/raid1/www/Hosts/bankrupt/TCR_Public/120804.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
Saturday, August 4, 2012, Vol. 16, No. 215
Headlines
CANO PETROLEUM: Ends June 30 With ($415,514) in Cash
CLIFFS CLUB: Ends June 30 With $736,287 in Cash
EASTMAN KODAK: Ends June 30 With $510.23 Million in Cash
EXTERRA ENERGY: Ends June 30 With $82,139 in Cash
FIRSTFED FINANCIAL: Ends June 30 With $2.05 Million in Cash
FRANKLIN CREDIT: Has $55,218 in Cash as of June 30
HUSSEY COPPER: Ends January 2012 With $11,000 in Cash
HUSSEY COPPER: Has $1,000 Net Loss for February 2012
HUSSEY COPPER: Has $2,000 Net Loss for March 2012
HUSSEY COPPER: Has $803,000 in Total Assets as of May 31
IRWIN MORTGAGE: Ends January With $5.28 Million in Cash
IRWIN MORTGAGE: Ends February With $5.20 Million in Cash
IRWIN MORTGAGE: Ends March With $5.15 Million in Cash
IRWIN MORTGAGE: Ends April With $5 Million in Cash
IRWIN MORTGAGE: Ends May With $4.89 Million in Cash
IRWIN MORTGAGE: Ends June With $4.83 Million in Cash
LEHMAN BROTHERS: Cash at $21.89 Billion as of June 30
LIGHTSQUARED INC: Ends June With $210.98 Million in Cash
LIGHTSQUARED INC: Ends May With $207.09 Million in Cash
MARCO POLO: Ends June With $5.18MM in Unrestricted Cash
NORTHSTAR AEROSPACE: Ends June With $1.19 Million in Cash
PINNACLE AIRLINES: Ends June 30 With $31.75 Million in Cash
PRINCE SPORTS: Ends May With $1.98 Million in Cash
RESIDENTIAL CAPITAL: Has $109 Million Net Loss in June
SAAB CARS: Has $6.95 Million in Cash As of May 31
UNITED RETAIL: Ends June 30 With $2.24 Million in Cash
*********
CANO PETROLEUM: Ends June 30 With ($415,514) in Cash
----------------------------------------------------
Cano Petroleum, Inc., on July 20, 2012, filed its monthly
operating report for the month ended June 30, 2012.
The Company posted a net loss of $491,527 for the month ended
June 30, 2012.
As of June 30, 2012, Cano Petroleum had total assets of $131.11
million, total liabilities of $84.13 million and total
stockholders' equity of $46.99 million.
At the beginning of June, the Company had ($167,108) in cash. The
Company had total cash receipts of $709 and total cash
disbursements of $249,115. As a result, at the end of the month,
Cano Petroleum had total cash of ($415,514).
Copies of the monthly operating report of Cano Petroleum and its
affiliates is available at:
http://ResearchArchives.com/t/s?77b2
http://ResearchArchives.com/t/s?77b3
http://ResearchArchives.com/t/s?77b4
http://ResearchArchives.com/t/s?77b5
http://ResearchArchives.com/t/s?77b6
http://ResearchArchives.com/t/s?77b7
http://ResearchArchives.com/t/s?77b8
http://ResearchArchives.com/t/s?77b9
http://ResearchArchives.com/t/s?77ba
About Cano Petroleum
Cano Petroleum, Inc. (NYSE Amex: CFW), an independent Texas-
based energy producer with properties in the mid-continent region
of the United States, filed for Chapter 11 bankruptcy (Bank. N.D.
Tex. Lead Case No. 12-31549) on March 7, 2012. Other affiliates
also sought bankruptcy protection: Cano Petro of New Mexico,
Ladder Companies, Inc., Square One Energy, Inc., Tri-Flow, Inc.,
W.O. Energy of Nevada, Inc., W.O. Operating Company, Ltd., W.O.
Production Company, Ltd., and WO Energy, Inc. The cases are
jointly administered.
The Debtors filed for bankruptcy to pursue a sale under a joint
plan of reorganization filed on the petition date. Cano Petroleum
have entered into a Stalking Horse Stock Purchase Agreement with
NBI Services Inc., pursuant to which NBI would purchase all of the
shares of common stock that would be issued by Reorganized Cano
under the Plan for $47.5 million. The deal is subject to higher
and better offers and a possible auction.
The petitions were filed by James R. Latimer, III, chief executive
officer. Judge Barbara J. Houser oversees the case. The Debtors
are represented by lawyers at Thompson & Knight LLP, in Dallas
Texas.
Cano Petroleum's consolidated balance sheet at Sept. 30, 2011,
showed $63.37 million in total assets, $116.25 million in total
liabilities, and a $52.88 million total stockholders' deficit. In
schedules filed with the Court, Cano Petroleum disclosed
$1.16 million in assets and $82.5 million in liabilities.
Union Bank of California, the administrative agent and issuing
lender under the Debtors' prepetition senior credit facility; and
UnionBanCal Equities, Inc., the administrative agent and issuing
lender, under the junior credit facility, are represented by:
William A. "Trey" Wood III, Esq., at Bracewell & Giuliani LLP.
CLIFFS CLUB: Ends June 30 With $736,287 in Cash
-----------------------------------------------
The Cliffs Club & Hospitality Group, Inc. et al., on July 20,
2012, filed its monthly operating report for the month ended
June 30, 2012.
Cliffs Club reported a net loss of $478,917 on total sales
revenues of $469,814 for the month ended June 30, 2012.
As of June 30, 2012, the Debtor had total assets of
$173.75 million, total liabilities of $332.43 million and total
stockholders' deficit of $158.68 million.
At the beginning of June, the Debtor had $0.38 million in cash.
The Debtor had total cash receipts of $2.26 million and total cash
disbursements of $2.80 million. The Debtor also had DIP advances
of $0.9 million. As a result, at the end of the month, Cliffs
Club had total cash of $0.74 million.
About Cliffs Club
Units of The Cliffs Communities, led by The Cliffs Club &
Hospitality Group, Inc., doing business as The Cliffs Golf &
Country Club, along with 10 affiliates, sought Chapter 11
protection (Bankr. D. S.C. Lead Case No. 12-01220) on Feb. 28,
2012.
The Cliffs has eight premier, private master-planned residential
communities, each to have its own world-class golf course.
Approximately 3,734 lots have been sold. There are currently
1,385 finished homes, with 63 under construction. The properties
for sale are owned by non-debtor DevCo entities.
The Feb. 28 Debtors operate the exclusive membership clubs for
golf, tennis, wellness and social activities at The Cliffs'
communities in North and South Carolina. The clubs have 2,280
members, and there are 766 resigned members with refundable
deposits totaling $37 million. The Debtors do not own the golf
courses -- they only own or lease all the "core amenities" for the
operation of the golf courses.
Another affiliate, Keowee Falls Investment Group, LLC, filed a
Chapter 11 petition (Bankr. D. S.C. Case No. 12-01399) in
Spartanburg, South Carolina, on March 2, 2012. Travelers Rest-
based Keowee Falls estimated at least $100 million in assets and
liabilities of up to $50 million.
Judge John E. Waites presides over the Debtors' cases. Lawyers
at McKenna Long & Aldridge LLP serve as the Debtors' lead counsel.
Dana Elizabeth Wilkinson, Esq., serves as local counsel. Grisanti
Galef & Goldress serves as restructuring advisors and Katie S.
Goodman of GGG serves as CRO. BMC Group Inc. serves as the
Debtors' claims and noticing agent.
According to papers filed in Court, the Debtors' total assets had
a $175 million book value at Dec. 31, 2011. The Debtors' total
liabilities had a $333 million book value at Dec. 31, 2011. The
petition was signed by Timothy P. Cherry, authorized officer.
Wells Fargo, as Indenture Trustee, is represented in the case by
Daniel S. Bleck, Esq., at Mintz Levin Cohn Ferris Glovsky and
Popeo P.C.; and Elizabeth J. Philp, Esq., and Michael Beal, Esq.,
at McNair Law Firm P.A.
The Official Committee of Unsecured Creditors is represented in
the case by John B. Butler, III, P.A., and Jonathan B. Alter,
Esq., at Bingham McCutchen LLP.
The Debtor has filed a Chapter 11 plan that proposes to pay
lenders owed $73.5 million in secured notes, the sum of $64
million, spread over 20 years without interest. The lenders will
receive the greater of $1 million a year or half of cash flow.
The outstanding balance will be paid at maturity. Unsecured
creditors with an estimated $3.9 million in claims are predicted
to have a 75% recovery. Mechanics lienholders with $1.5 million
in claims will be paid in full without interest. Members will be
invited to join the newly reorganized club. Those who accept the
offer will recover between 35% and 75%. Members who don't take
the offer are to see a predicted recovery of 4% to 10%.
The Court has approved the disclosure statement explaining the
Plan. Plan votes are due Aug. 1. The Court will convene a
hearing on Aug. 6, at 10 a.m., to consider the confirmation of the
Plan.
A copy of the Disclosure Statement is available for free at
http://bankrupt.com/misc/CLIFFS_CLUB_ds_1amended.pdf
EASTMAN KODAK: Ends June 30 With $510.23 Million in Cash
--------------------------------------------------------
Eastman Kodak Company, on July 30, 2012, filed its monthly
operating report for the month ended June 30, 2012.
The Company reported a net loss of $160.08 million on revenues of
$180.16 million for the month ended June 30, 2012.
As of June 30, 2012, the Company had total assets of $4.08
billion, total liabilities of $5.40 billion and total
stockholders' deficit of $1.32 billion.
Eastman Kodak had total cash receipts of $151.10 million and total
cash disbursements of $202.25 million. The Debtor has $510.23
million in cash as of June 30, 2012.
A full-text copy of the monthly operating report is available at:
http://ResearchArchives.com/t/s?77be
About Eastman Kodak
Rochester, New York-based Eastman Kodak Company and its U.S.
subsidiaries on Jan. 19, 2012, filed voluntarily Chapter 11
petitions (Bankr. S.D.N.Y. Lead Case No. 12-10202) in Manhattan.
Subsidiaries outside of the U.S. were not included in the filing
and are expected to continue to operate as usual.
Kodak, founded in 1880 by George Eastman, was once the world's
leading producer of film and cameras. Kodak sought bankruptcy
protection amid near-term liquidity issues brought about by
steeper-than-expected declines in Kodak's historically profitable
traditional businesses, and cash flow from the licensing and sale
of intellectual property being delayed due to litigation tactics
employed by a small number of infringing technology companies with
strong balance sheets and an awareness of Kodak's liquidity
challenges.
In recent years, Kodak has been working to transform itself from a
business primarily based on film and consumer photography to a
smaller business with a digital growth strategy focused on the
commercialization of proprietary digital imaging and printing
technologies. Kodak has 8,900 patent and trademark registrations
and applications in the United States, as well as 13,100 foreign
patents and trademark registrations or pending registration in
roughly 160 countries.
Kodak disclosed $5.10 billion in assets and $6.75 billion in
liabilities as of Sept. 30, 2011. The net book value of all
assets located outside the United States as of Dec. 31, 2011 is
$13.5 million.
Attorneys at Sullivan & Cromwell LLP and Young Conaway Stargatt &
Taylor, LLP, serve as counsel to the Debtors. FTI Consulting,
Inc., is the restructuring advisor. Lazard Freres & Co. LLC, is
the investment banker. Kurtzman Carson Consultants LLC is the
claims agent.
The Official Committee of Unsecured Creditors has tapped
Milbank, Tweed, Hadley & McCloy LLP, as its bankruptcy counsel.
Michael S. Stamer, Esq., David H. Botter, Esq., and Abid Qureshi,
Esq., at Akin Gump Strauss Hauer & Feld LLP, represent the
Unofficial Second Lien Noteholders Committee.
Robert J. Stark, Esq., Andrew Dash, Esq., and Neal A. D'Amato,
Esq., at Brown Rudnick LLP, represent Greywolf Capital Partners
II; Greywolf Capital Overseas Master Fund; Richard Katz, Kenneth
S. Grossman; and Paul Martin.
EXTERRA ENERGY: Ends June 30 With $82,139 in Cash
-------------------------------------------------
Exterra Energy, Inc., on July 27, 2012, filed its monthly
operating report for the month ended June 30, 2012.
The Company reported a net loss of $569 for the month ended
June 30, 2012.
As of June 30, 2012, the Company had total assets of
$885,927, total liabilities of $14.27 million and total
stockholders' deficit of $13.38 million.
At the end of the month, Exterra Energy had total cash of $82,139.
A full-text copy of the monthly operating report is available at:
http://ResearchArchives.com/t/s?77bc
About Exterra Energy
Exterra Energy Inc., an oil and natural-gas exploration and
production company in Amarillo, Texas, filed a bare-bones Chapter
11 petition (Bankr. N.D. Tex. Case No. 11-46956) on Dec. 15, 2011,
in Fort Worth. Two weeks later, Exterra filed its schedules of
assets and liabilities claiming to have property worth $19.4
million. The company also filed a balance sheet from February
listing assets of $5.1 million. The formal bankruptcy lists show
total debt of $7.5 million, including $4.6 million in secured
claims. The company's Web site says Exterra has 12 wells in Pecos
County, Texas, plus interests in another 50.
FIRSTFED FINANCIAL: Ends June 30 With $2.05 Million in Cash
-----------------------------------------------------------
FirstFed Financial Corp., on July 20, 2012, filed its monthly
operating report for the month ended June 30, 2012.
FirstFed Financial reported a net loss of $91,638 for the month
ended June 30, 2012.
As of June 30, 2012, the Debtor had total assets of $2.23 million,
total liabilities of $159.62 million and total stockholders'
deficit of $157.39 million.
At the beginning of June, FirstFed Financial had $2.14 million in
cash. The Debtor had total cash disbursements of $92,319. As a
result, at the end of June, the Debtor had total cash of
$2.05 million.
A full-text copy of the monthly operating report is available at:
http://ResearchArchives.com/t/s?77bb
About FirstFed Financial
Irvine, Calif.-based FirstFed Financial Corp. is the bank
holding company for First Federal Bank of California and its
subsidiaries. The Bank was closed by federal regulators on
Dec. 18, 2009.
FirstFed Financial Corp. filed for Chapter 11 protection (Bankr.
C.D. Calif. Case No. 10-10150) on Jan. 6, 2010. Jon L. Dalberg,
Esq., at Landau Gottfried & Berger LLP, represents the Debtor in
its restructuring effort. Garden City Group is the claims and
notice agent. The Debtor disclosed assets at $1 million and
$10 million, and debts at $100 million and $500 million.
The Debtor's exclusive period to propose a plan expired in
January 2011.
The Debtor has proposed a Plan of Liquidation, which proposes an
orderly liquidation of the Debtor's estate. Holdco Advisors L.P.,
submitted a competing plan of reorganization.
FRANKLIN CREDIT: Has $55,218 in Cash as of June 30
--------------------------------------------------
Franklin Credit Holding Corporation, on July 17, 2012, filed its
monthly operating report for the month ended June 30, 2012.
The Debtor posted a net loss of $673 for the month ended June 30,
2012.
As of June 30, 2012, the Debtor had total assets of $130,217 and
total liabilities of $827.27 million.
As of June 1, 2012, Franklin Credit had $55,373 in cash. The
Debtor had $155 in disbursements for administrative costs. At the
end of the month, the Debtor had $55,218 in cash.
A full-text copy of the monthly operating report is available at:
http://ResearchArchives.com/t/s?77bd
About Franklin Credit
Franklin Credit Holding Corporation (OTC BB: FCMC)
-- http://www.franklincredit.com/-- is a specialty consumer
finance company primarily engaged in the servicing and resolution
of performing, re-performing and nonperforming residential
mortgage loans, including specialized loan recovery servicing, and
in the analysis, pricing, due diligence and acquisition of
residential mortgage portfolios for third parties. The Company's
executive, administrative and operations offices are located in
Jersey City, N.J.
Franklin Credit Holding Corporation filed a Chapter 11 bankruptcy
petition (Bankr. D. N.J. Case No. 12-24411) in Newark, New Jersey,
on June 4, 2012. Franklin Credit also filed a prepackaged plan.
The Debtor is seeking a combined hearing on the plan and the
explanatory disclosure statement.
Judge Donald H. Steckroth presides over the case. Lawyers at
McCarter & English, LLP, serves as the Debtor's counsel.
In its petition, the Debtor estimated $1 million to $10 million in
assets and $500 million to $1 billion in debts. In a recent
regulatory filing with the U.S. Securities and Exchange
Commission, Franklin Credit Holding's balance sheet at March 31,
2012, showed $29.02 million in total assets, $874.02 million in
total liabilities, and a $845 million total stockholders' deficit.
The petition was signed by Paul Colasono, executive vice president
and chief financial officer.
The Plan provides for the liquidation of its assets -- the
ownership of 80% of the stock in non-debtor Franklin Credit
Mortgage Corp. -- with the proceeds or the fair market value of
the assets being distributed in accordance with the Bankruptcy
Code. The fair market value of FCMC will be distributed through
the payment of $250,000 in cash on the effective date of the Plan
and an aggregate $1.11 million over a period of five years,
evidenced by a promissory note guaranteed by Thomas J. Axon, the
chairman and president of the Debtor and FCMC, and the owner of
20% of the common shares of FCMC, and 45.2% of the common shares
of the Debtor. The payments will be made by FCMC, and will be the
primary source of cash for distributions contemplated by the Plan.
IN exchange for the payment by FCMC, the Debtor's interests in the
stock of FCMC will be distributed, pro-rata, to holders of allowed
interests.
The Plan provides for payment in full of allowed priority non-tax
claims. The secured claims of the legacy lenders totaling
$820.6 million will be unaltered by the Plan. Huntington National
Bank and Huntington Finance LLC will release the Debtor from any
obligations in connection with their secured claims of $4.7
million. Holders of general unsecured claims estimated to total
$1.9 million will receive their pro rata share of the proceeds of
the liquidation of the remaining assets.
The Court has established July 18, 2012, as the hearing on the
adequacy of the Disclosure Statement.
The Debtor filed a First Amended Prepackaged Plan of
Reorganization that proposes to change, among other things, the
proposed record date to identify stockholders for a proposed
distribution of a pro rata share of the Company's 80% interest in
its mortgage servicing subsidiary, Franklin Credit Management
Corporation. The Debtor now proposes the record date to be a date
after a confirmation order has been entered by the Bankruptcy
Court. The Debtor also proposes to exclude liability to the
Securities and Exchange Commission from the releases proposed to
be granted in favor of non-debtors. The Debtor asks the Court to
approve those modifications as non-material without the need for
further solicitation of votes to accept or reject the Prepackaged
Plan.
HUSSEY COPPER: Ends January 2012 With $11,000 in Cash
-----------------------------------------------------
Hussey Copper Corp., on July 19, 2012, filed its monthly operating
report for the month ended January 31, 2012.
The Debtor posted a net loss of $2,000 for the month ended
Jan. 31, 2012.
As of Jan. 31, 2012, the Debtor had total assets of $807,000,
total liabilities of $2,000 and total stockholders' equity of
$805,000.
Hussey Copper had total cash disbursements of $1,507 for the month
ended Jan. 31, 2012. As a result, the Company had total cash of
$11,000 at the end of January.
About Hussey Copper
Hussey Copper Corp., based in Leetsdale, Pennsylvania, is one of
the leading manufacturers of copper products in the United States.
Hussey Copper was founded in Pittsburgh in 1848. The Company and
its affiliates, which operate one manufacturing facility in
Leetsdale and two facilities in Eminence, Kentucky, manufacture "a
wide range of value-added copper products and copper-nickel
products. The Company has more than 500 full-time employees.
Hussey Copper Corp. filed a Chapter 11 petition (Bankr D. Del.
Case No. 11-13010) on Sept. 27, 2011, with a deal to sell
substantially all assets. Five other affiliates also filed
separate petitions (Case Nos. 11-13012 to 11-13016). Hussey
Copper Ltd. estimated $100 million to $500 million in assets and
debts. Hussey Copper Corp. estimated up to $50,000 in assets and
up to $100 million in debts.
Mark Minuti, Esq., at Saul Ewing LLP, serves as counsel to the
Debtors. Donlin Recano & Company Inc. is the claims and notice
agent. The Debtors tapped Winter Harbor, LLC in substitution for
Huron Consulting Services LLC.
An official creditors' committee has been appointed in the case.
The panel selected Lowenstein Sandler PC as counsel. The panel
selected FTI Consulting, Inc. as restructuring and financial
advisor.
Hussey filed for bankruptcy with a deal to sell the assets to
stalking horse bidder, KHC Acquisitions LLC, a unit of Kataman
Metals LLC. US private equity firm Patriarch Partners beat
Kataman at an auction and officially acquired Hussey on Dec. 16,
2011. The buyout firm of distressed debt mogul Lynn Tilton
acquired Hussey for $107.8 million after a nine-hour, 34-round
auction.
Kataman is represented in the case by David D. Watson, Esq., and
Scott Opincar, Esq., at McDonald Hopkins LLC, in Cleveland.
Counsel to PNC Bank NA, as lender, issuer and agent for the
Debtors' secured lenders, are Lawrence F. Flick II, Esq., Blank
Rome LLP, in New York, and, Regina Stango Kelbon, Esq., at Blank
Rome LLP, in Wilmington.
Following the sale, Bankruptcy Judge Brendan L. Shannon approved
the name change of Hussey Copper Corp. et al., to HCL Liquidation
Ltd.
HUSSEY COPPER: Has $1,000 Net Loss for February 2012
----------------------------------------------------
Hussey Copper Corp., on July 19, 2012, filed its monthly operating
report for the month ended February 29, 2012.
Hussey Copper reported a net loss of $1,000 for the month ended
Feb. 29, 2012.
As of Feb. 29, 2012, the Debtor had total assets of $806,000,
total liabilities of $2,000 and total stockholders' equity of
$805,000.
The Debtor had total cash disbursements of $530 for the month of
February.
About Hussey Copper
Hussey Copper Corp., based in Leetsdale, Pennsylvania, is one of
the leading manufacturers of copper products in the United States.
Hussey Copper was founded in Pittsburgh in 1848. The Company and
its affiliates, which operate one manufacturing facility in
Leetsdale and two facilities in Eminence, Kentucky, manufacture "a
wide range of value-added copper products and copper-nickel
products. The Company has more than 500 full-time employees.
Hussey Copper Corp. filed a Chapter 11 petition (Bankr D. Del.
Case No. 11-13010) on Sept. 27, 2011, with a deal to sell
substantially all assets. Five other affiliates also filed
separate petitions (Case Nos. 11-13012 to 11-13016). Hussey
Copper Ltd. estimated $100 million to $500 million in assets and
debts. Hussey Copper Corp. estimated up to $50,000 in assets and
up to $100 million in debts.
Mark Minuti, Esq., at Saul Ewing LLP, serves as counsel to the
Debtors. Donlin Recano & Company Inc. is the claims and notice
agent. The Debtors tapped Winter Harbor, LLC in substitution for
Huron Consulting Services LLC.
An official creditors' committee has been appointed in the case.
The panel selected Lowenstein Sandler PC as counsel. The panel
selected FTI Consulting, Inc. as restructuring and financial
advisor.
Hussey filed for bankruptcy with a deal to sell the assets to
stalking horse bidder, KHC Acquisitions LLC, a unit of Kataman
Metals LLC. US private equity firm Patriarch Partners beat
Kataman at an auction and officially acquired Hussey on Dec. 16,
2011. The buyout firm of distressed debt mogul Lynn Tilton
acquired Hussey for $107.8 million after a nine-hour, 34-round
auction.
Kataman is represented in the case by David D. Watson, Esq., and
Scott Opincar, Esq., at McDonald Hopkins LLC, in Cleveland.
Counsel to PNC Bank NA, as lender, issuer and agent for the
Debtors' secured lenders, are Lawrence F. Flick II, Esq., Blank
Rome LLP, in New York, and, Regina Stango Kelbon, Esq., at Blank
Rome LLP, in Wilmington.
Following the sale, Bankruptcy Judge Brendan L. Shannon approved
the name change of Hussey Copper Corp. et al., to HCL Liquidation
Ltd.
HUSSEY COPPER: Has $2,000 Net Loss for March 2012
-------------------------------------------------
Hussey Copper Corp., on July 19, 2012, filed its monthly operating
report for the month ended March 31, 2012.
The Company reported a net loss of $2,000 for the month ended
March 31, 2012.
As of March 31, 2012, Hussey Copper had total assets of $804,000,
total liabilities of $2,000 and total stockholders' equity of
$803,000.
The Company had total cash disbursements of $2,112 for the month
ended March 31, 2012.
About Hussey Copper
Hussey Copper Corp., based in Leetsdale, Pennsylvania, is one of
the leading manufacturers of copper products in the United States.
Hussey Copper was founded in Pittsburgh in 1848. The Company and
its affiliates, which operate one manufacturing facility in
Leetsdale and two facilities in Eminence, Kentucky, manufacture "a
wide range of value-added copper products and copper-nickel
products. The Company has more than 500 full-time employees.
Hussey Copper Corp. filed a Chapter 11 petition (Bankr D. Del.
Case No. 11-13010) on Sept. 27, 2011, with a deal to sell
substantially all assets. Five other affiliates also filed
separate petitions (Case Nos. 11-13012 to 11-13016). Hussey
Copper Ltd. estimated $100 million to $500 million in assets and
debts. Hussey Copper Corp. estimated up to $50,000 in assets and
up to $100 million in debts.
Mark Minuti, Esq., at Saul Ewing LLP, serves as counsel to the
Debtors. Donlin Recano & Company Inc. is the claims and notice
agent. The Debtors tapped Winter Harbor, LLC in substitution for
Huron Consulting Services LLC.
An official creditors' committee has been appointed in the case.
The panel selected Lowenstein Sandler PC as counsel. The panel
selected FTI Consulting, Inc. as restructuring and financial
advisor.
Hussey filed for bankruptcy with a deal to sell the assets to
stalking horse bidder, KHC Acquisitions LLC, a unit of Kataman
Metals LLC. US private equity firm Patriarch Partners beat
Kataman at an auction and officially acquired Hussey on Dec. 16,
2011. The buyout firm of distressed debt mogul Lynn Tilton
acquired Hussey for $107.8 million after a nine-hour, 34-round
auction.
Kataman is represented in the case by David D. Watson, Esq., and
Scott Opincar, Esq., at McDonald Hopkins LLC, in Cleveland.
Counsel to PNC Bank NA, as lender, issuer and agent for the
Debtors' secured lenders, are Lawrence F. Flick II, Esq., Blank
Rome LLP, in New York, and, Regina Stango Kelbon, Esq., at Blank
Rome LLP, in Wilmington.
Following the sale, Bankruptcy Judge Brendan L. Shannon approved
the name change of Hussey Copper Corp. et al., to HCL Liquidation
Ltd.
HUSSEY COPPER: Has $803,000 in Total Assets as of May 31
--------------------------------------------------------
Hussey Copper Corp., on July 19, 2012, filed its monthly operating
report for the month ended May 31, 2012.
As of May 31, 2012, Hussey Copper had total assets of $803,000,
total liabilities of $2,000 and total stockholders' equity of
$801,000.
Hussey Copper had total cash disbursements of $325 for the month
ended May 31, 2012.
About Hussey Copper
Hussey Copper Corp., based in Leetsdale, Pennsylvania, is one of
the leading manufacturers of copper products in the United States.
Hussey Copper was founded in Pittsburgh in 1848. The Company and
its affiliates, which operate one manufacturing facility in
Leetsdale and two facilities in Eminence, Kentucky, manufacture "a
wide range of value-added copper products and copper-nickel
products. The Company has more than 500 full-time employees.
Hussey Copper Corp. filed a Chapter 11 petition (Bankr D. Del.
Case No. 11-13010) on Sept. 27, 2011, with a deal to sell
substantially all assets. Five other affiliates also filed
separate petitions (Case Nos. 11-13012 to 11-13016). Hussey
Copper Ltd. estimated $100 million to $500 million in assets and
debts. Hussey Copper Corp. estimated up to $50,000 in assets and
up to $100 million in debts.
Mark Minuti, Esq., at Saul Ewing LLP, serves as counsel to the
Debtors. Donlin Recano & Company Inc. is the claims and notice
agent. The Debtors tapped Winter Harbor, LLC in substitution for
Huron Consulting Services LLC.
An official creditors' committee has been appointed in the case.
The panel selected Lowenstein Sandler PC as counsel. The panel
selected FTI Consulting, Inc. as restructuring and financial
advisor.
Hussey filed for bankruptcy with a deal to sell the assets to
stalking horse bidder, KHC Acquisitions LLC, a unit of Kataman
Metals LLC. US private equity firm Patriarch Partners beat
Kataman at an auction and officially acquired Hussey on Dec. 16,
2011. The buyout firm of distressed debt mogul Lynn Tilton
acquired Hussey for $107.8 million after a nine-hour, 34-round
auction.
Kataman is represented in the case by David D. Watson, Esq., and
Scott Opincar, Esq., at McDonald Hopkins LLC, in Cleveland.
Counsel to PNC Bank NA, as lender, issuer and agent for the
Debtors' secured lenders, are Lawrence F. Flick II, Esq., Blank
Rome LLP, in New York, and, Regina Stango Kelbon, Esq., at Blank
Rome LLP, in Wilmington.
Following the sale, Bankruptcy Judge Brendan L. Shannon approved
the name change of Hussey Copper Corp. et al., to HCL Liquidation
Ltd.
IRWIN MORTGAGE: Ends January With $5.28 Million in Cash
-------------------------------------------------------
Irwin Mortgage Corporation, on February 17, 2012, filed its
monthly operating report for the month ended January 31, 2012.
At the beginning of the month, the Company had $5.20 million in
cash. Irwin Mortgage had total cash receipts of $202,749 and
total cash disbursements of $118,003. As a result, at the end of
the month, the Company had total cash of $5.28 million.
About Irwin Mortgage
For a number of years, Irwin Mortgage Corporation, based in
Dublin, Ohio, originated, purchased, sold and serviced
conventional and government agency backed residential mortgage
loans throughout the United States. However, in 2006 and
continuing into early 2007, IMC sold substantially all of its
assets, including its mortgage origination business, its mortgage
servicing business, and its mortgage servicing rights portfolio,
to a number of third party purchasers. As a result of those
sales, IMC terminated its operations and has been winding down
since 2006.
Irwin Mortgage filed for Chapter 11 bankruptcy (Bankr. S.D. Ohio
Case No. 11-57191) on July 8, 2011. Judge Charles M. Caldwell
presides over the case. In its petition, the Debtor estimated
assets of $10 million to $50 million, and debts of $50 million to
$100 million. The petition was signed by Fred C. Caruso,
president.
Nick V. Cavalieri, Esq., Matthew T. Schaeffer, Esq., and Robert B.
Berner, Esq., at Bailey Cavalieri LLC, serve as the Debtor's
counsel. Fred C. Caruso and Development Specialists Inc. provide
wind-down management services to the Debtor.
IRWIN MORTGAGE: Ends February With $5.20 Million in Cash
--------------------------------------------------------
Irwin Mortgage Corporation, on March 20, 2012, filed its monthly
operating report for the month ended February 29, 2012.
At the beginning of the month, the Company had $5.28 million in
cash. The Company had total cash receipts of $7,277 and total
cash disbursements of $101,006. As a result, at the end of the
month, Irwin Mortgage had total cash of $5.20 million.
About Irwin Mortgage
For a number of years, Irwin Mortgage Corporation, based in
Dublin, Ohio, originated, purchased, sold and serviced
conventional and government agency backed residential mortgage
loans throughout the United States. However, in 2006 and
continuing into early 2007, IMC sold substantially all of its
assets, including its mortgage origination business, its mortgage
servicing business, and its mortgage servicing rights portfolio,
to a number of third party purchasers. As a result of those
sales, IMC terminated its operations and has been winding down
since 2006.
Irwin Mortgage filed for Chapter 11 bankruptcy (Bankr. S.D. Ohio
Case No. 11-57191) on July 8, 2011. Judge Charles M. Caldwell
presides over the case. In its petition, the Debtor estimated
assets of $10 million to $50 million, and debts of $50 million to
$100 million. The petition was signed by Fred C. Caruso,
president.
Nick V. Cavalieri, Esq., Matthew T. Schaeffer, Esq., and Robert B.
Berner, Esq., at Bailey Cavalieri LLC, serve as the Debtor's
counsel. Fred C. Caruso and Development Specialists Inc. provide
wind-down management services to the Debtor.
IRWIN MORTGAGE: Ends March With $5.15 Million in Cash
-----------------------------------------------------
Irwin Mortgage Corporation, on April 20, 2012, filed its monthly
operating report for the month ended March 31, 2012.
As of March 1, 2012, the Debtor had $5.20 million in cash. The
Debtor had total cash receipts of $6,117 and total cash
disbursements of $46,268. As a result, at the end of the month,
Irwin Mortgage had total cash of $5.15 million.
About Irwin Mortgage
For a number of years, Irwin Mortgage Corporation, based in
Dublin, Ohio, originated, purchased, sold and serviced
conventional and government agency backed residential mortgage
loans throughout the United States. However, in 2006 and
continuing into early 2007, IMC sold substantially all of its
assets, including its mortgage origination business, its mortgage
servicing business, and its mortgage servicing rights portfolio,
to a number of third party purchasers. As a result of those
sales, IMC terminated its operations and has been winding down
since 2006.
Irwin Mortgage filed for Chapter 11 bankruptcy (Bankr. S.D. Ohio
Case No. 11-57191) on July 8, 2011. Judge Charles M. Caldwell
presides over the case. In its petition, the Debtor estimated
assets of $10 million to $50 million, and debts of $50 million to
$100 million. The petition was signed by Fred C. Caruso,
president.
Nick V. Cavalieri, Esq., Matthew T. Schaeffer, Esq., and Robert B.
Berner, Esq., at Bailey Cavalieri LLC, serve as the Debtor's
counsel. Fred C. Caruso and Development Specialists Inc. provide
wind-down management services to the Debtor.
IRWIN MORTGAGE: Ends April With $5 Million in Cash
--------------------------------------------------
Irwin Mortgage Corporation, on May 21, 2012, filed its monthly
operating report for the month ended April 30, 2012.
As of Apr. 1, 2012, the Company had $5.15 million in cash. Irwin
Mortgage had total cash receipts of $1,440 and total cash
disbursements of $150,329. As a result, at the end of the month,
the Company had total cash of $5 million.
About Irwin Mortgage
For a number of years, Irwin Mortgage Corporation, based in
Dublin, Ohio, originated, purchased, sold and serviced
conventional and government agency backed residential mortgage
loans throughout the United States. However, in 2006 and
continuing into early 2007, IMC sold substantially all of its
assets, including its mortgage origination business, its mortgage
servicing business, and its mortgage servicing rights portfolio,
to a number of third party purchasers. As a result of those
sales, IMC terminated its operations and has been winding down
since 2006.
Irwin Mortgage filed for Chapter 11 bankruptcy (Bankr. S.D. Ohio
Case No. 11-57191) on July 8, 2011. Judge Charles M. Caldwell
presides over the case. In its petition, the Debtor estimated
assets of $10 million to $50 million, and debts of $50 million to
$100 million. The petition was signed by Fred C. Caruso,
president.
Nick V. Cavalieri, Esq., Matthew T. Schaeffer, Esq., and Robert B.
Berner, Esq., at Bailey Cavalieri LLC, serve as the Debtor's
counsel. Fred C. Caruso and Development Specialists Inc. provide
wind-down management services to the Debtor.
IRWIN MORTGAGE: Ends May With $4.89 Million in Cash
---------------------------------------------------
Irwin Mortgage Corporation, on June 19, 2012, filed its monthly
operating report for the month ended May 31, 2012.
As of May 1, 2012, Irwin Mortgage had $5 million in cash. The
Debtor had total cash receipts of $6,427 and total cash
disbursements of $115,812. As a result, at the end of the month,
the Debtor had total cash of $4.89 million.
About Irwin Mortgage
For a number of years, Irwin Mortgage Corporation, based in
Dublin, Ohio, originated, purchased, sold and serviced
conventional and government agency backed residential mortgage
loans throughout the United States. However, in 2006 and
continuing into early 2007, IMC sold substantially all of its
assets, including its mortgage origination business, its mortgage
servicing business, and its mortgage servicing rights portfolio,
to a number of third party purchasers. As a result of those
sales, IMC terminated its operations and has been winding down
since 2006.
Irwin Mortgage filed for Chapter 11 bankruptcy (Bankr. S.D. Ohio
Case No. 11-57191) on July 8, 2011. Judge Charles M. Caldwell
presides over the case. In its petition, the Debtor estimated
assets of $10 million to $50 million, and debts of $50 million to
$100 million. The petition was signed by Fred C. Caruso,
president.
Nick V. Cavalieri, Esq., Matthew T. Schaeffer, Esq., and Robert B.
Berner, Esq., at Bailey Cavalieri LLC, serve as the Debtor's
counsel. Fred C. Caruso and Development Specialists Inc. provide
wind-down management services to the Debtor.
IRWIN MORTGAGE: Ends June With $4.83 Million in Cash
----------------------------------------------------
Irwin Mortgage Corporation, on July 20, 2012, filed its monthly
operating report for the month ended June 30, 2012.
As of June 1, 2012, the Company had $4.89 million in cash. The
Company had total cash receipts of $1,383 and total cash
disbursements of $61,403. As a result, at the end of the month,
Irwin Mortgage had total cash of $4.83 million.
About Irwin Mortgage
For a number of years, Irwin Mortgage Corporation, based in
Dublin, Ohio, originated, purchased, sold and serviced
conventional and government agency backed residential mortgage
loans throughout the United States. However, in 2006 and
continuing into early 2007, IMC sold substantially all of its
assets, including its mortgage origination business, its mortgage
servicing business, and its mortgage servicing rights portfolio,
to a number of third party purchasers. As a result of those
sales, IMC terminated its operations and has been winding down
since 2006.
Irwin Mortgage filed for Chapter 11 bankruptcy (Bankr. S.D. Ohio
Case No. 11-57191) on July 8, 2011. Judge Charles M. Caldwell
presides over the case. In its petition, the Debtor estimated
assets of $10 million to $50 million, and debts of $50 million to
$100 million. The petition was signed by Fred C. Caruso,
president.
Nick V. Cavalieri, Esq., Matthew T. Schaeffer, Esq., and Robert B.
Berner, Esq., at Bailey Cavalieri LLC, serve as the Debtor's
counsel. Fred C. Caruso and Development Specialists Inc. provide
wind-down management services to the Debtor.
LEHMAN BROTHERS: Cash at $21.89 Billion as of June 30
-----------------------------------------------------
Lehman Brothers Holdings Inc. disclosed these cash receipts and
disbursements of the company, its affiliated debtors and
controlled entities for the month ended June 30, 2012:
Beginning Total Cash & Investments (06/01/12) $22,409,000,000
Total Sources of Cash 1,385,000,000
Total Uses of Cash (1,870,000,000)
FX Fluctuation (8,000,000)
---------------
Ending Total Cash & Investments (06/30/12) $21,894,000,000
Lehman reported $11.265 billion in cash and investments as of
June 1, 2012, and $11.645 billion as of June 30, 2012.
The monthly operating report also showed that a total of
$16,390,000 was paid last month to the U.S Trustee and bankruptcy
professionals.
From September 15, 2008 to June 30, 2012, a total of
$1,712,828,000 was paid to the U.S. Trustee and professionals, of
which $535,520,000 was paid to Lehman's turnaround manager
Alvarez & Marsal LLC while $419,228,000 was paid to its
bankruptcy counsel, Weil Gotshal & Manges LLP.
A full-text copy of the June 2012 Operating Report is available
for free at http://bankrupt.com/misc/LehmanMORJune3012.pdf
Lehman has $8.2 billion of cash available for creditor payments
after raising $4.7 billion in the second quarter from real estate
sales, derivatives and settlement of a lawsuit, Bloomberg News
reported.
The company plans semi-annual distributions, including a second
payment to creditors in September, and is focused on maximizing
cash for that purpose. It made its first payment of $22.5
billion to creditors in April, the July 31 report said.
Allowed claims for payment have been cut to $303 billion from
$1.3 trillion originally, with another $58 billion that may be
deemed valid, out of disputed claims of $193 billion. Lehman has
said it aims to raise $53 billion through 2016 or so, to pay an
average of 18 cents on the dollar on final claims of $300
billion, according to the report.
Among creditors targeted for cuts through litigation are JPMorgan
Chase & Co. and Citigroup Inc. Lehman has reached an agreement
in principle with its former brokerage that would resolve
disputes over mutual claims, Bloomberg News reported.
March Balance Sheet
Lehman Brothers Holdings Inc. and its affiliated debtors filed
copies of their balance sheets as of March 31, 2012. The
documents showed that as of March 31, 2012, the company had total
assets of $93.624 billion, total liabilities of $274.846 billion
and total stockholders' equity of ($181.222) billion.
Copies of the balance sheets are available without charge at:
http://bankrupt.com/misc/LBHI_March3112BalSheet.pdf
About Lehman Brothers
Lehman Brothers Holdings Inc. -- http://www.lehman.com/-- was
the fourth largest investment bank in the United States. For
more than 150 years, Lehman Brothers has been a leader in the
global financial markets by serving the financial needs of
corporations, governmental units, institutional clients and
individuals worldwide.
Lehman Brothers filed for Chapter 11 bankruptcy Sept. 15, 2008
(Bankr. S.D.N.Y. Case No. 08-13555). Lehman's bankruptcy
petition disclosed US$639 billion in assets and US$613 billion in
debts, effectively making the firm's bankruptcy filing the
largest in U.S. history. Several other affiliates followed
thereafter.
Affiliates Merit LLC, LB Somerset LLC and LB Preferred Somerset
LLC sought for bankruptcy protection in December 2009.
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 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.
Lehman emerged from bankruptcy protection on March 6, 2012, more
than three years after it filed the largest bankruptcy in U.S.
history. Lehman is set to make its first payment to creditors
under its $65 billion payout plan on April 17, 2012.
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 215/945-700)
LIGHTSQUARED INC: Ends June With $210.98 Million in Cash
--------------------------------------------------------
LightSquared Inc. and its affiliates, on July 13, 2012, filed its
monthly operating report for the month ended June 30, 2012.
The Debtor reported a net loss of $47.17 million on net revenue of
$3.65 million for the month ended June 30, 2012.
As of June 30, 2012, LightSquared had total assets of
$4.04 billion, total liabilities of $2.37 billion and total
stockholders' equity of $1.67 billion.
At the beginning of the month, the Debtor had $207.09 million in
cash. The Debtor had total cash receipts of $15.67 million and
total cash disbursements of $11.77 million. As a result, at the
end of the month, LightSquared had total cash of $210.98 million.
About LightSquared
LightSquared Inc. and 19 of its affiliates filed Chapter 11
bankruptcy petitions (Bankr. S.D.N.Y. Lead Case No. 12-12080) on
May 14, 2012, as the Company seeks to resolve regulatory issues
that have prevented it from building its coast-to-coast integrated
satellite 4G wireless network.
LightSquared had invested more than $4 billion to deploy an
integrated satellite-terrestrial network. In February 2012,
however, the U.S. Federal Communications Commission told
LightSquared the agency would revoke a license to build out the
network as it would interfere with global positioning systems used
by the military and various industries. In March 2012, the
Company's partner, Sprint, canceled a master services agreement.
LightSquared's lenders deemed the termination of the Sprint
agreement would trigger cross-defaults under LightSquared's
prepetition credit agreements.
LightSquared and its prepetition lenders attempted to negotiate a
global restructuring that would provide LightSquared with
liquidity and runway necessary to resolve its issues with the FCC.
Despite working diligently and in good faith, however,
LightSquared and the lenders were not able to consummate a global
restructuring on terms acceptable to all interested parties,
prompting the bankruptcy filing.
As of the Petition Date, the Debtors employed roughly 168 people
in the United States and Canada. As of Feb. 29, 2012, the Debtors
had $4.48 billion in assets (book value) and $2.29 billion in
liabilities.
LightSquared also sought ancillary relief in Canada on behalf of
all of the Debtors, pursuant to the Companies' Creditors
Arrangement Act (Canada) R.S.C. 1985, c. C-36 as amended, in the
Ontario Superior Court of Justice (Commercial List) in Toronto,
Ontario, Canada. The purpose of the ancillary proceedings is to
request the Canadian Court to recognize the Chapter 11 cases as a
"foreign main proceeding" under the applicable provisions of the
CCAA to, among other things, protect the Debtors' assets and
operations in Canada. The Debtors named affiliate LightSquared LP
to act as the "foreign representative" on behalf of the Debtors'
estates.
Judge Shelley C. Chapman presides over the Chapter 11 case.
Lawyers at Milbank, Tweed, Hadley & McCloy LLP serve as counsel to
the Debtors. Kurtzman Carson Consultants LLC serves as claims and
notice agent.
Counsel to UBS AG as agent under the October 2010 facility is
Melissa S. Alwang, Esq., at Latham & Watkins LLP.
The ad hoc secured group of lenders under the Debtors' October
2010 facility was formed in April 2012 to negotiate an out-of-
court restructuring. The members are Appaloosa Management L.P.;
Capital Research and Management Company; Fortress Investment
Group; Knighthead Capital Management LLC; and Redwood Capital
Management. Counsel to the ad hoc secured group is Thomas E.
Lauria, Esq., at White & Case LLP.
Philip Falcone's Harbinger Capital Partners indirectly owns 96% of
LightSquared's outstanding common stock. Harbinger and certain of
its managed and affiliated funds and wholly owned subsidiaries,
including HGW US Holding Company, L.P., Blue Line DZM Corp., and
Harbinger Capital Partners SP, Inc., are represented in the case
by Stephen Karotkin, Esq., at Weil, Gotshal & Manges LLP.
LIGHTSQUARED INC: Ends May With $207.09 Million in Cash
-------------------------------------------------------
LightSquared Inc. and its affiliates, on July 13, 2012, filed its
monthly operating report for the period from May 14 to May 31,
2012.
The Company posted a net loss of $34.52 million on net revenue of
$2.15 million for the period from May 14 to May 31, 2012.
As of May 31, 2012, the Company had total assets of $4.06 billion,
total liabilities of $2.34 billion and total stockholders' equity
of $1.72 billion.
At the beginning of the period, LightSquared had $207.62 million
in cash. The Company had total cash receipts of $3.64 million and
total cash disbursements of $4.18 million. As a result, at the
end of the period, LightSquared had total cash of $207.09 million.
About LightSquared
LightSquared Inc. and 19 of its affiliates filed Chapter 11
bankruptcy petitions (Bankr. S.D.N.Y. Lead Case No. 12-12080) on
May 14, 2012, as the Company seeks to resolve regulatory issues
that have prevented it from building its coast-to-coast integrated
satellite 4G wireless network.
LightSquared had invested more than $4 billion to deploy an
integrated satellite-terrestrial network. In February 2012,
however, the U.S. Federal Communications Commission told
LightSquared the agency would revoke a license to build out the
network as it would interfere with global positioning systems used
by the military and various industries. In March 2012, the
Company's partner, Sprint, canceled a master services agreement.
LightSquared's lenders deemed the termination of the Sprint
agreement would trigger cross-defaults under LightSquared's
prepetition credit agreements.
LightSquared and its prepetition lenders attempted to negotiate a
global restructuring that would provide LightSquared with
liquidity and runway necessary to resolve its issues with the FCC.
Despite working diligently and in good faith, however,
LightSquared and the lenders were not able to consummate a global
restructuring on terms acceptable to all interested parties,
prompting the bankruptcy filing.
As of the Petition Date, the Debtors employed roughly 168 people
in the United States and Canada. As of Feb. 29, 2012, the Debtors
had $4.48 billion in assets (book value) and $2.29 billion in
liabilities.
LightSquared also sought ancillary relief in Canada on behalf of
all of the Debtors, pursuant to the Companies' Creditors
Arrangement Act (Canada) R.S.C. 1985, c. C-36 as amended, in the
Ontario Superior Court of Justice (Commercial List) in Toronto,
Ontario, Canada. The purpose of the ancillary proceedings is to
request the Canadian Court to recognize the Chapter 11 cases as a
"foreign main proceeding" under the applicable provisions of the
CCAA to, among other things, protect the Debtors' assets and
operations in Canada. The Debtors named affiliate LightSquared LP
to act as the "foreign representative" on behalf of the Debtors'
estates.
Judge Shelley C. Chapman presides over the Chapter 11 case.
Lawyers at Milbank, Tweed, Hadley & McCloy LLP serve as counsel to
the Debtors. Kurtzman Carson Consultants LLC serves as claims and
notice agent.
Counsel to UBS AG as agent under the October 2010 facility is
Melissa S. Alwang, Esq., at Latham & Watkins LLP.
The ad hoc secured group of lenders under the Debtors' October
2010 facility was formed in April 2012 to negotiate an out-of-
court restructuring. The members are Appaloosa Management L.P.;
Capital Research and Management Company; Fortress Investment
Group; Knighthead Capital Management LLC; and Redwood Capital
Management. Counsel to the ad hoc secured group is Thomas E.
Lauria, Esq., at White & Case LLP.
Philip Falcone's Harbinger Capital Partners indirectly owns 96% of
LightSquared's outstanding common stock. Harbinger and certain of
its managed and affiliated funds and wholly owned subsidiaries,
including HGW US Holding Company, L.P., Blue Line DZM Corp., and
Harbinger Capital Partners SP, Inc., are represented in the case
by Stephen Karotkin, Esq., at Weil, Gotshal & Manges LLP.
MARCO POLO: Ends June With $5.18MM in Unrestricted Cash
-------------------------------------------------------
Marco Polo Seatrade B.V., et al., on July 16, 2012, filed its
monthly operating report for the month ended June 30, 2012.
As of June 30, 2012, the Debtor had total assets of
$159.66 million, total liabilities of $58.9 million and total
stockholders' equity of $100.76 million.
The Debtor had gross freight revenues of $1.36 million and a net
loss of $3.21 million for the period Jan. 6 to June 30, 2012.
As of June 30, 2012, the Debtor had unrestricted cash of $5.18
million.
About Marco Polo
Marco Polo Seatrade B.V. operates an international commercial
vessel management company that specializes in providing
commercial and technical vessel management services to third
parties. Founded in 2005, the Company mainly operates under the
name of Seaarland Shipping Management and maintains corporate
headquarters in Amsterdam, the Netherlands. The primary assets
consist of six tankers that are regularly employed in
international trade, and call upon ports worldwide.
Marco Polo and three affiliated entities filed for Chapter 11
protection (Bankr. S.D.N.Y. Lead Case No. 11-13634) on July 29,
2011. The other affiliates are Seaarland Shipping Management
B.V.; Magellano Marine C.V.; and Cargoship Maritime B.V.
Marco Polo is the sole owner of Seaarland, which in turn is the
sole owner of Cargoship, and also holds a 5% stake in Magellano.
The remaining 95% stake in Magellano is owned by Amsterdam-based
Poule B.V., while another Amsterdam company, Falm International
Holding B.V. is the sole owner of Marco Polo. Falm and Poule
didn't file bankruptcy petitions.
The filings were prompted after lender Credit Agricole Corporate
& Investment Bank seized one ship on July 21, 2011, and was on
the cusp of seizing two more on July 29. The arrest of the
vessel was authorized by the U.K. Admiralty Court. Credit
Agricole also attached a bank account with almost US$1.8 million
on July 29. The Chapter 11 filing precluded the seizure of the
two other vessels. The company started a lawsuit against the two
creditors in January 2012.
The cases are before Judge James M. Peck. Evan D. Flaschen,
Esq., Robert G. Burns, Esq., and Andrew J. Schoulder, Esq., at
Bracewell & Giuliani LLP, in New York, serve as the Debtors'
bankruptcy counsel. Kurtzman Carson Consultants LLC serves as
notice and claims agent.
The petition noted that the Debtors' assets and debts are both
more than US$100 million and less than US$500 million.
Tracy Hope Davis, the United States Trustee for Region 2,
appointed three members to serve on the Official Committee of
Unsecured Creditors. The Committee has retained Blank Rome LLP
as its attorney.
Creditor Credit Agricole Corporate and Investment Bank is
represented by Alfred E. Yudes, Jr., Esq., and Jane Freeberg
Sarma, Esq., at Watson, Farley & Williams (New York) LLP.
Gregory M. Petrick, Esq., Ingrid Bagby, Esq., and Sharon J.
Richardson, Esq., at Cadwalader, Wickersham & Taft LLP, in New
York, represents secured creditor and post-petition lender The
Royal bank of Scotland plc.
NORTHSTAR AEROSPACE: Ends June With $1.19 Million in Cash
---------------------------------------------------------
Northstar Aerospace (USA) Inc., on July 20, 2012, filed its
monthly operating report for the month ended June 30, 2012.
The Company posted a net loss of $368,000 for the month ended
June 30, 2012.
As of June 30, 2012, the Company had total assets of $100.96
million, total liabilities of $82.22 million and total
stockholders' equity of $18.74 million.
At the beginning of the month, Northstar Aerospace had $326,000 in
cash. The Company had total cash receipts of $1.25 million and
total cash disbursements of $3.06 million. The Debtor also had
DIP advances of $3.26 million. As a result, at the end of the
month, Northstar Aerospace had total cash of $1.19 million.
About Northstar Aerospace
Chicago, Illinois-based Northstar Aerospace --
http://www.nsaero.com/-- is an independent manufacturer of flight
critical gears and transmissions. With operating subsidiaries in
the United States and Canada, Northstar produces helicopter gears
and transmissions, accessory gearbox assemblies, rotorcraft drive
systems and other machined and fabricated parts. It also provides
maintenance, repair and overhaul of components and transmissions.
Its plants are located in Chicago, Illinois; Phoenix, Arizona and
Milton and Windsor, Ontario. Northstar employs over 700 people
across its operations.
Northstar Aerospace, along with affiliates, filed for Chapter 11
protection (Bankr. D. Del. Lead Case No. 12-11817) in Wilmington,
Delaware, on June 14, 2012, to sell its business to affiliates of
Wynnchurch Capital, Ltd., absent higher and better offers.
Attorneys at SNR Denton US LLP and Bayard, P.A. serve as counsel
to the Debtors. The Debtors have obtained approval to hire Logan
& Co. Inc. as the claims and notice agent.
Certain Canadian affiliates are also seeking protection pursuant
to the Companies' Creditors Arrangement Act, R.S.C.1985, c. C-36,
as amended.
As of March 31, 2012, Northstar disclosed total assets of
$165.1 million and total liabilities of $147.1 million.
Approximately 60% of the assets and business are with the U.S.
Debtors.
At the July 24, 2012 Sale Hearing, the U.S. Bankruptcy Court for
the District of Delaware entered its order approving the sale of
substantially all of the assets of Nortstar Aerospace (USA) Inc.,
et al., to Heligear Acquisition Co. or its designee for the US
Purchased Assets, and Heligear Canada Acquisition Corporation for
the Canadian Purchased Assets.
PINNACLE AIRLINES: Ends June 30 With $31.75 Million in Cash
-----------------------------------------------------------
Pinnacle Airlines Corp., on July 25, 2012, filed its monthly
operating report for the month ended June 30, 2012.
The Company posted a net loss of $28.95 million on total operating
revenues of $80.51 million for the month ended June 30, 2012.
As of June 30, 2012, the Company had total assets of
$896.16 million, total liabilities of $912.22 million and total
stockholders' deficit of $16.06 million.
As of June 30, 2012, Pinnacle Airlines had total cash of
$31.75 million.
A full-text copy of the monthly operating report is available at:
http://ResearchArchives.com/t/s?77b1
About Pinnacle Airlines
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.
Pinnacle Airlines Inc. and its affiliates, including Colgan Air,
Mesaba Aviation Inc., Pinnacle Airlines Corp., and Pinnacle East
Coast Operations Inc. filed for Chapter 11 bankruptcy (Bankr.
S.D.N.Y. Lead Case No. 12-11343) on April 1, 2012.
Judge Robert E. Gerber presides over the case. Lawyers at Davis
Polk & Wardwell LLP, and Akin Gump Strauss Hauer & Feld LLP serve
as the Debtors' counsel. Barclays Capital and Seabury Group LLC
serve as the Debtors' financial advisors. Epiq Systems -
Bankruptcy Solutions serves as the claims and noticing agent. The
petition was signed by John Spanjers, executive vice president and
chief operating officer.
Pinnacle Airlines' balance sheet at Sept. 30, 2011, showed $1.53
billion in total assets, $1.42 billion in total liabilities and
$112.31 million in total stockholders' equity. Debtor-affiliate
Colgan Air, Inc. disclosed $574,482,867 in assets and $479,708,060
in liabilities as of the Chapter 11 filing.
Delta Air Lines, Inc., the Debtors' major customer and post-
petition lender, is represented by David R. Seligman, Esq., at
Kirkland & Ellis LLP.
A seven-member official committee of unsecured creditors has been
appointed in the case. The Committee selected Goodrich
Corporation as its chairperson. The Committee tapped Morrison &
Foerster LLP as its counsel.
PRINCE SPORTS: Ends May With $1.98 Million in Cash
--------------------------------------------------
Prince Sports, Inc., et al., on June 29, 2012, filed its monthly
operating report for the month ended May 31, 2012.
The Debtor reported a net loss of $1.72 million on net sales of
$2.79 million for the month ended May 31, 2012.
As of May 31, 2012, the Debtor had total assets of $51.79 million,
total liabilities of $61.96 million and total stockholders'
deficit of $10.17 million.
At the beginning of May, the Debtor had $1.25 million in cash.
Prince Sports had total cash receipts of $4.20 million and total
cash disbursements of $3.47 million. As a result, at the end of
the month, the Debtor had total cash of $1.98 million.
About Prince Sports
Prince Sports, Inc. and its U.S. affiliates filed voluntary
petitions for Chapter 11 reorganization (Bankr. D. Del. Lead Case
NO. 12-11439) on May 1, 2012, with a Chapter 11 plan that
contemplates the transfer of ownership to Authentic Brands Group
(ABG)-Prince LLC.
Founded in 1970, Prince Sports has a 42-year track record of
developing premium quality products for the racquet sports
industry. The Company pioneered many innovative designs,
including the "oversized" racquet, the "longbody" racquet, and
technology for racquet applications such as Triple Threat, 03 and
EX03. Prince sells its products through brands like "Ektelon,"
which sells racquetball racquets, footwear and gloves and "Viking
Athletics," through which it sells platform tennis paddles, balls
and gloves. Prince is distributed in over 100 countries.
Lincolnshire Management Inc. acquired Prince from Benneton Group,
the parent company of United Colors of Benneton, in 2003.
Lincolnshire Management sold Prince to Nautic Partners in August
2007.
The Debtor has a Chapter 11 plan where (ABG)-Prince LLC, which
acquired the secured debt from GE Capital and Madison Capital,
will be acquiring 100% of the new equity in exchange of the
discharge of the debt.
Attorneys at Pachulski Stang Ziehl & Jones serve as counsel to the
Debtors. The Debtors have also tapped FTI Consultin, Inc., to
provide David J. Woodward as Chief Restructuring Officer, and
provide additional personnel. Epiq Bankruptcy Solutions LLC is the
claims and notice agent.
An official committee of unsecured creditors has been appointed in
the case.
RESIDENTIAL CAPITAL: Has $109 Million Net Loss in June
------------------------------------------------------
Carla Main, substituting for Bloomberg News bankruptcy columnist
Bill Rochelle, reports that Residential Capital LLC filed a
monthly operating report for the period ending June 30 that showed
$109 million in losses in an unaudited statement.
About Residential Capital
Residential Capital LLC, the unprofitable mortgage subsidiary of
Ally Financial Inc., filed for bankruptcy protection (Bankr.
S.D.N.Y. Lead Case No. 12-12020) on May 14, 2012.
Neither Ally Financial nor Ally Bank is included in the bankruptcy
filings.
ResCap, one of the country's largest mortgage originators and
servicers, was sent to Chapter 11 with 50 subsidiaries amid
"continuing industry challenges, rising litigation costs and
claims, and regulatory uncertainty," according to a company
statement.
ResCap disclosed $15.68 billion in assets and $15.28 billion in
liabilities as of March 31, 2012.
ResCap is selling its mortgage origination and servicing
businesses to Nationstar Mortgage LLC, and its legacy portfolio,
consisting mainly of mortgage loans and other residual financial
assets, to Ally Financial. Together, the asset sales are expected
to generate approximately $4 billion in proceeds.
Centerview Partners LLC and FTI Consulting are acting as financial
advisers to ResCap. Morrison & Foerster LLP is acting as legal
adviser to ResCap. Curtis, Mallet-Prevost, Colt & Mosle LLP is
the conflicts counsel. Rubenstein Associates, Inc., is the public
relations consultants to the Company in the Chapter 11 case.
Morrison Cohen LLP is advising ResCap's independent directors.
Kurtzman Carson Consultants LLP is the claims and notice agent.
Ray C. Schrock, Esq., at Kirkland & Ellis LLP, in New York, serves
as counsel to Ally Financial.
Bankruptcy Creditors' Service, Inc., publishes RESIDENTIAL CAPITAL
BANKRUPTCY NEWS. The newsletter tracks the Chapter 11 proceeding
undertaken by affiliates of Residential Capital LLC and its
affiliates (http://bankrupt.com/newsstand/or 215/945-7000).
SAAB CARS: Has $6.95 Million in Cash As of May 31
-------------------------------------------------
Saab Cars North America, Inc., on June 29, 2012, filed its monthly
operating report for the month ended May 31, 2012.
The Company posted a net loss of $596,633 on total net sales of
$1.18 million for the month ended May 31, 2012.
As of May 31, 2012, the Company had total assets of
$56.35 million, total liabilities of $61.10 million and total
stockholders' deficit of $4.74 million.
At the beginning of May, Saab Cars had $6.34 million in cash. The
Company had total cash receipts of $1.31 million and total cash
disbursements of $705,373. As a result, at the end of the month,
Saab Cars had total cash of $6.95 million.
About Saab Cars N.A.
More than 40 U.S.-based Saab dealerships have signed an
involuntary chapter 11 bankruptcy petition for Saab Cars North
America, Inc., (Bankr. D. Del. Case No. 12-10344) on Jan. 30,
2012. The petitioners, represented by Wilk Auslander LLP, assert
claims totaling $1.2 million on account of "unpaid warranty and
incentive reimbursement and related obligations" and/or "parts and
warranty reimbursement." Leonard A. Bellavia, Esq., at Bellavia
Gentile & Associates, in New York, signed the Chapter 11 petition
on behalf of the dealers.
Donlin, Recano & Company, Inc. (DRC), has been retained to provide
claims and noticing agent services to Saab Cars North America,
Inc. in its Chapter 11 case.
The dealers want the vehicle inventory and the parts business to
be sold, free of liens from Ally Financial Inc. and Caterpillar
Inc., and "to have an appropriate forum to address the claims of
the dealers," Leonard A. Bellavia said in an e-mail to Bloomberg
News.
Saab Cars N.A. is the U.S. sales and distribution unit of Swedish
car maker Saab Automobile AB. Saab Cars N.A. named in December an
outside administrator, McTevia & Associates, to run the company as
part of a plan to avoid immediate liquidation following its parent
company's bankruptcy filing.
Saab Automobile AB is a Swedish car manufacturer owned by Dutch
automobile manufacturer Swedish Automobile NV, formerly Spyker
Cars NV. Saab Automobile AB, Saab Automobile Tools AB and Saab
Powertain AB filed for bankruptcy on Dec. 19, 2011, after running
out of cash.
On Feb. 24, 2012, the Court, inconsideration of the petition filed
on Jan. 30, 2012, granted Saab Cars North America, Inc., relief
under Chapter 11 of the Bankruptcy Code.
On March 9, 2012, the U.S. Trustee formed an official Committee of
Unsecured Creditors and appointed these members: Peter Mueller
Inc., IFS Vehicle Distributors, Countryside Volkwagen, Saab of
North Olmstead, Saab of Bedford, Whitcomb Motors Inc., and
Delaware Motor Sales, Inc. The Committee tapped Wilk Auslander
LLP as general bankruptcy counsel, and Polsinelli Shughart as its
Delaware counsel.
UNITED RETAIL: Ends June 30 With $2.24 Million in Cash
------------------------------------------------------
United Retail Group Inc. et al., on July 16 2012, filed its
monthly operating report for the period ended June 30, 2012.
The Debtor reported a net loss of $479,000 for the period ended
June 30, 2012.
As of June 30, 2012, the Debtor had total assets of $2.24 million,
total liabilities of $15.99 million and total stockholders'
deficit of $13.75 million.
The Debtor had total cash receipts of $2.72 million and total cash
disbursements of $484,000. At the end of the period, United
Retail had total cash of $2.24 million.
About United Retail Group
United Retail Group Inc., owner of the Avenue brand of women's
fashion apparel and a subsidiary of Redcats USA, sought Chapter 11
protection (Bankr. S.D.N.Y. Lead Case No. 12-10405) on Feb. 1,
2012, as it seeks to sell the business to Versa Capital Management
for $83.5 million, subject to higher and better offers.
The Company's legal advisor is Kirkland & Ellis LLP; AlixPartners
LLP serves as restructuring advisor and Peter J. Solomon Company
serves as financial advisor and investment banker; and Donlin
Recano & Company Inc. is the notice, claims and administrative
agent. Versa Capital's legal advisor is Sullivan & Cromwell LLP.
Avenue has 433 stores and an e-commerce site --
http://www.avenue.com/. Avenue employs roughly 4,422 employees,
roughly 294 of which are located at Avenue's corporate
headquarters in Rochelle Park, New Jersey or at the Troy
Distribution Facility. The Company disclosed $117.2 million in
assets and $67.3 million in liabilities as of the Chapter 11
filing.
Cooley LLP serves as counsel for the Official Committee of
Unsecured Creditors.
*********
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
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A list of Meetings, Conferences and Seminars appears in each
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related conferences are encouraged. Send announcements to
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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
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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 2012 . All rights reserved. ISSN: 1520-9474.
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