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/raid1/www/Hosts/bankrupt/TCR_Public/130608.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, June 8, 2013, Vol. 17, No. 157 Headlines ALLIED SYSTEMS: Reports $2.38 Million Net Loss for March AMERICAN AIRLINES: Posts April Loss BETSEY JOHNSON: Ends February With $1.36 Million Cash BETSEY JOHNSON: Posts $130,599 Net Loss in March CENTRAL EUROPEAN: Records $641,331 Net Loss in April DIGITAL DOMAIN: Ends February with $5.75 Million Cash DIGITAL DOMAIN: Posts $3.19 Million Net Loss at March 31 EASTMAN KODAK: Posts $46.28 Million Net Loss for April GMX RESOURCES: Incurs $7 Million Net Loss in April HANDY HARDWARE: Ends February With $2.27 Million Cash HANDY HARDWARE: Records $2.74 Million Net PreTax Loss for March HOSTESS BRANDS: Has $2.8BB Stockholders Deficit at April 6 JOURNAL REGISTER: Lists $825,000 Net Loss at March 31 LIGHTSQUARED INC: Lists $48.078 Million Net Loss in April MF GLOBAL: Has $797,647 Cash at April 30 MONITOR COMPANY: Records $590,077 Net Loss for February POWERWAVE TECHNOLOGIES: Has $8.65MM Net Loss for Pd. Ended March 3 READERS' DIGEST: Reports $2.3-Mil. Net Loss in April RG STEEL: WP Steel Ends April With $1.69 Million Cash THORNBURG MORTGAGE: Ends April With $27.68 Million in Cash ********* ALLIED SYSTEMS: Reports $2.38 Million Net Loss for March -------------------------------------------------------- Allied Systems Holdings, Inc., et al., on April 30, 2013, filed its monthly operating report for the month ended March 31, 2013. The Debtor reported a net loss of $2.38 million on revenues of $25.65 million for the month ended March 31, 2013. Operating loss was at $1.44 million. As of March 31, 2013, the Debtor had total assets of $230.81 million, total liabilities of $479.44 million, and total stockholders' deficit of $344.18 million. For March, the Debtor had total deposits of $24.86 million and total disbursements of $27.09 million. A full-text copy of the monthly operating report is available at: http://bankrupt.com/misc/ALLIED_SYSTEMS_marchmor.pdf About Allied Systems BDCM Opportunity Fund II, LP, Spectrum Investment Partners LP, and Black Diamond CLO 2005-1 Adviser L.L.C., filed involuntary petitions for Allied Systems Holdings Inc. and Allied Systems Ltd. (Bankr. D. Del. Case Nos. 12-11564 and 12-11565) on May 17, 2012. The signatories of the involuntary petitions assert claims of at least $52.8 million for loan defaults by the two companies. Allied Systems, through its subsidiaries, provides logistics, distribution, and transportation services for the automotive industry in North America. Allied Holdings Inc. previously filed for chapter 11 protection (Bankr. N.D. Ga. Case Nos. 05-12515 through 05-12537) on July 31, 2005. Jeffrey W. Kelley, Esq., at Troutman Sanders, LLP, represented the Debtors in the 2005 case. Allied won confirmation of a reorganization plan and emerged from bankruptcy in May 2007 with $265 million in first-lien debt and $50 million in second- lien debt. The petitioning creditors said Allied has defaulted on payments of $57.4 million on the first lien debt and $9.6 million on the second. They hold $47.9 million, or about 20% of the first-lien debt, and about $5 million, or 17%, of the second-lien obligation. They are represented by Adam G. Landis, Esq., and Kerri K. Mumford, Esq., at Landis Rath & Cobb LLP; and Adam C. Harris, Esq., and Robert J. Ward, Esq., at Schulte Roth & Zabel LLP. Allied Systems Holdings Inc. formally put itself and 18 subsidiaries into bankruptcy reorganization June 10, 2012, following the filing of the involuntary Chapter 11 petition. The Company is being advised by the law firms of Troutman Sanders, Gowling Lafleur Henderson, and Richards Layton & Finger. The bankruptcy court process does not include captive insurance company Haul Insurance Limited or any of the Company's Mexican or Bermudan subsidiaries. The Company also announced that it intends to seek foreign recognition of its Chapter 11 cases in Canada. An official committee of unsecured creditors has been appointed in the case. The Committee consists of Pension Benefit Guaranty Corporation, Central States Pension Fund, Teamsters National Automobile Transporters Industry Negotiating Committee, and General Motors LLC. The Committee is represented by Sidley Austin LLP. Yucaipa Cos. has 55 percent of the senior debt and took the position it had the right to control actions the indenture trustee would take on behalf of debt holders. The state court ruled in March 2013 that the loan documents didn't allow Yucaipa to vote. In March, the bankruptcy court also gave the official creditors' committee authority to sue Yucaipa. The suit includes claims that the debt held by Yucaipa should be treated as equity or subordinated so everyone else is paid before the Los Angelesbased owner. The judge is allowing Black Diamond to participate in the lawsuit against Yucaipa and Allied directors. AMERICAN AIRLINES: Posts April Loss ----------------------------------- The Associated Press reported that American Airlines' parent lost $105 million in April, but the CEO says AMR Corp. is on track for a strong profit in the April-to-June quarter. According to the AP report, AMR narrowed its loss for April from last year's $142 million by cutting labor costs by $106 million, or 18 percent, to $478 million. The company has eliminated several thousand jobs since filing for bankruptcy protection in November 2011. The report said AMR also spent $26 million less on fuel, or $722 million. The labor and fuel cuts helped AMR reduce operating expenses by 4 percent, to $1.98 billion. Revenue, however, slipped more than 2 percent, to $1.99 billion. In a message to employees, CEO Tom Horton said the company -- which hopes to complete a merger with US Airways in September -- showed strong improvement in its financial results, the report related. "And if current trends continue, we are well on our way to a strongly profitable second quarter," Horton wrote, the report cited. The annual summer vacation season falls during the second and third quarters, making those the strongest of the year for airlines, the report noted. Horton said American's operation was "running well," boosting its one-time arrival rate to more than 78 percent and reducing cancelations to less than 2 percent of flights, the best mark in seven years. 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). BETSEY JOHNSON: Ends February With $1.36 Million Cash ----------------------------------------------------- Betsey Johnson LLC, on May 7, 2013, filed its monthly operating report for the period from Feb. 1, 2013, to Feb. 28, 2013. The Debtor reported a net loss of $83,766 for the month ended Feb. 28, 2013. As of Feb. 28, 2013, the Debtor had total assets of $1.60 million, total liabilities of $9.62 million, and total stockholders' deficit of $8 million. The Debtor has a beginning book balance of $1.44 million at the start of February. For the month, total inflow was $1,439 while total outflow was $81,707. Betsey Johnson had total ending cash balance of $1.36 million at the end of the period. A full-text copy of the monthly operating report is available at: http://bankrupt.com/misc/BETSEY_JOHNSON_febmor.pdf About Betsey Johnson New York-based women's fashion retailer Betsey Johnson LLC filed a Chapter 11 bankruptcy petition (Bankr. S.D.N.Y. Case No. 12-11732) on April 26, 2012, to effectuate a sale of its assets. Formed as B.J. Vines by its namesake, iconic fashion designer Betsey Johnson in 1978, the Debtor sells clothing, footwear, handbags and a signature fragrance through 63 Betsey Johnson retail stores and outlets in the U.S. The Company, which has 400 employees, also sells its products in department and specialty stores worldwide, including Macy's and Lord & Taylor, and online at http://www.betseyjohnson.com/ Non-debtor subsidiaries operate five stores in Canada and one store in England. In 2010, Steven Madden Ltd. a footwear designer and marketer, swapped US$27.4 million of secured debt for ownership of Betsey Johnson's trademarks and intellectual property. The deal satisfied all outstanding debt under a US$50 million term loan used to finance the business' acquisition by Castanea Partners. At the same time, Castanea, the company's majority owner, made a new capital investment of US$3 million as part of the deal with Madden. Betsey Johnson estimated assets and debts of US$10 million to US$50 million as of the Chapter 11 filing. Judge James Peck oversees the case. The Debtor tapped the law firm of Goulston & Storrs, as counsel; Togut, Segal & Segal, LLP, as co-counsel; and Donlin Recano & Company as claims and notice agent. The petition was signed by Jonathan Friedman, chief financial officer. Hahn & Hessen LLP serves as the Official Committee of Unsecured Creditors' counsel. In May 2012, Betsey Johnson received court approval to begin liquidation after the Debtor failed to attract going concern bidders. Liquidators Gordon Brothers Group Inc. and Hilco Merchant Resources LLC offered the top bid for the right to run the chain's going-out-of-business sales. The bid will bring the Debtor about $5.2 million immediately, and more money could trickle in to pay off its debts if the liquidation effort brings in more money than expected. Hilco is represented by Chris L. Dickerson, Esq., at DLA Piper LLP (US). Counsel for Steven Madden, Ltd., is Neil Herman, Esq., at Morgan, Lewis & Bockius LLP. Counsel for First Niagara Commercial Finance, Inc., the DIP Lender, is James C. Fox, Esq., at Ruberto, Israel & Weiner. BETSEY JOHNSON: Posts $130,599 Net Loss in March -------------------------------------------------- Betsey Johnson LLC, on May 17, 2013, filed its monthly operating report for the month ended March 31, 2013. The Company posted net loss of $130,599 for the month ended March 31, 2013. As of March 31, 2013, the Company had total assets of $1.38 million, total liabilities of $9.53 million and total stockholders' deficit of $8.15 million. A full-text copy of the monthly operating report is available at: http://bankrupt.com/misc/BETSEY_JOHNSON_marchmor.pdf About Betsey Johnson New York-based women's fashion retailer Betsey Johnson LLC filed a Chapter 11 bankruptcy petition (Bankr. S.D.N.Y. Case No. 12-11732) on April 26, 2012, to effectuate a sale of its assets. Formed as B.J. Vines by its namesake, iconic fashion designer Betsey Johnson in 1978, the Debtor sells clothing, footwear, handbags and a signature fragrance through 63 Betsey Johnson retail stores and outlets in the U.S. The Company, which has 400 employees, also sells its products in department and specialty stores worldwide, including Macy's and Lord & Taylor, and online at http://www.betseyjohnson.com/ Non-debtor subsidiaries operate five stores in Canada and one store in England. In 2010, Steven Madden Ltd. a footwear designer and marketer, swapped US$27.4 million of secured debt for ownership of Betsey Johnson's trademarks and intellectual property. The deal satisfied all outstanding debt under a US$50 million term loan used to finance the business' acquisition by Castanea Partners. At the same time, Castanea, the company's majority owner, made a new capital investment of US$3 million as part of the deal with Madden. Betsey Johnson estimated assets and debts of US$10 million to US$50 million as of the Chapter 11 filing. Judge James Peck oversees the case. The Debtor tapped the law firm of Goulston & Storrs, as counsel; Togut, Segal & Segal, LLP, as co-counsel; and Donlin Recano & Company as claims and notice agent. The petition was signed by Jonathan Friedman, chief financial officer. Hahn & Hessen LLP serves as the Official Committee of Unsecured Creditors' counsel. In May 2012, Betsey Johnson received court approval to begin liquidation after the Debtor failed to attract going concern bidders. Liquidators Gordon Brothers Group Inc. and Hilco Merchant Resources LLC offered the top bid for the right to run the chain's going-out-of-business sales. The bid will bring the Debtor about $5.2 million immediately, and more money could trickle in to pay off its debts if the liquidation effort brings in more money than expected. Hilco is represented by Chris L. Dickerson, Esq., at DLA Piper LLP (US). Counsel for Steven Madden, Ltd., is Neil Herman, Esq., at Morgan, Lewis & Bockius LLP. Counsel for First Niagara Commercial Finance, Inc., the DIP Lender, is James C. Fox, Esq., at Ruberto, Israel & Weiner. CENTRAL EUROPEAN: Records $641,331 Net Loss in April ---------------------------------------------------- Central European Distribution Corporation et. al., on May 10, 2013, filed its monthly operating report for the month ended April 30, 2013. The Debtor posted net loss of $641,331 for the month ended April 30, 2013. As of April 30, 2013, the Debtor had total assets of $1.66 billion, total liabilities of $335.61 million and total stockholders' equity of $1.32 billion. At the beginning of the month, Central European had $18,912 in cash. The Debtor had total cash receipts of $394,980 and total cash disbursements of $152,114. As a result, at the end of April, the Debtor had total cash of $261,778. A full-text copy of the monthly operating report is available at: http://bankrupt.com/misc/CENTRAL_EUROPEAN_aprilmor.pdf About CEDC Mt. Laurel, New Jersey-based Central European Distribution Corporation is one of the world's largest vodka producers and Central and Eastern Europe's largest integrated spirit beverages business with its primary operations in Poland, Russia and Hungary. On April 7, 2013, CEDC and two subsidiaries sought bankruptcy protection under Chapter 11 of the Bankruptcy Code (Bankr. D. Del. Lead Case No. 13-10738) with a prepackaged Chapter 11 plan that reduces debt by US$665.2 million. Attorneys at Skadden, Arps, Slate, Meagher & Flom LLP serve as legal counsel to the Debtor. Houlihan Lokey is the investment banker. Alvarez & Marsal will provide the chief restructuring officer. GCG Inc. is the claims and notice agent. The Bankruptcy Court approved the Disclosure Statement and confirmed the Second Amended and Restated Joint Prepackaged Plan of Reorganization. DIGITAL DOMAIN: Ends February with $5.75 Million Cash ----------------------------------------------------- DDMG Estate, f/k/a/ Digital Domain Media Group, Inc., et al., on May 6, 2013, filed its monthly operating report for the month ended Feb. 28, 2013. DDMG Estate reported a net profit of $3.38 million for the month ended Feb. 28, 2013. As of Feb. 28, 2013, the Debtor had total assets of $19.3 million, total liabilities of $117.96 million, and total stockholders' deficit of $98.66 million. At the beginning of February, the Debtor had $8.1 million in cash. The Debtor had total cash receipts of $22,613 and total cash disbursements of $2.36 million. As a result, as of Feb. 28, 2013, DDMG Estate had total cash of $5.75 million. A full-text copy of the monthly operating report is available at: http://bankrupt.com/misc/DIGITAL_DOMAIN_febmor.pdf About Digital Domain Port St. Lucie, Florida-based Digital Domain Media Group, Inc. -- http://www.digitaldomain.com/-- engaged in the creation of original content animation feature films, and development of computer-generated imagery for feature films and trans-media advertising primarily in the United States. Digital Domain Media Group, Inc. and 13 affiliates sought Chapter 11 protection (Bankr. D. Del. Lead Case No. 12-12568) on Sept. 11, 2012, to sell its business for $15 million to Searchlight Capital Partners LP, subject to higher and better offers. The company disclosed assets of $205 million and liabilities totaling $214 million. The Debtors also have sought ancillary relief in Canada, pursuant to the Companies' Creditors Arrangement Act in the Supreme Court of British Columbia, Vancouver Registry. Attorneys at Pachulski Stang Ziehl & Jones serve as counsel to the Debtors. FTI Consulting, Inc.'s Michael Katzenstein is the chief restructuring officer. Kurtzman Carson Consultants LLC is the claims and notice agent. An official committee of unsecured creditors appointed in the case is represented by lawyers at Sullivan Hazeltine Allinson LLC and Brown Rudnick LLP. At a bankruptcy auction, the principal part of the business was purchased by a joint venture between Galloping Horse America LLC, an affiliate of Beijing Galloping Horse Co., and an affiliate of Reliance Capital Ltd., based in Mumbai. The $36.7 million total value of the contact includes $3.6 million to cure defaults on contracts and $2.9 million in reimbursement of payroll costs. As the result of a settlement negotiated by the unsecured creditors' committee with secured lenders, there will be some recovery for the committee's constituency. DIGITAL DOMAIN: Posts $3.19 Million Net Loss at March 31 -------------------------------------------------------- DDMG Estate, f/k/a/ Digital Domain Media Group, Inc., et al., on May 6, 2013, filed its monthly operating report for the month ended March 31, 2013. DDMG Estate reported a net loss of $3.19 million for the month ended March 31, 2013. As of March 31, 2013, the Debtor had total assets of $16.55 million, total liabilities of $118.39 million and total stockholders' deficit of $101.85 million. At the beginning of March, the Debtor had $5.75 million in cash. The Debtor had total cash receipts of $71,529 and total cash disbursements of $224,576. As a result, as of March 31, 2013, DDMG Estate had total cash of $5.6 million. A full-text copy of the monthly operating report is available at: http://bankrupt.com/misc/DIGITAL_DOMAIN_marchmor.pdf About Digital Domain Port St. Lucie, Florida-based Digital Domain Media Group, Inc. -- http://www.digitaldomain.com/-- engaged in the creation of original content animation feature films, and development of computer-generated imagery for feature films and trans-media advertising primarily in the United States. Digital Domain Media Group, Inc. and 13 affiliates sought Chapter 11 protection (Bankr. D. Del. Lead Case No. 12-12568) on Sept. 11, 2012, to sell its business for $15 million to Searchlight Capital Partners LP, subject to higher and better offers. The company disclosed assets of $205 million and liabilities totaling $214 million. The Debtors also have sought ancillary relief in Canada, pursuant to the Companies' Creditors Arrangement Act in the Supreme Court of British Columbia, Vancouver Registry. Attorneys at Pachulski Stang Ziehl & Jones serve as counsel to the Debtors. FTI Consulting, Inc.'s Michael Katzenstein is the chief restructuring officer. Kurtzman Carson Consultants LLC is the claims and notice agent. An official committee of unsecured creditors appointed in the case is represented by lawyers at Sullivan Hazeltine Allinson LLC and Brown Rudnick LLP. At a bankruptcy auction, the principal part of the business was purchased by a joint venture between Galloping Horse America LLC, an affiliate of Beijing Galloping Horse Co., and an affiliate of Reliance Capital Ltd., based in Mumbai. The $36.7 million total value of the contact includes $3.6 million to cure defaults on contracts and $2.9 million in reimbursement of payroll costs. As the result of a settlement negotiated by the unsecured creditors' committee with secured lenders, there will be some recovery for the committee's constituency. EASTMAN KODAK: Posts $46.28 Million Net Loss for April ------------------------------------------------------ Eastman Kodak Company filed with the U.S. Securities and Exchange Commission on May 30, 2013, its monthly operating report for the month ended April 30, 2013. The Company posted a net loss of $46.28 million on $127.80 million of revenues for the month ended April 30, 2013. Loss from continuing operations for the month was $28.8 million. Interest expense of $17 million and $11.5 million in reorganization costs contributed to the net loss. As of April 30, 2013, the Company had $3.47 billion in total assets, $4.88 billion in total liabilities and a $1.40 billion shareholders' deficit. For the month of April, Eastman Kodak had total cash receipts of $133.72 million and cash disbursements of $194.81 million. At the end of the month, Eastman Kodak had negative cash balance of $61.087 million. A copy of the monthly operating report is available at: http://is.gd/jiEpEh 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. The Retirees Committee has hired Haskell Slaughter Young & Rediker, LLC, and Arent Fox, LLC as Co-Counsel; Zolfo Cooper, LLC, as Bankruptcy Consultants and Financial Advisors; and the Segal Company, as Actuarial Advisors. 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. Kodak completed the $527 million sale of digital-imaging technology on Feb. 1, 2013. Kodak intends to reorganize by focusing on the commercial printing business. At the end of April 2013, Kodak filed a proposed reorganization plan offering 85 percent of the stock to holders of the remaining $375 million in second-lien notes. The other 15 percent is for unsecured creditors with $2.7 billion in claims and retirees who have a $635 million claim from the loss of retirement benefits. There will be a hearing on June 13 for the U.S. Bankruptcy Court in New York to consider approving disclosure materials so creditors can begin voting on Kodak's plan. GMX RESOURCES: Incurs $7 Million Net Loss in April -------------------------------------------------- GMX Resources Inc. filed with the U.S. Securities and Exchange Commission its monthly operating report for the month of April. The Company incurred a net loss of $6.99 million on $3.91 million of total revenues for the period ended April 30, 2013. The Company's balance sheet at April 30, 2013, showed $331.92 million in total assets, $492.49 million in total liabilities, and a $160.56 million total shareholders' deficit. At the start of the reporting period, GMX Resources had a $945,484 cash balance. The Company had total receipts of $15.02 million and total disbursements of $10.08 million for the whole month of April. Thus, ending cash balance for the Company is $5.88 million. A copy of the monthly operating report is available at: http://is.gd/XpPhpA The Debtor also filed the monthly operating reports of its subsidiaries, copies of which are available for free at: http://is.gd/dB7Tra http://is.gd/OCt0m8 About GMX Resources GMX Resources Inc. -- http://www.gmxresources.com/-- is an independent natural gas production company headquartered in Oklahoma City, Oklahoma. GMXR has 53 producing wells in Texas & Louisiana, 24 proved developed non-producing reservoirs, 48 proved undeveloped locations and several hundred other development locations. GMXR has 9,000 net acres on the Sabine Uplift of East Texas. GMXR has 7 producing wells in New Mexico. The Company's strategy is to significantly increase production, revenues and reinvest in increasing production. GMXR's goal is to grow and build shareholder value every day. The Company reported net losses of $206.44 million in 2011, $138.29 million in 2010, and $181.08 million in 2009. GMX Resources filed a Chapter 11 petition in its hometown (Bankr. W.D. Okla. Case No. 13-11456) on April 1, 2013, so secured lenders can buy the business in exchange for $324.3 million in first-lien notes. GMX missed a payment due in March 2013 on $51.5 million in second- lien notes. Other principal liabilities include $48.3 million in unsecured convertible senior notes. The DIP financing provided by senior noteholders requires court approval of a sale within 75 days following approval of sale procedures. The lenders and principal senior noteholders include Chatham Asset Management LLC, GSO Capital Partners, Omega Advisors Inc. and Whitebox Advisors LLC. The Official Committee of Unsecured Creditors tapped Winston & Strawn LLP as its counsel. HANDY HARDWARE: Ends February With $2.27 Million Cash ----------------------------------------------------- Handy Hardware Wholesale, Inc., on April 17, 2013, filed its monthly operating report for the month ended Feb. 2013. The Company posted a net pretax loss of $2.15 million for February. As of Feb. 2013, the Company had total assets of $77.57 million, total liabilities of $82.7 million, and total stockholders' deficit of $5.13 million. At the beginning of the month, cash balance was $244,416. For February, the Company had total cash receipts of $29.94 million and total cash disbursements of $27.92 million. As a result, at the end of the period, Handy Hardware had total cash of $2.27 million. A full-text copy of the monthly operating report is available at: http://bankrupt.com/misc/HANDY_HARDWARE_febmor.pdf About Handy Hardware Handy Hardware Wholesale, Inc., filed a Chapter 11 petition (Bankr. D. Del. Case No. 13-10060) on Jan. 11, 2013. Handy Hardware is engaged in the business of buying goods from vendors and selling those goods at a discounted price to its members for sale in their retail stores. Handy Hardware, which has 300 employees, is operating on a cooperative basis and is completely member-owned, with over 1,000 members. The Debtor's warehouse facilities are located in Houston, Texas, and in Meridian, Mississippi. Trucking services are provided by Averitt Express, Inc., and Trans Power Corp. Its members operate 1,300 retail stores, home centers, and lumber yards. The members are located in 14 states throughout the U.S. as well as in Mexico, South America, and Puerto Rico. Bankruptcy Judge Mary F. Walrath oversees the case. Lawyers at Ashby & Geddes, P.A., serve as the Debtor's counsel. MCA Financial serves as financial advisor. Donlin Recano serves as claims and noticing agent. The Debtor disclosed $79,169,106 in assets and $77,605,085 plus an unknown in liabilities as of the Chapter 11 filing. A seven-member official committee of unsecured creditors has been appointed in the case. Gellert Scali Busenkell & Brown, LLC represents the Committee. Wells Fargo is providing a $30 million revolving credit to finance operations in Chapter 11. HANDY HARDWARE: Records $2.74 Million Net PreTax Loss for March --------------------------------------------------------------- Handy Hardware Wholesale, Inc., on May 1, 2013, filed its monthly operating report for the month ended March 2013. The Company posted a net pretax loss of $2.74 million for March. As of March 2013, the Company had total assets of $78.43 million, total liabilities of $86.2 million, and total stockholders' deficit of $7.88 million. At the beginning of March, the Company had $2.27 million in cash. The Company had total cash receipts of $31.6 million and total cash disbursements of $30.31 million. As a result, at the end of the period, Handy Hardware had total cash of $3.56 million. A full-text copy of the monthly operating report is available at: http://bankrupt.com/misc/HANDY_HARDWARE_marchmor.pdf About Handy Hardware Handy Hardware Wholesale, Inc., filed a Chapter 11 petition (Bankr. D. Del. Case No. 13-10060) on Jan. 11, 2013. Handy Hardware is engaged in the business of buying goods from vendors and selling those goods at a discounted price to its members for sale in their retail stores. Handy Hardware, which has 300 employees, is operating on a cooperative basis and is completely member-owned, with over 1,000 members. The Debtor's warehouse facilities are located in Houston, Texas, and in Meridian, Mississippi. Trucking services are provided by Averitt Express, Inc., and Trans Power Corp. Its members operate 1,300 retail stores, home centers, and lumber yards. The members are located in 14 states throughout the U.S. as well as in Mexico, South America, and Puerto Rico. Bankruptcy Judge Mary F. Walrath oversees the case. Lawyers at Ashby & Geddes, P.A., serve as the Debtor's counsel. MCA Financial serves as financial advisor. Donlin Recano serves as claims and noticing agent. The Debtor disclosed $79,169,106 in assets and $77,605,085 plus an unknown in liabilities as of the Chapter 11 filing. A seven-member official committee of unsecured creditors has been appointed in the case. Gellert Scali Busenkell & Brown, LLC represents the Committee. Wells Fargo is providing a $30 million revolving credit to finance operations in Chapter 11. HOSTESS BRANDS: Has $2.8BB Stockholders Deficit at April 6 ---------------------------------------------------------- Old HB, Inc., f/k/a Hostess Brands, Inc., et al., on May 10, 2013, filed its monthly operating report for the period from March 10 to April 6, 2013. The Debtor reported a net loss of $12 million on net revenue of $439,000 for the reporting period. As of April 6, 2013, Hostess Brands had total assets of $729.92 million, total liabilities of $3.53 billion, and total stockholders' deficit of $2.8 billion. For the reporting period, the Debtor had total cash receipts of $43 million and total cash disbursements of $32.41 million. At the end of the period, Hostess Brands had total cash of $35.75 million. A full-text copy of the monthly operating report is available at: http://bankrupt.com/misc/HOSTESS_BRANDS_marchaprilmor.pdf About Hostess Brands Hostess Brands Inc. -- 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 -- sought 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. Founded in 1930, the Irving, Texas-based company operated 36 bakeries, 565 distribution centers and 570 outlets in 49 states at the time of the filing. It disclosed assets of $982 million and liabilities of $1.43 billion as of the petition date. 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 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, represent 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 2012 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. Hostess received court approval for sales raising about $800 million. Apollo Global Management LLC and C. Dean Metropoulos & Co. bought the snack cake business for $410 million. Flowers Foods Inc. took most of the bread business, including the Wonder bread brand for $360 million. Neither of the sales attracted competitive bidding. After an auction with competitive bidding, Mexican baker Grupo Bimbo SAB was given a green light to buy the Beefsteak rye bread business for $31.9 million. JOURNAL REGISTER: Lists $825,000 Net Loss at March 31 ----------------------------------------------------- PULP FINISH 1, formerly Journal Register Company, et al., on April 30, 2013, filed its monthly operating report for the period from March 4, 2012 through March 31, 2013. The Debtor reported a net loss of $825,00 on total revenues of $20.89 million for the period ended March 31, 2013. As of March 31, 2013, Journal Register had total assets of $229.04 million, total liabilities of $267.12 million and total stockholders' deficit of $38.08 million. At the beginning of the period, Journal Register had $3.39 million in cash. Net cash from operating activities total $951,000 while net cash used for investing and financing activities total $671,000. As a result, Journal Register had total cash of $3.67 million at March 31. A full-text copy of the monthly operating report is available at: http://bankrupt.com/misc/JOURNAL_REGISTER_marchmor.pdf About Journal Register Journal Register Company -- http://www.JournalRegister.com/-- is the publisher of the New Haven Register and other papers in 10 states, including Philadelphia, Detroit and Cleveland, and in upstate New York. JRC is managed by Digital First Media and is affiliated with MediaNews Group, Inc., the nation's second largest newspaper company as measured by circulation. Journal Register, along with its affiliates, first filed for Chapter 11 bankruptcy protection (Bankr. S.D.N.Y. Case No. 09-10769) on Feb. 21, 2009. Attorneys at Willkie Farr & Gallagher LLP, served as counsel to the Debtors. Attorneys at Otterbourg, Steindler, Houston & Rosen, P.C., represented the official committee of unsecured creditors. Journal Register emerged from Chapter 11 protection under the terms of a pre-negotiated plan. Journal Register returned to bankruptcy (Bankr. S.D.N.Y. Lead Case No. 12-13774) on Sept. 5, 2012, to sell the business to 21st CMH Acquisition Co., an affiliate of funds managed by Alden Global Capital LLC. The deal is subject to higher and better offers. Journal Register exited the 2009 restructuring with $225 million in debt and with a legacy cost structure, which includes leases, defined benefit pensions and other liabilities that have become unsustainable and threatened the Company's efforts for a successful digital transformation. Journal Register managed to reduce the debt by 28% with the Company servicing in excess of $160 million of debt. Alden Global is the holder of two terms loans totaling $152.3 million. Alden Global acquired the stock and the term loans from lenders in Journal Register's prior bankruptcy. Journal Register disclosed total assets of $235 million and liabilities totaling $268.6 million as of July 29, 2012. This includes $13.2 million owing on a revolving credit to Wells Fargo Bank NA. Bankruptcy Judge Stuart M. Bernstein presides over the 2012 case. Neil E. Herman, Esq., Rachel Jaffe Mauceri, Esq., and Patrick D. Fleming, Esq., at Morgan, Lewis & Bockius, LLP; and Michael R. Nestor, Esq., Kenneth J. Enos, Esq., and Andrew L. Magaziner, Esq., at Young Conaway Stargatt & Taylor LLP, serve as the 2012 Debtors' counsel. SSG Capital Advisors, LLC, serves as financial advisors. American Legal Claims Services LLC acts as claims agent. The petition was signed by William Higginson, executive vice president of operations. Otterbourg, Steindler, Houston & Rosen, P.C., represents Wells Fargo. Akin, Gump, Strauss, Hauer & Feld LLP, represents the Debtors' Tranche A Lenders and Tranche B Lenders. Emmet, Marvin & Martin LLP, serves as counsel to Wells Fargo, in its capacity as Tranche A Agent and the Tranche B Agent. The Official Committee of Unsecured Creditors appointed in the case has retained Lowenstein Sandler PC as counsel and FTI Consulting, Inc. as financial advisor. LIGHTSQUARED INC: Lists $48.078 Million Net Loss in April --------------------------------------------------------- LightSquared Inc., et al., filed on May 15, 2013, a monthly operating report for the month ended April 30, 2013. The Company reported a net loss of $48.078 million on net revenue of $2.56 million for April. As of April 30, 2013, the Company had total assets of $3.85 billion, total liabilities of $2.67 billion, and total stockholders' equity of $1.18 billion. At the beginning of the month, LightSquared had $134.87 million in cash. The Company had total cash receipts of $17.68 million and total cash disbursements of $13.071 million. As a result, at the end of April, the Company had total cash of $139.48 million. A full-text copy of the monthly operating report is available at: http://is.gd/fBmbR1 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, 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. Lawyers at Milbank, Tweed, Hadley & McCloy LLP serve as counsel to the Debtors. Alvarez & Marsal North America, LLC, is the financial advisor. Kurtzman Carson Consultants LLC serves as claims and notice agent. MF GLOBAL: Has $797,647 Cash at April 30 ---------------------------------------- MF Global Holdings Ltd., et al., on May 15, 2013, filed a monthly operating report for the month ended April 30, 2013. The Company posted a net loss of $1.823 million for the month ended April 30, 2013. As of April 30, 2013, the Company had total assets of $3.53 billion, total liabilities of $3.78 billion, and total stockholders' deficit of $249.09 million. For the month of April, the Company had total cash inflows of $1.477 million from receipts and other items, and total cash outflows of $8.763 million which include payroll and rental expenses. A full-text copy of the monthly operating report is available at: http://is.gd/9WHx6u About MF Global New York-based MF Global -- http://www.mfglobal.com/-- was one of the world's leading brokers of commodities and listed derivatives. MF Global provides access to more than 70 exchanges around the world. The firm also was one of 22 primary dealers authorized to trade U.S. government securities with the Federal Reserve Bank of New York. MF Global's roots go back nearly 230 years to a sugar brokerage on the banks of the Thames River in London. On Oct. 31, 2011, MF Global Holdings Ltd. and MF Global Finance USA Inc. filed voluntary Chapter 11 petitions (Bankr. S.D.N.Y. Case Nos. 11-15059 and 11-5058), after a planned sale to Interactive Brokers Group collapsed. As of Sept. 30, 2011, MF Global had $41,046,594,000 in total assets and $39,683,915,000 in total liabilities. On Nov. 7, 2011, the United States Trustee appointed the statutory creditors' committee in the Debtors' cases. At the behest of the Statutory Creditor's Committee, the Court directed the U.S. Trustee to appoint a chapter 11 trustee. On Nov. 28, 2011, the Bankruptcy Court entered an order approving the appointment of Louis J. Freeh, Esq., of Freeh Group International Solutions, LLC, as Chapter 11 trustee. On Dec. 19, 2011, MF Global Capital LLC, MF Global Market Services LLC and MF Global FX Clear LLC filed voluntary Chapter 11 petitions (Bankr. S.D.N.Y. Case Nos. 11-15808, 11-15809 and 11-15810). On Dec. 27, the Court entered an order installing Mr. Freeh as Chapter 11 Trustee of the New Debtors. On March 2, 2012, MF Global Holdings USA Inc. filed a voluntary Chapter 11 petition (Bankr. S.D.N.Y. Case No. 12-10863), and Mr. Freeh also was installed as its Chapter 11 Trustee. Judge Honorable Martin Glenn presides over the Chapter 11 case. J. Gregory Milmoe, Esq., Kenneth S. Ziman, Esq., and J. Eric Ivester, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, serve as bankruptcy counsel. The Garden City Group, Inc., serves as claims and noticing agent. The petition was signed by Bradley I. Abelow, Executive Vice President and Chief Executive Officer of MF Global Finance USA Inc. The Chapter 11 Trustee has tapped (i) Freeh Sporkin & Sullivan LLP, as investigative counsel; (ii) FTI Consulting Inc., as restructuring advisors; (iii) Morrison & Foerster LLP, as bankruptcy counsel; and (iv) Pepper Hamilton as special counsel. The Official Committee of Unsecured Creditors has retained Capstone Advisory Group LLC as financial advisor, while lawyers at Proskauer Rose LLP serve as counsel. The Securities Investor Protection Corporation commenced liquidation proceedings against MF Global Inc. to protect customers. James W. Giddens was appointed as trustee pursuant to the Securities Investor Protection Act. He is a partner at Hughes Hubbard & Reed LLP in New York. Jon Corzine, the former New Jersey governor and co-CEO of Goldman Sachs Group Inc., stepped down as chairman and chief executive officer of MF Global just days after the bankruptcy filing. In April 2013, the Bankruptcy Court approved MF Global Holdings' plan to liquidate its assets. Bloomberg News reported that the court-approved disclosure statement initially told creditors with $1.134 billion in unsecured claims against the parent holding company why they could expect a recovery of 13.4% to 39.1% from the plan. As a consequence of a settlement with JPMorgan, supplemental materials informed unsecured creditors their recovery was reduced to the range of 11.4% to 34.4%. Bank lenders will have the same recovery on their $1.174 billion claim against the holding company. As a consequence of the settlement, the predicted recovery became 18% to 41.5% for holders of $1.19 billion in unsecured claims against the finance subsidiary, one of the companies under the umbrella of the holding company trustee. Previously, the predicted recovery was 14.7% to 34% on bank lenders' claims against the finance subsidiary. MONITOR COMPANY: Records $590,077 Net Loss for February ------------------------------------------------------- Monitor Company Group LP, et al., on May 30, 2013, filed its monthly operating report for the month ended Feb. 28, 2013. The Company posted an undistributed loss of $590,077 for February. As of Feb. 28, 2013, Monitor Company had total assets of $30.75 million and total undistributed stockholders' deficit of $78.82 million. For the month of February, Monitor Company had total cash inflows of $6.7 million and total cash disbursements of $9.47 million. The Company had total outflows of $9.47 million. A full-text copy of the monthly operating report is available at: http://bankrupt.com/misc/MONITOR_COMPANY_febmor.pdf About Monitor Company Monitor Company Group LP -- http://www.monitor.com/-- is a global consulting firm with 1,200 personnel in offices across 17 countries worldwide. Founded in 1983 by six entrepreneurs, and headquartered in Cambridge, Massachusetts, Monitor advises for- profit, sovereign, and non-profit clients on growing their businesses and economies and furthering their charitable purposes. Monitor and several affiliates filed for Chapter 11 bankruptcy (Bankr. D. Del. Case Nos. 12-13042 to 12-13062) on Nov. 7, 2012. Judge Hon. Christopher S. Sontchi presides over the case. Pepper Hamilton LLP and Ropes & Gray LLP serve as the Debtors' counsel. The financial advisor is Carl Marks Advisory Group LLC. Epiq Bankruptcy Solutions, LLC is the claims and noticing agent. The petitions were signed by Bansi Nagji, president. Cole, Schotz, Meisel, Forman & Leonard, P.A., represents the Committee of Unsecured Creditors as counsel. Bank of America is represented in the case by Jinsoo Kim, Esq., and Timothy Graulich, Esq., at Davis Polk & Wardwell LLP; and Mark D. Collins, Esq., at Richards Layton & Finger PA. J. Gregory Milmoe, Esq., and Shana A. Elberg, Esq., at Skadden Arps Slate Meagher & Flom LLP in New York; and Mark Chehi, Esq., and Christopher DiVirgilio, Esq., at Skadden Arps in Delaware, represent Deloitte Consulting LLP. Caltius Partners IV LP; Caltius Partners Executive IV, LP; and CP IV Pass-Through (Monitor) LP are represented by John Sieger, Esq., at Katten Muchin Rosenman LLP. Monitor's consolidated unaudited financial statements as of June 30, 2012, which include the assets and liabilities of non- Debtor foreign subsidiaries, reflected total assets of roughly $202 million (including $93 million in current assets) and total liabilities of roughly $200 million. Monitor filed for bankruptcy to sell substantially all of their businesses and assets to Deloitte Consulting LLP, a Delaware registered limited liability partnership and DCSH Limited, a UK company limited by shares, subject to higher or otherwise better offers. The base purchase price set forth in the Stalking Horse Agreement is $116.2 million, plus (i) assumption of certain liabilities and (ii) certain cure costs for assumed contracts. The Stalking Horse Agreement provides for the Stalking Horse Bidder to receive a combined breakup fee and expense reimbursement of $4 million. The Debtors held an auction on Nov. 28, 2012, at the offices of the Sellers' counsel, Ropes & Gray LLP in New York. In mid- January 2013, Judge Sontchi allowed the Debtors to sell its assets to Deloitte Consulting for $116.2 million. POWERWAVE TECHNOLOGIES: Has $8.65MM Net Loss for Pd. Ended March 3 ------------------------------------------------------------------ Powerwave Technologies Inc, on April 26, 2013, filed its monthly operating report for the period from Jan. 28 to March 3, 2013. The Debtor posted net loss of $8.65 million on total revenue of $576,000 for the month ended March 3, 2013. As of March 3, 2013, the Debtor had total assets of $832.43 million, total liabilities of $493.67 million and total stockholders' equity of $338.76 million. At Jan. 28, Powerwave Technologies had a cash balance of $2.92 million. For the reporting period, the Company had total receipts of $9.99 million and total disbursements of $9.13 million. As a result, at March 3, the Company had a total cash balance of $3.78 million. A full-text copy of the monthly operating report is available at: http://bankrupt.com/misc/POWERWAVE_TECHNOLOGIES_janmarchmor.pdf About Powerwave Technologies Powerwave Technologies Inc. (NASDAQ: PWAV) filed for Chapter 11 bankruptcy (Bankr. D. Del. Case No. 13-10134) on Jan. 28, 2013. Powerwave, headquartered in Santa Ana, Cal., is a global supplier of end-to-end wireless solutions for wireless communications networks. The Company has historically sold the majority of its product solutions to the commercial wireless infrastructure industry. The Company's balance sheet at Sept. 30, 2012, showed $213.45 million in total assets, $396.05 million in total liabilities, and a $182.59 million total shareholders' deficit. Aside from a $35 million secured debt to P-Wave Holdings LLC, the Debtor owes $150 million in principal under 3.875% convertible subordinated notes and $106 million in principal under 2.5% convertible senior subordinated notes where Deutsche Bank Trust Company Americas is the indenture trustee. In addition, as of the Petition Date, the Debtor estimates that between $15 and $25 million is outstanding to its vendors. The Debtor is represented by attorneys at Proskauer Rose LLP and Potter Anderson & Corroon LLP. Prepetition secured lender, P-Wave Holdings LLC, is represented by Martin A. Sosland, Esq., and Joseph H. Smolinsky, Esq., at Weil Gotshal & Manges LLP; and Mark D. Collins, Esq., and John H. Knight, Esq., at Richards Layton & Finger. The Official Committee of Unsecured Creditors has retained Sidley Austin LLP; Young Conaway Stargatt & Taylor LLP; and Zolfo Cooper, LLC. READERS' DIGEST: Reports $2.3-Mil. Net Loss in April ---------------------------------------------------- Bill Rochelle, the bankruptcy columnist for Bloomberg News, reports that Reader's Digest Association reported operating income of $1.4 million in April on revenue of $32.9 million. Reader's Digest disclosed a net loss of $61.1 million. Reorganization costs in the month were $2.3 million. Cash rose $7.4 million in April, to end the month at $73.2 million. About Reader's Digest Reader's Digest is a global media and direct marketing company that educates, entertains and connects consumers around the world with products and services from trusted brands. For more than 90 years, the flagship brand and the world's most read magazine, Reader's Digest, has simplified and enriched consumers' lives by discovering and expertly selecting the most interesting ideas, stories, experiences and products in health, home, family, food, finance and humor. RDA Holding Co. and 30 affiliates (Bankr. S.D.N.Y. Lead Case No. 13-22233) filed for Chapter 11 protection on Feb. 17, 2013, with an agreement with major stakeholders for a pre-negotiated chapter 11 restructuring. Under the plan, the Debtor will issue the new stock to holders of senior secured notes. RDA Holding Co. listed total assets of $1,118,400,000 and total liabilities of $1,184,500,000 as of the Petition Date. Weil, Gotshal & Manges LLP serves as bankruptcy counsel to the Debtors. Evercore Group LLC is the investment banker. Epiq Bankruptcy Solutions LLC is the claims and notice agent. Reader's Digest, together with its 47 affiliates, first sought Chapter 11 protection (Bankr. S.D.N.Y. Case No. 09-23529) Aug. 24, 2009 and exited bankruptcy Feb. 19, 2010. Under the Plan, holders of allowed general unsecured claims in such sub-class will receive their pro rata share of the GUC distribution; holders of allowed general unsecured claims of Reader's Digest will also receive their pro rata share of the RDA GUC distribution and the senior noteholder deficiency claims in such sub-class will be deemed waived solely for purposes of participating in the GUC distribution and the RDA GUC distribution. The Official Committee of Unsecured Creditors is represented by Otterbourg, Steindler, Houston & Rosen, P.C. The Committee tapped Alvarez & Marsal North America, LLC, as financial advisors. RG STEEL: WP Steel Ends April With $1.69 Million Cash ----------------------------------------------------- WP Steel Ventures, LLC, et al., on April 16, 2013, filed their monthly operating report for the month ended April 30, 2013. The Company posted a net loss of $3.853 million on total sales of $572,000 for April. Contributing to the net loss is $624 million in reorganization expenses. As of April 30, 2013, the Company had total assets of $266.45 million, total liabilities of $1.209 billion, and total stockholders' deficit of $942.54 million. For the month of April, the Company had total cash receipts of $7.86 million and total disbursements of $880,000. A full-text copy of the monthly operating report is available at: http://is.gd/xhA9C5 About RG Steel RG Steel LLC -- http://www.rg-steel.com/-- is the United States' fourth-largest flat-rolled steel producer with annual steelmaking capacity of 7.5 million tons. It was formed in March 2011 following the purchase of three steel facilities located in Sparrows Point, Maryland; Wheeling, West Virginia and Warren, Ohio, from entities related to Severstal US Holdings LLC. RG Steel also owns finishing facilities in Yorkville and Martins Ferry, Ohio. It also owned Wheeling Corrugating Company and has a 50% ownership in Mountain State Carbon and Ohio Coatings Company. RG Steel along with affiliates, including WP Steel Venture LLC, sought bankruptcy protection (Bankr. D. Del. Lead Case No. 12-11661) on May 31, 2012. Bankruptcy was precipitated by liquidity shortfall and a dispute with Mountain State Carbon, LLC, and a Severstal affiliate, that restricted the shipment of coke used in the steel production process. The Debtors estimated assets and debts in excess of $1 billion. As of the bankruptcy filing, the Debtors owe (i) $440 million, including $16.9 million in outstanding letters of credit, to senior lenders led by Wells Fargo Capital Finance, LLC, as administrative agent, (ii) $218.7 million to junior lenders, led by Cerberus Business Finance, LLC, as agent, (iii) $130.5 million on account of a subordinated promissory note issued by majority owner The Renco Group, Inc., and (iv) $100 million on a secured promissory note issued by Severstal. Judge Kevin J. Carey presides over the case. The Debtors are represented in the case by Robert J. Dehney, Esq., and Erin R. Fay, Esq., at Morris, Nichols, Arsht & Tunnell LLP, and Matthew A. Feldman, Esq., Shaunna D. Jones, Esq., Weston T. Eguchi, Esq., at Willkie Farr & Gallagher LLP, represent the Debtors. Conway MacKenzie, Inc., serves as the Debtors' financial advisor and The Seaport Group serves as lead investment banker. Donald MacKenzie of Conway MacKenzie, Inc., as CRO. Kurtzman Carson Consultants LLC is the claims and notice agent. Wells Fargo Capital Finance LLC, as Administrative Agent, is represented by Jonathan N. Helfat, Esq., and Daniel F. Fiorillo, Esq., at Otterbourg, Steindler, Houston & Rosen, P.C.; and Laura Davis Jones, Esq., and Timothy P. Cairns, Esq., at Pachuiski Stang Ziehi & Jones LLP. Renco Group is represented by lawyers at Cadwalader, Wickersham & Taft LLP. Kramer Levin Naftalis & Frankel LLP represents the Official Committee of Unsecured Creditors. Huron Consulting Services LLC serves as the Committee's financial advisor. The Debtor has sold off the principal plants. The sale of the Wheeling Corrugating division to Nucor Corp. brought in $7 million. That plant in Sparrows Point, Maryland, fetched the highest price, $72.5 million. CJ Betters Enterprises Inc. paid $16 million for the Ohio plant. THORNBURG MORTGAGE: Ends April With $27.68 Million in Cash ---------------------------------------------------------- TMST, Inc., f/k/a Thornburg Mortgage, Inc., on May 21, 2013, filed its monthly operating report for the period from April 1 to 30, 2013. TMST posted a net loss of $910,038 for the month ended April 30, 2013. As of April 30, 2013, TMST had total assets of $28.06 million, total liabilities of $3.36 billion, resulting in a stockholders' deficit of $3.33 billion. At the beginning of the month, TMST had $28.33 million in cash. The company had total cash receipts of $19,384 and total cash disbursements of $675,117. As a result, at the end of April, TMST had total cash of $27.68 million. A full-text copy of the monthly operating report is available at: http://bankrupt.com/misc/THORNBURG_MORTGAGE_aprilmorb.pdf About Thornburg Mortgage Based in Santa Fe, New Mexico, Thornburg Mortgage Inc. (NYSE: TMA) -- http://www.thornburgmortgage.com/-- was a single-family residential mortgage lender focused principally on prime and super-prime borrowers seeking jumbo and super-jumbo adjustable rate mortgages. It originated, acquired, and retained investments in adjustable and variable rate mortgage assets. Its ARM assets comprised of purchased ARM assets and ARM loans, including traditional ARM assets and hybrid ARM assets. Thornburg Mortgage and its four affiliates filed for Chapter 11 bankruptcy (Bankr. D. Md. Lead Case No. 09-17787) on May 1, 2009. Thornburg changed its name to TMST, Inc. Judge Duncan W. Keir is handling the case. David E. Rice, Esq., at Venable LLP, in Baltimore, Maryland, served as counsel to Thornburg Mortgage. Orrick, Herrington & Sutcliffe LLP served as special counsel. Jim Murray and David Hilty of Houlihan Lokey Howard & Zukin Capital, Inc., served as investment banker and financial advisor. Protiviti Inc. served as financial advisory services. KPMG LLP served as the tax consultant. Epiq Systems, Inc., serves claims and noticing agent. Thornburg disclosed total assets of $24.4 billion and total debts of $24.7 billion, as of Jan. 31, 2009. On Oct. 28, 2009, the Court approved the appointment of Joel I. Sher as the Chapter 11 Trustee for the Company, TMST Acquisition Subsidiary, Inc., TMST Home Loans, Inc., and TMST Hedging Strategies, Inc. He is represented by his firm, Shapiro Sher Guinot & Sandler. ********* 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. 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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., Washington, D.C., USA. Jhonas Dampog, Marites Claro, Joy Agravante, Rousel Elaine Tumanda, Howard C. Tolentino, 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 2013. All rights reserved. ISSN: 1520-9474. 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