/raid1/www/Hosts/bankrupt/TCR_Public/111012.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
Wednesday, October 12, 2011, Vol. 15, No. 283
Headlines
ABCLD HOLDINGS: Court Approves Non-Material Plan Modifications
ALKERMES INC: S&P Assigns 'B+' Corporate Credit Rating
ALLEN FAMILY: Committee Retains AEI as Appraisers
ALLIANCE BEARING: Case Summary & 20 Largest Unsecured Creditors
ALLIS-CHALMERS ENERGY: S&P Affirms 'B-' Ratings on $505MM Notes
AMERICAN DIAGNOSTIC: Has Until Nov. 1 to File Reorganization Plan
AMERICAN DIAGNOSTIC: Court Sets Oct. 14 Claims Bar Date
ATLANTA MUTUAL: Case Summary & 20 Largest Unsecured Creditors
ATMAN HOSPITALITY: Request to Use Cash Collateral Hits Road Block
AUTUMN BROOK: Case Summary & 7 Largest Unsecured Creditors
BARNES BAY: J. Simon, et al., Seek Dismissal of Chapter 11 Case
BARNWELL COUNTY: Files for Chapter 9 in South Carolina
BERNARD L. MADOFF: Trustee Seeks Quick Appeal on Wilpon Ruling
BELLMARK RECORDS: Ex-Motown Head Says He Kept Copyrights
BERNARD L. MADOFF: Former Unit Closes After Failing to Find Buyer
BILL HEARD: Holler-Classic to Build Auto Mall in Sanford
BLOCKBUSTER INC: Court Authorizes K&L as Special IP Counsel
BLOCKBUSTER INC: Employs V & E as Litigation Counsel
BORDERS GROUP: Wins Nod of Torrance Borders Agreement
BORDERS GROUP: Hilco Streambank Has $1.2MM Commission from IP Sale
BORDERS GROUP: Withdraws Application to Hire Mortgage Corp.
BRITT MOTORSPORTS: Case Summary & 20 Largest Unsecured Creditors
BRIXMOR LLC: S&P Lifts Corp. Rating to 'B; Off Watch Positive
CAMBODIANA INC: Files for Chapter 11 Bankruptcy Protection
CAMTECH PRECISION: Avstar Has Until Nov. 5 to Solicit Plan Votes
CANDLELIGHT PROPERTIES: Case Summary & 20 Largest Unsec. Creditors
CAPITAL HOME: Cash Collateral Hearing Continued Until Oct. 18
CAPITAL HOME: Case Dismissal Hearing Continued Until Oct. 18
CAPMARK FINANCIAL: Emerges From Chapter 11 Bankruptcy Protection
CARTER MCRAE: Defaults on Court-Ordered Payments
CHEF SOLUTIONS: Meeting to Form Creditors Committee Today
CHRISTIAN BROTHERS: Court Approves Re/Max 10 as Real Estate Broker
CHRYSLER GROUP: UAW Begin Finalizing Details of Labor Contract
COALINGA REDEVELOPMENT: S&P Lowers Rating on Tax Bonds to 'BB'
COMPASS GROUP: S&P Revises Rating on $275-Mil. Credit to 'BB+'
CONGRESSIONAL HOTEL: Gets OK to Hire James M. Greenan as Counsel
CRAWFORD FURNITURE: Files Schedules of Assets and Liabilities
CURTIS NELSON: Judge Converts Case to Chapter 7 Liquidation
D/K MECHANICAL: Case Summary & 20 Largest Unsecured Creditors
DAVIDSON HYDRANT: Case Summary & 20 Largest Unsecured Creditors
DEE RANDALL: Court Appoints Forensic Accountant to Take Over Biz
DGB CONTRACTOR: Case Summary & 20 Largest Unsecured Creditors
EAST HARLEM: Wants Receiver to Turnover Books, Records & Documents
EVERGREEN SOLAR: DOE Seeks to Place Shield on Assets
EVERGREEN SOLAR: Common Stock Quoted on Pink Sheets under "ESRLQ"
FIRSTBANK PUERTO RICO: S&P Hikes Counterparty Rating to 'B+'
FRIENDLY ICE CREAM: Meeting to Form Creditors Committee Today
GAC STORAGE: Voluntary Chapter 11 Case Summary
GARLOCK SEALING: Denied Access to Docs in Asbestos Bankruptcies
GLOBAL CROSSING: S&P Withdraws 'B' Corporate Credit Rating
GRACEWAY PHARMACEUTICALS: Meeting to Form Creditors Panel Oct. 11
GRACEWAY PHARMACEUTICALS: S&P Withdraws 'D' Corp. Credit Rating
GSC GROUP: Bankruptcy Judge Approves Disclosure Statement
GSC GROUP: Trustee Wants Epiq to Prepare Solicitation Packages
HARBOUR EAST: FBS Work Now Includes 2011 Property Tax
HAYES LEMMERZ: S&P Puts 'B' Credit Rating on Watch Developing
HIGHLAND ESTATES: Case Summary & 20 Largest Unsecured Creditors
HMC/CAH CONSOLIDATED: 12 Hospitals Seek Ch. 11 Protection
HOTEL AIRPORT: Employs RS & Associates as External Auditor
HUDSON HEALTHCARE: MedAssets Says Hoboken City Deal Unnecessary
IMUA BLUEHENS: Hearing on Cash Coll. Deal Continued Until Oct. 28
INNKEEPERS USA: Said to Be Near Settlement With Cerberus, Chatham
INNKEEPERS USA: Cerberus Negotiating Scaled-Down Deal for Hotels
JC CANDLELIGHT: Case Summary & 8 Largest Unsecured Creditors
J.C. EVANS: First State Wants $23.5MM Credit Bid for Assets
JCK HOTELS: Court Rejects LBUBS' Plea to Dismiss Chapter 11 Case
JG WENTWORTH: S&P Assigns 'B' Counterparty Credit Rating
JOHN KEMPER: 2009 Bankruptcy Surfaces in Auditor Race
KINETIC CONCEPTS: S&P Assigns 'B' Sr. Secured Issue-Level Rating
LA VILLITA: Judge King Disqualifies Oppenheimer as Counsel
LEHMAN BROTHERS: Proposes to Hire Krebsbach as Special Counsel
LEHMAN BROTHERS: Discovery on Suit vs. JPM Ends Jan. 27
LEHMAN BROTHERS: LBI Trustee Opposes Lehman Europe's $8.9BB Claim
LEHMAN BROTHERS: Barclays and BofA to Sell Stakes in Archstone
LEHMAN BROTHERS: Mazzolin State Law Claims vs. Unit Moved to NY
LIONCREST TOWERS: Cash Collateral Hearing Continued Until Oct. 25
M&M STONE: Files Schedules of Assets and Liabilities
M&M STONE: Meeting to Form Creditors Committee on Oct. 17
M WAIKIKI: Court Approves Klevansky Piper as General Counsel
MAJESTIC CAPITAL: Board Aims to Proceed With Litigation
MAQ MANAGEMENT: Files Liquidation Plans for Super Stop Units
MEDIMPACT HOLDINGS: Moody's Cuts Corp. Family Rating to 'Caa2'
MERIT GROUP: Disclosure Statement Hearing Set for Nov. 1
MOORE SORRENTO: Wells Fargo Wants Accounting of Cash Use
MSR RESORT: Reaches Deal With Mezzanine Lender
NEW KENT: Owes Colonial Virginia Bank $1 Million
NEWPAGE CORP: S&P Rates $350-Mil. DIP ABL Facility at 'BB+'
NORMAN REGIONAL: Fitch Affirms Ratings on Four Bonds at 'BB+'
NORTEL NETWORKS: Committee Hires Alvarez & Marsal as Fin'l Advisor
OJ GENERAL: Case Summary & 17 Largest Unsecured Creditors
OPEN RANGE: Owes $73.5 Million in Loan to Agriculture Dept.
PACIFIC AVENUE: Committee Objects to Sunset Management Claim
PENINSULA HOSPITAL: U.S. Trustee Wants Revival DIP Loans Denied
POST STREET: Files Chapter 11 Plan of Reorganization
PREMIER TRAILER: Court Approves Lazard as Investment Banker
PUBLIC MEDIA: M. Greenwald Resigns as CEO; Replaced by J. Hackett
PURE BEAUTY SALONS: Meeting to Form Creditors Committee on Oct. 18
REAL MEX: Meeting to Form Creditors Committee on Oct. 14
REITTER CORP: Gets 28 More Days to File Amended Disclosures
ROBERTS BROADCASTING: Files for Chapter 11 Bankruptcy Protection
ROCK & REPUBLIC: Court Rejects Quetico's $6MM Admin. Claim
RUMSEY LAND: Buyer Says Case Dismissal "Premature"
SAINT VINCENTS: Has Until Thursday to Propose Chapter 11 Plan
SHENGDATECH INC: Committee Taps Hogan Lovells as Counsel
SHENGDATECH INC: Still Has No Access to Data on China Subsidiaries
SHENGDATECH INC: Files Schedules of Assets and Liabilities
SOLYNDRA LLC: No Longer Threatened With Quick Liquidation
SOLYNDRA LLC: White House Sends Solyndra E-mails to Congress
SOLYNDRA LLC: Bankruptcy Cues DOE Executive to Resign
SPECTRAWATT INC: Judge OKs Canadian Solar to Acquire Assets
SPECTRAWATT INC: Court Sets Nov. 22 as Claims Bar Date
SPRINT NEXTEL: S&P Puts 'BB-' Corp. Credit Rating on Watch Neg.
TEGRANT CORP: S&P Puts 'CCC+' CCR on Watch Positive
THIRD STREET: Files for Chapter 11 Bankruptcy Protection
TOWN CENTER AT DORAL: Files Schedules of Assets and Liabilities
TOWN CENTER AT DORAL: Section 341(a) Meeting Scheduled for Oct. 21
TOWN CENTER AT DORAL: Hires Bilzin Sumberg as Bankruptcy Counsel
TRANSWEST RESORT: To Seek Plan Confirmation on Monday
TRIPLE POINT: S&P Affirms 'B' Corporate Credit Rating
UNITED CONTINENTAL: S&P Affirms 'B' Corporate Credit Rating
UNIVERSAL CITY: S&P Withdraws 'BB-' Corporate Credit Rating
WJO INC: Committee Wants Cash Collateral Stipulation Modified
WJO INC: Tristate, Committee Wants Exclusivity Extension Denied
* Corporate Bankruptcy Filings Fall to Lowest Level Since 2008
* Insured's Bankruptcy Doesn't Let Insurer Off the Hook
* Apollo Markets Latest European Nonperforming Loan Fund
* H.I.G. Expands Credit Platform With WhiteHorse Purchase
* Upcoming Meetings, Conferences and Seminars
*********
ABCLD HOLDINGS: Court Approves Non-Material Plan Modifications
--------------------------------------------------------------
The U.S. Bankruptcy Court for the Northern District of Texas
authorized ABCLD Holdings, LLC, to make non-material modifications
to its Plan of Reorganization.
As reported in the Troubled Company Reporter on Sept. 22, 2011,
the Debtor, and secured creditor Armed Forces Bank, as joint
proponents, asked the Court to accept a modified Plan.
The Plan Proponents also asked the Court to consider the First
Amended Plan of Reorganization based on the previously distributed
Disclosure Statement and previously cast ballots of creditors.
Certain of the prepetition loans between AFB and the Debtor were
participated with another financial institution. As a result of
negotiations between AFB and the participant in the loan
concerning generally accepted accounting principles, it became
apparent that a change in the Plan would be required to break the
one consolidated note into two notes. As a result of this change,
the Debtor and AFB have determined to modify the Plan to
adequately describe the modified structure.
The modified structure of the Loan between the Debtor and AFB,
specifically, splitting the $40 million dollar note into two
separate notes, has been incorporated in the First Amended Plan of
Reorganization. The changes incorporated in the Amended Plan do
not affect creditors other than AFB.
The Court approved the incorporation of these modifications to the
Amended Plan:
Armed Forces Bank is an impaired secured creditor holding a
Class 4 secured claim. AFB has voted for the Plan and the Plan
as amended. AFB's loan to the Debtor was participated with
another financial institution prepetition. As a result of
postpetition negotiations, AFB and the Debtor have modified the
plan of reorganization. Under the amended Plan, the Debtor
will issue two notes to satisfy Class 4 under the Plan instead
of one instrument.
The Court also determined that the change to the treatment of
Class 4 creditors does not materially affect any other creditors
that have voted for or against the Plan, and the modification
complies with Sections 1122, 1123, and 1127(a) of the Bankruptcy
Code.
The Court added that no further notice, solicitation, or balloting
is required prior to confirmation of the Amended Plan.
If implemented, the Plan would generally restructure the Debtor's
debt owed to Armed Forces Bank, which totals $40,000,000, and
allow the Debtor to pay its secured ad valorem tax creditors over
time. The Debtor does not have any other creditors, other than
one affiliate who is owed $260,131 based upon the Debtor's and
FRE's original purchase of the Properties.
About ABCLD Holdings
Dallas, Texas-based ABCLD Holdings is a Nevada limited liability
company created on March 18, 2011, to acquire properties owned by
FRE Real Estate Inc. in Texas for $59.8 million. All of the
capital stock of ABCLD Holdings is owned by ABC Land &
Development, Inc., which is a corporation owned by Ronald Akin and
DTS Holdings, LLC. FRE filed for bankruptcy Jan. 4, 2011. The
case was dismissed March 1, 2011.
ABCLD filed for bankruptcy to implement a prepetition settlement
agreement with Armed Forces Bank, as successor by merger to Bank
Midwest, N.A. is the secured creditor with respect to the acquired
FRE Properties. AFB played an active role in obtaining dismissal
of the FRE bankruptcy proceeding. The Agreement contemplates the
foreclosure of certain of the properties, a prepackaged bankruptcy
filing, and the restructuring of the AFB debt.
ABCLD commenced the prepackaged Chapter 11 bankruptcy (Bankr.
N.D. Tex. Case No. 11-34969) on Aug. 1, 2011. Judge Barbara J.
Houser presides over the case. Melissa S. Hayward, Esq., at
Franklin Skierski Lovall Hayward LLP, serves as bankruptcy
counsel to the Debtor. In its petition, the Debtor estimated
assets of $50 million to $100 million and debts of $10 million to
$50 million. The petition was signed by Craig Landess, vice
president. Armed Forces Bank is represented by Keith Miles
Aurzada, Esq., at Bryan Cave LLP.
According to its schedules, the Debtor disclosed $66,579,892 in
total assets and $40,454,914 in total debts.
ALKERMES INC: S&P Assigns 'B+' Corporate Credit Rating
------------------------------------------------------
Standard & Poor's Ratings Services assigned its 'B+' corporate
credit rating to Waltham, Mass.-based Alkermes Inc. "At the same
time, we assigned a 'BB' issue-level and '1' recovery rating to
the first-lien term loan due 2017 and a 'B' issue-level and '5'
recovery rating to the second-lien term loan due 2018. The rating
outlook is stable," S&P stated.
"Our speculative-grade rating on Alkermes Inc. reflects a weak
business risk profile exhibited by the uncertainty associated with
a transformational acquisition, product concentration, dependence
on relatively new, and unproven, product uses to drive expected
growth, susceptibility to the marketing priorities of their
partners, and manufacturing concentration," said Standard & Poor's
credit analyst Michael Berrian. "However, we believe that the
combination of Alkermes and EDT will result in at least mid-single
digit growth over the near-term. Depending upon the level of
success of its relatively new commercialized products, we also
believe that revenue growth could increase to 13% or more in 2014.
Alkermes' aggressive financial risk profile reflects reported pro
forma leverage of 4.7x and funds from operations to total debt of
8.5%, credit measures that we do not expect will significantly
improve within the next year."
Alkermes' acquisition of Elan's drug technology business (EDT) is
the first transformational acquisition for this relatively small
company. The $450 million of debt that Alkermes incurred for the
purchase increases pro forma leverage to 4.7x, which is indicative
of an aggressive financial risk profile. "While we expect the
company to use its free cash flows to reduce debt, we expect
leverage to remain well above 4.0x for the next 12 to 18 months.
Moreover, while we expect the combined company to generate cash
flow, there is uncertainty regarding the potential of newly
approved indications to drive growth. This limits the visibility
of cash flow streams and the pace of debt reduction. The
aggressive financial risk profile also reflects our expectation
that over the next 12 to 18 months funds from operations to total
debt will be 18% and total debt to total capitalization will be
31%," S&P added.
ALLEN FAMILY: Committee Retains AEI as Appraisers
-------------------------------------------------
The Official Committee of Unsecured Creditors of Allen Family
Foods, Inc., et al., has been authorized by the U.S. Bankruptcy
Court for the District of Delaware, to retain Appraisal Economics,
Inc., as appraisers, nunc pro tunc to Aug. 23, 2011, and to waive
certain information requirements of Local Rule 2016-2.
The services to be provided by Appraisal Economics include:
* Completing a comprehensive appraisal of the approximately
1,000 items that comprise the Fixed Assets of the Debtors;
* Appraising the Fixed Assets based on the (i) cost approach
or (ii) market approach valuation methodologies; and
* Providing a detailed valuation report discussing the
important factors considered in preparing a report, which
may include the identification of subject assets; purpose
of the appraisal; intended use of the appraisal; effective
date of the appraisal; methodology; scope of work;
statement of ownership; and evaluation considerations.
Appraisal Economics will be paid $8,000 for the initial appraisal
services, including reimbursement of actual and necessary out-of-
pocket expenses, plus any additional fees that may arise (i) in
the event Appraisal Economics is asked to appraise more than the
initial 1,000 items, (ii) circumstances like litigation mandate a
more through appraisal, or (iii) court appearances are required at
the firm's standard hourly rates. In accordance with the terms of
the engagement letter between the parties, the Appraisal Fee is
due upon completion of the appraisal report.
About Allen Family Foods
Allen Family Foods Inc. is a 92-year-old Seaford, Del., poultry
company. Allen Family Foods and two affiliates, Allen's Hatchery
Inc. and JCR Enterprises Inc., filed for Chapter 11 bankruptcy
protection (Bankr. D. Del. Case No. 11-11764) on June 9, 2011.
Allen estimated assets and liabilities between $50 million and
$100 million in its petition.
Robert S. Brady, Esq., and Sean T. Greecher, Esq., at Young,
Conaway, Stargatt & Taylor, in Wilmington, Delaware, serve as
counsel to the Debtors. FTI Consulting is the financial advisor.
BMO Capital Markets is the Debtors' investment banker. Epiq
Bankruptcy Solutions LLC is the claims and notice agent.
Roberta DeAngelis, U.S. Trustee for Region 3, appointed seven
creditors to serve on an Official Committee of Unsecured Creditors
in the Debtors' cases. Lowenstein Sandler PC and Womble Carlyle
Sandridge & Rice, PLLC, serve as counsel for the committee. J.H.
Cohn LLP serves as the Committee's financial advisor.
ALLIANCE BEARING: Case Summary & 20 Largest Unsecured Creditors
---------------------------------------------------------------
Debtor: Alliance Bearing Industries, Inc.
14745 Arminta Street
Panorama City, CA 91402
Bankruptcy Case No.: 11-21831
Chapter 11 Petition Date: October 6, 2011
Court: United States Bankruptcy Court
Central District of California (San Fernando Valley)
Judge: Alan M. Ahart
Debtor's Counsel: Ian Landsberg, Esq.
LANDSBERG & ASSOCIATES APC
16030 Ventura Blvd., Suite 470
Encino, CA 91436
Tel: (818) 855-5900
Fax: (818) 855-5910
E-mail: ilandsberg@landsberg-law.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
A list of the Company's 20 largest unsecured creditors filed
together with the petition is available for free at
http://bankrupt.com/misc/cacb11-21831.pdf
The petition was signed by Jeff Heller, president.
ALLIS-CHALMERS ENERGY: S&P Affirms 'B-' Ratings on $505MM Notes
-----------------------------------------------=---------------
Standard & Poor's Ratings Services revised its recovery rating on
Allis-Chalmers Energy Inc.'s senior unsecured debt to '3' from
'4', reflecting its S&P's expectation of meaningful (50% to 70%)
recovery for creditors in the event of a payment default. "At the
same time, we affirmed our 'B-' issue rating on the company's
existing $250 million 8.5% senior unsecured notes due 2017 and
$255 million 9.0% senior unsecured notes due 2014. The issue
rating is in line with the corporate credit rating on Allis-
Chalmers. The ratings on Allis-Chalmers are unsolicited," S&P
related.
"The revision of our recovery rating on the unsecured notes is
based on the company's retirement of its senior unsecured
revolving credit facility and an updated valuation of the company
in our distress scenario," S&P said.
"Our ratings on Allis-Chalmers Energy Inc. reflect the company's
position as an oilfield services provider operating in a highly
cyclical and competitive industry, its concentrated customer base,
and high debt leverage. These risk factors are partially offset by
the company's geographic and product diversification," S&P said.
Ratings List
Allis-Chalmers Energy Inc.
Corporate credit rating B-/Stable/--
Recovery Ratings Revised; Issue Ratings Affirmed
To From
$250 mil 8.5% sr unsecd nts due 2017 B- B-
Recovery rating 3 4
$255 mil 9.0% sr unsecd nts due 2014 B- B-
Recovery rating 3 4
This unsolicited rating(s) was initiated by Standard & Poor's. It
may be based solely on publicly available information and may or
may not involve the participation of the issuer. Standard & Poor's
has used information from sources believed to be reliable based on
standards established in its Credit Ratings Information and Data
Policy but does not guarantee the accuracy, adequacy, or
completeness of any information used.
AMERICAN DIAGNOSTIC: Has Until Nov. 1 to File Reorganization Plan
-----------------------------------------------------------------
The Hon. Carol A. Doyle of the U.S. Bankruptcy Court for the
Northern District of Illinois extended American Diagnostic
Medicine, Inc.'s exclusive periods to file and solicit acceptances
for the proposed chapter 11 plan of reorganization until Nov. 1,
2011.
The Debtor needed additional time to negotiate the terms of a
consensual plan with its secured creditors and the Official
Committee of Unsecured Creditors. The Committee and secured
creditor Cardinal Health 414, LLC, had consented to the extension.
About American Diagnostic
Batavia, Illinois-based American Diagnostic Medicine Inc. provides
imaging technologies to hospitals, clinics, cardiologists,
internal medicine groups and other health care providers
throughout the United States. It filed for Chapter 11 bankruptcy
protection (Bankr. N.D. Ill. Case No. 11-03368) on Jan. 28, 2011.
Joshua D. Greene, Esq., and Michael J. Davis, Esq., at Springer,
Brown, Covey, Gaetner & Davis, serve as the Debtor's bankruptcy
counsel. In its schedules, the Debtor disclosed $11.3 million in
total assets and $11.1 million in total debts.
An Official Committee of Unsecured Creditors has been appointed in
the case. The Committee has hired K&L Gates LLP as its counsel.
AMERICAN DIAGNOSTIC: Court Sets Oct. 14 Claims Bar Date
-------------------------------------------------------
The Hon. Carol A. Doyle of the U.S. Bankruptcy Court for the
Northern District of Illinois ordered that claims of any
governmental unit that arose before the bankruptcy filing of
American Diagnostic Medicine Inc. and claims based on the
rejection of a lease or executory contract must be filed by
Oct. 14, 2011. All claims must be filed at:
Clerk of the U.S. Bankruptcy Court
219 South Dearborn Street, Room 13
Chicago, Illinois 60604
About American Diagnostic
Batavia, Illinois-based American Diagnostic Medicine Inc. provides
imaging technologies to hospitals, clinics, cardiologists,
internal medicine groups and other health care providers
throughout the United States. It filed for Chapter 11 bankruptcy
protection (Bankr. N.D. Ill. Case No. 11-03368) on Jan. 28, 2011.
Joshua D. Greene, Esq., and Michael J. Davis, Esq., at Springer,
Brown, Covey, Gaetner & Davis, serve as the Debtor's bankruptcy
counsel. In its schedules, the Debtor disclosed $11.3 million in
total assets and $11.1 million in total debts.
An Official Committee of Unsecured Creditors has been appointed in
the case. The Committee has hired K&L Gates LLP as its counsel.
ATLANTA MUTUAL: Case Summary & 20 Largest Unsecured Creditors
-------------------------------------------------------------
Debtor: Atlanta Mutual Housing Association, Inc.
1720 Peachtree St. NW #929
Atlanta, GA 30309
Bankruptcy Case No.: 11-79164
Chapter 11 Petition Date: October 6, 2011
Court: United States Bankruptcy Court
Northern District of Georgia (Atlanta)
Judge: Joyce Bihary
Debtor's Counsel: G. Frank Nason, IV, Esq.
LAMBERTH, CIFELLI, STOKES ELLIS & NASON
Ste 550
3343 Peachtree Rd., NE
Atlanta, GA 30326
Tel: (404) 262-7373
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/ganb11-79164.pdf
The petition was signed by Ron Walker, chief executive officer.
ATMAN HOSPITALITY: Request to Use Cash Collateral Hits Road Block
-----------------------------------------------------------------
David Brenda at the Record Searchlight reports that Far East
National Bank objects to the request of Atman Hospitality Group to
use cash collateral on a long-term basis.
Atman Hospitality Group has asked the Bankruptcy Court for
permission to use cash collateral -- the day-to-day money coming
into the Gaia Hotel in Anderson -- to pay wages, taxes, maintain
the property, and pay the expenses associated with its Chapter 11
case as it attempts to reorganize its debt.
According to the report, Far East National Bank says Atman
Hospitality Group has failed to provide sufficient information,
including a budget that includes how it would pay wages and taxes
while also making "adequate protection payments" to the bank.
Mr. Brenda relates that the bank said the cash collateral should
only be used on a "very short-term basis" while it ensures Atman
Hospitality Group is spending the money appropriately.
Mr. Brenda notes a hearing on this matter is scheduled for
Nov. 15, 20911.
Mr. Brenda adds the court has authorized Atman Hospitality Group
to pay the wages owed to hotel employees before it filed for
bankruptcy. The Gaia has 38 employees.
Based in Sunnyvale, California, Atman Hospitality Group Inc. dba
Gaia Shasta Hotel filed for Chapter 11 protection (Bankr. E.D.
Calif. Case No. 11-42576) on Sept. 19, 2011. Judge Thomas Holman
presides over the case. G. Michael Williams, Esq., at Ganzer &
Williams, represents the Debtor. The Debtor estimated assets of
between $1 million and $10 million, and debts of between
$10 million and $50 million.
AUTUMN BROOK: Case Summary & 7 Largest Unsecured Creditors
----------------------------------------------------------
Debtor: Autumn Brook, LLC
323 Walnut Street
Statesville, NC 28677
Bankruptcy Case No.: 11-51238
Chapter 11 Petition Date: October 7, 2011
Court: United States Bankruptcy Court
Western District of North Carolina (Wilkesboro)
Judge: J. Craig Whitley
Debtor's Counsel: Glenn C. Thompson, Esq.
HAMILTON STEPHENS STEELE & MARTIN
201 S. College St., Suite 2020
Charlotte, NC 28244-2020
Tel: (704) 227-1067
Fax: (704) 344-1483
E-mail: gthompson@lawhms.com
Scheduled Assets: $2,134,416
Scheduled Debts: $1,574,695
A list of the Company's seven largest unsecured creditors filed
together with the petition is available for free at
http://bankrupt.com/misc/ncwb11-51238.pdf
The petition was signed by Michael H. Johnson, member-manager.
BARNES BAY: J. Simon, et al., Seek Dismissal of Chapter 11 Case
---------------------------------------------------------------
Jonathan Simon and W.O. Viceroy I Ltd., two prospective buyers,
ask the U.S. Bankruptcy Court for the District of Delaware to
dismiss the Chapter 11 case of Barnes Bay Development Ltd.
Donald J. Detweiler, Esq., at Pepper Hamilton LLP, in Wilmington,
Delaware, notes that the Debtor's Chapter 11 Plan of Liquidation
was denied confirmation by the Court and the Debtor has not yet
filed a modified Plan.
In addition, Mr. Detweiler contends that Starwood Capital Group,
the secured lender that the rejected Plan, is not willing to fund
a modified Plan or any other Plan proposed by the Debtor. He also
notes that the DIP credit facility is fully drawn.
Mr. Simon's and W.O. Viceroy's request is joined by Jeff Cook and
Anguilla RE LLC.
Creditors' Committee Seeks Adjournment
The Official Committee of Unsecured Creditors argues that the
dismissal request should be adjourned for a period of time in
order to afford the parties, including the Plan Proponents and
Starwood, an opportunity to reflect on the Court's oral ruling
concerning denial of confirmation of the Plan. The Committee says
that it is hopeful that an opportunity may exist for a discussion
of a resolution of these cases without the need for an immediate
dismissal.
Accordingly, the Committee asks that the Court refrain from
issuing an order on the Request for a period of time in order to
afford the Parties an opportunity to react to the Court's ruling
on Confirmation of the Plan and to continue discussing
alternatives to dismissal.
However, to the extent that the Court issues an order dismissing
these cases, the Committee asks that the dismissal should be
conditional, providing for the requirement that Starwood enter
into written agreements to honor any Purchase and Sale Agreements
entered into by the Creditors who elected the Purchase Option
pursuant to the terms of the Plan.
About Barnes Bay
Beverly Hills, California-based Barnes Bay Development Ltd., owns
the Viceroy Anguilla Resort & Residences on the British West
Indies island of Anguilla. Barnes Bay and two affiliates filed
for Chapter 11 bankruptcy protection (Bankr. D. Del. Lead Case No.
11-10792) on March 17, 2011, to facilitate the sale of the resort.
Barnes Bay disclosed $3,331,282 in assets and $481,840,435 in
liabilities as of the Chapter 11 filing.
Akin Gump Straus Hauer & Feld LLP is the Debtors' bankruptcy
counsel, and Keithley Lake & Associates is the Debtors' special
Anguillan counsel. Kurtzman Carson Consultants LLC is the
Debtors' claims, noticing, solicitation and balloting agent.
The U.S. Trustee appointed five members to the official committee
of unsecured creditors in the Debtors' cases. Brown Rudnick LLP
serves as the Committee's co-counsel, and Womble Carlyle
Sandridge & Rice, PLLC, as its Delaware co-counsel. C.R. Hodge &
Associates is the Committee's foreign counsel. FTI Consulting,
Inc., serves as the Committee's financial advisors.
U.S. Bankruptcy Judge Peter J. Walsh in Delaware in September said
that he wouldn't approve the resort's reorganization plan because
it unfairly discriminated among creditors who put down deposits to
buy units. Barnes Bay has not filed a revised plan.
Starwood Capital Group LLC was the winner of a July auction to
determine who would sponsor the reorganization plan. It called
for Starwood to assume ownership on account of its US$370 million
secured claim. When the plan failed, Starwood took ownership
through foreclosure.
BARNWELL COUNTY: Files for Chapter 9 in South Carolina
-------------------------------------------------------
Bill Rochelle, the bankruptcy columnist for Bloomberg News,
reports that Barnwell County Hospital in South Carolina filed for
municipal reorganization under Chapter 9 of the Bankruptcy Code
(Bankr. D. S.C. Case No. 11-06207) on Oct. 5 in Columbia, South
Carolina. The hospital is licensed for 53 beds, although only 31
are currently operating. It also operates three rural health
clinics in southwestern South Carolina. The hospital said it
filed because the county said it's no longer willing or able to
fund losses. Revenue of $11.8 million over the first seven months
of 2011 resulted in a $1 million loss, a court filing says. The
hospital has no bonded debt, a court paper says. Assets and debt
are both less than $10 million, the petition says.
BERNARD L. MADOFF: Trustee Seeks Quick Appeal on Wilpon Ruling
--------------------------------------------------------------
Bill Rochelle, the bankruptcy columnist for Bloomberg News,
reports that the trustee liquidating Bernard L. Madoff Investment
Securities Inc. took the first step necessary for appealing a
ruling on Sept. 27 by U.S. District Judge Jed Rakoff that had the
effect of limiting recoveries in 900 lawsuits where the trustee is
attempting to take back fictitious profits received by Madoff
customers.
Judge Rakoff ruled in September that Irving Picard, the Madoff
trustee, is only permitted to sue for recovery of fictitious
profits taken out within two years before bankruptcy. He
dismissed the trustee's claims going back six years. Judge Rakoff
also dismissed the trustee's preference claims. Judge Rakoff's
ruling was made in the trustee's $1 billion lawsuit against Mets
owner Fred Wilpon along with Wilpon's friends, family and
associates. The trustee said Judge Rakoff's opinion has the
effect of reducing his recovery to a maximum of about $400
million.
Mr. Rochelle notes that the trustee doesn't have the right to an
immediate appeal to the U.S. Court of Appeals because the Sept. 27
ruling didn't wrap up the entire Wilpon lawsuit. To take the
issues up on appeal without delay, Mr. Picard filed papers on
Oct. 7 asking Judge Rakoff to grant permission for an immediate
appeal and not require waiting until the entire lawsuit is
completed. The trustee contends that an immediate appeal is
justified because the case involves controlling issues of law that
affect 900 suits against customers.
Mr. Picard, according to the report, says Judge Rakoff erred by
ignoring mandates from the U.S. Court of Appeal which ruled in the
Madoff case that fictitious entries in account statement were to
be ignored when calculating claims. The trustee says that Judge
Rakoff's opinion in September gave "legal effect" to Mr. Madoff's
"machination" by dismissing claims beyond two years under the so-
called safe harbor in bankruptcy law. The trustee argues that the
safe harbor doesn't apply because the account statement didn't
reflect bona fide transactions in securities. Mr. Picard contends
that "every other court to consider the issue" didn't invoke the
safe harbor "to shield transfers made in furtherance of a pure
fiction." In support of his argument, the trustee points to
decisions from the U.S. Courts of Appeal in San Francisco and New
Orleans.
The Madoff trustee also contends that Judge Rakoff applied an
unjustifiably high standard he must meet before defeating
customers' contentions that they were in good faith and not
required to disgorge payments. Mr. Picard and the Securities
Investor Protection Corp. point to an opinion in another Madoff
case by Kimba M. Wood, another district judge in New York, who
would permit suits going back six years and use a lower standard
for defeating the good faith defense.
Mr. Rochelle notes that by limiting recoveries to two years, Judge
Rakoff's ruling has the effect of decreasing eventual recoveries
by customers who left money with Mr. Madoff until the bitter end.
The Wilpon suit in district court is Picard v. Katz, S.D.N.Y.,
Case No. 11-03605.
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.
BELLMARK RECORDS: Ex-Motown Head Says He Kept Copyrights
--------------------------------------------------------
Eric Hornbeck at Bankruptcy Law360 reports that music producer
Alvertis Isbell told a Texas federal court Monday that he and his
company hadn't lost the copyrights to the songs "Dazzey Duks" and
"Whoomp (There It Is)" in bankruptcy and that licensee DM Records
Inc. was infringing them.
"DM Records, through sleight of hand and outright thievery, took
advantage of a bankrupt individual in order to steal his assets
and [has] gotten rich in the process of exploiting this stolen
property," Mr. Isbell said in a motion for partial summary
judgment.
As reported in the April 4, 2011 edition of the TCR, ALVERTIS
ISBELL d/b/a ALVERT MUSIC, v. DM RECORDS, INC., Case No.
4:07-cv-00146 (E.D. Tex.), seeks a declaratory judgment that
Alvert Music is the rightful owner of two musical compositions:
"Dazzey Duks" and "Whoomp! (There It Is)." The events giving rise
to this suit begin with business conducted by two companies,
Alvert Music and Bellmark Records, each run by Mr. Isbell.
Bellmark was purportedly a record company, owning sound
recordings. Alvert Music is, and has been, a music publishing
company, which owns musical compositions and not sound recordings.
During the early 1990's, Bellmark entered into agreements to
obtain the rights to the musical compositions for "Dazzey Duks"
and 50% of "Whoomp! (There It Is)" for its affiliated publishing
company, which was Alvert Music. Bellmark retained for itself the
two sound recordings. In 1997, DM Records secured licenses from
both of Mr. Isbell's companies to exploit both the musical
compositions and sound recordings at issue. In April 1997,
Bellmark filed a Chapter 11 petition in the United States
Bankruptcy Court for the Eastern District of Texas, which petition
was later converted into a Chapter 7 petition. In October 1999,
DM purchased the assets of Bellmark Records from the bankruptcy
estate, including the sound recordings of the two songs at issue.
Alvert Music has not sought bankruptcy protection. Since that
time, DM allegedly has proceeded with regard to the two songs in a
manner inconsistent with Alvert Music's ownership of the musical
composition rights thereto.
In 2002, Mr. Isbell filed the lawsuit in the Northern District of
Texas. That court transferred the matter to E.D. Tex. court, and
the magistrate judge referred it to the bankruptcy court.
BERNARD L. MADOFF: Former Unit Closes After Failing to Find Buyer
-----------------------------------------------------------------
Dow Jones' Daily Bankruptcy Review reports that Surge Trading
Inc., a firm built on the remnants of Bernard Madoff's stock-
trading division, has shut down about two years after the assets
were acquired from the disgraced fund manager's estate, closing
another chapter in one of Wall Street's most infamous business
failures.
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.
BILL HEARD: Holler-Classic to Build Auto Mall in Sanford
--------------------------------------------------------
Anjali Fluker, senior staff writer at the Orlando Business
Journal, reports that Holler-Classic Automotive Group said it is
gearing up to start construction on the first phase of a new
$10 million, multi-brand dealership concept on the former Bill
Heard Chevrolet site in Sanford, Florida.
According to the report, the 26.8-acre site sat vacant for three
years after former parent company Bill Heard Enterprises Inc.
filed for Chapter 11 bankruptcy reorganization in 2008 and closed
the dealership.
The report notes Holler-Classic bought the property on North
Oregon Street for $9.5 million late last year. Holler-Classic got
the nod from the Seminole County Commission on Sept. 27, 2011, to
add a 27,000-square-foot building for an Audi dealership.
About Bill Heard Enterprises
Headquartered in Huntsville, Alabama, Bill Heard Enterprises Inc.
-- http://www.billheardhuntsville.com/-- was one of the largest
Chevrolet dealers in the United States. The company and 17 of
its affiliates filed for Chapter 11 protection (Bankr. N.D. Ala.
Case No. 08-83028) on Sept. 28, 2008. Derek F. Meek, Esq.,
at Burr & Forman, LLP, represents the Debtors in their
restructuring efforts. An official committee of unsecured
creditors was appointed in the bankruptcy cases. Kilpatrick
Stockton LLP represents the Committee. When the Debtors sought
protection from their creditors, they estimated their assets and
debts at more than $500 million. William F. Perkins serves as
the Chapter 11 Trustee for Bill Heard and is represented by
Jackson R. Sharman, III, Esq., John Stewart Baker, IV, Esq., and
Samuel H. Franklin, Esq., at Lightfoot Franklin & White LLC in
Birmingham, Ala., David O'Neal, Esq., Jessica P. Corley, Esq., and
Todd R. David, Esq., at Alston & Bird in Atlanta, Ga.
BLOCKBUSTER INC: Court Authorizes K&L as Special IP Counsel
-----------------------------------------------------------
Blockbuster Inc. and its units have been authorized by the
Bankruptcy Court to employ K&L Gates LLP as their special
intellectual property counsel in connection with various
technology and Internet matters, nunc pro tunc to the Petition
Date.
In connection with the IP Matters, K&L Gates will:
(a) represent the Debtors with respect to technology and
Internet matters;
(b) negotiate the Debtors' video distribution and partnership
agreements with various mobile phone and consumer
electronics companies; and
(c) represent the Debtors in any other transactions that may
arise with respect to the IP Matters.
The Debtors will pay K&L Gates under an hourly fee structure based
on K&L Gates' standard hourly rates.
The hourly rates for professional services rendered in connection
with the IP Matters currently range from $310 for associates up to
$560 per hour for partners.
About Blockbuster Inc.
Blockbuster Inc., the movie rental chain with a library of
more than 125,000 titles, along with 12 U.S. affiliates,
initiated Chapter 11 bankruptcy proceedings with a pre-arranged
reorganization plan in Manhattan (Bankr. S.D.N.Y. Case No.
10-14997) on Sept. 23, 2010. It disclosed assets of $1 billion
and debts of $1.4 billion at the time of the filing.
Martin A. Sosland, Esq., and Stephen Karotkin, Esq., at Weil,
Gotshal & Manges, serve as counsel to the U.S. Debtors.
Rothschild Inc. is the financial advisor. Alvarez & Marsal is the
restructuring advisor with A&M managing director Jeffery J.
Stegenga as chief restructuring officer. Kurtzman Carson
Consultants LLC is the claims and notice agent. The Official
Committee of Unsecured Creditors retained Cooley LLP as its
counsel.
In April 2011, Blockbuster conducted a bankruptcy court-sanctioned
auction for all the assets. Dish Network Corp. won with an offer
having a gross value of $320 million.
BLOCKBUSTER INC: Employs V & E as Litigation Counsel
----------------------------------------------------
Blockbuster Inc. and its units have been authorized by the Court
to employ Vinson & Elkins LLP as special litigation counsel in
connection with various litigation and corporate matters, nunc pro
tunc to the Petition Date.
In connection with the Litigation Matters and the Corporate and
Securities Matters, V & E will:
(a) respond to third-party discovery requests, prepare
witnesses, and handle all administrative matters with
respect to several antitrust litigation matters;
(b) represent and defend the Debtors in several patent
infringement cases;
(c) represent and defend the Debtors in several class action
lawsuits, and any related matters; and
(d) represent the Debtors in any Corporate and Securities
Matters that may be needed during the pendancy of the
Chapter 11 cases to keep the Debtors compliant with the
applicable regulations.
The Debtors will pay V & E in accordance with its current standard
hourly rates, plus reimbursement of actual and necessary expenses.
V & E's customary hourly rates for the personnel currently
contemplated to work on the cases are (i) $260 for the most junior
associate to $585 for the most senior partner, and (ii) $130 to
$245 for the paralegals.
About Blockbuster Inc.
Blockbuster Inc., the movie rental chain with a library of
more than 125,000 titles, along with 12 U.S. affiliates,
initiated Chapter 11 bankruptcy proceedings with a pre-arranged
reorganization plan in Manhattan (Bankr. S.D.N.Y. Case No.
10-14997) on Sept. 23, 2010. It disclosed assets of $1 billion
and debts of $1.4 billion at the time of the filing.
Martin A. Sosland, Esq., and Stephen Karotkin, Esq., at Weil,
Gotshal & Manges, serve as counsel to the U.S. Debtors.
Rothschild Inc. is the financial advisor. Alvarez & Marsal is the
restructuring advisor with A&M managing director Jeffery J.
Stegenga as chief restructuring officer. Kurtzman Carson
Consultants LLC is the claims and notice agent. The Official
Committee of Unsecured Creditors retained Cooley LLP as its
counsel.
In April 2011, Blockbuster conducted a bankruptcy court-sanctioned
auction for all the assets. Dish Network Corp. won with an offer
having a gross value of $320 million.
BORDERS GROUP: Wins Nod of Torrance Borders Agreement
-----------------------------------------------------
Judge Martin Glenn authorized Borders Group Inc. and its
affiliates to enter into a settlement agreement for the
termination of a lease for a Borders store in Torrance,
California, with landlord Torrance Borders Partners, Ltd.
All objections to the Debtors' request that have not been
withdrawn, waived, settled or specifically addressed in this
order, and all reservation of rights, are overruled in all
respects and denied, Judge Glenn ruled.
The Debtors withdrew their motion to approve sale of mortgage
loan related to a Borders store located at Torrance, California.
During the period of time that Borders was a wholly owned
subsidiary of K-Mart Corporation, K-Mart entered into a series of
agreements with developers and their lenders designed to decrease
the developer's financing costs for developing locations for use
by certain of Kmart's wholly owned retail operator subsidiaries,
including Borders. One location is the Borders store located in
Torrance, California. Torrance Store is an approximate 36,000
square foot 'box store.'
The developer of the Torrance Store, NCC Torrance/B Associated
Limited Partnership, which was succeeded in interest by the
Landlord financed the transaction through a mortgage loan
advanced by National Tenant Finance Corporation pursuant to a
Loan Satisfaction Agreement and evidenced by two Promissory Notes
in the original principal amounts of $3,383,000, which has been
fully amortized and satisfied, and $7,049,000. The Mortgage Note
is secured by, among other things, a Deed of Trust encumbering
the Torrance Property. As part of the Torrance Store development
transaction, Borders entered into a Lease with Landlord.
The bankruptcy filing of K-Mart constituted a "Triggering Event"
under the Note Put Satisfaction Agreement and Borders purchased
both mortgage notes, including the Mortgage Note, in February
2002. Borders remains the owner of all right, title and interest
in and to the Loan, the Mortgage Note and all documents securing
or otherwise evidencing the Loan.
There is currently due and owing under the Mortgage Note a
$6,608,000 principal amount. The Mortgage Note is not scheduled
to be fully amortized and satisfied until the conclusion of the
current term of the Torrance Lease on November 9, 2019.
To recall, Borders sought Court approval of the sale of the
Mortgage Note to Hareff Torrance LLC. The Official Committee of
Unsecured Creditors, however, objected to the Hareff Agreement.
In light of the objection, the Debtors decided to adjourn the
motion seeking to approve the Hareff Agreement. Borders
continued negotiations with Hareff for the sale of a 100%
interest in the Mortgage Note.
In addition, with the assistance of DJM Realty, Borders opened up
discussions with the Landlord regarding the termination of the
Torrance Lease and satisfaction of the Mortgage Note at a
discounted amount or purchase of the Mortgage Note by an
affiliate of Landlord. The Debtors determined that the Landlord
has offered the best and highest bid for the Mortgage Note.
Accordingly, the Debtors, with the consent of the Creditors'
Committee, entered into the Mortgage Note Satisfaction Agreement,
whereby:
(A) Upon execution of the Mortgage Note Satisfaction Agreement,
the Landlord will place a $500,000 good faith deposit with
Dickinson Wright PLLC as escrow agent. If the transaction
does not close due to a default of Landlord, the Deposit
will be released to Borders as liquidated damages. In the
event the transaction does not close: (i) due to the
"Effective Date" not occurring on or before November 1,
2011; (ii) the Satisfaction Agreement is terminated by
either party in the event an appeal of the order approving
the Debtors' Motion; or (iii) a default of Borders, the
Deposit will be returned to the Landlord.
(B) The Landlord as borrower under the Mortgage Note
Satisfaction Agreement will pay to Borders $3,925,000 on
the Effective Date of the Mortgage Note Satisfaction
Agreement.
(c) At the Landlord's election, upon the Effective Date and
payment of the Satisfaction Amount, either the Mortgage
Note will be deemed satisfied and the Mortgage discharged,
or the Mortgage Note will be transferred to an affiliate of
Landlord.
(D) The Torrance Lease will be deemed terminated as of
September 14, 2011. Borders has surrendered the Torrance
Property to Landlord in "as is, where is" condition.
(E) Upon the Effective Date and payment of the Satisfaction
Amount, Borders will consider the Mortgage Note satisfied
in full and will release the Mortgage Note, and will waive
any and all claims against the Landlord and its affiliates
arising under or relating to the Lease or the Mortgage
Note. Upon the Effective Date, the Landlord and its
affiliates will waive any and all claims against the
Debtors, whether such claims constitute prepetition claims,
administrative priority claims, or otherwise.
(F) In the event Borders or the Debtors' estates are obligated
to return any portion of the Satisfaction Amount, the
Mortgage Note and Mortgage will be deemed reinstated.
A full-text copy of the Mortgage Note Satisfaction Agreement is
available for free at:
http://bankrupt.com/misc/Borders_MortgageNoteSatisfctnPact.pdf
Andrew K. Glenn, Esq., at Kasowitz, Benson, Torres & Friedman
LLP, in New York, relates that the Debtors are liquidating their
holdings and have determined that the Torrance Lease is not of
value for their estates or creditors. In contrast, foreclosing
upon the Mortgage Note will necessitate costly litigation and
that the related holding costs of the Torrance Property will be a
further drain upon the Debtors' estates. Based on years of
trying to market the Mortgage Note and the Torrance Lease, the
Debtors determined that no better alternative exists for
maximizing recovery on those assets, he maintains.
About Borders Group
Borders Group operated book, music and movie superstores and mall
based bookstores under the Borders, Waldenbooks, Borders Express
and Borders Outlet names, as well as Borders-branded airport
stores in the United States. At Jan. 29, 2011, the Company
operated 639 stores in the United States and 3 in Puerto Rico.
The Company also operated a proprietary e-commerce Web site --
http://www.Borders.com/-- launched in May 2008, which included
both in-store and online e-commerce components. As of Feb. 11,
2011, Borders employed a total of 6,100 full-time employees,
11,400 part-time employees, and roughly 600 contingent employees.
Borders Group Inc. and its affiliates filed for Chapter 11
protection (Bankr. S.D.N.Y. Case No. Lead Case No. 11-10614) in
Manhattan on Feb. 16, 2011.
David M. Friedman, Esq., David S. Rosner, Esq., Andrew K. Glenn,
Esq., and Jeffrey R. Gleit, Esq., at Kasowitz, Benson, Torres &
Friedman LLP, in New York, serve as counsel to the Debtors.
Jefferies & Company's Inc. is the financial advisor. DJM Property
Management is the lease and real estate services provider. AP
Services LLC is the interim management and restructuring services
provider. The Garden City Group, Inc., is the claims and notice
agent.
Attorneys at Morgan, Lewis & Bockius LLP, and Riemer & Braunstein
LLP, serve as counsel to the DIP Agents.
Lowenstein Sandler represents the official unsecured creditors
committee for Borders Group. Bruce S. Nathan and Bruce Buechler,
members of Lowenstein Sandlers' Bankruptcy, Financial
Reorganization & Creditors' Rights Group, are leading the team.
The Debtor disclosed $1.28 billion in assets and $1.29 billion in
liabilities as of Dec. 25, 2010
Borders is completing going-out-of-business sales that
began at all of its remaining locations in July. The creditors?
committee said before the liquidation began that Borders
expected to generate $252 million to $284 million in cash from
the sales. Borders is selling store leases separately. Borders
selected proposals by Hilco and Gordon Brothers to conduct going
out of business sales for all stores after no going concern offers
of higher value were submitted by the deadline.
Bankruptcy Creditors' Service, Inc., publishes BORDERS GROUP
BANKRUPTCY NEWS. The newsletter tracks the Chapter 11 proceeding
undertaken by Borders Group Inc., the United States' second
largest bookstore chain. (http://bankrupt.com/newsstand/or
215/945-7000
BORDERS GROUP: Hilco Streambank Has $1.2MM Commission from IP Sale
------------------------------------------------------------------
David Peress, a principal of Hilco Streambank, LLC, disclosed
that the total commission due to his firm with respect to the IP
Asset Sales is $1,198,300 calculated as:
(a) 3% of the first $2.5 million = $75,000
(b) 5% of the next $5 million = $250,000
(c) 7.5% of the next $2.5 million = $187,500
(d) 12% of amounts exceeding $10 million = $685,800.
In connection with the IP Asset Sales, Streambank incurred out of
pocket expenses aggregating $11,358, comprised of:
Expenses Amount
-------- ------
Travel $5,349
Lodging 3,914
Meals 721
Postage 31
Advertising and Marketing 1,342
In accordance with the Engagement Letter, the Debtors previously
paid Streambank a management fee of $100,000 which is to be
credited against the commissions due it in respect of the IP
Asset Sales, and reimbursed Streambank's expenses of $2,171.
Accordingly, Streambank is currently due $1,098,300 in
commissions and reimbursement of $9,187 in expenses for a total
of $1,107,487.
As reported in the Aug. 11, 2011 edition of the TCR, the
Bankruptcy Court for the Southern District of New York approved
the retention of Streambank, LLC to market and sell the
intellectual property assets of Borders Group, Inc., including its
Borders(R), Waldenbooks(R), and Brentano's(R) trademarks and the
Borders.com e-commerce business assets. The Bankruptcy Court has
authorized a sale process for the intellectual property assets
that required bids for the assets by Sept. 8, 2011 and an auction
on Sept. 14, 2011.
About Streambank
Streambank is an advisory firm, specializing in the valuation,
marketing, and sales of intangible assets for businesses at all
stages. Streambank identifies, preserves, and extracts value for
clients through the application of experience, diligence and
creativity. The firm's recent experience includes Robb & Stucky
Furniture, Berkline/BenchCraft, Tavern on the Green, Anchor Blue,
Movie Gallery, Circuit City Stores, KB Toys and other notable
trademarks and brand names.
About Borders Group
Borders Group operated book, music and movie superstores and mall
based bookstores under the Borders, Waldenbooks, Borders Express
and Borders Outlet names, as well as Borders-branded airport
stores in the United States. At Jan. 29, 2011, the Company
operated 639 stores in the United States and 3 in Puerto Rico.
The Company also operated a proprietary e-commerce Web site --
http://www.Borders.com/-- launched in May 2008, which included
both in-store and online e-commerce components. As of Feb. 11,
2011, Borders employed a total of 6,100 full-time employees,
11,400 part-time employees, and roughly 600 contingent employees.
Borders Group Inc. and its affiliates filed for Chapter 11
protection (Bankr. S.D.N.Y. Case No. Lead Case No. 11-10614) in
Manhattan on Feb. 16, 2011.
David M. Friedman, Esq., David S. Rosner, Esq., Andrew K. Glenn,
Esq., and Jeffrey R. Gleit, Esq., at Kasowitz, Benson, Torres &
Friedman LLP, in New York, serve as counsel to the Debtors.
Jefferies & Company's Inc. is the financial advisor. DJM Property
Management is the lease and real estate services provider. AP
Services LLC is the interim management and restructuring services
provider. The Garden City Group, Inc., is the claims and notice
agent.
Attorneys at Morgan, Lewis & Bockius LLP, and Riemer & Braunstein
LLP, serve as counsel to the DIP Agents.
Lowenstein Sandler represents the official unsecured creditors
committee for Borders Group. Bruce S. Nathan and Bruce Buechler,
members of Lowenstein Sandlers' Bankruptcy, Financial
Reorganization & Creditors' Rights Group, are leading the team.
The Debtor disclosed $1.28 billion in assets and $1.29 billion in
liabilities as of Dec. 25, 2010
Borders is completing going-out-of-business sales that
began at all of its remaining locations in July. The creditors?
committee said before the liquidation began that Borders
expected to generate $252 million to $284 million in cash from
the sales. Borders is selling store leases separately. Borders
selected proposals by Hilco and Gordon Brothers to conduct going
out of business sales for all stores after no going concern offers
of higher value were submitted by the deadline.
Bankruptcy Creditors' Service, Inc., publishes BORDERS GROUP
BANKRUPTCY NEWS. The newsletter tracks the Chapter 11 proceeding
undertaken by Borders Group Inc., the United States' second
largest bookstore chain. (http://bankrupt.com/newsstand/or
215/945-7000
BORDERS GROUP: Withdraws Application to Hire Mortgage Corp.
-----------------------------------------------------------
Borders Group Inc. and its affiliates withdrew their application
to employ Mortgage Corporation of America as their mortgage
broker, according to a notice submitted by the Debtors.
In the application, the Debtors said MCA will be performing these
services:
(a) prepare financing memorandum outlining the property,
market, transaction, structure, economics, sponsorship;
(b) determine the range of alternatives which coincide with
the characteristics outlined by the client and the
possible avenues that are available to conclude the
transaction;
(c) market the transaction to potential interested parties;
(d) provide and consolidate relevant information necessary for
selecting and negotiating with potential buyer;
(e) assist throughout the structural negotiation, initial due
diligence and closing process in order to ensure that the
transaction is executed as expeditiously and smoothly as
possible; and
(f) assist in the post-closing activities.
About Borders Group
Borders Group operated book, music and movie superstores and mall
based bookstores under the Borders, Waldenbooks, Borders Express
and Borders Outlet names, as well as Borders-branded airport
stores in the United States. At Jan. 29, 2011, the Company
operated 639 stores in the United States and 3 in Puerto Rico.
The Company also operated a proprietary e-commerce Web site --
http://www.Borders.com/-- launched in May 2008, which included
both in-store and online e-commerce components. As of Feb. 11,
2011, Borders employed a total of 6,100 full-time employees,
11,400 part-time employees, and roughly 600 contingent employees.
Borders Group Inc. and its affiliates filed for Chapter 11
protection (Bankr. S.D.N.Y. Case No. Lead Case No. 11-10614) in
Manhattan on Feb. 16, 2011.
David M. Friedman, Esq., David S. Rosner, Esq., Andrew K. Glenn,
Esq., and Jeffrey R. Gleit, Esq., at Kasowitz, Benson, Torres &
Friedman LLP, in New York, serve as counsel to the Debtors.
Jefferies & Company's Inc. is the financial advisor. DJM Property
Management is the lease and real estate services provider. AP
Services LLC is the interim management and restructuring services
provider. The Garden City Group, Inc., is the claims and notice
agent.
Attorneys at Morgan, Lewis & Bockius LLP, and Riemer & Braunstein
LLP, serve as counsel to the DIP Agents.
Lowenstein Sandler represents the official unsecured creditors
committee for Borders Group. Bruce S. Nathan and Bruce Buechler,
members of Lowenstein Sandlers' Bankruptcy, Financial
Reorganization & Creditors' Rights Group, are leading the team.
The Debtor disclosed $1.28 billion in assets and $1.29 billion in
liabilities as of Dec. 25, 2010
Borders is completing going-out-of-business sales that
began at all of its remaining locations in July. The creditors?
committee said before the liquidation began that Borders
expected to generate $252 million to $284 million in cash from
the sales. Borders is selling store leases separately. Borders
selected proposals by Hilco and Gordon Brothers to conduct going
out of business sales for all stores after no going concern offers
of higher value were submitted by the deadline.
Bankruptcy Creditors' Service, Inc., publishes BORDERS GROUP
BANKRUPTCY NEWS. The newsletter tracks the Chapter 11 proceeding
undertaken by Borders Group Inc., the United States' second
largest bookstore chain. (http://bankrupt.com/newsstand/or
215/945-7000
BRITT MOTORSPORTS: Case Summary & 20 Largest Unsecured Creditors
----------------------------------------------------------------
Debtor: Britt Motorsports, LLC
dba BMS-Kinston Properties, LLC
dba Britt Self-Storage
dba Center 149, LLC
dba HotRodz of Fayetteville, LLC
dba BMS-Fayetteville Properties, LLC
dba Britt Motorsports of Jacksonville
dba Britt Motorsports, Inc.
dba Britt Motorsports Morehead City, LLC
6431 Market Street
Wilmington, NC 28405
Bankruptcy Case No.: 11-07688
Chapter 11 Petition Date: October 7, 2011
Court: United States Bankruptcy Court
Eastern District of North Carolina (Wilson)
Judge: J. Rich Leonard
Debtor's Counsel: Trawick H Stubbs, Jr., Esq.
STUBBS & PERDUE, P.A.
P.O. Drawer 1654
New Bern, NC 28563
Tel: (252) 633-2700
Fax: (252) 633-9600
E-mail: efile@stubbsperdue.com
Scheduled Assets: $5,050,947
Scheduled Debts: $8,278,338
A list of the Company's 20 largest unsecured creditors filed
together with the petition is available for free at
http://bankrupt.com/misc/nceb11-07688.pdf
The petition was signed by D. Scott Britt, manager/member.
BRIXMOR LLC: S&P Lifts Corp. Rating to 'B; Off Watch Positive
-------------------------------------------------------------
Standard & Poor's Ratings Services raised its corporate credit and
unsecured debt ratings on Brixmor LLC to 'B' from 'CCC+' and
removed them from CreditWatch, where S&P placed them with positive
implications on March 2, 2011. The outlook is stable.
"The upgrade follows BRE Retail Holdings Inc.'s acquisition of
Australian-based Centro Properties Group's U.S. assets, which
include Brixmor Property Group, Brixmor LLC, and a management
platform, in a $9.0 billion transaction," said credit analyst
Elizabeth Campbell. "The upgrade reflects our view that the
transaction extracts Brixmor LLC from its position as a subsidiary
of a highly leveraged and complex parent. The ratings reflect
Brixmor LLC's improved, but still less-than-adequate, liquidity
position -- as the company is reliant on operating cash flow and a
functioning mortgage market."
Brixmor LLC's capital needs are moderate through 2012, and we view
the company's liquidity position as less-than-adequate. This is
due to the company's reliance on internally generated cash flow
and a functioning mortgage market, as it does not have access to a
revolving credit facility. Further, despite some improvement in
U.S. retail real estate fundamentals, Brixmor LLC's portfolio
occupancy has lagged the peer group. "We would consider an upgrade
if Brixmor LLC successfully addresses these credit weaknesses
while maintaining fixed-charge coverage measures. Alternatively,
we would consider a downgrade if liquidity weakened," S&P related.
CAMBODIANA INC: Files for Chapter 11 Bankruptcy Protection
----------------------------------------------------------
Vanessa Small at the Washington Post reports that Cambodiana Inc.
at 1306 W. Patrick St., No. 13 in Frederick, Maryland, filed for
Chapter 11 protection in the U.S. Bankruptcy Court for the
District of Maryland (Case No. 11-29842) on Oct. 4, 2011. The
Company estimated both assets of less than $50,000, and debts of
between $50,000 and $100,000. The Company owes $42,128 to its
unsecured creditor, Republic National Distributor. Lawrence E.
Heffner Jr. represents the Company as its attorney.
CAMTECH PRECISION: Avstar Has Until Nov. 5 to Solicit Plan Votes
----------------------------------------------------------------
The Hon. Paul G. Hyman Jr., of the U.S. Bankruptcy Court for the
Southern District of Florida extended debtor Avstar Fuel Systems,
Inc.'s exclusive right to solicit acceptances for the proposed
Plan of Reorganization until Nov. 5, 2011.
Avstar, a debtor-affiliate of Camtech Precision Manufacturing,
Inc., filed its Plan and Disclosure Statement on July 5, 2011.
The hearing to consider approval of Avstar's Disclosure Statement
was held on Aug. 16, 2011.
Avstar required additional time to resolve contingencies and
negotiate with its creditors.
In a separate order, the Court also extended Debtor R & J National
Enterprises, Inc.'s exclusive periods to file ands solicit
acceptances for the proposed plan of reorganization until Oct. 14,
2011, and Dec. 16, respectively.
About Camtech Precision
Avstar, founded in 2007, designs, manufactures and overhauls
carburetors and fuel injection systems for aviation industry.
Avstar is the holder of Federal Aviation Administration Parts
Manufacturer Approvals for general aviation fuel systems. Avstar
generates sales primarily from new product sales and overhauls of
carburetors and servos for the general aviation industry.
Jupiter, Florida-based Camtech Precision Manufacturing, Inc.,
Avstar Fuel Systems, Inc., and R & J National Enterprises, Inc.,
filed for Chapter 11 bankruptcy protection (Bankr. S.D. Fla. Case
Nos. 10-22760, 10-22762 and 10-22762) on May 10, 2010. Bradley S.
Shraiberg, Esq., who has an office in Boca Raton, Florida, serve
as counsel to the Debtors. Carlos E. Sardi, Esq., and Glenn D.
Moses, Esq., who have an office in Miami, Florida, represent the
Official Committee of Unsecured Creditors. In its schedules,
Camtech disclosed assets of $10,977,673 and debts of $14,625,066.
CANDLELIGHT PROPERTIES: Case Summary & 20 Largest Unsec. Creditors
------------------------------------------------------------------
Debtor: Candlelight Properties, LLC
8888 Keystone Crossing, Suite 650
Indianapolis, IN 46240
Bankruptcy Case No.: 11-12698
Chapter 11 Petition Date: October 7, 2011
Court: United States Bankruptcy Court
Southern District of Indiana (Indianapolis)
Judge: Frank J. Otte
Debtor's Counsel: James S. Kowalik, Esq.
HOSTETLER AND KOWALIK, P.C.
101 W Ohio St Ste 2100
Indianapolis, IN 46204
Tel: (317) 262-1001
Fax: (317) 262-1010
E-mail: jkowalik@hklawfirm.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $10,000,001 to $50,000,000
A list of the Company's 20 largest unsecured creditors filed
together with the petition is available for free at
http://bankrupt.com/misc/insb11-12698.pdf
The petition was signed by Ronald E. Farren, managing member.
Affiliate that filed separate Chapter 11 petition:
Petition
Debtor Case No. Date
------ -------- ----
JC Candlelight Homes, LLC 11-12699 10/07/11
CAPITAL HOME: Cash Collateral Hearing Continued Until Oct. 18
-------------------------------------------------------------
The U.S. Bankruptcy Court for the Northern District of Illinois
has continued until Oct. 18, 2011, at 10:30 a.m., the hearing to
consider Capital Home Sales, LLC, et al.'s request for cash
collateral use.
The Court previously authorized, on an interim basis, the Debtor
to access the cash collateral to fund its business operations,
postpetition.
As reported in the Troubled Company Reporter on March 22, 2011,
the Debtor owes M.B. $21,566,048, as of the Petition Date. The
debt, secured by assets of the Debtor, is on account of a
revolving note in the principal amount of $25 million provided by
M.B. on May 31, 2009.
In exchange for using cash collateral, the Debtor will grant M.B.
postpetition replacement liens to the same extent and with the
same priority held prepetition on the Collateral and all
postpetition property of the Debtor of the type or kind
substantially equivalent to the Collateral. The Debtor will
maintain adequate property insurance on the manufactured homes
listing M.B. as a lienholder where applicable.
About Capital Home
Portland, Oregon-based Capital Home Sales, LLC -- dba Falcon
Financial, LLC; Kestral Financial, LLC; Emerald Financial, LLC;
Teal Financial, LLC; Harrier Financial, LLC; Goshawk Financial,
LLC; Heron Financial, LLC; Wigeon Financial, LLC; Kestral Onel,
LLC; Kestral Rentals; Wigeon Rentals; and Goshawk Rentals --
started as a series of individual companies that performed sales
and rental functions for particular manufactured home communities,
which communities were often related affiliates of the Company.
The Company conducts the foregoing business operation of
purchasing, selling, leasing and financing homes.
The Company filed for Chapter 11 bankruptcy protection (Bankr.
N.D. Ill. Case No. 10-54387) on Dec. 8, 2010. Gregory K. Stern,
Esq., at Gregory K. Stern, P.C., serves as the Company's counsel.
The Company estimated assets at $50 million to $100 million
and debts at $10 million to $50 million.
CAPITAL HOME: Case Dismissal Hearing Continued Until Oct. 18
------------------------------------------------------------
The U.S. Bankruptcy Court for the Northern District of Illinois
has continued until Oct. 18, 2011, at 10:30 a.m., the hearing to
consider the request to dismiss the Chapter 11 cases of Capital
Home Sales, LLC, Drake Rental, LLC, and Emerald One, LLC.
As reported in the Troubled Company Reporter on Aug. 25, 2011, the
Debtors requested for a case dismissal because they are unable to
propose a feasible plan of reorganization, and have no assets
which a Chapter 7 trustee could administer for the benefit of
unsecured creditors.
TCF National Bank objected to the Debtors' motion to dismiss out
of concern for the Debtors' continued compliance absent active
bankruptcy proceedings or alternatively, a Chapter 7 trustee's
oversight of the orderly winding down of the estates.
TCF related that it has no method of ensuring that the Debtors
comply with the terms of the lift stay order, specifically the
timely turnover or rental income, without access to the operating
reports.
According to TCF, it has negotiated with the Debtor three
separate, but substantively identical joint stipulations and
agreed orders lifting the automatic stays for purposes of allowing
TCF to recover and dispose of its collateral consisting of
manufactured homes.
About Capital Home
Portland, Oregon-based Capital Home Sales, LLC -- dba Falcon
Financial, LLC; Kestral Financial, LLC; Emerald Financial, LLC;
Teal Financial, LLC; Harrier Financial, LLC; Goshawk Financial,
LLC; Heron Financial, LLC; Wigeon Financial, LLC; Kestral Onel,
LLC; Kestral Rentals; Wigeon Rentals; and Goshawk Rentals --
started as a series of individual companies that performed sales
and rental functions for particular manufactured home communities,
which communities were often related affiliates of the Company.
The Company conducts the foregoing business operation of
purchasing, selling, leasing and financing homes.
The Company filed for Chapter 11 bankruptcy protection (Bankr.
N.D. Ill. Case No. 10-54387) on Dec. 8, 2010. Donna B. Wallace,
Esq., and Joseph A Baldi, Esq., at Baldi Berg & Wallace, Ltd., in
Chicago, serve as counsel. The Company estimated assets at
$50 million to $100 million and debts at $10 million to
$50 million.
CAPMARK FINANCIAL: Emerges From Chapter 11 Bankruptcy Protection
----------------------------------------------------------------
Crissa Shoemaker DeBree at Calkins Media Inc. reports that Capmark
Financial Group Inc. has emerged from Chapter 11 bankruptcy and
made initial payments to creditors.
According to the report, the unsecured creditors will receive
$900 million in cash, $1.25 billion in secured notes and 100
million shares in Capmark, a former commercial lender that is now
a bank holding company.
About Capmark Financial
Based in Horsham, Pennsylvania, Capmark Financial Group Inc. --
http://www.capmark.com/-- provides financial services to
investors in commercial real estate-related assets. Capmark has
three core businesses: lending and mortgage banking, investments
and funds management, and servicing. Capmark operates in North
America, Europe and Asia. Capmark has 1,000 employees located in
37 offices worldwide.
On Oct. 25, 2009, Capmark Financial and certain of its
subsidiaries filed voluntary petitions for relief under Chapter 11
(Bankr. D. Del. Lead Case No. 09-13684). Capmark disclosed assets
of US$20 billion against total debts of US$21 billion as of
June 30, 2009.
Capmark's financial advisors are Lazard Freres & Co. LLC and
Loughlin Meghji + Company. Capmark's bankruptcy counsel is Dewey
& LeBoeuf LLP. Richards, Layton & Finger, P.A., serves as local
counsel. Beekman Advisors, Inc., is serving as strategic advisor.
KPMG LLP is tax and accounting advisor. Epiq Bankruptcy
Solutions, LLC, is the claims and notice agent.
The Official Committee of Unsecured Creditors in Capmark Financial
Group Inc.'s cases tapped Kramer Levin Naftalis & Frankel LLP as
its counsel and JR Myriad LLC as its commercial real estate
business advisors. The Committee also retained Cutler Pickering
Hale and Dorr LLP as its attorneys for the special purpose of
providing legal services in connection with Federal Deposit
Insurance Corporation matters.
Protech Holdings C LLC, an affiliate of Capmark, filed for
Chapter 11 protection on July 29, 2010 (Bankr. D. Del. Case No.
10-12387). The Debtor estimated assets and debts in excess of
$1 billion as of the filing date.
Since filing for Chapter 11, Capmark completed three sales to
generate more than $1 billion in cash. Berkshire Hathaway Inc.
and Leucadia National Corp. bought most of the business for
$468 million.
In April 2011, Greenline Ventures LLC completed the acquisition of
the New Markets Tax Credit division of Capmark Financial Group
Inc. Since inception of the NMTC program, Capmark's NMTC division
has closed over $1.1 billion of NMTC investment funds and financed
over $2.5 billion of projects and businesses in low income
communities nationwide.
CARTER MCRAE: Defaults on Court-Ordered Payments
-------------------------------------------------
Dawn Walton at The Globe and Mail reports that Carter McRae Events
has defaulted on almost $600,000 in court-ordered judgments.
The now defunct Calgary-based firm, owned by Stephen Carter,
organized a 2009 visit to the city by the Dalai Lama, but was
later sued by the University of Calgary and two other companies
for losses related to the event, according to the report.
The Globe and Mail relates that judgments filed against Carter
McRae, which Mr. Carter operated with his wife, Heather McRae,
were rendered in the spring of 2010, and writs of enforcements
were issued for a total of $568,663, the Globe and Mail reports.
But not a penny has been paid, the report relates citing all
parties involved.
"You never want anything like that to happen, but it did," the
report quotes Mr. Carter as saying. "There was precious little we
could do. We certainly apologized to our creditors. To this day,
we have good relationships with some and we have bad relationships
with others. I don't begrudge them that. That's their choice."
Citing documents filed with the Court of Queen's Bench, the report
discloses that Carter McRae owes $406,216 to the University of
Calgary, which hosted the event featuring former South African
leader F.W. de Klerk and singers k.d. lang and Bryan Adams.
Another $91,496 is owed to Stampede Entertainment Inc., while
$70,951 is still outstanding to AVW-TELAV Audio Visual Solutions,
the report notes.
"There isn't much that can be done," the report quotes Dan Finley,
president and chief operating officer of Stampede Entertainment,
as saying. "The company is insolvent."
Carter McRae Events is an internationally recognized event
producer with offices in Calgary and Ottawa.
CHEF SOLUTIONS: Meeting to Form Creditors Committee Today
---------------------------------------------------------
Roberta DeAngelis, United States Trustee for Region 3, will hold
an organizational meeting on Oct. 12, 2011, at 10:00 a.m. in the
bankruptcy case of Chef Solutions Holdings LLC and Orval Kent Food
Company, LLC. The meeting will be held at:
DoubleTree Hotel Wilmington
700 North King Street
Wilmington, DE 19801
The sole purpose of the meeting will be to form a committee or
committees of unsecured creditors in the Debtors' cases.
The organizational meeting is not the meeting of creditors
pursuant to Section 341 of the Bankruptcy Code. A representative
of the Debtor, however, may attend the Organizational Meeting, and
provide background information regarding the bankruptcy cases.
To increase participation in the Chapter 11 proceeding, Section
1102 of the Bankruptcy Code requires that the United States
Trustee appoint a committee of unsecured creditors as soon as
practicable. The Committee ordinarily consists of the persons,
willing to serve, that hold the seven largest unsecured claims
against the debtor of the kinds represented on the committee.
Section 1103 of the Bankruptcy Code provides that the Committee
may consult with the debtor, investigate the debtor and its
business operations and participate in the formulation of a plan
of reorganization. The Committee may also perform other services
as are in the interests of the unsecured creditors whom it
represents.
About Chef Solutions
Chef Solutions Inc., through subsidiary Orval Kent, is the second
largest manufacturer in North America of fresh prepared foods for
retail, foodservice and commercial channels.
Chef Solutions and its affiliates filed for Chapter 11 protection
(Bankr. D. Del. Case No. 11-13139) on Oct. 4, 2011, in Delaware
with the aim of selling the business to a joint venture between
Mistral Capital Management LLC and Reser's Fine Foods Inc.
The Debtor estimated assets and debts both exceeding $100 million.
Judge Kevin Gross presides over the case. Lawyers at Richards,
Layton & Finger, P.A., serve as the Debtors' bankruptcy counsel.
Donlin Recano is the claims and notice agent. Piper Jaffray & Co.
has been hired as investment banker. PricewaterhouseCoopers
serves as financial advisor.
Judge Gross has authorized Chef Solutions to borrow $9 million to
fund operations as the Company gears up to sell its assets.
CHRISTIAN BROTHERS: Court Approves Re/Max 10 as Real Estate Broker
------------------------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of New York
authorized the Christian Brothers of Ireland, Inc., to employ
Re/Max "10" as its real estate broker with respect to the
marketing and sale of real property located at 9757 S. Seeley
Avenue, in Chicago, Illinois.
The property was used as a residence for the Debtor's brothers in
Chicago, Illinois, and is no longer occupied.
Upon sale of the Property, Re/Max will be paid a commission equal
to six percent of the sales price. In the event another licensed
real estate broker is solicited by Re/Max to become involved in
the transaction, Re/Max will pay the broker a fee for services by
separate agreement with such broker, and in no event will the fee
for services paid by the Debtor exceed the Commission.
Richard Ostergren, a member of Re/Max, assured the Court that his
firm is a "disinterested person" as the term is defined in Section
101(14) of the Bankruptcy Code.
The Christian Brothers' Institute and The Christian Brothers of
Ireland filed for Chapter 11 bankruptcy protection (Bankr.
S.D.N.Y. Case Nos. 11-22820 and 11-22821) on April 28, 2011.
Scott S. Markowitz, Esq., at Tarter Krinsky & Drogin LLP, in New
York, serves as the Debtors' bankruptcy counsel. In its
schedules, The Christian Brothers' Institute disclosed assets of
$63,418,267 and liabilities of $8,484,853 as of the Petition Date.
In its schedules, CBOI discloses assets of $1,091,084 and
liabilities of $3,622,500 as of the Petition Date.
CHRYSLER GROUP: UAW Begin Finalizing Details of Labor Contract
--------------------------------------------------------------
Dow Jones' Daily Bankruptcy Review reports that Chrysler Group LLC
and the United Auto Workers will begin hammering out the final
details of a new labor contract that could go to the union's rank
and file for a vote by the end of the week.
About Chrysler
Chrysler Group LLC, formed in 2009 from a global strategic
alliance with Fiat Group, produces Chrysler, Jeep(R), Dodge, Ram
Truck, Mopar(R) and Global Electric Motorcars (GEM) brand vehicles
and products. Headquartered in Auburn Hills, Michigan, Chrysler
Group LLC's product lineup features some of the world's most
recognizable vehicles, including the Chrysler 300, Jeep Wrangler
and Ram Truck. Fiat will contribute world-class technology,
platforms and powertrains for small- and medium-sized cars,
allowing Chrysler Group to offer an expanded product line
including environmentally friendly vehicles.
Chrysler LLC and 24 affiliates on April 30, 2009, sought Chapter
11 protection from creditors (Bankr. S.D.N.Y (Mega-case), Lead
Case No. 09-50002). Chrysler hired Jones Day, as lead counsel;
Togut Segal & Segal LLP, as conflicts counsel; Capstone Advisory
Group LLC, and Greenhill & Co. LLC, for financial advisory
services; and Epiq Bankruptcy Solutions LLC, as its claims agent.
Chrysler has changed its corporate name to Old CarCo following its
sale to a Fiat-owned company. As of December 31, 2008, Chrysler
had $39,336,000,000 in assets and $55,233,000,000 in debts.
Chrysler had $1.9 billion in cash at that time.
In connection with the bankruptcy filing, Chrysler reached an
agreement with Fiat SpA, the U.S. and Canadian governments and
other key constituents regarding a transaction under Section 363
of the Bankruptcy Code that would effect an alliance between
Chrysler and Italian automobile manufacturer Fiat. Under the
terms approved by the Bankruptcy Court, the company formerly known
as Chrysler LLC on June 10, 2009, formally sold substantially all
of its assets, without certain debts and liabilities, to a new
company that will operate as Chrysler Group LLC.
Fiat has a 20% equity interest in Chrysler Group.
The U.S. and Canadian governments provided Chrysler with
$4.5 billion to finance its bankruptcy case. Those loans are to
be repaid with the proceeds of the bankruptcy estate's
liquidation.
* * *
As reported in the Troubled Company Reporter on June 6, 2011,
Standard & Poor's Ratings Services assigned its 'B+' corporate
credit rating to Chrysler Group LLC. The rating outlook is stable.
"At the same time, we assigned our issue-level rating to
Chrysler's $4.3 billion senior bank facilities ('BB') and $3.2
billion second-lien notes ('B'). The recovery ratings are '1' and
'5'. The company recently completed this financing," S&P stated.
COALINGA REDEVELOPMENT: S&P Lowers Rating on Tax Bonds to 'BB'
--------------------------------------------------------------
Standard & Poor's Ratings Services lowered its rating on Coalinga
Redevelopment Agency, Calif.'s series 2009C tax allocation bonds
six notches to 'BB' from 'A'. The outlook is negative.
The downgrade reflects Standard & Poor's opinion of a cumulative
12.6% decline in total project area assessed value since fiscal
2009, coupled with a high volatility ratio for the statutory pass-
through tax base, which has reduced debt service coverage by
calculated pass-through revenue to below 1x.
The negative outlook reflects the agency's insufficient pledged
revenue and its reliance on unpledged resources or a recovery in
the tax base to avoid using the debt service reserve fund.
"Should management's use or transfer of the agency's unpledged
resources result in a debt service reserve fund drawdown, we could
lower the rating further," said Standard & Poor's credit analyst
Sussan Corson.
The rating also reflects Standard & Poor's opinion of:
The agency's declining assessed value over the past few years
that has reduced coverage below 1x -- The rate of decline,
however, has slowed over the past two years;
The tax base's high volatility ratio that determines pledged
statutory pass-through payments;
A fully funded debt service reserve fund with $65,351 in cash
invested with Wells Fargo; and
A primarily residential project area in Fresno County that
maintains, what Standard & Poor's considers, a diverse tax
base.
Certain pass-through payments from the project area to West Hills
Community College District and Coalinga secure the series 2009C
bonds.
COMPASS GROUP: S&P Revises Rating on $275-Mil. Credit to 'BB+'
--------------------------------------------------------------
Standard & Poor's Ratings Services corrected its ratings on
Compass Group Diversified Holdings LLC's $275 million revolving
credit facility due 2016, to 'BB+' from 'BB-'. "This action
results from correcting our recovery rating to '1', indicating our
expectation of 'very high' (90% to 100%) recovery in the event of
a payment default, from '3' (50% to 70%) expected recovery)," S&P
related.
"At the same time, we affirmed our 'BB-' rating on the company's
$225 million term loan B due 2017, but corrected the recovery
rating to '4', indicating our expectation of 'average' (30%-50%)
recovery in the event of a payment default, from '3'," S&P said.
"Our corporate credit rating on Compass Group remains at 'BB-' and
the rating outlook is stable," S&P related.
"In applying our recovery rating methodology to Compass Group's
proposed credit facility, we incorrectly interpreted the payment
priority of the senior secured revolving credit facility and
senior secured term loan. Under the proposed financing, the
revolving credit facility will rank senior in payment priority to
obligations outstanding under the term loan rather than pari passu
as we initially concluded in our reports published Oct. 3 and Oct.
4," S&P said.
CONGRESSIONAL HOTEL: Gets OK to Hire James M. Greenan as Counsel
----------------------------------------------------------------
The Hon. Paul Mannes of the U.S. Bankruptcy Court for the District
of Maryland authorized Congressional Hotel Corp. and Casco Hotel
Group, LLC, to employ James M. Greenan, Esq., and McNamee Hosea
Jernigan Kim Greenan & Lynch, P.A., as counsel.
To the best of the Debtors' knowledge, the firm is a
"disinterested person" as that term is defined in Section 101(14)
of the Bankruptcy Code.
The Court also ordered that the $11,000 will be reimbursed to the
estate by the non-debtor party.
About Congressional Hotel and CASCO Hotel Group
Casco Hotel Group, LLC, owns the Legacy Hotel in Rockville,
Maryland. Congressional Hotel Corporation is a holdover tenant on
the Property and manages the Property on behalf of CASCO. The
hotel was previously known as Ramada Inn.
Congressional Hotel filed for Chapter 11 relief (Bankr. D. Md.
Case No. 11-26732) on Aug. 15, 2011. CASCO filed for Chapter 11
relief (Bankr. D. Md. Case No. 11-26880) two days later.
CASCO is a single-asset real estate company. Casco Hotel
disclosed $17,810,966 in assets and $14,053,752 in liabilities as
of the Chapter 11 filing. Congressional Hotel scheduled $709,121
in assets and $19,883,667 in debts. James Greenan, Esq., at
McNamee Hosea, represents Congressional Hotel.
Congressional Hotel previously filed for Chapter 11 bankruptcy
(Bankr. D. Md. Case No. 09-17901) on May 3, 2009. James Greenan,
Esq., at McNamee Hosea represented the Debtor in its restructuring
efforts. The 2009 petition estimated the Debtor's assets and
debts from $10 million to $50 million. The case was dismissed on
May 18, 2011, at the request of creditor Mervis Diamond Corp. But
a resolution couldn't be confirmed with Mervis Diamond and other
creditors, prompting Congressional Hotel to seek Chapter 11
protection again.
CRAWFORD FURNITURE: Files Schedules of Assets and Liabilities
-------------------------------------------------------------
Crawford Furniture Mfg. Corp. filed with the U.S. Bankruptcy Court
for the Western District of New York its schedules of assets and
liabilities, disclosing:
Name of Schedule Assets Liabilities
---------------- ----------- -----------
A. Real Property $1,630,400
B. Personal Property $6,958,570
C. Property Claimed as
Exempt
D. Creditors Holding
Secured Claims $783,166
E. Creditors Holding
Unsecured Priority
Claims $32,461
F. Creditors Holding
Unsecured Non-priority
Claims $725,574
----------- -----------
TOTAL $8,588,970 $1,541,201
Debtor-affiliate Crawford Furniture Retail Outlet, Inc., also
filed its schedules, disclosing $1,476,292 in assets and
$8,007,128 in liabilities as of the Chapter 11 filing.
About Crawford Furniture
Crawford Furniture Manufacturing Corp., of Jamestown, New York,
has been a leading manufacturer for more than 120 years of quality
100% solid wood furniture. Manufacturing was started in 1883 by
two Swedish craftsmen and was originally known as the Swedish
Furniture Manufacturing Corporation. Manufacturing specializes in
the manufacture of bedroom and dining room furniture from solid
wood, specifically ash, cherry, maple and oak, that is purchased
within a 150-mile radius of its factory in Jamestown.
Crawford Furniture Retail Outlet, Inc., has operated five retail
stores in western New York since 2004. Retail also operates a
warehouse/delivery depot at Benderson Development Park, in
Cheektowaga, New York.
Crawford Furniture Manufacturing filed for Chapter 11 bankruptcy
(Bankr. W.D.N.Y. Lead Case No. 11-12945) on Aug. 25, 2011.
Camille W. Hill, Esq., at Bond, Schoeneck & King, PLLC, serves as
the Debtors' counsel. Crawford Furniture Manufacturing estimated
assets at $10 million to $50 million and debts at $1 million to
$10 million. Retail filed a separate Chapter 11 petition on the
same day. The cases are jointly administered.
The U.S. Trustee has appointed an official committee of unsecured
creditors in the case.
CURTIS NELSON: Judge Converts Case to Chapter 7 Liquidation
-----------------------------------------------------------
The Minneapolis/St. Paul Business Journal reports that Carlson
Cos. Inc. president Curtis Carlson Nelson says he won't be able to
repay more than $40 million owed to his creditors.
According to the report, U.S. Bankruptcy Judge Robert Kressel has
ordered liquidation in the bankruptcy case of the embattled
Minnetonka businessman, the grandson of Carlson Cos. founder Curt
Carlson who was once in line to run his family's hospitality
empire.
The report says Judge Kressel converted the case to Chapter 7 last
week, but there's not much for his creditors to recover.
About Curtis Nelson
Curtis Nelson filed a Chapter 11 petition (Bankr. D. Minn. Case
No. 11-43113) on May 2, 2011, disclosing assets of $4.24 million,
and liabilities of $41.25 million. He has tapped Thomas G.
Wallrich, Esq., at Hinshaw & Culbertson LLP, as counsel in the
Chapter 11 case.
The Debtor was hospitalized with what police called a mental
health crisis in March 2011. That followed a $3.8 million
judgment entered against Mr. Nelson for money owed to Edina-based
Crown Bank and the bankruptcy of his automotive marketing company.
Mr. Nelson also owes $7 million to a trust in the name of his
grandfather and Carlson Cos. founder, Curtis L. Carlson, and $3.05
million to JPMorgan Chase Bank for the mortgage on two Minnetonka
properties.
Mr. Nelson owns Curtis Co. One LLC, subsidiaries of which include
Curt Co. Investments LLC, CCN and MAN Properties LLC, Curt Co.
Customer LLC, Curt Co. Real Estate LLC, Curt Co. Condos LLC, Curt
Co. Commodities LLC, Moccia Inc., Exponential Fund One LP,
Exponential Funds One LLC and 72.55% of Visible Customer Holdings
LLC.
D/K MECHANICAL: Case Summary & 20 Largest Unsecured Creditors
-------------------------------------------------------------
Debtor: D/K Mechanical Contractors, Inc.
3870 E. Eagle Drive
Anaheim, CA 92807
Bankruptcy Case No.: 11-24055
Chapter 11 Petition Date: October 7, 2011
Court: United States Bankruptcy Court
Central District Of California (Santa Ana)
Judge: Robert N. Kwan
Debtor's Counsel: Michael Jay Berger, Esq.
LAW OFFICES OF MICHAEL JAY BERGER
9454 Wilshire Blvd., 6th Floor
Beverly Hills, CA 90212-2929
Tel: (310) 271-6223
Fax: (310) 271-9805
E-mail: michael.berger@bankruptcypower.com
Estimated Assets: $0 to $50,000
Estimated Debts: $1,000,001 to $10,000,000
A list of the Company's 20 largest unsecured creditors filed
together with the petition is available for free at
http://bankrupt.com/misc/cacb11-24055.pdf
The petition was signed by Gary Brubaker, president.
DAVIDSON HYDRANT: Case Summary & 20 Largest Unsecured Creditors
---------------------------------------------------------------
Debtor: Davidson Hydrant Technologies, Inc.
fdba Davidson Hydrant Security Company
P.O Box 257
Sunny Side, GA 30284
Bankruptcy Case No.: 11-13349
Chapter 11 Petition Date: October 6, 2011
Court: United States Bankruptcy Court
Northern District of Georgia (Newnan)
Debtor's Counsel: Leslie M. Pineyro, Esq.
JONES AND WALDEN, LLC
21 Eighth Street, NE
Atlanta, GA 30309
Tel: (404) 564-9300
Fax: (404) 564-9301
E-mail: lpineyro@joneswalden.com
Scheduled Assets: $293,420
Scheduled Debts: $1,116,291
A list of the Company's 20 largest unsecured creditors filed
together with the petition is available for free at
http://bankrupt.com/misc/ganb11-13349.pdf
The petition was signed by Diane Davidson, senior executive vice
president.
DEE RANDALL: Court Appoints Forensic Accountant to Take Over Biz
----------------------------------------------------------------
Insurance Journal reports that a U.S. bankruptcy court judge has
ordered a forensic accountant to take control of businesses run by
Dee Allen Randall suspected of taking $65 million from 700
investors.
According to the report, there's a hearing set for Oct. 26, 2011.
The report relates the U.S. Trustee Office says it suspects Mr.
Randall's business schemes might be fraudulent. The office says
Mr. Randall promised returns of up to 14% through investments in
real estate, auto leases and insurance and continued to solicit
funds from investors after filing for bankruptcy.
The report says Mr. Randall is also the subject of a Utah
Department of Commerce investigation.
About Dee Allen Randall
Based in Kaysville, Utah, Dee Allen Randall filed for Chapter 11
protection (Bankr. D. Utah Case No. 10-37546) on Dec. 20, 2010,
seeking to forestall creditors while he reorganized his finances.
Mr. Randall's companies include Horizon Mortgage & Investment,
Horizon Financial & Insurance Group and Horizon Auto Funding.
Judge R. Kimball Mosier presides over the case. Andres Diaz,
Esq., at 1 on 1 Legal Services, represents the Debtor. The Debtor
estimated assets of $10 million and $50 million, and debts of
between $1 million and $10 million.
DGB CONTRACTOR: Case Summary & 20 Largest Unsecured Creditors
-------------------------------------------------------------
Debtor: DGB Contractor Services
3870 E. Eagle Drive
Anaheim, CA 92807
Bankruptcy Case No.: 11-24056
Chapter 11 Petition Date: October 7, 2011
Court: United States Bankruptcy Court
Central District of California (Santa Ana)
Judge: Robert N. Kwan
Debtor's Counsel: Michael Jay Berger, Esq.
LAW OFFICES OF MICHAEL JAY BERGER
9454 Wilshire Blvd 6th Fl
Beverly Hills, CA 90212-2929
Tel: (310) 271-6223
Fax: (310) 271-9805
E-mail: michael.berger@bankruptcypower.com
Estimated Assets: $0 to $50,000
Estimated Debts: $1,000,001 to $10,000,000
A list of the Company's 20 largest unsecured creditors filed
together with the petition is available for free at
http://bankrupt.com/misc/cacb11-24056.pdf
The petition was signed by Don Giarratano, president.
EAST HARLEM: Wants Receiver to Turnover Books, Records & Documents
------------------------------------------------------------------
East Harlem Property Holdings, LP, asks the U.S. Bankruptcy Court
for the Southern District of New York to direct Harvey Fishbein,
Esq., the receiver, and EH Property Management, Inc., the property
manager, to turn over all books, records and documents pertaining
to the financial affairs of the Debtor and its assets and
liabilities.
The Debtor was informed that due to plaintiff's prepetition
denial, the receiver would not turn over the books and records
unless the Bankruptcy Court directs the receiver and the property
manager to comply with a request.
The Debtor explains that it would not be in a position to file its
schedules and statements until the receiver and property Manager
produces the books and records to the Debtor.
The Debtor adds that denial of access to information relating to
the financial affairs relating to the real properties would
effectively preclude the Debtor from moving forward with its
efforts to reorganize its affairs.
The Debtor set an Oct. 26 hearing on the requested turnover of
documents. Objections, if any, are due Oct. 19.
About East Harlem
East Harlem Property Holdings, LP, filed for Chapter 11 relief
(Bankr. S.D.N.Y. Case No. 11-14368) on Sept. 15, 2011. Judge
James M. Peck presides over the bankruptcy case. Adam P. Wofse,
Esq., at Lamonica Herbst & Maniscalco, LLP, in Wantagh, New York,
represents the Debtor as counsel. In its petition, the Debtor
listed assets of between $100 million and $500 million and debts
of between $10 million and $50 million. The petition was signed
by Linda Greenfield, vice president of Harlem Housing, LLC, sole
and managing member of East Harlem GP, LLC, general partner.
EVERGREEN SOLAR: DOE Seeks to Place Shield on Assets
----------------------------------------------------
Dow Jones' DBR Small Cap reports that moving to block Chinese
solar panel manufacturers from buying U.S.-grown technology on the
bankruptcy auction block, the U.S. Department of Energy wants to
place a legal grip on the patented manufacturing method that
Massachusetts-based Evergreen Solar Inc. invented using nearly $3
million of the agency's money.
About Evergreen Solar
Evergreen Solar, Inc. -- http://www.evergreensolar.com/--
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.
The Marlboro, Mass.-based Company filed for Chapter 11 bankruptcy
(Bankr. D. Del. Case No. 11-12590) on Aug. 15, 2011, before Judge
Mary F. Walrath. The Company's balance sheet at April 2, 2011,
showed $373,972,000 in assets, $455,506,000 in total liabilities,
and a stockholders' deficit of $81,534,000.
Ronald J. Silverman, Esq., and Scott K. Seamon, Esq., at Bingham
McCutchen LLP, serve as general bankruptcy counsel to the Debtor.
Laura Davis Jones, Esq., and Timothy P. Cairns, Esq., at Pachulski
Stang Ziehl & Jones LLP, serve as co-counsel. Zolfo Cooper LLC is
the financial advisor. Epiq Bankruptcy Solutions has been tapped
as claims agent.
In conjunction with the Chapter 11 filing, the Company 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
pursuant to 11 U.S.C. Sec. 363. 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 supporting noteholders are represented by Michael S. Stainer,
Esq., and Natalie E. Levine, Esq., at Akin Gump Strauss Hauer &
Feld LLP, in New York.
EVERGREEN SOLAR: Common Stock Quoted on Pink Sheets under "ESRLQ"
-----------------------------------------------------------------
Evergreen Solar, Inc., in August announced that it received notice
from The Nasdaq Listing Qualifications Staff stating that the
Staff had determined that the Company's securities would be
delisted from The Nasdaq Stock Market LLC, and that trading of the
Company's common stock would be suspended at the opening of
business on Aug. 24, 2011.
The Company's shares were suspended from trading and the Nasdaq
Staff determination to delist the Company became final on Aug. 24,
2011.
On Oct. 6, 20121, Nasdaq filed a Form 25-NSE with the Securities
and Exchange Commission, which removes the Company's securities
(Common Stock) from listing and registration on Nasdaq.
The delisting becomes effective ten days after the Form 25 is
filed.
The Company's common stock is currently quoted on the Pink OTC
Markets Inc. under the symbol "ESLRQ." However, the Company can
give no assurance that trading in its common stock will continue
on the Pink Sheets or on any other securities exchange or
quotation medium.
About Evergreen Solar
Evergreen Solar, Inc. -- http://www.evergreensolar.com/--
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.
The Marlboro, Mass.-based Company filed for Chapter 11 bankruptcy
(Bankr. D. Del. Case No. 11-12590) on Aug. 15, 2011, before Judge
Mary F. Walrath. The Company's balance sheet at April 2, 2011,
showed $373,972,000 in assets, $455,506,000 in total liabilities,
and a stockholders' deficit of $81,534,000.
Ronald J. Silverman, Esq., and Scott K. Seamon, Esq., at Bingham
McCutchen LLP, serve as general bankruptcy counsel to the Debtor.
Laura Davis Jones, Esq., and Timothy P. Cairns, Esq., at Pachulski
Stang Ziehl & Jones LLP, serve as co-counsel. Zolfo Cooper LLC is
the financial advisor. Epiq Bankruptcy Solutions has been tapped
as claims agent.
In conjunction with the Chapter 11 filing, the Company 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
pursuant to 11 U.S.C. Sec. 363. 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 supporting noteholders are represented by Michael S. Stainer,
Esq., and Natalie E. Levine, Esq., at Akin Gump Strauss Hauer &
Feld LLP, in New York.
FIRSTBANK PUERTO RICO: S&P Hikes Counterparty Rating to 'B+'
------------------------------------------------------------
Standard & Poor's Ratings Services removed the counterparty credit
rating on FirstBank Puerto Rico (FirstBank) from CreditWatch,
where it was placed with positive implications on July 8, 2011,
and raised the rating to 'B+' from 'CCC+'. The outlook is
stable.
First BanCorp announced that it has completed the planned capital
increase of $525 million of common stock to institutional
investors. Private-equity firms Thomas H. Lee Partners L.P. (not
rated) and Oaktree Capital Management L.P. (A-/Stable/A-2) will
each own 24.9% of the bank following the transaction. In addition,
the U.S. Treasury has converted its Troubled Assets Relief Program
(TARP)-related preferred stock to common shares, per its agreement
to do so if management could raise at least $350 million in common
equity. In total, the bank will increase common equity by roughly
$835 million.
The increase in capital and the conversion will dramatically
improve the bank's capital ratios. As of June 30, 2011, the bank
estimated that the increase raises its holding company's Tier 1
capital and tangible common equity ratios to 15.5% from 11.1% and
to 9.5% from 3.8%, respectively. "Our risk-adjusted capital ratio
(RAC), before diversification adjustments, increases to 14.8% from
5.8%," S&P said.
"We believe that FirstBank now has the much-needed capital to
absorb what we expect will be higher losses for the next several
quarters," said Standard & Poor's credit analyst Kevin Cole.
"FirstBank has reduced its troubled loan exposures through charge-
offs and sales, but we expect that substantial losses will
continue absent a strong economic recovery. As of June 30, 2011,
FirstBank's nonperforming assets (including more-than-90-days
delinquent and restructured loans) stood at 15.7% of total loans."
"Although the bank is still under the Federal Deposit Insurance
Corp.'s (FDIC) consent order, we expect that the increase in
capital will further stabilize its franchise. The additional
capital should allow the bank to pursue the profitable lines of
lending that it was forced to curtail to lower its risk-weighted
assets," S&P said.
"We expect that asset quality will somewhat stabilize in the
coming quarters. However, we do not see the bank returning to
profitability in the near term. If the bank's nonperforming assets
increase to more than 20% while the bank is unable to return to
profitability, we could lower the rating. If asset quality
deterioration was to reverse for a sustained period and we
expected profitability would likely be stable, we could raise the
rating," S&P said.
FRIENDLY ICE CREAM: Meeting to Form Creditors Committee Today
-------------------------------------------------------------
Roberta DeAngelis, United States Trustee for Region 3, will hold
an organizational meeting on Oct. 12, 2011, at 10:00 a.m. in the
bankruptcy case of Friendly Ice Cream Corp. The meeting will be
held at:
DoubleTree Hotel Wilmington
700 North King Street, Salon C
Wilmington, DE 19801
The sole purpose of the meeting will be to form a committee or
committees of unsecured creditors in the Debtors' cases.
The organizational meeting is not the meeting of creditors
pursuant to Section 341 of the Bankruptcy Code. A representative
of the Debtor, however, may attend the Organizational Meeting, and
provide background information regarding the bankruptcy cases.
To increase participation in the Chapter 11 proceeding, Section
1102 of the Bankruptcy Code requires that the United States
Trustee appoint a committee of unsecured creditors as soon as
practicable. The Committee ordinarily consists of the persons,
willing to serve, that hold the seven largest unsecured claims
against the debtor of the kinds represented on the committee.
Section 1103 of the Bankruptcy Code provides that the Committee
may consult with the debtor, investigate the debtor and its
business operations and participate in the formulation of a plan
of reorganization. The Committee may also perform other services
as are in the interests of the unsecured creditors whom it
represents.
About Friendly's
Friendly Ice Cream Corp. -- http://www.friendlys.com/-- the owner
and franchiser of 490 full-service, family-oriented restaurants
and provider of ice cream products in the Eastern United States,
filed for Chapter 11 reorganization together with four affiliates
(Bankr. D. Del. Lead Case No. 11-13167) on Oct. 5, 2011, to sell
the business mostly in exchange for debt to Sundae Group Holdings
II LLC, a unit of Sun Capital Partners Inc. The existing owner
and holder of the Debtors' second-lien debt are also affiliates of
Sun Capital. Friendly's, based in Wilbraham, Massachusetts, also
announced the closing of 63 stores, leaving about 424 operating.
Franchise operators have about 230 of the locations.
Judge Kevin Gross oversees the case. James A. Stempel, Esq., Ross
M. Kwasteniet, Esq., and Jeffrey D. Pawlitz, Esq., at Kirkland &
Ellis LLP; and Laura Davis Jones, Esq., Timothy P. Cairns, Esq.,
and Kathleen P. Makowski, Esq., at Pachulski Stang Ziehl & Jones
LLP, serve as the Debtors' bankruptcy counsel. Zolfo Cooper
serves as the Debtors' financial advisors. Epiq Bankruptcy
Solutions, LLC, serves as the Debtors' claims and notice agent.
In its petition, Friendly Ice Cream Corp. estimated $100 million
to $500 million in assets and debts. The petitions were signed by
Steven C. Sanchioni, executive vice president, chief financial
officer, treasurer, and assistant secretary.
Sundae Group Holdings proposes to pay about $120 million for the
business. The price includes enough cash to pay first-lien debt
and an amount of cash for unsecured creditors to be negotiated
with the official creditors' committee. Aside from cash, Sun
Capital will make a credit bid from the $267.7 million in second-
lien, pay-in-kind notes.
The bid from Sun Capital is subject to higher and better offers
at an auction. Under the proposed time-line, bids would be due
Nov. 24, followed by an auction on Dec. 1. A competing bid must
be at least $122.6 million in cash.
Friendly's is the second company under Sun Capital's portfolio to
file for bankruptcy in a span of two days. Mexican-food chain
Real Mex, which operates restaurants such as Chevys, filed in
Delaware bankruptcy court on Oct. 3, 2011.
GAC STORAGE: Voluntary Chapter 11 Case Summary
----------------------------------------------
Debtor: GAC Storage Lansing, LLC
17333 Oak Ave.
Lansing, IL 60438
Bankruptcy Case No.: 11-40944
Chapter 11 Petition Date: October 7, 2011
Court: United States Bankruptcy Court
Northern District of Illinois (Chicago)
Judge: Jacqueline P. Cox
Debtor's Counsel: Robert M Fishman, Esq.
SHAW GUSSIS FISHMAN GLANTZ WOLFSON
321 N Clark Street, Suite 800
Chicago, IL 60610
Tel: (312) 666-2842
Fax: (312) 275-0567
E-mail: rfishman@shawgussis.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
The Debtor did not file a list of its largest unsecured creditors
together with its petition.
The petition was signed by Noam Schwartz, secretary and treasurer
of EBM Mgmt Servs, Inc., manager of GAC Storage, LLC.
Affiliate that filed separate Chapter 11 petition:
Petition
Debtor Case No. Date
------ -------- ----
GAC Storage Copley Place, LLC 11-40953 10/07/11
Assets: $1,000,001 to $10,000,000
Debts: $1,000,001 to $10,000,000
GARLOCK SEALING: Denied Access to Docs in Asbestos Bankruptcies
---------------------------------------------------------------
Bankruptcy Judge Judith K. Fitzgerald in a sweeping decision
denied all three motions by Garlock Sealing Technologies, Inc., to
access statements filed under Fed.R.Bankr.P. 2019 in 12 asbestos-
related bankruptcy cases and motions to intervene in each of those
cases. Judge Fitzgerald also denied Garlock's request to reopen
those cases that are closed. The judge said Garlock is not
entitled to intervene in those cases or access the 2019 statements
at this time. It is also not appropriate to reopen the cases that
are closed.
The asbestos cases are those of:
Bankruptcy Court Debtors
---------------- -------
A. U.S. Bankruptcy Court * Owens Corning
for the District of * ACandS, Inc.
Delaware * Armstrong World Industries, Inc.
* Combustion Engineering, Inc.
* The Flintkote Company
* Kaiser Aluminum Corp.
* US Mineral Products Company
* USG Corp.
* W.R. Grace & Co.
B. U.S. Bankruptcy Court * Mid-Valley, Inc.
for the Western District * North American Refractories Co.
of Pennsylvania * Pittsburgh Corning Corp.
Garlock wants to examine the 2019 statements filed by every law
firm involved in the bankruptcy cases, whether or not the firm's
clients have claims against Garlock. Garlock also asserts that it
"likely is or was a party in interest in" the bankruptcy cases and
"likely is or was a party" or party in interest to personal injury
cases in the tort system in which various debtors were sued
because it "was routinely sued in asbestos personal injury cases
with the debtors."
The Court, however, noted that Garlock is no longer a defendant in
the tort system and has never filed a claim in any of the
bankruptcy cases. Thus, it has never established that it is or
was a party or a party in interest in the bankruptcy cases.
Judge Fitzgerald also held that although Garlock asserts its own
interests, it has not alleged other than an imagined harm and does
not meet the "zone of interest" test for prudential standing.
Garlock's action to examine the 2019 statements is as generalized
a grievance as can be asserted in these circumstances.
In refusing to open the closed cases, Judge Fitzgerald explained
that the consequences to the debtors of reopening the closed
cases, some having emerged from bankruptcy after nearly a decade,
would be enormous. The negative publicity with the likely effect
on stock and bond prices for those publicly traded entities,
employee morale, resulting management issues and administrative
burdens in complying with Bankruptcy Code filing requirements
regarding operating reports and disclosure of information, and
U.S. Trustee fees and expenses attendant to the bankruptcy system,
cannot be justified in these circumstances where Garlock did not
appear or participate while the cases were open and active and did
not seek access to the 2019s during the life of the cases.
Similarly, the cases that are still open are nearing the end of
their bankruptcy adventures with plans either already confirmed or
confirmation pending -- the debtor in Pittsburgh Corning still has
an opportunity to file an amended plan and the plan confirmation
hearing in Flintkote has concluded with post-trial briefing
pending.
A copy of Judge Fitzgerald's Oct. 7-dated Memorandum Opinion is
available at http://is.gd/6gI16ufrom Leagle.com.
About Garlock Sealing
Headquartered in Palmyra, New York, Garlock Sealing Technologies
LLC is a unit of EnPro Industries, Inc. (NYSE: NPO). For more
than a century, Garlock has been helping customers efficiently
seal the toughest process fluids in the most demanding
applications.
On June 5, 2010, Garlock filed a voluntary Chapter 11 petition
(Bankr. W.D. N.C. Case No. 10-31607) in Charlotte, North Carolina,
to establish a trust to resolve all current and future asbestos
claims against Garlock under Section 524(g) of the U.S. Bankruptcy
Code. The Debtor estimated $500 million to $1 billion in assets
and up to $500 million in debts as of the Petition Date.
Affiliates The Anchor Packing Company and Garrison Litigation
Management Group, Ltd., also filed for bankruptcy.
The filing covers only Garlock operations in Palmyra, New York and
Houston, Texas. Garlock Rubber Technologies, Garlock Helicoflex,
Pikotek, Technetics, Garlock Europe and Garlock operations in
Canada, Mexico or Australia are not affected by the filing, nor is
EnPro Industries or any other EnPro operating subsidiary.
Albert F. Durham, Esq., at Rayburn Cooper & Durham, P.A.,
represents the Debtor in its Chapter 11 effort. Garland S.
Cassada, Esq., at Robinson Bradshaw & Hinson, serves as counsel
for asbestos matters.
The Official Committee of Asbestos Personal Injury Claimants in
the Chapter 11 cases is represented by Travis W. Moon, Esq., at
Hamilton Moon Stephens Steele & Martin, PLLC, in Charlotte, NC,
Elihu Inselbuch, Esq., at Caplin & Drysdale, Chartered, in New
York, and Trevor W. Swett III, Esq., Leslie M. Kelleher, Esq., and
Jeanna Rickards Koski, Esq., in Washington, D.C. 20005.
Joseph W. Grier, III, the Court-appointed legal representative for
future asbestos claimants, has retained A. Cotten Wright, Esq., at
Grier Furr & Crisp, PA, and Richard H. Wyron, Esq., and Jonathan
P. Guy, Esq., at Orrick, Herrington & Sutcliffe LLP, as his co-
counsel.
About 124,000 asbestos claims are pending against Garlock in
stateand federal courts across the country. The Company says
majority of pending asbestos actions against it is stale and
dormant -- almost 110,000 or 88% were filed more than four years
ago and more than 44,000 or 35% were filed more than 10 years ago.
GLOBAL CROSSING: S&P Withdraws 'B' Corporate Credit Rating
----------------------------------------------------------
Standard & Poor's Ratings Services withdrew its 'B' corporate
credit rating on Bermuda-based Global Crossing Ltd. (GCL). This
action follows the completion of Level 3's acquisition of GCL on
October 4, 2011.
At the same time, the issue-level and recovery ratings on GCL's
outstanding debt are unaffected by the withdrawal of the corporate
credit rating. Level 3 plans to redeem all of GCL's debt in early
November. Specifically, Level 3 said it would redeem 35% of the
GCL 12% senior notes due 2015 and 35% of the GCL senior notes due
2019 on Nov. 3, with the remaining 65% of each issue redeemed on
Nov. 4. The GCUK notes due 2014 would be redeemed on Nov 3. "We
will withdraw the issue-level and recovery ratings on the GCL debt
when this redemption occurs," S&P said.
GRACEWAY PHARMACEUTICALS: Meeting to Form Creditors Panel Oct. 11
-----------------------------------------------------------------
Roberta DeAngelis, United States Trustee for Region 3, was
scheduled to hold an organizational meeting on Oct. 11, 2011, at
10:00 a.m. in the bankruptcy case of Graceway Pharmaceuticals,
LLC. The sole purpose of the meeting will be to form a committee
or committees of unsecured creditors in the Debtors' cases.
The organizational meeting is not the meeting of creditors
pursuant to Section 341 of the Bankruptcy Code. A representative
of the Debtor, however, may attend the Organizational Meeting, and
provide background information regarding the bankruptcy cases.
To increase participation in the Chapter 11 proceeding, Section
1102 of the Bankruptcy Code requires that the United States
Trustee appoint a committee of unsecured creditors as soon as
practicable. The Committee ordinarily consists of the persons,
willing to serve, that hold the seven largest unsecured claims
against the debtor of the kinds represented on the committee.
Section 1103 of the Bankruptcy Code provides that the Committee
may consult with the debtor, investigate the debtor and its
business operations and participate in the formulation of a plan
of reorganization. The Committee may also perform other services
as are in the interests of the unsecured creditors whom it
represents.
About Graceway Pharmaceuticals
Based in Bristol, Tennessee, Graceway Pharmaceuticals LLC engages
in pharmaceutical development. The company offers dermatology,
respiratory, and women's health products. Its Zyclara Cream is
used for the treatment of external genital and perianal warts
(EGW) in patients 12 years of age and older. The company offers
products for the treatment of dermatology conditions, such as
actinic keratosis, superficial basal cell carcinoma, external
genital warts, atopic dermatitis, and acne; and respiratory
conditions, such as asthma.
Graceway Pharmaceuticals and its affiliates filed Chapter 11
bankruptcy petitions (Bankr. D. Del. Lead Case No. 11-13036) on
Sept. 29, 2011.
Graceway intends to sell essentially all of its assets pursuant to
Section 363 of the Bankruptcy Code. Switzerland's Galderma SA has
been selected as a stalking horse bidder, but the final buyer will
be determined through an auction process and, ultimately, by the
Bankruptcy Court over the course of the next few months.
The company's debt includes $430.7 million owing on a first-lien
revolving credit and term loan. Second-lien debt is $330 million,
with mezzanine debt totaling another $81.4 million.
The company said the sale has the consent of holders of 40% of the
first-lien debt, which means the sale could be opposed by holders
of 60% of the senior debt.
Attorneys at Young Conaway Stargatt & Taylor LLP, serve as counsel
to the Debtors. Latham & Watkins LLP is the co-counsel. Alvarez
And Marsal North America, LLC, is the financial advisor. Lazard
Freres & Co. LLC is the investment banker. PricewaterhouseCoopers
LLP is the tax consultant.
GRACEWAY PHARMACEUTICALS: S&P Withdraws 'D' Corp. Credit Rating
---------------------------------------------------------------
Standard & Poor's Ratings Services withdrew all of its ratings,
including its 'D' corporate credit rating, on Bristol, Tenn.-based
Graceway Pharmaceuticals LLC because of a lack of adequate
information.
Graceway Pharmaceuticals is a specialty pharmaceutical company
focusing on dermatology. The rating withdrawal follows the
company's downgrade to 'D', after it filed for Chapter 11
protection under the U.S. Bankruptcy code on Sept. 29, 2011.
GSC GROUP: Bankruptcy Judge Approves Disclosure Statement
---------------------------------------------------------
Dow Jones' DBR Small Cap reports that GSC Group Inc.'s creditors
may begin voting on a plan to pay them more than a year after the
former investment-management firm sought Chapter 11 protection, a
bankruptcy judge ruled.
The Plan calls for all GSC equity interests to be canceled, and
all the remaining assets -- those not included in the $235 million
sale to Black Diamond Capital Management LLC -- going to a
liquidating trust. Holders of general unsecured claims are
expected to recover 84% of their claims.
About GSC Group
Florham Park, New Jersey-based GSC Group, Inc. --
http://www.gsc.com/-- is a private equity firm specializing in
mezzanine and fund of fund investments. Originally named
Greenwich Street Capital Partners Inc. when it was a subsidiary of
Travelers Group Inc., GSC became independent in 1998 and at one
time had $28 billion of assets under management. Market reverses,
termination of some funds, and withdrawal of customers'
investments reduced funds under management at the time of
bankruptcy to $8.4 billion.
GSC Group filed for Chapter 11 bankruptcy protection (Bankr.
S.D.N.Y. Case No. 10-14653) on Aug. 31, 2010. Michael B. Solow,
Esq., at Kaye Scholer LLP, serves as the Debtor's bankruptcy
counsel. Epiq Bankruptcy Solutions, LLC, is the Debtor's notice
and claims agent. Capstone Advisory Group, LLC, is the Debtor's
financial advisor. The Debtor estimated its assets at $1 million
to $10 million and debts at $100 million to $500 million as of the
Chapter 11 filing.
Since Jan. 7, 2011, the Debtors have been operated by James L.
Garrity Jr., as Chapter 11 trustee for the Debtors. No committee
of unsecured creditors has been appointed in the Chapter 11 Cases.
U.S. Bankruptcy Judge Arthur Gonzalez had approved the sale of the
Company's assets in July 2011 to Black Diamond Capital Management
LLC, to whom it had owed $209 million when it filed for Chapter 11
protection. The sale to the Black Diamond-led secured lenders is
valued at $235 million. A minority group of lenders filed an
appeal from the sale order but failed to stop closing of the sale.
GSC GROUP: Trustee Wants Epiq to Prepare Solicitation Packages
--------------------------------------------------------------
James L. Garrity, Jr., Chapter 11 trustee for GSC Group, Inc., et
al., asks the U.S. Bankruptcy Court for the Southern District of
New York for authorization to expand the scope of retention of
Epiq Bankruptcy Solutions, LLC, as solicitation and voting agent.
Epiq will, among other things, provide solicitation services
effective as of Oct. 5, 2011, to ensure that Epiq may prepare the
solicitation packages and serve all required parties during the
timeframe proposed in the Trustee's motion to approve the
Disclosure Statement.
Additionally, the Trustee would like to ensure Epiq is compensated
for the solicitation services, which are a benefit to the Debtors,
their estates and creditors.
Jane Sullivan, executive vice president at Epiq, tells the Court
that the hourly rates of Epiq's personnel are:
Title Hourly Rate Range Average Rate
----- ----------------- ------------
Clerk $36 - $54 $45
Case Manager (Level 1) $112 - $157 $128
IT Programming Consultant $126 - $171 $148
Case Manager (Level 2) $166 - $198 $182
Senior Case Manager $202 - $247 $222
Senior Consultant $265 $265
Senior Public Securities
Solicitation Consultant $360 - $415 $387
Ms. Sullivan assures the Court that Epiq is a "disinterested
person" as that term is defined in section 101(14) of the
Bankruptcy Code.
The Chapter 11 trustee is represented by:
Andrew V. Tenzer, Esq.
Susan A. Fennessey, Esq.
Randall L. Martin, Esq.
SHEARMAN & STERLING LLP
599 Lexington Avenue
New York, NY 10022
Tel: (212) 848-4000
Fax: (646) 848-7799
E-mail: atenzer@shearman.com
sfennessey@shearman.com
randy.martin@shearman.com
About GSC Group
Florham Park, New Jersey-based GSC Group, Inc. --
http://www.gsc.com/-- is a private equity firm specializing in
mezzanine and fund of fund investments. Originally named
Greenwich Street Capital Partners Inc. when it was a subsidiary of
Travelers Group Inc., GSC became independent in 1998 and at one
time had $28 billion of assets under management. Market reverses,
termination of some funds, and withdrawal of customers'
investments reduced funds under management at the time of
bankruptcy to $8.4 billion.
GSC Group filed for Chapter 11 bankruptcy protection (Bankr.
S.D.N.Y. Case No. 10-14653) on Aug. 31, 2010. Michael B. Solow,
Esq., at Kaye Scholer LLP, serves as the Debtor's bankruptcy
counsel. Epiq Bankruptcy Solutions, LLC, is the Debtor's notice
and claims agent. Capstone Advisory Group, LLC, is the Debtor's
financial advisor. The Debtor estimated its assets at $1 million
to $10 million and debts at $100 million to $500 million as of the
Chapter 11 filing.
Since Jan. 7, 2011, the Debtors have been operated by James L.
Garrity Jr., as Chapter 11 trustee for the Debtors. No committee
of unsecured creditors has been appointed in the Chapter 11 Cases.
U.S. Bankruptcy Judge Arthur Gonzalez had approved the sale of the
Company's assets in July to Black Diamond, to whom it had owed
$209 million when it filed for Chapter 11 protection in August
2010.
HARBOUR EAST: FBS Work Now Includes 2011 Property Tax
-----------------------------------------------------
Last year Harbour East Development, Ltd., filed an expedited
application for employment of Mitchell A. Feldman and FBS Property
Tax Abatement, LLC to Investigate and pursue appeal of property
value assessment for property tax purposes nunc pro tunc to Sept.
7, 2010.
The Debtor wishes to have FBS investigate and pursue an appeal of
property value assessment for 2011 property tax purposes.
Although the Original FBS Retention Order authorized the Debtor's
retention of FBS, it did not explicitly specify whether such
retention applied exclusively to tax year 2010.
Susbequently, the Debtor sought and obtained an order expanding
the scope of the Debtor's retention of FBS to include tax year
2011.
About Harbour East Development
Harbour East Development, Ltd., is the developer and owner of the
luxury residential condominium development known as CIELO on the
Bay located at 7935 East Drive, North Bay Village. CIELO contains
35 residential condominium units.
Harbour East filed for Chapter 11 bankruptcy (Bankr. S.D. Fla.
Case No. 10-20733) on April 22, 2010. Michael L. Schuster, Esq.,
who has an office in Miami, Florida, represents the Debtor. The
Company estimated assets and debts at $10 million to $50 million,
as of the Chapter 11 filing.
Judge Cristol denied the request of 7935 NBV LLC's request to
dismiss the case.
No creditors' committee has been appointed in the case. In
addition, no request for the appointment of a trustee or examiner
has been made.
HAYES LEMMERZ: S&P Puts 'B' Credit Rating on Watch Developing
-------------------------------------------------------------
Standard & Poor's Ratings Services placed its 'B' corporate credit
rating on Northville, Mich.-based auto supplier Hayes Lemmerz,
along with its ratings on the company's subsidiaries, on
CreditWatch with developing implications. "Developing implications
mean that we could affirm, raise, or lower the ratings depending
on the outcome of our review. We could also withdraw our ratings,"
S&P said.
The rating action on Hayes reflects the announcement that Iochpe-
Maxion S.A.'s subsidiary, Iochpe Holdings LLC, signed an agreement
to acquire Hayes for a cash consideration of $725 million.
Iochpe expects to close the purchase during the first half of
2012, subject to customary closing conditions, approval of
stockholders, and regulatory approvals. "We expect Hayes to
continue to operate independently until the transaction is
completed," S&P said.
"Upon closing of the transaction, we could affirm, raise, or lower
the ratings depending on our view of the post-close business and
financial risk, including the capital structure and benefits, if
any, to the business profile from new ownership. We could also
withdraw the rating," S&P related.
"We will monitor developments relating to this transaction and
will resolve the CreditWatch listings if the sale occurs. We will
update our CreditWatch if substantive details regarding the
business strategy, financing plan, prospective capital structure,
or financial policies become available," S&P said.
HIGHLAND ESTATES: Case Summary & 20 Largest Unsecured Creditors
---------------------------------------------------------------
Debtor: Highland Estates Limited Partnership I
dba Highland Estates Mobile Home Park
24675 Gilmer Road, Suite 300
Hawthorn Woods, IL 60047
Bankruptcy Case No.: 11-40885
Chapter 11 Petition Date: October 7, 2011
Court: United States Bankruptcy Court
Northern District of Illinois (Chicago)
Judge: Carol A. Doyle
Debtor's Counsel: Jonathan D. Golding, Esq.
THE GOLDING LAW OFFICES, P.C.
500 N. Dearborn St., 2nd Fl.
Chicago, IL 60654
Tel: (312) 832-7892
Fax: (312) 755-5720
E-mail: jgolding@goldinglaw.net
Estimated Assets: $0 to $50,000
Estimated Debts: $1,000,001 to $10,000,000
A list of the Company's 20 largest unsecured creditors filed
together with the petition is available for free at
http://bankrupt.com/misc/ilnb11-40885.pdf
The petition was signed by David Goldman for Goldman Partners
XVII, Inc., president of corporate general partner.
HMC/CAH CONSOLIDATED: 12 Hospitals Seek Ch. 11 Protection
---------------------------------------------------------
HMC/CAH Consolidated, Inc., and 12 affiliates sought Chapter 11
protection (Bankr. W.D. Mo. Case No. 11-44738) on Oct. 10, 2011.
HMC/CAH Consolidated is in the business of acquiring and operating
a system of acute care hospitals located in rural communities that
are certified by The Centers for Medicare and Medicaid Services as
Critical Access Hospitals or CAHs. The core focus of HMC/CAH's
business plan is to replace the technologically out of date and
operationally inefficient medical facilities of its CAHs with
newly constructed state-of-the art facilities. Since its
incorporation, HMC/CAH has purchased 12 rural hospitals certified
as Critical Access Hospitals. The CAH Hospitals are located in
these states: Kansas (3), Oklahoma (5), Missouri (1), Tennessee
(1) and North Carolina (2).
The Debtors project to incur a net loss of $2.3 million for fiscal
2011. In fiscal 2010, when the Debtors began with only 8
hospitals, the net loss was $9.4 million.
The Debtors anticipate that, if the mezzanine lender had not
breached the Mezzanine Funding Agreement, the Debtors would have
generated a consolidated profit in the amount of $800,000 for
fiscal year 2012.
According to a court filing, the mezzanine lender to certain of
the Debtors, HPCG Hospital Investment LLC, has refused to meet its
funding obligations with regard to certain of the Debtors'
hospital projects and has been the primary cause of the Debtors'
filings pursuant to chapter 11 of the Bankruptcy Code.
The Debtors anticipate that the bankruptcy proceeding will enable
them to effectively address their outstanding debt issues and
enable them to focus on their core mission of providing quality
healthcare to rural residents.
HMC/CAH estimated $10 million to $50 million in assets and debts
as of the Chapter 11 filing.
HOTEL AIRPORT: Employs RS & Associates as External Auditor
----------------------------------------------------------
Hotel Airport, Inc. sought and obtained authority to employ RS &
Assoc. ? PSC as external auditors to perform auditing services.
The Debtor will pay based on the firm's $125 hourly rate for
partners; $110 for director, $90 for managers, and $75 for other
staff members. The Debtor will also reimburse the firm's
necessary out-of-pocket expenses.
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. The Debtor disclosed
US$8,547,993 in assets and US$171,169,392 in liabilities as of the
Chapter 11 filing. The petition was signed by David Tirri, its
president.
HUDSON HEALTHCARE: MedAssets Says Hoboken City Deal Unnecessary
---------------------------------------------------------------
Party-in-interest MedAssets Net Revenue Systems, LLC, filed with
the U.S. Bankruptcy Court for the District of New Jersey its
limited objection to Hudson Healthcare, Inc.'s:
i) motion to approve a compromise and settlement among the
Debtor, the Hoboken Municipal Hospital Authority, and the City
of Hoboken, New Jersey for itself and on behalf of the Hoboken
Parking Utility; and
ii) motion to sell substantially all of its assets, including
Hoboken University Medical Center, outside the ordinary course
of business pursuant to a private sale.
MedAssets relates that prepetition, it commenced an action in the
Superior Court of New Jersey against the Debtor, the Hospital and
Apollo Health Street, Inc., involving their repudiation and
refusal to perform certain contractual obligations whereby
MedAssets agreed to assist the Hospital in improving its business
processes and cash flow in exchange for payment for the services
and instead Apollo began performing those services. MedAssets
then amended its complaint to assert its claims against the
authority in addition to the other defendants.
According to MedAssets, the settlement motion provides that the
Debtor is seeking a channeling injunction that would enjoin any
action by MedAssets or any other individual creditor from suing
the authority and other settling parties.
As reported in the Troubled Company Reporter on Oct. 10, 2011,
creditors of the Hoboken University Medical Center accepted a
$10.2 million settlement offer, Hoboken, N.J., city officials
said, paving the way for the sale of the cash-strapped hospital to
a for-profit medical group to proceed.
As reported in the Oct. 6, 2011 edition of the TCR, the Official
Committee of Unsecured Creditors in the Hudson Healthcare, Inc.
bankruptcy voted to approve the sale of Hoboken University Medical
Center to HUMC Holdco, LLC and to approve a global settlement by
and among the City of Hoboken, the Hoboken Municipal Hospital
Authority, HUMC, and the Committee. This decision, which will
save New Jersey's oldest operating hospital, comes after months of
HUMC Holdco working closely with the HMHA, the Department of
Health and Senior Services, and the NJ State Health Planning
Board, which formally recommended approval of the Certificate of
Need for the transfer of ownership.
MedAssets also asserts that the motion for settlement must be
denied because there is no real dispute between the Debtor and the
settling parties. No releases for the settling parties are
actually required for consummation of the proposed sale. Instead,
the authority and other settling parties are holding the proposed
sale hostage until they are relieved of any threat of any
liability to creditors of the Debtor.
MedAssets Net Revenue Systems, LLC is represented by:
James S. Richter, Esq.
WINSTON & STRAWN LLP
One Riverfront Plaza, Suite 730
Newark, NJ 07102
Tel: (973) 848-7676
E-mail: jrichter@winston.com
- and -
David Neier, Esq.
WINSTON & STRAWN LLP
200 Park Avenue
New York, NY 10166
Tel: (212) 294-6700
E-mail: dneier@winston.com
About Hudson Healthcare
Hudson Healthcare Inc. is the nonprofit operator of Hoboken
University Medical Center in Hoboken, New Jersey.
Hudson Healthcare filed for Chapter 11 protection (Bankr. D. N.J.
Case No. 11-33014) in Newark on Aug. 1, 2011, estimating assets
and debt of less than $50 million. Affiliate Hoboken Municipal
Hospital Authority also sought Chapter 11 protection.
Attorneys at Trenk, Dipasquale, Webster, et al., serve as counsel
to the Debtor. Daniel McMurray, the patient care ombudsman, has
tapped Neubert, Pepe & Monteith P.C. as his counsel effective Aug.
25, 2011. The Official Committee of Unsecured Creditors of Hudson
Healthcare has retained Sills Cummis & Gross P.C. as its counsel,
nunc pro tunc to Aug. 12, 2011.
IMUA BLUEHENS: Hearing on Cash Coll. Deal Continued Until Oct. 28
------------------------------------------------------------------
The U.S. Bankruptcy Court for the District of Hawaii has continued
until Oct. 28, 2011, at 10:00 a.m., the hearing to consider
approval of the fifth stipulation authorizing Imua Bluehens, LLC
to use cash collateral of GCCF 2007-GG11 Ka Uka Boulevard, LLC,
and the Department of Taxation, State of Hawaii.
According to the Sept. 26, hearing minutes, the Court ruled that
the existing terms will remain in place until the end of October.
As reported in the TCR on Sept. 2, 2011, as of the Petition Date,
the Debtor is indebted to Noteholder in the original loan amount
of $10,250,000, including accrued and unaccrued interest, costs
and fees, secured by a first priority mortgage and an assignment
of rents and leases against the Debtor's property located at 94
1201 Ka Uka Boulevard, Waipahu, Hawaii, being a shopping center
commonly known as Laniakea Plaza. The Department claims a junior
statutory liens against all of the Debtor's property, pursuant to
a Certificate of Tax Lien at the Bureau of Conveyances, State of
Hawaii dated Dec. 14, 2010.
According to the cash collateral order, as adequate protection:
(a) Debtor will pay the Noteholder the amount of $30,000 per
month from postpetition rents, until further order of the Court.
(b) The Noteholder and the Department are granted replacement
liens in all of the Debtor's accounts created from and after the
Petition Date and all of the Debtor's right, title and interest
under their prepetition collateral.
(c) Subject only to a carve-out, if any, the secured loan
obligations are granted and entitled to status as an
administrative expense claim pursuant to Section 507(b) of the
Bankruptcy Code.
About Imua Bluehens
Honolulu, Hawaii-based Imua Bluehens, LLC, owns the Laniakea
Plaza, a commercial retail operation. Imua Bluehens filed for
Chapter 11 bankruptcy (Bankr. D. Hawaii Case No. 11-01721) on
June 17, 2011. Judge Robert J. Faris presides over the case. The
petition was signed by James K. Kai, manager. Jerrold K. Guben,
Esq., and Jeffery S. Flores, Esq., at O'Connor Playdon & Guben
LLP, in Honolulu, Hawaii, represent the Debtor as counsel. In its
amended schedules, the Debtor disclosed $12,169,600 in assets and
$16,864,405 in liabilities. No official committee of unsecured
creditors or other statutory committee has been formed.
INNKEEPERS USA: Said to Be Near Settlement With Cerberus, Chatham
-----------------------------------------------------------------
Bill Rochelle, the bankruptcy columnist for Bloomberg News, citing
two people with knowledge of the discussions, reports that
Innkeepers USA Trust had been scheduled to begin a trial Oct. 10
alleging that Cerberus Capital Management LP and Chatham Lodging
Trust breached a contract to buy 64 hotels for $1.12 billion.
Instead, the parties negotiated over the weekend and reached
tentative settlement where the hotels will be sold for a lesser
amount. Commencement of the trial was pushed back one day and
theoretically would begin Oct. 11 absent settlement. Details on
the settlement weren't provided.
Dow Jones' Daily Bankruptcy Review said in a separate report that
Cerberus Capital is now in advanced talks on a lower price for
those properties, according to people familiar with the matter.
Cerberus Sale Collapses
In June 2011, the Bankruptcy Court confirmed Innkeepers' chapter
11 plan of reorganization. The Plan is premised on the sale of
the Company's hotel portfolio.
A joint venture between the private-equity firm Cerberus Capital
Management, L.P. and the real estate investment trust Chatham
Lodging agreed to purchase for roughly $1.12 billion the equity in
entities that own and operate 65 of the Company's hotels.
Cerberus and Chatham agreed to pay $400.5 million cash and assume
about $723.8 million mortgage debt for the hotels. Chatham
Lodging also agreed to purchase for $195 million, five of the
Company's hotels that serve as collateral for loan trusts serviced
by LNR Partners LLC. The deal for the five hotels closed in July
2011.
Cerberus and Chatham on Aug. 19 terminated a deal to acquire a
portfolio of Innkeepers USA Trust's hotels. In a statement,
Cerberus and Chatham said they had abandoned the deal "as a result
of the occurrence of a condition, change or development that could
reasonably be expected to have a material adverse effect" on
Innkeepers' business, operations or financial condition, among
other things.
The deal had a Sept. 15, 2011 deadline to close. Cerberus and
Chatham are required to pay a $20 million termination fee under
the bankruptcy court-approved asset purchase agreement.
Innkeepers insists that no changes have occurred to the hotel
owner's business that would trigger the "material adverse effect"
clause in the buyout's contract.
The Debtors filed a complaint against Cerberus, Chatham Lodging
Trust and other related defendants for breach of contract and
other claims for reneging on their commitment to acquire 64 hotels
from Innkeepers. The lawsuit is Innkeepers USA Trust v. Cerberus
Four Holdings LLC (In re Innkeepers USA Trust), 11-02557, U.S.
Bankruptcy Court, Southern District New York (Manhattan).
Innkeepers USA has won an extension until Nov. 10 of its
exclusivity periods to file a plan free from the threat of a rival
proposal. Originally, Innkeepers was going to ask for an
extension until Jan. 12 to file a plan and March 19 to solicit
credit or votes on the proposal, but a lawyer said the company had
scaled the request back to Nov. 10 and would come to court just
before that if it needs more time.
The lawsuit is INNKEEPERS USA TRUST, et al., v. CERBERUS SERIES
FOUR HOLDINGS, LLC, CHATHAM LODGING TRUST, INK ACQUISITION LLC,
AND INK ACQUISITION II LLC, Adv. Proc. No. Case No. 11-02557
(Bankr. S.D.N.Y.).
Attorneys for Cerberus are Alan R. Glickman, Esq., Howard O.
Godnick, Esq., Adam C. Harris, Esq., and Michael E. Swartz, Esq.,
at Schulte Roth & Zabel LLP, in New York, serve as counsel.
Attorneys at Wachtell, Lipton, Rosen & Katz, serve as counsel to
Chatham.
The Wall Street Journal's Mike Spector and Eliot Brown reported in
September that people familiar with the matter said creditors Five
Mile Capital Partners LLC and a unit of Lehman Brothers Holdings
Inc. are in discussions to acquire the 64 remaining hotels in a
possible deal valued at more than $1 billion.
About Innkeepers USA Trust
Innkeepers USA Trust is a self-administered Maryland real estate
investment trust with a primary business focus on acquiring
premium-branded upscale extended-stay, mid-priced limited service,
and select-service hotels.
Innkeepers, through its indirect subsidiaries, owns and operates
an expansive portfolio of 72 upscale and mid-priced extended-stay
and select-service hotels, consisting of approximately 10,000
rooms, located in 20 states across the United States.
Apollo Investment Corporation acquired Innkeepers in June 2007.
Innkeepers USA Trust and 91 affiliates filed for Chapter 11
protection (Bankr. S.D.N.Y. Case No. 10-13800) on July 19, 2010.
The Company's consolidated assets for 2009 totaled approximately
$1.5 billion. As of July 19, 2010, the Company and its affiliates
have incurred $1.29 billion of secured debt.
Paul M. Basta, Esq., at Kirkland & Ellis LLP, in New York; Anup
Sathy, P.C., Esq., Marc J. Carmel, Esq., at Kirkland & Ellis in
Chicago; and Daniel T. Donovan, Esq., at Kirkland & Ellis in
Washington, D.C., serve as counsel to the Debtors. AlixPartners
is the restructuring advisor and Marc A. Beilinson is the chief
restructuring officer. Moelis & Company is the financial advisor.
Omni Management Group, LLC, is the claims and notice agent.
Attorneys at Morrison & Foerster, LLP, represent the Official
Committee of Unsecured Creditors.
INNKEEPERS USA: Cerberus Negotiating Scaled-Down Deal for Hotels
----------------------------------------------------------------
Dow Jones' Daily Bankruptcy Review reports that Cerberus Capital
Management LP, which is being sued by Innkeepers USA Trust for
backing out of a deal to buy most of Innkeepers' hotels, is now in
advanced talks on a lower price for those properties, according to
people familiar with the matter.
About Innkeepers USA
Innkeepers USA Trust is a self-administered Maryland real estate
investment trust with a primary business focus on acquiring
premium-branded upscale extended-stay, mid-priced limited service,
and select-service hotels.
Innkeepers, through its indirect subsidiaries, owns and operates
an expansive portfolio of 72 upscale and mid-priced extended-stay
and select-service hotels, consisting of approximately 10,000
rooms, located in 20 states across the United States.
Apollo Investment Corporation acquired Innkeepers in June 2007.
Innkeepers USA Trust and 91 affiliates filed for Chapter 11
protection (Bankr. S.D.N.Y. Case No. 10-13800) on July 19, 2010.
The Company's consolidated assets for 2009 totaled approximately
$1.5 billion. As of July 19, 2010, the Company and its affiliates
have incurred $1.29 billion of secured debt.
Paul M. Basta, Esq., at Kirkland & Ellis LLP, in New York; Anup
Sathy, P.C., Esq., Marc J. Carmel, Esq., at Kirkland & Ellis in
Chicago; and Daniel T. Donovan, Esq., at Kirkland & Ellis in
Washington, D.C., serve as counsel to the Debtors. AlixPartners
is the restructuring advisor and Marc A. Beilinson is the chief
restructuring officer. Moelis & Company is the financial advisor.
Omni Management Group, LLC, is the claims and notice agent.
Attorneys at Morrison & Foerster, LLP, represent the Official
Committee of Unsecured Creditors.
JC CANDLELIGHT: Case Summary & 8 Largest Unsecured Creditors
------------------------------------------------------------
Debtor: JC Candlelight Homes, LLC
dba Hanover Lifestyle Homes of Columbus
8888 Keystone Crossing, Suite 650
Indianapolis, IN 46240
Bankruptcy Case No.: 11-12699
Chapter 11 Petition Date: October 7, 2011
Court: United States Bankruptcy Court
Southern District of Indiana (Indianapolis)
Judge: Anthony J. Metz III
Debtor's Counsel: James S. Kowalik, Esq.
HOSTETLER AND KOWALIK, P.C.
101 W Ohio St., Suite 2100
Indianapolis, IN 46204
Tel: (317) 262-1001
Fax: (317) 262-1010
E-mail: jkowalik@hklawfirm.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 eight largest unsecured creditors filed
together with the petition is available for free at
http://bankrupt.com/misc/insb11-12699.pdf
The petition was signed by Ronald E. Farren, managing member.
Affiliate that filed separate Chapter 11 petition:
Petition
Debtor Case No. Date
------ -------- ----
Candlelight Properties, LLC 11-12698 10/07/11
J.C. EVANS: First State Wants $23.5MM Credit Bid for Assets
-----------------------------------------------------------
Secured creditor First State Bank Central Texas asks the U.S.
Bankruptcy Court for the Western District of Texas to:
-- approve its credit bid for JCE Delaware, Inc., et al's
quarry assets;
-- approve the Bank's right to credit bid up to the full
amount of its debt (as of Sept. 23, 2011, the principal amount
of the Bank's debt is $23,587,714 plus accruing fees and
expenses);
-- determine how the Bank's credit bid must be calculated for
bidding purposes vis-a-vis advances made by the DIP Lender per
the Court's Sept. 21, 2011, order authorizing postpetition
financing; and
-- permit the Bank to credit bid at the sale without having to
post a Good Faith Deposit.
The Bank has a first lien on most of the Debtors' assets
including, without limitation, real estate, owned equipment,
inventory, and accounts receivable on unbonded construction
projects and inventory sales (excluding accounts receivable
related to bonded construction projects upon which the Bank would
have a second lien behind the bonding company). Specifically,
with regard to the Debtors' motion for bid procedures and the
quarry assets the Debtors are selling, the Bank has a first lien
on: (1) approximately 500 acres in Williamson County; and (2)
approximately 75 acres in Williamson County. Furthermore, First
State Bank may have a first lien on certain equipment and stone
inventory that may be sold as part of the Quarry Assets.
As reported in the Troubled Company Reporter on Sept. 23, 2011,
the Debtors are asking permission to:
-- sell their significant asset, a 700-acre quarry, and certain
heavy equipment and stone inventory related thereto; and
-- to assign contracts and leases related to the quarry
operations pursuant to sections 363(b) and (f), and 365 of the
Bankruptcy Code, free and clear of liens, claims, and
encumbrances.
The Hon. Craig A. Gargotta will consider approval of First State's
request at a hearing scheduled for Oct. 20, 2011, at 10:00 a.m.
First State is represented by:
HALEY & OLSON, P.C.
Shad Robinson, Esq.
Blake Rasner, Esq.
510 North Valley Mills Drive, Suite 600
Waco, Texas 76710
Tel: (254) 776-3336
Fax: (254) 776-6823
E-mail: srobinson@haleyolson.com
brasner@haleyolson.com
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 (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. Tittle Advisory Group, Inc., will provide
financial advisory services. Butler Burgher Group LLC will
provide real estate appraisal services with regard to the
valuation of the Debtors' headquarters and warehouse properties,
consisting of 28 acres near Leander, Texas. In its petition, JC
Evans disclosed $51,543,030 in assets and $74,203,554 in
liabilities as of the Chapter 11 filing.
A creditors' committee has been appointed by the U.S. Trustee.
Neither a trustee nor an examiner has been requested or appointed
in the cases.
JCK HOTELS: Court Rejects LBUBS' Plea to Dismiss Chapter 11 Case
----------------------------------------------------------------
The Hon. Louise DeCarl Adler of the U.S. Bankruptcy Court the
Southern District of California denied the request to dismiss the
Chapter 11 case of JCK Hotels LLC filed by secured creditor LBUBS
2005-C2 Mira Mesa Limited Partnership because it does not have
standing to seek dismissal of the case on the ground that the
filing was not authorized by Debtor's LLC agreement; and Debtor
did not file the case in bad faith.
According to the Troubled Company Reporter on Sept. 13, 2011,
LBUBS said that pursuant to state law and the terms of the
Debtor's limited liability company operating agreement, the
manager lacked the authority to initiate the bankruptcy
proceeding. Additionally, the petition was filed in bad faith and
is therefore subject to dismissal, according to LBUBS.
Pueblo Bank is the backup bidder with a credit bid of $5 million.
About JCK Hotels, LLC
JCK Hotels, LLC, fka Mira Mesa Hotels, LLC, operates the Holiday
Inn Express Mira Mesa Hotel and the Comfort Suites Mira Mesa Hotel
in San Diego, California. The Hotels are operated under licensing
and franchise agreements with Holiday Inn Express and Comfort
Suites.
JCK Hotels filed for Chapter 11 bankruptcy (Bankr. S.D. Calif.
Case No. 11-09428) on June 3, 2011. Judge Louise DeCarl Adler
presides over the case. William M. Rathbone, Esq., and Daniel C.
Silva, Esq., at Gordon & Rees LLP, in San Diego, Calif., serve as
bankruptcy counsel. While no formal appraisal has been done
recently, the Debtor believes the fair market value of both Hotels
exceeds $18 million. The petition was signed by Charles Jung,
managing member.
JG WENTWORTH: S&P Assigns 'B' Counterparty Credit Rating
--------------------------------------------------------
Standard & Poor's Ratings Services assigned its 'B' long-term
counterparty credit rating on J.G. Wentworth LLC (Wentworth). The
outlook is stable. "We also assigned a 'B' rating on the $300
million senior secured notes due in 2013 issued by subsidiary
PeachHI LLC and guaranteed by Wentworth," S&P said.
"The rating on Wentworth reflects its monoline business, highly
leveraged balance sheet, and business model that relies on the
need to continuously replenish asset origination and access
refinancing," said Standard & Poor's credit analyst Thomas
Connell. "Wentworth's strong market position somewhat offsets
these risks."
Wentworth's primary activity is the purchase and refinancing of
structured settlement payment streams. A structured settlement is
a legally established stream of guaranteed periodic payments,
typically based on a compensation award for personal injury or
wrongful death. Wentworth negotiates agreements with individual
structured settlement recipients to purchase a settlement payment
stream for a lump sum of cash. Court order under state law
approves all settlement transfers, and settlement counterparties
are usually highly rated insurance companies.
The company's profitability is based on its ability to purchase
structured settlement payment streams at a value based on a
discount rate, which is typically a percentage in the low- to mid-
teens. Pools of settlement assets are then resold into a special
purpose vehicle (SPV) for securitization funding, with the
transaction based on a discount rate reflecting the securitization
funding costs (currently 5%-6%). The company's ongoing
profitability depends in part on continuing origination of
structured settlement purchases and the subsequent access to take-
out refinancing.
Wentworth has put in place new refinancing arrangements that
provide somewhat more diversity and flexibility than the
arrangements that led to difficulties in 2009. However, Standard &
Poor's believes funding market access remains a key risk for the
company.
Wentworth faces competitive pressure in the origination of new
assets in terms of both identifying prospective settlement sellers
and successfully closing transactions. New structured settlements
total an estimated $5 billion-$10 billion in the U.S. each year,
and the cumulative stock of past awards is a multiple of the new
awards established annually. However, recipients are highly
dispersed, and a small proportion may be interested in a lump-sum
buyout at any time. Wentworth maintains advertising campaigns to
attract potential settlement sellers, a small minority of whom
ends up closing transactions with Wentworth. Currently, the
company has a limited number of competitors, and it benefits from
competing under both the Wentworth and Peachtree brands. This does
not preclude pressure on margins now or in the future. Competition
could increase significantly if other well-established financial
industry players were to take an interest in this sector.
JOHN KEMPER: 2009 Bankruptcy Surfaces in Auditor Race
-----------------------------------------------------
The Associated Press reports that John T. Kemper III, the
Republican candidate for Kentucky's next auditor, talked openly
about filing for Chapter 11 bankruptcy protection in 2009.
Mr. Kemper said he had hoped to develop upscale homes on a tract
along the Fayette-Jessamine County line, but the plan went bust as
the economy and housing market tanked. AP says Mr. Kemper and his
wife are making regular payments on their debt. Mr. Kemper said
the taxpayers of Kentucky need an auditor who has "weathered the
storm and taken responsibility for the things that have happened."
AP relates that Democratic opponent Adam Edelen said it is a
stretch to go from declaring bankruptcy to becoming the chief
taxpayer watchdog.
The election is Nov. 8, 2011.
Based in Lexington, Kentucky, John T. Kemper, III, filed for
Chapter 11 bankruptcy protection (Bankr. E.D. Ky. Case No.
09-50838) on March 22, 2009, estimating $1 million to $10 million
in assets and debts. Dean A. Langdon, Esq., represents the
Debtor.
KINETIC CONCEPTS: S&P Assigns 'B' Sr. Secured Issue-Level Rating
----------------------------------------------------------------
Standard & Poor's Ratings Services assigned a 'B' senior secured
issue-level rating and '4' recovery rating on San Antonio, Texas-
based medical technology company Kinetic Concepts Inc.'s (KCI)
proposed $1.65 billion senior secured second-lien notes maturing
in 2019. "The '4' recovery rating reflects our expectation for
average (30% to 50%) recovery for second-lien senior secured
lenders in the event of a payment default. At the same time, we
assigned a 'CCC+' senior unsecured issue-level rating and '6'
recovery rating to KCI's proposed $900 million senior unsecured
notes maturing in 2019. The '6' recovery rating reflects our
expectation for negligible (0% to 10%) recovery for senior
unsecured lenders in the event of a payment default," S&P stated.
The 'BB-' issue-level rating and '1' recovery rating on the
company's previously rated proposed credit facility is unchanged
despite KCI's intention to reduce the term loan B to $2.2 billion
from its initial $2.6 billion proposal. The company will use the
proceeds from the debt offerings to fund the proposed leveraged
buyout (LBO) of KCI by private-equity firm Apax Partners L.P., the
Canada Pension Plan Investment Board, and the Public Sector
Pension Investment Board.
KCI's 'BB+' corporate credit rating is on CreditWatch with
negative implications. "We originally placed KCI's corporate
credit rating on CreditWatch Negative on July 8, 2011, following
reports that that the company may be subject to a takeover by a
private-equity firm. Following the completion of the proposed LBO
(likely before the end of 2011), we expect to remove our corporate
credit rating on KCI from CreditWatch and lower it to 'B' from
'BB+', reflecting increased debt leverage and low cash flow
relative to LBO-related debt. At the same time, we expect to
assign a stable outlook, reflecting the company's relatively
stable operating performance and cash flows throughout the recent
three-year global economic downturn. This should partly offset the
company's very high interest expense and capital expenditures,"
S&P related.
"We expect KCI's existing debt to be retired as part of the
proposed LBO; we will withdraw those ratings at that time," S&P
said.
Ratings List
Kinetic Concepts Inc.
Corporate Credit Rating BB+/Watch Neg/--
New Ratings
Kinetic Concepts Inc.
Senior Secured
$1.65 bil second-lien notes due 2019 B
Recovery Rating 4
Senior Unsecured
$900 mil senior unsecured note due 2019 CCC+
Recovery Rating 6
LA VILLITA: Judge King Disqualifies Oppenheimer as Counsel
----------------------------------------------------------
The Hon. Ronald B. King of the U.S. Bankruptcy Court for the
Western District of Texas disqualified Oppenheimer, Blend,
Harrison and Tate, Inc., as counsel of La Villita Motors Inns.,
J.V., at the behest of ORIX Capital Markets LLC as special
servicer for U.S. Bank National Association.
ORIX asserts a claim against the Debtor in the amount of not less
than $8,564,759 as of the Debtor's bankruptcy filing, and which
arises from that certain promissory note and related loan
documents executed by the Debtor in 1998 and affirmed by a
subsequent final state court judgment. ORIX said its claim is
secured by substantially all of the Debtor's assets.
ORIX told the Court that Oppenheimer Blend and Strasburger &
Price LLP merged, effective Oct. 1, 2011, and that the combined
firm will be known in San Antonio as Strasburger Price Oppenheimer
Blend.
Strasburger currently represents it in on-going litigation
currently before the Court of Appeals for the Fifth District of
Texas No. 05-09-00066-CV In the Strasburger Matter, Strasburger is
defending ORIX against claims, among others, that mirror some of
the legal issues raised by the Debtor in the Adversary Proceeding:
ORIX's standing as special servicer to enforce securitized loan
obligations, and its rights, powers, and conduct as special
servicer with respect to same.
Russell L. Munsch, Esq., at Munsch Hardt Kopf & Harr P.C., said,
upon receiving notice of the merger, counsel for ORIX advised
Oppenheimer Blend of this conflict, and that ORIX would not waive
such conflict resulting from the Merger. Counsel for ORIX
requested that Oppenheimer Blend withdraw from representing the
Debtor in view of the Merger. Oppenheimer Blend has refused to
withdraw, making this motion necessary.
About La Villita Motor Inns JV
San Antonio, Texas-based La Villita Motor Inns JV is a joint
venture, formed on or about April 14, 1980, that owns and operates
a hotel located at 100 La Villita in San Antonio, Texas, known as
the Riverwalk Plaza Hotel. It filed for Chapter 11 bankruptcy
protection (Bankr. Case No. 10-54864) on Dec. 17, 2010. Debra L.
Innocenti, Esq., at Oppenheimer Blend Harrison & Tate, serves as
the Debtor's bankruptcy counsel. The Debtor estimated assets at
$10 million to $50 million and debts at $1 million to $10 million.
LEHMAN BROTHERS: Proposes to Hire Krebsbach as Special Counsel
--------------------------------------------------------------
Lehman Brothers Holdings Inc. has filed an application to employ
Krebsbach & Snyder P.C. as special counsel effective July 1,
2011.
Krebsbach has served as one of the "ordinary course"
professionals of the company. Its fees and expenses, however,
might exceed the $1 million compensation cap for OCPs, prompting
LBHI to seek court approval to hire the firm as special counsel
pursuant to Sections 327 of the Bankruptcy Code.
Krebsbach will continue to provide legal services, which include
prosecuting claims to recover amounts due under promissory notes
executed by former Lehman employees.
As of September 27, 2011, Krebsbach has filed 58 arbitration
cases before the Financial Industry Regulatory Authority, of
which about 40 cases are still pending.
Krebsbach will be paid for its services on an hourly basis and
will be reimbursed for its expenses. The hourly rates of the
firm's professionals are:
Professionals Hourly Rates
------------- ------------
Partners $395
Counsels $325
Associates $205-$250
Senior Paralegal $135
Junior Paralegals $95
In a declaration, Theodore Krebsbach, Esq., a member of
Krebsbach, said that his firm does not hold or represent any
interest adverse to the estates.
Krebsbach & Snyder can be reached at:
One Exchange Plaza
55 Broadway, Suite 1600
New York, New York 1006
Tel: (212) 825-9811
Fax: (212) 825-9828
E-mail: tkrebsbach@krebsbach.com
About Lehman Brothers
Lehman Brothers Holdings Inc. -- http://www.lehman.com/-- was
the fourth largest investment bank in the United States. For
more than 150 years, Lehman Brothers has been a leader in the
global financial markets by serving the financial needs of
corporations, governmental units, institutional clients and
individuals worldwide.
Lehman Brothers filed for Chapter 11 bankruptcy Sept. 15, 2008
(Bankr. S.D.N.Y. Case No. 08-13555). Lehman's bankruptcy
petition disclosed US$639 billion in assets and US$613 billion in
debts, effectively making the firm's bankruptcy filing the
largest in U.S. history. Several other affiliates followed
thereafter.
Additional units, Merit LLC, LB Somerset LLC and LB Preferred
Somerset LLC, sought for bankruptcy protection in December 2009
or more than a year after LBHI and its other affiliates filed
their bankruptcy cases.
The Debtors' bankruptcy cases are handled by Judge James M. Peck.
Harvey R. Miller, Esq., Richard P. Krasnow, Esq., Lori R. Fife,
Esq., Shai Y. Waisman, Esq., and Jacqueline Marcus, Esq., at
Weil, Gotshal & Manges, LLP, in New York, represent Lehman. Epiq
Bankruptcy Solutions serves as claims and noticing agent.
Dennis F. Dunne, Esq., Evan Fleck, Esq., and Dennis O'Donnell,
Esq., at Milbank, Tweed, Hadley & McCloy LLP, in New York, serve
as counsel to the Official Committee of Unsecured Creditors.
Houlihan Lokey Howard & Zukin Capital, Inc., is the Committee's
investment banker.
On Sept. 19, 2008, the Honorable Gerard E. Lynch of the U.S.
District Court for the Southern District of New York, entered an
order commencing liquidation of Lehman Brothers, Inc., pursuant
to the provisions of the Securities Investor Protection Act (Case
No. 08-CIV-8119 (GEL)). James W. Giddens has been appointed as
trustee for the SIPA liquidation of the business of LBI.
The Bankruptcy Court has approved Barclays Bank Plc's purchase
of Lehman Brothers' North American investment banking and
capital markets operations and supporting infrastructure for
US$1.75 billion. Nomura Holdings Inc., the largest brokerage
house in Japan, purchased LBHI's operations in Europe for US$2
plus the retention of most of employees. Nomura also bought
Lehman's operations in the Asia Pacific for US$225 million.
International Operations Collapse
Lehman Brothers International (Europe), the principal UK trading
company in the Lehman group, was placed into administration,
together with Lehman Brothers Ltd, LB Holdings PLC and LB UK RE
Holdings Ltd. Tony Lomas, Steven Pearson, Dan Schwarzmann and
Mike Jervis, partners at PricewaterhouseCoopers LLP, have been
appointed as joint administrators to Lehman Brothers
International (Europe) on Sept. 15, 2008. The joint
administrators have been appointed to wind down the business.
Lehman Brothers Japan Inc. and Lehman Brothers Holdings Japan
Inc. filed for bankruptcy in the Tokyo District Court on
Sept. 16. Lehman Brothers Japan Inc. reported about JPY3.4
trillion (US$33 billion) in liabilities in its petition.
Judge James Peck on Aug. 30, 2011, approved the disclosure
statement, which outlines the major provisions of Lehman's
$65 billion liquidation plan. The proposed plan would enable LBHI
and its affiliated debtors to pay an estimated $65 billion to
their creditors. Voting on the Plan ends on Nov. 4, 2011. A
hearing to consider confirmation of the Plan is set for Dec. 6,
2011.
Bankruptcy Creditors' Service, Inc., publishes Lehman Brothers
Bankruptcy News. The newsletter tracks the Chapter 11 proceeding
undertaken by Lehman Brothers Holdings, Inc., and other
insolvency and bankruptcy proceedings undertaken by its
affiliates. (http://bankrupt.com/newsstand/or 215/945-7000)
LEHMAN BROTHERS: Discovery on Suit vs. JPM Ends Jan. 27
-------------------------------------------------------
Judge James Peck signed off the scheduling order, which sets a
timetable for the conduct of investigation and the filing of
court papers in connection with the lawsuit Lehman Brothers
Holdings Inc. lodged against JPMorgan Chase Bank N.A.
The scheduling order requires all fact discovery including
depositions to be completed by January 27, 2012.
A full- text copy of the order is available without charge
at http://bankrupt.com/misc/LBHI_JPM5thSO100411.pdf
JPMorgan Chase has asked the U.S. District Court for the Southern
District of New York to remove the lawsuit from bankruptcy court
even before Judge Peck decides whether the case should be handled
upstairs, Bloomberg News reported on Sept. 28.
Lehman and JPMorgan filed opposing papers on whether the
bankruptcy court can hear the case in view of the decision in the
Stern vs. Marshall case, the report related. Even if Stern means
the bankruptcy court can't make a final ruling, Lehman contends
that Judge Peck may hold a trial and give a recommended ruling to
a district judge who would review the record and make an
independent determination about who wins and who loses, Bloomberg
noted.
JPMorgan, by contrast, believes that Stern "prevents the
bankruptcy court from adjudicating any of the causes of action,"
the news agency said.
According to Bloomberg, Lehman doesn't concede that the Supreme
Court's Stern opinion ousts Judge Peck from the right to make a
final ruling. "Lehman argues that Stern still allows a
bankruptcy judge to rule on a lawsuit against a creditor so long
as passing on the creditors' claim would resolve all the issues
in the lawsuit. Lehman therefore argues in its papers that when
Judge Peck rules on JPMorgan's claim he will of necessity dispose
of all issues required for deciding on the lawsuit," the news
report said.
About Lehman Brothers
Lehman Brothers Holdings Inc. -- http://www.lehman.com/-- was
the fourth largest investment bank in the United States. For
more than 150 years, Lehman Brothers has been a leader in the
global financial markets by serving the financial needs of
corporations, governmental units, institutional clients and
individuals worldwide.
Lehman Brothers filed for Chapter 11 bankruptcy Sept. 15, 2008
(Bankr. S.D.N.Y. Case No. 08-13555). Lehman's bankruptcy
petition disclosed US$639 billion in assets and US$613 billion in
debts, effectively making the firm's bankruptcy filing the
largest in U.S. history. Several other affiliates followed
thereafter.
Additional units, Merit LLC, LB Somerset LLC and LB Preferred
Somerset LLC, sought for bankruptcy protection in December 2009
or more than a year after LBHI and its other affiliates filed
their bankruptcy cases.
The Debtors' bankruptcy cases are handled by Judge James M. Peck.
Harvey R. Miller, Esq., Richard P. Krasnow, Esq., Lori R. Fife,
Esq., Shai Y. Waisman, Esq., and Jacqueline Marcus, Esq., at
Weil, Gotshal & Manges, LLP, in New York, represent Lehman. Epiq
Bankruptcy Solutions serves as claims and noticing agent.
Dennis F. Dunne, Esq., Evan Fleck, Esq., and Dennis O'Donnell,
Esq., at Milbank, Tweed, Hadley & McCloy LLP, in New York, serve
as counsel to the Official Committee of Unsecured Creditors.
Houlihan Lokey Howard & Zukin Capital, Inc., is the Committee's
investment banker.
On Sept. 19, 2008, the Honorable Gerard E. Lynch of the U.S.
District Court for the Southern District of New York, entered an
order commencing liquidation of Lehman Brothers, Inc., pursuant
to the provisions of the Securities Investor Protection Act (Case
No. 08-CIV-8119 (GEL)). James W. Giddens has been appointed as
trustee for the SIPA liquidation of the business of LBI.
The Bankruptcy Court has approved Barclays Bank Plc's purchase
of Lehman Brothers' North American investment banking and
capital markets operations and supporting infrastructure for
US$1.75 billion. Nomura Holdings Inc., the largest brokerage
house in Japan, purchased LBHI's operations in Europe for US$2
plus the retention of most of employees. Nomura also bought
Lehman's operations in the Asia Pacific for US$225 million.
International Operations Collapse
Lehman Brothers International (Europe), the principal UK trading
company in the Lehman group, was placed into administration,
together with Lehman Brothers Ltd, LB Holdings PLC and LB UK RE
Holdings Ltd. Tony Lomas, Steven Pearson, Dan Schwarzmann and
Mike Jervis, partners at PricewaterhouseCoopers LLP, have been
appointed as joint administrators to Lehman Brothers
International (Europe) on Sept. 15, 2008. The joint
administrators have been appointed to wind down the business.
Lehman Brothers Japan Inc. and Lehman Brothers Holdings Japan
Inc. filed for bankruptcy in the Tokyo District Court on
Sept. 16. Lehman Brothers Japan Inc. reported about JPY3.4
trillion (US$33 billion) in liabilities in its petition.
Judge James Peck on Aug. 30, 2011, approved the disclosure
statement, which outlines the major provisions of Lehman's
$65 billion liquidation plan. The proposed plan would enable LBHI
and its affiliated debtors to pay an estimated $65 billion to
their creditors. Voting on the Plan ends on Nov. 4, 2011. A
hearing to consider confirmation of the Plan is set for Dec. 6,
2011.
Bankruptcy Creditors' Service, Inc., publishes Lehman Brothers
Bankruptcy News. The newsletter tracks the Chapter 11 proceeding
undertaken by Lehman Brothers Holdings, Inc., and other
insolvency and bankruptcy proceedings undertaken by its
affiliates. (http://bankrupt.com/newsstand/or 215/945-7000)
LEHMAN BROTHERS: LBI Trustee Opposes Lehman Europe's $8.9BB Claim
-----------------------------------------------------------------
The trustee of Lehman Brothers Holdings Inc.'s brokerage said the
so-called house claim filed by Lehman Brothers International
(Europe) must be denied since it is not a customer claim.
LBIE, the largest of LBHI's foreign affiliates, seeks to recover
$8.9 billion from the brokerage, saying the house claim is
entitled to a higher status as a customer claim.
The $8.9 billion claim is based upon transactions in U.S.
securities conducted through LBIE proprietary accounts that the
brokerage maintained while acting as the U.S. hub for the global
Lehman enterprise.
The trustee's lawyer, William Maguire, Esq., at Hughes Hubbard &
Reed LLP, in New York, said the house claim does not involve any
third-party customer property entrusted to the brokerage or
segregated for the benefit of third-party customers.
"LBIE's house claim, although asserted as a SIPA customer claim,
is asserted not for the benefit of any underlying customers but
for the benefit of LBIE itself," Mr. Maguire said in a court
filing.
While objecting the house claim, the trustee has allowed more
than $8.3 billion claim for LBIE's customers, one of the largest
allowed claims in the history of bankruptcy and so far the
largest claim allowed under SIPA.
LBIE's objection over whether its $8.9 billion claim can be
treated as a customer claim is considered the biggest hurdle for
the confirmation of Lehman's proposed Chapter 11 plan. In case
it would be treated as a customer claim, the house claim would
receive higher payback priority and would be more likely to be
repaid in full at the expense of other claims.
About Lehman Brothers
Lehman Brothers Holdings Inc. -- http://www.lehman.com/-- was
the fourth largest investment bank in the United States. For
more than 150 years, Lehman Brothers has been a leader in the
global financial markets by serving the financial needs of
corporations, governmental units, institutional clients and
individuals worldwide.
Lehman Brothers filed for Chapter 11 bankruptcy Sept. 15, 2008
(Bankr. S.D.N.Y. Case No. 08-13555). Lehman's bankruptcy
petition disclosed US$639 billion in assets and US$613 billion in
debts, effectively making the firm's bankruptcy filing the
largest in U.S. history. Several other affiliates followed
thereafter.
Additional units, Merit LLC, LB Somerset LLC and LB Preferred
Somerset LLC, sought for bankruptcy protection in December 2009
or more than a year after LBHI and its other affiliates filed
their bankruptcy cases.
The Debtors' bankruptcy cases are handled by Judge James M. Peck.
Harvey R. Miller, Esq., Richard P. Krasnow, Esq., Lori R. Fife,
Esq., Shai Y. Waisman, Esq., and Jacqueline Marcus, Esq., at
Weil, Gotshal & Manges, LLP, in New York, represent Lehman. Epiq
Bankruptcy Solutions serves as claims and noticing agent.
Dennis F. Dunne, Esq., Evan Fleck, Esq., and Dennis O'Donnell,
Esq., at Milbank, Tweed, Hadley & McCloy LLP, in New York, serve
as counsel to the Official Committee of Unsecured Creditors.
Houlihan Lokey Howard & Zukin Capital, Inc., is the Committee's
investment banker.
On Sept. 19, 2008, the Honorable Gerard E. Lynch of the U.S.
District Court for the Southern District of New York, entered an
order commencing liquidation of Lehman Brothers, Inc., pursuant
to the provisions of the Securities Investor Protection Act (Case
No. 08-CIV-8119 (GEL)). James W. Giddens has been appointed as
trustee for the SIPA liquidation of the business of LBI.
The Bankruptcy Court has approved Barclays Bank Plc's purchase
of Lehman Brothers' North American investment banking and
capital markets operations and supporting infrastructure for
US$1.75 billion. Nomura Holdings Inc., the largest brokerage
house in Japan, purchased LBHI's operations in Europe for US$2
plus the retention of most of employees. Nomura also bought
Lehman's operations in the Asia Pacific for US$225 million.
International Operations Collapse
Lehman Brothers International (Europe), the principal UK trading
company in the Lehman group, was placed into administration,
together with Lehman Brothers Ltd, LB Holdings PLC and LB UK RE
Holdings Ltd. Tony Lomas, Steven Pearson, Dan Schwarzmann and
Mike Jervis, partners at PricewaterhouseCoopers LLP, have been
appointed as joint administrators to Lehman Brothers
International (Europe) on Sept. 15, 2008. The joint
administrators have been appointed to wind down the business.
Lehman Brothers Japan Inc. and Lehman Brothers Holdings Japan
Inc. filed for bankruptcy in the Tokyo District Court on
Sept. 16. Lehman Brothers Japan Inc. reported about JPY3.4
trillion (US$33 billion) in liabilities in its petition.
Judge James Peck on Aug. 30, 2011, approved the disclosure
statement, which outlines the major provisions of Lehman's
$65 billion liquidation plan. The proposed plan would enable LBHI
and its affiliated debtors to pay an estimated $65 billion to
their creditors. Voting on the Plan ends on Nov. 4, 2011. A
hearing to consider confirmation of the Plan is set for Dec. 6,
2011.
Bankruptcy Creditors' Service, Inc., publishes Lehman Brothers
Bankruptcy News. The newsletter tracks the Chapter 11 proceeding
undertaken by Lehman Brothers Holdings, Inc., and other
insolvency and bankruptcy proceedings undertaken by its
affiliates. (http://bankrupt.com/newsstand/or 215/945-7000)
LEHMAN BROTHERS: Barclays and BofA to Sell Stakes in Archstone
--------------------------------------------------------------
Barclays Plc and Bank of America Corp. are planning to sell their
stakes in apartment giant Archstone, according to an October 3,
2011 report by The Wall Street Journal.
The move to sell came after the banks, which own 53% stake in
Archstone, failed to reach consensus with Lehman on a plan to
sell the entire company. Lehman has favored selling Archstone in
a public offering, Barclays has pushed for a private deal while
Bank of America has taken more of a middle-of-the-road position.
Barclays' and Bank of America's combined equity stakes are likely
worth between $2 billion and $3 billion, the report said, citing
people familiar with Archstone's finances as its source.
Lehman owns the rest of Archstone, a company that has full or
partial stakes in some 77,000 apartments, largely in major U.S.
cities.
The banks have had talks with Blackstone Group LP, Brookfield
Asset Management Inc., Equity Residential and AvalonBay
Communities Inc. and two others, whose identities could not be
determined, about buying their stakes, according to the report.
About five weeks ago, bids were received for all or parts of
Archstone from Brookfield, Blackstone, Equity Residential and
AvalonBay but they were not high enough to dissuade Lehman from
pressing for the public offering.
The amounts of the bids were not available but Archstone would
likely be worth between $16 billion and $18 billion if sold
today, The Journal reported.
About Lehman Brothers
Lehman Brothers Holdings Inc. -- http://www.lehman.com/-- was
the fourth largest investment bank in the United States. For
more than 150 years, Lehman Brothers has been a leader in the
global financial markets by serving the financial needs of
corporations, governmental units, institutional clients and
individuals worldwide.
Lehman Brothers filed for Chapter 11 bankruptcy Sept. 15, 2008
(Bankr. S.D.N.Y. Case No. 08-13555). Lehman's bankruptcy
petition disclosed US$639 billion in assets and US$613 billion in
debts, effectively making the firm's bankruptcy filing the
largest in U.S. history. Several other affiliates followed
thereafter.
Additional units, Merit LLC, LB Somerset LLC and LB Preferred
Somerset LLC, sought for bankruptcy protection in December 2009
or more than a year after LBHI and its other affiliates filed
their bankruptcy cases.
The Debtors' bankruptcy cases are handled by Judge James M. Peck.
Harvey R. Miller, Esq., Richard P. Krasnow, Esq., Lori R. Fife,
Esq., Shai Y. Waisman, Esq., and Jacqueline Marcus, Esq., at
Weil, Gotshal & Manges, LLP, in New York, represent Lehman. Epiq
Bankruptcy Solutions serves as claims and noticing agent.
Dennis F. Dunne, Esq., Evan Fleck, Esq., and Dennis O'Donnell,
Esq., at Milbank, Tweed, Hadley & McCloy LLP, in New York, serve
as counsel to the Official Committee of Unsecured Creditors.
Houlihan Lokey Howard & Zukin Capital, Inc., is the Committee's
investment banker.
On Sept. 19, 2008, the Honorable Gerard E. Lynch of the U.S.
District Court for the Southern District of New York, entered an
order commencing liquidation of Lehman Brothers, Inc., pursuant
to the provisions of the Securities Investor Protection Act (Case
No. 08-CIV-8119 (GEL)). James W. Giddens has been appointed as
trustee for the SIPA liquidation of the business of LBI.
The Bankruptcy Court has approved Barclays Bank Plc's purchase
of Lehman Brothers' North American investment banking and
capital markets operations and supporting infrastructure for
US$1.75 billion. Nomura Holdings Inc., the largest brokerage
house in Japan, purchased LBHI's operations in Europe for US$2
plus the retention of most of employees. Nomura also bought
Lehman's operations in the Asia Pacific for US$225 million.
International Operations Collapse
Lehman Brothers International (Europe), the principal UK trading
company in the Lehman group, was placed into administration,
together with Lehman Brothers Ltd, LB Holdings PLC and LB UK RE
Holdings Ltd. Tony Lomas, Steven Pearson, Dan Schwarzmann and
Mike Jervis, partners at PricewaterhouseCoopers LLP, have been
appointed as joint administrators to Lehman Brothers
International (Europe) on Sept. 15, 2008. The joint
administrators have been appointed to wind down the business.
Lehman Brothers Japan Inc. and Lehman Brothers Holdings Japan
Inc. filed for bankruptcy in the Tokyo District Court on
Sept. 16. Lehman Brothers Japan Inc. reported about JPY3.4
trillion (US$33 billion) in liabilities in its petition.
Judge James Peck on Aug. 30, 2011, approved the disclosure
statement, which outlines the major provisions of Lehman's
$65 billion liquidation plan. The proposed plan would enable LBHI
and its affiliated debtors to pay an estimated $65 billion to
their creditors. Voting on the Plan ends on Nov. 4, 2011. A
hearing to consider confirmation of the Plan is set for Dec. 6,
2011.
Bankruptcy Creditors' Service, Inc., publishes Lehman Brothers
Bankruptcy News. The newsletter tracks the Chapter 11 proceeding
undertaken by Lehman Brothers Holdings, Inc., and other
insolvency and bankruptcy proceedings undertaken by its
affiliates. (http://bankrupt.com/newsstand/or 215/945-7000)
LEHMAN BROTHERS: Mazzolin State Law Claims vs. Unit Moved to NY
---------------------------------------------------------------
Judge Rebecca R. Pallmeyer of the U.S. District Court for the
Northern District of Illinois, Eastern Division, granted the
motion filed by Amalia Mazzolin, trustee of the Amalia Mazzolin
1998 Trust B and The Mazzolin Family Limited Partnership, to move
its lawsuit to the U.S. District Court for the Southern District
Court of New York.
Mazzolin purchased partnership interests in what it understood
were portfolios of promising real estate holdings. In this
lawsuit, filed in the Circuit Court of Cook County, they claim
that Lehman Brothers Real Estate Fund III, L.P., made false
statements concerning the properties. Mazzolin asserts state law
claims for rescission and for violation of the Illinois Consumer
Fraud and Deceptive Business Practices Act.
LBREF removed the case to the District Court pursuant to the
court's bankruptcy jurisdiction under Sections 1452(a) and
1334(b) of the Judiciary and Judicial Procedures Code, which
grant district courts jurisdiction over "all civil proceedings
arising under [the federal Bankruptcy Code], or arising in or
related to cases under [the Bankruptcy Code]." LBREF claim that
removal was proper and the District Court has jurisdiction over
Mazzolin's lawsuit because it is "related to" the Chapter 11
bankruptcy of Lehman Brothers Holdings Inc. Citing a forum
selection clause within the partnership agreement and similar
litigation pending in the United States District Court for the
Southern District of New York, Mazzolin moved to transfer venue
to the New York court. LBREF have moved for an order remanding
the case to state court, contending that Mazzolin has failed to
establish how its suit is "related to" LBH's bankruptcy case.
In ruling for Mazzolin, Judge Pallmeyer found that LBREF has not
established federal jurisdiction over the dispute, based on
standards set by cases decided by different courts. Judge
Pallmeyer pointed out that LBH, the debtor, is not a party to the
lawsuit and nonce of the parties in the litigation are creditors
of LBH, nor is it apparent from the evidence how the litigation
stands to tangibly affect the property in LBH's estate. The
Court noted that LBREF is an independent legal entity that has
not filed for bankruptcy.
The Court rejected LBREF's argument that the case should be moved
because LBH has a "substantial economic stake" in LBREF and held
that the Court's bankruptcy jurisdiction would be nearly
unlimited if a debtor could force into bankruptcy any claim
against a non-debtor in whom the debtor has an investment
interest.
The Court also rejected LBREF's argument that it is covered by an
insurance policy owned by LBH, pointing out that LBREF has
neither provided details about the terms or conditions of any
insurance coverage owned by LBH nor furnished a copy of the
policy.
Though Mazzolin's petition is granted, Judge Pallmeyer stayed the
order to allow LBREF to show cause why the case should not be
remanded.
A full-text copy of Judge Pallmeyer's Decision dated Sept. 23,
2011, is available for free at http://is.gd/QyYl3xfrom
Leagle.com
About Lehman Brothers
Lehman Brothers Holdings Inc. -- http://www.lehman.com/-- was
the fourth largest investment bank in the United States. For
more than 150 years, Lehman Brothers has been a leader in the
global financial markets by serving the financial needs of
corporations, governmental units, institutional clients and
individuals worldwide.
Lehman Brothers filed for Chapter 11 bankruptcy Sept. 15, 2008
(Bankr. S.D.N.Y. Case No. 08-13555). Lehman's bankruptcy
petition disclosed US$639 billion in assets and US$613 billion in
debts, effectively making the firm's bankruptcy filing the
largest in U.S. history. Several other affiliates followed
thereafter.
Additional units, Merit LLC, LB Somerset LLC and LB Preferred
Somerset LLC, sought for bankruptcy protection in December 2009
or more than a year after LBHI and its other affiliates filed
their bankruptcy cases.
The Debtors' bankruptcy cases are handled by Judge James M. Peck.
Harvey R. Miller, Esq., Richard P. Krasnow, Esq., Lori R. Fife,
Esq., Shai Y. Waisman, Esq., and Jacqueline Marcus, Esq., at
Weil, Gotshal & Manges, LLP, in New York, represent Lehman. Epiq
Bankruptcy Solutions serves as claims and noticing agent.
Dennis F. Dunne, Esq., Evan Fleck, Esq., and Dennis O'Donnell,
Esq., at Milbank, Tweed, Hadley & McCloy LLP, in New York, serve
as counsel to the Official Committee of Unsecured Creditors.
Houlihan Lokey Howard & Zukin Capital, Inc., is the Committee's
investment banker.
On Sept. 19, 2008, the Honorable Gerard E. Lynch of the U.S.
District Court for the Southern District of New York, entered an
order commencing liquidation of Lehman Brothers, Inc., pursuant
to the provisions of the Securities Investor Protection Act (Case
No. 08-CIV-8119 (GEL)). James W. Giddens has been appointed as
trustee for the SIPA liquidation of the business of LBI.
The Bankruptcy Court has approved Barclays Bank Plc's purchase
of Lehman Brothers' North American investment banking and
capital markets operations and supporting infrastructure for
US$1.75 billion. Nomura Holdings Inc., the largest brokerage
house in Japan, purchased LBHI's operations in Europe for US$2
plus the retention of most of employees. Nomura also bought
Lehman's operations in the Asia Pacific for US$225 million.
International Operations Collapse
Lehman Brothers International (Europe), the principal UK trading
company in the Lehman group, was placed into administration,
together with Lehman Brothers Ltd, LB Holdings PLC and LB UK RE
Holdings Ltd. Tony Lomas, Steven Pearson, Dan Schwarzmann and
Mike Jervis, partners at PricewaterhouseCoopers LLP, have been
appointed as joint administrators to Lehman Brothers
International (Europe) on Sept. 15, 2008. The joint
administrators have been appointed to wind down the business.
Lehman Brothers Japan Inc. and Lehman Brothers Holdings Japan
Inc. filed for bankruptcy in the Tokyo District Court on
Sept. 16. Lehman Brothers Japan Inc. reported about JPY3.4
trillion (US$33 billion) in liabilities in its petition.
Judge James Peck on Aug. 30, 2011, approved the disclosure
statement, which outlines the major provisions of Lehman's
$65 billion liquidation plan. The proposed plan would enable LBHI
and its affiliated debtors to pay an estimated $65 billion to
their creditors. Voting on the Plan ends on Nov. 4, 2011. A
hearing to consider confirmation of the Plan is set for Dec. 6,
2011.
Bankruptcy Creditors' Service, Inc., publishes Lehman Brothers
Bankruptcy News. The newsletter tracks the Chapter 11 proceeding
undertaken by Lehman Brothers Holdings, Inc., and other
insolvency and bankruptcy proceedings undertaken by its
affiliates. (http://bankrupt.com/newsstand/or 215/945-7000)
LIONCREST TOWERS: Cash Collateral Hearing Continued Until Oct. 25
-----------------------------------------------------------------
The U.S. Bankruptcy Court for the Northern District of Illinois
has continued until Oct. 25, 2011, at 10:30 a.m., the hearing to
consider Lioncrest Towers LLC's request to use the cash collateral
of Wells Fargo Bank to fund the Debtor's Chapter 11 case, pay
suppliers and other parties.
As reported in the Troubled Company Reporter on Nov. 23, 2010,
Wells Fargo, asserts a senior mortgage lien and against the
Debtor's residential apartment project in Richton Park, Illinois,
known as Park Towers, pursuant to a senior mortgage indebtedness
of $29.50 million. Wells Fargo also asserted a security interest
in and lien upon, among other things, the rents being generated at
the property.
As adequate protection for any diminution in value of the lenders'
collateral, the Debtor will grant Wells Fargo a valid, perfected,
enforceable and non-avoidable first priority interest in and lien
and mortgage upon all of the Debtor's assets. The Debtor will also
provide the Wells Fargo any reports or other information
concerning any sale or proposed sale of the Debtor's assets, well
as other financial and other information concerning the business,
financial affairs of the Debtor and the operation of the
collateral. On the 15th day of each month, the Debtor will
provide the Wells Fargo an operating statement and a weekly cash
flow report.
About Lioncrest Towers, LLC
Lioncrest Towers, LLC, owns and operates a residential apartment
project in Richton Park, Illinois, known as Park Towers. It filed
for Chapter 11 bankruptcy protection (Bankr. N.D. Ill. Case No.
10-36805) on Aug. 17, 2010. Richard H. Fimoff, Esq., at Robbins,
Salomon & Patt, Ltd., in Chicago, assists the Debtor in its
restructuring effort. The Debtor estimated assets and debts at
$10 million to $50 million.
M&M STONE: Files Schedules of Assets and Liabilities
----------------------------------------------------
M&M Stone Co. filed with the Bankruptcy Court for the Eastern
District of Pennsylvania its schedules of assets and liabilities,
disclosing:
Name of Schedule Assets Liabilities
---------------- ----------- -----------
A. Real Property $2,250,000
B. Personal Property $16,727,748
C. Property Claimed as
Exempt
D. Creditors Holding
Secured Claims $6,291,507
E. Creditors Holding
Unsecured Priority
Claims $13,000
F. Creditors Holding
Unsecured Non-priority
Claims $2,683,081
----------- ------------
TOTAL $18,977,748 $8,987,589
Telford, Pennsylvania-based M&M Stone Co. filed for Chapter 11
bankruptcy (Bankr. E.D. Pa. Case No. 11-17266) on Sept. 18, 2011.
Judge Eric L. Frank presides over the case. Gregory R. Noonan,
Esq., at Walfish & Noonan, LLC, serves as counsel to the Debtor.
The petition was signed by Brian L. Carpenter, president.
Affiliate Drum Construction Company, Inc. (Bankr. E.D. Pa. Case
No. 11-14857) filed for Chapter 11 on June 17, 2011.
M&M STONE: Meeting to Form Creditors Committee on Oct. 17
---------------------------------------------------------
Roberta DeAngelis, United States Trustee for Region 3, will hold
an organizational meeting on Oct. 17, 2011, at 1:00 p.m. in the
bankruptcy case of M&M Stone Co. The meeting will be held at:
Office of the United States Trustee
833 Chestnut Street, Suite 501
Philadelphia, PA 19107
The sole purpose of the meeting will be to form a committee or
committees of unsecured creditors in the Debtors' cases.
The organizational meeting is not the meeting of creditors
pursuant to Section 341 of the Bankruptcy Code. A representative
of the Debtor, however, may attend the Organizational Meeting, and
provide background information regarding the bankruptcy cases.
To increase participation in the Chapter 11 proceeding, Section
1102 of the Bankruptcy Code requires that the United States
Trustee appoint a committee of unsecured creditors as soon as
practicable. The Committee ordinarily consists of the persons,
willing to serve, that hold the seven largest unsecured claims
against the debtor of the kinds represented on the committee.
Section 1103 of the Bankruptcy Code provides that the Committee
may consult with the debtor, investigate the debtor and its
business operations and participate in the formulation of a plan
of reorganization. The Committee may also perform other services
as are in the interests of the unsecured creditors whom it
represents.
M&M Stone Co. filed a Chapter 11 petition (Bankr. D.P. Case No.
11-17266) on Sept. 18, 2011 in Philadelphia, Pennsylvania, Gregory
R. Noonan, Esq., at Walfish & Noonan, LLC in Philadelphia serves
as counsel to the Debtor.
M WAIKIKI: Court Approves Klevansky Piper as General Counsel
------------------------------------------------------------
The U.S. Bankruptcy Court for the District of Hawaii authorized M
Waikiki LLC to employ Klevansky Piper LLP as its general counsel
in the Chapter 11 case.
As general counsel, Klevansky Piper will:
(a) advise M Waikiki, its management, officers, and directors
of its rights, powers, and duties as a debtor-in-
possession;
(b) counsel M Waikiki' s management, officers, and directors
on issues involving operations, potential sales of assets,
and possible financing options as well as negotiate
documents, prepare pleadings, and represent M Waikiki at
hearings related to those matters;
(c) take all necessary actions to protect and preserve M
Waikiki's estate, including prosecuting litigation M
Waikiki's behalf, investigating claims of M Waikiki,
defending M Waikiki, if necessary, in any actions,
litigations, hearings or motions commenced against M
Waikiki, negotiating disputes in which M Waikiki is
involved, and preparing objections to claims filed
against the estate;
(d) prepare on behalf of M Waikiki all necessary motions,
applications, answers, pleadings, orders, reports, and
papers in connection with the administration of the estate
or in furtherance of M Waikiki' s business operations, or
as required to preserve M Waikiki's assets, and as
otherwise requested by M Waikiki's management;
(e) negotiate and draft documents relating to debtor-in-
possession financing and/or use of cash collateral as well
as attend any hearings on such matters, prepare discovery
and respond to discovery served on M Waikiki, respond to
creditor inquiries and information requests, assist with
preparation of Schedules, Statement of Affairs, Monthly
Operating Reports, attendance at the 341 meeting and
representation at meetings with creditors as well as any
committee appointed by the United States Trustee;
(f) draft, negotiate, and prosecute on behalf of M Waikiki a
plan or plans of reorganization, the related disclosure
statement(s), and any revisions, amendments, and
supplements relating to the foregoing documents, and all
related materials;
(g) perform all other necessary legal services in connection
with this Chapter 11 case and any other bankruptcy-related
representation that M Waikiki requires; and
(h) handle all litigation, discovery, and other matters for M
Waikiki arising in connection with the Chapter 11 case.
The firm will be paid based on its customary hourly rates:
Partners $290 - $390
Paralegals and Associates $100 - $180
Prior to the filing of the petition, Klevansky Piper received a
deposit of $100,000 from M Waikiki -- through Neligan Foley, LLP -
- to represent M Waikiki in the Chapter 11 proceeding. These
funds are being held by Klevansky Piper as a retainer to be
applied to postpetition fees and expenses as approved by the
Court. The Retainer will be applied to fees and expenses that are
incurred in the course of M Waikiki's bankruptcy proceedings
and approved by the Court in connection with M Waikiki's
bankruptcy proceeding. If, at the conclusion of the case,
Klevansky Piper's fees and expenses ultimately are approved in an
aggregate amount less than the amount of the Retainer, Klevansky
Piper will return any remaining portion of the Retainer.
Simon Klevansky, a partner at the firm assured the Court that
Klevansky Piper represents no interests adverse to M Waikiki and
that his firm is a "disinterested person," as defined in
Section 101(14) of the Bankruptcy Code.
About M Waikiki
M Waikiki owns the Modern Honolulu, a world-class, luxury hotel
property located close to Waikiki Beach in Hawaii. The hotel is
being managed by Modern Management Services LLC, an affiliate of
Aqua Hotels and Resorts.
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 Hotel.
The Company filed for Chapter 11 protection (Bankr. D. Hawaii Case
No. 11-02371) on Aug. 31, 2011. Judge Robert J. Faris presides
over the case. The Debtor estimated $100 million to $500 million
in both assets and debts.
Modern Management is represented by Christopher J. Muzzi, Esq., at
Moseley Biehl Tsugawa Lau & Muzzi LLC.
Marriott Hotel Services, which used to provide management
services, is represented by Susan Tius, Esq., at Rush Moore LLP
LLP, and Carren B. Shulman, Esq., at Sheppard Mullin Richter &
Hampton LLP.
The Official Committee of Unsecured Creditors retained Wagner Choi
& Verbrugge as its counsel.
MAJESTIC CAPITAL: Board Aims to Proceed With Litigation
-------------------------------------------------------
Dow Jones' DBR Small Cap reports that the New York State Workers'
Compensation Board wants a judge to lift the legal shield
protecting Majestic Capital Ltd. from a $472 million lawsuit.
About Majestic Capital
Headquartered in Poughkeepsie, New York City, Majestic Capital,
Ltd., fdba CRM Holdings, Inc., filed for Chapter 11 protection
(Bankr. S.D.N.Y. Case No. 11-36225) on April 29, 2011.
Affiliates also sought Chapter 11 protection (Bankr. S.D.N.Y. Case
Nos. 11-36221 - 11-36234) on April 29, 2011. Bankruptcy Judge
Cecelia G. Morris presides over the case. Thomas Genova, Esq., at
Genova & Malin, Attorneys represents the Debtors in their
restructuring effort. Murphy & King, P.C. serves as the Debtors'
co-counsel. The Debtors tapped Michelman & Robinson, LLP, as
special counsel, and Day Seckler, LLP, as accountants and
financial advisors. The Debtor disclosed $436,191,000 in assets
and $421,757,000 in liabilities as of Dec. 31, 2010.
Bruce F. Smith, Esq., and Steven C. Reingold, Esq., at Jager Smith
P.C., represent the Official Committee of Unsecured Creditors.
The Committee has also tapped J.H. Cohn LLP as its financial
advisors.
MAQ MANAGEMENT: Files Liquidation Plans for Super Stop Units
------------------------------------------------------------
MAQ Management, Inc., and its debtor affiliates filed with the
U.S. Bankruptcy Court for the Southern District of Florida, West
Palm Beach Division, separate plans of liquidation for Super Stop
Petroleum I, Inc., and Super Stop Petroleum IV, Inc.
Super Stop Petroleum I Plan
Super Stop Petroleum I will offer its property for sale by way of
an auction. In conjunction with the Auction, the Debtor may enter
into a Purchase and Sale Agreement with Stalking Horse Bidder on
terms and conditions that are reasonable in form and substance.
The Debtor will submit the Purchase and Sale Agreement executed by
the winning bidder to the Bankruptcy Court for approval pursuant
to Sections 363(b) and 363(f) of the Bankruptcy Code. The hearing
to approve the Purchase and Sale Agreement may take place before,
or be combined with, the Confirmation Hearing.
The closing of the transactions required and contemplated by the
Purchase and Sale Agreement and the Plan will take place at a
location in Miami-Dade County, Broward County, or Palm Beach
County, Florida. The Effective Date will be the Closing Date,
unless the Closing Date occurs prior to entry of the Confirmation
Order, in which event, the Effective Date will be two business
days after entry the Confirmation Date, unless a later date is
requested by the Debtor and granted by the Court.
All claims filed against Super Stop Petroleum I are impaired,
except for administrative claims. Class 1 Secured Claim of BB&T
in the amount of $325,000 will be paid from the net proceeds
realized from a sale. Class 2 Unsecured Claims will receive their
pro rata distribution of the balance of the Net Proceedings.
Class 3 Interests in Debtor will receive no distribution under the
Plan and will retain no property whatsoever under the Plan.
A full-text copy of the Super Stop Petroleum I Plan, dated
Sept. 13, is available for free at:
http://ResearchArchives.com/t/s?7722
Super Stop Petroleum IV Plan
Mahammad Qureshi, or an entity or entities owned or controlled by
him, will cause the transfer of the first tranche of funds to be
used to maximize the value of Super Stop Petroleum IV's property.
The Development Funds will total $600,000.
The first tranche of the Development Funds totaling $100,000 will
be transferred to the Debtor on or after the Effective Date. On
or before six months after the Effective Date, Mahammad Qureshi
will transfer the second tranche of the Development Funds totaling
$500,000 to the Debtor.
If the Property reaches a certain stage of development, its value
to an independent arms-length purchaser will increase by
approximately $7,000,000. To realize this potential for the
benefit of Debtor's creditors, Debtor will advance the Development
Plan. Upon receipt of the first tranche Development Funds and the
entry of the Confirmation Order, the Post-Confirmation Debtor will
effectuate the Development Plan which include, among other things:
(i) finalization the annexation of a portion of the Property
into the City of Orlando;
(ii) acquiring final approval of appropriate zoning from the
proper land planning board;
(iii) acquiring final approval of the plan of development for
the Property; and upon the receipt of the second tranche
of the Development funds
(iv) completion of the already permitted wetlands reclamation.
The Development Plan will take no longer than 18 months to
complete.
Upon completion of the Development Plan, the Debtor will offer the
Property for Sale by way of an open and transparent Sale Process
conducted on terms and conditions that are reasonable in form and
substance with or without the aid of a Broker. In conjunction
with the Sale Process, the Debtor may enter into a Purchase and
Sale Agreement with Stalking Horse Bidder. The Debtor will submit
the Purchase and Sale Agreement executed by the highest bidder to
the Bankruptcy Court for approval pursuant to Sections 363(b) and
363(f) of the Bankruptcy Code. Upon the completion of an Sale
Process, approval of the Court, and payment to BB&T in
satisfaction of the Replacement Promissory Note and on account of
BB&T's Unsecured Class 2.3 Claim, BB&T will be deemed to waive any
and all Claims against the Debtor including, without limitation,
any unsecured deficiency Claim. Additionally, at the Closing of
the sale of the Property, the Debtor will convey and transfer to
Purchaser, the Property, free and clear of all Encumbrances, by
signing and delivering to Purchaser those deeds, bills of sale,
assignments and other conveyance documents as Purchaser reasonably
requests. At Closing in BB&T will deliver to Purchaser an
executed satisfaction of the mortgage and any and all other loan
documents encumbering the Property.
Further, BB&T will execute any and all other documents that BB&T
has the authority to execute to allow Purchaser to accept the
conveyance of title to the Property free and clear of all
Encumbrances.
The closing of the transactions required to effectuate the
transfer of the Development Funds pursuant to the Plan will take
place at a location in Miami-Dade County, Broward County, or Palm
Beach County, in Florida. The Effective Date will be the earlier
of 30 days after the Confirmation Date or the date the Post-
Confirmation Debtor receives the first tranche of the Development
Funds.
All claims against the Debtor are impaired, except for
administrative claims. Class 1 Secured Claim of BB&T will be
deemed to have an allowed secured claim in the amount of
$1,000,000 secured by the Property. Class 2.1 Unsecured Super
Priority Claims will be completely and fully satisfied in full in
exchange for a Cash payment equal to the amount of Development
Funds contributed by any claimant, plus interest accruing at 10%
commencing on the Effective Date. Class 2.2 Unsecured
Administrative Convenience Claims will be satisfied in full in
exchange for Cash in an amount equal to the greater of 80% of the
amount of the Allowed Convenience Class Claim or $2,000. Each
holder of an Allowed Class 2.3 General Unsecured Claim will
receive its pro rata distribution of the Net Proceeds remaining
after payment of all Allowed Secured Claims, Allowed Unsecured
Super Priority Claims and Allowed Administrative Claims. Class 3
Interests in Debtor will receive a pro rata distribution of the
Net Proceeds remaining after payment of all allowed claims.
A full-text copy of Super Stop Petroleum IV's Plan, dated
Sept. 13, is available for free at:
http://ResearchArchives.com/t/s?7723
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.
MEDIMPACT HOLDINGS: Moody's Cuts Corp. Family Rating to 'Caa2'
--------------------------------------------------------------
Moody's Investors Service downgraded the Corporate Family Rating
of MedImpact Holdings, Inc., the borrowing entity for MedImpact
Healthcare Systems, Inc. to Caa2 from B3. The company's
Probability of Default Rating was lowered to Caa1 from B3. At the
same time, Moody's downgraded the company's senior secured notes
to Caa3 from Caa2 and changed the company's Speculative Grade
Liquidity Rating to SGL-3 from SGL-2. The rating outlook is
stable.
RATINGS RATIONALE
The downgrades to a Caa2 CFR and Caa1 PDR are based on concerns
that MedImpact will not meet Moody's expectations for
profitability or cash flow generation over the next 12 to 18
months. The Caa2 CFR reflects a higher likelihood, in Moody's
view, that MedImpact's capital structure is unsustainable and the
company could face potential liquidity challenges. The Caa2 also
reflects MedImpact's high leverage, small revenue base, and
historical lack of financial controls stemming from a highly
concentrated ownership structure. Moody's understands that delays
in client implementations and higher than expected working capital
needs have contributed to negative cash flow from operations and
significantly lower cash balances during 2011.
"MedImpact's EBITDA and cash flow are expected to track well below
our expectations, even as sales from new clients begin to flow
through," said Diana Lee, a Senior Credit Officer at Moody's.
"Moody's believes that MedImpact's ability to adjust to any
potential changes in vendor payment terms will be even more
limited with reduced profitability, cash flow and cash balances,"
continued Lee. Going forward, Moody's believes the company will
continue to face challenges in improving profitability due to its
higher interest expense.
The ratings also reflect MedImpact's position as a niche pharmacy
benefit manager (PBM) that serves mid-sized customers, including
hospital systems, regional managed care organizations and state
Medicaid health plans. Because MedImpact acts solely as an agent
and does not purchase drugs or own mail order fulfillment or
specialty services, its revenue base is very small compared to the
three rated, full-service PBMs: CVS/Caremark (Baa2), Express
Scripts (Baa3) and Medco (Baa3).
The stable outlook reflects Moody's expectation that the company
will not see further deterioration in cash flow or liquidity,
which would require a draw down on its external credit facility.
If there is further deterioration in operating results (associated
with delays in client implementation, contract renewals or loss of
members) the ratings could be downgraded. A need to borrow to
address payable needs and weakened liquidity could also result in
a rating downgrade.
If MedImpact realizes improved sales and profitability so that
Moody's expects deleveraging to occur (and debt/EBITDA is below
5.0 times), the ratings could be upgraded. In addition, Moody's
would need to see positive working capital and operating cash flow
sustained. This further assumes that management demonstrates a
commitment to more conservative financial practices.
The company's SGL-3 reflects its adequate liquidity profile,
characterized by quarterly cash flow variability due to working
capital swings, limited - albeit improving - cash flow generation
that may require draws on MedImpact's modest sized ABL revolver.
Moody's expects maintenance of sufficient covenant cushions
assuming the majority of the revolver remains undrawn. While the
ABL is backed by allowable receivables, other assets - including
real estate and those related to aviation - secure notes payable
and therefore are not available as an alternate liquidity source.
Ratings downgraded
MedImpact Holdings, Inc.
Corporate Family Rating to Caa2 from B3
PDR to Caa1 from B3
Senior secured notes to Caa3 LGD6, 93% from Caa2 LGD5, 89%
The senior secured notes are secured by equity, providing limited
protection for bondholders. In addition, the presence of sizeable
trade payables and a $20 million ABL revolver at the operating
company (MedImpact, Inc.), and notes payable at various restricted
subsidiaries, which are secured by real estate and aviation
related assets, result in the senior notes being rated one notch
below the CFR. The PDR has been notched higher than the CFR
reflecting Moody's belief that recovery values may be below
average recovery levels of 50% because of weaker operating
performance.
MedImpact Healthcare Systems, Inc.'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
MedImpact Healthcare Systems, Inc.'s core industry and believes
MedImpact Healthcare Systems, Inc.'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 (and/or) the Government-Related Issuers
methodology published in July 2010.
MedImpact Healthcare Systems, Inc., a wholly-owned operating
subsidiary of MedImpact Holdings, Inc., is a Pharmacy Benefit
Management (PBM) company headquartered in San Diego, California.
MERIT GROUP: Disclosure Statement Hearing Set for Nov. 1
--------------------------------------------------------
TMG Liquidation Company and its debtor affiliates filed with the
U.S. Bankruptcy Court for the District of South Carolina an
amended Chapter 11 plan of liquidation and accompanying disclosure
statement. The Plan is co-proposed by the Official Committee of
Unsecured Creditors.
The hearing to consider the approval of the Disclosure Statement
will be held on Nov. 1, 2011, at 1:30 p.m. Objections to the
approval of the Disclosure Statement are due Oct. 27.
Through the Plan, the Debtors seek to liquidate their remaining
assets and complete the wind-up of their business. The Plan
provides for the appointment of the Plan Administrator, who will
manage the liquidation of the Debtors' assets and wind-up of the
business.
Proceeds from the sale of substantially all of the Debtors' assets
to MG Distribution, LLC, and proceeds from prosecution of certain
causes of action are the sources of funding for distributions
under the Plan. As a result of the sale and the settlement with
Regions Bank, the Debtors' estates received settlement payments
totaling $5.75 million.
Under the Plan, holders of Priority Tax Claims and Non-Tax
Priority Claims will be paid in full. Holders of Secured Claims
will be paid in full or receive the collateral securing their
claim. Holders of Convenience Claims will receive 10% of the
amount of such holder's Allowed Convenience Claim.
Under the Plan, holders of Allowed Senior Unsecured Claims
(Excluding Convenience Claims) will receive pro rata distributions
of the proceeds from the Sale after payment of or reserve for
Administrative Claims, Priority Tax Claims, Non-Tax Priority
Claims, Secured Claims, Convenience Claims, and Plan Expenses.
Pursuant to the Regions Bank Settlement, Regions Bank is not
entitled to receive any further distribution after Closing as a
holder of an Administrative Claim or Secured Claim but, instead,
will share in the Plan distributions with other general, non-
priority unsecured claims. Under the Plan and Regions Bank
Settlement, Regions Bank will receive an initial distribution (on
account of the Allowed Regions Deficiency Claim and the aggregate
claims of the Subordinated Creditors-i.e., Stonehenge Opportunity
Fund II, L.P., E. Fort Wolfe, Jr., Caleb C. Fort and Valspar
Corporation) only after Distributions aggregating 10% of the
principal amount of all Class 3 (Convenience Claims) and Class 4
(Senior Unsecured Claims) have been made. Thereafter, Regions
Bank will receive a true-up of its Subordinated Distribution and
then may participate in future Distributions to Claims in Class 4
on a Pro Rata basis. If Regions Bank is paid in full on account
of its Regions Deficiency Claim then the Subordinated Creditors
will be authorized to participate in future Distributions to
Claims in Class 4 on a Pro Rata basis based upon the relative
amount of all Senior Unsecured Claims in Class 4 and the
Subordinated Claims at the time of each Distribution and
subsequent distributions to Subordinated Creditors will be made
directly to each Subordinated Creditor. No distributions are
anticipated to be made on account of Interests under the Plan.
The Plan was amended to provide that the Debtors, the Post-
Confirmation Debtors, the Committee, the Plan Administrator,
Oversight Committee, and each of their members, officers,
directors, advisors, agents, attorneys, and employees, will
neither have nor incur any liability to any Person or Entity for
any act taken or omitted to be taken by any Exculpated Person in
connection with or related to the formulation, negotiation,
preparation, dissemination, implementation, administration,
Confirmation or consummation of the Plan, this Disclosure
Statement or any contract, instrument, release or other agreement
or document created or entered into in connection with the Plan.
From and after the Effective Date, all Persons and Entities are
permanently enjoined from commencing or continuing in any manner,
any suit, action or other proceeding, on account of or respecting
any claim, demand, liability, obligation, debt, right, Cause of
Action, Interest or remedy against the Debtors or the Estates.
A full-text copy of the First Amended Disclosure Statement, dated
Sept. 22, is available for free at:
http://ResearchArchives.com/t/s?7724
About Merit Group
Based in Spartanburg, South Carolina, The Merit Group Inc.,
formerly Lancaster Distributing Company, serves as one of the
leading paint sundries distributors in the United States. Its
markets also include Mexico, the Caribbean Islands, Central
America and South America.
Merit Group filed for Chapter 11 bankruptcy protection (Bankr. D.
S.C. Lead Case No. 11-03216) on May 17, 2011. Judge Helen E.
Burris presides over the case. Michael M. Beal, Esq., McNair Law
Firm PA, represents the Debtors. The Debtors selected Kurtzman
Carson Consultants LLC as their claims agent; and Morgan Joseph
TriArtisan LLC, investment banker, and Alvarez & Marsal North
America, LLC, as financial advisors. Merit Group disclosed
7,004,048 in assets and $66,609,946 in liabilities as of the
Chapter 11 filing.
DIP Lender Regions Bank is represented by lawyers at Nexsen Pruet
Jacobs & Pollard and Parker, Hudson, Rainer & Dobbs, LLP.
The U.S. Trustee has named seven members to the Official Committee
of Unsecured Creditors. The Committee is represented by Cole,
Schotz, Meisel, Forman & Leonard, P.A. The Committee tapped
McCarthy Law Firm LLC as co-counsel, J.H. Cohn LLP as its
financial advisor.
On July 29, 2011, the Debtors consummated the sale of
substantially all of their assets to MG Distribution, LLC. The
Merit Group changed its name to TMG Liquidation Company following
the sale. MG Distribution LLC bought the business for
$44 million.
MOORE SORRENTO: Wells Fargo Wants Accounting of Cash Use
--------------------------------------------------------
Secured creditor and party-in-interest Wachovia Financial
Services, Inc., a subsidiary of Wells Fargo Bank, N.A., asks the
U.S. Bankruptcy Court for the Northern District of Texas to deny
Moore Sorrento, LLC's request to access cash collateral. In the
alternative, Wachovia Financial asks that the Court require the
Debtor to provide an accounting for how it previously spent funds.
According to Wachovia Financial, the Debtor seeks to use Wells
Fargo's cash collateral to fund the prepetition tenant improvement
reimbursements purportedly owing to its tenants. Under the terms
of the Senior Loan Documents, the Debtor drew funds prepetition to
pay the very tenant improvement expenses the Debtor now seeks to
pay from Wells Fargo's cash collateral. The Debtor's proposal to
use cash collateral is a cure payment under the various tenants'
leases that would only become due and owing upon this Court's
granting of a motion to assume the tenants' leases.
Wachovia Financial is represented by:
Joseph G. Epstein, Esq.
J. Frasher Murphy, Esq.
Sean B. Davis, Esq.
WINSTEAD PC
1100 JPMorgan Chase Tower
600 Travis Street
Houston, Texas 77002
Tel: (713) 650-8400
Fax: (713) 650-2400
E-mail: epstein@winstead.com
fmurphy@winstead.com
sbdavis@winstead.com
About Moore Sorrento
Hurst, Texas-based Moore Sorrento, LLC, owns real property located
in Moore, Oklahoma, commonly known as the Shops at Moore, which
the Company operates as a retail shopping center. The center's
current 23 tenants offer various goods and services to retail
customers.
Moore Sorrento filed Chapter 11 bankruptcy protection (Bankr. N.D.
Tex. Case No. 11-44651) on Aug. 17, 2011. J. Robert Forshey,
Esq., and Matthew G. Maben, Esq., at Forshey & Prostok, LLP, in
Fort Worth, Tex., serve as the Debtor's counsel. In its
schedules, Moore Sorrento disclosed assets of $43,259,900 and
liabilities of $42,262,158 as of the Petition Date.
MSR RESORT: Reaches Deal With Mezzanine Lender
----------------------------------------------
Bill Rochelle, the bankruptcy columnist for Bloomberg News,
reports that the five resorts foreclosed in January by Paulson &
Co. and Winthrop Realty Trust reached agreement with a mezzanine
lender affiliated with MetLife Inc. that would permit the Chapter
11 reorganization to continue into September 2012.
Mr. Rochelle recounts that last month the resorts reached an
interim agreement with the Government of Singapore Investment
Corp., the holder of $360 million in mezzanine debt. The Singapore
investment fund had been demanding a quick conclusion to the
Chapter 11 process begun early this year. The resorts wanted a
lengthy reorganization to restructure the business, not a short
Chapter 11 case to simply adjust the balance sheet.
Along the lines of the Singapore settlement, the resorts,
according to the Bloomberg report, agreed to pay MetLife accrued
interest on Dec. 15 and to keep interest payment current
thereafter. Interest will accrue at the non-default rate until
September 2012 and at the higher default rate later. When the
Chapter 11 case is concluded, the resorts will pay MetLife's
expenses in connection with the bankruptcy.
Mr. Rochelle relates that as part of the settlement, MetLife won't
object to an extension of the resort's exclusive right to propose
a Chapter 11 plan until September 2012. The resorts' motion for
longer exclusivity is scheduled for hearing Oct. 11.
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.
The Debtors have a letter of intent to sell the Doral Golf Resort
and Spa in Miami for $170 million. There will be an auction in
search of higher offers. The owners believe that the offer implies
a value for all the resorts "significantly" exceeding the $1.5
billion in debt.
NEW KENT: Owes Colonial Virginia Bank $1 Million
------------------------------------------------
Jeremy Slayton at Richmond Times-Dispatch reports that New Kent
Courthouse Village LLC filed for Chapter 11 protection in the U.S.
Bankruptcy Court in Richmond, Virginia, on Sept. 29, 2011.
According to the report, Colonial Virginia Bank in New Kent was
listed as the largest unsecured creditor, with a claim of
$1 million.
The report says John Crump, managing partner of New Kent
Courthouse Village, had said last year that the company was
investing $32 million to build 84 residences and 28 commercial
buildings on New Kent Highway about 2.5 miles north of the
Providence Forge exit on Interstate 64.
Based in New Kent, Virginia, New Kent Courthouse Village LLC filed
for Chapter 11 protection on Sept. 29, 2011 (Bankr. E.D. Va. Case
No. 11-36177). Judge Kevin R. Huennekens presides over the case.
Roy M. Terry, Jr., Esq., at Durrettecrump PLC represents the
Debtor. The Debtor estimated both assets of $1 million and
$10 million, and debts of between $10 million and $50 million.
NEWPAGE CORP: S&P Rates $350-Mil. DIP ABL Facility at 'BB+'
-----------------------------------------------------------
Standard & Poor's Ratings Services assigned its 'BB+' rating to
Miamisburg, Ohio-based NewPage Corp.'s $350 million debtor-in-
possession (DIP) asset based revolving loan (ABL) facility and its
'BB-' rating to its $250 million DIP term loan.
The facilities mature 18 months after the filing date of the
bankruptcy petition (Sept. 7, 2011). The DIP facilities constitute
super-priority administrative expense claims. The collateral
package for the DIP facilities primarily includes a first priority
lien on working capital assets and a second priority lien (junior
to NewPage's pre-petition first-lien notes and second-lien notes)
on pre-petition property, plant, and equipment (PP&E).
The company's corporate credit rating remains 'D'.
Miamisburg, Ohio-based NewPage Corp., its parent companies NewPage
Holding Corp. and Newpage Group, and certain of their U.S.
subsidiaries filed a voluntary petition under Chapter 11 of the
U.S. Bankruptcy Code on Sept. 7, 2011. Separately, the company's
Canadian subsidiary, NewPage Port Hawkesbury Corp., has brought
proceedings before the Supreme Court of Nova Scotia under the
Companies' Creditors Arrangement Act of Canada.
On Sept. 8, 2011, the U.S. bankruptcy court in Delaware issued an
interim order which authorized the company to borrow up to $495
million of the $600 million DIP facilities, (subject to borrowing
base and other availability limitations). Proceeds from the
initial borrowings were used to repay the company's pre-petition
asset-based lending facility, pay certain reorganization costs,
and to add cash to its balance sheet. On Oct. 5, 2011, the
bankruptcy court issued a final order authorizing access to the
full amount available under the DIP facilities.
The ratings primarily reflect Standard & Poor's view of the
prospects for full cash repayment of the ABL facility and the term
loan at the time the company completes its reorganization and
emergence from its Chapter 11 bankruptcy proceeding in the U.S.
"We rated the ABL facility two notches higher than the term loan
based on our assessment of the recovery value afforded by the
assets securing the ABL facility in the event that liquidation
becomes necessary," S&P said.
"These DIP loans ratings are a point-in-time rating. Accordingly,
the ratings are effective only for the date of this report and we
will not review, modify, or provide ongoing surveillance of the
ratings. Standard & Poor's notes that these ratings are based on,
among other things, the credit agreement dated Sept. 8, 2011, the
interim order by the U.S. bankruptcy court dated Sept. 8,
2011, and the final order dated Oct. 5, 2011," S&P said.
NORMAN REGIONAL: Fitch Affirms Ratings on Four Bonds at 'BB+'
-------------------------------------------------------------
As part of its ongoing surveillance efforts, Fitch Ratings has
affirmed the 'BB+' rating on the following revenue bonds issued by
Norman Regional Hospital Authority, OK:
-- Approximately $90.4 million series 2007;
-- Approximately $67 million series 2005;
-- Approximately $47.2 million series 2002;
-- Approximately $17.7 million series 1996B.
The Rating Outlook is Stable.
The bonds are secured by a pledge of gross revenues of the
obligated group.
Improved Financial Performance: Norman Regional Hospital's (NRH)
improved financial performance in fiscal 2011 was driven by better
cash flow due to its new Healthplex facility and improved
liquidity due to light capital spending. Fitch expects sustained
improvements through fiscal 2012.
Dominant Market Share: NRH holds a leading market share of
approximately 60% in its primary service area of Cleveland County.
Since the City Council must give approval to any hospital or
physician construction project, entry into the service area has
been limited.
High Debt Burden: NRH's debt burden is high as indicated by
maximum annual debt service (MADS) equating to 5.5% of fiscal 2011
revenues (compared to the 'BBB' median of 3.3% and non-investment
grade median of 3.4%).
Adequate Debt Service Coverage: NRH's improved operating
profitability in fiscal 2011 resulted in adequate coverage of MADS
of 2.1 times (x) for fiscal 2011, which is improved from 1.7x in
2010 and 1.1x 2009.
Continued improvement to operating performance and liquidity
position over the next couple years may warrant positive rating
action.
The 'BB+' affirmation reflects NRH's solid market position and
good financial performance with operating profitability, liquidity
and capital related ratios all improved year over year, as
expected. The primary credit concern is NRH's high debt burden.
NRH's unrestricted cash and investment position increased by $26.6
million (39%) in fiscal 2011 to $95 million from $68.4 million at
fiscal year-end (FYE) 2010 due primarily to a planned reduction in
capital spending and improved collections. Capital spending in
fiscal 2011 was only 33% of depreciation expense after the prior
four years of robust spending at an average of 323.6%.
Liquidity metrics at FYE 2011 including days cash on hand, cushion
and cash-to-debt ratios (132.3 days, 4.9x and 41.1%, respectively)
all showed sharp improvement over the prior year (97.7, 3.6x and
28.6%). Since FYE 2008, days in accounts receivable improved to
45.3 from 73.0.
Although NRH did not meet its operating budget of 1.2% operating
margin in fiscal 2011, operating profitability improved to a 0.4%
operating margin and 10.9% operating EBITDA margin compared to
negative 0.4% and 9.7%, respectively in fiscal 2010. The improved
profitability was due, in part, to tight expense management,
improved coding and clinical documentation and better volumes at
the HealthPlex campus, a 136 bed hospital located four miles from
the primary campus, which opened in 2009. Solid operating cash
flow is expected to be sustained while operating margins gradually
improve. Fitch expects NRH to meet its 2012 budgeted operating
margin of 1.7%.
Fitch's primary credit concern remains NRH's high debt burden.
MADS equated to 5.5% of fiscal 2011 revenues compared to the 'BBB'
median of 3.3%. Moreover, debt-to- capitalization of 62.5%
although down from 67.2% in 2010, exceeds the 'BBB' median of
48.4%. Future capital spending is expected to be very modest.
The capital budget for 2012 is $10.3 million (43% of depreciation
expense), which is manageable.
Norman Regional Hospital Authority is a public trust that was
created by the city to operate Norman Regional Hospital, a 337
licensed bed acute care hospital. The system is currently
composed of Norman Regional Hospital, 45-bed Moore Medical Center
and HealthPlex Hospital, a newly constructed 136 bed hospital
located four miles from the main hospital that opened in October
2009. Total operating revenue in fiscal 2011 (June 30 year end)
was $352.4 million. NRH discloses quarterly and annual financial
information and utilization statistics to the MSRB's EMMA system.
NORTEL NETWORKS: Committee Hires Alvarez & Marsal as Fin'l Advisor
------------------------------------------------------------------
BankruptcyData.com reports that Nortel Networks' official
committee of retirees and official committee of long-term
disability participants filed with the U.S. Bankruptcy Court a
joint motion to retain Alvarez & Marsal Healthcare Industry Group
(Contacts: Ronald Winters and Vincent Bodnar) as financial advisor
at these hourly rates:
-- managing director and senior advisor at $550 to $825;
-- manager, director and senior director at $275 to $550;
-- associate and senior associate at $275 to $375; and
-- analyst at $200 to $275.
About Nortel Networks
Nortel Networks (OTC BB: NRTLQ) -- http://www.nortel.com/-- was
once North America's largest communications equipment provider.
It has sold most of the businesses while in bankruptcy.
Nortel Networks Corp., Nortel Networks Inc., and other affiliated
corporations in Canada sought insolvency protection under the
Companies' Creditors Arrangement Act in the Ontario Superior Court
of Justice (Commercial List). Ernst & Young was appointed to
serve as monitor and foreign representative of the Canadian Nortel
Group.
The Monitor sought recognition of the CCAA Proceedings in the
U.S. by filing a bankruptcy petition under Chapter 15 of the U.S.
Bankruptcy Code (Bankr. D. Del. Case No. 09-10164). Mary
Caloway,Esq., and Peter James Duhig, Esq., at Buchanan Ingersoll &
Rooney PC, in Wilmington, Delaware, serves as the Chapter 15
petitioner's counsel.
Nortel Networks Inc. and 14 affiliates filed separate Chapter 11
petitions (Bankr. D. Del. Case No. 09-10138) on Jan. 14, 2009.
Judge Kevin Gross presides over the case. James L. Bromley, Esq.,
at Cleary Gottlieb Steen & Hamilton, LLP, in New York, serves as
general bankruptcy counsel; Derek C. Abbott, Esq., at Morris
Nichols Arsht & Tunnell LLP, in Wilmington, serves as Delaware
counsel. The Chapter 11 Debtors' other professionals are Lazard
Freres & Co. LLC as financial advisors; and Epiq Bankruptcy
Solutions LLC as claims and notice agent. Fred S. Hodara, Esq.,
at Akin Gump Strauss Hauer & Feld LLP, in New York, and
Christopher M. Samis, Esq., at Richards, Layton & Finger, P.A., in
Wilmington, Delaware, represent the Official Committee of
Unsecured Creditors.
Certain of Nortel's European subsidiaries also made consequential
filings for creditor protection. On May 28, 2009, at the request
of the Administrators, the Commercial Court of Versailles, France
ordered the commencement of secondary proceedings in respect of
Nortel Networks S.A. On June 8, 2009, Nortel Networks UK Limited
filed petitions in this Court for recognition of the English
Proceedings as foreign main proceedings under chapter 15 of the
Bankruptcy Code.
Nortel Networks divested off key assets while in Chapter 11.
Nortel has raised $3.2 billion by selling its operations as it
prepares to wind up a two-year liquidation due to insolvency.
In June 2011, Nortel added US$4.5 billion to its cash pile after
agreeing to sell its remaining patent portfolio to Rockstar Bidco
LP, a consortium consisting of Apple Inc., EMC Corporation,
Telefonaktiebolaget LM Ericsson, Microsoft Corp., Research In
Motion Limited, and Sony Corporation. The consortium defeated a
$900 million stalking horse bid by Google Inc. at an auction. The
deal closed in July.
Nortel Networks has filed a proposed plan of liquidation in the
U.S. Bankruptcy Court. The Plan generally provides for full
payment on secured claims with other distributions going in
accordance with the priorities in bankruptcy law.
OJ GENERAL: Case Summary & 17 Largest Unsecured Creditors
---------------------------------------------------------
Debtor: OJ General Partnership
aka OJ Properties
2601 South Soto Street
Vernon, CA 90058
Bankruptcy Case No.: 11-52127
Chapter 11 Petition Date: October 7, 2011
Court: United States Bankruptcy Court
Central District of California (Los Angeles)
Judge: Sandra R. Klein
Debtor's Counsel: Rachel S. Ruttenberg, Esq.
LAW OFFICES OF MARK E. GOODFRIEND
16255 Ventura Blvd Ste 205
Encino, CA 91436
Tel: (818) 783-8866
Fax: (818) 783-5445
E-mail: rruttenberg@gmail.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 17 largest unsecured creditors filed
together with the petition is available for free at
http://bankrupt.com/misc/cacb11-52127.pdf
The petition was signed by Jim Kolodaro, general partner.
OPEN RANGE: Owes $73.5 Million in Loan to Agriculture Dept.
-----------------------------------------------------------
Ann Shrader at The Denver Post reports that the U.S. Department of
Agriculture will work with the Department of Justice to "protect
the federal government's interest" in being repaid for a loan
issued to Open Range Communications.
Ms. Shrader says the U.S. Department of Agriculture had given Open
Range a $267 million loan under the Rural Utility Service's
broadband loan program in January 2009. The current balance of
the loan is $73.5 million. The USDA's rural development program
has a priority interest in Open Range's assets so it is first in
line among the company's creditors.
Greenwood Village, Colo.-based Open Range Communications Inc., a
provider of wireless broadband services to 26,000 rural customers
in 12 states, filed a Chapter 11 petition (Bankr. D. Del. Case No.
11-13188) on Oct. 6, 2011, to either sell the business or shut
down and liquidate. Open Range listed about $114 million in
assets and $110 million in debts. Open Range started its WiMax
broadband and voice service in late 2009, backed by a $267 million
loan from the U.S. Department of Agriculture's Rural Utility
Service and $100 million invested by One Equity Partners, a
financing arm of JPMorgan Chase & Co.
Judge Kevin J. Carey presides over the case. Marion M. Quirk,
Esq., at Cole, Schotz, Meisel, Forman & Leonard, serves as
bankruptcy counsel. Logan & Co. serves as claims agent. The
petition was signed by Chris Edwards, chief financial officer.
PACIFIC AVENUE: Committee Objects to Sunset Management Claim
--------------------------------------------------------------
Susan Stabley at Charlotte Business reports Matthews lawyer Dennis
O'Dea, attorney for the committee of unsecured creditors, filed an
objection to a $476,264 claim from Sunset Management Group. A
hearing on the objection is scheduled for Oct. 12, 2011.
The report also says about $1.1 million has been set aside to
repay EpiCentre contractors and others.
About Pacific Avenue
Pacific Avenue, LLC, is a North Carolina limited liability company
whose principal place of business is located in Charlotte, North
Carolina. Together with Pacific Avenue II, LLC, the Company owns
and operates the EpiCentre, a mixed-use commercial development
consisting of approximately 302,000 rentable square feet of office
and retail/entertainment space, plus an underground parking deck,
located at 210 E. Trade St. in the city block surrounded by the
light rail line, Fourth Street, College Street, and Trade Street
in uptown Charlotte, North Carolina. The companies were led by
Afshin Ghazi.
Pacific Avenue LLC filed for Chapter 11 bankruptcy protection
(Bankr. W.D. N.C. Case No. 10-32093) on July 22, 2010. Joseph W.
Grier, III, Esq., at Grier, Furr & Crisp, P.A., assists the
Company in its restructuring effort. The Company estimated up to
$50,000 in assets and $50 million to $100 million in debts in its
bankruptcy petition.
The Company's affiliate, Pacific Avenue II, filed a separate
Chapter 11 petition.
Linda W. Simpson, the U.S. Bankruptcy Administrator for the
Western District of North Carolina, appointed six members to the
official committee of unsecured creditors in the Chapter 11 case
of Pacific Avenue, LLC.
PENINSULA HOSPITAL: U.S. Trustee Wants Revival DIP Loans Denied
---------------------------------------------------------------
Tracy Hope Davis, the U.S. Trustee for Region 2, asks the U.S.
Bankruptcy Court for the Eastern District of New York to deny
Peninsula Hospital Center, et al.'s request to obtain secured
postpetition financing on a superpriority secured basis.
According to the U.S. Trustee, the Debtors sought approval of
three agreements related to proposed debtor-in-possession
financing from Revival Acquisition Group, LLC:
i) a credit and security agreement, dated Sept. 1, 2011, for an
$8 million line of credit secured by a priming lien on all of
the Debtors' assets;
ii) a letter agreement, dated Sept. 1, 2011, which transfers
control of the Debtors to Revival; and
iii) a collateral sharing agreement, dated Sept. 19, 2011,
between the Debtors, Revival and the 1199 SEIU Benefit Funds.
The U.S. Trustee relates that the agreements:
-- violate Section 364 of the Bankruptcy Code because they
divest the Debtors of control over their business operations
and their ability to fulfill their duties as fiduciaries, and
confer the benefits and protections of bankruptcy on Revival,
rather than upon the Debtors, creditors and the estates;
-- tip the balance of power to Revival to an extraordinary
extent that approval of the agreements would inhibit meaningful
negotiations with other creditors and parties-in-interest,
forcing them to accept courses of action or plan terms without
recourse or risk implosion of the Debtors' cases.
In their motion, the Debtors related the terms of the credit
agreement includes, among other things:
Borrowers: Peninsula Hospital Center &
Peninsula General Nursing Home
Corporation
Lender: Revival Funding Co., LLC
Credit Facility: A line of credit not to exceed
$8,000,000
Use of Proceeds: Primarily for the financing the
Debtors' day-to-day operations,
including, without limitation,
payroll expenses and outstanding
postpetition creditor
obligations.
Availability: Advances will be available
immediately upon entry of the
order authorizing the financing,
including the terms of the Letter
Agreement, and signing of the LOC
Agreement and Related Documents.
Financial Terms: Prior to the occurrence of a
repayment Event of Default, the
outstanding principal balance of
the Credit Agreement will bear
interest at the rate of 6% per
annum. Upon the occurrence of a
repayment Event of Default, and
for as long as the same will
remain outstanding, at the option
of Postpetition Lender, all
Obligations of Borrower will bear
interest at the rate of 9% per
annum, which will be due as one
lump sum payment.
Collateral: All of Debtors' tangible and
intangible assets and property
will be collateral for all
obligations incurred by the
Debtors.
Carve Out: Lender's security interests and
liens on the Collateral will be
subject and subordinate only to:
(i) payment of U.S. Trustee's
fees plus interest at the
statutory rate for any fees not
paid in a timely manner, and any
fees payable to the Clerk of the
Bankruptcy Court; (ii) fees and
expenses of attorneys,
accountants and other
professionals retained in the
Chapter 11 cases, to the extent
allowed by the Bankruptcy Court,
but in no event to exceed
$500,000; and (iii) reasonable
fees and expenses of a Chapter 7
trustee allowable in an amount
not to exceed $15,000.
Lien Priority: The Postpetition Lender is
granted perfected security
interests and liens, subject only
to the Carve Out and certain
prior filed mortgages, security
interests and liens.
Funding Conditions: the entry of any Interim Order
and the entry of the Final Order,
satisfactory in form and
substance to the Postpetition
Lender approving, granting or
authorizing (i) the transactions
contemplated by the Credit
Agreement Documents, and (ii) the
liens and superpriority
administrative claim status and
the lien priorities.
The Debtors also requested for permission to use the cash
collateral in which the Union has any interest.
The U.S. Trustee is represented by:
William E. Curtin, Esq.
271 Cadman Plaza East, Suite 4529
Brooklyn, NY 11201
Tel: (718) 422-4960
Fax: (718) 422-4990
About Peninsula Hospital Center
Peninsula Hospital Center operates a 173-bed acute care community
teaching hospital campus with resident training programs in
orthopedics, general surgery, family practice, dentistry and
podiatry.
Wayne S. Dodakian, Vinod Sinha, and Shannon Gerardi filed an
involuntary Chapter 11 bankruptcy protection against Peninsula
Hospital Center in the U.S. Bankruptcy Court for the Eastern
District of New York (Case No. 11-47056) on Aug. 16, 2011. Judge
Elizabeth S. Stong presides over the case. Marilyn Cowhey Macron,
Esq., Macron & Cowhey, represents the petitioners.
The Alleged Debtors filed for Chapter 11 bankruptcy protection on
Sept. 19, 2011. They listed total assets of $34.6 million and
$70.8 million in liabilities as of May 31, 2011. Abrams
Fensterman, et al. represent the Debtors in their restructuring
efforts. Alvarez & Marsal Healthcare Industry Group, LLC serves
as financial advisors, and Daniel T. McMurray at Focus Management
Group acts as patient care ombudsman.
The U.S. Trustee for Region 2, appointed five unsecured creditors
to serve on the Official Committee of Unsecured Creditors of
Peninsula Hospital Center.
POST STREET: Files Chapter 11 Plan of Reorganization
----------------------------------------------------
Post Street, LLC, and Festival Retail Fund 1 228 Post Street,
L.P., filed with the U.S. Bankruptcy Court for the Northern
District of California, San Francisco Division, a Chapter 11 plan
of reorganization and an explanatory disclosure statement.
The Plan is premised on an immediate infusion of cash, as new
capital to the Debtors, provided by Stanley W. Gribble, which,
together with the Debtors' Cash on hand, will be used by the
Debtors, and will be in a sufficient amount, to fund the Brooks
Brothers Work, establish a working capital reserve for the
Debtors, and pay all Administrative Priority Claims and Priority
Tax Claims.
Completing the Brooks Brothers Work will satisfy key conditions
precedent to the commencement of Brooks Brothers' obligation to
open for business and pay rent under the Brooks Brothers Lease.
The increased revenue and profitability from the Property, as
stabilized by the implemented Brooks Brothers Lease, together with
the Debtors' existing assets and the New Capital Contribution,
will be sufficient to pay (1) all amounts due on the Effective
Date, and (2) all amounts that will come due under the New
Mortgage Note. Mr. Gribble is sufficiently confident in the
Debtors' ability to pay these amounts that he is committing to
contribute Cash to the Debtors to fund the New Capital
Contribution as equity, which by definition will be junior to all
present and future creditors, including the Mortgage Lender.
The Mortgage Lender asserts a Secured Claim against the Debtors
based on the Loan and underlying Mortgage Note. The Plan proposes
to provide the Mortgage Lender with a new promissory note and deed
of trust. The New Mortgage Note will be in a principal amount
equal to the Mortgage Lender's Allowed Claim as of the
Confirmation Date. The principal amount of the New Mortgage Note
will be $59,532,449, or the amount determined by the Bankruptcy
Court. The New Mortgage Note will be secured by the New Deed of
Trust, which will grant the Mortgage Lender, among other things, a
security interest in the Property, certain personal property used
at the Property, rents, and the subordinate New Capital
Contribution. Thus, the Mortgage Lender will retain a lien on the
same collateral it has now, supplemented by the New Capital
Contribution. The value of the Property will be increased through
the Brooks Brothers Work and that portion of the New Capital
Contribution that is allocated to working capital. The Mortgage
Lender will receive current monthly interest payments at the rate
that the Bankruptcy Court determines is a fair market rate of
interest. Interest on the New Mortgage Note will be payable
monthly in arrears beginning the second month after the date that
the Plan becomes effective. The entire balance of the New
Mortgage Note will be all due and payable on the date that is five
years from the Effective Date. The Debtors can repay the entire
New Mortgage Note at their option before the due date without
penalty.
Creditors holding general unsecured Claims not in Class 3 will
receive future cash distributions equal to 100% of their
respective Allowed Class 4 Claims, which will be paid in four
equal quarterly installments over the year after the Effective
Date as set forth in the Plan.
The holders of Post Street Interests and Festival Interests will
receive no distribution on account of their existing interests in
the Debtors under the Plan. New equity in the Reorganized Debtors
will be issued to the holder of Post Street Interests and Festival
Interests in exchange for the New Capital Contribution.
The Debtors believe that through the Plan, the holders of Claims
in impaired Classes will obtain a greater recovery than would be
available if the Debtors' assets were liquidated on the Effective
Date under chapter 7 of the Bankruptcy Code.
A full-text copy of the Disclosure Statement, dated Sept. 13, is
available for free at:
http://ResearchArchives.com/t/s?7685
About Post Street LLC
Post Street LLC, based in San Francisco, California, filed for
Chapter 11 bankruptcy (Bankr. Case No. 11-32255) on June 15, 2011.
Judge Thomas E. Carlson presides over the case. Eric D. Goldberg,
Esq., at Stutman, Treister and Glatt, serves as the Debtor's
bankruptcy counsel. Nossaman LLP serves as special litigation
counsel. The Debtor disclosed assets of $3,316 plus unknown
amount and liabilities of $55,906,564 as of the Chapter 11 filing.
The petition was signed by Stanley W. Gribble, authorized agent.
PREMIER TRAILER: Court Approves Lazard as Investment Banker
----------------------------------------------------------- The
U.S. Bankruptcy Court for the District of Delaware authorized PTL
Holdings LLC and Premier Trailer Leasing Inc. to employ Lazard
Middle Market LLC as their investment banker, nunc pro tunc to
Sept. 15, 2011.
According to the Troubled Company Reporter on Sept. 28, 2011,
Lazard will render services, including:
a. reviewing and analyzing the Debtors' business, operations
and financial projections;
b. evaluating the Debtors' potential debt capacity in light of
its projected cash flows;
c. assisting in the determination of a capital structure for
the Debtors; and
d. assisting in the determination of a range of values for the
Debtors on a going-concern basis;
Lazard will be paid according to this fee structure:
a. A monthly fee for each month after March 2011 of $50,000,
payable until the earlier of the completion of the
Restructuring or the termination of Lazard's engagement.
Fifty percent (50%) of the Monthly Fees paid in respect of
any months following the second month of the engagement
will be credited (without duplication) against any
Restructuring Fee, Sale Transaction Fee, Minority Sale
Transaction Fee, or Financing Fee payable; provided, that,
in the event of a Chapter 11 filing, such credit will only
apply to the extent that such fees are approved in entirety
by the Bankruptcy Court, if applicable.
b. A fee equal to $1 million, payable upon the consummation
of a Restructuring -- Restructuring Fee -- provided,
however, that if a Restructuring is to be completed through
a "pre-packaged" or "pre-arranged" plan of reorganization,
the Restructuring Fee shall be earned and shall be payable
upon the earlier of (i) execution of definitive agreements
with respect to such plan and (ii) delivery of binding
consents to such plan by a sufficient number of creditors
and/or bondholders, as the case may be, to bind the
creditors or bondholders, as the case may be to the plan;
provided, further, that in the event that LMM is paid a fee
in connection with a "prepackaged" or "pre-arranged" plan
and such plan is not consummated, LMM shall return such fee
to the Company.
c. (i) If, the Debtors consummate a Sale Transaction
incorporating all or a majority of the assets or all or a
majority or controlling interest in the equity securities
of the Debtors, LMM will be paid a fee -- Sale Transaction
Fee -- equal to the greater of (A) the fee calculated based
on an Aggregate Consideration as set forth in Schedule I to
the Engagement Letter or (B) the Restructuring Fee.
(ii) If, the Debtors consummate any Sale Transaction not
covered by clause (i) above, the Debtors will pay LMM a
Minority Sale Transaction Fee to be mutually agreed in good
faith by the Debtors and LMM, which fee will approximately
compensate LMM in light of the magnitude and complexity of
the transaction and the fees customarily paid to investment
bankers of similar standing for similar transactions.
(iii) Any Sale Transaction Fee or Minority Sale Transaction
Fee will be payable upon consummation of the applicable
Sale Transaction.
d. A fee, payable upon consummation of a Financing, equal to
the amount set forth in Schedule II of the Engagement
Letter. One-half of any Financing Fee(s) will be credited
against any Restructuring Fee or Sale Transaction Fee
subsequently payable under the Engagement Letter.
e. For the avoidance of any doubt, more than one fee may be
payable, however, LMM will not at any time be entitled to
receive both a Restructuring Fee, and a Sale Transaction Fee
or Minority Sale Transaction Fee, as a result of the
consummation of a transaction or transaction for which LMM
has been engaged.
g. None of the fees will be earned or payable to LMM at any
time if the Debtors voluntarily or involuntarily liquidates
its assets in chapter 7 proceedings in whole or in part
during the term of the Engagement Letter.
During the 12-month period preceding the Petition Date, the
Debtors made aggregate payments to LMM of $1,075,948.41 pursuant
to the terms of the LMM Agreement, which payments consisted of
$1,075,000 in Monthly Fees, and (ii) aggregate expense
reimbursements of $948.41. No amounts were due to LMM as of the
Petition Date.
Andrew Torgove -- andrew.torgove@lazardmm.com -- managing director
at LMM, attest that the managing directors, senior directors,
directors, vice presidents, senior associates, associates,
analysts and administration of LMM: (a) do not have any connection
with the Debtors or their affiliates, their creditors, the U.S.
Trustee, or any person employed in the office of the U.S. Trustee,
or any other party in interest, or their respective attorneys and
accountants, (b) are "disinterested persons," as that term is
defined in section 101(14) of the Bankruptcy Code, and (c) do not
hold or represent any interest adverse to the Debtors' estates.
About Premier Trailer Leasing
Founded in 2005, PTL Holdings LLC and Premier Trailer Leasing,
Inc., provide semi-trailer rentals, specializing in road-ready
semi-vans and flatbeds for the mid-market segment of the
transportation industry. Headquartered in Grapevine, Texas, they
operate their business out of 19 branches in 15 different states
in the United States.
PTL Holdings and Premier sought bankruptcy protection (Bankr. D.
Del. Lead Case No. 11-12676) on Aug. 23, 2011. Brendan Linehan
Shannon presides over the case. Pachulski Stang Ziehl & Jones LLP
serves as the Debtors' bankruptcy counsel. Kurtzman Carson
Consultants, LLC, serves as claims and noticing agent. PTL
Holdings estimated $100 million to $500 million in assets and
debts. The petitions were signed by Scott J. Nelson, chief
executive officer.
Garrison Loan Agency Services LLC, the administrative agent under
the First Lien Credit Agreement, is represented by Proskauer Rose
LLP. Second lien lender Fifth Street Mezzanine Partners III,
L.P., is represented by Young Conaway Stargatt & Taylor LLP and
Kramer Levin Naftalis & Frankel LLP.
On the Petition Date, the Debtors filed a Prepackaged Plan. The
primary purpose of the Plan is to effectuate the restructuring and
substantial de-leveraging of the Debtors' capital structure in
order to bring it into alignment with the Debtors' present and
future operating prospects and to provide the Debtors with greater
liquidity. The Plan gives the First Lien Lenders, owed $84
million, 100% of the equity of reorganized Premier in exchange for
the discharge of obligations owed under the First Lien Credit
Agreement. Holders of Second Lien Credit Agreement Claims, worth
$27,100,000, and holders of general unsecured claims, worth
$550,000, will get nothing.
PUBLIC MEDIA: M. Greenwald Resigns as CEO; Replaced by J. Hackett
-----------------------------------------------------------------
Martin W. Greenwald resigned as Public Media Works, Inc.'s Chief
Executive Officer effective as of Sept. 28, 2011.
Effective Oct. 3, 2011, the Company named John Hackett as Chief
Executive Officer. Mr. Hackett has been an independent consultant
since 2010. From 2003 to 2010, Mr. Hackett was Vice President of
Sustainability & Emerging Technologies at Venture Builders.
Public Media Works, Inc., headquartered in Sausalito, Calif., is
engaged in the business of offering self-service kiosks which
deliver DVD and Blu-ray movies and other potentially other
products to consumers. The Company filed for Chapter 11 relief
(Bankr. C.D. Calif. Case No. 11-40137) on Sept. 23, 2011. Judge
Meredith A. Jury presides over the bankruptcy case. Stephan Jan
Meyers, Esq., at Meyers Law Offices, in Palm Springs, Calif.,
represents the Debtor as counsel. In its schedules, the Debtor
disclosed $619,551 in assets and $1,060,012 in liabilities as of
the Petition Date.
In a Form 8-K filing dated Aug. 30, 2011, the Debtor disclosed
that effective as of Aug, 29, 2011, the Company ceased renting DVD
and Blu-Ray movies at its 25 kiosks in Riverside County
California. The Company also furloughed all non-officer
employees. The Company is seeking funding to move the kiosks into
local warehousing and to eventually relocate the kiosks to a
different area and resume operations.
As of May 31, 2011, the Debtor's consolidated balance sheets
showed $862,106 in total assets, $1,169,472 in total liabilities,
and a stockholders' deficit of $307,366.
PURE BEAUTY SALONS: Meeting to Form Creditors Committee on Oct. 18
------------------------------------------------------------------
Roberta DeAngelis, United States Trustee for Region 3, will hold
an organizational meeting on Oct. 18, 2011, at 2:00 p.m. in the
bankruptcy case of Pure Beauty Salons & Boutiques, Inc. The
meeting will be held at:
J. Caleb Boggs Federal Building
844 King Street, Room 5209
Wilmington, DE 19801
The sole purpose of the meeting will be to form a committee or
committees of unsecured creditors in the Debtors' cases.
The organizational meeting is not the meeting of creditors
pursuant to Section 341 of the Bankruptcy Code. A representative
of the Debtor, however, may attend the Organizational Meeting, and
provide background information regarding the bankruptcy cases.
To increase participation in the Chapter 11 proceeding, Section
1102 of the Bankruptcy Code requires that the United States
Trustee appoint a committee of unsecured creditors as soon as
practicable. The Committee ordinarily consists of the persons,
willing to serve, that hold the seven largest unsecured claims
against the debtor of the kinds represented on the committee.
Section 1103 of the Bankruptcy Code provides that the Committee
may consult with the debtor, investigate the debtor and its
business operations and participate in the formulation of a plan
of reorganization. The Committee may also perform other services
as are in the interests of the unsecured creditors whom it
represents.
About Pure Beauty Salons
Pure Beauty Salons & Boutiques Inc. has 436 mall-based locations
operating beauty salons and retailing hair-care products.
Franchisees are operating additional 22 BeautyFirst and 7 Trade
Secret stores. Trade names include Trade Secret, Beauty Express,
BeautyFirst, PureBeauty, and Winston's Barber Shop. About 2,330
people are employed.
Pure Beauty Salons was formed in 2010 by the Luborsky Family Trust
II 2009 for the purpose of acquiring roughly 465 retail stores
from Trade Secret Inc., and its affiliated Chapter 11 debtors
(Bankr. D. Del. Case No. 10-12153) through a sale pursuant to
Section 363 of the Bankruptcy Code. The consideration for the
purchased stores was a credit bid by Regis Corp. of $32.5 million
and the assumption by Pure Beauty Salons of $13 million in TSI's
liabilities.
Pure Beauty Salons filed for bankruptcy (Bankr. D. Del. Case No.
11-13159) on Oct. 4, 2011. Affiliate BeautyFirst Franchise Corp.
filed a separate petition (Bankr. D. Del. Case No. 11-13160).
Judge Mary F. Walrath was initially assigned to the case. Judge
Peter J. Walsh took over. Andrew L. Magaziner, Esq., and Joseph
M. Barry, Esq., at Young Conaway Stargatt & Taylor, LLP, serve as
the Debtors' counsel. The Debtors' investment banker is SSG
Capital Advisors' J. Scott Victor -- jsvictor@ssgca.com The
Debtors' notice, claims solicitation, and balloting agent is Epiq
Bankruptcy Solutions. The Debtor estimated assets and debts both
at $10 million to $50 million. The Debtors owe $15 million to
vendors and landlords. The petition was signed by Brian Luborsky,
chief executive officer.
Secured lender Regis Corp. is represented in the case by Michael
L. Meyer, Esq., at Ravich Meyer Kirkman McGrath Nauman & Tansey
P.A., and Kathleen M. Miller, Esq., at Smith Katzenstein & Furlow
LLP.
REAL MEX: Meeting to Form Creditors Committee on Oct. 14
--------------------------------------------------------
Roberta DeAngelis, United States Trustee for Region 3, will hold
an organizational meeting on Oct. 14, 2011, at 10:00 a.m. in the
bankruptcy case of Real Mex Restaurants, Inc. The meeting will be
held at:
Sheraton Suites Wilmington
422 Delaware Avenue, Delaware Ballroom 3
Wilmington, DE 19801
The sole purpose of the meeting will be to form a committee or
committees of unsecured creditors in the Debtors' cases.
The organizational meeting is not the meeting of creditors
pursuant to Section 341 of the Bankruptcy Code. A representative
of the Debtor, however, may attend the Organizational Meeting, and
provide background information regarding the bankruptcy cases.
To increase participation in the Chapter 11 proceeding, Section
1102 of the Bankruptcy Code requires that the United States
Trustee appoint a committee of unsecured creditors as soon as
practicable. The Committee ordinarily consists of the persons,
willing to serve, that hold the seven largest unsecured claims
against the debtor of the kinds represented on the committee.
Section 1103 of the Bankruptcy Code provides that the Committee
may consult with the debtor, investigate the debtor and its
business operations and participate in the formulation of a plan
of reorganization. The Committee may also perform other services
as are in the interests of the unsecured creditors whom it
represents.
About Real Mex
Based in Cypress, California, Real Mex Restaurants, Inc., owns and
operates restaurants, primarily through its major subsidiaries El
Torito Restaurants, Inc., Chevys Restaurants, LLC, and Acapulco
Restaurants, Inc. It has 178 restaurants, with 149 in California.
There are also 30 franchised locations. It acquired Chevys Inc.
for $90 million through confirmation of Chevy's Chapter 11 plan in
2004.
Real Mex Restaurants and 16 of its affiliates filed for Chapter 11
bankruptcy protection (Bankr. D. Del. Case Nos. 11-13122 to
11-13138) on Oct. 4, 2011. Judge Brendan Linehan Shannon oversees
the case. Judge Peter Walsh was initially assigned to the case.
The Debtors are represented by Mark Shinderman, Esq., Fred
Neufeld, Esq., and Haig M. Maghakian, Esq., at MILBANK, TWEED,
HADLEY & McCLOY LLP; and Laura Davis Jones, Esq., and Curtis A.
Helm, Esq., at PACHULSKI STANG ZIEHL & JONES LLP as counsel. The
Debtors' financial advisors are Imperial Capital, LLC. The
Debtors' claims, noticing, soliciting and balloting agent is Epiq
Bankruptcy Solutions, LLC.
Assets are $272.2 million while debt totals $250 million,
according to the Chapter 11 petition. The petitions were signed
by Richard P. Dutkiewiez, chief financial officer and executive
vice president.
Counsel to GE Capital Corp., the DIP Agent and the Prepetition
First Lien Secured Agent, are Jeffrey G. Moran, Esq., and Peter P.
Knight, Esq., at LATHAM & WATKINS LLP; and Kurt F. Gwynne, Esq.,
at REED SMITH LLP as counsel.
Counsel to the Prepetition Secured Second Lien Trustee are Mark F.
Hebbeln, Esq., and Harold L. Kaplan, Esq., at FOLEY & LARDNER LLP.
Counsel to the Majority Prepetition Second Lien Secured
Noteholders are Adam C. Harris, Esq., and David M. Hillman, Esq.,
at SCHULTE ROTH & ZABEL LLP; and Russell C. Silberglied, Esq., at
RICHARDS LAYTON & FINGER.
Z Capital Management LLC, which holds nearly 70% of the Opco term
loan, is represented by Derek C. Abbott, Esq., and Chad A. Fights,
Esq., at MORRIS NICHOLS ARSHT & TUNNELL LLP; and Lee R. Bogdanoff,
Esq., and Whitman L. Holt, Esq., at KLEE TUCHIN BOGDANOFF & STERN
LLP.
REITTER CORP: Gets 28 More Days to File Amended Disclosures
-----------------------------------------------------------
The U.S. Bankruptcy Court for the District of Puerto Rico entered
an order in response to Reitter Corporation's main creditor --
Banco Popular de Puerto Rico's request.
As reported in the Troubled Company Reporter on Sept. 27, 2011,
the Debtor related that it has been analyzing its options, and has
been negotiating the terms for a sale of its assets with its main
creditor, Banco Popular. The Debtor told the Court that it will
not be ready to file its amended disclosure statement before the
hearing scheduled for Sept. 27.
On Sept. 8, Banco Popular de Puerto Rico, asked that the Court:
i) clarify the deadline to file the amended disclosure
statement;
ii) set the deadline to file objections thereto;
iii) clarify that the amended disclosure statement will not be
considered at the Sept. 27, hearing;
iv) set another hearing for the consideration of the amended
disclosure statement and any objections thereto; and
v)order the Debtor to mail the order with the amended
disclosure statement and plan at least 28 days before the
hearing for consideration of the amended disclosure statement.
In a minutes for the Sept. 27, 2011, proceeding, the Court ordered
that:
1. the Debtor is granted 28 days to file amended disclosure
statement and chapter 11 plan, or move the court on status of
the case;
2. the Debtor and treasury are granted 21 days to file
settlement re: objection to claim; and request for payment of
adm. expenses;
3. IRS will amend POC No. 4 to reclassify amounts owed for 1998
as general unsecured, and IRS will amend POC No. 4 within
7 days;
4. the Debtor is granted 14 days to file objection;
5. the Debtor withdraws objection to claim nos. 18, 22, 23, 24,
26,27,28,29,30,37 and consents to lift of stay in favor of
claimants up to point of judgment;
6. the Debtor has no opposition to motion for reconsideration;
and
7. the Debtor consents to lift stay up to point of judgment.
About Reitter Corporation
San Juan, Puerto Rico-based Reitter Corporation dba Hospital San
Gerardo filed for Chapter 11 protection (Bankr. D. P.R. Case No.
10-07152) on Aug. 6, 2010. In its schedules, the Debtor disclosed
$20,440,765 in total assets and $17,250,033 in total debts.
Alexis Fuentes-Hernandez, Esq., at Fuentes Law Offices, in San
Juan, P.R., represents the Debtor as counsel.
ROBERTS BROADCASTING: Files for Chapter 11 Bankruptcy Protection
----------------------------------------------------------------
Kelsey Volkmann at St. Louis Business Journal reports that four
broadcast television stations owned by brothers Michael and Steven
Roberts have filed for Chapter 11 bankruptcy.
According to the report, the stations are in St. Louis as WRBU
Channel 46; Columbia, S.C.; Jackson, Miss.; and Evansville, Ind.
"My brother and I have owned and operated television stations
since the early 1980s, but certain events unique to these stations
have caused these filings," said Steven Roberts, president of the
four companies. Steven Roberts blamed the bankruptcy on UPN.
The report says the stations were designed to be affiliates of the
former UPN network, owned by CBS Corp.
"UPN's minority-oriented programming fit nicely with each
station's demographics and with its potential advertisers," the
report quotes Steven Roberts as stating. "To our surprise, UPN
folded shortly after these stations started broadcasting, which
threw off all of our business plans. Fortunately, those problems
are behind us and the stations are beginning to become profitable.
It was difficult make the decision to file these cases, but the
provisions of Chapter 11 will allow us to deal with the old debts,
preserve the jobs of about 50 employees and continue to service
these communities."
The report notes Mr. Roberts' attorney, A. Thomas DeWoskin of
Danna McKitrick, said the total debt among the four TV stations is
estimated at more than $3 million, and their assets are
approximately $1 million.
The report relates that the Roberts expect the TV stations'
reorganization plans to be prepared within the next six months.
Ms. Volkmann says, in March, CBS Corp. won a more than $1 million
judgment against Roberts Broadcasting over a payment dispute for
syndication fees. Separately, Warner Bros. sued Mr. Roberts
claiming it was owed $1.4 million for licensing agreements for
syndicated programming.
The Roberts Cos. is one of the largest privately held companies in
St. Louis with $139 million in revenue in 2010.
ROCK & REPUBLIC: Court Rejects Quetico's $6MM Admin. Claim
----------------------------------------------------------
Chief Bankruptcy Judge Arthur J. Gonzalez expunged a $6,083,600
administrative expense claim asserted by Quetico LLC against Rock
& Republic Enterprises, saying the claim is not an "actual"
expense and must be disallowed as an administrative claim under 11
U.S.C. Sec. The Claim states that Quetico, in conjunction with
the services it provided to the Debtors, "potentially has certain
contractual indemnity obligations to Costco Canada, pursuant to
which Quetico will be obligated to indemnify Costco Canada for any
and all damages and fees/costs it incurs in connection with
Debtors' transactions." The Claim also asserts that if Simms, one
of the Debtors' distributors, directly sues Quetico, Quetico would
incur further damages and would seek indemnity from the Debtors.
The Claim was filed as an administrative claim because the
Debtors' activities that gave rise to Simms' alleged claims took
place after the Petition Date. The Liquidating Trust established
under the confirmed Plan in the Debtors' case objected, saying the
Claim is a contingent claim for reimbursement.
Quetico -- together with another company, Kontakt US Internationl
-- was an exclusive distributor of Rock & Republic goods in the
United States and Canada beginning Nov. 16, 2010. Quetico and
Kontakt distributed Rock & Republic goods to, among other
retailers, Costco in Canada.
A copy of Judge Gonzalez's Oct. 7, 2011 Opinion is available at
http://is.gd/1GvGZzfrom Leagle.com.
About Rock & Republic
Rock & Republic Enterprises, Inc., was a wholesale and retail
apparel company specializing in an avant-garde and distinctive
line of clothing. Rock & Republic Enterprises, Inc., and Triple
R, Inc., filed for Chapter 11 bankruptcy (Bankr. S.D.N.Y. Case
Nos. 10-11728 and 10-11729) on April 1, 2010, represented by
attorneys at Todtman, Nachamie, Spizz & Johns, P.C. in New York.
Manderson, Schaefer & McKinlay, LLP, was the Company's special
corporate counsel. Rosen Seymour Shapss Martin & Company LLC
served as the Debtors' Forensic Accountants. Donlin Recano served
as claims and noticing agent. The Company estimated $50 million
to $100 million in assets, and $10 million to $50 million in
liabilities.
The Official Committee of Unsecured Creditors was represented by
Robert M. Hirsh, Esq., at Arent Fox LLP, and Schuyler G. Carroll,
Esq., at Perkins Coie LLP, as bankruptcy counsel.
In December 2010, VF Corporation, Rock and Republic and The
Official Committee of Unsecured Creditors executed an asset
purchase agreement for VF to acquire the trademarks and
intellectual property -- but not the business operations or retail
stores -- of Rock and Republic. VF is a global leader in branded
lifestyle apparel with more than 30 brands, including Wrangler(R),
The North Face(R), Lee(R), Vans(R), Nautica(R), 7 For All
Mankind(R), Eagle Creek(R), Eastpak(R), Ella Moss(R), JanSport(R),
lucy(R), John Varvatos(R), Kipling(R), Majestic(R), Napapijri(R),
Red Kap(R), Reef(R), Riders(R)and Splendid(R).
Subsequently, the Debtors, the Committee and VF proposed a plan of
liquidation for Rock & Republic predicated upon the VF deal. VF
agreed to purchase the Debtors' IP assets for $57 million. The
inventory, stores and other assets that VF did not buy were
transferred to a liquidating trust under the plan.
On March 23, 2011, the Bankruptcy Court entered an order
confirming the Amended Joint Consolidated Joint Chapter 11 Plan
for Rock & Republic and Triple R. The Plan became effective on
March 30 and David K. Gottlieb was appointed as the Liquidating
Trust Administrator. Lawyers at Arent Fox represent the
Liquidating Trust.
RUMSEY LAND: Buyer Says Case Dismissal "Premature"
--------------------------------------------------
The Pueblo Bank and Trust Company objects to Rumsey Land Co. LLC's
motion to dismiss its Chapter 11 case. The bank says dismissal is
"premature."
The bank tells the U.S. Bankruptcy Court for the District of
Colorado that it was the successful bidder of substantially all of
the Debtor's assets through the Court approved auction, however,
the transfer of title to the assets has not yet occurred.
Michael G. Milstein, Esq., at Foster Graham Milstein & Calisher
LLP, counsel for the bank and Debtor, has conferred concerning the
proper form of and inclusion in the conveyance documentation to
the bank, and intend to file a stipulated request approving sale
and proposed order to address the matters.
Denver, Colorado-based Rumsey Land Co., LLC, is a privately held
company owning real property in Elizabeth, Nederland, and Evans,
Colorado with water rights, gravel rights, and additional
interests associated with the Evans Property. The Company filed
for Chapter 11 bankruptcy protection (Bankr. D. Colo. Case No.
10-10691) on Jan. 15, 2010. Aaron A. Garber, Esq., Benjamin H.
Shloss, Esq., and Lee M. Kutner, Esq., at Kutner Miller
Brinen,P.C., in Denver, Colorado, assist the Company in its
restructuring effort. The Company estimated $10 million to
$50 million in assets and liabilities as of the Chapter 11 filing.
SAINT VINCENTS: Has Until Thursday to Propose Chapter 11 Plan
-------------------------------------------------------------
The Hon. Cecelia G. Morris of the U.S. Bankruptcy Court for the
Southern District of New York extended Saint Vincents Catholic
Medical Centers of New York, et al.'s exclusive periods to file
and solicit acceptances for the proposed chapter 11 plan until
Oct. 14, 2011; and Dec. 14, respectively.
About Saint Vincents
Saint Vincents Catholic Medical Centers of New York, doing
business as St. Vincent Catholic Medical Centers --
http://www.svcmc.org/-- was anchored by St. Vincent's Hospital
Manhattan, an academic medical center located in Greenwich Village
and the only emergency room on the Westside of Manhattan from
Midtown to Tribeca, St. Vincent's Westchester, a behavioral health
hospital in Westchester County, and continuing care services that
include two skilled nursing facilities in Brooklyn, another on
Staten Island, a hospice, and a home health agency serving the
Metropolitan New York area.
Saint Vincent Catholic Medical Centers of New York and six of its
affiliates first filed for Chapter 11 protection on July 5, 2005
(Bankr. S.D.N.Y. Case Nos. 05-14945 through 05-14951).
St. Vincents Catholic Medical Centers returned to bankruptcy court
by filing another Chapter 11 petition (Bankr. S.D.N.Y. Case No.
10-11963) on April 14, 2010. The Debtor estimated assets of
$348 million against debts totaling $1.09 billion in the new
petition.
Although the hospitals emerged from the prior reorganization in
July 2007 with a Chapter 11 plan said to have "a realistic chance"
of paying all creditors in full, the bankruptcy left the medical
center with more than $1 billion in debt. The new filing occurred
after a $64 million operating loss in 2009 and the last potential
buyer terminated discussions for taking over the flagship
hospital.
Adam C. Rogoff, Esq., and Kenneth H. Eckstein, Esq., at Kramer
Levin Naftalis & Frankel LLP, represent the Debtor in its
Chapter 11 effort.
SHENGDATECH INC: Committee Taps Hogan Lovells as Counsel
--------------------------------------------------------
BankruptcyData.com reports that ShengdaTec's official committee of
unsecured creditors filed with the U.S. Bankruptcy Court a motion
to retain Hogan Lovells US (Contact: Christopher R. Donoho III) as
counsel at these hourly rates:
* partner at $600 to $975;
* of counsel at $630 to $650;
* associate and senior attorney at $600 to $975;
* legal assistant at $160 to $350; and
* Snell & Wilmer (Contact: Robert S. Kinas) as Nevada counsel
for hourly rates ranging from $195 to $695.
About ShengdaTech
Headquartered in Shanghai, China, ShengdaTech, Inc., 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.
ShengdaTech sought Chapter 11 bankruptcy protection from creditors
(Bankr. D. Nev. Case No. 11-52649) on Aug. 19, 2011, in Reno,
Nevada, in the United States.
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 US$295.4 million in assets and US$180.9
million in debt as of Sept. 30, 2011.
The Company's legal representative in its Chapter 11 case is
Greenberg Traurig, LLP. On Aug. 23, 2011, the Court entered an
interim order confirming the Board of Directors Special
Committee's appointment of Michael Kang as the Debtor's chief
restructuring officer.
Alvarez & Marsal North America, LLC, is the Company's chief
restructuring officer.
SHENGDATECH INC: Still Has No Access to Data on China Subsidiaries
------------------------------------------------------------------
Chapter11Cases.com notes that ShengdaTech, Inc. filed a series of
pleadings with the bankruptcy court in Reno, Nevada disclosing the
continuing difficulties that the company is having in gaining
access to information regarding the operations and assets of the
company's subsidiaries located in China. ShengdaTech filed for
chapter 11 protection in August after a special committee of the
company's board of directors also removed from office each officer
of ShengdaTech and its wholly-owned subsidiary Faith Bloom Limited
as a result of an on-going investigation "of issues identified by
KPMG arising out of its audit for the year ended Dec. 31, 2010."
According to the Chapter11Cases.com, shortly after the bankruptcy
filing, the company filed a declaration by Sheldon B. Saidman, an
independent member of ShengdaTech's board of directors and a
member of its audit committee and the above-referenced special
committee, which detailed the findings to date of the
investigation and the allegations that led the special committee
to remove the company's officers and authorize the bankruptcy
filing. Among the disclosures in that declaration, Mr. Saidman
reported that the special committee's investigation has "been
thwarted by former management of the Debtor and obstructed by
former management including the Debtor's former President and
Chief Executive Officer and largest shareholder, Xiangzhi Chen,
making the Special Committee's work incomplete."
On Friday, according to Chapter11Cases.com, ShengdaTech filed a
declaration by Michael Kang, who is a managing director of Alvarez
& Marsal and the chief restructuring officer of ShengdaTech. In
his declaration, Mr. Kang reports that he "recently visited China,
with other officers of the Debtor and certain of the Debtor's
professionals, in an attempt to gather more information about the
Non-Debtor Affiliates." During that trip, they visited
ShengdaTech's operating subsidiaries in China and "among other
things, requested financial information and asked questions
regarding the value, operations and profitability of the PRC
Companies." Those requests were denied, according to Mr.Kang. He
states that the "plant managers at these locations refused to
provide financial information and refused to answer any questions
relating to the financial condition of the PRC Operating
Subsidiaries" and, further, that ShengdaTech's subsidiaries in
China are "currently acting outside of the control of the Debtor,"
according to Chapter11Cases.com. Finally, Mr. Kang disclosed that
the company still has "limited access to its books and records,
limited access to Faith Bloom's books and records and no access to
the PRC Subsidiaries' current books and records.
The continuing issues in gathering information regarding the
company's subsidiaries, including $180 million in cash which the
companies held at the end of 2010 (ShengdaTech currently has only
$13 million of the cash under its control), resulted in two
motions filed by ShengdaTech on Friday. According to
Chapter11Cases.com, in the first motion, ShengdaTech asked the
bankruptcy court to modify the reporting requirements of
Bankruptcy Rule 2015.3 to exempt it from filing periodic reports
on the value, operations, and profitability of its subsidiaries.
In the second motion, the company requested authority to serve
subpoenas upon certain banks and to examine a representative from
each of the banks. The motion also asked the bankruptcy court to
direct the banks to produce "any and all documents, records,
account statements, communications and other information, as set
forth in the subpoena, relating to" certain bank accounts. The
banks covered by the discovery motion are banks at which
ShengdaTech's PRC subsidiaries and Faith Bloom had accounts as of
the bankruptcy filing and include the Bank of China, the
Industrial and Commercial Bank of China, the Bank of
Communications, China Merchants Bank, and the Agricultural Bank of
China. The motion states that ShengdaTech "does not intend to
take the cash to the detriment of the operations of the PRC
Subsidiaries," but "is concerned that the legal representatives
and/or prior management of the Debtor may have already improperly
transferred the cash or may be using the cash in the Bank Accounts
for improper purposes."
Finally, on Friday the Official Committee of Unsecured Creditors
appointed in the bankruptcy case filed its own motion with the
bankruptcy court, Chapter11Cases.com reports. Noting that the
bankruptcy will "be about taking control of the stock of the
Debtor's subsidiaries, and then forging a recovery from the
Chinese operations," the Committee asserts that "it is very
important that those in China understand that the Committee does
in fact speak for the creditors of the estate." In order to
further that goal, the Committee argues that its membership should
consist "of as many of the Debtor's engaged creditors as
reasonably possible" and "of many well-known investors in the
Asian markets with significant stake-holdings in claims against
the estate." To achieve these goals, the motion asks the
bankruptcy court to appoint three additional creditors to the
Committee:
* Advent Capital Management LLC
* CQS Asia Master Fund Limited
* Daiwa Capital Markets America, Inc.
Collectively, the three proposed new members hold approximately
$20 million in face amount of ShengdaTech's unsecured 6% notes due
June 2018 and 6.5% notes due December 2015.
About ShengdaTech
Headquartered in Shanghai, China, ShengdaTech, Inc., 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.
ShengdaTech sought Chapter 11 bankruptcy protection from creditors
(Bankr. D. Nev. Case No. 11-52649) on Aug. 19, 2011, in Reno,
Nevada, in the United States.
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 US$295.4 million in assets and US$180.9
million in debt as of Sept. 30, 2011.
The Company's legal representative in its Chapter 11 case is
Greenberg Traurig, LLP. On Aug. 23, 2011, the Court entered an
interim order confirming the Board of Directors Special
Committee's appointment of Michael Kang as the Debtor's chief
restructuring officer.
Alvarez & Marsal North America, LLC, is the Company's chief
restructuring officer.
As reported in the TCR on Sept. 7, 2011, the United States Trustee
appointed AG Ofcon, LLC, The Bank of New York, Mellon (in its role
as indenture trustee for bondholders), and Zazove Associates, LLC,
to serve on the Official Committee of Unsecured Creditors of
ShengdaTech, Inc.
SHENGDATECH INC: Files Schedules of Assets and Liabilities
----------------------------------------------------------
Shengdatech, Inc., filed with the U.S. Bankruptcy Court for the
District of Nevada its schedules of assets and liabilities,
disclosing:
Name of Schedule Assets Liabilities
---------------- ----------- -----------
A. Real Property $0
B. Personal Property $13,852,482+
Undetermined
C. Property Claimed as
Exempt
D. Creditors Holding
Secured Claims $0
E. Creditors Holding
Unsecured Priority
Claims $0
F. Creditors Holding
Unsecured Non-priority
Claims $164,184,811+
Undetermined
----------- -----------
TOTAL $13,852,482 $164,184,811+
Undetermined Undetermined
About ShengdaTech
Headquartered in Shanghai, China, ShengdaTech, Inc., 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.
ShengdaTech sought Chapter 11 bankruptcy protection from creditors
(Bankr. D. Nev. Case No. 11-52649) on Aug. 19, 2011, in Reno,
Nevada, in the United States.
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 US$295.4 million in assets and US$180.9
million in debt as of Sept. 30, 2011.
The Company's legal representative in its Chapter 11 case is
Greenberg Traurig, LLP. On Aug. 23, 2011, the Court entered an
interim order confirming the Board of Directors Special
Committee's appointment of Michael Kang as the Debtor's chief
restructuring officer.
Alvarez & Marsal North America, LLC, is the Company's chief
restructuring officer.
SOLYNDRA LLC: No Longer Threatened With Quick Liquidation
---------------------------------------------------------
Bill Rochelle, the bankruptcy columnist for Bloomberg News,
reports that Solyndra LLC is no longer faced with having its
bankruptcy reorganization converted to a liquidation under the
aegis of a trustee appointed in Chapter 7. The U.S. Trustee, who
initially sought either the appointment of a Chapter 11 trustee or
conversion of the case to Chapter 7, dropped the idea of having
the case converted immediately to liquidation to Chapter 7,
according to an Oct. 7 filing in U.S. Bankruptcy Court in
Delaware.
The U.S. Trustee, according to the report, will go ahead at the
Oct. 17 hearing with her request for a trustee in Chapter 11 who
would oust management while the quest for reorganization
continues. The Justice Department's bankruptcy watchdog sought a
Chapter 11 trustee a week after top company executives invoked
their Fifth Amendment rights and refused to answer questions posed
by a Congressional committee.
The report relates that if the bankruptcy judge concludes that a
Chapter 11 trustee isn't necessary, she is required by bankruptcy
law to appoint an examiner. Mr. Rochelle says a bankruptcy judge
can control the scope of an investigation by an examiner by
imposing a small budget or requiring a report to be filed quickly.
About Solyndra LLC
Founded in 2005, Solyndra LLC 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.
Fremont, California-based Solyndra and affiliate 360 Degree Solar
Holdings Inc. sought Chapter 11 bankruptcy protection (Bankr. D.
Del. Lead Case No. 11-12799) on Sept. 6, 2011. Solyndra is at
least the third solar company to seek court protection from
creditors since August 2011.
Solyndra 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.
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.
Judge Mary F. Walrath presides over the Debtors' cases. The
Debtors are represented by Pachulski Stang Ziehl & Jones LLP as
legal adviser. AlixPartners LLP serves as noticing claims and
balloting agent. Imperial Capital LLC serves as the company's
investment banker and financial adviser. The Debtors also tapped
former Massachusetts Governor William F. Weld, now with the law
firm McDermott Will & Emery, to represent the company in
government investigations and related litigation.
Roberta A. DeAngelis, U.S. Trustee for Region 3, appointed seven
unsecured creditors to serve on the Official Committee of
Unsecured Creditors of Solyndra LLC.
SOLYNDRA LLC: White House Sends Solyndra E-mails to Congress
------------------------------------------------------------
American Bankruptcy Institute reports that the White House, under
fire over loan guarantees to a solar energy company that filed for
bankruptcy, sent 2,000 pages of e-mail communication to Capitol
Hill on Friday.
About Solyndra LLC
Founded in 2005, Solyndra LLC 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.
Fremont, California-based Solyndra and affiliate 360 Degree Solar
Holdings Inc. sought Chapter 11 bankruptcy protection (Bankr. D.
Del. Lead Case No. 11-12799) on Sept. 6, 2011. Solyndra is at
least the third solar company to seek court protection from
creditors since August 2011.
Solyndra 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.
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.
Judge Mary F. Walrath presides over the Debtors' cases. The
Debtors are represented by Pachulski Stang Ziehl & Jones LLP as
legal adviser. AlixPartners LLP serves as noticing claims and
balloting agent. Imperial Capital LLC serves as the company's
investment banker and financial adviser. The Debtors also tapped
former Massachusetts Governor William F. Weld, now with the law
firm McDermott Will & Emery, to represent the company in
government investigations and related litigation.
Roberta A. DeAngelis, U.S. Trustee for Region 3, appointed seven
unsecured creditors to serve on the Official Committee of
Unsecured Creditors of Solyndra LLC.
SOLYNDRA LLC: Bankruptcy Cues DOE Executive to Resign
-----------------------------------------------------
Jhoanna Frances S. Valdez at EcoSeed reports that the United
States Department of Energy's Loan Programs Office executive
director Jonathan Silver resigned from his post, with critics
saying his resignation was related to the controversial Chapter 11
bankruptcy of solar start-up Solyndra LLC which his office
provided with a $535-million loan guarantee in 2009, sparking
questions on whether the department has mishandled the use of
stimulus funds and was not following protocol when they had given
out the loan.
According to the report, Mr. Silver resigned to take up the
visiting distinguished senior fellow post in political think tank
Third Way, where he will be working to expand its clean energy
team's innovation projects.
The report says the Republican-led House of Representatives,
which is conducting an investigation to the Solyndra case and
continuously looking to put the blame on the D.O.E. and the White
House Office of Management and Budget and which has found e-mails
between the parties involved which express concern about the
financial stability of Solyndra, was dismayed by this development,
saying that the move will not advance them any further to
resolving the issue.
"Mr. Silver's resignation does not solve the problem. We are in
the midst of the Solyndra investigation and just days removed from
Mr. Silver's mad rush to finalize the last $4.7 billion in loans
before the statutory deadline," the report quotes House committee
on energy and commerce Fred Upton as stating.
About Solyndra LLC
Founded in 2005, Solyndra LLC 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.
Fremont, California-based Solyndra and affiliate 360 Degree Solar
Holdings Inc. sought Chapter 11 bankruptcy protection (Bankr. D.
Del. Lead Case No. 11-12799) on Sept. 6, 2011. Solyndra is at
least the third solar company to seek court protection from
creditors since August 2011.
Solyndra 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.
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.
Judge Mary F. Walrath presides over the Debtors' cases. The
Debtors are represented by Pachulski Stang Ziehl & Jones LLP as
legal adviser. AlixPartners LLP serves as noticing claims and
balloting agent. Imperial Capital LLC serves as the company's
investment banker and financial adviser. The Debtors also tapped
former Massachusetts Governor William F. Weld, now with the law
firm McDermott Will & Emery, to represent the company in
government investigations and related litigation.
Roberta A. DeAngelis, U.S. Trustee for Region 3, appointed seven
unsecured creditors to serve on the Official Committee of
Unsecured Creditors of Solyndra LLC.
SPECTRAWATT INC: Judge OKs Canadian Solar to Acquire Assets
-----------------------------------------------------------
Dow Jones' DBR Small Cap reports that a bankruptcy judge approved
Canadian Solar Inc.'s top auction bid for solar panel manufacturer
SpectraWatt Inc.'s production assets, clearing the way for the
$4.9 million deal that will lead SpectraWatt's upstate New York
factory to be dismantled within months.
About SpectraWatt Inc.
Based in Hopewell Junction, New York, SpectraWatt Inc. was spun
off from Intel in June 2008 and raised $50 million through a sale
of preferred stock to its former parent and other investors
including Goldman Sachs Group Inc.'s Cogentrix Energy LLC, PCG
Clean Energy and Berlin-based solar panel maker Solon SE. The
Company has also issued about $36.7 million in senior secured
convertible notes.
The Company has a manufacturing facility in Hopewell Junction
designed to generate over 200 megawatts of production per year.
The plant began operations in January 2010 with an initial
capacity of only 30 megawatts per year.
The Company began winding down its affairs late last year after
encountering setbacks and shut down the lone manufacturing
facility in March, and fired all its workers.
SpectraWatt filed a Chapter 11 petition (Bankr. S.D.N.Y. Case No.
11-37366) on Aug. 19, 2011, in Poughkeepsie, New York.
SpectraWatt estimated as much as $50 million in both debt and
assets as of the Chapter 11 filing.
Mark W. Wege, Esq., and Scott Davidson, Esq., at King & Spalding
LLP, in Houston, Texas, is the proposed counsel for the Debtor.
SPECTRAWATT INC: Court Sets Nov. 22 as Claims Bar Date
------------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of New York
set Nov. 22, 2011, as deadline for creditors of SpectraWatt Inc.
to file proof of claims.
About SpectraWatt
Based in Hopewell Junction, New York, SpectraWatt Inc. was spun
off from Intel in June 2008 and raised $50 million through a sale
of preferred stock to its former parent and other investors
including Goldman Sachs Group Inc.'s Cogentrix Energy LLC, PCG
Clean Energy and Berlin-based solar panel maker Solon SE. The
Company has also issued about $36.7 million in senior secured
convertible notes.
The Company has a manufacturing facility in Hopewell Junction
designed to generate over 200 megawatts of production per year.
The plant began operations in January 2010 with an initial
capacity of only 30 megawatts per year.
The Company began winding down its affairs late last year after
encountering setbacks and shut down the lone manufacturing
facility in March, and fired all its workers.
SpectraWatt filed a Chapter 11 petition (Bankr. S.D.N.Y. Case No.
11-37366) on Aug. 19, 2011, in Poughkeepsie, New York.
SpectraWatt estimated as much as $50 million in both debt and
assets as of the Chapter 11 filing.
Mark W. Wege, Esq., and Scott Davidson, Esq., at King & Spalding
LLP, in Houston, Texas, is the proposed counsel for the Debtor.
SPRINT NEXTEL: S&P Puts 'BB-' Corp. Credit Rating on Watch Neg.
---------------------------------------------------------------
Standard & Poor's Ratings Services placed its 'BB-' corporate
credit rating on Overland Park, Kan.-based wireless carrier Sprint
Nextel Corp., as well as all related issue-level ratings, on
CreditWatch with negative implications. "This indicates that we
could either lower or affirm the ratings following the completion
of our review," S&P said.
"The CreditWatch listing follows the company's investor conference
last Friday," said Standard & Poor's credit analyst Allyn Arden,
"and is due to a combination of factors that we believe could lead
to deterioration in key credit measures over the couple of years."
Such factors include:
Significant capital spending requirements to support the
company's network upgrade project.
"Our expectation for additional debt financing to support the
network upgrade, which could lead to an increase in operating
lease-adjusted debt to EBITDA, which stood at 4.6x as of June
30, 2011," S&P said.
"Our expectation for negative free operating cash flow (FOCF)
in 2012 and 2013," S&P said.
Ongoing weak profitability, including a sharp 12.5% decline in
EBITDA in the second quarter of 2011, year over year.
Additionally, wireless EBITDA margins of about 16% are
substantially lower than those of its peer group.
"The addition of the iPhone to Sprint Nextel's device
portfolio will likely result in incremental margin pressure
over the next year or two, as well as a short-term
deterioration of FOCF beyond our current expectations," S&P
related.
Uncertainty regarding its long-term relationship with
majority-owned wholesale partner Clearwire Corp.
(CCC+/Negative/--). While Sprint Nextel indicated that it is
committed to selling Clearwire's WiMax devices through 2012,
it is unclear if it will extend its relationship beyond then.
"We believe Clearwire could run out of cash in mid-2012," S&P
said.
"We recognize that the network upgrade could help Sprint
substantially improve its margins, although this may take a few
years or more to arrive," added Mr. Arden, "and that the addition
of the iPhone could lead to longer term customer retention and
profitability benefits." "At the same time, while Sprint Nextel
has made progress in improving operating trends, including lower
post-paid subscriber losses and reduced levels of churn, we
believe the company may be challenged to maintain positive
operating momentum as industry conditions mature and competition
intensifies, most notably from better capitalized AT&T Inc. and
Verizon Communications Inc."
"We expect to complete our CreditWatch review on Sprint Nextel in
the next 90 days. We will assess the impact of the company's
various initiatives as well as the evolving industry environment
on our business risk assessment, which is currently 'fair'. For
our financial risk assessment, currently 'aggressive', we will
evaluate a number of factors, including the company's ability to
maintain operating lease-adjusted debt to EBITDA below 5x over the
longer term, as well as the duration and severity of any interim
period of higher leverage and negative FOCF," S&P said.
TEGRANT CORP: S&P Puts 'CCC+' CCR on Watch Positive
---------------------------------------------------
Standard & Poor's Ratings Services revised its outlook on U.S.-
based packaging producer Sonoco Products Co. to stable from
positive. "At the same time, Standard & Poor's affirmed its
ratings, including its 'BBB+' corporate credit rating, on the
packaging producer," S&P said.
These actions follow the announcement by Sonoco Products that it
has signed a definitive agreement to acquire Tegrant Corp. for
approximately $550 million, which Sonoco expects to finance with
new debt issuances. The companies expect the acquisition to close
in November 2011 if it obtains all necessary regulatory approval.
"The increase in Sonoco's debt for the proposed transaction likely
will limit prospects for an upgrade during the next one to two
years," said Standard & Poor's credit analyst Liley Mehta.
"However, we do not believe that the increased debt will stretch
Sonoco's financial profile beyond a level consistent with the
current ratings, particularly given Sonoco's financial policy
objectives, which include strengthening the balance sheet."
Standard & Poor's also placed its ratings, including the 'CCC+'
corporate credit rating, on Tegrant Corp. on CreditWatch with
positive implications. If the transaction closes as proposed,
Standard & Poor's would expect to raise and then withdraw all of
the ratings on Tegrant.
Dekalb, Ill.-based Tegrant is a leading manufacturer and designer
of protective, temperature-assurance, and retail packaging
products for primarily North American markets with annual sales of
more than $425 million (pro forma for its acquisition of Createc
Corp. in January 2011). This includes molded foam components for
the automotive and building products industries, temperature-
controlled transport products for the health care and food service
industries, and thermoformed packages and packaging machines for
consumer-related markets.
With annual sales of $4.4 billion, Sonoco has a leading position
in paperboard tubes and cores and other paperboard packaging
products serving both industrial and consumer markets. "We
characterize Sonoco's business risk profile as strong and its
financial risk profile as intermediate," Ms. Mehta said.
The Tegrant acquisition will expand Sonoco's presence in
protective packaging. Because Tegrant has primarily domestic
operations, the combined protective packaging operations are
likely to benefit from Sonoco's international footprint and
infrastructure in emerging markets with further penetration into
markets in Europe, Asia, and South America. Sonoco also expects to
realize about $11 million in synergies as a result of cost
reductions between the two operations.
THIRD STREET: Files for Chapter 11 Bankruptcy Protection
--------------------------------------------------------
Vanessa Small at the Washington Post reports that Third Street LLC
at 7701 Brink Road in Gaithersburg, Maryland, filed for Chapter 11
protection in the U.S. Bankruptcy Court for the District of
Maryland (Case No. 11-29817) on Oct. 4, 2011. The Company
estimated both assets and debts of $500,000 to $1 million. The
Company owes $40,000 to its unsecured creditor, Joseph Prochaska.
Richard Rosenblatt represents the Company as its attorney.
TOWN CENTER AT DORAL: Files Schedules of Assets and Liabilities
---------------------------------------------------------------
Town Center at Doral LLC filed with the Bankruptcy Court for the
Southern District of Florida its schedules of assets and
liabilities, disclosing:
Name of Schedule Assets Liabilities
---------------- ----------- -----------
A. Real Property $24,297,300
B. Personal Property $5,000,000
C. Property Claimed as
Exempt
D. Creditors Holding
Secured Claims $148,569,969
E. Creditors Holding
Unsecured Priority
Claims $0
F. Creditors Holding
Unsecured Non-priority
Claims $17,536,201
----------- ------------
TOTAL $29,297,300 $166,133,171
Town Center at Doral LLC, Landmark at Doral East LLC, Landmark at
Doral South LLC, Landmark Club at Doral LLC and Landmark at Doral
Developers LLC, companies associated with the aborted Landmark at
Doral development, filed for Chapter 11 bankruptcy (Bankr. S.D.
Fla. Case Nos. 11-35884 to 11-35888) on Sept. 19, 2011, almost
three years after AmTrust Bank sought to foreclose on the project.
The companies estimated assets of $1 million to $10 million and
liabilities from $100 million to $500 million. Isaac Kodsi signed
the petitions as vice president.
Mindy A. Mora, Esq., at Bilzin Sumberg Baena Price & Axelrod, LLP
in Miami serves as counsel to the Debtors.
Cleveland, Ohio-based AmTrust filed for foreclosure in October
2008 based on the $124.4 million in mortgages that were granted
the developer in 2005. Several projects started by EB Developers
fell into foreclosure after owner and CEO Elie Berdugo died in
February 2008.
TOWN CENTER AT DORAL: Section 341(a) Meeting Scheduled for Oct. 21
------------------------------------------------------------------
The U.S. Trustee for Region 21 will convene a meeting of creditors
of Town Center at Doral, LLC on Oct. 21, 2011, at 1:30 p.m. The
meeting will be held at Claude Pepper Federal Bldg, 51 SW First
Ave Room 1021, Miami, Florida.
Creditors are requested to file their proof of claim by Jan. 19,
2012, for non-governmental units and March 19, 2012, for
governmental units.
This is the first meeting of creditors required under Section
341(a) of the Bankruptcy Code in all bankruptcy cases.
All creditors are invited, but not required, to attend. This
Meeting of Creditors offers the one opportunity in a bankruptcy
proceeding for creditors to question a responsible office of the
Debtor under oath about the company's financial affairs and
operations that would be of interest to the general body of
creditors.
Town Center at Doral LLC, Landmark at Doral East LLC, Landmark at
Doral South LLC, Landmark Club at Doral LLC and Landmark at Doral
Developers LLC, companies associated with the aborted Landmark at
Doral development, filed for Chapter 11 bankruptcy (Bankr. S.D.
Fla. Case Nos. 11-35884 to 11-35888) on Sept. 19, 2011, almost
three years after AmTrust Bank sought to foreclose on the project.
Town Center at Doral scheduled assets of $29,297,300 and
liabilities of $166,133,171. Isaac Kodsi signed the petitions as
vice president.
Mindy A. Mora, Esq., at Bilzin Sumberg Baena Price & Axelrod, LLP
in Miami serves as counsel to the Debtors.
Cleveland, Ohio-based AmTrust filed for foreclosure in October
2008 based on the $124.4 million in mortgages that were granted
the developer in 2005. Several projects started by EB Developers
fell into foreclosure after owner and CEO Elie Berdugo died in
February 2008.
TOWN CENTER AT DORAL: Hires Bilzin Sumberg as Bankruptcy Counsel
----------------------------------------------------------------
Town Center at Doral LLC and its affiliated debtors ask permission
from the U.S. Bankruptcy Court for the Southern District of
Florida to employ Mindy A. Mora and the law firm of Bilzin Sumberg
Baena Price & Axelrod LLP as bankruptcy counsel.
Upon retention, the firm will, among other things:
a) advise the Debtors with respect to their powers and duties
as debtors and debtors-in-possession in the continued
management and operation of their businesses and property;
b) attend meetings and negotiate with representatives of
creditors and other parties-in-interest; and
c) advise and consult on the conduct of these chapter 11 cases,
including all of the legal and administrative requirements
of operating in chapter 11.
The firm's rates are:
Personnel Rates
--------- -----
Partners $445 - $700
Of Counsel $425 - $550
Associates $225 - $435
Paraprofessionals $205 - $225
Project Assistants $200
Mindy A. Mora, Esq., a restructuring and bankruptcy attorney at
Bilzin Sumberg, attests that the law firm does not hold or
represent any interest adverse to the Debtors.
About Town Center at Doral
Town Center at Doral LLC, Landmark at Doral East LLC, Landmark at
Doral South LLC, Landmark Club at Doral LLC and Landmark at Doral
Developers LLC, companies associated with the aborted Landmark at
Doral development, filed for Chapter 11 bankruptcy (Bankr. S.D.
Fla. Case Nos. 11-35884 to 11-35888) on Sept. 19, 2011, almost
three years after AmTrust Bank sought to foreclose on the project.
Town Center at Doral scheduled assets of $29,297,300 and
liabilities of $166,133,171. Isaac Kodsi signed the petitions as
vice president.
Mindy A. Mora, Esq., at Bilzin Sumberg Baena Price & Axelrod, LLP
in Miami serves as counsel to the Debtors.
Cleveland, Ohio-based AmTrust filed for foreclosure in October
2008 based on the $124.4 million in mortgages that were granted
the developer in 2005. Several projects started by EB Developers
fell into foreclosure after owner and CEO Elie Berdugo died in
February 2008.
TRANSWEST RESORT: To Seek Plan Confirmation on Monday
-----------------------------------------------------
Transwest Resort Properties, Inc., will seek confirmation at a
hearing Monday, Oct. 17, for the its reorganization plan dated
Sept. 14, 2011.
In conjunction with confirmation of the Plan, WTW Hotel Venture
L.L.C., a newly formed holding company that will be fully
capitalized and wholly owned by West Partners Real Estate, will
invest $30.0 million in new capital in the Reorganized Debtors.
The capital infusion in the Reorganized Debtors, together with the
cash held by the Debtors on the Effective Date and additional
funds that they expect to receive in connection with negotiating
new management agreements for the Resorts, will be used to fund
approximately $14.5 million in improvements to the Resorts,
establish reserve accounts and make certain payments under the
Plan, including distributions to unsecured creditors that would
not be available in a liquidation of the Debtors.
Following the Effective Date, the Reorganized Debtors will
continue to own the Resorts. The Reorganized Debtors will use the
income and proceeds derived from operation of the Resorts to fund
the obligations under the Plan. Importantly, the Reorganized
Debtors will reserve 6% of gross operating revenue expressly for
purposes of making capital improvements.
To implement the Plan and improve the profitability of the
resorts, the current Management Agreements with Starwood will be
rejected under the Plan, and the Reorganized Debtors will enter
into new management agreements that may provide for a substantial
initial cash payment to the Reorganized Debtors and more favorable
economic terms for the management of the Resorts. The Debtors
are currently negotiating the terms of new management agreements
with Starwood and Hyatt Corporation. The Debtors have already
received viable term sheets from both Starwood and Hyatt for new
management agreements for the Resorts. These proposals include a
reduction of the maximum base management fees for the Resorts,
provide for a cash payment of Key Money of up to $5.0 million, and
will require the Operating Debtors to undertake capital and
property improvement plans for the Resorts during the initial
years following confirmation of the Plan.
Under the Plan, Administrative Claims, Priority Tax Claims, and
Priority Unsecured Claims will be paid in full. The Mortgage Loan
secured by the Resorts will be restructured in a manner that,
based on the current and projected future performance of the
Resorts, will permit the Reorganized Debtors to satisfy the
Allowed Senior Lender Secured Claim, thereby generating a
significant recovery for the Senior Lender. The Senior Lender may
elect to receive alternative treatment of the claim. In either
case, the Debtors believe that, based on the Projections, the
Reorganized Debtors will have more than adequate resources to
satisfy the Allowed Senior Lender Secured Claim. The Secured
Claims of EZ Trader LLC and GE Capital/GE Capital Solutions will
also be restructured in a manner that will allow them to receive a
full recovery on account of their Allowed Secured Claims.
The claims of Unsecured Creditors will be subject to alternative
treatment based on a variety of factors. Unsecured claims that
are allowed in an amount less than $5,000, will receive a cash
payment equal to the lesser of the amount of the allowed claim or
$5,000. In the alternative, unsecured trade creditors of the
Operating Debtors will receive 40% of their allowed unsecured
trade claims over a four-year period. Other Unsecured Creditors,
including the Senior Lender and holders of rejection damage
claims, will be eligible to receive a cash payment equal to a pro
rata share of the Unsecured Creditor Fund, which will be funded in
the amount of $2.0 million from the capital infusion in the
reorganized debtors in connection with the Plan, and a Class 6
membership appreciation and cash flow certificate that will
entitle the holder to a pro rata right to share in the cash flow,
and appreciation in the Reorganized Debtors' memberships equity
securities, if certain conditions are met.
Similarly, the holders of allowed claims arising from the
Mezzanine Loan may be entitled to receive a cash payment of
$250,000 and a Class 7 junior membership appreciation and cash
flow certificate entitling the holder to a share in the cash flow
generated by the Reorganized Debtors following confirmation of the
Plan, and payment on appreciation in value of the equity interests
in the Reorganized Debtors.
Thus, under the Plan, unsecured creditors and the holders of
claims arising from the Mezzanine Loan will be eligible to receive
cash payments and potentially receive a recovery based on the
appreciation in value of the equity interests in the Reorganized
Debtors. In a liquidation of the Debtors, it is unlikely that
unsecured creditors or the holders of claims arising from the
Mezzanine Loan would receive any meaningful distributions from the
estates or value on account of their Claims, and would not receive
the recoveries that are presented under the Plan.
Finally, the holders of Penalty Claims against any Debtor, the
holders of equity interests in the Debtors, and the holders of
subject insider claims will receive no distribution under the
Plan.
A copy of the Disclosure Statement is available for free at:
http://bankrupt.com/misc/TRANSWEST_amendeddisclosurestatement.pdf
About Transwest Resort
Tucson, Arizona-based Transwest Resort Properties, Inc., filed for
Chapter 11 bankruptcy protection (Bankr. D. Ariz. Case No. 10-
37134) on Nov. 17, 2010. Kasey C. Nye, Esq., and Elizabeth S.
Fella, Esq., at Quarles & Brady LLP, in Tucson, Ariz., assist the
Debtor in its restructuring effort. The Debtor estimated its
assets at up to $50,000 and debts at $10 million to $50 million.
Affiliates Transwest Hilton Head Property, L.L.C. (Bankr. D. Ariz.
Case No. 10-37170), Transwest Tucson Property, L.L.C. (Bankr. D.
Ariz. Case No. 10-37160), Transwest Tucson II, L.L.C. (Bankr. D.
Ariz. Case No. 10-37151), and Transwest Hilton Head II, L.L.C.
(Bankr. D. Ariz. Case No. 10-37145) filed separate Chapter 11
petitions on Nov. 17, 2010. BeachFleischman PC serves as tax
preparer and advisor, accountant and auditor. Hundley & Company,
LLC, serves as financial restructuring and interest rate experts,
and Hospitality Real Estate Counselors as valuation consultant and
expert. Transwest Hilton Head Property estimated assets at
$10 million to $50 million and debts at $100 million to
$500 million. Transwest Tucson Property estimated assets at
$50 million to $100 million and debts at $100 million to
$500 million.
The U.S. Trustee appointed an Official Committee of Unsecured
Creditors on Dec. 15, 2010.
TRIPLE POINT: S&P Affirms 'B' Corporate Credit Rating
-----------------------------------------------------
Standard & Poor's Ratings Services affirmed its 'B' corporate
credit rating on Westport, Conn.-based Triple Point Technology
Inc., a U.S. provider of enterprise software solutions for trading
and risk management of commodities. The outlook is stable.
"At the same time, we assigned a preliminary 'B' rating to the
company's $20 million senior secured revolving credit facility
(RCF) due 2016, $185 million term loan B due 2017, and $50 million
delayed-draw term loan exercisable until Feb. 29, 2012. The
recovery rating on the debt is '3', indicating our expectation for
a meaningful recovery (50% to 70%) in the event of a payment
default," S&P said.
"The rating reflects Triple Point's narrow market focus, limited
track record operating at current levels, leveraged financial
profile, and private-equity ownership structure, which is likely
to preclude sustained deleveraging," said Standard & Poor's credit
analyst William Backus. "The company's relatively high recurring
revenue base and solid profit margins partly offset those
factors," he added.
Triple Point provides enterprise software for the Energy Trading
and Risk Management (ETRM) market and the broader Commodity
Management (CM) market. The company's software provides end-to-end
solutions in the procurement, monitoring, processing,
transporting, selling, and risk management of a wide range of
commodities, including oil, gas, coal, metals, biofuels, freight,
and agricultural products.
UNITED CONTINENTAL: S&P Affirms 'B' Corporate Credit Rating
-----------------------------------------------------------
Standard & Poor's Ratings Services affirmed its corporate credit
ratings (CCRs) on Chicago-based United Continental Holdings Inc.
(UCHI) and its subsidiaries, United Air Lines Inc. (United) and
Continental Airlines Inc. (Continental). "We also raised our
ratings on the company's senior unsecured and second-lien debt
to 'B-' from 'CCC+', and raised our recovery ratings on those
issues to '5' from '6'. At the same time, we affirmed our ratings
on the company's other issue-level ratings, except for
Continental's 1997-4 class B pass-through certificates (which we
are upgraded to 'BB' from 'BB-') and 2009-1 class A pass-through
certificates (which we are downgraded to 'BBB+' from 'A-'). The
outlook is stable," S&P said.
"The affirmation of our CCRs on UCHI and subsidiaries United and
Continental is based on our expectation that UCHI will continue to
generate solid earnings and cash flow, aided over time by
synergies from the Oct. 1, 2010, merger, despite weakening
economic growth in the U.S. and abroad," said Standard & Poor's
credit analyst Philip Baggaley. "Our upgrade of the ratings on the
company's senior unsecured and second-lien issues reflects the
increasing enterprise value and modestly reduced debt levels used
in our simulated default scenario. The rating actions on the two
Continental pass-through certificates were driven by changes in
collateral coverage that were outside of our range of expectations
for the ratings. We estimate the loan-to-value for each these
securities, using base values, as currently in the 60% to 70%
range."
"Our CCRs on UCHI and its subsidiaries are based on the
consolidated credit profile of UCHI. Our ratings reflect UCHI's
highly leveraged financial profile and the risks associated with
participation in the volatile U.S. airline industry, as well as
our expectation that the acquisition and eventual full merger of
the two airline subsidiaries will, over time, generate material
synergies -- mostly higher revenues. We expect 2011 adjusted
EBITDA coverage of 2.3x to 2.4x and funds from operations (FFO) to
debt of 11% to 13%, with slightly better results in 2012. Under
our criteria, we categorize UCHI's business risk profile as
'weak,' its financial profile as 'highly leveraged,'
and its liquidity as 'adequate,'" S&P stated.
"Earnings performance since the merger has been one of the
stronger among U.S. airlines, with net profit of $538 million in
the second quarter, and we expect even stronger third-quarter
earnings. The combination of United and Continental created the
largest U.S. airline, with a broad and diversified route network.
UCHI is making progress on merger integration, though it has
not yet been able to sign new joint labor contracts to cover
United and Continental employees. Permission from the Federal
Aviation Administration (FAA) to operate United and Continental as
a single airline (which the company expects by the end of this
year), joint labor contracts with the various employee groups
(which we believe will likely take longer), and ongoing investment
in merged information technology and aircraft fleet are
preconditions to fully capturing merger synergies. Of these,
merging certain information technology systems and receiving FAA
permission to operate as a single airline provide the greatest
immediate benefit, which should drive significantly increased
synergies in 2012. UCHI expects that it will labor contracts, and
we see greater-than-planned labor costs as the principal risk
associated with the merger," S&P related.
Year-over-year comparisons and adjusted credit measures based on
trailing-12-month results are distorted by the fact that UCHI's
historical reported results include Continental only from Oct. 1,
2010. Thus, for example, adjusted FFO to debt of 9% for the 12
months through June 30, 2011, understates UCHI's performance,
because it includes only three quarters of Continental cash flow,
but all of Continental's debt. This will cease to be a concern
with the reporting of third-quarter 2011 results.
The outlook is stable. "We don't expect to change our CCRs on UCHI
or its subsidiaries over the next year," Mr. Baggaley continued.
"However, if strong earnings and faster-than-expected achievement
of merger synergies allows the consolidated entity to generate
adjusted FFO to debt consistently in the 15% to 20% range, we
could raise our ratings. On the other hand, if adverse industry
conditions, which could be triggered by a major double-dip
recession or much-worse-than anticipated merger integration
problems, cause financial results to deteriorate so that FFO to
debt falls into the mid-single-digit percentage area, we could
lower the ratings."
UNIVERSAL CITY: S&P Withdraws 'BB-' Corporate Credit Rating
-----------------------------------------------------------
Standard & Poor's Ratings Services withdrew its 'BB-' corporate
credit rating on Universal City Development Partners Ltd.
"At the same time, we raised the issue-level ratings on the
company's senior unsecured and subordinated debt to 'BBB+' from
'B'," S&P said
These actions follow the successful completion of a consent
solicitation by NBCUniversal Media LLC to fully and
unconditionally guarantee Universal's 8 7/8% senior notes due 2015
and its 10 7/8% senior subordinated notes due 2016 on a senior
unsecured basis. On July 1, NBCUniversal completed the acquisition
of a 50% equity interest in Universal City Development Partners
from affiliates of Blackstone Group L.P. Universal City
Development Partners Ltd., which owns and operates the Universal
theme park in Orlando, Florida, is now 100% owned by NBCUniversal
Media. NBCUniversal Media's senior unsecured issue-level rating is
'BBB+', reflecting its majority ownership by Comcast Corp.
(BBB+/Stable/A-2). "With the completion of the guarantee, we have
equalized the ratings of the debt issuances at Universal with
NBCUniversal's issue-level rating," S&P said.
WJO INC: Committee Wants Cash Collateral Stipulation Modified
-------------------------------------------------------------
The Official Committee of Unsecured Creditors in the Chapter 11
case of WJO, Inc., asks the U.S. Bankruptcy Court for the Eastern
District of Pennsylvania to require modifications of the cash
collateral stipulation to include the Committee's requests for:
-- proper documentation from Tristate Capital Bank and the
Debtor so that the Committee can conduct due diligence on the
Debtor and the underlying secured loans;
-- the budget to contain a crave out for the Committee's
professional fees which is needed to protect the right of
unsecured creditors; and
-- the budget to explain the discrepancy why the expenses for
utilities for the week of Oct. 3 are four time higher than the
other weeks.
According to the Troubled Company Reporter on July 1, 2011,
Tristate Capital holds a lien against the accounts, chattel
paper, documents, instruments, inventory, general intangibles,
equipment, fixtures, deposit accounts, goods, letter of credit
rights, supporting obligations, investment property, and
commercial tort claims of the Debtor in the amount of $4,000,000.
The Debtor proposed to provide adequate protection in the form of
a replacement lien to the extent Tristate has liens prepetition,
which are not subject to challenge and in the same extent,
priority and validity as existed prepetition.
The continued use of cash collateral, according to Thomas D.
Bielli, Esq., at Ciardi Ciardi & Astin, in Philadelphia,
Pennsylvania, will allow the Debtor to continue operating and
continue with its reorganization by proposing a plan to
restructure the existing debt to satisfy the creditors. In the
meantime, the Debtor believes the interest of Tristate is
adequately protected because Debtor's Cash Collateral Budget
proposes to pay Tristate each month, when due, from its
operations, Mr. Bielli said.
About WJO Inc.
Bristol, Pennsylvania-based WJO, Inc., operates six family
practices located in Newtown, Bristol, Bensalem, Bustleton, South
Philadelphia, and Bethlehem, Pennsylvania and consists of Board
Certified Osteopathic Physicians specializing in Family Medicine.
Prior to the petition date, and to allow the Company to
restructure effectively, HyperOx Inc., HyperOx I, LP, HyperOx
III, LP, and East Coast TMR, Inc., were merged into WJO.
WJO filed for Chapter 11 bankruptcy protection (Bankr. E.D. Pa.
Case No. 10-19894) on Nov. 15, 2010. The Debtor disclosed
$19,923,802 in assets and $6,805,255 in liabilities as of the
Chapter 11 filing.
Holly Elizabeth Smith, Esq., and Thomas Daniel Bielli, Esq., at
Ciardi Ciardi & Astin, P.C., serve as the Debtor's bankruptcy
counsel. Pond Lehocky Stern Giordano serves as the Debtor's
special counsel to represent it in worker's compensation
proceedings pertaining to the Therapeutic Magnetic Resonance
treatments.
Attorneys at Keifer & Tsarouhis LLP serve as counsel to the
official committee of unsecured creditors. ParenteBeard LLC
serves as the Committee's accountant and financial advisor.
The United States Trustee has appointed David Knowlton as patient
care ombudsman in the case. The Ombudsman is represented in the
case by Karen Lee Turner, Esq., at Eckert Seamans Cherin &
Mellott, LLC, as counsel.
Tristate Capital Bank, the cash collateral lender, is represented
in the case by lawyers at Benesch Friedlander Coplan & Aronoff
LLP.
WJO INC: Tristate, Committee Wants Exclusivity Extension Denied
----------------------------------------------------------------
Tristate Capital Bank and the Official Committee of Unsecured
Creditors in the Chapter 11 case of WJO, Inc., ask the U.S.
Bankruptcy Court for the Eastern District of Pennsylvania to deny
the Debtor's request for exclusivity extensions.
The Debtor requested that the Court extend, for the third time,
its exclusive periods to file and solicit acceptances for the
proposed Chapter 11 Plan until Nov. 30, 2011, and Dec. 30,
respectively.
In its motion, the Debtor explained that it needed additional time
to (a) negotiate a consensual Plan with its creditors; and (b)
complete its business plan going forward as a reorganized company.
According to Tristate Capital, the Debtor has yet to provide
Tristate with a term sheet or a draft plan of reorganization as a
concrete evidence of its efforts and progress to structure a
proposed plan of reorganization.
Moreover, Tristate said that the Debtor has apparently been unable
to meet the requirements of its current cash collateral budget as
it has failed to make its most recent monthly payment.
Tristate reserves its right to raise any other and further
objections to the motion up to, and at the time of hearing on the
motion.
Tristate is represented by:
BENESCH, FRIEDLANDER, COPLAN & ARONOFF LLP
Jennifer R. Hoover, Esq.
One Liberty Place
1650 Market Street, Suite 3628
Philadelphia, PA 19103
Tel: (267) 207-2947
Fax: (267) 207-2949
E-mail: jhoover@beneschlaw.com
- and -
David M. Neumann, Esq.
200 Public Square, Suite 2300
Cleveland, OH 44114-2378
Tel: (216) 363-4500
Fax: (216) 363-4588
E-mail: dneumann@beneschlaw.com
In its objection, the Committee related that the Debtor has made
no progress in formulating Plan.
The Committee added that denying the Debtor's request for the
extension of exclusivity will force the Debtor to focus its
reorganization efforts and encourage a prompt resolution of the
case, which will result in a lower administrative costs and a
higher distribution to creditors.
The Committee is represented by:
Bruce Grohsgal, Esq.
Bradford J. Sandler, Esq.
Peter J. Keane, Esq.
PACHULSKI STANG ZIEHL & JONES LLP
919 North Market Street, 17th Floor
P.O. Box 8705
Wilmington, DE 19899-8705
Tel: (302) 652-4100
Fax: (302) 652-4400
E-mails: bgrohsgal@pszjlaw.com
bsandler@pszjlaw.com
pkeane@pszjlaw.com
About WJO Inc.
Bristol, Pennsylvania-based WJO, Inc., operates six family
practices located in Newtown, Bristol, Bensalem, Bustleton, South
Philadelphia, and Bethlehem, Pennsylvania and consists of Board
Certified Osteopathic Physicians specializing in Family Medicine.
Prior to the petition date, and to allow the Company to
restructure effectively, HyperOx Inc., HyperOx I, LP, HyperOx
III, LP, and East Coast TMR, Inc., were merged into WJO.
WJO filed for Chapter 11 bankruptcy protection (Bankr. E.D. Pa.
Case No. 10-19894) on Nov. 15, 2010. The Debtor disclosed
$19,923,802 in assets and $6,805,255 in liabilities as of the
Chapter 11 filing.
Holly Elizabeth Smith, Esq., and Thomas Daniel Bielli, Esq., at
Ciardi Ciardi & Astin, P.C., serve as the Debtor's bankruptcy
counsel. Pond Lehocky Stern Giordano serves as the Debtor's
special counsel to represent it in worker's compensation
proceedings pertaining to the Therapeutic Magnetic Resonance
treatments.
Attorneys at Keifer & Tsarouhis LLP serve as counsel to the
official committee of unsecured creditors. ParenteBeard LLC
serves as the Committee's accountant and financial advisor.
The United States Trustee has appointed David Knowlton as patient
care ombudsman in the case. The Ombudsman is represented in the
case by Karen Lee Turner, Esq., at Eckert Seamans Cherin &
Mellott, LLC, as counsel.
Tristate Capital Bank, the cash collateral lender, is represented
in the case by lawyers at Benesch Friedlander Coplan & Aronoff
LLP.
* Corporate Bankruptcy Filings Fall to Lowest Level Since 2008
--------------------------------------------------------------
American Bankruptcy Institute, citing newly released data from
Epiq Systems Inc., reports that new business bankruptcy filings
fell 10.7% in September compared to the prior month and settled at
their lowest level since June of 2008.
* Insured's Bankruptcy Doesn't Let Insurer Off the Hook
-------------------------------------------------------
Bill Rochelle, the bankruptcy columnist for Bloomberg News,
reports that Rhode Island public policy doesn't permit an
insurance company to escape liability as the consequence of the
bankruptcy of an insured, the U.S. Court of Appeals in Boston
ruled on Oct. 7.
Mr. Rochelle relates that the case involved a personal injury
lawsuit brought by owners of a mobile home where the manufacturer
went bankrupt. The manufacturer was self-insured for the first
$500,000 in damages. The insurance company covered claims above
$500,000 for each occurrence. The owners sued the insurance
company in federal court under diversity of jurisdiction. The
district court dismissed the suit, saying that the insurance
company had no liability because the bankrupt company hadn't paid
$500,000. The owners contended that their damages would be an
unspecified amount exceeding $500,000.
According to Mr. Rochelle, the 1st Circuit in Boston reversed,
although they found no cases on point from Rhode Island courts
interpreting state law. The Circuit Court analyzed analogous
Rhode Island law and concluded it would violate state public
policy to allow the insurance company to escape liability because
the bankrupt manufacturer wasn't in a position to pay $500,000.
The appeals court ruled that the lawsuit should survive, with the
insurance company liable for damages exceeding $500,000. The case
is Rosciti v. Insurance Co. of the State of Pennsylvania, 10-2087,
U.S. 1st Circuit Court of Appeals (Boston).
* Apollo Markets Latest European Nonperforming Loan Fund
--------------------------------------------------------
Dow Jones' Daily Bankruptcy Review reports that Apollo Global
Management is marketing its second fund targeting investments in
European nonperforming loans, according to prospective investors.
* H.I.G. Expands Credit Platform With WhiteHorse Purchase
---------------------------------------------------------
Dow Jones' Daily Bankruptcy Review reports that H.I.G. Capital
expanded its loan origination business, buying certain assets of
WhiteHorse Capital, a Dallas-based manager of collateralized loan
obligations, for an undisclosed sum.
* Upcoming Meetings, Conferences and Seminars
---------------------------------------------
Oct. 14, 2011
AMERICAN BANKRUPTCY INSTITUTE
NCBJ/ABI Educational Program
Tampa Convention Center, Tampa, Fla.
Contact: 1-703-739-0800; http://www.abiworld.org/
Oct. __, 2011
AMERICAN BANKRUPTCY INSTITUTE
International Insolvency Symposium
Dublin, Ireland
Contact: 1-703-739-0800; http://www.abiworld.org/
Oct. 25-27, 2011
TURNAROUND MANAGEMENT ASSOCIATION
Hilton San Diego Bayfront, San Diego, CA
Contact: http://www.turnaround.org/
Nov. 28, 2011
BEARD GROUP, INC.
18th Annual Distressed Investing Conference
The Helmsley Park Lane Hotel, New York City
Contact: 1-240-629-3300
Dec. 1-3, 2011
AMERICAN BANKRUPTCY INSTITUTE
23rd Annual Winter Leadership Conference
La Quinta Resort & Spa, La Quinta, Calif.
Contact: 1-703-739-0800; http://www.abiworld.org/
April 3-5, 2012
TURNAROUND MANAGEMENT ASSOCIATION
TMA Spring Conference
Grand Hyatt Atlanta, Atlanta, Ga.
Contact: http://www.turnaround.org/
Apr. 19-22, 2012
AMERICAN BANKRUPTCY INSTITUTE
Annual Spring Meeting
Gaylord National Resort & Convention Center,
National Harbor, Md.
Contact: 1-703-739-0800; http://www.abiworld.org/
July 14-17, 2012
AMERICAN BANKRUPTCY INSTITUTE
Southeast Bankruptcy Workshop
The Ritz-Carlton Amelia Island, Amelia Island, Fla.
Contact: 1-703-739-0800; http://www.abiworld.org/
Aug. 2-4, 2012
AMERICAN BANKRUPTCY INSTITUTE
Mid-Atlantic Bankruptcy Workshop
Hyatt Regency Chesapeake Bay, Cambridge, Md.
Contact: 1-703-739-0800; http://www.abiworld.org/
November 1-3, 2012
TURNAROUND MANAGEMENT ASSOCIATION
TMA Annual Convention
Westin Copley Place, Boston, Mass.
Contact: http://www.turnaround.org/
Nov. 29 - Dec. 2, 2012
AMERICAN BANKRUPTCY INSTITUTE
Winter Leadership Conference
JW Marriott Starr Pass Resort & Spa, Tucson, Ariz.
Contact: 1-703-739-0800; http://www.abiworld.org/
April 10-12, 2013
TURNAROUND MANAGEMENT ASSOCIATION
TMA Spring Conference
JW Marriott Chicago, Chicago, Ill.
Contact: http://www.turnaround.org/
October 3-5, 2013
TURNAROUND MANAGEMENT ASSOCIATION
TMA Annual Convention
Marriott Wardman Park, Washington, D.C.
Contact: http://www.turnaround.org/
*********
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 ***