/raid1/www/Hosts/bankrupt/TCR_Public/111212.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
Monday, December 12, 2011, Vol. 15, No. 344
Headlines
261 EAST: Case Summary & 12 Largest Unsecured Creditors
3 G PROPERTIES: Wants Until Dec. 15 to Solicit Plan Acceptances
3661 PRESIDENTIAL: Case Summary & 2 Largest Unsecured Creditors
500 STERLING: Case Summary & 16 Largest Unsecured Creditors
AFFINION GROUP: S&P Revises 'B+' Rating Outlook to Negative
AFFORDABLE BUILDING: Case Summary & 20 Largest Unsecured Creditors
AIRESURF NETWORKS: D&Os D. Mitchell and G. Brent Leave Posts
ALABAMA HOUSING: S&P Raises Series 2003F Bond Rating From 'BB+'
ALLIED IRISH: Does Not Require Add'l Capital, EBA Confirms
AMBAC FINANCIAL: Judge Tosses Out Depfa Bank's Claim
AMERICAN DEFENSE: Posts $1.6 Million Net Loss in Third Quarter
AMERICAN LASER: Wins Interim Approval of Chapter 11 Loan
ALC HOLDINGS: Case Summary & 30 Largest Unsecured Creditors
ARCHIMEDES FUNDING: Fitch Cuts Ratings on 3 Note Classes to 'D'
AS SEEN ON TV: Posts $12.1 Million Net Loss in Sept. 30 Quarter
ASTORIA GENERATING: S&P Lowers $100MM Term Loan Rating to 'CCC'
ATLANTIC & PACIFIC: Amends Q3 Form 10-Q for Redacted C&S Deal
ATLANTIC & PACIFIC: Has Plan Financing Nod, Formal Union Deals
ATMAN HOSPITALITY: Court Names Michael Kasolas as Ch. 11 Trustee
ATRIUM COS: S&P Affirms 'B-' Corporate; Outlook Negative
AUGUSTA HOUSING: S&P Raises Rating on Revenue Bonds From 'BB'
AVENTINE RENEWABLE: Liquidity Tightens on Operating Hiccups
AVENTINE RENEWABLE: S&P Cuts Corporate Credit Rating to 'CCC+'
AZ CHEM: Standard & Poor's Affirms 'B+' Corporate Credit Rating
BANKUNITED FINANCIAL: To Extend CRO Engagement Thru March 2012
BEACON POWER: Wants Until Dec. 14 to File Schedules and Statements
BEACON POWER: U.S. Department of Energy Seeks Bidding Rights
BERNARD L. MADOFF: Investors Lose Bid to Appeal $44MM Trustee Fees
BESO LLC: Sues Co-Investor Vicidomine to Recover Excess Funds
BIO-BRIDGE SCIENCE: Posts $271,600 Net Loss in Third Quarter
BIOZONE PHARMACEUTICALS: Issues 500,000 Shares of Common Stock
BOBBY ROWE: Bankruptcy Auction Moved to Dec. 21
BOUNDARY BAY: Committee Retains Crowe Horwarth as Accountants
BRIGHAM EXPLORATION: 92% Outstanding Shares Tendered to Statoil
BRIGHAM EXPLORATION: Common Stock Delisted from NASDAQ
BUILDERS FIRSTSOURCE: Secures $160MM Term Loan from Highbridge
BUNGE ASSET: Moody's to End ABCP Rating Actions
CALAIS RESOURCES: In Talks with Brigus Regarding Payment of Note
CANO PETROLEUM: Receives Delisting Notice From NYSE Amex
CANO PETROLEUM: Common Shares to be Delisted from NYSE Amex
CCH II LLC: Fitch Affirms 'BB-' Issuer Default Rating
CD & A: Case Summary & 8 Largest Unsecured Creditors
CHINA GINSENG: Posts $412,200 Net Loss in Sept. 30 Quarter
CIRCLE STAR: Signs Letter Agreement with Ingebritson, et al.
CIRCLE STAR: Presents at 4th Annual LD Micro Growth Conference
CIRCLE STAR: To Acquire Permian Basin Oil Production
CLARE OAKS: Files for Chapter 11 Bankruptcy Protection
CLARE OAKS: Case Summary & 20 Largest Unsecured Creditors
CLEAN TRANSPORTATION: Posts $207,500 Net Loss in Third Quarter
CN DRAGON: Posts $43,800 Net Loss in Sept. 30 Quarter
COMPETITIVE TECHNOLOGIES: Joseph Finley Holds 5.8% Equity Stake
COMSTOCK RESOURCES: S&P Alters Outlook on 'BB-' Rating to Negative
CONESTOGA NEWS: Voluntary Chapter 11 Case Summary
CONSOL ENERGY: Moody's Confirms 'Ba3' Corporate Family Rating
CONSOLIDATION SERVICES: Posts $114,300 Net Loss in Third Quarter
CONSTRUCTION L2: Case Summary & 12 Largest Unsecured Creditors
CONVERSION SERVICES: In Default Under Access Capital Loan Pact
COTTA PROPERTY: Voluntary Chapter 11 Case Summary
CROSSOVER FINANCIAL: Taps Matt Call as to Market Colorado Property
CYBER OPERATIONS: Case Summary & 20 Largest Unsecured Creditors
DALLAS HIGH: Case Summary & 8 Largest Unsecured Creditors
DE TECHNOLOGIES: Case Summary & 5 Largest Unsecured Creditors
DESERT OASIS: Amends Plan to Include Laundry Room Lease Assumption
DESSOUKY BUSINESS: Case Summary & 12 Largest Unsecured Creditors
DETROIT, MI: Moody's Reviews Ba3 Debt Rating for Downgrade
DHILLON GROUP: Case Summary & 20 Largest Unsecured Creditors
DOMINION CLUB: HHHunt to Present Reorganization Plan on Dec. 14
DZF PROPERTIES: Hires Charles B. Greene as Counsel
DZF PROPERTIES: Sec. 341 Creditors' Meeting on Wednesday
DZF PROPERTIES: Status Conference Set for Jan. 6
ENTRANCE AT LAKEWAY: Case Summary & 20 Largest Unsecured Creditors
ENVIRO VORAXIAL: Posts $556,100 Net Loss in Third Quarter
EQUITABLE OF IOWA: Moody's Cuts 'Ba1' Preferred Stock Rating
EVERGREEN ENERGY: Issues Arise Over Southern Coal Joint Venture
EXPRESS INC: S&P Puts 'BB-' Corp. Credit Rating on Watch Positive
FILENE'S BASEMENT: Shareholders Want Bid to Disband Panel Nixed
FILENE'S BASEMENT: Hires WeiserMazars LLP as Tax Provider
FILENE'S BASEMENT: Hires Conaway Stargatt as Conflicts Counsel
FILENE'S BASEMENT: Syms Group Fights Bid for Disbandment
FIRST FOLIAGE: Wants Reorganization Case Converted to Chapter 7
FRIENDLY ICE CREAM: Creditors Fight Sun Capital Claim
FRIO CANYON: Voluntary Chapter 11 Case Summary
FUEL DOCTOR: Posts $760,800 Net Loss in Third Quarter
FURNITURE BY THURSTON: Final Cash Collateral Hearing Today
GALP CYPRESS: Case Summary & 20 Largest Unsecured Creditors
GBB5 INC: Case Summary & 7 Largest Unsecured Creditors
GELT PROPERTIES: Committee Objects to Foreclosure of Real Property
GELT PROPERTIES: Lender Wants Adequate Security on Sale, Cash Use
GENMED HOLDINGS: Board Approves Dismissal of Meyler & Company
GEO POINT: Posts $390,700 Net Loss in Sept. 30 Quarter
GETTY PETROLEUM: Court Grants Joint Administration of Cases
GLASSCOCK STREET: Case Summary & Largest Unsecured Creditor
GOLDEN NUGGET: S&P Raises Corporate Credit Rating to 'B-'
GRAY TELEVISION: Zell Miller Retires from Board of Directors
GREAT HEART: Voluntary Chapter 11 Case Summary
GSW HOLDINGS: Files Amended Schedules of Assets and Liabilities
HANNAH P.: Case Summary & 5 Largest Unsecured Creditors
HD SUPPLY: Incurs $105 Million Net Loss in Oct. 30 Quarter
HIGH PLAINS GAS: Posts $11 Million Net Loss in Third Quarter
HORIZON LINES: Seven New Directors Appointed to Committees
HORIZON LINES: Stockholders OK 1-for-25 Reverse Stock Split
HOSPITALITY ASSET: Voluntary Chapter 11 Case Summary
HSW INTERNATIONAL: Posts $2.1 Million Net Loss in Third Quarter
HWI GLOBAL: Posts $356,900 Net Loss in Third Quarter
IMPERIAL PETROLEUM: Greg Thagard Appointed as Board Chairman
IMPERIAL INVESTMENT: Voluntary Chapter 11 Case Summary
IMPERIAL RESOURCES: Posts $314,200 Net Loss in Sept. 30 Quarter
INCOMING INC: Posts $878,700 Net Loss in Third Quarter
INSTACARE CORP: Posts $441,800 Net Loss in 2011 Third Quarter
JBI INC: Posts $3.7 Million Net Loss in Third Quarter
JETT RACING: Case Summary & 20 Largest Unsecured Creditors
JEWISH COMMUNITY CENTER: Files for Chapter 11 Bankruptcy
JUST MARSE: Case Summary & 5 Largest Unsecured Creditors
KV PHARMACEUTICAL: Reports $271MM Fiscal 2011 Loss in Form 10-K/A
L.A. DODGERS: Gets OK to Market Media Rights Over Fox Protest
L.A. DODGERS: To Pay $1.1 Million Critical Vendors Claims
LAGUNA RESOURCES: Case Summary & 20 Largest Unsecured Creditors
LANDINGS INVESTMENT: Case Summary & 20 Largest Unsecured Creditors
LEHMAN BROTHERS: Readies $1.33BB to Buy Banks' Stake in Archstone
LEHMAN BROTHERS: UBS Fraudulently Hawked Notes, Says Vernon Healy
LENNY DYKSTRA: Court Denies TRO Request Over Twitter Account
LIN TELEVISION: Moody's Assigns Ba3 Rating to Proposed Term Loan
LIN TV: S&P Affirms 'B' Corporate Rating After New Loan
LIQUIDMETAL TECHNOLOGIES: Choi Kim Resigns as Accountants
LPATH INC: Files Form S-1 Registration Statement
MAGUIRE GROUP: Court OKs Berger Singerman, PA as Counsel
MAGUIRE GROUP: U.S. Trustee Unable to Form Committee
MANISTIQUE PAPERS: May Complete Reorganization by March 2012
MARPECH INVESTMENT: Voluntary Chapter 11 Case Summary
MASTER SILICON: Lin Han to Resign as Chief Financial Officer
MC2 CAPITAL: Sec. 341 Creditors' Meeting Set for Jan. 6
MEDIA GENERAL: Timothy Mulvaney to Assume CAO Role
MEDLINK INTERNATIONAL: Signs Forbearance Pact with Investors
MERCANTILE BANCORP: Suspending Filing of Reports with SEC
METAL FOUNDATIONS: Shaner Capital Buys Firm Out Bankruptcy
MF GLOBAL: R.J. O'Brien CEO Corcoran Testifies
MF GLOBAL: CME Group's Duffy Appears Before House Committee
MIDWEST GAMING: S&P Puts 'B' Corp. Rating on Watch Positive
MINE RECLAMATION: Taps Sharon Z. Weiss as Non-Resident Attorney
MONMOUTH PLANTATION: Files for Chapter 11 Bankruptcy Protection
MONTANA ELECTRIC: Lee A. Freeman Approved as Chapter 11 Trustee
MONTANA ELECTRIC: U.S. Trustee Forms Creditors Committee
MUSCLEPHARM CORP: TSX Agrees to Buy 42-Mil. Shares for $375,000
NAVISTAR INTERNATIONAL: Navistar Financial Renews Bank Facility
NAVISTAR INTERNATIONAL: Icahn OKs Possible Merger with Oshkosh
NEONODE INC: Selling 4 Million Common Shares at $4.00 Apiece
NEVADA CANCER: Judge Expedites Plan to Sell Asset in January
NEW LIFE: Meeting to Form Creditors' Panel on Dec. 15
NEWPAGE CORP: Court Asked to Reconsider Denial of Panel Hirings
NEXSTAR BROADCASTING: Names Rick Rogala as SVP of Sales
NORTHCORE TECHNOLOGIES: Supports GE Capital United Way Campaign
NORTHERN BERKSHIRE: Bankruptcy Filing Cues Fitch to Drop LT Rating
NORTHAMPTON GENERATING: Defaults on $153 Million Senior Bonds
NORTHAMPTON GENERATING: Case Summary & Creditors List
NORTHLAKE STORAGE: Case Summary & 4 Largest Unsecured Creditors
NORTHWEST PARTNERS: Wants to Use Berkadia Cash Collateral
NORTHWEST PARTNERS: Taps Alan Smith Law Firm as Counsel
NORTHWEST PARTNERS: Sec. 341 Creditors' Meeting Set This Afternoon
OPPENHEIMER PARTNERS: To File Full-Payment Plan, Seeks Cash Use
OPPENHEIMER PARTNERS: Sec. 341 Creditors' Meeting Set for Jan. 3
ORANGE COUNTY: S&P Lowers Rating on Housing Revenue Bonds to 'B+'
OVERSEAS SHIPHOLDING: Moody's Lowers CFR to B3; Outlook Negative
PACIFIC MONARCH: Wins Court Approval to Auction its Assets
PALMVIEW CROSSING: Case Summary & 15 Largest Unsecured Creditors
PALM HARBOR: Emerges From Chapter 11 Bankruptcy
PENINSULA HOSPITAL: Board Member Offers $5MM Replacement Loan
PENINSULA HOSPITAL: Taps Alvarez & Marsal as Financial Advisors
PENINSULA HOSPITAL: Court OKs Nixon Peabody as Special Counsel
PERKINS & MARIE: Plan of Reorganization Declared Effective
PETTERS COMPANY: Trustee Taps Boies Schiller as Special Counsel
PINNACLE AIR: Seeks Loan Term, CBA Changes to Improve Liquidity
PRECISION PARTS: Plan of Liquidation Declared Effective
PRESSURE BIOSCIENCES: NASDAQ Grants Request for Continued Listing
QUADRA FNX: Moody's Changes Outlook on Ratings to Developing
QUADRA FNX: S&P Puts B+ Corp. Credit Rating on Watch Developing
QUANTUM FUEL: Incurs $8.4 Million Net Loss in Oct. 31 Quarter
QUEENS MEWS SOUTH: Case Summary & Largest Unsecured Creditor
QUEENS MEWS WEST: Case Summary & Largest Unsecured Creditor
ROCK POINTE HOLDINGS: Financial Schedules Due Dec. 16
ROUND TABLE: Judge Clears Firm to Exit Bankruptcy Protection
ROUNDY'S SUPERMARKETS: S&P Puts 'B' Credit Rating on Watch Pos.
ROYSTER ENTERPRISES: Case Summary & 20 Largest Unsecured Creditors
RUDEN MCCLOSKY: Greenspoon Sale an "Innovation"
SACRED HEART: Moody's Withdraws 'Ca' Bond Rating
SAN TAN PIZZA: Voluntary Chapter 11 Case Summary
SEARCHMEDIA HOLDINGS: Executives & Directors Increase Ownership
SHYONA INC: Minesh Patel Buys 102-Unit Hotel for $2.5 Million
SHUANEY IRREVOCABLE: Sec. 341 Creditors' Meeting Set for Jan. 20
SMART-TEK SOLUTIONS: Purchase Pact with American Marine Replaced
SNOKIST GROWERS: Food-Safety Issues, Financing Woes Prompt Ch.11
SNOKIST GROWERS: Case Summary & 20 Largest Unsecured Creditors
SOLYNDRA LLC: White House Denies Cherry-Picking Docs
SP NEWSPRINT: U.S. Trustee Appoints 7-Member Creditors' Panel
SP NEWSPRINT: Court OKs GCG Inc. as Claims & Notice Agent
SRE INVESTMENTS: Case Summary & 7 Largest Unsecured Creditors
ST. JAMES: Case Summary & 20 Largest Unsecured Creditors
ST. PAUL: Voluntary Chapter 11 Case Summary
STRAWMEN, LP: Case Summary & 9 Largest Unsecured Creditors
SUMMER VIEW: Court OKs Karasik Law Group as Bankruptcy Counsel
SUPERIOR HOTELS: Case Summary & 6 Largest Unsecured Creditors
TEN SAINTS: Court OKs Susan Ernst as Valuation Expert
TERRESTAR NETWORKS: Files Revised Joint Chapter 11 Plan
TITANIUM GROUP: Reports HK$3 Million Net Income in Third quarter
TMP DIRECTIONAL: Wants to Use Cash Collateral to Fund Wind-Down
TMP DIRECTIONAL: To Sell Medical Listings Biz to ABMS for $4MM
TMP DIRECTIONAL: Hires Epiq as Claims and Notice Agent
TMP DIRECTIONAL: Rejects Leases for Vacant Office Spaces
TOPSPIN MEDICAL: Posts NIS822,000 Net Loss in Third Quarter
TRAILER BRIDGE: US Trustee Forms Three-Member Creditor's Committee
TRAILER BRIDGE: Claims Bar Date Hearing on Dec. 14
TRAILER BRIDGE: Business As Usual While in Chapter 11
ULTIMATE ESCAPES: Amended Ch. 11 Liquidation Plan Confirmed
VON ESSEN: Patron, Halcyon Buy 7 Hotels For GBP38 Million
USEC INC: Mary Pat Salomone Elected to Board to Fill Vacancy
VALLEY FORGE: Posts $423,700 Net Loss in Third Quarter
VILLA D'ESTE: Hires Elaine Etingoff as Bankruptcy Counsel
VITRO SAB: Judge Deals Blow, Says Bonds Governed By N.Y. Law
VOICE ASSIST: Posts $1.3 Million Net Loss in Third Quarter
WARNER MUSIC: Incurs $206 Million Net Loss in Fiscal 2011
WASHINGTON MUTUAL: May Reach Plan Accord Today, Counsel Says
WESTERN REFINING: S&P Raises Senior Secured Debt Rating to 'B+'
WOODMONT SHOPPING: Voluntary Chapter 11 Case Summary
ZALE CORP: Incurs $31.8 Million Net Loss in October 31 Quarter
ZALE CORP: Seven Directors Elected at Annual Meeting
* Blogger Can't Duck $2.5MM Verdict in Obsidian Case
* Fitch Reports Annual Outlook on U.S. Technology Sector
* Karyl Van Tassel Joins PwC as Advisory Forensics Practice Leader
* Attorney Jeremy Colvin Joins McDonald Hopkins
* BOND PRICING -- For Week From Dec. 5 - Dec. 9, 2011
*********
261 EAST: Case Summary & 12 Largest Unsecured Creditors
-------------------------------------------------------
Debtor: 261 East 78 Realty Corporation
80 Park Avenue, Suite 10N
New York, NY 10016
Bankruptcy Case No.: 11-15624
Chapter 11 Petition Date: December 6, 2011
Court: U.S. Bankruptcy Court
Southern District of New York (Manhattan)
Judge: Robert E. Gerber
Debtor's Counsel: Dan Shaked, Esq.
SHAKED & POSNER
255 W. 36th Street, 8th Floor
New York, NY 10018
Tel: (212) 494-0035
Fax: (646) 367-4951
E-mail: dan@shakedandposner.com
Scheduled Assets: $20,211,417
Scheduled Debts: $18,757,664
The petition was signed by Lee Moncho, president.
Debtor's List of Its 12 Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
------ --------------- ------------
Chris Georgoulis Legal Fees $500,000
Georgoulis & Assoc.
120 Wall Street, Floor 18
New York, NY 10005
John Newhouse Legal Fees $500,000
Newhouse & Shey LLP
3 W 35th Street, Floor 9
New York, NY 10001
Jack Finnell Personal Loan $340,000
36 Sampson Avenue
Milford, CT 06460
Dean Moncho Personal Loan $150,000
GCP Capital Group LLC Commissions $100,000
Start Elevators Trade Debt $15,000
Corcoran Wexler Healthcare Prop Commissions $11,393
NYC Realty Boutique LLC Commissions $11,393
Port America Trade Debt $5,830
Solo Construction Services Trade Debt $5,200
W Services Trade Debt $4,758
Waldners Business Environment Trade Debt $1,441
3 G PROPERTIES: Wants Until Dec. 15 to Solicit Plan Acceptances
---------------------------------------------------------------
3 G Properties, LLC, asks the U.S. Bankruptcy Court for the
Eastern District of North Carolina to extend until Dec. 15, 2011,
its exclusive period to solicit acceptances for its proposed
Chapter 11 Plan.
The Debtor relates that it needs more time to accommodate the
Court's pending considerations of confirmation of the Debtor's
Plan, as amended.
The Debtor filed its Amended And Restated Plan of Liquidation on
Nov. 3, 2011 and its Second Amended Disclosure Statement on
Nov. 3. The confirmation hearing was scheduled for Dec. 5.
As reported in the Sept. 8, 2011 edition of the Troubled Company
Reporter, the Debtor has already presented to the Court a proposed
plan but the plan was denied.
On July 12, 2011, the bankruptcy judge denied confirmation of the
Chapter 11 Plan, filed on Dec. 13, 2010, on the basis that "the
court does not foresee any change in the Debtor's circumstances
that would allow it to propose a plan to cure the defects
identified."
About 3 G Properties
Wake Forest, North Carolina-based 3 G Properties, LLC, filed for
Chapter 11 bankruptcy (Bankr. E.D.N.C. Case No. 10-04763) on
June 14, 2010. 3 G Properties is a North Carolina limited
liability company formed as a result of the statutory merger of
three existing North Carolina limited liability companies: Lake
Glad Road Partners, LLC, Lake Glad Road Commercial, LLC, and
Granville Park Partners, LLC. The Debtor principally operates two
real estate projects located primarily in Granville County, North
Carolina: Triangle North Development and Highland Trails
Development.
Gregory B. Crampton, Esq., and Kevin L. Sink, Esq., at Nicholls &
Crampton, P.A., in Raleigh, N.C., represent the Debtor in its
restructuring effort. The Company estimated its assets and debts
at $10 million to $50 million as of the Petition Date.
3661 PRESIDENTIAL: Case Summary & 2 Largest Unsecured Creditors
---------------------------------------------------------------
Debtor: 3661 Presidential Parkway, LLC
5351 Royal Woods Pkwy
Tucker, GA 30084
Bankruptcy Case No.: 11-84846
Chapter 11 Petition Date: December 5, 2011
Court: United States Bankruptcy Court
Northern District of Georgia (Atlanta)
Judge: Joyce Bihary
Debtor's Counsel: A. Keith Logue, Esq.
LAW OFFICE OF A. KEITH LOGUE
3423 Weymouth Ct.
Marietta, GA 30062
Tel: (770) 321-5750
Fax: (770) 321-5751
E-mail: keith@logue-law.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $0 to $50,000
A list of the Company's two largest unsecured creditors filed
together with the petition is available for free at
http://bankrupt.com/misc/ganb11-84846.pdf
The petition was signed by Sami Durukan, manager.
500 STERLING: Case Summary & 16 Largest Unsecured Creditors
-----------------------------------------------------------
Debtor: 500 Sterling Realty Corp.
19390 Collins Avenue, Unit 706
North Miami Beach, FL 33160
Bankruptcy Case No.: 11-43451
Chapter 11 Petition Date: December 5, 2011
Court: United States Bankruptcy Court
Southern District of Florida (Miami)
Judge: Laurel M. Isicoff
Debtor's Counsel: Michael J. Scaglione, Esq.
SCAGLIONE QUESADA & BON, LLP
2600 Douglas Rd # PH 10
Coral Gables, FL 33134
Tel: (305) 447-0392
E-mail: mscaglione@sqlaw.com
Estimated Assets: $0 to $50,000
Estimated Debts: $1,000,001 to $10,000,000
A list of the Company's 16 largest unsecured creditors filed
together with the petition is available for free at
http://bankrupt.com/misc/flsb11-43451.pdf
The petition was signed by Isaac Levy, president.
AFFINION GROUP: S&P Revises 'B+' Rating Outlook to Negative
-----------------------------------------------------------
Standard & Poor's Ratings Services revised its rating outlook on
Affinion Group Holdings Inc. to negative from stable. Ratings on
the company, including the 'B+' corporate credit rating, were
affirmed.
"The outlook revision reflects the deterioration in Affinion's
credit measures, as debt-financed special dividends in the first
quarter of 2011 were not offset by the contribution from the
January 2011 equity-financed acquisition of online marketing
services company Webloyalty Holdings Inc.," explained Standard &
Poor's credit analyst Hal Diamond.
Affinion has posted minimal organic revenue growth, while
incurring higher operating and legal costs over the past year.
Operating performance has been under pressure partly as a result
of increased marketing and commissions aimed at restoring revenue
growth.
"The 'B+' corporate credit rating on Affinion reflects our view
that leverage will remain high over the intermediate term,
reflecting the company's acquisition-driven growth and
shareholder-return-focused strategy. We consider the company's
business risk profile as 'weak' (as our criteria define the term),
because of continued membership attrition in many of its services,
some affinity partner concentration (especially in the financial
services industry), and competitive pressures in the membership
marketing business. Relatively high leverage and a record of
acquisitions and special dividends underpin our view of Affinion's
financial risk profile as 'highly leveraged.' The company operates
in the direct marketing industry, which we consider mature, and
which relies heavily on ongoing investment in acquiring new
members," S&P said.
"Affinion is a leading direct marketer of membership, insurance,
and credit card ancillary services, primarily sold under the names
of affinity partner institutions, such as financial institutions
and retailers. Revenue from its existing customer base has
historically generated a significant percentage of sales, though
organic growth has been minimal over the past few years,
reflecting weak conditions the financial services industry. Direct
mail, which we view as facing declining fundamentals, remains a
significant marketing channel for the company to acquire new
members. We expect the company to continue to expand its online
marketing efforts, in part because the Internet has become an
increasingly regulated and highly competitive marketing channel,"
S&P stated.
AFFORDABLE BUILDING: Case Summary & 20 Largest Unsecured Creditors
------------------------------------------------------------------
Debtor: Affordable Building Systems, LLC
dba Durra Building Systems
P.O. Box 10
Whitewright, TX 754991
Bankruptcy Case No.: 11-43655
Chapter 11 Petition Date: December 5, 2011
Court: U.S. Bankruptcy Court
Eastern District of Texas (Sherman)
Debtor's Counsel: Donald L. Johnston, Esq.
LAW OFFICE OF DONALD JOHNSTON
306 N. Travis Street, Suite 102
Sherman, TX 75090-9840
Tel: (903) 891-9840
Fax: (903) 891-4051
E-mail: djohnston50@verizon.net
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
The Company?s list of its 20 largest unsecured creditors filed
with the petition is available for free at:
http://bankrupt.com/misc/txeb11-43655.pdf
The petition was signed by John Parker Burg, president.
AIRESURF NETWORKS: D&Os D. Mitchell and G. Brent Leave Posts
------------------------------------------------------------
AireSurf Networks Holdings Inc. disclosed that David Mitchell and
Gregory Brent have resigned as a directors and officers of
Company. The current board of directors consists of Messrs. Chris
Irwin and Kevin Pitt. The company is currently trying to identify
additional directors to allow its board composition to meet the
requirements of applicable corporate and securities laws.
In addition, the trustee in bankruptcy has filed the applicable
documents with the Bankruptcy Registrar to allow the Company to
receive a discharge from bankruptcy. The company filed a proposal
under Section 50 of the Bankruptcy and Insolvency Act (Canada) in
September 2010. In connection with the proposal the trustee has
recently distributed 8,130,193 common shares in the capital of
Company to various creditors under the terms of the proposal.
In connection with the distribution of Shares relating to the
proposal Irwin Professional Corporation acquired an additional
2,410,054 Shares. Chris Irwin is the principal of Irwin
Professional Corporation and Mr. Irwin, together is his
associates, own an aggregate of 7,606,272 Shares representing
approximately 13% of the issued and outstanding Shares. Mr. Irwin
also owns, either directly or through associates, 1,032,660
warrants to purchase Shares. If Mr. Irwin, and his associates
were to exercise all of their respective convertible securities
they would have, on a partially diluted basis, ownership over
8,638,932 Shares, representing approximately 14.7% of the then
outstanding Shares. The securities were acquired for investment
purposes and each of the Mr. Irwin and his associates may increase
or decrease their respective ownership position in the future.
Mr. Irwin is an insider of the Company and the Company is relying
on exemptions from the formal valuation and minority shareholder
approval requirements of Multilateral Instrument 61-101 as the
proposal is a transaction subject to court approval under the
Bankruptcy and Insolvency Act (Canada) and due to the fact that
the Shares are listed on the CNSX. A material change report in
connection with the proposal will be filed less than 21 days
before distribution of the Shares in connection with the proposal
due to the fact that the bankruptcy process is dictated by the
trustee and outside the control of the Company.
The Company continues to work with Avrev Canada Inc. to raise the
requisite funds to advance the purchase by the Company of
proprietary security and sensor applications from Avrev, as
approved by the shareholders of the Company at its annual and
special meeting held on June 9, 2011.
About AireSurf Networks
In April 2011, AireSurf Networks Holdings Inc. disclosed that it
has issued to various creditors an aggregate of 8,130,193 common
shares in the capital of the Company, in accordance with its
bankruptcy proposal made on Sept. 22, 2010, and approved by the
Ontario Superior Court of Justice in Bankruptcy and Insolvency on
Nov. 15, 2010.
Risman & Zysman Inc., the Company's trustee in bankruptcy, will
distribute the shares to the creditors of the Company who filed
valid proof of claims in connection with the Proposal.
AireSurf has 58,447,789 shares outstanding.
Under the terms of the proposal filed by Risman & Zysman Inc.,
trustee in bankruptcy, each unsecured creditor of the Company is
to receive one common share in the capital of the Company for
every $0.05 of indebtedness.
Ontario, Canada-based Airesurf Networks is a researcher, designer
and manufacturer of digital communication amplifiers. The
MegaFI(TM) System extends the range, coverage and throughput
capacity of WiFi access points without signal degradation.
ALABAMA HOUSING: S&P Raises Series 2003F Bond Rating From 'BB+'
---------------------------------------------------------------
Standard & Poor's Ratings Services raised its long-term rating on
Alabama Housing Finance Authority's (Village Green Apartments
Project) multifamily housing revenue bonds series 2003F three
notches to 'AA+' from 'BB+'. The outlook is negative. The bonds
are secured by a Fannie Mae credit facility.
The rating reflects that of the sovereign rating of the United
States (AA+/Negative).
"Should the sovereign rating on the United States be upgraded to
'AAA' and the bond program meet all criteria commensurate with an
'AAA' rating, the rating on the bonds will be upgraded," said
Standard & Poor's credit analyst Renee J. Berson.
"Standard & Poor's has analyzed updated cash flow statements,
based on a zero reinvestment assumption for all scenarios as set
forth in the related criteria articles. We believe the cash flow
projections, assuming no reinvestment earnings, indicate that
there will be sufficient revenues to pay regularly scheduled debt
service through bond maturity of March 1, 2036. In the event
that the security prepays, we expect there to be sufficient assets
to cover the reinvestment risk based on the 15-day minimum notice
period required for special redemptions. The borrower has entered
into an agreement to pay rebate fees directly so that sufficient
cash flow would be available to pay bondholders," S&P said.
ALLIED IRISH: Does Not Require Add'l Capital, EBA Confirms
----------------------------------------------------------
Allied Irish Banks, p.l.c. has published the results of the EU-
wide stress testing exercise co-ordinated by the European Banking
Authority under the supervision of the Central Bank of Ireland.
The published results confirm that AIB does not require any
additional capital. AIB has been recapitalised to meet the
requirements of the Prudential Capital Assessment Review set by
the CBI in March 2011 and is required to maintain a minimum Core
Tier 1 ratio of 10.5% on an ongoing basis.
To view the published results including the EBA disclosure
templates for AIB, click:
http://www.rns-pdf.londonstockexchange.com/rns/6565T_1-2011-12-
8.pdf
About Allied Irish Banks
Allied Irish Banks, p.l.c. -- http://www.aibgroup.com/-- is a
major commercial bank based in Ireland. It has an extensive
branch network across the country, a head office in Dublin and a
capital markets operation based in the International Financial
Services Centre in Dublin. AIB also has retail and corporate
businesses in the UK, offices in Europe and a subsidiary company
in the Isle of Man and Jersey (Channel Islands).
Since the onset of the global and Irish financial crisis, AIB's
relationship with the Irish Government has changed significantly.
As at Dec. 31, 2010, the Government, through the National Pension
Reserve Fund Commission ("NPRFC"), held 49.9% of the ordinary
shares of the Company (the share of the voting rights at
shareholders' general meetings), 10,489,899,564 convertible non-
voting ("CNV") shares and 3.5 billion 2009 Preference Shares. On
April 8, 2011, the NPRFC converted the total outstanding amount of
CNV shares into 10,489,899,564 ordinary shares of AIB, thereby
increasing its holding to 92.8% of the ordinary share capital.
In addition to its shareholders' interests, the Government's
relationship with AIB is reflected through formal and informal
oversight by the Minister and the Department of Finance and the
Central Bank of Ireland, representation on the Board of Directors
(three non-executive directors are Government nominees),
participation in NAMA, and otherwise.
As reported by the TCR on May 31, 2011, KPMG, in Dublin, Ireland,
noted that there are a number of material economic, political and
market risks and uncertainties that impact the Irish banking
system, including the Company's continued ability to access
funding from the Eurosystem and the Irish Central Bank to meet its
liquidity requirements, that raise substantial doubt about the
Company's ability to continue as a going concern.
The Company reported a net loss of EUR10.16 billion on
EUR1.84 billion of interest income for 2010, compared with a net
loss of EUR2.33 billion on $2.87 billion of interest income for
2009.
The Company's balance sheet at June 30, 2011, showed
EUR126.87 billion in total assets, EUR120.01 billion in total
liabilities, and EUR6.86 billion in total shareholders' equity
including non-controlling interests.
AMBAC FINANCIAL: Judge Tosses Out Depfa Bank's Claim
----------------------------------------------------
Dow Jones' Daily Bankruptcy Review reports that a bankruptcy judge
disallowed a German-Irish bank's $2 billion claim against bond
insurer Ambac Financial Group Inc., which is trying to emerge from
bankruptcy.
About Ambac Financial
Ambac Financial Group, Inc., headquartered in New York City, is a
holding company whose affiliates provided financial guarantees and
financial services to clients in both the public and private
sectors around the world.
Ambac Financial filed a voluntary petition for relief under
Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D.N.Y. Case No.
10-15973) in Manhattan on Nov. 8, 2010. Ambac said it will
continue to operate in the ordinary course of business as "debtor-
in-possession" under the jurisdiction of the Bankruptcy Court and
in accordance with the applicable provisions of the Bankruptcy
Code and the orders of the Bankruptcy Court.
Ambac's bond insurance unit, Ambac Assurance Corp., did not file
for bankruptcy. AAC is being restructured by state regulators in
Wisconsin. AAC is domiciled in Wisconsin and regulated by the
Office of the Commissioner of Insurance of the State of Wisconsin.
The parent company is not regulated by the OCI.
Ambac's consolidated balance sheet -- which includes non-debtor
Ambac Assurance Corp -- showed US$30.05 billion in total assets,
US$31.47 billion in total liabilities, and a US$1.42 billion
stockholders' deficit, at June 30, 2010.
On an unconsolidated basis, Ambac said in a court filing that
it has assets of (US$394.5 million) and total liabilities of
US$1.6826 billion as of June 30, 2010.
Bank of New York Mellon Corp., as trustee to seven different types
of notes, is listed as the largest unsecured creditor, with claims
totaling about US$1.62 billion.
Peter A. Ivanick, Esq., Allison H. Weiss, Esq., and Todd L.
Padnos, Esq., at Dewey & LeBoeuf LLP, serve as the Debtor's
bankruptcy counsel. The Blackstone Group LP is the Debtor's
financial advisor. Kurtzman Carson Consultants LLC is the claims
and notice agent. KPMG LLP is tax consultant to the Debtor.
Anthony Princi, Esq., Gary S. Lee, Esq., and Brett H. Miller,
Esq., at Morrison & Foerster LLP, in New York, serve as counsel
to the Official Committee of Unsecured Creditors. Lazard Freres
& Co. LLC is the Committee's financial advisor.
Bankruptcy Creditors' Service, Inc., publishes Ambac Bankruptcy
News. The newsletter tracks the Chapter 11 proceeding undertaken
by Ambac Financial Group and the restructuring proceedings of
Ambac Assurance Corp. (http://bankrupt.com/newsstand/or 215/945-
7000).
AMERICAN DEFENSE: Posts $1.6 Million Net Loss in Third Quarter
--------------------------------------------------------------
American Defense Systems, Inc., filed its quarterly report on Form
10-Q, reporting a net loss of $1.6 million on contract revenues
earned of $2.6 million, compared with a net loss of $395,271 on
contract revenues earned of $7.3 million for the comparable period
of 2010.
The Company recorded losses from discontinued operations of
$14,270 and $139,868 for the three months ended Sept. 30, 2011,
and 2010, respectively.
For the nine months ended Sept. 30, 2011, the Company has reported
net income of $8.6 million on contract revenues earned of
$7.0 million, compared with a net loss of $4.9 million on contract
revenues earned of $27.3 million for the same period last year.
The Company recorded a gain on the redemption of the Series A
Preferred of $12.8 million for the nine months ended Sept. 30,
2011.
The Company recorded income from discontinued operation of
$2.5 million which included a gain on the sale of American
Physical Security Group, LLC ("APSG") of $2.9 million for the nine
months ended Sept. 30, 2011. The Company recorded a loss from
discontinued operation of $660,061 for the nine months ended
Sept. 30, 2010.
The Company's balance sheet at Sept. 30, 2011, showed $3.9 million
in total assets, $4.9 million in total liabilities, and a
stockholders' deficit of $1.0 million.
As reported in the TCR on April 26, 2011, Marcum LLP, in Melville,
New York, expressed substantial doubt about American Defense
Systems' ability to continue as a going concern, following the
Company's 2010 results. The independent auditors noted that as of
Dec. 31, 2010, the Company had a working capital deficiency of
$14.1 million, an accumulated deficit of $26.3 million, a
shareholders' deficiency of $9.8 million and cash on hand of
$428,160.
A complete text of the Form 10-Q is available for free at:
http://is.gd/mKY9I5
About American Defense
Hicksville, N.Y.-based American Defense Systems, Inc., is a
defense and security products company engaged in three business
areas: customized transparent and opaque armor solutions for
construction equipment and tactical and non-tactical transport
vehicles used by the military; architectural hardening and
perimeter defense, such as bullet and blast resistant transparent
armor, walls and doors. The Company also operates the American
Institute for Defense and Tactical Studies. The Company is in the
process of negotiating a sale or disposal of the portion of its
business related to the operation of a live-fire interactive
tactical training range location in Hicksville, N.Y. The portion
of the Company's business related to vehicle anti-ram barriers
such as bollards, steel gates and steel wedges that deploy out of
the ground was sold as of March 22, 2011.
AMERICAN LASER: Wins Interim Approval of Chapter 11 Loan
--------------------------------------------------------
Dow Jones' DBR Small Cap reports that American Laser Centers LLC
Friday won interim court approval to tap $13 million worth of
emergency bankruptcy financing amid questions from a major
supplier about the circumstances of the company's Chapter 11
filing.
About American Laser Centers
ALC Holdings LLC dba American Laser Centers operates 156 laser
hair-removal clinics in 27 states. At the peak, the Farmington
Hills, Michigan-based company had 222 stores generating $130.6
million in annual revenue.
ALC Holdings, along with its affiliates, filed a Chapter 11
bankruptcy petition (Bankr. D. Del. Lead Case No. 11-13853) on
Dec. 8, 2011.
The Debtor aims to sell the business to an affiliate of Versa
Capital Management LLC. Versa will pay $30 million plus $18
million of new-money financing to support the bankruptcy, unless
outbid at auction. A hearing to approve the sale is intended to
be held by Jan. 26.
Bankruptcy was blamed on over-expansion, the effects of the
recession and an "overleveraged balance sheet."
Assets are $80.4 million. Liabilities include $40.3 million owing
on a first-lien debt and $51 million in subordinated notes. Some
$17.9 million is owing to trade suppliers.
Versa is providing $58 million in financing for the Chapter 11
case, including $18 million of fresh cash. The remainder will pay
off the existing first-lien loan.
ALC HOLDINGS: Case Summary & 30 Largest Unsecured Creditors
-----------------------------------------------------------
Debtor: ALC Holdings LLC
dba American Laser Centers
American Laser Skincare
24555 Hallwood Court
Farmington Hills, MI 48335
Bankruptcy Case No.: 11-13853
Affiliates that simultaneously sought Chapter 11 protection:
Debtor Case No.
------ --------
ALC Holdings LLC 11-13853
American Laser Centers LLC 11-13854
ALC HC, Inc. 11-13855
ALC of Alabama LLC 11-13856
ALC of Arizona LLC 11-13857
ALC of Colorado LLC 11-13858
ALC of Connecticut LLC 11-13859
ALC of Georgia LLC 11-13860
ALC of Florida 11-13861
ALC of Indiana LLC 11-13862
ALC of Illinois LLC 11-13863
ALC of Iowa LLC 11-13864
ALC of Kansas LLC 11-13865
ALC of Louisiana LLC 11-13866
ALC of Massachusetts LLC 11-13867
ALC of Michigan LLC 11-13868
ALC of Minnesota LLC 11-13869
ALC of Missouri LLC 11-13870
ALC of Nevada LLC 11-13871
ALC of New York LLC 11-13872
ALC of North Carolina LLC 11-13873
ALC of South Carolina LLC 11-13874
ALC of Pennsylvania LLC 11-13875
ALC of Tennessee LLC 11-13876
ALC of Texas LLC 11-13877
ALC of Utah LLC 11-13878
ALC of Virginia LLC 11-13879
ALC of Washington LLC 11-13880
ALC of Wisconsin LLC 11-13881
ALC Products, LLC 11-13882
American Laser Centers of 11-13883
California LLC
American Laser Centers of 11-13884
Puerto Rico LLC
ALC Licensor, LLC 11-13885
Chapter 11 Petition Date: December 8, 2011
About the Debtors: American Laser Centers LLC provides laser hair
removal treatments.
Court: U.S. Bankruptcy Court
District of Delaware (Delaware)
Judge: Mary F. Walrath
Debtors' Counsel: Adam G. Landis, Esq.
LANDIS RATH & COBB LLP
919 Market Street, Suite 1800
Wilmington, DE 19801
Tel: (302) 467-4400
Fax: (302) 467-4450
E-mail: landis@lrclaw.com
- and ?
Kerri K. Mumford, Esq.
LANDIS RATH & COBB LLP
919 Market Street, Suite 1800
Wilmington, DE 19801
Tel: (302) 467-4414
Fax: (302) 467-4450
E-mail: mumford@lrclaw.com
Debtors'
Claims Agent: BMC GROUP INC.
Debtors'
Financial
Advisors: SSG CAPITAL ADVISORS, LLC
Debtors'
Restructuring
Crisis Manager: TRAVERSE, LLC
Total Assets: $80.4 million as of Oct. 31, 2011
Total Liabilities: Include $40.3 million owing on a first-lien
debt, $51 million in subordinated notes, and
$17.9 million is owing to trade suppliers.
The petitions were signed by Andrew Orr, chief financial officer &
VP corporate operations.
List of Debtors' 30 Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
------ --------------- ------------
Integrated Media Solutions Accounts Payable $1,980,423
650 Fifth Avenue, 35th Floor
New York, NY 10019-6108
Glancy Binkow & Goldberg, LLP Open Litigation $1,900,000
1801 Avenue of the Stars, Suite 311
Los Angeles, CA 90067
New York State Department of Tax $978,488
Taxation and Finance
Buffalo District ? Lisa Fabian
877 Broadway, Suite 112
Buffalo, NY 14203
Bowman and Brooke LLP Accounts Payable $675,681
NW 5834 Addr
P.O. Box 1450
Minneapolis, MN 55485-5834
Blue Cross Blue Shield of Illinois Accounta Payable $535,273
300 East Randolph
Chicago, IL 60601-5099
Steve Strauss Payroll $519,583
4845 E. Cliff Road
Port Clinton, OH 43452
Allergan USA, Inc. Accounts Payable $459,891
12975 Collections Center Drive
Chicago, IL 60693
Strategic Executive Services, LLC Accounts Payable $386,480
7755 Montgomery Road, Suite 180
Cincinnati, OH 45236
Joseph P. Day Realty Corp. Lease $352,744
9 East 40th Street, 8th Floor
New York, NY 10016
SignatureSpecialists Accounts Payable $347,675
60 Revere Drive
Northbrook, IL 60062
Physician Sales & Service Inc. Accounts Payable $336,743
P.O. Box 550988
Jacksonville, FL 32255
Sidley Austin LLP Accounts Payable $329,776
P.O. Box 0642
Chicago, IL 60690
Nixon Peabody LLP Accounts Payable $302,766
P.O. Box 28012, 46th Floor
New York, NY 10087-8012
uRefer LLC Accounts Payable $294,400
912 N. Main, Lower Level
Ann Arbor, MI 48104
Rudy COlombini Lease $262,295
835 Hyde Street
San Francisco, CA 94109
Media Whiz Holdings, LLC Accounts Payable $239,075
Arden Realty Limited Partnership Lease $210,441
Medical Center West, L.L.C. Lease $191,867
Brighton Hill Properties Lease $181,803
GE Capital ? Care Credit Accrued Expenses $161,468
Arnstein & Lehr LLP Accounts Payable $160,176
Rivertech Centre Lease $159,647
XO Communications LLC Accounts Payable $148,811
Lincoln Medica, LLC Lease $139,765
RREEF American REIT II Lease $136,000
Downside Risk Professional Lease $135,000
Properties
JANLAW Properties, Inc. Settled ? Prnt O/S $130,000
LDS Holdings Lease $120,000
PNC Accounts Payable $117,814
Essprop of Bloomfield Hills, LLC Lease $109,620
ARCHIMEDES FUNDING: Fitch Cuts Ratings on 3 Note Classes to 'D'
----------------------------------------------------------------
Fitch Ratings has downgraded and withdrawn the ratings of three
classes of notes issued by Archimedes Funding III, Ltd./Corp.
(Archimedes III) as follows:
-- $1,591,235 class D-1 notes downgraded to 'Dsf' from 'Csf' and
withdrawn;
-- $7,319,681 class D-2 notes downgraded to 'Dsf' from 'Csf' and
withdrawn;
-- $5,410,199 class D-3 notes downgraded to 'Dsf' from 'Csf' and
withdrawn.
The transaction's final maturity date occurred on Nov. 29, 2011,
at which time the class D-1, D-2 and D-3 (collectively, class D)
notes each received their full interest payment along with
approximately $3.5 million of principal distributed pro rata. Each
of the class D notes has defaulted since they have not received
their full principal amount by the final maturity date. The
ratings of the class D notes are withdrawn due to the defaults of
these tranches.
Following the final maturity date there was one loan position
remaining in the portfolio, which the trustee subsequently
liquidated for approximately $600 thousand. The proceeds from
this sale were distributed after the final maturity date and were
insufficient to pay off the class D notes. The trustee has
indicated that there will be one final payment date, likely in
January 2012, where a relatively minimal amount of residual
interest proceeds will be distributed.
Archimedes III was a cash flow collateralized debt obligation
(CDO) that closed on Nov. 2, 1999 and was managed by West Gate
Horizon Advisors, LLC.
AS SEEN ON TV: Posts $12.1 Million Net Loss in Sept. 30 Quarter
---------------------------------------------------------------
As Seen On TV, Inc., formerly H&H Imports, Inc., filed its
quarterly report on Form 10-Q, reporting a net loss of
$12.1 million on $258,495 of revenues for the three months ended
Sept. 30, 2011, compared with net income of $594,154 on $292,933
of revenues for the three months ended Sept. 30, 2010.
The Company recognized warrant revaluation income of $1.8 million
for the three months ended Sept. 30, 2010.
For the six months ended Sept. 30, 2011, the Company has reported
a net loss of $12.4 million on $744,383 of revenues, compared with
a net loss of $239,821 on $457,231 of revenues for the six months
ended Sept. 30, 2010.
The Company's balance sheet at Sept. 30, 2011, showed $3.5 million
in total assets, $13.9 million in total current liabilities, and
a stockholders' deficit of $10.4 million.
EisnerAmper LLP, in Edison, New Jersey, expressed substantial
doubt about H&H Imports' ability to continue as a going concern,
following the Company's results for the fiscal year ended March
31, 2011. The independent auditors noted that of the Company's
recurring losses from operations and negative cash flows from
operations.
A complete text of the Form 10-Q is available for free at:
http://is.gd/Lc9nNi
Clearwater, Fla.-based As Seen On TV, Inc., is a direct response
marketing company. The Company identifies, develops, and markets
consumer products. The Company's strategy employs three primary
channels: Direct Response Television (Infomercials), Television
Shopping Networks and Retail Outlets.
ASTORIA GENERATING: S&P Lowers $100MM Term Loan Rating to 'CCC'
---------------------------------------------------------------
Standard & Poor's Ratings Services lowered its ratings on Astoria
Generating Co. Acquisitions LLC's (Astoria Gen) $430 million ($141
million outstanding) first-lien term loan due 2013 and its $100
million first-lien ($63 million drawn as of Sept. 30, 2011)
working capital facility due 2012 to 'CCC' from 'CCC+'. The rating
remains on CreditWatch with developing implications. "In addition,
we lowered our rating on the $300 million ($300 million
outstanding) second-lien term bank loan due 2013 to 'D' from 'CCC-
'," S&P said.
The recovery rating of '1' on the first-lien facilities is
unchanged, indicating that lenders can expect a very high (90% to
100%) recovery of their principal in a default scenario. The '5'
recovery rating on the second-lien facility is unchanged,
indicating that lenders can expect a modest recovery (10% to 30%)
if a payment default occurs.
"The Federal Energy Regulatory Commission (FERC) has not yet set a
date for its final determination of the project's complaint. The
CreditWatch with developing implications indicates that we may
raise or lower the ratings based on the proceeding's ultimate
outcome. Furthermore, the project tripped its financial covenants
(maximum leverage) under the first-lien and second-lien credit
agreement for the third quarter as reported Nov. 29, 2011. For
third-quarter 2011, the maximum leverage ratio requirements under
the first and second liens was 5.0x and 6.0x, respectively. The
actual performance was 7.82x. US Power Generating Co. can choose
to cure this trip within 10 days, which ends Friday, Dec. 9, 2011.
However, in our opinion, this cure is unlikely at this point, but
if a cure is affected we will reassess," S&P said.
"On Nov. 28, 2011, the project and the first-lien lenders executed
a forbearance agreement whereby they have agreed to defer from
exercising their rights under the credit agreement against failure
to comply with the financial covenants, such as the breach of the
leverage covenants (for both quarters ending September and
December 2011) and a cross default due to acceleration by
the second-lien lenders. The forbearance agreement will be
effective until Feb. 1, 2012," S&P related.
On Dec 6, 2011, the second-lien lenders gave notice to accelerate
payment of the $300 million principal. Per the terms of the
intercreditor agreement, the second-lien lenders have limited
rights and remedies against the collateral while the first lien is
outstanding. However, they can move to exercise remedies after 180
days.
"The project is evaluating restructuring options that include
selling assets, refinancing, and possibly mothballing or retiring
assets," said Standard & Poor's credit analyst Trevor D'Olier-
Lees.
"The CreditWatch with developing implications reflects the breach
of covenants and the heightened uncertainty regarding future
capacity prices in New York Zone J and that we may raise or lower
the rating, based on the ultimate outcome of the FERC proceeding
and refinancing. If the FERC rules in the project's favor, we
could raise the ratings. We may downgrade the rating if the
opposite occurs," S&P said.
ATLANTIC & PACIFIC: Amends Q3 Form 10-Q for Redacted C&S Deal
-------------------------------------------------------------
On Dec. 6, 2011, The Great Atlantic & Pacific Tea Company has
filed this Amendment No. 1 on Form 10Q/A to amend its Quarterly
Report on Form 10-Q for the quarter ended June 18, 2011, which was
filed with the Securities and Exchange Commission on July 29,
2011.
Confidental treatment was requested for certain portions of the
Supply, Distribution and Related Services Agreement dated May 29,
2011 by and between the Company and C&S Wholesale Grocers, Inc.,
pursuant to a confidental treatment request filed with the
Commission on July 29, 2011.
On Sept. 19, 2011 the SEC delivered to the Company a response
letter in which the SEC requested that the Company re-file the
redacted agreement.
The Company with this Form 10-Q/A a copy of the Supply,
Distribution and Related Services Agreement dated May 29, 2011, by
and between the Company and C&S Wholesale Grocers, Inc.
Confidential treatment has been requested for certain portions of
the Agreement pursuant to a confidential treatment request filed
with the SEC on July 29, 2011. These provisions have been omitted
from the filing and submitted separately to the SEC.
A copy of the Form 10-Q/A is available for free at:
http://is.gd/kdoVbO
A copy of the Supply, Distribution and Related Services Agreement
dated May 29, 2011, is available for free at:
http://is.gd/x6AcON
About Great Atlantic & Pacific
Founded in 1859, Montvale, New Jersey-based Great Atlantic &
Pacific is a supermarket retailer, operating under a variety of
well-known trade names, or "banners" across the mid-Atlantic and
Northeastern United States. Before filing for bankruptcy in 2010,
A&P operated 429 stores in 8 states and the District of Columbia
under the following trade names: A&P, Waldbaum's, Pathmark,
Pathmark Sav-a-Center, Best Cellars, The Food Emporium, Super
Foodmart, Super Fresh and Food Basics. A&P had 41,000 employees
prior to the bankruptcy filing.
A&P and its affiliates filed Chapter 11 petitions (Bankr. S.D.N.Y.
Case No. 10-24549) on Dec. 12, 2010, in White Plains, New York.
In its petition, A&P reported total assets of $2.5 billion and
liabilities of $3.2 billion as of Sept. 11, 2010.
Paul M. Basta, Esq., James H.M. Sprayregen, Esq., and Ray C.
Schrock, Esq., at Kirkland & Ellis, LLP, in New York, and James J.
Mazza, Jr., Esq., at Kirkland & Ellis LLP, in Chicago, Illinois,
serve as counsel to the Debtors. Kurtzman Carson Consultants LLC
is the claims and notice agent. Lazard Freres & Co. LLC is the
financial advisor. Huron Consulting Group is the management
consultant. Dennis F. Dunne, Esq., Matthew S. Barr, Esq., and
Abhilash M. Raval, Esq., at Milbank, Tweed, Hadley & McCloy LLP,
represent the Official Committee of Unsecured Creditors.
A&P obtained court approval for a new contract with C&S Wholesale
Grocers Inc., its principal supplier. The contract is designed to
save A&P $50 million a year when the supermarket operator emerges
from Chapter 11 reorganization.
A&P sold 12 Super-Fresh stores in the Baltimore-Washington area
for $37.83 million, plus the value of inventory. Thirteen other
locations didn't attract buyers at auction and were closed mid-
July 2011.
A&P filed a proposed Chapter 11 plan founded upon a $490 million
debt and equity financing announced this month. The proposed
financing, tentatively approved by the bankruptcy judge, allows
A&P to accept a better offer if one appears. New investors
sponsoring the plan include Yucaipa Cos., Goldman Sachs Group Inc.
and Mount Kellett Capital Management LP.
ATLANTIC & PACIFIC: Has Plan Financing Nod, Formal Union Deals
--------------------------------------------------------------
Dow Jones' Daily Bankruptcy Review reports that a judge cleared
grocery-store operator Great Atlantic & Pacific Tea Co. to make
sweeping changes to dozens of labor contracts that will leave some
of its roughly 36,000 workers with less health-care coverage and
wage cuts of up to 7.5%.
About Great Atlantic & Pacific
Founded in 1859, Montvale, New Jersey-based Great Atlantic &
Pacific is a supermarket retailer, operating under a variety of
well-known trade names, or "banners" across the mid-Atlantic and
Northeastern United States. Before filing for bankruptcy in 2010,
A&P operated 429 stores in 8 states and the District of Columbia
under the following trade names: A&P, Waldbaum's, Pathmark,
Pathmark Sav-a-Center, Best Cellars, The Food Emporium, Super
Foodmart, Super Fresh and Food Basics. A&P had 41,000 employees
prior to the bankruptcy filing.
A&P and its affiliates filed Chapter 11 petitions (Bankr. S.D.N.Y.
Case No. 10-24549) on Dec. 12, 2010, in White Plains, New York.
In its petition, A&P reported total assets of $2.5 billion and
liabilities of $3.2 billion as of Sept. 11, 2010.
Paul M. Basta, Esq., James H.M. Sprayregen, Esq., and Ray C.
Schrock, Esq., at Kirkland & Ellis, LLP, in New York, and James J.
Mazza, Jr., Esq., at Kirkland & Ellis LLP, in Chicago, Illinois,
serve as counsel to the Debtors. Kurtzman Carson Consultants LLC
is the claims and notice agent. Lazard Freres & Co. LLC is the
financial advisor. Huron Consulting Group is the management
consultant. Dennis F. Dunne, Esq., Matthew S. Barr, Esq., and
Abhilash M. Raval, Esq., at Milbank, Tweed, Hadley & McCloy LLP,
represent the Official Committee of Unsecured Creditors.
A&P obtained court approval for a new contract with C&S Wholesale
Grocers Inc., its principal supplier. The contract is designed to
save A&P $50 million a year when the supermarket operator emerges
from Chapter 11 reorganization.
A&P sold 12 Super-Fresh stores in the Baltimore-Washington area
for $37.83 million, plus the value of inventory. Thirteen other
locations didn't attract buyers at auction and were closed mid-
July 2011.
A&P filed a proposed Chapter 11 plan founded upon a $490 million
debt and equity financing announced this month. The proposed
financing, tentatively approved by the bankruptcy judge, allows
A&P to accept a better offer if one appears. New investors
sponsoring the plan include Yucaipa Cos., Goldman Sachs Group Inc.
and Mount Kellett Capital Management LP.
ATMAN HOSPITALITY: Court Names Michael Kasolas as Ch. 11 Trustee
----------------------------------------------------------------
David Benda at redding.com reports that Michael G. Kasolas, a
certified public accountant from San Francisco, was named trustee
in the Chapter 11 case of Atman Hospitality Group on Dec. 1, 2011.
According to the report, the appointment came one day after Judge
Thomas Holman denied Atman Hospitality Group's request to use cash
collateral to pay employee wages, taxes and maintain the property
as it attempts to reorganize its roughly $13 million in debt.
The report says Atman Hospitality Group had been battling its
largest creditor, Far East National Bank of Los Angeles, to keep
Gaia Hotel's doors open.
The report, citing court documents, relates that Far East National
Bank urged the court to reject the use of cash collateral and
appoint a trustee because it felt Atman Hospitality Group wasn't
following court rules and couldn't be "trusted to manage its
estate."
The report says Mr. Kasolas is expected to give a budget to Far
East National Bank that shows projected revenues and expenses from
Jan. 1 to March 31, 2012. The financial outline is due on or
before Dec. 22, 2011.
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.
ATRIUM COS: S&P Affirms 'B-' Corporate; Outlook Negative
--------------------------------------------------------
Standard & Poor's Rating Services affirmed its 'B-' corporate
credit rating on Dallas-based Atrium Cos. Inc. and removed all
ratings from CreditWatch, where they were placed with negative
implications on Sept. 2, 2011. The outlook is negative.
"The rating affirmation and negative outlook reflect Atrium's more
highly leveraged financial risk profile resulting from a more
difficult residential construction market than we had previously
expected," said Standard & Poor's credit analyst Megan Johnston.
"In our view, these conditions are unlikely to meaningfully
improve over the next year. In addition, the actions reflect
reduced liquidity and increased debt levels due to costs incurred
related to the recent immigration audit of the company's Champion
Window plant in Houston. As a result, for the trailing 12 months
ended Sept. 30, 2011, total leverage (adjusted for operating
leases, as well as for one-time costs associated with the
immigration audit) was between 8x and 9x, compared with about 6x
as of March 31, 2011. (Atrium does not publicly disclose financial
information given its private company status)," S&P said.
"We now expect that Atrium's operating results into 2012 will
likely be weaker than we had previously forecast given continued
weakness in new residential construction as well as repair and
remodeling spending. Standard & Poor's economists are projecting
housing starts of 660,000 in 2012, a modest improvement over
2011's estimated level of 600,000 starts but still well below
the long-term average of 1.5 million annual starts. In addition,
repair and remodeling spending in 2012 will likely be flat over
2011 levels. Previously, we had expected spending growth of 3% to
5%. As a result, we are expecting leverage to remain between 8x
and 9x in 2012, with cash interest coverage below 2x," S&P said.
"The 'B-' corporate credit rating on Atrium reflects the
combination of what we consider to be the company's vulnerable
business risk profile and highly leveraged financial risk profile.
The vulnerable business risk profile reflects the company's
limited market share in the highly competitive and fragmented
windows industry, offset partially by some strength in regional
markets, particularly Texas and Canada, as well as exposure to
volatile raw material costs, particularly resin and aluminum," S&P
said.
"Atrium is a vertically integrated manufacturer of aluminum and
vinyl windows and patio doors with more than 20 manufacturing
facilities and 30 distribution centers in North America.
Approximately 50% of the company's consolidated revenue is derived
from residential construction throughout the U.S. The rating
outlook is negative. Because of the poor operating environment,
Standard & Poor's believes operating conditions for Atrium will
remain difficult over the next several quarters, resulting in weak
credit measures for the rating. We project that the ratio of debt
to EBITDA could exceed 8x in 2012, with cash interest coverage of
less than 2x," S&P said.
"We could lower the ratings on Atrium if weaker-than-expected
operating conditions were to cause the company to use cash
balances and revolver availability to fund operating losses, or if
headroom on the covenants that govern its term loan were to fall
below 10%, which could cause us to revise our assessment of
Atrium's liquidity to less-than-adequate. This could occur
if EBITDA were to fall approximately 15% from projected 2012
levels at a time when covenants periodically tighten," S&P said.
"We could revise the outlook to stable if construction end markets
begin to recover and repair and remodeling spending increases,
such that EBITDA and liquidity improve more quickly than we
expect. This could occur if the sales grow in the mid-single
digits and gross margins return to historical levels," S&P said.
AUGUSTA HOUSING: S&P Raises Rating on Revenue Bonds From 'BB'
-------------------------------------------------------------
Standard & Poor's Ratings Services raised its long-term rating on
Augusta Housing Authority, Ga.'s (Richmond Summit Apartments
Project) multifamily housing revenue bonds series 2004 four
notches to 'AA+' from 'BB'. The outlook is negative. The bonds are
secured by a Ginnie Mae mortgage-backed security.
The rating reflects the sovereign rating on the United States
(AA+/Negative).
"Should the sovereign rating on the United States be upgraded to
'AAA' and the bond program meet all criteria commensurate with an
'AAA' rating, the rating on the bonds will be upgraded," said
Standard & Poor's credit analyst Renee J. Berson.
"Standard & Poor's has analyzed updated cash flow statements,
based on a zero reinvestment assumption for all scenarios as set
forth in the related criteria articles. We believe the cash flow
projections, assuming no reinvestment earnings, indicate that
there will be sufficient revenues to pay regularly scheduled debt
service through bond maturity of Oct. 20, 2044. In the event that
the security prepays, we expect there to be sufficient assets to
cover the reinvestment risk based on the 15-day minimum notice
period required for special redemptions," S&P said.
AVENTINE RENEWABLE: Liquidity Tightens on Operating Hiccups
-----------------------------------------------------------
Dow Jones' DBR Small Cap reports that less than two years since
emerging from bankruptcy, ethanol producer Aventine Renewable
Energy Holdings Inc. is at risk of stressing its liquidity as most
of its plants are operating below full capacity, analysts said.
About Aventine Renewable
Pekin, Illinois-based Aventine Renewable Energy Holdings, Inc.
(Pink Sheets: AVRNQ) -- http://www.aventinerei.com/-- is a
producer and marketer of ethanol to many leading energy companies
in the United States. In addition to ethanol, Aventine also
produces distillers grains, corn gluten meal, corn gluten feed,
corn germ and brewers' yeast.
The Company and and all of its direct and indirect subsidiaries
filed for Chapter 11 on April 7, 2009 (Bankr. D. Del. Lead Case
No. 09-11214). Joel A. Waite, Esq., and Ryan M. Bartley, Esq., at
Young, Conaway, Stargatt & Taylor, serves as bankruptcy counsel to
the Debtors. Davis Polk & Wardwell is special tax counsel and
Houlihan, Lokey, Howard & Zukin, Inc., is the financial advisor.
Garden City Group, Inc., has been engaged as claims agent. Donald
J. Detweiler, Esq., at Greenberg Traurig, LLP, serves as counsel
to the official committee of unsecured creditors. When it filed
for bankruptcy protection from its creditors, Aventine Renewable
estimated between $100 million and $500 million each in assets and
debts.
AVENTINE RENEWABLE: S&P Cuts Corporate Credit Rating to 'CCC+'
--------------------------------------------------------------
Standard & Poor's Ratings Services lowered its corporate credit
rating on Aventine Renewable Energy Holdings Inc. to 'CCC+'. "At
the same time, we lowered the $225 million senior secured note
issue rating to 'B-'. We removed our ratings on Aventine from
CreditWatch with negative implications, where we placed them on
Sept. 30, 2011. The '2' recovery rating remains unchanged. The
outlook is negative," S&P said.
"The downgrade reflects problems the company has encountered in
attempting to start its new facilities, and the risk of additional
delays and cost overruns. It also reflects the commodity basis
differentials its operating plants have experienced in 2011 that
have compressed margins, especially in the second quarter of 2011
when index-based crush spreads were weak. Although performance
has improved slightly since then, we believe liquidity may come
under stress and that covenant violations are possible in 2012
unless operations and realized margins improve," S&P said.
"The ratings on Aventine incorporate its vulnerable business risk
profile and its highly leveraged financial risk profile," said
Standard & Poor's credit analyst Mark Habib.
"The vulnerable business risk profile reflects the ongoing
construction risk at Aventine, as well as our broader view of
risks in the ethanol sector, which is exposed to unpredictable and
cyclical cash flows due to volatile and inconsistently correlated
commodity pricing for corn, natural gas, and ethanol," S&P said.
The financial risk profile reflects Aventine's highly leveraged
financial metrics, which are particularly weak, with negative
EBITDA for the second quarter of 2011.
The negative outlook reflects the risk of further delays in
realizing full throughput under the planned capacity expansions,
which could impair financial performance and stress liquidity. It
also reflects the potential for weaker-than-expected crush spreads
at the operating facilities. Commodity prices and basis
differentials have been and will likely remain volatile over
the long term, making Aventine's profitability difficult to
predict. A reduction or removal of government subsidies, including
the VEETC, could further complicate forecasts for ethanol pricing
and margins.
"We could lower the rating if expansion delays or cost overruns
indicate that EBITDA is likely to remain negative and constrain
liquidity for an extended period. This could also result if
realized crush spreads drop to below 55 cents per gallon, or if
Aventine's conversion and overhead costs rise significantly above
50 cents per gallon. We could raise the rating if construction is
completed on time and budget and improved operating performance
supports an expectation of debt to EBITDA below 6x," S&P said.
AZ CHEM: Standard & Poor's Affirms 'B+' Corporate Credit Rating
---------------------------------------------------------------
Standard & Poor's Ratings Services affirmed its 'B+' corporate
credit rating on Jacksonville, Fla.-based AZ Chem US Inc. The
outlook is stable. "At the same time, we assigned our 'B+'
corporate credit rating to the company's holding company and
indirect parent Arizona Chemical Holdings Corp. We also assigned
our 'B+' issue-level ratings to AZ Chem US's $60 million first-
lien senior secured revolving credit facility due 2016 and $750
million term loan due 2017 with recovery ratings of '3',
indicating our expectation of a meaningful recovery (50% to 70%)
in the event of a payment default," S&P said.
"The ratings on Arizona Chemical Holdings and AZ Chem US reflect
the company's concentration in a niche market for specialty pine-
based chemicals and its very aggressive financial policies, as
well as our view that industry conditions will support the current
financial profile," said Standard & Poor's credit analyst Seamus
Ryan. "This also reflects our expectation that the company will
not increase debt leverage beyond current levels to fund
additional shareholder rewards or growth. We characterize
Arizona's business risk profile as weak and its financial risk
profile as aggressive."
"Our assessment of Arizona's financial risk profile incorporates
our view of the risks related to its shareholder-friendly
financial policy, as highlighted by the proposed debt-financed
distribution. Pro forma for the transaction, total adjusted debt
will have increased to about $805 million from about $510 million
at the end of 2010. Significant improvements in EBITDA and cash
flow over the past several quarters have contributed to a
reduction in debt leverage metrics. However, in our view, the
current unprecedented favorable pricing for Arizona's products,
which has helped improve operating performance, is unlikely to be
fully sustained over the next two years. Based on our scenario
forecasts, we assume selling prices could drop by as much as
15% to 20% over this period as pricing stabilizes at a more
sustainable long-term level. Although the pro forma ratio of funds
from operations (FFO) to total debt could approach 40% over the
next year, we expect this ratio will return to about 20% -- a
level still appropriate for the current rating," S&P said.
"The stable outlook reflects our expectation that, despite an
increase in debt and likely regression in operating results over
the next year, Arizona's operating performance should support
financial metrics consistent with the current ratings. We expect
management will be prudent in its capital spending and investment
plans. We do not expect further dividends or acquisitions to
increase debt leverage beyond current levels," S&P said.
"We could lower the ratings if the company further increases its
debt leverage to fund shareholder rewards or growth, or if selling
prices decline by about 20% over the next 12 months without an
offsetting increase in sales volumes," Mr. Ryan continued. "These
scenarios could reduce the company's FFO to total debt below 15%.
Given its concentration in a niche business, as well as its
private equity ownership and the risk of further shareholder
rewards, an upgrade over the next couple of years is unlikely."
BANKUNITED FINANCIAL: To Extend CRO Engagement Thru March 2012
--------------------------------------------------------------
BankruptcyData.com reports that BankUnited Financial filed a
notice with the U.S. Bankruptcy Court announcing its intention to
extend the engagement of Joseph J. Luzinski of Development
Specialists Inc. as chief restructuring officer through and
including March 31, 2012, or the date on which the Court confirms
a Chapter 11 plan. Mr. Luzinski will devote not less than 20
hours per month to these cases during the renewed extension period
and will receive compensation at a rate of $10,000 per month, the
report relates. The Court scheduled a Jan. 18, 2012 hearing on
the matter.
DSI may be reached at:
Joseph J. Luzinski
Development Specialists Inc.
Miami Southeast Financial Center 200
South Biscayne Boulevard, Suite 1818
Miami, FL 33131-2329
Tel: 305-374-2717
E-mail: jluzinski@dsi.biz
About BankUnited Financial
BankUnited Financial Corp. (OTC Ticker Symbol: BKUNQ) --
http://www.bankunited.com/-- was the holding company for
BankUnited FSB, the largest banking institution headquartered in
Coral Gables, Florida. On May 21, 2009, BankUnited FSB was closed
by regulators and the Federal Deposit Insurance Corporation
facilitated a sale of the bank to a management team headed by John
Kanas, a veteran of the banking industry and former head of North
Fork Bank, and a group of investors led by W.L. Ross & Co.
BankUnited, FSB, had assets of $12.8 billion and deposits of
$8.6 billion as of May 2, 2009.
The Company and its affiliates filed for Chapter 11 protection
(Bankr. S.D. Fla. Lead Case No. 09-19940) on May 22, 2009.
Stephen P. Drobny, Esq., and Peter Levitt, Esq., at Shutts & Bowen
LLP; Mark D. Bloom, Esq., and Scott M. Grossman, Esq., at
Greenberg Traurig, LLP; and Michael C. Sontag, at Camner, Lipsitz,
P.A., represent the Debtors as counsel. Corali Lopez-Castro,
Esq., David Samole, Esq., at Kozyak Tropin & Throckmorton, P.A.;
and Todd C. Meyers, Esq., at Kilpatrick Stockton LLP, serve as
counsel to the official committee of unsecured creditors.
In its bankruptcy petition, BankUnited Financial Corp. disclosed
$37,729,520 in assets against $559,740,185 in debts. Aside from
those assets, BankUnited said that a "valuable" asset is its $3.6
billion net operating loss carryforward.
Wilmington Trust Co., U.S. Bank, N.A., and the Bank of New York
were listed among the company's largest unsecured creditors in
their roles as trustees for security issues. BankUnited estimated
the Bank of New York claim tied to convertible securities at
$184 million. U.S. Bank and Wilmington Trust are owed
$120 million and $118.171 million on account of senior notes.
BEACON POWER: Wants Until Dec. 14 to File Schedules and Statements
------------------------------------------------------------------
Beacon Power Corporation asks the U.S. Bankruptcy Court for the
District of Delaware to extend until Dec. 14, 2011, its time to
file its schedules of assets and liabilities, schedules of current
income and expenditures, schedules of executory contracts and
unexpired leases, and statements of financial affairs.
The Debtor explains that it needs sufficient time or resources to
compile the information necessary to complete the schedules and
statements. The Debtor has devoted the majority of its time
negotiating to obtain the financing needed to complete the
proposed sale of its assets.
About Beacon Power
Tyngsboro, Mass.-based Beacon Power Corporation (Nasdaq: BCOND)
-- http://www.beaconpower.com/-- designs, manufactures and
operates flywheel-based energy storage systems that it has begun
to deploy in company-owned merchant plants that sell frequency
regulation services in open-bid markets.
Beacon Power filed for Chapter 11 protection on Oct. 30, 2011, in
Delaware (Bankr. D. Del. Case No. 11-13450) after borrowing $39.1
million guaranteed by the U.S. Energy Department. Brown Rudnick
and Potter Anderson & Corroon serve as the Debtor's counsel.
Tyngsboro, Massachusetts-based Beacon disclosed assets of
$72 million and debt totaling $47 million, including $39.1 million
owing on the government-guaranteed loan. Beacon built a $69
million facility with 20 megawatts of balancing capacity in
Stephentown, New York, funded mostly by the Energy Department
loan.
Beacon Power is the second cleantech company which has been backed
by the U.S. Department of Energy via loan guarantees to fail this
year. The first was Solyndra, which declared Chapter 11
bankruptcy on Sept. 6, 2011.
BEACON POWER: U.S. Department of Energy Seeks Bidding Rights
------------------------------------------------------------
Dow Jones' DBR Small Cap reports that the U.S. Department of
Energy is protesting the limits that Massachusetts renewable
electricity-storage company Beacon Power Corp. put on the agency's
ability to bid on the company's flagship power storage plant at a
bankruptcy auction.
About Beacon Power
Tyngsboro, Mass.-based Beacon Power Corporation (Nasdaq: BCOND)
-- http://www.beaconpower.com/-- designs, manufactures and
operates flywheel-based energy storage systems that it has begun
to deploy in company-owned merchant plants that sell frequency
regulation services in open-bid markets.
Beacon Power filed for Chapter 11 protection on Oct. 30, 2011, in
Delaware (Bankr. D. Del. Case No. 11-13450) after borrowing $39.1
million guaranteed by the U.S. Energy Department. Brown Rudnick
and Potter Anderson & Corroon serve as the Debtor's counsel.
Tyngsboro, Massachusetts-based Beacon disclosed assets of
$72 million and debt totaling $47 million, including $39.1 million
owing on the government-guaranteed loan. Beacon built a $69
million facility with 20 megawatts of balancing capacity in
Stephentown, New York, funded mostly by the Energy Department
loan.
Beacon Power is the second cleantech company which has been backed
by the U.S. Department of Energy via loan guarantees to fail this
year. The first was Solyndra, which declared Chapter 11
bankruptcy on Sept. 6, 2011.
BERNARD L. MADOFF: Investors Lose Bid to Appeal $44MM Trustee Fees
------------------------------------------------------------------
Hilary Russ at Bankruptcy Law360 reports that a group of Bernard
L. Madoff Investment Securities LLC's former investors have lost
their latest challenge to the $44 million in compensation awarded
so far to Irving Picard, the trustee liquidating the bankrupt
firm, according to an order filed Wednesday.
According to Law360, U.S. District Judge Robert P. Patterson Jr.
found that Diane and Roger Peskin and at least 80 other former
Madoff clients had not presented a "controlling" legal question
that they needed in their request to file an appeal in the middle
of the liquidation case.
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.
Mr. Picard has filed 1,000 lawsuits seeking $100 billion from
banks such as HSBC Holdings Plc and JPMorgan Chase & Co. The
trustee has seen more than $28 billion of his claims tossed by
district judges.
BESO LLC: Sues Co-Investor Vicidomine to Recover Excess Funds
-------------------------------------------------------------
Steve Green at Vegas Inc. reports that actress Eva Longoria's Beso
LLC is suing one of Longoria's co-investors Anthony Vicidomine,
demanding he return money paid to buy out his share of the
business.
According to the report, a lawsuit-like adversary complaint was
filed in U.S. Bankruptcy Court in Las Vegas on Nov 29, 2011, by
Beso LLC against Mr. Vicidomine.
The report notes that Beso LLC used to own the Beso restaurant and
Eve nightclub at the Crystals mall at CityCenter on the Las Vegas
Strip. Ms. Longoria had a 32 percent position in Beso LLC, which
was created in hopes of duplicating the success of her Beso
restaurant in Hollywood.
According to the report, the complaint charges that before the
bankruptcy, Mr. Vicidomine negotiated a buyout of his interest in
Beso for $750,000. That amount eventually grew to $784,000,
including attorney's fees, after Mr. Vicidomine sued to enforce
the settlement.
According to the report, the complaint doesn't allege any
wrongdoing by Mr. Vicidomine but asserts he has received more than
his fair share of cash from the company, given the losses facing
other investors and creditors.
The report adds, if successful, the complaint would mean that Mr.
Vicidomine, at one point Beso's third-largest creditor, would
likely see most of his investment in the company wiped out.
About Beso LLC
Beso LLC, co-owned by "Desperate Housewives" star Eva Longoria,
filed for Chapter 11 bankruptcy protection (Bankr. D. Nev. Case
No. 11-10202) on Jan. 6, 2011. Beso LLC runs a Las Vegas
restaurant that opened two years ago. It disclosed assets of
$2,512,007 and liabilities of $5,680,339 in the schedules attached
to the Chapter 11 petition. Lenard E. Schwartzer, Esq., at
Schwartzer & McPherson Law Firm, in Las Vegas, Nevada, serves as
counsel to the Debtor. The petition was signed by William M.
Braden, manager.
BIO-BRIDGE SCIENCE: Posts $271,600 Net Loss in Third Quarter
------------------------------------------------------------
Bio-Bridge Science, Inc., filed its quarterly report on Form 10-Q,
reporting a net loss of $271,626 on $18,495 of revenue for the
three months ended Sept. 30, 2011, compared with a net loss of
$566,261 on $27,118 of revenue for the same period of 2010.
For the nine months ended Sept. 30, 2011, the Company has reported
a net loss of $1.0 million on $54,835 of revenue, compared with a
net loss of $3.0 million on $76,024 of revenue for the same period
last year.
The Company's balance sheet at Sept. 30, 2011, showed $3.3 million
in total assets, $774,456 in current liabilities, and
stockholders' equity of $2.5 million.
As reported in the TCR on April 26, 2011, Weinberg & Company,
P.A., in Los Angeles, expressed substantial doubt about Bio-Bridge
Science's ability to continue as a going concern, following the
Company's 2010 results. The independent auditors noted that the
Company has experienced recurring losses since inception and
negative cash flows from operating activities.
A copy of the Form 10-Q is available for free at:
http://is.gd/OJEkfY
Oakbrook Terrace, Illinois-based Bio-Bridge Science, Inc., is a
biotechnology company whose subsidiaries are focused on the
commercial development of HIV-PV Vaccine I, HPV vaccine, colon
cancer vaccine, mucosal adjuvant and the manufacture and sale of
vaccine production-related materials.
BIOZONE PHARMACEUTICALS: Issues 500,000 Shares of Common Stock
--------------------------------------------------------------
Biozone Pharmaceuticals, Inc., on Nov. 30, 2011, issued 500,000
shares of its common stock, par value $0.001 per share, pursuant
to a Subscription Agreement entered into on that date.
Also on Nov. 30, 2011, the Company issued 1,018,456 shares of its
common stock, par value $0.001 per share, upon conversion of the
principal and all of the interest due on a certain convertible
promissory note issued by the Company on Sept. 22, 2011, according
to the conditions set forth in that note. In addition, pursuant
to the terms of the Securities Purchase Agreement related to the
note, the Company issued to the holder of the note a warrant to
purchase 250,000 shares of its common stock at an exercise price
of $1.00 per share.
The Shares and warrants were issued to an accredited investor in
reliance upon the exemption from registration provided by Section
4(2) of the Securities Act of 1933, as amended and Rule 506
promulgated by the Securities and Exchange Commission thereunder.
About Biozone
Biozone Pharmaceuticals, Inc., formerly, International Surf
resorts, Inc., was incorporated under the laws of the State of
Nevada on Dec. 4, 2006, to operate as an internet-based provider
of international surf resorts, camps and guided surf tours. The
Company proposed to engage in the business of vacation real estate
and rentals related to its surf business and it owns the website
isurfresorts.com. During late February 2011, the Company began to
explore alternatives to its original business plan. On Feb. 22,
2011, the prior officers and directors resigned from their
positions and the Company appointed a new President, Director,
principal accounting officer and treasurer and began to pursue
opportunities in medical and pharmaceutical technologies and
products. On March 1, 2011, the Company changed its name to
Biozone Pharmaceuticals, Inc.
Since March 2011, the Company has been engaged primarily in
seeking opportunities related to its intention to engage in
medical and pharmaceutical businesses. On May 16, 2011, the
Company acquired substantially all of the assets and assumed all
of the liabilities of Aero Pharmaceuticals, Inc., pursuant to an
Asset Purchase Agreement dated as of that date. Aero manufactures
markets and distributes a line of dermatological products under
the trade name of Baker Cummins Dermatologicals.
On June 30, 2011, the Company acquired the Biozone Labs Group
which operates as a developer, manufacturer, and marketer of over-
the-counter drugs and preparations, cosmetics, and nutritional
supplements on behalf of health care product marketing companies
and national retailers.
BioZone as of Oct. 29, 2011, is in default with respect to eleven
senior secured convertible promissory notes issued to various
accredited investors with an aggregate principal amount of
$2,250,000 due to the fact that the Company has not paid the
amount due on maturity.
The Company's balance sheet at Sept. 30, 2011, showed
$10.70 million in total assets, $10.88 million in total
liabilities, and a $177,712 total shareholders' deficiency.
"Our current balances of cash will not meet our working capital
and capital expenditure needs for the next twelve months. In
addition, as of September 30, 2011, we have a shareholder
deficiency of $177,712 and negative working capital of $1,740,163.
Because we are not currently generating sufficient cash to fund
our operations and we have debt that is in default, we may need to
rely on external financing to meet future operating, debt
repayment and capital requirements. These conditions raise
substantial doubt about our ability to continue as a going
concern."
BOBBY ROWE: Bankruptcy Auction Moved to Dec. 21
-----------------------------------------------
On Dec. 2, 2011, Karen Walsh, the Chapter 7 Trustee appointed in
the Bobby Rowe Energy, Inc. and Stephen Rowe Oil Properties, LLC
bankruptcy cases, entered into an Asset Purchase Agreement with
Sam Mayes, Jr. for the sale of four oil and gas leases in Okmulgee
County, Oklahoma. The sales price is $151,788. The court-
appointed auctioneer, National Commercial Auctioneers, has
cancelled the auction originally scheduled for Dec. 14 at 10:00
a.m. and instead will be attending a hearing on December 21 at
9:00 a.m. where the Honorable Judge Cornish will be considering
the approval of the pending offer, subject to higher and better
bids.
"While the December 14 auction was cancelled, the new auction will
be on December 21 at 9:00 a.m. in the US Bankruptcy Court in
Okmulgee County, Oklahoma," comments Stephen Karbelk, CEO &
Founder of National Commercial Auctioneers. "If another bidder is
willing to pay more than the existing offer, they can object to
the sale by filing a motion with the Court by December 16 and
following the procedures outlined in the sale motion filed on
December 2."
In bankruptcy, there is often the situation where an offer to
purchase assets is presented to the Court for approval but the
offer is subject to higher and better bids. For another bidder to
bid, they are typically required to follow the exact same contract
as the pending offer, or "stalking horse bid" in bankruptcy
terminology, and to have a bid price that is a meaningful increase
over the pending offer. In the Rowe cases, the next highest bid
must be $161,787.93 for all four leases and a new buyer must sign
the exact same contract that is pending before the Court. In the
original auction, the leases were going to be offered
individually, in combinations and in their entirety. But with the
stalking horse bid offer, the leases will only
be sold together for one bid.
To obtain more information about the leases and the auction, or to
obtain a copy of the sale motion, you can contact National
Commercial Auctioneers at 918-895-7077 or visit their Web site at
http://www.natcomauctions.com
Bobby Rowe Energy, Inc, filed a Chapter 11 petition (Bankr. D.
Okla. Case No. 09-81217) on July 27, 2009 in Okmulgee,
Oklahoma, Jeff Potts, Esq. at Potts & Jones LLP, in Okmulgee,
Oklahoma serves as counsel to the Debtor. The Debtor estimated up
to $10,000,000 in assets and up to $10 million in liabilities.
The petition was signed by Stephen P. Rowe, president of the
Company.
BOUNDARY BAY: Committee Retains Crowe Horwarth as Accountants
-------------------------------------------------------------
The Official Committee of Unsecured Creditors of Boundary Bay
Capital, LLC, asks the U.S. Bankruptcy Court for the Central
District of California for permission to retain Crowe Horwarth,
LLP as accountants.
Upon retention, the firm will, among other things:
a. obtain, index and evaluate financial records;
b. analyze receipts and disbursement and report on findings;
and
c. investigate assets and liabilities to the Debtor.
Howard B. Grobstein, partner of Crowe Horwarth, attests that the
firm is a "disinterested person" as the term is defined in Section
101(14) of the Bankruptcy Code.
The firm's hourly rates are:
Personnel Rates
--------- -----
Executives & Directors $385-$595
Senior Managers $115-$340
Managers $100-$265
Senior Accountants $140-$235
Associate Accountants $85-$170
Administrative Consultants $70-$175
Bookkeepers $150-$185
IT Consultants $90-$225
About Boundary Bay
Boundary Bay Capital, LLC, is a California limited liability
company with its headquarters in Irvine, California. The Company
was in the business of making loans secured by liens on real
property and notes secured by other secured notes (which, in turn,
are secured by liens or real property). The Company also owns
some real property through foreclosure.
Boundary Bay Capital filed for Chapter 11 bankruptcy protection
(Bankr. C.D. Calif. Case No. 11-14298) on March 28, 2011. Evan D.
Smiley, Esq., and Hutchison B. Meltzer, Esq., at Weiland, Golden,
Smiley, Wang Ekvall & Strok, LLP, in Costa Mesa, Calif., serve as
the Debtor's bankruptcy counsel.
Affiliate Cartwright Properties, LLC, filed a separate Chapter 11
petition (Bankr. C.D. Calif. Case No. 10-17823) on June 9, 2010.
In its schedules, the Debtor disclosed $15,876,118 in assets and
$54,448,485 in liabilities.
BRIGHAM EXPLORATION: 92% Outstanding Shares Tendered to Statoil
---------------------------------------------------------------
Statoil ASA and Brigham Exploration Company announced that more
than 92.2 percent of the outstanding shares of Brigham's common
stock have been tendered to Statoil (excluding shares purchased by
Statoil from Brigham).
The Brigham stockholders have tendered 109,400,549 shares of
Brigham common stock, par value $0.01 per share, to Statoil's
indirect, wholly owned subsidiary, Fargo Acquisition Inc.,
pursuant to the offer to purchase dated Oct. 28, 2011, which, when
added to the 6,249,857 Shares separately purchased by Statoil from
Brigham, represents more than 92.6 percent of the outstanding
Shares. The subsequent offering period expired at 12:00 midnight,
New York City time, at the end of Wednesday, Dec. 7, 2011.
Purchaser has accepted for payment, and will promptly pay for, all
Shares tendered during the subsequent offering period.
As the final step of the acquisition process and following payment
for all Shares validly tendered on or prior to the expiration of
the tender offer, Statoil and Purchaser expect to effect a short-
form merger under Delaware law as promptly as practicable. At the
effective time of the merger, each Share issued and outstanding
immediately prior to the effective time will cease to be issued
and outstanding and will be converted into the right to receive an
amount in cash equal to the offer price of US$36.50, without
interest thereon and less any applicable withholding taxes.
Brigham will be the surviving corporation in the merger and an
indirect, wholly owned subsidiary of Statoil. Following the
merger, the Shares will be delisted and will cease to trade on the
NASDAQ Global Select Market.
Questions and requests for assistance regarding the tender offer
may be directed to the information agent for the offer, Innisfree
M&A Incorporated at (877) 687-1875 or (212) 750-5833.
About Brigham Exploration
Austin, Texas-based Brigham Exploration Company (NASDAQ: BEXP)
-- http://www.bexp3d.com/-- is an independent exploration,
development and production company that utilizes advanced
exploration, drilling and completion technologies to
systematically explore for, develop and produce domestic onshore
oil and natural gas reserves. In late 2007, the majority of the
Company's drilling capital expenditures shifted from its
historically active areas in the Onshore Gulf Coast, the Anadarko
Basin and West Texas to the Williston Basin in North Dakota and
Montana, where the Company is currently targeting the Bakken,
Three Forks and Red River objectives.
The Company's balance sheet at Sept. 30, 2011, showed $1.74
billion in total assets, $973.68 million in total liabilities and
$773.03 million in total stockholders' equity.
* * *
As reported by the TCR on Feb. 18, 2011, Moody's Investors Service
upgraded Brigham Exploration Company's Corporate Family Rating to
B3 from Caa1 and the Probability of Default Rating to B3 from
Caa1. "The primary driver for the upgrade is Brigham's strong
reserve and production growth and significant financial
flexibility," said Francis J. Messina, Moody's Vice President.
"The B3 Corporate Family Rating is prospective and it incorporates
Moody's expectation that the company will significantly increase
proved developed reserves and production rates over the next two
years."
BRIGHAM EXPLORATION: Common Stock Delisted from NASDAQ
------------------------------------------------------
NASDAQ Stock Market LLC notified the U.S. Securities and Exchange
Commission regarding the removal from listing or registration of
Brigham Exploration Co.'s common stock on NASDAQ.
About Brigham Exploration
Austin, Texas-based Brigham Exploration Company (NASDAQ: BEXP)
-- http://www.bexp3d.com/-- is an independent exploration,
development and production company that utilizes advanced
exploration, drilling and completion technologies to
systematically explore for, develop and produce domestic onshore
oil and natural gas reserves. In late 2007, the majority of the
Company's drilling capital expenditures shifted from its
historically active areas in the Onshore Gulf Coast, the Anadarko
Basin and West Texas to the Williston Basin in North Dakota and
Montana, where the Company is currently targeting the Bakken,
Three Forks and Red River objectives.
The Company's balance sheet at Sept. 30, 2011, showed $1.74
billion in total assets, $973.68 million in total liabilities and
$773.03 million in total stockholders' equity.
* * *
As reported by the TCR on Feb. 18, 2011, Moody's Investors Service
upgraded Brigham Exploration Company's Corporate Family Rating to
B3 from Caa1 and the Probability of Default Rating to B3 from
Caa1. "The primary driver for the upgrade is Brigham's strong
reserve and production growth and significant financial
flexibility," said Francis J. Messina, Moody's Vice President.
"The B3 Corporate Family Rating is prospective and it incorporates
Moody's expectation that the company will significantly increase
proved developed reserves and production rates over the next two
years."
BUILDERS FIRSTSOURCE: Secures $160MM Term Loan from Highbridge
--------------------------------------------------------------
Builders FirstSource, Inc., announced the completion of a new $160
million first-lien Term Loan financing agreement with affiliates
of Highbridge Principal Strategies, LLC. The Company also
announced it had entered into a stand-alone letter of credit
facility with SunTrust Bank, which provides for the issuance of up
to $20 million of letters of credit. With the proceeds, the
Company intends to repay the $20 million outstanding under the
current revolving credit facility, use $14.2 million to
collateralize letters of credit outstanding under the new LC
Facility, and pay fees and expenses related to the transaction.
Floyd Sherman, Builders FirstSource chief executive officer,
commented, "This financing transaction strengthens our liquidity
and positions us to take full advantage of the expected recovery
in housing. I am sincerely appreciative of the support of our
company demonstrated by Highbridge and SunTrust in partnering with
us in this transaction. I am also grateful for the continued
support of our two largest shareholders, JLL Partners and Warburg
Pincus, whose insight was critical to the success of this
financing transaction."
Continuing, Mr. Sherman added, "This financing transaction would
not have been possible without the continued improvement in our
2011 financial results. We made strong progress in 2011, and our
improved liquidity should further this progress by allowing us to
better serve our customers while remaining a preferred partner
with our vendors. Upon receipt of the $119.6 million in net
proceeds related to this transaction, our cash balance was
approximately $150 million, and our net liquidity was
approximately $115 million after giving effect to a $35 million
minimum cash requirement contained in the Term Loan. Our sales
results through November have exceeded our expectations, delaying
the anticipated seasonal reduction in working capital typically
seen by this point in the year. Our liquidity has also enabled us
to take advantage of opportunistic inventory buys to protect
customer pricing as we head into 2012."
The Term loan was issued at 97% and is secured by a first lien on
substantially all of the Company's assets and is guaranteed by all
the Company's subsidiaries. Interest accrues on the loan at 3-
month LIBOR (subject to a 2% floor), plus 9.5%. The Term Loan
also includes detachable warrants that allow for the purchase of
1.6 million shares of the Company's common stock, representing
approximately 1.5% fully diluted ownership, at a price of $2.50.
The LC Facility includes a commitment fee of 0.5% on any unused
amount and assesses interest at a rate of 2.0% on any outstanding
letters of credit. The Term Loan and the LC Facility mature on
Sept. 30, 2015. In conjunction with the closing of the Term Loan,
the Company terminated its $150 million revolving credit facility.
Mr. Sherman concluded, "I could not be more proud of what our
employees have been able to accomplish. It has been a hard-fought
few years, and our employees have made the sacrifices and tough
decisions necessary to enable our company to manage through this
difficult housing environment. I look forward to the
opportunities that lie ahead for Builders FirstSource."
About Builders FirstSource
Headquartered in Dallas, Texas, Builders FirstSource Inc. --
http://www.bldr.com/-- supplies and manufactures building
products for residential new construction. The Company operates
in 9 states, principally in the southern and eastern United
States, and has 55 distribution centers and 51 manufacturing
facilities, many of which are located on the same premises as its
distribution facilities.
Builders FirstSource reported a net loss of $95.51 million on
$700.34 million of sales for the year ended Dec. 31, 2010,
compared with a net loss of $61.85 million on $677.88 million of
sales during the prior year.
The Company also reported a net loss of $48.29 million on
$586.41 million of sales for the nine months ended Sept. 30, 2011,
compared with a net loss of $70.89 million on $553.25 million of
sales for the same period a year ago.
The Company's balance sheet at Sept. 30, 2011, showed
$391.03 million in total assets, $274.02 million in total
liabilities, and $117.01 million in total stockholders' equity.
* * *
Builders FirstSource Inc. carries 'CCC+' issuer credit ratings,
with negative outlook, from Standard & Poor's. S&P affirmed the
ratings in April 2011. "The ratings affirmation reflects our
belief that Builders FirstSource will likely continue to generate
negative free cash flow over the upcoming year, given the ongoing
weakness in new residential housing markets. While the company's
liquidity position, which we currently view as adequate, is likely
to somewhat improve due to the increased cash balances following
the planned refinancing and the extended maturity of its revolving
credit facility, it will likely continue to rely primarily on its
cash balances to meet its interest and operating obligations until
total housing starts improve at least 35% from 2010's level. If
housing starts were to remain at its recent historically low
levels, we believe the proposed refinancing would allow Builders
FirstSource to fund its anticipated cash shortfall for
approximately two years. The ratings also reflect what Standard &
Poor's Ratings Services considers to be the company's vulnerable
business profile given its significant exposure to highly cyclical
new residential construction markets and its narrow end-market
focus and geographic scope," S&P elaborated.
In April 2011, Moody's Investors Service assigned 'Caa2' corporate
family rating and probability of default ratings to Builders
FirstSource. Moody's said the 'Caa2' Corporate Family Rating
results from very weak operating performance due to ongoing
pressures in the residential new construction end market, the
primary driver of BLDR's revenues. Although some areas within
BLDR's primary geographic markets of North Carolina and South
Carolina may have some pockets of strength, overall, Moody's does
not expect substantial improvement in new housing starts in 2011
relative to 2010. The company's products are highly price
sensitive to competition and ongoing market conditions, making it
difficult for it to pass on substantial price increases. It is
also exposed to fluctuating costs associated with lumber, its
major raw material, adding to earnings volatility. For 2010,
adjusted operating margins are inadequate at negative 7.6% and
free cash flow-to-debt is insufficient at negative 15.3% (adjusted
per Moody's methodology). The company's inability to generate
positive earnings will result in very weak credit metrics for the
foreseeable future and will require cash to fund operating
shortfalls.
BUNGE ASSET: Moody's to End ABCP Rating Actions
-----------------------------------------------
Bunge Asset Funding Corp., a fully supported, single-seller
conduit sponsored by Bunge Limited (Ba1, stable outlook) and
administered by JPMorgan Chase Bank, N.A. (Aa1/Prime-1/B), has
renewed the revolving liquidity facility to November 2016 and
increased the program size to $600 million. BAFC's $600 million
liquidity facility is provided by a syndicate of Prime-1 rated
banks. There are 19 banks in the syndicate with commitments
ranging from $38.75 million to $25 million. A complete list of
banks is available in the BAFC Program Review available on
moodys.com. With these amendments, BAFC remains as a fully
supported conduit.
BAFC is authorized to issue up to $600 million of ABCP and
currently has $5 million of ABCP outstanding.
RATINGS RATIONALE
Bunge Asset Funding Corp.: The amendments do not change the fully
supported nature of the conduit's portfolio, the ability of
JPMorgan Chase to properly administer the program, and the
bankruptcy remoteness of the conduit. All of these factors
contribute to the Prime-1 rating of BAFC's ABCP.
The principal methodology used in these ratings was "Moody's
Approach to Rating Asset-Backed Commercial Paper" published in
February 2003.
Moody's monitors and analyzes ABCP programs on an ongoing basis. A
detailed description of each program is published in the ABCP
Program Review. Some ABCP programs have monthly updated
performance information, which is published in the Performance
Overviews.
CALAIS RESOURCES: In Talks with Brigus Regarding Payment of Note
----------------------------------------------------------------
Calais Resources, Inc., provides update to its shareholders and
the market on recent developments for the Company.
Calais has a note that was fully due and payable on Dec. 1, 2011,
to Brigus Gold Corp., in the amount of approximately US$10.5
million, including principal and accrued interest, which loan is
secured by the Company's Colorado assets. Calais is in
preliminary discussions with Brigus and others to negotiate the
payment of this note, however, the Company cannot guarantee that a
satisfactory agreement will be reached between Calais and Brigus
or any other parties. Calais will update the shareholders and
investors from time to time on the status of the note.
About Calais Resources
Nederland, Colorado-based Calais Resources, Inc. (Pink Sheets:
CAAUF) is an exploration and development company and owns and
operates the Cross/Caribou gold and silver mine operations in
Colorado and the White Caps mine operation in Manhattan, Nevada.
The company is currently in the initial stages for reviewing the
reopening of the fully permitted Cross Mine which includes
planning to resume underground exploration activities in Colorado
and surface exploration in Nevada.
CANO PETROLEUM: Receives Delisting Notice From NYSE Amex
--------------------------------------------------------
On Dec. 8, 2011, Cano Petroleum, Inc. said that it received a
letter from NYSE Amex LLC confirming its intent to strike the
common stock of Cano from the Exchange by filing a delisting
application with the Securities and Exchange Commission pursuant
to Section 1009(d) of the Exchange's Company Guide.
As Cano previously reported, on October 26, 2011, the Exchange
Staff (the "Staff") notified Cano that is was not in compliance
with the following sections of the Company Guide:
-- Section 1003(a)(i) -- stockholders' equity of less than
$2,000,000 and net losses in two of its three most recent
fiscal years;
-- Section 1003(a)(ii) -- stockholders' equity of less than
$4,000,000 and net losses in three of its four most recent
fiscal years;
-- Section 1003(a)(iii) -- stockholders' equity of less than
$6,000,000 and net losses in five consecutive years; and
-- Section 1003(a)(iv) -- Cano has sustained losses which are
so substantial in relation to its overall operations or its
existing financial resources, or its financial condition has
become so impaired that it appears questionable, in the
opinion of the Exchange, as to whether the Cano will be able
to continue operations and/or meet its obligations as they
mature.
Additionally, as Cano previously reported, on Nov. 22, 2011, the
Staff determined that Cano's securities had been selling for a low
price per share for a substantial period of time and, pursuant to
Section 1003(f)(v) of the Company Guide, Cano's continued listing
was predicated on it effecting a reverse stock split of its common
stock within a reasonable period of time.
Pursuant to Section 1009 of the Company Guide, Cano was given the
opportunity to submit a plan of compliance (a "Plan") by Nov. 28,
2011 advising the Exchange of actions it had taken, or would take,
to regain compliance with Section 1003(a)(iv) of the Company Guide
by Jan. 26, 2012, Section 1003(f)(v) of the Company Guide by
May 22, 2012 and Section 1003(a)(i), Section 1003(a)(ii) and
Section 1003(a)(iii) of the Company Guide by Oct. 26, 2012. Cano
submitted its Plan on Nov. 30, 2011. In its Dec. 2, 2011 letter,
the Staff stated that upon a review of the Plan, the Staff
determined that the Plan did not sufficiently address how Cano
intended to regain compliance. Accordingly, the Staff determined
that it was appropriate to initiate delisting proceedings. The
Staff Determination constitutes notice of a failure to satisfy
certain continued listing standards.
In accordance with Sections 1203 and 1009(d) of the Company Guide,
Cano has a limited right to appeal the Staff Determination by
requesting an oral hearing or a hearing based on a written
submission before a Listing Qualifications Panel. Cano's written
request for a hearing must be received by the Exchange by
Dec. 9, 2011. Cano intends to appeal the Staff Determination.
However, there can be no assurance Cano's request for continued
listing will be granted. Cano is also taking action to have its
common stock eligible to be quoted on the OTC Pink market.
However, Cano can provide no assurance that its common stock will
be quoted on the OTC Pink market or continue to trade in any other
forum.
About Cano Petroleum
Cano Petroleum, Inc., is an independent Texas-based energy
producer with properties in the mid-continent region of the United
States. Cano's primary focus is on increasing domestic production
from proven fields using enhanced recovery methods. Cano trades
on the NYSE Amex Stock Exchange under the ticker symbol CFW.
The Company reported a net loss of $185.70 million on
$26.12 million of total operating revenues for the year ended
June 30, 2011, compared with a net loss of $11.54 million on
$22.85 million of total operating revenues during the prior year.
The Company's balance sheet at June 30, 2011, showed
$65.43 million in total assets, $118.80 million in total
liabilities, and a $53.36 million total stockholders' deficit.
Hein & Associates LLP, in Dallas, Texas, noted that the Company
has suffered recurring losses from operations and has a net
capital deficiency that raise substantial doubt about its ability
to continue as a going concern.
Bankruptcy Warning
In the past, the Company's strategy had been to convert its
estimated proved undeveloped reserves into proved producing
reserves, improve operational efficiencies in its existing
properties and acquire accretive proved producing assets suitable
for secondary and enhanced oil recovery at low cost. Due to the
Company's current financial constraints, including continued
losses, defaults under the Company's loan agreements and the
Company's Series D Preferred Stock, no available borrowing
capacity, constrained cash flow, negative working capital, and
limited to no other capital availability, the Company is reviewing
strategic alternatives which include the sale of the Company, the
sale of some or all of the Company's existing oil and gas
properties and assets, potential business combinations, debt
restructuring, including recapitalizing the Company, and
bankruptcy. The Company continues to focus on cash management and
cost reduction efforts to improve both its cash flow from
operations and profitability.
CANO PETROLEUM: Common Shares to be Delisted from NYSE Amex
-----------------------------------------------------------
Cano Petroleum, Inc., received a letter from NYSE Amex LLC
confirming its intent to strike the common stock of Cano from the
Exchange by filing a delisting application with the Securities and
Exchange Commission pursuant to Section 1009(d) of the Exchange's
Company Guide.
As Cano previously reported, on Oct. 26, 2011, the Exchange Staff
notified Cano that is was not in compliance with the following
sections of the Company Guide:
-- Section 1003(a)(i) - stockholders' equity of less than
$2,000,000 and net losses in two of its three most recent
fiscal years;
-- Section 1003(a)(ii) - stockholders' equity of less than
$4,000,000 and net losses in three of its four most recent
fiscal years;
-- Section 1003(a)(iii) - stockholders' equity of less than
$6,000,000 and net losses in five consecutive years; and
-- Section 1003(a)(iv) - Cano has sustained losses which are so
substantial in relation to its overall operations or its
existing financial resources, or its financial condition has
become so impaired that it appears questionable, in the
opinion of the Exchange, as to whether the Cano will be able
to continue operations or meet its obligations as they
mature.
Additionally, as Cano previously reported, on Nov. 22, 2011, the
Staff determined that the Cano's securities had been selling for a
low price per share for a substantial period of time and, pursuant
to Section 1003(f)(v) of the Company Guide, Cano's continued
listing was predicated on it effecting a reverse stock split of
its common stock within a reasonable period of time.
Pursuant to Section 1009 of the Company Guide, Cano was given the
opportunity to submit a plan of compliance by Nov. 28, 2011,
advising the Exchange of actions it had taken, or would take, to
regain compliance with Section 1003(a)(iv) of the Company Guide by
Jan. 26, 2012, Section 1003(f)(v) of the Company Guide by
May 22, 2012, and Section 1003(a)(i), Section 1003(a)(ii) and
Section 1003(a)(iii) of the Company Guide by Oct. 26, 2012. Cano
submitted its Plan on Nov. 30, 2011. In its Dec. 2, 2011 letter,
the Staff stated that upon a review of the Plan, the Staff
determined that the Plan did not sufficiently address how Cano
intended to regain compliance. Accordingly, the Staff determined
that it was appropriate to initiate delisting proceedings. The
Staff Determination constitutes notice of a failure to satisfy
certain continued listing standards.
In accordance with Sections 1203 and 1009(d) of the Company Guide,
Cano has a limited right to appeal the Staff Determination by
requesting an oral hearing or a hearing based on a written
submission before a Listing Qualifications Panel. Cano's written
request for a hearing must be received by the Exchange by Dec. 9,
2011. Cano intends to appeal the Staff Determination. However,
there can be no assurance Cano's request for continued listing
will be granted. Cano is also taking action to have its common
stock eligible to be quoted on the OTC Pink market. However, Cano
can provide no assurance that its common stock will be quoted on
the OTC Pink market or continue to trade in any other forum.
About Cano Petroleum
Cano Petroleum, Inc., is an independent Texas-based energy
producer with properties in the mid-continent region of the United
States. Cano's primary focus is on increasing domestic production
from proven fields using enhanced recovery methods. Cano trades
on the NYSE Amex Stock Exchange under the ticker symbol CFW.
The Company reported a net loss of $185.70 million on
$26.12 million of total operating revenues for the year ended
June 30, 2011, compared with a net loss of $11.54 million on
$22.85 million of total operating revenues during the prior year.
The Company's balance sheet at June 30, 2011, showed
$65.43 million in total assets, $118.80 million in total
liabilities, and a $53.36 million total stockholders' deficit.
Hein & Associates LLP, in Dallas, Texas, noted that the Company
has suffered recurring losses from operations and has a net
capital deficiency that raise substantial doubt about its ability
to continue as a going concern.
Bankruptcy Warning
In the past, the Company's strategy had been to convert its
estimated proved undeveloped reserves into proved producing
reserves, improve operational efficiencies in its existing
properties and acquire accretive proved producing assets suitable
for secondary and enhanced oil recovery at low cost. Due to the
Company's current financial constraints, including continued
losses, defaults under the Company's loan agreements and the
Company's Series D Preferred Stock, no available borrowing
capacity, constrained cash flow, negative working capital, and
limited to no other capital availability, the Company is reviewing
strategic alternatives which include the sale of the Company, the
sale of some or all of the Company's existing oil and gas
properties and assets, potential business combinations, debt
restructuring, including recapitalizing the Company, and
bankruptcy. The Company continues to focus on cash management and
cost reduction efforts to improve both its cash flow from
operations and profitability.
CCH II LLC: Fitch Affirms 'BB-' Issuer Default Rating
-----------------------------------------------------
Fitch Ratings has affirmed the 'BB-' Issuer Default Rating (IDR)
assigned to CCH II, LLC, CCO Holdings, LLC (CCOH) and Charter
Communications Operating, LLC (CCO). Each of CCH II, LLC, CCOH
and CCO are indirect wholly owned subsidiaries of Charter
Communications, Inc. (Charter). Fitch has also affirmed the
specific issue ratings assigned to Charter's various subsidiaries
as outlined below. The Rating Outlook for all of Charter's
ratings is Stable. Approximately $12.5 billion of debt (principal
value) outstanding as of Sept. 30, 2011 is affected by Fitch's
action.
Fitch's ratings incorporate Charter's more viable capital
structure, improving financial flexibility and stable liquidity
profile. Additionally the ratings are supported by Charter's size
and scale as the fourth largest cable MSO in the United States.
Fitch believes that Charter's capital structure along with a
relatively stable operating profile positions the company to
generate sustainable amounts of free cash flow (FCF, defined as
cash flow from operations less capital expenditures and
dividends). Charter generated approximately $552 million of FCF
during the latest-12-months (LTM) period ended Sept. 30, 2011,
which followed approximately $702 million of FCF during 2010.
Higher interest costs and increased cash requirement for working
capital purposes have pressured FCF generation during 2011. Fitch
anticipates 2012 FCF generation will be similar to the company's
2011 FCF levels.
CCOH's recent debt issuance along with CCO and CCH II, LLC's
tender for up to $1 billion of outstanding debt are a modest
positive for Charter's credit profile in Fitch's opinion. The
transaction improves the company's overall financial flexibility
by addressing near-term maturities and is in line with Charter's
strategy to simplify its debt structure and extend its maturity
profile. Fitch anticipates Charter's debt structure will continue
evolving into a more traditional hold-co/op-co structure, with
senior unsecured debt issued by CCOH and senior secured debt
issued by CCO, while eliminating the second lien tier of the
company's debt structure and reducing Charter's overall reliance
on secured debt.
Charter's liquidity position is sufficient given the current
rating and is primarily supported by the borrowing capacity from
CCO's $1.3 billion revolver (available for borrowing was
approximately $1.1 billion as of Sept. 30, 2011 and $826 million
after considering the tender offer) and expected free cash flow
generation. As of Sept. 30, 2011, Charter had the capability to
draw its entire available revolver and maintain compliance with
leverage maintenance tests. Commitments under the revolver will
expire on March 6, 2015. Prior to the tender offer, Charter had
approximately $938 million of debt scheduled to mature during 2012
followed by $230 million in 2013 and $1.0 billion in 2014.
Ratings concerns center on Charter's elevated financial leverage
(relative to other large cable multiple system operators [MSOs]),
a comparatively weaker subscriber clustering profile and service
penetration rates that lag behind industry leaders. Moreover
Charter's ability to adapt to the evolving operating environment
while maintaining its relative competitive position given the
challenging competitive environment and weak housing and
employment trends remains a key consideration. Importantly
Charter continues to deploy DOCSIS 3.0 and switched digital video
throughout its cable plant, which positions the company to
efficiently manage its cable plant bandwidth and innovate its
service offerings.
Debt outstanding as of Sept. 30, 2011 totaled $12.5 billion
(principal value), of which 27% was senior secured. Leverage for
the LTM period ended Sept. 30, 2011 was 4.7 times (x), just
outside the company's leverage target of between 4x and 4.5x.
Fitch believes that Charters credit profile will improve modestly
during the ratings horizon with leverage declining to 4.5x by the
end of 2012 and approach 4x by the end of 2014.
The Stable Outlook reflects Fitch's belief that the company will
continue to extend its maturity schedule and Fitch's expectation
that Charter's operating profile will not materially decline
during the near term in the face of competition and poor housing
and employment conditions.
Positive rating actions would be contemplated as leverage declines
below 4.5x, and the company demonstrates progress in closing gaps
relative to its industry peers on service penetration rates and
strategic bandwidth initiatives. Fitch believes that negative
rating actions would likely coincide with a leveraging
transaction, the adoption of a more aggressive financial strategy,
or a perceived weakening of Charter's competitive position.
Fitch affirms the following ratings:
CCH II, LLC
-- IDR at 'BB-';
-- Senior unsecured debt at 'B+'.
CCO Holdings, LLC
-- IDR at 'BB-';
-- Senior secured term loan at 'BB+';
-- Senior unsecured debt at 'BB-'.
Charter Communications Operating, LLC
-- IDR at 'BB-';
-- Senior secured credit facility at 'BB+';
-- Senior secured second lien notes at 'BB+'.
CD & A: Case Summary & 8 Largest Unsecured Creditors
----------------------------------------------------
Debtor: CD & A Ventures, Ltd.
5127 Sea Pines Drive
Dallas, TX 75287
Bankruptcy Case No.: 11-43636
Chapter 11 Petition Date: December 5, 2011
Court: U.S. Bankruptcy Court
Eastern District of Texas (Sherman)
Debtor's Counsel: Joyce W. Lindauer, Esq.
8140 Walnut Hill Lane, Suite 301
Dallas, TX 75231
Tel: (972) 503-4033
Fax: (972) 503-4034
E-mail: courts@joycelindauer.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
The Company?s list of its eight largest unsecured creditors filed
with the petition is available for free at:
http://bankrupt.com/misc/txeb11-43636.pdf
The petition was signed by Derik J. Albertson, general partner.
CHINA GINSENG: Posts $412,200 Net Loss in Sept. 30 Quarter
----------------------------------------------------------
China Ginseng Holdings, Inc., filed its quarterly report on Form
10-Q, reporting a net loss of $412,259 on $892,405 of revenues for
the three months ended Sept. 30, 2011, as compared to a net loss
of $308,453 on $53,298 of revenues for the three months ended
Sept. 30, 2010.
The Company's balance sheet at Sept. 30, 2011, showed $9.6 million
in total assets, $4.8 million in total liabilities, and
stockholders' equity of $4.8 million.
The Company had an accumulated deficit of $3.2 million as of
Sept. 30, 2011
As reported in the TCR on Oct. 20, 2011, Meyler & Company, LLC, in
Middletown, N.J., expressed substantial doubt about China
Ginseng's ability to continue as a going concern, following the
Company's results for the fiscal year ended June 30, 2011. The
independent auditors noted that the Company has incurred an
accumulated deficit of $2.8 million since inception, and
there are existing uncertain conditions the Company faces relative
to its ability to obtain working capital and operate successfully.
A complete text of the Form 10-Q is available for free at:
http://is.gd/4VbQXL
China Ginseng Holdings, Inc., headquartered in Changchun City,
China, was incorporated on June 24, 2004, in the State of Nevada.
Since its inception in 2004, the Company has been engaged in the
business of farming, processing, distribution and marketing of
fresh ginseng. Starting August 2010, the Company has gradually
shifted its business focus from farming and selling ginseng to
producing and selling ginseng juice and wine with its crops as raw
materials, although it still maintains its farming and selling
ginseng business. Through leases, the Company controls 3,705
acres of land approved by the Chinese government for ginseng
planting and approximately 750 acres of grape vineyards which are
harvested annually.
CIRCLE STAR: Signs Letter Agreement with Ingebritson, et al.
------------------------------------------------------------
Circle Star Energy Corp. entered into a letter agreement with
Ingebritson Energy LLC, GTP Energy Partners, LLC, Wind Rush
Energy, LLC, Gabriel Barerra and Charles T. Brackett with a stated
execution date of Dec. 1, 2011. The Letter Agreement is effective
Nov. 1, 2011. Pursuant to the Letter Agreement, the Company will
purchase from the Sellers certain interests in oil and gas
properties within the Redfish 56 Prospect in Glasscock County,
Texas. In return, the Sellers will receive 203,572 shares of
common stock of the Company and the Company will assume the
responsibility for payment of certain operating expenses and
capital expenditures.
The Company has ninety days from the Execution Date to undertake
due diligence on the Property. The Company may submit a notice to
the Sellers regarding defects in the title of the Property or
environmental defects. If a Defect Notice is submitted, the
Sellers have five days to cure the defect. If the defect is cured
within the Cure Period then there will be no adjustment in the
Purchase Price. If the defect is not cured within the Cure Period
then the Company can reduce the Purchase Price proportionally
based on the lost value to the Property as a result of the defect,
or the Company can re-assign the portion of the Property that is
affected by the environmental defect.
The Letter Agreement may be terminated by: (a) mutual consent of
the Company and the Sellers, (b) the Company delivering notice of
defect to the Sellers within 10 days of the conclusion of the Due
Diligence Period and all of the conditions of the dispute
resolution provisions of the Letter Agreement are not satisfied
and such noncompliance will not have been caused or waived by the
actions or inactions of the Company, and (c) by the Company if the
total aggregate amount of the environmental and title defects
exceeds $25,000.
A full-text copy of the Letter Agreement is available at:
http://is.gd/FurLkp
About Circle Star
Houston, Tex.-based Circle Star Energy Corp. owns royalty,
leasehold, operating, net revenue, net profit, reversionary and
other mineral rights and interests in certain oil and gas
properties in Texas. The Company's properties are in Crane,
Scurry, Victoria, Dimmit, Zavala, Grimes, Madison, Robertson,
Fayette, and Lee Counties.
The Company's balance sheet at July 31, 2011, showed $3.7 million
in total assets, $5.8 million in total liabilities, and a
stockholders' deficit of $2.1 million.
The Company has sustained losses in all previous reporting periods
with an inception to date loss of $3.8 million as of July 31,
2011. "There is substantial doubt about the Company's ability to
continue as a going concern," the Company said in the filing.
CIRCLE STAR: Presents at 4th Annual LD Micro Growth Conference
--------------------------------------------------------------
Circle Star Energy Corp. announced that Chairman and CEO S.
Jeffrey Johnson presented at the LD MICRO Growth Conference on
Thursday, Dec. 8.
Approximately 101 companies presented at the conference. The
event was held at the Luxe Sunset Bel Air Hotel in Los Angeles,
California. The LD MICRO Invitational showcases some of the
fastest growing and profitable names on the OTC, NASDAQ, and NYSE.
About Circle Star
Houston, Tex.-based Circle Star Energy Corp. owns royalty,
leasehold, operating, net revenue, net profit, reversionary and
other mineral rights and interests in certain oil and gas
properties in Texas. The Company's properties are in Crane,
Scurry, Victoria, Dimmit, Zavala, Grimes, Madison, Robertson,
Fayette, and Lee Counties.
The Company's balance sheet at July 31, 2011, showed $3.7 million
in total assets, $5.8 million in total liabilities, and a
stockholders' deficit of $2.1 million.
The Company has sustained losses in all previous reporting periods
with an inception to date loss of $3.8 million as of July 31,
2011. "There is substantial doubt about the Company's ability to
continue as a going concern," the Company said in the filing.
CIRCLE STAR: To Acquire Permian Basin Oil Production
----------------------------------------------------
Circle Star Energy Corp. announced the acquisition of a 3.167%
non-operated interest in the Glass Prospect, located in Glasscock
County, Texas. The Company will issue an aggregate of
approximately 203,500 common shares of the Company (valued at
approximately $380,677) to five sellers as consideration for the
acquisition. Year-to-date cash flow from the project has averaged
approximately $4,000 per month. The acquisition is subject to due
diligence by the Company and customary closing conditions. There
are no assurances that these conditions will be satisfied,
fulfilled or waived.
The Acquisition Shares have not and will not be registered under
the United States Securities Act of 1933, as amended, or the laws
of any state of the United States. Accordingly, the Acquisition
Shares are "restricted securities" and may not be offered or sold
in the United States absent registration or an applicable
exemption from the registration requirements of the Securities
Act. The Acquisition Shares will be placed pursuant to exemptions
from the registration requirements of the Securities Act provided
by Section 4(2) thereof.
The project area encompasses 1,280 gross acres and 640 net mineral
acres located in the oil-rich Permian basin region and is operated
by Apache Corporation. The operator has already drilled 4
Spraberry wells and is evaluating the potential for additional
development.
Covering 2,500 square miles and six Texas counties, the Spraberry
Formation is one of the largest in the nation for total proved
reserves. The formation produces oil from a single enormous
sedimentary unit located between the depths of 5,100 and 8,300
feet. In 2007, the U.S. Department of Energy ranked the Spraberry
Trend third in the United States by total proved reserves and
seventh in total production. Estimated reserves for the entire
Spraberry-Dean unit exceed 10 billion barrels. To-date the
formation has produced an estimated one billion barrels of oil.
While development on the Glass Prospect leases has focused on the
Spraberry formation to-date, the project is prospective for both
Fusselmen and Cline Shale opportunities. Apache is actively
drilling horizontal Cline shale wells in the same field as the
Glass prospect, and a recent Cline well drilled by Apache produced
8,800 bbl of oil equivalent in the first 30 days on-line.
Company CEO Jeff Johnson comments, "We are very pleased to
announce this latest opportunity for our shareholders. It expands
our overall asset mix, and perhaps most importantly, strengthens
and broadens our relationship with a growing number of top-notch
operators working throughout the region. Our immediate aim has
been to develop opportunities to increase our asset portfolio and
industry profile, and we couldn't be more pleased with the recent
results of those efforts."
Further details regarding the Company, its appointments, finances
and agreements are filed as part of the Company's continuous
public disclosure as a reporting issuer under the Securities
Exchange Act of 1934, as amended, filed with the Securities and
Exchange Commission's EDGAR database. For more information visit:
www.circlestarenergy.com.
About Circle Star
Houston, Tex.-based Circle Star Energy Corp. owns royalty,
leasehold, operating, net revenue, net profit, reversionary and
other mineral rights and interests in certain oil and gas
properties in Texas. The Company's properties are in Crane,
Scurry, Victoria, Dimmit, Zavala, Grimes, Madison, Robertson,
Fayette, and Lee Counties.
The Company's balance sheet at July 31, 2011, showed $3.7 million
in total assets, $5.8 million in total liabilities, and a
stockholders' deficit of $2.1 million.
The Company has sustained losses in all previous reporting periods
with an inception to date loss of $3.8 million as of July 31,
2011. "There is substantial doubt about the Company's ability to
continue as a going concern," the Company said in the filing.
CLARE OAKS: Files for Chapter 11 Bankruptcy Protection
------------------------------------------------------
Alyssa Gerace at Senior Housing News reports that Sisters of St.
Joseph of the Third Order of St. Francis filed for Chapter 11
bankruptcy protection in the U.S. Bankruptcy Court for the
Northern District of Illinois, Eastern Division, to restructure
the debt of Clare Oaks, a Bartlett, Illinois, located continuing
care retirement community,
According to the report, the community plans to restructure its
debt with the help of Paul Rundell, a certified insolvency
restructuring advisor and certified turnaround professional.
The report relates Mr. Rundell said the reason for the voluntary
bankruptcy filing stems from the company failing to negotiate an
out-of-court restructuring with its pre-bankruptcy secured
lenders.
"Senior living facilities have experienced substantial declines in
occupancy as a result of market changes," the report quotes Mr.
Rundell as saying. "Because of these challenging market
conditions, [Clare Oaks] has experienced lower than anticipated
revenue and a slower than anticipated fill up of the Clare Oaks
Campus, which has caused the Debtor to default under its bond
obligations."
The report says the company's assets as of June 30 were stated at
$107.2 million, with a debt of $136.9 million, and a recorded
revenue of $19 million for the fiscal year that ended on that
date. The community is managed by an affiliate of Life Care
Services LLC, and will continue to operate, according to a
statement by Michael Hovde Jr., the president of the non-profit's
board.
Sisters of St. Joseph of the Third Order of St. Francis
-- http://www.ssj-tosf.org/-- is a Franciscan Congregation
founded in Steven's Point, Wisconsin in 1901, to help care for and
teach the waves of new immigrants in that area.
CLARE OAKS: Case Summary & 20 Largest Unsecured Creditors
---------------------------------------------------------
Debtor: Clare Oaks
801 W. Bartlett Road
Bartlett, IL 60103
Bankruptcy Case No.: 11-48903
Chapter 11 Petition Date: December 5, 2011
Court: U.S. Bankruptcy Court
Northern District of Illinois (Chicago)
Judge: Pamela S. Hollis
Debtor's Counsel: David R. Doyle, Esq.
UNGARETTI & HARRIS LLP
Three First National Plaza
70 W. Madison Street, Suite 3500
Chicago, IL 60602
Tel: (312) 977-4400
E-mail: drdoyle@uhlaw.com
- and ?
George R. Mesires, Esq.
UNGARETTI & HARRIS LLP
Three First National Plaza
70 W. Madison Street, Suite 3500
Chicago, IL 60602
Tel: (312) 977-4151
Fax: (312) 977-4405
E-mail: grmesires@uhlaw.com
- and ?
Patrick F. Ross, Esq.
UNGARETTI & HARRIS LLP
Three First National Plaza
70 W. Madison Street, Suite 3500
Chicago, IL 60602
Tel: (312) 977-4126
E-mail: pfross@uhlaw.com
Debtor?s
Operations
Consultant: NORTH SHORES CONSULTING
Debtor?s
Financial
Advisor: CONTINUUM DEVELOPMENT SERVICES
Debtor?s Advisor: ALVAREZ & MARSAL HEALTHCARE INDUSTRY GROUP, LLC
Debtor?s
Communications
Advisor: SHEILA KING MARKETING + PUBLIC RELATIONS
Estimated Assets: $100,000,001 to $500,000,000
Estimated Debts: $100,000,001 to $500,000,000
The petition was signed by Michael D. Hovde, Jr., president.
Debtor's List of Its 20 Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
------ --------------- ------------
Pharmerica, Inc. Trade Debt $69,145
818 Thorndale Avenue
Bensenville, IL 60106-1138
SYSCO Food Services-Chicago, Inc. Trade Debt $31,090
250 Wieboldt Drive
Des Plaines, IL 60016-3192
Larson Allen LLP Trade Debt $18,224
600 Washington Avenue, Suite 1800
St. Louis, MO 63101
Freemanwhite, Inc. Trade Debt $7,500
Summit Litho Trade Debt $6,751
Whirlpool National, Inc. Trade Debt $3,873
Pizzo & Associates, Ltd. Trade Debt $3,358
Comcast Cable Trade Debt $3,198
Althoff Industries, Inc. Trade Debt $3,054
Careerbuilder, LLC Trade Debt $3,000
Nicor Gas Trade Debt $2,279
Tel-Tron Technologies Corporation Trade Debt $2,000
Honoring Aging, Inc. Trade Debt $1,873
Get Fresh Produce, Inc. Trade Debt $1,730
Grainger, Inc. Trade Debt $1,564
Elderlife Financial Services, LLC Trade Debt $1,050
Supreme Lobster and Seafood Trade Debt $1,013
Company
Polaris Group Trade Debt $884
Alsco, Inc. Trade Debt $839
Daily Herald Trade Debt $816
CLEAN TRANSPORTATION: Posts $207,500 Net Loss in Third Quarter
--------------------------------------------------------------
Clean Transportation Group, Inc., filed its quarterly report on
Form 10-Q, reporting a net loss of US$207,511 on US$148,340 of
sales for the three months ended Sept. 30, 2011, compared with a
net loss of US$17,785 on US$0 sales for the same period of 2010.
For the nine months ended Sept. 30, 2011, the Company has reported
a net loss of US$417,973 on US$198,145 of sales, compared with a
net loss of US$45,742 on US$0 sales for the corresponding period
last year.
The Company's balance sheet at Sept. 30, 2011, showed
US$1.0 million in total assets, US$815,182 in total current
liabilities, and stockholders' equity of US$217,666.
"The Company has sustained recurring losses, has accumulated
deficit and a deficit in working capital. This raises substantial
doubt about the Company?s ability to continue as a going concern."
A complete text of the Form 10-Q is available for free at:
http://is.gd/nfv6bD
Headquartered in Vancouver, Canada, Clean Transportation Group,
Inc., was organized Aug. 23, 1978, under the laws of the State of
Utah as Price Card & Gift, Inc. On June 27, 2008, the Company
changed its name to Quintana Gold Resources Corp. and on April 18,
2011, the Company amended its articles of incorporation changing
the name to Clean Transportation Group, Inc. The Company receives
revenues from the sale of fuel cleaning systems.
CN DRAGON: Posts $43,800 Net Loss in Sept. 30 Quarter
-----------------------------------------------------
CN Dragon Corporation filed its quarterly on Form 10-Q, reporting
a net loss of $43,893 on $26,561 of revenues for the three months
ended Sept. 30, 2011, compared with a net loss of $335,524 on $0
revenue for the three months ended Sept. 30, 2010.
For the six months ended Sept. 30, 2011, the Company has reported
a net loss of $63,974 on $53,354 of revenues, compared with a net
loss of $321,004 on $363,704 of revenues for the six months ended
Sept. 30, 2010.
The Company's balance sheet as of Sept. 30, 2011, showed
$1.7 million in total assets, $379,076 in total liabilities, all
current, and stockholders' equity of $1.3 million.
Albert Wong & Co., in Hong Kong, expressed substantial doubt about
CN Dragon Corporation's ability to continue as a going concern,
following the Company's results for the fiscal year ended
March 31, 2011. The independent auditors noted that the Company
has not generated significant revenues since inception and has
never paid any dividends and is unlikely to pay dividends or
generate significant earnings in the immediate or foreseeable
future. For the year ended March 31, 2011, the Company has
generated revenue of $451,710 and has incurred an accumulated
deficit $7,739,848.
A complete text of the Form 10-Q is available for free at:
http://is.gd/IJQ9H6
About CN Dragon
Based in Hong Kong, China, CN Dragon Corporation was incorporated
under the laws of the State of Nevada on Aug. 30, 2001, under
the name Infotec Business Systems, Inc. On June 8, 2007, the
Company changed its name to Wavelit, Inc. On Sept. 14, 2009,
the Company changed its name to CN Dragon Corporation and began
new business operations in the PRC. On May 17, 2010, the Company
acquired CNDC Corporation, as its wholly-owned subsidiary.
On May 17, 2010, pursuant to the terms of the Agreement for Share
Exchange, the Company acquired CNDC Corporation ("CNDC BVI"), and
its wholly-owned subsidiaries, CN Dragon Holdings Limited ("CN
Dragon Holdings") and Zhengzhou Dragon Business Limited
("Zhengzhou Dragon").
CNDC BVI was established under the laws of the British Virgin
Islands on March 26, 2008. The Company currently operates through
itself and two subsidiaries, CN Dragon Holdings Limited and
Zhengzhou Dragon Business Limited which were incorporated in Hong
Kong and the People's Republic of China (the PRC) respectively.
The Company and its subsidiaries are engaged and specialized in
investment, development and fund management in hospitality
properties, as well as advisory and consulting services to the
hospitality, tourism and real estate industries in the PRC.
COMPETITIVE TECHNOLOGIES: Joseph Finley Holds 5.8% Equity Stake
---------------------------------------------------------------
In a Schedule 13G filing with the U.S. Securities and Exchange
Commission, Joseph M. Finley disclosed that, as of Nov. 29, 2011,
he beneficially owns 861,288 shares of common stock of Competitive
Technologies, Inc., representing 5.8% of the shares outstanding.
A full-text copy of the filing is available at http://is.gd/9zMWRq
About Competitive Technologies
Fairfield, Conn.-based Competitive Technologies, Inc. (OTC QX:
CTTC) -- http://www.competitivetech.net/-- was established in
1968. The Company provides distribution, patent and technology
transfer, sales and licensing services focused on the needs of its
customers and matching those requirements with commercially viable
product or technology solutions. Sales of the Company's
Calmare(R) pain therapy medical device continue to be the major
source of revenue for the Company.
As reported in the Troubled Company Reporter on Nov. 2, 2010,
Mayer Hoffman McCann CPAs, in New York, expressed substantial
doubt about Competitive Technologies' ability to continue as a
going concern, following the Company's results for the fiscal year
ended July 31, 2010. The independent auditors noted that at
July 31, 2010, the Company has incurred operating losses since
fiscal year 2006.
The Company also reported a net loss of $1.84 million on
$3.33 million of product sales for the nine months ended Sept. 30,
2011, compared with a net loss of $2.30 million on $1.67 million
of product sales for the nine months ended Oct. 31, 2010.
The Company's balance sheet at Sept. 30, 2011, showed
$5.95 million in total assets, $6.36 million in total liabilities,
all current, and a $409,428 total shareholders' deficit.
COMSTOCK RESOURCES: S&P Alters Outlook on 'BB-' Rating to Negative
------------------------------------------------------------------
Standard & Poor's Ratings Services revised its outlook on Frisco,
Texas-based Comstock Resources to negative from stable and
affirmed the 'BB-' corporate credit rating.
"We revised the recovery rating on the company's senior unsecured
debt to '5' from '6', indicating our expectation of modest (10% to
30%) recovery for lenders in the event of a default and as a
result raised the issue rating one notch to 'B+' from 'B'," S&P
said.
"The revised outlook on Comstock reflects the incremental debt
leverage and tighter liquidity associated with the announced $333
million acquisition of properties in the Delaware Basin, West
Texas from privately held Eagle Oil & Gas Co.," said Standard &
Poor's credit analyst Carin Dehne-Kiley. The revised outlook also
reflects added uncertainty regarding production growth and costs
in what will be a new operating area for Comstock. Although the
acquisition increases Comstock's projected oil production in 2012,
the company remains highly levered to weak natural gas prices.
The revised recovery rating and issue-level rating reflect a
higher PV-10 valuation based on mid-year 2011 proven reserves as
well as the proven reserves associated with the announced
acquisition.
"Comstock is acquiring proven reserves of 23.2 million barrels of
oil equivalent (75% oil and 10% developed), and 1.4 thousand boe
per day of production, which adds 13% to its year-end 2010 proven
reserve base and 3% to its total equivalent production. The
acquisition also adds 44,000 net acres prospective in the Bone
Spring and Wolfcamp oil shales. The deal establishes a new core
operating area for Comstock in the Permian Basin of West Texas
(the Delaware Basin is located in the western Permian Basin),
where the company has recently acquired 12,000 net acres in
separate transactions, and we expect will continue to expand. The
acquisition is slated to close by year-end 2011," S&P said.
"Comstock will fund the acquisition by drawing down on its
revolving credit facility ($700 million borrowing base post-deal),
increasing its projected debt to EBITDA to 3.7x at year-end 2011
and 3.3x at year-end 2012, from about 3x for both years prior to
the deal. Our estimates account for a substantial increase in
capital spending next year to $545 million from $380 million
previously, with $170 million allocated to the newly-acquired
assets, which we estimate will exceed operating cash flow by about
$200 million. We expect this capital program to increase
Comstock's crude oil production to 20% of its total volumes by
year-end 2012, up from 4%," S&P said.
"The 'BB-' rating on Comstock reflects our expectation that
natural gas prices will remain weak over the medium-term, which
will pressure the company's profitability while it shifts capital
to oil projects. Additional factors we incorporate are Comstock's
small and geographically concentrated reserve base and our
estimate that the company will outspend operating cash flows in
2011 and 2012. Our ratings also take into account Comstock's
experienced management team and competitive cost structure," S&P
said.
"The negative outlook reflects our view that the company's debt
leverage will increase over the next 12 months to levels slightly
above our expectations for the rating category, while liquidity
tightens. The outlook also reflects the increased uncertainty
regarding production growth and costs in a new operating area for
Comstock, and its still high leverage to weak natural gas prices.
We could lower the rating if debt-to-EBITDA exceeds 3.5x for a
sustained period, which would most likely occur as a result of oil
production from the Permian acquisition not ramping up as
expected. We could revise the outlook to stable if debt-to-EBITDA
returns to the 3.0x level," S&P said.
CONESTOGA NEWS: Voluntary Chapter 11 Case Summary
-------------------------------------------------
Debtor: Conestoga News Service, Inc.
Route 30, 98
Dorset, VT 05251
Bankruptcy Case No.: 11-11071
Chapter 11 Petition Date: December 5, 2011
Court: United States Bankruptcy Court
District of Vermont (Rutland)
Judge: Colleen A. Brown
Debtor's Counsel: John R. Canney, III, Esq.
P.O. Box 6626
Rutland, VT 05702-6626
Tel: (802) 773-3325
Fax: (802) 773-3399
E-mail: AttyCanney@aol.com
Scheduled Assets: $2,142,358
Scheduled Debts: $1,172,086
The Debtor did not file a list of its largest unsecured creditors
together with its petition.
The petition was signed by Linda McGinnis, manager.
CONSOL ENERGY: Moody's Confirms 'Ba3' Corporate Family Rating
-------------------------------------------------------------
Moody's Investors Service confirmed the Corporate Family Ratings
(CFR) of Consol Energy Inc. at Ba3 and the ratings of Consol's
senior unsecured debt at B1. The outlook is stable. This concludes
the review initiated in August 2011 following CONSOL's
announcement that it has entered into an agreement with Noble
Energy, Inc. (Noble; Baa2, stable) for the joint development of
CONSOL's 628,000 Marcellus Shale acres in Pennsylvania and West
Virginia.
Outlook Actions:
Issuer: CONSOL Energy Inc.
-- Outlook, Changed To Stable From Rating Under Review
Confirmations:
Issuer: CONSOL Energy Inc.
-- Probability of Default Rating, Confirmed at Ba3
-- Corporate Family Rating, Confirmed at Ba3
-- Senior Unsecured Regular Bond/Debenture, Confirmed at B1,
LGD4 - 66%
RATINGS RATIONALE
The rating reflects risks stemming from the persistently low
natural gas prices, as well as some of the challenges facing the
US coal industry. While Moody's still expects that CONSOL's recent
joint ventures with Noble and Hess Corporation (Hess; Baa2,
stable) will provide strategic benefit to CONSOL, Moody's believes
that the company's ability to ramp up production in its gas
division will be hampered by the low natural gas prices.
The rating considers the fact that joint venture transactions
incorporate significant cash payments to Consol over the next
several years, and Moody's expectation that Consol will benefit
from the expertise and know-how of its partners, while reducing
its otherwise substantive capital expenditures. Moody's notes,
however, that Noble's obligation to carry 33% of Consol's share of
joint venture's drilling and completion costs gets suspended once
gas prices fall below $4.00 per MMBtu for three consecutive months
and does not resume until gas prices stay above $4.00 per MMBtu
for three consecutive months. In light of the fact that Henry Hub
natural gas spot price stayed below $4.00/MMBtu since early
September, and Moody's expectation that gas prices will hover
around the $4.00 mark throughout 2012, Moody's believes that
Consol will not be able to benefit from joint venture carry
payments to the level previously anticipated. Moody's also
believes that the partners are likely to delay their capital
investment plans in light of these conditions, which would prevent
the ramp up in gas production at the levels previously
anticipated.
Consol's ratings also take into account the challenges facing its
coal division and the US coal industry as a whole, including
falling domestic consumption of coal as a result of fuel switching
in favor of natural gas and other sources, uncertainties stemming
from regulatory developments targeting carbon and other emissions,
as well as escalating costs due to enhanced federal scrutiny over
mine safety. Moody's believes that the company's margins will
become pressured if natural gas prices stay at their current
levels, while the company's coal division experiences falling
production volumes combined with increasing per-unit costs.
Consol's ratings continue to reflect the company's leading
position in the Northern Appalachian coal basin, meaningful
metallurgical (met) coal production, sizable presence in the gas
business, large reserves of coal and natural gas, and generally
large scale mines. The rating also recognizes its strong operating
cash flow and the stability provided by its long-term thermal coal
supply agreements. On the other hand, the ratings consider the
company's heightened leverage following last year's acquisitions
of the gas operations of Dominion Resources and the 17% of CNX Gas
that it did not already own, as well as the higher risk profile
associated with the Gas Division, one facet of which is the
sizable development costs. In addition, the rating considers
Consol's sizable pension, OPEB, workers' compensation and
reclamation liabilities.
Consol's Marcellus Shale joint venture with Noble allows Noble to
acquire a 50% interest in roughly 600k acres for consideration of
$1.0 billion over three years. In addition, Noble is to pay
roughly $2.1 billion for 33% of CONSOL's share of the well
development costs. Noble's carry obligations get suspended if gas
prices track at less than $4.00/ MMBtu for three consecutive
months. This transaction helps CONSOL recoup a large portion of
the total amount spent to acquire Dominion in 2010. CONSOL's Utica
Shale joint venture with Hess allows Hess to acquire a 50%
interest in roughly 200k acres for $60 million upfront and an
additional $534 million in the form of a 50% drilling carry of
CONSOL's share of the development costs.
Consol's ratings could be raised if the company's EBIT margins
remain sustainable at presently strong levels (13%-18%), (CFO-
Dividends)/ Debt remains sustainable at over 20%, free cash flow
is not persistently negative, its EBIT/ Interest ratio is in 3.5x-
4.0x range on a sustainable basis, and debt to capital ratio falls
below 50%.
Consol's ratings could come under pressure if EBIT margins fall
below 3%, (CFO-Dividends)/ Debt falls below 10%, free cash flow is
persistently negative, its EBIT/ Interest ratio falls below 2.5x,
or debt to capital ratio approaches 65% .
The principal methodology used in rating Consol Energy Inc was the
Global Mining Industry Methodology published in May 2009. Other
methodologies used include Loss Given Default for Speculative-
Grade Non-Financial Companies in the U.S., Canada and EMEA
published in June 2009.
Consol is a leading diversified fuel producer in the Eastern U.S.
It has 4.4 billion tons of coal reserves and 3.7 trillion cubic
feet of proven gas reserves. The company generated $5.8 billion in
revenues for the twelve months through September 30, 2011.
CONSOLIDATION SERVICES: Posts $114,300 Net Loss in Third Quarter
----------------------------------------------------------------
Consolidation Services, Inc., filed its quarterly report on Form
10-Q, reporting a net loss of $114,307 on $74,846 of oil and gas
for the three months ended Sept. 30, 2011, compared with a net
loss of $501,211 on $70,861 of oil and gas revenues for the same
period in 2010.
For the nine months ended 30, 2011, the Company has reported a
net loss of $947,250 on $239,973 of oil and gas revenues, compared
with a net loss of $2.2 million on $137,836 of oil and gas
revenues for the same period last year.
The Company's balance sheet at Sept. 30, 2011, showed $5.2 million
in total assets, $405,764 in total liabilities, and stockholders'
equity of $4.8 million.
GBH CPAs, PC, in Houston, Texas, expressed substantial doubt about
Consolidation Services' ability to continue as a going concern,
following the Company's 2010 results. The independent auditors
noted that the Company sustained losses from operations for the
year ended Dec. 31, 2010, of $13.2 million, has inadequate working
capital to maintain or develop its operations, and is dependent
upon funds from lenders, investors and the support of certain
stockholders.
A complete text of the Form 10-Q is available for free at:
http://is.gd/H6vvjo
Las Vegas, Nev.-based Consolidation Services, Inc., was
incorporated in the State of Delaware on Jan. 26, 2007. The
Company is engaged in the exploration and development of oil and
gas properties in Kentucky and Tennessee.
CONSTRUCTION L2: Case Summary & 12 Largest Unsecured Creditors
--------------------------------------------------------------
Debtor: Construction L2, Inc.
16741 Gulf Blvd.
St. Petersburg, FL 33708
Bankruptcy Case No.: 11-22235
Chapter 11 Petition Date: December 5, 2011
Court: United States Bankruptcy Court
Middle District of Florida (Tampa)
Judge: Michael G. Williamson
Debtor's Counsel: Adam L. Alpert, Esq.
BUSH ROSS P.A.
Post Office Box 3913
Tampa, FL 33601-3913
Tel: (813) 224-9255
Fax: (813) 223-9620
E-mail: aalpert@bushross.com
Estimated Assets: $100,001 to $500,000
Estimated Debts: $1,000,001 to $10,000,000
A copy of the list of 12 largest unsecured creditors is
available for free at http://bankrupt.com/misc/flmb11-22235.pdf
The petition was signed by Louis Sanchez, president.
CONVERSION SERVICES: In Default Under Access Capital Loan Pact
--------------------------------------------------------------
Conversion Services International, Inc., on Dec. 5, 2011, received
a letter from Access Capital Inc. stating the Company did not
maintain positive cash flow on a rolling six month basis with
respect to the month ending Oct. 31, 2011, as required by the Loan
And Security Agreement dated March 31, 2008, and as amended April
6, 2011, entered between the Company and Access, and therefore an
event of default existed. Pursuant to the terms of the Agreement,
Access may seek certain remedies, including the right to demand
payment of all amounts owed to them and the right to take
possession of all collateral pledged to them under the Agreement.
During the period the Company is in default of the Agreement, the
interest rate on amounts owed to Access Capital will be 15% per
annum.
About Conversion Services Int'l
Conversion Services International, Inc., and its wholly owned
subsidiaries are principally engaged in the information technology
services industry in these areas: strategic consulting, business
intelligence/data warehousing and data management to its customers
principally located in the northeastern United States.
CSI was formerly known as LCS Group, Inc. In January 2004, CSI
merged with and into a wholly owned subsidiary of LCS. In
connection with this transaction, among other things, LCS changed
its name to "Conversion Services International, Inc."
Friedman LLP expressed substantial doubt about the Company's
ability to continue as a going concern after auditing the
Company's financial reports for 2009 and 2010. The accounting
firm noted that the Company has incurred recurring operating
losses, negative cash flows, is not in compliance with a covenant
associated with its Line of Credit, maturing on March 31, 2011 and
has significant future cash flow commitments.
The Company reported a net loss of $733,505 on $11.31 million
of revenue for the nine months ended Sept. 30, 2011, compared with
a net loss of $796,124 on $13.41 million of revenue for the same
period during the prior year.
The Company's balance sheet at Sept. 30, 2011, showed
$3.15 million in total assets, $6.96 million in total liabilities,
and a $3.81 million total stockholders' deficit.
COTTA PROPERTY: Voluntary Chapter 11 Case Summary
-------------------------------------------------
Debtor: Cotta Property Management, LLC
5350 S. Staples #224
Corpus Christi, TX 78411
Bankruptcy Case No.: 11-20706
Chapter 11 Petition Date: December 5, 2011
Court: U.S. Bankruptcy Court
Southern District of Texas (Corpus Christi)
Judge: Richard S. Schmidt
Debtor's Counsel: Ralph Perez, Esq.
CAVADA LAW OFFICE
4646 Corona Drive, Suite 165
Corpus Christi, TX 78411
Tel: (361) 814-6500
Fax: (361) 814-8618
E-mail: ralph.perez@cavadalawoffice.com
Estimated Assets: $0 to $50,000
Estimated Debts: $1,000,001 to $10,000,000
The Company did not file a list of creditors together with its
petition.
The petition was signed by Frank Cotta, manager.
CROSSOVER FINANCIAL: Taps Matt Call as to Market Colorado Property
------------------------------------------------------------------
Crossover Financial I, LLC, asks the U.S. Bankruptcy Court for the
District of Colorado for permission to employ Matt Call of
Navpoint Real Estate Group as real estate broker in connection
with the sale of the property.
Mr. Call will market these:
1. PARCEL A -- the southwest quarter and the west half of the
southeast quarter of section 19, township 11 south, range 66 west
of the 6th p.m., County of El Paso, State of Colorado.
2. PARCEL B -- the east half of the of the southeast quarter
of section 24, township 11 south, range 66 west of the 6th p.m.,
County of El Paso, State of Colorado.
3. PARCEL C -- the northeast quarter of the northeast quarter
of section 25, township 11 south, range 66 west of the 6th p.m.,
County of El Paso, State of Colorado.
4. PARCEL D -- the north half of the northwest quarter of
section 30, township 11 south, range 66 west of the 6th p.m.,
County of El Paso, State of Colorado.
The Debtor proposes to pay Mr. Call a sale commission of 5.0% of
the gross purchase price (6.0% if a cooperative broker is
involved) out of the gross proceeds of any completed sale of such
property upon separate application and approval of the Court.
To the best of Debtor's knowledge, Mr. Call is a "disinterested
person" as that term is defined in Section 101(14) of the
Bankruptcy Code.
In this relation, the Debtor withdraws its application to appoint
and employ Karen McClaflin of Home Source Realty, LLC as real
estate broker and approve listing contract.
On Oct. 20, 2011, the Debtor filed an employment application,
however, Philip DeCelles and the Bowman Group had filed objections
alleging that the broker may not be qualified to represent the
estate. Ms. McClaflin has also indicated to the Debtor that she
no longer desires to assist in the sale of the property.
About Crossover Financial
Crossover Financial I, LLC, based in Elizabeth, Colorado, was
formed on Aug. 12, 2005. Mitchell B. Yellen is the manager and
sole member. The Company was formed for the purpose of raising
funds through a Private Placement Memorandum to be loaned to an
entity known as HPR, LLC, in connection with the acquisition and
development of 440 acres of real property located in El Paso
County.
HPR consisted of three members: Colorado Commercial Builders, Inc.
(37.5%); DJT, LLC (20.0%); and Yellen Family Partnership, LLLP
(42.5%). Mitchell Yellen held an interest in the Yellen Family
Partnership, LLLP.
The project stalled primarily as a result of a collapse in the
residential real estate development market in 2007 and potential
developers pulled out of the project. There has been no
further development activity on the Real Property since 2007.
Faced with the prospect of a lengthy foreclosure proceeding, the
Debtor entered into to an agreement with HPR whereby the Real
Property was transferred to the Debtor by way of a deed-in-lieu
of foreclosure. Upon acquiring the Real Property, the Debtor
attempted to bring in additional developers to continue the
project but those efforts were unsuccessful.
The Company filed for Chapter 11 bankruptcy (Bankr. D. Colo. Case
No. 11-24257) on June 15, 2011. Judge Sidney B. Brooks presides
over the case.
Stephen C. Nicholls, Esq., at Nicholls & Associates, P.C., in
Denver, serves as bankruptcy counsel. In its petition, the Debtor
estimated assets and debts of $10 million to $50 million. The
petition was signed by Mitchell B. Yellen. Karen McClaflin of
Home Source Realty, LLC, Colorado acts as real estate broker for
the Estate.
Charles F. Mcvay, The United States Trustee for Region 19, said
that a committee under 11 U.S.C. Sec. 1102 has not been appointed
because an insufficient number of persons holding unsecured claims
against Crossover Financial I, LLC, have expressed interest in
serving on a committee.
CYBER OPERATIONS: Case Summary & 20 Largest Unsecured Creditors
---------------------------------------------------------------
Debtor: Cyber Operations, Inc.
fka Cyber Acquisitions, Inc.
153 Cahaba Valley Parkway
Pelham, AL 35124
Bankruptcy Case No.: 11-06107
Chapter 11 Petition Date: December 5, 2011
Court: United States Bankruptcy Court
Northern District of Alabama (Birmingham)
Judge: Thomas B. Bennett
Debtor's Counsel: David Murphree, Esq.
DAVID MURPHREE, LLC
2 North 20th Street, Suite 1340
Birmingham, AL 35203
Tel: (205) 332-1530
Fax: (205) 332-1526
E-mail: david@davidmurphree.com
Scheduled Assets: $3,158,250
Scheduled Debts: $938,306
A list of the Company's 20 largest unsecured creditors filed
together with the petition is available for free at
http://bankrupt.com/misc/alnb11-06107.pdf
The petition was signed by James A. Massey, chairman.
DALLAS HIGH: Case Summary & 8 Largest Unsecured Creditors
---------------------------------------------------------
Debtor: Dallas High Point Centre Associates, Ltd
12225 Greenville Avenue, Suite 118
Dallas, TX 75243
Bankruptcy Case No.: 11-37708
Chapter 11 Petition Date: December 5, 2011
Court: U.S. Bankruptcy Court
Northern District of Texas (Dallas)
Judge: Barbara J. Houser
Debtor's Counsel: Seth P. Crosland, Esq.
ALESHIRE & CROSLAND, PLLC
12160 Abrams Road, Suite 514
Dallas, TX 75243
Tel: (214) 382-3777
Fax: (214) 382-3774
E-mail: seth@acwlawfirm.com
Estimated Assets: $10,000,001 to $50,000,000
Estimated Debts: $10,000,001 to $50,000,000
The petition was signed by M.T. Akhavizadeh, president.
Debtor's List of Its eight Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
------ --------------- ------------
RiverSource Life Insurance Co Deed of Trust $10,441,380
25545 Ameriprise Financial
Minneapolis, MN 55474
Thomson Reuters Arrearage on $6,299
2935 Midway Road Executory Contract
Carrollton TX 75007
Weaver & Tidwell Arrearage on $6,000
12221 Merit Drive, Suite 1400 Executory Contract
Dallas, TX 75220
CBRE Arrearage $5,738
The Plan Place Arrearage $1,200
Center Suites at High Pointe Arrearage $575
Cleaner Image Arrearage $249
Myers Arrearage $127
DE TECHNOLOGIES: Case Summary & 5 Largest Unsecured Creditors
-------------------------------------------------------------
Debtor: DE Technologies, Inc.
1715 Pratt Drive, Suite 3500
Blacksburg, VA 24060
Bankruptcy Case No.: 11-72430
Chapter 11 Petition Date: December 5, 2011
Court: U.S. Bankruptcy Court
Western District of Virginia (Roanoke)
Judge: Ross W. Krumm
Debtor's Counsel: Benjamin Webb King, Esq.
WOODS ROGERS PLC
P.O. Box 14125
Roanoke, VA 24038
Tel: (540) 983-7586
E-mail: wking@woodsrogers.com
Estimated Assets: $10,000,001 to $50,000,000
Estimated Debts: $1,000,001 to $10,000,000
The petition was signed by Douglas L. Mauer, secretary/treasurer.
Debtor's List of Its five Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
------ --------------- ------------
Joyce King Loan $175,000
450 North Barfield Drive
Marko Island, FL 34145
Estate of James Ruble Loan $165,000
1941 June Drive
Roanoke, VA 24019
France Charbonneau Loan $52,500
2332 Boulevard Marie Victorin
Longueuil, Quebec J4G 1B4
Lev Intellectual Property Legal Services $30,000
Consulting
Altitude Tech, LLC Agreement Unknown
DESERT OASIS: Amends Plan to Include Laundry Room Lease Assumption
------------------------------------------------------------------
Desert Oasis Apartmants, LLC, notified the U.S. Bankruptcy Court
for the District of Nevada of its Amended Plan of Reorganization
to provide that the lease of the laundry rooms to WASH Multifamily
Laundry Systems will be assumed.
WASH Multifamily is successor in interest to Web Service Company,
Inc.
The Debtor relates that there are no defaults by either party
under the lease and therefore no cure amounts.
A full-text copy of the motion and the lease is available for free
at http://bankrupt.com/misc/DESERTOASIS_plan_amendment.pdf
As reported in the Troubled Company Reporter on Sept. 14, 2011,
Judge Bruce A. Markell gave the Debtor the go signal to commence
solicitation of votes for their Plan of Reorganization after
approving the explanatory disclosure statement on Sept. 6, 2011.
The Debtor's Amended Plan, filed Sept. 2, provides for one class
of priority claims; one class of secured claims; one class of
unsecured claims; and one class of equity security holders.
Under the Plan, the rights of tenants of the Debtor's apartment
complex in Las Vegas are unimpaired. Wells Fargo Bank, N.A., as
trustee for the Registered Holders of JPMorgan Chase Commercial
Mortgage Pass-Through Certificates, Series 2004-FL1, will receive
distributions which the proponent of the Plan has valued at 100
cents on the dollar. The Plan proposes to pay the Bank's claim in
full over a period of 10 years using the rental income from
Tenants to pay interest at the rate of 4.5% per annum interest and
principal amortized over 25 years and a balloon payment on or
before 10 years. The final payment will be accomplished through
sale or refinancing as the mortgage markets become more normal.
Tenants with priority claims for deposits will be paid 100% in the
normal course of operation of the apartment complex.
Under the Plan, the unsecured claim of Tom Gonzales is unimpaired.
Under the Plan, the unsecured creditors, except insiders, will be
paid over 11 months without interest. Under the Plan, insiders
will agree to subordinate their claims to the claims of other
unsecured creditors. The Plan also provides for the 100% payment
of all other administrative, including fees payable to the Office
of the United States Trustee, and priority claims upon
confirmation.
A full-text copy of the Disclosure Statement, amended Sept. 2, is
available for free at http://ResearchArchives.com/t/s?76e3
About Desert Oasis Apartments
Desert Oasis Apartments LLC owns a garden-style apartment complex
situated across the boulevard from the Mandalay Bay Resort. The
apartment complex is valued at least $6,500,000.
Secured creditor Wells Fargo set a trustee's sale on the apartment
complex for May 11, 2011, but Desert Oasis sought bankruptcy
protection (Bankr. D. Nev. Case No. 11-17208) the day before the
sale. Lenard E. Schwartzer, Esq., at Schwartzer & McPherson Law
Firm, serves as the Debtor's bankruptcy counsel. The Company
disclosed $18,067,242 in assets and $20,291,316 in liabilities as
of the Chapter 11 filing.
DESSOUKY BUSINESS: Case Summary & 12 Largest Unsecured Creditors
----------------------------------------------------------------
Debtor: Dessouky Business Enterprises Corp.
18131 Coit Road
Dallas, TX 75252
Bankruptcy Case No.: 11-43668
Chapter 11 Petition Date: December 5, 2011
Court: U.S. Bankruptcy Court
Eastern District of Texas (Sherman)
Debtor's Counsel: Eric A. Liepins, Esq.
ERIC A. LIEPINS P.C.
12770 Coit Road, Suite 1100
Dallas, TX 75251
Tel: (972) 991-5591
E-mail: eric@ealpc.com
Estimated Assets: $0 to $50,000
Estimated Debts: $1,000,001 to $10,000,000
The Company?s list of its 12 largest unsecured creditors filed
with the petition is available for free at:
http://bankrupt.com/misc/txeb11-43668.pdf
The petition was signed by Yassin Dessouky, president.
DETROIT, MI: Moody's Reviews Ba3 Debt Rating for Downgrade
----------------------------------------------------------
Moody's Investors Service has placed the City of Detroit's (MI)
Ba3 general obligation and certificate of participation debt
ratings, as well as its B1 general obligation limited tax debt
rating, on review for possible downgrade. The ratings for the
city's Water and Sewer Enterprises, each rated A1 for senior lien
revenue debt and A2 for second lien revenue debt, were also placed
on review for possible downgrade. These actions follow the
announcement by the State of Michigan (GO rated Aa2/stable
outlook) Treasurer Andy Dillon that the state will commence a 30
day review of the city's finances on December 6, 2011 to determine
whether a citywide financial emergency exists. Prior to the
action, the outlook for all of these ratings was negative.
The state appointment of an emergency manager would in turn
trigger a termination event under the city's swap agreements,
potentially requiring the city to pay a termination fee, which is
estimated at $400 million (based on November 30th market
valuation) to swap counterparties. The swap agreements are
associated with the city's Series 2006 Certificates of
Participation (COPs), which were issued to partially fund the
city's pension liabilities. $800 million of the city's COPs are in
variable rate mode. The city's swap counterparties are Siebert
Brandford Shank & Co. (unrated), guaranteed by Merrill Lynch
(Baa1/ negative outlook), and UBS (Aa3/review for downgrade).
Additionally, the city faces a heightened risk of filing for
bankruptcy should an emergency manager be appointed. However, the
ultimate credit impact of the appointment of an emergency manager,
if one is appointed, is uncertain as a statewide effort is
underway to place on the November 2012 ballot an action to repeal
the Local Government and School District Fiscal Accountability
Act, which governs the emergency manager process.
The placement of the city's general obligation, certificate of
participation and general obligation limited tax ratings on review
for possible downgrade reflects the aforementioned risks. The
city's water and sewer enterprise ratings are placed on review
given that they are city-owned and may not be completely immune to
the risks associated with a city bankruptcy filing. Appointment of
an emergency manager is a requisite step in the path toward state
approval for bankruptcy filing, although is not necessarily a
strong predictor of bankruptcy. The risk of a bankruptcy filing by
the city is in Moody's view a low risk event, but nonetheless has
a rising probability.
DHILLON GROUP: Case Summary & 20 Largest Unsecured Creditors
------------------------------------------------------------
Debtor: Dhillon Group, LLC
dba Holiday Inn Express
1930 Idaho St.
Elko, NV 89801
Bankruptcy Case No.: 11-53706
Chapter 11 Petition Date: December 5, 2011
Court: United States Bankruptcy Court
District of Nevada (Reno)
Debtor's Counsel: A.J. Kung, Esq.
KUNG & BROWN
214 South Maryland Pkwy, Suite A
Las Vegas, NV 89101
Tel: (702) 382-0883
Fax: (702) 382-2720
E-mail: ajkung@ajkunglaw.com
Scheduled Assets: $5,010,979
Scheduled Debts: $7,645,559
A list of the Company's 20 largest unsecured creditors filed
together with the petition is available for free at
http://bankrupt.com/misc/nvb11-53706.pdf
The petition was signed by Jagmohan Dhillon, managing member.
DOMINION CLUB: HHHunt to Present Reorganization Plan on Dec. 14
---------------------------------------------------------------
Michael Schwartz at Richmond BizSense reports that Daniel Schmitt,
president of HHHunt, said in a letter sent on Dec. 6, 2011, to the
Dominion Club's members that it will take the reorganization plan
to federal court Dec. 14, 2011, for final approval.
According to the report, if the bankruptcy court approves the
plan, club members will receive partial refunds on their hotly
contested initiation deposits. And the club can get back to
business as usual.
The report says, once the judge confirms the plan, it will be
effective in early 2012. The first round of initiation deposit
payments will go out in May.
About The Dominion Club
The Dominion Club, L.C., filed for Chapter 11 protection (Bankr.
E.D. Va. Case No. 11-30187) in Richmond, Virginia, on Jan. 11,
2011. Christian K. Vogel, Esq., and Vernon E. Inge, Jr., Esq., at
LeClairRyan, in Richmond, serves as counsel to the Debtor. In its
bankruptcy petition, the Debtor estimated its assets in the
$1 million to $10 million range and debts in the $10 million to
$50 million range.
Tyler Brown of Hunton Williams represents the creditors committee.
Robbie Westermann, an attorney with Hirschler Fleischer,
represents HHHunt.
DZF PROPERTIES: Hires Charles B. Greene as Counsel
--------------------------------------------------
DZF Properties, LLC, asks the Bankruptcy Court for authority to
employ Charles B. Greene, Esq., as its Chapter 11 counsel. The
Debtor proposes to pay Mr. Greene at $475 hourly rate. The Debtor
deposited $20,000 as retainer fee.
Mr. Greene attests he has no connection with any of the Debtor's
creditors, or any other party in interest or their attorneys; and
represents no interest adverse to the Debtor or the estate in the
matters upon which he is to be employed.
DZF Properties, LLC, based in Los Gatos, California, filed for
Chapter 11 bankruptcy (Bankr. N.D. Calif. Case No. 11-60649) on
Nov. 17, 2011. Judge Arthur S. Weissbrodt presides over the case.
It scheduled $12,750,000 in assets and $8,661,625 in debts. The
petition was signed by David Feece, Sr., the Debtor's managing
member. Mr. Feece has been appointed by the Court as responsible
individual for the Debtor.
DZF PROPERTIES: Sec. 341 Creditors' Meeting on Wednesday
--------------------------------------------------------
The U.S. Trustee for the Northern District of California in San
Jose will convene a first meeting of creditors of DZF Properties,
LLC, pursuant to Sec. 341 of the Bankruptcy Code on Dec. 14, 2011,
at 10:30 a.m. at San Jose Room 268. Proofs of Claim are due by
March 13, 2012.
DZF Properties, LLC, based in Los Gatos, California, filed for
Chapter 11 bankruptcy (Bankr. N.D. Calif. Case No. 11-60649) on
Nov. 17, 2011. Judge Arthur S. Weissbrodt presides over the case.
The Law Offices of Charles B. Greene -- cbgattyecf@aol.com --
serves as the Debtor's counsel. It scheduled $12,750,000 in
assets and $8,661,625 in debts. The petition was signed by David
Feece, Sr., the Debtor's managing member. Mr. Feece has been
appointed by the Court as responsible individual for the Debtor.
DZF PROPERTIES: Status Conference Set for Jan. 6
------------------------------------------------
The Bankruptcy Court scheduled a Status Conference in DZF
Properties LLC's Chapter 11 case for Jan. 6, 2012, at 2:00 p.m. at
San Jose Courtroom 3020.
DZF Properties, LLC, based in Los Gatos, California, filed for
Chapter 11 bankruptcy (Bankr. N.D. Calif. Case No. 11-60649) on
Nov. 17, 2011. Judge Arthur S. Weissbrodt presides over the case.
The Law Offices of Charles B. Greene -- cbgattyecf@aol.com --
serves as the Debtor's counsel. It scheduled $12,750,000 in
assets and $8,661,625 in debts. The petition was signed by David
Feece, Sr., the Debtor's managing member. Mr. Feece has been
appointed by the Court as responsible individual for the Debtor.
ENTRANCE AT LAKEWAY: Case Summary & 20 Largest Unsecured Creditors
------------------------------------------------------------------
Debtor: The Entrance at Lakeway, L.P.
1008 Ranch Road 620 South
Suite 202
Austin, TX 78734
Bankruptcy Case No.: 11-12954
Chapter 11 Petition Date: December 5, 2011
Court: United States Bankruptcy Court
Western District of Texas (Austin)
Judge: H. Christopher Mott
Debtor's Counsel: Charles Randall Carr, Esq.
1301 West 25th Street, Suite 560
Austin, TX 78705
Tel: (512) 610-9610
Fax: (512) 610-1131
E-mail: randy@carrlawyer.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/txwb11-12954.pdf
The petition was signed by Randall L. Byrd, president of general
partner.
Affiliate that filed separate Chapter 11 petition:
Petition
Debtor Case No. Date
------ -------- ----
Randall Lee Byrd 11-10781 04/01/11
ENVIRO VORAXIAL: Posts $556,100 Net Loss in Third Quarter
---------------------------------------------------------
Enviro Voraxial Technology, Inc., filed its quarterly report on
Form 10-Q, reporting a net loss of $556,130 on $245,450 of
revenues for the three months ended Sept. 30, 2011, compared with
a net loss of $700,151 on $69,000 of revenues for the same period
of 2010.
For the nine months ended Sept. 30, 2011, the Company has reported
a net loss of $512,663 on $1.69 million of revenues, compared with
a net loss $1.53 million on $185,401 of revenues for the same
period last year.
The Company's balance sheet at Sept. 30, 2011, showed
$1.43 million in total assets, $1.39 million in total liabilities,
and stockholders' equity of $43,769.
As reported in the TCR on April 27, 2011, RBSM LLP, in New York
City, expressed substantial doubt about Enviro Voraxial
Technology's ability to continue as a going concern, following the
Company's results for the fiscal year ended Dec. 31, 2010. The
independent auditors noted that the Company has suffered recurring
losses from operations.
A complete text of the Form 10-Q is available for free at:
http://is.gd/v3lFM8
Fort Lauderdale, Fla.-based Enviro Voraxial Technology, Inc., has
developed and patented the Voraxial(R) Separator, a proprietary
technology that efficiently separates large volumes of
liquid/liquid, liquid/solids or liquid/liquid/solids fluid
mixtures with distinct specific gravities.
EQUITABLE OF IOWA: Moody's Cuts 'Ba1' Preferred Stock Rating
------------------------------------------------------------
Moody's Investors Service has downgraded to A3 from A2 the
insurance financial strength (IFS) ratings of ING USA Annuity and
Life Insurance Company and its rated US life insurance affiliates.
The outlook on these ratings is stable. In the same rating action,
the Ba1 (hyb) preferred stock rating of Equitable of Iowa Capital
Trust II was affirmed with a positive outlook. The rating action
follows the pre-announcement by ING NV of an expected 4Q2011
earnings charge of Euro 900 million to Euro 1.1 billion for
changes in policyholder behavior assumptions related to the closed
block of variable annuity (VA) policies in its US operation.
RATING RATIONALE
Commenting on the downgrade, Moody's said that the reserve charge
is sizable relative to ING US's earnings and capital and weakens
the US operation's stand-alone credit quality. Moody's notes that
some support for the US operations to offset the reserve charge
may come from the wider ING Group.
The charge largely relates to assumption revisions for
policyholder lapsation (as well as for mortality, annuitization,
and utilization rates), and reflects the considerable risks and
volatility that are still associated with the company's VA
liabilities. "Although ING US has largely exited the business,
charges related to legacy VA policies continue to depress the
group's overall profitability and weaken capital adequacy, thereby
delaying its recovery" said Laura Bazer, Vice President and Senior
Credit Officer. "Moreover, greater policyholder efficiency in
capturing the value of their guaranteed benefits may be the source
of future charges," the analyst added.
Separately, the U.S. group faces the challenge and uncertainties
of separating from its parent company, particularly in terms of
establishing reliable and cost-effective stand-alone financing
arrangements, as it moves toward its planned IPO in 2012, Moody's
said.
The rating agency noted that the current A3 IFS ratings on ING US
are positioned at their stand-alone credit profile and do not
incorporate any uplift from being part of the ING Group given the
group's plan to IPO the US operations in 2012.
As a result of the large reserve increase, ING US' consolidated
NAIC Risk Based Capital (RBC) is expected to decline from its
estimated 490% at 3Q2011, but still remain over 425% at year-end
2011, which is considered good. However, the rating agency added
that the RBC ratio benefits from a reinsurance transaction with a
captive that is not as well capitalized. In addition, the
company's capital position is volatile under stress scenarios,
which could challenge capital adequacy once support from ING Group
is removed post IPO. ING US' exit from and de-emphasis of higher
risk, lower margin businesses should help improve the risk profile
of ING US' liabilities over time. The group continues to have a
strong position in the US pension and life insurance markets in
the US.
Commenting on the Ba1(hyb) preferred stock rating of Equitable of
Iowa Capital Trust II, the rating agency said that this trust
preferred debt rating is one notch below what is typically seen in
Moody's standard notching for insurance groups. This wider
notching continues to reflect the risk of a coupon deferral
associated with the execution risk posed by the ultimate parent,
ING Groep N.V.'s restructuring process. Nonetheless, the
affirmation of the rating with a positive outlook also reflects
the possibility that this rating may be upgraded, if and when the
risk associated with ING Group's restructuring process ends or
diminishes significantly.
Moody's said the following factors could lead to a further
downgrade of the ratings of ING US: 1) the erosion of ING US'
business franchise, distribution, and employee base, given the
potentially long lead time until the launch of the ING US IPO; 2)
returns on capital consistently below 4%; 3) NAIC RBC ratio
falling below 325% (including captive reinsurers); 4) adjusted
financial leverage greater than 35%; and 5) earnings coverage
below 4x.
These factors could lead to an upgrade: 1) reduction in earnings
volatility, resulting in returns on capital consistently at 6% or
better; 2) RBC ratio consistently at 375% or better, while
maintaining good capitalization at captive reinsurers; 3) adjusted
financial leverage less than 30%; and 4) earnings coverage greater
than 5x.
Moody's will comment separately on any rating implications of the
downgrade of ING US on ING Verzekeringen NV and ING Groep NV, and
on ratings guaranteed by them.
The following ratings were downgraded and now have a stable
outlook:
ING Life Insurance & Annuity Company: insurance financial strength
rating to A3 from A2;
ING USA Annuity and Life Insurance Company: insurance financial
strength to A3 from A2; short-term insurance financial strength to
P-2 from P-1;
Security Life of Denver Insurance Company: insurance financial
strength to A3 from A2; short-term insurance financial strength to
P-2 from P-1;
Reliastar Life Insurance Company: insurance financial strength to
A3 from A2;
Reliastar Life Insurance Company of New York: insurance financial
strength to A3 from A2;
ING Security Life Institutional Funding: funding agreement-backed
senior secured debt to A3 from A2; funding agreement-backed senior
secured program rating to (P)A3 from (P)A2;
ING USA Global Funding Trust 3: funding agreement-backed senior
secured debt to A3 from A2;
Lion Connecticut Holdings, Inc.: long-term issuer rating to Baa3
from Baa2.
These ratings were affirmed with a positive outlook:
Equitable of Iowa Capital Trust II: preferred stock at Ba1(hyb).
ING US companies are wholly indirectly owned subsidiaries of the
ING Verzekeringen N.V., and members of the ING Groep, N.V. Based
in Amsterdam, ING Verzekeringen N.V. had total shareholders'
equity of EUR19.6 billion as of 30 June 2011. ING Verzekeringen
reported Gross Premiums Written of EUR14.5 billion in the first
half of 2011, and a net income of EUR781 million.
The principal methodology used in this rating was Moody's Global
Rating Methodology for Life Insurers published in May 2010.
EVERGREEN ENERGY: Issues Arise Over Southern Coal Joint Venture
---------------------------------------------------------------
Evergreen Energy Inc. provided an update on its joint venture with
WPG Resources, Southern Coal Holdings (SCH), owned equally by
Evergreen and WPG. During the past two weeks, WPG has been
conducting additional due diligence regarding the K-Fuel
technology and the SCH structure and has identified certain
issues. Evergreen disagrees with WPG's characterization of these
issues as they pertain to Evergreen's rights to the technology and
ownership of SCH. Evergreen is working to address these issues
with WPG in order to advance the development of SCH.
Judy Tanselle, Evergreen's president, stated, "WPG continues to
express its interest in pursuing the SCH joint venture with
Evergreen while assessing the impact of recent Evergreen
developments. Our team has been working closely with the WPG
delegation in Denver to cooperatively resolve the identified
issues. We will provide updates on our progress as appropriate."
About Evergreen Energy
Evergreen Energy Inc. has developed two, proprietary, patented,
and green technologies: the GreenCert(TM) suite of software and
services and K-Fuel(R). GreenCert, which is owned exclusively by
Evergreen, is a science-based, scalable family of environmental
intelligence solutions that quantify process efficiency and
greenhouse gas emissions from energy, industrial and agricultural
sources and may be used to create verifiable emission reduction
credits. K-Fuel technology significantly improves the performance
of low-rank coals, yielding higher efficiency and lowering
emissions.
The Company reported a net loss of $21.02 million on $403,000 of
total operating revenue for the year ended Dec. 31, 2010, compared
with a net loss of $58.53 million on $423,000 of total operating
revenue during the prior year.
The Company also reported a net loss of $6.83 million on $325,000
of total operating revenue for the nine months ended Sept. 30,
2011, compared with a net loss of $18 million on $303,000 of total
operating revenue for the same period a year ago.
The Company's balance sheet at Sept. 30, 2011, showed
$20.25 million in total assets, $18.86 million in total
liabilities, and $1.38 million in total stockholders' equity.
Hein & Associates LLP, in Denver, Colo., expressed substantial
doubt about Evergreen Energy's ability to continue as a going
concern. The independent auditors noted that the Company has
suffered recurring losses from operations and has had recurring
cash used in operations.
EXPRESS INC: S&P Puts 'BB-' Corp. Credit Rating on Watch Positive
-----------------------------------------------------------------
Standard & Poor's Ratings Services placed its corporate credit
rating of 'BB-' on the Columbus, Ohio-based Express Inc. on
CreditWatch with positive implications. "In addition, we placed
our 'BB+' issue-level rating on Express' secured term loan and
'B+' issue-level rating on the $250 million senior notes on
CreditWatch with positive implications," S&P said.
"The CreditWatch placement follows Express' announcement that its
Board of Directors has authorized the company to repay the
outstanding balance of its $125 million secured term loan using
cash on hand," said Standard & Poor's credit analyst Helena Song.
"It reflects our expectation that upon completion of the term loan
repayment, Express' credit metrics will further improve due to its
enhanced capital structure and exceed our expectations for the
current ratings," she added.
It also reflects S&P's belief that the company's operating
performance trend will remain positive.
FILENE'S BASEMENT: Shareholders Want Bid to Disband Panel Nixed
---------------------------------------------------------------
Martin Bricketto at Bankruptcy Law360 reports that Syms Corp.
shareholders on Wednesday asked a Delaware bankruptcy court to
reject an attempt by unsecured creditors of Syms and Filene's
Basement LLC to disband a committee representing the shareholders'
interests, claiming they failed to show that the equity
committee's appointment was improper.
The U.S. Trustee formed the equity committee based on Syms'
declaration at the outset of the Chapter 11 case that the company
is solvent, with money to be left over for distribution to
shareholders. The unsecured creditors' committee, however, argued
there's no need for an equity committee because Chief Executive
Marcy Syms, who owns more than 54% of the stock, by herself
adequately represents interests of shareholders. Short of
disbanding the equity committee, the creditors' panel wants the
bankruptcy judge at a Dec. 14 hearing to cap the equity panel's
fees and expenses at $500,000.
About Filene's Basement
Massachusetts-based Filene's Basement, also called The Basement,
is the oldest off-price retailer in the United States. The
Basement focuses on high-end goods and is known for its
distinctive, low-technology automatic markdown system.
Filene's Basement first filed for Chapter 11 bankruptcy protection
in August 1999. Filene's Basement was bought by a predecessor of
Retail Ventures, Inc., the following year. Retail Ventures in
April 2009 transferred the unit to Buxbaum.
Filene's Basement, Inc. and its affiliates filed for Chapter 22
(Bankr. D. Del. Case No. 09-11525) on May 4, 2009, represented by
lawyers at Pachulski Stang Ziehl & Jones LLP. Epiq Bankruptcy
Solutions serves as claims and notice agent. The Debtors
estimated $50 million to $100 million in assets and $100 million
to $500 million in debts.
The 2009 Debtor was formally renamed FB Liquidating Estate,
following the sale of all of its assets to Syms Corp. in June
2009.
Pursuant to the Liquidating Plan confirmed in January 2010,
secured creditors in the Chapter 11 case have been paid in full,
and holders of priority, administrative and convenience class
claims have received 100% of their allowed claims. As reported by
the Troubled Company Reporter on Dec. 20, 2010, Alan Cohen,
Chairman of Abacus Advisors LLC and Chief Restructuring Officer
for FB Liquidating Estate disclosed that a second distribution of
dividend checks to Filene's unsecured creditors amounting to 12.5%
of approved claims has been made, bringing the cumulative
distributions on unsecured claims to 62.5%.
On Nov. 2, 2011, Syms Corp. placed itself, Filene's Basement and
two other units in Chapter 11 bankruptcy (Bankr. D. Del. Case Nos.
11-13511 to 11-13514) after a failed bid to sell the business.
The two units are Syms Clothing Inc. and Syms Advertising Inc.
Judge Kevin J. Carey presides over the case. Lawyers at Skadden
Arps Slate Meagher & Flom LLP serve as the Debtors' counsel. The
Debtors tapped Rothschild Inc. as investment banker and Cushman
and Wakefield Securities, Inc., as real estate financial advisors.
Syms shuttered its namesake and Filene's Basement outlets upon the
bankruptcy filing and tapped a joint venture of Gordon Brothers
Retail Partners LLC and Hilco Merchant Resources LLC to run the
going-out-of-business sales. The sale may continue until Jan. 31,
2012.
Filene's Basement estimated $1 million to $10 million in assets
and $50 million to $100 million in debts. The petitions were
signed by Gary Binkoski, authorized representative of Filene's
Basement.
The official committee of unsecured creditors appointed in the
2011 case has retained Hahn & Hessen LLP as legal counsel.
Holders of equity in Syms Corp. pushed for an official
shareholders' committee and separation of the Syms and Filene's
Basement bankruptcy estates.
Gordon Brothers and Hilco are represented by Goulston & Storrs,
P.C. and Ashby & Geddes, P.A.
FILENE'S BASEMENT: Hires WeiserMazars LLP as Tax Provider
---------------------------------------------------------
Filene's Basement, also called The Basement, asks the U.S.
Bankruptcy Court for the District of Delaware to employ
WeiserMazars LLP as tax provider.
Upon retention, the firm will, among other things:
a. prepare and review the Debtors' annual federal and
state tax provisions plus related supporting workpapers for
the year ended Feb. 26, 2011 and quarterly tax provisions
for the year ending Feb. 25, 2012;
b. review the Debtors' federal and state tax returns for the
year ended Feb. 26, 2011; and
c. represent the Debtors before the Internal Revenue Service
during the IRS examination of tax years ended Feb. 28, 2009
and Feb. 27, 2010, with respect to the Debtors' Form 1120 as
filed;
The firm's hourly rates are:
Personnel Rates
--------- -----
Partner $400 - $600
Senior Manager $300 - $375
Manager $220 - $340
Filene's Basement attests that it is a "disinterested person" as
the term is defined in Section 101(14) of the Bankruptcy Code.
About Filene's Basement
Massachusetts-based Filene's Basement, also called The Basement,
is the oldest off-price retailer in the United States. The
Basement focuses on high-end goods and is known for its
distinctive, low-technology automatic markdown system.
Filene's Basement first filed for Chapter 11 bankruptcy protection
in August 1999. Filene's Basement was bought by a predecessor of
Retail Ventures, Inc., the following year. Retail Ventures in
April 2009 transferred the unit to Buxbaum.
Filene's Basement, Inc. and its affiliates filed for Chapter 22
(Bankr. D. Del. Case No. 09-11525) on May 4, 2009, represented by
lawyers at Pachulski Stang Ziehl & Jones LLP. Epiq Bankruptcy
Solutions serves as claims and notice agent. The Debtors
estimated $50 million to $100 million in assets and $100 million
to $500 million in debts.
The 2009 Debtor was formally renamed FB Liquidating Estate,
following the sale of all of its assets to Syms Corp. in June
2009.
Pursuant to the Liquidating Plan confirmed in January 2010,
secured creditors in the Chapter 11 case have been paid in full,
and holders of priority, administrative and convenience class
claims have received 100% of their allowed claims. As reported by
the Troubled Company Reporter on Dec. 20, 2010, Alan Cohen,
Chairman of Abacus Advisors LLC and Chief Restructuring Officer
for FB Liquidating Estate disclosed that a second distribution of
dividend checks to Filene's unsecured creditors amounting to 12.5%
of approved claims has been made, bringing the cumulative
distributions on unsecured claims to 62.5%.
On Nov. 2, 2011, Syms Corp. placed itself, Filene's Basement and
two other units in Chapter 11 bankruptcy (Bankr. D. Del. Case Nos.
11-13511 to 11-13514) after a failed bid to sell the business.
The two units are Syms Clothing Inc. and Syms Advertising Inc.
Judge Kevin J. Carey presides over the case. Lawyers at Skadden
Arps Slate Meagher & Flom LLP serve as the Debtors' counsel. The
Debtors tapped Rothschild Inc. as investment banker and Cushman
and Wakefield Securities, Inc., as real estate financial advisors.
Syms shuttered its namesake and Filene's Basement outlets upon the
bankruptcy filing and tapped a joint venture of Gordon Brothers
Retail Partners LLC and Hilco Merchant Resources LLC to run the
going-out-of-business sales. The sale may continue until Jan. 31,
2012.
Filene's Basement estimated $1 million to $10 million in assets
and $50 million to $100 million in debts. The petitions were
signed by Gary Binkoski, authorized representative of Filene's
Basement.
The official committee of unsecured creditors appointed in the
2011 case has retained Hahn & Hessen LLP as legal counsel.
Holders of equity in Syms Corp. pushed for an official
shareholders' committee and separation of the Syms and Filene's
Basement bankruptcy estates.
Gordon Brothers and Hilco are represented by Goulston & Storrs,
P.C. and Ashby & Geddes, P.A.
FILENE'S BASEMENT: Hires Conaway Stargatt as Conflicts Counsel
--------------------------------------------------------------
Filene's Basement, also called The Basement, asks the U.S.
Bankruptcy Court for the District of Delaware to employ Young
Conaway Stargatt & Taylor, LLP as conflicts counsel.
Upon retention, the firm will, among other things:
a. advise the Debtors, where SASM&F is or may be conflicted,
regarding their powers and duties as debtors in possession
in the continued management of their businesses and
properties;
b. attend meetings and negotiate with representatives of
creditors, equity security holders and other parties in
interest; and
c. take necessary action to protect and preserve the Debtors'
estates including prosecuting actions on the Debtors'
behalf, defending any action commenced against the Debtors
and representing the Debtors' interest in negotiations
concerning litigation, including, but nor limited to,
objections to claims filed against the estates.
David R. Hurt, an attorney for Young Conaway Stargatt & Taylor,
attests that the firm is a "disinterested person" as the term is
defined in Section 101(14) of the Bankruptcy Code.
The firm's rates are:
Personnel Rates
--------- -----
David R. Hurst $545
Maris J. Kandestin $375
Ashley E. Markow $265
Troy Bollman $140
About Filene's Basement
Massachusetts-based Filene's Basement, also called The Basement,
is the oldest off-price retailer in the United States. The
Basement focuses on high-end goods and is known for its
distinctive, low-technology automatic markdown system.
Filene's Basement first filed for Chapter 11 bankruptcy protection
in August 1999. Filene's Basement was bought by a predecessor of
Retail Ventures, Inc., the following year. Retail Ventures in
April 2009 transferred the unit to Buxbaum.
Filene's Basement, Inc. and its affiliates filed for Chapter 22
(Bankr. D. Del. Case No. 09-11525) on May 4, 2009, represented by
lawyers at Pachulski Stang Ziehl & Jones LLP. Epiq Bankruptcy
Solutions serves as claims and notice agent. The Debtors
estimated $50 million to $100 million in assets and $100 million
to $500 million in debts.
The 2009 Debtor was formally renamed FB Liquidating Estate,
following the sale of all of its assets to Syms Corp. in June
2009.
Pursuant to the Liquidating Plan confirmed in January 2010,
secured creditors in the Chapter 11 case have been paid in full,
and holders of priority, administrative and convenience class
claims have received 100% of their allowed claims. As reported by
the Troubled Company Reporter on Dec. 20, 2010, Alan Cohen,
Chairman of Abacus Advisors LLC and Chief Restructuring Officer
for FB Liquidating Estate disclosed that a second distribution of
dividend checks to Filene's unsecured creditors amounting to 12.5%
of approved claims has been made, bringing the cumulative
distributions on unsecured claims to 62.5%.
On Nov. 2, 2011, Syms Corp. placed itself, Filene's Basement and
two other units in Chapter 11 bankruptcy (Bankr. D. Del. Case Nos.
11-13511 to 11-13514) after a failed bid to sell the business.
The two units are Syms Clothing Inc. and Syms Advertising Inc.
Judge Kevin J. Carey presides over the case. Lawyers at Skadden
Arps Slate Meagher & Flom LLP serve as the Debtors' counsel. The
Debtors tapped Rothschild Inc. as investment banker and Cushman
and Wakefield Securities, Inc., as real estate financial advisors.
Syms shuttered its namesake and Filene's Basement outlets upon the
bankruptcy filing and tapped a joint venture of Gordon Brothers
Retail Partners LLC and Hilco Merchant Resources LLC to run the
going-out-of-business sales. The sale may continue until Jan. 31,
2012.
Filene's Basement estimated $1 million to $10 million in assets
and $50 million to $100 million in debts. The petitions were
signed by Gary Binkoski, authorized representative of Filene's
Basement.
The official committee of unsecured creditors appointed in the
2011 case has retained Hahn & Hessen LLP as legal counsel.
Holders of equity in Syms Corp. pushed for an official
shareholders' committee and separation of the Syms and Filene's
Basement bankruptcy estates.
Gordon Brothers and Hilco are represented by Goulston & Storrs,
P.C. and Ashby & Geddes, P.A.
FILENE'S BASEMENT: Syms Group Fights Bid for Disbandment
--------------------------------------------------------
Dow Jones' DBR Small Cap reports that a committee of shareholders
and the federal bankruptcy watchdog that appointed it are
defending the group's existence from unsecured creditors of Syms
Corp., who insist the committee has no place in the case.
Massachusetts-based Filene's Basement, also called The Basement,
is the oldest off-price retailer in the United States. The
Basement focuses on high-end goods and is known for its
distinctive, low-technology automatic markdown system.
Filene's Basement first filed for Chapter 11 bankruptcy protection
in August 1999. Filene's Basement was bought by a predecessor of
Retail Ventures, Inc., the following year. Retail Ventures in
April 2009 transferred the unit to Buxbaum.
Filene's Basement, Inc. and its affiliates filed for Chapter 22
(Bankr. D. Del. Case No. 09-11525) on May 4, 2009, represented by
lawyers at Pachulski Stang Ziehl & Jones LLP. Epiq Bankruptcy
Solutions serves as claims and notice agent. The Debtors
estimated $50 million to $100 million in assets and $100 million
to $500 million in debts.
The 2009 Debtor was formally renamed FB Liquidating Estate,
following the sale of all of its assets to Syms Corp. in June
2009.
Pursuant to the Liquidating Plan confirmed in January 2010,
secured creditors in the Chapter 11 case have been paid in full,
and holders of priority, administrative and convenience class
claims have received 100% of their allowed claims. As reported by
the Troubled Company Reporter on Dec. 20, 2010, Alan Cohen,
Chairman of Abacus Advisors LLC and Chief Restructuring Officer
for FB Liquidating Estate disclosed that a second distribution of
dividend checks to Filene's unsecured creditors amounting to 12.5%
of approved claims has been made, bringing the cumulative
distributions on unsecured claims to 62.5%.
On Nov. 2, 2011, Syms Corp. placed itself, Filene's Basement and
two other units in Chapter 11 bankruptcy (Bankr. D. Del. Case Nos.
11-13511 to 11-13514) after a failed bid to sell the business.
The two units are Syms Clothing Inc. and Syms Advertising Inc.
Judge Kevin J. Carey presides over the case. Lawyers at Skadden
Arps Slate Meagher & Flom LLP serve as the Debtors' counsel. The
Debtors tapped Rothschild Inc. as investment banker and Cushman
and Wakefield Securities, Inc., as real estate financial advisors.
Syms shuttered its namesake and Filene's Basement outlets upon the
bankruptcy filing and tapped a joint venture of Gordon Brothers
Retail Partners LLC and Hilco Merchant Resources LLC to run the
going-out-of-business sales. The sale may continue until Jan. 31,
2012.
Filene's Basement estimated $1 million to $10 million in assets
and $50 million to $100 million in debts. The petitions were
signed by Gary Binkoski, authorized representative of Filene's
Basement.
The official committee of unsecured creditors appointed in the
2011 case has retained Hahn & Hessen LLP as legal counsel.
Holders of equity in Syms Corp. pushed for an official
shareholders' committee and separation of the Syms and Filene's
Basement bankruptcy estates.
Gordon Brothers and Hilco are represented by Goulston & Storrs,
P.C. and Ashby & Geddes, P.A.
FIRST FOLIAGE: Wants Reorganization Case Converted to Chapter 7
----------------------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of Florida
will convene a hearing on Dec. 20, 2011, at 3:00 p.m., to consider
First Foliage, L.C.'s the motion to convert its case to one under
Chapter 7 of the Bankruptcy Code.
The Debtor related that upon the consummation of the sale of
substantially all of its assets, all employees were terminated and
the Debtor is in the final stages of winding down its business
affairs as a debtor-in-possession.
The Debtor continued that it has considered the filing of a
liquidating Chapter 11 plan, and believes that the administrative
costs associated with the confirmation of a plan outweigh any
potential benefit associated with therewith. Moreover, a Chapter
7 trustee will have the ability to continue pending litigation,
pursue any future litigation, and to continue to make
distributions to creditors, as appropriate.
The Debtor has consulted the with the counsel of the Official
Committee of Unsecured Creditors and the U.S. Trustee prior to the
filing of the motion.
As reported in the Troubled Company Reporter on Sept. 7, 2011,
Donald F. Walton, U.S. Trustee for Region 21, notified the Court
that he has withdrawn his motion to dismiss or convert the Chapter
11 case of the Debtor to one under Chapter 7.
As reported in the TCR on July 13, 2011, the U.S. Trustee said
that the Debtor has not paid the required statutory fee owed to
the U.S. Trustee in the amount of approximately $20,000 for the
first quarter of 2011.
About First Foliage, L.C.
Homestead, Florida-based First Foliage, L.C., once operated a
business that supplied tropical plants to retailers. The Company
filed for Chapter 11 bankruptcy protection (Bankr. S.D. Fla. Case
No. 10-27532) on June 23, 2010. Luis Salazar, Esq., at Infante,
Zumpano, Hudson & Miloch, LLC, represents the Debtor. Berger
Singerman, P.A., serves as counsel to the Official Committee of
Unsecured Creditors. The Company estimated $50 million to $100
million in assets and $10 million to $50 million in liabilities in
its Chapter 11 petition. First Foliage LC has sold its assets to
Costa Farms LLC for roughly $22 million.
FRIENDLY ICE CREAM: Creditors Fight Sun Capital Claim
-----------------------------------------------------
Dow Jones' DBR Small Cap reports that unsecured creditors of
Friendly Ice Cream Corp. are escalating their campaign to have a
$268 million claim held by Sun Capital Partners Inc. reclassified
as equity, a move that would limit the buyout firm's ability to
bid debt in exchange for the restaurant chain's assets at an
upcoming auction.
About Friendly Ice Cream
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.
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 one of two companies 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.
On Oct. 12, 2011, the U.S. Trustee appointed the Committee. The
Committee currently consists of seven members. The Committee
selected Akin Gump Straus Hauer & Feld LLP and Blank Rome LLP to
serve as co-counsel to the Committee, and FTI Consulting to serve
as the Committee's financial advisor.
FRIO CANYON: Voluntary Chapter 11 Case Summary
----------------------------------------------
Debtor: Frio Canyon Lodge & Restaurant LLC
Box 5
Leakey, TX 78873
Bankruptcy Case No.: 11-54210
Chapter 11 Petition Date: December 5, 2011
Court: United States Bankruptcy Court
Western District of Texas (San Antonio)
Judge: Leif M. Clark
Debtor's Counsel: Morris E. "Trey" White, III, Esq.
VILLA & WHITE LLP
1100 NW Loop 410, Suite 700
San Antonio, TX 78213
Tel: (210) 225-4500
Fax: (210) 212-4649
E-mail: treywhite@villawhite.com
Scheduled Assets: $1,264,780
Scheduled Debts: $1,213,193
The Debtor did not file a list of its largest unsecured creditors
together with its petition.
The petition was signed by Dalene White, president.
FUEL DOCTOR: Posts $760,800 Net Loss in Third Quarter
-----------------------------------------------------
Fuel Doctor Holdings, Inc., formerly Silverhill Management
Services, Inc., filed its quarterly report on Form 10-Q, reporting
a net loss of $760,883 on $193,271 of revenues for the three
months ended Sept. 30, 2011, compared with a net loss of $500,317
on $243,465 of revenues for the same period of 2010.
For the nine months ended Sept. 30, 2011, the Company has reported
a net loss of $1.9 million on $811,576 of revenues, compared with
a net loss of $1.7 million on $603,329 of revenues for the
corresponding period last year.
The Company had an accumulated deficit at Sept. 30, 2011, had a
net loss and net cash used in operating activities for the interim
period then ended. "While the Company is attempting to generate
sufficient revenues, the Company's cash position may not be
sufficient to support the Company's daily operations," the Company
said in the filing.
A complete text of the Form 10-Q is available for free at:
http://is.gd/sna79G
Calabasas, Calif.-based Fuel Doctor Holdings, Inc., is the
exclusive distributor for the United States and Canada of a fuel
efficiency booster (the FD-47), which plugs into the lighter
socket/power port of a vehicle and increases the vehicle's miles
per gallon through the power conditioning of the vehicle's
electrical systems. The Company has also developed, and plans on
continuing to develop, certain related products.
FURNITURE BY THURSTON: Final Cash Collateral Hearing Today
----------------------------------------------------------
KLN Steel Products Company LLC, Dehler Manufacturing Co. Inc.,
and Furniture by Thurston will return to the Bankruptcy Court in
Austin, Texas, today, Dec. 12, at 9:00 a.m., to seek final
approval of their request for continued use of cash collateral.
To the Debtors' knowledge, no creditors other than Banco Popular
North America claim liens on the Debtors' cash collateral. The
Debtors won interim authority to use cash collateral on Nov. 23.
The Debtors said they are unable to pay the reasonable expenses of
their ongoing operations without permission for use of collateral
and cash collateral in which security interests and liens are
claimed by the Lender.
On Nov. 15, 2006, the Debtors entered into Credit and Term Loan
Agreement with Banco Popular. On Nov. 18, 2011, the Lender
refused to fund KLN's payroll effectively shutting down all of
KLN's operations and ability to finish jobs or to otherwise
fulfill customer orders. The Lender asserts claims against the
Debtors for $30 million. The Lender asserts that its debt is
secured by substantially all of the Debtors property. The Debtors
estimate that the Lender claims a security interest in property
the value of which -- according to the Lender?s own appraisals --
exceeds its debt by $11,997,284.
About KLN Steel, Dehler and Furniture by Thurston
San Antonio, Texas-based KLN Steel Products Company LLC, Dehler
Manufacturing Co. Inc., and Furniture by Thurston manufacture and
market high quality furniture for multi-person housing facilities
and packaged services for federal government offices and dormitory
facilities. They have two manufacturing facilities. One in San
Antonio, Texas, which is consolidated and designed to accommodate
high volume fabrication of standard and semi-custom steel
furniture and casegoods of high quality for colleges and
universities, military quarters, and job corps centers, or
wherever high quality, long life, low maintenance furniture is
essential. The facility includes a manufacturing facility of more
than 170,000 square feet capable of producing substantial projects
on a timely basis. The second facility is located in Grass
Valley, California, with more than 61,000 square feet dedicated to
the manufacturing of wood furniture for military and university
housing.
KLN Steel filed for Chapter 11 bankruptcy (Bankr. W.D. Tex. Case
No. 11-12855) on Nov. 22, 2011. Dehler (Case No. 11-12856) and
Furniture by Thurston (Case No. 11-12858) filed on the same day.
Judge Craig A. Gargotta were originally assigned to the KLN and
Dehler cases. The Furniture by Thurston case was given to Judge
H. Christopher Mott. Judge Mott now oversees all three cases.
Patricia Baron Tomasco, Esq., at Jackson Walker LLP, serves as the
Debtors' counsel. Each of the Debtors estimated assets and debts
of $10 million to $50 million. The petition was signed by Edward
J. Herman, president.
GALP CYPRESS: Case Summary & 20 Largest Unsecured Creditors
-----------------------------------------------------------
Debtor: GALP Cypress Limited Partnership
aka Palms at Cypress Station
c/o Law Offices of Matthew Hoffman, P.C.
2777 Allen Parkway, Suite 1000
Houston, TX 77019
Tel: (713) 654-9990
Bankruptcy Case No.: 11-40427
Chapter 11 Petition Date: December 6, 2011
Court: U.S. Bankruptcy Court
Southern District of Texas (Houston)
Judge: Letitia Z. Paul
Debtor's Counsel: Matthew Hoffman, Esq.
LAW OFFICES OF MATTHEW HOFFMAN, P.C.
2777 Allen Parkway, Suite 1000
Houston, TX 77019
Tel: (713) 654-9990
Fax: (713) 654-0038
E-mail: mhecf@aol.com
Estimated Assets: $10,000,001 to $50,000,000
Estimated Debts: $1,000,001 to $10,000,000
The petition was signed by Gary Gray, president of Cyoress-1 GP,
Inc., general partner of Cypress GP, L.P., general partner.
Debtor's List of Its 20 Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
------ --------------- ------------
O.R.P. Construction, Inc. Trade Debt $298,780
30603 Aldine Westfield
Spring, TX 77386
American Management Services LLC Trade Debt $24,149
2801 Alaskan Way, Suite 200
Seattle, WA 98121
Findit Apartment Locators Trade Debt $18,319
P.O. Box 742324
Houston, TX 77074
Wilmar Industries Inc. Trade Debt $17,203
Criterion Brock Trade Debt $13,791
Al's Landscaping Trade Debt $10,690
A.S.A.P. Apartment Specialist Trade Debt $6,392
Appliance Warehouse of America, Trade Debt $3,597
Inc.
Sherwin Williams Trade Debt $3,659
TXU Energy Trade Debt $2,541
Promaxima Manufacturing, Ltd. Trade Debt $2,134
For Rent Media Solutions Trade Debt $1,721
Classified Ventures LLC Trade Debt $1,715
Comcast Cable Trade Debt $1,419
Hudson Energy Trade Debt $1,351
Everyones Realtor Trade Debt $1,058
Meyer Smith, Inc. Trade Debt $1,070
Moveforfree.com Trade Debt $640
City Apartments Trade Debt $639
Houston?s Apartment Hotline Trade Debt $599
GBB5 INC: Case Summary & 7 Largest Unsecured Creditors
------------------------------------------------------
Debtor: GBB5 Inc.
14925 Encendido
San Diego, CA 92127
Bankruptcy Case No.: 11-19711
Chapter 11 Petition Date: December 5, 2011
Court: United States Bankruptcy Court
Southern District of California (San Diego)
Judge: Laura S. Taylor
Debtor's Counsel: Joseph C. La Costa, Esq.
LAW OFFICE OF JOSEPH LA COSTA
7840 Mission Center Court, Suite 104
San Diego, CA 92128
Tel: (951) 286-1787
E-mail: joelacosta@hotmail.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 seven largest unsecured creditors filed
together with the petition is available for free at
http://bankrupt.com/misc/casb11-19711.pdf
The petition was signed by Barry Blythe, president.
Affiliate that filed separate Chapter 11 petition:
Petition
Debtor Case No. Date
------ -------- ----
GBB4 INC. 11-16307 09/30/11
GELT PROPERTIES: Committee Objects to Foreclosure of Real Property
------------------------------------------------------------------
The Official Committee of Unsecured Creditors in the Chapter 11
cases of Gelt Properties, LLC and Gelt Financial Corporation, asks
the U.S. Bankruptcy Court for the Eastern District of Pennsylvania
to deny the Debtors' motion to foreclose upon certain real
property and approve foreclosure and loan payoff procedures.
As reported in the Troubled Company Reporter on Nov. 9, 2011, the
Debtors relate that currently, their properties are generally
encumbered by liens of various traditional lenders.
The Debtors sought to foreclose upon certain of the remaining
properties, as circumstance give rise to such an exercise of the
Debtor's rights procedurally, free and clear of all liens, claims,
encumbrances, and interests, including but not limited to (i) all
mortgages, judgments, liens and lis pendens of records; and (ii)
all claims of ownership or other equitable rights of any party of
any kind and all liens will attach to the proceeds of said sale.
The Debtors desired to implement a procedure whereby properties
can be foreclosed upon, maintained and ultimately sold or leased
to third party buyers or tenants without the need for individual
court approval of each foreclosure or sale.
With regards to the mortgage payoff letters, the Debtors proposed
to provide the affected lender with a copy of the payoff letter
sent to borrower along with a notice of proposed distribution to
the affected lender as a result of the payoff together with an
explanation of the calculation of the proposed distribution.
In its objection, FCB asserts that the foreclosure procedures as
outlined in the motion do not make sense and need to be further
clarified.
Concerning the "payoff procedures" provisions of the motion, FCB
will not approve the proposed procedure unless FCB provides prior
written approval to the Debtor of any proposed sale and FCB is
guaranteed payment in full from the sale of each property.
The Committee states that while it does not object to the Debtors
conducting its business in the ordinary course, there are multiple
problems with what the Debtor is proposing. According to the
Committee, among other things:
1. there has been no showing or determination of the secured
status of the various institutional lenders who purport to have
mortgages or liens encumbering the parcels of real estate which
the Debtors have taken liens and mortgages against as collateral
for the loans which the Debtor has made to various third party
borrowers;
2. the Banks has to file proof of their entitlement to secured
claims against the Debtor and what priority, if any, such Banks
claim to have with respect to competing liens against the same
collateral;
3. the motion failed to differentiate between the various
rights, claims and standings of the Bank who purportedly hold
secured claims against the Debtor;
4. the motion failed to provide any information with regard to
how the properties are to be sold and at what price and what sale
terms nor does it direct a methodology to determine the fair
market value of the properties to be sold so that a reasonable
determination can be made as to whether a party-in-interest must
object to a particular sale.
Paul J. Schoff, Esq., at Schoff McCabe, P.C., represents the
Committee.
About Gelt Properties
Based in Huntington Valley, Pennsylvania, Gelt Properties, LLC,
and affiliate Gelt Financial Corporation borrow money from
traditional lenders and make loans to commercial borrowers. They
also acquire and manage real estate. Gelt Properties and Gelt
Financial filed for (Bankr. E.D. Pa. Case Nos. 11-15826 and 11-
15826) on July 25, 2011. Judge Magdeline D. Coleman presides over
the cases. Albert A. Ciardi, III, Esq., Jennifer E. Cranston,
Esq., and Thomas Daniel Bielli, Esq., at Ciardi Ciardi & Astin,
P.C., in Philadelphia, Pa., serve as the Debtors' bankruptcy
counsel. The petitions were signed by Uri Shoham, the Debtors'
chief financial officer. The Debtors' other professionals
include: Eisenberg, Gold & Cettei P.C. as its special counsel to
provide proper legal counsel to the Debtors with regard to
defending against certain actions, Cohen and Forman as their
special counsel to advise them upon all matters which may arise or
which may be incident to the bankruptcy proceedings.
Gelt Properties disclosed $4,727,090 in assets and $4,842,792 in
liabilities as of the Chapter 11 filing. Its affiliate, Gelt
Financial, has filed its schedules disclosing $20,340,725 in
assets and $17,050,558 in liabilities as of the Chapter 11 filing.
On Sept. 15, 2011, a committee of unsecured creditors was
appointed. Schoff McCabe, P.C. represents the Committee.
GELT PROPERTIES: Lender Wants Adequate Security on Sale, Cash Use
-----------------------------------------------------------------
Univest Bank and Trust Company asks the U.S. Bankruptcy Court for
the Eastern District of Pennsylvania to deny Gelt Properties, LLC
and Gelt Financial Corporation's motion to use cash collateral.
As of the Petition Date, the outstanding balance under the loan
was approximately $4,545,344, secured by collateral assignment of
mortgages and rents and leases.
Univest explains that its interest in the cash collateral is not
adequately protected.
Univest also objects to the Debtors' motion dated Oct. 20, for
authority to sell certain real property.
According to Univest, the Debtors' sale motion does not adequately
protect its interest in the sale proceeds. Univest adds that
without a Court-approved process for timely payment to Univest in
accordance with the loan documentation each time a sale occurs,
Univest's security interest in the sale proceeds is not adequately
protected; and the Debtor has failed to obtain Court approval of a
process for foreclosing on defaulted mortgages on the mortgages
properties.
Univest is represented by:
William R. Hinchman, Esq.
Leona Mogavero, Esq.
KLEHR HARRISON HARVEY BRAZBURG LLP
1835 Market Street, Suite 1400
Philadelphia, PA 19103
Tel: (215) 569-2700
E-mail: whinchman@klehr.com
lmogavero@klehr.com
About Gelt Properties
Based in Huntington Valley, Pennsylvania, Gelt Properties, LLC,
and affiliate Gelt Financial Corporation borrow money from
traditional lenders and make loans to commercial borrowers. They
also acquire and manage real estate. Gelt Properties and Gelt
Financial filed for (Bankr. E.D. Pa. Case Nos. 11-15826 and 11-
15826) on July 25, 2011. Judge Magdeline D. Coleman presides over
the cases. Albert A. Ciardi, III, Esq., Jennifer E. Cranston,
Esq., and Thomas Daniel Bielli, Esq., at Ciardi Ciardi & Astin,
P.C., in Philadelphia, Pa., serve as the Debtors' bankruptcy
counsel. The petitions were signed by Uri Shoham, the Debtors'
chief financial officer. The Debtors' other professionals
include: Eisenberg, Gold & Cettei P.C. as its special counsel to
provide proper legal counsel to the Debtors with regard to
defending against certain actions, Cohen and Forman as their
special counsel to advise them upon all matters which may arise or
which may be incident to the bankruptcy proceedings.
Gelt Properties disclosed $4,727,090 in assets and $4,842,792 in
liabilities as of the Chapter 11 filing. Its affiliate, Gelt
Financial, has filed its schedules disclosing $20,340,725 in
assets and $17,050,558 in liabilities as of the Chapter 11 filing.
On Sept. 15, 2011, a committee of unsecured creditors was
appointed. Schoff McCabe, P.C. represents the Committee.
GENMED HOLDINGS: Board Approves Dismissal of Meyler & Company
-------------------------------------------------------------
The Board of Directors of Genmed Holding Corp. approved the
dismissal of Meyler & Company, LLC, as the Company's independent
registered public accounting firm.
During the fiscal years ended Dec. 31, 2010, and 2009, and during
the period from Jan. 1, 2011, through Dec. 1, 2011, the Company
had (i) no disagreements with Meyler & Co. on any matter of
accounting principles or practices, financial statement
disclosure, or auditing scope or procedure, any of which that, if
not resolved to Meyler & Co.'s satisfaction, would have caused it
to make reference to the subject matter of any such disagreement
in connection with its reports for those years and interim periods
and (ii) no reportable events within the meaning of Item
304(a)(1)(v) of Regulation S-K during the two most recent fiscal
years or the subsequent interim period.
As of Dec. 31, 2010, the Company had material weaknesses related
to internal controls over financial reporting based on the
criteria established in Internal Control - Integrated Framework
issued by the Committee of Sponsoring Organizations of the
Treadway Commission. Based on this evaluation under the criteria
established in Internal Control - Integrated Framework, the
Company's management concluded that the Company's internal control
over financial reporting was not effective as of Dec. 31, 2010.
Based on that evaluation, the Company's Chief Executive Officer
and Chief Financial Officer concluded that, as of that date, the
Company's disclosure controls and procedures required by paragraph
(b) of Exchange Act Rules 13a-15 or 15d-15, were not effective at
a reasonable assurance level. Managements' assessment identified
the following material weaknesses:
(1) As of Sept. 30, 2011, there was a lack of accounting
personnel with the requisite knowledge of Generally
Accepted Accounting Principles (GAAP) in the US and the
financial reporting requirements of the Securities and
Exchange Commission;
(2) As of Sept. 30, 2011, there were insufficient written
policies and procedures to insure the correct application
of accounting and financial reporting with respect to
current requirements of GAAP and SEC disclosure
requirements;
(3) As of Sept. 30, 2011, there was a lack of segregation of
duties, in that the Company had only one person performing
all accounting-related duties;
(4) As of Sept. 30, 2011, there were no independent directors
and no independent audit committee.
The reports of Meyler & Co. on the Company's consolidated
Financial Statements as of and for the years ended Dec. 31, 2010,
and 2009, contained an explanatory paragraph which noted that
there was substantial doubt as to the Company's ability to
continue as a going concern as the Company had a net loss and has
incurred cumulative net losses since inception.
Effective Dec. 1, 2011, the Company approved the engagement of
Malone & Bailey LLP as the Company's independent registered
certified public accounting firm.
During the fiscal years ended Dec. 31, 2010, and 2009, and during
the period from Jan. 1, 2011, through December 1, neither the
Company nor anyone on its behalf has consulted with Malone &
Bailey LLP regarding (i) the application of accounting principles
to a specific transaction, either completed or proposed; or the
type of audit opinion that might be rendered on the Company's
financial statements, and neither a written report was provided to
the Company or oral advice was provided that Malone & Bailey LLP
concluded was an important factor considered by the Company in
reaching a decision as to the accounting, auditing or financial
reporting issue; or (ii) any matter that was the subject of a
disagreement as that term is defined in Item 304(a)(1)(iv) of
Regulation S-K and the related instructions to Item 304 of
Regulation S-K, or any reportable event as that term is defined in
Item 304(a)(1)(v) of Regulation S-K.
About GenMed Holding
Based in The Netherlands, Genmed Holding Corp. through its wholly
owned Dutch subsidiary Genmed B.V. is focusing on the delivery of
low cost generic medicines directly to distribution chains
throughout Europe. The Company is currently in the development
stage of its generic drug distribution business and is attempting
to develop and maintain relationships with generic drug
manufacturers, retail entities, and government regulatory
authorities.
The Company also reported a net loss of $2.37 million on $0 of net
sales for the nine months ended Sept. 30, 2011, compared with a
net loss of $1.70 million on $0 of net sales for the same period
during the prior year.
The Company's balance sheet at Sept. 30, 2011, showed
$1.28 million in total assets, $2.94 million in total liabilities,
and a $1.65 million total stockholders' deficit.
As reported in the TCR on April 27, 2011, Meyler & Company, LLC,
in Middletown, N.J., expressed substantial doubt about Genmed
Holding's ability to continue as a going concern, following the
Company's 2010 results. The independent auditors noted that the
Company has incurred cumulative net losses of $69.99 million since
inception, and had net losses of $7.73 million and $8.59 million
for the years ended Dec. 31, 2010, and 2009.
GEO POINT: Posts $390,700 Net Loss in Sept. 30 Quarter
------------------------------------------------------
Geo Point Technologies, Inc., filed its quarterly report on Form
10-Q, reporting a net loss of $390,768 on $58,750 of revenues for
the three months ended Sept. 30, 2011, compared with a net loss of
$127,558 on $128,018 of revenues for the three months ended
Sept. 30, 2010.
For the six months ended Sept. 30, 2011, the Company has reported
a net loss of $771,620 on $139,229 of revenues, compared with a
net loss of $264,990 on $143,945 of revenues for the three months
ended Sept. 30, 2010.
The Company's balance sheet at Sept. 30, 2011, showed $6.0 million
in total assets, $3.0 million in total liabilities, and
stockholders' equity of $3.0 million.
As reported in the TCR on July 19, 2011, Hansen, Barnett &
Maxwell, P.C., in Salt Lake City, expressed substantial doubt
about Geo Point Technologies' ability to continue as a going
concern, following the Company's results for the fiscal year ended
March 31, 2011. The independent auditors noted that the Company
has incurred significant losses and negative cash flows from
operating activities since inception, has negative working capital
and an accumulated deficit, and is dependent on additional debt or
equity financing in order to continue its
operations.
A copy of the Form 10-Q is available for free at:
http://is.gd/8hXitO
Salt Lake City-based Geo Technologies, Inc., owns and operates an
oil refinery in Karatau, Kazakhstan, that refines crude oil into
diesel fuel, gasoline, and mazut, a heating oil.
GETTY PETROLEUM: Court Grants Joint Administration of Cases
-----------------------------------------------------------
The Bankruptcy Court directed the joint administration of the
bankruptcy cases of Getty Petroleum Marketing Inc. and its
affiliates Gasway Inc., Getty Terminals Corp., and PT Petro Corp.
for procedural purposes only. The Lead Case is Case No. 11-15606.
Judge Chapman also granted interim approval to the Debtors' so-
called First Day Motions, including payment of employee salaries
and benefits, taxes, critical vendor claims and insurance.
Getty Petroleum Marketing Inc., based in East Meadow, New York, is
the largest publicly traded real estate investment trust in the
United States specializing in ownership, leasing and financing of
retail motor fuel and convenience store properties and petroleum
distribution terminals. The Company owns and leases 1,170
properties nationwide.
Getty Petroleum and three affiliates filed for Chapter 11
bankruptcy (Bankr. S.D.N.Y. Case Nos. 11-15606 to 11-15609) on
Dec. 5, 2011. Judge Shelley C. Chapman presides over the case.
John H. Bae, Esq. -- baej@gtlaw.com -- at Greenberg Traurig, LLP,
serves as the Debtors' counsel. Getty Petroleum estimated $50
million to $100 million in assets and debts. The petition was
signed by Bjorn Q. Aaserod, chief executive officer and chairman
of the board.
GLASSCOCK STREET: Case Summary & Largest Unsecured Creditor
-----------------------------------------------------------
Debtor: Glasscock Street Associates, L.P.
1325 S. 77 Sunshine Strip, Suite 208
Harlingen, TX 78550
Bankruptcy Case No.: 11-10751
Chapter 11 Petition Date: December 5, 2011
Court: U.S. Bankruptcy Court
Southern District of Texas (Brownsville)
Judge: Richard S. Schmidt
Debtor's Counsel: Ellen C. Stone, Esq.
THE STONE LAW FIRM, P.C.
1105 E. Tyler Avenue
Harlingen, TX 78550
Tel: (956) 440-0398
Fax: (956) 412-0843
E-mail: ignbro@ellenstonelaw.com
Scheduled Assets: $2,715,358
Scheduled Debts: $1,506,068
The petition was signed by Matthew C. Zebrowski, partner/president
of KAMZ Development, general partner.
The Company?s list of its largest unsecured creditors contains
only one entry:
Entity Nature of Claim Claim Amount
------ --------------- ------------
Internal Revenue Service Taxes $1,560
P.O. Box 7346
Philadelphia, PA 19101-7346
GOLDEN NUGGET: S&P Raises Corporate Credit Rating to 'B-'
---------------------------------------------------------
Standard & Poor's Ratings Services raised its corporate credit
rating on Nevada-based Golden Nugget Inc. to 'B-' from 'CC'. The
rating outlook is stable.
"At the same time, we raised our issue-level rating on Golden
Nugget's first-lien credit facilities to 'B-' (the same as the
corporate credit rating on the company) from 'CC', and maintained
our recovery rating of '3' on the first-lien credit facilities,
indicating our expectation of meaningful (50% to 70%) recovery for
lenders in the event of a payment default. We also raised the
rating on the company's second-lien credit facility to 'CCC' (two
notches lower than the corporate credit rating) from C, and
maintained our recovery rating of '6' on the second-lien term
loan, indicating our expectation of negligible (0 to 10%) recovery
for lenders in the event of payment default," S&P said.
"We removed all ratings from CreditWatch, where they were placed
with positive implications on Sep. 29, 2011," S&P related.
"The rating upgrade reflects Golden Nugget's solid performance
thus far in 2011, which meaningfully exceeded our previous
performance expectations," said Standard & Poor's credit analyst
Melissa Long.
"In the nine months ended Sept. 30, 2011, Golden Nugget's revenue
grew in the mid-single digit area and EBITDA increased in the
high-teens percentage area. Like other Las Vegas operators, Golden
Nugget has benefited from meaningful operating leverage in 2011,
given the improvement in room rates in the market. (The company
generates approximately three-quarters of its EBITDA at its
downtown Las Vegas property.) We believe that Golden Nugget will
continue benefitting from improving performance trends in Las
Vegas in 2012. As a result of the company's meaningful improvement
in profitability, along with some meaningful debt repayment,
Golden Nugget's operating lease adjusted leverage has improved
about 2x from the same period a year ago and coverage has improved
to the mid-1x area. Furthermore, we believe that the company's
current level of EBITDA, which covers fixed charges with a
sufficient cushion, is sustainable," S&P said.
"Our 'B-' corporate credit rating on Golden Nugget reflects our
assessment of its financial risk profile as 'highly leveraged', as
we define the term, given high debt balances, despite our
expectation that EBITDA coverage of interest will remain in the
mid-1x area and that it will generate modest discretionary
cash flow that can be used to repay debt," S&P related.
"The rating also incorporates our assessment of Golden Nugget's
business risk profile as 'weak', primarily because of limited
diversification and scale from its ownership of two properties in
Nevada, the concentration of its cash flows in the mature downtown
Las Vegas market, and the volatility of that market during the
recent economic recession. Somewhat offsetting these factors is
Golden Nugget's high quality assets, its leading market position
in downtown Las Vegas in addition to recent improvements to the
property including the opening of Rush Tower, as well as its
recent outperformance relative to other casinos in the market,"
S&P said.
GRAY TELEVISION: Zell Miller Retires from Board of Directors
------------------------------------------------------------
Mr. Zell B. Miller, age 79, announced his retirement from the
board of directors of Gray Television, Inc., effective on Dec. 7,
2011.
About Gray Television
Formerly known as Gray Communications System, Atlanta, Georgia-
based Gray Television, Inc., is a television broadcast company.
Gray currently operates 36 television stations serving 30 markets.
Each of the stations are affiliated with either CBS (17 stations),
NBC (10 stations), ABC (8 stations) or FOX (1 station). In
addition, Gray currently operates 38 digital second channels
including 1 ABC, 4 Fox, 7 CW, 16 MyNetworkTV and 1 Universal
Sports Network affiliates plus 8 local news/weather channels and 1
"independent" channel in certain of its existing markets.
The Company's balance sheet at Sept. 30, 2011, showed $1.23
billion in total assets, $1.08 billion in total liabilities,
$31.33 million in preferred stock and $125.45 million in total
stockholders' equity.
* * *
Gray Television carries 'B-' issuer credit ratings, with stable
outlook, from Standard & Poor's and 'Caa1' corporate family rating
and probability of default rating, with stable outlook, from
Moody's.
"Moody's views the company's current level of financial leverage,
as exacerbated by a concentrated maturity profile, to be
unsustainable for a TV broadcaster and indicative of elevated
restructuring risk over the longer-term," said Moody's Russell
Solomon, Senior Vice President, in April 2010. Pro forma for the
pending transaction, all of Gray's debt (including its debt-like
Series D Preferred Stock) comes due in 2014-2015. Moody's
believes Gray will need to significantly reduce its debt with free
cash flow and will probably need to issue additional equity in
order to further moderate its leverage profile over the next few
years prior to accessing the capital markets again to refinance
current obligations. The Caa1 CFR incorporates Moody's view that
leverage will remain excessive over at least the next two years.
GREAT HEART: Voluntary Chapter 11 Case Summary
----------------------------------------------
Debtor: Great Heart Land, Ltd.
800 Peakwood Drive, Suite 4E
Houston, TX 77090
Bankruptcy Case No.: 11-40393
Chapter 11 Petition Date: December 5, 2011
Court: U.S. Bankruptcy Court
Southern District of Texas (Houston)
Judge: Karen K. Brown
Debtor's Counsel: Jeffery Dayne Carruth, Esq.
WEYCER, KAPLAN, PULASKI & ZUBER, P.C.
3030 Matlock Road, Suite 201
Arlington, TX 76015
Tel: (817) 795-5046
Fax: (866) 666-5322
E-mail: jcarruth@wkpz.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
The Company did not file a list of creditors together with its
petition.
The petition was signed by Gustavo Grieco, manager of GHL LLC,
general partner.
GSW HOLDINGS: Files Amended Schedules of Assets and Liabilities
---------------------------------------------------------------
GSW Holdings LLC filed with the Bankruptcy Court for the Southern
District of Florida an amended schedules of assets and
liabilities, disclosing:
Name of Schedule Assets Liabilities
---------------- ----------- -----------
A. Real Property $22,225,500
B. Personal Property $699
C. Property Claimed as
Exempt
D. Creditors Holding
Secured Claims $8,850,000
E. Creditors Holding
Unsecured Priority
Claims $0
F. Creditors Holding
Unsecured Non-priority
Claims $1,228
----------- -----------
TOTAL $22,225,500 $8,851,228
The Debtor originally scheduled $22,226,800 in assets and
$8,870,000 in liabilities.
Gulfport, Mississippi-based GSW Holdings LLC filed for Chapter 11
bankruptcy (Bankr. S.D. Miss. Case No. 11-52338) on Oct. 11, 2011.
Judge Katharine M. Samson presides over the case. Wheeler &
Wheeler serves as its local bankruptcy counsel.
HANNAH P.: Case Summary & 5 Largest Unsecured Creditors
-------------------------------------------------------
Debtor: Hannah P., Inc.
2900 E. Parker Road
Plano, TX 75074
Bankruptcy Case No.: 11-43669
Chapter 11 Petition Date: December 5, 2011
Court: U.S. Bankruptcy Court
Eastern District of Texas (Sherman)
Debtor's Counsel: Eric A. Liepins, Esq.
ERIC A. LIEPINS P.C.
12770 Coit Road, Suite 1100
Dallas, TX 75251
Tel: (972) 991-5591
E-mail: eric@ealpc.com
Estimated Assets: $0 to $50,000
Estimated Debts: $1,000,001 to $10,000,000
The Company?s list of its five largest unsecured creditors filed
with the petition is available for free at:
http://bankrupt.com/misc/txeb11-43669.pdf
The petition was signed by Ghulan popal, president.
HD SUPPLY: Incurs $105 Million Net Loss in Oct. 30 Quarter
----------------------------------------------------------
HD Supply, Inc., filed with the U.S. Securities and Exchange
Commission its quarterly report on Form 10-Q, reporting a net loss
of $105 million on $2.07 billion of net sales for the three months
ended Oct. 30, 2011, compared with a net loss of $99 million on
$1.87 billion of net sales for the three months ended Oct. 31,
2010.
The Company reported a net loss of $619 million on $7.47 billion
of revenue for the fiscal year ended Jan. 30, 2011, compared with
a net loss of $514 million on $7.42 billion of net sales for the
fiscal year ended Jan. 31, 2010.
The Company reported a net loss of $370 million on $5.89 billion
of net sales for the nine months ended Oct. 30, 2011, compared
with a net loss of $416 million on $5.42 billion of net sales for
the nine months ended Oct. 31, 2010.
The Company's balance sheet at Oct. 30, 2011, showed $6.96 billion
in total assets, $7.21 billion in total liabilities and a $257
million total stockholders' deficit.
Joe DeAngelo, CEO of HD Supply, stated, "The third quarter results
mark the company's sixth consecutive quarter of year-over-year
sales growth. Our accelerating growth and financial strength are
a reflection of the exemplary performance by HD Supply associates
and their successful collaborative efforts with our customers and
suppliers."
A full-text copy of the Form 10-Q is available for free at:
http://is.gd/FwCBJ6
About HD Supply
HD Supply, Inc., headquartered in Atlanta, Georgia, is one of the
largest North American wholesale distributors supporting
residential and non-residential construction and to a lesser
extent electrical consumption and repair and remodeling. HDS also
provides maintenance, repair and operations services. Its
businesses are organized around three segments: Infrastructure and
Energy; Maintenance, Repair & Improvement; and, Specialty
Construction. HDS operates through approximately 800 locations
throughout the U.S. and Canada serving contractors, government
entities, maintenance professionals, home builders and
professional businesses.
* * *
HD Supply carries 'Caa2' probability of default rating and
corporate family rating, with negative outlook, from Moody's
Investors Service, and a 'B' corporate credit rating, with
negative outlook, from Standard & Poor's Ratings Services.
In April 2010, when Moody's downgraded the ratings to
'Caa2' from 'Caa1', it said, "The downgrade results from Moody's
views that the construction industry, the main driver of HDS'
revenues, will continue to be weak for the foreseeable future,
pressuring the company's ability to generate meaningful levels of
earnings and free cash flow relative to its debt."
HIGH PLAINS GAS: Posts $11 Million Net Loss in Third Quarter
------------------------------------------------------------
High Plains Gas, Inc., filed its quarterly report on Form 10-Q,
reporting a net loss of $11.0 million on $2.8 million of revenues
for the three months ended Sept. 30, 2011, compared with a net
loss of $590,619 on $314,025 of revenues for the same period of
2010.
For the nine months ended Sept. 30, 2011, the Company has reported
a net loss of $29.8 million on $10.2 million of revenues, compared
with a net loss of $986,344 on $1.0 of revenues for the
corresponding period last year.
The Company's balance sheet at Sept. 30, 2011, showed
$39.6 million in total assets, $27.7 million in total liabilities,
and stockholders' equity of $11.9 million.
As of Sept. 30, 2011, we had a working capital deficit of
$14,716,558, and for the nine months ended September 30, 2011, our
cash provided by operating activities amounted to $1,803,303," the
Company said in the filing.
"Our results of operations resulted in an accumulated deficit of
$35,636,884 as of Sept. 30, 2011. Further, we have maturing debt
obligations, debt service, revenue payments, lease obligations and
dividend requirements that will require cash payments. We will
need additional financing to continue operations. If additional
financing is not available, we will be compelled to reduce the
scope of our business activities. If we are unable to fund our
operating cash flow needs and planned capital investments, it may
be necessary to sell a portion of our interest in our producing
oil and gas properties, reduce general and administrative
expenses, or a combination of all of these factors."
"These conditions raise substantial doubt about the Company?s
ability to continue as a going concern."
A copy of the Form 10-Q is available for free at:
http://is.gd/oO6Fl5
Gillette, Wyoming-based High Plains Gas, Inc., was formed in
November 2004. Since inception, the Company was engaged in the
business of exploration of natural resource properties in the
United States. As of Sept. 30, 2011, the Company had a total of
1663 methane wells, in which it operated 521 gas producing methane
wells, and 1,145 methane wells were either idle or shut-in and or
not currently producing gas.
HORIZON LINES: Seven New Directors Appointed to Committees
----------------------------------------------------------
Horizon Lines, Inc., previously reported that the Company's Board
of Directors had appointed Jeffrey A. Brodsky, Kurt M. Cellar,
Carol B. Hallett, James LaChance, Steven L. Rubin, Martin Tuchman,
and David N. Weinstein to serve as members of the Company's Board
of Directors effective Nov. 25, 2011. At the time of that filing,
the seven new directors had not been appointed to any committees
of the Company's Board of Directors. The Company said that, on
Dec. 2, 2011, the Company's Board of Directors appointed the new
directors as follows: Mr. Brodsky (as chairperson) and Messrs.
LaChance and Rubin to serve on the Audit Committee; Mr. Tuchman
(as chairperson), Mr. Weinstein and Ms. Hallet to serve on the
Compensation Committee and Mr. Cellar to serve on the Nominating
and Corporate Governance Committee.
About Horizon Lines
Charlotte, N.C.-based Horizon Lines, Inc. (NYSE: HRZ) is the
nation's leading domestic ocean shipping and integrated logistics
company. The Company owns or leases a fleet of 20 U.S.-flag
containerships and operates five port terminals linking the
continental United States with Alaska, Hawaii, Guam, Micronesia
and Puerto Rico. The Company provides express trans-Pacific
service between the U.S. West Coast and the ports of Ningbo and
Shanghai in China, manages a domestic and overseas service partner
network and provides integrated, reliable and cost competitive
logistics solutions.
The Company's balance sheet at Sept. 25, 2011, showed
$677.4 million in total assets, $801.7 million in total
liabilities, and a stockholders' deficit of $124.3 million.
Ernst & Young LLP, in Charlotte, North Carolina, expressed
substantial doubt Horizon Lines' ability to continue as a going
concern, following the Company's results for the fiscal year ended
Dec. 26, 2010. The independent auditors noted that there is
uncertainty that Horizon Lines will remain in compliance with
certain debt covenants throughout 2011 and will be able to cure
the acceleration clause contained in the convertible notes.
"The Company believes the Oct. 5, 2011 refinancing transactions
more fully described in Note 18 to these financial statements have
resolved the concern as to compliance with debt covenants
throughout the remainder of 2011," the Company said in the filing.
"In addition, the Company believes it will be in compliance with
its debt covenants through 2012."
Refinancing
The Company was not in compliance with the maximum senior secured
leverage ratio and the minimum interest coverage ratio under its
Senior Credit Facility at the close of its third fiscal quarter
ended Sept. 25, 2011. Non-compliance with these financial
covenants constituted an event of default, which could have
resulted in acceleration of the maturity. None of the
indebtedness under the Senior Credit Facility or Notes was
accelerated prior to the completion of a comprehensive refinancing
on Oct. 5, 2011.
The Senior Credit Facility and 99.3% of the 4.25% Convertible
Senior Notes were repaid as part of the refinancing. In addition,
as a result of the completion of the refinancing, the short-term
obligations under the Senior Credit Facility, the Notes and the
Bridge Loan have been classified as long-term debt.
As a result of the efforts to refinance the Company's debt and the
2011 amendments to the Senior Credit Facility, the Company paid
$17.3 million in financing costs and recorded a loss on
modification of debt of $0.6 million during 2011.
* * *
As reported by the TCR on Aug. 26, 2011, Standard & Poor's Ratings
Services lowered its long-term corporate credit rating on Horizon
Lines Inc. to 'SD' from 'CCC'.
The rating action on Horizon Lines follow the company's decision
to defer the interest payment on its $330 million senior
convertible notes due August 2012, exercising the 30-day grace
period. "Under our criteria, we view failure to make an interest
payment within five business days after the due date for
payment a default, regardless of the length of the grace period
contained in an indenture," said Standard & Poor's credit analyst
Funmi Afonja.
HORIZON LINES: Stockholders OK 1-for-25 Reverse Stock Split
-----------------------------------------------------------
Horizon Lines, Inc., on Dec. 2, 2011, held a special meeting of
stockholders. At the Special Meeting, stockholders approved the
amendment to the Company's Amended and Restated Certificate of
Incorporation to effect a 1?for?25 reverse stock split of the
Company's common stock. Stockholders also approved the amendment
to the Company's Amended and Restated Certificate of Incorporation
to increase the number of authorized shares of common stock from
100,000,000 to 2,500,000,000. However, this amendment will not
become effective because stockholders approved the amendment to
effect the reverse stock split. In addition, stockholders
approved the amendment to the Company's Amended and Restated
Certificate of Incorporation to authorize the issuance of warrants
in lieu of cash or redemption notes in consideration for "Excess
Shares" to facilitate compliance with the Jones Act.
Stockholders approved the Restated Certificate of Incorporation to
combine into one document all of the provisions of the prior
certificate of incorporation, the elimination of certain
inapplicable provisions and the amendments approved by
stockholders at the Special Meeting.
About Horizon Lines
Charlotte, N.C.-based Horizon Lines, Inc. (NYSE: HRZ) is the
nation's leading domestic ocean shipping and integrated logistics
company. The Company owns or leases a fleet of 20 U.S.-flag
containerships and operates five port terminals linking the
continental United States with Alaska, Hawaii, Guam, Micronesia
and Puerto Rico. The Company provides express trans-Pacific
service between the U.S. West Coast and the ports of Ningbo and
Shanghai in China, manages a domestic and overseas service partner
network and provides integrated, reliable and cost competitive
logistics solutions.
The Company's balance sheet at Sept. 25, 2011, showed
$677.4 million in total assets, $801.7 million in total
liabilities, and a stockholders' deficit of $124.3 million.
Ernst & Young LLP, in Charlotte, North Carolina, expressed
substantial doubt Horizon Lines' ability to continue as a going
concern, following the Company's results for the fiscal year ended
Dec. 26, 2010. The independent auditors noted that there is
uncertainty that Horizon Lines will remain in compliance with
certain debt covenants throughout 2011 and will be able to cure
the acceleration clause contained in the convertible notes.
"The Company believes the Oct. 5, 2011 refinancing transactions
more fully described in Note 18 to these financial statements have
resolved the concern as to compliance with debt covenants
throughout the remainder of 2011," the Company said in the filing.
"In addition, the Company believes it will be in compliance with
its debt covenants through 2012."
Refinancing
The Company was not in compliance with the maximum senior secured
leverage ratio and the minimum interest coverage ratio under its
Senior Credit Facility at the close of its third fiscal quarter
ended Sept. 25, 2011. Non-compliance with these financial
covenants constituted an event of default, which could have
resulted in acceleration of the maturity. None of the
indebtedness under the Senior Credit Facility or Notes was
accelerated prior to the completion of a comprehensive refinancing
on Oct. 5, 2011.
The Senior Credit Facility and 99.3% of the 4.25% Convertible
Senior Notes were repaid as part of the refinancing. In addition,
as a result of the completion of the refinancing, the short-term
obligations under the Senior Credit Facility, the Notes and the
Bridge Loan have been classified as long-term debt.
As a result of the efforts to refinance the Company's debt and the
2011 amendments to the Senior Credit Facility, the Company paid
$17.3 million in financing costs and recorded a loss on
modification of debt of $0.6 million during 2011.
* * *
As reported by the TCR on Aug. 26, 2011, Standard & Poor's Ratings
Services lowered its long-term corporate credit rating on Horizon
Lines Inc. to 'SD' from 'CCC'.
The rating action on Horizon Lines follow the company's decision
to defer the interest payment on its $330 million senior
convertible notes due August 2012, exercising the 30-day grace
period. "Under our criteria, we view failure to make an interest
payment within five business days after the due date for
payment a default, regardless of the length of the grace period
contained in an indenture," said Standard & Poor's credit analyst
Funmi Afonja.
HOSPITALITY ASSET: Voluntary Chapter 11 Case Summary
----------------------------------------------------
Debtor: Hospitality Asset Investments, Inc.
dba Corporate Inn and Suites
1525 Interstate 45 S.
Conroe, TX 77301-4422
Bankruptcy Case No.: 11-40151
Chapter 11 Petition Date: December 4, 2011
Court: U.S. Bankruptcy Court
Southern District of Texas (Houston)
Judge: Karen K. Brown
Debtor's Counsel: Margaret Maxwell McClure, Esq.
LAW OFFICE OF MARGARET M. MCCLURE
909 Fannin, Suite 3810
Houston, TX 77010
Tel: (713) 659-1333
Fax: (713) 658-0334
E-mail: margaret@mmmcclurelaw.com
Estimated Assets: $500,001 to $1,000,000
Estimated Debts: $1,000,001 to $10,000,000
The Company did not file a list of creditors together with its
petition.
The petition was signed by Shobhan D. Patel, president.
HSW INTERNATIONAL: Posts $2.1 Million Net Loss in Third Quarter
---------------------------------------------------------------
HSW International, Inc., filed its quarterly report on Form 10-Q,
reporting a net loss of $2.1 million on $1.2 million of revenues
for the three months ended Sept. 30, 2011, compared with a net
loss of $1.2 million on $2.0 million for the corresponding period
of 2010.
For the nine months ended Sept. 30, 2011, the Company has reported
a net loss of $4.8 million on $4.0 million of revenues, compared
with a net loss of $4.2 million on $4.9 million of revenues for
the same period last year.
The Company's balance sheet at Sept. 30, 2011, showed $5.7 million
in total assets, $1.1 million in total liabilities, and
stockholders' equity of $4.6 million.
"Based upon the Company's present cash resources and cash flow
projections, management believes that the Company's current
liquidity level will provide sufficient funds to enable the
Company to operate its businesses through the first quarter of
2012," the Company said in the filing. "However, in order to
ensure the Company's financial viability beyond the first quarter
of 2012, management believes that the Company must raise
additional capital and successfully implement a strategic business
plan focused on expanding its web platform services business
segment while continuing to reduce its costs and operating losses
currently incurred by its digital online publishing business
segment."
"There can be no assurance that the Company will be able to raise
additional capital, renew its line of credit, generate more
revenues, implement cost savings measures or obtain short-term
financing from other sources in the future.
"If the Company is unable to raise additional capital, it may
decide to reallocate its resources or suspend our activities in
one or more of our markets in order to focus our limited resources
in other opportunities. The aforementioned uncertainties
regarding the liquidity indicate that there is a substantial doubt
that the Company will be able to continue as a going concern."
A copy of the Form 10-Q is available for free at:
http://is.gd/SHgIEN
HSW International, Inc., headquartered in Atlanta, Ga., is an
online media company that develops and operates next-generation
web publishing platforms combining traditional web publishing with
social media.
HWI GLOBAL: Posts $356,900 Net Loss in Third Quarter
----------------------------------------------------
HWI Global, Inc., formerly IVT Software, Inc., filed its quarterly
report on Form 10-Q, reporting a net loss of $356,927 on
$1.0 million of contract revenues earned for the three months
ended Sept. 30, 2011, compared with a net loss of $150,649 on
$565,026 of contract revenues earned for the same period of 2010.
For the nine months ended Sept. 30, 2011, the Company has reported
a net loss of $885,409 on $2.8 million of contract revenues
earned, compared with net income of $4,326 on $2.7 million of
contract revenues earned for the same period last year.
The Company's balance sheet at Sept. 30, 2011, showed $1.1 million
in total assets, $2.6 million in total current liabilities, and a
stockholders' deficit of $1.5 million.
As reported in the TCR on May 3, 2011, MaloneBailey, LLP, in
Houston, expressed substantial doubt about IVT Software (now known
as HWI Global)'s ability to continue as a going concern, following
the Company's results for the fiscal year ended Dec. 31, 2010.
The independent auditors noted that the Company has suffered
recurring losses from operations.
A complete text of the Form 10-Q is available for free at:
http://is.gd/pclYMD
HWI Global, Inc., headquartered in Pittsburgh, Pa., is a turnkey
provider of cleanroom systems; designing, engineering,
manufacturing, installing and servicing principal component
systems for advanced cleanrooms.
IMPERIAL PETROLEUM: Greg Thagard Appointed as Board Chairman
------------------------------------------------------------
Imperial Petroleum, Inc., announced that J. Greg Thagard, a
director of the Company has been appointed to the position of
Chairman of the Board.
Mr. Thagard, a Director of Imperial Petroleum since August 2007,
has extensive experience in all aspects of the petroleum industry
for the past 34 years. After selling a royalty portfolio of over
1,500 producing properties in which he was both a principal and
manager, he performed outside contract operating and consulting
work as well as similar duties for his family business.
In addition, Mr. Tim Jones, currently the Chief Financial Officer
of Imperial Petroleum and President of e-Biofuels, was appointed
to the Board of Directors. Mr. Jones, a Certified Public
Accountant, has 11 years of finance and accounting experience
including 5 years in public accounting at Ernst & Young.
Mr. John Ryer, CEO and President of Imperial Petroleum and a
Director, stated, "The elevation of Greg Thargard to Chairman and
the selection of Tim Jones as a Board member strengthens the
Imperial board. We are actively looking to further enhance the
Board by bringing on two independent members whose standing,
experience and credentials will add additional insight , corporate
governance and guidance and contribute greatly to the future
success of Imperial."
About Imperial Petroleum
Headquartered in Evansville, Ind., Imperial Petroleum Inc.
(OTC BB: IPMN) operates as a diversified energy and mineral mining
company in the United States. Its oil and natural gas properties
include the Coquille Bay field located in Plaqumines Parish,
Louisiana; the Haynesville field located in Claiborne and Webster
Parishes in north Louisiana; the Bastian Bay field located in
Plaquemines parish, Louisiana; LulingField located in Guadalupe
county, Texas; and the Shrewsbury field in Grayson County and the
Claymour field in Todd County, western Kentucky.
As reported by the TCR on June 24, 2011, the Company anticipates
its current working capital will not be sufficient to meet its
required capital expenditures and that the Company will be
required to either access additional borrowings from its lender or
access outside capital. Currently the Company projects it will
require non-discretionary capital expenditures of approximately
US$500,000 in the next fiscal year to re-establish and maintain
economic levels of production at Coquille Bay. Without access to
such capital for non-discretionary projects, the Company's
production may be significantly curtailed or shut in and
jeopardize its leases.
The Company's balance sheet at July 31, 2011, showed
$24.53 million in total assets, $24.10 million in total
liabilities, and $431,300 in total stockholders' equity.
Weaver Martin & Samyn, LLC, in Kansas City Missouri, expressed
substantial doubt about the Company's ability to continue as a
going concern. The independent auditors noted that the Company
has suffered recurring losses from operations and is dependent
upon obtaining debt financing for funds to meet its cash
requirements.
IMPERIAL INVESTMENT: Voluntary Chapter 11 Case Summary
------------------------------------------------------
Debtor: Imperial Investment & Development Co., LLC
426 S Main Street
Milpitas, CA 95035
Bankruptcy Case No.: 11-61156
Chapter 11 Petition Date: December 5, 2011
Court: United States Bankruptcy Court
Northern District of California (San Jose)
Judge: Charles Novack
Debtor's Counsel: Dennis Yan, Esq.
LAW OFFICE OF DENNIS YAN
595 Market St. #1350
San Francisco, CA 94105
Tel: (415) 867-5797
E-mail: DENNISY@YAHOO.COM
Scheduled Assets: $2,000,000
Scheduled Debts: $628,947
The Debtor did not file a list of its largest unsecured creditors
together with its petition.
The petition was signed by Steven Banh, president.
IMPERIAL RESOURCES: Posts $314,200 Net Loss in Sept. 30 Quarter
---------------------------------------------------------------
Imperial Resources, Inc., filed its quarterly report on Form 10-Q,
reporting a net loss of $314,213 on $20,449 of oil and gas revenue
for the three months ended 30, 2011, compared with a net loss of
$11,693 on $46,445 of oil and gas revenue for the corresponding
period in 2010.
For the six months ended Sept. 30, 2011, the Company has reported
a net loss of $404,269 on $47,931 of oil and gas revenue, compared
with a net loss of $15,490 on $67,634 of oil and gas revenue for
the same period last year.
The Company's balance sheet at Sept. 30, 2011, showed $2.4 million
in total assets, $1.9 million in total liabilities, and
stockholders' equity of $460,368.
Madsen & Associates, CPA's Inc., in Salt Lake City, expressed
substantial doubt about Imperial Resources' ability to continue as
a going concern, following the Company's results for the fiscal
year ended March 31,2011. The independent auditors noted that the
Company will need additional working capital to service its debt
and for its planned activity.
A copy of the Form 10-Q is available for free at:
http://is.gd/kpTO2F
Austin, Tex.-based Imperial Resources, Inc., is engaged in the
exploration and development of oil and natural gas properties.
The Company acquires the oil and gas interests in various manners,
by purchasing them or via a farm-in. In addition, the Company has
purchased a salt water disposal facility.
INCOMING INC: Posts $878,700 Net Loss in Third Quarter
------------------------------------------------------
Incoming, Inc., filed its quarterly report on Form 10-Q for the
successor period July 1, 2011, through Sept. 30, 2011. Successor
company references herein are referring to consolidated
information pertaining to Incoming, Inc., the registrant.
Predecessor company references herein relate to North American
Bio-Energies, LLC, the former owner and manager of the biodiesel
production facility (doing business as Foothills Bio-Energies),
and its operations at the facility located in Lenoir, North
Carolina.
The Company reported a net loss of $878,748 on $825,830 of
revenues for the successor period July 1, 2011, through Sept. 30,
2011, compared with net income of $12,327 on $23,372 of revenues
for the predecessor period July 1, 2010, through Aug. 23, 2010,
and a net loss of $56,058 on $19,194 of revenues for the successor
period Aug. 24, 2010, through Sept. 30, 2010.
For the successor period Jan. 1, 2011, through Sept. 30, 2011, the
Company has reported a net loss of $1.1 million on $1.3 million of
revenues, compared with a net loss of $17,670 on $442,123 of
revenues for the predecessor period Jan. 1, 2010, through Aug. 23,
2010, and a net loss of $56,058 on $19,194 of revenues for the
successor period Aug. 24, 2010, through Sept. 30, 2010.
The Company's balance sheet at Sept. 30, 2011, showed $1.8 million
in total assets, $1.1 million in total liabilities, and
stockholders' equity of $748,117.
As of Dec. 31, 2010, the Company had a working capital deficiency
of $248,564, and had accumulated a deficit of $4.1 million. As of
Sept. 30, 2011, the Company had a working capital deficiency of
$227,708, and had accumulated a deficit of $5.2 million. "Its
ability to continue as a going concern is dependent upon the
ability of the Company to generate profitable operations in the
future and/or to obtain the necessary financing to meet its
obligations and repay its liabilities arising from normal business
operations when they come due," the Company said in the filing.
"The outcome of these matters cannot be predicted with any
certainty at this time. These factors raise substantial doubt
that the Company will be able to continue as a going concern.'
A copy of the Form 10-Q is available for free at:
http://is.gd/vmLAW7
Headquartered in New York, Incoming, Inc. (OTC: ICNN)
-- http://www.incominginc.com/-- and its wholly-owned subsidiary
North American Bio-Energies, LLC, is engaged in the production and
distribution of biodiesel and renewable fuels. The Company's goal
is to become the leading diversified energy company with divisions
in production, blending, marketing and distribution. The Company
continues to pursue an acquisition plan that includes the
expansion into Brazil's renewable energy market. Government
mandates, strong tax incentives and an auction-based selling
platform make Brazil, in management's view, a potentially
profitable climate for clean energy.
INSTACARE CORP: Posts $441,800 Net Loss in 2011 Third Quarter
-------------------------------------------------------------
InstaCare Corp. filed its quarterly report on Form 10-Q, reporting
a net loss of $441,852 on $3.6 million of revenue for the three
months ended Sept. 30, 2011, compared with net income of $138,289
on $4.8 million of revenue for the same period of 2010.
For the nine months ended Sept. 30, 2011, the Company has reported
a net loss of $721,131 on $10.6 million of revenue, compared with
net income of $583,518 on $14.1 million of revenue for the
corresponding period last year.
The Company's balance sheet at Sept. 30, 2011, showed $5.2 million
in total assets, $3.0 million in current liabilities, $205,500 in
contingent legal and product liability fees, and stockholders'
equity of $2.0 million.
Seale & Beers, CPA's, in Las Vegas, Nevada, expressed substantial
doubt about InstaCare Corp.'s ability to continue as a going
concern, following the Company's results for the fiscal year ended
Sept. 30, 2011. The independent auditors noted that the Company
has suffered recurring losses from operations.
A copy of the Form 10-Q is available for free at:
http://is.gd/dfOdbH
Westlake Village, Calif.-based InstaCare Corp. is a nationwide
prescription and non-prescription diagnostics and home testing
products distributor.
JBI INC: Posts $3.7 Million Net Loss in Third Quarter
-----------------------------------------------------
JBI, Inc., filed its quarterly report on Form 10-Q, reporting a
net loss of $3.7 million on $791,995 of sales for the three months
ended Sept. 30, 2011, compared with a net loss of $1.6 million on
$1.5 million of sales for the same period of 2010.
For the nine months ended Sept. 30, 2011, the Company has reported
a net loss of $13.0 million on $1.9 million of sales, compared
with a net loss of $6.7 million on $5.6 million of sales for the
same period last year.
The Company's balance sheet at Sept. 30, 2011, showed $7.8 million
in total assets, $2.7 million in total liabilities, and
stockholders' equity of $5.1 million.
SCM LLP, in Toronto, Canada, expressed substantial doubt about
JBI's ability to continue as a going concern, following the
Company's 2010 results. The independent auditors noted that of
the Company's recurring losses from operations and its dependency
on future financing.
A complete text of the Form 10-Q is available at:
http://is.gd/7KuEr0
Thorold, Ontario-based JBI, Inc., is a company with a diverse
array of products and services, including three key business
operations: (1) Plastic2Oil ("P2O"), an alternative oil and gas
company that converts waste plastic into fuel; primarily diesel,
#2 fuel oil, and #6 fuel oil; (2) Javaco, a retail/wholesale
telecommunications distributor; and (3) Corporate, a data recovery
and migration business.
JETT RACING: Case Summary & 20 Largest Unsecured Creditors
----------------------------------------------------------
Debtor: Jett Racing & Sales, Inc.
1301 Lincoln Street, Suite 5
Laredo, TX 78040
Bankruptcy Case No.: 11-50285
Chapter 11 Petition Date: December 5, 2011
Court: U.S. Bankruptcy Court
Southern District of Texas (Laredo)
Judge: David R. Jones
Debtor's Counsel: Fernando D. Gutierrez, Jr., Esq.
LAW OFFICE OF FERNANDO D. GUTIERREZ, JR.
604 Matamoros Street
Laredo, TX 78040
Tel: (956) 726-0041
Fax: (956) 726-3025
E-mail: fdgtzlegal@stx.rr.com
Scheduled Assets: $8,608,222
Scheduled Debts: $3,960,664
The Company?s list of its 20 largest unsecured creditors filed
with the petition is available for free at:
http://bankrupt.com/misc/txsb11-50285.pdf
The petition was signed by Wolf Hofman, president.
JEWISH COMMUNITY CENTER: Files for Chapter 11 Bankruptcy
--------------------------------------------------------
The Ruth Hyman Jewish Community Center of Greater Monmouth County,
New Jersey, filed on Dec. 5, 2011, for Chapter 11 bankruptcy. Dan
Radel at Asbury Park Press reports the center has been in a
foreclosure suit with TD Bank, represented by the law firm
Buchanan Ingersoll and Rooney in Princeton, and was scheduled for
public auction by the Sheriff's Department at the Hall of Records
in Freehold on Dec. 5, 2011, when the center's board of directors
made the decision to file for bankruptcy.
"As we were not able to get an extension, it left us no other
option than to file for bankruptcy," Asbury Park Press quotes
Steve Levy, the president of the board of directors for the
center, as saying.
The center had requested two adjournments of the public auction on
Oct. 24, 2011, and Nov. 7, 2011, and could no longer request a
postponement. However, before the scheduled sale on Nov. 21, 2011,
TD Bank allowed for an additional adjournment, the report says.
Timothy Neumann of Broege, Neumann, Fisher and Shaver LLC,
represents the Center. The center had estimated both assets and
liabilities of between $10 million and $50 million. The center
also has listed it estimated number of unsecured creditors as
between 200 and 999.
Ruth Hyman Jewish Community Center -- http://jccmonmouth.org/--
is a nonprofit corporation located at 100 Grant Ave. in the Deal
Park section of the township, New Jersey.
JUST MARSE: Case Summary & 5 Largest Unsecured Creditors
--------------------------------------------------------
Debtor: Just Marse, LP
131 McClintock
El Paso, TX 79932
Bankruptcy Case No.: 11-32404
Chapter 11 Petition Date: December 5, 2011
Court: United States Bankruptcy Court
Western District of Texas (El Paso)
Judge: H. Christopher Mott
Debtor's Counsel: Sidney J. Diamond, Esq.
DIAMOND LAW
3800 N Mesa B-3
El Paso, TX 79902
Tel: (915) 532-3327
Fax: (915) 532-3355
E-mail: usbc@sidneydiamond.com
Scheduled Assets: $2,042,604
Scheduled Debts: $2,116,123
A list of the Company's five largest unsecured creditors filed
together with the petition is available for free at
http://bankrupt.com/misc/txwb11-32404.pdf
The petition was signed by Maria L. Torres, manager.
KV PHARMACEUTICAL: Reports $271MM Fiscal 2011 Loss in Form 10-K/A
-----------------------------------------------------------------
K-V Pharmaceutical Company filed with the U.S. Securities and
Exchange Commission amendments to its Annual Report on Form 10-K
for the fiscal year ended March 31, 2011, and Quarterly Report on
Form 10-Q for the period ended Dec. 31, 2010.
The Company issued warrants to purchase shares of its Class A
Common Stock in November 2010 and March 2011 to its lenders in
connection with certain financing transactions.
The Company originally classified the Warrants as equity
instruments from their respective issuance dates until the
March 17, 2011, amendment of the Warrant provisions which added a
contingency feature and an escrow requirement. At that date, the
Warrants were revalued and reclassified from equity to
liabilities. The Company also had originally used a Black-Scholes
option valuation model to determine the value of the Warrants.
Upon a re-examination of the provisions of the Warrants, the
Company determined that the non-standard anti-dilution provisions
contained in the Warrants require that the Warrants (a) all be
treated as liabilities from their respective issuance dates and
(b) their value should be calculated utilizing a valuation model
which considers the mandatory conversion features of the Warrants
and the possibility that the Company may issue additional common
shares or common share equivalents that, in turn, could result in
a change to the number of shares issuable upon exercise of the
Warrants and the related exercise price. As a result, the Company
has revalued the Warrants from their respective dates of issuance
using a Monte Carlo simulation model and reclassified the Warrants
as a long term liability.
On Nov. 7, 2011, the Audit Committee of the Company's Board of
Directors, upon recommendation from management, determined that
the previously issued consolidated financial statements included
in the Company's Original Form 10-K and in the Company's Quarterly
Reports on Form 10-Q for the quarters ended Dec. 31, 2010, and
June 30, 2011, should not be relied upon. The restatements did
not change the Company?s reported cash and cash equivalents,
operating expenses, operating losses or cash flows from operations
for any period or date.
K-V Pharmaceutical's restated statement of operations reflects a
net loss of $271.70 million on $27.30 million of net revenues for
the year ended March 31, 2011, compared with a net loss of $283.60
million on $9.10 million of net revenues during the prior year.
The previous 10-K reported a net loss of $174 million on $27.30
million of net revenues for the year ended March 31, 2011,
compared with a net loss of $283.60 million on $9.10 million of
net revenues during the prior year.
The Company's restated statement of operations reflects a net loss
of $47.79 million on $5.42 million of net revenues for the three
months ended Dec. 31, 2010, compared with net income of $108.58
million on $147.48 million of net revenues for the same period a
year ago. The original Form 10-Q reported a net loss of $46.66
million on $5.42 million of net revenues for the three months
ended Dec. 31, 2010, compared with net income of $108.58 million
on $147.48 million of net revenues during the prior year.
The Company's restated balance sheet at of March 31, 2011, showed
$564.70 million in total assets, $942.50 million in total
liabilities and a $377.80 million total shareholders' deficit,
compared with $564.70 million in total assets, $938.70 million in
total liabilities and a $374 million total shareholders' deficit.
KPMG LLP, in St. Louis, Missouri, expressed substantial doubt
about K-V Pharmaceutical's ability to continue as a going concern.
The independent auditors noted that the Company has suspended the
shipment of all products manufactured by it and must comply with a
consent decree with the FDA before approved products can be
reintroduced to the market. Significant negative impacts on
operating results and cash flows from these actions including the
potential inability of the Company to raise capital; suspension of
manufacturing; significant uncertainties related to litigation and
governmental inquiries; and debt covenant violations.
A full-text copy of the amended Form 10-K is available at:
http://is.gd/BhfQlJ
A full-text copy of the amended Form 10-Q is available at:
http://is.gd/KOv1T0
About KV Pharmaceutical Company
KV Pharmaceutical Company (NYSE: KVa/KVb) --
http://www.kvpharmaceutical.com/-- is a fully integrated
specialty pharmaceutical company that develops, manufactures,
markets, and acquires technology-distinguished branded and
generic/non-branded prescription pharmaceutical products. The
Company markets its technology distinguished products through
ETHEX Corporation, a subsidiary that competes with branded
products, and Ther-Rx Corporation, the company's branded drug
subsidiary.
KV Pharmaceutical has not timely filed its Form 10-K for the year
ended March 31, 2010 and its Form 10-Qs for the subsequent
quarterly periods. The Company's independent accounting firm,
KPMG, resigned on June 25, 2010, and the Company has tapped BDO
USA, LLP, to audit the fiscal 2010 financial statements. The Form
10-Q for the quarter ended June 30, 2010, was only filed March 10,
2011.
The Company was not able to complete its Form 10-Q for the three-
and six-month periods ended Sept. 30, 2011, by the filing deadline
of Nov. 9, 2011, without unreasonable effort and expense. The
Company expects to file this Form 10-Q with the SEC as soon as
practicable after filing the amended filings, and, in any case,
within five days of those filings.
L.A. DODGERS: Gets OK to Market Media Rights Over Fox Protest
-----------------------------------------------------------
Lance Duroni at Bankruptcy Law360 and Dow Jones' Daily Bankruptcy
Review report that Bankruptcy Judge Kevin Gross on Thursday said
he would allow the Los Angeles Dodgers to market rights to
broadcast their games from 2014 on, over the protest of Fox
Sports, the current broadcaster, which said the sale plan
threatens to damage its business.
According to Law360, Judge Gross indicated at the end of a two-day
hearing that the marketing procedures proposed by the Dodgers did
not drastically alter back-end contract rights designed to give
Fox the inside track on negotiating a new deal.
Crying foul over potential damages for breach of contract, Fox
Sports Net Inc. -- the Los Angeles Dodgers LLC's current broadcast
partner -- fought Wednesday to scuttle the team's plan to auction
its future television rights at a pivotal hearing in Delaware
bankruptcy court. Law360 relates that the Fox affiliate that
operates as FSN Prime Ticket contends it has the exclusive right
under its current contract -- which expires after the 2013 season
-- to negotiate a new deal with the Dodgers until Nov. 30, 2012.
About Los Angeles Dodgers
Los Angeles Dodgers LLC operates the Los Angeles Dodgers, a
professional Major League Baseball club in the Los Angeles
metropolitan area. Frank McCourt, a Boston real-estate developer
who unsuccessfully bid for the Boston Red Sox, bought the Dodgers
from Rupert Murdoch's Fox Entertainment Group, Inc. in 2004 for
$330 million. Mr. McCourt also bought the Dodgers Stadium from
Fox for $100 million.
Los Angeles Dodgers LLC filed for bankruptcy protection (Bankr.
D. Del. Lead Case No. 11-12010) on June 27, 2011, after MLB
Commissioner Bud Selig rejected a television deal with News
Corp.'s Fox Sports, leaving Mr. McCourt unable to make payroll for
June 30 and July 1. Fox Sports has exclusive cable television
rights for Dodgers games until the end of 2013 baseball season.
Chapter 11 filings were also made for LA Real Estate LLC, an
affiliated entity which owns Dodger Stadium, and three other
related holding companies.
The petition estimates assets of up to $500 million and debts of
up to $1 billion. In its schedules, the LA Dodgers baseball club
disclosed $77,963,734 in assets and $4,695,702 in liabilities. LA
Real Estate LLC disclosed $161,761,883 in assets and $0 in
liabilities.
According to Forbes, the team is worth about $800 million, making
it the third most valuable baseball team after the New York
Yankees and the Boston Red Sox.
Judge Kevin Gross presides over the case. Lawyers at Young,
Conaway, Stargatt & Taylor and Dewey & LeBoeuf LLP serve as the
Debtors' bankruptcy counsel. Epiq Bankruptcy Solutions LLC is the
claims and notice agent. Public relations specialist Kekst and
Company has been hired for crisis support. Covington & Burling
LLP serves as special counsel.
An official committee of unsecured creditors has been appointed in
the case. The panel has tapped Lazard Freres & Co. as financial
adviser and investment banker, and Morrison & Foerster LLP and
Pinckney, Harris & Weidinger, LLC as counsel.
The LA Dodgers is the 12th sports team in North America to have
Journal.
sought bankruptcy protection, according to The Wall Street
The reorganization is being financed with a $150 million unsecured
loan from the Commissioner of Major League Baseball. The loan
gives the Commissioner few of the controls lenders often demanded
from bankrupt companies.
L.A. DODGERS: To Pay $1.1 Million Critical Vendors Claims
---------------------------------------------------------
The Hon. Kevin Gross of the U.S. Bankruptcy Court for the District
of Delaware authorized Los Angeles Dodgers LLC, et al., to pay
prepetition claims owed to critical vendors in an aggregate amount
not to exceed $1,111,333.
The Court ordered that the payments may only be made in accordance
with the terms of any order approving and authorizing postpetition
financing and any applicable budget under the financing order.
The Debtor is also authorized to issue postpetition checks, or to
effect postpetition fund transfer request in respect of critical
vendor claims that have been dishonored or rejected.
About Los Angeles Dodgers
Los Angeles Dodgers LLC operates the Los Angeles Dodgers, a
professional Major League Baseball club in the Los Angeles
metropolitan area. Frank McCourt, a Boston real-estate developer
who unsuccessfully bid for the Boston Red Sox, bought the Dodgers
from Rupert Murdoch's Fox Entertainment Group, Inc. in 2004 for
$330 million. Mr. McCourt also bought the Dodgers Stadium from
Fox for $100 million.
Los Angeles Dodgers LLC filed for bankruptcy protection (Bankr.
D. Del. Lead Case No. 11-12010) on June 27, 2011, after MLB
Commissioner Bud Selig rejected a television deal with News
Corp.'s Fox Sports, leaving Mr. McCourt unable to make payroll for
June 30 and July 1. Fox Sports has exclusive cable television
rights for Dodgers games until the end of 2013 baseball season.
Chapter 11 filings were also made for LA Real Estate LLC, an
affiliated entity which owns Dodger Stadium, and three other
related holding companies.
The petition estimates assets of up to $500 million and debts of
up to $1 billion. In its schedules, the LA Dodgers baseball club
disclosed $77,963,734 in assets and $4,695,702 in liabilities. LA
Real Estate LLC disclosed $161,761,883 in assets and $0 in
liabilities.
According to Forbes, the team is worth about $800 million, making
it the third most valuable baseball team after the New York
Yankees and the Boston Red Sox.
Judge Kevin Gross presides over the case. Lawyers at Young,
Conaway, Stargatt & Taylor and Dewey & LeBoeuf LLP serve as the
Debtors' bankruptcy counsel. Epiq Bankruptcy Solutions LLC is the
claims and notice agent. Public relations specialist Kekst and
Company has been hired for crisis support. Covington & Burling
LLP serves as special counsel.
An official committee of unsecured creditors has been appointed in
the case. The panel has tapped Lazard Freres & Co. as financial
adviser and investment banker, and Morrison & Foerster LLP and
Pinckney, Harris & Weidinger, LLC as counsel.
The LA Dodgers is the 12th sports team in North America to have
sought bankruptcy protection, according to The Wall Street
Journal.
The reorganization is being financed with a $150 million unsecured
loan from the Commissioner of Major League Baseball. The loan
gives the Commissioner few of the controls lenders often demanded
from bankrupt companies.
LAGUNA RESOURCES: Case Summary & 20 Largest Unsecured Creditors
---------------------------------------------------------------
Debtor: Laguna Resources, LTD
P.O. Box 22858
Beaumont, TX 77706
Bankruptcy Case No.: 11-80648
Chapter 11 Petition Date: December 5, 2011
Court: U.S. Bankruptcy Court
Southern District of Texas (Galveston)
Judge: Letitia Z. Paul
Debtor's Counsel: Richard L. Fuqua, II, Esq.
FUQUA & ASSOCIATES, PC
5005 Riverway, Suite 250
Houston, TX 77056
Tel: (713) 960-0277
E-mail: fuqua@fuquakeim.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
The Company?s list of its 20 largest unsecured creditors filed
with the petition is available for free at:
http://bankrupt.com/misc/txsb11-80648.pdf
The petition was signed by T.W. Harrison, manager of Criwn Team
Texas, LLC, general partner.
LANDINGS INVESTMENT: Case Summary & 20 Largest Unsecured Creditors
------------------------------------------------------------------
Debtor: Landings Investment Group, LLC
309 Statham's Way
Warner Robins, GA 31088
Bankruptcy Case No.: 11-53852
Chapter 11 Petition Date: December 5, 2011
Court: United States Bankruptcy Court
Middle District of Georgia (Macon)
Debtor's Counsel: Wesley J. Boyer, Esq.
KATZ, FLATAU, POPSON AND BOYER, LLP
355 Cotton Avenue
Macon, GA 31201
Tel: (478) 742-6481
E-mail: wjboyer_2000@yahoo.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
A list of the Company's 20 largest unsecured creditors filed
together with the petition is available for free at
http://bankrupt.com/misc/gamb11-53852.pdf
The petition was signed by Edwin L. Wolfe.
LEHMAN BROTHERS: Readies $1.33BB to Buy Banks' Stake in Archstone
-----------------------------------------------------------------
Eliot Brown and Mike Spector, writing for The Wall Street Journal,
report that people familiar with the matter said Lehman Brothers
Holdings Inc.'s bankruptcy estate is preparing to make a cash bid
for a chunk of Archstone it doesn't already own, in a move
designed to block real-estate mogul Sam Zell from grabbing the
piece of the large apartment company. The sources said Lehman's
estate, which owns 47% of Archstone, is readying a $1.33 billion
cash bid for another 26.5% of the company, which owns stakes in
77,000 apartments in major cities across the U.S. and in Germany.
One source told WSJ that Lehman plans to file a bankruptcy-court
motion as soon as this week asking a judge for permission to use
the estate's cash to do the deal.
Mr. Zell's Equity Residential has reached an agreement to pay
$1.33 billion for the 26.5% stake from Bank of America Corp. and
Barclays PLC. The banks currently own 53% of Archstone. Lehman's
estate has the right to match any offer made for pieces of
Archstone it doesn't own.
The Journal says a Lehman spokeswoman had no immediate comment. An
Equity Residential spokesman declined to comment.
The Journal notes the Archstone deal is part of a massive effort
by Lehman's estate to wind down assets and pay $65 billion to
creditors. The estate has about $20 billion to $30 billion in
cash for creditors so far and could spend another three to five
years unwinding remaining assets. Archstone is among its
significant remaining holdings.
The Journal says Lehman's estate wants to retain control of
Archstone and eventually raise money for creditors by taking it
public, betting on continued strength in the apartment market.
WSj says the fight over Archstone is complicated because, under
the ownership agreement, any large owner of Archstone has veto
power over major decisions. According to the report, Mr. Zell's
deal for the two banks' stake values Archstone at about $16
billion, including about $11 billion in debt.
WSJ notes Lehman said in a filing with the Securities and Exchange
Commission earlier last week that it believes the values of
Archstone's properties are worth at least $1 billion more than
Equity Residential's bid implies. It further believes Mr. Zell's
bid didn't adequately value the management and operating platform
of the company.
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.
At the onset of the Chapter 11 case, the Bankruptcy Court 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.
On Dec. 6, 2011, Bankruptcy Judge James Peck confirmed Lehman
Brother's liquidation plan. Lehman hopes for its plan to be
effective by the end of January. The company will continue to
exist, however, as it still has pending litigation plus billions
of dollars in assets, mostly in real estate.
Bryan Marsal, Lehman's Court-appointed CEO, aims to raise $65
billion from Lehman assets in the next few years and will
distribute some of the $23 billion to creditors in the first
quarter. Final claims are expected to total $370 billion, giving
the average creditor less than 18 cents on the dollar.
International Operations Collapse
Lehman Brothers International (Europe), the principal UK trading
company in the Lehman group, was placed into administration,
together with Lehman Brothers Ltd, LB Holdings PLC and LB UK RE
Holdings Ltd. Tony Lomas, Steven Pearson, Dan Schwarzmann and
Mike Jervis, partners at PricewaterhouseCoopers LLP, have been
appointed as joint administrators to Lehman Brothers
International (Europe) on Sept. 15, 2008. The joint
administrators have been appointed to wind down the business.
Lehman Brothers Japan Inc. and Lehman Brothers Holdings Japan
Inc. filed for bankruptcy in the Tokyo District Court on
Sept. 16. Lehman Brothers Japan Inc. reported about JPY3.4
trillion (US$33 billion) in liabilities in its petition.
Bankruptcy Creditors' Service, Inc., publishes Lehman Brothers
Bankruptcy News. The newsletter tracks the Chapter 11 proceeding
undertaken by Lehman Brothers Holdings, Inc., and other
insolvency and bankruptcy proceedings undertaken by its
affiliates. (http://bankrupt.com/newsstand/or
215/945-7000)
LEHMAN BROTHERS: UBS Fraudulently Hawked Notes, Says Vernon Healy
-----------------------------------------------------------------
UBS fraudulently misrepresented Lehman principal protected notes
in a heavy sales push to its brokerage firm clients at a time when
it was systematically shedding its own Lehman debt behind the
scenes in advance of the Lehman Brothers bankruptcy, according to
a claim filed by the nationwide investor advocacy law firm Vernon
Healy.
Holders of Lehman notes have been left standing at the back of the
line with unsecured creditors in the Lehman Brothers Bankruptcy
despite the fact that UBS marketed the notes as safe and principal
protected, according to the claim. UBS sold an estimated $1
billion in Lehman principal protected notes to main street
investors who are now holding virtually worthless paper, according
to the claim.
Vernon Healy filed close to a half million in claims today on
behalf of two UBS clients who assert that they were fraudulently
sold Lehman structured products that UBS touted as safe and
"principal protected." The law firm has filed close to $12
million in Lehman notes arbitration claims on behalf of investors
before the Financial Industry Regulatory Authority.
Vernon Healy's investigation was featured in AARP magazine in an
article about the dangers of investing in so-called structured
products, which have been increasingly sold by brokerage firms to
retirees in recent years as safe investments.
UBS provided misleading and fraudulent marketing and training
material to its own sales force of financial advisors who were
encouraged to push sales of Lehman structured products to main
street investors, the claim states. Behind the scenes, UBS was
propping up the financially faltering Lehman with loans and
charging Lehman high interest rates, a situation that demonstrated
Lehman's desperation and poor credit worthiness, the claims
assert.
"As a creditor of Lehman, UBS was in a unique position to assess
Lehman's increasing financial difficulties. However, despite its
knowledge of Lehman's financial situation, UBS failed to warn its
financial advisors or its clients of the increasing risk posed by
Lehman structured products," a claim today filed by Vernon Healy
on behalf of an investor states.
Vernon Healy is seeking significant punitive damages on behalf of
investors in light of UBS' gross malfeasance, the claim states.
UBS made lucrative profits on its predatory lending strategy to a
desperate Lehman at a time when it was making enormous profits on
fees and commissions by deceptively selling mom-and-pop investors.
UBS told these investors that as a worst case scenario their
principal investment would be protected, the claims state.
The securities attorneys at Vernon Healy represent individuals and
businesses in disputes involving all manner of financial fraud and
negligence including related to structured products, non-traded
REITs, hedge funds, fund of funds, bonds, mutual funds, annuities,
tax shelters and other products.
About Lehman Brothers
Lehman Brothers Holdings Inc. -- http://www.lehman.com/-- was
the fourth largest investment bank in the United States. For
more than 150 years, Lehman Brothers has been a leader in the
global financial markets by serving the financial needs of
corporations, governmental units, institutional clients and
individuals worldwide.
Lehman Brothers filed for Chapter 11 bankruptcy Sept. 15, 2008
(Bankr. S.D.N.Y. Case No. 08-13555). Lehman's bankruptcy
petition disclosed US$639 billion in assets and US$613 billion in
debts, effectively making the firm's bankruptcy filing the
largest in U.S. history. Several other affiliates followed
thereafter.
Additional units, Merit LLC, LB Somerset LLC and LB Preferred
Somerset LLC, sought for bankruptcy protection in December 2009
or more than a year after LBHI and its other affiliates filed
their bankruptcy cases.
The Debtors' bankruptcy cases are handled by Judge James M. Peck.
Harvey R. Miller, Esq., Richard P. Krasnow, Esq., Lori R. Fife,
Esq., Shai Y. Waisman, Esq., and Jacqueline Marcus, Esq., at
Weil, Gotshal & Manges, LLP, in New York, represent Lehman. Epiq
Bankruptcy Solutions serves as claims and noticing agent.
Dennis F. Dunne, Esq., Evan Fleck, Esq., and Dennis O'Donnell,
Esq., at Milbank, Tweed, Hadley & McCloy LLP, in New York, serve
as counsel to the Official Committee of Unsecured Creditors.
Houlihan Lokey Howard & Zukin Capital, Inc., is the Committee's
investment banker.
On Sept. 19, 2008, the Honorable Gerard E. Lynch of the U.S.
District Court for the Southern District of New York, entered an
order commencing liquidation of Lehman Brothers, Inc., pursuant
to the provisions of the Securities Investor Protection Act (Case
No. 08-CIV-8119 (GEL)). James W. Giddens has been appointed as
trustee for the SIPA liquidation of the business of LBI.
The Bankruptcy Court has approved Barclays Bank Plc's purchase
of Lehman Brothers' North American investment banking and
capital markets operations and supporting infrastructure for
US$1.75 billion. Nomura Holdings Inc., the largest brokerage
house in Japan, purchased LBHI's operations in Europe for US$2
plus the retention of most of employees. Nomura also bought
Lehman's operations in the Asia Pacific for US$225 million.
International Operations Collapse
Lehman Brothers International (Europe), the principal UK trading
company in the Lehman group, was placed into administration,
together with Lehman Brothers Ltd, LB Holdings PLC and LB UK RE
Holdings Ltd. Tony Lomas, Steven Pearson, Dan Schwarzmann and
Mike Jervis, partners at PricewaterhouseCoopers LLP, have been
appointed as joint administrators to Lehman Brothers
International (Europe) on Sept. 15, 2008. The joint
administrators have been appointed to wind down the business.
Lehman Brothers Japan Inc. and Lehman Brothers Holdings Japan
Inc. filed for bankruptcy in the Tokyo District Court on
Sept. 16. Lehman Brothers Japan Inc. reported about JPY3.4
trillion (US$33 billion) in liabilities in its petition.
Bankruptcy Creditors' Service, Inc., publishes Lehman Brothers
Bankruptcy News. The newsletter tracks the Chapter 11 proceeding
undertaken by Lehman Brothers Holdings, Inc., and other
insolvency and bankruptcy proceedings undertaken by its
affiliates. (http://bankrupt.com/newsstand/or 215/945-7000)
LENNY DYKSTRA: Court Denies TRO Request Over Twitter Account
------------------------------------------------------------
Megan Leonhardt at Bankruptcy Law360 reports that a California
judge refused Monday to issue a restraining order against a man
who ran Lenny Dykstra's Twitter account, saying the ex-baseball
player -- who is facing bankruptcy fraud charges -- didn't present
enough evidence to warrant the order for himself and his family.
"You allowed him [defendant Dan Herman] to manage your Twitter
account," Los Angeles Superior Court Judge Carol Boas Goodson
said, advising Mr. Dykstra to "close it down or clarify any false
statements," according to Law360.
About Lenny Dykstra
Lenny Dykstra is a former Major League Baseball all-star player.
He was center fielder for the New York Mets and Philadelphia
Phillies. He filed for Chapter 11 bankruptcy protection (Bankr.
C.D. Calif. Case No. 09-18409) on July 7, 2009, in Woodland Hills,
California. The Law Office of M. Jonathan Hayes, in Northridge,
California, represents the Debtor. The Debtor estimated up to
$50,000 in assets and $10 million to $50 million in debts in his
Chapter 11 petition.
A Chapter 11 trustee was appointed in September 2009, and the case
was converted to a liquidation in Chapter 7 on November 20, 2009.
The trustee -- Arturo M. Cisneros -- was investigating the
disposition of personal property both before and after the Chapter
11 filing.
In August 2010, Mr. Cisneros stepped down as Chapter 7 trustee
following issues with his failing to disclose the extent of his
business with J.P. Morgan Chase & Co., which happens to be largest
creditor in Mr. Dykstra's case.
LIN TELEVISION: Moody's Assigns Ba3 Rating to Proposed Term Loan
----------------------------------------------------------------
Moody's Investor Services assigned Ba3, LGD3 -- 31% ratings to LIN
Television Corporation's ("LIN") proposed incremental $260 million
1st Lien Senior Secured Term Loan B and existing $75 Million 1st
Lien Senior Secured Revolver and $125 Million 1st Lien Senior
Secured Term Loan A. In addition, Moody's downgraded the $200
million 8.375% Senior Unsecured Notes to Caa1, LGD5 -- 85% from
B3, LGD4 - 58%. The incremental $260 million 1st Lien Term Loan B
will be used to redeem the remaining 6.5% sr subordinated notes
($252 million outstanding). Moody's affirmed LIN's B2 Corporate
Family Rating (CFR) and Probability of Default Rating (PDR). The
Speculative Grade Liquidity (SGL) Rating was also affirmed at SGL
-- 2 and the rating outlook is stable.
Assigned:
Issuer: LIN Television Corporation
-- Incremental $260 Million 1st Lien Senior Secured Term Loan B
(matures in 7 years): Assigned Ba3, LGD3 -- 31%
-- Existing $75 Million 1st Lien Senior Secured Revolver due
2016: Assigned Ba3, LGD3 -- 31%
-- Existing $125 Million 1st Lien Senior Secured Term Loan A
due 2017: Assigned Ba3, LGD3 -- 31%
Downgraded:
Issuer: LIN Television Corporation
-- 8.375% Sr Unsecured Notes due 2018: Downgraded to Caa1, LGD5
-- 85% from B3, LGD4 -- 58%
Affirmed:
Issuer: LIN Television Corporation
-- Corporate Family Rating: Affirmed B2
-- Probability of Default Rating: Affirmed B2
-- Speculative Grade Liquidity Rating: Affirmed SGL -- 2
Outlook Actions:
Issuer: LIN Television Corporation
-- Outlook is Stable
To be withdrawn upon close of the transaction
Issuer: LIN Television Corporation
-- 6.5% Million Sr Subordinated Notes due 2013: Caa1, LGD5 ?
83%
-- 6.5% Class B Sr Subordinated Notes due 2013: Caa1, LGD5 ?
83%
Recent Events
The proposed $260 Million Senior Secured 1st Lien Term Loan B is
an incremental facility under LIN's credit agreement which was put
in place when it raised the new $125 million Term Loan A in
October 2011. The Term Loan B is pari passu with the existing Term
Loan A which was used primarily to refinance a portion of the 6.5%
sr subordinated notes due 2013. Net proceeds from the proposed
Term Loan B facility will fund the take out of the remaining 6.5%
sr subordinated notes. In addition, on November 7, 2011, the
company announced a $25 million common stock repurchase program.
RATINGS RATIONALE
LIN's B2 Corporate Family Rating (CFR) reflects the company's
leading market positions and good free cash flow generated by its
geographically diversified portfolio of middle market broadcast
television stations, moderately high leverage, and overhang from
LIN TV Corp.'s guarantee of the NBC JV debt. The company's
strategic focus on duopoly operations in a majority of its markets
leads to high in-market revenue share and good margins. Ratings
incorporate expectations for higher retransmission revenues in
2012 followed by increased expenses related to reverse
compensation paid to the networks. Exposure to cyclical
advertising revenue and the ongoing risk of audience diffusion
resulting from media fragmentation weigh on the ratings. As of
September 30, 2011, LIN's two-year average debt-to-EBITDA ratio
was 5.5x (including Moody's standard adjustments, 5.3x for the
trailing 12 months) and Moody's expects LIN will utilize the vast
majority of its free cash flow to further reduce debt balances,
leading to improved capacity to fund an acquisition or dissolution
of the NBC JV within leverage parameters consistent with its B2
CFR. Liquidity is good with minimum two-year average free cash
flow of approximately $60 million (or 9% of debt balances) over
the rating horizon and extended maturities.
As noted previously, the NBC JV is a significant overhang that
poses elevated risk to the company's credit profile given the
decline in its asset value (as of December 2010, the NBC JV was
valued at $254 million less than amount due under the note,
improved from $366 million less as of December 2009) and shortfall
in meeting interest payments on its $815.5 million loan from
General Electric Capital Corporation. On January 28, 2011, Comcast
acquired 51% of NBCUniversal, Inc. with GE owning the remaining
49%. Additionally, LIN TV Corp. and GE agreed to fund interest
coverage shortfalls with loans based on LIN's ownership interests
(LIN 20% / GE 80%). Ratings hinge on Moody's expectation that LIN
will utilize free cash flow to reduce debt and leverage to
increase its capacity to finance an acquisition or other
dissolution of the NBC JV, particularly if it occurs prior to the
2023 GECC loan maturity. Under most scenarios, an acquisition or
dissolution of the NBC JV would be leveraging to LIN. The
company's capacity to fund a transaction without exceeding
leverage metrics expected in the B2 CFR (as would be the case if a
transaction occurred in the near term) increases the longer it can
forestall such an event, and could be reached in 2013/2014
assuming free cash flow continues to be applied to reduce debt
balances.
The CFR is affirmed at B2; however, as anticipated, the issuance
of the proposed Term Loan B senior secured credit facility to
refinance remaining 6.5% senior subordinated notes, will eliminate
the cushion provided by junior debt and results in the downgrade
of the $200 million senior unsecured notes to Caa1, LGD5 -- 85%
reflecting their effective subordination to LIN's increased 1st
lien senior secured credit facilities. The rating is two notches
below the CFR, and reflects weak recovery prospects in a default
scenario.
The stable rating outlook reflects Moody's expectations that the
company will maintain good liquidity, the two-year average debt-
to-EBITDA ratios (includes political and non-political years) will
remain below 5.75x over the rating horizon, and the company will
have capacity to fund any debt service shortfalls of the NBC JV
over the next 12-24 months. Moody's believes LIN will utilize its
free cash flow to repay debt and further reduce leverage creating
flexibility to complete a transaction that would resolve the
overhang from the guarantee of the NBC JV in advance of the GECC
loan maturity in 2023.
An advertising downturn, cash distributions to shareholders,
acquisitions or purchase/dissolution of the NBC JV that results in
the two-year average debt-to-EBITDA ratios being sustained above
6.25x (including Moody's standard adjustments) could lead to a
downgrade. Deterioration in liquidity including diminished
capacity to cover debt service shortfalls at the NBC JV (that
increases near term risk of a purchase/dissolution of the JV) or
other cash requirements could also result in a downgrade. An
upgrade is not likely until there is a clear path to resolution of
the overhang related to the NBC JV.
LIN Television Corporation, headquartered in Providence, RI, owns
and operates or programs 32 television stations, including two
stations under local marketing agreements and four stations
pursuant to shared services agreements, in 17 mid-sized markets in
the United States. In addition, LIN TV Corp., the company's
parent, owns 20% of KXAS-TV in Dallas, Texas and KNSD-TV in San
Diego, California, through a joint venture with NBCUniversal
Media, LLC (NBC JV). HM Capital Partners LLC ("HMC") holds an
approximate 42% economic interest in LIN and approximately 70% of
voting control is held by HMC and Mr. Royal Carson III, a LIN
director and advisor for HMC. Through the 12 months ended
September 30, 2011, the company generated revenue of approximately
$423 million (excluding NBC JV revenue, which is accounted for
under the equity method).
The principal methodology used in rating LIN Television Corp was
the Global Broadcast Industry Methodology published in June 2008.
Other methodologies used include Loss Given Default for
Speculative-Grade Non-Financial Companies in the U.S., Canada and
EMEA published in June 2009.
LIN TV: S&P Affirms 'B' Corporate Rating After New Loan
-------------------------------------------------------
Standard & Poor's Ratings Services affirmed its 'B' corporate
credit rating on Providence, R.I.-based TV broadcaster LIN TV
Corp. The rating outlook is stable.
"At the same time, we assigned guaranteed subsidiary LIN
Television Corp.'s proposed $260 million tranche B term loan
maturing December 2018 an issue-level rating of 'BB-' (two notches
higher than the 'B' corporate credit rating on LIN TV)," said
Standard & Poor's credit analyst Deborah Kinzer. The recovery
rating on this debt is '1', indicating our expectation of very
high (90% to 100%) recovery for lenders in the event of a payment
default.
"In addition, we revised our recovery rating on LIN Television
Corp.'s 8.375% senior notes to '6' from '2'. The '6' recovery
rating indicates our expectation of negligible (0 to 10%) recovery
for noteholders in the event of a payment default. As per our
notching criteria for a '6' recovery rating, we lowered our issue-
level rating on this debt to 'CCC+' (two notches lower than the
'B' corporate credit rating on the parent company) from 'B+'. The
revision of the recovery rating on the notes reflects their lower
recovery prospects after the higher-ranking credit facilities are
added to the company's capital structure," S&P said.
"The company plans to use proceeds from its new term loan B to
redeem the remainder of its 6.5% senior subordinated notes. We
will withdraw our 'CCC+' issue-level and '6' recovery rating on
the subordinated notes after the redemption is complete," S&P
said.
"The corporate credit rating affirmation reflects our view that
the proposed transaction is essentially leverage-neutral and will
slightly improve LIN's lease-adjusted EBITDA coverage of interest
by replacing higher-coupon debt with lower-cost bank borrowings.
Our rating and stable outlook on LIN reflect our expectation that
the company's fully adjusted debt to EBITDA (including leases,
pensions, and contingent joint-venture obligations) will rise
above 10x for full-year 2011 as the benefit of 2010 political
advertising revenue rolls off (although this ratio will remain
below the extremely high levels of 2009). We believe leverage will
then drop in mid 2012 as political ad revenue increases. We also
predicate our rating on no significant change in LIN and General
Electric Co.'s (GE's) support of the Station Venture Holdings LLC
joint venture through shortfall funding as long as is necessary.
The rating further reflects our view of LIN's business risk
profile as 'fair' (as our criteria define the term), based on its
portfolio of TV stations in midsize markets with an EBITDA margin
comparable to its peers'. In addition, we view the company's
financial risk profile as 'highly leveraged,' with fully adjusted
debt to EBITDA of 8.8x as of Sept. 30, 2011 (according to our
financial risk indicative ratios, we associate debt to EBITDA of
greater than 5x with a 'highly leveraged' financial risk
profile)," S&P said.
LIQUIDMETAL TECHNOLOGIES: Choi Kim Resigns as Accountants
---------------------------------------------------------
Choi, Kim, Park, LLP, resigned as the independent registered
accounting firm of Liquidmetal Technologies, Inc., on Dec. 7,
2011. The decision to accept CKP's resignation was approved by
the audit committee of the Company's board of directors.
CKP's reports on the consolidated financial statements of the
Company for the years ended Dec. 31, 2010, and 2009, did not
contain any adverse opinion or disclaimer of opinion, nor were
those reports qualified or modified as to uncertainty, audit
scope, or accounting principles, except that each of CKP's reports
for the years ended Dec. 31, 2010, and 2009, expressly assumed the
Company would continue as a going concern and stated that the
Company's significant operating losses and working capital deficit
raise substantial doubt about its ability to continue as a going
concern.
During the years ended Dec. 31, 2010, and 2009, and through
Dec. 7, 2011, there were no disagreements with CKP on any matter
of accounting principles or practices, financial statement
disclosure, or auditing scope or procedure, which disagreements,
if not resolved to the satisfaction of CKP, would have caused CKP
to make reference to the subject matter of the disagreement in its
report on the consolidated financial statements for such year.
During the years ended Dec. 31, 2010, and 2009, and through
Dec. 7, 2011, there were no reportable events.
On Dec. 2, 2011, the Board, upon recommendation of the Audit
Committee, approved the engagement of SingerLewak LLP to serve as
the Company's independent registered accounting firm. SingerLewak
LLP was formally engaged by the Company on Dec. 8, 2011.
During the years ended Dec. 31, 2010, and 2009, and through
Dec. 8, 2011, neither the Company nor anyone on its behalf has
consulted with SingerLewak LLP with respect to either (i) the
application of accounting principles to a specified transaction,
either completed or proposed, or the type of audit opinion that
might be rendered on the Company's consolidated financial
statements, and neither written nor oral advice was provided to
the Company that SingerLewak LLP concluded was an important factor
considered by the Company in reaching a decision as to any
accounting, auditing or financial reporting issue; or (ii) any
matter that was either the subject of disagreement with CKP or a
reportable event.
On Dec. 2, 2011, the Company held its adjourned 2011 annual
meeting of stockholders.
At the annual meeting, holders of the Company's Common Stock
elected Abdi Mahamedi and Mark Hansen as Common Directors, holders
of the Company's Series A Preferred Stock elected Ricardo Salas
and Scott Gillis as Series A Directors and holders of the
Company's Common Stock and Series A Preferred Stock elected Thomas
Steipp as General Director, each to serve until the Company's 2012
annual meeting of stockholders or until their respective
successors are duly elected and qualified.
About Liquidmetal Technologies
Based in Rancho Santa Margarita, Calif., Liquidmetal Technologies,
Inc. and its subsidiaries are in the business of developing,
manufacturing, and marketing products made from amorphous alloys.
Liquidmetal Technologies markets and sells Liquidmetal(R) alloy
industrial coatings and also manufactures, markets and sells
products and components from bulk Liquidmetal alloys that can be
incorporated into the finished goods of its customers across a
variety of industries. The Company also partners with third-
party licensees and distributors to develop and commercialize
Liquidmetal alloy products.
The Company classifies operations into two reportable segments:
Liquidmetal alloy industrial coatings and bulk Liquidmetal alloys.
Choi, Kim & Park LLP, in Los Angeles, Calif., expressed
substantial doubt about the Company's ability to continue as a
going concern, following the 2010 financial results. The Company
has experienced losses from continuing operations during the last
three fiscal years and has an accumulated deficit of $165,879 as
of Dec. 31, 2010. Net cash provided by continuing operations for
the year ended Dec. 31, 2010 was $10,080. At Dec. 31, 2010,
working capital deficit was $14,180. As of Dec. 31, 2010, the
Company's principal source of liquidity is $5,049 of cash and
$1,731 of trade accounts receivable.
The Company's restated statement of operations reflects a net loss
of $4.69 million on $30.27 million of revenue for the year ended
Dec. 31, 2010, compared with net income of $251,000 on $16.94
million of revenue during the prior year.
The Company's balance sheet at Sept. 30, 2011, showed $10.50
million in total assets, $25.72 million in total liabilities and a
$15.22 million total shareholders' deficiency.
LPATH INC: Files Form S-1 Registration Statement
------------------------------------------------
LPath, Inc., filed with the U.S. Securities and Exchange
Commission a Form S-1 registration statement relating to the
Company's offering of an unspecified number of units, with each
Unit consisting of one share of the Company's common stock and a
warrant to purchase an unspecified shares of the Company's common
stock.
Units will not be issued or certificated. The shares of common
stock and the warrants are immediately separable and will be
issued separately, but will be purchased together in this
offering.
The Company's Class A common stock is traded on the OTC Bulletin
Board under the symbol "LPTN." On Dec. 2, 2011, the closing sale
price of the Company's Class A common stock on the OTC Bulletin
Board was $1.13 per share.
A full-text copy of the Form S-1 prospectus is available at:
http://is.gd/XI7j8L
About Lpath, Inc.
San Diego, Calif.-based Lpath, Inc. is a biotechnology company
focused on the discovery and development of lipidomic-based
therapeutics, an emerging field of medical science whereby
bioactive lipids are targeted to treat human diseases.
The Company reported a net loss of $4.60 million on $7.83 million
of total revenues for the year ended Dec. 31, 2010, compared with
net income of $3.98 million on $11.91 million of total revenues
during the prior year.
As reported by the TCR on March 28, 2011, Moss Adams LLP, in San
Diego, Calif., expressed substantial doubt about the Company's
ability to continue as a going concern after auditing the
Company's financial statements at the end of 2009. The
independent auditors noted that the Company had incurred
significant cash losses from operations since inception and
expects to continue to incur cash losses from operations in 2010
and beyond. In its audit report for 2010, the auditor did not
issue a going concern qualification.
The Company's balance sheet at June 30, 2011, showed $21.30
million in total assets, $18.14 million in total liabilities and
$3.15 million in total stockholders' equity.
MAGUIRE GROUP: Court OKs Berger Singerman, PA as Counsel
--------------------------------------------------------
Maguire Group Holdings, Inc., along with affiliates, sought and
obtained permission from the U.S. Bankruptcy Court for the
Southern District of Florida to employ James D. Gassenheimer and
the Law Firm of Berger Singerman, P.A. as counsel
Maguire Group Holdings, Inc., along with affiliates, sought
Chapter 11 proteoction (Bankr. S.D. Fla. Case No. 11-39347) on
Oct. 24, 2011. Attorneys at Berger Singerman, P.A., serve as
Kurtzman Carson Consultants LLC is the claims and notice agent.
Rasky Baerlein Strategic Communications, Inc., is the
communications consultant.
MAGUIRE GROUP: U.S. Trustee Unable to Form Committee
----------------------------------------------------
The United States Trustee said until further notice, it will not
appoint an official committee under 11 U.S.C. Sec. 1102 in the
bankruptcy case of Maguire Group Holdings, Inc., along with
affiliates.
The U.S. Trustee reserves the right to appoint such a committee
should interest developed among the creditors.
Maguire Group Holdings, Inc., along with affiliates, sought
Chapter 11 proteoction (Bankr. S.D. Fla. Case No. 11-39347) on
Oct. 24, 2011. Attorneys at Berger Singerman, P.A., serve as
Kurtzman Carson Consultants LLC is the claims and notice agent.
Rasky Baerlein Strategic Communications, Inc., is the
communications consultant.
MANISTIQUE PAPERS: May Complete Reorganization by March 2012
------------------------------------------------------------
Daily Press reports that Manistique Papers Inc. has entered its
final phase of financial reorganization with the mill operating
near full capacity. According to the report, the actual process
began in the final week of November, and is expected to be
completed by March 2012. By reorganizing, MPI would be able to
enter into the process of selling the mill to a new equity holder
with an appropriate debt structure.
As reported by the Troubled Company Reporter, Manistique Papers
filed pleadings on Nov. 21 setting up sale procedures leading to
an auction on Feb. 13. No buyer is yet under contract. If the
bankruptcy court in Delaware agrees with procedure at a Dec. 13
hearing, bids would be due initially by Feb. 8. The company will
retain the ability to name a stalking horse bidder if a buyer
steps up before hand willing to sign an acceptable contract.
mBank, which purchased the Debtor's secured loan from the prior
lender and is providing $5 million in additional financing, has
the right to bid at auction using secured debt rather than cash.
About Manistique Papers
Manistique Papers Inc. operates a landfill in Manistique,
Michigan, whereby residuals resulting from paper production are
deposited. It owns a 125,000 ton-a-year plant making specialty
papers from recycled fiber.
Manistique Papers filed for Chapter 11 bankruptcy protection
(Bankr. D. Del. Case No. 11-12562) on Aug. 12, 2011. Godfrey &
Kahn, S.C. represents the Debtor in its restructuring effort.
Morris, Nichols, Arsht & Tunnell LLP serves as its Delaware
bankruptcy co-counsel. Vector Consulting, L.L.C., serves as its
financial advisor. Baker Tilly Virchow Krause, LLC, serves as its
accountant.
The Official Committee of Unsecured Creditors appointed in the
Chapter 11 cases of Manistique Papers is represented by Lowenstein
Sandler PC as lead counsel and Ashby & Geddes, P.A., as Delaware
counsel. J.H. Cohn LLC serves as the panel's financial advisor.
Manistique Papers disclosed $19,688,471 in assets and $24,633,664
in liabilities as of the Chapter 11 filing.
MARPECH INVESTMENT: Voluntary Chapter 11 Case Summary
-----------------------------------------------------
Debtor: Marpech Investment Group, L.C.
3124 Colvin Street
Alexandria, VA 22314
Bankruptcy Case No.: 11-18670
Chapter 11 Petition Date: December 5, 2011
Court: United States Bankruptcy Court
Eastern District of Virginia (Alexandria)
Judge: Brian F. Kenney
Debtor's Counsel: John W. Bevis, Esq.
JOHN W. BEVIS, P.C.
10521 Judicial Drive
Suite #204
Fairfax, VA 22030
Tel: (703) 691-1334
Fax: (703) 385-4353
E-mail: johnbevis@bevislawoffices.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $500,001 to $1,000,000
The Debtor did not file a list of its largest unsecured creditors
together with its petition.
The petition was signed by Mark Jones, manager.
MASTER SILICON: Lin Han to Resign as Chief Financial Officer
------------------------------------------------------------
The Board of Directors of Master Silicon Carbide Industries, Inc.,
was informed by Mr. Lin Han that he desired to resign from his
position as the Chief Financial Officer of the Company to pursue
other interests. Mr. Han's resignation was not a result of any
disagreement with the Company on any matter relating to the
Company's operations, policies or practices.
About Master Silicon
Lakeville, Conn.-based Master Silicon Carbide Industries, Inc.,
through its indirectly wholly-owned operating subsidiary Yili
China, produces and sells in China high quality "green" silicon
carbide and lower-quality "black" silicon carbide (together,
hereinafter referred to as "SiC"). SiC is a non-metallic
compound that has special chemical properties and a level of
hardness that is similar to diamonds, is produced by smelting
quartz sand and refinery coke at temperatures ranging from
approximately 1,600 to 2,500 degrees centigrade in a graphite
electric resistance furnace.
The Company also reported a net loss of US$1.48 million on
US$12.36 million of revenue for the nine months ended Sept. 30,
2011, compared with net profit of US$35,914 on US$6.94 million of
revenue for the same period a year ago.
The Company's balance sheet at Sept. 30, 2011, showed
US$30.40 million in total assets, US$12.04 million in total
liabilities, US$10 million in redeemable preferred stock-A, US$10
million in redeemable preferred stock-B, and a US$1.64 million
total stockholders' deficit.
As reported by the TCR on April 7, 2011, Child, Van Wagoner &
Bradshaw, PLLC, in Salt Lake City, expressed substantial doubt
about the Company's ability to continue as a going concern. The
independent auditors noted that the Company has cash flow
constraints, an accumulated deficit, and has suffered recurring
losses from operations.
MC2 CAPITAL: Sec. 341 Creditors' Meeting Set for Jan. 6
-------------------------------------------------------
The Office of the U.S. Trustee for the Northern District of
California in San Francisco, California, will hold a First Meeting
of Creditors in the bankruptcy case of MC2 Capital Partners, LLC,
pursuant to Sec. 341(a) of the Bankruptcy Code on Jan. 6, 2012, at
1:30 p.m. at Santa Rosa U.S. Trustee Office.
Proofs of claim are due April 5, 2012.
MC2 Capital Partners, LLC, based in San Rafael, California, filed
for Chapter 11 bankruptcy (Bankr. N.D. Calif. Case No. 11-14366)
on Dec. 1, 2011. Judge Alan Jaroslovsky presides over the case.
John H. MacConaghy, Esq. -- macclaw@macbarlaw.com -- at MacConaghy
and Barnier, PLC, presides over the case. In its petition, the
Debtor estimated $10 million to $50 million in assets and $50
million to $100 million in debts.
The Debtor's Manager is Monahan Pacific Corporation. Thomas
Monahan -- an officer and director of Monahan Pacific Corporation
and the holder of 95% of the LLC equity interests in the Debtor --
signed the petition. He has been appointed as responsible
individual for the Debtor.
MEDIA GENERAL: Timothy Mulvaney to Assume CAO Role
--------------------------------------------------
As announced previously, Stephen Y. Dickinson, vice president and
chief accounting officer, will retire effective Dec. 31, 2011.
Timothy J. Mulvaney will become Controller and Chief Accounting
Officer effective Jan. 1, 2012. Mr. Mulvaney is currently the
Company's Controller and has been since 2009. He was Assistant
Controller from 2005 - 2009.
About Media General
Richmond, Virginia-based Media General Inc. (NYSE: MEG) --
http://www.mediageneral.com/-- is an independent communications
company with interests in newspapers, television stations and
interactive media in the United States. The Company operates in
three business segments: Publishing, Broadcast and Interactive
Media. The Company owns 25 daily newspapers and more than 150
other publications, as well as 23 television stations. The
Company also operates more than 75 online enterprises. In March
2008, the Company completed the purchase of DealTaker.com, an
online social shopping portal.
The Company reported a net loss of $71.01 million on $448.47
million of total revenues for the nine months ended Sept. 25,
2011, compared with a net loss of $31.68 million on $488.23
million of total revenues for the nine months ended Sept. 26,
2010.
The Company's balance sheet at Sept. 25, 2011, showed
$1.08 billion in total assets, $985.24 million in total
liabilities, and $97.30 million in total stockholders' equity.
* * *
As reported by the Troubled Company Reporter on October 5, 2011,
Moody's Investors Service downgraded Media General, Inc.'s (Media
General) Corporate Family Rating (CFR) and senior secured bond
rating to B3 from B2, and lowered the company's speculative-grade
liquidity rating to SGL-4 from SGL-3. The rating actions reflect
the liquidity pressure from the approaching March 2013 credit
facility maturity and heightened risk of a covenant violation, as
well as the operating pressure from a weaker advertising market.
The rating outlook is negative.
The TCR also reported on Oct. 28, 2011, that Standard & Poor's
Ratings Services lowered its corporate credit on Richmond, Va.-
headquartered Media General Inc. to 'CCC+' from 'B-'. "The
downgrade reflects our expectation that Media General could face
difficulties in maintaining covenant compliance in 2012," S&P
said.
MEDLINK INTERNATIONAL: Signs Forbearance Pact with Investors
------------------------------------------------------------
MedLink International, Inc., and several institutional investors
entered into a Subscription Agreement, pursuant to which Investors
purchased from the Company a senior secured convertible debenture
in the principal amount of $1,250,000 with an original issue
discount of 10% to the principal amount. The Debenture bears
interest at a rate of 10% per annum and is convertible into shares
of the Company's class A common stock at any time commencing nine
months from the date of the Debenture at a conversion price of
$0.83 per shares, subject to adjustment. The Debenture is due and
payable on May 26, 2012. In connection therewith, the Company
also issued: (i) an aggregate of 753,012 Class A.1 Warrants, and
(ii) an aggregate of 753,012 Class A.2 Warrants, to the Investors.
On Nov. 29, 2011, the Company entered into a Forbearance Agreement
with Investors holding an aggregate of $1,250,000 of the
$1,250,000 previously issued to the Investors. Pursuant to the
terms of the Forbearance Agreement, the Company has acknowledged
that certain "Events of Default" as defined in the Debenture and
the security agreement entered into by and between the Company and
the Investors, have occurred. In connection with the Investors
agreement to forebear from enforcing their rights and remedies,
the Company has agreed to the amendments and modifications to the
transaction documents entered into by and between the Company and
the Investors on Nov. 26, 2010.
A full-text copy of the Form 8-K is available for free at:
http://is.gd/0kiVOO
About Medlink
Ronkonkoma, New York-based MedLink International, Inc. (OTC BB:
MLKNA) -- http://www.medlinkus.com/-- is a leading healthcare
information technology company focused on clinical, information
and connectivity solutions that are focused on improving the
quality and efficiency of care.
MERCANTILE BANCORP: Suspending Filing of Reports with SEC
---------------------------------------------------------
Mercantile Bancorp, Inc., filed a Form 15 notifying of its
suspension of its duty under Section 15(d) to file reports
required by Section 13(a) of the Securities Exchange Act of 1934
with respect to its common stock. Pursuant to Rule 12h-3, the
Company is suspending reporting because there are currently less
than 300 holders of record of the common shares. There were only
205 holders of the common shares as of Dec. 8, 2011.
About Mercantile Bancorp
Mercantile Bancorp -- http://www.mercbanx.com/-- is a Quincy,
Illinois-based bank holding company with wholly owned subsidiaries
consisting of one bank in Illinois and one each in Kansas and
Florida, where the Company conducts full-service commercial and
consumer banking business, engages in mortgage banking, trust
services and asset management, and provides other financial
services and products. The Company also operates Mercantile Bank
branch offices in Missouri and Indiana.
On Aug. 10, 2011, the Illinois Division of Banking released a
Consent Order that Mercantile Bank, the Federal Deposit Insurance
Corporation, and the Division entered into as of July 28, 2011.
Under the Order, Mercantile Bank will cease operating with all
money transmitters and currency businesses providing brokerage,
sale or exchange of non-United States currency for deposit
customers. Furthermore, Mercantile Bank may not enter into a new
line of business without the prior written consent of the FDIC and
the Division.
The Company also reported a net loss of $11.25 million on
$27.28 million of total interest and dividend income for the nine
months ended Sept. 30, 2011, compared with a net loss of
$30.68 million on $34.13 million of total interest and dividend
income for the same period a year ago.
The Company's balance sheet at Sept. 30, 2011, showed
$868.26 million in total assets, $885.67 million in total
liabilities, and a $17.41 million total stockholders' deficit.
As reported in the TCR on April 26, 2011, BKD, LLP, in Decatur,
Illinois, expressed substantial doubt about Mercantile Bancorp's
ability to continue as a going concern, following the Company's
2010 results. The independent auditors noted that the Company has
suffered recurring losses resulting from the effects of the
economic downturn causing its subsidiary banks to be
undercapitalized and resulting in consent orders to be issued by
their primary regulators.
METAL FOUNDATIONS: Shaner Capital Buys Firm Out Bankruptcy
----------------------------------------------------------
Shaner Capital, LP has acquired Metal Foundations out of
bankruptcy. The company is part of Gary Reinert Sr.'s group of
companies that filed for Chapter 11 protection from creditors in
the United States Bankruptcy Court for the Western District of
Pennsylvania.
"Metal Foundations is a unique and specialized patented product
that has a history of success, profitability, and is poised for
immediate growth. Our extensive patent portfolio and other
intellectual property provide us with unique capabilities to
pursue our chosen markets."
Metal Foundations has been providing a cost effective and profit
generating alternative to the traditional concrete foundation for
over 20 years with its most notable project being a $100 million
initiative in Securing the Southwest Border for the Department of
Homeland Security. Metal Foundations is uniquely positioned to
serve the alternative energy (solar and wind), border fence, power
distribution, civil project, airport, highway and road markets.
According to the Chief Operating Officer of Shaner Capital and CEO
of Metal Foundations, LLC, Geoffrey Feidelberg, "Metal Foundations
is a unique and specialized patented product that has a history of
success, profitability, and is poised for immediate growth. Our
extensive patent portfolio and other intellectual property provide
us with unique capabilities to pursue our chosen markets."
Shaner Capital LP is a private investment fund formed by Lance T.
Shaner, CEO of the Shaner Group. The objective of Shaner Capital
is to assist well run, innovative companies to grow and expand
their businesses. Shaner Capital holds controlling interests in
numerous operating companies.
Shaner Capital and the Shaner Family of Companies -- http://
shanercorp.com/ -- are comprised of diverse and financially strong
organizations with over 2,500 associates globally.
About Metal Foundations
Metal Foundations, LLC -- www.metalfoundations.com/ -- is a wholly
owned subsidiary of Shaner Capital, LP and is based in Pittsburgh,
PA. It provides a safe, fast, efficient and effective alternative
to a concrete foundation utilizing a patented design and
installation procedure that allows the installation of foundation
and structure to occur within the same day.
About Gary Reinert
Gary Reinert Sr. filed a Chapter 11 petition (Bankr. W.D. Pa. Case
No. 11-22840) on May 2, 2011, estimating debts and assets between
$10 million and $50 million. His unsecured creditors include Ed
Dunlap, a Pittsburgh businessman and Damon's franchisee who is
owed nearly $1.2 million, according to court filings.
Companies owned by Mr. Reinert -- Wildwood, Pennsylvania-based
Power Contracting, Inc., aka Max & Erma's Restaurant, Inc., and
five affiliated companies -- also filed for Chapter 11 protection
(Bankr. W.D. Penn. Case No. Case Nos. 11- 22841 to 11-22846) on
May 2, 2011. Calaiaro & Corbett, P.C. represents the Debtors in
their restructuring efforts. Power Contracting estimated assets
and debts at $10 million to $50 million.
MF GLOBAL: R.J. O'Brien CEO Corcoran Testifies
----------------------------------------------
The U.S. House Committee on Agriculture is convening a hearing on
the Examination of the MF Global Bankruptcy. Gerald F. Corcoran,
Chairman and Chief Executive Officer of R.J. O'Brien & Associates
(RJO), offered testimony on behalf of the Commodity Markets
Council (CMC) and RJO. He put forth ideas for consideration and
discussion on possible improvements to the futures industry's
financial safeguard system.
Mr. Corcoran emphasized in his testimony that trust in the system
has been "severely impaired" and that it is in the best interest
of the industry and its customers for quick, but thoughtful action
to restore that confidence. He said: "...while the investigation
continues into the causes of the MF Global bankruptcy and the
whereabouts of segregated assets, I am certain, very certain of
this: we CANNOT let this event destroy the long-term trust and
confidence upon which market participants rely. This is an
industry that is vitally important not only to the interests of
the agricultural community, but to the world."
Speaking on behalf of RJO and CMC, Mr. Corcoran offered ideas on
improving the industry's customer collateral management process by
ensuring the adequate maintenance of customer collateral levels.
He said: "While this point does not directly relate to the MF
Global situation, it is worth considering in the context of the
financial stability of FCMs. Significant losses by a customer of
an FCM can also result in catastrophic losses to the FCM
itself....An idea we offer for deliberation is to require accounts
which exceed certain margin thresholds on an intra-day basis to
fund their account through direct wire transfer, thereby ensuring
intra-day margin calls are met."
He also suggested ways to improve the FCM's net capital treatment,
including evaluating the "double counting" of funds to satisfy
capital requirements by entities dually registered as FCMs and
broker-dealers.
In addition, RJO and CMC suggested a possible modification that
would place a portion of an FCM's funds in a customer-segregated
funds account designated for capital protection. Said Corcoran:
"By requiring an FCM to place its capital in a customer-segregated
funds account, funds will then also be afforded the protections
that Commodity Futures Trading Commission (CFTC) Rule 1.25, as
amended, would provide."
Mr. Corcoran also urged regulators to look at enhancing monitoring
and reporting requirements with respect to FCM customer
segregation practices. FCMs are already required to prepare
customer segregation reports on a daily basis but do not share
them with regulators that often. He suggested that regulatory
agencies can require the submission of these daily reports to the
CFTC, National Futures Association or other Designated Self-
Regulatory Organization (DSRO).
Mr. Corcoran put forth a proposal, speaking solely on behalf of
RJO, in which all futures commission merchants (FCMs) would adopt
the same "agency" only model as RJO, which does not engage in
proprietary trading. Mr. Corcoran said: "Although proprietary
trading by FCMs may contribute to the liquidity of the futures
markets, it should not be at the expense of customer protection.
Therefore, we at RJO suggest that those FCMs who want to conduct
proprietary trading utilize other FCMs or create a separately
capitalized special purpose FCM for this activity. Doing so will
require the same oversight afforded to customer accounts,
including proper margining at all times. Simply put, an FCM that
is restricted from trading for its own account would not place its
customers at risk due to losses from proprietary trading."
Describing the impact of MF Global's bankruptcy filing and default
on RJO, Corcoran said that the firm worked closely with CME Group
and other domestic exchanges to provide a home for a substantial
number of MF Global accounts and brokers: "In a matter of a few
days, we assumed a bulk transfer of 20,000 accounts without
incident, and our shareholders provided an infusion of
approximately $50 million of capital to ensure that we would be
sufficiently capitalized for this unexpected event. At the same
time, we worked very hard to ensure that our long-standing clients
continued to receive the outstanding service to which they are
accustomed. Our management and staff worked literally around the
clock for 25 days straight in a massive effort that involved
coordination of systems, processes and people, and sometimes
working with incomplete data and rapidly changing circumstances.
We fully recognized that the clients of MF Global had just
experienced a traumatic event, and we did everything we could to
provide vehicles for addressing their questions and providing
reassurances as soon as we had answers."
Headquartered in Chicago, RJO is the nation's oldest and largest
independent futures brokerage and clearing firm. RJO is a member
of Washington-based CMC, a trade association which brings together
commodity exchanges with their industry counterparts.
About R.J. O'Brien
Founded in 1914, RJO is the largest independent futures brokerage
firm in the United States. The firm offers state-of-the-art
electronic trading technology and 24-hour trade execution on every
futures exchange worldwide. Clearing more than 100,000 client
accounts, RJO services a global network of more than 400
introducing brokers and many of the world's largest financial,
industrial and agricultural institutions.
About MF Global
New York-based MF Global (NYSE: MF) -- http://www.mfglobal.com/
-- is one of the world's leading brokers of commodities and
listed derivatives. MF Global provides access to more than 70
exchanges around the world. The firm is also one of 22 primary
dealers authorized to trade U.S. government securities with the
Federal Reserve Bank of New York. MF Global's roots go back
nearly 230 years to a sugar brokerage on the banks of the Thames
River in London.
MF Global Holdings Ltd. and MF Global Finance USA Inc. filed
voluntary Chapter 11 petitions (Bankr. S.D.N.Y. Case Nos. 11-
15059 and 11-5058) on Oct. 31, 2011, after a planned sale to
Interactive Brokers Group collapsed. As of Sept. 30, 2011, MF
Global had $41,046,594,000 in total assets and $39,683,915,000 in
total liabilities. It is easily the largest bankruptcy filing so
far this year.
Judge Honorable Martin Glenn presides over the Chapter 11 case.
J. Gregory Milmoe, Esq., Kenneth S. Ziman, Esq., and J. Eric
Ivester, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, serve
as bankruptcy counsel. The Garden City Group, Inc., serves as
claims and noticing agent. The petition was signed by Bradley I.
Abelow, Executive Vice President and Chief Executive Officer of
MF Global Finance USA Inc.
The Securities Investor Protection Corporation commenced
liquidation proceedings against MF Global Inc. to protect
customers. James W. Giddens was appointed as trustee pursuant to
the Securities Investor Protection Act. He is a partner at
Hughes Hubbard & Reed LLP in New York.
Jon Corzine, the former New Jersey governor and co-CEO of
Goldman Sachs Group Inc., stepped down as chairman and chief
executive officer of MF Global just days after the bankruptcy
filing.
U.S. regulators are investigating about $633 million missing from
MF Global customer accounts, a person briefed on the matter said
Nov. 3, according to Bloomberg News.
Bankruptcy Creditors' Service, Inc., publishes MF GLOBAL
BANKRUPTCY NEWS. The newsletter tracks the Chapter 11 proceeding
undertaken by MF Global Holdings and other insolvency and
bankruptcy proceedings undertaken by its affiliates.
(http://bankrupt.com/newsstand/or 215/945-7000)
MF GLOBAL: CME Group's Duffy Appears Before House Committee
-----------------------------------------------------------
CME Group disclosed that Executive Chairman Terry Duffy appeared
before the U.S. House Committee on Agriculture Dec. 8 to discuss
the MF Global bankruptcy.
"MF Global put market users in a tragic position," said Duffy. "In
the days leading up to MF Global's bankruptcy, daily reviews of
the company's segregation reports showed the firm remained in full
compliance with segregation requirements. Any transfers of
customer funds, effectuated by MF Global, constitute very serious
violations of our rules and of CFTC regulations."
"With respect to the unprecedented loss of customer segregated
funds caused by MF Global, CME Group's efforts have been to assist
customers and minimize market disruptions," Duffy added. "Our
efforts have been directed toward speeding customer access to
their trading accounts, transferring their positions and providing
the Trustee with a $550 million guarantee from CME Group, to
enable him to quickly release customer funds that were securely
held at CME Clearing. Moving forward, we intend to work with the
Congress, regulators and industry leaders to strengthen customer
safeguards at the firm level."
About MF Global
New York-based MF Global (NYSE: MF) -- http://www.mfglobal.com/
-- is one of the world's leading brokers of commodities and
listed derivatives. MF Global provides access to more than 70
exchanges around the world. The firm is also one of 22 primary
dealers authorized to trade U.S. government securities with the
Federal Reserve Bank of New York. MF Global's roots go back
nearly 230 years to a sugar brokerage on the banks of the Thames
River in London.
MF Global Holdings Ltd. and MF Global Finance USA Inc. filed
voluntary Chapter 11 petitions (Bankr. S.D.N.Y. Case Nos. 11-
15059 and 11-5058) on Oct. 31, 2011, after a planned sale to
Interactive Brokers Group collapsed. As of Sept. 30, 2011, MF
Global had $41,046,594,000 in total assets and $39,683,915,000 in
total liabilities. It is easily the largest bankruptcy filing so
far this year.
Judge Honorable Martin Glenn presides over the Chapter 11 case.
J. Gregory Milmoe, Esq., Kenneth S. Ziman, Esq., and J. Eric
Ivester, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, serve
as bankruptcy counsel. The Garden City Group, Inc., serves as
claims and noticing agent. The petition was signed by Bradley I.
Abelow, Executive Vice President and Chief Executive Officer of
MF Global Finance USA Inc.
The Securities Investor Protection Corporation commenced
liquidation proceedings against MF Global Inc. to protect
customers. James W. Giddens was appointed as trustee pursuant to
the Securities Investor Protection Act. He is a partner at
Hughes Hubbard & Reed LLP in New York.
Jon Corzine, the former New Jersey governor and co-CEO of
Goldman Sachs Group Inc., stepped down as chairman and chief
executive officer of MF Global just days after the bankruptcy
filing.
U.S. regulators are investigating about $633 million missing from
MF Global customer accounts, a person briefed on the matter said
Nov. 3, according to Bloomberg News.
Bankruptcy Creditors' Service, Inc., publishes MF GLOBAL
BANKRUPTCY NEWS. The newsletter tracks the Chapter 11 proceeding
undertaken by MF Global Holdings and other insolvency and
bankruptcy proceedings undertaken by its affiliates.
(http://bankrupt.com/newsstand/or 215/945-7000).
MIDWEST GAMING: S&P Puts 'B' Corp. Rating on Watch Positive
-----------------------------------------------------------
Standard & Poor's Ratings Services placed its 'B' corporate credit
rating on Des Plaines, Ill.-based Midwest Gaming Borrower LLC, as
well as all related issue-level ratings, on CreditWatch with
positive implications.
"The CreditWatch listing reflects the strong opening of the Rivers
casino in July 2011, followed by solid performance in the
subsequent months; since its opening, Rivers' slot machine revenue
metrics and average daily win per table have widely surpassed
those of its closest competitors," said Standard & Poor's credit
analyst Jennifer Pepper. "While the track record remains short,
in our view, this has allayed the risk associated with the
property's ability to generate sufficient cash flow to cover fixed
charges. In the event the property can sustain its initial win-
per-unit measures, we expect Midwest will generate sufficient free
cash flow to allow for meaningful repayment of the term loan,
given an excess cash flow sweep provision. Under this scenario,
credit metrics would be consistent with a higher rating, as
interest coverage would likely be well above 2x and leverage
around 3x after a full year of operations," S&P said.
"In resolving the CreditWatch listing, we will update our
performance expectations for 2012 and beyond based on the
property's performance in its initial months and determine whether
a higher rating is warranted. We believe a potential upgrade would
likely be limited to one notch, given the company's business risk
profile characterized by lack of diversity as an operator of a
single casino property as well as the potential for increased
competition in the Chicagoland market, given the ongoing dialogue
around an expansion of gaming in Illinois," S&P said.
MINE RECLAMATION: Taps Sharon Z. Weiss as Non-Resident Attorney
---------------------------------------------------------------
Mine Reclamation, LLC, asks the U.S. Bankruptcy Court for the
Central District of California for permission to employ:
Sharon Z. Weiss, Esq.
HOLME ROBERTS & OWEN LLP
800 West Olympic Blvd., 4th Floor
Los Angeles, CA 90015
Tel: (213) 572-4300
E-mail: sharon.weiss@hro.com
as non-resident counsel with whom the Court and opposing counsel
may readily communicated regarding the conduct of the case, and
upon whom papers may be served.
About Mine Reclamation, LLC
Mine Reclamation, LLC, filed for Chapter 11 bankruptcy (Bankr.
C.D. Calif. Case No. 11-43596) on Oct. 30, 2011, estimating
$50 million to $100 million in assets. Judge Scott C. Clarkson
presides over the case. Natalie C Boyajian, Esq., and Sharon Z.
Weiss, Esq. -- natalie.boyajian@hro.com and sharon.weiss@hro.com
-- at Holme Roberts & Owen LLP, served as the Debtors' counsel.
MONMOUTH PLANTATION: Files for Chapter 11 Bankruptcy Protection
---------------------------------------------------------------
Natchezdemocrat.com reports that Monmouth Plantation filed for
Chapter 11 bankruptcy on Dec. 2, 2011, to avoid the foreclosure of
Monmouth that was scheduled for Dec. 7.
According to the report, Monmouth co-owner Ron Riches said the
downturn of the economy hit Monmouth hard, just as it has
businesses across the country. "We got caught up in the same
crisis everyone else has during the recession," the report quotes
Mr. Riches said. "We probably borrowed too much money, but the
FDIC really clamped down on the banks."
MONTANA ELECTRIC: Lee A. Freeman Approved as Chapter 11 Trustee
---------------------------------------------------------------
The U.S. Bankruptcy Court for the District of Montana approved the
appointment of Lee A. Freeman as Chapter trustee in the Bankruptcy
Case of Southern Montana Electric Generation and Transmission
Cooperative, Inc.
The trustee is expected to:
-- perform the duties specified in Section 1106(a) of the
Bankruptcy Code;
-- file and serve on the U.S. Trustee monthly financial
reports pursuant to applicable Local Bankruptcy Rules and the
United States Trustee Guidelines; and
-- pay statutory fees owing to the United States Trustee;
-- obtain bonding in an amount and form sufficient to meet the
U.S. Trustees bonding requirements for a Chapter 11 Trustee;
and
-- use estate funds for the purpose of paying the bond premium.
To the best of Acting U.S. Trustee Robert D. Miller Jr.'s
knowledge, Mr. Freeman is a "disinterested person" as that term is
defined in Section 101(14) of the Bankruptcy Code.
The U.S. Trustee is represented by:
Daniel P. McKay, Esq.
Office of the United States Trustee
Liberty Center, Suite 204
301 Central Avenue
Great Falls, MT 59401
Tel: (406) 761-8777
Fax: (406) 761-8895
E-mail: dan.p.mckay@usdoj.gov
About Southern Montana Electric
Based in Billings, Montana, Southern Montana Electric Generation
And Transmission Cooperative, Inc., was formed to serve five
other electric cooperatives. The city of Great Falls later joined
as the sixth member. Including the city, the co-op serves a
population of 122,000. In addition to Great Falls, the service
area includes suburbs of Billings, Montana.
Southern Montana filed for Chapter 11 bankruptcy (Bankr. D.
Mont. Case No. 11-62031) on Oct. 21, 2011. Southern Montana
estimated assets of $100 million to $500 million and estimated
debts of $100 million to $500 million. Timothy Gregori signed the
petition as general manager.
Jon E. Doak, Esq., at Doak & Associates, P.C., in Billings,
Montana, serves as the Debtor's counsel.
Standard & Poor's Ratings Services in October lowered its issuer
credit rating on SME to 'CC' from 'BBB', and placed the rating on
CreditWatch with developing implications. These actions follow
the cooperative's Oct. 21 bankruptcy filing under Chapter 11 of
the U.S. Bankruptcy Code. According to SME, the filing was in
response to failure on the part of some of its members to honor
contractual obligations, including payment to the cooperative for
services.
MONTANA ELECTRIC: U.S. Trustee Forms Creditors Committee
--------------------------------------------------------
Robert D. Miller, the United States Trustee for Region 18,
pursuant to 11 U.S.C. Sec. 1102(a) and (b), amended the list of
unsecured creditors to serve on the Official Committee of
Unsecured Creditors of Southern Montana Electric Generation and
Transmission Cooperative, Inc.
The Creditors Committee members are:
1. PPL EnergyPlus, LLC
2 North Ninth Street
Allentown, PA 18101
2. NorthWestern Energy
40 E. Broadway St.
Butte, MT 59701-9394
3. LS Jensen Construction
4685 Mullan Road
Missoula, MT 59808
4. Stanley Consultants
8000 S. Chester St.
Centennial, CO 80112
5. Electrical Consultants, Inc.
3521 Gabel Road, Ste. 2
Billings, MT 59102
About Southern Montana Electric
Based in Billings, Montana, Southern Montana Electric Generation
And Transmission Cooperative, Inc., was formed to serve five
other electric cooperatives. The city of Great Falls later joined
as the sixth member. Including the city, the co-op serves a
population of 122,000. In addition to Great Falls, the service
area includes suburbs of Billings, Montana.
Southern Montana filed for Chapter 11 bankruptcy (Bankr. D.
Mont. Case No. 11-62031) on Oct. 21, 2011. Southern Montana
estimated assets of $100 million to $500 million and estimated
debts of $100 million to $500 million. Timothy Gregori signed the
petition as general manager.
Jon E. Doak, Esq., at Doak & Associates, P.C., in Billings,
Montana, serves as the Debtor's counsel.
Standard & Poor's Ratings Services in October lowered its issuer
credit rating on SME to 'CC' from 'BBB', and placed the rating on
CreditWatch with developing implications. These actions follow
the cooperative's Oct. 21 bankruptcy filing under Chapter 11 of
the U.S. Bankruptcy Code. According to SME, the filing was in
response to failure on the part of some of its members to honor
contractual obligations, including payment to the cooperative for
services.
MUSCLEPHARM CORP: TSX Agrees to Buy 42-Mil. Shares for $375,000
---------------------------------------------------------------
MusclePharm Corporation, on Dec. 2, 2011, entered into a Stock
Purchase Agreement with TSX Holdings, LLC. Pursuant to the terms
of the Agreement, TSX agreed to purchase 42,000,000 shares of the
Company's common stock for a total purchase price of $375,000.
The Company is relying on an exemption from the registration
requirements of the Securities Act of 1933, as amended, for the
sale and issuance of our shares of common stock under the
Agreement pursuant to Section 4(2) of the Act or Rule 506 of
Regulation D promulgated thereunder. The transaction did not
involve a public offering, TSX is an "accredited investor" or
qualified institutional buyer and TSX has access to information
about the Company and its investment.
A full-text copy of the Stock Purchase Agreement is available at:
http://is.gd/Sa2iZs
About MusclePharm
Headquartered in Denver, Colorado, MusclePharm Corporation
(OTC BB: MSLP) -- http://www.muslepharm.com/-- is a healthy life-
style company that develops and manufactures a full line of
National Science Foundation approved nutritional supplements that
are 100% free of banned substances. MusclePharm is sold in over
120 countries and available in over 5,000 U.S. retail outlets,
including GNC and Vitamin Shoppe. MusclePharm products are also
sold in over 100 online stores, including bodybuilding.com,
Amazon.com and Vitacost.com.
Berman & Company, P.A., in Boca Raton, Florida, expressed
substantial doubt about MusclePharm's ability to continue as a
going concern, following the Company's 2010 results. The
independent auditors noted that the Company had a net loss of
$19.6 million and net cash used in operations of $3.8 million for
the the year ended Dec. 31, 2010; and a working capital deficit
and stockholders' deficit of $2.8 million and $1.7 million,
respectively, at Dec. 31, 2010.
The Company also reported a net loss of $12.33 million on
$13.07 million of sales for the nine months ended Sept. 30, 2011,
compared with a net loss of $8.67 million on $3.13 million of
sales for the same period a year ago.
The Company's balance sheet at Sept. 30, 2011, showed
$5.71 million in total assets, $10.86 million in total
liabilities, and a $5.14 million total stockholders' deficit.
NAVISTAR INTERNATIONAL: Navistar Financial Renews Bank Facility
---------------------------------------------------------------
Navistar Financial Corporation, an affiliate of Navistar
International Corporation, has successfully refinanced its bank
credit facility with a five-year revolving credit line and term
loan totaling $840 million. Earlier this quarter, NFC
successfully sold $224 million of wholesale floor plan notes.
"This deal, in combination with our recently completed wholesale
financing, ensures sufficient liquidity to support the sale of
Navistar products," said David Johanneson, president and chief
executive officer of NFC. "Our ability to continue to access
competitive financing reflects the confidence of banks and other
investors in Navistar's strategy."
About Navistar International
Navistar International Corporation (NYSE: NAV) --
http://www.Navistar.com/-- is a holding company whose
subsidiaries and affiliates subsidiaries produce International(R)
brand commercial and military trucks, MaxxForce(R) brand diesel
engines, IC Bus(TM) brand school and commercial buses, Monaco RV
brands of recreational vehicles, and Workhorse(R) brand chassis
for motor homes and step vans. It also is a private-label
designer and manufacturer of diesel engines for the pickup truck,
van and SUV markets. The company also provides truck and diesel
engine parts and service. Another affiliate offers financing
services.
The Company's balance sheet at July 31, 2011, showed $11.17
billion in total assets, $10.42 billion in total liabilities, $5
million in redeemable equity securities and $752 million in total
stockholders' equity.
* * *
Navistar has a 'BB-/Stable/--' corporate credit rating from
Standard & Poor's and a 'B1' Corporate Family Rating and
Probability of Default Rating from Moody's Investors Service.
Moody's said in October 2010 that Navistar's B1 rating could
improve if the North American truck market remains on track for a
sustained recovery into 2011, and Navistar's operational
initiatives to moderate its vulnerability to the truck cycle show
evidence of taking hold.
NAVISTAR INTERNATIONAL: Icahn OKs Possible Merger with Oshkosh
--------------------------------------------------------------
Carl C. Icahn stated during a telephone interview on CNBC on
Dec. 6, 2011, in response to a question regarding the fact that he
owns stock of both the Navistar International Corporation and
Oshkosh Corporation, that he and his affiliates believe there may
be significant synergies between Navistar and Oshkosh and that
shareholders of both companies could benefit from these synergies.
Icahn said he and his affiliates would be supportive of a merger.
About Navistar International
Navistar International Corporation (NYSE: NAV) --
http://www.Navistar.com/-- is a holding company whose
subsidiaries and affiliates subsidiaries produce International(R)
brand commercial and military trucks, MaxxForce(R) brand diesel
engines, IC Bus(TM) brand school and commercial buses, Monaco RV
brands of recreational vehicles, and Workhorse(R) brand chassis
for motor homes and step vans. It also is a private-label
designer and manufacturer of diesel engines for the pickup truck,
van and SUV markets. The company also provides truck and diesel
engine parts and service. Another affiliate offers financing
services.
The Company's balance sheet at July 31, 2011, showed $11.17
billion in total assets, $10.42 billion in total liabilities, $5
million in redeemable equity securities and $752 million in total
stockholders' equity.
* * *
Navistar has a 'BB-/Stable/--' corporate credit rating from
Standard & Poor's and a 'B1' Corporate Family Rating and
Probability of Default Rating from Moody's Investors Service.
Moody's said in October 2010 that Navistar's B1 rating could
improve if the North American truck market remains on track for a
sustained recovery into 2011, and Navistar's operational
initiatives to moderate its vulnerability to the truck cycle show
evidence of taking hold.
NEONODE INC: Selling 4 Million Common Shares at $4.00 Apiece
------------------------------------------------------------
Neonode Inc. announced the pricing of a $16.0 million underwritten
public offering of 4,000,000 shares of its common stock, of which
3,000,000 shares are being offered by Neonode and 1,000,000 shares
are being offered by Per Bystedt, its executive chairman, and
Thomas Eriksson, its chief executive officer. The shares will be
offered at a price to the public of $4.00 per share. The net
proceeds to Neonode from this offering are expected to be
approximately $11.2 million, after deducting the underwriting
discount but before deducting other estimated offering expenses
payable by Neonode. The selling stockholders have granted the
underwriters a 30-day option to purchase, at the public offering
price, up to an aggregate of 600,000 additional shares of its
common stock to cover overallotments, if any. Neonode will not
receive any proceeds from the sale of any shares by the selling
stockholders or upon the exercise by the underwriter of its over-
allotment option. The offering is expected to close on or about
Dec. 13, 2011, subject to customary closing conditions. Neonode
anticipates using the net proceeds from the offering primarily for
general corporate purposes, including capital expenditures and
working capital.
Cowen and Company, LLC, is acting as underwriter and sole book-
running manager for the offering. GP Bullhound Ltd. is acting as
financial advisor for the offering.
The securities are being offered by Neonode pursuant to a shelf
registration statement previously filed with the Securities and
Exchange Commission, which the SEC declared effective on Nov. 16,
2011. A final prospectus supplement related to the offering will
be filed with the SEC and will be available on the SEC's Web site
located at http://www.sec.gov. Copies of the final prospectus
supplement and the accompanying prospectus relating to this
offering, when available, may be obtained from Cowen and Company,
LLC (c/o Broadridge Financial Services, 1155 Long Island Avenue,
Edgewood, NY, 11717, Attn: Prospectus Department, Phone: 631-274-
2806, Fax: 631-254-7140).
About Neonode Inc.
Lafayette, Calif.-based Neonode Inc. (OTC BB: NEON)
-- http://www.neonode.com/-- provides optical touch screen
solutions for hand-held and small to midsize devices.
The Company's balance sheet at Sept. 30, 2011, showed $5.0 million
in total assets, $10.9 million in total liabilities, and a
stockholders' deficit of $5.9 million.
KMJ Corbin & Company, LLP, in Costa Mesa, Calif., expressed
substantial doubt about Neonode's ability to continue as a going
concern, following the Company results for the fiscal year ended
Dec. 31, 2010. The independent auditors noted that the Company
has incurred significant operating losses and has used substantial
amounts of working capital in its operations since inception, and
at Dec. 31, 2010, has a working capital deficit of $9.9 million
and an accumulated deficit of $112.2 million.
NEVADA CANCER: Judge Expedites Plan to Sell Asset in January
------------------------------------------------------------
Steve Green at Vegas Inc. reports that U.S. Bankruptcy Judge Mike
Nakagawa in Las Vegas has set hearings for Jan. 11 and 12, 2012,
on Nevada Cancer Institute's plan to be sold to the University of
California, San Diego Health System.
According to the report, Judge Nakagawa also approved generally
routine "first day" motions allowing the institute to pay its 150
employees, maintain existing bank accounts and make arrangements
with utilities for uninterrupted service.
The report relates that one issue that wasn't routine in the
bankruptcy was whether Judge Nakagawa should appoint a health care
ombudsman to ensure the interests of patients aren't jeopardized
by the institute's financial problems.
The report adds that Judge Nakagawa's rulings on Dec. 6, 2011, set
in place a procedure in which key Cancer Institute assets are to
be sold to the UC San Diego system for $18 million and the Cancer
Institute has agreed to raise $20.8 million over five years to
support the continued philanthropic mission of the center under UC
San Diego's ownership.
Nevada-based Nevada Cancer Institute was co-founded by husband and
wife Jim and Heather Murren. Jim Murren is chief executive of MGM
Resorts International.
NEW LIFE: Meeting to Form Creditors' Panel on Dec. 15
-----------------------------------------------------
Roberta DeAngelis, United States Trustee for Region 3, will hold
an organizational meeting on Dec. 15, 2011, at 10:00 a.m. in the
bankruptcy case of New Life Adult Medical Day Care Center, Inc.
aka New Life Adult Medical Day Care Corp. The meeting will be
held at:
United States Trustee's Office
One Newark Center
1085 Raymond Blvd.
21st Floor, Room 2106
Newark, NJ 07102
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.
New Life Adult Medical Day Care Center, Inc. filed a Chapter 11
petition (Bankr. D. N.J. {d} Case No. 11-43510) on Nov. 21, 2011
in Newmark, New Jersey, Adam D. Wolper, Esq., Amanda M. Graham,
Esq., Richard D. Trenk, Esq., at West Orange, New Jersey, serves
as counsel to the Debtor. The Debtor estimated up to $1,000,000
in assets and up to $10,000,000 in liabilities.
The petition was signed by Robert DeMane, chairman of board of
directors.
NEWPAGE CORP: Court Asked to Reconsider Denial of Panel Hirings
---------------------------------------------------------------
BankruptcyData.com reports that NewPage's official committee of
unsecured creditors filed with the U.S. Bankruptcy Court a motion
for reconsideration of the order denying the committee's retention
of Moelis & Company as investment banker and Alvarez & Marsal
North America as financial advisor.
The committee asserts, "The Court should reconsider the Orders
pursuant to Bankruptcy Rules 9023 and 9024 for two reasons. First,
the Orders, and in particular the Court's conclusion that only
approval of the Completion Fees at the end of the case is
appropriate, constitute clear legal error. Second, evidence not
available at the November 9 Hearing has now become available --
specifically, the Committee is now able to present testimony that
(a) Moelis will not provide investment banking services to the
Committee, or expert testimony on behalf of the Committee, if (i)
Moelis's Completion Fee is not approved at this initial stage and
(ii) any of Moelis's fees are subject to section 330 review by any
party other than the Office of the United States Trustee at the
end of the case, and (b) the Committee will be hindered in the
performance of its fiduciary duties to unsecured creditors by the
loss of its professionals of choice."
The Court scheduled a Dec. 13, 2011, hearing on the matter.
NewPage Corp. objected to the committee's retention saying
unsecured creditors are "hopelessly out of the money" with any
prospect for recovery "beyond remote."
About NewPage Corp.
Headquartered in Miamisburg, Ohio, NewPage Corporation was 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 Dec. 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 roughly 4.1 million tons of
paper, including roughly 2.9 million tons of coated paper, roughly
1.0 million tons of uncoated paper and roughly 200,000 tons of
specialty paper.
NewPage, 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.
At an organizational meeting of creditors held on Sept. 21, 2011,
the Committee selected Paul Hastings LLP as its bankruptcy
counsel and Young Conaway Stargatt & Taylor, LLP to act as its
Delaware and conflicts counsel.
NewPage 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.
NEXSTAR BROADCASTING: Names Rick Rogala as SVP of Sales
-------------------------------------------------------
Nexstar Broadcasting Group, Inc., announced that Rick Rogala has
been named Senior Vice President of Sales, a new position at the
company. Mr. Rogala's appointment highlights Nexstar's commitment
to enhance the customer experience and foster positive
relationships with clients and advertising partners across its on-
air and digital platforms while supporting the Company's goals for
growth. The appointment is effective immediately, and Mr. Rogala
will report to Timothy Busch, Co-Chief Operating Officer of
Nexstar Broadcasting.
Since 2009 Rogala served as Senior Vice President and Regional
Manager at Nexstar with oversight of operations in eleven markets.
These responsibilities will be assumed by Timothy Busch and Brian
Jones, Nexstar's Co-Chief Operating Officers. In his new role,
Mr. Rogala will develop and implement new sales strategies and
analytics to optimize the value of Nexstar's on-air and online
inventory and will work across the Nexstar organization with the
Company's managers, sales force and e-Media teams to administer
policies and procedures to further enhance the effectiveness of
the Company?s sales operations.
Mr. Rogala returned to Nexstar as a Senior Vice President and
Regional Manager in 2009 after a two year role as Vice President
and General Manager of Media General's WCMH-TV in Columbus, Ohio.
Mr. Rogala first joined Nexstar in 2005 as Vice President/General
Manager of KARK-TV where he led the station in restoring its
market leading position and established a strong local brand.
Through his efforts and initiatives, KARK elevated its news
programming and service to local advertisers which led to
increased local revenue. Mr. Rogala began his career in the
television broadcast industry in 1982 and held broadcast
management positions in Ohio, Indiana, Michigan and Florida prior
to joining Nexstar.
Timothy Busch commented on the appointment, "Nexstar consistently
leads the industry in revenue and new to television revenue growth
and we recently marked the ninth consecutive quarter of year-over-
year growth. The creation of this new position squarely
highlights our advertiser-centric focus as well as our goals for
continued near- and long-term growth in our advertising supported
revenue channels."
"Rick brings to his new position a deep understanding of industry
dynamics, Nexstar's strengths and a proven record of forging
strong relationships between our staff, clients, advertisers, and
the local communities where we operate. With his extensive
broadcast knowledge, leadership, and industry experience we are
confident in his ability to develop and implement effective new
sales strategies and new accounts. We look forward to his
contributions in his new role as we continue to deliver the most
effective advertising solutions for clients and high quality local
news, information and entertainment programming for viewers in our
markets."
Mr. Rogala added, "Nexstar's commitment to local community viewers
and advertisers is recognized throughout the broadcasting industry
and I intend to extend that distinction in my new position. In
this role, I will leverage the management experience and
relationships built over my career to generate results and further
strengthen Nexstar's position as a leading provider of effective
advertising solutions. I look forward to working with the sales
team to develop new strategies while building on our already
impressive record of client service excellence."
Rick Rogala earned a BS in Communications from Ohio University in
1982 and was recognized with an American Women in Radio and
Television (AWRT) award for "Excellence in Management" and a GEM
award for "Nurturing Women in Leadership" from The Association for
Women in Communications - Cincinnati chapter.
NORTHCORE TECHNOLOGIES: Supports GE Capital United Way Campaign
---------------------------------------------------------------
Northcore Technologies Inc. has once again supported the GE
Capital Fleet Services United Way Campaign with its technology.
Northcore provided its award winning commerce engine-Asset Seller-
to enable GE Capital Fleet Services employees in the United States
to bid on nearly 145 items.
Northcore Technologies is an ongoing supporter of the GE Capital
Fleet Services United Way Campaign, having provided auction
technology and support for several previous events. The money
raised by this charity auction will be used by local United Way
chapters to support a host of non-profit organizations and
services in dozens of communities throughout North America.
"We are happy to have worked with our partners at General Electric
in support of the United Way, a cause that the entire team
believes in," said Amit Monga, CEO of Northcore Technologies.
About Northcore
Toronto, Ontario-based Northcore Technologies Inc. (TSX: NTI; OTC
BB: NTLNF) -- http://www.northcore.com/-- provides a Working
Capital Engine(TM) that helps organizations source, manage,
appraise and sell their capital equipment. Northcore offers its
software solutions and support services to a growing number of
customers in a variety of sectors including financial services,
manufacturing, oil and gas and government.
Northcore owns 50% of GE Asset Manager, LLC, a joint business
venture with GE. Together, the companies work with leading
organizations around the world to help them liberate more capital
value from their assets.
The Company also reported a net loss and comprehensive loss of
C$3.27 million on C$573,000 of revenue for the nine months ended
Sept. 30, 2011, compared with a net loss and comprehensive loss of
C$2.35 million on C$406,000 of revenue for the same period a year
ago.
The Company's balance sheet at Sept. 30, 2011, showed
C$1.91 million in total assets, C$1.16 million in total
liabilities, and C$747,000 in total shareholders' equity.
Certain adverse conditions and events cast substantial doubt upon
the ability of the Company to continue as a going concern, the
Company said in the filing. "The Company has not yet realized
profitable operations and has relied on non-operational sources of
financing to fund operations."
NORTHERN BERKSHIRE: Bankruptcy Filing Cues Fitch to Drop LT Rating
------------------------------------------------------------------
Fitch Ratings withdraws the long-term rating on the series 2004A&B
revenue bonds issued by the Massachusetts Health and Educational
Facilities Authority on behalf of Northern Berkshire Health
Systems.
The rating withdrawal is based on the NBHS' filing for Chapter 11
bankruptcy protection on June 13, 2011. The 'D' rating indicates
that the borrower has initiated such proceedings.
About Northern Berkshire Healthcare
Northern Berkshire Healthcare, Inc. is a non-profit healthcare
corporation in northern Berkshire County, Massachusetts. Together
with its affiliates, Northern Berkshire Healthcare operates the
North Adams Regional Hospital and a visiting nurse association and
hospice in North Adams, Massachusetts.
Northern Berkshire Healthcare, Inc., North Adams Regional
Hospital, Inc., Visiting Nurse Association & Hospice of Northern
Berkshire, Inc., Northern Berkshire Healthcare Physicians Group,
Inc., and Northern Berkshire Realty, Inc., filed for Chapter 11
bankruptcy (Bankr. D. Mass. Case No. 11-31114) on June 13, 2011,
to address their overleveraged balance sheet and effect a
reorganization of their operations. On the same day, Northern
Berkshire Community Services, Inc., filed a petition for Chapter 7
relief also in the District of Massachusetts bankruptcy court.
Judge Henry J. Boroff presides over the Debtors' cases. Steven T.
Hoort, Esq., James A. Wright, III, Esq., Jonathan B. Lackow, Esq.,
and Matthew F. Burrows, Esq., at Ropes & Gray LLP, in Boston,
Mass., serve as the Debtors' bankruptcy counsel. The Debtors'
Financial Advisors are Carl Marks Advisory Group LLC. GCG Inc.
serves as claims and noticing agent.
Northern Berkshire disclosed $22,957,933 in assets and
$53,379,652 in liabilities as of the Chapter 11 filing. The
petition was signed by William F. Frado, Jr., president.
William K. Harrington, the U.S. Trustee for Region 1, appointed
five members to the official unsecured creditors' committee in the
Debtors' cases. The Committee tapped Duane Morris LLP as its
counsel.
NORTHAMPTON GENERATING: Defaults on $153 Million Senior Bonds
--------------------------------------------------------------
Fitch Ratings has downgraded the rating on Northampton Generating
Company, L.P.'s (Northampton) due 2019 to 'D' from 'C'. The $153
million senior tax-exempt series A resource recovery revenue bonds
were issued by the Pennsylvania Economic Development Financing
Authority in 1994 with the proceeds loaned to Northampton.
Northampton filed for Chapter 11 bankruptcy on Dec. 5, 2011, in
the U.S. Bankruptcy Court in the Western District of North
Carolina (Charlotte), case number 11-33095. In Fitch's Rating
Action Commentary published on Sept. 27, 2011, Fitch expected that
a payment default was likely within the following six months based
on Northampton's insufficient financial performance and the near-
depletion of the debt service reserve.
Northampton consists of a 112 megawatt (net) coal-fired qualifying
facility in Northampton County, PA, that supplies energy to
Metropolitan Edison Co. (Issuer Default Rating 'BBB' by Fitch)
under a long-term power purchase agreement. Northampton is
structured as a limited partnership and is owned by indirect
subsidiaries of Calypso Energy Holdings LLC, which is owned by
Cogentrix Energy, LLC and investment companies managed by EIF
Management, LLC.
NORTHAMPTON GENERATING: Case Summary & Creditors List
-----------------------------------------------------
Debtor: Northampton Generating Company, L.P.
9405 Arrowpoint Boulevard
Charlotte, NC 28273
Bankruptcy Case No.: 11-33095
Chapter 11 Petition Date: December 5, 2011
Court: U.S. Bankruptcy Court
Western District of North Carolina (Charlotte)
Judge: J. Craig Whitley
Debtor's Counsel: Hillary B. Crabtree, Esq.
MOORE & VAN ALLEN PLLC
100 N. Tryon Street, Suite 4700
Charlotte, NC 28202-4003
Tel: (704) 331-3571
Fax: (704) 335-5968
E-mail: hillarycrabtree@mvalaw.com
- and ?
Luis Manuel Lluberas, Esq.
MOORE & VAN ALLEN PLLC
100 N. Tryon Street, Suite 4700
Charlotte, NC 28202
Tel: (704) 331-3548
Fax: (704) 409-5675
E-mail: luislluberas@mvalaw.com
Debtor?s
Financial
Advisor: OULIHAN LOKEY CAPITAL, INC.
Estimated Assets: $100,000,001 to $500,000,000
Estimated Debts: $100,000,001 to $500,000,000
The petition was signed by Warren MacGillivray, president.
Debtor's List of Its 20 Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
------ --------------- ------------
Horwith Leasing Co Inc. Lease $1,180,720
P.O. Box 7
Route 329
Northampton, PA 18067
Savage Services Corp Trade Debt $855,050
P.O. Box 57908
Salt Lake City, UT 84157-0908
Meckleys Limestone Products Inc. Trade Debt $177,955
1543 State Route 225
Herndon, PA 17830
Jeddo Coal Co Trade Debt $93,451
Emanuel Tire of PA Inc. Trade Debt $74,474
Tanner Industries Inc. Trade Debt $37,500
Coaldale Energy LP Trade Debt $14,300
Mahantango Ent Inc. Trade Debt $12,372
Emanuel Tire Co. Trade Debt $9,200
Northampton Borough Municipal Trade Debt $8,022
Authority
Dryden Diving Company, Inc. Trade Debt $5,498
Horwith Trucks Inc. Trade Debt $4,742
Verizon Trade Debt $4,100
Beitzel Corporation Trade Debt $3,740
Susquehanna Recycling Inc. Trade Debt $3,597
Liberty Tire Services of Ohio LLC Trade Debt $2,000
PPL Electric Utilities Corp Trade Debt $1,935
Line Systems Inc. Trade Debt $1,241
Airgas Safety, Inc. Trade Debt $1,150
Fedex Trade Debt $790
NORTHLAKE STORAGE: Case Summary & 4 Largest Unsecured Creditors
---------------------------------------------------------------
Debtor: Northlake Storage, LLC
1989 Montreal Rd.
Tucker, GA 30084
Bankruptcy Case No.: 11-84959
Chapter 11 Petition Date: December 5, 2011
Court: United States Bankruptcy Court
Northern District of Georgia (Atlanta)
Debtor's Counsel: William Russell Patterson, Esq.
RAGSDALE BEALS SEIGLER PATTERSON & GRAY
Suite 2400, 229 Peachtree Street NE
Atlanta, GA 30303-1629
Tel: (404) 588-0500
E-mail: wrpjr@rbspg.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
A list of the Company's four largest unsecured creditors filed
together with the petition is available for free at
http://bankrupt.com/misc/ganb11-84959.pdf
The petition was signed by Mitchell F. Cooke, manager.
NORTHWEST PARTNERS: Wants to Use Berkadia Cash Collateral
---------------------------------------------------------
Northwest Partners will appear before the Bankruptcy Court Dec. 19
at 10:30 a.m., to seek permission to use revenues from its
apartment complex to fund operations while in Chapter 11.
The Debtor constructed the Property during 1997. The project was
completed in 1998. The project was financed by Nevada Housing
Division Bonds, guaranteed by the Federal National Mortgage
Association. Berkadia Commercial Mortgage LLC is the loan
servicer. The current outstanding balance of the mortgage is
$13,100,000.
Pending plan confirmation, the Debtor proposes to make adequate
protection payments to Berkadia equal to the monthly net income
derived from the property after payment of ongoing operating and
maintenance expenses.
The Debtor believes that Berkadia has sufficient collateral to
adequately protect its interest. To further protect Berkadia, the
Debtor proposes it will provide it with a replacement lien against
the Debtor's post-petition rents, with the replacement lien to
have the same extent, validity and priority as pre-petition liens
held by Berkadia.
Northwest Partners owns the 268-unit Austin Crest Apartment in
Northwest Reno, Nevada. It filed for Chapter 11 bankruptcy
(Bankr. D. Nev. Case No. 11-53528) on Nov. 17, 2011. Judge Bruce
T. Beesley oversees the case. The Law Offices of Alan R. Smith --
mail@asmithlaw.com -- serves as the Debtor's counsel.
The Debtor scheduled $13,513,361 in assets and $14,135,158 in
liabilities. The petition was signed by Robert F. Nielsen,
president of IDN I, the Debtor's general partner.
NORTHWEST PARTNERS: Taps Alan Smith Law Firm as Counsel
-------------------------------------------------------
Northwest Partners seeks Bankruptcy Court authority to employ the
Law Offices of Alan R. Smith -- mail@asmithlaw.com -- as its
attorneys. Northwest Partners said it is not sufficiently
familiar with the rights and duties of a debtor-in-possession as
to be able to plan and conduct proceedings without the aid of
competent counsel.
The firm will be paid at these hourly rates:
Alan R. Smith, Esq. $500
Contract Attorney $350
Peggy L. Turk $250
Other Paraprofessionals $75 - $115
The Contract Attorney normally used by the Debtor's counsel is
John J. Gezelin.
On Oct. 14, Shelter Properties Inc. paid the firm $60,000 as
advance retainer for the Debtor.
To the best of the Debtor's knowledge, the firm's members have no
connection with the Debtor, any of its creditors, any other party
in interest, their attorneys and accountants, the United States
Trustee, or any person employed in the Office of the United States
Trustee.
Northwest Partners owns the 268-unit Austin Crest Apartment in
Northwest Reno, Nevada. It filed for Chapter 11 bankruptcy
(Bankr. D. Nev. Case No. 11-53528) on Nov. 17, 2011. Judge Bruce
T. Beesley oversees the case. The Debtor scheduled $13,513,361 in
assets and $14,135,158 in liabilities. The petition was signed by
Robert F. Nielsen, president of IDN I, the Debtor's general
partner.
NORTHWEST PARTNERS: Sec. 341 Creditors' Meeting Set This Afternoon
------------------------------------------------------------------
The United States Trustee in Reno, Nevada, will convene a Meeting
of Creditors in the bankruptcy case of Northwest Partners pursuant
to Section 341 of the Bankruptcy Code today, Dec. 12, 2011, at
4:00 p.m. Young Bldg., Rm 3024. Proofs of claim are due in the
case by March 11, 2012.
Northwest Partners owns the 268-unit Austin Crest Apartment in
Northwest Reno, Nevada. It filed for Chapter 11 bankruptcy
(Bankr. D. Nev. Case No. 11-53528) on Nov. 17, 2011. Judge Bruce
T. Beesley oversees the case. The Law Offices of Alan R. Smith --
mail@asmithlaw.com -- serves as the Debtor's counsel.
The Debtor scheduled $13,513,361 in assets and $14,135,158 in
liabilities. The petition was signed by Robert F. Nielsen,
president of IDN I, the Debtor's general partner.
OPPENHEIMER PARTNERS: To File Full-Payment Plan, Seeks Cash Use
---------------------------------------------------------------
Oppenheimer Partners Properties LLP anticipates filing a plan of
reorganization that will pay creditors the full amount of their
allowed claims. The Debtor made this declaration in its request
to use cash collateral to finance operations while in bankruptcy.
Specifically, the Debtor seeks to use revenues from its
residential apartment complex. The Debtor said the revenues may
constitute cash collateral securing a promissory note to MidFirst
Bank.
Oppenheimer Partners Properties LLP owns and operates a 184-unit
residential apartment complex in Phoenix, Arizona. Oppenheimer
purchased the property in June 2007 for $12 million through a
combination of cash and a construction loan totaling $12.4
million.
The Debtor said the property has always created cash flow
sufficient to cover operations and service the debt. The Debtor's
principals have managed the property since the purchase.
The Debtor said a second modification agreement to the MidFirst
note extended the maturity of the note to June 1, 2011, and
included a borrower option for a one-year extension. The Debtor
said it exercised that option, making the current maturity date
June 1, 2012. The Debtor said it is current on its loan payment
to MidFirst. The bank, however, has declared the loan in default
due to alleged violations of the Second Loan Modification
Agreement.
The Debtor does not have an appraisal but believes the property
could be worth the amount of the debt.
Oppenheimer filed for Chapter 11 bankruptcy (Bankr. D. Ariz. Case
No. 11-33139) on Dec. 2, 2011. Judge Sarah Sharer Curley presides
over the case. Gordon Silver's Robert C. Warnicke, Esq. --
phxbknotices@gordonsilver.com -- serves as the Debtor's counsel.
In its petition, the Debtor estimated $10 million to $50 million
in assets and debts. The petition was signed by Eric Hamburger,
managing partner.
OPPENHEIMER PARTNERS: Sec. 341 Creditors' Meeting Set for Jan. 3
----------------------------------------------------------------
The Office of the U.S. Trustee in Phoenix, Arizona, will hold a
Meeting of Creditors pursuant to 11 U.S.C. Sec. 341 in the
bankruptcy case of Oppenheimer Partners Properties LLP on Jan. 3,
2012, at 1:00 p.m. at US Trustee Meeting Room, 230 N. First
Avenue, Suite 102, in Phoenix.
About Oppenheimer Partners
Oppenheimer Partners Properties LLP owns and operates a 184-unit
residential apartment complex in Phoenix, Arizona. Oppenheimer
purchased the property in June 2007 for $12 million through a
combination of cash and a construction loan totaling $12.4
million. Oppenheimer filed for Chapter 11 bankruptcy (Bankr. D.
Ariz. Case No. 11-33139) on Dec. 2, 2011. Judge Sarah Sharer
Curley presides over the case. Gordon Silver's Robert C.
Warnicke, Esq. -- phxbknotices@gordonsilver.com -- serves as the
Debtor's counsel. In its petition, the Debtor estimated $10
million to $50 million in assets and debts. The petition was
signed by Eric Hamburger, managing partner.
Oppenheimer anticipates filing a plan of reorganization that will
pay creditors the full amount of their allowed claims.
ORANGE COUNTY: S&P Lowers Rating on Housing Revenue Bonds to 'B+'
-----------------------------------------------------------------
Standard & Poor's Ratings Services lowered its long-term rating on
Orange County Housing Finance Authority, Fla.'s (Housing and
Neighborhood Development Services Inc. (HANDS)) multifamily
housing revenue bonds (Green Gables Apartments Project) series
1998C to 'B+' from 'BB-'. The outlook is negative.
The downgrade reflects S&P's view of these weaknesses of the
project:
Sharp declining trend in debt service coverage levels to 0.67
maximum annual debt service (MADS), based on audited financial
statements for the fiscal year ended 2010;
Receipt of advances from surplus funds held by HANDS to
fulfill its financial obligations in fiscal 2010;
High loan-to-value ratio; and
Decrease in rental revenues by almost 6% and increase in
expenses by 16%, leading to deterioration of the expense
ratio.
However, the weaknesses are partially offset, in S&P's view, by
these strengths of the project:
Debt service reserve fund funded at 12 months' MADS;
Improved occupancy rates at the project; and
Strong and experienced ownership and management by HANDS.
"The negative outlook reflects our view of the potential that
further deterioration in operating performance can occur" said
Standard & Poor's credit analyst Renee J. Berson.
Green Gables Apartments is a 95-unit affordable housing project
located in Orlando, Fla. The property was built in 1986 and was
renovated in 1999. The property consists of 21 efficiency, 64 one-
bedroom, and 10 three-bedroom/two-bath apartments.
OVERSEAS SHIPHOLDING: Moody's Lowers CFR to B3; Outlook Negative
----------------------------------------------------------------
Moody's Investors Service lowered its ratings of Overseas
Shipholding Group, Inc.; Corporate Family, Probability of Default,
each to B3 from B1, senior unsecured to Caa1 from B2 and
Speculative Grade Liquidity rating to SGL-3 from SGL-2. The
outlook is negative.
RATINGS RATIONALE
The lowering of the ratings reflects the company's sustained weak
credit metrics, which have remained at levels no longer supportive
of the B1 Corporate Family rating, because of continuing weak
fundamentals in the global tanker sector. "Moody's believes that
average annual tanker freight rates are not likely to meaningfully
strengthen above their 2011 levels in 2012 because it expects
growth in the world fleet to continue to outpace growth of ton-
mile demand, particularly for crude oil carriers," said Moody's
Senior Credit Officer, Jonathan Root. Moody's anticipates that
2012 will be another year of negative free cash flow generation
for the company, even though capital expenditures will be reduced
by about $180 million. These factors are likely to prevent the
company from strengthening its liquidity in the near term.
Additionally, the difficult market conditions will likely sustain
pressure on the values of internationally-flagged tankers at a
time when the company may need to monetize one or more vessels to
reduce utilization of its revolving credit facility prior to the
new, smaller revolver becoming effective in February 2013. The
planned refinancing of certain U.S.-flagged Jones Act vessels with
long-term financing under the U.S. Maritime Administration's Title
XI, government guaranteed loan program will help address a portion
of the anticipated funding needed.
The negative outlook considers that the sector's weak fundamentals
could challenge OSG to maintain compliance in the near term with
minimum loan-to-value covenants in one or more of its secured
vessel financings. This risk could be mitigated by the potential
for the company to post additional collateral or reduce the debt
to restore compliance. Nonetheless, Moody's does believe that OSG
will maintain compliance with the covenants of its unsecured
revolving credit facility. Execution risk and market risk could
also affect the pace, scope and pricing of the company's Title XI
financings and or other vessel monetization efforts, each of which
will be important for stabilizing the liquidity profile. Event
risk related to fleet growth also remains a risk to the credit
profile as the weak industry fundamentals could cause OSG to
pursue opportunistic vessel purchases, as successful shipping
companies typically do during troughs of the cycle.
"The B3 rating balances OSG's position as a market leader in the
majority of its trades and the proactive approach to addressing
the refinancing risk of the revolving credit against very weak
credit metrics and potential increasing pressure on liquidity
should the current weak sector fundamentals extend into 2013,"
said Root. "Improvements in fundamentals in the Jones Act trades
and the large number of unencumbered vessels help to mitigate some
of the ratings pressure from the large operating losses and
negative free cash flow generation reported in recent periods and
increased reliance on external sources of financing," continued
Root. Trading the majority of the international tankers in pools
helps OSG's vessels earn relatively higher freight rates
throughout the shipping cycle because pool trading typically
increases vessel utilization. Demands on liquidity could be higher
without this trading strategy.
The outlook could be stabilized once OSG strengthens its
liquidity, such as by assuring in the aggregate at least $250
million of cash and availability after the New Revolver becomes
effective and if improved vessel values reduce the prospect of
non-compliance with financial covenants of its secured financing
agreements. Sustained improvements in credit metrics, such as Debt
to EBITDA of less than 7.0 times, Funds from Operations + Interest
to Interest of at least 2.5 times and positive free cash flow
generation that is applied to debt reduction could lead to a
ratings upgrade. Debt-funded growth of the fleet or returns to
shareholders ahead of a meaningful reduction in Debt to EBITDA
could lead to a ratings downgrade as could the inability to
maintain at least $100 million of cash and revolver availability.
The inability to demonstrate a positive inflection in credit
metrics by the end of 2012 could also pressure the ratings.
Overseas Shipholding Group, Inc., headquartered in New York City,
NY, is one of the largest publicly traded tanker companies in the
world, engaged primarily in the ocean transportation of crude oil
and petroleum products.
The principal methodology used in rating OSG was the Global
Shipping Industry Methodology published in December 2009. Other
methodologies used include Loss Given Default for Speculative-
Grade Non-Financial Companies in the U.S., Canada and EMEA
published in June 2009.
Overseas Shipholding Group, Inc., headquartered in New York City,
NY, is one of the largest publicly traded tanker companies in the
world, engaged primarily in the ocean transportation of crude oil
and petroleum products.
PACIFIC MONARCH: Wins Court Approval to Auction its Assets
----------------------------------------------------------
Dow Jones' DBR Small Cap reports that Pacific Monarch Resorts
Inc., a collection of luxury timeshares, received bankruptcy-court
approval to move ahead with a plan sell its assets at auction on
Jan. 11.
As reported in the Troubled Company Reporter on Nov. 29, 2011, the
Pacific Monarch is seeking to sell its assets to DPM Acquisition,
LLC, RFA PMR LoanCo, LLC, or to successful overbidders. The
assets to be auctioned consist of promissory notes and certain
other collateral that Pacific Monarch and certain of the Debtors
have pledged to Resort Finance America LLC.
Prepetition, the Debtors negotiated Asset Purchase Agreements with
DPM Acquisition LLC, and with RFA PMR LoanCo, LLC, an affiliate of
Resort Finance America, which together will effect a sale of
substantially all assets of the Debtors. The Debtors owe RFA
$266.9 million under prepetition loans as of the Petition Date.
RFA acquired rights to the loans from GMAC Commercial Finance LLC.
The Debtors also has a second credit facility from Branch Banking
& Trust. PMR's subsidiary, which serves as borrowers under the
BB&T facility, currently owes BB&T $13 million and the debt is
secured by notes in the face amount of $26.7 million.
About Pacific Monarch
Pacific Monarch Resorts, Inc., and certain affiliated debtors
filed voluntary Chapter 11 petitions (Bankr. C.D. Calif. Lead Case
No. 11-24720) on Oct. 24, 2011, disclosing $100 million to $500
million in both assets and debts. The affiliated debtors are
Vacation Interval Realty Inc., Vacation Marketing Group Inc., MGV
Cabo LLC, Desarrollo Cabo Azul, S. de R.L. de C.V., and Operadora
MGVM S. de R.L. de C.V.
Based in Laguna Hills, California, Pacific Monarch and its
affiliates generate revenue primarily from the sale and financing
of "vacation ownership points" in a timeshare program commonly
known and marketed as "Monarch Grand Vacations," a multi-location
vacation timeshare program that establishes a uniform plan for the
development, ownership, use and enjoyment of specified resort
accommodations for the benefit of its members. MGV is a nonprofit
mutual benefit corporation whose members are timeshare owners, and
it is administered by a board of directors elected by MGV members.
As of the Petition Date, MGV owned Resort Accommodations within
these resorts: Palm Canyon Resort (Palm Springs), Riviera Oaks
Resort & Racquet Club (Ramona), Riviera Beach & Spa Resort -
Phases I and II (Dana Point), Riviera Shores Beach (Dana Point),
Cedar Breaks Lodge (Brian Head), Tahoe Seasons Resort (South Lake
Tahoe), Desert Isle of Palm Springs (Palm Springs), the Cancun
Resort (Las Vegas), and the Cabo Azul Resort (Los Cabos, Mexico).
Future Vacation Accommodations are currently in the pre-
development stage in Kona, Hawaii and Las Vegas, Nevada.
Additionally, the Cabo Azul Resort has construction in progress on
two buildings.
The Pacific Monarch entities do not include the entities that
actually own the timeshare properties that have been dedicated to
use by the purchasers of timeshare points. The trusts that own
the properties are not liable for the Pacific Monarch entities'
obligations.
MGV is not a debtor.
Judge Erithe A. Smith presides over the jointly administered
cases. Lawyers at Stutman, Treister & Glatt PC serve as counsel
to the Debtors. The petition was signed by Mark D. Post, chief
executive officer and director.
Creditor Ikon Financial Services is represented by Christine R.
Etheridge. Creditor California Bank & Trust is represented in the
case by Michael G. Fletcher at Frandzel Robins Bloom & Csato, L.C.
Marshall F. Goldberg, Esq. at Glass & Goldberg argues for creditor
Fifth Third Bank. Creditor The Macerich Company is represented by
Brian D. Huben, Esq. at Katten Muchin Rosenman LLP. Interested
Party DPM Acquisition is represented by Joshua D. Wayser, Esq. at
Katten Muchin Rosenman LLP.
PALMVIEW CROSSING: Case Summary & 15 Largest Unsecured Creditors
----------------------------------------------------------------
Debtor: Palmview Crossing, Ltd.
1002 W. Sam Houston, Suite 4
Pharr, TX 78577
Bankruptcy Case No.: 11-70805
Chapter 11 Petition Date: December 5, 2011
Court: U.S. Bankruptcy Court
Southern District of Texas (McAllen)
Judge: Richard S. Schmidt
Debtor's Counsel: John Kurt Stephen, Esq.
CARDENA WHITIS AND STEPHEN
100 S. Bicentennial Boulevard
McAllen, TX 78501-7050
Tel: (956) 631-3381
E-mail: kurtstep@swbell.net
Scheduled Assets: $5,243,093
Scheduled Debts: $4,396,567
The Company?s list of its 15 largest unsecured creditors filed
with the petition is available for free at:
http://bankrupt.com/misc/txsb11-70805.pdf
The petition was signed by Hiram L. Garcia, member of Ram-Gar,
LLC, general partner.
PALM HARBOR: Emerges From Chapter 11 Bankruptcy
-----------------------------------------------
BankruptcyData.com reports that reports that the Joint Plan of
Liquidation for Palm Harbor Homes (nka PHH Liquidation Trust)
became effective, and the Company emerged from Chapter 11
protection.
Delaware Bankruptcy Judge Christopher S. Sontchi confirmed the
joint plan of liquidation of PHH Liquidation Trust, et al., on
Nov. 17, 2011.
Under the Plan, holders of priority claims will be paid in full,
holders of 3-1/4% Convertible Senior Notes will receive their pro
rata share of $54.78 million and holders of general unsecured
claims will receive their pro rata share of available cash.
As reported in the Troubled Company Reporter on Nov. 17, 2011, the
disclosure statement predicted that convertible senior note
holders would recognize a recovery of between 16.7% and 21%.
General unsecured creditors with $36.4 million to $47.3 million in
claims are to receive an identical recovery.
A copy of the confirmation order is available at:
http://bankrupt.com/misc/PHH_liquidationorder.pdf
About Palm Harbor Homes
Addison, Texas-based Palm Harbor Homes, Inc. --
http://www.palmharbor.com/-- manufactured and marketed factory-
built homes. The Company marketed nationwide through vertically
integrated operations, encompassing manufactured and modular
housing, financing and insurance.
Palm Harbor, along with affiliates, filed for Chapter 11
bankruptcy protection (Bankr. D. Del. Lead Case No. 10-13850) on
Nov. 29, 2010. Palm Harbor Homes disclosed assets of at least
$103,061,759 and liabilities of at least $1,244,977.
Brian Cejka at Alvarez & Marsal is the Debtors' chief
restructuring officer. Raymond James and Associates, Inc., is the
Debtors' investment banker. Alvarez & Marshal North America, LLC,
is the Debtors' financial advisor. BMC Group, Inc., is the
Debtors' claims agent. Pachulski Stang Ziehl & Jones LLP serves
as counsel to the Official Committee of Unsecured Creditors.
Following a court-approved sale process, Palm Harbor in March 2011
sold its business for $85.25 million to Fleetwood Enterprises
Inc., a venture between Cavco Industries Inc. and a fund advised
by Third Avenue Management LLC. Fleetwood is providing up to $55
million in secured financing for Palm Harbor's reorganization.
Palm Harbor Homes has changed its corporate name and case caption
to PHH Liquidation Trust.
PENINSULA HOSPITAL: Board Member Offers $5MM Replacement Loan
-------------------------------------------------------------
Barbara Benson at Crain's New York Business reports that board
member Martin Oliner, an attorney and the mayor of Lawrence, Long
Island, New York, offered on Dec. 7, 2011, to lend $5 million to
Peninsula Hospital Center following serious conflict-of-interest
allegations raised by the United States trustee against an
affiliate of Revival Home Health Care, which had stepped in to
rescue the hospital in September 2011.
The report notes that Peninsula Hospital is running low on cash
and faces its next payroll due date on Dec. 16, 2011.
According to the report, the board member's loan was one of four
proposals that Peninsula's board would consider and vote Dec. 9,
2011. Among the other offers are proposals from health care
lender MidCap Financial, and an additional financing offer from
the Revival affiliate. The four options have various lending
terms, but all would give Peninsula the cash infusion it needs.
The report says Peninsula found itself in a cash crunch after
weeks of being unable to win approval from creditors and the court
for a proposed debtor-in-possession, or DIP, package from the
Revival affiliate. The court-appointed trustee overseeing the
bankruptcy maintains that Peninsula's board and management are not
in control of the hospital, and that Revival holds the reins. The
trustee also claims that the Revival DIP package favors Revival
over other creditors. Peninsula denies those allegations.
The report relates that the trustee raised the stakes by asking
the court to name a Chapter 11 trustee to take control of the
hospital, or short of that, to name an examiner to investigate the
alleged conflicts.
The report adds that Bankruptcy Judge Elizabeth Strong refused to
let the U.S. trustee's allegations linger. With the hospital's
cash running low, she denied Peninsula's request to wait a week to
hold a hearing on appointing a Chapter 11 trustee. So,
Peninsula's board voted to accept an examiner.
About Peninsula Hospital
Wayne S. Dodakian, Vinod Sinha, and Shannon Gerardi filed an
involuntary Chapter 11 bankruptcy protection against Peninsula
Hospital Center -- http://www.peninsulahospital.org/-- (Bankr.
E.D.N.Y. 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.
Peninsula Hospital Center and Peninsula General Nursing Home
Corp., employed Alvarez & Marsal Healthcare Industry Group, LLC,
as financial advisors. The Hospital employed Abrams Fensterman et
al. as their attorneys. Judge Stong appointed Daniel T. McMurray
at Focus Management Group as patient care ombudsman.
Tracy Hope Davis, the United States Trustee for Region 2,
appointed five unsecured creditors to serve on the Official
Committee of Unsecured Creditors of Peninsula Hospital Center.
PENINSULA HOSPITAL: Taps Alvarez & Marsal as Financial Advisors
---------------------------------------------------------------
Peninsula Hospital Center, et al., ask the U.S. Bankruptcy Court
for the Eastern District of New York for permission to employ
Alvarez & Marsal Healthcare Industry Group. LLC as financial
advisors.
Among other things, A&M will provide assistance to the Debtors
with respect to management of the overall restructuring process,
the development of ongoing business and financial plans and
supporting restructuring negotiations among the Debtors, their
advisors and their creditors withe respect to an overall strategy
for the Chapter 11 cases
A&M will receive compensation of $64,000 for the period Sept. 19,
2011, to Sept. 30. The hourly rates of A&M's personnel are:
Managing Directors $600 - $850
Directors and Senior Directors $375 - $600
Associates and Senior Associates $275 - $375
Analysts $200 - $275
Commencing Oct. 16, 2011, A&M's monthly compensation will be
capped at 125,000 per calendar month which will be pro rated for
partial calendar months.
A&M received $125,000 as a retainer in connection with preparing
for and conducting the filing of the Chapter 11 cases. 90 days
prior to the Bankruptcy filing, A&M received retainers totaling
$175,000 for the services performed or to be performed for the
Debtors.
To the best of the Debtors' knowledge, A&M is a "disinterested
person" as that term is defined in Section 101(14) of the
Bankruptcy Code.
About Peninsula Hospital
Wayne S. Dodakian, Vinod Sinha, and Shannon Gerardi filed an
involuntary Chapter 11 bankruptcy protection against Peninsula
Hospital Center -- http://www.peninsulahospital.org/-- (Bankr.
E.D.N.Y. 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.
Peninsula Hospital Center and Peninsula General Nursing Home
Corp., employed Alvarez & Marsal Healthcare Industry Group, LLC,
as financial advisors. The Hospital employed Abrams Fensterman et
al. as their attorneys. Judge Stong appointed Daniel T. McMurray
at Focus Management Group as patient care ombudsman. The Debtor
also tapped Nixon Peabody as their special counsel, and BDO USA,
LLP as auditors.
Tracy Hope Davis, the United States Trustee for Region 2,
appointed five unsecured creditors to serve on the Official
Committee of Unsecured Creditors of Peninsula Hospital Center.
Arent Fox LLP serves as the Committee's counsel.
PENINSULA HOSPITAL: Court OKs Nixon Peabody as Special Counsel
--------------------------------------------------------------
Peninsula Hospital Center and Peninsula General Nursing Home Corp.
d/b/a Peninsula Center For Extended Care & Rehabilitation sought
and obtained permission to employ Nixon Peabody as their counsel,
nunc pro tunc to Sept. 19, 2011.
Nixon Peabody will be paid on an hourly basis and reimbursed of
actual, necessary expenses. The current hourly rates of the
attorneys presently designated to represent the Debtors range from
$595 to $850. Other professionals may from time to time serve the
Debtors with these hourly rates:
Senior partners $935
New associates $230
Legal assistants $240 - $305
The Debtors believe that Nixon Peabody does not hold or represent
an interest adverse to the Debtors' estates with respect to the
matters on which it is to be employed.
About Peninsula Hospital
Wayne S. Dodakian, Vinod Sinha, and Shannon Gerardi filed an
involuntary Chapter 11 bankruptcy protection against Peninsula
Hospital Center -- http://www.peninsulahospital.org/-- (Bankr.
E.D.N.Y. 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.
Peninsula Hospital Center and Peninsula General Nursing Home
Corp., employed Alvarez & Marsal Healthcare Industry Group, LLC,
as financial advisors. The Hospital employed Abrams Fensterman et
al. as their attorneys. Judge Stong appointed Daniel T. McMurray
at Focus Management Group as patient care ombudsman.
Tracy Hope Davis, the United States Trustee for Region 2,
appointed five unsecured creditors to serve on the Official
Committee of Unsecured Creditors of Peninsula Hospital Center.
PERKINS & MARIE: Plan of Reorganization Declared Effective
----------------------------------------------------------
Perkins & Marie Callender's Inc., et al., notified the U.S.
Bankruptcy Court for the District of Delaware that the effective
date of its Second Amended Joint Plan of Reorganization occurred
on Nov. 30, 2011.
The Court entered an order confirming the Plan on Nov. 1.
As reported in the Troubled Company Reporter on Nov. 4, 2011, the
Plan gives the new stock to holders of senior unsecured notes
owed $204 million and to general unsecured creditors owed between
$20 million or $25 million.
The plan provides that general unsecured creditors have the
option of taking 10% in cash rather than stock, so long as the
total payment for those receiving the cash option doesn't exceed
$1.5 million. About $103 million owing on secured notes will be
rolled over into new secured notes equal to the full amount of the
old debt plus interest. Holders of existing stock and
subordinated claims receive nothing in the plan.
The Court also ordered that all requests for compensation or
reimbursement of professional fee claims for services rendered
prior to the Effective Date will be filed and served by Dec. 30,
2011, at 4:00 p.m. (prevailing Eastern Time).
Any and all claims for damages arising from the rejection of an
executory contract or unexpired lease must be filed on Dec. 30.
About Perkins & Marie Callender's
Based in Memphis, Tennessee, Perkins & Marie Callender's Inc., fka
The Restaurant Company, is the owner or franchiser of nearly 600
family-dining restaurants, the Perkins Restaurants and Marie
Callender's. Perkins & Marie and several affiliates filed for
Chapter 11 bankruptcy (Bankr. D. Del. Lead Case No. 11-11795) on
June 13, 2011. Perkins & Marie disclosed $290 million in assets
and $441 million in debt as of the Chapter 11 filing.
Judge Kevin Gross presides over the case. Robert S. Brady, Esq.,
and Robert F. Poppiti, Jr., Esq., at Young, Conaway, Stargatt &
Taylor, LLP; and Mitchel H. Perkiel, Esq., Hollace T. Cohen, Esq.,
and Brett D. Goodman, Esq., at Troutman Sanders, LLP, serve as
bankruptcy counsel. The Debtors' financial advisors are Whitby,
Santarlasci & Company. Their claims agent is Omni Management
Group, LLC. Deloitte Tax LLP serves as tax services provider.
DIP lender Wells Fargo is represented by lawyers at Paul,
Hastings, Janofsky & Walker LLP.
Roberta A. DeAngelis, U.S. Trustee for Region 3, appointed seven
unsecured creditors to serve on the Official Committee of
Unsecured Creditors in the Debtors' cases. Ropes & Gray LLP
represents the Committee.
PETTERS COMPANY: Trustee Taps Boies Schiller as Special Counsel
--------------------------------------------------------------
Douglas A. Kelley, the Chapter 11 Trustee for the bankruptcy
estates of Petters Company, Inc., et al., sought and obtained
permission the U.S. Bankruptcy Court for the District of Minnesota
for permission to employ Boies, Schiller & Flexner, LLP, as his
special counsel.
BSF will advise and represent the Trustee with respect to
adversary proceeding no. 10-04443 entitled, Douglas A. Kelley,
Trustee for Petters Company, Inc., and Petters Group Worldwide,
LLC, John R. Stoebner, Trustee for Polaroid Corporation, et al.,
and Randall L. Seaver, Trustee for Petters Capital, LLC,
Plaintiffs, vs. JPMorgan Chase & Co., JPMorgan Chase Bank, N.A.,
One Equity Partners LLC, Jacques A. Nasser, Lee M. Gardner,
Charles F. Auster, James W. Koven, Rick A. Lazio, J. Michael
Pocock, William L. Flaherty and Ira H. Parker, defendants.
The Trustee does not believe that the retention of BSF will be
duplicative of services being provided by other attorneys or
firms. BSF will be working with and assisting the law firm of
Fruth, Jamison & Elsass, PLLC, in conjunction with the JPMorgan
Litigation.
To the best of Trustee's knowledge, neither BSF nor any of its
partners or employees hold or represent any material interest
adverse to the Trustee, the Debtors, the United States Trustee,
employees of the United States Trustee, or their respective
attorneys.
The following are or may be creditors of the Debtors who have been
identified as current clients of BSF on matters entirely unrelated
to these Debtors and the JPMorgan litigation: Amex, Comcast
and Qwest.
BSF anticipates being engaged by multiple parties in the JPMorgan
Litigation against certain parties on behalf of the following
entities as co-plaintiffs:
a. BSF anticipates being retained by John R. Stoebner, Chapter 7
Trustee of affiliated debtors in jointly administered bankruptcy
cases titled In re Polaroid Corporation, et al., currently pending
before the United States Bankruptcy Court for the District of
Minnesota, Case No. 08-46617; and
b. BSF anticipates being retained by Randall L. Seaver, the
Chapter 7 Trustee of Petters Capital, LLC, currently pending
before the United States Bankruptcy Court for the District of
Minnesota, Case No. 09-43847.
The Trustee believes these representations do not constitute
conflicts, but may be "connections" within the meaning of Rule
2014, and are therefore disclosed. Trustee waives any conflict
arising out of the same.
The current hourly rates of attorneys and legal staff currently
expected to provide services to the Trustee are:
Name Hourly Rate
---- -----------
Richard B. Drubel (Partner) $850
Kimberly Schultz (Counsel) $590
Matthew Henken (Associate) $560
Ethan Frechette (Associate) $420
Ann Fraser (Paralegal) $160
Darci Blanchard (Legal Assist.) $130
About Petters Group
Based in Minnetonka, Minn., Petters Group Worldwide LLC is a
collection of some 20 companies, most of which make and market
consumer products. It also works with existing brands through
licensing agreements to further extend those brands into new
product lines and markets. Holdings include Fingerhut (consumer
products via its catalog and Web site), SoniqCast (maker of
portable, WiFi MP3 devices), leading instant film and camera
company Polaroid (purchased for $426 million in 2005), Sun Country
Airlines (acquired in 2006), and Enable Holdings (online
marketplace and auction for consumers and manufacturers' overstock
inventory). Founder and chairman Tom Petters formed the company
in 1988.
Petters Company, Inc., is the financing and capital-raising unit
of Petters Group Worldwide.
Thomas Petters, the founder and former CEO of Petters Group, has
been indicted and a criminal proceeding against him is proceeding
in the U.S. District Court for the District of Minnesota.
Petters Company, Petters Group Worldwide and eight other
affiliates filed separate petitions for Chapter 11 protection
(Bankr. D. Minn. Lead Case No. 08-45257) on Oct. 11, 2008. In its
petition, Petters Company estimated its debts at $500 million and
$1 billion. Parent Petters Group Worldwide estimated its debts at
not more than $50,000.
Fruth, Jamison & Elsass, PLLC, represents Douglas Kelley, the duly
appointed Chapter 11 Trustee of Petters Company, Inc., et al. The
trustee tapped aynes and Boone, LLP as special counsel, and Martin
J. McKinley as his financial advisor.
Petters Aviation, LLC, and affiliates MN Airlines, LLC, doing
business as Sun Country Airlines, Inc., and MN Airline Holdings,
Inc., filed separate petitions for Chapter 11 bankruptcy
protection (Bankr. D. Minn. Case Nos. 08-45136, 08-35197 and
08-35198) on Oct. 6, 2008. Petters Aviation is a wholly owned
unit of Thomas Petters Inc. and owner of MN Airline Holdings, Sun
Country's parent company.
PINNACLE AIR: Seeks Loan Term, CBA Changes to Improve Liquidity
---------------------------------------------------------------
Pinnacle Airlines Corp. has commenced a comprehensive program to
reduce short- and long-term costs and enhance liquidity.
Planned initiatives include seeking modifications to the company's
agreements with its mainline airline partners, equipment lessors,
debt holders, real property lessors and vendors. The company will
also seek to work with its pilots and other employees (both union
and non-union) to reduce labor costs. As part of its efforts, the
company will examine and further rationalize its business lines,
organizational structure and executive and director level
functions.
Pinnacle Airlines Corp. has engaged the services of Seabury Group
LLC's consulting division, Barclays Capital, and the law firm of
Davis Polk & Wardwell LLP to assist with these efforts.
"Pinnacle Airlines Corp. is facing a convergence of events that,
if left unaddressed, will make 2012 an extremely challenging
year," said Sean Menke, the company's President and Chief
Executive Officer. "We have a great deal of hard work ahead of
us, but these efforts are necessary to ensure we can operate as a
profitable business for our shareholders, mainline flying
partners, employees and other stakeholders."
As of June 30, 2011, Pinnacle had total assets of $1.53 billion
and $1.42 billion in total liabilities. Current assets total
$190.6 million while current liabilities total $248.1 million.
The airline swung to a net loss of $5.34 million for the fist six
months of 2011.
About Pinnacle Airlines Corp.
Pinnacle Airlines Corp. (NASDAQ: PNCL) -- http://www.pncl.com/--
a $1 billion airline holding company with 7,800 employees, is the
parent company of Pinnacle Airlines, Inc.; Mesaba Aviation, Inc.;
and Colgan Air, Inc. Flying as Delta Connection, United Express
and US Airways Express, Pinnacle Airlines Corp. operating
subsidiaries operate 199 regional jets and 80 turboprops on more
than 1,540 daily flights to 188 cities and towns in the United
States, Canada, Mexico and Belize. Corporate offices are located
in Memphis, Tenn., and hub operations are located at 11 major U.S.
airports.
PRECISION PARTS: Plan of Liquidation Declared Effective
-------------------------------------------------------
PPI Holdings, Inc., et al., notified the U.S. Bankruptcy Court for
the District of Delaware that the effective date of the Plan of
Liquidation proposed by the Debtors and the Official Committee of
Unsecured Creditors occurred on Nov. 15, 2011.
The Court confirmed the Debtors' Plan on Oct. 28.
As reported in the Troubled Company Reporter on Aug. 5, 2011, the
Plan provides for the transfer of the assets and debts of the
Debtors to the Liquidating Trust which will be administered by the
Liquidating Trustee, who will, among other things, distribute the
proceeds from the assets to creditors.
The Plan designates six Classes of Claims and one Class of
Interests. Priority Unsecured Claims in Class 1 and Other Secured
Claims in Class 2 are Unimpaired under the Plan and are deemed to
accept the Plan.
Convenience Claims in Class 3, General Unsecured Claims in
Class 4, and Lender Deficiency Claims in Class 5 are Impaired and
entitled to vote.
Intercompany Claims in Class 6 and Interests in Class 7 are
Impaired and deemed to reject the Plan.
Under the Plan, Class 1 Priority Unsecured Claims will be paid in
full on the Effective Date. Class 2 Other Secured Claims will, at
the option of the Liquidating Trustee, receive (i) 100% of their
Claims in Cash in full on the Effective Date, or (ii) the
collateral securing their Claims.
Class 3 Convenience Claims will receive, in full satisfaction of
their Claims, Cash in amount equal to 3.5% of their Claims,
without Postpetition Interest.
Each holder of a Class 4 General Unsecured Claim will receive its
pro rata share of $150,000, which will be funded into the General
Unsecured Reserve Account on the Effective Date. The Proponents
estimate that the total amount of Class 4 General Unsecured Claims
is approximately $103,140,000. Accordingly, the Proponents
estimate that Holders of Allowed General Unsecured Claims will
receive a minimum Pro Rata distribution equal to 0.15% of their
Allowed Claims.
The bulk of anticipated distribution to Class 4 will come from
recoveries in Avoidance Actions and other litigation.
Class 5 Lender Deficiency Claims will receive Cash in an amount
equal to the Holder's Pro Rata share of the remaining funds
in the Liquidating Trust after Claims in Class 1 through
Class 4 and expenses of the Liquidating Trust have been
paid in full.
Class 6 Intercompany Claims and Class 6 Interests will not receive
any distributions. These Claims will be extinguished.
A copy of the First Amended Disclosure Statement is available at:
http://bankrupt.com/misc/ppi.firstamendedDS.pdf
A full-text copy of the Disclosure Statement, together with the
Court-approved liquidation analysis, is available for free at:
http://ResearchArchives.com/t/s?76e0
The Court also ordered that any entity who holds or asserts a
professional fee claim must file its final fee application by
Dec. 30, 2011, at 4:00 p.m.
About Precision Parts
Headquartered in Rochester Hills, Michigan, Precision Parts
International Services Corp. -- http://www.precisionparts.com/--
sold products to major north American automotive and non-
automotive original equipment manufacturers and Tier 1 and 2
suppliers. PPI and its units operated six manufacturing
facilities throughout North America, including a facility in
Mexico operated on their behalf by Intermex Manufactura de
Chihuahua under a shelter and logistics agreement.
The Company and eight of its affiliates filed for Chapter 11
protection (Bankr. D. Del. Lead Case No. 08-13289) on Dec. 12,
2008. Attorneys at Pepper Hamilton LLP serve as the Debtors'
bankruptcy counsel. Alvarez & Marsal North America LLC is the
Debtor's financial advisors and Kurtzman Carson Consultants LLC is
the claims, noticing and balloting agent. PPI Holdings Inc.
estimated assets and debts between $100 million and $500 million
in its Chapter 11 petition.
Attorneys at Stevens & Lee, P.C., represent the Creditors
Committee as counsel.
On March 13, 2009, the Bankruptcy Court approved the Debtors' sale
of substantially all of their assets to Cerion LLC. The sale
closed on March 26, 2009. The Debtors received net proceeds of
$16,031,508 after an agreed upon working capital adjustment.
PRESSURE BIOSCIENCES: NASDAQ Grants Request for Continued Listing
-----------------------------------------------------------------
Pressure BioSciences, Inc. disclosed on Dec. 7, 2011 that it
received notice that the NASDAQ Listing Qualifications Panel has
granted the Company's request for continued listing on The NASDAQ
Capital Market subject to, among other things, the Company's
demonstration of compliance with the applicable minimum
stockholders' equity requirement of $2.5 million by Feb. 29, 2012.
While the Company is working toward regaining compliance with all
applicable requirements for continued listing on The NASDAQ
Capital Market, including both the minimum stockholders' equity
and the minimum bid price of $1.00 per share, there can be no
assurance that the Company will be able to demonstrate compliance
by the deadline set forth above or that the Panel will grant the
Company an extension in the event compliance is not timely
achieved.
About Pressure BioSciences
Pressure BioSciences, Inc. is focused on the development,
marketing, and sale of proprietary laboratory instrumentation and
associated consumables based on Pressure Cycling Technology. PCT
is a patented, enabling technology platform with multiple
applications in the estimated $6 billion life sciences sample
preparation market. PCT uses cycles of hydrostatic pressure
between ambient and ultra-high levels to control bio-molecular
interactions. PBI currently focuses its efforts on the
development and sale of PCT-enhanced sample preparation systems
(instruments and consumables) for mass spectrometry, biomarker
discovery, bio-therapeutics characterization, vaccine development,
soil and plant biology, forensics, histology, and counter-
bioterror applications.
QUADRA FNX: Moody's Changes Outlook on Ratings to Developing
------------------------------------------------------------
Moody's Investors Service changed the outlook on the ratings of
Quadra FNX Mining Ltd. (Quadra) to developing following Quadra's
announcement that it has entered into a definitive agreement with
KGHM Polska Miedz S.A. (KGHM), under which KGHM has agreed to
acquire all of Quadra's issued and outstanding common shares and
warrants.
RATINGS RATIONALE
The developing outlook incorporates uncertainties surrounding
final terms of the acquisition, creditworthiness of the resultant
entity, and the potential for competing bids. If Quadra's debt is
redeemed following the acquisition, Moody's will withdraw its
ratings.
If the arrangement is consummated as contemplated, Quadra's
shareholders will receive C$15.00 per common share, representing a
premium of approximately 41.3%, and warrant holders will receive
C$5.76 for each 2007 warrant and C$1.68 for each 2009 warrant.
KGHM intends to finance the total cost of acquisition of C$3
billion (excluding assumed debt) using cash on hand. While Quadra
has advised its shareholders to vote in favor of the KGHM, the
ultimate completion of the arrangement will be subject to
shareholder and warrant holder approval, relevant regulatory
approvals and other customary conditions.
Pursuant to change of control provisions governing Quadra's
existing $500 million 7.75% senior notes, the acquiring entity
will be required to make an offer to redeem all of the outstanding
notes at the price equal to 101% of principal, plus any accrued
and unpaid interest.
Quadra's B1 corporate family rating reflects its limited diversity
and modest size, as well as the relatively short reserve life of
the existing mines. In addition the rating considers the
dependence on Robinson mine for a significant portion of its
copper production, high cost production profile at a number of the
company's mines, and the geologic complexity and mineral variation
at the Robinson mine, the key revenue and earnings contributor.
However, the rating acknowledges the company's modest leverage pro
forma for the debt issue, and substantive cash position, which
will support its substantive capital investments over the next few
years, particularly the development of the Sierra Gorda copper
project in Chile in a joint venture with Sumitomo, as the company
looks to achieve its strategic growth objectives. This position
will accommodate possible negative free cash flow generation over
the next 12 to 15 months. Notwithstanding the reasonable leverage
position and solid liquidity, the operating risks, short lived
production profile at currently operating mines, and higher cost
position are key rating drivers.
The principal methodology used in rating Quadra was the Global
Mining Industry Methodology published in May 2009. Other
methodologies used include Loss Given Default for Speculative-
Grade Non-Financial Companies in the U.S., Canada and EMEA
published in June 2009.
QUADRA FNX: S&P Puts B+ Corp. Credit Rating on Watch Developing
---------------------------------------------------------------
Standard & Poor's Ratings Services placed its ratings on
Vancouver-based Quadra FNX Mining Ltd., including its 'B+' long-
term corporate credit rating on the company, on CreditWatch with
developing implications. CreditWatch with developing implications
means that we could raise, lower, or affirm the ratings.
"The CreditWatch follows Quadra FNX's agreement to be acquired by
KGHM Polska Miedz S.A. in a C$3 billion all-cash transaction,"
said Standard & Poor's credit analyst Donald Marleau. "To resolve
the CreditWatch, we will evaluate potential changes in the
combined entity's business risk profile, seek clarification on its
financial policies, and assess any effects on the rated notes,"
Mr. Marleau added.
"We believe that the acquisition could strengthen Quadra FNX's
credit profile by enhancing its competitive position without an
offsetting increase in financial risk. We understand that KGHM has
minimal debt, and is planning to fund the acquisition with cash on
hand. We expect that this transaction could expand the combined
entity's geographic and mine diversification and extend its
aggregate reserve life. On the other hand, we could lower the
ratings if we expect debt to increase along with the acquisition,"
S&P said.
The transaction is subject to a Quadra FNX shareholder vote and
regulatory approvals in Canada and, to some extent, in Poland.
Pursuant to a change-of-control clause in the rated US$500 million
secured notes, management could redeem the debt upon completion of
the transaction, currently targeted for first-quarter 2012.
"We will resolve the CreditWatch when the proposed transaction has
cleared regulatory and shareholder hurdles in a manner that
ensures adequate visibility on completion. Should the transaction
occur as proposed, we expect that we would maintain our ratings on
Quadra FNX. On the other hand, the ratings could potentially move
up one notch, but only after we confirm that the combined entity's
resulting operating diversity and cost position support ambitious
medium-term capital expenditures. We believe that a lower rating
is less likely based on the current transaction proposal, because
it appears that the transaction would improve Quadra FNX's
competitive position without increasing debt," S&P said.
QUANTUM FUEL: Incurs $8.4 Million Net Loss in Oct. 31 Quarter
-------------------------------------------------------------
Quantum Fuel Systems Technologies Worldwide, Inc., reported a net
loss attributable to stockholders of $8.40 million on $13.02
million of total revenue for the three months ended Oct. 31, 2011,
compared with a net loss attributable to stockholders of $1.45
million on $3.88 million of total revenue for the same period
during the prior year.
The Company reported a net loss attributable to stockholders of
$11.03 million on $20.27 million of total revenue for the year
ended Apri1 30, 2011, compared with a net loss attributable to
stockholders of $46.29 million on $9.60 million of total revenue
during the prior year.
The Company reported a net loss attributable to stockholders of
$16.26 million on $19.77 million of total revenue for the six
months ended Oct. 31, 2011, compared with a net loss attributable
to stockholders of $3.06 million on $7.44 million of total revenue
for the same period a year ago.
The Company's balance sheet at July 31, 2011, showed
$74.15 million in total assets, $31.62 million in total
liabilities, and $42.53 million total stockholders' equity.
Ernst & Young LLP, in Orange County, California, noted that
Quantum Fuel's recurring losses and negative cash flows combined
with the Company's existing sources of liquidity and other
conditions raise substantial doubt about the Company's ability to
continue as a going concern.
Alan P. Niedzwiecki, President and CEO, stated, "We are excited
about the continued growth in our electric drive and fuel systems
revenue base and expanding customer programs. Our product
shipments to Fisker Automotive and increasing CNG tank sales are
driving the revenue growth and we remain enthusiastic about the
expected positive impact this will continue to have on our
operations." Mr. Niedzwiecki continued, "The renewable energy
side of our business has been negatively impacted by uncertainty
around feed-in-tariff programs and difficulty in obtaining project
financing. We intend to move forward with developing a limited
number of renewable energy projects with strategic partnerships,
subject to sufficient equity or debt project financing required to
fund such development."
A full-text copy of the press release is available at:
http://is.gd/6QrmFj
About Quantum Fuel
Based in Irvine, California, Quantum Fuel Systems Technologies
Worldwide, Inc., is a fully integrated alternative energy company
and considers itself a leader in the development and production of
advanced clean propulsion systems and renewable energy generation
systems and services.
Quantum Fuel and its senior lender, WB QT, LLC, entered into a
Ninth Amendment to Credit Agreement and a Forbearance Agreement on
Jan. 3, 2011. The Senior Lender agreed to provide the Company
with a $5.0 million non-revolving line of credit, which may be
drawn upon at any time prior to April 30, 2011. Advances under
the New Line of Credit do not bear interest -- unless an event of
default occurs, in which case the interest rate would be 10% per
annum -- and mature on April 30, 2011. The Senior Lender also
agreed to forbear from accelerating the maturity date for any
portion of the Senior Debt Amount and from exercising any of its
rights and remedies with respect to the Senior Debt Amount until
April 30, 2011.
Possible Bankruptcy
The Company anticipates that it will need to raise a significant
amount of debt or equity capital in the near future in order to
repay certain obligations owed to the Company's senior secured
lender when they mature. As of June 15, 2011, the total amount
owing to the Company's senior secured lender was approximately
$15.5 million, which includes approximately $12.5 million of
principal and interest due under three convertible promissory
notes that are scheduled to mature on Aug. 31, 2011, and a $3.0
million term note that is potentially payable in cash upon demand
beginning on Aug. 1, 2011, if the Company's stock is below $10.00
at the time demand for payment is made. If the Company is unable
to raise sufficient capital to repay these obligations at maturity
and the Company is otherwise unable to extend the maturity dates
or refinance these obligations, the Company would be in default.
The Company said it cannot provide any assurances that it will be
able to raise the necessary amount of capital to repay these
obligations or that it will be able to extend the maturity dates
or otherwise refinance these obligations. Upon a default, the
Company's senior secured lender would have the right to exercise
its rights and remedies to collect, which would include
foreclosing on the Company's assets. Accordingly, a default would
have a material adverse effect on the Company's business and, if
the Company's senior secured lender exercises its rights and
remedies, the Company would likely be forced to seek bankruptcy
protection.
QUEENS MEWS SOUTH: Case Summary & Largest Unsecured Creditor
------------------------------------------------------------
Debtor: Queens Mews South LP
61 Greene Avenue, Suite 3
Brooklyn, NY 11238
Bankruptcy Case No.: 11-50192
Chapter 11 Petition Date: December 5, 2011
Court: U.S. Bankruptcy Court
Eastern District of New York (Brooklyn)
Judge: Carla E. Craig
Debtor's Counsel: Bruce Weiner, Esq.
ROSENBERG MUSSO & WEINER LLP
26 Court Street, Suite 2211
Brooklyn, NY 11242
Tel: (718) 855-6840
Fax: (718) 625-1966
E-mail: rmwlaw@att.net
Estimated Assets: $0 to $50,000
Estimated Debts: $1,000,001 to $10,000,000
The petition was signed by James M. Francis, managing director.
Affiliate that filed separate Chapter 11 petition:
Entity Case No. Petition Date
------ -------- -------------
Queens Mews West LP 11-50194 12/05/11
The Company?s list of its largest unsecured creditors contains
only one entry:
Entity Nature of Claim Claim Amount
------ --------------- ------------
Phoenix Group Design Build LLC -- $67,638
25 Old Kings Highway, Suite 13
No. 269
Darien, CT 06820
QUEENS MEWS WEST: Case Summary & Largest Unsecured Creditor
-----------------------------------------------------------
Debtor: Queens Mews West LP
61 Greene Avenue, Suite 3
Brooklyn, NY 11238
Bankruptcy Case No.: 11-50194
Chapter 11 Petition Date: December 5, 2011
Court: U.S. Bankruptcy Court
Eastern District of New York (Brooklyn)
Judge: Carla E. Craig
Debtor's Counsel: Bruce Weiner, Esq.
ROSENBERG MUSSO & WEINER LLP
26 Court Street, Suite 2211
Brooklyn, NY 11242
Tel: (718) 855-6840
Fax: (718) 625-1966
E-mail: rmwlaw@att.net
Estimated Assets: $0 to $50,000
Estimated Debts: $1,000,001 to $10,000,000
The petition was signed by James M. Francis, managing director.
Affiliate that filed separate Chapter 11 petition:
Entity Case No. Petition Date
------ -------- -------------
Queens Mews South LP 11-50192 12/05/11
The Company?s list of its largest unsecured creditors contains
only one entry:
Entity Nature of Claim Claim Amount
------ --------------- ------------
Phoenix Group Design Build LLC -- $67,638
25 Old Kings Highway, Suite 13
No. 269
Darien, CT 06820
ROCK POINTE HOLDINGS: Financial Schedules Due Dec. 16
-----------------------------------------------------
Rock Pointe Holdings Company, LLC, faces a Dec. 16 deadline to
file with the Bankruptcy Court its schedules of assets and
liabilities and statement of financial affairs, according to case
docket information. Government proofs of claim are due May 30,
2012, the docket says. Information about the general claims bar
date is not available yet.
Rock Pointe Holdings Company, LLC, headquartered in Tacoma,
Washington, filed for Chapter 11 bankruptcy (Bankr. E.D. Wash.
Case No. 11-05811) on Dec. 2, 2011. Brett L. Wittner, Esq. --
brettlwittner@kentwittnerlaw.com -- presides over the case. It
estimated $50 million to $100 million in assets and debts. The
petition was signed by Hyun Um, member of Prium Companies, LLC.
ROUND TABLE: Judge Clears Firm to Exit Bankruptcy Protection
------------------------------------------------------------
Dow Jones' DBR Small Cap reports that Round Table Pizza Inc. has
won permission to exit bankruptcy under a plan that requires the
West Coast restaurant chain to sell itself or refinance its
largest loan within a 20-month window.
As reported in the Troubled Company Reporter on Dec. 9, 2011, Dow
Jones' DBR Small Cap said that a bankruptcy judge threw out last-
minute objections that Round Table Pizza Inc.'s unsecured
creditors had raised over the Medieval-themed pizza chain's
bankruptcy-exit plan, clearing the way for the restaurant chain's
plan to head to court for what could be its final stamp of
approval.
About Round Table
Based in Concord, California, Round Table Pizza, Inc. --
http://www.roundtablepizza.com/-- is a private, 100% employee-
owned company with corporate offices based in Concord, California.
Round Table is largely owned by an Employee Stock Ownership Plan,
with 3,190 participants. The ESOP is designed and intended to
provide a source of retirement income to Round Table's loyal,
long-term employees.
Round Table is a major West Coast pizza chain. There are
currently approximately 348 franchised stores, operated by
approximately 150 franchisees. Prior to the petition date, Round
Table operated 128 company-owned stores.
Round Table filed for Chapter 11 bankruptcy protection (Bankr.
N.D. Calif. Case No. 11-41431) on Feb. 9, 2011. Judge Roger L.
Efremsky presides over the case. Scott H. McNutt, Esq., at McNutt
Law Group serves as the Debtor's bankruptcy counsel. The Debtors
also tapped Frank, Rimerman & Co. as an auditor and accountant.
Round Table disclosed $1,066,524 in assets and $35,625,649 in
liabilities as of the Chapter 11 filing.
The case is jointly administered with affiliates -- The Round
Table Franchise Corporation, Round Table Development Company, and
Round Table Pizza Nevada LLC.
The official committee of unsecured creditors has tapped
Brownstein Hyatt Farber Schreck, LLP as counsel. The Debtor also
tapped First Bankers Trust Services, Inc. as discretionary,
independent, and institutional ESOP Trustee, and Johanson Berenson
LLP as an ESOP counsel.
First Bankers Trust Services, Inc., was appointed as institutional
trustee of the Round Table Restated Employee Stock Ownership Plan
and Trust (ESOP). Johanson Berenson LLP serves as an ESOP
counsel.
ROUNDY'S SUPERMARKETS: S&P Puts 'B' Credit Rating on Watch Pos.
---------------------------------------------------------------
Standard & Poor's Ratings Services placed its ratings on Roundy's
Supermarkets Inc., including its 'B' corporate credit rating, on
CreditWatch with positive implications.
"Roundy's CreditWatch placement reflects our belief that proceeds
from the proposed IPO along with the concurrent refinancing would
reduce the company's total debt burden and improve credit ratios,"
said Standard & Poor's credit analyst Charles Pinson-Rose.
"The company's parent filed a FORM S-1, in which it could raise up
to $230 million of total proceeds through an IPO, though we expect
net proceeds to reduce debt. We may consider a higher rating
depending upon the amount of debt reduction and the terms of the
new debt," S&P said.
"For example, if Roundy's reduces debt by $150 million, we
estimate that pro forma leverage would improve to 5.2x and
coverage would be near 2.5x (assuming interest costs of Roundy's
new debt is comparable with the company's current first-lien term
loan). Currently, we calculate operating lease-adjusted leverage
to be 5.7x, after Roundy's paid $54 million of term loan
borrowings in November; adjusted EBITDA coverage of interest was
2.1x at the end of the third quarter (Oct. 1, 2011). If Roundy's
does reduce debt by $150 million, we would still assess the
company's financial risk as 'highly leveraged' (as we define the
term in our criteria), but may consider a higher rating based on
the ratios improvement," S&P said.
"However, any final ratings outcome would incorporate our
assessment of the company's near-term profitability prospects and
our forecasted credit ratios. The company's operations have been
relatively stable, and Roundy's has generated meaningful free cash
flow, which, if sustained, should allow for credit ratio
enhancement. However, we see limited profit growth opportunities,
given the difficult industry environment resulting from intense
competition, prolonged weakness in the U.S. economy, and continued
food cost inflation," S&P said.
"We intend to resolve the CreditWatch when the company completes
the IPO and the corresponding refinancing. We may consider a
higher rating, but believe an upgrade, if any, would be limited to
one notch. If Roundy's does not complete the IPO or does not have
a credible plan, in our view, to refinance or amend its first-lien
credit facility by the end of March 2012, we would either revise
or resolve our CreditWatch listing. Any such action would
incorporate our view that the company's liquidity would be 'less
than adequate,' a result of narrow cushion over financial
covenants of the first-lien facility and the near-term maturity of
Roundy's revolver -- due November of 2012," S&P said.
ROYSTER ENTERPRISES: Case Summary & 20 Largest Unsecured Creditors
------------------------------------------------------------------
Debtor: Royster Enterprises, Inc.
Box 1448
Jackson, MI 49204
Bankruptcy Case No.: 11-70977
Chapter 11 Petition Date: December 5, 2011
Court: United States Bankruptcy Court
Eastern District of Michigan (Detroit)
Judge: Thomas J. Tucker
Debtor's Counsel: Kurt A. OKeefe, Esq.
1593 Torrey Road
Grosse Pointe Woods, MI 48236
Tel: (313) 962-4630
E-mail: koklaw@gmail.com
Scheduled Assets: $1,453,520
Scheduled Debts: $2,559,419
A copy of the list of 20 largest unsecured creditors is
available for free at http://bankrupt.com/misc/mieb11-70977.pdf
The petition was signed by James B. Royster, president.
RUDEN MCCLOSKY: Greenspoon Sale an "Innovation"
-----------------------------------------------
Jacqueline Palank, writing for Dow Jones Newswires, reports that
the decision by law firm Ruden McClosky to use the bankruptcy
process to cinch a $7.8 million cash-and-debt sale to Greenspoon
Marder last week Monday has made it something of an innovator in
the legal profession.
"Companies across corporate America seek court protection while
they try to sell continuing businesses to potential white knights.
But until last week, law firms usually used bankruptcy to shut
down," Ms. Palank writes.
According to Ms. Palank, restructuring professionals say the deal
will likely encourage other troubled law firms to look to
bankruptcy court as a place to find help rather than a place to
die.
"I am seeing much greater interest on the part of law firms that
are experiencing financial stress to consider 'out of the box'
solutions to their financial dilemmas, including bankruptcy," says
Bill Brennan, a principal with legal consulting firm Altman Weil
Inc, according to the Dow Jones report. "I expect that this will
become much more common in the very near future."
About Ruden McClosky
Founded in 1959, Ruden McClosky P.A., fdba Ruden, McClosky, Smith,
Schuster & Russell, P.A. -- http://www.ruden.com/-- was a full-
service law firm serving the legal needs of clients throughout
Florida, the U.S., and internationally. It had eight offices in
Florida.
In August 2011, the firm was reportedly in merger talks with
Cleveland, Ohio-based Benesch firm. In September 2011, founder
Donald McClosky died after a long battle with cancer.
Ruden McClosky filed for Chapter 11 protection (Bankr. S.D. Fla.
Case No. 11-40603) on Nov. 1, 2011, in its hometown of Fort
Lauderdale, with a plan to sell a substantial portion of its
assets for $7.6 million to Fort Lauderdale-based Greenspoon
Marder, subject to higher and better offers at an auction.
Judge Raymond B. Ray oversees the case. Leslie Gern Cloyd, Esq.,
and Paul Steven Singerman, Esq. -- lcloyd@bergersingerman.com and
singerman@bergersingerman.com -- at Berger Singerman, P.A., serve
as the Debtor's counsel. Development Specialists, Inc., serves as
the Debtor's restructuring advisors.
The petition was signed by DSI's Joseph J. Luzinski, who serves as
chief restructuring officer. Kurtzman Carson Consultants LLC
serves as the Debtor's claims and noticing agent. In its
petition, the Debtor estimated $10 million to $50 million in both
assets and debts.
An official committee of unsecured creditors has been appointed in
the case, and is represented by Segall Gordich, P.A.
Counsel to the Debtor's lender, Wells Fargo Bank, N.A., is
Jonathan Helfat, Esq., at Otterbourg, Steindler, Houston & Rosen,
P.C. Counsel to Greenspoon Marder, the proposed purchaser, is R.
Scott Shuker, Esq., at Latham, Shuker, Eden & Beaudine, LLP.
Ruden McClosky was authorized on Nov. 30 by the bankruptcy judge
to sell the firm to Greenspoon Marder for $5.6 million cash plus
assumption of $2 million in debt.
SACRED HEART: Moody's Withdraws 'Ca' Bond Rating
------------------------------------------------
Moody's Investors Service has withdrawn the Ca rating of Sacred
Heart Health System and removed it from Watchlist. The rating
action effects $19.3 million in rated debt outstanding.
SUMMARY RATINGS RATIONALE
The withdraw of the rating is prompted by the lack of issuer
information regarding operations, strategy, financial performance.
As noted in the November 10, 2011 Watchlist report, if information
was not received in 30 days, Moody's will take appropriate rating
action which could include the withdrawal, raising or lowering of
the rating. In the absence of this information, Moody's believes
that it is unable to provide investors with an informed assessment
of the current credit quality of this debt instrument. Moody's
notes the improvement in operating performance and balance sheet
growth in fiscal year 2011. However, due to lack of communication
with the issuer regarding strategy and performance, historical
volatile operating performance Moody's is taking no action at this
time except to withdraw the rating.
WITHDRAWAL REASON
Moody's has withdrawn the rating because it believes it has
insufficient or otherwise inadequate information to support the
maintenance of the rating.
SAN TAN PIZZA: Voluntary Chapter 11 Case Summary
------------------------------------------------
Debtor: San Tan Plaza, LLC
8350 W. Sahara Ave., Suite 210
Las Vegas, NV 89117
Bankruptcy Case No.: 11-48939
Chapter 11 Petition Date: December 5, 2011
Court: United States Bankruptcy Court
Northern District of Illinois (Chicago)
Debtor's Counsel: Gordon E. Gouveia, Esq.
SHAW, GUSSIS, FISHMAN, GLANTZ, ET AL
321 N. Clark Street, Suite 800
Chicago, IL 60654
Tel: (312) 541-0151 Ext. 102
Fax: (312) 980-3888
E-mail: ggouveia@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 Services, Inc., Debtor's manager.
Affiliates that filed separate Chapter 11 petitions:
Petition
Debtor Case No. Date
------ -------- ----
GAC Storage Copley Place, LLC 11-40953 10/07/11
GAC Storage El Monte, LLC 11-42638 10/20/11
GAC Storage Lansing, LLC 11-40944 10/07/11
The Makena Great American 11-48549 12/01/11
Anza Company, LLC
SEARCHMEDIA HOLDINGS: Executives & Directors Increase Ownership
---------------------------------------------------------------
SearchMedia Holdings Limited announced that members of the
executive management team, including the Chairman of the Board,
Robert Fried, Chief Operating Officer, Johnny Lo, members of the
Board of Directors, Frost Gamma Investments Trust, a trust
controlled by Phillip Frost, M.D., and the beneficial owner of
more than 10 percent of SearchMedia's common stock, and
certain members of The Frost Group, LLC, have increased
their ownership of the Company.
Since April 8, 2011, SearchMedia's inside ownership has increased
by 142,663 shares purchased in the open market, at an average
price of $1.48. Since SearchMedia is a foreign private issuer,
its officers and directors are not subject to Section 16 of the
Securities Act of 1934 and therefore are not required to file a
Form 4 in connection with transactions of SearchMedia's
securities.
About SearchMedia
SearchMedia is a leading nationwide multi-platform media company
and one of the largest operators of integrated outdoor billboard
and in-elevator advertising networks in China. SearchMedia
operates a network of high-impact billboards and one of China's
largest networks of in-elevator advertisement panels in 50 cities
throughout China. Additionally, SearchMedia operates a network of
large-format light boxes in concourses of eleven major subway
lines in Shanghai. SearchMedia's core outdoor billboard and in-
elevator platforms are complemented by its subway advertising
platform, which together enable it to provide a multi-platform,
"one-stop shop" services for its local, national and international
advertising clients.
Marcum Bernstein & Pinchuk LLP, in New York, expressed substantial
doubt about SearchMedia Holdings' ability to continue as a going
concern. The independent auditors noted that the Company has
suffered recurring net losses from operations and has a working
capital deficiency.
The Company reported a net loss of $46.6 million on $49.0 million
of revenues for 2010, compared with a net loss of $22.6 million on
$37.7 million of revenues for 2009.
SHYONA INC: Minesh Patel Buys 102-Unit Hotel for $2.5 Million
-------------------------------------------------------------
The Daily News reports that Minesh Patel has bought the 102-unit
Quality Suites hotel at 8166 Varnavas Drive in Cordova, Tenn.,
from Shyona Inc. for $2.5 million. Mr. Patel and spouse Jagruti
Patel financed the purchase with a $2.8 million loan through
Liberty Bank of Arkansas.
According to the report, the Shelby County Assessor of Property's
2011 appraisal is $4.7 million. Shyona bought the property in
2008 for $5.2 million, financing it with a $4.7 million loan.
The report notes that a court on Nov. 9, 2011, gave Shyona the
green light to sell the Cordova hotel. The transaction closed
Nov. 29, 2011.
Based in Cordova, Tennessee, Shyona, Inc. dba Quality Suites of
Cordova, filed for Chapter 11 protection on Dec. 14, 2011 (Bankr.
W.D. Tenn. Case No. 10-33624). Judge Jennie D. Latta presides
over the case. Michael P. Coury, Esq., at Butler, Snow, O'Mara,
Stevens & Cannada, represents the Debtor. The Debtor estimated
both assets and debts of between $1 million and $10 million.
SHUANEY IRREVOCABLE: Sec. 341 Creditors' Meeting Set for Jan. 20
----------------------------------------------------------------
The United States Trustee in Tallahassee, Florida, will hold a
Meeting of Creditors pursuant to 11 U.S.C. Sec. 341(a) in the
bankruptcy case of Shuaney Irrevocable Trust on Jan. 20, 2012, at
2:00 p.m. at Pensacola (Rm. 66, Winston E. Arnow Fed. Bldg., 100
N. Palafox St.).
Proofs of claim are due by April 23, 2012. Government proofs of
claim are due by July 18, 2012.
Shuaney Irrevocable Trust, in Fort Walton Beach, Florida, filed
for Chapter 11 bankruptcy (Bankr. N.D. Fla. Case No. 11-31887) on
Dec. 1, 2011. Judge William S. Shulman presides over the case.
The Law Office of Mark Freund, Esq. -- loomf@comcast.net -- serves
as the Debtor's counsel. The Debtor scheduled $20,996,723 in
assets and $19,625,890 in debts. The petition was signed by
Michael P. Spellman, Trustee.
SMART-TEK SOLUTIONS: Purchase Pact with American Marine Replaced
----------------------------------------------------------------
Smart-tek Solutions, Inc., on Oct. 19, 2011, announced that it had
acquired Solvis Medical Group from AMERICAN MARINE, LLC, dba AMS
OUTSCOURCING. The announcement should have read that Smart-tek
Solutions, Inc., purchased the assets and brand name of Solvis
Medical from AMERICAN MARINE, LLC, dba AMS OUTSCOURCING. As such
the original agreement was cancelled and replaced by an
Acquisition of Assets Agreement.
The purchase price was $535,000 consisting of $35,000 cash payment
at closing plus a $500,000 promissory note that matures in one
year and bears a 6% simple interest rate. The purchase price will
be revalued at the one and two year time periods based on
performance as follows:
* Year 2012 - At Dec. 31, 2012, the Acquired Net Assets
will be revalued at four (4) times pretax earnings. A
one year promissory note at 6% interest will be issued
for the net change between the original value and the
2012 revalue.
* Year 2013 - At Dec. 31, 2013, the Acquired Net Assets
will be revalued at four (4) times pretax earnings. A
one year promissory note at 6% interest will be issued
for the net change between the revalue as of Dec. 31,
2012, and the revalue at Dec. 31, 2013.
A full-text copy of the Acquisition of Assets Agreement is
available for free at http://is.gd/N5ZJKw
About Smart-tek Solutions
Newport Beach, Calif.-based Smart-tek Solutions Inc. has two
business lines. Through its wholly owned subsidiary Smart-Tek
Communications Inc. the Company specializes in the design and
development of Radio Frequency Identification (RFID) integration,
monitoring and tracking solutions to meet industry demands.
Through its wholly owned subsidiary Smart-Tek Automated Services
Inc. the Company provides professional employer organization
services.
The Company reported a comprehensive loss of $3.19 million on
$15.25 million of revenue for the nine months ended Sept. 30,
2011, compared with a comprehensive income of $1.40 million on
$10.11 million of revenue for the same period a year ago.
The Company's balance sheet at Sept. 30, 2011, showed $6.40
million in total assets, $8.38 million in total liabilities, all
current, and a $1.98 million total stockholders' deficit.
John Kinross-Kennedy, of Irvine, California, expressed substantial
doubt about the Company's ability to continue as a going concern.
Mr. Kinross-Kennedy noted that that the Company has suffered
recurring losses until the latest fiscal year, and has a working
capital deficiency of $994,278 and a stockholders' deficiency of
$438,164 at June 30, 2010.
SNOKIST GROWERS: Food-Safety Issues, Financing Woes Prompt Ch.11
----------------------------------------------------------------
Stephanie Gleason, writing for Dow Jones' Daily Bankruptcy Review,
reports Snokist Growers filed for Chapter 11 bankruptcy Dec. 7
with plans to liquidate after sales couldn't recover from
allegations that it violated food-safety rules. According to DBR,
Snokist blamed the Food and Drug Administration's actions for
lowering sales too dramatically for them to continue operating.
DBR relates that during an inspection earlier this year of Snokist
Grower's warehouse, the Food and Drug Administration found eight
instances between January 2010 and December 2010 in which the
company was reprocessing applesauce that was moldy by using
methods that the FDA said doesn't effectively kill the toxins.
The inspection was prompted by an incident in May 2011 when
Snokist applesauce, which at the time was part of the U.S.
Department of Agriculture school-lunch program, made 18 North
Carolina schoolchildren sick. All the children recovered, but the
company was forced to recall the product, it said.
Snokist disclosed $69 million in assets and between $50 million
and $100 million in debts in its petition. DBR relates Snokist
owes lenders Rabo AgriFinance Inc. and KeyBank more than $25
million. The majority of creditors are individual grower-members
of the cooperative, owed more than $100,000 each.
Snokist said it expects the liquidation of its assets to be enough
to fully repay creditors.
Tyler Slauson at KIMATV.com reports that during 2009 and 2010,
Snokist's strained relationship with its operating lender and its
unwillingness to provide Snokist sufficient operational funds
disabled Snokist's ability to process the volume of fruit
necessary to support sustainability and profitability. In March,
2011, Snokist entered into agreement with a replacement lender
more familiar with seasonal vagaries of agricultural endeavors
which allowed Snokist to access a new operating line of credit.
Management and the board were hopeful the new line of credit would
reverse the company's losses of the prior years. But, KIMATV.com
notes, the new lender was reluctant to provide Snokist the
necessary funds to cover large losses.
KIMATV.com relates the board of directors and the management are
in the process of exploring a number of different options for the
potential sale, lease or operation of the company's facilities.
Yakima, Washington-based Snokist Growers -- http://www.snokist.com
-- is a century-old cooperative of fruit growers. Snokist
provides fresh and processed pears, apples, cherries, plums, and
nectarines.
SNOKIST GROWERS: Case Summary & 20 Largest Unsecured Creditors
--------------------------------------------------------------
Debtor: Snokist Growers
P.O. Box 1587
Yakima, WA 98907
Tel: (509) 248-5200
Bankruptcy Case No.: 11-05868
Chapter 11 Petition Date: December 7, 2011
Court: U.S. Bankruptcy Court
Eastern District of Washington (Spokane/Yakima)
Judge: Frank L. Kurtz
Debtor's Counsel: Roger William Bailey, Esq.
BAILEY & BUSEY LLC
411 North 2nd Street
Yakima, WA 98901
Tel: (509) 248-4282
Fax: (509) 575-5661
E-mail: roger.bailey.attorney@gmail.com
joshua.busey.attorney@gmail.com
charmie.pulse.bblawfirm@gmail.com
Estimated Assets: $50,000,001 to $100,000,000
Estimated Debts: $50,000,001 to $100,000,000
The petition was signed by Jim Davis, president.
Debtor's List of Its 20 Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
------ --------------- ------------
Atlas Pacific Lease Payments $663,796
P.O. Box 11626
Tacoma, WA 98411
ADM Corn Processing Division Trade Debt $311,035
P.O. Box 92572
Chicago, IL 60675
Ben Kern Grower Payments $291,391
2020 Orchard Road
Ellensburg, WA 98926
Frank B. Omstead Grower Payments $283,406
803 S. Edison Street
Kennewick, WA 99336
Olsen Orchards, Inc. Grower Payments $275,213
7251 Yakima Valley Highway
Zillah, WA 98953
David P. Rush Grower Payments $258,972
131 White Road
Zillah, WA 98953
Virginia R. Salverda ? Trustee Grower Payments $222,111
Allen L. Ashley Grower Payments $170,289
Karl J. Staudinger Grower Payments $167,734
Adobe Creek Packing Co., Inc. Grower Payments $165,623
White & Shidell Grower Payments $154,709
Greene & Hemly Grower Payments $143,802
Diablo Valley Packaging, Inc. Trade Debt $134,863
White Orchard Grower Payments $127,409
John W. Babcock Grower Payments $126,247
Douglas Orchards, Inc. Grower Payments $124,298
Pacific Power Trade Debt $118,578
Don Wippert Grower Payments $117,252
Schmidt Orchards, Inc. Grower Payments $113,680
Babcock Orchards, LLC Grower Payments $108,509
SOLYNDRA LLC: White House Denies Cherry-Picking Docs
----------------------------------------------------
Martin Bricketto at Bankruptcy Law360 reports that the White House
on Tuesday denied House Republicans' accusations that it cherry-
picked only a small number of documents in response to subpoenas
concerning the government's $535 million loan guarantee to
bankrupt solar panel manufacturer Solyndra LLC, according to a
news report. The U.S. House Energy and Commerce Committee has
blasted the White House for producing 136 pages of documents,
claiming it had numerous other documents that fall within the
parameters of its Nov. 3 subpoenas, Law360 relates.
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 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. BDO Consulting,
a division of BDO USA, LLP, as financial advisor and BDO Capital
Advisors, LLC, serves as investment banker for the creditors'
panel.
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. The Committee has tapped
Blank Rome LLP as counsel.
Solyndra is at least the fourth solar company to seek court
protection from creditors since August 2011. Other solar firms
are Evergreen Solar and start-up Spectrawatt Inc., both of which
filed in August, and Stirling Energy Systems Inc., which filed for
Chapter 7 bankruptcy late in September.
SP NEWSPRINT: U.S. Trustee Appoints 7-Member Creditors' Panel
-------------------------------------------------------------
Roberta A. DeAngelis, the United States Trustee for Region 3,
pursuant to 11 U.S.C. Sec. 1102(a) and (b), appointed seven
unsecured creditors to serve on the Official Committee of
Unsecured Creditors of SP Newsprint Holdings LLC.
The Creditors Committee members are:
1. Pension Benefit Guaranty Corporation
Attn: Marie-Christine Fogt
1200 K Street, NW,
Washington DC 20005
Tel: 202-326-4070 x3647
Fax: 202-842-2643
2. Portland General Electric
Attn: Barbara Halle
121 SW Salmon Street, Portland OR 97204
Tel: 503-464-8858
Fax: 503-464-2200
3. Harold Lemay Enterprises Inc.
c/o Waste Connections Inc.
Attn: Patrick Shea, 2295
Iron Point Road, Suite 200
Folsom CA 95630
Tel: 916-608-8200
Fax: 8916-357-9735
4. TTS, LLC
Attn: Robert Kasak
2595 Dallas Parkway, Suite 300
Frisco TX 75034
Tel: 214-778-0805
Fax: 469-467-3705
5. Sonoco Recycling Inc.
Attn: George Goudelock
One North Second Street, Hartsville SC 29550
Tel: 843-383-7459
Fax: 843-383-7929
6. The Newark Group
Attn: Nicolas Galante
20 Jackson Drive, Cranford NJ 07016
Tel: 908-276-4000 x308
Fax: 908-276-2888
7. Rumpke
Attn: Nancy Delong,
10795 Hughes Road, Cincinnati OH 45251,
Tel: 513-851-0122 x3765
Fax: 513-741-5212
About SP Newsprint
Greenwich, Conn.-based SP Newsprint Holdings LLC -- aka Bulldog
Acquisition I LLC, Bulldog Acquisition II LLC, Publishers Papers,
Southeastern Paper Recycling and SP Newsprint Merger LLC -- and
three affiliates, SP Newsprint Co. LLC, SP Recycling Corporation
and SEP Technologies L.L.C, filed for Chapter 11 bankruptcy
(Bankr. D. Del. Lead Case No. 11-13649) on Nov. 15, 2011.
SP Newsprint Holdings LLC is a newsprint company controlled by
polo-playing mogul Peter Brant. It is one of the largest
producers of newsprint in North America. SP Recycling
Corporation, a Georgia corporation and the Debtors' other
operating company, was established in 1980 as a means for SP to
secure a ready supply of recycled fiber, a key raw material for
its newsprint.
SP Newsprint is the second Brant-owned newsprint company to tumble
into bankruptcy proceedings in recent years. Current and former
affiliated entities are Bear Island Paper Company, L.L.C., Brant
Industries, Inc., F.F. Soucy, Inc., Soucy Partners Newsprint,
Inc., White Birch Paper Company.
Judge Christopher S. Sontchi presides over the case. Joel H.
Levitin, Esq., Maya Peleg, Esq., and Richard A. Stieglitz Jr.,
Esq. -- jlevitin@cahill.com , mpeleg@cahill.com and
rstieglitz@cahill.com -- at Cahill Gordon & Reindel LLP serve as
the Debtors' lead counsel. Lee E. Kaufman, Esq., and Mark D.
Collins, Esq. -- kaufman@rlf.com and collins@RLF.com -- at
Richards, Layton & Finger, P.A., serve as the Debtors' Delaware
counsel. AlixPartners LLP serves as the Debtors' financial
advisors and The Garden City Group Inc. serves as the Debtors'
claims and noticing agent. In its petition, SP Newsprint Holdings
estimated $100 million to $500 million in assets and debts. The
petitions were signed by Edward D. Sherrick, executive vice
president and chief financial officer.
SP NEWSPRINT: Court OKs GCG Inc. as Claims & Notice Agent
---------------------------------------------------------
SP Newsprint Holdings LLC and its debtor-affiliates sought and
obtained permission to employ GCG Inc. as claims, notice, and
balloting agent for their bankruptcy cases.
Prior to the Petition Date, the Debtors paid GCG a total of
$50,000 as a retainer. The Debtors do not believe that they owe
GCG any amounts for pre-petition services rendered.
Jeffrey S. Stein -- jeff.stein@gcginc.com -- Vice President of
GCG, attests that GCG is a "disinterested person" as that term is
defined in section 101(14) of the Bankruptcy Code.
About SP Newsprint
Greenwich, Conn.-based SP Newsprint Holdings LLC -- aka Bulldog
Acquisition I LLC, Bulldog Acquisition II LLC, Publishers Papers,
Southeastern Paper Recycling and SP Newsprint Merger LLC -- and
three affiliates, SP Newsprint Co. LLC, SP Recycling Corporation
and SEP Technologies L.L.C, filed for Chapter 11 bankruptcy
(Bankr. D. Del. Lead Case No. 11-13649) on Nov. 15, 2011.
SP Newsprint Holdings LLC is a newsprint company controlled by
polo-playing mogul Peter Brant. It is one of the largest
producers of newsprint in North America. SP Recycling
Corporation, a Georgia corporation and the Debtors' other
operating company, was established in 1980 as a means for SP to
secure a ready supply of recycled fiber, a key raw material for
its newsprint.
SP Newsprint is the second Brant-owned newsprint company to tumble
into bankruptcy proceedings in recent years. Current and former
affiliated entities are Bear Island Paper Company, L.L.C., Brant
Industries, Inc., F.F. Soucy, Inc., Soucy Partners Newsprint,
Inc., White Birch Paper Company.
Judge Christopher S. Sontchi presides over the case. Joel H.
Levitin, Esq., Maya Peleg, Esq., and Richard A. Stieglitz Jr.,
Esq., at Cahill Gordon & Reindel LLP serve as the Debtors' lead
counsel. Lee E. Kaufman, Esq., and Mark D. Collins, Esq., at
Richards, Layton & Finger, P.A., serve as the Debtors' Delaware
counsel. AlixPartners LLP serves as the Debtors' financial
advisors and The Garden City Group Inc. serves as the Debtors'
claims and noticing agent. In its petition, SP Newsprint Holdings
estimated $100 million to $500 million in assets and debts. The
petitions were signed by Edward D. Sherrick, executive vice
president and chief financial officer.
Counsel for GECC as Pre-Petition Agent are Richard A. Levy, Esq.,
and David Hammerman, Esq., at Latham & Watkins LLP; and Kurt F.
Gwynne, Esq., at Reed Smith LLP.
Counsel to Avenue Investments LP are John Bessonette, Esq., and
Douglas Mannal, Esq., at Kramer Levin Naftalis & Frankel LLP.
SRE INVESTMENTS: Case Summary & 7 Largest Unsecured Creditors
-------------------------------------------------------------
Debtor: SRE Investments, L.P.
6418 E. Tanque Verde Road, #105
Tucson, AZ 85715
Bankruptcy Case No.: 11-33247
Chapter 11 Petition Date: December 6, 2011
Court: U.S. Bankruptcy Court
District of Arizona (Tucson)
Judge: Eileen W. Hollowell
Debtor's Counsel: Michael W. McGrath, Esq.
MESCH CLARK & ROTHSCHILD
259 North Meyer Avenue
Tucson, AZ 85701-1090
Tel: (520) 624-8886
Fax: (520) 798-1037
E-mail: ecfbk@mcrazlaw.com
Estimated Assets: $10,000,001 to $50,000,000
Estimated Debts: $1,000,001 to $10,000,000
The petition was signed by Ryan M. Schoff, president of Schomac
Development Inc., general partner.
Debtor's List of Its Seven Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
------ --------------- ------------
Saguaro Ranch Property Owners Association Dues $16,500
Assoc.
8375 N. Oracle Road, Suite 150
Tucson, AZ 85704
Swanson Ventures, LLC Services $12,375
3042 E. Placita Santa Lucia
Tucson, AZ 85716
Simmons Home Designs Inc. Services $3,000
2201 N. Camino Principal, Suite 11
Tucson, AZ 85715
Beach Fleischman PC Services $1,250
Dorris & Giordano PLC Services $750
Joe F. Tarver PC Legal Costs $300
Grubb & Ellis Services $300
ST. JAMES: Case Summary & 20 Largest Unsecured Creditors
--------------------------------------------------------
Debtor: St. James Episcopal Housing Development Corporation
1101 16th Street
Alexandria, LA 71301
Bankruptcy Case No.: 11-81647
Chapter 11 Petition Date: December 5, 2011
Court: United States Bankruptcy Court
Western District of Louisiana (Alexandria)
Judge: Henley A. Hunter
Debtor's Counsel: Bradley L. Drell, Esq.
GOLD, WEEMS, BRUSER, SUES & RUNDELL
P.O. Box 6118
Alexandria, LA 71307-6118
Tel: (318) 445-6471
E-mail: bdrell@goldweems.com
Scheduled Assets: $1,036,745
Scheduled Debts: $932,651
A list of the Company's 20 largest unsecured creditors filed
together with the petition is available for free at
http://bankrupt.com/misc/lawb11-81647.pdf
The petition was signed by James Leggett, chairman.
ST. PAUL: Voluntary Chapter 11 Case Summary
-------------------------------------------
Debtor: St. Paul Baptist Chuch of Paris
3115 Stacy Lane
Paris, TX 75460
Bankruptcy Case No.: 11-43639
Chapter 11 Petition Date: December 5, 2011
Court: U.S. Bankruptcy Court
Eastern District of Texas (Sherman)
Debtor's Counsel: Joyce W. Lindauer, Esq.
8140 Walnut Hill Lane, Suite 301
Dallas, TX 75231
Tel: (972) 503-4033
Fax: (972) 503-4034
E-mail: courts@joycelindauer.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
The Company did not file a list of creditors together with its
petition.
STRAWMEN, LP: Case Summary & 9 Largest Unsecured Creditors
----------------------------------------------------------
Debtor: Strawmen, LP
P.O. Box 10
Whitewright, TX 75491
Bankruptcy Case No.: 11-43657
Chapter 11 Petition Date: December 5, 2011
Court: U.S. Bankruptcy Court
Eastern District of Texas (Sherman)
Debtor's Counsel: Donald L. Johnston, Esq.
LAW OFFICE OF DONALD JOHNSTON
306 N. Travis Street, Suite 102
Sherman, TX 75090-9840
Tel: (903) 891-9840
Fax: (903) 891-4051
E-mail: djohnston50@verizon.net
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
The Company?s list of its nine largest unsecured creditors filed
with the petition is available for free at:
http://bankrupt.com/misc/txeb11-43657.pdf
The petition was signed by John Parker Burg, general partner.
SUMMER VIEW: Court OKs Karasik Law Group as Bankruptcy Counsel
--------------------------------------------------------------
Summer View Sherman Oaks LLC sought and obtained permission form
the U.S. Bankruptcy Court for the Central District of California
to employ Karasik Law Group, LLP, as its general bankruptcy
counsel.
As counsel, Karasik will give legal advice to Summer View on the
use or sale of the property of its estate, payment of pre-
bankruptcy debt, among other things.
The firm will also be tasked to examine and file objections to
claims, negotiate with secured and unsecured creditors, prepare
legal papers and develop a plan of reorganization for Summer View.
In exchange for its services, Karasik will be paid on an hourly
basis and will be reimbursed for its expenses. The firm's hourly
rates are:
Professionals Hourly Rates
------------- ------------
Partner $300
Co-counsel/Associate $250
Paralegal $75
Karasik assured the Court that it is a disinterested party.
About Summer View Sherman
The West Hollywood, California-based Summer View Sherman Oaks LLC,
aka Summer View Sherman Oaks Apartments LLC, a single-asset real
estate company, is the owner of a 169-unit apartment building
locate at 15353 Weddington Street, in Sherman Oaks, California.
The sole member of the Debtor is the Efim Sobol Family Trust Dated
November 18, 1995. Dr. Efim Sobol's mother, Sonia Sobol, 88 years
old, is the sole trustee and beneficiary of the Efim Sobol Trust.
The Company filed for bankruptcy under Chapter 11 (Bankr. C.D.
Calif. Case No. 11-19800) on Aug. 15, 2011. Judge Alan M. Ahart
presides over the case. The Debtor disclosed $23,228,304 in
assets and $16,535,378 in liabilities as of the Chapter 11 filing.
The petition was signed by Sonia Sobol, member.
Terry D. Shaylin, Esq., and Alik Segal, Esq., at Karasik Law
Group, LLP, in Los Angeles, Calif., represent the Debtor as
counsel.
SUPERIOR HOTELS: Case Summary & 6 Largest Unsecured Creditors
-------------------------------------------------------------
Debtor: Superior Hotels of West Texas, LLC
3165 South Danville Drive
Abilene, TX 79605
Bankruptcy Case No.: 11-10447
Chapter 11 Petition Date: December 5, 2011
Court: U.S. Bankruptcy Court
Northern District of Texas (Abilene)
Judge: Robert L. Jones
Debtor's Counsel: Charles Dick Harris, Esq.
LAW OFFICE OF DICK HARRIS, PC
P.O. Box 3835
Abilene, TX 79604
Tel: (325) 677-3311
Fax: (325) 677-3314
E-mail: dharris_law_firm@swbell.net
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
The Company?s list of its six largest unsecured creditors filed
with the petition is available for free at:
http://bankrupt.com/misc/txnb11-10447.pdf
The petition was signed by Dayakar Dasi Reddy, managing partner.
TEN SAINTS: Court OKs Susan Ernst as Valuation Expert
-----------------------------------------------------
Ten Saints LLC sought and obtained permission from the U.S.
Bankruptcy Court for the District of Nevada to employ Susan L.
Ernst as valuation expert.
The Debtor is authorized to render to Ernst the sum of $1,272,
which sum will be paid from Debtor's disputed cash collateral.
About Horizon Village Square et al.
Four related Las Vegas, Nevada-based entities sought Chapter 11
bankruptcy protection on July 13, 2011. The businesses are owned
or managed by local business people and firms, including Todd
Nigro, Nigro Development LLC, a Nigro family trust and other
investors.
Horizon Village Square LLC (Bankr. D. Nev. Case No. 11-21034) owns
the Vons-anchored Horizon Village Square Shopping Center near
I-515 and Horizon Drive in Henderson. The property includes five
retail buildings with nearly 43,000 square feet of space.
Ten Saints LLC (Bankr. D. Nev. Case No. 11-21028) owns the 134-
room Hampton Inn & Suites at St. Rose Parkway and Seven Hills
Drive in Henderson.
Beltway One Development Group LLC (Bankr. D. Nev. Case No. 11-
21026) owns the Desert Canyon Business Park at Russell Road and
the Las Vegas Beltway. It has two buildings and 15 acres.
Nigro HQ LLC (Bankr. D. Nev. Case No. 11-21014) owns an office
building at 9115 W. Russell Road occupied by Bank of George,
Infinity Plus LLC and Nigro Construction Inc.
Todd Nigro said the four bankruptcies were caused by threatened
foreclosures -- typically related to Wells Fargo Bank demanding
payments to keep loan-to-value ratios at specified levels.
Judge Mike K. Nakagawa presides over the cases. Lawyers at Gordon
Silver serve as the Debtors' bankruptcy counsel. The bankruptcy
petitions estimated assets and debts from $1 million to $10
million each for Nigro HQ; and from $10 million to $50 million in
both assets and debts for Horizon Village, Ten Saints and Beltway
One.
A fifth related business, Russell Boulder LLC, filed for
bankruptcy (Bankr. D. Nev. Case No. 10-29724) on Oct. 19, 2010.
It owns the 600-suite Siena Suites extended stay property at
Boulder Highway and Russell Road.
Edward M. Zachary, Esq., at Bryan Cave LLP, in Bryan Cave LLP, in
Phoenix, Ariz., and Robert M. Charles, Jr., Esq., at Lewis and
Roca LLP, in Los Vegas, Nev., represent Wells Fargo Bank, N.A., as
counsel.
TERRESTAR NETWORKS: Files Revised Joint Chapter 11 Plan
-------------------------------------------------------
BankruptcyData.com reports that TerreStar Networks filed with the
U.S. Bankruptcy Court a Revised Joint Chapter 11 Plan of
Reorganization and related Revised Disclosure Statement.
The Debtors have revised the Disclosure Statement and the Plan to,
among other things, "reflect events that have transpired since the
filing of the Disclosure Statement and Plan, modify, add or amend
certain language on account of comments received from various
parties in interest in the Debtors' chapter 11 cases and correct
various clerical and typographical errors." According to documents
filed with the Court, "On November 18, 2011, the Debtors filed the
Plan with the Bankruptcy Court to facilitate the liquidation of
the Debtors' estates and the distribution of the proceeds from the
Sale Transaction and any other remaining assets to holders of
Allowed Claims. The Plan also contemplates the reorganization of
the Debtors for the limited purpose of operating the business
until consummation of the Sale Transaction," according to the
Disclosure Statement.
The Court scheduled a Dec. 21, 2011 hearing to consider the
Disclosure Statement.
About TerreStar Corp. and TerreStar Networks
TerreStar Corporation and TerreStar Holdings, Inc., filed
voluntary Chapter 11 petitions with the U.S. Bankruptcy Court for
the Southern District of New York on Feb. 16, 2011.
TSC's Chapter 11 filing joins the bankruptcy proceedings of
TerreStar Networks Inc. and 12 other affiliates, which filed on
Oct. 19, 2010. The October Chapter 11 cases are procedurally
consolidated under TSN's Case No. 10-15446 under Judge Sean H.
Lane.
TSC is the parent company of each of the October Debtors. TSC has
four wholly owned direct subsidiaries: TerreStar Holdings, Inc.,
TerreStar New York Inc., Motient Holdings Inc., and MVH Holdings
Inc.
TSC's case is jointly administered with the cases of seven of the
October Debtors under the caption In re TerreStar Corporation, et
al., Case No. 11-10612 (SHL). The seven Debtor entities who
sought joint administration with TSC are TerreStar New York Inc.,
Motient Communications Inc., Motient Holdings Inc., Motient
License Inc., Motient Services Inc., Motient Ventures Holdings
Inc., and MVH Holdings Inc.
TSC is a Delaware corporation whose main asset is the equity in
non-Debtor TerreStar 1.4 Holdings LLC, which has the right to use
a "1.4 GHz terrestrial spectrum" pursuant to 64 licenses issued by
the Federal Communication Commission. TSC also has an indirect
89.3% ownership interest in TerreStar Network, Inc., which
operates a separate and distinct mobile communications business.
TerreStar Holdings is a Delaware corporation that directly holds
100% of the interests in 1.4 Holdings LLC.
TerreStar Networks -- TSN -- the principal operating entity of
TSC, developed an innovative wireless communications system to
provide mobile coverage throughout the United States and Canada
using satellite-terrestrial smartphones. The system, however,
required an enormous amount of capital expenditures and initially
produced very little in the way of revenue. TSN's available cash
and borrowing capacity were insufficient to cover its funding;
thus, forcing TSN to seek bankruptcy protection in October 2010.
TSC estimated assets and debts of $100 million to $500million in
its Chapter 11 petition.
Ira S. Dizengoff, Esq., at Akin, Gump, Strauss, Hauer & Feld, LLP,
in New York, serves as counsel for the TSC and TSN Debtors.
Garden City Group is the claims and notice agent. Blackstone
Advisory Partners LP is the financial advisor. The Garden City
Group, Inc., is the claims and noticing agent in the Chapter 11
cases.
Otterbourg Steindler Houston & Rosen P.C. is the counsel to the
Official Committee of Unsecured Creditors formed in TSN's Chapter
11 cases. FTI Consulting, Inc., is the Committee's financial
advisor.
TerreStar has signed a contract to sell its business to Dish
Network Corp. for $1.38 billion. TerreStar canceled a June 30
auction because there were no competing bids submitted by the
deadline.
As reported in the TCR on Nov. 23, 2011, TerreStar Networks Inc.
sold the business to Dish Network Corp. for $1.38 billion,
negotiated a settlement with creditors, and filed a liquidating
Chapter 11 plan. Bill Rochelle, the bankruptcy columnist for
Bloomberg News, reports the hearing to approve the explanatory
disclosure statement is set for Dec. 16. If the plan stays on
track, the confirmation hearing for approval
of the plan would take place Feb. 13.
TITANIUM GROUP: Reports HK$3 Million Net Income in Third quarter
----------------------------------------------------------------
Titanium Group Limited filed its quarterly report on Form 10-Q,
reporting net income of HK$3.0 million on HK$15.8 million of
revenue for the three months ended Sept. 30, 2011, compared with a
net loss of HK$802,247 on HK$4,805 of revenue for the same period
of 2010.
For the nine months ended Sept. 30, 2011, the Company has reported
net income of HK$882,405 on HK$32.7 million of revenue, compared
with a net loss of HK$3.8 million on HK$14,413 of revenue for the
same period last year.
The Company had an accumulated deficit of HK$20.0 million as of
Sept. 30, 2011. "The continuation of the Group as a going concern
through Sept. 30, 2012, is dependent upon the continuing financial
support from its stockholders," the Company said in the filing.
These factors raise substantial doubt about the Group's ability to
continue as a going concern."
A copy of the Form 10-Q is available for free at:
http://is.gd/8WEavo
Wanchai, Hong Kong-based Titanium Group Limited, through its
wholly owned subsidiary Shenzhen Kanglv Technology Ltd., is
engaged in the manufacture and sales of electronic cable products
in the PRC. Shenzhen Kanglv's principal products are various
types of computer cables, such as HDMI, DVI, VGA and USB cables,
as well as electric power cables.
TMP DIRECTIONAL: Wants to Use Cash Collateral to Fund Wind-Down
---------------------------------------------------------------
TMP Directional Marketing LLC seeks Bankruptcy Court authority to
use cash collateral securing obligations to its prepetition
secured lenders to fund an orderly wind-down of their operations.
The Debtors said General Electric Capital Corporation,
CapitalSource Finance LLC and Antares Capital Corporation have an
interest in the cash collateral.
The Debtors also proposed that they may be permitted to use cash
collateral until the earliest to occur of (a) 180 days after the
petition date, (b) the effective date of any plan of liquidation,
or (c) the first calendar day following the commencement of any
challenge on the amount, validity, priority, or security of the
lenders' prepetition liens.
The Prepetition Credit Agreement consisted of a Term Loan A with
GECC and Antares with "first out" priority of payment; a Term Loan
B with CapitalSource with "second out" priority of payment subject
to payment in full of Term Loan A; and revolving credit
commitments, in the aggregate amount of $10 million. As of April
29, 2011, the Debtors paid down the Revolver while $6.67 million
was due on Term Loan A and $14.78 million was due on Term Loan B.
As of the Petition Date, the Debtors believe that the only
obligations outstanding to the prepetition lenders are on account
of indemnification obligations for contingent and unliquidated
liabilities.
On July 5, 2011, the prepetition lenders swept $300,000 from the
Debtors' bank accounts as a rserve for the Debtors' potential
obligations to the prepetition lenders under the indemnification
provisions. If the Debtors' indemnification obligations are less
than $300,000, the lenders must return the remaining funds to the
Debtors.
As of Oct. 31, 2011, the Debtors have roughly $11 million cash
held in a GECC account, all of which serve as the lenders'
collateral.
As adequate protection of the lenders' interests against any
diminution in value of those interests, the Debtors propose to
grant the lenders additional and replacement liens on their
property. The replacement liens do not include any action or
claim under Chapter 5 of the Bankruptcy Code.
About TMP Directional Marketing
TMP Directional Marketing LLC, along with affiliates, filed for
bankruptcy (Bankr. D. Del. Case No. 11-13835) with plans to
liquidate its remaining assets according to a prepackaged plan.
TMP specialized in placing ads in the yellow pages of local
telephone books. Before ceasing substantially all of operations in
early April 2011, TMP was one of the leading providers of directed
search marketing in the United States, employing nearly 400 people
in 10 offices throughout the country.
TMP was spun off from Monster Worldwide Inc. Audax Group acquired
TMP in the 2005 spinoff. Monster isn't in bankruptcy and is no
longer involved in the company.
The Chapter 11 plan has been accepted by more than 95% of voting
creditors. The Company estimated that unsecured creditors will
collect 11% to 18% of what they are owed. Secured lenders
required TMP to pay them off earlier this year, helping cause the
business to shut down. Unsecured creditors, asserting $112
million in claims, formed an ad hoc committee to negotiate the
Chapter 11 plan. The Ad Hoc Committee consists of AT&T Yellow
Pages Holdings LLC; Genesis Publisher Services, SuperMedia LLC,
Dex One Corporation, Directory Publishing Solutions Inc., Local
Insight Media Holdings Inc., National Solutions, Inc., Yellowbook,
Inc., and Names and Numbers. Other members may be added from time
to time.
TMP's petition disclosed assets of $65.3 million, with debt
totaling $134.8 million. Among the debt, $132.9 million is
unsecured. James A. Stempel, Esq., and Ryan Blaine Bennett, Esq.,
at Kirkland & Ellis LLP; and Domenic E. Pacitti, Esq., and Morton
Branzburg, Esq., at Klehr Harrison Harvey Branzburg LLP, serve as
the Debtors' counsel. CRG Partners Group LLC serves as the
Debtors' restructuring advisors. Epiq Bankruptcy Solutions LLC
serves as claims and balloting agent. The petition was signed by
Timothy P. Nugent, vice president, assistant secretary, and
assistant treasurer.
Affiliates filing for bankruptcy are TMP DM, Inc. (Case No.
11-13836) and TMP DM, LLC (Case No. 11-13837).
Counsel to GECC, as agent to the prepetition lenders, are:
Peter Knight, Esq.
LATHAM & WATKINS LLP
233 South Wacker Drive, Suite 5800
Chicago, IL 60606
E-mail: peter.knight@lw.com
- and -
Eric Lopez Schnabel, Esq.
DORSEY & WHITNEY LLP
300 Delaware Avenue, Suite 1010
Wilmington, DE 19801
E-mail: schnabel.eric@dorsey.com
Counsel to CapitalSource are:
Mary Bucci, Esq.
BROWN RUDNICK LLP
One Financial Center
Boston, MA 02111
E-mail: mbucci@brownrudnick.com
- and -
Jeffrey C. Wisler, Esq.
CONNOLLY BOVE LODGE & HUTZ LLP
1007 N. Orange Street
Wilmington, DE 19801
E-mail: jwisler@cblh.com
Counsel to the Ad Hoc Committee is:
Brett H. Miller, Esq.
William Hildbold, Esq.
MORRISON & FOERSTER LLP
1290 Avenue of the Americas
New York, NY 10104
E-mail: brettmiller@mofo.com
whildbold@mofo.com
TMP DIRECTIONAL: To Sell Medical Listings Biz to ABMS for $4MM
--------------------------------------------------------------
TMP Directional Marketing LLC is selling assets associated with
its online verification of physician certifications and current
status service business to ABMS Solutions LLC, free and clear of
all liens, claims, and encumbrances.
The TMP Medical Listings Business provides the Debtors' customers
that employ physicians with online verification of, and data with
regard to, physician certification and current physician status.
This business is the Debtors' only ongoing business segment.
This aspect of the Debtors' digital advertising business accounted
for roughly 12% of their digital advertising gross revenues during
the year ending Dec. 31, 2010.
ABMS provided the highest and best offer to purchase the TMP
Medical Listings Business after taking into account the purchase
price of $1 million, assumption of roughly $2.95 million in
liabilities, and the contractual relationship between the parties,
which effectively restricts the Debtors from selling the TMP
Medical Listings Business to a third party without the consent of
the American Board of Medical Specialties, the parent of ABMS.
Pursuant to the Purchase Agreement, ABMS will assume all executory
vendor contracts and related obligations relating to the TMP
Medical Listings Business, consisting of roughly six vendor
contracts.
The Debtors and the American Board of Medical Specialties as
licensor are parties to a License and Web Services Agreement,
which provides the Debtors with a non-exclusive, non-transferable
and non-assignable license to use the Licensor's database of
licensed physician specialists and provides the basis for the TMP
Medical Listings Business.
The TMP Medical Listings Business includes the CERTIFACTS Online
subscription to the online database and Certification Profile
Services for identifying and certifying specific physician
specialties and certifications. The License Agreement terminates
under its own terms on Dec. 31, 2012.
The Debtors have accrued $573,000 of unpaid royalties owed to the
Licensor under the License Agreement, which is an event of default
under the License Agreement giving the Licensor an immediate right
to terminate the License Agreement. Without negotiating the
Purchase Agreement, the Licensor could have terminated the
Debtors' access to the licensed databases and effectively shut
down the TMP Medical Listings Business. The Licensor has not done
so.
The Debtors propose a Sale Hearing after Dec. 28, 2011, as the
ABMS may terminate the Purchase Agreement if the Closing Date does
not occur before Dec. 31, 2011.
Counsel to the ABMS are:
Erik L. Kantz, Esq.
Konstantinos Armiros, Esq.
ARNSTEIN & LEHR LLP
120 South Riverside Plaza, Suite 1200
Chicago, IL 60606-3910
E-mail: elkantz@arnstein.com
karmiros@arnstein.com
About TMP Directional Marketing
TMP Directional Marketing LLC, along with affiliates, filed for
bankruptcy (Bankr. D. Del. Case No. 11-13835) with plans to
liquidate its remaining assets according to a prepackaged plan.
TMP specialized in placing ads in the yellow pages of local
telephone books. Before ceasing substantially all of operations in
early April 2011, TMP was one of the leading providers of directed
search marketing in the United States, employing nearly 400 people
in 10 offices throughout the country.
TMP was spun off from Monster Worldwide Inc. Audax Group acquired
TMP in the 2005 spinoff. Monster isn't in bankruptcy and is no
longer involved in the company.
The Chapter 11 plan has been accepted by more than 95% of voting
creditors. The Company estimated that unsecured creditors will
collect 11% to 18% of what they are owed. Secured lenders
required TMP to pay them off earlier this year, helping cause the
business to shut down. Unsecured creditors, asserting $112
million in claims, formed an ad hoc committee to negotiate the
Chapter 11 plan. The Ad Hoc Committee consists of AT&T Yellow
Pages Holdings LLC; Genesis Publisher Services, SuperMedia LLC,
Dex One Corporation, Directory Publishing Solutions Inc., Local
Insight Media Holdings Inc., National Solutions, Inc., Yellowbook,
Inc., and Names and Numbers. Other members may be added from time
to time.
TMP's petition disclosed assets of $65.3 million, with debt
totaling $134.8 million. Among the debt, $132.9 million is
unsecured. James A. Stempel, Esq., and Ryan Blaine Bennett, Esq.,
at Kirkland & Ellis LLP; and Domenic E. Pacitti, Esq., and Morton
Branzburg, Esq., at Klehr Harrison Harvey Branzburg LLP, serve as
the Debtors' counsel. CRG Partners Group LLC serves as the
Debtors' restructuring advisors. Epiq Bankruptcy Solutions LLC
serves as claims and balloting agent. The petition was signed by
Timothy P. Nugent, vice president, assistant secretary, and
assistant treasurer.
Affiliates filing for bankruptcy are TMP DM, Inc. (Case No.
11-13836) and TMP DM, LLC (Case No. 11-13837).
General Electric Capital Corp., as agent to the prepetition
lenders, is represented by: Peter Knight, Esq., at Latham &
Watkins LLP, and Eric Lopez Schnabel, Esq., at Dorsey & Whitney
LLP. Lender CapitalSource is represented by Mary Bucci, Esq., at
Brown Rudnick LLP, and Jeffrey C. Wisler, Esq., at Connolly Bove
Lodge & Hutz LLP. The Ad Hoc Committee is represented by Brett H.
Miller, Esq., and William M. Hildbold, Esq., at Morrison &
Foerster LLP.
TMP DIRECTIONAL: Hires Epiq as Claims and Notice Agent
------------------------------------------------------
TMP Directional Marketing LLC anticipates that there will be in
excess of 3,000 entities to be noticed in the Chapter 11 cases.
Accordingly, TMP Directional seeks Bankruptcy Court permission to
hire Epiq Bankruptcy Solutions LLC as its notice, claims and
balloting agent. Epiq has rendered services to the Debtors since
February 2011 in connection with their wind-down and prepackaged
bankruptcy preparations. Pre-bankruptcy, the Debtors paid Epiq
$20,000 as retainer.
Jason D. Horwitz, vice president and senior consultant at Epiq,
attests that his firm neither holds nor represents an interest
materially adverse to the Debtors' estates with respect to any
matter for which it will be employed, and Epiq is a "disinterested
person" as that term is defined in Sec. 101(14) of the Bankruptcy
Code.
About TMP Directional Marketing
TMP Directional Marketing LLC, along with affiliates, filed for
bankruptcy (Bankr. D. Del. Case No. 11-13835) with plans to
liquidate its remaining assets according to a prepackaged plan.
TMP specialized in placing ads in the yellow pages of local
telephone books. Before ceasing substantially all of operations in
early April 2011, TMP was one of the leading providers of directed
search marketing in the United States, employing nearly 400 people
in 10 offices throughout the country.
TMP was spun off from Monster Worldwide Inc. Audax Group acquired
TMP in the 2005 spinoff. Monster isn't in bankruptcy and is no
longer involved in the company.
The Chapter 11 plan has been accepted by more than 95% of voting
creditors. The Company estimated that unsecured creditors will
collect 11% to 18% of what they are owed. Secured lenders
required TMP to pay them off earlier this year, helping cause the
business to shut down. Unsecured creditors, asserting $112
million in claims, formed an ad hoc committee to negotiate the
Chapter 11 plan. The Ad Hoc Committee consists of AT&T Yellow
Pages Holdings LLC; Genesis Publisher Services, SuperMedia LLC,
Dex One Corporation, Directory Publishing Solutions Inc., Local
Insight Media Holdings Inc., National Solutions, Inc., Yellowbook,
Inc., and Names and Numbers. Other members may be added from time
to time.
TMP's petition disclosed assets of $65.3 million, with debt
totaling $134.8 million. Among the debt, $132.9 million is
unsecured. James A. Stempel, Esq., and Ryan Blaine Bennett, Esq.,
at Kirkland & Ellis LLP; and Domenic E. Pacitti, Esq., and Morton
Branzburg, Esq., at Klehr Harrison Harvey Branzburg LLP, serve as
the Debtors' counsel. CRG Partners Group LLC serves as the
Debtors' restructuring advisors. The petition was signed by
Timothy P. Nugent, vice president, assistant secretary, and
assistant treasurer.
Affiliates filing for bankruptcy are TMP DM, Inc. (Case No.
11-13836) and TMP DM, LLC (Case No. 11-13837).
General Electric Capital Corp., as agent to the prepetition
lenders, is represented by: Peter Knight, Esq., at Latham &
Watkins LLP, and Eric Lopez Schnabel, Esq., at Dorsey & Whitney
LLP. Lender CapitalSource is represented by Mary Bucci, Esq., at
Brown Rudnick LLP, and Jeffrey C. Wisler, Esq., at Connolly Bove
Lodge & Hutz LLP. The Ad Hoc Committee is represented by Brett H.
Miller, Esq., and William M. Hildbold, Esq., at Morrison &
Foerster LLP.
TMP DIRECTIONAL: Rejects Leases for Vacant Office Spaces
--------------------------------------------------------
TMP Directional Marketing LLC wants to walk away from certain
unexpired non-residential real property leases for vacant office
space, saying the Debtors are consolidating office space as part
of their wind-down process and have determined that they no longer
need the leases. The Debtors have stopped paying the rent
required by the leases, which results in the Debtors incurring
$206,437 per month in additional unsecured claims against their
estates.
About TMP Directional Marketing
TMP Directional Marketing LLC, along with affiliates, filed for
bankruptcy (Bankr. D. Del. Case No. 11-13835) with plans to
liquidate its remaining assets according to a prepackaged plan.
TMP specialized in placing ads in the yellow pages of local
telephone books. Before ceasing substantially all of operations in
early April 2011, TMP was one of the leading providers of directed
search marketing in the United States, employing nearly 400 people
in 10 offices throughout the country.
TMP was spun off from Monster Worldwide Inc. Audax Group acquired
TMP in the 2005 spinoff. Monster isn't in bankruptcy and is no
longer involved in the company.
The Chapter 11 plan has been accepted by more than 95% of voting
creditors. The Company estimated that unsecured creditors will
collect 11% to 18% of what they are owed. Secured lenders
required TMP to pay them off earlier this year, helping cause the
business to shut down. Unsecured creditors, asserting $112
million in claims, formed an ad hoc committee to negotiate the
Chapter 11 plan. The Ad Hoc Committee consists of AT&T Yellow
Pages Holdings LLC; Genesis Publisher Services, SuperMedia LLC,
Dex One Corporation, Directory Publishing Solutions Inc., Local
Insight Media Holdings Inc., National Solutions, Inc., Yellowbook,
Inc., and Names and Numbers. Other members may be added from time
to time.
TMP's petition disclosed assets of $65.3 million, with debt
totaling $134.8 million. Among the debt, $132.9 million is
unsecured. James A. Stempel, Esq., and Ryan Blaine Bennett, Esq.,
at Kirkland & Ellis LLP; and Domenic E. Pacitti, Esq., and Morton
Branzburg, Esq., at Klehr Harrison Harvey Branzburg LLP, serve as
the Debtors' counsel. CRG Partners Group LLC serves as the
Debtors' restructuring advisors. Epiq Bankruptcy Solutions LLC
serves as claims and balloting agent. The petition was signed by
Timothy P. Nugent, vice president, assistant secretary, and
assistant treasurer.
Affiliates filing for bankruptcy are TMP DM, Inc. (Case No.
11-13836) and TMP DM, LLC (Case No. 11-13837).
General Electric Capital Corp., as agent to the prepetition
lenders, is represented by: Peter Knight, Esq., at Latham &
Watkins LLP, and Eric Lopez Schnabel, Esq., at Dorsey & Whitney
LLP. Lender CapitalSource is represented by Mary Bucci, Esq., at
Brown Rudnick LLP, and Jeffrey C. Wisler, Esq., at Connolly Bove
Lodge & Hutz LLP. The Ad Hoc Committee is represented by Brett H.
Miller, Esq., and William M. Hildbold, Esq., at Morrison &
Foerster LLP.
TOPSPIN MEDICAL: Posts NIS822,000 Net Loss in Third Quarter
-----------------------------------------------------------
Topspin Medical, Inc., filed its quarterly report on Form 10-Q,
reporting a net loss of NIS822,000 for the three months ended
Sept. 30, 2011, compared with a net loss of NIS420,000 for the
same period of 2010.
For the nine months ended Sept. 30, 2011, the Company has reported
a net loss of NIS2.2 million, compared to a net loss of
NIS1.9 million for the corresponding period last year.
The Company has not recorded any revenues from operations since
the time of its inception in September 1999.
The Company's balance sheet at Sept. 30, 2011, showed
NIS9.6 million in total assets, NIS3.9 million in current
liabilities, and stockholders equity of NIS5.7 million.
Since the suspension of the Company's operational activity in
October 2008, the Company is not engaged in any operational
activity. Additionally, in January 2010, Company's management
decided to suspend the support in protection of its intellectual
property (registered patents and patent applications).
The Company has not generated any revenues and has not achieved
profitable operations or positive cash flows from operations. The
Company has an accumulated deficit of NIS186.7 million as of
Sept. 30, 2011, and it incurred a net loss of NIS2.2 million and
negative cash flows from operating activities in the amount of
NIS2.1 million for the nine months ended Sept. 30, 2011.
"There is uncertainty about the Company's ability to generate
revenues or raise sufficient funds in the near term, if any," the
Company said in the filing. "These factors, among other factors
raise substantial doubt about the Company's ability to continue as
a going concern."
A complete text of the Form 10-Q is available for free at:
http://is.gd/KM60NF
Topspin Medical, Inc., was incorporated in Delaware on Sept, 20,
1999. The Company has conducted all of its business operations
through its wholly owned Israeli subsidiary, TopSpin Medical
(Israel) Ltd. TopSpin Israel was incorporated on Oct. 5, 1999, to
engage in research and development of MRI technology using
miniaturized MRI sensors.
Until the Company suspended its activities due to financial
considerations in October 2008, it was engaged through TopSpin
Israel in the design, research, development and manufacture of
imaging devices that utilize MRI technology by means of miniature
probes for various body organs.
On July 12, 2010, in accordance with the Loan Agreement with
Medgenesis Partners Ltd., pursuant to which Medgenesis agreed to
loan the Company a total of US$353,804, the Company filed a
voluntary petition for relief under Chapter 11 with the U.S.
Bankruptcy Court for the District of Delaware (Case No. 10-12213).
As part of the Plan that the Company submitted to the Bankruptcy
Court, the Company requested that the Bankruptcy Court approve an
increase in its registered capital, a reverse split of the
Company's reorganized Common Stock and the conversion of the
outstanding Funds into Company's shares of Common Stock.
The Bankruptcy Court confirmed the Debtor's Plan on Dec. 20, 2010.
Pursuant to the plan prepared by the Company and approved by the
Bankruptcy Court, the Company has issued 10,122,463 shares of
Common Stock to Medgenesis as repayment of a debt of US$484,000.
TRAILER BRIDGE: US Trustee Forms Three-Member Creditor's Committee
------------------------------------------------------------------
Donald F. Walton, United States Trustee for Region 21, appointed
three creditors to serve on an Official Committee of Unsecured
Creditors for Trailer Bridge Inc.
The members of the Committee are:
1) Earl W. Colvard, Inc.
c/o Michael Drungell,
Manager Commerial Operations
816 S. Woodland Blvd.
DeLand, Fl 323720
Tel: 386-734-6447
Fax: 386-734-5969
E-mail: rphelps@boulevardtire.com
2) First Coast Express, Inc.
c/o Merin Perkeci, President
5724 St. Augustine Road
Jacksonville, FL 32207
Tel: 904-448-4011
Fax: 904-448-4014
E-mail: perkecim@bellsouth.net
3) Railport Services, Inc.
c/o Michael P. Williams, General Counsel
11437 Central Parkway, Ste. 102
Jacksonville, FL 32224
Tel: 904-407-1691
Fax: 866-954-7176
E-mail: Mike.Williams@suntecktransport.net
Official creditors' committees have the right to employ legal and
accounting professionals and financial advisors, at the Debtor's
expense. They may investigate the Debtor's business and financial
affairs. Importantly, official committees serve as fiduciaries to
the general population of creditors they represent. Those
committees will also attempt to negotiate the terms of a
consensual Chapter 11 plan -- almost always subject to the terms
of strict confidentiality agreements with the Debtors and other
core parties-in-interest. If negotiations break down, the
Committee may ask the Bankruptcy Court to replace management with
an independent trustee. If the Committee concludes reorganization
of the Debtor is impossible, the Committee will urge the
Bankruptcy Court to convert the Chapter 11 cases to a liquidation
proceeding.
About Trailer Bridge
Jacksonville, Fla.-based Trailer Bridge, Inc.
-- http://www.trailerbridge.com/-- provides integrated trucking
and marine freight service to and from all points in the lower 48
states and Puerto Rico and Dominican Republic. This total
transportation system utilizes its own trucks, drivers, trailers,
containers and U.S. flag vessels to link the mainland with Puerto
Rico via marine facilities in Jacksonville, San Juan and Puerto
Plata.
Trailer Bridge filed a voluntary Chapter 11 petition (Bankr. M.D.
Fla. Case No. 11-08348) on Nov. 16, 2011, one day after its
$82.5 million 9.25% Senior Secured Notes became due.
Judge Jerry A. Funk presides over the case. Gardner F. Davis,
Esq., at Foley & Lardner LLP, and DLA Piper LLP (US) serve as the
Debtor's counsel. Global Hunter Securities LLC serves as the
Debtor's investment banker. RAS Management Advisors LLC serves as
the Debtor's financial advisor. In its petition, the Debtor
estimated $100 million to $500 million in assets and debts. The
petition was signed by Mark A. Tanner, co-chief executive officer.
TRAILER BRIDGE: Claims Bar Date Hearing on Dec. 14
--------------------------------------------------
Greg Johnson at Transport Topics reports that Judge Jerry Funk of
the U.S. Bankruptcy Court for the Middle District of Florida in
Jacksonville will set a deadline for creditors to file claims at a
Dec. 14 hearing.
The report relates that Judge Funk is also expected to approve
Trailer Bridge's payment of prepetition shipping and delivery
charges and the hiring of RAS Management Advisors LLC as financial
adviser and Global Hunter Securities LLC as investment banker.
"Bankruptcy Judge Funk has already granted all debtors' first-day
motions, including payments to critical vendors," debtor counsel
Gardner Davis of Foley & Lardner LLP told Transport Topics.
"We're looking for a speedy resolution," the report quotes Judge
Funk as saying.
The report relates that the Company has said it hopes to emerge
from Chapter 11 in the 2012 first quarter.
The report says Judge Funk has granted preliminary approval for
Trailer Bridge's $15 million debtor-in-possession loan from
Whippoorwill Associates Inc., White Plains, N.Y. The loan is
priced at 7% and increases to 9% in the event of a default,
according to SEC filings. Trailer Bridge also paid a 4%
nonrefundable fee of the loan amount.
About Trailer Bridge
Jacksonville, Fla.-based Trailer Bridge, Inc.
-- http://www.trailerbridge.com/-- provides integrated trucking
and marine freight service to and from all points in the lower 48
states and Puerto Rico and Dominican Republic. This total
transportation system utilizes its own trucks, drivers, trailers,
containers and U.S. flag vessels to link the mainland with Puerto
Rico via marine facilities in Jacksonville, San Juan and Puerto
Plata.
Trailer Bridge filed a voluntary Chapter 11 petition (Bankr. M.D.
Fla. Case No. 11-08348) on Nov. 16, 2011, one day after its
$82.5 million 9.25% Senior Secured Notes became due.
Judge Jerry A. Funk presides over the case. Gardner F. Davis,
Esq., at Foley & Lardner LLP, and DLA Piper LLP (US) serve as the
Debtor's counsel. Global Hunter Securities LLC serves as the
Debtor's investment banker. RAS Management Advisors LLC serves as
the Debtor's financial advisor. In its petition, the Debtor
estimated $100 million to $500 million in assets and debts. The
petition was signed by Mark A. Tanner, co-chief executive officer.
TRAILER BRIDGE: Business As Usual While in Chapter 11
-----------------------------------------------------
On Dec. 5, 2011, Trailer Bridge, Inc., sent a letter to its
employees, customers and vendors highlighting certain of the
Company's operations and other events since the filing of a
voluntary petition for relief under Chapter 11 of the Bankruptcy
Code in the U.S. Bankruptcy Court for the Middle District of
Florida on Nov. 16, 2011. The form of the of the letter is as
shown below:
Almost two weeks have passed since we filed for Chapter 11
protection under the Federal Bankruptcy Code. During that time we
have received the support of our customers, vendors and employees
and maintained our operations seamlessly for the benefit of our
shareholders and creditors.
Among the matters to highlight:
? We have maintained the support of our customers allowing
us to continue to have improved capacity utilization.
? We continue to renew contracts with customers for 2012.
? We have secured financing for the Chapter 11 process and
maintain strong cash balances.
? We are paying our operating expenses on time while
maintaining our vendor relationships and establishing new
vendor relationships.
? We are actively seeking input from our vendors to help us
make our operations even more efficient.
? Our employees have worked tirelessly to maintain our
service levels during a period where we have had high
capacity utilization and added work due to the Chapter 11
filing.
? After delays caused by weather last month this week we
reset our vessel schedules and by next week we will have
all of our vessels back on their normal schedule.
? We have had two court hearings and secured a number of
necessary and helpful orders from the court.
? We continue to work with creditors to work towards our
exit from Chapter 11.
? We filed our third quarter Form 10-Q and issued a release
of our results for the period.
? Our stock continues to trade on a daily basis.
We thank each of the constituencies named above and ask for your
continued support as we move forward towards a stronger balance
sheet and stronger company via this process.
About Trailer Bridge
Jacksonville, Fla.-based Trailer Bridge, Inc.
-- http://www.trailerbridge.com/-- provides integrated trucking
and marine freight service to and from all points in the lower 48
states and Puerto Rico and Dominican Republic. This total
transportation system utilizes its own trucks, drivers, trailers,
containers and U.S. flag vessels to link the mainland with Puerto
Rico via marine facilities in Jacksonville, San Juan and Puerto
Plata.
Trailer Bridge filed a voluntary Chapter 11 petition (Bankr. M.D.
Fla. Case No. 11-08348) on Nov. 16, 2011, one day after its
$82.5 million 9.25% Senior Secured Notes became due.
Judge Jerry A. Funk presides over the case. Gardner F. Davis,
Esq., at Foley & Lardner LLP, and DLA Piper LLP (US) serve as the
Debtor's counsel. Global Hunter Securities LLC serves as the
Debtor's investment banker. RAS Management Advisors LLC serves as
the Debtor's financial advisor. In its petition, the Debtor
estimated $100 million to $500 million in assets and debts. The
petition was signed by Mark A. Tanner, co-chief executive officer.
ULTIMATE ESCAPES: Amended Ch. 11 Liquidation Plan Confirmed
-----------------------------------------------------------
BankruptcyData.com reports that the U.S. Bankruptcy Court
confirmed Ultimate Escapes' Amended Chapter 11 Plan of Liquidation
dated August 23, 2011.
On Oct. 6, 2011, the U.S. Bankruptcy Court for the District of
Delaware approved the disclosure statement explaining Ultimate
Escapes' Plan. As reported by the Troubled Company Reporter on
Sept. 27, 2011, a cornerstone of the Plan is the implementation of
a settlement between the Debtors, CapitalSource, and each of their
respective affiliates. The CapitalSource Settlement has been
incorporated into the Plan, under which the final $300,000 of
financing approved under the Final DIP Order will be funded on the
Effective Date and apply to satisfy Allowed Administrative Claims,
including any Deferred Professional Compensation Claim.
CapitalSource is the Prepetition Secured Lender as well as the DIP
Lender.
The Plan contemplates the transfer of any "remaining assets,"
which include available cash and any causes of action, to a
Liquidating Trust. The liquidating trustee will make
distributions to the creditors pursuant to the Plan.
The Plan designates six Classes of Claims and Interests. Under
the Plan, claimants in Classes 1, 2 and 3 are unimpaired, while
Claimants in Classes 4 and 5 are impaired. Holders of Class 6
interests are deemed to reject the Plan.
Pursuant to the Plan, holders of the Class 1 Allowed Prepetition
Secured Lender Claim will receive 100% payment from the proceeds
from the sale of substantially all of the Debtors' Assets.
Pursuant to the CapitalSource Settlement, the Allowed Postpetition
Secured Lender Claim in Class 2 is deemed satisfied is full, and
the DIP Lender is not entitled to vote on account of its Class 2
Claims.
Holders of Allowed Tax and Other Priority claims in Class 3 will
likewise be paid 100% of their claims.
Holders of Allowed Other Secured Claims in Class 4 will receive,
at the option of the Debtors or the Liquidating Trustee, one of
the following forms of treatment: (a) full payment in Cash; (b)
the Debtors will abandon the property; or (c) such other treatment
as the Holder and the Debtors or the Liquidating Trustee will have
agreed upon in writing; or (d) such Holder will retain its lien
securing its Allowed Class 4 Other Secured Claim.
Holders of Allowed General Unsecured Claims in Class will each
receive its Pro Rata Share of the Distribution. Estimated
recovery for this Class was not disclosed.
Holders of Class 6 Interests will not receive or retain any
Distribution under the Plan. Class 6 is presumed to have rejected
the Plan.
The black-lined copy of the Disclosure Statement is available for
free at: http://bankrupt.com/misc/ultimateexcapes.blacklineDS.pdf
A copy of the original Disclosure Statement is available for free
at http://bankrupt.com/misc/ultimateescapes.DS.pdf
About Ultimate Escapes
Ultimate Escapes, Inc. -- http://www.ultimateescapes.com/-- was a
luxury destination club that sold club memberships offering
members reservation rights to use its vacation properties, subject
to the rules of the club member's Club Membership Agreement. The
Company's properties are located in various resort locations
throughout the world.
Kissimmee, Florida-based Ultimate Escapes Holdings, LLC, filed for
Chapter 11 bankruptcy protection (Bankr. D. Del. Case No.
10-12915) on Sept. 20, 2010. Affiliates Ultimate Resort, LLC;
Ultimate Operations, LLC; Ultimate Resort Holdings, LLC; Ultimate
Escapes, Inc. (fka Secure America Acquisition Corporation); P & J
Partners, LLC; UE Holdco, LLC; UE Member, LLC, et al., filed
separate Chapter 11 petitions.
Scott D. Cousins, Esq., Sandra G. M. Selzer, Esq., and Nancy A.
Mitchell, Esq., at Greenberg Traurig LLP, assist the Debtors in
their restructuring efforts. CRG Partners Group LLC is the
Debtors' chief restructuring officer. BMC Group Inc. is the
Company's claims and notice agent.
Christopher A. Ward, Esq., Shanti M. Katona, Esq., and Peter W.
Ito, Esq., at Polsinelli Shughart PC, represent the Creditors
Committee.
Ultimate Escapes estimated assets at $10 million to $50 million
and debts at $100 million to $500 million as of the Petition Date.
VON ESSEN: Patron, Halcyon Buy 7 Hotels For GBP38 Million
---------------------------------------------------------
Pete Brush at Bankruptcy Law360 reports that real estate-focused
private equity firm Patron Capital Ltd. said Dec. 8 that it has
teamed up with the newly formed Halcyon Hotels and Resorts PLC in
the GBP38 million ($59 million) purchase of seven U.K. hotels from
the insolvent Von Essen Group.
Law360 relates that the London-headquartered Patron is ponying up
95% of the investment money while Halycon, whose CEO Nigel Chapman
used to own four of the properties before selling them to Von
Essen in 2005, said his company is committed to "returning them to
their former glory."
As reported in the Troubled Company Reporter-Europe on April 25,
2011, the holding company of the von Essen hotel chain appointed
accountants Ernst & Young as administrators. SoGlos.com related
that von Essen had debts of more than GBP25 million. SoGlos.com
noted the hotels were all expected to continue to trade as usual.
USEC INC: Mary Pat Salomone Elected to Board to Fill Vacancy
------------------------------------------------------------
Under the securities purchase agreement dated as of May 25, 2010,
by and among USEC Inc., Toshiba Corporation, and Babcock & Wilcox
Investment Company, a subsidiary of The Babcock & Wilcox Company,
and related transaction documents, Toshiba America Nuclear Energy
Corporation, a subsidiary of Toshiba, and Babcock & Wilcox
Investment Company, as the holders of the Series B-1 12.75%
Convertible Preferred Stock, have the right to elect a total of
two directors of USEC. Effective Dec. 8, 2011, Michael S. Taff,
Senior Vice President and Chief Financial Officer of B&W, resigned
from the Board of Directors of USEC in connection with his
departure from B&W. Mr. Taff has been a director of USEC since
September 2010.
Effective Dec. 8, 2011, Mary Pat Salomone, Senior Vice President
and Chief Operating Officer of B&W, was elected to USEC's Board of
Directors to fill the vacancy created by the departure of Mr.
Taff. Ms. Salomone will serve on USEC's Technology and
Competition Committee.
Ms. Salomone, age 51, has served as Senior Vice President and
Chief Operating Officer of B&W since January 2010. She served as
Manager of Business Development for Babcock & Wilcox Nuclear
Operations Group, Inc., from January 2009 until January 2010.
Previously, she was Manager of Strategic Acquisitions for B&W NOG
from January 2008 to January 2009. From 1998 through December
2007, Ms. Salomone served as an officer of Marine Mechanical
Corporation, which was acquired by B&W in May 2007, including as
President and Chief Executive Officer from 2001 through 2007. Ms.
Salomone previously served with two of B&W's operating divisions,
Nuclear Equipment Division and Fossil Power Division, from 1982
until 1998, in a variety of positions, including Manager of Navy
Contracts, Project Manager and Manager of Quality Assurance
Engineering.
USEC, B&W and Toshiba are parties to the securities purchase
agreement, an investor rights agreement and a strategic
relationship agreement and other agreements or arrangements. B&W
and Toshiba are preferred stockholders of the Company. Effective
May 1, 2011, American Centrifuge Holdings, LLC, a wholly owned
subsidiary of the Company, and Babcock & Wilcox Technical Services
Group, Inc., a subsidiary of B&W, completed the effectiveness of
American Centrifuge Manufacturing, LLC, a joint company for the
manufacture and assembly of AC100 centrifuge machines for the
Company's American Centrifuge project.
About USEC Inc.
Headquartered in Bethesda, Maryland, USEC Inc. (NYSE: USU) --
http://www.usec.com/-- supplies enriched uranium fuel for
commercial nuclear power plants.
The Company reported a net loss of $44.70 million on $1.21 billion
of total revenue for the nine months ended Sept. 30, 2011,
compared with a net loss of $1.50 million on $1.37 billion of
total revenue for the same period a year ago.
The Company's balance sheet at Sept. 30, 2011, showed $4.04
billion in total assets, $2.72 billion in total liabilities and
$1.32 billion in stockholders' equity.
* * *
USEC Inc. carries 'Caa1' corporate and probability of default
ratings, with "developing" outlook, from Moody's, and 'CCC+' long
term foreign issuer credit rating and 'CCC-' long term local
issuer credit rating, with outlook "developing", from Standard &
Poor's.
In May 2010, S&P said that its rating and outlook on USEC Inc. are
not affected by the announcement that Toshiba Corp. and Babcock &
Wilcox Investment Co., an affiliate of The Babcock & Wilcox Co.,
have signed a definitive investment agreement for $200 million
with USEC.
VALLEY FORGE: Posts $423,700 Net Loss in Third Quarter
------------------------------------------------------
Valley Forge Composite Technologies, Inc., filed its quarterly
report on Form 10-Q, reporting a net loss of $423,766 on
$1.8 million of sales for the three months ended Sept. 30, 2011,
compared with a net loss of $747,498 on $4.7 million of sales for
the same period of 2010.
For the nine months ended Sept. 30, 2011, the Company has reported
a net loss of $143,516 on $11.3 million of sales, compared with a
net loss of $1.0 million on $12.9 million of sales for the same
period last year.
The Company's balance sheet at Sept. 30, 2011, showed $8.1 million
in total assets, $6.5 million in current liabilities, and
stockholders' equity of $1.6 million.
As reported in the TCR on April 21, 2011, R.R. Hawkins &
Associates International, PSC, in Los Angeles, expressed
substantial doubt about Valley Forge Composite's ability
to continue as a going concern, following the Company's 2010
results. The independent auditors noted that the Company has
incurred net losses since inception.
A copy of the Form 10-Q is available for free at:
http://is.gd/HAmkXu
Covington, Ky.-based Valley Forge Composite Technologies, Inc.,
has, in recent years, focused much of its energy on the
development and commercialization of its counter-terrorism
products. Such products include an advanced detection capability
for illicit narcotics, explosives, and bio-chemical weapons using
photo-nuclear reactions to initiate secondary gamma quanta the
result of which is a unique and distinguishable signal identifying
each component of a substance. This product is known as the THOR
LVX photonuclear detection system ("THOR"). The development of
the THOR advanced explosives detection system was completed in
Russia in 2009. The Company is currently focused on being able to
assemble a demonstration unit to further its efforts in marketing,
manufacturing and distribution of THOR in the United States and
other countries.
VILLA D'ESTE: Hires Elaine Etingoff as Bankruptcy Counsel
---------------------------------------------------------
Villa D'Este LP asks for permission from the U.S. Bankruptcy Court
for the District of California to employ Elaine D. Estingoff,
Esq., as restructuring and bankruptcy counsel.
Upon retention, the lawyer will, among other things:
a. advise the Debtor with respect to its powers and duties as
Debtor and a debtor-in-possession in the continued
management and operation of its business and properties;
b. advise and consult on the conduct of this Chapter 11 Case,
including all of the legal and administrative requirements
of operating in chapter 11; and
c. attend meetings and negotiate with representative of
creditors and of Debtor's employees and other parties
interested.
Ms. Estingoff's firm will bill for her services at $300 per hour
and for any paralegal at $100 per hour.
Dililp K. Ram, Operating Manager of the General Partner, attests
that the firm is a "disinterested person" as the term
is defined in Section 101(14) of the Bankruptcy Code.
About Villa D'Este
Villa D'Este LP, in Los Angeles, California, filed for Chapter 11
bankruptcy (Bankr. C.D. Calif. Case No. 11-21488) on Sept. 28,
2011. Judge Victoria S. Kaufman presides over the case. The Law
Office of Elaine D. Etingoff -- elaineetingoff@gmail.com -- serves
as the Debtor's counsel. In its petition, the Debtor estimated
$10 million to $50 million in assets and debts. The petition was
signed by Phillip Ram, operating manager of general partner.
Affiliates that previously filed separate Chapter 11 petitions
are: Norman Salter (Bankr. C.D. Calif. Case No. 09-11653) on Feb.
17, 2009; and Phillip Ram, aka Dilip K. Ram (Bankr. C.D. Calif.
Case No. 09-10969) on Jan. 21, 2009.
Secured lender Bank of America is represented by Patricia H. Lyon,
Esq., and Celine Mui, Esq. -- phlyon@frenchandlyon.com and
cmui@frenchandlyon.com -- at French & Lyon PC.
VITRO SAB: Judge Deals Blow, Says Bonds Governed By N.Y. Law
------------------------------------------------------------
Dow Jones' Daily Bankruptcy Review reports that a fight between
Vitro, S.A.B. de C.V. and its creditors is heating up, as a New
York judge ruled that the Mexican glass maker must honor more than
$1 billion in debt obligations to a group of disgruntled
bondholders.
About Vitro SAB
Headquartered in Monterrey, Mexico, Vitro, S.A.B. de C.V. (BMV:
VITROA; NYSE: VTO), through its two subsidiaries, Vitro Envases
Norteamerica, SA de C.V. and Vimexico, S.A. de C.V., is a global
glass producer, serving the construction and automotive glass
markets and glass containers needs of the food, beverage, wine,
liquor, cosmetics and pharmaceutical industries.
Vitro is the largest manufacturer of glass containers and flat
glass in Mexico, with consolidated net sales in 2009 of MXN23,991
million (US$1.837 billion).
Vitro defaulted on its debt in 2009, and sought to restructure
around US$1.5 billion in debt, including US$1.2 billion in notes.
Vitro launched an offer to buy back or swap US$1.2 billion in debt
from bondholders. The tender offer would be consummated with a
bankruptcy filing in Mexico and Chapter 15 filing in the United
States. Vitro said noteholders would recover as much as 73% by
exchanging existing debt for cash, new debt or convertible bonds.
Concurso Mercantil & Chapter 15 Proceedings
Vitro SAB on Dec. 13, 2010, filed its voluntary petition for a
pre-packaged Concurso Plan in the Federal District Court for
Civil and Labor Matters for the State of Nuevo Leon, commencing
its voluntary concurso mercantil proceedings -- the Mexican
equivalent of a prepackaged Chapter 11 reorganization. Vitro SAB
also commenced parallel proceedings under Chapter 15 of the U.S.
Bankruptcy Code (Bankr. S.D.N.Y. Case No. 10-16619) in Manhattan
on Dec. 13, 2010, to seek U.S. recognition and deference to its
bankruptcy proceedings in Mexico.
Early in January 2011, the Mexican Court dismissed the Concurso
Mercantil proceedings. The judge said Vitro couldn't push through
a plan to buy back or swap US$1.2 billion in debt from bondholders
based on the vote of US$1.9 billion of intercompany debt when
third-party creditors were opposed. Vitro as a result dismissed
the first Chapter 15 petition following the ruling by the Mexican
court.
On April 12, 2011, an appellate court in Mexico reinstated the
reorganization. Accordingly, Vitro SAB on April 14 re-filed a
petition for recognition of its Mexican reorganization in U.S.
Bankruptcy Court in Manhattan (Bankr. S.D.N.Y. Case No. 11-
11754).
The Vitro parent told the Mexico stock exchange that it received
sufficient acceptances of its reorganization pending in a court in
Monterrey. The approval vote was evidently obtained using claims
of affiliates. The bondholders are opposing the Mexican
reorganization plan because shareholders could retain ownership
while bondholders aren't being paid in full. Bondholders
previously cited an "independent analyst" who estimated the
Mexican plan was worth 49% to 54% of creditors'
claims.
In the present Chapter 15 case, the Debtor seeks to block any
creditor suits in the U.S. pending the reorganization in Mexico.
Chapter 11 Proceedings
A group of noteholders opposed the exchange -- namely Knighthead
Master Fund, L.P., Lord Abbett Bond-Debenture Fund, Inc.,
Davidson Kempner Distressed Opportunities Fund LP, and Brookville
Horizons Fund, L.P. Together, they held US$75 million, or
approximately 6% of the outstanding bond debt. The Noteholder
group commenced involuntary bankruptcy cases under Chapter 11 of
the U.S. Bankruptcy Code against Vitro Asset Corp. (Bankr. N.D.
Tex. Case No. 10-47470) and 15 other affiliates on Nov. 17, 2010.
Vitro engaged Susman Godfrey, L.L.P. as U.S. special litigation
counsel to analyze the potential rights that Vitro may exercise in
the United States against the ad hoc group of dissident
bondholders and its advisors.
A larger group of noteholders, known as the Ad Hoc Group of Vitro
Noteholders -- comprised of holders, or investment advisors to
holders, which represent approximately US$650 million of the
Senior Notes due 2012, 2013 and 2017 issued by Vitro -- was not
among the Chapter 11 petitioners, although the group has expressed
concerns over the exchange offer. The group says the exchange
offer exposes Noteholders who consent to potential adverse
consequences that have not been disclosed by Vitro. The group is
represented by John Cunningham, Esq., and Richard Kebrdle, Esq. at
White & Case LLP.
The U.S. affiliates subject to the involuntary petitions are Vitro
Chemicals, Fibers & Mining, LLC (Bankr. N.D. Tex. Case No.10-
47472); Vitro America, LLC (Bankr. N.D. Tex. Case No. 10-47473);
Troper Services, Inc. (Bankr. N.D. Tex. Case No. 10-47474); Super
Sky Products, Inc. (Bankr. N.D. Tex. Case No. 10-47475); Super Sky
International, Inc. (Bankr. N.D. Tex. Case No. 10-47476); VVP
Holdings, LLC (Bankr. N.D. Tex. Case No. 0-47477); Amsilco
Holdings, Inc. (Bankr. N.D. Tex. Case No. 10-47478); B.B.O.
Holdings, Inc. (Bankr. N.D. Tex. Case No. 10-47479); Binswanger
Glass Company (Bankr. N.D. Tex. Case No. 10-47480); Crisa
Corporation (Bankr. N.D. Tex. Case No. 10-47481); VVP Finance
Corporation (Bankr. N.D. Tex. Case No. 10-47482); VVP Auto Glass,
Inc. (Bankr. N.D. Tex. Case No. 10-47483); V-MX Holdings, LLC
(Bankr. N.D. Tex. Case No. 10-47484); and Vitro Packaging, LLC
(Bankr. N.D. Tex. Case No. 10-47485).
A bankruptcy judge in Fort Worth, Texas, denied involuntary
Chapter 11 petitions filed against four U.S. subsidiaries. On
April 6, 2011, Vitro SAB agreed to put Vitro units -- Vitro
America LLC and three other U.S. subsidiaries -- that were subject
to the involuntary petitions into voluntary Chapter 11. The Texas
Court on April 21 denied involuntary petitions against the eight
U.S. subsidiaries that didn't consent to being in Chapter 11.
Kurtzman Carson Consultants is the claims and notice agent to
Vitro America, et al. Alvarez & Marsal North America LLC, is the
Debtors' operations and financial advisor.
The official committee of unsecured creditors appointed in the
Chapter 11 cases of Vitro America, et al., has selected Sarah
Link Schultz, Esq., at Akin Gump Strauss Hauer & Feld LLP, in
Dallas, Texas, and Michael S. Stamer, Esq., Abid Qureshi, Esq.,
and Alexis Freeman, Esq., at Akin Gump Strauss Hauer & Feld LLP,
in New York, as counsel. Blackstone Advisory Partners L.P. serves
as financial advisor to the Committee.
The U.S. Vitro companies sold their assets to American Glass
Enterprises LLC, an affiliate of Sun Capital Partners Inc., for
US$55 million.
VOICE ASSIST: Posts $1.3 Million Net Loss in Third Quarter
----------------------------------------------------------
Voice Assist, Inc., filed its quarterly report on Form 10-Q,
reporting a net loss of $1.3 million on $191,357 of revenues for
the three months ended Sept. 30, 2011, compared with a net loss of
$263,035 on $312,233 of revenues for the same period of 2010.
For the nine months ended Sept. 30, 2011, the Company has reported
a net loss of $7.3 million on $725,495 of revenues, compared with
a net loss of $335,799 on $986,083 of revenues for the same period
last year.
The Company's balance sheet at Sept. 30, 2011, showed $1.3 million
in total assets, $522,673 in total current liabilities, and
stockholders' equity of $750,332.
Mantyla McReynolds LLC, in Salt Lake City, Utah, expressed
substantial doubt about Voice Assist's ability to continue as a
going concern, following the Company's 2010 results. The
independent auditors noted that the Company has working capital
deficits and has incurred losses from operations and negative
operating cash flows during the years ended Dec. 31, 2010, and
2009.
A copy of the Form 10-Q is available for free at:
http://is.gd/HAIFoV
Lake Forest, California-based Voice Assist, Inc.
-- http://www.voiceassist.com/-- is a hosted speech services
provider offering cloud based speech recognition technology
designed to voice enable mobile applications.
WARNER MUSIC: Incurs $206 Million Net Loss in Fiscal 2011
---------------------------------------------------------
Warner Music Group Corp. filed with the U.S. Securities and
Exchange Commission its annual report on Form 10-K, reporting a
net loss of $31 million on $554 million of revenue from July 20,
2011, through Sept. 30, 2011(successor entity). The predecessor
entity reported a net loss of $175 million on $2.31 billion of
revenue from Oct. 1, 2010, through July 19, 2011.
The Company reported a net loss of $206 million on $2.86 billion
of revenue for the combined 12 months ended Sept. 30, 2011,
compared with a net loss of $145 million on $2.98 billion of
revenue for the fiscal year ended Sept. 30, 2010.
The Company's balance sheet as of Sept. 30, 2010, showed $5.46
billion in total assets, $4.35 billion in total liabilities and
$1.11 billion in total equity.
Pursuant to the Agreement and Plan of Merger, dated as of May 6,
2011, by and among the Company, AI Entertainment Holdings LLC and
an affiliate of Access Industries, Inc., and Airplanes Merger Sub,
Inc., a wholly owned subsidiary of Parent, on July 20, 2011,
Merger Sub merged with and into the Company with the Company
surviving as a wholly owned subsidiary of Parent.
"In the quarter and throughout the fiscal year, WMG continued to
perform," said Stephen Cooper, Warner Music Group's CEO. "The
company grew digital and '360' revenue, executed on its strategy
of establishing more comprehensive artist partnerships and
continued to position itself well for the opportunities that exist
in the rapidly evolving recorded music and music publishing
industries."
A full-text copy of the Form 10-K is available for free at:
http://is.gd/l0EB5H
About Warner Music Group
Based in New York, Warner Music Group Corp. (NYSE: WMG)
-- http://www.wmg.com/-- was formed by a private equity
consortium of investors on Nov. 21, 2003. The Company is the
direct parent of WMG Holdings Corp., which is the direct parent of
WMG Acquisition Corp. WMG Acquisition Corp. is one of the world's
major music-based content companies and the successor to
substantially all of the interests of the recorded music and music
publishing businesses of Time Warner Inc.
The Company classifies its business interests into two fundamental
operations: Recorded Music and Music Publishing. The Company's
Recorded Music business primarily consists of the discovery and
development of artists and the related marketing, distribution and
licensing of recorded music produced by such artists. The
Company's Music Publishing operations include Warner/Chappell, its
global Music Publishing company, headquartered in New York with
operations in over 50 countries through various subsidiaries,
affiliates and non-affiliated licensees.
* * *
In May 2011, Warner Music Group Corp. and Access Industries, the
U.S.-based industrial group, announced the execution of a
definitive merger agreement under which Access Industries will
acquire WMG in an all-cash transaction valued at $3.3 billion.
The purchase includes WMG's entire recorded music and music
publishing businesses.
WASHINGTON MUTUAL: May Reach Plan Accord Today, Counsel Says
------------------------------------------------------------
Lance Duroni at Bankruptcy Law360 reports that Washington Mutual
Inc. is making headway in mediation with creditors and
shareholders on the issues that sunk its reorganization plan, and
could mint a deal by Monday allowing for a third try at exiting
bankruptcy, an attorney for the holding company said Thursday.
According to Law360, Brian Rosen of Weil Gotshal & Manges LLP told
the Delaware bankruptcy court that the parties had been meeting
nonstop to forge a settlement that would set WMI on course for a
late February emergence from Chapter 11.
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.
WESTERN REFINING: S&P Raises Senior Secured Debt Rating to 'B+'
---------------------------------------------------------------
Standard & Poor's Ratings Services raised its issue ratings on
Western Refining Inc.'s (Western's) senior secured debt to 'B+'
from 'B' and revised the recovery ratings on this debt to '2',
indicating our expectation for substantial recovery (70% to 90%)
in the event of a payment default, from '3'.
The rating action reflects Western's planned redemption of its
$275 million senior secured floating rate notes and the resulting
improved recovery prospects for senior secured lenders due to a
reduction in debt outstanding. The action also incorporates the
divestiture of its Yorktown, Va. facility and crude oil pipeline
in southeast New Mexico, which Western agreed to sell for $220
million.
The rating on El Paso, Texas-based Western Refining (Western)
reflects the company's exposure to the cyclical and capital-
intensive refining industry, volatile operating margins, and a
high degree of operating leverage. Ratings also reflect its
adequate liquidity, decent proceeds from the sale of its Yorktown
facility, and the company's plans to pay down a portion of its
borrowings.
Ratings List
Western Refining Inc.
Corporate credit rating B/Stable/--
Rating Raised; Recovery Rating Revised
To From
Senior secured debt B+ B
Recovery rating 2 3
WOODMONT SHOPPING: Voluntary Chapter 11 Case Summary
----------------------------------------------------
Debtor: Woodmont Shopping Center I, LP
15 Maiden Lane, Suite 1405
New York, NY 10038
Bankruptcy Case No.: 11-15620
Chapter 11 Petition Date: December 5, 2011
Court: U.S. Bankruptcy Court
Southern District of New York (Manhattan)
Debtor's Counsel: Mark A. Frankel, Esq.
BACKENROTH FRANKEL & KRINSKY, LLP
489 Fifth Avenue
New York, NY 10017
Tel: (212) 593-1100
Fax: (212) 644-0544
E-mail: mfrankel@bfklaw.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
The Company did not file a list of creditors together with its
petition.
The petition was signed by Murray Sarway, manager of Woodmont
Shopping Center, LLC, general partner.
ZALE CORP: Incurs $31.8 Million Net Loss in October 31 Quarter
--------------------------------------------------------------
Zale Corporation filed with the U.S. Securities and Exchange
Commission its Quarterly Report on Form 10-Q reporting a net loss
of $31.87 million on $350.98 million of revenue for the three
months ended Oct. 31, 2011, compared with a net loss of $97.88
million on $327.03 million of revenue for the same period during
the prior year.
The Company reported a net loss of $112.30 million on
$1.74 billion of revenue for the year ended July 31, 2011,
compared with a net loss of $93.67 million on $1.61 billion of
revenue during the prior year.
The Company's balance sheet at Oct. 31, 2011, showed $1.31 billion
in total assets, $1.14 billion in total liabilities and $173.51
million total stockholders' investment.
A full-text copy of the Form 10-Q is available for free at:
http://is.gd/9kqahQ
About Zale Corporation
Based in Dallas, Texas, Zale Corporation (NYSE: ZLC) --
http://www.zalecorp.com/-- is a specialty retailer of diamonds
and other jewelry products in North America, operating
approximately 1,900 retail locations throughout the United States,
Canada and Puerto Rico, as well as online. Zale Corporation's
brands include Zales Jewelers, Zales Outlet, Gordon's Jewelers,
Peoples Jewellers, Mappins Jewellers and Piercing Pagoda. Zale
also operates online at http://www.zales.com/,
http://www.zalesoutlet.com/,
http://www.gordonsjewelers.com/and http://www.pagoda.com/
As reported by the Troubled Company Reporter on February 10, 2010,
The Deal.com's Sara Behunek reported that analysts said bankruptcy
looms for Zale if it fails to restructure its debt and put in
place a solid merchandising strategy.
ZALE CORP: Seven Directors Elected at Annual Meeting
----------------------------------------------------
Zale Corporation, on Dec. 2, 2011, held its annual meeting of
stockholders. At the Annual Meeting, stockholders elected Neale
Attenborough, Yuval Braverman, David F. Dyer, Kenneth B. Gilman,
Theo Killion, John B. Lowe, Jr., and Joshua Olshansky.
Stockholders approved the 2011 Omnibus Incentive Plan.
Stockholders approved the Company's executive compensation.
Majority of the shareholders voted on a proposal to conduct a non-
binding vote on executive compensation every year. The
appointment of Ernst & Young LLP as the Company's independent
registered public accounting firm for the fiscal year ending
July 31, 2012, was ratified.
The Board of Directors of the Company approved the Zale
Corporation 2011 Omnibus Incentive Compensation Plan on Sept. 23,
2011.
The 2011 Omnibus Incentive Plan provides for the grant to
officers, employees, and other service providers of the Company
and its affiliates of options to purchase shares of the Company's
common stock and other awards, which awards may be incentive stock
options, non-qualified stock options, stock appreciation rights,
restricted stock awards, restricted stock units, incentive awards,
other stock awards, dividend equivalents and cash awards. The
2011 Omnibus Incentive Plan replaces the Zale Corporation 2003
Stock Incentive Plan and the Zale Corporation Non-Employee
Director Equity Compensation Plan. Existing awards previously
granted under the 2003 Incentive Plan and the Director Plan will
continue to remain outstanding in accordance with their terms;
however, all future awards will be made under the 2011 Omnibus
Incentive Plan.
The maximum aggregate number of shares of Common Stock which may
be subject to Awards under the 2011 Omnibus Incentive Plan is (i)
2,385,000 shares of Common Stock minus (ii) that number of shares
of Common Stock that are represented by awards which were granted
after July 31, 2011, under the 2003 Incentive and the Director
Plan. If after July 31, 2011, awards granted under the 2003
Incentive Plan or the Director Plan subsequently expire or
otherwise lapse, are terminated or forfeited or are settled in
cash, or are exchanged, with the permission of the Company's
Compensation Committee, for awards not covering shares of Common
Stock, the shares of Common Stock subject to such awards will be
added to the maximum aggregate number of shares of Common Stock to
which Awards may be subject under the 2011 Omnibus Incentive Plan.
The 2011 Omnibus Incentive Plan provides for accelerated vesting
of Awards under certain circumstances in connection with a
participant's termination of employment or a Change in Control.
The Company's Board of Directors may amend or terminate the 2011
Omnibus Incentive Plan at any time; provided, however, that no
amendment may adversely impair the rights of a participant with
respect to outstanding Awards without the participant's consent.
An amendment will be contingent on approval of the Company's
stockholders, to the extent required by law, any tax or regulatory
requirement, by the rules of any stock exchange on which the
Company's securities are then traded or if the amendment would (a)
increase the benefits accruing to plan participants, including any
amendment to the 2011 Omnibus Incentive Plan or any agreement to
permit a repricing of any outstanding Awards, (b) increase the
aggregate number of shares of Common Stock issuable under the 2011
Omnibus Incentive Plan, (c) modify the eligibility requirements of
the 2011 Omnibus Incentive Plan, or (d) change the performance
criteria set forth in the 2011 Omnibus Incentive Plan for
performance-based awards.
About Zale Corporation
Based in Dallas, Texas, Zale Corporation (NYSE: ZLC) --
http://www.zalecorp.com/-- is a specialty retailer of diamonds
and other jewelry products in North America, operating
approximately 1,900 retail locations throughout the United States,
Canada and Puerto Rico, as well as online. Zale Corporation's
brands include Zales Jewelers, Zales Outlet, Gordon's Jewelers,
Peoples Jewellers, Mappins Jewellers and Piercing Pagoda. Zale
also operates online at http://www.zales.com/,
http://www.zalesoutlet.com/,
http://www.gordonsjewelers.com/and http://www.pagoda.com/
As reported by the Troubled Company Reporter on February 10, 2010,
The Deal.com's Sara Behunek reported that analysts said bankruptcy
looms for Zale if it fails to restructure its debt and put in
place a solid merchandising strategy.
The Company reported a net loss of $112.30 million on $1.74
billion of revenue for the year ended July 31, 2011, compared with
a net loss of $93.67 million on $1.61 billion of revenue during
the prior year.
The Company's balance sheet at Oct. 31, 2011, showed $1.31 billion
in total assets, $1.14 billion in total liabilities and $173.51
million total stockholders' investment.
* Blogger Can't Duck $2.5MM Verdict in Obsidian Case
----------------------------------------------------
Erin Coe at Bankruptcy Law360 reports that an Oregon federal judge
last month held that blogger Crystal Cox of Montana was not
entitled to certain protections intended for journalists, clearing
the way for a $2.5 million jury verdict against her for defaming
Obsidian Finance Group LLC and its co-founder, who had acted as a
trustee in a real estate bankruptcy proceeding.
* Fitch Reports Annual Outlook on U.S. Technology Sector
--------------------------------------------------------
Fitch Ratings has published its annual outlook on the U.S.
Technology sector. The report titled '2012 Outlook: U.S.
Technology' gives an overview of Technology sub-sectors hardware,
IT services, semi-conductors, distributors, electronic
manufacturing services, and transaction processors.
Fitch has a Stable Outlook on the U.S. Technology sector for 2012.
Fitch expects overall sector revenue growth to be flat to up low
single digits as pressure from a weak macro environment and
disruption from the Thailand flooding should be mitigated by
emerging markets, and increased demand for storage and software.
Key Themes and Concerns of Fitch's IT Outlook:
-- Given the state of the global economy and the sector's
increasing debt levels, there is limited ratings upside
potential in 2012.
-- Heading into 2012, the Investment Grade Technology sector is
marked by strong liquidity and, in many cases, debt capacity
at existing ratings. As such, Fitch believes these
Investment Grade Technology companies could withstand a
double-dip recession and still maintain existing ratings.
-- Additionally, Fitch would expect the majority of investment
grade ratings to withstand negative growth in Emerging
Markets. This is due to the sector's liquidity, portfolio
mix, competitive positions, general secular tailwinds, and,
for some, counter-cyclical cash flows. Under such a
scenario, negative pressure would likely occur on HP, Ingram
Micro, Western Union, and Texas Instruments.
-- The high-yield technology sector has a fairly clear maturity
schedule in 2012 (and 2013). However, since the last
recession, these companies have yet to generate the operating
leverage needed to organically delever. Another economic
downturn could make another round of restructurings
necessary.
-- Fitch expects merger and acquisition (M&A) activity to slow
in 2012. Many active acquirers have built out well-rounded
portfolios. Dell Inc. and Hewlett-Packard Co. [HP], for
example, now have storage, security, and networking making
them less likely to acquire in 2012. Software acquisitions,
particularly in cloud computing, software-as-a-service and
analytics, will continue to be active in 2012.
-- Fitch expects tablets to extend the replacement cycle of PCs.
This could result in working-capital unwinds for Dell and HP
unless they establish a competitive product. This could also
pressure HP's Imaging and Printing Group business. Microsoft
Corp., Advanced Micro Devices, Inc. (AMD) and Intel Corp.
will also be pressured to establish a competitive product.
-- From a downside risk perspective, HP is currently the only
company with a Negative Rating Outlook. It is Fitch's
expectation that HP will reduce debt by several billion
dollars in the next 12 - 18 months. HP's 'A' rating
partially takes into account the company's debt reduction
efforts after its EDS acquisition in 2009. Fitch believes HP
can maintain its 'A' rating with sustainable core leverage
below 1.25 times (x). However, failure to reduce absolute
debt levels over the next year could make Fitch less tolerant
within that range given the weak macro environment and the
secular challenges that could confront the Personal Systems
and Imaging and Printing businesses.
-- While HP is the only company with a Negative Outlook, CSC and
First Data both need to meet growth expectations over the
short-term or risk having their Outlooks revised to Negative.
Specifically, Fitch expects CSC to generate at least $500
million of free cash flow in their fiscal year 2012 and high-
single digit EBITDA growth for First Data. Finally, Texas
Instruments' decreasingly diversified portfolio and marginal
share losses in applications processors could put pressure on
its outlook over the next year.
-- Cash location and company fiscal policies may become a bigger
concern in 2012 depending on the state of the economy. The
risk continues to exist that Tech companies use up
significant portions of their liquidity and capacity on the
heels of a downturn. This concern is mitigated by the
sector's performance during the 2008 - 2009 downturn where
share repurchases were pulled back significantly and debt
reduced. Fitch would expect a similar dynamic to take place
in another downturn.
A list of Fitch-rated issuers in the U.S. technology sector and
their current Issuer Default Ratings (IDRs) and Rating Outlooks
follows:
-- Accenture Plc. ('A+'; Stable);
-- Advanced Micro Devices, Inc. ('B'; Positive)
-- Agilent Technologies Inc. ('BBB+'; Stable);
-- Anixter Inc. ('BB+'; Stable);
-- Anixter International Inc. ('BB+'; Stable);
-- Arrow Electronics, Inc. ('BBB-'; Stable);
-- Avnet, Inc. ('BBB-'; Stable);
-- Broadridge Financial Solutions ('BBB+'; Stable);
-- CA Inc. ('BBB+'; Stable);
-- Computer Sciences Corp. ('BBB+'; Stable);
-- Convergys Corp. ('BBB-'; Stable);
-- Corning Incorporated ('A-'; Stable);
-- Dell Inc. ('A'; Stable);
-- eBay, Inc. ('A'; Stable);
-- First Data Corp. ('B'; Stable);
-- Fidelity National Information Services Inc. ('BB+'; Stable);
-- Flextronics International Ltd. ('BBB-'; Stable);
-- Freescale Semiconductor, Inc. ('CCC'; Positive);
-- Hewlett-Packard Company ('A'; Negative);
-- Ingram Micro Inc. ('BBB-'; Stable);
-- International Business Machines Corp. ('A+'; Stable);
-- International Rectifier Corp. ('BB'; Stable);
-- Jabil Circuit, Inc. ('BBB-'; Stable);
-- KLA-Tencor Corp. ('BBB'; Stable);
-- Microsoft Corp. ('AA+'; Stable);
-- Motorola, Inc. ('BBB'; Stable);
-- Oracle Corp. ('A+'; Stable);
-- Sanmina-SCI Corp. ('B+'; Positive);
-- Seagate Technology ('BB+'; Stable);
-- SunGard Data Systems Inc. ('B'; Stable);
-- Tech Data Corporation ('BB+'; Stable);
-- Texas Instruments Incorporated ('A+'; Stable);
-- The Western Union Company ('A-'; Stable);
-- TE Connectivity Ltd. ('BBB+'; Stable);
-- Xerox Corporation ('BBB'; Stable).
* Karyl Van Tassel Joins PwC as Advisory Forensics Practice Leader
------------------------------------------------------------------
PricewaterhouseCoopers disclosed that Karyl Van Tassel has joined
the firm's Advisory Practice as leader of Forensic Services in
Houston, TX. With 26 years of experience in audit, accounting,
tax, litigation, valuation and other financial advisory services,
Ms. Van Tassel is a recognized professional on forensic accounting
issues, economic damage claims, evaluation and remediation of
controls, and valuations of closely held business.
Ms. Van Tassel has been retained by many audit committees and
companies to assist in investigating allegations of accounting,
FCPA violations, and financial improprieties, including reporting
results to governmental agencies as necessary. She consults
regularly on FCPA and global anti-corruption matters, including
compliance program implementation and remediation of controls and
procedures related to misconduct. She has also performed detailed
financial analyses in a variety of litigation matters, including
securities, intellectual property, breach of contract, antitrust,
lender liability, fraud, forensic accounting and wrongful
terminations.
"The depth and breadth of Karyl's expertise - which spans
financial advisory services and myriad industries - makes her an
ideal addition to our Forensics practice," said Erik Skramstad,
PwC partner and U.S. Forensic Services practice leader. "We are
delighted she has joined our team and extend to her our warmest
welcome."
Prior to joining PwC, Ms. Van Tassel served as senior managing
director in the FTI Consulting, Inc.'s Forensic and Litigation
Consulting practice. She is also a former partner in KPMG's
Forensic Dispute Advisory Services practice and was a member of
the litigation and bankruptcy consulting divisions of two national
accounting firms. Additionally, early in her career, she provided
audit and tax services in a variety of industries.
Ms. Van Tassel has addressed various state and local bar
associations as well as other continuing legal education providers
on matters including anti-corruption issues, economic damage
analysis, forensic investigations, SEC updates, valuation, and
finance. Ms. Van Tassel earned a B.S. in Business Administration
with an emphasis in Accounting from the University of Northern
Colorado.
About PwC's Forensic Services
PwC Forensic Services team of experienced professionals is
dedicated to meeting the challenges caused by fraud allegations,
financial crimes and other irregularities. Our portfolio of
services includes: Financial Crime Examinations, Forensic
Technology Solutions, Regulatory Compliance Reviews, Fraud Risk
Management and Fraud Prevention, Dispute Analysis and Litigation
Support. The Forensic Services team also manages the PwC Fraud
Forum, an exclusive community where members can gain knowledge,
participate in events and share important insights on preventing,
detecting and investigating fraud, corruption and economic crime.
See www.pwc.com/us/forensics and http://usfraudforum.pwc.comfor
more information.
* Attorney Jeremy Colvin Joins McDonald Hopkins
-----------------------------------------------
Experienced litigator, Jeremy M. Colvin, has joined the West Palm
Beach office of McDonald Hopkins LLC, a business advisory and
advocacy law firm with more than 135 attorneys. As a commercial
litigator who represents financial institutions, Colvin has
considerable experience in the areas of securities litigation,
arbitration, and regulation. He frequently handles cases before
the Financial Industry Regulatory Authority (FINRA). Most
recently, Colvin was a shareholder with the Fowler White Burnett,
P.A. law firm.
Mr. Colvin, who is Of Counsel, is among eight attorneys who have
joined McDonald Hopkins in South Florida in recent months. The
80-year-old firm, which opened a Miami office in April of this
year, has had an office in West Palm Beach since 2004. "We are
delighted that Jeremy Colvin is enhancing our firm's strong
litigation team," said John T. Metzger, Managing Member of the
West Palm Beach office. "His commercial litigation expertise will
provide significant value to our clients in South Florida and
nationally."
For 13 years, Colvin has been defending brokerage firms,
registered representatives, and financial advisors in customer
disputes related to claims of breach of fiduciary duty,
negligence, fraud, violations of state and federal securities
laws, churning, unauthorized trading, over-concentration, and
unsuitability. Moreover, Colvin handles cases involving employee
raiding, non-competition agreements, non-solicitation, wrongful
termination, promissory notes, and other employment-related
disputes.
Colvin earned a J.D. from the Western New England College School
of Law in 1998 and a Bachelor of Arts degree from Siena College in
1995. He is AV rated as preeminent by Martindale-Hubbell and is
involved in a number of professional and civic organizations.
Jeremy M. Colvin
Tel: 561.472.2971
E-mail: jcolvin@mcdonaldhopkins.com.
About McDonald Hopkins
McDonald Hopkins is a business advisory and advocacy law firm
focused on business law, litigation, business restructuring and
bankruptcy, intellectual property, healthcare, and estate
planning. The firm has offices in Chicago, Cleveland, Columbus,
Detroit, Miami and West Palm Beach. The president of McDonald
Hopkins is Carl J. Grassi.
* BOND PRICING -- For Week From Dec. 5 - Dec. 9, 2011
-----------------------------------------------------
Company Coupon Maturity Bid Price
------- ------ -------- ---------
AHERN RENTALS 9.250 8/15/2013 20.063
AM AIRLN PT TRST 7.377 5/23/2019 15.000
AM AIRLN PT TRST 7.379 5/23/2016 17.500
AM AIRLN PT TRST 9.730 9/29/2014 23.750
AM AIRLN PT TRST 10.180 1/2/2013 60.250
AM-CALL12/11 7.375 6/1/2016 104.030
AMBAC INC 5.950 12/5/2035 13.000
AMBAC INC 7.500 5/1/2023 10.000
AMBAC INC 9.375 8/1/2011 10.000
AMBAC INC 9.500 2/15/2021 9.887
AMER GENL FIN 5.200 12/15/2011 100.000
AMERICAN ORIENT 5.000 7/15/2015 49.732
AMR CORP 6.250 10/15/2014 23.000
AMR CORP 9.000 8/1/2012 22.125
AMR CORP 9.000 9/15/2016 22.611
AMR CORP 9.750 8/15/2021 20.000
AMR CORP 9.800 10/1/2021 17.000
AMR CORP 9.880 6/15/2020 21.000
AMR CORP 10.000 4/15/2021 19.000
AMR CORP 10.150 5/15/2020 20.000
AMR CORP 10.200 3/15/2020 18.550
AMR CORP 10.290 3/8/2021 18.000
AMR CORP 10.550 3/12/2021 18.700
AQUILEX HOLDINGS 11.125 12/15/2016 44.000
BANK NEW ENGLAND 9.875 9/15/1999 14.000
BANKUNITED FINL 3.125 3/1/2034 6.500
CADENCE DESIGN 1.375 12/15/2011 99.282
CADENCE DESIGN 1.375 12/15/2011 100.000
CAPMARK FINL GRP 5.875 5/10/2012 50.500
CIRCUS & ELDORAD 10.125 3/1/2012 67.500
DELTA PETROLEUM 3.750 5/1/2037 75.000
DIRECTBUY HLDG 12.000 2/1/2017 23.000
DIRECTBUY HLDG 12.000 2/1/2017 20.875
DUNE ENERGY INC 10.500 6/1/2012 56.000
DYNEGY HLDGS INC 8.750 2/15/2012 69.000
EASTMAN KODAK CO 7.250 11/15/2013 46.125
EDDIE BAUER HLDG 5.250 4/1/2014 6.750
ENERGY CONVERS 3.000 6/15/2013 46.000
EVERGREEN SOLAR 13.000 4/15/2015 53.000
FAIRPOINT COMMUN 13.125 4/2/2018 0.999
FIBERTOWER CORP 9.000 11/15/2012 8.390
FIRST POTOMAC 4.000 12/15/2011 99.757
GLOBALSTAR INC 5.750 4/1/2028 38.500
GMAC LLC 6.000 12/15/2011 100.010
GMAC LLC 6.000 12/15/2011 100.000
GMX RESOURCES 5.000 2/1/2013 66.500
GMX RESOURCES 5.000 2/1/2013 63.214
GREAT ATLA & PAC 5.125 6/15/2011 1.750
HAWKER BEECHCRAF 8.500 4/1/2015 24.625
HAWKER BEECHCRAF 9.750 4/1/2017 10.250
HORIZON LINES 4.250 8/15/2012 69.000
HUTCHINSON TECH 3.250 1/15/2026 62.000
INTL LEASE FIN 4.500 12/15/2011 99.779
K HOVNANIAN ENTR 11.875 10/15/2015 53.500
KELLWOOD CO 7.625 10/15/2017 16.550
KSU-CALL12/11 13.000 12/15/2013 113.020
LEHMAN BROS HLDG 0.250 6/29/2012 23.000
LEHMAN BROS HLDG 4.700 3/6/2013 24.150
LEHMAN BROS HLDG 4.800 2/27/2013 23.500
LEHMAN BROS HLDG 4.800 3/13/2014 25.084
LEHMAN BROS HLDG 5.000 1/22/2013 23.250
LEHMAN BROS HLDG 5.000 2/11/2013 24.250
LEHMAN BROS HLDG 5.000 3/27/2013 23.500
LEHMAN BROS HLDG 5.000 8/3/2014 23.510
LEHMAN BROS HLDG 5.000 8/5/2015 23.260
LEHMAN BROS HLDG 5.100 1/28/2013 24.760
LEHMAN BROS HLDG 5.150 2/4/2015 24.300
LEHMAN BROS HLDG 5.250 2/11/2015 23.130
LEHMAN BROS HLDG 5.500 4/4/2016 25.015
LEHMAN BROS HLDG 5.625 1/24/2013 26.625
LEHMAN BROS HLDG 5.750 5/17/2013 25.880
LEHMAN BROS HLDG 6.000 7/19/2012 24.900
LEHMAN BROS HLDG 6.000 2/12/2018 23.500
LEHMAN BROS HLDG 6.200 9/26/2014 26.510
LEHMAN BROS HLDG 7.000 6/26/2015 23.625
LEHMAN BROS HLDG 7.000 12/18/2015 23.880
LEHMAN BROS HLDG 8.000 3/17/2023 22.275
LEHMAN BROS HLDG 8.050 1/15/2019 21.000
LEHMAN BROS HLDG 8.400 2/22/2023 21.000
LEHMAN BROS HLDG 8.500 8/1/2015 24.500
LEHMAN BROS HLDG 8.500 6/15/2022 23.750
LEHMAN BROS HLDG 8.750 12/21/2021 23.500
LEHMAN BROS HLDG 8.800 3/1/2015 23.125
LEHMAN BROS HLDG 8.920 2/16/2017 24.375
LEHMAN BROS HLDG 9.000 12/28/2022 21.750
LEHMAN BROS HLDG 9.000 3/7/2023 22.125
LEHMAN BROS HLDG 9.500 12/28/2022 25.000
LEHMAN BROS HLDG 9.500 1/30/2023 23.500
LEHMAN BROS HLDG 9.500 2/27/2023 24.175
LEHMAN BROS HLDG 10.000 3/13/2023 25.250
LEHMAN BROS HLDG 10.375 5/24/2024 22.000
LEHMAN BROS HLDG 11.000 6/22/2022 23.500
LEHMAN BROS HLDG 11.000 8/29/2022 20.000
LEHMAN BROS HLDG 11.000 3/17/2028 25.250
LEHMAN BROS HLDG 11.500 9/26/2022 23.500
LEHMAN BROS INC 7.500 8/1/2026 0.500
LOCAL INSIGHT 11.000 12/1/2017 1.000
MANDALAY RESORT 6.375 12/15/2011 100.000
MANNKIND CORP 3.750 12/15/2013 53.000
MF GLOBAL LTD 9.000 6/20/2038 30.250
MOHEGAN TRIBAL 6.125 2/15/2013 67.000
MOHEGAN TRIBAL 7.125 8/15/2014 46.250
MOHEGAN TRIBAL 7.125 8/15/2014 44.000
MOHEGAN TRIBAL 8.000 4/1/2012 64.650
NATL CITY BANK 6.200 12/15/2011 100.034
OLIN CORP 9.125 12/15/2011 99.750
PENSON WORLDWIDE 8.000 6/1/2014 40.358
PMI GROUP INC 6.000 9/15/2016 25.654
RADIAN GROUP 5.625 2/15/2013 63.000
REAL MEX RESTAUR 14.000 1/1/2013 44.000
RESIDENTIAL CAP 8.500 6/1/2012 87.000
RESIDENTIAL CAP 8.500 4/17/2013 65.000
SO-CALL12/11 5.650 12/15/2040 100.000
TEXAS COMP/TCEH 10.250 11/1/2015 36.875
TEXAS COMP/TCEH 10.250 11/1/2015 35.701
TEXAS COMP/TCEH 10.250 11/1/2015 36.000
THORNBURG MTG 8.000 5/15/2013 8.000
TIMES MIRROR CO 7.250 3/1/2013 30.000
TOUSA INC 9.000 7/1/2010 13.000
TRAVELPORT LLC 11.875 9/1/2016 29.000
TRAVELPORT LLC 11.875 9/1/2016 28.625
TRICO MARINE 3.000 1/15/2027 1.000
WCI COMMUNITIES 4.000 8/5/2023 1.570
WESTERN EXPRESS 12.500 4/15/2015 39.000
WILLIAM LYON INC 7.500 2/15/2014 22.500
WILLIAM LYON INC 10.750 4/1/2013 22.017
WILLIAM LYONS 7.625 12/15/2012 22.000
*********
Monday's edition of the TCR delivers a list of indicative prices
for bond issues that reportedly trade well below par. Prices are
obtained by TCR editors from a variety of outside sources during
the prior week we think are reliable. Those sources may not,
however, be complete or accurate. The Monday Bond Pricing table
is compiled on the Friday prior to publication. Prices reported
are not intended to reflect actual trades. Prices for actual
trades are probably different. Our objective is to share
information, not make markets in publicly traded securities.
Nothing in the TCR constitutes an offer or solicitation to buy or
sell any security of any kind. It is likely that some entity
affiliated with a TCR editor holds some position in the issuers"
public debt and equity securities about which we report.
Each Tuesday edition of the TCR contains a list of companies with
insolvent balance sheets whose shares trade higher than $3 per
share in public markets. At first glance, this list may look like
the definitive compilation of stocks that are ideal to sell short.
Don't be fooled. Assets, for example, reported at historical cost
net of depreciation may understate the true value of a firm's
assets. A company may establish reserves on its balance sheet for
liabilities that may never materialize. The prices at which
equity securities trade in public market are determined by more
than a balance sheet solvency test.
A list of Meetings, Conferences and Seminars appears in each
Wednesday's edition of the TCR. Submissions about insolvency-
related conferences are encouraged. Send announcements to
conferences@bankrupt.com/
On Thursdays, the TCR delivers a list of recently filed
Chapter 11 cases involving less than $1,000,000 in assets and
liabilities delivered to nation's bankruptcy courts. The list
includes links to freely downloadable images of these small-dollar
petitions in Acrobat PDF format.
Each Friday's edition of the TCR includes a review about a book of
interest to troubled company professionals. All titles are
available at your local bookstore or through Amazon.com. Go to
http://www.bankrupt.com/books/to order any title today.
Monthly Operating Reports are summarized in every Saturday edition
of the TCR.
The Sunday TCR delivers securitization rating news from the week
then-ending.
For copies of court documents filed in the District of Delaware,
please contact Vito at Parcels, Inc., at 302-658-9911. For
bankruptcy documents filed in cases pending outside the District
of Delaware, contact Ken Troubh at Nationwide Research &
Consulting at 207/791-2852.
*********
S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter is a daily newsletter co-published
by Bankruptcy Creditors" Service, Inc., Fairless Hills,
Pennsylvania, USA, and Beard Group, Inc., Frederick, Maryland,
USA. Jhonas Dampog, Marites Claro, Joy Agravante, Rousel Elaine
Tumanda, Howard C. Tolentino, Joseph Medel C. Martirez, Denise
Marie Varquez, Ronald C. Sy, Joel Anthony G. Lopez, Cecil R.
Villacampa, Sheryl Joy P. Olano, Carlo Fernandez, Christopher G.
Patalinghug, and Peter A. Chapman, Editors.
Copyright 2011. All rights reserved. ISSN: 1520-9474.
This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding, electronic
re-mailing and photocopying) is strictly prohibited without prior
written permission of the publishers. Information contained
herein is obtained from sources believed to be reliable, but is
not guaranteed.
The TCR subscription rate is $775 for 6 months delivered via e-
mail. Additional e-mail subscriptions for members of the same
firm for the term of the initial subscription or balance thereof
are $25 each. For subscription information, contact Christopher
Beard at 240/629-3300.
*** End of Transmission ***