Remaining Cranes.
The Remaining Cranes were not returned or sold on or before
Feb. 8, 2011.
The Debtor has recently informed People's Capital that it has
located a purchaser for the Remaining Cranes who will pay People's
Capital $830,000.
Accordingly, the Parties agreed to amend the Stipulation.
In the Amended Stipulation, the Parties agreed that the Debtor
will be permitted to sell the Remaining Cranes to a bona fide good
faith purchaser for not less than $830,000.
The Sale Price will be paid directly by the Purchaser to People's
Capital via wire transfer according to these procedures:
(a) payment of $450,000 on or before June 20, 2011; and
(b) payment of $380,000 on or before July 29, 2011.
The parties agree that the initial payment of $450,000 will be a
non-refundable deposit.
If People's Capital receives the Sale Price, it will release its
lien against the Remaining Cranes.
If either of the Payments is not received by People's Capital
pursuant to the terms of the Amended Stipulation, the Debtor
agrees to surrender the Remaining Cranes to People's Capital to
take immediate possession thereof for disposition.
People's Capital reserves all right to file an unsecured claim
against Debtor's estate for any deficiency.
At all times, the Debtor will remain in physical possession or
control of the Remaining Cranes and is required to disclose the
location of the Remaining Cranes to People's Capital, and will
obtain People's Capital's consent prior to moving or transporting
the Remaining Cranes to a different location.
West Mifflin, Pennsylvania-based Ray Anthony International, Inc.,
filed for Chapter 11 bankruptcy protection (Bankr. W.D. Pa. Case
No. 10-26576) on Sept. 15, 2010. The Debtor estimated assets
and debts at $50 million to $100 million as of the Chapter 11
filing. Affiliate Ray G. Anthony filed a separate Chapter 11
petition (Bankr. W.D. Pa. Case No. 10-26552) on Sept. 14, 2010.
ROCK & REPUBLIC: Great American Hosts Live Webcast Auction July 26
------------------------------------------------------------------
Vehicles including a rare 1965 Shelby Mustang GT 350 SR, along
with racks of denim jeans and thousands of yards of denim and
leather material will be on sale during a live Webcast auction
beginning at 10:00 a.m. (PDT) Tuesday, July 26 hosted by Great
American Group, LLC, a leading provider of asset disposition,
valuation and appraisal services.
"But this auction is unique given some of the vehicles available
for auction."
Auction items can be inspected from 10 a.m. to 4 p.m. (PDT)
Monday, July 25 at 7355 E. Slauson Ave. in Commerce, CA.
A wholesaler and retailer of what it called "avant-garde" apparel,
Rock & Republic Enterprises, Inc. filed for Chapter 11
reorganization in April 2010. Greensboro, North Carolina-based VF
Corporation, the manufacturer of Lee and Wrangler jeans, won court
approval to buy the company's brand names and intellectual
property for $57 million.
"Since Rock & Republic was a denim jean manufacturer, auction
items will include jeans, clothing materials, threads, garment
machinery, sewing machines, and warehouse and garment racking,"
said Roy Gamityan, senior vice president/Industrial with Great
American Group. "But this auction is unique given some of the
vehicles available for auction."
In addition to the 1965 Shelby Mustang GT 350 SR, other vehicles
include a 2006 Bentley Continental Flying Spur, a 2006 Aston
Martin V8 Vantage, two 2006 Volkswagen Touaregs, a 2008 GMC Sierra
1500 Truck, a 2005 Ford E450 Box Van, a 2005 Ford E350 Van, and a
2006 Mercedes Benz C230. Other auction items include Mac and Dell
computers, printers and tradeshow displays.
Great American Group was appointed to conduct the auction by order
of the Trust Plan Administrator.
Founded by cyclist Michael Ball in 2002, Rock & Republic's
clothing and accessories were sold through upscale retailers and
three company stores. In 2009, the company cited revenues of
$97.9 million before filing for bankruptcy in Manhattan in 2010.
The bankruptcy judge signed a confirmation order on March 23, 2011
approving Rock & Republic's Chapter 11 plan. VF Corp. announced it
had signed a long-term licensing deal with Kohl's Corporation to
carry the Rock & Republic brand.
About Great American Group
Great American Group, LLC, is a leading provider of asset
disposition solutions and valuation and appraisal services to a
wide range of retail, wholesale and industrial clients, as well as
lenders, capital providers, private equity investors and
professional service firms. Great American Group has offices in
Atlanta, Boston, Chicago, Dallas, London, Los Angeles, New York
and San Francisco.
About Rock & Republic
Rock & Republic Enterprises, Inc., was a wholesale and retail
apparel company specializing in an avant-garde and distinctive
line of clothing. Rock & Republic Enterprises, Inc., and Triple
R, Inc., filed for Chapter 11 bankruptcy (Bankr. S.D.N.Y. Case
Nos. 10-11728 and 10-11729) on April 1, 2010, represented by
attorneys at Todtman, Nachamie, Spizz & Johns, P.C. in New York.
Manderson, Schaefer & McKinlay, LLP, was the Company's special
corporate counsel. Rosen Seymour Shapss Martin & Company LLC
served as the Debtors' Forensic Accountants. Donlin Recano served
as claims and noticing agent. The Company estimated $50 million
to $100 million in assets, and $10 million to $50 million in
liabilities.
The Official Committee of Unsecured Creditors was represented by
Robert M. Hirsh, Esq., at Arent Fox LLP, and Schuyler G. Carroll,
Esq., at Perkins Coie LLP, as bankruptcy counsel.
In December 2010, VF Corporation, Rock and Republic and The
Official Committee of Unsecured Creditors executed an asset
purchase agreement for VF to acquire the trademarks and
intellectual property -- but not the business operations or retail
stores -- of Rock and Republic. VF is 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).
Subsequently, the Debtors, the Committee and VF proposed a plan of
liquidation for Rock & Republic predicated upon the VF deal. VF
agreed to purchase the Debtors' IP assets for $57 million. The
inventory, stores and other assets that VF did not buy were
transferred to a liquidating trust under the plan.
On March 23, 2011, the Bankruptcy Court entered an order
confirming the Amended Joint Consolidated Joint Chapter 11 Plan
for Rock & Republic and Triple R. The Plan became effective on
March 30 and David K. Gottlieb was appointed as the Liquidating
Trust Administrator.
RVTC LIMITED: Section 341(a) Meeting Set for Aug. 1
---------------------------------------------------
The U.S. Trustee for Region 7 will convene a meeting of creditors
of RVTC Limited Partnership on Aug. 1, 2011 at 08:30 a.m., at San
Antonio 1st Floor, Conference Room #1, Room 105A, in San Antonio,
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.
Based in San Antonio, Texas, RVTC Limited Partnership fka Fair
Prospects, L.P., filed for Chapter 11 Bankruptcy Protection
(Bankr. W.D. Tex. Case No. 11-52240) on June 29, 2011. Judge Leif
M. Clark presides over the case. Thomas Rice, Esq., at Cox smith
Matthews Incorporated, represents the Debtor. The Debtor
estimated both assets and debts of between $10 million and
$50 million.
RVTC LIMITED: Proposes to Employ Integra Realty as Appraiser
------------------------------------------------------------
RVTC Limited Partnership asks the Hon. Leif M. Clark of the U.S.
Bankruptcy Court for the Western District of Texas to employ
Integra Realty Resources-San Antonio as appraiser to prepare an
appraisal of the Debtor's real property asset.
The firm will be compensated in this manner:
a) The total fee for completion of the appraisal as requested
by the Debtor will be $10,000, of which Debtor will pay an
immediate retainer of $5,000. The entire fee, including the
retainer, shall not be either paid or applied by Integra
until completion of the appraisal.
b) In connection with the appearance at any deposition or
hearing, Integra will charge the following hourly rates:
i) Martyn C. Glen $350 per hour; and
ii) Senior Analyst $175 per hour.
The Debtor assures the Court that the firm is a "disinterested
person" within the meaning of Section 101(14) of the Bankruptcy
Code.
Based in San Antonio, Texas, RVTC Limited Partnership fka Fair
Prospects, L.P., filed for Chapter 11 Bankruptcy Protection
(Bankr. W.D. Tex. Case No. 11-52240) on June 29, 2011. Judge Leif
M. Clark presides over the case. Thomas Rice, Esq., at Cox smith
Matthews Incorporated, represents the Debtor. The Debtor
estimated both assets and debts of between $10 million and
$50 million.
RVTC LIMITED: Gets Interim Order to Hire Cox Smith as Attorney
--------------------------------------------------------------
The Hon. Leif M. Clark of the U.S. Bankruptcy Court for the
Western District of Texas issued an interim order to employ Cox
Smith Matthews Incorporated as attorney of RVTC Limited. The firm
will execute faithfully the Debtor's duties as debtor and debtor-
in-possession.
The primary attorneys and paralegal within Cox Smith who will
represent the Debtor and their current standard hourly rates:
Deborah D. Williamson, Esq. Shareholder $580
Thomas Rice, Esq. Shareholder $385
Stephen K. Lecholop II, Esq. Associate $235
Deborah Andreacchi Paralegal $180
The Debtor assures the Court that the firm is a "disinterested
person" within the meaning of Section 101(14) of the Bankruptcy
Code.
Based in San Antonio, Texas, RVTC Limited Partnership fka Fair
Prospects, L.P., filed for Chapter 11 bankruptcy protection
(Bankr. W.D. Tex. Case No. 11-52240) on June 29, 2011. Judge Leif
M. Clark presides over the case. Thomas Rice, Esq., at Cox smith
Matthews Incorporated, represents the Debtor. The Debtor
estimated both assets and debts of between $10 million and
$50 million.
SCI REAL ESTATE: Lease Decision Period Extended Until Sept. 9
-------------------------------------------------------------
The U.S. Bankruptcy Court for the Central District of California
extended until Sept. 9, 2011, the deadline by which SCI Real
Estate Investments, LLC, and Secured California Investments, Inc.,
must assume, assume and assign, or reject the sublease pursuant to
Section 365(d)(4) of the Bankruptcy Code.
As reported in the Troubled Company Reporter on June 29, on
Sept. 11, 2007, Secured California entered with Tenet Healthcare
Corporation for the 10th floor of the building located at 11620
Wilshire Boulevard, Los Angeles, California. As provided in the
sublease, the sublessor leases the location in accordance
with that certain Office Lease dated March 19, 2002, between
11620 Wilshire Boulevard, LLC (landlord). The subleased space
serves as the Debtors' administrative offices. The sublease
terminates on the earlier of (a) Nov. 30, 2012, or (b) the date
the primary lease terminates.
The Debtors are negotiating a consensual plan with their creditors
and are not presently in a position to determine whether to
assume, assume and assign ore reject the sublease at this time.
About SCI Real Estate Investments
Los Angeles, California-based SCI Real Estate Investments,
LLC, filed for Chapter 11 bankruptcy protection (Bankr. C.D.
Calif. Case No. 11-15975) on Feb. 11, 2011. Jeffrey W. Dulberg,
Esq., at Pachulski Stang Ziehl & Jones LLP, serves as the Debtor's
bankruptcy counsel. Haskell & White LLP as accountant. Kennerly,
Lamishaw & Rossi LLP as special real estate counsel. The Debtor
disclosed $55,431,222 in assets and $69,514,028 in liabilities as
of the Chapter 11 filing.
Peter C. Anderson, the U.S. Trustee for Region 16, appointed three
members to the official committee of unsecured creditors in the
Chapter 11 cases of SCI Real Estate Investments.
SEASON'S AT BIRDNEK: Sec. 341 Creditors' Meeting Set for July 28
----------------------------------------------------------------
W. Clarkson McDow, Jr., the U.S. Trustee for Region 4, will hold a
Meeting of Creditors pursuant to 11 U.S.C. 341(a) in the
bankruptcy case of The Season's at Birdnek Point, LLC, on July 28,
2011, at 1:00 p.m. at Office of the U.S. Trustee (Chapter 11), 200
Granby Street, Federal Building, Room 625, in Norfolk, Virginia.
Proofs of claim are due by Oct. 26, 2011. Complaint for
Determination of Dischargeability of Debt are due by Sept. 26,
2011.
The Season's at Birdnek Point, LLC, based in Virginia Beach,
Virginia, filed for Chapter 11 bankruptcy (Bankr. E.D. Va. Case
No. 11-72915) on June 26, 2011. Judge Frank J. Santoro presides
over the case. John D. McIntyre, Esq., at Wilson & McIntyre,
PLLC, serves as bankruptcy counsel. In its petition, the Debtor
estimated assets of $10 million to $50 million and debts of
$1 million to $10 million. The petition was signed by John
Mamoudis, its member/manager.
SEDONA DEVELOPMENT: Wants Access to Cash Collateral Until Sept. 30
------------------------------------------------------------------
Sedona Development Partners, LLC, and The Club at Seven Canyons,
LLC, ask the U.S. Bankruptcy Court for the District of Arizona for
authorization to use the cash collateral of Specialty Financial
and/or Specialty Trust, Inc., until Sept. 30, 2011.
Specialty claims that there exists a principal balance due and
owing under the loans in excess of $54,384,000. Specialty
purports to hold a security interest in the income as a result of
the loans.
Although the Debtors do not believe that the cash generated by
their operations and sought to be is, in fact, cash collateral,
they file the motion in an abundance of caution and to allow the
continuation of their operations until the time as the Court may
determine the nature and extent of Specialty's liens, if any
exist, in the Debtors' postpetition revenues.
The Debtors would use the revenues to pay the Debtors' ordinary
and necessary operating expenses.
About Sedona Development Partners
Sedona Development Partners owns an 18-hole golf course and
related properties, including luxury villas, a practice park,
range house, tennis courts and related facilities in Sedona,
Arizona, known generally as Seven Canyons. The Club at Seven
Canyons, LLC, operates the golf course and related facilities for
SDP. SDP is the manager and sole member of the Club.
Sedona Development Partners filed for Chapter 11 bankruptcy
protection on May 27, 2010 (Bankr. D. Ariz. Case No. 10-16711).
The Club At Seven Canyons filed a separate Chapter 11 petition
(Bankr. D. Ariz. Case No. 10-16714). Polsinelli Shughart PC
assists the Debtors in their restructuring efforts. Lender
Specialty Trust is represented by Joseph E. Cotterman, Esq., and
Nathan W. Blackburn, Esq., at Gallagher & Kennedy, P.A. Sedona
disclosed $29,171,168 in assets and $121,679,994 in liabilities.
SEDONA DEVELOPMENT: Wants Until Aug. 9 to Solicit Plan Acceptances
------------------------------------------------------------------
Sedona Development Partners, LLC, and The Club at Seven Canyons,
LLC, ask the U.S. Bankruptcy Court for the District of Arizona to
extend until Aug. 9, 2011, the period in which the Debtors have
the exclusive right to obtain acceptances of their plan of
reorganization dated June 17, 2011, and (ii) prohibiting any
creditors or other parties-in-interest from filing a competing
plan of reorganization.
The initial hearing on confirmation of the Debtor's Plan is set
for Aug. 9, at 10:30 a.m.
The Debtor says that pursuant to the Court's order dated April 7,
2011, the Court indicated in that there will be no more
extensions.
The Debtor relates that in the subsequent hearings, the Court
indicated that it would entertain a further extension of the
exclusive solicitation period due to certain objecting parties'
continuing objections to the disclosure statement and the delays
occasioned by the objections.
The Debtor adds that the primary parties that objected to the
Disclosure Statement have now indicated that they no longer intend
to object to the Disclosure Statement.
Creditors and parties-in-interest Specialty Trust, Inc., a
Maryland corporation; Specialty Mortgage Corporation, a Nevada
corporation and Specialty Financial, a Nevada corporation, object
to the Debtor's motion to further extend exclusivity period
because it is preparing to propose a competing reorganization
plan.
Specialty Financial is represented by:
Joseph E. Cotterman, Esq.
GALLAGHER & KENNEDY, P.A.
2575 East Camelback Road
Phoenix, Arizona 85016-9225
Tel: (602) 530-8000
Fax: (602) 530-8500
E-mail: jec@gknet.com
About Sedona Development Partners
Sedona Development Partners owns an 18-hole golf course and
related properties, including luxury villas, a practice park,
range house, tennis courts and related facilities in Sedona,
Arizona, known generally as Seven Canyons. The Club at Seven
Canyons, LLC, operates the golf course and related facilities for
SDP. SDP is the manager and sole member of the Club.
Sedona Development Partners filed for Chapter 11 bankruptcy
protection (Bankr. D. Ariz. Case No. 10-16711) on May 27, 2010.
The Club At Seven Canyons filed a separate Chapter 11 petition
(Bankr. D. Ariz. Case No. 10-16714). John J. Hebert, Esq., Philip
R. Rudd, Esq., and Wesley D. Ray, Es., at Polsinelli Shughart PC,
in Phoenix, Ariz., assist the Debtors in their restructuring
efforts. Lender Specialty Trust is represented by Joseph E.
Cotterman, Esq., and Nathan W. Blackburn, Esq., at Gallagher &
Kennedy, P.A. Sedona disclosed $29,171,168 in assets and
$121,679,994 in liabilities.
SEDONA DEVELOPMENT: Initial Confirmation Hearing Set for Aug. 9
---------------------------------------------------------------
Judge Redfield T. Baum of the U.S. Bankruptcy Court for the
District of Arizona approved the disclosure statement explaining
the Second Amended Plan of Reorganization of Sedona Development
Partners, LLC, and The Club at Seven Canyons, LLC.
An initial hearing to consider confirmation of the Plan, and any
amendments thereto, will be held on August 9, 2011, at 10:30 a.m.
The hearing will be an initial hearing only, and will not entail
the presentation of evidence.
Objections to the confirmation of the Plan and ballots accepting
or rejecting the Plan must be submitted on or before August 2.
A full-text copy of the Disclosure Statement Order is available
for free at http://ResearchArchives.com/t/s?7677
About Sedona Development Partners
Sedona Development Partners owns an 18-hole golf course and
related properties, including luxury villas, a practice park,
range house, tennis courts and related facilities in Sedona,
Arizona, known generally as Seven Canyons. The Club at Seven
Canyons, LLC, operates the golf course and related facilities for
SDP. SDP is the manager and sole member of the Club.
Sedona Development Partners filed for Chapter 11 bankruptcy
protection (Bankr. D. Ariz. Case No. 10-16711) on May 27, 2010.
The Club At Seven Canyons filed a separate Chapter 11 petition
(Bankr. D. Ariz. Case No. 10-16714). John J. Hebert, Esq., Philip
R. Rudd, Esq., and Wesley D. Ray, Es., at Polsinelli Shughart PC,
in Phoenix, Ariz., assist the Debtors in their restructuring
efforts. Lender Specialty Trust is represented by Joseph E.
Cotterman, Esq., and Nathan W. Blackburn, Esq., at Gallagher &
Kennedy, P.A. Sedona disclosed $29,171,168 in assets and
$121,679,994 in liabilities.
SEQUENOM INC: Signs Sale and Supply Agreement with Illumina
-----------------------------------------------------------
Sequenom, Inc., on July 8, 2011, entered into a Sale and Supply
Agreement with Illumina Inc. pursuant to which the Company and its
subsidiaries will purchase laboratory equipment and consumables
that will be used for the Company's fetal chromosomal detection
applications, including a noninvasive test which is designed to
detect an overabundance of chromosome 21 in pregnant women, a
result associated with fetal Down syndrome. The Agreement
requires that the Company submits periodic binding forecasts for
consumables. Beginning in 2013, in the event that the Company
purchases less than a specified amount of consumables during any
calendar year, Illumina will be relieved of certain of its
obligations and representations under the Agreement, including
certain of Illumina's obligations with respect to pricing terms of
the consumables that the Company purchases. Additionally, the
Company and Illumina have agreed to work collaboratively toward
the Company's submission for regulatory approval of an in vitro
diagnostic product for the detection of fetal chromosomal
abnormalities. The Agreement will remain valid for a three-year
term, unless terminated earlier as provided for in the Agreement.
Either party may terminate the Agreement prior to expiration for
the uncured material breach of the Agreement by the other party or
upon the bankruptcy or insolvency of the other party.
About Sequenom
Sequenom, Inc. (NASDAQ: SQNM) -- http://www.sequenom.com/-- is a
life sciences company committed to improving healthcare through
revolutionary genetic analysis solutions. Sequenom develops
innovative technology, products and diagnostic tests that target
and serve discovery and clinical research, and molecular
diagnostics markets. The company was founded in 1994 and is
headquartered in San Diego, California.
Sequenom reported a net loss of $120.85 million on $47.45 million
of total revenue for the year ended Dec. 31, 2010, compared with a
net loss of $71.01 million on $37.86 million of total revenue
during the prior year.
Ernst & Young LLP of San Diego, California, in its audit report
attached to the 2010 financial statements, did not include a going
concern qualification for Sequenom. E&Y, in its report on the
2009 results, expressed substantial doubt against Sequenom's
ability as a going concern, noting that the Company "has incurred
recurring operating losses and does not have sufficient working
capital to fund operations through 2010."
The Company's balance sheet at March 31, 2011, showed
$162.60 million in total assets, $21.08 million in total
liabilities, and $141.52 million in total stockholders' equity.
SEQUENOM INC: FMR LLC Discloses 14.99% Equity Stake
---------------------------------------------------
In a Schedule 13G filing with the U.S. Securities and Exchange
Commission, FMR LLC and Edward C. Johnson 3d disclosed that they
beneficially own 14,848,645 shares of common stock of Sequenom
Inc. representing 14.990% of the shares outstanding. A full-text
copy of the filing is available for free at http://is.gd/jKW5bV
About Sequenom
Sequenom, Inc. (NASDAQ: SQNM) -- http://www.sequenom.com/-- is a
life sciences company committed to improving healthcare through
revolutionary genetic analysis solutions. Sequenom develops
innovative technology, products and diagnostic tests that target
and serve discovery and clinical research, and molecular
diagnostics markets. The company was founded in 1994 and is
headquartered in San Diego, California.
Sequenom reported a net loss of $120.85 million on $47.45 million
of total revenue for the year ended Dec. 31, 2010, compared with a
net loss of $71.01 million on $37.86 million of total revenue
during the prior year.
Ernst & Young LLP of San Diego, California, in its audit report
attached to the 2010 financial statements, did not include a going
concern qualification for Sequenom. E&Y, in its report on the
2009 results, expressed substantial doubt against Sequenom's
ability as a going concern, noting that the Company "has incurred
recurring operating losses and does not have sufficient working
capital to fund operations through 2010."
The Company's balance sheet at March 31, 2011, showed
$162.60 million in total assets, $21.08 million in total
liabilities, and $141.52 million in total stockholders' equity.
SHOPS AT PRESTONWOOD: To Hire Sayles Werbner as Litigation Counsel
------------------------------------------------------------------
The Shops at Prestonwood, LP seeks approval from the U.S.
Bankruptcy Court for the Northern District of Texas to employ
Sayles Werbner, PC as special litigation counsel to assist the
Debtor with litigation in relation to Pulte Homes of Texas LP v.
The Shops at Prestonwood, LP.
The firm can be reached at:
SAYLES WERBNER PC
4400 Renaissance Tower
1201 Elm Street
Dallas, Texas 75270
Tel: (214) 939 8700
Fax: (214) 939 8787
Compensation to Sayles Werbner will be paid either by affiliates
of the Debtor or out of property of the estate from time to time
and shall be computed based upon the hourly rate of the particular
attorneys and legal assistants who work on the case, all subject
to court approval as required under the Bankruptcy Code.
Sayles Werbner's services are important and necessary to assist
the Debtor in the prosecution of its claims against Pulte Homes of
Texas and American National Bank of Texas in the Pulte Lawsuit.
About The Shops at Prestonwood
Addison, Texas-based The Shops at Prestonwood, LP's primary assets
consist of approximately 144 residential townhome lots and an
additional 17.170 acres of residential undeveloped land located
within the Shops at Prestonwood subdivision in Denton County,
Texas.
The Debtor filed for Chapter 11 bankruptcy protection (Bankr. N.D.
Tex. Case No. 11-32209) on April 1, 2011. Melissa S. Hayward,
Esq., at Franklin Skierski Lovall Hayward LLP, serves as the
Debtor's bankruptcy counsel. The Debtor disclosed $18,200,000 in
assets and $14,151,239 in liabilities as of the Chapter 11 filing.
No creditors' committee, trustee nor examiner has been appointed
in the case.
SIGNATURE STYLES: Creditors Panel Opposes Patriarch Financing
-------------------------------------------------------------
The Official Committee of Unsecured Creditors in the Chapter 11
cases of Signature Styles, LLC, and its affiliated debtor,
Signature Styles Gift Cards, LLC, ask the U.S. Bankruptcy Court
for the District of Delaware to deny the Debtors' request to
obtain postpetition financing from Patriarch Partners Agency
Services, LLC and Zohar III Limited.
The Committee says that the DIP Facility will leave the estates
administratively insolvent while permitting Patriarch to
consummate a sale to itself and effectively retain its secured
indebtedness and equity interests in the Debtors.
The Debtors requested for authorization to obtain postpetition
financing pursuant to a debtor-in-possession credit providing for
a $7 million senior secured, super-priority revolving credit
facility.
The terms of the DIP loan includes:
-- A $7 million extension of credit to the Debtors. The budget
projected that the Debtors would only borrow approximately
$2 million until Sept. 3, 2011, with the majority of the
funding being used for restructuring costs.
-- A maturity date of Aug. 15, 2011.
-- Events of Defaults including:
* the Debtors fail to obtain (i) Bidding Procedures Order by
June 30, and (ii) sale order by Aug. 4; and
* the Court approves the sale of any material assets of the
Debtors to a purchaser other than Patriarch.
-- $450,000 for all of the Committee's professionals fees.
Accordingly, the Committee relates that the sale deadlines and
August 15th maturity date provided for in the DIP Credit Agreement
must be modified so that the Debtors have adequate time to conduct
a proper sale process. Not only will additional time assist in
effectuating a proper sale process, but it will also enable the
Committee to perform a proper investigation of the character and
validity of Patriarch's purportedly secured indebtedness and the
2009 LBO.
The Committee proposes that the sale deadlines contained in the
DIP Credit Agreement must be modified as:
Debtors' Proposed Committee's Proposed Event
Sale Deadline Sale Deadline
----------------- -------------------- -----
July 27 Aug. 26 Objection Deadline
for Sale Motion
July 29 Aug. 29 Bid Deadline
Aug. 1 Sept. 1 Auction
Aug. 3 Sept. 8/9 Sale Hearing
The Committee is represented by
Frederick B. Rosner, Esq.
Julia B. Klein, Esq.
THE ROSNER LAW GROUP LLC
824 N. Market Street, Suite 810
Wilmington, DE 19801
Tel: (302) 777-1111
Fax: (302) 220-1007
COOLEY LLP
Jay R. Indyke, Esq.
Jeffrey L. Cohen, Esq.
Brent Weisenberg, Esq.
Richelle Kalnit, Esq.
1114 Avenue of the Americas
New York, NY 10036
Tel: (212) 479-6000
Fax: (212) 479-6275
About Signature Styles
Signature Styles LLC, owner of the Spiegel catalog, filed a
Chapter 11 petition (Bankr. D. Del. Case No. 11-11733) on June 6,
2011, along with a deal to sell the business to affiliates of the
current owners and lenders.
New York-based Signature Styles, which filed for bankruptcy
together with its affiliates, disclosed assets of $48.6 million
and debt of $867.6 million. It purchased the Spiegel business for
$21.7 million at a foreclosure sale in June 2009. Debt includes
$37.2 million owing on a secured term loan and revolving credit.
Unsecured debt totals $35.3 million, which include $9.8 million
owing to trade suppliers and $23.2 million in customer
obligations. The lenders and owners are funds affiliated with
Patriarch Partners LLC.
Christopher A. Ward, Esq., at Polsinelli Shughart PC, in
Wilmington, Delaware, serves as counsel to the Debtor. Western
Reserve Partners LLC serves as investment bankers. Epiq Bankruptcy
Solutions, LLC, is the claims and notice agent.
A fund affiliated with Patriarch Partners LLC has an agreement to
buy the business in return for the assumption of specified debt,
including $30 million owing on the term loan and revolving credit.
The buyer also will honor some customer obligations. The
stalking-horse purchase agreement requires approval of bidding
procedures by July 7 and approval of a sale by Aug. 4.
Roberta A. Deangelis, United States Trustee for Region 3, under 11
U.S.C. SEC 1102(a) and (b), appointed the following amended
unsecured creditors who are willing to serve on the Official
Committee of Unsecured Creditors of Signature Styles LLC.
SMART-TEK SOLUTIONS: Amends Sept. 30 Quarterly Report
-----------------------------------------------------
Smart-Tek Solutions Inc. filed with the U.S. Securities and
Exchange Commission an amended Quarterly Report on Form 10-Q/A for
the quarter ended Sept. 30, 2010, which includes the Company's
restated consolidated balance sheets as of the three months then
ended Sept. 30, 2010, and 2009, and the related restated
consolidated statements of operations, cash flows and
stockholders' equity for the years then ended.
The Company and its consolidated wholly-owned subsidiary is
restating its previously issued consolidated financial statements
and related notes to the consolidated financial statements to
reflect the sale of its Smart-Tek Communication Inc. subsidiary to
its founder of president Perry Law. Smart-Tek Communication
Inc.'s financials were improperly included in the prior Sept. 2010
Form 10Q.
The Company reported a comprehensive income of $1.58 million on
$4.64 million of revenue for the three months ended Sept. 30,
2010, compared with a net income of $613,962 on $5.28 million of
total revenue as originally reported.
The Company's balance sheet at Sept. 30, 2010, showed $4.30
million in total assets, $3.16 million in total liabilities, all
current, and $1.14 million in total stockholders' equity, compared
with $5.49 million in total assets, $5.33 million in total
liabilities, all current, and stockholder's equity of 155,842.
A full-text copy of the amended quarterly report on Form 10-Q is
available for free at http://is.gd/WrmZzG
About Smart-tek Solutions
Newport Beach, Calif.-based Smart-tek Solutions Inc. has two
business lines. Through its wholly owned subsidiary Smart-Tek
Communications Inc. the Company specializes in the design and
development of Radio Frequency Identification (RFID) integration,
monitoring and tracking solutions to meet industry demands.
Through its wholly owned subsidiary Smart-Tek Automated Services
Inc. the Company provides professional employer organization
services.
John Kinross-Kennedy, of Irvine, California, expressed substantial
doubt about the Company's ability to continue as a going concern.
Mr. Kinross-Kennedy noted that that the Company has suffered
recurring losses until the latest fiscal year, and has a working
capital deficiency of $994,278 and a stockholders' deficiency of
$438,164 at June 30, 2010.
The Company's balance sheet at March 31, 2011, showed $4.31
million in total assets, $3.17 million in total liabilities, all
current, and $1.13 million in total stockholders' equity.
SOURCEHOV LLC: S&P Assigns 'B' Corporate Credit Rating
------------------------------------------------------
Standard & Poor's Ratings Services assigned its 'B' corporate
credit rating to Dallas-based SOURCEHOV LLC. "We assigned a 'B+'
issue rating and a '2' recovery rating to the $425 million first-
lien credit facilities, consisting of a $75 million revolver due
2016 and a $350 million term bank loan due 2018. We also assigned
a 'CCC+' issue rating and '6' recovery rating to the $200 million
second-lien term loan. In addition, we withdrew our 'B' corporate
credit rating and all other ratings on SOURCECORP Inc.," S&P
related.
"The outlook is positive, reflecting an enhanced market position
and growth prospects, and our expectation that the company will
reduce leverage in the near term through a combination of revenue
growth and cost reductions, following a relatively smooth
integration of the two companies," S&P said.
"Our ratings on SOURCEHOV reflect its highly leveraged financial
profile and potential integration issues, partly offset by an
improved market position and cost-reduction opportunities," said
Standard & Poor's credit analyst Martha Toll-Reed. SOURCEHOV
provides business process outsourcing (BPO) solutions that enable
its customers to automate high-volume, document-intensive workflow
processes. In addition, the company offers specialized services
that include class action claims administration services, and
professional economic research and litigation services.
SOURCEHOV's weak business profile reflects its small but improving
position in the large, fragmented BPO market. A material level of
recurring revenues, significant customer switching costs, and a
diverse customer base partly offset that factor," S&P added.
SPANISH BROADCASTING: To Effect a 1-for-10 Reverse Stock Split
--------------------------------------------------------------
Spanish Broadcasting System, Inc., announced that its Board of
Directors, as authorized by the Company's stockholders, will
implement a one-for-ten reverse stock split of its common stock.
The Company filed a charter amendment to implement the reverse
stock split, which will become effective on July 11, 2011 at 11:59
p.m. and will have a marketplace effective date of July 12, 2011.
The reverse stock split was authorized by SBS's stockholders at
the annual meeting held on June 1, 2011.
The Board's decision to implement the reverse stock split was made
to help SBS maintain its Nasdaq Global Market listing. The bid
price of the Company's common stock must close at $1.00 or higher
for ten consecutive business days prior to July 31, 2011, in order
for the Company to maintain its listing on the Nasdaq Global
Market.
As a result of the reverse stock split, each 10 outstanding shares
of pre-split common stock will be automatically combined into one
share of post-split common stock. The Company's registered
stockholders will receive instructions from Broadridge Corporate
Issuer Solutions, Inc., the Company's transfer agent, regarding
the exchange of outstanding pre-split stock certificates for
certificates representing post-split shares of common stock. Upon
submission of the necessary documentation by a stockholder of
record to the Company's transfer agent pursuant to such
instructions, the transfer agent will distribute to such
stockholder a new certificate. Proportional adjustments will be
made to the Company's outstanding stock warrants, stock options
and other equity awards and to the Company's equity compensation
plans to reflect the reverse stock split.
The trading of the Company's common stock on the Nasdaq Global
Market on a split-adjusted basis will begin at the opening of
trading on July 12, 2011. The Company's common stock will
continue to trade on the Nasdaq Global Market under the symbol
"SBSA" and will include the letter "D" appended to the trading
symbol for a period of 20 trading days to indicate that the
reverse stock split has occurred, after which time it will revert
to trading under the symbol "SBSA."
About Spanish Broadcasting
Headquartered in Coconut Grove, Florida, Spanish Broadcasting
System, Inc. -- http://www.spanishbroadcasting.com/-- owns and
operates 21 radio stations targeting the Hispanic audience. The
Company also owns and operates Mega TV, a television operation
with over-the-air, cable and satellite distribution and affiliates
throughout the U.S. and Puerto Rico. Its revenue for the twelve
months ended Sept. 30, 2010, was approximately $140 million.
The Company reported net income of $15.04 million on $136.12
million of net revenue for the year ended Dec. 31, 2010, compared
with a net loss of $13.78 million on $139.39 million of net
revenue during the prior year.
The Company's balance sheet at March 31, 2011, showed
$476.63 million in total assets, $434.87 million in total
liabilities, $92.35 million in cumulative exchangeable redeemable
preferred stock, and a $50.58 million total stockholders' deficit.
* * *
In November 2010, Moody's Investors Service upgraded the corporate
family and probability of default ratings for Spanish Broadcasting
System, Inc., to 'Caa1' from 'Caa3' based on improved free cash
flow prospects due to better than anticipated cost cutting and the
expiration of an unprofitable interest rate swap agreement.
Moody's said Spanish Broadcasting's 'Caa1' corporate family rating
incorporates its weak capital structure, operational pressure in
the still cyclically weak economic climate, generally narrow
growth prospects (though Spanish language is the strongest growth
prospect) given the maturity and competitive pressures in the
radio industry, and the June 2012 maturity of its term loan
magnify this challenge.
In July 2010, Standard & Poor's Ratings Services raised its
corporate credit rating on Miami, Fla.-based Spanish Broadcasting
System Inc. to 'B-' from 'CCC+', based on continued improvement in
the company's liquidity position. The rating outlook is stable.
"The rating action reflects S&P's expectation that, despite very
high leverage, SBS will have adequate liquidity over the
intermediate term to meet debt maturities, potential swap
settlements, and operating needs until its term loan matures on
June 11, 2012," said Standard & Poor's credit analyst Michael
Altberg.
STELLAR GT TIC: Files Schedules of Assets and Liabilities
---------------------------------------------------------
Stellar GT TIC LLC filed with the Bankruptcy Court its schedules
of assets and liabilities, disclosing:
Schedule Total Assets Total Liabilities
-------- ------------ -----------------
A - Real Property Undetermined
B - Personal Property $0
C - Property Claimed
As Exempt -
D - Creditors Holding
Secured Clamis $207,623,768
E - Creditors Holding
Unsecured Priority Claims $0
F - Creditors Holding
Unsecured Non-priority
Claims $0
------------ -----------------
Undetermined $207,623,768
In separate court filings, Stellar GT TIC and VFF TIC LLC listed
the Montgomery County Department of Finance as their largest
unsecured creditor. They said the Finance Department has a
contingent, unliquidated, and disputed claim on account of an
indemnity-deed-of-trust recordation tax.
About Stellar GT TIC and VFF TIC
Stellar GT TIC LLC and VFF TIC LLC, owners of the Georgian
apartments located at 8750 Georgia Avenue in Silver Spring,
Maryland, filed for Chapter 11 bankruptcy protection (Bankr. D.
Md. Case Nos. 11-22977 and 11-22980) on June 22, 2011. Judge
Wendelin I. Lipp oversees the case. Michelle Maloney-Raymond is
the case administrator. Matthew G. Summers, Esq., at Ballard
Spahr LLP, serves as the Debtors' counsel.
The Debtors negotiated a plan of reorganization before filing for
Chapter 11. The proposed plan is premised on either (1) a sale of
the project pursuant to an auction process or (2) a consensual
restructuring of the secured debt. Broker CB Richard Ellis Inc.
has been hired to conduct the sale.
The auction rules provide that a first-round sealed bid would be
required to be submitted by Aug. 24. The broker would then have
until Sept. 5 to negotiate with the first-round bidders. Second-
round sealed bids would be due Sept. 5. The highest second-round
bid would be identified by Sept. 12, 2011. The highest bid would
be submitted for approval at the confirmation hearing in October.
Wells Fargo, the holder of a $207.6 million secured debt, can bid
at the auction. The Lender is represented by Mark Taylor, Esq.,
at Kilpatrick Townsend & Stockton LLP, and Jantra Van Roy, Esq.,
at Zeichner Ellman & Krause LLP.
STELLAR GT TIC: Court to Review Auction Protocol on Aug. 1
----------------------------------------------------------
The Bankruptcy Court will hold a hearing on Aug. 1 at 2:00 p.m. at
Courtroom 3-C, in Greenbelt, to consider approval of guidelines
for the auction and sale of The Georgian apartments.
The asset sale underpins the plan of reorganization Stellar GT TIC
LLC and VFF TIC LLC filed on the petition date. The Plan was
negotiated prepetition with Wells Fargo N.A., holder of the $207.6
million in secured debt.
If the sale fails to generate substantial proceeds, the Debtors
will look to restructure the secured debt. The Debtors have
brought in CB Richard Ellis Inc. to conduct the sale.
The Debtors propose to conduct a two-stage sealed bid auction
process. In the first round, sealed bids are due by 5:00 p.m.
Eastern Time on Aug. 24. Between Aug. 24 and Sept. 5, 2011, CBRE
will engage in negotiations and discussions with qualified bidders
from the first round of sealed bids with the objective of
obtaining, in a second round of sealed bids, higher and better
offers. CBRE will consult with Wells Fargo.
The deadline for submitting second-round sealed bids is 5:00 p.m.
Eastern Time on Sept. 5, 2011.
Wells Fargo can credit bid at the auction.
On or before Sept. 12, 2011, the qualified bidder bidding the
highest cash purchase price that exceeds the amount of the
Lender's highest credit bid will be declared the successful
bidder, and its bid will be presented to the Court at the
confirmation hearing for approval.
If the prevailing bidder is the Lender, then the Project will not
be sold and the Lender's loan will be restructured.
The Bankruptcy Court has not scheduled a hearing to consider
confirmation of the Plan. Under the Plan, claims and interests in
each of the Debtors are grouped in three classes. Classes 1-A and
1-B comprise Wells Fargo's claims. The Lender will be paid from
proceeds of the asset sale and cash collateral.
If the Project is not sold, then: (a) all property of the Stellar
Estate, including Stellar's interest in the Project, will be
transferred to VFF, and Stellar will be dissolved, (b) new LLC
Interests representing 100% of the ownership interest in VFF will
be issued to FCP Fund I Trust, and (c) VFF will execute and comply
with the terms of amended loan documents.
FCP Fund I will designate a management company at or before the
Confirmation Hearing to manage the Project.
General Unsecured Claims in Classes 2-A and 2-B will be paid their
pro rata share of the sale proceeds remaining after payment of the
Allowed Claims in Classes 1-A and 1-B. If the Amended Loan
Closing occurs, Claims in Classes 2-A and 2-B will be paid their
pro rata share of $50,000, which will be taken from Cash
Collateral.
Interests in the Debtors are placed in Classes 3-A and 3-B. Any
sale proceeds remaining after payment of Claims in Classes 1-A, 1-
B, 2-A and 2-B will be paid to FCP Georgian Towers, LLC on account
of a pledge of the LLC Interests to FCP Georgian Towers, LLC to
secure a loan. If the Amended Loan Closing occurs, the LLC
Interests in Classes 3-A and 3-B will be extinguished on the
Effective Date.
The Debtors note that the value of the Project and all other
collateral securing the Loan is less than the total outstanding
balance due on the Loan. The Debtors possess no assets that are
not mortgaged or otherwise pledged to the Lender as collateral for
the Loan. Accordingly, if the Project and other assets of the
Debtors were liquidated, holders of other Claims and Interests
would receive nothing. The Debtors said because the Plan provides
some treatment for these holders, they will recover more under the
Plan than they would if the Project and other assets of the
Debtors were liquidated by a trustee in a chapter 7 proceeding.
About Stellar GT TIC and VFF TIC
Stellar GT TIC LLC and VFF TIC LLC, owners of the Georgian
apartments located at 8750 Georgia Avenue in Silver Spring,
Maryland, filed for Chapter 11 bankruptcy protection (Bankr. D.
Md. Case Nos. 11-22977 and 11-22980) on June 22, 2011. Judge
Wendelin I. Lipp oversees the case. Michelle Maloney-Raymond is
the case administrator. Matthew G. Summers, Esq., at Ballard
Spahr LLP, serves as the Debtors' counsel.
Secured lender Wells Fargo is represented by Mark Taylor, Esq., at
Kilpatrick Townsend & Stockton LLP, and Jantra Van Roy, Esq., at
Zeichner Ellman & Krause LLP.
STATION CASINOS: Unit Sues Arizona Lounge Over Use of "Revolver"
----------------------------------------------------------------
Santa Fe Station, a subsidiary of Station Casinos LLC, has filed
a lawsuit in the district court in Nevada against Revolver LLC's
Revolver Lounge for allegedly infringing the "Revolver" and
"Revolver Saloon and Dance Hall" trademarks, Las Vegas Review-
Journal reports.
The Arizona Lounge allegedly started using the "Revolver" name in
January 2010. Santa Fe argued that it had "priority rights" over
the name, including the "Revolver Saloon Dance Hall" phrase, by
filing federal intent-to-use applications in December 2009 for
bars and nightclubs.
On behalf of Santa Fe, lawyers in Brownstein Hyatt Farber Schreck
LLP, in Las Vegas, argued that Revolver Lounge's use of the
infringing mark has created a likelihood of confusion among
consumers who may falsely believe that Revolver Lounge's services
are associated with Station Casinos' services or that Station
Casinos has sponsored or approved of those services or commercial
activities.
About Station Casinos
Station Casinos, Inc., is a gaming and entertainment company that
currently owns and operates nine major hotel/casino properties
(one of which is 50% owned) and eight smaller casino properties
(three of which are 50% owned), in the Las Vegas metropolitan
area, as well as manages a casino for a Native American tribe.
Station Casinos Inc., together with its affiliates, filed for
Chapter 11 protection on July 28, 2009 (Bankr. D. Nev. Case No.
09-52477). Milbank, Tweed, Hadley & McCloy LLP serves as legal
counsel in the Chapter 11 case; Brownstein Hyatt Farber Schreck,
LLP, as regulatory counsel; and Lewis and Roca LLP is local
counsel. Lazard Freres & Co. LLC is investment banker and
financial advisor. Kurtzman Carson Consultants LLC is the claims
and noticing agent. Brad E. Scheler, Esq., and Bonnie Steingart,
Esq., at Fried, Frank, Shriver, Harris & Jacobson LLP, in New
York, serve as counsel to the Official Committee of Unsecured
Creditors.
In its bankruptcy petition, Station Casinos said that it had
assets of $5,725,001,325 against debts of $6,482,637,653 as of
June 30, 2009. About 4,378,929,997 of its liabilities constitute
unsecured or subordinated debt securities.
Green Valley Ranch Gaming, LLC and thirty other affiliates of
Station Casinos Inc. sought bankruptcy protection under Chapter 11
protection on April 12, 2011. First to file among the April 12
Debtors was Auburn Development, LLC (Bankr. D. Nev. Case No. 11-
51188). The April 12 Debtors filed a prepackaged plan of
reorganization together with their Chapter 11 petitions to
reorganize debts and consummate the sale of the Green Valley Ranch
Resort, Spa & Casino to a group of buyers led by the Fertitta
family.
Bankruptcy Creditors' Service, Inc., publishes Station Casinos
Bankruptcy News. The newsletter tracks the Chapter 11 proceedings
of Station Casinos Inc. and its debtor-affiliates.
(http://bankrupt.com/newsstand/or 215/945-7000)a
STILLWATER MINING: USW International Ratifies New Labor Contract
----------------------------------------------------------------
Stillwater Mining Company reported that union employees at the
Company's Stillwater Mine and Columbus processing facilities,
represented by the USW International Union Local 11-0001, have
ratified a new four-year labor agreement. The Company experienced
no work stoppage related to negotiation and ratification of the
new agreement.
About Stillwater Mining
Billings, Montana-based Stillwater Mining Company --
http://www.stillwatermining.com/-- is the only U.S. producer of
palladium and platinum and is the largest primary producer of
platinum group metals outside of South Africa and Russia. The
Company's shares are traded on the New York Stock Exchange under
the symbol "SWC."
The Company's balance sheet at March 31, 2011, showed $974.54
million in total assets, $344.74 million in total liabilities and
$629.80 million in total stockholders' equity.
Stillwater carries 'Caa1' corporate family and probability of
default ratings, with 'stable' outlook, from Moody's Investors
Service. It has 'B' issuer credit ratings from Standard & Poor's.
STILLWATER MINING: Expects to Report $222.6MM Revenue for Q2 2011
-----------------------------------------------------------------
Stillwater Mining Company announced that second quarter 2011 mined
production of palladium and platinum totaled 142,700 ounces, an
increase of 26.7% over the 112,600 ounces produced during the same
period last year and 8.8% more than the 131,200 ounces produced
during the first quarter of 2011.
Mined production of palladium and platinum has exceeded original
estimates for the first two quarters of 2011. Production has
exceeded expectations due primarily to more tons mined than
anticipated, higher ore grades in the lower off shaft area of the
Stillwater Mine and the contribution of higher grades from the
east side of the mine. In addition, no disruption in production
or productivity was experienced as a result of the recent labor
contract negotiations. Based on updated estimates, the Company is
increasing its 2011 annual forecast for mined palladium and
platinum production to 515,000 ounces from its original guidance
of 500,000 ounces. Although the Company believes that production
for 2011 is likely to be higher than originally planned, this
cautious increase recognizes that mining conditions at both mines
may be more difficult during the second half of this year.
While the financial close of the second quarter of 2011 is not yet
complete, the Company currently expects to report total revenues
for the second quarter of $222.6 million, including $139.7 million
from sales of mined production and $82.9 million from recycling.
Total mined palladium and platinum sold increased to 136,600
ounces in the second quarter of 2011, compared to the 116,700
ounces sold during the second quarter of the same period last year
and 115,100 ounces sold during the first quarter of 2011.
Combined sales realizations for mined palladium and platinum
increased to $964 per ounce for the quarter, a significant
increase from the $725 per ounce realized during the second
quarter of 2010 and slightly less than the $994 per ounce realized
during the first quarter of 2011. The Company processed recycling
material containing 125,200 ounces of palladium, platinum and
rhodium at its smelter and refinery during the second quarter, up
from 99,200 ounces recycled during the second quarter of 2010 and
up from 115,600 ounces fed during the first quarter of 2011.
The Company's total cash and cash equivalents, including
available-for-sale investments, totaled approximately $240.0
million at June 30, 2011. The corresponding total at December 31,
2010 was $208.4 million.
About Stillwater Mining
Billings, Montana-based Stillwater Mining Company --
http://www.stillwatermining.com/-- is the only U.S. producer of
palladium and platinum and is the largest primary producer of
platinum group metals outside of South Africa and Russia. The
Company's shares are traded on the New York Stock Exchange under
the symbol "SWC."
The Company's balance sheet at March 31, 2011, showed $974.54
million in total assets, $344.74 million in total liabilities and
$629.80 million in total stockholders' equity.
Stillwater carries 'Caa1' corporate family and probability of
default ratings, with 'stable' outlook, from Moody's Investors
Service. It has 'B' issuer credit ratings from Standard & Poor's.
STILLWATER MINING: To Acquire Peregrine for $487.1 Million
----------------------------------------------------------
Stillwater Mining Company and Peregrine Metals Ltd. have entered
into a definitive agreement pursuant to which Stillwater, by way
of a Canadian plan of arrangement, will acquire all of the
outstanding shares of Peregrine. Under the terms of the
Agreement, Stillwater will exchange 0.08136 shares of Stillwater
common stock and US$1.35 in cash for each common share of
Peregrine. Based on the closing share price of Stillwater common
stock as of July 8, 2011, which was US$23.72, the Agreement places
a value on Peregrine common shares of US$3.28 (CDN$3.16) per
share. This represents a total purchase price of US$487.1
million, and assumes the exercise of all outstanding Peregrine
options and warrants resulting in a CDN$34.4 million (US$35.7
million) contribution to treasury, and implying a net equity value
of US$451.4 million. Upon completion of the transaction,
Stillwater and Peregrine shareholders will own approximately 89.5%
and 10.5%, respectively, of the combined company on a fully
diluted basis.
After the completion of this transaction, Stillwater plans to
further delineate, develop and operate Peregrine's Altar porphyry
copper-gold deposit, a large, undeveloped open-pit resource
located in the San Juan province of Argentina. Altar has Canadian
NI 43-101 compliant measured and indicated copper resources of 7.4
billion pounds of copper and inferred copper resources of 4.3
billion pounds, both at a 0.3% copper equivalent cut-off grade.
The property also has significant gold resources, with 1.5 million
ounces of measured and indicated resource and an inferred resource
of 880 thousand ounces. The resources at Altar are open to
expansion laterally in three directions and at depth.
Altar is located in a mining-friendly jurisdiction with several
other active, large-scale, copper and gold mines as well as
exploration and development projects. Stillwater expects that
development of the Altar project will benefit from potential
infrastructure synergies as well as from its strategic location
near key transportation routes across the nearby Chilean border
and proximity to shipping facilities on the Pacific Ocean.
Both companies and their shareholders are expected to benefit from
increased scale and an enhanced capital markets profile. Further,
the transaction provides Stillwater immediate scale in copper
resources, with the potential to develop into one of the leading
copper producers in the Americas, and also provides increased
exposure to gold resources. In combination with last year's
Marathon acquisition in Canada and expansion opportunities at
Blitz and Graham Creek in Montana, this transaction creates a
robust pipeline of projects that enhances Stillwater's near- and
long-term growth profile across platinum group metals, gold and
copper.
Discussing the Peregrine acquisition, Frank McAllister,
Stillwater's Chairman and Chief Executive Officer, said, "For
several years, one of Stillwater's primary strategic goals has
been to grow and diversify our business through the acquisition
and development of high-quality mining assets. The Peregrine
transaction provides us with broader diversification into copper -
- a metal with favorable long-term fundamentals driven by growing
market demand -- as well as meaningful exposure to gold."
McAllister added, "In combination with our PGM producing assets in
Montana and the continuing development of our Marathon assets in
Canada, we are creating a leading mid-cap diversified mining
company with a strong financial profile and a robust growth
pipeline across attractive commodity classes and geographies. We
believe that the mix of PGMs, gold and copper provides Stillwater
and its shareholders with a unique and compelling investment
proposition."
Eric Friedland, Peregrine's Chairman and Chief Executive Officer,
said, "We are pleased to enter into a transaction that provides
our shareholders with both immediate value as well as the ability
to participate in the upside potential of a diversified mining
company with a significant weighting in precious metals from
secure jurisdictions, especially PGMs which are crucial to the
rapidly growing world-wide automotive industry. Stillwater not
only has the balance sheet strength, financing capabilities and
cash flow required to advance Altar's development, but the proven
operational track record and extensive management experience in
the copper industry needed to do so in a thoughtful and diligent
manner. It was also important to us to enter into a transaction
with an internationally respected partner like Stillwater -- a
company with a demonstrated commitment to fair labor practices,
environmental sustainability, and responsible corporate
citizenship in its operating communities."
The transaction has been unanimously approved by the Boards of
Directors of both companies and is expected to be completed by
Sept. 30, 2011, pending regulatory and exchange approvals,
customary closing conditions and the approval of Peregrine
shareholders. Salman Partners Inc. has provided a verbal opinion
to the Peregrine Board of Directors that the consideration to be
received by Peregrine shareholders under the Agreement is fair,
from a financial point of view, to the Peregrine shareholders and
the Board of Directors of Peregrine recommends that holders of
Peregrine shares vote in favor of the transaction. The officers
and directors of Peregrine have executed support agreements in
favor of the plan of arrangement.
Stillwater believes that Altar has long-term potential to be
developed into an outstanding copper and gold mine. Stillwater
plans to invest approximately US$75 million over the next three
years to fully delineate the Altar resource and to advance
exploration on the property.
As part of the plan of arrangement, Peregrine shareholders will
receive as value for their shares, consideration that is
essentially 59% in the form of newly issued Stillwater shares and
41% in cash. Specifically, Stillwater will exchange 0.08136
Stillwater shares and US$1.35 in cash for each Peregrine share.
Holders of Peregrine stock options may elect to exchange their
options for options exercisable solely for Stillwater shares (and
no cash), upon payment of the exercise price, on the equivalent
basis of one Peregrine share for 0.14793 of a Stillwater common
share.
Deutsche Bank is acting as financial advisor to Stillwater and has
provided a US$200 million bridge commitment. Skadden, Arps,
Slate, Meagher and Flom LLP is providing legal advice to
Stillwater in the United States, and Fraser Milner Casgrain LLP is
providing legal advice to Stillwater in Canada.
Salman Partners Inc. is providing a fairness opinion to
Peregrine's Board of Directors and Koffman Kalef LLP is providing
legal advice to Peregrine.
The transaction will be carried out by way of a Canadian plan of
arrangement. Completion of the transaction is subject to customary
conditions, including court approvals, a favorable vote of at
least two-thirds of the holders of Peregrine common shares voted
at a special meeting of shareholders, and the receipt of all
necessary regulatory and exchange approvals. The transaction
agreement includes standard representations, warranties and
covenants for a transaction of this nature, as well as a non-
solicitation clause and provides for the payment, in certain
circumstances, of a US$13.4 million break fee to Stillwater. Eric
Friedland and other directors and officers holding approximately
17% of current shares outstanding have executed support agreements
whereby they have agreed to vote their shares in favor of the
transaction. Peregrine expects to mail an information circular to
its shareholders providing full details of the Stillwater
transaction in August 2011.
About Stillwater Mining
Billings, Montana-based Stillwater Mining Company --
http://www.stillwatermining.com/-- is the only U.S. producer of
palladium and platinum and is the largest primary producer of
platinum group metals outside of South Africa and Russia. The
Company's shares are traded on the New York Stock Exchange under
the symbol "SWC."
The Company's balance sheet at March 31, 2011, showed $974.54
million in total assets, $344.74 million in total liabilities and
$629.80 million in total stockholders' equity.
Stillwater carries 'Caa1' corporate family and probability of
default ratings, with 'stable' outlook, from Moody's Investors
Service. It has 'B' issuer credit ratings from Standard & Poor's.
TAWK DEVELOPMENT: Has Until Today to File Reorganization Plan
-------------------------------------------------------------
Hon. Mike K. Nakagawa of the U.S. Bankruptcy Court for the
District of Nevada approved a stipulation extending until today,
July 14, 2011, Tawk Development, LLC's time to file a plan of
reorganization.
The Debtor and Aviva Real Estate LLP, the Debtor's principal
creditor, entered into that certain stipulation extending the
exclusive period for the Debtor to file a plan. The stipulation
was aimed to reach a consensual resolution as to their respective
disputes, which resolution, to the extent one can be reached, will
be incorporated in the plan.
Las Vegas, Nevada-based Tawk Development, LLC, owns and operates a
198-unit resort style apartment complex known as Falcon Landing,
which is located at 5067 Madre Mesa Drive in Las Vegas. It filed
for Chapter 11 bankruptcy protection (Bankr. D. Nev. Case No. 11-
10584) on Jan. 14, 2011. Talitha B. Gray, Esq., at Gordon &
Silver, Ltd., serves as the Debtor's bankruptcy counsel. The
Debtor disclosed $22,747,153 in assets and $21,263,119 in
liabilities as of the Chapter 11 filing.
TAYLOR BEAN: Freddie Mac Objects to $1.6 Billion Settlement
-----------------------------------------------------------
Ian Thoms at Bankruptcy Law360 reports that Freddie Mac objected
on Monday to a proposed settlement in Florida that would allow
Taylor Bean & Whitaker Mortgage Corp. to pay a $1.6 billion
bankruptcy claim held by a subsidiary implicated alongside the
defunct lender in a massive bank and securities fraud.
Freddie Mac asked a Florida bankruptcy court to refuse Taylor
Bean's request for an expedited hearing on the settlement or
reject it outright, according to Law360.
About Taylor Bean
Taylor, Bean & Whitaker Mortgage Corp. grew from a small Ocala-
based mortgage broker to become one of the largest mortgage
bankers in the United States. In 2009, Taylor Bean was the
country's third largest direct-endorsement lender of FHA-insured
loans of the largest wholesale mortgage lenders and issuer of
mortgage backed securities. It also managed a combined mortgage
servicing portfolio of approximately $80 billion. The company
employed more that 2,000 people in offices located throughout the
United States.
Taylor Bean sought Chapter 11 protection (Bankr. M.D. Fla. Case
No. 09-07047) on Aug. 24, 2009. Taylor Bean filed the Chapter 11
petition three weeks after federal investigators searched its
offices. The day following the search, the Federal Housing
Administration, Ginnie Mae and Freddie Mac prohibited the company
from issuing new mortgages and terminated servicing rights.
Taylor Bean estimated more than $1 billion in both assets and
liabilities in its bankruptcy petition.
Jeffrey W. Kelly, Esq., and J. David Dantzler, Jr., Esq., at
Troutman Sanders LLP, in Atlanta, Ga., and Russel M. Blain, Esq.,
and Edward J. Peterson, III, Esq., at Stichter, Riedel, Blain &
Prosser, PA, in Tampa, Fla., represent the Debtors. Paul Steven
Singerman, Esq., and Arthur J. Spector, Esq., at Berger Singerman
PA, in Miami, Fla., represent the Committee. BMC Group, Inc.,
serves as the claims and noticing agent.
TAYLOR CAPITAL: Fitch Affirms, Withdraws 'B-' L/T IDR
--------------------------------------------------------
Fitch Ratings has affirmed and withdrawn the ratings of Taylor
Capital Group, Inc., including the long-term Issuer Default (IDR)
of 'B-'.
The rating withdrawal reflects Fitch's view that Taylor Capital
Group, Inc. is no longer considered by Fitch to be relevant to the
agency's coverage. Fitch will no longer provide ratings or
analytical coverage of Taylor Capital or its subsidiaries.
Fitch has affirmed and withdrawn these ratings:
Taylor Capital Group, Inc.
-- Long-term Issuer Default Rating (IDR) at 'B-';
-- Individual at 'D/E';
-- Preferred stock at 'CC/RR6'.
-- Short-term IDR at 'B'.
-- Support Rating at '5';
-- Support Floor at 'NF'.
Cole Taylor Bank
-- Long-term IDR at 'B';
-- Short-term at 'B';
-- Individual at 'D';
-- Long-term deposits at 'B+/RR3';
-- Short-term deposits at 'B';
-- Support Rating at '5';
-- Support Floor at 'NF'.
TAYC Capital Trust I
-- Preferred stock at 'CC/RR6'.
THERMOENERGY CORP: Issues Preferred Shares and Warrants
-------------------------------------------------------
ThermoEnergy Corporation, on May 31, 2011, issued to the holders
of the Company's Amended and Restated Promissory Notes due
Feb. 29, 2012, upon the automatic conversion, in accordance with
the terms of the Restated Notes, of portions of the principal of,
and accrued and unpaid interest under, such Restated Notes, shares
of the Company's Series B Convertible Preferred Stock and Common
Stock Purchase Warrants:
Series B
Note Holder Shares Warrants
----------- -------- --------
Spencer Trask Specialty Group LLC 11,189 179,024
Massachusetts Technology Development Corp. 4,816 77,056
BCLF Ventures I, LLC 2,626 42,016
Essex Regional Retirement Board 79 1,264
BancBoston Ventures Inc. 158 2,528
The automatic conversions on May 31, 2011, were triggered by the
Company making scheduled payments under the Restated Notes. The
Restated Notes provided for such automatic conversions in
connection with all payments that we make on or before July 5,
2011.
On June 21, 2011, the Company's Board of Directors, acting
pursuant to authority expressly granted in the Company's
Certificate of Incorporation, increased from 6,454,621 to
9,500,000 the number of shares of the Company's Preferred Stock,
par value $0.01 per share, designated as "Series B Convertible
Preferred Stock." The Certificate of Increase effecting such
increase constitutes an amendment to the Company's Certificate of
Incorporation.
A full-text copy of the filing is available for free at:
http://is.gd/Rx86Ey
About ThermoEnergy Corporation
Little Rock, Ark.-based ThermoEnergy Corporation is a clean
technologies company engaged in the worldwide development of
advanced municipal and industrial wastewater treatment systems and
carbon reducing clean energy technologies.
The Company reported a net loss of $9.85 million on $2.87 million
of revenue for the year ended Dec. 31, 2010, compared with a net
loss of $12.98 million on $4.01 million of revenue during the
prior year.
The Company's balance sheet at March 31, 2011, showed
$3.97 million in total assets, $13.15 million in total liabilities
and a $9.18 million total stockholders' deficiency.
As reported by the TCR on April 7, 2011, Kemp & Company, a
Professional Association, in Little Rock, Arkansas, expressed
substantial doubt about the Company's ability to continue as a
going concern. The independent auditors noted that the Company
has incurred net losses since inception and will require
substantial capital to continue commercialization of the
Company's technologies and to fund the Companies liabilities.
TOMMY @ 718: Voluntary Chapter 11 Case Summary
----------------------------------------------
Debtor: Tommy @ 718, LLC
718 Chestnut Street
Philadelphia, PA 19106
Bankruptcy Case No.: 11-15477
Chapter 11 Petition Date: July 11, 2011
Court: U.S. Bankruptcy Court
Eastern District of Pennsylvania (Philadelphia)
Judge: Bruce I. Fox
Debtor's Counsel: Edmond M. George, Esq.
OBERMAYER REBMANN MAXWELL & HIPPEL, LLP
1617 John F. Kennedy Boulevard
One Penn Center, Suite 1900
Philadelphia, PA 19103
Tel: (215) 665-3140
E-mail: edmond.george@obermayer.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
The Company did not file a list of creditors together with its
petition.
The petition was signed by Yuet Y. Chan, president.
TRICO MARINE: Tennenbaum Says Plan Shortchanged $27-Mil. Claim
--------------------------------------------------------------
Eric Hornbeck at Bankruptcy Law360 reports that Tennenbaum Capital
Partners LLC attacked Trico Marine Services Inc.'s proposed
reorganization plan Thursday in Delaware bankruptcy court, saying
the plan shortchanged its $27 million unsecured claim.
Law360 relates that the former Trico debtor-in-possession lender
argued that the plan improperly placed its claim in a class with
an estimated recovery of 5.54 percent even though it belonged in a
class with an estimated recovery of 10.73 percent, according to
court filings.
About Trico Marine
Headquartered in Texas, Trico Marine Services, Inc. --
http://www.tricomarine.com/-- provides subsea services, subsea
trenching and protection services, and towing and supply vessels.
Trico filed for Chapter 11 protection (Bankr. D. Del. Case No.
10-12653) on Aug. 25, 2010. John E. Mitchell, Esq., Angela B.
Degeyter, Esq., and Harry A. Perrin, Esq., at Vinson & Elkins LLP,
serve as the Debtor's bankruptcy counsel. The Debtor disclosed
US$30,562,681 in assets and US$353,606,467 in liabilities as of
the Petition Date.
Affiliates Trico Marine Assets, Inc. (Bankr. D. Del. Case No.
10-12648), Trico Marine Operators, Inc. (Case No. 10-12649), Trico
Marine International, Inc. (Case No. 10-12650), Trico Marine
Cayman, L.P. (Case No. 10-12651), and Trico Holdco, LLC (Case No.
10-12652) filed separate Chapter 11 petitions.
Cahill Gordon & Reindell LLP is the Debtors' special counsel.
Alix Partners Services, LLC, is the Debtors' chief restructuring
officer. The financial advisors are Evercore Partners and AP
Services LLC. Epiq Bankruptcy Solutions is the Debtors' claims
and notice agent. Postlethwaite & Netterville serves as the
Debtors' accountant and Ernst & Young LLP serves as tax advisors.
PricewaterhouseCoopers LLC provides the independent accountants
and tax advisors for the Debtors.
Aside from the Cayman Islands holding company, Trico's foreign
subsidiaries were not included in the filing and were not subject
to the requirements of the U.S. Bankruptcy Code.
The Official Committee of Unsecured Creditors tapped Laura Davis
Jones, Esq., and Timothy P. Cairns, Esq., at Pachulski, Stang,
Ziehl & Jones LLP, in Wilmington, Delaware, and Andrew K. Glenn,
Esq., David J. Mark, Esq., and Daniel A. Fliman, Esq., at
Kasowitz, Benson, Torres & Friedman LLP, in New York, as counsel.
The Trico Supply Group -- which includes Trico Supply AS, Trico
Shipping AS, DeepOcean AS, CTC Marine Projects Ltd. and other
subsidiaries -- completed an out-of-court restructuring in May
2011. Pursuant to the out-of-court restructuring, $399,500,000 or
99.88%, of Trico Shipping's 11-7/8% Senior Secured Notes due 2014,
the Trico Supply Group's working capital facility debt and
intercompany claims and interests held by Trico Marine entities,
were equitized and the holders received common stock of DeepOcean
Group Holding AS, a new Norwegian private limited company.
DeepOcean Holding and its subsidiaries, including Trico Supply,
Trico Shipping, DeepOcean, CTC and other subsidiaries, were spun
off Trico Marine.
TURNING STONE: S&P Withdraws 'B+' Issuer Credit Rating
------------------------------------------------------
Standard & Poor's Ratings Services withdrew its ratings on Oneida,
N.Y.-based Turning Stone Resort Casino, LLC, including its 'B+'
issuer credit rating, at the issuer's request. Turning Stone has
fully repaid its $160 million 9.125% senior notes due 2014.
UNIGENE LABORATORIES: Richard Levy Discloses 44.2% Equity Stake
---------------------------------------------------------------
In an amended Schedule 13D filing with the U.S. Securities and
Exchange Commission, Richard Levy and his affiliates disclosed
that they beneficially own 66,182,698 shares of common stock of
Unigene Laboratories, Inc., representing 44.2% of the shares
outstanding. A full-text copy of the filing is available for free
at http://is.gd/VwzEdo
About Unigene
Unigene Laboratories, Inc. OTCBB: UGNE) -- http://www.unigene.com/
-- is a biopharmaceutical company focusing on the oral and nasal
delivery of large-market peptide drugs.
Grant Thornton LLP, in New York, expressed substantial doubt about
Unigene Laboratories' ability to continue as a going concern
following the Company's 2009 results. The firm noted that the
Company has incurred a net loss of $13,400,000 during the year
ended Dec. 31, 2009 and has an accumulated deficit of
approximately $143,000,000 as of Dec. 31, 2009. As of that
date, the Company's current liabilities exceeded its current
assets by $1,251,000 and its total liabilities exceeded total
assets by $30,442,000.
The Company reported a net loss of $27.86 million on $11.34
million of revenue for the year ended Dec. 31, 2010, compared with
a net loss of $13.37 million on $12.79 million of revenue during
the prior year.
The Company's balance sheet at March 31, 2011, showed $23.49
million in total assets, $69.89 million in total liabilities and a
$46.40 million total stockholders' deficit.
USA UNITED: Files for Bankruptcy to Address Financial Woes
----------------------------------------------------------
Katy Stech, writing for Dow Jones' Daily Bankruptcy Review,
reports that USA United Fleet Inc. filed for bankruptcy to seek a
little breathing room after hitting a series of financial
potholes.
According to DBR, the company turns a profit off the six New York
City Department of Education contracts it has secured, according
to company attorney Todd Duffy, Esq. But executives at the
family-owned company now have to decide whether they'll
restructure the company's finances throughout the bankruptcy case
or simply sell the business to escape their mounting money
problems.
According to DBR, court documents say company officials are in the
middle of suing an outside payroll firm over millions of dollars
it allegedly embezzled instead of putting toward the appropriate
taxing authorities. Then, the union representing its bus drivers
demanded a $1.2 million security deposit -- a request that its
collective-bargaining agreement doesn't even allow for -- the
company said.
The report also notes the company's most senior lender, Comerica
Bank, also charged it more than $1 million for adjustments it made
to the company's original loan. Comerica has sued USA United
Fleet and its affiliates to collect money related to the $10.9
million it says it's owed. The company disputes the amount.
According to the report, the company said it lost available cash
in the amount of almost $10,000,000.
DBR relates Mr. Duffy said that the company's biggest concern is
being able to pay its roughly 1,800 employees.
About USA United Fleet
Based in Staten Island, USA United Fleet is one of the biggest
providers of transportation for New York City's public-school
children. USA United Fleet Inc. and seven affiliates filed for
Chapter 11 bankruptcy protection (Bankr. E.D.N.Y. Lead Case No.
11-45867) on July 6, 2011. Judge Jerome Feller presides over the
case. Todd E. Duffy, Esq., at Anderson Kill & Olick, P.C., serves
as the Debtors' counsel. In its petition, USA United Fleet
estimated assets and debts of $10 million to $50 million. The
petition was signed by William Moran, comptroller.
VENTAS CAPITAL: Moody's Upgrades Senior Debt Shelf From (P)Ba1
--------------------------------------------------------------
Moody's Investors Service upgraded Ventas Inc.'s senior unsecured
debt ratings to Baa2 from Baa3, and at the same time affirmed
Nationwide Health Properties, Inc.'s senior unsecured debt ratings
at Baa2. The ratings outlook is stable. These actions follow the
closing of Ventas's acquisition of all of the outstanding shares
of NHP in a stock-for-stock transaction valued at $7.6 billion and
concludes Moody's review of Ventas's ratings.
RATINGS RATIONALE
The acquisition of Nationwide Health Properties provides Ventas
with a deeper and broader health care real estate platform,
expanding its triple-net lease, operating and medical office
businesses. The resulting size and scale of the combined
enterprise should provide Ventas with cost of capital advantage as
it continues to grow.
This transaction provides other key benefits to Ventas's credit
profile. First, it decreases the REIT's top operator concentration
to 19% of NOI from 36% (as of 1Q11). Second, it increases
unencumbered assets. Third, net debt to EBITDA is expected to
remain moderate at 5.0X. Finally, senior housing operating assets
through RIDEA structures decline to 26% of NOI from 39% which, for
now, Moody's views positively as these cash flows add more
volatility to the REIT's overall earnings stream.
From a structural perspective, Nationwide Health Properties (and
its assets) will be a wholly-owned subsidiary of Ventas, Inc.
Ventas, Inc. will not guarantee the unsecured bonds of NHP,
however, it remains a guarantor of the unsecured bonds co-issued
by Ventas Realty Limited Partnership (VRLP) and Ventas Capital
Corporation (VCC). Moody's expects future unsecured debt issuance
will continue to be made through VRLP and VCC and new acquisitions
will be made through VRLP.
Moody's notes that integration risk is a concern. This transaction
is the largest of three major transactions announced by Ventas
within the past year. Although Ventas has been successful in the
past with integrating entity-level acquisitions, its Lillibridge
and Atria businesses require operating skills different from
Ventas's traditional triple-net lease model, and add operating
complexity to Ventas's business model. Moody's notes that Ventas
has been successful in managing its Sunrise operating assets since
2007.
The stable outlook reflects the expectation that VTR will continue
to operate with a conservative capital strategy, especially given
the shift in its operating model. Moody's also expects Ventas to
maintain net debt to EBITDA below 5.0X on a long-term basis, even
as the REIT grows, and that the REIT continues to make further
progress in diversifying its healthcare operator/tenant base.
Moody's stated that a rating upgrade would be predicated upon a
permanent reduction in net debt to EBITDA below 4.5X, secured debt
below 10% of gross assets, and unencumbered assets closer to 75%
of gross book assets. In addition, further progress in
operator/tenant diversification would be viewed positively.
Downward rating pressure could result should net debt to EBITDA
increase to 6.0X and secured debt increase to the mid-to-high
teens, both on a sustained basis. Material operating weakness in
any of its top tenant/operators translating into fixed charge
coverage below 2.5X would result in a downgrade. In addition, any
added complexity to the organizational legal structure that would
diminish bondholder protections would also result in negative
ratings pressure.
These ratings were upgraded with a stable outlook:
Ventas Realty Limited Partnership -- Senior debt to Baa2 from
Baa3; senior debt shelf to (P)Baa2 from (P)Baa3; subordinated debt
shelf to (P)Baa3 from (P)Ba1
Ventas, Inc. -- Senior guaranteed debt to Baa2 from Baa3; senior
debt shelf to (P)Baa3 from (P)Ba1; subordinated debt shelf to
(P)Ba1 from (P)Ba2; preferred stock shelf to (P)Ba1 from (P)Ba3
Ventas Capital Corporation -- senior debt shelf to (P)Baa2 from
(P)Baa3; subordinated debt shelf to (P)Baa3 from (P)Ba1
These ratings were affirmed with a stable outlook:
Nationwide Health Properties, Inc. -- Senior unsecured debt at
Baa2
The last rating action with respect to Ventas, Inc. and Nationwide
Health Properties, Inc. was on March 1, 2011 when Moody's placed
Ventas, Inc.'s senior unsecured debt ratings (at Baa3) on review
for possible upgrade, and at the same time affirmed Nationwide
Health Properties, Inc.'s senior unsecured debt ratings at Baa2
and preferred stock ratings at Baa3. These actions followed the
announcement that Ventas would acquire all of the outstanding
share of NHP in a stock-for-stock transaction valued at $7.4
billion.
Ventas, Inc. is a healthcare real estate investment trust which
owns a diverse portfolio of more than 1300 assets in 47 states
(including District of Columbia) and two Canadian provinces.
Healthcare real estate assets include seniors housing communities,
skilled nursing facilities, hospitals, medical office buildings
and other properties. At March 31, 2011, Ventas had $5.7 billion
in book assets.
The principal methodology used in this rating was the Global
Rating Methodology for REITs and Other Commercial Property Firms
published in July 2010.
VERTIS HOLDINGS: Wants Former CEO's $5.8 Million Pay Claim Reduced
------------------------------------------------------------------
Megan Stride at Bankruptcy Law360 reports that Vertis Holdings
Inc. fought back Friday against its ex-CEO's claim for $5.75
million in bonuses and salary, telling a New York bankruptcy court
that the former executive's employment agreement entitles him to
no more than $1.1 million.
Quincy L. Allen failed to live up to the performance-based
requirements for most of the award money he seeks, Vertis said in
its objection to the four claims Allen lodged in January after the
company rejected his employment agreement under its speedy
reorganization plan, according to Law360.
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.
WARNER MUSIC: Obtains Requisite Consents on Tender Offers
---------------------------------------------------------
WMG Acquisition Corp. and WMG Holdings Corp., both wholly-owned
subsidiaries of Warner Music Group Corp., commenced tender offers
on June 27, 2011, and solicited consents with respect to the
(a) 7 3/8% Senior Subordinated Notes due 2014, (b) 8 1/8% Senior
Subordinated Notes due 2014, and (c) 9.5% Senior Discount Notes
due 2014, upon the terms and subject to the conditions set forth
in the Offer to Purchase and Consent Solicitation Statement, dated
June 27, 2011.
The purpose of the Consent Solicitations is to (i) amend the
indenture, dated as of April 8, 2004, by and among WMG
Acquisition, the subsidiary guarantors named therein and Wells
Fargo Bank, National Association, as trustee, pursuant to which
the 7 3/8% Dollar-denominated Senior Subordinated Notes due 2014
and 8 1/8% Sterling-denominated Senior Subordinated Notes due 2014
were issued and (ii) amend the indenture, dated as of Dec. 23,
2004, by and among WMG Holdings, Warner, as guarantor, and the
Trustee, pursuant to which the 9.5% Senior Discount Notes due 2014
were issued.
The Tender Offers and Consent Solicitations were made in
connection with the Agreement and Plan of Merger, dated as of
May 6, 2011, by and among Airplanes Music LLC, an affiliate of
Access Industries, Inc., Airplanes Merger Sub, Inc., a wholly-
owned subsidiary of Airplanes Music LLC, and Warner, pursuant to
which Airplanes Merger Sub, Inc., will be merged with and into
Warner upon the terms and subject to the conditions set forth in
the Merger Agreement.
As of 5:00 p.m., New York City time, on July 11, 2011, a majority
of the outstanding aggregate principal amount of (i) the Dollar-
denominated and Sterling-denominated Senior Subordinated Notes,
taken together, in the case of the WMG Acquisition Indenture and
(ii) the Senior Discount Notes, in the case of the WMG Holdings
Indenture were validly tendered and not validly withdrawn, and the
related consents were validly delivered and not validly withdrawn.
Upon receipt of the Requisite Consents, the applicable Company,
the applicable guarantors and the Trustee executed a supplemental
indenture to each indenture to effect the proposed amendments to
the applicable Indenture; as a result, tendered notes may no
longer be withdrawn and related consents may no longer be revoked.
On the terms and subject to the conditions of the Tender Offers
and Consent Solicitations, the proposed amendments will become
operative only upon the applicable Initial Acceptance Date for
such tender offer, which will occur promptly following the
satisfaction or waiver of the conditions to such tender offer,
including the consummation of the Acquisition. The Supplemental
Indentures shall bind all holders of the applicable series of
notes and their transferees.
The Companies engaged Credit Suisse Securities (USA) LLC and UBS
Securities LLC as dealer managers for the Tender Offers and
consent solicitation agents for the Consent Solicitations.
Questions and requests for assistance regarding the Tender Offers
and Consent Solicitations should be directed to Credit Suisse
Securities (USA) LLC at (212) 325-5912 (collect) or (800) 820-1653
(toll free) or UBS Securities LLC at (203) 719-4210 (collect) or
(888) 719-4210 (toll free). Requests for documents may be
directed to D.F. King & Co., Inc., which acted as the information
agent for the Tender Offers and Consent Solicitations, atat (800)
714-3312 (toll free) or (212) 269-5550 (collect), or D.F. King
(Europe) Limited, at +44 20 7920 9700 (main) or via
wmg@dfking.com.
About Warner Music Group
Based in New York, Warner Music Group Corp. (NYSE: WMG)
-- http://www.wmg.com/-- was formed by a private equity
consortium of investors on Nov. 21, 2003. The Company is the
direct parent of WMG Holdings Corp., which is the direct parent of
WMG Acquisition Corp. WMG Acquisition Corp. is one of the world's
major music-based content companies and the successor to
substantially all of the interests of the recorded music and music
publishing businesses of Time Warner Inc.
The Company classifies its business interests into two fundamental
operations: Recorded Music and Music Publishing. The Company's
Recorded Music business primarily consists of the discovery and
development of artists and the related marketing, distribution and
licensing of recorded music produced by such artists. The
Company's Music Publishing operations include Warner/Chappell, its
global Music Publishing company, headquartered in New York with
operations in over 50 countries through various subsidiaries,
affiliates and non-affiliated licensees.
Warner Music reported a net loss of $39 million on $682 million of
revenue for the three months ended March 31, 2011, compared with a
net loss of $28 million on $666 million of revenue for the same
period during the prior year. The Company also reported a net
loss of $57 million on $1.47 billion of revenue for the six months
ended March 31, 2011, compared with a net loss of $44 million on
$1.58 billion of revenue for the same period during the prior
year.
The Company's balance sheet at March 31, 2011, showed
$3.61 billion in total assets, $3.87 billion in total liabilities
and a $254 million in total deficit.
* * *
In May 2011, Warner Music Group Corp. and Access Industries, the
U.S.-based industrial group, announced the execution of a
definitive merger agreement under which Access Industries will
acquire WMG in an all-cash transaction valued at $3.3 billion.
The purchase includes WMG's entire recorded music and music
publishing businesses.
WASHINGTON MUTUAL: Creditors Fight Attacks on JPMorgan Settlement
-----------------------------------------------------------------
Ian Thoms at Bankruptcy Law360 reports that a group of Washington
Mutual Inc. creditors fired back Monday at mounting attempts to
derail the company's multibillion-dollar settlement with financial
regulators and JPMorgan Chase & Co., which was cleared by a
Delaware bankruptcy court in January.
With some former supporters of the settlement switching sides to
oppose the deal and WaMu investors digging in, the defunct bank's
official unsecured creditors committee sought to silence the
growing opposition, arguing that the bankruptcy court had already
closed the debate when it endorsed the settlement, Law360 says.
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. The Debtor tapped Valuation Research Corporation as
valuation service provider for certain assets.
Fred S. Hodara, Esq., at Akin Gump Strauss Hauer & Fled LLP in New
York and David B. Stratton, Esq., at Pepper Hamilton LLP in
Wilmington, Del., represent the Official Committee of Unsecured
Creditors. Stephen D. Susman, Esq., at Susman Godfrey LLP and
William P. Bowden, Esq., at Ashby & Geddes, P.A., represent the
Equity Committee. The official committee of equity security
holders also tapped BDO USA as its tax advisor. Stacey R.
Friedman, Esq., at Sullivan & Cromwell LLP and Adam G. Landis,
Esq., at Landis Rath & Cobb LLP in Wilmington, Del., represent
JPMorgan Chase, which acquired the WaMu bank unit's assets prior
to the Petition Date.
On Jan. 7, 2011, the U.S. Bankruptcy Court for the District of
Delaware entered a 107-page opinion determining that the global
settlement agreement, among certain parties including WMI, the
Federal Deposit Insurance Corporation and JPMorgan Chase Bank,
N.A., upon which the Plan is premised, and the transactions
contemplated therein, are fair, reasonable, and in the best
interests of WMI. Additionally, the Opinion and related order
denied confirmation, but suggested certain modifications to the
Company's Sixth Amended Joint Plan of Affiliated Debtors that, if
made, would facilitate confirmation.
Washington Mutual has filed with the Bankruptcy Court a Modified
Sixth Amended Joint Plan and a related Supplemental Disclosure
Statement. The Company believes that the Modified Plan has
addressed the Bankruptcy Court's concerns and looks forward to
returning to the Bankruptcy Court to seek confirmation of the
Modified Plan.
WL HOMES: Zurich Balks at Builders Move to Lift Stay
----------------------------------------------------
Hilary Russ at Bankruptcy Law360 reports that Zurich American
Insurance Co. objected Monday to a move by a group of residential
builders to get relief from the automatic stay in the Chapter 7
case of WL Homes LLC in Delaware bankruptcy court.
Law360 relates that the builders, who were subdevelopers for the
Sunrise Ridge residential development in Nevada, were sued along
with WL Homes in 2010 by homeowners over alleged defects in
Sunrise's sewer system. The subdevelopers, led by U.S. Home
Corp., asked the bankruptcy court on June 27 to lift the stay.
About WL Homes
Irvine, California-based WL Homes LLC -- dba John Laing Homes,
John Laing Homes Luxury, Laing Urban, Laing Luxury Homes, and John
Laing Urban -- is one of metro Denver's largest homebuilders. It
builds under the John Laing brand primarily in Colorado,
California, Arizona, and Texas.
John Laing began as a builder in the United Kingdom and came to
the U.S. market in 1984. The company was sold to Dubai-based
Emaar Properties in 2006 for $1.05 billion. Emaar invested
$613 million in the company, but eventually stopped funding. John
Laing had a work force of 1,100 in 2006, but cut employees to
about 90 by the first week of February 2009. John Laing has 105
real estate developments across the country. It also builds
luxury and custom homes.
WL Homes and five of its affiliates filed for Chapter 11
protection on February 19, 2009 (Bankr. D. Del. Lead Case No. 09-
10571). Laura Davis Jones, Esq., and Timothy P. Cairns, Esq., at
Pachulski Stang Ziehl & Jones LLP, represent the Debtors' in their
restructuring efforts. Ashby & Geddes represents the Official
Committee of Unsecured Creditors. In its bankruptcy petition, WL
Homes estimated assets of more than $1 billion, and debts between
$500 million and $1 billion.
As reported in the TCR on June 10, 2009, the Bankruptcy Court
converted WL Homes LLC and its debtor affiliates' Chapter 11 cases
to cases under Chapter 7 liquidation, at the request of the
official committee of unsecured creditors.
WOODS CANYON: Voluntary Chapter 11 Case Summary
-----------------------------------------------
Debtor: Woods Canyon Associates L.P.
One Betterworld Circle, Suite 300
Temecula, CA 92590
Bankruptcy Case No.: 11-32418
Chapter 11 Petition Date: July 11, 2011
Court: U.S. Bankruptcy Court
Central District of California (Riverside)
Judge: Deborah J. Saltzman
Debtor's Counsel: Krikor J. Meshefejian, Esq.
LEVENE, NEALE, BENDER, YOO & BRILL LLP
10250 Constellation Boulevard, Suite 1700
Los Angeles, CA 90067
Tel: (310) 229-1234
Fax: (310) 229-1244
E-mail: kjm@lnbrb.com
Estimated Assets: $10,000,001 to $50,000,000
Estimated Debts: $1,000,001 to $10,000,000
The Company did not file a list of creditors together with its
petition.
The petition was signed by Paul Garrett, president/sole
shareholder of general partner.
Debtor-affiliates filing separate Chapter 11 petitions:
Entity Case No. Petition Date
------ -------- -------------
Diaz Road Properties, LLC 11-28473 06/06/11
RCI Redbird, LLC 11-28479 06/06/11
RCI Regional Grove, LLC 11-22055 04/12/11
RCI Rio Nedo, LLC 11-28470 06/06/11
WYNN RESORTS: Fitch Upgrades Issuer Default Rating to 'BB'
----------------------------------------------------------
Fitch Upgrades Wynn's IDR to 'BB'; Wynn Macau Bank Debt to
Investment Grade; Outlook Positive
Fitch Ratings-New York-08 July 2011:
Fitch Ratings upgrades the Issuer Default Ratings (IDRs) of Wynn
Resorts, Ltd's (Wynn Resorts or the parent) and its subsidiaries
(collectively, Wynn or the company) to 'BB' from 'BB-'. The Rating
Outlook is Positive.
Subsidiaries include Wynn Las Vegas, LLC (Wynn LV LLC) and Wynn
Resorts (Macau), SA (Wynn Macau SA). Fitch currently equalizes the
IDRs of all three entities.
Fitch also upgrades the senior secured bank credit facility and
senior secured first mortgage notes at Wynn LV LLC to 'BB+' from
'BB' and upgrades the senior secured credit facility at Wynn Macau
SA to 'BBB-' from 'BB+'.
The IDR upgrade and the Positive Outlook reflect Wynn's robust
operating trends, primarily in Macau. The 'BB' IDR is further
supported by Wynn's strong liquidity position; Fitch's increased
comfort with the scope and funding of the potential Cotai project;
management's historically prudent balance sheet management; and
Wynn's strong brand value and high asset quality.
Main credit concerns include the company's high leverage at its
Las Vegas subsidiary, its concentration of assets in two markets,
development risk/capital intensity, continued shareholder friendly
actions and key management risk.
Macau Operating Trends Continue to Outperform Expectations:
Macau's gaming revenues continue to trend ahead of Fitch's
expectations. Market revenues are up roughly 45% year-to-date
(YTD) through June 2011 on top of a 67% increase for the same
period in 2010, and a 58% increase for full year 2010. Fitch
believes the market is poised to continue to grow solidly (albeit
not at these recent growth levels) in the near-to-medium term,
driven by pending transportation infrastructure improvements, the
fast growing Chinese wealthy and middle class and new gaming
supply (Galaxy Macau and Las Vegas Sands' Sites 5&6).
However, the growth is susceptible to economic and regulatory
conditions in China, as nearly 60% of Macau's visitors come from
Mainland China, while another roughly one-quarter come from Hong
Kong. Most notable risks include China and Macau government policy
decisions, a major real estate correction and a disruption in the
credit markets.
Visa restrictions were implemented when Macau's inflation rate
approached double digits in 2008 and the inflation rate has been
rising steadily again for the last 18 months to the mid-single
digit range. If revenue growth continues at a torrid pace and
inflation continues to rise, there is a good likelihood the
Chinese and Macau governments would take corrective measures to
cool the growth. Fitch believes that Macau revenue growth
sustaining well above 30% would be considered uncomfortable for
the government.
The Macau government's mindset with respect to sustainable growth
bears watching with respect to Wynn's Cotai development plans.
There is currently a table cap in effect through 2013.
Additionally, Wynn needs to be granted a land concession, while
MGM China and SJM also do not currently have Cotai operations and
are pursuing developments there as well. Fitch believes investment
in non-gaming amenities will be an important part of the project
approval process, and that could potentially pressure returns on
invested capital.
The company's performance in Macau has been consistent with the
general market trends. Through March 31, 2011, Wynn's Macau latest
12 months (LTM) adjusted EBITDA of $984 million is up 73% over the
prior year LTM period, driven by the April 2010 Encore Macau
opening. And, according to various reports, Wynn's market share of
revenue through June 30, 2011 has remained steady in the mid-
teens.
Wynn's Las Vegas Trends Also Outperform:
Wynn's EBITDA growth in Las Vegas has outperformed the Las Vegas
results of all its peers (LVS, Caesars, and MGM) in six of the
last eight reported quarters and Fitch expects Wynn's competitive
position in Las Vegas to continue to strengthen. Recent
investments included the opening of two night clubs and a room
remodel at Wynn Las Vegas, while capital reinvestment in Las Vegas
by the company's competitors remains strained. As of March 31,
2011, the company's Las Vegas LTM adjusted EBITDA of $342 million
is at its highest level in three years, but remains 18%-19% below
its peak in 2007, which was prior to the December 2008 opening of
Encore Las Vegas.
Fitch continues to expect the LV Strip recovery to gain traction
this year and be more pronounced in 2012, based largely on the
pick up in convention/group business resulting in a positive mix
shift. However, the U.S. consumer remains fragile, so the LV
recovery is susceptible to macro-economic trends, which have
weakened recently in the U.S. Fitch recently revised downward its
2011 U.S. GDP growth forecast by roughly 40 basis points to 2.6%.
Leverage and Coverage:
As of March 31, 2011, there was $2.6 billion of debt at Wynn LV
LLC, $551 million at Wynn Macau SA and no debt at the parent
level. All of the debt is secured. Fitch calculates consolidated
gross leverage and coverage of 2.5 times (x) and 5.4x,
respectively, as of March 31, 2011. Driven by the operating
outperformance noted above, gross de-leveraging has been better
than expected. At the subsidiary level, Fitch calculates gross
leverage of 0.7x at Wynn Macau SA and 8.2x at Wynn LV LLC as of
March 31, 2011, respectively.
Liquidity and Free Cash Flow:
Wynn maintains a strong liquidity profile. The company's sizable
cash balance and robust free cash flow profile in Macau provides
significant financial flexibility to fund the Cotai development,
return cash to shareholders, and maintain credit protection
measures consistent with a 'BB' or 'BB+' IDR, given Wynn's
business risks.
As of March 31, 2011, the company had $2.6 billion of available
liquidity, consisting of nearly $700 million of cash held at Wynn
Resorts, $87 million of cash and $327 million of credit facility
availability at Wynn LV LLC, $665 million of cash and $1 billion
of credit facility availability at Wynn Macau SA, offset by
Fitch's estimate of roughly $200 million-$225 million in
cage/operational cash.
Wynn's debt maturities are manageable with a minimal amount coming
due in 2011, followed by roughly $200 million annually in 2012-
2014 primarily from term loan amortizations. The only significant
piece of debt maturing in the near term is the undrawn $1 billion
Macau revolver in June 2012, which Fitch believes will be
addressed in upcoming quarters, possibly in connection with
progress on Cotai development approvals.
With no major development projects underway since the completion
of Encore Macau in April 2010, Wynn generated approximately $1
billion of free cash flow (before dividends) in the LTM period
ending March 31, 2011. On April 19, 2011, Wynn Resorts declared a
regular quarterly dividend of $0.50, equating to roughly $250
million of regular dividends per year.
After paying the regular dividend, Fitch expects Wynn to split the
balance of the free cash flow on returning cash to shareholders
(special dividends and/or share repurchases) and development
funding/dry powder. Wynn has paid a large special dividend in four
of the last five years for a total of nearly $2.8 billion.
However, Wynn has also liberally issued equity to fund
developments or to accumulate capital during the recent recession.
Since its initial IPO in 2002, Wynn completed five secondary
equity issuances from 2004-2009 in the U.S., raising nearly $1.9
billion, while also raising an additional $1.9 billion in its 2009
Hong Kong IPO of its Macau subsidiary.
Based on Fitch's current free cash flow expectations and a
potential Cotai project opening around 2015, the company has the
ability to fund the $2 billion-$3 billion development mostly
through internally generated funds. However, Fitch believes Wynn
will continue to return cash to shareholders and fund the project
with a sizable amount of debt, possibly additional secured bank
debt. With Wynn Macau SA gross leverage currently at less than 1x
and virtually no net debt, Fitch believes the company will be able
to maintain low secured leverage levels through the Cotai
development, which supports the upgrade of the Wynn Macau SA
secured debt rating to investment grade status, or 'BBB-'.
Drivers of Future Rating Actions:
These rating drivers can potentially place negative pressure on
the ratings and/or Outlook:
-- Wynn developing another project in conjunction with Cotai.
Fitch believes that Wynn would be interested to develop in
Massachusetts, Florida, Japan or Taiwan if any of these
jurisdictions approve large scale casino resorts.
-- A significant economic dislocation in China caused by a real
estate correction and/or credit market disruptions.
-- Chinese government enforces stricter restrictions on
visitation to Macau by the Chinese nationals, or takes other
measures to slow growth.
-- U.S. economic recovery stalls or begins to point to a
double-dip recession, although that scenario is not
currently in Fitch's base case.
-- Greater than expected shareholder friendly actions.
If one or more of these drivers were to materialize, Fitch
believes that Wynn's IDR and credit profile has the ability to
remain firmly in the 'BB' category.
Current consolidated gross leverage and coverage levels are solid
for the 'BB' IDR relative to Wynn's business risks, and Fitch
forecasts that the company can maintain solid credit protection
measures through the Cotai development. As a result, the Positive
Outlook incorporates Fitch's view that the IDR could be upgraded
to 'BB+' over the next 12-24 months. However, an investment grade
IDR is unlikely given the core risks noted above, and Fitch's
current belief that there is little incentive for the company to
maintain an investment grade credit profile if additional
development opportunities present themselves while economic trends
weaken.
With Wynn LV LLC gross leverage north of 8x, an upgrade of the IDR
to 'BB+' is unlikely to result in an upgrade of the Wynn LV LLC
credit facility or first mortgage notes to investment grade, since
all of the debt at this subsidiary is secured and Fitch maintains
a cautious view of the Las Vegas recovery. An upgrade to
investment grade for the Wynn LV LLC secured debt may be possible
if the company recapitalizes the subsidiary with a significant
amount of unsecured debt replacing much of the secured debt.
Parent and Subsidiary Rating Relationships:
Fitch currently links the IDRs of Wynn Resorts, Wynn LV LLC, and
Wynn Macau SA. The parent company and subsidiaries are distinct
issuers, the subsidiary debt is non-recourse to the parent, and
there are no cross-default provisions or cross guarantees (other
than if Chairman and CEO Steve Wynn leaves the company). However,
the strategic linkage between the parent and subsidiaries is very
high, primarily due to the use of the Wynn brand in the overall
corporate strategy, the cross-marketing for high-end Asian
customers, and the common management team. In addition, the
company has demonstrated intercompany support through a number of
transactions, and Fitch is comfortable with the company's ability
to move cash tax efficiently.
As credit quality improves, Fitch is likely to continue to link
the IDRs if there is positive rating momentum. Conversely, if
Wynn's credit quality were to deteriorate, Fitch may opt to view
the credits on a stand-alone rather than linked basis at some
point. This could occur in the event the credit becomes distressed
and intercompany or parent-level support appears unlikely,
insufficient, or not possible. The credit would probably have to
deteriorate to a weak 'B' or 'B-' IDR level for this to occur.
Fitch has taken these rating actions:
Wynn Resorts, Ltd. (Wynn Resorts)
-- Issuer Default Rating (IDR) upgraded to 'BB' from 'BB-'.
Wynn Las Vegas, LLC (Wynn LV LLC)
-- IDR upgraded to 'BB' from 'BB-';
-- Senior secured bank credit facility upgraded to 'BB+' from
'BB';
-- Senior secured first mortgage notes (FMNs) upgraded to 'BB+'
from 'BB'.
Wynn Resorts (Macau), SA (Wynn Macau SA)
-- IDR upgraded to 'BB' from 'BB-';
-- Senior secured bank credit facility upgraded to 'BBB-' from
'BB+'.
ZANETT INC: Fails to Comply with NASDAQ's Bid Price Requirement
---------------------------------------------------------------
Zanett, Inc., on July 6, 2011, received a letter from the NASDAQ
Stock Market notifying the Company that the bid price per share
for the Company's common stock has closed below the $1.00 minimum
bid price requirement for 30 consecutive trading days and that, as
a result, the Company no longer meets The NASDAQ Capital Market's
minimum bid price requirement for continued listing set forth in
Marketplace Rule 5550(a)(2). No breach of any other listing
requirement was listed in the letter.
Pursuant to Marketplace Rule 5810(c)(3)(A), the Company has 180
calendar days, or until Jan. 3, 2012, to regain compliance with
the rule. To regain compliance with the minimum bid price
requirement, the closing bid price of the Company's common stock
must close above $1.00 for a minimum of ten consecutive trading
days. Furthermore, the letter also states that in certain
circumstances, the NASDAQ staff has the discretion to require
compliance for a period in excess of 10 consecutive business days,
but generally no more than 20 consecutive business days.
The 180-day compliance period relates exclusively to the Company's
bid price deficiency. The Company may be delisted during the 180-
day period for failure to maintain compliance with any other
listing requirement which occurs during this period. Currently
the Company believes that it is not in breach of any other listing
requirement.
If, by Jan. 3, 2012, the Company cannot demonstrate compliance
with Marketplace Rule 5550(a)(2), then the NASDAQ staff will
determine whether or not the Company meets The NASDAQ Capital
Market initial listing criteria set forth in NASDAQ Marketplace
Rule 5550, except for the bid price requirement.
If the Company meets the initial listing criteria (with the
exception of the bid price requirement) and provides written
notice of its intention to cure the deficiency during the second
compliance period, the NASDAQ staff will notify the Company that
it has been granted an additional 180 calendar day compliance
period, or until July 1, 2012.
If the Company is not eligible for an additional 180-day
compliance period, the NASDAQ staff will provide written notice
that the Company's securities will be delisted. At that time, the
Company may appeal the NASDAQ staff's determination to delist its
securities to a Listing Qualifications Panel.
The Company's management and Board of Directors are considering
various alternatives to address this issue.
About Zanett Inc.
Based in New York, Zanett Inc. is an information technology
company that provides customized IT solutions to Fortune 500
corporations and mid-market companies. Until the disposition of
Paragon Dynamics, Inc., the Company also provided those solutions
to classified government agencies.
Zanett Inc. in November 2010 said it remains in discussion
to replace its revolving credit facility with Bank of America.
Zanett was not in compliance with certain loan covenants as of
Sept. 30, 2010. The credit facility matured on June 21, 2010.
The Company's line of credit was subject to a forbearance
agreement with BofA.
The Company's balance sheet at March 31, 2011, showed $28.97
million in total assets, $24.22 million in total liabilities and
$4.74 million in total stockholders' equity.
Amper, Politziner & Mattia, LLP, in New York, expressed
substantial doubt about the Company's ability to continue as a
going concern, following the 2010 financial results. The
independent auditors noted that the Company has incurred a
significant loss from continuing operations, has a working capital
deficit and all of its outstanding debt is either currently
payable or payable within the next twelve months.
* Tight Credit Conditions Will Lead to Restructurings, Defaults
---------------------------------------------------------------
Dow Jones' DBR Small Cap reports that credit markets largely
remain closed to smaller companies looking to refinance or replace
existing debt, which experts say will drive restructurings,
mergers and acquisitions and defaults over the next several years.
* Skadden Restructuring Pro Joins DLA Piper
-------------------------------------------
Dan Rivoli at Bankruptcy Law360 reports that DLA Piper announced
Tuesday that a former bankruptcy partner at Skadden Arps Slate
Meager & Flom LLP had joined the firm's corporate and finance
practice in Chicago, the latest in a series of restructuring
lawyers to join the firm this year.
Chris Dickerson brings to the firm experience with high-profile
bankruptcy filings, insolvency matters, debt restructuring and
business reorganizations, DLA Piper said.
* Recent Small-Dollar & Individual Chapter 11 Filings
-----------------------------------------------------
In Re Capstone Development LLC
Bankr. D. Ariz. Case No. 11-17851
Chapter 11 Petition filed June 21, 2011
filed pro se
In Re Message And More, Inc.
Bankr. D. Ariz. Case No. 11-17825
Chapter 11 Petition filed June 21, 2011
See http://bankrupt.com/misc/azb11-17825.pdf
In Re Berkshire Investment Group LLC
Bankr. C.D. Calif. Case No. 11-30317
Chapter 11 Petition filed June 21, 2011
See http://bankrupt.com/misc/cacb11-30317.pdf
In Re Sima Bohdjelian
Bankr. C.D. Calif. Case No. 11-17562
Chapter 11 Petition filed June 21, 2011
In Re Charles Bonner
Bankr. N.D. Calif. Case No. 11-12336
Chapter 11 Petition filed June 21, 2011
In Re Kenneth Liszewski
Bankr. M.D. Fla. Case No. 11-11775
Chapter 11 Petition filed June 21, 2011
In Re Preferred Health Resources, Inc.
Bankr. M.D. Fla. Case No. 11-11748
Chapter 11 Petition filed June 21, 2011
See http://bankrupt.com/misc/flmb11-11748.pdf
In Re Little Friends Academy
Bankr. W.D. Ky. Case No. 11-33035
Chapter 11 Petition filed June 21, 2011
See http://bankrupt.com/misc/kywb11-33035.pdf
In Re Thomas Appliance Co.
Bankr. E.D. Mich. Case No. 11-33010
Chapter 11 Petition filed June 21, 2011
See http://bankrupt.com/misc/mieb11-33010.pdf
In Re Richard Knowles
Bankr. D. N.H. Case No. 11-12398
Chapter 11 Petition filed June 21, 2011
In Re Lyon2, LLC
dba Planet Beach Contempo Spa
Bankr. N.D. N.Y. Case No. 11-11980
Chapter 11 Petition filed June 21, 2011
See http://bankrupt.com/misc/nynb11-11980.pdf
In Re Kenny Radio Dispatch, Inc.
Bankr. S.D. N.Y. Case No. 11-12978
Chapter 11 Petition filed June 21, 2011
See http://bankrupt.com/misc/nysb11-12978.pdf
In Re Ala Rabady
Jihane Hajj
Bankr. E.D. Pa. Case No. 11-14910
Chapter 11 Petition filed June 21, 2011
In Re Phillip Petersen
Bankr. E.D. Va. Case No. 11-14534
Chapter 11 Petition filed June 21, 2011
In Re The Thornton Group, LLC
dba Pauli's Bar & Grill and Vinotini
Bankr. N.D. Ala. Case No. 11-82182
Chapter 11 Petition filed June 22, 2011
See http://bankrupt.com/misc/alnb11-82182.pdf
In Re D&K Properties, Inc.
Bankr. W.D. Ark. Case No. 11-72898
Chapter 11 Petition filed June 22, 2011
See http://bankrupt.com/misc/arwb11-72898.pdf
In Re Mario Franco
Bankr. D. Ariz. Case No. 11-18033
Chapter 11 Petition filed June 22, 2011
In Re Alejandro Pasarelli
Bankr. C.D. Calif. Case No. 11-36835
Chapter 11 Petition filed June 22, 2011
In Re Ruben Garcia
Bankr. C.D. Calif. Case No. 11-36948
Chapter 11 Petition filed June 22, 2011
In Re James Saras
Bankr. E.D. Calif. Case No. 11-92235
Chapter 11 Petition filed June 22, 2011
In Re Ronald Miller
Bankr. N.D. Calif. Case No. 11-46702
Chapter 11 Petition filed June 22, 2011
In Re Kevin Sellers
Bankr. D. Conn. Case No. 11-51261
Chapter 11 Petition filed June 22, 2011
In Re H. Freyre
Bankr. M.D. Fla. Case No. 11-11870
Chapter 11 Petition filed June 22, 2011
In Re AV Dental of North Riverside
dba Riverside Dental Management
Bankr. N.D. Ill. Case No. 11-26017
Chapter 11 Petition filed June 22, 2011
See http://bankrupt.com/misc/ilnb11-26017.pdf
In Re AV Dental on Ogden
Bankr. N.D. Ill. Case No. 11-26047
Chapter 11 Petition filed June 22, 2011
In Re Heritage Village Pointe Condominium Association
Bankr. N.D. Ill. Case No. 11-26002
Chapter 11 Petition filed June 22, 2011
See http://bankrupt.com/misc/ilnb11-26002.pdf
In Re Forest Ridge Condominium Sub-Association
Bankr. N.D. Ill. Case No. 11-26003
Chapter 11 Petition filed June 22, 2011
See http://bankrupt.com/misc/ilnb11-26003.pdf
In Re ASA Enterprises, Inc.
Bankr. S.D. Ind. Case No. 11-07942
Chapter 11 Petition filed June 22, 2011
See http://bankrupt.com/misc/insb11-07942.pdf
In Re Arthur Nonneman
Bankr. E.D. Ky. Case No. 11-51775
Chapter 11 Petition filed June 22, 2011
In Re Bonnell Enterprises, Inc.
aka Dynamite Landscaping
Bankr. E.D. Mich. Case No. 11-57328
Chapter 11 Petition filed June 22, 2011
See http://bankrupt.com/misc/mieb11-57328.pdf
In Re Bartizan Connects, LLC
Bankr. S.D. N.Y. Case No. 11-23242
Chapter 11 Petition filed June 22, 2011
See http://bankrupt.com/misc/nysb11-23242.pdf
In Re Jaime Soler Perez
Bankr. D. Puerto Rico Case No. 11-05269
Chapter 11 Petition filed June 22, 2011
In Re New Canaan Misssionary Baptist Church
Bankr. M.D. Tenn. Case No. 11-06167
Chapter 11 Petition filed June 22, 2011
See http://bankrupt.com/misc/tnmb11-06167.pdf
In Re Glenn St. Marie
Bankr. E.D. Wash. Case No. 11-03084
Chapter 11 Petition filed June 22, 2011
In Re Victor De Leon
Bankr. N.D. Calif. Case No. 11-46750
Chapter 11 Petition filed June 23, 2011
In Re Daniel Anderson
Bankr. M.D. Fla. Case No. 11-11971
Chapter 11 Petition filed June 23, 2011
In Re MMR Sanders, LLC
dba Kentucky Fried Chicken (KFC)
dba J.F.S. International, Inc.
Bankr. N.D. Ga. Case No. 11-68397
Chapter 11 Petition filed June 23, 2011
See http://bankrupt.com/misc/ganb11-68397.pdf
In Re Southside Internal Medicine, PC
Bankr. N.D. Ga. Case No. 11-68366
Chapter 11 Petition filed June 23, 2011
See http://bankrupt.com/misc/ganb11-68366.pdf
In Re Arthur Braswell
Bankr. S.D. Ga. Case No. 11-20736
Chapter 11 Petition filed June 23, 2011
In Re Charles Best
Bankr. D. Idaho Case No. 11-20813
Chapter 11 Petition filed June 23, 2011
In Re Papa Keno's Pizzeria, Inc.
Bankr. D. Kan. Case No. 11-21894
Chapter 11 Petition filed June 23, 2011
filed pro se
In Re Casual Furniture Outlets Inc.
dba Casual Furniture
Bankr. D. Mass. Case No. 11-15980
Chapter 11 Petition filed June 23, 2011
See http://bankrupt.com/misc/mab11-15980.pdf
In Re David Poole
Bankr. D. Mass. Case No. 11-15995
Chapter 11 Petition filed June 23, 2011
In Re Mauricio Ordaz
Bankr. D. Mass. Case No. 11-16001
Chapter 11 Petition filed June 23, 2011
In Re Small Plates Detroit, LLC
fdba Small Plates, LLC
Bankr. E.D. Mich. Case No. 11-57408
Chapter 11 Petition filed June 23, 2011
See http://bankrupt.com/misc/mieb11-57408.pdf
In Re East Side Foreign Car Clinic, Inc.
Bankr. W.D. Mich. Case No. 11-06887
Chapter 11 Petition filed June 23, 2011
See http://bankrupt.com/misc/miwb11-06887.pdf
In Re Silas Media Consultants, LLC
Bankr. W.D. Mich. Case No. 11-06872
Chapter 11 Petition filed June 23, 2011
filed pro se
In Re Jeffrey Thompson
Bankr. D. Minn. Case No. 11-34162
Chapter 11 Petition filed June 23, 2011
In Re Vasiliki Tekmitchov
Bankr. N.D. N.Y. Case No. 11-12004
Chapter 11 Petition filed June 23, 2011
In Re Drexel Realty LLC
Bankr. S.D. Ohio Case No. 11-56625
Chapter 11 Petition filed June 23, 2011
See http://bankrupt.com/misc/ohsb11-56625.pdf
In Re Gary Pollard
Bankr. D. Puerto Rico Case No. 11-05312
Chapter 11 Petition filed June 23, 2011
In Re Joseph Palombi
Bankr. E.D. Va. Case No. 11-14614
Chapter 11 Petition filed June 23, 2011
In Re George Gorog
Bankr. W.D. Wash. Case No. 11-17501
Chapter 11 Petition filed June 23, 2011
In Re Behjat Saatchian
Bankr. N.D. Ala. Case No. 11-82221
Chapter 11 Petition filed June 24, 2011
In Re Central Motor Parts, Inc.
Bankr. D. Ariz. Case No. 11-18332
Chapter 11 Petition filed June 24, 2011
See http://bankrupt.com/misc/azb11-18332.pdf
In Re Wayne Latham
Bankr. D. Ariz. Case No. 11-18255
Chapter 11 Petition filed June 24, 2011
In Re Cesareo Aragon
Bankr. C.D. Calif. Case No. 11-30745
Chapter 11 Petition filed June 24, 2011
In Re Rosemary Medel
Bankr. C.D. Calif. Case No. 11-18947
Chapter 11 Petition filed June 24, 2011
In Re Ezequiel Diaz
Bankr. E.D. Calif. Case No. 11-35674
Chapter 11 Petition filed June 24, 2011
In Re Javier Giron
Bankr. N.D. Calif. Case No. 11-32371
Chapter 11 Petition filed June 24, 2011
In Re Stephen Wills
Bankr. N.D. Calif. Case No. 11-12397
Chapter 11 Petition filed June 24, 2011
In Re Eduardo Solorzano
Bankr. S.D. Fla. Case No. 11-27598
Chapter 11 Petition filed June 24, 2011
In Re Selma Weisbein
Bankr. S.D. Fla. Case No. 11-27524
Chapter 11 Petition filed June 24, 2011
In Re Stephen Neidlinger
Bankr. S.D. Ga. Case No. 11-41292
Chapter 11 Petition filed June 24, 2011
In Re The C.P. Hall Co.
Bankr. N.D. Ill. Case No. 11-26443
Chapter 11 Petition filed June 24, 2011
See http://bankrupt.com/misc/ilnb11-26443.pdf
In Re Daniel Belchar
Bankr. D. Nev. Case No. 11-19952
Chapter 11 Petition filed June 24, 2011
In Re Leland Edmondson
Bankr. D. Nev. Case No. 11-52078
Chapter 11 Petition filed June 24, 2011
In Re Mark Kornhauser
Bankr. D. Nev. Case No. 11-20015
Chapter 11 Petition filed June 24, 2011
In Re Sheila McLamb
Bankr. E.D. N.C. Case No. 11-04885
Chapter 11 Petition filed June 24, 2011
In Re Jose Martinez
Bankr. D. N.J. Case No. 11-29216
Chapter 11 Petition filed June 24, 2011
In Re Ponce Graphics & Customs Signs Inc.
Bankr. D. Puerto Rico Case No. 11-05335
Chapter 11 Petition filed June 24, 2011
See http://bankrupt.com/misc/prb11-05335.pdf
In Re The Furniture Galleries, Inc.
dba Blue Suede Bar & Grill
Bankr. W.D. Tenn. Case No. 11-26346
Chapter 11 Petition filed June 24, 2011
See http://bankrupt.com/misc/tnwb11-26346.pdf
In Re Dagaberto Nunez
Bankr. D. Mass. Case No. 11-16082
Chapter 11 Petition filed June 25, 2011
In Re Ronald Doyle
Bankr. D. Nev. Case No. 11-20031
Chapter 11 Petition filed June 25, 2011
In Re Raj Kamal Corporation
dba Franklin Gas and Mart
Bankr. E.D. Calif. Case No. 11-36184
Chapter 11 Petition filed June 30, 2011
See http://bankrupt.com/misc/caeb11-36184.pdf
In Re Syd G. Kelly Construction, Inc.
Bankr. N.D. Calif. Case No. 11-12467
Chapter 11 Petition filed June 30, 2011
See http://bankrupt.com/misc/canb11-12467.pdf
In Re Showtime Classic Cars, Inc.
Bankr. M.D. Fla. Case No. 11-12579
Chapter 11 Petition filed June 30, 2011
See http://bankrupt.com/misc/flmb11-12579.pdf
In Re W&W Investment Properties, Inc.
Bankr. S.D. Ga. Case No. 11-50536
Chapter 11 Petition filed June 30, 2011
See http://bankrupt.com/misc/gasb11-50536.pdf
In Re A & H, LLC.
Bankr. S.D. N.Y. Case No. 11-13163
Chapter 11 Petition filed June 30, 2011
See http://bankrupt.com/misc/nysb11-13163.pdf
In Re Crusade Deliverance Church, Inc.
Bankr. D. S.C. Case No. 11-04136
Chapter 11 Petition filed June 30, 2011
See http://bankrupt.com/misc/scb11-04136.pdf
In Re Woods Wonderland Daycare Center, Inc.
Bankr. D. S.C. Case No. 11-04159
Chapter 11 Petition filed June 30, 2011
See http://bankrupt.com/misc/scb11-04159.pdf
In Re Compartment I, Inc.
Bankr. N.D. Texas Case No. 11-34176
Chapter 11 Petition filed June 30, 2011
See http://bankrupt.com/misc/txnb11-34176p.pdf
See http://bankrupt.com/misc/txnb11-34176c.pdf
In Re Roger Hopkins, Inc.
Bankr. W.D. Texas Case No. 11-52274
Chapter 11 Petition filed June 30, 2011
See http://bankrupt.com/misc/txwb11-52274.pdf
In Re Tierra Firma LLC
Bankr. E.D. Wash. Case No. 11-03238
Chapter 11 Petition filed June 30, 2011
filed pro se
In Re Masterpiece Models, LLC
Bankr. W.D. Wash. Case No. 11-45321
Chapter 11 Petition filed June 30, 2011
See http://bankrupt.com/misc/wawb11-45321.pdf
In Re Ankush Banipal, Inc.
dba Cost Saver Market #3
Bankr. C.D. Calif. Case No. 11-38639
Chapter 11 Petition filed July 1, 2011
See http://bankrupt.com/misc/cacb11-38639.pdf
In Re Ankush Banipal, Inc.
dba Cost Saver Market #3
Bankr. C.D. Calif. Case No. 11-31595
Chapter 11 Petition filed July 1, 2011
See http://bankrupt.com/misc/cacb11-31595.pdf
In Re Sierra Land Associates, LLC
Bankr. C.D. Calif. Case No. 11-31692
Chapter 11 Petition filed July 1, 2011
See http://bankrupt.com/misc/cacb11-31692.pdf
In Re J&P Party's, Inc.
dba Party America
Bankr. E.D. Calif. Case No. 11-92384
Chapter 11 Petition filed July 1, 2011
See http://bankrupt.com/misc/caeb11-92384.pdf
In Re Economic Enterprises Inc.
Bankr. D. Conn. Case No. 11-51366
Chapter 11 Petition filed July 1, 2011
See http://bankrupt.com/misc/ctb11-51366.pdf
In Re Pine Ridge Commons, LLC
Bankr. M.D. Fla. Case No. 11-12785
Chapter 11 Petition filed July 1, 2011
filed pro se
In Re Real Wood Products Corp.
Bankr. N.D. Fla. Case No. 11-40527
Chapter 11 Petition filed July 1, 2011
See http://bankrupt.com/misc/flnb11-40527.pdf
In Re Higher Hope Christian Ministries, Inc.
Bankr. N.D. Ga. Case No. 11-69335
Chapter 11 Petition filed July 1, 2011
filed pro se
In Re Cotton Construction, Inc.
Bankr. S.D. Ga. Case No. 11-50539
Chapter 11 Petition filed July 1, 2011
See http://bankrupt.com/misc/gasb11-50539p.pdf
See http://bankrupt.com/misc/gasb11-50539c.pdf
In Re RRCN Holdings LLC
Bankr. D. N.J. Case No. 11-30152
Chapter 11 Petition filed July 1, 2011
See http://bankrupt.com/misc/njb11-30152.pdf
In Re Upstart, Inc.
dba Eagle Cleaners
dba Butler Cleaners
Bankr. D. S.C. Case No. 11-04196
Chapter 11 Petition filed July 1, 2011
See http://bankrupt.com/misc/scb11-04196.pdf
In Re Kenneth Gene Kennedy
dba Gene Kennedy Enterprises
dba Swanee Recording Studio, A Tn General Partnership
dba Swanee Enterprises
Karen Jeglum Kennedy
dba Swanee Recording Studio, A Tn General Partnership
Bankr. M.D. Tenn. Case No. 11-06558
Chapter 11 Petition filed July 1, 2011
See http://bankrupt.com/misc/tnmb11-06558.pdf
In Re Lee & Cha, Inc.
Bankr. E.D. Texas Case No. 11-42053
Chapter 11 Petition filed July 1, 2011
See http://bankrupt.com/misc/txeb11-42053.pdf
In Re Precious Moments Learning Center, LLC
Bankr. S.D. Texas Case No. 11-35625
Chapter 11 Petition filed July 1, 2011
See http://bankrupt.com/misc/txsb11-35625.pdf
In Re Nand Singh Garcha, Inc.
dba La Plaza Super Mercado
Bankr. C.D. Calif. Case No. 11-38531
Chapter 11 Petition filed July 7, 2011
See http://bankrupt.com/misc/cacb11-38531.pdf
In Re Alex Shamsian
Bankr. C.D. Calif. Case No. 11-18113
Chapter 11 Petition filed July 4, 2011
In Re Jacquelyn Hill
Bankr. N.D. Ga. Case No. 11-22785
Chapter 11 Petition filed July 4, 2011
In Re Charles Hill
Bankr. N.D. Ga. Case No. 11-22786
Chapter 11 Petition filed July 4, 2011
In Re Frank Nardiello
Bankr. D. Nev. Case No. 11-20592
Chapter 11 Petition filed July 4, 2011
In Re Kent Andrews
Bankr. N.D. Ohio Case No. 11-15811
Chapter 11 Petition filed July 4, 2011
In Re Sunset Developers of Hilton Head, LLC
Bankr. D. S.C. Case No. 11-04225
Chapter 11 Petition filed July 4, 2011
See http://bankrupt.com/misc/scb11-04225.pdf
In Re Miguel Rayo
Bankr. S.D. Texas Case No. 11-70422
Chapter 11 Petition filed July 4, 2011
In Re Angel Moreno
Bankr. C.D. Calif. Case No. 11-38911
Chapter 11 Petition filed July 5, 2011
In Re Emad Moawad
Bankr. C.D. Calif. Case No. 11-38785
Chapter 11 Petition filed July 5, 2011
In Re Fernando Real
Bankr. C.D. Calif. Case No. 11-38765
Chapter 11 Petition filed July 5, 2011
In Re Ovazine Shannon
Bankr. C.D. Calif. Case No. 11-38912
Chapter 11 Petition filed July 5, 2011
In Re Royal Leonard
Bankr. C.D. Calif. Case No. 11-18159
Chapter 11 Petition filed July 5, 2011
In Re Joseph Keith
Bankr. N.D. Calif. Case No. 11-12535
Chapter 11 Petition filed July 5, 2011
In Re Ronald Ash
Bankr. N.D. Calif. Case No. 11-12539
Chapter 11 Petition filed July 5, 2011
In Re David Hipps
Bankr. M.D. Fla. Case No. 11-12874
Chapter 11 Petition filed July 5, 2011
In Re John Dokimos
Bankr. S.D. Fla. Case No. 11-28811
Chapter 11 Petition filed July 5, 2011
In Re Darren Truchot
Bankr. D. Idaho Case No. 11-02047
Chapter 11 Petition filed July 5, 2011
In Re Peter Vujic
Bankr. N.D. Ill. Case No. 11-27847
Chapter 11 Petition filed July 5, 2011
In Re Bellepoque, LLC
Bankr. D. Mass. Case No. 11-16445
Chapter 11 Petition filed July 5, 2011
See http://bankrupt.com/misc/mab11-16445.pdf
In Re Doyle Sutton
Bankr. D. Nev. Case No. 11-52193
Chapter 11 Petition filed July 5, 2011
In Re Nevada Holdings Group, LLC
Bankr. D. Nev. Case No. 11-20593
Chapter 11 Petition filed July 5, 2011
See http://bankrupt.com/misc/nvb11-20593.pdf
In Re Jeffrey Clark
Bankr. E.D. N.C. Case No. 11-05195
Chapter 11 Petition filed July 5, 2011
In Re John Wayne Holden
Bankr. E.D. N.C. Case No. 11-05177
Chapter 11 Petition filed July 5, 2011
In Re Robert Turner
Bankr. D. N.H. Case No. 11-12633
Chapter 11 Petition filed July 5, 2011
In Re Imperial Auto Collision Center Inc.
Bankr. E.D. N.Y. Case No. 11-45852
Chapter 11 Petition filed July 5, 2011
filed pro se
In Re Mark Smith
Bankr. N.D. Texas Case No. 11-34416
Chapter 11 Petition filed July 5, 2011
In Re Alfredo Luis Santibanez
Guadalupe Santibanez
Bankr. S.D. Texas Case No. 11-35822
Chapter 11 Petition filed July 5, 2011
filed pro se
In Re Jon Bertolet
Priscilla Bertolet
Bankr. W.D. Texas Case No. 11-11685
Chapter 11 Petition filed July 5, 2011
In Re Eric Cavey
Bankr. E.D. Va. Case No. 11-34338
Chapter 11 Petition filed July 5, 2011
In Re Ju Nam Yoon
Bankr. W.D. Wash. Case No. 11-45418
Chapter 11 Petition filed July 5, 2011
In Re Limestone Furniture Mart, Inc.
Bankr. N.D. Ala. Case No. 11-82314
Chapter 11 Petition filed July 6, 2011
See http://bankrupt.com/misc/alnb11-82314p.pdf
See http://bankrupt.com/misc/alnb11-82314c.pdf
In Re Singing River Landing LLC
Bankr. N.D. Ala. Case No. 11-82327
Chapter 11 Petition filed July 6, 2011
See http://bankrupt.com/misc/alnb11-82327.pdf
In Re Northwest Florida Development Company, LLC
Bankr. N.D. Ala. Case No. 11-82328
Chapter 11 Petition filed July 6, 2011
See http://bankrupt.com/misc/alnb11-82328.pdf
In Re Bernard Schafer
Bankr. C.D. Calif. Case No. 11-39091
Chapter 11 Petition filed July 6, 2011
In Re Michael Hargett
Bankr. C.D. Calif. Case No. 11-19495
Chapter 11 Petition filed July 6, 2011
In Re Rosemarie Lazaro
Bankr. C.D. Calif. Case No. 11-19514
Chapter 11 Petition filed July 6, 2011
In Re Treya, Inc.
Bankr. M.D. Fla. Case No. 11-12919
Chapter 11 Petition filed July 6, 2011
filed pro se
In Re S & B Entertainment, Inc.
Bankr. N.D. Ga. Case No. 11-69899
Chapter 11 Petition filed July 6, 2011
See http://bankrupt.com/misc/ganb11-69899.pdf
In Re Michael Kursch
Bankr. D. Md. Case No. 11-23932
Chapter 11 Petition filed July 6, 2011
In Re Robert Vartanian
Bankr. E.D. Mich. Case No. 11-58445
Chapter 11 Petition filed July 6, 2011
In Re William Gentner
Bankr. E.D. Mich. Case No. 11-58528
Chapter 11 Petition filed July 6, 2011
In Re BOPH, Inc.
Bankr. D. Nev. Case No. 11-20709
Chapter 11 Petition filed July 6, 2011
See http://bankrupt.com/misc/nvb11-20709p.pdf
See http://bankrupt.com/misc/nvb11-20709c.pdf
In Re Richard Schwab
Bankr. D. Nev. Case No. 11-20740
Chapter 11 Petition filed July 6, 2011
In Re RM Civic Center, LLC
Bankr. D. Nev. Case No. 11-20667
Chapter 11 Petition filed July 6, 2011
See http://bankrupt.com/misc/nvb11-20667.pdf
In Re Padesko Realty Corp.
Bankr. E.D. N.Y. Case No. 11-45884
Chapter 11 Petition filed July 6, 2011
filed pro se
In Re Pristina Realty Corporation
Bankr. S.D. N.Y. Case No. 11-13245
Chapter 11 Petition filed July 6, 2011
See http://bankrupt.com/misc/nysb11-13245.pdf
In Re West End Dividend Strategy Fund I LP
Bankr. S.D. N.Y. Case No. 11-13247
Chapter 11 Petition filed July 6, 2011
See http://bankrupt.com/misc/nysb11-13247.pdf
In Re Corey Development LLC
fka Goldwater Development Inc.
Bankr. W.D. N.C. Case No. 11-31763
Chapter 11 Petition filed July 6, 2011
filed pro se
In Re Ice Treats One, Inc.
Bankr. E.D. Pa. Case No. 11-15317
Chapter 11 Petition filed July 6, 2011
See http://bankrupt.com/misc/paeb11-15317.pdf
In Re Ice Treats Three, Inc.
Bankr. E.D. Pa. Case No. 11-15318
Chapter 11 Petition filed July 6, 2011
See http://bankrupt.com/misc/paeb11-15318.pdf
In Re TBS Trucking, LP
Bankr. E.D. Texas Case No. 11-42114
Chapter 11 Petition filed July 6, 2011
See http://bankrupt.com/misc/txeb11-42114.pdf
In Re Shu-Chen Whitworth
Bankr. C.D. Calif. Case No. 11-18260
Chapter 11 Petition filed July 7, 2011
In Re Thomas Chu
Bankr. C.D. Calif. Case No. 11-13244
Chapter 11 Petition filed July 7, 2011
In Re Trudy Kalush
Bankr. C.D. Calif. Case No. 11-19563
Chapter 11 Petition filed July 7, 2011
In Re Aida Torres
Bankr. N.D. Calif. Case No. 11-47227
Chapter 11 Petition filed July 7, 2011
In Re Pauline Reynald
Bankr. S.D. Calif. Case No. 11-11309
Chapter 11 Petition filed July 7, 2011
In Re Adefisayo Oduwole
Bankr. N.D. Ga. Case No. 11-12286
Chapter 11 Petition filed July 7, 2011
In Re Georgia Training Alliance, Inc.
Bankr. N.D. Ga. Case No. 11-69929
Chapter 11 Petition filed July 7, 2011
filed pro se
In Re Timothy Randall
Bankr. S.D. Ind. Case No. 11-80988
Chapter 11 Petition filed July 7, 2011
In Re Wilfredo Yanes
Bankr. D. Mass. Case No. 11-16507
Chapter 11 Petition filed July 7, 2011
In Re Brent Alberts
Bankr. E.D. Mich. Case No. 11-58604
Chapter 11 Petition filed July 7, 2011
In Re Pedro Sosa
Bankr. D. Nev. Case No. 11-20751
Chapter 11 Petition filed July 7, 2011
In Re Stephen Flanagan
Bankr. D. Nev. Case No. 11-52228
Chapter 11 Petition filed July 7, 2011
In Re Michael Grille
Bankr. D. N.J. Case No. 11-30510
Chapter 11 Petition filed July 7, 2011
In Re The Shapers Inc. of Menlo
Bankr. D. N.J. Case No. 11-30520
Chapter 11 Petition filed July 7, 2011
See http://bankrupt.com/misc/njb11-30520.pdf
In Re Bartizan Data Systems, LLC
aka BDS
Bankr. S.D. N.Y. Case No. 11-23340
Chapter 11 Petition filed July 7, 2011
See http://bankrupt.com/misc/nysb11-23340.pdf
In Re Pella Homes, Inc.
Bankr. S.D. N.Y. Case No. 11-36937
Chapter 11 Petition filed July 7, 2011
See http://bankrupt.com/misc/nysb11-36937.pdf
In Re Kids Campus Preschool & Daycare, LLC
Bankr. D. R.I. Case No. 11-12748
Chapter 11 Petition filed July 7, 2011
See http://bankrupt.com/misc/rib11-12748.pdf
In Re McCarter Farms Landscape & Construction, Inc.
Bankr. D. S.C. Case No. 11-04292
Chapter 11 Petition filed July 7, 2011
See http://bankrupt.com/misc/scb11-04292.pdf
In Re Allied Investment Group, LLC
dba Principal Allied Management
Bankr. N.D. Texas Case No. 11-34468
Chapter 11 Petition filed July 7, 2011
See http://bankrupt.com/misc/txnb11-34468.pdf
In Re Lavonne Carrell
Bankr. W.D. Wash. Case No. 11-18123
Chapter 11 Petition filed July 7, 2011
In Re Oliveray, LLC
Bankr. W.D. Wash. Case No. 11-45472
Chapter 11 Petition filed July 7, 2011
filed pro se
In Re John Burgess
Bankr. W.D. W.Va. Case No. 11-01257
Chapter 11 Petition filed July 7, 2011
In Re James Moran
Bankr. D. Ariz. Case No. 11-19692
Chapter 11 Petition filed July 8, 2011
In Re Z Cleaners #1, LLC
Bankr. D. Ariz. Case No. 11-19680
Chapter 11 Petition filed July 8, 2011
See http://bankrupt.com/misc/azb11-19680.pdf
In Re Marios Polychronas
Bankr. C.D. Calif. Case No. 11-18306
Chapter 11 Petition filed July 8, 2011
In Re Sherry McWoodson
Bankr. N.D. Calif. Case No. 11-47284
Chapter 11 Petition filed July 8, 2011
In Re African Women's Housing Authority, LLC
Bankr. D. Colo. Case No. 11-26198
Chapter 11 Petition filed July 8, 2011
See http://bankrupt.com/misc/cob11-26198.pdf
In Re Shagufta Toor
Bankr. D. Conn. Case No. 11-51395
Chapter 11 Petition filed July 8, 2011
In Re Demetrius Jenkins
Bankr. M.D. Fla. Case No. 11-13047
Chapter 11 Petition filed July 8, 2011
In Re Thomas Ruffin
Bankr. M.D. Fla. Case No. 11-05025
Chapter 11 Petition filed July 8, 2011
In Re Green Dragon Markets LLC
Bankr. D. Hawaii Case No. 11-01913
Chapter 11 Petition filed July 8, 2011
See http://bankrupt.com/misc/hib11-01913.pdf
In Re Pam Dempsey
Bankr. N.D. Ill. Case No. 11-28301
Chapter 11 Petition filed July 8, 2011
In Re Chi Wong
Bankr. D. Kan. Case No. 11-12065
Chapter 11 Petition filed July 8, 2011
In Re James Lowry
Bankr. D. Md. Case No. 11-24105
Chapter 11 Petition filed July 8, 2011
In Re Marius Rochat
Bankr. D. Nev. Case No. 11-20808
Chapter 11 Petition filed July 8, 2011
In Re J.O.C.L. Liquor Store, Inc.
aka Jocelyn Liquor Store
Bankr. S.D. N.Y. Case No. 11-13264
Chapter 11 Petition filed July 8, 2011
See http://bankrupt.com/misc/nysb11-13264.pdf
In Re Salvatore DiPaolo
Bankr. S.D. N.Y. Case No. 11-23345
Chapter 11 Petition filed July 8, 2011
In Re David Evans
Bankr. E.D. N.C. Case No. 11-05271
Chapter 11 Petition filed July 8, 2011
In Re Cornerstone Christian Preschool and Childcare, Inc.
Bankr. S.D. Ohio Case No. 11-14240
Chapter 11 Petition filed July 8, 2011
See http://bankrupt.com/misc/ohsb11-14240.pdf
In Re Display Graphics, Inc.
Bankr. S.D. Texas Case No. 11-35941
Chapter 11 Petition filed July 8, 2011
See http://bankrupt.com/misc/txsb11-35941.pdf
In Re CE Jones & Son Construction, Inc.
Bankr. E.D. Va. Case No. 11-34466
Chapter 11 Petition filed July 8, 2011
See http://bankrupt.com/misc/vaeb11-34466.pdf
In Re John Oosterhoff Testamentary Trust
Bankr. W.D. Wash. Case No. 11-18158
Chapter 11 Petition filed July 8, 2011
See http://bankrupt.com/misc/wawb11-18158.pdf
In Re John Allen
Bankr. D. Mass. Case No. 11-31287
Chapter 11 Petition filed July 9, 2011
In Re FP Tool Inc.
Bankr. S.D. Fla. Case No. 11-29149
Chapter 11 Petition filed July 10, 2011
See http://bankrupt.com/misc/flsb11-29149.pdf
In Re Mahammad Qureshi
Bankr. S.D. Fla. Case No. 11-29148
Chapter 11 Petition filed July 10, 2011
In Re Royan, Inc.
dba Schlotsky's Deli
Bankr. D. Ariz. Case No. 11-19813
Chapter 11 Petition filed July 11, 2011
See http://bankrupt.com/misc/azb11-19813.pdf
In Re Grapevine Productions, LLC
Bankr. C.D. Calif. Case No. 11-39626
Chapter 11 Petition filed July 11, 2011
See http://bankrupt.com/misc/cacb11-39626.pdf
In Re Kyong Chu
Bankr. C.D. Calif. Case No. 11-39666
Chapter 11 Petition filed July 11, 2011
In Re Phyllis Camp
Bankr. N.D. Ill. Case No. 11-28568
Chapter 11 Petition filed July 11, 2011
In Re XRG 22,LLC
Bankr. D. Mass. Case No. 11-42969
Chapter 11 Petition filed July 11, 2011
See http://bankrupt.com/misc/mab11-42969.pdf
In Re Memorial Hospice Incorporated
Bankr. N.D. Miss. Case No. 11-13078
Chapter 11 Petition filed July 11, 2011
See http://bankrupt.com/misc/msnb11-13078.pdf
In Re Lillybeth Rosario Gracia
Bankr. D. Puerto Rico Case No. 11-05875
Chapter 11 Petition filed July 11, 2011
In Re Suite 2525, LLC
Bankr. S.D. N.Y. Case No. 11-13324
Chapter 11 Petition filed July 11, 2011
See http://bankrupt.com/misc/nysb11-13324.pdf
In Re Havelock Land Co.
Bankr. M.D. Pa. Case No. 11-04867
Chapter 11 Petition filed July 11, 2011
See http://bankrupt.com/misc/pamb11-04867.pdf
In Re Crosspoint Security & Consulting Corp.
Bankr. D. Puerto Rico Case No. 11-05866
Chapter 11 Petition filed July 11, 2011
See http://bankrupt.com/misc/prb11-05866.pdf
In Re McKinney Machine Shop, Inc.
Bankr. N.D. Texas Case No. 11-43913
Chapter 11 Petition filed July 11, 2011
See http://bankrupt.com/misc/txnb11-43913.pdf
In Re Bill Bird
Bankr. S.D. Texas Case No. 11-36001
Chapter 11 Petition filed July 11, 2011
In Re ORSA Institute, LLC
Bankr. W.D. Texas Case No. 11-31342
Chapter 11 Petition filed July 11, 2011
See http://bankrupt.com/misc/txwb11-31342.pdf
In Re David Williamson
Bankr. D. Ariz. Case No. 11-19927
Chapter 11 Petition filed July 12, 2011
In Re Barbara Baiz Rodriguez
Bankr. C.D. Calif. Case No. 11-39746
Chapter 11 Petition filed July 12, 2011
In Re Enrique Garcia
Bankr. C.D. Calif. Case No. 11-39762
Chapter 11 Petition filed July 12, 2011
In Re Roman Lys
Bankr. M.D. Fla. Case No. 11-05130
Chapter 11 Petition filed July 12, 2011
In Re Atlanta Pediatric Therapy, Inc.
Bankr. N.D. Ga. Case No. 11-70314
Chapter 11 Petition filed July 12, 2011
See http://bankrupt.com/misc/ganb11-70314.pdf
In Re Reger Development, LLC
Bankr. N.D. Ill. Case No. 11-28670
Chapter 11 Petition filed July 12, 2011
See http://bankrupt.com/misc/ilnb11-28670.pdf
In Re Rohangiz Bahari
Bankr. D. Md. Case No. 11-24400
Chapter 11 Petition filed July 12, 2011
In Re Richard Medveskas
Bankr. D. Mass. Case No. 11-16621
Chapter 11 Petition filed July 12, 2011
In Re Michael McInerney
Bankr. E.D. Mich. Case No. 11-58953
Chapter 11 Petition filed July 12, 2011
In Re Scott Cooney
Bankr. D. Mont. Case No. 11-61349
Chapter 11 Petition filed July 12, 2011
In Re PEMTSI LLC
Bankr. D. Nev. Case No. 11-20997
Chapter 11 Petition filed July 12, 2011
See http://bankrupt.com/misc/nvb11-20997.pdf
In Re Rigoberto Gonzalez
Bankr. D. Nev. Case No. 11-20924
Chapter 11 Petition filed July 12, 2011
In Re Michael Ginaldi
Bankr. E.D. Pa. Case No. 11-15507
Chapter 11 Petition filed July 12, 2011
In Re Innovative Associates,Inc.
Bankr. W.D. Pa. Case No. 11-24397
Chapter 11 Petition filed July 12, 2011
See http://bankrupt.com/misc/pawb11-24397.pdf
In Re Yoon Oh
Bankr. W.D. Wash. Case No. 11-18290
Chapter 11 Petition filed July 12, 2011
In Re PTB, Inc.
dba Flooring by PTB
Bankr. E.D. Va. Case No. 11-15077
Chapter 11 Petition filed July 12, 2011
See http://bankrupt.com/misc/vaeb11-15077.pdf
*********
Monday's edition of the TCR delivers a list of indicative prices
for bond issues that reportedly trade well below par. Prices are
obtained by TCR editors from a variety of outside sources during
the prior week we think are reliable. Those sources may not,
however, be complete or accurate. The Monday Bond Pricing table
is compiled on the Friday prior to publication. Prices reported
are not intended to reflect actual trades. Prices for actual
trades are probably different. Our objective is to share
information, not make markets in publicly traded securities.
Nothing in the TCR constitutes an offer or solicitation to buy or
sell any security of any kind. It is likely that some entity
affiliated with a TCR editor holds some position in the issuers"
public debt and equity securities about which we report.
Each Tuesday edition of the TCR contains a list of companies with
insolvent balance sheets whose shares trade higher than $3 per
share in public markets. At first glance, this list may look like
the definitive compilation of stocks that are ideal to sell short.
Don't be fooled. Assets, for example, reported at historical cost
net of depreciation may understate the true value of a firm's
assets. A company may establish reserves on its balance sheet for
liabilities that may never materialize. The prices at which
equity securities trade in public market are determined by more
than a balance sheet solvency test.
A list of Meetings, Conferences and Seminars appears in each
Wednesday's edition of the TCR. Submissions about insolvency-
related conferences are encouraged. Send announcements to
conferences@bankrupt.com/
On Thursdays, the TCR delivers a list of recently filed
Chapter 11 cases involving less than $1,000,000 in assets and
liabilities delivered to nation's bankruptcy courts. The list
includes links to freely downloadable images of these small-dollar
petitions in Acrobat PDF format.
Each Friday's edition of the TCR includes a review about a book of
interest to troubled company professionals. All titles are
available at your local bookstore or through Amazon.com. Go to
http://www.bankrupt.com/books/to order any title today.
Monthly Operating Reports are summarized in every Saturday edition
of the TCR.
The Sunday TCR delivers securitization rating news from the week
then-ending.
For copies of court documents filed in the District of Delaware,
please contact Vito at Parcels, Inc., at 302-658-9911. For
bankruptcy documents filed in cases pending outside the District
of Delaware, contact Ken Troubh at Nationwide Research &
Consulting at 207/791-2852.
*********
S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter is a daily newsletter co-published
by Bankruptcy Creditors" Service, Inc., Fairless Hills,
Pennsylvania, USA, and Beard Group, Inc., Frederick, Maryland,
USA. Jhonas Dampog, 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 2011. 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 ***