/raid1/www/Hosts/bankrupt/TCR_Public/110912.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
Monday, September 12, 2011, Vol. 15, No. 253
Headlines
8699 BISCAYNE: BuilderFinancial's Loan Rate Not Usurious
A-NGAE1 LLC: Court OKs Kaempfer Crowell as Bankruptcy Counsel
ACCESS INSURANCE: Hires Harris-Petroni as Chapter 11 Attorneys
ACTIVECARE INC: Posts $2.90 Million Net Loss in June 30 Quarter
AIRVANA NETWORK: Moody's Affirms 'B3' Corporate Family Rating
ALLENDE CORPORATION: Case Summary & 4 Largest Unsecured Creditors
ALLEGHENY COUNTY: S&P Raises Rating on Revenue Bonds From 'BB+'
AMTRUST FINANCIAL: Files Amended Joint Plan of Reorganization
APEX AVIATION: Case Summary & 19 Largest Unsecured Creditors
APPLIED DNA: Extends Expiration of Warrants and Options to 2016
ASSOCIATED MATERIALS: Moody's Affirms 'B3' Corp. Family Rating
BAINBRIDGE REALTY: Portions of Investment Trust Suit Goes to Trial
BEAR MOUNTAIN: U.S. Trustee Unable to Appoint Creditors Panel
BEAR MOUNTAIN: Sec. 341 Creditors' Meeting Set for Oct. 18
BELTWAY ONE: Cash Collateral Hearing Continued Until Sept. 15
BERNARD L. MADOFF: Judge Nixes Investors Bid for Docs
BLACKBOARD INC: S&P Lowers Corporate Credit Rating to 'B'
BRIDGEVIEW AEROSOL: Settles With Wells Fargo on Claims, Cash Use
BROOKLYN FEDERAL: Receives Deficiency Notice From NASDAQ
BURLINGTON COAT: Bank Debt Trades at 5% Off in Secondary Market
C&D TECHNOLOGIES: Incurs $1.1 Million Net Loss in July 31 Quarter
CALUMET SPECIALTY: Moody's Affirms 'B2' Corporate Family Rating
CALUMET SPECIALTY: S&P Rates $200-Mil. Sr. Unsecured Notes at 'B'
CARGO TRANSPORTATION: Committee Has Opposition to Plan
CEBRIDGE CONNECTIONS: Debt Trades at 4% Off in Secondary Market
COMMERCE CENTRE: Case Summary & 4 Largest Unsecured Creditors
COMSTOCK MINING: Has 2nd Phase Drill Results on Dayton Area
CORTEX PHARMA: Posts $356,100 Net Loss in 2nd Quarter
DECISION INSIGHT: S&P Affirms 'B' Long-Term Corp. Credit Rating
DIGITAL REALTY: S&P Rates $250-Mil. Preferred Stock at 'BB+'
DRYSHIPS INC: George Economou Discloses 14% Equity Stake
EAGLE CROSSROADS: Seeks to Use Rents to Fund Chapter 11
EAGLE CROSSROADS: Sec. 341 Creditors' Meeting Set for Oct. 6
EDGEN MURRAY: Extends Maturity of JPMorgan Facility to May 2014
EGPI FIRECREEK: Inks Equity Purchase Agreement with Southridge
EVERGREEN ENERGY: Libra Advisors Discloses 15.4% Equity Stake
FAITH CHRISTIAN: Taps Judkins Simpson to Handle Marriage Action
FAITH CHRISTIAN: U.S. Trustee Unable to Form Committee
FIRST NATIONAL: Can Use Capmark's Cash Collateral Until Sept. 30
FIRST NATIONAL: Closed; CharterBank Assumes All Deposits
GARDEN RIDGE: Gets Second Act With AEA Investors Buyout
GARDEN RIDGE: Moody's Assigns 'B2' Corporate Family Rating
GRAYMARK HEALTHCARE: Mark Moore Discloses 8.26% Equity Stake
GREAT ATLANTIC: Robbins Geller Files Securities Class Action Suit
GREEN EARTH: Incurs $12.2 Million Net Loss in Fiscal 2011
GREEN MOUNTAIN: Moody's Says Unit Sale to Lift Liquidity Profile
GULF OFFSHORE: S&P Withdraws 'CCC+' Corporate Credit Rating
HOMBURG INVEST: To Restructure Under CCAA
HOTEL AIRPORT: To Hire Latimer Biaggi for P.R. Airport Issues
HOTEL AIRPORT: Hires Lizarribar-Masini as PPPA Counsel
HOVNANIAN ENTERPRISES: Incurs $50.9MM Net Loss in July 31 Quarter
HUNTSMAN ICI: Bank Debt Trades at 7% Off in Secondary Market
ICE TREATS: Landlords Violated Automatic Stay in Ending Lease
INC RESEARCH: S&P Assigns 'B' Corporate Credit Rating
J.CREW: Bank Debt Trades at 10% Off in Secondary Market
J.C. EVANS: Files Schedules of Assets & Liabilities
LAS VEGAS SANDS: Bank Debt Trades at 6% Off in Secondary Market
LAUFER BUILDERS: Case Summary & 11 Largest Unsecured Creditors
LLS AMERICA: Stern Doesn't Apply to Substantive Consolidation
MAGNETEK INC: Gets Deficiency Notice From NYSE
MAQ MANAGEMENT: Wants Messana to Replace Talarchyk Merrill
MAQ MANAGEMENT: Seeks to Employ Newmark for Eviction Matters
MAYSVILLE INC: Wants Fifteen Encore's Case Dismissal Plea Denied
MEDPACE INC: S&P Assigns 'B+' Corporate Credit Rating
MONTEBELLO, CA: Wins Dismissal of Lawsuit by Local Businessman
MOUND ROAD: Case Summary & 3 Largest Unsecured Creditors
MSR RESORT: Buyer Offers $170 Million for Doral Golf
NAVISTAR INT'L: Posts $1.4 Billion Net Income in July 31 Quarter
NEBRASKA BOOK: Can Execute and Implement Plan Support Agreement
NEIMAN MARCUS: Bank Debt Trades at 6% Off in Secondary Market
NEW LEAF: Scott Ricketts Resigns from Board of Directors
NEWPAGE CORP: Moody's Cuts Probability of Default Rating to 'D'
OTERO COUNTY: Court Approves KCC as Claims Agent
PACIFICUS REAL ESTATE: Seeks to Employ Carmody Meach as Accountant
PACIFICUS REAL ESTATE: Court OKs Levene Neale as Counsel
PERKINS & MARIE: Wins OK for Chapter 11 Plan Vote
PHILLIPS RENTAL: Files First Modified Disclosure Statement
PIEDMONT CENTER: John Northen Appointed as Chapter 11 Trustee
PROTEONOMIX INC: Sr. Management Meets with Investment Community
QUALITY HOME: At Risk of Return to Chapter 11
QUALTEQ INC: Grounds for Moving Case Remains a Mystery
QUANTUM CORP: Dennis Wolf Resigns from Board of Directors
RADLAX GATEWAY: High Court Ruling Could Clarify Credit Bid Issue
RASER TECHNOLOGIES: Sues UTC, Pratt & Whitney for Fraud
RCC NORTH: Proceeding on U.S. Bank Plan Rendered Moot
READER'S DIGEST: Moody's Cuts Corporate to 'B3'; Outlook Negative
REALOGY CORP: Bank Debt Trades at 10% Off in Secondary Market
SBARRO INC: Court Approves Key Employee Incentive Plan
SCIENTIFIC GAMES: S&P Keeps 'BB' Corporate Credit Rating
SENTINEL MANAGEMENT: BNY Transfers Hurt Creditors, 7th Circ. Told
SHUR-VALU STAMPS: Dist. Ct. to Hear Avoidance Suit v. Mills et al.
SIGNATURE STYLES: Judge Clears to Sell Assets to Patriarch
SOLYNDRA LLC: Over 1,000 Former Employees Now Looking for Jobs
SOLYNDRA LLC: Faces Criminal Probe; FBI Raids Fremont HQ
SOUTH EDGE: Ch. 11 Trustee Wants to Disqualify Bogatz Attorney
SOUTHWEST GEORGIA: Files Chapter 11 Restructuring Plan
SOUTHWEST SPORTS: Bankr. Ct. Abstains From Suit v. Kleem et al.
STILLWATER INVESTMENT: Lists $8.05 Million in Assets
SURETY CAPITAL: 5th Cir. Affirms Atty. Fees in Bank of Texas Suit
SURVIVAL INSURANCE Case Summary & 15 Largest Unsecured Creditors
SWAMI SHREE: Can Use Secured Creditors' Cash Through Oct. 15
TALON THERAPEUTICS: James Flynn Discloses 33.6% Equity Stake
THINKFILM INC: Judge Rejects Trustee's Bid to Merge Ch. 11 Cases
TELX ACQUISITION: Moody's Assigns 'B3' Corporate Family Rating
TENET HEALTHCARE: Rights Agreement with BNY Expires Sept. 12
TP INC: Chapter 7 Case Conversion Hearing Continued to Sept. 29
TRIBUNE CO: Bank Debt Trades at 42% Off in Secondary Market
TRIDENT PROPERTIES: Case Summary & 2 Largest Unsecured Creditors
UNIGENE LABORATORIES: Appoints T. Odlaug as Independent Director
UNIVISION COMMS: Bank Debt Trades at 14% Off in Secondary Market
UNO RESTARUANT: Closes Restaurant in Elm Grove
USAM CALHOUN: Sec. 341 Creditors' Meeting Set for Oct. 11
UTEX COMMUNICATIONS: Seeks Relief From Amended Order to File Plan
VALENCE TECHNOLOGY: Five Directors Elected at Annual Meeting
VINEYARD AT SERRA: Hires David W. Meadows as Counsel
VINEYARD AT SERRA: Hires Keller Williams/West as Property Broker
VISUALANT INC: Receives First Patent on SPM Technology
VITAMINSPICE: Seeks Damages for Involuntary Filing
WALTER NG: Faces Securities Fraud Class Action in California
WELDING TECHNIQUES: Files for Chapter 11 Bankruptcy Protection
WELDING TECHNIQUES: Case Summary & 20 Largest Unsecured Creditors
WELLCARE HEALTH: Moody's Assigns 'B1' to Planned Bond Issuance
WILLIAMS LOVE: Expects to Pay Creditors in Full If Given Time
WOLF MOUNTAIN: To Employ Zimmerman Jones as Appellate Counsel
WONDER AUTO: Gets of Letter From Nasdaq Hearings Panel
ZOGENIX INC: Amends 12-Mil. Common Shares Offering on Form S-1
* S&P's Global Corporate Default Tally Rises to 28 in 2011
* Florida Bank Shuttered; Year's Failures Now 71
* 2011 Large Chapter 11 Cases Increase to 48
* All Bankruptcy Types Continue Falling in August
* Avenue Capital Raises Nearly $200M for New Distressed Fund
* Carlyle Group Gets Set for Public Stock Debut
* Forty-Three Mintz Levin Attorneys Included in Best Lawyers in US
* Weil Scores Restructuring Ace from Jones Day
* Top Judge Pushes for Bankruptcy Venue Reform
* Bankr. Judge Edward Godoy Gets 14-Year Term of Office
* BOND PRICING -- For Week From Sept. 5 - 9, 2011
*********
8699 BISCAYNE: BuilderFinancial's Loan Rate Not Usurious
--------------------------------------------------------
In the lawsuit, 8699 BISCAYNE, LLC, v. INDIGO REAL ESTATE, LLC, as
assignee of WESTLB AG, & WESTLB AG, a Foreign Corporation
BUILDERFINANCIAL, CORP., a Florida corporation BUILDER FUNDING,
LLC, a Delaware limited liability company, BFSPE, LLC a Delaware
limited liability company, BFWEST, LLC, a Delaware limited
liability company, Adv. Proc. No. 08-1749 (Bankr. S.D. Fla.),
Bankruptcy Judge A. Jay Cristol ruled that the Defendants did not
subject the Plaintiff to an unlawful rate of interest in
connection with a promissory note, mortgage and other loan
documents as executed between the Plaintiff and the Defendants, on
April 2, 2009. The Commitment Letter provided for the issuance of
a loan to the Plaintiff by BUILDERFINANCIAL CORP., through its
affiliated entity, BUILDER FUNDING, LLC, and dictated that the
maximum collective amount of the loan advances would total
$4,247,150 over a term of 27 months with a stated interest rate of
8% per annum. A copy of Judge Cristol's Sept. 6, 2011 Memorandum
Order is available at http://is.gd/d6bdnKfrom Leagle.com.
Counsel to the Defendants is:
James W. Carpenter, Esq.
ANGELO & BANTA, P.A.
SunTrust Center
515 East Las Olas Blvd., Suite 850
Fort Lauderdale, FL 33301
Tel: 954-766-9930
Fax: 954-766-9937
E-mail: jwc@angelolaw.com
Miami Beach, Florida-based 8699 Biscayne, LLC, filed for Chapter
11 bankruptcy (Bankr. S.D. Fla. Case No. 08-22814) on Sept. 4,
2008, represented by Paul DeCailly, Esq. In its petition, the
Debtor estimated $1 million to $10 million in both assets and
debts.
A-NGAE1 LLC: Court OKs Kaempfer Crowell as Bankruptcy Counsel
-------------------------------------------------------------
A-NGAE1, LLC, sought and obtained permission from the U.S.
Bankruptcy Court for the District of Nevada to employ Kaempfer
Crowell Renshaw Gronauer & Fiorentino to represent the Debtor in
the bankruptcy proceedings.
The Debtor entered into an engagement agreement with Kaempfer
Crowell which provides for a retainer of $10,000, which has been
paid by the Debtor's parent entity JV Properties, LLC. The parent
is a co-proponent in the Chapter 11 plan for the Debtor. The
parent has engaged White & Case to represent its interest in the
case.
Kaempfer Crowell's professionals and paraprofessionals hourly
rates range from $125 to $450. These attorneys are assigned in
the case and their hourly rates are:
Peter C. Bernhard $450
Georganne W. Bradley $400
Lauren A. Pena $265
To the best of the Debtor's knowledge, Kaempfer Crowell is a
"disinterested person" as that term is defined in Section 101(14)
of the Bankruptcy Code.
Kaempfer Crowell disclosed that it has served as counsel to the
parent and other members of the Focus group of companies in the
past. Mark Fiorentino, a shareholder of Kaempfer Cromwell, serves
as senior vice president of government affairs for Focus Property
Group. Mr. Fiorentino, owns a nominal interest in Focus Property
Group, a majority ower of the parent. Mr. Fiorentino has not and
will not be performing services for the Debtor in connection with
his employment as an attorney at Kaempfer Crowell.
About A-NGAE1, LLC
Las Vegas, Nevada-based A-NGAE1, LLC, a Nevada limited liability
company, filed for Chapter 11 bankruptcy protection (Bankr. D.
Nev. Case No. 10-18719) on May 12, 2010. Georganne W. Bradley,
Esq., at Kaempfer Crowell Renshaw Gronauer & Fiorentino, in Las
Vegas, Nevada, serves as the Debtor's bankruptcy counsel. In its
schedules, the Debtor disclosed assets of $14,621,820 and
liabilities of $9,900,000 as of the Petition Date.
Affiliates B-SWDE3, LLC (Bankr. D. Nev. Case No. 09-29051), et
al., filed separate Chapter 11 petitions.
No request was made for the appointment of a trustee or examiner,
and no official committees were appointed.
On Feb. 17, 2011, Debtor A-NGAE1, LLC, and its parent, N.G.A.#2,
LLC, filed the disclosure statement for the Debtor's Plan of
Reorganization dated July 27, 2009, and the Amended Plan of
Reorganization dated Feb. 17, 2011. On May 18, 2011, the
Bankruptcy Court approved the disclosure statement and confirmed
the Amended Plan. The New Operating Agreement is approved and
will govern the affairs of the Debtor on and after the Effective
Date without further of the Bankruptcy Court.
ACCESS INSURANCE: Hires Harris-Petroni as Chapter 11 Attorneys
--------------------------------------------------------------
Access Insurance Services, Inc., seeks permission from the Court
to employ Stephen R. Harris, Esq., and his law firm of Harris-
Petroni, Ltd., as Chapter 11 attorneys pursuant to a general
retainer.
The Debtor has paid the firm a $40,000 retainer. Upon depletion
of the retainer, the Debtor will pay firm on an hourly basis at
these rates:
Stephen R. Harris, Esq. $400 per hour
Chris D. Nichols, Esq. $375 per hour
Gloria M. Petroni, Esq. $350 per hour
Paraprofessionals $225 per hour
Mr. Harris attests that he and members of his firm do not have any
connection with the Debtor, its creditors or any other party in
interest, or their attorneys and accountants, and the U.S.
Trustee.
Access Insurance Services, Inc., in Reno, Nevada, filed for
Chapter 11 bankruptcy (Bankr. D. Nev. Case No. 11-52830) on
Sept. 1, 2011. Judge Bruce T. Beesley presides over the case.
In its petition, the Debtor estimated $10 million to $50 million
in assets and debts. The petition was signed by Jeffrey P.
Shaffer, director.
The Debtor's counsel may be reached at:
Stephen R. Harris, Esq.
HARRIS - PETRONI, LTD.
417 West Plumb Lane
Reno, NV 89509
Telephone: 775-786-7600
Facsimile: 775-786-7764
E-mail: steve@renolaw.biz
ACTIVECARE INC: Posts $2.90 Million Net Loss in June 30 Quarter
---------------------------------------------------------------
ActiveCare, Inc., filed its quarterly report on Form 10-Q,
reporting a net loss of $2.90 million on $184,899 of revenues for
the three months ended June 30, 2011, compared with a net loss of
$2.66 million on $145,140 of revenues for the three months ended
June 30, 2010.
The Company reported a net loss of $6.25 million on $573,667 of
revenues for the nine months ended June 30, 2011, compared with a
net loss of $5.63 million on $383,500 of revenues for the nine
months ended June 30, 2010.
The Company's balance sheet at June 30, 2011, showed
$1.22 in total assets, $1.33 million in total liabilities,
and stockholders' equity of $112,095.
As reported in the Troubled Company Reporter on Dec. 8, 2010,
Hansen, Barnett & Maxwell, P.C., in Salt Lake City, Utah,
expressed substantial doubt about ActiveCare's ability to continue
as a going concern, following the Company's results for the fiscal
year ended Sept. 30, 2010. The independent auditors noted that
the Company has incurred recurring operating losses and has an
accumulated deficit.
A copy of the Form 10-Q is available at http://is.gd/ZluPmt
About ActiveCare Inc.
West Valley City, Utah-based ActiveCare, Inc.
-- http://www.activecare.com/-- is organized into two business
segments based primarily on the nature of the Company's products.
The Stains and Reagents segment is engaged in the business of
manufacturing and marketing medical diagnostic stains, solutions
and related equipment to hospitals and medical testing labs. The
Care Services segment is engaged in the business of developing,
distributing and marketing mobile health monitoring and concierge
services to distributors and customers.
AIRVANA NETWORK: Moody's Affirms 'B3' Corporate Family Rating
-------------------------------------------------------------
Moody's Investors Service said that Airvana Network Solutions
Inc.'s proposed amendment to its senior secured term loan would
have not affect the company's B3 corporate family rating,
probability of default rating and the senior secured term loan
rating.
The proposed amendment will reduce the excess cash flow sweep for
the September 2011 and December 2011 quarters. The excess cash
flow sweep will be lowered from 100% to 50%, to the extent that
the company's actual performance exceeds projections provided to
the lenders in March 2011, such that the company's debt balances
are at least $25 million below the March 2011 plan, and
Debt/EBITDA leverage is at least 20% below the plan. While
Moody's notes that the change in the excess cash sweep is a credit
negative, especially given the front loaded nature of the
company's bookings, the amount of cash outflows is projected to be
modest at $35 million over the next two quarters. Moreover,
increased billings have accelerated debt paydown since the close
of the $420 million term loan in 1Q 2011, resulting in a decrease
in the current loan balance to $292 million.
The rating outlook is stable.
Moody's has taken these rating actions:
Affirmed:
Issuer: Airvana Network Solutions Inc.
-- Corporate Family Rating, B3
-- Probability of Default Rating, B3
-- $420 million Senior Secured Term Loan, B3 (LGD4, 50%)
Rating Outlook: Stable
Airvana's B3 Corporate Family Rating reflects the dual nature of
the company's strong position as the sole supplier of critical
software that enables data communications on third generation (3G)
wireless CDMA networks deployed by Ericsson AB (formerly Nortel
Networks) and the near certain phase out of that 3G technology by
wireless carriers over the next decade. Therefore, the ratings are
tempered by the project finance nature of the company's revenue
stream over the next several years, which will be fully dependent
on orders from Ericsson, and by extension, from major end users
Verizon Wireless ("VZW") and Sprint Nextel. Given the uncertainty
in the timing of the slowdown of orders, acceleration in 4G
deployments by some carriers, and a shorter remaining tail in EV-
DO orders, Moody's is concerned that the company has amended the
terms of its $420 million senior secured term loan to eliminate
the 100% excess cash flow sweep for Q3 2011 and Q4 2011, and to
permit cash to be used for dividends, acquisitions or capital
investment. This amendment will slow down the accelerated rate of
principal repayment previously in place. On the other hand, the
ratings are supported by the company's continued high margins,
accelerated debt repayment thus far in 2011, and outperformance of
billings during the first half of the year.
The ratings are also supported by Airvana's very good liquidity,
modest leverage, limited capital expenditure needs and robust
current free cash flow generation. Moody's projects the company
will generate about $100 million of free cash flow for 2012, and
given the new amended terms, the rating agency expects the
company's cash balances to be higher than expected under the
previous loan terms, but still modest.
The stable outlook reflects Moody's view that the Company's
overall credit profile is unlikely to change significantly over
the next 18-24 months.
What Could Change the Rating -- UP
As the long term business sustainability is the primary driver
influencing the CFR, an upgrade is unlikely over the next 12-18
months. However, upward rating pressure would ensue if Airvana's
billings exceed its plan and the company is able to commensurately
reduce its outstanding debt.
What Could Change the Rating - DOWN
Downward rating pressure could develop if the company's free cash
flow declines faster than expected due to diminishing orders from
its customers, thereby endangering a timely repayment of the debt.
The principal methodology used in this rating was Moody's
Technology Software Methodology, published in May 2009.
Airvana, located in Chelmsford, MA, is a provider of network
infrastructure products used by wireless operators primarily in
the United States. The company generated about $270 million in
billings in 2010.
ALLENDE CORPORATION: Case Summary & 4 Largest Unsecured Creditors
-----------------------------------------------------------------
Debtor: Allende Corporation
P.O. Box 51085
Toa Baja, PR 00950-1085
Bankruptcy Case No.: 11-07555
Chapter 11 Petition Date: September 1, 2011
Court: United States Bankruptcy Court
District of Puerto Rico (Old San Juan)
Debtor's Counsel: Wigberto Lugo Mender, Esq.
LUGO MENDER & CO
Centro Internacional de Mercadeo
Carr 165 Torre 1, Suite 501
Guaynabo, PR 00968
Tel: (787) 707-0404
E-mail: wlugo@lugomender.com
Scheduled Assets: $1,214,749
Scheduled Debts: $809,765
A list of the Company's four largest unsecured creditors filed
together with the petition is available for free at
http://bankrupt.com/misc/prb11-07555.pdf
The petition was signed by Victor M. Allende Reyes, president.
ALLEGHENY COUNTY: S&P Raises Rating on Revenue Bonds From 'BB+'
---------------------------------------------------------------
Standard & Poor's Ratings Services raised its rating to 'BBB-'
from 'BB+' on Allegheny County Industrial Development Authority,
Pa.'s series 2010A charter school revenue bonds, issued on behalf
of School Facilities Development Inc. (SFD) for Propel Charter
Schools - Montour (Propel Montour).
"The upgrade reflects our assessment of Propel Montour's
successful five-year charter renewal in April 2011, while
maintaining positive operating results as well as strong debt
service coverage and liquidity position," said Standard & Poor's
credit analyst Carolyn McLean. "In addition, Propel Montour
reported above-average academic performance for the region and
good demand," said Ms. McLean.
Partially offsetting credit factors, in Standard & Poor's opinion,
include:
The inherent future risk associated with the possibility of
charter nonrenewal or revocation;
The lack of practical independence between the respective
board members that hold the charter for Propel Montour and
other Propel Charter Schools; and
The moderately aggressive growth plans of Propel Chart
Schools.
The stable outlook reflects Standard & Poor's expectation that
enrollment levels will continue to generate adequate per pupil
revenues to provide good debt service coverage. In addition,
Standard & Poor's expects management to maintain a good liquidity
position and strong reserves despite an administrative fee
structure that Propel Montour pays from its net operating profits.
Standard & Poor's could consider a higher rating if Propel Montour
continues to report strong debt service coverage, liquidity
position, and demand, as well as maintains its strong financial
position through the expansion of other Propel Charter Schools and
demonstrates more diversity in board oversight. "We could consider
a lower rating if the school reports weak debt service coverage,
deterioration in its liquidity position, and weakened demand, as
well as increased management fees, which help to fund operating
losses in other schools in the Propel network," S&P added.
AMTRUST FINANCIAL: Files Amended Joint Plan of Reorganization
-------------------------------------------------------------
BankruptcyData.com reports that AmTrust Financial (nka AmFin
Financial [AFC]) filed with the U.S. Bankruptcy Court an Amended
Joint Plan of Reorganization and related Disclosure Statement.
According to the Disclosure Statement, the AmFin Plan incorporates
a proposed compromise and settlement regarding the holders of the
Senior Notes Claims. S
Specifically, the terms of the Plan provides that holders of
senior Notes will have allowed unsecured claims in an agreed
aggregate amount of $100,763,415 and that the subordinated notes
shall have an allowed unsecured claims in an agreed aggregate
amount of $53,628,210.
About AmTrust Financial
AmTrust Financial Corp (PINK: AFNL) was the owner of the AmTrust
Bank. AmTrust was the seventh-largest holder of deposits in South
Florida, with $4.7 billion in deposits and 21 branches.
In November 2008, the Office of Thrift Supervision issued a cease
and desist order requiring AmTrust to improve its capital ratios.
AmTrust Financial, together with affiliates that include AmTrust
Management Inc., filed for Chapter 11 bankruptcy protection
(Bankr. N.D. Ohio Case No. 09-21323) on Nov. 30, 2009. The debtor
subsidiaries include AmFin Real Estate Investments, Inc., formerly
AmTrust Real Estate Investments, Inc. (Case No. 09-21328).
G. Christopher Meyer, Esq., Christine M. Piepont, Esq., and Sherri
L. Dahl, Esq., at Squire Sanders & Dempsey (US) LLP, in Cleveland,
Ohio; and Stephen D. Lerner, Esq., at Squire Sanders & Dempsey
(US) LLP, in Cincinnati, Ohio, serve as counsel to the Debtors.
Kurtzman Carson Consultants serves as claims and notice agent.
Attorneys at Hahn Loeser & Parks LLP serve as counsel to the
Official Committee of Unsecured Creditors. AmTrust Management
estimated $100 million to $500 million in assets and liabilities
in its Chapter 11 petition.
AmTrust Bank was not part of the Chapter 11 filings. On Dec. 4,
2009, AmTrust Bank was closed by regulators and the Federal
Deposit Insurance Corporation was named receiver. New York
Community Bank, in Westbury, New York, assumed all of the deposits
of AmTrust Bank pursuant to a deal with the FDIC.
APEX AVIATION: Case Summary & 19 Largest Unsecured Creditors
------------------------------------------------------------
Debtor: Apex Aviation Corporation
1448-1450 Sally Ride Dr.
Concord, CA 94520
Bankruptcy Case No.: 11-49354
Type of Business: Aviation Sales/Services
Chapter 11 Petition Date: August 31, 2011
Court: United States Bankruptcy Court
Northern District of California (Oakland)
Judge: William J. Lafferty
Debtor's Counsel: Donald W. Lamson, Esq.
LAW OFFICE OF DONALD W. LAMSON
315 S. Coast Highway 101
Encinitas, CA 92101
Tel: (760) 803-5493
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
A list of the Company's 19 largest unsecured creditors filed
together with the petition is available for free at
http://bankrupt.com/misc/canb11-49354.pdf
The petition was signed by James E. Markel, president.
APPLIED DNA: Extends Expiration of Warrants and Options to 2016
---------------------------------------------------------------
Applied DNA Sciences, Inc., extended the expiration date of
certain warrants to purchase 6,400,000 shares of common stock, par
value $0.001 per share of the Company granted to James A. Hayward,
chief executive officer of the Company, and options to purchase
500,000 shares of Common Stock granted pursuant to the Company's
2005 Incentive Stock Plan to Kurt H. Jensen, chief financial
officer of the Company. Both the Warrants and Stock Options were
granted on Sept. 1, 2006, at an exercise price of $0.09 per share,
and would have expired on Aug. 31, 2011. The expiration dates of
the Warrants and Stock Options were extended for an additional
five years until Aug. 31, 2016.
About Applied DNA
Stony Brook, N.Y.-based Applied DNA Sciences, Inc., is principally
devoted to developing DNA embedded biotechnology security
solutions in the United States.
As reported in the Troubled Company Reporter on Dec. 21, 2010,
RBSM LLP, in New York, expressed substantial doubt about Applied
DNA Sciences' ability to continue as a going concern, after
auditing the Company's financial statements for fiscal year ended
Sept. 30, 2010. The independent auditors noted that the Company
has suffered recurring losses and does not have significant cash
or other material assets, nor does it have an established source
of revenues sufficient to cover its operations.
The Company reported a net loss of $7.91 million on $519,844 of
sales for fiscal 2010, compared with net income of $3.94 million
on $295,162 of sales for fiscal 2009.
The Company's balance sheet at June 30, 2011, showed $893,586 in
total assets, $4.86 million in total liabilities, all current, and
a $3.97 million total deficiency in stockholders' equity.
ASSOCIATED MATERIALS: Moody's Affirms 'B3' Corp. Family Rating
--------------------------------------------------------------
Moody's Investors Service affirmed the ratings of Associated
Materials, LLC -- Corporate Family and Probability of Default
Ratings at B3 and its Senior Secured Notes at B3. In a related
rating action, Moody's changed the rating outlook to negative from
stable.
These ratings/assessments were affected by this action:
Corporate Family Rating affirmed at B3;
Probability of Default affirmed at B3; and,
$730 million Senior Secured Notes due 2017 affirmed at B3 (LGD4,
53%).
RATINGS RATIONALE
The B3 Corporate Family Rating reflects exposure to weak industry
conditions in the repair and remodeling sector and new home
construction - the main drivers of the company's revenues.
Operating margins are compressing. Depressed prospects for major
remodeling projects and weak forecasts for new housing
construction do not bode well for the company's operating
performance. Additionally, the rating incorporates the company's
elevated leverage and weak interest coverage ratios. At the same
time, Moody's recognizes Associated's sound business fundamentals
as one of the larger manufacturers and distributors of windows and
vinyl siding in North America. Some revolver availability and no
near-term maturities give the company some financial flexibility
to contend with ongoing uncertainties in its end markets.
The change in rating outlook to negative from stable results from
Moody's view that Associated's financial performance will continue
to be hindered by its leveraged capital structure and weak
prospects for its end markets well into 2012.
Factors which might result in negative rating actions include
erosion in Associated's liquidity profile or continued
deterioration in operating performance that results in EBITA-to-
interest expense sustained below 1.0 times or debt-to-EBITDA
remaining above 7.5 times (all ratios incorporate Moody's standard
adjustments).
A stabilization of the ratings could occur if Associated improves
its liquidity profile and demonstrates better operating
performance that results in EBITA-to-interest expense remaining
above 1.0 times and trending towards 1.5 times or debt-to-EBITDA
falls below 7.5 times, but trending towards 6.0 times (all ratios
incorporate Moody's standard adjustments).
The principal methodology used in rating Associated Materials, LLC
was the Global Manufacturing Industry Methodology published in
December 2007. Other methodologies used include Loss Given
Default for Speculative-Grade Non-Financial Companies in the U.S.,
Canada and EMEA published in June 2009.
Associated Materials, LLC, headquartered in Cuyahoga Falls, Ohio,
is a North American manufacturer and distributor of exterior
residential building products. The company's core products are
vinyl windows, vinyl siding, aluminum trim coil, and aluminum and
steel siding and accessories. Associated is also a distributor of
roofing materials, insulation, and exterior doors produced by
third parties. Hellman & Friedman LLC, ("H&F"), through its
respective affiliates, is the primary owner of Associated.
Revenues for the twelve months through July 2, 2011 totaled
approximately $1.1 billion.
BAINBRIDGE REALTY: Portions of Investment Trust Suit Goes to Trial
------------------------------------------------------------------
District Judge William E. Smith ruled that some of the claims in a
dispute concerning a failed mortgage loan transaction, or so-
called "hard money loan," may proceed to trial, while others must
be dismissed as a matter of law. In a 24-count complaint, 514
Broadway Investment Trust sued Rhode Island residents who were
involved at the borrower's end of the transaction, including Rhode
Island businessman Craig Rapoza; his former real estate investment
company, Bainbridge Realty Corp. or Bainbridge Realty, Inc.;
Rapoza's lawyer Peter D'Amico; D'Amico's law firm, D'Amico &
Testa, Attorneys at Law, P.C.; real estate agent Michael F. Behm;
Behm's employer Helen R. Coupe d/b/a Re/Max Metro; real estate
appraiser Michael J. Miale, Sr.; Miale's employer Statewide Real
Estate Appraisal, LLC, a/k/a Statewide Real Estate Appraisal
Corporation; and John Does 1-10.
514 Broadway Investment Trust is based in California, as is its
Trustee Robert Blechman, the businessman who found the two
investors and formed the Investment Trust with the purpose of
engaging in the transaction. Mr. Blechman has worked as a
paralegal for a law firm, as a loan officer for a realty services
company, and recently, he qualified for a real estate sales
license.
The lawsuit is styled as, 514 BROADWAY INVESTMENT TRUST, UDT
8/22/05, by and through its TRUSTEE, ROBERT A. BLECHMAN,
Plaintiff, v. CRAIG F. RAPOZA; BAINBRIDGE REALTY CORP. a/k/a
BAINBRIDGE REALTY, INC.; PETER P. D'AMICO; D'AMICO & TESTA,
ATTORNEYS AT LAW, P.C.; MICHAEL F. BEHM; HELEN R. COUPE d/b/a
RE/MAX METRO; MICHAEL J. MIALE, SR.; STATEWIDE REAL ESTATE
APPRAISAL, LLC a/k/a STATEWIDE REAL ESTATE APPRAISAL CORPORATION
and JOHN DOES 1-10, Defendants, C.A. No. 08-369 S (D. R.I.). A
copy of the Court's Sept. 7, 2011 Opinion and Order is available
at http://is.gd/ZvzVh9from Leagle.com.
Bainbridge Realty Corp. filed for Chapter 11 bankruptcy (Bankr.
D. R.I. Case No. 06-11003) on Sept. 19, 2006. Robert Pierce,
Esq., served as the Debtor's counsel. It estimated $1 million to
$10 million in assets and $500,000 to $1 million in debts. The
Investment Trust won Bankruptcy Court permission to foreclose on
514 Broadway, then bought it at a May 2007 foreclosure auction.
BEAR MOUNTAIN: U.S. Trustee Unable to Appoint Creditors Panel
-------------------------------------------------------------
Robert D. Miller Jr., the United States Trustee for the Eastern
District of Washington, in Spokane, informed the Bankruptcy Court
that he is not appointing an official committee of unsecured
creditors in the bankruptcy case of Bear Mountain Ranch Holdings
LLC due to the lack of entities eligible to serve on the unsecured
creditors' committee.
Chelan, Washington-based Bear Mountain Ranch Holdings, LLC, fka
Bear Mountain, LLC, and dba Bear Mountain Orchards, filed for
Chapter 11 bankruptcy (Bankr. E.D. Wash. Case No. 11-04354) on
Sept. 1, 2011, before Judge Patricia C. Williams. Barry W.
Davidson, Esq. -- cnickerl@dbm-law.net -- at Davidson Backman
Medeiros PLLC, serves as the Debtor's counsel.
BEAR MOUNTAIN: Sec. 341 Creditors' Meeting Set for Oct. 18
----------------------------------------------------------
Robert D. Miller Jr., the United States Trustee for the Eastern
District of Washington, in Spokane, will convene a First Meeting
of Creditors pursuant to Sec. 341(a) of the Bankruptcy Code in the
Chapter 11 case of Bear Mountain Ranch Holdings, LLC, on Oct. 18,
2011, at 2:30 p.m. at Wenatchee Federal Bldg, 301 Yakima Street Rm
M08, in Wenatchee, Washington.
The debtor's representative must be present at the meeting to be
questioned under oath by the trustee and by creditors. Creditors
are welcome to attend, but are not required to do so. The meeting
may be continued and concluded at a later date without further
notice. The court, after notice and a hearing, may order that the
United States trustee not convene the meeting if the debtor has
filed a plan for which the debtor solicited acceptances before
filing the case.
Proofs of claim are due by Jan. 16, 2012. Government proofs of
claim are due by Feb. 28, 2012.
Chelan, Washington-based Bear Mountain Ranch Holdings, LLC, fka
Bear Mountain, LLC, and dba Bear Mountain Orchards, filed for
Chapter 11 bankruptcy (Bankr. E.D. Wash. Case No. 11-04354) on
Sept. 1, 2011, before Judge Patricia C. Williams. Barry W.
Davidson, Esq. -- cnickerl@dbm-law.net -- at Davidson Backman
Medeiros PLLC, serves as the Debtor's counsel.
BELTWAY ONE: Cash Collateral Hearing Continued Until Sept. 15
-------------------------------------------------------------
The U.S. Bankruptcy Court for the District of Nevada has continued
until Sept. 15, 2011, at 1:30 p.m., the hearing to consider
Beltway One Development Group LLC's request to access Wells Fargo
Bank N.A.'s cash collateral.
The Court will also consider debtor-affiliate Ten Saints LLC's
request to access cash collateral on the same date and time.
As reported in the Troubled Company Reporter on July 28, 2011,
prepetition, Beltway One entered into two separate loan
transactions:
(i) Beltway One entered into a loan transaction with Colonial
Bank, N.A., effective Sept. 20, 2006, whereby Colonial lent
Beltway One the principal sum of $13.257 million, which was
secured by one parcel of the Debtor's real property called
Building 8, and all rents, income, revenues, issues and profits
arising or issuing from Beltway One's leases or other occupancy
agreements affecting the real property; and
(ii) Beltway One entered into a loan transaction with Wachovia
Bank, N.A., effective May 16, 2008, whereby Wachovia lent the
principal sum of $10 million to Beltway One, which loan was
secured by one parcel of Beltway One's real property called as
Building 11, and all rents, income, revenues, issues, and profits
arising or issuing from Beltway One's leases or other occupancy
agreements affecting such other real property.
In August 2009, BB&T Corp. purchased the assets of Colonial.
According to papers filed in Court by Beltway One, on March 20,
2010, the Colonial/BBT Loan Maturity Date, the outstanding
obligation was $3.235 million. Both prior to and after the
Colonial/BBT Maturity Date, Beltway One repeatedly contacted BBT
seeking to discuss the Colonial/BBT Loan, which calls and
correspondence, to date, have been unanswered. Receiving no
response from BBT after repeated efforts to contact
BBT, Beltway One ceased tendering payments post-maturity; however,
BBT retains an Colonial/BBT interest reserve account.
Beltway One believes that the value of Building 8 -- the
Colonial/BBT Collateral -- exceeds the Colonial/BBT Secured Debt
as of Petition Date.
In October 2008, Wells Fargo became the successor-by-merger to
Wachovia.
Beltway One also said that on May 16, 2011, the Wachovia/Wells
Loan Maturity Date, the outstanding obligation was $9.789 million.
Beltway One believes that the value of Building 11 -- the
Wachovia/Wells Collateral -- exceeds the Wachovia/Wells Secured
Debt as of the Petition Date.
In its objection to the Cash Collateral Motion, Wells Fargo said
it has no desire to shut down Beltway One's business operations.
It filed the Objection to notify the Court of, and to preserve its
rights regarding, disputes with several of the allegations made by
Beltway One. Wells Fargo said Beltway One concedes that all of
its postpetition revenues constitute Wells Fargo's cash
collateral. However, Beltway One has incorrectly characterized
its prepetition cash and deposit accounts as assets free and clear
of Wells Fargo's liens, a position that is simply not consistent
with controlling law. Beltway One also fails to offer sufficient
adequate protection against the diminution in value of Wells
Fargo's collateral. Wells Fargo further objects to Beltway One's
assertion that certain non-debtor insiders had reduced their
maximum liability under the guaranties of Beltway One's
indebtedness to Wells Fargo.
About Horizon Village Square et al.
Four related Las Vegas, Nevada-based entities sought Chapter 11
bankruptcy protection on July 13, 2011. The businesses are owned
or managed by local business people and firms, including Todd
Nigro, Nigro Development LLC, a Nigro family trust and other
investors.
Horizon Village Square LLC (Bankr. D. Nev. Case No. 11-21034) owns
the Vons-anchored Horizon Village Square Shopping Center near I-
515 and Horizon Drive in Henderson. The property includes five
retail buildings with nearly 43,000 square feet of space.
Ten Saints LLC (Bankr. D. Nev. Case No. 11-21028) owns the 134-
room Hampton Inn & Suites at St. Rose Parkway and Seven Hills
Drive in Henderson.
Beltway One Development Group LLC (Bankr. D. Nev. Case No. 11-
21026) owns the Desert Canyon Business Park at Russell Road and
the Las Vegas Beltway. It has two buildings and 15 acres.
Nigro HQ LLC (Bankr. D. Nev. Case No. 11-21014) owns an office
building at 9115 W. Russell Road occupied by Bank of George,
Infinity Plus LLC and Nigro Construction Inc.
Todd Nigro said the four bankruptcies were caused by threatened
foreclosures -- typically related to Wells Fargo Bank demanding
payments to keep loan-to-value ratios at specified levels.
Judge Mike K. Nakagawa presides over the cases. Lawyers at Gordon
Silver serve as the Debtors' bankruptcy counsel. The bankruptcy
petitions estimated assets and debts from $1 million to $10
million each for Nigro HQ; and from $10 million to $50 million in
both assets and debts for Horizon Village, Ten Saints and Beltway
One.
A fifth-related business, Russell Boulder LLC, filed for
bankruptcy (Bankr. D. Nev. Case No. 10-29724) on Oct. 19, 2010.
It owns the 600-suite Siena Suites extended stay property at
Boulder Highway and Russell Road.
BERNARD L. MADOFF: Judge Nixes Investors Bid for Docs
-----------------------------------------------------
Ian Thoms at Bankruptcy Law360 reports that a federal judge on
Thursday refused to force HSBC Holdings PLC, JPMorgan Chase & Co.
and a host of other defendants to turn over documents requested in
a multibillion-dollar suit brought by a putative class of
investors in foreign funds that fed Bernard L. Madoff's doomed
Ponzi scheme.
One day after another judge rejected a $62.5 million proposed
settlement between HSBC and the investors, U.S. Magistrate Judge
Henry Pitman dealt another blow to the plaintiffs, nixing their
broad discovery request, according to Law360.
About Bernard L. Madoff
Bernard L. Madoff Investment Securities LLC and Bernard L. Madoff
orchestrated the largest Ponzi scheme in history, with losses
topping US$50 billion. On 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 July 15, 2011, a total of US$6.88 billion in claims by
investors has been allowed, with US$794.9 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.
BLACKBOARD INC: S&P Lowers Corporate Credit Rating to 'B'
---------------------------------------------------------
Standard & Poor's Ratings Services lowered its corporate credit
rating on Blackboard Inc. to 'B' from 'B+' and removed it from
CreditWatch where it was placed with developing implications
on April 25, 2011, after it had announced it was exploring
strategic alternatives (please see the previous research reports
for details on this rating action as well as the subsequent
downgrade).
"We are also assigning a preliminary 'B+' bank loan rating to
Blackboard's $780 million first-lien term loan and $100 million
revolver with a preliminary recovery rating of '2', which
indicates substantial (70% to 90%) recovery in the event of a
payment default. We are assigning a preliminary 'CCC+' bank
loan rating to the $350 million second-lien loan with a
preliminary recovery rating of '6' which indicates negligible (0%
to 10%) recovery in the event of a payment default," S&P stated.
The rating reflects Standard & Poor's view of Blackboard's
financial risk profile as highly leveraged, following its
leveraged buyout (LBO) with initial pro forma adjusted debt
leverage of about 8x.
"We believe the company's adjusted debt leverage ratio more than
offsets the company's fair business risk profile," said Standard &
Poor's credit analyst Jacob Schlanger. "We expect it to decline
somewhat over the coming year, given our expectation for continued
revenue and EBITDA growth," he added.
The company has a leading position in the educational technology
market, with its products allowing users to deliver web-based
teaching, course and content management, community collaboration,
rapid communication, and on- and off-campus e-commerce
facilitation. The company derives more than half of revenues from
the higher education market, and the proposed combination with
Edline will enable it to solidify its position and cross sell its
products in the K-12 market as well.
BRIDGEVIEW AEROSOL: Settles With Wells Fargo on Claims, Cash Use
--------------------------------------- ------------------------
The U.S. Bankruptcy Court for the Northern District of Illinois
approved a settlement among Bridgeview Aerosol, LLC, et al., the
Official Committee of Unsecured Creditors, and Wells Fargo Bank,
N.A.
The settlement was entered in relation to the Debtors' claim
against the Bank; the Bank's claim against the Debtors and their
estates; and the Debtors' continued use of the Bank's cash
collateral to pay postpetition administrative expense claims.
The Debtors related that the Bank had agreed on the use of the
Bank's cash collateral through Feb. 17, 2011. However, as of that
date, due to the substantial loss that the Bank realized it would
incur on its claim against the Debtors, the Bank objected to the
further use of its cash collateral despite the fact that the
Debtors had incurred but had not paid significant postpetition
administrative expenses that were not fully provided for under the
prior agreed cash collateral budgets.
The essential elements of the parties' settlement are:
a) The Bank will provide the Debtors with (i) $250,000 from its
cash collateral account, plus (ii) 25% of the "net preference
proceeds," as a fund to pay Allowed Administrative Expense
Claims on a pro rata basis; provided, however, the first
$175,000 of net preference proceeds will be paid to the Bank
without first deducting the estate's 25% share of such
proceeds.
b) The Bank will provide the Debtors with $25,000 from its cash
collateral account to pay (i) the Debtors' attorneys fees
relating to the filing and prosecution of the abandonment
motion with respect to the Black Flag inventory, (ii) statutory
fees due to the U.S. Trustee for the first quarter of 2011, and
(iii) the cost of preparing W-2 forms for employees by the
Debtors' payroll service.
c) The Bank will pay to special counsel approved by the
Bankruptcy Court in connection with investigating and/or
pursuing the Insider Claims ("special counsel") the sum of
$25,000 to be used by Special Counsel to investigate and
determine the desirability of bringing the insider claims and
any amount less than the $25,000 being used by special counsel
will be returned directly to the Bank. In the event any
insider claim is prosecuted, the net proceeds, after (a)
payment and/or reimbursement to special counsel of all fees and
out of pocket costs and expenses not paid for by the Bank
incurred by special counsel in investigating and/or pursuing
the insider claims; followed by (b) reimbursement to the Bank
of all funds advanced for expenses to investigate and prosecute
the insider claims (including the original $25,000 paid to
special counsel), will be divided between the Debtors' estates
and the Bank in the ratio of 1/3 to the Debtors' estates and
2/3 to the Bank.
d) All amounts in the Debtors' bank account in excess of the
$275,000 to be paid on account of items (a) and (b) above,
approximately $1,125,000, will be set off by the Bank and
applied to the Bank's prepetition claim.
e) The Bank's section 507(b) claim will be limited to the
amounts to be paid to the Bank pursuant to items (a), (b) and
(c) above, including the Bank's share of the net proceeds of
the preference and the Insider Claims.
f) The Debtors will release their section 506(c) claim against
the Bank and its collateral proceeds.
The Debtors and the Committee related that the settlement is in
the best interests of administrative expense claimants and other
creditors because:
a) the settlement ensures that at least a portion of the
Allowable Administrative Expense Claims will be paid, and there
will be a process by which payment in full of such claims is
possible, with funds left over to confirm a plan and satisfy
section 503(b)(9) and other claims.
b) the Committee will be able to complete its investigation of
the insider claims;5 and
c) the Parties will avoid litigation over the disputed section
506(c) and 507(b) claims.
The Court also ordered that the following claims, which include
all claims that were filed timely in accordance with the
administrative expense claim bar date, constitute allowable
administrative expense claims:
Expense Category Amount
---------------- ------
Vacation Pay $295,000
Professional Services $64,575
Holdback Amounts $68,095
Helsel-Jepperson (electrical
services) $978
Admiral Products Inc. $1,212
Premier Delivery, Inc. $1,623
--------
Total $431,484
About Bridgeview Aerosol
Bridgeview, Illinois-based Bridgeview Aerosol, LLC, provides
manufactures, packages and distributes household cleaning and
automotive aerosol products. Affiliate AeroNuevo owns the real
property on which BVA operates. USAerosols is the parent company
of BVA and AeroNuevo.
Bridgeview Aerosol and its affiliates filed for Chapter 11
protection (Bankr. N.D. Ill. Lead Case No. 09-41021) on Oct. 30,
2009. Steven B. Towbin, Esq., at Shaw Gussis et al., assists the
Debtors in their restructuring efforts. Bridgeview Aerosol
estimated $10 million to $50 million in assets and debts as of the
Petition Date.
Adam P. Silverman, Esq., and Henry B. Merens, Esq., at Adelman &
Gettleman, Ltd., represents the Official Committee of Unsecured
Creditors.
On November 19, 2009, William T. Neary, the U.S. Trustee for
Region 10, amended the appointment of the Official Committee of
Unsecured Creditors. The Committee now consist of (i) Ball
Aerosol & Speciality Container; (ii) Black Flag Brands LLC; (iii)
Pennock Company; (iv) Diversified CPC International; (v) Laser
Tool Inc.; (vi) Berry Plastics Corporation; and (vii) Batavia
Container, Inc.
BROOKLYN FEDERAL: Receives Deficiency Notice From NASDAQ
--------------------------------------------------------
Brooklyn Federal Bancorp, Inc. received a letter from the Listing
Qualifications Department of the NASDAQ Stock Market LLC notifying
the Company that it no longer meets the NASDAQ Capital Market's
continued listing requirements under NASDAQ Listing Rule
5550(a)(2). The Notification Letter states that the minimum bid
price of the Company's common stock has traded below $1.00 per
share for 30 consecutive business days and that the Company is
therefore not in compliance with the Bid Price Rule.
The Notification Letter has no effect at this time on the listing
of the Company's common stock on the NASDAQ Capital Market and the
Company's common stock will continue to trade on the NASDAQ
Capital Market under the symbol "BFSB."
The Notification Letter states that the Company will be afforded
180 calendar days, or until March 5, 2012, to regain compliance
with the Bid Price Rule. To regain compliance, the closing bid
price of the Company's common stock must meet or exceed $1.00 per
share for at least ten consecutive business days. If the Company
does not regain compliance by March 5, 2012, NASDAQ will provide
written notification to the Company that the Company's common
stock will be subject to delisting from the NASDAQ Capital Market.
The Company may, however, be eligible for an additional grace
period if certain conditions are met. The Company may also appeal
NASDAQ's delisting determination to a NASDAQ Hearings Panel.
The Company intends to actively monitor the bid price of its
common stock and will consider available options to resolve the
deficiency and regain compliance with the NASDAQ requirements.
However, the Company is also a party to a definitive merger
agreement, under which the Company is expected to merge with
Investors Bancorp, Inc. in the fourth quarter of 2011, which is
expected to result in the cancellation of all of the Company's
outstanding common stock, thereby rendering the Bid Price Rule
deficiency moot.
BURLINGTON COAT: Bank Debt Trades at 5% Off in Secondary Market
---------------------------------------------------------------
Participations in a syndicated loan under which Burlington Coat
Factory Warehouse Corp. is a borrower traded in the secondary
market at 95.10 cents-on-the-dollar during the week ended Friday,
Sept. 9, 2011, an increase of 1.54 percentage points from the
previous week according to data compiled by Loan Pricing Corp. and
reported in The Wall Street Journal. The Company pays 475 basis
points above LIBOR to borrow under the facility. The bank loan
matures on Feb. 18, 2017, and carries Moody's 'B3' rating and
Standard & Poor's 'B-' rating. The loan is one of the biggest
gainers and losers among 79 widely quoted syndicated loans with
five or more bids in secondary trading for the week ended Friday.
About Warehouse Corp.
Burlington Coat Factory Warehouse Corp. --
http://www.burlingtoncoatfactory.com/-- operates about 425 no-
frills retail stores offering off-price current, brand-name
clothing in about 45 states and Puerto Rico. Although it is one
of the nation's largest coat sellers, the stores also sells
children's apparel, bath items, furniture, gifts, jewelry, linens,
and shoes. Sister chains include a pair of higher-priced Cohoes
Fashions shops, about 15 MJM Designer Shoes stores, and a single
Super Baby Depot. Founded in 1972, Burlington is owned by
affiliates of buyout firm Bain Capital.
* * *
Burlington carries a 'B3' corporate family rating and SGL-3
speculative grade liquidity rating from Moody's. The rating
outlook is stable.
C&D TECHNOLOGIES: Incurs $1.1 Million Net Loss in July 31 Quarter
-----------------------------------------------------------------
C&D Technologies, Inc., filed with the U.S. Securities and
Exchange Commission its quarterly report on Form 10-Q, reporting a
net loss of $1.06 million on $94.59 million of net sales for the
three months ended July 31, 2011, compared with a net loss of
$50.82 million on $83.83 million of net sales for the same period
during the prior year.
The Company also reported a net loss of $1.46 million on
$182.91 million of net sales for the six months ended July 31,
2011, compared with a net loss of $56.33 million on
$168.53 million of net sales for the same period a year ago.
The Company's balance sheet at July 31, 2011, showed
$251.29 million in total assets, $156.23 million in total
liabilities, and $95.05 million in total equity.
Commenting on the quarter, Dr. Jeffrey A. Graves, president and
CEO said, "Our second quarter results were generally in line with
our expectations. As we had indicated when releasing our first
quarter results, we expected to see revenues in our second quarter
rebound as our core markets in Asia continue to expand and as we
headed into the quarter with a stronger backlog for our European
business. During the quarter we also made great strides on
driving down inventory levels, realizing an over $8 million
reduction as we continue to focus on improving our working capital
performance. These efforts however, resulted in a negative
absorption impact on our bottom line as we adjusted our workforce
levels in North America to compensate for continued softness in
our Americas Flooded UPS markets."
A full-text copy of the Form 10-Q is available for free at:
http://is.gd/yip8ff
About C&D Technologies
C&D Technologies, Inc., is a manufacturer, marketer and
distributor of electrical power storage systems for the standby
power storage market. The Company makes lead acid batteries and
standby power systems that integrate lead acid batteries with
other electronic components, which are used to provide backup or
standby power for electrical equipment in the event of power loss
from the primary power source.
The Company reported a net loss of $55.55 million on
$354.83 million of net sales for the fiscal year ended Jan. 31,
2011, compared with a net loss of $25.78 million on
$335.71 million of net sales during the prior fiscal year.
C&D Technologies in December 2010 escaped a bankruptcy filing
after completing an out-of-court restructuring that reduced the
Company's total debt from approximately $175 million to
$50 million. The Company in September had entered into a
restructuring support agreement with noteholders to a
restructuring that will be effected through (i) an offer to
exchange the Company's outstanding notes for up to 95% of the
Company's common stock, or (ii) a prepackaged plan of
reorganization under Chapter 11 of the U.S. Bankruptcy Code, if
the exchange offer fails to get the requisite support. C&D
Technologies elected not to make a semi-annual interest
payment due on its 5.25% Convertible Senior Notes due 2025 on
Nov. 1, 2010.
CALUMET SPECIALTY: Moody's Affirms 'B2' Corporate Family Rating
---------------------------------------------------------------
Moody's Investors Service assigned a B3 rating to Calumet
Specialty Products Partners, L.P.'s (Calumet) proposed $200
million senior unsecured note offering maturing 2019. Moody's
changed Calumet's rating outlook to stable from positive. Moody's
also affirmed Calumet's B2 Corporate Family Rating (CFR), existing
B3 senior unsecured note rating and SGL-3 Speculative Grade
Liquidity Rating. The proposed offering will be used for partial
funding of Calumet's $475 million acquisition of Murphy Oil
Corporation's (Baa3 stable) Superior refinery assets and
inventory. Calumet is simultaneously offering approximately $200
million of common units in order to fund the Superior acquisition.
RATINGS RATIONALE
The move to stable from positive reflects the integration risk
associated with Calumet's acquisition of the Superior refinery
which is its largest acquisition to date, and the increased risk
profile from higher exposure to the volatile transportation fuels
business. The stable outlook assumes that the demand for specialty
products will remain strong while the Superior refinery will
benefit from access to cheap crude sources through 2012, resulting
in increased EBITDA. Calumet is expected to maintain leverage
comfortably under 4.0x while managing its working capital and
maintaining distributions at levels supported by internal
cashflow.
The B2 CFR reflects Calumet's niche position within the specialty
products industry and the degree of cashflow durability this
business provides relative to the traditional transportation fuels
business. As a leading independent niche producer of specialty
lubricants, solvents, and waxes, Calumet is capable of producing a
wide variety of specialty products that meets varying customer's
needs. Additionally, the specialty business lends itself to more
durable margins over time as the company has pushed through price
increases to keep pace with rising feedstock costs, though with a
four to six week lag. The rating also benefits from Calumet's
increased scale and geographic diversification following the
acquisition of the Superior medium complexity conventional
refinery and associated product terminals. The Superior refinery
offers significant geographic benefits, with access to both Bakken
and Canadian crudes. These onshore North American crudes are
currently trading at significant discounts compared to the water-
borne crudes, such as Brent. Moody's expects these differentials
will continue to remain supportive for inland refiners into 2012
resulting in better than expected refining margins for the
Superior refinery.
The rating is restrained by Calumet's corporate structure as a
master limited partnership (MLP) where Calumet must make sizeable
distributions to its unit holders. MLPs depend on reliable
earnings, since they must pay regular distributions to unit
holders. The rating is further constrained by Calumet's expansion
of its transportation fuels business, an inherently volatile
segment. The company is expected to modify some units in the
Superior refinery to assist its specialty product business but the
main units are expected to remain dedicated to the traditional
transportation fuels processing business.
Like other MLPs, Calumet relies on an acquisition-driven growth
strategy in order to pay out ever-higher distributions. The
Superior refinery acquisition does satisfy Calumet's growth
objectives in the near term, but increases the company's risk
profile by exposing it to a more volatile cashflow stream in the
longer term.
Calumet's ratings could be upgraded if management can successfully
integrate Superior within its specialty products operation and if
the company's expanded transportation fuels business proves to
post durable profitability in a lower refining margin environment,
while maintaining a sustainable leverage profile (debt/EBITDA
under 2.5x). A rating downgrade is a possibility should refining
margins negatively affect cash available to cover operating
expenses and debt service, there are protracted refinery outages
or supply disruptions, or Calumet adopts a more aggressive
distribution policy.
The SGL-3 rating reflects the expectation that Calumet will have
sufficient liquidity through Q3', 2012 to meet its minimal capital
spending requirements, interest expense, working capital needs,
and MLP common unit distributions.
The B3 senior unsecured notes rating reflects both the overall
probability of default of Calumet, to which Moody's assigns a PDR
of B2, and a loss given default of LGD4 - 54%. The proposed senior
notes are unsecured and guaranteed by all subsidiaries on a senior
unsecured basis. The $850 million committed asset backed revolving
credit facility is expected to have an initial borrowing base of
approximately $575 million. The size of the credit facility's
potential priority claim in comparison to the senior notes results
in the notes being rated one notch beneath Calumet's B2 CFR, in
accordance with Moody's Loss Given Default Methodology.
The principal methodology used in this rating was Moody's Global
Independent Refining and Marketing rating methodology published in
December 2009. Please see the Credit Policy page on www.moodys.com
for a copy of this methodology.
Calumet Specialty Products Partners, L.P. is headquartered in
Indianapolis, Indiana.
CALUMET SPECIALTY: S&P Rates $200-Mil. Sr. Unsecured Notes at 'B'
-----------------------------------------------------------------
Standard & Poor's Ratings Services assigned its 'B' senior
unsecured debt rating on Calumet Specialty Products Partners,
L.P.'s proposed $200 million senior unsecured notes due 2019. The
recovery rating on the notes is '4', indicating our expectation
for average recovery (30% to 50%) in the event of a payment
default. "At the same time, we revised the recovery rating on the
company's existing senior unsecured notes to '4', indicating our
expectation for average recovery (30% to 50%) in the event of a
payment default, from '3'. Calumet has also launched a concurrent
offering of 11 million common units," S&P stated.
Proceeds from the unsecured note and common unit offerings will be
used to help fund the approximately $475 million acquisition of
Murphy Oil Corp.'s Superior, Wis. refinery. Pro forma for the
Superior acquisition, Calumet will have up to 135,000 barrels per
day of processing capacity, dependent on feedstock and utilization
levels. Adjusted debt leverage should range between 3.5x to 3.0x
in 2012, and liquidity should remain adequate pro forma for the
transactions.
Ratings List
Calumet Specialty Products Partners L.P.
Corporate credit rating B/Stable/--
New Rating
$200 mil sr unsecrd nts due 2019 B
Recovery Rating 4
Recovery Rating Revised
To From
Senior unsecured debt B B
Recovery rating 4 3
CARGO TRANSPORTATION: Committee Has Opposition to Plan
------------------------------------------------------
The Hon. Michael G. Williamson of the U.S. Bankruptcy Court for
the Middle District of Florida will convene a hearing on Sept. 14,
2011, at 1:30 p.m., to consider the confirmation of Cargo
Transportation Services Inc.'s Amended Plan of Reorganization
dated Aug. 12, 2011.
Any objections to the Plan were due five days prior to the date of
the hearing. Written ballots accepting or rejecting the Plan are
due eight days before the date of the confirmation hearing.
According to the amended Disclosure Statement, holders of other
claims and interests are classified in the Plan as:
Class Description Status
----- ----------- ------
Class 1 Unsecured Priority Claims Unimpaired
Class 2 Secured Claim of Comerica Bank Impaired
Class 3(A) Equipment Financing Claim of Ally Unimpaired
Class 3(B) Equipment Financing Claim of BMW Unimpaired
Class 3(C) Equipment Financing Claim of
Credential Impaired
Class 3(D) Equipment Financing Claim of GECC Impaired
Class 3(E) Equipment Financing Claim of Key Impaired
Class 3(F) Equipment Financing Claim of Mercedes
(as to tractors only) Impaired
Class 3(G) Equipment Financing Claim of USB Impaired
Class 3(H) Equipment Financing Claim of Toyota Impaired
Class 3(I) Equipment Financing Claim of WFFL Impaired
Class 3(J) Equipment Financing Claim of Wells Impaired
Class 3(K) Secured Claim of FIFC Unimpaired
Class 3(L) Secured Claim of CoActive Impaired
Class 3(M) Secured Claim of TIP Impaired
Class 4 Administrative Convenience Claims Impaired
Class 5 Performing CV/IC Claims Impaired
Class 6 Non-Performing CV/IC Claims Impaired
Class 7 General Unsecured Claims Impaired
Class 8 Intercompany Claims Impaired
Class 9 Equity Interests Impaired
Under the Plan, the Debtor intends to treat claims as, among other
things:
Holders of Comerica Secured Claim will receive the following:
i) the Comerica Base Receivable Proceeds within 60 days
of the Effective Date;
ii) a cash payment from the Reorganized Debtor in the
amount of $125,000 within 30 days of the Effective Date in
satisfaction of Comerica's Lien on the Effective Date cash
assets;
iii) a cash payment from the Reorganized Debtor in the
amount of $100,000, less any amounts paid to Secured
Creditors holding senior Liens on the Effective Date Fixed
Assets, in full satisfaction of Comerica's Lien on the
Effective Date Fixed Assets;
iv) all of the Debtor's right in other loans and advances as
identified as a line item on the Debtor's Balance Sheet as
attached to the Disclosure Statement; and
v) any of the Debtor's rights in other miscellaneous loans
and advances or other assets not otherwise specifically
defined in this Plan;
(vi) 40% of the Excess Effective Date Proceeds.
Holders of General Unsecured Claims (estimated at $2,000,000) will
be satisfied through the Pro Rata Distribution of the Plan Trust
Assets on Distribution Dates that will occur (i) within 120
days of the Effective Date and (ii) on the First and Second
Anniversary Dates. On the Effective Date, each holder of an
Allowed Class 7 Unsecured Claim will become a beneficiary
of the Plan Trust.
All Intercompany Claims will be canceled as of the Effective Date
and the Holders of the claims will waive any right to distribution
on account of the claims.
All existing Equity Interests held in the Debtor will be
canceled and terminated as of the Effective Date.
The Plan provides that cash payments made pursuant to the Plan
will be in U.S. funds, by the means agreed to by the payor and the
payee, including by check, and/or wire transfer or, in the absence
of an agreement, such commercially reasonable manner as the payor
will determine in its sole discretion. For purposes of
effectuating Distributions under the Plan, any claim denominated
in foreign currency will be converted to U.S. Dollars pursuant to
the applicable published exchange rate in effect on the Petition
Date.
A full-text copy of the Disclosure Statement is available for free
at http://bankrupt.com/misc/CARGOTRANSPORTATION_ds_amendment.pdf
The Committee Objects
The Official Committee of Unsecured Creditors in the Debtor's case
asked that the Court deny the confirmation of the Debtor's Plan,
amended as of Aug. 12, explaining that the Plan does not contain
adequate information such that a creditor can make an informed
decision as to whether to vote for or against the Plan.
Furthermore, the Committee stated that the Plan in its present
state is not confirmable.
The Committee related that the proposed Plan involves a pre-
arranged sale of the going concern Reorganized Debtor free and
clear of the Debtor's liabilities to the exit funder in exchange
for which the exit funder agreed to provide working capital to the
Reorganized Debtor in the amount of $2,000,000 (less 40% of any
excess Effective Date proceeds which will be paid to the exit
funder). The exit funder will also purchase $955,988 shareholder
not for a mere $25,000.
Previously, the Committee requested that it be authorized to
conduct an expedited discovery in connection with the contested
matter associated with its objection to Disclosure Statement and
the confirmation of the Amended Plan of Reorganization.
The Committee is represented by:
Michael P. Brundage, Esq.
HILL, WARD & HENDERSON
P.O. Box 2231
Tampa, FL 33601
Tel: (813) 221-3900
Fax: (813) 221-2900
E-mail: mbrundage@hwhlaw.com
About Cargo Transportation
Sunrise, Florida-based Cargo Transportation Services, Inc.,
provides transportation services to clients nationwide, including
customized consolidation, distribution, logistics and warehousing
services. It has 140 employees and averages $100,000,000 in gross
revenue per year.
Cargo Transportation filed for Chapter 11 bankruptcy protection
(Bankr. M.D. Fla. Case No. 11-00432) on Jan. 12, 2011. Edward J.
Peterson, III, Esq., at Stichter, Riedel, Blain & Prosser, PA,
serves as the Debtor's bankruptcy counsel. Jennis & Bowen, P.L.,
serves as substitute counsel. 1 Source Partners Inc. and Accell
Audit & Compliance P.A., serve as the Debtor's certified public
accountants.
Donald F. Walton, U.S. Trustee for Region 21, appointed an
Official Committee of the Official Committee of Unsecured
Creditors in the Debtor's case. Hunton & Williams LLP represents
the Committee in the Chapter 11 proceedings. DLA Piper is general
counsel for the Committee.
The Debtor disclosed $11,728,760 in assets, and $11,869,375 in
liabilities as of the Chapter 11 filing.
CEBRIDGE CONNECTIONS: Debt Trades at 4% Off in Secondary Market
---------------------------------------------------------------
Participations in a syndicated loan under which Cebridge
Connections, also known as Classic Communications, Inc., is a
borrower traded in the secondary market at 96.25 cents-on-the-
dollar during the week ended Friday, Sept. 9, 2011, an increase of
0.45 percentage points from the previous week according to data
compiled by Loan Pricing Corp. and reported in The Wall Street
Journal. The Company pays 200 basis points above LIBOR to borrow
under the facility. The bank loan matures on Nov. 5, 2013, and
carries Moody's Ba2 rating and Standard & Poor's BB- rating. The
loan is one of the biggest gainers and losers among 79 widely
quoted syndicated loans with five or more bids in secondary
trading for the week ended Friday.
Cebridge Connections, also known as Classic Communications, Inc.,
is a cable operator focused on non-metropolitan markets in the
United States. The Company filed for chapter 11 protection
(Bankr. Del. Case No. 01-11257) on Nov. 13, 2001. Brendan Linehan
Shannon, Esq., at Young, Conaway, Stargatt & Taylor, represented
the Debtors in their restructuring efforts. When the Company
filed for protection from its creditors, it listed $711,346,000 in
total assets and $641,869,000 in total debts.
The Plan became effective on January 16, 2003. Under the terms of
the Plan, general unsecured claimants were paid 25% of their
allowed claims, and bondholders were provided a pro rata share of
subscription rights plus a pro rata share of 1,000,000 shares of
New Common Stock of the Reorganized Debtors as well as cash
payments. On Oct. 10, 2004, the Honorable Peter J. Walsh of the
U.S. Bankruptcy Court for the District of Delaware formally closed
the chapter 11 proceedings of Classic Communications, Inc., and
its affiliates.
COMMERCE CENTRE: Case Summary & 4 Largest Unsecured Creditors
-------------------------------------------------------------
Debtor: Commerce Centre, LLC
15304 Highway 73
Prairieville, LA 70769
Bankruptcy Case No.: 11-11372
Chapter 11 Petition Date: August 30, 2011
Court: United States Bankruptcy Court
Middle District of Louisiana (Baton Rouge)
Debtor's Counsel: Barry W. Miller, Esq.
HELLER, DRAPER, HAYDEN, PATRICK & HORN
P.O. Box 86279
Baton Rouge, LA 70879-6279
Tel: (225) 767-1499
Fax: (225) 761-0760
E-mail: bmiller@hellerdraper.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 four largest unsecured creditors filed
together with the petition is available for free at
http://bankrupt.com/misc/lamb11-11372.pdf
The petition was signed by George M. Bonfanti, manager.
COMSTOCK MINING: Has 2nd Phase Drill Results on Dayton Area
-----------------------------------------------------------
Comstock Mining Inc. announced the second-phase drilling results
at its Dayton Resource Area. The drilling program included 20
Reverse Circulation holes, totaling 8,170 feet and two core holes
totaling 1,106 feet. Significant mineralization was encountered
in all 22 holes, including continuously mineralized intervals of
greater than 100 feet in eight of those holes.
Phase I results were announced in March 2011. That initial phase
was designed as a series of three east-west "drill fences," spaced
approximately 600 feet apart, with the goal of testing the
mineralization at greater depths than the previous, mostly shallow
drilling, and of validating the geological model for the area.
Phase I encountered significant mineralization in 41 of the 42
holes in the program. Results announced previously by the Company
included the highest-grade interval encountered to-date at the
Dayton: 10 feet (3.05 m) grading 1.121 ounces per ton of gold
(38.39 g/tonne) and 2.279 ounces per ton of silver (78.05
g/tonne), contained in an interval of 135 feet (41.15 m) grading
0.218 ounces per ton of gold (7.47 g/tonne) and 0.685 ounces per
ton of silver (23.46 g/tonne). Those results also included
continuously mineralized intervals of greater than 100 feet in 13
of the 42 holes.
The Dayton Phase II drilling program follows the success of the
first phase by drilling holes on intermediate sections that were
spaced approximately 200 feet apart. The positive results provide
additional confirmation of the geological model and expand
significantly the Company's understanding of the mineralized zone.
"We are excited by the extended continuity of the mineralization
with 21 different holes showing greater than 100 feet," stated Mr.
Corrado De Gasperis, President and CEO of Comstock Mining Inc.
"We are incorporating these results into our next technical report
and expect a material increase in our Dayton mineral resources.
It is our strong belief that the Dayton has sufficient
mineralization, metallurgical character and economic profile for
development as our second mine, independent and distinct from our
activities in the Lucerne Area."
About Comstock Mining
Virginia City, Nev.-based Comstock Mining Inc. is a Nevada-based,
gold and silver mining company with extensive, contiguous property
in the historic Comstock district. The Company began acquiring
properties in the Comstock in 2003. Since then, the Company has
consolidated a substantial portion of the Comstock district,
secured permits, built an infrastructure and brought the
exploration project into test mining production. The Company
continues acquiring additional properties in the Comstock
district, expanding its footprint and creating opportunities for
exploration and mining. The goal of the Company's strategic plan
is to deliver stockholder value by validating qualified resources
(measured and indicated) and reserves (probable and proven) of
3,250,000 gold equivalent ounces by 2013, and commencing
commercial mining and processing operations by 2011, with annual
production rates of 20,000 gold equivalent ounces.
The Company reported a net loss of $60.32 million for the year
ended Dec. 31, 2010, compared with a net loss of $6.06 million
during the prior year. The Company had no revenues from
operations for the years ended Dec. 31, 2010 and 2009.
The Company's balance sheet at June 30, 2011, showed
$29.85 million in total assets, $11.33 million in total
liabilities, and $18.51 million in total stockholders' equity.
CORTEX PHARMA: Posts $356,100 Net Loss in 2nd Quarter
-----------------------------------------------------
Cortex Pharmaceuticals, Inc., filed its quarterly report on Form
10-Q, reporting a net loss of $356,168 on $1.09 million of revenue
for the three months ended June 30, 2011, compared with a net loss
of $2.45 million on $0 revenue for the same period last year.
The Company reported a net loss of $1.91 million on $1.11 million
of revenues for the six months ended June 30, 2011, compared with
net income of $3.14 million on $9.00 million of revenues for the
same period of 2010.
The Company's balance sheet at June 30, 2011, showed $1.77 million
in total assets, $1.24 million in total liabilities, and
stockholders' equity of $533,906.
As reported in the TCR on March 24, 2011, Haskell & White LLP, in
Irvine, California, expressed substantial doubt about Cortex
Pharmaceuticals' ability to continue as a going concern, following
the Company's 2010 results. The independent auditors noted that
the Company does not currently possess sufficient working capital
to fund its operations through the next fiscal year.
A copy of the Form 10-Q is available at http://is.gd/wNRZhX
Irvine, Calif.-based Cortex Pharmaceuticals, Inc. (OTC BB:
CORX.OB) -- http://www.cortexpharm.com/-- is a neuroscience
company focused on novel drug therapies for treating psychiatric
disorders, neurological diseases and sleep apnea. Cortex is
pioneering a class of proprietary pharmaceuticals called
AMPAKINE(R) compounds, which act to increase the strength of
signals at connections between brain cells. The loss of these
connections is thought to be responsible for memory and behavior
problems in Alzheimer's disease.
DECISION INSIGHT: S&P Affirms 'B' Long-Term Corp. Credit Rating
---------------------------------------------------------------
Standard & Poor's Ratings Services revised its outlook on Decision
Insight Information Group (U.S.) I Inc. (DIIG) to negative from
stable. At the same time, Standard & Poor's affirmed its 'B' long-
term corporate credit rating on the company and its 'B+' issue-
level rating on DIIG's $400 million senior secured facilities. The
'2' recovery rating on the facilities is unchanged.
In early 2011, certain operating companies finalized legal name
changes to rebrand under the Decision Insight Information Group
name. Accordingly, the name of the borrower under the credit
agreement was legally changed to Decision Insight Information
Group (U.S.) I Inc. from Property Data (U.S.) I Inc.
"The outlook revision reflects lower volumes at DIIG's
transaction-driven North American and U.K. financial services
businesses and increased competitive pressures in the claims side
of the key U.S. Property Insurance segment, which have caused
first-half operating results to be below our expectations," said
Standard & Poor's credit analyst Madhav Hari.
Specifically, normalized revenue and EBITDA for the six months
ended June 30, 2011, have decreased 12% and about 10% from the
previous year period. "Given difficult market conditions, we are
concerned that DIIG's EBITDA growth could be pressured in the near
term, which could lead to sustained Standard & Poor's adjusted
leverage above our 7x target for the ratings and potentially
constrained liquidity as covenants step down through 2012," S&P
stated.
The ratings on U.S.-based property data information provider DIIG
reflect what Standard & Poor's views as the company's highly
leveraged financial risk profile characterized by run-rate
Standard & Poor's adjusted debt to EBITDA in excess of 7x, weak
cash flow protection measures, and an aggressive financial
policy given the company's leveraged capital structure and
financial sponsor ownership. The ratings also reflect Standard &
Poor's assessment of a weak business risk profile owing to the
company's relatively small scale, moderate diversity, and weak
revenue performance in the past two years and in recent quarters.
"The negative outlook reflects our concern that the weak operating
results experienced during the first half of the year could
persist in the second half. Increasing competitive pressures and
weak macroeconomic trends have diminished DIIG's ability to absorb
further operational missteps, competitive losses, or lower demand.
Moreover, we believe covenant headroom will tighten significantly
in 2012 if EBITDA generation does not improve in the near term.
We could downgrade DIIG if EBITDA fails to sequentially improve in
the next couple of quarters as this would heighten the possibility
of covenant breaches while causing Standard & Poor's adjusted
leverage to exceed 7x. Given difficult market conditions and
DIIG's potential time to deleverage, an upgrade is not likely,"
S&P stated.
DIGITAL REALTY: S&P Rates $250-Mil. Preferred Stock at 'BB+'
------------------------------------------------------------
Standard & Poor's Ratings Services assigned its 'BB+' issue rating
to Digital Realty Trust Inc.'s $250 million cumulative redeemable
preferred stock series E. The company plans to use the net
proceeds from the offering to temporarily repay borrowings under
its revolving credit facility, to acquire additional properties,
to fund development and redevelopment opportunities, and for
general corporate purposes, such as for the repurchase, redemption
or retirement of outstanding debt and/or preferred equity
securities. As of June 30, 2011, Digital's revolving credit
facility had a total outstanding balance of $341.4 million,
excluding committed letters of credit of $30.5 million, leaving
approximately $378.0 million available for use. Effective Aug. 31,
2011, the company exercised the second and final one-year
extension option, which extended its maturity date to Aug. 31,
2012, from Aug. 31, 2011.
"Our ratings on Digital Realty Trust Inc. and Digital Realty Trust
L.P. (collectively, Digital) acknowledge the company's
satisfactory business profile, given its good competitive position
as a multimarket datacenter provider, as well as a financial
profile that we currently consider intermediate based on moderate
leverage, strong debt coverage measures, and management's
willingness to date to issue equity to finance leverage-neutral
growth," S&P related.
"Our stable outlook reflects Digital Realty's well-occupied
portfolio, very manageable lease expirations, contractual rent
increases, and currently favorable mark-to-market rent profile.
Management's demonstrated leverage-neutral growth to date supports
our expectations that the company will maintain its current
leverage and coverage metrics. Given management's growth appetite,
we are unlikely to raise the ratings in the near term. However,
longer term, we would consider an upgrade if the company
profitably executes its geographic expansion, development, and
redevelopment pursuits while sustaining a high-2x fixed-charge
coverage amid a less-steep asset growth trajectory. We would lower
the rating if fixed-charge coverage falls materially below the
2.4x contemplated in our stress scenario and total coverage drops
below 1.1x, which we consider unlikely," S&P related.
Ratings List
Digital Realty Trust Inc.
Corporate credit rating BBB/Stable/--
Digital Realty Trust L.P.
Corporate credit rating BBB/Stable/--
Senior unsecured BBB
Rating Assigned
Digital Realty Trust Inc.
$250 million pfd stock series E BB+
DRYSHIPS INC: George Economou Discloses 14% Equity Stake
--------------------------------------------------------
In an amended Schedule 13D filing with the U.S. Securities and
Exchange Commission, George Economou and his affiliates disclosed
that as of Sept. 2, 2011, they beneficially own 58,985,487 shares
of common stock of DryShips Inc. representing 14% of the shares
outstanding. As previously reported by the TCR on April 21, 2011,
George Economou, et al., disclosed beneficial ownership of
58,003,832 shares of common stock of the Company representing
13.9% equity stake. A full-text copy of the new filing is
available for free at http://is.gd/mwZrgH
About DryShips Inc.
Based in Greece, DryShips Inc. -- http://www.dryships.com/--
-- owns and operates drybulk carriers and offshore oil
deep water drilling units that operate worldwide. As of Sept. 10,
2010, DryShips owns a fleet of 40 drybulk carriers (including
newbuildings), comprising 7 Capesize, 31 Panamax and 2 Supramax,
with a combined deadweight tonnage of over 3.6 million tons and
6 offshore oil deep water drilling units, comprising of 2 ultra
deep water semisubmersible drilling rigs and 4 ultra deep water
newbuilding drillships.
DryShips's common stock is listed on the NASDAQ Global Select
Market where it trades under the symbol "DRYS".
On Nov. 25, 2010, DryShips Inc. entered into a waiver letter
for its US$230.0 million credit facility dated Sept. 10, 2007,
as amended, extending the waiver of certain covenants through
Dec. 31, 2010.
In its audit report on the Company's financial statements for the
year ended Dec. 31, 2010, Deloitte, Hadjipavlou Sofianos &
Cambanis S.A., noted that the Company's inability to comply with
financial covenants under its original loan agreements as of Dec.
31, 2009, its negative working capital position and other matters
raise substantial doubt about its ability to continue as a going
concern.
The Company's balance sheet at June 30, 2011, showed US$7.86
billion in total assets, US$4.03 billion in total liabilities, and
US$3.83 billion in total equity.
EAGLE CROSSROADS: Seeks to Use Rents to Fund Chapter 11
-------------------------------------------------------
Eagle Crossroads Center, LLC, seeks authority to use cash
collateral, consisting of cash on hand, depository accounts and
rents, which secures its obligations to Bank of America, to pay
costs of administration and to operate the Debtor's business
during the pendency of the Chapter 11 case.
The Debtor entered into a $52 million loan transaction with Morgan
Stanley Mortgage Capital Holdings, LLC, in November 2007. The
loan was transferred to Bank of America, N.A., as Trustee for
Morgan Stanley Capital I Inc., Commercial Mortgage Pass-Through
Certificates, Series 2007-HQ13, in June 2009. The loan was
secured by, among other property, the Debtor's shopping center
property, as well as fixtures, rents, and various forms of
personal property.
The Debtor has not made its monthly payments due under the loan
since Dec. 5, 2010. Since then, however, the Debtor has attempted
to negotiate with BofA in an effort to be allowed to receive its
Rents so the Debtor can pay its operating expenses. The Debtor
has additionally attempted negotiations to restructure its debt
with BofA. However, such efforts have not been successful.
BofA has sought the appointment of a receiver for the property,
forcing the Debtor to seek bankruptcy protection.
The Debtor said BofA is not entitled to adequate protection
payments for the use of Collateral. The Debtor has ordered an
appraisal of the Property to establish its value, and the
appraisal should be available shortly. However, assuming that the
value of the Collateral is less than the Loan amount due to BofA,
and thus BofA is an undersecured creditor, the Debtor argued the
Collateral is not depreciating in value as evidenced by the fact
that as of the Petition Date, the Debtor's revenues exceeded its
operating expenses before debt service and are projected to do so
on a post-petition basis. Additionally, for the 12-month period
commencing on the Petition Date and concluding on Aug. 31, 2012,
the Debtor has proposed a budget that anticipates increasing the
Debtor's cash balance from approximately $210,000 to in excess of
$3,000,000 while being able to pay all operating expenses on a
current basis. The Debtor also has not paid its operating
expenses on a current basis since June 2011, despite its ability
to otherwise do so, because BofA has been depositing and holding
all of the Debtor's Rents in a lockbox account.
Without the authority to use Cash Collateral, the Debtor said it
be forced to cease operations, thereby eliminating its ability to
reorganize.
About Eagle Crossroads Center
Los Angeles, California-based Eagle Crossroads Center, LLC, owns
and operates a retail shopping center property located at 6464
Decatur Boulevard, in North Las Vegas, Nevada. The Property has
consistently maintained strong occupancy rates, and is currently
roughly 95% occupied.
Eagle Crossroads Center filed for Chapter 11 bankruptcy (Bankr. D.
Nev. Case No. 11-23749) on Aug. 30, 2011, before Judge Bruce T.
Beesley. Thomas H. Fell, Esq., at Gordon Silver, serves as the
Debtor's bankruptcy counsel. The Debtor estimated assets and
debts of $50 million to $100 million as of the Chapter 11 filing.
EAGLE CROSSROADS: Sec. 341 Creditors' Meeting Set for Oct. 6
------------------------------------------------------------
The United States Trustee for the District of Nevada in Las Vegas
will convene a Meeting of Creditors pursuant to Sec. 341 of the
Bankruptcy Code in the Chapter 11 case of Eagle Crossroads Center,
LLC, on Oct. 6, 2011, at 2:00 p.m. at 341s - Foley Bldg, Rm 1500.
The debtor's representative must be present at the meeting to be
questioned under oath by the trustee and by creditors. Creditors
are welcome to attend, but are not required to do so. The meeting
may be continued and concluded at a later date without further
notice. The court, after notice and a hearing, may order that the
United States trustee not convene the meeting if the debtor has
filed a plan for which the debtor solicited acceptances before
filing the case.
The last day to file proofs of claim in the case is Jan. 4, 2012.
About Eagle Crossroads Center
Los Angeles, California-based Eagle Crossroads Center, LLC, owns
and operates a retail shopping center property located at 6464
Decatur Boulevard, in North Las Vegas, Nevada. The Property has
consistently maintained strong occupancy rates, and is currently
roughly 95% occupied.
Eagle Crossroads Center filed for Chapter 11 bankruptcy (Bankr. D.
Nev. Case No. 11-23749) on Aug. 30, 2011, before Judge Bruce T.
Beesley. Thomas H. Fell, Esq., at Gordon Silver, serves as the
Debtor's bankruptcy counsel. The Debtor estimated assets and
debts of $50 million to $100 million as of the Chapter 11 filing.
EDGEN MURRAY: Extends Maturity of JPMorgan Facility to May 2014
---------------------------------------------------------------
Edgen Murray II, LP, and its subsidiaries, Edgen Murray
Corporation, Edgen Murray Europe Limited, Edgen Murray Canada
Inc., Edgen Murray Pte. Ltd. and the other Loan Parties party
thereto, entered into a sixth amendment to the Company's senior
secured revolving credit facility with JPMorgan Chase Bank, N.A.,
JPMorgan Chase Bank, N.A., Toronto Branch, J.P. Morgan Europe
Limited, The HongKong and Shanghai Banking Corporation Limited and
the Lenders party thereto to extend the maturity date of the ABL
Facility from May 11, 2012, to May 11, 2014, and to increase the
aggregate amount available under the ABL Facility from $175
million to $195 million (subject to an increase by the Company of
up to $25 million for a total of $220 million) of which:
* EMC may utilize up to $180 million ($25 million of which can
only be used for letters of credit) less any amounts utilized
under the sublimits of EM Canada and EM Europe;
* EM Europe may utilize up to $60 million;
* EM Canada may utilize up to $10 million; and
* EM Pte may utilize up to $10 million, which increases
automatically to $15 million upon the fulfillment by EM Pte
of certain conditions precedent.
The financial, affirmative and negative covenants of the ABL
Facility remain largely unchanged with the exception that, under
the amended ABL Facility, to avoid having to comply with the
minimum fixed charge coverage ratio of 1.25 to 1.00, the Company
must maintain aggregate borrowing availability of greater than or
equal to $27 million, and borrowing availability of EMC and EM
Canada of greater than or equal to $16.5 million. If borrowing
availability falls below these thresholds, the Company will be
required to comply with the fixed charge coverage ratio until the
date that both aggregate borrowing availability is greater than
$32 million and the borrowing availability of EMC and EM Canada is
greater than $21.5 million for a consecutive ninety day period,
and no default or event of default exists or has existed during
the period.
There is no material relationship between Edgen Murray II, L.P.,
or any of its affiliates and any of the parties to the Sixth
Amendment, other than in respect of the Sixth Amendment and the
ABL Facility. Certain of such parties or their affiliates have in
the past performed, and may in the future from time to time
perform, investment banking, financial advisory, lending or
commercial banking or trustee services for Edgen Murray II, L.P.
and its affiliates, for which they have received, and may in the
future receive, customary compensation and reimbursement of
expenses.
A full-text copy of the Sixth Amendment to Credit Agreement is
available for free at http://is.gd/1TYrh8
About Edgen Murray
Edgen Murray II L.P., headquartered in Baton Rouge, Louisiana, is
a distributor of carbon steel and alloy products for use primarily
in specialized applications in the energy and niche industrial
segments. The company operates on a global basis, with
approximately one-third of its sales generated outside of the
Americas, and has distribution centers in five countries to
facilitate timely deliveries to companies and contractors engaged
in the development of new energy infrastructure projects and the
maintenance of existing facilities. In 2010, Edgen Murray had
sales of $628 million. The company is primarily owned by
Jefferies Capital Partners, certain co-investors and members of
senior management.
The Company's balance sheet at June 30, 2011, showed
$500.92 million in total assets, $642.78 million in total
liabilities, and a $141.86 million total partners' deficit.
* * *
As reported by the TCR on April 11, 2011, Moody's Investors
Service lowered Edgen Murray II, L.P.'s probability of default
rating (PDR) to Caa2 from Caa1, its corporate family rating (CFR)
to Caa3 from Caa1 and the company's 12.25% senior secured notes to
Caa3 from Caa2. The downgrade was prompted by Edgen Murray's
continuing weak performance even as many of its peers began to
benefit in 2010 from higher oil prices, a higher rig count for oil
drilling, and increased drilling in and production from
alternative shale plays.
In September 2010, Standard & Poor's Ratings Services said that it
lowered its corporate credit rating on Edgen Murray II L.P. to 'B-
' from 'B'. The rating outlook is stable.
"The downgrade reflects S&P's expectation that 2010 EBITDA will
likely be around $30 million, materially lower than its previous
expectation of about $55 million, due to ongoing weakness in the
company's Western Hemisphere segment as a result of lower capital
spending on projects in the region," said Standard & Poor's credit
analyst Sherwin Brandford.
EGPI FIRECREEK: Inks Equity Purchase Agreement with Southridge
--------------------------------------------------------------
EGPI Firecreek, Inc., on Aug. 30, 2011, entered into an Equity
Purchase Agreement and a Registration Rights Agreement with
Southridge Partners II, LP.
Pursuant to the Equity Purchase Agreement, the Investor will
commit to purchase up to $55,000,000 of the Company's common stock
over the course of 36 months commencing the effective date of the
initial Registration Statement covering the Registrable Securities
pursuant to the Equity Purchase Agreement. The put option price
is 92% of the average of two lowest closing prices of any two
applicable trading days during the five trading day period
commencing the date a put notice is delivered to the Investor in a
manner provided by the Equity Purchase Agreement.
The "Registrable Securities" include the Put Shares, any Blackout
Shares and any securities issued or issuable with respect to any
of the foregoing by way of exchange, stock dividend or stock split
or in connection with a combination of shares, recapitalization,
merger, consolidation or other reorganization or otherwise.
Under the terms of the Registration Rights Agreement, the Company
is obligated to file a registration statement with the U.S.
Securities and Exchange Commission to cover the Registrable
Securities no later than 60 days after the execution of the Equity
Purchase Agreement. The amount of the Registrable Securities
required to be included in the initial Registration Statement
shall be no less than 100% of the maximum amount of common stock
permitted by the SEC to be included in a Registration Statement
pursuant to Rule 415 promulgated under the Securities Act of 1933,
as amended, and will file additional Registration Statement to
register additional Rule 415 Amounts until all the Registrable
Securities are registered.
In connection with the Equity Purchase Agreement, the Company paid
the Investor a preparation and performance fee of $20,000 in the
form of a promissory note bearing 8% interest to be paid in 6
months.
A full-text copy of the Equity Purchase Agreement is available for
free at http://is.gd/NCvLTT
About EGPI Firecreek
Scottsdale, Ariz.-based EGPI Firecreek, Inc. (OTC BB: EFIR) was
formerly known as Energy Producers, Inc., an oil and gas
production company focusing on the recovery and development of oil
and natural gas.
The Company has been focused on oil and gas activities for
development of interests held that were acquired in Texas and
Wyoming for the production of oil and natural gas through Dec. 2,
2008. Historically in its 2005 fiscal year, the Company initiated
a program to review domestic oil and gas prospects and targets.
As a result, EGPI acquired non-operating oil and gas interests in
a project titled Ten Mile Draw located in Sweetwater County,
Wyoming for the development and production of natural gas. In
July 2007, the Company acquired and began production of oil at the
2,000 plus acre Fant Ranch Unit in Knox County, Texas. This was
followed by the acquisition and commencement in March 2008 of oil
and gas production at the J.B. Tubb Leasehold Estate located in
the Amoco Crawar Field in Ward County, Texas.
The Company's balance sheet at June 30, 2011, showed $5.14 million
in total assets, $5.00 million in total liabilities, all current,
$3.73 million in Series D preferred stock, and a $3.59 million
total shareholders' deficit.
M&K CPAS, PLLC, in Houston, expressed substantial doubt about EGPI
Firecreek's ability to continue as a going concern, following the
Company's 2010 results. The independent auditors noted that the
Company has suffered recurring losses and negative cash flows from
operations.
EVERGREEN ENERGY: Libra Advisors Discloses 15.4% Equity Stake
-------------------------------------------------------------
In an amended Schedule 13G filing with the U.S. Securities and
Exchange Commission, Libra Advisors, LLC, and its affiliates
disclosed that as of Aug. 25, 2011, they beneficially own
4,670,725 shares of common stock of Evergreen Energy, Inc.,
representing 15.4% of the shares outstanding. As previously
reported by the TCR on Aug. 12, 2011, Libra Advisors, et al.,
disclosed beneficial ownership of 10.4% of the shares outstanding.
A full-text copy of the latest 13G filing is available for free at
http://is.gd/8vk6T4
About Evergreen Energy
Evergreen Energy Inc. has developed two, proprietary, patented,
and green technologies: the GreenCert(TM) suite of software and
services and K-Fuel(R). GreenCert, which is owned exclusively by
Evergreen, is a science-based, scalable family of environmental
intelligence solutions that quantify process efficiency and
greenhouse gas emissions from energy, industrial and agricultural
sources and may be used to create verifiable emission reduction
credits. K-Fuel technology significantly improves the performance
of low-rank coals, yielding higher efficiency and lowering
emissions.
The Company reported a net loss of $21.02 million on $403,000 of
total operating revenue for the year ended Dec. 31, 2010, compared
with a net loss of $58.53 million on $423,000 of total operating
revenue during the prior year.
Hein & Associates LLP, in Denver, Colo., expressed substantial
doubt about Evergreen Energy's ability to continue as a going
concern. The independent auditors noted that the Company has
suffered recurring losses from operations and has had recurring
cash used in operations.
The Company's balance sheet at June 30, 2011, showed
$24.54 million in total assets, $21.52 million in total
liabilities, $2,000 in preferred stock, and $3.02 million in total
stockholders' equity.
FAITH CHRISTIAN: Taps Judkins Simpson to Handle Marriage Action
---------------------------------------------------------------
Faith Christian Family Church of Panama City Beach, Inc., sought
and obtained permission from the U.S. Bankruptcy Court for the
Northern District of Florida for permission to employ James A.
Judkins of the law firm of Judkins, Simpson, High & Schulte, as
special counsel.
The firm was retained prior to the filing of the bankruptcy case
to represent the debtor-in-possession in a civil matter.
The firm will represent the Debtor in the dissolution of marriage
action between Markus Quin Bishop and Margie Negrin Bishop,
in the Circuit Court of Bay County, Florida.
To the best of the Debtor's knowledge, Mr. Judkins is a
"disinterested person" as that term is defined in Section 101(14)
of the Bankruptcy Code.
About Faith Christian Family Church
Based in Panama City Beach, Florida, Faith Christian Family Church
of Panama City Beach Inc., dba Faith Christian Family Church,
filed for Chapter 11 bankruptcy protection on May 24, 2011 (Bankr.
N.D. Fla. Case No. 11-50288). Charles M. Wynn Law Offices, P.A.,
represents the Debtor. The Debtor tapped James A. Judkins of the
law firm of Judkins, Simpson, High & Schulte, as special counsel,
and Marsha L. Lyons of the Law Offices of Lyons & Farrar, PA, as
counsel for BP claim. The Debtor has $11,339,469 in assets, and
$3,361,477 in debts.
The Debtor has filed a plan of reorganization that calls for the
sale of its parsonage to pay off its creditors.
FAITH CHRISTIAN: U.S. Trustee Unable to Form Committee
------------------------------------------------------
Until further notice, the United States Trustee will not appoint a
committee of creditors for Faith Christian Family Church of Panama
City Beach Inc., dba Faith Christian Family Church, pursuant to 11
U.S.C. Sec. 1102.
About Faith Christian
Based in Panama City Beach, Florida, Faith Christian Family Church
of Panama City Beach Inc., dba Faith Christian Family Church,
filed for Chapter 11 bankruptcy protection (Bankr. N.D. Fla. Case
No. 11-50288) on May 24, 2011. Charles M. Wynn Law Offices, P.A.,
represents the Debtor. The Debtor tapped James A. Judkins of the
law firm of Judkins, Simpson, High & Schulte, as special counsel,
and Marsha L. Lyons of the Law Offices of Lyons & Farrar, PA, as
counsel for BP claim. The Debtor has $11,339,469 in assets, and
$3,361,477 in debts.
The Debtor has filed a plan of reorganization that calls for the
sale of its parsonage to pay off its creditors.
FIRST NATIONAL: Can Use Capmark's Cash Collateral Until Sept. 30
----------------------------------------------------------------
The Hon. Niles Jackson of the U.S. Bankruptcy Court for the
Western District of Oklahoma approved a stipulation between
debtors First National Building II, LLC and First National
Building I, LLC, on one hand, and Capmark Bank and Capmark CDF
Subfund VI LLC, on the other, authorizing the Debtors to use the
cash collateral until Sept. 30, 2011.
The Debtors would use the rent revenue generated from the lease
space in the property to maintain the property and pay operating
expenses relating to the property.
The Debtors noted that pursuant to the petition for foreclosure,
the lender alleged that the loan had matured, asserted a claim
against the Debtors in an amount exceeding $20 million, and sought
to foreclose the property.
Previously, the lender filed a limited objection to Debtors'
motion for continued use of cash collateral. Capmark objected
that the Debtors intend to pay Milbank Real Estate Services, Inc.,
a management fee of 3% of all gross revenues collected from the
property monthly and to the extent the Debtors seek to increase
their budget variance to 10%.
Milbank acts as the Debtors' exclusive managing agent for the
property -- the real property commonly known as the First National
Center and located at 120 N. Robinson Avenue in Oklahoma City.
The lender stated that $14,616 figure in the budget is essentially
3% of all gross revenues collected from the property, a percentage
that is 1.5% higher than the fee Capmark agreed Milbank could pay
itself for its management services.
To resolve the concerns, the parties entered into a stipulation
which provides that, among other things:
-- The lender has consented to the use of the cash collateral
and to deviate from the line items contained in the budget by
not more than 5% on both line item and aggregated basis, with
an unused portion from a week to be carried over into the
following week.
-- The Debtors are further authorized to use the cash
collateral to pay all quarterly fees owing to the Office of the
U.S. Trustee and all expenses owing to the Clerk of the
Bankruptcy Court.
-- The Debtors are authorized to pay Milbank a management fee
equal to 3% of all gross revenues collected from the property
during the month, provided that the Debtor have provided the
lender with the information regarding certain prepetition
insider payments that was requested by counsel for the lender.
If the Debtors have not provided the lender with the requested
insider payment information by Sept. 1, the Debtors will pay
Milbank a management fee equal to a temporary reduced rate of
1.5% of all gross revenues collected from the property.
The Debtors added that given that the lender is an oversecured
creditor protected by a significant equity cushion (of
approximately 33%) and the Debtors' continued operation of the
property, the Debtors submit that the lender will remain
adequately protected despite the Debtors' use of cash collateral.
The lender can be reached at:
CAPMARK BANK AND CAPMARK CDF SUBFUND VI LLC
Attn: Keith E. Armstrong
1801 California Street, Suite 3900
Denver, CO 80202
Fax: (303) 291-5805
E-mail: Keith.Armstrong@capmarkbank.com
CAPMARK BANK AND CAPMARK CDF SUBFUND VI LLC
Attn: Michele Frank
485 Madison Avenue
New York, NY 10022
Fax: (212) 859-7434
E-mail: Michele.Frank@capmarkbank.com
Keith M. Aurzada, Esq.
John C. Leininger, Esq.
BRYAN CAVE LLP
2200 Ross Avenue, Suite 330
Dallas, TX 75201
Tel: (214) 721-8041
Fax: (214) 220-6716
Email: keith.aurzada@bryancave.com
john.leininger@bryancave.com
About First National
Sherman Oaks, California-based First National Building I, LLC, and
First National Building II, LLC, are the co-owners of the real
property commonly known as the First National Center and located
at 120 N. Robinson Avenue in Oklahoma City. The property is a 33-
story historic office building located in the central business
district in Oklahoma City and contains approximately 950,000
square feet of rentable space.
The Honorable Geraldine Mund entered an order directing the
transfer of the Chapter 11 cases of First National Building I,
LLC, and First National Building II, LLC, from the Central
District of California to the Western District of Oklahoma.
Capmark Bank and Capmark CDF Subfund VI LLC, (together, the
"Lender"), made the request, and Judge Mund agreed to the venue
change. Capmark is represented by H. Mark Mersel, Esq., at Bryan
Cave LLP in Irvine, Calif.
First National Building I, LLC, filed a Chapter 11 petition
(Bankr. C.D. Calif. Case No. 10-22745) in Woodland Hills, Calif.,
on Oct. 7, 2010, and the case was transferred (Bankr. W.D. Okla.
Case No. 10-16334) to Oklahoma City on Oct. 13, 2010. First
National Building II, LLC, filed a Chapter 11 petition (Bankr.
C.D. Calif. Case No. 10-22747) in Woodland Hills, Calif. on
Oct. 7, 2010, and the case was transferred (Bankr. W.D. Okla. Case
No. 10-16335) to Oklahoma City on Oct. 13, 2010.
The Debtors each estimates assets and debts at $10 million to
$50 million.
The Debtors are affiliated with Roosevelt Lofts, LLC (Bankr. C.D.
Calif. Case No. 09-14214).
The Debtors are represented by Mark B. Toffoli, Esq., at Andrews
Davis, P.C., in Oklahoma City, Okla.
FIRST NATIONAL: Closed; CharterBank Assumes All Deposits
--------------------------------------------------------
The First National Bank of Florida of Milton, Fla., was closed on
Friday, Sept. 9, 2011, by the Office of the Comptroller of the
Currency, which appointed the Federal Deposit Insurance
Corporation as receiver. To protect the depositors, the FDIC
entered into a purchase and assumption agreement with CharterBank
of West Point, Ga., to assume all of the deposits of The First
National Bank of Florida.
The eight branches of The First National Bank of Florida will
reopen during their normal business hours as branches of
CharterBank. Depositors of The First National Bank of Florida
will automatically become depositors of CharterBank. Deposits
will continue to be insured by the FDIC, so there is no need for
customers to change their banking relationship in order to retain
their deposit insurance coverage up to applicable limits.
Customers of The First National Bank of Florida should continue to
use their existing branch until they receive notice from
CharterBank that it has completed systems changes to allow other
CharterBank branches to process their accounts as well.
As of June 30, 2011, The First National Bank of Florida had around
$296.8 million in total assets and $280.1 million in total
deposits. In addition to assuming all of the deposits of the
failed bank, CharterBank agreed to purchase essentially all of the
assets.
The FDIC and CharterBank entered into a loss-share transaction on
$216.3 million of The First National Bank of Florida's assets.
CharterBank will share in the losses on the asset pools covered
under the loss-share agreement. The loss-share transaction is
projected to maximize returns on the assets covered by keeping
them in the private sector. The transaction also is expected to
minimize disruptions for loan customers. For more information on
loss share, please visit:
http://www.fdic.gov/bank/individual/failed/lossshare/index.html
Customers with questions about today's transaction should call the
FDIC toll-free at 1-800-355-0650. Interested parties also can
visit the FDIC's Web site at
http://www.fdic.gov/bank/individual/failed/fnbf.html
The FDIC estimates that the cost to the Deposit Insurance Fund
will be $46.9 million. Compared to other alternatives,
CharterBank's acquisition was the least costly resolution for the
FDIC's DIF. The First National Bank of Florida is the 71st FDIC-
insured institution to fail in the nation this year, and the
eleventh in Florida. The last FDIC-insured institution closed in
the state was Lydian Private Bank, Palm Beach, on Aug. 19, 2011.
GARDEN RIDGE: Gets Second Act With AEA Investors Buyout
-------------------------------------------------------
Dow Jones' DBR Small Cap reports that in a second act for the home
decorating retail chain Garden Ridge Corp., AEA Investors LP has
agreed to buy GRD Holding III Corp., which is the indirect parent
of the home decorating retail chain, according to a report from
Standard & Poor Ratings Services.
About Garden Ridge
Headquartered in Houston, Texas, Garden Ridge Corporation --
http://www.gardenridge.com/-- is a megastore home decor retailer
that offers decorating accessories like baskets, candles, crafts,
home accents, housewares, party supplies, pictures and frames,
pottery, seasonal items, and silk and dried flowers. The Company
and its debtor-affiliates filed for chapter 11 protection (Bankr.
D. Del. Case No. 04-10324) on Feb. 2, 2004. Joseph M. Barry,
Esq., at Young Conaway Stargatt & Taylor LLP, represents the
Debtors. When the Debtors filed for protection from their
creditors, they listed estimated debts and assets of over
$100 million. The Bankruptcy Court confirmed the Debtors' First
Amended Joint Plan of Reorganization on Apr. 28, 2005. The Plan
took effect on May 12, 2005. David B. Stratton, Esq., at Pepper
Hamilton LLP represents the Post-Effective Date Committee.
GARDEN RIDGE: Moody's Assigns 'B2' Corporate Family Rating
----------------------------------------------------------
Moody's Investors Service assigned a first time B2 Corporate
Family and Probability of Default Ratings to GRD Holding III
Corporation, the parent company of Garden Ridge Corporation. At
the same time Moody's also assigned a B2 (LGD 3, 46%) rating to
the company's proposed senior secured term loan B due 2017. The
rating outlook is stable. The ratings assigned are subject to
receipt and review of final documentation.
RATINGS RATIONALE
The B2 Corporate Family Rating assigned to Garden Ridge reflects
the company's highly leveraged capital structure following the
debt-financed acquisition of controlling interest by AEA Investors
LP from Garden Holdings LLC, an affiliate of Three Cities
Research, Inc. Moody's anticipates Moody's Adjusted pro-forma
debt/EBITDA around 5.5 times and Moody's Adjusted interest
coverage (EBITA/interest expense) of 1.9 times. The rating also
takes into consideration the company's small size with 4/30/11 LTM
revenues of $338 million and 50 stores primarily located in the
Southern and Midwest US. Moody's believes recent declines in same
store revenues are a result of a shift in product mix to higher
margin offerings and reduced reliance on low-margin promotional
activities which are now largely behind the company. While
revenues have fallen, the company's EBITDA margins have expanded
significantly; achieving best in class levels compared to peers
while overall EBITDA has more than doubled in the past three years
as a result of a favorable shift in merchandise and improved cost
controls. The ratings take into consideration the breadth of the
company's product offering in the home decor category which is a
key part of its strategy.
The stable rating outlook reflects Moody's expectations the
company will maintain high operating margins (though growth
oriented investments may result in some moderation of recent
levels) and that it will prudently manage the expansion of its
store base over the near to intermediate term. The company is
expected to only modestly deleverage as the company increases its
investment in new store openings.
In view of the company's modest size the ratings are unlikely to
be upgraded in the near term. Over time, ratings could be upgraded
if debt/EBITDA is sustained below 4.5 times and interest coverage
is sustained above 2.25 times while also maintaining balanced
financial policies and generating greater scale.
Ratings could be downgraded if the company's recent positive
trends in operating margins begin to reverse, same store sales
show declines, or if the company exhibits inconsistent performance
of new store openings. Quantitatively ratings could be downgraded
if debt/EBITDA is sustained above 6.0 times or interest coverage
falls below 1.5 times.
These ratings were assigned:
Corporate Family Rating at B2
Probability of Default Rating at B2
$250 million senior secured term loan B due 2017 at B2 (LGD 3,
46%)
The principal methodology used in rating Garden Ridge Corporation
was the Global Retail Industry Methodology published in June 2011.
Other methodologies used include Loss Given Default for
Speculative-Grade Non-Financial Companies in the U.S., Canada and
EMEA published in June 2009.
Headquartered in Houston Texas, Garden Ridge Corporation is a big
box retailer of home decor products, operating 50 stores
throughout the South and Midwest as of July 21, 2011. Revenues for
the LTM period ending April 30, 2011 were $338 million.
GRAYMARK HEALTHCARE: Mark Moore Discloses 8.26% Equity Stake
------------------------------------------------------------
In an amended Schedule 13D filing with the U.S. Securities and
Exchange Commission, Mark P. Moore and his affiliates disclosed
that as of Sept. 5, 2011, they beneficially own 1,264,374 shares
of common stock of Graymark Healthcare, Inc., representing 8.26%
of the shares outstanding. A full-text copy of the filing is
available for free at http://is.gd/4AHxy9
About Graymark Healthcare
Oklahoma City, Okla.-based Graymark Healthcare, Inc. (NASDAQ:
GRMH) -- http://www.graymarkhealthcare.com/-- is one of the
largest providers of care management solutions to the sleep
disorder market based on number of independent sleep care centers
and hospital sleep diagnostic programs operated in the United
States.
As reported in the TCR on April 5, 2011, Eide Bailly LLP, in
Greenwood Village, Colo., expressed substantial doubt about
Graymark Healthcare's ability to continue as a going concern,
following the Company's 2010 results. The independent auditors
noted that the Company has suffered significant losses from
operations, anticipates additional losses in the next year and has
insufficient working capital as of Dec. 31, 2010, to fund the
anticipated losses.
The Company's balance sheet at June 30, 2011, showed
$31.32 million in total assets, $23.76 million in total
liabilities, and $7.56 million in total equity.
GREAT ATLANTIC: Robbins Geller Files Securities Class Action Suit
-----------------------------------------------------------------
Robbins Geller Rudman & Dowd LL disclosed that a class action has
been commenced in the United States District Court for the
District of New Jersey on behalf of purchasers of the securities
of The Great Atlantic & Pacific Tea Company, Inc. ("A&P") during
the period between July 23, 2009 and December 10, 2010 (the "Class
Period"). A&P is not named in this action as a defendant because
it filed for bankruptcy protection in December 2010.
If you wish to serve as lead plaintiff, you must move the Court no
later than 60 days from Sept. 9. If you wish to discuss this
action or have any questions concerning this notice or your rights
or interests, please contact plaintiff's counsel, Samuel H. Rudman
or David A. Rosenfeld of Robbins Geller at 800/449-4900 or
619/231-1058, or via e-mail at djr@rgrdlaw.com. If you are a
member of this class, you can view a copy of the complaint as
filed or join this class action online at
http://www.rgrdlaw.com/cases/aandp/ Any member of the putative
class may move the Court to serve as lead plaintiff through
counsel of their choice, or may choose to do nothing and remain an
absent class member.
The complaint charges certain of A&P's former and current
executives with violations of the Securities Exchange Act of 1934.
A&P was founded in 1859 and currently operates conventional
supermarkets, combination food and drug stores, and discount food
stores.
The complaint alleges that, throughout the Class Period,
defendants failed to disclose material adverse facts about the
Company's true financial condition, business and prospects.
Specifically, the complaint alleges that defendants failed to
disclose the following adverse facts, among others: (i) that A&P
was facing increased low-cost competition from retailers such as
Wal-Mart and Target Corp., which was negatively impacting the
Company's business and financial condition; (ii) that the Pathmark
acquisition was a complete disaster for the Company as Pathmark's
operations were in far worse condition than had been represented
to investors; (iii) that A&P was not operating according to
internal expectations and could not achieve the guidance sponsored
and/or endorsed by defendants; and (iv) that, as a result of the
foregoing, defendants lacked a reasonable basis for their positive
statements about the Company, its operations and prospects.
On July 23, 2010, A&P issued a press release announcing its fiscal
2010 first quarter results and that the Company had launched a
"turnaround," designed to strengthen A&P's operating and financial
foundation. On August 13, 2010, A&P announced the closing of
certain stores as part of the Company's operational and revenue-
driven turnaround initiative, the purported Turnaround Strategy,
designed to generate sustained profitability and cash flow, drive
sales growth, restore competitive margins to the business and
strengthen the foundation of the Company for the long term. Then
on December 10, 2010, A&P shocked investors after revealing, for
the first time, that the Company was performing so far below
expectations and the purported Turnaround Strategy was failing so
miserably that the Company would likely be forced to file for
bankruptcy protection. In response to this announcement, the price
of A&P securities declined precipitously.
Plaintiff seeks to recover damages on behalf of all purchasers of
A&P securities during the Class Period (the "Class"). The
plaintiff is represented by Robbins Geller, which has expertise in
prosecuting investor class actions and extensive experience in
actions involving financial fraud.
Robbins Geller, a 180-lawyer firm with offices in San Diego, San
Francisco, New York, Boca Raton, Washington, D.C., Philadelphia
and Atlanta, is active in major litigations pending in federal and
state courts throughout the United States and has taken a leading
role in many important actions on behalf of defrauded investors,
consumers, and companies, as well as victims of human rights
violations. The Robbins Geller Web site --
http://www.rgrdlaw.com/-- has more information about the firm.
About Great Atlantic & Pacific
Founded in 1859, Montvale, New Jersey-based Great Atlantic &
Pacific is a supermarket retailer, operating under a variety of
well-known trade names, or "banners" across the mid-Atlantic and
Northeastern United States. Before filing for bankruptcy in 2010,
A&P operated 429 stores in 8 states and the District of Columbia
under the following trade names: A&P, Waldbaum's, Pathmark,
Pathmark Sav-a-Center, Best Cellars, The Food Emporium, Super
Foodmart, Super Fresh and Food Basics. A&P had 41,000 employees
prior to the bankruptcy filing.
A&P and its affiliates filed Chapter 11 petitions (Bankr. S.D.N.Y.
Case No. 10-24549) on Dec. 12, 2010 in White Plains, New York. In
its petition, A&P reported total assets of $2.5 billion and
liabilities of $3.2 billion as of Sept. 11, 2010.
Paul M. Basta, Esq., James H.M. Sprayregen, Esq., and Ray C.
Schrock, Esq., at Kirkland & Ellis, LLP, in New York, and James J.
Mazza, Jr., Esq., at Kirkland & Ellis LLP, in Chicago, Illinois,
serve as counsel to the Debtors. Kurtzman Carson Consultants LLC
is the claims and notice agent. Lazard Freres & Co. LLC is the
financial advisor. Huron Consulting Group is the management
consultant. Dennis F. Dunne, Esq., Matthew S. Barr, Esq., and
Abhilash M. Raval, Esq., at Milbank, Tweed, Hadley & McCloy LLP,
represent the Official Committee of Unsecured Creditors.
A&P obtained court approval for a new contract with C&S Wholesale
Grocers Inc., its principal supplier. The contract is designed to
save A&P $50 million a year when the supermarket operator emerges
from Chapter 11 reorganization.
A&P sold postpetition 12 Super-Fresh stores in the Baltimore-
Washington area for $37.83 million, plus the value of inventory.
Thirteen other locations didn't attract buyers at auction and were
closed mid-July 2011.
GREEN EARTH: Incurs $12.2 Million Net Loss in Fiscal 2011
---------------------------------------------------------
Green Earth Technologies, Inc., filed with the U.S. Securities and
Exchange Commission its annual report on Form 10-K reporting a net
loss of $12.20 million on $7.50 million of net sales for the year
ended June 30, 2011, compared with a net loss of $12.88 million on
$2.43 million of net sales during the prior year.
The Company's balance sheet at June 30, 2011, showed $6.06 million
in total assets, $7.70 million in total liabilities, all current,
and a $1.64 million total stockholders' deficit.
Friedman LLP, in East Hanover, New Jersey, noted that the
Company's losses, negative cash flows from operations, working
capital deficit and its ability to pay its outstanding liabilities
through fiscal 2012 raise substantial doubt about its ability to
continue as a going concern.
A full-text copy of the Form 10-K is available for free at:
http://is.gd/wlqVGo
About Green Earth Technologies
White Plains, N.Y.-based Green Earth Technologies, Inc. (OTC QB:
GETG) -- http://www.getg.com/-- markets, sells and distributes
bio-degradable performance and cleaning products. The Company's
product line crosses multiple industries including the automotive
aftermarket, marine and outdoor power equipment markets.
GREEN MOUNTAIN: Moody's Says Unit Sale to Lift Liquidity Profile
----------------------------------------------------------------
Moody's Investors Service commented that the announced sale by
Green Mountain Coffee Roasters, Inc. of its U.S. coffee services
unit will further support its liquidity profile by lifting
liquidity sources to nearly $1 billion. On August 24, 2011 GMCR
announced the sale of all outstanding shares of Van Houtte USA
Holdings, Inc. to ARAMARK Refreshment Services LLC for $145
million. The proceeds will provide liquidity incremental to $825
million of availability under the company's $1 billion revolving
credit facility as of June 26, 2011.
GMCR's Ba3 Corporate Family Rating reflects the expanding base and
growing consumer demand for its category-leading Keurig single-cup
brewers, which in turn drive sales of its high-margin K-Cup
portion packs. The rating also reflects the company's aggressive
growth strategy that has involved the rapid consolidation of K-Cup
licensees in recent years and the formation of key strategic
partnerships that will spur more demand for Keurig brewers and K-
Cups. Heavy working capital needs and plant expansion required to
keep up with the company's rapid growth has resulted in negative
free cash flows that Moody's expects to persist for the
foreseeable future. However, the $843 million of cash raised
through equity sales and the pending divestiture provides
important financial cushion.
The principal methodology used in this rating was the Global
Packaged Goods published in July 2009.
Green Mountain Coffee Roasters, Inc. based in Waterbury, Vermont,
is a manufacturer of specialty coffee and other hot beverages, and
single serve coffee brewing systems. The company's operations are
managed through three business units: The Specialty Coffee unit
produces coffee, tea and hot cocoa from its family of brands,
including Tully's Coffee(R), Green Mountain Coffee(R), Newman's
Own(R) Organics coffee, Timothy's World Coffee(R), Diedrich(R),
and Van Houtte(R); the Keurig unit manufactures gourmet single-cup
brewing systems and GMCR produces the K-Cup(R) portion packs for
Keurig(R) Single-Cup Brewers; and the Canadian unit produces,
markets and sells Van Houtte(R) and the company's other brands in
K-Cup(R) portion packs and other packaging formats and is
responsible for the Company's integrated marketing efforts in
Canada. Sales for the last-twelve months ended June 25, 2011
totaled $2.3 billion.
GULF OFFSHORE: S&P Withdraws 'CCC+' Corporate Credit Rating
-----------------------------------------------------------
Standard & Poor's Ratings Services withdrew its preliminary 'CCC+'
corporate credit rating on Gulf Offshore Logistics Holdings LLC.
"We also withdrew the preliminary 'B-' issue rating and
preliminary '2' recovery rating on Gulf Offshore's previously
proposed $75 million secured floating-rate notes, as well as the
preliminary 'CCC-' issue rating and preliminary '6' recovery
rating on its previously proposed $35 million secured term B
notes. The company did not complete the financing that was the
basis for our assignment of preliminary ratings on May 27, 2011,"
S&P related.
"The rating actions are a result of the nonfinalization of Gulf
Offshore's proposed $75 million secured floating-rate note and $35
million term B note offering announced in May 2011," said Standard
& Poor's credit analyst Paul Harvey.
HOMBURG INVEST: To Restructure Under CCAA
-----------------------------------------
Homburg Invest Inc. disclosed that it and certain of its
subsidiaries applied to the Court for protection under the
Companies' Creditors Arrangement Act.
Deloitte & Touche LLP is the proposed Court-appointed monitor that
will oversee the proceeding under the CCAA. Deloitte & Touche
will periodically post the applications to the Court as well as
the orders issued by the Court on its website.
HII is hopeful that the appointment of the Monitor will address
the primary concerns of the Netherlands Authority for the
Financial Markets. In addition to the duties and obligations of
the Monitor as prescribed by law, HII has requested that the
Monitor be afforded certain additional powers that will facilitate
its ability to cooperate fully with the AFM, including the right
of the Monitor to communicate directly with the AFM with regard to
any matters concerning the HII group of companies.
"The purpose of the application is to allow us to restructure our
activities in an orderly fashion in the best long-term interests
of the Company and all of its stakeholders," said Hartmut Fromm,
Chairman of the Board of HII. "The CCAA application enables the
Board of Directors and Management to take measures to enhance the
balance sheet of the Company."
The CCAA is a Canadian federal law allowing insolvent companies
that owe their creditors in excess of $5 million to restructure
their business and financial affairs. CCAA is not bankruptcy. The
main purpose of the CCAA is to enable financially distressed
companies to avoid bankruptcy or foreclosure or seizure of assets
while maximizing returns for their creditors and preserving both
jobs and the company's value as a functioning business. CCAA
proceedings are carried out under the supervision of the Court.
The Company's CCAA filing does not affect Homburg Canada Real
Estate Investment Trust, which is an independent entity and
distinct from the Company and its subsidiaries.
About Homburg Invest
Homburg Invest Inc. owns and develops a diversified portfolio of
quality commercial real estate including office, retail,
industrial and development properties throughout Europe and the
United States, as well as an interest in Homburg Canada Real
Estate Investment Trust.
HOTEL AIRPORT: To Hire Latimer Biaggi for P.R. Airport Issues
-------------------------------------------------------------
Hotel Airport Inc. seeks permission from the U.S. Bankruptcy Court
for the District of Puerto Rico to retain Latimer, Biaggi, Rachid
& Godreau, LLP as Special Counsel to represent Debtor in any
matters related to Autoridad de los Puertos de Puerto Rico --
proceedings before the State Courts in which the proposed firm has
rendered prepetition services to Debtor -- and provide legal
counsel as to the said matter; and to assist debtor in
formulating, drafting the corresponding papers, and executing a
corporate merger with Caribbean Airport Facilities Inc.
The Debtor desires to retain Latimer, Biaggi, Rachid & Godreau,
LLP as their special counsel for the aforesaid purpose, subject to
the approval of the Court in accordance to Rule 2014 of the
Federal Rules of Bankruptcy Procedure, on the basis of at the rate
of $175.00 per hour and associates $125.00 per hour, at cost per
invoice, for other incurred and authorized expenses, for work
performed or to be performed by the firm's paralegals, rates which
are considered to be reasonable and fair, in line with services
comparable to those performed on behalf of other clients.
To the best of Debtor's knowledge, Latimer, Biaggi, Rachid &
Godreau, LLP is a disinterested person, as defined in 11 U.S.C.
'101(14) since neither its principals, nor any other person
associated with the firm.
About Hotel Airport
Hotel Airport Inc., in San Juan, Puerto Rico, filed for Chapter 11
bankruptcy (Bankr. D. P.R. Case No. 11-06620) on Aug. 5, 2011.
Judge Enrique S. Lamoutte Inclan oversees the case. Edgardo
Munoz, PSC, serves as bankruptcy counsel. In its petition, the
Debtor estimated US$10 million to $50 million in both assets and
debts. The petition was signed by David Tirri, its president.
HOTEL AIRPORT: Hires Lizarribar-Masini as PPPA Counsel
------------------------------------------------------
Hotel Airport Inc. seeks permission from the U.S. Bankruptcy Court
for the District of Puerto Rico to employ Lizarribar-Masini Law
Office to act as counsel.
Upon retention, the firm will, among other things:
a. represent debtor in all matters regarding the Puerto Rico
Ports Authority;
b. perform such other legal services for the Debtor as may be
required in this proceeding or in connection with the
operation of the Debtor's business;
c. employ other professional services, if necessary.
To the best of my knowledge, in the attached verified statements
Lydia Lizarribar-Masini and her firm have disclosed their
connection (if any) with the creditors, any party in interest,
their attorneys, their accountants, the US Trustee, or the
personnel of the US Trustee.
The terms of compensation agreed to are as follows, $150 dollars
per hour plus costs as per monthly invoices. The hourly rates are
subject to change to account for ordinary increases of the rates,
but subject to prior notice thereof.
About Hotel Airport
Hotel Airport Inc., in San Juan, Puerto Rico, filed for Chapter 11
bankruptcy (Bankr. D. P.R. Case No. 11-06620) on Aug. 5, 2011.
Judge Enrique S. Lamoutte Inclan oversees the case. Edgardo
Munoz, PSC, serves as bankruptcy counsel. In its petition, the
Debtor estimated US$10 million to $50 million in both assets and
debts. The petition was signed by David Tirri, its president.
HOVNANIAN ENTERPRISES: Incurs $50.9MM Net Loss in July 31 Quarter
-----------------------------------------------------------------
Hovnanian Enterprises, Inc., reported a net loss of $50.93 million
on $285.61 million of total revenues for the three months ended
July 31, 2011, compared with a net loss of $72.85 million on
$380.60 million of total revenues for the same period during the
prior year.
The Company also reported a net loss of $187.74 million on $793.28
million of total revenues for the nine months ended July 31, 2011,
compared with net income of $134.70 million on $1.01 billion of
total revenues for the same period a year ago.
The Company's balance sheet at July 31, 2011, showed $1.69 billion
in total assets, $2.09 billion in total liabilities, and a
$399.35 million total deficit.
"The housing market remains challenging primarily due to
uncertainty caused by general domestic economic and political
concerns, stock market volatility and turbulent international
economic conditions, all of which are taking their toll on
consumer confidence," commented Ara K. Hovnanian, chairman of the
Board, president and chief executive officer. "Despite this
difficult backdrop, our deliveries, revenues, gross margin and
cash flow for the third quarter were in line with our
expectations. However, we see very few indicators that any
recovery in the housing market has begun. As such, we are taking
appropriate steps to run our business based on current market
conditions, with a focus on maintaining adequate liquidity."
A full-text copy of the press release announcing the financial
results is available for free at http://is.gd/urv4gV
About Hovnanian Enterprises
Red Bank, New Jersey-based Hovnanian Enterprises, Inc. (NYSE: HOV)
-- http://www.khov.com/-- founded in 1959 by Kevork S. Hovnanian,
is one of the nation's largest homebuilders with operations in
Arizona, California, Delaware, Florida, Georgia, Illinois,
Kentucky, Maryland, Minnesota, New Jersey, New York, North
Carolina, Ohio, Pennsylvania, South Carolina, Texas, Virginia and
West Virginia. The Company's homes are marketed and sold under
the trade names K. Hovnanian Homes, Matzel & Mumford, Brighton
Homes, Parkwood Builders, Town & Country Homes, Oster Homes and
CraftBuilt Homes. As the developer of K. Hovnanian's Four Seasons
communities, the Company is also one of the nation's largest
builders of active adult homes.
* * *
As reported by the TCR on April 25, 2011, Fitch Ratings has
affirmed Hovnanian Enterprises, Inc.'s Issuer Default Rating (IDR)
at 'CCC'. The rating for HOV is influenced by the Company's
execution of its business model, land policies and geographic,
price point and product line diversity. The rating also reflects
the company's liquidity position, substantial debt and high
leverage.
As reported by the TCR on July 5, 2011, Standard & Poor's Ratings
Services lowered its corporate credit ratings on Hovnanian
Enterprises Inc. and its K. Hovnanian Enterprises Inc. subsidiary
to 'CCC' from 'CCC+'.
"The downgrade was driven by Hovnanian's declining cash position
as the company invests in land and new communities as a way to
bolster gross profits," said credit analyst George Skoufis. "We
also believe the housing recovery will be weaker and more
protracted than we previously expected. As a result, the company
will be challenged to ultimately address its highly leveraged
balance sheet if it does not begin to improve profitability."
HUNTSMAN ICI: Bank Debt Trades at 7% Off in Secondary Market
------------------------------------------------------------
Participations in a syndicated loan under which Huntsman ICI is a
borrower traded in the secondary market at 93.45 cents-on-the-
dollar during the week ended Friday, Sept. 9, 2011, an increase of
1.08 percentage points from the previous week according to data
compiled by Loan Pricing Corp. and reported in The Wall Street
Journal. The Company pays 250 basis points above LIBOR to borrow
under the facility. The bank loan matures on April 1, 2017, and
carries Moody's Ba2 rating and Standard & Poor's BB- rating. The
loan is one of the biggest gainers and losers among 79 widely
quoted syndicated loans with five or more bids in secondary
trading for the week ended Friday.
Huntsman Corp. -- http://www.huntsman.com/-- is a global
manufacturer and marketer of differentiated chemicals. Its
operating companies manufacture products for a variety of global
industries, including chemicals, plastics, automotive, aviation,
textiles, footwear, paints and coatings, construction, technology,
agriculture, health care, detergent, personal care, furniture,
appliances and packaging. Originally known for pioneering
innovations in packaging and, later, for rapid and integrated
growth in petrochemicals, Huntsman has more than 12,000 employees
and operates from multiple locations worldwide. The Company had
2008 revenues exceeding $10 billion.
In March 2010, Moody's Investors Service affirmed the debt ratings
of Huntsman Corporation (B1 Corporate Family Rating) and Huntsman
International LLC, a subsidiary of Huntsman.
ICE TREATS: Landlords Violated Automatic Stay in Ending Lease
-------------------------------------------------------------
Before Ice Treats One, Inc., Ice Treats Two, Inc., and Ice Treats
Three, Inc., commenced their bankruptcy cases, their landlords
commenced eviction proceedings against them and had them evicted
from their leased premises. After the evictions, the Debtors'
water ice operations were taken over by businesses who began
operating the water ice stores under the name of Rocco's Italian
Ice.
After filing for Chapter 11 protection, the Debtors filed the
Motion seeking, inter alia: (i) to have the Landlords and Business
Operators held in contempt for violating the automatic stay; (ii)
an order restoring possession to the Debtors of their leaseholds,
equipment and inventory; (iii) permission to assume their non-
residential real property leases under 11 U.S.C. Sec. 365; and
(iv) an award of damages against the Landlords and Business
Operators pursuant to 11 U.S.C. Sec. 362(k)(1).
In a Sept. 8, 2011 Opinion, Bankruptcy Judge Jean K. Fitzsimon
held that the lease was not effectively or properly terminated
pre-petition. Therefore, the Landlords and Business Operators
violated the automatic stay by exercising control of the Premises
after the Debtors filed their bankruptcy cases. Furthermore, the
Debtors have the right under Sec. 365 to assume the Lease provided
they satisfy the conditions for doing so. A copy of the Court's
decision is available at http://is.gd/QgB5uTfrom Leagle.com.
The landlord of Ice Treats One and Ice Treats Two is Reyes Real
Estate Corp.; the landlord of Ice Treats Four is Reyes Rockland
Street Properties, LLC.
The Business Operators are: (i) Rocco's Italian Ice -
Feltonviille; (ii) Rocco's Italian Ice - Lawncrest, LLC; and (iii)
Rocco's Italian Ice - Nicetown, LLC. The "principal" of the
Landlords is the husband of the principal of the Rocco's entities.
The Landlords and the Business Operators have filed a notice of
appeal from the Order.
About Ice Treats
Each of Ice Treats One, Inc., Ice Treats Two, Inc., and Ice Treats
Three, Inc., owns and operates a Rita's Water Ice store located in
Philadelphia, Pennsylvania. They filed individual Chapter 11
petitions (Bankr. E.D. Pa. Case Nos. 111-5317, 11-15318 and
11-15319) on July 6, 2011, each listing under $1 million in both
assets and debts.
INC RESEARCH: S&P Assigns 'B' Corporate Credit Rating
-----------------------------------------------------
Standard & Poor's Ratings Services assigned its 'B' corporate
credit rating to Raleigh, N.C.-based INC Research LLC. The outlook
is stable.
"At the same time, we assigned a 'B+' senior secured debt rating
and a '2' recovery rating to INC's $425 million senior secured
debt facility. We also assigned a 'B-' senior unsecured rating and
a '5' recovery rating to the $250 million senior unsecured notes,"
S&P related.
"The speculative-grade ratings on INC reflect the company's weak
business risk profile, given the volatile demand in the contract-
based business, the company's need to continue to successfully
compete against larger and better financed CROs, and the need to
quickly and effectively integrate the operations of Kendle," said
Standard & Poor's credit analyst Michael Berrien. "Following the
acquisition of Kendle, and INC's leveraged buyout (LBO) in 2010,
we consider INC's financial risk profile highly leveraged with
adjusted leverage of more than 6x."
J.CREW: Bank Debt Trades at 10% Off in Secondary Market
-------------------------------------------------------
Participations in a syndicated loan under which J.Crew is a
borrower traded in the secondary market at 90.25 cents-on-the-
dollar during the week ended Friday, Sept. 9, 2011, an increase of
1.06 percentage points from the previous week according to data
compiled by Loan Pricing Corp. and reported in The Wall Street
Journal. The Company pays 350 basis points above LIBOR to borrow
under the facility. The bank loan matures on Feb. 10, 2018, and
carries Moody's 'B1' rating and Standard & Poor's 'B' rating. The
loan is one of the biggest gainers and losers among 79 widely
quoted syndicated loans with five or more bids in secondary
trading for the week ended Friday.
J.Crew -- http://www.jcrew.com/-- is a nationally recognized
apparel and accessories retailer that differentiates itself
through high standards of quality, style, design and fabrics with
consistent fits and authentic details. J.Crew is an integrated
multi-channel, multi-brand specialty retailer that operates stores
and websites to consistently communicate with its customers. The
Company designs, markets and sells its products, including those
under the J.Crew, crewcuts and Madewell brands, offering complete
assortments of women's, men's and children's apparel and
accessories. Its customer base consists primarily of affluent,
college educated, professional and fashion-conscious women and
men. In 2011, J.Crew expanded its international e-commerce to
include shipping to the United Kingdom, while continuing to ship
anywhere in the U.S., Canada and Japan.
For the year ended January 29, 2011, J.Crew reported net income of
$121.5 million on total revenues of $1.72 billion compared with
net6 income of $123.4 million on total revenues of $1.58 billion
in 2010.
As of January 29, 2011, the Company's balance sheet showed $860.2
million in total assets, $349.0 million in total liabilities and
$511.1 million in total stockholders' equity.
J.C. EVANS: Files Schedules of Assets & Liabilities
---------------------------------------------------
J.C. Evans filed with the U.S. Bankruptcy Court for the Western
District of Texas, its schedules of assets and liabilities,
disclosing:
Name of Schedule Assets Liabilities
---------------- ------- -----------
A. Real Property $0
B. Personal Property $51,543,030
C. Property Claimed as
Exempt
D. Creditors Holding
Secured Claims $57,650,847
E. Creditors Holding
Unsecured Priority
Claims $0
F. Creditors Holding
Unsecured Non-priority
Claims $16,552,707
----------- --------------
TOTAL $51,543,030 $74,203,554
About J.C. Evans Construction
With roots stretching back over 55 years, J.C. Evans is a heavy
equipment construction company based in Leander, Texas. Through
J.C. Evans Construction Co., L.P., a Texas limited partnership
d/b/a/ American Aggregates, the Company owns and operates a
construction company specializing in heavy site preparation on
commercial, pipeline, utility and highway projects, including
excavating, trenching, site preparation and construction. Through
Adkins Land Development, L.P., a Texas limited partnership, the
Company owns a 700-acre quarry, which produces aggregate for use
in road construction.
J.C. Evans Construction Holdings is the holding company that owns
directly or indirectly each of the other entities. In turn,
Holdings is owned by a trust for the benefit of the current and
former employees of J.C. Evans through an Employee Stock Ownership
Plan.
Six affiliated companies filed for Chapter 11 bankruptcy (Bankr.
W.D. Tex. Case Nos. 11-11926 to 11-11931) on Aug. 1, 2011. These
are JCE Delaware Inc., J.C. Evans Construction Holdings, J.C.
Evans Nevada, LLC, EQUUS Development Inc., J.C. Evans Construction
and Adkins Land Development. The cases are jointly administered
before Judge Craig A. Gargotta. George H. Tarpley, Esq., and
Mark E. Andrews, Esq., at Cox Smith Matthews Incorporated, serve
as bankruptcy counsel. In its petition, JCE Delaware estimated
$50 million to $100 million in both assets and debts.
LAS VEGAS SANDS: Bank Debt Trades at 6% Off in Secondary Market
---------------------------------------------------------------
Participations in a syndicated loan under which Las Vegas Sands
Corp. is a borrower traded in the secondary market at 93.95 cents-
on-the-dollar during the week ended Friday, Sept. 9, 2011, an
increase of 1.10 percentage points from the previous week
according to data compiled by Loan Pricing Corp. and reported in
The Wall Street Journal. The Company pays 175 basis points above
LIBOR to borrow under the facility. The bank loan matures on
May 1, 2014, and carries Standard & Poor's 'BB' rating. The loan
is one of the biggest gainers and losers among 79 widely quoted
syndicated loans with five or more bids in secondary trading for
the week ended Friday.
About Las Vegas Sands
Las Vegas Sands Corp. owns and operates hotel and casino
integrated resort facilities in Las Vegas, NV, Bethlehem, PA,
Macau, China and Singapore. The company generates consolidated
annual net revenue of close to $7 billion.
As reported by the Troubled Company Reporter on June 17, 2011,
Standard & Poor's raised its corporate credit rating on the Las
Vegas Sands Corp. (LVSC) family of companies to 'BB' from 'BB-'.
Aside from Las Vegas Sands Corp., the LVSC family of rated
companies includes Las Vegas Sands LLC, its Venetian Casino Resort
LLC subsidiary, and affiliate VML U.S. Finance LLC. "All issue-
level ratings were also raised by one notch in conjunction with
the corporate credit rating upgrade. The rating outlook is
stable," S&P said.
"The rating upgrade reflects continued strong performance, and our
belief that under our updated long-term performance expectations,
Las Vegas Sands will maintain credit measures comfortably within
our threshold for a 'BB' corporate credit rating. While the
proposed Macau refinancing will add approximately $1.1 billion of
additional debt to prefund development, we expect consolidated
EBITDA to grow approximately 30% in 2011 compared with 2010, which
would result in consolidated operating lease-adjusted leverage
improving to the mid-4x area by the end of 2011. Given our
satisfactory assessment of LVSC's business risk profile, we would
be comfortable with leverage temporarily spiking as high as 5.5x
to fund development projects, but generally consider leverage
closer to 5x to be in line with a 'BB' corporate credit rating for
LVSC," S&P said.
On June 28, 2011, the TCR reported that Moody's revised Las Vegas
Sand Corp.'s rating outlook to positive from stable and affirmed
the company's Ba3 Corporate Family, Probability of Default, and
senior secured debt ratings. LVSC has an SGL-1 Speculative Grade
Liquidity rating.
The outlook revision to positive reflects a higher degree of
confidence on the part of Moody's that LVSC will be able to reduce
and sustain debt/EBITDA at or below 3.5 times on a gross basis,
the target leverage required for a one-notch ratings upgrade.
"Given Moody's current expectation of annual consolidated EBITDA
of between 2.7 and 2.8 billion for 2011, LVSC's debt/EBITDA will
likely be between 4.0 and 4.3 times by the end of that period, and
could reach 3.5 times by the end of 2012 if business conditions in
Asia remain strong," stated Keith Foley, a Senior Vice President
at Moody's. "However, LVSC would also need to adhere to a
conservative long-term financial policy in order to achieve a Ba2
Corporate Family Rating."
LAUFER BUILDERS: Case Summary & 11 Largest Unsecured Creditors
--------------------------------------------------------------
Debtor: Laufer Builders, Inc.
5446 W. Lake Drive
West Bend, WI 53095
Bankruptcy Case No.: 11-33330
Chapter 11 Petition Date: August 30, 2011
Court: United States Bankruptcy Court
Eastern District of Wisconsin (Milwaukee)
Judge: Pamela Pepper
Debtor's Counsel: Mark J. Brunner, Esq.
BRUNNER LAW OFFICE, LLC
233 N. Main Street
West Bend, WI 53095
Tel: (262) 335-1994
Fax: (262) 335-4294
E-mail: brunnerlaw@sbcglobal.net
Scheduled Assets: $1,334,869
Scheduled Debts: $3,808,878
A list of the Company's 11 largest unsecured creditors filed
together with the petition is available for free at
http://bankrupt.com/misc/wieb11-33330.pdf
The petition was signed by John T. Laufer, president.
Debtor-affiliate that filed separate Chapter 11 petition:
Petition
Debtor Case No. Date
------ -------- ----
John T Laufer 11-20599 01/18/11
LLS AMERICA: Stern Doesn't Apply to Substantive Consolidation
-------------------------------------------------------------
Bankruptcy Judge Patricia C. Williams said the order for
substantive consolidation is within the Court's authority as the
relief sought arises in a case under the U.S. Bankruptcy Code and
is fundamental to the bankruptcy process and to the adjudication
of claims. The narrow holding of Stern v. Marshall does not apply
to the Motion for Substantive Consolidation.
On June 30, 2011, the Chapter 11 Trustee for LLS America, LLC,
sought substantive consolidation of the Debtor's case with those
of Team Spirit America, LLC, D&D and Associates, Inc., and LLS
Canada, LLC. On Aug. 9, 2011, the Court granted the Trustee's
motion and ordered LLS America LLC companies to be substantively
consolidated with the debtor nunc pro tunc as of July 21, 2009,
and ordered LLS America LLC to circulate a proposed order
consistent with its oral ruling. Creditor Doris Nelson, the owner
of LLS America, and certain creditors of D&D filed an objection to
both the scope and content of the Trustee's proposed order and the
Court's constitutional authority to enter the order.
A copy of Judge Williams' Sept. 8, 2011 Memorandum Decision is
available at http://is.gd/seQ39Xfrom Leagle.com.
About Little Loan Shoppe
LLS America LLC, doing business as Little Loan Shoppe, operated an
online payday loan business. Affiliate Team Spirit America
provided the manpower, management and equipment for Little Loan
Shoppe. The companies are among a multitude of Canadian and
American business entities owned and operated by Doris E. Nelson,
a/k/a Dee Nelson, a/k/a Dee Foster. Investors claimed Ms. Nelson
operated a Ponzi scheme. Ms. Nelson allegedly told investors they
could earn as much as 60% on money her companies used to make
payday loans to consumers. American and Canadian investors bought
notes worth US$29 million and another C$26,000,000. However, the
investors received no payments after March 2009.
One investor group placed a related company, LLS-A LLC, into
bankruptcy in July 10, 2009.
LLS America LLC filed for bankruptcy (Bankr. D. Nev. Case No.
09-23021) on July 21, 2009, before Judge Linda B. Riegle. Gregory
E. Garman, Esq. -- bankruptcynotices@gordonsilver.com -- at Gordon
Silver, served as the Debtor's counsel. In its petition, the
Debtor listed $2,661,584 in assets and $24,013,837 in debts. The
petition was signed by Ralph Gamble, CEO of the Company.
The case was subsequently moved to Washington state (Bankr. E.D.
Wash. Case No. 09-06194). Charles Hall was appointed as examiner
in the case.
MAGNETEK INC: Gets Deficiency Notice From NYSE
----------------------------------------------
Magnetek, Inc. disclosed that the company received notification
from NYSE Regulation of being below the continued listing
standards of the New York Stock Exchange ("NYSE"). The Company is
considered below criteria established by the NYSE because the
Company's average market capitalization has been less than $50
million over a consecutive 30 trading-day period and its last
reported shareholders' equity was less than $50 million.
In accordance with NYSE procedures, the Company has 45 days from
the receipt of the notice to submit a business plan to the NYSE
demonstrating how it intends to regain compliance with the NYSE's
continued listing standards within 18 months. Magnetek intends to
develop and submit such a business plan within the required time
frame. The Listings and Compliance Committee of the NYSE will then
review the business plan for final disposition.
In the event the Committee accepts the plan, the Company will be
subject to quarterly monitoring for compliance with the business
plan and the Company's stock will continue to trade on the NYSE
during the plan period, subject to the Company's compliance with
other NYSE continued listing requirements. In the event the
Committee does not accept the business plan, the Company will be
subject to suspension by the NYSE and delisting procedures.
The Committee may, at its discretion, accept the Company's
business plan but choose to truncate the usual 18 month plan
period, given the recurrence of having fallen below the continued
listing standards. In June 2010, the Company was notified by NYSE
Regulation that it was not in compliance with the continued
listing standards of the NYSE. The Company subsequently submitted
a business plan and regained compliance with the listing standards
as of the end of the truncated 12 month plan period in June 2011.
Magnetek, Inc. manufactures digital power and motion control
systems used in material handling, people moving and energy
delivery. The Company is headquartered in Menomonee Falls, Wis.
in the greater Milwaukee area and operates manufacturing
facilities in Pittsburgh, Pa., Canonsburg, Pa. and Mississauga,
Ontario, Canada as well as Menomonee Falls. The Company reported
revenues of $110 million for its 2011 fiscal year, which ended
July 3, 2011.
MAQ MANAGEMENT: Wants Messana to Replace Talarchyk Merrill
----------------------------------------------------------
Maq Management, Inc.; Super Stop Petroleum, Inc.; Super Stop
Petroleum I, Inc.; and Super Stop Petroleum IV, Inc. ask the U.S.
Bankruptcy Court for the Southern District of Florida for
authority to employ Thomas M. Messana, Esq., at Messana, P.A., in
Fort Lauderdale, Florida, as general bankruptcy counsel nunc pro
tunc to Aug. 23, 2011.
The Debtors have already employed Talarchyk Merrill LLC as general
bankruptcy counsel but irreconcilable differences have arisen
between the Debtors and its Prior Counsel.
Messana received a $50,000 retainer for services to be rendered
post-bankruptcy of the within bankruptcy.
The terms of the proposed engagement are that the Debtors will pay
a $100,000 retainer to Messana. The retainer will be comprised
as:
-- the $50,000 payment; and
-- $50,000 within 60 days of the receipt of the first
retainer. This will be comprised of funds from BNK and any
unused retainer received from Prior Counsel after Prior
Counsel draws against his retainer pursuant to this Court's
Order awarding him final fees and costs in connection with
the bankruptcy case.
Before being paid anything in connection with the Chapter 11
cases, Messana intends to apply to the Court for allowance of
compensation for professional services rendered and reimbursement
of charges and disbursements incurred in this Chapter 11 case in
accordance with applicable provisions of the Bankruptcy Code, the
Bankruptcy Rules, the Local Bankruptcy Rules and the orders of the
Court. Messana will seek compensation for the services of each
attorney and paraprofessional acting on behalf of Debtors in this
case at the then-current hourly rate charged for services.
Mr. Messana assures the Court that he is a "disinterested person"
as the term is defined in Section 101(14) of the Bankruptcy Code.
A hearing on the Application was scheduled for September 2, 2011.
In a separate filing, the Debtors, Messana, and Talarchyk Merril
signed a stipulation agreeing to the counsel substitution.
About MAQ Management
Based in Boca Raton, Florida, MAQ Management, Inc., and three
other affiliates serve as commercial landlords to convenience
stores and gas stations in primarily in South Florida. They filed
for Chapter 11 bankruptcy (Bankr. S.D. Fla. Cases No. 11-26571 to
11-26574) on June 15, 2011. Affiliates that sought Chapter 11
protection are Super Stop Petroleum, Inc., Super Stop Petroleum I,
Inc., and Super Stop Petroleum IV, Inc. Judge Erik P. Kimball
presides over the case. Lawyers at Talarchyk Merrill, LLC, serve
as the Debtors' counsel. MAQ Management estimated assets and
debts of $1 million to $10 million. Super Stop estimated assets
and debts of $10 million to $50 million. The petitions were
signed by Mahammad A. Qureshi, CEO.
The U.S. Trustee announced that until further notice, it will not
appoint a committee of creditors for the Debtors' cases.
MAQ MANAGEMENT: Seeks to Employ Newmark for Eviction Matters
------------------------------------------------------------
Maq Management, Inc.; Super Stop Petroleum, Inc.; Super Stop
Petroleum I, Inc.; and Super Stop Petroleum IV, Inc., ask the U.S.
Bankruptcy Court for the Southern District of Florida for
authority to employ Tracy Newmark, Esq., at The Newmark Law Firm
PA, in Fort Lauderdale, Florida nunc pro tunc to Aug. 8, 2011, to
represent Debtors as special counsel to handle eviction matters.
The Newmark Firm receives a $10,000 semi-monthly flat fee in
exchange for professional legal services. The Newmark Firm
estimates that approximately 20% of legal work performed in
exchange for the flat fee is performed for the Debtors. The
Newmark Firm has agreed to accept as compensation a flat fee
arrangement of $2,000 semi-monthly, on or around the first and
15th day of each month.
Mr. Newmark assures the Court that his firm is a "disinterested
person" as the term is defined in Section 101(14) of the
Bankruptcy Code.
About MAQ Management
Based in Boca Raton, Florida, MAQ Management, Inc., and three
other affiliates serve as commercial landlords to convenience
stores and gas stations in primarily in South Florida. They filed
for Chapter 11 bankruptcy (Bankr. S.D. Fla. Cases No. 11-26571 to
11-26574) on June 15, 2011. Affiliates that sought Chapter 11
protection are Super Stop Petroleum, Inc., Super Stop Petroleum I,
Inc., and Super Stop Petroleum IV, Inc. Judge Erik P. Kimball
presides over the case. Lawyers at Talarchyk Merrill, LLC, serve
as the Debtors' counsel. MAQ Management estimated assets and
debts of $1 million to $10 million. Super Stop estimated assets
and debts of $10 million to $50 million. The petitions were
signed by Mahammad A. Qureshi, CEO.
The U.S. Trustee announced that until further notice, it will not
appoint a committee of creditors for the Debtors' cases.
MAYSVILLE INC: Wants Fifteen Encore's Case Dismissal Plea Denied
----------------------------------------------------------------
Maysville, Inc., asks the U.S. Bankruptcy Court for the Southern
District of Florida deny Fifteen Encore Platinum LLC's motion to
dismiss second filed case as a bad faith filing, or in the
alternative for relief from the automatic stay.
The Debtor explains that the bankruptcy case was not filed in bad
faith, to abuse the bankruptcy process or to circumvent a secured
creditor's legitimate collection efforts. It was filed to provide
the Debtor with an opportunity to propose a confirmable plan of
reorganization. The timing of the filing was primarily a product
of the expiration of the prejudice period from the Debtor's
previous chapter 11 case.
The Debtor notes that its prior Chapter 11 was dismissed because
it ran out of time to propose a confirmable plan. Indeed, during
the hearing that led to the dismissal of the prior case, the Court
acknowledged that "There is a confirmable plan that could have
been filed in this case."
The Debtor believes that the Chapter 11 case will be successful,
unlike the first case, because the Debtor's revenues have
improved, a new lender purchased Mellon United National Bank now
known as MUNB Loan Holdings, LLC's judgment and the Debtor's
principals are prepared to make a material contribution of new
value to fund the Debtor's emergence from Chapter 11.
The Debtor relates that its proposed Plan of Reorganization will
seek to reduce the amount of the mortgage on its real estate to
the value of the mortgagee's interest in the property, restate the
terms of the mortgage to reflect reasonable commercial rates and
terms and utilize the Debtor's current rent revenue and a new
value contribution by the Debtor's principals to pay the market
value of the resulting allowed secured claim as well as other
secured, priority, administrative and unsecured creditors.
In response to Fifteen Group's request for relief from the
automatic stay, the Debtor reasons that the property is necessary
for an effective reorganization; Fifteen Group has not shown that
it is an undersecured creditor, and fifteen group is adequately
protected.
About Maysville, Inc.
Maysville, Inc., owns and rents condominium and apartment units in
a property called the Platinum Condominium located at Biscayne
Boulevard and 29th Street in Miami, Florida.
Maysville filed its second voluntary petition under Chapter 11 on
August 11, 2011, with the U.S. Bankruptcy Court for the Southern
District of Florida (Miami) before the Hon. Laurel M. Isicoff.
The bankruptcy case is Maysville, Inc., Case No. 11-32532.
Jeffrey P. Bast, Esq., at Bast Amron LLP, in Miami, Florida --
jbast@bastamron.com -- serves as the Debtor's bankruptcy counsel.
Jeffery J. Pardo, Esq., at Pardo Gainsburg P.L., in Miami,
Florida, is the Debtor's special litigation counsel.
The Debtor disclosed $17,590,927 in assets and $25,076,637 in
liabilities.
A meeting of creditors required under Section 341(a) of the
Bankruptcy Code will be held on Sept. 13, 2011, at 11:30 a.m., at
51 SW First Ave, Room 1021, in Miami, Florida.
Deadline to file a complaint to determine dischargeability of
certain debts is November 14, 2011. Proofs of Claim are due by
Dec. 12, 2011.
MEDPACE INC: S&P Assigns 'B+' Corporate Credit Rating
-----------------------------------------------------
Standard & Poor's Ratings Services assigned its 'B+' corporate
credit rating to Cincinnati-based contract research organization
Medpace Inc. The outlook is stable.
"At the same time, we assigned a 'B+' issue-level rating and '4'
recovery rating to the company's $335 million senior secured
credit facility. The facility consists of a $50 million senior
secured revolver due 2016 and $285 million senior secured term
loan due 2017," S&P related.
"The rating on Medpace reflects the company's weak business risk
profile, highlighted by its small position in contract research
services and the uncertain demand in the contract-based business,"
said Standard & Poor's credit analyst Michael Berrien. The
company's aggressive financial risk profile reflects leverage of
4.6x, following its leveraged buyout by financial sponsor CCMP
Capital.
MONTEBELLO, CA: Wins Dismissal of Lawsuit by Local Businessman
--------------------------------------------------------------
The Los Angeles Superior Court has dismissed a lawsuit against the
City of Montebello and the city's Community Redevelopment Agency,
marking another step in the city's progress towards restoring
confidence its financial recovery.
According to the court's decision on August 31, the lawsuit
brought by local businessman Ara Sevacherian had no merit since
the city has already repaid funds borrowed to cover the city's
short-term cash flow needs. The court found that the city fully
satisfied its financial obligations to the redevelopment agency at
the time the agreement was terminated.
In June 2010, the city borrowed $16.8 million in short-term Tax
and Revenue Anticipation Notes, or TRANs, from the redevelopment
agency and repaid the notes in full in June 2011. Cities, school
districts and community college districts frequently use low-
interest TRAN notes to tide them over during short 'dry periods'
of low cash flow before receiving anticipated revenue.
This summer, for example, the City of Los Angeles issued $1.2
billion in short-term TRAN notes; the City of San Jose, $125
million and the City of West Covina, $9.49 million. The notes are
sold through investment banks, purchased by investors and must be
repaid within one fiscal year.
The lawsuit's dismissal clears the path for the city to issue up
to $3.9 million in short-term notes in mid-September following
city council approval on August 24. This is one element of a
comprehensive plan to restore the city's financial health after a
series of poor practices and missteps by previous city
administrators and others who are no longer with the city.
In only three months since the plan was adopted, Montebello has
achieved a balanced budget with a $1 million reserve, and
continues to make progress on the city's established priority of
updating financial records and processes.
According to Mayor Art Barajas, "I am confident that the City of
Montebello has turned the corner. We are in our strongest
financial position in recent years." He added, "The city has
certainly had its hurdles over the past year, but instead of
stumbling and falling, the city has pulled itself up by its
bootstraps and we are getting our house in order."
Barajas explained, ". . . . sound, stable leadership is in place.
The city's past practice of shifting restricted funds to balance
the bottom line of the General Fund account has stopped. New
auditors have reviewed the city's books and resolved many of the
poor past practices of prior city administrators, finance
directors and city council members. Claims of 'errant payments to
developers from off the book' accounts have been proven unfounded
and are now resolved."
Said Vice Mayor Frank Gomez, "I want to emphasize that there is
absolutely no truth to the rumor that the city was ever
contemplating bankruptcy. That never was and is still not an
option. We are confident that the financial marketplace will
acknowledge our continued progress and support the issuance of the
city's short-term notes in September."
The city's in-depth, five-year Financial Recovery Plan to achieve
financial stability has already reaped results.
According to Larry Kosmont, interim city administrator,
"Montebello's budget was unbalanced for more than five years. The
city council, staff and consultant team have made a Herculean
effort to institute new controls, make budget cutbacks and find
new sources of revenue. The Financial Recovery Plan will close
the General Fund structural deficit and minimize or resolve
unfunded liabilities."
Recent accomplishments include:
-- Budgetary Savings. City departments have cut back costs and
employees have agreed to contribute up to nine percent of
salaries towards pension costs. Estimated savings: over $1.5
million for the 2011/12 fiscal year.
-- Oil levy Extension. Oil operator PXP has voluntarily agreed to
an oil levy extension. Estimated revenue: $1 million per year.
-- Increased User Fees. The city has increased user fees and
charges, including plan check fees, animal license fees and
other fees. Estimated revenue: $435,000 to $575,000 per year.
-- New Costco Fuel Center. The city will support Costco's plans
to acquire city land and to develop a customer fuel station.
Estimated revenue: over $110,000 per year in sales and gas tax
revenues.
Said Kosmont, "The city has made tremendous progress in fixing
problems caused by poor past procedures and processes including a
lack of financial controls. However, the management team is
realistic about the fact that some questions and deficient
administrative processes remain and will not rest until these
matters are resolved."
Kosmont confirmed that the city is cooperating with several
agencies that are conducting audits or investigations into past
activities. He noted that the State Controller's Office has
conducted its audit and provided working draft findings and
indicated 'no surprises' so far. HUD's recent audit and related
FBI investigation, which focused on the use of federal housing
money in 2009, has positively resulted in an action plan submitted
by the city with HUD's support.
On August 31, 2011 the city repaid nearly one-third of the funds
requested by HUD and will have satisfied the balance of this
year's required payments by the end of September. "Our
relationships with these agencies are improving as they see the
city's dedication to positive and timely resolution," said
Kosmont.
In May 2011, the city hired First Southwest Company as financial
advisors and Kosmont Companies of Los Angeles as interim city
administrator and turnaround specialists. In July, the city
retained De La Rosa & Co, Los Angeles-based investment bankers, to
sell short-term notes in September.
The city attorney's office, represented by Alvarez-Glasman &
Colvin of the City of Industry and special counsel AlvaradoSmith
of Los Angeles defended the city and redevelopment agency to win
dismissal of the Sevacherian lawsuit.
MOUND ROAD: Case Summary & 3 Largest Unsecured Creditors
--------------------------------------------------------
Debtor: Mound Road Realty Venture, LLC
21807 Middlebelt Road, Ste. 102
Farmington Hills, MI 48334
Bankruptcy Case No.: 11-63532
Chapter 11 Petition Date: September 1, 2011
Court: United States Bankruptcy Court
Eastern District of Michigan (Detroit)
Judge: Thomas J. Tucker
Debtor's Counsel: David G. Dragich, Esq.
James Stephen Harrington, III, Esq.
HARRINGTON DRAGICH, PLLC
21043 Mack Avenue
Grosse Pointe Woods, MI 48236
Tel: (313) 886-4550
E-mail: ddragich@harringtondragich.com
jharrington@harringtondragich.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 three largest unsecured creditors filed
together with the petition is available for free at
http://bankrupt.com/misc/mieb11-63532.pdf
The petition was signed by David Jankowski, manager.
MSR RESORT: Buyer Offers $170 Million for Doral Golf
----------------------------------------------------
Bill Rochelle, the bankruptcy columnist for Bloomberg News,
reports that The Doral Golf Resort & Spa in Miami, one of five
resorts foreclosed in January by Paulson & Co. and Winthrop Realty
Trust, has a buyer offering $170 million, according to papers
filed in bankruptcy court.
According to the report, the potential buyer wasn't identified. A
formal contract, nearing completion, will allow for an auction and
the receipt of higher offers, the filing said.
The owners say the $170 million offer implies a value for all the
resorts "significantly" exceeding the $1.5 billion in debt. The
Doral sale alone will reduce debt by 11 percent and eliminated
$9.5 million in annual interest expense, according to court
papers.
For future commercial or residential development, the resorts
intend to retain the so-called White Course, one of the five
courses at the Doral.
According to Mr. Rochelle, the disclosure was made in the resort's
second motion for an extension of the exclusive right to propose a
Chapter 11 plan. Sept. 20 is the hearing date for the exclusivity
motion. If granted, no one else could file a reorganization plan
before Jan. 27.
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.
NAVISTAR INT'L: Posts $1.4 Billion Net Income in July 31 Quarter
----------------------------------------------------------------
Navistar International Corporation filed with the U.S. Securities
and Exchange Commission its quarterly report on Form 10-Q
reporting net income of $1.40 billion on $3.53 billion of net
sales and revenues for the three months ended July 31, 2011,
compared with net income of $129 million on $3.22 billion of net
sales and revenues for the same period during the prior year.
The Company also reported net income of $1.50 billion on $9.63
billion of net sales and revenues for the nine months ended
July 31, 2011, compared with net income of $217 million on $8.77
billion of net sales and revenues for the same period a year ago.
The Company's balance sheet at July 31, 2011, showed $11.17
billion in total assets, $10.42 billion in total liabilities, $5
million in redeemable equity securities and $752 million in total
stockholders' equity.
"The industry continued its recovery in the third quarter, and our
results reflect this strengthening as well as our continued
investments for future growth. We introduced new products for our
growing global presence, invested in our engineering integration
and heavy engine strategies, and took additional actions to reduce
costs and further increase our manufacturing flexibility," said
Daniel C. Ustian, Navistar chairman, president and chief executive
officer. "As a result, we are well positioned to deliver a strong
fourth quarter, achieve our adjusted full-year earnings of $5 to
$6 per share, and enter 2012 with positive momentum."
A full-text copy of the Form 10-Q is available for free at:
http://is.gd/BfYfFx
About Navistar International
Navistar International Corporation (NYSE: NAV) --
http://www.Navistar.com/-- is a holding company whose
subsidiaries and affiliates subsidiaries produce International(R)
brand commercial and military trucks, MaxxForce(R) brand diesel
engines, IC Bus(TM) brand school and commercial buses, Monaco RV
brands of recreational vehicles, and Workhorse(R) brand chassis
for motor homes and step vans. It also is a private-label
designer and manufacturer of diesel engines for the pickup truck,
van and SUV markets. The company also provides truck and diesel
engine parts and service. Another affiliate offers financing
services.
Navistar has a 'BB-/Stable/--' corporate credit rating from
Standard & Poor's and a 'B1' Corporate Family Rating and
Probability of Default Rating from Moody's Investors Service.
Moody's said in October 2010 that Navistar's B1 rating could
improve if the North American truck market remains on track for a
sustained recovery into 2011, and Navistar's operational
initiatives to moderate its vulnerability to the truck cycle show
evidence of taking hold.
NEBRASKA BOOK: Can Execute and Implement Plan Support Agreement
---------------------------------------------------------------
The U.S. Bankruptcy Court for the District of Delaware approved
Nebraska Book Company, Inc.'s motion for approval of the execution
and implementation of a plan support agreement between the
Debtors, the 8.625% Noteholders, the AcqCo Noteholders and Weston
Presidio dated Aug. 24, 2011.
The Debtors and consenting parties are authorized to execute and
perform under the Plan Support Agreement and are authorized to
enter into amendments to the Plan Support Agreement.
As reported by the Troubled Company Reporter on Sept. 9, 2011,
under the agreement, in exchange for Weston Presidio's support of
the Plan, the Debtors have agreed to provide an enhanced package
of new warrants.
Prepetition, Nebraska Book reached an agreement on a restructuring
plan with holders of more than 95% of its 8.625% senior
subordinated notes and more than 75% of its 11% discount notes.
Nebraska Book's bankruptcy plan will give control of the 96-year-
old company to bondholders, according to Reuters. Nebraska Book's
prepackaged" plan calls for holders of its 8.625% subordinated
notes to get a 78 percent equity stake, $110 million of new
unsecured notes and $30.6 million in cash. They would recover
about 87 cents on the dollar.
Holders of Nebraska Book's 11% senior discount notes would get the
remaining equity, and recover about 7 cents on the dollar, Reuters
relates.
Secured lenders, owed about $26.3 million, and secured
noteholders, owed about $200 million, would be paid in full with
cash.
If the owners of the holding company's equity interests don't
oppose the plan, they would get warrants to purchase some of the
reorganized company's equity, according to Bloomberg News.
A full-text copy of the Disclosure Statement is available for free
at http://bankrupt.com/misc/NEBRASKA_DS.pdf
A full-text copy of the Chapter 11 Plan is available for free
at http://bankrupt.com/misc/NEBRASKA_PLAN.pdf
About Nebraska Book Company
Lincoln, Nebraska-based Nebraska Book Company, Inc., is one of the
leading providers of new and used textbooks for college students
in the United States. Nebraska Book and seven affiliates filed
separate Chapter 11 petitions (Bankr. D. Del. Case Nos. 11-12002
to 11-12009) on June 27, 2011. Hon. Peter J. Walsh presides over
the case. lawyers at Kirkland & Ellis LLP and Pachulski Stang
Ziehl & Jones LLP, serve as the Debtors' bankruptcy counsel. The
Debtors; restructuring advisors are AlixPartners LLC; the
investment bankers are Rothschild, Inc.; the auditors are Deloitte
& Touche LLP; and the claims agent is Kurtzman Carson Consultants
LLC. As of the Petition Date, the Debtors had consolidated assets
of $657,215,757 and debts of $563,973,688.
JPMorgan Chase Bank N.A., as administrative agent for the DIP
lenders, is represented by lawyers at Richards, Layton & Finger,
P.A., and Simpson Thacher & Bartlett LLP. J.P. Morgan Investment
Management Inc., the DIP arranger, is represented by lawyers at
Bayard, P.A., and Willkie Farr & Gallagher LLP.
An ad hoc committee of holders of more than 50% of the Debtors'
Second Lien Notes is represented by lawyers at Brown Rudnick. An
ad hoc committee of holders of the Debtors' 8.625% unsecured
notes are represented by Milbank, Tweed, Hadley & McCloy LLP.
The Official Committee of Unsecured Creditors selected Lowenstein
Sandler LLP and Stevens & Lee, P.C., as lawyers and Mesirow
Financial Inc. as financial advisers.
Nebraska Book has prepared a pre-packaged Chapter 11 plan that
would swap some of the existing debt for new debt, cash and the
new stock.
NEIMAN MARCUS: Bank Debt Trades at 6% Off in Secondary Market
-------------------------------------------------------------
Participations in a syndicated loan under which Neiman Marcus
Group, Inc., is a borrower traded in the secondary market at 93.50
cents-on-the-dollar during the week ended Friday, Sept. 9, 2011,
an increase of 1.20 percentage points from the previous week
according to data compiled by Loan Pricing Corp. and reported in
The Wall Street Journal. The Company pays 350 basis points above
LIBOR to borrow under the facility. The bank loan matures on
May 16, 2018, and carries Moody's 'B2' rating and Standard &
Poor's 'BB-' rating. The loan is one of the biggest gainers and
losers among 79 widely quoted syndicated loans with five or more
bids in secondary trading for the week ended Friday.
About Neiman Marcus
Neiman Marcus Group, Inc. headquartered in Dallas, Texas, operates
41 Neiman Marcus stores, 2 Bergdorf Goodman Stores, 6 CUSP stores,
30 Last Call clearance centers, and a direct on-line and catalog
business. Total revenues are just under $4 billion.
As reported by the Troubled Company Reporter on May 18, 2011,
Moody's upgraded Neiman Marcus Group, Inc.'s Corporate Family
Rating and Probability of Default Rating to B2 from B3. In
addition, Moody's affirmed NMG's Speculative Grade Liquidity
rating at SGL-1 and $2,060 million senior secured term loan at B2.
The rating outlook is stable. This rating action concludes the
review for possible upgrade initiated on April 25, 2011.
"Neiman Marcus has notably strengthened its capital structure by
repaying about $200 million in debt and successfully closing on a
refinancing that extended its nearest debt maturity from 2013 to
2015," said Maggie Taylor, a senior credit officer with Moody's.
"The stronger capital structure combined with solid operating
results and lower pro forma annual interest expense will lead to
improved credit metrics," added Ms. Taylor." Pro forma for the
debt reduction for the upcoming year ending July 31, 2011, Moody's
expects NMG debt to EBITDA to fall to about 6.0 times from 6.6
times currently, and EBITA to interest expense to improve to about
2.0 times from 1.4 times.
On April 29, 2011, the TCR reported that Fitch Ratings has
affirmed its ratings on Neiman Marcus, including the Issuer
Default Rating (IDR) on Neiman Marcus, Inc., and its subsidiary,
The Neiman Marcus Group, Inc. (NMG), at 'B'. The Rating Outlook
has been revised to Positive from Stable, based on the expectation
that the announced refinancings are completed.
Neiman Marcus is currently in the process of upsizing its secured
term loan facility to $2.060 billion from $1.506 billion, with a
term of seven years. In addition, it is also upsizing its secured
credit facility to $700 million from $600 million, with a five
year maturity. Neiman Marcus expects to redeem the company's
$752.4 million of 9%/9/75% senior notes due 2015 with the $550
million in incremental proceeds from the term loan refinancing as
well as $260 million of cash on hand.
NEW LEAF: Scott Ricketts Resigns from Board of Directors
--------------------------------------------------------
Scott Ricketts tendered and New Leaf Brands, Inc.'s Board of
Directors accepted his resignation as a member of the Company's
Board of Directors. Mr. Ricketts was not a member of any
committee of the Board at the time of his resignation. He
resigned in order to devote more time to his personal business
activities.
About New Leaf Brands
Scottsdale, Ariz.-based New Leaf Brands, Inc. develops, markets
and distributes healthy and functional ready-to-drink teas under
the New Leaf(R) brand.
The Company reported a net loss of $9.13 million on $4.25 million
of net sales for the year ended Dec. 31, 2010, compared with a net
loss of $10.93 million on $3.45 million of net sales for the same
period during the prior year.
As reported by the TCR on June 2, 2011, Mayer Hoffman McCann P.C.,
in Phoenix, Arizona, expressed substantial doubt about the
Company's ability to continue as a going concern. The independent
auditors noted that the Company has suffered recurring losses from
operations, has a working capital deficiency, was not in
compliance with certain financial covenants related to debt
agreements, and has a significant amount of debt maturing in 2010.
Mayer Hoffman issued negative going concern qualifications
following the release of the 2009 and 2010 results.
NEWPAGE CORP: Moody's Cuts Probability of Default Rating to 'D'
---------------------------------------------------------------
Moody's Investors Service lowered NewPage Corporation's
probability of default rating (PDR) to D from Caa3, the corporate
family rating (CFR) to Ca from Caa3 and the company's senior
secured notes rating to Caa3 from Caa2. The company's second-lien
notes and subordinate bond ratings were affirmed at Ca and C
respectively. The rating outlook was changed to stable from
negative. Subsequent to the actions, all ratings of NewPage will
be withdrawn as the company has entered bankruptcy proceedings.
Please refer to Moody's ratings withdrawal policy on moodys.com.
Downgrades:
Issuer: NewPage Corporation
-- Probability of Default Rating, Downgraded to D from Caa3
-- Corporate Family Rating, Downgraded to Ca from Caa3
-- Senior Secured Regular Bond/Debenture, Downgraded to Caa3
from Caa2
Outlook Actions:
Issuer: NewPage Corporation
-- Outlook, Changed To Stable From Negative
RATINGS RATIONALE
The downgrade follows the announcement that NewPage and certain of
its U.S. subsidiaries commenced voluntary cases under Chapter 11
of the United States Bankruptcy Code and NewPage Port Hawkesbury
Corp. (a Canadian subsidiary) has brought proceedings before the
Supreme Court of Nova Scotia under the Companies' Creditors
Arrangement Act of Canada.
The principal methodology used in rating NewPage Corporation was
the Global Paper and Forest Products Industry Methodology
published in September 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.
Headquartered in Miamisburg, Ohio, NewPage, a private company, is
the largest coated paper producer in North America (with an
approximate 35% market share based on production capacity) with 20
paper machines at 10 paper manufacturing mills. The company has
annual capacity of approximately 2.9 million tons of coated paper,
1 million tons of uncoated paper and approximately 200,000 tons of
specialty paper. For the last-twelve months ending June 2011, the
company generated revenues of approximately $3.7 billion. The
company is jointly owned by Cerberus Capital (79.9%) and Stora
Enso Oyj (20.1%).
OTERO COUNTY: Court Approves KCC as Claims Agent
------------------------------------------------
The U.S. Bankruptcy Court for the District of New Mexico has
authorized Otero County Hospital Association Inc. to appoint
Kurtzman Carson Consultants LLC as noticing, claims and balloting
agent as of the Petition Date.
The Debtor will pay KCC its customary hourly rates for services
rendered that are in effect from time to time, and to reimburse
KCC according to its customary reimbursement policies.
About Otero County Hospital
Otero County Hospital Association Inc. filed for Chapter 11
protection (Bankr. D. N.M. Case No. 11-13686) in Albuquerque, New
Mexico, on Aug. 16, 2011, listing as assets of as much as $500
million and debt of as much as $100 million. The Alamogordo, New
Mexico-based nonprofit developed and operates the Gerald Champion
Regional Medical Center. GCRMC serves a total population of
approximately 70,000 people.
Otero County Hospital Association also does business as Mountain
View Catering.
Judge Robert H. Jacobvitz presides over the case. Craig H. Averch,
Esq., and Roberto J. Kampfner, Esq., at White & Case, LLP, in Los
Angeles; and John D. Wheeler, Esq., at John D. Wheeler &
Associates, PC, in Alamogordo, New Mexico, serve as bankruptcy
counsel.
The petition was signed by William Morgan Hay, chief financial
officer.
PACIFICUS REAL ESTATE: Seeks to Employ Carmody Meach as Accountant
------------------------------------------------------------------
PacificUS Real Estate Group, et al., ask the U.S. Bankruptcy Court
for the Central District of California for permission to employ
Carmody Meach & Choo LLP as accountants to prepare the Debtors'
consolidated 2010 tax returns and to provide any tangential
services related to the preparation of the returns.
The persons and their hourly rates that will be utilized to
perform the services are:
Wayne H. Choo $150
Roger E. Carmody $150
Lee P. Meach $150
CM&C estimates that the overall charge for the Services will be
approximately $7,500, barring any unforeseen circumstances.
The Debtor will be paying a retainer amounting $3,000 to CM&C to
secure payment for the Services. The retainer will be funded from
a draw on the postpetition line of credit approved by the Court.
Mr. Choo assures the Court that his firm is a "disinterested
person" as the term is defined in Section 101(14) of the
Bankruptcy Code.
About Pacificus Real Estate
PacificUS Real Estate Group, based in Pasadena, California, owns
various real estate properties, including the "SilverTip
Property"located at the south entrance of Yosemite National Park.
It filed for Chapter 11 bankruptcy (Bankr. C.D. Calif. Case No.
11-40120) on July 14, 2011. Judge Ernest M. Robles presides over
the case. The Debtor is represented by Ron Bender, Esq., at
Levene, Neale, Bender, Yoo & Brill, LLP. In its petition, the
Debtor estimated assets and debts of $10 million to $50 million.
The petition was signed by Paul J. Giuntini, its president.
PacificUS said it intends to reorganize through a sale of -- or a
joint venture to develop -- the SilverTip Property.
PACIFICUS REAL ESTATE: Court OKs Levene Neale as Counsel
--------------------------------------------------------
PacificUS Real Estate Group has been authorized by the U.S.
Bankruptcy Court for the Central District of California to employ
Levene Neale Bender Yoo & Brill LLP as bankruptcy counsel
effective as of July 14, 2011.
Ron Bender, Esq. and Todd M. Arnold, Esq. will be the primary
attorneys at the firm responsible for the representation of the
Debtor during its Chapter 11 case. The current hourly billing
rates for these attorneys are $595 and $495.
About Pacificus Real Estate
PacificUS Real Estate Group, based in Pasadena, California, owns
various real estate properties, including the "SilverTip
Property"located at the south entrance of Yosemite National Park.
It filed for Chapter 11 bankruptcy (Bankr. C.D. Calif. Case No.
11-40120) on July 14, 2011. Judge Ernest M. Robles presides over
the case. The Debtor is represented by Ron Bender, Esq., at
Levene, Neale, Bender, Yoo & Brill, LLP. In its petition, the
Debtor estimated assets and debts of $10 million to $50 million.
The petition was signed by Paul J. Giuntini, its president.
PacificUS said it intends to reorganize through a sale of -- or a
joint venture to develop -- the SilverTip Property.
PERKINS & MARIE: Wins OK for Chapter 11 Plan Vote
-------------------------------------------------
Perkins & Marie Callender's Inc. has disclosed that the United
States Bankruptcy Court for the District of Delaware has approved
the disclosure statement filed by the Company in connection with
its proposed plan of reorganization, subject to the Company filing
the final version of the Disclosure Statement with the Bankruptcy
Court. Approval of the Disclosure Statement clears the way for
the Company to solicit votes from creditors with respect to the
Plan.
In connection with approving the Disclosure Statement, the
Bankruptcy Court established a voting deadline of October 14, 2011
for creditors that are eligible to vote on the Plan and scheduled
a hearing regarding confirmation of the Plan for October 31, 2011.
Jay Trungale, President and Chief Executive Officer of the
Company, said, "The approval of the Disclosure Statement moves us
a significant step closer to completing our restructuring process
and will enable us to pursue confirmation of our Plan at the end
of October. We expect to emerge from our restructuring process
later this year in a significantly strengthened financial
position, and we continue to appreciate the support of our
employees, customers, suppliers and other parties as we complete
this process."
Lance Duroni at Bankruptcy Law360 reports that Perkins & Marie
told a Delaware bankruptcy judge on Thursday that it had increased
a cash pool available to junior creditors to $7 million, as the
Company prepares to submit its reorganization plan to a creditor
vote.
Law360 relates that Committee attorney Mark R. Somerstein of Ropes
& Gray LLP said that with the added cash -- up from $1.5 million
under Perkins' original plan -- the official committee of
unsecured creditors will now recommend that its constituents vote
in favor of the plan.
About Perkins & Marie
Based in Memphis, Tennessee, Perkins & Marie Callender's Inc., fka
The Restaurant Company, is the owner or franchiser of nearly 600
family-dining restaurants, the Perkins Restaurants and Marie
Callender's. Perkins & Marie and several affiliates filed for
Chapter 11 bankruptcy (Bankr. D. Del. Lead Case No. 11-11795) on
June 13, 2011. Perkins & Marie disclosed $290 million in assets
and $441 million in debt as of the Chapter 11 filing.
Judge Kevin Gross presides over the case. Robert S. Brady, Esq.,
and Robert F. Poppiti, Jr., Esq., at Young, Conaway, Stargatt &
Taylor, LLP; and Mitchel H. Perkiel, Esq., Hollace T. Cohen, Esq.,
and Brett D. Goodman, Esq., at Troutman Sanders, LLP, serve as
bankruptcy counsel. The Debtors' financial advisors are Whitby,
Santarlasci & Company. Their claims agent is Omni Management
Group, LLC. Deloitte Tax LLPserves as tax services provider.
DIP lender Wells Fargo is represented by lawyers at Paul,
Hastings, Janofsky & Walker LLP.
Roberta A. Deangelis, U.S. Trustee for Region 3, appointed seven
unsecured creditors to serve on the Official Committee of
Unsecured Creditors in the Debtors' cases. Ropes & Gray LLP
represents the Committee.
PHILLIPS RENTAL: Files First Modified Disclosure Statement
----------------------------------------------------------
Phillips Rental Properties, LLC, has filed with the U.S.
Bankruptcy Court for the Eastern District of Tennessee a first
modified disclosure statement and plan of reorganization dated
Aug. 16, 2011.
Under the modified disclosure statement, the Debtor's assets will
be used to continue the Debtor's business. Based on the Debtor's
best estimates of the future economy of the property building,
rental and sales industry, it is anticipated that the Debtor will
produce estimated monthly revenues of approximately $110,000.
The Debtor's Plan, if accepted, would result in full payment of
all allowed administrative, priority, and secured claims along
with 100% payments to the allowed claims of the unsecured Class
of creditors of their principal balance.
The Debtor's reorganization plan lists seven classes of claims,
only two of which are listed as impaired - Class VI (Unsecured
Non-Priority Claims) and Class VII (Insider Claims). The claims
against the Debtor will be treated as:
A. Class I Administration Claims - All allowed Administrative
Expenses will be paid in full in cash by the Debtor on the
later of (a) the date that such Claim is allowed or (b) on
the Effective Date of Confirmation. The Debtor will also
pay U.S. Trustee Fees on or before the Effective Date.
All trade payables and other administrative expense
incurred by the Debtor postpetition for normal, reasonable
and necessary operating expenses will be paid by the
Debtor on or before the effective date of the Plan.
B. Class II Priority Payments - Deposits by individuals will
be handled according to the terms and conditions of the
individual Rental Agreement. Also, taxes owed to
governmental units will be paid beginning on the Effective
Date.
C. Class III Modified Secured Claims - The new terms of
payment will be that the Bank loans will be paid at the
interest rate of 5.25% fixed for a period of five years.
The loan will adjust based on an indexing factor of prime
rate plus 1.5% each year after the first five years. The
loan will mature in 10 years.
In addition to the change in the terms/monthly payment
amount, the Debtor will incorporate partial release
requirements because several Banks have more than one
piece of property financed in one loan. Upon the sale of
a piece of property to a bona fide purchaser, the Bank
will execute and deliver from time to time when requested
partial releases of the lien of the deed of trust as to
the parcel sold.
D. Class IV Unmodified Secured Claim of Regions Bank - The
$201,226.36 secured claim of the Regions Bank will be
paid over a 30-year period to mature on Apr. 1, 2037,
with interest at 4.125% with monthly amortization of
$1,043.24.
E. Class V Executory Contracts - The Debtor has approximately
150 Rental Agreements. Each of the Rental Agreements in
place on the Effective Date of the Plan will be assumed by
the Debtor according to the terms and conditions of each
individual Rental Agreement or in accordance with any
Court order or confirmation of Debtor's Plan.
F. Class VI Unsecured Non-Priority Claims - This class
consists of all unsecured, undisputed non-priority claims.
The Debtor will pay $1,171.07 per month, which will be
used to make a pro rata quarterly distribution to all
creditors in this Class. This payment will be made for a
period of 60 months with the first payment beginning on
the Effective Date of the Plan, which represents a 100%
payoff of the principal balance of claims.
G. Class VII Insider Claims - To the extent there are insider
claims, this Class would receive no payment until all
other payments are paid in full according to the terms of
the Plan. The ratio of equity ownership in the Debtor
will remain with the present owners.
The compensation for the management of the Debtor to will remain
at the current level until the Plan is completed which is 16.1%
of rental incomes. This is reflective of the market rate for
compensation for persons in East Tennessee performing similar
services and this rate is taken from Bank appraisals of Debtor's
properties. The stockholders of the Debtor will continue to hold
the equity reflected by their stock ownership at the date of the
Petition filing. Since taxable income is passed to the equity
holders, any actual tax liability will be reimbursed by the
Debtor.
The hearing on the adequacy of the Disclosure Statement is
scheduled on Sept. 20, 2011, at 09:00 A.M.
A copy of the first modified disclosure statement is available at:
http://bankrupt.com/misc/PHILLIPS_disclosure_modified.pdf
TriSummit Say Disclosure Statement Inadequate
TriSummit Bank tells the Court that the Debtor fails to give any
information about how it calculates the various values of the
properties it lists as assets, whether on the petition date or
currently. The Debtor states in its footnote merely that each
"current market value is based on current appraisal, tax
appraisal, comparable sales, or income approach analysis."
However, no appraisals, tax appraisals, or comparable sales or
income approaches are cited, according to TriSummit Bank.
Despite the modification to the Plan documents, TriSummit submits
that the Debtor still fails to explain its reconciliations on the
amounts of its secured debt. Although the Debtor has paid
TriSummit Bank some of the payments, the Debtor fails to explain
how it calculates the claims at the petition, why those
calculations are less than the proofs of claim, why and with what
justification the debtor splits the payments between principal and
interest, why it omits interest, fees, costs, and charges provided
under the loan documents.
TriSummit Bank states that the Debtor's liquidation analysis makes
no sense as there is no basis for the Debtor's assertion that a
Chapter 7 liquidation would result in fire sale prices. The
debtor wrongly compares its plan treatment to what the debtor
believes the properties would bring at foreclosure sales. Unless
a secured creditor were to obtain relief from the automatic stay
for some reason other than lack of equity, a foreclosure sale
would take place only if a Chapter 7 trustee were to abandon the
properties.
TriSummit Bank is represented by:
Edward T. Brading, Esq.
HERNDON, COLEMAN, BRADING & MCKEE
P.O. Box 1160
Johnson City, Tennessee 37605
Tel: (423) 434-4700
U.S. Trustee Say Disclosures Deficient
Samuel K. Crocker, the United States Trustee for Region 8, tells
the Court that the Plan and Disclosure must contain more detail
regarding how the monthly checks to the taxing authorities will be
written to ensure that payments will be applied to all properties
with prepetition delinquencies. If the delinquencies relate to
multiple properties in the city or county and the payments are not
properly designated by property, the taxing authorities may
misapply them by applying them all to one property, to the benefit
of some creditors and detriment of others.
The modified Disclosure Statement, the U.S. Trustee points out,
explains that the "reconciled" principal amounts proposed by the
debtor for the creditors were calculated by "taking the principal
balance due at the time of filing and applying half of all
payments made postpetition to principal and half to interest."
The U.S. Trustee submits that adequate protection payments may
only be applied to the outstanding principal balance of the loan.
Accordingly, the U.S. Trustee insists that the reconciled amounts
will have to be revised to apply the payments accordingly.
The U.S. Trustee is represented by:
Patricia C. Foster, Esq.
800 Market Street, Suite 114
Knoxville, Tennessee 37902
Phone: (865) 545-4324
About Phillips Rental Properties
Piney Flats, Tennessee-based Phillips Rental Properties, LLC,
filed for Chapter 11 bankruptcy protection (Bankr. E.D. Tenn. Case
No. 10-53129) on Dec. 7, 2010. Fred M. Leonard, Esq. --
fredmleonard@earthlink.net -- in Bristol, Tennessee, serves as the
Debtor's bankruptcy counsel. According to its schedules, the
Debtor disclosed $13,499,682 in total assets and $9,650,892 in
total liabilities. No unsecured creditors committee has been
appointed in the case.
PIEDMONT CENTER: John Northen Appointed as Chapter 11 Trustee
-------------------------------------------------------------
Bankruptcy Judge J. Rich Leonard tossed the management of Piedmont
Center Investments, LLC, over allegations of fraud, and appointed
John Northen, Esq., as chapter 11 trustee, at the behest of the
Bankruptcy Administrator.
For the past 12 years, Roger van Santvoord Camp has been a partial
owner and the managing member of the debtor, making him
responsible for all aspects of property management. Mr. Camp was
also the owner and manager of FEC Partners, LLC, which was
established for purposes of opening a bowling alley in a shopping
center owned by the debtor in Mebane, North Carolina.
On Aug. 18, 2011, the Bankruptcy Administrator filed an emergency
motion to appoint a chapter 11 trustee pursuant to 11 U.S.C. Sec.
1104(a)(1) of the Bankruptcy Code. In support of her motion, the
BA asserts that a chapter 11 trustee is necessary because on Aug.
3, 2011, a federal grand jury in the Eastern District of North
Carolina indicted Mr. Camp on 15 felony counts related to bank
fraud, false statements, and identity theft. The allegations in
the indictment are based on Mr. Camp's interactions with four
different financial institutions.
A copy of the Court's Sept. 8, 2011 Order is available at
http://is.gd/ck4MiGfrom Leagle.com.
About Piedmont Center Investments
Raleigh, North Carolina-based Piedmont Center Investments, LLC,
owns, leases, and manages seven shopping centers located in (i)
Graham, Alamance County, North Carolina; (ii) Mebane, Alamance
County, North Carolina; (iii) Pittsboro, Chatham County, North
Carolina; (iv) Gibsonville, Guilford County, North Carolina; (v)
Murfreesboro, Hertford County, North Carolina; (vi) Nashville,
Nash County, North Carolina; and (vii) Roxboro, Person County,
North Carolina.
Manager and part-owner Roger Camp signed a Chapter 11 petition
for Piedmont Center Investments, LLC (Bankr. E.D.N.C. Case No.
11-06178) on Aug. 11, 2011. Trawick H. Stubbs, Jr., Esq., at
Stubbs & Perdue, P.A., in New Bern, North Carolina, serves as
counsel to the Debtor. In its schedules, the Debtor disclosed
$27.2 million in assets and $15.5 million in liabilities.
The Debtor's two primary secured creditors are Business Partners,
LLC, and KeySource Commercial Bank. Counsel for KeySource are
James B. Angell, Esq., and Nicolas C. Brown, Esq. --
jangell@hsfh.com and nbrown@hsfh.com -- at Howard, Stallings, From
& Hutson, P.A.
PROTEONOMIX INC: Sr. Management Meets with Investment Community
---------------------------------------------------------------
Proteonomix, Inc., announced that Michael Cohen, chief executive
officer of Proteonomix and Ian McNiece, the Company's chief
scientific officer met with the team at Gilford Securities, the
Company's Investment Banker, and Aegis Capital. They updated them
on the development of the Company's technology and the Company's
technical position in several different areas of research and
development.
Proteonomix CEO Michael Cohen stated, "Proteonomix is on the cusp
of entering a new phase of its development and well on its way to
becoming a significant force in the biotech world. We are at
present not covered by any analysts in the industry and hope to
gain such coverage in the near future. We anticipate that such
coverage will assist the investing public is recognizing the
achievements of Proteonomix both in bringing our Proteoderm anti-
aging skin care line to the point where marketing can commence, as
well as moving ever closer to commencement of clinical trials for
our StromaCel cardiovascular disease therapy and our UMK-121 liver
treatment."
Ian McNiece, the Proteonomix Chief Scientific Officer and a member
of the Board, noted, "Our Company has made extraordinary progress
on a limited budget both in the realm of product development and
in its working relationship with the academic community. Our
anticipated clinical trial moves ever closer to fruition and the
Company's patent position is remarkable for such an early stage
company."
About Proteonomix
Proteonomix, Inc. (OTC BB: PROT) -- http://www.proteonomix.com/--
is a biotechnology company focused on developing therapeutics
based upon the use of human cells and their derivatives.
The Company's balance sheet at June 30, 2011, showed $3.51 million
in total assets, $6.95 million in total liabilities and a $3.43
million total stockholders' deficit.
As reported in the TCR on April 1, 2011, KBL, LLP, in New York,
expressed substantial doubt about Proteonomix, Inc.'s ability to
continue as a going concern, following the Company's 2010 results.
The independent auditor noted that the Company has sustained
significant operating losses and is currently in default of its
debt instrument and needs to obtain additional financing or
restructure its current obligations.
QUALITY HOME: At Risk of Return to Chapter 11
---------------------------------------------
Bill Rochelle, the columnist for Bloomberg News, reports that
Quality Home Brands Holdings LLC was dealt a downgrade to a 'CCC'
corporate rating from Standard & Poor's in view of "continuing
poor operating performance and potential covenant breach over the
next 12 months."
Mr. Rochelle reports that the Skokie, Illinois-based company
implemented a prepacked Chapter 11 reorganization in January 2010
where unsecured creditors took 7.5% of the stock. In the
bankruptcy, affiliate Generation Brands LLC listed assets of
$520 million and debt of $488 million.
About Quality Home Brands
Quality Home Brands Holdings LLC is a designer, manufacturer,
importer, and marketer of lighting fixtures headquartered in North
Carolina. The company makes, imports and markets lighting
fixtures and ceiling fans under brand names including Feiss,
Royce, Se Gull and Monte Carlo. The products are distributed
through retailers including Lowe's Cos. and Ace Hardware Corp.
Green Cary, North Carolina-based QHB Holdings LLC and its debtor-
affiliates filed for Chapter 11 bankruptcy (Bankr. D. Del. Lead
Case No. 09-14312) on Dec. 4, 2009. Eric Michael Sutty, Esq., and
Jeffrey M. Schlerf, Esq., at Fox Rothschild LLP represent the
Debtors in their restructuring efforts. QHB estimated assets
and debts both ranging from $500 million to $1 billion.
QUALTEQ INC: Grounds for Moving Case Remains a Mystery
------------------------------------------------------
Bill Rochelle, the bankruptcy columnist for Bloomberg News,
reports that grounds for moving the case out of Delaware remain a
mystery because the bank's motion was filed entirely under seal.
Secrecy evidently results from a confidentiality agreement
approved by a U.S. District Court in Chicago in early 2010.
QualTeq filed under Chapter 11 in mid-August along with
affiliates, blaming bankruptcy on negative publicity from court
rulings against the founder of the company.
According to court filings, several creditors obtained judgments
against Pethinaidu Veluchamy, the debtors' founder, followed by
"multiple other creditors" who "obtained multimillion dollar
judgments against the founder and/or his wife."
About QualTeq Inc.
South Plainfield, New Jersey-based QualTeq, Inc., engages in the
design, manufacture, and personalization of plastic cards in the
United States. The company manufactures magnetic, contact, and
dual interface smart cards.
Qualteq Inc. and 17 affiliated companies filed for Chapter 11
bankruptcy protection (Bankr. D. Del. Lead Case No. 11-12572) on
Aug. 14, 2011. Eric Michael Sutty, Esq., and Jeffrey M. Schlerf,
Esq., at Fox Rothschild LLP, serve as local counsel to the
Debtors. K&L Gates LLP is the general bankruptcy counsel.
Scouler & Company is the restructuring advisors. QualTeq
estimated assets of up to $50 million and debts of up to
$100 million as of the Chapter 11 filing.
QUANTUM CORP: Dennis Wolf Resigns from Board of Directors
---------------------------------------------------------
Dennis P. Wolf, a member of the Board of Directors of Quantum
Corporation and chair of the Audit Committee, resigned from the
Board effective Sept. 6, 2011.
About Quantum Corp.
Based in San Jose, California, Quantum Corp. (NYSE:QTM) --
http://www.quantum.com/-- is a storage company specializing in
backup, recovery and archive. Quantum provides a comprehensive,
integrated range of disk, tape, and software solutions supported
by a world-class sales and service organization.
The Company's balance sheet at June 30, 2011, showed
$414.89 million in total assets, $472.34 million in total
liabilities, and a $57.45 million stockholders' deficit.
* * *
In January 2011, Moody's Investors Service upgraded Quantum
Corporation's Corporate Family and Probability of Default ratings
to B2 from B3 and revised the ratings on the senior secured debt
obligations to Ba3 from B1. The rating outlook is positive. The
upgrade of the CFR to B2 reflects Quantum's improved operating
performance, which stems from strong customer adoption and growth
of its higher margin branded disk-based systems and software
products, which Moody's expects to continue in FY12.
In March 2011, Standard & Poor's Ratings Services raised its
corporate credit rating on storage manufacturer Quantum Corp. to
'B' from 'B-'. The outlook is stable. "The upgrade reflects that
the company has posted four sequential quarters of sustained
EBITDA generation, despite ongoing declines in its core tape
business and the absence of an EMC licensing arrangement," said
Standard & Poor's credit analyst Lucy Patricola. In addition,
debt/EBITDA has been stable for the last four quarters at about 4x
and reduced from 2009 levels, primarily reflecting application of
free cash flow to debt reduction.
RADLAX GATEWAY: High Court Ruling Could Clarify Credit Bid Issue
----------------------------------------------------------------
Stephen J. Lubben at New York Times' DealBook reports that the
Supreme Court probably will not agree to hear the appeal in RadLAX
Gateway Hotel, LLC v. Amalgamated Bank, but it should. And not
for the reasons the debtors argue in their petition to the court.
According to the report, the case involves the right of a secured
creditor -- in this case Amalgamated Bank -- to "credit bid" its
claim in the auction sale of a debtor's property when the sale is
part of the debtor's Chapter 11 bankruptcy plan.
Mr. Lubben says, for example, imagine a bankrupt company with
property worth $100 and a secured loan from a bank of $125. If
the debtor's plan calls for the sale of the property, to what
extent can the bank forgive part of its claim, in place of paying
cash, to acquire the property?
According to Mr. Lubben, if the sale happens pre-plan under
Section 363 of the Bankruptcy Code is clear that a secured lender
has the right to credit bid. Readers may recall that this was the
right that the Indiana pension funds wanted to exercise in the
Chrysler 363 sale; problem was the funds did not have a
controlling stake in the secured debt, notes the report.
But if the sale occurs under a plan, the Bankruptcy Code is a bit
unclear on this point and that has split the Circuit Courts of
Appeal. The problem is rooted in the language of Section 1129(b),
which provides that if a secured creditor objects to the plan, the
debtor must provide the creditor with one of three treatments:
-- Payment of the present value of the secured claim.
-- Payment of the "indubitable equivalent" of the secured claim.
-- Sale of the property subject to the creditors' right to
credit bid.
The report says only the last is expressly subject to the
creditors' right to credit bid, and the problem develops when the
debtor instead proceeds under the "indubitable equivalent" test.
About RadLAX Gateway Hotel
Oak Brook, Illinois-based RadLAX Gateway Hotel, LLC, operates a
hotel. The Company and its affiliates filed for Chapter 11
bankruptcy (Bankr. N.D. Ill. Case Nos. 09-30047 - 09-30032) on
Aug. 17, 2009. David M. Neff, Esq., at Perkins Coie LLP
represents the Debtors in their restructuring efforts. RadLAX
estimated $50 million to $100
million in assets and up to $500 million in debts.
RASER TECHNOLOGIES: Sues UTC, Pratt & Whitney for Fraud
-------------------------------------------------------
Bill Rochelle, the bankruptcy columnist for Bloomberg News,
reports that Raser Technologies Inc., which confirmed a Chapter 11
plan on Aug. 30, filed a fraud lawsuit against UTC Power Corp. and
its owner, Pratt & Whitney Power Systems Inc.
According to the report, UTC made misrepresentations by assuring
Raser that 50 of its PureCycle units could be combined into a
10-megawatt geothermal power-generation plant, according to the
complaint filed in federal court in Wilmington, Delaware.
The report relates that according to the complaint, after
Hartford, Connecticut-based Pratt & Whitney took over UTC, a Pratt
& Whitney executive called the idea of combining small PureCycle
units into a commercial-grade generation facility "nuts,"
according to the complaint. The executive was quoted in the
complaint as saying the Raser plant was a "joke."
The lawsuit is "frivolous and without merit" and based on "false
allegations," Pratt & Whitney said in an e-mailed statement. The
complaint seeks unspecified damages based on claims including
fraud, negligent misrepresentation and breach of contract.
Mr. Rochelle notes that the lawsuit represents a principal source
of recovery for unsecured creditors. The plan gave them nothing
aside from interests in a litigation trust in return for $65.1
million in claims.
The lawsuit is Raser Technologies Inc. v. UTC Power Corp.,
11-00768, U.S. District Court, District of Delaware (Wilmington).
About Raser Technologies
Raser Technologies Inc. (NYSE: RZ) is a renewable energy company
focusing on geothermal power development. The Company has one
operating plant in Utah and another eight early and development
stage projects in Utah, New Mexico, Nevada and Oregon. The
Company invested $120 million in Thermo No. 1, its sole operating
plant, which is near Beaver, Utah, and has a power generation
capacity of 10 megawatts. The City of Anaheim, California, agreed
in 2008 to buy the generated electricity for 20 years.
Provo, Utah-based Raser Technologies, also known as Wasatch Web
Advisors, Inc., filed for Chapter 11 protection (Bankr. D. Del.
Case No. 11-11315) on April 29, 2011. Other affiliates filed for
separate Chapter 11 protection on April 29, 2011, (Bankr. D. Del.
Case Nos. 11-11319 to 11-11350). Peter S. Partee, Sr., Esq., and
Richard P. Norton, Esq., at Hunton & Williams LLP, represent the
Debtors in their restructuring efforts. The Debtors' local
counsel is Bayard, P.A. Sichenzia Ross Friedman Ference LLP
serves as the Debtors' corporate counsel. The Debtors' financial
advisor is Canaccord Genuity.
A three-member official committee of unsecured creditors was
formed in the Chapter 11 case. Foley & Lardner LLP represents the
Committee. The Committee also tapped Womble Carlyle Sandridge &
Rice, PLLC, as co-counsel, BDO Consulting, a division of BDO USA,
LLP, as its financial advisor and accountant; and BDO Capital
Advisors, LLC its investment banker.
The Company reported a net loss of $101.80 million on
$4.25 million of revenue for the fiscal year ended Dec. 31, 2010,
compared with a net loss of $20.90 million on $2.19 million of
revenue during the prior year.
The Company's balance sheet at Dec. 31, 2010, showed
$41.84 million in total assets, $107.78 million in total
liabilities, $5.00 million of Series A-1 cumulative convertible
preferred stock, and a stockholders' deficit of $70.94 million.
RCC NORTH: Proceeding on U.S. Bank Plan Rendered Moot
-----------------------------------------------------
According to a docket entry, the proceeding with respect to the
confirmation of U.S. Bank, N.A.'s Plan of Reorganization has been
vacated as the matter has been rendered moot.
To recall, debtor RCC North, LLC, asked the U.S. Bankruptcy Court
for the District of Arizona to deny confirmation of the US Bank
Plan of Reorganization dated March 10, 2010. The Plan was filed
by U.S. Bank, N.A., as trustee for the Registered Holders of
Merrill Lynch Mortgage Trust 2006-C1, Commercial Mortgage Pass-
Through Certificates, Series 2006-C1.
As previously reported by the Troubled Company Reporter, the US
Bank Plan proposes, among other things, to transfer to U.S. Bank
title to any personal property collateral for its loan including
cash collateral. The Bank will be required to pay allowed
unsecured claims in full from its cash collateral after the plan
takes effect.
The Court had set a continued status hearing regarding US Bank's
competing plan for Aug. 31, 2011 at 11:30 a.m.
About RCC North LLC
Scottsdale, Arizona-based RCC North LLC owns and operates two
Class A office buildings and the related corporate campuses known
as Phase I and Phase II of the Raintree Corporate Center located
north of the northeast corner of Loop 101 (Pima Freeway) and
Raintree Drive, at 15333 North Pima Road and 15111 North Pima
Road, respectively, in Scottsdale, Arizona.
The Company filed for Chapter 11 bankruptcy protection (Bankr. D.
Ariz. Case No. 10-11078) on Apr. 15, 2010. John J. Hebert, Esq.,
Mark W. Roth, Esq., and Philip R. Rudd, Esq. at Polsinelli
Shughart PC represent the Debtor in its restructuring effort. The
Company estimated its assets and debts at $50 million to
$100 million in its Chapter 11 petition.
READER'S DIGEST: Moody's Cuts Corporate to 'B3'; Outlook Negative
-----------------------------------------------------------------
Moody's Investors Service downgraded Reader's Digest Association
Inc. Corporate Family rating to B3 from B1 and downgraded the
Senior Secured Note to B3 from B1. The outlook has changed from
stable to negative. The Senior Credit Facility, new Senor Secured
Term Loan, and Unsecured Term Loan are not rated. The downgrade
reflects weaker than expected results, a weakened liquidity
position, and the issuance of additional debt that matures in 2013
and 2014.
A summary of the ratings actions are:
Issuer: Reader's Digest Association, Inc.
Corporate Family Rating, Downgraded to B3 (from B1)
Probability of Default Rating, Downgraded to B3 (from B1)
Senior Secured Note due February 2017, Downgraded to B3 (from B1)
(LGD-4 57 %)
RATINGS RATIONALE
RDA's B3 rating reflect the weak revenue and earnings performance
for the 1st half of half of 2011, the corresponding increase in
leverage, the decline in cash balance from $169 million at the end
of 2010 to $63 million as of June 30th, 2011, the drawdown of the
remaining revolver facility post quarter end, and the issuance of
new debt that matures in 2013 and 2014. Moody's notes that revenue
declined in each of its divisions over the past six month period
caused by lower response rates to its marketing campaigns in
international markets, weaker ad revenue at its Everyday with
Rachael Ray magazine, and the discontinuance of a fitness product
that caused its Lifestyle & Entertainment division to report an
operating loss for the six month period. The decline in cash
balance is a concern as $43 million was used to buy back stock in
February 2011 under the previous Chief Executive Officer. RDA is
also constrained by negative secular trends in many of its
business lines and its high degree of sensitivity to economic
conditions. The company's results are largely determined by the
upcoming 4th quarter which will prove challenging in the current
economic environment. New products will need to be launched to
replace its prior fitness product, progress will be needed to
improve results at its Everyday with Rachael Ray publication, and
customer response rates at its direct marketing division will need
to improve. Its direct marketing division will be challenged to
update its product offerings away from its traditional focus on
books, music and videos. The company does derive strength from it
its international diverse operations, large customer base and its
flagship brand name which could drive additional sponsorship
opportunities that could potentially mitigate some of weakness in
other divisions. Additional positive support could also be
achieved from future asset sales which could help to reduce debt
and increase liquidity going forward.
On August 12, 2011, RDA privately placed $45 million of new
Secured Term Loans that matures November 2013 which is pari passu
with the Senior Secured Notes and the Senior Credit Facility.
However, the Secured Term loan and the Senior Credit Facilities
are Priority Payment Lien Obligations that provide for first out
priority in a default scenario. The Secured Term loan also contain
mandatory prepayment provisions in the case of certain asset sales
and has similar covenants and limitations as the Senior Credit
Facility. In addition, it restricts their ability to replace or
refinance the Senior Credit Facility that matures in February 2013
prior to repaying the Secured Term Loan in full. At the same time,
$10 million of unsecured term loan was issued that matures in May
2014 and contain mandatory prepayment provision in the case of
certain asset sales. The company also drew the remaining amount
available under its $50 million revolver despite rather limited
financial cushion with its covenants that step down by 25bps at
December 31, 2011 and March 31, 2012 for both the Senior Credit
Facility and the new Senior Secured Note. While the new issue and
drawn down of the revolver provides added liquidity in the near
term, it increases that amount of debt that is needed to be repaid
or refinanced in 2013 and 2014.
Rating Outlook
The outlook has been changed to negative given the recent
operating trends and the challenges of improving results in a
difficult global economic environment. The limited cushion in its
financial covenants and the increase in debt that matures in 2013
is also a factor in the rating outlook. While cash could be used
to repay the revolver to avoid breaching covenants, it would limit
access to the revolver going forward which is a concern given the
seasonality of working capital and the large cash amounts needed
to run a diversified international operation.
What Could Change the Rating UP?
An upgrade is not likely in the near term given the recent
downgrade. Improved financial performance that reduced leverage
below 5x (including Moody's standard adjustments) on a sustainable
basis with adequate liquidity and no near term maturities could
change the outlook to stable. An asset sale and the use of
proceeds to repay near term debt with stabilized operating
performance, could also be a source of positive rating pressure.
What Could Change the Rating Down?
Leverage above 6.5x would likely trigger a further downgrade or a
failure to make progress improving results to position the company
to satisfactory address its 2013 maturities would lead to a
downgrade.
Reader's Digest's ratings were assigned by evaluating factors that
Moody's considers relevant to the credit profile of the issuer,
such as the company's (i) business risk and competitive position
compared with others within the industry; (ii) capital structure
and financial risk; (iii) projected performance over the near to
intermediate term; and (iv) management's track record and
tolerance for risk. Moody's compared these attributes against
other issuers both within and outside Reader's Digest's core
industry and believes Reader's Digest's ratings are comparable to
those of other issuers with similar credit risk. Other
methodologies used include Loss Given Default for Speculative-
Grade Non-Financial Companies in the U.S., Canada and EMEA
published in June 2009.
REALOGY CORP: Bank Debt Trades at 10% Off in Secondary Market
-------------------------------------------------------------
Participations in a syndicated loan under which Realogy Corp. is a
borrower traded in the secondary market at 89.90 cents-on-the-
dollar during the week ended Friday, Sept. 9, 2011, an increase of
7.65 percentage points from the previous week according to data
compiled by Loan Pricing Corp. and reported in The Wall Street
Journal. The Company pays 300 basis points above LIBOR to borrow
under the facility. The bank loan matures on Sept. 30, 2013, and
carries Moody's B1 rating and Standard & Poor's B- rating. The
loan is one of the biggest gainers and losers among 79 widely
quoted syndicated loans with five or more bids in secondary
trading for the week ended Friday.
About Realogy Corp.
Realogy Corp. -- http://www.realogy.com/-- a global provider of
real estate and relocation services with a diversified business
model that includes real estate franchising, brokerage, relocation
and title services. Realogy's world-renowned brands and business
units include Better Homes and Gardens Real Estate, CENTURY 21,
Coldwell Banker, Coldwell Banker Commercial, The Corcoran Group,
ERA, Sotheby's International Realty, NRT LLC, Cartus and Title
Resource Group. Collectively, Realogy's franchise systems have
around 15,000 offices and 270,000 sales associates doing business
in 92 countries around the world.
Headquartered in Parsippany, N.J., Realogy is owned by affiliates
of Apollo Management, L.P., a leading private equity and capital
markets investor. Realogy fully supports the principles of the
Fair Housing Act.
Realogy Corp. filed with the U.S. Securities and Exchange
Commission its quarterly report on Form 10-Q, reporting a net loss
of $21 million on $1.18 billion of net revenues for the three
months ended June 30, 2011, compared with net income of $223
million on $1.25 billion of net revenues for the same period
during the prior year.
The Company also reported a net loss of $258 million on $2.01
billion of net revenues for the six months ended June 30, 2011,
compared with net income of $26 million on $2.07 billion of net
revenues for the same period a year ago.
The Company's balance sheet at June 30, 2011, showed $7.98 billion
in total assets, $9.29 billion in total liabilities, and a $1.31
billion total deficit.
Realogy has 'Caa2' corporate family rating and 'Caa3' probability
of default rating, with positive outlook, from Moody's. The
rating outlook is positive. Moody's said in January 2011 that the
'Caa2' CFR and 'Caa3' PDR reflects very high leverage, negative
free cash flow and uncertainty regarding the timing and strength
of a recovery of the residential housing market in the U.S.
Moody's expects Debt to EBITDA of about 14 times for the 2010
calendar year. Despite the recently completed and proposed
improvements to the debt maturity profile, the Caa2 CFR continues
to reflect Moody's view that current debt levels are unsustainable
and that a substantial reduction in debt levels will be required
to stabilize the capital structure.
SBARRO INC: Court Approves Key Employee Incentive Plan
------------------------------------------------------
BankruptcyData.com reports that the U.S. Bankruptcy Court approved
Sbarro's motion to implement a key employee incentive plan (KEIP),
under which total payments can range from $585,000 to $975,000 per
measurement period - for a total aggregate cost of $1.17 million
to $1.95 million.
About Sbarro Inc.
The Sbarro family started its business after moving to Brooklyn,
New York, from Naples, Italy, in 1956. Today Sbarro is a leading,
global Italian quick service restaurant concept with approximately
5,170 employees, 1,045 restaurants throughout 42 countries, and
annual revenues in excess of $300 million.
Sbarro Inc. sought bankruptcy protection under Chapter 11 (Bankr.
S.D.N.Y. Lead Case No. 11-11527) to eliminate about $200 million
in debt. The Debtor disclosed $51,537,899 in assets and
$460,975,646 in liabilities as of the Chapter 11 filing.
Sbarro said it has reached an agreement with all of its second-
lien secured lenders and approximately 70% of its senior
noteholders on the terms of a reorganization plan that will
eliminate more than half of the Company's total indebtedness.
Edward Sassower, Esq., and Nicole Greenblatt, Esq., at Kirkland &
Ellis, LLP, serve as the Debtors' general bankruptcy counsel.
Rothschild, Inc., is the Debtors' investment banker and financial
advisor. PriceWaterhouseCoopers LLP is the Debtors' bankruptcy
consultants. Marotta Gund Budd & Dzera, LLC, is the Debtors'
special financial advisor. Curtis, Mallet-Prevost, Colt & Mosle
LLP serves as the Debtors' conflicts counsel. Epiq Bankruptcy
Solutions, LLC, is the Debtors' claims agent. Sard Verbinnen & Co
is the Debtors' communications advisor.
SCIENTIFIC GAMES: S&P Keeps 'BB' Corporate Credit Rating
--------------------------------------------------------
Standard & Poor's Ratings Services assigned its issue-level rating
to Scientific Games International's new $803 million senior
secured credit facilities. "We assigned the credit facilities our
'BBB-' issue-level rating (two notches higher than our 'BB'
corporate credit rating on the company) with a recovery rating of
'1', indicating our expectation for very high (90% to 100%)
recovery for lenders in the event of a payment default. The senior
secured credit facilities comprise a $247 million revolving credit
facility and a $555.8 million term loan both due June 30, 2015,"
S&P said.
"The transaction does not change our 'BB' corporate credit rating
and negative outlook on the parent company, Scientific Games
Corp.," S&P stated
"The 'BB' corporate credit rating on Scientific Games Corp.
reflects our assessment of the company's financial risk profile as
aggressive, given the company's high debt leverage and substantial
acquisition activity and investments through joint ventures," said
Standard & Poor's credit analyst Melissa Long.
"The rating also reflects our assessment of Scientific Games'
business risk profile as fair, reflecting the highly competitive
market conditions in the lottery industry for contract renewals
and for new contracts, which often result in pricing pressure, the
mature nature and capital intensity of the online lottery industry
and the company's limited business diversity. Offsetting factors
are Scientific Games' leadership position in the instant ticket
lottery segment of the gaming industry, a diversified customer
base, and substantial recurring revenue and cash flow, given long-
term contracts with renewal options that are typically exercised,"
S&P related.
SENTINEL MANAGEMENT: BNY Transfers Hurt Creditors, 7th Circ. Told
-----------------------------------------------------------------
Megan Stride at Bankruptcy Law360 reports that an attorney for
Sentinel Management Group Inc.'s Chapter 11 trustee told a Seventh
Circuit panel Thursday that Bank of New York Mellon Corp. breached
its duties and harmed other creditors by accepting fraudulent
transfers from Sentinel.
According to Law360, Catherine Steege of Jenner & Block LLP argued
on behalf of trustee Frederick J. Grede in his bid to revive his
Illinois suit against BNY Mellon seeking damages of $550 million
from the bank, which the trustee claims improperly allowed
Sentinel to mix customers' assets with its own holdings.
About Sentinel Management
Based in Northbrook, Illinois, Sentinel Management Group Inc. --
http://www.sentinelmgi.com/-- was a full service firm offering a
variety of security solutions. The Company filed a voluntary
Chapter 11 petition on Aug. 17, 2007 (Bankr. N.D. Ill. Case No.
07-14987). Ronald Barliant, Esq., Randall Klein, Esq., and
Kathryn A. Pamenter, Esq., at Goldberg, Kohn, Bell & Black
Rosenbloom & Moritz, Ltd., represent the Debtor. Lawyers at
Quinn, Emanuel Urquhart Oliver & Hedges, LLP, represent the
Official Committee of Unsecured Creditors. When the Debtor sought
bankruptcy protection, it estimated assets and debts of more than
$100 million.
On Aug. 28, 2007, the Court approved Frederick Grede as the
Debtor's Chapter 11 Trustee. Marc I. Fenton, Esq., at DLA Piper
US LLP, and Vincent E. Lazar, Esq, at Jenner & Block LLP,
represent the Chapter 11 Trustee.
The Court confirmed a plan of liquidation for Sentinel on
Dec. 15, 2008, and Mr. Grede is managing the liquidation.
SHUR-VALU STAMPS: Dist. Ct. to Hear Avoidance Suit v. Mills et al.
------------------------------------------------------------------
The avoidance action filed by M. Randy Rice, the Chapter 7 Trustee
for Shur-Value Stamps, Inc., against various defendants will be
heard in district court after Judge Brian S. Miller of the U.S.
District Court for the Eastern District of Arkansas granted the
request of defendants David Hendrix, Bob Hudson, John Miller,
Larry Cranford, Billy Dickerson, Kevin Doucet, Tandy Key, Dwight
Sawyer, Brett Wright, and John Mills for withdrawal of the
reference of the adversary proceeding and to transfer the case to
the District Court. M. Randy Rice, Trustee for Shur-Valu Stamps,
Inc. v. John Mills et al., Adv. Proc. No. 4:11-ap-01151 (Bankr.
E.D. Ark.), alleges that defendants fraudulently transferred
assets and that those transfers must be avoided. The District
Court said the action is legal in nature and the parties have a
right to a jury trial. Further, none of the defendants consent to
have the jury trial conducted in the bankruptcy court.
The District Court also held that the defendants' motions to
abstain will be held in abeyance pending further consideration.
A copy of Judge Miller's Sept. 7, 2011 Order is available at
http://is.gd/zQY3gBfrom Leagle.com.
Shur-Value Stamps, Inc., filed a voluntary Chapter 11 petition
(Bankr. E.D. Ark. Case No. 09-13183) on May 5, 2009. The case was
converted to a Chapter 7 liquidation on Aug. 13, 2009, and M.
Randy Rice was appointed as the trustee.
SIGNATURE STYLES: Judge Clears to Sell Assets to Patriarch
----------------------------------------------------------
Dow Jones' DBR Small Cap reports that Signature Styles LLC won
permission to transfer its assets out of bankruptcy to current
owner and private-equity firm Patriarch Partners in exchange for a
large chunk of debt and a small sliver of cash.
Signature Styles did not receive any qualified competing bids to
acquire the Company's assets. Accordingly, Signature Styles
sought court approval to complete the asset sale contemplated in
the stalking horse asset purchase agreement with Artemiss, LLC.
Artemiss is an affiliate of private equity firm Patriarch
Partners, which owned and was the secured lender to Signature
Styles before it filed for bankruptcy in June of this year.
The buyer will assume specified debt, including $30 million on a
term loan and revolving credit. The buyer will also honor some
customer obligations. The bankruptcy judge gave the official
creditors' committee authority to search for a buyer with a better
offer by using confidential financial information. The committee
had opposed the proposed sale process, saying it was "half-hearted
window dressing intended to cloak Patriarch's efforts to cleanse
the debtors' balance sheet of unsecured indebtedness with the
appearance of fairness and equity." Originally, the contract with
Patriarch required approval of the sale by Aug. 4.
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.
SOLYNDRA LLC: Over 1,000 Former Employees Now Looking for Jobs
--------------------------------------------------------------
Chapter11Cases.com reports that Solyndra's failure led to over
1,000 layoffs and those employees are now looking for new
employment.
Chapter11Cases.com also reports that the FBI has raided the
offices of solar-panel company Solyndra, days after it declared
bankruptcy and left U.S. taxpayers holding the bag for some
$535 million in federal loans.
About Solyndra LLC
Fremont, California-based Solyndra LLC and an affiliate sought
Chapter 11 bankruptcy protection (Bankr. D. Del. Lead Case No.
11-12799) on Sept. 6, 2011.
Solyndra LLC is at least the third solar company to seek court
protection from creditors since August.
Solyndra LLC owed secured lenders $783.8 million, including
$527.8 million to the U.S. government pursuant to a federal loan
guarantee, and held assets valued at $859 million as of the
Petition date. The U.S. Federal Financing Bank, owned by the U.S.
Treasury Department, is the Company's biggest lender.
Founded in 2005, Solyndra is a U.S. manufacturer of solar
photovoltaic solar power systems specifically designed for large
commercial and industrial rooftops and for certain shaded
agriculture applications. The Company had approximately 968 full
time employees and 211 temporary employees. Solyndra has sold
more than 500,000 of its panels since 2008 and generated
cumulative sales of over $250 million.
In the Chapter 11 cases, the Debtors are pursuing a two-pronged
strategy to effectuate either a sale of their business to a
"turnkey" buyer who may acquire substantially all of Solyndra's
assets or, if the Debtors are unable to identify any such
potential buyers, an orderly liquidation of the Debtors' assets
for the benefit of their creditors.
The Company has tapped Pachulski Stang Ziehl & Jones LLP as legal
adviser
SOLYNDRA LLC: Faces Criminal Probe; FBI Raids Fremont HQ
--------------------------------------------------------
The Wall Street Journal's Thomas Catan and Deborah Solomon report
that people familiar with the matter said Solyndra LLC is the
target of a criminal investigation into whether its executives
knowingly misled the government to secure more than $500 million
in loan guarantees.
The Journal reports agents from the Federal Bureau of
Investigation on Thursday raided the company's headquarters in
Fremont, Calif., carting away documents and computer equipment as
part of the previously undisclosed federal probe. The raids were
conducted at the behest of the Department of Energy's inspector
general, and agents from that office took part, officials said.
The report says the raids jolted Washington, where Republicans had
this week criticized the White House's support for the financially
stricken company. Some Democratic lawmakers also called for
company executives to answer questions before Congress.
The Journal relates Solyndra spokesman David Miller called the
raid a "total surprise" and said he didn't know what the FBI was
looking for. "We are cooperating and giving them access to
whatever they want," he said.
The Journal says Solyndra CEO Brian Harrison declined to comment
through Mr. Miller.
About Solyndra LLC
Fremont, California-based Solyndra LLC and an affiliate sought
Chapter 11 bankruptcy protection (Bankr. D. Del. Lead Case No.
11-12799) on Sept. 6, 2011. It is at least the third solar
company to seek court protection from creditors since August 2011.
Solyndra LLC owed secured lenders $783.8 million, including
$527.8 million to the U.S. government pursuant to a federal loan
guarantee, and held assets valued at $859 million as of the
Petition date. The U.S. Federal Financing Bank, owned by the U.S.
Treasury Department, is the Company's biggest lender.
Founded in 2005, Solyndra is a U.S. manufacturer of solar
photovoltaic solar power systems specifically designed for large
commercial and industrial rooftops and for certain shaded
agriculture applications. The Company had approximately 968 full
time employees and 211 temporary employees. Solyndra has sold
more than 500,000 of its panels since 2008 and generated
cumulative sales of over $250 million.
In the Chapter 11 cases, the Debtors are pursuing a two-pronged
strategy to effectuate either a sale of their business to a
"turnkey" buyer who may acquire substantially all of Solyndra's
assets or, if the Debtors are unable to identify any such
potential buyers, an orderly liquidation of the Debtors' assets
for the benefit of their creditors.
The Company has tapped Pachulski Stang Ziehl & Jones LLP as legal
adviser.
SOUTH EDGE: Ch. 11 Trustee Wants to Disqualify Bogatz Attorney
--------------------------------------------------------------
Samuel Howard at Bankruptcy Law360 reports that the Chapter 11
trustee overseeing South Edge LLC's reorganization on Tuesday
called for the ouster of the Bogatz & Associates PC attorney
representing one of the developers in the contentious case.
According to Law360, trustee Cynthia Nelson urged the bankruptcy
court to disqualify I. Scott Bogatz from representing Focus South
Group LLC, one of eight builders that joined forces to build a
stricken $1.3 billion project.
About South Edge
Las Vegas, Nevada-based South Edge LLC owns the Inspirada project,
an uncompleted 2,000-acre residential development in Henderson,
Nevada, about 16 miles (26 kilometers) southeast of Las Vegas.
The eight owners of the project include an affiliate of KB Home, a
49% owner. Other owners are Coleman Toll LP with 10.5%, Pardee
Homes Nevada Inc. with 4.9%, Meritage Homes with 3.5%, and Beazer
Homes USA Inc. with 2.6%.
JPMorgan Chase Bank, N.A., Credit Agricole Corporate and
Investment Bank, and Wells Fargo Bank, N.A., filed an involuntary
chapter 11 bankruptcy petition (Bankr. D. Nev. Case No. 10-32968)
on Dec. 9, 2010, against South Edge, LLC. The petitioning
creditors are part of a lender group that provided a $595 million
credit. New York-based JPMorgan serves as lender and agent for
the group. South Edge filed motions to dismiss the involuntary
petition.
The Court conducted a contested trial on Jan. 24 and 25, 2011, and
Feb. 2 and 3, 2011. On Feb. 3, 2011, the Court entered an order
for relief under Chapter 11 of the Bankruptcy Code against the
Debtor and issued an order directing the appointment of a chapter
11 trustee. The United States Trustee appointed Cynthia Nelson to
serve as Chapter 11 trustee on Feb. 20, 2011. The Court approved
the appointment three days later.
South Edge is represented by lawyers at Klee, Tuchin, Bogdanoff
and Stern LLP, and The Schwartz Law Firm, Inc., as legal counsel.
The Chapter 11 trustee also tapped Schwartzer & McPherson Law Firm
as local counsel.
Petitioning creditors JPMorgan Chase Bank, N.A., and Wells Fargo
Bank, N.A., are represented by lawyers at Morrison and Foerster
LLP; and Lewis and Roca LLP. Credit Agricole is represented by
lawyers at Haynes and Boone LLP, and Jolley Urga Wirth Woodbury &
Standish.
SOUTHWEST GEORGIA: Files Chapter 11 Restructuring Plan
------------------------------------------------------
Holly Jessen at Ethanol Producer Magazine reports that Southwest
Georgia Ethanol LLC has filed a restructuring plan in U.S.
Bankruptcy Court and a Sept. 27, 2011, deadline has been set for
filing written objection to the plan.
According to the report, the 100 MMgy ethanol plant in Camilla,
Ga., has been operating as a debtor-in-possession since filing for
Chapter 11 bankruptcy protection in February. The ethanol plant
is a wholly-owned subsidiary of First United Ethanol LLC, which
did not file for Chapter 11. FUEL holds Class A member interest
in and owns all of the outstanding equity in the debtor, according
to court documents. CT Corporation Staffing holds Class B member
interest but no ownership interest.
The report says an estimated $107 million is owed to the pre-
petition senior secured lenders. If the restructuring plan is
approved, those lenders will receive new Class B equity and new
preferred equity, adding up to a 97 percent return on their
investment. FUEL would receive new Class A equity and it would be
"very unlikely" that the company would "recognize any value from
its equity interest in the reorganized debtor," court documents
said.
The report relates that other creditors will receive far less
under this plan. The bondholders, owed an estimated $8.7 million,
and Fagen Inc., which is owed about $4.2 million, would each
receive about a 3 percent return. The company entered into a
design-build contract with Fagen in 2006, for a total price of
$125 million, subject to further adjustment depending on timing,
increase in the cost of materials and other factors.
If the plan is not approved, the Chapter 11 case may be converted
to a Chapter 7 bankruptcy, or liquidation, the company said in
court documents. It further warned that distributions to
creditors would be delayed significantly and it would likely mean
smaller recovery to creditors. "The plan was developed over
several months and is the product of extensive, arm's-length
negotiations among the debtor, the agents, and holders of a
majority in amount of the senior secured lender claims," the
company said. "The debtor and the agents believe that approval of
the plan presents the best chance for the debtor's successful
emergence from Chapter 11."
If the plan is approved, all members of the board of managers of
the debtor will resign as of the plan's effective date. The new
Class A units, given to FUEL, would collectively have 75 percent
of all voting rights and the new Class B units, which would belong
to the senior secured lenders, 25 percent of all voting rights.
In addition, all individuals serving as executive officers and
managers plus some or all of the senior management employees will
retain their jobs.
Volatility in commodity prices for corn, natural gas and ethanol
contributed to the company's decision to apply for Chapter 11
Bankruptcy, according to court documents. In 2010 the ethanol
plant hired a third party to help it identify areas for improving
operational effectiveness. The company also worked through Morgan
Keegan, its financial advisor and investment banker, but after
contacting about 30 parties was unsuccessful in identifying a
potential buyer. As of Aug. 1, Morgan Keegan put the enterprise
value of the reorganized debtor at $103 to $108 million, the
report says.
About Southwest Georgia Ethanol
Southwest Georgia Ethanol LLC, a unit of First United Ethanol Co.,
sought bankruptcy protection (Bankr. M.D. Ga. 11-10145) in Albany,
Georgia, on Feb. 1, 2011.
The Debtor owns and operates an ethanol production facility
located on 267 acres in Mitchell County, Georgia, producing
100 million gallons of ethanol annually. Ethanol production
operations commenced in October 2008. Revenue was $168.9 million
for fiscal year ended Sept. 30, 2010. The Debtor said
profitability and liquidity have been materially reduced by
unfavorable fluctuations in commodity prices for ethanol and corn.
John Michael Levengood, Esq., at McKenna Long & Aldridge LLP, in
Atlanta, Georgia, serves as counsel to the Debtor. Morgan Keegan
& Company, Inc., is the investment banker and financial advisor.
The Debtor's balance sheet showed $164.7 million in assets and
$134.1 million in debt as of Dec. 31, 2010.
Since 2008, at least 11 ethanol-related companies have sought
court protection, including VeraSun Energy Corp., once the second-
largest U.S. ethanol maker; units of Pacific Ethanol Inc.; and
White Energy Holding Co.
SOUTHWEST SPORTS: Bankr. Ct. Abstains From Suit v. Kleem et al.
---------------------------------------------------------------
Bankruptcy Judge Arthur I. Harris abstains from hearing the
lawsuit, Southwest Sports Center, Inc., v. John Kleem, et al.,
Adv. Proc. No. 10-1312 (Bankr. N.D. Ohio), saying the Ohio state
court is the preferred forum to rule on the debtor's remaining
claims. The parties have previously litigated issues related to
the real estate appraisal and sale of the plaintiff-debtor's
commercial property in state court proceedings. The Court
previously dismissed some claims of the adversary complaint based
on lack of subject matter jurisdiction. The defendants seek to
have the Court to abstain from exercising jurisdiction under 28
U.S.C. Sec. 1334(c)(1) because the remaining claims in the
adversary proceeding would more appropriately be heard by an Ohio
state court.
The dispute has had a convoluted history through various state and
federal courts. The litigation began in the Cuyahoga County Court
of Common Pleas in 2007, and the decision in that state court case
was appealed to the state court of appeals. In 2009 a second state
court case was filed, also in the Court of Common Pleas, as well
as the debtor's filing of a Chapter 11 case in Bankruptcy Court.
In 2010, the debtor filed the adversary proceeding.
The Court's decision also pointed to the U.S. Supreme Court ruling
in Stern v. Marshall. A copy of Judge Harris' Sept. 6, 2011
Memorandum of Opinion is available at http://is.gd/UHoFiZfrom
Leagle.com.
Southwest Sports Center Inc. owns commercial real property located
at 975 and 1005 West Bagley Road, Berea, Ohio. The commercial
property is comprised of a golf driving range, a Dairy Queen
Restaurant, a miniature golf course, and a single-family
residence. Southwest Sports Center filed for Chapter 11
bankruptcy (Bankr. N.D. Ohio Case No. 09-21982) on Dec. 20, 2009.
STILLWATER INVESTMENT: Lists $8.05 Million in Assets
----------------------------------------------------
Chris Bagley at the Triangle Business Journal, citing court
filings, reports that Stillwater Investment Group LLC has assets
of $8.05 million, including real estate that it values at $7.26
million, according to its bankruptcy filing. The filing listed 63
lots on 63 acres in the subdivision.
According to the report, the bankruptcy filing is a move that
allows the Company to delay payment on nearly $6 million in debts
while it reorganizes its business, according to the report6,
The Triangle Business Journal relates Stillwater's creditors
include TAB Premium Built Homes, of New Bern, and Thomas Andrew
Bayliss, who is chief executive of TAB and managing member of the
development company. Mr. Bayliss said the builder is in good
financial health and that both companies are continuing with plans
to bring the houses to market.
Stillwater Investment Group LLC is the developer of the waterfront
Stillwater Harbour subdivision near New Bern.
SURETY CAPITAL: 5th Cir. Affirms Atty. Fees in Bank of Texas Suit
-----------------------------------------------------------------
After dismissing a noteholder's complaint for breach of the
Chapter 11 plan, the bankruptcy court awarded attorney's fees. The
noteholder appealed the fees award to the district court, which
affirmed. In a Sept. 8, 2011 decision, the United States Court of
Appeals for the Fifth Circuit also affirmed.
In 1998, Surety Capital Corporation issued notes pursuant to an
indenture agreement. Richard N. Abrams held some of the notes. In
2007, Surety filed a Chapter 11 petition in the United States
Bankruptcy Court for the Northern District of Texas. During the
bankruptcy proceedings, the Bank of Texas became the Indenture
Trustee.
The bankruptcy court entered two orders for Surety to pay the Bank
of Texas funds that the bank would disburse to the noteholders.
The first was for the disbursement of principal on the notes; the
second was for the interest. Because there were insufficient funds
for the interest to be paid in full, the bankruptcy court ordered
that the interest payments be reduced by $350,000. For the
disbursement of principal, the Bank of Texas filed a proof of
claim for its fees and costs as trustee. Mr. Abrams did not
object. For the disbursement of interest, the Bank of Texas
disbursed the funds in accordance with the Indenture Agreement,
which provided the trustee be paid for its fees and costs, and Mr.
Abrams did not object. After all of the funds were disbursed, the
bankruptcy court closed the case.
In 2009, Mr. Abrams brought suit in Texas state court for a
declaratory judgment that the Bank of Texas failed to follow the
terms of the Chapter 11 Plan. His claims were based on breach of
contract, negligent misconduct, and breach of fiduciary duty. The
Bank of Texas removed the case to the bankruptcy court that had
resolved Surety's Chapter 11 petition, after an emergency motion
to reopen the bankruptcy case had been granted. The bankruptcy
court dismissed Mr. Abrams' suit on the basis of res judicata. It
also awarded attorney's fees to the Bank of Texas, holding that
the indenture agreement and Trust Indenture Act permitted the
discretionary award of fees and no statutory exception applied.
Mr. Abrams appealed, arguing that his suit in Texas state court
was to recover unpaid interest on the debt, a kind of suit that
under the Trust Indenture Act would bar an award of fees. He also
that the district court should have denied fees because his suit
was taken in good faith.
The Fifth Circuit noted that the bankruptcy court and the district
court both considered Mr. Abrams' level of involvement in the
bankruptcy case and concluded that his challenge should have been
raised prior to the bankruptcy discharge. Neither court concluded
that this suit was taken in either bad faith or good faith. The
district court's due regard of this issue is evidenced by its
review of the merits of the suit and consideration whether it was
brought in good faith.
The case is RICHARD N. ABRAMS, Appellant, v. BANK OF TEXAS, N.A.,
Appellee, No. 10-11255 (5th Cir.). A copy of the Fifth Circuit's
decision is available at http://is.gd/cA9NhGfrom Leagle.com.
The panel consists of Circuit Judges Jerry E. Smith, Leslie H.
Southwick and Catharina Haynes.
About Surety Capital
Surety Capital Corp. (OTC.SRYP.PK) is the parent company and sole
shareholder of Surety Bank -- http://www.suretybank.com/-- an
independent community bank serving Fort Worth's community
businesses and consumers and targets small and medium sized
businesses in Fort Worth and throughout Tarrant County. As of
Nov. 30, 2007, Surety Bank had assets of roughly $35 million.
Surety Bank has chosen not to participate in the FDIC's
Transaction Account Guarantee Program. Customers of Surety Bank
with noninterest-bearing transaction accounts will continue to be
insured for up to $250,000 under the FDIC's general deposit
insurance rules.
In 1998, Surety operated 13 bank branches and had $240 million in
assets. It sold off its offices to in the late 1990s and early
2000 to get additional funds after a series of financial problems.
In 1997, Surety Bank incurred a $4.1 million loss related to its
accounts receivable factoring operation. Its former president and
its chairman paid fines after pleading guilty for a 1999 diversion
of wrong accounts to cover bad loans and boost earnings.
Surety Capital filed for chapter 11 protection (Bankr. N.D. Texas
Case No. 07-45637) on Dec. 21, 2007. Robert A. Simon, Esq., at
Barlow, Garsek & Simon LLP. When the Debtor filed for bankruptcy,
it listed total assets of $9,001,002 and total debts of
$6,646,387.
SURVIVAL INSURANCE Case Summary & 15 Largest Unsecured Creditors
----------------------------------------------------------------
Debtor: Survival Insurance, Inc.
dba Survival Insurance Brokerage, a California Corporation
dba Survival Insurance Brokerage
2550 N Hollywood Way Ste 120
Burbank, CA 91505
Bankruptcy Case No.: 11-46985
Chapter 11 Petition Date: August 30, 2011
Court: United States Bankruptcy Court
Central District Of California (Los Angeles)
Judge: Sandra R. Klein
Debtor's Counsel: Michael T. Stoller, Esq.
MICHAEL T. STOLLER, APC
23945 Calabasas Rd Ste 104
Calabasas, CA 91302
Tel: (818) 226-4040
Fax: (818) 226-4044
E-mail: mikestoller@earthlink.net
Estimated Assets: $0 to $50,000
Estimated Debts: $1,000,001 to $10,000,000
A list of the Company's 15 largest unsecured creditors filed
together with the petition is available for free at
http://bankrupt.com/misc/cacb11-46985.pdf
The petition was signed by Richard J. Acunto, chief executive
officer.
SWAMI SHREE: Can Use Secured Creditors' Cash Through Oct. 15
------------------------------------------------------------
Bankruptcy Judge David E. Rice signed off on a stipulation and
consent order extending an interim agreement for Swami Shree,
LLC's use of cash collateral and granting adequate protection
through Oct. 15, 2011. S4H Hospitality LLC is the Debtor's senior
creditor and First-Citizens Bank & Trust Company is the junior
creditor. The aggregate amount of Cash Collateral used during the
Specified Period will not exceed $96,915. A copy of the
Stipulation and Consent Order dated Sept. 8 is available at
http://is.gd/j7t3jsfrom Leagle.com.
On Aug. 12, 2011, the Court entered a consent order authorizing
the Debtor to use cash collateral and granting adequate protection
through Sept. 15, 2011.
About Swami Shree
Based in Media, Pennsylvania, Swami Shree, LLC, owns and operates
a La Quinta franchised hotel, containing 70 suites and amenities,
located at 304 Belle Hill Road, in Elkton, Maryland. Swami Shree
filed a Chapter 11 petition (Bankr. D. Md. Case No. 11-25973) on
Aug. 4, 2011. Curtis C. Coon, Esq. -- cccoon@ccclaw.net -- at
Coon & Cole, LLC, serves as the Debtor's bankruptcy counsel. The
Debtor scheduled $338,140 in assets and $4,861,772 in debts. The
petition was signed by Vasudev Patel, managing member.
Attorney for senior lender SS4H Hospitality LLC is Alan M.
Grochal, Esq. -- agrochal@tydingslaw.com -- at Tydings & Rosenberg
LLP, in Baltimore, Maryland.
Attorney for junior lender First-Citizens Bank & Trust Company is
Peter J. Duhig, Esq. -- Peter.duhig@bipc.com -- at Buchanan
Ingersoll & Rooney PC, in Wilmington, Delaware.
TALON THERAPEUTICS: James Flynn Discloses 33.6% Equity Stake
------------------------------------------------------------
In an amended Schedule 13D filing with the U.S. Securities and
Exchange Commission, James E. Flynn and his affiliates disclosed
that as of Aug. 31, 2011, they beneficially own 9,506,868 shares
of common stock of Talon Therapeutics, Inc., representing 33.64%
of the shares outstanding. As previously reported by the TCR on
June 28, 2011, Mr. Flynn, et al., disclosed beneficial ownership
of 9,737,217 shares of common stock or 35.27% equity stake. A
full-text copy of the new filing is available for free at:
http://is.gd/9ZAZYW
About Talon Therapeutics
Formerly known as Hana Biosciences, Inc., Talon Therapeutics Inc.
(TLON.OB.) -- http://www.talontx.com/-- is a biopharmaceutical
company dedicated to developing and commercializing new,
differentiated cancer therapies designed to improve and enable
current standards of care. The company's lead product candidate,
Marqibo, potentially treats acute lymphoblastic leukemia and
lymphomas. The Company has additional pipeline
opportunities some of which, like Marqibo, improve delivery and
enhance the therapeutic benefits of well characterized, proven
chemotherapies and enable high potency dosing without increased
toxicity.
Effective Dec. 1, 2010, Hana Biosciences Inc. changed its name to
Talon Therapeutics Inc. The name change was effected by merging
Talon Therapeutics, Inc., a wholly-owned subsidiary of the
Company, with and into the Company, with the Company as the
surviving corporation in the merger.
The Company's balance sheet at June 30, 2011, showed
$11.58 million in total assets, $38.08 million in total
liabilities, $30.64 million in redeemable convertible preferred
stock, and a $57.14 million total stockholders' deficit.
The Company reported a net loss of $25.98 million for the year
ended Dec. 31, 2010, compared with a net loss of $24.14 million
during the prior year. The Company does not generate any
recurring revenue and will require substantial additional capital
before it will generate cash flow from its operating activities,
if ever. The Company does not currently have sufficient capital
to fund its entire development plan beyond 2011.
As reported by the TCR on April 1, 2011, BDO USA, LLP, in San
Francisco, Calif., expressed substantial doubt about the Company's
ability to continue as a going concern. BDO noted that the
Company suffered recurring losses from operations and has a net
capital deficiency.
THINKFILM INC: Judge Rejects Trustee's Bid to Merge Ch. 11 Cases
----------------------------------------------------------------
Samuel Howard at Bankruptcy Law360 reports that U.S. Bankruptcy
Judge Barry Russell refused Tuesday to consolidate the bankruptcy
cases for film producer David Bergstein's various businesses and
to lump in nondebtor affiliates despite claims from the Chapter 11
trustee that Mr. Bergstein's empire is a "shell game."
Lawyer Jeffrey Garfinkle said Judge Russell rejected the trustee
Ronald Durkin's bid to substantively consolidate the five
bankruptcy cases and 12 nondebtor companies, finding little reason
to give the trustee sweeping control over the debtors as well as
unencumbered affiliates, according to Law360.
About Thinkfilm, et al.
CapCo Group LLC and four other companies controlled by David
Bergstein are part of a wider network of entities that distribute
and finance films. Among the approximately 1,300 films they have
the rights to are "Boondock Saints" and "The Wedding Planner."
Several creditors filed for involuntary Chapter 11 bankruptcy
against the companies on March 17, 2010 -- CT-1 Holdings LLC
(Bankr. C.D. Calif. Case No. 10-19927); CapCo Group, LLC (Bankr.
C.D. Calif. Case No. 10-19929); Capitol Films Development LLC
(Bankr. C.D. Calif. Case No. 10-19938); R2D2, LLC (Bankr. C.D.
Calif. Case No. 10-19924); and ThinkFilm LLC (Bankr. C.D. Calif.
Case No. 10-19912). Judge Barry Russell presides over the cases.
The Petitioners are represented by David L. Neale, Esq., at Levene
Neale Bender Rankin & Brill LLP.
Federal bankruptcy judge Barry Russell formally declared David
Bergstein's ThinkFilm LLC and Capitol Films Development bankrupt
on October 5, 2010.
Mr. Bergstein is being sued for tens of millions of dollars by
nearly 30 creditors -- including advertisers, publicists and the
Writers Guild West. Five Bergstein controlled companies have been
named in the suit.
TELX ACQUISITION: Moody's Assigns 'B3' Corporate Family Rating
--------------------------------------------------------------
Moody's Investors Service has assigned a B3 corporate family
rating (CFR) to Telx Merger Sub, Inc., the financing entity
established to acquire Telx Group, Inc. In addition, Moody's has
assigned a B1 rating to the proposed $340 million senior secured
credit facility, which, in conjunction with an unrated $145
million senior secured notes offering will be used to finance the
private transaction. The outlook is stable. Upon completion of the
transaction, Moody's will withdraw the B2 CFR and associated debt
ratings from Telx Group, Inc.
Moody's has taken these rating actions:
Issuer: Telx Merger Sub, Inc.
-- Corporate Family Rating, Assigned B3
-- Probability of Default Rating, Assigned B3
-- $50 million Senior Secured Revolver due 2016, Assigned B1,
LGD 3-31%
-- $290 million Senior Secured Term Loan due 2017, Assigned B1,
LGD 3-31%
Outlook, Stable
RATINGS RATIONALE
Telx's B3 rating reflects its small scale, near-term negative free
cash flow and high leverage following the proposed leveraged
buyout. These limiting factors are offset by Telx's stable base of
contracted recurring revenues, its strategic real estate holdings
in key communications hubs, the strong industry growth within the
data center market and the inherent operating leverage of the
business model.
The incremental debt load will result in higher cash interest
expense which will reduce Telx's ability to reinvest into the
business, potentially leading to a slowdown in top line growth.
Additionally, the cash cushion amassed from prior debt issuances
($60 million on hand at 6/30/11) will disappear in the
transaction, leaving Telx with a weaker liquidity profile. As
such, further debt issuances or drawings upon the revolver are
likely. Telx's prior B2 rating had assumed that EBITDA growth
during 2011 and 2012 would lead to leverage falling below 6x
(Moody's adjusted Debt/EBITDA). Although near-term revenue growth
will remain strong, the incremental deal-related debt will result
in leverage of over 7x through year-end 2012.
Moody's rates the senior secured term loan and revolving credit
facility B1, two notches above the CFR due to its priority claim
on assets and the loss protection provided by the proposed $145
million unrated senior unsecured notes.
Telx is anticipated to maintain adequate liquidity over the next
12-18 months. Moody's anticipates that internally generated cash
will support the company's base operating and capital expenses,
but that external liquidity will be required for project-related
capital spending. Telx is likely to draw upon its $50 million
revolver to fund any shortfall, although Moody's anticipates that
utilization of the facility will remain below 50%.
The stable outlook reflects Moody's expectation that strong
industry demand will continue to result in revenue growth, higher
space utilization and higher EBITDA over the next 12-18 months.
Moody's could raise Telx's ratings if leverage were to trend below
6x on a sustainable basis amidst stable operations and adequate
liquidity. The ratings could be lowered if liquidity were to
become strained, if industry pricing were to deteriorate due to
competitive pressure or if the company were to increase leverage.
The principal methodology used in rating Telx was the Global
Communications Infrastructure Industry Methodology published in
June 2011. Other methodologies used include Loss Given Default for
Speculative-Grade Non-Financial Companies in the U.S., Canada and
EMEA published in June 2009.
Headquartered in New York, NY, Telx Group is a provider of network
neutral, global interconnection, and co-location services. As of
June 30, 2011, the company operates 15 interconnection and
colocation facilities in multiple regions across the United
States.
TENET HEALTHCARE: Rights Agreement with BNY Expires Sept. 12
------------------------------------------------------------
Tenet Healthcare Corporation, on Sept. 7, 2011, entered into an
amendment to the Section 382 Rights Agreement dated as of Jan. 7,
2011, as amended, between the Company and The Bank of New York
Mellon, as rights agent, to accelerate the final expiration date
of the rights issued thereunder to the close of business on
Sept. 12, 2011. Accordingly, as of the close of business on
Sept. 12, 2011, the rights issued under the Rights Agreement will
expire and no longer be outstanding. A full-text copy of the
Amendment is available for free at http://is.gd/bzERRT
About Tenet Healthcare
Dallas, Texas-based Tenet Healthcare Corporation (NYSE: THC) --
http://www.tenethealth.com/-- is a health care services company
whose subsidiaries and affiliates own and operate acute care
hospitals, ambulatory surgery centers and diagnostic imaging
centers.
The Company's balance sheet at June 30, 2011, showed $8.43 billion
in total assets, $6.54 billion in total liabilities, $16 million
in redeemable noncontrolling interests in equity of consolidated
subsidiaries and $1.87 billion in total equity.
* * *
As reported by the TCR on Aug. 5, 2010, Moody's Investors Service
affirmed its 'B2' corporate family rating for Tenet. The rating
reflects Moody's expectation that the Company will likely see
positive free cash flow for the full year ending Dec. 31,
2010, as operating results continue to improve and litigation
settlement payments end in the third quarter. However, the
ratings also consider the significant headwinds facing the
company, and the sector as a whole, with respect to increasing bad
debt expense, weak volume trends and changes in mix as commercial
volumes decline.
S&P's corporate credit rating on Tenet is 'B' and remains
unchanged. The ratings agency noted that while the Company has
experience recent successes to date of a multiyear turnaround
effort, the Company has a still-weak business risk profile and
high financial leverage.
Fitch Ratings has issued its Recovery Rating review of the U.S.
Healthcare sector. This review includes an analysis of valuation
multiples, EBITDA discounts applied, and detailed recovery
worksheets for issuers with a Fitch Issuer Default Rating of 'B+'
or lower in this sector.
Fitch Ratings has placed Tenet Healthcare Corp.'s ratings on
Rating Watch Positive. Tenet's existing ratings are Issuer
Default Rating 'B-'; Secured bank facility 'BB-/RR1'; Senior
secured notes 'BB-/RR1'; Senior unsecured notes 'B/RR3. The
ratings apply to approximately $4.3 billion of debt outstanding as
of Sept. 30, 2010.
TP INC: Chapter 7 Case Conversion Hearing Continued to Sept. 29
---------------------------------------------------------------
The U.S. Bankruptcy Court for the Eastern District of North
Carolina has continued the hearing on the request made by Algernon
L. Butler, III, appointed trustee of TP Inc., to convert the
Debtor's case to one under Chapter 7 of the Bankruptcy Code to
September 29, 2011 at 2:00 p.m.
An August 25, 2011 hearing was previously set for the requested
case conversion.
The Trustee filed the Chapter 7 Conversion Motion after conducting
an investigation into the assets, liabilities and financial
affairs of the Debtor. In its investigation, the Trustee found
that:
-- the Debtor has no substantial tangible assets other than
its real estate. The Debtor has employees nor any ongoing
business operations other than the rental of its real
estate, the day-to-day management and details of which are
being handled by Treasure Realty, Inc. and Century 21
Action, Inc. which are the property managers employed by
the trustee; and
-- the value of the Debtor's real estate located at 3674
Island Drive in Topsail Beach, the three lots located in
The Sanctuary in Mecklenburg County, the real estate
located on Country Club Road in Hampstead (formerly owned
by HP, Inc. and ordered by the Court to be transferred to
TP, Inc.), exceeds the valid non-avoidable encumbrances
against each respective property and the trustee has taken
steps to market and sell these properties for the benefit
the bankruptcy estate and creditors. The Debtor may also
own certain other underencumbered real estate which might
be liquidated for the benefit of the estate.
About TP, Inc.
Boone, North Carolina-based TP, Inc., is in the business of
property development and currently owns a various tracts of real
estate in and around North Topsail, Topsail Beach, and Surf City,
North Carolina. The Company filed for Chapter 11 protection
(Bankr. E.D.N.C. Case No. 10-01594) on March 1, 2010. David J.
Haidt, Esq., at Ayers, Haidt & Trabucco, P.A., represented
the Debtor. The Debtor tapped Trawick H. Stubbs, Jr., and Stubbs
& Perdue, as counsel. In its schedules, the Debtor disclosed
$13,156,424 in assets and $4,129,049 in liabilities.
Algernon L. Butler, III, is the duly-appointed Chapter 11 trustee
in the case of TP Inc., and is represented by Butler & Butler,
LLP, as counsel.
TRIBUNE CO: Bank Debt Trades at 42% Off in Secondary Market
-----------------------------------------------------------
Participations in a syndicated loan under which Tribune Co. is a
borrower traded in the secondary market at 58.10 cents-on-the-
dollar during the week ended Friday, Sept. 9, 2011, a drop of 1.73
percentage points from the previous week according to data
compiled by Loan Pricing Corp. and reported in The Wall Street
Journal. The Company pays 300 basis points above LIBOR to borrow
under the facility. The bank loan matures on May 17, 2014.
Moody's has withdrawn its rating on the bank loan. The loan is
one of the biggest gainers and losers among 79 widely quoted
syndicated loans with five or more bids in secondary trading for
the week ended Friday.
About Tribune Co.
Headquartered in Chicago, Illinois, Tribune Co. --
http://www.tribune.com/-- is a media company, operating
businesses in publishing, interactive and broadcasting, including
ten daily newspapers and commuter tabloids, 23 television
stations, WGN America, WGN-AM and the Chicago Cubs baseball team.
The Company and 110 of its affiliates filed for Chapter 11
protection (Bankr. D. Del. Lead Case No. 08-13141) on Dec. 8,
2008. The Debtors proposed Sidley Austin LLP as their counsel;
Cole, Schotz, Meisel, Forman & Leonard, PA, as Delaware counsel;
Lazard Ltd. and Alvarez & Marsal North America LLC as financial
advisors; and Epiq Bankruptcy Solutions LLC as claims agent. As
of Dec. 8, 2008, the Debtors have $7,604,195,000 in total assets
and $12,972,541,148 in total debts. Chadbourne & Parke LLP and
Landis Rath LLP serve as co-counsel to the Official Committee of
Unsecured Creditors. AlixPartners LLP is the Committee's
financial advisor. Landis Rath Moelis & Company serves as the
Committee's investment banker. Thomas G. Macauley, Esq., at
Zuckerman Spaeder LLP, in Wilmington, Delaware, represents the
Committee in connection with the lawsuit filed against former
officers and shareholders for the 2007 LBO of Tribune.
Bankruptcy Creditors' Service, Inc., publishes Tribune Bankruptcy
News. The newsletter tracks the chapter 11 proceeding undertaken
by Tribune Company and its various affiliates.
(http://bankrupt.com/newsstand/or 215/945-7000)
TRIDENT PROPERTIES: Case Summary & 2 Largest Unsecured Creditors
----------------------------------------------------------------
Debtor: Trident Properties, LLP
2060 Omro Rd.
Oshkosh, WI 54904
Bankruptcy Case No.: 11-33479
Chapter 11 Petition Date: August 31, 2011
Court: United States Bankruptcy Court
Eastern District of Wisconsin (Milwaukee)
Judge: Susan V. Kelley
Debtor's Counsel: Paul G. Swanson, Esq.
STEINHILBER, SWANSON, MARES, MARONE & MCDERMOTT
107 Church Avenue
P.O. Box 617
Oshkosh, WI 54903-0617
Tel: (920) 426-0456
E-mail: pswanson@oshkoshlawyers.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
A list of the Company's two largest unsecured creditors filed
together with the petition is available for free at
http://bankrupt.com/misc/wieb11-33479.pdf
The petition was signed by Norman D. Mueller, managing member.
UNIGENE LABORATORIES: Appoints T. Odlaug as Independent Director
----------------------------------------------------------------
Unigene Laboratories, Inc., announced the appointment of industry
veteran, Theron (Ted) Odlaug, Ph.D., as a new independent director
to its Board. Dr. Odlaug will also serve as a member of Unigene's
Compensation and Nominating and Governance Committees.
Ashleigh Palmer, president and chief executive officer of Unigene
Laboratories, Inc., stated, "We are very pleased to welcome Ted to
our Board and are very fortunate to be able to attract a seasoned,
successful executive with extensive experience in the
biopharmaceutical industry. We are confident Ted will bring an
invaluable strategic perspective and provide significant
contributions to the success of Unigene."
Dr. Odlaug, commented, "Unigene has established itself as a leader
in the oral delivery and recombinant manufacturing of peptides and
has made tremendous progress over the past year in launching its
new strategy and regaining credibility and confidence in the
market and with its partners. The Company is well positioned to
enter a new era of growth over the next 12-18 months, and I
believe I can play an important role in the continued evolution of
Unigene. I am thrilled to be joining the Board during this
exciting time."
Dr. Odlaug brings to Unigene over 30 years of experience with
significant leadership roles in the biopharmaceutical industry.
Last month, Dr. Odlaug was appointed Executive Chairman and CEO of
Planet Biopharmaceuticals. From 2008 until January of this year,
he was President and CEO of CyDex Pharmaceuticals, Inc., at which
time the company was sold under his leadership to Ligand
Pharmaceuticals, Inc. Prior to CyDex, Dr. Odlaug served as
Managing Partner of EIR Healthcare Advisors, LLC. Prior to that,
he was Executive Vice President and a member of the senior
management committee at Fujisawa Healthcare Inc. until its merger
with Yamanouchi in 2005, which resulted in the formation of
Astellas Pharma. He left Astellas in 2006 after successfully
supporting the U.S. post-merger integration process. During his
tenure at Fujisawa, Dr. Odlaug was responsible for manufacturing,
regulatory and quality assurance, technical services, commercial
compliance, human resources, legal, information technology,
corporate communications and strategic relations.
Odlaug holds Bachelor's and Master's degrees from the University
of Missouri at Kansas City and a Ph.D. in Public Health from the
University of Minnesota.
Mr. Odlaug received an option to purchase 30,000 shares of the
Company's common stock, which option will vest in equal
installments of 1/3 over a period of three years, and such other
compensation in accordance with the Company's director
compensation policies as described in the section "Corporate
Governance-Director Compensation" of the Company's definitive
proxy statement on Schedule 14A filed with the Securities Exchange
Commission on April 21, 2011.
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 June 30, 2011, showed $21.79
million in total assets, $76.33 million in total liabilities and a
$54.53 million total stockholders' deficit.
UNIVISION COMMS: Bank Debt Trades at 14% Off in Secondary Market
----------------------------------------------------------------
Participations in a syndicated loan under which Univision
Communications Inc. is a borrower traded in the secondary market
at 86.21 cents-on-the-dollar during the week ended Friday, Sept.
9, 2011, an increase of 0.58 percentage points from the previous
week according to data compiled by Loan Pricing Corp. and reported
in The Wall Street Journal. The Company pays 425 basis points
above LIBOR to borrow under the facility. The bank loan matures
on March 29, 2017, and carries Moody's B2 rating and Standard &
Poor's B+ rating. The loan is one of the biggest gainers and
losers among 79 widely quoted syndicated loans with five or more
bids in secondary trading for the week ended Friday.
As reported by the Troubled Company Reporter on Jan. 12, 2011,
Standard & Poor's affirmed its ratings on New York City-based
Spanish language TV and radio broadcaster Univision Communications
Inc.'s 8.5% senior unsecured notes due 2021, following the
Company's proposed $315 million add-on to the issue. The add-on
would bring the total dollar amount of the issue to $815 million.
The issue-level rating on this debt remains at 'CCC+ (two notches
lower than the 'B' corporate credit rating on the Company), and
the recovery rating remains at '6', indicating S&P's expectation
of negligible (0% to 10%) recovery for noteholders in the event of
a payment default.
S&P expects Univision to use proceeds from the proposed issuance
to repay the remaining portion of its 9.75%/10.5% senior unsecured
toggle notes due 2015, following the expiration of its current
tender offer for the notes. The Company's current tender offer
for up to $1.005 billion of its toggle notes, which S&P expects it
will meet with proceeds from Grupo Televisa, S.A.B.'s investment,
is set to expire on Jan. 21, 2011.
On Apr. 28, 2011, the TCR related that Moody's assigned a B2
rating to Univision Communications, Inc.'s proposed $600 million
senior secured notes due 2019. Univision plans to utilize the net
proceeds from the note offering to redeem its $545 million senior
secured notes due 2014 (2014 notes) and fund related transaction
expenses. Univision's B3 Corporate Family Rating (CFR), B3
Probability of Default Rating, other debt instrument ratings, SGL-
3 speculative-grade liquidity rating and stable rating outlook are
not affected.
The refinancing improves Univision's maturity profile, reduces
refinancing risk related to its 2014 maturities (approximately
$1.1 billion upon completion of the proposed offering), and will
moderately reduce cash interest expense. Moody's does not expect
the $55 million increase in debt as a result of funding the tender
premium on the 2014 notes to materially alter Univision's current
leverage position or the expected de-leveraging over the next few
years. Moody's had expected in the existing B3 CFR and stable
rating outlook that Univision would refinance the 2014 notes.
On June 16, 2011, the TCR reported that Fitch Ratings affirmed
Univision Communications, Inc.'s Issuer Default Rating (IDR) at
'B'; Senior secured at 'B+/RR3'; and Senior unsecured at
'CCC/RR6'. The Rating Outlook is Stable.
The ratings incorporate Fitch's positive view on the U.S. Hispanic
broadcasting industry, given anticipated continued growth in
number and spending power of the Hispanic demographic, which is
confirmed by U.S. census data. Additionally, Univision benefits
from a premier industry position, with duopoly television and
radio stations in most of the top Hispanic markets, with a
national overlay of broadcast and cable networks. High ratings
and concentrated Hispanic viewer base provide advertisers with an
effective way to reach the large and growing U.S. Hispanic
population. Ratings concerns center on the highly leveraged
capital structure and the significant maturity wall in 2017, as
well as the company's significant exposure to advertising revenue.
Univision, headquartered in New York, is the leading Spanish-
language media company in the United States. Revenue for fiscal
year 2010 was approximately $2.2 billion.
UNO RESTARUANT: Closes Restaurant in Elm Grove
----------------------------------------------
Paul Gores of the Milwaukee Journal Sentinel reports that the
Pizzeria Uno restaurant in Elm Grove, Wisconsin, has closed. The
restaurant notified customers in an email that the location at
15280 W. Blue Mound Road has been shut down, and directed them to
its restaurant in Menomonee Falls.
About Uno Restaurant
Boston, Massachusetts-based Uno Restaurant Holdings Corporation --
http://www.unos.com/-- has 179 company-owned and franchised
full-service Uno Chicago Grill restaurants located in 28 states,
the District of Columbia, Puerto Rico, South Korea, the United
Arab Emirates, Honduras, Kuwait, and Saudi Arabia. The company
also operates a fast casual concept called Uno Due Go(R), a quick
serve concept called Uno Express, and a consumer foods division
which supplies airlines, movie theaters, hotels, airports, travel
plazas, schools and supermarkets with both frozen and refrigerated
private-label foods and branded Uno products.
The Company and 152 affiliates filed for Chapter 11 protection on
Jan. 20, 2010 (Bankr. S.D.N.Y. Lead Case No. 10-10209). The
Company estimated its assets and debts at $100 million to
$500 million as of the Petition Date.
Weil, Gotshal & Manges LLP assisted the Debtors in their
restructuring effort. CRG Partners Group LLC served as the
restructuring advisor. Kurtzman Carson Consultants LLC served as
noticing and claims agent.
As reported by the Troubled Company Reporter on July 27, 2010, Uno
Restaurant emerged from Chapter 11 pursuant to its plan of
reorganization, confirmed by the Bankruptcy Court on July 6.
Pursuant to the Plan, 100% of the Company's $142 million, 10%
Senior Secured Notes, due February 2011, was converted into
substantially all of the equity of the Company, thereby
eliminating $14.2 million in annual interest payments and reducing
total debt from $176.3 million to approximately $40 million.
In connection with the emergence from Chapter 11, the Company
arranged for $55 million of permanent, long-term exit financing
comprised of a $30 million revolving credit facility, due July
2015, provided by long-standing-lender Wells Fargo Capital
Finance, part of Wells Fargo & Company, and $25 million of new
notes, due February 2016, provided by a majority of the new equity
holders. The Exit Facility allowed the Company to repay all
outstanding amounts under its former Debtor in Possession Credit
Facility, implement the provisions of the Plan, pay transaction
costs and provide significant liquidity going forward to fund
working capital needs and the Company's growth and investment
plans.
USAM CALHOUN: Sec. 341 Creditors' Meeting Set for Oct. 11
---------------------------------------------------------
The United States Trustee for the Western District of Texas will
convene a meeting of creditors pursuant to Sec. 341(a) of the
Bankruptcy Code in the Chapter 11 case of USAM Calhoun Land, LLC,
on Oct. 11, 2011, at 2:00 a.m. at Austin Room 118.
The debtor's representative must be present at the meeting to be
questioned under oath by the trustee and by creditors. Creditors
are welcome to attend, but are not required to do so. The meeting
may be continued and concluded at a later date without further
notice. The court, after notice and a hearing, may order that the
United States trustee not convene the meeting if the debtor has
filed a plan for which the debtor solicited acceptances before
filing the case.
Proofs of claim are due in the case by Jan. 9, 2012.
Austin, Texas-based USAM Calhoun Land, LLC, filed for Chapter 11
bankruptcy (Bankr. W.D. Tex. Case No. 11-12232) on Sept. 6, 2011.
Judge Craig A. Gargotta presides over the case. James V.
Hoeffner, Esq., at Graves, Dougherty, Hearon & Moody, P.C., serves
as bankruptcy counsel. In its petition, the Debtor estimated $10
million to $50 million in assets and debts. The petition was
signed by Jack H. Lieberman, president and managing member.
UTEX COMMUNICATIONS: Seeks Relief From Amended Order to File Plan
-----------------------------------------------------------------
On Aug. 30, 2011, UTEX Communications Corp. filed an emergency
motion seeking relief from the U.S. Bankruptcy Court for the
Western District of Texas's Amended Order Concerning Plan and
Disclosure Statement dated Oct. 26, 2010 (Docket No. 170) and the
Court's permission for it to file a Disclosure Statement and Plan
of Reorganization.
In the Amended Order, the Bankruptcy Court denied approval of the
Debtor's Disclosure Statement filed on July 1, 2010, and
prohibited any party from filing a disclosure statement and plan
until matters pending before the Texas Public Utility Commission,
principally in TPUC Docket No. 26381, were decided. In that
matter, UTEX is requesting the approval of a new Interconnection
Agreement ("ICA") between UTEX and AT&T.
The Order extends the Debtor's right to exclusivity until 18
months after the petition date, or Sept. 3, 2011.
The rationale for the plan injunction, as stated in the Order, is
that, until there is a final ruling on TPUC Docket 26381 and
replacement agreement terms are in place, the creditors would
not be able to vote on a plan because the terms of the ICA would
be unknown.
The Award was issued on Jan. 27, 2011. Further, UTEX believes
that the PUC case has sufficiently progressed to allow Debtor to
present a plan of reorganization.
Thus, Debtor says cause now exists for the Court to grant it
relief from the Amended Order because the core provisions of the
ICA have been ruled on and the TPUC held on April 14, 2011, that
there will be no reconsideration of those terms.
UTEX has therefore sought entry of an interim order by the PUC
approving the core terms of the ICA by a pleading filed on
Aug. 17, 2011. AT&T almost immediately filed an opposition to the
request for entry of an interim order. AT&T's goal in opposing
the entry of the interim order, the Debtor avers, is to deprive it
of exclusivity.
UTEX adds that relief from the injunctive provision of the Amended
Order is justified for two reasons:
a. the core elements of the eventual final ruling in Docket 26381
are known and will not be altered;
b. the Debtor can file a disclosure statement which provides
adequate information to allow the creditors to cast their votes
accepting or rejecting the Debtor's plan, and
c. AT&T should not be permitted to deprive UTEX of its exclusivity
rights by delaying and hindering the entry of a final order.
About UTEX Communications
Austin, Texas-based UTEX Communications Corp., dba FeatureGroup
IP, is a Competitive Local Exchange Carrier. The Debtor filed for
Chapter 11 bankruptcy protection on March 3, 2010 (Bankr. W.D.
Texas Case No. 10-10599). Joseph D. Martinec, Esq., and Martinec,
Winn, Vickers & McElroy, P.C., represents the Debtor in its
restructuring effort. The Company estimated assets at
$100 million to $500 million and liabilities at $10 million to
$50 million.
VALENCE TECHNOLOGY: Five Directors Elected at Annual Meeting
------------------------------------------------------------
Valence Technology, Inc., held its 2011 Annual Meeting of
Stockholders on Sept. 1, 2011. At the 2011 Annual Meeting, the
Company's stockholders elected Carl E. Berg, Robert L. Kanode,
Vassilis G. Keramidas, Bert C. Roberts, Jr., and Donn V.
Tognazzini as directors to serve on the Company's Board of
Directors until the 2012 Annual Meeting of Stockholders or until
their successors are duly elected and qualified. At the 2011
Annual Meeting, the stockholders voted to ratify the appointment
of PMB Helin Donovan, LLP, as the Company's independent registered
public accounting firm for the fiscal year ending March 31, 2012.
The stockholders voted to approve the compensation of the
Company's named executives on an advisory (non-binding) basis and
to hold a vote on the compensation of the Company's named
executives every three years.
About Valence Technology
Austin, Texas-based Valence Technology, Inc. (NASDAQ: VLNC) --
http://www.valence.com/-- is a global leader in the development
of safe, long-life lithium iron magnesium phosphate energy storage
solutions and provides the enabling technology behind some of the
world's most innovative and environmentally friendly applications.
Valence Technology has its Research & Development Center in
Nevada, its Europe/Asia Pacific Sales office in Northern Ireland
and global fulfillment centers in North America and Europe.
The Company reported a net loss of $12.68 million on $45.88
million of revenue for the year ended March 31, 2011, compared
with a net loss of $23.01 million on $16.08 million of revenue
during the prior year.
The Company's balance sheet at June 30, 2011, showed $44.74
million in total assets, $90.58 million in total liabilities,
$8.61 million in redeemable convertible preferred stock, and a
$54.45 million total stockholders' deficit.
As reported by the TCR on June 3, 2011, PMB Helin Donovan, LLP, in
Austin, Texas, noted that Company's recurring losses from
operations, negative cash flows from operations and net
stockholders' capital deficiency raise substantial doubt about its
ability to continue as a going concern.
VINEYARD AT SERRA: Hires David W. Meadows as Counsel
----------------------------------------------------
The U.S. Bankruptcy Court Central District of California has
authorized The Vineyard at Serra Retreat to employ the law offices
of David W. Meadows as counsel effective as of June 15, 2011.
About The Vineyard at Serra Retreat
The Vineyard at Serra Retreat, LLC, in Malibu, California, filed
for Chapter 11 bankruptcy (Bankr. C.D. Calif. Case No. 11-17323)
on June 15, 2011. Judge Victoria S. Kaufman presides over the
case. The Law Offices of David W. Meadows serves as bankruptcy
counsel. The Company disclosed $19,017,000 in assets and
$27,180,313 in liabilities. The petition was signed by John
Hall, manager.
VINEYARD AT SERRA: Hires Keller Williams/West as Property Broker
----------------------------------------------------------------
The U.S. Bankruptcy Court for the Central District of California
has authorized The Vineyard at Serra Retreat, LLC, to employ
Keller Williams/West Realty Group as its real estate broker.
The broker will be paid a commission of 3 percent (or 5 percent)
of the total purchase price, which will be paid out of an escrow
upon consummation of the sale of the property. The broker has not
received any compensation from the Debtor in respect of the
agreement.
About The Vineyard at Serra Retreat
The Vineyard at Serra Retreat, LLC, in Malibu, California, filed
for Chapter 11 bankruptcy (Bankr. C.D. Calif. Case No. 11-17323)
on June 15, 2011. Judge Victoria S. Kaufman presides over the
case. The Law Offices of David W. Meadows serves as bankruptcy
counsel. The Company disclosed $19,017,000 in assets and
$27,180,313 in liabilities. The petition was signed by John
Hall, manager.
VISUALANT INC: Receives First Patent on SPM Technology
------------------------------------------------------
Visualant, Inc., announced that it has received its first patent
on its Spectral Pattern Matching technology.
The Visualant technology was developed by renowned research
scientists, Drs. Tom Furness and Brian Schowengerdt. A number of
years were spent in the laboratory developing a unique proprietary
approach to mapping color at the photon level and using that
mapping as a basis for authentication and diagnostics. In
conjunction with the stellar work being done in the lab, the
Company pursues an aggressive patent strategy to protect its
unique intellectual property.
Drs. Furness and Schowengerdt and their laboratory development
team brought a generation of experience to the Visualant SPM
development process. Dr. Furness is known in many circles as the
"Father of Virtual Reality." Dr. Schowengerdt is an
internationally renowned leader in the field of color perception.
The patent issued by the United States Office of Patents and
Trademarks is US Patent No. 7,996,173 and is entitled "Method,
Apparatus and Article to Facilitate Distributed Evaluation of
Objects Using Electromagnetic Energy."
Ron Erickson, Visualant Founder and CEO, stated, "We are very
pleased to receive our first patent covering our SPM technology.
Our science team is world-class. The issuance of this patent
validates our belief that our technology is unique and
transformative. We expect more patents to be issued as we build
the intellectual property foundation for Visualant's business and
move into the marketplace with diverse applications of our SPM
technology."
About Visualant Inc.
Seattle, Wash.-based Visualant, Inc., was incorporated under the
laws of the State of Nevada on October 8, 1998. The Company
develops low-cost, high speed, light-based security and quality
control solutions for use in homeland security, anti-
counterfeiting, forgery/fraud prevention, brand protection and
process control applications.
As reported in the Troubled Company Reporter on Jan. 4, 2011,
Madsen & Associates CPA's, Inc., Salt Lake City, expressed
substantial doubt about Visualant, Inc.'s ability to continue as a
going concern, following the Company's results for the fiscal year
ended September 30, 2010. The independent auditors noted that the
Company will need additional working capital for its planned
activity and to service its debt.
The Company's balance sheet at June 30, 2011, showed $4.70 million
in total assets, $5.96 million in total liabilities, $39,072 in
noncontrolling interest and a $1.29 million total stockholders'
deficit.
VITAMINSPICE: Seeks Damages for Involuntary Filing
--------------------------------------------------
Bill Rochelle, the bankruptcy columnist for Bloomberg News,
reports that VitaminSpice came back with all guns blazing when a
former lawyer for the Company named Jehu Hand and companies he
allegedly controls filed an involuntary Chapter 11 petition in
early August.
The Wayne, Pennsylvania-based Company filed a motion last week to
dismiss the involuntary filing, contending that Hand sought the
bankruptcy to avoid the consequences of his own misconduct.
According to the report, VitaminSpice notes how Mr. Hand filed a
lawsuit against the company. He filed bankruptcy, the Alleged
Debtor says, to halt his own lawsuit after the company filed
counterclaims for "wide-ranging stock fraud and other misconduct."
If the bankruptcy is dismissed, VitaminSpice says it wants
punitive damages against Hand.
The papers seeking dismissal, the report notes, don't contend that
the company is paying its debt or that Hand's claim is disputed.
Indeed, the Company's own regulatory filing admits there is
substantial doubt about the ability to continue as a going
concern.
The balance sheet for March 31 shows assets of $53,000 against
$11.4 million in debt. In the first quarter, revenue was less than
$1,000. The net loss for the quarter was $555,000.
About VitaminSpice
Five creditors filed an involuntary Chapter 11 petition (Bankr.
E.D. Pa. Case No. 16200) against Wayne, Pennsylvania-based
VitaminSpice aka Qualsec on Aug. 5, 2011. The creditors, owed
roughly $414,000 in the aggregate, are: John Robison in
Philadelphia, Pennsylvania; IBT South Florida, LLC, in Fort
Lauderdale, Florida; Learned J. Hand in Chapel Hill, North
Carolina; and Jehu Hand in Dana Point, California; and Esthetics
World in Cheyenne, Wyoming. Judge Magdeline D. Coleman presides
over the case. Peter Edward Sheridan, Esq. --
sheridan.pete@gmail.com -- in Philadelphia, Pennsylvania,
represents the petitioning creditors.
The company makes vitamin- and antioxidant-infused spices as food
and dietary supplements.
WALTER NG: Faces Securities Fraud Class Action in California
------------------------------------------------------------
Dan Noyes, writing for KGO, reports that a major class action
lawsuit has been filed in what could turn out to be the largest
securities fraud in state history. It's a story the ABC7 I-Team
first broke: Thousands of investors are out more than $700
million.
ABC7 reported that the FBI and SEC are investigating, and this
class action lawsuit was filed on Sept. 1 in Alameda Superior
Court. The lawsuit is being carried out by a law firm out of
Phoenix.
Yoko Oshima is named as a plaintiff in the class action lawsuit.
She says Walter Ng personally guaranteed that he would protect the
investment she made with his real estate funds so she could care
for her 24-year-old autistic daughter, Lisa.
"I told him, this is not just my life, this is my daughter for
future life, and he said, don't worry about it," Ms. Oshima said.
But with Mr. Ng's companies in default, the lawsuit says about
2,800 investors are out more than $700 million. Ms. Oshima is
frantic now that $450,000 she invested for her daughter's special
needs trust is gone.
"There's a lack of morality," Ms. Oshima said. "Even the
business, people still have to have morality. That's my word."
The lawsuit names the Ng Family companies that operate out of the
Lafayette office: Bar-K Inc., RE Loans -- the fund that made real
estate development loans -- and B-4 Partners, who managed the
fund.
The complaint said Walter Ng, his sons Barney and Kelly and Bruce
Horowits "raised funds through the illegal sale of unregistered
securities" and "with the knowing assistance of Defendants Wells
Fargo and (law firm) Greenberg Traurig, engaged in a scheme to
breach their fiduciary duties to the investors in order to prop up
RE Loans and personally enrich themselves and their friends and
business associates."
"It is a very sad case," said class action attorney Greg
Fairbourn. "A lot of people have been taken advantage of by the
conduct we described in the complaint."
The class action filed by Mr. Fairbourn also names Wells Fargo.
Through its Capital Finance unit, it provided a $50 million line
of credit that was supposed to help keep RE Loans afloat.
Mr. Fairbourn said the allegation they've made is that money was
disbursed to preferred investors -- friends and family members.
"That's the allegation that we've made based on the investigation
that we've done, and we believe that to be accurate,"
Mr. Fairbourn said.
Wells Fargo e-mailed a statement that reads, "The lawsuit against
Wells Fargo Capital Finance is without merit, and we will defend
ourselves against the allegations. Beyond that, we cannot provide
any further comment at this time."
There was also no comment from several major players in this
story. Kelly Ng had no comment when ABC7 stopped by a recent Cal
Men's Volleyball Team, and Walter Ng declined to speak with ABC7
when ABC7 caught up with him after a hearing in his bankruptcy
case.
Barney Ng tried to deflect the blame to his father, brother and
Bruce Horowitz when reached by phone on Sept. 1, saying "I didn't
make decisions, and didn't have the authority to make decisions,
on how the investors' money was handled."
Barney Ng was the one who went out to find projects in which to
invest.
There was also no comment from law firm Greenberg Traurig.
Cal told ABC7 on Sept. 1 that Kelly Ng's contract has not been
renewed with the school and he is no longer a coach there. Cal
officials called this case a "distraction for the students."
Walter Ng filed for Chapter 11 protection in the U.S. Bankruptcy
Court the Northern District of California (Case No. 11-45175) on
May 12, 2011.
WELDING TECHNIQUES: Files for Chapter 11 Bankruptcy Protection
--------------------------------------------------------------
Annie Johnson at Nashville Business Journal reports that Mt.
Juliet, Tennessee-based Welding Techniques and Services
voluntarily filed for Chapter 11 bankruptcy protection in U.S.
Bankruptcy Court Middle District of Tennessee.
The report says Chapter 11 allows a company to reorganize its
finances and continue operating.
According to the report, the company identified between $1 to
$10 million in both assets and liabilities. Among the largest
unsecured creditors are the Internal Revenue Service, for roughly
$49,000, and Bank of America, for nearly $39,000. The Company,
according to its Web site, specializes in stair and handrail
systems, steel fabrication and installation.
WELDING TECHNIQUES: Case Summary & 20 Largest Unsecured Creditors
-----------------------------------------------------------------
Debtor: Welding Techniques & Services Inc
9485 Lebanon Road
Mt. Juliet, TN 37072
Bankruptcy Case No.: 11-08685
Chapter 11 Petition Date: August 3, 2011
Court: United States Bankruptcy Court
Middle District of Tennessee (Nashville)
Judge: Keith M. Lundin
Debtor's Counsel: Gary Dean Copas, Esq.
144 Second Ave North, Suite 200
Nashville, TN 37201
Tel: (615) 242-7020
Fax: (615) 244-9231
E-mail: copasatty@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 20 largest unsecured creditors filed
together with the petition is available for free at
http://bankrupt.com/misc/tnmb11-08685.pdf
The petition was signed by Randy Carey, president.
WELLCARE HEALTH: Moody's Assigns 'B1' to Planned Bond Issuance
--------------------------------------------------------------
Moody's Investors Service has assigned a B1 subordinated debt
rating to WellCare Health Plans, Inc.'s $112.5 million planned
bond issuance. The bonds are being issued as part of an agreement
to settle a consolidated class action lawsuit against the company.
The outlook on the rating is stable.
RATINGS RATIONALE
Moody's said that the B1 debt rating reflects its standard
notching practice of rating holding company subordinated debt four
notches below the insurance financial strength (IFS) rating of a
downstream operating company (i.e., WellCare of Florida, Inc., IFS
at Baa3/stable). The subordinated bonds will have an aggregate
face value of $112.5 million, with a fixed coupon of 6% and a
maturity date of December 31, 2016. WellCare has the right to
redeem the bonds at 102% of face value during the first year and
at 100% of face value thereafter. The notes are subordinated in
right of payment to the prior payment in full of all current and
future senior debt.
The rating agency said the ratings of WellCare and its operating
company are supported by the organization's financial profile,
characterized by adequate and consistent operating earnings, and
strong cash flow including a stream of unregulated cash flows from
management fees. However, the ratings also reflect a somewhat
weaker business profile, largely the result of the nature of the
company's business, which is exclusively focused on the Medicare
and Medicaid segments with over 70% of its medical membership
concentrated in Florida and Georgia.
Moody's commented that the ratings reflect the company having
sufficiently addressed the financial impact of the legal
proceedings related to the recently completed investigations by
Federal and State of Florida agencies as well as the financial
improvement and stability shown by WellCare's Medicaid and
Medicare businesses. WellCare's new management team has
successfully navigated the company past these investigation and
litigation issues and successfully retained all its Medicaid
contracts. In addition, Moody's noted that the Kentucky Cabinet
for Health and Family Services recently selected WellCare of
Kentucky as one of four insurers to serve the state's new Medicaid
program.
This rating was assigned with a stable outlook:
WellCare Health Plans, Inc. -- subordinated debt rating at B1.
The principal methodology used in rating WellCare was Moody's
Rating Methodology for U.S. Health Insurance Companies published
in May 2011.
WellCare Health Plans, Inc. is headquartered in Tampa, Florida.
For the first six months of 2011, the company reported
approximately $3.0 billion in total revenue. As of June 30, 2011
shareholders' equity was $936 million and total medical membership
(excluding Medicare Part D) was approximately 1.4 million members.
Moody's insurance financial strength ratings are opinions about
the ability of insurance companies to punctually pay senior
policyholder claims and obligations.
WILLIAMS LOVE: Expects to Pay Creditors in Full If Given Time
-------------------------------------------------------------
Jeff Manning at OregonLive.com reports that the Portland law firm
Williams, Love, O'Leary & Powers filed Chapter 11 bankruptcy,
victim of a near-term cash flow crunch.
According to the report, the firm made its name representing
individuals in high-stakes legal battles against giant
pharmaceutical companies in medical product liability cases. It
is a lead firm in hundreds of lawsuits filed by women who claim
hormone therapy intended to alleviate menopause side effects
actually caused breast cancer or other negative health effects.
The report says those settlements could be worth millions of
dollars to the plaintiffs and their lawyers. But those potential
paydays are a year or more off, said Michael Williams, a partner
in the firm.
The report notes, meanwhile, the firm's lender, Sterling Bank, is
expecting payments on its $4 million debt. "We can't pay the bank
back what it wants and continue to operate," Williams said.
Filing Chapter 11 bankruptcy "is the only way we could make the
bank wait."
Mr. Manning relates that the firm says it will be able to survive
and pay its creditors in full if it is granted the time and
protection from creditors, allowing it to bring some of its cases
to conclusion.
The report notes that the financial issues at Williams Love are
more a function of its unusual practice than the economy. The
firm specializes in protracted, expensive legal battles against
big Pharma.
About Williams Love O'Leary & Powers
Based in Portland, Oregon, Williams, Love, O'Leary & Powers, P.C.,
fdba Williams, Dailey & O'Leary, P.C., dba WLOP and WDO.com, filed
for Chapter 11 bankruptcy (Bankr. D. Ore. Case No. 11-37021) on
Aug. 14, 2011. Judge Elizabeth L. Perris presides over the case.
In its petition, the Debtor estimated $10 million to $50 million
in assets and $1 million to $10 million in debts. The petition
was signed by Michael L. Williams, its president.
Albert N. Kennedy, Esq., and Michael W. Fletcher, Esq., at Tonkon
Torp LLP, in Portland, Oregon, represent the Debtor as counsel.
WOLF MOUNTAIN: To Employ Zimmerman Jones as Appellate Counsel
-------------------------------------------------------------
Wolf Mountain Resorts, L.C., seeks permission from the U.S.
Bankruptcy Court for the District of California to employ and
retain Zimmerman Jones Booher LLC as Special Appellate Counsel.
Upon retention, the firm, assist the Debtor in connection with:
(1) any and all appeals and matters relating to such appeals
stemming from or otherwise relating to the Consolidated
Action, including, but not limited to, the anticipated
appeal by the Debtor of the ASC Judgment; and
(2) any and all appeals and matters relating to the Leasehold
Appeal, including, but not limited to, the upcoming oral
argument in that appeal set for Sept. 19, 2011.
The firm's hourly rates are:
Personnel Rates
--------- -----
Michael D. Zimmerman, Esq. $385
Linda M. Jones, Esq. $295
Troy L. Booher, Esq. $295
Elizabeth Kennedy, Esq. $200
ZJB is not a creditor, an equity security holder, or an insider of
the Debtor. ZJB does not have any connection with any insider of
the Debtor or any insider of an insider of the Debtor outside of
the instant proposed engagement of ZJB. ZJB also does not
have any connection with any known creditor or other party in
interest of the Debtor.
ZJB is not and was not an investment banker for any outstanding
security of the Debtor. ZJB has not been within three years prior
to the Petition Date an investment banker for a security of the
Debtor, or an attorney for such investment banker in
connection with the offer, sale or issuance of any security of the
Debtor.
Neither ZJB nor anyone employed by ZJB is, nor was, within two
years prior to the Petition Date, a member, manager, director,
officer, or employee of the Debtor or of any investment banker for
any security of the Debtor.
Although not a requirement given that ZJB will be employed under
11 U.S.C. Section 327(e), ZJB is a "disinterested person" as that
term is defined in section 101(14) of the Bankruptcy Code.
ASC Utah Opposes
ASC Utah, LLC, a secured creditor holding a claim in excess of
$60 million in the above-captioned bankruptcy case, submitted an
opposition to the Application.
ASC Utah points out that in the Application, the Debtor represents
that the source of the proposed retainer of $75,000 to Zimmerman
Jones Booher LLC will be "the funds to be lent to the Debtor by
Canyon Mountain" and further represents that it will seek the
approval of the loan from Canyon Mountain by filing a motion for
approval of postpetition financing.
Contrary to the Debtor's representation, however, the DIP
Financing Motion states that the retainer to ZJB has already been
advanced by Canyon Mountain even before the proposed loan (which
has been opposed by ASCU and the Office of the United States
Trustee) has been approved by the Court.
According to the report, the discrepancy between the
representations in the Application and the DIP Financing Motion
about the timing of the payment of the retainer is consistent with
the Debtor's pattern of misrepresentations and obfuscation. As
set forth in ASCU's objection to the DIP Financing Motion, the
Debtor and Canyon Mountain have not been truthful to the Court
about Mr. Griswold's continued financial interest in the Debtor or
about Canyon Mountain's representations regarding funding of the
Debtor's operations.
Accordingly, ASCU believes Canyon Mountain's proposed loan to the
Debtor, including the advance of the retainer to ZJB, should not
be retroactively approved as a postpetition loan with superiority
administrative expense priority status.
Similarly, based on the conflicting representations made by the
Debtor in the Application regarding the payment of the retainer to
ZJB, ASCU respectfully requests that the Court deny approving the
Application until the Debtor provides clarification regarding how
and when Canyon Mountain advanced ZJB's retainer.
About Wolf Mountain Resorts
Wolf Mountain Resorts, L.C., based in Los Angeles, California,
filed for Chapter 11 bankruptcy (Bankr. C.D. Calif. Case No.
11-30162) on May 9, 2011. Judge Peter Carroll presides over the
case. Mark S. Horoupian, Esq., at SulmeyerKupetz, serves as
bankruptcy counsel. Wolf Mountain Resorts estimated that both its
assets and debts measure between $100 million and $500 million.
WONDER AUTO: Gets of Letter From Nasdaq Hearings Panel
------------------------------------------------------
Wonder Auto Technology, Inc. has received notice that its appeal
hearing with respect to Nasdaq's previously announced decision to
delist the Company's common stock from trading on Nasdaq has been
set for October 6, 2011. As previously reported, the Company
received a letter from the Listing Qualifications Department of
Nasdaq on August 18, 2011 stating that based on the review of
public documents and information provided by the Company, Nasdaq's
staff determined that the continued listing of the Company's
securities on Nasdaq is no longer warranted. Following the
receipt of that letter, the Company requested an oral hearing
before the Panel to appeal the Staff's determination.
In addition, Nasdaq has notified the Company that the trading halt
on the Company's securities will be lifted as of the opening of
the market on September 12, however, trading of the common stock
of the Company will remain suspended on Nasdaq pending the results
of the delisting hearing. As a result of the lifting of the
trading halt, the Company's common stock will become eligible to
be traded on the over-the-counter bulletin board commencing
September 12, 2011.
The Company's Audit Committee is still conducting its
investigation into certain alleged related-party transactions and
other matters as well as whether the Company's financial
statements have been manipulated and falsified by former senior
corporate officers. The Company is working diligently to complete
its delinquent Forms 10-K and 10-Q and expects the reports to be
completed as soon as possible following the conclusion of the
Investigation. The Company intends to seek relief from the Nasdaq
delisting determination and a further extension of time to file
its delinquent reports.
There is no assurance that the Panel will grant the Company's
request for relief from the delisting determination. If the
Company's request is denied, the Company's securities will be
delisted from Nasdaq.
ZOGENIX INC: Amends 12-Mil. Common Shares Offering on Form S-1
--------------------------------------------------------------
Zogenix, Inc., filed with the U.S. Securities and Exchange
Commission Amendment No.1 to Form S-1 registration statement
relating to the Company's offer to sell 12,000,000 shares of the
its common stock. The Company's common stock is listed on the
Nasdaq Global Market under the symbol "ZGNX." On Sept. 2, 2011,
the last reported sale price of the Company's common stock on the
Nasdaq Global Market was $3.39 per share.
The Company has granted a 30-day option to the underwriters to
purchase up to 1,800,000 additional shares of the Company's common
stock (15% of the shares sold).
Cowen Healthcare Royalty Partners II, L.P., a current stockholder,
Roger L. Hawley, the Company's Chief Executive Officer, and Ann D.
Rhoads, the Company's Executive Vice President and Chief Financial
Officer, have indicated an interest in purchasing $1.5 million,
$100,000 and $100,000 of shares of the Company's common stock in
this offering, respectively. However, because indications of
interest are not binding agreements or commitments to purchase,
the underwriters may determine to sell more, less or no shares in
this offering to any of these parties, or any of these parties may
determine to purchase more, less or no shares in this offering.
The underwriters will not receive an underwriting discount or
commission on any sales of shares to these parties.
A full-text copy of the amended prospectus is available for free
at http://is.gd/ChEyq3
About Zogenix Inc.
Zogenix, Inc. (NASDAQ: ZGNX), with offices in San Diego and
Emeryville, California, is a pharmaceutical company
commercializing and developing products for the treatment of
central nervous system disorders and pain.
The Company's balance sheet at June 30, 2011, showed
$51.4 million in total assets, $58.5 million in total liabilities,
and a stockholders' deficit of $7.1 million.
As reported in the TCR on March 8, 2011, Ernst & Young LLP, in San
Diego, Calif., expressed substantial doubt about Zogenix's ability
to continue as a going concern, following the Company's 2010
results. The independent auditors noted that of the Company's
recurring losses from operations and lack of sufficient working
capital.
* S&P's Global Corporate Default Tally Rises to 28 in 2011
----------------------------------------------------------
Standard & Poor's Ratings Services revised its ratings on two
corporate issuers to 'D' last week, raising the 2011 global
corporate default tally to 28, said an article published Friday by
Standard & Poor's Global Fixed Income Research, titled "Global
Corporate Default Update (Sept. 1 - 7, 2011)."
One of the issuers, U.S.-based paper producer NewPage Corp., filed
for Chapter 11 bankruptcy protection, and the other issuer was
confidential. The tally of global corporate defaults in 2011 is
slightly less than half the 61 issuers that defaulted by this time
last year. Regionally, 19 of the defaulters this year were based
in the U.S., three were based in New Zealand, two were in Canada,
and one each was in the Czech Republic, France, Israel, and
Russia. Of the total defaulters by this time in 2010, 44 were
U.S.-based issuers, eight were in the other developed region
(Australia, Canada, Japan, and New Zealand), seven were from the
emerging markets, and two were European issuers.
Twelve of this year's defaults were due to missed interest or
principal payments and six were due to distressed exchanges --
both among the top reasons for default in 2010. Of the remaining
10, five issuers defaulted after they filed for bankruptcy,
another two were forced into liquidation as a result of regulatory
actions, the eighth had its banking license revoked by its
country's central bank, the ninth was appointed a receiver, and
the 10th was confidential. Of the defaults in 2010, 28 defaults
resulted from missed interest or principal payments, 25 resulted
from Chapter 11 and foreign bankruptcy filings, 23 from distressed
exchanges, three from receiverships, one from regulatory
directives, and one from administration.
Standard & Poor's expects the U.S. corporate trailing 12-month
speculative-grade default rate to decline to 1.6% by June 2012. A
total of 25 issuers would need to default from July 2011 to June
2012 to reach this forecast. By comparison, the default rate in
June 2011 is 2.25%. In the 12 months ended June 2011, 32
speculative-grade issuers defaulted. Less than one-third of those
defaults occurred in the first half of 2011. Improved lending
conditions and greater availability of capital, even for low-rated
issuers, continue to temper our default expectations in the short
term. In addition, stronger credit quality, as reflected by fewer
downgrades and lower negative bias, should help companies mitigate
the effects of lackluster economic growth and uncertainty about
domestic and international sovereign funding.
In addition to its baseline projection, S&P forecasts the default
rate in its optimistic and pessimistic scenarios. In S&P's
optimistic default rate forecast scenario, the economy and the
financial markets improve more than expected, and, as a result,
S&P would expect the default rate to be 1.2% (18 defaults in the
next 12 months).
On the other hand, if the economic recovery stalls and the
financial markets deteriorate -- which is S&P's pessimistic
scenario -- S&P expects the default rate to be 4% (62 defaults) by
June 2012. S&P bases its forecasts on quantitative and
qualitative factors that we consider, including, but not limited
to, Standard & Poor's proprietary default model for the U.S.
corporate speculative-grade bond market. S&P updates its outlook
for the U.S. issuer-based corporate speculative-grade default rate
each quarter after analyzing the latest economic data and
expectations.
* Florida Bank Shuttered; Year's Failures Now 71
------------------------------------------------
The First National Bank of Florida, Milton, Florida, was closed
Friday by the Office of the Comptroller of the Currency, which
appointed the Federal Deposit Insurance Corporation (FDIC) as
receiver. To protect the depositors, the FDIC entered into a
purchase and assumption agreement with CharterBank, West Point,
Georgia, to assume all of the deposits of The First National Bank
of Florida.
The FDIC estimates that the cost to the Deposit Insurance Fund
(DIF) will be $46.9 million. Compared to other alternatives,
CharterBank's acquisition was the least costly resolution for the
FDIC's DIF. The First National Bank of Florida is the 71st FDIC-
insured institution to fail in the nation this year, and the
eleventh in Florida. The last FDIC-insured institution closed in
the state was Lydian Private Bank, Palm Beach, on August 19, 2011.
2011 Failed Banks List
The FDIC was appointed as receiver for the closed banks. To
protect the depositors, the FDIC entered into a purchase and
assumption agreement with various banks that agreed to assume the
deposits of most of the closed banks. The FDIC also entered into
loss-share transactions on assets bought by the banks.
For this year, the failed banks are:
Loss-Share
Transaction Party FDIC Cost
Assets of Bank That Assumed to Insurance
Closed Bank Deposits & Bought Fund
Closed Bank (millions) Certain Assets (millions)
----------- ----------- ----------------- ------------
First Nat'l Bank, Fla. $296.8 CharterBank $46.9
CreekSide Bank $102.3 Georgia Commerce Bank $27.3
Patriot Bank of Georgia $150.8 Georgia Commerce Bank $44.4
First Choice Bank Geneva $141.0 Inland Bank & Trust $31.0
First Southern Nat'l $164.6 Heritage Bank of the South $39.6
Lydian Private Bank $1,700.0 Sabadell United Bank $293.2
Public Savings Bank $46.8 Capital Bank, N.A. $11.0
1st Nat'l Bank of Olathe $538.1 Enterprise Bank & Trust $116.6
Bank of Whitman $548.6 Columbia State Bank $134.8
Bank of Shorewood $110.7 Heartland Bank and Trust $25.6
Integra Bank $2,200.0 Old National Bank $170.7
BankMeridian, N.A. $239.8 SCBT N.A. $65.4
Virginia Business $95.8 Xenith Bank $17.3
Bank of Choice $1,070.0 Bank Midwest, N.A. $213.6
LandMark Bank of Fla. $275.0 American Momentum $34.4
Southshore Community $46.3 American Momentum $8.3
Summit Bank $72.0 The Foothills Bank $11.3
First Peoples Bank $228.3 Premier American Bank $7.4
One Georgia Bank $186.3 Ameris Bank $44.4
High Trust Bank $192.5 Ameris Bank $66.0
Colorado Capital $717.5 First-Citizens Bank $283.8
First Chicago Bank $959.3 Northbrook Bank $284.3
Signature Bank $66.7 Points West Community $22.3
Mountain Heritage $103.7 First American Bank $41.1
First Commercial Bank $98.6 Stonegate Bank $28.5
McIntosh State Bank $339.9 Hamilton State Bank $80.0
Atlantic Bank and Trust $208.2 First Citizens Bank $36.4
First Heritage Bank $173.5 Columbia State $34.9
First Georgia Banking $731.0 CertusBank $156.5
Atlantic Southern $741.9 CertusBank $273.5
Summit Bank $142.7 Columbia State $15.7
Coastal Bank $129.4 Premier American Bank $13.4
Community Central $476.3 Talmer Bank & Trust $183.2
The Park Avenue Bank $953.3 Bank of the Ozarks $306.1
Cortez Community Bank $70.9 Florida Community Bank $18.6
First National Bank $352.0 Florida Community Bank $42.9
First Choice Community $308.5 Bank of the Ozarks $92.4
Heritage Banking $224.0 Trustmark National $49.1
Rosemount National $37.6 Central Bank $3.6
Nexity Bank $793.7 AloStar Bank of Commerce $175.4
New Horizons Bank $110.7 Citizens South Bank $30.9
Bartow County Bank $330.2 Hamilton State Bank $69.5
Superior Bank $3,000.0 Superior Bank, N.A. $259.6
Nevada Commerce Bank $144.9 City National Bank $31.9
Western Springs $186.8 Heartland Bank $31.0
Bank of Commerce $163.1 Advantage National $41.9
Legacy Bank $190.4 Seaway Bank and Trust $43.5
First Nat'l Bank of Davis $90.2 The Pauls Valley National $26.5
Valley Community Bank $123.8 First State Bank $22.8
Citizens Bank $214.3 Heritage Bank $59.4
San Luis Trust $332.6 First California $96.1
Habersham Bank $387.6 SCBT National $90.3
Charter Oak Bank $120.8 Bank of Marin $21.8
Sunshine State $125.5 Premier American $30.0
Badger State Bank $83.8 Royal Bank $17.5
Canyon National $210.9 Pacific Premier Bank $10.0
Peoples State Bank $390.5 First Michigan Bank $87.4
American Trust Bank $238.2 Renasant Bank $71.5
Community First $51.1 Northbrook Bank $11.7
North Georgia Bank $153.2 BankSouth $35.2
First Community Bank $2,310.0 U.S. Bank, N.A. $260.0
FirsTier Bank $781.5 No Acquirer $242.6
Evergreen State $246.5 McFarland State $22.8
The First State Bank $43.5 Bank 7 $20.1
The Bank of Asheville $195.1 First Bank $56.2
CommunitySouth Bank $440.6 Certus Bank $46.3
Enterprise Banking $100.9 [No Acquirer] $39.6
United Western Bank $2,050.0 First-Citizens Bank $312.8
Oglethorpe Bank $230.6 Bank of the Ozarks $80.4
Legacy Bank, Arizona $150.6 Enterprise Bank & Trust $27.9
First Commercial Bank $598.5 First Southern Bank $78.0
In 2010, there were 157 failed banks, compared with 140 in 2009
and just 25 for 2008.
A complete list of banks that failed since 2000 is available at:
http://www.fdic.gov/bank/individual/failed/banklist.html
865 Banks in Problem List
The Federal Deposit Insurance Corp.'s list of "problem" banks fell
in the second quarter 2011 for the first time since 2006 as the
industry's income improved and costs tied to bad loans eased. The
confidential list of banks deemed at greater risk of collapse
shrank by 23 firms to 865, the FDIC said Aug. 23 in its Quarterly
Banking Profile. The last time that happened was the third
quarter of 2006 before the credit crisis began, the agency said.
The FDIC defines "problem" institutions as those with financial,
operational or managerial weaknesses that threaten their
viability.
The deposit insurance fund, which protects customer holdings up to
$250,000 per account in the event of a failure, was positive for
the first time in two years, the agency said. The fund rose to
$3.9 billion, because of fewer expected bank failures and
assessment revenue, the agency said. The FDIC insures deposits at
more than 7,500 banks and thrifts.
Problem Institutions Failed Institutions
-------------------- -------------------
Year Number Assets (Mil) Number Assets (Mil)
---- ------ ------------ ------ ------------
2010 884 $390,017 157 $92,085
2009 702 $402,800 140 $169,700
2008 252 $159,405 25 $371,945
2007 76 $22,189 3 $2,615
2006 50 $8,265 0 $0
2005 52 $6,607 0 $0
2004 80 $28,250 4 $170
Federal regulators assign a composite rating to each financial
institution, based upon an evaluation of financial and operational
criteria. The rating is based on a scale of 1 to 5 in ascending
order of supervisory concern. "Problem" institutions are those
institutions with financial, operational, or managerial weaknesses
that threaten their continued financial viability. Depending upon
the degree of risk and supervisory concern, they are rated either
a "4" or "5." The number and assets of "problem" institutions are
based on FDIC composite ratings. Prior to March 31, 2008, for
institutions whose primary federal regulator was the OTS, the OTS
composite rating was used.
* 2011 Large Chapter 11 Cases Increase to 48
--------------------------------------------
The number of Chapter 11 cases with assets in excess of $100
million increased to five in August, compared to only three in
July, or an increase of about 40%.
For the first eight months of 2011, there were a total of 48
companies with assets of at least $100 million that filed for
Chapter 11 bankruptcy, or an average of six mega cases per month.
In comparison, during the first eight months of 2010, there were a
total of 71 mega cases, or an average of about 9 per month. The
decrease in the number of mega cases for the first eight months in
2011 as compared to 2010 was about 31%.
For fiscal year 2010, there were a total of 105 mega cases, or an
average of about 9 per month.
There was no Chapter 11 filing with assets in excess of $1 billion
that filed for Chapter 11 bankruptcy protection in August 2011.
In comparison, in August of last year, there was one company that
filed for Chapter 11 with assets in excess of $1 billion -- Boston
Generating LLC.
Through Aug. 31, 2011, only two companies with assets in excess of
$1 billion have filed for Chapter 11 protection -- Borders Group
and MSR Resort Golf Course -- both of which filed in February.
During the first eight months of 2010, there were a total of three
companies that filed for Chapter 11 with assets in excess of $1
billion. In addition to Boston Generating LLC which filed for
Chapter 11 in August 2010, Innkeepers USA Trust and Protech
Holdings LLC filed for Chapter 11 in July 2010.
The largest Chapter 11 filing for August 2011 was by Marlboro,
Mass.-based Evergreen Solar, Inc., which filed on Aug. 15, with
the U.S. Bankruptcy Court for the District of Delaware, Case No.
11-12590, before Judge Mary F. Walrath. The Company's balance
sheet at April 2, 2011, showed $373.97 million in assets, $455.51
million in total liabilities, and a stockholders' deficit of
$81.53 million.
Evergreen Solar develops, manufactures and markets String Ribbon
solar power products using its proprietary, low-cost silicon wafer
technology. The Company's patented wafer manufacturing technology
uses significantly less polysilicon than conventional processes.
Evergreen Solar's products provide reliable and environmentally
clean electric power for residential and commercial applications
globally.
In conjunction with the Chapter 11 filing, Evergreen Solar entered
into a restructuring support agreement with certain holders of
more than 70% of the outstanding principal amount of the Company's
13% convertible senior secured notes. As part of the bankruptcy
process the Company will undertake a marketing process and will
permit all parties to bid on its assets, as a whole or in
groups. An entity formed by the supporting noteholders, ES
Purchaser, LLC, entered into an asset purchase agreement with the
Company to serve as a "stalking-horse" and provide a "credit-bid"
pursuant to the Bankruptcy Code for assets being sold.
The second largest Chapter 11 filing was by Merced Falls Ranch
LLC, which filed on Aug. 16, 2011, with the Bankruptcy Court for
the Eastern District of California in Fresno, Case No. 11-19212,
before Judge W. Richard Lee. Merced Falls Ranch listed total
assets of $439,670,200 and total liabilities of $12,465,503.
Merced Falls Ranch owns 7,612 acres of pasture land in Merced
County, California.
The next largest Chapter 11 filing was by ShengdaTech Inc., which
sought Chapter 11 bankruptcy protection on Aug. 19, 2011, from
creditors with the Bankruptcy Court for the District of Nevada,
Case No. 11-52649, before Judge Bruce T. Beesley.
The Shanghai-China based company said in its bankruptcy filing it
would fire all of its officers and restructure to try to recover
from an accounting scandal. The Company disclosed $295.4 million
in assets and $180.9 million in debt as of Sept. 30, 2011.
Headquartered in Shanghai, China, ShengdaTech makes nano-
precipitated calcium carbonate for the tire industry. ShengdaTech
converts limestone into nano-precipitated calcium carbonate (NPCC)
using its proprietary and patent-protected technology. NPCC
products are increasingly used in tires, paper, paints, building
materials, and other chemical products. In addition to its broad
customer base in China, the Company currently exports to
Singapore, Thailand, South Korea, Malaysia, India, Latvia and
Italy.
Otero County Hospital Associates, Inc., filed for Chapter 11
protection on Aug. 16, 2011, with the Bankruptcy Court for the
District of New Mexico, Case No. 11-13686, before Judge Robert H.
Jacobvitz. The Company listed $124.19 million in total assets and
$40.51 million in total liabilities. The Alamogordo, New Mexico-
based nonprofit developed and operates the Gerald Champion
Regional Medical Center, a not-for-profit 99-bed acute care
facility located in Alamogordo, N.M.
William Morgan Hay, CFO, said in a court filing that since June
2010, GCRMC, along with QHR and a number of other defendants, has
been subject to an onslaught of personal injury lawsuits stemming
from a series of procedures performed at the Hospital between 2006
and 2008. In total, 47 individuals who underwent such procedures
have filed the Lawsuits. Only two physicians, one operating
independently and one employed by the Hospital, were involved in
some manner with the Lawsuits. Currently, neither of the
physicians implicated in the Lawsuits have any affiliation with
GCRMC. Although the physicians are no longer with GCRMC, GCRMC's
potential exposure in connection with the Lawsuits remains and
poses a significant threat to its ability to effectively carry out
its mission. As the sole community healthcare provider in Otero
County, the pendency of the Lawsuits has affected GCRMC's ability
to raise the funds necessary to continue to meet the current and
future healthcare needs of the community.
GCRMC disputes the claims asserted in the Lawsuits, but recognizes
that it faces significant uncertainty as well as administrative
and financial burdens in defending the Lawsuits.
M Waikiki LLC filed for Chapter 11 protection in Aug. 31, 2011,
with the U.S. Bankruptcy Court for the District of Hawaii
(Honolulu), case number 11-02371, before Judge Robert J. Faris.
The Company listed estimated assets and liabilities of $100 to
$500 million.
M Waikiki is a Hawaii limited liability company with its principal
place of business located in San Diego, California. It is a
special purpose entity, having roughly 75 indirect investors,
which was formed to acquire The MODERN Honolulu, a 353-room luxury
hotel.
The filing follows a court decision granting a temporary
restraining order to allow Marriott International Inc. to resume
its operation of the property. The Chapter 11 filing now allows M
Waikiki to reaffirm the termination of the management agreement
with Marriott and continue to employ new management at the
property. M Waikiki LLC had installed new management this weekend
at The MODERN Honolulu, formerly known as the Waikiki Edition.
2011 Large Chapter 11 Cases
$100MM $500MM
Month - $500MM $1BB > $1BB Prepacks Total
----- -------- ------ ------ -------- -----
January 6 0 0 3 6
February 3 1 2 0 6
March 4 2 0 3 6
April 7 1 0 2 8
May 5 1 0 0 6
June 6 2 0 2 8
July 2 1 0 0 3
August 5 0 0 0 5
In August 2011, there was no prepackaged Chapter 11 mega case.
For the first eight months of 2011, 10 of the 48 mega cases
involved a prepackaged Chapter 11 plan as of the Petition Date --
or about 21% of the large Chapter 11 filings. For fiscal year
2010, a total of 35 prepacks/pre-arranged cases were filed --
about one in every three filings in 2010.
Of the mega cases filed during the first eight months of 2011,
nine were engaged in accommodation and food services, seven each
were in manufacturing and retail trade, six were in information,
and five were into real estate.
Of the August mega cases, one each went to Delaware, Nevada, New
Mexico, Eastern District of California, and Hawaii. For the first
eight months of 2011, 23 mega-cases went to Delaware and 9 went to
the Southern District of New York. The rest were distributed
among various bankruptcy courts throughout the U.S.
Lehman Brothers Holding Corp. remains the biggest corporate bust
in history. Lehman, which filed in 2008, had $639 billion in
total assets and $613 billion in total debts at that time of its
filing.
So far this year, the largest Chapter 11 filing was by MSR Resort
Golf Course LLC, which has $2.2 billion in assets and $1.9 billion
in debt as of Nov. 30, 2010. MSR Resort Golf Course and its
affiliates own and operate five iconic luxury resort properties
with related real estate properties and amenities. 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. MSR and
its affiliates filed for Chapter 11 protection with the Bankruptcy
Court for the Southern District of New York on Feb. 1, 2011, Lead
Case No. 11-10372.
* All Bankruptcy Types Continue Falling in August
-------------------------------------------------
Bill Rochelle, the bankruptcy columnist for Bloomberg News,
reports that bankruptcies of all types continued falling in
August.
Bankruptcy filings in August came in at the second-lowest rate
this year. For the month, filings totaled 135,700, or 4.6% below
July's rate, according to data compiled from court records by Epiq
Systems Inc.
Filings in August were 14.8% fewer than the same month last year,
at a daily rate. Total filings are on pace to come in at about
1.44 million this year, or 7.5% fewer than 2010.
As before, commercial filings are dropping even faster. In
August, commercial bankruptcy under all chapters were 20% below
August 2010.
Chapter 11 filings, where larger companies reorganize or sell
assets, totaled 918 in August, or 8 percent below the month a year
earlier.
The states with the highest per capita bankruptcies are Nevada,
Georgia and Tennessee, unchanged from July. Bankruptcies are
declining this year in every state except Delaware, where the
increase is 1%.
There have been 962,300 bankruptcies of all types so far this
year, compared with 1.56 million for all of 2010. Last year had
the most since 2005, when the all-time record was set at 2.1
million. Americans in 2005 were filing bankruptcy in advance of
new laws making it more difficult for individuals to cancel debt.
In the last two weeks before the law changed, 630,000 American
sought bankruptcy protection.
* Avenue Capital Raises Nearly $200M for New Distressed Fund
------------------------------------------------------------
Dow Jones' DBR Small Cap reports that Avenue Capital Group has
closed on nearly $200 million for its latest special situations
fund according to a filing with the Securities and Exchange
Commission.
* Carlyle Group Gets Set for Public Stock Debut
-----------------------------------------------
Dow Jones' DBR Small Cap reports that Carlyle Group LP filed
documents to go public, the latest private-equity powerhouse
hoping to raise millions by capturing the attention of public
investors.
The Carlyle Group -- http://www.carlyle.com/-- is a private
equity firm, with more than $91.5 billion under management. It
has 64 funds across four investment disciplines (buyouts, growth
capital, real estate and leveraged finance) and 535 plus
investment professionals operating out of offices in 21 countries.
* Forty-Three Mintz Levin Attorneys Included in Best Lawyers in US
------------------------------------------------------------------
Forty-three attorneys from Mintz, Levin, Cohn, Ferris, Glovsky and
Popeo, P.C. were recently named in the 2012 edition of The Best
Lawyers in America, a referral guide of United States attorneys.
First published in 1983, The Best Lawyers in America is based on
an annual peer-review survey. For the new U.S. edition, more than
41,000 leading attorneys cast almost 3.9 million votes on the
legal abilities of other lawyers in the same and related
specialties.
The following Mintz Levin attorneys were selected in their
respective practice areas for 2012:
Boston
--------------------------------------------------------
Lawrence D. Bastone - Immigration Law
Alden J. Bianchi - Employee Benefits (ERISA) Law
Daniel S. Bleck - Bankruptcy and Creditor-Debtor
Rights/Insolvency and Reorganization Law
Joseph Blute - Product Liability Litigation
Meghan B. Burke - Public Finance Law
Ralph A. Child - Environmental Law; Litigation -
Environmental
Susan J. Cohen - Immigration Law
Thomas S. Crane - Health Care Law
Deborah A. Daccord - Health Care Law
Michael L. Fantozzi - Securities/Capital Markets Law
William M. Hill - Construction Law; Litigation -
Construction
Anthony E. Hubbard - Non-Profit/Charities Law
Ellen L. Janos - Health Care Law
William W. Kannel - Bankruptcy and Creditor-Debtor
Rights/Insolvency and Reorganization Law; Litigation
- Bankruptcy
Jonathan L. Kravetz - Biotechnology Law;
Securities/Capital Markets Law; Securities
Regulation; Technology Law
Kim V. Marrkand - Insurance Law
Richard E. Mikels - Bankruptcy and Creditor-Debtor
Rights/Insolvency and Reorganization Law; Litigation
- Bankruptcy
Peter M. Miller - Trusts and Estates
Tracy A. Miner - Criminal Defense: White-Collar
Frederick J. Pittaro - Real Estate Law
R. Robert Popeo - Bet-the-Company Litigation;
Commercial Litigation; Corporate Governance Law;
Criminal Defense: White-Collar; Litigation -
Regulatory Enforcement (SEC, Telecom, Energy)
Jeffrey R. Porter - Environmental Law; Litigation -
Environmental
Paul J. Ricotta - Bankruptcy and Creditor-Debtor
Rights/Insolvency and Reorganization Law; Litigation
- Bankruptcy
Gregory A. Sandomirsky - Public Finance Law
Maxwell D. Solet - Litigation & Controversy - Tax;
Public Finance Law, Tax Law
Samuel M. Starr - Litigation - Construction
Stephen M. Weiner - Health Care Law
Jeffrey M. Wiesen - Biotechnology Law; Corporate Law;
Mergers & Acquisitions Law
New York
-------------------------------------------------------
Richard H. Block - Litigation - Labor & Employment
Robert I. Bodian - Commercial Litigation; Litigation
- Banking & Finance; Litigation - Bankruptcy;
Litigation - Labor & Employment; Litigation -
Securities
Peter A. Chavkin - Criminal Defense: White Collar
Stuart Hirshfield - Bankruptcy and Creditor-Debtor
Rights/Insolvency and Reorganization Law; Litigation
- Bankruptcy
David R. Lagasse - Employment Law - Management;
Litigation - Labor & Employment
Joel I. Papernik - Corporate Law
Andrew B. Roth - Health Care Law
Jeremy A. Spector - Public Finance Law
San Diego
------------------------------------------------------
Jeffry A. Davis - Bankruptcy and Creditor-Debtor
Rights/Insolvency and Reorganization Law; Litigation
- Bankruptcy
John Giust - Litigation - Patent
Mitchell L. Lathrop - Insurance Law
Washington, D.C.
-----------------------------------------------------
Bruce D. Sokler - Antitrust Law
Charles D. Ferris - Communications Law
Hope S. Foster - Health Care Law
Howard J. Symons - Communications Law
* Weil Scores Restructuring Ace from Jones Day
----------------------------------------------
Samuel Howard at Bankruptcy Law360 reports that Weil Gotshal &
Manges LLP announced Wednesday it had scored another rainmaker
from Jones Day to anchor its growing restructuring practice in
London.
Law360 relates that Paul Bromfield is joining the firm with a
practice that includes roles in numerous front-page insolvencies
and complex cross-border restructurings.
"Having additional partner resource in London is key to our goal
of building out the European restructuring team," said head of the
London restructuring practice Adam Plainer.
* Top Judge Pushes for Bankruptcy Venue Reform
----------------------------------------------
Hilary Russ at Bankruptcy Law360 reports that Massachusetts' top
bankruptcy judge told federal lawmakers Thursday that the current
venue selection process -- in which many companies file in
Delaware and New York instead of where they're headquartered --
undermines confidence in the system when creditors and others
struggle to participate in faraway proceedings.
Law360 relates that testifying before a subcommittee of the House
Judiciary Committee about proposed legislation that would reform
the rules governing venue selection, Chief Judge Frank J. Bailey
said other courts around the country were perfectly capable of
handling complicated bankruptcies.
* Bankr. Judge Edward Godoy Gets 14-Year Term of Office
-------------------------------------------------------
The U.S. Court of Appeals for the First Circuit appointed
Bankruptcy Judge Edward A. Godoy to a 14-year term of office --
through Aug. 31, 2025 -- at Puerto Rico, at Ponce, effective
Sept. 1, 2011.
* BOND PRICING -- For Week From Sept. 5 - 9, 2011
-------------------------------------------------
Company Coupon Maturity Bid Price
------- ------ -------- ---------
ABIBB-CALL09/11 5.350 5/15/2023 100.050
ACARS-GM 8.100 6/15/2024 1.000
AHERN RENTALS 9.250 8/15/2013 34.500
AM AIRLN PT TRST 7.858 10/1/2011 98.050
AMBAC INC 9.375 8/1/2011 10.000
AMBAC INC 9.500 2/15/2021 12.000
AMBAC INC 7.500 5/1/2023 10.000
AMBAC INC 5.950 12/5/2035 11.500
AMBAC INC 6.150 2/7/2087 1.480
AMER GENL FIN 4.800 9/15/2011 99.692
AMER GENL FIN 8.100 9/15/2011 99.000
AMERICAN EXPRESS 5.250 9/12/2011 99.963
AQUILEX HOLDINGS 11.125 12/15/2016 40.000
AVALONBAY COMMUN 6.625 9/15/2011 100.409
BANK NEW ENGLAND 8.750 4/1/1999 14.000
BANK NEW ENGLAND 9.875 9/15/1999 14.000
BANKUNITED FINL 6.370 5/17/2012 7.100
BLOCKBUSTER INC 11.750 10/1/2014 3.750
CAPMARK FINL GRP 5.875 5/10/2012 55.750
C-CALL09/11 5.500 11/15/2029 100.000
CIRCUS & ELDORAD 10.125 3/1/2012 80.900
CONAGRA INC 6.750 9/15/2011 100.050
DECODE GENETICS 3.500 4/15/2011 0.500
DIRECTBUY HLDG 12.000 2/1/2017 34.250
DIRECTBUY HLDG 12.000 2/1/2017 34.750
DUNE ENERGY INC 10.500 6/1/2012 55.000
EDDIE BAUER HLDG 5.250 4/1/2014 5.625
ENERGY CONVERS 3.000 6/15/2013 37.000
EVERGREEN SOLAR 4.000 7/15/2013 6.100
EVERGREEN SOLAR 13.000 4/15/2015 59.750
EVERGREEN SOLAR 4.000 7/15/2020 13.000
FAIRPOINT COMMUN 13.125 4/2/2018 1.250
FIRST IND LP 4.625 9/15/2011 99.681
FORD MOTOR CO 9.500 9/15/2011 100.000
GLB AVTN HLDG IN 14.000 8/15/2013 45.833
GLOBALSTAR INC 5.750 4/1/2028 59.750
GMAC LLC 6.875 9/15/2011 99.995
GREAT ATLA & PAC 6.750 12/15/2012 20.875
HARRY & DAVID OP 9.000 3/1/2013 2.000
HAWKER BEECHCRAF 8.500 4/1/2015 48.715
HAWKER BEECHCRAF 9.750 4/1/2017 38.000
HCP INC 5.950 9/15/2011 100.035
HORIZON LINES 4.250 8/15/2012 76.500
ISTAR FINANCIAL 5.650 9/15/2011 99.920
LEHMAN BROS HLDG 6.625 1/18/2012 24.500
LEHMAN BROS HLDG 5.250 2/6/2012 23.500
LEHMAN BROS HLDG 6.000 7/19/2012 24.500
LEHMAN BROS HLDG 3.000 10/28/2012 25.125
LEHMAN BROS HLDG 3.000 11/17/2012 24.250
LEHMAN BROS HLDG 5.000 1/22/2013 22.000
LEHMAN BROS HLDG 5.625 1/24/2013 25.000
LEHMAN BROS HLDG 5.100 1/28/2013 21.625
LEHMAN BROS HLDG 5.000 2/11/2013 23.500
LEHMAN BROS HLDG 4.800 2/27/2013 25.500
LEHMAN BROS HLDG 4.700 3/6/2013 21.000
LEHMAN BROS HLDG 5.000 3/27/2013 21.500
LEHMAN BROS HLDG 5.750 5/17/2013 24.500
LEHMAN BROS HLDG 5.250 1/30/2014 24.250
LEHMAN BROS HLDG 4.800 3/13/2014 24.000
LEHMAN BROS HLDG 5.000 8/3/2014 25.300
LEHMAN BROS HLDG 6.200 9/26/2014 25.250
LEHMAN BROS HLDG 5.150 2/4/2015 25.000
LEHMAN BROS HLDG 5.250 2/11/2015 25.250
LEHMAN BROS HLDG 8.800 3/1/2015 24.000
LEHMAN BROS HLDG 7.000 6/26/2015 23.500
LEHMAN BROS HLDG 8.500 8/1/2015 22.000
LEHMAN BROS HLDG 5.000 8/5/2015 22.000
LEHMAN BROS HLDG 7.000 12/18/2015 25.625
LEHMAN BROS HLDG 5.500 4/4/2016 24.000
LEHMAN BROS HLDG 5.875 11/15/2017 22.500
LEHMAN BROS HLDG 5.600 1/22/2018 21.500
LEHMAN BROS HLDG 5.700 1/28/2018 22.650
LEHMAN BROS HLDG 6.000 2/12/2018 21.500
LEHMAN BROS HLDG 5.500 2/19/2018 22.000
LEHMAN BROS HLDG 6.875 5/2/2018 24.200
LEHMAN BROS HLDG 8.050 1/15/2019 22.000
LEHMAN BROS HLDG 7.000 4/16/2019 23.500
LEHMAN BROS HLDG 8.500 6/15/2022 22.375
LEHMAN BROS HLDG 11.000 6/22/2022 23.500
LEHMAN BROS HLDG 11.000 7/18/2022 23.500
LEHMAN BROS HLDG 11.500 9/26/2022 22.000
LEHMAN BROS HLDG 9.500 12/28/2022 25.750
LEHMAN BROS HLDG 9.500 1/30/2023 22.625
LEHMAN BROS HLDG 9.500 2/27/2023 21.250
LEHMAN BROS HLDG 9.000 3/7/2023 19.775
LEHMAN BROS HLDG 10.000 3/13/2023 25.125
LEHMAN BROS HLDG 18.000 7/14/2023 25.750
LEHMAN BROS HLDG 10.375 5/24/2024 23.500
LEHMAN BROS HLDG 11.000 3/17/2028 25.497
LEHMAN BROS INC 7.500 8/1/2026 15.000
LIFEPT VILGE 8.500 3/19/2013 49.500
LOCAL INSIGHT 11.000 12/1/2017 2.250
MACYS RETAIL HLD 7.450 9/15/2011 100.143
MAJESTIC STAR 9.750 1/15/2011 5.000
MDT-CALL09/11 1.250 9/15/2021 99.000
MOHEGAN TRIBAL 8.000 4/1/2012 70.925
NEBRASKA BOOK CO 8.625 3/15/2012 60.700
NEWPAGE CORP 10.000 5/1/2012 12.000
NEWPAGE CORP 12.000 5/1/2013 2.875
PMI CAPITAL I 8.309 2/1/2027 9.000
PMI GROUP INC 6.000 9/15/2016 28.500
REAL MEX RESTAUR 14.000 1/1/2013 82.500
RESTAURANT CO 10.000 10/1/2013 10.000
RIVER ROCK ENT 9.750 11/1/2011 78.000
S0-CALL09/11 5.500 12/15/2028 99.610
SBARRO INC 10.375 2/1/2015 6.800
SO-CALL09/11 5.400 3/1/2033 100.000
TEXAS COMP/TCEH 7.000 3/15/2013 29.000
TEXAS COMP/TCEH 10.250 11/1/2015 38.375
THORNBURG MTG 8.000 5/15/2013 12.000
TIMES MIRROR CO 7.250 3/1/2013 44.900
TOUSA INC 9.000 7/1/2010 15.000
TRICO MARINE 3.000 1/15/2027 1.250
TRICO MARINE SER 8.125 2/1/2013 4.000
UNITED DOM RLTY 3.625 9/15/2011 99.811
UNITED DOM RLTY 3.625 9/15/2011 100.040
VIRGIN RIVER CAS 9.000 1/15/2012 51.000
WCI COMMUNITIES 4.000 8/5/2023 1.570
WESCO INTL 1.750 11/15/2026 89.000
WILLIAM LYON INC 10.750 4/1/2013 27.030
WILLIAM LYON INC 7.500 2/15/2014 23.000
WILLIAM LYONS 7.625 12/15/2012 30.000
WINDERMERE BAPT 7.700 5/15/2012 18.000
*********
Monday's edition of the TCR delivers a list of indicative prices
for bond issues that reportedly trade well below par. Prices are
obtained by TCR editors from a variety of outside sources during
the prior week we think are reliable. Those sources may not,
however, be complete or accurate. The Monday Bond Pricing table
is compiled on the Friday prior to publication. Prices reported
are not intended to reflect actual trades. Prices for actual
trades are probably different. Our objective is to share
information, not make markets in publicly traded securities.
Nothing in the TCR constitutes an offer or solicitation to buy or
sell any security of any kind. It is likely that some entity
affiliated with a TCR editor holds some position in the issuers"
public debt and equity securities about which we report.
Each Tuesday edition of the TCR contains a list of companies with
insolvent balance sheets whose shares trade higher than $3 per
share in public markets. At first glance, this list may look like
the definitive compilation of stocks that are ideal to sell short.
Don't be fooled. Assets, for example, reported at historical cost
net of depreciation may understate the true value of a firm's
assets. A company may establish reserves on its balance sheet for
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, 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 ***