/raid1/www/Hosts/bankrupt/TCR_Public/061005.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
Thursday, October 5, 2006, Vol. 10, No. 237
Headlines
ADELPHIA COMMS: Liddo Wants to Exercise Termination Rights
ADELPHIA COMMS: Wants SPCP's Motion on Allowance Claims Denied
AER-EX INC: Case Summary & 18 Largest Unsecured Creditors
AFFILIATED COMPUTER: Buys Systech Integrators for $65 Million
AIR CANADA: Pilots Sue to Stop ACE's C$2 Bil. Shareholder Payout
ALBERTSON'S INC: Moody's Assigns LGD4 Loss-Given-Default Ratings
ANTOINE CAWOG: Case Summary & Three Largest Unsecured Creditors
ANVIL KNITWEAR: Files Plan and Disclosure Statement in New York
ARMSTRONG WORLD: Inks $1.1 Bil. Credit Pact with Bank of America
ARMSTRONG WORLD: Armstrong Holdings Forms Committee for AWI Claims
ASPECT SOFTWARE: Moody's Assigns Loss-Given-Default Ratings
BELDEN CDT: Moody's Assigns Loss-Given-Default Ratings
BELLAIRE GENERAL: Chapter 7 Trustee Hires Commerce Restructuring
BGF INDUSTRIES: Moody's Assigns Loss-Given-Default Ratings
BRODER BROS: Moody's Confirms B1 Corporate Family Rating
BROOKLYN HOSPITAL: Secures PACS Equipment from CIT Healthcare
BUMBLE BEE: Moody's Assigns B1 Corporate Family Ratings
CAPE SYSTEMS: June 30 Equity Deficit Increases to $24,480,000
CARLTON COVE: Wants Maynard Cooper as Bankruptcy Counsel
CARMIKE CINEMAS: Moody's Confirms B2 Corporate Family Rating
CELESTICA INT'L: Moody's Assigns Loss-Given-Default Ratings
CENTRIX FINANCIAL: Hires Squire Sanders as Bankruptcy Counsel
CENTRIX FINANCIAL: Turns to Raymond James for Financial Advice
CG MULTIFAMILY: Judge Brown Dismisses Chapter 11 Case
CIENA CORP: Moody's Assigns Loss-Given-Default Ratings
CITGO PETROLEUM: Affirms Commitment to General Public in U.S.
CJR ENTERPRISES: Case Summary & 18 Largest Unsecured Creditors
CLUETT AMERICAN: Moody's Confirms Caa1 Corporate Family Rating
COMMSCOPE INC: Updates 2006 Third and Fourth Quarters Guidance
COMMSCOPE INC: Moody's Assigns Loss-Given-Default Ratings
COMMUNITY SOLUTIONS: Voluntary Chapter 11 Case Summary
COMPLETE PRODUCTION: Moody's Reviews B2 Rated Senior Facilities
COMPLETE RETREATS: Withdraws Application to Hire XCMS LLC as Agent
COMPLETE RETREATS: Withdraws Application to Hire XRoads as Advisor
COMPLETE RETREATS: Taps Etlin & XRoads Under U.S. Bankr. Sec. 363
COPELANDS' ENTERPRISES: Hires Pachulski Stang as Bankr. Counsel
COPELANDS' ENTERPRISES: Committee Hires Kronish Lieb as Counsel
COPELANDS' ENTERPRISES: Files Schedules of Assets and Liabilities
CPH ENTERPRISES: Voluntary Chapter 11 Case Summary
DALLAS AEROSPACE: Chapter 7 Trustee Wants Case Dismissed
DALLAS AEROSPACE: Chapter 7 Trustee Wants Special Counsel Employed
DANA CORP: Retiree Committee Selects Stahl Cowen as Counsel
DANA CORP: Retiree Committee Selects DSI as Financial Advisors
DANA CORP: Creditors and Equity Panels Gets Court OK to Hire ARPC
DESIGNING TEXAS: Case Summary & 20 Largest Unsecured Creditors
ECHOSTAR COMMS: Can Continue Selling DVRs, Appellate Court Says
ENRON CORP: Judge Gonzalez Approves El Paso Settlement
ENTERGY NEW ORLEANS: Exclusive Period Hearing Scheduled on Oct. 23
ENTERGY NEW ORLEANS: Court Lifts Stay to Permit Tax Settlement
EVANS INDUSTRIES: Plan Confirmation Hearing Scheduled on Oct. 17
FACTORY 2-U: Ct. OKs LECG LLC as Ch. 7 Trustee's Financial Analyst
FACTORY 2-U: Ch. 7 Trustee Hires Heiman Gouge as Special Counsel
FEDERAL MOGUL: Court OKs Entry Into Hercules Payment Agency Pact
FLEXTRONICS INT'L: Moody's Assigns Loss-Given-Default Ratings
GCI INC: Moody's Holds Corporate Family Rating at Ba3
GENERAL MOTORS: U.S. Divisions Deliver 338,380 Vehicles In Sept.
GENESIS HOSPITALITY: Case Summary & 19 Largest Unsecured Creditors
GUERRINI FAMILY: Involuntary Chapter 11 Case Summary
HEALTHCARE PARTNERS: S&P Rates $295 Million Sr. Facilities at BB
INTEGRATED HEALTH: Wants to Make $30MM Distribution to Two Classes
INTEGRATED HEALTH: Wants Until January 2 to Object to Claims
INTERSTATE BAKERIES: Darst Wants Stay Lifted to Pursue Appeal
J. RAY MCDERMOTT: Moody's Assigns Loss-Given-Default Rating
KMART CORP: Court Approves Pact Resolving Conaway's $19.6MM Claim
KMART CORP: GPS Says It Has No Duty to Produce Multiple Doc Forms
KMART CORP: Recaps Summary Judgment Request on Eagle's $329K Claim
LE GOURMET: Taps Minken & Associates for Tax Advisory Services
LE GOURMET: Committee Gets Court Okay to Retain Traxi as Advisors
LEATHERLAND CORP: U.S. Trustee Holds Sec. 341(a) Meeting Tomorrow
LEATHERLAND CORP: Ch. 7 Trustee Hires George Lang as Accountant
LIFEPOINT HOSPITALS: Moody's Assigns Loss-Given-Default Rating
MAVERICK TUBE: Moody's Assigns Loss-Given-Default Rating
MEDCATH HOLDINGS: Moody's Assigns Loss-Given-Default Rating
MESABA AVIATION: Committee Wants to Commence Actions Against MAIR
MICHAEL MORLEY: Case Summary & 10 Largest Unsecured Creditors
MONTGOMERY WARD: $2.4 Mil. Payments to OTC Were Not Preferential
MORGAN STANLEY: S&P Affirms $3 Million Class A-3 Notes' B+ Rating
MOTIVNATION INC: June 30 Balance Sheet Upside-Down by $862,704
NANOVATION TECH: Letter Was Insufficient to Trigger D&O Coverage
NATURADE INC: June 30 Stockholders' Deficit Widens to $10.8 Mil.
NATURADE INC: U.S. Trustee Names Seven-Member Creditors' Committee
NCT GROUP: June 30 Stockholders' Deficit Increases to $168 Million
NEW RIVER: Wants Marine Realty as Real Estate Agent
NEWPARK RESOURCES: Moody's Assigns Loss-Given-Default Ratings
NORTEL NETWORKS: Inks Multi-Year Agreement With Videotron Ltd.
NORTEL NETWORKS: Moody's Assigns Loss-Given-Default Ratings
NORTH AMERICAN: Moody's Assigns Loss-Given-Default Rating
OMNE STAFFING: Ct. Expands Scope of Duties of Trustee's Counsel
OXFORD MEDIA: June 30 Stockholders' Deficit Rises to $6,033,897
PARKER DRILLING: Moody's Assigns Loss-Given-Default Ratings
PATHMARK STORES: Moody's Assigns LGD5 Loss-Given-Default Rating
PENN NATIONAL: Moody's Assigns Loss-Given-Default Ratings
PLY-GEM: Moody's Lowers Rating on $360MM Notes to Caa1 from B3
PRESTIGE BRANDS: $60MM Secured Revolver Gets Moody's LGD3 Rating
PRIDE INTERNATIONAL: Moody's Assigns Loss-Given-Default Ratings
RADNOR HOLDINGS: Meeting of Creditors Continued to October 23
RADNOR HOLDINGS: Hires KPMG LLP as Accountant and Tax Advisor
RICK FLAUGH: Case Summary & 19 Largest Unsecured Creditors
ROBERT HAAG: Case Summary & 10 Largest Unsecured Creditors
SANMINA-SCI CORP: Moody's Assigns Loss-Given-Default Ratings
SANTA FE: 15375 Memorial Files Schedules of Assets & Liabilities
SATELITES MEXICANOS: Taps Boyden Affiliate to Search for CEO
SATELITES MEXICANOS: Galicia Represents Mexican Regulatory Agency
SEA CONTAINERS: Common Shares & Sr. Notes to Cease Trading on NYSE
SEMCAMS HOLDING: Moody's Assigns B1 Rating to $250MM Senior Notes
SEMGROUP L.P.: Fitch Rates Proposed $250 Million Sr. Notes at B+
SHREEKRISHNA: Case Summary & 17 Largest Unsecured Creditors
SILICON GRAPHICS: Must File Post-Confirmation Report by November 9
SILICON GRAPHICS: Wants to Assume 107 Contracts & Fix Cure Costs
SITEWORKS BUILDING: June 30 Balance Sheet Upside-Down by $512,734
SKAMANIA COVES: Involuntary Chapter 11 Case Summary
SOLECTRON CORP: Moody's Assigns Loss-Given-Default Ratings
SPARTA COMMERCIAL: Posts $464,316 Net Loss in 2007 1st Fiscal Qtr.
SPARTA COMMERCIAL: A.W. Adler is EVP & Principal Financial Officer
SPECIALTYCHEM PRODUCTS: Can Access Cash Collateral Until Oct. 29
SPECIALTYCHEM PRODUCTS: Wants to Sell Assets as a Going Concern
STRUCTURED ASSET: S&P Downgrades Class B-5 Loan's Rating to CCC
SUPERVALU INC: Moody's Confirms Ba3 Corporate Family Rating
SURETY CAPITAL: Earns $1.2 Million in First Quarter of 2006
TEKNOWLEDGE CORP: Earns $330,207 in Second Quarter Ended June 30
TIMKEN CO: Invests Over $12 Mil. for New Tech Center in Arizona
TIVO INC: EchoStar Can Continue Selling Digital Video Recorders
TIVO INC: Posts $6.4MM Net Loss in 2nd Fiscal Qtr. Ended July 31
TRAINER WORTHAM: Moody's Reviews Caa2 Rating on $10MM Notes
TRANS ENERGY: Acquires J.B. Dewhurst Oil & Gas Lease for $800,000
TRIBUNE CO: S&P Lowers Rating on Series 2006-1 Debentures to BB+
VESTA INSURANCE: Bankruptcy Administrator Amends Creditors' Panel
VESTA INSURANCE: Administrator Appoints Gaines Creditors' Panel
VIASYSTEMS INC: Moody's Assigns Loss-Given-Default Rating
WARD PRODUCTS: Files Schedules of Assets and Liabilities
WESTERN MEDICAL: Files Schedules of Assets and Liabilities
WIDEOPENWEST FINANCE: S&P Rates $150 Mil. 2nd-Lien Loan at CCC+
WINN-DIXIE: Retirees Committee Supports Reorganization Plan
WINN-DIXIE: Ct. Disallows 499 Duplicative Claims Totaling $2.4BB
WINN-DIXIE: Duval County Wants Claims Objection Overruled
XENONICS HOLDINGS: Posts $633,000 Net Loss in 2006 Second Quarter
YUKOS OIL: Court Orders $1.6-Bln Payment of 2004 Tax Fines
YUKOS OIL: Rosneft Taps Banks for $20-Bln Loan to Buy Assets
ZIPPITY HOMES: Case Summary & 12 Largest Unsecured Creditors
* Focus Management's Ken Naglewski Named as CIRA Professional
* Robert Cunningham Joins Gibson Dunn in New York as Partner
* Chapter 11 Cases with Assets & Liabilities Below $1,000,000
*********
ADELPHIA COMMS: Liddo Wants to Exercise Termination Rights
----------------------------------------------------------
Liddo LLC, has withdrawn its motion to:
a. lift the automatic stay to permit Liddo to exercise its
termination rights under a Cable Agreement; or
b. shorten the time within which Adelphia Communications
Corporation must assume or reject the Cable Agreement under
Section 365.
Andrew L. Morrison, Esq., at Reed Smith LLP, in New York, relates
that on April 3, 1999, Liddo and Benchmark Acquisition I, Limited
Partnership, dba Cablevision of Loudoun, entered into a Cable
Service Agreement. Cablevision Loudoun agreed to:
-- install cable within the areas of the Easement to
provide cable television distribution and transmission
lines within the Development for the receipt and
transmission of television signals, cable programming and
Internet services; and
-- provide cable programming and other services to the
residents of the Development.
Pursuant to the terms and conditions of that certain Purchase and
Sale Agreement dated May 18, 1999, the Debtor purchased
substantially all of the assets of Cablevision Loudoun. In
accordance with the Purchase and Sale Agreement, the Cable
Agreement was assigned to the Debtor and it thereby assumed all of
the rights, liabilities and obligations of Cablevision under the
Cable Agreement.
The Cable Agreement, inter alia, provides that the Debtor, as
successor-in-interest to Cablevision Loudoun, has the sole and
exclusive right to enter into agreements with Liddo to provide
Cable Services or any satellite or other type of pay television
programming to the homeowners in the Development. The Cable
Agreement obligates the Debtor to pay Liddo $350 per constructed
home. The Constructed Home Fee is due and payable within 30 days
of home cable installation occupation.
Moreover, under the Cable Agreement, the Debtor agreed to:
-- offer optional Internet access service to homeowners in the
Development at a 15% discount off of its regular retail
rate for the service in Loudoun County;
-- cooperate with Liddo in maintaining in effect all rights,
permits, consents, licenses, authorization, approvals and
legally permitted easements required by the Debtor for the
installation and use of the Cable System; and
-- furnish the services contemplated in the Agreement, whether
the Rights are from governmental agencies, private parties
or otherwise.
Mr. Morrison tells the Court that Liddo has the right to terminate
the Cable Agreement by written notice to the Debtor in the event
that the Debtor materially breaches or defaults under the terms of
the Cable Agreement. Liddo is required to give a 90-day prior
written notice of its intention to terminate with respect to non-
monetary defaults and 10 days prior written notice of its
intention to terminate with respect to monetary defaults. The
Debtor has the right to cure, within those periods, the defaults
identified by Liddo in the notice.
In a letter dated March 25, 2005, Liddo advised the Debtor of its
continuing defaults under the terms of the Cable Agreement.
According to Liddo:
-- The Debtor has failed to pay the Constructed Home Fees
accruing and due for Nov. 2004 (totaling $1,050) and
Dec. 2004 (totaling $4,200); and
-- the Debtor has continually failed to honor the Internet
Access Discount with respect to homeowners in the
Development.
In the course of negotiations to address the default issue, the
Debtor steadfastly attempted to limit the application of the
Internet Access Discount to the most recent 12-month period and
failed to provide credits to the Development homeowners even
during this limited period, Mr. Morrison points out. Liddo
interprets this as a failure of cooperation under the requirements
of the Cable Agreement.
Absent a cure of the defaults, the March 25 letter informed the
Debtor that Liddo would pursue appropriate relief in the
Bankruptcy Court. As of April 11, 2005, the Debtor failed and
refused to cure any of the defaults. Despite the continuing
defaults, Liddo is prohibited from enforcing the termination
provisions contained in the Cable Agreement.
Mr. Morrison further notes that the Cable Agreement has not yet
been assumed or rejected by the Debtor under the provisions of
Section 365 of the Bankruptcy Code. Liddo is aware that the
Debtor's business assets and operations are presently being
marketed for sale. In the event of a sale, there is equal chance
that the Cable Agreement will be assumed and assigned to the
successful bidder or rejected. Whatever the outcome, Mr. Morrison
says, there will be substantial delay until the actual decision is
made to assume or reject the Cable Agreement. In the interim, if
the defaults are permitted to continue without consequence, Liddo
and the homeowners of the Development will suffer substantial
prejudice.
About Liddo LLC
Liddo LLC is a Maryland limited liability corporation and is the
owner of an exclusive easement along all of the private roadways
contained within that planned residential development commonly
known as Rivercreek, located in Loudoun County, Virginia.
About Adelphia Communications
Based in Coudersport, Pa., Adelphia Communications Corporation
(OTC: ADELQ) -- http://www.adelphia.com/-- is the fifth-largest
cable television company in the country. Adelphia serves
customers in 30 states and Puerto Rico, and offers analog and
digital video services, high-speed Internet access and other
advanced services over its broadband networks. The Company and
its more than 200 affiliates filed for Chapter 11 protection in
the Southern District of New York on June 25, 2002. Those cases
are jointly administered under case number 02-41729. Willkie Farr
& Gallagher represents the ACOM Debtors. PricewaterhouseCoopers
serves as the Debtors' financial advisor. Kasowitz, Benson,
Torres & Friedman, LLP, and Klee, Tuchin, Bogdanoff & Stern LLP
represent the Official Committee of Unsecured Creditors.
Adelphia Cablevision Associates of Radnor, L.P., and 20 of its
affiliates, collectively known as Rigas Manged Entities, are
entities that were previously held or controlled by members of the
Rigas family. In March 2006, the rights and titles to these
entities were transferred to certain subsidiaries of Adelphia
Cablevision, LLC. The RME Debtors filed for chapter 11 protection
on March 31, 2006 (Bankr. S.D.N.Y. Case Nos. 06-10622 through
06-10642). Their cases are jointly administered under Adelphia
Communications and its debtor-affiliates chapter 11 cases.
(Adelphia Bankruptcy News, Issue Nos. 148; Bankruptcy Creditors'
Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000)
ADELPHIA COMMS: Wants SPCP's Motion on Allowance Claims Denied
--------------------------------------------------------------
The Adelphia Communications Corporation Debtors ask the Honorable
Robert E. Gerber, U.S. Bankruptcy Court Judge for the Southern
District of New York, to deny the Motion of SPCP Group, L.L.C. to
reconsider the Order Granting the Debtors' Eighth Omnibus
Objection to the Allowance of Certain Claims.
As reported in the Troubled Company Reporter on July 14, 2006 the
SPCP Group, asked the Court to reconsider the disallowance of a
portion of Claim Nos. 4712 and 4714, which reduced the claims from
$43,946,110 to $28,302,507.
Shelley C. Chapman, Esq., at Willkie Farr & Gallagher LLP, in New
York, notes that SPCP Group, L.L.C., an experienced claims buyer,
seeks reconsideration of the Order Granting the Debtors' Eighth
Omnibus Objection to the Allowance of Certain Claims, which
reduced and allowed two claims in which it has an ownership
interest, despite the fact that it admittedly received actual
notice of the Claims Objection and failed to respond.
"Not only did Silver Point fail to respond, formally or
informally, to the Claims Objection, but it also may have violated
its contractual obligation to its transferor, the original
claimant, Fox Cable Networks Services LLC and Fox News Network,
L.L.C., by not providing Fox with notice and an opportunity to
respond to the Claims Objection," Ms. Chapman says.
As a result, Silver Point now seeks to remedy its error vis-a-vis
Fox by asking the Court to force the Debtors to re-open the merits
of the Claims -- to the prejudice of the Debtors and their
creditors, Ms. Chapman points out.
The ACOM Debtors submit that Silver Point's failure to respond to
the Claims Objection does not constitute "excusable neglect" under
the law and, therefore, Silver Point has not established cause for
the Court to reconsider the disallowance of a portion of the
Claims. Ms. Chapman asserts that the cost of a "mistake"
resulting from lack of communication between a buyer and a seller
of a claim should be borne by the contracting parties, not by the
Debtors.
Based in Coudersport, Pa., Adelphia Communications Corporation
(OTC: ADELQ) -- http://www.adelphia.com/-- is the fifth-largest
cable television company in the country. Adelphia serves
customers in 30 states and Puerto Rico, and offers analog and
digital video services, high-speed Internet access and other
advanced services over its broadband networks. The Company and
its more than 200 affiliates filed for Chapter 11 protection in
the Southern District of New York on June 25, 2002. Those cases
are jointly administered under case number 02-41729. Willkie Farr
& Gallagher represents the ACOM Debtors. PricewaterhouseCoopers
serves as the Debtors' financial advisor. Kasowitz, Benson,
Torres & Friedman, LLP, and Klee, Tuchin, Bogdanoff & Stern LLP
represent the Official Committee of Unsecured Creditors.
Adelphia Cablevision Associates of Radnor, L.P., and 20 of its
affiliates, collectively known as Rigas Manged Entities, are
entities that were previously held or controlled by members of the
Rigas family. In March 2006, the rights and titles to these
entities were transferred to certain subsidiaries of Adelphia
Cablevision, LLC. The RME Debtors filed for chapter 11 protection
on March 31, 2006 (Bankr. S.D.N.Y. Case Nos. 06-10622 through
06-10642). Their cases are jointly administered under Adelphia
Communications and its debtor-affiliates chapter 11 cases.
(Adelphia Bankruptcy News, Issue Nos. 148; Bankruptcy Creditors'
Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000)
AER-EX INC: Case Summary & 18 Largest Unsecured Creditors
---------------------------------------------------------
Debtor: AER-EX Inc.
dba AER-EX Excavating Inc.
307 West 1st Avenue, Suite 2
Ellensburg, WA 98926
Tel: (509) 962-7885
Bankruptcy Case No.: 06-02458
Debtor-affiliates filing separate chapter 11 petitions:
Entity Case No.
------ --------
Michael R. Stougard 06-02463
Type of Business: The Debtor is an excavation contractor.
Chapter 11 Petition Date: October 2, 2006
Court: Eastern District of Washington (Spokane/Yakima)
Judge: Frank L. Kurtz
Debtor's Counsel: Thomas N. Bucknell, Esq.
Bucknell Stehlik Sato & Stubner
2003 Western Avenue, Suite 400
Seattle, WA 98121
Tel: (206) 587-0144
Fax: (206) 587-0277
Total Assets Total Debts
------------ -----------
AER-EX Inc. $846,882 $1,418,206
Michael R. Stougard $784,782 $1,405,863
A. AER-EX Inc. did not file a list of its 20 largest unsecured
creditors.
B. Michael R. Stougard's 18 Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
------ --------------- ------------
Internal Revenue Service Federal Withholding $222,563
P.O. Box 21126 Tax
Philadelphia, PA 19114
Trust Fund Penalty $161,266
Others $80,975
Jerry L. and Barbara M. Kelly Deed of Trust $84,621
P.O. Box 1121
Clinton, WA 98236
Pivotal Solutions, Inc. UCC on Personal $25,000
451 Southwest 10th Street Property
Suite 107
Renton, WA 98055
Dawson & Gerbic, LLP UCC on Personal $18,115
2208 Northwest Market Street Property
Suite 405
Seattle, WA 98507
Eileen Stougard Deed of Trust $15,000
500 Locust Street
Ellensburg, WA 98926
Discover Card Credit Card Purchases $13,195
Capitol One FSB Beauty Supplies $2,184
Washington State Excise Tax $2,000
Department of Revenue
City of Ellensburg Utility Bills $1,556
Pacific Salon Systems Beauty Supplies $510
Ellensburg Telephone Telephone Service $420
West Coast Beauty Beauty Supplies $312
Daily Record Advertising $218
Alaska Airlines Supplies $154
The Copy Shop Photocopies $144
Tina-Marie Lasha Window Painting $113
Shaw's Furniture & Appliance Air Conditioner $112
EBSCO Reception Room Magazine Purchases $30
AFFILIATED COMPUTER: Buys Systech Integrators for $65 Million
-------------------------------------------------------------
Affiliated Computer Services, Inc., has acquired Systech
Integrators, Inc., an information technology solutions company
offering an array of SAP services. The terms of the acquisition
specify a purchase price of $65 million plus contingent payments
based on future financial performance. The transaction will be
funded with a combination of cash on hand and borrowings under
ACS' existing credit facility.
ACS will leverage this acquisition to increase its stronghold as a
provider of SAP-based solutions, and solidify its market position
with FORTUNE 1000 and mid-market companies. Systech's services
include SAP consulting services, systems integration, and custom
application development and maintenance. ACS will also leverage
Systech's SAP footprint to further enhance its BPO offerings and
offshore-based consulting services specific to SAP solutions.
"The acquisition of Systech furthers ACS' ability to offer cost-
effective, end-to-end IT outsourcing to the rapidly expanding mid-
market," said Ann Vezina, Group President of ACS Commercial
Solutions. "By augmenting our existing SAP solutions with
advanced systems integration, strategic consulting, onshore &
offshore custom application development, and robust hosting
capabilities, we will enhance our position as a comprehensive
provider of SAP services across numerous markets."
Ms. Vezina also cited Systech's strong relationship with SAP as a
deciding factor in the acquisition. Systech has long been a
premier partner of SAP America, and is one of the few U.S. IT
services firms focusing exclusively on SAP services. ACS will
build on Systech's success in shaping what is considered SAP's
most responsive and resourceful consulting alliance.
"Systech Integrators has been an outstanding partner of SAP
America. Together, we have helped many mid-market customers
achieve increased efficiency and business value," said Greg Tomb,
SAP Executive Vice President Field Services - Americas. "The
combined strengths of Systech and ACS create an attractive
alternative for end-to-end system integration services in the
market."
"ACS is committed to expanding the market for SAP services.
Systech's services, clients, and affiliation with SAP have created
a solid foundation for ACS to offer a full spectrum of SAP
solutions that will generate ongoing opportunities with existing
customers and success in new markets," said Gary Gauba and Sam
Tyagi, Co-CEOs of Systech Integrators. "The addition of our
client base and employees will help ACS build upon its already
growing reputation in SAP, and broaden its overall capabilities as
a pioneer in IT outsourcing."
About Systech
Systech Integrators, Inc. -- http://www.systechi.com/-- is a
global IT solutions and services company that offers SAP solutions
in ERP, CRM, BI, SCM, SEM, SRM and Enterprise Portals, among
others, with an emphasis on NetWeaver and emerging technologies.
Systech has offices across the U.S. and development centers in San
Jose and India, and is a Premier Services, Offshore and Channel
Partner for SAP Americas
About Affiliated Computer
Headquartered in Dallas, Texas, Affiliated Computer Services,
Inc., (NYSE: ACS) -- http://www.acs-inc.com/-- provides business
process outsourcing and information technology solutions to
commercial and government clients.
* * *
As reported in the Troubled Company Reporter on Oct. 4, 2006,
Standard & Poor's Ratings Services lowered its corporate credit
rating and senior secured ratings on Dallas, Texas-based
Affiliated Computer Services, Inc. to 'B+' from 'BB'. The ratings
remain on CreditWatch with negative implications where they were
placed on Jan. 27, 2006.
AIR CANADA: Pilots Sue to Stop ACE's C$2 Bil. Shareholder Payout
----------------------------------------------------------------
Air Canada's pilots are taking legal action to prevent a proposed
C$2-billion shareholder distribution by ACE Aviation Holdings Inc.
that will restrict Air Canada's ability to meet its financial
obligations to its creditors and compromise the airline's ability
to weather an economic downturn.
"The legal action we have filed is to ensure the long-term
economic viability of Air Canada," says Capt. Andy Wilson,
president of the Air Canada Pilots Association. "We are asking
that the courts stop the distribution, and prevent the ACE board
from hollowing-out Air Canada and compromising its financial
future."
The court action, filed under the Canada Business Corporations
Act, commonly known as the 'oppression remedy,' says the proposed
return of up to C$2-billion to shareholders is oppressive and
unfairly disregards the interests of Air Canada's creditors. Air
Canada's pilots are creditors by virtue of the over C$1-billion in
pension obligations that remain outstanding following the
company's emergence from insolvency in 2004.
The lawsuit comes on the eve of an ACE shareholders' meeting in
Montreal where the approval of the mechanics of the asset
distribution is expected. Under the proposal, shareholders of ACE
Aviation will initially receive an undisclosed number of Aeroplan
LP units, but the distributions could include cash and assets up
to the C$2-billion mark.
"While we recognize the right of management to fairly reward
shareholders, this proposed distribution is unprecedented,
excessive and could start us on a path towards another round of
bankruptcy," says Capt. Wilson. "Air Canada is now on the road to
recovery. The proposed distribution could put that recovery in
serious jeopardy.
"We have 3,100 pilots and 2,300 pensioners who depend on Air
Canada for their livelihood. All of the company's creditors,
including union and non-union employees, have made tremendous
sacrifices to save this airline. We all have a vested interest in
the future of this company."
The restructured Air Canada is now a profitable and growing
enterprise, says Mr. Wilson. However, the removal of such a large
amount of capital could put into question the airline's ability to
weather a normal downturn in the economy and still meet its
financial obligations.
ACPA is the largest professional pilot group in Canada,
representing 3,100 pilots who operate Air Canada's mainline fleet.
About Air Canada
Air Canada -- http://www.aircanada.com/-- together with Air
Canada Jazz and other business units of parent company ACE
Aviation Holdings Inc., provides scheduled and charter air
transportation for passengers and cargo to more than 150
destinations, vacation packages to over 90 destinations, as well
as maintenance, ground handling and training services to other
airlines.
Air Canada filed for CCAA protection on April 1, 2003 (Ontario
Superior Court of Justice, Case No. 03-4932) and filed a Section
304 petition in the U.S. Bankruptcy Court for the Southern
District of New York (Case No. 03-11971). Mr. Justice Farley
sanctioned Air Canada's CCAA restructuring plan on Aug. 23, 2004.
Sean F. Dunphy, Esq., and Ashley John Taylor, Esq., at Stikeman
Elliott LLP, in Toronto, serve as Canadian Counsel to the carrier.
Matthew A. Feldman, Esq., and Elizabeth Crispino, Esq., at Willkie
Farr & Gallagher, serve as the Debtors' U.S. Counsel. When the
Debtors filed for protection from their creditors, they listed
C$7,816,000,000 in assets and C$9,704,000,000 in liabilities.
On Sept. 30, 2004, Air Canada successfully completed its
restructuring process and implemented its Plan of Arrangement.
The airline exited from CCAA protection raising C$1.1 billion of
new equity capital.
Canada's flag carrier is recognized as a leader in the global air
transportation market by pursuing a strategy based on value-added
customer service, technical excellence and passenger safety.
* * *
As reported in the Troubled Company Reporter on April 24, 2006,
Standard & Poor's Ratings Services raised the long-term corporate
credit rating on ACE Aviation Holdings Inc. to 'B+' from 'B',
while affirming the 'B' long-term corporate credit rating on its
wholly owned subsidiary, Air Canada. The outlook on both entities
remains stable.
ALBERTSON'S INC: Moody's Assigns LGD4 Loss-Given-Default Ratings
----------------------------------------------------------------
In connection with Moody's Investors Service's implementation of
its new Probability-of-Default and Loss-Given-Default rating
methodology for the U.S. and Canadian Retail sector, the rating
agency upgraded to B1 its B2 Ratings for Albertson's Inc.'s Senior
Unsecured Notes and its Medium Term Notes. Additionally, Moody's
assigned LGD4 ratings to the notes, suggesting noteholders will
experience a 60% loss in the event of a default.
Moody's explains that current long-term credit ratings are
opinions about expected credit loss, which incorporate both the
likelihood of default and the expected loss in the event of
default. The LGD rating methodology will disaggregate these two
key assessments in long-term ratings. The LGD rating methodology
will also enhance the consistency in Moody's notching practices
across industries and will improve the transparency and accuracy
of Moody's ratings as Moody's research has shown that credit
losses on bank loans have tended to be lower than those for
similarly rated bonds.
Probability-of-default ratings are assigned only to issuers, not
specific debt instruments, and use the standard Moody's alpha-
numeric scale. They express Moody's opinion of the likelihood
that any entity within a corporate family will default on any of
its debt obligations.
Loss-given-default assessments are assigned to individual rated
debt issues -- loans, bonds, and preferred stock. Moody's opinion
of expected loss are expressed as a percent of principal and
accrued interest at the resolution of the default, with
assessments ranging from LGD1 (loss anticipated to be 0% to 9%) to
LGD6 (loss anticipated to be 90% to 100%).
Headquartered in Boise, Idaho, Albertsons, Inc., operates about
2500 food and drug stores in 37 states. Revenues for the fiscal
year ended February 2, 2006 exceeded $40.3 billion.
ANTOINE CAWOG: Case Summary & Three Largest Unsecured Creditors
---------------------------------------------------------------
Debtor: Antoine F. Cawog
Aurora N. Cawog
102 Foxwood Drive
Greensburg, PA 15601-9550
Bankruptcy Case No.: 06-24758
Type of Business: The Debtors filed for chapter 11 protection on
November 15, 2002 (Bankr. W.D. Pa. Case No. 02-
32573).
Chapter 11 Petition Date: September 28, 2006
Court: Western District of Pennsylvania (Pittsburgh)
Judge: Judith K. Fitzgerald
Debtors' Counsel: Samuel Oppenheim, Esq.
708 Allegheny Building
429 Forbes Avenue
Pittsburgh, PA 15219
Tel: (412) 471-6464
Estimated Assets: $100,000 to $500,000
Estimated Debts: $1 Million to $10 Million
Debtors' Three Largest Unsecured Creditors:
Entity
------
Internal Revenue Service
P.O. Box 628
Pittsburgh, PA 15230
John Cawog
Jatool Building
Shleimaniem Street
Aleppo, Syria
Sirham Cawog
Jatool Building
Shleimaniem Street
Aleppo, Syria
ANVIL KNITWEAR: Files Plan and Disclosure Statement in New York
---------------------------------------------------------------
Anvil Knitwear, Inc., and its two debtor-affiliates, Anvil
Holdings, Inc., and Spectratex, Inc., filed with the U.S.
Bankruptcy Court for the Southern District of New York a Joint
Chapter 11 Plan of Reorganization and an accompanying Disclosure
Statement explaining that plan.
Pre-Bankruptcy Negotiations
The Debtors relates that starting in the summer of 2006, they and
an ad hoc committee consisting of representatives of certain
holders of the Old Senior Notes engaged in a series of discussions
regarding a potential restructuring of the Debtors' capital
structure. The members of the Ad Hoc Noteholders Committee
collectively hold or manage approximately $63.7 million, or
approximately 49%, of the outstanding principal amount of the Old
Senior Notes.
On Aug. 18, 2006, the Debtors say that they had reached an
agreement in principle on a term sheet with the Ad Hoc Noteholders
Committee that contemplated a capital restructuring transaction
through pre-negotiated Chapter 11 cases. Accordingly, the Ad Hoc
Noteholders Committee and its members intend to support
confirmation of the Plan.
Treatment of Claims
Under the Plan, Administrative Claims, DIP Facility Claims, Tax
Claims and Priority Claims are unimpaired and will be paid in
full.
Revolving Credit Facility Claims will receive either of these
treatments:
(a) the Revolving Credit Facility will remain in place and the
remaining obligations under the facility will be
reinstated; or
(b) the Holder of the Allowed Revolving Credit Facility Claims
as of the Effective Date will have an Allowed Claim for
all amounts included in the definition of Revolving Credit
Facility Claims, if any.
In the case of Other Secured Claims, the applicable Debtor will
either:
(a) pay the Allowed amount of the applicable Claim in full on
the later of the Effective Date or the Allowance Date of
the Claim;
(b) return the underlying collateral to the Holder of the
Claim;
(c) Reinstate the Claim in accordance with the provisions of
Section 1124(2) of the Bankruptcy Code;
(d) pay the Claim in the ordinary course; or
(e) treat the Claim in a manner otherwise agreed to by the
Holder.
General Unsecured Claims against Anvil Holdings, Anvil Knitwear,
and Spectratex will be reinstated.
Holders of Old Senior Notes Claims, at the election of the members
of the Ad Hoc Noteholders Committee, will receive their pro rata
share of either:
(i) the New Senior Notes and 9.8 million shares of New
Anvil Holdings Common Stock, representing, as of the
Effective Date, in the aggregate, 98% of the outstanding
shares of New Anvil Holdings Common Stock, subject to
dilution by any shares issued upon the exercise of the New
Warrants or any shares or options issued under the
Management and Director Equity Plan;
(ii) cash in the amount of no less than $40 million and no more
than $60 million on terms acceptable to the Ad Hoc
Noteholders Committee plus 9.8 million shares of New Anvil
Holdings Common Stock, representing, as of the Effective
Date, in the aggregate, 98% of the outstanding shares of
New Anvil Holdings Common Stock, subject to dilution by
any shares issued upon the exercise of the New Warrants or
any shares or options issued under the Management and
Director Equity Plan; or
(iii) 9.9 million shares of New Anvil Holdings Common Stock,
representing, as of the Effective Date, in the aggregate,
99% of the outstanding shares of New Anvil Holdings Common
Stock, subject to dilution by any shares issued upon the
exercise of the New Warrants or any shares or options
issued under the Management and Director Equity Plan.
Holders of Old Anvil Holdings Preferred Stock Interests, at the
election of the members of the Ad Hoc Noteholders Committee, will
receive their pro rata share of either:
(i) either (A) in the event the Holders of Old Senior Notes,
as a Class, select the third option, 100,000 shares of New
Anvil Holdings Common Stock, representing, as of the
Effective Date, in the aggregate, 1% of the outstanding
shares of New Anvil Holdings Common Stock, subject to
dilution by any shares issued upon the exercise of the New
Warrants or any shares or options issued under the
Management and Director Equity Plan, or (B) in the event
the Holders of Old Senior Notes select, as a Class, either
the first or second option, 200,000 shares of New Anvil
Holdings Common Stock, representing, as of the Effective
Date, in the aggregate, 2% of the outstanding shares of
New Anvil Holdings Common Stock, subject to dilution by
any shares issued upon the exercise of the New Warrants or
any shares or options issued under the Management and
Director Equity Plan;
(ii) the New Class A Warrants; and
(iii) the New Class B Warrants.
Old Anvil Holdings Common Stock Interests will be cancelled and
holders of these interests will receive nothing under the Plan.
All Intercompany Claims will be reviewed by the Debtors and
adjusted, continued, or discharged, as the Debtors determine is
appropriate, by, among other things, releasing the claims,
contributing them to capital, issuing a dividend, or leaving them
unimpaired.
At the election of the Reorganized Debtors, Old Stock of either
Anvil Knitwear or Spectratex:
(i) will be unaffected by the Plan, in which case the entity
holding an equity Interest in that certain Debtor will
continue to hold its Interest in the applicable
Reorganized Subsidiary following the Effective Date or
(ii) will be cancelled and new equity in the applicable
Reorganized Subsidiary will be issued pursuant to the
Plan.
A full-text copy of the Debtors' Disclosure Statement is available
for a fee at:
http://www.researcharchives.com/bin/download?id=061004215914
Anvil Knitwear, Inc., and its two debtor-affiliates, Anvil
Holdings, Inc., and Spectratex, Inc.
About Anvil Knitwear
Headquartered in Anvil Holdings, Inc., is a Delaware holding
company with no material operations and owns all of the
outstanding common stock of Anvil Knitwear, Inc. Anvil Knitwear,
in turn, owns all of the outstanding common stock of Spectratex,
Inc. fka Cottontops, Inc.
The Debtors design, manufacture, and market high quality
activewear for men, women, and children, including short and long
sleeve T-shirts, sport shirts, and niche products in a variety of
styles and fabrications. The Debtors also sell caps, towels,
robes, and bags. The Debtors primarily market and sell their
products to distributors, screen printers, and private label brand
owners, principally in the United States. The Debtors' products
are available under the "Anvil" brand names. The Debtors also
sell products under the following brands: "chromaZONE," "Cotton
Deluxe," "Towels Plus," and "Teak." The Debtors sometimes sell
their products under private label by agreements with holders of
other brand names.
The Debtors filed for chapter 11 protection on Oct. 2, 2006
(Bankr. S.D.N.Y. Case Nos. 06-12345 through 06-12347). Richard A.
Stieglitz, Jr., Esq., at Dechert, LLP, represents the Debtors.
The Debtors' consolidated financial data as of July 29, 2006
showed total assets of $110,682,000 and total debts of
$244,586,000. The Debtors' exclusive period to file a chapter 11
plan expires on Jan. 30, 2007.
ARMSTRONG WORLD: Inks $1.1 Bil. Credit Pact with Bank of America
----------------------------------------------------------------
Armstrong World Industries, Inc., and certain of its subsidiaries,
as guarantors, entered into a $1.1 billion credit agreement with a
syndicate of lenders on Oct. 2, 2006, according to a regulatory
filing by the Debtor with the Securities and Exchange Commission.
Bank of America, N.A., will serve as administrative agent, with:
* JPMorgan Chase Bank, N.A., and Barclays Bank PLC, as co-
syndication agents; and
* LaSalle Bank National Association and The Bank of Nova
Scotia, as co-documentation agents.
Walter T. Gangl, deputy general counsel and assistant secretary,
says the $1,100,000,000 Credit Agreement provides the Company
with:
(i) a $300,000,000 revolving credit facility, with sublimits
for letters of credit and swing-line loans and
contemplates a $300,000,000 Tranche A term loan; and
(ii) a $500,000,000 Tranche B term loan.
The Revolving Credit Facility is currently available and will be
used to support the Debtor's on-going liquidity needs, Mr. Gangl
notes. The Term Loans are not yet committed, pending completion
of the lender syndicate, but are currently expected by the Company
to become available and to be funded by Oct. 16, 2006.
The proceeds of the Term Loans will be used to fund in part
certain cash distributions required by the Plan of Reorganization
to be made by the Debtor to creditors and to the Asbestos Trust,
Mr. Gangl adds. The Plan of Reorganization provides for AWI to
issue certain notes instead of making a portion of the cash
distributions in the event the Term Loans are not committed and
funded in a sufficient amount by the time distributions are to be
made to the Company's creditors.
The Revolving Credit Facility and the Tranche A Term Loan will
mature on Oct. 2, 2011, and the Tranche B Term Loan will mature on
Oct. 2, 2013.
Borrowings under the Credit Agreement bear interest at a rate
equal to an applicable margin plus, at the Debtor's option,
either:
(a) a base rate determined by reference to the higher of:
(1) the federal funds rate plus 1/2 of 1%; or
(2) the "prime rate" of Bank of America; or
(b) a LIBOR rate determined by reference to the British
Bankers Association LIBOR Rate as published by Reuters
for the interest period relevant to the borrowing adjusted
for certain additional reserves.
The initial applicable margin for borrowings under the Revolving
Credit Facility will be 0.50% with respect to base borrowings and
1.50% with respect to LIBOR borrowings, with the applicable
margins subject to adjustment based on the Company's leverage
ratio.
The Debtor expects that the initial applicable margin for the:
* Tranche A Term Loan to be 0.50% with respect to base rate
borrowings and 1.50% with respect to LIBOR borrowings,
with the applicable margins subject to adjustment based on
the Company's leverage ratio; and
* Tranche B Term Loan to be 1.00% with respect to base rate
borrowings and 2.00% with respect to LIBOR borrowings.
In addition to paying interest on outstanding principal under the
Credit Agreement, the Debtor will pay a commitment fee to the
lenders under the Revolving Credit Facility in respect of certain
unutilized commitments at a rate per annum equal to 0.375%,
subject to adjustment based on the Company's leverage ratio. It
also expects to pay customary letter of credit fees.
The Credit Agreement requires the Debtor to prepay outstanding
loans, subject to certain exceptions, with:
(x) 100% of the net cash proceeds of all non-ordinary course
asset sales and casualty and condemnation events, subject
to certain exceptions and limitations; and
(y) 50% of its excess cash flow, subject to certain
exceptions based on the Company's leverage ratio and debt
ratings.
The Debtor may voluntarily repay outstanding loans under the
Credit Agreement at any time without premium or penalty, other
than customary "breakage" costs with respect to LIBOR loans.
A full-text copy of the $1,100,000,000 Credit Agreement is
available for free at http://ResearchArchives.com/t/s?12eb
Based in Lancaster, Pennsylvania, Armstrong World Industries, Inc.
-- http://www.armstrong.com/-- the major operating subsidiary of
Armstrong Holdings, Inc., designs, manufactures and sells interior
floor coverings and ceiling systems, around the world.
The Company and its debtor-affiliates filed for chapter 11
protection on December 6, 2000 (Bankr. Del. Case No. 00-04469).
Stephen Karotkin, Esq., at Weil, Gotshal & Manges LLP, and Russell
C. Silberglied, Esq., at Richards, Layton & Finger, P.A.,
represent the Debtors in their restructuring efforts. The Debtors
tapped the Feinberg Group for analysis, evaluation, and treatment
of personal injury asbestos claims.
Mark Felger, Esq. and David Carickhoff, Esq., at Cozen and
O'Connor, and Robert Drain, Esq., Andrew Rosenberg, Esq., and
Alexander Rohan, Esq., at Paul, Weiss, Rifkind, Wharton &
Garrison, represent the Official Committee of Unsecured Creditors.
The Creditors Committee tapped Houlihan Lokey for financial and
investment advice. The Official Committee of Asbestos Personal
Injury Claimant hired Ashby & Geddes as counsel.
When the Debtors filed for protection from their creditors, they
listed $4,032,200,000 in total assets and $3,296,900,000 in
liabilities. The Bankruptcy Court confirmed AWI's plan on
Nov. 18, 2003. The District Court Judge Robreno confirmed AWI's
Modified Plan on Aug. 14, 2006. The Clerk entered the formal
written confirmation order on Aug. 18, 2006. (Armstrong
Bankruptcy News, Issue No. 102; Bankruptcy Creditors' Service,
Inc., http://bankrupt.com/newsstand/or 215/945-7000).
* * *
As reported in the Troubled Company Reporter on Oct. 2, 2006
Standard & Poor's Ratings Services assigned its 'BB' bank loan
rating to the proposed $1.1 billion senior secured bank facility
of Armstrong World Industries Inc., based on preliminary terms and
conditions.
At the same time, Standard & Poor's assigned a '2' recovery
rating, indicating the likelihood of a substantial (80%-100%)
recovery of principal in the event of a payment default.
A Standard & Poor's credit analyst said "We expect the outlook to
be stable."
Moody's Investors Service has rated Armstrong World Industries,
Inc. new credit facility Ba2 and assigned a Corporate Family
Rating of Ba2. The ratings outlook is stable.
ARMSTRONG WORLD: Armstrong Holdings Forms Committee for AWI Claims
------------------------------------------------------------------
The Board of Directors of Armstrong Holdings, Inc., at a meeting
on September 16, appointed a special committee of the Board to
address the issues with Armstrong World Industries, Inc.
The committee will determine how AHI should deal with its Claim of
the Debtor and AHI's interest in utilizing the Armstrong group's
tax losses, as well as any other issues that may arise between AHI
and the Debtor. The committee intends to pursue a joint
resolution of the issues with the Debtor. The special committee
is comprised of AHI Board members Jerre Stead and Edward Sellers.
Neither of the directors is a current or prospective director or
officer of the Debtor. The special committee appointed the law
firm of McDermott, Will & Emery to advise them in connection with
the matters.
The Debtor, pursuant to its "Fourth Amended Plan of
Reorganization, as Modified," dated Feb. 21, 2006, ownership by
AHI ended upon the Debtor's emergence from Chapter 11.
All of the Debtor's stock owned by AHI has been cancelled.
On August 23, AHI announced that it has a pending claim in the
Debtor's Chapter 11 case. The AHI Claim relates to intercompany
charges and credits between the companies. If and to the extent
the AHI Claim or any part of it is allowed in the Debtor's Chapter
11 case, AHI would recover on such claim on the same basis as
other creditors of the Debtor will recover under the Plan of
Reorganization.
AHI, on August 23, also disclosed that the Armstrong group of
companies, including AHI and the Debtor, may be entitled to
receive a tax refund based upon a carry back of a portion of the
group's tax losses to prior years, which may include a substantial
ordinary income loss by AHI as a result of cancellation of AHI's
ownership in the Debtor. A study is underway to determine the
amount of that loss. Depending on the size of the loss, AHI may
also be entitled to additional benefits from carrying forward any
balance of its tax loss and the use of its tax loss to recover
estimated taxes paid by the Armstrong group of companies in 2006.
The Armstrong group's tax losses may be utilized in different
ways, which may benefit AHI and the Debtor differently, and AHI's
and the Debtor's respective preferences for utilization of the
group's tax losses may conflict.
In addition, on October 2, Judith Haberkorn, Ruth Owades, Jesse
Arnelle, James Marley and John Roberts resigned from the AHI
Board. Messrs. Stead, Sellers and Michael D. Lockhart, as
Chairman, remain as Directors.
Based in Lancaster, Pennsylvania, Armstrong World Industries, Inc.
-- http://www.armstrong.com/-- the major operating subsidiary of
Armstrong Holdings, Inc., designs, manufactures and sells interior
floor coverings and ceiling systems, around the world.
The Company and its debtor-affiliates filed for chapter 11
protection on December 6, 2000 (Bankr. Del. Case No. 00-04469).
Stephen Karotkin, Esq., at Weil, Gotshal & Manges LLP, and Russell
C. Silberglied, Esq., at Richards, Layton & Finger, P.A.,
represent the Debtors in their restructuring efforts. The Debtors
tapped the Feinberg Group for analysis, evaluation, and treatment
of personal injury asbestos claims.
Mark Felger, Esq. and David Carickhoff, Esq., at Cozen and
O'Connor, and Robert Drain, Esq., Andrew Rosenberg, Esq., and
Alexander Rohan, Esq., at Paul, Weiss, Rifkind, Wharton &
Garrison, represent the Official Committee of Unsecured Creditors.
The Creditors Committee tapped Houlihan Lokey for financial and
investment advice. The Official Committee of Asbestos Personal
Injury Claimant hired Ashby & Geddes as counsel.
When the Debtors filed for protection from their creditors, they
listed $4,032,200,000 in total assets and $3,296,900,000 in
liabilities. The Bankruptcy Court confirmed AWI's plan on
Nov. 18, 2003. The District Court Judge Robreno confirmed AWI's
Modified Plan on Aug. 14, 2006. The Clerk entered the formal
written confirmation order on Aug. 18, 2006. (Armstrong
Bankruptcy News, Issue No. 102; Bankruptcy Creditors' Service,
Inc., http://bankrupt.com/newsstand/or 215/945-7000).
* * *
As reported in the Troubled Company Reporter on Oct. 2, 2006
Standard & Poor's Ratings Services assigned its 'BB' bank loan
rating to the proposed $1.1 billion senior secured bank facility
of Armstrong World Industries Inc., based on preliminary terms and
conditions.
At the same time, Standard & Poor's assigned a '2' recovery
rating, indicating the likelihood of a substantial (80%-100%)
recovery of principal in the event of a payment default.
A Standard & Poor's credit analyst said "We expect the outlook to
be stable."
Moody's Investors Service has rated Armstrong World Industries,
Inc. new credit facility Ba2 and assigned a Corporate Family
Rating of Ba2. The ratings outlook is stable.
ASPECT SOFTWARE: Moody's Assigns Loss-Given-Default Ratings
-----------------------------------------------------------
In connection with Moody's Investors Service's implementation of
its new Probability-of-Default and Loss-Given-Default rating
methodology for the U.S. Technology Software sectors this week,
the rating agency confirmed its B2 Corporate Family Rating for
Aspect Software Inc.
Additionally, Moody's revised or held its probability-of-default
ratings and assigned loss-given-default ratings on these loans and
bond debt obligations:
Projected
Old POD New POD LGD Loss-Given
Debt Issue Rating Rating Rating Default
---------- ------- ------- ------ ----------
$50 Million
Senior Secured
Revolving Credit
Facility due 2010 B2 Ba3 LGD3 32%
$775 Million
Senior Secured
First Lien
due 2011 B2 Ba3 LGD3 32%
$385 Million
Senior Secured
Second Lien
due 2012 Caa1 Caa1 LGD5 85%
Moody's explains that current long-term credit ratings are
opinions about expected credit loss, which incorporate both the
likelihood of default and the expected loss in the event of
default. The LGD rating methodology will disaggregate these two
key assessments in long-term ratings. The LGD rating methodology
will also enhance the consistency in Moody's notching practices
across industries and will improve the transparency and accuracy
of Moody's ratings as Moody's research has shown that credit
losses on bank loans have tended to be lower than those for
similarly rated bonds.
Probability-of-default ratings are assigned only to issuers, not
specific debt instruments, and use the standard Moody's alpha-
numeric scale. They express Moody's opinion of the likelihood
that any entity within a corporate family will default on any of
its debt obligations.
Loss-given-default assessments are assigned to individual rated
debt issues -- loans, bonds, and preferred stock. Moody's opinion
of expected loss are expressed as a percent of principal and
accrued interest at the resolution of the default, with
assessments ranging from LGD1 (loss anticipated to be 0% to 9%) to
LGD6 (loss anticipated to be 90% to 100%).
Aspect Software Inc. is headquartered in Westford, Massachusetts.
The company develops, markets, licenses and supports an end-to-
end, integrated and unified suite of contact center software
applications.
BELDEN CDT: Moody's Assigns Loss-Given-Default Ratings
------------------------------------------------------
In connection with Moody's Investors Service's implementation
of its new Probability-of-Default and Loss-Given-Default
rating methodology, the rating agency confirmed its Ba2 Corporate
Family Rating for Belden CDT Inc. and its B1 rating on the
company's $110 million Unsecured Subordinated Convertible Note due
2023. Moody's assigned those debentures an LGD5 rating suggesting
noteholders will experience a 89% loss in case of default.
Moody's explains that current long-term credit ratings are
opinions about expected credit loss, which incorporate both the
likelihood of default and the expected loss in the event of
default. The LGD rating methodology will disaggregate these two
key assessments in long-term ratings. The LGD rating methodology
will also enhance the consistency in Moody's notching practices
across industries and will improve the transparency and accuracy
of Moody's ratings as Moody's research has shown that credit
losses on bank loans have tended to be lower than those for
similarly rated bonds.
Probability-of-default ratings are assigned only to issuers, not
specific debt instruments, and use the standard Moody's alpha-
numeric scale. They express Moody's opinion of the likelihood
that any entity within a corporate family will default on any of
its debt obligations.
Loss-given-default assessments are assigned to individual rated
debt issues -- loans, bonds, and preferred stock. Moody's opinion
of expected loss are expressed as a percent of principal and
accrued interest at the resolution of the default, with
assessments ranging from LGD1 (loss anticipated to be 0% to 9%) to
LGD6 (loss anticipated to be 90% to 100%).
Headquartered in St. Louis, Missouri, Belden CDT Inc. (NYSE: BDC)
-- http://www.belden.com/-- is a U.S.-based manufacturer of high-
speed electronic cables and focuses on products for specialty
electronics and data networking, including connectivity.
BELLAIRE GENERAL: Chapter 7 Trustee Hires Commerce Restructuring
----------------------------------------------------------------
The U.S Bankruptcy Court for the Southern District of Texas
gave Janet S. Northup, the Chapter 7 trustee appointed in
Bellaire General Hospital, LP's liquidation proceeding, permission
to employ Commerce Restructuring Company, Inc.
The firm is expected to:
a) catalogue and store the Debtor's patient, x-ray and other
related medical records;
b) contact the Debtor's former patients to notify them that
their medical records are available to be claimed;
c) handle the return of medical records to the Debtor's
former patients; and
d) destroy any unclaimed medical records.
The Trustee disclosed that it will pay the firm $28,373.50 for its
services.
The firm discloses that it will charge the Debtor's patients
these fees:
Patient request: $41 plus postage.
Third party request: $41 plus $0.50 per page beyond the
first 10 pages plus postage
Third party film request: $15 per film plus postage
Affidavit of no records found: $25 plus postage
Evan Hughes, a president of the firm, assured the Court that his
firm does not hold any interest adverse to the Debtor's estates
and is a "disinterested person" as that term is defined in Section
101(14) of the Bankruptcy Code.
Mr. Hughes can be reached at:
Evan Hughes
Commerce Restructuring Company, Inc.
12335 Kingsride, Suite 385
Houston, Texas 77024
Tel: (713) 589-4808
Fax: (713) 456-2939
Headquartered in Houston, Texas, Bellaire General Hospital, L.P.
-- http://www.bellairemedicalcenter.com/-- operates a hospital.
The Company filed for chapter 11 protection on January 3, 2005
(Bankr. S.D. Tex. Case No. 05-30089). Daniel F. Patchin, Esq., at
McClain, Leppert & Maney, P.C. represents the Debtor. When the
Debtor filed for protection from its creditors, it listed
estimated assets and debts of $10 million to $50 million. The
Court converted the Debtor's chapter 11 case to a chapter 7
liquidation proceeding on April 29, 2005. The hospital's secured
creditors -- Columbia Hospital of Houston and GE Credit Corp. --
decided to foreclose on the hospital's property after efforts to
auction off the assets failed. Janet S. Casciato-Northrup is the
Court appointed Chapter 7 Trustee. Blake E. Rizzo, Esq., and
David Ronald Jones, Esq., at Porter & Hedges LLP, represent the
Chapter 7 Trustee.
BGF INDUSTRIES: Moody's Assigns Loss-Given-Default Ratings
----------------------------------------------------------
In connection with Moody's Investors Service's implementation
of its new Probability-of-Default and Loss-Given-Default
rating methodology, the rating agency confirmed its Caa2 Corporate
Family Rating for BGF Industries. and upgraded its
Ca rating on $86.7 million Senior Subordinated Note due 2009
to Caa3. Moody's assigned those debentures an LGD4 rating
suggesting noteholders will experience a 67% loss in case
of default.
Moody's explains that current long-term credit ratings are
opinions about expected credit loss, which incorporate both the
likelihood of default and the expected loss in the event of
default. The LGD rating methodology will disaggregate these two
key assessments in long-term ratings. The LGD rating methodology
will also enhance the consistency in Moody's notching practices
across industries and will improve the transparency and accuracy
of Moody's ratings as Moody's research has shown that credit
losses on bank loans have tended to be lower than those for
similarly rated bonds.
Probability-of-default ratings are assigned only to issuers, not
specific debt instruments, and use the standard Moody's alpha-
numeric scale. They express Moody's opinion of the likelihood
that any entity within a corporate family will default on any of
its debt obligations.
Loss-given-default assessments are assigned to individual rated
debt issues -- loans, bonds, and preferred stock. Moody's opinion
of expected loss are expressed as a percent of principal and
accrued interest at the resolution of the default, with
assessments ranging from LGD1 (loss anticipated to be 0% to 9%) to
LGD6 (loss anticipated to be 90% to 100%).
Headquartered in Greensboro, North Carolina, BGF Industries, Inc.
-- http://www.bgf.com/-- manufactures woven and non-woven glass
fiber fabrics in North America. The Company also produces other
high performance fabrics.
BRODER BROS: Moody's Confirms B1 Corporate Family Rating
--------------------------------------------------------
In connection with Moody's Investors Service's implementation of
its new Probability-of-Default and Loss-Given-Default rating
methodology for the U.S. and Canadian Retail sector, the rating
agency confirmed its B1 Corporate Family Rating for Broder Bros.,
Co., and upgraded to B2 its B3 rating on the company's
$225 million senior unsecured notes. Additionally, Moody's
assigned an LGD5 rating to those bonds, suggesting noteholders
will experience a 73% loss in the event of a default.
Moody's explains that current long-term credit ratings are
opinions about expected credit loss, which incorporate both the
likelihood of default and the expected loss in the event of
default. The LGD rating methodology will disaggregate these two
key assessments in long-term ratings. The LGD rating methodology
will also enhance the consistency in Moody's notching practices
across industries and will improve the transparency and accuracy
of Moody's ratings as Moody's research has shown that credit
losses on bank loans have tended to be lower than those for
similarly rated bonds.
Probability-of-default ratings are assigned only to issuers, not
specific debt instruments, and use the standard Moody's
alpha-numeric scale. They express Moody's opinion of the
likelihood that any entity within a corporate family will default
on any of its debt obligations.
Loss-given-default assessments are assigned to individual rated
debt issues -- loans, bonds, and preferred stock. Moody's opinion
of expected loss are expressed as a percent of principal and
accrued interest at the resolution of the default, with
assessments ranging from LGD1 (loss anticipated to be 0% to 9%) to
LGD6 (loss anticipated to be 90% to 100%).
Headquartered in Trevose, Pennsylvania, Broder Bros., Co.
-- http://www.broderbrosco.com/-- owns and operates three leading
brands in the imprintable sportswear industry: "Broder," "Alpha,"
and "NES." The Company operates 16 distribution centers
throughout the United States and offers all of the leading
industry product styles including those manufactured by Gildan,
Hanes, Jerzees, Fruit of the Loom, and Anvil, as well as many
exclusive brands including Adidas Golf, Champion and Columbia
Sportswear. The Company also develops proprietary brands
including Devon & Jones, Chestnut Hill, Authentic Pigment,
Harriton, HYP, Desert Wash, Great Republic and Harvard Square.
Broder Bros. Co. was purchased in May 2000 by Bain Capital, a
private equity investment firm. Subsequent to Bain's purchase,
the Company expanded its geographic reach and market share through
the acquisitions of St. Louis T's in 2000, Full Line Distributors
and Gulf Coast Sportswear in 2001, T-Shirts & More and Alpha Shirt
Company in 2003, and NES Clothing Company in 2004.
BROOKLYN HOSPITAL: Secures PACS Equipment from CIT Healthcare
-------------------------------------------------------------
The Honorable Carla E. Craig of the U.S. Bankruptcy Court for the
Eastern District of New York authorized The Brooklyn Hospital
Center and Caledonian Health Center, Inc., to enter into a Picture
Archiving and Communications System lease with CIT Healthcare LLC.
The Picture Archiving and Communications System, or PACS, enables
images such as X-rays and scans to be stored electronically and
viewed on video screens. This digital imaging technology allows
for a near filmless process with all the flexibility of digital
systems.
CIT Healthcare, an affiliate of CIT Lending, the Debtors' DIP
lender, agreed to lease to Brooklyn Hospital the equipment needed
to capture images and to store and run the PACS software.
The Debtors and CIT lending will amend the terms of their DIP loan
agreement to incorporate the PACS lease. The salient terms of the
PACS lease include:
Lease Facility Amount: Up to $1,500,000.00
Leased Equipment: Infinitt Picture Archiving
Communication System
Lease Term: 4 years
Base Lease Rental Payments: TBHC will be required to
make monthly payments due in
arrears as follows:
$37,328 per month plus
sales, use or similar tax if
applicable.
Among other things, the Debtors' DIP loan agreement with CIT
Lending will be amended to provide CIT with the ability to reserve
$750,000 from the revolving loan availability to cover its
exposure under the PACS Lease. The Debtor will also have the
option to purchase all of the PACS equipment for $1 upon
expiration of the lease and payment of all sums due under the
lease.
Lawrence M. Handelsman, Esq., at Stroock & Stroock & Lavan LLP,
tells the Court that the improved efficiencies of the PACS system
will not only provide direct economic benefit to the Debtors, but
would also improve the quality of healthcare that they provide and
reduce their potential malpractice exposure through longer-term
maintenance of radiological images. Mr. Handelsman adds that the
savings realized from the elimination of film and film storage
costs will pay for the PACS.
Headquartered in Brooklyn, New York, The Brooklyn Hospital Center
-- http://www.tbh.org/-- provides a variety of inpatient and
outpatient services and education programs to improve the well
being of its community. The Debtor, together with Caledonian
Health Center, Inc., filed for chapter 11 protection on Sept. 30,
2005 (Bankr. E.D.N.Y. Case No. 05-26990). Lawrence M. Handelsman,
Esq., and Eric M. Kay, Esq., at Stroock & Stroock & Lavan LLP
represent the Debtors in their restructuring efforts. Glenn B.
Rice, Esq., at Otterbourg, Steindler, Houston & Rosen, P.C.,
represents the Official Committee of Unsecured Creditors. Mark
Dominick Alvarez at Alvarez & Marsal, LLC, serves as the
Committee's financial advisor. When the Debtors filed for
protection from their creditors, they listed $233,000,000 in
assets and $337,000,000 in debts.
BUMBLE BEE: Moody's Assigns B1 Corporate Family Ratings
-------------------------------------------------------
In connection with Moody's Investors Service's implementation of
its new Probability-of-Default and Loss-Given-Default rating
methodology for the U.S. Consumer Products, Beverage, Toy, Natural
Product Processors, Packaged Food Processors and Agricultural
Cooperative sectors, the rating agency assigned its B1 Corporate
Family Rating for Bumble Bee(R) Foods.
Additionally, Moody's revised or held its probability-of-default
ratings and assigned loss-given-default ratings on these loans and
bond debt obligations:
Projected
Old POD New POD LGD Loss-Given
Debt Issue Rating Rating Rating Default
---------- ------- ------- ------ ----------
$75M Revolving
Credit due 2011 Ba3 Ba3 LGD2 29%
$200M Term Loan B
due 2012 Ba3 Ba3 LGD2 29%
Moody's explains that current long-term credit ratings are
opinions about expected credit loss, which incorporate both the
likelihood of default and the expected loss in the event of
default. The LGD rating methodology will disaggregate these two
key assessments in long-term ratings. The LGD rating methodology
will also enhance the consistency in Moody's notching practices
across industries and will improve the transparency and accuracy
of Moody's ratings as Moody's research has shown that credit
losses on bank loans have tended to be lower than those for
similarly rated bonds.
Probability-of-default ratings are assigned only to issuers, not
specific debt instruments, and use the standard Moody's
alpha-numeric scale. They express Moody's opinion of the
likelihood that any entity within a corporate family will default
on any of its debt obligations.
Loss-given-default assessments are assigned to individual rated
debt issues -- loans, bonds, and preferred stock. Moody's opinion
of expected loss are expressed as a percent of principal and
accrued interest at the resolution of the default, with
assessments ranging from LGD1 (loss anticipated to be 0% to 9%) to
LGD6 (loss anticipated to be 90% to 100%).
Bumble Bee(R) Foods was founded in 1899. Bumble Bee has over
1,000 employees and is an international company selling canned
tuna and salmon throughout the world under the Bumble Bee Label
and in Canada under the Clover Leaf brand name. Bumble Bee also
has canning facilities in Mayaguez, Puerto Rico; and Santa Fe
Springs, Ca.
CAPE SYSTEMS: June 30 Equity Deficit Increases to $24,480,000
-------------------------------------------------------------
Cape Systems Group, Inc.'s balance sheet at June 30, 2006, showed
a $24,480,000 total stockholders' deficit resulting from total
assets of $2,398,000 and total liabilities of $26,878,000. The
company's total stockholders' deficiency as of Sept. 30, 2005,
stood at $24,310,000.
The company's balance sheet at June 30, 2006, also showed strained
liquidity with $1,082,000 in total current assets and $26,878,000
in total current liabilities.
For the three months ended June 30, 2006, the company incurred a
$676,000 net loss on $863,000 of revenues, compared to a
$1,353,000 net loss on $682,000 of revenues for the same quarter
last year.
Full-text copies of the company's financial statements for the
quarter ended June 30, 2006, is available for free
at http://researcharchives.com/t/s?12e8
Headquartered in South Plainfield, New Jersey, Cape Systems Group
Inc. -- http://www.vertexinteractive.com/-- provides supply chain
management technologies and services in North America and the
United Kingdom. Its offerings include enterprise software systems
and applications, and software integration solutions that enable
customers to manage their order inventory and warehouse management
needs, consultative services, and software and hardware service
and maintenance.
CARLTON COVE: Wants Maynard Cooper as Bankruptcy Counsel
--------------------------------------------------------
Carlton Cove Inc. asks the U.S. Bankruptcy Court for the Northern
District of Alabama, for permission to employ Maynard, Cooper &
Gale, PC, as its bankruptcy counsel, nunc pro tunc to
Aug. 9, 2006.
Maynard Cooper is expected to:
a) give the Debtor legal advice with respect to its powers
and duties as debtor-in-possession;
b) negotiate and formulate a plan of reorganization under
chapter 11 which will be acceptable to its creditors;
c) deal with ongoing litigation in this and other forums;
d) prepare the necessary petition, answers, orders, reports
and other legal papers; and
e) provide all other services which may be necessary.
The Debtor has paid the firm a retainer of $100,000.
The firm discloses its professionals billing rates:
Professionals Designation Hourly Rate
------------- ----------- -----------
Robert H. Adams, Esq. Attorney $330
Jayna P. Lamar, Esq. Attorney $330
Doug Williams, Esq. Attorney $315
Kimberly B. Glass, Esq. Attorney $245
Brian Walding, Esq. Attorney $210
Katrina Collins Paralegal $150
Teresa Adams Paralegal $110
Maynard Cooper assures the Court that it does not hold any
interest adverse to the Debtor's estates and is a "disinterested
person" as that term is defined in Section 101(14) of the
Bankruptcy Code.
The firm can be reached at:
Maynard, Cooper & Gale, P.C.
Birmingham Office
2400 AmSouth/Harbert Plaza
1901 Sixth Avenue North
Birmingham, AL 35203
Tel: (205) 254-1000
Fax: (205) 254-1999
http://www.mcglaw.com/
Headquartered in Huntsville, Alabama, Carlton Cove, Inc. --
http://carltoncove.org/-- offers independent living homes and
apartments, assistance with daily living activities, dementia care
and skilled nursing care. The Company filed for chapter 11
protection on Aug. 9, 2006 (Bankr. N.D. Ala. Case No. 06-81553).
Robert H. Adams, Esq., at Maynard Cooper & Gale PC, represents the
Debtor. When the Debtor filed for protection from its creditors,
it listed total assets of $41,992,164 and total
debts of $78,615,718.
CARMIKE CINEMAS: Moody's Confirms B2 Corporate Family Rating
------------------------------------------------------------
Moody's Investors Service confirmed the B2 corporate family rating
of Carmike Cinemas, Inc. The outlook is now stable.
The ratings confirmation is based on Carmike's completion of the
restatement process and filing of all its financial statements.
The confirmation incorporates the company's recent bank amendment,
which reduces the risk of non-compliance with bank financial
covenants.
Carmike's B2 corporate family rating reflects high leverage of
approximately 6.5 times debt-to-EBITDA, sensitivity to product
from movie studios, lack of scale, and a weak industry growth
profile, as well as lingering concerns over financial reporting.
Carmike's dominant position in its targeted smaller markets and
strong concession margins, coupled with Moody's expectations for a
return to modestly positive free cash flow from operations in
2007, support the rating.
The stable outlook assumes bank covenant compliance and continued
timely filing of financial statements. If further financial
reporting problems surface and result in a delay in the filing of
financial statements or Carmike cannot comply with bank covenants,
Moody's would consider a downgrade or negative outlook.
The magnitude of leverage reduction required to sustain a B1
rating constrains upward potential, but Moody's would consider a
positive outlook with a track record of timely financial
statements and no material weaknesses, as well as expectations for
sustainable leverage below five times.
These are Moody's rating actions.
* Carmike Cinemas, Inc.
-- Confirmed B2 Corporate Family Rating
-- Confirmed B3 Probability of Default Rating
-- Confirmed B1 Senior Secured Bank Credit Facility and LGD
2, 29%
-- Outlook, Changed To Stable from Rating Under Review
Headquartered in Columbus, Georgia, Carmike Cinemas operates
approximately 2,500 screens and 300 theaters. Its annual revenue
is approximately $500 million.
CELESTICA INT'L: Moody's Assigns Loss-Given-Default Ratings
-----------------------------------------------------------
In connection with Moody's Investors Service's implementation
of its new Probability-of-Default and Loss-Given-Default rating
methodology, the rating agency confirmed its Ba3 Corporate
Family Rating for Celestica International.
Additionally, Moody's revised its probability-of-default ratings
and assigned loss-given-default ratings on these loans and bond
debt obligations:
Projected
Old POD New POD LGD Loss-Given
Debt Issue Rating Rating Rating Default
---------- ------- ------- ------ ----------
$500m 7.875%
Senior Subor.
Notes due 2011 B2 B2 LGD5 87%
$250m 7.5%
Senior Subor.
Notes due 2013 B2 B2 LGD5 87%
Moody's explains that current long-term credit ratings are
opinions about expected credit loss, which incorporate both the
likelihood of default and the expected loss in the event of
default. The LGD rating methodology will disaggregate these two
key assessments in long-term ratings. The LGD rating methodology
will also enhance the consistency in Moody's notching practices
across industries and will improve the transparency and accuracy
of Moody's ratings as Moody's research has shown that credit
losses on bank loans have tended to be lower than those for
similarly rated bonds.
Probability-of-default ratings are assigned only to issuers, not
specific debt instruments, and use the standard Moody's alpha-
numeric scale. They express Moody's opinion of the likelihood
that any entity within a corporate family will default on any of
its debt obligations.
Loss-given-default assessments are assigned to individual rated
debt issues -- loans, bonds, and preferred stock. Moody's opinion
of expected loss are expressed as a percent of principal and
accrued interest at the resolution of the default, with
assessments ranging from LGD1 (loss anticipated to be 0% to 9%) to
LGD6 (loss anticipated to be 90% to 100%).
Celestica -- http://www.celestica.com/-- provides electronics
manufacturing services. The Company operates electronic networks
in Asia, Europe and the United States.
CENTRIX FINANCIAL: Hires Squire Sanders as Bankruptcy Counsel
-------------------------------------------------------------
The Hon. Gregg W. Zive of the U.S. Bankruptcy Court for the
District of Nevada authorized Centrix Financial LLC and its
debtor-affiliates to retain Squire, Sanders & Dempsey LLP as their
bankruptcy counsel.
Squire Sanders is expected to:
a) advise the Debtors with respect to their powers and
duties as debtors-in-possession in the continued
management and operation of their business and property;
b) attend meetings and negotiate with representatives of
creditors and other parties in interest and advising and
consulting on the conduct of these Chapter 11 Cases,
including all of the legal and administrative
requirements of operating in Chapter 11;
c) assist the Debtors with the preparation of their
Schedules of Assets and Liabilities and Statements of
Financial Affairs;
d) advise the Debtors in connection with any contemplated
sales of assets or business combinations, including the
negotiation of asset, stock, purchase, merger or joint
venture agreements, formulate and implement appropriate
procedures with respect to the closing of any such
transactions, and counseling the Debtors in connection
with such transactions;
e) advise the Debtors in connection with any post-petition
financing and cash collateral arrangements and
negotiating and drafting documents, providing advice and
counsel with respect to pre-petition financing
arrangements, and negotiating and drafting documents;
f) advise the Debtors on matters relating to the evaluation
of the assumption, rejection or assignment of unexpired
leases and executory contracts;
g) advise the Debtors with respect to legal issues arising
in or relating to the Debtors' ordinary course of
business including attendance at senior management
meetings, meetings with the Debtors' financial and
turnaround advisors and meetings of the board of
directors;
h) take all necessary action to protect and preserve the
Debtors' estates, including the prosecution of actions on
their behalf, the defense of any actions commenced
against them, negotiations concerning all litigation in
which the Debtors are involved and objecting to claims
filed against the Debtors' estates;
i) prepare, on the Debtors' behalf, all motions,
applications, answers, orders, reports and papers
necessary to the administration of the estates;
j) negotiate and prepare, on the Debtors' behalf, a plan of
reorganization, disclosure statement and all related
agreements or documents and taking any necessary action
on behalf of the Debtors to obtain confirmation of such
plan;
k) attend meetings with third parties and participate in
negotiations;
l) appear before the Bankruptcy Court, any appellate courts
and the United States Trustee and protect the interests
of the Debtors' estates before such courts and the United
States Trustee; and
m) perform all other necessary legal services and providing
all other necessary legal advice to the Debtors in
connection with their Chapter 11 cases.
The customary hourly rates for Squire Sanders' professionals are:
Designation Hourly Rate
----------- -----------
Partners $790 to $275
Associates $430 to $170
Legal Assistants $240 to $30
Squire Sanders and the Debtors have agreed that Squire Sanders'
bundled rate structure will apply to this case and, therefore, the
firm will not seek to be separately compensated for certain staff,
clerical and resource charges.
The Debtors tell the Court that Squire Sanders has received a
retainer in the amount of $100,000 in connection with this
engagement.
To the best of the Debtors' knowledge, Squire Sanders does not
hold or represent any interest adverse to the Debtors' estates and
is a "disinterested person," as that term is defined in Section
101(14) of the Bankruptcy Code.
Headquartered in Reno, Nevada, Centrix Financial LLC provides
subprime auto loans. Centrix and its affiliates filed separate
Chapter 11 petitions on Sept. 19, 2006 (Bankr. Dist. Nev. Lead
Case No.: 06-50631). CMGN, LLC, another affiliate, filed a
separate Chapter 11 petition on Sept. 4, 2006. The Debtors
estimated more than $100 million in assets and debts when they
filed for bankruptcy.
IFC Credit Corp, Suntrust Leasing and Wells Fargo Equipment
Finance, three creditors of Centrix Financial filed involuntary
chapter 11 petition against the Debtors on Sept. 15, 2006 (Bankr
Dist. Colo. Case No:06-16403) The Creditors claim they are owed
more than $4.6 million. Lee M. Kutner, Esq., at Kutner Miller,
P.C., and David von Gunten, Esq., at Von Gunten Law LLC, represent
the petitioners.
CENTRIX FINANCIAL: Turns to Raymond James for Financial Advice
--------------------------------------------------------------
The Hon. Gregg W. Zive of the U.S. Bankruptcy Court for the
District of Nevada allowed Centrix Financial LLC and its debtor-
affiliates to retain, on an interim basis, Raymond James &
Associates, Inc., as their financial advisor and investment
banker.
The Debtors have continuously employed Raymond James since
Dec. 13, 2005 to provide a variety of financial-advisory and
investment banking services. By virtue of this previous
engagements, the Debtors say Raymond James is familiar with the
books, records, financial affairs and other data they maintain and
is well qualified to continue to provide those services.
Raymond James will:
a) provide the Debtors with general restructuring advice and
advise the Debtors in their consideration of a variety of
potential business arrangements or undertakings,
including, without limitation, Financing Transactions,
Restructuring Transactions or Business Combination
Transactions;
b) review and analyze the Debtors' business, operations,
properties, financial condition and prospects;
c) evaluate the Debtors' debt capacity, advise the Debtors
generally as to available financing and assist in the
determination of an appropriate capital structure;
d) assist the Debtors in evaluating potential Transaction
alternatives, including debtor-in-possession financing
or exit financing for the Debtors;
e) assist the Debtors in preparing documentation within
Raymond James' area of expertise that is required in
connection with a Transaction;
f) assist the Debtors in identifying financial or strategic
institutional investors or other investors who may be
interested in participating in the Transaction;
g) contact Interested Parties which Raymond James, after
consultation with the Debtors' management, believes meet
certain industry, financial, and strategic criteria and
assist the Debtors in negotiating and structuring a
transaction;
h) advise the Debtors as to potential mergers or
acquisitions, and the sale or other disposition of any of
the Debtors' assets or businesses;
i) advise the Debtors on tactics and strategies for
negotiating with various groups of holders of the Debtors'
debt or other claims of the Debtors;
j) provide financial advice and assistance to the Debtors in
developing and obtaining confirmation of a Plan;
k) advise the Debtors on the timing, nature and terms of any
new securities, other considerations or other inducements
to be offered to its Stakeholders in connection with any
Restructuring Transaction; and
l) participate in the Debtors' board of directors meetings as
determined by the Debtors to be appropriate, and provide
periodic status reports and advice to the board with
respect to matters falling with in the scope of Raymond
James' retention.
The compensation proposed to be paid to Raymond James under the
Engagement Letter include:
-- a $110,000 monthly advisory fee.
-- a Financing Fee equal to the greater of $500,000 or the
sum of these amounts:
* 6% of the Aggregate Gross Proceeds received for any
form of equity securities, or any debt securities or
loans or lines of credit convertible into equity
securities or accompanied by warrants for the
issuance of equity securities or otherwise linked to
equity securities, issued by the Debtors or any
affiliate of the Debtors in connection with any
Financing Transaction; and
* 3% of the Aggregate Gross Proceeds received for any
form of debt securities issued or obtained by the
Debtors or any affiliate of the Debtors with any
Financing Transaction
-- a Restructuring Transaction Fee in an amount equal to
the greater of $1,500,000 or 2% of the face amount of the
Existing Obligations that are restructured, modified,
amended, forgiven or otherwise compromised; and
-- a Business Combination Transaction Fee equal to the
greater of $1,500,000 or 2.5% of any consideration paid,
payable or received.
Raymond James has received a retainer in the amount of $110,000,
in connection with this engagement. The retainer amount will be
maintained at $110,000 during the pendency of the Debtors'
bankruptcy cases.
Rajinder Singh, at Raymond James, assures the Court that his firm
does not hold or represent an interest adverse to the estates and
is a "disinterested persons" under Section 101(14) of Bankruptcy
Code.
Headquartered in Reno, Nevada, Centrix Financial LLC provides
subprime auto loans. Centrix and its affiliates filed separate
Chapter 11 petitions on Sept. 19, 2006 (Bankr. Dist. Nev. Lead
Case No. 06-50631). CMGN, LLC, another affiliate, filed a
separate Chapter 11 petition on Sept. 4, 2006. The Debtors
estimated more than $100 million in assets and debts when they
filed for bankruptcy.
IFC Credit Corp, Suntrust Leasing and Wells Fargo Equipment
Finance, three creditors of Centrix Financial filed involuntary
chapter 11 petition against the Debtors on Sept. 15, 2006 (Bankr
Dist. Colo. Case No:06-16403) The Creditors claim they are owed
more than $4.6 million. Lee M. Kutner, Esq., at Kutner Miller,
P.C., and David von Gunten, Esq., at Von Gunten Law LLC, represent
the petitioners.
CG MULTIFAMILY: Judge Brown Dismisses Chapter 11 Case
-----------------------------------------------------
The Hon. Jerry A. Brown of the U.S. Bankruptcy Court for the
Eastern District of Louisiana dismissed the chapter 11 case of
CG Multifamily-New Orleans, L.P.
Judge Brown also ordered the Debtor to submit its disbursement
information for the quarter ending Sept. 30, 2006 and remit the
appropriate fee to the Office of the U.S. Trustee.
As reported in the Troubled Company Reporter on Sept. 22, 2006,
the Debtor told the Court that it has reached an agreement in
principle with Fannie Mae, its secured lender, for modifications
and the reinstatement of their loan agreement.
Fannie Mae Indebtedness
Fannie Mae is the holder of an Amended and Restated Discount MBS
Multifamily Note dated June 14, 2004, in the amount of $65 million
executed by the Debtor in favor of GMAC Commercial Mortgage
Corporation and subsequently assigned to Fannie. The Note was
amended on Oct. 1, 2005.
The Note is secured by, among other things:
* an Amended and Restated Multifamily Mortgage, Assignment of
Rents and Security Agreement dated June 10, 2004, executed
by the Debtor and the Industrial Development Board of the
City of New Orleans, Louisiana, Inc., and subsequently
assigned by GMAC to Fannie Mae; and
* an Amended and Restated Multifamily Mortgage, Assignment of
Rents and Security Agreement dated June 10, 2004, executed
by the Debtor in favor of GMAC and subsequently assigned to
Fannie Mae.
These two agreements encumber the Debtor's real property known as
the Saulet Apartments.
The Debtor says it filed for bankruptcy when it failed to reach an
agreement with Fannie Mae concerning the use of certain insurance
proceeds belonging to the Debtor but held by Fannie Mae.
Agreement
Under the new Agreement:
a. one or more of the Debtor's partners will make an
additional equity capital contribution of $2 million to the
Debtor to be utilized in part to satisfy all of the
Debtor's prepetition and postpetition obligations; and
b. Fannie Mae will permit the Debtor to use the insurance
proceeds it holds and make other financial concessions, so
that the Debtor can perform necessary repairs to the Saulet
and allow it to be reopened to the public.
With this development, the Debtor contends that it now has the
ability and intent to satisfy all of its debts and no longer needs
reorganization under Chapter 11 of the Bankruptcy Code.
About CG Multifamily-New Orleans
Headquartered in Charleston, South Carolina, CG Multifamily-New
Orleans, L.P. owns the Saulet Apartments in New Orleans,
Louisiana. The company filed for chapter 11 protection on
June 12, 2006 (Bankr. E.D. La. Case No. 06-10533). John M.
Landis, Esq. and Michael Q. Walshe, Jr., Esq., at Stone Pigman
Walther Wittman, LLC, represents the Debtors in its restructuring
efforts. No Official Committee of Unsecured Creditors has been
appointed in the Debtor's bankruptcy proceedings. When the Debtor
filed for protection from its creditors, it estimated assets and
debts between $50 million and $100 million.
CIENA CORP: Moody's Assigns Loss-Given-Default Ratings
------------------------------------------------------
In connection with Moody's Investors Service's implementation
of its new Probability-of-Default and Loss-Given-Default
rating methodology, the rating agency upgraded its B2 Corporate
Family Rating for Ciena Corporation to B1 and confirmed its B2
rating on the company's $690 million Convertible Note due 2008.
Moody's assigned those debentures an LGD4 rating suggesting
noteholders will experience a 66% loss in case of default.
Moody's explains that current long-term credit ratings are
opinions about expected credit loss, which incorporate both the
likelihood of default and the expected loss in the event of
default. The LGD rating methodology will disaggregate these two
key assessments in long-term ratings. The LGD rating methodology
will also enhance the consistency in Moody's notching practices
across industries and will improve the transparency and accuracy
of Moody's ratings as Moody's research has shown that credit
losses on bank loans have tended to be lower than those for
similarly rated bonds.
Probability-of-default ratings are assigned only to issuers, not
specific debt instruments, and use the standard Moody's alpha-
numeric scale. They express Moody's opinion of the likelihood
that any entity within a corporate family will default on any of
its debt obligations.
Loss-given-default assessments are assigned to individual rated
debt issues -- loans, bonds, and preferred stock. Moody's opinion
of expected loss are expressed as a percent of principal and
accrued interest at the resolution of the default, with
assessments ranging from LGD1 (loss anticipated to be 0% to 9%) to
LGD6 (loss anticipated to be 90% to 100%).
Ciena Corp. - http://wwww.ciena.com/-- provides optical
telecommunications systems and related products. The Company had
$684 million in debt and capitalized operating leases outstanding
as of Jan. 31, 2006.
CITGO PETROLEUM: Affirms Commitment to General Public in U.S.
-------------------------------------------------------------
CITGO Petroleum Corporation wants to clarify inaccurate and
misleading information about it.
A most recent example was CITGO's decision to allow its supply
agreement with 7-Eleven to expire at the end of September. It was
misrepresented as a reaction by 7-Eleven to the remarks recently
made by Venezuelan President Hugo Chavez at the United Nations
General Assembly in New York.
The mutual agreement to end the contract was made three months ago
after many months of deliberation. The 7-Eleven contract did not
fit within CITGO's strategy to balance its sales volumes with its
own refinery production. Moreover, both 7-Eleven and CITGO had
informed the media of the decision long before President Chavez's
U.N. speech.
There have also been calls for a boycott of CITGO products. Such
an action could harm American businesses and the general public.
The following facts demonstrate CITGO's commitment to U.S.
consumers and the energy market:
* CITGO is incorporated in the United States and is a U.S.
company extremely proud of a heritage that goes back nearly a
century.
* CITGO was purchased by Petroleos de Venezuela, S.A. (PDVSA)
in 1990, giving the company access to the largest crude oil
reserves in the Western Hemisphere.
* Venezuela has been a reliable supplier of crude oil and
refined products to the U.S. market throughout the years.
* CITGO's policy includes maintaining and strengthening its
relationship with its customers in order to ensure that it
continues to provide quality energy products that benefit the
U.S. consumer. This is in alignment with the global energy
policy of its parent company.
* While CITGO is a major Venezuelan investment in the United
States, several American oil and gas companies either have
significant investments in Venezuela or purchase Venezuelan
crude oil to satisfy the needs of their customers. This list
includes ChevronTexaco, ConocoPhillips, Valero, and others.
* CITGO has approximately 4,000 employees in the United States
and, through a network of more than 13,000 independently
owned retail locations, CITGO indirectly employs roughly
another 100,000 people who work hard every day to help their
neighbors get where they want to go.
* Many of these dealers selected CITGO because of the fact that
its crude oil supply comes from its own hemisphere and that
is precisely one of its key strengths. Most of its
competitors, on the other hand, buy their oil from countries
where ongoing conflicts pose a tangible threat to security of
supply.
* CITGO is committed to safe and environmentally responsible
operations and the company will be investing $1.2 billion in
this key area in the coming years.
CITGO has sponsored many important activities in the communities
where it does business:
* After hurricanes Katrina and Rita, its employees in many
locations spent countless hours volunteering to help, and it
donated in excess of $2 million. At the time, it is also
instrumental in ensuring extra cargoes of gasoline from its
parent company -- roughly totaling one million barrels -- to
alleviate fuel shortages in the United States. Several U.S.
government officials have recognized CITGO's efforts in this
area.
* CITGO re-launched its heating oil program in Sept. 21 and
plans to distribute 100 million gallons of heating oil at a
40% discount in 18 states. This will potentially benefit
1.2 million people, including members of more than 200 Native
American tribes.
* CITGO recently donated $5 million to expand the Southwest
Louisiana Center for Health Services in Lake Charles, which
serves the uninsured and other people in need.
* CITGO is the largest corporate sponsor of the Muscular
Dystrophy Association and it is proud of its 21-year
relationship with this organization, to which it has
contributed more than $83 million.
When taking all these facts into account, it is clear that CITGO
remains committed to its employees, customers, marketing and
retail partners and the general public throughout the United
States.
About Citgo
Headquartered in Houston, Texas, CITGO Petroleum Corporation --
http://www.citgo.com/-- is owned by PDV America, an indirect,
wholly owned subsidiary of Petroleos de Venezuela S.A., the state-
owned oil company of Venezuela.
PDVSA is Venezuela's state oil company in charge of the
development of the petroleum, petrochemical, and coal industry, as
well as planning, coordinating, supervising, and controlling the
operational activities of its divisions, both in Venezuela and
abroad.
* * *
Standard and Poor's Ratings Services assigned a 'BB' rating on
CITGO Petroleum Corp.
Citgo carries Fitch's BB- Issuer Default Rating. Fitch also rates
the Company's $1.15 billion senior secured revolving credit
facility maturing in 2010 at 'BB+', its $700 million secured term-
loan B maturing in 2012 at 'BB+', and its senior secured notes at
'BB+'.
CJR ENTERPRISES: Case Summary & 18 Largest Unsecured Creditors
--------------------------------------------------------------
Debtor: CJR Enterprises, LLC
dba Prenatal Peek
9050 Willow Ave
Cotai, CA 94931
Bankruptcy Case No.: 06-10669
Debtor-affiliate filing separate chapter 11 petition:
Entity Case No.
------ --------
Cheryl J. Roby 06-10668
Chapter 11 Petition Date: October 3, 2006
Court: Northern District of California (Santa Rosa)
Debtor's Counsel: John H. MacConaghy, Esq.
MacConaghy and Barnier, PLC
645 1st Street West, Suite D
Sonoma, CA 95476
Tel: (707) 935-3205
Estimated Assets Estimated Debts
---------------- ---------------
CJR Enterprises LLC $50,000 to $50,000 to
$100,000 $100,000
Cheryl J. Roby $1 Million to $1 Million to
$10 Million $10 Million
A. CJR Enterprises LLC's Two Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
------ --------------- ------------
Prenatal Peek Licensing, Inc. Breach of Franchise $40,000
510 North Diamond Bar Boulevard Agreement
Diamond Bar, CA 91765
Merrill, Arnone & Jones Professional Services $1,595
3554 Round Barn Boulevard
Suite 303
Santa Rosa, CA 95403
B. Cheryl J. Roby's 16 Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
------ --------------- ------------
G&W/Great Petaluma Mill, LLC Breach of Lease $25,000
c/o Basin Street Properties Damages
201 First Street, Suite 100
Petaluma, CA 94962
KOR Commercial Properties Breach of Lease $18,460
575 West College Avenue Damages
Suite 105
Santa Rosa, CA 95401
Redwood Credit Union Visa Unsecured Credit Line $15,396
P.O. Box 79265
City of Industry, CA 91716
American Express Unsecured Credit Line $12,231
P.O. Box 0001
Los Angeles, CA 90096-0001
Cash Call Unsecured Credit Line $9,925
17360 Brookhurst Street
Fountain Valley, CA 92768
Prenatal Peek Licensing, Inc. Breach of Franchise $9,600
Damages
USAA Savings Bank Unsecured Credit Line $8,857
American Express Unsecured Credit Line $6,191
Citi Cards Unsecured Credit Line $5,454
HSBC Retail Services Credit Card $2,878
Wendy Glasgow Vacation Pay $1,870
Merrill, Arnone & Jones Professional Services $1,595
Valley Yellow Pages Trade Debt $792
Bill Me Later Unsecured Credit Line $562
Respec Tech Trade Debt $516
QCard Credit Card $359
CLUETT AMERICAN: Moody's Confirms Caa1 Corporate Family Rating
--------------------------------------------------------------
In connection with Moody's Investors Service's implementation of
its new Probability-of-Default and Loss-Given-Default rating
methodology for the U.S. and Canadian Retail sector, the rating
agency confirmed its Caa1 Corporate Family Rating for Cluett
American Corp.
Additionally, Moody's revised or held its probability-of-default
ratings and assigned loss-given-default ratings on these loans and
bond debt obligations:
Projected
Old POD New POD LGD Loss-Given
Debt Issue Rating Rating Rating Default
---------- ------- ------- ------ ----------
Senior subordinated
notes Caa3 Caa2 LGD4 63%
Preferred stock Ca Caa3 LGD6 100%
Moody's explains that current long-term credit ratings are
opinions about expected credit loss, which incorporate both the
likelihood of default and the expected loss in the event of
default. The LGD rating methodology will disaggregate these two
key assessments in long-term ratings. The LGD rating methodology
will also enhance the consistency in Moody's notching practices
across industries and will improve the transparency and accuracy
of Moody's ratings as Moody's research has shown that credit
losses on bank loans have tended to be lower than those for
similarly rated bonds.
Probability-of-default ratings are assigned only to issuers, not
specific debt instruments, and use the standard Moody's
alpha-numeric scale. They express Moody's opinion of the
likelihood that any entity within a corporate family will default
on any of its debt obligations.
Loss-given-default assessments are assigned to individual rated
debt issues -- loans, bonds, and preferred stock. Moody's opinion
of expected loss are expressed as a percent of principal and
accrued interest at the resolution of the default, with
assessments ranging from LGD1 (loss anticipated to be 0% to 9%) to
LGD6 (loss anticipated to be 90% to 100%).
Cluett American Corp. primarily designs, manufactures and markets
socks in the United States, as well as licenses its proprietary
trademarks and trade names domestically and internationally. The
Company owns numerous trademarks, including GOLD TOE, SILVER TOE,
ARROW and its related trade names such as DOVER, TOURNAMENT, LADY
ARROW, FAIRFIELD BY ARROW and FRIDAY'S BY CLUETT. The Company has
38 licensees in various countries, which market, manufacture and
sell apparel and non-apparel products bearing the ARROW trademark
in various channels of distribution.
COMMSCOPE INC: Updates 2006 Third and Fourth Quarters Guidance
--------------------------------------------------------------
CommScope, Inc.'s management provided updates to its guidance for
the third quarter and fourth quarter of 2006:
-- For the third quarter of 2006, revenue is expected to be in
the range of $460-$470 million and operating margin is
expected to be in the 13% to 14% range, excluding special
items. Stronger-than-expected shipments in all product
segments, especially Enterprise, drove the improved sales
guidance. The Company's previous third quarter guidance was
revenue in the $420-$435 million range and operating margin
in the 10.5% to 11.5% range, excluding special items.
-- The Company expects the third quarter book-to-bill ratio to
be less than one primarily due to stronger-than-expected
third quarter shipments. As a result, for the fourth
quarter the Company expects the slowdown in shipments of
Enterprise and Carrier products to be greater than normal
seasonal trends.
-- For the fourth quarter of 2006, revenue is expected to be in
the range of $370 to $400 million and operating margin is
expected to be in the 9% to 10% range, excluding special
items.
"We are pleased with our expected third quarter performance,"
Frank Drendel, chairman and chief executive officer, said. "We
updated our revenue and operating income guidance primarily due to
the strong third quarter sales volume. While we do not expect to
duplicate this strength in the fourth quarter, we expect to
deliver solid year-over-year growth in sales and operating income.
Sale of Real Estate
The Company also announced that Connectivity Solutions
Manufacturing, Inc., its wholly owned subsidiary, has closed on an
agreement to sell real estate consisting of approximately 70 acres
and a 580,000 sq. ft. building at the CSMI manufacturing facility
located in Omaha, Nebraska. The sales price for the land and
building was approximately $11 million. The sale will be recorded
in the fourth quarter of 2006.
Based in Hickory, North Carolina, CommScope, Inc. (NYSE:CTV)
-- http://www.commscope.com/-- designs and manufactures "last
mile" cable and connectivity solutions for communication networks.
Through its SYSTIMAX(R) Solutions(TM) and Uniprise(R) Solutions
brands CommScope is the global leader in structured cabling
systems for business enterprise applications. It is also the
world's largest manufacturer of coaxial cable for Hybrid Fiber
Coaxial applications. Backed by strong research and development,
CommScope combines technical expertise and proprietary technology
with global manufacturing capability to provide customers with
high-performance wired or wireless cabling solutions.
COMMSCOPE INC: Moody's Assigns Loss-Given-Default Ratings
---------------------------------------------------------
In connection with Moody's Investors Service's implementation
of its new Probability-of-Default and Loss-Given-Default
rating methodology, the rating agency confirmed its Ba2 Corporate
Family Rating for CommScope Inc. and upgraded its B1 rating on the
company's $250 million Senior Subordinated Note due 2024 to Ba3.
Moody's assigned those debentures an LGD5 rating suggesting
noteholders will experience a 73% loss in case of default.
Moody's explains that current long-term credit ratings are
opinions about expected credit loss, which incorporate both the
likelihood of default and the expected loss in the event of
default. The LGD rating methodology will disaggregate these two
key assessments in long-term ratings. The LGD rating methodology
will also enhance the consistency in Moody's notching practices
across industries and will improve the transparency and accuracy
of Moody's ratings as Moody's research has shown that credit
losses on bank loans have tended to be lower than those for
similarly rated bonds.
Probability-of-default ratings are assigned only to issuers, not
specific debt instruments, and use the standard Moody's alpha-
numeric scale. They express Moody's opinion of the likelihood
that any entity within a corporate family will default on any of
its debt obligations.
Loss-given-default assessments are assigned to individual rated
debt issues -- loans, bonds, and preferred stock. Moody's opinion
of expected loss are expressed as a percent of principal and
accrued interest at the resolution of the default, with
assessments ranging from LGD1 (loss anticipated to be 0% to 9%) to
LGD6 (loss anticipated to be 90% to 100%).
CommScope Inc. -- http://www.commscope.com/-- provides cable
and connectivity solutions for enterprise, cable, and telecom
industries. The Company is headquartered in Hickory, North
Carolina.
COMMUNITY SOLUTIONS: Voluntary Chapter 11 Case Summary
------------------------------------------------------
Debtor: Community Solutions, Inc.
109 Lexington Drive
Billings, MT 59102
Bankruptcy Case No.: 06-60815
Chapter 11 Petition Date: October 4, 2006
Court: District of Montana (Butte)
Judge: Ralph B. Kirscher
Debtor's Counsel: James A. Patten, Esq.
Suite 300, The Fratt Building 2817
2nd Avenue North
Billings, MT 59101
Tel: (406) 252-8500
Fax: (406) 294-9500
Estimated Assets: Unknown
Estimated Debts: Unknown
The Debtor did not file a list of its 20 largest unsecured
creditors.
COMPLETE PRODUCTION: Moody's Reviews B2 Rated Senior Facilities
---------------------------------------------------------------
Moody's Investors Service placed the ratings for Complete
Production Services, Inc. on review for possible upgrade. The
ratings impacted were Complete's B2 corporate family rating and
the B2 rated senior secured credit facilities. Moody's
anticipates this review will be completed shortly after the
release of the company's third quarter results and will likely
result in a one-notch upgrade of the current ratings.
The ratings review is prompted by Complete's progress in
integrating the three oilfield services companies that were
combined in Complete's formation in September 2005 and its
movement from niche player to a more significant market position
in its chosen North American basins. The company also
successfully raised $290 million in net proceeds from its April
2006 IPO, about a third of which was used to pay down revolver
borrowings while the remainder has been or will be used to fund
acquisitions. While absolute debt reduction has been limited, the
equity offering and acquisitions combined with robust market
conditions have resulted in meaningful leverage reduction (LTM
6/30/06 Debt/EBITDA and Debt/Capitalization reduced to 2.0x and
41.8%, respectively, as compared to 3.4x and 65.6% at 12/31/05).
The ratings review will focus on a more detailed assessment
-- of Complete's market position by product line and basin;
the company's growth strategy and acquisition criteria;
-- management's continuing commitment to using meaningful
common equity in funding acquisitions; and,
-- the company's policies for managing leverage and liquidity
through industry cycles.
Moody's will also review the extent of the company's exposure to
unconventional natural gas exploration and production activities
and potential impact of lower natural gas prices on Complete's
operations and cash flows.
Complete Production Services, Inc., headquartered in Houston,
Texas, is a provider of services and products for oil and gas
companies.
COMPLETE RETREATS: Withdraws Application to Hire XCMS LLC as Agent
------------------------------------------------------------------
Complete Retreats LLC and its debtor-affiliates withdrew its
application, filed with the U.S. Bankruptcy Court for the District
of Connecticut, to employ XRoads Case Management Services, LLC, as
their claims and noticing agent pursuant to Section 327 of the
Bankruptcy Code.
The withdrawal follows the Debtors' communication with Diana G.
Adams, the Acting United States Trustee for Region 2, regarding
her objection to their application.
U.S. Trustee's Objection
The Troubled Company Reporter on Sept. 7, 2006, relates that in
support of her objection to the retention of XRoads as the
Debtors' claims and noticing agent, the U.S. Trustee asserted that
Xroads' proposed services go beyond purely administrative
functions.
The U.S. Trustee noted that the Debtors sought XCM's assistance in
the preparation of their Schedules of Assets and Liabilities,
Statements of Financial Affairs, initial reporting package, and
their monthly operating reports. XCM's services are those
generally performed by a professional employed pursuant to Section
327 of the Bankruptcy Code, the U.S. Trustee said.
The Debtors, however, do not seek to employ XCM pursuant to
Section 327, the U.S. Trustee pointed out. In addition, the
Debtors did not propose to subject XCM's fees and expenses to
Court oversight and review in accordance with Section 330 of the
Bankruptcy Code, similar to the fees and expenses paid to a
professional employed under Section 327.
The U.S. Trustee maintained that to the extent Holly Felder Etlin,
the Debtors' chief restructuring officer, has the right to
contract for XCM, insider and other issues will arise that would
prohibit XCM's employment by the Debtors.
The U.S. Trustee also noted that the Debtors have not provided
information to show that the fees charged by XCM are commercially
reasonable and standard when compared to those of other parties
offering the same or similar services.
As reported in the Troubled Company Reporter on Aug. 23, 2006, the
U.S. Trustee sought replacement of Xroads as claims agent to
the Debtors, contending that the XCM Application does not:
-- provide information as to whether or not the Debtors tried
to obtain estimates of the costs from competing service
providers;
-- provide information as to whether or not the charges
proposed for XCM's services are commercially reasonable;
and
-- support whether or not XCM's employment is in the best
interests of the Debtors' estates and their creditors.
XCM is an affiliate of XRoads LLC, which may be an insider of
the Debtors, the U.S. Trustee noted.
As reported in the Troubled Company Reporter on Aug. 21, 2006,
the Debtors sought permission from the U.S. Bankruptcy Court for
the District of Connecticut to hire XCM as their claims and
noticing agent.
As their claims and noticing agent, the Debtors expected XCM to:
(a) assist the Debtors and their counsel in the preparation
of the Debtors' schedules of assets and liabilities and
statements of financial affairs;
(b) assist the Debtors and their counsel in the preparation
of the initial reporting package for the United States
Trustee;
(c) assist the Debtors and their counsel in preparation of
the Debtors' monthly operating reports;
(d) design, maintain, and administer the Debtors' claims
database;
(e) provide designated users with access to the claims
database to track claims activity, to view claims-related
documents in PDF format, and to create reports;
(f) send out acknowledgement cards to creditors confirming
receipt of their proofs of claim; and
(g) provide copy and notice service consistent with the
applicable local rules and as asked by the Debtors or the
Court, including acting as the official claims agent in
lieu of the Court in:
(1) serving notice to parties-in-interest;
(2) maintaining all proofs of claim and proofs of
interest filed and received in the bankruptcy cases;
(3) docketing the claims;
(4) maintaining and transmitting to the clerk of the
Court the official claims registers;
(5) maintaining current mailing lists of all entities
that have filed claims and notices of appearance it
receives;
(6) providing public access for examination of the claims
at CMS' premises during regular business hours and
without charge; and
(7) recording assignments of claims to third parties and
recording all transfers received by CMS pursuant to
Rule 3001(e) of the Federal Rules of Bankruptcy
Procedure.
The Debtors proposed to pay XCM these hourly rates for its
consulting services:
Professional Hourly Rate
------------ -----------
Director or Managing Director $225 to $325
Consultant or Sr. Consultant $125 to $225
Type of Service Hourly Rate
--------------- -----------
Accounting and Document Management $125 to $195
Programming and Technical Support $125 to $195
Clerical -- data entry $40 to $65
Headquartered in Westport, Connecticut, Complete Retreats LLC
operates five-star hospitality and real estate management
businesses. In addition to its mainline destination club
business, the Debtor also operates an air travel program for
destination club members, a villa business, luxury car rental
services, wine sales services, fine art sales program, and other
amenity programs for members. Complete Retreats and its debtor-
affiliates filed for chapter 11 protection on July 23, 2006
(Bankr. D. Conn. Case No. 06-50245). Nicholas H. Mancuso, Esq.
and Jeffrey K. Daman, Esq. at Dechert LLP represent the Debtors in
their restructuring efforts. Michael J. Reilly, Esq., at Bingham
McCutchen LP, in Hartford, Connecticut, serves as counsel to the
Official Committee of Unsecured Creditors. No estimated assets
have been listed in the Debtors' schedules, however, the Debtors
disclosed $308,000,000 in total debts. (Complete Retreats
Bankruptcy News, Issue No. 9; Bankruptcy Creditors' Service Inc.,
http://bankrupt.com/newsstand/or 215/945-7000).
COMPLETE RETREATS: Withdraws Application to Hire XRoads as Advisor
------------------------------------------------------------------
Complete Retreats LLC and its debtor-affiliates withdrew its
application, filed with the U.S. Bankruptcy Court for the District
of Connecticut, to employ XRoads Solutions Group LLC as their
financial and restructuring advisor.
The withdrawal follows the Debtors' communication with Diana G.
Adams, the Acting United States Trustee for Region 2, regarding
her objection to their application.
The Court previously approved the Debtors' application on an
interim basis, however, the U.S. Trustee objected to the
application contending that because XRoads Principal
Holly Felder Etlin will act as the Debtors' chief restructuring
officer, she is not disinterested, and thus cannot be retained
under Section 327 of the Bankruptcy Code.
The U.S. Trustee further contended that the firm is also not
disinterested because other XRoads employees will serve as
"supporting personnel" for Ms. Etlin.
Debtors' Application
In late June 2006, the Debtors hired XRoads Solutions to assist
them in the management of their business and in the exploration of
strategic alternatives.
In a retention letter dated July 20, 2006, the Debtors proposed
to continue XRoads' employment as their financial and
restructuring advisor.
Holly Felder Etlin, a principal at XRoads, agreed to serve as
the Debtors' Chief Restructuring Officer during the course of the
Chapter 11 cases.
The Debtors expected XRoads to continue to:
(a) provide the services of Ms. Etlin, as well as other
supporting personnel;
(b) develop, refine, implement, and monitor the Debtors'
turnaround efforts;
(c) evaluate the Debtors' strategic alternatives;
(d) assist in implementing any approved capital structure;
(e) review, assess and develop action plans of key contracts;
(f) review and validate the Debtors' cash flow forecasts and
related processes;
(g) evaluate the Debtors' business plan;
(h) assist in the development and implementation of a
recapitalization plan;
(i) provide financial information in support of, and
participation in, the Debtors' investment banking process;
(j) assist in communications with, negotiations with, and
presentations to vendors, creditors, and other key
constituents of the Debtors;
(k) assist in the development of employee-related plans;
(l) assume the leadership role for the design and
implementation of new effective management and financial
reporting methodologies for the Debtors' business; and
(m) analyze and lead the Debtors' cash management and related
activities.
In addition, Ms. Etlin informed the Court that XRoads Case
Management Services, LLC, an affiliate of XRoads, will provide
bankruptcy case support, administrative and noticing services to
the Debtors.
XRoads charged the Debtors a fixed minimum fee of $150,000
per month, provided that if their services total more than 480
hours, the Debtors will pay XRoads $375 per excess hour.
Headquartered in Westport, Connecticut, Complete Retreats LLC
operates five-star hospitality and real estate management
businesses. In addition to its mainline destination club
business, the Debtor also operates an air travel program for
destination club members, a villa business, luxury car rental
services, wine sales services, fine art sales program, and other
amenity programs for members. Complete Retreats and its debtor-
affiliates filed for chapter 11 protection on July 23, 2006
(Bankr. D. Conn. Case No. 06-50245). Nicholas H. Mancuso, Esq.
and Jeffrey K. Daman, Esq. at Dechert LLP represent the Debtors in
their restructuring efforts. Michael J. Reilly, Esq., at Bingham
McCutchen LP, in Hartford, Connecticut, serves as counsel to the
Official Committee of Unsecured Creditors. No estimated assets
have been listed in the Debtors' schedules, however, the Debtors
disclosed $308,000,000 in total debts. (Complete Retreats
Bankruptcy News, Issue No. 9; Bankruptcy Creditors' Service Inc.,
http://bankrupt.com/newsstand/or 215/945-7000).
COMPLETE RETREATS: Taps Etlin & XRoads Under U.S. Bankr. Sec. 363
-----------------------------------------------------------------
Complete Retreats LLC and its debtor-affiliates ask the U.S.
Bankruptcy Court for the District of Connecticut for permission
under Section 363 of the Bankruptcy Code to employ Holly Felder
Etlin as their chief restructuring officer, with a financial
advisory services support team from XRoads Solutions Group, LLC.
The Debtors believe that Ms. Etlin is a qualified restructuring
consultant with valuable experience in numerous corporate
turnarounds, financial reorganizations, and asset sales.
The Debtors previously filed an application under Section 327(a)
of the Bankruptcy Code to employ XRoads Solutions as their
financial and restructuring advisor. On July 25, 2006, the Court
approved the Debtors' request, on an interim basis.
After multiple communications among the Debtors' counsel, XRoads
and the U.S. Trustee, the Debtors have elected to voluntarily
withdraw the XRoads Retention Application.
Pursuant to the terms of a Retention Letter between XRoads and
the Debtors dated July 1, 2006, and amended on July 20, 2006, Ms.
Etlin, as the Debtors' CRO, is authorized and responsible for:
-- making decisions with respect to all aspects of the
management and operation of the Debtors' business and
assisting in identifying cost reduction, working capital
turn, and other operations improvement opportunities;
-- communicating and meeting with creditors and their
representatives in connection with the formulation,
negotiation, and execution of a plan of reorganization, and
discussing the business operations, financial performance,
and general condition of the Debtors; and
-- making decisions with respect to hiring new employees and
terminating the Debtors' existing employees.
Ms. Etlin, together with certain additional XRoads personnel,
will:
(a) evaluate the Debtors' strategic alternatives;
(b) assist in implementing any Court-approved capital
structure;
(c) review, assess the restructuring impact of, and develop
action plans for key contracts;
(d) review and validate the Debtors' cash flow forecasts and
related processes;
(e) evaluate the Debtors' business, reorganization and
restructuring plans;
(f) assist in the development and implementation of a
recapitalization plan;
(g) provide financial information in support of, and
participation in, the Debtors' investment banking process;
(h) assist in communications, negotiations with, and
presentations to vendors, creditors, and other key
constituents;
(i) assist in the development of employee-related plans,
including retention, severance, and replacement plans;
(j) assume the leadership role for the design and
implementation of new effective management and financial
reporting methodologies;
(k) analyze and lead the Debtors' cash management and related
activities; and
(1) assist in the preparation of the Debtors' Schedules of
Assets and Liabilities, Statements of Financial
Affairs, the initial reporting package for the United
States Trustee, and monthly operating reports.
The CRO and any other additional personnel would report to and
operate under the direction of the Debtors' board, which may
terminate the engagement upon 15 days' written notice.
The Debtors' current board of directors consists of James
Mitchell, Michael Shelton and Jason Bitsky. None of the
personnel employed by XRoads to represent the Debtors, including
the CRO, would serve as a director of the Debtors.
In addition, XRoads agrees that neither it nor any of its
affiliates would make any investment in the Debtors or the
reorganized Debtors for three years after the conclusion of its
engagement with the Debtors.
The Debtors will pay XRoads a fixed fee of $150,000 per month for
the CRO and Financial Advisory Services; provided, that if those
services total more than 480 hours in any month, the Debtors will
pay XRoads $375 per hour for the additional services.
The Debtors will pay all expenses reasonably incurred by XRoads
for services rendered on the Debtors' behalf. The CRO and other
additional XRoads personnel will be covered by the Debtors'
directors and officers insurance liability policy.
If any Restructuring is consummated during the term of XRoads'
engagement and 12 months after the termination of its services,
XRoads will receive a Restructuring Performance Fee equal to:
(i) 0.5% of the first $100,000,000 of the Debtors' debt
securities and other indebtedness, obligations, or
liabilities restructured; and
(ii) 0.25% of all amounts in excess of $100,000,000 of the
Debtors' cumulative debt securities and other
indebtedness, obligations, or liabilities restructured.
If a Sale Transaction is consummated during the term of XRoads'
engagement or within 12 months after the termination of its
services, XRoads will receive a Sale Performance Fee equal to:
(i) 0.5% of the first $100,000,000 of Aggregate Gross
Considerations paid; and
(ii) 0.25% of the Aggregate Gross Consideration paid in excess
of $100,000,000.
The Restructuring Performance Fee and the Sales Performance Fee,
if earned, would be subject to the Court's approval.
Prior to the Petition Date, XRoads received a $150,000 retainer.
The Retainer will be applied to XRoads' final bill for fees and
expenses, Jeffrey K. Daman, Esq., at Dechert LLP, in Hartford,
Connecticut, informs the Court. The unused portion of the
Retainer, if any, will be returned to the Debtors.
The Debtors have been advised by XRoads that it will endeavor to
coordinate with the other retentions in the Debtors' bankruptcy
cases to eliminate unnecessary duplication or overlap of work.
"The assistance of Ms. Etlin and her team will provide a fresh
perspective on the Debtors' business, as well as valuable
expertise on various business management and operational issues,"
Mr. Daman avers. "With the aid of XRoads, the Debtors will be
better able to assess possible areas of cost reduction and other
operational improvement opportunities, as well as successfully
navigate through the critical early stage of these cases and
beyond."
Because the CRO is not to be retained under Section 327, XRoads
should not be subject to the compensation requirements of
Sections 328, 330 and 331 of the Bankruptcy Code, Mr. Daman
contends.
Thus, the Debtors ask the Court to:
-- treat XRoads' fees and expenses as an administrative
expense of the Debtors' estates; and
-- exempt XRoads from filing fee applications or seeking Court
approval for the payment of its services and reimbursement
of its expenses.
Ms. Etlin, as principal of XRoads Solutions Group, LLC, assures
the Court that XRoads is a "disinterested" person as that term is
defined in Section 101(14) of the Bankruptcy Code. XRoads does
not hold or represent an interest adverse to the Debtors or their
estates.
Headquartered in Westport, Connecticut, Complete Retreats LLC
operates five-star hospitality and real estate management
businesses. In addition to its mainline destination club
business, the Debtor also operates an air travel program for
destination club members, a villa business, luxury car rental
services, wine sales services, fine art sales program, and other
amenity programs for members. Complete Retreats and its debtor-
affiliates filed for chapter 11 protection on July 23, 2006
(Bankr. D. Conn. Case No. 06-50245). Nicholas H. Mancuso, Esq.
and Jeffrey K. Daman, Esq. at Dechert LLP represent the Debtors in
their restructuring efforts. Michael J. Reilly, Esq., at Bingham
McCutchen LP, in Hartford, Connecticut, serves as counsel to the
Official Committee of Unsecured Creditors. No estimated assets
have been listed in the Debtors' schedules, however, the Debtors
disclosed $308,000,000 in total debts. (Complete Retreats
Bankruptcy News, Issue No. 9; Bankruptcy Creditors' Service Inc.,
http://bankrupt.com/newsstand/or 215/945-7000).
COPELANDS' ENTERPRISES: Hires Pachulski Stang as Bankr. Counsel
---------------------------------------------------------------
Copelands' Enterprises, Inc., obtained authority from the U.S.
Bankruptcy Court for the District of Delaware to employ Pachulski,
Stang, Ziehl, Young, Jones & Weintraub LLP as its bankruptcy
counsel, nunc pro tunc to Aug. 14, 2006.
As reported in the Troubled Company Reporter on Sept. 4, 2006,
Pachulski Stang is expected to:
a. provide legal advice with respect to the Debtor's powers
and duties as a debtor-in-possession in the continued
operation of its business and management of its property;
b. prepare, on behalf of the Debtor, necessary applications,
motions, answers, orders, reports, and other legal papers;
c. appear in Court on behalf of the Debtor and in order to
protect the interests of the Debtor before the Court;
d. prepare and pursue confirmation of a plan and approval of a
disclosure statement; and
e. perform all other legal services for the Debtor that may be
necessary and proper in the Debtor's case.
Laura Davis Jones, Esq., the Delaware managing partner at
Pachulski Stang, disclosed the current hourly rates of
professionals expected to represent the Debtor:
Professional Designation Hourly Rate
------------ ----------- -----------
Laura Davis Jones, Esq. Managing Partner $675
Marc A. Beilinson, Esq. Partner $625
Ira D. Kharasch, Esq. Partner $625
Harry D. Hochman, Esq. Associate $450
James E. O'Neill, Esq. Associate $445
Jonathan J. Kim, Esq. Associate $395
Sandra G.M. Selzer, Esq. Associate $295
Marlene S. Chappe Paralegal $150
Ms. Jones assures the Court that the Firm does not hold nor
represent any interest adverse to the Debtor and is disinterested
as that term is defined in Section 101(14) of the U.S. Bankruptcy
Code.
Based in San Luis Obispo, California, Copelands' Enterprises,
Inc., dba Copelands' Sports -- http://www.copelandsports.com/--
operates specialty sporting goods stores. The Company filed for
chapter 11 protection on Aug. 14, 2006 (Bankr. D. Del. Case No.
06-10853). Laura Davis Jones, Esq., Marc A. Berlinson, Esq., and
Ira A. Kharasch, Esq., at Pachulski, Stang, Ziehl, Young, Jones, &
Weintraub LLP, in Los Angeles, California, represent the Debtor.
Clear Thinking Group serves as the Debtor's financial advisor.
When the Debtor filed for protection from its creditors, it
estimated assets and debts between $50 million and $100 million.
COPELANDS' ENTERPRISES: Committee Hires Kronish Lieb as Counsel
---------------------------------------------------------------
The Official Committee of Unsecured Creditors of Copelands'
Enterprises, Inc., obtained authority from the U.S. Bankruptcy
Court for the District of Delaware to retain Kronish Lieb Weiner &
Hellman LLP as its bankruptcy counsel, nunc pro tunc to Aug. 24,
2006.
Kronish Lieb will:
a. attend meeting of the Committee;
b. review financial information furnished by the Debtor to the
Committee;
c. review and investigate the liens of purported secured party
or parties;
d. confer with the Debtor's management and counsel;
e. coordinate efforts to sell assets of the Debtor in a manner
that maximizes the value for unsecured creditors;
f. review the Debtor's schedules, statement of affairs and
business plan;
g. advise the Committee as to the ramifications regarding all
of the Debtor's activities and motions before the Court;
h. investigate potential causes of action that may inure to
the benefit of the Committee's constituency;
i. file appropriate pleading on behalf of the Committee;
j. review and analyze accountant's work product and reports to
the Committee;
k. provide the Committee with legal advice in relation to the
Debtor's chapter 11 case;
l. prepare various applications and memoranda of law submitted
to the Court for consideration and handle all other matters
relating to the representation of the Committee that may
arise;
m. assist the Committee in negotiations with the Debtors and
other parties in interest on any plan of reorganization or
liquidation that may be proposed;
n. provide information to creditors in accordance with Section
1102(b)(3) of the Bankruptcy Code, subject to
confidentiality agreements and orders of the Court; and
o. perform other legal services for the Committee as may be
necessary or proper in the Debtor's bankruptcy proceeding.
The Debtor tells the Court that the firm's professionals bill:
Professional Designation Hourly Rate
------------ ----------- -----------
Lawrence C. Gottlieb, Esq. Partner $725
Jay R. Indyke, Esq. Partner $650
Cathy Hersheopf, Esq. Partner $585
Nicholas Smithberg, Esq. Associate $470
Gregory Plotko, Esq. Associate $410
Brent Weisenberg, Esq. Associate $350
Melissa Harrison, Esq. Associate $290
Seth Van Aalten, Esq. Associate $290
Mr. Indyke assures the Court that his firm does not represent any
interest adverse to the Committee, the Debtor or its estate.
Mr. Indyke can be reached at:
Jay R. Indyke, Esq.
Kronish Lieb Weiner & Hellman LLP
The Grace Building
1114 Avenue of the Americas
46th Floor
New York, NY 10036-7798
Tel: (212) 479-6000
Fax: (212) 479-6275
http://www.kronishlieb.com/
Based in San Luis Obispo, California, Copelands' Enterprises,
Inc., dba Copelands' Sports -- http://www.copelandsports.com/--
operates specialty sporting goods stores. The Company filed for
chapter 11 protection on Aug. 14, 2006 (Bankr. D. Del. Case No.
06-10853). Laura Davis Jones, Esq., Marc A. Berlinson, Esq., and
Ira A. Kharasch, Esq., at Pachulski, Stang, Ziehl, Young, Jones, &
Weintraub LLP, in Los Angeles, California, represent the Debtor.
Clear Thinking Group serves as the Debtor's financial advisor.
When the Debtor filed for protection from its creditors, it
estimated assets and debts between $50 million and $100 million.
COPELANDS' ENTERPRISES: Files Schedules of Assets and Liabilities
-----------------------------------------------------------------
Copelands' Enterprises, Inc., delivered its Schedules of Assets
and Liabilities to the U.S. Bankruptcy Court for the District of
Delaware, disclosing:
Name of Schedule Assets Liabilities
---------------- ------ -----------
A. Real Property
B. Personal Property $52,626,216
C. Property Claimed
as Exempt
D. Creditors Holding $28,747,471
Secured Claims
E. Creditors Holding $2,600,821
Unsecured Priority Claims
F. Creditors Holding $22,518,893
Unsecured Nonpriority
Claims
----------- -----------
Total $52,626,216 $53,867,185
Based in San Luis Obispo, California, Copelands' Enterprises,
Inc., dba Copelands' Sports -- http://www.copelandsports.com/--
operates specialty sporting goods stores. The Company filed for
chapter 11 protection on Aug. 14, 2006 (Bankr. D. Del. Case No.
06-10853). Laura Davis Jones, Esq., Marc A. Berlinson, Esq., and
Ira A. Kharasch, Esq., at Pachulski, Stang, Ziehl, Young, Jones, &
Weintraub LLP, in Los Angeles, California, represent the Debtor.
Clear Thinking Group serves as the Debtor's financial advisor.
Kronish Lieb Weiner & Hellman LLP represents the Official
Committee of Unsecured Creditors. When the Debtor filed for
protection from its creditors, it estimated assets and debts
between $50 million and $100 million.
CPH ENTERPRISES: Voluntary Chapter 11 Case Summary
--------------------------------------------------
Debtor: CPH Enterprises, LLC
3892 South Marigold Way
Gilbert, AZ 85297
Bankruptcy Case No.: 06-03219
Chapter 11 Petition Date: October 4, 2006
Court: District of Arizona (Phoenix)
Judge: Sarah Sharer Curley
Debtor's Counsel: Allan D. Newdelman, Esq.
Allan D. Newdelman, P.C.
80 East Columbus Avenue
Phoenix, AZ 85012
Tel: (602) 264-4550
Fax: (602) 277-0144
Estimated Assets: Less than $10,000
Estimated Debts: $1 Million to $10 Million
The Debtor did not file a list of its 20 largest unsecured
creditors.
DALLAS AEROSPACE: Chapter 7 Trustee Wants Case Dismissed
--------------------------------------------------------
Scott M. Seidel, the Chapter 7 trustee for Dallas Aerospace,
Inc.'s estate, asks the U.S. Bankruptcy Court for the Northern
District of Texas, to dismiss the Debtor's chapter 7 liquidation
proceeding.
The Trustee tells the Court that the Debtor has an appeal pending
concerning the underlying judgment of CIS Corporation. CIS has
previously prevailed in two proceedings and has a recorded
judgment at this time of $695,432.23.
The only creditor besides Dallas County, CIS contends that the
Estate has certain causes of action which should be brought
against The Fairchild Corporation and its subsidiaries or
affiliates. According to the Chapter 7 Trustee, the potential
causes of action may be subject to defenses and will no doubt be
expensive, costly and time-consuming to prosecute and will
benefit, in all practicality, only CIS.
The Trustee contends that clearly, this case is a two-party
dispute as the Court is aware. He says these two parties, rather
than proceeding in this forum, should bring their causes of action
against each other in the appropriate state court and appellate
forums.
Headquartered in Carrollton, Texas, Dallas Aerospace, Inc., is an
aftermarket supplier of engines, engine parts, and engine
management and leasing services, with facilities in Dallas, Texas,
and Miami, Florida. The Company filed for chapter 11 protection
on Oct. 1, 2004 (Bankr N.D. Tex. Case No. 04-80663). McGuire,
Craddock & Strother represented the Debtor. When the Debtor filed
for protection from its creditors, it listed estimated assets of
$1 million to $10 million and estimated debts of $10 million to
$50 million. On Jan. 24, 2005, the Court converted the Debtor's
chapter 11 case to a chapter 7 liquidation proceeding. James F.
Adams, Esq., at Passman & Jones, P.C., represents Scott M. Seidel,
the court-appointed chapter 7 trustee.
DALLAS AEROSPACE: Chapter 7 Trustee Wants Special Counsel Employed
------------------------------------------------------------------
Scott M. Seidel, the Chapter 7 trustee for Dallas Aerospace,
Inc.'s estate, asks the U.S. Bankruptcy Court for the Northern
District of Texas for permission to employ a special counsel or,
in the alternative, abandon any and all causes of action, claims
or lawsuits.
Mr. Seidel reminds the Court that besides Dallas County, CIS
Corporation has asserted that the estate has certain causes of
action that should be brought against Fairchild Corporation. The
Chapter 7 Trustee adds that the potential cause of action, which
will only benefit CIS, will be expensive and time-consuming to
prosecute.
The Trustee says that he has repeatedly offered to allow CIS to
employ its own counsel to handle the litigation on a contingency
basis or any arrangement with CIS to fund the litigation. CIS has
however refused to do either. The Trustee discloses that CIS has
stated that Patrick Salisbury, Esq., may be interested in pursuing
the litigation on behalf of the estate but has a relationship with
CIS.
The Trustee tells the Court that for all practical purposes, the
case is a two-party dispute. The Trustee reminds the Court that
Fairchild Group has offered to fund the appeal of the underlying
judgment which represents CIS' claim at no charge to the estate
and that the stay had been lifted to allow that appeal to proceed,
to the extent it ever applied, over the objection of CIS.
The Trustee wants to employ special counsel provided by CIS to be
paid 40% of any and all recovery. In the alternative, the Trustee
seeks the Court's permission to abandon alleged causes because of
the prohibitive costs of litigating and the fact that putative
beneficiary refuses to fund or handle the litigation of the
estate.
Headquartered in Carrollton, Texas, Dallas Aerospace, Inc., is an
aftermarket supplier of engines, engine parts, and engine
management and leasing services, with facilities in Dallas, Texas,
and Miami, Florida. The Company filed for chapter 11 protection
on Oct. 1, 2004 (Bankr N.D. Tex. Case No. 04-80663). McGuire,
Craddock & Strother represented the Debtor. When the Debtor filed
for protection from its creditors, it listed estimated assets of
$1 million to $10 million and estimated debts of $10 million to
$50 million. On Jan. 24, 2005, the Court converted the Debtor's
chapter 11 case to a chapter 7 liquidation proceeding. James F.
Adams, Esq., at Passman & Jones, P.C., represents Scott M. Seidel,
the court-appointed chapter 7 trustee.
DANA CORP: Retiree Committee Selects Stahl Cowen as Counsel
-----------------------------------------------------------
The Official Committee of Non-Union Retirees in Dana Corporation
and its debtor-affiliates' chapter 11 cases asks the U.S.
Bankruptcy Court for the Southern District of New York for
authority to retain Stahl Cowen Crowley, LLC, as its counsel, nunc
pro tunc to Sept. 5, 2006.
As the Retiree Committee's legal counsel, Stahl Cowen will:
(a) counsel the Retiree Committee with respect to the
administration of the Debtors' bankruptcy estates, advise
the Retiree Committee members with respect to their
fiduciary duties, and communicate with the retiree
constituency and the like;
(b) investigate the acts, conduct, assets, liabilities and
financial condition of the Debtors and their non-debtor
affiliates, the operation of the Debtors' businesses, and
any other matters relevant to the case or to the
formulation of a plan of reorganization or liquidation;
(c) analyze any proposals made by the Debtors with respect to
their assertions as to the necessity and extent of
reduction of retiree benefits and developing counter-
offers to those proposals;
(d) negotiate and litigate with respect to the Retiree
Committee's rights and interests regarding any
modifications by the Debtors of any prepetition retiree
benefits provided to their non-union retirees who are
constituents of the Retiree Committee;
(e) prepare all necessary motions, answers, orders, reports
and other legal papers in connection with the Retiree
Committee's interests in the Debtors' estates;
(f) participate in the formulation of a disclosure statement
and a plan and advise the Retiree Committee as to the
effects and consequences that may result from any plan
formulated;
(g) work with other professionals, likely to include financial
advisors and an actuarial firm, to examine the Debtors'
financial condition, the projections and analysis of the
Debtors' financial advisors, their business plans and any
revisions of it, health coverage information, actuarial
analysis of the retiree group and the usage and cost of
health care coverage;
(h) assist the Retiree Committee in evaluating and
implementing alternative health care plans and their
mechanisms for establishing, funding and maintaining;
(i) submit all necessary retention and compensation filings
for professionals retained by the Retiree Committee;
(j) represent the Retiree Committee's interests in any sale by
the Debtors of any or all of their assets; and
(k) represent the Retiree Committee's interests in all matters
otherwise necessary to protect its interests.
Stahl Cowen will be paid based on its customary hourly rates:
Professional Hourly Rates
------------ ------------
Partners $260 to $450
Associates $185 to $280
Legal Assistants/Paralegals $100 to $175
These professionals will have primary responsibility of providing
services to the Retiree Committee:
Professional Hourly Rate
------------ -----------
Jon D. Cohen $415
Trent P. Cornell $395
Scott N. Schreiber $435
Stahl Cowen will also be reimbursed for all necessary expenses it
will incur in providing services to the Retiree Committee.
Jon David Cohen, Esq., an equity member of Stahl Cowen Crowley,
LLC, informs the Court that his firm is not owed any money by the
Debtors prepetition and does not represent any interest adverse
to the Retiree Committee, its members and its constituents. Mr.
Cohen assures Judge Lifland that Stahl Cowen is a "disinterested
person" within the meaning of Section 101(14) of the Bankruptcy
Code.
About SCC
Chicago, IL-based law firm Stahl Cowen Crowley LLC --
http://www.stahlcowen.com/-- provides legal counsel to
organizations ranging from the entrepreneurial to large, publicly
traded corporations and municipalities. The firm's practice areas
include Bankruptcy & Restructuring, Corporate, Mergers &
Acquisitions, Litigation, Local Government, Real Estate and Trusts
& Estates.
About Dana Corporation
Toledo, OH-based Dana Corp. -- http://www.dana.com/-- designs and
manufactures products for every major vehicle producer in the
world, and supplies drivetrain, chassis, structural, and engine
technologies to those companies. Dana employs 46,000 people in 28
countries. Dana is focused on being an essential partner to
automotive, commercial, and off-highway vehicle customers, which
collectively produce more than 60 million vehicles annually. The
company and its affiliates filed for chapter 11 protection on
Mar. 3, 2006 (Bankr. S.D.N.Y. Case No. 06-10354). Corinne Ball,
Esq., and Richard H. Engman, Esq., at Jones Day, in Manhattan and
Heather Lennox, Esq., Jeffrey B. Ellman, Esq., Carl E. Black,
Esq., and Ryan T. Routh, Esq., at Jones Day in Cleveland, Ohio,
represent the Debtors. Henry S. Miller at Miller Buckfire & Co.,
LLC, serves as the Debtors' financial advisor and investment
banker. Ted Stenger from AlixPartners serves as Dana's Chief
Restructuring Officer. Thomas Moers Mayer, Esq., at Kramer Levin
Naftalis & Frankel LLP, represents the Official Committee of
Unsecured Creditors. Fried, Frank, Harris, Shriver & Jacobson,
LLP serves as counsel to the Official Committee of Equity Security
Holders. When the Debtors filed for protection from their
creditors, they listed $7.9 billion in assets and $6.8 billion in
liabilities as of Sept. 30, 2005. (Dana Corporation Bankruptcy
News, Issue No. 22; Bankruptcy Creditors' Service Inc.,
http://bankrupt.com/newsstand/or 215/945-7000).
DANA CORP: Retiree Committee Selects DSI as Financial Advisors
--------------------------------------------------------------
The Official Committee of Non-Union Retirees in Dana Corporation
and its debtor-affiliates' chapter 11 cases asks the U.S.
Bankruptcy Court for the Southern District of New York for
authority to retain Development Specialists, Inc., as its
financial advisors, nunc pro tunc to Sept. 12, 2006,
Trent P. Cornell, Esq., at Stahl Cowen Crowley, LLC, in Chicago,
Illinois, contends that it is critical for the Retiree Committee
to retain services of a financial advisor to adequately respond
to the requests for modification of retiree benefits that will be
sought by the Debtors.
Moreover, the Retiree Committee believes that a financial advisor
will be critical in its ability to deal effectively with other
parties-in-interest in the Debtors' Chapter 11 proceedings,
notably the Official Committee of Unsecured Creditors that may
oppose the Retiree Committee's efforts to protect the retirees'
benefits.
Mr. Cornell notes that parties-in-interest, including the
Debtors, are represented by at least one financial advisory firm.
As financial advisor to the Retiree Committee, DSI will:
(a) counsel the Retiree Committee with respect to the
administration of the Debtors' bankruptcy estate, advise
the Retiree Committee members with respect to their
fiduciary duties, and communicate with the retiree
constituency and the like;
(b) investigate the acts, conduct, assets, liabilities and
financial condition of the Debtors and their non-debtor
affiliates, the operation of the Debtors' businesses, and
any other matters relevant to the case or to the
formulation of a plan of reorganization or liquidation;
(c) analyze any proposals made by the Debtors with respect to
their assertions as to the necessity and extent of
reduction of retiree benefits and developing counter-
offers to those proposals;
(d) negotiate and litigate with respect to the rights and
interests of the Retiree Committee regarding any
modifications by the Debtors of any prepetition retiree
benefits provided to their non-union retirees who are
constituents of the Retiree Committee;
(e) prepare all necessary motions, answers, orders, reports
and other legal papers in connection with the Retiree
Committee's interests in the Debtors' estates;
(f) participate in the formulation of a disclosure statement
and a plan and advise the Retiree Committee as to the
effects and consequences that may result from any plan
formulated;
(g) work with other professionals, likely to include financial
advisors and an actuarial firm, to examine the Debtors'
financial condition, the projections and analysis of the
Debtors' financial advisors, their business plans and any
revisions of it, health coverage information, actuarial
analysis of the retiree group and the usage and cost of
health care coverage;
(h) assist the Retiree Committee in evaluating and
implementing alternative health care plans and their
mechanisms for establishing, funding and maintaining;
(i) submit all necessary retention and compensation filings
for professionals retained by the Retiree Committee;
(j) represent the Retiree Committee's interests in any sale by
the Debtors of any or all of their assets; and
(k) represent the Retiree Committee's interests in all matters
otherwise necessary to protect its interests.
DSI will be paid based on its customary hourly rates:
Professional Hourly Rates
------------ ------------
Senior Consultants $390 to $525
Consultants $295 to $370
Junior Consultants $95 to $290
These professionals will have primary responsibility of providing
services to the Retirees Committee:
Professional Hourly Rate
------------ -----------
R. Brian Calvert $425
Bradley D. Sharp $450
DSI will also be reimbursed for all necessary expenses it
will incur in providing services to the Retiree Committee.
R. Brian Calvert, Esq., vice president and senior consultant of
Development Specialists, Inc., assures the Court that his firm
does not hold any interest adverse to the Debtors and the Retiree
Committee, and is a "disinterested person" within the meaning of
Section 101(14) of the Bankruptcy Code.
About Dana Corporation
Toledo, OH-based Dana Corp. -- http://www.dana.com/-- designs and
manufactures products for every major vehicle producer in the
world, and supplies drivetrain, chassis, structural, and engine
technologies to those companies. Dana employs 46,000 people in 28
countries. Dana is focused on being an essential partner to
automotive, commercial, and off-highway vehicle customers, which
collectively produce more than 60 million vehicles annually. The
company and its affiliates filed for chapter 11 protection on
Mar. 3, 2006 (Bankr. S.D.N.Y. Case No. 06-10354). Corinne Ball,
Esq., and Richard H. Engman, Esq., at Jones Day, in Manhattan and
Heather Lennox, Esq., Jeffrey B. Ellman, Esq., Carl E. Black,
Esq., and Ryan T. Routh, Esq., at Jones Day in Cleveland, Ohio,
represent the Debtors. Henry S. Miller at Miller Buckfire & Co.,
LLC, serves as the Debtors' financial advisor and investment
banker. Ted Stenger from AlixPartners serves as Dana's Chief
Restructuring Officer. Thomas Moers Mayer, Esq., at Kramer Levin
Naftalis & Frankel LLP, represents the Official Committee of
Unsecured Creditors. Fried, Frank, Harris, Shriver & Jacobson,
LLP serves as counsel to the Official Committee of Equity Security
Holders. When the Debtors filed for protection from their
creditors, they listed $7.9 billion in assets and $6.8 billion in
liabilities as of Sept. 30, 2005. (Dana Corporation Bankruptcy
News, Issue No. 22; Bankruptcy Creditors' Service Inc.,
http://bankrupt.com/newsstand/or 215/945-7000).
DANA CORP: Creditors and Equity Panels Gets Court OK to Hire ARPC
-----------------------------------------------------------------
The Honorable Burton R. Lifland of the U.S. Bankruptcy Court for
the Southern District of New York authorized the Official
Committee of Unsecured Creditors and the Official Committee of
Equity Security Holders in Dana Corporation and its debtor-
affiliates' chapter 11 cases to retain ARPC, as their asbestos
claims consultant, on a joint basis, effective as of July 28,
2006.
The Court ruled that both Committees will have equal access to
ARPC, its consultants, employees, and its entire work product.
In its request, which the Equity Committee subsequently joined,
the Creditors Committee told the Court that since 2001, the
Debtors have employed Peterson Asbestos Consulting Enterprise to
administer claims, bill insurance carriers and assist them in
claims negotiation and resolution related to their asbestos
liabilities. There are approximately 77,000 "active" asbestos
cases against the Debtors. The Debtors estimate their asbestos
liabilities for the next 15 years to be within the range of
$70,000,000 to $120,000,000, and that they will have only "de
minimis" liability thereafter.
Since its appointment, the Creditors Committee has reviewed
countless documents regarding the Debtors' asbestos liabilities
and has had at least three in-person meetings devoted solely to
asbestos and related issues, Thomas Moers Mayer, Esq., at Kramer
Levin Naftalis & Frankel, LLP, in New York, said.
Also, there is a substantial likelihood that a plan of
reorganization in the Debtors' Chapter 11 cases may permit
asbestos creditors to "pass-through" the case, Mr. Thomas added.
However, Mr. Thomas noted, before the Committee can make a
determination as to how the asbestos liabilities should be
treated, it must, among other things:
-- test the assumptions and calculations utilized by the
Debtors in connection with the estimate of their present
and future asbestos liabilities;
-- examine the applicable insurance covering the liabilities
and claims; and
-- examine the costs and benefits of "resolving" the asbestos
liabilities as part of the Chapter 11 cases as compared to
"passing-through" the liabilities to the reorganized
company.
To accomplish the task, the Committee has determined that it
requires the assistance of an industry expert as asbestos claims
evaluation consultants.
As the Committee's asbestos claim consultant, ARPC will:
(a) determine whether a plan that "passes through" the
Debtors' asbestos liabilities is feasible and appropriate;
(b) compare a "pass-through" plan to the costs, benefits and
feasibility of resolving the present and future asbestos
claims as part of the Chapter 11 case; and
(c) understand and use the estimates provided by the Debtors
and test the assumptions and calculations on which the
estimates are based.
ARPC will be paid according to its customary hourly rates:
Professional Hourly Rates
------------ ------------
Partners and Principals $350 to $550
Managing Directors $275 to $350
Directors $225 to $275
Consultants $185 to $225
ARPC will also be reimbursed for its necessary expenses incurred
while providing services to the Committee.
B. Thomas Florence, president of ARPC, in Washington, D.C.,
assured the Court that his firm does not represent any interest
adverse to the Debtors and their estates. Mr. Florence maintains
that ARPC is a "disinterested person" as defined in Section
101(14) of the Bankruptcy Code.
About Dana Corporation
Toledo, OH-based Dana Corp. -- http://www.dana.com/-- designs and
manufactures products for every major vehicle producer in the
world, and supplies drivetrain, chassis, structural, and engine
technologies to those companies. Dana employs 46,000 people in 28
countries. Dana is focused on being an essential partner to
automotive, commercial, and off-highway vehicle customers, which
collectively produce more than 60 million vehicles annually. The
company and its affiliates filed for chapter 11 protection on
Mar. 3, 2006 (Bankr. S.D.N.Y. Case No. 06-10354). Corinne Ball,
Esq., and Richard H. Engman, Esq., at Jones Day, in Manhattan and
Heather Lennox, Esq., Jeffrey B. Ellman, Esq., Carl E. Black,
Esq., and Ryan T. Routh, Esq., at Jones Day in Cleveland, Ohio,
represent the Debtors. Henry S. Miller at Miller Buckfire & Co.,
LLC, serves as the Debtors' financial advisor and investment
banker. Ted Stenger from AlixPartners serves as Dana's Chief
Restructuring Officer. Thomas Moers Mayer, Esq., at Kramer Levin
Naftalis & Frankel LLP, represents the Official Committee of
Unsecured Creditors. Fried, Frank, Harris, Shriver & Jacobson,
LLP serves as counsel to the Official Committee of Equity Security
Holders. When the Debtors filed for protection from their
creditors, they listed $7.9 billion in assets and $6.8 billion in
liabilities as of Sept. 30, 2005. (Dana Corporation Bankruptcy
News, Issue No. 22; Bankruptcy Creditors' Service Inc.,
http://bankrupt.com/newsstand/or 215/945-7000).
DESIGNING TEXAS: Case Summary & 20 Largest Unsecured Creditors
--------------------------------------------------------------
Debtor: Designing Texas, LP
2655 Villa Creek Drive, #299
Dallas, TX 75234
Bankruptcy Case No.: 06-34156
Chapter 11 Petition Date: October 2, 2006
Court: Northern District of Texas (Amarillo)
Judge: Barbara J. Houser
Debtor's Counsel: Frank J. Wright, Esq.
Hance Scarborough WrightGinsberg & Brusilow, LLP
14755 Preston Rd., Suite 600
Dallas, TX 75254
Tel: (972) 788-1600
Fax: (972) 239-0138
Estimated Assets: $10,000 to $100,000
Estimated Debts: $1 Million to $10 Million
Debtor's 20 Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
------ --------------- ------------
KTVT-11 Trade debt $190,400
5233 Bridge Street
Fort Worth, TX 76103
Emmis Texas Monthly Trade debt $64,000
P.O. Box 1569
Austin, TX 78767
WFAA-TV Trade debt $37,500
Attn: Erica McDaniel
606 Young St
Dallas, TX
KVUE Trade debt $31,250
Attn: John McThompson
3201 Steck Ave.
Austin, TX 78757
Nicole Brende $28,228
2700 Albany St
Houston, TX 77006
InterNetwork Experts, Inc. Trade debt $15,000
Dept. 523
P.O. Box 4346
Houston, TX 77210
KEYE-TV Trade debt $13,500
10700 Metric Blvd
Austin, TX 78758
Steven C. Hastings Trade debt $9,145
1020 Alamo Dr
Southlake, TX 76092
Margaret Morris Trade debt $5,287
6922 Robin Rd
Dallas, TX 75209
Segnet Technologies Trade debt $5,137
1431 Greenway Dr., #230
Irving, TX 75038
PixelCuts, LLC Trade debt $3,288
773 Rockefeller Lane
Allen, TX 75002
Blue Cross Blue Shield Trade debt $3,241
P.O. Box 1186
Chicago, IL 60690
Golden, Dellinges & Redd, LP Accounting Services $3,025
5949 Sherry Lane, #650
Dallas, TX 75225
Tele-Print Trade debt $2,923
3361 Boyington Dr., #160
Carrollton, TX 75006
Kimberly Schlegel Trade debt $2,500
4301 Beverly Dr
Dallas, TX 75205
Southwest Captioning Trade debt $2,120
Service
7818 Kilbride Lane
Dallas, TX 75248
Staples Trade debt $2,100
Dept. 51-7819424374
PO Box 9020
Des Moines, IA 50368
Comtel Pro Media LLC Trade debt $1,669
d/b/a Direct Tape.com
P.O. Box 678427
Dallas, TX 75267
Cedar Creek Technologies Trade debt $1,521
P.O. Box 780
Mc Kinney, TX 75070
Carrington Coleman Legal fees $1,397
901 Main St., #5000
Dallas, TX 75202
ECHOSTAR COMMS: Can Continue Selling DVRs, Appellate Court Says
---------------------------------------------------------------
The Honorable William C. Bryson of the U.S. Court of Appeals for
the Federal Circuit allows EchoStar Communications Corp. and its
subsidiaries to continue selling digital video recorders while
appealing rival TiVo Inc.'s victory in a patent case.
Tivo alleged that EchoStar willfully infringe U.S. Patent No.
6,233,389, entitled "Multimedia Time Warping System," by making
and selling digital video recording devices, digital video
recording device software, and personal television services in the
United States. On April 13, 2006, the jury in the U.S. District
Court for the Eastern District of Texas suit rendered a verdict in
favor of the Company in the amount of approximately $74 million.
On Aug. 17, 2006, the District Court granted TiVo's motion for
permanent injunction to prevent EchoStar from making, using, and
selling DVRs in the U.S. The District Court also ordered EchoStar
to pay TiVo approximately $74 million in damages as awarded by the
jury, prejudgment interest at the prime rate through July 31,
2006, of approximately $5.6 million, and supplemental damages for
infringement through July 31, 2006, in the amount of approximately
$10.3 million. The District Court denied TiVo's request for
enhanced damages and attorney's fees and costs. The District
Court also denied EchoStar's request to stay the injunction
pending appeal.
The Court of Appeals temporarily stayed the District Court's
injunction on Aug. 18, 2006. The Court of Appeals said that the
temporary stay was not based on a consideration of the merits of
EchoStar's request.
EchoStar Communications Corporation serves more than 12.46 million
satellite TV customers through its DISH NetworkTM, and provides
advanced digital television services. DISH Network's services
include hundreds of video and audio channels, Interactive TV,
HDTV, sports and international programming, together with
professional installation and 24-hour customer service.
* * *
As reported in the Troubled Company Reporter on Oct. 2, 2006,
Moody's Investors Service affirmed all ratings including the Ba3
corporate family and SGL-1 liquidity rating for EchoStar
Communications Corporation and its subsidiary EchoStar DBS
Corporation following the company's announcement of a proposed
$500 million of EDBS notes.
At the same time, Standard & Poor's Ratings Services assigned a
'BB-' rating to Echostar DBS Corp.'s aggregate $500 million senior
notes with maturities of 2013 and 2016.
ENRON CORP: Judge Gonzalez Approves El Paso Settlement
------------------------------------------------------
The Hon. Arthur Gonzalez for the U.S. Bankruptcy Court for the
Southern District of New York approved Enron Corp.'s Settlement
Agreement, which provides that:
(1) Claim No. 12891 will be partially reduced and allowed as a
general unsecured Plan Class 5 claim against ENA for
$58,000,000 and partially allowed as a Plan Class 1
priority non-tax claim against ENA for $70,441;
(2) Claim No. 14270 will be reduced and allowed as a Plan
Class 185 guaranty claim against Enron for $25,000,000;
(3) the parties will mutually release each other from all
claims related to the Contracts and Guaranty Agreement;
and
(4) all liabilities scheduled by the applicable Debtors on
their Schedules of Financial Affairs in favor of El Paso
will be irrevocably withdrawn with prejudice, and to the
extent applicable expunged, and the scheduled liabilities
related to El Paso will be disallowed in their entirety.
Before the Petition Date, Enron Corp. and Enron North America
Corp. entered into various contracts with El Paso Natural Gas
Company involving the Debtors' supply of gas and other services
to El Paso. Enron Corp. issued a Guaranty Agreement as credit
support for the Contracts.
On Oct. 15, 2002, El Paso filed Claim No. 12891 against ENA for
$127,915,076 and Claim No. 14270 against Enron Corp. for
$25,003,519.
In a stipulation, approved by the Court on Feb. 15, 2005, the
parties agreed that $70,441 of Claim No. 12891 would be allowed
as an administrative priority claim, with the remainder of the
Claim being reclassified as a general unsecured claim against
ENA, relates Evan R. Fleck, Esq., at Cadwalader, Wickersham &
Taft LLP, in New York, relates.
After further negotiations, the Reorganized Debtors and EL Paso
entered into a settlement agreement to resolve the remaining
claims.
Headquartered in Houston, Texas, Enron Corporation filed for
chapter 11 protection on December 2, 2001 (Bankr. S.D.N.Y. Case
No. 01-16033) following controversy over accounting procedures,
which caused Enron's stock price and credit rating to drop
sharply. Judge Gonzalez confirmed the Company's Modified Fifth
Amended Plan on July 15, 2004, and numerous appeals followed. The
Debtors' confirmed chapter 11 Plan took effect on Nov. 17, 2004.
Albert Togut, Esq., at Togut Segal & Segal LLP and Brian S. Rosen,
Esq., at Weil, Gotshal & Manges LLP represent the Debtor. Jeffrey
K. Milton, Esq., at Milbank, Tweed, Hadley & McCloy LLP represents
the Official Committee of Unsecured Creditors.
ENTERGY NEW ORLEANS: Exclusive Period Hearing Scheduled on Oct. 23
------------------------------------------------------------------
Judge Jerry A. Brown of the U.S. Bankruptcy Court for the
Eastern District of Louisiana resets and continues for Monday,
Oct. 23, 2006, at 9:30 a.m., the hearing on Entergy New Orleans
Inc.'s request to extend the period by which it has the exclusive
right to file a plan of reorganization until Dec. 19, 2006, and
the period to solicit and obtain acceptance of that plan until
Feb. 15, 2007.
The Court's previous order extending the Exclusive Periods will
continue to be effective until the court rules on the Debtor's
request.
Headquartered in Baton Rouge, Louisiana, Entergy New Orleans Inc.
-- http://www.entergy-neworleans.com/-- is a wholly owned
subsidiary of Entergy Corporation. Entergy New Orleans provides
electric and natural gas service to approximately 190,000 electric
and 147,000 gas customers within the city of New Orleans. Entergy
New Orleans is the smallest of Entergy Corporation's five utility
companies and represents about 7% of the consolidated revenues and
3% of its consolidated earnings in 2004. Neither Entergy
Corporation nor any of Entergy's other utility and non-utility
subsidiaries were included in Entergy New Orleans' bankruptcy
filing. Entergy New Orleans filed for chapter 11 protection on
Sept. 23, 2005 (Bankr. E.D. La. Case No. 05-17697). Elizabeth J.
Futrell, Esq., and R. Partick Vance, Esq., at Jones, Walker,
Waechter, Poitevent, Carrere & Denegre, L.L.P., represent the
Debtor in its restructuring efforts. Carey L. Menasco, Esq.,
Philip Kirkpatrick Jones, Jr., Esq., and Joseph P. Hebert, Esq.,
at Liskow & Lewis, APLC, represent the Official Committee of
Unsecured Creditors. When the Debtor filed for protection from
its creditors, it listed total assets of $703,197,000 and total
debts of $610,421,000. (Entergy New Orleans Bankruptcy News,
Issue No. 24; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)
ENTERGY NEW ORLEANS: Court Lifts Stay to Permit Tax Settlement
--------------------------------------------------------------
The U.S. Bankruptcy Court for the Eastern District of Louisiana
lifts the automatic stay for the sole purpose of permitting the
U.S. Internal Revenue Service, Entergy New Orleans, Inc., and
Entergy Corp. and its subsidiaries to commence, continue or become
a party to a proceeding before the U.S. Tax Court with respect to
the Disputed Tax Claims for 1997 through 2000.
As reported in the Troubled Company Reporter on Aug. 11, 2006,
ENOI objected to the three proofs of claim filed by the U.S.
Internal Revenue Service in ENOI's bankruptcy case:
(1) Claim No. 88 for Federal Insurance Contributions Act and
withholding taxes, in the amount of $5,292;
(2) Claim No. 172, which was replaced by Claim No. 176; and
(3) Claim No. 176, which asserts both general unsecured
claims for $348,024,300 and unsecured priority tax claims
for $2,174,811,897.
The Debtor explains that Claim No. 176 asserts claims for these
tax periods:
Tax Due Interest Due to
Year Ended Principal Amount the Petition Date
---------- ---------------- -----------------
12/31/1997 $97,373,342 $63,229,960
12/31/1998 63,082,786 33,117,149
12/31/1999 48,703,221 19,876,625
12/31/2000 17,557,556 5,057,968
12/31/2002 959,975,933 5,057,968
12/31/2004 515,225,021 5,057,968
Headquartered in Baton Rouge, Louisiana, Entergy New Orleans Inc.
-- http://www.entergy-neworleans.com/-- is a wholly owned
subsidiary of Entergy Corporation. Entergy New Orleans provides
electric and natural gas service to approximately 190,000 electric
and 147,000 gas customers within the city of New Orleans. Entergy
New Orleans is the smallest of Entergy Corporation's five utility
companies and represents about 7% of the consolidated revenues and
3% of its consolidated earnings in 2004. Neither Entergy
Corporation nor any of Entergy's other utility and non-utility
subsidiaries were included in Entergy New Orleans' bankruptcy
filing. Entergy New Orleans filed for chapter 11 protection on
Sept. 23, 2005 (Bankr. E.D. La. Case No. 05-17697). Elizabeth J.
Futrell, Esq., and R. Partick Vance, Esq., at Jones, Walker,
Waechter, Poitevent, Carrere & Denegre, L.L.P., represent the
Debtor in its restructuring efforts. Carey L. Menasco, Esq.,
Philip Kirkpatrick Jones, Jr., Esq., and Joseph P. Hebert, Esq.,
at Liskow & Lewis, APLC, represent the Official Committee of
Unsecured Creditors. When the Debtor filed for protection from
its creditors, it listed total assets of $703,197,000 and total
debts of $610,421,000. (Entergy New Orleans Bankruptcy News,
Issue No. 24; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)
EVANS INDUSTRIES: Plan Confirmation Hearing Scheduled on Oct. 17
----------------------------------------------------------------
The Honorable Jerry A. Brown of the U.S. Bankruptcy Court for the
Eastern District of Louisiana will convene a hearing at 2:00 p.m.,
on Oct. 17, 2006, to consider confirmation of Evans Industries,
Inc., and its debtor-affiliates' Amended Plan of Reorganization.
The hearing will be held at Courtroom 705, Hale Boggs Federal
Building, 501 Magazine Street in New Orleans, Louisiana.
The Debtors' Plan contemplates the sale of substantially all of
their assets to the highest bidder at an auction. Proceeds from
the sale will be used first to satisfy administrative and priority
claims. Excess sale proceeds and certain residual assets will be
transferred to a Distribution Trust for the benefit of general
unsecured creditors.
An entity called New Evans has been designated as the stalking-
horse bidder for the Debtors' assets. New Evans proposes to
acquire these assets for a $2.5 million cash payment plus the
assumption of debt. According to the Debtors, approximately
$617,251, plus the Residual Assets, will be vested to the
Distribution Trust under the deal with New Evans.
Treatments of Claims
The winning bidder for the Debtors' assets will assume the
postpetition secured claim of Frost National Bank and Frost's
liens will attach to all assets transferred to the winning bidder
as first priority, senior secured liens.
If the winning bidder does not assume Frost's claim, the claim
will be paid in full from the sale proceeds prior to any other
payments contemplated under the plan.
GE Commercial Finance will be paid an agreed amount from the sale
proceeds for the purchase of GE Commercials' equipment. All
assets encumbered by GE Commercial will be transferred to the
winning bidder.
As of the petition date, the Debtors owed CIT Equipment Finance
approximately $1.2 million in principal and accrued interest,
$57,000 in late charges and $9,000 in attorneys' fees, on account
of various loans.
If New Evans will win at the auction, CIT's claim will be paid in
cash in an amount agreed upon by New Evans and CIT. The Court
will conduct a valuation hearing to determine the value of CIT's
collateral if the parties fail to reach an agreement over the
payments due to CIT.
CIT will also be allowed to bid for its collateral at the auction
and offset the total amount of its claim against the value of its
collateral.
The Distribution Trustee will pay the secured claim of ASI Federal
Credit Union/SBA from the proceeds of the pledged business
interruption insurance.
The Debtors estimate the secured claim of Amegy Bank at zero and
concludes that no payment is necessary under this class.
Sydney Longwell's secured claim will be either paid in full on the
effective date of the Plan or assumed by the winning bidder.
All property encumbered by the secured claim of Janice Evans,
Janice Hamilton and Gary Hamilton will be sold and the proceeds
distributed to these creditors up to the allowed amount of their
claims. The Official Committee of Unsecured Creditors is
currently reviewing these claims and may object to distributions
under this class. The Committee intends to request that proceeds
from the sale of Ms. Evans and the Hamilton's collateral will be
held in escrow pending the outcome of its investigation.
Each of the secured claims of CitiCapital Commercial Corp, HSBC
Business Credit(USA), Inc. and SpiritBank will either be paid in
full on the effective date from the sale proceeds or assumed by
the winning bidder.
Any tort claimant in prepetition litigation with the Debtors will
be assigned all of the Debtors' rights under any insurance
policies covering their claims. All damages not paid by the
insurers will be treated as general unsecured claims.
Creditors electing to hold Class 14 convenience claims will
receive an amount equal to 50% of their allowed claim, without
interest.
The Distribution Trustee will pay into the 401(k) account of any
creditor holding a Class 15 401(k) claim the full amount of any
unpaid, unmatched 401(k) contributions due under the plan for the
year 2001.
For the years 2002 and 2003, the wining bidder will pay into the
401(k) account the full amount of any unpaid contribution over a
period of five years without interest.
Holders of General Unsecured Claims will receive distributions
from the excess sale proceeds and residual assets held in trust by
the Distribution Trustee.
On the effective date, Equity interest will be terminated.
A full-text copy of the Disclosure Statement explaining the
Debtors' Plan is available for a fee at:
http://www.researcharchives.com/bin/download?id=061004213941
Headquartered in Harvey, Louisiana, Evans Industries, Inc. --
http://www.evansindustriesinc.com/-- manufactures and distributes
steel drums. The company filed for chapter 11 protection on
April 25, 2006 (Bankr. E.D. La. Case No. 06-10370). Eric J.
Derbes, Esq., and Melanie M. Mulcahy, Esq., at The Derbes Law
Firm, LLC, represent the Debtor. C. Davin Boldissar, Esq., at
Locke Liddell & Sapp, LLP, represents the Official Committee of
Unsecured Creditors. When the Debtor filed for protection from
its creditors, it estimated assets between $500,000 and $1 million
and debts between $10 million and $50 million.
FACTORY 2-U: Ct. OKs LECG LLC as Ch. 7 Trustee's Financial Analyst
------------------------------------------------------------------
Jeoffrey L. Burtch, the Chapter 7 trustee appointed in Factory 2-U
Stores, Inc., and its debtor-affiliates' cases, obtained
permission from the U.S. Bankruptcy Court for the District of
Delaware to employ LECG, LLC, as his financial analysts.
As reported in the Troubled Company Reporter on Sept. 4, 2006,
LECG will:
a) provide analysis on avoidance action issues related to the
garment industry, factors, and insolvency; and
b) provide consulting services and objective and independent
analysis relating to:
i) financial and valuation analysis; and
ii) other accounting and financial issues relating to
pending or future litigation in the Debtor's chapter 11
case.
Miriam M. Leder, an associate at LECG, disclosed that the firm's
professionals bill:
Professional Hourly Rate
------------ -----------
Principals & Directors $370 - $600
Managing consultants $370 - $510
Consultants $155 - $455
Case Assistants & Research $75 - $170
Analyst
To the best of the Trustee's knowledge, LECG does not represent
any interest adverse to the Trustee or the Chapter 7 estate and is
a "disinterested person" as the term is defined in Section 101(14)
of the Bankruptcy Code.
Headquartered in San Diego, California, Factory 2-U Stores, Inc.,
-- http://www.factory2-u.com/-- operates a chain of off-price
retail apparel and housewares stores in 10 states, mostly in the
western and southwestern US. The stores sell branded casual
apparel for the family, as well as selected domestics, footwear,
and toys and household merchandise. The Company filed for chapter
11 protection on January 13, 2004 (Bankr. Del. Case No. 04-10111).
The Court converted the Debtors' case into a chapter 7 proceeding
on Jan. 27, 2005, and appointed Jeoffrey L. Burtch as trustee. M.
Blake Cleary, Esq., and Robert S. Brady, Esq., at Young Conaway
Stargatt & Taylor, LLP, represent the Debtors in their bankruptcy
cases. When the Debtors filed for protection from their
creditors, they listed $136,485,000 in total assets and
$73,536,000 in total debts. The Court appointed Jeoffrey L.
Burtch as the Chapter 7 Trustee. Adam Singer, Esq., at Cooch and
Taylor represents the Chapter 7 Trustee.
FACTORY 2-U: Ch. 7 Trustee Hires Heiman Gouge as Special Counsel
----------------------------------------------------------------
The U.S. Bankruptcy Court for the District of Delaware allowed
Jeoffrey L. Burtch, the Chapter 7 trustee appointed in Factory 2-U
Stores, Inc., and its debtor-affiliates' cases, to employ Heiman,
Gouge & Kaufman, LLP, as his litigation counsel.
As reported in the Troubled Company Reporter on Sept. 4, 2006,
Heiman Gouge will provide all other necessary legal advice to the
Trustee in connection with the investigation and prosecution of
postpetition causes of action designated by the Trustee.
Heiman Gouge's The firm's professionals bill:
Professional Designation Hourly Rate
------------ ----------- -----------
Henry A. Heiman, Esq. Partner $335
Susan E. Kaufman, Esq. Partner $300
January L. Reif Paralegal $125
Mr. Heiman assured the Court that his firm does not represent any
interest adverse to the Trustee nor the Chapter 7 estate and is
disinterested as that term is defined in Section 101(14) of the
Bankruptcy Code.
Headquartered in San Diego, California, Factory 2-U Stores, Inc.,
-- http://www.factory2-u.com/-- operates a chain of off-price
retail apparel and housewares stores in 10 states, mostly in the
western and southwestern US. The stores sell branded casual
apparel for the family, as well as selected domestics, footwear,
and toys and household merchandise. The Company filed for chapter
11 protection on January 13, 2004 (Bankr. Del. Case No. 04-10111).
The Court converted the Debtors' case into a chapter 7 proceeding
on Jan. 27, 2005, and appointed Jeoffrey L. Burtch as trustee. M.
Blake Cleary, Esq., and Robert S. Brady, Esq., at Young Conaway
Stargatt & Taylor, LLP, represent the Debtors in their bankruptcy
cases. When the Debtors filed for protection from their
creditors, they listed $136,485,000 in total assets and
$73,536,000 in total debts. The Court appointed Jeoffrey L.
Burtch as the Chapter 7 Trustee. Adam Singer, Esq., at Cooch and
Taylor represents the Chapter 7 Trustee.
FEDERAL MOGUL: Court OKs Entry Into Hercules Payment Agency Pact
----------------------------------------------------------------
The U.S. Bankruptcy Court for the District of Delaware granted the
request made by Federal-Mogul Corporation, T&N Limited, Ferodo
America, Inc. and Gasket Holdings Inc., together with the Official
Committee of Asbestos Claimants and Professor Eric D. Green, as
the duly appointed legal representative for future asbestos-
related personal injury claimants, to enter into a payment agency
agreement relating to the Hercules asbestos liability policy.
As reported in the Troubled Company Reporter on Aug. 23, 2006,
James E. O'Neill, Esq., at Pachulski Stang Ziehl Young Jones &
Weintraub LLP, in Wilmington, Delaware, says that the core of the
Hercules Agreement, is the provision of a mechanism for
distribution of recoveries obtained under the Hercules Policy to:
1. a trust to be established for the Debtors' U.K. and certain
non-U.K. asbestos personal injury claimants; and
2. a trust to be established for the Debtors' U.S. and certain
non-U.S. asbestos personal injury claimants.
The distribution will be made in accordance with the division of
insurance recoveries that the Court previously approved as part of
the U.K. Global Settlement Agreement, Mr. O'Neill adds.
The Hercules Agreement is conditioned on the approval of the U.K.
Debtors' company voluntary arrangements that, among others,
establish the priority scheme of the distribution of the Hercules
Recoveries.
Hercules Policy
The Hercules Policy obligates the insurer to indemnify T&N for all
"Ultimate Net Loss" in excess of the retained limit, without
limitation, for claims made or brought on or after July 1, 1996,
that relate to the exposure of asbestos, asbestos products,
asbestos dust, or asbestos fibers that were mined, manufactured,
sold, installed or distributed prior to July 1, 1996.
The Policy covers liabilities of T&N as well as certain T&N
subsidiaries and subsidiary undertakings existing on July 1, 1996.
However, T&N is the sole policyholder and is the only entity
entitled to payment under the policy -- although it may be the
case that GHI and Ferodo are entitled to a certain proportion of
the Hercules Recoveries once they have been paid to T&N.
The Hercules Policy has an aggregate limit of GBP500 million --
approximately $895 million -- with a retained limit of
GBP690 million -- approximately $1.235 billion. The retained
limit has diminished to GBP361,802,160. Thus, before either the
U.K. Asbestos Trust or the U.S. Asbestos Trust can access coverage
under the policy, the retention must be exhausted.
The Policy, purchased by T&N in 1996, is underwritten by T&N's
captive insurance company, Curzon Insurance, Ltd., and reinsured
by three reinsurance companies.
Hercules Payment Agency Agreement
The parties to the Hercules Agreement are:
-- T&N
-- the U.K. Administrators
-- Phillip Rodney Sykes and Jeremy Mark Willmont;
-- the T&N Asbestos Trustee Company Limited -- the U.K.
Asbestos Trustee;
-- the Asbestos Committee;
-- the Futures Representative;
-- Federal-Mogul; and
-- Ferodo and GHI, potential additional beneficiaries.
Messrs. Sykes and Willmont will serve as payment agents under the
Hercules Agreement, acting solely as agents of T&N, the U.K.
Asbestos Trustee and the U.S. Asbestos Trust, once the U.S.
Asbestos Trustee has acceded to the Hercules Agreement.
The Hercules Agreement contemplates that after the creation of the
U.S. Asbestos Trust, the U.S. Asbestos Trustees will accede to the
Agreement. Upon the trustee's accession, the U.S. Asbestos Trust
will be deemed to be a party in place of the Asbestos Committee,
the Futures Representative, Ferodo and GHI.
Even after they will be substituted by the U.S. Asbestos Trust,
the Asbestos Committee and the Futures Representative will
maintain rights to:
a. consult with the Payment Agents and the U.K. Asbestos
Trustee in determining an appropriate reserve to pay claims
handling costs or costs associated with obtaining the
Hercules Recoveries;
b. act unanimously and instruct the Payment Agents in
investing any funds held prior to the establishment of the
U.S. Asbestos Trust;
c. consult with the U.K. Asbestos Trustee regarding any
remuneration to be paid to the Payment Agents;
d. notify the Payment Agents if no further Hercules Recoveries
will be paid; and
e. together with T&N and the U.K. Asbestos Trustee, terminate
either or both Payment Agent(s) and participate in the
appointment of successor Payment Agents.
The competing interests of the U.S. and the U.K. Asbestos Trusts
and T&N in the Hercules Recoveries necessitate a structure where
the recoveries are administered and distributed by a third-party,
Mr. O'Neill tells the Court. Pursuant to the terms of the CVAs
-- and, after it comes into effect, the Debtors' Plan of
Reorganization -- Mr. O'Neill says T&N will hold in trust all
recoveries obtained under the Hercules Policy for the ultimate
benefit of asbestos personal injury claimants. If T&N should
receive any Hercules Recoveries, those amounts will be held in
trust by T&N for the Payment Agents. Any Hercules Recoveries
received by T&N will be held by T&N in an account in its name --
the Hercules Receipt Account -- from which the Payment Agents will
have sole authority to transfer or withdraw funds.
The Payment Agents will collect all Hercules Recoveries into an
account to be established jointly in the names of the U.K.
Asbestos Trustee and the U.K. Asbestos Trust -- the Hercules
Waterfall Account. The Payment Agents will give instructions to
the bank at which the Hercules Receipt Account is maintained to
transfer all funds in the Hercules Receipt Account to the Hercules
Waterfall Account on the day the funds are received, ensuring that
Hercules Recoveries are aggregated as soon as possible into the
Hercules Waterfall Account.
Agreement is Ministerial but Necessary
GHI and Ferodo are parties to the Hercules Agreement because they
may ultimately be determined to be entitled to a portion of the
Hercules Recoveries and, accordingly, have an interest in
preserving those recoveries pending the creation of the U.S.
Asbestos Trusts, Mr. O'Neill explains.
The Company will enter into the Agreement as the parent company of
all of the Debtors, and because it has certain responsibilities
and rights under the Agreement.
The Debtors assert that entering into the Hercules Agreement is
largely ministerial, but nonetheless necessary. The Agreement
provides for fair, third-party control over the Hercules
Recoveries are allocated as contemplated in the U.K. Global
Settlement, the CVAs and, when effective, the Debtors' Plan of
Reorganization.
Because the Debtors believe that the U.K. Asbestos Trust will be
established before the U.S. Asbestos Trust, they believe it is
necessary for the parties to enter into the Hercules Agreement now
and provide for the possibility that T&N may receive Hercules
Recoveries before the U.S. Trust is established. Hence, the
Debtors, the Asbestos Committee and the Futures Representative
want to enter into the Agreement because it is possible that the
Hercules Recoveries will come into the Payment Agents' control
before the U.S. Asbestos Trust is established.
Headquartered in Southfield, Michigan, Federal-Mogul Corporation
-- http://www.federal-mogul.com/-- is one of the world's largest
automotive parts companies with worldwide revenue of some
$6 billion. The Company filed for chapter 11 protection on
Oct. 1, 2001 (Bankr. Del. Case No. 01-10582). Lawrence J. Nyhan
Esq., James F. Conlan Esq., and Kevin T. Lantry Esq., at Sidley
Austin Brown & Wood, and Laura Davis Jones Esq., at Pachulski,
Stang, Ziehl, Young, Jones & Weintraub, P.C., represent the
Debtors in their restructuring efforts. When the Debtors filed
for protection from their creditors, they listed $10.15 billion in
assets and $8.86 billion in liabilities. Federal-Mogul Corp.'s
U.K. affiliate, Turner & Newall, is based at Dudley Hill,
Bradford. Peter D. Wolfson, Esq., at Sonnenschein Nath &
Rosenthal; and Charlene D. Davis, Esq., Ashley B. Stitzer, Esq.,
and Eric M. Sutty, Esq., at The Bayard Firm represent the Official
Committee of Unsecured Creditors. (Federal-Mogul Bankruptcy News,
Issue No. 113; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)
FLEXTRONICS INT'L: Moody's Assigns Loss-Given-Default Ratings
-------------------------------------------------------------
In connection with Moody's Investors Service's implementation
of its new Probability-of-Default and Loss-Given-Default rating
methodology, the rating agency confirmed its Ba1 Corporate
Family Rating for Flextronics International Ltd.
Additionally, Moody's revised its probability-of-default ratings
and assigned loss-given-default ratings on these loans and bond
debt obligations:
Projected
Old POD New POD LGD Loss-Given
Debt Issue Rating Rating Rating Default
---------- ------- ------- ------ ----------
$500m 6.25%
Senior Subor.
Notes due 2014 Ba2 Ba2 LGD5 85%
$400m 6.5%
Senior Subor.
Notes due 2013 Ba2 Ba2 LGD5 85%
$7.7m 9.875%
Senior Subor.
notes due 2010 Ba2 Ba2 LGD5 85%
Moody's explains that current long-term credit ratings are
opinions about expected credit loss, which incorporate both the
likelihood of default and the expected loss in the event of
default. The LGD rating methodology will disaggregate these two
key assessments in long-term ratings. The LGD rating methodology
will also enhance the consistency in Moody's notching practices
across industries and will improve the transparency and accuracy
of Moody's ratings as Moody's research has shown that credit
losses on bank loans have tended to be lower than those for
similarly rated bonds.
Probability-of-default ratings are assigned only to issuers, not
specific debt instruments, and use the standard Moody's alpha-
numeric scale. They express Moody's opinion of the likelihood
that any entity within a corporate family will default on any of
its debt obligations.
Loss-given-default assessments are assigned to individual rated
debt issues -- loans, bonds, and preferred stock. Moody's opinion
of expected loss are expressed as a percent of principal and
accrued interest at the resolution of the default, with
assessments ranging from LGD1 (loss anticipated to be 0% to 9%) to
LGD6 (loss anticipated to be 90% to 100%).
Headquartered in Singapore, Flextronics International Ltd.
-- http://www.flextronics.com/-- provides electronics
manufacturing services through a network of facilities in over
30 countries worldwide.
GCI INC: Moody's Holds Corporate Family Rating at Ba3
-----------------------------------------------------
Moody's Investors Service affirms the Ba3 Corporate Family Rating
and B1 senior unsecured rating of GCI Inc. and changed the outlook
to stable from negative. The ratings reflect a Ba3 probability of
default and a loss given default assessment of LGD 5 for the
senior unsecured notes.
The outlook change to stable reflects Moody's expectations that
GCI is likely to grow its operating profit and free cash flow very
modestly over the next few years, but that much of its cash flow
is likely to be directed towards share buy backs, limiting debt
reduction.
The Ba3 Corporate Family Rating reflects GCI's strong incumbent
market position within the Alaskan long distance, cable television
and Internet service markets, with a growing share of local access
lines. The rating also considers our view that the Alaskan market
is small and the company's exposure to long distance revenues is
relatively high, which limits its growth potential and decreases
the certainty of expected results over the medium term. Finally,
the rating incorporates GCI's stated willingness to meaningfully
increase its leverage from current levels of roughly 3.5x and our
belief that the company is unlikely to reduce its leverage in any
event, as it directs free cash flow to shareholders via share buy
backs.
Outlook Actions:
* Issuer: GCI, Inc.
* Outlook, Changed To Stable From Negative
GCI, Inc., is a wholly owned subsidiary of General Communications
Inc, an integrated telecommunications provider based in Anchorage,
Alaska.
GENERAL MOTORS: U.S. Divisions Deliver 338,380 Vehicles In Sept.
----------------------------------------------------------------
General Motors Corp.'s dealers in the United States sold 338,380
new cars and trucks in September. The company sold 1,385 more
retail vehicles in September than the year before. Retail truck
sales, led by full-size pickups and utilities, were up 2%. Retail
car sales were down 12%, partly due to inventory constraints of
Chevrolet Aveo, Cobalt, and Malibu. Retail sales of 246,797
vehicles were down 3% on a sales day-adjusted basis.
"GM's truck business was boosted in September by our segment-
leading fuel economy and the addition of the industry's best
coverage, including the 5-year/100,000 mile warranty program,"
Mark LaNeve, General Motors North America vice president for
vehicle sales, service, and marketing, said.
GM continues to reduce its reliance on low-margin daily rental
sales. Sales to daily rental companies were down 26% compared
with year-ago levels, while its commercial fleet business was up
12%. This ongoing planned pull-down of low-margin daily rental
sales resulted in total September sales of 338,380 being down 6.8%
compared with a year ago on a sales day-adjusted basis.
"Our retail business was solid in September and in line with
expectations. Importantly, we continue to experience strong
customer demand for our launch products and industry-leading
lineup of fuel-efficient vehicles. Having products like the
Chevrolet Cobalt, Malibu, and newly redesigned 2007 Aveo in such
high demand in the market place is gratifying," LaNeve said.
"We're on track to sell more than a million 2006 model year
vehicles this year that achieve 30 mpg or better on the highway.
We will go even further for the 2007 model year by increasing the
number of fuel-sipping vehicle models in the '30 mpg or Over Club'
by 9 vehicles, or more than 60%, to 23 models. More Americans
every day are realizing we have a great story in fuel economy.
"In addition to our great lineup of fuel efficient vehicles, we
have launched the best warranty coverage of any full-line
automaker with 5 years/100,000 mile powertrain, courtesy
transportation and roadside assistance for each of our 2007
models," Mr. LaNeve added. "And, there is no deductible for the
warranty, which is fully transferable."
Due to the success of new products, and recent support of the best
warranty coverage of any full-line automaker, GM has seen sales
over the last few months above the targets set in the North
America Turnaround Plan. GM market share has improved in every
quarter of 2006, and was at about 25% for the third quarter 2006.
Calendar year-to-date, GM's retail selling rate remains above
3 million vehicles on an annualized basis and was 3.15 million in
the third quarter.
Saab, Cadillac, Hummer, Buick, and GMC all saw retail sales
increases in September. Saab led the pack with retail sales up a
powerful 45%, driven by 9-3 and 9-7X. Cadillac sales are up 22%
retail, with strong showings by DTS, STS, SRX, and the entire
Escalade lineup. Hummer continued to show very positive results
with H3 sales up 19%, helping the division sport an overall 10%
retail hike. Buick retail sales are up 4% led by Lucerne,
LaCrosse, Rainier, and Terraza. GMC was up 3% retail, with sales
increases of the Sierra, Yukon, and Yukon XL.
"Customers are recognizing GM's leadership position when it comes
to products that offer outstanding value and fuel economy, whether
that's a small car or a full-size pickup," Mr. LaNeve said.
"We just revealed our brand new 2007 Chevrolet Silverado and GMC
Sierra full size pickups at the State Fair of Texas -- two
vehicles that lead their segment in estimated highway fuel economy
and outstanding value." GM has announced carry-over pricing on
the most popular versions of the all-new 2007 Chevrolet Silverado
and GMC Sierra pickups.
Certified Used Vehicles
September sales for all certified GM brands, including GM
Certified Used Vehicles, Cadillac Certified Pre-Owned Vehicles,
Saturn Certified Pre-Owned Vehicles, Saab Certified Pre-Owned
Vehicles, and HUMMER Certified Pre-Owned Vehicles, were
45,948 units, up 11% from last September. Total year-to-date
certified GM sales are 393,543 units, down 2% from the same period
last year.
GM Certified Used Vehicles, the industry's top selling certified
pre-owned brand, posted the highest September sales performance
ever for a certified brand with sales of 39,775 units, up over 12%
percent from September 2005. Year-to-date sales for GM Certified
Used Vehicles are 339,980 units, equivalent to the same period
last year.
Cadillac Certified Pre-Owned Vehicles posted 3,818 sales in
September, up 31% from last September. Saturn Certified Pre-Owned
Vehicles sold 1,483 units, down 37%. Saab Certified Pre-Owned
Vehicles sold 760 units, down 11%. In its ninth month of
operation, HUMMER Certified Pre-Owned sold 112 units.
"GM Certified Used Vehicles, the industry's best-selling
manufacturer-certified brand, posted the segment's strongest
September sales performance ever, up more than 12% over September
2005," Mr. LaNeve said. "GM Certified continues to lead the
certified category in sales, as more consumers take advantage of
the quality, value and peace of mind offered by top-quality used
vehicles backed by GM."
GM North America Reports September and Third Quarter 2006
Production, 2006 Fourth Quarter Production Forecast Revised at
1.110 Million Vehicles
In September, GM North America produced 387,000 vehicles (161,000
cars and 226,000 trucks). This is down 67,000 units or 15%
compared to September 2005 when the region produced 454,000
vehicles (165,000 cars and 289,000 trucks). (Production totals
include joint venture production of 22,000 vehicles in September
2006 and 26,000 vehicles in September 2005.)
GM North America built 1.050 million vehicles (417,000 cars and
633,000 trucks) in the third quarter of 2006. This is down 96,000
units, or 8%, compared with third quarter 2005 when the region
produced 1.146 million vehicles (423,000 cars and 723,000 trucks).
Additionally, the region's 2006 fourth quarter production forecast
is revised at 1.110 million vehicles (446,000 cars and 664,000
trucks), down 2% or 20,000 units from last month's guidance. In
the fourth quarter of 2005, the region produced 1.281 million
vehicles.
GM also announced 2006 revised third and fourth quarter production
forecasts for its international regions.
GM Europe
GM Europe's 2006 third-quarter production forecast is revised at
374,000 vehicles, up 2,000 units from last month's guidance. In
the third quarter of 2005 the region built 412,000 vehicles. The
region's 2006 fourth quarter production forecast is revised at
445,000 units, down 6,000 units from last month's guidance. In
the fourth quarter of 2005 the region built 443,000 vehicles.
GM Asia Pacific
GM Asia Pacific's 2006 third-quarter production forecast is
revised at 430,000 vehicles, up 5,000 units from last month's
guidance. In the third quarter of 2005 the region built 409,000
vehicles. The region's 2006 fourth quarter production forecast is
revised at 496,000 units, down 28,000 units from last month's
guidance. In the fourth quarter of 2005 the region built 420,000
vehicles.
GM Latin America, Africa, and the Middle East
The region's 2006 third-quarter production forecast is revised at
216,000 vehicles, down 1,000 units from last month's guidance. In
the third quarter of 2005 the region built 207,000 vehicles. The
region's 2006 fourth quarter production forecast is revised at
215,000 units, up 4,000 from last month's guidance. In the fourth
quarter of 2005 the region built 188,000 vehicles.
About General Motors
General Motors Corp. (NYSE: GM) -- http://www.gm.com/-- the
world's largest automaker, has been the global industry sales
leader since 1931. Founded in 1908, GM employs about 317,000
people around the world. It has manufacturing operations in 32
countries and its vehicles are sold in 200 countries.
* * *
As reported in the Troubled Company Reporter on July 28, 2006,
Standard & Poor's Ratings Services held all of its ratings on
General Motors Corp. -- including the 'B' corporate credit rating,
but excluding the '1' recovery rating -- on CreditWatch with
negative implications, where they were placed March 29, 2006.
As reported in the Troubled Company Reporter on July 27, 2006,
Dominion Bond Rating Service downgraded the long-term debt ratings
of General Motors Corporation and General Motors of Canada Limited
to B. The commercial paper ratings of both companies are also
downgraded to R-3 (low) from R-3.
As reported in the Troubled Company Reporter on June 22, 2006,
Fitch assigned a rating of 'BB' and a Recovery Rating of 'RR1' to
General Motor's new $4.48 billion senior secured bank facility.
The 'RR1' is based on the collateral package and other protections
that are expected to provide full recovery in the event of a
bankruptcy filing.
As reported in the Troubled Company Reporter on June 21, 2006,
Moody's Investors Service assigned a B2 rating to the secured
tranches of the amended and extended secured credit facility of up
to $4.5 billion being proposed by General Motors Corporation,
affirmed the company's B3 corporate family and SGL-3 speculative
grade liquidity ratings, and lowered its senior unsecured rating
to Caa1 from B3. The rating outlook is negative.
GENESIS HOSPITALITY: Case Summary & 19 Largest Unsecured Creditors
------------------------------------------------------------------
Debtor: Genesis Hospitality, Inc.
dba Best Value Inn and Suites
dba America's Best Value Inn and Suites
809 Wren Road
Goodlettsville, TN 37072
Bankruptcy Case No.: 06-05578
Chapter 11 Petition Date: October 3, 2006
Court: Middle District of Tennessee (Nashville)
Judge: Keith M. Lundin
Debtor's Counsel: Steven L. Lefkovitz
Lefkovitz & Lefkovitz
618 Church Street, Suite 410
Nashville, TN 37219
Tel: (615) 256-8300
Fax: (615) 250-4926
Total Assets: $1,250,000
Total Debts: $1,475,946
Debtor's 19 Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
------ --------------- ------------
Business Loan Center Real Estate - $141,265
One Independence Point Motel - 809
Suite 102 Wren Road,
Greenville, SC 29615 Goodlettsville,
Tennessee
Bank of America $28,079
P.O. Box 1516
Newark, NJ 07101
Metropolitan Trustee $20,788
P.O. Box 196358
Nashville, TN 37219
Bank of America $18,491
P.O. Box 1516
Newark, NJ 07101
Nashville Electric Service $7,187
1214 Church Street
Nashville, TN 37246
TN Department of Revenue $4,109
Madison Suburban $1,225
Utility District
Vantage Hospitality Group Inc. $878
Alsco/National Linen Service $589
Bank of America $548
Bell South $522
Home Depot Credit Services $427
B&T Bookkeeping $425
Comcast $408
Transamerica Life Co. $392
I&I Group Inc. $293
Ecolab Pest Elimination $178
SVC Division
Cingular Wireless $93
Cricket $47
GUERRINI FAMILY: Involuntary Chapter 11 Case Summary
----------------------------------------------------
Alleged Debtor: Guerrini Family L.P.
9545 North Florida Avenue
Tampa, FL 33612-7909
Involuntary Petition Date: October 4, 2006
Case Number: 06-05383
Chapter: 11
Court: Middle District of Florida (Tampa)
Judge: Catherine Peek McEwen
Petitioners' Counsel: David E. Hammer, Esq.
David E. Hammer, P.A.
218 East Bears Avenue, Suite 360
Tampa, FL 33613-1625
Tel: (813) 274-4999
Petitioners Nature of Claim Claim Amount
----------- --------------- ------------
Keyapaha Company Unsecured Loans $100,952
Erich Steffen, President
13236 County Road 103
Crosslake, MN 56442
HEALTHCARE PARTNERS: S&P Rates $295 Million Sr. Facilities at BB
----------------------------------------------------------------
Standard & Poor's Ratings Services affirmed its 'BB' counterparty
credit rating on HealthCare Partners LLC. The outlook is stable.
At the same time, Standard & Poor's assigned its 'BB' senior
secured debt ratings to HCP's proposed senior credit facilities
consisting of a seven-year $280 million term loan due 2013 and
five-year $15 million revolver due 2011. The proceeds will be
used to refinance its current term loan outstanding and partly
finance its planned acquisition of JSA Holdings Inc., a Tampa-base
integrated provider of managed care services.
This deal was expected as part of a broader effort by HCP to
diversify its business profile and establish a platform for
extended growth beyond its core market. Financial risk is
considered modest given the relative size and the associated
financing. Pro forma debt to adjusted EBITDA (as of June 30,
2006) is expected to be conservative for the rating assignment.
By year-end 2006, JSA is expected to contribute 30% and 20% to
combined revenue and cash flow, respectively. Business risk is
mitigated by the limited nature of the integration plan and
retention of all the top officers since JSA will essentially be
run on a standalone basis under the HCP platform.
JSA is presently working through its own integration of Pinnacle
Health Systems, which is a similarly structured, but much smaller,
company based in Las Vegas.
"The rating on HCP reflects its integrated operational
relationship with HealthCare Partners Affiliates Medical Group
(collectively, HealthCare Partners), established competitive
position, strong core earnings profile, and adequate financial
flexibility," noted Standard & Poor's credit analyst Joseph
Marinucci.
"Offsetting factors include geographic and client concentration,
marginal balance sheet quality, and its acquisition oriented
growth strategy."
HCP's material size and scale in its core Los Angeles market will
facilitate its sustained competitiveness and enable the company to
further build on its core market presence. The outlook also
reflects Standard & Poor's expectation for HCP to successfully
manage through the remainder of its CIS implementation project,
sustain its earnings profile, and prudently manage its overall
growth objectives, which includes the integration of JSA.
By year-end 2007, revenue is expected to be $1.1 billion-$1.2
billion, members served is expected to be 440,000-460,000. If HCP
meets Standard & Poor's earnings expectations, pretax income would
exceed 10% and financial leverage and coverage metrics would
remain moderately conservative for the rating category and the
company's business profile as debt to EBITDA and interest coverage
would be 1.0x-1.5x and 9x-11x, respectively.
INTEGRATED HEALTH: Wants to Make $30MM Distribution to Two Classes
------------------------------------------------------------------
IHS Liquidating seeks the U.S. Bankruptcy Court for the District
of Delaware's permission to make an interim distribution of
$30,000,000 to the Allowed Claimholders in Classes 4 and 6.
Robert S. Brady, Esq., at Young Conaway Stargatt & Taylor, LLP, in
Wilmington, Delaware, relates that since the IHS Debtors' Plan of
Reorganization became effective in September 2003, one of IHS
Liquidating LLC's primary objectives has been to address and
eliminate all obstacles to distribute to holders of Allowed
Senior Lender Claims and Allowed General Unsecured Claims, which
are designated as Classes 4 and 6 under the Plan.
Mr. Brady states that the final pro rata distributions to Classes
4 and 6 cannot be accomplished until IHS Liquidating has satisfied
all allowed higher priority claims for which it is responsible.
However, IHS Liquidating may make an interim distribution to those
Classes once it establishes sufficient reserves to satisfy all
higher priority claims that have not been resolved. He notes that
if the fixing or liquidation of particular disputed claims would
unduly delay those distributions, the Plan provides that IHS
Liquidating will seek estimation or establishment of appropriate
reserves in respect of those claims.
Mr. Brady tells the Court that after three years of extensive
efforts, IHS Liquidating has positioned itself to make an interim
distribution, but can only do so if the Court estimates or sets
reserves for these Disputed Claims:
-- a potential $13,000,000 priority tax claim asserted by
the Internal Revenue Service;
-- a contingent administrative expense claim of up to
$40,000,000 by C. Taylor Pickett and Daniel J. Booth; and
-- an administrative expense claim of nearly $40,000,000 by
Abe Briarwood Corp.
The IRS Claim relates to Federal Insurance Contributions Act and
Federal Unemployment Tax Act tax assessments from 1990 through
1995 against debtor VTA Management Services, Inc., plus interest.
The Former Officers assert contingent claims for potential losses
arising out of a lawsuit asserted by Don G. Angell and his
affiliates.
The Briarwood Claim relates to a retroactive purchase price
adjustments under a Stock Purchase Agreement with the IHS
Debtors.
IHS Liquidating believes that if the Disputed Claims were
estimated pursuant to Section 502(c) of the Bankruptcy Code, the
proper estimated value of those claims would be zero.
Since the Claims are technically still outstanding, the Plan
requires either estimation or establishment of reserves for the
Disputed Claims before interim distributions to Classes 4 and 6
can be made, Mr. Brady states.
The proposal would leave approximately $22,000,000 of IHS
Liquidating's funds available for future distributions to the
Allowed Claimholders or to satisfy other obligations that may
arise.
IHS Liquidating intends to allocate $10,000,000 of those funds as
a temporary aggregate reserve to satisfy the three Disputed
Claims, if and to the extent any of them become Allowed Claims
entitled to payment from IHS Liquidating.
As additional progress is made toward the ultimate resolution of
the Disputed Claims, IHS Liquidating will seek the Court's
authority to reduce or eliminate the aggregate reserve to make
further distributions to Classes 4 and 6.
If any of the creditors object to the proposed temporary aggregate
reserve, IHS Liquidating will ask the Court to estimate those
claims at a nominal amount not to exceed $1,500,000.
Mr. Brady asserts that approval of the Motion is reasonable and
fair, given IHS Liquidating's overall financial position and the
strong likelihood that the Briarwood and the Former Officers
Claims will ultimately be disallowed and the IRS Claim will be
settled at $325,000.
IHS Liquidating wants the request approved, without prejudice to
its right to seek authority at a later time to reduce the reserve
to make further distributions to Classes 4 and 6 under the Plan.
Integrated Health Services, Inc. -- http://www.ihs-inc.com/--
operated local and regional networks that provide post-acute care
from 1,500 locations in 47 states. The Company and its
437 debtor-affiliates filed for chapter 11 protection on
February 2, 2000 (Bankr. Del. Case No. 00-00389). Rotech Medical
Corporation and its direct and indirect debtor-subsidiaries broke
away from IHS and emerged under their own plan of reorganization
on March 26, 2002. Abe Briarwood Corp. bought substantially all
of IHS' assets in 2003. The Court confirmed IHS' Chapter 11 Plan
on May 12, 2003, and that plan took effect September 9, 2003.
Michael J. Crames, Esq., Arthur Steinberg, Esq., and Mark D.
Rosenberg, Esq., at Kaye, Scholer, Fierman, Hays & Handler, LLP,
represent the IHS Debtors. On September 30, 1999, the Debtors
listed $3,595,614,000 in consolidated assets and $4,123,876,000 in
consolidated debts. (Integrated Health Bankruptcy News, Issue
No. 109; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)
INTEGRATED HEALTH: Wants Until January 2 to Object to Claims
------------------------------------------------------------
IHS Liquidating LLC asks the U.S. Bankruptcy Court for the
District of Delaware to further extend to Jan. 2, 2007, its
deadline to object to proofs of claim filed in the IHS Debtors'
Chapter 11 cases, without prejudice to its right to seek
additional extensions.
Robert S. Brady, Esq., at Young Conaway Stargatt & Taylor, LLP, in
Wilmington, Delaware, relates that since the Effective Date, the
IHS Debtors and their professionals have worked diligently to:
(i) review the pending claims objections;
(ii) perform required diligence to determine which of the
pending objections should be prosecuted;
(iii) prosecute or consensually resolve the pending claims
objections; and
(iv) ensure that all disputed claims are made the subject of a
proper objection before the expiration of the Claim
Objection Deadline.
As of the Effective Date, approximately 2,000 claims remained the
subject of pending objections.
Mr. Brady notes that as of Sept. 1, 2006, IHS Liquidating is not
aware of a pending unresolved proof of claim. However, IHS
Liquidating believes it is appropriate to extend the current
deadline to avoid a circumstance where objectionable claims are
inadvertently allowed.
The Court will hold a hearing to consider IHS Liquidating's
request on Oct. 13, 2006, at 9:30 a.m. By application of
Del. Bankr. L.R. 9006-2, IHS Liquidating's Claims Objection
Deadline is automatically extended until the Court rules on the
request.
Integrated Health Services, Inc. -- http://www.ihs-inc.com/--
operated local and regional networks that provide post-acute care
from 1,500 locations in 47 states. The Company and its
437 debtor-affiliates filed for chapter 11 protection on
February 2, 2000 (Bankr. Del. Case No. 00-00389). Rotech Medical
Corporation and its direct and indirect debtor-subsidiaries broke
away from IHS and emerged under their own plan of reorganization
on March 26, 2002. Abe Briarwood Corp. bought substantially all
of IHS' assets in 2003. The Court confirmed IHS' Chapter 11 Plan
on May 12, 2003, and that plan took effect September 9, 2003.
Michael J. Crames, Esq., Arthur Steinberg, Esq., and Mark D.
Rosenberg, Esq., at Kaye, Scholer, Fierman, Hays & Handler, LLP,
represent the IHS Debtors. On September 30, 1999, the Debtors
listed $3,595,614,000 in consolidated assets and $4,123,876,000 in
consolidated debts. (Integrated Health Bankruptcy News, Issue
No. 109; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)
INTERSTATE BAKERIES: Darst Wants Stay Lifted to Pursue Appeal
-------------------------------------------------------------
Richard L. Darst asks the U.S. Bankruptcy Court for the Western
District of Missouri to modify the automatic stay to permit him to
pursue his Appeal in the 7th Circuit Court of Appeals of the
decision issued by Indiana District Court in favor of Interstate
Bakeries Corporation and its debtor-affiliates.
As trustee for the bankruptcy estate of Krystof Chalimoniuk,
Richard L. Darst filed a lawsuit against Interstate Brands
Corporation in the United States District Court for the Southern
District of Indiana, Indianapolis Division. The Lawsuit involves
Interstate Brands' alleged denial of leave and retaliatory
discharge of Mr. Chalimoniuk in violation of the Family Medical
Leave Act, Section 2601 of the Labor Code.
In connection with an adverse summary judgment in the Lawsuit,
Mr. Darst filed an appeal in the Seventh Circuit Court of
Appeals. The Appeal was stayed as a result of IBC's bankruptcy
filing.
Subsequently, Mr. Darst filed a timely proof of claim against the
Debtors, submitted the questionnaire required by the Court-
approved Tort Claims Resolution Procedure and sought mediation.
On July 11, 2006, Mr. Darst and IBC participated in mediation
with Judge Ferderman. However, the mediation was not successful.
Headquartered in Kansas City, Missouri, Interstate Bakeries
Corporation is a wholesale baker and distributor of fresh baked
bread and sweet goods, under various national brand names,
including Wonder(R), Hostess(R), Dolly Madison(R), Baker's Inn(R),
Merita(R) and Drake's(R). The Company employs approximately
32,000 in 54 bakeries, more than 1,000 distribution centers and
1,200 thrift stores throughout the U.S. The Company and seven of
its debtor-affiliates filed for chapter 11 protection on
September 22, 2004 (Bankr. W.D. Mo. Case No. 04-45814). J. Eric
Ivester, Esq., and Samuel S. Ory, Esq., at Skadden, Arps, Slate,
Meagher & Flom LLP, represent the Debtors in their restructuring
efforts. When the Debtors filed for protection from their
creditors, they listed $1,626,425,000 in total assets and
$1,321,713,000 (excluding the $100,000,000 issue of 6.0% senior
subordinated convertible notes due August 15, 2014 on August 12,
2004) in total debts. (Interstate Bakeries Bankruptcy News, Issue
No. 48; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)
J. RAY MCDERMOTT: Moody's Assigns Loss-Given-Default Rating
-----------------------------------------------------------
In connection with Moody's Investors Service's implementation of
its new Probability-of-Default and Loss-Given-Default rating
methodology for the oilfield service and refining and marketing
sectors last week, the rating agency revised its Corporate Family
Rating for J. Ray McDermott, S.A., to B2 from B1.
Moody's also raised its rating on the company's Senior Secured
Guaranteed Revolving Credit Facility, and Senior Secured
Guaranteed Letter of Credit Facility to Ba3 from B1, and assigned
those credit facilities an LGD2 rating suggesting a 24% projected
loss-given default.
Moody's explains that current long-term credit ratings are
opinions about expected credit loss which incorporate both the
likelihood of default and the expected loss in the event of
default. The LGD rating methodology will disaggregate these two
key assessments in long-term ratings. The LGD rating methodology
will also enhance the consistency in Moody's notching practices
across industries and will improve the transparency and accuracy
of Moody's ratings as Moody's research has shown that credit
losses on bank loans have tended to be lower than those for
similarly rated bonds.
Probability-of-default ratings are assigned only to issuers, not
specific debt instruments, and use the standard Moody's alpha-
numeric scale. They express Moody's opinion of the likelihood
that any entity within a corporate family will default on any of
its debt obligations.
Loss-given-default assessments are assigned to individual rated
debt issues -- loans, bonds, and preferred stock. Moody's opinion
of expected loss are expressed as a percent of principal and
accrued interest at the resolution of the default, with
assessments ranging from LGD1 (loss anticipated to be 0% to 9%) to
LGD6 (loss anticipated to be 90% to 100%).
Headquartered in Houston, Texas, J. Ray McDermott, S.A. -- a
McDermott International subsidiary -- designs, fabricates, and
installs platforms and pipelines for offshore oil and gas
production. The company's primary areas of operation include the
Gulf of Mexico, the Asia/Pacific region, the Middle East, and the
Caspian Sea.
KMART CORP: Court Approves Pact Resolving Conaway's $19.6MM Claim
-----------------------------------------------------------------
The U.S. Bankruptcy Court for the Northern District of Illinois
approved a stipulation resolving Charles Conaway's claim against
Kmart Corporation.
In the Stipulation, the parties agree:
* that Mr. Conaway's proof of claim is allowed as a general,
prepetition, unsecured, non-priority Class 5 Claim for
$1,250,000, and entitled to the treatment afforded holders
of allowed Class 5 Claims under the Debtors' Plan of
Reorganization. The $1,250,000 Settlement Amount is not
subject to set-off, offset, or any other defense of any
kind;
* on an initial distribution to Mr. Conaway on account of the
Allowed Conaway Claim -- in an amount equal to 95% of his
pro rata share of the trade vendor/lease rejection
claimholder shares. The remaining portion of the Allowed
Conaway Claim will receive distributions as otherwise
provided for in the Plan;
* within five business days of payment of the Settlement
Amount, Mr. Conaway will withdraw with prejudice (i) the
Conaway Proof of Claim, along with any other outstanding
claims asserted in any of the Debtors' bankruptcy cases, and
(ii) his request to overrule; and
* as of September 11, 2006, Kmart and Conaway forever released
each other from any liability, including all claims relating
to, or arising out of the Conaway Proof of Claim and the
arbitration.
As reported in the Troubled Company Reporter on Aug. 8, 2006,
Kmart asked the Court to disallow Mr. Conaway's Proof of Claim
in its entirety, or, in the alternative, equitably subordinate the
Claim.
Mr. Conaway, Kmart's former chairman and chief executive officer,
filed Claim No. 38498 against Kmart for $19,635,003. Mr. Conway's
claim sought recovery of amounts due under his 2000 Employment
Agreement. The Claim also credits all amounts paid to Mr. Conaway
under his March 11, 2002 Separation Agreement, in accordance with
the Court's order authorizing payment of severance benefits.
The amount of Mr. Conaway's allowable compensation is $3,025,000
for wages plus $5,500 for the value of benefits, William J.
Barrett, Esq., at Barack Ferrazzano Kirschbaum Perlman & Nagelberg
LLP, in Chicago, Illinois, told the Court.
Because Mr. Conaway has alleged no amounts that were actually due
and owing on the Petition Date without acceleration, the amount
subject to Section 502(b)(7)(B) of the Bankruptcy Code inclusion
is zero, Mr. Barrett said.
Mr. Barrett asserted that because Mr. Conaway's receipt of
$4,039,708 not only resulted in his receiving a full distribution
on his Proof of Claim but also caused him to be overcompensated,
the Proof of Claim should be disallowed in full, and Mr. Conaway
should be required to disgorge the overage.
To the extent the Proof of Claim is not disallowed, Mr. Barrett
maintained that Mr. Conaway's inequitable conduct toward creditors
requires that any remaining claims for compensation be equitably
subordinated.
"To allow further claims for excessive compensation by an
executive who deliberately misled the very creditors whose
recoveries his claims would dilute, offends the most fundamental
notions of equity upon which the Bankruptcy Code is predicated,"
Mr. Barrett emphasized.
Headquartered in Troy, Michigan, Kmart Corporation nka KMART
Holding Corporation -- http://www.bluelight.com/-- operates
approximately 2,114 stores, primarily under the Big Kmart or Kmart
Supercenter format, in all 50 United States, Puerto Rico, the U.S.
Virgin Islands and Guam. The Company filed for chapter 11
protection on January 22, 2002 (Bankr. N.D. Ill. Case No.
02-02474). Kmart emerged from chapter 11 protection on May 6,
2003. John Wm. "Jack" Butler, Jr., Esq., at Skadden, Arps, Slate,
Meagher & Flom, LLP, represented the retailer in its restructuring
efforts. The Company's balance sheet showed $16,287,000,000 in
assets and $10,348,000,000 in debts when it sought chapter 11
protection. Kmart bought Sears, Roebuck & Co., for $11 billion to
create the third-largest U.S. retailer, behind Wal-Mart and
Target, and generate $55 billion in annual revenues. The waiting
period under the Hart-Scott-Rodino Antitrust Improvements Act
expired on Jan. 27, without complaint by the Department of
Justice. (Kmart Bankruptcy News, Issue No. 117; Bankruptcy
Creditors' Service Inc. http://bankrupt.com/newsstand/or
215/945-7000)
KMART CORP: GPS Says It Has No Duty to Produce Multiple Doc Forms
-----------------------------------------------------------------
Global Property Services, Inc., asks the U.S. Bankruptcy Court for
the Northern District of Illinois to deny Kmart Corporation's
request to compel GPS to produce electronic documents in native,
electronic format.
David A. Newby, Esq., at Johnson & Newby, LLC, in Chicago,
Illinois, relates that GPS provided Kmart with unfettered access
to its working accounting database. Kmart could review,
manipulate, and print financial reports directly from GPS'
accounting database. Counsel for GPS subsequently labeled and
produced approximately 6,100 pages of documents -- the Peachtree
Documents -- that Kmart generated from its review.
Mr. Newby argues that the fact that Kmart's expert wishes to
manipulate the information does not give rise to a heightened
duty on the part of GPS to produce the information in multiple,
alternative formats.
Moreover, Mr. Newby asserts that Kmart fails to provide the Court
with authority to support its request.
As reported in the Troubled Company Reporter on Sept. 15, 2006,
Kmart asked the Court to compel GPS to produce the responsive
information maintained in GPS' accounting database in its native,
electronic format.
GPS provided landscaping, parking lot sweeping, and snow removal
services for Kmart Corporation before Kmart filed for bankruptcy.
GPS had individual written standard form contracts with 230
individual Kmart stores.
George R. Mesires, Esq., at Barack Ferrazzano Kirschbaum Perlman
& Nagelberg LLP, in Chicago, Illinois, told the Court that GPS
continues to defy the rules governing the production of documents.
Mr. Mesires recounted that GPS initially refused to produce the
financial documents that purportedly support GPS' $20,000,000
claim until Kmart filed a request to compel. Now, GPS refuses to
produce the documents in their native, electronic format, Mr.
Mesires said.
Following Kmart's review of GPS' financial data, Kmart designated
numerous reports and data sets for copying. GPS, however,
refused to copy the documents as it had presented for inspection,
and stripped the financial data from its native, software
environment. GPS printed hard copies, which differ vastly from
how the financial data is maintained, Mr. Mesires complained.
The law does not allow GPS to transform a dynamic, electronic
database into plain pieces of paper, Mr. Mesires argued.
The Troubled Company Reporter on Apr. 4, 2006, notes that GPS
filed two claims against Kmart for $20,000,000 asserting:
(1) breach of contract,
(2) promissory estoppel,
(3) unjust enrichment,
(4) defamation,
(5) misappropriation of trade secrets, and
(6) tortious interference with contracts, business
relationships and business expectancies.
Kmart asked GPS to produce financial information and other
documents supporting its claim.
GPS said it has not denied Kmart any discovery. However,
GPS considered Kmart's arguments for the production of financial
information and agreed to produce the requested information.
Headquartered in Troy, Michigan, Kmart Corporation nka KMART
Holding Corporation -- http://www.bluelight.com/-- operates
approximately 2,114 stores, primarily under the Big Kmart or Kmart
Supercenter format, in all 50 United States, Puerto Rico, the U.S.
Virgin Islands and Guam. The Company filed for chapter 11
protection on January 22, 2002 (Bankr. N.D. Ill. Case No.
02-02474). Kmart emerged from chapter 11 protection on May 6,
2003. John Wm. "Jack" Butler, Jr., Esq., at Skadden, Arps, Slate,
Meagher & Flom, LLP, represented the retailer in its restructuring
efforts. The Company's balance sheet showed $16,287,000,000 in
assets and $10,348,000,000 in debts when it sought chapter 11
protection. Kmart bought Sears, Roebuck & Co., for $11 billion to
create the third-largest U.S. retailer, behind Wal-Mart and
Target, and generate $55 billion in annual revenues. The waiting
period under the Hart-Scott-Rodino Antitrust Improvements Act
expired on Jan. 27, without complaint by the Department of
Justice. (Kmart Bankruptcy News, Issue No. 117; Bankruptcy
Creditors' Service Inc. http://bankrupt.com/newsstand/or
215/945-7000)
KMART CORP: Recaps Summary Judgment Request on Eagle's $329K Claim
------------------------------------------------------------------
Kmart Corporation reiterates its request filed with the U.S.
Bankruptcy Court for the Northern District of Illinois seeking
summary judgment disallowing the claim filed by Eagle Janitorial
Services, Inc., for services performed in California and any
claims for interest.
George R. Mesires, Esq., at Barack Ferrazzano Kirschbaum Perlman
& Nagelberg LLP, in Chicago, Illinois, relates that despite the
Court granting Eagle leave to file an amended response to the
summary judgment request, Eagle again failed to identify the
basis for its claim for interest. Thus, Eagle fails to defeat
Kmart's summary judgment request with respect to the claim for
interest.
Mr. Mesires points out that instead of marshaling any evidence of
the existence of an "open book account" in its business with
Kmart, Eagle argues that Kmart has failed to sustain its burden
for judgment in its favor on the request.
Mr. Mesires argues that Eagle's arguments are red-herrings and
should not distract the Court from Eagle's own repeated failure
to demonstrate that facts exist to defeat Kmart's request.
As reported in the Troubled Company Reporter on Sept. 13, 2006,
for reasons stated in open court, the Honorable Susan Pierson
Sonderby denied without prejudice Kmart's request to stay
discovery relating to Eagle's invoices and claims against the
Debtor's stores in California.
The Troubled Company Reporter on Aug. 24, 2006 relates that
Kmart sought summary judgment from the Court to disallow:
(i) Eagle Janitorial's claim for services performed in
California; and
(ii) any claim for interest, other charges, or not otherwise
supported with documentation.
On July 29, 2002, Eagle Janitorial filed Claim No. 36815 asserting
$329,452 for janitorial services provided to Kmart stores located
in four states.
The Claim is based on 201 invoices, of which 193 are for services
provided to Kmart stores in California. The invoices show
charges totaling $214,075, which is $115,377 less than the face
amount of Claim No. 36815.
Of the Total Invoice Amount, $201,860 is for services rendered to
Kmart stores in California.
Kmart objected to Eagle's claim asserting that the claim lacked
sufficient documentation based on Kmart's books and records.
In response, Eagle contended that its entire claim is valid
based on California's limitation of action statutes and applicable
California case law, which provide that Eagle's entire Claim is
subject to a four-year statute of limitation that begins
to run on the last date of service or payment by Kmart of the
account.
Eagle also contended that it was unable to state what Kmart's
records might show because Kmart has refused to respond
to Eagle's discovery requests and that the non-existence of
documents in Kmart's books and records is far from
conclusive that Kmart is not liable for Eagle's Claim.
Headquartered in Troy, Michigan, Kmart Corporation nka KMART
Holding Corporation -- http://www.bluelight.com/-- operates
approximately 2,114 stores, primarily under the Big Kmart or Kmart
Supercenter format, in all 50 United States, Puerto Rico, the U.S.
Virgin Islands and Guam. The Company filed for chapter 11
protection on January 22, 2002 (Bankr. N.D. Ill. Case No.
02-02474). Kmart emerged from chapter 11 protection on May 6,
2003. John Wm. "Jack" Butler, Jr., Esq., at Skadden, Arps, Slate,
Meagher & Flom, LLP, represented the retailer in its restructuring
efforts. The Company's balance sheet showed $16,287,000,000 in
assets and $10,348,000,000 in debts when it sought chapter 11
protection. Kmart bought Sears, Roebuck & Co., for $11 billion to
create the third-largest U.S. retailer, behind Wal-Mart and
Target, and generate $55 billion in annual revenues. The waiting
period under the Hart-Scott-Rodino Antitrust Improvements Act
expired on Jan. 27, without complaint by the Department of
Justice. (Kmart Bankruptcy News, Issue No. 117; Bankruptcy
Creditors' Service Inc. http://bankrupt.com/newsstand/or
215/945-7000)
LE GOURMET: Taps Minken & Associates for Tax Advisory Services
--------------------------------------------------------------
Le Gourmet Chef, Inc., asks the U.S. Bankruptcy Court for the
District of New Jersey for permission to employ Minken &
Associates, P.C., as its tax advisors.
The Debtor anticipates that Minken will provide tax compliance and
advisory services, including, but not limited to:
a) preparation of the Jan. 29, 2006, federal and
state income tax returns;
b) preparation of the Jan. 28, 2007, federal and
state income tax returns; and
c) assistance with tax inquiries and tax issues on
an ongoing basis.
Steven Minken tells the Court that his firm charges:
-- $21,500, on a fixed fee basis, for income tax return
preparation services; and
-- $150 to $225 an hour for tax advisory services.
Mr. Minken assures the Court that his firm does not hold any
interests adverse to the Debtor, and is a "disinterested person"
as that term is defined in Sec. 101(14) of the Bankruptcy Code.
Headquartered in Shrewsbury, New Jersey, Le Gourmet Chef, Inc.,
-- http://www.legourmetchef.com/-- is a retailer specializing in
solutions for entertaining and gift giving. The Company filed for
bankruptcy on Aug. 8, 2006 (Bankr. D. N.J. Case No. 06-17364).
John DiIorio, Esq., at Shapiro & Croland, and Wendy G. Marcari,
Esq., at Dreier LLP represent the Debtor. John K. Sherwood, Esq.,
and Kenneth Rosen, Esq., at Lowenstein Sandler, represents the
Official Committee of Unsecured Creditors. When the Debtor filed
for bankruptcy, the Debtor estimated its assets and debts at
$10 million to $50 million.
LE GOURMET: Committee Gets Court Okay to Retain Traxi as Advisors
-----------------------------------------------------------------
The Official Committee of Unsecured Creditors of Le Gourmet Chef,
Inc., obtained authority from the U.S. Bankruptcy Court for the
District of New Jersey to retain Traxi, LLC, as its financial
Advisors, effective Aug. 16, 2006.
As reported in the Troubled Company Reporter on Sept. 5, 2006,
Traxi is expected to:
(a) review all financial information prepared by the Debtor or
its consultants as requested by the Creditors Commitee
including a review of the Debtor's financial statements as
of the Debtor's filing for chapter protection, showing in
detail all assets and lisbilities and priority and secured
creditors;
(b) monitor the Debtor's activities regarding cash
expenditures, receivable collections, asset sales and
projected cash requirements;
(c) attend required meetings with the Creditors Committee, the
Debtor, creditors, their attorneys and consultants, federal
and state authorities;
(d) review Debtor's periodic operating and cash flow
statements;
(e) review Debtor's books and records for related party
transactions, potential preferences, fraudulent conveyances
and other potential investigations, prior to the Debtor's
filing for chapter 11 protection;
(f) undertake investigation with respect to the acts, conduct,
property, liabilities and financial condition of the
Debtor, its management, creditors including the operation
of its businesses, and avoidance actions, prior to the
Debtor's filing for chapter 11 protection;
(g) review any business plan prepared by the Debtor or their
consultants;
(h) review and analyze proposed transactions for which the
Debtor seeks Court approval;
(i) assist in any sale process of the Debtor collectively or in
segments, parts or other delineations;
(j) assist the Creditors Committee in developing, evaluating,
structuring and negotiating the terms and conditions of all
potential plans of liquidation;
(k) provide expert testimony on the results of its findings;
(l) analyze potential divestitures of the Debtor's operations;
(m) assist the Creditors Committee in developing alternative
plans including contacting potential plan sponsors; and
(n) provide the Creditors Committee with other and further
financial advisory with respect to the Debtor, including
valuation, and advice with respect to financial, business
and economic issues, as may arise during the course of the
restructuring as requested by the Creditors Committee.
Perry M. Mandarino, a Senior Managing Director and Unit Holder at
Traxi, told the Court that the Firm will bill:
Professionals Hourly Rate
------------- -----------
Partners/managing Directors $450 to $525
Managers/Directors $275 to $425
Associates/Analyst $125 to $275
Mr. Mandarino assured the Court that his Firm is a "disinterested
person" as the term is defined in Section 101(14) of the U.S.
Bankruptcy Code.
Headquartered in Shrewsbury, New Jersey, Le Gourmet Chef, Inc.,
-- http://www.legourmetchef.com/-- is a retailer specializing in
solutions for entertaining and gift giving. The Company filed for
bankruptcy on Aug. 8, 2006 (Bankr. D. N.J. Case No. 06-17364).
John DiIorio, Esq., at Shapiro & Croland, and Wendy G. Marcari,
Esq., at Dreier LLP represent the Debtor. John K. Sherwood, Esq.,
and Kenneth Rosen, Esq., at Lowenstein Sandler, represents the
Official Committee of Unsecured Creditors. When the Debtor filed
for bankruptcy, the Debtor estimated its assets and debts at
$10 million to $50 million.
LEATHERLAND CORP: U.S. Trustee Holds Sec. 341(a) Meeting Tomorrow
-----------------------------------------------------------------
The U.S. Trustee for Region 9 will convene a meeting of
Leatherland Corp.'s creditors at 1:30 p.m. tomorrow, Oct. 6, 2006,
at the Ohio Building in Toledo, Ohio.
All creditors are invited, but not required, to attend. This
Meeting of Creditors offers the one opportunity in a bankruptcy
proceeding for creditors to question a responsible officer of the
Debtor under oath about the company's financial affairs and
operations that would be of interest to the general body of
creditors.
The Hon. Mary Ann Whipple of the U.S. Bankruptcy Court for the
Northern District of Ohio, Western Division, converted the
Debtor's Chapter 11 case to a Chapter 7 liquidation proceeding on
July 18, 2006. Ericka S. Parker, Esq., serves as Chapter 7
Trustee for the Debtor's estate. The Chapter 7 Trustee can be
reached at:
Ericka S. Parker, Esq.
Law Office of Ericka S. Parker LLC
1709 Spielbusch Ave., Suite 100
Toledo, OH 43604
Phone:(419) 243-0900
Leatherland Corp., is in the business of retail store of leather
goods. The Company filed for chapter 11 protection on Feb. 25,
2003 (Bankr. N.D. Oh. Case No. 03-31195). Patricia B. Fugee,
Esq., at Roetzel & Andress represents the Debtor in its
restructuring efforts. When the Company filed for protection from
its creditors, it listed $18,525,306 in total assets and
$12,606,482 in total debts.
LEATHERLAND CORP: Ch. 7 Trustee Hires George Lang as Accountant
---------------------------------------------------------------
The U.S. Bankruptcy Court for the Northern District of Ohio,
Western Division, authorized Ericka S. Parker, the Chapter 7
Trustee overseeing the bankruptcy estate of Leatherland Corp., to
retain George Lang & Associates as her public accountant.
George Lang will assist the Trustee in preparing and filing tax
returns for the Debtor's estate.
The hourly rates for George Lang's professionals are:
Professional Hourly Rate
------------ -----------
George F. Lang $135
Amy Kelly, CPA $95
Janis Chamberlin $85
Susan K. Lang $75
Susan Beaver $45
Mr. Lang assures the Court that his firm holds no connection to
other parties that will render the firm's employment in this case
improper. Mr. Lang can be reached at:
George F. Lang
George Lang & Associates
6910 Airport Highway
P.O. Box 505,
Holland, OH 43528
Leatherland Corp., is in the business of retail store of leather
goods. The Company filed for chapter 11 protection on Feb. 25,
2003 (Bankr. N.D. Oh. Case No. 03-31195). Patricia B. Fugee,
Esq., at Roetzel & Andress represents the Debtor in its
restructuring efforts. When the Company filed for protection from
its creditors, it listed $18,525,306 in total assets and
$12,606,482 in total debts.
LIFEPOINT HOSPITALS: Moody's Assigns Loss-Given-Default Rating
--------------------------------------------------------------
In connection with Moody's Investors Service's implementation of
its new Probability-of-Default and Loss-Given-Default rating
methodology for the U.S. Hospital and Long-term Care sectors this
week, the rating agency confirmed its Ba3 Corporate Family Rating
for LifePoint Hospitals, Inc.
Additionally, Moody's revised or held its probability-of-default
ratings and assigned loss-given-default ratings on these loans and
bond debt obligations:
Projected
Old POD New POD LGD Loss-Given
Debt Issue Rating Rating Rating Default
---------- ------- ------- ------ ----------
$300 Million
Senior Secured
Revolving Credit
Facility due 2010 Ba3 Ba3 LGD3 45%
Senior Secured
Term Loan B
due 2012 Ba3 Ba3 LGD3 45%
3.25% Convertible
Senior Subordinated
Notes due 2025 B2 B2 LGD6 94%
Moody's explains that current long-term credit ratings are
opinions about expected credit loss, which incorporate both the
likelihood of default and the expected loss in the event of
default. The LGD rating methodology will disaggregate these two
key assessments in long-term ratings. The LGD rating methodology
will also enhance the consistency in Moody's notching practices
across industries and will improve the transparency and accuracy
of Moody's ratings as Moody's research has shown that credit
losses on bank loans have tended to be lower than those for
similarly rated bonds.
Probability-of-default ratings are assigned only to issuers, not
specific debt instruments, and use the standard Moody's alpha-
umeric scale. They express Moody's opinion of the likelihood that
any entity within a corporate family will default on any of its
debt obligations.
Loss-given-default assessments are assigned to individual rated
debt issues -- loans, bonds, and preferred stock. Moody's opinion
of expected loss are expressed as a percent of principal and
accrued interest at the resolution of the default, with
assessments ranging from LGD1 (loss anticipated to be 0% to 9%) to
LGD6 (loss anticipated to be 90% to 100%).
Headquartered in Brentwood, Tennessee, LifePoint operates 49
hospitals in non-urban communities in 20 states.
MAVERICK TUBE: Moody's Assigns Loss-Given-Default Rating
--------------------------------------------------------
In connection with Moody's Investors Service's implementation of
its new Probability-of-Default and Loss-Given-Default rating
methodology for the oilfield service and refining and marketing
sectors last week, the rating agency confirmed its Ba3 Corporate
Family Rating for Maverick Tube Corporation.
Moody's also revised its rating on the company's 1.875% Senior
Subordinate Convertible Notes Due 2025 to B1 from B2, and assigned
those debentures an LGD5 rating suggesting noteholders will
experience a 73% loss in the event of a default.
Moody's explains that current long-term credit ratings are
opinions about expected credit loss which incorporate both the
likelihood of default and the expected loss in the event of
default. The LGD rating methodology will disaggregate these two
key assessments in long-term ratings. The LGD rating methodology
will also enhance the consistency in Moody's notching practices
across industries and will improve the transparency and accuracy
of Moody's ratings as Moody's research has shown that credit
losses on bank loans have tended to be lower than those for
similarly rated bonds.
Probability-of-default ratings are assigned only to issuers, not
specific debt instruments, and use the standard Moody's alpha-
numeric scale. They express Moody's opinion of the likelihood
that any entity within a corporate family will default on any of
its debt obligations.
Loss-given-default assessments are assigned to individual rated
debt issues -- loans, bonds, and preferred stock. Moody's opinion
of expected loss are expressed as a percent of principal and
accrued interest at the resolution of the default, with
assessments ranging from LGD1 (loss anticipated to be 0% to 9%) to
LGD6 (loss anticipated to be 90% to 100%).
Headquartered in Chesterfield, Missouri, Maverick Tube Corp. --
http://www.maverick-tube.com/-- engages in the production and
sale of welded tubular steel products, which are primarily used in
the oil and natural gas industry, as well as in other electrical
applications.
MEDCATH HOLDINGS: Moody's Assigns Loss-Given-Default Rating
-----------------------------------------------------------
In connection with Moody's Investors Service's implementation of
its new Probability-of-Default and Loss-Given-Default rating
methodology for the U.S. Hospital and Long-term Care sectors this
week, the rating agency confirmed its B2 Corporate Family Rating
for MedCath Holdings Corp.
Additionally, Moody's revised or held its probability-of-default
ratings and assigned loss-given-default ratings on these loans and
bond debt obligations:
Projected
Old POD New POD LGD Loss-Given
Debt Issue Rating Rating Rating Default
---------- ------- ------- ------ ----------
Senior Secured
Revolving Credit
Facility due 2009 B2 B2 LGD3 44%
Senior Secured
Term Loan
due 2010 B2 B2 LGD3 44%
9.875% Senior
Unsecured Notes
due 2025 Caa1 Caa1 LGD5 81%
Moody's explains that current long-term credit ratings are
opinions about expected credit loss, which incorporate both the
likelihood of default and the expected loss in the event of
default. The LGD rating methodology will disaggregate these two
key assessments in long-term ratings. The LGD rating methodology
will also enhance the consistency in Moody's notching practices
across industries and will improve the transparency and accuracy
of Moody's ratings as Moody's research has shown that credit
losses on bank loans have tended to be lower than those for
similarly rated bonds.
Probability-of-default ratings are assigned only to issuers, not
specific debt instruments, and use the standard Moody's alpha-
umeric scale. They express Moody's opinion of the likelihood that
any entity within a corporate family will default on any of its
debt obligations.
Loss-given-default assessments are assigned to individual rated
debt issues -- loans, bonds, and preferred stock. Moody's opinion
of expected loss are expressed as a percent of principal and
accrued interest at the resolution of the default, with
assessments ranging from LGD1 (loss anticipated to be 0% to 9%) to
LGD6 (loss anticipated to be 90% to 100%).
MedCath Holdings operates primarily specialty cardiovascular care
hospitals.
MESABA AVIATION: Committee Wants to Commence Actions Against MAIR
-----------------------------------------------------------------
The Official Committee of Unsecured Creditors in Mesaba Aviation
Inc.'s chapter 11 proceedings sought and obtained approval from
the U.S. Bankruptcy Court for the District of Minnesota to
investigate and analyze MAIR Holding, Inc.'s relationship and
transactions with the Debtor.
The Committee wants to pursue discovery of the Debtor's
relationship with its direct parent company to determine if the
Debtor's estate has any potential causes of action against MAIR or
any other parties to recover or avoid prepetition transactions.
Specifically, the Creditors Committee obtained permission to take
discovery of MAIR to the full extent permitted by Rule 2004 of
the Federal Rules of Bankruptcy Procedure, Thomas J. Lallier,
Esq., at Foley & Mansfield, P.L.L.P, in Minneapolis, Minnesota,
recounts.
The Court directed MAIR to provide requested documents to the
Creditors Committee, and make available for deposition certain of
it officials and employees. The Rule 2004 Order established a
timeline for MAIR's production of documents and officials and
employees, and as of August 24, 2006, the Creditors Committee was
in the process of taking discovery in accordance with established
procedures.
Before the Petition Date, the Debtor engaged in transactions with
MAIR involving significant transfers of funds to MAIR.
Stipulation on Claim Prosecution
Since the Petition Date, the Creditors Committee and the Debtor
have engaged in good faith discussions regarding the
investigation and prosecution of any potential causes of action
the estate may have against the Debtor's insiders, including
MAIR. The Debtor and the Committee agree that the investigation
and prosecution of any claims should be done by the Committee.
Accordingly, the Debtor and the Creditors Committee stipulate
that:
(a) The Committee will have exclusive standing and authority
to investigate, analyze, pursue, settle or otherwise
resolve any and all causes of action, including
subordination claims the Debtor's estate may have against
MAIR, its officers, directors, employees, affiliates, or
agents and representatives, whether the causes of action
arise under the Bankruptcy Code or non-bankruptcy law;
(b) The Committee will be fully authorized and empowered to
take all actions necessary to investigate, analyze,
prosecute, settle or otherwise resolve the Insider Claims
in the Committee's sole discretion, including:
(1) conducting discovery related to the Insider Claims;
(2) determining whether to bring or file any lawsuit or
pleading of any kind relating to the Insider Claims;
(3) preparing and filing any motion, complaint, or other
pleading to pursue the Insider Claims; and
(4) resolving any Insider Claims through litigation or
settlement, subject to the Debtor's right to be heard
and Bankruptcy Court approval; and
(c) The Committee's standing and authorization to
investigate, analyze, pursue, settle or otherwise resolve
the Insider Claims will be preserved and confirmed under
Section 1123(b)(3) of the Bankruptcy Code in any plan
filed under Section 1121 of the Bankruptcy Code.
Stipulation Must be Approved
The parties believe that the Creditors Committee, having
investigated the existence of any potential claims against MAIR,
is best suited to commence and prosecute the Insider Claims.
Moreover, while the Debtor's counsel has acted in the utmost good
faith throughout the Debtor's Chapter 11 case, there are inherent
conflicts of interest in the prosecution of claims against the
Debtor's corporate parent by the Debtor. Prosecution of the
claims by the Creditors Committee will resolve any potential or
actual conflicts, Mr. Lallier explains.
The Creditors Committee, hence, asks the Court to approve its
stipulation with the Debtor in its entirety.
Mr. Lallier notes that the Creditors Committee has a significant
interest in the commencement and prosecution of the claims
against MAIR because the potential claims to be prosecuted, if
successful, will result in recoveries that will inure primarily
to the benefit of the unsecured creditors, as there are few
secured claims against the Debtor's estate.
Unless a response is filed and delivered no later than
September 7, 2006, or served and filed by mail not later than
September 1, the Court may grant the Creditors Committee's
request without a hearing.
MAIR Objects
MAIR Holdings wants the Court to compel the Committee to present
adequate evidence in support of the Committee's request to enter
into a stipulation with the Debtor.
The Creditors Committee should be required to establish an
appropriate factual record upon which the request can be granted,
Kenric D. Kattner, Esq., at Haynes and Boone, LLP, in Houston,
Texas, asserts.
Mr. Kattner notes that the Creditors Committee should present its
evidence without resorting to "in camera" discussion.
"Other than vague references to the desire to protect 'attorney
client work product,' the Creditors Committee has not stated any
basis to close the proceedings related to this contested matter,"
Mr. Kattner explains.
MAIR reserves all its rights regarding the request, including the
right to examine witnesses at the hearing.
Committee Talks Back
However, Mr. Lallier argues that MAIR has no reasonable basis
to suggest that it needs additional facts to assess the
stipulation between the Debtors and the Creditors Committee.
"Notably absent from MAIR's response is any substantive objection
to the requested relief," Mr. Lallier says. "MAIR's objection
cites absolutely no authority -- either legal or factual -- that
the request is improper."
In addition, Mr. Lallier continues, there are no factual issues
raised in the request or MAIR's objection that need to be
addressed through live testimony.
The Creditors Committee notes that it is merely seeking the
Court's "imprimatur" that it be authorized, with the Debtor's
consent, to prosecute claims held by the estate.
Mr. Lallier points out that the standard for allowing the
Creditors Committee to prosecute claims is a weighing by the
Court of four factors:
(1) whether the defendants were insiders of the debtor;
(2) whether the debtor was fully aware of the committee's
intent to file the actions;
(3) whether time was of the essence in filing the complaints;
and
(4) whether there was any likelihood of confusion as to which
party would pursue the claims.
None of the four factors requires testimony or the development of
any additional factual record, Mr. Lallier contends. He further
submits that there can be no reasonable dispute concerning the
application of the standard because:
(a) MAIR is an insider of the Debtor under Sections 101(2)
and (31) of the Bankruptcy Code as a matter of law. The
existing record in the Debtor's bankruptcy case is more
than sufficient to establish MAIR's relation to the
Debtor;
(b) There is no reason to delay prosecuting claims for the
recovery of assets on behalf of the Debtor's estate; and
(c) The stipulation sets forth the Debtor's express written
agreement that the Creditors Committee will prosecute the
claims.
Mr. Lallier informs the Court that not a single party-in-interest
has opposed the request other than MAIR, the entity against which
claims would be asserted. Even assuming that MAIR has proper
standing to object to the request, it certainly does not have any
credible or legally cognizable reason to try to dictate the party
that prosecutes the claims against it, Mr. Lallier says.
About Mesaba Aviation
Headquartered in Eagan, Minnesota, Mesaba Aviation, Inc., dba
Mesaba Airlines -- http://www.mesaba.com/-- operates as a
Northwest Airlink affiliate under code-sharing agreements with
Northwest Airlines. The Company filed for chapter 11 protection
on Oct. 13, 2005 (Bankr. D. Minn. Case No. 05-39258). Michael L.
Meyer, Esq., at Ravich Meyer Kirkman McGrath & Nauman PA,
represents the Debtor in its restructuring efforts. Craig D.
Hansen, Esq., at Squire Sanders & Dempsey, L.L.P., represents the
Official Committee of Unsecured Creditors. When the Debtor filed
for protection from its creditors, it listed total assets of
$108,540,000 and total debts of $87,000,000. (Mesaba Bankruptcy
News, Issue No. 23 and 24; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)
MICHAEL MORLEY: Case Summary & 10 Largest Unsecured Creditors
-------------------------------------------------------------
Debtor: Michael A. Morley
Sharon M. Morley
1155 Brunes Boulevard
Brownsburg, IN 46112
Bankruptcy Case No.: 06-06085
Chapter 11 Petition Date: October 4, 2006
Court: Southern District of Indiana (Indianapolis)
Debtors' Counsel: Edward B. Hopper, II, Esq.
Stewart & Irwin, P.C.
251 East Ohio Street, Suite 1100
Indianapolis, IN 46204
Tel: (317) 639-5454
Fax: (317) 632-1319
Estimated Assets: Less than $1,000
Estimated Debts: $1 Million to $100 Million
Debtors' 10 Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
------ --------------- ------------
Internal Revenue Service Taxes $900,000
P.O. Box 21126
Philadelphia, PA 19114
Fifth Third Bank Loan $725,000
P.O. Box 630041
Cincinnati, OH 45263
Credit Card $25,070
Indiana Department of Revenue Last Quarter Taxes $85,000
100 North Senate Avenue
Room N203 Bankruptcy
Indianapolis, IN 46204
Indiana Department of Taxes $35,000
Workforce Development
10 North Senate Avenue
Southeast 105 Legal Support
Indianapolis, IN 46204-2277
Chase Credit Card $29,340
800 Brooksedge Boulevard
Westerville, OH 43081
MBNA America Credit Card $21,655
Chi Bank Credit Card $20,995
Mark Matkovic Accounting Fees $13,000
Target Credit Card $3,000
American Express Credit Card $2,870
MONTGOMERY WARD: $2.4 Mil. Payments to OTC Were Not Preferential
----------------------------------------------------------------
Montgomery Ward, LLC, sued OTC International, Ltd., to recover
payments made to the jewelry wholesaler within the 90-day period
prior to Montgomery Ward's bankruptcy filing (Bankr. D. Del. Adv.
Pro. No. 02-9282). During the 90-day preference period,
Montgomery Ward issued 13 checks totaling $2,395,936.40 to OTC.
OTC argued that all of the payments were made in the ordinary
course of business and were not subject to recapture by the
Debtor. Montgomery Ward responded that a reduction in payment
terms from 60 days to 30 days just prior to the preference period
prevents the payments from being ordinary.
In a decision published at 2006 WL 2642116, the Honorable Raymond
T. Lyons agrees with OTC, and gives three reasons for his
decision:
(1) Montgomery Ward continued its practice of weekly payments
of vendor invoices by the due date;
(2) the change in terms was ordinary between the parties; and
(3) OSI continued to ship without reservation and never
engaged in any collection activity.
Montgomery Ward operated hundreds of retail department stores
throughout the nation for more than a century. On July 7, 1997,
it filed a petition under chapter 11 of the Bankruptcy Code in the
U.S. Bankruptcy Court for the District of Delaware. A plan of
reorganization was confirmed on July 25, 1999, and Montgomery Ward
emerged as a wholly-owned subsidiary of GE Capital Corp. Its
business plan called for increased sales and a store-remodeling
program to attract the modern consumer. Financing was arranged
through loans from major banks as well as equity, debt and credit
enhancements by GE Capital. The reorganization did not meet GE
Capital's expectations. Following its second disappointing
Christmas season after reorganization, Montgomery Ward filed for
bankruptcy a second time on December 28, 2000 (Bankr.D. Del. Case
No. 00-4667). The Debtor immediately announced its plan to
liquidate and set out to do just that. A plan of liquidation
proposed by the Creditors Committee was confirmed on August 6,
2002. A Plan Administrator, John L. Palmer, now controls the
Debtor and has nearly completed his work.
MORGAN STANLEY: S&P Affirms $3 Million Class A-3 Notes' B+ Rating
-----------------------------------------------------------------
Standard & Poor's Ratings Services affirmed its 'B+' rating on
Morgan Stanley ACES SPC's $3 million class A-3 secured fixed-rate
notes from series 2006-8 and removed it from CreditWatch, where it
was placed with negative implications Aug. 29, 2006.
The rating action reflects the Sept. 21, 2006, affirmation of the
rating on the underlying securities for class A-3, the $1 billion
8% senior notes issued by Cablevision Systems Corp., and its
removal from CreditWatch negative.
Morgan Stanley ACES SPC's $46 million secured fixed-rate notes
series 2006-8 is a swap-independent synthetic transaction is weak-
linked to the reference obligations on the underlying collateral
for each class.
MOTIVNATION INC: June 30 Balance Sheet Upside-Down by $862,704
--------------------------------------------------------------
Motivnation Inc.'s balance sheet at June 30, 2006, showed total
assets of $1,952,966 and total liabilities of $2,815,670,
resulting in a stockholders' deficit of $862,704.
The company's balance sheet at June 30, 2006, also showed negative
working capital with $1,316,865 in total current assets and
$853,193 in total current liabilities.
Net loss for the three months ended June 30, 2006, increased to
$324,014 from a $153,137 net loss for the three months ended
June 30, 2005, while total net sales for the current quarter
decreased to $536,695 from total net sales of $1,286,119 for the
same period last year.
Full-text copies of the company's financial statements for the
quarter ended June 30, 2006, are available for free at:
http://researcharchives.com/t/s?12e4
Headquartered in Irvine, California, MotivNation Inc.
http://www.motivnation.com/-- engages in customizing motorcycles
and automobiles for individuals and provides custom parts and
accessories for independent dealers and manufacturers.
NANOVATION TECH: Letter Was Insufficient to Trigger D&O Coverage
----------------------------------------------------------------
The Hon. Pamela S. Hollis of the U.S. Bankruptcy Court for the
Northern District of Illinois denied a motion for summary
judgments brought by Barry Chatz, the appointed Chapter 7 Trustee
of the estates of Nanovation Technologies, Inc., and Nanovation
Technologies of Michigan, Inc., against National Union Fire
Insurance Company of Pittsburgh, Penn., Federal Insurance Company,
and Twin City Fire and Insurance Company.
The Court found that the Debtor's prepetition letter, which
informed the insurance broker of the Debtor's plan to file for
bankruptcy, was an insufficient "notice of circumstances" to
trigger coverage under the Debtor's "claims-made" Directors and
Officers liability insurance policies.
Instead, Judge Hollis granted the requests of the three insurance
companies summary judgment in the Trustee's lawsuit against them.
Background
On May 7, 2002, Mr. Chatz filed a lawsuit against certain of
Nanovation's directors and officers. The Defendants in the D & O
Complaint are:
-- former directors: Stephen Barney, James Davidson, Joseph
Carr, David Grubb and Daniel Dorman;
-- former officers and directors: George Robert Tatum (and a
related limited partnership), Robert Chaney, John Kenning,
Gary Bjorklund and Robert Bratter;
-- former officers: Seth Joseph (and two related limited
partnerships) and Mclba Gitten; and
-- former general counsel: Howard Gitten.
After filing for the D & O Complaint, Mr. Chatz also filed an
adversary complaint (N.D. Ill. Civil Action No. 02-01680) against
the three insurance companies that issued Debtor-corporation's
Directors and Officers liability insurance policies, seeking a
declaration that the policies were assets of the bankruptcy estate
and that coverage existed under the policies.
The Insurance Policies
The Debtor had three separate D & O liability insurance policies:
* First, the primary policy, which was issued by National
Union, a subsidiary of American International Group, Inc.,
with an original policy period of Oct. 8, 2000 to Oct. 8,
2001, and a $5 million limit. The policy was delivered to
the Debtor's office in Florida. Vice president of Finance
and Treasurer John Ofenloch, who worked with the Debtor's
insurance broker Marsh & McClennan in obtaining quotes for
the D & O insurance and other type of insurance on the
Debtor's assets, negotiated the policies. National Union
extended the term of the Primary Policy six months so that
the policy remained in effect from Oct. 8, 2000, to
April 8, 2002.
* Second, the First Layer Excess Policy, which was issued by
Federal Insurance, provides $10 million in additional
coverage.
* Third, the $10 million Second Layer Excess Policy issued by
Twin City.
Both Excess Policies had effective dates same with the National
Union's original policy period. In addition, both policies are
commonly known as "following form" policies in insurance industry,
which means that they followed and included the terms and
conditions of the Primary Policy. On the other hand, the Primary
Policy is a claims-made policy, which means it covers only claims
made during the policy period rather than claims arising out of
occurrences during the policy period.
Aside from those policies, the Debtor also had a Technology
Liability Insurance Policy, issued by American International
Specialty Lines Insurance Company, a different member company of
AIG from National Union. The ProTech Policy stated that coverage
would be provided for claims during the policy period.
Furthermore, that policy was an insurance policy covering claims
of wrongful acts in the Debtor's performance of technology
services or failure of technology products.
The Ofenloch Letter
On July 24, 2001, the day before the Debtor filed for bankruptcy,
Messrs. Chaney, Gitten and Ofenloch informed Dennis Love and Jack
Gocke from Marsh & McClennan regarding the Chapter 11 filing. The
Nanovation representatives said that no claims had been made
against Nanovation. Mr. Love pointed out the section of the
Primary Policy would allow the Debtor to put insurers on notice of
circumstances even though no claims had actually been made.
However, Mr. Ofenloch had already written a "notice of
circumstances" letter to Mr. Gocke the day before.
According to the Ofenloch Letter, the insurers were given notice
of potential claims against the Debtor. The letter also stated
that the Debtor believes that its bankruptcy filing will give rise
to claims being filed against the Debtor, its Board of Directors
and Officers. The Debtor would advise the insurers of the
specifics of the claims as the Company becomes aware of them.
After receiving the Ofenloch Letter, Mr. Love composed the cover
letters dated July 25, 2001, that were sent to the three insurers
with the Ofenloch Letter enclosed. Mr. Love requested that each
insurer "accept this as a notice of circumstances that may give
rise to a claim under the Primary Policy as well as any other
policies."
Nanovation officers, directors and attorneys agreed that no claims
had been made against the Debtor. Moreover, neither Mr.
Bjorklund, Mr. Davidson, Mr. Bratter nor Mr. Carr were aware any
wrongful acts committed by other directors and officers on or
before July 23, 2001, when Mr. Ofenloch sent his letter.
Florida Law
The Trustee and other parties asserted that Florida law is
applicable to their summary judgment motions. Under Florida law,
the existence of a coverage defense assumes that coverage exists
but that there is a defense, such as a material misrepresentation
on the application for insurance. Florida law required the
insurers to respond in 30 days. The Trustee adds that the
insurers failed to respond within 30 days even though National
Union responded to the Ofenloch Letter before the Primary Policy
expired.
Insurers Respond
The three insurers argued that the Trustee's motions do not create
coverage defense because there was no existing coverage. The
insurers denied the coverage under a claims-made policy since it
is based on a complete lack of notice; therefore, it is not a
coverage defense.
The insurers asserted that:
-- National Union has responded to the Ofenloch letter in a
reasonable amount of time and did not waive its right to
object to notice;
-- Federal and Twin City had no duty to defend and therefore no
duty to respond until the coverage was triggered;
-- it is not estopped from denying the adequacy of the notice
for the D & O policy because the Trustee failed to show
evidence whether the Debtor was misled by an act or
statement of the insurer;
-- neither the three insurers acted in bad faith with respect
to their responses to the Ofenloch letter.
Court's Decision
In a decision published at 2006 WL 2129500, Judge Hollis held
that:
a) National Union responded timely to the letter and so did not
waive its right to object to that notice;
b) Federal responded to the letter in an appropriate time and
reserved all of its rights to decline coverage;
c) any delay in the response of Twin City, whose duty to defend
has not yet been triggered, did not indicate a lack of good
faith;
d) Under Illinois law, National Union was not estopped from
denying the adequacy of the notice for the D & O policy even
though a separate division of its company had accepted
the letter as notice of circumstances under the Debtor's
technology liability insurance policy;
e) National Union did not act in bad faith under Florida law;
and
f) National Union did not engage in vexatious and unreasonable
delay under Illinois law.
Headquartered in Northville, Michigan, Nanovation Technologies,
Inc. -- http://www.nanovation.com/-- developed and marketed
photonic integrated circuits. The Company filed for chapter 11
protection on July 25, 2001 (Bankr. N.D. Ill. Case No. 01-26090).
On Nov. 20, 2001, the Debtor's case was converted to Chapter 7
Liquidation. Barry Chatz serves as the Chapter 7 Trustee
liquidating the Debtor's estate.
NATURADE INC: June 30 Stockholders' Deficit Widens to $10.8 Mil.
----------------------------------------------------------------
Naturade, Inc., filed its financial statements for the second
quarter ended June 30, 2006, with the Securities and Exchange
Commission on Sept. 25, 2006.
For the three months ended June 30, 2006, the Company reported a
$5,321,467 net loss attributable to common stockholders on
$2,786,622 of net sales, compared with a $505,349 net loss on
$2,761,811 of net sales for the same period in 2005.
At June 30, 2006, the Company's balance sheet showed $7,561,045 in
total assets, $14,217,161 in total liabilities, and $4,210,000 in
total redeemable preferred stock, resulting in a $10,866,116
stockholders' deficit. The Company had a $4,060,788 deficit at
Dec. 31, 2005.
The Company's June 30 balance sheet also showed strained liquidity
with $3,025,405 in total current assets available to pay
$10,895,314 in total current liabilities coming due within the
next 12 months.
Full-text copies of the Company's second quarter financials are
available for free at http://ResearchArchives.com/t/s?12ed
Headquartered in Brea, California, Naturade Inc. (OTC BB:NRDCE.OB)
-- http://www.naturade.com/-- distributes nutraceutical
supplements. The Company filed for chapter 11 protection on
Aug. 31, 2006 (Bankr. C.D. Calif. Case No. 06-11493). Richard H.
Golubow, Esq., Robert E. Opera, Esq. and Sean A. O'Keefe, Esq., at
Winthrop Couchot P.C., in Newport Beach, California, represent the
Debtor. When the Debtor filed for protection from its creditors,
it listed assets of $10,255,402 and debts of $18,427,161.
NATURADE INC: U.S. Trustee Names Seven-Member Creditors' Committee
------------------------------------------------------------------
The U.S. Trustee for Region 16 appointed seven creditors to serve
on an Official Committee of Unsecured Creditors in Naturade Inc.'s
chapter 11 case:
1. Symco, Inc.
Douglas Wyatt
70 Sheath Drive
Sedona, AZ 86336
Tel: (928) 282-9476
Fax: (928) 282-9476
2. CSB Nutrition Corporation
Craig Shields
P.O. Box 196
Pleasant Grove, UT 84062
Tel: (801) 921-3320
Fax: (801) 796-2042
3. Nellson Nutraceutical
Donald St. Clair
5801 Ayala Avenue
Irwindale, CA 91706
Tel: (626) 815-3323
Fax: (626) 812-6511
4. Consolidated Services Container & Display, Inc.
Betty Selsted
990 North Amelia Avenue
San Dimas, CA 91773-1401
Tel: (909) 447-8250
Fax: (909) 305-8763
5. Advanced Protein Systems, LLC
Robert A. Davies, President
601 South 54th Avenue, Suite 101
Tel: (602) 353-8800
Fax: (602) 353-8801
6. Abco Laboratories, Inc.
David Baron or Allen Baron
2450 West Watney Way
Fairfield, CA 94533
Tel: (707) 432-2200
Fax: (707) 432-2230
7. George Blanco, Partner
BDO Seidman, LLP
1900 Avenue of the Stars, 11th Floor
Los Angeles, CA 90067
Tel: (310) 557-8500
Fax: (310) 557-1777
The Committee has selected Dean G. Rallis Jr., Esq., at
SulmeyerKupetz, PC, to represent it in the Debtor's chapter 11
proceedings.
Official creditors' committees have the right to employ legal and
accounting professionals and financial advisors, at the Debtor's
expense. They may investigate the Debtors' business and financial
affairs. Importantly, official committees serve as fiduciaries to
the general population of creditors they represent. Those
committees will also attempt to negotiate the terms of a
consensual chapter 11 plan -- almost always subject to the terms
of strict confidentiality agreements with the Debtors and other
core parties-in-interest. If negotiations break down, the
Committee may ask the Bankruptcy Court to replace management with
an independent trustee. If the Committee concludes reorganization
of the Debtors is impossible, the Committee will urge the
Bankruptcy Court to convert the chapter 11 cases to a liquidation
proceeding.
Based in Brea, CA, Naturade Inc. -- http://www.naturade.com/--
is a distributor of nutraceutical supplements. The Company filed
for chapter 11 protection on Aug. 31, 2006 (Bankr. C.D. Calif.
Case No. 06-11493). Richard H. Golubow, Esq., Robert E. Opera,
Esq., and Sean A. O'Keefe, Esq., at Winthrop Couchot P.C.,
represent the Debtor. As of June 30, 2006, the Debtor reported
total assets of $10,255,402 and total debts of $18,427,161.
NCT GROUP: June 30 Stockholders' Deficit Increases to $168 Million
------------------------------------------------------------------
At June 30, 2006, NCT Group, Inc.'s balance sheet showed total
assets of $3,819,000 and total liabilities of $172,364,000,
resulting in a total capital deficit of $168,545,000. The
company's total capital deficit at Dec. 31, 2005, stood at
$147,314,000.
The company's balance as of June 30, 2006, also showed negative
working capital with $1,071,000 in total current assets and
$158,536,000 in total current liabilities.
For the three months ended June 30, 2006, the company incurred
an $8,152,000 net loss on $529,000 of total revenues, compared to
a $21,239,000 net loss on $844,000 of total revenues for the
same quarter in 2005.
Full-text copies of the company's financial statements for the
quarter ended June 30, 2006, are available for free at:
http://researcharchives.com/t/s?12e6
NCT Group, Inc., designs products, and develops and license
technologies based on its portfolio of patents and related
proprietary rights and extensive technological know-how. The
Company's business is organized into three operating segments:
communications, media and technology.
NEW RIVER: Wants Marine Realty as Real Estate Agent
---------------------------------------------------
New River Dry Dock, Inc., asks the Honorable Raymond B. Ray of the
U.S. Bankruptcy Court for the Southern District of Florida in Fort
Lauderdale for authority to employ Christopher Denison and Marine
Realty, Inc., as its real estate agent.
The Debtor owns a parcel of real estate located at 3100 State Road
84, Fort Lauderdale, Florida. The property consists of 5.6 acres
of New River of which 3.08 acres are upland and 2.6 acres are
submerged basin. The property was formerly operated as a shipyard
and dry dock facility. The Debtor wants Christopher Denison to
market this property
Mr. Denison disclosed that Marine Realty will receive a 4%
commission of the gross sales price.
Mr. Denison assures the Court that he and the Firm hold no
interest adverse to the Debtor and are disinterested as that term
is defined in Section 101(14) and required by Section 327 of the
Bankruptcy Code.
New River Dry Dock, Inc., filed for chapter 11 protection on
July 18, 2006 (Bankr. S.D. Fla. Case No. 06-13274). James H.
Fierberg, Esq., at Berger Singerman, P.A., represents the
Debtor in its restructuring efforts. Mindy A. Mora, Esq., at
Bilzin Sumberg Baena Price & Axelrod LLP represents the Official
Committee of Unsecured Creditors. When the Debtor filed for
protection from its creditors, it estimated assets between
$10 million and $50 million and its debts between $1 million to
$10 million.
NEWPARK RESOURCES: Moody's Assigns Loss-Given-Default Ratings
-------------------------------------------------------------
In connection with Moody's Investors Service's implementation of
its new Probability-of-Default and Loss-Given-Default rating
methodology for the oilfield service and refining and marketing
sectors last week, the rating agency confirmed its B1 Corporate
Family Rating for Newpark Resources Inc., and its B2 rating on the
company's Senior Secured Guaranteed Term Loan B. Additionally,
Moody's assigned those debentures an LGD4 rating suggesting
lenders will experience a 59% loss in the event of default.
Moody's explains that current long-term credit ratings are
opinions about expected credit loss, which incorporate both the
likelihood of default and the expected loss in the event of
default. The LGD rating methodology will disaggregate these two
key assessments in long-term ratings. The LGD rating methodology
will also enhance the consistency in Moody's notching practices
across industries and will improve the transparency and accuracy
of Moody's ratings as Moody's research has shown that credit
losses on bank loans have tended to be lower than those for
similarly rated bonds.
Probability-of-default ratings are assigned only to issuers, not
specific debt instruments, and use the standard Moody's alpha-
numeric scale. They express Moody's opinion of the likelihood
that any entity within a corporate family will default on any of
its debt obligations.
Loss-given-default assessments are assigned to individual rated
debt issues -- loans, bonds, and preferred stock. Moody's opinion
of expected loss are expressed as a percent of principal and
accrued interest at the resolution of the default, with
assessments ranging from LGD1 (loss anticipated to be 0% to 9%) to
LGD6 (loss anticipated to be 90% to 100%).
Headquartered in Metairie, Louisiana, Newpark Resources Inc. --
http://www.newpark.com/-- provides fluids management,
environmental, and oilfield services to the oil and gas
exploration and production industry.
NORTEL NETWORKS: Inks Multi-Year Agreement With Videotron Ltd.
-------------------------------------------------------------
Nortel Networks Corporation has signed a multi-year agreement with
Videotron Ltd.
Videotron is a cable operator and integrated communications
supplier in Quebec. Nortel Networks will become Videotron's
primary VoIP technology and professional services provider to
expand full-featured telephony services to its 1.5 million
customers.
Nortel is providing Videotron with a complete, end-to-end VoIP
solution incorporating Nortel IMS-ready technology and Nortel
Global Services. This includes project management, multi-vendor
integration and testing, security assessment, and deployment to
help ensure a smooth end-to-end network implementation. Nortel is
also providing technical support, emergency recovery and repair
services to enhance ongoing reliability.
"Nortel has powerful momentum in the cable VoIP market by helping
cable providers rapidly and cost-effectively offer new voice,
video and data services," said Tom Buttermore, general manager,
Global Cable Solutions, Nortel. "The strength and experience of
our Global Services gives Vid,otron a powerful ally in expanding
cable telephony offer across their service area."
Originally launched in January 2005, Videotron's cable telephone
service had 283,000 subscribers on June 30, an increase of 120,000
in the first half of 2006. Videotron's cable telephony service is
available in 74% of its total service area.
About Videotron
Videotron Ltd. -- http://www.videotron.com/-- a wholly owned
subsidiary of Quebecor Media Inc., is an integrated communications
company engaged in cable television, interactive multimedia
development, Internet access services, residential telephone
service and wireless phone service. Videotron provides new
technologies with its illico interactive television system and its
broadband network, which supports high-speed cable Internet
access, analog and digital cable television, and other services.
About Nortel Networks
Headquartered in Ontario, Canada, Nortel Networks Corporation
(NYSE/TSX: NT) -- http://www.nortel.com/-- delivers technology
solutions encompassing end-to-end broadband, Voice over IP,
multimedia services and applications, and wireless broadband
designed to help people solve the world's greatest challenges.
Nortel does business in more than 150 countries.
* * *
As reported in the Troubled Company Reporter on July 10, 2006,
Dominion Bond Rating Service confirmed the long-term ratings of
Nortel Networks Capital Corporation, Nortel Networks Corporation,
and Nortel Networks Limited at B (low) along with the preferred
share ratings of Nortel Networks Limited at Pfd-5 (low). All
trends are Stable.
DBRS confirmed B (low) Stb Senior Unsecured Notes; B (low) Stb
Convertible Notes; B (low) Stb Notes & Long-Term Senior Debt;
Pfd-5 (low) Stb Class A, Redeemable Preferred Shares; and Pfd-5
(low) Stb Class A, Non-Cumulative Redeemable Preferred Shares.
Standard & Poor's also affirmed its 'B-' long-term and 'B-2'
short-term corporate credit ratings on the company, and assigned
its 'B-' senior unsecured debt rating to the company's proposed
$2 billion notes. The outlook is stable.
NORTEL NETWORKS: Moody's Assigns Loss-Given-Default Ratings
-----------------------------------------------------------
In connection with Moody's Investors Service's implementation
of its new Probability-of-Default and Loss-Given-Default
rating methodology, the rating agency upgraded its B3 Corporate
Family Rating for Nortel Networks Corp. to B2.
Additionally, Moody's revised its probability-of-default ratings
and assigned loss-given-default ratings on these loans and bond
debt obligations:
Projected
Old POD New POD LGD Loss-Given
Debt Issue Rating Rating Rating Default
---------- ------- ------- ------ ----------
$1.8 billion 4.25%
Convertible Senior
Notes 2008 B3 B3 LGD4 67%
$200 million 6.875%
Senior Notes
due 2023 B3 B3 LGD4 67%
$450 million 10.75%
Senior Notes
due 2016 B3 B3 LGD4 67%
$550 million 10.125%
Senior Notes
due 2013 B3 B3 LGD4 67%
$1 billion Floating
Rate Senior
Notes 2011 (L+425) B3 B3 LGD4 67%
$150 million 7.875%
Senior Notes
due 2026 B3 B3 LGD4 67%
Moody's explains that current long-term credit ratings are
opinions about expected credit loss, which incorporate both the
likelihood of default and the expected loss in the event of
default. The LGD rating methodology will disaggregate these two
key assessments in long-term ratings. The LGD rating methodology
will also enhance the consistency in Moody's notching practices
across industries and will improve the transparency and accuracy
of Moody's ratings as Moody's research has shown that credit
losses on bank loans have tended to be lower than those for
similarly rated bonds.
Probability-of-default ratings are assigned only to issuers, not
specific debt instruments, and use the standard Moody's alpha-
numeric scale. They express Moody's opinion of the likelihood
that any entity within a corporate family will default on any of
its debt obligations.
Loss-given-default assessments are assigned to individual rated
debt issues -- loans, bonds, and preferred stock. Moody's opinion
of expected loss are expressed as a percent of principal and
accrued interest at the resolution of the default, with
assessments ranging from LGD1 (loss anticipated to be 0% to 9%) to
LGD6 (loss anticipated to be 90% to 100%).
Headquartered in Ontario, Canada, Nortel Networks Corporation
(NYSE/TSX: NT) -- http://www.nortel.com/-- is a recognized leader
in delivering communications capabilities that enhance
the human experience, ignite and power global commerce, and secure
and protect the world's most critical information. Serving both
service provider and enterprise customers, Nortel
delivers innovative technology solutions encompassing end-to-end
broadband, Voice over IP, multimedia services and applications,
and wireless broadband designed to help people solve the world's
greatest
NORTH AMERICAN: Moody's Assigns Loss-Given-Default Rating
---------------------------------------------------------
In connection with Moody's Investors Service's implementation of
its new Probability-of-Default and Loss-Given-Default rating
methodology for the oilfield service and refining and marketing
sectors last week, the rating agency confirmed its B3 Corporate
Family Rating for North American Energy Partners Inc.
Moody's also revised or held its probability-of-default ratings
and assigned loss-given-default ratings on these debentures:
Projected
Old POD New POD LGD Loss-Given
Debt Issue Rating Rating Rating Default
---------- ------- ------- ------ ----------
9% Sr. Sec. Gtd.
Global Notes
Due 2010 B3 B1 LGD2 29%
8.75% Sr. Unsec.
Gtd. Global Notes
Due 2011 Caa1 Caa1 LGD5 72%
Moody's explains that current long-term credit ratings are
opinions about expected credit loss which incorporate both the
likelihood of default and the expected loss in the event of
default. The LGD rating methodology will disaggregate these two
key assessments in long-term ratings. The LGD rating methodology
will also enhance the consistency in Moody's notching practices
across industries and will improve the transparency and accuracy
of Moody's ratings as Moody's research has shown that credit
losses on bank loans have tended to be lower than those for
similarly rated bonds.
Probability-of-default ratings are assigned only to issuers, not
specific debt instruments, and use the standard Moody's alpha-
numeric scale. They express Moody's opinion of the likelihood
that any entity within a corporate family will default on any of
its debt obligations.
Loss-given-default assessments are assigned to individual rated
debt issues -- loans, bonds, and preferred stock. Moody's opinion
of expected loss are expressed as a percent of principal and
accrued interest at the resolution of the default, with
assessments ranging from LGD1 (loss anticipated to be 0% to 9%) to
LGD6 (loss anticipated to be 90% to 100%).
Based in Acheson, Alberta, Canada, North American Energy Partners
Inc. provides mining and site preparation, piling and pipeline
installation services for oil, natural gas and natural resource
companies.
OMNE STAFFING: Ct. Expands Scope of Duties of Trustee's Counsel
---------------------------------------------------------------
The U.S. Bankruptcy Court for the District of New Jersey granted
the request of Charles M. Forman, the Chapter 11 Trustee appointed
in Omne Staffing Inc. and its debtor-affiliates' cases, to expand
the scope of Jones Vargas, P.A.'s retention as his special
counsel, nunc pro tunc to Aug. 24, 2006.
In addition to Jones Vargas' services under a Feb. 4, 2005 Court
order approving its retention, the Trustee wants the Firm to
represent the estate's interest with respect to the probate of the
last will and testament of Barry M. Sinnins, one of the Debtors'
principals, in Las Vegas, Clark County, Nevada.
Jones Vargas agreed to represent the Trustee at its customary
hourly rates, on a pro rata basis.
The Trustee told the Court that Jones Vargas has the requisite
experience in real estate, probate and decedent estate, bankruptcy
and state and federal court litigation.
Janet L. Chubb, Esq., an attorney at Jones Vargas, assured the
Court that the Firm does not hold any interest adverse to the
Debtors and is disinterested within the meaning of Sec. 101(14) of
the Bankruptcy Code.
Headquartered in Cranford, New Jersey, Omne Staffing Inc. and its
debtor-affiliates filed for chapter 11 protection on April 9, 2004
(Bankr. D. N.J. Case No. 04-22316). John K. Sherwood, Esq., at
Lowenstein Sandler represents the Debtors in their restructuring
efforts. Charles M. Forman serves as trustee, and is represented
by Gail B. Cooperman at Forman, Holt & Eliades LLC. When the
Company filed for protection from their creditors, they listed
both estimated debts and assets of over $10 million.
OXFORD MEDIA: June 30 Stockholders' Deficit Rises to $6,033,897
---------------------------------------------------------------
At June 30, 2006, Oxford Media, Inc.'s balance sheet reported
total assets of $4,698,099 and total liabilities of $10,731,996,
resulting in a total stockholders' deficit of $6,033,897, compared
with a $608,414 deficit at Dec. 31, 2005.
The company's balance sheet at June 30, 2006, also reported
negative working capital with $1,814,042 in total current assets
and $8,969,787 in total current liabilities.
For the three months ended June 30, 2006, the company's net loss
increased to $4,201,807 from a $292,343 net loss for the three
months ended June 30, 2005.
Total revenues for the current quarter also increased to
$1,662,872 from total revenues of $996,412 for the same period
last year.
Full-text copies of the company's financial statements for the
quarter ended June 30, 2006, are available for free at
http://researcharchives.com/t/s?12df
Headquartered in Irvine, California, Oxford Media, Inc.,
-- http://www.oxfordmediainc.com/-- develops private broadband
networks and proprietary software and hardware.
PARKER DRILLING: Moody's Assigns Loss-Given-Default Ratings
-----------------------------------------------------------
In connection with Moody's Investors Service's implementation of
its new Probability-of-Default and Loss-Given-Default rating
methodology for the oilfield service and refining and marketing
sectors last week, the rating agency confirmed its B2 Corporate
Family Rating for Parker Drilling Company, as well as it B2 rating
on the company's 9.625% Senior Unsecured Guaranteed Global Notes
Due 2013, and Senior Unsecured Guaranteed Floating Rate Global
Notes Due 2010. Moody's assigned those debentures an LGD4 rating
suggesting noteholders will experience a 55% loss in the event of
default.
Moody's explains that current long-term credit ratings are
opinions about expected credit loss which incorporate both the
likelihood of default and the expected loss in the event of
default. The LGD rating methodology will disaggregate these two
key assessments in long-term ratings. The LGD rating methodology
will also enhance the consistency in Moody's notching practices
across industries and will improve the transparency and accuracy
of Moody's ratings as Moody's research has shown that credit
losses on bank loans have tended to be lower than those for
similarly rated bonds.
Probability-of-default ratings are assigned only to issuers, not
specific debt instruments, and use the standard Moody's alpha-
numeric scale. They express Moody's opinion of the likelihood
that any entity within a corporate family will default on any of
its debt obligations.
Loss-given-default assessments are assigned to individual rated
debt issues -- loans, bonds, and preferred stock. Moody's opinion
of expected loss are expressed as a percent of principal and
accrued interest at the resolution of the default, with
assessments ranging from LGD1 (loss anticipated to be 0% to 9%) to
LGD6 (loss anticipated to be 90% to 100%).
Headquartered in Houston, Texas, Parker Drilling Company --
http://www.parkerdrilling.com/-- provides contract drilling and
drilling-related services worldwide.
PATHMARK STORES: Moody's Assigns LGD5 Loss-Given-Default Rating
---------------------------------------------------------------
In connection with Moody's Investors Service's implementation of
its new Probability-of-Default and Loss-Given-Default rating
methodology for the U.S. and Canadian Retail sector, the rating
agency confirmed its B3 Corporate Family Rating for Pathmark
Stores, Inc., and upgraded its Caa2 rating to Caa1 on the
Company's Senior Subordinated Global Notes. Additionally, Moody's
assigned an LGD5 rating to those bonds, suggesting noteholders
will experience a 74% loss in the event of a default.
Moody's explains that current long-term credit ratings are
opinions about expected credit loss, which incorporate both the
likelihood of default and the expected loss in the event of
default. The LGD rating methodology will disaggregate these two
key assessments in long-term ratings. The LGD rating methodology
will also enhance the consistency in Moody's notching practices
across industries and will improve the transparency and accuracy
of Moody's ratings as Moody's research has shown that credit
losses on bank loans have tended to be lower than those for
similarly rated bonds.
Probability-of-default ratings are assigned only to issuers, not
specific debt instruments, and use the standard Moody's
alpha-numeric scale. They express Moody's opinion of the
likelihood that any entity within a corporate family will default
on any of its debt obligations.
Loss-given-default assessments are assigned to individual rated
debt issues -- loans, bonds, and preferred stock. Moody's opinion
of expected loss are expressed as a percent of principal and
accrued interest at the resolution of the default, with
assessments ranging from LGD1 (loss anticipated to be 0% to 9%) to
LGD6 (loss anticipated to be 90% to 100%).
Pathmark Stores, Inc., (Nasdaq: PTMK)-- http://www.pathmark.com/-
- is a regional supermarket currently operating 142 supermarkets
primarily in the New York - New Jersey and Philadelphia
metropolitan areas. The Company filed for chapter 11 protection
on July 12, 2000 (Bankr. Case 00-02963). The Court confirmed its
prepackaged Plan of Reorganization on Sept. 7, 2004.
PENN NATIONAL: Moody's Assigns Loss-Given-Default Ratings
---------------------------------------------------------
In connection with Moody's Investors Service's implementation of
its new Probability-of-Default and Loss-Given-Default rating
methodology for the Gaming, Lodging & Leisure sector, the rating
agency confirmed Penn National Gaming, Inc.'s Ba2 Corporate Family
Rating.
Additionally, Moody's revised or confirmed its probability-of-
default ratings and assigned loss-given-default ratings on these
loans:
Projected
Old POD New POD LGD Loss-Given
Debt Issue Rating Rating Rating Default
---------- ------- ------- ------ ----------
Revolver Ba2 Ba2 LGD3 43%
Term Loan A Ba2 Ba2 LGD3 43%
Term Loan B Ba2 Ba2 LGD3 43%
6-7/8% Senior
Subordinated Notes Ba3 B1 LGD6 91%
6-3/4% Senior
Subordinated Notes B1 B1 LGD6 95%
Moody's current long-term credit ratings are opinions about
expected credit loss, which incorporate both the likelihood of
default and the expected loss in the event of default.
The LGD rating methodology will disaggregate these two key
assessments in long-term ratings. The LGD rating methodology will
also enhance the consistency in Moody's notching practices across
industries and will improve the transparency and accuracy of
Moody's ratings as its research has shown that credit losses on
bank loans have tended to be lower than those for similarly rated
bonds.
Probability-of-default ratings are assigned only to issuers, not
specific debt instruments, and use the standard Moody's alpha-
numeric scale. They express Moody's opinion of the likelihood
that any entity within a corporate family will default on any of
its debt obligations.
Loss-given-default assessments are assigned to individual rated
debt issues -- loans, bonds, and preferred stock Moody's opinion
of expected loss are expressed as a percent of principal and
accrued interest at the resolution of the default, with
assessments ranging from LGD1 (loss anticipated to be 0% - 9%) to
LGD6 (loss anticipated to be 90% - 100%).
Penn National Gaming, Inc. -- http://www.pngaming.com/-- owns and
operates casino and horse racing facilities with a focus on slot
machine entertainment. The Company presently operates 15
facilities in 13 jurisdictions including Colorado, Illinois,
Indiana, Iowa, Louisiana, Maine, Mississippi, Missouri, New
Jersey, Ohio, Pennsylvania, West Virginia, and Ontario. In
aggregate, Penn National's facilities feature over 17,500 slot
machines, over 400 table games, over 2,000 hotel rooms and
approximately 575,000 square feet of gaming floor space. The
property statistics exclude two Argosy properties, which the
company anticipates divesting, but are inclusive of the Company's
Casino Magic -- Bay St. Louis, in Bay St. Louis, Mississippi, and
the Boomtown Biloxi casino in Biloxi, Mississippi, which remain
closed following extensive damage incurred as a result of
Hurricane Katrina.
PLY-GEM: Moody's Lowers Rating on $360MM Notes to Caa1 from B3
--------------------------------------------------------------
Moody's downgraded Ply-Gem's existing debt to reflect the weakened
outlook for the new home construction business, high leverage, and
credit statistics that had the company weakly positioned in the B1
rating category. The company is now considered to be strongly
positioned in the B2 rating category. The ratings outlook is
stable.
These ratings were assigned:
* $175 million incremental senior secured term loan, due 2011,
assigned Ba3 (LGD2, 27%);
* $117 million senior secured 2nd lien term loan, due 2011,
assigned B3 (LGD4, 65%).
These ratings actions have been taken:
* Corporate Family Rating, downgraded to B2 from B1;
* Probability-of-default rating, downgraded to B2 from B1;
* $121 million incremental senior secured term loan, due 2011,
downgraded to Ba3 from Ba2, LGD affirmed (LGD2, 27%);
* $277 million senior secured term loan, due 2011, downgraded
to Ba3 from Ba2, LGD affirmed (LGD2, 27%);
* $70 million senior secured revolving credit facility, due
2009, downgraded to Ba3 from Ba2, LGD affirmed (LGD2, 27%);
* $360 million 9% senior subordinated notes, due 2012,
downgraded to Caa1 from B3, LGD changed to (LGD5, 86%) from
(LGD5, 80%).
The ratings outlook is stable.
The B2 Corporate Family Rating reflects the company's high
leverage, reliance on the new home construction market for 58% of
total revenues, post the planned acquisition of Alcoa Home
Exteriors. The ratings benefit from the company's position as the
largest manufacturer of vinyl siding in the US and its post
acquisition revenue mix.
The ratings may deteriorate if free cash flow after capital
expenditures to total debt were to decline to under 3% on a
sustainable basis or if the company's debt to EBITDA increases
above 6 times.
The ratings could improve if the company's debt to EBITDA were to
decline below 4 times with the expectation for continued
improvement, and if free cash flow after capital expenditures to
total debt were to improve above 8% on a sustainable basis.
Ply-Gem is headquartered in Kearney, Missouri. Ply-Gem is a
manufacturer of vinyl siding, windows, patio doors, fencing,
railing, and decking serving both the new construction and R&R end
markets. Revenues for 2005 were $839 million.
PRESTIGE BRANDS: $60MM Secured Revolver Gets Moody's LGD3 Rating
----------------------------------------------------------------
In connection with Moody's Investors Service's implementation of
its new Probability-of-Default and Loss-Given-Default rating
methodology for the US Consumer Products, Beverage, Toy, Natural
Product Processors, Packaged Food Processors and Agricultural
Cooperative sectors, the rating agency confirmed its B1 Corporate
Family Rating for Prestige Brands, Inc.
Additionally, Moody's revised and held its probability-of-default
ratings and assigned loss-given-default ratings on these loans and
bond debt obligations:
Projected
Old POD New POD LGD Loss-Given
Debt Issue Rating Rating Rating Default
---------- ------- ------- ------ ----------
$60 million
Senior Secured
Revolver B1 Ba3 LGD3 38%
$365 million
Senior Secured
Term Loan B1 Ba3 LGD3 38%
$126 million
Sr. Subordinated
Notes B3 B3 LGD6 90%
Moody's explains that current long-term credit ratings are
opinions about expected credit loss, which incorporate both the
likelihood of default and the expected loss in the event of
default. The LGD rating methodology will disaggregate these two
key assessments in long-term ratings. The LGD rating methodology
will also enhance the consistency in Moody's notching practices
across industries and will improve the transparency and accuracy
of Moody's ratings as Moody's research has shown that credit
losses on bank loans have tended to be lower than those for
similarly rated bonds.
Probability-of-default ratings are assigned only to issuers, not
specific debt instruments, and use the standard Moody's alpha-
numeric scale. They express Moody's opinion of the likelihood
that any entity within a corporate family will default on any of
its debt obligations.
Loss-given-default assessments are assigned to individual rated
debt issues -- loans, bonds, and preferred stock. Moody's opinion
of expected loss are expressed as a percent of principal and
accrued interest at the resolution of the default, with
assessments ranging from LGD1 (loss anticipated to be 0% to 9%) to
LGD6 (loss anticipated to be 90% to 100%).
Prestige Brands, Inc., headquartered in Irvington, New York, is a
provider of branded consumer products in the OTC, Household and
Personal Care segments, with brands including Compound W,
Chloraseptic, Comet, and Spic and Span. The company was formed by
GTCR Golder Rauner to acquire Medtech Holdings, Inc., The Denorex
Company, the Spic and Span Company, and Bonita Bay Holdings from
February to April 2004. The company acquired the Little Remedies
brand through its acquisition of Vetco, Inc., in October 2004.
PRIDE INTERNATIONAL: Moody's Assigns Loss-Given-Default Ratings
---------------------------------------------------------------
In connection with Moody's Investors Service's implementation of
its new Probability-of-Default and Loss-Given-Default rating
methodology for the oilfield service and refining and marketing
sectors last week, the rating agency confirmed its Ba1 Corporate
Family Rating for Pride International Inc.
Additionally, Moody's revised or held its probability-of-default
ratings and assigned loss-given-default ratings on these loans and
bond debt obligations:
Projected
Old POD New POD LGD Loss-Given
Debt Issue Rating Rating Rating Default
---------- ------- ------- ------ ----------
7.375% Sr. Unsec.
Global Notes
Due 2014 Ba2 Ba2 LGD5 71%
Sr. Sec.
Revolving Credit
Facility Due 2009 Ba1 Baa2 LGD2 13%
Multiple Seniority
Shelf (Senior
Unsecured) (P)Ba2 (P)Ba2 LGD5 71%
Multiple Seniority
Shelf (Subordinate) (P)Ba3 (P)Ba2 LGD6 97%
Multiple Seniority
Shelf (Preferred) (P)B1 (P)Ba2 LGD6 97%
Moody's explains that current long-term credit ratings are
opinions about expected credit loss, which incorporate both the
likelihood of default and the expected loss in the event of
default. The LGD rating methodology will disaggregate these two
key assessments in long-term ratings. The LGD rating methodology
will also enhance the consistency in Moody's notching practices
across industries and will improve the transparency and accuracy
of Moody's ratings as Moody's research has shown that credit
losses on bank loans have tended to be lower than those for
similarly rated bonds.
Probability-of-default ratings are assigned only to issuers, not
specific debt instruments, and use the standard Moody's alpha-
numeric scale. They express Moody's opinion of the likelihood
that any entity within a corporate family will default on any of
its debt obligations.
Loss-given-default assessments are assigned to individual rated
debt issues -- loans, bonds, and preferred stock. Moody's opinion
of expected loss are expressed as a percent of principal and
accrued interest at the resolution of the default, with
assessments ranging from LGD1 (loss anticipated to be 0% to 9%) to
LGD6 (loss anticipated to be 90% to 100%).
Headquartered in Houston, Texas, Pride International Inc. --
http://www.prideinternational.com/-- provides onshore and
offshore contract drilling and related services to oil and gas
companies worldwide.
RADNOR HOLDINGS: Meeting of Creditors Continued to October 23
-------------------------------------------------------------
The U.S. Trustee for Region 3 will continue the meeting of Radnor
Holdings Corporation and its debtor-affiliates' creditors at 1:00
p.m., on Oct. 23, 2006, at the U.S. District Court, Room 2112, 844
King St., in Wilmington, Delaware.
All creditors are invited, but not required, to attend. This
Meeting of Creditors offers the one opportunity in a bankruptcy
proceeding for creditors to question a responsible officer of the
Debtor under oath about the company's financial affairs and
operations that would be of interest to the general body of
creditors.
Headquartered in Radnor, Pennsylvania, Radnor Holdings Corporation
-- http://www.radnorholdings.com/-- manufactures and distributes
a broad line of disposable food service products in the United
States, and specialty chemicals worldwide. The Debtor and its
affiliates filed for chapter 11 protection on Aug. 21, 2006
(Bankr. D. Del. Case No. 06-10894). Gregg M. Galardi, Esq., and
Mark L. Desgrosseilliers, Esq., at Skadden, Arps, Slate, Meagher,
represent the Debtors. Donald J. Detweiler, Esq., and Victoria
Watson Counihan, Esq., at Greenberg Traurig, LLP, serves the
Official Committee of Unsecured Creditors. When the Debtors filed
for protection from their creditors, they listed total assets of
$361,454,000 and total debts of $325,300,000.
RADNOR HOLDINGS: Hires KPMG LLP as Accountant and Tax Advisor
-------------------------------------------------------------
The Honorable Peter J. Walsh of the U.S. Bankruptcy Court for the
District of Delaware gave Radnor Holdings Corporation and its
debtor-affiliates permission to employ KPMG LLP as their
accountant and tax financial advisor, nunc pro tunc to
Aug. 21, 2006.
As reported in the Troubled Company Reporter on Sept. 14, 2006,
KPMG will provide appropriate and feasible accounting and tax
financial advisory services in the course of the Debtors' Chapter
11 cases. The services include tax compliance, tax provision
assistance and tax advisory services, including advice and
assistance on the tax consequences of a Chapter 11 Plan.
The hourly rates currently charged by KPMG's professionals are:
Designation Hourly Rate
----------- -----------
Partner $625 - $750
Managing Director / Sr. Manager 475 - 650
Manager 325 - 500
Senior 250 - 500
Staff 225 - 300
To the best of the Debtors' knowledge, KPMG does not hold any
interest adverse to their estates and is a "disinterested person"
as that term is defined in Section 101(14) of the Bankruptcy Code.
Headquartered in Radnor, Pennsylvania, Radnor Holdings Corporation
-- http://www.radnorholdings.com/-- manufactures and distributes
a broad line of disposable food service products in the United
States, and specialty chemicals worldwide. The Debtor and its
affiliates filed for chapter 11 protection on Aug. 21, 2006
(Bankr. D. Del. Case No. 06-10894). Gregg M. Galardi, Esq., and
Mark L. Desgrosseilliers, Esq., at Skadden, Arps, Slate, Meagher,
represent the Debtors. Donald J. Detweiler, Esq., and Victoria
Watson Counihan, Esq., at Greenberg Traurig, LLP, serves the
Official Committee of Unsecured Creditors. When the Debtors filed
for protection from their creditors, they listed total assets of
$361,454,000 and total debts of $325,300,000.
RICK FLAUGH: Case Summary & 19 Largest Unsecured Creditors
----------------------------------------------------------
Debtors: Rick E. Flaugh and Cheryl A. Flaugh
521 Thurston Court
Fort Wayne, IN 46825
Bankruptcy Case No.: 06-11735
Chapter 11 Petition Date: October 3, 2006
Court: Northern District of Indiana (Fort Wayne Division)
Debtors' Counsel: Daniel Serban, Esq.
1016 Standard Federal Plaza
200 East Main Street
Fort Wayne, IN 46802
Tel: (260) 969-5000
Fax: (260) 969-5001
Estimated Assets: $1 Million to $100 Million
Estimated Debts: $1 Million to $100 Million
Debtors' 19 Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
------ --------------- ------------
Department of Treasury Taxes Owed $29,497
Internal Revenue Service
ACS Support-Stop 813G
P.O. Box 145566
Cincinnati, OH 45250
Ray Watts Loan $15,000
1537 Kenymead Street
Orange, CA 92869
Partner's First FCU Charge Off Account $13,000
1330 Directors Row
Fort Wayne, IN 46808
Parkview Health Medical Collection $1,098
c/o Harris & Harris Ltd.
600 West Jackson Boulevard Medical Services $10,684
Suite 400
Chicago, IL 60661
Fort Wayne Neurological Cnt. Medical Collection $6,975
c/o Snow & Sauerteig LLP
203 East Berry Street
Suite 1310
Fort Wayne, IN 46802
SCS Credit Charge Off Account $4,900
Beneficial Indiana Collection on $4,302
credit account
ONB Insurance Agency Expired Insurance $3,420
Policy
Joss Reed Loan $2,500
Nieter & Goeglein Legal Services $2,470
Fort Wayne Cardiology Medical Collection $2,228
Preferred Anesthesia Medical Services $1,560
Consultants, P.C.
Omni Credit Union Charge Off Account $1,000
Ron Stahl Loan $1,000
DeCook & Associates Loan $500
Ear, Nose and Throat Assoc. Medical Collection $763
Fort Wayne Radiology Medical Collection $865
Gebfert-Park Family Dental Services $557
Dentistry, P.C. Collection
Marshall Fields Credit Card $495
ROBERT HAAG: Case Summary & 10 Largest Unsecured Creditors
----------------------------------------------------------
Debtor: Robert F. Haag
25 Heath Row
Marstons Mills, MA 02648
Bankruptcy Case No.: 06-13476
Chapter 11 Petition Date: October 3, 2006
Court: District of Massachusetts (Boston)
Debtor's Counsel: Richard J. Cohen, Esq.
Richard J. Cohen, P.C.
Monument Square
P.O. Box 1085
Centerville, MA 02632
Tel: (508) 771-6401
Fax: (508) 771-6216
Estimated Assets: $1 Million to $100 Million
Estimated Debts: $1 Million to $100 Million
Debtor's 10 Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
------ --------------- ------------
Internal Revenue Service Judgment U.S. $1,800,000
Automated Collected District Court
P.O. Box 4001
Woburn, MA 01888
Timothy Burke, Esq. Legal Services $67,000
Burke & Associates
400 Washington Street 303
Braintree, MA 02184
Cape Cod Bank and Trust Barnstable District $26,699
c/o Robert H. Clayton, Esq. Court Case No.
P.O. Box 978 0025CV0882
Hyannis, MA 02601
Orleans District Unknown
Court Case No.
0326CV0476
John Arthur, M.D. Medical $3,200
25 Main Street
Hyannis, MA 02601
American Express Travel Boston Municipal Unknown
c/o Gerald S. Shulman, Esq. Court Case No.
131 State Street, Suite 800 192791
Boston, MA 02109
Chase Bank Potential Deficiency Unknown
Line of credit secured
by real estate located
at 25 Heath Row,
Marstons Mills, MA
Edwin S. Mycock 25 Heath Row, Marstons Unknown
Mills, MA 02648
Hallsmith Sysco Food Unknown
Services, Inc.
TD Banknorth, N.A. Middlesex Superior Unknown
Court Case No.
05CV2198 Judgment
Town of Barnstable Town betterment Unknown
easements
SANMINA-SCI CORP: Moody's Assigns Loss-Given-Default Ratings
------------------------------------------------------------
In connection with Moody's Investors Service's implementation
of its new Probability-of-Default and Loss-Given-Default
rating methodology, the rating agency confirmed its Ba2 Corporate
Family Rating for Sanmina-SCI Corp.
Additionally, Moody's revised its probability-of-default ratings
and assigned loss-given-default ratings on these loans and bond
debt obligations:
Projected
Old POD New POD LGD Loss-Given
Debt Issue Rating Rating Rating Default
---------- ------- ------- ------ ----------
$600 million 8.125%
Senior Subordinated
Notes due 2016 B1 Ba3 LGD4 67%
$400 million 6.75%
Senior Subordinated
Notes due 2013 B1 Ba3 LGD4 67%
$525 million 3%
Convertible Subor.
Notes due 2007 B1 B1 LGD6 92%
Moody's explains that current long-term credit ratings are
opinions about expected credit loss, which incorporate both the
likelihood of default and the expected loss in the event of
default. The LGD rating methodology will disaggregate these two
key assessments in long-term ratings. The LGD rating methodology
will also enhance the consistency in Moody's notching practices
across industries and will improve the transparency and accuracy
of Moody's ratings as Moody's research has shown that credit
losses on bank loans have tended to be lower than those for
similarly rated bonds.
Probability-of-default ratings are assigned only to issuers, not
specific debt instruments, and use the standard Moody's alpha-
numeric scale. They express Moody's opinion of the likelihood
that any entity within a corporate family will default on any of
its debt obligations.
Loss-given-default assessments are assigned to individual rated
debt issues -- loans, bonds, and preferred stock. Moody's opinion
of expected loss are expressed as a percent of principal and
accrued interest at the resolution of the default, with
assessments ranging from LGD1 (loss anticipated to be 0% to 9%) to
LGD6 (loss anticipated to be 90% to 100%).
Headquartered in San Jose, California, Sanmina-SCI Corporation
(Nasdaq: SANM) -- http://www.sanmina-sci.com/-- is an electronics
contract manufacturing services companies providing a full
spectrum of integrated, value added solutions.
SANTA FE: 15375 Memorial Files Schedules of Assets & Liabilities
----------------------------------------------------------------
Santa Fe Mineral, Inc.'s sole shareholder, 15375 Memorial
Corporation, delivered its schedules of assets and liabilities to
the U.S. Bankruptcy Court for the District of Delaware,
disclosing:
Name of Schedule Assets Liabilities
---------------- ------ -----------
A. Real Property
B. Personal Property $105,722
C. Property Claimed
as Exempt
D. Creditors Holding
Secured Claims
E. Creditors Holding
Unsecured Priority Claims
F. Creditors Holding $310,455,573
Unsecured Nonpriority
Claims
--------- ------------
Total $105,722 $310,455,573
Headquartered in Houston, Texas, 15375 Memorial Corporation is the
sole shareholder of Santa Fe Mineral, Inc. Santa Fe Minerals is a
Wyoming based corporation dissolved in 2000. Under Wyoming law,
creditors of a dissolved corporation can recover their debts from
the dissolved corporation's shareholders, up to the value of the
assets that each shareholder received at the dissolution.
15375 Memorial and Santa Fe Minerals filed for chapter 11
protection on Aug. 16, 2006 (Bankr. D. Del. Case No. 06-10859 &
06-10860). When the Debtors filed for protection from their
creditors, they estimated their assets between $100,000 to
$500,000 and liabilities of more than $100 million.
SATELITES MEXICANOS: Taps Boyden Affiliate to Search for CEO
------------------------------------------------------------
Satelites Mexicanos, S.A. de C.V., seeks authority from the U.S.
Bankruptcy Court for the Southern District of New York to employ
Lebra, S.C., an affiliate of Boyden Global Executive Search, to
conduct a search for an individual to serve as the Debtor's chief
executive officer.
Sergio Miguel Angel Autrey Maza, chairman of the board of
directors, was designated by the Board as interim chief executive
officer in February 2005. Mr. Autrey will step down from the
position upon the hiring of a permanent chief executive officer.
The Debtor and the other significant parties-in-interest in its
case believe the time is right to begin the process of identifying
appropriate candidates for the chief executive officer position.
Accordingly, the Debtor seeks Boyden's assistance in conducting an
efficient and expedient search for a new chief executive officer.
Luis Lezama Cohen, the Boyden managing director assigned to
The Debtor, has extensive experience performing searches in the
telecommunications industry, performing 96 searches and 2,790
interviews for 26 companies, including Avantel, Qualcomm,
Televisa, Motorola, IBM de Mexico, and Skytel.
The Debtor believes that Boyden's advice and services will help it
identify and designate qualified candidates in a cost-effective,
efficient, and expedient manner.
Pursuant to an engagement letter with Boyden dated Sept. 11, 2006,
the firm will be paid a fixed fee of $184,000, plus corresponding
VAT tax, payable in three equal installments of $61,600 on:
* September 11, 2006;
* September 25, 2006; and
* the date when the successful candidate is hired.
No payments have been or will be made pending approval of the
Debtor's request.
Additional expenses like travel on behalf of candidates or Boyden
associates to conduct interviews are billed separately, with the
Debtor's prior consent, although no fees are anticipated.
If an individual placed by Boyden is terminated for cause or
resigns during the first year of employment, Boyden will perform a
replacement search, charging only for administrative expenses.
About Boyden
Boyden Global Executive Search is a global leader in the executive
search industry with more than 65 offices in 40 countries.
Founded in 1946 by Sidney Boyden, a former consultant with Booz-
Allen & Hamilton, Boyden specializes in high-level executive
search, management and human capital consulting across a broad
spectrum of industries, including the telecommunications industry.
Boyden's clients include the world's leading Fortune 500
companies, the World Bank, major universities and medical
institutions.
About Satelites Mexicanos
Satelites Mexicanos, S.A. de C.V., provides fixed satellite
services in Mexico. Satmex provides transponder capacity via its
satellites to customers for distribution of network and cable
television programming, direct-to-home television service, on-site
transmission of live news reports, sporting events and other video
feeds. Satmex also provides satellite transmission capacity to
telecommunications service providers for public telephone networks
in Mexico and elsewhere and to corporate customers for their
private business networks with data, voice and video applications.
Satmex also provides the government of the United Mexican States
with approximately 7% of its satellite capacity for national
security and public purposes without charge, under the terms of
the Orbital Concessions.
The Debtor filed for chapter 11 petition on August 11, 2006
(Bankr. S.D.N.Y. Case No. 06-11868). Luc A. Despins, Esq., at
Milbank, Tweed Hadley & McCloy LLP represents the Debtor in the
U.S. Bankruptcy proceedings. Attorneys from Galicia y Robles,
S.C., and Quijano Cortina Lopez y de la Torre give legal advice in
the Debtor's Mexican Bankrutpcy proceedings. UBS Securities LLC
and Valor Consultores, S.A. de C.V., give financial advice to the
Debtor. Steven Scheinman, Esq., Michael S. Stamer, Esq., and
Shuba Satyaprasad, Esq., at Akin Gump Strauss Hauer & Feld LLP
give legal advice to the Ad Hoc Existing Bondholders' Committee.
Dennis Jenkins, Esq., and George W. Shuster, Jr., Esq., at Wilmer
Cutler Pickering Hale and Dorr LLP give legal advice to Ad Hoc
Senior Secured Noteholders' Committee. As of July 24, 2006, the
Debtor has $905,953,928 in total assets and $743,473,721 in total
liabilities.
On May 25, 2005, certain holders of Satmex's Existing Bonds and
Senior Secured Notes filed an involuntary chapter 11 petition
against the Company (Bankr. S.D.N.Y. Case No. 05-13862). On
June 29, 2005, Satmex filed a voluntary petition for a Mexican
reorganization, known as a Concurso Mercantil, which was assigned
to the Second Federal District Court for Civil Matters for the
Federal District in Mexico City.
On August 4, 2005, Satmex filed a petition, pursuant to Section
304 of the Bankruptcy Code to commence a case ancillary to the
Concurso Proceeding and a motion for injunctive relief seeking,
among other things, to enjoin actions against Satmex or its assets
(Bankr. S.D.N.Y. Case No. 05-16103). (Satmex Bankruptcy News,
Issue No. 7; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)
SATELITES MEXICANOS: Galicia Represents Mexican Regulatory Agency
-----------------------------------------------------------------
Rafael Robles Miaja, Esq., a partner at Galicia y Robles, S.C., in
Mexico, disclosed that his firm currently represents the
Secretaria de Comunicaciones y Transportes -- Ministry of
Communications and Transportation -- an agency of the Government
of the United Mexican States with respect to matters unrelated to
Satelites Mexicanos, S.A. de C.V.'s case.
The Mexican Government has an equity interest in the Debtor, and
the SCT is the regulator of the Debtor's satellite operations.
As reported in the Troubled Company Reporter on Sept. 19, 2006 the
U.S. Bankruptcy Court for the Southern District of New York,
granted authority to the Debtor, to employ, on a final basis,
Galicia y Robles, as its special counsel for matters pertaining to
Mexican corporate law.
Mr. Robles assures the Court that Galicia has not and will not
represent the SCT in any matters related to the Debtor and to its
Chapter 11 case.
Satelites Mexicanos, S.A. de C.V., provides fixed satellite
services in Mexico. Satmex provides transponder capacity via its
satellites to customers for distribution of network and cable
television programming, direct-to-home television service, on-site
transmission of live news reports, sporting events and other video
feeds. Satmex also provides satellite transmission capacity to
telecommunications service providers for public telephone networks
in Mexico and elsewhere and to corporate customers for their
private business networks with data, voice and video applications.
Satmex also provides the government of the United Mexican States
with approximately 7% of its satellite capacity for national
security and public purposes without charge, under the terms of
the Orbital Concessions.
The Debtor filed for chapter 11 protection on Aug. 11, 2006
(Bankr. S.D.N.Y. Case No. 06-11868). Luc A. Despins, Esq., at
Milbank, Tweed Hadley & McCloy LLP represents the Debtor in the
U.S. Bankruptcy proceedings. Attorneys from Galicia y Robles,
S.C., and Quijano Cortina Lopez y de la Torre give legal advice in
the Debtor's Mexican Bankrutpcy proceedings. UBS Securities LLC
and Valor Consultores, S.A. de C.V., give financial advice to the
Debtor. Steven Scheinman, Esq., Michael S. Stamer, Esq., and
Shuba Satyaprasad, Esq., at Akin Gump Strauss Hauer & Feld LLP
give legal advice to the Ad Hoc Existing Bondholders' Committee.
Dennis Jenkins, Esq., and George W. Shuster, Jr., Esq., at Wilmer
Cutler Pickering Hale and Dorr LLP give legal advice to Ad Hoc
Senior Secured Noteholders' Committee. As of July 24, 2006, the
Debtor has $905,953,928 in total assets and $743,473,721 in total
liabilities.
On May 25, 2005, certain holders of Satmex's Existing Bonds and
Senior Secured Notes filed an involuntary chapter 11 petition
against the Company (Bankr. S.D.N.Y. Case No. 05-13862).
On June 29, 2005, Satmex filed a voluntary petition for a Mexican
reorganization, known as a Concurso Mercantil, which was assigned
to the Second Federal District Court for Civil Matters for the
Federal District in Mexico City.
On Aug. 4, 2005, Satmex filed a petition, pursuant to Section 304
of the Bankruptcy Code to commence a case ancillary to the
Concurso Proceeding and a motion for injunctive relief seeking,
among other things, to enjoin actions against Satmex or its assets
(Bankr. S.D.N.Y. Case No. 05-16103). (Satmex Bankruptcy News,
Issue No. 7; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000).
SEA CONTAINERS: Common Shares & Sr. Notes to Cease Trading on NYSE
------------------------------------------------------------------
Sea Containers Ltd. has been advised by the New York Stock
Exchange that its common shares and its Senior Notes will be
suspended from trading on the NYSE and NYSE Arca prior to the
market opening on Oct. 3, 2006. The NYSE will submit an
application to the Securities and Exchange Commission to delist
these securities.
The suspension applies to these NYSE listed securities of Sea
Containers Ltd:
-- Class A Common Shares (SCRA);
-- Class B Common Shares (SCRB);
-- 10 3/4% Senior Notes Due 2006 (SCR06);
-- 7-7/8% Senior Notes Due 2008 (SCR 08);
-- 12-1/2% Senior Notes Due 2009 (SCR 09); and
-- 10 1/2% Senior Notes Due 2012 (SCR 12).
The suspension also applies to these NYSE ARCA listed securities:
-- Class A Common Shares (SCRA); and
-- Class B Common Shares (SCRB).
Sea Containers received written notification from the NYSE on
Sept. 29, 2006, that the decision was reached because the company
has not filed its 2005 annual report on Form 10-K with the
Securities and Exchange Commission within six months following the
due date of such filing. The NYSE also noted that Sea Containers
has not yet filed its quarterly reports on Form 10-Q during 2006.
These conditions subjected Sea Containers' securities to the
NYSE's suspension and delisting procedures.
Sea Containers has informed the NYSE that, due to its focus on its
proposed restructuring and potential reorganization and the fact
that the Company remains uncertain as to when it will be able to
file its annual report, the Company is not in a position to
contest the involuntary suspension and proposed delisting of its
common shares and its Senior Notes. The Company expects these
securities to be delisted from the NYSE upon approval by the
Securities and Exchange Commission.
Headquartered in Hamilton, Bermuda, Sea Containers Ltd.
(NYSE: SCRA and SCRB) -- http://www.seacontainers.com/--
provides passenger transport operations, ownership and management
of hotels and resort properties and leasing of cargo containers.
* * *
As reported in the Troubled Company Reporter on Aug. 15, 2006,
Standard & Poor's Ratings Services said that its ratings on Sea
Containers Ltd., including the 'CCC-' corporate credit rating,
remain on CreditWatch with negative implications. Ratings were
lowered to current levels May 1, 2006; they were initially placed
on CreditWatch with negative implications on Aug. 25, 2005.
SEMCAMS HOLDING: Moody's Assigns B1 Rating to $250MM Senior Notes
-----------------------------------------------------------------
Moody's Investors Service made these rating actions on SemGroup,
L.P.:
Assigned
* B1 rating to SemGroup, L.P.'s $250 million of 8.75% senior
unsecured add-on notes
Affirmed
* B1 rated $350 million of 8.75% senior unsecured notes due
2015;
* Ba3 corporate family rating;
* Ba2 rated $1.475 billion secured working capital borrowing
base facility;
* Ba2 rated $200 million revolving credit facility;
* Ba2 rated $150 million secured Term Loan B due 2010; and,
* Ba2 rated $175 million Canadian Term Loan.
The subsidiaries guarantee SemGroup debt and SemGroup guarantees
subsidiary debt.
The notes will fund the $85 million Dornick Hills Midstream Ltd.
acquisition, pre-fund roughly $100 million of remaining 2006
capital spending, and partially repay revolver debt. Dornick owns
a 170 mile natural gas gathering system with 2,700 horsepower of
compression plus a refrigerated lean oil processing plant.
SemGroup estimates in the range of $633 million in 2006
acquisitions and capital spending.
Moody's has not completed a midstream ratings methodology, though
its SemGroup rating rationale matches the methods and rationale
employed for the other oil and gas midstream firms Moody's rates.
SemGroup's scale, diversification, and underlying core earnings
power have a profile in the Ba rating range. This is offset by a
large minority portion of earnings generated by volatile, high
volume, thin margin, and less durable merchant and hedged trading
activity and attendant credit intensive high working capital and
margin deposit needs. The ratings also reflect acquisition and
funding risk. The volatile cash flow sources, leverage, and event
risk render a high single B rating profile.
To date, SemGroup has been a prudent acquirer while expanding its
midstream petroleum businesses and building a balanced business
portfolio for rising, falling, and seasonal petroleum markets.
However, its ratings reflect an ongoing aggressive growth plan to
capitalize on mid-stream opportunities it views are still emerging
from changing North American crude oil, refined product, and
natural gas sourcing and consumption patterns. It also considers
further international growth after acquiring the Milford Haven
(U.K.) refined products terminal and storage complex that it
leases to third parties. As well, as a private firm it is more
difficult to assume that its shareholders will be willing or able
to consistently fund acquisitions with sufficient equity funding
to support the ratings.
Specifically, SemGroup's ratings are supported
-- by increasingly large scale geographic and product
diversification across midstream asset categories, multiple
oil and natural gas producing basins, refining centers, and
marketing regions;
-- resulting gross margin protection so far across volatile
markets;
-- the advantages of regional MidContinent intensity;
-- a sound performance outlook over the next twelve months;
and,
-- moderate core leverage measured to core non-merchant
EBITDA.
The firm holds strategic MidContinent pipeline, storage, and
terminal assets; its important growing storage capacity at
Cushing, Oklahoma exposes it to rising U.S. imported crude oil
volume; and it displays sound record to date of effective hedging,
of adherence to hedge policy, and effective back office controls
in the merchant marketing and hedged trading activity. SemGroup's
access to date to private equity from sector-knowledgeable
Carlyle/Riverstone is also supportive.
The ratings are restrained by SemGroup's
-- comparatively high, though recently reducing, proportion of
volatile earnings sources from merchant activity;
-- the highly working capital intensive, credit intensive, and
market confidence sensitive nature of its merchant
activity;
-- very large liquidity requirements for margin deposits and
to fund working capital during surging oil, natural gas
liquids, refined product, and natural gas markets
(consuming virtually all cash flow after capital spending in
first half 2006); and,
-- very high balance sheet leverage.
Moody's notes that very high balance sheet leverage partly
reflects unrealized mark-to-market commodity derivative loss
deductions from equity, as well as debt funding for acquisitions
whose cash flow would reduce attendant incurred debt. Moody's
also notes that SemGroup may realize cash from declining working
capital and margin deposits, both seasonally and during sustained
falling hydrocarbon prices.
SemGroup's June 30, 2006, pro-forma balance sheet displays
$441 million in equity ($862 million before unrealized mark-to-
market derivatives losses) and $1.520 billion in debt. Debt
included $433 million in secured hedged contango inventory bank
debt, $177 million in secured bank revolver debt, a
$145.6 million term loan, a US$173 million-equivalent Canadian
term loan, and $595 million of 8.75% senior notes. We add
$97 million in capitalized operating leases and $7 million in
unfunded pension liabilities to calculate adjusted debt, rendering
Adjusted Debt/Adjusted Capital 78% (64% before unrealized mark-to-
market derivative losses).
Before extraordinary items, year ended June 30, 2006, EBITDA was
$553 million or approximately $563 million pro-forma for Dornick
Hills. Moody's estimates that approximately 61% of EBITDA was
generated by durable core activities, with the remainder from the
volatile credit intensive merchant function.
Following a series of 2005 and 2006 acquisitions and storage
expansions, SemGroup states that it believes core EBITDA of
roughly $320 million will rise to roughly $425 million in 2007.
Moody's does not grant material long term debt capacity to
SemGroup's volatile, working capital intensive, and credit-
sensitive hedged crude oil, refined product, and natural gas
trading and marketing segments. Moody's also notes that a
significant portion of SemGroup's pipeline and storage throughput
volumes are generated by its own pro-active hydrocarbon middleman
sourcing and marketing activity.
SemGroup's outlook and ratings would be vulnerable to material
acquisitions if not accompanied by ample equity funding. The
ratings would also not have supported materially higher levels of
contango borrowings beyond 2006 levels, though forward market
conditions that drove activity of that scale have moderated.
The ratings are also sensitive to SemGroup's ability to
consistently successfully market, trade, and effectively hedge its
activity through volatile spot and forward markets as well as
execute a profitable marketing business in backwardated,
transition, and contango markets.
Moody's notes that the nature of SemGroup's business and assets,
and the interests of its private equity owners, appear to make it
likely that it may go public in the form of a master limited
partnership. Heretofore, the ratings have benefited by the fact
that SemGroup is not an MLP with very high cash distributions to
unit holders.
SemGroup is headquartered in Tulsa, Oklahoma.
SEMGROUP L.P.: Fitch Rates Proposed $250 Million Sr. Notes at B+
----------------------------------------------------------------
Fitch Ratings assigned the rating of 'B+/RR3' to SemGroup, L.P.'s
proposed offering of $250 million of senior unsecured notes due
2015. The notes are an add-on to the November 2005 offering of
$350 million of 8.75% notes. Proceeds from the offering will be
used to pre-fund acquisitions and capital expenditures planned for
the fourth quarter of 2006. The company is also considering
upsizing the offering to $300 million.
In addition, Fitch affirmed these ratings with a Stable Outlook:
SemGroup, L.P.:
-- Issuer Default Rating 'B'
-- Senior unsecured notes due 2015 'B+/RR3'
SemCrude, L.P.:
-- IDR 'B'
-- Secured working capital facility due August 2010 'BB/RR1'
-- Senior secured term loan B due March 2011 'BB-/RR1'
-- Secured revolving credit facility due August 2010 'BB-/RR1'
SemCams Midstream Co.:
-- IDR 'B'
-- Senior secured term loan due March 2011 'BB-/RR1'
Despite the additional debt, the affirmation reflects Fitch's
expectations that consolidated credit ratios will remain in line
with SemGroup's current ratings as earnings should continue to
benefit from the current commodity price environment.
SemGroup's ratings are also supported by the increase in size and
scope of the company's physical asset base in recent years which
has significantly diversified the partnership's business risk and
provided a more predictable source of third-party cash flow. The
company's traditional crude oil and refined product segments own
and operate a portfolio of strategically positioned pipeline and
terminal assets, including significant storage capacity at the
Cushing, Oklahoma delivery hub.
Overall, the company's storage capacity has increased to 34
million barrels at June 30, 2006, from 13.9 million barrels at the
end of 2004. These assets should also continue to generate a
considerable level of third-party cash flow in the event SemGroup
were to significantly scale back or exit the marketing business.
The company's aggressive growth strategy, however, also comes with
some risks, notably those inherent to acquisitions -- the ability
to integrate new assets, the accuracy and thoroughness of due
diligence, the ability to analyze the markets and drivers for new
business segments, etc.
While each of SemGroup's assets is related to energy, the various
assets are often only remotely related requiring an expertise
across sectors and limiting economies of scale for some of its
operations. Given the nature of SemGroup as a private company, of
additional concern is the continued use of debt as the primary
source of funding for the company's growth strategy as equity
infusions and retained earnings have only funded a limited level
of the company's growth.
The strong earnings have, however, thus far mitigated this risk as
leverage has remained relatively constant at under 2.5x debt to
EBITDA over the recent years.
SemGroup also continues to derive a significant percentage of
its gross margin through its commodity marketing and logistics
business, which focuses on the purchase of crude oil, refined
products, natural gas liquids, and natural gas and entering into
corresponding sales transactions with third-party customers.
As part of this process, SemGroup utilizes its physical asset
base, including company owned pipelines, storage tanks, and
terminals, to capture value from changes in time, location, and
quality. Profits have grown significantly over the past few
years, driven primarily by increased capacity under the company's
working capital credit facility and favorable commodity market
conditions, especially contango conditions.
While a reversal to backwardation in crude markets appears
unlikely given current geo-political conditions, a flattening of
the futures curve could significantly reduce profits for the
company.
Fitch also continues to believe that SemGroup management has
instituted an appropriate level of emphasis on risk management,
controls, and internal procedures given the overall level of
commodity risk assumed by SemGroup in its day-to-day business
activities.
SemGroup marks to market its commodity positions on a daily basis
and has imposed conservative daily and cumulative stop-loss
limits. SemGroup's marketing activities are further governed by
the credit agreement, which restricts the partnership to
conducting covered or 'back-to-back' trades only and limits open
commodity positions to specific levels as approved by the bank
group.
The assignment of the 'B+' rating for the proposed offering
reflects the subordination of the unsecured notes to SemGroup's
outstanding secured term loans and revolving credit facilities.
Recovery prospects for the existing secured term loans and
revolver remain high due to the stronger earnings power of the
company's increased asset base. Given the mechanics of the
borrowing base, asset coverage for the working capital line will
continue to remain outstanding with the 1st lien on working
capital assets.
With its second lien on fixed assets, the working capital line
also benefits from any residual fixed asset value after the term
loan obligations are satisfied. Hence the higher rating is
assigned to the working capital line than the term loans and
revolver.
Although overall recovery prospects remain strong, the
partnership's senior unsecured notes are the most vulnerable due
to potentially reduced recovery prospects from the added unsecured
notes.
SHREEKRISHNA: Case Summary & 17 Largest Unsecured Creditors
-----------------------------------------------------------
Debtor: Shreekrishna, LLC
dba Krishna, LLC
dba Krishna-1, LLC
3206 Taylorsville Highway
Statesville, NC 28625
Bankruptcy Case No.: 06-03126
Chapter 11 Petition Date: October 3, 2006
Court: Eastern District of North Carolina (Wilson)
Judge: J. Rich Leonard
Debtor's Counsel: Trawick H. Stubbs, Jr., Esq.
Stubbs & Perdue, P.A.
P.O. Drawer 1654
New Bern, NC 28563
Tel: (252) 633-2700
Fax: (252) 633-9600
Estimated Assets: $1 Million to $10 Million
Estimated Debts: $1 Million to $10 Million
Debtor's 17 Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
------ --------------- ------------
U.S. Small Business Admin. 1st Deed of Trust on $764,619
2120 Riverfront Drive .06 acres located at Secured:
Suite 100 Kinston, NC ($1,506,000)
Little Rock, AR 72202 Senior Lien:
($1,154,212)
2nd Deed of Trust on
ground lease of property
located at East New
Bern Road
Lenoir County Tax 2006 Property Tax $8,064
P.O. Box 3289
Kinston, NC 28502
NC Department of Revenue NC Withholding and $3,450
P.O. Box 25000 Occupancy Tax
Raleigh, NC 27640
Internal Revenue Service $2,686
Insolvency I
320 Federal Place
Greensboro, NC 27402
Maintenance USA $2,087
c/o Interline Brands
801 West Bay Street
Jacksonville, FL 32204
EcoLab $2,073
Calderon Textiles $1,454
Neutron $1,034
Central Heating & Air $786
Lenoir County Tax Occupancy Tax $642
City of Kinston Occupancy Tax $642
James Llewellyn $237
Receivables Performance $134
Quick Badge & Sign Co. $38
Sandra Jenkins $13
P.P.R., LLC Unknown
World Cinema, Inc. Unknown
SILICON GRAPHICS: Must File Post-Confirmation Report by November 9
------------------------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of New York
directs Silicon Graphics, Inc., and its affiliates to file a
status report on or before Nov. 9, 2006, detailing the actions
taken, and the progress made, toward the consummation of the
confirmed Plan of Reorganization.
Succeeding post-confirmation reports will be filed every
January 15, April 15, July 15, and October 15 until a final decree
closing the Chapter 11 cases has been entered, Judge Burton R.
Lifland says.
Moreover, within 45 days following the distribution of any deposit
required by the Plan, or if no deposit was required, upon the
payment of the final distribution required by the Plan, the
Debtors will file a closing report in accordance with Rule 3022-1
of the Local Rules for the U.S. Bankruptcy Court for the Southern
District of New York, and an application for a final decree.
Judge Lifland directs the Debtors to submit the Closing Report and
application for final decree, including a final decree closing the
case, within one year from the date of the Confirmation Order.
If the Debtors fail to comply with these terms, the Clerk will
advise the Court and an order to show cause may be issued, Judge
Lifland adds.
Headquartered in Mountain View, California, Silicon Graphics, Inc.
(OTC: SGID) -- http://www.sgi.com/-- offers high-performance
computing. SGI helps customers solve their computing challenges,
whether it's sharing images to aid in brain surgery, finding oil
more efficiently, studying global climate, providing technologies
for homeland security and defense, enabling the transition from
analog to digital broadcasting, or helping enterprises manage
large data. The Debtor and 13 of its affiliates filed for chapter
11 protection on May 8, 2006 (Bankr. S.D.N.Y. Case Nos. 06-10977
through 06-10990). Gary Holtzer, Esq., and Shai Y. Waisman, Esq.,
at Weil Gotshal & Manges LLP, represent the Debtors in their
restructuring efforts. Judge Lifland confirms the Debtors' Plan
of Reorganization on Sept. 19, 2006. When the Debtors filed for
protection from their creditors, they listed total assets of
$369,416,815 and total debts of $664,268,602. (Silicon Graphics
Bankruptcy News, Issue No. 20; Bankruptcy Creditors' Service,
Inc., http://bankrupt.com/newsstand/or 215/945-7000)
SILICON GRAPHICS: Wants to Assume 107 Contracts & Fix Cure Costs
----------------------------------------------------------------
Pursuant to their confirmed Plan of Reorganization, Silicon
Graphics, Inc., and its debtor-affiliates will assume on the
effective date of the Plan, all executory contracts and unexpired
leases listed on the schedules specified in the Plan supplements.
The Debtors seek the U.S. Bankruptcy Court for the Southern
District of New York's authority to assume the 107 Contracts and
fix the amounts required to cure them.
Prepetition executory contracts and unexpired leases not listed on
the schedules, previously assumed by the Debtors, or subject to a
request for assumption, will be rejected on the Plan Effective
Date.
Gary T. Holtzer, Esq., at Weil, Gotshal, & Manges LLP, in New
York, relates that the Debtors inadvertently did not list 107
contracts on the Assumption Schedules.
Mr. Holtzer says the 107 Contracts are of benefit to the Debtors
and necessary to the operation of their businesses.
Moreover, Mr. Holtzer assures the Court that there are no defaults
under the Contracts that cannot be cured by the payment of the
proposed cure amounts. Hence, the Debtors have satisfied
Section 365(b) of the Bankruptcy Code.
A complete list of the 107 Contracts to be assumed is available
for free at http://researcharchives.com/t/s?12ee
Headquartered in Mountain View, California, Silicon Graphics, Inc.
(OTC: SGID) -- http://www.sgi.com/-- offers high-performance
computing. SGI helps customers solve their computing challenges,
whether it's sharing images to aid in brain surgery, finding oil
more efficiently, studying global climate, providing technologies
for homeland security and defense, enabling the transition from
analog to digital broadcasting, or helping enterprises manage
large data. The Debtor and 13 of its affiliates filed for chapter
11 protection on May 8, 2006 (Bankr. S.D.N.Y. Case Nos. 06-10977
through 06-10990). Gary Holtzer, Esq., and Shai Y. Waisman, Esq.,
at Weil Gotshal & Manges LLP, represent the Debtors in their
restructuring efforts. Judge Lifland confirms the Debtors' Plan
of Reorganization on Sept. 19, 2006. When the Debtors filed for
protection from their creditors, they listed total assets of
$369,416,815 and total debts of $664,268,602. (Silicon Graphics
Bankruptcy News, Issue No. 20; Bankruptcy Creditors' Service,
Inc., http://bankrupt.com/newsstand/or 215/945-7000)
SITEWORKS BUILDING: June 30 Balance Sheet Upside-Down by $512,734
-----------------------------------------------------------------
Siteworks Building & Development Co.'s balance sheet at June 30,
2006, showed total assets of $2,781,063 and total liabilities of
$3,293,794, resulting in a total stockholders' deficit of
$512,734.
The company's balance sheet at June 30, 2006, also showed strained
liquidity with $501,148 in total current assets and $585,636 total
current liabilities.
For the three months ended June 30, 2006, the company incurred a
$321,240 net loss on $222,318 of revenues, compared with an
$851,982 net loss on $0 revenue for the three months ended
June 30, 2005.
Full-text copies of the company's financial statements for the
quarter ended June 30, 2006, are available for free at:
http://researcharchives.com/t/s?12de
Headquartered in Ft. Lauderdale, Florida, SiteWorks Building &
Development Co. -- http://www.mysiteworks.net/-- engages in
general contracting, construction management, preconstruction
planning, and real estate development in South Florida.
SKAMANIA COVES: Involuntary Chapter 11 Case Summary
---------------------------------------------------
Alleged Debtor: Skamania Coves Resort
45932 SR 14
Skamania, WA 98648
Case Number: 06-42398
Involuntary Petition Date: October 4, 2006
Chapter: 11
Court: Western District of Washington (Tacoma)
Judge: Paul B. Snyder
Petitioners' Counsel: Albert N. Kennedy, Esq.
Tonkon Torp LLP
888 Southwest 5th Avenue, Suite 1600
Portland, OR 97204-2099
Tel: (503) 221-1440
Petitioners Nature of Claim Claim Amount
----------- --------------- ------------
Steve Konell Loans $82,875
3600 Southeast Industrial Way
Sandy, OR 97055
Konell Construction and Loans $280,000
Demolition Corp.
3600 Southeast Industrial Way
Sandy, OR 97055
Konell Construction Co. Inc. Loans $192,000
3600 Southeast Industrial Way
Sandy, OR 97055
SOLECTRON CORP: Moody's Assigns Loss-Given-Default Ratings
----------------------------------------------------------
In connection with Moody's Investors Service's implementation
of its new Probability-of-Default and Loss-Given-Default
rating methodology, the rating agency confirmed its B1 Corporate
Family Rating for Solectron Corp.
Additionally, Moody's revised its probability-of-default ratings
and assigned loss-given-default ratings on these loans and bond
debt obligations:
Projected
Old POD New POD LGD Loss-Given
Debt Issue Rating Rating Rating Default
---------- ------- ------- ------ ----------
$450 million 0.5%
Convertible Senior
Notes due 2034 B1 B3 LGD5 86%
$150 million 8.0%
Senior Subordinated
Notes due 2016 B3 B3 LGD6 95%
$64 million 7.97%
Subordinated
Debentures due
November 2006 B3 B3 LGD6 95%
Moody's explains that current long-term credit ratings are
opinions about expected credit loss, which incorporate both the
likelihood of default and the expected loss in the event of
default. The LGD rating methodology will disaggregate these two
key assessments in long-term ratings. The LGD rating methodology
will also enhance the consistency in Moody's notching practices
across industries and will improve the transparency and accuracy
of Moody's ratings as Moody's research has shown that credit
losses on bank loans have tended to be lower than those for
similarly rated bonds.
Probability-of-default ratings are assigned only to issuers, not
specific debt instruments, and use the standard Moody's alpha-
numeric scale. They express Moody's opinion of the likelihood
that any entity within a corporate family will default on any of
its debt obligations.
Loss-given-default assessments are assigned to individual rated
debt issues -- loans, bonds, and preferred stock. Moody's opinion
of expected loss are expressed as a percent of principal and
accrued interest at the resolution of the default, with
assessments ranging from LGD1 (loss anticipated to be 0% to 9%) to
LGD6 (loss anticipated to be 90% to 100%).
Solectron Corporation (NYSE:SLR) -- http://www.solectron.com/--
provides a full range of electronics manufacturing and supply
chain management services to the world's leading networking,
telecommunications, computing, consumer, automotive, industrial
and medical device firms. The company's industry-leading Lean Six
Sigma methodology, (Solectron Production System(TM), provides OEMs
with low cost, flexibility and quality that improves competitive
advantage. Solectron's service offerings include new product
introduction, collaborative design, materials management, product
manufacturing, product warranty repair and end-of-life support.
Based in Milpitas, California, Solectron operates in more than 20
countries on five continents and had sales from continuing
operations of $10.4 billion in fiscal 2005.
SPARTA COMMERCIAL: Posts $464,316 Net Loss in 2007 1st Fiscal Qtr.
------------------------------------------------------------------
Sparta Commercial Services, Inc., has filed its financial
statements for the 2007 first fiscal quarter ended July 31, 2006,
with the Securities and Exchange Commission.
For the three months ended July 31, 2006, the Company reported a
$464,316 net loss available to common stockholders on $191,642 of
revenues compared with a $3,048,667 net loss on $17,326 of
revenues for the same period in 2005.
At July 31, 2006, the Company's balance sheet showed $3,447,792 in
total assets, $2,615,845 in total liabilities, and $831,947 in
total stockholders' equity.
The Company's July 31 balance sheet showed strained liquidity with
$556,057 in total current assets available to pay $892,024 in
total current liabilities coming due within the next 12 months.
Full-text copies of the Company's first fiscal quarter financials
are available for free at http://ResearchArchives.com/t/s?12da
Going Concern Doubt
Russell Bedford Stefanou Mirchandani LLP in New York raised
substantial doubt about Sparta Commercial Services, Inc.'s ability
to continue as a going concern after auditing the Company's
consolidated financial statements for the years ended April 30,
2006, and 2005. The auditor pointed to the Company's recurring
operating losses.
New York-based Sparta Commercial Services, Inc. --
http://www.spartacommercial.com/-- is an internet-based
acceptance and leasing company dedicated exclusively to the
powersports industry, which includes motorcycles over 600ccs,
4-stroke all-terrain vehicles and select scooters. The Company
provides a full line of financing solutions including retail
installment sales contracts and leases, as well as related
services including GAP coverage and vehicle service contracts.
SPARTA COMMERCIAL: A.W. Adler is EVP & Principal Financial Officer
------------------------------------------------------------------
Sparta Commercial Services, Inc., has entered into an employment
agreement with Anthony W. Adler, who will serve as its Executive
Vice President. Mr. Adler also serves as the Company's principal
financial officer.
The term of Mr. Adler's employment is three years.
His initial base salary is at an annual rate of $185,000. The
base salary may be increased in the discretion of the Board of
Directors. He is also entitled to other compensation as may be
determined by the Board of Directors.
Pursuant to the employment agreement, Mr. Adler was granted stock
options to purchase up to 4 million shares of common stock,
exercisable for a period of five years from grant at $0.1914 per
share, subject to certain vesting conditions.
Mr. Adler was vested 20% of the options on Sept. 22, 2006. An
additional 20% is to be vested on the first anniversary date of
the employment agreement, another 30% is to be vested on the
second anniversary date of the employment agreement, and the
remaining 30% is to be vested on the third anniversary date of the
employment agreement.
In the event of a change of control of Sparta, the options are
vested immediately. Sparta has the first right of refusal to
purchase the option shares that Mr. Adler may seek to sell
following the termination of employment.
Mr. Adler is entitled to health insurance, short term and long
term disability insurance, retirement benefits, fringe benefits,
and other employee benefits on the same basis as is made generally
available to other employees.
Mr. Adler is entitled to four weeks of paid vacation during the
first year of employment, and five weeks per year thereafter. He
is entitled to reimbursement of reasonable business expenses
incurred by him in accordance with company policies.
The employment agreement provides for termination for cause. If
terminated for cause, or if Mr. Adler resigns, he is entitled to
accrued but unpaid base salary, reimbursable expenses and accrued
additional compensation through the date of termination.
If terminated due to disability, death, or retirement, he is
entitled to accrued but unpaid base salary through the month of
termination, a pro rata portion of any additional compensation
payable but for the termination, exercise vested stock options, a
pro rata portion of any long term incentive granted, reimbursable
expenses, and accrued additional compensation through the date of
termination.
If terminated without cause, he is entitled to base salary through
the then current employment term, accrued severance, additional
compensation payable but for the termination, reimbursable
expenses, and immediate vesting of stock options.
Mr. Adler is entitled to severance equal to eight weeks of his
base salary for his first full year of employment, plus four weeks
of his base salary for his second full year of employment, plus
five weeks of his base salary for each succeeding year of
employment, up to an aggregate of seventeen weeks of such base
salary.
New York-based Sparta Commercial Services, Inc. --
http://www.spartacommercial.com/-- is an internet-based
acceptance and leasing company dedicated exclusively to the
powersports industry, which includes motorcycles over 600ccs,
4-stroke all-terrain vehicles and select scooters. The Company
provides a full line of financing solutions including retail
installment sales contracts and leases, as well as related
services including GAP coverage and vehicle service contracts.
Going Concern Doubt
Russell Bedford Stefanou Mirchandani LLP in New York raised
substantial doubt about Sparta Commercial Services, Inc.'s ability
to continue as a going concern after auditing the Company's
consolidated financial statements for the years ended April 30,
2006, and 2005. The auditor pointed to the Company's recurring
operating losses.
SPECIALTYCHEM PRODUCTS: Can Access Cash Collateral Until Oct. 29
----------------------------------------------------------------
The Hon. Pamela Pepper of the U.S. Bankruptcy Court for the
Eastern District of Wisconsin allowed, on a final basis,
SpecialtyChem Products Corporation and ChemDesign Corporation to
use cash collateral securing payment of their indebtedness to
Wachovia Bank, National Association, and Cambridge Chemicals,
Inc., until Oct. 29, 2006.
The Debtors said that an immediate need exists for the use of the
Cash Collateral to enable them to minimize disruption to and avoid
the termination of their business operations.
The Debtors, SpecialtyChem and ChemDesign, told the Court that
they owe Wachovia and other lenders as parties to a Loan and
Security Agreement for Obligations, dated Nov. 30, 2001,
approximately $6,211,575, consisting of:
a) in the case of SpecialtyChem:
* Revolving Loans in the aggregate principal amount of
$2,407,145, and
* Term Loans in the aggregate principal amount of $674,668;
b) in the case of ChemDesign:
* Revolving Loans in the aggregate principal amount of
$871,087, and
* Term Loans in the aggregate amount of $2,258,674.
The Debtors further acknowledged that Cambridge claims a blanket
lien on all of their assets to secure a note in the approximate
principal amount of $2,000,000. Cambridge's liens and claims are
junior and subordinate to the claims, liens, and security
interests granted in favor of Wachovia.
As adequate protection, the Debtors grant Wachovia and Cambridge a
replacement lien to the same validity, extent, and priority as
their prepetition liens. The Debtors will make weekly adequate
protection payments to Wachovia during the Cash Collateral Use
Period in the amount of $15,000 per week, with payment due on
Monday of each week.
A full-text copy of the Debtor's cash collateral budget is
available for free at http://ResearchArchives.com/t/s?12dd
About ChemDesign Corporation
Headquartered in Fitchburg, Massachusetts, ChemDesign Corporation
-- http://www.chemdesigncorp.com/-- is a custom manufacturer of
various fine organic chemicals for paper products, electronics,
agricultural products and other materials. The Debtor filed for
chapter 11 protection on Aug. 27, 2006 (Bankr. E.D. Wis. Case No.
06-24729. When the Debtor filed for protection from its
creditors, it estimated assets and debts between $10 million and
$50 million.
About SpecialtyChem Products
Headquartered in Marinette, Wisconsin, SpecialtyChem Products,
Corp., manufactures various organic chemicals for paper products,
electronics, agricultural products and other materials. The
company filed for chapter 11 protection on June 12, 2006 (Bankr.
E.D. Wis. Case No. 06-23131). Christopher J. Stroebel, Esq.,
Timothy F. Nixon and Marie L. Nienhuis, Esq., at Godfrey & Kahn,
S.C., represent the Debtor in its restructuring efforts. Fort
Dearborn Partners, Inc., is the Debtor's turnaround consultant,
and gives financial advice to the Debtor. Matthew M. Beier, Esq.,
and Eliza M. Reyes, Esq., at Brennan, Steil and Basting, S.C., and
Matthew T. Gensburg, Esq., and Nancy A. Peterman, Esq., at
Greenberg Traurig, L.L.P., represent the Official Committee of
Unsecured Creditors of the Debtor. In its schedule of assets and
liabilities, the Debtor disclosed $11,394,224 in total assets and
$12,323,425 in total debts.
SPECIALTYCHEM PRODUCTS: Wants to Sell Assets as a Going Concern
---------------------------------------------------------------
SpecialtyChem Products Corporation and ChemDesign Corporation seek
authority from the U.S. Bankruptcy Court for the Eastern District
of Wisconsin to sell substantially all assets of their business
operations in Marinette, Wisconsin, as a going concern, free and
clear of all liens, claims, and encumbrances, at an auction on
Oct. 18, 2006.
Tonya Trumm, Esq., at Godfrey & Kahn, S.C., relates that since the
Debtors are unable to obtain the use of cash collateral beyond the
Oct. 29 specified period, the Debtors do not have the financial
resources or access to capital necessary to implement a prolonged
operational restructuring. Without access to capital, the Debtors
will experience difficulty in covering its fixed costs. The
Debtors have, therefore, determined to maximize the value of its
estate through the sale of assets.
Ms. Trumm tells the Court that if, prior to the Auction, the
Debtor determines to use an entity to serve as the initial bidder
on the assets, the Debtors request that it be allowed to offer the
"Stalking Horse Bidder," a break-up fee in an amount not exceeding
$200,000.
Ms. Trumm also discloses that the Debtors request the Court to
schedule the Sale Hearing for Oct. 19, 2006, and request that the
Court set Oct. 13, 2006, at 4:00 p.m. as the deadline for filing
any objection to the proposed sale of assets.
About ChemDesign Corporation
Headquartered in Fitchburg, Massachusetts, ChemDesign Corporation
-- http://www.chemdesigncorp.com/-- is a custom manufacturer of
various fine organic chemicals for paper products, electronics,
agricultural products and other materials. The Debtor filed for
chapter 11 protection on Aug. 27, 2006 (Bankr. E.D. Wis. Case No.
06-24729. When the Debtor filed for protection from its
creditors, it estimated assets and debts between $10 million and
$50 million.
About SpecialtyChem Products
Headquartered in Marinette, Wisconsin, SpecialtyChem Products,
Corp., manufactures various organic chemicals for paper products,
electronics, agricultural products and other materials. The
company filed for chapter 11 protection on June 12, 2006 (Bankr.
E.D. Wis. Case No. 06-23131). Christopher J. Stroebel, Esq.,
Timothy F. Nixon and Marie L. Nienhuis, Esq., at Godfrey & Kahn,
S.C., represent the Debtor in its restructuring efforts. Fort
Dearborn Partners, Inc., is the Debtor's turnaround consultant,
and gives financial advice to the Debtor. Matthew M. Beier, Esq.,
and Eliza M. Reyes, Esq., at Brennan, Steil and Basting, S.C., and
Matthew T. Gensburg, Esq., and Nancy A. Peterman, Esq., at
Greenberg Traurig, L.L.P., represent the Official Committee of
Unsecured Creditors of the Debtor. In its schedule of assets and
liabilities, the Debtor disclosed $11,394,224 in total assets and
$12,323,425 in total debts.
STRUCTURED ASSET: S&P Downgrades Class B-5 Loan's Rating to CCC
---------------------------------------------------------------
Standard & Poor's Ratings Services lowered its rating on class
B-5 from Structured Asset Securities Corp. Assistance Loan Trust
2003-AL2 to 'CCC' from 'B'.
At the same time, the ratings on the remaining classes were
affirmed.
The downgrade reflects continued erosion of credit support due to
adverse collateral pool performance, a high level of serious
delinquencies (90-plus days, foreclosure, and REO), and high
cumulative losses. The original credit support for class B-5 was
4.20%, while the current credit support is 1.80%.
The affirmations reflect actual and projected credit support
percentages that adequately support the current ratings.
As of the August 2006 remittance date, total delinquencies were
5.02% of the current pool balance and cumulative realized losses
were 2.56% of the original pool balance. The remaining unpaid
pool balance, as a percentage of the original balance, is
approximately 57.72%.
This transaction benefits from credit enhancement provided by
subordination.
Rating Lowered:
Structured Asset Securities Corp. Assistance Loan Trust 2003-AL2
Class To From
----- -- ----
B-5 CCC B
Ratings Affirmed:
Structured Asset Securities Corp. Assistance Loan Trust 2003-AL2
Class Rating
----- ------
A, APO, AIO AAA
B-1 AA
B-2 A
B-3 BBB
B-4 BB
SUPERVALU INC: Moody's Confirms Ba3 Corporate Family Rating
-----------------------------------------------------------
In connection with Moody's Investors Service's implementation of
its new Probability-of-Default and Loss-Given-Default rating
methodology for the U.S. and Canadian Retail sector, the rating
agency confirmed its Ba3 Corporate Family Rating for SUPERVALU
Inc.
Additionally, Moody's revised its probability-of-default ratings
and assigned loss-given-default ratings on these loans and bond
debt obligations:
Projected
Old POD New POD LGD Loss-Given
Debt Issue Rating Rating Rating Default
---------- ------- ------- ------ ----------
Sr Unsec Notes and
Debentures B2 B1 LGD4 60%
Medium Term Notes B2 B1 LGD4 60%
Ind Rev Bonds B2 B1 LGD4 60%
Sr Unsec Shelf B2 B1 LGD4 60%
Moody's explains that current long-term credit ratings are
opinions about expected credit loss, which incorporate both the
likelihood of default and the expected loss in the event of
default. The LGD rating methodology will disaggregate these two
key assessments in long-term ratings. The LGD rating methodology
will also enhance the consistency in Moody's notching practices
across industries and will improve the transparency and accuracy
of Moody's ratings as Moody's research has shown that credit
losses on bank loans have tended to be lower than those for
similarly rated bonds.
Probability-of-default ratings are assigned only to issuers, not
specific debt instruments, and use the standard Moody's
alpha-numeric scale. They express Moody's opinion of the
likelihood that any entity within a corporate family will default
on any of its debt obligations.
Loss-given-default assessments are assigned to individual rated
debt issues -- loans, bonds, and preferred stock. Moody's opinion
of expected loss are expressed as a percent of principal and
accrued interest at the resolution of the default, with
assessments ranging from LGD1 (loss anticipated to be 0% to 9%) to
LGD6 (loss anticipated to be 90% to 100%).
SUPERVALU Inc. (NYSE:SVU) -- http://www.supervalu.com/-- is one
of the largest companies in the United States grocery channel with
annual sales approaching $40 billion. SUPERVALU has approximately
2,500 retail grocery locations. Through SUPERVALU's nationwide
supply chain network, the company provides distribution and
related logistics support services to more than 5,000 grocery
retail endpoints across the country, including SUPERVALU's own
retail store network. SUPERVALU currently has approximately
200,000 employees.
SURETY CAPITAL: Earns $1.2 Million in First Quarter of 2006
-----------------------------------------------------------
Surety Capital Corp. has filed its financial statements for the
first quarter ended March 31, 2006, with the Securities and
Exchange Commission.
For the three months ended March 31, 2006, the Company reported
$1,219,000 of net income compared with a $700,000 net loss for the
three months ended March 31, 2005.
There was a credit to loan loss of $98,000 for the three months
ended March 31, 2006, as contrasted with a provision for loan
losses of $148,000 for the corresponding period in 2005.
The three-month period ended March 31, 2006, included a gain on
the sale of other real estate owned of $36,000 versus a $38,000
loss for the 2005 period. Non-interest expense declined $120,000
from 2005 to 2006 as a result of an $83,000 decrease in
professional fees and a $40,000 decrease in insurance expense.
At March 31, 2006, the Company's balance sheet showed $32,351,000
in total assets, $30,518,000 in total liabilities, and $1,833,000
in total shareholders' equity.
Going Concern Doubt
In the Company's latest Form 10KSB filed with the SEC for the year
ended Dec. 31, 2002, Weaver and Tidwell, L.L.P., in Fort Worth,
Texas, raised substantial doubt about the Company's ability to
continue as a going concern.
The auditor cited that the Company is operating under both a
Determination Letter with the Texas Department of Banking and a
Written Agreement with the Board of Governors of the Federal
Reserve Bank of Dallas, and, prior to Sept. 1, 2005, operated
under a Consent Order with the Office of the Comptroller of the
Currency.
The appropriateness of using the going concern basis is dependent
upon the Company's ability to improve profitability through
increasing marketing efforts, introducing new deposit products,
emphasizing loan growth and reducing non-interest expense.
In addition, the Company must meet the requirements of the
Determination Letter and the Written Agreement.
Full-text copies of the Company's first quarter financials are
available for free at http://ResearchArchives.com/t/s?12ea
Surety Capital Corporation is the holding company of its wholly-
owned subsidiary, Surety Bank. The Bank has full service offices
in Converse, Fort Worth, New Braunfels, San Antonio, Schertz,
Universal City, and Whitesboro, Texas.
TEKNOWLEDGE CORP: Earns $330,207 in Second Quarter Ended June 30
----------------------------------------------------------------
Teknowledge Corporation earned $330,207 of net income for the
three months ended June 30, 2006, compared with a $416,461 net
loss for the same period in 2005.
In addition, the company's total revenues for the second quarter
increased to $1,541,389 from total revenues of $962,623 for the
three months ended June 30, 2005.
At June 30, 2006, the company's balance sheet showed total assets
of $3,155,068, total liabilities of $3,105,256, and total
stockholders' equity of $49,812.
The company's balance sheet at June 30, 2006, also showed strained
liquidity with $2,904,436 in total current assets and $3,105,256
in total current liabilities.
Full-text copies of the company's financial statements for the
second quarter ended June 30, 2006, are available for free
at http://researcharchives.com/t/s?12e5
Going Concern Doubt
Burr, Pilger & Mayer LLP raised substantial doubt about
Teknowledge's ability to continue as a going concern after it
audited the Company's financial statements for the year ended
Dec. 31, 2005. The auditing firm pointed to the Company's
operating results and net capital deficiency.
About Teknowledge
Teknowledge Corporation -- http://www.teknowledge.com/-- is in
the intelligent Internet transactions business. Teknowledge's
services solutions involve processing application knowledge, and
conducting flexible and secure transactions over the Internet.
Knowledge processing enables organizations to codify their
knowledge, represent it in machine readable forms, serve it to end
users on the Internet via agents and forms, and provide value-
added application services to businesses and end-users.
TIMKEN CO: Invests Over $12 Mil. for New Tech Center in Arizona
---------------------------------------------------------------
The Timken Company is continuing to expand its capabilities for
the aerospace aftermarket with an investment of more than $12
million for a new technology center in Mesa, Arizona. The new
facility, which will include manufacturing and engineering
functions, more than doubles the capacity of Timken's previous
aftermarket operation in Gilbert, Arizona, which will be vacated
over the next several months.
The 85,000 sq. ft. manufacturing and technology center provides
critical new space for integrating Timken's specialized
engineering, manufacturing, reconditioning and service functions
for components and systems used for aviation maintenance, repair
and overhaul. Parts Manufacturer Approval from the Federal
Aviation Administration covers many of these products.
"This vertical integration will help Timken strengthen its
position as a leading provider of PMA and repair/overhauled parts
and components," said Barry Stonehouse, general manager, Timken
aerospace aftermarket solutions. "It will increase our ability to
develop innovative solutions for worldwide aviation customers
through a broader selection of complex products, integrated sub-
systems and services."
The new Timken facility brings together, in one site, all the key
capabilities to support aerospace aftermarket customers. The site
will be a global product center for the application, design and
manufacturing process engineering for aerospace aftermarket
products. The site will also house a broad range of capabilities
related to production, quality control, sales and customer
service. It also will include overhaul and repair of parts under
FAA repair station authority (FAA repair station VOTR933Y). Other
activities centered there will include the stocking and
distribution of components, transmissions and engines, as well as
helicopter airframes required to support the U.S. Foreign Military
Sales program.
The Timken facility joins a number of prominent aerospace
companies, including Boeing, Lockheed Martin and MD Helicopter,
already situated in the industrial district adjacent to Falcon
Field in Mesa.
The Timken aerospace aftermarket solutions group is a supplier of
direct replacement parts for gas turbine engines, components and
systems used in the aviation industry. With principal facilities
in Mesa, Arizona, and Los Alamitos, California, Timken continues
to expand its in-house aerospace manufacturing and repair
capabilities, while increasing the scope of its aircraft platform
support.
Headquartered in Canton, Ohio, The Timken Company (NYSE: TKR) --
http://www.timken.com/-- is a manufacturer of highly engineered
bearings and alloy steels. It also provides related components
and services such as bearing refurbishment for the aerospace,
medical, industrial and railroad industries. The Company has
operations in 27 countries and employs 27,000 employees.
* * *
The Company's 7.16% Medium-Term Notes, Series A due 2027 carry
Moody's Investors Service's Ba1 rating.
TIVO INC: EchoStar Can Continue Selling Digital Video Recorders
---------------------------------------------------------------
The Honorable William C. Bryson of the U.S. Court of Appeals for
the Federal Circuit allows EchoStar Communications Corp. and its
subsidiaries to continue selling digital video recorders while
appealing rival TiVo Inc.'s victory in a patent case.
Tivo alleges that EchoStar willfully infringed U.S. Patent No.
6,233,389, entitled "Multimedia Time Warping System," by making
and selling digital video recording devices, digital video
recording device software, and personal television services in the
United States. On April 13, 2006, the jury in the U.S. District
Court for the Eastern District of Texas suit rendered a verdict in
favor of the Company in the amount of approximately $74 million.
On Aug. 17, 2006, the District Court granted TiVo's motion for
permanent injunction to prevent EchoStar from making, using, and
selling DVRs in the U.S. The District Court also ordered EchoStar
to pay TiVo approximately $74 million in damages as awarded by the
jury, prejudgment interest at the prime rate through July 31,
2006, of approximately $5.6 million, and supplemental damages for
infringement through July 31, 2006, in the amount of approximately
$10.3 million. The District Court denied TiVo's request for
enhanced damages and attorney's fees and costs. The District
Court also denied EchoStar's request to stay the injunction
pending appeal.
The Court of Appeals temporarily stayed the District Court's
injunction on Aug. 18, 2006. The Court of Appeals said that the
temporary stay was not based on a consideration of the merits of
EchoStar's request.
Alviso, Calif.-based Tivo Inc. -- http://www.tivo.com/-- provides
technology and services for digital video recorders. The
subscription-based TiVo provides consumers a way to record, watch,
and control television. TiVo also provides a unique platform for
the television industry, including advertisers and audience
research.
At July 31, 2006, the Company's stockholders' deficit widened to
$32,104,000 from a deficit of $29,372,000 at Jan. 31, 2006.
TIVO INC: Posts $6.4MM Net Loss in 2nd Fiscal Qtr. Ended July 31
----------------------------------------------------------------
Tivo Inc. has filed its financial statements for the second fiscal
quarter ended July 31, 2006, with the Securities and Exchange
Commission.
For the three months ended July 31, 2006, the Company reported a
$6,448,000 net loss on $59,167,000 of net revenues compared with
an $892,000 net loss on $39,335,000 of net revenues for the same
period in 2005.
At July 31, 2006, the Company's balance sheet showed $131,807,000
in total assets and $163,911,000 in total liabilities, resulting
in a $32,104,000 stockholders' deficit. The Company had a
$29,372,000 deficit at Jan. 31, 2006.
Full-text copies of the Company's second fiscal quarter financials
are available for free at http://ResearchArchives.com/t/s?12f4
Alviso, Calif.-based Tivo Inc. -- http://www.tivo.com/-- provides
technology and services for digital video recorders. The
subscription-based TiVo provides consumers a way to record, watch,
and control television. TiVo also provides a unique platform for
the television industry, including advertisers and audience
research.
TRAINER WORTHAM: Moody's Reviews Caa2 Rating on $10MM Notes
-----------------------------------------------------------
Moody's Investors Service reported that it has placed on watch for
downgrade the following notes issued by Trainer Wortham First
Republic CBO II, a collateralized debt obligation issuer:
* $295,000,000 million Class A-1L Floating Rate Notes Due
April 2037
-- Previous Rating: Aaa
-- Current Rating: Aaa (on watch for possible downgrade)
* $23,000,000 million Class A-2L Floating Rate Notes Due
April 2037
-- Previous Rating: Baa2
-- Current Rating: Baa2 (on watch for possible downgrade)
* $10,000,000 million Class A-3L Floating Rate Notes Due April
2037
-- Previous Rating: Caa2
-- Current Rating: Caa2 (on watch for possible downgrade)
Moody's noted that the transaction, which closed in February 2002,
has experienced deterioration of the collateral quality of the
underlying portfolio, consisting primarily of commercial
mortgaged-backed securities, manufactured housing securities, and
residential mortgage-backed securities.
The transaction has a weighted average rating factor of 888, which
fails its covenated level of 450. It also fails the weighted
average coupon test (6.638% vs. the covenanted level of 6.641%),
the Class A Overcollateralization Ratio (99.36% vs. the covenanted
level of 102%), and the Class B Overcollateralization Ratio
(96.15% vs. the covenated level of 101.5%). Additionally, the
percentage of securities that are rated Ba1 and below by Moody's
is 13.66%, which exceeds the permitted level of 5%.
TRANS ENERGY: Acquires J.B. Dewhurst Oil & Gas Lease for $800,000
-----------------------------------------------------------------
Trans Energy, Inc., has completed the acquisition of the J.B.
Dewhurst oil and gas lease for $800,000.
The Lease consist of a 100% working interest and 87.5% net revenue
interest in seven wells located on 2200 acres in Grant District,
Wetzel County, West Virginia.
The lease was acquired from Tom O'Connell, Bay Oil Company, LLC
and Beacon Lombard Corporation. Conveyance of the lease is by
good and sufficient general warranty assignment, free and clear of
all liens and encumbrances and includes the entire working
interest, all wells, personal property, fixtures and improvements
located on the lease.
The Company disclosed that it becomes responsible for the plugging
and abandoning of the acquired wells, as necessary, and for any
reclamation of the lands after plugging and abandoning operations
are completed. All plugging and abandoning operations will be
done in accordance with the applicable rules and regulations of
the State of West Virginia or other jurisdictional authorities.
The Company further disclosed that upon effectiveness of the
assignment of the lease, all production, revenue, costs, expenses
and other liabilities attributable to the assigned wells occurring
before the effective time will belong to the sellers, and all
production, assets and liabilities occurring after the effective
time will belong to the Company.
A text-copy of the Assignment and Bill of Sale is available at no
charge at http://ResearchArchives.com/t/s?12e1
Trans Energy, Inc., -- http://www.transenergy.com/-- has been in
the business of production, transportation, transmission, sales
and marketing of oil and natural gas in the Appalachian and Powder
River basins since 1993. With interests in West Virginia, Ohio,
Pennsylvania, Virginia, Kentucky, New York, and Wyoming; Trans
Energy and its subsidiaries own and operate oil and gas wells, gas
transmission lines, transportation systems and well construction
equipment and services.
Going Concern Doubt
HJ & Associates, LLC, in Salt Lake City, Utah, raised substantial
doubt about Trans Energy Inc.'s ability to continue as a going
concern after auditing the Company's consolidated financial
statements for the year ended Dec. 31, 2005. The auditor pointed
to the Company's losses from operations, accumulated deficit and
working capital deficit.
TRIBUNE CO: S&P Lowers Rating on Series 2006-1 Debentures to BB+
----------------------------------------------------------------
Standard & Poor's Ratings Services lowered its ratings on the
class A and B units from the $75.795 million Structured Asset
Trust Unit Repackaging Tribune Co. Debenture Backed Series 2006-1
to 'BB+' from 'BBB-'.
Concurrently, the ratings were placed on CreditWatch with negative
implications.
The rating actions reflect the Sept. 22, 2006, lowering of the
rating on the underlying securities, the $79.795 million 7.25%
debentures due Nov. 15, 2096, issued by Tribune Co., and its
placement on CreditWatch with negative implications.
Structured Asset Trust Unit Repackaging Tribune Co. Debenture
Backed Series 2006-1 is a swap-independent synthetic transaction
that is weak-linked to the underlying collateral, the
$79.795 million Tribune Co. 7.25% debentures.
VESTA INSURANCE: Bankruptcy Administrator Amends Creditors' Panel
-----------------------------------------------------------------
The Bankruptcy Administrator for the Northern District of Alabama
has amended the membership of the Official Committee of Unsecured
Creditors of Vesta Insurance Group, Inc. The Hon. Thomas B.
Bennett of the U.S. Bankruptcy Court for the Northern District of
Alabama ratified the amendment.
Costa Brava Partnership III, LP, is no longer a member of the
Vesta Creditors' Committee. The panel is now composed of four
unsecured creditors:
(1) The Cahaba Group, LLC
Attn: Ken E. Adkisson
1200 Corporate Dr., Suite 250
Birmingham, AL 35242
Telephone: (205) 991-9300
(2) Sterne, Agee & Leach, Inc.
Attn: Ryan C. Medo
800 Shades Creek Parkway, Suite 700
Birmingham, AL 35209
Telephone: (205) 949-3500
(3) Wilmington Trust Company
Attn: James McGinley
520 Madison Avenue, 33rd Floor
New York, NY 10022
Telephone: (212) 415-0522
(4) Wyatt R. Haskell
2964 Cherokee Road
Birmingham, AL 35223
Telephone: (205) 254-1415
About Vesta Insurance
Headquartered in Birmingham, Alabama, Vesta Insurance Group, Inc.
(Other OTC: VTAI.PK) -- http://www.vesta.com/-- is a holding
company for a group of insurance companies that primarily offer
property insurance in targeted states.
Wyatt R. Haskell, Luther S. Pate, UV, and Costa Brava Partnership
III, L.P., filed an involuntary chapter 7 petition against the
Company on July 18, 2006 (Bankr. N.D. Ala. Case No. 06-02517).
The case was converted to a voluntary chapter 11 case on Aug. 8,
2006 (Bankr. N.D. Ala. Case No. 06-02517). Eric W. Anderson,
Esq., at Parker Hudson Rainer & Dobbs, LLP, represents the Debtor.
R. Scott Williams, Esq., at Haskell Slaughter Young & Rediker,
LLC, represents the petitioning creditors. In its schedules of
assets and liabilities, Vesta listed $14,919,938 in total assets
and $214,278,847 in total liabilities.
J. Gordon Gaines, Inc., is a Vesta Insurance-owned unit that
manages the company's numerous insurance subsidiaries and employs
the headquarters workers. The Company filed for chapter 11
protection on Aug. 7, 2006 (Bankr. N.D. Ala. Case No. 06-02808).
Eric W. Anderson, Esq., at Parker Hudson Rainer & Dobbs, LLP,
represent the Debtor in its restructuring efforts. In its
schedules of assets and liabilities, Gaines listed $19,818,094 in
total assets and $16,046,237 in total liabilities.
On Aug. 1, 2006, the District Court of Travis County, Texas
entered the Order appointing the Texas Commissioner of Insurance
as Liquidator of Vesta Insurance's Texas-domiciled subsidiaries:
Vesta Fire Insurance Corporation; The Shelby Insurance Company;
Shelby Casualty Insurance Corporation; Texas Select Lloyds
Insurance Company; and Select Insurance Services, Inc. (Vesta
Bankruptcy News, Issue No. 5; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000).
VESTA INSURANCE: Administrator Appoints Gaines Creditors' Panel
---------------------------------------------------------------
The Bankruptcy Administrator for the Northern District of Alabama
has appointed four unsecured creditors, who were selected from
the 20 largest unsecured creditors, willing to serve on the
Official Committee of Unsecured Creditors in J. Gordon Gaines,
Inc.'s Chapter 11 case:
(1) Zavala & Larson
Attn: Tom Zavala
821 Ravine Rd.
Signal Mountain, TN 37377
Telephone: (423) 886-6159
(2) The Cahaba Group, LLC
Attn: Ken E. Adkisson
1200 Corporate Dr., Suite 250
Birmingham, AL 35242
Telephone: (205) 991-9300
(3) Reliable Reports of Texas, Inc.
d/b/a Reliable Reports, Inc.
Attn: James L. Wolfe
1111 Briarcrest Drive, Suite 300
Bryan, TX 77802
Telephone: (979) 776-1111
(4) Aviation Services Group, Inc.
Attn: Robert E. Kent
4243 East Lake Blvd.
Birmingham, AL 35217
Telephone: (205) 849-3848
The Hon. Thomas B. Bennett of the U.S. Bankruptcy Court for the
Northern District of Alabama ratified the committee appointment.
About Vesta Insurance
Headquartered in Birmingham, Alabama, Vesta Insurance Group, Inc.
(Other OTC: VTAI.PK) -- http://www.vesta.com/-- is a holding
company for a group of insurance companies that primarily offer
property insurance in targeted states.
Wyatt R. Haskell, Luther S. Pate, UV, and Costa Brava Partnership
III, L.P., filed an involuntary chapter 7 petition against the
Company on July 18, 2006 (Bankr. N.D. Ala. Case No. 06-02517).
The case was converted to a voluntary chapter 11 case on Aug. 8,
2006 (Bankr. N.D. Ala. Case No. 06-02517). Eric W. Anderson,
Esq., at Parker Hudson Rainer & Dobbs, LLP, represents the Debtor.
R. Scott Williams, Esq., at Haskell Slaughter Young & Rediker,
LLC, represents the petitioning creditors. In its schedules of
assets and liabilities, Vesta listed $14,919,938 in total assets
and $214,278,847 in total liabilities.
J. Gordon Gaines, Inc., is a Vesta Insurance-owned unit that
manages the company's numerous insurance subsidiaries and employs
the headquarters workers. The Company filed for chapter 11
protection on Aug. 7, 2006 (Bankr. N.D. Ala. Case No. 06-02808).
Eric W. Anderson, Esq., at Parker Hudson Rainer & Dobbs, LLP,
represent the Debtor in its restructuring efforts. In its
schedules of assets and liabilities, Gaines listed $19,818,094 in
total assets and $16,046,237 in total liabilities.
On Aug. 1, 2006, the District Court of Travis County, Texas
entered the Order appointing the Texas Commissioner of Insurance
as Liquidator of Vesta Insurance's Texas-domiciled subsidiaries:
Vesta Fire Insurance Corporation; The Shelby Insurance Company;
Shelby Casualty Insurance Corporation; Texas Select Lloyds
Insurance Company; and Select Insurance Services, Inc. (Vesta
Bankruptcy News, Issue No. 5; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000).
VIASYSTEMS INC: Moody's Assigns Loss-Given-Default Rating
---------------------------------------------------------
In connection with Moody's Investors Service's implementation
of its new Probability-of-Default and Loss-Given-Default
rating methodology, the rating agency confirmed its B3 Corporate
Family Rating for Viasystems Inc. and upgraded its Caa2 rating on
the company's $200 million Senior Subordinated Notes to Caa1.
Moody's assigned those debentures an LGD5 rating suggesting
noteholders will experience a 78% loss in case of default.
Moody's explains that current long-term credit ratings are
opinions about expected credit loss, which incorporate both the
likelihood of default and the expected loss in the event of
default. The LGD rating methodology will disaggregate these two
key assessments in long-term ratings. The LGD rating methodology
will also enhance the consistency in Moody's notching practices
across industries and will improve the transparency and accuracy
of Moody's ratings as Moody's research has shown that credit
losses on bank loans have tended to be lower than those for
similarly rated bonds.
Probability-of-default ratings are assigned only to issuers, not
specific debt instruments, and use the standard Moody's alpha-
numeric scale. They express Moody's opinion of the likelihood
that any entity within a corporate family will default on any of
its debt obligations.
Loss-given-default assessments are assigned to individual rated
debt issues -- loans, bonds, and preferred stock. Moody's opinion
of expected loss are expressed as a percent of principal and
accrued interest at the resolution of the default, with
assessments ranging from LGD1 (loss anticipated to be 0% to 9%) to
LGD6 (loss anticipated to be 90% to 100%).
Headquartered in St. Louis, Missouri, Viasystems Inc. --
http://www.viasystems.com/-- a subsidiary of Viasystems Group
Inc., provides electronics manufacturing services to original
equipment manufacturers, primarily in the telecommunications,
networking, automotive, consumer, industrial and computer
industries.
WARD PRODUCTS: Files Schedules of Assets and Liabilities
--------------------------------------------------------
Ward Products, LLC, delivered its schedules of assets and
liabilities to the U.S. Bankruptcy Court for the Eastern District
of Michigan in Detroit, disclosing:
Name of Schedule Assets Liabilities
---------------- ------ -----------
A. Real Property
B. Personal Property $11,165,758.70
C. Property Claimed
as Exempt
D. Creditors Holding
Secured Claims $7,355,916.20
E. Creditors Holding
Unsecured Priority Claims $372,392.76
F. Creditors Holding
Unsecured Nonpriority
Claims $21,857,844.48
-------------- --------------
Total $81,489,758.70 $29,586,153.44
A full-text copy of the Company's schedules is available for free
at http://ResearchArchives.com/t/s?12f2
Headquarted in Royal Oak, Michigan, Ward Products, L.L.C.,
manufactures receiving antennas. The Company filed for chapter
11 protection on Aug. 7, 2006 (Bankr. E.D. Mich. Case No.
06-50527). Jay L. Welford, Esq., Judith Greenstone Miller,
Esq., Paige E. Barr, Esq., and Richard E. Kruger, Esq., at Jaffe
Franklin Heuer & Weis, P.C., and Mark E. Freedlander, Esq., at
McGuireWoods, L.L.P, represent the Debtor. Christopher J.
Battaglia, Esq., at Halperin Battaglia Raicht, LLP, and Andrew
Kochanowski, Esq, at Sommers & Schwartz, P.C., represent the
Official Committee of Unsecured Creditors. When the Debtor filed
for protection from its creditors, it estimated assets and debts
between $10 million and $50 million.
WESTERN MEDICAL: Files Schedules of Assets and Liabilities
----------------------------------------------------------
Western Medical Inc. delivered its schedules of assets and
liabilities to the U.S. Bankruptcy Court for the District of
Arizona, disclosing:
Name of Schedule Assets Liabilities
---------------- ------ -----------
A. Real Property
B. Personal Property $14,879,547.29
C. Property Claimed
as Exempt
D. Creditors Holding $15,965,193.06
Secured Claims
E. Creditors Holding 993,996.15
Unsecured Priority Claims
F. Creditors Holding $3,572,034.10
Unsecured Nonpriority
Claims
-------------- --------------
Total $14,879,547.29 $20,531,223.31
Headquartered in Phoenix, Arizona, Western Medical, Inc.
-- http://www.westernmedicalinc.net/-- sells and distributes
medical and hospital equipment. The company filed for chapter 11
protection on June 15, 2006 (Bankr. D. Ariz. Case No. 06-01784).
Brenda K. Martin, Esq., at Osborn Maledon, P.A., represents the
Debtor. Pachulski Stang Ziehl Jones and Weintraub LLP, represents
the Official Committee of Unsecured Creditors. When the Debtor
filed for protection from its creditors, it estimated assets
between $1 million to $10 million and debts between $10 million
and $50 million.
WIDEOPENWEST FINANCE: S&P Rates $150 Mil. 2nd-Lien Loan at CCC+
---------------------------------------------------------------
Standard & Poor's Ratings Services assigned its 'B' long-term
corporate credit rating to Englewood, Colorado-based cable
overbuilder WideOpenWest Finance LLC. The outlook is stable.
In addition, Standard & Poor's assigned ratings to WOW's $840
million aggregate facilities:
* a 'B' bank loan rating was assigned to the company's $60
million senior secured first-lien revolver and $630 million
senior secured first-lien term loan; and
* a 'CCC+' bank loan rating was assigned to the company's $150
million second-lien term loan.
Currently, there is $510 million of the first-lien term loan drawn
and another $120 million will be used to fund the acquisition of
cable overbuilder Sigecom LLC.
The recovery rating for the first-lien revolver and term loan is
'3', indicating meaningful (50%-80%) recovery of principal in the
event of a payment default or bankruptcy. The second-lien term
loan is rated two notches below the corporate credit rating, based
on the significant amount of priority obligations from the first-
lien term loan and revolver.
The recovery rating for the second-lien term loan is '5',
indicating negligible (0%-25%) recovery of principal in the event
of payment default or bankruptcy.
Pro forma total debt is approximately $786 million on an operating
lease-adjusted basis.
Total proceeds of $120 million from a tack-on first-lien term loan
will be used to fund the $114 million acquisition of Sigecom,
including the repayment of about $35.9 million of Sigecom's debt,
as well as related fees and expenses.
"The ratings on WOW reflect a high degree of risk due to the
company's vulnerable market position and significant competition
from financially stronger companies, its small scale and cost
disadvantages, particularly in negotiating programming contracts,
execution risk associated with the acquisition of Sigecom, and an
aggressively leveraged financial profile," said Standard & Poor's
credit analyst Allyn Arden.
Tempering factors include:
* the company's demonstrated ability to increase market
penetration despite significant competition from incumbent
cable operators;
* its reputation for excellent customer service;
* a state-of-the-art cable plant with a two-way capability;
* better-than-average margins as a cable overbuilder; and
* attractive demographics.
WOW provides video, voice, and high-speed data services in
Detroit, Chicago, Columbus, and Cleveland, Ohio, and has about
388,000 subscribers on a pro forma basis.
WINN-DIXIE: Retirees Committee Supports Reorganization Plan
-----------------------------------------------------------
The Ad Hoc Committee of Winn-Dixie Retirees, who participated in
the negotiation of the settlement of the substantive consolidation
issues, asks the U.S. Bankruptcy Court for the Middle District of
Florida to confirm Winn-Dixie Stores, Inc., and its debtor-
affiliates' proposed Joint Plan of Reorganization.
According to the Retirees Committee, the Plan represents a good
faith effort on the Debtors' part to deal with their creditors in
the most equitable means possible while maintaining the viability
of the various companies.
In the Retirees Committee's opinion, the Plan fully complies with
the requirements of Section 1129 of the Bankruptcy Code and
represents the best opportunity for the Debtors' successful
reorganization.
Headquartered in Jacksonville, Florida, Winn-Dixie Stores, Inc.
-- http://www.winn-dixie.com/-- is one of the nation's largest
food retailers. The Company operates 527 stores in Florida,
Alabama, Louisiana, Georgia, and Mississippi. The Company,
along with 23 of its U.S. subsidiaries, filed for chapter 11
protection on Feb. 21, 2005 (Bankr. S.D.N.Y. Case No. 05-11063,
transferred Apr. 14, 2005, to Bankr. M.D. Fla. Case Nos.
05-03817 through 05-03840). D.J. Baker, Esq., at Skadden
Arps Slate Meagher & Flom LLP, and Sarah Robinson Borders,
Esq., and Brian C. Walsh, Esq., at King & Spalding LLP,
represent the Debtors in their restructuring efforts.
Paul P. Huffard at The Blackstone Group, LP, gives
financial advisory services to the Debtors. Dennis F. Dunne,
Esq., at Milbank, Tweed, Hadley & McCloy, LLP, and John B.
Macdonald, Esq., at Akerman Senterfitt give legal advice to the
Official Committee of Unsecured Creditors. Houlihan Lokey &
Zukin Capital gives financial advisory services to the
Committee. When the Debtors filed for protection from their
creditors, they listed $2,235,557,000 in total assets and
$1,870,785,000 in total debts. (Winn-Dixie Bankruptcy News,
Issue No. 54; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000).
WINN-DIXIE: Ct. Disallows 499 Duplicative Claims Totaling $2.4BB
----------------------------------------------------------------
The Honorable Jerry A. funk of the U.S. Bankruptcy Court for the
Middle District of Florida sustains Winn-Dixie Stores, Inc., and
its debtor-affiliates' objection to 499 claims, aggregating
$2,485,261,208.
Judge Funk disallows the claims in their entirety, contingent upon
the (i) confirmation and effectiveness of the Debtors' Joint Plan
of Reorganization and (ii) substantive consolidation of the
Debtors' estates as provided in the Plan.
Liberty Mutual Insurance Company withdraws Claim Nos. 10276
through 10281.
Florida Crystals Food Corporation's claim is allowed as an
unsecured non-priority claim for $18,096.
Judge Funk notes that if the Plan is not confirmed or does not
become effective, the Court Order will not prejudice the position
of either the claimants or the Debtors with respect to the issue
of which of the several Debtors named as obligor on the claims is
the actual obligor for the alleged liability.
Judge Funk also rules that the Court order is without prejudice
to the Debtors' right to further object to the surviving claims
or pursue any potential avoidance action against any of the
claimants.
Florida Crystals' Response
Florida Crystals Food Corporation stated that it filed an
unsecured proof of claim for $18,096 against Winn-Dixie Stores,
Inc.; Winn-Dixie Procurement, Inc.; and Winn-Dixie Logistics,
Inc.
Florida Crystals did not object to the Debtors' request to
expunge its duplicate claims under the conditions set forth in
their Omnibus Objection, but it objected to the Debtors' attempt
to reserve their rights to further object to the surviving claim.
Gene B. Tarr, Esq., at Blanco Tackabery Combs & Matamoros PA, in
Winston-Salem, North Carolina, asserted that Florida Crystals
should not be required to face the prospect of incurring
unnecessary expenses if the Debtors unilaterally decide to object
to Florida's claim at a later date.
Florida Crystals asked the Court to deny the Debtors' purported
reservation of rights to object to Claim No. 12863 on any other
basis.
Background
The Debtors had identified 505 claims that appear to be
duplicative of other claims filed against them.
According to James H. Post, Esq., at Smith Hulsey & Busey, in
Jacksonville, Florida, the Debtors have reviewed each of the
Duplicate Different Debtor Claims and have determined that the
claims are in effect multiple claims against the estates for the
same liability.
The Duplicate Different Debtor Claims, aggregating
$2,731,959,914, include:
Remaining Duplicate Claims
Claimant Claim No. To Be Disallowed
-------- --------- ----------------
Acadiana Bottling Co. 8200 8196 to 8199,
8201 to 8203
Acco Brands, Inc. 918 897 to 917,
919 to 920
Accurate Inventory & 10319 10318, 10320,
Calculating 10321
Ace American Insurance Co. 12670 12671 to 12693
Allen Beverages Inc. 8314 8315 to 8321
American Leak Detection 317 2730
Bemis Company, Inc. 1069 1070
Ben-Arnold Sunbelt Beverage
Co. of South Carolina LP 5989 5991 to 6012
Beverage South Inc. 11361 11360, 11362, 11363
Blue Moon Licensing Inc. 9738 9739, 9740
Blue Rhino Corporation 11068 11067, 11069
Buffalo Rock Company 9719 9715 to 9718,
9720 to 9722
Cagle's, Inc. 9944 9564
Cal-Maine Foods, Inc. 9424 9423
Campbell Soup Company 8066 7942 to 7945,
8063 to 8065
Certified Foods Corp. 7825 7824
Clorox Sales Company 11268 11266, 11267,
11269 to 11273
Cobb Electric Membership 574 2832
Cole's Quality Foods, Inc. 4426 4424, 4425
Crown Cork & Seal USA, Inc. 8509 8508
A list of the Duplicate Different Debtor Claims is available free
of charge at http://ResearchArchives.com/t/s?12e7
The Remaining Claims will survive subject to the Debtors' further
objections on any other grounds and their later allowance or
disallowance by the Court.
The Debtors reserved their rights with respect to potential
preference and avoidance actions under Chapter 5 of the Bankruptcy
Code against any claimant.
Headquartered in Jacksonville, Florida, Winn-Dixie Stores, Inc.
-- http://www.winn-dixie.com/-- is one of the nation's largest
food retailers. The Company operates 527 stores in Florida,
Alabama, Louisiana, Georgia, and Mississippi. The Company,
along with 23 of its U.S. subsidiaries, filed for chapter 11
protection on Feb. 21, 2005 (Bankr. S.D.N.Y. Case No. 05-11063,
transferred Apr. 14, 2005, to Bankr. M.D. Fla. Case Nos.
05-03817 through 05-03840). D.J. Baker, Esq., at Skadden
Arps Slate Meagher & Flom LLP, and Sarah Robinson Borders,
Esq., and Brian C. Walsh, Esq., at King & Spalding LLP,
represent the Debtors in their restructuring efforts.
Paul P. Huffard at The Blackstone Group, LP, gives
financial advisory services to the Debtors. Dennis F. Dunne,
Esq., at Milbank, Tweed, Hadley & McCloy, LLP, and John B.
Macdonald, Esq., at Akerman Senterfitt give legal advice to the
Official Committee of Unsecured Creditors. Houlihan Lokey &
Zukin Capital gives financial advisory services to the
Committee. When the Debtors filed for protection from their
creditors, they listed $2,235,557,000 in total assets and
$1,870,785,000 in total debts. (Winn-Dixie Bankruptcy News,
Issue No. 54; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000).
WINN-DIXIE: Duval County Wants Claims Objection Overruled
---------------------------------------------------------
The Duval County Tax Collector and the Duval County Property
Appraiser ask the U.S. Bankruptcy Court for the Middle District of
Florida to overrule Winn-Dixie Stores, Inc., and its debtor-
affiliates' objection to Claim No. 12566 and deny the Debtors'
request for tax liability determination.
The Duval County Tax Collector disagrees with the Debtors'
proposed reduction of the claim amount from $6,448,549 to
$5,206,101.
Richard R. Thames, Esq., at Stutsman Thames & Markey P.A., in
Jacksonville, Florida, says that the Debtors' tangible personal
property tax returns constitute an admission against their own
interest. Thus, the Debtors are estopped from challenging the
assessments based on their own valuations.
Mr. Thames points out that the Debtors did not challenge the tax
assessments within the time limit prescribed by state law,
therefore they are deemed to have waived their right to challenge
the tax assessments.
Moreover, the Tax Injunction Act and Section 362(b)(18) of the
Bankruptcy Code preclude the Court from enjoining or interfering
with the assessment of state ad valorem property taxes,
Mr. Thames contends.
Mr. Thames also states that given the market risks associated
with the Debtors' current financial condition, the 18% interest
rate cannot be shown to be so disproportionate to current
interest rates to constitute a penalty.
Headquartered in Jacksonville, Florida, Winn-Dixie Stores, Inc.
-- http://www.winn-dixie.com/-- is one of the nation's largest
food retailers. The Company operates 527 stores in Florida,
Alabama, Louisiana, Georgia, and Mississippi. The Company,
along with 23 of its U.S. subsidiaries, filed for chapter 11
protection on Feb. 21, 2005 (Bankr. S.D.N.Y. Case No. 05-11063,
transferred Apr. 14, 2005, to Bankr. M.D. Fla. Case Nos.
05-03817 through 05-03840). D.J. Baker, Esq., at Skadden
Arps Slate Meagher & Flom LLP, and Sarah Robinson Borders,
Esq., and Brian C. Walsh, Esq., at King & Spalding LLP,
represent the Debtors in their restructuring efforts.
Paul P. Huffard at The Blackstone Group, LP, gives
financial advisory services to the Debtors. Dennis F. Dunne,
Esq., at Milbank, Tweed, Hadley & McCloy, LLP, and John B.
Macdonald, Esq., at Akerman Senterfitt give legal advice to the
Official Committee of Unsecured Creditors. Houlihan Lokey &
Zukin Capital gives financial advisory services to the
Committee. When the Debtors filed for protection from their
creditors, they listed $2,235,557,000 in total assets and
$1,870,785,000 in total debts. (Winn-Dixie Bankruptcy News,
Issue No. 54; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000).
XENONICS HOLDINGS: Posts $633,000 Net Loss in 2006 Second Quarter
-----------------------------------------------------------------
For the three months ended June 30, 2006, Xenonics Holdings, Inc.
reported a $633,000 net loss on $855,000 of revenues, compared
with $23,000 of net income earned on $3,075,000 of revenues for
the three months ended June 30, 2005.
The company's balance sheet at June 30, 2006, showed total assets
of $1,891,000, total liabilities of $1,036,000, and total
shareholders' equity of $855,000.
Full-text copies of the company's financial statements for the
quarter ended June 30, 2006, are available for free
at http://researcharchives.com/t/s?12e3
Going Concern Doubt
As reported in the Troubled Company Reporter on Jan. 20, 2006,
Eisner LLP expressed substantial doubt about Xenonics Holdings,
Inc.'s ability to continue as a going concern after it audited the
Company's financial statements for the years ended Sept. 30, 2005
and 2004. The auditing firm pointed to the Company's net loss and
accumulated deficit at Sept. 30, 2005.
Xenonics Holdings Inc. through its subsidiary, Xenonics Inc. --
http://www.xenonics.com/-- develops and produces illumination
products for military, law enforcement, public safety, and
commercial and private sector applications.
YUKOS OIL: Court Orders $1.6-Bln Payment of 2004 Tax Fines
----------------------------------------------------------
The Moscow Arbitration Court has ordered OAO Yukos Oil Co. to pay
RUR42 billion ($1.6 billion) in tax fines for 2004, upholding a
claim filed by the Federal Tax Service in March, RIA Novosti
reports.
The ruling also upheld a decision of the tax authorities to impose
an additional RUR108 billion ($4 billion) in taxes on Yukos for
2004.
On March 17, the Federal Tax Service claimed that Yukos owed
RUR108 billion ($ 4billion) in back taxes for 2004. On June 14, a
court ruling found the 2004 claim legitimate and declared that the
claim should be included in the list of creditors' claims against
Yukos.
According to the Russian news and information service, the debt
and interest penalty have been charged from Yukos in an extra-
judicial manner, while over RUR42 billion ($1.57 billion) in fines
will be charged via the arbitration court.
As reported in TCR-Europe on Aug. 15, the Arbitration Appeal Court
in Moscow reduced the tax regulator's claims against Yukos from
RUR353.8 billion ($13.2 billion) to RUR$311.8 billion
($11.6 billion).
Up to $16.2 billion in claims have been asserted against the
company by 20 creditors, among others:
Yuganskneftegas $4.07 billion
Federal Tax Service $11.6 billion
OAO Rosneft Oil Co. $482 million
About Yukos
Headquartered in Moscow, Yukos Oil -- http://yukos.com/-- is an
open joint stock company existing under the laws of the Russian
Federation. Yukos is involved in energy industry substantially
through its ownership of its various subsidiaries, which own or
are otherwise entitled to enjoy certain rights to oil and gas
production, refining and marketing assets.
The Company filed for Chapter 11 protection Dec. 14, 2004
(Bankr. S.D. Tex. Case No. 04-47742), but the case was dismissed
on Feb. 24, 2005, by the Hon. Letitia Z. Clark. A few days later,
the Government sold its main production unit Yugansk, to a little-
known firm Baikalfinansgroup for $9.35 billion, as payment for
$27.5 billion in tax arrears for 2000- 2003. Yugansk eventually
was bought by state-owned Rosneft, which is now claiming more than
$12 billion from Yukos.
On March 10, a 14-bank consortium led by Societe Generale filed a
bankruptcy suit in the Moscow Arbitration Court in an attempt to
recover the remainder of a $1 billion debt under outstanding loan
agreements. The banks, however, sold the claim to Rosneft,
prompting the Court to replace them with the state-owned oil
company as plaintiff.
On April 13, court-appointed external manager Eduard Rebgun filed
a chapter 15 petition in the U.S. Bankruptcy Court for the
Southern District of New York (Bankr. S.D.N.Y. Case No. 06-0775),
in an attempt to halt the sale of Yukos' 53.7% ownership interest
in Lithuanian AB Mazeikiu Nafta.
On May 26, Yukos signed a $1.49 billion Share Sale and Purchase
Agreement with PKN Orlen S.A., Poland's largest oil refiner, for
its Mazeikiu ownership stake. The move was made a day after the
Manhattan Court lifted an order barring Yukos from selling its
controlling stake in the Lithuanian oil refinery.
On Aug. 1, the Hon. Pavel Markov of the Moscow Arbitration Court
upheld creditors' vote to liquidate OAO Yukos Oil Co. and declared
what was once Russia's biggest oil firm bankrupt. The expected
court ruling paves the way for the company's liquidation and
auction.
YUKOS OIL: Rosneft Taps Banks for $20-Bln Loan to Buy Assets
------------------------------------------------------------
OAO Rosneft Oil Co. plans to borrow at least $15 billion to
purchase the assets of bankrupt OAO Yukos Oil Co., which were to
be sold at auction before August 2007, Kommersant Daily reports.
Rosneft has reportedly approached its Western creditor banks,
which include Deutsche Bank, to organize between $15 million and
$20 billion in loans.
Harry Wilson and Nick Clark of Financial News Online reports that
five international banks are preparing to fund the loan to
Rosneft. According to Russian market sources, the banks, which
lent $7.5 billion to Rosneft in 2005, include:
-- ABN Amro
-- Barclays Capital
-- Dresdner Kleinwort
-- JP Morgan
-- Morgan Stanley
Financial News cited an unidentified source as saying that Rosneft
was likely to be looking for about eight banks to back the loan.
A spokesman for Deutsche Bank confirmed to Dow Jones Newswires
that the bank "is involved with Rosneft" but declined to confirm
the size of the facility and whether it had receive a firm mandate
for a loan, MarketWatch relates.
Rosneft First Vice President Nikolai Borisenko confirmed its
interest in Yukos assets saying that the company will have to
resort to loans for the acquisition. According to Kommersant,
MDM-bank analyst Andrey Gromadin estimated the assets to be worth
about $20-$23 billion; Alfa-bank analyst Konstantin Batunin
estimates them at around $15 billion.
Rosneft Vice President Peter O'Brian said the company might buy
some assets from Yukos to optimize the balance between oil
refining and production. He said that the company had no plans to
purchase assets abroad, but indicated plans to swap some assets
for oil refineries in China. The company, however, was ready to
consider purchasing oil assets in the Bashkortostan Republic if
the moves proved to be economically expedient.
Some 20 creditors asserted up to $16.2 billion in claims against
Yukos, including, among others:
Yuganskneftegas
(now owned by Rosneft) $4.07 billion
Federal Tax Service $11.6 billion
OAO Rosneft Oil Co. $482 million
Stock Flotation
On July 14, Rosneft closed the books on Russia's biggest flotation
and the world's fifth largest, placing 1.4 billion ordinary shares
in Moscow and London worth $10.4 billion.
Mr. O'Brian said the company has no plans to float additional
shares.
Rosneft expects to use proceeds from the IPO to pay off a
$7.5 billion syndicated bank loan that helped finance the state
buyback of a 10.7% stake in Gazprom.
Rosneft president Sergei Bogdanchikov, who acquired 0.0013% of
shares worth about $1 million, previously disclosed that three
strategic investors had subscribed for $3 billion of the company's
shares. He also cited subscriptions from, among others:
Investors Subscriptions
--------- -------------
BP Plc $1 billion
Petronas $1.5 billion
China National Petroleum Corp. $500 million
Private Russian investors $755 million
Rosneft top executives acquired a 0.0179% stake in the company
with Hans-Jorg Rudloff, a member of the board of directors,
acquiring the largest stake at 0.0071%.
Headquartered in Moscow, Russia, OAO Rosneft --
http://www.rosneft.ru/eng-- produces and markets petroleum
products. The Company explores for, extracts, refines and markets
oil and natural gas. Rosneft produces oil in Western Siberia,
Sakhalin, the North Caucasus and the Arctic regions of Russia.
About Yukos
Headquartered in Moscow, Yukos Oil -- http://yukos.com/-- is an
open joint stock company existing under the laws of the Russian
Federation. Yukos is involved in energy industry substantially
through its ownership of its various subsidiaries, which own or
are otherwise entitled to enjoy certain rights to oil and gas
production, refining and marketing assets.
The Company filed for Chapter 11 protection Dec. 14, 2004
(Bankr. S.D. Tex. Case No. 04-47742), but the case was dismissed
on Feb. 24, 2005, by the Hon. Letitia Z. Clark. A few days later,
the Government sold its main production unit Yugansk, to a little-
known firm Baikalfinansgroup for $9.35 billion, as payment for
$27.5 billion in tax arrears for 2000- 2003. Yugansk eventually
was bought by state-owned Rosneft, which is now claiming more than
$12 billion from Yukos.
On March 10, a 14-bank consortium led by Societe Generale filed a
bankruptcy suit in the Moscow Arbitration Court in an attempt to
recover the remainder of a $1 billion debt under outstanding loan
agreements. The banks, however, sold the claim to Rosneft,
prompting the Court to replace them with the state-owned oil
company as plaintiff.
On April 13, court-appointed external manager Eduard Rebgun filed
a chapter 15 petition in the U.S. Bankruptcy Court for the
Southern District of New York (Bankr. S.D.N.Y. Case No. 06-0775),
in an attempt to halt the sale of Yukos' 53.7% ownership interest
in Lithuanian AB Mazeikiu Nafta.
On May 26, Yukos signed a $1.49 billion Share Sale and Purchase
Agreement with PKN Orlen S.A., Poland's largest oil refiner, for
its Mazeikiu ownership stake. The move was made a day after the
Manhattan Court lifted an order barring Yukos from selling its
controlling stake in the Lithuanian oil refinery.
On Aug. 1, the Hon. Pavel Markov of the Moscow Arbitration Court
upheld creditors' vote to liquidate OAO Yukos Oil Co. and declared
what was once Russia's biggest oil firm bankrupt. The expected
court ruling paves the way for the company's liquidation and
auction.
ZIPPITY HOMES: Case Summary & 12 Largest Unsecured Creditors
------------------------------------------------------------
Debtor: Zippity Homes Inc.
85 Northeast Loop $10, Suite 218
San Antonio, TX 78216
Bankruptcy Case No.: 06-51962
Type of Business: The Debtor is a privately owned real estate
investment company. The Debtor locates homes in
any market suitable for investment, fund their
purchase, renovate the homes, and hold their
properties for long or short term equity build.
See http://www.mprops.com/
Chapter 11 Petition Date: October 2, 2006
Court: Western District of Texas (San Antonio)
Judge: Ronald B. King
Debtor's Counsel: Steven G. Cennamo, Esq.
2929 Mossrock, Suite 117
San Antonio, TX 78230
Tel: (210) 979-9299
Fax: (210) 342-3633
Estimated Assets: $1 Million to $10 Million
Estimated Debts: $1 Million to $10 Million
Debtor's 12 Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
------ --------------- ------------
VCH Funding Inc. Purchase Money $3,598,000
c/o Stewart Alexander
7718 Broadway
San Antonio, TX 78209
Craig Gill Mechanics Lien $80,000
3607 Sunny Dell Drive
San Antonio, TX 78253
Vincent Dempsey Money Loaned $50,000
818 Owl Circle
Vacaville, CA 95687
Michele Salcido Money Loaned $100,000
3967 Falcon Street
San Diego, CA 92103
Money Loaned $50,000
Equity Trust, FBO Daniel F. Ebert Money Loaned $50,000
24808 Shamrock Trail
San Antonio, TX 78258
Entrust IRA-Fred Webb Money Loaned $50,000
Craig Gill Mechanics Lien $38,705
Mechanics Lien $37,744
Mechanics Lien $38,824
Mayte Gallardo Loan $35,000
Loan $27,000
Ever Gersich Loan $25,900
Philip Lang Loan $50,000
David Pittenger Loan $50,000
Vincent Dempsey Loan $20,000
* Focus Management's Ken Naglewski Named as CIRA Professional
-------------------------------------------------------------
The Association of Insolvency and Restructuring Advisors, recently
awarded Ken Naglewski, Focus Management Group's Managing Director,
the designation of Certified Insolvency and Restructuring Advisor.
To receive designation as a CIRA, the AIRA requires that
professionals demonstrate a proven track record of experience in
business turnaround, restructuring and bankruptcy matters.
Naglewski specializes in advising both debtors and secured
creditors of insolvent companies in the role of restructuring and
financial advisor and expert witness on bankruptcy issues. Some
of his recent Focus bankruptcy engagements include serving as
financial and restructuring advisor to The Glass Group, Inc., DT
Industries, Inc., PSA Quality Systems, Inc and Sylvest Farms, Inc.
He also served as financial advisor to the secured lenders in Oris
Automotive, Inc.
Prior to joining Focus Management Group, Naglewski served as Chief
Restructuring Officer of DESA International, Inc. during its
recapitalization efforts which culminated in a Chapter 11
Bankruptcy filing and subsequent 363 sale to a private equity
investor. Naglewski also served as Executive Vice President and
Chief Operating Officer of State Industries, Inc., where he led
its operational and strategic turnaround and spearheaded the sale
of the business.
Naglewski's recent published articles on bankruptcy-related
matters cover critical vendor issues, stalking horse
considerations in 363 sales and dealing with offshore vendors. A
graduate of Roosevelt University with a B.S. in Business
Administration, Naglewski is a Certified Public Accountant and a
Certified Turnaround Professional.
He can be reached at (615) 491-7331 or k.naglewski@focusmg.com
About Focus Management
Focus Management Group offers nationwide capabilities in
turnaround management, business restructuring and asset recovery.
Headquartered in Tampa, FL, with offices in Atlanta, Chicago,
Greenwich, Los Angeles and Nashville, Focus Management Group
provides turn-key support to stakeholders including secured
lenders and equity sponsors. The Company provides a comprehensive
array of services including turnaround management, interim
management, operational analysis and process improvement, case
management services, bank and creditor negotiation, asset
recovery, recapitalization services and special situation
investment banking for distressed companies.
Focus Management Group has significant expertise in the insolvency
arena. FOCUS Professionals have served debtors, creditors, and
unsecured stakeholders in their efforts to accomplish the best
outcome.
Over the past decade, Focus Management Group has successfully
assisted hundreds of clients operating in diverse industries,
guiding them to maximize performance or asset recovery. Adverse
situations are Focus Management Group's forte - finding winning
compromises in a timely manner when faced with the most
discouraging of circumstances is what separates Focus Management
Group from the competition.
* Robert Cunningham Joins Gibson Dunn in New York as Partner
------------------------------------------------------------
Robert Cunningham has joined Gibson, Dunn & Crutcher LLP's New
York office as partner and has been named a Co-Chair of the firm's
Global Finance Practice Group. Formerly Co-Chair of Jones Day's
Global Lending and Structured Finance practice, he will continue
his work on complex domestic and international financing
transactions.
"We are delighted to have Bob on board. He is an exceptional
lawyer who is highly regarded in the banking community," said Ken
Doran, Managing Partner of Gibson Dunn. "We are committed to
expanding our New York office, and Bob's arrival is a key step in
furtherance of our strategy."
"Bob's profile and stature in the finance bar are impressive,"
said Steve Shoemate, Co-Partner in Charge of the New York office.
"He has very broad experience in finance, from leveraged finance
to structured finance and restructuring work. He has extensive
experience representing both major commercial and investment
banks, hedge funds, monoline insurers and other capital providers
and a broad array of capital users, including major corporations
and private equity sponsors. His addition will broaden and
complement the firm's finance practice."
"Gibson Dunn has a broad based team of exceptional financing
lawyers," said Mr. Cunningham. "I'm very much looking forward to
joining them and contributing to the continued growth of Gibson
Dunn's global financing practice in New York."
About Robert L. Cunningham
Cunningham represents lenders, borrowers, lessors, lessees,
arrangers, sponsors, private equity investors, monoline insurers
and LBO, investment and hedge funds, and other capital users and
providers and credit enhancers in a wide variety of U.S.,
European, Asian and Latin American financing transactions.
He has extensive experience in a wide range of financing
arrangements, including secured and unsecured, multi-borrower,
multi-currency revolving credit, term loan, letter of credit and
BA facilities, first lien/second lien financings, acquisition and
bridge financings, project financings, restructurings and DIP
facilities, bankruptcy exit financings, complex structured
financings, asset monetizations and securitizations, leveraged
lease financings, and private placements.
Representative transactions include major energy, health care,
telecom, mining, steel and other specialized industry acquisition
financings. Cunningham has also done a number of first-of-their-
kind transactions, including some of the earliest investment bank
bridge acquisition financings; stranded cost regulatory
receivables securitization; and cross-border, tax-advantaged
combined minority equity interest/deconsolidation structured
financing.
Prior to joining the firm, Cunningham had served as the co-chair
of the Global Lending and Structured Finance practice at Jones
Day, where he was a partner since 1995. Before that, he was a
principal financing partner with Fried, Frank, Harris, Shriver &
Jacobson.
Fluent in French, Cunningham received his law degree in 1972 from
Columbia University where he was a Harlan Fiske Stone Scholar. He
is a former captain in the U.S. Army.
About Gibson Dunn's Global Finance Practice Group
Gibson Dunn's Global Finance Practice Group consists of 60
attorneys, in addition to a number of attorneys in complementary
practices. The group focuses on the representation of lenders,
borrowers, underwriters and issuers in a large variety of debt and
structured finance transactions, including leveraged loans, high
yield bond offerings, mezzanine, project finance, equipment
financings, restructurings and securitizations. During 2005,
Gibson Dunn handled finance transactions with an aggregate value
in excess of $89 billion.
In 2005, the firm ranked No. 2 in U.S. Convertible Offerings and
No. 5 in U.S. High Yield Corporate Debt, as issuer's legal
advisor, according to Thomson Financial. The firm also ranked No.
5 in US syndicated loans and sixth in leveraged loans, based on
number of borrower-side deals for 2005, according to Loan Pricing
Corp.
About Gibson, Dunn & Crutcher LLP
Gibson, Dunn & Crutcher LLP -- http://www.gibsondunn.com/-- is an
international law firm. Consistently ranking among the world's
top law firms in industry surveys and major publications, Gibson
Dunn is distinctively positioned in today's global marketplace
with 800 lawyers and 13 offices, including Los Angeles, New York,
Washington, D.C., San Francisco, Palo Alto, London, Paris, Munich,
Brussels, Orange County, Century City, Dallas and Denver.
* Chapter 11 Cases with Assets & Liabilities Below $1,000,000
-------------------------------------------------------------
Recent chapter 11 cases filed with assets and liabilities below
$1,000,000:
In re Amrex, Inc.
Bankr. N.D. Ga. Case No. 06-71679
Chapter 11 Petition filed September 21, 2006
See http://bankrupt.com/misc/ganb06-71679.pdf
In re Natick Diversified Rentals, Inc.
Bankr. D. Mass. Case No. 06-13394
Chapter 11 Petition filed September 27, 2006
See http://bankrupt.com/misc/mab06-13394.pdf
In re Reed V. Sallak
Bankr. S.D. Fla. Case No. 06-14826
Chapter 11 Petition filed September 27, 2006
See http://bankrupt.com/misc/flsb06-14826.pdf
In re Darbytown Road Ventures, LLC
Bankr. E.D. Va. Case No. 06-32614
Chapter 11 Petition filed September 28, 2006
See http://bankrupt.com/misc/vaeb06-32614.pdf
In re Hi Medeq, Inc.
Bankr. E.D. N.C. Case No. 06-03053
Chapter 11 Petition filed September 28, 2006
See http://bankrupt.com/misc/nceb06-03053.pdf
In re Joseph McGill
Bankr. E.D. Pa. Case No. 06-14376
Chapter 11 Petition filed September 28, 2006
See http://bankrupt.com/misc/paeb06-14376.pdf
In re Larry A. Miles
Bankr. W.D. Pa. Case No. 06-24761
Chapter 11 Petition filed September 28, 2006
See http://bankrupt.com/misc/pawb06-24761.pdf
In re Rae Belle Adams
Bankr. W.D. La. Case No. 06-80803
Chapter 11 Petition filed September 28, 2006
See http://bankrupt.com/misc/lawb06-80803.pdf
In re Riley O. Trimble, Jr.
Bankr. N.D. Ala. Case No. 06-81989
Chapter 11 Petition filed September 28, 2006
See http://bankrupt.com/misc/alnb06-81989.pdf
In re Smitty's Hardware, Inc.
Bankr. S.D. W.V. Case No. 06-20605
Chapter 11 Petition filed September 28, 2006
See http://bankrupt.com/misc/wvsb06-20605.pdf
In re Smokin Joes of Oxford Inc.
Bankr. N.D. Ala. Case No. 06-41403
Chapter 11 Petition filed September 28, 2006
See http://bankrupt.com/misc/alnb06-41403.pdf
In re Complete Drywall & Paint, LLC
Bankr. W.D. La. Case No. 06-20382
Chapter 11 Petition filed September 29, 2006
See http://bankrupt.com/misc/lawb06-20382.pdf
In re Joshua's Treehouse Inc.
Bankr. D. Conn. Case No. 06-31659
Chapter 11 Petition filed September 29, 2006
See http://bankrupt.com/misc/ctb06-31659.pdf
In re Tyrone Hospital
Bankr. W.D. Pa. Case No. 06-70759
Chapter 11 Petition filed September 29, 2006
See http://bankrupt.com/misc/pawb06-70759.pdf
In re Tyrone Medical Associates
Bankr. W.D. Pa. Case No. 06-70760
Chapter 11 Petition filed September 29, 2006
See http://bankrupt.com/misc/pawb06-70760.pdf
In re J A C H Enterprises, Inc.
Bankr. W.D. Tenn. Case No. 06-27946
Chapter 11 Petition filed October 2, 2006
See http://bankrupt.com/misc/tnwb06-27946.pdf
In re C&G Builders, Inc.
Bankr. N.D. Ind. Case No. 06-62073
Chapter 11 Petition filed October 2, 2006
See http://bankrupt.com/misc/innb06-62073.pdf
In re Dawn's Paradise, LLC
Bankr. S.D. Ga. Case No. 06-11426
Chapter 11 Petition filed October 2, 2006
See http://bankrupt.com/misc/gasb06-11426.pdf
In re Desert Grill LLC
Bankr. D. Ariz. Case No. 06-01201
Chapter 11 Petition filed October 2, 2006
See http://bankrupt.com/misc/azb06-01201.pdf
In re Glen Wayne Fountain
Bankr. S.D. Tex. Case No. 06-35208
Chapter 11 Petition filed October 2, 2006
See http://bankrupt.com/misc/txsb06-35208.pdf
In re Southwest Cartex Corporation
Bankr. S.D. Tex. Case No. 06-20608
Chapter 11 Petition filed October 2, 2006
See http://bankrupt.com/misc/txsb06-20608.pdf
In re The New United Baptist Cogic, Inc.
Bankr. N.D. Ga. Case No. 06-72449
Chapter 11 Petition filed October 2, 2006
See http://bankrupt.com/misc/ganb06-72449.pdf
In re Thomas Edison Cavin, Jr.
Bankr. W.D. Tex. Case No. 06-51949
Chapter 11 Petition filed October 2, 2006
See http://bankrupt.com/misc/txwb06-51949.pdf
In re Avionics Technologies, Inc.
Bankr. S.D. Ind. Case No. 06-06051
Chapter 11 Petition filed October 3, 2006
See http://bankrupt.com/misc/insb06-06051.pdf
In re Black Boar Farms, LLC
Bankr. N.D. Tex. Case No. 06-43420
Chapter 11 Petition filed October 3, 2006
See http://bankrupt.com/misc/txnb06-43420.pdf
In re Law Aviation, Inc.
Bankr. S.D. Ind. Case No. 06-06050
Chapter 11 Petition filed October 3, 2006
See http://bankrupt.com/misc/insb06-06050.pdf
In re The Wheel Exchange, Inc.
Bankr. E.D. N.C. Case No. 06-01572
Chapter 11 Petition filed October 3, 2006
See http://bankrupt.com/misc/nceb06-01572.pdf
In re Una Mejor Vida, LLC
Bankr. D. Ariz. Case No. 06-03192
Chapter 11 Petition filed October 3, 2006
See http://bankrupt.com/misc/azb06-03192.pdf
In re Weatherall Family Funeral Service LLC
Bankr. N.D. Tex. Case No. 06-34304
Chapter 11 Petition filed October 3, 2006
See http://bankrupt.com/misc/txnb06-34304.pdf
*********
Monday's edition of the TCR delivers a list of indicative prices
for bond issues that reportedly trade well below par. Prices are
obtained by TCR editors from a variety of outside sources during
the prior week we think are reliable. Those sources may not,
however, be complete or accurate. The Monday Bond Pricing table
is compiled on the Friday prior to publication. Prices reported
are not intended to reflect actual trades. Prices for actual
trades are probably different. Our objective is to share
information, not make markets in publicly traded securities.
Nothing in the TCR constitutes an offer or solicitation to buy or
sell any security of any kind. It is likely that some entity
affiliated with a TCR editor holds some position in the issuers'
public debt and equity securities about which we report.
Each Tuesday edition of the TCR contains a list of companies with
insolvent balance sheets whose shares trade higher than $3 per
share in public markets. At first glance, this list may look like
the definitive compilation of stocks that are ideal to sell short.
Don't be fooled. Assets, for example, reported at historical cost
net of depreciation may understate the true value of a firm's
assets. A company may establish reserves on its balance sheet for
liabilities that may never materialize. The prices at which
equity securities trade in public market are determined by more
than a balance sheet solvency test.
A list of Meetings, Conferences and Seminars appears in each
Wednesday's edition of the TCR. Submissions about insolvency-
related conferences are encouraged. Send announcements to
conferences@bankrupt.com/
On Thursdays, the TCR delivers a list of recently filed chapter 11
cases involving less than $1,000,000 in assets and liabilities
delivered to nation's bankruptcy courts. The list includes links
to freely downloadable images of these small-dollar petitions in
Acrobat PDF format.
Each Friday's edition of the TCR includes a review about a book of
interest to troubled company professionals. All titles are
available at your local bookstore or through Amazon.com. Go to
http://www.bankrupt.com/books/to order any title today.
Monthly Operating Reports are summarized in every Saturday edition
of the TCR.
For copies of court documents filed in the District of Delaware,
please contact Vito at Parcels, Inc., at 302-658-9911. For
bankruptcy documents filed in cases pending outside the District
of Delaware, contact Ken Troubh at Nationwide Research &
Consulting at 207/791-2852.
*********
S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter is a daily newsletter co-published
by Bankruptcy Creditors' Service, Inc., Fairless Hills,
Pennsylvania, USA, and Beard Group, Inc., Frederick, Maryland,
USA. Marie Therese V. Profetana, Robert Max Victor M. Quiblat II,
Shimero R. Jainga, Joel Anthony G. Lopez, Melvin C. Tabao, Rizande
B. Delos Santos, Cherry A. Soriano-Baaclo, Christian Q. Salta,
Jason A. Nieva, Lucilo M. Pinili, Jr., Tara Marie A. Martin, and
Peter A. Chapman, Editors.
Copyright 2006. All rights reserved. ISSN: 1520-9474.
This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding, electronic
re-mailing and photocopying) is strictly prohibited without prior
written permission of the publishers. Information contained
herein is obtained from sources believed to be reliable, but is
not guaranteed.
The TCR subscription rate is $725 for 6 months delivered via e-
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for the term of the initial subscription or balance thereof are
$25 each. For subscription information, contact Christopher Beard
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*** End of Transmission ***