/raid1/www/Hosts/bankrupt/TCR_Public/130126.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
Saturday, January 26, 2013, Vol. 17, No. 25
Headlines
4KIDS ENTERTAINMENT: Has $10.48 Million Cash at Nov. 30
A123 SYSTEMS: Ends November With $62.03 Million in Cash
AMERICAN SUZUKI: Lists $78.85 Million Net Loss in November
AMERICANWEST BANCORP: Lists $8,413 Net Loss in December
ARCAPITA BANK: Reports $21.71 Million Net Loss in December
ARCHDIOCESE OF MILWAUKEE: Has $6.80 Million Cash at Dec. 31
BEAR ISLAND: Ends November With $9.31 Million in Cash
DEWEY & LEBOEUF: Reports $209.86-Mil. Total Liabilities at Dec. 31
HOSTESS BRANDS: Has $35.30 Million Cash at Dec. 15
K-V PHARMACEUTICAL: Ends December With $34.88 Million in Cash
LIGHTSQUARED INC: Reports $121 Million Net Loss in December
RITZ CAMERA: Ends November With $224,239 in Cash
*********
4KIDS ENTERTAINMENT: Has $10.48 Million Cash at Nov. 30
-------------------------------------------------------
4Kids Entertainment Licensing, Inc., on Dec. 13, 2012, filed its
monthly operating report for the month ended Nov. 30, 2012.
At the beginning of the month, the Company had $10.7 million in
cash. The Company had total cash receipts of $561,908 and total
cash disbursements of $782,684. As a result, at the end of
November, 4Kids Entertainment had total cash of $10.48 million.
About 4Kids Entertainment
New York-based 4Kids Entertainment, Inc., dba 4Kids, is an
entertainment and media company specializing in the youth oriented
market, with operations in these business segments: (i) licensing,
(ii) advertising and media broadcast, and (iii) television and
film production/distribution. The parent entity, 4Kids
Entertainment, was organized as a New York corporation in 1970.
4Kids filed for bankruptcy protection under Chapter 11 of the
Bankruptcy Code to protect its most valuable asset -- its rights
under an exclusive license relating to the popular Yu-Gi-Oh!
series of animated television programs -- from efforts by the
licensor, a consortium of Japanese companies, to terminate
the license and force 4Kids out of business.
4Kids and affiliates filed Chapter 11 petitions (Bankr. S.D.N.Y.
Lead Case No. 11-11607) on April 6, 2011. Kaye Scholer LLP is the
Debtors' restructuring counsel. Epiq Bankruptcy Solutions, LLC,
is the Debtors' claims and notice agent. BDO Capital Advisors,
LLC, is the financial advisor and investment banker. EisnerAmper
LLP fka Eisner LLP serves as auditor and tax advisor. 4Kids
Entertainment disclosed $78,397,971 in assets and $86,515,395 in
liabilities as of the Chapter 11 filing.
Hahn & Hessen LLP serves as counsel to the Official Committee of
Unsecured Creditors. Epiq Bankruptcy Solutions LLC serves as its
information agent for the Committee.
The Consortium consists of TV Tokyo Corporation, which owns and
operates a television station in Japan; ASATSU-DK Inc., a Japanese
advertising company; and Nihon Ad Systems, ADK's wholly owned
subsidiary. The Consortium is represented by Kyle C. Bisceglie,
Esq., Michael S. Fox, Esq., Ellen V. Holloman, Esq., and Mason
Barney, Esq., at Olshan Grundman Frome Rosenzweig & Wolosky LLP,
in New York.
In January 2012, the bankruptcy judge ruled in favor of 4Kids,
deciding that the Yu-Gi-Oh! property license agreement between the
Debtor and the licensor was not effectively terminated prior to
the bankruptcy filing. Following the ruling, 4Kids entered into a
settlement where it would receive $8 million to end the dispute
over its valuable Yu-Gi-Oh! Property.
As reported by the TCR on Dec. 17, 2012, U.S. Bankruptcy
Judge Shelley C. Chapman confirmed the Debtor's Chapter 11 plan.
A123 SYSTEMS: Ends November With $62.03 Million in Cash
-------------------------------------------------------
A123 Systems, Inc., et al., on Jan. 3, 2013, filed its monthly
operating report for the month ended Nov. 30, 2012.
The Debtor reported a net loss of $18.5 million on total revenue
of $9.31 million for the month ended Nov. 30, 2012.
As of Nov. 30, 2012, the Debtor had total assets of $524.99
million, total liabilities of $420.88 million and total
stockholders' equity of $104.11 million.
At the beginning of November, A123 Systems had $31.79 million in
cash. The Debtor had total cash receipts of $17.13 million and
total operating disbursements of $16.31 million. It also had
interim DIP loan borrowings of $34.5 million for November. As a
result, at the end of the month, A123 Systems had total cash of
$62.03 million.
A full-text copy of the monthly operating report is available at:
http://is.gd/9Dfvwe
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.
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.
A123 sought bankruptcy protection 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. At an auction early in December, JCI's bid
was topped by Wanxiang America's $256.6 million offer.
The Bankruptcy Court approved the sale on Dec. 11. Wanxiang is
buying most of A123, except for its government business. Navitas
Systems, a Chicago-area company spun off from Sun MicroSystems, is
buying A123's government business for $2.25 million. The sale is
expected to close come Feb. 1.
JCI has filed an appeal from the sale approval.
AMERICAN SUZUKI: Lists $78.85 Million Net Loss in November
----------------------------------------------------------
American Suzuki Motor Corporation, on Dec. 28, 2012, filed its
first monthly operating report for the period ended Nov. 30, 2012.
The Company reported a net loss of $78.85 million on net sales of
$28.15 million for the period ended Nov. 30, 2012.
As of Nov. 30, 2012, the Company had total assets of $234.98
million, total liabilities of $398.14 million and total
stockholders' deficit of $163.16 million.
At the end of November, American Suzuki had total cash of $10.56
million.
About 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. The Debtor disclosed assets of $233 million
and liabilities totaling $346 million. Debt includes $32 million
owing to the parent on a revolving credit and $120 million for
inventory financing. There is about $4 million owing to trade
suppliers.
The Debtor also filed a plan of reorganization together with the
petition. Under the proposed Plan, the Motorcycles/ATV and Marine
Divisions will remain largely unaffected including the warranties
associated with the products. NounCo, Inc., a wholly owned
subsidiary of SMC, will purchase the Motorcycles/ATV and Marine
Divisions and the parts and service components of the Automotive
Division. The restructured Automotive Division intends to honor
automotive warranties and authorize the sale of genuine Suzuki
automotive parts and services to retail customers through a
network of parts and service only dealerships that will provide
warranty services.
Bankruptcy Judge Catherine E. Bauer signed an order Oct. 6
reassigning the case to Judge Scott Clarkson. 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.
SMC is represented by lawyers at Klee, Tuchin, Bogdanoff & Stern
LLP.
AMERICANWEST BANCORP: Lists $8,413 Net Loss in December
-------------------------------------------------------
AmericanWest Bancorporation, on Jan. 17, 2013, filed its monthly
operating report for the month ended Dec. 31, 2012.
The Debtor reported a net loss of $8,413 for the month ended
Dec. 31, 2012.
As of Dec. 31, 2012, the Debtor had total assets of $6.76 million,
total liabilities of $47.41 million and total stockholders'
deficit of $40.65 million.
At the end of December, the Debtor had total cash of $5.33
million.
A full-text copy of the monthly operating report is available at:
http://is.gd/oE2aFb
About AmericanWest Bancorporation
Headquartered in Spokane, Washington, AmericanWest Bancorporation
(OTC BB: AWBC) -- http://www.awbank.net/-- was a bank holding
company whose principal subsidiary was AmericanWest Bank, which
included Far West Bank in Utah operating as an integrated division
of AmericanWest Bank. AmericanWest Bank was a community bank with
58 financial centers located in Washington, Northern Idaho and
Utah.
AmericanWest Bancorporation filed for Chapter 11 protection
(Bankr. E.D. Wash. Case No. 10-06097) on Oct. 28, 2010. The
banking subsidiary was not included in the Chapter 11 filing.
Christopher M. Alston, Esq., and Dillon E. Jackson, Esq., at
Foster Pepper Shefelman PLLC, in Seattle, Washington, serve as
bankruptcy counsel. G. Larry Engel, Esq., at Morrison & Foerster
LLP, also serves as counsel.
The Debtor estimated assets of $1 million to $10 million and debts
of $10 million to $50 million in its Chapter 11 petition.
AmericanWest Bancorporation's estimates exclude its banking unit's
assets and debts. In its Form 10-Q filed with the Securities and
Exchange Commission before the Petition Date, AmericanWest
Bancorporation reported consolidated assets -- including its bank
unit's -- of $1.536 billion and consolidated debts of
$1.538 billion as of Sept. 30, 2010.
In December 2010, AmericanWest completed the sale of all
outstanding shares of AmericanWest Bank to a wholly owned
subsidiary of SKBHC Holdings LLC, in a transaction approved by the
U.S. Bankruptcy Court.
American West filed a Chapter 11 plan hammered out with secured
lenders owed $177.5 million. The lenders will take ownership and
receive a new $49.6 million mortgage in return for existing debt.
They will invest $10 million to be used as working capital to make
payments under the plan.
ARCAPITA BANK: Reports $21.71 Million Net Loss in December
----------------------------------------------------------
Arcapita Bank B.S.C., on Jan. 15, 2013, filed its monthly
operating report for the month ended Dec. 31, 2012.
The Debtor reported a net loss of $21.71 million on total income
of $77,531 for the month ended Dec. 31, 2012.
As of Dec. 31, 2012, the Debtor had total assets of $4.09 billion,
total liabilities of $3.27 million and total stockholders' equity
of $817.38 million.
About Arcapita Bank
Arcapita Bank B.S.C., also known as First Islamic Investment Bank
B.S.C., along with affiliates, filed for Chapter 11 protection
(Bankr. S.D.N.Y. Lead Case No. 12-11076) in Manhattan on March 19,
2012. The Debtors said they do not have the liquidity necessary
to repay a US$1.1 billion syndicated unsecured facility when it
comes due on March 28, 2012.
Falcon Gas Storage Company, Inc., later filed a Chapter 11
petition (Bankr. S.D.N.Y. Case No. 12-11790) on April 30, 2012.
Falcon Gas is an indirect wholly owned subsidiary of Arcapita that
previously owned the natural gas storage business NorTex Gas
Storage Company LLC. In early 2010, Alinda Natural Gas Storage I,
L.P. (n/k/a Tide Natural Gas Storage I, L.P.), Alinda Natural Gas
Storage II, L.P. (n/k/a Tide Natural Gas Storage II, L.P.)
acquired the stock of NorTex from Falcon Gas for $515 million.
Arcapita guaranteed certain of Falcon Gas' obligations under the
NorTex Purchase Agreement.
The Debtors tapped Gibson, Dunn & Crutcher LLP as bankruptcy
counsel, Linklaters LLP as corporate counsel, Towers & Hamlins LLP
as international counsel on Bahrain matters, Hatim S Zu'bi &
Partners as Bahrain counsel, KPMG LLP as accountants, Rothschild
Inc. and financial advisor, and GCG Inc. as notice and claims
agent.
Milbank, Tweed, Hadley & McCloy LLP represents the Official
Committee of Unsecured Creditors. Houlihan Lokey Capital, Inc.,
serves as its financial advisor and investment banker.
Founded in 1996, Arcapita is a global manager of Shari'ah-
compliant alternative investments and operates as an investment
bank. Arcapita is not a domestic bank licensed in the United
States. Arcapita is headquartered in Bahrain and is regulated
under an Islamic wholesale banking license issued by the Central
Bank of Bahrain. The Arcapita Group employs 268 people and has
offices in Atlanta, London, Hong Kong and Singapore in addition to
its Bahrain headquarters. The Arcapita Group's principal
activities include investing on its own account and providing
investment opportunities to third-party investors in conformity
with Islamic Shari'ah rules and principles.
The Arcapita Group has roughly US$7 billion in assets under
management. On a consolidated basis, the Arcapita Group owns
assets valued at roughly US$3.06 billion and has liabilities of
roughly US$2.55 billion. The Debtors owe US$96.7 million under
two secured facilities made available by Standard Chartered Bank.
Arcapita explored out-of-court restructuring scenarios but was
unable to achieve 100% lender consent required to effectuate the
terms of an out-of-court restructuring.
Subsequent to the Chapter 11 filing, Arcapita Investment Holdings
Limited, a wholly owned Debtor subsidiary of Arcapita in the
Cayman Islands, issued a summons seeking ancillary relief from the
Grand Court of the Cayman Islands with a view to facilitating the
Chapter 11 cases. AIHL sought the appointment of Zolfo Cooper as
provisional liquidator.
ARCHDIOCESE OF MILWAUKEE: Has $6.80 Million Cash at Dec. 31
-----------------------------------------------------------
Archdiocese of Milwaukee
Statement of Financial Position
As of December 31, 2012
ASSETS
CURRENT ASSETS
Cash and cash equivalents $6,797,008
Short-term investments 1,494,406
Receivables, net 7,190,459
Other Assets 1,411,191
----------
Total Current Assets 16,893,065
Ground burial & mausoleum crypt sites 5,168,755
Property and equipment, net 5,074,457
INVESTMENTS AND OTHER ASSETS
Long-term investments 10,549,671
Cemeteries Pre-Need Trust Fund Acct 3,888,214
Charitable gift annuities investments 613,980
Other Assets 1,049,462
----------
Total Investments and Other Assets 16,101,329
----------
$43,237,608
TOTAL ASSETS ==========
Note: Invested funds held for others totaled $2,929,548.
LIABILITIES AND NET ASSETS
CURRENT LIABILITIES
Current maturities of charitable
gift annuities $77,449
Accounts payable 312,903
Accrued expenses 378,214
Chapter 11 expenses 700,380
Contributions payable 2,557,224
----------
Total Current Liabilities 4,026,172
Charitable gift annuities 413,295
Deferred revenue 3,888,214
PREPETITION DEBT
Note payable 4,649,912
Pre-Chapter 11 payables 701,587
Contractual contributions payable 3,378,536
Accrued post-retirement and
pension benefits 18,938,606
----------
Total Prepetition Debt 27,668,642
----------
Total Liabilities 35,996,324
NET ASSETS
Unclassified current year operations (83,938)
Unclassified prior year operations -
Unrestricted
Undesignated operating (deficit) (10,424,767)
Designated 5,097,567
----------
Total unrestricted (5,411,138)
Temporarily restricted 8,936,055
Permanently restricted 3,716,366
----------
Total Net Assets 7,241,283
----------
TOTAL LIABILITIES AND NET ASSETS $43,237,608
==========
Note: Invested funds held for others totaled $2,929,548.
Archdiocese of Milwaukee
Statements of Activities
For the month ending December 31, 2012
CHANCERY
SUPPORT AND REVENUE
Contributions $617,941
Parish assessments (6,984)
Tuition and fees 21,571
Activities and programs 1,232
Miscellaneous revenues 57,719
----------
Total Support and Revenue 691,481
CHANCERY OPERATING EXPENSES
Payroll and fringe benefits 614,394
Maintenance, insurance, utility costs 78,710
Travel and education 10,571
Supplies and services 99,182
Assessments 42,469
Purchased services 104,000
Professional services 413,978
Charity and donations 257,878
Miscellaneous expenses 100,931
Pension related changes other than NPPC -
----------
Total Operating Expenses 1,722,117
Chancery income before fixed assets, ----------
non-operational gain (loss), and (1,030,636)
extraordinary expense
FIXED ASSETS
Fixed asset purchases -
Depreciation expense (17,095)
Impairment of leasehold improvements -
Gain(loss) on sale of property and
equipment, net -
----------
Total Fixed Asset Expense (Income) (17,095)
NON-OPERATING ACTIVITIES
Investment income 29,611
Net realized gains(losses) 73,741
Net unrealized gains(losses) (115,683)
Interest expense (21,059)
Other non-operating revenues(expenses) -
----------
Total non-operating activities (33,389)
----------
Extraordinary events, net -
----------
CHANCERY NET GAIN(LOSS) (1,081,121)
Reimbursed operations net gain(loss) 122,989
----------
Change in net assets before cumulative (958,131)
effect and cemetery operations
Cumulative effect of change in -
accounting principle
----------
Chancery change in net assets (958,131)
Cemetery operations
Cemetery gain(loss) 331,660
----------
Cemetery change in net assets 331,660
----------
TOTAL CHANGE IN NET ASSETS ($626,471)
==========
Archdiocese of Milwaukee
Cash Receipts
For the month ending December 31, 2012
Receipt Category
Contributions $613,861
Assessments -
Tuition and fees 21,824
Cemetery cash receipts/transfers 242,520
Investment income 36
Realized gains -
Gains on sales of fixed assets -
Miscellaneous revenues 521,370
Clearing 38,657
A/R & N/R payments 741,048
----------
Total Receipts $2,179,319
Notes: Funds transferred in from other
Archdiocesan accounts $2,226,808
Funds held for others $109,909
==========
Archdiocese of Milwaukee
Cash Disbursements
For the month ending December 31, 2012
Disbursements Category
Salary and wages $445,325
Payroll taxes 157,483
Employee benefits 219,741
Employee withholdings 73,359
Facility and operating 292,630
Travel and education 20,833
Supplies 43,465
Assessments 42,595
Purchased services 167,782
Legal/Professional 647,959
Grants 257,753
Interest and bank fees 22,748
Other 78,537
Reimbursed expense 40,073
Clearing 5,107
Fee assistance -
----------
Total Disbursements $2,515,396
Notes: Funds transferred in from other
Archdiocesan accounts $2,081,808
Funds held for others $82,348
==========
About Archdiocese of Milwaukee
The Diocese of Milwaukee was established on Nov. 28, 1843, and
was elevated to an Archdiocese on Feb. 12, 1875, by Pope Pius
IX. The region served by the Archdiocese consists of 4,758 square
miles in southeast Wisconsin which includes counties Dodge, Fond
du Lac, Kenosha, Milwaukee, Ozaukee, Racine, Sheboygan, Walworth,
Washington and Waukesha. There are 657,519 registered Catholics
in the Region.
The Catholic Archdiocese of Milwaukee, in Wisconsin, filed for
Chapter 11 bankruptcy protection (Bankr. E.D. Wisc. Case No.
11-20059) on Jan. 4, 2011, to address claims over sexual abuse
by priests on minors.
The Archdiocese became at least the eighth Roman Catholic diocese
in the U.S. to file for bankruptcy to settle claims from current
and former parishioners who say they were sexually molested by
priests.
Daryl L. Diesing, Esq., at Whyte Hirschboeck Dudek S.C., in
Milwaukee, Wisconsin, serves as the Archdiocese's counsel. The
Official Committee of Unsecured Creditors in the bankruptcy case
has retained Pachulski Stang Ziehl & Jones LLP as its counsel, and
Howard, Solochek & Weber, S.C., as its local counsel.
The Archdiocese estimated assets and debts of $10 million to
$50 million in its Chapter 11 petition.
(Catholic Church Bankruptcy News; Bankruptcy Creditors' Service,
Inc., http://bankrupt.com/newsstand/or 215/945-7000)
BEAR ISLAND: Ends November With $9.31 Million in Cash
-----------------------------------------------------
Bear Island Paper Company, LLC, on Dec. 29, 2012, filed its
monthly operating report for the month ended Nov. 30, 2012.
The Debtor posted a net loss of $66,700 for the month ended
Nov. 30, 2012.
As of Nov. 30, 2012, the Debtor had total assets of $29.3 million,
total liabilities of $137.95 million and total stockholders'
deficit of $108.65 million.
At the beginning of the month, Bear Island had $9.38 million in
cash. The Debtor had total cash disbursements of $66,700. As a
result, at the end of November, Bear Island had total cash of
$9.31 million.
About Bear Island
Canada-based White Birch Paper Company is the second largest
newsprint producer in North America. As of Dec. 31, 2009, the
White Birch Group held a 12% share of the North American newsprint
market and employed roughly 1,300 individuals (the majority of
which reside in Canada). Bear Island Paper Company, L.L.C., is a
U.S.-based unit of White Birch.
Bear Island filed a voluntary petition for relief under Chapter 11
of the Bankruptcy Code (Bankr. E.D. Va. Case No. 10-31202) on
Feb. 24, 2010. At June 30, 2011, the Company had $141.9 million
in total assets, $153.2 million in total liabilities, and a
stockholders' deficit of $11.3 million.
White Birch filed for bankruptcy protection under Canada's
Companies' Creditors Arrangement Act, before the Superior Court
for the Province of Quebec, Commercial Division, Judicial District
of Montreal, Canada. White Birch and five other affiliates --
F.F. Soucy Limited Partnership; F.F. Soucy, Inc. & Partners,
Limited Partnership; Papier Masson Ltee; Stadacona Limited
Partnership; and Stadacona General Partner, Inc. -- also sought
bankruptcy protection under Chapter 15 of the U.S. Bankruptcy Code
(Bankr. E.D. Va. Case No. 10-31234). Jonathan L. Hauser, Esq., at
Troutman Sanders LLP, in Virginia Beach, Virginia Beach, serves as
counsel to White Birch in the Chapter 11 case.
Richard M. Cieri, Esq., Christopher J. Marcus, Esq., and Michael
A. Cohen, Esq., at Kirkland & Ellis LLP, in New York, serve as
counsel to Bear Island. Jonathan L. Hauser, Esq., at Troutman
Sanders LLP, in Virginia Beach, Virginia, serve as co-counsel to
Bear Island.
AlixPartners LLP serves as financial and restructuring advisors to
Bear Island, and Lazard Freres & Co., serves as investment banker.
Garden City Group is the claims and notice agent. Jason William
Harbour, Esq., at Hunton & Williams LLP, in Richmond, Virginia,
represents the Official Committee of Unsecured Creditors.
Chief Judge Douglas O. Tice, Jr., handles the Chapter 11 and
Chapter 15 cases.
Bear Island was authorized by the bankruptcy judge in November
2010 to sell the business to a group consisting of Black Diamond
Capital Management LLC, Credit Suisse Group AG and Caspian Capital
Advisors LLC.
Bear Island's Chapter 11 plan is currently scheduled for approval
at a Feb. 14, 2012 confirmation hearing. Under the plan proposed
by the subsidiary of Canada's White Birch Paper Co., first- and
second-lien creditors with $424.9 million and $105.1 million in
claims, respectively, are expected to recover between 0.5 percent
and 4 percent. Unsecured creditors with $1.4 million in claims
are to receive the same dividend.
DEWEY & LEBOEUF: Reports $209.86-Mil. Total Liabilities at Dec. 31
------------------------------------------------------------------
Dewey & Leboeuf LLP, on Jan. 16, 2013, filed its monthly operating
report for the month ended Dec. 31, 2012.
As of Dec. 31, 2012, the Company had total assets of $112.53
million, total liabilities of $209.86 million and total
stockholders' deficit of $97.32 million.
At the beginning of December, the Company had $23.72 million in
cash. The Company had total cash receipts of $14.28 million
and total cash disbursements of $6.03 million. As a result, at
the end of the month, Dewey & Leboeuf had $31.97 million.
About Dewey & LeBoeuf
Dewey & LeBoeuf LLP sought Chapter 11 bankruptcy (Bankr. S.D.N.Y.
Case No. 12-12321) to complete the wind-down of its operations.
The firm had struggled with high debt and partner defections.
Dewey disclosed debt of $245 million and assets of $193 million in
its chapter 11 filing late evening on May 29, 2012.
Dewey & LeBoeuf LLP operated as a prestigious, New York City-
based, law firm that traced its roots to the 2007 merger of Dewey
Ballantine LLP -- originally founded in 1909 as Root, Clark & Bird
-- and LeBoeuf, Lamb, Green & MacCrae LLP -- originally founded in
1929. In recent years, more than 1,400 lawyers worked at the firm
in numerous domestic and foreign offices.
At its peak, Dewey employed about 2,000 people with 1,300 lawyers
in 25 offices across the globe. When it filed for bankruptcy,
only 150 employees were left to complete the wind-down of the
business.
Dewey's offices in Hong Kong and Beijing are being wound down.
The partners of the separate partnership in England are in process
of winding down the business in London and Paris, and
administration proceedings in England were commenced May 28. All
lawyers in the Madrid and Brussels offices have departed. Nearly
all of the lawyers and staff of the Frankfurt office have
departed, and the remaining personnel are preparing for the
closure. The firm's office in Sao Paulo, Brazil, is being
prepared for closure and the liquidation of the firm's local
affiliate. The partners of the firm in the Johannesburg office,
South Africa, are planning to wind down the practice.
The firm's ownership interest in its practice in Warsaw, Poland,
was sold to the firm of Greenberg Traurig PA on May 11 for
$6 million. The Pension Benefit Guaranty Corp. took $2 million of
the proceeds as part of a settlement.
Judge Martin Glenn oversees the case. Albert Togut, Esq., at
Togut, Segal & Segal LLP, represents the Debtor. Epiq Bankruptcy
Solutions LLC serves as claims and notice agent. The petition was
signed by Jonathan A. Mitchell, chief restructuring officer.
JPMorgan Chase Bank, N.A., as Revolver Agent on behalf of the
lenders under the Revolver Agreement, hired Kramer Levin Naftalis
& Frankel LLP. JPMorgan, as Collateral Agent for the Revolver
Lenders and the Noteholders, hired FTI Consulting and Gulf
Atlantic Capital, as financial advisors. The Noteholders hired
Bingham McCutchen LLP as counsel.
The U.S. Trustee formed two committees -- one to represent
unsecured creditors and the second to represent former Dewey
partners. The creditors committee hired Brown Rudnick LLP led by
Edward S. Weisfelner, Esq., as counsel. The Former Partners hired
Tracy L. Klestadt, Esq., and Sean C. Southard, Esq., at Klestadt &
Winters, LLP, as counsel.
Dewey filed a Chapter 11 Plan of Liquidation and an accompanying
Disclosure Statement on Nov. 21, 2012. It filed amended plan
documents on Dec. 31, in an attempt to address objections lodged
by various parties. A second iteration was filed Jan. 7, 2013.
The plan is based on a proposed settlement between secured lenders
and Dewey's official unsecured creditors' committee. It also
incorporates a settlement approved by the bankruptcy court in
October where 440 former partners will receive releases in return
for $71.5 million in contributions.
HOSTESS BRANDS: Has $35.30 Million Cash at Dec. 15
--------------------------------------------------
Hostess Brands, Inc., et al., on Jan. 18, 2013, filed its monthly
operating report for the period from Nov. 18 to Dec. 15, 2012.
The Debtor posted a net loss of $1.13 billion on net revenue of
$3.09 million for the period ended Dec. 15, 2012.
As of Dec. 15, 2012, Hostess Brands had total assets of $834.11
million, total liabilities of $3.55 billion and total
stockholders' deficit of $2.71 billion.
At the beginning of the period, Hostess Brands had $30.22 million
in cash. The Debtor had total cash receipts of $87.24 million and
total cash disbursements of $82.15 million. As a result, as of
Dec. 15, 2012, the Debtor had total cash of $35.30 million.
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. DHostess Brands disclosed
assets of $982 million and liabilities of $1.43 billion as of the
Chapter 11 filing.
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).
In the new Chapter 11 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.
The official committee of unsecured creditors 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.
Hostess Brands in mid-November opted to pursue the orderly wind
down of its business and sale of its assets after the Bakery,
Confectionery, Tobacco and Grain Millers Union (BCTGM) commenced a
nationwide strike. The Debtor failed to reach an agreement with
BCTGM on contract changes. Hostess Brands said it intends to
retain approximately 3,200 employees to assist with the initial
phase of the wind down. Employee headcount is expected to decrease
by 94% within the first 16 weeks of the wind down. The entire
process is expected to be completed in one year.
K-V PHARMACEUTICAL: Ends December With $34.88 Million in Cash
-------------------------------------------------------------
K-V Discovery Solutions, Inc., et al., on Jan. 15, 2013, filed its
monthly operating report for the month ended Dec. 31, 2012.
The Company posted a net income of $39.63 million on net revenues
of $6.98 million for the month ended Dec. 31, 2012.
As of Dec. 31, 2012, the Company had total assets of $220.44
million, total liabilities of $694.63 million and total
stockholders' deficit of $474.19 million.
For the month of December, the Company had total cash receipts of
$94.61 million and total cash disbursements of $71.53 million. At
the end of the month, K-V Discovery Solutions had total cash of
$34.88 million.
About K-V Pharmaceutical
K-V Pharmaceutical Company (NYSE: KVa/KVb) --
http://www.kvpharmaceutical.com/-- is a fully integrated
specialty pharmaceutical company that develops, manufactures,
markets, and acquires technology-distinguished branded and
generic/non-branded prescription pharmaceutical products. The
Company markets its technology distinguished products through
ETHEX Corporation, a subsidiary that competes with branded
products, and Ther-Rx Corporation, the company's branded drug
subsidiary.
K-V Pharmaceutical Company and certain domestic subsidiaries on
Aug. 4, 2012, filed voluntary Chapter 11 petitions (Bankr.
S.D.N.Y. Lead Case No. 12-13346, under K-V Discovery Solutions
Inc.) to restructure their financial obligations.
K-V employed Willkie Farr & Gallagher LLP as bankruptcy counsel,
Williams & Connolly LLP as special litigation counsel, and SNR
Denton as special litigation counsel. In addition, K-V tapped
Jefferies & Co., Inc., as financial advisor and investment banker.
Epiq Bankruptcy Solutions LLC is the claims and notice agent.
The U.S. Trustee appointed five members to serve in the Official
Committee of Unsecured Creditors. Kristopher M. Hansen, Esq.,
Erez E. Gilad, Esq., and Matthew G. Garofalo, Esq., at Stroock &
Stroock & Lavan LLP, represent the Creditors Committee.
Weil, Gotshal & Manges LLP's Robert J. Lemons, Esq., and Lori R.
Fife, Esq., represent an Ad Hoc Senior Noteholders Group.
LIGHTSQUARED INC: Reports $121 Million Net Loss in December
-----------------------------------------------------------
LightSquared Inc., et al., on Jan. 15, 2013, filed its monthly
operating report for the month ended Dec. 31, 2012.
The Company reported a net loss of $121.51 million on net revenue
of $2.55 million for the month ended Dec. 31, 2012.
As of Dec. 31, 2012, the Company had total assets of $3.94
billion, total liabilities of $2.56 billion and total
stockholders' equity of $1.37 billion.
At the beginning of the month, LightSquared had $183.51 million in
cash. The Company had total cash receipts of $1.66 million and
total cash disbursements of $13.14 million. As a result, at the
end of December, the Company had total cash of $172.03 million.
About LightSquared Inc.
LightSquared Inc. and 19 of its affiliates filed Chapter 11
bankruptcy petitions (Bankr. S.D.N.Y. Lead Case No. 12-12080) on
May 14, 2012, as the Company seeks to resolve regulatory issues
that have prevented it from building its coast-to-coast integrated
satellite 4G wireless network.
LightSquared had invested more than $4 billion to deploy an
integrated satellite-terrestrial network. In February 2012,
however, the U.S. Federal Communications Commission told
LightSquared the agency would revoke a license to build out the
network as it would interfere with global positioning systems used
by the military and various industries. In March 2012, the
Company's partner, Sprint, canceled a master services agreement.
LightSquared's lenders deemed the termination of the Sprint
agreement would trigger cross-defaults under LightSquared's
prepetition credit agreements.
LightSquared and its prepetition lenders attempted to negotiate a
global restructuring that would provide LightSquared with
liquidity and runway necessary to resolve its issues with the FCC.
Despite working diligently and in good faith, however,
LightSquared and the lenders were not able to consummate a global
restructuring on terms acceptable to all interested parties.
RITZ CAMERA: Ends November With $224,239 in Cash
------------------------------------------------
Ritz Camera & Image, LLC, on Jan. 14, 2013, filed its monthly
operating report for the month ended Nov. 30, 2012.
The Company posted a net income of $2.48 million on total sales of
$129 for the month ended Nov. 30, 2012.
As of Nov. 30, 2012, Ritz Camera had total assets of
$12.93 million, total liabilities of $34.63 million and total
stockholders' deficit of $21.7 million.
At the beginning of the month, Ritz Camera had $397,392 in cash.
The Company had total cash receipts of $1.23 million and total
operating disbursements of $1.54 million. The Company also had a
loan paydown of $327,754. As a result, at the end of November,
Ritz Camera had total cash of $224,239.
About Ritz Camera
Beltsville, Maryland-based Ritz Camera & Image LLC --
http://www.ritzcamera.com-- sold digital cameras and
accessories, and electronic products. It sought Chapter 11
protection (Bankr. D. Del. Case No. 12-11868) on June 22, 2012, to
close unprofitable stores. Ritz claims to be the largest camera
and image chain the U.S., operating 265 camera stores in 34 states
as well as an Internet business. When it filed for bankruptcy,
Ritz Camera intended to shut 128 locations and cut its staff in
half. Included in the closing are 10 locations in Maryland and 4
in Virginia.
Affiliate Ritz Interactive Inc., owner e-commerce Web sites that
include RitzCamera.com and BoatersWorld.com, also filed for
bankruptcy.
RCI's predecessor, Ritz Camera Centers, Inc., sought Chapter 11
protection (Bankr. D. Del. Case No. 09-10617) on Feb. 22, 2009.
Ritz generated $40 million by selling all 129 Boater's World
Marine Centers. A group that included the company's chief
executive officer, David Ritz, formed Ritz Camera & Image to buy
at least 163 of the remaining 375 camera stores. The group paid
$16.25 million in cash and a $7.8 million note. Later, Ritz sold
a $4 million account receivable for $1.5 million to an owner of
the company that owed the debt.
In the 2009 petition, Ritz disclosed total assets of $277 million
and total debts of $172.1 million. Lawyers at Cole, Schotz,
Meisel, Forman & Leonard, P.A., served as bankruptcy counsel.
Thomas & Libowitz, P.A., served as the Debtor's special corporate
counsel and conflicts counsel. Marc S. Seinsweig, at FTI
Consulting, Inc., served as the Debtor's chief restructuring
officer. Kurtzman Carson Consultants LLC acted as claims and
noticing agent. Attorneys at Cooley Godward Kronish LLP and
Bifferato LLC represented the official committee of unsecured
creditors as counsel.
In April 2010, the Court approved a liquidating Chapter 11 plan
proposed by the company and the official creditor's committee.
Under the Plan, unsecured creditors were to recover 4% to 14% of
their claims.
Ritz Camera disclosed $43,692,961 in assets and $49,147,316 in
liabilities as of the Chapter 11 filing. The Debtors owe not less
than $16.32 million for term and revolving loans provided by
secured lenders led by Crystal Finance LLC, as administrative
agent.
Subsequently, at the Company's behest, Judge Kevin Gross converted
the Chapter 11 cases proceedings under Chapter 7 of the Bankruptcy
Code effective on January 15, 2013.
Attorneys at Cole, Schotz, Meisel, Forman & Leonard, P.A., serve
as bankruptcy counsel. Kurtzman Carson Consultants LLC is the
claims agent.
WeinsweigAdvisors LLC's Marc Weinsweig has been appointed as
Ritz's CRO.
Mark L. Desgrosseilliers, Esq., and Ericka F. Johnson, Esq., at
Womble Carlyle Sandridge & Rice, LLP, represent liquidators Gordon
Brothers Retail Partners LLC and Hilco Merchant Resources LLC.
Crystal Finance, the DIP lender, is represented by Morgan, Lewis &
Bockius and Young Conaway Stargatt & Taylor LLP.
Roberta A. DeAngelis, U.S. Trustee for Region 3, pursuant to
Section 1102(a)(1) of the Bankruptcy Code, appointed six persons
to Official Committee of Unsecured Creditors.
*********
Monday's edition of the TCR delivers a list of indicative prices
for bond issues that reportedly trade well below par. Prices are
obtained by TCR editors from a variety of outside sources during
the prior week we think are reliable. Those sources may not,
however, be complete or accurate. The Monday Bond Pricing table
is compiled on the Friday prior to publication. Prices reported
are not intended to reflect actual trades. Prices for actual
trades are probably different. Our objective is to share
information, not make markets in publicly traded securities.
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Each Tuesday edition of the TCR contains a list of companies with
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then-ending.
For copies of court documents filed in the District of Delaware,
please contact Vito at Parcels, Inc., at 302-658-9911. For
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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
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