/raid1/www/Hosts/bankrupt/TCR_Public/111105.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
Saturday, November 5, 2011, Vol. 15, No. 307
Headlines
AMBASSADORS INTERNATIONAL: Files September 2011 Operating Report
BORDERS GROUP: Has $75 Million Cash at Sept. 24
EMIVEST AEROSPACE: Ends September 2011 With $154,898 Cash
IRWIN MORTGAGE: Ends September 2011 With $5.4 Million Cash
LEHMAN BROTHERS: Cash Pile Reaches $25.7-Bil. as of Sept. 30
LTV CORPORATION: Ends September 2011 With $3.39 Million Cash
MERIT GROUP: Ends September 2011 With $5.2 Million Cash in Bank
NEBRASKA BOOK: Posts $38.5MM Net Loss in September 2011
NEWPAGE CORP: Has $55.9-Mil. Net Loss for Sept. 7-30
OPEN RANGE: Files Initial Monthly Operating Report
PFF BANCORP: Reports $372,866 Net Income in September 2011
SOUTHWEST GEORGIA: Reports $5.19 Million Net Income in September
TOWNSENDS INC: Posts $568,000 Net Loss in September 2011
TOWNSENDS INC: Reports $109,000 Net Income in August 2011
WASHINGTON MUTUAL: Ends September 2011 With $4.48 Billion Cash
*********
AMBASSADORS INTERNATIONAL: Files September 2011 Operating Report
----------------------------------------------------------------
On Oct. 31, 2011, Ambassadors International, Inc., and its U.S.
subsidiaries filed their monthly operating report for the month
ended Sept. 30, 2011, with the U.S. Bankruptcy Court for the
District of Delaware.
As previously disclosed, substantially all the assets of the
Company and the other Debtors were sold on May 25, 2011, pursuant
to a sale order entered, following a hearing, by the Bankruptcy
Court pursuant to Section 363 of the Bankruptcy Code. The Debtors
are not currently conducting any business operations and will have
no business operations in the future. The remaining net cash
proceeds from the sale of assets represent the principal remaining
asset of the Debtors. The remaining cash proceeds are expected to
be used to provide for the wind-down and liquidation of the
Company's estate and to pay post-petition administrative claims in
the Company's bankruptcy proceedings. Accordingly, the Company
does not expect that there will be any proceeds available for
distribution to the Company's stockholders or holders of the
Company's convertible notes. The Debtors are currently winding up
their activities.
On Sept. 27, 2011, the Bankruptcy Court held a status conference
with respect to a proposed disclosure statement (the "Committee
Disclosure Statement") related to a proposed plan of liquidation
of the Debtors (the "Committee Plan"), filed with the Bankruptcy
Court by the Official Committee of Unsecured Creditors appointed
in the Debtors' bankruptcy cases. To date, no action has been
taken by the Bankruptcy Court with respect to the Committee Plan.
At this time, no hearing is set for the Bankruptcy Court to
consider approval of the Committee Plan or Committee Disclosure
Statement.
At Sept. 30, 2011, the Debtors had $1.29 million in cash,
$33.74 million in total liabilities, and a stockholders' deficit
of $32.45 million.
A copy of the September 2011 operating report is available for
free at http://is.gd/LKd1MR
About Ambassadors International
Headquarters in Seattle, Washington, Ambassadors International,
Inc. (NASDAQ: AMIE) -- http://www.ambassadors.com/-- operates
Windstar Cruises, a three-ship fleet of luxury yachts that explore
the hidden harbors and secluded coves of the world's most sought-
after destinations. Carrying 148 to 312 guests, the luxurious
ships of Windstar cruise to nearly 50 nations, calling at 100
ports throughout Europe, the Caribbean and the Americas.
Ambassadors International Inc. and 11 affiliates sought Chapter 11
bankruptcy protection (Bankr. D. Del. Lead Case No. 11-11002) on
April 1, 2011.
Kristopher M. Hansen, Esq.; Sayan Bhattacharyya, Esq.; Marianne
Mortimer, Esq.; and Matthew G. Garofalo, Esq., at Stroock &
Stroock & Lavan LLP, serve as the Debtors' bankruptcy counsel.
Imperial Capital, LLC, is the Debtors' financial advisor. Phase
Eleven Consultants, LLC, is the Debtors' claims and notice agent.
The Debtors tapped Bifferato Gentilotti LLC as Delaware counsel,
and Richards, Layton & Finger as bankruptcy co-counsel.
The Official Committee of Unsecured Creditors tapped Kelley Drye &
Warren LLP as its counsel, and Lowenstein Sandler PC as its
co-counsel.
The Debtors disclosed $86.4 million in total assets and
$87.3 million in total debts as of Dec. 31, 2010.
BORDERS GROUP: Has $75 Million Cash at Sept. 24
-----------------------------------------------
Borders Group, Inc.
Balance Sheet
As of September 24, 2011
ASSETS
Current assets:
Cash and cash equivalents $75,000,000
Merchandise inventories -
Accounts receivable and other current assets 95,600,000
Property and equipment, held for sale 4,600,000
----------------
Total assets in liquidation 175,200,000
----------------
TOTAL ASSETS $175,200,000
================
LIABILITIES
Current liabilities:
Trade accounts payable $3,200,000
Accrued payroll and other liabilities 61,100,000
Taxes, including income taxes 27,000,000
Liabilities subject to compromise 788,800,000
----------------
Total liabilities in liquidation 880,100,000
----------------
NET ASSETS (LIABILITIES) IN LIQUIDATION ($704,900,000)
================
Borders Group, Inc.
Statement of Operations
For the Period Aug. 28, 2011 to Sept. 24, 2011
Sales $3,300,000
Other revenue 156,200,000
----------------
Total revenue 159,500,000
Cost of merchandise sold (includes occupancy) 95,100,000
----------------
Gross margin 64,400,000
Selling, general and administrative expenses 2,800,000
Asset impairments and other writedowns -
----------------
Operating income (loss) 61,600,000
Interest expense (income) 100,000
Loss on extinguishment of debt -
----------------
Total interest expense 100,000
Income (loss) from continuing operations
before reorganization items and income taxes 61,500,000
Reorganization items, net (4,600,000)
----------------
Income (loss) from continuing operations
before income taxes 66,100,000
Income tax provision (benefit) -
----------------
NET INCOME (LOSS) $66,100,000
================
Borders Group, Inc.
Schedule of Cash Receipts and Disbursements
For the period Aug. 28, 2011 to Sept. 24, 2011
Cash Receipts
Combined Debtors $178,628,000
----------------
Total Cash Receipts $178,628,000
================
Cash Disbursements:
Borders Group, Inc. ($3,902,000)
Borders, Inc. (152,402,000)
Borders International Services, Inc. -
Borders Direct, LLC -
Borders Properties, Inc. (17,000)
Borders Online, Inc. -
Borders Online, LLC -
BGP (UK) Limited -
----------------
Total Cash Disbursements ($156,321,000)
================
Borders also made payments totaling $7,268,000 for its DIP Loans
and Leases for the period August 28, 2011, to September 24, 2011.
A full-text copy of the Monthly Operating Report is available for
free at http://bankrupt.com/misc/Borders_Sept2011MOR.pdf
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
EMIVEST AEROSPACE: Ends September 2011 With $154,898 Cash
---------------------------------------------------------
Emivest Aerospace Corporation reported a net loss of $392,673
on $0 revenue for September 2011.
At Sept. 30, 2011, the Debtor had $2.5 million in total assets,
$82.1 million in total liabilities, and a shareholders' deficit of
$79.6 million. The Debtor ended the period with $154,898 cash,
compared to beginning cash of $190,918.
A copy of the September 2011 monthly operating report is available
for free at:
http://bankrupt.com/misc/emivestaerospace.sept2011mor.pdf
About Emivest Aerospace
Emivest Aerospace Corporation -- http://www.sj30jet.com/-- is a
U.S.-based aircraft manufacturing company and a subsidiary of
Emirates Investment & Development PSC. Emivest Aerospace
Corporation produces the SJ30 light jet.
Emivest Aerospace Corporation filed for Chapter 11 protection
(Bankr. D. Del. Case No. 10-13391) on Oct. 20, 2010. Emivest
disclosed $80,700,232 in assets and $77,333,546 in liabilities as
of the Chapter 11 filing.
Daniel B. Butz, Esq., at Morris, Nichols, Arsht & Tunnell LLP, in
Wilmington, Delaware, serves as counsel to the Debtor. Morgan
Joseph & Co. Inc. is the financial advisor to the Debtor. The
Debtor also hired DLA Piper LLP (US) as special counsel to assist
in the marketing of its assets. Attorneys at Pachulski Stang
Ziehl & Jones LLP serve as counsel to the Official Committee of
Unsecured Creditors. Deloitte Financial Services LLP is the
Committee's financial advisor.
IRWIN MORTGAGE: Ends September 2011 With $5.4 Million Cash
----------------------------------------------------------
Irwin Mortgage Corporation filed on Oct. 20, 2011, its monthly
operating report for September 2011.
The Debtor submitted a cash receipts & disbursements summary for
September, disclosing:
Beginning Cash $5,561,276
Receipts $1,349
Disbursements $126,956
Net Receipts (Disbursement) ($125,606)
Ending Cash $5,435,670
A copy of the monthly operating report is available for free at:
http://bankrupt.com/misc/irwinmortgage.september2011mor.pdf
About Irwin Mortgage
For a number of years, Irwin Mortgage Corporation, based in
Dublin, Ohio, originated, purchased, sold and serviced
conventional and government agency backed residential mortgage
loans throughout the United States. However, in 2006 and
continuing into early 2007, IMC sold substantially all of its
assets, including its mortgage origination business, its mortgage
servicing business, and its mortgage servicing rights portfolio,
to a number of third party purchasers. As a result of those
sales, IMC terminated its operations and has been winding down
since 2006.
Irwin Mortgage filed for Chapter 11 bankruptcy (Bankr. S.D. Ohio
Case No. 11-57191) on July 8, 2011. Judge Charles M. Caldwell
presides over the case. In its petition, the Debtor estimated
assets of $10 million to $50 million, and debts of $50 million to
$100 million. The petition was signed by Fred C. Caruso,
president.
Nick V. Cavalieri, Esq., and Matthew T. Schaeffer, Esq., at Bailey
Cavalieri LLC, serve as the Debtor's counsel. Fred C. Caruso and
Development Specialists Inc. provide wind-down management services
to the Debtor.
LEHMAN BROTHERS: Cash Pile Reaches $25.7-Bil. as of Sept. 30
------------------------------------------------------------
Lehman Brothers Holdings Inc. disclosed these cash receipts and
disbursements of the company, its affiliated debtors and
controlled entities for the month ended August 31, 2011:
Beginning Total Cash & Investments (09/01/11) $25,494,000,000
Total Sources of Cash 906,000,000
Total Uses of Cash (630,000,000)
FX Fluctuation (33,000,000)
---------------
Ending Total Cash & Investments (09/30/11) $25,737,000,000
LBHI reported $4.106 billion in cash and investments as of
September 1, 2011, and $4.225 billion as of September 30, 2011.
The monthly operating report also showed that a total of
$35,206,000 was paid last month to the U.S Trustee and
professionals that were retained in the Debtors' Chapter 11
cases.
From September 15, 2008 to September 30, 2011, a total of
$1,442,658,000 was paid to the U.S. Trustee and professionals, of
which $478,248,000 was paid to the Debtors' turnaround manager
Alvarez & Marsal LLC while $343,317,000 was paid to their
bankruptcy counsel, Weil Gotshal & Manges LLP.
A copy of the September 2011 Operating Report is available for
free at http://bankrupt.com/misc/LehmanMORSept3011.pdf
June MOR Balance Sheet
Lehman Brothers Holdings Inc. and its affiliated debtors filed
with the Court copies of their balance sheets as of June 30,
2011. The documents showed that as of June 30, 2011, LBHI had
total assets of $139.462 billion, total liabilities of $178.495
billion and total stockholders' equity of ($39.033 billion).
Copies of the balance sheets are available without charge at
http://bankrupt.com/misc/LBHI_SuppJune2011MOR.pdf
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)
LTV CORPORATION: Ends September 2011 With $3.39 Million Cash
------------------------------------------------------------
On Oct. 20, 2011, The LTV Corporation, et al., submitted to
the United States Bankruptcy Court for the Northern District of
Ohio, Eastern Division, their monthly operating report for
September 2011.
LTV ended the period with a $3,391,000 cash balance. LTV
reported $1,000 in receipts and $416,000 in disbursements in
August, including $378,000 paid to Chapter 11 professionals.
Beginning cash was $3,806,000.
A complete text of the operating report is available for free at:
http://is.gd/HfYObq
About The LTV Corporation
Headquartered in Cleveland, Ohio, The LTV Corp. operates as a
domestic integrated steel producer. The Company along with 48
subsidiaries filed for Chapter 11 protection on Dec. 29, 2000
(Bankr. N.D. Ohio, Case No. 00-43866). On Aug. 31, 2001, the
Company disclosed $4,853,100,000 in total assets and
$4,823,200,000 in total liabilities.
By order dated Feb. 28, 2002, the Court approved the sale of
substantially all of the Debtors' integrated steel assets to WLR
Acquisition Corp. n/k/a International Steel Group, Inc., for a
purchase price of roughly $80 million, plus the assumption of
certain environmental and other obligations. ISG also purchased
inventories which were located at the integrated steel facilities
for roughly $52 million. The sale of the Debtors' integrated
steel assets to ISG closed in April 2002, and a second closing
related to the purchase of the inventory occurred in May 2002.
On Dec. 31, 2002, substantially all of the assets of the Pipe
and Conduit Business, consisting of LTV Tubular Company, a
division of LTV Steel Company, Inc., and Georgia Tubing
Corporation, were sold to Maverick Tube Corporation for cash of
roughly $120 million plus the assumption of certain environmental
and other obligations. On Oct. 16, 2002, the Debtors announced
that they intended to reorganize the Copperweld Business as a
stand-alone business. The LTV Corporation no longer exercised any
control over the business or affairs of the Copperweld Business.
A separate plan of reorganization was developed for the Copperweld
Business. On Aug. 5, 2003, the Copperweld Business filed a
disclosure statement for the Joint Plan of Reorganization of
Copperweld Corporation and certain of its debtor affiliates. On
Oct. 8, 2003, the Court approved the Second Amended Disclosure
Statement. On Nov. 17, 2003, the Court confirmed the Second
Amended Joint Plan, as modified, and on Dec. 17, 2003, the Plan
became effective and the common stock was canceled. Because The
LTV Corporation received no distributions under the Second Amended
Plan, its equity in the Copperweld Business is worthless and has
been canceled.
In November 2002, the Debtors paid the DIP Lenders the remaining
balance due for outstanding loans and in December 2002, the
remaining letters of credit were canceled or cash collateralized.
Consequently, the Debtors have no remaining obligation to the DIP
Lenders. Pursuant to a February 2003 Court order, LTV Steel
continued the orderly liquidation and wind down of its businesses.
On Oct. 8, 2003, the Court entered an Order substantively
consolidating the Chapter 11 estates of LTV Steel and Georgia
Tubing Corporation for all purposes.
In November and December 2003, approximately $91.9 million was
distributed by LTV Steel to other Debtors pursuant to the
Intercompany Settlement Agreement that was approved by the Court
on Nov. 17, 2003. On Dec. 23, 2003, the Court authorized LTV
Steel and Georgia Tubing to make distributions to their
administrative creditors and, after the final distribution, to
dismiss their Chapter 11 cases and dissolve.
On March 31, 2005, the Court entered an order that among other
things: (a) approved a distribution and dismissal plan for LTV
and certain other debtors; (b) authorized The LTV Corporation
and LTV Steel to take any and all actions that are necessary or
appropriate to implement the distribution and dismissal plan;
(c) established March 31, 2005, as the record date for identifying
shareholders of LTV that are entitled to any and all shareholder
rights with respect to the distribution and dismissal plan and the
eventual dissolution of LTV; and (d) authorized The LTV
Corporation to establish and fund a reserve account for the
conduct of post-dismissal activities and the payment of post-
dismissal claims.
LTV is in the process of liquidating, and its stock is worthless.
There is no set of facts known to LTV that will result in proceeds
of asset sales exceeding LTV's known liabilities. Thus, there
will be no recovery to LTV's stockholders.
On March 28, 2007, the Official Committee of Administrative
Claimants filed a motion with the Court requesting an order to
approve the appointment of a Chapter 11 trustee. On April 11,
2007, April 12, 2007, and May 1, 2007, certain of the Defendants
filed motions to convert the case to Chapter 7. On June 28, 2007,
the ACC filed a motion to withdraw the Chapter 11 Trustee Motion;
the Court granted the ACC's withdrawal motion on Aug. 1, 2007. An
evidentiary hearing on the Chapter 7 Trustee Motion was held in
August 2007. The Court has not yet issued its order.
MERIT GROUP: Ends September 2011 With $5.2 Million Cash in Bank
---------------------------------------------------------------
TMG Liquidation Company, et al. (f/k/a The Merit Group, Inc., et
al.) filed with the U.S. Bankruptcy Court for the District of
Southern Carolina on Oct. 24, 2011, their monthly operating
report for the period Sept. 1, 2011, through Sept. 30, 2011.
The Debtors ended the period with $5,223,950.67 cash:
Beginning Balance $5,622,188.08
Receipts $65,264.82
Disbursements $463,502.23
Change in Cash ($398,237.41)
Ending Balance $5,223,950.67
Income statement and balance sheet information were not provided.
A copy of the September 2011 monthly operating report is available
for free at http://bankrupt.com/misc/meritgroup.sept2011mor.pdf
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.
NEBRASKA BOOK: Posts $38.5MM Net Loss in September 2011
-------------------------------------------------------
BankruptcyData.com reports that Nebraska Book Company filed with
the U.S. Bankruptcy Court a monthly operating report for
September 2011. For the period, the Company reported a net loss
of $38.5 million on $169 million in revenue. The Company reports
paying $1,722,584 in professional fees during the month.
About Nebraska Book
Lincoln, Nebraska-based Nebraska Book Company, Inc., is one of the
leading providers of new and used textbooks for college students
in the United States. Nebraska Book and seven affiliates filed
separate Chapter 11 petitions (Bankr. D. Del. Case Nos. 11-12002
to 11-12009) on June 27, 2011. Hon. Peter J. Walsh presides over
the case. Lawyers at Kirkland & Ellis LLP and Pachulski Stang
Ziehl & Jones LLP, serve as the Debtors' bankruptcy counsel. The
Debtors; restructuring advisors are AlixPartners LLC; the
investment bankers are Rothschild, Inc.; the auditors are Deloitte
& Touche LLP; and the claims agent is Kurtzman Carson Consultants
LLC. As of the Petition Date, the Debtors had consolidated assets
of $657,215,757 and debts of $563,973,688.
JPMorgan Chase Bank N.A., as administrative agent for the DIP
lenders, is represented by lawyers at Richards, Layton & Finger,
P.A., and Simpson Thacher & Bartlett LLP. J.P. Morgan Investment
Management Inc., the DIP arranger, is represented by lawyers at
Bayard, P.A., and Willkie Farr & Gallagher LLP.
An ad hoc committee of holders of more than 50% of the Debtors'
Second Lien Notes is represented by lawyers at Brown Rudnick. An
ad hoc committee of holders of the Debtors' 8.625% unsecured
notes are represented by Milbank, Tweed, Hadley & McCloy LLP.
The Official Committee of Unsecured Creditors selected Lowenstein
Sandler LLP and Stevens & Lee, P.C., as lawyers and Mesirow
Financial Inc. as financial advisers.
Nebraska Book prepared a pre-packaged Chapter 11 plan that would
swap some of the existing debt for new debt, cash and the new
stock. However, Nebraska Book has been unable to secure a $250
million loan required for confirming and implementing the plan.
The plan called for new financing to pay off first- and second-
lien debt in full, while giving most of the new equity to
subordinated noteholders of the operating company and holders of
notes issued by the holding company.
NEWPAGE CORP: Has $55.9-Mil. Net Loss for Sept. 7-30
----------------------------------------------------
Bill Rochelle, the bankruptcy columnist for Bloomberg News,
reports that NewPage Corp. filed an operating report covering the
period from the filing of the Chapter 11 petition on Sept. 7
through the end of the month. For the partial month, the net loss
was $55.9 million, due in large part to $41.3 million in
"reorganization items." Net sales in the partial month were
$246.5 million.
About NewPage Corporation
Headquartered in Miamisburg, Ohio, NewPage Corporation is the
leading producer of printing and specialty papers in North
America, based on production capacity, with $3.6 billion in net
sales for the year ended December 31, 2010. The company's product
portfolio is the broadest in North America and includes coated
freesheet, coated groundwood, supercalendered, newsprint and
specialty papers. These papers are used for corporate collateral,
commercial printing, magazines, catalogs, books, coupons, inserts,
newspapers, packaging applications and direct mail advertising.
NewPage owns paper mills in Kentucky, Maine, Maryland, Michigan,
Minnesota, Wisconsin and Nova Scotia, Canada. These mills have a
total annual production capacity of approximately 4.1 million tons
of paper, including approximately 2.9 million tons of coated
paper, approximately 1.0 million tons of uncoated paper and
approximately 200,000 tons of specialty paper.
NewPage Corporation, along with affiliates, filed Chapter 11
bankruptcy protection (Bankr. D. Del. Lead Case No. 11-12804) on
Sept. 7, 2011. Martin J. Bienenstock, Esq., Judy G.Z. Liu, Esq.,
and Philip M. Abelson, Esq., Dewey & Leboeuf LLP, in New York,
serve as counsel. Laura Davis Jones, Esq., at Pachulski Stang
Ziehl & Jones LLP, in Wilmington, Delaware, serves as co-counsel.
Lazard Freres & Co. LLC is the investment banker, and FTI
Consulting Inc. is the financial advisor. Kurtzman Carson
Consultants LLC is the claims and notice agent. In its balance
sheet, the Debtors disclosed $3.4 billion in assets and $4.2
billion in total liabilities as of June 30, 2011.
Attorneys at Young Conaway Stargatt & Taylor, LLP, and Paul,
Hastings, Janofsky & Walker LLP, represent the Official Committee
of Unsecured Creditors.
NewPage Corp. prevailed over most objections from the official
creditors' committee and won agreement from the bankruptcy judge
on final approval of $600 million in secured financing.
Moody's Investors Service assigned a Ba2 rating to the
$350 million first-out revolving debtor-in-possession credit
facility and a B2 rating to the $250 million second-out debtor-in-
possession term loan for NewPage.
OPEN RANGE: Files Initial Monthly Operating Report
--------------------------------------------------
On Oct. 28, 2011, Open Range Communications Inc. submitted to the
bankruptcy court an initial monthly operating report.
The Debtor submitted a 13-week budget through Dec. 23, 2011.
A copy of the initial monthly operating report is available for
free at http://bankrupt.com/misc/openrange.initialmor.pdf
About Open Range
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.
PFF BANCORP: Reports $372,866 Net Income in September 2011
----------------------------------------------------------
PFF Bancorp, Inc., Glencrest Investment Advisors, Inc., Glencrest
Insurance Services, Inc., Diversified Builder Services, Inc., and
PFF Real Estate Services, Inc., filed on Oct. 20, 2011, their
monthly operating reports for September 2011 with the United
States Bankruptcy Court for the District of Delaware.
PFF Bancorp reported net income of $372,866 for the period.
At Sept. 30, 2011, PFF Bancorp had total assets of $55.1 million,
total liabilities of $159.9 million, and a stockholders' deficit
of $104.8 million.
A copy of the operating report is available for free at:
http://is.gd/sf8Z8H
About PFF Bancorp
PFF Bancorp Inc. -- http://www.pffbank.com/-- was a non-
diversified unitary savings and loan holding company within the
meaning of the Home Owners' Loan Act with headquarters formerly
located in Rancho Cucamonga, California. Bancorp is the direct
parent of each of the remaining Debtors.
Prior to filing for bankruptcy, Bancorp was also the direct parent
of PFF Bank & Trust, a federally chartered savings institution,
and said bank's subsidiaries. PFF Bank & Trust was taken over by
regulators in November 2008, with the deposits transferred by the
Federal Deposit Insurance Corp. to U.S. Bank NA.
PFF Bancorp Inc. and its affiliates sought Chapter 11 protection
on Dec. 5, 2008 (Bankr. D. Del. Case No. 08-13127 to
08-13131). Chun I. Jang, Esq., and Paul N. Heath, Esq., at
Richards, Layton & Finger, P.A., serve as the Debtors' bankruptcy
counsel. Kurtzman Carson Consultants LLC serves as the Debtors'
claims agent. Jason W. Salib, Esq., at Blank Rome LLP, represents
the official committee of unsecured creditors as counsel.
SOUTHWEST GEORGIA: Reports $5.19 Million Net Income in September
----------------------------------------------------------------
Southwest Georgia Ethanol LLC reported net income of $5.19 million
on $26.81 million of revenues for the month ending Sept. 30, 2011.
EBITDA was $1.07 million for the month.
Professional fees in the month were $728,416.
The Debtor's balance sheet at Sept. 30, 2011, showed
$176.83 million in total assets, $149.56 million in total
liabilities, and total equity of $27.27 million.
A copy of the September 2011 operating report is available for
free at http://bankrupt.com/misc/southwestgeorgia.sept2011mor.pdf
About Southwest Georgia Ethanol
Southwest Georgia Ethanol LLC, a unit of First United Ethanol Co.,
sought bankruptcy protection (Bankr. M.D. Ga. 11-10145) in Albany,
Georgia, on Feb. 1, 2011.
The Debtor owns and operates an ethanol production facility
located on 267 acres in Mitchell County, Georgia, producing
100 million gallons of ethanol annually. Ethanol production
operations commenced in October 2008. Revenue was $168.9 million
for fiscal year ended Sept. 30, 2010. The Debtor said
profitability and liquidity have been materially reduced by
unfavorable fluctuations in commodity prices for ethanol and corn.
Gary W. Marsh, Esq., J. Michael Levengood, Esq., and Bryan E.
Bates, Esq., at McKenna Long & Aldridge LLP, in Atlanta, Georgia,
serve as counsel to the Debtor. Morgan Keegan & Company, Inc., is
the investment banker and financial advisor.
The Debtor's balance sheet showed $164.7 million in assets and
$134.1 million in debt as of Dec. 31, 2010.
Since 2008, at least 11 ethanol-related companies have sought
court protection, including VeraSun Energy Corp., once the second-
largest U.S. ethanol maker; units of Pacific Ethanol Inc.; and
White Energy Holding Co.
TOWNSENDS INC: Posts $568,000 Net Loss in September 2011
--------------------------------------------------------
TW Liquidation Corp., formerly known as Townsends, Inc., and
subsidiaries reported a consolidated net loss of $568,000 for the
month ended Sept. 30, 2011.
At Sept. 30, 2011, the Debtors had $2.52 million in total assets,
$57.50 million in total liabilities, and stockholders' deficit of
$54.98 million. The Debtors ended the period with $1.42 million
cash, which includes $1.07 million of restricted cash.
A copy of the operating report is available for free at:
http://bankrupt.com/misc/townsends.sept2011mor.pdf
About Townsends Inc.
Founded in 1891, Townsends Inc. is a third-generation, family-
owned poultry company. Headquartered in Georgetown, Delaware,
Townsends operates production and processing facilities in
Arkansas and North Carolina. Townsends Inc. -- fka Townsend
Specialty Foods -- and several affiliates filed for Chapter 11
bankruptcy protection (Bankr. D. Del. Lead Case No. 10-14092) on
Dec. 19, 2010. As of Dec. 5, 2010, the Debtors disclosed
$131 million in total assets and $127 million in total debts.
Derek C. Abbott, Esq., at Morris Nichols Arsht & Tunnell, serves
as the Debtors' bankruptcy counsel. McKenna Long & Aldridge LLP
serves as special counsel. Huron Consulting Group's Dalton T.
Edgecomb serves as the Debtors' chief restructuring officer. SSG
Capital Advisors, LLC, serves as investment banker. Donlin,
Recano & Company, Inc., is the Debtors' claims, noticing and
balloting agent.
An Official Committee of Unsecured Creditors has been appointed in
the case. The Committee has tapped Lowenstein Sandler PC as its
counsel and J.H. Cohn LLP as its financial advisor. No trustee or
examiner has been appointed in the Debtors' bankruptcy cases.
The Debtors sold virtually all of their assets in two Asset Sale
transactions which closed on Feb. 25, 2011. The purchasers were
Omtron, Ltd., and Peco Foods, Inc.
On Oct. 4, 2011, the Delaware Bankruptcy Court signed an order n
converting the Debtor's Chapter 11 case to a liquidation in
Chapter 7 where a trustee will be appointed automatically.
TOWNSENDS INC: Reports $109,000 Net Income in August 2011
---------------------------------------------------------
TW Liquidation Corp., formerly known as Townsends, Inc., and
subsidiaries reported consolidated net income of $109,000 for the
month ended Aug. 31, 2011.
At Aug. 31, 2011, the Debtors had $2.95 million in total assets,
$57.27 million in total liabilities, and stockholders' deficit of
$54.32 million. The Debtors ended the period with $1.68 million
cash.
A copy of the operating report is available for free at:
http://bankrupt.com/misc/townsends.aug2011mor.pdf
About Townsends Inc.
Founded in 1891, Townsends Inc. is a third-generation, family-
owned poultry company. Headquartered in Georgetown, Delaware,
Townsends operates production and processing facilities in
Arkansas and North Carolina. Townsends Inc. -- fka Townsend
Specialty Foods -- and several affiliates filed for Chapter 11
bankruptcy protection (Bankr. D. Del. Lead Case No. 10-14092) on
Dec. 19, 2010. As of Dec. 5, 2010, the Debtors disclosed
$131 million in total assets and $127 million in total debts.
Derek C. Abbott, Esq., at Morris Nichols Arsht & Tunnell, serves
as the Debtors' bankruptcy counsel. McKenna Long & Aldridge LLP
serves as special counsel. Huron Consulting Group's Dalton T.
Edgecomb serves as the Debtors' chief restructuring officer. SSG
Capital Advisors, LLC, serves as investment banker. Donlin,
Recano & Company, Inc., is the Debtors' claims, noticing and
balloting agent.
An Official Committee of Unsecured Creditors has been appointed in
the case. The Committee has tapped Lowenstein Sandler PC as its
counsel and J.H. Cohn LLP as its financial advisor. No trustee or
examiner has been appointed in the Debtors' bankruptcy cases.
The Debtors sold virtually all of their assets in two Asset Sale
transactions which closed on Feb. 25, 2011. The purchasers were
Omtron, Ltd., and Peco Foods, Inc.
On Oct. 4, 2011, the Delaware Bankruptcy Court signed an order n
converting the Debtor's Chapter 11 case to a liquidation in
Chapter 7 where a trustee will be appointed automatically.
WASHINGTON MUTUAL: Ends September 2011 With $4.48 Billion Cash
--------------------------------------------------------------
On Oct. 26, 2011, Washington Mutual, Inc., and WMI Investment
Corp. filed their monthly operating report for September 2011 with
the United States Bankruptcy Court for the District of Delaware.
Washington Mutual reported a net loss of $6.5 million for the
period.
At Sept. 30, 2011, Washington Mutual had $6.711 billion in total
assets, $8.398 billion in total liabilities, and a shareholders'
deficit of $1.687 billion. Washington Mutual ended September 2011
with $4.480 billion in unrestricted cash and cash equivalents.
Washington Mutual paid a total of $11,548,081 in professional fees
and reimbursed a total of $828,977 in professional expenses in
September.
WMI Investment reported a net loss of $40,900 for the month of
September.
At Sept. 30, 2011, WMI Investment had $913,667,488 in total
assets, $14,825 in post-petition liabilities, and a stockholders'
equity of $913,652,663. WMI Investment ended September 2011 with
$276,787,670 in unrestricted cash and cash equivalents.
A complete text of the operating report is available for free at:
http://is.gd/y6NK58
About Washington Mutual
Based in Seattle, Washington, Washington Mutual Inc. --
http://www.wamu.com/-- was the holding company for Washington
Mutual Bank as well as numerous non-bank subsidiaries.
Washington Mutual Bank was taken over on Sept. 25, 2008, by U.S.
government regulators. The next day, WaMu and its affiliate, WMI
Investment Corp., filed separate petitions for Chapter 11 relief
(Bankr. D. Del. 08-12229 and 08-12228, respectively). WaMu owns
100% of the equity in WMI Investment. When WaMu filed for
protection from its creditors, it disclosed assets of
$32,896,605,516 and debts of $8,167,022,695. WMI Investment
estimated assets of $500 million to $1 billion with zero debts.
WaMu is represented by Brian Rosen, Esq., at Weil, Gotshal &
Manges LLP in New York City; Mark D. Collins, Esq., at Richards,
Layton & Finger P.A. in Wilmington, Del.; and Peter Calamari,
Esq., and David Elsberg, Esq., at Quinn Emanuel Urquhart Oliver &
Hedges, LLP. The Debtor tapped Valuation Research Corporation as
valuation service provider for certain assets.
Fred S. Hodara, Esq., at Akin Gump Strauss Hauer & Fled LLP in New
York, and David B. Stratton, Esq., at Pepper Hamilton LLP in
Wilmington, Del., represent the Official Committee of Unsecured
Creditors. Stephen D. Susman, Esq., at Susman Godfrey LLP and
William P. Bowden, Esq., at Ashby & Geddes, P.A., represent the
Equity Committee. The official committee of equity security
holders also tapped BDO USA as its tax advisor. Stacey R.
Friedman, Esq., at Sullivan & Cromwell LLP and Adam G. Landis,
Esq., at Landis Rath & Cobb LLP in Wilmington, Del., represent
JPMorgan Chase, which acquired the WaMu bank unit's assets prior
to the Petition Date.
On Jan. 7, 2011, the Bankruptcy Court entered a 107-page opinion
determining that the global settlement agreement, among certain
parties including WMI, the Federal Deposit Insurance Corporation
and JPMorgan, upon which the Plan is premised, and the
transactions contemplated therein, are fair, reasonable, and in
the best interests of WMI. However, the Opinion and related order
denied confirmation, but suggested certain modifications to the
Company's Sixth Amended Joint Plan of Affiliated Debtors that, if
made, would facilitate confirmation.
WaMu filed a Modified Sixth Amended Joint Plan and a related
Supplemental Disclosure Statement, which it believes would address
the Bankruptcy Court's concerns.
On Sept. 13, 2011, Judge Walrath denied confirmation of WaMu's
Modified Sixth Amended Plan and granted equity committee standing
to prosecute claims for equitable disallowance but stayed the
ruling pending mediation.
WaMu said it would seek confirmation of a revised plan "as soon as
practicable."
The Plan proposes to pay more than $7 billion to creditors and
incorporates a global settlement agreement resolving issues among
the Debtors, JPMorgan Chase, the Federal Deposit Insurance Corp.
in its corporate capacity and as receiver for WaMu Bank, certain
large creditors, certain WMB senior noteholders, and the
creditors' committee. The Settlement Noteholders are Appaloosa
Management, L.P., Aurelius Capital Management LP, Centerbridge
Partners, LP, and Owl Creek Asset Management, L.P.
*********
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.
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