/raid1/www/Hosts/bankrupt/TCR

/raid1/www/Hosts/bankrupt/TCR_Public/140118.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 18, 2014, Vol. 18, No. 17 Headlines FISKER AUTOMOTIVE: Projects $8.18MM in Total Receipts Thru Feb. 10 FRESH & EASY: Cash Balance Drops to $40.88-Mil. at Nov. 24 GLOBAL AVIATION: Has Negative Cash Balance of $28,793 at Nov. 30 GOLDKING HOLDINGS: Files Initial Operating Report GOLDKING HOLDINGS: Incurs $828,267 Net loss in November LANDAUER HEALTHCARE: Lists $3.15 Mil. Net Loss in November LIGHTSQUARED INC: Lists $55.7 Million Net Loss in December MSD PERFORMANCE: Ends November with $1.34 Mil. Net Loss NORTEL NETWORKS: Ends August with $879.70 Million Cash ORCHARD SUPPLY: Posts $19.90 Million Cash at Nov. 2 RG STEEL: Incurs $74.019 Million Net Loss in December RIH ACQUISITIONS: Projects a $2.5MM Ending Cash Balance at Jan. 31 SPECIALTY PRODUCTS: Net Loss Increases to $1.29-Mil. in November VERTIS HOLDINGS: Ends November with $8.2-Mil. Cash Balance ********* FISKER AUTOMOTIVE: Projects $8.18MM in Total Receipts Thru Feb. 10 ------------------------------------------------------------------ Fisker Automotive, Inc., et al., filed an initial monthly operating report on Dec. 10, 2013. The Initial MOR includes a cash flow projection for the 12-week period covering the week ended Nov. 26, 2013 through the week ended Feb. 10, 2014. The Debtors project operating receipts to total $8.18 million and operating disbursements to total $3.35 million for the same 12- week period. The disbursements include $787,332 in payroll expenses. Restructuring expenses are also pegged at $4.81 million. The Initital MOR also include a list of bankruptcy professionals, among which are Huron Consulting Group, Kirkland & Ellis, and Pachulski Stang Ziehl & Jones LLP. A copy of the monthly operating report is available at: http://bankrupt.com/misc/FISKERAUTOMOTIVEmor.pdf About Fisker Automotive Fisker Automotive Holdings, Inc., developer of the Karma plug-in hybrid electric sedan, filed a petition for Chapter 11 protection (Bankr. D. Del. Case No. 13-13087) on Nov. 22, 2013, with plans to sell the business to Hybrid Tech Holdings, LLC. Fisker estimated assets of more than $100 million and listed debt of $500 million in its bankruptcy petition. The assets include an assembly plant purchased for $21 million from General Motors Corp. The plant never operated. The cars were assembled in Finland. Fisker now has 21 employees. Fisker received a $529 million loan from the Department of Energy's Advanced Technology Vehicles Manufacturing Loan Program and drew down about $192 million before the department froze the loan after Fisker failed to hit several development targets. The company defaulted on its loan in April 2013. Bankruptcy Judge Kevin Gross presides over the case. The Debtors have tapped James H.M. Sprayregen, P.C., Esq., Anup Sathy, P.C., Esq., and Ryan Preston Dahl, Esq., at Kirkland & Ellis LLP, in Chicago, Illinois, as co-counsel; Laura Davis Jones, Esq., James E. O'Neill, Esq., and Peter J. Keane, Esq., at Pachulski Stang Ziehl & Jones LLP, in Wilmington, Delaware, as co-counsel; Beilinson Advisory Group as restructuring advisors; and Rust Consulting/Omni Bankruptcy, as notice and claims agent and administrative advisor. On Nov. 5, 2013, the Official Committee of Unsecured Creditors was appointed. The members are: (a) David M. Cohen; (b) Sven Etzelsberger; (c) Kuster Automotive Door Systems GmbH; (d) Magna E-Car USA, LLC; (e) Supercars & More SRL; and (f) TK Holdings Inc. The Committee is represented by William R. Baldiga, Esq., and Sunni P. Beville, Esq., at Brown Rudnick LLP; and Mark Minuti, Esq., at Saul Ewing LLP. The Debtors have entered into an asset purchase agreement with Hybrid for the sale of substantially all of its assets. Hybrid is represented by Tobias Keller, Esq., and Peter Benvenutti, Esq., at Keller & Benvenutti LLP, in San Francisco, California. FRESH & EASY: Cash Balance Drops to $40.88-Mil. at Nov. 24 ---------------------------------------------------------- Fresh & Easy Neighborhood Market Inc., and its affiliates, on Dec. 20, 2013, filed their monthly operating report for the period from October 28 to November 24, 2013. The Debtors reported a net loss of $6,386 on net sales of $70,113 for the reporting period. At November 24, the Debtors posted $262.88 million in total assets, $1.04 billion in total liabilities, and -($781.38 million) in total shareholders' deficit. The Debtors had a beginning cash balance of $73.14 million. They reported total cash receipts of $70.85 million and total cash disbursements of $103.11 million. The Debtors paid $306,773 in professional fees. As a result, at month end, the Debtors had $40.88 million cash. A copy of the monthly operating report is available at: http://bankrupt.com/misc/FRESH&EASYoct-novmor.pdf About Fresh & Easy Neighborhood Fresh & Easy Neighborhood Market Inc., and its affiliate filed Chapter 11 petitions (Bankr. D. Del. Case Nos. 13-12569 and 13-12570) on Sept. 30, 2013. The petitions were signed by James Dibbo, chief financial officer. Judge Kevin J. Carey presides over the case. Fresh & Easy owes $738 million to Cheshunt, England-based Tesco, the U.K.'s biggest retailer. Fresh & Easy never made a profit and lost an average of $22 million a month in the 12 months ended in February, according to court papers. Jones Day serves as lead bankruptcy counsel. Richards, Layton & Finger, P.A., serves as local Delaware counsel. Alvarez & Marsal North America, LLC, serves as financial advisors, and Alvarez & Marsal Securities, LLC, serves as investment banker. Prime Clerk LLC acts as the Debtors' claims and noticing agent. Gordon Brothers Group, LLC, and Tiger Capital Group, LLC, serves as the Debtors' consultant. The Debtors estimated assets of at least $100 million and liabilities of at least $500 million. Roberta A. DeAngelis, U.S. Trustee for Region 3, appointed five creditors to serve in the Official Committee of Unsecured Creditors in the Chapter 11 cases of Fresh & Easy Neighborhood Market Inc., et al. Pachulski Stang Ziehi & Jones LLP serves as counsel to the Committee. FTI Consulting, Inc. serves as its financial advisor. The Debtors closed, on or about Nov. 26, 2013, the sale of about 150 supermarkets plus a production facility in Riverside, Califorinia, to Ron Buckle's Yucaipa Cos. Pursuant to the sale terms, the bankruptcy company changed its name, and the name of the case, to Old FENM Inc. GLOBAL AVIATION: Has Negative Cash Balance of $28,793 at Nov. 30 ---------------------------------------------------------------- Global Aviation Holdings, Inc., et al., on Jan. 3, 2014, filed their monthly operating report for the period from November 12 to November 30, 2013. The Debtors' statement of operations didn't record a profit or loss on net revenues of $769,676 for the period. At November 30, the Debtors had $486.05 million in total assets, $335.32 million in total liabilities, and a $150.73 million total shareholders' equity. At November 12, the Debtors had a negative cash balance of $6,265. They had total receipts of $1.93 million and total disbursements of $1.96 million. At the end of the month, the Debtor had a negative cash balance of $28,793. A full-text copy of the monthly operating report is available at: http://bankrupt.com/misc/GLOBALAVIATIONnovmor.pdf About Global Aviation Holdings Global Aviation Holdings Inc. -- http://www.glah.com-- the parent company of North American Airlines and World Airways, sought Chapter 11 bankruptcy protection on Nov. 12, 2013. North American Airlines, founded in 1989, operates passenger charter flights using B767-300ER aircraft. Founded in 1948, World Airways -- http://www.woa.com-- operates cargo and passenger charter flights using B747-400 and MD-11 aircraft. The parent of World Airways Inc. and North American Airlines Inc. implemented a prior Chapter 11 reorganization in February 2013. The new case is In re Global Aviation Holdings Inc., 13-12945, U.S. Bankruptcy Court, District of Delaware (Wilmington). The prior case was In re Global Aviation Holdings Inc., 12-bk-40783, U.S. Bankruptcy Court, Eastern District New York (Brooklyn). Peachtree City, Georgia-based Global blamed the new bankruptcy on decreased flying for the government that reduced revenue for the first nine months of this year to $354 million from $486 million in the same period of 2012. The 2013 petition shows assets and debt both exceeding $500 million. In the first bankruptcy, Global listed $589.8 million in assets and debt of $493.2 million. In the 2013 case, the Debtors are represented by Kourtney Lyda, Esq., at Haynes and Boone, LLP, in Houston, Texas; and Christopher A. Ward, Esq., at Polsinelli PC, in Wilmington, Delaware. The first lien agent is represented by Michael L. Tuchin, Esq., at Klee, Tuchin, Bogdanoff & Stern LLP, in Los Angeles, California. Wells Fargo Bank, National Association, agent to the second lienholders and third lienholders, is represented by Mildred Quinones-Holmes, Esq., at Thompson Hines LLP, in New York. A three-member panel has been appointed as official creditors committee in the Debtors' cases, comprising of Israel Aeorspace Industries, Ltd., Unical Aviation, Inc., and Air Line Pilots Association, International. GOLDKING HOLDINGS: Files Initial Operating Report ------------------------------------------------- Goldking Holdings, LLC, et al., filed on Nov. 14, 2013, an initial monthly operating report. The Initial MOR includes a projected cash collateral budget for the period covering the week ended Nov. 1, 2013 through the week ended Feb. 28, 2014. The Debtors project cash inflow to total $715,000 and operating cash outflow to total $117,000 by Feb. 21, 2014. The Initial MOR also include a schedule of retainers paid to professionals. Among the Debtors' bankruptcy professionals are Young Conaway Stargatt & Taylor, LLP and Epiq Bankruptcy Solutions, LLC. A copy of the monthly operating report is available at: http://bankrupt.com/misc/GOLDKINGHOLDINGSmor.pdf About Goldking Holdings Goldking Holdings LLC, an oil-and-gas exploration company based in Houston, sought bankruptcy protection (Bankr. D. Del. Case No. 13-12820) in Wilmington, Delaware, on Oct. 30, 2013, from creditors with plans to sell virtually all its assets. Goldking Onshore Operating, LLC, and Goldking Resources, LLC, also sought creditor protection. The cases were initially assigned to Delaware Judge Brendan Linehan Shannon. On Nov. 20, 2013, Judge Shannon granted the request of Goldking's former CEO Leonard C. Tallerine Jr. to move the Chapter 11 case to Houston, Texas (Bankr. S.D. Tex. Case No. 13-37200). Mr. Tallerine owns a nearly 6% stake in the company through an entity called Goldking LT Capital Corp. The Debtors' are represented by Scott W. Everett, Esq., and Christopher L. Castillo, Esq., at Haynes And Boone, LLP. Robert S. Brady, Esq., at Young, Conaway, Stargatt & Taylor, LLP, in Wilmington, Delaware, serves as the Debtors' co-counsel. Lantana Oil & Gas Partners serves as the Debtors' financial advisors. The Debtors' notice, claims, solicitation and balloting agent is Epiq Bankruptcy Solutions, LLC. In December 2013, the Debtors won Court approval to employ E-Spectrum Advisors LLC, led by its CEO Coy Gallatin, as asset sale advisor. An official committee of unsecured creditors has not yet been appointed in these cases by the Office of the United States Trustee. GOLDKING HOLDINGS: Incurs $828,267 Net loss in November ------------------------------------------------------- Goldking Holdings, et al, filed on Dec. 26, 2013, their monthly operating report for November 2013. The Debtors incurred $828,267 in net losses on revenues of $696,081 for the month. At November 30, the Debtors posted $62.21 million in total assets, $22.11 million in total liabilities, and a $40.10 million total shareholders' equity. At the beginning of the month, the Debtors had a cash balance of $69,616. They reported $2.97 million in total receipts and $1.44 million in total disbursements. Thus, at the end of November, the Debtors had $1.60 million cash. A copy of the monthly operating report is available at: http://bankrupt.com/misc/GOLDKINGHOLDINGSnovmor.pdf About Goldking Holdings Goldking Holdings LLC, an oil-and-gas exploration company based in Houston, sought bankruptcy protection (Bankr. D. Del. Case No. 13-12820) in Wilmington, Delaware, on Oct. 30, 2013, from creditors with plans to sell virtually all its assets. Goldking Onshore Operating, LLC, and Goldking Resources, LLC, also sought creditor protection. The cases were initially assigned to Delaware Judge Brendan Linehan Shannon. On Nov. 20, 2013, Judge Shannon granted the request of Goldking's former CEO Leonard C. Tallerine Jr. to move the Chapter 11 case to Houston, Texas (Bankr. S.D. Tex. Case No. 13-37200). Mr. Tallerine owns a nearly 6% stake in the company through an entity called Goldking LT Capital Corp. The Debtors' are represented by Scott W. Everett, Esq., and Christopher L. Castillo, Esq., at Haynes And Boone, LLP. Robert S. Brady, Esq., at Young, Conaway, Stargatt & Taylor, LLP, in Wilmington, Delaware, serves as the Debtors' co-counsel. Lantana Oil & Gas Partners serves as the Debtors' financial advisors. The Debtors' notice, claims, solicitation and balloting agent is Epiq Bankruptcy Solutions, LLC. In December 2013, the Debtors won Court approval to employ E-Spectrum Advisors LLC, led by its CEO Coy Gallatin, as asset sale advisor. An official committee of unsecured creditors has not yet been appointed in these cases by the Office of the United States Trustee. LANDAUER HEALTHCARE: Lists $3.15 Mil. Net Loss in November ---------------------------------------------------------- Landauer Healthcare Holdings, Inc., et al., on Dec. 31, 2013, filed their monthly operating report for November 2013. The Debtors' consolidated income statement showed a net loss of $3.15 million on $6.76 million total net revenues for the month. At November 30, the Debtors posted $60.82 million in total assets, $48.42 million in total liabilities, and a $12.40 million total shareholders' equity. At the beginning of the month, the Debtors had a cash balance of $3.28 million. They reported $15.53 million in total receipts and $16.63 million in total disbursement. As a result, at the end of the month, the Debtors had $2.19 million cash. A copy of the monthly operating report is available at: http://bankrupt.com/misc/LANDAUERHEALTHCAREnovmor.pdf About Landauer Healthcare Home medical equipment provider Landauer Healthcare Holdings, Inc., sought Chapter 11 protection (Bankr. D. Del. Lead Case No. 13-12098) on Aug. 16, 2013, with a deal to sell all assets to Quadrant Management Inc. for $22 million, absent higher and better offers. The Company has 32 operating locations, with 50% of inventory concentrated in Mount Vernon, New York; Great Neck, New York; Warwick, Rhode Island; and Philadelphia, Pennsylvania. Landauer, which derives revenues by reimbursement from insurers, Medicare and Medicaid, reported net revenues of $128.5 million in fiscal year ended March 31, 2013. Landauer disclosed $2,978,495 in assets and $53,636,751 in liabilities as of the Chapter 11 filing. Michael R. Nestor, Esq., Matthew B. Lunn, Esq., and Justin H. Rucki, Esq., at Young Conaway Stargatt & Taylor, LLP; and John A. Bicks, Esq., Charles A. Dale III, Esq., and Mackenzie L. Shea, Esq., at K&L Gates LLP, serve as the Debtor's counsel. Carl Marks Advisory Group serves as the Debtor's financial advisors, and Epiq Systems as claims and notice agent. Maillie LLP serves as the Debtors' tax accountants. The Debtor filed a Chapter 11 restructuring plan that would transfer ownership of the home medical supply company to Quadrant Management Inc., whose $22 million bid for the company went unchallenged. Roberta A. DeAngelis, the U.S. Trustee for Region 3, appointed five members to the official committee of unsecured creditors in the Chapter 11 cases. The Committee retained Landis Rath & Cobb LLP as counsel. Deloitte Financial Advisory Services LLP serves as its financial advisor. LIGHTSQUARED INC: Lists $55.7 Million Net Loss in December ---------------------------------------------------------- LightSquared Inc., et al., filed on January 15, 2014, a monthly operating report for the month ended December 31, 2013. The Company reported a net loss of $55.7 million on net revenue of $1.54 million for December. As of December 31, 2013, the Company had total assets of $3.68 billion, total liabilities of $2.94 billion, and total stockholders' equity of $735.3 million. At the beginning of the month, LightSquared had $47.4 million in cash. The Company had total cash receipts of $4.48 million and total cash disbursements of $18.7 million. As a result, at the end of December, the Company had total cash of $33.2 million. A full-text copy of the monthly operating report is available at: http://is.gd/PtbVPj 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. MSD PERFORMANCE: Ends November with $1.34 Mil. Net Loss ------------------------------------------------------- MSD Performance, Inc., et al., on Dec. 31, 2013, filed their monthly operating report for November 2013 The Debtors' consolidated statement of operations showed a net loss of $1.34 million on $4.95 million net sales for the month. At November 30, the Debtors posted $55.75 million in total assets, $105.94 million in total liabilities, and a -($50.19 million) total shareholders' deficit. At the beginning of the month, the Debtors had a cash balance of $5.08 million. They reported $6.92 million in total receipts and $7.45 million in total disbursement. The Debtors paid $15,534 in professional fees. Thus, at month end, the Debtors had $4.55 million cash. A copy of the monthly operating report is available at: http://bankrupt.com/misc/MSDPERFORMANCEnovmor.pdf About MSD Performance MSD Performance, Inc., headquartered in El Paso, Texas, operates in the power sports enthusiast and professional racer markets where the company maintains leading market share positions across all of its product categories under the MSD Ignition(R), Racepak(R) and Powerteq(R) brands. The company's facilities encompass over 220,000 square feet in six buildings, five of which are located across the U.S. and one in Shanghai, China. MSD Performance and its U.S. affiliates sought Chapter 11 protection (Bankr. D. Del. Lead Case No. 13-12286) on Sept. 6, 2013. Ron Turcotte signed the petitions as CEO. The Debtors disclosed $30,305,656 in assets and $129,242,63 is liabilities as of the Chapter 11 filing. The Debtors' restructuring counsel is Jones Day. Their investment banker is SSG Advisors, LLC. The Debtors are also represented by Richards Layton and Finger, as local counsel. Logan & Co. is the claims and notice agent. The Official Committee of Unsecured Creditors appointed in the case retained Blank Rome LLP as counsel, and Carl Marks Advisory Group LLC as financial advisors. NORTEL NETWORKS: Ends August with $879.70 Million Cash ------------------------------------------------------ Nortel Networks Inc., et. al., on Jan. 7, 2014, filed their monthly operating report for August 2013. At August 31, Nortel Networks Inc. posted $1.13 billion in total assets, $5.38 billion in total liabilities, and -($4.25 billion) total shareholders' deficit. The Other Debtors had $88 million in total assets, 1.63 billion in total liabilities, and -($75.2 million). At the beginning of the month, NNI had a cash balance of $889.70 million. It $4.6 million in total receipts and $14.6 million in total disbursement. At the end of the month, NNI had $879.70 million cash. No statement of operations was filed with the MOR. A copy of the monthly operating report is available at: http://bankrupt.com/misc/NORTELNETWORKSaugmor.pdf About Nortel Networks Headquartered in Ontario, Canada, Nortel Networks Corporation and its various affiliated entities provided next-generation technologies, for both service provider and enterprise networks, support multimedia and business-critical applications. Nortel did business in more than 150 countries around the world. Nortel Networks Limited was the principal direct operating subsidiary of Nortel Networks Corporation. On Jan. 14, 2009, Nortel Networks Inc.'s ultimate corporate parent Nortel Networks Corporation, NNI's direct corporate parent Nortel Networks Limited and certain of their Canadian affiliates commenced a proceeding with the Ontario Superior Court of Justice under the Companies' Creditors Arrangement Act (Canada) seeking relief from their creditors. Ernst & Young was appointed to serve as monitor and foreign representative of the Canadian Nortel Group. That same day, the Monitor sought recognition of the CCAA Proceedings in U.S. Bankruptcy Court (Bankr. D. Del. Case No. 09-10164) under Chapter 15 of the U.S. Bankruptcy Code. That same day, NNI and certain of its affiliated U.S. entities filed voluntary petitions for relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Del. Case No. 09-10138). In addition, the High Court of England and Wales placed 19 of NNI's European affiliates into administration under the control of individuals from Ernst & Young LLP. Other Nortel affiliates have commenced and in the future may commence additional creditor protection, insolvency and dissolution proceedings around the world. On May 28, 2009, at the request of administrators, the Commercial Court of Versailles, France, ordered the commencement of secondary proceedings in respect of Nortel Networks S.A. On June 8, 2009, Nortel Networks UK Limited filed petitions in U.S. Bankruptcy Court for recognition of the English Proceedings as foreign main proceedings under Chapter 15. U.S. Bankruptcy Judge Kevin Gross presides over the Chapter 11 and 15 cases. Mary Caloway, Esq., and Peter James Duhig, Esq., at Buchanan Ingersoll & Rooney PC, in Wilmington, Delaware, serves as Chapter 15 petitioner's counsel. In the Chapter 11 case, James L. Bromley, Esq., at Cleary Gottlieb Steen & Hamilton, LLP, in New York, serves as the U.S. Debtors' general bankruptcy counsel; Derek C. Abbott, Esq., at Morris Nichols Arsht & Tunnell LLP, in Wilmington, serves as Delaware counsel. The Chapter 11 Debtors' other professionals are Lazard Freres & Co. LLC as financial advisors; and Epiq Bankruptcy Solutions LLC as claims and notice agent. The United States Trustee appointed an Official Committee of Unsecured Creditors in respect of the U.S. Debtors. An ad hoc group of bondholders also was organized. Fred S. Hodara, Esq., at Akin Gump Strauss Hauer & Feld LLP, in New York, and Christopher M. Samis, Esq., at Richards, Layton & Finger, P.A., in Wilmington, Delaware, represent the Official Committee of Unsecured Creditors. An Official Committee of Retired Employees and the Official Committee of Long-Term Disability Participants tapped Alvarez & Marsal Healthcare Industry Group as financial advisor. The Retiree Committee is represented by McCarter & English LLP as Delaware counsel, and Togut Segal & Segal serves as the Retiree Committee. The Committee retained Alvarez & Marsal Healthcare Industry Group as financial advisor, and Kurtzman Carson Consultants LLC as its communications agent. Several entities, particularly, Nortel Government Solutions Incorporated and Nortel Networks (CALA) Inc., have material operations and are not part of the bankruptcy proceedings. As of Sept. 30, 2008, Nortel Networks Corp. reported consolidated assets of $11.6 billion and consolidated liabilities of $11.8 billion. The Nortel Companies' U.S. businesses are primarily conducted through Nortel Networks Inc., which is the parent of majority of the U.S. Nortel Companies. As of Sept. 30, 2008, NNI had assets of about $9 billion and liabilities of $3.2 billion, which do not include NNI's guarantee of some or all of the Nortel Companies' about $4.2 billion of unsecured public debt. Since the commencement of the various insolvency proceedings, Nortel has sold its business units and other assets to various purchasers. Nortel has collected roughly $9 billion for distribution to creditors. Of the total, $4.5 billion came from the sale of Nortel's patent portfolio to Rockstar Bidco, a consortium consisting of Apple Inc., EMC Corporation, Telefonaktiebolaget LM Ericsson, Microsoft Corp., Research In Motion Limited, and Sony Corporation. The consortium defeated a $900 million stalking horse bid by Google Inc. at an auction. The deal closed in July 2011. Nortel has filed a proposed plan of liquidation in the U.S. Bankruptcy Court. The Plan generally provides for full payment on secured claims with other distributions going in accordance with the priorities in bankruptcy law. Judge Gross and the court in Canada scheduled trials in 2014 on how to divide proceeds among creditors in the U.S., Canada, and Europe. ORCHARD SUPPLY: Posts $19.90 Million Cash at Nov. 2 --------------------------------------------------- OSH 1 Liquidating Corporation, fka Orchard Supply Hardware Stores Corporation, et al., on Jan. 7, 2014, filed their monthly operating report for the period from Oct. 6 through Nov. 2, 2013. At October 6, the Debtors had a cash balance of $22.54 million. They recorded $4.38 million in total receipts and $7.02 million in total disbursement. The Debtors paid $1.48 million in professional fees. At November 2, the Debtors had $19.90 million cash. The monthly operating report did not contain a Statement of Operations nor an updated Balance Sheet for the period. A copy of the monthly operating report is available at: http://bankrupt.com/misc/ORCHARDSUPPLYoct-novmor.pdf About Orchard Supply San Jose, Cal.-based Orchard Supply Hardware Stores Corporation operates neighborhood hardware and garden stores focused on paint, repair and the backyard. It was spun off from Sears Holdings Corp. in 2012. Orchard Supply and two affiliates sought Chapter 11 protection (Bankr. D. Del. Lead Case No. 13-11565) on June 16 to facilitate a restructuring of the company's balance sheet and a sale of its assets for $205 million in cash to Lowe's Companies, Inc., absent higher and better offers. In addition to the $205 million cash, Lowe's has agreed to assume payables owed to nearly all of Orchard's supplier partners. Bankruptcy Judge Christopher S. Sontchi oversees the case. Michael W. Fox signed the petitions as senior vice president and general counsel. The Debtors disclosed total assets of $441,028,000 and total debts of $480,144,000. Stuart M. Brown, Esq., at DLA Piper LLP (US), in Wilmington, Delaware; and Richard A. Chesley, Esq., Chun I. Jang, Esq., and Daniel M. Simon, Esq., at DLA Piper LLP (US), in Chicago, Illinois, are the Debtors' counsel. Moelis & Company LLC serves as the Debtors' investment banker. FTI Consulting, Inc., serves as the Debtors' financial advisors. A&G Realty Partners, LLC, serves as the Debtors' real estate advisors. BMC Group Inc. is the Debtors' claims and noticing agent. The Official Committee of Unsecured Creditors appointed in case has retained Pachulski Stang Ziehl & Jones LLP as counsel, and Alvarez & Marsal as financial advisors. Lowe's Cos. completed the $205 million acquisition of 72 of Orchard Supply's 91 stores. The Company changed its name to OSH 1 Liquidating Corporation and reduced reduce the size and simplified the structure of the Board of Directors effective as of Aug. 20, 2013. RG STEEL: Incurs $74.019 Million Net Loss in December ----------------------------------------------------- WP Steel Ventures, LLC, et al., on January 15, 2014, filed their monthly operating report for the month ended December 31, 2013. The Company posted a net loss of $74.019 million for December on zero revenues. As of December 31, 2013, the Company had total assets of $176.888 million, total liabilities of $ 1.22 billion, and total stockholders' deficit of -($1.043 billion). For the month of December, the Company had total cash receipts of $1.243 million and total disbursements of $626,000. A full-text copy of the monthly operating report is available at: http://is.gd/lgA3de 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. RIH ACQUISITIONS: Projects a $2.5MM Ending Cash Balance at Jan. 31 ----------------------------------------------------------------- RIH Acquisitions NJ, LLC, filed an initial monthly operating report on Dec. 27, 2013. The Initial MOR includes a cash flow projection for the 3-month period from November 2013 to January 2014. For January, the Debtors forecast a beginning cash balance of $5.22 million. They project receipts to $7.73 million and disbursements to total $10.40 million for the period for the month. A big chunk of the disbursements include expenses for salaries, taxes and fees, and utilities. Thus, at the end of January, the Debtors project a cash balance of $2.56 million. The Initial MOR also include a schedule of retainers paid to professionals in November. Among the Debtors' bankruptcy professionals are Willkie, Farr & Gallagher, LLP and Cole, Schotz, Meisel, Forman & Leonard, P.A. A copy of the monthly operating report is available at: http://bankrupt.com/misc/RIHACQUISITIONSmor.pdf About RIH Acquisitions RIH Acquisitions NJ LLC, doing business as the Atlantic Club Casino Hotel in Atlantic City, New Jersey, filed a Chapter 11 petition (Bankr. D.N.J. Case No. 13-34483) on Nov. 6, 2013, in Camden, New Jersey, to sell the property in the near term. The Debtors are represented by Michael D. Sirota, Esq., and Warren A. Ustaine, Esq., at Cole, Schotz, Meisel, Forman & Leonard, P.A., in Hackensack, New Jersey; and Paul V. Shalhoub, Esq., at Willkie Farr & Gallagher LLP, in New York. Duane Morris, LLP, serves as the Debtors' special gaming regulatory counsel. Imperial Capital, LLC, serves as financial advisor and investment banker to the Debtors, while Mercer (US) Inc. serves as compensation consultant. Kurtzman Carson Consultants LLC is the Debtors' claims and noticing agent. Northlight Financial LLC, as DIP Lender, is represented by Harlan W. Robins, Esq., at Dickinson Wright PLLC, in Columbus, Ohio; Kristi A. Katsma, Esq., at Dickinson Wright PLLC, in Detroit, Michigan; and Bruce Buechler, Esq., and Kenneth A. Rosen, Esq., at Lowenstein Sandler LLP, in Roseland, New Jersey. Financing for the Chapter 11 reorganization is being provided by Northlight Financial LLC. An official committee of unsecured creditors appointed in the case is represented by Morton R. Branzburg, Esq., Carol Ann Slocum, Esq., and Richard M. Beck, Esq., at Klehr Harrison Harvey Branzburg LLP. The Committee hired PricewaterhouseCoopers, LLC, as financial advisor. RIH Acquisitions NJ LLC scheduled $17,776,359 in total assets and $16,813,022 in total liabilities. On Dec. 23, 2013, Judge Gloria M. Burns approved the sale of Atlantic Club Casino Hotel's casino property and fixtures to Caesars Entertainment Corp. for $15 million; and the slot machines and other gambling equipment to Tropicana Entertainment Inc. for $8.4 million. SPECIALTY PRODUCTS: Net Loss Increases to $1.29-Mil. in November ---------------------------------------------------------------- Specialty Products Holding Corp., on Dec. 18, 2013, filed its monthly operating report for November 2013. The Debtor posted a net loss of $1.29 million on zero net revenue in November, an increase of about $300,000 from the previous month's $950,481 net loss. At November 30, the Debtor reported $425,198,405 in total assets, $14,353,881 in total liabilities, and $198,391,659 in total shareholders' deficit. At the beginning of the month, the Debtor had $9.17 million cash. The Debtor reported total cash receipts of $33.73 million and total cash disbursements of $27.55 million. At month end, the Debtor had $15.34 million cash. A copy of the monthly operating report is available at: http://bankrupt.com/misc/SPECIALTYPRODUCTSnovmor.pdf About Specialty Products Cleveland, Ohio-based Specialty Products Holdings Corp., aka RPM, Inc., is a wholly owned subsidiary of RPM International Inc. The Company is the holding company parent of Bondex International, Inc., and the direct or indirect parent of certain additional domestic and foreign subsidiaries. The Company claims to be a leading manufacturer, distributor and seller of various specialty chemical product lines, including exterior insulating finishing systems, powder coatings, fluorescent colorants and pigments, cleaning and protection products, fuel additives, wood treatments and coatings and sealants, in both the industrial and consumer markets. The Company filed for Chapter 11 bankruptcy protection (Bankr. D. Del. Case No. 10-11780) on May 31, 2010. Gregory M. Gordon, Esq., Dan B. Prieto, Esq., and Robert J. Jud, Esq., at Jones Day, serve as bankruptcy counsel. Daniel J. DeFranceschi, Esq., and Zachary I. Shapiro, Esq., at Richards Layton & Finger, serve as co- counsel. Logan and Company is the Company's claims and notice agent. The Company estimated its assets and debts at $100 million to $500 million. The Company's affiliate, Bondex International, Inc., filed a separate Chapter 11 petition on May 31, 2010 (Case No. 10-11779), estimating its assets and debts at $100 million to $500 million. On May 20, 2013, the Bankruptcy Court entered an order estimating the amount of the Debtors' asbestos liabilities, and a related memorandum opinion in support of the estimation order. The Bankruptcy Court estimated the current and future asbestos claims associated with Bondex International, Inc. and Specialty Products Holding at approximately $1.17 billion. The estimation hearing represents one step in the legal process in helping to determine the amount of potential funding for a 524(g) asbestos trust. VERTIS HOLDINGS: Ends November with $8.2-Mil. Cash Balance ---------------------------------------------------------- Vertis Holdings, Inc., at al., on Dec. 23 2013, filed their monthly operating report for November 2013. The Debtors' consolidated statement of operations showed a net profit of $4.07 million on zero revenues for the month. At November 30, the Debtors recorded $43.45 million in total assets, $513.67 million in total liabilities, and a $470.22 million total shareholders' deficit. The Debtors had a beginning cash balance of $8.57 million. They reported total cash receipts of $284,753 and total cash disbursements of $541,543. The Debtors paid $471,806 in professional fees. Thus, at the end of the month, the Debtors had a cash balance of $8.32 million. A copy of the monthly operating report is available at: http://bankrupt.com/misc/VERTISHOLDINGSnovmor.pdf About Vertis Holdings Vertis Holdings Inc. -- http://www.thefuturevertis.com/-- provides advertising services in a variety of print media, including newspaper inserts such as magazines and supplements. Vertis and its affiliates (Bankr. D. Del. Lead Case No. 12-12821), returned to Chapter 11 bankruptcy on Oct. 10, 2012, this time to sell the business to Quad/Graphics, Inc., for $258.5 million, subject to higher and better offers in an auction. As of Aug. 31, 2012, the Debtors' unaudited consolidated financial statements reflected assets of approximately $837.8 million and liabilities of approximately $814.0 million. Bankruptcy Judge Christopher Sontchi presides over the 2012 case. Vertis is advised by Perella Weinberg Partners, Alvarez & Marsal, and Cadwalader, Wickersham & Taft LLP. Quad/Graphics is advised by Blackstone Advisory Partners, Arnold & Porter LLP and Foley & Lardner LLP, special counsel for antitrust advice. Kurtzman Carson Consultants LLC is the Debtors' claims agent. Quad/Graphics is a global provider of print and related multichannel solutions for consumer magazines, special interest publications, catalogs, retail inserts/circulars, direct mail, books, directories, and commercial and specialty products, including in-store signage. Headquartered in Sussex, Wis. (just west of Milwaukee), the Company has approximately 22,000 full-time equivalent employees working from more than 50 print-production facilities as well as other support locations throughout North America, Latin America and Europe. Vertis first filed for bankruptcy (Bankr. D. Del. Case No. 08- 11460) on July 15, 2008, to complete a merger with American Color Graphics. ACG also commenced separate bankruptcy proceedings. In August 2008, Vertis emerged from bankruptcy, completing the merger. Vertis against filed for Chapter 11 bankruptcy (Bankr. S.D.N.Y. Case No. 10-16170) on Nov. 17, 2010. The Debtor estimated its assets and debts of more than $1 billion. Affiliates also filed separate Chapter 11 petitions -- American Color Graphics, Inc. (Bankr. S.D.N.Y. Case No. 10-16169), Vertis Holdings, Inc. (Bankr. S.D.N.Y. Case No. 10-16170), Vertis, Inc. (Bankr. S.D.N.Y. Case No. 10-16171), ACG Holdings, Inc. (Bankr. S.D.N.Y. Case No. 10- 16172), Webcraft, LLC (Bankr. S.D.N.Y. Case No. 10-16173), and Webcraft Chemicals, LLC (Bankr. S.D.N.Y. Case No. 10-16174). The bankruptcy court approved the prepackaged Chapter 11 plan on Dec. 16, 2010, and Vertis consummated the plan on Dec. 21. The plan reduced Vertis' debt by more than $700 million or 60%. GE Capital Corporation, which serves as DIP Agent and Prepetition Agent, is represented in the 2012 case by lawyers at Winston & Strawn LLP. Morgan Stanley Senior Funding Inc., the agent under the prepetition term loan, and as term loan collateral agent, is represented by lawyers at White & Case LLP, and Milbank Tweed Hadley & McCloy LLP. On Jan. 16, 2013, Quad/Graphics completed the acquisition of Vertis Holdings for a net purchase price of $170 million. This assumes the purchase price of $267 million less the payment of $97 million for current assets that are in excess of normalized working capital requirements. ********* 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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A list of Meetings, Conferences and Seminars appears in each Wednesday's edition of the TCR. Submissions about insolvency- related conferences are encouraged. Send announcements to conferences@bankrupt.com by e-mail. On Thursdays, the TCR delivers a list of recently filed Chapter 11 cases involving less than $1,000,000 in assets and liabilities delivered to the nation's bankruptcy courts. The list includes links to freely downloadable of these small-dollar petitions in Acrobat PDF documents. Each Friday's edition of the TCR includes a review about a book of interest to troubled company professionals. All titles are available at your local bookstore or through Amazon.com. Go to http://www.bankrupt.com/books/to order any title today. Monthly Operating Reports are summarized in every Saturday edition of the TCR. The Sunday TCR delivers securitization rating news from the week then-ending. ********* 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, Valerie Udtuhan, Howard C. Tolentino, Carmel Paderog, Meriam Fernandez, 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 2014. All rights reserved. ISSN: 1520-9474. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. 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