/raid1/www/Hosts/bankrupt/TCR_Public/121120.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
Tuesday, November 20, 2012, Vol. 16, No. 323
Headlines
6760 PARTNERS: Voluntary Chapter 11 Case Summary
A123 SYSTEMS: Got $1 Million from U.S. Govt. on Day of Bankruptcy
ABBEY DESIGN: Files for Chapter 7 Bankruptcy Protection
ACCESS PHARMACEUTICALS: Incurs $15.3 Million Net Loss in Q3
ACCREDITED MEMBERS: Incurs $393,500 Net Loss in Third Quarter
ADI SHUTTLE: Case Summary & 20 Largest Unsecured Creditors
ALL AMERICAN PET: Incurs $754,900 Net Loss in Third Quarter
AMARU INC: Posts $683,000 Net Income in Third Quarter
AMERICAN AIRLINES: Pilots to Vote on Ratifying New Contract
AMERICAN ELEVATOR: Voluntary Chapter 11 Case Summary
AMERICAN SUZUKI: Nails Financing for Dealers, Customers
ANDERSON HOMES: Queenscapes Must Return $13,610
AT HOME MEDICAL: Case Summary & 20 Largest Unsecured Creditors
AXIANT LLC: Chapter 7 Trustee's Lawsuit Against Genesis Dismissed
AZURE SEAS: Voluntary Chapter 11 Case Summary
BERRY PLASTICS: S&P Raises CCR to B on Improved Financial Profile
BIOZONE PHARMACEUTICALS: Incurs $98,700 Net Loss in 3rd Quarter
BONDS.COM GROUP: Incurs $2.4 Million Net Loss in Third Quarter
BRIGHT HORIZONS: S&P Puts 'B' CCR on Watch Positive on Planned IPO
CAPITOL BANCORP: Must Address Capital Woes by December 20
CAPITAL POWER: S&P Cuts Global Preferred Stock Rating to 'BB'
CELOTEX CORP: 11th Cir. Rules PD Advisory Committee Fees
CERVANTES ORCHARDS: Creditor Did Not Violate Single-Action Rule
CHARLES ANTHONY: Voluntary Chapter 11 Case Summary
CHINA DU KANG: Delays Third Quarter Form 10-Q for Review
CHINA EXECUTIVE: Delays Form 10-Q for Third Quarter
CICERO INC: CEO & CFO to Get 1.5MM Common Shares Upon Termination
CITRUS VALLEY: S&P Revises Outlook on 'BB+' SPUR on Certificates
CLARE OAKS: Court Confirms Bondholders' Third Amended Plan
CLEAR CHANNEL: Bank Debt Trades at 19% Off in Secondary Market
COLONIAL BANCGROUP: FDIC Sues PwC, Crowe Horwath Over Collapse
COMMERCETEL CORP: Incurs $2.3 Million Net Loss in Third Quarter
COMPREHENSIVE CARE: Posts $1 Million Net Income in Third Quarter
CORD BLOOD: Incurs $1 Million Net Loss in Third Quarter
CORELOGIC INC: S&P Revises Outlook on 'BB' CCR on Stable Earning
CREEKSIDE REALTY: Case Summary & 3 Unsecured Creditors
CREATIVE VISTAS: Incurs $214,000 Net Loss in Third Quarter
CUBIC ENERGY: Incurs $1.7 Million Net Loss in Sept. 30 Quarter
CUMULUS MEDIA: Moody's Affirms 'B1' CFR; Outlook Negative
DELTATHREE INC: Incurs $401,000 Net Loss in Third Quarter
DICKINSON THEATRES: Blue Springs 8 Theatre Has New Operator
DONNA JEAN: Case Summary & 3 Unsecured Creditors
EASTMAN KODAK: District Judge Dismisses Shareholders' Lawsuit
EASTMAN KODAK: 2nd Lien Lenders Oppose Quick Hearing on New Loan
EASTMAN KODAK: Reaches Settlement With CVS Pharmacy
EDISON MISSION: Has 30 Days to Work Out Deal With Bondholders
EDISON MISSION: S&P Cuts CCR to 'D' on Missed Interest Payment
ELJEN CORP.: Voluntary Chapter 11 Case Summary
EPICEPT CORP: Incurs $1.1 Million Net Loss in Third Quarter
FELIX'S RESTAURANT: Price Rises to $2.1 Million at Auction
GCI INC: S&P Revises Outlook on 'BB-' Corp. Credit Rating to Neg
FLORIDA GAMING: Incurs $4.6 Million Net Loss in Third Quarter
GK MANAGEMENT: Case Summary & 20 Unsecured Creditors
FUSION TELECOMMUNICATIONS: Incurs $1.6MM Net Loss in 3rd Quarter
GNP RLY: Court Approves Asset Sale to Former CFO
GRAYMARK HEALTHCARE: Incurs $2.3 Million Net Loss in 3rd Quarter
GREENSHIFT CORP: Delays Form 10-Q for Third Quarter
GRUBB & ELLIS: Files Liquidating Plan With Less Than 5%
HAWKER BEECHCRAFT: Dumping Warranty Coverage on Jet Aircraft
HELICOS BIOSCIENCES: Financial Woes Cue Chapter 11 Filing
HELICOS BIOSCIENCES: Case Summary & 20 Largest Unsecured Creditors
HOMER CITY: Moody's Withdraws 'Caa1' Rating After Bankruptcy
HOSTESS BRANDS: Liquidation to Last One Year, Cost Millions
IDO SECURITY: Incurs $1.5 Million Net Loss in Third Quarter
INFINITY ENERGY: Delays Form 10-Q for Third Quarter
INTEGRATED BIOPHARMA: Delays Form 10-Q for Sept. 30 Quarter
INFUSYSTEM HOLDINGS: Posts $33,000 Net Income in Third Quarter
INTERMETRO COMMUNICATIONS: Reports $271,000 Net Income in Q3
INTERLEUKIN GENETICS: Incurs $1.3-Mil. Net Loss in 3rd Quarter
INTERNATIONAL RECTIFIER: S&P Alters Outlook on BB- CCR to Positive
JACOBS ENTERTAINMENT: S&P Ups CCR to 'B' on Completed Refinancing
JSP INVESTMENTS: 124 Residential Properties to Be Sold Dec. 4
KENT SQUARE: Case Summary & 2 Unsecured Creditors
L'ALLIANCE FRANCAISE: Case Summary & Unsecured Creditor
LEHMAN BROTHERS: Brokerage Trustee Settles With Citigroup
LEHMAN BROTHERS: Barclays Beats Trustee Over Length of Brief
LEHMAN BROTHERS: Trustee, BNY Mellon Ink Agreement to Lift Stay
LEHMAN BROTHERS: Trustee, Deutsche Bank Ink Deal to Settle Claims
LEHMAN BROTHERS: 100% Recovery for CDO Losses After Win by PPB
LITHIUM TECHNOLOGY: Delays Form 10-Q for Third Quarter
LMR LLC: Cash-Strapped Hotel Operator Files Bankruptcy
LODGE LLC: Voluntary Chapter 11 Case Summary
LONGVIEW POWER: Bank Debt Trades at 17% Off in Secondary Market
LONGVIEW POWER: Bank Debt Trades at 14% Off in Secondary Market
MARINA BIOTECH: Has Worldwide License Agreement with Mosanto
MARINA MILE: Release Doesn't Bar Fee Disgorgement by Professional
METALDYNE LLC: Moody's Assigns 'B1' CFR; Outlook Stable
MIRADA DEL LAGO: Case Summary & 2 Unsecured Creditors
MJM I: Voluntary Chapter 11 Case Summary
NAUTICA LAKES: Response Deadline in DSC of Newark Dispute Extended
NEIMAN MARCUS: Moody's Rates $500-Mil. Add-On Term Loan 'B2'
NELA ENTERPRISES: Voluntary Chapter 11 Case Summary
NEONODE INC: Incurs $2.1 Million Net Loss in Third Quarter
NET TALK.COM: Incurs $2 Million Net Loss in Sept. 30 Quarter
NEVADA CANCER: To Close Facility on Dec. 31
NEDAK ETHANOL: Delays Q3 Form 10-Q for Lack of Resources
NEW RIVER DRY: 11th Cir. Affirms Ruling on Fee Disgorgement
ORANGE COUNTY NURSERY: Minority Has Subordinated Claim, Not Equity
OVERLAND STORAGE: Incurs $4.8 Million Net Loss in Q1 Fiscal 2013
PATRIOT COAL: To Cease All Large-Scale Mountaintop-Removal Mining
PENNSBURY VILLAGES: Voluntary Chapter 11 Case Summary
PETTERS GROUP: Trustee Sues M&I Bank for Abetting Fraud
PGI INCORPORATED: Incurs $1.5 Million Net Loss in Third Quarter
PHARMACEUTICAL RESEARCH: Moody's Assigns 'B2' CFR; Outlook Stable
PINNACLE AIRLINES: Plan Filing Deadline Extended to Dec. 30
PINNACLE AIRLINES: Judge Rules Pilots Must Give Specified Cuts
PINNACLE AIRLINE: Court Keeps Ruling on Pilots Contract Under Seal
PLC SYSTEMS: Incurs $3.2 Million Net Loss in Third Quarter
PROVIDENT COMMUNITY: Files Form 10-Q, Incurs $12K Net Loss in Q3
QBEX ELECTRONICS: Case Summary & 20 Largest Unsecured Creditors
REFCO INC: Ex-Mayer Brown Lawyer Convicted of Criminal Charges
RELIANCE INTERMEDIATE: S&P Gives 'BB+' Corp. Credit Rating
REVEL ENTERTAINMENT: Bank Debt Trades at 51% Off
SEARCHMEDIA HOLDINGS: To Hold Annual General Meeting on Dec. 14
SANUWAVE HEALTH: Incurs $1.4 Million Net Loss in Third Quarter
SEMGROUP LP: Investors May Assert Individual Claims vs. Officers
SHELL'S DISPOSAL: 3rd Cir. Affirms Accord With Lancaster
SPANISH BROADCASTING: Files Form 10-Q, Incurs $2.4MM Loss in Q3
SWIFT ENERGY: S&P Retains 'B+' Rating on Senior Unsecured Debt
TALON INTERNATIONAL: Posts $186,800 Net Income in 3rd Quarter
TARGETED MEDICAL: Incurs $1.2 Million Comprehensive Loss in Q3
TCI COURTYARD: Case Summary & 7 Unsecured Creditors
TELKONET INC: Reports $513,000 Net Income in Third Quarter
THERMOENERGY CORP: Incurs $1.8 Million Net Loss in Third Quarter
THOMAS HELMKAMPF: Files for Chapter 11 Bankruptcy Protection
TOM MARTINO: May Transfer Ownership of Parking Lots
TRANS ENERGY: Incurs $3.5 Million Net Loss in Third Quarter
TRANS-LUX CORP: Posts $196,000 Net Income in Third Quarter
TRENT GROUP: Case Summary & 20 Largest Unsecured Creditors
TRIAD PHARMACEUTICALS: Case Summary & 4 Unsecured Creditors
TRIBUNE CO: To Name Peter Liguori as New CEO; Wins FCC Approval
TRIBUNE CO: Bank Debt Trades at 24% Off in Secondary Market
TRIBUNE CO: Receives FCC Approvals to Consummate Chapter 11 Plan
TRIBUNE CO: To Name TV Veteran Peter Liguori as New CEO--
TRIBUNE CO: Panel Seeks Revision of Document Depository Order
TXU CORP: Bank Debt Trades at 35% Off in Secondary Market
UNITED BANCSHARES: Incurs $407,000 Net Loss in Third Quarter
UNIVERSAL BIOENERGY: Delays Form 10-Q for Third Quarter
UNIVERSITY GENERAL: To Report Revised Q2 Net Income of $4.7-Mil.
UPPER CRUST: Pizza Chain Closure Left 140 Workers Jobless
VESTA CORP: Moody's Assigns 'B2' CFR/PDR; Outlook Stable
VESTA CORP: S&P Assigns Preliminary 'B' Corp. Credit Rating
VANITY EVENTS: Delays 3rd Quarter Form 10-Q Over Hurricane Sandy
VERTICAL COMPUTER: Delays Form 10-Q for Third Quarter
VIASPACE INC: Delays 3rd Quarter Form 10-Q for Recapitalization
W.R. GRACE: $2 Million Dairyland Settlement Approved
W.R. GRACE: SC&H Expense Cap Increased to $2.0 Million
W.R. GRACE: Wins OK to Expand Scope of Baker Employment
W.R. GRACE: Former Solutia Chief Jeff Quinn Joins Board
WASHINGTON HOSPITALITY: Case Summary & 4 Unsecured Creditors
YOUGO LLC: Voluntary Chapter 11 Case Summary
* Georgia Bank Failure Brings Year's Total to 50
* Large Companies With Insolvent Balance Sheets
*********
6760 PARTNERS: Voluntary Chapter 11 Case Summary
------------------------------------------------
Debtor: 6760 Partners, LLC
P.O. Box 12376
Tempe, AZ 85284
Bankruptcy Case No.: 12-24890
Chapter 11 Petition Date: November 16, 2012
Court: United States Bankruptcy Court
District of Arizona (Phoenix)
Judge: George B. Nielsen Jr.
Debtor's Counsel: Don C. Fletcher, Esq.
LAKE AND COBB PLC
1095 West Rio Salado Parkway #206
Tempe, AZ 85281
Tel: (602) 523-3000
Fax: (602) 523-3001
E-mail: dfletcher@lakeandcobb.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 Timothy Benson, managing member.
A123 SYSTEMS: Got $1 Million from U.S. Govt. on Day of Bankruptcy
------------------------------------------------------------------
Bill Rochelle, the bankruptcy columnist for Bloomberg News,
reports that A123 Systems Inc. received a $947,000 payment from
the U.S. government the same day the developer of automotive
lithium-ion batteries filed for bankruptcy protection. The
payment was part of the $115.8 million the company received toward
a $249 million government grant for building a battery-making
facility.
A123's business will be sold at auction on Dec. 6. The first bid
will come from Johnson Controls Inc. China's Wanxiang Group Corp.
is expected to be among competing bidders.
About A123 Systems
Based in Waltham, Massachusetts, A123 Systems Inc. designs,
develops, manufactures and sells advanced rechargeable lithium-ion
batteries and battery systems and provides research and
development services to government agencies and commercial
customers.
A123 is the recipient of a $249 million federal grant from the
Obama administration. Pre-bankruptcy, A123 had an agreement to
sell an 80% stake to Chinese auto-parts maker Wanxiang Group Corp.
U.S. lawmakers opposed the deal over concerns on the transfer of
American taxpayer dollars and technology to China.
A123 didn't make a $2.7 million payment due Oct. 15 on $143.75
million in 3.75% convertible subordinated notes due 2016.
A123 and U.S. affiliates, A123 Securities Corporation and Grid
Storage Holdings LLC, sought Chapter 11 bankruptcy protection
(Bankr. D. Del. Case Nos. 12-12859 to 12-12861) on Oct. 16, 2012,
with a deal to sell its auto-business assets to Johnson Controls
Inc. The deal with JCI is valued at $125 million, and subject to
higher offers at a bankruptcy auction.
A123 disclosed assets of $459.8 million and liabilities totaling
$376 million. Debt includes $143.8 million on 3.75% convertible
subordinated notes. Other liabilities include $22.5 million on a
bridge loan owing to Wanziang. About $33 million is owed to trade
suppliers.
The Hon. Kevin J. Carey presides over the case. Lawyers at
Richards, Layton & Finger, P.A., and Latham & Watkins LLP serve as
the Debtors' counsel. Lazard Freres & Co. LLC acts as the
Debtors' financial advisors, while Alvarez & Marsal serves as
restructuring advisors. Logan & Company Inc. serves as the
Debtors' claims and noticing agent. Wanxiang America Corporation
and Wanxiang Clean Energy USA Corp. are represented in the case by
lawyers at Young Conaway Stargatt & Taylor, LLP, and Sidley Austin
LLP. JCI is represented in the case by Josh Feltman, Esq., at
Wachtell Lipton Rosen & Katz LLP.
An official committee of unsecured creditors has been appointed in
the case. The Committee is represented by lawyers at Brown
Rudnick LLP and Saul Ewing LLP.
ABBEY DESIGN: Files for Chapter 7 Bankruptcy Protection
-------------------------------------------------------
The Business Journal reports that Abbey Design & Flooring Center
has filed for Chapter 7 bankruptcy protection, claiming nearly
$3.5 million in outstanding debt.
According to the report, the business is owned by Gary and
Glennyce Cropper. The business previously filed for Chapter 11
bankruptcy protection in 2001, according to court records.
According to the Chapter 7 petition filed in federal court Nov. 7,
the Croppers reported $433,950 in assets. They owe creditors more
than $1.1 million in secured claims and more than $2.3 million in
unsecured claims.
The report says the filing comes on the heals of numerous debt
claims by customers and contractors of the North Fresno business,
which suddenly closed its doors a couple of weeks ago.
The report notes the Better Business Bureau serving Central
California has received a total of 25 complaints against the
company with a combined estimated value of $288,947.
The report, citing court documents, says creditors holding claims
against Abbey Design & Flooring include: Vericrest Financial in
Dallas, owed $614,822 for a deed of trust on a residence; the City
of Fresno, owed more than $9,000 in business debt; Fresno resident
Rebecca Pafford, owed $80,000 in business debt; Fresno resident
Herman Toews, owed $220,000 in business debt, Westamerica Bank,
owed $750,000 for personal guarantees and a second deed of trust
on a residence and Aivazian Family, LLC, owed $283,693 for a
personal guarantee.
According to the report, the company also owes hundreds of
thousands of dollars to the Internal Revenue Service.
ACCESS PHARMACEUTICALS: Incurs $15.3 Million Net Loss in Q3
-----------------------------------------------------------
Access Pharmaceuticals, Inc., filed with the U.S. Securities and
Exchange Commission its quarterly report on Form 10-Q disclosing
a net loss allocable to common stockholders of $15.31 million on
$871,000 of total revenues for the three months ended Sept. 30,
2012, compared with a net loss allocable to common stockholders of
$97,000 on $1.04 million of total revenues for the same period a
year ago.
For the nine months ended Sept. 30, 2012, the Company reported a
net loss allocable to common stockholders of $31.68 million on
$3.39 million of total revenues, compared with a net loss
allocable to common stockholders of $4.14 million on $1.34 million
of total revenues for the same period during the prior year.
The Company's balance sheet at Sept. 30, 2012, showed
$1.23 million in total assets, $47.52 million in total liabilities
and a $46.28 million total stockholders' deficit.
A copy of the Form 10-Q is available for free at:
http://is.gd/7ehS2r
About Access Pharmaceuticals
Access Pharmaceuticals, Inc., develops pharmaceutical products
primarily based upon its nano-polymer chemistry technologies and
other drug delivery technologies. The Company currently has one
approved product, one product candidate at Phase 3 of clinical
development, three product candidates in Phase 2 of clinical
development and other product candidates in pre-clinical
development.
After auditing the 2011 results, Whitley Penn LLP, in Dallas
Texas, expressed substantial doubt about the Company's ability to
continue as a going concern. The independent auditors noted that
the Company has had recurring losses from operations, negative
cash flows from operating activities and has an accumulated
deficit.
ACCREDITED MEMBERS: Incurs $393,500 Net Loss in Third Quarter
-------------------------------------------------------------
Hangover Joe's Holding Corporation, formerly known as Accredited
Members Holding Corporation, filed with the U.S. Securities and
Exchange Commission its quarterly report on Form 10-Q disclosing
a net loss of $393,553 on $386,560 of net sales for the three
months ended Sept. 30, 2012, compared with a net loss of $33,871
on $74,742 of net sales for the same period during the prior year.
For the nine months ended Sept. 30, 2012, the Company reported a
net loss of $943,023 on $736,081 of net sales, compared with a net
loss of $157,676 on $118,209 of net sales for the same period
during the preceding year.
The Company's balance sheet at Sept. 30, 2012, showed $357,137 in
total assets, $690,355 in total liabilities and a $333,218 total
stockholders' deficit.
A copy of the Form 10-Q is available for free at:
http://is.gd/D2izST
About Accredited Members
Colorado Springs, Colo.-based Accredited Members Holding
Corporation currently provides various services and products both
directly and through its subsidiary corporations Accredited
Members, Inc. ("AMI"), and AMHC Managed Services ("AMMS"), which
provides management services to third parties including services
typically provided by executive level personnel on a fix-contract
basis. Through August 2011, the Company provided services through
its subsidiary World Wide Premium Packers, Inc. ("WWPP").
As reported in the TCR on April 9, 2012, GHP Horwath, P.C., in
Denver, Colorado, expressed substantial doubt about Accredited
Members' ability to continue as a going concern, following the
Company's results for the fiscal year ended Dec. 31, 2011. The
independent auditors noted that the Company reported a net loss of
approximately $3,461,000 and used net cash in operating activities
of approximately $2,125,000 in 2011, and has an accumulated
deficit of approximately $7,570,000 at Dec. 31, 2011.
ADI SHUTTLE: Case Summary & 20 Largest Unsecured Creditors
----------------------------------------------------------
Debtor: ADI Shuttle Group LLC
6544 Highland Road
Waterford, MI 48327
Bankruptcy Case No.: 12-65219
Chapter 11 Petition Date: November 16, 2012
Court: United States Bankruptcy Court
Eastern District of Michigan (Detroit)
Judge: Phillip J. Shefferly
Debtor's Counsel: Jason W. Bank, Esq.
Patrick Warren Hunt, Esq.
KERR, RUSSELL AND WEBER, PLC
500 Woodward Avenue, Suite 2500
Detroit, MI 48226
Tel: (313) 961-0200
Fax: (313) 961-0388
E-mail: jwb@krwlaw.com
pwh@krwlaw.com
Estimated Assets: $0 to $50,000
Estimated Debts: $1,000,001 to $10,000,000
A copy of the Company's list of its 20 largest unsecured creditors
is available for free at http://bankrupt.com/misc/mieb12-65219.pdf
The petition was signed by Scott Beale, president and managing
member.
ALL AMERICAN PET: Incurs $754,900 Net Loss in Third Quarter
-----------------------------------------------------------
All American Pet Company, Inc., filed with the U.S. Securities and
Exchange Commission its quarterly report on Form 10-Q disclosing a
net loss of $754,916 on $5,955 of net sales for the three months
ended Sept. 30, 2012, compared with a net loss of $417,677 on $0
of net sales for the same period during the prior year.
For the nine months ended Sept. 30, 2012, the Company reported a
net loss of $1.60 million on $16,885 of net sales, compared with a
net loss of $2.10 million on $82,153 of net sales for the same
period during the prior year.
The Company's balance sheet at Sept. 30, 2012, showed $676,448 in
total assets, $4.91 million in total liabilities and a
$4.24 million total stockholders' deficit.
A copy of the Form 10-Q is available for free at:
http://is.gd/39qO19
About All American Pet
All American Pet Company, Inc., a reporting public company with
executive offices in Beverly Hills, California, was incorporated
on Feb. 13, 2003. The Company produces, markets, and sells super
premium dog food under the brand names Grrr-nola(R)Natural Dog
Food and BowWow Breakfast(R) Heart Healthy Dog Food.
De Joya Griffith, LLC, in Henderson, Nevada, issued a "going
concern" qualification on the consolidated financial statements
for the year ended Dec. 31, 2011. The independent auditors noted
that the Company has suffered losses from operations, which raise
substantial doubt about its ability to continue as a going
concern.
AMARU INC: Posts $683,000 Net Income in Third Quarter
-----------------------------------------------------
Amaru, Inc., filed with the U.S. Securities and Exchange
Commission its quarterly report on Form 10-Q disclosing net income
including noncontrolling interest of $683,062 on $3,530 of total
revenue for the three months ended Sept. 30, 2012, compared with a
net loss including noncontrolling interest of $341,977 on $103 of
total revenue for the same period during the prior year.
For the nine months ended Sept. 30, 2012, the Company reported net
income including noncontrolling interest of $539,805 on $6,643 of
total revenue, compared with a net loss including noncontrolling
interest of $1.25 million on $4,342 of total revenue for the same
period a year ago.
The Company's balance sheet at Sept. 30, 2012, showed $3.28
million in total assets, $3.08 million in total liabilities and
$195,261 in total stockholders' equity.
A copy of the Form 10-Q is available for free at:
http://is.gd/YUNuc9
About Amaru Inc.
Singapore-based Amaru, Inc., a Nevada corporation, is in the
business of broadband entertainment-on-demand, streaming via
computers, television sets, PDAs (Personal Digital Assistant) and
the provision of broadband services. The Company's business
includes channel and program sponsorship (advertising and
branding); online subscriptions, channel/portal development
(digital programming services); content aggregation and
syndication, broadband consulting services, broadband hosting and
streaming services and E-commerce.
After auditing the 2011 results, Wilson Morgan, LLP, in Irvine,
California, noted that the Company has sustained accumulated
losses from operations totalling $40.7 million at Dec. 31, 2011.
This condition and the Company's lack of significant revenue,
raise substantial doubt about the Company's ability to continue as
going concern, the auditors said.
Amaru reported a net loss from operations of $1.37 million in
2011, compared with a net loss from operations of $1.50 million in
2010.
AMERICAN AIRLINES: Pilots to Vote on Ratifying New Contract
-----------------------------------------------------------
Bill Rochelle, the bankruptcy columnist for Bloomberg News,
reports that pilots at American Airlines Inc. will vote from
Nov. 23 until Dec. 2 on ratifying a new contract. The contract
raises pay while requiring pilots to fly more hours a month. The
union will receive 13.5% of the new stock in return for
concessions while the pilots will pay more for benefits.
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 ELEVATOR: Voluntary Chapter 11 Case Summary
----------------------------------------------------
Debtor: American Elevator Corporation
P.O. Box 488
Bellevue, WA 98009
Bankruptcy Case No.: 12-21561
Chapter 11 Petition Date: November 16, 2012
Court: United States Bankruptcy Court
Western District of Washington (Seattle)
Judge: Karen A. Overstreet
Debtor's Counsel: James E. Dickmeyer, Esq.
JAMES E. DICKMEYER, PC
121 Third Avenue
P.O. Box 908
Kirkland, WA 98083-0908
Tel: (425) 889-2324
E-mail: jim@jdlaw.net
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 Larry D. Bentley, president.
AMERICAN SUZUKI: Nails Financing for Dealers, Customers
-------------------------------------------------------
Bill Rochelle, the bankruptcy columnist for Bloomberg News,
reports that American Suzuki Motor Corp. received emergency
approval from the bankruptcy judge on Nov. 16 allowing Ally
Financial Inc. to continue financing dealers' inventory and
customers' purchases. The company said in a statement that the
lending authorization enables Suzuki dealers to continue offering
zero percent financing for eligible purchasers. Dealers had about
1,700 cars in inventory on Nov. 7, the company said.
American Suzuki
Established in 1986 American Suzuki Motor Corporation is the sole
distributor of Suzuki automobiles and vehicles in the United
States. American Suzuki wholesales virtually all of its inventory
through a network of independently owned and unaffiliated
dealerships located throughout the continental United States.
The dealers then market and sell the Suzuki Products to retail
customers. Suzuki Motor Corp., the 100% interest holder in the
Debtor, manufacturers substantially all of the Suzuki products.
American Suzuki has 295 employees.
There are approximately 220 automotive dealerships, over 900
motorcycle/ATV dealerships, and over 780 outboard marine
dealerships.
American Suzuki filed a Chapter 11 petition (Bankr. C.D. Calif.
Case No. 12-22808) on Nov. 5, 2012, to sell the business to SMC,
absent higher and better offers.
SMC is not included in the Chapter 11 filing.
ASMC's legal advisor on the restructuring is Pachulski Stang Ziehl
& Jones LLP, and its financial advisor is FTI Consulting, Inc.
Nelson Mullins Riley & Scarborough LLP is serving as special
counsel on automobile dealer and industry issues. Further, ASMC
has proposed the appointment of Freddie Reiss, Senior Managing
Director at FTI Consulting, as Chief Restructuring Officer, and
has also added two independent Board members to assist it through
this period. Rust Consulting Omni Bankruptcy, a division of Rust
Consulting, Inc., is the claims and notice agent.
The Debtor has retained Imperial Capital, LLC as investment banker
and will proceed with a thorough marketing process over the next
60 to 90 days.
SMC is represented by lawyers at Klee, Tuchin, Bogdanoff & Stern
LLP.
American Suzuki filed a proposed reorganization plan where
everything aside from the auto distribution business would be sold
to the parent.
ANDERSON HOMES: Queenscapes Must Return $13,610
-----------------------------------------------
Bankruptcy Judge Stephani W. Humrickhouse ruled that the
$13,610.38 portion of the $20,161.38 Queenscapes, Inc., received
from Anderson Homes Inc., or its debtor-affiliates during the 90-
day period prior to the bankruptcy filing constitutes preferential
payment and should be avoided.
The parties have stipulated that the defendant provided new value
within the statutory terms of 11 U.S.C. Sec. 547(c)(4) in the
total amount of $6,551. The parties disagree as to whether all or
some of the remaining $13,610.38 in transfers qualify for the
ordinary course of business defense under 11 U.S.C. Sec.
547(c)(2). In its order, the Court said the defendant has not
established that the transfers were made within the ordinary
business terms.
The lawsuit is, RICHARD D. SPARKMAN, TRUSTEE, Plaintiff, v.
QUEENSCAPE, INC., Defendant, Adv. Proc. No. 11-00232 (Bankr.
E.D.N.C.). A copy of the Court's Nov. 15, 2012 Order is available
at http://is.gd/7MMy3wfrom Leagle.com.
About Anderson Homes
Headquartered in Raleigh, North Carolina, Anderson Homes, Inc.,
engaged in the development, construction and sale of residential
properties in the form of single-family homes, townhomes and
condominiums. It owns, constructs improvements on, and sells (i)
single-family houses and townhomes in subdivisions known and
referred to as Edgewater, Bridgewater, Bridgewater West,
Cobblestone, Haw Village, Ridgefield, Amberlynn Valley, Cane
Creek, Muirfield Village, Pine Valley, Quail Meadows, Thornton
Commons Place, Willow Ridge, Creekside at Landon Farms, Keystone
Crossing, Sterling Ridge, Jeffries Creek, Briar Chapel, and Villas
at Forest Hills, and (ii) condominiums known as Blount Street
Commons.
Anderson Homes and its units filed for Chapter 11 on March 16,
2009 (Bankr. E.D. N.C. Lead Case No. 09-02062). Gerald A.
Jeutter, Jr., Esq., and John A. Northen, Esq., at Northen Blue,
LLP, represent the Debtors in their restructuring effort. At the
time of the filing, Anderson Homes said it had total assets of
$17,190,001 and total debts of $13,742,840.
AT HOME MEDICAL: Case Summary & 20 Largest Unsecured Creditors
--------------------------------------------------------------
Debtor: At Home Medical Supply, Inc.
1749 Florida Street
Memphis, TN 38103
Bankruptcy Case No.: 12-32457
Chapter 11 Petition Date: November 16, 2012
Court: United States Bankruptcy Court
Western District of Tennessee (Memphis)
Judge: Jennie D. Latta
Debtor's Counsel: John E. Dunlap, Esq.
LAW OFFICES OF JOHN E DUNLAP
1684 Poplar Ave
Memphis, TN 38104
Tel: (901) 726-6770
Fax: (901) 726-6771
E-mail: jdunlap00@gmail.com
Scheduled Assets: $6,912
Scheduled Liabilities: $1,686,367
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/tnwb12-32457.pdf
The petition was signed by Marsha McNair, CFO.
AXIANT LLC: Chapter 7 Trustee's Lawsuit Against Genesis Dismissed
-----------------------------------------------------------------
Bankruptcy Judge Mary F. Walrath granted the request of Genesis
Financial Solutions, Inc., for dismissal of the complaint filed by
the Chapter 7 for Axiant LLC.
In November 2008, Genesis and Axiant entered into an Attorney
Network Services Agreement pursuant to which Genesis placed
certain accounts with the Debtor for collection on a contingent
fee basis. On April 16, 2012, the Chapter 7 Trustee for Axiant
sued Genesis alleging that (i) Genesis breached the Agreement by
failing to remit pre-petition contingency fees totaling
$140,894.82 owed to the Debtor; (ii) Genesis was unjustly enriched
as a result of the breach; and (iii) Genesis must turn over the
funds.
The Court agrees with Genesis that the Chapter 7 Trustee's claims
for breach of contract and unjust enrichment are state law causes
of action, and would "arise under non-bankruptcy law and would
exist independent of the bankruptcy case."
The case is ALFRED T. GIULIANO, Chapter 7 Trustee for AXIANT, LLC,
Plaintiff, v. GENESIS FINANCIAL SOLUTIONS, INC., Defendant, Adv.
Proc. No. 12-50526 (Bankr. D. Del.). A copy of the Bankruptcy
Court's Nov. 15, 2012 Memorandum Opinion available at
http://is.gd/wgtq8zfrom Leagle.com.
About Axiant LLC
Huntersville, North Carolina-based Axiant, LLC, aka MBSolutions
LLC, filed for Chapter 11 bankruptcy protection (Bankr. D. Del.
Case No. 09-14118) on Nov. 20, 2009. Michael R. Nestor, Esq., and
Pilar G. Kraman, Esq., at Young Conaway Stargatt & Taylor, LLP,
served as counsel to the Debtor. Axiant estimated $10 million to
$50 million in both assets and debts in its Chapter 11 petition.
Axiant filed for Chapter 11 to effectuate a sale of its assets to
NCO Group, Inc. for between $7 million and $10 million. However,
Axiant's attempt to sell its assets ultimately failed. The
Bankruptcy Court entered an Order converting the case to a case
under chapter 7 of the Bankruptcy Code on Dec. 28, 2009. The
Court appointed Alfred T. Giuliano as the chapter 7 trustee.
AZURE SEAS: Voluntary Chapter 11 Case Summary
---------------------------------------------
Debtor: Azure Seas Holdings, LLC
c/o 5024 E. Lafayette Blvd.
Phoenix, AZ 85018
Bankruptcy Case No.: 12-24941
Chapter 11 Petition Date: November 16, 2012
Court: United States Bankruptcy Court
District of Arizona (Phoenix)
Judge: Redfield T. Baum Sr.
Debtor's Counsel: Bradley Jay Stevens, Esq.
JENNINGS, STROUSS & SALMON, PLC
One E Washington St #1900
Phoenix, AZ 85004-2554
Tel: (602) 262-5955
Fax: (602) 495-2729
E-mail: bstevens@jsslaw.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 Hugo R. Paulson, manager.
Affiliate that simultaneously sought Chapter 11 protection:
Debtor Case No.
------ --------
Azure Seas LLC 12-24945
Assets: $1,000,001 to $10,000,000
Debts: $1,000,001 to $10,000,000
BERRY PLASTICS: S&P Raises CCR to B on Improved Financial Profile
-----------------------------------------------------------------
Standard & Poor's Ratings Services raised its corporate credit
rating on Berry Plastics Corp. to 'B' from 'B-'.
"At the same time, we raised the issue-level ratings on Berry's
first-lien senior debt to 'B+' from 'B' and the recovery rating is
unchanged at '2', which indicates our expectation of substantial
(70% to 90%) recovery in the event of a payment default. We also
raised the issue-level rating on Berry's second-lien and
subordinated debt, and its parent company's senior unsecured debt
to 'CCC+' from 'CCC'. The recovery rating is unchanged at '6' on
these issues, which indicates our expectation of negligible (0% to
10%) recovery in the event of payment default. In addition, we
removed all ratings from CreditWatch, where we placed them with
positive implications on Sept. 20, 2012. The outlook is stable,"
S&P said.
"The upgrade reflects Berry's improved financial profile following
$455 million of debt reduction from initial public offering
proceeds and our expectation of improved operating trends for the
balance of 2012 and beyond," said credit analyst Henry Fukuchi.
"We expect stable volumes, manageable raw materials costs,
manufacturing efficiencies, ongoing cost reduction efforts, and
modest debt reduction will support these trends."
"The stable outlook reflects our expectation that modest free cash
generation will result in gradual deleveraging. However, if
economic conditions and consumer demand are somewhat better than
we anticipate or operating performance exceeds our expectations,
and Berry doesn't undertake any leveraging acquisitions, then we
believe credit metrics could strengthen sufficiently to warrant an
upgrade in the next few years. We could raise the ratings by one
notch if adjusted debt-to-EBITDA decreases below 5x and FFO-to-
adjusted debt increases to the mid-teens percentage area and
remains consistent through the business cycle. In addition, for a
higher rating, we would also need greater clarity on future
financial policy decisions related to growth, acquisitions, and
shareholder rewards," S&P said.
"We could lower the ratings if the company's liquidity
deteriorates or if earnings and cash flow decline unexpectedly
because of weaker demand for its products or challenges related to
passing through raw material costs. We could also lower the
ratings if financial policy decisions weaken its financial profile
or if the company is unable to refinance and extend a large
portion of its 2015 maturities in fiscal 2013," S&P said.
"Based on our downside scenario forecasts, we could lower the
ratings if operating margins (before depreciation and
amortization) weaken by 300 basis points or more from current
levels. At this point, the FFO-to-total adjusted debt will
decrease toward the mid-single digit percentage area and total
adjusted debt-to-EBITDA will increase to about 7x. We could also
lower the ratings if the company does not begin to take timely
steps to extend 2015 debt maturities," S&P said.
BIOZONE PHARMACEUTICALS: Incurs $98,700 Net Loss in 3rd Quarter
---------------------------------------------------------------
BioZone Pharmaceuticals, Inc., filed with the U.S. Securities and
Exchange Commission its quarterly report on Form 10-Q disclosing a
net loss of $98,730 on $4.89 million of sales for the three months
ended Sept. 30, 2012, compared with a net loss of $2.49 million on
$3.93 million of sales for the same period during the prior year.
The Company reported a net loss of $4.45 million on $13.31 million
of sales for the nine months ended Sept. 30, 2012, compared with a
net loss of $3.61 million on $8.93 million of sales for the same
period a year ago.
Biozone reported a net loss of $5.45 million in 2011, compared
with a net loss of $319,813 in 2010.
The Company's balance sheet at Sept. 30, 2012, showed
$8.25 million in total assets, $8.33 million in total liabilities
and a $74,927 total shareholders' deficiency.
A copy of the Form 10-Q is available for free at:
http://is.gd/SraMZG
About Biozone Pharmaceuticals
Biozone Pharmaceuticals, Inc., formerly, International Surf
Resorts, Inc., was incorporated under the laws of the State of
Nevada on Dec. 4, 2006, to operate as an internet-based provider
of international surf resorts, camps and guided surf tours. The
Company proposed to engage in the business of vacation real estate
and rentals related to its surf business and it owns the Web site
isurfresorts.com. During late February 2011, the Company began to
explore alternatives to its original business plan. On Feb. 22,
2011, the prior officers and directors resigned from their
positions and the Company appointed a new President, Director,
principal accounting officer and treasurer and began to pursue
opportunities in medical and pharmaceutical technologies and
products. On March 1, 2011, the Company changed its name to
Biozone Pharmaceuticals, Inc.
Since March 2011, the Company has been engaged primarily in
seeking opportunities related to its intention to engage in
medical and pharmaceutical businesses. On May 16, 2011, the
Company acquired substantially all of the assets and assumed all
of the liabilities of Aero Pharmaceuticals, Inc., pursuant to an
Asset Purchase Agreement dated as of that date. Aero manufactures
markets and distributes a line of dermatological products under
the trade name of Baker Cummins Dermatologicals.
On June 30, 2011, the Company acquired the Biozone Labs Group
which operates as a developer, manufacturer, and marketer of over-
the-counter drugs and preparations, cosmetics, and nutritional
supplements on behalf of health care product marketing companies
and national retailers.
In the auditors' report accompanying the financial statements for
year ended Dec. 31, 2011, Paritz and Company. P.A., in Hackensack,
N.J., expressed substantial doubt about the Company's ability to
continue as a going concern. The independent auditors noted that
the Company does not have sufficient cash balances to meet working
capital and capital expenditure needs for the next twelve months.
In addition, as of Dec. 31, 2011, the Company has a shareholder
deficiency and negative working capital of $4.37 million. The
continuation of the Company as a going concern is dependent on,
among other things, the Company's ability to obtain necessary
financing to repay debt that is in default and to meet future
operating and capital requirements.
BONDS.COM GROUP: Incurs $2.4 Million Net Loss in Third Quarter
--------------------------------------------------------------
Bonds.com Group, Inc., filed with the U.S. Securities and Exchange
Commission its quarterly report on Form 10-Q disclosing a net loss
applicable to common stockholders of $2.40 million on
$1.79 million of revenue for the three months ended Sept. 30,
2012, compared with a net loss applicable to common stockholders
of $6.20 million on $1.09 million of revenue for the same period
during the prior year.
For the nine months ended Sept. 30, 2012, the Company reported a
net loss applicable to common stockholders of $7.23 million on
$5.74 million of revenue, compared with a net loss applicable to
common stockholders of $12.79 million on $2.84 million of revenue
for the same period a year ago.
The Company reported a net loss of $14.45 million in 2011,
compared with a net loss of $12.51 million in 2010.
The Company's balance sheet at Sept. 30, 2012, showed
$9.45 million in total assets, $11.12 million in total liabilities
and a $1.67 million total stockholders' deficit.
Since its inception, the Company has generated limited revenues
and has an accumulated deficit of approximately $50,699,000 at
Sept. 30, 2012, used approximately $6,511,000 of cash in
operations for the nine months ended Sept. 30, 2012, and at
Sept. 30, 2012, had a stockholders' deficiency of approximately
$1,675,000 and a working capital deficiency of approximately
$3,216,000. Operations have been funded using proceeds received
from the issuance of common and preferred stock and the issuance
of notes to related and unrelated parties.
These conditions raise substantial doubt about the Company's
ability to continue as a going concern. The Company raised
$17,000,000 of new capital funded in December 2011 ($10,000,000),
January 2012 ($300,000) and June 2012 ($6,700,000). The Company
plans to continue to grow its operations through the
implementation of the business plan and when necessary through
raising additional capital.
Daszkal Bolton LLP, in Boca Raton, Florida, issued a "going
concern" qualification on the consolidated financial statements
for the year ended Dec. 31, 2011, citing recurring losses and
negative cash flows from operations that raise substantial doubt
about the Company's ability to continue as a going concern.
A copy of the Form 10-Q is available for free at:
http://is.gd/NbGvjB
About Bonds.com Group
Based in Boca Raton, Florida, Bonds.com Group, Inc. (OTC BB: BDCG)
-- http://www.bonds.com/-- through its subsidiary Bonds.com,
Inc., serves institutional fixed income investors by providing a
comprehensive zero subscription fee online trading platform. The
Company designed the BondStation and BondStationPro platforms to
provide liquidity and competitive pricing to the fragmented Over-
The-Counter Fixed Income marketplace.
The Company differentiates itself by offering through Bonds.com,
Inc., an inventory of more than 35,000 fixed income securities
from more than 175 competing sources. Asset classes currently
offered on BondStation and BondStationPro, the Company's fixed
income trading platforms, include municipal bonds, corporate
bonds, agency bonds, certificates of deposit, emerging market
debt, structured products and U.S. Treasuries.
BRIGHT HORIZONS: S&P Puts 'B' CCR on Watch Positive on Planned IPO
------------------------------------------------------------------
Standard & Poor's Ratings Services placed all ratings on
Watertown, Mass.-based childcare center operator Bright Horizons
Capital Corp., including the 'B' corporate credit rating, on
CreditWatch with positive implications, following the company's
announcement of its plan to repay debt with proceeds from its
proposed IPO filing.
"The CreditWatch placement follows the company's recent
announcement that it plans to repay its 13% $191.6 million PIK
notes with proceeds from its recently proposed IPO filing. If the
transaction is successful, we expect pro forma lease-adjusted
leverage will decline to roughly 5x from about 6x as of Sept. 30,
2012. The transaction will also further improve its adequate
liquidity position as these notes require cash interest payments
in June 2013. The company was required to make a make a $98
million principal redemption based on the accretion of the notes
since their issuance four years ago," S&P said.
"We view Bright Horizons' business risk profile as 'fair' because
of its good position in employer-sponsored centers, some
sensitivity of capacity utilization rates to high unemployment,
and highly competitive conditions in the fragmented child care
business," said Standard & Poor's credit analyst Hal Diamond.
"In the third quarter, revenue and EBITDA outperformed our
expectations, growing 10% and 29%. The EBITDA margin was
relatively high at 15.4% for the 12 months ended Sept. 30, 2012.
Margins have risen over 200 basis points over the past three years
due to the growth of higher-margin back-up care services, steady
3% to 4% tuition rate increases, and improving critical mass of
international operations," S&P said.
"We will resolve the CreditWatch listing upon completion of the
planned IPO and our review of the company's business and financial
strategies and its operating outlook. We believe the rating upside
is limited to one notch based on the company's aggressive
financial policies, including its desire to continue modest
acquisitions and invest in new centers," S&P said.
CAPITOL BANCORP: Must Address Capital Woes by December 20
---------------------------------------------------------
Robert Barba at American Banker reports that Capitol Bancorp has
disclosed that the New Mexico Regulation and Licensing Department
has given it until Dec. 20, 2012, to address the capital woes at
its Sunrise Bank of Albuquerque or face seizure. Sunrise is
significantly undercapitalized and its state regulator says the
bank is operating in an unsound condition and lacks a quorum of
outside directors.
"The bank is actively addressing this notice and working toward
correcting its capital position as part of Capitol's restructuring
and recapitalization efforts," the report quotes the company as
saying.
According to the report, the failing of one bank could be
detrimental to the overall company, given the Federal Deposit
Insurance Corp.'s ability to levy the cost of a failure on related
banks. At Sept. 30, all of the $1.7 billion-asset company's
remaining dozen banks were in fragile states. None of the banks
is considered well capitalized.
The report notes a confirmation hearing of Capitol's plan is set
for Dec. 4, 2012. The plan calls for all of Capitol's existing
debt and equity be converted into a 53% equity stake and for new
investors to invest $70 million to $115 million in exchange for a
47% stake.
The report adds, in October, Capitol entered into agreements with
ValStone Partners, a private-equity firm in Michigan, to invest
$50 million in the company and buy $207 million of its
nonperforming assets. The agreements, however, are contingent on
the approval of the bankruptcy. Otherwise, ValStone can walk away
without a penalty.
According to the report, bankruptcy lawyers say the company
doesn't need to have definitive agreements for all of the capital
by the confirmation hearing, but would likely need to show
substantial proof that it was close to getting such agreements
quickly. The hearing has been rescheduled twice -- it was
initially set for mid-September, then moved to mid-October. That
could be a sign that Capitol is struggling to line up the
additional investors, lawyers say, though they added that
rescheduling is not entirely unusual.
The report says Capitol also reported that its Central Bank of
Arizona, Sunrise Bank of Arizona and Pisgah Community Bank were
critically undercapitalized, with leverage ratios at or below 2%
at Sept. 30. Such a capital classification gives regulators the
legal authority to close banks, but Capitol said it plans to push
the banks' ratios above the threshold by the end of November.
The report relates the company said it would do so with the
proceeds it is expecting to receive from the sale of High Desert
Bank, which is expected to close this quarter. A strategy of
selling banks to prop up others has been Capitol's key to survival
since April 2009. At the onset of the downturn, the company had
64 banks. Through consolidations and sales, it had a dozen at
Sept. 30.
The report says the company's financial condition improved
modestly in the third quarter, with nonperforming assets falling
10% from the second quarter, to $231.8 million. Capitol reported
a third-quarter loss of $5.67 million, narrowing its loss by 75%
from a year earlier.
About Capitol Bancorp
Capitol Bancorp Ltd. and Financial Commerce Corporation filed
voluntary Chapter 11 bankruptcy petitions (Bankr. E.D. Mich. Case
Nos. 12-58409 and 12-58406) on Aug. 9, 2012.
Capitol Bancorp -- http://www.capitolbancorp.com/-- is a
community banking company with a network of individual banks and
bank operations in 10 states and total consolidated assets of
roughly $2.0 billion as of June 30, 2012. CBC owns roughly 97% of
FCC, with a number of CBC affiliates owning the remainder. FCC,
in turn, is the holding company for five of the banks in CBC's
network. CBC is registered as a bank holding company under the
Bank Holding Company Act of 1956, as amended, 12 U.S.C. Sec. 1841,
et seq., and trades on the OTCQB under the symbol "CBCR."
Lawyers at Honigman Miller Schwartz and Cohn LLP represent the
Debtors as counsel.
In its petition, Capitol Bancorp scheduled $112,634,112 in total
assets and $195,644,527 in total liabilities. The petitions were
signed by Cristin K. Reid, corporate president.
CAPITAL POWER: S&P Cuts Global Preferred Stock Rating to 'BB'
-------------------------------------------------------------
Standard & Poor's Ratings Services lowered its long-term corporate
credit and senior unsecured debt ratings on Edmonton, Alta.-based
power generation company Capital Power Corp. (CPC) and subsidiary
Capital Power L.P. (CPLP) to 'BBB-' from 'BBB'. At the same time,
Standard & Poor's lowered its global preferred stock rating on the
company to 'BB' from 'BB+', and its Canada scale rating to 'P-3'
from 'P-3 (High)'. The outlook is stable.
"The downgrade reflects our views that CPLP will not improve and
maintain its adjusted funds from operations-to-debt to levels
consistent with the previous ratings or improve its business risk
profile in the near term," said Standard & Poor's credit analyst
Stephen Goltz. "The ratings on CPC reflect Standard & Poor's
opinion on the company's key and only material operating
subsidiary, CPLP.
"The ratings on CPC and CPLP reflect Standard & Poor's opinion of
the partnership's strong business risk profile and significant
financial risk profile. Providing key support to the ratings is a
more measured perspective on growth and a moderately diversified
generation portfolio, which consists of a relatively young fleet.
Moreover, the partnership recently completed the Quality Wind
project under budget, reducing construction risk and demonstrating
strong project development capability. We also believe CPLP
benefits from a portion of its cash flow from long-term power
purchase contracts with predominantly creditworthy counterparties,
which add predictability. In our view, offsetting these strengths
is a high degree of leverage, notwithstanding the partnership's
efforts to reduce leverage through such things as equity issuance,
which exposes it to weakening in power prices, particularly in
light of a relatively large open position. We believe this
heightens the volatility of cash flow," S&P said.
"The Alberta power market has weakened and is experiencing lower
power prices. Currently the forecast Alberta forward price for
2013 and 2014 is approximately C$58 and C$54 per megawatt-hour
(MWh), respectively. This is in contrast to earlier this year
where forecast prices were in the mid-to-upper-C$60 MWh for the
same period. We attribute the lower prices in part to the recent
arbitration panel's decision regarding Sundance Units 1 and 2,
which CPLP expects now to return to service in the fall of 2013.
As we had said in our report from June 27, 2012, a decline in
power prices in which the partnership operates could inhibit its
ability to achieve the credit metrics consistent with the
ratings," S&P said.
"The stable outlook reflects our expectation of adjusted funds
from operation (AFFO)-to-debt remaining in the 15%-20% range and a
relatively stable business risk profile. We could raise the
ratings during our two-year outlook period if CPLP improves its
business risk profile or if we expect the company to achieve and
maintain AFFO-to-debt of more than 20%. Conversely, while we don't
expect it, a material debt-financed acquisition or capital
building program or operational disruptions of a prolonged nature
leading to AFFO-to-debt falling below 15% could result in a
downgrade," S&P said.
CELOTEX CORP: 11th Cir. Rules PD Advisory Committee Fees
--------------------------------------------------------
The U.S. Court of Appeals for the Eleventh Circuit vacated and
remanded for further proceedings a bankruptcy court order denying
the request of the Property Damage Advisory Committee to compel
payment of counsel fees from the Asbestos Settlement Trust
established in the Chapter 11 cases of The Celotex Corporation and
Carey Canada, Inc.
The bankruptcy court held that the Committee's claims-processing
duties ceased after Aug. 12, 2009 -- the cut-off date for filing
or processing any additional claims against the Asbestos Trust.
The district court affirmed the bankruptcy court, and the
Committee appealed.
The Eleventh Circuit, however, ruled that the Committee correctly
pointed out that its duties are broader than facilitating the
processing of new property damage claims. The Trustees are
obligated to furnish the Committee with annual financial reports
and reports regarding the number and type of claims disposed of
during the previous fiscal year. The Asbestos Trust Agreement
appears to contemplate some level of review and approval of these
reports by the Committee.
"Therefore, we cannot conclude that August 12, 2009 -- the cut-off
date for filing new claims against the Trust -- is determinative
of whether the Committee was performing its duties under the Trust
Agreement," the Eleventh Circuit said.
"At this juncture, we need not delineate all the Committee's
duties under the Trust Agreement. It suffices for now to say that
at least some duties under the Trust Agreement were broader than
those identified in the [Third Amended and Restated Asbestos
Property Damage Claims Resolution Procedures], and that the
Committee performed those broader duties even after the cut-off
date for filing new claims against the Trust."
The case before the Appeals Court is, THE PROPERTY DAMAGE ADVISORY
COMMITTEE, Plaintiff-Appellant, v. THE CELOTEX ASBESTOS SETTLEMENT
TRUST, Defendant-Appellee, No. 12-11221 (11th Cir.). A copy of
the Eleventh Circuit's Nov. 16, 2012 decision is available at
http://is.gd/FamlU0from Leagle.com.
About Celotex Corp.
The Celotex Corporation manufactured, marketed, and distributed
building products. Carey Canada Inc. mined asbestos until it
ceased operations in 1986. Celotex and Carey Canada sought
chapter 11 protection (Bankr. M.D. Fla. Case No. 90-10016) on
Oct. 12, 1990. At the time of the filing, Celotex and Carey
Canada had been named as defendants in thousands of lawsuits filed
by Asbestos Personal Injury Claimants, and in hundreds of lawsuits
filed by Asbestos Property Damage Claimants. On Dec. 6, 1996, the
Bankruptcy Court entered an Order Confirming the Modified Joint
Plan of Reorganization for Celotex and Carey Canada. A principal
feature of the confirmed Plan was the creation of the Asbestos
Settlement Trust under 11 U.S.C. Sec. 524(g) "to address,
liquidate, resolve, and disallow or allow and pay Asbestos Claims,
which will operate in accordance with the Asbestos Claims
Resolution Procedures."
CERVANTES ORCHARDS: Creditor Did Not Violate Single-Action Rule
---------------------------------------------------------------
A creditor proceeded with collection efforts on some promissory
notes in superior court against the defendants, one of the
defendants was in a Chapter 11 bankruptcy proceeding. The
defendants objected to the state court proceedings and argued that
they violated Washington's single-action rule (RCW 61.12.120).
The Court of Appeals of Washington, Division III, concluded that
the state court proceedings did not duplicate the bankruptcy
proceedings and do not therefore violate the single-action rule.
The Washington Court of Appeals affirmed the lower court's summary
judgment in favor of the creditor.
Deere Credit, Inc., loaned about $3,800,000 to Cervantes Orchards
& Vineyards LLC, Cervantes Nurseries LLC, Cervantes Packing &
Storage LLC, Manchego Real LLC, and Jose and Cynthia Cervantes in
July 2003, pursuant to the terms of three promissory notes. The
notes were secured by mortgages on several parcels of real
property, among other things.
Cervantes failed to pay the notes. Cervantes and Deere Credit
executed a forbearance agreement that provided in part that
Cervantes would have until Jan. 31, 2005, to repay the
obligations. Cervantes again failed to timely pay the notes in
full. Deere Credit sued in August 2005 for payment and to
foreclose on the property pledged as security.
Cervantes Orchards & Vineyards alone filed for Chapter 11
bankruptcy protection in the United States Bankruptcy Court for
the Eastern District of Washington on Aug. 19, 2005. A plan of
reorganization was confirmed on April 11, 2007. Cervantes and
Deere Credit then entered into a second forbearance agreement on
April 30, 2007, providing that Deere Credit would agree to the
Cervantes Orchards & Vineyards' reorganization plan but
"conditioned upon the execution . . . of this Second Forbearance
Agreement." Both the reorganization plan and the forbearance
agreement required Cervantes Orchards & Vineyards individually and
Cervantes collectively to make quarterly payments and fully pay
their obligations to Deere Credit before Dec. 31, 2009.
Cervantes again failed to make timely payment. Cervantes Orchards
& Vineyards also failed to make payments under the reorganization
plan. Deere Credit again filed suit in state court in November
2009. Its complaint prayed for a judgment for an order
foreclosing on its security. Deere Credit also moved in the
bankruptcy action pursuant to the bankruptcy reorganization plan
to reopen the bankruptcy and have a liquidating agent appointed.
The bankruptcy court granted the motion and appointed a
liquidating agent.
Sunnyside, Washington-based Cervantes Orchards and Vineyards LLC
filed for Chapter 11 bankruptcy protection on Feb. 12, 2010
(Bankr. E.D. Wash. Case No. 10-00787). The Company listed $10
million to $50 million in assets and $1 million to $10 million in
liabilities in its petition.
The agent auctioned a variety of real and personal property owned
by Cervantes Orchards & Vineyards and distributed the proceeds of
those sales to creditors.
Deere Credit moved for summary judgment in the state court action
on Feb. 22, 2010. Cervantes moved to dismiss the state court
collection suit and argued that Deere Credit could not pursue this
action to collect on the same debt because it had forced sale of
real property in the bankruptcy proceedings and the state court
proceedings therefore violated Washington's single-action rule
(RCW 61.12.120). The Yakima County Superior Court concluded that
the state court proceedings did not violate the prohibition
against multiple actions and granted Deere Credit summary
judgment.
The single-action statute bars a plaintiff from foreclosing "while
he is prosecuting any other action for the same debt or matter
which is secured by the mortgage."
Cervantes contends the single-action statute, RCW 61.12.120,
prohibited Deere Credit from reopening the Cervantes Orchards &
Vineyards' bankruptcy action to force liquidation, and
simultaneously bringing the superior court action against
Cervantes collectively to foreclose on real property to collect on
the same debt.
Deere Credit responds that bankruptcy liquidation pursuant to the
terms of a reorganization plan is not an "action" under RCW
61.12.120. Deere Credit also contends that the two actions
technically dealt with different debts (one was based on the
forbearance agreement and the second was based on the bankruptcy
reorganization plan) and different debtors (Cervantes Orchards &
Vineyards, individually, and Cervantes collectively). And it
urges that the issue is now moot because the bankruptcy
liquidation is complete and the superior court judgment credits
the amount received in that proceeding against the overall debt.
The Court of Appeals held that the bankruptcy proceedings and the
foreclosure action were certainly interrelated but did not
constitute the same "action" for purposes of Washington's single-
action statute. The bankruptcy case was not a two-party action as
contemplated by RCW 61.12.120. It involved multiple creditors
with specific claims and interests. The bankruptcy case also was
not transformed into a foreclosure when Deere Credit moved for an
order appointing a liquidating agent after Cervantes Orchards &
Vineyards defaulted -- a remedy it was legally entitled to under
the reorganization plan.
A copy of the Appeals Court's Nov. 15, 2012 Opinion is available
at http://is.gd/ZB2WXXfrom Leagle.com.
CHARLES ANTHONY: Voluntary Chapter 11 Case Summary
--------------------------------------------------
Debtor: Charles Anthony Orchard, LLC
c/o 5024 E. Lafayette Blvd
Phoenix, AZ 85018
Bankruptcy Case No.: 12-24943
Chapter 11 Petition Date: November 16, 2012
Court: United States Bankruptcy Court
District of Arizona (Phoenix)
Judge: Randolph J. Haines
Debtor's Counsel: Bradley Jay Stevens, Esq.
JENNINGS, STROUSS & SALMON, PLC
One E Washington St #1900
Phoenix, AZ 85004-2554
Tel: (602) 262-5955
Fax: (602) 495-2729
E-mail: bstevens@jsslaw.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 Hugo R. Paulson, manager.
CHINA DU KANG: Delays Third Quarter Form 10-Q for Review
--------------------------------------------------------
China Du Kang Co., Ltd., informed the U.S. Securities and Exchange
Commission it requires additional time in order to prepare and
file its quarterly report on Form 10-Q for the quarter ended
Sept. 30, 2012. The Company is still awaiting its independent
auditor to review its management prepared unaudited financial
statements in order to prepare Form 10-Q.
The Company does not expect significant changes in its results of
operations and earnings from the corresponding period ended
Sept. 30, 2011.
About China Du Kang
Headquartered in Xi'an, Shaanxi, in the PRC, China Du Kang Co.,
Ltd., was incorporated as U.S. Power Systems, Inc., in the State
of Nevada on Jan. 16, 1987. The Company is principally engaged in
the business of production and distribution of distilled spirit
with the brand name of "Baishui Dukang". The Company also
licenses the brand name to other liquor manufactures and liquor
stores.
After auditing the 2011 financial statements, Keith K. Zhen, CPA,
in Brooklyn, New York, expressed substantial doubt about the
Company's ability to continue as a going concern. The independent
auditors noted that the company incurred an operating loss for
each of the years in the two-year period ended Dec. 31, 2011, and
as of Dec. 31, 2011, had an accumulated deficit.
The Company's balance sheet at June 30, 2012, showed $17.44
million in total assets, $7.45 million in total liabilities and
$9.98 million in total shareholders' equity.
CHINA EXECUTIVE: Delays Form 10-Q for Third Quarter
---------------------------------------------------
China Executive Education Corp. notified the U.S. Securities and
Exchange Commission that because of delays in coordinating
reports, the Company's quarterly report on Form 10-Q for the
fiscal period ended Sept. 30, 2012, could not be timely filed
without unreasonable effort or expense. The Company anticipates
that it will file its Form 10-Q within the five-day grace period
provided by Exchange Act Rule 12b-25.
About China Executive
Hangzhou, China-based China Executive Education Corp. is an
executive education company with operations in Hangzhou and
Shanghai, China. It operates comprehensive business training
programs that are designed to fit the needs of Chinese
entrepreneurs and to improve their leadership, management and
marketing skills, as well as bottom-line results.
Albert Wong & Co, in Hong Kong, China, issued a "going concern"
qualification on the financial statements for the year ended
Dec. 31, 2011. The independent auditors noted that the Company
has accumulated deficits as at Dec. 31, 2011, of $17,466,892
including net losses of $5,478,202 for the year ended Dec. 31,
2011, which raised substantial doubt about the Company's ability
to continue as a going concern.
The Company reported a net loss of US$5.47 million in 2011,
compared with a net loss of US$8.54 million in 2010.
The Company's balance sheet at March 31, 2012, showed US$10.14
million in total assets, US$27.32 million in total liabilities and
a US$17.17 million total stockholders' deficiency.
The Company reported a net loss of US$5.47 million in 2011,
compared with a net loss of US$8.54 million in 2010.
CICERO INC: CEO & CFO to Get 1.5MM Common Shares Upon Termination
-----------------------------------------------------------------
The Compensation Committee of the Board of Directors of Cicero
Inc. approved an amendment, effective Sept. 1, 2012, to the
Company's Employment Agreement with John P. Broderick, the
Company's Chief Executive Officer and Chief Financial Officer,
under which Mr. Broderick will be entitled to receive 1,500,000
shares of the Company's common stock in the event of the
termination, with or without cause, of his employment with the
Company or in the event of a change of control of the Company.
Delays Q3 Form 10-Q
Cicero said the compilation, verification and review by the
Company's independent auditors of the information required to be
presented in the Form 10-Q for the period ended Sept. 30, 2012,
has required additional time rendering timely filing of the Form
10-Q impracticable without undue hardship and expense to the
Company.
The Company reported revenues of $734,000 for the three months
ended Sept. 30, 2011, and expects to report revenues of
approximately $569,000 for the three months ended Sept. 30, 2012.
The decrease in revenue is primarily due to a decrease in
maintenance and consulting revenue partially offset by an increase
in software revenue.
About Cicero Inc.
Cary, N.C.-based Cicero, Inc., provides business integration
software solutions and also provides technical support, training
and consulting services as part of its commitment to providing
customers with industry-leading solutions.
The Company focuses on the customer experience management market
with emphasis on desktop integration and business process
automation with its Cicero XM(TM) products. Cicero XM enables the
flow of data between different applications, regardless of the
type and source of the application, eliminating redundant entry
and costly mistakes.
The Company has extended the maturity dates of several debt
obligations that were due in 2011 to 2012, to assist with
liquidity and may attempt to extend these maturities again if
necessary. Despite the recent additions of several new clients,
the Company continues to struggle to gain additional sources of
liquidity on terms that are acceptable to the Company.
The Company reported a net loss of $2.97 million in 2011,
compared with a net loss of $459,000 in 2010.
The Company's balance sheet at June 30, 2012, showed $4.03 million
in total assets, $8.47 million in total liabilities and a $4.44
million total stockholders' deficit.
CITRUS VALLEY: S&P Revises Outlook on 'BB+' SPUR on Certificates
----------------------------------------------------------------
Standard & Poor's Ratings Services revised its rating outlook to
positive from stable on the California Statewide Communities
Development Authority's certificates of participation (COPs),
issued for Citrus Valley Health Partners (CVHP). Standard & Poor's
also affirmed its 'BB+' underlying rating (SPUR) on the COPs.
"The positive outlook reflects our view of CVHP's improved
liquidity and financial flexibility stemming from the California
Provider Fee Program and operational improvements, the
organization's extended seismic compliance date, and the much
lower-than-anticipated capital spending needs to achieve seismic
compliance," said Standard & Poor's credit analyst Kenneth Gacka.
At Sept. 30, 2012, CVHP had $68.2 million of long-term debt.
CLARE OAKS: Court Confirms Bondholders' Third Amended Plan
----------------------------------------------------------
Bankruptcy Judge Pamela S. Hollis confirmed the Third Amended Plan
of Reorganization for Clare Oaks. The Plan dated Sept. 13, 2012,
was filed by Wells Fargo Bank, National Association, as Master
Trustee and Sovereign Bank, N.A., as plan sponsors.
Among other things, the Plan contemplates the issuance of:
-- Series 2012A Bonds
On the Plan Effective Date, or as soon as reasonably practicable
thereafter, the Issuer will issue the Series 2012A Bonds in the
aggregate principal amount of $12,000,000. The members of the
Steering Committee or their designee, along with the Bank and its
participant, will purchase the Series 2012A Bonds on a Pro Rata
basis.
-- Series 2012B Bonds
On the Effective Date, or as soon as reasonably practicable
thereafter, the Issuer will issue the Series 2012B Bonds in the
approximate original aggregate principal amount of $40,000,000.
The Holders of the Senior Secured Bond Claim will exchange their
existing Series 2006 Bonds for Series 2012B Bonds on a pro rata
basis.
-- Series 2012C Bonds
On the Effective Date, or as soon as reasonably practicable
thereafter, the Issuer will issue the Series 2012C Bonds in the
approximate original aggregate principal amount of $35,000,000.
The Holders of the Senior Secured Bond Claim will exchange their
existing Series 2006 Bonds for Series 2012C-1 Bonds, Series 2012C-
2 Bonds, Series 2012C-3 Bonds, each on a pro rata basis.
No other plans were filed for the Debtor.
Earlier in the case, the Debtor attempted to sell its Clare Oaks
Campus to ER Propco Co, LLC aka Evergreen for $16 million, subject
to higher and better offers. Bill Rochelle, the bankruptcy
columnist for Bloomberg News, reported the planned sale was
scrapped as the bondholders found it insufficient since it would
have generated only $10 million for them after paying expenses and
the loan financing the bankruptcy. The bondholders submitted
their own plan.
Bloomberg said the bondholders sponsoring the plan are owed
roughly $95.8 million.
According to Mr. Rochelle, the secured bondholders' plan sets
aside some cash that could pay as much as 2.7% on $1.9 million in
unsecured debt. For a projected 45% recovery, bondholders will
receive $40 million in new second-lien bonds that will pay
interest only at 4% for 15 years. The Bloomberg report said
emergence from Chapter 11 will be financed by a $12 million first-
lien secured loan provided by some of the bondholders.
A copy of the Court's Nov. 15, 2012 Findings of Fact, Conclusions
of Law, and Order Confirming Plan Sponsor's Plan of Reorganization
is available at http://is.gd/ic2bwrfrom Leagle.com.
About Clare Oaks
Clare Oaks, an Illinois not-for-profit corporation organized under
section 501(c)(3) of the Internal Revenue Code, operates a
namesake continuing care retirement community in Bartlett,
Illinois. Its members are the Sisters of St. Joseph of the Third
Order of St. Francis, a Roman Catholic religious institute, who
are elected and serving as the members of the Central Board of the
Congregation. Clare Oaks is managed by CRSA/LCS Management LLC,
an affiliate of Life Care Services LLC.
Clare Oaks filed for Chapter 11 bankruptcy (Bankr. N.D. Ill. Case
No. 11-48903) on Dec. 5, 2011. Judge Pamela S. Hollis presides
over the case. David R. Doyle, Esq., George R. Mesires, Esq., and
Patrick F. Ross, Esq., at Ungaretti & Harris LLP, in Chicago,
serve as the Debtor's counsel. North Shores Consulting serves as
the Debtor's operations consultant. Continuum Development
Services and Alvarez & Marsal Healthcare Industry Group LLC serve
as advisors. Alvarez & Marsal's Paul Rundell serves as the Chief
Restructuring Officer. Sheila King Marketing + Public Relations
serves as communications advisors. CliftonLarsonAllen is the
Debtor's accountants. B.C. Ziegler and Company is the Debtor's
proposed investment banker and financial advisor. In its
petition, Clare Oaks estimated $100 million to $500 million in
assets and debts. The petition was signed by Michael D. Hovde,
Jr., president.
Attorneys at Neal Wolf & Associates, LLC, represent the Official
Committee of Unsecured Creditors as counsel.
Wells Fargo, as master trustee and bond trustee, is represented by
Daniel S. Bleck, Esq., and Charles W. Azano, Esq., at Mintz Levin
Cohen Ferris Glovsky and Popeo PC; and Robert M. Fishman, Esq.,
and Allen J. Guon, Esq., at Shaw Gussis Fishman Glantz Wolfson &
Towbin LLC. Sovereign Bank, the letters of credit issuer, is
represented by John R. Weiss, Esq., at Duane Morris LLP. Senior
Care Development LLC, the DIP Lender, is represented by William S.
Fish, Jr., Esq., and Sarah M. Lombard, Esq., at Hinckley Allen &
Snyder LLP.
CLEAR CHANNEL: Bank Debt Trades at 19% Off in Secondary Market
--------------------------------------------------------------
Participations in a syndicated loan under which Clear Channel
Communications, Inc., is a borrower traded in the secondary market
at 80.99 cents-on-the-dollar during the week ended Friday, Nov.
16, a drop of 0.87 percentage points from the previous week
according to data compiled by LSTA/Thomson Reuters MTM Pricing and
reported in The Wall Street Journal. The Company pays 365 basis
points above LIBOR to borrow under the facility. The bank loan
matures on Jan. 30, 2016, and carries Moody's 'Caa1' rating and
Standard & Poor's 'CCC+' rating. The loan is one of the biggest
gainers and losers among 192 widely quoted syndicated loans with
five or more bids in secondary trading for the week ended Friday.
About Clear Channel
San Antonio, Texas-based CC Media Holdings, Inc. (OTC BB: CCMO) --
http://www.ccmediaholdings.com/-- is the parent company of Clear
Channel Communications, Inc. CC Media Holdings is a global media
and entertainment company specializing in mobile and on-demand
entertainment and information services for local communities and
premier opportunities for advertisers. The Company's businesses
include radio and outdoor displays.
For the six months ended June 30, 2012, the Company reported a net
loss attributable to the Company of $182.65 million on
$2.96 billion of revenue. Clear Channel reported a net loss of
$302.09 million on $6.16 billion of revenue in 2011, compared with
a net loss of $479.08 million on $5.86 billion of revenue in 2010.
The Company had a net loss of $4.03 billion on $5.55 billion of
revenue in 2009.
The Company's balance sheet at June 30, 2012, showed
$16.45 billion in total assets, $24.31 billion in total
liabilities, and a $7.86 billion total shareholders' deficit.
Bankruptcy Warning
At March 31, 2012, the Company had $20.7 billion of total
indebtedness outstanding. The Company said in its quarterly
report for the period ended March 31, 2012, that its ability to
restructure or refinance the debt will depend on the condition of
the capital markets and the Company's financial condition at that
time. Any refinancing of the Company's debt could be at higher
interest rates and increase debt service obligations and may
require the Company and its subsidiaries to comply with more
onerous covenants, which could further restrict the Company's
business operations. The terms of existing or future debt
instruments may restrict the Company from adopting some of these
alternatives. These alternative measures may not be successful
and may not permit the Company or its subsidiaries to meet
scheduled debt service obligations. If the Company and its
subsidiaries cannot make scheduled payments on indebtedness, the
Company or its subsidiaries, as applicable, will be in default
under one or more of the debt agreements and, as a result the
Company could be forced into bankruptcy or liquidation.
* * *
As reported in the TCR on Oct. 17, 2012, Fitch Ratings has
affirmed the 'CCC' Issuer Default Rating (IDR) of Clear Channel
Communications, Inc. The Rating Outlook is Stable.
Fitch's ratings concerns center on the company's highly leveraged
capital structure, with significant maturities in 2016; the
considerable and growing interest burden that pressures FCF;
technological threats and secular pressures in radio broadcasting;
and the company's exposure to cyclical advertising revenue. The
ratings are supported by the company's leading position in both
the outdoor and radio industries, as well as the positive
fundamentals and digital opportunities in the outdoor advertising
space.
The TCR also reported in October 2012 that Standard & Poor's
Ratings Services assigned Clear Channel's proposed $2 billion
priority guarantee notes due 2019 an issue-level rating of 'CCC+'
(the same level as the 'CCC+' corporate credit rating on the
parent company) and a recovery rating of '4', indicating its
expectation for average (30% to 50%) recovery in the event of a
payment default.
"In addition, we are affirming our 'CCC+' corporate credit rating
on both the holding company, CC Media Holdings Inc., and operating
subsidiary Clear Channel, which we view on a consolidated basis;
the rating outlook is negative," said Standard & Poor's credit
analyst Jeanne Shoesmith.
"The CC Media Holdings Inc. reflects the company's steep debt
leverage and significant 2016 debt maturities. The proposed
transaction extends about $2 billion of debt from 2014 and 2016 to
2019 and reduces 2016 maturities from $12 billion to a little over
$10 billion. However, the interest rate on the new debt is about
5% higher than the existing term loan B debt. As a result, we
expect that EBITDA coverage of interest will be very thin at about
1.2x and that discretionary cash flow will be only modestly
positive in 2013, hindering the company's ability to repay debt
and afford additional refinancing transactions with similar
interest rate increases. The transaction increases the company's
flexibility to repay 2014 maturities (currently $1.5 billion),
which previously could only be repaid on a pro rata basis, and now
permits the company to exchange and extend $3 billion of
additional loans. We still view a significant increase in the
average cost of debt or deterioration in operating performance for
either cyclical, structural, or competitive reasons, as major
risks as the company proceeds with a strategy to deal with its
2016 maturities," S&P said.
COLONIAL BANCGROUP: FDIC Sues PwC, Crowe Horwath Over Collapse
--------------------------------------------------------------
Patrick Fitzgerald, writing for Dow Jones Newswires, reports the
Federal Deposit Insurance Corp. filed a complaint in U.S District
Court in Montgomery, Ala., against auditors PricewaterhouseCoopers
LLP and Crowe Horwath LLP for more than $1 billion, alleging
professional malpractice, gross negligence and breach of contract
for failing to catch the long-running fraud at Colonial Bank's
largest client, Taylor Bean & Whitaker Mortgage Corp. Dow Jones
says the little-noticed lawsuit, filed Oct. 31, marks the first
time the FDIC has sued the auditors of a failed bank since the
onset of the financial crisis.
PwC served as Colonial's external auditor and Crowe provided
internal auditing service to the bank. According to Dow Jones,
the FDIC said if the two auditors had done their jobs properly,
the Taylor Bean fraud would have been uncovered as early as 2007
and more than $1 billion in estimated losses would have been
avoided. The FDIC wants to recover those losses.
The report says both PwC and Crowe Horwath have denied any
wrongdoing.
About The Colonial BancGroup
Headquartered in Montgomery, Alabama, The Colonial BancGroup,
Inc., (NYSE: CNB) owned Colonial Bank, N.A, its banking
subsidiary. Colonial Bank -- http://www.colonialbank.com/--
operated 354 branches in Florida, Alabama, Georgia, Nevada and
Texas with over $26 billion in assets. On Aug. 14, 2009, Colonial
Bank was seized by regulators and the Federal Deposit Insurance
Corporation was named receiver. The FDIC sold most of the assets
to Branch Banking and Trust, Winston-Salem, North Carolina. BB&T
acquired $22 billion in assets and assumed $20 billion in deposits
of the Bank.
The Colonial BancGroup filed for Chapter 11 bankruptcy protection
(Bankr. M.D. Ala. Case No. 09-32303) on Aug. 25, 2009. W. Clark
Watson, Esq., at Balch & Bingham LLP, and Rufus T. Dorsey IV,
Esq., at Parker Hudson Rainer & Dobbs LLP, serve as counsel to the
Debtor. The Debtor disclosed $45 million in total assets and $380
million in total liabilities as of the Petition Date.
In September 2009, an Official Committee of Unsecured Creditors
was formed consisting of three members, Fine Geddie & Associates,
The Bank of New York Trust Company, N.A., and U.S. Bank National
Association. Burr & Forman LLP and Schulte Roth & Zabel LLP serve
as co-counsel for the Committee.
Colonial Brokerage, a wholly owned subsidiary of Colonial
BancGroup, filed for Chapter 7 protection with the U.S. Bankruptcy
Court in the Middle District of Alabama in June 2010. Susan S.
DePaola serves as Chapter 7 trustee.
In June 2011, Bankruptcy Judge Dwight H. Williams Jr., signed off
on Colonial BancGroup's revised Chapter 11 liquidation plan over
the FDIC's objection.
COMMERCETEL CORP: Incurs $2.3 Million Net Loss in Third Quarter
---------------------------------------------------------------
Mobivity Holdings Corp., formerly CommerceTel Corporation, filed
with the U.S. Securities and Exchange Commission its quarterly
report on Form 10-Q disclosing a net loss of $2.35 million on $1
million of revenue for the three months ended Sept. 30, 2012,
compared with a net loss of $1.57 million on $842,885 of revenue
for the same period during the prior year.
For the nine months ended Sept. 30, 2012, the Company reported a
net loss of $5.04 million on $3.02 million of revenue, compared
with a net loss of $3.88 million on $1.53 million of revenue for
the same period a year ago.
The Company's balance sheet at Sept. 30, 2012, showed $4.53
million in total assets, $11.10 million in total liabilities and a
$6.56 million total stockholders' deficit.
Bankruptcy Warning
"... all of our assets are currently subject to a first priority
lien in favor of the holders of our outstanding investment notes
in the current aggregate principal amount of $4,347,419. The
notes are due on April 15, 2013, if we are unable to repay or
refinance our obligations under those notes by April 15, 2013, the
holders of the notes will have the right to foreclose on their
security interests and seize our assets. To avoid such an event,
we may be forced to seek bankruptcy protection, however a
bankruptcy filing would, in all likelihood, materially adversely
affect our ability to continue our current level of operations.
In the event we are not able to refinance or repay the notes, but
negotiate for a further extension of the maturity date of the
notes, we may be required to pay significant extension fees in
cash of shares of our equity securities or otherwise make other
forms of concessions that may adversely impact the interests of
our common stockholders."
A copy of the Form 10-Q is available for free at:
http://is.gd/jkL1kA
About CommerceTel Corporation
CommerceTel Corporation, headquartered in Chandler, Ariz., is a
provider of technology that enables major brands and enterprises
to engage consumers via their mobile phone.
M&K CPAs, PLLC, in Houston, Texas, expressed substantial doubt
about CommerceTel Corporation's ability to continue as a going
concern, following the Company's results for the fiscal year ended
Dec. 31, 2011. The independent auditors noted that the Company
has incurred recurring operating losses and negative cash flows
from operations and is dependent on additional financing to fund
operations.
COMPREHENSIVE CARE: Posts $1 Million Net Income in Third Quarter
----------------------------------------------------------------
Comprehensive Care Corporation filed with the U.S. Securities and
Exchange Commission its quarterly report on Form 10-Q recording
net income of $1.03 million on $16.75 million of managed care
revenues for the three months ended Sept. 30, 2012, compared with
a net loss of $2.55 million on $17.20 million of managed care
revenues for the same period during the prior year.
For the nine months ended Sept. 30, 2012, Comprehensive Care
reported net income of $2.72 million on $52.76 million of managed
care revenues, compared with a net loss of $6.47 million on $54.03
million of managed care revenues for the same period a year ago.
Comprehensive Care reported a net loss of $14.08 million in 2011,
compared with a net loss of $10.47 million in 2010.
The Company's balance sheet at Sept. 30, 2012, showed $15.97
million in total assets, $29.35 million in total liabilities and a
$13.37 million deficit.
A copy of the Form 10-Q is available for free at:
http://is.gd/5f84dz
About Comprehensive Care
Tampa, Fla.-based Comprehensive Care Corporation provides managed
care services in the behavioral health, substance abuse, and
psychotropic pharmacy management fields.
Following the 2011 results, Mayer Hoffman McCann P.C., in
Clearwater, Florida, expressed substantial doubt about the
Company's ability to continue as a going concern. The independent
auditors noted that the Company has suffered recurring losses from
operations and has not generated sufficient cash flows from
operations to fund its working capital requirements.
CORD BLOOD: Incurs $1 Million Net Loss in Third Quarter
-------------------------------------------------------
Cord Blood America, Inc., filed with the U.S. Securities and
Exchange Commission its quarterly report on Form 10-Q disclosing
a net loss of $1.02 million on $1.51 million of revenue for the
three months ended Sept. 30, 2012, compared with a net loss of $1
million on $1.32 million of revenue for the same period during the
prior year.
For the nine months ended Sept. 30, 2012, the Company reported a
net loss of $2.14 million on $4.63 million of revenue, compared
with a net loss of $3.98 million on $3.92 million of revenue for
the same period during the preceding year.
Cord Blood reported a net loss attributable to the Company of
$5.97 million in 2011, compared with a net loss attributable
to the Company of $8.09 million in 2010.
The Company's balance sheet at Sept. 30, 2012, showed $7.31
million in total assets, $6 million in total liabilities and $1.31
million in total stockholders' equity.
A copy of the Form 10-Q is available for free at:
http://is.gd/PPrbwG
About Cord Blood America
Based in Las Vegas, Nevada, Cord Blood America, Inc., is primarily
a holding company whose subsidiaries include Cord Partners, Inc.,
CorCell Co. Inc., CorCell Ltd.; CBA Professional Services, Inc.
D/B/A BodyCells, Inc.; CBA Properties, Inc.; and Career Channel
Inc, D/B/A Rainmakers International. Cord specializes in
providing private cord blood stem cell preservation services to
families. BodyCells is a developmental stage company and intends
to be in the business of collecting, processing and preserving
peripheral blood and adipose tissue stem cells allowing
individuals to privately preserve their stem cells for potential
future use in stem cell therapy. Properties was formed to hold
the corporate trademarks and other intellectual property of CBAI.
Rain specializes in creating direct response television and radio
advertising campaigns, including media placement and commercial
production.
After auditing the 2011 results, Rose, Snyder & Jacobs, LLP, in
Encino, California, expressed substantial doubt substantial doubt
about the Company's ability to continue as a going concern. The
independent auditors noted that the Company has sustained
recurring operating losses, continues to consume cash in operating
activities, and has insufficient working capital and an
accumulated deficit at Dec. 31, 2011.
CORELOGIC INC: S&P Revises Outlook on 'BB' CCR on Stable Earning
----------------------------------------------------------------
Standard & Poor's Ratings Services revised the outlook on
CoreLogic Inc. to positive from stable. The 'BB' corporate credit
rating remains unchanged.
"The rating incorporates our expectation that CoreLogic's
leadership position in mortgage processing markets and focus on
reducing costs will support consistent profitability, partly
offset by the company's financial institution client concentration
and our expectation for lower U.S. mortgage originations over the
coming 12 months," said Standard & Poor's credit analyst John
Moore. "These all result in our 'fair' business risk score."
"The rating also reflects our view that leverage will remain in
the 2.5x range over the coming 12 months, supported by the
company's performance and cash deployment plans, resulting in our
financial risk assessment of 'significant,'" S&P said.
"Our positive outlook reflects our expectation that the company
will maintain earnings stability through mortgage origination
cycles and maintain moderate financial policies. We could raise
the ratings if CoreLogic demonstrates stable revenue and EBITDA
over the coming year, in which we expect a downturn in the
mortgage origination market, and maintains moderate financial
policies. Conversely, if we believe that the company is unlikely
to maintain revenue and EBITDA stability or moderate financial
policies, we could revise the outlook to stable," S&P said.
CREEKSIDE REALTY: Case Summary & 3 Unsecured Creditors
------------------------------------------------------
Debtor: Creekside Realty Ltd.
1975 US Highway 60 East
Morehead, KY 40351
Bankruptcy Case No.: 12-10494
Chapter 11 Petition Date: November 15, 2012
Court: U.S. Bankruptcy Court
Eastern District of Kentucky (Ashland)
Debtor's Counsel: Jamie L. Harris, Esq.
DELCOTTO LAW GROUP PLLC
200 North Upper Street
Lexington, KY 40507
Tel: (859) 231-5800
E-mail: jharris@dlgfirm.com
- and ?
Jean Clair Edwards, Esq.
DELCOTTO LAW GROUP PLLC
200 North Upper Street
Lexington, KY 40507
Tel: (859) 231-5800
E-mail: cedwards@dlgfirm.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 three largest unsecured
creditors filed with the petition is available for free at:
http://bankrupt.com/misc/kyeb12-10494.pdf
The petition was signed by Don Maher, general partner.
CREATIVE VISTAS: Incurs $214,000 Net Loss in Third Quarter
----------------------------------------------------------
Creative Vistas, Inc., filed with the U.S. Securities and Exchange
Commission its quarterly report on Form 10-Q disclosing a net loss
of $214,326 on $1.27 million of contract and service revenue for
the three months ended Sept. 30, 2012, compared with net income of
$11.64 million on $1.47 million of contract and service revenue
for the same period during the prior year.
For the nine months ended Sept. 30, 2012, the Company reported a
net loss of $465,365 on $4.12 million of contract and service
revenue, compared with net income of $11.64 million on $5.91
million of contract and service revenues for the same period a
year ago.
Creative Vistas' balance sheet at Sept. 30, 2012, showed
$3.31 million in total assets, $5.27 million in total liabilities
and a $1.95 million stockholders' deficiency.
A copy of the Form 10-Q is available for free at:
http://is.gd/17zkMg
About Creative Vistas
Headquartered in Whitby, Ontario, Canada, Creative Vistas, Inc.,
provides security-related technologies and systems. The Company
also provides the deployment of broadband services to the
commercial and residential market. The Company primarily operates
through its subsidiaries AC Technical Systems Ltd. and Iview
Digital Video Solutions Inc., to provide integrated electronic
security-related technologies and systems.
In its audit report for the year ended Dec. 31, 2011, results,
Kingery & Crouse, P.A., in Tampa, Florida, expressed substantial
doubt about the Company's ability to continue as a going concern.
The independent auditors noted that the Company has suffered
recurring losses from continuing operations and has working
capital and stockholder deficiencies.
CUBIC ENERGY: Incurs $1.7 Million Net Loss in Sept. 30 Quarter
--------------------------------------------------------------
Cubic Energy, Inc., filed with the U.S. Securities and Exchange
Commission its quarterly report on Form 10-Q disclosing a net loss
of $1.76 million on $1 million of total revenues for the three
months ended Sept. 30, 2012, compared with a net loss of $2.59
million on $1.41 million of total revenues for the same period
during the prior year.
Cubic Energy incurred a net loss of $12.49 million for the year
ended June 30, 2012, a net loss of $10.28 million for the year
ended June 30, 2011, and a net loss of $4.93 million for the year
ended June 30, 2010.
The Company's balance sheet at Sept. 30, 2012, showed $29.52
million in total assets, $39.45 million in total liabilities, all
current, and a $9.92 million total stockholders' deficit.
A copy of the Form 10-Q is available for free at:
http://is.gd/RJlmT9
About Cubic Energy
Cubic Energy, Inc., headquartered in Dallas, Tex., is an
independent upstream energy company engaged in the development and
production of, and exploration for, crude oil and natural gas.
Its oil and gas assets and activities are concentrated in
Louisiana.
The Company said in its quarterly report for the period ended
March 31, 2012, that, "Our debt to Wells Fargo, with a principal
amount of $35,000,000, is due on July 1, 2012, and the Wallen
Note, with a principal amount of $2,000,000, is due Sept. 30,
2012, and both are classified as a current debt. As of March 31,
2012, we had a working capital deficit of $33,162,110. This level
of negative working capital creates substantial doubt as to our
ability to pay our obligations as they come due and remain a going
concern. We are negotiating with Wells Fargo and Mr. Wallen to
extend the maturity date of these debts. There can be no
assurance that the Company will be able to negotiate such
extensions."
Philip Vogel & Co. PC, in Dallas, Texas, issued a "going concern"
qualification on the consolidated financial statements for the
year ended June 30, 2012. The independent auditors noted that the
Company has experienced recurring net losses from operations and
has uncertainty regarding its ability to meet its loan obligations
which raise substantial doubt about its ability to continue as a
going concern.
Bankruptcy Warning
"While we commenced a formal process to pursue strategic
alternatives, there can be no assurance that the process will
result in any transaction, or that, even if a transaction is
consummated that it will resolve our significant short-term
liquidity issues," the Company said in its annual report for the
year ended June 30, 2012. "Even if a potential transaction is
announced, no assurances can be given that such potential
transaction will have a positive effect on our stock price.
Additionally, if a transaction is announced but is not
consummated, our stock price may be adversely affected.
Restructuring, refinancing or extending the payment date of our
indebtedness likely will be necessary."
The Company added, "We are continuing to discuss potential
transactions with third parties and expect to engage in further
discussions with our lenders regarding extensions of the repayment
dates of our indebtedness. There can be no assurance that these
discussions will lead to a definitive agreement on acceptable
terms, or at all, with any party. Any transaction could be highly
dilutive to existing stockholders. If we are unsuccessful in
consummating a transaction or transactions that address our
liquidity issues, we could be required to seek protection under
the U.S. Bankruptcy Code."
CUMULUS MEDIA: Moody's Affirms 'B1' CFR; Outlook Negative
---------------------------------------------------------
Moody's Investors Service changed the rating outlook of Cumulus
Media Inc. to negative from stable following the company's 3rd
quarter 2012 earnings call. The negative outlook reflects the
potential for delays in achieving the collective turnaround of 10
underperforming stations and weakened liquidity given limited
access to its revolver facility. Moody's affirmed the B1 Corporate
Family Rating and Probability of Default Rating, but downgraded
the Speculative Grade Liquidity (SGL) Rating to SGL -- 3 from SGL
-- 2 to reflect reduced liquidity. All debt instrument ratings
were affirmed with updated loss given default (LGD) point
estimates, as outlined below.
Affirmed:
Issuer: Cumulus Media Inc.
Corporate Family Rating (CFR): Affirmed B1
Probability of Default Rating (PDR): Affirmed B1
Issuer: Cumulus Media Holdings Inc.
$300 million 1st lien sr secured revolver due September 2016:
Affirmed Ba2, LGD2 -- 22% (from LGD2 -- 20%)
1st lien sr secured term loan ($1,314 million outstanding)
due September 2018: Affirmed Ba2, LGD 2 -- 22% (from LGD2-
20%)
$790 million 2nd lien sr secured term loan due September
2019: Affirmed B2, LGD4 -- 66% (from LGD5 -- 70%)
$610 million 7.75% sr notes due May 2019: Affirmed B3, LGD5
-- 89% (from LGD6 -- 93%)
Downgraded:
Issuer: Cumulus Media Inc.
Speculative Grade Liquidity (SGL) Rating: Downgraded to SGL -
- 3 from SGL -- 2
Outlook Actions:
Issuer: Cumulus Media Inc.
Outlook, Changed to Negative from Stable
SUMMARY RATING RATIONALE
The company's B1 corporate family rating is forward looking and
reflects Moody's expectation that management will continue to
reduce debt balances with free cash flow resulting in net debt-to-
EBITDA ratios of less than 6.0x (including Moody's standard
adjustments, and treating preferred shares as 75% debt) over the
rating horizon, with further improvement thereafter consistent
with management's 4.0x reported leverage target. Debt-to-EBITDA
leverage of 6.7x estimated for December 31, 2012 falls outside the
rating category, but reflects improvement compared to 7.4x for LTM
March 31, 2012. Management took actions to reduce leverage by
selling non-core stations in exchange for larger market stations
plus $115 million in cash which was used to reduce debt balances.
In total, roughly $260 million of debt and preferred shares have
been repaid. Cumulus also completed steps to realize $52 million
of targeted synergies and has eliminated most of the uncertainties
related to assimilating significant acquisitions which closed in
the second half of 2011. Ratings incorporate the cyclical nature
of radio advertising demand evidenced by the revenue declines
suffered by radio broadcasters during the past recession and by
the sluggish growth witnessed following the downturn. Ratings are
pressured by challenges related to turning around weaker than
expected operating performance, more recently from 10 stations in
eight of its larger markets, in the face of increasing competition
for listenership from existing and new media. The company's
national scale, geographic and market size diversity as well as
expected run rate EBITDA margins greater than 38% (including
Moody's standard adjustments) support ratings. Looking forward,
Cumulus is expected to generate more than $200 million of annual
free cash flow, or 7% - 8% of debt balances, from its well-
clustered radio station portfolio that is effectively diversified
by programming formats and audience demographics. Although revenue
growth is expected to be flat in 2013 due in part to the absence
of significant political advertising, expected incremental expense
reductions provide some cushion to the extent revenues decline.
The outlook was changed to negative from stable due to the
potential for delays in achieving the collective turnaround of 10
underperforming stations and due to weakened liquidity as a result
of limited access to its revolver facility, absent an amendment to
the net leverage ratio test which steps down to 5.50x by December
31, 2013. The outlook incorporates Moody's expectations for
generally flat advertising revenue growth for the radio industry
in 2013 combined with challenges related to Cumulus' ability to
generate incremental EBITDA from new revenue streams as planned.
Ratings could be downgraded if Moody's believes that debt-to-
EBITDA ratios will be sustained above 6.0x (including Moody's
standard adjustments) beyond the rating horizon due to
deterioration in performance as a result of increased competition
in key markets, the inability to turn around underperforming
stations, an economic downturn, or audience and advertising
revenue migration to competing media platforms. Ratings could also
be downgraded if leveraging events such as debt financed
acquisitions result in debt-to-EBITDA ratios being sustained above
6.0x or if there is further deterioration in liquidity. The
outlook could be revised to stable if Moody's is assured that
leverage will track management's plan improving to less than 6.0x
and if liquidity is enhanced with good access to a revolver
facility in an acceptable amount or good levels of excess cash.
Recent Events
In October 2012, Cumulus signed a definitive agreement to purchase
WFME-FM with an upfront payment of $40 million, providing the
company with a third station in the New York City area. The
transaction is expected to close in the fourth quarter of 2012.
Cumulus could pay an additional $10 million if it decides to move
the signal to Manhattan from West Orange, NJ.
The principal methodology used in rating Cumulus was the Broadcast
and Advertising Industry Methodology published in May 2012. Other
methodologies used include Loss Given Default for Speculative-
Grade Non-Financial Companies in the U.S., Canada and EMEA
published in June 2009.
Headquartered in Atlanta, GA, Cumulus Media Inc. is the largest
pure-play radio broadcaster in the U.S. with approximately 525
stations in 110 markets and nationwide radio networks serving over
4,000 stations. Cumulus is publicly traded with Crestview Radio
Investors, LLC owning an estimated 27.5% interest adjusted for the
exercise of penny warrants. The Dickey family owns 8.2% with
Canyon Capital Advisors LLC owning roughly 11%, and the remainder
being widely held. Net revenues pro forma for acquisitions and
divestitures totaled approximately $1.1 billion for LTM September
30, 2012.
DELTATHREE INC: Incurs $401,000 Net Loss in Third Quarter
---------------------------------------------------------
deltathree, Inc., filed with the U.S. Securities and Exchange
Commission its quarterly report on Form 10-Q disclosing a net loss
of $401,000 on $3.52 million of revenue for the three months ended
Sept. 30, 2012, compared with a net loss of $872,000 on $2.21
million of revenue for the same period during the prior year.
For the nine months ended Sept. 30, 2012, the Company reported a
net loss of $1.29 million on $9.77 million of revenue, compared
with a net loss of $2.46 million on $8.20 million of revenue for
the same period during the preceding year.
The Company reported a net loss of $3.05 million in 2011, a net
loss of $2.49 million in 2010, and a net loss of $3.19 million in
2009.
The Company's balance sheet at Sept. 30, 2012, showed $1.81
million in total assets, $7.41 million in total liabilities and a
$5.60 million total stockholders' deficiency.
Mr. Effi Baruch, chief executive officer, president and senior
vice president of operations and Technology of deltathree, stated,
"deltathree continues to focus its near-term strategy and market
initiatives on growing the company's service provider and digital
next generation communications offering while continuing to drive
deltathree's core VoIP reseller and direct-to-consumer business
groups. As we look ahead, the amendment to our loan and security
agreements with our majority stockholder which we are announcing
today provides additional flexibility and reflects the confidence
it has in deltathree."
A copy of the Form 10-Q is available for free at:
http://is.gd/CY3m88
About deltathree
Based in New York, deltathree, Inc. (OTC QB: DDDC) --
http://www.deltathree.com/-- is a global provider of video and
voice over Internet Protocol (VoIP) telephony services, products,
hosted solutions and infrastructures for service providers,
resellers and direct consumers.
After auditing the 2011 results, Brightman Almagor Zohar & Co.,
noted that Company's recurring losses from operations and
deficiency in stockholders' equity raise substantial doubt about
its ability to continue as a going concern.
Bankruptcy Warning
"In view of the Company's current cash resources, nondiscretionary
expenses, debt and near term debt service obligations, the Company
may begin to explore all strategic alternatives available to it,
including, but not limited to, a sale or merger of the Company, a
sale of its assets, recapitalization, partnership, debt or equity
financing, voluntary deregistration of its securities, financial
reorganization, liquidation and/or ceasing operations," the
Company said in its quarterly report for the period ended June 30,
2012. "In the event that the Company requires but is unable to
secure additional funding, the Company may determine that it is in
its best interests to voluntarily seek relief under Chapter 11 of
the U.S. Bankruptcy Code."
DICKINSON THEATRES: Blue Springs 8 Theatre Has New Operator
-----------------------------------------------------------
Jeff Fox at The Examiner reports that Colorado Mountain Cinemas
took over the Blue Springs 8 Theatre in Blue Springs, Missouri, a
month ago from Dickinson Theatres. Dickinson has closed some
sites following its bankruptcy filing.
Based in Overland Park, Kansas, Dickinson Theatres, Inc., filed
for Chapter 11 protection on Sept. 21, 2012 (Bankr. D. Kan. Case
No. 12-22602). Judge Dale L. Somers presides over the case.
Sharon L. Stolte, Esq., at Stinson Morrison & Hecker L.L.P.,
represents the Debtor. The Debtor listed assets of $2,198,081,
and liabilities of $7,617,413.
DONNA JEAN: Case Summary & 3 Unsecured Creditors
------------------------------------------------
Debtor: Donna Jean Apartment Associates, L.P.
c/o Martin Wolf
P.O. Box 2141
Norwalk, CT 06852
Bankruptcy Case No.: 12-20736
Chapter 11 Petition Date: November 16, 2012
Court: United States Bankruptcy Court
Eastern District of Pennsylvania (Philadelphia)
Judge: Bruce I. Fox
Debtor's Counsel: David A. Scholl, Esq.
LAW OFFICE OF DAVID A. SCHOLL
512 Hoffman Street
Philadelphia, PA 19148
Tel: (610) 550-1765
E-mail: judgescholl@gmail.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 three unsecured creditors
filed together with the petition is available for free at
http://bankrupt.com/misc/paeb12-20736.pdf
The petition was signed by Martin Wolf, president of Economic
Enterprises, Inc., general partner.
EASTMAN KODAK: District Judge Dismisses Shareholders' Lawsuit
-------------------------------------------------------------
Jonathan Stempel at Reuters reported that U.S. District Judge
Harold Baer ruled that Eastman Kodak Co. executives did not
mislead investors about the photography pioneer's deteriorating
financial health in the year prior to its bankruptcy.
According to Reuters, Judge Baer has dismissed a shareholder
lawsuit against Chief Executive Antonio Perez and three former
Kodak executives. Other defendants included former chief
operating officer Philip Faraci; former chief financial officer
Antoinette McCorvey; and Pradeep Jotwani, a former president of
Kodak's consumer businesses. The company was not a defendant
because it is in Chapter 11.
The report said shareholders led by Bret Jones, who claimed to
have lost $720,384 by investing in Kodak stock, accused the
company of making false and misleading statements that suggested
optimism it would become profitable, maintain sufficient
liquidity, and sell a digital patent portfolio once thought to be
worth as much as $3 billion. The report notes the shareholders
also said that in the four months leading up to Kodak's Jan. 19,
2012 bankruptcy filing, the company misled investors about its
intention to seek protection from creditors.
According to the report, Judge Baer concluded, however, that there
was no showing that the executives intended to defraud anyone, and
indeed they had used their "best efforts" to successfully
transform the company. The judge said there are "serious policy
reasons" not to force nearly-insolvent companies to disclose their
plans too soon. "No multi-billion dollar company would file for
bankruptcy without first engaging in internal deliberations," he
said.
According to the report, Judge Baer added that many of the alleged
fraudulent statements, including Mr. Perez's expression of
confidence on Feb. 3, 2011 that Kodak would transform into a
"sustainable, profitable company," were too general for reasonable
investors to rely on.
The report noted that the class period ran from Jan. 26, 2011 to
Jan. 19, 2012, during which Kodak's share price fell to 30 cents
from nearly $4. Kodak shares once traded above $94.
About Eastman Kodak
Rochester, New York-based Eastman Kodak Company and its U.S.
subsidiaries on Jan. 19, 2012, filed voluntarily Chapter 11
petitions (Bankr. S.D.N.Y. Lead Case No. 12-10202) in Manhattan.
Subsidiaries outside of the U.S. were not included in the filing
and are expected to continue to operate as usual.
Kodak, founded in 1880 by George Eastman, was once the world's
leading producer of film and cameras. Kodak sought bankruptcy
protection amid near-term liquidity issues brought about by
steeper-than-expected declines in Kodak's historically profitable
traditional businesses, and cash flow from the licensing and sale
of intellectual property being delayed due to litigation tactics
employed by a small number of infringing technology companies with
strong balance sheets and an awareness of Kodak's liquidity
challenges.
In recent years, Kodak has been working to transform itself from a
business primarily based on film and consumer photography to a
smaller business with a digital growth strategy focused on the
commercialization of proprietary digital imaging and printing
technologies. Kodak has 8,900 patent and trademark registrations
and applications in the United States, as well as 13,100 foreign
patents and trademark registrations or pending registration in
roughly 160 countries.
Attorneys at Sullivan & Cromwell LLP and Young Conaway Stargatt &
Taylor, LLP, serve as counsel to the Debtors. FTI Consulting,
Inc., is the restructuring advisor. Lazard Freres & Co. LLC, is
the investment banker. Kurtzman Carson Consultants LLC is the
claims agent.
The Official Committee of Unsecured Creditors has tapped
Milbank, Tweed, Hadley & McCloy LLP, as its bankruptcy counsel.
Michael S. Stamer, Esq., David H. Botter, Esq., and Abid Qureshi,
Esq., at Akin Gump Strauss Hauer & Feld LLP, represent the
Unofficial Second Lien Noteholders Committee.
Robert J. Stark, Esq., Andrew Dash, Esq., and Neal A. D'Amato,
Esq., at Brown Rudnick LLP, represent Greywolf Capital Partners
II; Greywolf Capital Overseas Master Fund; Richard Katz, Kenneth
S. Grossman; and Paul Martin.
EASTMAN KODAK: 2nd Lien Lenders Oppose Quick Hearing on New Loan
----------------------------------------------------------------
Bill Rochelle, the bankruptcy columnist for Bloomberg News,
reports that second-lien lenders who were passed over when Eastman
Kodak Co. decided who would provide new financing says there is no
emergency requiring Eastman Kodak to hold a hearing on Nov. 29 for
approval of an additional $793 million loan.
According to the report, at the end of last week, the creditors'
committee sued second-lien lenders and Kodak. The creditors'
committee filed a lawsuit in bankruptcy court on Nov. 16 alleging
that the $750 million in second-lien notes don't have valid
security interests in patent infringement claims, foreign patents,
and some of Kodak's 200 bank accounts. The bankruptcy judge
allowed the committee to sue on Nov. 16. Kodak didn't object
since financing for the Chapter 11 case precluded the company from
suing.
The report relates that last week, Kodak disclosed details about
the new loan and requested an accelerated hearing on Nov. 29 for
approval of commitment fees. Kodak wants a quick hearing because
the prospective lenders require fee approval by Nov. 30. Second
lien-lenders offering the new loan are Centerbridge Capital
Partners, GSO Capital Partners, UBS AG and JPMorgan Chase & Co.
Kodak said last week it received a competing financing proposal
from another group of second-lien lenders consisting of Archview
Investment Group LP, Bennett Management Corp., D.E. Shaw Laminar
Portfolios LLC and Litespeed Master Fund Ltd. The competing
proposal wasn't so favorable, Kodak said.
According to the report, last week, an ad hoc group of second-lien
lenders, including those passed over as lenders, filed papers
telling the bankruptcy judge there is no emergency. The ad hoc
group, which owns 61% of the second-lien debt, says the new loan
shouldn't be considered until a hearing on Dec. 19. The rebuffed
lenders say there is no rush because Kodak hasn't violated the
existing $950 million loan and the company doesn't need more
financing for "many months." A quick hearing, they say, won't
give them time for an investigation, given the intervening
Thanksgiving holiday. The competing lenders object to the new
loan because it won't allow them to participate in the rollup,
where $375 million of existing second-lien debt will be converted
to a new loan coming ahead of previously existing obligations.
Kodak said in September that it won't sell the portfolio of
digital-imaging technology now. Instead, the company intends to
focus on the commercial printing business and said it might exit
Chapter 11 while continuing to license the imaging technology.
Kodak's $400 million in 7% convertible notes due in 2017 traded on
Nov. 14 for 10 cents on the dollar, according to Trace, the bond-
price reporting system of the Financial Industry Regulatory
Authority.
About Eastman Kodak
Rochester, New York-based Eastman Kodak Company and its U.S.
subsidiaries on Jan. 19, 2012, filed voluntarily Chapter 11
petitions (Bankr. S.D.N.Y. Lead Case No. 12-10202) in Manhattan.
Subsidiaries outside of the U.S. were not included in the filing
and are expected to continue to operate as usual.
Kodak, founded in 1880 by George Eastman, was once the world's
leading producer of film and cameras. Kodak sought bankruptcy
protection amid near-term liquidity issues brought about by
steeper-than-expected declines in Kodak's historically profitable
traditional businesses, and cash flow from the licensing and sale
of intellectual property being delayed due to litigation tactics
employed by a small number of infringing technology companies with
strong balance sheets and an awareness of Kodak's liquidity
challenges.
In recent years, Kodak has been working to transform itself from a
business primarily based on film and consumer photography to a
smaller business with a digital growth strategy focused on the
commercialization of proprietary digital imaging and printing
technologies. Kodak has 8,900 patent and trademark registrations
and applications in the United States, as well as 13,100 foreign
patents and trademark registrations or pending registration in
roughly 160 countries.
Attorneys at Sullivan & Cromwell LLP and Young Conaway Stargatt &
Taylor, LLP, serve as counsel to the Debtors. FTI Consulting,
Inc., is the restructuring advisor. Lazard Freres & Co. LLC, is
the investment banker. Kurtzman Carson Consultants LLC is the
claims agent.
The Official Committee of Unsecured Creditors has tapped
Milbank, Tweed, Hadley & McCloy LLP, as its bankruptcy counsel.
Michael S. Stamer, Esq., David H. Botter, Esq., and Abid Qureshi,
Esq., at Akin Gump Strauss Hauer & Feld LLP, represent the
Unofficial Second Lien Noteholders Committee.
Robert J. Stark, Esq., Andrew Dash, Esq., and Neal A. D'Amato,
Esq., at Brown Rudnick LLP, represent Greywolf Capital Partners
II; Greywolf Capital Overseas Master Fund; Richard Katz, Kenneth
S. Grossman; and Paul Martin.
EASTMAN KODAK: Reaches Settlement With CVS Pharmacy
---------------------------------------------------
Bill Rochelle, the bankruptcy columnist for Bloomberg News,
reports that Eastman Kodak Co. reached a settlement with CVS
Pharmacy Inc.
According to the report, Kodak filed papers on Nov. 16 looking for
approval of a settlement with CVS, the largest pharmacy operator
in the U.S. and the largest customer for Kodak's consumer photo-
printing business.
The report relates that where Kodak claimed CVS owed $10.9
million, CVS claimed it was owed $11.4 million. If a settlement
is approved by the bankruptcy court at a Dec. 7 hearing, CVS will
pay Kodak $6.4 million in cash while Kodak will give CVS an
approved unsecured claim for $18.4 million.
CVS also agreed to a four-year extension of the kiosk contract
that otherwise would end Dec. 31. CVS has 16,000 of Kodak's
105,000 kiosks. Kodak is negotiating for a sale of the business.
About Eastman Kodak
Rochester, New York-based Eastman Kodak Company and its U.S.
subsidiaries on Jan. 19, 2012, filed voluntarily Chapter 11
petitions (Bankr. S.D.N.Y. Lead Case No. 12-10202) in Manhattan.
Subsidiaries outside of the U.S. were not included in the filing
and are expected to continue to operate as usual.
Kodak, founded in 1880 by George Eastman, was once the world's
leading producer of film and cameras. Kodak sought bankruptcy
protection amid near-term liquidity issues brought about by
steeper-than-expected declines in Kodak's historically profitable
traditional businesses, and cash flow from the licensing and sale
of intellectual property being delayed due to litigation tactics
employed by a small number of infringing technology companies with
strong balance sheets and an awareness of Kodak's liquidity
challenges.
In recent years, Kodak has been working to transform itself from a
business primarily based on film and consumer photography to a
smaller business with a digital growth strategy focused on the
commercialization of proprietary digital imaging and printing
technologies. Kodak has 8,900 patent and trademark registrations
and applications in the United States, as well as 13,100 foreign
patents and trademark registrations or pending registration in
roughly 160 countries.
Attorneys at Sullivan & Cromwell LLP and Young Conaway Stargatt &
Taylor, LLP, serve as counsel to the Debtors. FTI Consulting,
Inc., is the restructuring advisor. Lazard Freres & Co. LLC, is
the investment banker. Kurtzman Carson Consultants LLC is the
claims agent.
The Official Committee of Unsecured Creditors has tapped
Milbank, Tweed, Hadley & McCloy LLP, as its bankruptcy counsel.
Michael S. Stamer, Esq., David H. Botter, Esq., and Abid Qureshi,
Esq., at Akin Gump Strauss Hauer & Feld LLP, represent the
Unofficial Second Lien Noteholders Committee.
Robert J. Stark, Esq., Andrew Dash, Esq., and Neal A. D'Amato,
Esq., at Brown Rudnick LLP, represent Greywolf Capital Partners
II; Greywolf Capital Overseas Master Fund; Richard Katz, Kenneth
S. Grossman; and Paul Martin.
EDISON MISSION: Has 30 Days to Work Out Deal With Bondholders
-------------------------------------------------------------
Julie Wernau at Chicago Tribune reports that the owner of six
coal-fired power plants in Illinois has 30 days to work out an
agreement with its bondholders or it will be forced to file for
bankruptcy protection.
According to the report, Edison International, the holding company
for Edison Mission Energy, whose subsidiary is coal plant owner
Midwest Generation, did not to make $97 million in interest
payments that came due November 15, triggering a 30-day grace
period before the company is in default.
The report relates, if Edison Mission Energy doesn't pay before
Dec. 17, bondholders can demand immediately the entire principal
and interest of bonds that mature in 2017, 2019 and 2027.
The report notes Edison International said the company is in
ongoing discussions with bondholders' about a potential
restructuring so Edison Mission Energy can avoid to avoid filing
for bankruptcy protection under Chapter 11.
Edison Mission Energy -- http://www.edison.com/-- owns power
plants in Powerton (Pekin), Joliet, Waukegan and Will County
(Romeoville), in addition to the shuttered Crawford and Fisk coal
plants in Chicago, has said it would operate normally while it
restructures.
EDISON MISSION: S&P Cuts CCR to 'D' on Missed Interest Payment
--------------------------------------------------------------
Standard & Poor's Ratings Services lowered its corporate credit
rating on Edison Mission Energy (EME) to 'D' from 'CCC' and its
subsidiaries Midwest Generation LLC (Midwest Gen) and Edison
Mission Marketing & Trading Inc. (EMMT), to 'CCC-' from 'CCC'. The
outlook for Midwest Gen and EMMT is negative.
"We lowered the issue rating on EME's 2017, 2019, and 2027 bond
ratings to 'D' from 'CCC'and lowered the rating on EME's 2013 and
2016 bonds to 'CCC-' from 'CCC'. Recovery scores are unchanged for
EME's bonds at '3' indicating meaningful recovery of principal of
50% to 70%," S&P said.
"We lowered Midwest Gen's senior secured debt to 'CCC+' from 'B-',
but left unchanged our '1' recovery score, indicating very high
recovery prospects of 90% to 100%," S&P said.
"EME's election not to pay interest despite a large cash balance
reflects that EME will likely restructure, just as its parent
Edison International (EIX; BBB-/Stable) has been saying for quite
some time, and it appears that EME will be willing to file for
Chapter 11 protection without developing a pre-packaged plan with
a large majority of lenders as others in the electricity industry
have done lately," S&P said.
"We lowered EME's rating to 'D' rather than 'SD' because we think
the company will continue to default on other debt repayment
obligations. Although EME remains current on payments on its 2013
and 2016 bonds, we think it highly likely that EME will not pay
interest on those securities when due. The next payment for the
2016 notes is Dec. 17, 2012," S&P said.
"EME is in distress due to continued lower prices for its coal
units in the Midwest and the high capital spending to meet
environmental emissions requirements--about $520 million in 2012-
2014 and more thereafter," said Standard & Poor's credit analyst
Terry Pratt.
"Additional stress comes from the lack of payments from parent EIX
under the tax allocation agreement due to how federal stimulus tax
provisions temporarily affected tax allocations. In fact, EME
recently paid $185 million to EIX under their tax-allocation
agreement. The forward value to EME of these tax-allocation
payments is very substantial; a change of control of EME from EIX
could lead to a termination of the tax-allocation agreement and
substantial value loss for EME, adding another interesting element
to the proceedings," S&P said.
ELJEN CORP.: Voluntary Chapter 11 Case Summary
----------------------------------------------
Debtor: Eljen Corp.
2605 Stearns Hill Road
Waltham, MA 02451
Bankruptcy Case No.: 12-19105
Chapter 11 Petition Date: November 15, 2012
Court: U.S. Bankruptcy Court
District of Massachusetts (Boston)
Judge: Henry J. Boroff
Debtor's Counsel: Nina M. Parker, Esq.
PARKER & ASSOCIATES
10 Converse Place
Winchester, MA 01890
Tel: (781) 729-0005
Fax: (781) 729-0187
E-mail: nparker@ninaparker.com
Estimated Assets: $0 to $50,000
Estimated Debts: $1,000,001 to $10,000,000
The Company did not file a list of creditors together with its
petition.
The petition was signed by Gerald Goldsmith, president, director
and sole officer.
EPICEPT CORP: Incurs $1.1 Million Net Loss in Third Quarter
-----------------------------------------------------------
EpiCept Corporation filed with the U.S. Securities and Exchange
Commission its quarterly report on Form 10-Q disclosing a net loss
of $1.13 million on $871,000 of total revenue for the three months
ended Sept. 30, 2012, compared with a net loss of $5.39 million on
$275,000 of total revenue for the same period during the prior
year.
For the nine months ended Sept. 30, 2012, the Company reported a
net loss of $1.70 million on $7.71 million of total revenue,
compared with a net loss of $12.20 million on $737,000 of total
revenue for the same period during the prior year.
Epicept reported a net loss of $15.65 million in 2011, a net loss
of $15.53 million in 2010, and a net loss of $38.81 million in
2009.
The Company's balance sheet at Sept. 30, 2012, showed $2.86
million in total assets, $16.03 million in total liabilities and a
$13.16 million in total stockholders' deficit.
Robert Cook, interim president and CEO of EpiCept, commented,
"During the third quarter we focused our attention on concluding
an agreement with a merger partner that is interested in our
products and in implementing a strategy to enable AmiKet to
realize value for the Company's shareholders. We are enthusiastic
about the proposed merger with Immune Pharmaceuticals as we
believe the combined company will provide EpiCept's shareholders
with a broad, attractive portfolio of product candidates that
address unmet medical needs and have significant market potential.
Monoclonal antibodies, a field in which Immune Pharmaceuticals has
particular expertise, are an exciting area for pharmaceutical
development. We are pleased that the combined company intends to
re-energize EpiCept's efforts to obtain a partner to pursue the
Phase III development of AmiKet. Additionally, we believe that
EpiCept's vascular disruption agents Azixa and crolibulin are
promising, targeted oncology drug candidates that may further
benefit from Immune Pharmaceuticals' expertise in
nanotherapeutics."
A copy of the Form 10-Q is available for free at:
http://is.gd/CAHmKb
About EpiCept Corporation
Tarrytown, N.Y.-based EpiCept Corporation (Nasdaq and Nasdaq OMX
Stockholm Exchange: EPCT) -- http://www.epicept.com/-- is focused
on the development and commercialization of pharmaceutical
products for the treatment of cancer and pain. The Company's lead
product is Ceplene(R), approved in the European Union for the
remission maintenance and prevention of relapse in adult patients
with Acute Myeloid Leukemia (AML) in first remission. In the
United States, a pivotal trial is scheduled to commence in 2011.
The Company has two other oncology drug candidates currently in
clinical development that were discovered using in-house
technology and have been shown to act as vascular disruption
agents in a variety of solid tumors. The Company's pain portfolio
includes EpiCept(TM) NP-1, a prescription topical analgesic cream
in late-stage clinical development designed to provide effective
long-term relief of pain associated with peripheral neuropathies.
In the auditors' report accompanying the financial statements for
year ended Dec. 31, 2011, Deloitte & Touche LLP, in Parsippany,
New Jersey, noted that the Company's recurring losses from
operations and stockholders' deficit raise substantial doubt about
its ability to continue as a going concern.
FELIX'S RESTAURANT: Price Rises to $2.1 Million at Auction
----------------------------------------------------------
Bill Rochelle, the bankruptcy columnist for Bloomberg News,
reports a bankruptcy auction resulted in a 50% increase in price
for Felix's Restaurant & Oyster Bar in New Orleans's French
Quarter. The restaurant, at the intersection of Iberville and
Bourbon streets, originally came to court with a buyer signed up
for $1.4 million. The successful purchaser is paying $2.1 million
under a contract approved Nov. 16 by the bankruptcy court in New
Orleans. The sale included the lease, trademarks, furniture,
fixtures and equipment.
The report notes that creditors were told in a court filing that a
sale at $1.4 million would generate $610,000 for unsecured
creditors, providing a 10% recovery. If the auction went for
$1.6 million, a court filing said the recovery would rise to 33%.
Felix's Inc., owner of the namesake restaurant and oyster bar in
New Orleans's French Quarter, sought bankruptcy protection from
creditors (Bankr. E.D. La. Case No. 12-12137). Felix's Inc. filed
the bare-bones petition on July 19, 2012, without a lawyer.
The company disclosed assets of $1.62 million and debt of
$1.57 million. Felix's has been a New Orleans landmark since the
early 1900s and has been owned by the same family for more than
60 years, according to its Web site.
GCI INC: S&P Revises Outlook on 'BB-' Corp. Credit Rating to Neg
----------------------------------------------------------------
Standard & Poor's Ratings Services revised its outlook on
Anchorage-based diversified telecommunications provider GCI Inc.
to negative from stable. "At the same time, we affirmed the 'BB-'
corporate credit rating and most other ratings on the company,"
S&P said.
"In addition, we are lowering the issue-level rating on GCI's
senior unsecured debt to 'B+' from 'BB-' and revising the recovery
rating to '5', which indicates expectations for modest (10% to
30%) recovery in the event of payment default, from '4', which
represented expectations for average (30% to 50%) recovery. We
revised the recovery rating based on our expectation that GCI will
raise at least $100 million of incremental senior secured debt to
fund its payment to Alaska Communications Systems Group (ACS) as
part of their joint venture wireless agreement, which will dilute
recovery prospects for senior unsecured debt holders," S&P said.
"The outlook revision reflects the possibility that adjusted
leverage could rise to over 5x by the end of 2013 from about 4.6x
as of Sept. 30, 2012," said Standard & Poor's credit analyst Allyn
Arden. "This could prompt us to revise out assessment of GCI's
financial risk profile to 'highly leveraged,' from the current
'aggressive,' which could result in a downgrade. Our adjusted
leverage calculation includes the EBITDA from GCI's businesses
outside of the proposed wireless joint venture with ACS as well as
the EBITDA contribution from the wireless partnership less the
preferential cash distribution to ACS, which will be about $50
million per year for the first two years of operations and $45
million in the next two years, subject to certain penalties based
on customer losses."
"The negative outlook also incorporates the added risk that the
joint venture partnership contributes in terms of GCI's future
cash flow generation, based on our expectation for declining
roaming revenue from ACS's wireless business, fewer high-margin
lifeline wireless customers in GCI's retail business, declining
subsidy revenue, and the priority of distributions in the first
few years of the joint venture," S&P said.
"We could lower the ratings if GCI experiences execution missteps
at the wireless partnership or if revenue and EBITDA decline in
other segments such that leverage rises above 5x on a sustained
basis. Although we consider it unlikely in the near term, if GCI
is successful in growing free operating cash flow at the wireless
joint venture and its revenue growth from cable and the managed
broadband businesses can offset declines in other segments, such
that leverage remains below 5x, we could revise the outlook to
stable," S&P said.
FLORIDA GAMING: Incurs $4.6 Million Net Loss in Third Quarter
-------------------------------------------------------------
Florida Gaming Corporation filed with the U.S. Securities and
Exchange Commission its quarterly report on Form 10-Q disclosing
a net loss of $4.65 million on $17.26 million of net revenues for
the three months ended Sept. 30, 2012, compared with a net loss of
$5.61 million on $1.83 million of net revenues for the same period
during the preceding year.
For the nine months ended Sept. 30, 2012, the Company reported a
net loss of $11.43 million on $50.34 million of net revenues,
compared with a net loss of $11.98 million on $7.28 million of net
revenues for the same period a year ago.
The Company's balance sheet at Sept. 30, 2012, showed $77.40
million in total assets, $116.43 million in total liabilities and
a $39.02 million total stockholders' deficit.
A copy of the Form 10-Q is available for free at:
http://is.gd/lotF50
About Florida Gaming
Florida Gaming Corporation operates live Jai Alai games at
frontons in Ft. Pierce, and Miami, Florida through its Florida
Gaming Centers, Inc. subsidiary. The Company also conducts
intertrack wagering (ITW) on jai alai, horse racing and dog racing
from its facilities. Poker is played at the Miami and Ft. Pierce
Jai-Alai, and dominoes are played at the Miami Jai-Alai. In
addition, the Company operates Tara Club Estates, Inc., a
residential real estate development located near Atlanta in Walton
County, Georgia. Approximately 46.2% of the Company's common
stock is controlled by the Company's Chairman and CEO either
directly or beneficially through his ownership of Freedom Holding,
Inc. The Company is based in Miami, Florida.
The Company reported a net loss of $21.76 million in 2011,
compared with a net loss of $4.84 million in 2010.
As of June 30, 2012, the Company was in default on an $87,000,000
credit agreement regarding certain covenants. The Company's
continued existence as a going concern is dependent on its ability
to obtain a waiver of its credit default and to generate
sufficient cash flow from operations to meet its obligations.
After auditing the 2011 results, King & Company, PSC, in
Louisville, Kentucky, noted that the Company has experienced
recurring losses from operations, cash flow deficiencies, and is
in default of certain credit facilities, all of which raise
substantial doubt about its ability to continue as a going
concern.
GK MANAGEMENT: Case Summary & 20 Unsecured Creditors
----------------------------------------------------
Debtor: GK Management, Inc.
2095 Highway 211, NW, Suite 2F 362
Braselton, GA 30517
Bankruptcy Case No.: 12-23945
Chapter 11 Petition Date: November 15, 2012
Court: U.S. Bankruptcy Court
Northern District of Georgia (Gainesville)
Judge: Robert Brizendine
Debtor's Counsel: Laura E. Woodson, Esq.
SCROGGINS & WILLIAMSON
1500 Candler Building
127 Peachtree Street
Atlanta, GA 30303
Tel: (404) 893-3880
Fax: (404) 893-3886
E-mail: lwoodson@swlawfirm.com
Estimated Assets: $0 to $50,000
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/ganb12-23945.pdf
The petition was signed by James Dean Graves, chief financial
officer.
FUSION TELECOMMUNICATIONS: Incurs $1.6MM Net Loss in 3rd Quarter
----------------------------------------------------------------
Fusion Telecommunications International, Inc., filed with the U.S.
Securities and Exchange Commission its quarterly report on Form
10-Q disclosing a net loss of $1.63 million on $9.95 million of
revenue for the three months ended Sept. 30, 2012, compared with a
net loss of $1.11 million on $9.93 million of revenue for the same
period during the prior year.
The Company reported a net loss of $3.65 million on $31.71 million
of revenue for the nine months ended Sept. 30, 2012, compared with
a net loss of $3.54 million on $30.77 million of revenue for the
same period a year ago.
The Company's balance sheet at Sept. 30, 2012, showed $7.36
million in total assets, $20.24 million in total liabilities and a
$12.88 million total stockholders' deficit.
A copy of the Form 10-Q is available for free at:
http://is.gd/pxH3Bs
About Fusion Telecommunications
New York City-based Fusion Telecommunications International, Inc.
(OTC BB: FSNN) is a provider of Internet Protocol ("IP") based
digital voice and data communications services to corporations and
carriers worldwide.
The Company reported a net loss of $4.45 million in 2011, compared
with a net loss of $5.79 million in 2010.
At June 30 2012, the Company had a working capital deficit of
$12.6 million and an accumulated deficit of $151.5 million. The
Company has continued to sustain losses from operations and has
not generated positive cash flow from operations since inception.
Management is aware that its current cash resources are not
adequate to fund its operations for the remainder of the year.
During the six months ended June 30, 2012, the Company raised
approximately $1.1 million, net of expenses, from the sale of the
Company's equity securities.
In its audit report on the 2011 financial statements, Rothstein,
Kass & Company, P.C., in Roseland, New Jersey, noted that the
Company has had negative working capital balances, incurred
negative cash flows from operations and net losses since
inception, and has limited capital to fund future operations that
raises a substantial doubt about their ability to continue as a
going concern.
GNP RLY: Court Approves Asset Sale to Former CFO
------------------------------------------------
C.B. Hall at Crosscut.com reports that, in late September, a
federal bankruptcy court approved the sale of GNP RLY Inc.'s
assets to Douglas Engle, the company's former CFO.
According to the report, Iowa Pacific Holdings of Chicago, which
owns several small passenger and freight operations, had abruptly
dropped out of the bidding process, explaining that court-
appointed Chapter 11 trustee Perry Stacks "has apparently endorsed
a cash bid by Mr. Douglas Engle."
The report relates Iowa Pacific declined to comment for the
Crosscut.com article, but Mr. Stacks speculated that the company
bowed out of the Eastside process because of the challenges of
dealing with the city of Kirkland, which intends to tear up the
5.75 miles of the line that it now owns, and with the bankruptcy
process. Mr. Stacks told Crosscut that he had in fact invited the
company to make a bid.
The report notes, either way, Mr. Engle became the only
prospective buyer. "The railroad was going to stop running, or it
was going to be sold [to Engle]," Mr. Stacks said.
The report relates Mr. Engle is paying $175,000 for the operation
and has until mid-December to close on the purchase. If it falls
through, Stacks will retain $100,000 of the $175,000 to keep the
operation rolling for the time being. "This will give us time to
find another buyer," Mr. Stacks explained.
The report, citing an interview, notes Mr. Engle distanced himself
from GNP and the other two principals in the defunct company. "We
had financing in hand, and due to unethical actions by Tom Payne
and Tom Jones, the deal fell apart, and I left the company." Mr.
Engle did not elaborate on his charge, which Messrs. Payne and
Jones declined to comment on.
Noah Haglund, writing for The Herald Business Journal, reported in
June 2011 that U.S. Bankruptcy Judge Brian D. Lynch ruled June 7
that GNP RLY owes creditors at least a half-million dollars. The
report says GNP, which owns no locomotives or railroad cars, does
have a permanent easement to run freight trains between Snohomish
and Woodinville.
Creditors in February 2011 filed a petition to force the company
into involuntary bankruptcy. The petitioning creditors include
the Ballard Terminal Railroad Co., which runs freight trains on
behalf of GNP on the Snohomish-Woodinville route.
GRAYMARK HEALTHCARE: Incurs $2.3 Million Net Loss in 3rd Quarter
----------------------------------------------------------------
Graymark Healthcare, Inc., filed with the U.S. Securities and
Exchange Commission its quarterly report on Form 10-Q disclosing
a net loss of $2.27 million on $4.29 million of net revenues for
the three months ended Sept. 30, 2012, compared with a net loss of
$1.58 million on $4.48 million of net revenues for the same period
during the prior year.
For the nine months ended Sept. 30, 2012, the Company reported a
net loss of $9.56 million on $12.96 million of net revenues,
compared with a net loss of $4.10 million on $13.09 million of net
revenues for the same period a year ago.
The Company's balance sheet at Sept. 30, 2012, showed $19.68
million in total assets, $24.29 million in total liabilities and a
$4.60 million total deficit.
As of Sept. 30, 2012, the Company had an accumulated deficit of
approximately $44.5 million and reported a net loss of
approximately $9.4 million for the nine months then ending. In
addition, the Company used approximately $3.7 million in cash from
operating activities from continuing operations during the nine
months ending Sept. 30, 2012. In August 2012, the Company
executed a definitive agreement to purchase Foundation Surgery
Affiliates, LLC and Foundation Surgical Hospital Affiliates, LLC,
for 35 million shares of the Company's common stock and a warrant
for the purchase of 4 million shares of the Company's common stock
at an exercise price of $1.50 (assuming conversion of the
preferred stock which was to be issued at closing). The
Foundation acquisition has not closed and management does not
believe that it will close in its current form due to certain
external factors including the inability to obtain the consent of
certain preferred interest holders of certain subsidiaries of
Foundation. Management is working on an alternative structure for
the Foundation transaction, but there is no assurance that the
Foundation acquisition will be closed. On Nov. 12, 2012, the
Company executed a subscription agreement with Graymark
Investments, LLC, in which OHP agreed to purchase 1,444,445 shares
of the Company's common stock for $650,000 ($0.45 per share). The
proceeds from OHP were received on Nov. 13, 2012, and will be used
to fund the operations of the Company. Including the stock
proceeds from OHP, management estimates that the Company has
enough cash to operate through Dec. 31, 2012. Management also
plans on raising equity capital or issuing additional debt in the
near term to meet the Company's additional cash needs in 2013. In
addition, management has initiated a cost reduction plan that is
estimated will save the Company in excess of $2 million in 2013.
The cost reduction plan includes a reduction in the labor force
and general corporate expenses as well as process improvements
that will result in lower bad debt expense. During the fourth
quarter of 2012, management also anticipates developing a plan to
close certain non-profitable lab locations. Historically,
management has been able to raise the capital necessary to fund
the operation and growth of the Company, but there is no assurance
that the Company will be successful in raising the necessary
capital to fund the Company's operations.
"These uncertainties raise substantial doubt regarding the
Company's ability to continue as a going concern."
A copy of the Form 10-Q is available for free at:
http://is.gd/6mesIp
About Graymark Healthcare
Graymark Healthcare, Inc., headquartered in Oklahoma City, Okla.,
provides care management solutions to the sleep disorder market.
As of June 30, 2012, the Company operated 107 sleep diagnostic and
therapy centers in 10 states.
Going Concern Doubt
As of June 30, 2012, the Company had an accumulated deficit of
approximately $42.3 million and reported a net loss of
approximately $7.2 million for the six months then ending. In
addition, the Company used approximately $2.4 million in cash from
operating activities from continuing operations during the six
months ending June 30, 2012.
Historically, management has been able to raise the capital
necessary to fund the operation and growth of the Company, but
the Company can give no assurance that it will be successful in
raising the necessary capital to fund the Company's operations.
During the three months ended June 30, 2012, the Company did not
maintain the minimum cash balance required under the Company's
loan agreement with Arvest Bank. In addition, the Company did not
make the required principal and interest prepayment due to Arvest
Bank on June 30, 2012.
Furthermore, the Company is not currently in compliance with the
minimum bid price requirement for continued listing on The NASDAQ
Capital Market. Under a notice received from NASDAQ, the Company
had until June 18, 2012, to regain compliance. The Company
received a notice of delisting on June 19, 2012. The Company
filed an appeal and went before a hearing with NASDAQ on July 26,
2012. If the Company is delisted from NASDAQ, that will be an
event of default under the Company's loan agreement with Arvest
Bank. Historically, the Company has been successful in obtaining
default waivers from Arvest Bank, but there is no assurance that
Arvest Bank will waive any future defaults. Given that the
Company is not in compliance with certain covenants under the loan
agreement with Arvest Bank, the associated debt has been
classified as current on the accompanying consolidated condensed
balance sheets.
"These uncertainties raise substantial doubt regarding the
Company's ability to continue as a going concern," the Company
said in its quarterly report for the period ended June 30, 2012.
"The consolidated condensed financial statements do not include
any adjustments that might be necessary if the Company is unable
to continue as a going concern."
GREENSHIFT CORP: Delays Form 10-Q for Third Quarter
---------------------------------------------------
GreenShift Corporation was unable to file its quarterly report on
Form 10-Q for the period ended Sept. 30, 2012, within the required
time because there was a delay in completing the adjustments
necessary to close its books for the quarter.
About Greenshift Corporation
Headquartered in New York, GreenShift Corporation develops and
commercializes clean technologies designed to integrate into and
leverage established production and distribution infrastructure to
address the financial and environmental needs of its clients by
decreasing raw material needs, facilitating co-product reuse, and
reducing waste and emissions.
In its audit report on the consolidated financial statements for
the year ended Dec. 31, 2011, Rosenberg Rich Baker Berman &
Company, in Somerset, New Jersey, expressed substantial doubt
about the Company's ability to continue as a going concern. The
independent auditors noted that the Company has suffered losses
from operations and has a working capital deficiency as of Dec.
31, 2011.
The Company's balance sheet at June 30, 2012, showed $7.32 million
in total assets, $46.70 million in total liabilities and a $39.37
million total stockholders' deficit.
GRUBB & ELLIS: Files Liquidating Plan With Less Than 5%
-------------------------------------------------------
Bill Rochelle, the bankruptcy columnist for Bloomberg News,
reports that Grubb & Ellis Co., the real estate broker whose
business was sold in April, filed a liquidating Chapter 11 plan
last week telling unsecured creditors they can expect a recovery
between 1.7% and 4.7%. The proposed disclosure statement says
that $313 million in unsecured claims were filed. Eventually, the
company expects the claims will be reduced to the range of $68
million to $102 million.
According to the report, the proposed disclosure statement
contains a list of more than 400 creditors who might be sued for
having received preferences, or payments within 90 days of
bankruptcy. Creditors' predicted recovery doesn't include
proceeds from preference suits, according to the disclosure
statement. There is less than $1 million in secured debt
remaining after the sale. However, there is about $5 million in
priority claims that must be paid in full before unsecured
creditors receive a distribution.
The report relates there will be a Jan. 9 hearing in U.S.
Bankruptcy Court in Manhattan for approval of disclosure materials
providing creditors with information so they can decide whether to
vote for or against the plan.
About Grubb & Ellis
Grubb & Ellis Company -- http://www.grubb-ellis.com/-- is a
commercial real estate services and property management company
with more than 3,000 employees conducting throughout the United
States and the world. It is one of the oldest and most recognized
brands in the industry.
Grubb & Ellis and 16 affiliates filed for Chapter 11 bankruptcy
(Bankr. S.D.N.Y. Lead Case No. 12-10685) on Feb. 21, 2012, to sell
almost all its assets to BGC Partners Inc. The Santa Ana,
California-based company disclosed $150.16 million in assets and
$167.2 million in liabilities as of Dec. 31, 2011.
Judge Martin Glenn presides over the case. The Debtors have
engaged Togut, Segal & Segal, LLP as general bankruptcy counsel,
Zuckerman Gore Brandeis & Crossman, LLP, as general corporate
counsel, and Alvarez & Marsal Holdings, LLC, as financial advisor
in the Chapter 11 case. Kurtzman Carson Consultants is the claims
and notice agent.
BGC Partners, Inc., and its affiliate, BGC Note Acquisition Co.,
L.P., the DIP lender and Prepetition Secured Lender, are
represented in the case by Emanuel C. Grillo, Esq., at Goodwin
Procter LLP.
On March 27, 2012, the Court approved the sale to BCG. An auction
was cancelled after no rival bids were submitted. Pursuant to the
term sheet signed by the parties, BGC would acquire the assets for
$30.02 million, consisting of a credit bid the full principal
amount outstanding under the (i) $30 million credit agreement
dated April 15, 2011, with BGC Note, (ii) the amounts drawn under
the $4.8 million facility, and (iii) the cure amounts due to
counterparties. BGC would also pay $16 million in cash because
the sale was approved by the March 27 deadline. Otherwise, the
cash component would have been $14 million.
Approval of the sale was simplified when BGC settled with
unsecured creditors by increasing their recovery. Grubb & Ellis
Co. was renamed Newmark Grubb Knight Frank following the sale.
HAWKER BEECHCRAFT: Dumping Warranty Coverage on Jet Aircraft
------------------------------------------------------------
Bill Rochelle, the bankruptcy columnist for Bloomberg News,
reports that purchasers of Hawker Beechcraft Inc. private jet
aircraft have buyers' remorse. The company will stop honoring
warranties and customer support agreements on the 232 Hawker 4000
and Premier I and IA jets.
According to the report, when Hawker couldn't come to terms with
China's Superior Aviation Beijing Co. Ltd. for a sale of the
entire company, the decision was made to halt manufacturing and
development of private jets. At a Nov. 29 hearing in U.S.
Bankruptcy Court in Manhattan, the company will ask for formal
permission to stop honoring warranties and related agreements.
The report relates Hawker says purchasers of non-jet aircraft have
nothing to fear because the company "eventually" will agree to
honor those warranties. Owners of Hawker jets will continue
having warranty coverage for engines and avionics, because those
warranties are supplied by the manufacturers of the components,
the company said.
The report notes that after the Superior sale fell apart, Hawker
filed a revised bankruptcy reorganization plan in October
supported by the official creditors' committee, a "substantial
majority" of holders of the senior credit, and a majority of
holders of senior notes. There will be a Nov. 29 hearing for
approval of disclosure materials so creditors can begin voting.
The revised plan offers 81.9% of the new stock in return for
$921 million of the $1.83 billion owing on the senior credit.
Unsecured creditors are to receive the remaining 18.9% of the new
stock.
Hawker's $183 million in 8.5% senior unsecured notes due 2015
traded on Nov. 13 for 9.5 cents on the dollar, according to Trace,
the bond-price reporting system of the Financial Industry
Regulatory Authority. Last week's price represents a 50% plunge
from Oct. 2, before the Superior deal fell apart. The
$302 million in 8.875% senior unsecured notes due 2015 last traded
on Sept. 13 for 19.5 cents, Trace said.
About Hawker Beechcraft
Hawker Beechcraft Acquisition Company, LLC, headquartered in
Wichita, Kansas, manufactures business jets, turboprops and piston
aircraft for corporations, governments and individuals worldwide.
Hawker Beechcraft reported a net loss of $631.90 million on
$2.43 billion of sales in 2011, compared with a net loss of
$304.30 million on $2.80 billion of sales in 2010.
Hawker Beechcraft Inc. and 17 affiliates filed for Chapter 11
reorganization (Bankr. S.D.N.Y. Lead Case No. 12-11873) on May 3,
2012, having already negotiated a plan that eliminates $2.5
billion in debt and $125 million of annual cash interest expense.
The plan will give 81.9% of the new stock to holders of $1.83
billion of secured debt, while 18.9% of the new shares are for
unsecured creditors. The proposal has support from 68% of secured
creditors and holders of 72.5% of the senior unsecured notes.
Hawker is 49%-owned by affiliates of Goldman Sachs Group Inc. and
49%-owned by Onex Corp. The Company's balance sheet at Dec. 31,
2011, showed $2.77 billion in total assets, $3.73 billion in total
liabilities and a $956.90 million total deficit. Other claims
include pensions underfunded by $493 million.
Hawker's legal representative is Kirkland & Ellis LLP, its
financial advisor is Perella Weinberg Partners LP and its
restructuring advisor is Alvarez & Marsal. Epiq Bankruptcy
Solutions LLC is the claims and notice agent.
Sidley Austin LLP serves as legal counsel and Houlihan Lokey
Howard & Zukin Capital Inc. serves as financial advisor to the DIP
Agent and the Prepetition Agent.
Wachtell, Lipton, Rosen & Katz represents an ad hoc committee of
senior secured prepetition lenders holding 70% of the loans.
Milbank, Tweed, Hadley & McCloy LLP represents an ad hoc committee
of holders of the 8.500% Senior Fixed Rate Notes due 2015 and
8.875%/9.625% Senior PIK Election Notes due 2015 issued by Hawker
Beechcraft Acquisition Company LLC and Hawker Beechcraft Notes
Company. The members of the Ad Hoc Committee -- GSO Capital
Partners, L.P. and Tennenbaum Capital Partners, LLC -- hold claims
or manage accounts that hold claims against the Debtors' estates
arising from the purchase of the Senior Notes. Deutsche Bank
National Trust Company, the indenture trustee for senior fixed
rate notes and the senior PIK-election notes, is represented by
Foley & Lardner LLP.
An Official Committee of Unsecured Creditors appointed in the case
has selected Daniel H. Golden, Esq., and the law firm of Akin Gump
Strauss Hauer & Feld LLP as legal counsel. The Committee's
financial advisor is FTI Consulting, Inc.
On June 30, 2012, Hawker filed its Plan, which proposed to
eliminate $2.5 billion in debt and $125 million of annual cash
interest expense. The plan would give 81.9% of the new stock to
holders of $1.83 billion of secured debt, while 18.9% of the new
shares are for unsecured creditors. The proposal has support from
68% of secured creditors and holders of 72.5% of the senior
unsecured notes.
In July 2012, Hawker disclosed it was in exclusive talks with
China's Superior Aviation Beijing Co. for the purchase of Hawker's
corporate jet and propeller plane operations out of bankruptcy for
$1.79 billion.
In October 2012, Hawker unveiled that those talks have collapsed
amid concerns a deal with Superior wouldn't pass muster with a
U.S. government panel and other cross-cultural complications.
Sources told The Wall Street Journal that Superior encountered
difficulties separating Hawker's defense business from those units
in a way that would make both sides comfortable the deal would get
U.S. government clearance. The sources told WJS the defense
operations were integrated in various ways with Hawker's civilian
businesses, especially the propeller plane unit, in ways that
proved difficult to untangle.
Thereafter, Hawker said it intends to emerge from bankruptcy as an
independent company. On Oct. 29, 2012, Hawker filed a modified
reorganization plan and disclosure materials. Hawker said the
plan was supported by the official creditors' committee and by a
"substantial majority" of holders of the senior credit and a
majority of holders of senior notes. Hawker said it will either
sell or close the jet-manufacturing business.
The revised plan still offers 81.9% of the new stock in return for
$921 million of the $1.83 billion owing on the senior credit.
Unsecured creditors are to receive the remaining 18.9% of the new
stock. Holders of the senior credit will receive 86% of the new
stock. The senior credit holders are projected to have a 43.1%
recovery from the plan. General unsecured creditors' recovery is
a projected 5.7% to 6.3%. The recovery by holders of $510 million
in senior notes is predicted to be 9.2% to 10%.
HELICOS BIOSCIENCES: Financial Woes Cue Chapter 11 Filing
---------------------------------------------------------
Helicos BioSciences Corporation filed a voluntary petition for
relief under Chapter 11 of the United States Bankruptcy Code
(Bankr. D. Mass. Case No. 12-19091) on Nov. 15, 2012. The Company
continues to operate its business as debtor in possession under
the jurisdiction of the Bankruptcy Court and in accordance with
the applicable provisions of the Code and the orders of the
Bankruptcy Court.
Helicos BioSciences said in a regulatory filing the bankruptcy
created an event of default under the Subordinated Secured Note
Purchase Agreement, dated Nov. 16, 2010, by and among the Company
and each of the Purchasers identified therein. The Company
currently has $2,375,000 of convertible promissory notes
outstanding under the Purchase Agreement. The Company's
obligations under the Notes are secured by a security interest in
all of the Company's assets, including its intellectual property,
that, with regard to all of the Company's assets other than the
Company's ongoing litigation against Illumina, Inc. is a first
priority security interest and with regard to the Cause of Action,
is junior to the first priority security interest of its outside
legal counsel that is representing the Company in the Cause of
Action.
On Nov. 15, Helicos also said it is not timely filing its
Quarterly Report on Form 10-Q for the fiscal quarter ended
September 30, 2012. The Company said its Board of Directors has
determined that continued operation of the Company outside of
bankruptcy protection is not possible due to its lack of cash
resources and no available funding options.
The Company disclosed assets of $3.5 million and debt totaling
$15.5 million.
Genetic Engineering & Biotechnology News reports that Helicos
BioSciences blamed rough financial sledding and tough competition
from rival next-generation sequencing companies. The report says
the Chapter 11 filing came about three months after Helicos last
released quarterly results, which showed the company recording a
Q2 loss of $459,000, an improvement over its $1.771 million loss
for the second three months of 2011. Another brighter note was
its cash and cash equivalents, which rose as of Aug. 9 to $2.1
million from $446,000 at the end of Q2.
Genetic Engineering & Biotechnology News also reports Helicos'
second-quarter revenues plunged 29% from a year earlier, to
$577,000 from $809,000 in Q2 2011: "The Company does not generate
sufficient funds to operate its business. The Company continues
to require significant additional capital on a month-to-month
basis," Helicos stated in its 10-Q filing with the SEC.
The report says Helicos sought to stem its financial bleeding with
rounds of layoffs in 2010 and 2011 that eliminated a combined 66
positions, leaving it with 10 full- and part-time employees at the
start of his year, and just eight at the start.
While the company has long struggled financially, its troubles
mounted in recent months. Genetic Engineering & Biotechnology
News reports President and CEO Ivan Trifunovich resigned from
those positions Sept. 14, two weeks after he resigned as executive
chairman of Helicos' board of directors. Trifunovich served at
the helm of Helicos less than two years, taking office in October
2010.
The report notes Mr. Trifunovich resigned days after the U.S.
District Court for the District of Delaware on Aug. 28 granted
summary judgment in favor of arch-rival sequencing equipment maker
Illumina in a patent-infringement case brought by Helicos.
District Judge Sue Robinson declared U.S. Patent No 7,593,109 held
by Helicos invalid for "lack of written description." Helicos
began the litigation by suing Illumina and two other rivals, Life
Technologies and Pacific Biosciences, only to settle with Pac Bio
and drop its suit vs. Life Tech.
Genetic Engineering & Biotechnology News relates Helicos in
bankruptcy court filings called the summary judgment decision "the
final blow to the Debtor's potential for long-term viability."
The report says, among creditors holding the 20 largest unsecured
claims, the largest three are all held by law firms: Brown Rudnick
($1.03 million), Goodwin Procter ($568,903.49), and Wilmer Hale
($238,997.52).
The report adds Noubar Afeyan and Peter Barrett of Atlas Ventures
resigned last month from Helicos' board.
About Helicos BioSciences
Helicos BioSciences Corporation is a publicly traded life science
company headquartered in Cambridge, Massachusetts focused on
genetic analysis technologies for the research, drug discovery and
diagnostic markets. The firm's Helicos Genetic Analysis Platform
was the first DNA sequencing instrument to operate by imaging
individual DNA molecules. Helicos was co-founded in 2003 by life
science entrepreneur Stanley Lapidus, Stephen Quake, and Noubar
Afeyan with investments from Atlas Venture, Flagship Ventures,
Highland Capital Partners, MPM Capital, and Versant Ventures.
HELICOS BIOSCIENCES: Case Summary & 20 Largest Unsecured Creditors
------------------------------------------------------------------
Debtor: Helicos Biosciences Corporation
One Kendall Square, Building 200
Cambridge, MA 02139
Bankruptcy Case No.: 12-19091
Chapter 11 Petition Date: November 15, 2012
Court: U.S. Bankruptcy Court
District of Massachusetts (Boston)
Judge: Frank J. Bailey
Debtor's Counsel: Daniel C. Cohn, Esq.
MURTHA CULLINA LLP
99 High Street
Boston, MA 02110
Tel: (617) 457-4155
E-mail: dcohn@murthalaw.com
- and ?
Keri Linnea Wintle, Esq.
MURTHA CULLINA LLP
99 High Street
Boston, MA 02110
Tel: (617) 457-4000
Fax: (617) 210-7060
E-mail: kwintle@murthalaw.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $10,000,001 to $50,000,000
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/mab12-19091.pdf
The petition was signed by Jeffrey R. Moore, sr. vice president
and CFO.
HOMER CITY: Moody's Withdraws 'Caa1' Rating After Bankruptcy
-----------------------------------------------------------
Moody's Investors Service has withdrawn the Caa1 rating with a
negative outlook for Homer City Funding, LLC's senior secured
bonds following the company's bankruptcy filing earlier in the
month.
RATINGS RATIONALE
On November 6, 2012, Homer City Funding, LLC filed for Chapter 11
bankruptcy protection in the U.S. Bankruptcy Court for the
District of Delaware. The bankruptcy filing follows Homer City
Funding, LLC's payment default on October 1, 2012 and the
occurrence of an event of default under the bond indenture.
The last rating action on Homer City Funding, LLC occurred on May
11, 2012 when the rating was downgraded to Caa1 from B2 with the
outlook remaining negative.
The principal methodology used in this rating was Power Generation
Projects published in December 2008.
Homer City Funding LLC is a Delaware limited liability company and
special purpose funding vehicle created for the purpose of
engaging in a sale-leaseback transaction involving a 1,884 MW
coal-fired plant in Homer City, PA which has been leased by EME
Homer City Generation L.P. (EME Homer City). An affiliate of
General Electric Capital Corporation (GECC) is expected to obtain
the economic benefit and majority ownership of all the operating
assets of the Homer City coal fired plant as part of the overall
restructuring of Homer City.
HOSTESS BRANDS: Liquidation to Last One Year, Cost Millions
-----------------------------------------------------------
Bill Rochelle, the bankruptcy columnist for Bloomberg News,
reports that Hostess Brands Inc. is asking the bankruptcy judge
for permission to liquidate the business in a process taking one
year to complete. The baker of Wonder Bread was forced to
liquidate when the Bakery, Confectionery, Tobacco Workers and
Grain Millers International Union refused to end a strike begun
Nov. 9. Ultimately, 18,500 workers will lose their jobs, the
company said last week. Initially, 3,200 workers will be retained
to shut down the plants. Hostess is proposing bonuses to keep 19
officers aboard during the liquidation.
According to the report, in the next three months, Hostess
estimates that the cost of shutting down the 36 plants will be
$17.6 million. Another $6.8 million will be spent on closing 550
depots and the same amount for retail stores. Winding down the
corporate offices will cost an estimated $8.1 million over the
first three months, according to a court filing.
The report relates Hostess warned that because cash won't come in
so quickly as costs are incurred in the liquidation, it may not be
able to pay liquidation costs when they come due. An incentive
bonus plan for executives could cost as much as $1.75 million.
The company wants the bankruptcy judge to give preliminary
approval for liquidation procedures Nov. 19, followed by final
approval at a Nov. 29 hearing.
Hostess, the report recounts, began its second traverse though
bankruptcy court in January, blaming financial problems on
"uncompetitive and unsustainable" union contracts, pension plans,
and health benefits. Saying it needed a "dramatic change" in
labor contracts, Hostess immediately filed a motion to terminate
existing labor agreements. Rather than come to blows with the two
main labor unions right off the bat, Hostess initiated
negotiations that continued on and off into October. The bakery
workers decided not to oppose the courtroom effort at overturning
existing contracts. Instead, the bakery workers would rely on
their right to strike. Meanwhile, Hostess successfully negotiated
with the Teamsters union, whose 6,700 members ratified a contract
with concessions in September. With 92% voting "no," the bakery
workers turned down contracts with the same concessions.
In May and again in October, the bankruptcy judge in White Plains,
New York, authorized Hostess to impose concessions on some of the
bakery union's locals. Hostess implemented reductions in salaries
and benefits among its union and non-union workers on Oct. 21. By
Nov. 7, some bakery union locals started sending strike notices.
Hostess responded by permanently closing three plants and gave the
union notice that the entire business would liquidate if
sufficient workers didn't return to the job by Nov. 15 to permit
normal operations. Hostess said it didn't have financial strength
to withstand a protracted strike. The Teamsters sided with
Hostess to the extent of telling the bakery workers that the
company was making no empty threat.
The 5,000 bakery workers said the strike was a necessary reaction
to what the union called the "unilateral imposition of a
horrendous contract" rejected by 92% of the membership. The union
blamed Hostess's financial problems on years of bad management,
not on excessive union contracts. The Teamsters said in a
statement that Hostess had been "mismanaged for quite some time."
Mr. Rochelle notes that whether Hostess could have survived even
without a strike will never be known. The company filed a
proposed reorganization plan in October telling unsecured
creditors with upwards of $2.5 billion in claims they would
receive nothing. The plan called for issuing almost $700 million
in various levels of new secured debt, most paying interest
through issuance of more debt. Instead of cash, Hostess was
asking professionals to accept new third-lien notes for 18% of
their fees. Even to attempt winning creditor and court approval
for the plan, Hostess needed to raise $88 million cash plus enough
to pay off the amount outstanding under the $75 million loan
financing the reorganization.
About Hostess Brands
Founded in 1930, Irving, Texas-based Hostess Brands Inc., is known
for iconic brands such as Butternut, Ding Dongs, Dolly Madison,
Drake's, Home Pride, Ho Hos, Hostess, Merita, Nature's Pride,
Twinkies and Wonder. Hostess has 36 bakeries, 565 distribution
centers and 570 outlets in 49 states.
Hostess filed for Chapter 11 bankruptcy protection early morning
on Jan. 11, 2011 (Bankr. S.D.N.Y. Case Nos. 12-22051 through
12-22056) in White Plains, New York. Debtor-affiliates that filed
separate Chapter 11 petition are IBC Sales Corporation, IBC
Trucking LLC, IBC Services LLC, Interstate Brands Corporation, and
MCF Legacy Inc. Hostess Brands disclosed assets of $982 million
and liabilities of $1.43 billion as of Dec. 10, 2011. Debt
includes $860 million on four loan agreements. Trade suppliers
are owed as much as $60 million.
The bankruptcy filing was made two years after predecessors
Interstate Bakeries Corp. and its affiliates emerged from
bankruptcy (Bankr. W.D. Mo. Case No. 04-45814). Ripplewood
Holding LLC, after providing $130 million to finance the plan,
obtained control of IBC's business following the prior
reorganization. Hostess Brands is privately held. The new owners
pursued new Chapter 11 cases to escape from what they called
"uncompetitive and unsustainable" union contracts, pension plans,
and health benefit programs.
In 2011, Hostess retained Houlihan Lokey to explore sales of its
smaller assets and individual brands. Houlihan Lokey oversaw the
sale of Mrs. Cubbison's to Sugar Foods Corporation for
$12 million, but was unable to sell any of Hostess' core assets.
Judge Robert D. Drain oversees the case. Hostess has hired Jones
Day as bankruptcy counsel; Stinson Morrison Hecker LLP as general
corporate counsel and conflicts counsel; Perella Weinberg Partners
LP as investment bankers, FTI Consulting, Inc. to provide an
interim treasurer and additional personnel for the Debtors, and
Kurtzman Carson Consultants LLC as administrative agent.
Matthew Feldman, Esq., at Willkie Farr & Gallagher, and Harry
Wilson, the head of turnaround and restructuring firm MAEVA
Advisors, are representing the Teamsters union.
Attorneys for The Bakery, Confectionery, Tobacco Workers and Grain
Millers International Union and Bakery & Confectionery Union &
Industry International Pension Fund are Jeffrey R. Freund, Esq.,
at Bredhoff & Kaiser, P.L.L.C.; and Ancela R. Nastasi, Esq., David
A. Rosenzweig, Esq., and Camisha L. Simmons, Esq., at Fulbright &
Jaworski L.L.P.
An official committee of unsecured creditors has been appointed in
the case. The committee selected New York law firm Kramer Levin
Naftalis & Frankel LLP as its counsel. Tom Mayer and Ken Eckstein
head the legal team for the committee.
IDO SECURITY: Incurs $1.5 Million Net Loss in Third Quarter
-----------------------------------------------------------
IDO Security Inc. filed with the U.S. Securities and Exchange
Commission its quarterly report on Form 10-Q disclosing a net loss
of $1.49 million on $14,232 of revenue for the three months ended
Sept. 30, 2012, compared with a net loss of $1.71 million on
$169,737 of revenue for the same period during the prior year.
The Company reported a net loss of $1.52 million on $299,712 of
revenue for the nine months ended Sept. 30, 2012, compared with a
net loss of $5.64 million on $189,223 of revenue for the same
period a year ago.
The Company's balance sheet at Sept. 30, 2012, showed $1.53
million in total assets, $21.73 million in total liabilities and a
$20.19 million total stockholders' deficiency.
"At September 30, 2012, the Company had not achieved profitable
operations, had accumulated losses of $46.2 million (since
inception), a working capital deficiency of $18.9 million and
expects to incur further losses in the development of its
business. These conditions raise substantial doubt about the
Company's ability to continue as a going concern."
A copy of the Form 10-Q is available for free at:
http://is.gd/qCIrCM
About IDO Security
IDO Security Inc. is engaged in the design, development and
marketing of devices for the homeland security and loss prevention
markets that are intended for use in security screening procedures
to detect metallic objects concealed on or in footwear, ankles and
feet through the use of electro-magnetic fields. The Company's
common stock trades on the OTC Bulletin Board under the symbol
IDOI. The Company is headquartered in New York City.
The Company reported a net loss of $7.36 million in 2011, compared
with a net loss of $7.77 million in 2010.
Bankruptcy Warning
The Company said in its 2011 annual report that under the terms
of the agreements with the holders of the Company's secured
promissory notes that the Company issued in December 2007 through
December 2011, the note holders have a first priority lien on
substantially all of the Company's assets, including the Company's
cash balances. If the Company defaults under the notes, the note
holders would be entitled to, among other things, foreclose on the
Company's assets (whether inside or outside a bankruptcy
proceeding) in order to satisfy the Company's obligations under
the credit facility.
INFINITY ENERGY: Delays Form 10-Q for Third Quarter
---------------------------------------------------
Infinity Energy Resources, Inc., was unable to timely file its
quarterly report on Form 10-Q for the quarter ended Sept. 30,
2012, due to an unanticipated delay in connection with its
preparation, review and filing. The Company expects to file
within the extension period.
About Infinity Energy
Overland Park, Kansas-based Infinity Energy Resources, Inc., and
its subsidiaries, are engaged in the acquisition and exploration
of oil and gas properties offshore Nicaragua in the Caribbean Sea.
Following the 2011 results, Ehrhardt Keefe Steiner & Hottman PC,
in Denver, Colorado, noted that the Company has suffered recurring
losses and has a significant working capital deficit, which raises
substantial doubt about its ability to continue as a going
concern.
The Company reported a net loss of $3.53 million in 2011, compared
with a net loss of $3.77 million in 2010.
The Company's balance sheet at June 30, 2012, showed $4.23 million
in total assets, $10.59 million in total liabilities,
$11.42 million in redeemable, convertible preferred stock, and a
$17.78 million total stockholders' deficit.
INTEGRATED BIOPHARMA: Delays Form 10-Q for Sept. 30 Quarter
-----------------------------------------------------------
Integrated BioPharma, Inc.'s quarterly report on Form 10-Q for the
quarterly period ended Sept. 30, 2012, was not filed within the
prescribed time period because the Company is experiencing delays
in the collection and compilation of certain information required
to be included in the Form 10-Q. The Company's Quarterly Report
on Form 10-Q will be filed on or before the fifth calendar day
following the prescribed due date.
About Integrated BioPharma
Based in Hillside, N.J., Integrated BioPharma, Inc. (INBP.OB) --
-- http://www.healthproductscorp.us/ -- is engaged primarily in
manufacturing, distributing, marketing and sales of vitamins,
nutritional supplements and herbal products. The Company's
customers are located primarily in the United States. The Company
was previously known as Integrated Health Technologies, Inc., and,
prior to that, as Chem International, Inc. The Company was
reincorporated in its current form in Delaware in 1995. The
Company continues to do business as Chem International, Inc., with
certain of its customers and certain vendors.
The Company incurred a net loss of $2.71 million for the
year ended June 30, 2012, compared with a net loss of $2.28
million during the prior year.
The Company's balance sheet at June 30, 2012, showed
$11.87 million in total assets, $22.26 million in total
liabilities, and a $10.38 million total stockholders' deficiency.
"The Company has incurred recurring operating losses for six
consecutive years including an operating loss of $506 and a net
loss of $2.7 million for the year ended June 30, 2012.
Additionally, at June 30, 2011, and through the fourth quarter of
the fiscal year ended June 30, 2012, the Notes Payable in the
amount of $7.8 million, which matured on Nov. 15, 2009, were in
default and the Company's Original CD Note of $4.5 million, which
matured in February 2011, was also in default. These factors
raised substantial doubt as to the Company's ability to continue
as a going concern at June 30, 2011, and through the third quarter
of the fiscal year ended June 30, 2012," the Company said in its
annual report for the year ended June 30, 2012.
INFUSYSTEM HOLDINGS: Posts $33,000 Net Income in Third Quarter
--------------------------------------------------------------
Infusystem Holdings, Inc., filed with the U.S. Securities and
Exchange Commission its quarterly report on Form 10-Q disclosing
net income of $33,000 on $14.17 million of net revenues for the
three months ended Sept. 30, 2012, compared with a net loss of
$16.62 million on $14.50 million of net revenues for the same
period during the prior year.
For the nine months ended Sept. 30, 2012, the Company reported a
net loss of $1.71 million on $42.59 million of net revenues,
compared with a net loss of $44.67 million on $40.59 million of
net revenues for the same period a year ago.
The Company reported a net loss of $45.44 million in 2011,
compared with a net loss of $1.85 million in 2010.
The Company's balance sheet at Sept. 30, 2012, showed $74.02
million in total assets, $34.68 million in total liabilities and
$39.33 million in total stockholders' equity.
"InfuSystem's operational performance continues on a positive
trend as evidenced by our ability to achieve profitability in the
third quarter, while delivering best in class service and patient
satisfaction," said interim chief executive officer Dilip Singh.
"Our entire team has embraced efforts to focus, prioritize and
execute in order to sustain this growth. We will continue to
drive operational efficiencies and further integrate assets to
build on progress to date.'
"We are pleased to have reduced our net debt position from $30.1
million as of March 31, 2012 to $24.6 million as of September 30,
2012. This significant decrease reflects management's attention
to expenses and managing the balance sheet for maximum cash
impact," Mr. Singh noted.
A copy of the Form 10-Q is available for free at:
http://is.gd/u1k8Hp
About InfuSystem Holdings
InfuSystem Holdings, Inc., operates through operating
subsidiaries, including InfuSystem, Inc., and First Biomedical,
Inc. InfuSystem provides infusion pumps and related services.
InfuSystem provides services to hospitals, oncology practices and
facilities and other alternate site healthcare providers.
Headquartered in Madison Heights, Michigan, InfuSystem delivers
local, field-based customer support, and also operates pump
service and repair Centers of Excellence in Michigan, Kansas,
California, and Ontario, Canada.
After auditing the Company's 2011 financial statements, Deloitte &
Touche LLP, in Detroit, Michigan, said that the possibility of a
change in the majority representation of the Board and consequent
event of default under the Credit Facility, which would allow the
lenders to cause the debt of $24.0 million to become immediately
due and payable, raises substantial doubt about the Company's
ability to continue as a going concern.
INTERMETRO COMMUNICATIONS: Reports $271,000 Net Income in Q3
------------------------------------------------------------
InterMetro Communications, Inc., filed with the U.S. Securities
and Exchange Commission its quarterly report on Form 10-Q
disclosing net income of $271,000 on $5.52 million of net revenues
for the three months ended Sept. 30, 2012, compared with net
income of $541,000 on $4.94 million of net revenues for the same
period during the prior year.
For the nine months ended Sept. 30, 2012, the Company reported net
income of $267,000 on $14.86 million of net revenues, compared
with net income of $2.91 million on $16.55 million of net revenues
for the same period a year ago.
The Company's balance sheet at Sept. 30, 2012, showed $3.24
million in total assets, $16.04 million in total liabilities and a
$12.79 million total stockholders' deficit.
A copy of the Form 10-Q is available for free at:
http://is.gd/dRGEOH
About InterMetro
Simi Valley, Calif.-based InterMetro Communications, Inc.,
-- http://www.intermetro.net/-- is a Nevada corporation which
through its wholly owned subsidiary, InterMetro Communications,
Inc. (Delaware), is engaged in the business of providing voice
over Internet Protocol ("VoIP") communications services.
As reported in the TCR on April 3, 2012, Gumbiner Savett Inc., in
Santa Monica, California, expressed substantial doubt about
InterMetro's ability to continue as a going concern, following its
report on the Company's financial statements for the year ended
Dec. 31, 2011. The independent auditors noted that the Company
incurred net losses in previous years, and as of Dec. 31, 2011,
the Company had a working capital deficit of approximately
$12,696,000 and a total stockholders' deficit of $13,274,000. The
Company anticipates that it will not have sufficient cash flow to
fund its operations in the near term and through fiscal 2012
without the completion of additional financing.
INTERLEUKIN GENETICS: Incurs $1.3-Mil. Net Loss in 3rd Quarter
--------------------------------------------------------------
Interleukin Genetics, Inc., filed with the U.S. Securities and
Exchange Commission its quarterly report on Form 10-Q disclosing
a net loss of $1.28 million on $420,011 of total revenue for the
three months ended Sept. 30, 2012, compared with a net loss of
$1.13 million on $765,416 of total revenue for the same period
during the prior year.
For the nine months ended Sept. 30, 2012, the Company reported a
net loss of $3.93 million on $1.89 million of total revenue,
compared with a net loss of $3.60 million on $2.28 million of
total revenue for the same period during the prior year.
The Company reported a net loss of $5.0 million for 2011, compared
with a net loss of $6.0 million for 2010.
The Company's balance sheet at Sept. 30, 2012, showed $3.50
million in total assets, $15.96 million in total liabilities, all
current, and a $12.45 million total stockholders' deficit.
A copy of the Form 10-Q is available for free at:
http://is.gd/U5kYis
The Company filed a Form S-8 registering 750,000 shares of common
stock issuable under the Company's 2012 Employee Stock Purchase
Plan. The proposed maximum aggregate offering price is $258,750.
A copy of the prospectus is available at http://is.gd/6XoPBZ
About Interleukin
Waltham, Mass.-based Interleukin Genetics, Inc., is a personalized
health company that develops unique genetic tests to provide
information to better manage health and specific health risks.
Following the Company's financial results for the year ended
Dec. 31, 2011, Grant Thornton LLP, in Boston, Massachusetts,
expressed substantial doubt about Interleukin Genetics' ability to
continue as a going concern. The independent auditors noted that
the Company incurred a net loss of $5.02 million during the year
ended Dec. 31, 2011, and, as of that date, the Company's current
liabilities exceeded its current assets by $12.27 million and its
total liabilities exceeded total assets by $11.4 million.
INTERNATIONAL RECTIFIER: S&P Alters Outlook on BB- CCR to Positive
------------------------------------------------------------------
Standard & Poor's Ratings Services revised its outlook on El
Segundo, Calif.-based International Rectifier Corp. (IRF) to
stable from positive. "At the same time, we affirmed our existing
'BB-' corporate credit rating on the company," S&P said.
"The outlook revision reflects our view that IRF's revenues and
cash flows will continue to face headwinds from the ongoing
difficult global macroeconomic environment through fiscal 2013,
limiting the potential for a higher rating in the near term," said
Standard & Poor's credit analyst Andrew Chang. "The rating on IRF
reflects the company's mid-tier position in a highly competitive
and cyclical industry and its weak cash flow metrics relative to
peers, partially offset by its conservative capital structure and
adequate liquidity," added Mr. Chang.
Standard & Poor's Ratings Services' expects IRF's revenues to
decline and free cash flow to remain negative in fiscal 2013, as a
result of continued macroeconomic headwinds. IRF's business risk
profile is "weak," and its financial risk profile is
"significant."
"IRF's performance remains volatile, with revenues down 17% for
the 12 months ended September 2012 versus the prior year due
mostly to overall weakness in its end markets. Profitability
declined significantly as well, with an adjusted EBITDA margin
near 7% as compared with a previous cyclical peak of 21%,
primarily due to lower capacity utilization. Given continuing near
term macroeconomic headwinds, we project revenue declines near
double digits and a nominally positive EBITDA margin in fiscal
2013. We note, however, that IRF has initiated various
restructuring measures aimed at reducing the company's high fixed
costs, including resizing its fabrication facilities and reducing
selling, general, and administrative, as well as research and
development, expenses. We believe these actions will lead to
improving profitability in fiscal 2014," S&P said.
JACOBS ENTERTAINMENT: S&P Ups CCR to 'B' on Completed Refinancing
-----------------------------------------------------------------
Standard & Poor's Ratings Services raised its corporate credit
rating on Golden, Col.-based Jacobs Entertainment Inc. to 'B' from
'B-', and removed the rating from CreditWatch, where it was placed
with positive implications on Sept. 19, 2012.
"We rate Jacobs' first-lien revolving credit facility and term
loan 'B+' (one notch higher than the 'B' corporate credit rating)
with a recovery rating of '2', indicating our expectation of
substantial (70% to 90%) recovery in the event of a payment
default. We rate Jacobs' second-lien term loan 'CCC+' (two notches
lower than the 'B' corporate credit rating) with a recovery rating
of '6', indicating our expectation of negligible (0 to 10%)
recovery," S&P said.
"The first-lien recovery rating of '2' (expectation of 70% to 90%
recovery) is different from the preliminary recovery rating of '1'
(90% to 100% recovery). This reflects an increase in the term loan
to $220 million from the $210 million originally contemplated. The
first-lien revolving credit facility remains at $50 million. The
increase in the term loan results in a higher level of first-lien
debt outstanding under our simulated default scenario compared
with our previous analysis. This reduces the recovery prospects
for the first-lien credit facilities enough to warrant a lower
recovery rating compared with our preliminary recovery rating. The
issue-level rating on these loans of 'B+' (compared with our
preliminary 'BB-) is in accordance with our notching criteria. The
second-lien term loan was reduced to $80 million from the $110
million originally contemplated," S&P said.
"Jacobs used the proceeds from its first- and second-lien term
loans to refinance existing debt (at June 30, 2012, Jacobs had
around $80 million in senior secured debt due December 2013 and
$210 million in principal amount of notes due June 2014). It also
plans to use the proceeds to buy out a management contract,
acquire a revenue sharing contract, to fund a reimbursement to the
company's owner for prior truck stop plaza acquisitions, and fund
fees and expenses," S&P said.
"The rating upgrade reflects the execution of the refinancing
transaction, which eliminates near-term refinancing risk," said
Standard & Poor's credit analyst Ariel Silverberg.
"The upgrade also reflects our belief that operating performance
will remain fairly stable over the intermediate term, resulting in
leverage remaining around 6x and EBITDA interest coverage
remaining around 2x, which we view as in line with a 'B' rating
level," S&P said.
"While the refinancing transaction will add around $20 million in
incremental debt to Jacobs' capital structure, we expect adjusted
leverage (pro forma for the transaction, leverage was 5.9x at June
30, 2012) to remain around 6x over the intermediate term. This
incorporates our expectation that modest EBITDA growth and term-
loan reduction (through required term-loan amortization and cash
flow sweeps) over the intermediate term, partly will be offset by
a continued pursuit of modest acquisitions, particularly of truck
plazas in Louisiana, through both internally generated funds and
revolver availability. We do not expect Jacobs to pursue
acquisitions to the extent that adjusted leverage would increase
meaningfully above the low- to mid-6x range," S&P said.
JSP INVESTMENTS: 124 Residential Properties to Be Sold Dec. 4
-------------------------------------------------------------
Chris Dettro at The State Journal-Register reports a sheriff's
sale of more than 125 residential properties in Sangamon County,
Ill., scheduled for Dec. 4, 2012, will effectively dismantle the
real estate empire of JSP Investments.
The report relates JSP Investments and related companies owned by
Jeffrey S. Polen filed for Chapter 11 bankruptcy protection last
year, but the bankruptcy was converted to Chapter 7 liquidation on
May 1.
According to the report, the State Bank of Lincoln was owed more
than $6.7 million when the original bankruptcy was filed. It
sought to foreclose on the properties in state court. The homes,
which have 132 different addresses, are mostly in Springfield but
also in Sherman, Riverton and Auburn.
The report notes one of the Lincoln Bank's attorneys said the bank
won relief from the bankruptcy stay to pursue foreclosure. The
properties will be sold as a package at the sheriff's sale, said
Katie McInerney of Gehlbach Law Office in Lincoln.
The report says the bank will be the only bidder for the
properties. The report relates Ms. McInerney said the bank is
looking for interested buyers, including tenants of the occupied
properties, as well as people who had rent-to-own agreements with
JSP.
The report says most of what JSP owes to State Bank of Lincoln was
inherited from the John Warner Bank in Clinton, which was closed
by the Federal Deposit Insurance Corp. in 2009. The failed bank's
assets were transferred to State Bank of Lincoln, which already
held some mortgages on JSP homes.
In addition to what is owed the Lincoln bank, JSP owed hundreds of
thousands of dollars more to other creditors, according to the
bankruptcy filing. It also owed more than $250,000 in property
taxes as of June 2011, the report says.
The report relates the bankruptcy trustee asked the federal
bankruptcy court to convert JSP's filing to Chapter 7 in January,
saying that JSP failed to comply with the operating requirements
for Chapter 11 by not supplying necessary operating reports.
The report notes Apartment Mart was appointed receiver for the
properties in June 2011 by a Sangamon County judge. Apartment
Mart has collected rents and managed the properties since then.
Many of the properties are unoccupied.
About JSP Investments
Based in Springfield, Illinois, J.S.P. Investments, Inc., aka JSP
Investments, Inc., filed for Chapter 11 bankruptcy protection on
June 24, 2011 (Bankr. C.D. Ill. Case No. 11-71692). Judge Mary P.
Gorman presides over the case. James R. Enlow, Esq., represents
the Debtor. The Debtor estimated both assets and debts of between
$1 million and $10 million.
Jeffrey Polen, president of JSP, said the firm sought Chapter 11
to stop a pending foreclosure action in Sangamon County Circuit
Court and save people's homes. JSP pegs the value of that
property at slightly more than $2.25 million, which leaves the
bank with nearly $4.7 million in unsecured debt.
The bank lender has said reorganization under Chapter 11 is
impossible, and the properties, which have already suffered from
lack of maintenance, will continue to crumble as time passes.
KENT SQUARE: Case Summary & 2 Unsecured Creditors
-------------------------------------------------
Debtor: Kent Square LLC
24419 105th Place SE
Kent, WA 98030
Bankruptcy Case No.: 12-21539
Chapter 11 Petition Date: November 15, 2012
Court: U.S. Bankruptcy Court
Western District of Washington (Seattle)
Judge: Marc Barreca
Debtor's Counsel: Masafumi Iwama, Esq.
IWAMA LAW FIRM
333 5th Avenue S
Kent, WA 98032
Tel: (253) 520-7671
E-mail: matt@iwamalaw.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 two unsecured creditors filed
with the petition is available for free at:
http://bankrupt.com/misc/wawb12-21539.pdf
The petition was signed by Satwant Singh, member.
L'ALLIANCE FRANCAISE: Case Summary & Unsecured Creditor
-------------------------------------------------------
Debtor: L'Alliance Francaise De Miami, Inc.
aka The French Alliance Of Miami, Inc.
618 SW 8th Street
Miami, FL 33130
Bankruptcy Case No.: 12-37564
Chapter 11 Petition Date: November 15, 2012
Court: U.S. Bankruptcy Court
Southern District of Florida (Miami)
Judge: A. Jay Cristol
Debtor's Counsel: Christian S. Diaz, Esq.
ALIANZA LAW FIRM, PLLC
75 Valencia Avenue, 6th Floor
Coral Gables, FL 33134
Tel: (305) 443-8606
E-mail: nekeisha@alianzalaw.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
The petition was signed by Juan Antonio Hervada, president.
The Company's list of its largest unsecured creditors filed with
the petition contains only one entry:
Entity Nature of Claim Claim Amount
------ --------------- ------------
Mar 618, LLC 618 SW 8th Street $3,985,475
665 SW 8th Street Miami, FL 33130
Miami, FL 33130
LEHMAN BROTHERS: Brokerage Trustee Settles With Citigroup
---------------------------------------------------------
Bill Rochelle, the bankruptcy columnist for Bloomberg News,
reports that the trustee liquidating the Lehman Brothers Holdings
Inc. brokerage subsidiary made a settlement with Citigroup Inc.
that will bring in $360 million in cash while ending disputes and
lawsuits going back to the week the bankruptcies began in
September 2008.
According to the report, Citigroup affiliates provided various
banking and settlement services for the Lehman brokerage
subsidiary. A few days before bankruptcy, the bank seized
$1 billion to cover alleged debts owed by the Lehman broker.
Lehman trustee James Giddens sued the bank in March 2011 to
recover the $1 billion setoff and another $300 million in cash and
securities. Citigroup claimed the setoff was valid and asserted
another $440 million in setoff rights.
The settlement, the report relates, calls for the bank to pay the
trustee $360 million in cash and forgo claims to recover $75
million that was provisionally paid to Mr. Giddens early in the
liquidation. The $75 million represents a superpriority claim
that, if valid, would have come right behind payment of secured
claims and before any other unsecured claims or other priority
claims and expenses of the bankruptcy. In return, the bank will
have an approved secured claim for $1.04 billion, which it will
use to offset amounts the bank otherwise would owe Mr. Giddens.
In addition, the bank will have an approved unsecured claim for
about $255 million.
The bankruptcy court in New York will hold a Dec. 12 hearing for
approval of the settlement.
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. The Chapter 11 plan for the Lehman companies other than
the broker was confirmed in December 2011.
Lehman made its first payment of $22.5 billion to creditors in
April 2012 and a second payment of $10.2 billion on Oct. 1. A
third distribution is set for around March 30, 2013. The
brokerage is yet to make a first distribution to non-customers.
Bankruptcy Creditors' Service, Inc., publishes Lehman Brothers
Bankruptcy News. The newsletter tracks the Chapter 11 proceeding
undertaken by Lehman Brothers Holdings, Inc., and other
insolvency and bankruptcy proceedings undertaken by its
affiliates. (http://bankrupt.com/newsstand/or 215/945-700)
LEHMAN BROTHERS: Barclays Beats Trustee Over Length of Brief
------------------------------------------------------------
Bill Rochelle, the bankruptcy columnist for Bloomberg News,
reports that Barclays Plc can file a 20,000-word brief in the
$1.5 billion appeal pitting the London-based bank against the
trustee for the brokerage unit of Lehman Brothers Holdings Inc.
James W. Giddens, the Lehman brokerage trustee, gave the appeals
court a 16,500-word brief explaining why he's entitled to
$1.5 billion that a district judge took away. He refused to grant
permission for Barclays to file a 25,000-word brief.
According to the report, the U.S. Court of Appeals in Manhattan
ended the dispute by issuing an order on Nov. 16 saying Barclays
could have 20,000 words, or perhaps 90 pages, to explain why it
should keep the $1.5 billion and recover even more from the Lehman
trustee.
Mr. Giddens, the report relates, argues that due process was
violated because the parties changed material terms of the Lehman
sale in 2008 without bankruptcy court approval. Barclays' 20,000-
word brief is due for filing on Dec. 20. Mr. Giddens hopes to
overturn a ruling from June by U.S. District Judge Katherine B.
Forrest who concluded that the bankruptcy judge was wrong in
requiring Barclays to pay $1.5 billion.
The Barclay appeal in the court of appeals is Giddens v. Barclays
Capital Inc. (In re Lehman Brothers Holdings Inc.), 12-2328, 2nd
U.S. Circuit Court of Appeals (Manhattan). The Barclay appeal in
district court was Barclays Capital Inc. v. Giddens (In re Lehman
Brothers Inc.), 11-6052, U.S. District Court, Southern District of
New York (Manhattan).
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. The Chapter 11 plan for the Lehman companies other than
the broker was confirmed in December 2011.
Lehman made its first payment of $22.5 billion to creditors in
April 2012 and a second payment of $10.2 billion on Oct. 1. A
third distribution is set for around March 30, 2013. The
brokerage is yet to make a first distribution to non-customers.
Bankruptcy Creditors' Service, Inc., publishes Lehman Brothers
Bankruptcy News. The newsletter tracks the Chapter 11 proceeding
undertaken by Lehman Brothers Holdings, Inc., and other
insolvency and bankruptcy proceedings undertaken by its
affiliates. (http://bankrupt.com/newsstand/or 215/945-700)
LEHMAN BROTHERS: Trustee, BNY Mellon Ink Agreement to Lift Stay
---------------------------------------------------------------
The trustee liquidating Lehman Brothers Holdings Inc.'s brokerage
entered into an agreement to lift the automatic stay to allow
Bank of New York Mellon Trust Company N.A. to exercise its rights
with respect to certain collateral held at the bank.
A full-text copy of the agreement is available without charge
at http://bankrupt.com/misc/LBHI_StipBNYM110512.pdf
The collateral, which consists of investment securities and cash,
was posted in connection with a 1989 guaranteed investment
contract between Liberty National Bank and Trust Company of
Louisville and Shearson Lehman Hutton Investments, Inc.
BNY Mellon and the Lehman brokerage are successors to Liberty and
Shearson Lehman, respectively.
Hughes Hubbard & Reed LLP, the trustee's legal counsel, will
present the agreement to Judge James Peck for signature on
November 13. Objections are due by November 12.
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. The Chapter 11 plan for the Lehman companies other than
the broker was confirmed in December 2011.
Lehman made its first payment of $22.5 billion to creditors in
April 2012 and a second payment of $10.2 billion on Oct. 1. A
third distribution is set for around March 30, 2013. The
brokerage is yet to make a first distribution to non-customers.
Bankruptcy Creditors' Service, Inc., publishes Lehman Brothers
Bankruptcy News. The newsletter tracks the Chapter 11 proceeding
undertaken by Lehman Brothers Holdings, Inc., and other
insolvency and bankruptcy proceedings undertaken by its
affiliates. (http://bankrupt.com/newsstand/or 215/945-700)
LEHMAN BROTHERS: Trustee, Deutsche Bank Ink Deal to Settle Claims
-----------------------------------------------------------------
The trustee liquidating Lehman Brothers Holdings Inc.'s brokerage
and Deutsche Bank AG inked an agreement to settle claims stemming
from the early termination of their swap deal.
Under the terms of the settlement, Deutsche Bank is required to
pay $83.5 million to the trustee. In exchange, the claim filed
by the bank's affiliate, Deutsche Bank Securities Inc., will be
allowed as a general unsecured creditor claim against the Lehman
brokerage. The agreement is available without charge at
http://is.gd/0Vd929
Levine Lee LLP, the trustee's special counsel, will present the
agreement to Judge James Peck for signature on November 16.
Objections are due by November 15.
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. The Chapter 11 plan for the Lehman companies other than
the broker was confirmed in December 2011.
Lehman made its first payment of $22.5 billion to creditors in
April 2012 and a second payment of $10.2 billion on Oct. 1. A
third distribution is set for around March 30, 2013. The
brokerage is yet to make a first distribution to non-customers.
Bankruptcy Creditors' Service, Inc., publishes Lehman Brothers
Bankruptcy News. The newsletter tracks the Chapter 11 proceeding
undertaken by Lehman Brothers Holdings, Inc., and other
insolvency and bankruptcy proceedings undertaken by its
affiliates. (http://bankrupt.com/newsstand/or 215/945-700)
LEHMAN BROTHERS: 100% Recovery for CDO Losses After Win by PPB
--------------------------------------------------------------
Councils and charities that are estimated to have lost $250
million in investments on Lehman Brothers Holdings Inc.'s
financial products called collateralized debt obligations are
expected to recover almost all their losses, according to a
November 15 report by The Australian.
The investors are now likely to receive 100 cents in the dollar
after PPB Advisory reached a settlement with U.S. trusts holding
the funds, The Australian reported.
PPB Advisory is the liquidator of Lehman's Australian unit that
succeeded in unlocking hundreds of millions of dollars investors
put into notes in a CDO called Dante from trusts held in the U.S.
and the United Kingdom by Bank of New York Mellon and bonds
issued by GE.
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. The Chapter 11 plan for the Lehman companies other than
the broker was confirmed in December 2011.
Lehman made its first payment of $22.5 billion to creditors in
April 2012 and a second payment of $10.2 billion on Oct. 1. A
third distribution is set for around March 30, 2013. The
brokerage is yet to make a first distribution to non-customers.
Bankruptcy Creditors' Service, Inc., publishes Lehman Brothers
Bankruptcy News. The newsletter tracks the Chapter 11 proceeding
undertaken by Lehman Brothers Holdings, Inc., and other
insolvency and bankruptcy proceedings undertaken by its
affiliates. (http://bankrupt.com/newsstand/or 215/945-700)
LITHIUM TECHNOLOGY: Delays Form 10-Q for Third Quarter
------------------------------------------------------
Lithium Technology Corporation notified the U.S. Securities and
Exchange Commission that it requires additional time to complete
its quarterly financial statements and corresponding narratives
for management's discussion and analysis. As a result of these
factors, the Company has been unable to complete and file its
Form 10-Q for the period ended Sept. 30, 2012, without
unreasonable effort and expense.
About Lithium Technology
Plymouth Meeting, Pa.-based Lithium Technology Corporation is a
mid-volume production stage company that develops large format
lithium-ion rechargeable batteries to be used as a new power
source for emerging applications in the automotive, stationary
power, and national security markets.
The Company was not able to file its annual report for the period
ended Dec. 31, 2011, and quarterly report for the period ended
March 30, 2012.
For the nine months ended Sept. 30, 2011, the Company reported a
net loss of $12.26 million on $6.06 million of total revenue. The
Company reported a net loss of $7.25 million on $6.35 million
of products and services sales for the year ended Dec. 31, 2010,
compared with a net loss of $10.51 million on $7.37 million of
product and services sales during the prior year.
The Company's balance sheet at Sept. 30, 2011, showed $8.83
million in total assets, $35.09 million in total liabilities and a
$26.26 million total stockholders' deficit.
Going Concern
As reported by the TCR on April 8, 2011, Amper, Politziner &
Mattia, LLP, Edison, New Jersey, after auditing the Company's
financial statements for the year ended Dec. 31, 2010, noted that
the Company has recurring losses from operations since inception
and has a working capital deficiency that raise substantial doubt
about its ability to continue as a going concern.
Bankruptcy Warning
The Form 10-Q for the quarter ended Sept. 30, 2011, noted that the
Company's operating plan seeks to minimize its capital
requirements, but the expansion of its production capacity to meet
increasing sales and refinement of its manufacturing process and
equipment will require additional capital.
The Company raised capital through the sale of securities closing
in the second quarter of 2011 and realized proceeds from the
licensing of its technology pursuant to the terms of a licensing
agreement and the sale of inventory used in manufacturing its
batteries as part of the establishment of a joint venture in the
fourth quarter of 2011, but is continuing to seek other financing
initiatives and needs to raise additional capital to meet its
working capital needs, for the repayment of debt and for capital
expenditures. Such capital is expected to come from the sale of
securities. The Company believes that if it raises approximately
$4 million in additional debt and equity financings it would have
sufficient funds to meet its needs for working capital, capital
expenditures and expansion plans through the year ending Dec. 31,
2012.
No assurance can be given that the Company will be successful in
completing any financings at the minimum level necessary to fund
its capital equipment, debt repayment or working capital
requirements, or at all. If the Company is unsuccessful in
completing these financings, it will not be able to meet its
working capital, debt repayment or capital equipment needs or
execute its business plan. In that case the Company will assess
all available alternatives including a sale of its assets or
merger, the suspension of operations and possibly liquidation,
auction, bankruptcy, or other measures. These conditions raise
substantial doubt about the Company's ability to continue as a
going concern.
LMR LLC: Cash-Strapped Hotel Operator Files Bankruptcy
------------------------------------------------------
Robert Grattan, staff writer at Austin Business Journal, reported
that LMR LLC has filed for Chapter 11 bankruptcy protection after
a long struggle to pay off a $3.9 million loan that encumbered the
property. According to numbers compiled by the Austin Convention
and Visitors Bureau, the hotel's bankruptcy comes as the Austin
hotel market leads the state with a citywide year-to-date 69.1%
room occupancy and a July average room rate of $150.
LODGE LLC: Voluntary Chapter 11 Case Summary
--------------------------------------------
Debtor: The Lodge, LLC
c/o 5024 E. Lafayette Blvd.
Phoenix, AZ 85018
Bankruptcy Case No.: 12-24938
Chapter 11 Petition Date: November 16, 2012
Court: United States Bankruptcy Court
District of Arizona (Phoenix)
Judge: Sarah Sharer Curley
Debtor's Counsel: Bradley Jay Stevens, Esq.
JENNINGS, STROUSS & SALMON, PLC
One E Washington St #1900
Phoenix, AZ 85004-2554
Tel: (602) 262-5955
Fax: (602) 495-2729
E-mail: bstevens@jsslaw.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 Hugo Paulson, manager.
LONGVIEW POWER: Bank Debt Trades at 17% Off in Secondary Market
---------------------------------------------------------------
Participations in a syndicated loan under which Longview Power LLC
is a borrower traded in the secondary market at 82.70 cents-on-
the-dollar during the week ended Friday, Nov. 16, a drop of 0.60
percentage points from the previous week according to data
compiled by LSTA/Thomson Reuters MTM Pricing and reported in The
Wall Street Journal. The Company pays 575 basis points above
LIBOR to borrow under the facility. The bank loan matures on Oct.
31, 2017. The loan is one of the biggest gainers and losers among
192 widely quoted syndicated loans with five or more bids in
secondary trading for the week ended Friday.
Longview is a special purpose entity created to construct, own,
and operate a 695 MW supercritical pulverized coal-fired power
plant located in Maidsville, West Virginia, just south of the
Pennsylvania border and approximately 70 miles south of
Pittsburgh. The project is owned 92% by First Reserve Corporation
(First Reserve or sponsor), a private equity firm specializing in
energy industry investments, through its affiliate GenPower
Holdings (Delaware), L.P. (GenPower), and 8% by minority
interests.
LONGVIEW POWER: Bank Debt Trades at 14% Off in Secondary Market
---------------------------------------------------------------
Participations in a syndicated loan under which Longview Power LLC
is a borrower traded in the secondary market at 85.85 cents-on-
the-dollar during the week ended Friday, Nov. 16, a drop of 0.30
percentage points from the previous week according to data
compiled by LSTA/Thomson Reuters MTM Pricing and reported in The
Wall Street Journal. The Company pays 225 basis points above
LIBOR to borrow under the facility. The bank loan matures on Feb.
28, 2014. The loan is one of the biggest gainers and losers among
192 widely quoted syndicated loans with five or more bids in
secondary trading for the week ended Friday.
Longview is a special purpose entity created to construct, own,
and operate a 695 MW supercritical pulverized coal-fired power
plant located in Maidsville, West Virginia, just south of the
Pennsylvania border and approximately 70 miles south of
Pittsburgh. The project is owned 92% by First Reserve Corporation
(First Reserve or sponsor), a private equity firm specializing in
energy industry investments, through its affiliate GenPower
Holdings (Delaware), L.P. (GenPower), and 8% by minority
interests.
MARINA BIOTECH: Has Worldwide License Agreement with Mosanto
------------------------------------------------------------
In May 2012, Marina Biotech, Inc., together with its wholly-owned
subsidiaries MDRNA Research, Inc., and Cequent Pharmaceuticals,
Inc., entered into a worldwide exclusive Intellectual Property
License Agreement with Monsanto Company, a global leader in
agriculture and crop sciences, for Marina's delivery and chemistry
technologies. Under terms of the License Agreement, the Company
received $1.5 million in initiation fees, and may receive
royalties on product sales in the low single digit percentages.
A redacted copy of the License Agreement is available at:
http://is.gd/sr0rHc
About Marina Biotech
Marina Biotech, Inc., headquartered in Bothell, Washington, is a
biotechnology company focused on the discovery, development and
commercialization of nucleic acid-based therapies utilizing gene
silencing approaches such as RNA interference ("RNAi") and
blocking messenger RNA ("mRNA") translation. The Company's goal
is to improve human health through the development, either through
its own efforts or those of its collaboration partners and
licensees, of these nucleic acid-based therapeutics as well as the
delivery technologies that together provide superior treatment
options for patients. The Company has multiple proprietary
technologies integrated into a broad nucleic acid-based drug
discovery platform, with the capability to deliver novel nucleic
acid-based therapeutics via systemic, local and oral
administration to target a wide range of human diseases, based on
the unique characteristics of the cells and organs involved in
each disease.
On June 1, 2012, the Company announced that, due to its financial
condition, it had implemented a furlough of approximately 90% of
its employees and ceased substantially all day-to-day operations.
Since that time substantially all of the furloughed employees have
been terminated. As of Sept. 30, 2012, the Company had
approximately 11 remaining employees, including all of its
executive officers, all of whom are either furloughed or working
on reduced salary. As a result, since June 1, 2012, its internal
research and development efforts have been minimal, pending
receipt of adequate funding.
KPMG LLP, in Seattle, expressed substantial doubt about Marina
Biotech's ability to continue as a going concern following the
2011 financial results. The independent auditors noted that the
Company has ceased substantially all day-to-day operations,
including most research and development activities, has incurred
recurring losses, has a working capital and accumulated deficit
and has had recurring negative cash flows from operations.
The Company reported a net loss of $29.42 million on $2.24 million
of license and other revenue for 2011, compared with a net loss of
$27.75 million on $2.46 million of license and other revenue for
2010.
The Company's balance sheet at Dec. 31, 2011, showed
$11.75 million in total assets, $11.71 million in total
liabilities, and stockholders equity of $38,000.
May File for Bankruptcy
"We have experienced and continue to experience operating losses
and negative cash flows from operations, as well as an ongoing
requirement for substantial additional capital investment. We
expect that we will need to raise substantial additional capital
to continue our operations beyond Oct. 31, 2012. We are currently
pursuing a variety of funding options, including equity offerings,
partnering/co-investment, venture debt and commercial licensing
agreements for our technologies. There can be no assurance as to
the availability or terms upon which such financing and capital
might be available. If we are not successful in our efforts to
raise additional funds by Oct. 31, 2012, we may be required to
further delay, reduce the scope of, or eliminate one or more of
our development programs or discontinue operations altogether."
"As a result, there is a significant possibility that we will file
for bankruptcy or seek similar protection. Moreover, it is
possible that our creditors may seek to initiate involuntary
bankruptcy proceedings against us, which would force us to make
defensive voluntary filing(s) of our own. If we restructure our
debt or file for bankruptcy protection, it is very likely that our
common stock will be severely diluted if not eliminated entirely."
MARINA MILE: Release Doesn't Bar Fee Disgorgement by Professional
-----------------------------------------------------------------
Bill Rochelle, the bankruptcy columnist for Bloomberg News,
reports that the U.S. Court of Appeals in Atlanta ruled on Nov. 16
that a bankruptcy judge could order a professional to disgorge
$490,000 in fees that had been paid even though the confirmed
reorganization plan gave blanket releases to professionals.
The report recounts that two real estate brokers had been awarded
a $490,000 commission for selling a bankrupt company's real
property. After the plan was confirmed, parties in the case
discovered that the brokers had undisclosed interests in the
property. U.S. Bankruptcy Judge John K. Olson proceeded to
require disgorgement of the $490,000 fee. Judge Olson was
affirmed in January by U.S. District Judge Kenneth A. Marra in
Fort Lauderdale, Florida.
According to the report, the Eleventh Circuit appeals court
reached the same result. The unsigned opinion by the three-judge
appeals court said the release contained in the plan "did not
affect the bankruptcy court's authority over fees paid to those
professionals." Once the bankruptcy judge learned there had been
a failure to make proper disclosure, the court "had authority to
revisit" the fee award, the appeals court said.
The case in the appeals court is Denison v. Marina Mile Shipyard
Inc. (In re Marina Mile Shipyard Inc.), 12-10601, U.S. Court of
Appeals for the Eleventh Circuit (Atlanta). The case in district
court was Denison v. Marina Mile Shipyard Inc. (In re Marina Mile
Shipyard Inc.), 11-61398, U.S. District Court, Southern District
Florida (Miami).
METALDYNE LLC: Moody's Assigns 'B1' CFR; Outlook Stable
-------------------------------------------------------
Moody's Investors Service assigned ratings to new Metaldyne, LLC
-- Corporate Family Rating at B1 and Probability of Default Rating
at B2. In a related action, a B1 rating was assigned to the new
$620 million of senior secured bank credit facilities. The rating
assignment follows Metaldyne's announcement that it has entered
into a definitive agreement to be acquired by an affiliate of
American Securities LLC for $820 million plus related expenses.
Funding for transaction is expected to include a $545 million
senior secured term loan, the rollover of certain existing debt,
and $296.5 million of equity. The rating outlook is stable.
The following ratings were assigned:
Corporate Family Rating, B1;
Probability of Default Rating, B2;
B1 (LGD3, 30%), for the $75 million senior secured revolving
credit facility;
B1 (LGD3, 30%), for the $545 million senior secured term loan.
RATINGS RATIONALE
Metaldyne's B1 Corporate Family Rating reflects the company's high
debt burden resulting from the new secured term loan (a $176
million increase from the existing term loan) to be used to
support the company's purchase by American Securities, balanced by
the company's improving profit margins as the automotive industry
recovers. Pro forma for the transaction, Metaldyne's debt/EBITDA
is expected to approximate 3.6x (including Moody's standard
adjustments), or an increase of about 1.0x times resulting from
the buy-out. Yet, Metaldyne's profit margins have benefited from
rising automotive production, particularly in North America (about
50% of revenues), resulting in EBIT margins increasing to 13%
(including Moody's standard adjustments) for the LTM period ending
September 23, 2012, compared to 8.9% in fiscal 2010. Moody's
expects Metaldyne's competitive position as a supplier of
powertrain products will be maintained over the intermediate-term
and will continue to support strong profit margins. Further, the
B1 rating recognizes that while about 40% of Metaldyne's revenues
are generated in economically stressed Europe, it benefits from
about half of these revenues being positioned with stronger German
OEMs which are expected to be impacted less severely than southern
European OEMs.
The stable rating outlook incorporates Moody's belief that
Metaldyne's credit metrics will support the assigned rating over
the intermediate term.
Metaldyne is anticipated to maintain an adequate liquidity profile
over the near-term following the transaction, supported by cash on
hand and free cash flow generation, estimated at about 11% of debt
on a pro forma basis. The company is expected to have about $30
million of cash on hand following the close of the transaction.
Further supporting liquidity is Metaldyne's demonstrated ability
to generate positive free cash flow over the recent years, before
special dividends. Moody's expects this trend to continue over the
intermediate-term. Metaldyne's use of its accounts receivable
factoring program continues to pose a potential risk given that
this program might not be renewed on a timely basis. Metaldyne's
new $75 million revolving credit facility (a $35 million increase
over the existing level) is expected to be unfunded at close and
should remain largely unused over the near-term other than
supporting a modest amount of letters of credit. The primary
financial covenant under the secured credit facilities is expected
be a maximum net leverage ratio with initial ample cushion.
Metaldyne's rating or outlook could improve from continued
improvement in revenues, and operating performance resulting in
debt/EBITDA at 3.0x on a sustained basis and EBIT/interest
coverage sustained above 3.5x.
The outlook or rating could be lowered if North American
production declines or if European automotive production levels
deteriorate more rapidly than recent trends, resulting in weaker
profitability or a deterioration in liquidity. The outlook or
rating could be lowered if Debt/EBITDA were to approach 4.5x, if
free cash flow generation is not realized, or if shareholder
distributions are made resulting in leverage approaching the above
thresholds.
The principal methodology used in rating Metaldyne was the Global
Automotive Supplier Industry Methodology published in January
2009. Other methodologies used include Loss Given Default for
Speculative-Grade Non-Financial Companies in the U.S., Canada and
EMEA published in June 2009.
Metaldyne, LLC is a leading global manufacturer of highly
engineered metal-based components for light vehicle engine,
transmission and driveline applications for the global automotive
light vehicle market. The company is a wholly-owned subsidiary of
MD Investors Corporation which itself will be owned by affiliates
of American Securities. Revenues for 2011 approximated $1 billion.
MIRADA DEL LAGO: Case Summary & 2 Unsecured Creditors
-----------------------------------------------------
Debtor: Mirada Del Lago, LLC
P.O. Box 751241
Petaluma, CA 94975
Bankruptcy Case No.: 12-14204
Chapter 11 Petition Date: November 15, 2012
Court: U.S. Bankruptcy Court
District of New Mexico (Albuquerque)
Debtor's Counsel: David N. Hernandez, Esq.
DAVID N. HERNANDEZ & ASSOCIATES, PA
2221 Rio Grande Boulevard NW, #100
Albuquerque, NM 87104
Tel: (505) 843-7300
E-mail: dnhnm@yahoo.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 two unsecured creditors filed
with the petition is available for free at:
http://bankrupt.com/misc/nmb12-14204.pdf
The petition was signed by Mitchell Brown, President of The
Shepard's Group, Inc., managing member.
MJM I: Voluntary Chapter 11 Case Summary
----------------------------------------
Debtor: MJM I, Inc.
P.O. Box 64824
Tacoma, WA 98464
Bankruptcy Case No.: 12-47765
Chapter 11 Petition Date: November 15, 2012
Court: U.S. Bankruptcy Court
Western District of Washington (Tacoma)
Judge: Paul B. Snyder
Debtor's Counsel: Noel P. Shillito, Esq.
SHILLITO & GISKE, P.S.
1919 N. Pearl Street, Suite C2
Tacoma, WA 98406
Tel: (253) 572-4388
E-mail: shilgisk@comcast.net
Scheduled Assets: $1,676,700
Scheduled Liabilities: $1,450,000
The Company did not file a list of creditors together with its
petition.
The petition was signed by Mike Min, president.
NAUTICA LAKES: Response Deadline in DSC of Newark Dispute Extended
------------------------------------------------------------------
Bankruptcy Judge Robert A. Gordon signed off on a Stipulation and
Consent Order extending the time for Nautica Lakes, Inc., to file
an opposition or other response to the motion of D.S.C. of Newark
Enterprises, Inc., for order granting abstention. Judge Gordon
approved the stipulation on Nov. 15. The objection deadline was
moved to Nov. 12.
The Debtor has failed a Complaint for Declaratory Relief against
DSC captioned as, Nautica Lakes, Inc., v. D.S.C. of Newark
Enterprises, Inc., Adv. Proc. No. 12-00259 (Bankr. D. Md.).
A copy of the Court order dated Nov. 15 is available at
http://is.gd/uc0gVJfrom Leagle.com.
Nautica Lakes, Inc., based in Columbia, Maryland, filed for
Chapter 11 bankruptcy (Bankr. D. Md. Case No. 12-11820) on Feb. 2,
2012, estimating $1 million to $10 million in assets and debts.
The petition was signed by Bethany H. Hooper, senior vice
president and treasurer. Alan M. Grochal, Esq., at Tydings &
Rosenberg LLP, in Baltimore, represents the Debtor.
NEIMAN MARCUS: Moody's Rates $500-Mil. Add-On Term Loan 'B2'
------------------------------------------------------------
Moody's Investors Service rated Neiman Marcus Group, Inc. (NMG)
proposed $500 million add-on to its existing senior secured term
loan at B2. All other ratings are affirmed, including its
Corporate Family Rating of B2 and Speculative Grade Liquidity
rating of SGL-1. The rating outlook remains stable.
RATINGS RATIONALE
The proceeds of the proposed $500 million add-on facility will be
used to repay the existing $500 million senior subordinated notes.
Moody's views this refinancing positively as it will significantly
reduce NMG's interest expense. The existing pricing on the senior
subordinated notes is 10.375% which is significantly higher than
the pricing on the term loan of Libor + 3.5% with a 1.25% Libor
Floor. In addition, it will extend out NMG's debt maturities until
2018 from 2015.
The following ratings are affirmed and LGD point estimates
changed:
Corporate Family Rating at B2
Probability of Default Rating at B2
Senior secured term loan (including $500 million add-on) at B2
(LGD 4, to 53% from 48%)
Senior secured debentures due 2028 at B2 (LGD 4, to 53% from 48%)
Senior subordinated notes at Caa1 (LGD 6, 90%)
Speculative Grade Liquidity rating at SGL-1
The Caa1 rating on the senior subordinated notes will be withdrawn
upon their repayment in full.
NMG's B2 Corporate Family Rating reflects its high leverage with
debt to EBITDA of about 5.6 times. It also reflects that Moody's
expects NMG financial policy to favor its financial sponsor
shareholders thus leverage is likely to remain high. The rating
acknowledges NMG's moderate interest coverage with EBITA to
interest expense of 2.2x at July 28, 2012. The rating is supported
by Moody's belief that the luxury goods market is insulated from
certain economic pressures and capital markets volatility but is
exposed to a prolonged decline in the equity markets. Thus,
barring a sustained decline in the equity markets, NMG's
performance will likely remain solid. Positive ratings
consideration is also given to NMG's solid reputation in the
luxury goods market, strong execution ability, and very good
liquidity particularly its free cash flow generation.
The stable outlook reflects that NMG's earnings will continue to
improve as the luxury goods market continues to strengthen but
that leverage will remain high due to its sizable debt balances
which are not expected to materially change.
Ratings could be downgraded if NMG's operating performance trends
reverse such that debt to EBITDA will likely be sustained above
6.0 times or EBITA to interest expense will fall below 1.5 times.
Negative rating pressure could also develop should liquidity
materially deteriorate or the company's financial policy become
more aggressive.
Ratings could be upgraded should NMG's operating performance
improve and it appears the NMG will be able to achieve and sustain
debt to EBITDA below 5.0 times while maintaining EBITA to interest
expense above 2.0 times.
The principal methodology used in rating Neiman Marcus Group, Inc.
was the was the Global Retail Industry Methodology published in
June 2011. Other methodologies used include Loss Given Default for
Speculative-Grade Non-Financial Companies in the U.S., Canada and
EMEA published in June 2009.
Neiman Marcus Group, Inc., ("NMG") headquartered in Dallas, TX,
operates 42 Neiman Marcus stores, 2 Bergdorf Goodman stores, 6
CUSP stores, 34 clearance centers, and a direct business. Total
revenues are about $4.3 billion.
NELA ENTERPRISES: Voluntary Chapter 11 Case Summary
---------------------------------------------------
Debtor: NELA Enterprises, LLC
1749 Burlington
North Kansas City, MO 64116
Bankruptcy Case No.: 12-44740
Chapter 11 Petition Date: November 15, 2012
Court: U.S. Bankruptcy Court
Western District of Missouri (Kansas City)
Judge: Dennis R. Dow
Debtor's Counsel: Erlene W. Krigel, Esq.
KRIGEL & KRIGEL, P.C.
4550 Belleview Avenue
Kansas City, MO 64111
Tel: (816) 756-5800
Fax: (816) 756-1999
E-mail: ekrigel@krigelandkrigel.com
Scheduled Assets: $1,800,245
Scheduled Liabilities: $1,871,821
The Company did not file a list of creditors together with its
petition.
The petition was signed by Norman E. Morris, member.
NEONODE INC: Incurs $2.1 Million Net Loss in Third Quarter
----------------------------------------------------------
Neonode Inc. filed with the U.S. Securities and Exchange
Commission its quarterly report on Form 10-Q disclosing a net loss
of $2.14 million on $1.67 million of net revenues for the three
months ended Sept. 30, 2012, compared with a net loss of $1.93
million on $1.28 million of net revenues for the same period
during the prior year.
For the nine months ended Sept. 30, 2012, the Company reported a
net loss of $7.15 million on $4.81 million of net revenues,
compared with a net loss of $14.37 million on $2.11 million of net
revenues for the same period during the preceding year.
The Company reported a net loss of $17.14 million in 2011,
compared with a net loss of $31.62 million in 2010.
The Company's balance sheet at Sept. 30, 2012, showed $13.49
million in total assets, $3.82 million in total liabilities and
$9.66 million in total stockholders' equity.
"I am extremely pleased with our success in penetrating four new
high volume market segments. We currently have 13 design wins
with some of the largest office equipment OEMs and 12 design wins
for automotive infotainment systems, across a majority of the
global automotive OEMs. We have 4 design wins in the mobile phone
space, and are gaining significant attention in low-cost high-
volume feature phone segments. I am also very excited to see that
we are becoming the market's premier touch solution provider for
toys and gaming devices for kids. We have 5 design wins,
including the MEEP tablet made by Oregon Scientific released to
the market in August," stated Neonode CEO Thomas Eriksson.
"Although we have faced some near-term challenges, and the e-
reader market has not been as significant as initially expected,
we do expect most of our customers to launch other types of
exciting products in 2013. We remain optimistic about the coming
quarters and expect to achieve profitability and experience
significant growth during 2013," concluded Eriksson.
A copy of the Form 10-Q is available for free at:
http://is.gd/ThOMQR
About Neonode Inc.
Lafayette, Calif.-based Neonode Inc. (OTC BB: NEON)
-- http://www.neonode.com/-- provides optical touch screen
solutions for hand-held and small to midsize devices.
NET TALK.COM: Incurs $2 Million Net Loss in Sept. 30 Quarter
------------------------------------------------------------
Net Talk.com, Inc., filed with the U.S. Securities and Exchange
Commission its quarterly report on Form 10-Q disclosing a net loss
of $2.04 million on $1.53 million of revenue for the three months
ended Sept. 30, 2012, compared with a net loss of $2.88 million on
$1.03 million of revenue for the same period during the prior
year.
For the nine months ended Sept. 30, 2012, the Company reported a
net loss of $12.55 million on $4.09 million of revenue, compared
with a net loss of $24.96 million on $2.24 million of revenue for
the same period a year ago.
The Company's balance sheet at Sept. 30, 2012, showed $5.58
million in total assets, $20.52 million in total liabilities,
$7.20 million in redeemable preferred stock, and a $22.15 million
total stockholders' deficit.
A copy of the Form 10-Q is available for free at:
http://is.gd/o1WXM9
About Net Talk.com
Based in Miami, Fla., Net Talk.com, Inc., is a telephone company,
that provides, sells and supplies commercial and residential
telecommunication services, including services utilizing voice
over internet protocol technology, session initiation protocol
technology, wireless fidelity technology, wireless maximum
technology, marine satellite services technology and other similar
type technologies.
NEVADA CANCER: To Close Facility on Dec. 31
-------------------------------------------
Richard N. Velotta at Las Vegas Sun reports that representatives
of Comprehensive Cancer Centers of Nevada and the University of
California San Diego Health System are continuing negotiations for
CCCN to lease a portion of the Nevada Cancer Institute's Summerlin
facility.
According to the report, an institute spokesperson confirmed plans
to close Dec. 31, 2012. The closure was first reported by the Las
Vegas Review-Journal, which said it received a recording of
institute CEO Mickey Goldman addressing employees in a Nov. 5
meeting about closure plans.
The report says the plan represents another setback for the
institute, which filed for Chapter 11 bankruptcy protection after
being the target of several lawsuits in 2011 by professional staff
who were laid off. The UC-San Diego Health System purchased the
institute out of bankruptcy earlier this year.
The report relates UC-San Diego submitted the only qualified bid
and paid $18 million to take over the institute in January. At
the time, officials said they planned to maintain the center for
at least three years with the assistance of the institute's
fundraising arm, the Nevada Cancer Institute Foundation.
The report says a source familiar with the negotiations said an
announcement could come this week about the status of CCCN's plans
and how patients would be accommodated.
About Nevada Cancer Institute
Founded in 2002, Nevada Cancer Institute is a nonprofit cancer
institute committed to advancing the frontiers of knowledge of
cancer and reducing the burden of cancer on the people of Nevada.
It formerly maintained a state-of-the-art outpatient cancer
treatment and research facility in the Summerlin area of Las
Vegas.
Nevada Cancer Institute filed for bankruptcy (Bankr. D. Nev. Case
No. 11-28676) on Dec. 2, 2011, blaming mounting financial
pressures arising from the protracted decline in the economy,
decreases in medical reimbursement rates from managed care payor
entities, increases in operational costs, decreases in the amount
and availability of charitable donations, a reduction in research
funding opportunities and increased competition. Lisa Madar
signed the petition as secretary.
Klee, Tuchin, Bogdanoff & Stern LLP, serves as the Debtor's
bankruptcy counsel; Lewis and Roca LLP as reorganization co-
counsel; Alvarez & Marsal Healthcare Industry Group LLC as the
Debtor's restructuring advisors. Kurtzman Carson Consultants LLC
serves as the Debtor's claims and noticing agent.
Chief Bankruptcy Judge Mike K. Nakagawa, who oversees the case,
ruled in January that the appointment of a patient care ombudsman
is not necessary.
Robert J. Feinstein, Esq., Samuel R. Maizel, Esq., and Shirley s.
Cho., at Pachulski Stang Ziehl & Jones LLP, represent the
Official Committee of Unsecured Creditors as counsel. Lenard E.
Schwartzer, Esq., and Jeanette E. McPherson, Esq., at Schwartzer &
McPherson Law Firm, represents the Committee as local counsel.
Counsel for Bank of America, N.A., as agent for the prepetition
lenders, are Craig A. Barbarosh, Esq., and Karen B. Dine, Esq., at
Pillsbury Winthrop Shaw Pittman LLP.
The Debtor underwent a significant prepetition operational
restructuring, and, after filing for bankruptcy, sold key assets
to the Regents of the University of California, on behalf of its
UC San Diego Health System, for $18 million in a Court-approved
sale pursuant to Bankruptcy Code section 363 that closed Jan. 31,
2012. The Regents of the University of California on behalf of
its UC San Diego Health System, is represented by James W. Kapp,
III, Esq., and Gary B. Gertler, Esq., at McDermott Will & Emery.
NEDAK ETHANOL: Delays Q3 Form 10-Q for Lack of Resources
--------------------------------------------------------
NEDAK Ethanol, LLC, notified the U.S. Securities and Exchange
Commission on Form 12b-25 that it was unable to file its quarterly
report on Form 10-Q for the fiscal quarter ended Sept. 30, 2012,
within the prescribed time period given the Company's thin
staffing and limited financial resources.
As previously disclosed, the Company has suspended production at
its ethanol plant in response to the adverse economic and market
conditions impacting the ethanol industry. Also, the Company is
in default under its loan agreements with both its senior lender,
AgCountry Farm Credit Services, FLCA, and its tax increment
financing lender, Arbor Bank, and the Senior Lender accelerated
the repayment of all amounts due under the loan agreement and
informed the Company that it intends to exercise its remedies
under the loan agreement and take such actions as it deems
necessary or desirable to protect its interest in the collateral.
The Senior Lender recorded a Substitution of Trustee under the
Deed of Trust, Security Agreement, Assignment of Leases and Rents
and Fixture Financing Statement which secures the indebtedness
under the Senior Lender loan documents. The substitute trustee
recorded a Notice of Default and Election to Sell the trust
property. The trust property includes the plant site, the
transload site, the Company's leased property and easements. If
the Company does not cure the defaults under the Senior Lender
loan documents within the two months following the recording of
the Notice of Default and Election to Sell, the substitute trustee
will initiate proceedings to sell the trust property in order to
satisfy the unpaid obligations of the Company under the Senior
Lender loan documents.
The Company has limited internal resources as a result of the halt
in production of the Company's plant. The Company has devoted,
and continues to devote, its limited internal resources to
discussions with the Senior Lender, the TIF Lender and other
creditors in light of the existing defaults and the liquidity
issues facing the Company.
The Company is unable to provide a reasonable estimate of its
results of operations for the quarter ended Sept. 30, 2012.
About NEDAK Ethanol
Atkinson, Neb.-based NEDAK Ethanol, LLC
-- http://www.nedakethanol.com/-- operates a 44 million gallon
per year ethanol plant in Atkinson, Nebraska, and produces and
sells fuel ethanol and distillers grains, a co-product of the
ethanol production process. Sales of ethanol and distillers
grains began in January 2009.
NEDAK Ethanol reported a net loss of $781,940 on $152.11 million
of revenue in 2011, compared with a net loss of $2.08 million on
$94.77 million of revenue in 2010.
The Company's balance sheet at March 31, 2012, showed
$73.42 million in total assets, $33.68 million in total
liabilities, $10.80 million in preferred units Class B, and
$28.93 million in total members' equity.
Amends Agreement with AgCountry
In February 2007, the Company entered into a master credit
agreement with AgCountry Farm Credit Services FCA regarding a
senior secured credit facility. As of Dec. 31, 2010, and
throughout 2011, the Company was in violation of several loan
covenants required under the original credit agreement and
therefore, the Company was in default under the credit agreement.
However, the Company entered into a forbearance agreement with
AgCountry which remained effective until June 30, 2011. This
default resulted in all debt under the original credit agreement
being classified as current liabilities effective as of Dec. 31,
2010. The loan covenants under the original credit agreement
included requirements for minimum working capital of $6,000,000,
minimum current ratio of 1.20:1.00, minimum tangible net worth of
$41,000,000, minimum owners' equity ratio of 50%, and a minimum
fixed charge coverage ratio of 1.25:1.00, and also included
restrictions on distributions and capital expenditures.
On Dec. 31, 2011, the Company and AgCountry entered into an
amended and restated master credit agreement pursuant to which the
parties agreed to restructure and re-document the loans and other
credit facilities provided by AgCountry.
Under the amended agreement, the Company is required to make level
monthly principal payments of $356,164 through Feb. 1, 2018.
Beginning on Sept. 30, 2012, and the last day of the first,
second, and third quarters thereafter, the Senior Lender will make
a 100% cash flow sweep of the Company's operating cash balances in
excess of $3,600,000 to be applied to the principal balance. In
addition, the Company is required to make monthly interest
payments at the one month LIBOR plus 5.5%, but not less than 6.0%.
The interest rate was 6.0% as of Dec. 31, 2011. In addition to
the monthly scheduled payments, the Company made a special
principal payment in the amount of $7,105,272 on Dec. 31, 2011.
As of Dec. 31, 2011, and 2010, the Company had $26,000,000 and
$38,026,321 outstanding on the loan, respectively.
NEW RIVER DRY: 11th Cir. Affirms Ruling on Fee Disgorgement
-----------------------------------------------------------
The United States Court of Appeals for the Eleventh Circuit upheld
a lower court order that required Christopher "Kit" Denison and
his company, Marine Realty, Inc., to disgorge $490,000 in
commissions that they received after brokering the sale of New
River Dry Dock, Inc.'s marina property. The bankruptcy court had
granted summary judgment in favor of Marina Mile Shipyard, Inc.,
one of the creditors of the bankruptcy estate. The district court
affirmed the decision, prompting Mr. Denison to elevate the matter
to the Eleventh Circuit.
In 2006, New River Dry Dock, whose primary asset was a marina,
filed a petition for Chapter 11 bankruptcy. The debtor decided to
hire the Realtors as a real estate agent to sell the marina, and
submitted an application to the bankruptcy court for the approval
of the Realtors' employment. As part of the application, Mr.
Denison, one of the Realtors, submitted an unsworn declaration, in
which he attested that neither he nor Marine Realty held or
represented an interest adverse to the debtor, and that both were
"disinterested persons" within the meaning of 11 U.S.C. Sec.
101(14). For their services, the Realtors were to receive a
commission equal to 4% of the gross sale price. In October 2006,
the bankruptcy court approved the application for the Realtors'
employment and the proposed commission.
As part of his efforts to sell the marina, Mr. Denison contacted
Steve Israel, an investor with whom Mr. Denison had a prior
business relationship, and suggested that Mr. Israel submit a
"stalking horse" bid on the property. Mr. Israel eventually
agreed to submit a stalking horse bid of $12.25 million, far below
the marina's officially appraised value, and partnered with
another investor, Fred Scott, to provide most of the funds to
purchase the marina. There were no higher bids, and Mr. Denison
ultimately acted as a broker in the court-approved sale of the
marina for $12.25 million to SPVEF-SKID, LLC, a joint venture
company formed by Messrs. Scott and Israel for the purchase of the
marina. The sale closed in June 2007.
Sometime after the bankruptcy court's approval of the Realtors'
employment, but before the closing, Messrs. Scott and Israel
offered Mr. Denison the opportunity to manage the marina after the
closing, or to acquire an ownership interest in the marina. Mr.
Denison never refused the buyers' offers to be involved in
managing or owning the marina, and the buyers expected that Mr.
Denison would be involved after the closing. Additionally, Mr.
Denison performed numerous tasks on the buyers' behalf before the
closing, such as preparing capital expenditure schedules,
obtaining insurance on the marina, and meeting with prospective
contractors and tenants. Shortly after closing, Mr. Scott sent an
e-mail to Messrs. Denison, Israel, and Israel's attorney, stating,
in part: "I want to personally thank you all for getting to the
point we are at today. A lot of hard work by all got us ownership
of a valuable asset at a below market price . . . ." Two or three
months later, Denison formalized an agreement to manage the marina
and bought an ownership interest in it.
At no point prior to the closing did the Realtors disclose to the
bankruptcy court Mr. Denison's discussions with the buyers about
his intended post-closing involvement with the buyers and the
marina. The Realtors also failed to disclose to the bankruptcy
court that Mr. Denison paid $37,500 from his commission on the
sale to cover half of a "finder's fee" owed by the buyers to a
third party. Mr. Denison never disclosed to the court that he had
a business relationship with one of the buyers prior to being
employed by the debtor. Furthermore, under their contract with the
debtor, the Realtors were to receive a 4% commission amounting to
$490,000. However, the Realtors actually received a $535,000
payment, and admit that they were overpaid by $45,000.
After the sale of the marina, the bankruptcy court confirmed New
River Dry Dock's reorganization plan, which included a release by
the debtor and creditors of claims against professionals arising
out of the bankruptcy case.
Two years later, Marina Mile Shipyard, Inc., the largest unsecured
creditor of the debtor, alerted the bankruptcy court about Mr.
Denison's relationship with the buyers of the marina, Messrs.
Israel and Scott. The bankruptcy court sua sponte ordered the
Realtors to show cause why they should not disgorge their
commission fee. MMS also filed a separate motion seeking the
disgorgement of the Realtors' commission fees. A lengthy
litigation ensued between the Realtors and MMS over the commission
fees, and both parties filed motions for summary judgment on the
issue of disgorgement.
The bankruptcy court ordered the Realtors to repay, in
installments, the $45,000 (with interest) that the Realtors
received in excess of their authorized commission on the sale of
the marina. Although the Realtors never objected to this order,
and do not challenge it on appeal, they failed to comply with that
order and repay the $45,000 to the bankruptcy plan administrator.
MMS then filed an emergency motion to sequester $25,981.41 of
commissions that Marine Realty received from an unrelated real
estate transaction. The bankruptcy court granted MMS's motion and
ordered the sequestration of the Realtors' commission funds. Mr.
Denison filed a notice of exemption from garnishment under Fla.
Stat. Sec. 222.12 and requested a hearing on the matter. The
bankruptcy court, however, ultimately struck Mr. Denison's notice
of exemption and request for a hearing.
The bankruptcy court also granted MMS's motion for summary
judgment on the issue of disgorgement. The bankruptcy court
concluded that Mr. Denison had an interest adverse to the estate
while employed by the estate, in light of Mr. Denison's
undisclosed pre-closing relationship with the buyers. The
bankruptcy court ordered the Realtors to disgorge their $490,000
commission.
Mr. Denison contends that the bankruptcy court erred in ordering a
disgorgement of fees because the Chapter 11 plan released all
claims against professionals arising from the bankruptcy case.
The Eleventh Circuit disagreed, holding that the bankruptcy court
initially reviewed and approved Mr. Denison's fee without
knowledge that he had an interest adverse to the estate. Once the
court learned this fact, it had the authority to revisit Mr.
Denison's fee award.
The appellate case is, CHRISTOPHER "KIT" DENISON, MARINE REALTY,
INC., Plaintiffs-Appellants, v. MARINA MILE SHIPYARD, INC.,
Defendant-Appellee, No. 12-10601 (11th Cir.). A copy of the
Eleventh Circuit's Nov. 16, 2012 decision is available at
http://is.gd/MQNsdufrom Leagle.com.
About New River Dry Dock
Based in Fort Lauderdale, Florida, New River Dry Dock, Inc., filed
for chapter 11 protection on July 18, 2006 (Bankr. S.D. Fla. Case
No. 06-13274). James H. Fierberg, Esq., at Berger Singerman,
P.A., represents the Debtor in its restructuring efforts. Mindy
A. Mora, Esq., at Bilzin Sumberg Baena Price & Axelrod LLP
represents the Official Committee of Unsecured Creditors. When
the Debtor filed for protection from its creditors, it estimated
assets between $10 million and $50 million and its debts between
$1 million to $10 million.
The Bankruptcy Court confirmed New River Dry Dock's Chapter 11
Liquidation Plan in October 2007.
ORANGE COUNTY NURSERY: Minority Has Subordinated Claim, Not Equity
------------------------------------------------------------------
Bankruptcy Judge Geraldine Mund ruled that the Minority Voting
Trust of Orange County Nursery, Inc., holds a claim subordinated
to other unsecured claims and must be placed in its own class as
it is not "substantially similar" to other claims or interests.
Orange County Nursery's fourth amended plan of reorganization,
however, classifies the Minority in Class 7 (common stock).
According to Judge Mund, since the plan does not offer the
Minority treatment consistent with its priority, the Court and the
parties should consider appropriate next steps at the Nov. 20,
2012 status conference.
Section 7.6 of the Debtor's Fourth Amended Plan provided that
holders of common stock could retain their stock or elect (within
30 days of the effective date) to voluntarily cancel their shares
in exchange for a pro rata share of the liquidation value of the
Debtor as of the confirmation date. As the Minority holds a claim
and cannot be classified with common stock, Sec. 7.6 of the Plan
cannot be applicable to them, Judge Mund said.
Pursuant to Cal. Corp. Code Sec. 2000, on Nov. 21, 2008, after
extensive litigation, a California Superior Court valued the
Minority's 40.25% equity interest in the Debtor at $4,906,475 as
of Aug. 4, 2006, plus interest to the date of judgment for a total
of $5,249,928. The Superior Court Order also provided that the
Debtor could either pay that amount to the Minority or liquidate.
This ruling was appealed by a voting trust holding 50.25% of the
Debtor.
The Majority failed to obtain a stay from the Court of Appeal and
on Jan. 22, 2009, just before the time to pay the purchase price,
Orange County Nursery filed for bankruptcy. The Minority filed
claim #73 on May 14, 2009, asserting a liquidated total of
$6,008,424 ($5,249,928 per the Superior Court judgment and
$758,496 in pre-petition legal fees), and it also noted that it
was claiming an amount to be determined for post-petition fees
under Cal. Corp. Code Sec. 2000(c).
In the first amended plan, the Debtor classified the Minority as
an equity holder, who would receive nothing under the plan. The
bankruptcy court agreed with this classification, which the
Minority appealed. Later, the confirmation order and the
objection to claim were also appealed to the District Court and
were combined in one ruling, which was favorable to the Minority.
The Debtor then appealed to the Ninth Circuit, which dismissed
that appeal as interlocutory, noting that "the bankruptcy court
has not yet had the opportunity to exercise its fact-finding power
and value the claims at issue; by dismissing the appeal, we avoid
addressing the legal questions on an underdeveloped record."
A copy of the Court's Nov. 15, 2012 Supplemental Memorandum Of
Opinion is available at http://is.gd/r2VKxwfrom Leagle.com.
Orange County Nursery, Inc. -- http://www.ocnursery.com/--
located in Moonpark, Calif., supplies growers and landowners in
Orange and San Diego counties with a variety of nursery stock
including bareroot fruit and nut trees, ball and burlap citrus
trees, and ornamental plants. Orange County Nursery sought
chapter 11 protection (Bankr. C.D. Calif. Case No. 09-10165) on
Jan. 22, 2009, and is represented by David S. Kupetz, Esq., at
Sulmeyer Kupetz in Los Angeles. At the time of the filing, the
Debtor estimated assets of more than $10 million and debts of less
than $10 million.
OVERLAND STORAGE: Incurs $4.8 Million Net Loss in Q1 Fiscal 2013
----------------------------------------------------------------
Overland Storage, Inc., filed with the U.S. Securities and
Exchange Commission its quarterly report on Form 10-Q disclosing
a net loss of $4.86 million on $11.71 million of net revenue for
the three months ended Sept. 30, 2012, compared with a net loss of
$5.35 million on $14.07 million of net revenue for the same period
during the prior year.
The Company's balance sheet at Sept. 30, 2012, showed $32.08
million in total assets, $32.62 million in total liabilities and a
$537,000 total shareholders' deficit.
Eric Kelly, President and CEO of Overland Storage, said, "With the
successful launch of our new clustered NAS solution in October, we
have three significant new branded products that are now
positioned to gain traction in the marketplace as planned, and in
less than a year, we have built a significant pipeline of new
branded product opportunities that continues to grow. These new
products have significantly expanded our total addressable market
and have allowed us to participate in new opportunities not
previously available to us.
"While our fiscal first quarter has historically been a seasonally
down quarter, our lower than expected total revenue is largely due
to the difficult macroeconomic environment in Europe and longer
sales cycles, which we believe have similarly affected our
competitors. While we continued to win new business in Europe,
customers delayed taking product due to the market uncertainty,
which negatively affected our revenue across all our product
families and has tempered our outlook for our sales in the region.
As a result, we are not reiterating our guidance regarding
achieving non-GAAP profitability in the fourth quarter of calendar
2012, but we believe that with our strong branded product
portfolio and growing pipeline of new business, we can achieve
this profitability target by the end of our 2013 fiscal year."
A copy of the Form 10-Q is available for free at:
http://is.gd/FKAZSZ
About Overland Storage
San Diego, Calif.-based Overland Storage, Inc. (Nasdaq: OVRL) --
http://www.overlandstorage.com/-- is a global provider of unified
data management and data protection solutions designed to enable
small and medium enterprises (SMEs), corporate departments and
small and medium businesses (SMBs) to anticipate and respond to
change.
PATRIOT COAL: To Cease All Large-Scale Mountaintop-Removal Mining
-----------------------------------------------------------------
The Associate Press reports Patriot Coal Corporation has agreed to
become the first U.S. coal operator to phase out and eventually
stop all large-scale mountaintop-removal mining in central
Appalachia under an agreement reached with three environmental
groups that sued over pollution from several West Virginia
operations.
According to a statement on Nov. 15, Patriot said it has reached a
proposed settlement agreement with the Ohio Valley Environmental
Coalition, Inc., the West Virginia Highlands Conservancy, Inc. and
the Sierra Club regarding claims under the Clean Water Act
relating to surface mining activities in West Virginia.
As a result of the proposed settlement, the deadline for
compliance with selenium effluent limitations at outfalls under
the Hobet 22 permit will be extended from May 2013 until August
2014. Additionally, compliance schedules under the global consent
decree announced in January 2012 will be extended by 12 months.
In exchange, Patriot will agree to certain restrictions on large-
scale surface mining activities.
"This settlement agreement allows Patriot to defer up to $27
million of compliance-related cash outlays from 2012 and 2013 into
2014 and beyond, which improves our liquidity as we reorganize our
company and increases the likelihood that we will emerge from the
Chapter 11 process as a viable business," stated Patriot President
and Chief Executive Officer Bennett K. Hatfield. "Importantly,
this proposed settlement allows Patriot to continue mining
according to existing permits and is consistent with our long-term
business plan to focus capital on expanding higher-margin
metallurgical coal production and limiting thermal coal
investments to selective opportunities where geologic and
regulatory risks are minimized."
The settlement remains subject to approval by the Federal District
Court for the Southern District of West Virginia following a
public comment period, as well as approval by the Bankruptcy Court
for the Southern District of New York.
According to AP, the deal comes as Patriot tackles litigation that
must be resolved during those proceedings. The terms would be
binding on any subsidiaries it sells or spins off.
The report relates the agreement, presented to U.S. District Judge
Robert Chambers in Huntington for consideration, stemmed from
water pollution lawsuits filed by the Sierra Club, Ohio Valley
Environmental Coalition and West Virginia Highlands Conservancy.
The continuation or expansion of large-scale surface mining is no
longer in Patriot's best long-term interests, President Ben
Hatfield told the judge, according to the AP report.
AP relates, in exchange for phasing out mountaintop removal and
agreeing to caps on the amount of coal it produces from strip
mining, Patriot gets additional time to install selenium treatment
systems at several mines.
According to AP, word of the deal concerned the United Mine
Workers of America, even though it appears there will be no
immediate job losses. The union is battling Patriot to maintain
pension and health care benefits for retirees as the company
reorganizes.
AP notes mountaintop removal is a highly efficient but
particularly destructive form of strip mining unique to West
Virginia, Kentucky, Virginia, and Tennessee. Coal companies blast
apart mountain ridge tops to expose multiple coal seams. The
resulting rock and debris is dumped in streams, creating so-called
valley fills.
AP says the agreement caps the amount of coal that Patriot can
mine from surface operations at 6.5 million tons in 2014, falling
to 5 million tons in 2017. By January 2018, the amount is limited
to no more than 3 million tons a year. Under the settlement,
Patriot agrees to immediately retire the giant dragline machine at
its Catenary mine complex and to retire the dragline at the Hobet
mine complex in 2015. It allows Patriot to sell that equipment at
its discretion, as long as the buyers agree not to use them in
Kentucky, Tennessee, Virginia, or West Virginia.
AP says Patriot also will withdraw applications for two valley
fill permits that are pending with the U.S. Army Corps of
Engineers and surrender its right to a third permit. Patriot says
it will only conduct "small-scale surface mining" at existing and
planned underground mines. That lets the company move ahead with
plans to open the Huff Creek Surface mine next to a new
underground mine, AP notes.
The agreement also requires Patriot to make a $500,000 donation to
a nonprofit land-use organization of the plaintiffs' choosing and
requires Patriot to ask the U.S. Bankruptcy Court for permission
to pay the environmental group's $96,000 in legal fees, AP
relates.
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.
PENNSBURY VILLAGES: Voluntary Chapter 11 Case Summary
-----------------------------------------------------
Debtor: Pennsbury Villages Associates, LLC
220 W. Gay Street
West Chester, PA 19380
Bankruptcy Case No.: 12-20671
Chapter 11 Petition Date: November 15, 2012
Court: U.S. Bankruptcy Court
Eastern District of Pennsylvania (Philadelphia)
Judge: Jean K. FitzSimon
Debtor's Counsel: Thomas Daniel Bielli, Esq.
O'KELLY ERNST BIELLI & WALLEN
1600 Market Street, 25th Floor
Philadelphia, PA 19103
Tel: (215) 543-7182
Fax: (215) 391-4350
E-mail: tbielli@oelegal.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 Kevin J. Ryan, managing member.
PETTERS GROUP: Trustee Sues M&I Bank for Abetting Fraud
-------------------------------------------------------
Bill Rochelle, the bankruptcy columnist for Bloomberg News,
reports that BMO Harris Bank NA, as successor to M&I Marshall &
Ilsley Bank, was sued last week for aiding and abetting the Ponzi
scheme orchestrated by Thomas Petters. The suit filed in U.S.
Bankruptcy Court in Minneapolis by the Petters trustee alleges the
bank had "actual knowledge" of the fraud. Since $35.3 billion
flowed through the M&I account between 1993 and 2008, the trustee
contends the bank should be held liable for aiding and abetting a
fraud and for breach of fiduciary duty.
According to the report, the trustee didn't specify an amount of
damages being sought. Absent the bank's assistance, the trustee
contends the fraud would have been discovered sooner. The trustee
says the flow of money into and out of the account was "illogical"
given the bank's understanding of Petter's business model. The
trustee is seeking a jury trial.
The lawsuit in bankruptcy court is Kelley v. BMO Harris Bank NA,
12-04288, Bankr. D. Minn. (Minneapolis).
About Petters Group
Based in Minnetonka, Minn., Petters Group Worldwide LLC is a
collection of some 20 companies, most of which make and market
consumer products. It also works with existing brands through
licensing agreements to further extend those brands into new
product lines and markets. Holdings include Fingerhut (consumer
products via its catalog and Web site), SoniqCast (maker of
portable, WiFi MP3 devices), leading instant film and camera
company Polaroid (purchased for $426 million in 2005), Sun Country
Airlines (acquired in 2006), and Enable Holdings (online
marketplace and auction for consumers and manufacturers' overstock
inventory). Founder and chairman Tom Petters formed the company
in 1988.
Petters Company, Inc., is the financing and capital-raising unit
of Petters Group Worldwide.
Thomas Petters, the founder and former CEO of Petters Group, has
been indicted and a criminal proceeding against him is proceeding
in the U.S. District Court for the District of Minnesota.
Petters Company, Petters Group Worldwide and eight other
affiliates filed separate petitions for Chapter 11 protection
(Bankr. D. Minn. Lead Case No. 08-45257) on Oct. 11, 2008. In its
petition, Petters Company estimated its debts at $500 million and
$1 billion. Parent Petters Group Worldwide estimated its debts at
not more than $50,000.
Fruth, Jamison & Elsass, PLLC, represents Douglas Kelley, the duly
appointed Chapter 11 Trustee of Petters Company, Inc., et al.
Petters Aviation, LLC, and affiliates MN Airlines, LLC, doing
business as Sun Country Airlines, Inc., and MN Airline Holdings,
Inc., filed separate petitions for Chapter 11 bankruptcy
protection (Bankr. D. Minn. Case Nos. 08-45136, 08-35197 and
08-35198) on Oct. 6, 2008. Petters Aviation is a wholly owned
unit of Thomas Petters Inc. and owner of MN Airline Holdings, Sun
Country's parent company.
PGI INCORPORATED: Incurs $1.5 Million Net Loss in Third Quarter
---------------------------------------------------------------
PGI Incorporated filed with the U.S. Securities and Exchange
Commission its quarterly report on Form 10-Q disclosing a net loss
of $1.55 million on $7,000 of revenue for the three months ended
Sept. 30, 2012, compared with a net loss of $1.39 million on
$10,000 of revenue for the same period during the preceding year.
For the nine months ended Sept. 30, 2012, the Company reported a
net loss of $4.64 million on $22,000 of revenue, compared with a
net loss of $4.05 million on $47,000 of revenue for the same
period a year ago.
The Company reported a net loss of $5.48 million on $56,000 of
revenues for 2011, compared with a net loss of $4.93 million on
$46,000 of revenues for 2010.
The Company's balance sheet at Sept. 30, 2012, showed $1.39
million in total assets, $69.49 million in total liabilities and a
$68.10 million in stockholders' deficiency.
A copy of the Form 10-Q is available for free at:
http://is.gd/Zf4dN7
About PGI Incorporated
St. Louis, Mo.-based PGI Incorporated, a Florida corporation, was
founded in 1958, and up until the mid 1990's was in the business
of building and selling homes, developing and selling home sites
and selling undeveloped or partially developed tracts of land.
Over approximately the last 15 years, the Company's business focus
and emphasis changed substantially as it concentrated its sales
and marketing efforts almost exclusively on the disposition of its
remaining real estate. This change was prompted by its continuing
financial difficulties due to the principal and interest owed on
its debt.
Presently, the most valuable remaining asset of the Company is a
parcel of 366 acres located in Hernando County, Florida. The
Company also owns a number of scattered sites in Charlotte County,
Florida (the "Charlotte Property"), but most of these sites are
subject to easements which markedly reduce their value and/or
consist of wetlands of indeterminate value. As of Dec. 31, 2011,
the Company also owned six single family lots, located in Citrus
County, Florida.
As of Dec. 31, 2011, the Company had no employees, and all
services provided to the Company are through contract services.
In the auditors' report accompanying the consolidated financial
statements for the year ended Dec. 31, 2011, BKD, LLP, in St.
Louis, Missouri, expressed substantial doubt about PGI
Incorporated's ability to continue as a going concern. The
independent auditors noted that the Company has a significant
accumulated deficit, and is in default on its primary debt,
certain sinking fund and interest payments on its convertible
subordinated debentures and its convertible debentures.
PHARMACEUTICAL RESEARCH: Moody's Assigns 'B2' CFR; Outlook Stable
-----------------------------------------------------------------
Moody's Investors Service assigned a Corporate Family Rating and
Probability of Default Rating of B2 to Pharmaceutical Research
Associates, Inc. ("PRA"). Concurrently, Moody's assigned a B1
rating to the proposed first lien senior secured credit facility,
which will include a $360 million term loan and a $40 million
revolving credit facility. Moody's also assigned a Caa1 rating to
the proposed $135 million second lien senior secured term loan.
The proceeds of the term loans, along with cash on hand, will be
used to refinance all of the existing debt of PRA International
(Delaware), a parent company of PRA, and Pharmaceutical Research
Associates Group, BV, a subsidiary of PRA, as well as potentially
pay a dividend of up to $150 million. The rating outlook is
stable.
Ratings Assigned to Pharmaceutical Research Associates, Inc.
Corporate Family Rating of B2
Probability of Default Rating of B2
Proposed $40 million first lien senior secured revolving credit
facility, due 2017, rated B1 (LGD 3, 33%)
Proposed $360 million first lien senior secured term loan, due
2018, rated B1 (LGD 3, 33%)
Proposed $135 million second lien senior secured term loan, due
2019, rated Caa1 (LGD 5, 84%)
The outlook is stable
The following ratings will be withdrawn upon the closing of the
transaction and the repayment of outstanding debt obligations.
PRA International:
Corporate Family Rating of B2
Probability of Default Rating of B2
Senior secured revolving credit facility due 2013, rated Ba2
(LGD2, 15%)
Senior secured first-out term loan due 2014, rated Ba2 (LGD2, 15%)
Senior secured last-out term loan due 2014, rated B2 (LGD3, 48%)
Stable outlook
Pharmaceutical Research Associates Group, BV:
Senior secured revolving credit facility due 2013, rated Ba2
(LGD2, 15%)
Senior secured first-out term loan due 2014, rated Ba2 (LGD2, 15%)
Stable outlook
The rating actions are subject to the conclusion of the
transaction, as proposed, and Moody's review of final
documentation.
RATINGS RATIONALE
The B2 Corporate Family Rating reflects PRA's considerable
financial leverage, and its mid-tier scale versus several much
larger competitors. The ratings also reflect Moody's view that the
highly competitive industry will continue to face pricing pressure
and margin compression. The ratings are supported by PRA's strong
track record of execution of its growth strategy over the past
several years and Moody's expectation of continued revenue and
earnings growth, and positive free cash flow generation.
Moody's could upgrade PRA's ratings if the company continues to
grow its scale within the CRO industry (i.e., net service revenues
approaching $700 million) and maintains adjusted financial
leverage below 4.5 times and adjusted free cash flow to debt above
10%.
Moody's could downgrade the ratings if PRA experiences an elevated
level of contract cancellations or poor new business wins that
leads to top-line deterioration. Further, increased pricing
pressure or competitive pressures that lead to material erosion in
EBITDA margins could also have negative rating implications.
Specifically, if Moody's expects adjusted debt/EBITDA to be
sustained above 6.0 times or free cash flow to turn negative, the
ratings could be downgraded.
The principal methodology used in rating PRA International was the
Global Business & Consumer Service Industry Rating Methodology
published in October 2010. Other methodologies used include Loss
Given Default for Speculative-Grade Non-Financial Companies in the
U.S., Canada and EMEA published in June 2009.
Pharmaceutical Research Associates, Inc. is a contract research
organization ("CRO") that assists pharmaceutical and biotechnology
companies in developing drug compounds, biologics, and drug
delivery devices and gaining necessary regulatory approvals. The
company was acquired by Genstar Capital in 2007. PRA generated net
service revenues of approximately $585 million for the twelve
months ended September 30, 2012.
PINNACLE AIRLINES: Plan Filing Deadline Extended to Dec. 30
-----------------------------------------------------------
Wayne Risher at The Commercial Appeal reports the deadline for
Pinnacle Airlines Corp. to file a reorganization plan has been
extended to Dec. 30, 2012.
According to the report, Pinnacle struck a deal with Delta Air
Lines to extend the deadline after a bankruptcy judge in New York
rules on Pinnacle's motion to reject a labor agreement with its
pilots. The deadline was previously Nov. 12, 2012, under
Pinnacle's debtor-in-possession financing agreement with Delta.
The report relates Delta has agreed to provide Pinnacle with $74.3
million in debtor-in-possession financing. The loan was broken
down as $30 million in additional liquidity during bankruptcy and
a $44.3 million payoff of what Pinnacle owed Delta for the 2010
purchase of now-defunct Mesaba Aviation.
The report notes Pinnacle has proposed to emerge from bankruptcy
flying exclusively as a Delta Connection carrier. Pinnacle has
extracted labor concessions from each of its unionized workgroups
except the 2,700 pilots. However, pilot concessions would account
for nearly $60 million of $76 million a year in targeted cost
savings, the report adds.
The report says the company's motion to reject an agreement with
the Air Line Pilots Association was heard in bankruptcy court in
October, but the judge hasn't ruled yet.
About Pinnacle Airlines
Pinnacle Airlines Corp. (NASDAQ: PNCL) -- http://www.pncl.com/--
a $1 billion airline holding company with 7,800 employees, is the
parent company of Pinnacle Airlines, Inc.; Mesaba Aviation, Inc.;
and Colgan Air, Inc. Flying as Delta Connection, United Express
and US Airways Express, Pinnacle Airlines Corp. operating
subsidiaries operate 199 regional jets and 80 turboprops on more
than 1,540 daily flights to 188 cities and towns in the United
States, Canada, Mexico and Belize. Corporate offices are located
in Memphis, Tenn., and hub operations are located at 11 major U.S.
airports.
Pinnacle Airlines Inc. and its affiliates, including Colgan Air,
Mesaba Aviation Inc., Pinnacle Airlines Corp., and Pinnacle East
Coast Operations Inc. filed for Chapter 11 bankruptcy (Bankr.
S.D.N.Y. Lead Case No. 12-11343) on April 1, 2012.
Judge Robert E. Gerber presides over the case. Lawyers at Davis
Polk & Wardwell LLP, and Akin Gump Strauss Hauer & Feld LLP serve
as the Debtors' counsel. Barclays Capital and Seabury Group LLC
serve as the Debtors' financial advisors. Epiq Systems Bankruptcy
Solutions serves as the claims and noticing agent. The petition
was signed by John Spanjers, executive vice president and chief
operating officer.
Pinnacle Airlines' balance sheet at Sept. 30, 2011, showed $1.53
billion in total assets, $1.42 billion in total liabilities and
$112.31 million in total stockholders' equity. Debtor-affiliate
Colgan Air, Inc. disclosed $574,482,867 in assets and $479,708,060
in liabilities as of the Chapter 11 filing.
Delta Air Lines, Inc., the Debtors' major customer and post-
petition lender, is represented by David R. Seligman, Esq., at
Kirkland & Ellis LLP.
The official committee of unsecured creditors tapped Morrison &
Foerster LLP as its counsel, and Imperial Capital, LLC, as
financial advisors.
Pinnacle has the exclusive right to propose a reorganization plan
until Jan. 25.
PINNACLE AIRLINES: Judge Rules Pilots Must Give Specified Cuts
--------------------------------------------------------------
Bill Rochelle, the bankruptcy columnist for Bloomberg News,
reports that U.S. Bankruptcy Judge Robert E. Gerber in New York
handed down an opinion Nov. 16 saying Pinnacle Airlines Corp. will
be permitted to modify the contract with the pilots' union.
According to the report, Judge Gerber, ruling after a trial held
in October, concluded there is "necessity for dramatically
reducing its pilots' labor costs" because the existing contract is
the most costly in the regional airline industry. He said that
"immediate reductions" are "essential" for Pinnacle to "survive"
because the existing pilots' contract is "dramatically over
market."
Judge Gerber, the report relates, couldn't approve Pinnacle's
proposal for $59.6 million in concessions because the offer didn't
meet the "fair and equitable treatment test." The test would be
satisfied, Judge Gerber ruled, if Pinnacle were to revise the
offer to contain adequate stock or profit sharing to reward pilots
for their sacrifices if the business becomes profitable. The
judge said he would "almost certainly" approve a new company
proposal if it contains the changes he enumerated. Pinnacle
already has ratified contracts with concessions from the two other
unions representing flight attendants and dispatchers.
Judge Gerber, the report notes, rejected Pinnacle's argument that
it needs labor costs below those of the competition. He did agree
with the company that more concessions could be won from pilots
because wages for flight attendants and management already were
below market. Concessions from other unions kick in when pilots'
concessions become effective.
Pinnacle, the report adds, released a statement saying Judge
Gerber's decision draws a "clear path to a consensual agreement."
The company said the changes sought by the judge will be
"relatively easy to fix."
About Pinnacle Airlines
Pinnacle Airlines Corp. (NASDAQ: PNCL) -- http://www.pncl.com/--
a $1 billion airline holding company with 7,800 employees, is the
parent company of Pinnacle Airlines, Inc.; Mesaba Aviation, Inc.;
and Colgan Air, Inc. Flying as Delta Connection, United Express
and US Airways Express, Pinnacle Airlines Corp. operating
subsidiaries operate 199 regional jets and 80 turboprops on more
than 1,540 daily flights to 188 cities and towns in the United
States, Canada, Mexico and Belize. Corporate offices are located
in Memphis, Tenn., and hub operations are located at 11 major U.S.
airports.
Pinnacle Airlines Inc. and its affiliates, including Colgan Air,
Mesaba Aviation Inc., Pinnacle Airlines Corp., and Pinnacle East
Coast Operations Inc. filed for Chapter 11 bankruptcy (Bankr.
S.D.N.Y. Lead Case No. 12-11343) on April 1, 2012.
Judge Robert E. Gerber presides over the case. Lawyers at Davis
Polk & Wardwell LLP, and Akin Gump Strauss Hauer & Feld LLP serve
as the Debtors' counsel. Barclays Capital and Seabury Group LLC
serve as the Debtors' financial advisors. Epiq Systems Bankruptcy
Solutions serves as the claims and noticing agent. The petition
was signed by John Spanjers, executive vice president and chief
operating officer.
Pinnacle Airlines' balance sheet at Sept. 30, 2011, showed $1.53
billion in total assets, $1.42 billion in total liabilities and
$112.31 million in total stockholders' equity. Debtor-affiliate
Colgan Air, Inc. disclosed $574,482,867 in assets and $479,708,060
in liabilities as of the Chapter 11 filing.
Delta Air Lines, Inc., the Debtors' major customer and post-
petition lender, is represented by David R. Seligman, Esq., at
Kirkland & Ellis LLP.
The official committee of unsecured creditors tapped Morrison &
Foerster LLP as its counsel, and Imperial Capital, LLC, as
financial advisors.
Pinnacle has the exclusive right to propose a reorganization plan
until Jan. 25, 2013.
PINNACLE AIRLINE: Court Keeps Ruling on Pilots Contract Under Seal
------------------------------------------------------------------
Peg Brickley, writing for Dow Jones' Daily Bankruptcy Review,
reports that Judge Robert E. Gerber on Thursday issued a decision
under seal on Pinnacle Airlnes Corp.'s request to slash pilots'
pay. DBR says the airline's pilots may have to wait until Monday,
or later, to find out whether they're flying with a contract or
looking at cuts that will render their paychecks among the
smallest in the industry.
DBR notes Pinnacle pilot Tom Wychor, chairman of the pilots
union's master executive council, declined to comment Friday, as
did a representative for Pinnacle. An attorney for the company
did not return a call seeking comment on Judge Gerber's decision
on one of the biggest issues in the airline?s bankruptcy case.
The report notes Judge Gerber had given the combatants until close
of business Friday to proof the document, looking for "any
typographical or citation errors," "technical inaccuracies" or
slips that disclose confidential information. After he gets the
OK, the judge will then reveal publicly what he's ruled but not
the basis for the ruling, according to another court document.
DBR recounts Pinnacle is seeking to shave an average of $59.6
million a year in costs related to the pilot union contracts
between 2013 and 2018. At trial, the union questioned Pinnacle's
grasp of the mathematics of the situation.
About Pinnacle Airlines
Pinnacle Airlines Corp. (NASDAQ: PNCL) -- http://www.pncl.com/--
a $1 billion airline holding company with 7,800 employees, is the
parent company of Pinnacle Airlines, Inc.; Mesaba Aviation, Inc.;
and Colgan Air, Inc. Flying as Delta Connection, United Express
and US Airways Express, Pinnacle Airlines Corp. operating
subsidiaries operate 199 regional jets and 80 turboprops on more
than 1,540 daily flights to 188 cities and towns in the United
States, Canada, Mexico and Belize. Corporate offices are located
in Memphis, Tenn., and hub operations are located at 11 major U.S.
airports.
Pinnacle Airlines Inc. and its affiliates, including Colgan Air,
Mesaba Aviation Inc., Pinnacle Airlines Corp., and Pinnacle East
Coast Operations Inc. filed for Chapter 11 bankruptcy (Bankr.
S.D.N.Y. Lead Case No. 12-11343) on April 1, 2012.
Judge Robert E. Gerber presides over the case. Lawyers at Davis
Polk & Wardwell LLP, and Akin Gump Strauss Hauer & Feld LLP serve
as the Debtors' counsel. Barclays Capital and Seabury Group LLC
serve as the Debtors' financial advisors. Epiq Systems Bankruptcy
Solutions serves as the claims and noticing agent. The petition
was signed by John Spanjers, executive vice president and chief
operating officer.
Pinnacle Airlines' balance sheet at Sept. 30, 2011, showed $1.53
billion in total assets, $1.42 billion in total liabilities and
$112.31 million in total stockholders' equity. Debtor-affiliate
Colgan Air, Inc. disclosed $574,482,867 in assets and $479,708,060
in liabilities as of the Chapter 11 filing.
Delta Air Lines, Inc., the Debtors' major customer and post-
petition lender, is represented by David R. Seligman, Esq., at
Kirkland & Ellis LLP.
The official committee of unsecured creditors tapped Morrison &
Foerster LLP as its counsel, and Imperial Capital, LLC, as
financial advisors.
Pinnacle has the exclusive right to propose a reorganization plan
until Jan. 25.
PLC SYSTEMS: Incurs $3.2 Million Net Loss in Third Quarter
----------------------------------------------------------
PLC Systems Inc. filed with the U.S. Securities and Exchange
Commission its quarterly report on Form 10-Q disclosing a net loss
of $3.16 million on $212,000 of revenue for the three months ended
Sept. 30, 2012, compared with a net loss of $401,000 on $27,000 of
revenue for the same period during the prior year.
For the nine months ended Sept. 30, 2012, the Company reported a
net loss of $11.38 million on $595,000 of revenue, compared with a
net loss of $4.72 million on $482,000 of revenue for the same
period a year ago.
The Company's balance sheet at Sept. 30, 2012, showed $1.79
million in total assets, $16.85 million in total liabilities and a
$15.06 million total stockholders' deficit.
A copy of the Form 10-Q is available for free at:
http://is.gd/W0XYqe
About PLC Systems
Milford, Massachusetts-based PLC Systems Inc. is a medical device
company specializing in innovative technologies for the cardiac
and vascular markets. The Company's key strategic growth
initiative is its newest marketable product, RenalGuard(R).
RenalGuard is designed to reduce the potentially toxic effects
that contrast media can have on the kidneys when it is
administered to patients during certain medical imaging
procedures.
Following the 2011 financial results, McGladrey & Pullen, LLP, in
Boston, Massachusetts, expressed substantial doubt about PLC
Systems' ability to continue as a going concern. The independent
auditors noted that the Company has sustained recurring net losses
and negative cash flows from continuing operations.
The Company reported a net loss of $5.76 million for 2011,
compared with a net loss of $505,000 for 2010.
PROVIDENT COMMUNITY: Files Form 10-Q, Incurs $12K Net Loss in Q3
----------------------------------------------------------------
Provident Community Bancshares, Inc., filed with the U.S.
Securities and Exchange Commission its quarterly report on Form
10-Q disclosing a net loss to common shareholders of $12,000 on
$1.89 million of net interest income for the three months ended
Sept. 30, 2012, compared with a net loss to common shareholders of
$121,000 on $2.17 million of net interest income for the same
period during the prior year.
For the nine months ended Sept. 30, 2012, the Company reported a
net loss to common shareholders of $189,000 on $5.65 million of
net interest income, compared with a net loss to common
shareholders of $237,000 on $6.46 million of net interest income
for the same period a year ago.
The Company's balance sheet at Sept. 30, 2012, showed $354.44
million in total assets, $341.52 million in total liabilities and
$12.92 million in total shareholders' equity.
A copy of the Form 10-Q is available for free at:
http://is.gd/zl1nWc
About Provident Community
Rock Hill, South Carolina-based Provident Community Bancshares,
Inc., is the bank holding company for Provident Community Bank,
N.A. Provident Community Bancshares has no material assets or
liabilities other than its investment in the Bank. Provident
Community Bancshares' business activity primarily consists of
directing the activities of the Bank.
The Bank's operations are conducted through its main office in
Rock Hill, South Carolina and seven full-service banking centers,
all of which are located in the upstate area of South Carolina.
The Bank is regulated by the Office of the Comptroller of the
Currency, is a member of the Federal Home Loan Bank of Atlanta and
its deposits are insured up to applicable limits by the Federal
Deposit Insurance Corporation. Provident Community Bancshares is
subject to regulation by the Federal Reserve Board.
The Company reported a net loss of $190,000 on net interest income
of $8.5 million for 2011, compared with a net loss of
$13.8 million on net interest income of $8.4 million for 2010.
Total non-interest income was $3.3 million for 2011, as compared
to $3.5 million for 2010.
Consent Order
On Dec. 21, 2010, Provident Community Bank, N.A. entered into a
stipulation and consent to the issuance of a consent order with
the Office of the Comptroller of the Currency.
At Dec. 31, 2011, the Bank met each of the capital requirements
required by regulations, but was not in compliance with the
capital requirements imposed by the OCC in its Consent order.
The Bank is required by the consent order to maintain Tier 1
capital at least equal to 8% of adjusted total assets and total
capital of at least 12% of risk-weighted assets. However, so long
as the Bank is subject to the enforcement action executed with the
OCC on Dec. 21, 2010, it will not be deemed to be well-capitalized
even if it maintains the minimum capital ratios to be well-
capitalized. At Dec. 31, 2011, the Bank did not meet the higher
capital requirements required by the consent order and is
evaluating alternatives to increase capital.
QBEX ELECTRONICS: Case Summary & 20 Largest Unsecured Creditors
---------------------------------------------------------------
Debtor: Qbex Electronics Corporation, Inc.
ta QBEX
1606 NW 84th Avenue
Miami, FL 33126
Bankruptcy Case No.: 12-37551
Chapter 11 Petition Date: November 15, 2012
Court: U.S. Bankruptcy Court
Southern District of Florida (Miami)
Judge: Robert A. Mark
Debtor's Counsel: Robert A. Schatzman, Esq.
GRAYROBINSON, P.A.
1221 Brickell Avenue, #1600
Miami, FL 33131
Tel: (305) 416-6880
Fax: (305) 416-6887
E-mail: robert.schatzman@gray-robinson.com
- and ?
Steven J. Solomon, Esq.
GRAYROBINSON, P.A.
1221 Brickell Avenue #1600
Miami, FL 33131
Tel: (305) 416-6880
Fax: (305) 416-6887
E-mail: steven.solomon@gray-robinson.com
Scheduled Assets: $11,027,058
Scheduled Liabilities: $8,246,385
The petitions were signed by Jorge E. Alfonso, president.
Affiliate that filed separate Chapter 11 petition:
Entity Case No. Petition Date
------ -------- -------------
Qbex Colombia, S.A. 12-37558 11/15/12
Assets: $433,627
Liabilities: $5,792,217
A copy of Qbex Electronics' list of its 20 largest unsecured
creditors filed with the petition is available for free at:
http://bankrupt.com/misc/flsb12-37551.pdf
A copy of Qbex Colombia's list of its 10 unsecured creditors filed
with the petition is available for free at:
http://bankrupt.com/misc/flsb12-37558.pdf
REFCO INC: Ex-Mayer Brown Lawyer Convicted of Criminal Charges
--------------------------------------------------------------
The Wall Street Journal's Chad Bray reports that Joseph Collins, a
onetime Mayer Brown LLP partner and longtime lawyer for Refco
Inc., was convicted Friday of criminal charges in his second trial
over his role in a multibillion-dollar fraud at the now-defunct
commodities broker. Federal prosecutors accused Mr. Collins of
helping the owners and executives at Refco in a scheme to steal
more than $2 billion by concealing the firm's financial troubles.
WSJ recounts Mr. Collins was convicted of criminal charges in July
2009, but a federal appeals court set aside his conviction earlier
this year and ordered a new trial. The U.S. Second Circuit Court
of Appeals found in January that the original judge in his case
made mistakes in handling a juror. The report says Mr. Collins
faces up to 20 years in prison on each fraud count. Mr. Collins
was sentenced to seven years in prison following his prior trial.
Sentencing is set for March 20.
About Refco Inc.
Headquartered in New York, Refco Inc. -- http://www.refco.com/--
was a diversified financial services organization with operations
in 14 countries and an extensive global institutional and retail
client base. Refco's worldwide subsidiaries were members of
principal U.S. and international exchanges, and were among the
most active members of futures exchanges in Chicago, New York,
London and Singapore. Refco was also a major broker of cash
market products, including foreign exchange, foreign exchange
options, government securities, domestic and international
equities, emerging market debt, and OTC financial and commodity
products. Refco was one of the largest global clearing firms for
derivatives. The Company had operations in Bermuda.
The Company and 23 of its affiliates filed for Chapter 11
protection on October 17, 2005 (Bankr. S.D.N.Y. Case No.
05-60006). J. Gregory Milmoe, Esq., at Skadden, Arps, Slate,
Meagher & Flom LLP, represented the Debtors in their restructuring
efforts. Milbank, Tweed, Hadley & McCloy LLP, represented the
Official Committee of Unsecured Creditors. Refco reported
US$16.5 billion in assets and US$16.8 billion in debts to the
Bankruptcy Court on the first day of its Chapter 11 cases.
The Court confirmed the Modified Joint Chapter 11 Plan of
Refco Inc. and certain of its Direct and Indirect Subsidiaries,
including Refco Capital Markets, Ltd., and Refco F/X Associates,
LLC, on December 15, 2006. That Plan became effective on Dec. 26,
2006. Pursuant to the plan, RJM, LLC, was named plan
administrator to reorganized Refco, Inc., and its affiliates, and
Marc S. Kirschner as plan administrator to Refco Capital Markets,
Ltd.
RELIANCE INTERMEDIATE: S&P Gives 'BB+' Corp. Credit Rating
----------------------------------------------------------
Standard & Poor's Ratings Services assigned its 'BB+' long-term
corporate credit rating to Reliance Intermediate Holdings LP and
subsidiary Reliance LP, taking into account the entities'
consolidated credit profile. The outlook is stable.
"At the same time, Standard & Poor's raised its issue-level rating
on Reliance LP's senior secured notes to 'BBB' (two notches above
the corporate credit rating) from 'BBB-', and assigned its '1'
recovery rating to the debt, indicating an expectation of very
high (90%-100%) recovery in the event of a default," S&P said.
"In addition, we raised our issue-level rating on Reliance
Intermediate Holdings LP's senior secured notes to 'BB' (one notch
below the corporate credit rating) from 'BB-', and revised our
recovery rating on the debt to '5' from '4'. A '5' recovery rating
indicates our expectation of modest (10%-30%) recovery if a
default occurs," S&P said.
"The ratings on Reliance Intermediate Holdings LP and Reliance LP
reflect what Standard & Poor's views as the company's strong
business risk profile, characterized by the solid market position
and stable cash flows from its water heater rental business, which
contributes about three-quarters of the company's 2011 EBITDA,"
said Standard & Poor's credit analyst Donald Marleau. "The ratings
also reflect what we consider the company's aggressive financial
risk profile, evidenced by high debt leverage and large
distributions to equityholders," Mr. Marleau added.
"Our stable outlook is predicated on our view of a steady
consolidated financial risk profile, with debt to EBTIDA of about
4.5x and funds from operations (FFO) to debt of about 15%, as
Reliance adds debt slowly to support growth, while distributing
substantially all free cash flow to its sole shareholder."
"We expect that pressure on the Reliance ratings would emerge if
consolidated leverage approached 5x or FFO to debt dropped to
about 12%, which could occur if costs for customer acquisition or
retention rise amid higher debt for organic growth and
acquisitions. In such a scenario, distributions would likely be a
key factor in defining credit quality," S&P said.
"We believe that the prospects for a higher rating are limited
with the current financial risk profile, given that leverage is
likely to remain steady as debt rises along with higher earnings.
In addition, we believe the current financing structure that
compels distributions from the operating company to service the
holding company's US$350 million notes is critical to support
Alinda Infrastructure Fund I LP's ownership of Reliance," S&P
said.
REVEL ENTERTAINMENT: Bank Debt Trades at 51% Off
------------------------------------------------
Participations in a syndicated loan under which Revel
Entertainment Group LLC is a borrower traded in the secondary
market at 49.30 cents-on-the-dollar during the week ended Friday,
Nov. 16, a drop of 6.70 percentage points from the previous week
according to data compiled by LSTA/Thomson Reuters MTM Pricing and
reported in The Wall Street Journal. The Company pays 750 basis
points above LIBOR to borrow under the facility. The bank loan
matures on Feb. 15, 2017, and carries Moody's 'Caa1' rating and
Standard & Poor's 'CCC' rating. The loan is one of the biggest
gainers and losers among 192 widely quoted syndicated loans with
five or more bids in secondary trading for the week ended Friday.
Revel Entertainment -- http://www.revelresorts.com/-- owns Revel,
a newly opened beachfront resort that features more than 1,800
rooms with sweeping ocean views. The smoke-free resort has indoor
and outdoor pools, gardens, lounges, a 32,000-square-foot spa, a
collection of 14 restaurant concepts, and a casino. Revel is
located on the Boardwalk at Connecticut Avenue in Atlantic City,
New Jersey.
SEARCHMEDIA HOLDINGS: To Hold Annual General Meeting on Dec. 14
---------------------------------------------------------------
SearchMedia Holdings Limited will hold its 2012 annual general
meeting of shareholders at Rooms 902 and 903, 500 Weihei Road,
Jing An District, Shanghai, China 200041, on Dec. 14, 2012, at
10:00 a.m. local time for the following purposes:
1. To elect Robert Fried, Chi-Chuan (Frank) Chen, Paul M.
Conway, Yunan (Jeffrey) Ren, Steven D. Rubin, and Peter W.
H. Tan as directors of the Company;
2. To amend the Company's Amended and Restated 2008 Share
Incentive Plan by increasing the number of authorized
ordinary shares available for grant under the 2008 Plan from
3,000,000 ordinary shares to 4,500,000 ordinary shares;
3. By special resolution to change the name of the Company from
SearchMedia Holdings Limited to Tiger Media, Inc.; and
4. By special resolution to amend the Articles of Association
of the Company to reduce the minimum notice for a Director
meeting from seven days to two days.
The Board of Directors of the Company has fixed the close of
business on Oct. 29, 2012, as the record date for determining the
shareholders entitled to receive notice of and to vote at the
Meeting or any adjournment or postponement thereof.
About SearchMedia
SearchMedia is a leading nationwide multi-platform media company
and one of the largest operators of integrated outdoor billboard
and in-elevator advertising networks in China. SearchMedia
operates a network of high-impact billboards and one of China's
largest networks of in-elevator advertisement panels in 50 cities
throughout China. Additionally, SearchMedia operates a network of
large-format light boxes in concourses of eleven major subway
lines in Shanghai. SearchMedia's core outdoor billboard and in-
elevator platforms are complemented by its subway advertising
platform, which together enable it to provide a multi-platform,
"one-stop shop" services for its local, national and international
advertising clients.
Marcum Bernstein & Pinchuk LLP, in New York, issued a "going
concern" qualification on the consolidated financials statements
for the year ended Dec. 31, 2011. The independent auditors noted
that the Company has suffered recurring losses and has a working
capital deficiency of approximately $31,000,000 at Dec. 31, 2011,
which raises substantial doubt about its ability to continue as a
going concern.
Searchmedia Holdings reported a net loss of $13.45 million
in 2011, a net loss of $46.63 million in 2010, and a net loss of
$22.64 million in 2009.
The Company's balance sheet at June 30, 2012, showed US$39.18
million in total assets, US$41.22 million in total liabilities and
a US$2.04 million total shareholders' deficit.
SANUWAVE HEALTH: Incurs $1.4 Million Net Loss in Third Quarter
--------------------------------------------------------------
SANUWAVE Health, Inc., filed with the U.S. Securities and Exchange
Commission its quarterly report on Form 10-Q disclosing a net loss
of $1.44 million on $178,256 of revenue for the three months ended
Sept. 30, 2012, compared with a net loss of $2.07 million on
$161,678 of revenue for the same period during the prior year.
For the nine months ended Sept. 30, 2012, the Company reported a
net loss of $4.70 million on $627,153 of revenue, compared with a
net loss of $7.82 million on $577,180 of revenue for the same
period a year ago.
The Company's balance sheet at Sept. 30, 2012, showed $2.28
million in total assets, $7.80 million in total liabilities and a
$5.52 million total stockholders' deficit.
Bankruptcy Warning
"The continuation of our business is dependent upon raising
additional capital. We expect to devote substantial resources to
continue our research and development efforts, including clinical
trials. Because of the significant time it will take for our
products to complete the clinical trial process, and for us to
obtain approval from regulatory authorities and successfully
commercialize our products, we will require substantial additional
capital. We incurred a net loss of $4,707,212 for the nine months
ended September 30, 2012 and a net loss of $10,238,797 for the
year ended December 31, 2011. These operating losses create
uncertainty about our ability to continue as a going concern. As
of September 30, 2012, we had cash and cash equivalents of
$361,263. We are working with select accredited investors to
raise up to $1.25 million in capital in a private placement. The
accredited investors will receive a convertible promissory note
that will convert, at the Company?s option, at the completion of a
larger funding which is expected to close no later than the first
quarter of 2013. If these efforts are unsuccessful, we may be
forced to seek relief through a filing under the U.S. Bankruptcy
Code."
A copy of the Form 10-Q is available for free at:
http://is.gd/RNEz8U
About SANUWAVE Health
Alpharetta, Ga.-based SANUWAVE Health, Inc., is an emerging global
regenerative medicine company focused on the development and
commercialization of noninvasive, biological response activating
devices for the repair and regeneration of tissue, musculoskeletal
and vascular structures.
BDO USA, LLP, in Atlanta, Georgia, expressed substantial doubt
about SANUWAVE's ability to continue as a going concern, following
the Company's results for the fiscal year ended Dec. 31, 2011.
The independent auditors noted that the Company has suffered
recurring losses from operations and is economically dependent
upon future issuances of equity or other financing to fund ongoing
operations.
SEMGROUP LP: Investors May Assert Individual Claims vs. Officers
----------------------------------------------------------------
Bill Rochelle, the bankruptcy columnist for Bloomberg News,
reports that U.S. District Judge Sue L. Robinson in Delaware ruled
on Nov. 15 that limited partners have the right to sue the chief
executive officer on claims that don't belong exclusively to the
partnership.
According to the report, the case involved petroleum product
transporter and marketer SemGroup LP, which implemented a Chapter
11 plan in December 2009. The trustee for the creditors' trust
created under the plan filed papers in bankruptcy court to block
limited partners from suing the former CEO, successfully
contending that suit was founded on "derivative claims" that
belong solely to the company and thus to the trust under the plan.
Judge Robinson, the report relates, agreed that derivative claims
under Oklahoma law belonged only to the trust and therefore were
properly enjoined. She reversed the bankruptcy court for
enjoining claims the investors were entitled to assert
individually. To the extent the complaint alleged that the chief
executive "made negligent misrepresentations to them personally"
to induce them to make capital contributions, the limited partners
are entitled to sue on their own. Similarly, the investors were
entitled to sue on their own if they could prove the chief
executive owed a "direct fiduciary duty to them."
The case is Cottonwood Partnership LLP v. Kivisto (In re SemCrude
LP), 11-1174, U.S. District Court, District of Delaware
(Wilmington).
About SemGroup, L.P.
SemGroup, L.P. -- http://www.semgrouplp.com/-- is a midstream
service company that provides diversified services for end users
and consumers of crude oil, natural gas, natural gas liquids and
refined products. Services include purchasing, selling,
processing, transporting, terminalling and storing energy.
SemGroup serves customers in the United States, Canada, Mexico and
Wales.
SemGroup L.P. and its debtor-affiliates filed for Chapter 11
protection (Bankr. D. Del. Case No. 08-11525) on July 22, 2008.
John H. Knight, Esq., L. Katherine Good, Esq. and Mark
D. Collins, Esq., at Richards Layton & Finger; Harvey R. Miller,
Esq., Michael P. Kessler, Esq., and Sherri L. Toub, Esq., at Weil,
Gotshal & Manges LLP; and Martin A. Sosland, Esq., and Sylvia A.
Mayer, Esq., at Weil Gotshal & Manges LLP, represented the Debtors
in their restructuring efforts. Kurtzman Carson Consultants
L.L.C. served as the Debtors' claims agent. The Blackstone Group
L.P. and A.P. Services LLC acted as the Debtors' financial
advisors.
Margot B. Schonholtz, Esq., and Scott D. Talmadge, Esq., at Kaye
Scholer LLP; and Laurie Selber Silverstein, Esq., at Potter
Anderson & Corroon LLP, represented the Debtors' prepetition
lenders.
SemGroup L.P.'s affiliates, SemCAMS ULC and SemCanada Crude
Company, sought protection under the Companies' Creditors
Arrangement Act (Canada) on July 22, 2008. Ernst & Young, Inc.,
is the appointed monitor of SemCanada Crude Company and its
affiliates' reorganization proceedings before the Canadian
Companies' Creditors Arrangement Act.
SemGroup LP won confirmation from the Bankruptcy Court of its
Fourth Amended Plan of Reorganization on Oct. 28, 2008. The
Plan, which distributed more than $2.5 billion in value to
stakeholders, was declared effective on Nov. 30, 2008.
As part of the Plan, the Reorganized Debtors entered into two new
credit facilities aggregating $625 million in financing; entered
into a $300 million Second Lien Term Facility; created a new
corporate structure, including issuing shares of common stock and
warrants; and distributed approximately $500 million of cash and
approximately $1 billion in value of new common stock and warrants
to thousands of creditors in accordance with the Plan.
SHELL'S DISPOSAL: 3rd Cir. Affirms Accord With Lancaster
--------------------------------------------------------
The U.S. Court of Appeals for The Third Circuit affirmed a lower
court order enforcing a settlement agreement between Shell's
Disposal and Recycling, Inc. and the City of Lancaster.
Shell's Disposal has operated as a trash collection, waste
disposal, and recycling business since 1976, and has been licensed
to haul waste in Lancaster, Pennsylvania since 1990. As a
licensed waste hauler, Shell's Disposal entered into contracts
with residents and commercial establishments for the collection of
their garbage. Those contracts were generally for a one-year
term, and they automatically renewed absent action by the parties.
In September 2006, Lancaster's City Council passed an ordinance
that altered the waste management procedures for the city. The
Ordinance converted Lancaster from a "multi-hauler" system of
residential trash collection to a "single-hauler" system.
Although the Ordinance provided that it did not "impair the
obligations of any Existing Contract", Shell's Disposal believed
that the steps city officials took to begin implementing the
Ordinance had that effect. The Company objected to a brochure
sent to residents explaining the new program, and to other
interactions between city officials and citizens that it believed
prompted cancellations of its collection services. To remedy
these concerns, on Aug. 27, 2007, Shell's Disposal filed suit in
the Eastern District of Pennsylvania against Lancaster, its City
Council, and various city officials, asserting, inter alia,
federal constitutional claims under 42 U.S.C. Sec. 1983 and a
variety of state law claims.
Following mediation, Chief Magistrate Judge Carol Sandra Moore
Wells determined that the parties had reached a settlement and
issued an order marking the matter "SETTLED and CLOSED." A Mutual
Release and Settlement Agreement was subsequently drafted, which
provided, in substantial part, that Shell's Disposal would (1)
transfer its recycling business to another individual, (2)
terminate all residential contracts with city residents by
September 30, 2011, (3) abide by the provisions of the Ordinance,
and (4) withdraw its federal lawsuit with prejudice. In exchange,
the City would (1) forgive $4,500 in unpaid real estate taxes, (2)
mark satisfied $12,000 in fines and costs imposed upon Shell's
Disposal in other judicial proceedings with the City, (3) withdraw
a pending contempt proceeding against the Company, (4) pay the
Company's attorneys' fees and costs, (5) mark satisfied the
Company's outstanding loan balance with the City of approximately
$285,000, and (6) permit the Company to continue serving its
residential customers through September 2011.
When presented with the Written Agreement on Feb. 3, 2010,
however, Willie Shell, Sr., the owner and representative of
Shell's Disposal, refused to sign it, claiming to have never
agreed to enter into a binding settlement agreement with the City.
That refusal prompted the City to file a motion to enforce the
settlement agreement, and on May 28, 2010, Judge Wells held a
hearing to address Mr. Shell's concerns about its enforcement. At
that hearing, attorneys who had been present at the Jan. 15
mediation session, including counsel for Mr. Shell, testified that
the parties had all understood that they had reached a binding
settlement agreement at that session. The attorneys also testified
that the subsequently drafted Written Agreement accurately
reflected the terms of that settlement.
Over Mr. Shell's objections, Judge Wells concluded that a binding
settlement had been reached through an oral agreement, and that
the Written Agreement accurately captured its terms. She
formalized those conclusions in a Memorandum Opinion and Order
issued Dec. 30, 2011, granting the City's motion to enforce the
settlement agreement.
Shell's Disposal filed a motion for reconsideration of the
District Court's order in light of ongoing proceedings in
Bankruptcy Court. The Company had filed for Chapter 11 bankruptcy
in 2009, and its counsel in the bankruptcy proceedings advised the
District Court that "it [was their] position that the settlement
agreement between the parties is rendered null and void" by
provisions of the Bankruptcy Code allowing the debtor-in-
possession to reject executory contracts. Shell's Disposal had
not raised that argument at any prior point in the litigation.
Before the District Court ruled on that motion, which was
summarily denied, Shell's Disposal filed a timely appeal of Judge
Wells' enforcement order.
On June 26, 2012, the Bankruptcy Court confirmed Shell's
Disposal's Plan of Reorganization. That Plan includes the
provision: "The United States District Court for the Eastern
District Court of Pennsylvania has recently held that the Debtor-
in-Possession entered into a voluntary settlement agreement with
the City of Lancaster. The Debtor-in-Possession disputes that but
as part of this Amended Plan of Reorganization rejects pursuant to
Sec. 365 of the Bankruptcy Code any settlement agreement entered
into with the City of Lancaster, and intends to proceed with
litigation in the United States District Court or elsewhere."
The case before the appeals court is, SHELL'S DISPOSAL AND
RECYCLING, INC., Appellant, v. CITY OF LANCASTER; CITY COUNCIL; J.
RICHARD GRAY, MAYOR; DEPARTMENT OF PUBLIC WORKS; CHARLOTTE
KATZENMOYER, DIRECTOR; BUREAU OF SOLID WASTE AND RECYCLING;
MICHAEL J. DEVANEY, MANAGER OF SOLID WASTE AND RECYCLING;
LANCASTER COUNTY SOLID WASTE MANAGEMENT AUTHORITY; JAMES WARNER,
EXECUTIVE DIRECTOR OF THE LANCASTER COUNTY SOLID WASTE MANAGEMENT
AUTHORITY, No. 12-1730 (3rd Cir.). A copy of the Third Circuit's
Nov. 16 Opinion is available at http://is.gd/3hCl32from
Leagle.com.
SPANISH BROADCASTING: Files Form 10-Q, Incurs $2.4MM Loss in Q3
---------------------------------------------------------------
Spanish Broadcasting System, Inc., filed with the U.S. Securities
and Exchange Commission its quarterly report on Form 10-Q
disclosing a net loss applicable to common stockholders of
$2.42 million on $35.88 million of net revenue for the three
months ended Sept. 30, 2012, compared with net income applicable
to common stockholders of $6.30 million on $36.41 million of net
revenue for the same period during the prior year.
For the nine months ended Sept. 30, 2012, the Company reported a
net loss applicable to common stockholders of $11.35 million on
$102.58 million of net revenue, compared with net income
applicable to common stockholders of $10.09 million on $102.81
million of net revenue for the same period a year ago.
The Company's balance sheet at Sept. 30, 2012, showed
$473.83 million in total assets, $427.51 million in total
liabilities, $92.34 million in cumulative exchangeable redeemable
preferred stock, and a $46.03 million total stockholders' deficit.
A copy of the Form 10-Q is available for free at:
http://is.gd/UTKlpK
About Spanish Broadcasting
Headquartered in Coconut Grove, Florida, Spanish Broadcasting
System, Inc. -- http://www.spanishbroadcasting.com/-- owns and
operates 21 radio stations targeting the Hispanic audience. The
Company also owns and operates Mega TV, a television operation
with over-the-air, cable and satellite distribution and affiliates
throughout the U.S. and Puerto Rico. Its revenue for the twelve
months ended Sept. 30, 2010, was approximately $140 million.
* * *
In November 2010, Moody's Investors Service upgraded the corporate
family and probability of default ratings for Spanish Broadcasting
System, Inc., to 'Caa1' from 'Caa3' based on improved free cash
flow prospects due to better than anticipated cost cutting and the
expiration of an unprofitable interest rate swap agreement.
Moody's said Spanish Broadcasting's 'Caa1' corporate family rating
incorporates its weak capital structure, operational pressure in
the still cyclically weak economic climate, generally narrow
growth prospects (though Spanish language is the strongest growth
prospect) given the maturity and competitive pressures in the
radio industry, and the June 2012 maturity of its term loan
magnify this challenge.
In July 2010, Standard & Poor's Ratings Services raised its
corporate credit rating on Miami, Fla.-based Spanish Broadcasting
System Inc. to 'B-' from 'CCC+', based on continued improvement in
the company's liquidity position. The rating outlook is stable.
"The rating action reflects S&P's expectation that, despite very
high leverage, SBS will have adequate liquidity over the
intermediate term to meet debt maturities, potential swap
settlements, and operating needs until its term loan matures on
June 11, 2012," said Standard & Poor's credit analyst Michael
Altberg.
SWIFT ENERGY: S&P Retains 'B+' Rating on Senior Unsecured Debt
--------------------------------------------------------------
Standard & Poor's Ratings Services revised its recovery rating on
Houston-based Swift Energy Co.'s senior unsecured debt to '4',
indicating its expectation of average (30% to 50%) recovery in the
event of a payment default, from '3'. The issue-level rating on
Swift's unsecured debt remains 'B+' (same as the corporate credit
rating).
"The lower recovery expectation reflects the company's increased
borrowing base and commitment amounts, which were raised in
October 2012 to $450 million and $450 million from $375 million
and $300 million. The recovery analysis also incorporates an
updated PV10 valuation of proved reserves based on our revised
recovery price deck assumptions of $50 per barrel (bbl) for West
Texas Intermediate crude oil and $3.50 per million British thermal
unit (mmBtu) for Henry Hub natural gas (previously $45/bbl and
$4/mmBtu)," S&P said.
"The 'B+' corporate credit rating and stable outlook on Swift
incorporate the company's small and geographically concentrated
reserve base with a high proportion of proved undeveloped reserves
(65%), along with above-average finding and development costs.
Our ratings also reflect Swift's balanced production mix between
natural gas and oil/natural gas liquids, long proved reserve life,
and moderate debt leverage for the rating category," S&P said.
RATINGS LIST
Swift Energy Co.
Corporate credit rating B+/Stable/--
Recovery Rating Revised
To From
Senior unsecured debt B+ B+
Recovery rating 4 3
TALON INTERNATIONAL: Posts $186,800 Net Income in 3rd Quarter
-------------------------------------------------------------
Talon International, Inc., filed with the U.S. Securities and
Exchange Commission its quarterly report on Form 10-Q disclosing
net income of $186,865 on $11.28 million of net sales for the
three months ended Sept. 30, 2012, compared with a net loss of
$126,020 on $9.40 million of net sales for the same period during
the prior year.
For the nine months ended Sept. 30, 2012, the Company reported net
income of $652,369 on $33.21 million of net sales, compared with
net income of $129,377 on $31.38 million of net sales for the same
period during the prior year.
The Company's balance sheet at Sept. 30, 2012, showed
$17.84 million in total assets, $10.06 million in total
liabilities, $23.07 million in series B convertible preferred
stock, and a $15.29 million total stockholders' deficit.
A copy of the Form 10-Q is available for free at:
http://is.gd/3LOWCs
About Talon International
Woodland Hills, Calif.-based Talon International, Inc. (OTC BB:
TALN) -- http://www.talonzippers.com/-- is a global supplier of
apparel fasteners, trim and interlining products to manufacturers
of fashion apparel, specialty retailers, mass merchandisers, brand
licensees and major retailers. Talon manufactures and distributes
zippers and other fasteners under its Talon(R) brand, known as the
original American zipper invented in 1893. Talon also designs,
manufactures, engineers, and distributes apparel trim products and
specialty waistbands under its trademark names, Talon, Tag-It and
TekFit, to more than 60 apparel brands and manufacturers including
Wal-Mart, Kohl's, J.C. Penney, Victoria's Secret, Tom Tailor,
Abercrombie and Fitch, Polo Ralph Lauren, Phillips-Van Heusen,
Reebok and Juicy Couture. Talon has offices and facilities in the
United States, United Kingdom, Hong Kong, China, and Bangladesh.
TARGETED MEDICAL: Incurs $1.2 Million Comprehensive Loss in Q3
--------------------------------------------------------------
Targeted Medical Pharma, Inc., filed with the U.S. Securities and
Exchange Commission its quarterly report on Form 10-Q disclosing a
comprehensive loss of $1.24 million on $2.07 million of total
revenue for the three months ended Sept. 30, 2012, compared with a
comprehensive loss of $1.28 million on $2.45 million of total
revenue for the same period during the prior year.
For the nine months ended Sept. 30, 2012, the Company reported a
comprehensive loss of $5.04 million on $4.89 million of total
revenue, compared with a comprehensive loss of $2.81 million on
$6.86 million of total revenue for the same period a year ago.
The Company's balance sheet at Sept. 30, 2012, showed $11.06
million in total assets, $13.53 million in total liabilities and a
$2.47 million total shareholders' deficit.
A copy of the Form 10-Q is available for free at:
http://is.gd/7d6lrJ
About Targeted Medical
Los Angeles, Calif.-based Targeted Medical Pharma, Inc., is a
specialty pharmaceutical company that develops and commercializes
nutrient- and pharmaceutical-based therapeutic systems.
As reported in the TCR on July 19, 2012, EFP Rotenberg, LLP, in
Rochester, New York, expressed substantial doubt about Targeted
Medical's ability to continue as a going concern, following the
Company's results for the fiscal year ended Dec. 31, 2011. The
independent auditors noted that the Company has losses for the
year ended Dec. 31, 2011, totaling $4,177,050 as well as
accumulated deficit amounting to $4,098,612. "Further the Company
appears to have inadequate cash and cash equivalents of $147,364
as of Dec. 31, 2011, to cover projected operating costs for the
next 12 months. As a result, the Company is dependent upon
further financing, development of revenue streams with shorter
collection times and accelerating collections on our physician
managed and hybrid revenue streams."
TCI COURTYARD: Case Summary & 7 Unsecured Creditors
---------------------------------------------------
Debtor: TCI Courtyard, Inc.
dba Quail Hollow Apartments
1603 LBJ Freeway, Eight Floor
Dallas, TX 75234
Bankruptcy Case No.: 12-37284
Chapter 11 Petition Date: November 15, 2012
Court: U.S. Bankruptcy Court
Northern District of Texas (Dallas)
Judge: Stacey G. Jernigan
Debtor's Counsel: Eric A. Liepins, Esq.
ERIC A. LIEPINS, P.C.
12770 Coit Road, Suite 1100
Dallas, TX 75251
Tel: (972) 991-5591
E-mail: eric@ealpc.com
Scheduled Assets: $13,790,254
Scheduled Liabilities: $15,964,116
A copy of the Company's list of its seven unsecured creditors
filed with the petition is available for free at:
http://bankrupt.com/misc/txnb12-37284.pdf
The petition was signed by Steven Shelley, vice president.
TELKONET INC: Reports $513,000 Net Income in Third Quarter
----------------------------------------------------------
Telkonet, Inc., filed with the U.S. Securities and Exchange
Commission its quarterly report on Form 10-Q disclosing net income
of $513,210 on $3.28 million of total net revenue for the three
months ended Sept. 30, 2012, compared with net income of $9,336 on
$2.79 million of total net revenue for the same period during the
prior year.
For the nine months ended Sept. 30, 2012, the Company reported a
net loss of $58,430 on $8.67 million of total net revenue,
compared with net income of $1.11 million on $8.20 million of
total net revenue for the same period a year ago.
The Company's balance sheet at Sept. 30, 2012, showed
$14.23 million in total assets, $5.06 million in total
liabilities, $3.09 million in total redeemable preferred stock,
and $6.07 million in total stockholders' equity.
"We are very pleased with the results we reported today as they
are truly a testament of the devotion and commitment by the
Telkonet's executives, management team and employees. Less than
twenty-four months ago, we held approximately $0.1 million in
cash, almost $6.0 million in current liabilities and were
combatting continuing losses from operations. Today, as a result
of the continued execution of our strategic plan, expanding our
targeted markets, delivering innovative technology and
aggressively pursuing new domestic and international
opportunities, we've realized substantial improvements across
almost all of our financial metrics," stated Jason Tienor,
Telkonet's CEO. "However, we are far from satisfied with our
accomplishments. We remain committed to the continued focus on
growth and development of our Clean Technology energy management
business including a dedication to exploiting new and larger
revenue opportunities; creating additional synergistic industry
relationships; and delivering superior proprietary technology
solutions to our core markets."
A copy of the Form 10-Q is available for free at:
http://is.gd/sjeL6b
About Telkonet
Milwaukee, Wisconsin-based Telkonet, Inc., is a clean technology
company that develops and manufactures proprietary energy
efficiency and smart grid networking technology.
Following the 2011 results, Baker Tilly Virchow Krause, LLP, in
Milwaukee, Wisconsin, noted that the Company continues to incur
significant operating losses, has an accumulated deficit of
$118.34 million and has a working capital deficiency of $775,000
that raise substantial doubt about the Company's ability to
continue as a going concern.
The Company reported a net loss of $1.90 million in 2011,
compared with a net loss of $2.17 million in 2010.
THERMOENERGY CORP: Incurs $1.8 Million Net Loss in Third Quarter
----------------------------------------------------------------
ThermoEnergy Corporation filed with the U.S. Securities and
Exchange Commission its quarterly report on Form 10-Q disclosing
a net loss of $1.86 million on $2.03 million of revenue for the
three months ended Sept. 30, 2012, compared with a net loss of
$6.52 million on $1.19 million of revenue for the same period
during the prior year.
For the nine months ended Sept. 30, 2012, the Company reported a
net loss of $5.94 million on $5.62 million of revenue, compared
with a net loss of $15.39 million on $3.57 million of revenue for
the same period a year ago.
The Company's balance sheet at Sept. 30, 2012, showed $3.85
million in total assets, $13.06 million in total liabilities and a
$9.21 million total stockholders' deficiency.
A copy of the Form 10-Q is available for free at:
http://is.gd/7JDmn6
DEP Contract Termination
On Nov. 13, 2012, the Company was notified by the New York City
Department of Environmental Protection that Contract PO-98B
between the Company and the City of New York, dated May 11, 2010,
relating to the 26th Ward waste water pollution control plant has
been terminated effective Nov. 29, 2012. The Company understands
that the termination of the Contract was due to the DEP's decision
to pursue an alternate ammonia reduction project.
Under the Contract, the Company was engaged by the City of New
York to (a) provide engineering and design services with respect
to the rehabilitation of the Cake Storage Building, process
equipment, and miscellaneous systems at the 26th Ward waste water
pollution control plant, (b) supply and install the Company's
proprietary ARP equipment at the 26th Ward waste water pollution
control plant, and (c) operate and maintain the System at the 26th
Ward waste water pollution control plant for a period of twelve
months. The Company had expected to complete its services under
the Contract in or about June 2015.
To date, the Company has billed an aggregate of $14,839,000 for
goods and services under the Contract, of which amount $13,358,000
has been paid and $1,481,000 remains outstanding. The Company
expects to bill DEP an additional amount for costs associated with
termination of the Contract. Had the Contract remained in force
through completion, the Company expected to bill an additional
$7,702,000 for goods and services.
Revenues under the Contract represented approximately 80% of the
Company's total revenues during the fiscal year ended Dec. 31,
2011, approximately 81% of the Company's total revenues during the
nine months ended Sept. 30, 2012, and approximately 63% of the
Company's total revenues during the quarter ended Sept. 30, 2012.
About ThermoEnergy Corporation
Little Rock, Ark.-based ThermoEnergy Corporation is a clean
technologies company engaged in the worldwide development of
advanced municipal and industrial wastewater treatment systems and
carbon reducing clean energy technologies.
After auditing the 2011 results, Grant Thornton LLP, in Boston,
Massachusetts, expressed substantial doubt about the Company's
ability to continue as a going concern. The independent auditors
noted that the Company incurred a net loss for the year ended
Dec. 31, 2011, and, as of that date, the Company's current
liabilities exceeded its current assets by $3,387,000 and its
total liabilities exceeded its total assets by $4,603,000.
The Company reported a net loss of $17.38 million in 2011,
compared with a net loss of $14.85 million during the prior year.
THOMAS HELMKAMPF: Files for Chapter 11 Bankruptcy Protection
------------------------------------------------------------
Lisa Brown at St. Louis Post-Dispatch reports that Thomas
Helmkampf, the president of Helmkampf Construction, has filed for
Chapter 11 protection in St. Louis, Missouri, listing $2.5 million
in assets and $17.6 million in liabilities.
According to the report, multiple banks are among the unsecured
creditors, tied to real estate developments in which Mr. Helmkampf
holds ownership interests, according to court documents. His
creditors include Commerce Bank, which holds a $6.86 million
claim, PNC Bank, which holds a $4.1 million claim, and Lindell
Bank, which holds claims totaling more than $1.3 million.
The report relates Mr. Helmkampf's attorney, David Dare, declined
to comment about the filing. Mr. Helmkampf, who did not
immediately return calls for comment, has been president of
Helmkampf Construction for 21 years.
TOM MARTINO: May Transfer Ownership of Parking Lots
---------------------------------------------------
David Migoya at Denverpost.com reported that Bankruptcy Judge
Michael Romero overseeing the case of radio host Tom Martino gave
a thumbs-up to a deal that passes ownership of several downtown
Denver parking lots Mr. Martino had to a company held by fellow
radio pitchman and buddy Matt Klaess. According to the report,
the sale of the four lots, brokered by court-appointed trustee
Simon Rodriguez, nets the estate $350,000, which Mr. Rodriguez
said would likely have been far less if not for this deal, he said
in court papers seeking its approval.
The report noted that Martino-owned Sherman Properties, which he
once co-owned with two other since-departed investors, transferred
its ownership stake in Sherman to Mr. Martino's wife, Holly, on
Jan. 17, 2009, a day after the two investors gave up their
interests to Tom, court papers show. Later that year, Holly
signed over half ownership in Sherman to Klaess-owned American
Guaranty Equities for a sale price of $150,000. The assessed
value of the lots is more than $2 million.
The report related that in a separate deal, Mr. Klaess -- who's
had many financial deals with Mr. Martino through the years --
loaned Mr. Martino $1.85 million and got a 50 percent interest in
Mr. Martino's Troubleshooter Network, though bankruptcy records
now show TN is owned wholly by Mr. Martino and the loan is only a
lien, the report says.
According to the report, Mr. Rodriguez said the parking lots were
security on more than $17 million in notes Sherman had taken on
them, though the Martinos and Klaess dispute the validity of $14
million worth of it. According to the report, rather than fight
the sale from Mr. Klaess' AGE to Holly, Mr. Rodriguez brokered a
deal where AGE gets the lots on Sherman and Grant streets for
$350,000 and the money goes to the estate -- and presumably
creditors -- and Holly inks over her half to AGE.
The report notes Mr. Martino has since petitioned the court to
change his bankruptcy from a Chapter 7 to a Chapter 11 so he can
deal with matters of settling his year-old case himself.
TRANS ENERGY: Incurs $3.5 Million Net Loss in Third Quarter
-----------------------------------------------------------
Trans Energy, Inc., filed with the U.S. Securities and Exchange
Commission its quarterly report on Form 10-Q disclosing a net loss
of $3.50 million on $653,696 of revenue for the three months ended
Sept. 30, 2012, compared with net income of $616,173 on $5.31
million of revenue for the same period during the prior year.
For the nine months ended Sept. 30, 2012, the Company reported a
net loss of $7.71 million on $6.03 million of revenue, compared
with net income of $11.36 million on $10.83 million of revenue for
the same period a year ago.
The Company's balance sheet at Sept. 30, 2012, showed $73.78
million in total assets, $50.52 million in total liabilities and
$23.26 million in total stockholders' equity.
A copy of the Form 10-Q is available for free at:
http://is.gd/M2N4x4
About Trans Energy
St. Mary's, West Virginia-based Trans Energy, Inc. (OTC BB: TENG)
-- http://www.transenergyinc.com/-- is an independent energy
company engaged in the acquisition, exploration, development,
exploitation and production of oil and natural gas. Its
operations are presently focused in the State of West Virginia.
In its audit report on the Company's 2011 results, Maloney +
Novotny, LLC, in Cleveland, Ohio, noted that the Company has
generated significant losses from operations and has a working
capital deficit of $18.37 million at Dec. 31, 2011, which together
raises substantial doubt about the Company's ability to continue
as a going concern.
TRANS-LUX CORP: Posts $196,000 Net Income in Third Quarter
----------------------------------------------------------
Trans-Lux Corporation filed with the U.S. Securities and Exchange
Commission its quarterly report on Form 10-Q disclosing net income
of $196,000 on $5.92 million of total revenues for the three
months ended Sept. 30, 2012, compared with a net loss of $2.15
million on $7.11 million of total revenues for the same period
during the prior year.
For the nine months ended Sept. 30, 2012, the Company reported a
net loss of $735,000 on $18.39 million of total revenues, compared
with a net loss of $5.45 million on $17.12 million of total
revenues for the same period a year ago.
The Company's balance sheet at Sept. 30, 2012, showed $23.62
million in total assets, $20.37 million in total liabilities, and
$3.25 million in total stockholders' equity.
A copy of the Form 10-Q is available for free at:
http://is.gd/Le2raM
About Trans-Lux Corporation
Norwalk, Conn.-based Trans-Lux Corporation (NYSE Amex: TLX) is a
designer and manufacturer of digital signage display solutions for
the financial, sports and entertainment, gaming and leasing
markets.
The Company reported a net loss of $1.42 million in 2011, compared
with a net loss of $7.03 million in 2010.
TRENT GROUP: Case Summary & 20 Largest Unsecured Creditors
----------------------------------------------------------
Debtor: Trent Group, Inc.
dba Trent Electric
383 Bridle Path Ln
Ormond Beach, FL 32174
Bankruptcy Case No.: 12-07449
Chapter 11 Petition Date: November 16, 2012
Court: United States Bankruptcy Court
Middle District of Florida (Jacksonville)
Judge: Jerry A. Funk
Debtor's Counsel: Bryan K. Mickler, Esq.
Taylor J. King, Esq.
LAW OFFICES OF MICKLER & MICKLER
5452 Arlington Expressway
Jacksonville, FL 32211
Tel: (904) 725-0822
Fax: (904) 725-0855
E-mail: court@planlaw.com
Scheduled Assets: $745,051
Scheduled Liabilities: $1,960,939
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/flmb12-07449.pdf
The petition was signed by Trent Mihalic, president.
TRIAD PHARMACEUTICALS: Case Summary & 4 Unsecured Creditors
-----------------------------------------------------------
Debtor: Triad Pharmaceuticals, Inc.
700 West North Shore Drive
Hartland, WI 53029
Bankruptcy Case No.: 12-36442
Chapter 11 Petition Date: November 16, 2012
Court: United States Bankruptcy Court
Eastern District of Wisconsin (Milwaukee)
Judge: Pamela Pepper
Debtor's Counsel: Steven H. Silton, Esq.
HINSHAW & CULBERTSON LLP
333 South Seventh Street, Suite 2000
Minneapolis, MN 55402
Tel: (612) 333-3434
E-mail: ssilton@hinshawlaw.com
Scheduled Assets: $0
Scheduled Liabilities: $7,682,500
A copy of the Company's list of its four unsecured creditors filed
together with the petition is available for free at
http://bankrupt.com/misc/wieb12-36442.pdf
The petition was signed by Donna Petroff, chief financial officer.
Affiliate that filed separate Chapter 11 petition:
Petition
Debtor Case No. Date
------ -------- ----
H&P Industries, Inc. 12-31924 08/09/12
Triad Group, Inc. 12-31923 08/09/12
TRIBUNE CO: To Name Peter Liguori as New CEO; Wins FCC Approval
---------------------------------------------------------------
The Wall Street Journal's Mike Spector and Keach Hagey report that
Tribune Co. is expected to name television veteran Peter Liguori
as its next CEO, having cleared its last major hurdle to emerging
from bankruptcy on Friday, according to a person familiar with the
matter. Mr. Liguori, a former TV-programming executive at News
Corp and Discovery Communications Inc., has been chosen by
Tribune's new owners, a group of creditors led by Oaktree Capital
Management LP, Angelo, Gordon & Co. and J.P. Morgan Chase & Co.,
the person said.
The report says Mr. Liguori, however, won't be formally appointed
until Tribune emerges from bankruptcy in coming weeks and a new
board takes control, another person familiar with the matter said.
Mr. Liguori didn't respond to a request for comment.
WSJ also reports that the Federal Communications Commission, as
expected, approved Tribune's requests for the transfer of
broadcast licenses and cross-ownership waivers to the new entity
on Friday, clearing the way for the Company's bankruptcy exit.
About Tribune Co.
Headquartered in Chicago, Illinois, Tribune Co. --
http://www.tribune.com/-- is a media company, operating
businesses in publishing, interactive and broadcasting, including
ten daily newspapers and commuter tabloids, 23 television
stations, WGN America, WGN-AM and the Chicago Cubs baseball team.
The Company and 110 of its affiliates filed for Chapter 11
protection (Bankr. D. Del. Lead Case No. 08-13141) on Dec. 8,
2008. The Debtors proposed Sidley Austin LLP as their counsel;
Cole, Schotz, Meisel, Forman & Leonard, PA, as Delaware counsel;
Lazard Ltd. and Alvarez & Marsal North America LLC as financial
advisors; and Epiq Bankruptcy Solutions LLC as claims agent. As
of Dec. 8, 2008, the Debtors have $7,604,195,000 in total assets
and $12,972,541,148 in total debts. Chadbourne & Parke LLP and
Landis Rath LLP serve as co-counsel to the Official Committee of
Unsecured Creditors. AlixPartners LLP is the Committee's
financial advisor. Landis Rath Moelis & Company serves as the
Committee's investment banker. Thomas G. Macauley, Esq., at
Zuckerman Spaeder LLP, in Wilmington, Delaware, represents the
Committee in connection with the lawsuit filed against former
officers and shareholders for the 2007 LBO of Tribune.
Protracted negotiations and mediation efforts and numerous
proposed plans of reorganization filed by Tribune Co. and
competing creditor groups have delayed Tribune's emergence from
bankruptcy. Many of the disputes among creditors center on the
2007 leveraged buyout fraudulence conveyance claims, the
resolution of which is a key issue in the bankruptcy case. The
bankruptcy court has scheduled a May 16 hearing on Tribune's plan.
Judge Kevin J. Carey issued an order dated July 13, 2012,
overruling objections to the confirmation of Tribune Co. and its
debtor affiliates' Plan of Reorganization. Before it formally
emerges from bankruptcy, Tribune must still get approval from the
Federal Communications Commission on new broadcast licenses and
waivers for overlapping ownership of television stations and
newspapers in certain markets.
Bankruptcy Creditors' Service, Inc., publishes Tribune Bankruptcy
News. The newsletter tracks the chapter 11 proceeding undertaken
by Tribune Company and its various affiliates.
(http://bankrupt.com/newsstand/or 215/945-7000)
TRIBUNE CO: Bank Debt Trades at 24% Off in Secondary Market
-----------------------------------------------------------
Participations in a syndicated loan under which Tribune Co. is a
borrower traded in the secondary market at 75.85 cents-on-the-
dollar during the week ended Friday, Nov. 16, a drop of 0.67
percentage points from the previous week according to data
compiled by LSTA/Thomson Reuters MTM Pricing and reported in The
Wall Street Journal. The Company pays 300 basis points above
LIBOR to borrow under the facility. The bank loan matures on
May 17, 2014. The loan is one of the biggest gainers and losers
among 192 widely quoted syndicated loans with five or more bids in
secondary trading for the week ended Friday.
About Tribune Co.
Headquartered in Chicago, Illinois, Tribune Co. --
http://www.tribune.com/-- is a media company, operating
businesses in publishing, interactive and broadcasting, including
ten daily newspapers and commuter tabloids, 23 television
stations, WGN America, WGN-AM and the Chicago Cubs baseball team.
The Company and 110 of its affiliates filed for Chapter 11
protection (Bankr. D. Del. Lead Case No. 08-13141) on Dec. 8,
2008. The Debtors proposed Sidley Austin LLP as their counsel;
Cole, Schotz, Meisel, Forman & Leonard, PA, as Delaware counsel;
Lazard Ltd. and Alvarez & Marsal North America LLC as financial
advisors; and Epiq Bankruptcy Solutions LLC as claims agent. As
of Dec. 8, 2008, the Debtors have $7,604,195,000 in total assets
and $12,972,541,148 in total debts. Chadbourne & Parke LLP and
Landis Rath LLP serve as co-counsel to the Official Committee of
Unsecured Creditors. AlixPartners LLP is the Committee's
financial advisor. Landis Rath Moelis & Company serves as the
Committee's investment banker. Thomas G. Macauley, Esq., at
Zuckerman Spaeder LLP, in Wilmington, Delaware, represents the
Committee in connection with the lawsuit filed against former
officers and shareholders for the 2007 LBO of Tribune.
Protracted negotiations and mediation efforts and numerous
proposed plans of reorganization filed by Tribune Co. and
competing creditor groups have delayed Tribune's emergence from
bankruptcy. Many of the disputes among creditors center on the
2007 leveraged buyout fraudulence conveyance claims, the
resolution of which is a key issue in the bankruptcy case. The
bankruptcy court has scheduled a May 16 hearing on Tribune's plan.
Judge Kevin J. Carey issued an order dated July 13, 2012,
overruling objections to the confirmation of Tribune Co. and its
debtor affiliates' Plan of Reorganization. Before it formally
emerges from bankruptcy, Tribune must still get approval from the
Federal Communications Commission on new broadcast licenses and
waivers for overlapping ownership of television stations and
newspapers in certain markets.
Bankruptcy Creditors' Service, Inc., publishes Tribune Bankruptcy
News. The newsletter tracks the chapter 11 proceeding undertaken
by Tribune Company and its various affiliates.
(http://bankrupt.com/newsstand/or 215/945-7000)
TRIBUNE CO: Receives FCC Approvals to Consummate Chapter 11 Plan
----------------------------------------------------------------
Tribune Co. got final approval from the Federal Communications
Commission to transfer its broadcast licenses to its new owners,
Bloomberg News reported.
The FCC approved the license transfers and granted waivers so the
company could keep newspapers and nearby television stations in
five markets including New York. The approval was granted under
a procedure that didn't require a vote by the agency's five
commissioners, according to the report.
Tribune's Chief Executive Officer Eddy Hartenstein said they were
"extremely pleased" with the FCC action.
"This decision will enable the company to continue moving forward
toward emergence from Chapter 11, a process we expect to complete
over the course of the next several weeks," Mr. Hartenstein said
in an e-mailed news release.
FCC Commissioner Ajit Pai was also pleased with the approval,
saying it facilitates Tribune's exit from bankruptcy, grants the
company permanent waiver in the Chicago market, and allows it to
maintain its newspaper-broadcast combinations in New York, Los
Angeles, Miami-Ft. Lauderdale, and Hartford-New Haven markets.
"Given the financial conditions confronting the newspaper
industry, we should be applauding companies that continue to
operate daily newspapers rather than saddling them with
artificial and outdated regulatory burdens," Mr. Pai said in a
November 16 statement.
The approval is one of the two steps Tribune needs to emerge from
bankruptcy protection. In July, the company obtained an order
from the U.S. Bankruptcy Court for the District of Delaware,
which confirmed its Chapter 11 plan of reorganization.
The court order gave a group of senior creditors control of the
Chicago media company, which owns the Chicago Tribune, Los Angeles
Times, KTLA-TV Channel 5 and other media properties. The new
owners include JPMorgan Chase & Co. and hedge funds Oaktree
Capital Management and Angelo Gordon & Co.
Bankruptcy Appeals
New York-based investment fund Aurelius Capital Management LP and
other lower-ranking creditors previously filed an appeal to
overturn the bankruptcy court's July order. As part of that
effort Aurelius tried unsuccessfully to block Tribune from
leaving bankruptcy while the appeal went forward.
That appeal is still on file although both sides said previously
in court that once Tribune leaves bankruptcy, the appeal is
unlikely to disrupt how the ownership will be divided or change
the company's future, Bloomberg reported.
Often, bankruptcy appeals are dropped after a company exits
Chapter 11 protection because it can be difficult to reverse many
of the actions that take place when a bankruptcy case ends.
The junior creditors said the settlement of claims, which is part
of the restructuring plan is unreasonable, pointing out that
holders of some $2 billion in Tribune debt stand to recover very
little under the settlement, and are being barred from suing the
banks that financed the 2007 leveraged buyout of Tribune.
About Tribune Co.
Headquartered in Chicago, Illinois, Tribune Co. --
http://www.tribune.com/-- is a media company, operating
businesses in publishing, interactive and broadcasting, including
ten daily newspapers and commuter tabloids, 23 television
stations, WGN America, WGN-AM and the Chicago Cubs baseball team.
The Company and 110 of its affiliates filed for Chapter 11
protection (Bankr. D. Del. Lead Case No. 08-13141) on Dec. 8,
2008. The Debtors proposed Sidley Austin LLP as their counsel;
Cole, Schotz, Meisel, Forman & Leonard, PA, as Delaware counsel;
Lazard Ltd. and Alvarez & Marsal North America LLC as financial
advisors; and Epiq Bankruptcy Solutions LLC as claims agent. As
of Dec. 8, 2008, the Debtors have $7,604,195,000 in total assets
and $12,972,541,148 in total debts. Chadbourne & Parke LLP and
Landis Rath LLP serve as co-counsel to the Official Committee of
Unsecured Creditors. AlixPartners LLP is the Committee's
financial advisor. Landis Rath Moelis & Company serves as the
Committee's investment banker. Thomas G. Macauley, Esq., at
Zuckerman Spaeder LLP, in Wilmington, Delaware, represents the
Committee in connection with the lawsuit filed against former
officers and shareholders for the 2007 LBO of Tribune.
Protracted negotiations and mediation efforts and numerous
proposed plans of reorganization filed by Tribune Co. and
competing creditor groups have delayed Tribune's emergence from
bankruptcy. Many of the disputes among creditors center on the
2007 leveraged buyout fraudulence conveyance claims, the
resolution of which is a key issue in the bankruptcy case. The
bankruptcy court has scheduled a May 16 hearing on Tribune's plan.
Judge Kevin J. Carey issued an order dated July 13, 2012,
overruling objections to the confirmation of Tribune Co. and its
debtor affiliates' Plan of Reorganization. Before it formally
emerges from bankruptcy, Tribune must still get approval from the
Federal Communications Commission on new broadcast licenses and
waivers for overlapping ownership of television stations and
newspapers in certain markets.
Bankruptcy Creditors' Service, Inc., publishes Tribune Bankruptcy
News. The newsletter tracks the chapter 11 proceeding undertaken
by Tribune Company and its various affiliates.
(http://bankrupt.com/newsstand/or 215/945-7000)
TRIBUNE CO: To Name TV Veteran Peter Liguori as New CEO--
-------------------------------------------------------
The Wall Street Journal's Mike Spector and Keach Hagey report
that Tribune Co. is expected to name television veteran Peter
Liguori as its next CEO, having cleared its last major hurdle to
emerging from bankruptcy on Friday, according to a person
familiar with the matter.
Mr. Liguori, a former TV-programming executive at News Corp and
Discovery Communications Inc., has been chosen by Tribune's new
owners, a group of creditors led by Oaktree Capital Management
LP, Angelo, Gordon & Co. and J.P. Morgan Chase & Co., the person
said.
The report says Mr. Liguori, however, won't be formally appointed
until Tribune emerges from bankruptcy in coming weeks and a new
board takes control, another person familiar with the matter
said.
Mr. Liguori didn't respond to a request for comment, according to
the Journal.
WSJ also reported that the Federal Communications Commission, as
expected, approved Tribune's requests for the transfer of
broadcast licenses and cross-ownership waivers to the new entity
on Friday, clearing the way for the company's bankruptcy exit.
About Tribune Co.
Headquartered in Chicago, Illinois, Tribune Co. --
http://www.tribune.com/-- is a media company, operating
businesses in publishing, interactive and broadcasting, including
ten daily newspapers and commuter tabloids, 23 television
stations, WGN America, WGN-AM and the Chicago Cubs baseball team.
The Company and 110 of its affiliates filed for Chapter 11
protection (Bankr. D. Del. Lead Case No. 08-13141) on Dec. 8,
2008. The Debtors proposed Sidley Austin LLP as their counsel;
Cole, Schotz, Meisel, Forman & Leonard, PA, as Delaware counsel;
Lazard Ltd. and Alvarez & Marsal North America LLC as financial
advisors; and Epiq Bankruptcy Solutions LLC as claims agent. As
of Dec. 8, 2008, the Debtors have $7,604,195,000 in total assets
and $12,972,541,148 in total debts. Chadbourne & Parke LLP and
Landis Rath LLP serve as co-counsel to the Official Committee of
Unsecured Creditors. AlixPartners LLP is the Committee's
financial advisor. Landis Rath Moelis & Company serves as the
Committee's investment banker. Thomas G. Macauley, Esq., at
Zuckerman Spaeder LLP, in Wilmington, Delaware, represents the
Committee in connection with the lawsuit filed against former
officers and shareholders for the 2007 LBO of Tribune.
Protracted negotiations and mediation efforts and numerous
proposed plans of reorganization filed by Tribune Co. and
competing creditor groups have delayed Tribune's emergence from
bankruptcy. Many of the disputes among creditors center on the
2007 leveraged buyout fraudulence conveyance claims, the
resolution of which is a key issue in the bankruptcy case. The
bankruptcy court has scheduled a May 16 hearing on Tribune's plan.
Judge Kevin J. Carey issued an order dated July 13, 2012,
overruling objections to the confirmation of Tribune Co. and its
debtor affiliates' Plan of Reorganization. Before it formally
emerges from bankruptcy, Tribune must still get approval from the
Federal Communications Commission on new broadcast licenses and
waivers for overlapping ownership of television stations and
newspapers in certain markets.
Bankruptcy Creditors' Service, Inc., publishes Tribune Bankruptcy
News. The newsletter tracks the chapter 11 proceeding undertaken
by Tribune Company and its various affiliates.
(http://bankrupt.com/newsstand/or 215/945-7000)
TRIBUNE CO: Panel Seeks Revision of Document Depository Order
-------------------------------------------------------------
The committee of Tribune Co.'s unsecured creditors filed a motion
seeking revision of Judge Kevin Carey's order, which authorized
the company to create a centralized document depository.
The motion, if granted, would permit the litigation trustee to
use certain documents to prosecute the lawsuit filed by the
committee against Citigroup Global Markets Inc., and another
lawsuit against a certain Dennis FitzSimons.
The documents include those collected by the committee from its
investigation into a series of transactions that returned Tribune
to private ownership in 2007. They also include information
about the 2007 leveraged buyout that was exchanged in discovery
during the plan confirmation proceedings as well as information
about shareholder defendants that the committee obtained during
discovery related to Mr. FitzSimons' claims against former
Tribune shareholders.
A court hearing to consider approval of the motion is scheduled
for November 30. Objections are due by December 12.
About Tribune Co.
Headquartered in Chicago, Illinois, Tribune Co. --
http://www.tribune.com/-- is a media company, operating
businesses in publishing, interactive and broadcasting, including
ten daily newspapers and commuter tabloids, 23 television
stations, WGN America, WGN-AM and the Chicago Cubs baseball team.
The Company and 110 of its affiliates filed for Chapter 11
protection (Bankr. D. Del. Lead Case No. 08-13141) on Dec. 8,
2008. The Debtors proposed Sidley Austin LLP as their counsel;
Cole, Schotz, Meisel, Forman & Leonard, PA, as Delaware counsel;
Lazard Ltd. and Alvarez & Marsal North America LLC as financial
advisors; and Epiq Bankruptcy Solutions LLC as claims agent. As
of Dec. 8, 2008, the Debtors have $7,604,195,000 in total assets
and $12,972,541,148 in total debts. Chadbourne & Parke LLP and
Landis Rath LLP serve as co-counsel to the Official Committee of
Unsecured Creditors. AlixPartners LLP is the Committee's
financial advisor. Landis Rath Moelis & Company serves as the
Committee's investment banker. Thomas G. Macauley, Esq., at
Zuckerman Spaeder LLP, in Wilmington, Delaware, represents the
Committee in connection with the lawsuit filed against former
officers and shareholders for the 2007 LBO of Tribune.
Protracted negotiations and mediation efforts and numerous
proposed plans of reorganization filed by Tribune Co. and
competing creditor groups have delayed Tribune's emergence from
bankruptcy. Many of the disputes among creditors center on the
2007 leveraged buyout fraudulence conveyance claims, the
resolution of which is a key issue in the bankruptcy case. The
bankruptcy court has scheduled a May 16 hearing on Tribune's plan.
Judge Kevin J. Carey issued an order dated July 13, 2012,
overruling objections to the confirmation of Tribune Co. and its
debtor affiliates' Plan of Reorganization. Before it formally
emerges from bankruptcy, Tribune must still get approval from the
Federal Communications Commission on new broadcast licenses and
waivers for overlapping ownership of television stations and
newspapers in certain markets.
Bankruptcy Creditors' Service, Inc., publishes Tribune Bankruptcy
News. The newsletter tracks the chapter 11 proceeding undertaken
by Tribune Company and its various affiliates.
(http://bankrupt.com/newsstand/or 215/945-7000)
TXU CORP: Bank Debt Trades at 35% Off in Secondary Market
---------------------------------------------------------
Participations in a syndicated loan under which TXU Corp., now
known as Energy Future Holdings Corp., is a borrower traded in the
secondary market at 65.03 cents-on-the-dollar during the week
ended Friday, Nov. 16, a drop of 1.03 percentage points from the
previous week according to data compiled by LSTA/Thomson Reuters
MTM Pricing and reported in The Wall Street Journal. The Company
pays 450 basis points above LIBOR to borrow under the facility.
The bank loan matures on Oct. 10, 2017, and carries Moody's 'Caa1'
rating and Standard & Poor's 'CCC' rating. The loan is one of the
biggest gainers and losers among 192 widely quoted syndicated
loans with five or more bids in secondary trading for the week
ended Friday.
About Energy Future
Energy Future Holdings Corp., formerly known as TXU Corp., is a
privately held diversified energy holding company with a portfolio
of competitive and regulated energy businesses in Texas. Oncor,
an 80%-owned entity within the EFH group, is the largest regulated
transmission and distribution utility in Texas.
The Company delivers electricity to roughly three million delivery
points in and around Dallas-Fort Worth. EFH Corp. was created in
October 2007 in a $45 billion leverage buyout of Texas power
company TXU in a deal led by private-equity companies Kohlberg
Kravis Roberts & Co. and TPG Inc.
The Company's balance sheet at Dec. 31, 2011, showed $44.07
billion in total assets, $51.83 billion in total liabilities, and
a $7.75 billion total deficit.
Energy Future had a net loss of $1.91 billion on $7.04 billion of
operating revenues for the year ended Dec. 31, 2011, compared with
a net loss of $2.81 billion on $8.23 billion of operating revenues
during the prior year.
* * *
In late January 2012, Moody's Investors Service changed the rating
outlook for Energy Future Holdings Corp. (EFH) and its
subsidiaries to negative from stable. Moody's affirmed EFH's Caa2
Corporate Family Rating (CFR), Caa3 Probability of Default Rating
(PDR), SGL-4 Speculative Grade Liquidity Rating and the Baa1
senior secured rating for Oncor.
EFH's Caa2 CFR and Caa3 PDR reflect a financially distressed
company with limited flexibility. EFH's capital structure is
complex and, in our opinion, untenable which calls into question
the sustainability of the business model and expected duration of
the liquidity reserves.
The Company has accumulated net losses totaling $6.5 million since
inception.
A copy of the Form 10-Q is available at http://is.gd/vHALbh
About U-Swirl
Henderson, Nev.-based U-Swirl, Inc., U-Swirl, Inc., formerly
Healthy Fast Food, Inc., was incorporated in the state of Nevada
on Nov. 14, 2005. As of Sept. 30, 2012, the Company owned and
operated six U-Swirl Yogurt cafes.
L.L. Bradford & Company, LLC, in Las Vegas, Nevada, expressed
substantial doubt about U-Swirl's ability to continue as a going
concern, following the Company's results for the fiscal year ended
Dec. 31, 2011. The independent auditors noted that the Company
has incurred recurring losses and lower-than-expected sales.
UNITED BANCSHARES: Incurs $407,000 Net Loss in Third Quarter
------------------------------------------------------------
United Bancshares, Inc., filed with the U.S. Securities and
Exchange Commission its quarterly report on Form 10-Q disclosing
a net loss of $407,235 on $767,805 of total interest income for
the three months ended Sept. 30, 2012, compared with a net loss of
$281,054 on $818,629 of total interest income for the same period
during the prior year.
For the nine months ended Sept. 30, 2012, the Company reported a
net loss of $881,941 on $2.34 million of total interest income,
compared with a net loss of $757,807 on $2.45 million of total
interest income for the same period a year ago.
The Company incurred a net loss of $1.03 million in 2011, compared
with a net loss of $1.23 million in 2010.
The Company's balance sheet at Sept. 30, 2012, showed $67.93
million in total assets, $63.55 million in total liabilities and
$4.37 million in total shareholders' equity.
The Bank has entered into Consent Orders with the Federal Deposit
Insurance Corporation and the Pennsylvania Department of Banking
which, among other provisions, require the Bank to increase its
tier one leverage capital ratio to 8.5% and its total risk based
capital ratio to 12.5%. As of Sept. 30, 2012, the Bank's tier one
leverage capital ratio was 6.06% and its total risk based capital
ratio was 11.19%. The Bank's failure to comply with the terms of
the Consent Orders could result in additional regulatory
supervision or actions. The ability of the Bank to continue as a
going concern is dependent on many factors, including achieving
required capital levels, earnings and fully complying with the
Consent Orders.
As reported in the TCR on April 23, 2012, McGladrey & Pullen, LLP,
in Blue Bell, Pennsylvania, expressed substantial doubt about
United Bancshares' ability to continue as a going concern,
following the Company's results for the fiscal year ended Dec. 31,
2011. The independent auditors noted that the Company's and the
Bank's regulatory capital amounts and ratios are below the
required levels stipulated with Consent Orders between
the Company and its regulators. "Failure to meet the capital
requirements exposes the Company to regulatory sanctions that may
include restrictions on operations and growth, mandatory asset
disposition, and seizure of the Bank."
A copy of the Form 10-Q is available for free at:
http://is.gd/hNxDP0
About United Bancshares
Located in Philadelphia, Pennsylvania, United Bancshares, Inc., is
an African American controlled and managed bank holding company
for United Bank of Philadelphia, a commercial bank chartered in
1992 by the Commonwealth of Pennsylvania, Department of Banking.
UNIVERSAL BIOENERGY: Delays Form 10-Q for Third Quarter
-------------------------------------------------------
Universal Bioenergy, Inc., has been unable to complete its Form
10-Q for the quarter ended Sept. 30, 2012, within the prescribed
time because of delays in completing the preparation of its
financial statements and its management discussion and analysis.
Those delays are primarily due to the Company's management's
dedication of such management's time to business matters. This
has taken a significant amount of management's time away from the
preparation of the Form 10-Q and delayed the preparation of the
unaudited financial statements for the quarter ended Sept. 30,
2012.
About Universal Bioenergy
Headquartered in Irvine, California, Universal Bioenergy Inc.
develops markets alternative and natural energy products
including, natural gas, solar, biofuels, wind, wave, tidal, and
green technology products.
After auditing the 2011 results, Bongiovanni & Associates, CPA'S,
in Cornelius, North Carolina, noted that the Company has suffered
recurring operating losses, has an accumulated deficit, has
negative working capital, and has yet to generate an internal cash
flow that raises substantial doubt about its ability to continue
as a going concern.
The Company reported a net loss of $2.11 million in 2011,
compared with a net loss of $2 million in 2010.
The Company's balance sheet at June 30, 2012, showed $8.65 million
in total assets, $9.39 million in total liabilities and a $735,592
total stockholders' deficit.
UNIVERSITY GENERAL: To Report Revised Q2 Net Income of $4.7-Mil.
----------------------------------------------------------------
The Board of Directors of University General Health System Inc.,
based on the recommendation of the management, concluded on
Nov. 5, 2012, that the previously issued consolidated financial
statements for the quarter ended June 30, 2012, should not be
relied upon because of errors in accounting for Series C Variable
Rate Convertible Preferred Stock and the related common stock
warrants.
The Company made necessary adjustments to its consolidated
statement of income and consolidated balance sheet.
The amended report reflects net income attributable to the Company
of $4.73 million on $29.07 million of total revenues for the three
months ended Sept. 30, 2012, compared with net income attributable
to the Company of $5.08 million on $29.07 million of total
revenues as previously reported.
The Company recorded net income attributable to the Company of
$5.22 million on $48.16 million of total revenues for the six
months ended Sept. 30, 2012, compared with net income attributable
to the Company of $5.57 million on $48.16 million of total
revenues as previously reported.
The Company's restated balance sheet at June 30, 2012, showed
$127.52 million in total assets, $117.75 million in total
liabilities, $3.38 million in series C, convertible preferred
stock, and $6.37 million in total equity. The Company originally
reported $127.52 million in total assets, $113.46 million in total
liabilities and $14.05 million in total equity.
A copy of the regulatory filing is available for free at:
http://is.gd/5wdNnX
About University General
University General Health System, Inc., located in Houston, Texas,
is a diversified, integrated multi-specialty health care provider
that delivers concierge physician- and patient-oriented services.
UGHS currently operates one hospital and two ambulatory surgical
centers in the Houston area. It also owns a revenue management
company, a hospitality service provider and facility management
company, three senior living facilities and manages six senior
living facilities.
In the auditors' report accompanying the consolidated financial
statements for the year ended Dec. 31, 2011, Moss, Krusick &
Associates, LLC, in Winter Park, Florida, expressed substantial
doubt about University General's ability to continue as a going
concern. The independent auditors noted that the Company has
suffered recurring losses and negative operating cash flows, and
has negative working capital.
University General reported a net loss of $2.38 million in 2011,
following a net loss of $1.71 million in 2010.
UPPER CRUST: Pizza Chain Closure Left 140 Workers Jobless
---------------------------------------------------------
Craig Douglas at Boston Business Journal reports that the Upper
Crust pizza chain has closed most of its restaurants as its owners
grapple with a wave of regulatory probes, litigation and
bankruptcy proceedings.
The report, citing an article from Boston.com, says the closures
appear to have affected 10 Boston-area restaurants, including
locations in Watertown, Newbury Street in Boston, Hingham,
Lexington and Wellesley. The report says 140 employees are out of
work. Boston.com reported phones were unanswered at each of those
locations, save for the Watertown store at 94 Main St., where an
employee who spoke by phone said, "We are not open. Our company
is going through some changes so we are closed for at least next
couple of days," according to the Globe report.
Upper Crust Pizza LLC, the operator of upscale pizza restaurants
in Massachusetts, filed a Chapter 11 petition (Bankr. D. Mass.
Case No. 12-18134) on Oct. 9, 2012, in Boston on Oct. 4, 2012.
John C. Elstad, Esq., at Murphy & King, P.C., in Boston, serves
as counsel. The Debtor listed assets and liabilities of at least
$1 million.
VESTA CORP: Moody's Assigns 'B2' CFR/PDR; Outlook Stable
--------------------------------------------------------
Moody's Investors Service assigned the following first-time
ratings to the debt of Vesta Corporation: B2 corporate family and
probability of default ratings ("CFR" and "PDR", respectively),
Ba3 to the proposed $200 million first lien term loan, and B3 to
the proposed $95 million second lien term loan. The rating outlook
is stable.
RATINGS RATIONALE
Vesta's B2 corporate family rating (CFR) reflects the high
financial leverage of about 5 times adjusted debt EBITDA and small
scale relative to larger and financially stronger payment
processors. Vesta also has particulary high industry and customer
concentration from its mobile carrier customers. To achieve future
revenue growth and diversify its customer base, Moody's believes
Vesta will have to invest in new geographies, payment services,
and resources, and the associated capital requirements will likely
keep financial leverage high.
These risks are mitigated by Vesta's solid free cash flow (FCF),
which should result in a FCF to debt ratio of about 10%, and
limited churn as the company has not lost a customer. As well,
there is a generally favorable industry trend of a large and
growing prepaid wireless market (both in the U.S. and abroad),
which is one of the few growth areas for mobile carriers and
likely to benefit Vesta.
The stable outlook reflects Moody's expectation of at least high
single-digit revenue growth, operating margins over 30%, minimum
cash of $35 million, and debt to EBITDA (after Moody's standard
adjustments) below 5 times. Moody's further expects that Vesta
will renew its contract with its largest customer ahead of the
December 2013 expiration with substantially similar economic
terms.
The ratings could be upgraded if Vesta achieves meaningful revenue
growth in the mid-teens percentage, free cash flow to debt of 15%,
and adjusted debt to EBITDA near 3 times on a sustained basis.
Downward ratings pressure could arise if debt to EBITDA exceeds 6
times, liquidity deteriorates due to a decline in profitability or
cash flow, or financial policies become more aggressive (e.g.,
cash acquisitions without a proportionate increase in EBITDA, or
dividend payment to owners).
The following ratings were assigned:
Corporate Family Rating -- B2
Probability of Default Rating -- B2
$200 million 1st lien Term Loan -- Ba3 (LGD2 -- 24%)
$95 million 2nd lien Term Loan -- B3 (LGD5 -- 70%)
The rating outlook is stable.
The principal methodology used in rating Vesta Corporation was the
Global Business and Consumer Service Industry Rating Methodology,
published in October 2010. Other methodologies used include Loss
Given Default for Speculative-Grade Non-Financial Companies in the
U.S., Canada and EMEA published in June 2009.
Vesta Corporation, with projected annual revenues over $170
million, is a provider of electronic payment services, principally
for the prepaid mobile phone market.
VESTA CORP: S&P Assigns Preliminary 'B' Corp. Credit Rating
-----------------------------------------------------------
Standard & Poor's Ratings Services assigned its 'B' preliminary
corporate credit rating to Portland, Ore.-based Vesta Corp. The
outlook is stable.
"At the same time, we assigned a 'B+' preliminary issue-level
rating to the company's proposed $200 million first-lien senior
secured term loan due 2017. The '2' preliminary recovery rating
indicates our expectation of substantial recovery (70% to 90%) in
the event of payment default. We also assigned a 'CCC+'
preliminary issue-level rating to the company's proposed $95
million second-lien senior secured term loan due 2018. The '6'
preliminary recovery rating indicates our expectation of
negligible recovery (0% to 10%) in the event of payment default,"
S&P said.
The company intends to use the proceeds from the transaction to
make a tender offer that would redeem 70% of the company's common
and preferred equity shares.
"The preliminary ratings on Vesta reflect the company's
'vulnerable' business risk profile which derives from its narrow
market focus, concentrated customer base, and exposure to
potential pricing pressure on upcoming contract renewals," said
Standard & Poor's credit analyst Christian Frank. "The ratings
also reflect its 'aggressive' financial profile with pro forma
leverage of 5.1x. Nevertheless, we expect that good industry
trends, highly predictable revenue, and a recent new customer win
will allow it to deliver revenue growth in excess of 10% with
consistent EBITDA margins and positive free cash flow in 2013."
Vesta provides payment processing services to wireless carriers
that allow prepaid mobile subscribers to replenish their accounts
or "top-up" through branded call center, online, and mobile
channels, while the carriers continue to manage the retail
channel. "The company manages the virtual points of contact with
the consumer, collects and remits payments, and provides other
value-added services such as analytics and security. Its fraud and
risk management systems are a key capability that allows Vesta to
minimize fraud losses, while maximizing revenue by keeping
declined transactions low. Increased fraud losses are a risk since
the company indemnifies its customers for losses; however it has
been able to keep losses at a low and consistent level over the
past several years. The vast majority of the company's revenue
comes from the U.S. While the company has recently won some new
customers in Europe and Latin America, where prepaid is more
prevalent, we do not incorporate an expectation of material growth
from these regions into the rating due to the preponderance of
cash pay top-up options in these markets, which Vesta does not
service," S&P said.
"The stable outlook reflects our expectation that good industry
trends and predictable revenues will result in consistent
operating performance over the next 12 months. The possibility of
an upgrade is limited in the near term due to our view of the
company's business risk profile and three significant contracts up
for renewal in late 2013 and 2014," S&P said.
"We could lower the rating if pricing pressure or increased fraud
losses lead to reduced profitability, or if the company pursues
debt-financed acquisitions or shareholder returns, resulting in
leverage above 7x on a sustained basis or if there is a material
reduction in liquidity," S&P said.
VANITY EVENTS: Delays 3rd Quarter Form 10-Q Over Hurricane Sandy
----------------------------------------------------------------
Vanity Events Holding, Inc.'s quarterly report on Form 10-Q for
the three months ended Sept. 30, 2012, cannot be filed within the
prescribed time period because the Company's normal process for
compilation and review of its financial statements was delayed due
to the Company's outside accountant not being able to access the
Company's accounting records due to the effects of Hurricane
Sandy. The Company's Quarterly Report on Form 10-Q will be filed
on or before the 5th calendar day following the prescribed due
date.
About Vanity Events
Based in New York, Vanity Events Holding, Inc. (OTC BB: VAEV)
-- http://www.vanityeventsholding.com/-- is a holding company
with two primary subsidiary companies. The subsidiaries are
Vanity Events, Inc. and America's Cleaning Company. America's
Cleaning Company(TM) is the Company's flagship division which
provides cleaning services to residential and commercial clients.
Vanity Events, Inc. seeks out, Licenses, develops, promotes, and
brings to market various innovative consumer and commercial
products.
The Company reported net income of $330,705 in 2011 compared with
a net loss of $544,831 in 2010.
The Company's balance sheet at June 30, 2012, showed $3.29 million
in total assets, $17.97 million in total liabilities, all current,
and a $14.68 million total stockholders' deficit.
RBSM LLPk, in New York, issued a "going concern" qualification on
the consolidated financial statements for the year ended Dec. 31,
2011. The independent auditors noted that the Company has
suffered losses since inception and is experiencing difficulty in
generating sufficient cash flows to meet its obligations and
sustain its operations, which raises substantial doubt about its
ability to continue as a going concern.
Bankruptcy Warning
The Company said in its quarterly report on Form 10-Q for the
period ended June 30, 2012, that its ability to implement its
current business plan and continue as a going concern ultimately
is dependent upon the Company's ability to obtain additional
equity or debt financing, attain further operating efficiencies
and to achieve profitable operations.
"There can be no assurances that funds will be available to the
Company when needed or, if available, that such funds would be
available under favorable terms. In the event that the Company is
unable to generate adequate revenues to cover expenses and cannot
obtain additional funds in the near future, the Company may seek
protection under bankruptcy laws. To date, management has not
considered this alternative, nor does management view it as a
likely occurrence, since the Company is progressing with various
potential sources of new capital and we anticipate a successful
outcome from these activities. However, capital markets remain
difficult and there can be no certainty of a successful outcome
from these activities."
VERTICAL COMPUTER: Delays Form 10-Q for Third Quarter
-----------------------------------------------------
Vertical Computer Systems, Inc., has experienced unexpected delays
in coordinating and finalizing its quarterly report on Form 10-Q
for the period ended Sept. 30, 2012. Accordingly, the Company was
unable to file its Form 10-Q on or before the prescribed filing
date.
About Vertical Computer
Richardson, Tex.-based Vertical Computer Systems, Inc., is a
multinational provider of Internet core technologies, application
software, and software services through its distribution network
with operations or sales in the United States, Canada and Brazil.
In the auditors' report accompanying the consolidated financial
statements for the year ended Dec. 31, 2011, MaloneBailey, LLP, in
Houston, Texas, noted that the Company suffered net losses and has
a working capital deficiency, which raises substantial doubt about
its ability to continue as a going concern.
The Company reported a net loss of $167,588 in 2011, compared with
a net loss of $245,164 in 2010.
The Company's balance sheet at June 30, 2012, showed $1.20 million
in total assets, $13.19 million in total liabilities,
$9.90 million in convertible cumulative preferred stock, and a
$21.88 million total stockholders' deficit.
VIASPACE INC: Delays 3rd Quarter Form 10-Q for Recapitalization
---------------------------------------------------------------
VIASPACE Inc. was unable to file its quarterly report on Form 10-Q
for the period ended Sept. 30, 2012, in a timely manner because
the Company was not able to complete its financial statements
without unreasonable effort or expense due to the recapitalization
event between VIASPACE Inc. and VIASPACE Green Energy Inc. that
was effective Sept. 30, 2012.
About VIASPACE Inc.
Irvine, Calif.-based VIASPACE Inc. (OTC Bulletin Board: VSPC -
News) -- http://www.VIASPACE.com/-- is a clean energy company
providing products and technology for renewable and alternative
energy that reduce or eliminate dependence on fossil and high-
pollutant energy sources. Through its majority-owned subsidiary
VIASPACE Green Energy Inc., the Company grows Giant King Grass as
a low carbon fuel for electricity generating power plants and as a
feedstock for cellulosic biofuels.
Viaspace reported a net loss of $668,000 on $588,000 of total
revenues for the three months ended March 31, 2012. The Company
reported a net loss of $9.36 million in 2011, compared with a net
loss of $2.96 million in 2010.
The Company's balance sheet at March 31, 2012, showed
$9.82 million in total assets, $7.32 million in total liabilities
and $2.50 million in total equity.
Going Concern
The Company has incurred significant losses from operations,
resulting in an accumulated deficit of $43,650,000. The Company
expects those losses to continue. In addition, the Company has
limited working capital and based on current cash flows does not
have sufficient funds to pay the May 14, 2012, installment due on
the note to Changs LLC. These raises substantial doubt about the
Company's ability to continue as a going concern.
After auditing the financial results for the year ended Dec. 31,
2011, Hein & Associates LLP, in Irvine, Calif., expressed
substantial doubt about the Company's ability to continue as a
going concern. The independent auditors noted that he Company has
incurred significant losses from operations, resulting in an
accumulated deficit of $43.05 million. The Company expects those
losses to continue. In addition, the Company has limited working
capital and based on current cash flows does not have sufficient
funds to pay the May 2012 instalment due on the note to Changs
LLC.
W.R. GRACE: $2 Million Dairyland Settlement Approved
----------------------------------------------------
W.R. Grace & Co. and its debtor affiliates obtained approval from
the U.S. Bankruptcy Court for the District of Delaware of a
settlement agreement with Dairyland Insurance Company.
Dairyland issued a single policy of excess liability insurance
that provided, or is alleged to provide, insurance coverage to
Grace for expenses and losses arising out of asbestos-related
claims. The Subject Policy was issued for the policy period from
June 30, 1983, to June 30, 1984, and provides coverage in the
total amount of $2 million in the aggregate for products and
completed operations. The Subject Policy is part of a quota share
layer of $75 million, which attaches excess of $75 million in
underlying limits.
Grace has incurred -- and Grace and the Asbestos PI Trust may
incur in the future -- certain liabilities, expenses and losses
arising out of asbestos-related claims, for which Grace seeks
coverage under the Subject Policy. Disputes have arisen between
Grace and Dairyland regarding their rights and obligations under
the Subject Policy with respect to coverage for asbestos-related
claims.
The Plan of Reorganization contemplates that Asbestos Personal-
Injury Claims will be enjoined and channeled to the Trust. If
established as proposed, the Trust will process and resolve
Asbestos PI Claims pursuant to the Asbestos PI Trust Distribution
Procedures. The Plan further contemplates that Asbestos Insurance
Rights, including rights to coverage under the Subject Policy, are
to be transferred to the Trust on the Effective Date, to be used
to fund payment of Asbestos PI Claims.
Under the agreement, the parties agreed that Dairyland will pay
$2 million to the Trust within 30 days of the "trigger date" as
provided for in the agreement. The Agreement includes a complete,
mutual release of all claims under the Subject Policy and is
structured as a sale of property pursuant to Section 363 of the
Bankruptcy Code.
The Agreement further provides that if the Plan goes effective,
the Trust, at its own expense, will enforce the Asbestos PI
Channeling Injunction with respect to Asbestos PI Claims subject
to the Asbestos PI Channeling Injunction that are asserted against
Dairyland under the Subject Policy, provided, however, that the
Trust's obligation in this respect is limited to the Settlement
Amount.
About W.R. Grace
Headquartered in Columbia, Maryland, W.R. Grace & Co. (NYSE:GRA)
-- http://www.grace.com/-- supplies catalysts and silica
products, especially construction chemicals and building
materials, and container products globally.
The company and its debtor-affiliates filed for chapter 11
protection on April 2, 2001 (Bankr. D. Del. Case No. 01-01139).
David M. Bernick, P.C., Esq., at Kirkland & Ellis, LLP, and Laura
Davis Jones, Esq., at Pachulski Stang Ziehl & Jones, LLP,
represent the Debtors in their restructuring efforts. The Debtors
hired Blackstone Group, L.P., for financial advice.
PricewaterhouseCoopers LLP is the Debtors' accountant.
Stroock & Stroock & Lavan, LLP, and Duane Morris, LLP, represent
the Official Committee of Unsecured Creditors. The Creditors
Committee tapped Capstone Corporate Recovery LLC for financial
advice. David T. Austern, the legal representative of future
asbestos personal injury claimants, is represented by Orrick
Herrington & Sutcliffe LLP and Phillips Goldman & Spence, PA.
Elihu Inselbuch, Esq., at Caplin & Drysdale, Chartered, and Marla
R. Eskin, Esq., at Campbell & Levine, LLC, represent the Official
Committee of Asbestos Personal Injury Claimants. The Asbestos
Committee of Property Damage Claimants tapped Scott Baena, Esq.,
and Jay M. Sakalo, Esq., at Bilzin Sumberg Baena Price & Axelrod,
LLP, to represent it. Thomas Moers Mayer, Esq., at Kramer Levin
Naftalis & Frankel, LLP, represents the Official Committee of
Equity Security Holders.
W.R. Grace obtained confirmation of a plan co-proposed with the
Official Committee of Asbestos Personal Injury Claimants, the
Official Committee of Equity Security Holders, and the Asbestos
Future Claimants Representative. The Chapter 11 plan is built
around an April 2008 settlement for all present and future
asbestos personal injury claims, and a subsequent settlement for
asbestos property damage claims. Implementation of the Plan has
been held up by appeals in District Court from various parties,
including a group of prepetition bank lenders and the Official
Committee of Unsecured Creditors.
District Judge Ronald Buckwalter on Jan. 31, 2012, entered an
order affirming the bankruptcy court's confirmation of W.R. Grace
& Co. and its debtor affiliates' Plan of Reorganization.
Bankruptcy Judge Judith Fitzgerald had approved the Plan on
Jan. 31, 2011.
On April 20, 2012, the company filed a motion with the Bankruptcy
Court to approve definitive agreements among itself, co-proponents
of the Plan, BNSF railroad, several insurance companies and the
representatives of Libby asbestos personal injury claimants, to
settle objections to the Plan. Pursuant to the agreements, the
Libby claimants and BNSF would forego any further appeals to the
Plan.
Bankruptcy Creditors' Service, Inc., publishes W.R. Grace
Bankruptcy News. The newsletter tracks the Chapter 11 proceeding
undertaken by W.R. Grace, W.R. Grace Co. - Conn. and their
affiliates. (http://bankrupt.com/newsstand/or 215/945-7000)
W.R. GRACE: SC&H Expense Cap Increased to $2.0 Million
------------------------------------------------------
W.R. Grace & Co. and its affiliates obtained an order from the
bankruptcy judge amending the order approving employment of
ordinary course professionals to increase the Total
Expenditure Cap to $2.0 million for SC&H State & Local Tax.
The Debtors also sought and obtained authority, in the event that
SC&H's expenditures exceed the $2.0 million Total Expenditure Cap
prior to the Plan of Reorganization's Effective Date, to raise the
cap by up to an additional $400,000 upon 10 days' written notice
to the U.S. Trustee and counsel for the statutory committees and
future claims representatives.
SC&H provides W.R. Grace with a wide range of tax consulting
services, including:
* Conducting "reverse audits" of real property, personal
property, sales and use taxes paid to several of the states
in which Grace does business. These audits have resulted in
the Debtors recovering significant tax refunds over the past
several years;
* Annually preparing and filing approximately 85 personal
property tax returns in 20 states; and
* Analyzing and advising the Debtors regarding the tax aspects
of real estate projects and negotiations and special
projects and proposed business transactions and ventures.
According to Adam Paul, Esq., at Kirkland & Ellis LLP, in Chicago,
SCH&H is nearing the current Total Expenditure Cap, although their
monthly fees and expenses each remain well below the $50,000
monthly cap. SC&H billed Grace approximately $292,250 over the
four quarters ending on Sept. 30, 2012. As of that date, SC&H's
total expenditure since the Petition Date was approximately
$1,499,614. At an average of approximately $73,800 per month, the
Debtors expect SC&H to exceed the Total Expenditure Cap in the
first quarter of 2013, Mr. Paul tells the Court. By raising the
cap to $2.0 million, at the present rate of expenditure, the
Debtors do not expect that SC&H will approach the new cap until
well into 2014, he adds.
Mr. Paul says the Total Expenditure Cap for all other
professionals will remain at $1.6 million as set forth in the OCP
Order dated Nov. 11, 2011, and that order will remain otherwise
unaffected in all respects.
About W.R. Grace
Headquartered in Columbia, Maryland, W.R. Grace & Co. (NYSE:GRA)
-- http://www.grace.com/-- supplies catalysts and silica
products, especially construction chemicals and building
materials, and container products globally.
The company and its debtor-affiliates filed for chapter 11
protection on April 2, 2001 (Bankr. D. Del. Case No. 01-01139).
David M. Bernick, P.C., Esq., at Kirkland & Ellis, LLP, and Laura
Davis Jones, Esq., at Pachulski Stang Ziehl & Jones, LLP,
represent the Debtors in their restructuring efforts. The Debtors
hired Blackstone Group, L.P., for financial advice.
PricewaterhouseCoopers LLP is the Debtors' accountant.
Stroock & Stroock & Lavan, LLP, and Duane Morris, LLP, represent
the Official Committee of Unsecured Creditors. The Creditors
Committee tapped Capstone Corporate Recovery LLC for financial
advice. David T. Austern, the legal representative of future
asbestos personal injury claimants, is represented by Orrick
Herrington & Sutcliffe LLP and Phillips Goldman & Spence, PA.
Elihu Inselbuch, Esq., at Caplin & Drysdale, Chartered, and Marla
R. Eskin, Esq., at Campbell & Levine, LLC, represent the Official
Committee of Asbestos Personal Injury Claimants. The Asbestos
Committee of Property Damage Claimants tapped Scott Baena, Esq.,
and Jay M. Sakalo, Esq., at Bilzin Sumberg Baena Price & Axelrod,
LLP, to represent it. Thomas Moers Mayer, Esq., at Kramer Levin
Naftalis & Frankel, LLP, represents the Official Committee of
Equity Security Holders.
W.R. Grace obtained confirmation of a plan co-proposed with the
Official Committee of Asbestos Personal Injury Claimants, the
Official Committee of Equity Security Holders, and the Asbestos
Future Claimants Representative. The Chapter 11 plan is built
around an April 2008 settlement for all present and future
asbestos personal injury claims, and a subsequent settlement for
asbestos property damage claims. Implementation of the Plan has
been held up by appeals in District Court from various parties,
including a group of prepetition bank lenders and the Official
Committee of Unsecured Creditors.
District Judge Ronald Buckwalter on Jan. 31, 2012, entered an
order affirming the bankruptcy court's confirmation of W.R. Grace
& Co. and its debtor affiliates' Plan of Reorganization.
Bankruptcy Judge Judith Fitzgerald had approved the Plan on
Jan. 31, 2011.
On April 20, 2012, the company filed a motion with the Bankruptcy
Court to approve definitive agreements among itself, co-proponents
of the Plan, BNSF railroad, several insurance companies and the
representatives of Libby asbestos personal injury claimants, to
settle objections to the Plan. Pursuant to the agreements, the
Libby claimants and BNSF would forego any further appeals to the
Plan.
Bankruptcy Creditors' Service, Inc., publishes W.R. Grace
Bankruptcy News. The newsletter tracks the Chapter 11 proceeding
undertaken by W.R. Grace, W.R. Grace Co. - Conn. and their
affiliates. (http://bankrupt.com/newsstand/or 215/945-7000)
W.R. GRACE: Wins OK to Expand Scope of Baker Employment
-------------------------------------------------------
W.R. Grace & Co. and its affiliates seek the Bankruptcy Court's
authority to modify and expand the scope of services provided by
Baker, Donelson, Bearman, Caldwell & Berkowitz, P.C., and increase
the monthly fees paid to the firm from $20,000 to $30,000, nunc
pro tunc to May 1, 2012.
According to the Debtors, Baker Donelson's services with respect
to the Debtors' legislative affairs and current pending and
future legislative affairs have continued and expanded, as to the
projects for which they were retained pursuant to specific
requests of the Debtors. As a result, Baker Donelson has needed
to increase its staffing for the services to include the special
consulting services of William M. Corcoran. The fee increase
reflects, in most part, fees paid by the firm to its retained
special consultant.
About W.R. Grace
Headquartered in Columbia, Maryland, W.R. Grace & Co. (NYSE:GRA)
-- http://www.grace.com/-- supplies catalysts and silica
products, especially construction chemicals and building
materials, and container products globally.
The company and its debtor-affiliates filed for chapter 11
protection on April 2, 2001 (Bankr. D. Del. Case No. 01-01139).
David M. Bernick, P.C., Esq., at Kirkland & Ellis, LLP, and Laura
Davis Jones, Esq., at Pachulski Stang Ziehl & Jones, LLP,
represent the Debtors in their restructuring efforts. The Debtors
hired Blackstone Group, L.P., for financial advice.
PricewaterhouseCoopers LLP is the Debtors' accountant.
Stroock & Stroock & Lavan, LLP, and Duane Morris, LLP, represent
the Official Committee of Unsecured Creditors. The Creditors
Committee tapped Capstone Corporate Recovery LLC for financial
advice. David T. Austern, the legal representative of future
asbestos personal injury claimants, is represented by Orrick
Herrington & Sutcliffe LLP and Phillips Goldman & Spence, PA.
Elihu Inselbuch, Esq., at Caplin & Drysdale, Chartered, and Marla
R. Eskin, Esq., at Campbell & Levine, LLC, represent the Official
Committee of Asbestos Personal Injury Claimants. The Asbestos
Committee of Property Damage Claimants tapped Scott Baena, Esq.,
and Jay M. Sakalo, Esq., at Bilzin Sumberg Baena Price & Axelrod,
LLP, to represent it. Thomas Moers Mayer, Esq., at Kramer Levin
Naftalis & Frankel, LLP, represents the Official Committee of
Equity Security Holders.
W.R. Grace obtained confirmation of a plan co-proposed with the
Official Committee of Asbestos Personal Injury Claimants, the
Official Committee of Equity Security Holders, and the Asbestos
Future Claimants Representative. The Chapter 11 plan is built
around an April 2008 settlement for all present and future
asbestos personal injury claims, and a subsequent settlement for
asbestos property damage claims. Implementation of the Plan has
been held up by appeals in District Court from various parties,
including a group of prepetition bank lenders and the Official
Committee of Unsecured Creditors.
District Judge Ronald Buckwalter on Jan. 31, 2012, entered an
order affirming the bankruptcy court's confirmation of W.R. Grace
& Co. and its debtor affiliates' Plan of Reorganization.
Bankruptcy Judge Judith Fitzgerald had approved the Plan on
Jan. 31, 2011.
On April 20, 2012, the company filed a motion with the Bankruptcy
Court to approve definitive agreements among itself, co-proponents
of the Plan, BNSF railroad, several insurance companies and the
representatives of Libby asbestos personal injury claimants, to
settle objections to the Plan. Pursuant to the agreements, the
Libby claimants and BNSF would forego any further appeals to the
Plan.
Bankruptcy Creditors' Service, Inc., publishes W.R. Grace
Bankruptcy News. The newsletter tracks the Chapter 11 proceeding
undertaken by W.R. Grace, W.R. Grace Co. - Conn. and their
affiliates. (http://bankrupt.com/newsstand/or 215/945-7000)
W.R. GRACE: Former Solutia Chief Jeff Quinn Joins Board
-------------------------------------------------------
W.R. Grace & Co. (NYSE: GRA) announced the election of Jeffry N.
Quinn to its Board of Directors. Mr. Quinn's election increases
the size of the Board to nine directors.
Mr. Quinn, 53, is Chairman and Chief Executive Officer of The
Quinn Group LLC, a diversified holding company with investments in
the industrial, active lifestyle, and entertainment sectors, and
Quinpario Partners LLC, an investment and operating firm in the
performance materials and specialty chemical sectors. Prior to
forming The Quinn Group and Quinpario in July 2012, Mr. Quinn
served as President and Chief Executive Officer of Solutia Inc., a
global leader in specialty chemicals, since 2004 and also served
as Chairman of the Board of Solutia since 2006. He held those
positions until the sale of Solutia in July 2012 to Eastman
Chemical Company. Prior to that, Quinn served as Chief
Restructuring Officer, Senior Vice President and General Counsel
at Solutia, Executive Vice President of Premcor, Inc. and Senior
Vice President, General Counsel and Secretary of Arch Coal Inc. He
holds both a Juris Doctor and a mining engineering degree from the
University of Kentucky, and serves on the board of directors of
Tronox Limited, one of the world's largest fully integrated
producers of titanium ore and titanium dioxide, and MEMC
Electronic Materials, Inc., a global leader in semiconductor and
solar technology.
"With his deep knowledge and experience in the chemicals and
materials businesses, Jeff is a perfect fit for our Board," said
Fred Festa, Grace's Chairman and CEO. "We look forward to his
contributions and guidance as we look to execute on our long-term
strategic plans."
About W.R. Grace
Headquartered in Columbia, Maryland, W.R. Grace & Co. (NYSE:GRA)
-- http://www.grace.com/-- supplies catalysts and silica
products, especially construction chemicals and building
materials, and container products globally.
The company and its debtor-affiliates filed for chapter 11
protection on April 2, 2001 (Bankr. D. Del. Case No. 01-01139).
David M. Bernick, P.C., Esq., at Kirkland & Ellis, LLP, and Laura
Davis Jones, Esq., at Pachulski Stang Ziehl & Jones, LLP,
represent the Debtors in their restructuring efforts. The Debtors
hired Blackstone Group, L.P., for financial advice.
PricewaterhouseCoopers LLP is the Debtors' accountant.
Stroock & Stroock & Lavan, LLP, and Duane Morris, LLP, represent
the Official Committee of Unsecured Creditors. The Creditors
Committee tapped Capstone Corporate Recovery LLC for financial
advice. David T. Austern, the legal representative of future
asbestos personal injury claimants, is represented by Orrick
Herrington & Sutcliffe LLP and Phillips Goldman & Spence, PA.
Elihu Inselbuch, Esq., at Caplin & Drysdale, Chartered, and Marla
R. Eskin, Esq., at Campbell & Levine, LLC, represent the Official
Committee of Asbestos Personal Injury Claimants. The Asbestos
Committee of Property Damage Claimants tapped Scott Baena, Esq.,
and Jay M. Sakalo, Esq., at Bilzin Sumberg Baena Price & Axelrod,
LLP, to represent it. Thomas Moers Mayer, Esq., at Kramer Levin
Naftalis & Frankel, LLP, represents the Official Committee of
Equity Security Holders.
W.R. Grace obtained confirmation of a plan co-proposed with the
Official Committee of Asbestos Personal Injury Claimants, the
Official Committee of Equity Security Holders, and the Asbestos
Future Claimants Representative. The Chapter 11 plan is built
around an April 2008 settlement for all present and future
asbestos personal injury claims, and a subsequent settlement for
asbestos property damage claims. Implementation of the Plan has
been held up by appeals in District Court from various parties,
including a group of prepetition bank lenders and the Official
Committee of Unsecured Creditors.
District Judge Ronald Buckwalter on Jan. 31, 2012, entered an
order affirming the bankruptcy court's confirmation of W.R. Grace
& Co. and its debtor affiliates' Plan of Reorganization.
Bankruptcy Judge Judith Fitzgerald had approved the Plan on
Jan. 31, 2011.
On April 20, 2012, the company filed a motion with the Bankruptcy
Court to approve definitive agreements among itself, co-proponents
of the Plan, BNSF railroad, several insurance companies and the
representatives of Libby asbestos personal injury claimants, to
settle objections to the Plan. Pursuant to the agreements, the
Libby claimants and BNSF would forego any further appeals to the
Plan.
Bankruptcy Creditors' Service, Inc., publishes W.R. Grace
Bankruptcy News. The newsletter tracks the Chapter 11 proceeding
undertaken by W.R. Grace, W.R. Grace Co. - Conn. and their
affiliates. (http://bankrupt.com/newsstand/or 215/945-7000)
WASHINGTON HOSPITALITY: Case Summary & 4 Unsecured Creditors
------------------------------------------------------------
Debtor: Washington Hospitality, LLC
dba Ramada Inn
3702 Inverness Way
Augusta, GA 30907
Bankruptcy Case No.: 12-12116
Chapter 11 Petition Date: November 16, 2012
Court: United States Bankruptcy Court
Southern District of Georgia (Augusta)
Debtor's Counsel: James C. Overstreet, Jr., Esq.
KLOSINSKI OVERSTREET, LLP
#7 George C. Wilson Ct.
Augusta, GA 30909
Tel: (706) 863-2255
Fax: (706) 863-5885
E-mail: jco@klosinski.com
Scheduled Assets: $3,184,700
Scheduled Liabilities: $3,435,000
A copy of the Company's list of its four unsecured creditors filed
together with the petition is available for free at
http://bankrupt.com/misc/gasb12-12116.pdf
The petition was signed by Jugal Purohit, manager.
Affiliate that filed separate Chapter 11 petition:
Petition
Debtor Case No. Date
------ -------- ----
Madison Hotels 12-11637 09/12/12
YOUGO LLC: Voluntary Chapter 11 Case Summary
--------------------------------------------
Debtor: YOUGO, LLC
c/o 5024 E. Lafayette Blvd.
Phoenix, AZ 85018
Bankruptcy Case No.: 12-24939
Chapter 11 Petition Date: November 16, 2012
Court: United States Bankruptcy Court
District of Arizona (Phoenix)
Judge: Redfield T. Baum Sr.
Debtor's Counsel: Bradley Jay Stevens, Esq.
JENNINGS, STROUSS & SALMON, PLC
One E Washington St #1900
Phoenix, AZ 85004-2554
Tel: (602) 262-5955
Fax: (602) 495-2729
E-mail: bstevens@jsslaw.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 Hugo Paulson, manager.
* Georgia Bank Failure Brings Year's Total to 50
------------------------------------------------
Hometown Community Bank from Braselton, Georgia, was taken over by
regulators on Nov. 16, becoming the 50th U.S. bank to fail this
year. The two branches were turned over to Certus Bank NA from
South Carolina. Hometown had $124.6 million in assets and
$108.9 million in deposits. The failure will cost the Federal
Deposit Insurance Corp. $36.7 million.
2012 Failed Banks List
The FDIC was appointed as receiver for the closed banks. To
protect the depositors, the FDIC entered into a purchase and
assumption agreement with various banks that agreed to assume the
deposits of most of the closed banks. The FDIC also entered into
loss-share transactions on assets bought by the banks.
For this year, the failed banks are:
Loss-Share
Transaction Party FDIC Cost
Assets of Bank That Assumed to Insurance
Closed Bank Deposits & Bought Fund
Closed Bank (millions) Certain Assets (millions)
----------- ----------- ----------------- ------------
Hometown Community $124.6 CertusBank, N.A. $36.7
Citizens First $924.0 Heartland Bank and Trust $45.2
Heritage Bank of Fla. $225.5 Centennial Bank $65.5
NOVA Bank $483.0 No Acquirer $91.2
Excel Bank $200.6 Simmons First National $187.4
First East Side $67.2 Stearns Bank N.A. $9.1
GulfSouth Private $159.1 SmartBank $36.1
First United Bank $328.4 Old Plank Trail $48.6
Truman Bank $282.3 Simmons First National $34.0
First Commercial Bank $215.9 Republic Bank & Trust $63.9
Waukegan Savings Bank $88.9 First Midwest Bank $19.8
Jasper Banking Company $216.7 Stearns Bank, N.A. $58.1
Second Federal Savings $199.1 Hinsdale Bank & Trust $76.9
Heartland Bank $110.0 Metcalf Bank $3.1
Georgia Trust Bank $119.8 Community & Southern $20.9
The Royal Palm Bank $87.0 First National Bank $13.5
First Cherokee State $222.7 Community & Southern $36.9
Glasgow Savings Bank $24.8 Regional Missouri $0.1
Montgomery Bank & Trust $173.6 Ameris Bank $75.2
The Farmers Bank $163.9 Clayton Bank and Trust $28.3
Security Exchange Bank $151.0 Fidelity Bank $34.3
Putnam State Bank $169.5 Harbor Community Bank $37.4
Waccamaw Bank $533.1 First Community Bank $51.1
Farmers' and Traders' $43.1 First State Bank $8.9
First Capital Bank $46.1 F & M Bank $5.6
Carolina Federal $54.4 Bank of North Carolina $15.2
Alabama Trust Bank $51.6 Southern States Bank $8.9
Security Bank, N.A. $101.0 Banesco USA $10.8
Plantation Federal $486.4 First Federal Bank $76.0
Inter Savings Bank $473.0 Great Southern Bank $117.5
Bank of the Est. Shore $166.7 [No Acquirer] $41.8
Palm Desert Nat'l $125.8 Pacific Premier Bank $20.1
HarVest Bank of Md. $164.3 Sonabank $17.2
Fort Lee Federal $51.9 Alma Bank $14.0
Fidelity Bank $818.2 The Huntington Nat'l $92.8
Premier Bank $268.7 Int'l Bank of Chi. $64.1
Covenant Bank $95.7 Stearns Bank, N.A. $31.5
New City Bank $71.2 [No Acquirer] $17.4
Global Commerce Bank $143.7 Metro City Bank $17.9
Central Bank of Georgia $278.9 Ameris Bank $67.5
Home Savings of Amer. $434.1 [No Acquirer] $38.8
Charter National Bank $93.9 Barrington Bank $17.4
SCB Bank $182.6 First Merchants Bank $33.9
Patriot Bank $111.3 First Resource Bank $32.6
BankEast $272.6 U.S. Bank N.A. $75.6
Tennessee Commerce $1,185.0 Republic Bank & Trust $416.8
First Guaranty Bank $377.9 CenterState Bank $82.0
American Eagle $19.6 Capital Bank, N.A. $3.2
The First State Bank $416.8 Hamilton State Bank $416.8
Central Florida $79.1 CenterState Bank $24.4
In 2011 there were 92 failed banks, compared with 157 in 2010, 140
in 2009 and just 25 for 2008.
The failures in 2010 were the most since 1992, when 179
institutions were taken over by regulators.
A complete list of banks that failed since 2000 is available at:
http://www.fdic.gov/bank/individual/failed/banklist.html
813 Banks in Problem List
The FDIC's Quarterly Banking Profile for Dec. 31, 2011, says that
The number of institutions on the FDIC's "Problem List" declined
from 844 to 813 during the quarter, and total assets of "problem"
institutions fell from $339 billion to $319.4 billion. The number
of institutions in the "problem list" has decreased for the third
consecutive quarter.
The FDIC defines "problem" institutions as those with financial,
operational or managerial weaknesses that threaten their
viability.
The deposit insurance fund, which protects customer holdings up to
$250,000 per account in the event of a failure, saw its balance
increase in the fourth quarter to $9.2 billion (unaudited) from
$7.8 billion in the third quarter, the eighth consecutive
quarterly increase.
Problem Institutions Failed Institutions
-------------------- -------------------
Year Number Assets (Mil) Number Assets (Mil)
---- ------ ------------ ------ ------------
2011 813 $319,432 92 $34,923
2010 884 $390,017 157 $92,085
2009 702 $402,800 140 $169,700
2008 252 $159,405 25 $371,945
2007 76 $22,189 3 $2,615
2006 50 $8,265 0 $0
2005 52 $6,607 0 $0
2004 80 $28,250 4 $170
Federal regulators assign a composite rating to each financial
institution, based upon an evaluation of financial and operational
criteria. The rating is based on a scale of 1 to 5 in ascending
order of supervisory concern. "Problem" institutions are those
institutions with financial, operational, or managerial weaknesses
that threaten their continued financial viability. Depending upon
the degree of risk and supervisory concern, they are rated either
a "4" or "5." The number and assets of "problem" institutions are
based on FDIC composite ratings. Prior to March 31, 2008, for
institutions whose primary federal regulator was the OTS, the OTS
composite rating was used.
* Large Companies With Insolvent Balance Sheets
-----------------------------------------------
Total
Share- Total
Total Holders' Working
Assets Equity Capital
Company Ticker ($MM) ($MM) ($MM)
------- ------ ------ -------- -------
ABSOLUTE SOFTWRE ABT CN 128.8 (7.2) 2.7
ADVANCED BIOMEDI ABMT US 0.2 (2.0) (1.6)
AK STEEL HLDG AKS US 3,920.7 (413.9) 450.0
AMC NETWORKS-A AMCX US 2,152.9 (915.4) 505.9
AMER AXLE & MFG AXL US 2,674.2 (497.7) 372.3
AMER RESTAUR-LP ICTPU US 33.5 (4.0) (6.2)
AMERISTAR CASINO ASCA US 2,096.6 (25.6) (26.5)
AMYLIN PHARMACEU AMLN US 1,998.7 (42.4) 263.0
ANACOR PHARMACEU ANAC US 42.8 (6.2) 15.9
ARRAY BIOPHARMA ARRY US 85.5 (96.4) 4.1
ATLATSA RESOURCE ATL SJ 886.5 (270.4) 21.8
AUTOZONE INC AZO US 6,265.6 (1,548.0) (676.6)
BERRY PLASTICS G BERY US 5,114.0 (472.0) 552.0
BOSTON PIZZA R-U BPF-U CN 162.9 (92.3) (0.3)
CABLEVISION SY-A CVC US 7,285.3 (5,730.1) (85.3)
CAPMARK FINANCIA CPMK US 20,085.1 (933.1) -
CC MEDIA-A CCMO US 16,402.3 (7,847.3) 1,449.3
CENTENNIAL COMM CYCL US 1,480.9 (925.9) (52.1)
CHENIERE ENERGY CQP US 1,873.0 (442.2) 117.0
CHOICE HOTELS CHH US 483.1 (569.4) 7.5
CIENA CORP CIEN US 1,915.3 (60.3) 710.4
CINCINNATI BELL CBB US 2,752.3 (684.6) (68.2)
CLOROX CO CLX US 4,747.0 (20.0) 20.0
COMVERSE INC CNSI US 830.6 (80.6) (105.9)
CYTORI THERAPEUT CYTX US 32.0 (9.7) 8.2
DELTA AIR LI DAL US 44,352.0 (48.0) (5,061.0)
DIRECTV DTV US 20,353.0 (4,735.0) 953.0
DOMINO'S PIZZA DPZ US 441.0 (1,345.5) 74.0
DUN & BRADSTREET DNB US 1,821.6 (765.7) (615.8)
FAIRPOINT COMMUN FRP US 1,798.0 (220.7) 31.1
FERRELLGAS-LP FGP US 1,397.3 (27.5) (50.9)
FIESTA RESTAURAN FRGI US 289.7 6.6 (13.1)
FIFTH & PACIFIC FNP US 843.4 (192.2) 33.5
FREESCALE SEMICO FSL US 3,329.0 (4,489.0) 1,305.0
GENCORP INC GY US 908.1 (164.3) 48.1
GLG PARTNERS INC GLG US 400.0 (285.6) 156.9
GLG PARTNERS-UTS GLG/U US 400.0 (285.6) 156.9
GOLD RESERVE INC GRZ CN 78.3 (25.8) 56.9
GRAHAM PACKAGING GRM US 2,947.5 (520.8) 298.5
HCA HOLDINGS INC HCA US 27,302.0 (6,563.0) 1,411.0
HEADWATERS INC HW US 680.9 (3.1) 73.5
HOVNANIAN ENT-A HOV US 1,624.8 (404.2) 881.0
HUGHES TELEMATIC HUTC US 110.2 (101.6) (113.8)
HUGHES TELEMATIC HUTCU US 110.2 (101.6) (113.8)
INCYTE CORP INCY US 296.5 (220.0) 141.1
INFOR US INC LWSN US 5,846.1 (480.0) (306.6)
INTERCEPT PHARMA ICPT US 12.1 (9.4) 6.1
IPCS INC IPCS US 559.2 (33.0) 72.1
ISTA PHARMACEUTI ISTA US 124.7 (64.8) 2.2
JUST ENERGY GROU JE US 1,536.5 (279.0) (177.1)
JUST ENERGY GROU JE CN 1,536.5 (279.0) (177.1)
LIMITED BRANDS LTD US 6,589.0 (245.0) 1,316.0
LIN TV CORP-CL A TVL US 864.4 (35.0) 67.2
LORILLARD INC LO US 3,424.0 (1,564.0) 1,364.0
MARRIOTT INTL-A MAR US 5,865.0 (1,296.0) (1,532.0)
MERITOR INC MTOR US 2,501.0 (982.0) 270.0
MONEYGRAM INTERN MGI US 5,247.0 (163.6) (95.3)
MORGANS HOTEL GR MHGC US 577.0 (125.2) (1.1)
NATIONAL CINEMED NCMI US 788.5 (347.4) 102.6
NAVISTAR INTL NAV US 11,143.0 (358.0) 1,585.0
NEXSTAR BROADC-A NXST US 566.3 (170.6) 40.2
NPS PHARM INC NPSP US 165.5 (46.7) 121.9
NYMOX PHARMACEUT NYMX US 2.7 (7.7) (0.9)
OMEROS CORP OMER US 10.1 (20.5) (8.7)
PALM INC PALM US 1,007.2 (6.2) 141.7
PDL BIOPHARMA IN PDLI US 249.9 (115.5) 170.6
PLAYBOY ENTERP-A PLA/A US 165.8 (54.4) (16.9)
PLAYBOY ENTERP-B PLA US 165.8 (54.4) (16.9)
PRIMEDIA INC PRM US 208.0 (91.7) 3.6
PROTECTION ONE PONE US 562.9 (61.8) (7.6)
REALOGY HOLDINGS RLGY US 7,351.0 (1,742.0) (484.0)
REGAL ENTERTAI-A RGC US 2,198.1 (552.4) 77.4
RENAISSANCE LEA RLRN US 57.0 (28.2) (31.4)
REVLON INC-A REV US 1,183.6 (680.7) 104.7
RURAL/METRO CORP RURL US 303.7 (92.1) 72.4
SALLY BEAUTY HOL SBH US 1,813.5 (202.0) 449.5
SAREPTA THERAPEU SRPT US 53.1 (4.6) (13.0)
SHUTTERSTOCK INC SSTK US 30.2 (29.6) (33.4)
SINCLAIR BROAD-A SBGI US 2,245.5 (52.4) (14.1)
TAUBMAN CENTERS TCO US 3,152.7 (86.1) -
TEMPUR-PEDIC INT TPX US 913.5 (12.5) 207.0
TESLA MOTORS TSLA US 809.2 (27.9) (101.3)
TESORO LOGISTICS TLLP US 291.3 (78.5) 50.7
THRESHOLD PHARMA THLD US 86.2 (44.1) 68.2
TRULIA INC TRLA US 27.6 (3.2) (4.9)
ULTRA PETROLEUM UPL US 2,593.6 (109.6) (266.6)
UNISYS CORP UIS US 2,254.5 (1,152.6) 371.3
VECTOR GROUP LTD VGR US 885.6 (102.9) 243.0
VERISIGN INC VRSN US 1,983.3 (26.6) (86.9)
VIRGIN MOBILE-A VM US 307.4 (244.2) (138.3)
VRINGO INC VRNG US 3.7 (1.4) 2.1
WEIGHT WATCHERS WTW US 1,198.0 (1,720.4) (273.7)
WORKDAY INC-A WDAY US 267.2 (46.4) 14.3
XHIBIT CORP XBTC US 2.4 (0.0) (0.5)
*********
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, Carmel
Paderog, Meriam Fernandez, 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.
This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding, electronic
re-mailing and photocopying) is strictly prohibited without prior
written permission of the publishers. Information contained
herein is obtained from sources believed to be reliable, but is
not guaranteed.
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are $25 each. For subscription information, contact Christopher
Beard at 240/629-3300.
*** End of Transmission ***