/raid1/www/Hosts/bankrupt/TCR_Public/120905.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
Wednesday, September 5, 2012, Vol. 16, No. 247
Headlines
AMERICAN REALTY: Case Summary & 20 Largest Unsecured Creditors
AMERICAN AIRLINES: US Airways Inks Nondisclosure Agreement
AMERICAN AIRLINES: BA Parent Inks Confidentiality Agreement
AMERICAN AIRLINES: Has Green Light to Reject Labor Deals
AMPAL - AMERICAN: Voluntary Chapter 11 Case Summary
ATHENA SQUARE: Voluntary Chapter 11 Case Summary
B & H LAND: Case Summary & 7 Largest Unsecured Creditors
BEAU VIEW: Has Until Sept. 28 to File Plan of Reorganization
BERKNER PROPERTIES: Case Summary & Unsecured Creditor
BROWNSTONE LOFTS: Files Amended Schedule of Assets and Liabilities
BROWNSTONE LOFTS: Can Employ Coleman Frost as Bankruptcy Counsel
C & C ROAD: Case Summary & 20 Largest Unsecured Creditors
CANO PETROLEUM: Tri-Flow Inc.'s Chapter 11 Case Dismissed
CANTELLO LLC: Involuntary Chapter 11 Case Converted to Chapter 7
CHINA SKY ONE: Faces SEC Charges Over Inflating Financial Results
CONNAUGHT GROUP: Court OKs CBIZ as Taxation Accountants
CAPITAL CENTRE: Case Summary & 9 Largest Unsecured Creditors
CCT RESERVE: Case Summary & 10 Unsecured Creditors
CHAMPION ENTERPRISES: Credit Suisse Did Not Cause Bankruptcy
CHARTER COMMUNICATIONS: 2nd Cir. Rejects R2 and LDT Plan Appeals
CHINA MEDICAL: Chapter 15 Case Summary
CIRCUS AND ELDORADO: Seeks Vote Disqualification
CYPRESS BEND: Case Summary & Largest Unsecured Creditor
DEE ALLEN: James C. Bradshaw Withdraws as Bankruptcy Counsel
DELTA PETROLEUM: Asks Clarification on Plan Order for Fees
DESERT OASIS: Says Estate Fully Administered, Wants Case Closed
DEWEY & LEBOEUF: Citibank Accused of Hiding Firm's Troubles
DEWEY & LEBOEUF: Seeks Extension of Exclusivity Period
DORSEY BUILDERS: Case Summary & 13 Largest Unsecured Creditors
DYNEGY INC: Chevron Drops Objection to Chapter 11 Plan
EASTERN LIVESTOCK: Trustee Stays; Plan Outline Hearing on Friday
EVANS OIL: Court Expands Duties of Auctioneer Soneet Kapila
EVANS OIL: Taps SS&G Parkland for Restructuring Services
FIELDSTONE MORTGAGE: Plan Trust Settles With IRS
FIFTY BELOW: Case Summary & 20 Largest Unsecured Creditors
FOUR K: Voluntary Chapter 11 Case Summary
GALP HIGHCROSS: Plan of Reorganization Declared Effective
GALP WATERS: Plan of Reorganization Declared Effective
H&M OIL: Wants Until Oct. 27 to Propose Chapter 11 Plan
HARPER BRUSH: Court OKs Equity Partners CRB as Investment Banker
HARPER BRUSH: Committee Taps Freeborn & Peters as Counsel
HARPER BRUSH: Court OKs Day Rettig as Committee's Local Counsel
HARPER BRUSH: Court OKs McGladrey as Tax Accountant & Auditors
HARTFORD COMPUTER: Can Use Cash Collateral Thru Sept. 30
HEALTH INSURANCE: A.M. Best Raises Fin'l. Strength Rating to 'B'
HUSSEY COPPER: Seeks More Exclusivity as Insurance for Plan
INTERNATIONAL FAITH: Case Summary & 6 Largest Unsecured Creditors
JHK INVESTMENTS: Case Summary & 14 Largest Unsecured Creditors
LANTERN PARTNERS: Hires Frost Brown as Attorney
LEHMAN BROTHERS: Stipulation Resolves Banque Cantonale Claims
LEHMAN BROTHERS: Settles White & Case Claim
LEO PROPERTIES: Voluntary Chapter 11 Case Summary
LYMAN HOLDING: Court OKs Deloitte Unit to Prepare Tax Returns
MAINLINE EQUIPMENT: Case Summary & 20 Largest Unsecured Creditors
MANLEY INDUSTRIES: Case Summary & 20 Largest Unsecured Creditors
MEDIACOPY TEXAS: Appeals Court Can't Introduce Stay Issues
MERRILL ROAD: Case Summary & 20 Largest Unsecured Creditors
MOTORSPORT RANCH: Racetrack Owes $6.3-Mil. to Wells Fargo
MOTORSPORT RANCH: Hiring Craig Cowgill as Counsel
NECH LLC: Case Summary & Largest Unsecured Creditor
ODYSSEY (IX): Court Appoints Jeffrey Warren as Mediator
PACESETTER FABRICS: Greenberg Glusker OK'd as Successor Counsel
PACIFIC PANORAMA: Case Dismissed After Failing to File Reports
PALISADES 6300: Ch. 11 Case Fully Administered, Wants Case Closed
PALM COAST: Case Summary & 2 Largest Unsecured Creditors
PATRIOT COAL: Senior Noteholders Also Oppose Venue Transfer
PATRIOT COAL: Taps Bowles Rice for Coal and Property Acquisitions
PATRIOT COAL: Taps Jackson Kelly for Mine Safety Violations
PATRIOT COAL: Taps Steptoe to Handle Admin. Safety Litigation
PATRIOT COAL: Taps Thompson Coburn for Lawsuits Against Customers
PEREGRINE DEVELOPMENT: Artman Creative Tapped as Site Planner
PEREGRINE FINANCIAL: No Raise Just Yet for Chief Inside Lawyer
PHYSICIANS CHOICE: Case Summary & 20 Largest Unsecured Creditors
POTOMAC BUSINESS: Can Use IRS, Yellowstone Cash Through Oct. 10
PROTEUS MANUFACTURING: Voluntary Chapter 11 Case Summary
RADLAX GATEWAY: Sept. 19 Hearing on Case Conversion/Dismissal
RAVENWOOD HEALTHCARE: Court OKs Steffes Vingiello as Counsel
RAVENWOOD HEALTHCARE: Court OKs RBC Capital as Investment Banker
RAVENWOOD HEALTHCARE: Patton Boggs Okayed for Medicaid Suits
RAVENWOOD HEALTHCARE: Submits Amended List of Unsecured Creditors
RENEGADE HOLDINGS: Gov't Wants Money Escrowed for Excise Tax Issue
RESIDENTIAL CAPITAL: Court Permits CMFG to Pursue Discovery
RESIDENTIAL CAPITAL: PNC Seeks Stay Relief to Pursue Action
RESIDENTIAL CAPITAL: PHH Mortgage Seeks to Pursue Foreclosure
RESIDENTIAL CAPITAL: SEC Starts Probe on Possible Fraud
RG STEEL: Liquidates Assets; Leaves Worker Without Jobs
ROBERTS HOTELS: Bank of America Withdraws Motion for Stay Relief
ROBERTS HOTELS: CBRE Inc. Approved as Florida/Texas Hotel Broker
ROSWELL FESTIVAL: Case Summary & 5 Largest Unsecured Creditors
SAS VENTURES: Case Summary & 20 Largest Unsecured Creditors
SCO GROUP: Converted to Chapter 7; Continues Suit Against IBM
SMF ENERGY: Committee Can Hire Bast Amron to Probe D&O Claims
SMF ENERGY: Court Approves Ahearn Jasco to Audit 401k Plan
SMF ENERGY: Hires Sentinel Benefits; To Terminate Retirement Plan
SOLYNDRA LLC: Taps Environ Int'l as Environmental Consultant
SOUTHFIELD OFFICE: Case Summary & 20 Largest Unsecured Creditors
SOUTH LAKES DAIRY: Can Use Cash Collateral Through Sept. 19
STANFORD INT'L: SEC Appeals Ruling on SIPC Cover
TAICOM SECURITIES: Chapter 15 Case Summary
TARCO SOUTH: Case Summary & Largest Unsecured Creditor
TCB PROPERTY: Case Summary & 2 Largest Unsecured Creditors
TOM JONES: Women's Wear Retailer Searle Looking for Buyer
TRANSACTA PRIVE: Case Summary & 20 Largest Unsecured Creditors
VITRO SAB: Bondholders Say Egregious Plan Should be Rejected
TROPICANA ENT: 3rd Cir. Rejects Noteholders' Contribution Claim
* 4 Firms Feared Most by In-House Counsel
* S&P's Global Corporate Default Tally Revised to 54 Issuers
* Upcoming Meetings, Conferences and Seminars
*********
AMERICAN REALTY: Case Summary & 20 Largest Unsecured Creditors
--------------------------------------------------------------
Debtor: American Realty Trust, Inc.
1603 LBJ Freeway, Suite 800
Dallas, TX 75234
Bankruptcy Case No.: 12-71453
Chapter 11 Petition Date: August 29, 2012
Court: U.S. Bankruptcy Court
Northern District of Georgia (Atlanta)
Judge: Barbara Ellis-Monro
About the Debtor: The Debtor is a subsidiary of the real estate
giant American Realty Investors Inc. coping with
a $73 million legal judgment from an apartment
purchase that collapsed more than a decade ago.
American Realty Trust, Inc., previously filed
for Chapter 11 protection (Bankr. D. Nev. Case
No. 12-10883) in Las Vegas on Jan. 26, 2012.
The case was later dismissed. Creditors David
M. Clapper, Atlantic XIII, LLC, and Atlantic
Midwest, LLC, sought the dismissal, citing,
among other things, the Debtor has been stripped
of assets prepetition and its ownership
structure changed 10 days before the bankruptcy
filing in an admitted effort to avoid
disclosures to the Securities and Exchange
Commission.
Debtor's Counsel: Bryan E. Bates, Esq.
MCKENNA LONG & ALDRIDGE, LLP
303 Peachtree Street, NE, Suite 5300
Atlanta, GA 30308
Tel: (404) 527-4073
Fax: (404) 527-4198
E-mail: bbates@mckennalong.com
- and ?
Gary W. Marsh, Esq.
MCKENNA LONG & ALDRIDGE, LLP
One Peachtree Center
303 Peachtree Street, Suite 5300
Atlanta, GA 30308
Tel: (404) 527-4000
E-mail: gmarsh@mckennalong.com
Estimated Assets: $50,000,001 to $100,000,000
Estimated Debts: $50,000,001 to $100,000,000
The petition was signed by Steven A. Shelley, vice president.
Debtor's List of Its 20 Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
------ --------------- ------------
Clapper Entities October 11, 2011 $73,000,000
c/o Andrew W. Mychalowych
37000 Grand River Avenue, Suite 350
Farmington, MI 48335
Academy Bank, a division Guarantor $8,000,000
of Armed Forces Bank, N.A.
P.O. Box 26458
Kansas City, MO 64196-6458
Graham Mortgage Corporation Litigation $3,330,859
3838 Oak Loan Avenue, Suite 1500
Dallas, TX 75219
One Bank & Trust, NA Guarantee $95,000
Marquis Aurbach Coffing -- $19,992
Shamoun & Norman LLP 2011 $17,362
Kutak Rock LLP 2009 $16,084
Santoro, Driggs, Walch, Kearne -- $11,381
Marion County 2009-2011 Taxes $6,529
Eddie Vassallo, P.C. 2009 $6,403
Archibald & Associates 2009 $5,000
Taxing Auth. Consulting Serv. 2000-2011 Taxes $3,838
Moye White -- $963
Frisco ISD 2011 Taxes $120
Collin County 2011 Taxes $69
Katy ISD 2011 Taxes $55
Frisco ISD 2011 Taxes $33
Harris County Tax Assessor 2011 Taxes $23
Collin County 2011 Taxes $19
Interstate MUD 2011 Taxes $16
AMERICAN AIRLINES: US Airways Inks Nondisclosure Agreement
----------------------------------------------------------
Susan Carey, writing for The Wall Street Journal, reports that
American Airlines parent AMR Corp. and US Airways Group Inc., said
Friday they have signed a nondisclosure agreement, clearing the
way for the pair to share confidential information so they can
evaluate a potential combination. The companies said they would
"work in good faith" and in "close collaboration" with AMR's
creditors. They said they won't make further public comment
"until the parties have entered into a transaction or discussions
between the parties have been terminated," adding that there is no
assurance that a transaction will happen.
WSJ says terms of the deal couldn't be learned, but it is believed
to be several months in duration and would prohibit US Airways
from talking up the combination publicly or continuing its merger
negotiations with American's unions or its own labor groups.
WSJ also relates US Airways' Association of Flight Attendants
union announced support for the combination alongside American's
Association of Professional Flight Attendants union, already a
vocal proponent.
According to WSJ, in a memo to US Airways employees Friday, CEO
Doug Parker said he is "pleased to be working directly with
American to study a potential merger and we consider this very
good news." He warned that the agreement on confidentiality
doesn't mean the two companies are merging. He also said that as a
result of signing the nondisclosure agreement, "we won't be able
to be as open and candid about the discussions with American as we
usually are about issues that are important to all of us."
WSJ also relates American, in a memo to its managers Friday, said
as part of the merger exploration process, "other parties have
also signed confidentiality agreements, which permit the
confidential exchange of information and discussion between
American and those parties."
About American Airlines
AMR Corp. and its subsidiaries including American Airlines, the
third largest airline in the United States, filed for bankruptcy
protection (Bankr. S.D.N.Y. Lead Case No. 11-15463) in Manhattan
on Nov. 29, 2011, after failing to secure cost-cutting labor
agreements.
AMR, previously the world's largest airline prior to mergers by
other airlines, is the last of the so-called U.S. legacy airlines
to seek court protection from creditors.
American Airlines, American Eagle and the AmericanConnection
carrier serve 260 airports in more than 50 countries and
territories with, on average, more than 3,300 daily flights. The
combined network fleet numbers more than 900 aircraft.
The Company reported a net loss of $884 million on $18.02 billion
of total operating revenues for the nine months ended Sept. 30,
2011. AMR recorded a net loss of $471 million in the year 2010, a
net loss of $1.5 billion in 2009, and a net loss of $2.1 billion
in 2008.
AMR's balance sheet at Sept. 30, 2011, showed $24.72 billion
in total assets, $29.55 billion in total liabilities, and a
$4.83 billion stockholders' deficit.
Weil, Gotshal & Manges LLP serves as bankruptcy counsel to the
Debtors. Paul Hastings LLP and Debevoise & Plimpton LLP Groom Law
Group, Chartered, are on board as special counsel. Rothschild
Inc., is the financial advisor. Garden City Group Inc. is the
claims and notice agent.
Jack Butler, Esq., John Lyons, Esq., Felecia Perlman, Esq., and
Jay Goffman, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP
serve as counsel to the Official Committee of Unsecured Creditors
in AMR's chapter 11 proceedings. Togut, Segal & Segal LLP is the
co-counsel for conflicts and other matters; Moelis & Company LLC
is the investment banker, and Mesirow Financial Consulting, LLC,
is the financial advisor.
Bankruptcy Creditors' Service, Inc., publishes AMERICAN AIRLINES
BANKRUPTCY NEWS. The newsletter tracks the Chapter 11 proceeding
undertaken by AMR Corp. and its affiliates.
(http://bankrupt.com/newsstand/or 215/945-7000).
AMERICAN AIRLINES: BA Parent Inks Confidentiality Agreement
-----------------------------------------------------------
Susan Carey, writing for The Wall Street Journal, reports that the
parent of British Airways, AMR Corp.'s partner in the Oneworld
airline alliance, confirmed on Friday that it had signed a
confidentiality agreement with the U.S. carrier. Willie Walsh,
chief executive of International Consolidated Airlines Group SA,
has said his company is open to making a "small" investment in
AMR. Mr. Walsh also said last month that a deal between AMR and US
Airways -- in which BA used to own a minority stake -- has
"attractions."
About American Airlines
AMR Corp. and its subsidiaries including American Airlines, the
third largest airline in the United States, filed for bankruptcy
protection (Bankr. S.D.N.Y. Lead Case No. 11-15463) in Manhattan
on Nov. 29, 2011, after failing to secure cost-cutting labor
agreements.
AMR, previously the world's largest airline prior to mergers by
other airlines, is the last of the so-called U.S. legacy airlines
to seek court protection from creditors.
American Airlines, American Eagle and the AmericanConnection
carrier serve 260 airports in more than 50 countries and
territories with, on average, more than 3,300 daily flights. The
combined network fleet numbers more than 900 aircraft.
The Company reported a net loss of $884 million on $18.02 billion
of total operating revenues for the nine months ended Sept. 30,
2011. AMR recorded a net loss of $471 million in the year 2010, a
net loss of $1.5 billion in 2009, and a net loss of $2.1 billion
in 2008.
AMR's balance sheet at Sept. 30, 2011, showed $24.72 billion
in total assets, $29.55 billion in total liabilities, and a
$4.83 billion stockholders' deficit.
Weil, Gotshal & Manges LLP serves as bankruptcy counsel to the
Debtors. Paul Hastings LLP and Debevoise & Plimpton LLP Groom Law
Group, Chartered, are on board as special counsel. Rothschild
Inc., is the financial advisor. Garden City Group Inc. is the
claims and notice agent.
Jack Butler, Esq., John Lyons, Esq., Felecia Perlman, Esq., and
Jay Goffman, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP
serve as counsel to the Official Committee of Unsecured Creditors
in AMR's chapter 11 proceedings. Togut, Segal & Segal LLP is the
co-counsel for conflicts and other matters; Moelis & Company LLC
is the investment banker, and Mesirow Financial Consulting, LLC,
is the financial advisor.
Bankruptcy Creditors' Service, Inc., publishes AMERICAN AIRLINES
BANKRUPTCY NEWS. The newsletter tracks the Chapter 11 proceeding
undertaken by AMR Corp. and its affiliates.
(http://bankrupt.com/newsstand/or 215/945-7000).
AMERICAN AIRLINES: Has Green Light to Reject Labor Deals
--------------------------------------------------------
Dow Jones Newswires' Joseph Checkler reports that Bankruptcy Judge
Sean H. Lane on Tuesday said AMR Corp. can reject labor agreements
in place with its pilots union.
The report recounts that Judge Lane in August issued a 106-page
ruling that said AMR couldn't reject its current labor proposals
with the pilots because its latest labor offer forced pilots to
take furloughs -- or unpaid days off -- and because it was too
aggressive in implementing code-sharing agreements that would
allow AMR to share routes with other airlines at a cost savings to
the airline. AMR removed the furloughs and adjusted the code-
sharing provisions and resubmitted its proposal to Judge Lane, who
had supported most of AMR's other original arguments. AMR made
those changes in a filing late last month.
According to Dow Jones, the court's decision places new urgency on
AMR and the Allied Pilots Association to reach a settlement on new
contracts as AMR's merger talks escalate with US Airways Group
Inc. The pilots have said they support a merger with US Airways.
The report relates Judge Lane at Tuesday's hearing said he
sympathizes with the pilots and that he hopes a settlement will
come soon.
The report relates American's spokesman Bruce Hicks, after the
hearing, said the company has worked "very hard" to reach a deal
with the pilots and that it would communicate details of its new
plan in the coming days.
In court on Tuesday, the report notes, a lawyer for the pilots
union said AMR's financial condition has improved since a three-
week trial over labor contracts earlier this year, and that a new
trial should be held.
Dow Jones notes the disagreement centered on what the meaning of
the phrase "business plan" is -- specifically whether AMR's latest
offer of a 17% cut in labor costs related to the pilots, compared
with a 20% cut in its prior offer, constituted evidence of a new
business plan and necessitated another trial. The pilots said the
change, which came after AMR offered similar concessions in
settlements with its mechanics and flight attendants, was part of
a new plan. But Judge Lane said the 17% offer came in
confidential contract negotiations, not in bankruptcy court, and
thus wasn't something he could consider.
Dow Jones relates Paul Hastings LLP's Neal D. Mollen, a lawyer for
AMR, said that while the airline is in the process of changing its
business plan, nothing has been finalized. On the witness stand,
AMR Chief Restructuring Officer Beverly K. Goulet concurred,
saying the original business plan has been "updated" to reflect
settlements with other unions but that no new plan has been
presented.
Dow Jones also reports a lawyer for the union, James & Hoffman
PC's Kathy Krieger, asked Ms. Goulet whether the proposal for a
17% labor-cost savings related to pilots was part of a larger
change to the company's plan. "We did not go back and re-examine
the other components of the business plan," Ms. Goulet said.
About American Airlines
AMR Corp. and its subsidiaries including American Airlines, the
third largest airline in the United States, filed for bankruptcy
protection (Bankr. S.D.N.Y. Lead Case No. 11-15463) in Manhattan
on Nov. 29, 2011, after failing to secure cost-cutting labor
agreements.
AMR, previously the world's largest airline prior to mergers by
other airlines, is the last of the so-called U.S. legacy airlines
to seek court protection from creditors.
American Airlines, American Eagle and the AmericanConnection
carrier serve 260 airports in more than 50 countries and
territories with, on average, more than 3,300 daily flights. The
combined network fleet numbers more than 900 aircraft.
The Company reported a net loss of $884 million on $18.02 billion
of total operating revenues for the nine months ended Sept. 30,
2011. AMR recorded a net loss of $471 million in the year 2010, a
net loss of $1.5 billion in 2009, and a net loss of $2.1 billion
in 2008.
AMR's balance sheet at Sept. 30, 2011, showed $24.72 billion
in total assets, $29.55 billion in total liabilities, and a
$4.83 billion stockholders' deficit.
Weil, Gotshal & Manges LLP serves as bankruptcy counsel to the
Debtors. Paul Hastings LLP and Debevoise & Plimpton LLP Groom Law
Group, Chartered, are on board as special counsel. Rothschild
Inc., is the financial advisor. Garden City Group Inc. is the
claims and notice agent.
Jack Butler, Esq., John Lyons, Esq., Felecia Perlman, Esq., and
Jay Goffman, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP
serve as counsel to the Official Committee of Unsecured Creditors
in AMR's chapter 11 proceedings. Togut, Segal & Segal LLP is the
co-counsel for conflicts and other matters; Moelis & Company LLC
is the investment banker, and Mesirow Financial Consulting, LLC,
is the financial advisor.
Bankruptcy Creditors' Service, Inc., publishes AMERICAN AIRLINES
BANKRUPTCY NEWS. The newsletter tracks the Chapter 11 proceeding
undertaken by AMR Corp. and its affiliates.
(http://bankrupt.com/newsstand/or 215/945-7000).
AMPAL - AMERICAN: Voluntary Chapter 11 Case Summary
---------------------------------------------------
Debtor: Ampal - American Israel Corporation
555 Madison Avenue, 20th Floor
New York, NY 10022
Bankruptcy Case No.: 12-13689
Chapter 11 Petition Date: August 29, 2012
Court: U.S. Bankruptcy Court
Southern District of New York (Manhattan)
Judge: Stuart M. Bernstein
About the Debtor: Ampal-American -- http://www.ampal.com/--
acquired interests primarily in businesses
located in Israel or that are Israel-related.
Ampal-American sought bankruptcy protection in
the U.S. because bankruptcy laws in Israel would
lead to the Company's liquidation.
Debtor's Counsel: Michelle McMahon, Esq.
BRYAN CAVE LLP
1290 Avenue of the Americas
New York, NY 10104
Tel: (212) 541-2000
Fax: (212) 541-1439
E-mail: michelle.mcmahon@bryancave.com
Estimated Assets: $100,000,001 to $500,000,000
Estimated Debts: $100,000,001 to $500,000,000
The Company did not file a list of creditors together with its
petition.
The petition was signed by Irit Eluz, chief financial officer,
senior vice president.
ATHENA SQUARE: Voluntary Chapter 11 Case Summary
------------------------------------------------
Debtor: Athena Square Apartments LLC
9032 Spyglass Place Drive
O' Fallon, MO 63368
Bankruptcy Case No.: 12-48402
Chapter 11 Petition Date: August 29, 2012
Court: United States Bankruptcy Court
Eastern District of Missouri (St. Louis)
Judge: Kathy A. Surratt-States
Debtor's Counsel: Steven Edward Dyer, Esq.
LAW OFFICE OF STEVEN DYER
10805 Sunset Office Drive, Suite 300
Sunset Hills, MO 63127
Tel: (314) 898-6715
Fax: (314) 238-1250
E-mail: jdcpamba@gmail.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 Alan Sheehy, member.
B & H LAND: Case Summary & 7 Largest Unsecured Creditors
--------------------------------------------------------
Debtor: B & H Land Holdings, Inc.
17828 Scarsdale Way
Boca Raton, FL 33496
B & H Land Holdings, Inc.
1127 Poinsettia Drive
Delray Beach, FL 33444
Bankruptcy Case No.: 12-30871
Chapter 11 Petition Date: August 31, 2012
Court: United States Bankruptcy Court
Southern District of Florida (West Palm Beach)
Judge: Erik P. Kimball
Debtor's Counsel: Brad Culverhouse, Esq.
320 S Indian River Dr # 100
Ft Pierce, FL 34950
Tel: (772) 465-7572
E-mail: bradculverhouselaw@gmail.com
Scheduled Assets: $1,999,245
Scheduled Liabilities: $3,378,245
A copy of the Company's list of its seven largest unsecured
creditors filed together with the petition is available for free
at http://bankrupt.com/misc/flsb12-30871.pdf
The petition was signed by Bruce D. Cutler, president.
BEAU VIEW: Has Until Sept. 28 to File Plan of Reorganization
------------------------------------------------------------
Beau View of Biloxi, LLC, according to its case docket, entered
into an agreed order dated Aug. 22, 2012, resolving a motion to
convert or dismiss the Debtor's case one under Chapter 7 of the
Bankruptcy Code.
Henry G. Hobbs, Jr., Acting U.S. Trustee for Region 5, in a second
motion, had asked that the U.S. Bankruptcy Court Southern District
of Mississippi dismiss or convert the Chapter 11 case of to one
under Chapter 7 of the Bankruptcy Code.
The agreed order provides that:
1. by Sept. 15, 2012, the Debtor will pay delinquent quarterly
U.S. Trustee fees;
2. by Sept. 28, 2012, the Debtor will file disclosure statement
and a confirmable plan of reorganization;
3. if the Debtor fails to comply with any of these terms of the
order the case will convert to a Chapter 7 proceeding
without further notice of hearing.
About Beau View of Biloxi
Beau View of Biloxi, LLC, filed a bare-bones Chapter 11 petition
(Bankr. S.D. Miss. Case No. 12-50141) on Jan. 26, 2012. The
Mandeville, Louisiana-based debtor disclosed that it is a Single
Asset Real Estate as defined in 11 U.S.C. Sec. 101 (51B) with
assets and debts of $10 million to $50 million. Judge Katharine
M. Samson presides over the case. J. Walter Newman, IV, Esq., at
Newman & Newman, serves as the Debtor's counsel. The petition was
signed by Richard L. Landry, III, designated representative.
BERKNER PROPERTIES: Case Summary & Unsecured Creditor
-----------------------------------------------------
Debtor: Berkner Properties, Inc.
104 Summerfield Drive
Macon, GA 31210
Bankruptcy Case No.: 12-52457
Chapter 11 Petition Date: August 31, 2012
Court: United States Bankruptcy Court
Middle District of Georgia (Macon)
Debtor's Counsel: Calvin L. Jackson, Esq.
CALVIN L. JACKSON, PC
1259 Russell Parkway
Suite T
Warner Robins, GA 31088
Tel: (478) 923-9611
Fax: (478) 923-1795
E-mail: cljpc@mgacoxmail.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
In its list of 20 largest unsecured creditors, the Company placed
only one entry:
Entity Nature of Claim Claim Amount
------ --------------- ------------
Macon-Bibb County Tax $38,180
Commissioner
Room 200, Bibb County
Courthouse
P.O. Box 4724
Macon, GA 31208-4724
The petition was signed by Diane Berkner, CEO.
BROWNSTONE LOFTS: Files Amended Schedule of Assets and Liabilities
------------------------------------------------------------------
Brownstone Lofts LLC filed with the U.S. Bankruptcy Court for the
Northern District of California its amended schedules of assets
and liabilities, disclosing:
Name of Schedule Assets Liabilities
---------------- ----------- -----------
A. Real Property $0
B. Personal Property $9,040,179
C. Property Claimed as
Exempt
D. Creditors Holding
Secured Claims $12,469,016
E. Creditors Holding
Unsecured Priority
Claims $0
F. Creditors Holding
Unsecured Non-priority
Claims $0
----------- -----------
TOTAL $9,040,179 $12,469,016
A full-text copy of the schedules of assets and liabilities is
available for free at:
http://bankrupt.com/misc/BROWNSTONE_sal_amended.pdf
In its initial schedules, the Debtor disclosed $29,040,050 in
assets and $14,189,156 in liabilities.
About Brownstone Lofts LLC
San Mateo, California-based Brownstone Lofts LLC filed for Chapter
11 bankruptcy (Bankr. N.D. Calif. Case No. 11-33495) on Sept. 26,
2011. Judge Dennis Montali presides over the case. Gregory A.
Rougeau, Esq., at the Law Offices of Manasian and Rougeau, serves
as the Debtor's counsel. The petition was signed by Monica
Hujazi, managing member.
BROWNSTONE LOFTS: Can Employ Coleman Frost as Bankruptcy Counsel
----------------------------------------------------------------
The U.S. Bankruptcy Court for the Northern District of California
has authorized Brownstone Lofts, LLC, to employ Coleman Frost LLP
as general bankruptcy counsel effective as of June 11, 2012.
On June 20, the Court granted the request of the Debtor's previous
counsel, Manasian & Rougeau, to withdraw as attorney. According
to Manasian & Rougeau's motion, the Debtor has not paid any funds
for debt counseling or bankruptcy, as the Debtor's funds were
insufficient to retain counsel. The firm's retainer was initially
paid by a non-insider, non-creditor third party, and later by a
non-creditor affiliate of Monica Hujazi, the sole managing member
of the Debtor.
Coleman will charge the Debtor for services at the rate of $425
per hour. The Debtor has not paid Coleman any money to date.
Ms. Hujasi has guaranteed the Debtor's payment for services
rendered. The guarantee payor has provided the applicant a $7,500
retainer.
To the best of the Debtor's knowledge, Coleman does not hold or
represent any interest adverse to the Debtor's estate.
About Brownstone Lofts LLC
San Mateo, California-based Brownstone Lofts LLC filed for Chapter
11 bankruptcy (Bankr. N.D. Calif. Case No. 11-33495) on Sept. 26,
2011. Judge Dennis Montali presides over the case. Gregory A.
Rougeau, Esq., at the Law Offices of Manasian and Rougeau, serves
as the Debtor's counsel. The Debtor disclosed $29,040,050 in
assets and $14,189,156 in liabilities. In its amended schedules,
the Debtor listed $9,040,179 in assets and $12,469,016 in
liabilities. The petition was signed by Monica Hujazi, managing
member.
C & C ROAD: Case Summary & 20 Largest Unsecured Creditors
---------------------------------------------------------
Debtor: C & C Road Construction, Inc.
1458 Lomaland Drive
El Paso, TX 79935
Bankruptcy Case No.: 12-31646
Chapter 11 Petition Date: August 30, 2012
Court: U.S. 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
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
A copy of the Company's list of its 20 largest unsecured creditors
filed with the petition is available for free at:
http://bankrupt.com/misc/txwb12-31646.pdf
The petition was signed by Alfredo Francisco Corral, president.
CANO PETROLEUM: Tri-Flow Inc.'s Chapter 11 Case Dismissed
---------------------------------------------------------
The U.S. Bankruptcy Court for the Northern District of Texas
dismissed the Chapter 11 case of Tri-Flow, Inc., a debtor-
affiliate of Cano Petroleum, Inc., et al.
Tri-Flow filed with the Court a certificate of no objection in
relation to its motion to dismiss its Chapter 11 petition.
Tri-Flow was included in the bankruptcy filing of the Debtors out
of an abundance of caution and to ensure the Debtors' assets and
equity could be effectively marketed. The Debtors, however, did
not receive any qualified bids for Tri-Flow's assets or equity.
Tri-Flow stated in the motion that it is an Oklahoma corporation
of which Cano purchased the outstanding stock, along with all
outstanding stock of Ladder Companies, Inc. in June 2004. Over
the years and pursuant to various transactions, Tri-Flow sold its
assets and expended its cash such that, eventually, Tri-Flow
exists essentially as a shell company. Tri-Flow's schedules
reflect no assets or liabilities, other than two contingent
liabilities related to executory contracts. No senior-secured or
junior-secured claims have been asserted against Tri-Flow.
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.
The Office of the U.S. Trustee has not appointed an official
committee of unsecured creditors in the case.
The Bankruptcy Court entered an order approving and confirming the
Second Amended Joint Plan of Reorganization of Cano Petroleum,
Inc., and its subsidiaries and approving the Stock Purchase
Agreement, dated as of March 7, 2012, by and among NBI Services,
Inc., and the Debtors, and authorizing the consummation of the
transaction contemplated thereby.
CANTELLO LLC: Involuntary Chapter 11 Case Converted to Chapter 7
----------------------------------------------------------------
Judge Michael Kaplan of the U.S. Bankruptcy for the District of
New Jersey directed the conversion of the involuntary Chapter 11
case of Cantello, LLC, to one under Chapter 7.
Four creditors filed an involuntary Chapter 11 bankruptcy petition
against Lakewood, New Jersey-based Cantello, LLC, (Bankr. D.N.J.
Case No. 12-27005) on July 5, 2012. Judge Michael B. Kaplan
oversees the case. The petitioning creditors are CM & Associates
Construction, owed $913,312; R.C. Structures, Inc., owed $525,000;
Haddad Plumbing & Heating Inc., owed $184,000; and Aleta
Industries, Inc., owed $145,639. The petitioning creditors are
represented by:
Parshhueram Totaram Misir, Esq.
AGOVINO & ASSELTA, LLP
330 Old Country Road, Suite 201
Mineola, NY 11501
Tel: 516-248-9880
Fax: 516-248-9879
E-mail: pmisir@agovinoasselta.com
CHINA SKY ONE: Faces SEC Charges Over Inflating Financial Results
-----------------------------------------------------------------
The Securities and Exchange Commission charged a China-based
company and its chief executive with fraud for recording fake
sales of a weight loss product to inflate revenues in the
company's financial statements by millions of dollars.
The SEC alleges that China Sky One Medical Inc. falsely stated in
2007 annual and quarterly reports that it had entered into a
strategic distribution agreement with a Malaysian company that
would become the "exclusive" distributor of CSKI's "slim patch" in
Malaysia and generate $1 million per month in sales. However, the
company never actually entered into any such agreement. CSKI
instead created approximately $19.8 million in phony export sales
to Malaysia that were recorded as revenue in its financial results
for 2007 and 2008. CEO Yan-qing Liu certified the overstated
financial results, which appear in CSKI's financial statements
through 2010 and continue to impact the company's retained
earnings on its balance sheet.
"Accurate and reliable financial reporting is the bedrock of our
capital markets, and CSKI blatantly defrauded investors by
fabricating sales and overstating its financial results," said
John M. McCoy III, Associate Director of the SEC's Los Angeles
Regional Office
According to the SEC's complaint filed in U.S. District Court for
the Central District of California, CSKI is based Harbin, China.
In addition to weight loss patches, the company produces and sells
sprays, ointments, and other Chinese traditional pain relief and
health and beauty products. CSKI became a public company trading
on the U.S. markets through a reverse merger in May 2006.
The SEC alleges that after CSKI devised the purported strategic
distribution agreement with Takasima Industries -- which is a
Malaysian fitness equipment manufacturer and retailer -- CSKI went
on to falsely report export sales to Malaysia of more than $12.2
million for 2007, which constituted 25% of its total revenues.
CSKI then falsely recorded $7.5 million (8.2% of total revenues)
in such sales for 2008. Virtually all of CSKI's reported sales to
Malaysia via Takasima were bogus. Takasima only purchased
$167,542 in slim patches from CSKI in 2007, and none in 2008. And
it never entered into any distribution agreement with CSKI and
never undertook -- much less satisfied -- any minimum purchase
commitment.
According to the SEC's complaint, CSKI also falsely claimed in its
public filings that its top two customers for 2007 were sales
agents for Takasima. CSKI identified those customers as Ningbo
Yuehua International Trading Company and Guangzhou Xinghe
International Trading Company, which collectively accounted for
the phony 25% of CSKI's total revenues for 2007. CSKI claimed
that all of these purported sales to Ningbo Yuehua and Guangzhou
Xinghe went through Takasima, while in fact Takasima never had any
relationship with these two entities.
CSKI and Liu are charged with violating Section 17(a) of the
Securities Act of 1933, Section 10(b) of the Securities Exchange
Act of 1934 and Rule 10b-5, and various Exchange Act provisions
including corporate reporting, recordkeeping, internal controls,
and false statements to auditors.
The SEC's complaint seeks financial penalties against CSKI and Liu
as well as disgorgement of ill-gotten gains by Liu, who personally
benefited from the overstated financial statements through the
company's 2008 private placement of securities. The SEC also
seeks to have Liu reimburse CSKI for certain incentive-based
compensation he received during the period affected by the fraud
pursuant to Section 304 of the Sarbanes-Oxley Act, and to have Liu
barred from acting as an officer or director of a public company.
The SEC also seeks to have CSKI and Liu permanently enjoined from
future violations of these provisions of the federal securities
laws.
In addition to the court action, the SEC instituted administrative
proceedings to determine whether to revoke or suspend registration
of CSKI's securities due to the company's failure to file its
annual report for 2011 or any quarterly reports for 2012.
The SEC's investigation, which is continuing, has been conducted
by Junling Ma, Rhoda Chang, and Marshall S. Sprung of the SEC's
Los Angeles Regional Office. The SEC's Cross Border Working Group
-- which focuses on U.S. companies with substantial foreign
operations -- and the SEC's Office of International Affairs
assisted in the investigation. The SEC's litigation will be led
by David Van Havermaat.
CONNAUGHT GROUP: Court OKs CBIZ as Taxation Accountants
-------------------------------------------------------
The Connaught Group, Ltd., et al., have sought and obtained
approval to hire CBIZ MHM, LLC as special taxation accountants to
perform all accounting services on behalf of the Debtors in
connection with the preparation and filing of federal and state
tax returns for the year ended Dec. 31, 2011.
During the year prior to the Petition Date, in accordance with its
usual billing and receipt practices relative to the Debtors, CBIZ
received a total of $251,293 in the aggregate from the Debtors in
relation to such services.
The Debtors proposed that CBIZ's compensation postpetition be
based on the hourly rate for each accounting professional or
paraprofessional who performs services for or on behalf of the
Debtors as then established and in effect for such professional at
CBIZ. The hourly billing rates at CBIZ are $600-$650 for
shareholders, $350-$480 for managers, and $180-$250 for staff.
CBIZ will also seek reimbursement for administrative and
processing charges incurred in connection with the representation.
The Debtors believe that neither CBIZ nor any CBIZ professional
holds or represents an interest adverse to the Debtors in the
matters upon which CBIZ is to be employed.
About Connaught Group
The Connaught Group, Ltd. and four of its affiliates, Limited
Editions for Her of Nevada LLC; Limited Editions for Her of
Branson LLC; Limited Editions for Her LLC; and WDR Retail Corp.
filed separate Chapter 11 bankruptcy petitions (Bankr. S.D.N.Y.
Lead Case No. 12-10512) on Feb. 9, 2012.
New York-based Connaught Group designs and has manufactured high-
end women's wear and then sells the finished clothing through an
innovative sales system outside the normal retail chain originally
created in 1981 by the Debtors' founder and iconic designer,
William D. Rondina. The Company's sales are made primarily
through independent contractors who sell the clothing to their own
clients in private showings. Through the Wardrobe Consultants,
the Debtors are able to offer the personalized service and
attention to detail absent from the conventional shopping
experience. As of the Petition Date, the Debtors are affiliated
with more than 1,300 Wardrobe Consultants. The Debtors also
operate 10 outlet stores throughout the country, but the Debtors
primarily only sell last season's clothing and other merchandise
to be liquidated at these stores.
A non-debtor Canadian subsidiary, The Connaught Group ULC, sells
the Debtors' clothing in eight outlet stores in Canada. Three of
the Canadian stores are leased by The Connaught Group, Ltd.
Judge Stuart M. Bernstein presides over the case.
In March, the Debtors obtained approval to hire (i) the law firm
of Fulbright & Jaworski L.L.P. as counsel, (ii) Consensus Advisory
Services and Consensus Securities LLC as financial advisors nunc
pro tunc to the Petition Date, (iii) Richter Consulting LLC as
financial advisor, to, among others, provide advice on
identification of business assets and the disposition of assets,
(iv) Zygote Associates LLC to provide Maury Satin as chief
restructuring officer, and (v) Kurtzman Carson Consultants LLC as
administrative agent, and claims and noticing agent.
The Official Committee of Unsecured Creditors in April obtained
approval to retain Lowenstein Sandler PC as counsel nunc pro tunc
to Feb. 15, 2012. The Creditors Committee also obtained approval
to retain BDO Consulting as financial advisor and BDO Capital
Advisors LLC as investment banker.
JPMorgan Chase is represented in the case by Andrew C. Gold, Esq.,
at Herrick, Feinstein LL. Citibank is represented by Boris I.
Mankovetskiy, Esq., at Sills Cummis & Gross P.C.
The Connaught Group, Ltd., disclosed $50,644,694 in assets and
$61,303,340 in liabilities. Limited Editions for Her LLC
disclosed $3,339,174 in assets and $15,888,714 in liabilities.
Limited Editions for Her of Nevada LLC disclosed $979,926 in
assets and $12,395,949 in liabilities. Limited Editions for Her
of Branson LLC listed $3,339,174 in assets and $15,888,714 in
liabilities. WDR Retail Corp. disclosed $0 in assets and
$12,395,949 in liabilities. Connaught Group Limited was the 100%
shareholder of each of LEFH Nevada, LEFH Branson, LEFH, and WDR.
Connaught Group filed a Chapter 11 plan in June that could pay
unsecured creditors 55% or more. The disclosure statement,
approved at a July hearing, stated that the recovery for unsecured
creditors will range between 21% and 55%. The recovery could be
higher still if lawsuits are victorious. Unsecured claims range
from $17.5 million to $20 million, according to the disclosure
statement.
CAPITAL CENTRE: Case Summary & 9 Largest Unsecured Creditors
------------------------------------------------------------
Debtor: The Capital Centre, LLC
117 Lions Gate Dr.
Cary, NC 27518
Bankruptcy Case No.: 12-06277
Chapter 11 Petition Date: August 31, 2012
Court: United States Bankruptcy Court
Eastern District of North Carolina (Wilson)
Judge: Stephani W. Humrickhouse
Debtor's Counsel: William P. Janvier, Esq.
JANVIER LAW FIRM, PLLC
1101 Haynes Street, Suite 102
Raleigh, NC 27604
Tel: (919) 582-2323
Fax: (866) 809-2379
E-mail: bill@janvierlaw.com
Scheduled Assets: $1,648,140
Scheduled Liabilities: $1,298,772
A copy of the Company's list of its nine largest unsecured
creditors filed together with the petition is available for free
at http://bankrupt.com/misc/nceb12-06277.pdf
The petition was signed by Scott Roberts, owner.
CCT RESERVE: Case Summary & 10 Unsecured Creditors
--------------------------------------------------
Debtor: CCT Reserve, LLC
fka Harris Street Properties
aka CCT Reserve
P.O. Box 671048
Marietta, GA 30066
Bankruptcy Case No.: 12-71670
Chapter 11 Petition Date: August 31, 2012
Court: United States Bankruptcy Court
Northern District of Georgia (Atlanta)
Judge: Paul W. Bonapfel
Debtor's Counsel: David G Bisbee, Esq.
LAW OFFICE OF DAVID G. BISBEE
2929 Tall Pines Way
Atlanta, GA 30345
Tel: (770) 939-4881
Fax: (770) 783-8595
E-mail: bisbeed@bellsouth.net
Scheduled Assets: $4,208,578
Scheduled Liabilities: $12,894,576
A copy of the Company's list of its 10 largest unsecured creditors
filed together with the petition is available for free at
http://bankrupt.com/misc/ganb12-71670.pdf
The petition was signed by Edward L. Terry, manager.
Affiliates that filed separate Chapter 11 petitions:
Petition
Debtor Case No. Date
------ -------- ----
Hampton Homes, Inc. 09-87296 10/15/2009
Canton Commercial Holdings LLC 10-67891 3/17/2010
Duluth 120 Corp. 11-56025 2/18/2011
Limehouse Village LLC 11-57604 3/11/2011
CHAMPION ENTERPRISES: Credit Suisse Did Not Cause Bankruptcy
------------------------------------------------------------
Bankruptcy Judge Kevin Gross cleared Credit Suisse AG, Cayman
Islands Branch, from a lawsuit commenced by unsecured creditors of
Champion Enterprises, Champion Home Builders Co., Inc., and their
related entities. The Official Committee of Unsecured Creditors
claims that Credit Suisse AG, Cayman Islands Branch breached
provisions of a 2005 credit agreement between and among Champion,
its Lenders and CSAG as Administrative Agent. The alleged
breaches consisted of assignments of Champion's senior debt to MAK
Capital Fund LP, a significant equity holder of Champion for
several years. The Committee further alleges that CSAG also
breached its duty of good faith and fair dealing. The Committee
seeks damages and the disallowance of any claims by CSAG. CSAG
disputes the Committee's claims, contending it did not breach the
Credit Agreement, the Committee is estopped from asserting claims
because of the conduct Champion, that Champion released its claims
and, in any event the Committee is unable to prove the alleged
breaches caused any damage.
In its ruling, the Court said CSAG breached the Credit Agreement
but that the Committee did not prove the breach caused Champion's
bankruptcy or resulted in damages. Accordingly, the Court
dismissed the claims against CSAG and entered judgment in favor of
CSAG.
Champion was declared in default under the loan in the second
quarter of 2009. As of July 2009, Champion had no options for
raising either debt or equity capital and its attempts to sell
various business operations to raise cash had failed. The secured
lenders rejected a proposed 18-month amendment to the loan
covenants for a variety of reasons, including concerns about the
Company's "struggling" financial condition and liquidity,
historical inability to meet its forecasts, and the deteriorating
housing market.
Champion initially blocked MAK from participating in the lending
consortium but later reversed on its position.
Champion's assets were sold in a Court-supervised Section 363
sale. Morgan Joseph, the Company's financial advisors, had
targeted 170 potential investors and received a total of 12
indications of interest in a sale process that spanned several
months. Champion, despite the strenuous efforts by management and
Morgan Joseph, did not receive any viable offers to purchase the
company prior to the Sec. 363 sale. At no time did any potential
buyer express an interest in paying more than roughly $130 million
for Champion. Ultimately, the Court approved a "stalking horse"
bid led by three lenders, and no qualified competing bids were
submitted by the Feb. 24, 2010 deadline. On March 2, 2010, the
Court held the sale hearing, approved the sale, and authorized the
parties to consummate the transaction pursuant to the terms of the
asset purchase agreement, as amended, allowing certain of the
Lenders to credit bid their prepetition claims against Debtors.
Judge Gross' decision noted the Lenders were entitled to recover
the full amount of their secured claims -- roughly $227 million
(plus interest) -- before the unsecured creditors stood to recover
anything. The $227 million amount included roughly $187 million
of Champion Loans and $40 million owed pursuant to the DIP Credit
Agreement.
Judge Gross also noted that the market value of Champion's
securities had declined rapidly since the beginning of 2008. On
Dec. 29, 2007, Champion had a total enterprise valuation of $908.8
million. This value declined by almost half by the beginning of
2009. ((Champion's TEV was $480.4 million at Jan. 3, 2009).) By
July 4, 2009, the TEV of Champion's securities was only 20% of its
value at the beginning of that year -- $98 million -- and roughly
$89 million below the value of the Champion Loans.
The case is THE OFFICIAL COMMITTEE OF UNSECURED CREDITORS OF
CHAMPION ENTERPRISES, INC., Plaintiffs, v. CREDIT SUISSE,
INDIVIDUALLY AND AS AGENT AND CLASS REPRESENTATIVE FOR VARIOUS
PARTICIPATING LENDERS IN THE DEBTORS' PREPETITION LENDING
FACILITY; CREDIT SUISSE (USA) LLC; THE LENDERS LISTED IN EXHIBIT
A; MAK CAPITAL FUND LP; and WELLS FARGO BANK, N.A., as collateral
agent pursuant to a collateral trust agreement dated October 31,
2005, Defendants, Adv. Proc. No. 10-50514 (Bankr. D. Del.). A
copy of the Court's Aug. 30, 2012 Opinion is available at
http://is.gd/c8Ykg4from Leagle.com.
Donna L. Harris, Esq., at PINCKNEY, HARRIS & WEIDINGER, LLC, and
Jonathan M. Landers, Esq., Jerome M. Congress, Esq., Anna C.
Dover, Esq., and Henry J. Kelston, Esq., at MILBERG LLP, represent
the Official Committee of Unsecured Creditors.
Robert S. Brady, Esq., Matthew B. Lunn, Esq., and Margaret
Whiteman Greecher, Esq., at YOUNG CONAWAY STARGATT & TAYLOR, LLP,
and Joseph T. Baio, Esq., Stephen B. Vogel, and Teri Seigal, Esq.,
at WILKIE FARR & GALLAGHER LLP, argue for CSAG.
About Champion Enterprises
Troy, Michigan-based Champion Enterprises, Inc., and its
subsidiaries were international manufacturers of factory-built
homes and steel-framed modular buildings, with operations in the
United States, Canada and the United Kingdom. Buildings
constructed by Champion and its subsidiaries consisted of both
single and multi-module units designed for either commercial or
residential purposes. Champion products ranged from single-module
HUD-Code homes to sophisticated commercial structures such as
hotels.
Champion Enterprises, Champion Home Builders Co., Inc., and their
various affiliates filed for Chapter 11 protection (Bankr. D. Del.
Case No. 09-14019) on Nov. 15, 2009. James E. O'Neill, Esq.,
Laura Davis Jones, Esq., Mark M. Billion, Esq., and Timothy P.
Cairns, Esq., at Pachulski Stang Ziehl & Jones LLP, assisted
Champion in its restructuring effort. The Company disclosed
$576,527,000 in asset and $521,337,000 in liabilities as of
October 3, 2009.
In March 2010, Champion Enterprises received final court approval
to sell its domestic and international operations. An investor
group consisting of affiliates of Centerbridge Partners, L.P., MAK
Capital Fund LP and Sankaty Advisors, LLC invested $50 million in
new capital to support the operations and growth initiatives of
the new company. The transaction was supported by a group of
Champion's existing lenders who, together with the lead investors,
agreed to exchange 100% of existing debt under Champion's
prepetition and DIP senior secured credit agreements for equity in
the new company and a $40 million senior secured five year note.
Champion's bankruptcy case has been renamed CEI Liquidation
Estates following the closing of the sale.
In May 2011, Champion's Second Amended Joint Chapter 11 Plan of
Liquidation became effective. Under the Plan, the Debtors
transfered certain causes of action to a Creditor Trust that would
administer and liquidate them for the benefit of general unsecured
Creditors. Any recovery to general unsecured creditors would be
entirely dependant on the results of any prosecution of
litigation.
CHARTER COMMUNICATIONS: 2nd Cir. Rejects R2 and LDT Plan Appeals
----------------------------------------------------------------
The U.S. Court of Appeals for the Second Circuit upheld lower
court rulings dismissing the appeals to the confirmed
prenegotiated Chapter 11 plan of Charter Communications Inc. and
its affiliates. The Second Circuit agreed with the lower courts
that the appeals lodged by Law Debenture Trust Company of New
York, as indenture trustee for certain notes issued by Charter
CCI, and R2 Investments, LDC, a CCI shareholder, are "equitably
moot".
In 2008, Charter, the nation's fourth-largest cable television
company and a leading provider of cable and a broadband service,
was operationally sound but carried almost $22 billion in debt at
various levels of its corporate structure. After the September
2008 collapse of Lehman Brothers and the financial crisis that
ensued, Charter could no longer service its debt due to the
tightening credit markets, Charter's excessive leverage, and lower
valuations of companies in the cable sector. Charter began
negotiating with Paul G. Allen, a major investor whose ownership
stake gave him control of the company, and a group of junior
bondholders -- the Crossover Committee. The negotiations
culminated in a settlement that contemplated Charter's
prenegotiated reorganization in bankruptcy. Charter then filed
for Chapter 11 bankruptcy, using the Allen Settlement as the
cornerstone of its prenegotiated Plan.
Left out of the negotiations, however, were LDT, the trustee for
$479 million in aggregate principal of convertible notes issued by
CCI; R2, a CCI shareholder; and J.P. Morgan Chase N.A., the holder
of Charter's senior debt. The entities had no input into the
Allen Settlement or the prepackaged Plan.
Charter's reorganization strategy was driven by the goal of
reinstating its senior credit facility with JPMorgan -- that is,
curing any breaches in its contracts with JPMorgan so that
JPMorgan would be classified as an unimpaired creditor. Charter
wanted to avoid renegotiating its senior debt during the financial
turmoil of late 2008 and early 2009 because it believed such
renegotiation would at best lead to a higher interest rate and at
worst result in Charter being closed off to new financing
altogether. Charter thus needed to structure its reorganization
in a way that would avoid triggering a default under the credit
agreement with JPMorgan. One condition Charter had consented to
in the credit agreement was that Mr. Allen would retain 35% of the
ordinary voting power of Charter Communications Operating, LLC,
the obligor under the senior credit agreements. For the
reorganization plan to succeed, Charter thus needed to induce Mr.
Allen to retain these voting rights, even though most of his
investment in Charter would be wiped out. In addition, for
Charter to preserve roughly $2.85 billion of net operating losses,
a valuable tax attribute, it needed Mr. Allen to forgo exercising
contractual exchange rights and to maintain a 1% interest in
Charter Communications Holding Company, LLC. Because Charter's
main goals in restructuring, namely reinstating its senior debt
and obtaining tax savings though preserving net operating losses,
required Mr. Allen's cooperation, Mr. Allen alone was in a
position to provide "uniquely personal" benefits to Charter.
Following "a spirited negotiation in which sophisticated
adversaries and their expert advisors bargained with each other
aggressively and in good faith," Charter, the Crossover Committee,
and Mr. Allen agreed to the Allen Settlement. As part of the
Settlement, Mr. Allen agreed to retain a 35% voting interest in
CCO and a 1% ownership interest in Holdco, and to refrain from
exercising his contractual exchange rights. In return for these
concessions, Mr. Allen would receive $375 million, of which $180
million was classified as pure settlement consideration.
The Allen Settlement further provided for a "$1.6 billion rights
offering, a stepped-up tax basis in a significant portion of
[Charter's] assets, and the purchase of [Allen's]" preferred
shares in CC VIII, LLC, a Charter subsidiary. Mr. Allen also
successfully negotiated for a liability release (other third
parties, including the management of Charter, were released as
well). Under the reorganization Plan that resulted from the Allen
Settlement, the CCI noteholders, represented by LDT, would receive
approximately 32.7% of their claims, and R2 and other equity
holders of CCI would receive nothing.
On Nov. 17, 2009, after a 19-day hearing, the bankruptcy court
overruled all objections and confirmed the Plan as submitted by
Charter. The following week, the bankruptcy court denied R2 and
LDT's motions for an emergency stay of the confirmation order.
The district court (Sidney H. Stein, Judge, sitting in Part I)
denied a stay pending appeal to that court, and the confirmation
order and the Plan took effect on Nov. 30, 2009. Charter
immediately took actions under the Plan, including cancelling the
equity issued by the prepetition Charter, issuing shares in the
reorganized Charter, converting notes issued by the prepetition
Charter entities into new notes, and issuing warrants to Charter's
prepetition noteholders.
R2 and LDT objected to the Plan at every stage of these
proceedings. Before the district court, they raised several
overlapping challenges to the Plan's confirmation. Their
objections, viewed broadly, related to the Allen Settlement, the
bankruptcy court's valuation of Charter, and compliance with the
Bankruptcy Code's cramdown provisions for approving a plan over
the objections of creditors. Charter, Mr. Allen, and the
Committee of Unsecured Creditors argued that, whatever the merit
of R2's and LDT's legal claims, the relief they sought could not
be granted without upsetting the already-consummated Plan and that
the doctrine of equitable mootness barred the appeals.
The district court -- and now, the Second Circuit -- agreed and
dismissed the appeals as equitably moot.
The Second Circuit appeals are R2 INVESTMENTS, LDC, Appellant, v.
CHARTER COMMUNICATIONS, INC., CCH I, LLC, CCH I CAPITAL
CORPORATION, CCH II, LLC, CCH II CAPITAL CORPORATION, Debtors-
Appellees, PAUL G. ALLEN, OFFICIAL COMMITTEE OF UNSECURED
CREDITORS, Appellees; LAW DEBENTURE TRUST COMPANY OF NEW YORK,
Appellant, v. CHARTER COMMUNICATIONS, INC., CCH I, LLC, CCH I
CAPITAL CORPORATION, CCH II, LLC, CCH II CAPITAL CORPORATION,
Debtors-Appellees, PAUL G. ALLEN, OFFICIAL COMMITTEE OF UNSECURED
CREDITORS, Appellees. Docket Nos. 11-1710-bk and 11-1726-bk, (2nd
Cir.).
A copy of the Second Circuit's Aug. 31, 2012 Opinion, penned by
Circuit Judge John M. Walker, Jr., is available at
http://is.gd/eyznExfrom Leagle.com.
Lawrence S. Robbins, Esq., (Mark T. Stancil, Matthew M. Madden, on
the brief), at Robbins, Russell, Englert, Orseck, Untereiner &
Sauber LLP, Washington, D.C., argue for R2 Investments, LDC.
Andrew W. Hammond, Esq., at White & Case LLP, New York, N.Y.,
argues for Law Debenture Trust Company of New York.
Jeremy A. Berman, Esq., (Robert E. Zimet, Jay M. Goffman, Sean J.
Young, on the brief), at Skadden, Arps, Slate, Meagher & Flom LLP,
New York, N.Y., represent Paul G. Allen.
Equitable Mootness
Bill Rochelle, the bankruptcy columnist for Bloomberg News,
reports that in the opinion on Aug. 31, the Second Circuit shed
light on the murky doctrine of equitable mootness as grounds for
dismissing an appeal from a confirmation order. In last week's
23-page opinion, Circuit Judge John M. Walker Jr. agreed the
appeal was moot, although on more narrow grounds. Judge Walker
began his analysis by addressing a question dividing the courts of
appeal. Is the lower court's order subject to de novo review or
the abuse of discretion standard? Judge Walker came down on the
side of abuse of discretion.
The report notes that on the merits, Judge Walker said there is no
per se rule making an appeal moot if confirmation wasn't stayed
pending appeal. He said the court must "examine the actual
effects of the requested relief" to determine if a successful
appeal would unjustly upset the reorganization plan. If the
settlement underlying the plan were unlawful, Judge Walker said
that forcing the parties to disgorge "ill-gotten gains" wouldn't
be inequitable. Similarly, striking releases in favor of third
parties wouldn't be prohibited were the appeal to succeed.
Nonetheless, Judge Walker said granting relief on appeal by
modifying the plan wasn't possible because it would require
"unraveling complex transactions."
Looking at the facts, Judge Walker, the report discloses, said
that taking $180 million away from a settling party would allow
that party to renegotiate the deal. There being no assurance how
the parties would come out if forced to renegotiate, modifying the
plan on appeal "would throw into doubt the viability of the entire
plan." Judge Walker was saying in substance that an appellate
court can't simply extract an offending provision from a plan and
allow the remainder to continue. Rather, if the offending
provision was part of a larger agreement, the parties are entitled
to renegotiate, with the result that the appeal can be mooted.
The Bloomberg report also discloses that Judge Walker also ruled
that rearranging distributions among creditor groups would render
the appeal moot under the equitable mootness doctrine. Charter's
plan reduced debt by $8 billion and cut annual interest expense by
$830 million. Charter's plan reinstated $11.8 billion in secured
debt and was funded in part by a $1.6 billion equity rights
offering and $1.7 billion in refinancings. Existing stock was
canceled while trade suppliers were paid in full. The stock for
St. Louis-based Charter rose 80 cents on Aug. 31 to $77.80 in
Nasdaq Stock Market trading.
About Charter Communications
Based in St. Louis, Missouri, Charter Communications, Inc. (Pink
OTC: CHTRQ) -- http://www.charter.com/-- is a broadband
communications company and the fourth-largest cable operator in
the United States.
Charter Communications and more than a hundred affiliates filed
voluntary Chapter 11 petitions on March 27, 2009 (Bankr. S.D.N.Y.
Case No. 09-11435).
The Hon. James M. Peck presides over the cases. Richard M. Cieri,
Esq., Paul M. Basta, Esq., and Stephen E. Hessler, Esq., at
Kirkland & Ellis LLP, in New York, served as counsel to the
Debtors, excluding Charter Investment Inc. Albert Togut, Esq., at
Togut, Segal & Segal LLP in New York, served as Charter
Investment, Inc.'s bankruptcy counsel.
Charter Communications emerged from Chapter 11 under its pre-
arranged Joint Plan of Reorganization, which was confirmed by the
Court on Nov. 17, 2009. The Plan was declared effective Nov. 30,
2009.
CHINA MEDICAL: Chapter 15 Case Summary
--------------------------------------
Chapter 15 Debtor: China Medical Technologies, Inc.
c/o Krys Global
Governors Square, Building 6
Second Floor
23 Lime Tree Bay Avenue, PO Box 31237
Grand Cayman KY1-1205
Foreign
Representative: Kenneth M. Krys, as joint official liquidator
Chapter 15 Case No.: 12-13736
Chapter 15 Petition Date: August 31, 2012
Court: Southern District of New York (Manhattan)
Judge: Robert E. Gerber
About the Debtor: China Medical Technologies Inc., a maker of
diagnostic products, filed a Chapter 15
bankruptcy petition in New York to locate money
fraudulently transferred by its principals.
The Debtor, which has been taken over by a
trustee, is undergoing corporate winding-up
proceedings before the Grand Court of the Cayman
Islands.
Foreign
Representative's
Counsel: Curtis C. Mechling, Esq.
STROOCK & STROOCK & LAVAN, LLP
180 Maiden Lane
New York, NY 10038
Tel: (212) 806-5609
Fax: (212) 806-6006
E-mail: cmechling@stroock.com
Estimated Assets: $100,000,001 to $500,000,000
Estimated Debts: $100,000,001 to $500,000,000
The petition was signed by Kenneth M. Krys.
CIRCUS AND ELDORADO: Seeks Vote Disqualification
------------------------------------------------
BankruptcyData.com reports that Circus and Eldorado Joint Venture
filed with the U.S. Bankruptcy Court a motion for an order
disqualifying the votes of Black Diamond Capital Management and
the vote of any noteholder that opted to reject the Debtors' Plan.
Alternatively, the motion seeks an order allowing the Debtors to
resolicit those noteholders' votes on the Debtors' Plan and
awarding sanctions against Black Diamond in an amount necessary to
compensate the Debtors and their estates for all fees and costs
incurred by estate professionals in connection with Black
Diamond's wrongful conduct and any other amounts the Court deems
appropriate.
The Debtors assert, "In contrast to the Debtors' good faith
efforts to pursue a restructuring within the boundaries of the
Bankruptcy Code and pursuant to a process approved by the Court,
Black Diamond has chosen to attempt to run roughshod over not only
the Debtor's exclusive right to solicit votes to accept the
Debtors' Plan, but also the Court's approved solicitation process,
by improperly -- and without requisite Court approval --
attempting to induce other creditors to reject the Debtors' Plan
About Circus and Eldorado
Circus and Eldorado Joint Venture and Silver Legacy Capital Corp.
filed for Chapter 11 bankruptcy (Bankr. D. Nev. Case Nos. 12-51156
and 12-51157) on May 17, 2012.
Circus and Eldorado Joint Venture owns and operates the Silver
Legacy Resort Casino, a 19th century silver mining themed hotel,
casino and entertainment complex located in downtown Reno, Nevada.
The casino and entertainment areas at Silver Legacy are connected
by skyway corridors to the neighboring Eldorado Hotel & Casino and
the Circus Circus Hotel and Casino, each of which are owned by
affiliates of the Debtors. Together, the three properties
comprise the heart of the Reno market's prime gaming area and room
base.
Silver Legacy Capital is a wholly owned subsidiary of the Joint
Venture and was created and exists for the sole purpose of serving
as a co-issuer of the mortgage notes due 2012. SLCC has no
operations, assets or revenues.
Eldorado Hotel & Casino and Circus Circus Hotel and Casino are not
debtors in the Chapter 11 cases.
The Company did not make the required principal payment of its
10.125% mortgage notes on the maturity date of March 1, 2012. The
company also elected not to make the scheduled interest payment.
As a result, an aggregate of $142.8 million principal amount of
Notes were outstanding and accrued interest of $7.23 million on
the Notes, as of March 1, 2012, is due and payable.
The Debtors have entered into a Restructuring Support Agreement
with Capital Research and Management Company, a holder of a
substantial portion of the mortgage notes. A copy of the RSA
dated March 15, 2012, is available for free at http://is.gd/diDPh3
The RSA contemplates a proposed plan will be filed no later than
June 1, 2012. The plan will contain creditor treatments that
have already been negotiated with and agreed to by creditor
constituents. The Debtors will seek approval of the explanatory
disclosure statement within 45 days after the Petition Date and
obtain confirmation of the Plan 60 days later.
Judge Bruce T. Beesley presides over the case. Paul S. Aronzon,
Esq., and Thomas P. Kreller, Esq., at Milbank, Tweed, Hadley &
McCloy LLP; and Sallie B. Armstrong, Esq., at Downey Brand LLP,
serve as the Debtors' counsel. The Debtors' financial advisor is
FTI Consulting Inc. The claims agent is Kurtzman Carson
Consultants LLC.
The Bank of New York Mellon Trust Company, N.A., the trustee for
the Debtors' 10-1/8% Mortgage Notes due 2012, is represented by
Craig A. Barbarosh, Esq., and Karen B. Dine, Esq., at Pillsbury
Winthrop Shaw Pittman LLP.
Circus and Eldorado Joint Venture disclosed $264,649,800 in assets
and $158,753,490 in liabilities as of the Chapter 11 filing.
The petitions were signed by Stephanie D. Lepori, chief financial
officer.
The Plan dated June 1, 2012, pays much of its debt in cash and the
balance with new secured liens.
August B. Landis, Acting U.S. Trustee for Region 17, appointed
three creditors to serve in the Official Committee of Unsecured
Creditors in the Debtors' Chapter 11 cases. Stutman, Treister &
Glatt Professional Corporation represents the Committee.
CYPRESS BEND: Case Summary & Largest Unsecured Creditor
-------------------------------------------------------
Debtor: Cypress Bend, LLC
P.O. Box 727
Allenhurst, GA 31301
Bankruptcy Case No.: 12-41720
Chapter 11 Petition Date: August 31, 2012
Court: United States Bankruptcy Court
Southern District of Georgia (Savannah)
Judge: Lamar W. Davis Jr.
Debtor's Counsel: James L. Drake, Jr., Esq.
JAMES L. DRAKE, JR., P.C.
P.O. Box 9945
Savannah, GA 31412
Tel: (912) 790-1533
E-mail: jdrake7@bellsouth.net
Scheduled Assets: $4,212,250
Scheduled Liabilities: $3,666,067
In its list of 20 largest unsecured creditors, the Company placed
only one entry:
Entity Nature of Claim Claim Amount
------ --------------- ------------
Holland, Henry & $6,500
Bromley, LLP
2 East Bryan Street,
14th Flr.
Savannah, GA 31401
The petition was signed by Dennis A. Waters, Jr., managing member.
DEE ALLEN: James C. Bradshaw Withdraws as Bankruptcy Counsel
------------------------------------------------------------
The Hon. Joel T. Marker of the U.S. Bankruptcy Court for the
District of Utah authorized James C. Bradshaw to withdraw as
counsel for debtor Dee Allen Randall.
Mr. Bradshaw has a limited appearance to litigate and protect
issues relative to Debtor Dee Randall's privileges and other
constitutional rights. On June 26, 2012, the Debtors previous
counsel, Andres Dias, filed a motion to withdraw as attorney of
record.
According to Mr. Randall, he is without funds or other assets and
is unable to retain counsel to further litigate the issues of
privilege which have been implicated in the proceeding.
The motion was in part necessitated as a result of the actions of
the appointed trustee who has been attempting to recover assets
and has made clear his intention to file suit for recovery against
any entity that has received funds from Mr. Randall.
As reported on the Troubled Company Reporter on July 25, 2012,
1 On 1 Legal Services, P.L.L.C., previously obtained permission
from the Court to withdraw as counsel to Mr. Randall. The Debtor
retained the firm to represent him during his bankruptcy case. In
September 2011, however, a trustee was appointed in the Bankruptcy
Case thereby rendering services by 1 On 1 unnecessary.
About Dee Allan Randall
Dee Allen Randall in Kaysville, Utah, filed for Chapter 11
bankruptcy (Bankr. D. Utah Case No. 10-37546) on Dec. 20, 2010, to
forestall creditors while he reorganized his finances. His
companies include Horizon Mortgage & Investment, Horizon Financial
& Insurance Group and Horizon Auto Funding. Judge Joel T. Marker
presides over the bankruptcy case. In his petition, Mr. Randall
estimated $10 million to $50 million in assets and $1 million to
$10 million in debts.
Mr. Randall claims he was conducting a "legal Ponzi scheme," but
authorities are investigating him for possible violations of the
law in an operation that took in $65 million from 700 or so
investors.
Gil A. Miller was appointed as Chapter 11 trustee for Mr.
Randall's bankruptcy estate.
On Oct. 12, 2011, Mr. Miller placed Mr. Randall's corporate
entities -- Horizon Auto Funding, LLC, Independent Commercial
Lending LLC, Horizon Financial Center I LLC, Horizon Mortgage and
Investment Inc. and Horizon Financial & Insurance Group Inc. -- in
bankruptcy by filing separate Chapter 11 petitions (Bankr. D. Utah
Case Nos. 11-34826, 11-34830, 11-34831, 11-34833 and 11-34834).
Judge Joel T. Marker presides over the 2010 and 2011 cases.
Michael R. Johnson, Esq., Brent D. Wride, Esq., and David H.
Leigh, Esq., at Ray Quinney & Nebeker P.C., serve as counsel to
the Chapter 11 Trustee. Mr. Miller requested for the joint
administration of Mr. Randall's and the corporate Debtors' cases
for procedural purposes. The trustee hired Fabian & Clendenin as
special counsel.
DELTA PETROLEUM: Asks Clarification on Plan Order for Fees
----------------------------------------------------------
BankruptcyData.com reports that Delta Petroleum Corp. filed with
the U.S. Bankruptcy Court a motion for an order clarifying that
paragraph 43 of the confirmation order for its Third Amended
Chapter 11 Plan permits estate professionals to seek compensation
for services rendered and reimbursement of expenses incurred
through and including the effective date. The Court confirmed the
Plan on Aug. 16, 2012. The Court has scheduled a Sept. 18, 2012
hearing on the matter.
The TCR reported on Aug. 20, 2012, Delta Petroleum convinced the
bankruptcy judge to sign a confirmation order approving its
reorganization plan.
Bill Rochelle, the bankruptcy columnist for Bloomberg News,
reported that the plan will create a joint venture with Laramie
Energy II LLC, which will be two-thirds owned by Laramie and one-
third by reorganized Delta. Laramie won an auction to be the
plan's sponsor. Delta's lawyer told the judge there's a
possibility that another buyer may step forward with a better
offer. Delta, the lawyer said, has the right to end the Laramie
agreement as long as the plan hasn't been consummated.
Details on the Laramie arrangement are still being worked out, the
lawyer said, according to the report.
According to the Bloomberg report, holders of $267.7 million in
unsecured note claims were told in disclosure materials that they
may expect to recover between 6% and 11.7% from receiving stock in
reorganized Delta, which will own one-third of the joint venture.
Delta's unsecured creditors, with claims of about $3 million, will
have the same percentage recovery from receipt of stock.
The Bloomberg report added that in addition to stock in the joint
venture, Delta will receive $75 million cash to be used to pay off
about $50 million owing on a loan to finance the Chapter 11 case.
The remainder of the cash will be applied toward expenses of the
Chapter 11 effort. Delta is contributing all except about
$8 million of its property to the joint venture. Laramie is
contributing selected assets plus $75 million cash. The
reorganization structure preserves some $885 million in net
operating tax-loss carry forwards for utilization to increase
creditors' recoveries.
The Bloomberg reported relates that the joint venture, to be
called Piceance Energy LLC, will be financed in part with a $400
million revolving credit. Based in Denver, Laramie develops what
it calls "unconventional gas resources" in the Rocky Mountains.
About Delta Petroleum
Delta Petroleum Corporation (NASDAQ: DPTR) is an independent oil
and gas company engaged primarily in the exploration for, and the
acquisition, development, production, and sale of, natural gas and
crude oil. Natural gas comprises over 90% of Delta's production
services. The core area of its operations is the Rocky Mountain
Region of the United States, where the majority of the proved
reserves, production and long-term growth prospects are located.
Delta and seven of its subsidiaries sought Chapter 11 bankruptcy
protection (Bankr. D. Del. Case Nos. 11-14006 to 11-14013,
inclusive) on Dec. 16, 2011, roughly six weeks before the Jan. 31,
2012 scheduled maturity of its $38.5 million secured credit
facility with Macquarie Bank Limited and after several months of
unsuccessful attempts to sell the business. Delta disclosed
$375,498,248 in assets and $310,679,157 in liabilities, which also
include $152,187,500 in outstanding obligations on account of the
7% senior unsecured notes issued in March 2005 with US Bank
National Association indenture trustee; and $115,527,083 in
outstanding obligations on account of 3-3/4% Senior Convertible
Notes due 2037 issued in April 2007. In its amended schedules,
the Delta Petroleum disclosed $373,836,358 in assets and
$312,864,788 in liabilities.
W. Peter Beardsley, Esq., Christopher Gartman, Esq., Kathryn A.
Coleman, Esq., and Ashley J. Laurie, Esq., at Hughes Hubbard &
Reed LLP, in New York, N.Y., represent the Debtors as counsel.
Derek C. Abbott, Esq., Ann C. Cordo, Esq., and Chad A. Fights,
Esq., at Morris, Nichols, Arsht & Tunnel LLP, in Wilmington, Del.,
represent the Debtors as co-counsel. Conway Mackenzie is the
Debtors' restructuring advisor. Evercore Group L.L.C. is the
financial advisor and investment banker. The Debtors selected
Epiq Bankruptcy Solutions, LLC as claims and noticing agent. The
petition was signed by Carl E. Lakey, chief executive officer and
president.
Laramie Energy II LLC has been approved by the Court to serve as
the sponsor for Delta's reorganization plan.
Delta Petroleum has won approval for its disclosure statement
explaining the Chapter 11 reorganization plan.
DESERT OASIS: Says Estate Fully Administered, Wants Case Closed
---------------------------------------------------------------
Desert Oasis Apartments, LLC, asks the U.S. Bankruptcy Court for
the District of Nevada to enter a final decree closing its
Chapter 11 case.
According to the Debtor, the Court entered on Dec. 30, 2011, an
order confirming the Debtor's Amended Plan of Reorganization as
amended. On Jan. 14, 2012, the Debtor's Plan became effective.
The Debtor also notes that the estate has been fully administered
because most of the factors have been satisfied.
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.
DEWEY & LEBOEUF: Citibank Accused of Hiding Firm's Troubles
-----------------------------------------------------------
Peter Lattman at The New York Times' DealBook reports that a
former Dewey & LeBoeuf former partner, Steven P. Otillar, says
Citibank conspired with Dewey's management to hide the law firm's
true financial condition in the months before its collapse. Mr.
Otillar made the claim in response to a lawsuit brought against
him by Citibank seeking repayment of a $210,000 loan. The bank
lent Mr. Otillar the money to pay for his capital contribution to
Dewey when he joined the partnership in August 2011. (New partners
typically must make a financial contribution to a law firm when
they join.)
The report notes the filing said that Citibank had extended Mr.
Otillar the loan as part of a fraudulent scheme intended to
benefit Citibank and Dewey's management. By recruiting him and
other partners to join the financially troubled firm in the months
leading up to its demise -- and collecting millions of dollars
from them -- Dewey's partners enriched themselves and kept the
firm afloat.
The report relays that Mr. Otillar blames Citibank for his ill-
fated career move, saying the bank had a legal obligation to
disclose Dewey's financial state. He said that he never would
have joined Dewey and taken out a loan from the bank if he had an
accurate picture of the firm's condition.
The report discloses that Mr. Otillar's claim echoes a lawsuit
filed this year by Henry Bunsow, another former partner, that
accused the firm's leadership of running a Ponzi scheme that had
used money contributed from the newly hired to pay existing
partners and finance the imperiled firm. Like Mr. Otillar, Mr.
Bunsow joined Dewey just months before it filed for bankruptcy.
About Dewey & LeBoeuf
New York-based law firm Dewey & LeBoeuf LLP sought Chapter 11
bankruptcy (Bankr. S.D.N.Y. Case No. 12-12321) to complete the
wind-down of its operations. The firm had struggled with high
debt and partner defections. Dewey disclosed debt of US$245
million and assets of US$193 million in its chapter 11 filing late
evening on May 29, 2012.
Dewey & LeBoeuf was formed by the 2007 merger of Dewey Ballantine
LLP and LeBoeuf, Lamb, Greene & MacRae LLP. At its peak, Dewey
employed about 2,000 people with 1,300 lawyers in 25 offices
across the globe. When it filed for bankruptcy, only 150
employees were left to complete the wind-down of the business.
Dewey's offices in Hong Kong and Beijing are being wound down.
The partners of the separate partnership in England are in process
of winding down the business in London and Paris, and
administration proceedings in England were commenced May 28. All
lawyers in the Madrid and Brussels offices have departed. Nearly
all of the lawyers and staff of the Frankfurt office have
departed, and the remaining personnel are preparing for the
closure. The firm's office in Sao Paulo, Brazil, is being
prepared for closure and the liquidation of the firm's local
affiliate. The partners of the firm in the Johannesburg office,
South Africa, are planning to wind down the practice.
The firm's ownership interest in its practice in Warsaw, Poland,
was sold to the firm of Greenberg Traurig PA on May 11 for
US$6 million. The Pension benefit Guaranty Corp. took
US$2 million of the proceeds as part of a settlement. The Debtor
disclosed $368,117,240 in assets and $348,817,408 in liabilities
as of the Chapter 11 filing.
Judge Martin Glenn oversees the case. Albert Togut, Esq., at
Togut, Segal & Segal LLP, represents the Debtor. Epiq Bankruptcy
Solutions LLC serves as claims and notice agent. The petition was
signed by Jonathan A. Mitchell, chief restructuring officer.
JPMorgan Chase Bank, N.A., as Revolver Agent on behalf of the
lenders under the Revolver Agreement, hired Kramer Levin Naftalis
& Frankel LLP. JPMorgan, as collateral agent for the Revolver
Lenders and the Noteholders, hired FTI Consulting and Gulf
Atlantic Capital, as financial advisors. The Noteholders hired
Bingham McCutchen LLP as counsel.
The U.S. Trustee formed two committees -- one to represent
unsecured creditors and the second to represent former Dewey
partners. The Former Partners hired lawyers at Kasowitz, Benson,
Torres & Friedman LLP, as counsel. The Official Committee of
Unsecured Creditors tapped Deloitte Financial Advisory Services
LLP as its financial advisor.
DEWEY & LEBOEUF: Seeks Extension of Exclusivity Period
------------------------------------------------------
Lisa Uhlman at Bankruptcy Law360 reports that Dewey & LeBoeuf LLP
on Wednesday asked a New York bankruptcy judge to grant it four
more months to file a Chapter 11 plan, citing its work on its $70
million partner contribution plan and a retiree group's recent bid
for a trustee.
Bankruptcy Law360 relates that the winding-down law firm is asking
for extensions through Dec. 31 of its exclusive right to file a
plan and through March 1 of its right to solicit acceptances of
its plan. A hearing on the motion is set for Sept. 20.
About Dewey & LeBoeuf
New York-based law firm Dewey & LeBoeuf LLP sought Chapter 11
bankruptcy (Bankr. S.D.N.Y. Case No. 12-12321) to complete the
wind-down of its operations. The firm had struggled with high
debt and partner defections. Dewey disclosed debt of US$245
million and assets of US$193 million in its chapter 11 filing late
evening on May 29, 2012.
Dewey & LeBoeuf was formed by the 2007 merger of Dewey Ballantine
LLP and LeBoeuf, Lamb, Greene & MacRae LLP. At its peak, Dewey
employed about 2,000 people with 1,300 lawyers in 25 offices
across the globe. When it filed for bankruptcy, only 150
employees were left to complete the wind-down of the business.
Dewey's offices in Hong Kong and Beijing are being wound down.
The partners of the separate partnership in England are in process
of winding down the business in London and Paris, and
administration proceedings in England were commenced May 28. All
lawyers in the Madrid and Brussels offices have departed. Nearly
all of the lawyers and staff of the Frankfurt office have
departed, and the remaining personnel are preparing for the
closure. The firm's office in Sao Paulo, Brazil, is being
prepared for closure and the liquidation of the firm's local
affiliate. The partners of the firm in the Johannesburg office,
South Africa, are planning to wind down the practice.
The firm's ownership interest in its practice in Warsaw, Poland,
was sold to the firm of Greenberg Traurig PA on May 11 for
US$6 million. The Pension benefit Guaranty Corp. took
US$2 million of the proceeds as part of a settlement. The Debtor
disclosed $368,117,240 in assets and $348,817,408 in liabilities
as of the Chapter 11 filing.
Judge Martin Glenn oversees the case. Albert Togut, Esq., at
Togut, Segal & Segal LLP, represents the Debtor. Epiq Bankruptcy
Solutions LLC serves as claims and notice agent. The petition was
signed by Jonathan A. Mitchell, chief restructuring officer.
JPMorgan Chase Bank, N.A., as Revolver Agent on behalf of the
lenders under the Revolver Agreement, hired Kramer Levin Naftalis
& Frankel LLP. JPMorgan, as collateral agent for the Revolver
Lenders and the Noteholders, hired FTI Consulting and Gulf
Atlantic Capital, as financial advisors. The Noteholders hired
Bingham McCutchen LLP as counsel.
The U.S. Trustee formed two committees -- one to represent
unsecured creditors and the second to represent former Dewey
partners. The Former Partners hired lawyers at Kasowitz, Benson,
Torres & Friedman LLP, as counsel. The Official Committee of
Unsecured Creditors tapped Deloitte Financial Advisory Services
LLP as its financial advisor.
DORSEY BUILDERS: Case Summary & 13 Largest Unsecured Creditors
--------------------------------------------------------------
Debtor: Dorsey Builders, Inc.
13090 Old Frederick Road
Sykesville, MD 21784
Bankruptcy Case No.: 12-25952
Chapter 11 Petition Date: August 30, 2012
Court: U.S. Bankruptcy Court
District of Maryland (Baltimore)
Judge: Nancy V. Alquist
Debtor's Counsel: James A. Vidmar, Jr., Esq.
YUMKAS, VIDMAR & SWEENEY, LLC
2530 Riva Road, Suite 400
Annapolis, MD 21401
Tel: (443) 569-5977
Fax: (410) 571-2798
E-mail: jvidmar@yvslaw.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
A copy of the Company's list of its 13 largest unsecured creditors
filed with the petition is available for free at:
http://bankrupt.com/misc/mdb12-25952.pdf
The petition was signed by Phillip H. Dorsey, president.
Affiliate that filed separate Chapter 11 petition:
Entity Case No. Petition Date
------ -------- -------------
Phillip Hamilton Dorsey and
Claudia Annette Dorsey 12-22646 07/06/12
DYNEGY INC: Chevron Drops Objection to Chapter 11 Plan
------------------------------------------------------
Lisa Uhlman at Bankruptcy Law360 reports that Chevron USA Inc.
withdrew its objection to Dynegy Inc. and Dynegy Holdings LLC's
Chapter 11 plan Friday after the parties agreed to add language
saying the plan doesn't affect a settlement they are finalizing in
a $4.7 million contract dispute in Texas.
Bankruptcy Law360 says Chevron is a co-defendant with DH and
certain affiliates in the Texas breach of contract action, and it
has indemnity claims against the debtor in connection with that
suit.
About Dynegy
Through its subsidiaries, Houston, Texas-based Dynegy Inc.
(NYSE: DYN) -- http://www.dynegy.com/-- produces and sells
electric energy, capacity and ancillary services in key U.S.
markets. The power generation portfolio consists of approximately
12,200 megawatts of baseload, intermediate and peaking power
plants fueled by a mix of natural gas, coal and fuel oil.
Dynegy Holdings LLC and four other affiliates of Dynegy Inc.
sought Chapter 11 bankruptcy protection (Bankr. S.D.N.Y. Lead Case
No. 11-38111) Nov. 7, 2011, to implement an agreement with a
group of investors holding more than $1.4 billion of senior notes
issued by Dynegy's direct wholly-owned subsidiary, Dynegy
Holdings, regarding a framework for the consensual restructuring
of more than $4.0 billion of obligations owed by DH. If this
restructuring support agreement is successfully implemented, it
will significantly reduce the amount of debt on the Company's
consolidated balance sheet. Dynegy Holdings disclosed assets of
$13.77 billion and debt of $6.18 billion.
Dynegy Inc. on July 6, 2012, filed a voluntary petition to
reorganize under Chapter 11 (Bankr. S.D.N.Y. Case No. 12-36728) to
effectuate a merger with Dynegy Holdings, pursuant to Holdings'
Chapter 11 plan.
A settlement, which has already been approved by the bankruptcy
court, provides for Dynegy Inc. and Holdings to merge and for the
administrative claim granted to Dynegy Inc. in the Holdings
Chapter 11 case to be transferred out of Dynegy Inc. for the
benefit of its shareholders.
Dynegy Holdings and its affiliated debtor-entities are represented
in the Chapter 11 proceedings by Sidley Austin LLP as their
reorganization counsel. Dynegy and its other subsidiaries are
represented by White & Case LLP, who is also special counsel to
the Debtor Entities with respect to the Roseton and Danskammer
lease rejection issues. The financial advisor is FTI Consulting.
The Official Committee of Unsecured Creditors in Holdings' cases
has tapped Akin Gump Strauss Hauer & Feld LLP as counsel.
Dynegy Inc. is represented by White & Case LLP and advised by
Lazard Freres & Co. LLC.
EASTERN LIVESTOCK: Trustee Stays; Plan Outline Hearing on Friday
----------------------------------------------------------------
Bankruptcy Judge Basil H. Lorch, III, denied the requests of The
First Bank and Trust Company and Bluegrass Stockyards to remove
James A. Knauer as Chapter 11 trustee for Eastern Livestock Co.,
LLC. Mr. Knauer is a partner in the Indianapolis law firm of
Kroger, Gardis & Regas LLP.
In a companion order, the Court denied First Bank's renewed
objections to the employment of Faegre Baker Daniels LLP, fka
Baker & Daniels LLP, as the Chapter 11 Trustee's counsel. The
Court said the Renewed Objections are improper as they attempt to
resurrect an objection that was finally determined by the February
2011 order approving the firm's employment.
First Bank did not make any loan to or otherwise do business with
ELC. First Bank has filed two proofs of claim in the Chapter 11
Case asserting two secured claims. Mr. Knauer has taken the
position that First Bank is not a secured creditor of ELC, and, in
fact, the Trustee contends that First Bank is not a creditor of
ELC at all.
Bluegrass Stockyards and a variety of related entities are
defendants in a pending adversary proceeding commenced by Mr.
Knauer seeking to avoid and recover from the Bluegrass Entities
alleged fraudulent preferential transfers under 11 U.S.C. Sections
547, 548 and 550. The Trustee contends that proofs of claim filed
by the Bluegrass Entities that assert unsecured claims in the
Chapter 11 Case cannot be allowed because of the effect of Sec.
502(d). The Bluegrass Entities contest the Trustee's claims.
The Chapter 11 Trustee has filed a proposed chapter 11 plan and
disclosure statement. The disclosure statement is scheduled to be
heard by the Court on Sept. 7, 2012. In his proposed disclosure
statement, the Trustee projects that under the proposed plan
unsecured creditors who "opt in" and release their claims against
Fifth Third could receive a distribution of $0.40 on the dollar or
more. The Court believes that unsecured creditors in the case may
have a keen interest in receiving a substantial payment on account
of their claims in as prompt a fashion as is feasible.
The Court believes that granting the Motions to Remove the Trustee
would delay by many months the opportunity for creditors to
consider and vote on a Chapter 11 plan of the kind proposed by the
Trustee. The delay involved in removal of the Trustee and
securing his replacement would be severely prejudicial to the
interests of creditors in the Chapter 11 Case.
A copy of the Court's Aug. 31, 2012 Order denying the bid to
remove the Trustee is available at http://is.gd/2V44H1from
Leagle.com.
A copy of the Court's Aug. 31, 2012 Order denying the bid to
remove the Trustee's counsel is available at http://is.gd/NsQvNp
from Leagle.com.
About Eastern Livestock
Eastern Livestock Co., LLC, was one of the largest cattle
brokerage companies in the United States, with operations and
assets located in at least 11 states. ELC was headquartered in
New Albany, Indiana, with branch locations across several states.
It shut operations in November 2010.
On Dec. 6, 2010, creditors David L. Rings, Southeast Livestock
Exchange, LLC, and Moseley Cattle Auction, LLC, filed an
involuntary Chapter 11 petition (Bankr. S.D. Ind. Case No.
10-93904) for the Company. The creditors asserted $1.45 million
in claims for "cattle sold," and are represented by Greenebaum
Doll & McDonald PLLC.
Judge Basil H. Lorch III entered an Order for Relief on Dec. 28,
2010. At the behest of the creditors, the Court appointed James
A. Knauer, Esq., as Chapter 11 trustee to operate Eastern
Livestock's business. The Chapter 11 trustee is represented by
James M. Carr, Esq., at Baker & Daniels LLP, nka Faegre Baker
Daniels LLP, as counsel and Katz, Sapper & Miller, LLP, as
accountants. BMC Group Inc. is the claims and notice agent.
The Debtor has disclosed $81,237,865 in assets and $40,154,698 in
papers filed in Court. The Debtor, in its amended schedules,
disclosed $59,366,230 in assets and $40,154,697 in liabilities as
of the Chapter 11 filing.
An affiliate, East-West Trucking Co., LLC, filed a Chapter 7
petition (Bankr. S.D. Ind. Case No. 10-93799) on Nov. 23, 2010.
The petition was signed by Thomas P. Gibson, as manager. Michael
J. Walro, appointed as Chapter 7 Trustee for East-West Trucking,
has tapped James T. Young, Esq., at Rubin & Levin, P.C., in
Indianapolis as counsel. Mr. Gibson, together with his spouse,
Patsy M. Gibson, pursued a personal bankruptcy case (Bankr. S.D.
Ind. Case No. 10-93867) in 2010. Kathryn L. Pry, the court-
appointed trustee for the Gibson's Chapter 7 case, tapped Dale &
Eke, P.C., as counsel.
EVANS OIL: Court Expands Duties of Auctioneer Soneet Kapila
-----------------------------------------------------------
The U.S. Bankruptcy Court for the Middle District of Florida
approved the expansion of duties of Soneet Kapila as facilitator,
indexer of equipment and auctioneer for Evans Oil Company LLC, et
al.
Mr. Kapila is serving as facilitator pursuant to a May 21 order
entered by the bankruptcy court. The ore tenus motion to expand
the duties of Soneet Kapila, made by Fifth Third Bank, will be
effective as of Aug. 9, 2012;
The duties of Mr. Kapila will be expanded. The Court has allowed
himt, to among other things:
a. maintain a presence at Evans Oil Company during its regular
business hours for the purpose of facilitating due diligence
requested by any bidder and the sale transaction, including
without limitation, Florida Petroleum Company LLC; and
b. at the request of Florida Petroleum Company LLC, Mr. Kapila,
and his staff, will review, prepare a detailed index of, and
to the extent Mr. Kapila deems the premises of Evans Oil
Company LLC and related Debtors. Representatives of Debtors
and of Florida Petroleum Company LLC may observe such
review.
As reported in the Troubled Company Reporter on June 14, 2012,
Judge Barry S. Schermer appointed Soneet Kapila as facilitator
effective on May 10, 2012, Evans Oil Company LLC's case. As
facilitator, Mr. Kapila will freely expedite any requests for
data, records, documents, information, and interviews to
prospective buyers of the business of the Debtor entities
consistent with the protocols. All due diligence regarding any
plan of reorganization or any sale of the Debtors' assets will be
facilitated by Mr. Kapila until the earlier of (1) consummation of
a sale of all or substantially all of the assets, or (2)
confirmation of a plan of reorganization, or (3) further order of
the Court. In the event that he experiences any difficulty with
the exchange of information, he will immediately contact the
Court, which will issue any additional orders, as may be
necessary.
About Evans Oil
Naples, Florida-based Evans Oil Company LLC, aka Evans Oil Co LLC,
distributes bulk oil, gas, diesel and lubricant products. Evans
Oil, together with affiliates, filed for Chapter 11 bankruptcy
protection (Bankr. M.D. Fla. Lead Case No. 11-01515) on Jan. 30,
2011.
Attorneys at Hahn Loeser & Parks LLP serve as bankruptcy counsel
to the Debtors. Garden City Group Inc. is the claims and notice
agent. The Parkland Group Inc. is the restructuring advisor.
Evans Oil estimated assets and debts at $10 million to $50 million
as of the Chapter 11 filing.
Fifth Third Bank failed in its bid for appointment of a Chapter 11
trustee to replace management.
Soneet Kapila was appointed by the bankruptcy judge as facilitator
effective on May 10, 2012 for Evans Oil. All due diligence
regarding any plan of reorganization or any sale of the Debtors'
assets will be facilitated by Mr. Kapila until the earlier of
consummation of a sale of all or substantially all of the assets,
or (2) confirmation of a plan of reorganization.
EVANS OIL: Taps SS&G Parkland for Restructuring Services
--------------------------------------------------------
Evans Oil Company LLC, et al., ask, in an amended application,
the U.S. Bankruptcy Court for the Middle District of Florida for
permission to employ SS&G Parkland Consulting, LLC, as successor
to the Parkland Group, Inc., to provide restructuring services
nunc pro tunc as of Jan. 30, 2011.
The Debtors also ask that the Court:
i) amend the employment and retention of The Parkland Group to
provide restructuring services to the Debtors, to
acknowledge the continued employment and retention of the
professionals by Parkland's successor, SS&G Parkland
Consulting, LLC; and
ii) confirm that effective July 1, 2012, all restructuring work
performed for the Debtors was performed by SSGPC and not
Parkland.
According to the Debtors, the professionals from SSGPC will be
providing exactly the same services authorized pursuant to the
original application and the original retention order. SSGPC will
charge the exact same rates for the professionals from SSGPC to
the estate as they charged when the professionals were employed by
Parkland. The only change occurring is the entity providing the
services to the Debtors.
More specifically, as with Parkland, SSGPC will provide these
restructuring services to Debtors:
a) manage, in consultation with the board the restructuring
efforts of Debtors;
b) assist management of cash and accounts payable;
c) assist the Debtors with the collection of accounts
receivable; and
d) assist the Debtors in managing its assets, including both
personal property and real property assets.
The hourly rates of SSGPC's personnel are:
Principals $325 - $395
Directors $275 - $325
Consultants $250 - $275
In connection with the prepetition retention by Debtors, Parkland
received a $25,000 security retainer on Jan. 24, 2011. On
Jan. 27, 2011, Parkland received a $75,000 further retainer.
To the best of the Debtors' knowledge, SSGPC does not hold or
represent any interest adverse to Debtors and their estates in the
matters upon which it is engaged.
About Evans Oil
Naples, Florida-based Evans Oil Company LLC, aka Evans Oil Co LLC,
distributes bulk oil, gas, diesel and lubricant products. Evans
Oil, together with affiliates, filed for Chapter 11 bankruptcy
protection (Bankr. M.D. Fla. Lead Case No. 11-01515) on Jan. 30,
2011.
Attorneys at Hahn Loeser & Parks LLP serve as bankruptcy counsel
to the Debtors. Garden City Group Inc. is the claims and notice
agent. The Parkland Group Inc. is the restructuring advisor.
Evans Oil estimated assets and debts at $10 million to $50 million
as of the Chapter 11 filing.
Fifth Third Bank failed in its bid for appointment of a Chapter 11
trustee to replace management.
Soneet Kapila was appointed by the bankruptcy judge as facilitator
effective on May 10, 2012 for Evans Oil. All due diligence
regarding any plan of reorganization or any sale of the Debtors'
assets will be facilitated by Mr. Kapila until the earlier of
consummation of a sale of all or substantially all of the assets,
or (2) confirmation of a plan of reorganization.
FIELDSTONE MORTGAGE: Plan Trust Settles With IRS
------------------------------------------------
Bankruptcy Judge James F. Schneider inked his stamp of approval on
a stipulation and order dismissing, with prejudice, the lawsuit,
STEVEN D. SASS, LLC, as Trustee of the FMC PLAN TRUST, Plaintiff,
v. UNITED STATES OF AMERICA, Defendant, Adv. Proc. No. 12-00321
(Bankr. D. Md.).
The Fieldstone Mortgage Company Plan Trust was created pursuant to
Fieldstone Mortgage Company's Revised Plan of Reorganization to,
inter alia, object to certain claims and make certain
distributions under the Plan. Steven D. Sass, LLC and Martin
Fletcher, Esq., were appointed as trustees of the Trust.
The Trust has made a number of partial distributions to the
Debtor's former Employees on account of their Allowed Priority
Wage Claims, which claims the Trust asserts are treated as fourth
level priority claims pursuant to section 507(a)(4) of the
Bankruptcy Code. The Trust asserts that the Allowed Priority Wage
Claims will not be paid in full because the Trust does not have
sufficient funds to pay such claims in full. The Trust asserts
that the Priority Distributions were made to the Employees
exclusive of applicable wage taxes and withholdings, as required
by the Plan. The Trust asserts that the Employees' portion of
taxes and withholdings, which were withheld from the Priority
Distributions to the Employees, were paid to the various taxing
authorities pursuant to the terms of the Plan. The
Debtor's portion of the applicable wage taxes related to the
Priority Distributions, such as Medicare tax and unemployment
insurance, typically due from an employer on its payroll, were not
paid to the various taxing authorities. The Trust asserts that
the Employer Taxes were not paid to the various taxing
authorities, including the Internal Revenue Service, because such
taxes are treated as eighth level priority claims under section
507(a)(8)(D) of the Bankruptcy Code, and cannot be paid unless the
Allowed Priority Wage Claims are paid in full.
On Jan. 4, 2012, the IRS filed a Notice of Federal Tax Lien
asserting a Tax Lien upon the Trust's assets in favor of the
United States in the amount of $53,769.35 for certain unpaid
Employer Taxes allegedly owed by the Trust to the IRS with respect
to the Priority Distributions. The IRS advised the Trust that it
was investigating whether Steven D. Sass individually, Mr.
Fletcher, and Chad J. Toms, Esq., the attorney who represented the
Trust in relation to the Priority Distributions, may be held
personally liable for the Employer Taxes allegedly owed by the
Trust to the IRS.
On May 14, 2012, Steven D. Sass LLC, as trustee of the Trust,
initiated the adversary proceeding, seeking, inter alia (1) a
declaration that the Tax Lien placed against the Trust's assets by
the IRS is invalid; (2) a declaration that the filing of the Tax
Lien was a violation of the Injunction Against Interference with
the Plan; (3) a declaration that the filing of the Tax Lien was a
violation of the Plan Injunction; (4) a declaration that the
Plaintiff may distribute Trust assets pursuant to the Plan, free
and clear of the Tax Lien; (5) a declaration that the Trustees and
Trust's counsel are not personally liable to the Defendant or the
IRS for the Employer Taxes; (6) entry of an order removing and
retracting the Tax Lien and Notice of Federal Tax Lien; and (7)
entry of a permanent injunction preventing the IRS from asserting
a lien on any assets of the Trust for the Employer Taxes.
The Defendant has notified the Plaintiff that the IRS has released
the Tax Lien, withdrew the Notice of Federal Tax Lien, and ceased
collection efforts with respect to the Employer Taxes. The
parties agree the Tax Lien is invalid. The parties also agree
that the IRS will not assert any lien on the Trust's assets or
take any further action to collect the Employer Taxes from the
Trust; the Trust may make all distributions of Trust assets free
and clear of the Tax Lien in accordance with the terms of the
Plan; Messrs. Sass, Fletcher and Toms, and other professionals
retained by and working for the Trust are not personally
responsible for, and shall have no liability to the Defendant or
the IRS for, payment of the Employer Taxes. The parties agree to
dismiss the Action.
A copy of the Aug. 29, 2012 Stipulation and Order is available at
http://is.gd/DfEEeSfrom Leagle.com.
Steven D. Sass, LLC, as Trustee, of the FMC Plan Trust, is
represented by J. Daniel Vorsteg, Esq. -- jdvorsteg@wtplaw.com --
at WHITEFORD, TAYLOR & PRESTON LLP.
Attorney for the United States of America is Norah E. Bringer --
norah.e.bringer@usdoj.gov -- Trial Attorney, U.S. DEPARTMENT OF
JUSTICE Tax Division in Washington DC.
About Fieldstone Mortgage
Headquartered in Columbia, Maryland, Fieldstone Mortgage Co. --
http://www.fieldstonemortgage.com/-- was a direct lender that
offers mortgage loans for multiple credit situations in the United
States. In 2006, Fieldstone originated $5.5 billion of
residential mortgage loans. In Sept. 2007, Fieldstone was the
target of a lawsuit by Morgan Stanley over 72 mortgages totalling
$26.5 million that had no, or late, payments.
Fieldstone sought Chapter 11 protection (Bankr. D. Md. Case No.
07-21814) on Nov. 23, 2007, citing loan payment lapses and
credit market woes. Joel I. Sher, Esq., at Shapiro, Sher, Guinot
& Sandler represents the Debtor. The U.S. Trustee appointed an
Official Committee of Unsecured Creditors in this case, which
is represented by Christopher J. Giaimo, Esq., and Jeffrey Neil
Rothleder, Esq., at Arent Fox LLP. The Debtors disclosed total
assets of $14,465,348 and total debts of $121,342,790. The Hon.
James F. Schneider confirmed Fieldstone Mortgage Company's
Chapter 11 plan of reorganization in July 2008.
FIFTY BELOW: Case Summary & 20 Largest Unsecured Creditors
----------------------------------------------------------
Debtor: Fifty Below Sales & Marketing, Inc.
5 West First Street #302
Duluth, MN 55802
Bankruptcy Case No.: 12-50900
Chapter 11 Petition Date: August 29, 2012
Court: United States Bankruptcy Court
District of Minnesota (Duluth)
Judge: Gregory F. Kishel
Debtor's Counsel: Michael F. McGrath, Esq.
RAVICH MEYER KIRKMAN & MCGRATH NAUMAN
4545 IDS Center
80 South Eighth Street
Minneapolis, MN 55402
Tel: (612) 332-8511
E-mail: mfmcgrath@ravichmeyer.com
Estimated Assets: $0 to $50,000
Estimated Debts: $10,000,001 to $50,000,000
A copy of the Company's list of its 20 largest unsecured creditors
filed together with the petition is available for free at
http://bankrupt.com/misc/mnb12-50900.pdf
The petition was signed by David L. Hogge, chief executive
officer.
FOUR K: Voluntary Chapter 11 Case Summary
-----------------------------------------
Debtor: Four K Group, Inc.
1669 East 18th Street
Brooklyn, NY 11229
Bankruptcy Case No.: 12-46300
Chapter 11 Petition Date: August 29, 2012
Court: United States Bankruptcy Court
Eastern District of New York (Brooklyn)
Judge: Elizabeth S. Stong
Debtor's Counsel: David Carlebach, Esq.
40 Exchange Place
Suite 1306
New York, NY 10005
Tel: (212) 785-3041
Fax: (646) 355-1916
E-mail: david@carlebachlaw.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 Eduard Korsinsky, vice president.
GALP HIGHCROSS: Plan of Reorganization Declared Effective
---------------------------------------------------------
GALP Highcross Limited Partnership notified the U.S. Bankruptcy
Court for the Southern District of Texas that the Effective Date
of its Third Modified Chapter 11 Plan of Reorganization occurred
on July 27, 2012.
As reported in the Troubled Company Reporter on July 24, 2012,
GALP Highcross at the end of June obtained an order confirming its
Third Modified Plan.
Judge Jeff Bohm confirmed the Plan after the remaining outstanding
objection, filed by Ballinteer LLC, was resolved and withdrawn.
According to the Plan dated June 28, 2012, Ballinteer LLC, holder
of a claim secured by a first lien on property owned by the
Debtor, would have an allowed claim of $8.97 million. It will
receive post-confirmation fixed interest of 6.5%, with monthly
payments of $48,656 until June 30, 2014. Default interest rate is
11.5% per annum.
Holders of general unsecured claims will receive 20% of their
allowed claims in cash on the effective date. Unsecured creditors
each holding a claim of $1,000 or less or who opt to reduce the
claim to $1,000 will receive 70% of the claim in cash on the
effective date.
Holders of equity interests will retain their interest. Graoch
Associates #160 Limited Partnership holds 99% interest in the
Debtor.
A copy of the confirmed Plan is available at
http://bankrupt.com/misc/Galp_Highcross_3rd_Amended_Plan.pdf
About the GALP Entities
Houston, Texas-based GALP Waters Limited Partnership, aka
Gallery at Champions Apartments, filed for Chapter 11 bankruptcy
(Bankr. S.D. Tex. Case No. 11-36743) on Aug. 2, 2011. Affiliate
GALP Highcross Limited Partnership filed a separate petition (Case
No. 11-36741) on the same day. Matthew Hoffman, Esq., at the Law
Offices Of Matthew Hoffman, P.C., in Houston, represents the
Debtor in its restructuring effort.
In its schedules, GALP Waters Limited Partnership disclosed
$15,933,583 in assets and $15,193,950 in liabilities.
The petitions were signed by Gary M. Gray, president of Waters-1
GP, Inc., general partner of Waters GP, L.P., general partner.
GALP WATERS: Plan of Reorganization Declared Effective
------------------------------------------------------
GALP Waters Limited Partnership notified the U.S. Bankruptcy Court
for the Southern District of Texas that the Effective Date of its
Third Modified Plan of Reorganization occurred on July 27, 2012.
As reported in the Troubled Company Reporter on July 24, 2012,
GALP Waters at the end of June obtained an order confirming its
Third Modified Plan of Reorganization.
Judge Jeff Bohm confirmed the Plan after the remaining outstanding
objection, filed by Ballinteer LLC, was resolved and withdrawn.
According to the Plan dated June 28, 2012, Ballinteer LLC, holder
of a claim secured by a first lien on property owned by the
Debtor, would have an allowed claim of $12.51 million. It will
receive post-confirmation fixed interest of 6.5%, with monthly
payments of $67,771 until June 30, 2014. Default interest rate is
11.5% per annum.
Holders of general unsecured claims will receive 20% of their
allowed claims in cash on the effective date. Unsecured creditors
each holding a claim of $1,000 or less or who opt to reduce the
claim to $1,000 will receive 70% of the claim in cash on the
effective date.
Holders of equity interests will retain their interest. Graoch
Associates #160 Limited Partnership holds 99% interest in the
Debtor.
A copy of the confirmed Plan is available at:
http://bankrupt.com/misc/Galp_Waters_3rd_Amended_Plan.pdf
About the GALP Entities
Houston, Texas-based GALP Waters Limited Partnership, aka
Gallery at Champions Apartments, filed for Chapter 11 bankruptcy
(Bankr. S.D. Tex. Case No. 11-36743) on Aug. 2, 2011. Affiliate
GALP Highcross Limited Partnership filed a separate petition (Case
No. 11-36741) on the same day. Matthew Hoffman, Esq., at the Law
Offices Of Matthew Hoffman, P.C., in Houston, represents the
Debtor in its restructuring effort.
In its schedules, GALP Waters Limited Partnership disclosed
$15,933,583 in assets and $15,193,950 in liabilities.
The petitions were signed by Gary M. Gray, president of Waters-1
GP, Inc., general partner of Waters GP, L.P., general partner.
H&M OIL: Wants Until Oct. 27 to Propose Chapter 11 Plan
-------------------------------------------------------
H&M Oil and Gas, LLC and Anglo-American Petroleum Corporation ask
the U.S. Bankruptcy Court for the Northern District of Texas to
extend their exclusive period to propose a chapter 11 plan until
Oct 27, 2012.
The Debtors need more time to negotiate a plan of reorganization
and prepare adequate information. The Debtors relate that they
were involved in various contested matters, which hampered their
ability to formulate a plan. Subsequent to resolution of the
contested hearings, the Debtors entered into protracted
negotiations for a three-month budget that was finally signed in
July 2012.
About H&M Oil
H&M Oil & Gas, LLC, filed a bare-bones Chapter 11 petition
(Bankr. N.D. Tex. Case No. 12-32785) in its hometown Dallas on
April 30, 2012. Another entity, Anglo-American Petroleum Corp.
(Case No. 12-32786) simultaneously filed for Chapter 11. H&M Oil
disclosed $297,119,773 in assets and $77,463,479 in liabilities as
of the Chapter 11 filing.
H&M Oil & Gas is an oil and gas production and development
company. H&M, through its operating company, H&M Resources LLC,
is focused on developing its leases in the Permian basin and Texas
panhandle. Dallas, Texas-based Anglo-American Petroleum --
http://www.angloamericanpetroleum.com/-- is the holding
corporation for H&M Oil.
Judge Barbara J. Houser presides over the case. The Debtors are
represented by Keith William Harvey, Esq., at Anderson Tobin PLLC,
in Dallas. Lain Faulkner & Co., PC, serves as financial adviser.
Prospect Capital Corporation, the Debtors' lone secured creditor,
is represented in the case by Timothy A. Davidson II, Esq., and
Joseph P. Rovira, Esq., at Andrews Kurth LLP.
The U.S. Trustee has not appointed a creditors' committee.
HARPER BRUSH: Court OKs Equity Partners CRB as Investment Banker
----------------------------------------------------------------
Harper Brush Works, Inc., sought and obtained approval from the
U.S. Bankruptcy Court to employ Equity Partners CRB LLC as its
investment banker.
An objection was filed but later withdrawn, according to the case
docket.
The firm has agreed to, among other things:
(a) provide investment banking services and facilitate
raising capital through a sale of the company or fresh
equity investment;
(b) assist the Debtor in the negotiation, formulation,
confirmation, and implementation of a Chapter 11 Plan; and
(c) assist the Debtor with corporate financing matters and
take such other action and perform such other services as
the Debtor may require of the firm in connection with the
Chapter 11 case.
The firm attests that it is a "disinterested person" as the term
is defined in Section 101(14) of the Bankruptcy Code.
Equity Partners CRB has not received any compensation prior to the
Petition Date for prepetition financial advice, services or
expenses. In lieu of a retainer fee, the firm has agreed to a
success-based fee structure:
* In the case of an equity investment or sale, paid in cash at
settlement of any investment or sale of assets closed and
funded, or upon confirmation of a reorganization plan, for any
offers received, the fee for its services will be:
-- 8% of the first $2,000,000 of gross value;
-- 6% of gross value between $2,000,001 and $4,000,000;
-- 5% of gross value between $4,000,001 and $6,000,000;
-- 4% of gross value between $6,000,001 and $8,000,000;
-- 3% of gross value between $8,000,001 and $10,000,000;
-- 2% of any gross value in excess of $10,000,000.
* In the case of a restructuring, paid in cash upon approval of
the restructuring and/or plan of reorganization, the fee will
be the greater of $200,000 or an amount calculated under the
employment agreement; or
* In the case of refinancing, paid upon settlement, the fee will
be the greater of $200,000 or 3% of the Gross Value.
* In the case of a joint venture or merger, upon consummation,
the fee will be the greater of $200,000 or an amount
calculated under the Agreement.
* Equity Partners will be entitled to its fee even if a buyer
purchases the assets, or a claim directly from a secured
creditor. It will be entitled to receive its fee from any
purchase, refinance, equity investment, joint venture or
restructuring completed within 12 months by/with a prospect
identified during the term of the Agreement.
* If the services of Equity Partners eventually results in a
sale of the Debtor's assets pursuant to 11 U.S.C. Sec. 363,
its fees and expenses will be calculated.
* Equity Partners will receive an advance from the Debtor not to
exceed $20,000 for advertising, marketing, travel and any
other expenses; the monies to be used strictly for marketing
costs such as printing, mailing, telephone, and travel-related
expenses to meet investors and to provide due diligence
materials to prospects.
About Harper Brush Works
Fairfield, Iowa-based Harper Brush Works, Inc., filed a Chapter 11
petition (Bankr. S.D. Iowa) in Des Moines on May 29, 2012.
Family-owned Harper Brush -- http://www.harperbrush.com/--
provides more than 1,000 products, including pushbrooms, mops,
floor squeegees, automotive brushes, dust pans, and buckets. The
Company disclosed assets of $10.4 million against debt totaling
$10 million, including $6 million owing to secured creditors.
Judge Anita L. Shodeen presides over the case. Donald F. Neiman,
Esq., and Jeffrey D. Goetz, Esq., at Bradshaw, Fowler, Proctor &
Fairgrave, P.C., serve as bankruptcy counsel to the Debtor. Marc
B. Ross serves as the Debtor's Chief Restructuring Officer.
An official committee of unsecured creditors has been appointed in
the case. The panel is represented by Freeborn & Peters LLP as
general bankruptcy counsel. The Committee tapped Day Rettig
Peiffer, P.C., as its local counsel, and MorrisAnderson as its
financial advisor.
HARPER BRUSH: Committee Taps Freeborn & Peters as Counsel
---------------------------------------------------------
The Official Committee of Unsecured Creditors in the Chapter 11
case of Harper Brush Works, Inc., sought and obtained permission
from the U.S. Bankruptcy Court to retain Freeborn & Peters LLP as
counsel.
As the Committee's counsel, Freeborn & Peters will:
(a) advise the Committee on all legal issues as they arise;
(b) represent and advise the Committee regarding the terms
of any sales of assets or plans of reorganization or
liquidation and assisting the Committee in negotiations
with the Debtor and other parties;
(c) investigate the Debtor's assets and pre-bankruptcy
conduct;
(d) analyze the perfection and priority of the liens of the
Debtors' secured creditors; and
(e) prepare, on behalf of the Committee, all necessary
pleadings, reports, and other papers.
Freeborn & Peters' hourly rates range from $230 per hour for new
associates to $555 per hour for senior partners. Paraprofessional
services will be billed at $185 per hour.
The customary and proposed hourly rates to be charged by the Firm
for individuals expected to be directly involved in representing
the Committee are:
Richard S. Lauter (Partner) $555
Thomas R. Fawkes (Partner) $480
Devon J. Eggert (Associate) $320
Elizabeth L. Rodgers (Associate) $230
Freeborn & Peters will also seek reimbursement of necessary out-
of-pocket expenses.
The firm attests it is a "disinterested person" within the meaning
of Section 101(14) of the Bankruptcy Code.
About Harper Brush Works
Fairfield, Iowa-based Harper Brush Works, Inc., filed a Chapter 11
petition (Bankr. S.D. Iowa) in Des Moines on May 29, 2012.
Family-owned Harper Brush -- http://www.harperbrush.com/--
provides more than 1,000 products, including pushbrooms, mops,
floor squeegees, automotive brushes, dust pans, and buckets. The
Company disclosed assets of $10.4 million against debt totaling
$10 million, including $6 million owing to secured creditors.
Judge Anita L. Shodeen presides over the case. Donald F. Neiman,
Esq., and Jeffrey D. Goetz, Esq., at Bradshaw, Fowler, Proctor &
Fairgrave, P.C., serve as bankruptcy counsel to the Debtor. Marc
B. Ross serves as the Debtor's Chief Restructuring Officer.
An official committee of unsecured creditors has been appointed in
the case. The panel is represented by Freeborn & Peters LLP as
general bankruptcy counsel. The Committee tapped Day Rettig
Peiffer, P.C., as its local counsel, and MorrisAnderson as its
financial advisor.
HARPER BRUSH: Court OKs Day Rettig as Committee's Local Counsel
---------------------------------------------------------------
The Unsecured Creditors' Committee of Harper Brush Works, Inc.,
sought and obtained permission from the U.S. Bankruptcy Court to
retain Day Rettig Peiffer, P.C., as its local counsel.
The Committee needs the firm to, among other things, prepare
motions and applications and conducting examinations incidental to
any related proceedings or to the administration of the Chapter 11
case; and develop the relationship of the status of the Debtor to
the claims of creditors in the case.
The firm attests it is a "disinterested person" as the term is
defined in Section 101(14) of the Bankruptcy Code.
The firm's shareholder, Joseph A. Peiffer, Esq., leads the
engagement. He will charge at a discounted rate of $360 per hour.
The discounted rate for associates of the firm is $270 per hour.
The rate for paralegal services charged by DRP is $100 per hour.
All payments will be subject to approval and allowance by the
Court.
About Harper Brush Works
Fairfield, Iowa-based Harper Brush Works, Inc., filed a Chapter 11
petition (Bankr. S.D. Iowa) in Des Moines on May 29, 2012.
Family-owned Harper Brush -- http://www.harperbrush.com/--
provides more than 1,000 products, including pushbrooms, mops,
floor squeegees, automotive brushes, dust pans, and buckets. The
Company disclosed assets of $10.4 million against debt totaling
$10 million, including $6 million owing to secured creditors.
Judge Anita L. Shodeen presides over the case. Donald F. Neiman,
Esq., and Jeffrey D. Goetz, Esq., at Bradshaw, Fowler, Proctor &
Fairgrave, P.C., serve as bankruptcy counsel to the Debtor. Marc
B. Ross serves as the Debtor's Chief Restructuring Officer.
An official committee of unsecured creditors has been appointed in
the case. The panel is represented by Freeborn & Peters LLP as
general bankruptcy counsel. The Committee tapped Day Rettig
Peiffer, P.C., as its local counsel, and MorrisAnderson as its
financial advisor.
HARPER BRUSH: Court OKs McGladrey as Tax Accountant & Auditors
--------------------------------------------------------------
Harper Brush Works, Inc., sought and obtained permission from the
U.S. Bankruptcy Court to employ McGladrey LLP as general
reorganization tax accountant and auditors.
The firm will, among other things:
a. assist the Debtor with preparation of certain tax reforms
and returns, and providing certain statutory independent
auditing services in connection with the Debtor's "Harper
Brush Works, Inc. Employee Retirement Savings Plan," and
b. assist the Debtor in connection with its annual income and
tax advice and planning, with preparation of its annual
ordinary court federal and state tax returns, and to perform
such customary and ordinary annual independent financial
auditing services.
The Debtor initially scheduled McGladrey as holding a general,
unsecured claim against the Debtor for accrued but unpaid fees and
costs incurred for providing prepetition services in the
approximate amount of $71,594. McGladery has agreed to write off
all prepetition claims against the Debtor, and not file any proof
of claim for prepetition amounts.
McGladrey attests it is a "disinterested person" as the term is
defined in Section 101(14) of the Bankruptcy Code.
According to court papers, the fees for the McGladrey engagement
will be $10,000, plus out-of-pocket expenses.
About Harper Brush Works
Fairfield, Iowa-based Harper Brush Works, Inc., filed a Chapter 11
petition (Bankr. S.D. Iowa) in Des Moines on May 29, 2012.
Family-owned Harper Brush -- http://www.harperbrush.com/--
provides more than 1,000 products, including pushbrooms, mops,
floor squeegees, automotive brushes, dust pans, and buckets. The
Company disclosed assets of $10.4 million against debt totaling
$10 million, including $6 million owing to secured creditors.
Judge Anita L. Shodeen presides over the case. Donald F. Neiman,
Esq., and Jeffrey D. Goetz, Esq., at Bradshaw, Fowler, Proctor &
Fairgrave, P.C., serve as bankruptcy counsel to the Debtor. Marc
B. Ross serves as the Debtor's Chief Restructuring Officer.
An official committee of unsecured creditors has been appointed in
the case. The panel is represented by Freeborn & Peters LLP as
general bankruptcy counsel. The Committee tapped Day Rettig
Peiffer, P.C., as its local counsel, and MorrisAnderson as its
financial advisor.
HARTFORD COMPUTER: Can Use Cash Collateral Thru Sept. 30
--------------------------------------------------------
Hartford Computer Hardware Inc. and its affiliates received
bankruptcy court approval to use cash collateral through the
earliest to occur of (i) Sept. 30, 2012, (ii) the effective date
of a plan of reorganization or liquidation, and (iii) the
occurrence of an event of default.
The order says that Delaware Street Capital Master Fund L.P., the
prepetition lender, consented to the use of cash collateral on
terms that it is granted adequate protection, including
replacement liens and superpriority claims, and the Debtors' use
of cash collateral would be in accordance with a budget.
About Hartford Computer
Schaumburg, Illinois-based Hartford Computer Hardware Inc. and its
affiliated entities are one of the leading providers of repair and
installation services in North America for consumer electronics
and computers. Hartford Computer Hardware operates in three
complementary business lines: parts distribution and repair, depot
repair, and onsite repair and installation. Products serviced
include laptop and desktop computers, commercial computer systems,
flat-screen television, consumer gaming units, printers,
interactive whiteboards, peripherals, servers, POS devices, and
other electronic devices. Hartford Computer Hardware, though all
U.S. companies, operates a significant portion of their business
in Markham, Ontario, Canada.
Hartford Computer Hardware and three units filed for Chapter 11
bankruptcy (Bankr. N.D. Ill. Lead Case No. 11-49744) on Dec. 12,
2011. The affiliates are Hartford Computer Group Inc. (Case No.
11-49750); Hartford Computer Government Inc. (Case No. 11-49752)
and Nexicore Services LLC (Case No. 11-49754). Judge Pamela S.
Hollis oversees the case. John P. Sieger, Esq., Paige E. Barr,
Esq., and Peter A. Siddiqui, Esq., at Katten Muchin Rosenman LLP,
serve as the Debtors' counsel. The Debtors' investment banker is
Paragon Capital Partners, LLC; the special counsel is Thornton
Grout Finnigan LLP; and the notice and claims agent is Kurtzman
Carson Consultants LLC.
The Debtors disclosed $19,013,862 in assets and $72,984,394 in
liabilities as of the Chapter 11 filing. The petitions
were signed by Brian Mittman, chief executive officer.
Hartford Computer obtained Court permission to act as the foreign
representative of the Debtors in Canada to seek recognition of the
Chapter 11 case on the Debtors' behalf, and request the Ontario
Superior Court of Justice (Commercial List) to lend assistance to
the Bankruptcy Court in protecting the Debtors' property.
Avnet Inc., proposed buyer for Nexicore and HCG, is represented by
Frank M. Placenti, Esq., at Squire, Sanders & Dempsey L.L.P.
Delaware Street, the DIP lender, is represented in the case by
Landon S. Raiford, Esq., and Michael S. Terrien, Esq., at Jenner &
Block.
Matthew J. Botica, Esq., and Nancy G. Everett, Esq., at Winston &
Strawn LLP, argue for lenders ARG Investments, Enable Systems,
Inc., MRR Venture LLC, SKM Equity Fund II, L.P. and SKM Investment
Fund II.
The Official Committee of Unsecured Creditors in the Debtors'
cases tapped to retain Levenfeld Pearlstein, LLC, as its counsel
and Crowe Horwath LLP as its financial analysts.
HEALTH INSURANCE: A.M. Best Raises Fin'l. Strength Rating to 'B'
----------------------------------------------------------------
A.M. Best Co. has upgraded the financial strength rating (FSR) to
B+ (Good) from B (Fair) and issuer credit ratings (ICR) to "bbb-"
from "bb+" for Health Insurance Plan of Greater New York (HIP),
HIP Insurance Company of New York and ConnectiCare, Inc.
(Farmington, CT).
Concurrently, A.M. Best has upgraded the FSR to C+ (Marginal) from
C (Weak) and ICRs to "b-" from "ccc+" for Group Health
Incorporated (GHI) and GHI HMO Select, Inc. The outlook for all
ratings is stable. All companies are subsidiaries of
EmblemHealth, Inc. (EmblemHealth) and domiciled in New York, NY,
unless otherwise specified.
The upgrading of the ratings for HIP and ConnectiCare reflect
their continued favorable operating results and strengthening of
their risk-adjusted capitalization through retained earnings.
HIP's favorable operating results mainly are from its Medicare and
state sponsored businesses, and are the main source of earnings
for EmblemHealth in New York State, while ConnectiCare is the main
source of its earnings in Connecticut.
The upgrading of the ratings for HIP Insurance Company of New York
acknowledge the explicit support of its intermediate parent, HIP,
as well as its role as a strategic operating entity for the
organization.
Positive rating movement could occur if HIP continues to record
favorable operating results, reports improved operating results
for its fee-for-service business and improves the quality of
capital for all EmblemHealth subsidiaries. Negative rating
actions could occur if HIP reports a significant decline in
premium revenue, records large operating losses or experiences
material deterioration of its risk-adjusted capital.
The rating upgrades of GHI and GHI HMO Select recognize their
favorable operating performance, strengthened capitalization and
financial support of their intermediate parent, HIP, as well as
their profitable operating results for the first half of 2012.
GHI's operating results turned profitable in the first quarter of
2012, and its favorable earnings continued into the second quarter
mainly from its Medicare business. This comes after it reported
significant underwriting losses over the last three years mainly
in its commercial business. GHI's capitalization remains weak but
has been supplemented through the issuance of surplus notes by
HIP, which A.M. Best believes has a negative impact on its quality
of capital.
Positive rating actions could occur if GHI reports consistently
favorable operating results, shows substantive improvement in its
risk-adjusted capital level and quality and reports improvement in
the operating results from its commercial exclusive provider
organization/preferred provider organization product lines.
Negative rating movement could occur if GHI reports a return to
operating losses, has a significant decline in premium revenue or
experiences deterioration of its risk-adjusted capital.
HUSSEY COPPER: Seeks More Exclusivity as Insurance for Plan
-----------------------------------------------------------
Bill Rochelle, the bankruptcy columnist for Bloomberg News,
reports that Hussey Copper Corp., as an insurance policy, filed a
fifth request for an extension of the exclusive right to propose a
reorganization in case the bankruptcy judge doesn't approve the
Chapter 11 plan at the currently scheduled Sept. 6 confirmation
hearing.
According to the report, if approved by the judge at a Sept. 20
hearing, the deadline for a revised plan would be Nov. 1. Hussey
sold the business for $107.75 million late last year to Libertas
Copper, an affiliate of Patriarch Partners LLC. The plan was
filed in early May.
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). In its
amended schedules, HCL Liquidation disclosed $80,760,296 in assets
and $71,453,842 in liabilities as of the Chapter 11 filing.
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.
INTERNATIONAL FAITH: Case Summary & 6 Largest Unsecured Creditors
-----------------------------------------------------------------
Debtor: International Faith Ministries, Inc.
494 Hillside Avenue
Orange, NJ 07050
Bankruptcy Case No.: 12-31731
Chapter 11 Petition Date: August 31, 2012
Court: United States Bankruptcy Court
District of New Jersey (Newark)
Judge: Rosemary Gambardella
Debtor's Counsel: Bruce H. Levitt, Esq.
LEVITT & SLAFKES, P.C.
76 S. Orange Ave., Suite 305
South Orange, NJ 07079
Tel: (973) 313-1200
E-mail: blevitt@levittslafkes.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
A copy of the Company's list of its six largest unsecured
creditors filed together with the petition is available for free
at http://bankrupt.com/misc/njb12-31731.pdf
The petition was signed by Himrod Ambroise.
JHK INVESTMENTS: Case Summary & 14 Largest Unsecured Creditors
--------------------------------------------------------------
Debtor: JHK Investments, LLC
One Gorham Island, Suite 301
Westport, CT 06880
Bankruptcy Case No.: 12-51608
Chapter 11 Petition Date: August 29, 2012
Court: U.S. Bankruptcy Court
District of Connecticut (Bridgeport)
Judge: Alan H.W. Shiff
Debtor's Counsel: Craig I. Lifland, Esq.
ZEISLER AND ZEISLER, P.C.
558 Clinton Avenue
P.O. Box 3186
Bridgeport, CT 06605
Tel: (203) 368-4234
Fax: (203) 367-9678
E-mail: clifland@zeislaw.com
Estimated Assets: $50,000,001 to $100,000,000
Estimated Debts: $10,000,001 to $50,000,000
The petition was signed by Leon C. Hirsch, member.
Debtor's List of Its 14 Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
------ --------------- ------------
Cohn, Birnbaum & Shea PC -- $30,362
Attn: Mike Mulpeter
100 Pearl Street
Hartford, CT 06103
CBIZ Mahoney Cohen -- $21,345
Attn: S. Golden / J. Gluck
P.O. Box 952753
Saint Louis, MO 63195
Gorham Island Assoc., LP -- $15,108
c/o Marc Nevas Real Estate Inc.
Attn: Doreen Pomerance
250 Post Road East
Westport, CT 06880
High Mountain Ranches Inc. -- $10,860
Anthem BCBS -- $5,466
netCentrix, LLC -- $1,605
Town of Westport Tax Collector -- $1,002
Improved Funding Techniques -- $949
AT&T -- $814
W.B Mason Co., Inc. -- $361
Leaf -- $139
AT&T Wireless -- $99
AT&T Voice Conferencing -- $26
State of CT ? Dept of Labor -- $20
LANTERN PARTNERS: Hires Frost Brown as Attorney
-----------------------------------------------
Lantern Partners, LLC, sought and obtained permission from the
Bankruptcy Court to employ Frost Brown Todd LLC as its counsel.
Frost Brown will, among other things:
(a) advise the Debtor of its powers and duties as debtor-in-
possession;
(b) provide assistance, advice and representation concerning a
plan of reorganization, a disclosure statement relating
thereto, and the solicitation of consents to and
confirmation of that Plan;
(c) advise the Debtor in connection with any sale of assets;
(d) provide assistance, advice and representation concerning
any further investigation of the assets, liabilities and
financial condition of the Debtor it may be required; and
(e) represent the Debtor at hearings or matters pertaining to
its affairs as debtor-in-possession.
To the best of the Debtor's knowledge, Frost Brown is a
"disinterested person" as that term is defined in Section 101(14)
of the Bankruptcy Code.
The rates of Frost Brown attorneys most likely to work for the
Debtor range from $550 per hour in the case of members to $110 per
hour in the case of paraprofessionals. Frost Brown may seek for
reimbursement of related expenses.
Prior to the Petition Date, Frost Brown received a retainer from
the Debtor in the amount of $41,046.
About Lantern Partners
Lantern Partners LLC filed a Chapter 11 petition (Bankr. S.D. Ind.
Case No. 12-06288) on May 25, 2012, in Indianapolis, Indiana. The
Debtor is a single asset real estate as defined in 11 U.S.C., Sec.
101 (51B). The Debtor's principal asset is located at 10500
Kincaid Drive, Fishers, Indiana.
Jeffrey A. Hokanson, Esq., and Jeremy M. Dunn, Esq., at Frost
Brown Todd LLC, serve as the Debtor's bankruptcy counsel. Judge
Anthony J. Metz, III, presides over the case.
LEHMAN BROTHERS: Stipulation Resolves Banque Cantonale Claims
-------------------------------------------------------------
The U.S. Bankruptcy Court in Manhattan approved an agreement
resolving Banque Cantole du Valais' claims against Lehman
Brothers Holdings Inc.
Under the terms of the agreement, Lehman is required to withdraw
its objection to Banque Cantole's claims upon receipt of
documents supporting those claims.
The claims will be disallowed if Banque Cantole fails to turn
over all supporting documents within six months, according to the
deal. The agreement is available without charge at
http://bankrupt.com/misc/LBHI_StipBanque.pdf
The claims are based on so-called "Lehman programs securities."
Early last year, the company proposed the disallowance of Banque
Cantole's claims because they did not contain "valid blocking
numbers" as required by the bankruptcy court's prior order.
A list of the claims is available without charge at
http://bankrupt.com/misc/LBHI_BanqueClaims.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.
LEHMAN BROTHERS: Settles White & Case Claim
-------------------------------------------
The U.S. Bankruptcy Court in Manhattan approved an agreement
resolving Claim No. 60631 filed by White & Case LLP against
Lehman Brothers Holdings Inc.
Claim No. 60631 asserts claims based on so-called Lehman programs
securities, which are held by various banks. The banks either
hold the securities for their own account or they act as
custodians of those securities that are beneficially owned by
their customers.
Pursuant to the agreement, the portion of the claim that has not
yet been transferred to other parties will be deemed held by the
banks. The deal also calls for the assignment of individual
claim numbers for each bank.
A full-text copy of the agreement is available without charge
at http://bankrupt.com/misc/LBHI_StipW&C.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.
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.
LEO PROPERTIES: Voluntary Chapter 11 Case Summary
-------------------------------------------------
Debtor: Leo Properties & Investments, LLC
2840 Keller Springs Road, Suite 801
Carrollton, TX 75006
Bankruptcy Case No.: 12-42341
Chapter 11 Petition Date: August 30, 2012
Court: U.S. Bankruptcy Court
Eastern District of Texas (Sherman)
Debtor's Counsel: Arthur I. Ungerman, Esq.
ARTHUR I. UNGERMAN, ATTORNEY AT LAW
8140 Walnut Hill Lane, Suite 301
Dallas, TX 75231
Tel: (972) 239-9055
Fax: (972)239-9886
E-mail: arthur@arthurungerman.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 Subrata Chatterjee, president.
LYMAN HOLDING: Court OKs Deloitte Unit to Prepare Tax Returns
-------------------------------------------------------------
Lyman Holding Company, et al., sought and obtained approval from
the U.S. Bankruptcy Court to employ Deloitte Tax LLP to prepare
federal and state tax returns for the year ending Dec. 31, 2011,
and which are due on Sept. 17, 2012.
The Debtors previously requested and obtained authority to employ
the accounting firm of Johnson, Tibodeau, Bottin & Co., P.S.C. to
prepare the same federal and state tax returns. Johnson recently
informed the Debtors that it would not complete the returns.
Johnson has not incurred any time or expenses in connection with
tax return preparation and the Debtors do not expect Johnson to
submit any request for payment.
The Debtors previously obtained authority to employ Deloitte Tax
for incidental services in connection with the retention of its
affiliate Deloitte Consulting LLP to prepare forms and assist the
Debtors with the termination of their retirement plans.
Preparation of tax returns is outside the scope of work for which
Deloitte Consulting was retained.
Deloitte Tax will be reimbursed for its out-of-pocket expenses and
paid for work performed on an hourly basis. Deloitte Tax's
professionals will charge hourly rates ranging from $200 to $550.
Mara Proell attests that her firm is a "disinterested person" as
the term is defined in Section 101(14) of the Bankruptcy Code.
About Lyman Lumber
Lyman Lumber Company sells building supplies, such as framing
beams, roofing materials, siding and drywall to residential
builders. The 113-year old company and several affiliates sought
Chapter 11 petition (Bankr. D. Minn. Lead Case No. 11-45190) on
Aug. 4, 2011. Judge Dennis O'Brien presides over the cases.
Lyman Lumber estimated $50 million to $100 million in assets and
$100 million to $500 million in debts. The petition was signed by
James E. Hurd, president and chief executive officer.
The affiliates that filed for Chapter 11 are: Lyman Holding
Company; Automated Building Components, Inc.; Building Material
Wholesalers; Carpentry Contractors Corp.; Construction Mortgage
Investors Co.; Lyman Development Co.; Lyman Lumber of Wisconsin,
Inc.; Lyman properties LLC; Mid-America Cedar, Inc.; Woodinville
Lumber, Inc.; and Woodinville Construction Services LLC.
Cynthia A. Moyer, Esq., Douglas W. Kassebaum, Esq., James L.
Baillie, Esq., and Sarah M. Gibbs, Esq., at Fredrikson &
Bryon, P.A., serve as bankruptcy counsel. BGA Management, LLC
d/b/a Alliance Management, developed and executed a sale process
and marketing strategy for the Debtors' assets.
The Official Committee of Unsecured Creditors of Lyman Lumber
Company tapped Fafinsky, Mark & Johnson, P.A., as its counsel.
Alliance Management is the financial and turnaround consultant.
When they filed for bankruptcy, the Debtors had in hand a term
sheet with SP Asset Management, LLC, a unit of Steel Partners
Holdings L.P., to serve as stalking horse bidder for the assets of
the Debtors. New York City-based Steel Partners is a diversified
holding company that owns and operates businesses in a variety of
industries.
MAINLINE EQUIPMENT: Case Summary & 20 Largest Unsecured Creditors
-----------------------------------------------------------------
Debtor: Mainline Equipment, Inc.
dba Consolidated Repair Group
20917 Higgins Court
Torrance, CA 90501
Bankruptcy Case No.: 12-39746
Chapter 11 Petition Date: August 30, 2012
Court: U.S. Bankruptcy Court
Central District of California (Los Angeles)
Judge: Barry Russell
Debtor's Counsel: David R. Haberbush, Esq.
HABERBUSH & ASSOCIATES, LLP
444 W. Ocean Boulevard, Suite 1400
Long Beach, CA 90802
Tel: (562) 435-3456
Fax: (562) 435-6335
E-mail: dhaberbush@lbinsolvency.com
Estimated Assets: $0 to $50,000
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/cacb12-39746.pdf
The petition was signed by Jennifer PeGan, CFO.
MANLEY INDUSTRIES: Case Summary & 20 Largest Unsecured Creditors
----------------------------------------------------------------
Debtor: Manley Industries, Inc.
P.O. Box 1816
Mooresville, NC 28115
Bankruptcy Case No.: 12-32103
Chapter 11 Petition Date: August 30, 2012
Court: U.S. Bankruptcy Court
Western District of North Carolina (Charlotte)
Judge: J. Craig Whitley
Debtor's Counsel: Travis W. Moon, Esq.
MOON WRIGHT & HOUSTON, PLLC
227 West Trade Street, Suite 1800
Charlotte, NC 28202
Tel: (704) 944-6565
Fax: (704) 944-0380
E-mail: tmoon@mwhattorneys.com
Estimated Assets: $500,001 to $1,000,000
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/ncwb12-32103.pdf
The petition was signed by Brian A. Manley, president.
Affiliate that filed separate Chapter 11 petition:
Entity Case No. Petition Date
------ -------- -------------
Manley Farms, LLC 12-50895 08/30/12
MEDIACOPY TEXAS: Appeals Court Can't Introduce Stay Issues
----------------------------------------------------------
Jeremy Heallen at Bankruptcy Law360 reports that Texas' high court
ruled Friday that an appeals court wrongly overturned the actions
of a state receiver appointed to distribute the assets of a
defunct subsidiary of Infodisc Technology Co., finding that the
court couldn't address issues with the automatic stay that were
not presented in the trial court. The Texas Supreme Court
reinstated a trial court's decision in favor of a court-appointed
receiver and a major creditor of Mediacopy Texas Inc.
About Mediacopy Texas
On Sept. 12, 2004, Infodisc Global Holdings Inc. and subsidiary
Mediacopy Texas, Inc. defaulted on loans provided by International
Commercial Bank of China.
Another unit of Infodisc Technology Co., Mediacopy, Inc., filed a
Chapter 11 bankruptcy petition (Bankr. C.D. Calif. Case No. 04-
32508) on Oct. 22, 2004. The bankruptcy case was dismissed in
December 2005.
On Nov. 30, 2004 -- during the pendency of the bankruptcy
proceedings -- ICBC sued MTI and Infodisc Global in California
state court and sought a receivership for the purpose of
liquidating the collateral. Reciting an agreement between ICBC,
MTI, and Infodisc Global to liquidate all of the assets, the
California receivership order required the receiver to seize and
sell the assets of MTI and Infodisc Global at its business
locations in California, Nevada, Texas, and Canada.
MERRILL ROAD: Case Summary & 20 Largest Unsecured Creditors
-----------------------------------------------------------
Debtor: Merrill Road Investments, LLC
2760 North University Drive
Hollywood, FL 33024
Bankruptcy Case No.: 12-30631
Chapter 11 Petition Date: August 29, 2012
Court: United States Bankruptcy Court
Southern District of Florida (Fort Lauderdale)
Judge: John K. Olson
Debtor's Counsel: David R. Softness, Esq.
DAVID R. SOFTNESS, P.A.
201 S Biscayne Blvd #1740
Miami, FL 33131
Tel: (305) 341-3111
E-mail: david@softnesslaw.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
A copy of the Company's list of its 20 largest unsecured creditors
filed together with the petition is available for free at
http://bankrupt.com/misc/flsb12-30631.pdf
The petition was signed by Hector Vinas, manager of General
Realty, LLC.
MOTORSPORT RANCH: Racetrack Owes $6.3-Mil. to Wells Fargo
--------------------------------------------------------
Bill Rochelle, the bankruptcy columnist for Bloomberg News,
reports that MotorSport Ranch Houston LLC, the owner of automobile
and go-cart racetracks near Houston, filed for Chapter 11
protection last week owing $6.3 million to Wells Fargo Bank NA.
According to the report, 35 miles south of Houston in Angleton,
Texas, the 381-acre facility has a 2.4-mile (3.9 kilometer) auto
circuit with 17 turns and a separate go-cart track.
The Debtor disclosed assets of $13.7 million and debt totaling
$6.5 million, including the bank debt. There is a lawsuit pending
with the bank. Revenue last year was more than $2 million.
MotorSport Ranch Houston, LLC, filed a Chapter 11 petition (Bankr.
S.D. Tex. Case No. 12-36422) on Aug. 30, 2012, in Houston. No
first day motions were filed other than an application to employ
J. Craig Cogwell as attorney.
MOTORSPORT RANCH: Hiring Craig Cowgill as Counsel
-------------------------------------------------
MotorSport Ranch Houston LLC filed papers in court seeking formal
approval of J. Craig Cowgill & Associates P.C. as its Chapter 11
counsel.
Mr. Cowgill charges $500 an hour; his associate attorney bills
$400 an hour. The paralegal/law clerk bills from $95 to $150 an
hour.
On May 30, 2012, the Debtor placed a $25,000 retainer with the
firm to secure the counsel's fees and expenses through the
Debtor's case. According to the court papers, about $5,000 of the
retainer was used prior to the bankruptcy filing for legal fees
and expenses, including "meeting for new investors."
Mr. Cowgill attests his firm represents no adverse interest to the
Debtor or the estate.
Angleton, Texas-based MotorSport Ranch Houston, LLC, dba
MotorSport Properties, Ltd., and MSR Houston, filed a Chapter 11
petition (Bankr. S.D. Tex. Case No. 12-36422) on Aug. 30, 2012, in
Houston. Judge David R. Jones oversees the case. The Debtor
scheduled $13,660,374 in assets and $6,502,902 in liabilities.
The petition was signed by James A. Redmond, president.
NECH LLC: Case Summary & Largest Unsecured Creditor
---------------------------------------------------
Debtor: NECH, LLC
5119 Azusa Canyon Road
Baldwin Park, CA 91706
Bankruptcy Case No.: 12-39607
Chapter 11 Petition Date: August 29, 2012
Court: U.S. Bankruptcy Court
Central District of California (Los Angeles)
Judge: Richard M. Neiter
Debtor's Counsel: Vakhe Khodzhayan, Esq.
KG LAW
1010 N. Central Avenue, Suite 450
Glendale, CA 91202
Tel: (818) 245-1340
Fax: (818) 245-1341
E-mail: vahe@lawyer.com
Scheduled Assets: $9,836,584
Scheduled Liabilities: $286,628,147
The petition was signed by Robert I. Havai, president.
Debtor's List of Its Largest Unsecured Creditors contains only one
entry:
Entity Nature of Claim Claim Amount
------ --------------- ------------
Bank of America, N.A. 5115 Azusa $283,790,245
P.O. Box 2864 Canyon Road,
FL9-100-04-24 Baldwin Park,
Building 100, 4th Floor CA 91706
Jacksonville, FL 32232-9923
ODYSSEY (IX): Court Appoints Jeffrey Warren as Mediator
-------------------------------------------------------
The U.S. Bankruptcy Court for the Middle District of Florida
appointed Jeffrey Warren, Esq., as mediator in the Chapter 11 case
of Odyssey (IX) DP I, LLC.
The Court ordered that the dispute between the Debtor and creditor
VS Jensen Beach Holdings, LLC is subject to a mediation for
possible resolution.
The mediator will be entitled to compensation at the mediator's
normal hourly rate to be jointly paid by the parties upon the
termination of the mediation.
Each party will attend the mediation with counsel and the
individual client or corporate client representative to agree to a
mediated settlement. If an impasse is reached with respect to the
mediation as a result of the failure of a party to comply with the
requirement, the party may be liable for sanctions to include
payment of all fees incurred by the other parties to this
proceeding in connection with the mediation.
About Odyssey (IX) DP I LLC
Lakeland, Florida-based Odyssey (IX) DP I LLC, owns the Ocean
Breeze Plaza, a shopping center in Jensen Beach Florida. Odyssey
(IX) DP I filed for Chapter 11 bankruptcy (Bankr. M.D. Fla. Case
No. 11-22952) on Dec. 16, 2011, after its lender, U.S. Bank N.A.
declared a default on a $16 million construction loan. Judge
Catherine Peek McEwen presides over the case. Edward J. Peterson,
III, Esq., at Stichter, Riedel, Blain & Prosser PA, in Tampa,
Florida, serves as the Debtor's counsel. William Maloney and Bill
Maloney Consulting serves as chief restructuring officer. The
Debtor disclosed $20,318,253 in assets and $15,911,155 in
liabilities as of the Chapter 11 filing. The petition was signed
by Robert Madden, president of OC DIP LLC, the Debtor's manager.
Affiliates that previously filed separate Chapter 11 petitions are
Century/AG - Avondale LLC, Odyssey Properties III LLC, Century
(III) DP III LLC, Odyssey (III) DP III LLC, Odyssey (VI)
Commercial DP I LLC, Odyssey (III) DP IX LLC, Odyssey (III) DP III
LLC, and Odyssey DP III LLC.
PACESETTER FABRICS: Greenberg Glusker OK'd as Successor Counsel
---------------------------------------------------------------
The U.S. Bankruptcy Court for the Central District of California
authorized Pacesetter Fabrics, LLC, to employ of Greenberg Glusker
Fields Claman & Machtinger LLP as its successor general bankruptcy
counsel, effective as of July 1, 2012.
The Debtor previously employed the law firm of Rutter Hobbs &
Davidoff Incorporated and then Davidoff Gold LLP as its general
bankruptcy counsel.
The attorneys at RHD who were representing the Debtor, Brian L.
Davidoff, C. John M. Melissinos, and Claire E. Shin, had intended
to Greenberg Glusker in January 2012 when a majority of the other
attorneys from RHD joined Greenberg Glusker. However due to a
client conflict, the RHD attorneys representing the Debtor joined
Davidoff Gold LLP until the conflict is resolved.
At that time, the same group of attorneys at RHD who provided
services to the Debtor in connection with the bankruptcy case
moved to DG and when the conflict cleared, on July 1, 2012, they
moved from DG to Greenberg Glusker. RHD rendered services to the
Debtor from the Petition Date until Jan. 31, 2012, and DG rendered
services from Feb. 1, 2012 until June 30, 2012. Greenberg Glusker
has since been providing services to the Debtor.
The hourly rates of Greenberg Glusker's personnel are:
Attorneys $275 - $725
Paralegals $70 - $230
Brian L. Davidoff $590
C. John M. Melissinos $450
Claire E. Shin $350
The Debtor also ask that the Court authorize Greenber Glusker to
draw from the client trust account its fees and expenses, in the
same manner as previously allowed to RHD and DG.
Mr. Davidoff, a partner of the law firm of Greenberg Glusker,
assures the Court that the firm is a "disinterested person" as
that term is defined in Section 101(14) of the Bankruptcy Code.
About Pacesetter Fabrics
Based in City of Commerce, California, Pacesetter Fabrics, LLC,
dba Pacesetter Off Price and Pacesetter Garments, is a distributor
of quality textile and garment fabrics in the United States and
international markets. The Company has been in business for over
14 years. The Company is owned 98% by Net, LLC, a California
limited liability company, 1% by Leora Namvar (Ramin Namvar's
wife), and 1% by Massoud Poursalimi (Leora Namvar and David
Poursalimi's father). Net LLC is in turn owned 99% by Ramin
Namvar and 1% Leora Namvar.
Pacesetter Fabrics filed for Chapter 11 bankruptcy (Bankr. C.D.
Calif. Case No. 11-36330) on June 17, 2011. Judge Ernest M.
Robles presides over the case. The Debtor disclosed $33,695,869
in assets and $28,599,582 in liabilities as of the Chapter 11
filing.
Brian Wygle president of Lazarus Resources Group, LLC, a corporate
turnaround consultant, assists Pacesetter with its turnaround and
reorganization efforts and the financial affairs and management of
the Company.
PACIFIC PANORAMA: Case Dismissed After Failing to File Reports
--------------------------------------------------------------
The Hon. Lloyd King of the U.S. Bankruptcy Court for the District
of Nevada has ordered the dismissal of the Chapter 11 case of
Pacific Panorama, LLC.
August B. Landis, Acting United States Trustee for Region 17,
sought dismissal of the Chapter 11 case. The U.S. Trustee said
the Debtor has failed to timely file monthly operating reports and
has failed to discharge its duty to pay quarterly U.S. Trustee
fees assessed. In addition, Debtor has failed to expeditiously
prosecute this bankruptcy case.
The U.S. Trustee contends that an order directing the appointment
of an examiner is not appropriate because the Debtor, as
representative of its bankruptcy estate, has failed to discharge
obligations assigned by applicable provisions of the Bankruptcy
Code and Federal Rules of Bankruptcy Procedure to the bankruptcy
estate's representative: the timely filing of monthly operating
reports and timely payment of and reporting with respect to,
quarterly U.S. Trustee fees assessed pursuant to 28 U.S.C.
1930(a)(6).
In addition, the U.S. Trustee believes the appointment of a
chapter 11 trustee pursuant to Section 1104(a) does not appear to
be appropriate because there is not sufficient evidence to suggest
that the Debtor's reorganization through means other than,
perhaps, a liquidation of the Debtor's assets is possible. The
Acting United States Trustee said that, if the Court is inclined
to order the appointment of a chapter 11 trustee for the sole
purpose of liquidating the Debtor's assets, any liquidation of
Debtor's assets should take place under the expedited liquidation
procedures available under chapter 7 of the Bankruptcy Code.
Conversion of the Debtor's case to a case under chapter 7,
therefore, is the more appropriate alternative remedy in lieu of
the appointment of a chapter 11 trustee.
Las Vegas, Nevada-based Pacific Panorama LLC filed for Chapter 11
bankruptcy protection on Jan. 29, 2010 (Bankr. D. Nev. Case No.
10-11464). The Company listed $10 million to $50 million in
assets and $1 million to $10 million in liabilities.
PALISADES 6300: Ch. 11 Case Fully Administered, Wants Case Closed
-----------------------------------------------------------------
Palisades 6300 West Lake Mead, LLC asks the U.S. Bankruptcy Court
for the District of Nevada to enter a final decree closing the
case effective July 31, 2012.
A Sept. 5, 2012, hearing at 2 p.m. has been set.
As reported in the Troubled Company Reporter on July 24, 2012, the
Debtor has a confirmed Chapter 11 plan that cancels receivership
proceedings for its property, gives the Debtor 10 years to pay
secured creditor U.S. Bank in full, and allows the existing owners
to retain control of the property.
The Plan says the Debtor's property is worth $17.2 million.
The property at West Lake Mead Boulevard in Las Vegas has 280
residential units.
US Bank, owed for a promissory note issued prepetition, will have
an allowed claim of $14.67 million as of June 1, 2012, to be
reduced by cash collateral payments of $100,000. On the effective
date of the Plan, the Debtor agreed to make a principal pay down
of 4400,000 from cash on hand, and $199,7000 from a trust account.
For the remaining amount, U.S. Bank's loan and note will be
extended 10 years, payable at 4.65% interest-only for three years,
then principal and interest at 4.65% for seven years beginning in
year four and amortized over 30 years. Monthly payments will be
made and a balloon payment of the balance due will be made in
10 years.
Confirmation hearings began in April. Bankruptcy Judge Linda B.
Riegle entered the order May 30, 2012.
A copy of the Disclosure Statement explaining the Plan is
available at http://bankrupt.com/misc/Palisades_6300_2nd_DS.pdf
About Palisades 6300
Palisades 6300 West Lake Mead, LLC, filed for Chapter 11
bankruptcy (Bankr. D. Nev. Case No. 11-26180) on Oct. 13, 2011.
Judge Linda B. Riegle oversees the case. Marjorie A. Guymon,
Esq., at Goldsmith & Guymon, P.C., serves as the Debtor's
bankruptcy counsel. In its schedules, the Debtor disclosed
$17,452,917 in assets and $14,733,148 in liabilities.
The professionals assisting the Debtor consist of Valuation
Consultants as real estate appraiser; B&RE Property Management as
property manager and leasing agent for real property belonging to
the estate; and Kenneth Funsten, FamCo Advisory Services, as
interest rate expert.
PALM COAST: Case Summary & 2 Largest Unsecured Creditors
--------------------------------------------------------
Debtor: Palm Coast Commercial Property Ltd Partnership
685 Standish Drive
Saint Augustine, FL 32086
Bankruptcy Case No.: 12-05714
Chapter 11 Petition Date: August 29, 2012
Court: United States Bankruptcy Court
Middle District of Florida (Jacksonville)
Debtor's Counsel: Rehan N. Khawaja, Esq.
BANKRUPTCY LAW OFFICES OF REHAN N KHAWAJA
817 North Main Street
Jacksonville, FL 32202
Tel: (904) 355-8055
Fax: (904) 355-8058
E-mail: khawaja@fla-bankruptcy.com
Scheduled Assets: $2,265,505
Scheduled Liabilities: $3,046,729
Affiliate that simultaneously filed for Chapter 11:
Debtor Case No.
------ --------
Sia Office Building Limited 12-05716
Partnership
Scheduled Assets: $1,059,407
Scheduled Liabilities: $307,729
The petition was signed by Edwin O. Sia, general partner.
A. A copy of Palm Coast's list of its two largest unsecured
creditors filed together with the petition is available for free
at http://bankrupt.com/misc/flmb12-05714.pdf
B. In its list of 20 largest unsecured creditors, Sia Office wrote
only one entry:
Entity Nature of Claim Claim Amount
------ --------------- ------------
BB&T Commercial building $307,729
P.O. Box 1847
Wilson, NC 27894
PATRIOT COAL: Senior Noteholders Also Oppose Venue Transfer
-----------------------------------------------------------
BankruptcyData.com reports that numerous parties -- including the
ad hoc consortium of senior noteholders comprised of institutions
collectively holding approximately $100.6 million (or 40.2%) of
the 8.25% Senior Notes due 2018 -- filed with the U.S. Bankruptcy
Court joinders to the motion of Patriot Coal and its official
committee of unsecured creditors' objections to the motion seeking
a venue transfer for the Chapter 11 case.
The noteholders assert, "The Ad Hoc Consortium respectfully
submits that its views on this matter should be given substantial
weight by the Court. With more than $100 million in unsecured
claims (against all 99 Debtors), the Ad Hoc Consortium may be the
largest organized unsecured creditor consortium in the case. Its
members are located in New York, Connecticut, Wisconsin,
California, Florida, and Minnesota, and its counsel is located in
New York. For this creditor constituency, New York is a far more
convenient forum than the Southern District of West Virginia."
About Patriot Coal
St. Louis-based Patriot Coal Corporation (NYSE: PCX) is a producer
and marketer of coal in the eastern United States, with 13 active
mining complexes in Appalachia and the Illinois Basin. The
Company ships to domestic and international electricity
generators, industrial users and metallurgical coal customers, and
controls roughly 1.9 billion tons of proven and probable coal
reserves.
Patriot Coal and nearly 100 affiliates filed voluntary Chapter 11
petitions in U.S. bankruptcy court in Manhattan (Bankr. S.D.N.Y.
Lead Case No. 12-12900) on July 9, 2012. Patriot said it had
$3.57 billion of assets and $3.07 billion of debts, and has
arranged $802 million of financing to continue operations during
the reorganization.
Davis Polk & Wardwell LLP is serving as legal advisor, Blackstone
Advisory Partners LP is serving as financial advisor, and AP
Services, LLC is providing interim management services to Patriot
in connection with the reorganization. Ted Stenger, a Managing
Director at AlixPartners LLP, the parent company of AP Services,
has been named Chief Restructuring Officer of Patriot, reporting
to the Chairman and CEO. GCG, Inc. serves as claims and noticing
agent.
The case has been assigned to Judge Shelley C. Chapman.
The U.S. Trustee appointed a seven-member creditors committee.
PATRIOT COAL: Taps Bowles Rice for Coal and Property Acquisitions
-----------------------------------------------------------------
Patriot Coal Corporation, et al., ask the U.S. Bankruptcy Court
for the Southern District of New York for permission to employ
Bowles Rice McDavid Graff & Love LLP as special counsel.
Bowles Rice will, among other things:
a. provide advice, representation and preparation of necessary
documentation and to make all necessary filings regarding
(i) coal and other property acquisitions, financings and
other transactions and (ii) regulatory requirements
involving coal properties and operations;
b. defend and provide advice, representation and the
preparation of necessary documentation regarding various
litigation matters, including Federal Black Lung, mining
safety matters and bankruptcy matters where the Debtors are
creditors of the bankrupt party or parties in interest in
the bankruptcy case; and
c. provide advice, representation and the preparation of
necessary documentation regarding issues under local and
state law relating to corporate and commercial matters.
Mark B. D'Antoni, a partner of Bowles Rice, tells the Court that
Bowles Rice holds no retainer against the Debtors. The Debtors
owe Bowles Rice the amount of $38,735 for prepetition fees and
expenses.
To the best of the Debtors' knowledge, Bowles Rice and its
professionals neither represent nor hold any interest adverse to
the Debtors or their estates with respect to the matter on which
Bowles Rice is to be employed.
A Sept. 11 hearing has been set.
About Patriot Coal
St. Louis-based Patriot Coal Corporation (NYSE: PCX) is a producer
and marketer of coal in the eastern United States, with 13 active
mining complexes in Appalachia and the Illinois Basin. The
Company ships to domestic and international electricity
generators, industrial users and metallurgical coal customers, and
controls roughly 1.9 billion tons of proven and probable coal
reserves.
Patriot Coal and nearly 100 affiliates filed voluntary Chapter 11
petitions in U.S. bankruptcy court in Manhattan (Bankr. S.D.N.Y.
Lead Case No. 12-12900) on July 9, 2012. Patriot said it had
$3.57 billion of assets and $3.07 billion of debts, and has
arranged $802 million of financing to continue operations during
the reorganization.
Davis Polk & Wardwell LLP is serving as legal advisor, Blackstone
Advisory Partners LP is serving as financial advisor, and AP
Services, LLC is providing interim management services to Patriot
in connection with the reorganization. Ted Stenger, a Managing
Director at AlixPartners LLP, the parent company of AP Services,
has been named Chief Restructuring Officer of Patriot, reporting
to the Chairman and CEO. GCG, Inc. serves as claims and noticing
agent.
The case has been assigned to Judge Shelley C. Chapman.
The U.S. Trustee appointed a seven-member creditors committee.
PATRIOT COAL: Taps Jackson Kelly for Mine Safety Violations
-----------------------------------------------------------
Patriot Coal Corporation, et al., ask the U.S. Bankruptcy Court
for the Southern District of New York for permission to employ
Jackson Kelly PLLC as special counsel.
Jackson Kelly will assist the Debtors in, among other things:
a) environmental matters relating to the Debtors' many coal
leases, coal property, mines and other properties and
installations;
b) mine safety and health matters, including alleged violations
of the Mine Safety and Health Act;
c) the defense of Federal Black Lung cases; and
d) the defense of West Virginia deliberate intent litigation
(in which West Virginia employees are permitted to bring
actions against employers, under certain circumstances,
regardless of workers compensation laws).
The hourly rates of Jackson Kelly's personnel are:
Members $175 - $395
Associates and Staff Attorneys $145 - $250
Counsel $199 - $325
Paraprofessionals and staff $64 - $150
To the best of the Debtors' knowledge, Jackson Kelly and its
professionals neither represent nor hold any interest adverse to
the Debtors or their estates with respect to the matters on which
Jackson Kelly is to be employed.
A Sept. 11 hearing has been set.
About Patriot Coal
St. Louis-based Patriot Coal Corporation (NYSE: PCX) is a producer
and marketer of coal in the eastern United States, with 13 active
mining complexes in Appalachia and the Illinois Basin. The
Company ships to domestic and international electricity
generators, industrial users and metallurgical coal customers, and
controls roughly 1.9 billion tons of proven and probable coal
reserves.
Patriot Coal and nearly 100 affiliates filed voluntary Chapter 11
petitions in U.S. bankruptcy court in Manhattan (Bankr. S.D.N.Y.
Lead Case No. 12-12900) on July 9, 2012. Patriot said it had
$3.57 billion of assets and $3.07 billion of debts, and has
arranged $802 million of financing to continue operations during
the reorganization.
Davis Polk & Wardwell LLP is serving as legal advisor, Blackstone
Advisory Partners LP is serving as financial advisor, and AP
Services, LLC is providing interim management services to Patriot
in connection with the reorganization. Ted Stenger, a Managing
Director at AlixPartners LLP, the parent company of AP Services,
has been named Chief Restructuring Officer of Patriot, reporting
to the Chairman and CEO. GCG, Inc. serves as claims and noticing
agent.
The case has been assigned to Judge Shelley C. Chapman.
The U.S. Trustee appointed a seven-member creditors committee.
PATRIOT COAL: Taps Steptoe to Handle Admin. Safety Litigation
-------------------------------------------------------------
Patriot Coal Corporation, et al., ask the U.S. Bankruptcy Court
for the Southern District of New York for permission to employ
Steptoe & Johnson PLLC as as special counsel nunc pro tunc to the
Petition Date.
According to the Debtors, Steptoe & Johnson provides day-to-day
legal advice and training on litigation, environmental, safety,
tax, contracts and labor matters. Steptoe & Johnson also handles
safety administrative litigation before the federal Mine, Safety
and Health Administration. Steptoe & Johnson PLLC has represented
Patriot since 1995 on well over 100 matters.
Steptoe & Johnson will, among other things:
a) handle administrative safety litigation before state and
federal agencies that is not stayed by the filing of the
Chapter 11 proceeding; and
b) day-to-day advice and training on litigation, environmental,
safety, tax, contracts and labor matters to assist in
running Debtors' businesses.
C. David Morrison, a member of Steptoe & Johnson assures the Court
that the firm is a "disinterested person" as that term is defined
in Section 101(14) of the Bankruptcy Code.
A Sept. 11 hearing has been set.
About Patriot Coal
St. Louis-based Patriot Coal Corporation (NYSE: PCX) is a producer
and marketer of coal in the eastern United States, with 13 active
mining complexes in Appalachia and the Illinois Basin. The
Company ships to domestic and international electricity
generators, industrial users and metallurgical coal customers, and
controls roughly 1.9 billion tons of proven and probable coal
reserves.
Patriot Coal and nearly 100 affiliates filed voluntary Chapter 11
petitions in U.S. bankruptcy court in Manhattan (Bankr. S.D.N.Y.
Lead Case No. 12-12900) on July 9, 2012. Patriot said it had
$3.57 billion of assets and $3.07 billion of debts, and has
arranged $802 million of financing to continue operations during
the reorganization.
Davis Polk & Wardwell LLP is serving as legal advisor, Blackstone
Advisory Partners LP is serving as financial advisor, and AP
Services, LLC is providing interim management services to Patriot
in connection with the reorganization. Ted Stenger, a Managing
Director at AlixPartners LLP, the parent company of AP Services,
has been named Chief Restructuring Officer of Patriot, reporting
to the Chairman and CEO. GCG, Inc. serves as claims and noticing
agent.
The case has been assigned to Judge Shelley C. Chapman.
The U.S. Trustee appointed a seven-member creditors committee.
PATRIOT COAL: Taps Thompson Coburn for Lawsuits Against Customers
-----------------------------------------------------------------
Patriot Coal Corporation, et al., ask the U.S. Bankruptcy Court
for the Southern District of New York for permission to employ
Thompson Coburn LLC as special counsel.
The Debtors have two lawsuits pending against customers who
breached their purchase obligations to the Debtors under the
applicable coal supply agreements. Thompson Coburn represents the
Debtors in each of these actions. Furthermore, it is possible
that other contractual disputes with customers will arise during
the pendency of these Chapter 11 cases, and the Debtors may
wish to retain Thompson Coburn to represent them in the disputes.
Thompson Coburn will, among other things:
a) advise the Debtors and represent them, as needed, in any
other disputes relating to any customer's failure to meet
its obligations set forth in the parties' coal supply
contracts, including but not limited to representing the
Debtors in negotiations, alternative dispute resolution
and/or litigation against customers that are or are likely
to be in breach of their contractual obligations to the
Debtors; and
b) review and analyze coal sale contracts to identify issues,
if any, arising from the filing of these Chapter 11 cases
and advise the Debtors as to the same.
Roman Wuller, a partner of Thompson Coburn, tells the Court that
the firm will be compensated at rates that reflect a 10% discount
from the rates that Thompson Coburn customarily charges other
clients. As of the Petition Date, the standard rates for
timekeepers are:
David Warfield, partner $510
Mr. Wuller, partner $475
David Farrell, partner $465
Christopher Hobn, partner $430
Kathleen Kraft, partner $350
Mark Mattingly, partner $330
Matthew Guletz, associate $300
David Mangian, associate $240
Felicia Williams, associate $220
Debra Loveless, paralegal $170
To the best of the Debtors' knowledge, Thompson Coburn and its
professionals neither represent nor hold any interest adverse to
the Debtors or their estates with respect to the matter on which
Thompson Coburn is to be employed except for amounts owed by the
Debtors for prepetition services rendered by Thompson Coburn
totaling $13,991.
About Patriot Coal
St. Louis-based Patriot Coal Corporation (NYSE: PCX) is a producer
and marketer of coal in the eastern United States, with 13 active
mining complexes in Appalachia and the Illinois Basin. The
Company ships to domestic and international electricity
generators, industrial users and metallurgical coal customers, and
controls roughly 1.9 billion tons of proven and probable coal
reserves.
Patriot Coal and nearly 100 affiliates filed voluntary Chapter 11
petitions in U.S. bankruptcy court in Manhattan (Bankr. S.D.N.Y.
Lead Case No. 12-12900) on July 9, 2012. Patriot said it had
$3.57 billion of assets and $3.07 billion of debts, and has
arranged $802 million of financing to continue operations during
the reorganization.
Davis Polk & Wardwell LLP is serving as legal advisor, Blackstone
Advisory Partners LP is serving as financial advisor, and AP
Services, LLC is providing interim management services to Patriot
in connection with the reorganization. Ted Stenger, a Managing
Director at AlixPartners LLP, the parent company of AP Services,
has been named Chief Restructuring Officer of Patriot, reporting
to the Chairman and CEO. GCG, Inc. serves as claims and noticing
agent.
The case has been assigned to Judge Shelley C. Chapman.
The U.S. Trustee appointed a seven-member creditors committee.
PEREGRINE DEVELOPMENT: Artman Creative Tapped as Site Planner
-------------------------------------------------------------
Peregrine Development, LLC, has sought and obtained approval from
the U.S. Bankruptcy Court to employ Arthur James, III, d/b/a
Artman Creative R+D, as a site plan designer.
According to papers filed in Court in May, the Debtor required the
services of Artman Creative to preserve revenue from Kid
Structures, Inc., which leases a building from the Debtor. The
leased building was on the Debtor's real property before the sale.
After the sale, the real property on which the building is located
was transferred to the State of Texas. The Debtor must remove the
building from the real property sold to the State of Texas in the
near future. In order to preserve Kid Structures tenancy, the
Debtor must obtain approval from the City of Lewisville to erect a
mobile sales office on the Debtor's real property from which Kid
Structures can conduct business operations. The Debtor must
include a site plan with its request to the City to obtain the
City's approval. Without a site plan and approval from the City,
the Debtor could lose Kid Structures as a tenant, and the monthly
rent paid by Kid Structures of $5,500.
The Court approved the hiring of Artman Creative in a May 31
order. The scope of services to be provided by Artman Creative
included the drafting of a site plan of the Debtor's real property
that demonstrates the relocation of Kid Structures, and removal of
the Debtor's building leased by Kid Structures from the real
property sold to the State of Texas.
Artman Creative estimated that total costs to complete the tasks,
including the Site Plan, would be $4,400. Artman Creative's
compensation structure included:
a. A flat fee for services totaling $4,200, with $2,200
due upon approval of the Application, and $2,000 due upon
completion and delivery of the services;
b. Expenses totaling $200; and
c. Any further fees (billed hourly at $125 per hour) and
expenses to be approved by the Debtor prior to being
incurred by Artman Creative.
The Debtor acknowledged that Artman Creative is not a
"disinterested person" as defined by Section 101(14). Artman
Creative is both a creditor of the Debtor and insider as those
terms are defined by the Bankruptcy Code. Nonetheless, the Debtor
said the retention of Artman Creative is in the best interest of
the Debtor's estate and in the best interest of creditors.
In June, Peregrine Development obtained approval from the
Bankruptcy Court to employ Daniel "Corky" Sherman to serve as
chief reorganization officer. The CRO is assisting the Debtor in
making certain business decisions. The Debtors' co-managers agreed
to tap a CRO following mediation. The Debtors agreed to amend
their plan to set forth the CRO mechanism as the management
structure for the Debtor going forward after confirmation.
Peregrine Development, LLC, in Lewisville, Texas, owns undeveloped
real property in Denton County, Texas where retail and commercial
development continues to occur. The Company filed for Chapter 11
bankruptcy protection (Bankr. E.D. Tex. Case No. 11-41449) on
May 3, 2011, represented by Michael R. Rochelle, Esq., and Eric M
Van Horn, Esq., at Rochelle McCullough L.L.P. In its petition,
the Debtor estimated $10 million to $50 million in assets and
$1 million to $10 million in debts. The petition was signed by
Arthur James, II, manager.
As reported in the Aug. 14, 2012 edition of the Troubled Company
Reporter, there's a hearing Oct. 4 at 10:00 a.m. to consider:
-- confirmation of the Chapter 11 plan for the Debtor that
was proposed by Buckaroo Partners, L.P., Arthur James II,
and Tom James and Arthur James III;
-- a motion to convert the Chapter 11 case to Chapter 7 by
Tom James and Arthur James III;
-- a motion by the U.S. Trustee to have a Chapter 11 trustee
replace management, and
-- a motion by the Debtor for determination that
modifications to the Plan won't adversely change treatment
of any creditor or interest holder.
The hearing was originally scheduled in July but was moved
following an agreed motion for continuance that was presented by
the parties.
Buckaroo Partners, L.P, the co-manager of the Debtor, led the
formulation of the Plan. The disclosure statement explaining the
Plan, which was conditionally approved at a hearing May 29, 2012,
says that all holders of allowed general unsecured claims will be
paid in full with interest within 5 years of the effective date,
and equity holders will retain their interests. The Debtor has
already paid off creditors from the sale of property affected by
the construction of a flyover connecting SH 121 to I-35E.
PEREGRINE FINANCIAL: No Raise Just Yet for Chief Inside Lawyer
--------------------------------------------------------------
Bill Rochelle, the bankruptcy columnist for Bloomberg News,
reports that the trustee for Peregrine Financial Group Inc. was
given authority by the bankruptcy court last week to continue
operating the business until Nov. 12, although he wasn't
immediately given permission to bestow a $20,000 raise on inside
General Counsel Rebecca Wing who's already making $380,000 a year.
According to the report, the bankruptcy judge will resume the
hearing today, Sept. 5, on Ms. Wing's raise. Customers objected
to paying her more.
About Peregrine Financial
Peregrine Financial Group Inc. filed to liquidate under Chapter 7
of the U.S. Bankruptcy Code (Bankr. N.D. Ill. Case No. 12-27488)
on July 10, 2012, disclosing between $500 million and $1 billion
of assets, and between $100 million and $500 million of
liabilities.
Earlier that day, at the behest of the U.S. Commodity Futures
Trading Commission, a U.S. district judge appointed a receiver and
froze the firm's assets. The firm put itself into bankruptcy
liquidation in Chicago later the same day. The CFTC had sued
Peregrine, saying that more than $200 million of supposedly
segregated customer funds had been "misappropriated." The CFTC
case is U.S. Commodity Futures Trading Commission v. Peregrine
Financial Group Inc., 12-cv-5383, U.S. District Court, Northern
District of Illinois (Chicago).
Peregrine's CEO Russell R. Wasendorf Sr. unsuccessfully attempted
suicide outside a firm office in Cedar Falls, Iowa, on July 9.
The bankruptcy petition was signed in his place by Russell R.
Wasendorf Jr., the firm's chief operating officer. The resolution
stated that Wasendorf Jr. was given a power of attorney on July 3
to exercise if Wasendorf Sr. became incapacitated.
Peregrine Financial is the regulated unit of the brokerage
PFGBest.
At a quickly-convened hearing on July 13, the bankruptcy judge
authorized the Chapter 7 trustee to operate Peregrine's business
on a "limited basis" through Sept. 13.
PHYSICIANS CHOICE: Case Summary & 20 Largest Unsecured Creditors
----------------------------------------------------------------
Debtor: Physicians Choice Hospital - Fremont, LLC
2390 Enterprise Street
Fremont, OH 43420
Bankruptcy Case No.: 12-33996
Chapter 11 Petition Date: August 30, 2012
Court: U.S. Bankruptcy Court
Northern District of Ohio (Toledo)
Judge: Richard L. Speer
Debtor's Counsel: John J. Hunter, Jr., Esq.
HUNTER & SCHANK CO. LPA
1700 Canton Avenue
Canton Square, #1
Toledo, OH 43604
Tel: (419) 255-4300
Fax: (419) 255-9121
E-mail: jrhunter@hunterschank.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
A copy of the Company's list of its 20 largest unsecured creditors
filed with the petition is available for free at:
http://bankrupt.com/misc/ohnb12-33996.pdf
The petition was signed by John Wukie, member.
POTOMAC BUSINESS: Can Use IRS, Yellowstone Cash Through Oct. 10
---------------------------------------------------------------
Bankruptcy Judge Robert A. Gordon signed off on a Fifth Interim
Consent Order that permits Potomac Business Environments, LLC, the
continued use of cash collateral from Sept. 1 through and
including Oct. 10, 2012.
The Internal Revenue Service asserts federal tax liens on the
Debtor's property to secure unpaid taxes, penalties and interest
owed by the Debtor. The IRS has filed a secured claim of
$129,634.
Yellowstone Capital, LLC, also asserts a lien on cash collateral
by virtue of a UCC-1 recorded on June 3, 2011 in the approximate
amount of $75,956.
The Debtor disputes that any lien of the IRS or Yellowstone
attaches to funds garnished pursuant to a Writ of Garnishment
issued by the Circuit Court for Baltimore County in civil action
03-C-11-005620 and recovered post-petition as a preferential
transfer from the Debtor's former landlord and a creditor, Merritt
MS1, LLC.
The Debtor lacks sufficient unencumbered cash or other assets with
which to continue to operate its business in Chapter 11. The
Debtor requires continued authority to use Cash Collateral pending
a final hearing or entry of a final order to continue to operate
its business without interruption toward the objective of
formulating an effective plan of reorganization.
The IRS and Yellowstone have agreed on the interim use of cash
collateral, including an Interim Budget.
A final hearing on the use of cash collateral is set for Oct. 10,
2012 at 2:00 p.m. in Courtroom 1-B of the United States Bankruptcy
Court for the District of Maryland.
Attorney for Internal Revenue Service is:
Nancy M. Gilmore, Esq.
Special Assistant U.S. Attorney
Internal Revenue Service
31 Hopkins Plaza, Room 1320
Baltimore, MD 21202
Tel: (410) 962-9848
E-mail: Nancy.M.Gilmore@irscounsel.treas.gov
Attorneys for Yellowstone Capital, LLC, are:
David B. Feder, Esq.
Regosin, Edwards, Stone & Feder
225 Broadway, Suite 613
New York, NY 10007
Tel: (212) 619-1990
E-mail: dfeder@resflaw.com
On Dec. 1, 2011, the Bankruptcy Court entered and Order Approving
Temporary Management and Services Agreement between the Debtor and
All Clear Business Solutions, LLC. The Debtor will file a
Bankruptcy Rule of Procedure 2015.3 report setting forth the
financial details of the IMA. The Debtor and creditors asserting
secured claims against the Debtor agree that amounts owing to the
Manager pursuant to operations under the IMA are not cash
collateral as defined in 11 U.S.C. Section 363(a). Those amounts
due the Manager under the IMA are to be detailed in the Debtor's
monthly IMA Reconciliation Report.
Linthicum Heights, Maryland-based Potomac Business Environments
LLC filed for Chapter 11 bankruptcy (Bankr. D. Md. Case No.
11-29198) on Sept. 23, 2011, Judge Robert A. Gordon presiding.
Paul Sweeney, Esq., at Logan, Yumkas, Vidmar & Sweeney LLC, serves
as the Debtor's counsel. In its petition, the Debtor estimated
assets of $500,001 to $1 million and debts of $1 million to
$10 million. The petition was signed by Erin O'Donovan,
president.
PROTEUS MANUFACTURING: Voluntary Chapter 11 Case Summary
--------------------------------------------------------
Debtor: Proteus Manufacturing Company, Inc.
44 Sixth Road
Woburn, MA 01801
Bankruptcy Case No.: 12-17157
Chapter 11 Petition Date:
Court: U.S. Bankruptcy Court
District of Massachusetts (Boston)
Judge: Henry J. Boroff
Debtor's Counsel: David G. Baker, Esq.
LAW OFFICE OF DAVID G. BAKER
236 Huntington Avenue, Suite 306
Boston, MA 02115
Tel: (617) 340-3680
Fax: (866) 661-5328
E-mail: ecf@bostonbankruptcy.org
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 John J. Tamulynas, III, president.
RADLAX GATEWAY: Sept. 19 Hearing on Case Conversion/Dismissal
-------------------------------------------------------------
The U.S. Bankruptcy Court for the Northern District of Illinois
will convene a hearing on Sept. 19, 2012, at 10:30 a.m. to
consider the motion to convert Radlax Gateway Hotel, et al.'s
Chapter 11 case to one under Chapter 7 of the Bankruptcy Code, or
in the alternative dismiss the case.
The U.S. Trustee for Region 11 believed that the bankruptcy estate
has diminished, that any likelihood of rehabilitation is absent in
the case
The Court, on June 21, 2012, entered an order granting the second
renewed motion of lender for relief from the automatic stay with
respect to the Debtor's primary asset, a hotel.
About RadLAX Gateway Hotel
Oak Brook, Illinois-based RadLAX Gateway Hotel, LLC, operates a
hotel. The Company and its affiliates filed for Chapter 11
bankruptcy (Bankr. N.D. Ill. Case Nos. 09-30047 - 09-30032) on
Aug. 17, 2009. Brian A. Audette, Esq., and David M. Neff, Esq.,
at Perkins Coie LLP, in Chicago, Illinois, represent the Debtors
in their restructuring efforts. RadLAX estimated $50 million to
$100 million in assets and up to $500 million in debts.
Under the Debtor's Second Amended Plan, the liquidating trust will
be established to receive on the effective date the effective date
cash, the sale proceeds and all other property of the Debtors not
conveyed to the Purchaser in accordance with the Asset Purchase
Agreement. The The Liquidating Trust will also receive a total of
$750,000 of Creditor Profit Sharing Income, with $150,000 in Cash
delivered to the Liquidation Trustee within sixty (60) Days
following the expiration of the first Operating Year, $300,000 in
Cash delivered to the Liquidation Trustee within sixty (60) Days
following the expiration of the second Operating Year, and
$300,000 in Cash delivered to the Liquidation Trustee within 60
Days following the expiration of the third Operating Year.
RAVENWOOD HEALTHCARE: Court OKs Steffes Vingiello as Counsel
------------------------------------------------------------
Ravenwood Healthcare, Inc., sought and obtained approval from the
U.S. Bankruptcy Court to employ William E. Steffes and the firm of
Steffes, Vingiello and McKenzie as counsel.
Ravenwood Healthcare, Inc. filed a Chapter 11 petition (Bankr.
M.D. La. Case No. 12-10612) on April 27, 2012, in its home-town in
Baton Rouge. Ravenwood Healthcare is a not-for-profit corporation
which owns and operates the Harborside Nursing and Rehabilitation
Center, a 165-bed skilled care facility in Baltimore, Maryland.
It has 134 hourly rate based and 11 salaried rate based employees.
Bankruptcy Judge Douglas D. Dodd oversees the case.
In its petition, the Debtor estimated $10 million to $50 million
in both assets and debts. The petition was signed by Richard T.
Daspit, Sr., president.
RAVENWOOD HEALTHCARE: Court OKs RBC Capital as Investment Banker
----------------------------------------------------------------
Ravenwood Healthcare, Inc., sought and obtained permission from
the U.S. Bankruptcy Court to employ RBC Capital Markets, LLC, as
its investment banker.
"[T]his order does not approve specific hourly rates for the
applicant," the order approving the application said.
David B. Fields attests that the firm is a "disinterested person"
as the term is defined in Section 101(14) of the Bankruptcy Code.
RBC will serve as an investment banker to the Debtor in connection
with conducting a process to facilitate the sale and disposition
of the Debtor's facility and assets, including:
(i) conducting on site visits of the facility and determining
the need for additional information and diligence items
requisite for the sales process;
(ii) assembling and distributing a market teaser to generate
awareness and interest of the sale of the facility and the
Debtor's assets;
(iii) assembling, distributing, marketing and soliciting the sale
of the Debtor's facility and assets;
(iv) advising of the current market conditions;
(v) coordinating with the Debtor, Trustee, and its counsel and
other stakeholders as needed; and,
(vi) attending meetings and conferences as required.
RBC intends to be compensated as follows: (i) a base fee of
$100,000; (ii) a success fee of 2% of gross proceeds up to
$2,500,000, a fee of 3% of gross proceeds in excess of $2,500,000
but less than $5,000,000, and a fee of 4% of gross proceeds over
$5,000,000; and (iii) it may seek reimbursement of extraordinary
expenses, if any. RBC will apply to the Court for the payment of
compensation and reimbursement of the expenses.
RBC has not received any payments or compensation from the Debtor
in the one-year period prior to the Petition Date.
About Ravenwood Healthcare
Ravenwood Healthcare, Inc. filed a Chapter 11 petition (Bankr.
M.D. La. Case No. 12-10612) on April 27, 2012, in its home-town in
Baton Rouge. Ravenwood Healthcare is a not-for-profit corporation
which owns and operates the Harborside Nursing and Rehabilitation
Center, a 165-bed skilled care facility in Baltimore, Maryland.
It has 134 hourly rate based and 11 salaried rate based employees.
Bankruptcy Judge Douglas D. Dodd oversees the case. William E.
Steffes, Esq., and Noel Steffes Melancon, Esq., at Stefes,
Vingiello & McKenzie, LLC, serve as the Debtor's counsel.
In its petition, the Debtor estimated $10 million to $50 million
in both assets and debts. The petition was signed by Richard T.
Daspit, Sr., president.
RAVENWOOD HEALTHCARE: Patton Boggs Okayed for Medicaid Suits
------------------------------------------------------------
Ravenwood Healthcare, Inc., sought and obtained permission from
the U.S. Bankruptcy Court to employ Patton Boggs, LLP, as special
counsel.
Patton Boggs is serving as special counsel to the Debtor in
connection with allegations brought by the Department of Justice,
the United States Attorneys Office for the District of Maryland,
and the state of Maryland, and the State of Maryland Attorney
General's Office involving claims arising under Federal Laws
pertaining to Medicare and Medicaid, and various state law claims,
including the state and federal False Claims Acts.
The Debtor attests that the firm is a "disinterested person" as
the term is defined in Section 101(14) of the Bankruptcy Code.
The firm intends to be compensated on an hourly basis as:
(a) Leammie-Weidenfield, attorney primarily responsible for
representation, at $655 per hour less a 10% discount;
(b) partners at a rate of $425 to $900 per hour less 10%
discount;
(c) associates at a rate of $250 to $750 per hour less a 10%
discount,
(d) legal assistants and law clerks at a rate of $100 to $290
per hour less a 10% discount.
About Ravenwood Healthcare
Ravenwood Healthcare, Inc. filed a Chapter 11 petition (Bankr.
M.D. La. Case No. 12-10612) on April 27, 2012, in its home-town in
Baton Rouge. Ravenwood Healthcare is a not-for-profit corporation
which owns and operates the Harborside Nursing and Rehabilitation
Center, a 165-bed skilled care facility in Baltimore, Maryland.
It has 134 hourly rate based and 11 salaried rate based employees.
Bankruptcy Judge Douglas D. Dodd oversees the case. William E.
Steffes, Esq., and Noel Steffes Melancon, Esq., at Stefes,
Vingiello & McKenzie, LLC, serve as the Debtor's counsel.
In its petition, the Debtor estimated $10 million to $50 million
in both assets and debts. The petition was signed by Richard T.
Daspit, Sr., president.
RAVENWOOD HEALTHCARE: Submits Amended List of Unsecured Creditors
-----------------------------------------------------------------
Ravenwood Healthcare, Inc., submitted with the U.S. Bankruptcy
Court an amended list of its top largest unsecured creditors.
AP-Don, Inc., and Direct Supply were not in the original list.
Entity Nature of Claim Claim Amount
------ --------------- ------------
Briggs Corporation -- 1,690
PO Box 1355
Des Moines, IA 50305
Staples Advantage -- 1,707
PO Box 83689
Dept. DAL 3368
Chicago, IL 60696
Dr. Daniel R. Howard -- 2,500
1714 Eutan Place
Suite 2A
Baltimore, MD 21217
Alpha Clinical Lab -- 2,814
9-F Gwynns Mill Ct.
Owings Mills, MD
21117
DHMH -- 3,859
4160 Patterson Ave
Baltimore, MD 21215
*Direct Supply -- 3,859
PO Box 88201
Milwaukee, WI 53288
Fireline -- 4,410
4506 Hollins Ferry Rd.
Baltimore, MD 21227
AP-Don, Inc. -- 4,660
902 Sidehill Drive
Bel Air, MD 21015
* AP-Don, Inc. -- 4,660
902 Sidehill Dr.
Bel Air, MD 21015
Maun-Lemke Speaking -- 6,930
8031 West Center
Road
Omaha, NE 68124
BGE -- 8,976
PO Box 13070
Philadelphia, PA 19101
Wells Fargo Bank -- 9,112
PO Box 1450
WF 8113
Minneapolis, MD
55485
Sysco - Baltimore -- 10,207
PO Box 1099
Jessup, MD 20794
Law Office of Timothy -- 13,000
Dixon
9025 Chevrolet Dr.
Suite E
Ellicott City, MD 21042
Brocato Price & -- 21,204
Janofsky
309 Allegheny Ave
Towson, MD 21204
Proactive Therapy -- 22,882
1875 Candlelight Court
Owings Mills, MD
20736
Gulf South Medical -- 25,326
PO Box 841968
Dallas, TX 75284
Director of Finance -- 26,461
Revenue Collections
PO Box 17535
Baltimore, MD
21297-1535
Shapiro Sher & Guinot -- 42,000
36 S. Charles St.
Suite 2000
Baltimore, MD 21201
Milllennium Pharmacy -- 60,504
Solutions
PO Box 823441
Philadelphia, PA 19182
About Ravenwood Healthcare
Ravenwood Healthcare, Inc. filed a Chapter 11 petition (Bankr.
M.D. La. Case No. 12-10612) on April 27, 2012, in its home-town in
Baton Rouge. Ravenwood Healthcare is a not-for-profit corporation
which owns and operates the Harborside Nursing and Rehabilitation
Center, a 165-bed skilled care facility in Baltimore, Maryland.
It has 134 hourly rate based and 11 salaried rate based employees.
Bankruptcy Judge Douglas D. Dodd oversees the case. William E.
Steffes, Esq., and Noel Steffes Melancon, Esq., at Stefes,
Vingiello & McKenzie, LLC, serve as the Debtor's counsel.
In its petition, the Debtor estimated $10 million to $50 million
in both assets and debts. The petition was signed by Richard T.
Daspit, Sr., president.
RENEGADE HOLDINGS: Gov't Wants Money Escrowed for Excise Tax Issue
------------------------------------------------------------------
Richard Craver at Winston-Salem Journal reports that the U.S.
Justice Department has filed another objection to the proposed
bankruptcy reorganization plan of three Mocksville tobacco
companies.
According to the report, the department's Alcohol Tobacco Tax and
Trade Bureau said in a filing Friday that the disclosure statement
for Renegade Holdings Inc., Renegade Tobacco Co., and Alternative
Brands Inc. does not set aside enough money to handle an excise
tax dispute.
The report notes U.S. District Judge William Stocks on Aug. 10
approved the disclosure by Peter Tourtellot, trustee for the three
companies. Mr. Tourtellot filed the statement May 28, amended it
July 20 and modified it again Aug. 10. Judge Stocks set Oct. 9 as
the hearing date for confirmation of the plan, the report adds.
The report says the federal bureau's filing is just the latest
version of its objection, which is shared by the National
Association of Attorneys General. The report notes they disagree
with Mr. Tourtellot over the amount of federal excise tax
Alternative Brands would owe related to its large cigar products.
According to the report, the dispute is scheduled to be heard in
the U.S. District Court for the Middle District of North Carolina.
Mr. Tourtellot has filed motions saying no escrow or reserve is
warranted.
According to the report, the bureau says Alternative owes at least
$3.85 million in excise tax liabilities as of May 31, which does
not include potential penalties and interest. Mr. Tourtellot has
said the company does not owe that amount.
The report relates Mr. Tourtellot's plan for paying the companies'
financial obligations includes pooling at least $15 million into a
liquidation trust and resolving the legal responsibilities,
including ousting Calvin Phelps as owner.
According to the report, creditors approved Renegade's initial
reorganization plan in June 2010. That plan also was opposed by
the attorneys general group, which represents 16 states, including
North Carolina. In July 2010, Judge Stocks vacated the plan and
put the companies back into bankruptcy. He based that decision on
hearing a presentation by the attorneys general about a criminal
investigation in Mississippi involving Mr. Phelps and accusations
of "unlawful trafficking in cigarettes and other related crimes,"
the report recounts.
The report relates Mr. Tourtellot has said Judge Stocks vacated
the first reorganization plan because creditors were not fully
informed of the Phelps criminal investigation and how it could
affect the companies' finances. Those details are included in the
second disclosure statement.
The report adds the plan would allow the firms to continue
operations after exiting bankruptcy and for their financial
obligations to be paid within four years of their exit. It would
keep control initially in Mr. Tourtellot's hands rather than
selling the companies to a third party, which the association
prefers. There would be new equity created for the companies that
Mr. Tourtellot would control until the equity is sold to investors
or distributed to key company managers, or both.
About Renegade Holdings
Renegade Holdings and two subsidiaries -- Alternative Brands, Inc.
and Renegade Tobacco Company -- filed for Chapter 11 protection
(Bankr. M.D.N.C. Lead Case No. 09-50140) on Jan. 28, 2009, and
exited bankruptcy on June 1, 2010. They were put back into
bankruptcy July 19, 2010, when Judge William L. Stocks vacated the
reorganization plan, in part because of a criminal investigation
of owner Calvin Phelps and the companies regarding what
authorities called "unlawful trafficking of cigarettes."
Alternative Brands is a federally licensed manufacturer of tobacco
products consisting primarily of cigarettes and cigars. Renegade
Tobacco distributes the tobacco products produced by ABI through
wholesalers and retailers in 19 states and for export. ABI also
is a contract fabricator for private label brands of cigarettes
and cigars which are produced for other licensed tobacco
manufacturers.
The stock of RHI is owned indirectly by Calvin A. Phelps through
his ownership of the stock of Compliant Tobacco, LLC which, in
turn, owns all of the stock of RHI which in turn owns all of the
stock of RTC and ABI. Mr. Phelps was the chief executive officer
of all three companies. All three of the Debtors' have their
offices and production facilities in Mocksville, North Carolina.
In August 2010, the Bankruptcy Court approved the appointment of
Peter Tourtellot, managing director of turnaround-management
company Anderson Bauman Tourtellot Vos & Co., as Chapter 11
trustee.
RESIDENTIAL CAPITAL: Court Permits CMFG to Pursue Discovery
-----------------------------------------------------------
Judge Martin Glenn approved an agreement among CMFG Life Insurance
Co., Residential Capital LLC and its affiliated debtors. The
agreement calls for the lifting of the automatic stay to allow the
turnover of documents requested by CMFG in connection with the
lawsuit it filed against RBS Securities, Inc. The lawsuit is
pending in a federal court in Wisconsin.
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.
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.
ResCap is selling its mortgage origination and servicing
businesses and its legacy portfolio, consisting mainly of mortgage
loans and other residual financial assets. At the onset of the
bankruptcy case, ResCap struck a deal with Nationstar Mortgage LLC
for the mortgage origination and servicing businesses, and with
Ally Financial for the legacy portfolio. Together, the asset
sales are expected to generate roughly $4 billion in proceeds.
Following a hearing in June, the bankruptcy judge scheduled
auctions for Oct. 23. A hearing to approve the sales was set for
Nov. 5. Fortress Investment Group LLC will make the first bid for
the mortgage-servicing business, while Berkshire Hathaway Inc.
will serve as stalking-horse bidder for the remaining portfolio of
mortgages.
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).
RESIDENTIAL CAPITAL: PNC Seeks Stay Relief to Pursue Action
-----------------------------------------------------------
PNC Mortgage asked the U.S. Bankruptcy Court for the Southern
District of New York to lift the automatic stay to allow
foreclosure of a real property in Washington.
The foreclosure sale involves a real property in Clarkston,
Washington, in which PNC Mortgage is reportedly the senior lien
holder and Homecoming Financial LLC, a debtor affiliate of
Residential Capital LLC, is the junior lien holder.
A court hearing to consider approval of the request is scheduled
for September 11.
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.
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.
ResCap is selling its mortgage origination and servicing
businesses and its legacy portfolio, consisting mainly of mortgage
loans and other residual financial assets. At the onset of the
bankruptcy case, ResCap struck a deal with Nationstar Mortgage LLC
for the mortgage origination and servicing businesses, and with
Ally Financial for the legacy portfolio. Together, the asset
sales are expected to generate roughly $4 billion in proceeds.
Following a hearing in June, the bankruptcy judge scheduled
auctions for Oct. 23. A hearing to approve the sales was set for
Nov. 5. Fortress Investment Group LLC will make the first bid for
the mortgage-servicing business, while Berkshire Hathaway Inc.
will serve as stalking-horse bidder for the remaining portfolio of
mortgages.
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).
RESIDENTIAL CAPITAL: PHH Mortgage Seeks to Pursue Foreclosure
-------------------------------------------------------------
PHH Mortgage Corp. asked the U.S. Bankruptcy Court for the
Southern District of New York to lift the automatic stay to allow
the foreclosure of real properties.
The automatic stay is an injunction that halts actions by
creditors against a company in bankruptcy protection.
PHH is the holder of mortgages on three real properties located
in Florida, Missouri and Indiana. A foreclosure title search,
however, showed that there is a second lien mortgage on the
Florida property held by GMAC Mortgage LLC as well as on the two
other properties, which is held by Homecomings Financial LLC.
GMAC and Homecomings are affiliates of Residential Capital LLC,
which are both in bankruptcy protection.
A court hearing to consider approval of PHH Mortgages request is
scheduled for September 11. Objections were due by September 4.
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.
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.
ResCap is selling its mortgage origination and servicing
businesses and its legacy portfolio, consisting mainly of mortgage
loans and other residual financial assets. At the onset of the
bankruptcy case, ResCap struck a deal with Nationstar Mortgage LLC
for the mortgage origination and servicing businesses, and with
Ally Financial for the legacy portfolio. Together, the asset
sales are expected to generate roughly $4 billion in proceeds.
Following a hearing in June, the bankruptcy judge scheduled
auctions for Oct. 23. A hearing to approve the sales was set for
Nov. 5. Fortress Investment Group LLC will make the first bid for
the mortgage-servicing business, while Berkshire Hathaway Inc.
will serve as stalking-horse bidder for the remaining portfolio of
mortgages.
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).
RESIDENTIAL CAPITAL: SEC Starts Probe on Possible Fraud
-------------------------------------------------------
The U.S. Securities and Exchange Commission formally commenced
investigation Residential Capital, LLC, for possible misconduct
in loan originations and underwriting, and possible fraud in the
sale of mortgage-backed securities, according to various news
reports.
The SEC began the investigation in February to look into ResCap's
mortgage-backed securities programs, which were at the heart of
the 2008 financial crisis, according to Dave Carpenter of
Businessweek. Complaint against ResCap were filed by the SEC in
a federal district court in Los Angeles, Mr. Carpenter said.
Mr. Carpenter said the court filing was part of the SEC's request
to force R.R. Donnelley & Sons Co. to hand over documents it
drafted on behalf of the banks that underwrote the securities.
The federal agency subpoenaed Donnelley in June after the printer
refused to fully comply with the subpoena, claiming that it would
expose itself to potential liability by disclosing the names of
individual borrowers, the report related.
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.
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.
ResCap is selling its mortgage origination and servicing
businesses and its legacy portfolio, consisting mainly of mortgage
loans and other residual financial assets. At the onset of the
bankruptcy case, ResCap struck a deal with Nationstar Mortgage LLC
for the mortgage origination and servicing businesses, and with
Ally Financial for the legacy portfolio. Together, the asset
sales are expected to generate roughly $4 billion in proceeds.
Following a hearing in June, the bankruptcy judge scheduled
auctions for Oct. 23. A hearing to approve the sales was set for
Nov. 5. Fortress Investment Group LLC will make the first bid for
the mortgage-servicing business, while Berkshire Hathaway Inc.
will serve as stalking-horse bidder for the remaining portfolio of
mortgages.
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).
RG STEEL: Liquidates Assets; Leaves Worker Without Jobs
-------------------------------------------------------
Linda Harris at Herald Star reports that RG Steel chose to
liquidate, rather than reorganize, leaving its workers -- many of
them laid off two years or more -- without jobs and benefits.
According to the report, with bankruptcy court approval, RG Steel
auctioned its holdings in Ohio, West Virginia and Maryland off.
The Mingo Junction operation sold for $20 million to Frontier
Industrial, a New York-based company that specializes in salvage
and brownfield development, though company officials said they're
willing to consider proposals to operate certain parts of the
property, including the $250 million electric arc furnace as well
as the continuous caster and 80-inch hot strip mill.
The report relates RG Steel's Yorkville plant sold for roughly
$5 million to Sewickley, Pa.-based Esmark Inc. and South Korea's
TCC Steel, though closing on that deal has been delayed by RG
Steel's failure during the past two years to properly correct and
document problems with pickling-liquor spills at the plant.
Esmark also acquired RG Steel's 50% ownership stake in
Ohio Coatings.
The report says wheeling businessman W. Quay Mull, meanwhile,
picked up the Martins Ferry plant, which he's said he intends to
operate, for $2 million, while RG's Warren operation sold for
$17 million to a Pennsylvania-based salvage company that also has
indicated an interest in operating it. RG Steel's Sparrows Point,
Md., plant was sold at auction for $72 million to Hilco
Industrial.
The report adds the 100-acre Steubenville plant sold in June to
River Rail Development, an arm of the Wheeling-based salvage and
recycling company, Herman Strauss Inc. No buyer has emerged for
RG Steel's 50% ownership stake in Mountain State Carbon, the
Follansbee coke-making operation that's a joint venture with
Russia's Severstal.
About RG Steel
RG Steel LLC -- http://www.rg-steel.com/-- is the United States'
fourth-largest flat-rolled steel producer with annual steelmaking
capacity of 7.5 million tons. It was formed in March 2011
following the purchase of three steel facilities located in
Sparrows Point, Maryland; Wheeling, West Virginia and Warren,
Ohio, from entities related to Severstal US Holdings LLC. RG
Steel also owns finishing facilities in Yorkville and Martins
Ferry, Ohio. It also owns Wheeling Corrugating Company and has a
50% ownership in Mountain State Carbon and Ohio Coatings Company.
RG Steel along with affiliates, including WP Steel Venture LLC,
sought bankruptcy protection (Bankr. D. Del. Lead Case No. 12-
11661) on May 31, 2012, to pursue a sale of the business. The
bankruptcy was precipitated by liquidity shortfall and a dispute
with Mountain State Carbon, LLC, and a Severstal affiliate, that
restricted the shipment of coke used in the steel production
process.
The Debtors estimated assets and debts in excess of $1 billion as
of the Chapter 11 filing. The Debtors owe (i) $440 million,
including $16.9 million in outstanding letters of credit, to
senior lenders led by Wells Fargo Capital Finance, LLC, as
administrative agent, (ii) $218.7 million to junior lenders, led
by Cerberus Business Finance, LLC, as agent, (iii) $130.5 million
on account of a subordinated promissory note issued by majority
owner The Renco Group, Inc., and (iv) $100 million on a secured
promissory note issued by Severstal. RG Steel LLC disclosed
$1,293,320,461 in assets and $1,050,005,993 in liabilities as of
the Chapter 11 filing.
Judge Kevin J. Carey presides over the case.
The Debtors are represented in the case by Robert J. Dehney, Esq.,
and Erin R. Fay, Esq., at Morris, Nichols, Arsht & Tunnell LLP,
and Matthew A. Feldman, Esq., Shaunna D. Jones, Esq., Weston T.
Eguchi, Esq., at Willkie Farr & Gallagher LLP, represent the
Debtors.
Conway MacKenzie, Inc., serves as the Debtors' financial advisor
and The Seaport Group serves as lead investment banker. Donald
MacKenzie of Conway MacKenzie, Inc., as CRO. Kurtzman Carson
Consultants LLC is the claims and notice agent and provides
administrative services.
RG Steel LLC sold the Sparrows Point steel mill to liquidator
Hilco Industrial on Aug. 7 for about $72 million,
Wells Fargo Capital Finance LLC, as Administrative Agent, is
represented by Jonathan N. Helfat, Esq., and Daniel F. Fiorillo,
Esq., at Otterbourg, Steindler, Houston & Rosen, P.C.; and Laura
Davis Jones, Esq., and Timothy P. Cairns, Esq., at Pachuiski Stang
Ziehi & Jones LLP.
Renco Group is represented by lawyers at Cadwalader, Wickersham &
Taft LLP.
An official committee of unsecured creditors has been appointed in
the case. Kramer Levin Naftalis & Frankel LLP represents the
Committee. Saul Ewing LLP serves as co-counsel. Huron Consulting
Services LLC serves as its financial advisor.
ROBERTS HOTELS: Bank of America Withdraws Motion for Stay Relief
----------------------------------------------------------------
Bank of America, N.A., notifies the U.S. Bankruptcy Court for the
Eastern District of Missouri that it has withdrawn its motion for
relief of stay, or in the alternative, terminate plan exclusivity
of Roberts Hotels Houston, LLC, et al.
As reported in the Troubled Company Reporter on July 13, 2012,
Bank of America pointed out that The Fifth Circuit Court of
Appeals noted that the vast majority of chapter 11 cases do not
end with confirmed plans of reorganization (Timbers of Inwood
Forest Assocs., Ltd., 808 F.2d 363, 373 n.17 (5th Cir. 1987).).
Bank of America claims that the Debtors' Chapter 11 cases are
doomed to fail. BofA says dissipating collateral, no financing
source, and stagnant bankruptcy cases constitute grounds for the
Court to lift the automatic stay pursuant to Bankruptcy Code
Sections 362(d)(1) and (d)(2) or alternatively to terminate plan
exclusivity.
BofA, owed by the Debtors $34.28 million in principal, notes that
the Debtors are continuing in the management of their six hotels.
But BofA says its collateral is suffering from the Debtors' lack
of management. It points out that the Houston Hotel, the Tampa
Hotel, and Spartanburg Hotel are closed and are no longer
operating. The Atlanta Hotel is operating at a loss. Shreveport
Hotel will need an infusion of cash by August 2012. Houston Hotel
had suffered significant damage approximately a month prior to the
bankruptcy filing when a nearby water main burst. The receiver
reported that the Tampa Hotel needs essential utilities and
repairs.
BofA said it negotiated with the Debtors towards a DIP financing,
but the Debtors refuse to agree with a condition that they release
BofA from any claims. With no potential for a DIP Credit
Agreement and having no unencumbered assets to support additional
financing, Debtors have no means to fund a plan of reorganization,
BofA asserts.
About Roberts Hotels
Hotel portfolios owned by St. Louis, Mo.-based Roberts Cos. have
filed separate Chapter 11 bankruptcy petitions. The hotels are
among those involved in a lawsuit Bank of America filed against
Roberts Cos. in April 2012. BofA alleges Roberts Cos. defaulted
on a loan to renovate six hotels it owns outside of Missouri and
owes more than $34 million. The hotels are located in Tampa,
Atlanta, Dallas, Houston, Shreveport, La., and Spartanburg, S.C.
Roberts Hotels Dallas LLC, which operates as a Courtyard by
Marriott at 2383 Stemmons Trail in Dallas, filed for Chapter 11
bankruptcy (Bankr. E.D. Mo. Case No. 12-45017) on May 23, 2012,
estimating $1 million to $10 million in assets, and $10 million to
$50 million in debts.
Roberts Hotels Atlanta LLC, dba Clarion Hotel Atlanta, filed for
Chapter 11 (Bankr. E.D. Mo. Case No. 12-44493) on May 9, 2012,
estimating $1 million to $10 million in assets, and $10 million to
$50 million in debts.
Roberts Hotels Shreveport LLC, also under the Clarion flag, sought
Chapter 11 bankruptcy protection (Bankr. E.D. Mo. Case No. 12-
44495) on May 9, estimating under $10 million in assets and
between $10 million and $50 million in debts.
Roberts Hotels Spartanburg LLC, which owns the Clarion Hotel,
formerly named Radisson Hotel & Suites Spartanburg, filed a
Chapter 11 petition (Bankr. E.D. Mo. Case No. 12-43756) on April
19, 2012. It scheduled $3,028,820 in assets and $34,775,209 in
debts.
Roberts Hotels Houston LLC, dba Holiday Inn Houston, filed for
Chapter 11 (Bankr. E.D. Mo. Case No. 12-43590) on April 16, 2012,
listing under $50,000 in assets and up to $50 million in debts.
Roberts Hotels Tampa LLC, which owns the Comfort Inn hotel at 820
East Busch Blvd. in Tampa, filed for Chapter 11 Bankr. E.D. Mo.
Case No. 12-44391) on May 7, estimating assets between $1 million
and $10 million and debts between $10 million and $50 million.
A. Thomas DeWoskin, Esq., at Danna McKitrick, PC, serves as the
Debtors' counsel. The petitions were signed by Mike Kirtley,
chief operating officer.
On Dec. 15, 2011, Roberts Hotels Jackson LLC, which owns Roberts
Walthall Hotel, filed for Chapter 11 protection (Bankr. S.D. Miss.
Case No. 11-04341), estimating both assets and debts of between
$1 million and $10 million. John D. Moore, P.A., represents the
Debtor.
The cases are jointly administered.
ROBERTS HOTELS: CBRE Inc. Approved as Florida/Texas Hotel Broker
----------------------------------------------------------------
The U.S. Bankruptcy Court for the Eastern District of Missouri
authorized Roberts Hotels Houston, LLC, et al., to employ CBRE,
Inc., to assist in the marketing and sale of the hotels located
at:
1775 Parkway Place, Marietta, Georgia,
2383 Stemmons Trail, Dallas, Texas,
11160 S.W. Freeway, Houston, Texas
1419 East 70th Street, Shreveport, Louisiana,
9027 Fair Forest Road, Spartanburg, South Carolina, and
820 East Busch Boulevard, Tampa, Florida .
A summary of the proposed terms and conditions of CBRE's
employmentare:
1. Four percent commission if CBRE uses other brokers to assist
it; three percent if not;
2. hotels may be sold as a group or individually;
3. broker's commission on sales to up to four parties
previously contacted by Debtors is reduced;
To the best of the Debtors' knowlege, CBRE neither holds nor
represents any interest adverse to the Debtors or the estates in
matters for which the brokers are proposed to be retained.
About Roberts Hotels
Hotel portfolios owned by St. Louis, Mo.-based Roberts Cos. have
filed separate Chapter 11 bankruptcy petitions. The hotels are
among those involved in a lawsuit Bank of America filed against
Roberts Cos. in April 2012. BofA alleges Roberts Cos. defaulted
on a loan to renovate six hotels it owns outside of Missouri and
owes more than $34 million. The hotels are located in Tampa,
Atlanta, Dallas, Houston, Shreveport, La., and Spartanburg, S.C.
Roberts Hotels Dallas LLC, which operates as a Courtyard by
Marriott at 2383 Stemmons Trail in Dallas, filed for Chapter 11
bankruptcy (Bankr. E.D. Mo. Case No. 12-45017) on May 23, 2012,
estimating $1 million to $10 million in assets, and $10 million to
$50 million in debts.
Roberts Hotels Atlanta LLC, dba Clarion Hotel Atlanta, filed for
Chapter 11 (Bankr. E.D. Mo. Case No. 12-44493) on May 9, 2012,
estimating $1 million to $10 million in assets, and $10 million to
$50 million in debts.
Roberts Hotels Shreveport LLC, also under the Clarion flag, sought
Chapter 11 bankruptcy protection (Bankr. E.D. Mo. Case No. 12-
44495) on May 9, estimating under $10 million in assets and
between $10 million and $50 million in debts.
Roberts Hotels Spartanburg LLC, which owns the Clarion Hotel,
formerly named Radisson Hotel & Suites Spartanburg, filed a
Chapter 11 petition (Bankr. E.D. Mo. Case No. 12-43756) on April
19, 2012. It scheduled $3,028,820 in assets and $34,775,209 in
debts.
Roberts Hotels Houston LLC, dba Holiday Inn Houston, filed for
Chapter 11 (Bankr. E.D. Mo. Case No. 12-43590) on April 16, 2012,
listing under $50,000 in assets and up to $50 million in debts.
Roberts Hotels Tampa LLC, which owns the Comfort Inn hotel at 820
East Busch Blvd. in Tampa, filed for Chapter 11 Bankr. E.D. Mo.
Case No. 12-44391) on May 7, estimating assets between $1 million
and $10 million and debts between $10 million and $50 million.
A. Thomas DeWoskin, Esq., at Danna McKitrick, PC, serves as the
Debtors' counsel. The petitions were signed by Mike Kirtley,
chief operating officer.
On Dec. 15, 2011, Roberts Hotels Jackson LLC, which owns Roberts
Walthall Hotel, filed for Chapter 11 protection (Bankr. S.D. Miss.
Case No. 11-04341), estimating both assets and debts of between
$1 million and $10 million. John D. Moore, P.A., represents the
Debtor.
The cases are jointly administered.
ROSWELL FESTIVAL: Case Summary & 5 Largest Unsecured Creditors
--------------------------------------------------------------
Debtor: Roswell Festival, LLC
P.O. Box 13063
Atlanta, GA 30324-4712
Bankruptcy Case No.: 12-71519
Chapter 11 Petition Date: August 29, 2012
Court: United States Bankruptcy Court
Northern District of Georgia (Atlanta)
Debtor's Counsel: Lawrence E. Burke, Esq.
LAWRENCE BURKE, P.C.
367 Atlanta Street
Marietta, GA 30060
Tel: (770) 421-1297
Fax: (770) 218-5525
E-mail: lawrenceburke@msn.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
A copy of the Company's list of its five largest unsecured
creditors filed together with the petition is available for free
at http://bankrupt.com/misc/ganb12-71519.pdf
The petition was signed by Jahangard Holdings, LP, sole equity
member.
SAS VENTURES: Case Summary & 20 Largest Unsecured Creditors
-----------------------------------------------------------
Debtor: SAS Ventures, LLC
dba Hampton Inn & Suites
2535 State Road 16
Saint Augustine, FL 32092
Bankruptcy Case No.: 12-05792
Chapter 11 Petition Date: August 31, 2012
Court: United States Bankruptcy Court
Middle District of Florida (Jacksonville)
Debtor's Counsel: Christopher C. Todd, Esq.
MCINTYRE, PANZARELLA, THANASIDES, ET AL
6943 East Fowler Avenue
Temple Terrace, FL 33617
Tel: (813) 899-6059
Fax: (813) 899-6069
E-mail: chris@mcintyrefirm.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
A copy of the list of 20 largest unsecured creditors is
available for free at http://bankrupt.com/misc/flmb12-05792.pdf
The petition was signed by Swati R. Patel, president of Blue Label
Management, Inc., Debtor's manager.
SCO GROUP: Converted to Chapter 7; Continues Suit Against IBM
-------------------------------------------------------------
Bill Rochelle, the bankruptcy columnist for Bloomberg News,
reports that the Chapter 11 case for software developer SCO Group
Inc. was converted in August to a liquidation in Chapter 7 so a
trustee can continue prosecution of an unfair competition suit in
U.S. District Court in Utah against International Business
Machines Corp.
According to the report, the conversion to Chapter 7 was made at
the request of the Chapter 11 trustee who said there is
insufficient cash to pay expenses of Chapter 11 case. Now named
TSC Group Inc., the company sold the Unix system software products
and services business to unXis Inc. for $600,000 cash and warrants
for 3% of its stock.
About SCO Group
The SCO Group (SCOXQ.PK) -- http://www.sco.com/-- was a provider
of UNIX(R) software technology. Headquartered in Lindon, Utah,
SCO had a worldwide network of resellers and developers.
The Company and its affiliate, SCO Operations Inc., filed for
Chapter 11 protection (Bankr. D. Del. Lead Case No. 07-11337) on
Sept. 14, 2007.
Paul Steven Singerman, Esq., and Arthur Spector, Esq., at Berger
Singerman P.A., represented the Debtors in their restructuring
efforts. James O'Neill, Esq., and Laura Davis Jones, Esq., at
Pachulski Stang Ziehl & Jones LLP, served as the Debtors' Delaware
and conflicts counsel. Epiq Bankruptcy Solutions LLC acted as the
Debtors' claims and noticing agent. As of Jan. 31, 2009, the
Company had $8.78 million in total assets, $13.30 million in total
liabilities, and $4.52 million in stockholders' deficit.
On Aug. 25, 2009, the Court approved the appointment of Edward N.
Cahn, Esq., as Chapter 11 Trustee. No official committee of
unsecured creditors has been appointed. Bonnie Glantz Fatell,
Esq., and Stanley B. Tarr, Esq., at Blank Rome LLP, serve as
counsel to the Chapter 11 Trustee.
SMF ENERGY: Committee Can Hire Bast Amron to Probe D&O Claims
-------------------------------------------------------------
The Bankruptcy Court has entered an order granting in part, and
denying in part, without, prejudice, the request of the Official
Committee of Unsecured Creditors of SMF Energy Corporation and its
affiliates to retain Brett M. Amron, Esq., and Bast Amron LLP, as
its special litigation counsel.
The Court's order said the retention is approved pursuant to
11 U.S.C. Sections 327 and 330, nunc pro tunc to July 13, 2012, to
represent the Committee as the "investigation" of claims against
present and former officers and/or directors of the Debtors on an
hourly fee basis.
The remainder of the relief sought in the Committee's application
is denied, without prejudice to either the Committee or the
liquidating trustee appointed under any confirmed plan filing a
renewed application to retain the firm to prosecute D&O claims on
a contingency fee of no greater than 35%, and with a credit to the
estate of 50% of fees incurred and paid in the investigation phase
of the firm's engagement against the contingency fee.
As reported in the July 3, 2012 issue of the Troubled Company
Reporter, the Committee's application proposed to retain Bast
Amron on these terms:
(a) Investigation - Bast Amron will be paid on an hourly fee
basis while investigating potential claims against the
directors and officers of the Debtors through the date of
service of any written demand. Bast Amron will also be
entitled to reimbursement of any out-of-pocket expenses.
Bast Amron's hourly fees and out-of-pocket expenses will be
submitted for approval by the Court under the procedures
governing other professionals then in place.
(b) Commencement and Prosecution - Should the Committee obtain
standing and determine that those claims are to be
prosecuted, from and after service of a written
demand, Bast Amron has agreed to be compensated on a
contingency fee basis, earning 35% of the gross recoveries
resulting from any services performed, plus reimbursement
of out-of-pocket expenses, including any expert witness
fees. Bast Amron will be permitted to seek reimbursement
of any such expenses under the procedures governing other
professionals then in place.
(c) Credit - 50% of any Hourly Fees earned and paid to
Bast Amron for the Investigation will be credited against
the Contingency Fee.
Prior to being chosen to represent the Committee as special
litigation counsel, Bast Amron represented and continues to
represent Chevron Products Company, a creditor of the Debtors.
Therefore, Bast Amron does not meet the definition of
"disinterestedness" in Section 101 of the Bankruptcy Code. Even
so, as special litigation counsel, Bast Amron does not believe
that strict "disinterestedness" is required, only that there be no
conflicts of interest in connection with the particular
engagement, a standard that Bast Amron asserts it successfully
meets.
About SMF Energy
SMF Energy Corporation, a provider of fuel and lubricants for the
trucking, manufacturing and construction industries, and three of
its subsidiaries filed for Chapter 11 bankruptcy (Bankr. S.D. Fla.
Lead Case No. 12-19084) on April 15, 2012. The affiliates are SMF
Services, Inc., H&W Petroleum Company, Inc., and Streicher Realty,
Inc. Fort Lauderdale, Florida-based SMF Energy -- dba Streicher
Mobile Fueling and SMF Generator Fueling Services -- disclosed
$37.0 million in assets and $25.17 million in liabilities as of
Dec. 31, 2011.
SMF sought bankruptcy protection after Wells Fargo Bank, N.A.,
shut off access to a revolving credit loan and declared a default.
The bank is owed $11.2 million, including $8 million on a
revolving credit secured by all assets. SMF Energy disclosed
$16,387,456 in assets and $31,160,009 in liabilities as of the
Chapter 11 filing.
On March 22, 2012, the Company appointed Soneet Kapila of Kapila &
Company, Ft. Lauderdale, Florida, as its chief restructuring
officer.
Judge Raymond B. Ray oversees the case. Lawyers at Genovese
Joblove & Battista, P.A., serves as the Debtors' counsel. Trustee
Services Inc. serves as claims agent. Bayshore Partners, LLC,
serves as their investment banker. The petition was signed by
Soneet R. Kapila, the CRO.
The Debtors tapped Harry Stampler and Stampler Auctions for the
sale and liquidation of the assets of the Debtors located at 200
West Cypress Creek Road, Suite 400, Fort Lauderdale, Florida
through an auction sale scheduled for July 19, 2012, at the
Property.
Steven R. Turner, the Assistant U.S. Trustee 21, appointed three
members to the Official Committee of Unsecured Creditors. Robert
Paul Charbonneau and the law firm of Ehrenstein Charbonneau
Calderin represent the creditors.
The Debtors entered an agreement for Sun Coast Resources to
acquire assets associated with the business of the Debtors in
their various operating locations in the State of Texas for $4
million, absent higher and better offers. The Texas assets
yielded no competing bids from other parties. Competing bids were
submitted with respect to the assets and vehicle outside Texas,
under which Sun Coast was also the stalking horse bidder with a
total offer of $5 million. The auction raised the value of the
assets by $1.75 million. The sales, which closed in June,
generated $10.75 million.
The Debtors in August filed a Plan of liquidation. Wells Fargo
Bank N.A., the secured lender, has been partly paid from the sale
proceeds, pursuant to the cash collateral order. Holders of
unsecured claims estimated to total $5.7 million will recover up
to 70%. Each holder of an unsecured claim not more than $1,000 or
who elect to reduce the claim to $1,000 will recover 100% in cash
on the effective date. Holders of equity interests will only
receive distributions after claimants are paid in full.
SMF ENERGY: Court Approves Ahearn Jasco to Audit 401k Plan
----------------------------------------------------------
SMF Energy Corporation, et al., sought and obtained permission
from the U.S. Bankruptcy Court to employ, nunc pro tunc to June
20, 2012, Anthony M. Palermo, CPA, and Ahearn Jasco & Company to
audit the 401k Plan for the years ending Dec. 31, 2011 and 2012 in
compliance with the annual reporting obligation under the Employee
Retirement Income Security Act of 1974.
Mr. Palermo attests that he is a "disinterested person" as the
term is defined in Section 101(14) of the Bankruptcy Code.
AJC's hourly rates range from $60 to $390 an hour.
AJC estimates that it will cost roughly $8,500 to perform the 2011
audit of the 401k Plan. However, if access is not permitted and
AJC is required to re-audit the 2010 statement of net assets
available for the benefits of the 401k Plan, AJC estimates that
its fees for professional services for the 2011 audit would be
roughly $9,750.
About SMF Energy
SMF Energy Corporation, a provider of fuel and lubricants for the
trucking, manufacturing and construction industries, and three of
its subsidiaries filed for Chapter 11 bankruptcy (Bankr. S.D. Fla.
Lead Case No. 12-19084) on April 15, 2012. The affiliates are SMF
Services, Inc., H&W Petroleum Company, Inc., and Streicher Realty,
Inc. Fort Lauderdale, Florida-based SMF Energy -- dba Streicher
Mobile Fueling and SMF Generator Fueling Services -- disclosed
$37.0 million in assets and $25.17 million in liabilities as of
Dec. 31, 2011.
SMF sought bankruptcy protection after Wells Fargo Bank, N.A.,
shut off access to a revolving credit loan and declared a default.
The bank is owed $11.2 million, including $8 million on a
revolving credit secured by all assets. SMF Energy disclosed
$16,387,456 in assets and $31,160,009 in liabilities as of the
Chapter 11 filing.
On March 22, 2012, the Company appointed Soneet Kapila of Kapila &
Company, Ft. Lauderdale, Florida, as its chief restructuring
officer.
Judge Raymond B. Ray oversees the case. Lawyers at Genovese
Joblove & Battista, P.A., serves as the Debtors' counsel. Trustee
Services Inc. serves as claims agent. Bayshore Partners, LLC,
serves as their investment banker. The petition was signed by
Soneet R. Kapila, the CRO.
The Debtors tapped Harry Stampler and Stampler Auctions for the
sale and liquidation of the assets of the Debtors located at 200
West Cypress Creek Road, Suite 400, Fort Lauderdale, Florida
through an auction sale scheduled for July 19, 2012, at the
Property.
Steven R. Turner, the Assistant U.S. Trustee 21, appointed three
members to the Official Committee of Unsecured Creditors. Robert
Paul Charbonneau and the law firm of Ehrenstein Charbonneau
Calderin represent the creditors.
The Debtors entered an agreement for Sun Coast Resources to
acquire assets associated with the business of the Debtors in
their various operating locations in the State of Texas for $4
million, absent higher and better offers. The Texas assets
yielded no competing bids from other parties. Competing bids were
submitted with respect to the assets and vehicle outside Texas,
under which Sun Coast was also the stalking horse bidder with a
total offer of $5 million. The auction raised the value of the
assets by $1.75 million. The sales, which closed in June,
generated $10.75 million.
The Debtors in August filed a Plan of liquidation. Wells Fargo
Bank N.A., the secured lender, has been partly paid from the sale
proceeds, pursuant to the cash collateral order. Holders of
unsecured claims estimated to total $5.7 million will recover up
to 70%. Each holder of an unsecured claim not more than $1,000 or
who elect to reduce the claim to $1,000 will recover 100% in cash
on the effective date. Holders of equity interests will only
receive distributions after claimants are paid in full.
SMF ENERGY: Hires Sentinel Benefits; To Terminate Retirement Plan
-----------------------------------------------------------------
SMF Energy Corporation, et al., ask for the U.S. Bankruptcy Court
to enter an order authorizing their employment of Sentinel
Benefits & Financial Group, nunc pro tunc to April 25, 2012, and
authorizing the Debtors, through Sentinel, to terminate the
Debtors retirement plan and/or 401k Plan.
Lisa Jones attests that the firm is a "disinterested person" as
the term is defined in Section 101(14) of the Bankruptcy Code.
Given the liquidation of the Debtors' business and the fact that
substantially all of the Debtors' assets have been or will be
sold, the Debtors seek to employ Sentinel to terminate the
Debtors' 401k Plan.
As a result of the pending Chapter 11 cases, the Debtors have
requested that Sentinel render services necessary to terminate the
Debtors' 401k Plan under Sec. 704(a)(11) of the Bankruptcy Code
and other applicable law, including the Employee Retirement Income
Security Act of 1974.
Prior to the Petition Date, Sentinel served as the third-party
administrator of the 401k Plan and therefore is best suited to
assist the Debtors with fulfilling their obligations to
administer, and specifically to terminate, the 401k Plan pursuant
to the Bankruptcy Code.
As of July 25, 2012, the 401k Plan had 41 total participants and
$403,358 in allocated assets. Of the Plan Participants, 23 are
active, 4 are active with no 401k Plan account balance, and 14 are
active but not contributing to their 401k Plan account.
Additionally, there is currently $3,657 in total outstanding loans
held by three of the Plan Participants. Therefore, the total
contracted assets for the 401k Plan is $407,015. Further,
according to Sentinel's books and records for the 401k Plan, there
are no funding deficiencies with respect to the 401k Plan and
there are no employer contributions owed.
Pursuant to the Retention Letter and as required by law, Sentinel
requests authorization to take the following steps necessary to
terminate the 401k Plan, which include but are not limited to:
(a) Choosing a termination date and advising employees to select
a date certain to discontinue contributions to their 401k
Plan account on or prior to the chosen termination date;
(b) Drafting a Plan Termination Amendment to the 401k Plan, for
review and execution by the 401k Plan Trustee, Tim Shaw;
(c) Reviewing the Discontinuance Paperwork provided from the
401k Plan Records Keeper and Custodian, John Hancock, and
advising the Trustee, after review and consideration, to
execute the Discontinuance Paperwork;
(d) Authorizing the Custodian to mail all Plan Participants the
necessary paperwork to be completed to provide participants
the option to elect a cash distribution from their 401k Plan
account or to "roll over" their account balance into a new
or other qualified retirement account;
(e) Completing the final mandatory compliance testing for the
401k Plan before issuing final distributions to plan
participants and/or rolling over account balances into new
or other qualified retirement accounts; and
(f) All other actions necessary to effectuate a termination of
the 401k Plan in accordance with ERISA, the Bankruptcy Code
and all other applicable law.
Sentinel will bill the Debtors at an initial flat fee rate of
$1,000, plus an hourly rate of $150 for any additional data
collection services provided with respect to years during which
Sentinel did not provide record keeping services to the Debtors.
Sentinel reserves the right to increase its hourly rates in
accordance with its normal and customary business practices.
Sentinel will seek compensation for the services of each
professional and paraprofessional acting on behalf of the Debtors
in the Chapter 11 cases at the then-current rate charged for the
services. Consistent with Sentinel's billing policies with
respect to other clients, it will continue to charge the Debtors
for all other services provided and for other charges and
disbursements incurred in the rendition of services.
Sentinel and the Debtors anticipate that Sentinel's total
compensation for the services to be performed pursuant to this
proposed representation will not exceed $5,000.
About SMF Energy
SMF Energy Corporation, a provider of fuel and lubricants for the
trucking, manufacturing and construction industries, and three of
its subsidiaries filed for Chapter 11 bankruptcy (Bankr. S.D. Fla.
Lead Case No. 12-19084) on April 15, 2012. The affiliates are SMF
Services, Inc., H&W Petroleum Company, Inc., and Streicher Realty,
Inc. Fort Lauderdale, Florida-based SMF Energy -- dba Streicher
Mobile Fueling and SMF Generator Fueling Services -- disclosed
$37.0 million in assets and $25.17 million in liabilities as of
Dec. 31, 2011.
SMF sought bankruptcy protection after Wells Fargo Bank, N.A.,
shut off access to a revolving credit loan and declared a default.
The bank is owed $11.2 million, including $8 million on a
revolving credit secured by all assets. SMF Energy disclosed
$16,387,456 in assets and $31,160,009 in liabilities as of the
Chapter 11 filing.
On March 22, 2012, the Company appointed Soneet Kapila of Kapila &
Company, Ft. Lauderdale, Florida, as its chief restructuring
officer.
Judge Raymond B. Ray oversees the case. Lawyers at Genovese
Joblove & Battista, P.A., serves as the Debtors' counsel. Trustee
Services Inc. serves as claims agent. Bayshore Partners, LLC,
serves as their investment banker. The petition was signed by
Soneet R. Kapila, the CRO.
The Debtors tapped Harry Stampler and Stampler Auctions for the
sale and liquidation of the assets of the Debtors located at 200
West Cypress Creek Road, Suite 400, Fort Lauderdale, Florida
through an auction sale scheduled for July 19, 2012, at the
Property.
Steven R. Turner, the Assistant U.S. Trustee 21, appointed three
members to the Official Committee of Unsecured Creditors. Robert
Paul Charbonneau and the law firm of Ehrenstein Charbonneau
Calderin represent the creditors.
The Debtors entered an agreement for Sun Coast Resources to
acquire assets associated with the business of the Debtors in
their various operating locations in the State of Texas for $4
million, absent higher and better offers. The Texas assets
yielded no competing bids from other parties. Competing bids were
submitted with respect to the assets and vehicle outside Texas,
under which Sun Coast was also the stalking horse bidder with a
total offer of $5 million. The auction raised the value of the
assets by $1.75 million. The sales, which closed in June,
generated $10.75 million.
The Debtors in August filed a Plan of liquidation. Wells Fargo
Bank N.A., the secured lender, has been partly paid from the sale
proceeds, pursuant to the cash collateral order. Holders of
unsecured claims estimated to total $5.7 million will recover up
to 70%. Each holder of an unsecured claim not more than $1,000 or
who elect to reduce the claim to $1,000 will recover 100% in cash
on the effective date. Holders of equity interests will only
receive distributions after claimants are paid in full.
SOLYNDRA LLC: Taps Environ Int'l as Environmental Consultant
------------------------------------------------------------
Solyndra LLC asks the U.S. Bankruptcy Court for the District of
Delaware for authorization to employ Environ International
Corporation as environmental consultant for the purpose of
evaluating the environmental condition of the Debtors' formerly
leased facility located at 1210 California Circle, Milpitas,
California.
The Debtors seek to retain the services of ENVIRON to facilitate
the Debtors' negotiations with its former landlord at the
property, iStar CTL I, L.P., and prepare for litigation against
the landlord, including with respect to the landlord's objection
to the Debtors' motion to reject the lease and the landlord's
motion for an administrative expense claim and other relief.
Specifically, ENVIRON will, among other things:
i. participate in telephone conversations with individuals who
have knowledge regarding the environmental condition of the
property;
ii. review documents regarding the environmental condition of
the property;
iii. conduct a one-day site visit at the property; and
iv. prepare an expert report summarizing ENVIRON's conclusions
regarding the environmental condition of the property.
The hourly rates of ENVIRON's personnel are:
Principal $310
Manager I Senior Consultant 10 $250
Manager/Senior Consultant 9 $225
Manager/Senior Consultant 8 $200
Senior Associate 7 $180
Senior Associate 6B $170
Associate 6 $150
Associate 5 $140
Associate 4 $130
Drafting/Support $75
To the best of the Debtors' knowledge, ENVIRON is a "disinterested
person" as that term is defined in Section 101(14) of the
Bankruptcy Code.
A hearing on Sept. 8, 2012 at 10:30 a.m., has been set.
About Solyndra LLC
Founded in 2005, Solyndra LLC was 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.
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.
The Official Committee of Unsecured Creditors of Solyndra LLC has
tapped Blank Rome LLP as counsel and BDO Consulting as financial
advisors.
In October 2011, the Debtors hired Berkeley Research Group, LLC,
and designated R. Todd Neilson as Chief Restructuring Officer.
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.
When they filed for Chapter 11, the Debtors pursued 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 were unable to identify any potential
buyers, an orderly liquidation of the assets for the benefit of
their creditors.
Solyndra did not receive acceptable offers to buy the business as
a going concern. Two auctions late last year brought in a total
of $8 million. A three-day auction in February generated another
$3.8 million. An auction in June generated $1.79 million from the
sale of 7,200 lots of equipment.
Solyndra filed a liquidating plan at the end of July and scheduled
a hearing on Sept. 7 for approval of the explanatory disclosure
statement. The Plan is designed to pay 2.5% to 6%
to unsecured creditors with claims totaling as much as $120
million. Unsecured creditors with $27 million in claims against
the holding company are projected to have a 3% dividend.
SOUTHFIELD OFFICE: Case Summary & 20 Largest Unsecured Creditors
----------------------------------------------------------------
Debtor: Southfield Office Building 1, LP
c/o Southfield Office Building GP 1, LLC
Olivia L. Chen Living Trust, Member
1495 Country Club Drive
Los Altos, CA 94024
Bankruptcy Case No.: 12-12423
Chapter 11 Petition Date: August 29, 2012
Court: United States Bankruptcy Court
District of Delaware (Delaware)
Judge: Brendan Linehan Shannon
Debtor's Counsel: Thomas Joseph Francella, Jr., Esq.
WHITEFORD TAYLOR PRESTON LLC
The Renaissance Centre, Suite 500
405 North King Street
Wilmington, DE 19801
Tel: (302) 357-3252
Fax: (302) 357-3272
E-mail: tfrancella@wtplaw.com
Estimated Assets: $500,001 to $1,000,000
Estimated Debts: $10,000,001 to $50,000,000
A copy of Southfield Office Building 1's list of its 20 largest
unsecured creditors filed together with the petition is available
for free at http://bankrupt.com/misc/deb12-12423.pdf
Its affiliates submitted the same list of creditors.
Affiliates that simultaneously filed for Chapter 11 on Aug. 29:
Debtor Case No.
------ --------
Southfield Office Building 1, LP 12-12423
Southfield Office Building 3, LP 12-12426
Southfield Office Building 7, LP 12-12428
Southfield Office Building 8, LP 12-12429
Affiliates that simultaneously filed for Chapter 11 on Aug. 30:
Debtor Case No.
------ --------
Southfield Office Building 2, LP 12-12451
Assets: $500,001 to $1,000,000
Debts: $10,000,001 to $50,000,000
Southfield Office Building 5, LP 12-12453
Southfield Office Building 9, LP 12-12457
Southfield Office Building 19, LP 12-12459
Southfield Office Building 22, LP 12-12460
Southfield Office Building 25, LP 12-12462
The petitions were signed by Olivia L. Chen, trustee of the Olivia
L. Chen Living Trust.
SOUTH LAKES DAIRY: Can Use Cash Collateral Through Sept. 19
-----------------------------------------------------------
South Lakes Dairy Farm obtained interim Court authority to use
through Sept. 19 the cash that secures its obligations under
prepetition loans. There's a hearing at 10:00 a.m. on Sept. 19 in
bankruptcy court in Fresno, California, for South Lakes' continued
use of cash collateral.
South Lakes Dairy Farm filed a bare-bones Chapter 11 petition
(Bankr. E.D. Calif. Case No. 12-17458) in Fresno, California on
Aug. 30, 2012, disclosing $19.5 million in assets and $25.4
million in liabilities in its schedules. The Debtor said it has
$1.97 million in accounts receivable charged to Dairy Farmers of
America on account of milk proceeds, and that it has cattle worth
$12.06 million. The farm owes $12.7 million to Wells Fargo Bank
on a secured note. A copy of the schedules is available for free
at http://bankrupt.com/misc/caeb12-17458.pdf
Bankruptcy Judge W. Richard Lee presides over the case. The
Debtor has tapped Klein, DeNatale, Goldner, Cooper, Rosenlieb
& Kimball, LLP, as counsel.
STANFORD INT'L: SEC Appeals Ruling on SIPC Cover
------------------------------------------------
Sindhu Sundar at Bankruptcy Law360 reports that the U.S.
Securities and Exchange Commission will challenge a Washington
federal judge's ruling that Securities Investor Protection Corp.
doesn't have to help cover victims' losses from convicted Robert
Allen Stanford's $7 billion Ponzi scheme, the regulator said
Friday.
Domiciled in Antigua, Stanford International Bank Limited --
http://www.stanfordinternationalbank.com/-- is a member of
Stanford Private Wealth Management, a global financial services
network with US$51 billion in deposits and assets under
management or advisement. Stanford Private Wealth Management
serves more than 70,000 clients in 140 countries.
On Feb. 16, 2009, the United States District Court for the
Northern District of Texas, Dallas Division, signed an order
appointing Ralph Janvey as receiver for all the assets and
records of Stanford International Bank, Ltd., Stanford Group
Company, Stanford Capital Management, LLC, Robert Allen Stanford,
James M. Davis and Laura Pendergest-Holt and of all entities they
own or control. The February 16 order, as amended March 12,
2009, directs the Receiver to, among other things, take control
and possession of and to operate the Receivership Estate, and to
perform all acts necessary to conserve, hold, manage and preserve
the value of the Receivership Estate.
The U.S. Securities and Exchange Commission, on Feb. 17, charged
before the U.S. District Court in Dallas, Texas, Mr. Stanford and
three of his companies for orchestrating a fraudulent, multi-
billion dollar investment scheme centering on an US$8 billion
Certificate of Deposit program.
A criminal case was pursued against him in June before the U.S.
District Court in Houston, Texas. Mr. Stanford pleaded not
guilty to 21 charges of multi-billion dollar fraud, money-
laundering and obstruction of justice. Assistant Attorney
General Lanny Breuer, as cited by Agence France-Presse News, said
in a 57-page indictment that Mr. Stanford could face up to 250
years in prison if convicted on all charges. Mr. Stanford
surrendered to U.S. authorities after a warrant was issued for
his arrest on the criminal charges.
The criminal case is U.S. v. Stanford, H-09-342, U.S. District
Court, Southern District of Texas (Houston). The civil case is
SEC v. Stanford International Bank, 3:09-cv-00298-N, U.S.
District Court, Northern District of Texas (Dallas).
TAICOM SECURITIES: Chapter 15 Case Summary
------------------------------------------
Chapter 15 Debtor: Taicom Securities Co., Ltd.
1-5-5, Nishishinsaibashi
Chuo-Ku, Osaka
Foreign
Representative: Akihiro Sakaguchi, as trustee
Chapter 15 Case No.: 12-20383
Chapter 15 Petition Date: August 31, 2012
Court: Central District of California (Santa Ana)
About the Debtor: Founded in 1956, Taicom Securities was a futures
Commission merchant from Chuo-ku, Osaka,
Japan. In May 2011, it commenced its business
of accepting securities consignments as an
official transaction participant of the Osaka
Securities Exchange.
The Debtor was forced to file a liquidation
proceeding under Bankruptcy Act
(of Japan) in December 2009.
Foreign
Representative's
Counsel: Matthew J. Riopelle, Esq.
FOLEY & LARDNER LLP
402 W Broadway Ste 2100
San Diego, CA 92101
Tel: (619) 234-6655
Fax: (619) 234-3510
E-mail: mriopelle@foley.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $10,000,001 to $50,000,000
The petition was signed by Akihiro Sakaguchi.
TARCO SOUTH: Case Summary & Largest Unsecured Creditor
------------------------------------------------------
Debtor: Tarco South, Inc., a foreign corporation
960 Oak Avenue N
Onalaska, WI 54650
Bankruptcy Case No.: 12-14867
Chapter 11 Petition Date: August 30, 2012
Court: U.S. Bankruptcy Court
Western District of Wisconsin (Eau Claire)
Judge: Thomas S. Utschig
Debtor's Counsel: Lee J. Fehr, Esq.
FEHR LAW OFFICE
205 Green Street
Onalaska, WI 54650-0608
Tel: (608) 783-3647
Fax: (608)779-9366
E-mail: lfehr@fehrlawoffice.com
Scheduled Assets: $1,340,300
Scheduled Liabilities: $665,719
The petition was signed by Michael S. Tooke & Tamara E. Tooke,
president & vice president.
The Company's list of its largest unsecured creditors filed with
the petition contains only one entry:
Entity Nature of Claim Claim Amount
------ --------------- ------------
Collins Outdoor Advertising Judgment $987
325 North Third Street
La Crosse, WI 54601
TCB PROPERTY: Case Summary & 2 Largest Unsecured Creditors
----------------------------------------------------------
Debtor: TCB Property Development, LLC
1310 North Main Street
Hendersonville, NC 28792
Bankruptcy Case No.: 12-10699
Chapter 11 Petition Date: August 30, 2012
Court: U.S. Bankruptcy Court
Western District of North Carolina (Asheville)
Judge: George R. Hodges
Debtor's Counsel: David G. Gray, Esq.
81 Central Avenue
Asheville, NC 28801
Tel: (828) 254-6315
E-mail: judyhj@wgcdlaw.com
Scheduled Assets: $1,781,500
Scheduled Liabilities: $1,892,708
A copy of the Company's list of its two largest unsecured
creditors filed with the petition is available for free at:
http://bankrupt.com/misc/ncwb12-10699.pdf
The petition was signed by John L. Pace, member/manager.
TOM JONES: Women's Wear Retailer Searle Looking for Buyer
---------------------------------------------------------
Bill Rochelle, the bankruptcy columnist for Bloomberg News,
reports that Searle, the women's wear retailer in Chapter 11 for
more than four years, is looking for a buyer.
At the time of the Chapter 11 filing, Searle Blatt & Co. and Tom
Jones Inc., operated seven high-end women's apparel and accessory
stores in Manhattan. The company also manufactures women's wear
sold at upscale retailers.
Today, there are three on the east side of Manhattan, according to
321 Capital Partners LLC, which was hired to market the business.
The stores reported a $187,000 net loss in July on net revenue of
$678,000. Since the inception of the Chapter 11 case, the
accumulated net loss is $4.9 million on net sales of $55.5
million.
About Tom Jones
Tom Jones Inc. and Searle Blatt & Co. sought Chapter 11 protection
(Bankr. S.D.N.Y. Cse No. 09-10106 and 09-10107) on Jan. 7, 2009 in
Manhattan. Tom Jones estimated $1 million to $10 million in
assets. The Debtors are represented by Harold S. Berzow, Esq., at
Ruskin Moscou Faltischek, P. C., in Uniondale, New York.
TRANSACTA PRIVE: Case Summary & 20 Largest Unsecured Creditors
--------------------------------------------------------------
Debtor: Transacta Prive Developers, Ltd.
9380 Collins Avenue, #1
Surfside, FL 33154
Bankruptcy Case No.: 12-30635
Chapter 11 Petition Date: August 29, 2012
Court: U.S. Bankruptcy Court
Southern District of Florida (Fort Lauderdale)
Debtor's Counsel: Charles I. Cohen, Esq.
FURR & COHEN
2255 Glades Road, #337W
Boca Raton, FL 33431
Tel: (561) 395-0500
E-mail: pmouton@furrcohen.com
Estimated Assets: $0 to $50,000
Estimated Debts: $50,000,001 to $100,000,000
The petition was signed by Silvia Coltrane, manager, Transacta
Prive Holdings, L.L.C.
Debtor's List of Its 20 Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
------ --------------- ------------
BankUnited, as Assignee -- $15,031,097
7765 NW 148 Street
Miami Lakes, FL 33016
Terra Investments Loan $7,703,815
9380 Collins Avenue, #1
Surfside, FL 33154
New Age Ventures Ltd. Note $3,265,250
c/o Lima & Rios
8360 W. Flagler Street 3200
Miami, FL 33144
Susana Querejazu Loan $2,731,390
2401 Collins Avenue, #1709
Miami Beach, FL 33139
Susana Querejazu Third Party Loan $2,731,390
2401 Collins Avenue, #1709
Miami Beach, FL 33139
Silvia Coltrane Loan $2,540,026
9380 Collins Avenue, #1
Surfside, FL 33154
Transacta Prive Holdings Loan $2,235,930
9380 Collins Avenue, #C-1
Surfside, FL 33140
Alejandro Celentano Loan $2,145,000
c/o Lima & Rios (Luis Rios)
8360 W. Flagler Street, 3200
Miami, FL 33144
Alejandro Celentano Loan $1,702,929
c/o Lima & Rios (Luis Rios)
8360 W. Flagler Street, 3200
Miami, FL 33144
A. Woick, N. de Woick, P.W. Loan $1,668,300
deLarrea
County San Diego, Ruta 25 km 7.5
Manz. 93, Lote 8
Buenos Aires, Argentina
Jose & Maria del Carmen Gacio Loan $1,668,300
16047 Collins Avenue, #2704
Sunny Isles Beach, FL 33160
American Star Corp. Loan $1,662,600
Olleros 1836
1 Piso (1426), Buenos Aires
Argentina
Luis Revuelta Loan $1,659,600
1045 Castile Avenue
Coral Gables, FL 33134
Real Estate Transactions, Inc. Third Party Loan $1,643,987
9380 Collins Avenue
Surfside, FL 33154
New Age Ventures Ltd. Loan $1,391,475
c/o Lima & Rios
8360 W. Flagler Street 3200
Miami, FL 33144
C., V., E & J. Ramirez Third Party Loan $1,101,600
Calle 23, Numero 3-17
Columbia
A. Woick, N. de Woick, P.W. Loan $1,076,890
deLarrea
County San Diego, Ruta 25 km 7.5
Manz. 93, Lote 8
Buenos Aires, Argentina
Jarefox S.A. Loan $898,205
c/o Lima & Rios
8360 W. Flagler Street, 3200
Miami, FL 33144
Liverfell, S.A. Loan $898,205
c/o Lima & Rios
8360 W. Flagler Street, 3200
Miami, FL 33144
Byrnwick S.A. Loan $897,068
VITRO SAB: Bondholders Say Egregious Plan Should be Rejected
------------------------------------------------------------
Bill Rochelle, the bankruptcy columnist for Bloomberg News,
reports that holders of 60% of Vitro SAB's $1.2 billion in
defaulted bonds told a federal appeals court that the Mexican
glass maker won approval of its reorganization plan from a court
in Mexico "through a process that was completely inimical to the
most basic elements of fairness."
According to the report, Vitro appealed to the U.S. Court of
Appeals in New Orleans from a June ruling by a bankruptcy judge in
Dallas who concluded that Vitro's Mexican reorganization plan was
"manifestly contrary" to U.S. law and public policy because it
reduced the liability of subsidiaries on defaulted bonds by 60%
even though the subsidiaries weren't in bankruptcy in the U.S. or
Mexico.
The report relates that in its brief filed last week supporting
the ruling in the bankruptcy court, the bondholders urged the
appeals court to send a signal that "egregious plans" like Vitro's
"will not be enforced." On top of arguments that the Mexican plan
improperly reduced debt owing by subsidiaries not in bankruptcy,
the bondholders contend that their votes against the plan were
swamped by $1.5 billion of votes submitted by Vitro's own
subsidiaries favoring the plan that reduced their own debt. The
$1.5 billion in debt to subsidiaries was created in what the
bondholders say was a $2.7 billion fraudulent transfer kept secret
for most of a year. There were other "extreme voting
irregularities," according to the bondholders. Giving nothing in
return, many Vitro employees received $1,000 bonds so they could
vote for the plan. In addition, Vitro paid a consent fee to
approving creditors, which the bondholders characterize as
"votebuying."
According to the report, the bondholders' brief also argued that
other provisions in the Mexican plan were "patently unjust." The
bondholders pointed to provisions that require creditors to waive
their claims against non-bankrupt subsidiaries as a condition to
receiving distributions in the reorganization. Vitro contended in
its previously filed brief that failing to enforce the Mexican
reorganization would have a "far reaching negative effect" on
relations with Mexico.
Vitro spokesman Roberto Riva Palacio said the company is
"confident in the strength of our arguments on appeal." The
appeal will be argued before the appeals court during the first
week of October.
The appeals court case is Vitro SAB de CV v. Ad Hoc Group of Vitro
Noteholders (In re Vitro SAB de CV), 12-10689, 5th U.S. Circuit
Court of Appeals (New Orleans). The suit in bankruptcy court
where the judge decided not to enforce the Mexican reorganization
in the U.S. is Vitro SAB de CV v. ACP Master Ltd. (In re Vitro SAB
de CV), 12-03027, U.S. Bankruptcy Court, Northern District of
Texas (Dallas). The bondholders' previous appeal is Ad Hoc Group
of Vitro Noteholders v. Vitro SAB de CV (In re Vitro SAB de CV),
11-11239, 5th U.S. Circuit Court of Appeals (New Orleans). The
bondholders' appeal of Chapter 15 recognition in District Court is
Ad Hoc Group of Vitro Noteholders v. Vitro SAB de CV (In re Vitro
SAB de CV), 11-02888, U.S. District Court, Northern District of
Texas (Dallas).
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. But an appellate court in Mexico
reinstated the reorganization in April 2011. Following the
reinstatement, Vitro SAB on April 14, 2011, 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 received sufficient acceptances of its
reorganization by using the US$1.9 billion in debt owing to
subsidiaries to vote down opposition by bondholders. The holders
of US$1.2 billion in defaulted bonds opposed the Mexican
reorganization plan because shareholders could retain ownership
while bondholders aren't being paid in full.
Vitro announced in March 2012 that it has implemented the
reorganization plan approved by a judge in Monterrey, Mexico.
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.
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.
U.S. subsidiaries of Vitro SAB are having their cases converted
to liquidations in Chapter 7, court records in January 2012 show.
In December, the U.S. Trustee in Dallas filed a motion to convert
the subsidiaries' cases to liquidations in Chapter 7. The
Justice Department's bankruptcy watchdog said US$5.1 million in
bills were run up in bankruptcy and hadn't been paid.
On June 13, 2012, U.S. Bankruptcy Judge Harlin "Cooter" Hale in
Dallas entered a ruling that precluded Vitro from enforcing
its Mexican reorganization plan in the U.S. The judge ruled that
the Mexican reorganization was "manifestly contrary" to U.S.
public policy because it bars the bondholders from holding Vitro
operating subsidiaries liable to pay on their guarantees of the
bonds. The Mexican plan reduced the debt of subsidiaries on $1.2
billion in defaulted bonds even though they weren't in bankruptcy
in any country.
TROPICANA ENT: 3rd Cir. Rejects Noteholders' Contribution Claim
---------------------------------------------------------------
The U.S. Court of Appeals for the Third Circuit affirmed a lower
court ruling that denied the request of the Ad Hoc Consortium of
Senior Subordinated Noteholders of Tropicana Entertainment LLC for
reimbursement of $2,320,172 in fees and expenses, as a substantial
contribution to the debtors' estate, pursuant to 11 U.S.C. Sec.
503(b)(3)(D).
On May 6, 2008, the Consortium filed an emergency motion for the
appointment of a Chapter 11 trustee in an effort to remove William
J. Yung III from Tropicana's management and prevent further
adverse regulatory action that might reduce the value of
Tropicana's bankruptcy estates. Several parties, including the
Official Committee of Unsecured Creditors, joined in the Trustee
Motion. The parties resolved the Trustee Motion by way of a
settlement, pursuant to which Mr. Yung agreed to resign from his
management positions. The settlement agreement also included a
clause in which Tropicana acknowledged that expenses incurred by
the Consortium in prosecuting the Trustee Motion "represent a
substantial contribution to the Debtors' estate."
Tropicana and various parties-in-interest negotiated a plan of
reorganization over the next year that was confirmed on May 5,
2009. On July 31, 2009, the Consortium filed an application for
reimbursement of the expenses it incurred in connection with the
Trustee Motion. The Consortium argued that it was entitled to
such reimbursement because the $2,434,474 in legal fees that it
incurred while prosecuting the Trustee Motion represented a
substantial contribution to the debtors' estate.
After hearing oral argument on Sept. 10, 2009, the Bankruptcy
Court denied the Application, finding that while the Trustee
Motion "turned out to have a beneficial effect on the estates,"
the "action was taken largely in the self-interest of the movants
here and would have been taken whether there would have been
estate reimbursement or not." The District Court affirmed.
A copy of the Court's Aug. 31, 2012 Opinion is available at
http://is.gd/nTkc6Rfrom Leagle.com.
About Tropicana Entertainment
Tropicana Entertainment Inc. is a publicly reporting company that,
along with its affiliates, owns or operates nine casinos and
resorts in Indiana, Louisiana, Mississippi, Nevada and New Jersey.
The Company owns approximately 6,000 rooms, 9,000 slot positions
and 250 table games. In addition, the Company owns a development
property in Aruba. The company is based in Las Vegas, Nevada.
Tropicana Entertainment LLC and certain affiliates filed for
Chapter 11 protection on May 5, 2008 (Bankr. D. Del. Case No. 08-
10856). Kirkland & Ellis LLP and Mark D. Collins, Esq., at
Richards Layton & Finger, represent the Debtors in their
restructuring efforts. Their financial advisor is Lazard Ltd.
Their notice, claims, and balloting agent is Kurtzman Carson
Consultants LLC. Epiq Bankruptcy Solutions LLC is the Debtors'
Web site administration agent. AlixPartners LLP is the Debtors'
restructuring advisor. Stroock & Stroock & Lavan LLP and Morris
Nichols Arsht & Tunnell LLP represent the Official Committee of
Unsecured Creditors in this case. Capstone Advisory Group LLC is
financial advisor to the Creditors' Committee.
The OpCo Debtors, a group of Tropicana entities owning casinos and
resorts in Atlantic City, New Jersey and Evansville, Indiana
obtained confirmation from the Bankruptcy Court of a
reorganization plan. On April 29, 2009, non-debtor units of the
OpCo Debtors, designated as the New Jersey Debtors -- Adamar of
New Jersey, Inc., and its affiliate, Manchester Mall, Inc. --
filed for Chapter 11 (Bankr. D. N.J. Lead Case No. 09- 20711) to
effectuate a sale of the Atlantic City Resort and Casino to a
group of Investors-led by Carl Icahn. Judge Judith H. Wizmur
presides over the cases. Manchester Mall is a wholly owned
subsidiary of Adamar that owns and operates certain real property
utilized in the New Jersey Debtors' business operations.
Effective March 8, Tropicana Entertainment successfully emerged
from the Chapter 11 reorganization process as an Carl Icahn-owned
entity.
A group of Tropicana entities, known as the LandCo Debtors, which
own Tropicana casino property in Las Vegas, have obtained approval
of a separate Chapter 11 plan.
Ilana Volkov, Esq., and Michael D. Sirota, Esq., at Cole, Schotz,
Meisel, Forman & Leonard, in Hackensack, New Jersey, represented
the New Jersey Debtors. Kurtzman Carson Consultants LLC acts as
their claims and notice agent. Adamar disclosed $500 million to
$1 billion both in total assets and debts in its petition.
Manchester Mall disclosed $1 million to $10 million in total
assets, and less than $50,000 in total debts in its petition.
Debtors Adamar of New Jersey Inc. and Manchester Mall Inc. have
merged into Adamar of NJ In Liquidation, LLC. The merger and name
change is in accordance with an Amended and Restated Purchase
Agreement, which governs the sale and transfer of the operations
of the Tropicana Casino and Resort - Atlantic City, including
substantially all of the New Jersey Debtors' assets, to Tropicana
Entertainment Inc., Tropicana Atlantic City Corp., and Tropicana
AC Sub Corp., free and clear of any and all liens, claims and
encumbrances.
* 4 Firms Feared Most by In-House Counsel
-----------------------------------------
Carolina Bolado at Bankruptcy Law360 reports that when dealing
with high-stakes litigation, there are four top-notch firms that
in-house counsel dread seeing on the other side of the courtroom,
according to a new survey of corporate counsel.
Boies Schiller & Flexner LLP, Jones Day, Kirkland & Ellis LLP and
Skadden Arps Slate Meagher & Flom LLP ? dubbed the "Fearsome
Foursome" ? are listed as the four most-feared litigation firms in
the BTI Litigation Outlook 2013 report from The BTI Consulting
Group (Wellesley, Mass.), Bankruptcy Law360 discloses.
* S&P's Global Corporate Default Tally Revised to 54 Issuers
-------------------------------------------------------------
There were no global corporate defaults last week. However, S&P
revised the 2012 global corporate default tally to 54 issuers to
account for U.S.-based ATP Oil & Gas Corp.'s default, said an
article published Thursday by Standard & Poor's Global Fixed
Income Research, titled "The Revised 2012 Global Corporate
Default Tally of 54 Issuers Exceeds the 2011 Full-Year Total."
Standard & Poor's Ratings Services downgraded ATP to 'D' from
'CCC' on Aug. 21, 2012, after the company announced that it had
filed for Chapter 11 bankruptcy protection.
By region, 30 of the 54 defaulters were based in the U.S., 14 in
the emerging markets, seven in Europe, and three in the other
developed region (Australia, Canada, Japan, and New Zealand). In
comparison, the 2011 total (through Aug. 29) was 27, with 18 based
in the U.S., two in the emerging markets, two in Europe, and five
in the other developed region. So far this year, bankruptcy
filings accounted for 16 defaults, missed payments for 15;
distressed exchanges for 10, and eight were confidential. The
remaining five entities defaulted for various other reasons. In
2011, 21 issuers defaulted because of missed interest or principal
payments, and 13 because of bankruptcy filings--both of which were
among the top reasons for defaults in 2010. Distressed exchanges-
-another top reason for default in 2010--followed with 11 defaults
in 2011. Of the remaining defaults, two issuers failed to
finalize refinancing on bank loans, two were subject to regulatory
action, one had its banking license revoked by its country's
central bank, one was appointed a receiver, and two were
confidential.
* Upcoming Meetings, Conferences and Seminars
---------------------------------------------
Sept. 13-14, 2012
AMERICAN BANKRUPTCY INSTITUTE
9th Annual Complex Financial Restructuring Program
Four Seasons Hotel, Las Vegas, Nev.
Contact: 1-703-739-0800 ;
http://www.abiworld.org/
Sept. 13-15, 2012
AMERICAN BANKRUPTCY INSTITUTE
20th Annual Southwest Bankruptcy Conference
Four Seasons Hotel, Las Vegas, Nev.
Contact: 1-703-739-0800 ;
http://www.abiworld.org/
Sept. 19-20, 2012
AMERICAN BANKRUPTCY INSTITUTE
38th Annual Lawrence P. King and Charles Seligson
Workshop on Bankruptcy & Business Reorganizations
New York University School of Law, New York, N.Y.
Contact: 1-703-739-0800 ;
http://www.abiworld.org/
Oct. 4, 2012
AMERICAN BANKRUPTCY INSTITUTE
Nuts & Bolts: Bankruptcy Fundamentals for
Young and New Practitioners
Charles Evans Whittaker Courthouse, Kansas City, Mo.
Contact: 1-703-739-0800 ;
http://www.abiworld.org/
Oct. 5, 2012
AMERICAN BANKRUPTCY INSTITUTE
32nd Annual Midwestern Bankruptcy Institute & Consumer Forum
Kansas City Marriott Downtown, Kansas City, Mo.
Contact: 1-703-739-0800 ;
http://www.abiworld.org/
Oct. 5, 2012
AMERICAN BANKRUPTCY INSTITUTE
Bankruptcy 2012: Views from the Bench
Georgetown University Law Center, Washington, D.C.
Contact: 1-703-739-0800 ;
http://www.abiworld.org/
Oct. 8, 2012
AMERICAN BANKRUPTCY INSTITUTE
5th Annual Chicago Consumer Bankruptcy Conference
University of Chicago Gleacher Center, Chicago, Ill.
Contact: 1-703-739-0800 ;
http://www.abiworld.org/
Oct. 18, 2012
AMERICAN BANKRUPTCY INSTITUTE
International Insolvency & Restructuring Symposium
Parco dei Principi Grand Hotel & Spa, Rome, Italy
Contact: 1-703-739-0800 ;
http://www.abiworld.org/
Oct. 26, 2012
AMERICAN BANKRUPTCY INSTITUTE
NCBJ/ABI Educational Program
San Diego Marriott Marquis and Marina, San Diego, Calif.
Contact: 1-703-739-0800 ;
http://www.abiworld.org/
Nov. 1-2, 2012
AMERICAN BANKRUPTCY INSTITUTE
Corporate Restructuring Competition
Wharton University of Pennsylvania, Philadelphia, Pa.
Contact: 1-703-739-0800 ;
http://www.abiworld.org/
Nov. 1-3, 2012
TURNAROUND MANAGEMENT ASSOCIATION
TMA Annual Convention
Westin Copley Place, Boston, Mass.
Contact: http://www.turnaround.org/
Nov. 7, 2012
AMERICAN BANKRUPTCY INSTITUTE
U.S./Mexico Restructuring Symposium
The Four Seasons, Mexico City, D.F.
Contact: 1-703-739-0800 ;
http://www.abiworld.org/
Nov. 12, 2012
AMERICAN BANKRUPTCY INSTITUTE
Detroit Consumer Bankruptcy Conference
MGM Grand, Detroit, Mich.
Contact: 1-703-739-0800 ;
http://www.abiworld.org/
Nov. 26, 2012
BEARD GROUP, INC.
19th Annual Distressed Investing Conference
The Helmsley Park Lane Hotel, New York, N.Y.
Contact: 240-629-3300 or
http://bankrupt.com/
Nov. 29-30, 2012
MID-SOUTH COMMERCIAL LAW INSTITUTE
33rd Annual Bankruptcy & Commercial Law Seminar
Nashville Marriott at Vanderbilt, Nashville, Tenn.
Contact: 1-703-739-0800 ;
http://www.abiworld.org/
Nov. 29 - Dec. 1, 2012
AMERICAN BANKRUPTCY INSTITUTE
Winter Leadership Conference
JW Marriott Starr Pass Resort & Spa, Tucson, Ariz.
Contact: 1-703-739-0800 ;
http://www.abiworld.org/
Dec. 4-8, 2012
AMERICAN BANKRUPTCY INSTITUTE
ABI/SJUSL Mediation Training Symposium
St. John's University, Queens, N.Y.
Contact: 1-703-739-0800 ;
http://www.abiworld.org/
Jan. 24-25, 2013
AMERICAN BANKRUPTCY INSTITUTE
Rocky Mountain Bankruptcy Conference
Four Seasons Hotel Denver, Denver, Colo.
Contact: 1-703-739-0800 ;
http://www.abiworld.org/
Feb. 7-9, 2013
AMERICAN BANKRUPTCY INSTITUTE
Caribbean Involvency Symposium
Eden Roc Renaissance, Miami Beach, Fla.
Contact: 1-703-739-0800 ;
http://www.abiworld.org/
Feb. 17-19, 2013
AMERICAN BANKRUPTCY INSTITUTE
Advanced Consumer Bankruptcy Practice Institute
Charles Evans Whittaker Courthouse, Kansas City, Mo.
Contact: 1-703-739-0800 ;
http://www.abiworld.org/
Feb. 20-22, 2013
AMERICAN BANKRUPTCY INSTITUTE
VALCON
Four Seasons Las Vegas, Las Vegas, Nev.
Contact: 1-703-739-0800 ;
http://www.abiworld.org/
Apr. 10-12, 2013
TURNAROUND MANAGEMENT ASSOCIATION
TMA Spring Conference
JW Marriott Chicago, Chicago, Ill.
Contact: http://www.turnaround.org/
Apr. 18-21, 2013
AMERICAN BANKRUPTCY INSTITUTE
Annual Spring Meeting
Gaylord National Resort & Convention Center,
National Harbor, Md.
Contact: 1-703-739-0800 ;
http://www.abiworld.org/
June 13-16, 2013
AMERICAN BANKRUPTCY INSTITUTE
Central States Bankruptcy Workshop
Grand Traverse Resort, Traverse City, Mich.
Contact: 1-703-739-0800 ;
http://www.abiworld.org/
July 11-13, 2013
AMERICAN BANKRUPTCY INSTITUTE
Northeast Bankruptcy Conference
Hyatt Regency Newport, Newport, R.I.
Contact: 1-703-739-0800 ;
http://www.abiworld.org/
July 18-21, 2013
AMERICAN BANKRUPTCY INSTITUTE
Southeast Bankruptcy Workshop
The Ritz-Carlton Amelia Island, Amelia Island, Fla.
Contact: 1-703-739-0800 ;
http://www.abiworld.org/
Aug. 8-10, 2013
AMERICAN BANKRUPTCY INSTITUTE
Mid-Atlantic Bankruptcy Workshop
Hotel Hershey, Hershey, Pa.
Contact: 1-703-739-0800 ;
http://www.abiworld.org/
Aug. 22-24, 2013
AMERICAN BANKRUPTCY INSTITUTE
Southwest Bankruptcy Conference
Hyatt Regency Lake Tahoe, Incline Village, Nev.
Contact: 1-703-739-0800 ;
http://www.abiworld.org/
Oct. 3-5, 2013
TURNAROUND MANAGEMENT ASSOCIATION
TMA Annual Convention
Marriott Wardman Park, Washington, D.C.
Contact: http://www.turnaround.org/
Nov. 1, 2013
AMERICAN BANKRUPTCY INSTITUTE
NCBJ/ABI Educational Program
Atlanta Marriott Marquis, Atlanta, Ga.
Contact: 1-703-739-0800 ;
http://www.abiworld.org/
Dec. 2, 2013
BEARD GROUP, INC.
19th Annual Distressed Investing Conference
The Helmsley Park Lane Hotel, New York, N.Y.
Contact: 240-629-3300 or
http://bankrupt.com/
Dec. 5-7, 2013
AMERICAN BANKRUPTCY INSTITUTE
Winter Leadership Conference
Terranea Resort, Rancho Palos Verdes, Calif.
Contact: 1-703-739-0800 ;
http://www.abiworld.org/
The Meetings, Conferences and Seminars column appears in the
Troubled Company Reporter each Wednesday. Submissions via
e-mail to conferences@bankrupt.com are encouraged.
*********
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, Ivy B. Magdadaro, Carlo
Fernandez, Christopher G. Patalinghug, and Peter A. Chapman,
Editors.
Copyright 2012. All rights reserved. ISSN: 1520-9474.
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