/raid1/www/Hosts/bankrupt/TCR_Public/100119.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
Tuesday, January 19, 2010, Vol. 14, No. 18
Headlines
294 5TH AVENUE: Case Summary & 4 Largest Unsecured Creditors
ABITIBIBOWATER INC: Has Competing Bid for Closed Steilacoom Plant
ACCENTIA BIOPHARMA: May File Reorganization Plan by January 22
ADVANTA CORP: Rejects Citizens Bank Park & Lincoln Field Leases
AEGON: To Delist From Tokyo Stock Exchange
AFFILIATED MEDIA: May File for Bankruptcy as Soon as Friday
AMERICAN INT'L: Seeks to Reduce Bonuses to AIGFP Employees
AMERITYRE CORP: Intends to Delist Common Stock From Nasdaq
AMIDEE CAPITAL: Case Summary & 20 Largest Unsecured Creditors
ARCH ALUMINUM: Sun Capital Gets Court OK to Buy Company
ARTHUR FEFFERMAN: Case Summary & 10 Largest Unsecured Creditors
ASHBY ENTERPRISES: Case Summary & 20 Largest Unsecured Creditors
ATENOGENES BAEZ: Case Summary & 8 Largest Unsecured Creditors
ATLANTA APARTMENTS: Files for Chapter 11 Bankruptcy
AVENTINE RENEWABLE: Sending Plan to Creditors for Voting
AXIA INC: Has February 11 Auction for Assets
AXION INTERNATIONAL: Significant Losses Prompt Going Concern Doubt
BARE ESCENTUALS: S&P Puts 'B+' Rating on CreditWatch Positive
BKMJ PROPERTIES: Case Summary & 2 Largest Unsecured Creditors
BANKUNITED FINANCIAL: Has Exclusivity Extension Until April 19
BASHAS' INC: Wants to Toss Out Store Lease in Phoenix & El Mirage
BENDER SHIPBUILDING: Signal's $31.2-Mil. Wins Auction
BOB STEVENS: Case Summary & 3 Largest Unsecured Creditors
BROADWAY 401: To Seek Approval of Prepack Plan on March 16
BUILDERS FIRSTSOURCE: Stockholders Okay Changes in Incentive Plan
CANWEST GLOBAL: Draws Four Potential Bidders
CANWEST GLOBAL: L. Asper Opposes Early CCAA Filing for LP Units
CANWEST GLOBAL: LP Entities Have FTI as CCAA Monitor
CASCADE ACCEPTANCE: Wants Access to Bank of Marin Cash Collateral
CATHOLIC CHURCH: Committee Objects to Pension for Accused Priests
CATHOLIC CHURCH: Wilm. Wants Automatic Stay Extended to Parishes
CATHOLIC CHURCH: Wilmington Wants Removal Period Until May 17
CENTRAL METAL: Schedules Filing Deadline Moved to Feb. 2
CENTRAL METAL: Sec. 341 Creditors Meeting Set for Feb. 9
CENTRAL METAL: Taps Levene Neale as Bankruptcy Counsel
CENTRAL METAL: Taps Charles Moffitt as Chief Restructuring Officer
CHAMPION ENTERPRISES: Signs Deal to Sell to Investor Group
CHATSWORTH INDUSTRIAL: Taps Caceres & Shamash as Bankr. Counsel
CHATSWORTH INDUSTRIAL: Wants Access to Prepetition Lenders Cash
CHATSWORTH INDUSTRIAL: May File Schedules Tomorrow
CHEMTURA CORP: Gets Nod to Tap Pillsbury Winthrop as Counsel
CHESTER SPIERING: Case Summary & 6 Largest Unsecured Creditors
CHI SOUTHWEST: Voluntary Chapter 11 Case Summary
CHRYSLER LLC: Lone US Automaker to Run 60-Second Super Bowl Ad
COEUR D'ALENE: S&P Withdraws 'B-' Corporate Credit Rating
COLONIAL BANCGROUP: Seeks to Free $38 Million from FDIC Claim
CONEXANT SYSTEMS: Files Universal Self Registration Statement
DAUFUSKIE ISLAND: Resort Property Sold for $49.5 Million
DAVID HAASE: Voluntary Chapter 11 Case Summary
DCB INVESTMENT: Voluntary Chapter 11 Case Summary
DECODE GENETICS: Del. Court Approves Sale to Saga Investments
DENNY HECKER: Hid Assets From Court, Trustee's Suit Says
DUBAI WORLD: Abu Dhabi's $10-Bil. Funding Is "Half that Size"
DUDERSTADT FOUNDATION: Case Summary & 20 Largest Unsec. Creditors
EAGLEPICHER CORP: S&P Puts 'CCC+' Rating on $70 Mil. Loan
EASTMAN KODAK: Alleges Patent Infringement by Apple and RIM
EASTMAN KODAK: Bill Gates, et al., Hold 4.9% Equity Stake
EDRA BLIXSETH: Trustee Seeks to Sell "Family Compound" for $8.5MM
EL JEFE'S PROPERTIES: Case Summary & 1 Unsecured Creditor
EMISPHERE TECHNOLOGIES: McGladrey Replaces PwC as Accountants
EMRISE CORP: Short Term Forbearance Agreement Extended to Jan. 25
EQUINOX HOLDINGS: S&P Assigns 'B' Rating on $400 Mil. Notes
ERICKSON RETIREMENT: Morgan Stanley Joins Creditors Committee
ERICKSON RETIREMENT: Panel Wants Appropriate Plan Value Allocation
ERICKSON RETIREMENT: Status Conference Continued to Jan. 22
EXTERRA ENERGY: Posts $413,282 Net Loss in November 30 Quarter
FAIRPOINT COMMUNICATIONS: Great Works Gets Ally in Billing Row
FAMILY WORSHIP: Voluntary Chapter 11 Case Summary
FILI ENTERPRISES: Sends Daphne's Greek Restaurants to Chapter 11
FIRST MIDWEST: Not Placed on Rating Watch Negative by Fitch
FONTAINEBLEAU LAS VEGAS: Given Exclusivity Until March 1
FORUM NATIONAL: Amends Financials for Fiscal 2007
FRANK ANTHONY CUDA: Case Summary & 4 Largest Unsecured Creditors
FRONTERA COPPER: Receives Series 1 Notes Default Notice
GENERAL DATACOMM: Posts $5,568,000 Net Loss in Fiscal 2009
GENMAR HOLDINGS: Boat-Making Business Sales Officially Approved
GRIFFIN & SHULA: Case Summary & 20 Largest Unsecured Creditors
HACIENDA STRUCTURES: Case Summary & 3 Largest Unsecured Creditors
HAIGHTS CROSS: Asks for Court OK to Use Cash Collateral
HAIGHTS CROSS: Wants to Hire Epiq Bankruptcy as Claims Agent
HAIGHTS CROSS: Gets Lift Stay for Midwest & Coach Lawsuits
HAROLD COLE: Voluntary Chapter 11 Case Summary
HAWAIIAN TELCOM: Court OKs Kirkland's $1.13MM in Fees
HAWAIIAN TELCOM: Gets Nod for Stipulation With USAC
HAWAIIAN TELCOM: Seeks Cash Collateral Access Until Emergence
HAWKEYE RENEWABLES: US Trustee Unable to Form Creditors Committee
HAWKEYE RENEWABLES: Wants Schedules Filing Date Moved to March 22
HEARTLAND PUBLICATIONS: Bonuses for 2009 Approved
ICOP DIGITAL: Receives Non-Compliance Notice From NASDAQ
IRVINE SENSORS: Issues Shares of Common Stock to Investors
JIMMY HARDEN: Case Summary & 15 Largest Unsecured Creditors
JLT ENTERPRISES: Case Summary & 20 Largest Unsecured Creditors
JOHN DAVIS: Case Summary & 20 Largest Unsecured Creditors
JURGIELEWICZ DUCK FARM: Files Chapter 11 in New York
JASSEM SHOE: Files for Chapter 11 in Los Angeles
LANDAMERICA FIN'L: District Court to Hear De Maio Appeal Jan. 20
LANDAMERICA FIN'L: OneStop Wants Removal Period Until June 2
LANDAMERICA FIN'L: SEC Opposes Document Requests
LATITUDES INVESTMENTS: Case Summary & 14 Largest Unsec. Creditors
LEHMAN BROTHERS: Allowed to Buy Loans for $1.39 Billion Cash
LESLIE'S POOLMART: S&P Gives Stable Outlook; Affirms 'B' Rating
MACE SECURITY: Regains Compliance of NASDAQ $1 Minimum Bid Rule
MILES PROPERTIES: REIT Slowdown Prompts Chapter 11 Filing
MORTGAGE GUARANTY: Fitch Withdraws 'BB-' Insurer Strength Rating
MESA AIR: U.S. Trustee Appoints Official Committee of Creditors
MESA AIR: Vendor Payments Limited to $3.8MM for Now
NAVISTAR INT'L: To Hold Live Audio Webcast on January 19
NEXTMEDIA GROUP: U.S. Trustee Unable to Form Creditors Committee
NEXTMEDIA GROUP: Plan Provides Full Recovery for Unsecured Claims
NORANDA ALUMINUM: S&P Puts 'CCC+' Rating on CreditWatch Positive
NOVADEL PHARMA: Nets $86,770 in Seaside 88 Transaction
NOVADEL PHARMA: ProQuest Converts $3.6 Million Debt for Equity
NOVADEL PHARMA: To Move HQ to Bridgewater, Inks Lease with Regus
NOVADEL PHARMA: To Pay CEO Ratoff $350,000 Annual Base Salary
PAUL REINHART: Plan Outline OK'd; Unsec. Creditors to Recover 26%
PMP II: List of 20 Largest Unsecured Creditors
PMP II: Sec. 341 Creditors Meeting Set for Feb. 10
PNG VENTURES: Court to Consider Plan Confirmation on March 5
PPA HOLDINGS: Creditors Committee Proposes Plan of Reorganization
READER'S DIGEST: Sells Digital Learning Co. For $32M
RELIANCE AVIATION: Files for Chapter 11 in Ft. Lauderdale
RELIANT ENERGY: Kelson Won't Get $15M Breakup Fe, 3rd Circ.
ROBERT BRENNAN: Superior Court Approved Distribution Plan
SMURFIT-STONE: Gets May 21 Plan Exclusivity Extension
TLC VISION: Aims to Sell Canadian Business for $9.4 Million
TOUSA INC: Creditors May Have Green Light to Sue Parent
TOUSA INC: Lenders Oppose Committee Plea to File $60MM Suit
TOUSA INC: Paul Berkowitz Returns to Greenberg Traurig
TOUSA INC: Wins Final Approval for Cash Collateral Use
TOUSA INC: Wants to Stay Committee's D&O Action
TUMBLEWEED INC: Court Approves Plan to Restructure Debt
UCBH HOLDINGS: Fitch Downgrades Issuer Default Rating to 'D'
UNIGENE LABORATORIES: Delays Effective Date of Shelf Prospectus
U.S. INTER-MEX: Voluntary Chapter 11 Case Summary
VIEW SYSTEMS: Files Amendment No. 2 to Fiscal 2008 Annual Report
VILLAGE VOICE: Decries Bankruptcy Speculation
VISION CARE: Case Summary & 20 Largest Unsecured Creditors
VITESSE SEMICONDUCTOR: Adopts FY 2010 Executive Bonus Plan
VO LLC: Case Summary & 6 Largest Unsecured Creditors
WASHINGTON MUTUAL: District Court Suit Held Up
WILSHIRE ENTERPRISES: Receives Delisting Notice From NYSE Amex
YOUNG BROADCASTING: Creditors Fight Lenders Over Ch. 11 Plan
ZISCO RESTAURANT: Files for Chapter 11 Bankruptcy Again
* Large Companies With Insolvent Balance Sheets
*********
294 5TH AVENUE: Case Summary & 4 Largest Unsecured Creditors
------------------------------------------------------------
Debtor: 294 5th Avenue Associates, LLC
1033 86th St.
Brooklyn, NY 11228
Bankruptcy Case No.: 10-40222
Debtor-affiliates filing separate Chapter 11 petition:
Entity Case No.
------ --------
296 5th Avenue Group, LLC 10-40223
Chapter 11 Petition Date: January 13, 2010
Court: United States Bankruptcy Court
Eastern District of New York (Brooklyn)
Judge: Elizabeth S. Stong
Debtor's Counsel: Bruce Weiner, Esq.
Rosenberg Musso & Weiner LLP
26 Court Street, Suite 2211
Brooklyn, NY 11242
Tel: (718) 855-6840
Fax: (718) 625-1966
Email: rmwlaw@att.net
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
According to the schedules, the Company has assets of 1,805,100,
and total debts of $2,022,982.
A full-text copy of the Debtor's petition, including a list of its
4 largest unsecured creditors, is available for free at:
http://bankrupt.com/misc/nyeb10-40222.pdf
The petition was signed by Dev Murjani, managing member of the
Company.
ABITIBIBOWATER INC: Has Competing Bid for Closed Steilacoom Plant
-----------------------------------------------------------------
Bill Rochelle at Bloomberg News reports that AbitibiBowater Inc.
initially proposed a private sale of a shuttered newsprint mill in
Steilacoom, Washington to a buyer for $4.5 million. A competing
buyer, Commercial Development Co., filed papers in bankruptcy
court on Jan. 12 attaching a contract with a $4.6 million sale
price. Consequently, the Jan. 19 hearing for approval of the sale
may turn into an auction. The competing buyer said it has
"access" to all required funding and made a $100,000 deposit with
its lawyers.
Headquartered in Montreal, Canada, AbitibiBowater Inc. --
http://www.abitibibowater.com/-- produces a wide range of
newsprint, commercial printing papers, market pulp and wood
products. It is the eighth largest publicly traded pulp and paper
manufacturer in the world. AbitibiBowater owns or operates 23
pulp and paper facilities and 28 wood products facilities located
in the United States, Canada, the United Kingdom and South Korea.
Marketing its products in more than 90 countries, the Company is
also among the world's largest recyclers of old newspapers and
magazines, and has third-party certified 100% of its managed
woodlands to sustainable forest management standards.
AbitibiBowater's shares trade over-the-counter on the Pink Sheets
and on the OTC Bulletin Board under the stock symbol ABWTQ.
The Company and several of its affiliates filed for protection
under Chapter 11 of the U.S. Bankruptcy Code on April 16, 2009
(Bankr. D. Del. Lead Case No. 09-11296). Judge Kevin J. Carey
presides over the case. The Company and its Canadian affiliates
commenced parallel restructuring proceedings under the Companies'
Creditors Arrangement Act before the Quebec Superior Court
Commercial Division the next day. Alex F. Morrison at Ernst &
Young, Inc., was appointed CCAA monitor.
Paul, Weiss, Rifkind, Wharton & Garrison LLP, serves as the
Debtors' U.S. bankruptcy counsel. Stikeman Elliot LLP, acts as
the Debtors' CCAA counsel. Young, Conaway, Stargatt & Taylor, in
Wilmington, Delaware, serves as the Debtors' co-counsel, while
Troutman Sanders LLP in New York, serves as the Debtors' conflicts
counsel in the Chapter 11 proceedings. The Debtors' financial
advisors are Advisory Services LP, and their noticing and claims
agent is Epiq Bankruptcy Solutions LLC. The CCAA Monitor's
counsel is Thornton, Grout & Finnigan LLP, in Toronto, Ontario.
Abitibi-Consolidated Inc. and various Canadian subsidiaries filed
for protection under Chapter 15 of the U.S. Bankruptcy Code on
April 17, 2009 (Bankr. D. Del. 09-11348). Judge Carey also
handles the Chapter 15 case. Pauline K. Morgan, Esq., and Sean T.
Greecher, Esq., at Young, Conaway, Stargatt & Taylor, in
Wilmington, represent the Chapter 15 Debtors.
As of Sept. 30, 2008, the Company had $9,937,000,000 in total
assets and $8,783,000,000 in total debts.
Bankruptcy Creditors' Service, Inc., publishes AbitibiBowater
Bankruptcy News. The newsletter provides gavel-to-gavel coverage
of the Chapter 11 proceedings and parallel proceedings under the
Companies' Creditors Arrangement Act in Canada undertaken by
Abitibibowater Inc. and its various affiliates.
(http://bankrupt.com/newsstand/or 215/945-7000).
ACCENTIA BIOPHARMA: May File Reorganization Plan by January 22
--------------------------------------------------------------
Accentia Biopharmaceuticals, Inc. and its debtor affiliates asked
the U.S. Bankruptcy Court for the Middle District of Florida to
approve a stipulation extending until January 22, 2010, the
Debtors' exclusive right to file a plan of reorganization.
Lenders Laurus Master Fund, Ltd., and its affiliates signed, for
the fifth time, a stipulation consenting to an extension of
Accentia's plan filing periods. Laurus agreed that if the Debtors
file a plan of reorganization on or before January 22, the Debtors
will continue to have the exclusive rights to solicit acceptances
of that plan until March 31, 2010.
Headquartered in Tampa, Florida, Accentia BioPharmaceuticals Inc.
(Nasdaq: ABPI) -- http://www.accentia.net/--is biopharmaceutical
company focused on the development and commercialization of drug
candidates that are in late-stage clinical development and
typically are based on active pharmaceutical ingredients that have
been previously approved by the FDA for other indications. The
Company's lead product candidate is SinuNase(TM), a novel
application and formulation of a known therapeutic to treat
chronic rhinosinusitis.
The Company has acquired the majority ownership interest in
Biovest International Inc. and a royalty interest in Biovest's
lead drug candidate, BiovaxID(TM) and any other biologic products
developed by Biovest. The Company also has a specialty
pharmaceutical business, which markets products focused on
respiratory disease and an analytical consulting business that
serves customers in the biopharmaceutical industry.
Accentia BioPharmaceuticals and nine affiliates filed for Chapter
11 protection on November 10, 2008 (Bankr. M.D. Fla., Lead Case
No. 08-17795). Charles A. Postler, Esq., and Elena P. Ketchum,
Esq., at Stichter, Riedel, Blain & Prosser, in Tampa, Florida; and
Jonathan B. Sbar, Esq., at Rocke, McLean & Sbar, P.A., represent
the Debtors as counsel. Attorneys at Olshan Grundman Frome
Rosenzweig, and Genovese Joblove & Battista PA, represent the
official committee of unsecured creditors. The Debtors said
assets totalled $134,919,728 while debts were $77,627,355 as of
June 30, 2008.
ADVANTA CORP: Rejects Citizens Bank Park & Lincoln Field Leases
---------------------------------------------------------------
NetDockets reports Advanta Corp. is seeking permission from the
U.S. Bankruptcy Court for the District of Delaware to reject two
agreements whereby the company leases suites at Citizens Bank Park
(home of the Philadelphia Phillies major league baseball club) and
Lincoln Financial Field (home of the Philadelphia Eagles national
football league club).
NetDockets notes the Debtor did not detail the terms of the
agreements. NetDockets says the Debtor's motions simply state
that Advanta and its affiliates have "determined, in the exercise
of their sound business judgment, that maintaining access to the
suite at [Citizens Bank Park/Lincoln Financial Field] , with the
corresponding financial drain the related license fees impose on
the Debtors' estates, would be burdensome and provide no
corresponding benefit or utility."
The Court is slated to hear the request February 4, 2010.
Objections are due by January 28, 2010.
About Advanta Corp.
Advanta Corp. -- http://www.advanta.com/-- has had a 59-year
history of being a leading innovator in the financial services
industry and of providing great value to its stakeholders,
including its senior retail note holders and shareholders, prior
to the recent reversals. It has also been a major civic and
charitable force in the communities in which it is based,
particularly in the Greater Philadelphia area.
The Federal Deposit Insurance Corporation placed significant
restrictions on the activities of Advanta Corp.'s Advanta Bank
Corp. following financial woes by the banking unit.
As of Sept. 30, 2009, the Company had $2,497,897,000 in assets
against total liabilities of $2,465,936,000 but the figures
included those of the banking units.
On November 8, 2009, Advanta Corp. filed for Chapter 11 (Bankr. D.
Del. Case No. 09-13931). Attorneys at Weil, Gotshal & Manges LLP,
and Richards, Layton & Finger, P.A., serve as bankruptcy counsel.
Alvarez & Marsal serves as financial advisor. The Garden City
Group, Inc., serves as claims agent. The filing did not include
Advanta Bank. The petition says that Advanta Corp.'s assets
totalled $363,000,000 while debts totalled $331,000,000 as of
Sept. 30, 2009.
AEGON: To Delist From Tokyo Stock Exchange
------------------------------------------
AEGON will make an application to delist its common shares from
the Tokyo Stock Exchange.
The volume of AEGON shares traded on the Tokyo Stock Exchange is
negligible and does not justify the related expenses.
AEGON shares will continue to be listed on Euronext Amsterdam, the
New York Stock Exchange and the London Stock Exchange.
About AEGON
As an international life insurance, pension and investment company
based in The Hague, AEGON has businesses in over twenty markets in
the Americas, Europe and Asia. AEGON companies employ
approximately 29,000 people and have over 40 million customers
across the globe.
AFFILIATED MEDIA: May File for Bankruptcy as Soon as Friday
-----------------------------------------------------------
People familiar with the matter told The Wall Street Journal's
Mike Spector and Shira Ovide report that Affiliated Media Inc.,
plans to file for bankruptcy protection as soon as this week. One
source told the Journal the bankruptcy filing, expected to be made
in Delaware, could come as soon as Friday, but cautioned that the
filing could be pushed back to next week.
As reported by the Troubled Company Reporter yesterday, Affiliated
Media said it has obtained the approval of its lenders for a
financial restructuring of the company that will sharply reduce
its debt, boost its cash flow and allow greater financial
flexibility. The plan will be implemented in the near future
through a "prepackaged" chapter 11 filing.
The TCR reported that the reorganization, structured in
consultation with the company's senior lenders, provides for the
swap by senior lenders of debt for equity, and reduction of the
company's debt of roughly $930 million to $165 million. There will
be no management change or change in control of the company.
William Dean Singleton, Chairman and Chief Executive Officer of
MediaNews Group, will continue to select a majority of the members
on the Board of Directors. The Singleton-led management will be
authorized to own 20% of the company through stock and warrants.
Singleton and company President Joseph J. Lodovic IV will control
the company through their ownership of all class A shares of the
company, which entitles them to elect a majority of the board of
directors. Other stockholders will own class B and class C
shares.
At present, senior lenders to the company are owed roughly $590
million, guaranteed by certain affiliates. The company also owes
an aggregate principal amount of about $326 million to holders of
subordinated notes. By accepting the prepackaged plan, senior
lenders will trade their existing claims and guarantees for a pro
rata share of the new secured term loan, in a smaller principal
amount but with more collateral and a more financially sound
borrower, as well as ownership of a majority of the new equity of
the reorganized company, subject to a gradual dilution as a result
of grants of restricted stock. Subordinated note holders will
receive warrants for future equity. All existing equity interests
in Affiliated Media will be cancelled.
People familiar with the transaction told the Wall Street Journal
Affiliated Media has been valued at roughly $200 million,
including about $50 million of equity value.
The TCR, citing Huffington Post, said Hearst Corp. and the Scudder
family are giving up interests in MediaNews. A spokesman for
Hearst declined to comment Friday, according to Huffington Post.
In a prior report, the Wall Street Journal's Mr. Spector and Ms.
Ovide said Hearst has at least $400 million in equity and debt
tied to MediaNews, and the investment will be wiped out by the
bankruptcy filing. "We have worked side-by-side with Hearst on
this," Mr. Singleton said, the Journal said.
The Journal notes the expected bankruptcy filing would be at least
the seventh to touch the newspaper industry over roughly the last
year. The others include Tribune Co., publisher of the Chicago
Tribune and the Los Angeles Times, and Freedom Communications,
which owns the Orange County Register. Journal Register Co. and
the Star Tribune newspaper in Minneapolis had short trips in
bankruptcy and have emerged from court protection owned largely by
banks that held the company's debt, the Journal notes.
About Affiliated Media
Affiliated Media Inc. is the holding company of MediaNews Group
Inc., which owns 54 daily newspapers including the Denver Post and
the San Jose Mercury News, along with television and radio
broadcasters.
AMERICAN INT'L: Seeks to Reduce Bonuses to AIGFP Employees
----------------------------------------------------------
The Wall Street Journal's Serena Ng, citing, people familiar with
the matter, relates American International Group Inc. is seeking
to reduce and pay out early a batch of retention payments to
employees at its AIG Financial Products division, as the Company
tries to defuse a potential showdown over the bonuses.
The Journal notes AIG is obligated to pay out $195 million in
retention bonuses in March to AIGFP employees. Sources told the
Journal AIG recently discussed a proposal to make the payment
several weeks early if employees agree to have it reduced by 10%
to 15%.
The Journal relates AIG wants to appease demands from U.S. pay
czar Kenneth Feinberg, who has told the Company to reduce its
March 2010 retention awards and insisted that pledges from AIGFP
employees to return portions of their March 2009 retention
payments be fully honored. AIG hopes to satisfy demands that some
of the earlier bonuses paid to employees of the unit be returned.
The Journal says AIG is also trying to reduce uncertainty among
employees at AIGFP, which is in the process of unwinding
derivative trades that could still pose considerable risk to AIG
and the financial system.
The Journal notes AIG's payment of retention awards to employees
at AIGFP has become a political lightning rod after the unit's
soured derivative trades on mortgages nearly felled the entire
company in 2008 and prompted the massive U.S. bailout of AIG. In
March, public and congressional outrage erupted after $168 million
in retention awards were given to a large group of AIGFP
employees.
The public outcry led to demands that the money be repaid, and
some executives said they would repay portions of their March 2009
bonuses. By August 2009, there were pledges to return a total of
$45 million, of which $19 million had been collected, a government
audit noted in October.
The Journal says AIG is currently scheduled to pay out another
$195 million in retention awards by March 15, 2010. Sources told
the Journal AIG is hoping to reduce those awards by $26 million,
which would enable the full $45 million in pledged amounts from
the March 2009 retention payments to be repaid.
According to the Journal, it is unclear if the proposal will win
Mr. Feinberg's support. Details of the plan are still being
worked out and AIG is also exploring other ways of dealing with
the issue.
The Journal also says AIG is in the midst of negotiating 2010
compensation packages for its top 25 employees with Mr. Feinberg.
Roughly a quarter of AIG's top 100 executives work at AIGFP and
some are in the top 25 group. Most of the individuals who created
the unit's problematic mortgage trades have left the firm, and the
remaining employees at AIGFP are working to close out or unwind
thousands of derivatives tied to interest rates, bonds, currencies
and commodities.
According to the Journal, some AIG officials predict it will take
at least another year for AIGFP to unwind the bulk of its
remaining positions and until then, it will need to retain some
key individuals to oversee this process. A resolution of the
March 2010 retention payments and the terms of new 2010
compensation deals could determine whether the remaining employees
at AIGFP stay or depart en masse this spring.
About AIG Inc.
Based in New York, American International Group, Inc., is the
leading international insurance organization with operation in
more than 130 countries and jurisdictions. AIG companies serve
commercial, institutional and individual customers through the
most extensive worldwide property-casualty and life insurance
networks of any insurer. In addition, AIG companies are leading
providers of retirement services, financial services and asset
management around the world. AIG's common stock is listed on the
New York Stock Exchange, as well as the stock exchanges in Ireland
and Tokyo.
In September 2008, AIG experienced a liquidity crunch when its
credit ratings were downgraded below "AA" levels by Standard &
Poor's, Moody's Investors Service and Fitch Ratings. On
September 16, 2008, the Federal Reserve Bank created an
$85 billion credit facility to enable AIG to meet increased
collateral obligations consequent to the ratings downgrade, in
exchange for the issuance of a stock warrant to the Fed for 79.9%
of the equity of AIG. The credit facility was eventually
increased to as much as $182.5 billion.
AIG has sold a number of its subsidiaries and other assets to pay
down loans received from the U.S. government, and continues to
seek buyers of its assets.
AMERITYRE CORP: Intends to Delist Common Stock From Nasdaq
----------------------------------------------------------
Amerityre Corporation has notified The Nasdaq Stock Market of its
intent to file its Form 25 with the Securities and Exchange
Commission on January 25, 2010, to delist the Company's common
stock from Nasdaq effective February 4, 2010. The Company has
been unable to meet minimum requirements of Nasdaq's Equity
Standard Listing Rule 5550(b) because the Company does not have a
minimum of $2,500,000 in stockholders' equity, $35,000,000 market
value of listed securities, or $500,000 of net income from
continuing operations for the most recently completed fiscal year
or two of the three most recently completed fiscal years. The
Company received notice on October 5, 2009 that it was in
violation of the Rule but submitted a plan to regain compliance
and was granted additional time, until January 19, 2010, to
demonstrate compliance with the minimum requirements. However,
the Company has determined that it cannot achieve compliance with
the Rule by the deadline and has therefore decided to file the
Form 25.
Previously, on September 16, 2009, the Company was notified by
Nasdaq that the closing bid price of the Company's common stock
was below $1.00 for 30 consecutive business days, and therefore,
the Company was not in compliance with Nasdaq Listing Rule
5550(a)(2). In accordance with Nasdaq Listing Rule 5810(c)(3)(A),
the Company had a grace period of 180 calendar days, or until
March 15, 2010, to regain compliance with this Rule but at this
time, the Company has not regained compliance with this Rule
either and cannot determine with certainty whether it might regain
compliance before the end of the grace period.
Pursuant to the Form 25, the Company's common stock will no longer
be traded on Nasdaq after February 4, 2010. The Company has asked
a market maker to make application on the Company's behalf to have
its common stock quoted on Nasdaq's Over the Counter Bulletin
Board. The Company will continue to file periodic reports with
the Securities and Exchange Commission pursuant to the
requirements of Section 12(g) of the Exchange Act.
Notwithstanding the delisting, the Company believes its financial
condition and operations are healthy and sustainable. The board
of directors and management also believe that the Company may
realize some cost savings as a result of the delisting. In
addition, the Company anticipates increasing its product offerings
and achieving higher revenues in the balance of its fiscal year
ending June 30, 2010.
About Amerityre Corporation
Amerityre Corporation (Nasdaq: AMTY) -- http://www.amerityre.com/
-- is engaged in the research and development of technologies
related to the formulation of polyurethane compounds and the
manufacturing process for producing tires from polyurethane. The
Company's polyurethane material technology is based on two
formulations: the closed-cell polyurethane foam, which is a
lightweight material with high load-bearing capabilities for
light-use applications, and Elastothane, a polyurethane elastomer
with high load-bearing capabilities suitable for heavy-use
applications. The Company is developing tires and treads for
tires using Elastothane for a range of applications. In March
2008, the Company acquired molds and models from a manufacturer of
polyurethane foam tires, Kik Technology, Inc.
Going Concern Doubt
As reported by the Troubled Company Reporter on Oct. 6, 2009, HJ &
Associates, LLC, in Salt Lake City, Utah, expressed substantial
doubt about Amerityre Corporation's ability to continue as a going
concern after auditing the Company's financialstatements for the
fiscal years ended June 30, 2009, and 2008. The auditor noted
that the Company suffered recurring losses from operations that
have resulted in an accumulated deficit.
The Company's ability to continue as a going concern is dependent
upon its ability to successfully accomplish the business plan, and
attain profitable operations.
The Company's balance sheet at June 30, 2009, showed total assets
of $2,871,061, total liabilities of $1,028,650 and a stockholders'
equity of $1,842,411.
For fiscal year ended June 30, 2009, the Company posted a net loss
of $3,623,899 compared with a net loss of $4,223,424 for the same
period in 2008.
AMIDEE CAPITAL: Case Summary & 20 Largest Unsecured Creditors
-------------------------------------------------------------
Debtor: Amidee Capital Group, Inc.
14420 W. Sylvanfield Drive, Suite 100
Houston, TX 77014
Bankruptcy Case No.: 10-20041
Debtor-affiliates filing separate Chapter 11 petitions:
Entity Case No.
------ --------
Amidee 2006 Preferred Real Estate
Income Program, Ltd. 10-20042
Amidee Oak Pointe Apartments, LLC 10-20043
Amidee 2004-I Tax Deed and Certificate
Investment Program, Ltd. 10-20044
Amidee 2005-II Texas Tax Deed &
Investment Program, Ltd. 10-20045
Amidee 2006-III Tax Deed Real Estate
Investment Program, Ltd. 10-20046
Amidee 2006 Commercial Real Estate
Income Program, Ltd. 10-20047
Amidee 2007-I CRE Income Fund, Ltd. 10-20048
Amidee 2008-I CRE Income Fund, Ltd. 10-20049
Amidee 2009-I CRE Income Fund, Ltd. 10-20050
Chapter 11 Petition Date: January 17, 2010
Court: United States Bankruptcy Court
Southern District of Texas (Corpus Christi)
Judge: Richard S. Schmidt
Debtor's Counsel: Matthew Scott Okin, Esq.
Okin Adams & Kilmer LLP
1113 Vine Street, Suite 201
Houston, TX 77002
Tel: (713) 228-4100
Fax: (888) 865-2118
Email: mokin@oakllp.com
Estimated Assets: $10,000,001 to $50,000,000
Estimated Debts: $10,000,001 to $50,000,000
The petition was signed by James T. Cook.
Debtor's List of 20 Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
------ --------------- ------------
Leo Vasquez $35,559
Tax Assesssor-Collector
City of Houston $24,268
Bank of America $22,852
First Access Capital Corp. $15,732
Sherrie Malone $10,321
Danny Thompson $9,275
The Hartford $5,191
Dell Commercial Credit $5,001
US Bank Office Equipment $4,286
Finance Servcs.
Bonus Building Care $3,187
Home Depot Credit Services $2,573
Broadview Security $1,638
Green Day Designs $1,594
Alief ISD $1,499
Anthony Ustica $1,476
Pitney Bowes $1,378
Logix Communications $1,271
American Business $1,132
Machines Inc.
Marlin Leasing Corp. $1,085
Pitney Bowes Global $930
ARCH ALUMINUM: Sun Capital Gets Court OK to Buy Company
-------------------------------------------------------
Arch Aluminum & Glass Company disclosed that the Bankruptcy Court
of the Southern District of Florida has approved an agreement to
sell Arch's assets and business to an affiliate of Sun Capital
Partners, Inc. Arch, which previously filed a voluntary petition
for Chapter 11 reorganization in November 2009, intends to
maintain all normal business operations while the transaction is
completed in the next few weeks.
"We are delighted with our agreement to be acquired by an
affiliate of Sun Capital," said Leon Silverstein, Arch's President
and Chief Executive Officer. "We have known the firm for many
years, and their financial and operating expertise spanning more
than 100 portfolio companies over the past 15 years will bring
added value to our organization as we begin a new chapter in our
history. We look forward to working with their senior operating
and financial team."
Aaron P. Wolfe, Principal, Sun Capital Partners, added, "Arch has
been known as an industry leader providing high quality service
and a comprehensive product offering of fabricated glass for the
architectural industry and aluminum for the architectural
industry. The Silverstein family has done a terrific job growing
the business over the years, and we believe that our experience in
similar building and construction product sectors will further
enhance the position of Arch."
About Sun Capital Partners
Sun Capital Partners, Inc. is a leading private investment firm
focused on leveraged buyouts, equity, debt, and other investments
in companies that can benefit from its in-house operating
professionals and experience. Sun Capital affiliates have
invested in and managed more than 215 companies worldwide with
combined sales in excess of $37.0 billion since Sun Capital's
inception in 1995. Sun Capital has offices in Boca Raton, Los
Angeles, and New York, as well as affiliates with offices in
London, Paris, Frankfurt, and Shenzhen.
About Arch Aluminum & Glass Company
Tamarac, Florida-based Arch Aluminum & Glass Co., Inc. -- fka
Trident Consolidated Industries, Arch, Inc., and Arch Tulsa
Acquisition Co.; and dba Arch Mirror North, Arch Mirror South,
Architectural Safety Glass, Arch Mirror West, Arch Tempered Glass
Products, and Arch Deco Glass -- was founded in 1978 by Robert
Silverstein, as a small South Florida glass and metal distributor
with a single truck. During the 1980's the Company opened
fabrication facilities and additional distribution facilities in
Florida and the Northeast. The Company provides a comprehensive
line of products and services to more than 5,000 customers from 28
office, manufacturing and distribution facilities located in 19
states nationwide.
The Company filed for Chapter 11 bankruptcy protection on
November 25, 2009 (Bankr. S.D. Fla. Case No. 09-36232). The
Company listed $100,000,001 to $500,000,000 in assets and
$100,000,001 to $500,000,000 in liabilities.
The Company's affiliates -- Arch Aluminum L.C.; AWP, LLC, dba
Yale-Ogron; Arch Aluminum and Glass International Inc.; and AAG
Holdings, Inc. -- also filed separate Chapter 11 petition.
Paul J. Battista, Esq., at Genovese Jblove & Battista, P.A.,
assists the Debtors in their restructuring efforts. Schnader
Harrison Segal & Lewis LLP is the Debtors' special counsel.
Vincen J. Colistra at Phoenix Management Services is the Debtors'
restructuring services provider. Michael Dillahunt and Piper
Jaffrey & Co. is the Debtors' investment banker.
ARTHUR FEFFERMAN: Case Summary & 10 Largest Unsecured Creditors
---------------------------------------------------------------
Debtor: Arthur Fefferman
39 Rose Road
Livingston, NJ 07039
Bankruptcy Case No.: 10-11059
Chapter 11 Petition Date: January 15, 2010
Court: United States Bankruptcy Court
District of New Jersey (Newark)
Judge: Morris Stern
Debtor's Counsel: Gerald H. Gline, Esq.
Cole, Schotz, Meisel, Forman & Leonard
25 Main Street
Hackensack, NJ 07601
Tel: (201) 489-3000
Fax: (201) 489-1536
Email: ggline@coleschotz.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $50,000,001 to $100,000,000
According to the schedules, the Company has assets of $3,102,025,
and total debts of $51,076,817.
A full-text copy of Mr. Fefferman's petition, including a list of
his 10 largest unsecured creditors, is available for free at:
http://bankrupt.com/misc/njb10-11059.pdf
The petition was signed by Mr. Fefferman.
ASHBY ENTERPRISES: Case Summary & 20 Largest Unsecured Creditors
----------------------------------------------------------------
Debtor: Ashby Enterprises (Brandon), Inc.
9239 Adamo Dr.
Tampa, FL 33619
Bankruptcy Case No.: 10-00706
Debtor-affiliates filing separate Chapter 11 petitions:
Entity Case No.
------ --------
A.B.C.C. Enterprise, LLC 10-00705
A.S.K. Contract Flooring, Inc. 10-00708
Flooring Gallery, Inc. 10-00710
Chapter 11 Petition Date: January 14, 2010
Court: United States Bankruptcy Court
Middle District of Florida (Tampa)
Debtor's Counsel: Bernard J. Morse, Esq.
Morse & Gomez PA
11268 Winthrop Main Street, Suite 102
Riverview, FL 33578
Tel: (813) 341-8400
Fax: (813) 463-1807
Email: chipmorse@morsegomez.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
A full-text copy of the Debtors' petition, including a list of
their 20 largest unsecured creditors, is available for free at:
http://bankrupt.com/misc/flmb10-00706.pdf
The petition was signed by Rufus Ashby, president of the Company.
ATENOGENES BAEZ: Case Summary & 8 Largest Unsecured Creditors
-------------------------------------------------------------
Debtor: Atenogenes Baez
11-44 Welling Court
Astoria, NY 11102
Bankruptcy Case No.: 10-40241
Chapter 11 Petition Date: January 14, 2010
Court: United States Bankruptcy Court
Eastern District of New York (Brooklyn)
Judge: Elizabeth S. Stong
Debtor's Counsel: Richard S. Feinsilver, Esq.
One Old Country Road, Suite 125
Carle Place, NY 11514
Tel: (516) 873-6330
Fax: (516) 873-6183
Email: feinlawny@yahoo.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
According to the schedules, the Company has assets of $1,253,100,
and total debts of $1,450,440.
A full-text copy of the Debtor's petition, including a list of its
8 largest unsecured creditors, is available for free at:
http://bankrupt.com/misc/nyeb10-40241.pdf
The petition was signed by Atenogenes Baez.
ATLANTA APARTMENTS: Files for Chapter 11 Bankruptcy
---------------------------------------------------
Atlanta Apartments Go filed for Chapter 11 bankruptcy, listing
Wachovia Financial as largest creditor, according to
coosavalleynews.com. Atlanta Apartments owns five Georgia
apartment complexes including Highland Gardens in Chamblee,
Highland Brooke and Highland North in Atlanta, Highland Estates in
Decatur and Highland Enclave in Clarkston.
AVENTINE RENEWABLE: Sending Plan to Creditors for Voting
--------------------------------------------------------
BankruptcyData reports that Aventine Renewable Energy Holdings
received approval of the disclosure statement explaining its
reorganization plan.
Under the Plan, as revised, the Company will issue $105 million in
notes on the Plan's effective date. Those notes will be used to
fund plan distributions and post-emergence working capital needs.
Holders of about 70% of its pre-bankruptcy unsecured notes have
agreed to purchase up to $105 million of the new senior secured
notes. The senior secured notes will be issued in units
containing a $1,000 face amount note and a share of 20% of the
total shares of the reorganized Company to be issued with the
notes. The notes will bear interest at a rate of either 13%,
payable in cash, or 15% with a payment-in-kind component.
Pekin, Illinois-based Aventine Renewable Energy Holdings, Inc.
(Pink Sheets: AVRN) -- http://www.aventinerei.com/-- is a
producer and marketer of ethanol to many leading energy companies
in the United States. In addition to ethanol, Aventine also
produces distillers grains, corn gluten meal, corn gluten feed,
corn germ and brewers' yeast.
Morgan Stanley Capital Partners IV bought Aventine in May 2003
from Williams Cos. Aventine had a public offering in May 2006.
The Morgan Stanley group retained 28% of the stock at year's end.
The Company and its affiliates filed for Chapter 11 on April 7,
2009 (Bankr. D. Del. Lead Case No. 09-11214). Joel A. Waite,
Esq., and Ryan M. Bartley, Esq., at Young, Conaway, Stargatt &
Taylor, serves as bankruptcy counsel to the Debtors. Davis Polk
& Wardwell is special tax counsel and Houlihan, Lokey, Howard &
Zukin, Inc., is the financial advisor. Garden City Group, Inc.,
has been engaged as claims agent. Donald J. Detweiler, Esq., at
Greenberg Traurig, LLP, serves as counsel to the official
committee of unsecured creditors. When it filed for bankruptcy
protection from its creditors, Aventine Renewable listed between
$100 million and $500 million each in assets and debts.
AXIA INC: Has February 11 Auction for Assets
--------------------------------------------
Bill Rochelle at Bloomberg News reports that Axia Inc. won
approval from the Bankruptcy Court to auction its automatic taping
and drywall finishing tools manufacturing business on Feb. 11.
Under the sale process, a group that includes existing lenders and
shareholders will buy the assets, absent higher and better bids.
The agreed price is a $9 million note payable to the senior term-
loan lenders and 21.5% of the equity earmarked for the
subordinated secured term loan. Any competing bids must be
submitted by Feb. 8. A hearing for approval of the sale is
scheduled for Feb. 17.
Axia Inc. and Ames Taping manufacture automatic taping and drywall
finishing tools. Ames' principal business is the rental and
service of its fleet of over 220,000 ATF tools under its flagship
Bazooka(R) brand name through its network of over 200 Company-
owned stores, franchised locations, field vans, and rental
stations located throughout the U.S. and Canada. Ames also sells
ATF tools in the U.S. and Canada under the broadly recognized
brand name TapeTech(R) through a network of over 200 independent
dealers, and internationally, under the brand name Premier
International(R). The Companies are controlled by Aurora Equity
Partners.
Axia Inc. and three affiliates filed for Chapter 11 on Dec. 14,
2009 (In re Ames Holding Corp., Bankr. D. Del. Case No. 09-14406).
Assets at Oct. 30, 2009, were $178 million. Liabilities include
$69.2 million on a senior secured term loan and a $91.8 million
subordinated secured term loan.
Attorneys at Richards, Layton & Finger, P.A., represents the
Debtors.
AXION INTERNATIONAL: Significant Losses Prompt Going Concern Doubt
------------------------------------------------------------------
Jewett, Schwartz, Wolfe and Associates, in Hollywood, Florida,
expressed substantial doubt about Axion International Holdings,
Inc.'s ability to continue as a going concern after auditing the
Company's consolidated financial statements as of and for the year
ended September 30, 2009.
The Company has incurred significant losses since inception. The
independent public accounting firm reported that the Company needs
to seek new sources or methods of financing or revenue to pursue
its business strategy.
The Company reported a net loss of $5,759,415 on revenue of
$1,374,961 for the year ended September 30, 2009, compared to a
net loss of $3,544,161 on revenue of $6,472 from inception through
September 30, 2008.
In the current fiscal year, the Company completed its first
construction project, the construction of two bridges at Fort
Bragg, N.C., for which the Company recognized $784,411 of revenue,
and also recorded its first significant sales of railroad ties,
which amounted to a total of $590,550 during the period, including
$530,347 to a single customer. In the prior fiscal year, the
Company earned modest revenues of $6,472 related to a purchase of
railroad crossties by a foreign transit authority for testing.
Total operating costs and expenses were $4,543,150 for the fiscal
year ended September 30, 2009, compared to $1,726,570 in the
period from inception to September 30, 2008.
Balance Sheet
At September 30, 2009, the Company's consolidated balance sheet
showed total assets of $2,035,334, total liabilities of
$1,329,233, and total stockholders' equity of $706,101.
A full-text copy of the Company's annual report on Form 10-K is
available for free at http://researcharchives.com/t/s?4d7b
About Axion International
Based in New Providence, N.J., Axion International Holdings, Inc.
is the exclusive licensee of patented and patent-pending
technologies developed for the production of structural plastic
products such as railroad crossties, bridge infrastructure, marine
pilings and bulk heading in several territories including North
and South America, the Caribbean, South Korea, Saudi Arabia, The
United Arab Emirates, and Russia; additionally, China is a shared
country with the Company's strategic partner, Micron.
BARE ESCENTUALS: S&P Puts 'B+' Rating on CreditWatch Positive
-------------------------------------------------------------
Standard & Poor's Ratings Services placed its 'B+' corporate
credit rating on Bare Escentuals Beauty Inc. on CreditWatch with
positive implications.
Japan-based cosmetics company Shiseido Co. Ltd. (A+/Watch Neg/A-1)
announced it will acquire 100% of the outstanding common shares of
Bare Escentuals in a cash tender offer for $18.20 per share
(approximately $1.7 billion). The transaction is not conditional
on financing. Bare Escentuals had about $231 million in debt
outstanding as of Sept. 27, 2009.
Standard & Poor's will monitor events closely as they occur. Upon
completion of the acquisition, S&P will likely raise the debt
ratings on Bare Escentuals to the same level as those on Shiseido
and withdraw the corporate credit rating on Bare Escentuals.
BKMJ PROPERTIES: Case Summary & 2 Largest Unsecured Creditors
-------------------------------------------------------------
Debtor: BKMJ Properties, LLC
1233 Infinity Court
Lincoln, NE 68512
Bankruptcy Case No.: 10-40109
Chapter 11 Petition Date: January 15, 2010
Court: United States Bankruptcy Court
District of Nebraska (Lincoln Office)
Judge: Bankruptcy Judge Timothy J. Mahoney
Debtor's Counsel: David Grant Hicks, Esq.
Pollak & Hicks PC
6910 Pacific St, #216
Omaha, NE 68106
Tel: (402) 345-1717
Email: dhickslaw@aol.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
A full-text copy of the Debtor's petition, including a list of its
2 largest unsecured creditors, is available for free at:
http://bankrupt.com/misc/neb10-40109.pdf
The petition was signed by Barry S. Fowler, manager of the
Company.
BANKUNITED FINANCIAL: Has Exclusivity Extension Until April 19
--------------------------------------------------------------
Bill Rochelle at Bloomberg News reports that BankUnited Financial
Corp. received an extension until April 19 of the exclusive right
to propose a Chapter 11 plan. The Company said it can't propose a
Chapter 11 plan until a $4.9 billion claim filed by the Federal
Deposit Insurance Corp. is resolved. No objections were filed to
the request for an extension of the exclusive periods.
In a prior report, Mr. Rochelle said the FDIC lost a dispute with
the Official Committee of Unsecured Creditors for BankUnited over
who has the right to bring claims against the bank holding
company's officers and directors.
In September, the bankruptcy judge allowed the Creditors Committee
to sue managers on behalf of the holding company, although not on
any claims that belong to the FDIC as receiver for the failed bank
unit.
According to the report, the FDIC argued in a motion filed in
November last year that the committee was going too far by
asserting claims against officers and directors that belong only
to the FDIC. The Bankruptcy Court denied the FDIC's motion on
Jan. 6 to curtail claims asserted by the committee.
About BankUnited Financial
BankUnited Financial Corp. (OTC Ticker Symbol: BKUNQ) --
http://www.bankunited.com/-- was the holding company for
BankUnited FSB, the largest banking institution headquartered in
Coral Gables, Florida. On May 21, 2009, BankUnited FSB was closed
by regulators and the Federal Deposit Insurance Corporation
facilitated a sale of the bank to a management team headed by John
Kanas, a veteran of the banking industry and former head of North
Fork Bank, and a group of investors led by W.L. Ross & Co.
BankUnited, FSB, had assets of $12.8 billion and deposits of
$8.6 billion as of May 2, 2009.
The Company and its affiliates filed for Chapter 11 on May 22,
2009 (Bankr. S.D. Fla. Lead Case No. 09-19940). Stephen P.
Drobny, Esq., and Peter Levitt, Esq., at Shutts & Bowen LLP; Mark
D. Bloom, Esq., and Scott M. Grossman, Esq., at Greenberg Traurig,
LLP; and Michael C. Sontag, at Camner, Lipsitz, P.A., represent
the Debtors as counsel. Corali Lopez-Castro, Esq., David Samole,
Esq., at Kozyak Tropin & Throckmorton, P.A.; and Todd C. Meyers,
Esq., at Kilpatrick Stockton LLP, serve as counsel to the official
committee of unsecured creditors.
In its bankruptcy petition, BankUnited Financial Corp. said it has
assets of $37,729,520 against debts of $559,740,185.
Wilmington Trust Co., U.S. Bank, N.A., and the Bank of New York
were listed among the company's largest unsecured creditors in
their roles as trustees for security issues. BankUnited estimated
the Bank of New York claim tied to convertible securities at
$184 million. U.S. Bank and Wilmington Trust are owed
$120,000,000 and $118,171,000 on account of senior notes.
BASHAS' INC: Wants to Toss Out Store Lease in Phoenix & El Mirage
-----------------------------------------------------------------
Max Jarman at the Arizona Republic reports that Bashas' Inc. asked
a federal bankruptcy court to void its leases on a planned AJ'S
Fine Foods and Food City stores in Phoenix and El Mirage, Arizona,
saying it would be a financial hardship to move forward with the
new stores. The Company has notified prospective landlords of its
plan not to occupy the stores.
Bashas' Inc. is a 77-year-old grocery chain that owns 158 retail
stores located throughout Arizona. It is doing business as
National Grocery, Bashas Food, Bashas' United Drug, Food City,
Eddie's Country Store, A,.J. Fine Foods, Western Produce, Bashas'
Distribution Center, Sportsman's, and Bashas' Dine.
The Company and its affiliates filed for Chapter 11 bankruptcy
protection on July 12, 2009 (Bankr. D. Ariz. Case No. 09-16050).
Frederick J. Petersen, Esq., at Mesch, Clark & Rothschild, P.C.,
assists the Debtors in their restructuring efforts. Michael W.
Carmel, Ltd., is the Debtors' co-counsel. Deloitte Financial
Advisory LLP serves as financial advisors. Epiq Bankruptcy
Solutions, LLC, serves as claims and notice agent. In its
bankruptcy petition, Bashas' listed $100 million to $500 million
each in assets and debts.
BENDER SHIPBUILDING: Signal's $31.2-Mil. Wins Auction
-----------------------------------------------------
According reports, Signal International Inc., which provides
marine and fabrication services, won an auction for Bender
Shipbuilding & Repair Inc.'s Mobile shipyard with a $31.2 million
offer. There was a competing bidder -- Vision Technologies
Systems, parent company of Pascagoula's VT Halter Marine, which
announced in December an offer to buy the shipyard for $21
million, according to AL.COM. The sale is expected to close
January 22.
Bender Shipbuilding & Repair Co. operates a ship repair facility
in the central Gulf of Mexico. On June 9, 2009, GulfMark Offshore
Inc., Louisiana Machinery Company LLC, and Sirius Technical
Services Inc. filed an involuntary Chapter 7 petition for Bender
Shipbuilding in the U.S. Bankruptcy Court for the Southern
District of Alabama. Christian & Small LLP, and Jones Walker LLP
represent the petitioners. On July 1, 2009, the Bankruptcy Court
entered an order converting the case to Chapter 11 (Bankr. S.D.
Ala. Case No. 09-12616).
BOB STEVENS: Case Summary & 3 Largest Unsecured Creditors
---------------------------------------------------------
Debtor: Bob Stevens Appliances and T.V. Inc.
381-9 Old Riverhead Road
Westhampton Beach, NY 11978
Bankruptcy Case No.: 10-70278
Chapter 11 Petition Date: January 14, 2010
Court: United States Bankruptcy Court
Eastern District of New York (Central Islip)
Judge: Robert E. Grossman
Debtor's Counsel: Ronald D. Weiss, Esq.
734 Walt Whitman Road, Suite 203
Melville, NY 11747
Tel: (631) 271-3737
Fax: (631) 271-3784
Email: weiss@ny-bankruptcy.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $100,001 to $500,000
A full-text copy of the Debtor's petition, including a list of its
3 largest unsecured creditors, is available for free at:
http://bankrupt.com/misc/nyeb10-70278.pdf
The petition was signed by Bob Stevens, president of the Company.
BROADWAY 401: To Seek Approval of Prepack Plan on March 16
----------------------------------------------------------
Broadway 401 LLC and its affiliates are scheduled to present their
prepackaged plan for confirmation at a combined hearing scheduled
for March 16. At the hearing, the Court will also consider
approval of the disclosure statement explaining the plan. The
disclosure statement and plan were sent to creditors before the
bankruptcy filing for voting.
According to Bill Rochelle at Bloomberg, the Plan calls for
transferring ownership of a vacant 559-unit residential
development at 401 and 425 Massachusetts Avenue in Washington to
the holders of the first mortgage owed $213.6 million. With the
property estimated to be worth between $108 million and $157
million, the first lien lenders are slated to recover 50.5% to
73.5% of their claims.
Holders of $37.5 million in mezzanine debt and general unsecured
creditors owed $1.8 million are to receive nothing under the Plan.
The mortgage holders unanimously accepted the plan before filing.
Other classes of creditors were deemed to reject the Plan.
Broadway 401 LLC and its affiliates filed for Chapter 11 on
January 11, 2010 (Bankr. D. Del. Case No. 10-10070).
Broadway 401 LLC and its co-debtors Broadway Mass Associates LLC
and Broadway Mass TIC I LLC, are owned by Lazar Muller, Samuel
Weiss, Charles Herzka, David Weldler and the 1997 Neumann Family
Trust. The Debtors acquired the property located at 401
Massachusetts Ave. and 425 Massachusetts Ave. between December
2004 and January 2006 for more than $47 million. Since that time,
they've improved the properties with two 14-story residential
towers containing 559 residential condominiums. The towers are
known as "The Dumont" and are reportedly "vacant but essentially
. . . complete and ready for occupancy." Broadway 401 said it has
assets and debts of $100,000,001 to $500,000,000 in its petition.
BUILDERS FIRSTSOURCE: Stockholders Okay Changes in Incentive Plan
-----------------------------------------------------------------
Builders FirstSource Inc. said that its stockholders approved (i)
the amendment to its 2007 Incentive Plan to increase the number of
shares of common stock that may be granted pursuant to awards
under the 2007 Plan from 2,500,000 shares to 7,000,000 shares and
(ii) re-approved the list of qualified business criteria for
performance-based awards issued under the 2007 Plan in order to
preserve federal income tax deductions.
Stockholders also approved the issuance of shares of the Company's
common stock (i) in its rights offering, (ii) to JLL Partners Fund
V, L.P. and Warburg Pincus Private Equity IX, L.P. pursuant to the
Investment Agreement entered into between the Company, JLL
Partners Fund V, L.P., and Warburg Pincus Private Equity IX, L.P.
on October 23, 2009, as amended, and (ii) to holders of the 2012
Notes.
Non-employee directors, officers, and other employees, advisors,
or consultants of the Company, including certain parent and
subsidiary entities, selected by a committee of the Company's
Board of Directors are eligible to participate in the 2007 Plan,
including our principal executive officer, principal financial
officer, and other named executive officers
About Builders FirstSource
Headquartered in Dallas, Texas, Builders FirstSource Inc. --
http://www.bldr.com/-- is a supplier and manufacturer of
structural and related building products for residential new
construction. The company operates in 9 states, principally in
the southern and eastern United States, and has 55 distribution
centers and 51 manufacturing facilities, many of which are located
on the same premises as its distribution facilities.
The Company has total assets of $457,192,000 against total
liabilities of $405,038,000 as of June 30, 2009.
Builders FirstSource has corporate credit ratings of 'Caa1'
from Moody's Investors Service and 'CCC+' from Standard & Poor's.
CANWEST GLOBAL: Draws Four Potential Bidders
--------------------------------------------
Four potential suitors are weighing a hefty investment in CanWest
Global Communications Corp., but Corus Entertainment Inc., Shaw
Communications Inc., Fairfax Financial Holdings Ltd. and Jim
Pattison Group all face considerable obstacles to cutting a deal
with the owner of specialty and conventional television networks,
The Globe And Mail reported.
According to the report, CanWest's financial advisers at RBC
Dominion Securities Inc. settled on four potential bidders last
week, and are now attempting to get the best possible terms from
one of them, which would then effectively control the media
company.
The Globe And Mail said that Fairfax is allied with former
Alliance Atlantis Communications Inc. Chief Financial Officer
David Lazzarato, and co-founder and Chief Executive Officer
Michael MacMillan. Winnipeg-based CanWest acquired Alliance
Atlantis and its stable of specialty TV channels in 2007 as part
of a $2.3-billion deal, the report adds.
The report further related that RBC Dominion is running a
separate auction of CanWest's newspaper holdings, not including
the National Post. The process has begun on January 8, 2010, and
the initial round of contacts with bidders is expected to take
seven weeks.
If Fairfax were to be invited into the TV company, Mr. Lazzarato
would be named as CanWest's CEO while Mr. MacMillan would be an
adviser to the network, The Globe And Mail said. CanWest CEO
Leonard Asper and his two siblings have offered to invest up to
$15-million alongside any new investor, if needed.
The Globe And Mail added that any potential bidder faces numerous
challenges to cutting a deal with CanWest as the company has a
complex corporate structure that dates back to the Alliance
Atlantis purchase. Any transaction would also require regulatory
approval from the CRTC.
Torstar and Quebecor
Torstar Corp., the publisher of Canada's largest newspaper, and
Quebecor Inc. say they may be among potential bidders for the
insolvent newspaper assets of Canwest Global Communications Corp,
according to the Bloomberg News.
"Torstar is in the newspaper business," Bloomberg said, quoting
Torstar Chief Executive Officer David Holland. "We are prepared
to consider any opportunity close to our own operations such as
this that could further Torstar's strategic interests."
Pierre Karl Peladeau, the head of Quebecor Inc. indicated that he
would be keeping a keen eye on the legal proceedings involving
Canwest Global Communications' newspaper division, The Associated
Press reported.
"We'll be watching the proceedings," Mr. Peladeau told The
Canadian Press at the centenary celebrations for independent
Montreal newspaper Le Devoir, reports Bloomberg.
About Canwest Global
Canwest Global Communications Corp. (TSX: CGS and CGS.A) --
http://www.canwest.com/-- an international media company, is
Canada's largest media company. In addition to owning the Global
Television Network, Canwest is Canada's largest publisher of
English language daily newspapers and owns, operates and holds
substantial interests in conventional television, out-of-home
advertising, specialty cable channels, web sites and radio
stations and networks in Canada, New Zealand, Australia, Turkey,
Indonesia, Singapore, the United Kingdom and the United States.
On October 6, 2009, Canwest Global, Canwest Media Inc., Canwest
Television Limited Partnership (including Global Television,
MovieTime, DejaView and Fox Sports World), The National Post
Company and certain subsidiaries voluntarily entered into, and
successfully obtained an Order from the Ontario Superior Court of
Justice (Commercial Division) commencing proceedings under the
Companies' Creditors Arrangement Act. The CMI Entities'
commencement of these proceedings was undertaken in furtherance of
a proposed recapitalization transaction that is supported by over
70% of holders of the 8% senior subordinated notes issued by CMI.
On the same day, FTI Consulting Canada Inc., the Court-appointed
Monitor in the CCAA proceedings, sought protection in the United
States Bankruptcy Court under Chapter 15 of the United States
Bankruptcy Code (Bankr. S.D.N.Y. Lead Case No. 09-15994) for
certain of the entities involved in Canwest's television business
that filed for protection under the CCAA, including Canwest,
Canwest Media Inc. and Canwest Global Broadcasting
Inc./Radiodiffusion Canwest Global Inc.
Judge Stuart M. Bernstein presides over the Chapter 15 cases.
Evan D. Flaschen, Esq., at Bracewell & Giuliani LLP, in Hartford,
Connecticut, serves as Chapter 15 Petitioner's counsel. The
Chapter 15 Debtors disclosed estimated assets of $500 million to
$1 billion and estimated debts of $50 million to $100 million.
In a regulatory filing with the U.S. Securities and Exchange
Commission, Canwest Media disclosed C$4,847,020,000 in total
assets and C$5,826,522,000 in total liabilities at May 31, 2009.
Bankruptcy Creditors' Service, Inc., publishes Canwest Bankruptcy
News. The newsletter tracks the CCAA proceedings and Chapter 15
proceedings undertaken by Canwest Global Communications Corp. and
its affiliates (http://bankrupt.com/newsstand/or 215/945-7000).
CANWEST GLOBAL: L. Asper Opposes Early CCAA Filing for LP Units
---------------------------------------------------------------
Leonard Asper, president and CEO of Canwest Global Communications
Corp., said in a letter to the LP DIP Lenders dated January 4,
2010, that he "profoundly disagree with an early CCAA filing
by [Canwest Limited Partnership / Canwest Societe en
Commandite]".
Mr. Asper said he is particularly concerned that the filing will
result in undue and unnecessary harm to the LP's stakeholders,
many of whom are undoubtedly individuals and businesses with
longstanding relationships with the Limited Partnership.
According to Mr. Asper, the business of the LP is showing clear
signs of improvement and that he cannot see any reasonable basis
to suggest that delaying any filing could impair the position of
the Senior Lenders.
Mr. Asper said that he had great difficulty with the refusal of
the Senior Lenders to permit funding to be provided by the
Limited Partnership to the Subordinated Debtholders to pay for
their financial advisor, particularly when the Limited
Partnership has already spent over $15 million on the
restructuring alone, primarily for the advisors to the Company
and the Senior Lenders.
Mr. Asper relates that the Limited Partnership is operating
better than at any time since the abrupt declines in advertising
first occurred over 14 months ago. For the first time in 14
months, revenue for the most recent month was ahead of the same
month last year. Operating management has implemented
significant cost reductions and is focused on running the
business, rather than explaining to suppliers of 20 years or
severed employees why they are not being paid, Mr. Asper says.
The LP has requested permission of the Senior Lenders to start a
process of seeking a buyer for the LP business or seeking a party
to inject capital in order to refinance the business, or to
provide some other alternative to the current capital structure.
According to Mr. Asper, this has been refused by the Senior
Lenders consistently on the basis that a filing was imminent.
Mr. Asper said that the Senior Lenders took much longer to obtain
support for their bid and even now do not have the 2/3 necessary
to ensure that the bid would be successful should no other
alternative present itself. Thus, there will be no ability on
the part of LP to say there is any certainty in the outcome and
this by itself may cause further harm to the business, he says.
Mr. Asper asserts that it will cause more employee turnover at
the Limited Partnership and Canwest Media, Inc. Moreover, Mr.
Asper adds, a filing will crystallize in advertisers' minds the
split between CMI and the Limited Partnership, thereby affecting
revenue at the Limited Partnership by more than $20 million in
his estimation with similar damage accruing to CMI as a result.
Mr. Asper said he recently verified this with management of both
entities.
"This is because our clients at both LP and CMI are buying
advertising as if both entities will continue to sell as a group.
If and when it is no longer the case, we want to be prepared with
an alternative that minimizes the impact. As for the [Limited
Partnership] itself, projections endorsed by all advisors call
for a 10% revenue erosion in a filing."
Mr. Asper says the Company has stabilized since May 2009 and they
simply ask for further forbearance while the Company develops the
best and most comprehensive solution that is fair to all parties,
a solution that would result in a better outcome for a wider
group of stakeholders.
LP Secured Lenders Respond
In response, Jane S. Rowe, executive vice president of The Bank
of Nova Scotia, said information provided to them makes it
unclear whether Mr. Asper has the corporate authority to make the
proposals contained in his letter on behalf of either CMI or the
Limited Partnership.
Ms. Rowes asserts that the Limited Partnership is insolvent. It
is plain and obvious that it cannot support its massive debt, and
that a transaction will have to occur that fundamentally alters
the balance sheet of the newspaper business, Ms. Rowe says.
Moreover, the Limited Partnership has been in material payment
default to its various financial creditors since the end of May,
2009. It failed to pay almost $70 million in swap termination
payments due on June 1, 2009. It failed to pay more than
$30 million of interest due to its subordinated noteholders and
the Term Lenders. It also failed to make all scheduled principal
payments owed to the Senior Lenders on and after May, 2009, she
said.
About Canwest Global
Canwest Global Communications Corp. (TSX: CGS and CGS.A) --
http://www.canwest.com/-- an international media company, is
Canada's largest media company. In addition to owning the Global
Television Network, Canwest is Canada's largest publisher of
English language daily newspapers and owns, operates and holds
substantial interests in conventional television, out-of-home
advertising, specialty cable channels, web sites and radio
stations and networks in Canada, New Zealand, Australia, Turkey,
Indonesia, Singapore, the United Kingdom and the United States.
On October 6, 2009, Canwest Global, Canwest Media Inc., Canwest
Television Limited Partnership (including Global Television,
MovieTime, DejaView and Fox Sports World), The National Post
Company and certain subsidiaries voluntarily entered into, and
successfully obtained an Order from the Ontario Superior Court of
Justice (Commercial Division) commencing proceedings under the
Companies' Creditors Arrangement Act. The CMI Entities'
commencement of these proceedings was undertaken in furtherance of
a proposed recapitalization transaction that is supported by over
70% of holders of the 8% senior subordinated notes issued by CMI.
On the same day, FTI Consulting Canada Inc., the Court-appointed
Monitor in the CCAA proceedings, sought protection in the United
States Bankruptcy Court under Chapter 15 of the United States
Bankruptcy Code (Bankr. S.D.N.Y. Lead Case No. 09-15994) for
certain of the entities involved in Canwest's television business
that filed for protection under the CCAA, including Canwest,
Canwest Media Inc. and Canwest Global Broadcasting
Inc./Radiodiffusion Canwest Global Inc.
Judge Stuart M. Bernstein presides over the Chapter 15 cases.
Evan D. Flaschen, Esq., at Bracewell & Giuliani LLP, in Hartford,
Connecticut, serves as Chapter 15 Petitioner's counsel. The
Chapter 15 Debtors disclosed estimated assets of $500 million to
$1 billion and estimated debts of $50 million to $100 million.
In a regulatory filing with the U.S. Securities and Exchange
Commission, Canwest Media disclosed C$4,847,020,000 in total
assets and C$5,826,522,000 in total liabilities at May 31, 2009.
Bankruptcy Creditors' Service, Inc., publishes Canwest Bankruptcy
News. The newsletter tracks the CCAA proceedings and Chapter 15
proceedings undertaken by Canwest Global Communications Corp. and
its affiliates (http://bankrupt.com/newsstand/or 215/945-7000).
CANWEST GLOBAL: LP Entities Have FTI as CCAA Monitor
----------------------------------------------------
The Honorable Madam Justice Sarah E. Pepall of the Superior Court
of Justice (Commercial List) for the Province of Ontario, in
Canada, appointed FTI Consulting Canada Inc. as the monitor of
Canwest Limited Partnership/Canwest Societe en Commandite and
certain of its subsidiaries -- the LP Entities -- on January 8,
2010.
As an "officer of the Court", FTI Consulting is tasked to monitor
the Applicants' properties and the conduct of their business with
the powers and obligations set out under the Companies' Creditors
Arrangement Act. The Monitor is also empowered to, among other
things:
(a) monitor the LP Entities' receipts and disbursements;
(b) report to the Ontario Court at the times and intervals as
the Monitor may deem appropriate with respect to matters
relating to the LP Entities, the LP Property, the LP
Business, and other matters as may be relevant to the
proceedings;
(c) assist the LP Entities, in their dissemination, to the
McMillan Financial Advisor, the Agent and the LP DIP Agent
and its counsel of financial and other information as
agreed by and between the parties which may be used in the
proceedings;
(d) advise the LP Entities in their preparation of the LP
Entities' cash flow statements and reporting required by
the LP DIP Lender or the Agent, which information will be
reviewed with the Monitor and delivered to the McMillan,
the LP DIP Agent and the Agent in compliance with the LIP
DIP Definitive Documents and the LP Support Agreement, or
as otherwise agreed to by the LP DIP Agent or the Agent;
(e) assist CRS, Inc., and its President, Gary F. Colter, the LP
Entities' Chief Restructuring Advisor, in the performance
of its duties as set out in the LP CRA Agreement;
(f) advise the LP Entities in their development and
implementation of the LP Plan and any amendments to any
LP Plan;
(g) assist the LP Entities, to the extent required by the LP
Entities, with the holding and administering of creditors'
or shareholders' meetings for voting on the LP Plan, as
applicable;
(h) have full and complete access to the LP Property,
including the premises, books, records, data, including
data in electronic form, and other financial documents of
the LP Entities, to the extent that is necessary to
adequately assess the LP Entities' business and financial
affairs or to perform its duties arising under the Order;
(i) be at liberty to engage independent legal counselor other
persons as the Monitor deems necessary or advisable
respecting the exercise of its powers and performance of
its obligations under the Order;
(j) monitor and, if necessary, report to the Ontario Court on
any matters pertaining to the provision of the Shared
Services in accordance with the Order; and
(k) perform other duties as are required by the Order or by
the Ontario Court from time to time.
In addition to its prescribed rights and obligations under the
CCAA, the Monitor will supervise the Sale and Investor
Solicitation Process and supervise the Financial Advisor in
connection therewith. The Monitor is empowered, authorized and
directed to take actions and fulfill the roles under the SISP,
including:
(a) working with the Financial Advisor and the LP CRA to
develop a list of potential bidders to be contacted;
(b) working with the Financial Advisor, the LP CRA and counsel
for the LP Entities, who at all times are to be instructed
by the LP CRA, on the negotiation of confidentiality
agreements;
(c) working with the SISP Advisors in the preparation and
distribution of a confidential information memorandum;
(d) working with the SISP Advisors in the establishment of and
supervision of access to an electronic data room;
(e) providing the Agent and the Agent's Advisors with timely
and regular updates and information as to the progress of
the SISP, subject only to the Monitor reserving its right
not to provide information concerning the particulars of
any of the Qualified Non-Binding Indications of Interest
or Qualifying Bids until after the conduct of the vote on
the Senior Lenders CCAA Plan;
(f) in accordance with the terms of the SISP, supervising the
conduct of Phase 1, and to the extent applicable Phase 2,
of the SISP and exercising the duties, powers and
authorities to be exercised by the Monitor under the terms
of the SISP;
(g) presenting further and other recommendations to the
Special Committee as contemplated in the SISP or as may be
considered advisable by the Monitor or the LP CRA, it
being understood that subject to further Order of the
Court, the authorities and obligations of the Special
Committee in the SISP and in the operations of the LP
Entities to the extent there are any obligations, and in
the restructuring of the LP Entities generally, will only
be to deal with matters brought to it either by the
President of CPI or by the Monitor; and
(h) otherwise working with the SISP Advisors on any steps and
actions considered necessary or desirable in carrying out
the SISP.
The Monitor will not take possession of the LP Property and will
take no part whatsoever in the management or supervision of the
management of the LP Business and will not, by fulfilling its
obligations, be deemed to have taken or maintained possession or
control of the LP Business or the LP Property, or any part of it.
The Monitor will not, as a result of the Order or anything done
in pursuance of the Monitor's duties and powers, be deemed to
be in possession of any of the LP Property within the meaning of
any Environmental Legislation, unless it is actually in
possession.
The Monitor will incur no liability or obligation as a result of
its appointment or the carrying out of the provisions of the
Order, save and except for any gross negligence or willful
misconduct on its part.
The Monitor, counsel to the Monitor, counsel to the LP
Entities, counsel and the financial advisor to the Special
Committee, the LP CRA, and counsel to the LP CRA will be entitled
to the benefit of and are granted a charge on the LP Property,
which charge will not exceed an aggregate amount of C$3,000,000,
as security for their reasonable professional fees and
disbursements incurred at their standard rates and charges in
respect of the services, both before and after the
making of the Order.
About Canwest Global
Canwest Global Communications Corp. (TSX: CGS and CGS.A) --
http://www.canwest.com/-- an international media company, is
Canada's largest media company. In addition to owning the Global
Television Network, Canwest is Canada's largest publisher of
English language daily newspapers and owns, operates and holds
substantial interests in conventional television, out-of-home
advertising, specialty cable channels, web sites and radio
stations and networks in Canada, New Zealand, Australia, Turkey,
Indonesia, Singapore, the United Kingdom and the United States.
On October 6, 2009, Canwest Global, Canwest Media Inc., Canwest
Television Limited Partnership (including Global Television,
MovieTime, DejaView and Fox Sports World), The National Post
Company and certain subsidiaries voluntarily entered into, and
successfully obtained an Order from the Ontario Superior Court of
Justice (Commercial Division) commencing proceedings under the
Companies' Creditors Arrangement Act. The CMI Entities'
commencement of these proceedings was undertaken in furtherance of
a proposed recapitalization transaction that is supported by over
70% of holders of the 8% senior subordinated notes issued by CMI.
On the same day, FTI Consulting Canada Inc., the Court-appointed
Monitor in the CCAA proceedings, sought protection in the United
States Bankruptcy Court under Chapter 15 of the United States
Bankruptcy Code (Bankr. S.D.N.Y. Lead Case No. 09-15994) for
certain of the entities involved in Canwest's television business
that filed for protection under the CCAA, including Canwest,
Canwest Media Inc. and Canwest Global Broadcasting
Inc./Radiodiffusion Canwest Global Inc.
Judge Stuart M. Bernstein presides over the Chapter 15 cases.
Evan D. Flaschen, Esq., at Bracewell & Giuliani LLP, in Hartford,
Connecticut, serves as Chapter 15 Petitioner's counsel. The
Chapter 15 Debtors disclosed estimated assets of $500 million to
$1 billion and estimated debts of $50 million to $100 million.
In a regulatory filing with the U.S. Securities and Exchange
Commission, Canwest Media disclosed C$4,847,020,000 in total
assets and C$5,826,522,000 in total liabilities at May 31, 2009.
Bankruptcy Creditors' Service, Inc., publishes Canwest Bankruptcy
News. The newsletter tracks the CCAA proceedings and Chapter 15
proceedings undertaken by Canwest Global Communications Corp. and
its affiliates (http://bankrupt.com/newsstand/or 215/945-7000).
CASCADE ACCEPTANCE: Wants Access to Bank of Marin Cash Collateral
-----------------------------------------------------------------
Cascade Acceptance Corporation asks the U.S. Bankruptcy Court for
the Northern District of California for authorization to:
-- use cash securing repayment of loan with Bank of Marin; and
-- grant adequate protection to Bank of Marin.
The Debtor relates that Bank of Marin asserts certain liens on the
real property located at 2559 Butch Drive, Gilroy, California,
6465 San Pablo Avenue, Oakland, California, and at 6501 San Pablo
Avenue, Oakland, California, pursuant to these loan documents:
i) a note and deed of trust in the original amount of
$1,400,000;
ii) a note and deed of trust in the original amount of
$6,000,000; and
iii) a note and deed of trust in the original amount of
$3,120,000.
The Debtor requires immediate use of the cash collateral to pay
necessary expenses for its real property.
As adequate protection for any diminution in value of the lenders'
collateral, the Debtors will grant the Bank of Marin a replacement
lien and a superpriority administrative expense claim.
About Cascade Acceptance Corporation
Mill Valley, California-based Cascade Acceptance Corporation filed
for Chapter 11 bankruptcy protection on November 23, 2009 (Bankr.
N.D. Calif. Case No. 09-13960). Douglas B. Provencher, Esq., at
Law Offices of Provencher and Flatt assists the Company in its
restructuring effort. The Company listed $50,000,001 to
$100,000,000 in assets and debts.
CATHOLIC CHURCH: Committee Objects to Pension for Accused Priests
-----------------------------------------------------------------
The Catholic Diocese of Wilmington, Inc., is seeking authority
from the U.S. Bankruptcy Court for the District of Delaware to:
(a) continue providing pensions, sustenance and medical
coverage in the ordinary course to certain priests accused
of sexual abuse of minors; and
(b) use certain restricted funds for the payment of
prepetition pension obligations and certain housing and
health costs for retired priests.
The Official Committee of Unsecured Creditors of the Catholic
Diocese of Wilmington, Inc., asks the U.S. Bankruptcy Court for
the District of Delaware to deny Wilmington's request for approval
to continue providing pensions, sustenance and medical coverage in
the ordinary course to certain priests accused of sexual abuse of
minors, and use certain restricted funds for the payment of
prepetition pension obligations and certain housing and health
costs for retired priests.
Laura Davis Jones, Esq., at Pachulski Stang Ziehl & Jones LLP, in
Wilmington, Delaware, relates that the request can be divided into
three requests:
(1) a request to pay the "pensions" of three abuser priests,
Revs. James E. Richardson, Douglas W. Dempster, and John
A. Sarro;
(2) a request to pay "sustenance" to three abuser priests,
Revs. Joseph A. McGovern, Kenneth J. 1, and Charles
W. Wiggins; and
(3) a request to pay the medical premiums of a laicized
predator and felon, Francis G. DeLuca.
Third Circuit law is clear that claims to pension benefits that
vested prepetition are prepetition claims that cannot be paid
outside of a plan of reorganization, Ms. Jones contends. Besides,
she notes, Rev. Richardson is the only one of the three Pension
Claimants, who even qualified for retirement. She alleges that
the other two did not qualify for pensions but received them
anyway.
With respect to the Severance Claims, Ms. Jones discloses that
Rev. McGovern extracted an agreement from the Diocese, pursuant to
which McGovern stopped fighting his removal from public ministry
in exchange for payments from the Diocese. She contends that the
Court should not authorize the Diocese to pay Rev. McGovern's
claim under the prepetition settlement. She adds that he is a
highly-educated, relatively young man, who does not need
sustenance.
The Creditors Committee also asks the Court to compel the Diocese
to produce all documents concerning Rev. Martin's eligibility to
receive sustenance payments from the Diocese.
With respect to Rev. DeLuca, Ms. Jones argues that the medical
premiums that the Diocese seeks to continue are "a holdover" from
the Diocese's admitted scheme to cover up his crimes. Rev. DeLuca
was removed from public ministry in 1993 after having abused
hundreds of children.
When viewed from the proper perspective, the theory of "ordinary
course," which the Diocese relies on heavily to justify paying the
Pension Claims, the Severance Claims and the DeLuca Payments, is
inapposite, Ms. Jones asserts. She insists that business judgment
does not apply to the request because the Diocese is not trying to
preserve its operations and its reorganizational value for the
benefit of creditors. "It is simply seeking to further its
admitted prepetition cover-up by spending estate resources," she
tells Judge Sontchi.
The Diocese states that it can pay the Pension Claims because it
intends to use funds that are held in trust and otherwise
restricted for the benefit of retired priests, Ms. Jones relates.
She argues that there is no evidence that the fund is held in
trust. She explains that the Catholic Diocese Foundation, which
transferred the seed money, a $1 million bequest from Anna V.
Graham for the priest pension fund, did not send the money "in
trust." Ms. Graham's will states that the money could be used for
"any purpose," and when the money was transferred for the pension
fund, the Diocese had not decided to create a trust. Ms. Jones
further contends that there is no evidence that the funds are
restricted because the donor did not restrict how the Diocese
could use those funds.
While the Kenney Foundation did restrict the use of funds to the
"aged and sick" members of the Diocese, the Diocese has not
honored that restriction, Ms. Jones alleges. She points out that
either Rev. DeLuca nor Rev. Dempster was aged or sick when the
Diocese used the priest fund to finance their faux retirement, and
Rev. Sarro was too young to even qualify for a pension when they
gave it to him -- let alone was he "aged and sick."
Jacobs & Crumplar, P.A., and The Neuberger Firm, P.A., which firms
represent many unsecured creditors asserting personal injury
claims against the Diocese, join in the Creditors Committee's
objection.
The Court will consider the request to pay pension on February 22
and 23, 2010. Judge Sontchi previously denied the Diocese's
request for a shortened notice period.
Creditors Committee Seeks Documents
The Creditors Committee asks the Court to (i) compel the
production of certain documents, which relate to the Pension
Motion, (ii) grant the Creditors Committee leave to supplement its
opposition to the Pension Motion, and (iii) continue the hearing
date on the Pension Motion to allow the Creditors Committee time
to supplement the Opposition and to allow the Diocese time to
reply to the supplemental Opposition.
Specifically, the Creditors Committee wants the Diocese to produce
the personnel file of Charles W. Wiggins, the medical and
financial information regarding John A. Saro, the three Sustenance
Claimants, and Francis G. DeLuca, and the specific redacted
materials from the personnel file of Joseph A. McGovern.
The Diocese has not produced the personnel files of two of the
Sustenance Claimants, Revs. Martin and Wiggins, Ms. Jones relates.
She alleges that the Diocese has also withheld certain documents
from the personnel file of Rev. McGovern, another Sustenance
Claimant. She adds that the Diocese has not produced any
financial or medical records that would indicate whether the
Sustenance Claimants or Rev. DeLuca are really "in need." The
Diocese did not also produce the personnel file of one of the
Pension Claimants, Rev. Sarro, until the day after the Opposition
was filed.
Nonetheless, the Creditors Committee says that it timely filed its
Opposition based on the facts that were available to it. Even
though it believes that it has roundly discredited the Pension
Motion, both on the law and the facts, the Creditors Committee
asserts that there are additional sets of information that it is
entitled to review and present to the Court in a supplemental
Opposition.
The Creditors Committee also asks the Court to shorten the notice
period of its Motion to Compel.
Pamela Egan Singer, Esq., at Pachulski Stang, files an affidavit
in support of the Motion to Compel.
Motion to Compel Should Be Denied,
Diocese Contends
Section 363(c)(1) of the Bankruptcy Code expressly authorizes the
Diocese to use property of the estate in the ordinary course of
business without notice or a hearing, James L. Patton, Jr., Esq.,
at Young Conaway Stargatt & Taylor, LLP, in Wilmington, Delaware,
tells the Court. Thus, he asserts, if not for the Diocese's
agreement on the record of the first-day hearing in the bankruptcy
case not to make any payments to anyone -- priest, former priest,
or layperson -- accused of abuse unless permission was sought from
and granted by the Court, the Diocese would not have been required
to seek authority from the Court to make the pension payments.
Despite the Unofficial Creditors Committee's suggestion in its
papers and argument at the first-day hearing that payments to
priests or former priests accused of abuse were per se violative
of bankruptcy law, the Creditors Committee's Opposition fails to
explain why payments to the Accused Abusers should be subjected to
a legal standard other than the "vertical" and "horizontal"
standards applicable to the use of property of the estate in the
ordinary course, Mr. Patton contends. Rather than tackle the
applicable legal standard, he argues that the Creditors Committee
questions the Diocese's stated motives regarding payments and
other benefits to the Accused Abusers, accuses the Diocese of
conspiracy and cover-up, and invites the Court to pass judgment
upon, or perhaps to require the Diocese to obtain the advice and
consent of the Creditors Committee with respect to, the Diocese's
determinations of the nature and extent of its obligations to care
for retired and former clergy.
The Diocese has an affirmative obligation to care for its retired
clergy under Canon Law, the law of the Roman Catholic Church,
which governs the conduct of the Catholic faithful, including the
Diocese, Mr. Patton tells the Court. He points out that Canon Law
is the code by which the Diocese conducts not only the pastoral
services it provides to the faithful and to the community at
large, but also its relationships with its clergy, including to
its obligations to removed and retired priests.
As a threshold matter, Mr. Patton contends that many of the
documents sought by the Creditors Committee relate primarily to
its arguments that the Diocese does not have an obligation under
Canon Law to support the subject priests, that the Diocese is
lying about its reasons for supporting these priests, or that the
Diocese is not applying, or perhaps cannot be trusted to apply,
Canon Law properly as to who is deserving of sustenance. These
arguments, however, he adds, invite impermissible intrusion into
the Diocese's determinations with respect to and compliance with
its canonical responsibilities, in direct conflict with the
"Religion Clauses" of the First Amendment of the U.S. Constitution
and the Religious Freedom Restoration Act of 1993.
Nevertheless, even understanding that the "relevance" threshold
for discovery purposes is lower than for evidentiary purposes,
there is no need to compel the Diocese to produce any documents
beyond what already has been produced, and what may be produced
following adjudication of the pending requests regarding priest
files, Mr. Patton asserts.
Contrary to the Creditors Committee's representations, Mr. Patton
argues that the Diocese has cooperated, and will continue to
cooperate, in the discovery process, and that it began producing
documents responsive to the Creditors Committee's informal request
within days after it was made, contrary to the Creditors
Committee's representation that request was "ignored." He adds
that the Diocese has produced thousands of documents responsive to
the Creditors Committee's informal and formal discovery requests,
and will continue to produce documents, except for those, which
are subject to assertions of confidentiality and privilege pending
authorization.
Martin Responds
Rev. Martin tells Judge Sontchi that he wishes to ease the burden
of the Court, the Diocese and the Creditors Committee by waiving
any and all claims he may have to any sustenance whatsoever, which
the Diocese seeks to pay by way of the request, or may be required
to pay by way of any Canonical proceedings that may be pending
between him and the Diocese. He previously sent a letter to the
Court asking for extension to file his response.
As a result of the waiver, Rev. Martin believes that there will be
no legal basis for the Diocese to produce his personnel file to
the Creditors Committee, and that the Creditors Committee
implicitly agrees with this position.
Rev. Martin also seeks a protective order from disclosure of his
personnel records. He contends that a level of privacy protection
exists for sensitive personal information contained in his
personnel records. Hence, he argues, release of the information
can cause embarrassment, annoyance or undue burden.
It is within the Court's power to grant him protection from
disclosure, and it is the Creditors Committee's burden to offer
proof that the protective order will substantially harm its
ability to collect the evidence necessary for the prosecution of
its claim, Rev. Martin asserts. Under the circumstances in the
dispute, he notes that as he is waiving his right to sustenance,
the Creditors Committee cannot meet its burden to compel
disclosure, and therefore, the Motion to Compel should be denied.
Martin's Sustenance Should Be Withdrawn
The Creditors Committee tells Judge Sontchi that it would withdraw
the portion of its request to produce documents relating to the
Rev. Martin's personnel file, while reserving all rights for
production at a future time if necessary, if the Diocese would
formally withdraw his sustenance from the Pension Motion.
The Diocese, however, has not withdrawn its request to pay
sustenance to Rev. Martin, Ms. Jones informs Judge Sontchi.
Accordingly, the Creditors Committee pursues its request for
production of the Martin Personnel File, and opposes Rev. Martin's
Motion for Protective Order.
Rev. Martin's only ground for seeking a protective order is a
claim of a "privacy interest" in his entire personnel file, Ms.
Jones relates. However, she argues, he fails to establish the
requisite "good cause" for issuance of a protective order because
federal law does not recognize any privacy privilege in personnel
files.
Therefore, should the Diocese refuse to withdraw its request to
pay sustenance to Rev. Martin, the Creditors Committee says it
will maintain its position that the Martin Personnel File is not
subject to protection from discovery and should be produced to the
Creditors Committee.
About the Diocese of Wilmington
The Diocese of Wilmington covers Delaware and the Eastern Shore of
Maryland and serves about 230,000 Catholics. The Delaware diocese
is the seventh Roman Catholic diocese to file for Chapter 11
protection to deal with lawsuits for sexual abuse. Previous
filings were by the dioceses in Spokane, Washington; Portland,
Oregon; Tucson, Arizona; Davenport, Iowa, Fairbanks, Alaska; and
San Diego, California.
The bankruptcy filing automatically stayed eight consecutive abuse
trials scheduled in Delaware scheduled to begin October 19. There
are 131 cases filed against the Diocese, with 30 scheduled for
trial.
The Diocese filed for Chapter 11 on Oct. 18, 2009 (Bankr. D. Del.
Case No. 09-13560). Attorneys at Young Conaway Stargatt & Taylor,
LLP, serve as counsel to the Diocese. The Ramaekers Group, LLC is
the financial advisor. The petition says assets range $50,000,001
to $100,000,000 while debts are between $100,000,001 to
$500,000,000. (Catholic Church Bankruptcy News; Bankruptcy
Creditors' Service, Inc., http://bankrupt.com/newsstand/or
215/945-7000).
CATHOLIC CHURCH: Wilm. Wants Automatic Stay Extended to Parishes
----------------------------------------------------------------
The Catholic Diocese of Wilmington, Inc., asks the U.S. Bankruptcy
Court for the District of Delaware, under Section 105 of the
Bankruptcy Code, to extend the automatic stay to certain parishes
to prevent the continued prosecution of all pending actions
arising under the Delaware Child Victim's Act of 2007, in which
the Diocese and a parish are co-defendants. The Diocese seeks to
stay the actions in their entirety until 60 days after the
deadline for creditors to file prepetition claims in the Chapter
11 case, without prejudice to the Diocese's right to seek a
further extension of the stay. The Official Committee of
Unsecured Creditors consented to the request.
James L. Patton, Jr., Esq., at Young Conaway Stargatt & Taylor,
LLP, in Wilmington, Delaware, asserts that it is the Diocese's
goal to treat all creditors equitably and to develop a process for
a fair distribution of its assets, Mr. Patton asserts. He
contends that it would be to the detriment of all other creditors,
including the other child sex abuse claimants, to permit the
Parish Co-Defendant Cases to continue against the non-debtor
defendants at this time.
If the automatic stay is not extended to the Parishes, the Diocese
and its bankruptcy estate will be irreparably harmed, and the
purposes and policies of the Bankruptcy Code will be frustrated
because, among other reasons:
(a) the continued prosecution of the Parish Co-Defendant Cases
would violate Section 362(a) of the Bankruptcy Code by
depleting the estate's assets, thus, causing irreparable
adverse impact on the estate to the detriment of other
creditors;
(b) the Diocese could be subject to substantial and
prejudicial collateral estoppel risks, which will
effectively compel the Diocese to monitor and participate
in the Parish Co-Defendant Cases, including engaging in
extensive discovery and trial preparation, resulting in
substantial costs to the estate, and irreparable harm to
its ability to reorganize by distracting key personnel,
who are needed to participate in the Diocese's
reorganization process;
(c) judgments against the Parishes in the Parish Co-Defendant
Cases could increase the likelihood of a judgment against
the Diocese, not only because of the collateral estoppel
issues, but also because the Parishes have asserted cross-
claims for contribution against the Diocese in each Case,
and the Diocese would potentially have to indemnify the
Parishes and other Non-Debtor Parties pursuant to agency
principles; and
(d) the claims in more than 20 of the Parish Co-Defendant
Cases are covered by insurance policies, which cover not
only the Diocese but also the Parishes in those Cases, and
so any proceeds paid to cover the Parishes for losses
incurred in connection with the Parish Co-Defendant Cases
will directly reduce the amount of proceeds available to
the Diocese, thus, consuming an asset of the estate to the
detriment of other creditors.
Rogers Objects
Creditor Francis J. Rogers contends that the request seeks to
impose on him a Court order that impinges on his rights without
giving him due process. He adds that the request will deprive him
the ability to review his personnel file and object to its release
in possible violation of federal law and evidentiary privileges.
Mr. Rogers is a co-defendant with the Diocese and Parish
Immaculate Heart of Mary in a child sexual abuse action pending in
the Delaware Superior Court captioned Jane Soe #1 and Est. of John
Soe #1 v. Catholic Diocese of Wilmington, Inc., Immaculate heart
of Mary Roman Catholic Church and Francis J. Rogers.
Prior to his entry of appearance in the bankruptcy case, Mr.
Rogers relates, the Diocese filed an adversary proceeding against
John Michael Vai, et al., seeking declaratory relief, an
injunction, and a temporary restraining order to halt the
prosecution of eight state court actions against three of the
Diocese's parishes. The parties in that proceeding apparently
have reached an agreement and proposed a stipulation to resolve
the issue of whether or not the State Court Actions named in the
proceeding will go forward. Without notice or hearing, he
alleges, the Diocese and the parties to the stipulation seek to
include in the scope of the proposed stipulation all cases
involving the parishes.
Because he was not provided notice and opportunity to be heard,
the Diocese, in agreeing to release his personnel file, has denied
him his basic due process rights guaranteed by the Fifth and
Fourteenth Amendments of the U.S. Constitution, Mr. Rogers argues,
among other things. Therefore, he asks the Court to provide him
an opportunity to review his personnel file before it is released
pursuant to the proposed stipulation, deny the request until he is
provided with information regarding insurance coverage available
to him, and award him reasonable attorney fees and costs in
preparing his objection.
About the Diocese of Wilmington
The Diocese of Wilmington covers Delaware and the Eastern Shore of
Maryland and serves about 230,000 Catholics. The Delaware diocese
is the seventh Roman Catholic diocese to file for Chapter 11
protection to deal with lawsuits for sexual abuse. Previous
filings were by the dioceses in Spokane, Washington; Portland,
Oregon; Tucson, Arizona; Davenport, Iowa, Fairbanks, Alaska; and
San Diego, California.
The bankruptcy filing automatically stayed eight consecutive abuse
trials scheduled in Delaware scheduled to begin October 19. There
are 131 cases filed against the Diocese, with 30 scheduled for
trial.
The Diocese filed for Chapter 11 on Oct. 18, 2009 (Bankr. D. Del.
Case No. 09-13560). Attorneys at Young Conaway Stargatt & Taylor,
LLP, serve as counsel to the Diocese. The Ramaekers Group, LLC is
the financial advisor. The petition says assets range $50,000,001
to $100,000,000 while debts are between $100,000,001 to
$500,000,000. (Catholic Church Bankruptcy News; Bankruptcy
Creditors' Service, Inc., http://bankrupt.com/newsstand/or
215/945-7000).
CATHOLIC CHURCH: Wilmington Wants Removal Period Until May 17
-------------------------------------------------------------
The Catholic Diocese of Wilmington, Inc., asks the U.S. Bankruptcy
Court for the District of Delaware to extend to May 17, 2010, the
deadline for filing notices of removal of civil actions pending as
of its Petition Date.
Section 1452(a) of the Bankruptcy Code provides that a party may
remove any claim or cause of action in a civil action to the
district court for the district where that civil action is
pending. In accordance with Rule 9027 of the Federal Rules of
Bankruptcy Procedure, a notice of removal may be filed in the
bankruptcy court within (i) 90 days after the Petition Date, (ii)
30 days after the entry of a stay termination ruling, or (iii) 30
days after a trustee qualifies in a Chapter 11 case but not later
than 180 days after the Petition Date. With cause, however, the
Court may extend a debtor's removal period.
Since the filing of the bankruptcy case less than three months
ago, the Diocese has been focused on achieving a smooth transition
into Chapter 11, while at the same time focusing on other time
sensitive aspects of the case, relates James L. Patton, Jr., Esq.,
at Young Conaway Stargatt & Taylor, LLP, in Wilmington, Delaware.
Among other significant tasks that the Diocese has undertaken in
the short time that has passed since the Petition Date, the
Diocese has:
(a) been responding to numerous discovery requests and
preparing to litigate its contested motion to provide
pensions and related relief to certain retired or removed
priests accused of sexual abuse;
(b) been responding to numerous discovery requests and
preparing for the trial currently scheduled for
February 22, 2010, regarding the ownership of certain pooled
investment funds;
(c) been otherwise responding to the Official Committee of
Unsecured Creditors' requests for information;
(d) filed its schedules of assets and liabilities and
statement of financial affairs; and
(e) complied with its reporting requirements.
As a result, to date, the Diocese has not had a sufficient
opportunity to address whether any Actions to which it is a party
should be removed, and thus, the Diocese requires additional time
to consider filing notices of removal in connection with the
Actions, Mr. Patton contends. Accordingly, the Diocese seeks
extension of the current deadline to protect its right to remove
any of the Actions.
The Diocese submits that granting it additional opportunity to
consider removal of the Actions will assure that its decisions are
fully informed and consistent with the best interests of its
bankruptcy estate. The Diocese assures the Court that nothing in
its extension request will prejudice any party to a proceeding
that the Diocese may ultimately seek to remove from seeking the
remand of the action under Section 1452(b) of the Judicial and
Judiciary Procedures Code at the appropriate time.
Judge Sontchi will convene a hearing on February 8, 2010, at
9:00 a.m., to consider the Debtors' request. Pursuant to
Del.Bankr.L.R. 9006-2, the Diocese's Removal Period is
automatically extended until the conclusion of that hearing.
About the Diocese of Wilmington
The Diocese of Wilmington covers Delaware and the Eastern Shore of
Maryland and serves about 230,000 Catholics. The Delaware diocese
is the seventh Roman Catholic diocese to file for Chapter 11
protection to deal with lawsuits for sexual abuse. Previous
filings were by the dioceses in Spokane, Washington; Portland,
Oregon; Tucson, Arizona; Davenport, Iowa, Fairbanks, Alaska; and
San Diego, California.
The bankruptcy filing automatically stayed eight consecutive abuse
trials scheduled in Delaware scheduled to begin October 19. There
are 131 cases filed against the Diocese, with 30 scheduled for
trial.
The Diocese filed for Chapter 11 on October 18, 2009 (Bankr. D.
Del. Case No. 09-13560). Attorneys at Young Conaway Stargatt &
Taylor, LLP, serve as counsel to the Diocese. The Ramaekers
Group, LLC, is the financial advisor. The petition says assets
range $50,000,001 to $100,000,000 while debts are between
$100,000,001 to $500,000,000. (Catholic Church Bankruptcy News;
Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000).
CENTRAL METAL: Schedules Filing Deadline Moved to Feb. 2
--------------------------------------------------------
The U.S. Bankruptcy Court for the Central District of California
has extended, at the behest of Central Metal, Inc., the deadline
to file schedules of assets and liabilities and statement of
financial affairs until February 2, 2010.
The Debtor said that it would be extremely difficult for the
Debtor to complete its schedules, statement, and credit matrix
accurately by the January 22, 2010 initial deadline, as it will
take significant time and effort on the Debtor's accounting and
operations staff, who must continue to handle its normal
accounting and business operation responsibilities, and C.T.
Moffitt & Company -- the Debtor's financial advisor -- and chief
restructuring officer Charles T. Moffitt, who are in the process
of getting "up to speed" regarding the Debtor's operations and
accounting practices, to sort through the Debtor's business
records to identify and compile the information necessary to
accurately complete the Debtor's schedules, statement and matrix.
Huntington Park, California-based Central Metal, Inc., is a fully
integrated scrap metal processing company that purchases,
processes and sells ferrous and non-ferrous metals domestically
and internationally. The Company is one of the largest processing
companies on the West Coast, has one of the largest land sites and
processing capacities, and is fully diversified in its business
portfolio that entails dynamic trading relationships with renowned
metal manufacturers around the world.
The Company filed for Chapter 11 bankruptcy protection on
January 8, 2010 (Bankr. C.D. Calif. Case No. 10-10642). Juliet Y.
Oh, Esq., who has an office in Los Angeles, California, assists
the Company in its restructuring effort. The Company listed
$10,000,001 to $50,000,000 in assets and $10,000,001 to
$50,000,000 in liabilities.
CENTRAL METAL: Sec. 341 Creditors Meeting Set for Feb. 9
--------------------------------------------------------
The U.S. Trustee for Region 16 will convene a meeting of Central
Metal, Inc.'s creditors on February 9, 2010, at 11:00 a.m. at 725
S Figueroa St., Room 2610, Los Angeles, CA 90017.
This is the first meeting of creditors required under Section
341(a) of the U.S. Bankruptcy Code in all bankruptcy cases.
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 office of the
Debtor under oath about the company's financial affairs and
operations that would be of interest to the general body of
creditors.
Huntington Park, California-based Central Metal, Inc., is a fully
integrated scrap metal processing company that purchases,
processes and sells ferrous and non-ferrous metals domestically
and internationally. The Company is one of the largest processing
companies on the West Coast, has one of the largest land sites and
processing capacities, and is fully diversified in its business
portfolio that entails dynamic trading relationships with renowned
metal manufacturers around the world.
The Company filed for Chapter 11 bankruptcy protection on
January 8, 2010 (Bankr. C.D. Calif. Case No. 10-10642). Juliet Y.
Oh, Esq., who has an office in Los Angeles, California, assists
the Company in its restructuring effort. The Company listed
$10,000,001 to $50,000,000 in assets and $10,000,001 to
$50,000,000 in liabilities.
CENTRAL METAL: Taps Levene Neale as Bankruptcy Counsel
------------------------------------------------------
Central Metal, Inc., has sought authorization from the U.S.
Bankruptcy Court for the Central District of California to employ
Levene, Neale, Bender, Rankin & Brill L.L.P. as bankruptcy counsel
Monica Y. Kim, a partner of LNBRB, says that the firm will, among
other things:
a. represent the Debtor in any proceeding or hearing in the
Court involving its estate unless the Debtor is
represented in such proceeding or hearing by other special
counsel;
b. prepare and assist the Debtor in the preparation of
reports, applications, pleadings and orders including, but
not limited to, applications to employ professionals,
interim statements and operating reports, initial filing
requirements, schedules and statement of financial
affairs, lease pleadings, cash collateral pleadings,
financing pleadings, and pleadings with respect to the
Debtor's use, sale or lease of property outside the
ordinary course of business;
c. represent the Debtor with regard to obtaining use of
debtor in possession financing and/or cash collateral
including, but not limited to, negotiating and seeking
court approval of any debtor in possession financing
and/or cash collateral pleading or stipulation and
preparing any pleadings relating to obtaining use of
debtor in possession financing and/or cash collateral;
and
d. assist the Debtor in the negotiation, formulation,
preparation and confirmation of a plan of reorganization
and the preparation and approval of a disclosure statement
in respect of the plan.
Ms. Kim says that LNBRB will be paid based on the hourly rates of
its personnel:
Monica Y. Kim $540
Juliet Y. Oh $485
David W. Levene $585
David L. Neale $585
Ron Bender $585
Martin J. Brill $585
Lawrence A. Diamant $585
Edward M. Wolkowitz $585
Timothy J. Yoo $585
David B. Golubchik $540
Beth Ann R. Young $540
Daniel H. Reiss $540
Irving M. Gross $540
Philip A. Gasteier $540
Jacqueline L. Rodriguez $485
Michelle S. Grimberg $485
Todd M. Arnold $485
Todd A. Frealy $485
Anthony A. Friedman $415
Carmela T. Pagay $415
Tania M. Moyron $335
Natella Royzman $335
John-Patrick M. Fritz $335
Krikor J. Meshefejian $335
Paraprofessionals $195
The Debtor expects that Monica Y. Kim and Juliet Y. will be the
primary attorneys at LNBRB responsible for the representation of
the Debtor during its Chapter 11 case.
Ms. Kim assures the Court that LNBRB is "disinterested" as that
term is defined in Section 101(14) of the Bankruptcy Code.
Huntington Park, California-based Central Metal, Inc., is a fully
integrated scrap metal processing company that purchases,
processes and sells ferrous and non-ferrous metals domestically
and internationally. The Company is one of the largest processing
companies on the West Coast, has one of the largest land sites and
processing capacities, and is fully diversified in its business
portfolio that entails dynamic trading relationships with renowned
metal manufacturers around the world.
The Company filed for Chapter 11 bankruptcy protection on
January 8, 2010 (Bankr. C.D. Calif. Case No. 10-10642). Juliet Y.
Oh, Esq., who has an office in Los Angeles, California, assists
the Company in its restructuring effort. The Company listed
$10,000,001 to $50,000,000 in assets and $10,000,001 to
$50,000,000 in liabilities.
CENTRAL METAL: Taps Charles Moffitt as Chief Restructuring Officer
------------------------------------------------------------------
Central Metal, Inc., has asked for approval from the U.S.
Bankruptcy Court for the Central District of California to hire
Charles T. Moffitt as Chief Restructuring Officer and C.T. Moffitt
& Company as financial advisor, effective as of the Debtor's
Chapter 11 filing date.
Mr. Moffitt will, among other things:
a. promptly undertake an independent analysis and review of
the Debtor's business and operations, including the
Debtor's cash management and financial and accounting
controls of the business;
b. ensure the proper reporting and depositing into the debtor
in possession bank accounts of all collections and
payments including any cash collections or payments;
c. oversee and review the preparation of financial data and
reports including the Debtor's cash flow projections; and
d. providing other financial advisory, turnaround and
restructuring services as needed by the Debtor.
CTMC will be paid based on the hourly rates of its personnel:
Charles T. Moffitt $410
Andrew C. Harvey $375
David Adams $350
Other Associates $150-$375
Charles T. Moffitt, the managing partner of CTMC, assures the
Court that the firm is "disinterested" as that term is defined in
Section 101(14) of the Bankruptcy Code.
Huntington Park, California-based Central Metal, Inc., is a fully
integrated scrap metal processing company that purchases,
processes and sells ferrous and non-ferrous metals domestically
and internationally. The Company is one of the largest processing
companies on the West Coast, has one of the largest land sites and
processing capacities, and is fully diversified in its business
portfolio that entails dynamic trading relationships with renowned
metal manufacturers around the world.
The Company filed for Chapter 11 bankruptcy protection on
January 8, 2010 (Bankr. C.D. Calif. Case No. 10-10642). Juliet Y.
Oh, Esq., who has an office in Los Angeles, California, assists
the Company in its restructuring effort. The Company listed
$10,000,001 to $50,000,000 in assets and $10,000,001 to
$50,000,000 in liabilities.
CHAMPION ENTERPRISES: Signs Deal to Sell to Investor Group
----------------------------------------------------------
Champion Enterprises, Inc. (Pink Sheets: CJHBQ) has entered into a
letter of intent with a group of investors for the sale of
substantially all of its domestic and international operations.
In connection with the proposed transaction, an investor group
consisting of Centerbridge Partners, L.P., MAK Capital Fund LP and
Sankaty Advisors, LLC will invest $50 million in new capital to
support the operations and growth initiatives of the new company.
The proposed transaction, which is subject to approval by the
Bankruptcy Court, is supported by a group of Champion's current
lenders who, together with the lead investors, have agreed in the
letter of intent to exchange 100 percent of existing debt under
Champion's pre-petition and debtor-in-possession senior secured
credit agreements for equity in the new company and a $40 million
senior secured five year note. The letter of intent also
contemplates, among other things, the assumption of certain
liabilities by the buyer, to be further described in the asset
purchase agreement between the parties.
Qualified bidders will have an opportunity to submit higher and
better offers through a bidding process which the Company has
submitted to the Bankruptcy Court for approval and which
contemplates that the bidding process will be completed on or
about March 1, 2010. The proposed transaction is scheduled to
close on or before March 18, 2010.
"This transaction represents very positive news for our customers,
employees and other business partners," said William C. Griffiths,
Chairman, President and Chief Executive Officer of Champion
Enterprises, Inc. "Upon completion of the transaction, our
business will be significantly deleveraged and, as a result,
positioned to capitalize on our strong market presence and many
years of operational improvements. The infusion of new capital
will also allow us to fund growth initiatives as the housing
markets begin to recover."
About Centerbridge
Centerbridge Partners was established in 2006 and currently has
approximately $10 billion in capital under management across
several funds. The firm is dedicated to partnering with world
class management teams to invest across multiple stages of a
company's life cycle and to employ various strategies to help
companies achieve their operating and financial objectives.
Centerbridge's limited partners include many of the world's most
prominent financial institutions, university endowments, pension
funds, and charitable trusts.
About MAK Capital
MAK Capital, one of the top performing asset managers over the
past decade, focuses on contrarian opportunities in the financial
markets. MAK invests with a long term perspective across a
variety of asset classes, including distressed debt and equities.
About Sankaty Advisors
Sankaty Advisors, LLC, the credit affiliate of Bain Capital, LLC,
is one of the nation's leading private managers of fixed income
and credit instruments. With approximately $19 billion in
committed assets under management, Sankaty invests in a wide
variety of securities and investments, including leveraged loans,
high-yield bonds, distressed/stressed debt, mezzanine debt,
structured products and equities.
About Champion Enterprises
Troy, Michigan-based Champion Enterprises, Inc., and its
subsidiaries are international manufacturers of factory-built
homes and steel-framed modular buildings, with operations in the
United States, Canada and the United Kingdom. Buildings
constructed by Champion and its subsidiaries consist of both
single and multi-module units designed for either commercial or
residential purposes. Champion products range from single-module
HUD-Code homes to sophisticated commercial structures such as
hotels.
The Company filed for Chapter 11 on November 15, 2009 (Bankr. D.
Del. Case No. 09-14019). The Company's affiliates also filed
separate bankruptcy petitions. James E. O'Neill, Esq., Laura
Davis Jones, Esq., Mark M. Billion, Esq., Timothy P. Cairns, Esq.,
at Pachulski Stang Ziehl & Jones LLP, assist Champion in its
restructuring effort. The Company listed $576,527,000 in assets
and $521,337,000 in liabilities as of October 3, 2009.
CHATSWORTH INDUSTRIAL: Taps Caceres & Shamash as Bankr. Counsel
---------------------------------------------------------------
Chatsworth Industrial Park, LP, asks the U.S. Bankruptcy Court for
the Central District of California for permission to employ
Caceres & Shamash LLP as general bankruptcy counsel.
C & S will, among other things:
-- assist the Debtor with the preparation and submission of
all documents and items to the U.S. Trustee;
-- render advice and guidance with respect to the duties,
rights and obligations of the Debtor as debtor-in-
possession; and
-- formulate and prepare a plan of reorganization and
disclosure statement.
Charles Shamash, Esq., an attorney at C & S, tells the Court that
the Debtor agreed to a $26,500 advance retainer. C & S received
$19,000 of that retainer and requests approval of the $7,500
postpetition payment.
The hourly rates of C & S' personnel are:
Mr. Shamash $400
Joseph E. Caceres, Esq. $400
Mr. Shamash assures the Court the C & S is a "disinterested
person" as that term is defined in Section 101(14) of the
Bankruptcy Code.
Mr. Shamash can be reached at:
Caceres & Shamash LLP
8200 Wilshire Blvd. Ste 400
Beverly Hills, CA 90211
Tel: (310) 205-3400
Fax: (310) 878-8308
Tarzana, California-based Chatsworth Industrial Park, LP filed for
Chapter 11 on December 23, 2009 (Bankr. C.D. Calif. Case No. 09-
27368). In its petition, the Debtor listed $10,000,001 to
$50,000,000 in assets and $1,000,001 to $10,000,000 in debts.
CHATSWORTH INDUSTRIAL: Wants Access to Prepetition Lenders Cash
---------------------------------------------------------------
Chatsworth Industrial Park, LP, asks the U.S. Bankruptcy Court for
the Central District of California for authorization to:
-- use cash collateral from the five adjacent industrial
properties in Chatsworth, California located at 21026-21040
Nordhoff Street, 9035 Independence Avenue, 21019 Osborne
Street, 21025 Osborne Street, and 21045-51 Osborne Street,
to pay ordinary and necessary operating expenses; and
-- grant adequate protection to Keybank, NA and the L.A. County
Tax Collector, as holders of potential liens on the
Chatsworth Properties.
As adequate protection for any diminution in value of the lenders'
collateral, the Debtors will grant Keybank, N.A., as holder of a
first trust deed on the Chatsworth Properties:
i) a replacement lien;
ii) ongoing cash payments to Keybank, N.A. in the form of
regular monthly mortgage payments of $67,126 per month;
iii) periodic (monthly) accountings reflecting all collections
and disbursements made by the Debtor; and
iv) appropriate insurance coverage on the properties so as to
protect the secured creditors' interest therein.
The Debtor will also grant L.A. County a replacement lien.
Tarzana, California-based Chatsworth Industrial Park, LP filed for
Chapter 11 on December 23, 2009 (Bankr. C.D. Calif. Case No. 09-
27368). Caceres & Shamash LLP represents the Debtor in its
restructuring effort. In its petition, the Debtor listed
$10,000,001 to $50,000,000 in assets and $1,000,001 to $10,000,000
in debts.
CHATSWORTH INDUSTRIAL: May File Schedules Tomorrow
--------------------------------------------------
Chatsworth Industrial Park, LP, asked the U.S. Bankruptcy Court
for the Central District of California to extend until January 20,
2010, the period to file the remainder of its schedules,
statements, lists, and other required documents.
The Debtor relates that it needs additional time to collate and
parse through all the information required for an accurate
disclosure, and to coordinate the necessary meeting to ensure an
accurate disclosure.
Tarzana, California-based Chatsworth Industrial Park, LP filed for
Chapter 11 on December 23, 2009 (Bankr. C.D. Calif. Case No. 09-
27368). Caceres & Shamash LLP represents the Debtor in its
restructuring effort. In its petition, the Debtor listed
$10,000,001 to $50,000,000 in assets and $1,000,001 to $10,000,000
in debts.
CHEMTURA CORP: Gets Nod to Tap Pillsbury Winthrop as Counsel
------------------------------------------------------------
Chemtura Corp. and its units obtained permission to expand the
ordinary course employment of Pillsbury Winthrop Shaw Pittman LLP
as the firm's fees and expenses are expected to exceed the limits
established by the Court for ordinary course professionals.
Pillsbury Winthrop was originally retained by the Debtors in
connection with litigation involving the alleged breach of an
environmental agreement related to pre-closing contamination at
the Debtors' former petroleum refinery and associated tank farm
in Bakersfield, California, known as the "Tricor Refining
Matter". Pillsbury represented the Debtors and their
predecessors-in-interest in connection with the Tricor Refining
Matter for more than six years, including a trial on liability in
2005 and a second trial on damages in November 2008 and March
2009.
The Debtors assert that the Tricor Refining Matter is very
complex, and involves the extensive use of expert witnesses with
whom Pillsbury attorneys have worked throughout the case, which
began in June 2003. They note that Phase 2 of the refinery-
related portion of the case has been largely concluded, but needs
some additional work and other issues relating to an associated
tank farm are the subject of a tolling agreement.
By this application, the Debtors seek to employ Pillsbury
Winthrop as special litigation counsel nunc pro tunc to
October 1, 2009.
As a result of previous engagements with the Debtors, Pillsbury
has extensive knowledge concerning the Tricor Refining Matter as
well as other matters and is already familiar with the Debtors'
business affairs to the extent necessary for the scope of the
proposed and anticipated services related to the Tricor Refining
Matter and other matters, Billie S. Flaherty, Esq., the Debtors'
senior vice president, general counsel, and secretary, contends.
As the Debtors' special litigation counsel, Pillsbury's
assistance will involve, among other things:
(a) briefing on issues in Phase 2;
(b) analyzing the Court's Phase 2 ruling on damages;
(c) preparing a proposed statement of decision and final
judgment, or providing objections to plaintiff's proposed
statement of decision and final judgment, depending on the
Court's ruling in Phase 2;
(d) responding to plaintiff's claim for pre-judgment interest
and attorneys fees;
(e) responding to plaintiff's claims relating to alleged
contamination of the tank farm and pursuing the Debtors'
claims against plaintiff relating to trespass and
abandonment;
(f) briefing on any issues, as asked by the Court; and
(g) other general litigation analysis and strategy related to
the Triocor Refining Matter as necessary.
The Debtors will pay for Pillsbury's services on an hourly basis
according to these rates:
Partners $630 to $655
Associates $360 to $600
Paralegals/Legal Analysts $200 to $330
During the 90-day period before the Petition Date, the Debtors
paid Pillsbury $271,640 for professional services performed and
expenses incurred in connection with the preparation for and
conduct of the Phase 1 trial on liability in the Tricor Refining
Matter. Pillsbury filed an unsecured for $515,124 against the
Debtors on October 30, 2009, representing professional services
performed and expenses incurred in connection with the
preparation for and conduct of the Phase 1 trial on liability and
the Phase 2 trial on damages, including payment of certain expert
witness fees.
Margaret Rosegay, Esq., a partner at Pillsbury, assures the Court
that her firm is an "uninterested person" as the term is defined
under Section 101(14) of the Bankruptcy Code.
About Chemtura Corp.
Based in Middlebury, Connecticut, Chemtura Corporation (CEM) --
http://www.chemtura.com/-- with 2008 sales of $3.5 billion, is a
global manufacturer and marketer of specialty chemicals, crop
protection products, and pool, spa and home care products.
Chemtura Corporation and 26 of its U.S. affiliates filed voluntary
petitions for relief under Chapter 11 on March 18, 2009 (Bankr.
S.D.N.Y. Case No. 09-11233). M. Natasha Labovitz, Esq., at
Kirkland & Ellis LLP, in New York, serves as bankruptcy counsel.
Wolfblock LLP serves as the Debtors' special counsel. The
Debtors' auditors and accountant are KPMG LLP; their investment
bankers are Lazard Freres & Co.; their strategic communications
advisors are Joele Frank, Wilkinson Brimmer Katcher; their
business advisors are Alvarez & Marsal LLC and Ray Dombrowski
serves as their chief restructuring officer; and their claims and
noticing agent is Kurtzman Carson Consultants LLC.
As of December 31, 2008, the Debtors had total assets of
$3.06 billion and total debts of $1.02 billion.
Bankruptcy Creditors' Service, Inc., publishes Chemtura
Bankruptcy News. The newsletter tracks the Chapter 11
proceedings undertaken by Chemtura Corp. and its affiliates.
(http://bankrupt.com/newsstand/or 215/945-7000)
CHESTER SPIERING: Case Summary & 6 Largest Unsecured Creditors
--------------------------------------------------------------
Debtor: Chester Herbert Spiering, Jr.
aka Skip Spiering
385 Woodview Avenue
Morgan Hill, CA 95037
Bankruptcy Case No.: 10-50284
Chapter 11 Petition Date: January 13, 2010
Court: United States Bankruptcy Court
Northern District of California (San Jose)
Judge: Richard S. Schmidt
Debtor's Counsel: Judson T. Farley, Esq.
Law Offices of Judson T. Farley
830 Bay Ave. #B
Capitola, CA 95010-2173
Tel: (831) 476-1766
Email: judsonfarley@sbcglobal.net
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
According to the schedules, the Company has assets of $1,500,105,
and total debts of $1,688,116.
A full-text copy of the Debtor's petition, including a list of its
6 largest unsecured creditors, is available for free at:
http://bankrupt.com/misc/canb10-50284.pdf
The petition was signed by Chester Herbert Spiering, Jr.
CHI SOUTHWEST: Voluntary Chapter 11 Case Summary
------------------------------------------------
Debtor: CHI Southwest, LLC
fka CHI, LLC
fka CHI Management, LLC
3131 Turtle Creek Blvd., Suite 810
Dallas, TX 75219
Bankruptcy Case No.: 10-30383
Debtor-affiliates filing separate Chapter 11 petitions:
Entity Case No.
------ --------
CHI Austin, LLC 10-30380
CHI Cenral, LLC 10-30381
Chapter 11 Petition Date: January 15, 2010
Court: United States Bankruptcy Court
Northern District of Texas (Dallas)
Judge: Stacey G. Jernigan
Debtor's Counsel: Rakhee V. Patel, Esq.
Pronske & Patel, P.C.
2200 Ross Avenue, Suite 5350
Dallas, TX 75201
Tel: (214) 658-6500
Fax: (214) 658-6509
Email: rpatel@pronskepatel.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
The petition was signed by Dennis L. Wells, president of the
company.
CHRYSLER LLC: Lone US Automaker to Run 60-Second Super Bowl Ad
--------------------------------------------------------------
CNNMoney.com staff writer Aaron Smith reports Chrysler will
advertise its Dodge Charger in a 60-second commercial in this
year's Super Bowl.
The 43rd Super Bowl will be played February 7 at Dolphin Stadium
in Miami Gardens, Florida.
CNNMoney.com says a 60-second spot is the longest and the most
expensive ad available during the Super Bowl. The report relates
the 30-second spots are more common, and are selling for about
$3 million each according to Dana McClintock a spokesman for CBS,
which is airing this year's Super Bowl. It isn't clear exactly
how much Chrysler is paying, but CBS said on Thursday that it was
close to selling out.
CNNMoney.com says Chrysler will be the only U.S. automaker to
advertise in this year's Super Bowl.
"My guess is that Chrysler wants to take the opportunity to talk
to the American people and say, 'We're here, we're a long term
player, and we have a good product,'" said Jim Cain, marketing
executive with the Quell Group, a brand communications firm based
in Troy, Michigan, CNNMoney.com notes.
Several foreign automakers will be advertising in the 2010 Super
Bowl, including Honda, Hyundai, Kia, Audi and Volkswagen,
according to the report.
About Chrysler Group LLC
Chrysler Group LLC, formed in 2009 from a global strategic
alliance with Fiat Group, produces Chrysler, Jeep(R), Dodge, Ram
Truck, Mopar(R) and Global Electric Motorcars (GEM) brand vehicles
and products. Headquartered in Auburn Hills, Michigan, Chrysler
Group LLC's product lineup features some of the world's most
recognizable vehicles, including the Chrysler 300, Jeep Wrangler
and Ram Truck. Fiat will contribute world-class technology,
platforms and powertrains for small- and medium-sized cars,
allowing Chrysler Group to offer an expanded product line
including environmentally friendly vehicles.
About Chrysler LLC
Chrysler LLC and 24 affiliates on April 30 sought Chapter 11
protection from creditors (Bankr. S.D.N.Y (Mega-case), Lead Case
No. 09-50002). Chrysler hired Jones Day, as lead counsel; Togut
Segal & Segal LLP, as conflicts counsel; Capstone Advisory Group
LLC, and Greenhill & Co. LLC, for financial advisory services; and
Epiq Bankruptcy Solutions LLC, as its claims agent. Chrysler has
changed its corporate name to Old CarCo following its sale to a
Fiat-owned company. As of December 31, 2008, Chrysler had
$39,336,000,000 in assets and $55,233,000,000 in debts. Chrysler
had $1.9 billion in cash at that time.
In connection with the bankruptcy filing, Chrysler reached an
agreement with Fiat SpA, the U.S. and Canadian governments and
other key constituents regarding a transaction under Section 363
of the Bankruptcy Code that would effect an alliance between
Chrysler and Italian automobile manufacturer Fiat. Under the
terms approved by the Bankruptcy Court, the company formerly known
as Chrysler LLC on June 10, 2009, formally sold substantially all
of its assets, without certain debts and liabilities, to a new
company that will operate as Chrysler Group LLC. Fiat has a 20
percent equity interest in Chrysler Group.
Bankruptcy Creditors' Service, Inc., publishes Chrysler Bankruptcy
News. The newsletter tracks the Chapter 11 proceedings of
Chrysler LLC and its debtor-affiliates.
(http://bankrupt.com/newsstand/or 215/945-7000)
COEUR D'ALENE: S&P Withdraws 'B-' Corporate Credit Rating
---------------------------------------------------------
Standard & Poor's Ratings Services said that it withdrew its
ratings on Coeur D'Alene, Idaho-based Coeur D'Alene Mines Corp.,
including its 'B-' corporate credit rating.
The ratings were withdrawn at the company's request.
COLONIAL BANCGROUP: Seeks to Free $38 Million from FDIC Claim
-------------------------------------------------------------
Bill Rochelle at Bloomberg News reports that Colonial BancGroup
Inc. filed a motion asking the Bankruptcy Court to rule that the
Federal Deposit Insurance Corp. doesn't have a security interest
in several bank accounts at Branch Banking & Trust Co. holding a
total of $38.4 million. Colonial's motion, to be argued Feb. 4,
contends there are no disputed issues of fact. Colonial BancGroup
filed the summary judgment motion on January 11.
The parties' dispute stems from a September 18, 2009 motion filed
by the Debtor for authority to use cash collateral, which in
effect sought the immediate turnover of the balances held in
certain alleged deposit accounts totaling $38 million. The FDIC-
Receiver objected to the Debtor's "emergency" cash collateral
motion on numerous grounds. The FDIC also filed a lift stay
request to allow it to exercise its setoff rights with respect to
the alleged account balances. Among other claims giving rise to
setoff, the FDIC-Receiver identified an uncured capital
maintenance commitment owed by the Debtor of at least $1 billion
that the Debtor was required to assume and cure as a condition to
obtaining protection under chapter 11 of the Bankruptcy Code.
The Debtor has commenced an adversary proceeding against the FDIC-
Receiver in which it asserts that its own capital maintenance
commitment was a fraudulent transfer.
Mr. Rochelle notes that even if Colonial wins the suit against the
FDIC, not all of the $38.4 million will become an unencumbered
asset. Branch Banking itself is claiming a security interest in
more than $24 million in the accounts.
About The Colonial BancGroup
Headquartered in Montgomery, Alabama, The Colonial BancGroup, Inc.
(NYSE: CNB) was holding company to Colonial Bank, N.A, its
banking subsidiary. Colonial bank -- http://www.colonialbank.com/
-- operated 354 branches in Florida, Alabama, Georgia, Nevada and
Texas with over $26 billion in assets. On August 14, 2009,
Colonial Bank was seized by regulators and the Federal Deposit
Insurance Corporation was named receiver. The FDIC sold most of
the assets to Branch Banking and Trust, Winston-Salem, North
Carolina. BB&T acquired $22 billion in assets and assumed
$20 billion in deposits of the Bank.
Colonial BancGroup filed for Chapter 11 bankruptcy protection on
August 25, 2009 (Bankr. M.D. Ala. Case No. 09-32303). W. Clark
Watson, Esq., at Balch & Bingham LLP and Rufus T. Dorsey IV,
Esq., at Parker Hudson Rainer & Dobbs LLP, assist the Company in
its restructuring effort. The Company listed $45,000,000 in
assets and $380,000,000 in debts in its bankruptcy filing.
CONEXANT SYSTEMS: Files Universal Self Registration Statement
-------------------------------------------------------------
Conexant Systems, Inc. has filed a universal shelf registration
statement with the Securities and Exchange Commission. When the
shelf registration statement is declared effective by the SEC,
Conexant will have the option to offer and sell, from time to time
in one or more offerings, up to $100 million of common stock,
preferred stock, debt securities, warrants to purchase any of
these securities, or any combination of such securities. Specific
terms and share prices of any future offering under this
registration statement will be established at the time of any such
offering, and will be described in a prospectus supplement that
Conexant will file with the SEC.
The Company intends to use the net proceeds from the sale of
securities under the shelf registration statement for general
corporate purposes including, but not limited to, repaying,
redeeming, or repurchasing existing debt, and for working capital,
capital expenditures, and acquisitions.
A copy of the final prospectus and prospectus supplement relating
to any offering under the registration statement will be filed
with the SEC and can be obtained, when available, by contacting
Conexant Systems, Inc., Attention: Chief Financial Officer, 4000
MacArthur Boulevard, Newport Beach, California, 92660.
The TCR on December 2, 2009, said Conexant continued its string of
losses, reporting a net loss of $5,263,000 for the fiscal year
ended October 2, 2009. The net loss is substantially lower
compared to net losses of $300,176,000 for the fiscal year ended
October 3, 2008, and $402,462,000 for the fiscal year ended
September 28, 2007.
At October 2, 2009, the Company had total assets of $350,850,000
against total liabilities of $469,401,000, resulting in
shareholders' deficit of $118,551,000. At October 2, 2009, the
Company had accumulated deficit of $4,884,471,000.
"We will continue to explore other restructuring and re-financing
alternatives as well as supplemental financing alternatives
including, but not limited to, an accounts receivable credit
facility. In the event we are unable to satisfy or refinance all
of our outstanding debt obligations as the obligations are
required to be paid, we will be required to consider strategic and
other alternatives, including, among other things, the sale of
assets to generate funds, the negotiation of revised terms of our
indebtedness, additional exchanges of our existing indebtedness
obligations for new securities and additional equity offerings,"
the Company said.
The Company has retained financial advisors to assist in
considering strategic, restructuring or other alternatives.
About Conexant
Newport Beach, California-based Conexant Systems, Inc. (NASDAQ:
CNXT) -- http://www.conexant.com/-- is a fabless semiconductor
company. Conexant's comprehensive portfolio of innovative
semiconductor solutions includes products for imaging, audio,
embedded-modem, and video applications. Outside the United
States, the Company has subsidiaries in Northern Ireland, China,
Barbados, Korea, Mauritius, Hong Kong, France, Germany, the United
Kingdom, Iceland, India, Israel, Japan, Netherlands, Singapore,
and Israel.
DAUFUSKIE ISLAND: Resort Property Sold for $49.5 Million
---------------------------------------------------------
Bill Rochelle at Bloomberg News reports that Daufuskie Island
Properties LLC won approval from the Bankruptcy Court to sell
its Daufuskie Island Resort & Breathe Spa on Hilton Head Island,
South Carolina for $49.5 million to Montauk Resorts LLC. The
liquidating Chapter 11 plan pending before the Court incorporates
the sale.
Based in Hilton Head Island, South Carolina, Daufuskie Island
Properties LLC -- http://www.daufuskieislandresort.com/--
operates the Daufuskie Island Resort & Breathe Spa. The company
was owned by Gayle and Bill Dixon, a San Francisco Bay area
couple. Daufuskie Island Properties filed for Chapter 11 in
January 2009 (Bankr. D. S.C. Case No. 09-00389).
DAVID HAASE: Voluntary Chapter 11 Case Summary
----------------------------------------------
Joint Debtors: David Haase
Andrea Haase
112 East 17th Street, #3W
New York, NY 10003
Bankruptcy Case No.: 10-10166
Chapter 11 Petition Date: January 14, 2010
Court: United States Bankruptcy Court
Southern District of New York (Manhattan)
Judge: Duncan W. Keir
Debtors' Counsel: Douglas J. Pick, Esq.
Pick & Zabicki LLP
369 Lexington Avenue, 12th Floor
New York, NY 10017
Tel: (212) 695-6000
Fax: (212) 695-6007
Email: dpick@picklaw.net
Estimated Assets: Not Stated
Estimated Debts: Not Stated
The Debtors did not file a list of their 20 largest unsecured
creditors when they filed their petition.
The petition was signed by the Joint Debtors.
DCB INVESTMENT: Voluntary Chapter 11 Case Summary
-------------------------------------------------
Debtor: DCB Investment Property, LLC
dba The Villas at Montebella
C/O Law Offices of Tracy S. Essig, PLC
3509 E. Shea Blvd., Suite 117
Phoenix, AZ 85028
Bankruptcy Case No.: 10-01090
Chapter 11 Petition Date: January 14, 2010
Court: United States Bankruptcy Court
District of Arizona (Phoenix)
Debtor's Counsel: Tracy S. Essig, Esq.
Law Office Of Tracy S. Essig
3509 E. Shea Blvd., Suite 117
Phoenix, AZ 85028
Tel: (602) 493-2326
Fax: (602) 482-3164
Email: tracyessiglaw@cox.net
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
The Debtor did not file a list of its 20 largest unsecured
creditors when it filed its petition.
The petition was signed by Daniel Boanca, managing member of the
Company.
DECODE GENETICS: Del. Court Approves Sale to Saga Investments
-------------------------------------------------------------
GenomeWeb Daily News says the U.S. Bankruptcy Court in Delaware
approved the sale of Decode Genetics' assets to Saga Investments
for a cash consideration of between $3 million and $11 million,
depending on amounts outstanding from a previous loan deal between
the parties.
The report relates the purchase price includes an additional cash
equal to 25% of the net cash proceeds from the sale, licensing, or
monetization within two years of certain company drug compounds in
development, minus $3 million; as well as a non-voting ownership
interest in Saga of about 15%.
About decode Genetics
deCODE Genetics Inc. is a global leader in analyzing and
understanding the human genome. deCODE has identified key
variations in the sequence of the genome conferring increased risk
of major public health challenges from cardiovascular disease to
cancer, and employs its gene discovery engine to develop DNA-based
tests to assess individual risk of common diseases; to license its
tests and intellectual property to partners; and to provide
comprehensive, leading- edge contract services to companies and
research institutions around the globe. The Company was founded
in 1996 and is headquartered in Reykjavik, Iceland.
deCODE's balance sheet at June 30, 2009, showed total assets of
$69.85 million and total liabilities of $313.92 million,
resulting in a stockholders' deficit of $244.07 million.
The Company filed for Chapter 11 on November 16, 2009 (Bankr. D.
Del. Case No. 09-14063). The petition listed assets of
$69.9 million against debt of $314 million. Liabilities
include $230 million on 3.5% senior convertible notes.
DENNY HECKER: Hid Assets From Court, Trustee's Suit Says
--------------------------------------------------------
Star Tribune's Dee DePass reports Randy Seaver, the trustee
appointed in the bankruptcy cases of Denny Hecker, has commenced a
lawsuit accusing Mr. Hecker of lying, fraud and scheming to
conceal cars, cash, property and other significant assets from the
bankruptcy court.
According to Star Tribune, Mr. Hecker in an e-mail Wednesday
afternoon, said his attorneys are reviewing the allegations. Mr.
Hecker denies the claims.
In his lawsuit, Star Tribune notes, Mr. Seaver contends Mr. Hecker
used his Northstate Financial Corp. to hide ownership of boats,
six Harley Davidson motorcycles, a Cadillac Escalade, a Mitsubishi
convertible, a "Tom Car" ATV and other assets. The complaint
alleges the properties were listed as "held for resale" but in
reality "were held personally by Hecker for his own personal use,
benefit and enjoyment." According to the complaint, by leaving
the titles of expensive assets under the auspices of Northstate
Financial, "Hecker was able to avoid paying sales tax and the
items were not easily traceable to Hecker."
Star Tribune relates Mr. Seaver also accused Mr. Hecker of lying
to the court by claiming that vast vacation property in Crosslake,
Minnesota, was his homestead and therefore should be exempt from
liquidation. The suit alleges Mr. Hecker falsified lease
agreements for two other Crosslake properties he owned. Mr.
Hecker also allegedly concealed several Rolex watches worth more
than $40,000, spent money wildly, and transferred expensive gifts
and hundreds of thousands of dollars to girlfriend Christi Rowan
without logging it into court records as required.
Star Tribune notes Mark Kalla, Esq., at Dorsey and Whitney, who
has no role in the case, said Mr. Seaver's allegations are
"unusual" among bankruptcy cases.
"If the judge finds that there is a fraud committed on the court,
he won't hesitate to deny a discharge [of debt]. The bankruptcy
code gives the honest debtor a fresh start. But mess with that and
forget it," Star Tribune quotes Mr. Kalla as saying. "A debtor
that doesn't abide by the rules doesn't deserve and won't get the
protections offered by the bankruptcy code. If the court denies
this discharge [Hecker] will have it forever unless he pays it
off."
Star Tribune relates that Jim Lodoen, Esq., at Lindquist and
Vennum, said maybe 1% of bankruptcy filings result in a trustee
suing so that a judge does not discharge a debt. "It's always a
heavy-hitter kind of case" where you see such requests, Mr. Lodoen
said, according to Star Tribune.
According to Star Tribune, Mr. Lodoen said if Bankruptcy Judge
Robert Kressel doesn't discharge Hecker's debts, "It's the worst
of both worlds for the individual who filed for bankruptcy because
your debts are not discharged but all your assets are subject to
the trustee for liquidation to the creditors."
Star Tribune also relates Mr. Kalla said if Mr. Hecker loses this
case, he would be hardpressed to ever get significant credit
again. "It's pretty hard to get credit when you have $1 billion
in debt that is never going to be discharged." he said, according
to Star Tribune.
About Denny Hecker
Denny Hecker filed for Chapter 7 bankruptcy on June 4, 2009,
before the U.S. Bankruptcy Court for the District of Minnesota.
Mr. Hecker listed $18 million in assets and $767 million in debts
owed to automakers, lenders, business partners and former
employees.
According to the Star Tribune in Minneapolis-St. Paul, the
bankruptcy filing had been widely anticipated. Star Tribune noted
Mr. Hecker has been forced to sell or close 25 of his 26
dealerships in recent months, and Chrysler Financial won a
$477 million court judgment against him in April. The bankruptcy
filing temporarily halted efforts by Chrysler and other creditors
from collecting money they say they are owed.
The Troubled Company Reporter on November 20 said Bankruptcy Judge
Robert Kressel held Mr. Hecker in contempt of court for failing to
turn over his financial records in a timely manner.
William R. Skolnick, Esq., at Skolnick & Shiff, P.A., in
Minneapolis, represents Mr. Hecker.
DUBAI WORLD: Abu Dhabi's $10-Bil. Funding Is "Half that Size"
-------------------------------------------------------------
Abu Dhabi's $10 billion funding for Dubai is actually half that
size, according to Maria Abi-Habib at The Wall Street Journal,
citing a spokeswoman for the Dubai Department of Finance.
According to the Wall Street Journal, the disclosure raises
questions about the United Arab Emirates' plans for paying down
Dubai's mountain of debt.
The Journal relates that that spokeswoman on Monday said the $10
billion bailout, which was announced in December, includes $5
billion in funds separately announced in November by two Abu
Dhabi-controlled banks.
Ms. Abi-Habib says it is unclear how the reduction in funding will
affect Dubai's finances or its plans to restructure debt. She
notes Dubai has been criticized for a lack of transparency around
its debt restructuring.
Ms. Abi-Habib points out the disclosure cuts by 20% the funds that
analysts had assumed Abu Dhabi, the capital of the U.A.E. and its
financial powerhouse, had committed to Dubai over the course of
last year. While both governments have disclosed little about the
series of bailouts, analysts had widely interpreted the total
funding commitment from Abu Dhabi and the federal government to
Dubai at $25 billion. Dubai's disclosure Monday reduces that to
$20 billion.
The Journal notes Dubai announced earlier this month a new media
office to coordinate the emirate's communications strategy. The
Journal says Ahmed Al Shaikh, director of the new office, wasn't
reachable for comment Monday. The Journal also relates a
spokesman for the federal government in Abu Dhabi was unable to
comment on the matter.
The Journal recalls that Dubai, struggling under total debt
estimated as high as $80 billion, announced in February 2009 that
the U.A.E. federal government would buy $10 billion of bonds
issued by Dubai. The proceeds would go to pay down debt and
unpaid bills.
In late November, Dubai said two Abu Dhabi banks would subscribe
to another $5 billion worth of bonds. Hours later, however, Dubai
shocked global investors by announcing its corporate flagship,
Dubai World, would request a debt standstill from lenders.
In December, Dubai said Abu Dhabi had agreed to extend another
$10 billion to help shore up finances. Dubai said $4.1 billion of
that would go to pay off a bond maturing that same day, and the
rest to provide interest expenses and working capital for the
company through April 2010.
Abu Dhabi and Dubai are two of seven, semi-independent emirates
that make up the U.A.E.
6-Month Standstill
In November 2009, the Troubled Company Reporter ran a story
about Dubai World seeking a six-month standstill on its debt
obligations. The government of Dubai said it would restructure
Dubai World and has appointed Deloitte LLP to lead the
restructuring effort, naming an executive at the consultancy as
the group's "chief restructuring officer."
Bloomberg News' Arif Sharif and Laura Cochrane said Dubai World
has US$59 billion in liabilities. Bloomberg said Dubai
accumulated US$80 billion of debt by expanding in banking, real
estate and transportation before credit markets seized up last
year.
The Wall Street Journal said Standard & Poor's in an October
report estimated Dubai World could be responsible for as much as
50% of Dubai's total government and corporate debt load of some
US$80 billion to US$90 billion.
Large Exposure
As reported by the Troubled Company Reporter-Europe on Dec. 1,
2009, The Wall Street Journal's Chip Cummins, Dana Cimilluca and
Sara Schaefer Munoz, citing a person familiar with the matter,
said that U.K.'s Royal Bank of Scotland Group PLC, HSBC Holdings
PLC, Barclays PLC, Lloyds Banking Group PLC, Standard Chartered
PLC and ING Groep NV of the Netherlands, are among the
international banks that have large exposure in Dubai World.
RBS has lent roughly US$1 billion to Dubai World, another person
said, according to the Journal. Sources also told the Journal
Barclays's exposure to Dubai World is roughly US$200 million, and
that exposure is effectively hedged.
David Robertson at The (U.K) Times reported Credit Suisse has
estimated that European banks could have EUR40 billion
(GBP36 billion) in loans to Dubai and much of this could be at
risk if the Gulf emirate defaults.
The Journal, citing people familiar with the matter, said the
banks with the greatest exposure to Dubai World are Abu Dhabi
Commercial Bank and Emirate NBD PJSC, people familiar with the
matter said.
Dow Jones Newswires' Margot Patrick related that a report by the
Emirates Banks Association said the top eight foreign banks in the
United Arab Emirates by lending volume -- HSBC, Standard
Chartered, Barclays, HSBC, Royal Bank of Scotland's ABN Amro,
Citigroup Inc., BNP Paribas SA, Lloyds and Credit Agricole SA's
Calyon, -- extended about US$36 billion in loans in 2008
throughout the federation, without breaking down the loans by
emirate or type of borrower.
About Dubai World
Dubai World -- http://www.dubaiworld.ae/-- is Dubai's flag bearer
in global investments. As a holding company it operates a highly
diversified spectrum of industrial segments and plays a major role
in the emirate's rapid economic growth. Dubai World's investment
spans four strategic growth areas of 21st Century commerce namely,
Transport & Logistics, Drydocks & Maritime, Urban Development and
Investment & Financial Services. Dubai World's portfolio includes
DP World, one of the largest marine terminal operators in the
world; Drydocks World & Dubai Maritime City designed to turn Dubai
into a major ship-building and maritime hub; Economic Zones World
which operates several free zones around the world including Jafza
and TechnoPark in Dubai; Nakheel the property developer behind
iconic projects such as The Palm Islands and The World among
others; Limitless the international real estate master planner
with current development projects in various parts of the world;
Leisurecorp a global sports and leisure investment group,
reshaping the industry by unlocking value across investment,
development and brand opportunities; Dubai World Africa which
oversees the regional development and portfolio of investments in
the African continent; and Istithmar World, the group's investment
arm that has a global footprint in finance, capital, leisure,
aviation and various other business ventures.
The Sun Never Sets on Dubai World, its Web site says.
DUDERSTADT FOUNDATION: Case Summary & 20 Largest Unsec. Creditors
-----------------------------------------------------------------
Debtor: Duderstadt Foundation Co., Inc.
2215 Belknap Place
San Antonio, TX 78212
Bankruptcy Case No.: 10-50199
Chapter 11 Petition Date: January 15, 2010
Court: United States Bankruptcy Court
Western District of Texas (San Antonio)
Judge: Chief Bkptcy Judge Ronald B. King
Debtor's Counsel: William R. Davis, Jr., Esq.
Langley & Banack, Inc
745 E Mulberry Ave, Suite 900
San Antonio, TX 78212
Tel: (210) 736-6600
Fax: (210) 735-6889
Email: wrdavis@langleybanack.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
A full-text copy of the Debtor's petition, including a list of its
20 largest unsecured creditors, is available for free at:
http://bankrupt.com/misc/txwb10-50199.pdf
The petition was signed by Frank J. Duderstadt, president of the
Company.
EAGLEPICHER CORP: S&P Puts 'CCC+' Rating on $70 Mil. Loan
---------------------------------------------------------
Standard & Poor's Ratings Services placed its 'CCC+' rating on
EaglePicher's $70 million second-lien term loan on CreditWatch
with positive implications. S&P's corporate credit rating on
EaglePicher remains unchanged at 'B'. The outlook is stable.
The speculative-grade ratings on Dearborn, Michigan-based
EaglePicher Corp. reflect its weak business risk profile,
characterized by the reduced scope of its operations and
uncertainty with regard to the company's future business strategy,
given recent asset dispositions in some segments, and its limited
financial flexibility. U.S.-based financial sponsors Angelo,
Gordon & Co., and Tennenbaum Capital Partners LLC primarily own
EaglePicher.
EaglePicher is a niche provider to the automotive and filtration
industries. Its sale of its EaglePicher Technologies LLC unit to
OM Group Inc. (BB-/Stable/--) is valued at about $172 million.
Based on the terms of EaglePicher's credit agreement, S&P expects
it to use the proceeds to pay down debt, which should benefit
credit protection measures in the short term.
"Although the company's sale of its Technologies division
diminishes its business risk profile, it significantly reduces
leverage in the near term," said Standard & Poor's credit analyst
John R. Sico. "We expect the company to operate at a much more
moderate level of leverage, and anticipate adequate liquidity from
cash on hand and revolver availability to sustain operations in
the future," he continued.
Still, pressures stemming from the auto supplier industry, along
with weak volumes and possible margin pressures, may hamper
operating results. S&P could lower the ratings if the company
actively pursues debt-financed acquisitions, which could weaken
credit metrics to a level outside S&P's range of expectations of
5x-6x total debt to EBITDA (adjusted for operating leases and
pensions). Although the company's reduced business limits upside
potential for the rating, S&P could consider raising the ratings
if EaglePicher can grow earnings and cash flow and maintain a
reasonably levered capital structure.
EASTMAN KODAK: Alleges Patent Infringement by Apple and RIM
-----------------------------------------------------------
Eastman Kodak Company has filed lawsuits against Apple Inc. and
Research In Motion Limited alleging the infringement of Kodak
digital imaging technology.
The Kodak complaint, filed with the U.S. International Trade
Commission, specifically claims that Apple's iPhones and RIM's
camera-enabled BlackBerry devices infringe a Kodak patent that
covers technology related to a method for previewing images.
Separately, Kodak has filed two suits against Apple in U.S.
District Court for the Western District of New York that claim the
infringement of patents related to digital cameras and certain
computer processes.
"Kodak has a long history of digital imaging innovation and we
have invested hundreds of millions of dollars creating our
industry-leading patent portfolio," said Laura G. Quatela, Chief
Intellectual Property Officer, and Vice President, Eastman Kodak
Company. "In the case of Apple and RIM, we've had discussions for
years with both companies in an attempt to resolve this issue
amicably, and we have not been able to reach a satisfactory
agreement. In light of that, we are taking this action to ensure
that we protect the interests of our shareholders and the existing
licensees of our technology.
"Our primary interest is not to disrupt the availability of any
product but to obtain fair compensation for the use of our
technology," Ms. Quatela said. "There's a basic issue of fairness
that needs to be addressed. Those devices use Kodak technology,
and we are merely seeking compensation for the use of our
technology in their products."
Kodak has licensed digital imaging technology to approximately 30
companies, including such leading mobile-device companies as LG,
Motorola, Nokia, Samsung, and Sony Ericsson, all of which are
royalty bearing to Kodak.
On Dec. 17, in an action involving Samsung and Kodak, an ITC
Administrative Law Judge issued a ruling declaring that the Kodak
patent covering color image preview (No. 6,292,218) was valid and
enforceable, and that Samsung's camera-enabled mobile devices
infringed upon that Kodak patent.
In the complaint against Apple and RIM, Kodak is seeking from the
ITC a limited exclusion order preventing the importation of
infringing devices, including certain mobile telephones and
wireless communication devices featuring digital cameras.
In the first suit against Apple in U.S. District Court, Kodak
alleges infringement of two patents generally covering image
preview and the processing of images of different resolutions. In
the second suit, Kodak alleges infringement of patents that
describe a method by which a computer program can "ask for help"
from another application to carry out certain computer-oriented
functions. The allegations in the second suit apply to any Apple
product that uses the processing method described. The patents at
issue in the second suit were previously the subject of litigation
between Kodak and Sun Microsystems Inc., and in that case, a
federal jury determined in a 2004 trial that Sun's Java
programming technology had infringed the patents. Kodak later
settled the suit by agreeing to a payment from Sun in return for a
license for the patents at issue.
In both District Court actions against Apple, Kodak is seeking to
permanently enjoin Apple from further infringement as well as
unspecified damages.
"We remain open to negotiating a fair and amicable agreement with
both Apple and RIM, which has always been our preference and our
practice with other licensees," Ms. Quatela said. "We seek to
avoid litigation in our licensing programs whenever possible. But
when the infringement is persistent, we will act to defend the
interests of our shareholders and licensees, and to promote the
fair compensation that is the bedrock of innovation."
Kodak has a long history of digital innovation. In 1975, Kodak
invented the digital camera, and in 1976, Kodak invented the Bayer
color filter array, which allows digital cameras to capture images
in color. The company has a portfolio of more than 1,000 digital
imaging patents, and to this day, Kodak continues to bring
innovation to the marketplace. At the most recent Consumer
Electronics Show, the KODAK SLICE Touchscreen Camera won an
Innovations 2010 Design and Engineering Award from the
International Consumer Electronics Association. These awards,
sponsored by the CEA and endorsed by the Industrial Designers
Society of America, honor superior design and engineering among
the year's most technologically advanced products.
About Eastman Kodak
Headquartered in Rochester, New York, Eastman Kodak Company
(NYSE:EK) -- http://www.kodak.com/-- provides imaging technology
products and services to the photographic and graphic
communications markets.
Kodak'S balance sheet at June 30, 2009, showed total assets of
$7,106,000,000 and total liabilities of $7,215,000,000, resulting
in shareholders' deficit attributable to Kodak of $112,000,000.
The Troubled Company Reporter on September 22, 2009, said Fitch
Ratings affirmed Kodak's Issuer Default Rating at 'B-'; Senior
secured revolving credit facility at 'BB-/RR1'; and Senior
unsecured debt at 'B-/RR4'.
On Sept. 18, 2009, Standard & Poor's Ratings Services revised its
recovery rating on Eastman Kodak's senior unsecured debt to '6',
indicating S&P's expectation of negligible (0% to 10%) recovery in
the event of a payment default, from '5'. S&P lowered the issue-
level rating to 'CCC' (two notches lower than the 'B-' corporate
credit rating on the company) from 'CCC+', in accordance with
S&P's notching criteria for a '6' recovery rating.
EASTMAN KODAK: Bill Gates, et al., Hold 4.9% Equity Stake
---------------------------------------------------------
Cascade Investment, L.L.C.; Bill & Melinda Gates Foundation Trust;
Melinda French Gates and William H. Gates III disclosed holding in
the aggregate 13,400,000 shares or roughly 4.9% of the common
stock of Eastman Kodak Company.
Cascade holds 2.8% Kodak shares. All shares of Common Stock held
by Cascade may be deemed to be beneficially owned by William H.
Gates III as the sole member of Cascade.
About Eastman Kodak
Headquartered in Rochester, New York, Eastman Kodak Company
(NYSE:EK) -- http://www.kodak.com/-- provides imaging technology
products and services to the photographic and graphic
communications markets.
Kodak'S balance sheet at June 30, 2009, showed total assets of
$7,106,000,000 and total liabilities of $7,215,000,000, resulting
in shareholders' deficit attributable to Kodak of $112,000,000.
The Troubled Company Reporter on September 22, 2009, said Fitch
Ratings affirmed Kodak's Issuer Default Rating at 'B-'; Senior
secured revolving credit facility at 'BB-/RR1'; and Senior
unsecured debt at 'B-/RR4'.
On Sept. 18, 2009, Standard & Poor's Ratings Services revised its
recovery rating on Eastman Kodak's senior unsecured debt to '6',
indicating S&P's expectation of negligible (0% to 10%) recovery in
the event of a payment default, from '5'. S&P lowered the issue-
level rating to 'CCC' (two notches lower than the 'B-' corporate
credit rating on the company) from 'CCC+', in accordance with
S&P's notching criteria for a '6' recovery rating.
EDRA BLIXSETH: Trustee Seeks to Sell "Family Compound" for $8.5MM
-----------------------------------------------------------------
Richard J. Samson, Esq., at Christian, Samson & Jones, Pllc, in
Missoula, Montana, the chapter 7 trustee appointed to oversee the
liquidation of the bankruptcy estate of Edra D. Blixseth, seeks
permission from the U.S. Bankruptcy Court for the District of
Montana to sell Ms. Blixseth's 160-acre "family compound" at
Yellowstone Mountain Club to CIP Yellowstone Lending LLC for
$8.5 million, subject to higher or better offers. The Chapter 7
Trustee seeks to sell the Property free and clear of all Claims
and Interests.
The purchase price consists of $500,000 cash and a credit bid for
$8 million.
The Property does not include any membership privileges in, or
rights to use the facilities of, the Yellowstone Mountain Club and
CIP or any Successful Bidder will be required to make separate
application to the Yellowstone Mountain Club for such membership
privileges and, if accepted for membership, pay any and all
associated costs thereof to the Yellowstone Mountain Club.
The Court will hold a hearing January 29, 2010, to consider
approval of bidding procedures related to the sale. Competing
offers must be (iv) for no less than $9,000,000 cash with the
proceeds to be distributed as: (i) $500,000 to the Trustee of
which the Trustee will pay $125,000 to reimburse CIP for its
Initial Carve-out payment ; (ii) up to $400,000 to CIP in payment
of its breakup fee and expenses; (iii) to CIP in payment of
Obligations secured by the parties' First Mortgage and Security
Agreement; and (iv) the balance, if any, to be applied in
accordance with the priority of other liens on the Property or as
otherwise directed by the Court. Any competing offer must be
accompanied by a deposit equal to no less than $300,000.
CIP will be entitled to a termination fee in the amount of (a)
$250,000 -- being 3% of the Buyer's acquisition price of
$8,500,000 -- plus (b) all out of pocket expenses incurred by
Buyer in pursuing the acquisition of the Property but not to
exceed the sum of $150,000 in the aggregate, in the event (i) the
Court approves a sale of the Property to an entity other than CIP
and (ii) CIP remained at all times through and including 10
business Days immediately following such Court approval, ready,
willing and able to consummate the parties' Real Estate Purchase
Agreement.
The Chapter 7 Trustee also asks the Court to lift the automatic
stay to allow CIP Yellowstone to foreclose on the property at 18
King Edward Court, Rancho Mirage, California. According to the
Chapter 7 Trustee, the California Property is burdensome and
represents inconsequential value to the Debtor's estate as (i) the
Debtor has no equity in the California Property; (ii) the liens on
the California Property are in excess of $35,000,000; (iii) the
Debtor's estate cannot yield any benefit from time to market the
California Property; and (iv) the Debtor's estate has no funds
available to maintain the California Property or to pay accrued
and accruing real estate taxes.
In August 2008, Ms. Blixseth and BLX Group, Inc., formerly known
as Blixseth Group, Inc., secured $35 million in financing from CIP
Yellowstone. The Borrowers are in default under the promissory
notes issued to CIP, as the maturity date of the CIP Notes
occurred on September 30, 2008. None of the payments required
under the CIP Notes -- for principal and accrued interest -- have
been paid as required thereunder. As a result of the payment
defaults and interest that has continued to accrue after the
maturity date, as well as other costs and expenses of CIP
reimbursable by the Borrowers, the Borrowers currently owe CIP
$43 million.
LeMond Objects
According to an article by Jacqueline Palank at The Wall Street
Journal's Bankruptcy Beat, cyclist, club member and Blixseth
creditor Greg LeMond contends CIP's offer is "paltry" compared to
the $56 million offer the would-be purchaser made just a few years
ago. The article says among Mr. LeMond's objections to the deal
is a lack of justification for the $8.5 million price tag,
especially given CIP's prior effort to nab the property.
"CIP was scheduled to pay $56 million for the family compound
approximately one and one-half years ago and secured the property
with $35 million in mortgages," Mr. LeMond said in court papers,
according to the article. "Clearly, CIP believes, and the property
is, worth much more than the paltry $8.5 million offer."
About Edra D. Blixseth
Edra D. Blixseth owns the Porcupine Creek Golf Club in Rancho
Mirage and the Yellowstone Club in Montana. Ms. Blixseth filed
for Chapter 11 bankruptcy protection on March 26, 2009 (Bankr. D.
Mont. Case No. 09-60452). Gary S. Deschenes, Esq., at Deschenes &
Sullivan Law Offices assists Ms. Blixseth in her restructuring
efforts. The Debtor listed $100 million to $500 million in assets
and $500 million to $1 billion in debts.
The Hon. Ralph B. Kirscher of the U.S. Bankruptcy Court for the
District of Montana converted Ms. Blixseth's Chapter 11
reorganization case to a Chapter 7 liquidation proceeding.
EL JEFE'S PROPERTIES: Case Summary & 1 Unsecured Creditor
---------------------------------------------------------
Debtor: El Jefe's Properties, LLC
1350 Imperia Drive
Henderson, NV 89052
Bankruptcy Case No.: 10-10606
Chapter 11 Petition Date: January 15, 2010
Court: United States Bankruptcy Court
District of Nevada (Las Vegas)
Judge: Meredith A. Jury
Debtor's Counsel: Andrew J. Driggs, Esq.
Driggs Law Group
312 Glistening Cloud Drive
Henderson, NV 89012
Tel: (702) 270-2150
Fax: (702) 270-2125
Email: andrew@driggslawgroup.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
The Debtor identified Nevada State Development Corp. with a debt
claim (Building and Real Property located at 9925 S. Eastern Ave,
Las Vegas, Nevada) for $1,500,000 ($2,975,000 secured) ($2,139,000
senior lien) as its largest unsecured creditor. A full-text copy
of the Debtor's petition, including a list of its largest
unsecured creditor, is available for free at:
http://bankrupt.com/misc/nvb10-10606.pdf
The petition was signed by Kathleen Reichardt, manager of the
Company.
EMISPHERE TECHNOLOGIES: McGladrey Replaces PwC as Accountants
-------------------------------------------------------------
Emisphere Technologies, Inc., on January 6, 2010, dismissed
PricewaterhouseCoopers LLP as the Company's independent registered
public accountants. The action was approved on January 6 by the
Audit Committee of the Board of Directors of the Company.
With the approval of the Audit Committee of the Company, the
Company engaged McGladrey & Pullen, LLP, to act as its independent
registered public accounting firm.
PwC's audit reports on the Company's financial statements as of
and for the years ended December 31, 2008 and 2007 did not contain
an adverse opinion or a disclaimer of opinion and were not
qualified or modified as to uncertainty, audit scope or accounting
principles, except that for each of the years ended December 31,
2008 and 2007 PwC's reports contained an explanatory paragraph
expressing substantial doubt about the Company's ability to
continue as a going concern.
During the Company's two most recent fiscal years ended
December 31, 2007 and 2008 and the subsequent interim periods
through January 6, 2010, there were no disagreements with PwC on
any matter of accounting principles or practices, financial
statement disclosure, or auditing scope or procedure, which
disagreements, if not resolved to the satisfaction of PwC, would
have caused PwC to make reference to the matter in their reports.
As noted in its quarterly report on Form 10-Q for the quarter
ended September 30, 2009, and quarterly reports on Forms 10-Q/A
for the quarters ended June 30, 2009 and March 31, 2009, the
Company identified a material weakness in its internal controls
over financial reporting and disclosure controls and procedures
with respect to ineffective controls to ensure completeness and
accuracy with regard to the proper recognition, presentation and
disclosure of conversion features of certain convertible debt
instruments and warrants. The Audit Committee discussed the
material weakness with PwC, and the Company has authorized PwC to
respond fully to the inquiries of McGladrey & Pullen, LLP, the
successor independent registered public accounting firm, regarding
the material weakness.
Bankruptcy Warning/Going Concern
At September 30, 2009, the Company's consolidated balance sheets
showed $9.2 million in total assets and $49.7 million in total
liabilities, resulting in a $40.5 million shareholders' deficit.
At September 30, 2009, Emisphere reported cash and restricted cash
of $7.2 million, compared to $1.5 million at June 30, 2009.
In December, Emisphere said Novartis Pharma AG has agreed to
extend the maturity date of Emisphere's Convertible Promissory
Note to February 26, 2010. The $10 million original principal
amount Note, plus interest accrued to date, was originally issued
to Novartis on December 1, 2004, in connection with the Research
Collaboration and Option License Agreement between the parties of
that date and was originally due on December 1, 2009.
In its quarterly report for the period ended September 30, 2009,
the Company disclosed approximately $12.5 million was due as
payment of the Novartis Note on December 1, 2009.
The Company had said assuming it would be able to satisfy its
obligation under the Novartis Note by some means other than the
use of its existing capital resources, it anticipates its existing
cash resources would enable it to continue operations only through
approximately February 2010. The Company had warned it could be
forced into bankruptcy had it been declared in default under the
Novartis Note.
Further, the Company has significant future commitments and
obligations. The Company said these conditions raise substantial
doubt about its ability to continue as a going concern.
Consequently, the audit opinion issued by the Company's
independent registered public accounting firm relating to the
Company's financial statements for the year ended December 31,
2008, contained a going concern explanatory paragraph.
About Emisphere Technologies
Based in Cedar Knolls, New Jersey, Emisphere Technologies, Inc.
(OTC BB: EMIS) -- http://www.emisphere.com/-- is a
biopharmaceutical company that focuses on a unique and improved
delivery of pharmaceutical compounds and nutritional supplements
using its Eligen(R) Technology. The Eligen(R) Technology can be
applied to the oral route of administration as well other delivery
pathways, such as buccal, rectal, inhalation, intra-vaginal or
transdermal.
EMRISE CORP: Short Term Forbearance Agreement Extended to Jan. 25
-----------------------------------------------------------------
Emrise Corporation has extended an existing short term forbearance
agreement with its lender through January 25, 2010.
On December 30, 2009, EMRISE and certain of its subsidiaries
entered into a short-term forbearance agreement with its lender,
whereby the lender agreed, among other things, to not exercise
remedies with respect to any default of the financial covenants as
currently in effect under the credit agreement until and through
January 15, 2010, which date, via this extension, is now modified
to January 25, 2010. Under the terms of the December 30, 2009
agreement, the lender agreed to accept a reduced monthly principal
payment from the Company under the credit agreement in the amount
of $150,000 (reduced from $287,000) for the month of January 2010,
which EMRISE has subsequently paid. The short-term forbearance
and this extension to that agreement is contingent upon no
additional events of default occurring under the credit agreement.
The parties have agreed that they will continue to negotiate the
terms of a longer forbearance period. There can be no assurance
that the parties will reach a satisfactory agreement.
About EMRISE Corporation
EMRISE Corporation (NYSE Arca: ERI) -- http://www.emrise.com/--
designs, manufactures and markets electronic devices, sub-systems
and equipment for aerospace, defense, industrial and
communications markets. EMRISE products perform key functions
such as power supply and power conversion; radio frequency (RF)
and microwave signal processing; and network access and timing and
synchronization of communications networks. Primary growth driver
applications for EMRISE products include the use of its RF devices
in radio-controlled improvised explosive device (RCIED) jamming
systems, and the use of its Network Timing and Synchronization
products in edge networks. EMRISE serves customers in North
America, Europe and Asia through operations in the United States,
England and France. The Company has built a worldwide base of
customers including a majority of the Fortune 100 in the U.S. that
do business in markets served by EMRISE and many similar-size
companies in Europe and Asia.
EQUINOX HOLDINGS: S&P Assigns 'B' Rating on $400 Mil. Notes
-----------------------------------------------------------
Standard & Poor's Ratings Services assigned New York City-based
Equinox Holdings Inc.'s proposed $400 million second-lien notes
due 2016 its issue-level rating of 'B' (at the same level as S&P's
'B' corporate credit rating on the company). S&P also assigned
this proposed debt a recovery rating of '3', indicating S&P's
expectation of meaningful (50%-70%) recovery for lenders in the
event of a payment default. The company will use transaction
proceeds to refinance its existing debt. S&P will withdraw its
issue-level and recovery ratings on the existing debt following a
successful closing of the transaction.
At the same time, S&P affirmed its 'B' corporate credit rating on
Equinox. The rating outlook is stable.
"The 'B' corporate credit rating reflects Equinox's thin interest
coverage, geographic concentration, relatively small scale, high
debt leverage, and aggressive club expansion plans, along with the
increasingly competitive conditions in the fitness club market and
various adverse effects from the recession," said Standard &
Poor's credit analyst Tulip Lim. "The company's upscale brand
franchise, strong New York City club cluster, and good profit
margins are modest positive factors that do not offset these
risks."
Equinox operates upscale fitness clubs offering spas and ancillary
services. The company currently has 50 clubs and is expanding its
footprint by adding new clubs in various markets. While new
markets can increase geographic diversification, they increase
business and financial risk over the near term. Equinox has
meaningful regional concentration; the majority of its clubs are
in the New York metropolitan area. The New York-based clubs will
continue to generate the bulk of the company's cash flow over the
medium term. However, the revenue concentration in the New York
Metropolitan area has decreased to about 60% of overall revenue in
2009, down from more than 75% in 2005.
Discretionary cash flow was positive for the 12 months ended
Sept. 30, 2009, due to lower capital spending. S&P expects
discretionary cash flow to remain positive in 2009 and 2010 as
capital spending is curtailed. Working capital needs are low
because members either pay upfront or through electronic funds
transfer.
Pro forma for the transaction, lease-adjusted EBITDA coverage of
interest (including PIK interest at the holding company level) was
thin at 1.3x for the 12 months ended Sept. 30, 2009. Unadjusted
EBITDA coverage of cash interest was 2.0x -- a deterioration from
2.6x at the end of 2008. This is due the lower proportion of PIK
debt under the proposed capital structure. The new holding
company notes will have a slightly lower coupon than existing
holding company notes, beginning at 13% for three years, 14% for
the following two years, and then 15% until maturity. These rate
increases could pressure interest coverage unless EBITDA grows at
a higher rate. Pro forma for the transaction, lease-adjusted
total debt (including holding company notes) to EBITDA remained at
8x -- about the same as that of 2008. S&P does not expect debt
leverage to improve materially in 2010. The accretion on the new
holding company notes will likely limit the extent of the
improvement in debt leverage from EBITDA growth.
ERICKSON RETIREMENT: Morgan Stanley Joins Creditors Committee
-------------------------------------------------------------
Pursuant to Section 1102 of the Bankruptcy Code, William T.
Neary, the United States Trustee for Region 6, filed with the
United States Bankruptcy Court for the Northern District of Texas
on January 8, 2010, an amended notice of appointment of the
Official Committee of Unsecured Creditors in the Chapter 11 cases
of Erickson Retirement Communities, LLC, and its 15 debtor
affiliates to add Morgan Stanley. Windsor OH Holdings, LLC, was
removed as member of the Creditors Committee.
The present Committee members are:
(1) BNY Mellon Corporate Trust
Default Administration Group
Attn: Gary S. Bush
101 Barclay Street, 8W Floor
New York, NY 10286
Tel: (212) 815-2747
Fax: (732) 667-4734
gary.bush@bny.mellon.com
(2) W.H. Boyer
Attn: Evan S. Diamond
2945 Route 97
Glenwood, MA 21738
Tel: (410) 442-2100
Fax: (410) 442-2036
ediamond@whboyer.com
(3) Regional Construction Resources, Inc.
Attn: Sergio Luciani
15460 Pin Oak Drive
Conroe, TX 77384
Tel: (713) 789-5131
Fax: (713) 789-5575
(4) Northwest Electric, Inc.
Attn: Stephen W. Porter
12442 Owings Mills Blvd.
P.O. Box 37
Reiterstown, MA 21136
Tel: (410) 526-4555
Fax: (410) 526-4554
nweelec@aol.com
(5) La Posada at Park Centre, Inc.
Attn: Paul Ide
350 E. Morningside
Green Valley, AZ 85614
Tel: (520) 648-7901
Fax: (520) 648-8397
www.cfo@laposadagv.com
(6) Morgan Stanley
Attn: Andrew S. Bauman
1585 Broadway, 37th Floor
New York, NY 10036
Tel: (212) 761-4468
Fax: (212) 507-4861
Andrew.Bauman@morganstanley.com
About Erickson Retirement
The Baltimore, Maryland-based Erickson Retirement Communities LLC
owns 20 continuing care retirement communities in 11 states.
Among Erickson's 20 communities, eight are completed, 11 are open
although in construction, and one is in development. They have
23,000 residents in total.
Erickson, along with affiliates, filed for Chapter 11 on Oct. 19,
2009 (Bankr. N.D. Tex. Case No. 09-37010). DLA Piper LLP (US)
serves as counsel to the Debtors. BMC Group Inc. serves as claims
and notice agent. Houlihan, Lokey, Howard & Zoukin, Inc., is also
serving as investment and financial consultant. Alvarez & Marsal
is serving as restructuring adviser.
As of September 30, 2009, on a book value basis, ERC had
approximately $2.7 billion in assets, including $2.2 billion of
property and equipment, and $3.0 billion in liabilities.
Liabilities include $195.8 million on the revolving credit,
$347.5 million on construction credit, $64 million in accounts
payable, $47.8 million in subordinate debt, and $475 million in
purchase option deposits.
Bankruptcy Creditors' Service, Inc., publishes Erickson Retirement
Bankruptcy News. The newsletter tracks the Chapter 11 proceedings
of Erickson Retirement Communities LLC and its debtor-affiliates.
(http://bankrupt.com/newsstand/or 215/945-7000)
ERICKSON RETIREMENT: Panel Wants Appropriate Plan Value Allocation
------------------------------------------------------------------
The Official Committee of Unsecured Creditors in Erickson
Retirement Communities LLC and its affiliates' cases asks the
Court to determine the allocation of value for the Debtors' First
Amended Joint Plan of Reorganization.
The Committee essentially complains that the Amended Plan's
proposed allocations of value and distributions run afoul of
Sections 506 and 552 of the Bankruptcy Code by permitting the
Debtors' prepetition lenders to recover against assets and value
created by the Debtors after the Petition Date and to which their
alleged prepetition liens do not, and cannot, extend to.
The Committee thus asks the Court to convene an evidentiary
hearing on these aspects of the Amended Plan:
(1) New 10-Year Management Agreements
(2) Causes of Action and Avoidance Actions
(3) ERC Corporate Cash on Hand
Samuel Stricklin, Esq., at Bracewell & Giuliani LLP, in Dallas,
Texas, points out that the primary driver of Redwood Capital
Investments, LLC's $365 million cash bid on the Debtors' assets
-- the right to new 10 year management agreements -- is an asset
that was created after the Petition Date and thus, pursuant to
Section 552, is not subject to any prepetition liens.
Mr. Stricklin also notes that the Debtors' avoidance actions with
a face amount of $627 million were among the assets sold to
Redwood. He maintain that many of those payments may have been
made in ordinary course of business and are subject to review by
the Committee. Thus, he contends that those potential claims are
not subject to the lien of any lender, including Redwood as the
postpetition financing lender. The Committee further argues that
transfer of the potential preference and fraudulent conveyance
actions to Redwood with no allocated value is inappropriate.
As part of the sale, Redwood is acquiring ERC corporate cash on
hand of up to $10 million. Mr. Stricklin insists that the
Debtors' allocations of value and proposed Plan distributions
fail to take into account that any cash generated after the
Petition Date from management fees is unencumbered under Section
552 and should be preserved for the benefit of general unsecured
creditors. Similarly, Mr. Stricklin points out, almost all of
the Debtors' existing management agreements were terminated prior
to the Petition Date. Thus, any cash generated from the services
rendered by the Debtors' employees under those agreements is not
subject to the liens of prepetition lenders and should be
allocated accordingly, he maintains.
Against this backdrop, the Committee insists that an evidentiary
hearing will ensure a legal and equitable allocation of value and
avoid wasting the Court's time and the Debtors' limited estate
resources with a Disclosure Statement hearing that cannot result
in any success or progress.
About Erickson Retirement
The Baltimore, Maryland-based Erickson Retirement Communities LLC
owns 20 continuing care retirement communities in 11 states.
Among Erickson's 20 communities, eight are completed, 11 are open
although in construction, and one is in development. They have
23,000 residents in total.
Erickson, along with affiliates, filed for Chapter 11 on Oct. 19,
2009 (Bankr. N.D. Tex. Case No. 09-37010). DLA Piper LLP (US)
serves as counsel to the Debtors. BMC Group Inc. serves as claims
and notice agent. Houlihan, Lokey, Howard & Zoukin, Inc., is also
serving as investment and financial consultant. Alvarez & Marsal
is serving as restructuring adviser.
As of September 30, 2009, on a book value basis, ERC had
approximately $2.7 billion in assets, including $2.2 billion of
property and equipment, and $3.0 billion in liabilities.
Liabilities include $195.8 million on the revolving credit,
$347.5 million on construction credit, $64 million in accounts
payable, $47.8 million in subordinate debt, and $475 million in
purchase option deposits.
Bankruptcy Creditors' Service, Inc., publishes Erickson Retirement
Bankruptcy News. The newsletter tracks the Chapter 11 proceedings
of Erickson Retirement Communities LLC and its debtor-affiliates.
(http://bankrupt.com/newsstand/or 215/945-7000)
ERICKSON RETIREMENT: Status Conference Continued to Jan. 22
-----------------------------------------------------------
Judge Jernigan of the United States Bankruptcy Court for the
Northern District of New York convened a status conference on
January 13, 2010, to discuss the possibility of a global
mediation in the Chapter 11 cases of Erickson Retirement
Communities, LLC, and its debtor affiliates.
The January 13, 2010 status conference addressed certain concerns
that could affect the timing of a plan and a prompt resolution of
the Debtors' bankruptcy cases, namely:
(1) The Official Committee of Unsecured Creditors' request to
take broad discovery from National Senior Campuses, Inc.
Not-for-Profit entities Riderwood Village, Inc., Brooksby
Village, Inc., Seabrook Village, Inc., Cedar Crest
Village, Inc., Ann's Choice, Inc., Fox Run Village, Inc.,
Highland Springs Inc., Wind Crest, Inc., Oak Crest
Village, Inc., Greenspring Village, Inc., Maris Grove,
Inc., Ashby Ponds, Inc., Eagle's Trace, Inc., Hickory
Chase, Inc., and Tallgrass Creek, Inc., regarding:
-- their negotiations with Redwood Capital Investments,
LLC and with other potential purchasers;
-- certain significant charitable contributions and
expense reimbursements that are proposed to be paid to
the NSC NFPs as part of a Redwood transaction; and
-- related issues;
(2) The desire of the Committee and the project lenders to
have a hearing regarding the Motion to Amend Initial Order
on Initial Entrance Deposits and Motion for More
Protections on Initial Entrance Deposits that the
Committee has raised relative to postpetition cash flow at
the project level;
(3) The desire of the Committee to know definitively, prior to
solicitation of the Debtors' First Amended Joint Plan of
Reorganization, how value is to be allocated under the
Amended Plan;
(4) The desire of the defendants in the Sale Leaseback
Recharacterization Adversary Proceedings to compel
production of documents from the Debtors;
(5) The desire of the Debtors to have a quick adjudication of
the Sale Leaseback Recharacterization Adversaries; and
(6) The request by the defendants in the Sale Leaseback
Recharacterization Adversary Proceedings to have an
examiner appointed in the Debtors' bankruptcy cases.
Before the January 13 status conference was held, the Debtors
told the Court that after consultation with representatives of
project lenders, corporate lenders, the Committee, and subdebt
holders, they came up with this framework:
January 11, 2010 -- The Debtors circulated a confidential
Valuation Analysis and Allocation Proposal
prepared by Houlihan Lokey Howard & Zukin
Capital, financial advisor to the Debtors,
to all parties-in-interest. The Proposal
represents the Debtors' view of the proper
allocation of sale proceeds and provides a
starting point for settlement discussions.
January 12, 2010 -- Meeting for presentation of the Proposal by
Houlihan Lokey and discussion of Houlihan
Lokey's overall allocation methodology.
January 13, 2010 -- Meeting with financial advisors, attorneys
and clients to discuss a global allocation
of the sale proceeds.
Week of Jan. 18 -- If necessary, a follow-up meeting will be
held.
Counsel to the Debtors, Vincent P. Slusher, Esq., at DLA Piper
LLP, in Dallas, Texas, related that the aim of the framework is
to reach a final resolution of the valuation and allocation
issues to permit confirmation of the Debtors' Amended Plan. If
not all parties are in agreement, the Debtors will propose a
valuation and allocation to the Court for its determination.
At the January 13 status conference, Judge Jernigan noted that
she heard reports about the Debtors' efforts since January 7,
2010, to bring parties-in-interest together, to negotiate an
appropriate allocation of proceeds among creditors from the
proposed sale of the Debtors' assets to Redwood. Judge Jernigan
said that the Court is encouraged by the progress reported by the
Debtors in setting up a framework to hopefully resolve valuation
and allocation issues. However, Judge Jernigan stated that the
Court continues to desire a prompt resolution of the issues,
given the nature of the Debtors' business and the more than
20,000 residents who are affected.
More importantly, the Court believes that it is critical that the
Debtors and creditors strive to resolve allocation/valuation
issues as expeditiously as possible without needlessly prolonging
these Chapter 11 cases and without needlessly increasing
professional and other administrative expenses in the Debtors'
Chapter 11 cases.
Nevertheless, the Court acknowledged two issues that arose
recently:
(i) The Committee's Motion for Appropriate Value Allocation
under the Amended Plan; and
(ii) PNC Bank, National Association's and Capmark Finance,
Inc.'s Motions to Disband Creditors Committee in certain
Debtors' Chapter 11 cases.
Against this backdrop, the Court continues the Status Conference
to January 22, 2010, to further discuss the possibility of a
global mediation.
The Court will also convene a pre-trial conference on January 22,
2010, to discuss, among others, the appropriate timing for an
evidentiary hearing on the Valuation Motion and the Motions to
Disband.
About Erickson Retirement
The Baltimore, Maryland-based Erickson Retirement Communities LLC
owns 20 continuing care retirement communities in 11 states.
Among Erickson's 20 communities, eight are completed, 11 are open
although in construction, and one is in development. They have
23,000 residents in total.
Erickson, along with affiliates, filed for Chapter 11 on Oct. 19,
2009 (Bankr. N.D. Tex. Case No. 09-37010). DLA Piper LLP (US)
serves as counsel to the Debtors. BMC Group Inc. serves as claims
and notice agent. Houlihan, Lokey, Howard & Zoukin, Inc., is also
serving as investment and financial consultant. Alvarez & Marsal
is serving as restructuring adviser.
As of September 30, 2009, on a book value basis, ERC had
approximately $2.7 billion in assets, including $2.2 billion of
property and equipment, and $3.0 billion in liabilities.
Liabilities include $195.8 million on the revolving credit,
$347.5 million on construction credit, $64 million in accounts
payable, $47.8 million in subordinate debt, and $475 million in
purchase option deposits.
Bankruptcy Creditors' Service, Inc., publishes Erickson Retirement
Bankruptcy News. The newsletter tracks the Chapter 11 proceedings
of Erickson Retirement Communities LLC and its debtor-affiliates.
(http://bankrupt.com/newsstand/or 215/945-7000)
EXTERRA ENERGY: Posts $413,282 Net Loss in November 30 Quarter
--------------------------------------------------------------
Exterra Energy, Inc., reported a net loss of $413,282 on oil and
gas sales of $65,031 for the three months ended November 30, 2009,
compared with a net loss of $1,577,182 on oil and gas sales of
$80,931 for the three months ended November 30, 2008.
The Company attributes the decrease in net loss primarily to the
oil and gas property impairment of $1,207,558 recognized in the
three month period ended November 30, 2008, and efficient
management controls in the three month period ended November 30,
2009.
For the six months ended November 30, 2009, the Company reported
oil and gas sales of $137,423 and a net loss of $665,014, compared
to oil and gas sales of $274,177 and a net loss of $2,057,199 for
the six months ended November 30, 2008.
Balance Sheet
At November 30, 2009, the Company's balance sheet showed total
assets of $2,413,832 and total liabilities of $2,791,868,
resulting in a stockholders' deficit of $378,036.
The Company's balance sheet at November 30, 2009, also showed
strained liquidity with $74,487 in total current assets available
to pay $2,665,582 in total current liabilities.
A full-text copy of the Company's quarterly report on Form 10-Q is
available for free at http://researcharchives.com/t/s?4d8c
Going Concern Doubt
As reported in the Troubled Company Reporter on October 19, 2009,
Malone & Bailey PC, in Houston, Texas, expressed substantial doubt
about Exterra Energy, Inc.'s ability to continue as a going
concern after auditing the Company's financial statements as of
and for the years ended May 31, 2009, and 2008. The auditing firm
cited that the Company has not yet established an ongoing source
of revenues sufficient to cover its operating costs and has
defaulted on certain outstanding notes payable.
About Exterra Energy
Based in Amarillo, Texas, Exterra Energy Inc. was incorporated on
February 3, 2006, in the State of Nevada as Green Gold Inc. The
Company was engaged in the exploration for jade. Initial efforts
focused on the Green Gold Jade Property in British Columbia,
Canada.
The Company's business direction was changed in 2006 in order to
capitalize on the increasing availability of opportunistic
acquisitions in the energy sector. In December 2006, the Company
acquired interests in four oil and gas assets, the Burnett,
Wuckowitsch and the University Lands leases, as well as a 9%
Working Interest in the Henry Dome prospect, all located in Texas,
USA. In December 2007, the Company sold the Burnett and
Wuckowitsch leases.
In July 2007, the Company changed its name to Exterra Energy, Inc.
FAIRPOINT COMMUNICATIONS: Great Works Gets Ally in Billing Row
--------------------------------------------------------------
Law360 reports that Great Works Internet, a competitive local
exchange carrier in Maine that provides phone and broadband
systems in competition with FairPoint Communications Inc., has
gained the support of the state's public advocate in a $3 million
billing fight.
FairPoint Communications, Inc. (NYSE: FRP) --
http://www.fairpoint.com/-- is an industry leading provider of
communications services to communities across the country.
FairPoint owns and operates local exchange companies in 18 states
offering advanced communications with a personal touch, including
local and long distance voice, data, Internet, television and
broadband services. FairPoint is traded on the New York Stock
Exchange under the symbols FRP and FRP.BC.
Fairpoint and its affiliates filed for Chapter 11 on Oct. 26, 2009
(Bankr. D. Del. Case No. 09-16335). Rothschild Inc. is acting as
financial advisor for the Company; AlixPartners, LLP as the
restructuring advisor; and Paul, Hastings, Janofsky & Walker LLP
is the Company's counsel. BMC Group is claims and notice agent.
As of June 30, 2009, Fairpoint reported $3.24 billion in total
assets, $321.41 million in total current liabilities,
$2.91 billion in total long-term liabilities, and $1.23 million in
total stockholders' equity.
Bankruptcy Creditors' Service, Inc., publishes Fairpoint
Communications Bankruptcy News. The newsletter tracks the Chapter
11 proceedings of Fairpoint Communications Inc. and its debtor-
affiliates. (http://bankrupt.com/newsstand/or 215/945-7000)
FAMILY WORSHIP: Voluntary Chapter 11 Case Summary
-------------------------------------------------
Debtor: Family Worship Center
3633 Highway 162
Granite City, IL 62040
Bankruptcy Case No.: 10-30066
Chapter 11 Petition Date: January 13, 2010
Court: United States Bankruptcy Court
Southern District of Illinois (East St Louis)
Judge: Kenneth J. Meyers
Debtor's Counsel: Neil Weintraub, Esq.
1515 N Warson Road, Suite 232
St. Louis, MO 63132
Tel: (314) 890-8800
Fax: (314) 890-9416
Email: weintraublaw@sbcglobal.net
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $500,001 to $1,000,000
The Debtor did not file a list of its 20 largest unsecured
creditors when it filed its petition.
The petition was signed by Eddy G. Brown, president of the
Company.
FILI ENTERPRISES: Sends Daphne's Greek Restaurants to Chapter 11
----------------------------------------------------------------
Fili Enterprises Inc., which owns the Daphne's Greek Cafe, filed
for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court
in San Diego, California (Bankr. S.D. Calif. Case No. 10-00324),
listing assets and liabilities of between $10 million and $50
million.
Fili Enterprises operates 67 Greek restaurants mostly in Southern
California. Fili also does business under the names Daphne's
Greek Express.
Bank of America, a secured creditor, is owed $12.9 million.
According to Bill Rochelle at Bloomberg News, Fili will be asking
for permission to use cash even though the bank doesn't consent.
Fili also will be asking for authority to borrow $1 million on a
revolving credit to have security ahead of the bank.
Unsecured and priority creditors are owed $3.7 million. U.S.
Foodservice Inc., owed $1.1 million, is the unsecured creditor
with the largest listed claim.
Chief Executive George Katakalidis said that sales declined
12% over the last two years. He said that the Company was unable
to secure more favorable terms from lenders. Mr. Katakalidis, a
former professional soccer player, founded the company in 1988.
DLA Piper LLP (US) has been tapped as counsel.
FIRST MIDWEST: Not Placed on Rating Watch Negative by Fitch
-----------------------------------------------------------
Fitch Ratings has corrected a release issued on Jan. 8, 2010. It
clarifies that the support floor and support ratings for FMBI and
First Midwest Bank were not placed on Rating Watch Negative as was
stated in the original release.
Fitch has placed the long-term Issuer Default Ratings of First
Midwest Bancorp, Inc., and its subsidiary, First Midwest Bank on
Rating Watch Negative.
The rating action reflects Fitch's view that FMBI's commercial
real estate loan portfolio presents potential pressures on
earnings and capital that may warrant a rating downgrade. FMBI's
exposure to CRE loans, including construction loans, comprises
nearly 56% of total loans and over 500% of tangible common equity
at Sept. 30, 2009, which represents a much larger exposure than
similarly rated peers.
In August 2009, Fitch initiated an expanded review of CRE
exposures for banking and thrift institutions, beginning with a
survey aimed at obtaining detailed data on the CRE portfolios of
companies rated by Fitch. The information gained from the CRE
survey provided a framework for Fitch to examine specific areas of
concern across the banking industry, conduct more uniform stress
tests and assess if rating actions are needed to reflect what will
likely be continued deterioration in asset quality. Fitch's
assessment of FMBI's CRE data is ongoing. Fitch is placing its
ratings on Rating Watch Negative pending a more in-depth review of
the company's CRE portfolio. Fitch plans to undertake a more
focused review of FMBI's CRE portfolio to assess potential ranges
of estimated losses, and their relative impact on profitability
and capital over the near-term. At the conclusion of that review,
FMBI will resolve the Rating Watch Negative.
This review concentrated in particular on credit risk and
capitalization.
Fitch places these ratings on Rating Watch Negative:
First Midwest Bancorp, Inc.
-- Long-term IDR 'BBB';
-- Individual 'C';
-- Subordinated debt 'BBB-';
-- Preferred stock 'BB+';
-- Short-term IDR 'F2'.
First Midwest Bank
-- Long-term IDR 'BBB';
-- Individual 'C';
-- Long-term deposits 'BBB+';
-- Short-term IDR 'F2';
-- Short-term deposits 'F2'.
First Midwest Capital Trust I
-- Preferred stock 'BB+'.
These ratings remain unchanged:
First Midwest Bancorp, Inc.
-- Support '5';
-- Support floor 'NF'.
First Midwest Bank
-- Support '5';
-- Support floor 'NF'.
FONTAINEBLEAU LAS VEGAS: Given Exclusivity Until March 1
--------------------------------------------------------
Bill Rochelle at Bloomberg News reports that Fontainebleau Las
Vegas LLC sought and obtained an extension until March 1 of the
exclusive right to propose a Chapter 11 plan. Its unfinished
hotel-casino is currently scheduled for auction on Jan. 21 with
the first bid of $156.5 million coming from a company affiliated
with Carl Icahn. Fontainebleau hopes sale will be completed in
early February.
About Fontainebleau Las Vegas
Fontainebleau Las Vegas -- http://www.fontainebleau.com/-- is
constructing a luxury resort, Fontainebleu Las Vegas, on the
northern end of the Las Vegas Strip.
Fontainebleau Las Vegas Holdings, LLC, Fontainebleau Las Vegas,
LLC, Fontainebleau Las Vegas Capital Corp. filed for Chapter 11
protection on June 9, 2009 (Bankr. S.D. Fla. Lead Case No.
09-21481). Judge A. Jay Cristol presides over the Debtors' cases.
Scott L Baena, Esq., at Bilzin Sumberg Baena Price & Axelrod LLP,
represents the Debtors in their restructuring efforts. The
Debtors' Financial Advisor are Moelis & Company LLC and Citadel
Derivatives Group LLC. The Debtors' Special Litigation Counsel is
David M. Friedman, Esq., at Kasowitz, Benson, Torres & Friedman
LLP and the Debtors' Special Counsel is Jack J. Kessler, Esq., and
Alan Rubin, Esq., at Buchanan Ingersoll & Rooney PC. The Debtors'
Claims Agent is Kurtzman Carson Consulting LLC. Attorneys at
Genovese Joblove & Battista, P.A., and Fox Rothschild, LLP,
represent the Official Committee of Unsecured Creditors.
As of June 9, 2009, Fontainebleau Las Vegas LLC listed more than
$1 billion in debt and a similar amount in assets, while each of
Fontainebleau Las Vegas Capital Corp. and Fontainebleau Las Vegas
Holdings, LLC, listed less than $50,000 in assets and more than
$1 billion in debts.
Bankruptcy Creditors' Service, Inc., publishes Fontainebleau
Bankruptcy News. The newsletter tracks the Chapter 11 proceedings
of Fontainebleau Las Vegas Holdings, LLC, and its debtor-
affiliates. (http://bankrupt.com/newsstand/or 215/945-7000)
FORUM NATIONAL: Amends Financials for Fiscal 2007
-------------------------------------------------
Forum National Investments Ltd. has filed Amendment No. 5 on Form
20-F/A to its annual report for the transition year ended
September 30, 2007, orignally filed with the Securities and
Exchange Commision on April 1, 2008. The Company changed its
fiscal year end from December 31st to September 30th of each year.
Forum National Investments Ltd. reported a net loss of C$2,212,467
on revenues of C$2,572,638 for the nine-month period ended
September 30, 2007, compared to net income of C$875,355 on
revenues of C$3,984,551 for the year ended December 31, 2006.
The net loss for the transition year ended September 30, 2007, is
due largely as a result of the stock-based compensation charges of
C$2,944,536 from issuance of stock options during the fiscal
period.
Fiscal year for September 30, 2007, includes 9 months for
comparison and does not include the October 2007 purchase of
Family Vacation Centers.
Balance Sheet
At September 30, 2007, the Company's consolidated balance sheets
showed total assets of C$20,035,886, total liabilities of
C$7,109,643, and total shareholders' equity of C$12,926,243.
A full-text copy of the Company's Form 20-F/A is available at no
charge at http://researcharchives.com/t/s?4d86
Fiscal 2008 Results
On May 15, 2009, the Company reported financial results for its
fiscal year ended September 30, 2008.
The Company reported net income of C$2,302,438 on revenues of
$9,417,264 for fiscal 2008.
At September 30, 2008, the Company had total assets of
C$26,203,359, total liabilities of C$10,944,678, and total
shareholders' equity of C$15,258,681.
A full-text copy of the Company's fiscal 2008 annual report on
Form 20-F is available for free at:
http://researcharchives.com/t/s?4d87
Going Concern Doubt
For the nine-month period ended September 30, 2007, the Company
had a net loss of C$2,212,467 compared to net income of C$875,355
and C$1,651,804 for the years ended December 31, 2006, and 2005,
respectively. For the nine-month period ended September 30, 2007,
the Company used cash in operating activities in the amount of
C$83,554 (C$82,228 for the year ended December 31, 2006, and
generated cash of C$394,102 for the year ended December 31, 2005)
and at September 30, 2007, had a working capital surplus of
C$7,532,298 (deficiency of C$415,387 at December 31, 2006) and
shareholders' equity of C$12,926,243 (December 31, 2006 -
C$2,802,178).
The Company believes these conditions cast substantial doubt on
the going concern assumption of the Company.
About Forum National
Based in Richmond, B.C., Canada, Forum National Investments Ltd.
has three lines of business:
-- The Company owns and operates travel clubs under the name of
Snowbird Vacations and Family Vacations Centers. In addition
to accessing a full service travel agency and other travel
benefits, travel club members are entitled to rent vacation
ownership rentals from a broad variety of participating
resorts at wholesale rates.
-- The company owns a passenger carrying yacht the 120' MV
Spirit of 2010 which is continuing its refit. The vessel is
for charter cruises to the Pacific Northwest, Alaska and Baja
Mexico in addition to day cruises from its home port in
Vancouver, B.C.
-- The Company has entered the Life Settlement market. A life
settlement is the purchase of an existing life insurance
policy by a third party. The third party then continues to
make the premiums payments until the policy has matured and
at that time receives the benefits.
FRANK ANTHONY CUDA: Case Summary & 4 Largest Unsecured Creditors
----------------------------------------------------------------
Joint Debtors: Frank Anthony Cuda
Pamela Bennett Cuda
PO Box 427
Panacea, FL 32346
Bankruptcy Case No.: 10-40037
Chapter 11 Petition Date: January 15, 2010
Court: United States Bankruptcy Court
Northern District of Florida (Tallahassee)
Debtors' Counsel: Allen Turnage, Esq.
Law Office of Allen Turnage
P.O. Box 15219
2344 Centerville Road, Suite 101
Tallahassee, FL 32317
Tel: (850) 224-3231
Fax: (850) 224-2535
Email: service.attyallen@embarqmail.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
A full-text copy of the Debtors' petition, including a list of
their 4 largest unsecured creditors, is available for free at:
http://bankrupt.com/misc/flnb10-40037.pdf
The petition was signed by the Joint Debtors.
FRONTERA COPPER: Receives Series 1 Notes Default Notice
-------------------------------------------------------
Frontera Copper Corporation received Thursday a formal default
notice from CIBC Mellon Trust Company, the Trustee under the
Indenture governing the Series 1 Senior Notes. The notice was
received as a consequence of the Company's failure to make the
December 15, 2009 interest payment on those Notes.
The Company anticipates announcing its proposed restructuring of
the Series 1 and Series 2 Notes along with other information on
January 18, 2010.
Frontera Copper Corporation -- http://www.fronteracopper.com/--
is a Canada-based company formed to acquire and bring into
production the Piedras Verdes project. The Company owns or
controls the Piedras Verdes Mine through its 81% direct interest
in Cobre del Mayo, S.A. de C.V. (CDM), and its 19% indirect
interest in CDM, through its wholly owned subsidiary, Frontera
Cobre del Mayo, Inc. (FCDM). The Piedras Verdes property consists
of 27 mineral concessions. CDM directly owns 22 titled
concessions totaling 3,581.29 hectares. During the year ended
December 31, 2008, the Piedras Verdes operations produced
41.6 million pounds of copper cathode and sold 41.8 million pounds
of copper. In May 2009, the Company was acquired by 0839073 BC
Ltd., a wholly owned subsidiary of Invecture Group, S.A. de C.V.
GENERAL DATACOMM: Posts $5,568,000 Net Loss in Fiscal 2009
----------------------------------------------------------
General DataComm Industries, Inc. and subsidiaries reported a net
loss of $5,568,000 on total revenues of $8,700,000 for the year
ended September 30, 2009, compared to a net loss of $3,035,000 on
total revenues of $11,188,000 for the year ended September 30,
2008.
Product revenues decreased $2,106,000, or 23.3%, while service
revenues decreased $382,000, or 17.8%, from the prior year.
The product sales decrease was due to large orders in fiscal 2008
from three customers for network expansion that did not repeat in
fiscal 2009.
The decrease in service revenue was primarily due to expiration of
a service contract in Europe where the customer transitioned to
alternate networking technology, and to subcontract work for a
large telephone company in 2008 that did not repeat in 2009.
Financial Statements are Unaudited
The Company's financial statements for the fiscal years ended
September 30, 2009, and 2008, have not been audited. The Company
says it has limited financial resources and had been negotiating
audit fees with its audit firm. The negotiations delayed the
start of the fiscal 2008 audit and on January 5, 2009, the audit
firm terminated its audit relationship with the Company. The
Company is in the process of appointing new auditors but is
currently unable to finalize this appointment due to limited
financial resources for the payment of the audit fees.
Balance Sheet
At September 30, 2009, the Company's consolidated balance sheets
showed $6,410,000 in total assets and $46,269,000 in total
liabilities, resulting in a $39,859,000 shareholders' deficit.
The Company's consolidated balance sheets at September 30, 2009,
also showed strained liquidity with $3,101,000 in total current
assets available to pay $41,300,000 in total current liabilities.
A full-text copy of the Company's unaudited consolidated financial
statements for the year ended September 30, 2009, is available at
no charge at http://researcharchives.com/t/s?4d7a
Going Concern Doubt
On November 2, 2001, the Company and its domestic subsidiaries
filed a voluntary petition for relief under Chapter 11 of the
Bankruptcy Code in the United States Bankruptcy Court for the
District of Delaware. The Company emerged from Chapter 11
effective on September 15, 2003, pursuant to a court-approved plan
of reorganization. Under this plan, the Company was to pay all
creditors 100% of their allowed claims based upon a five year
business plan. Debentures were issued to unsecured creditors as
part of the plan of reorganization. However, the Company has not
met its business plan objectives since emerging from Chapter 11
and, therefore, there can be no assurance that any such
outstanding claims will be paid.
The Company incurred a net loss and used a significant amount of
cash in its operating activities for the year ended September 30,
2009. The Company has no current ability to borrow or otherwise
secure additional funds. In addition, at September 30, 2009, the
Company had a stockholders' deficit of $39,859,000 and a working
capital deficit of $38,199,000, including debentures in the
principal amount of $19,367,000, which matured on October 1, 2008.
While a subordinated security agreement signed by the indenture
trustee on behalf of the debenture holders provides that no
payments may be made to debenture holders, and that no event of
default may be declared under the indenture, while senior secured
debt is outstanding, in the absence of such restrictions the
Company does not have the ability to repay the debentures. As of
September 30, 2009, senior secured debt consists of notes payable
to related parties and a real estate mortgage. A failure to pay
the debentures when they become due and payable as described
above, could result in an event of default being declared under
the indenture governing the debentures.
"The conditions described above raise substantial doubt about the
Company's ability to continue as a going concern."
About General DataComm
Based in Naugatuck, Connecticut, General DataComm Industries Inc.
(OTC: GNRD) -- http://www.gdc.com/-- is a provider of networking
and telecommunications products, services and solutions. The
Company designs, develops, assembles, markets, sells, installs and
maintains products that enable telecommunications common carriers,
corporations, and governments to build, improve and more cost
effectively manage their global telecommunications networks.
The Company's products and services are marketed worldwide through
a combination of direct sales and distribution channels.
GENMAR HOLDINGS: Boat-Making Business Sales Officially Approved
---------------------------------------------------------------
Genmar Holdings Inc. received formal authorization from the
Bankruptcy Court to sell the assets. Genmar Holdings disclosed
that all of its assets have been sold in accordance with an
auction process. The highest bidders for the assets were: (1)
Platinum Equity's acquisition of essentially all of the assets for
$70 million; (2) J&D Acquisitions, LLC's acquisition of
Carver/Marquis for $6.05 million; and (3) MCBC Hydra Boats, LLC's
acquisition of Hydra-Sport for $1 million. The closing date of
the transactions is scheduled for January 20.
About Genmar Holdings, Inc.
Pulaski, Wisconsin-based Carver Italia, LLC, and its affiliates,
including Genmar Holdings, Inc. -- http://www.genmar.com/--
is the world's second-largest manufacturer of fiberglass
powerboats. It generated $460 million in annual revenue making
boats using brand names including Carver, Four Winns, Glastron,
Larson, and Wellcraft.
Genmar and an affiliate filed for Chapter 11 bankruptcy protection
on June 1, 2009 (Bankr. D. Minn. Case No. 09-33773, and 09-43537).
James L. Baillie, Esq., and Ryan Murphy, Esq., at Fredrikson &
Byron, PA, assist the Debtors in their restructuring efforts.
Carver Italia listed $10 million to $50 million in assets and
$100 million to $500 million in debts.
Manchester Companies, Inc., was named Chief Restructuring Officer
of Genmar and approved by the Bankruptcy Court in June and has
been managing the company's restructuring process since then.
GRIFFIN & SHULA: Case Summary & 20 Largest Unsecured Creditors
--------------------------------------------------------------
Debtor: Griffin & Shula Enterprises, Inc.
PO Box 1792
Dothan, AL 36302
Bankruptcy Case No.: 10-10068
Chapter 11 Petition Date: January 15, 2010
Court: United States Bankruptcy Court
Middle District of Alabama (Dothan)
Judge: William R. Sawyer
Debtor's Counsel: Margaret Baxley, Esq.
Baxley Law Firm LLC
407 Honeysuckle Rd, Suite 100
Dothan, AL 36305
Tel: (334) 699-7800
Fax: (334) 699-7937
Email: mlabaxleyal@gmail.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
A full-text copy of the Debtor's petition, including a list of its
20 largest unsecured creditors, is available for free at:
http://bankrupt.com/misc/almb10-10068.pdf
The petition was signed by Porter Griffin, president/chairman of
board of directors of the Company.
HACIENDA STRUCTURES: Case Summary & 3 Largest Unsecured Creditors
-----------------------------------------------------------------
Debtor: Hacienda Structures, LLC
8045 West Hacienda Ave.
Las Vegas, NV 89113
Bankruptcy Case No.: 10-10437
Chapter 11 Petition Date: January 13, 2010
Court: United States Bankruptcy Court
District of Nevada (Las Vegas)
Judge: Linda B. Riegle
Debtor's Counsel: Yvette R. Freedman, Esq.
John Peter Lee, Ltd
830 Las Vegas Blvd, SO
Las Vegas, NV 89101
Tel: (702) 382 4044
Fax: (702) 383 9950
Email: info@johnpeterlee.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
According to the schedules, the Company has assets of $2,431,400,
and total debts of $3,779,746.
A full-text copy of the Debtor's petition, including a list of its
3 largest unsecured creditors, is available for free at:
http://bankrupt.com/misc/nvb10-10437.pdf
The petition was signed by Hashem Mikail, manager of the Company.
HAIGHTS CROSS: Asks for Court OK to Use Cash Collateral
-------------------------------------------------------
Haights Cross Communications, Inc., et al., sought and obtained
interim approval from the Hon. Brendan L. Shannon of the U.S.
Bankruptcy Court for the District of Delaware to use the cash
collateral of Bank of New York Mellon, the prepetition agent.
The attorney for the Debtors -- Daniel J. DeFranceschi, Esq., et
al., at Richards, Layton & Finger, P.A. -- explained that the
Debtors need the money to fund their Chapter 11 case, pay
suppliers and other parties. The Debtors will use the collateral
pursuant to a budget, a copy of which is available for free at:
http://bankrupt.com/misc/HAIGHTS_CROSS_budget.pdf
In exchange for using the cash collateral, the Debtors propose to
grant the Prepetition Agent additional and replacement security
interests in and liens on any and all of the Debtor's assets. The
Prepetition Agent will also be granted an allowed superpriority
administrative expense claim. The adequate superpriority claim
will be junior only to the carve out for U.S. Trustee and Clerk of
Court fees: up to $1.5 million in fees payable to professional
employed in the Debtors' case; and fees of the committee in
pursuing actions challenging the DIP Lenders' lien.
The Debtors will also provide adequate protection payments to the
Prepetition Agent in the form of: (i) payments of interest on the
prepetition credit obligations at the non-default rate; and (ii)
payments of the fees, costs and expenses of the Prepetition Agent
and the reasonable fees and expenses of Shearman & Sterling LLP
(legal professionals to the plan support parties), Young Conaway
Stargatt & Taylor LLP (Delaware legal professionals to the plan
support parties), McGuire, Craddock & Strother, P.C. (legal
professionals to the Prepetition Agent), and Peter J. Solomon
Company (financial professionals to the plan support parties)
incurred in connection with, among other things, the furtherance
of the transactions contemplated by the plan support agreement.
The Court has set a final hearing for February 8, 2010, at
10:30 a.m. on the Debtors' request to use cash collateral.
Haights Cross Communications, Inc., develops and publishes
products for the kindergarten through grade 12 education and
public library markets. Their products include state-specific
test preparation materials, skills assessment and intervention
books and unabridged audiobooks, and are sold primarily to schools
and public libraries.
The Company filed for Chapter 11 bankruptcy protection on
January 11, 2010 (Bankr. D. Del. Case No. 10-10062). The
Company's affiliates -- Haights Cross Operating Company; Triumph
Learning, LLC; Recorded Books, LLC; and SNEP, LLC -- also filed
bankruptcy petitions. Steven D. Pohl, Esq., and Tally Wiener,
Esq., at Brown Rudnick, assist the Debtors in their restructuring
efforts. Daniel J. DeFranceschi, Esq., Paul N. Heath, Esq., and
Christopher M. Samis, Esq., at Richards, Layton & Finger, P.A.,
are the co-counsel for the Debtors. Houlihan Lokey is the
Debtors' financial advisor.
The Company listed $232,388,000 in assets and $432,741,000 in
liabilities as of June 30, 2009.
HAIGHTS CROSS: Wants to Hire Epiq Bankruptcy as Claims Agent
------------------------------------------------------------
Haights Cross Communications, Inc., et al., sought and obtained
authorization from the Hon. Brendan L. Shannon of the U.S.
Bankruptcy Court for the District of Delaware to employ Epiq
Bankruptcy Solutions, LLC, as claims and noticing agent.
Epiq will, among other things:
a. prepare and serve required notices in the Debtors' Chapter
11 cases;
b. receive and record proofs of claim and proofs of interest
filed;
c. create and maintain official claims registers; and
d. implement necessary security measures to ensure the
completeness and integrity of the claims registers.
Epiq will be paid based on its services agreement with the
Debtors, a copy of which is available for free at:
http://bankrupt.com/misc/HAIGHTS_CROSS_servicespact.pdf
Daniel C. McElhinney, the executive director of Epiq, assures the
Court that the firm is "disinterested" as that term is defined in
Section 101(14) of the Bankruptcy Code.
Haights Cross Communications, Inc., develops and publishes
products for the kindergarten through grade 12 education and
public library markets. Their products include state-specific
test preparation materials, skills assessment and intervention
books and unabridged audiobooks, and are sold primarily to schools
and public libraries.
The Company filed for Chapter 11 bankruptcy protection on
January 11, 2010 (Bankr. D. Delaware Case No. 10-10062). The
Company's affiliates -- Haights Cross Operating Company; Triumph
Learning, LLC; Recorded Books, LLC; and SNEP, LLC -- also filed
bankruptcy petitions. Steven D. Pohl, Esq., and Tally Wiener,
Esq., at Brown Rudnick, assist the Debtors in their restructuring
efforts. Daniel J. DeFranceschi, Esq., Paul N. Heath, Esq., and
Christopher M. Samis, Esq., at Richards, Layton & Finger, P.A.,
are the co-counsel for the Debtors. Houlihan Lokey is the
Debtors' financial advisor.
The Company listed $232,388,000 in assets and $432,741,000 in
liabilities as of June 30, 2009.
HAIGHTS CROSS: Gets Lift Stay for Midwest & Coach Lawsuits
----------------------------------------------------------
The Hon. Brendan L. Shannon of the U.S. Bankruptcy Court for the
District of Delaware has granted the request of Haights Cross
Communications, Inc., et al., to modify the automatic stay to
permit two specified pending litigation actions to proceed.
As of the Petition Date, two actions involving the Debtors are
pending in courts in federal jurisdictions. The pending actions
brought against and by the Debtors allege a variety of state and
federal causes of action namely arising from intellectual property
disputes. According to the Debtors, the breathing period afforded
by the automatic stay is unnecessary in their Chapter 11 cases and
in fact may prove costly, with respect to the two pending
litigation matters:
a. Midwest Tape, LLC's September 2009 lawsuit against
Recorded Books LLC in the U.S. District Court for the
Northern District of Ohio, alleging, among other things,
violations of the Lanham Act (false advertising, copyright
misuse); and
b. Coach Services, Inc.'s March 2006 lawsuit against Triumph
Learning LLC, opposing federal trademark applications
relating to its COACH family of marks, as COACH is Triumph
Learning's leading product line of workbooks published and
sold to schools.
The Debtors said that allowing the pending actions to proceed will
serve to achieve resolution with respect to matters that may
interrupt key business practices should they not be resolved on an
expedited basis.
Haights Cross Communications, Inc., develops and publishes
products for the kindergarten through grade 12 education and
public library markets. Their products include state-specific
test preparation materials, skills assessment and intervention
books and unabridged audiobooks, and are sold primarily to schools
and public libraries.
The Company filed for Chapter 11 bankruptcy protection on
January 11, 2010 (Bankr. D. Del. Case No. 10-10062). The
Company's affiliates -- Haights Cross Operating Company; Triumph
Learning, LLC; Recorded Books, LLC; and SNEP, LLC -- also filed
bankruptcy petitions. Steven D. Pohl, Esq., and Tally Wiener,
Esq., at Brown Rudnick, assist the Debtors in their restructuring
efforts. Daniel J. DeFranceschi, Esq., Paul N. Heath, Esq., and
Christopher M. Samis, Esq., at Richards, Layton & Finger, P.A.,
are the co-counsel for the Debtors. Houlihan Lokey is the
Debtors' financial advisor.
The Company listed $232,388,000 in assets and $432,741,000 in
liabilities as of June 30, 2009.
HAROLD COLE: Voluntary Chapter 11 Case Summary
----------------------------------------------
Debtor: Harold E. Cole
dba Harold E. Cole Antiques
27 Middle Quarter Road
Woodbury, CT 06798
Bankruptcy Case No.: 10-50091
Chapter 11 Petition Date: January 15, 2010
Court: United States Bankruptcy Court
District of Connecticut (Bridgeport)
Debtor's Counsel: Ira B. Charmoy, Esq.
Zeldes Needle & Cooper
1000 Lafayette Blvd
P.O. Box 1740
Bridgeport, CT 06601
Tel: (203) 333-9441
Fax: (203) 333-1489
Email: icharmoy@znclaw.com
Maximino Medina, Jr., Esq.
Zeldes Needle & Cooper
1000 Lafayette Boulevard
P.O. Box 1740
Bridgeport, CT 06601
Tel: (203) 333-9441
Fax: (203) 333-1489
Email: mmedina@znclaw.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $500,001 to $1,000,000
The petition was signed by Mr. Cole.
HAWAIIAN TELCOM: Court OKs Kirkland's $1.13MM in Fees
-----------------------------------------------------
Pursuant to Sections 330 and 331 of the Bankruptcy Code,
Bankruptcy Judge Lloyd King authorizes Hawaiian Telcom
Communications Inc. to pay the fees and expenses of these
professionals for services rendered from July 1, 2009
through September 30, 2009:
Firm Fees Expenses
---- ---------- --------
Ernst & Young LLP $105,321 $0
Deloitte & Touche LLP $292,361 $0
Lazard Freres & Co. LLC $600,000 $15,290
Cades Schutte LLP $242,986 $2,119
Kirkland & Ellis LLP $1,135,206 $50,893
Deloitte & Touche's allowed fees include $36,657 for the state of
Hawaii's General Excise Tax for the same fee period.
Cades Schutte is also allowed $11,485 for the State of Hawaii'
General Excise Tax for the same period.
Kirkland & Ellis' allowed fees and expenses reflect a reduction
of $5,000, consented to by the parties pursuant to an agreement
with the United States Trustee for Region 15.
Kirkland & Ellis and Cades Schutte serve as counsel to the
Debtors. Deloitte is the Debtors' independent auditors. Ernst &
Young acts as tax auditors to the Debtors, and Lazard Freres is
the Debtors' investment banker.
About Hawaiian Telcom
Based in Honolulu, Hawaii, Hawaiian Telcom Communications, Inc.
-- http://www.hawaiiantel.com/-- operates a telecommunications
company, which offers an array of telecommunications products and
services including local and long distance service, high-speed
Internet, wireless services, and print directory and Internet
directory services.
The Company and seven of its affiliates filed for Chapter 11
protection on December 1, 2008 (Bankr. D. Del. Lead Case No.
08-13086). As reported by the TCR on December 30, 2008, Judge
Peter Walsh of the U.S. Bankruptcy Court for the District of
Delaware approved the transfer of the Chapter 11 cases to the U.S.
Bankruptcy Court for the District of Hawaii before Judge Lloyd
King (Bankr. D. Hawaii Lead Case No. 08-02005).
Richard M. Cieri, Esq., Paul M. Basta, Esq., and Christopher J.
Marcus, Esq., at Kirkland & Ellis LLP, represent the Debtors in
their restructuring efforts. The Debtors proposed Lazard Freres &
Co. LLC as investment banker; Zolfo Cooper Management LLC as
business advisor; Deloitte & Touche LLP as independent auditors;
and Kurztman Carson Consultants LLC as notice and claims agent.
An official committee of unsecured creditors has been appointed
and is represented by Christopher J. Muzzi, Esq., at Moseley Biehl
Tsugawa Lau & Muzzi LLC, in Honolulu, Hawaii.
When the Debtors filed for protection from their creditors, they
listed total assets of $1,352,000,000 and total debts of
$1,269,000,000 as of September 30, 2008.
Bankruptcy Creditors' Service, Inc., publishes Hawaiian Telcom
Bankruptcy News. The newsletter tracks the Chapter 11 proceeding
undertaken by Hawaiian Telcom Communications, Inc., and seven of
its affiliates. (http://bankrupt.com/newsstand/or 215/945-7000)
HAWAIIAN TELCOM: Gets Nod for Stipulation With USAC
---------------------------------------------------
Hawaiian Telcom Communications Inc. and its units sought and
obtained the Court's permission to enter into an agreement with
Universal Service Administrative Company, whereby the Debtors
agree to pay $787,102 to the federal Universal Service Fund to
address USAC's claim.
Every interstate telecommunications carrier, including certain of
the Debtors, is required under federal law to make monthly
contributions to the Universal Service Fund. USAC administers
the USF under the direction of the Federal Communications
Commission. As permitted by applicable federal regulations, the
Debtors collect USF contributions from their customers and remit
the amounts collected from customers to the USF on a monthly
basis.
As of the Petition Date, the Debtors owed the USF $787,102 on
account of contributions collected from customers during the
period from November 1, 2008, through the Petition Date. The
Debtors previously sought the Bankruptcy Court's authority to pay
the USF Fees, but the Court denied the payment request.
Theodore D.C. Young, Esq., at Kirkland & Ellis LLP, in Honolulu,
Hawaii, discloses that USAC contacted the Debtors and requested
that the Debtors renew the request for authority to pay the USF
Fees. USAC advised the Debtors that it will take all appropriate
steps to ensure that the USF Fees are either remitted to the USF
or returned to the Debtors' customers from which they were
received. The parties also engaged in discussions with respect
to the payment of the USF Fees to USAC. Accordingly, in a
stipulation with USAC, the Debtors agree to satisfy the USAC
Claims on these terms:
(a) The Debtors will pay the USF Fees to the USF immediately
upon entry by the Court of an order approving the Debtors'
Motion; and
(b) Upon receiving notice from the Debtors of payment of the
USF Fees, the Clerk of the Court will expunge the USAC
Claims from the Debtors' claims register and the scheduled
amounts will be deemed satisfied in full.
Given the amount of the USF Fees at issue, it is not an
efficient use of the Debtors' resources at this time to engage in
litigation with USAC over payment of the USF Fees, Mr. Young
points out. A litigation could not only potentially generate
costly legal fees and expenses, but could also damage the
Debtors' ongoing relationship with USAC and the FCC, he
maintains.
About Hawaiian Telcom
Based in Honolulu, Hawaii, Hawaiian Telcom Communications, Inc.
-- http://www.hawaiiantel.com/-- operates a telecommunications
company, which offers an array of telecommunications products and
services including local and long distance service, high-speed
Internet, wireless services, and print directory and Internet
directory services.
The Company and seven of its affiliates filed for Chapter 11
protection on December 1, 2008 (Bankr. D. Del. Lead Case No.
08-13086). As reported by the TCR on December 30, 2008, Judge
Peter Walsh of the U.S. Bankruptcy Court for the District of
Delaware approved the transfer of the Chapter 11 cases to the U.S.
Bankruptcy Court for the District of Hawaii before Judge Lloyd
King (Bankr. D. Hawaii Lead Case No. 08-02005).
Richard M. Cieri, Esq., Paul M. Basta, Esq., and Christopher J.
Marcus, Esq., at Kirkland & Ellis LLP, represent the Debtors in
their restructuring efforts. The Debtors proposed Lazard Freres &
Co. LLC as investment banker; Zolfo Cooper Management LLC as
business advisor; Deloitte & Touche LLP as independent auditors;
and Kurztman Carson Consultants LLC as notice and claims agent.
An official committee of unsecured creditors has been appointed
and is represented by Christopher J. Muzzi, Esq., at Moseley Biehl
Tsugawa Lau & Muzzi LLC, in Honolulu, Hawaii.
When the Debtors filed for protection from their creditors, they
listed total assets of $1,352,000,000 and total debts of
$1,269,000,000 as of September 30, 2008.
Bankruptcy Creditors' Service, Inc., publishes Hawaiian Telcom
Bankruptcy News. The newsletter tracks the Chapter 11 proceeding
undertaken by Hawaiian Telcom Communications, Inc., and seven of
its affiliates. (http://bankrupt.com/newsstand/or 215/945-7000)
HAWAIIAN TELCOM: Seeks Cash Collateral Access Until Emergence
-------------------------------------------------------------
Hawaiian Telcom Communications, Inc., and its debtor affiliates
sought and obtained approval from the United States Bankruptcy
Court for the District of Hawaii on January 14, 2010, for
continued access to the cash collateral of their Prepetition
Lenders, on a consensual basis, through and including the
effective date of the Debtors' Confirmed Amended Joint Plan of
Reorganization.
The Court entered a formal order confirming the Debtors' Amended
Chapter 11 Plan on December 30, 2009. The Amended Plan has yet
to be declared effective and its terms and conditions fully
consummated.
The Court's current ruling is the Sixth Cash Collateral Extension
Order, whereby the Debtors will provide to the Agent for the
Prepetition Lenders, on an ongoing basis:
(a) The current cash payment of interest at the non-default
rates at the times provided for in the Prepetition Credit
Agreement; provided, however that during the period from
March 1, 2009 up to the Effective Date, those obligations
will be satisfied by:
-- the payment of cash interest calculated at the non-
default rates with respect to $300 million of the
outstanding Senior Secured Debt; and
-- the deemed payment of interest with respect to the
balance of the outstanding Senior Secured Debt;
(b) Cash payments equal to all accrued and unpaid non-default
rate interest, fees and expenses when due and owing under
the Prepetition Financing Documents; and
(c) From time to time after the Petition Date, the current
cash payment of documented fees and expenses as and when
due and payable under the Prepetition Financing Documents,
including, fees and expenses of legal counsel and other
professionals retained by the Prepetition Lenders.
Theodore D.C. Young, Esq., at Cades Schutte LLP, in Honolulu,
Hawaii, maintained that the current form of adequate protection
provided by the Debtors to the Prepetition Lenders continues to
be appropriate given the situation of the Debtors' Chapter 11
cases. He noted that the December 30, 2009 Confirmation Order
was agreed upon by the Debtors, the Prepetition Lenders and the
Official Committee of Unsecured Creditors and resolved
essentially all of the outstanding disputes in the Debtors'
Chapter 11 cases, including any disputes related to the use of
Cash Collateral.
Thus, with all disputes related to the Amended Plan resolved, the
Debtors have commenced the regulatory approval process required
by the Hawaii Public Utilities Commission and the Federal
Communications Commission, according to Mr. Young. They are
moving expeditiously to exit these Chapter 11 cases, he said.
Moreover, the Debtors averred that they continue to meet their
minimum liquidity needs. They further believe that they will
continue to meet those needs for the duration of their Chapter 11
cases and upon emergence.
Simultaneous with the Cash Collateral Order, at the Debtors'
behest, Judge King also ruled amounts owing under certain "Swap
Agreements" are deemed to be $7,672,746 for JPMorgan Chase Bank,
N.A. and $7,665,935 for Goldman Sachs Bank USA. This particular
request is to account for an increase in the amount of the claim
JPMorgan Chase seeks, from $7,602,034 to $7,672,746 as of
December 30, 2009.
Judge King further authorizes the Debtors to make adjustments to
the cash and payable-in-kind portions of the Adequate Protection
Payments made after the date of entry of the Sixth Cash
Collateral Order so that all of the Prepetition Lenders'
aggregate cash and payable in kind portions of the Adequate
Protection Payments will equal the amounts that the Prepetition
Lenders would have received had the claim of JPMorgan been
allowed for $7,672,746 since the Petition Date.
A full-text copy of the Sixth Cash Collateral Order is available
for free at http://bankrupt.com/misc/HawTel_6thCashCollOrd.pdf
About Hawaiian Telcom
Based in Honolulu, Hawaii, Hawaiian Telcom Communications, Inc.
-- http://www.hawaiiantel.com/-- operates a telecommunications
company, which offers an array of telecommunications products and
services including local and long distance service, high-speed
Internet, wireless services, and print directory and Internet
directory services.
The Company and seven of its affiliates filed for Chapter 11
protection on December 1, 2008 (Bankr. D. Del. Lead Case No.
08-13086). As reported by the TCR on December 30, 2008, Judge
Peter Walsh of the U.S. Bankruptcy Court for the District of
Delaware approved the transfer of the Chapter 11 cases to the U.S.
Bankruptcy Court for the District of Hawaii before Judge Lloyd
King (Bankr. D. Hawaii Lead Case No. 08-02005).
Richard M. Cieri, Esq., Paul M. Basta, Esq., and Christopher J.
Marcus, Esq., at Kirkland & Ellis LLP, represent the Debtors in
their restructuring efforts. The Debtors proposed Lazard Freres &
Co. LLC as investment banker; Zolfo Cooper Management LLC as
business advisor; Deloitte & Touche LLP as independent auditors;
and Kurztman Carson Consultants LLC as notice and claims agent.
An official committee of unsecured creditors has been appointed
and is represented by Christopher J. Muzzi, Esq., at Moseley Biehl
Tsugawa Lau & Muzzi LLC, in Honolulu, Hawaii.
When the Debtors filed for protection from their creditors, they
listed total assets of $1,352,000,000 and total debts of
$1,269,000,000 as of September 30, 2008.
Bankruptcy Creditors' Service, Inc., publishes Hawaiian Telcom
Bankruptcy News. The newsletter tracks the Chapter 11 proceeding
undertaken by Hawaiian Telcom Communications, Inc., and seven of
its affiliates. (http://bankrupt.com/newsstand/or 215/945-7000)
HAWKEYE RENEWABLES: US Trustee Unable to Form Creditors Committee
-----------------------------------------------------------------
Roberta A. DeAngelis, the Acting U.S. Trustee for Region 3,
notified the U.S. Bankruptcy Court for the District of Delaware
that she was unable to appoint an official committee of unsecured
creditors in the Chapter 11 cases of Hawkeye Renewables, LLC,
et al.
The U.S. Trustee related that there were insufficient number of
unsecured creditors that have expressed interest in serving on a
committee.
Ames, Iowa-based Hawkeye Renewables, LLC -- dba Iowa Falls Ethanol
Plant, LLC -- filed for Chapter 11 bankruptcy protection on
December 21, 2009 (Bankr. D. Delaware Case No. 09-14461). L.
Katherine Good, Esq., and Mark D. Collins, Esq., at Richards,
Layton & Finger, P.A., assist the Company in its restructuring
effort. Blackstone Advisory Partners, LP, is the Company's
financial advisor. Epiq Bankruptcy Solutions, LLC, is the
Company's claims agent. The Company listed $100,000,001 to
$500,000,000 in assets and $500,000,001 to $1,000,000,000 in
liabilities.
HAWKEYE RENEWABLES: Wants Schedules Filing Date Moved to March 22
-----------------------------------------------------------------
Hawkeye Renewables, LLC, et al., ask U.S. Bankruptcy Court for the
District of Delaware to extend until March 22, 2010, the time to
file its schedules of assets and liabilities, schedules of
executory contracts and unexpired leases, schedules of current
income and expenditures, and statement of financial affairs.
Ames, Iowa-based Hawkeye Renewables, LLC -- dba Iowa Falls Ethanol
Plant, LLC -- filed for Chapter 11 bankruptcy protection on
December 21, 2009 (Bankr. D. Del. Case No. 09-14461). L.
Katherine Good, Esq., and Mark D. Collins, Esq., at Richards,
Layton & Finger, P.A., assist the Company in its restructuring
effort. Blackstone Advisory Partners, LP, is the Company's
financial advisor. Epiq Bankruptcy Solutions, LLC, is the
Company's claims agent. The Company listed $100,000,001 to
$500,000,000 in assets and $500,000,001 to $1,000,000,000 in
liabilities.
HEARTLAND PUBLICATIONS: Bonuses for 2009 Approved
-------------------------------------------------
Heartland Publications LLC won approval from the Bankruptcy Court
to pay $225,000 on bonuses to officers and employees for work in
2009. The U.S. Trustee unsuccessfully argued that most of the
program represented retention bonuses prohibited by Congress.
Heartland also secured final approval to use cash.
There was insufficient interest from unsecured creditors in
forming an official committee, according to the U.S. Trustee.
Heartland Publications LLC filed a reorganization plan that
proposes to give a new $70 million term loan and 90% of the new
equity to holders of $113.7 million in prepetition first-lien
debt. According to the disclosure statement, if the prepetition
second lien lenders owed $44.9 million vote for the Plan, they
will receive a class of equity interests representing 5% of equity
value above an enterprise value of $100 million. The second-lien
lenders would also receive warrants for 5% of the equity based on
an equity value of $50 million. Unsecured creditors are to be
paid in full if second-lien creditors vote for the Plan.
About Heartland Publications
Headquartered in Clinton, Connecticut, Heartland Publications, LLC
-- http://www.heartlandpublications.com/-- operates 50 paid-
circulation newspapers and numerous free or controlled
distribution products in Georgia, Kentucky, North and South
Carolina, Ohio, Oklahoma, Tennessee, Virginia and West Virginia.
The Company reaches more than 250,000 print subscribers each month
and many others via interactive Web sites. The Company operates
50 paid-circulation newspapers and numerous free or controlled
distribution products in nine states.
Heartland Publications, LLC -- aka Macon County Times, et al. --
filed for Chapter 11 bankruptcy protection on December 21, 2009
(Bankr. D. Del. Case No. 09-14459). Kenneth J. Enos, Esq., and
Robert S. Brady, Esq., at Young, Conaway, Stargatt & Taylor,
assist the Company in its restructuring effort. Duff & Phelps,
Securities LLC is the Debtor's financial advisor. Epiq Bankruptcy
Solutions is the Debtor's claims and notice agent. As of
October 31, 2009, the Debtor has $134.3 million in assets and
$166.2 million in liabilities.
ICOP DIGITAL: Receives Non-Compliance Notice From NASDAQ
--------------------------------------------------------
ICOP Digital, Inc. disclosed that, on January 13, 2010, it
received a NASDAQ Staff Determination letter indicating that
because ICOP had not regained compliance with the $1.00 minimum
bid price requirement for continued listing, as set forth in
NASDAQ Listing Rule 5550(a)(2), ICOP's securities would be subject
to delisting from The NASDAQ Capital Market unless ICOP requests a
hearing before a NASDAQ Listing Qualifications Panel by
January 20, 2010. ICOP intends to timely request a hearing before
the Panel. As a result, ICOP's securities will remain listed on
The NASDAQ Capital Market until the Panel renders its final
determination following the hearing. In connection with the
hearing, ICOP intends to submit a plan outlining its strategy for
regaining compliance with the continued listing requirements.
Under NASDAQ's Listing Rules, the Panel may, in its discretion,
determine to continue the Company's listing pursuant to an
exception to the Rule for a maximum of 180 calendar days from the
date of the Staff's notification or through July 12, 2010.
However, there can be no assurances that the Panel will do so or
that the Company's plans to exercise diligent efforts to maintain
the listing of its securities on NASDAQ will be successful.
About ICOP Digital, Inc.
ICOP Digital, Inc. -- http://www.ICOP.com/-- is a leading
provider of in-car video and mobile video solutions for Law
Enforcement, Fire, EMS, Military, and Transportation markets,
worldwide. ICOP solutions help the public and private sectors
mitigate risks, reduce losses, and improve security through the
live streaming, capture and secure management of high quality
video and audio.
IRVINE SENSORS: Issues Shares of Common Stock to Investors
----------------------------------------------------------
Irvine Sensors Corporation issued 400,000 shares of common stock
to an accredited institutional investor upon the investor's
conversion on Dec. 10, 2009 of $160,000 of the stated value of the
Series A-1 10% Cumulative Convertible Preferred Stock of the
Company. In addition, the Company also issued:
* an aggregate of 2,700,000 shares of common stock to the same
investor upon such investor's successive conversions on Dec.
31, 2009 of an aggregate of $1,080,000 of the stated value of
the Series A-1 Stock.
* 93,700 shares of common stock to another accredited investor
upon such investor's conversion on Dec. 31, 2009 of
$37,480 of the stated value of the Series A-1 Stock.
* 245,900 shares of common stock to the same investor upon such
investor's conversion on Dec. 31, 2009 of $98,360 of the
stated value of the Series A-2 10% Cumulative Convertible
Preferred Stock of the Company.
As a result of the issuances on Dec. 31, 2009, the Company has
issued more than 5% of its outstanding shares of common stock in
unregistered transactions in the aggregate since the last report
that it filed with the Securities and Exchange Commission.
About Irvine Sensors
Irvine Sensors Corporation -- http://www.irvine-sensors.com/--
headquartered in Costa Mesa, California, is a vision systems
company engaged in the development and sale of miniaturized
infrared and electro-optical cameras, image processors and stacked
chip assemblies and sale of higher level systems incorporating
such products and research and development related to high density
electronics, miniaturized sensors, optical interconnection
technology, high speed network security, image processing and low-
power analog and mixed-signal integrated circuits for diverse
systems applications.
Optex Systems, Inc., a Texas corporation and a wholly owned
subsidiary of Irvine Sensors, on September 21, 2009, filed a
voluntary petition for relief under Chapter 7 of the United States
Bankruptcy Code in the United States Bankruptcy Court in
California.
* * *
Grant Thornton LLP in Irvine, California, in a letter dated
January 9, 2009, pointed out that the Company incurred net losses
of $21.6 million, $22.1 million, and $8.4 million for the years
ended September 28, 2008, September 30, 2007, and October 1, 2006,
respectively, and the Company has a working capital deficit of
$16.1 million at September 28, 2008. "These factors, among
others, raise substantial doubt about the company's ability to
continue as a going concern."
JIMMY HARDEN: Case Summary & 15 Largest Unsecured Creditors
-----------------------------------------------------------
Joint Debtors: Jimmy B. Harden
dba Harden Farms
Gwen Harden
dba Harden Farms
4016 Charleston Road
Stanton, TN 38069
Bankruptcy Case No.: 10-20349
Chapter 11 Petition Date: January 13, 2010
Court: United States Bankruptcy Court
Western District of Tennessee (Memphis)
Judge: David S. Kennedy
Debtors' Counsel: Stephanie Green Cole, Esq.
100 North Main Building, Suite 2601
Memphis, TN 38103
Tel: (901) 575-8712
Fax: (901) 575-8717
Email: offices@bellsouth.net
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
A full-text copy of the Debtors' petition, including a list of
their 15 largest unsecured creditors, is available for free at:
http://bankrupt.com/misc/tnwb10-20349.pdf
The petition was signed by the Joint Debtors.
JLT ENTERPRISES: Case Summary & 20 Largest Unsecured Creditors
--------------------------------------------------------------
Debtor: JLT Enterprises, Inc.
650 Henderson Drive, PMB 771
Cartersville, GA 30120
Bankruptcy Case No.: 10-40129
Chapter 11 Petition Date: January 13, 2010
Court: United States Bankruptcy Court
Northern District of Georgia (Rome)
Debtor's Counsel: Frank B. Wilensky, Esq.
Macey, Wilensky, Kessler & Hennings, LLC
Suite 2700, 230 Peachtree Street, NW
Atlanta, GA 30303-1561
Tel: (404) 584-1200
Fax: (404) 681-4355
Email: smcconnell@maceywilensky.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
A full-text copy of the Debtor's petition, including a list of its
20 largest unsecured creditors, is available for free at:
http://bankrupt.com/misc/ganb10-40129.pdf
The petition was signed by Jeff L. Tibbitts, secretary/treasurer
of the Company.
JOHN DAVIS: Case Summary & 20 Largest Unsecured Creditors
---------------------------------------------------------
Joint Debtors: John C. Davis
Renee B. Davis
26491 Riverbank Road
Salisbury, MD 21801
Bankruptcy Case No.: 10-10877
Chapter 11 Petition Date: January 14, 2010
Court: United States Bankruptcy Court
District of Maryland (Baltimore)
Judge: Duncan W. Keir
Debtors' Counsel: Michael E. Crowson, Esq.
The Law Firm Of Ann Shaw, P.A.
212 W. Main Street Suite 303
Salisbury, MD 21801
Email: michael@lawislocal.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $10,000,001 to $50,000,000
According to the schedules, the Company has assets of $1,579,115,
and total debts of $20,325,444.
A full-text copy of the Debtors' petition, including a list of
their 20 largest unsecured creditors, is available for free at:
http://bankrupt.com/misc/mdb10-10877.pdf
The petition was signed by the Joint Debtors.
JURGIELEWICZ DUCK FARM: Files Chapter 11 in New York
----------------------------------------------------
Jurgielewicz Duck Farm filed for Chapter 11 protection on Jan. 12
in Central Islip, New York (Bankr. E.D.N.Y. Case No. 10-70231,
saying assets and debt are both $1 million to $10 million.
The bankruptcy filing resulted from "general economic conditions,"
increased costs for feed and fuel, and a levy by the Internal
Revenue Service on assets of an affiliate that also filed.
Jurgielewicz Duck Farm is a partnership that's the largest duck
producer on New York's Long Island. Jurgielewicz is one of the
five major producers of white Peking ducks in the U.S. It is also
the only producer of free-range ducks on Long Island. The
development rights for the farm were sold in 2007 to the town of
Brookhaven.
Robinson Brog Leinwand Greene Genovese & Gluck PC has been
retained as bankruptcy counsel.
JASSEM SHOE: Files for Chapter 11 in Los Angeles
------------------------------------------------
Jassem Shoe Corp., doing business as David's Shoes, filed a
bare-bones Chapter 11 petition on Jan. 12 in Los Angeles (Bankr.
C.D. Calif. Case No. 10-11211). David's Shoes, a retailer of
designer shoes, has one of its two locations in Beverly Hills.
The petition says assets are less than $1 million while debt
exceeds $1 million.
LANDAMERICA FIN'L: District Court to Hear De Maio Appeal Jan. 20
----------------------------------------------------------------
To recall, LandAmerica Financial Group, Inc., and its debtor
affiliates obtained confirmation of their Chapter 11 Plan last
November 23, 2009. The Plan was subsequently declared effective
on December 7, 2009.
Certain parties continued to insist on the inappropriateness of
certain plan provisions in the period shortly before and after
the Confirmation Order and the Effective Date Notice were
released. Among them are California Controller John Chiang, the
Commingled Exchanger Committee, Oracle USA Inc., Louis De Maio,
and Safdar N. Lilak.
Just before the Confirmation Order was released, the California
Controller sought and obtained an order for the consideration of
his Plan objection on the topic of Intercompany Claims on an
expedited basis. To Mr. Chiang's objection, the Debtors
maintained that an Intercompany Carve Out is provided under the
Plan. The Official Committee of Unsecured Creditors of
LandAmerica Financial Group, Inc., stated arguments similar to
that of the Debtors.
Just a day before the Court entered the Confirmation Order, the
Commingled Exchanger Committee reserved its rights and that of
its members to contest the purported determination of the amount
of its allowed claims under the Plan.
Oracle USA, on the other hand, objected after the Confirmation
Order Date to the assumption of its Software License and Services
Agreement pursuant to the Plan. The Debtors identified the cure
amount for the License Agreement as $0. Oracle argued that the
proposed cure is incorrect and maintains that its records reflect
a cure amount of not less than $99,109.
Safdar N. Lilak, for its part, filed a document with the Court on
January 4, 2010, stating that he does not object to the confirmed
Chapter 11 Plan provided that it is implemented under the Court's
supervision and all disputes and claims are satisfied judicially
and justly. Mr. Lilak has initiated a "Quiet Title Action"
against LandAmerica Financial Group, Inc. and certain defendants
over certain land dispute, whereby he is asserting $485,000 in
financial damages.
Moreover, in a recent ruling, the Court has stricken from the
docket Louis J. De Maio, Esq.'s petition to reject the Debtors'
Chapter 11 Plan. Prior to entry of the Court's ruling, Mr. Maio
said, in separate letters to Court, that he unalterably opposed
to the inappropriate and untimely Motion to Strike. Mr. De Maio
asserted that he has a legal right to protect and object to the
improper expungement of his valid claim. Mr. De Maio thus
sought and obtained a separate order from the Court for an
extension of the time to file a notice of appeal. Mr. De Maio
seeks to appeal the disallowance of his late filed Claim No. 2326
pursuant to the Court's Order on the Debtors' 11th Omnibus Claims
Objection dated November 2, 2009.
Appeal on Confirmation Order
Louis J. De Maio notified the Bankruptcy Court on December 8,
2009, that it is taking an appeal to the United States District
Court for the Eastern District Virginia of Bankruptcy Judge
Huennekens' November 23, 2009 ruling on the confirmation of the
Joint Chapter 11 Plan of LandAmerica Financial Group, Inc. and
its debtor affiliates.
Judge Huennekens directs Mr. De Maio to appear before the
Bankruptcy Court on January 20, 2010, at 2:00 p.m., and show cause
why his Notice of Appeal should not be stricken as untimely and as
not in compliance with Rule 8001(a) of the Federal Rules of
Bankruptcy Procedure.
The Bankruptcy Clerk previously issued a notice of deficient
filing for Mr. De Maio's failure to conform to Bankruptcy Rule
8001(a) as the Notice of Appeal failed to substantially conform
to Official Form 17 and failed to contain the names of all
parties to the judgment, order, or decree appealed from and the
names, addresses, and telephone numbers of their respective
attorneys.
About LandAmerica Financial
LandAmerica Financial Group, Inc., provides real estate
transaction services with offices nationwide and a vast network of
active agents. LandAmerica and its affiliates operate through
approximately 700 offices and a network of more than 10,000 active
agents throughout the world, including Mexico, Canada, the
Caribbean, Latin America, Europe, and Asia.
LandAmerica Financial Group and its affiliate LandAmerica 1031
Exchange Services, Inc. filed for Chapter 11 protection
November 26, 2008 (Bankr. E.D. Va. Lead Case No. 08-35994).
Attorneys at Willkie Farr & Gallagher LLP and McGuireWoods LLP
serve as co-counsel. Zolfo Cooper is the restructuring advisor.
Epiq Bankruptcy Solutions serves as claims and notice agent.
Attorneys at Akin Gump Strauss Hauer & Feld LLP and Tavenner &
Beran, PLC, serve as counsel to the Creditors Committee of 1031
Exchange. Bingham McCutchen LLP and LeClair Ryan serve as counsel
to the Creditors Committee of LFG.
In its bankruptcy petition, LFG listed total assets of
$3,325,100,000, and total debts of $2,839,800,000 as of
September 30, 2008.
On March 6, 2009, affiliate LandAmerica Assessment Corporation,
aka National Assessment Corporation, filed its own petition for
Chapter 11 relief. Affiliate LandAmerica Title Company filed for
for Chapter 11 relief on March 27, 2009. LandAmerica Credit
Services, Inc., filed for Chapter 11 in July 2009.
Bankruptcy Creditors' Service, Inc., publishes LandAmerica
Bankruptcy News. The newsletter tracks the Chapter 11 proceeding
undertaken by LandAmerica Financial and its affiliate LandAmerica
1031 Exchange Services, Inc. (http://bankrupt.com/newsstand/or
215/945-7000)
LANDAMERICA FIN'L: OneStop Wants Removal Period Until June 2
------------------------------------------------------------
As of the Petition Date, Debtor LandAmerica OneStop, Inc., was
party to certain civil actions pending in various forums across
the United States. Pursuant to applicable law and without an
extension, the time within which OneStop may remove any of the
Pending Civil Actions expires on February 2, 2010.
By this motion, OneStop asks the United States Bankruptcy Court
for the Eastern District of Virginia for an order extending the
time by which they may remove actions pursuant to Section 1452 of
the Judiciary and Judicial Procedures and Rules 9006 and 9027 of
the Federal Rules of Bankruptcy Procedure through and including
June 2, 2010.
Section 1452 and Bankruptcy Rule 9027 govern the removal of
pending civil actions related to Chapter 11 cases. Rule 9027
sets forth the time periods for filing notices to remove claims
or causes of action. If the claim or cause of action is pending
when a case under the Bankruptcy Code is commenced, a notice of
removal may be filed within the longest of (i) 90 days after the
Petition Date, (ii) 30 days after the entry of an order
terminating a stay if that claim or cause of action in a civil
action has been stayed under Section 362 of the Bankruptcy Code,
or (iii) 30 days after a trustee qualifies in a Chapter 11
reorganization case, but not later than 180 days after
the order for relief. Bankruptcy Rule 9006 permits the court to
extend the period to remove actions provided by Bankruptcy Rule
9027.
OneStop relates that its decision on whether to seek removal of
any particular Action will depend on a number of factors,
including (i) the importance of the Action to the expeditious
resolution of its Chapter 11 case, (ii) the time required to
complete the Action in its current venue, (iii) the presence of
federal questions in the proceeding that increase the likelihood
that one or more aspects may be heard by a federal court, (iv)
the relationship between the Action and matters to be considered
in connection with the liquidation of the Debtor's business and
the claims administration process, and (v) the progress made to
date in the Action.
According to Paul V. Shalhoub, Esq., at Willkie Farr & Gallagher
LLP, in New York, OneStop has not had an opportunity to
conclusively determine which Actions it will seek to remove at
the current stage of its Chapter 11 case. Since November 4,
2009, Mr. Shalhoub relates, OneStop and its professionals have
been productively focused on activities that are critically
important to its case, including reviewing executory contracts
and unexpired leases for rejection, establishing bar dates and
proof of claim procedures, drafting and approving a disclosure
statement, and soliciting votes for confirmation of a liquidating
Chapter 11 plan.
OneStop and its professionals have begun to reconcile claims in
the Debtor's case, Mr. Shalhoub adds. Consequently, the Debtor
has been addressing time-critical matters. However, it needs
additional time to analyze the Pending Actions and make the
appropriate determinations concerning their removal.
The Court will convene a hearing on January 20, 2010, at
2:00 p.m. to consider OneStop's request. Objections are due on
January 15, 2010.
About LandAmerica Financial
LandAmerica Financial Group, Inc., provides real estate
transaction services with offices nationwide and a vast network of
active agents. LandAmerica and its affiliates operate through
approximately 700 offices and a network of more than 10,000 active
agents throughout the world, including Mexico, Canada, the
Caribbean, Latin America, Europe, and Asia.
LandAmerica Financial Group and its affiliate LandAmerica 1031
Exchange Services, Inc., filed for Chapter 11 protection
November 26, 2008 (Bankr. E.D. Va. Lead Case No. 08-35994).
Attorneys at Willkie Farr & Gallagher LLP and McGuireWoods LLP
serve as co-counsel. Zolfo Cooper is the restructuring advisor.
Epiq Bankruptcy Solutions serves as claims and notice agent.
Attorneys at Akin Gump Strauss Hauer & Feld LLP and Tavenner &
Beran, PLC, serve as counsel to the Creditors Committee of 1031
Exchange. Bingham McCutchen LLP and LeClair Ryan serve as counsel
to the Creditors Committee of LFG.
In its bankruptcy petition, LFG listed total assets of
$3,325,100,000, and total debts of $2,839,800,000 as of
September 30, 2008.
On March 6, 2009, affiliate LandAmerica Assessment Corporation,
aka National Assessment Corporation, filed its own petition for
Chapter 11 relief. Affiliate LandAmerica Title Company filed for
for Chapter 11 relief on March 27, 2009. LandAmerica Credit
Services, Inc., filed for Chapter 11 in July 2009.
Bankruptcy Creditors' Service, Inc., publishes LandAmerica
Bankruptcy News. The newsletter tracks the Chapter 11 proceeding
undertaken by LandAmerica Financial and its affiliate LandAmerica
1031 Exchange Services, Inc. (http://bankrupt.com/newsstand/or
215/945-7000)
LANDAMERICA FIN'L: SEC Opposes Document Requests
------------------------------------------------
Pursuant to Rule 2004 of the Federal Rules of Bankruptcy
Procedure, LandAmerica Financial Group Inc. and its units sought
and obtained permission from the Bankruptcy Court to issue
subpoenas for the production of documents and examine certain
persons or entities determined to have information relevant to
potential non-insider claims related to the sale of certain
Auction Rate Securities in order to assess the viability and
strength of those claims, which potentially constitute a very
valuable asset of the Debtors.
The potential ARS claims arise from purchases of ARS by
LandAmerica 1031 Exchange Services, Inc., a subsidiary of
LandAmerica Financial Group, Inc.
The financial institutions and agencies to which the specific
initial requests will be made include some as yet undetermined
state regulators and:
* SunTrust Robinson Humphrey, Inc.,
* SunTrust Investment Services, Inc.,
* SunTrust Banks, Inc.,
* Citigroup Global Markets Inc.,
* Morgan Stanley Smith Barney LLC,
* Citigroup, Inc.,
* RBC Capital Markets Corporation,
* Royal Bank of Canada,
* U.S. Securities and Exchange Commission, and
* FINRA
SEC Objects
The Securities and Exchange Commission relates that the Debtors
should first seek their requested documents from the "Specified
Financial Institutions" that produced them to the SEC. According
to the SEC, those Institutions produced virtually all of an
estimated two million potentially responsive documents to the SEC
subject to confidentiality requests. Those Institutions may also
have privilege claims regarding some of the produced documents,
including claims that certain privileged documents were
inadvertently produced to the SEC.
In this light, the SEC maintains that it would be more efficient
for the Debtors to address the Rule 2004 Exam issues directly
with the Specified Financial Institutions rather than subpoena
the requested documents from the SEC. The SEC contends that the
Debtors should subpoena documents from it only if the Specified
Financial Institutions no longer possess the documents.
SunTrust Responds
SunTrust Banks Inc., on behalf of itself and its various
affiliates, including SunTrust Robinson Humphrey, Inc. and
SunTrust Investment Services, Inc., asserts that the Court may
not delegate the authority to issue subpoenas to support Rule
2004 examinations to a "special counsel" for the Debtors,
especially where the counsel has a direct financial interest in
the outcome of the potential ARS litigation it is investigating.
Suntrust points out that Jenner & Block, LLP, is not an examiner
and has not been appointed in that capacity in the Debtors'
Chapter 11 cases. Thus, there is nothing "special" about Jenner
& Block to render unto it subpoena powers free from the Court's
initial review or to relieve the Debtors' burden to show good
cause for a Rule 2004 examination, Suntrust maintains.
LFG Committee Supports Motion
The Official Committee of Unsecured Creditors of LandAmerica
Financial Group, Inc., says it supports the entry of an order
granting the relief requested in the Rule 2004 Motion.
Because the Motion implicates the interests of LFG, the LFG
Trust, and the LFG Trustee, the LFG Committee seeks that the LFG
Trust be a full party-in-interest in all aspects of any relief
granted. The LFG Committee specifically relates that the LFG
Trustee should be included in all 2004 notices, document
productions, and examinations.
About LandAmerica Financial
LandAmerica Financial Group, Inc., provides real estate
transaction services with offices nationwide and a vast network of
active agents. LandAmerica and its affiliates operate through
approximately 700 offices and a network of more than 10,000 active
agents throughout the world, including Mexico, Canada, the
Caribbean, Latin America, Europe, and Asia.
LandAmerica Financial Group and its affiliate LandAmerica 1031
Exchange Services, Inc. filed for Chapter 11 protection
November 26, 2008 (Bankr. E.D. Va. Lead Case No. 08-35994).
Attorneys at Willkie Farr & Gallagher LLP and McGuireWoods LLP
serve as co-counsel. Zolfo Cooper is the restructuring advisor.
Epiq Bankruptcy Solutions serves as claims and notice agent.
Attorneys at Akin Gump Strauss Hauer & Feld LLP and Tavenner &
Beran, PLC, serve as counsel to the Creditors Committee of 1031
Exchange. Bingham McCutchen LLP and LeClair Ryan serve as counsel
to the Creditors Committee of LFG.
In its bankruptcy petition, LFG listed total assets of
$3,325,100,000, and total debts of $2,839,800,000 as of
September 30, 2008.
On March 6, 2009, affiliate LandAmerica Assessment Corporation,
aka National Assessment Corporation, filed its own petition for
Chapter 11 relief. Affiliate LandAmerica Title Company filed for
for Chapter 11 relief on March 27, 2009. LandAmerica Credit
Services, Inc., filed for Chapter 11 in July 2009.
Bankruptcy Creditors' Service, Inc., publishes LandAmerica
Bankruptcy News. The newsletter tracks the Chapter 11 proceeding
undertaken by LandAmerica Financial and its affiliate LandAmerica
1031 Exchange Services, Inc. (http://bankrupt.com/newsstand/or
215/945-7000)
LATITUDES INVESTMENTS: Case Summary & 14 Largest Unsec. Creditors
-----------------------------------------------------------------
Debtor: Latitudes Investments, LLC
205 N. Water St
Elizabeth City, NC 27909
Bankruptcy Case No.: 10-00247
Chapter 11 Petition Date: January 13, 2010
Court: United States Bankruptcy Court
Eastern District of North Carolina (Wilson)
Judge: Randy D. Doub
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
Email: efile@stubbsperdue.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
According to the schedules, the Company has assets of $4,067,652,
and total debts of $4,180,665.
A full-text copy of the Debtor's petition, including a list of its
14 largest unsecured creditors, is available for free at:
http://bankrupt.com/misc/nceb10-00247.pdf
The petition was signed by Barry R. Gregory, member-manager of the
Company.
LEHMAN BROTHERS: Allowed to Buy Loans for $1.39 Billion Cash
------------------------------------------------------------
Lehman Brothers Holdings Inc. and its affiliated debtors obtained
approval from Judge James Peck of the U.S. Bankruptcy Court for
the Southern District of New York of a settlement agreement with
the administrator of Lehman Brothers Bankhaus Aktiengesellschaft.
The agreement was hammered out to settle a dispute between LB
Bankhaus and some of the Lehman units including LBHI, Lehman ALI
Inc. and Lehman Commercial Paper Inc. over the ownership of
certain loans.
Prior to their bankruptcy filing, the Debtors entered into certain
commercial and real estate loan participations with LB Bankhaus.
The participations were either in the so-called "US-style" or
"UK-style."
UK-style participations are typically documented as loans made by
the participant to the lender, with no transfer to the
participant of any property interests in the underlying loans.
US-style participations, on the other hand, are typically
documented as true sales of interests in the underlying loans
that are subject to the participation. When treated as true
sales, the lender has no equitable interest in the participated
portion of such loans and the interest and principal collected by
the lender are transmitted directly to the participant.
A dispute ensued between the Lehman units and the administrator
over whether the participations documented using the US-style
form are, in fact, true sales. If they are not, then where LB
Bankhaus is a participant and one of the Lehman units is a
lender, LB Bankhaus would not hold a property interest in the
underlying loans but rather only an unsecured claim against the
concerned Lehman unit that is acting as lender.
The Debtors' attorney, Richard Krasnow, Esq., at Weil Gotshal &
Manges LLP, in New York, says the uncertainty over which party
actually owns the loans that are subject to participations
documented using the US-style form hinders the ability of either
the Lehman units or LB Bankhaus' administrator to maximize the
loans' value.
"Until this issue is resolved, neither party is willing to commit
funds or devote the time and resources necessary to maximize
value," Mr. Krasnow points out.
According to Mr. Krasnow, the agreement makes it possible for the
Lehman units to maximize the value of all the loans that underlie
the participations by providing for:
(i) the purchase by the concerned Lehman unit and concurrent
termination of LB Bankhaus' interests in the US-style
participations where that Lehman unit is a lender; and
(ii) the purchase of LB Bankhaus' interest in certain loans
where it is a lender, thus transferring legal and
beneficial ownership of certain loans, whether in the US-
style or UK-style form, to the Lehman units for an
aggregate purchase price -- net of certain cash loan
payments received by the administrator and to be
transferred or credited to the concerned Lehman unit -- a
sample calculation of which results in an aggregate net
payment amount of $1,388,900,000, subject to certain
adjustments at closing.
In the aggregate, the purchase price for the loans and
participations being acquired by the Lehman units is below both
the aggregate outstanding principal balance of the loans, which
is about $3,459,200,000, as well as their aggregate current
"market," which is approximately $2,148,600,000, thus providing
the Debtors with an opportunity for a considerable upside profit
from those assets, according to Mr. Krasnow.
"By resolving the ownership question and bringing most of the
underlying loans into the sole ownership and control of the
Lehman Parties at a discount, the agreement allows the Debtors to
maximize the value of the underlying loans for the benefit of
their estates and creditors," Mr. Krasnow says.
A full-text copy of the Settlement Agreement is available for
free at http://bankrupt.com/misc/Lehman_DealLBBankhausadmin.pdf
LESLIE'S POOLMART: S&P Gives Stable Outlook; Affirms 'B' Rating
---------------------------------------------------------------
Standard & Poor's Ratings Services revised its outlook on Phoenix-
based Leslie's Poolmart Inc. to stable from negative. At the same
time, S&P affirmed all of its ratings on the company, including
the 'B' corporate credit rating. The outlook revision reflects
the continued improvement in performance that Leslie's has
demonstrated over the past two years despite weak economic
conditions and S&P's expectation that the company will maintain a
strong competitive position and continue to grow profits modestly
going forward.
The ratings on Leslie's primarily reflect the company's highly
leveraged capital structure that results in weak cash flow
protection.
Leslie's comparable-store sales were up 1.3% for fiscal year 2009
(ended Oct. 3, 2009), mainly attributable to good weather
conditions. Comparables were particularly strong in the fourth
quarter (up 5.6%). Total sales increased 4.3% because Leslie's
benefitted from an expanded store base and a 53rd week of
operations in fiscal 2009. Without the benefit of the extra week,
S&P estimates sales would have increased 2.6% for the year.
Concurrently, the company managed to improve gross margins because
it obtained greater vendor rebates and benefited from mix shift to
higher margin categories. Operating margins (after adjusting for
operating leases) widened 100 basis points (bps) to 28% for fiscal
2009 from 27% in fiscal 2008.
Although better operating performance has enhanced credit metrics,
they are still weak; operating lease-adjusted debt to EBITDA
(including the holding company debt) was 6.5x, and EBITDA coverage
of interest was approximately 1.6x. These ratios are generally
commensurate with ratings in the mid- to low 'B' rating category.
S&P considers Leslie's to have adequate liquidity for the rating.
As of Sept. 30, 2009, Leslie's had about $97 million in cash.
Historically, the company generates the majority of its cash flow
in the third quarter and is generally cash flow negative during
the rest of the year. For example, during fiscal 2009, Leslie's
generated $35.6 million of discretionary cash flow and
$100.3 million during its third quarter ended June 27, 2009.
Along with the company's internal sources of funding, S&P expects
the company's $50 million revolving credit facility to be
sufficient to fund seasonal working capital needs and help cushion
potential operating losses during the winter months.
The rating outlook is stable. S&P believes Leslie's will continue
to open stores and grow profits modestly while maintaining
adequate credit protection measures and liquidity for the current
rating level. S&P could consider downgrading the ratings if
consolidated operating lease-adjusted EBITDA interest coverage
worsened to 1.4x or lower. This could occur in 2010 if net sales
are flat, gross margins contract 180 bps, and administrative
expenses increase 2% on an absolute basis for the year. Overall,
S&P's profit growth and credit metric enhancement expectations are
modest. Therefore, S&P does not expect performance scenarios in
which S&P would consider a upgrading the ratings in the near term.
MACE SECURITY: Regains Compliance of NASDAQ $1 Minimum Bid Rule
---------------------------------------------------------------
Mace Security International, Inc. received a letter on January 14,
2010 from the NASDAQ Listing Qualifications Department stating the
Company has regained compliance with NASDAQ Listing Rule
5450(a)(1) in that the Company's closing bid price has been at
$1.00 per share or greater for at least 10 consecutive business
days. The January 14, 2010 notification also stated that the
matter of the deficiency, as set forth in the October 9, 2009
notice, is now closed.
The October 9, 2009 non-compliance notice with NASDAQ Listing Rule
5450(a) (1) had made the Company's common stock subject to being
delisted from The NASDAQ Stock Market. In accordance with NASDAQ
Listing Rule 5810(c) (3) (A), the Company had a grace period of
180 calendar days expiring on April 7, 2010 to regain compliance.
Dennis Raefield, CEO and President of Mace, stated, "We appreciate
our shareholders' continued confidence in our share price,
intrinsic value, and strategic direction and Mace is pleased to
put this non-compliance matter behind us."
About Mace
Mace Security International, Inc. (NASDAQ Global: MACE) --
http://www.mace.com/-- is the manufacturer of personal defense
and electronic surveillance products marketed under the famous
brand name, Mace(R), and is an owner and operator of a wholesale
central monitoring station. The Company also operates a digital
media marketing and e-commerce business.
MILES PROPERTIES: REIT Slowdown Prompts Chapter 11 Filing
---------------------------------------------------------
Kelly Yamanouchi at The Atlanta Journal-Constitution reports that
Miles Properties Inc. together with 12 of its affiliates filed for
bankruptcy protection, citing dramatic slowdown of the real estate
industry due to low consumer confidence and tightened credit
markets.
Ms. Yamanouchi says creditors filed an involuntary Chapter 7
bankruptcy liquidation against the company then it had the case
converted to a Chapter 11 bankruptcy reorganization. Ron Glass at
GlassRatner Advisory & Capital Group oversees the company's case,
she notes.
The company, Ms. Yamanouche adds, owes more than $18 million to
its creditors including $10.5 million to Wachovia Financial
Services
Miles Properties Inc. owns apartment complexes.
MORTGAGE GUARANTY: Fitch Withdraws 'BB-' Insurer Strength Rating
----------------------------------------------------------------
Fitch Ratings has withdrawn the 'BB-' Insurer Financial Strength
rating of Mortgage Guaranty Investment Corp. and the 'B-' long-
term issuer rating of its parent company MGIC Investment Corp. In
addition, the ratings of MGIC IC's senior notes and convertible
junior subordinated debentures have also been withdrawn.
Fitch has withdrawn these ratings:
Mortgage Guaranty Insurance Corp.
-- IFS 'BB-'; Outlook Negative.
MGIC Investment Corp.
-- Long-term Issuer rating 'B-'; Outlook Negative.
-- $200 million 5.625% senior notes due Sept. 15, 2011 'B-';
-- $300 million 5.375% senior notes due Nov. 1, 2015 'B-'.
-- $390 million 9% convertible junior subordinated debentures
due 2063 'C'.
MESA AIR: U.S. Trustee Appoints Official Committee of Creditors
---------------------------------------------------------------
On January 14, 2010, Diana G. Adams, the United States Trustee
for Region 2, pursuant to Sections 1102(a) and (b) of the
Bankruptcy Code, appointed seven members to serve to the Official
Committee of Unsecured Creditors of Mesa Air Group, Inc., and
affiliated debtors in possession:
(1) Bombardier, Inc.
123 Garratt Boulevard
Downsview Ontario M3K 1Y5
Attention: Guy Belliveau, Director
Telephone: 416-375-3073
Fax : 416-375-4282
(2) Embraer-Empresa Brasilieire de Aeronautica S.A.
c/o Embraer Aircraft Holding Inc.
276 S.W. 34th Street
Ft. Lauderdale, Florida 33315
Attention: Sergio B. Guedes, Vice President
Telephone: 954-359-3786
Fax : 954-359-3701
(3) U.S. Bank National Association
60 Livingston Avenue
St. Paul, Minnesota 55107-2292
Attention: Timothy Sandell, Vice President
Telephone: 651-495-3959
Fax : 651-495-8100
(4) AT&T Capital Services
One AT&T Way, Room 3A218
Bedminster, New Jersey 07921
Attention: James W. Grudus, Esq.
Telephone: 908-234-3318
Fax : 908-213-0157
(5) Wilmington Trust Company
Rodney Square North
1100 North Market Street
Wilmington, Delaware 19890
Attention: David A. Vanaskey, Jr., Vice President
Telephone: 302-636-6019
Fax : 302-636-4140
(6) IHI Corporation
Toyosu 3-1-1 Koto-ku
Tokyo 135-8710
Japan
Attention: Naoya Noguchi, Manager
Telephone: 81-(3)-6204-7800
Fax : 81-(3)-6204-8800
(7) Air Line Pilots Association
668 N. 44th Street, Suite E-253
Phoenix, Arizona 85008
Attention: Brian Bruce, Pilot Representative
Telephone: 602-306-1116
Fax : 602-306-4119
Five of the Creditors' Committee members are among the Debtors'
31 largest unsecured creditors:
Entity Nature of Claim Claim Amount
------ --------------- ------------
Bombardier, Inc. Aircraft Lease $133,000,000
Guarantees; Loan;
Contract Rejection
Damages
Embraer-Empresa Aircraft Lease $42,000,000
Brasileira de Aeronautics
S.A.
US Bank National Assoc. 8% Senior Unsecured $25,907,087
Notes Due 2012
6.25% Senior
Convertible Notes
Due 2023
3.625% Senior
Convertible Notes
Due 2024
AT&T Capital Services, Aircraft Lease $15,000,000
Inc. (Successor to Rejection
TransAmerica)
IHI Corporation Trade Debt $16,033,806
About Mesa Air Group
Mesa currently operates 130 aircraft with approximately 700 daily
system departures to 127 cities, 41 states, Canada, and Mexico.
Mesa operates as Delta Connection, US Airways Express and United
Express under contractual agreements with Delta Air Lines, US
Airways and United Airlines, respectively, and independently as
Mesa Airlines and go! Mokulele. This operation links Honolulu to
the neighbor island airports of Hilo, Kahului, Kona and Lihue. The
Company, founded by Larry and Janie Risley in New Mexico in 1982,
has approximately 3,500 employees.
Mesa Air Group Inc. and its units filed their Chapter 11 petitions
Jan. 5 in New York (Bankr. S.D.N.Y. Case No. 10-10018), listing
assets of $976 million against debt totaling $869 million as of
Sept. 30, 2009.
Richard M. Pachulski, Esq., and Laura Davis Jones, Esq., at
Pachulski Stang Ziehl & Jones LLP, serve as local counsel.
Imperial Capital LLC is the investment banker. Epiq Bankruptcy
Solutions is claims and notice agent.
Bankruptcy Creditors' Service, Inc., publishes Mesa Air Bankruptcy
News. The newsletter tracks the Chapter 11 proceedings undertaken
by Mesa Air Group Inc. and its units.
(http://bankrupt.com/newsstand/or 215/945-7000)
MESA AIR: Vendor Payments Limited to $3.8MM for Now
---------------------------------------------------
Mesa Air Group Inc. previously sought and obtained interim
approval from Judge Martin Glenn of the U.S. Bankruptcy Court for
the Southern District of New York to pay all of their outstanding
obligations to critical vendors.
As of the Petition Date, the Debtors estimate that the total
accrued, unpaid, prepetition, trade claims aggregate
approximately $60,000,000.
The Debtors operate in a highly specialized, highly regulated and
highly competitive industry. The uniqueness of the airline
industry leaves airlines with few options when selecting vendors.
Certain suppliers and service providers at various venues are
simply the only option available to the Debtors. Even in those
circumstances where more than one critical vendor can be located
to provide a service, Federal Aviation Administration regulations
inhibit an airline's ability to switch expeditiously from one
supplier of goods or services to another.
Amended Interim Order
The Court entered an amended interim order dated January 13,
2010, granting and approving, on an interim basis, the Motion,
provided that until January 27, 2009, the relief requested by the
Debtors is granted only to the extent that it is necessary to
avoid immediate and irreparable harm.
Under Sections 105(a) and 363(b) of the Bankruptcy Code, the
Debtors are authorized, but not directed, in the reasonable
exercise of their business judgment, to pay some or all of the
prepetition claims of the Lienor Critical Vendors, provided that
payments to these vendors do not exceed $3,880,000 before the
final hearing of the Motion.
Pursuant to Sections 105(a), 363(b), and 503(b)(9) of the
Bankruptcy Code, the Debtors are authorized, but not directed, in
the reasonable exercise of their business judgment, to pay some
or all of the prepetition claims of the Non-Lienor Critical
Vendors up to the Non-Lienor Critical Vendor Claims Cap, who
agree to continue to supply goods or services to the Debtors on
the applicable vendors' Customary Trade Terms for a period after
the date of the agreement and on other terms and conditions as
are acceptable to, and requested by, the Debtors in their
discretion.
The Debtors will determine, in the ordinary course of business,
who is a Critical Vendor, and maintain a matrix summarizing the
name of each Critical Vendor paid on account of vendor claims,
the amount paid, and the goods and services provided by the
applicable Critical Vendor.
The Matrix will be provided to the U.S. Trustee and the
professionals engaged by the Official Committee of Unsecured
Creditors on a weekly basis with respect to Lienor Critical
Vendors. With respect to Non-Lienor Critical Vendors, the
Debtors will provide the Matrix to those parties when the
payments to these parties aggregate $250,000. The Debtors will
provide those parties with a revised Matrix each time the
payments to the Non-Lienor Critical Vendors subsequently
aggregate $250,000.
The Debtors will, to the extent they deem required in their sole
discretion, undertake all appropriate efforts to cause Non-Lienor
Critical Vendors and holders of Section 503(b)(9) claims to enter
into a vendor agreement.
The Debtors are authorized, but not required, to enter into
Vendor Agreements when they determine that it is appropriate to
do so. However, the Debtors' inability to enter into a Vendor
Agreement will not preclude them from paying a claim when, in the
exercise of their reasonable business judgment, payment is
necessary to their operations.
If the Debtors, in their discretion, determine that a Non-Lienor
Critical Vendor has not complied with the terms and provisions of
the Vendor Agreement or has failed to continue to provide
Customary Trade Terms, may terminate a Vendor Agreement, together
with the other benefits to the Non-Lienor Critical Vendor.
However, the Vendor Agreement may be reinstated if the
determination is reversed by the Court for good cause shown; the
underlying default under the agreement is fully cured by the
vendor; or the Debtors, in their discretion, reach a subsequent
agreement with the vendor.
If a Vendor Agreement is terminated or if a Non-Lienor Critical
Vendor that has received payment of a prepetition claim later
refuses to continue to supply goods or services for the
applicable period in compliance with the Vendor Agreement
or this Amended Interim Order, then (i) the Debtors may, in their
discretion, declare that the payment of that vendor's claim is a
voidable postpetition transfer pursuant to Section 549(a) of the
Bankruptcy Code that the Debtors may recover in cash or in goods
from the vendor; (ii) the creditor will immediately return the
payments in respect of its claim to the extent that the aggregate
amount of the payments exceeds the postpetition obligations then
outstanding without giving effect to alleged setoff rights,
recoupment rights, adjustments, or offsets of any type
whatsoever; and (iii) the creditor's claim will be reinstated in
an amount so as to restore the Debtors and the Non-Lienor
Critical Vendor to their original positions as if the Vendor
Agreement had never been entered into and no payment of the claim
had been made.
Upon entry of an order converting these Chapter 11 cases to cases
under Chapter 7 of the Bankruptcy Code, all Vendor Agreements
will be deemed to have terminated, together with the other
benefits to Critical Vendors contained in this Amended Interim
Order.
Pursuant to Section 503(b)(9) of the Bankruptcy Code, the Debtors
are authorized, but not directed, in the reasonable exercise of
their business judgment, to pay some or all of the Section
503(b)(9) Claims held by Critical Vendors, provided that any
payment will be conditioned upon the claimant's agreement to
Customary Trade Terms and execution of the Vendor Agreement, and
any other terms and conditions as the Debtors deem appropriate.
Payments of Section 503(b)(9) Claims will not count against the
Non-Lienor Vendor Claims Cap.
Each of the banks and financial institutions at which the Debtors
maintain their accounts relating to the payment of the claims
that the Debtors request authority to pay in the Motion are
authorized to receive, process, honor and pay all checks
presented for payment, and to honor all related fund transfer
requests made by the Debtors, to the extent that sufficient funds
are on deposit in those accounts. The Banks are authorized to
rely on the Debtors' designation of any particular check as
approved by this Interim Order.
Nothing in this Amended Interim Order will be deemed to
constitute an assumption of any executory contract or to require
the Debtors to make any of the payments or to post any of the
authorized deposits.
The Court will consider the approval of the Motion on a final
basis on January 26, 2010.
If no objection is timely served by 4:00 p.m., Eastern Time, on
January 23, the Debtors will submit a final order to the Court,
which may be entered with no further notice or opportunity to be
heard afforded any party, and the Motion will be approved nunc
pro tunc the Petition Date.
About Mesa Air Group
Mesa currently operates 130 aircraft with approximately 700 daily
system departures to 127 cities, 41 states, Canada, and Mexico.
Mesa operates as Delta Connection, US Airways Express and United
Express under contractual agreements with Delta Air Lines, US
Airways and United Airlines, respectively, and independently as
Mesa Airlines and go! Mokulele. This operation links Honolulu to
the neighbor island airports of Hilo, Kahului, Kona and Lihue. The
Company, founded by Larry and Janie Risley in New Mexico in 1982,
has approximately 3,500 employees.
Mesa Air Group Inc. and its units filed their Chapter 11 petitions
Jan. 5 in New York (Bankr. S.D.N.Y. Case No. 10-10018), listing
assets of $976 million against debt totaling $869 million as of
Sept. 30, 2009.
Richard M. Pachulski, Esq., and Laura Davis Jones, Esq., at
Pachulski Stang Ziehl & Jones LLP, serve as local counsel.
Imperial Capital LLC is the investment banker. Epiq Bankruptcy
Solutions is claims and notice agent.
Bankruptcy Creditors' Service, Inc., publishes Mesa Air Bankruptcy
News. The newsletter tracks the Chapter 11 proceedings undertaken
by Mesa Air Group Inc. and its units.
(http://bankrupt.com/newsstand/or 215/945-7000)
NAVISTAR INT'L: To Hold Live Audio Webcast on January 19
--------------------------------------------------------
Navistar International Corporation will present via live web cast
its Analyst Day at Melrose Park Engine facility on Jan. 19, 2010,
12:00 P.M. Speakers on the web cast will include Daniel C.
Ustian, Chairman, President and Chief Executive Officer, A. J.
Cederoth, Executive Vice President and Chief Financial Officer,
and other Company leaders.
About Navistar International
Navistar International Corporation (NYSE: NAV) --
http://www.Navistar.com/-- is a holding company whose
subsidiaries and affiliates subsidiaries produce International(R)
brand commercial and military trucks, MaxxForce(R) brand diesel
engines, IC Bus(TM) brand school and commercial buses, Monaco RV
brands of recreational vehicles, and Workhorse(R) brand chassis
for motor homes and step vans. It also is a private-label
designer and manufacturer of diesel engines for the pickup truck,
van and SUV markets. The company also provides truck and diesel
engine parts and service. Another affiliate offers financing
services.
* * *
Navistar continues to carry Standard & Poor's Ratings Services'
'BB-' corporate credit ratings and 'BB-' issue-level rating.
Navistar caries Moody's Investors Service's 'B1' Corporate Family
Rating, 'B1' Probability of Default; and SGL-2 Speculative Grade
Liquidity rating.
NEXTMEDIA GROUP: U.S. Trustee Unable to Form Creditors Committee
----------------------------------------------------------------
The Office of the U.S. Trustee for Region 3 notified the U.S.
Bankruptcy Court for the District of Delaware that it was unable
to appoint an official committee of unsecured creditors in the
Chapter 11 cases of NextMedia Group, Inc., et al.
The U.S. Trustee related that there were insufficient number of
unsecured creditors that have expressed interest in serving on a
committee.
NextMedia Group operates 36 AM and FM radio stations in a total of
7 rated and unrated small, mid-sized and suburban markets,
including the Greenville-New Bern-Jacksonville, North Carolina
area; the Saginaw-Bay City-Midland, Michigan area; Canton, Ohio;
Myrtle Beach, South Carolina; San Jose, California; suburban
Chicago; and suburban Dallas. In the majority of these markets,
the Debtors own and operate clusters of radio stations and target
diverse demographic groups through a broad range of programming
formats, including rock, adult contemporary, oldies,
sports/news/talk, and country. In each of the radio markets
served, the Debtors also provide radio broadcast advertising
services to local, regional and national advertising customers.
NextMedia Group, Inc., and 8 other affiliates, including NextMedia
Operating, Inc., filed for Chapter 11 on Dec. 21, 2009 (Bankr. D.
Del. Case No. 09-14463). Attorneys at Richards Layton & Finger,
and Andrews Kurth LLP serve as counsel to the Debtors. BMC Group
Inc. serves as claims and notice agent.
NextMedia Operating, Inc., is a diversified out-of-home media
company headquartered in Denver, Colorado. NextMedia, through its
subsidiaries and affiliates, owns and operates 60 stations in 15
markets throughout the United States and more than 5,600 bulletin
and poster displays. Additionally, NextMedia owns advertising
displays in more than 5,300 retail locations across the United
States.
NEXTMEDIA GROUP: Plan Provides Full Recovery for Unsecured Claims
-----------------------------------------------------------------
NextMedia Group, Inc., et al., filed with the U.S. Bankruptcy
Court for the District of Delaware a disclosure statement
explaining its plan of reorganization as of January 5, 2010.
The Debtors will begin soliciting votes on the Plan following
approval of the adequacy of the information in the Disclosure
Statement.
According to the disclosure statement, the plan contemplates a
restructuring and reorganization of the Debtors. The principal
terms of the Plan are:
i) holders of the first lien debt and holders of the general
unsecured claims will be paid in full;
ii) holders of the second lien debt will receive 95% of the
common equity in Reorganized NM Group, subject to dilution;
iii) second lien investors will receive 66.67% of the common
equity in Reorganized NM Group in exchange for a $55 million
equity investment, subject to dilution;
iv) holders of equity interest in NM investors will receive 5%
of the common equity in Reorganized NM Group, subject to
dilution;
v) NM investors will be dissolved and cease to exist as a legal
entity.
The restructuring will be financed through the equity investment,
new debt financing of $127.5 million, cash on hand and any other
additional financing that may be necessary.
A full-text copy of the disclosure statement is available for free
at http://bankrupt.com/misc/NextMedia_DS.pdf
A full-text copy of the plan of reorganization is available for
free at http://bankrupt.com/misc/NextMedia_Ch11Plan.pdf
NextMedia Group
Greenwood Village, Colorado-based NextMedia Group, Inc., provides
out-of-home media services through radio broadcasting and outdoor
advertising. The Debtors operate an aggregate of 36 AM and FM
radio stations in a total of seven rated and unrated small, mid-
size and suburban markets, including the Greenville-New Bern-
Jacksonville, North Carolina area; the Saginaw-Bay City-Midland,
Michigan area; Canton, Ohio; Myrtle Beach, South Carolina; San
Jose, California; suburban Chicago; and suburban Dallas.
NextMedia Group filed for Chapter 11 bankruptcy protection on
December 21, 2009 (Bankr. D. Delaware Case No. 09-14463). The
Debtor's affiliates, NextMedia Investors LLC, et al., also filed
Chapter 11 bankruptcy petitions. Paul N. Heath, Esq.; Michael J.
Merchant, Esq.; and Chun I. Jang, Esq., at Richards Layton &
Finger, assist the Debtors in their restructuring efforts.
NextMedia Group listed $50,000,001 to $100,000,000 in assets and
$100,000,001 to $500,000,000 in liabilities.
NORANDA ALUMINUM: S&P Puts 'CCC+' Rating on CreditWatch Positive
----------------------------------------------------------------
Standard & Poor's Ratings Services said that it placed its 'CCC+'
corporate credit rating on Franklin, Tennessee-based Noranda
Aluminum Holding Corp. on CreditWatch with positive implications.
The issue-level ratings on Noranda and its operating subsidiary,
Noranda Aluminum Acquisition Corp., are not part of this rating
action and remain 'D'.
"The CreditWatch listing reflects S&P's assessment that the
company's consolidated credit quality has improved," said Standard
& Poor's credit analyst Sherwin Brandford. "This is due to
Noranda's significant debt reduction since mid-2009 with proceeds
from the continued monetization of hedges, the repayment of
$150 million on its revolving credit facility using balance sheet
cash, significant cost improvement as a result of headcount
reductions, and the steady improvement in operating conditions."
Primary aluminum now trades above $1.00 per pound from the low of
less than $.60 per pound in late 2008. S&P expects earnings and
credit metrics to improve during the next several quarters from
current levels, although the extent of such improvement will
ultimately depend on the sustainability of aluminum price
improvements, as well as end market demand.
The issue-level ratings on both Noranda Aluminum Holding Corp. and
Noranda Aluminum Acquisition Corp. remain 'D' as the company
continues to repurchase outstanding debt at discounted prices,
which S&P has deemed distressed transactions and thus tantamount
to default, given the company's highly leveraged financial
profile.
In resolving the CreditWatch listing, S&P will discuss with the
company its near-term operating and financial strategies in light
of the improved, but still challenging, operating conditions.
Included in this will be an assessment of the company's cost and
operating profiles, as well as its continued debt repurchases and
hedging strategies.
NOVADEL PHARMA: Nets $86,770 in Seaside 88 Transaction
------------------------------------------------------
NovaDel Pharma Inc. in June 2009 entered into a Common Stock
Purchase Agreement with Seaside 88, LP. The Company agreed to
issue and sell to Seaside 500,000 shares of the Company's common
stock, $0.001 par value per share, once every two weeks for 26
closings over a 52-week period.
At the initial closing, the offering price of the Common Stock
equaled 87% of the volume weighted average trading price of the
Common Stock during the trading day immediately prior to the
initial closing date. At each subsequent closing, on each 14th
day thereafter, the offering price of the Company's Common Stock
will equal 87% of the volume weighted average trading price of the
Common Stock for the 10-day trading period immediately preceding
each subsequent closing date. If, with respect to any subsequent
closing, the volume weighted average trading price of the
Company's Common Stock for the three trading days immediately
prior to such closing is below $0.25 per share, then the
particular subsequent closing will not occur and the aggregate
number of Shares to be purchased shall be reduced by 500,000
shares of Common Stock.
Accordingly, on January 15, 2010, the Company had its tenth
closing of the Offering pursuant to which Seaside purchased
500,000 shares of the Company's Common Stock at a price per share
of $0.18, having an aggregate value of approximately $91,000, and
the Company received net proceeds of approximately $86,770, after
deducting commissions and $1,500 in non-accountable expenses,
pursuant to the terms of the Agreement.
About NovaDel Pharma
Flemington, New Jersey-based NovaDel Pharma Inc. (NYSE AMEX: NVD)
-- http://www.novadel.com/-- is a specialty pharmaceutical
company developing oral spray formulations for a broad range of
marketed drugs. The Company's proprietary technology offers, in
comparison to conventional oral dosage forms, the potential for
faster absorption of drugs into the bloodstream leading to quicker
onset of therapeutic effects and possibly reduced first pass liver
metabolism, which may result in lower doses. Oral sprays
eliminate the requirement for water or the need to swallow,
potentially improving patient convenience and adherence.
As of September 30, 2009, the Company had $2.27 million in total
assets against $9.67 million in total liabilities, resulting in
stockholders' deficit of $7.40 million.
The Company filed with the Securities and Exchange Commission its
Annual Report for the year ended December 31, 2008, which included
an audit opinion with a "going concern" explanatory paragraph.
The going-concern explanatory paragraph from NovaDel's independent
registered public accounting firm -- J.H. Cohn LLP in Roseland,
New Jersey -- expressed substantial doubt, based upon current
financial resources, as to whether NovaDel can continue to meet
its obligations beyond 2009 without access to additional working
capital.
NOVADEL PHARMA: ProQuest Converts $3.6 Million Debt for Equity
--------------------------------------------------------------
NovaDel Pharma Inc. reports that on December 31, 2009, the Company
entered into an amendment agreement with ProQuest Investment II,
L.P., ProQuest Investment Advisors Fund II, L.P. and ProQuest
Investments III, L.P.
ProQuest agreed to convert the outstanding aggregate principal
amount of all of their convertible notes and liquidated damages
notes, in each case, plus accrued interest, in an amount equal to
$3,657,517 into 23,237,083 shares of the Company's common stock,
$0.001 par value per shares.
The convertible notes were issued in two tranches on May 30, 2008
and October 17, 2008 in principal amounts of $1,475,000 and
$2,525,000, respectively. A principal payment of $1,000,000 was
made on April 29, 2009 to reduce the principal amount of the
convertible note issued on May 30, 2008. The first convertible
note had a conversion price of $0.295 per share and the second
convertible note had a conversion price of $0.235 per share. The
liquidated damages notes were issued between January 2009 and
November 2009 in an aggregate principal amount of $172,000 for
payment of liquidated damages under the stock purchase agreement
relating to the registration of shares under the convertible
notes. In addition to the convertible notes and liquidated
damages notes, ProQuest received 9,446,809 warrants with exercise
prices of 125% of the related note conversion price. As
consideration for converting all of the notes, the Company agreed
to set a conversion price of $0.1574 per share for the notes and
to reduce the exercise price of the warrants to $0.1888 per share.
In addition, the Agreement also provides that warrants to purchase
220,726 shares of the Common Stock issued previously to ProQuest
in past transactions will be retired and the exercise price of all
other warrants held by ProQuest, which consists of warrants to
purchase 1,986,536 shares of the Common Stock, will be reduced to
$0.1888 per share.
As a result of the Agreement, ProQuest's equity ownership in the
Company will consist of (i) 29,504,653 shares of the Common Stock
and (ii) warrants to purchase 11,433,345 shares of the Common
Stock at an exercise price of $0.1888 per share.
Upon conversion of all of the outstanding notes in accordance with
the Agreement, the security interest granted to ProQuest in prior
securitizations shall extinguish and be of no further force or
effect.
The shares of Common Stock and the warrants offered, and the
Common Stock issuable upon exercise of the warrants, have not been
registered under the Securities Act of 1933, as amended, or any
state securities laws, and may not be offered or sold in the
United States absent an effective registration statement or an
applicable exemption from registration requirements. The Company
believes that the issuance of the securities in this transaction
was exempt from registration under Section 4(2) of the Securities
Act.
About NovaDel Pharma
Flemington, New Jersey-based NovaDel Pharma Inc. (NYSE AMEX: NVD)
-- http://www.novadel.com/-- is a specialty pharmaceutical
company developing oral spray formulations for a broad range of
marketed drugs. The Company's proprietary technology offers, in
comparison to conventional oral dosage forms, the potential for
faster absorption of drugs into the bloodstream leading to quicker
onset of therapeutic effects and possibly reduced first pass liver
metabolism, which may result in lower doses. Oral sprays
eliminate the requirement for water or the need to swallow,
potentially improving patient convenience and adherence.
As of September 30, 2009, the Company had $2.27 million in total
assets against $9.67 million in total liabilities, resulting in
stockholders' deficit of $7.40 million.
The Company filed with the Securities and Exchange Commission its
Annual Report for the year ended December 31, 2008, which included
an audit opinion with a "going concern" explanatory paragraph.
The going-concern explanatory paragraph from NovaDel's independent
registered public accounting firm -- J.H. Cohn LLP in Roseland,
New Jersey -- expressed substantial doubt, based upon current
financial resources, as to whether NovaDel can continue to meet
its obligations beyond 2009 without access to additional working
capital.
NOVADEL PHARMA: To Move HQ to Bridgewater, Inks Lease with Regus
----------------------------------------------------------------
NovaDel Pharma Inc., as tenant, entered into a lease agreement on
December 7, 2009, with Regus Management Group LLC, as landlord,
effective as of February 1, 2010.
The lease relates to the rental of 5,000 square feet of office
space located at Bridgewater Center 1180, 1200 US Route 22 East,
Suite 2000, Bridgewater, New Jersey 08807. The Company expects to
move its headquarter to such location on or after the Effective
Date.
The term of the Lease Agreement will begin on the Effective Date
and will continue for one year with the option to renew for
additional successive one year terms. The Lease Agreement
provides for total annual base rental payments of $42,480, payable
monthly in the amount of $3,540 per month. In addition, the
Company is required to pay a service retainer with the initial
monthly payment in an amount equal to $7,080.
About NovaDel Pharma
Flemington, New Jersey-based NovaDel Pharma Inc. (NYSE AMEX: NVD)
-- http://www.novadel.com/-- is a specialty pharmaceutical
company developing oral spray formulations for a broad range of
marketed drugs. The Company's proprietary technology offers, in
comparison to conventional oral dosage forms, the potential for
faster absorption of drugs into the bloodstream leading to quicker
onset of therapeutic effects and possibly reduced first pass liver
metabolism, which may result in lower doses. Oral sprays
eliminate the requirement for water or the need to swallow,
potentially improving patient convenience and adherence.
As of September 30, 2009, the Company had $2.27 million in total
assets against $9.67 million in total liabilities, resulting in
stockholders' deficit of $7.40 million.
The Company filed with the Securities and Exchange Commission its
Annual Report for the year ended December 31, 2008, which included
an audit opinion with a "going concern" explanatory paragraph.
The going-concern explanatory paragraph from NovaDel's independent
registered public accounting firm -- J.H. Cohn LLP in Roseland,
New Jersey -- expressed substantial doubt, based upon current
financial resources, as to whether NovaDel can continue to meet
its obligations beyond 2009 without access to additional working
capital.
NOVADEL PHARMA: To Pay CEO Ratoff $350,000 Annual Base Salary
-------------------------------------------------------------
NovaDel Pharma Inc. on January 8, 2010, entered into an employment
agreement with Steven B. Ratoff under which Mr. Ratoff will serve
as the Company's President and Chief Executive Officer effective
as of January 1, 2010.
On December 31, 2009, the Company's Compensation Committee
reviewed the form of the Agreement and granted the authority to
Dr. Charles Nemeroff to finalize and execute the Agreement on
substantially similar terms as those presented to the Committee.
Mr. Ratoff has been the Company's Chairman since September 2006,
Interim President and Chief Executive Officer since July 2007, and
Interim Chief Financial Officer since April 2009. Mr. Ratoff will
continue to serve in his capacity as Interim Chief Financial
Officer.
Under the terms of the Agreement, Mr. Ratoff is entitled to
receive an annual base salary of $350,000 and a target annual
incentive bonus equal to 50% of his annual base salary, which may
be increased or decreased in the discretion of the Board of
Directors. In addition, Mr. Ratoff received a grant of stock
options on the date of the execution of the Agreement consisting
of options to purchase 2,000,000 shares of the Company's common
stock under the Company's 1998 Equity Incentive Plan and 2006
Equity Incentive Plan. The options have an exercise price equal
to $0.17 per share (which is the fair market value on the date of
grant as defined by the Plans), will vest monthly in equal
installments over a two year period and will be exercisable for a
period of five years from the date of grant.
Upon a termination of the Agreement by Mr. Ratoff for good reason
(as defined in the Agreement), Mr. Ratoff will continue to receive
his annual base salary for a period of twelve months following
such termination. In addition, Mr. Ratoff shall be entitled to
receive a monthly severance payment during the 12 month period
following his termination in an amount equal to 1/12 of the
greater of (a) the average of the annual incentive bonuses paid to
Mr. Ratoff prior to the date of termination, (b) the last annual
incentive bonus paid to Mr. Ratoff prior to termination, or (c) if
the termination occurs within the first 12 months following the
effective date of the employment agreement, the target annual
incentive bonus. All previously awarded equity grants shall
immediately vest upon such termination and Mr. Ratoff shall have a
period of twelve months following such termination to exercise any
unexercised stock options.
In the event of a termination by the Board of Directors of the
Company without cause, Mr. Ratoff will be entitled to receive an
amount equal to the greater of (i) twelve months base salary at
the time of termination or (ii) the intrinsic value of any
unvested and vested, but unexercised, stock grants on the date of
termination. In the event the value of the equity grants is less
than twelve months base salary, all unvested and vested, but
unexercised, stock grants shall immediately be forfeited. In
addition, Mr. Ratoff shall be entitled to receive the pro rata
portion of the annual incentive bonus to the extent performance
measures were met.
In the event of a termination by (i) the Board of Directors of the
Company as a result of Mr. Ratoff's disability, (ii) mutual
agreement of the parties, or (iii) Mr. Ratoff for a change of
control, Mr. Ratoff will be entitled to receive his base salary
through the date of termination, the pro rata portion of his
annual incentive bonus for that year and all other amounts to
which he was entitled for portion of the year up to his
termination. In the event of Mr. Ratoff's death, Mr. Ratoff's
legal representatives will be entitled to receive the same amounts
that Mr. Ratoff would have been entitled to receive for a
termination as a result of the foregoing events.
The Agreement also contains provisions prohibiting Mr. Ratoff,
during the term of his employment and for a period of two (2) year
following his employment from soliciting for hiring, or hiring,
any employee, consultant or independent contractor employed or
affiliated with the Company. Mr. Ratoff shall also refrain either
directly or indirectly from approaching or attempting to solicit
any business of the Company.
David Bergstrom Deal
In December 2006, the Company entered into an employment agreement
with Dr. David H. Bergstrom, Ph.D. The Bergstrom employment
agreement expired by its terms on December 4, 2009.
On December 31, 2009, the Compensation Committee of the Board of
Directors of the Company approved the recommendation to maintain
Dr. Bergstrom's services and to continue his employment on the
same terms and conditions as the employment agreement effective as
of December 4, 2009. The Company and Dr. Bergstrom entered into a
written agreement extending his employment on the same terms and
conditions for a period of one year from the effective date with
one year renewals thereafter.
About NovaDel Pharma
Flemington, New Jersey-based NovaDel Pharma Inc. (NYSE AMEX: NVD)
-- http://www.novadel.com/-- is a specialty pharmaceutical
company developing oral spray formulations for a broad range of
marketed drugs. The Company's proprietary technology offers, in
comparison to conventional oral dosage forms, the potential for
faster absorption of drugs into the bloodstream leading to quicker
onset of therapeutic effects and possibly reduced first pass liver
metabolism, which may result in lower doses. Oral sprays
eliminate the requirement for water or the need to swallow,
potentially improving patient convenience and adherence.
As of September 30, 2009, the Company had $2.27 million in total
assets against $9.67 million in total liabilities, resulting in
stockholders' deficit of $7.40 million.
The Company filed with the Securities and Exchange Commission its
Annual Report for the year ended December 31, 2008, which included
an audit opinion with a "going concern" explanatory paragraph.
The going-concern explanatory paragraph from NovaDel's independent
registered public accounting firm -- J.H. Cohn LLP in Roseland,
New Jersey -- expressed substantial doubt, based upon current
financial resources, as to whether NovaDel can continue to meet
its obligations beyond 2009 without access to additional working
capital.
PAUL REINHART: Plan Outline OK'd; Unsec. Creditors to Recover 26%
----------------------------------------------------------------
The U.S. Bankruptcy Court for the Northern District of Texas
approved the Disclosure Statement explaining the plan of
liquidation proposed by Paul Reinhart, Inc., and the Official
Committee of Unsecured Creditors in the Debtor's Chapter 11 case.
The Court will consider the confirmation of the Plan on March 1,
2010, commencing at 1:30 p.m. (prevailing Central Time), before
the Hon. Harlin D. Hale, U.S. Bankruptcy Court, 1100 Commerce
Street, 14th Floor, Dallas, Texas 75242. Objections, is any, are
due on February 23, 2010, at 5:00 p.m. (prevailing Central Time.)
According to the Disclosure Statement, the Plan provides for a
6.3%-25.8% recovery for allowed general unsecured claims. These
distributions will be made after satisfaction of allowed
administrative claims, allowed priority tax claims, allowed other
secured claims, and allowed priority non-tax claims: (a) a pro
rata share of net available general trust funds, as available for
distribution, to each holder of an allowed general unsecured
claim; (b) a pro rata share of net available lender settlement
trust funds, as available for distribution, to each holder of an
allowed general unsecured claim who has executed and delivered a
settlement release to the bank agent or prior to the settlement
release deadline; and (c) a pro rata share of net available
other settlement trust funds, as available for distribution, to
each holder of an allowed general unsecured claim who has not
timely made the settlement opt-out election.
The Plan also provides for the establishment of the PRI Creditors
Trust on the effective date of the Plan. Distributions under the
Plan will be made from the Creditor Trust, and the Debtor, the
Trustee, members of the Creditor Trust Oversight Committee, the
Bank Agent, and all Creditors will be deemed to have adopted and
approved the Creditor Trust Documentation establishing the
Creditor Trust as of the effective date of the Plan.
On the Effective Date of the Plan, all Equity Interests will be
deemed cancelled, extinguished and otherwise rendered null, void
and of no further force or effect, whatsoever, except for the sole
purpose of effectuating the wind-up and termination of the Post-
Confirmation Debtor. Additionally, on the effective date, all
remaining officers and directors of the Debtor will be deemed
terminated. The Trustee will be deemed appointed as the President
and sole member of the board of directors of the Post-Confirmation
Debtor.
A full-text copy of the Disclosure Statement is available for free
at http://bankrupt.com/misc/PaulReinhart_DSbyCreditors.pdf
A full-text copy of the Plan of Liquidation is available for free
at http://bankrupt.com/misc/PaulReinhart_PlanbyCreditors.pdf
Based in Richardson, Texas, Paul Reinhart Inc. is a cotton
merchant serving organic and traditional growers and textile
mills. The company, which filed for Chapter 11 bankruptcy on
October 15, 2008 (Bankr. N.D. Tex. Case No. 08-35283), blamed
futures losses and its inability to attain adequate financing for
the bankruptcy filing. Deborah M. Perry, Esq., E. Lee Morris,
Esq., and Lee Jacob Pannier, Esq., at Munsch Hardt Kopf & Harr,
P.C.; and Joseph M. Coleman, Esq., at Kane, Russell, Coleman &
Logan, represent the Debtor as counsel. The U.S. Trustee for
Region 6 appointed creditors to serve on an Official Committee of
Unsecured Creditors in this case. Michael R. Rochelle, Esq., and
Sean Joseph McCaffity, Esq., at Rochelle McCullough L.L.P.,
represent the Committee as counsel.
As reported in the Troubled Company Reporter on December 5, 2008,
the Debtors' schedules disclosed total assets of $143,943,710
and total debts of $247,421,595. As of March 31, 2009, the
Debtor's unaudited balance sheet showed $47,209,570 in total
assets and $169,258,640 in total liabilities.
PMP II: List of 20 Largest Unsecured Creditors
----------------------------------------------
PMP II, LLC, has filed with the U.S. Bankruptcy Court for the
Northern District of Texas a list of its 20 largest unsecured
creditors.
A full-text copy of the Debtor's list of creditors is available
for free at http://bankrupt.com/misc/txnb10-30252.pdf
Chicago, Illinois-based PMP II, LLC, dba Paradise Memorial Park,
filed for Chapter 11 bankruptcy protection on January 7, 2010
(Bankr. N.D. Texas Case No. 10-30252). Gerrit M. Pronske, Esq.,
at Pronske & Patel, P.C., assists the Company in its restructuring
effort. The Company listed $10,000,001 to $50,000,000 in assets
and $10,000,001 to $50,000,000 in liabilities.
PMP II: Sec. 341 Creditors Meeting Set for Feb. 10
--------------------------------------------------
The U.S. Trustee for Region 6 will convene a meeting of PMP II,
LLC's creditors on February 10, 2010, at 11:00 a.m. at Office of
the U.S. Trustee, 1100 Commerce Street, Room 976, Dallas, TX
75242.
This is the first meeting of creditors required under Section
341(a) of the U.S. Bankruptcy Code in all bankruptcy cases.
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 office of the
Debtor under oath about the company's financial affairs and
operations that would be of interest to the general body of
creditors.
Chicago, Illinois-based PMP II, LLC, dba Paradise Memorial Park,
filed for Chapter 11 bankruptcy protection on January 7, 2010
(Bankr. N.D. Texas Case No. 10-30252). Gerrit M. Pronske, Esq.,
at Pronske & Patel, P.C., assists the Company in its restructuring
effort. The Company listed $10,000,001 to $50,000,000 in assets
and $10,000,001 to $50,000,000 in liabilities.
PNG VENTURES: Court to Consider Plan Confirmation on March 5
------------------------------------------------------------
The U.S. Bankruptcy Court for the District of Delaware approved
the Disclosure Statement explaining PNG Ventures, Inc., et al.'s
Plan of Reorganization.
The Court will consider the confirmation of the Debtors' Plan on
March 5, 2010, at 9:00 a.m. (prevailing Eastern Time). The
hearing will be held before the Hon. Christopher S. Sontchi at 824
N. Market Street, 5th Floor, Wilmington, Delaware. Objections, if
any, are due on February 22, 2010, at 4:00 p.m.
According to the Disclosure Statement, the Plan provides that as
of the effective date: (a) all assets and liabilities of the
Debtors will be deemed merged and treated as though they were
merged into the Reorganized Debtor; (b) no distributions will be
made under the Plan on account of any inter-company claims and all
the inter-company claims will be eliminated; (c) all claims
against any Debtor for which one or more of the Debtors is also
liable will be merged into a single claim against the consolidated
Reorganized Debtor; and (d) each and every claim filed or to be
filed in any of the cases will be deemed filed against the
consolidated Reorganized Debtor, and will be deemed one claim
against the Consolidated Reorganized Debtor.
The Debtors aver that the common business purpose, common secured
creditors, some common unsecured creditors and lack of prejudice
to any creditor will permit the deemed substantive consolidation
for purposes of the Plan of Reorganization. The liens held by
Fourth Third, LLC securing its $37,450,000 claim encumber all of
the assets of all of the Debtors which have a going concern value,
well as liquidation value, far less than the amount of the secured
claim. Therefore, on a non-consolidated basis, unsecured
creditors of the individual Debtors would receive nothing upon
liquidation of the assets of the respective individual Debtors and
on a consolidated basis, unsecured creditors of all of the Debtors
would also receive nothing upon liquidation of all of the Debtors.
Holders of Allowed General Unsecured Claims will receive the these
treatment: (1) cash payment of its Pro Rata share of the Class 5
Fund, (2) 1,500,000 shares of New PNG Common Stock, which are to
be distributed to the holders of Allowed General Unsecured Claims
on the effective date, on a Pro Rata basis. It is expected that
the aggregate number of shares of New PNG Common Stock to be
distributed to the holders of Allowed General Unsecured Claims
will approximate 7.5% of the outstanding New PNG Common Stock on
the effective date. The Debtors estimate that they will require
$1.2 million dollars to fund the holders of Class 5 Allowed
Claims. The Unsecured Creditors Fund will be funded by (i)
$700,000 of the $750,000 paid to the Creditor Trustee on the
effective date; (ii) a net payment of an additional $450,000 upon
receipt by the Debtors of excise tax return credits; and (iii) the
net proceeds, after payment of legal costs and fees, of the monies
recovered from Preference Actions brought by the Creditor Trustee.
In addition to Cash the Debtors will have on hand from normal
business operations, it is estimated that the Debtors will require
$8.075 million of cash to fund the Plan. The Debtors propose to
enter a post-petition date plan funding agreement with all
necessary parties including Castlerigg PNG Investments, LLC and
Medley.
A full-text copy of the Disclosure Statement is available for free
at http://bankrupt.com/misc/PNGVentures_AmendedDS.pdf
A full-text copy of the Plan of Reorganization is available for
free at http://bankrupt.com/misc/PNGVentures_AmendedPlan.pdf
PNG Ventures, Inc., produces, distributes, and sells liquefied
natural gas to customers within the transportation, industrial,
and municipal markets in the western United States and parts of
Mexico. The Company sells substantially all of its LNG to fleet
customers, who typically own and operate their fueling stations.
The Company also sells a small volume of LNG to customers for non-
vehicle use. The Company owns one public LNG fueling station from
which it sells LNG to numerous parties. The Company produces LNG
at its liquefaction plant in Arizona, but also purchases, from
time to time, LNG supplies from third parties, typically on spot
contracts. The Company sells LNG principally through supply
contracts that are normally on an index-plus basis, although it
also occasionally enters into fixed-price contracts.
The Company is headquartered in Dallas, Texas. The LNG business
conducts its operations principally in Arizona and California.
Through the Company's LNG business, the Company offers turnkey
fuel solutions to its customers, including clean LNG fuel (99%
methane gas) and delivery, equipment storage, fuel dispensing
equipment and fuel loading facilities.
PNG Ventures and its affiliates filed for Chapter 11 on
September 10, 2009 (Bankr. D. Del. Case No. 09-13162). Attorneys
at Fox Rothschild LLP represent the Debtors in their restructuring
effort. Logan & Co. serves as claims and notice agent.
PPA HOLDINGS: Creditors Committee Proposes Plan of Reorganization
-----------------------------------------------------------------
The Official Committee of Unsecured Creditors in the Chapter 11
cases of PPA Holdings LLC, et al., filed with the U.S. Bankruptcy
Court for the Central District of California a Chapter 11 Plan for
the Debtors.
The Creditors' Plan provides that in the event that all real
properties owned by PPA Holdings are listed on a Notice of
Abandonment, each holder of an Allowed Class 10(d) claim will
receive, together with the holders of the Allowed Class 10(e)
Claims, its pro rata share of any cash held by PPA Holdings as of
the effective date, other than cash subject to a security interest
securing an Allowed Secured Claim against PPA Holdings, after
payment in full of all Allowed Class 10(b) Claims and all Allowed
Class 10(c) Claims.
Under the Plan, Allowed Unsecured Claims against Pacific Property
Assets will receive, together with the holders of the Allowed
Class 6(e) Claims, its pro rata share of any cash held by Pacific
Property Assets as of the effective date, other than cash, subject
to a security interest securing an Allowed Secured Claim against
Pacific Property Assets, after payment in full of all Allowed
Class 6(b) Claims and all Allowed Class 6(c) Claims.
Allowed Class 3(b) Claim will receive its pro rata share of any
cash held by Bell Cove as of the Effective Date, other than cash
subject to a security interest securing an Allowed Secured Claim
against Bell Cove, until the claim has been paid in full, without
interest.
A full-text copy of the Creditor's Committee proposed Plan for the
Debtors is available for free at:
http://bankrupt.com/misc/PPAHoldings_Ch11PlanDec10.pdf
Irvine, California-based PPA Holdings LLC is in the real property
investment business.
The Company and its affiliates filed for Chapter 11 on June 26,
2009 (Bankr. C.D. Calif. Lead Case No. 09-16353). Nanette D.
Sanders, Esq., and Todd C. Ringstad, Esq., at Ringstand & Sanders
LLP, represent the Debtors in their restructuring efforts.
Richard W. Esterkin, Esq., at Morgan Lewis & Bockius LLP,
represents the official committee of unsecured creditors as
counsel. The Debtors listed $10 million to $50 million in assets
and $50 million to $100 million in debts.
READER'S DIGEST: Sells Digital Learning Co. For $32M
-----------------------------------------------------
Law360 reports that the Reader's Digest Association Inc. has won
court approval of a $31.8 million sale of subsidiary
CompassLearning Inc., a seller of digital classroom aids and other
education technology that did not fit with the bankrupt magazine
publisher's regrowth strategy.
RDA is a global multi-brand media and marketing company that
educates, entertains and connects audiences around the world. The
company builds multi-platform communities based on branded
content. With offices in 44 countries, it markets books,
magazines, and music, video and educational products reaching a
customer base of 130 million in 78 countries. It publishes 94
magazines, including 50 editions of Reader's Digest, the world's
largest-circulation magazine, operates 65 branded Web sites
generating 22 million unique visitors per month, and sells
40 million books, music and video products across the world each
year. Its global headquarters are in Pleasantville, N.Y.
Reader's Digest said that as of June 30, 2009, it had total assets
of $2.2 billion against total debts of $3.4 billion.
Reader's Digest, together with its 47 affiliates, filed for
Chapter 11 on August 24 (Bankr. S.D.N.Y. Case No. 09-23529).
Kirkland & Ellis LLP has been engaged as general restructuring
counsel. Mallet-Prevost, Colt & Mosle LLP has been tapped as
conflicts counsel. Ernst & Young LLP is auditor. Miller Buckfire
& Co, LLC, is financial advisor. AlixPartners, LLC, is
restructuring consultant. Kurtzman Carson Consultants is notice
and claims agent.
The Official Committee of Unsecured Creditors is tapping BDO
Seidman, LLP, as financial advisor, Trenwith Securities, LLP, as
investment banker and Otterbourg, Steindler, Houston & Rosen,
P.C., as counsel.
Bankruptcy Creditors' Service, Inc., publishes Reader's Digest
Bankruptcy News. The newsletter tracks the Chapter 11 proceeding
undertaken by Reader's Digest and its affiliates
(http://bankrupt.com/newsstand/or 215/945-7000)
RELIANCE AVIATION: Files for Chapter 11 in Ft. Lauderdale
---------------------------------------------------------
Reliance Aviation - Fort Lauderdale has filed for chapter 11
bankruptcy protection on January 15, 2010, before the U.S.
Bankruptcy Court for the Southern District of Florida (Bankr. Case
No. 10-10930). The petition listed $0 assets and $5,599,119 in
total liabilities, owed to more than 100 unsecured creditors.
A full-text copy of the petition is available at no charge at
http://bankrupt.com/misc/flsb10-10930.pdf
Paul Brinkmann at South Florida Business Journal reports that
Reliance Aviation - Fort Lauderdale changed hands in 2008.
Reliance Aviation - Fort Lauderdale is run by CEO Keith St. Clair.
Business Journal relates Mr. St. Clair bought the Company and
combined it with several other companies for a reported $50
million in 2008.
Business Journal reports that Mr. St. Clair, founder and former
chairman of TraveLeaders and part owner of Seaplanes of Key West,
announced the formation of StrategicAir in a 2008 press release.
At the time, he said StrategicAir owned and managed 12 aircraft
and provided maintenance and charter services.
Business Journal continues that StrategicAir said in the release
that its initial assets were a result of the acquisition of
Reliance Aviation of Fort Lauderdale, Signature Private Jets,
certain assets of Advanced Flight Concepts and the purchase of six
aircraft from Starwood Aviation, for a total of more than $50
million.
Business Journal notes a manager at the Kendall-based company with
a similar name, Reliance Aviation, said that company is not part
of the bankruptcy filing.
According to Business Journal, attempts to reach the Fort
Lauderdale company's offices and bankruptcy attorney, Susan Lasky,
Esq., at Wilton Manors, were not immediately successful.
RELIANT ENERGY: Kelson Won't Get $15M Breakup Fe, 3rd Circ.
-----------------------------------------------------------
Law360 reports that Kelson Channelview LLC, the stalking horse
bidder in a $500 million power plant sale in Reliant Energy
Channelview LP's bankruptcy proceedings, will not collect a
$15 million breakup fee Reliant originally agreed to pay, despite
the fact that another company made the winning bid, a federal
appeals court has ruled.
Based in Houston, Reliant Energy Channelview L.P. owns a power
plant located near Houston, and is an indirect wholly owned
subsidiary of Reliant Energy Inc. -- http://www.reliant.com/--
The company and its three affiliates, Reliant Energy Channelview
(Texas) LLC, Reliant Energy Channelview (Delaware) LLC, and
Reliant Energy Services Channelview LLC filed for chapter 11
protection on Aug. 20, 2007 (Bankr. D. Del. Lead Case No.
07-11160). Jason M. Madron, Esq., Lee E. Kaufman, Esq., Mark D.
Collins, Esq., Paul Noble Heath, Esq., Richards, Robert J. Stearn
Jr., Esq., at Layton & Finger P.A., and Timothy P. Cairns,
Pachulski Stang Ziehl & Jones represent the Debtors. The U.S.
Trustee for Region 3 appointed an Official Committee of Unsecured
Creditors in these cases. David B. Stratton, Esq., and Evelyn J.
Meltzer, Esq., at Pepper Hamiltion LLP, represent the Committee.
When the Debtors filed for protection from their creditors,
they listed total assets of $362,000,000 and total debts of
$342,000,000.
ROBERT BRENNAN: Superior Court Approved Distribution Plan
---------------------------------------------------------
Evelyn Lee at NJBIZ.com says a state superior court judge approve
a distribution plan to provide $5.15 million to 27,000 investor
defrauded by Robert Brennan during the 1990s. The state Bureau
of Securities tracked down and seized the assets of Mr. Brennan
attempted to hide including a pension fund he set up for himself.
Ms. Lee notes investors that defrauded by Mr. Brennan can submit a
claim to Donald F. Conway.
Robert Brennan filed for Chapter 11 protection in 1995.
SMURFIT-STONE: Gets May 21 Plan Exclusivity Extension
-----------------------------------------------------
Smurfit-Stone Container Corp. overcame opposition from creditors
and was given an extension of the exclusive right to propose a
reorganization. Smurfit-Stone and its units had asked the Court
that their current exclusive plan filing period be extended
through and including May 21, 2010, and the current plan
solicitation period through and including July 21, 2010.
James F. Conlan, Esq., at Sidley Austin LLP, in Chicago,
Illinois, notes that the Debtors have made tremendous strides in
stabilizing their business operations and are in the final, and
critical stages of their Chapter 11 cases. He adds that the
Debtors have already filed a Joint Chapter 11 Plan of
Reorganization and Disclosure Statement, which is scheduled to be
heard on January 29, 2010. The Debtors currently anticipate a
confirmation hearing occurring sometime on April 2010.
Wilmington Trust Company, in its capacity as indenture trustee for
certain various notes aggregating $2.1 billion and the Official
Committee of Unsecured Creditors, supported the requested
extension, noting that the Debtors have engaged in good faith
negotiations with respect to the Plan.
Aurelius Capital Management LP and Columbus Hill Capital
Management LP, managers of certain funds that are beneficial
holders of certain notes, have asked the Court to deny the
Debtors' request for a further extension of the Exclusive Periods
with respect to Stone Container Finance Company of Canada II.
Scott D. Cousins, Esq., at Greenberg Traurig LLP, in Wilmington,
Delaware, contends that the Debtors cannot establish that "cause"
exists to extend the Exclusive Periods because:
* Finance II's case is not large or complex. Finance II is a
separate legal entity with no on-going operations and no
employees. Finance II's assets and liabilities are simple
and should be addressed through a simple liquidation.
* Finance II has not made and cannot make good faith progress
toward a reorganization. Finance II has nothing to
reorganize, no reasonable likelihood of rehabilitation and
no valid reorganizational purpose. Even the Consolidated
U.S. Debtors concede in the Amended Plan that Finance II
will be dissolved upon consummation of the Amended Plan.
* Finance II has not filed a viable plan of reorganization.
The Amended Plan does not benefit Finance II and cannot be
confirmed with respect to Finance II. The only possible
justification for Finance II to remain in Chapter 11 is an
impermissible desire to benefit its affiliated Debtors to
the detriment of Finance II and its creditors.
* Finance II has had more than sufficient time to develop a
confirmable plan but has, instead, chosen to consent to
being a proponent of the Amended Plan. Finance II has not
engaged in negotiations of any kind with the Objecting
Parties presumably because Finance II has effectively been
unrepresented by its common counsel with the Consolidated
U.S. Debtors.
* The Consolidated U.S. Debtors are seeking an extension of
the Exclusive Periods with respect to Finance II solely in
an attempt to force the Objecting Parties to accept a plan
that is not satisfactory or appropriate as to Finance II.
About Smurfit-Stone
Smurfit-Stone Container Corp. -- http://www.smurfit-stone.com/--
is one of the leading integrated manufacturers of paperboard and
paper-based packaging in North America and one of the world's
largest paper recyclers. The Company operates 162 manufacturing
facilities that are primarily located in the United States and
Canada. The Company also owns roughly one million acres of
timberland in Canada and operates wood harvesting facilities in
Canada and the United States. The Company employs roughly 21,250
employees, 17,400 of which are based in the United States. For
the quarterly period ended September 30, 2008, the Company
reported roughly $7.450 billion in total assets and $5.582 billion
in total liabilities on a consolidated basis.
Smurfit-Stone and its U.S. and Canadian subsidiaries filed for
Chapter 11 protection on January 26, 2009 (Bankr. D. Del. Lead
Case No. 09-10235). Certain of the company's affiliates,
including Smurfit-Stone Container Canada Inc., a wholly owned
subsidiary of SSCE, and certain of its affiliates, filed to
reorganize under the Companies' Creditors Arrangement Act in the
Ontario Superior Court of Justice in Canada.
Smurfit-Stone joined pulp- and paper-related bankruptcies as
rising Internet use hurts magazines and newspapers. Corporacion
Durango SAB, Mexico's largest papermaker, sought U.S. bankruptcy
in October. Quebecor World Inc., a magazine printer and Pope &
Talbot Inc., a pulp-mill operator, also sought cross-border
bankruptcies for their operations in the U.S. and Canada.
James F. Conlan, Esq., Matthew A. Clemente, Esq., Dennis M.
Twomey, Esq., and Bojan Guzina, Esq., at Sidley Austin LLP, in
Chicago, Illinois; and Robert S. Brady, Esq., and Edmon L. Morton,
Esq., at Young Conaway Stargatt & Taylor in Wilmington, Delaware,
serve as the Debtors' bankruptcy counsel. PricewaterhouseCooper
LLC, serves as the Debtors' financial and investment consultants.
Lazard Freres & Co. LLC acts as the Debtors' investment bankers.
Epiq Bankruptcy Solutions LLC acts as the Debtors' notice and
claims agent.
Bankruptcy Creditors' Service, Inc., publishes Smurfit-Stone
Bankruptcy News. The newsletter tracks the Chapter 11 proceeding
and ancillary foreign proceedings undertaken by Smurfit-Stone
Container Corp. and its various affiliates.
(http://bankrupt.com/newsstand/or 215/945-7000)
TLC VISION: Aims to Sell Canadian Business for $9.4 Million
-----------------------------------------------------------
Bill Rochelle at Bloomberg News reports that TLC Vision Corp. will
ask the Bankruptcy Court at a Jan. 22 hearing to authorize the
sale of its business in Canada for $9.4 million without holding an
auction.
TLCVision -- http://www.tlcvision.com/-- is North America's
premier eye care services company, providing eye doctors with the
tools and technologies needed to deliver high-quality patient
care. Through its centers' management, technology access service
models, extensive optometric relationships, direct to consumer
advertising and managed care contracting strength, TLCVision
maintains leading positions in Refractive, Cataract and Eye Care
markets.
TLC Vision (USA) Corporation, and two of its corporate affiliates
filed petitions for Chapter 11 on Dec. 21, 2009 (Bankr. D. Del.
Case No. 09-14473). The petition says assets and debts are
$100 million to $500 million.
The Company's lead U.S. restructuring counsel is the law firm of
Proskauer Rose LLP and Canadian restructuring counsel is the law
firm of Torys LLP. The Company's financial advisor is Conway Del
Genio Gries & Co., LLC. Epiq Bankruptcy Solutions is claims and
notice agent.
TOUSA INC: Creditors May Have Green Light to Sue Parent
-------------------------------------------------------
Bill Rochelle at Bloomberg News reports that the Official
Committee of Unsecured Creditors for homebuilder Tousa Inc. is
saying that impediments have been removed and the Bankruptcy court
should allow a lawsuit go to forward by the Committee against
directors and officers of Tousa's subsidiaries and against
Technical Olympic SA.
According to the report, the bankruptcy judge in Fort Lauderdale
stopped the lawsuit against directors and officers in December
pending resolution of a separate dispute over which of two
insurance companies is potentially liable on a $100 million
directors' and officers' liability policy. In a court filing Jan.
5, the Committee informed the Court that one of the insurance
companies agreed to pay the defendants' costs.
The suit against Technical Olympic is based on the same events
that enabled the committee to win judgment in October against
secured lenders. The Committee won judgment against secured
lenders on claims that loans made six months before the Chapter 11
filing were fraudulent transfers. The bankruptcy judge required
the lenders to post a total of $700 million in appeal bonds to
stay enforcement of his October ruling that the transactions were
voidable in bankruptcy.
About Tousa Inc.
Headquartered in Hollywood, Florida, TOUSA Inc. (Pink Sheets:
TOUS) -- http://www.tousa.com/-- fka Technical Olympic U.S.A.
Inc., dba Technical U.S.A., Inc., Engle Homes, Newmark Homes L.P.,
TOUSA Homes Inc. and Newmark Homes Corp. is a leading homebuilder
in the United States, operating in various metropolitan markets in
10 states located in four major geographic regions: Florida, the
Mid-Atlantic, Texas, and the West.
The Debtor and its debtor-affiliates filed for separate Chapter 11
protection on January 29, 2008 (Bankr. S.D. Fla. Case No. 08-
10928). The Debtors have selected M. Natasha Labovitz, Esq.,
Brian S. Lennon, Esq., Richard M. Cieri, Esq., and Paul M. Basta,
Esq., at Kirkland & Ellis LLP; and Paul Steven Singerman, Esq., at
Berger Singerman, to represent them in their restructuring
efforts. Lazard Freres & Co. LLC is the Debtors' investment
banker. Ernst & Young LLP is the Debtors' independent auditor and
tax services provider. Kurtzman Carson Consultants LLC acts as
the Debtors' Notice, Claims & Balloting Agent.
TOUSA's direct subsidiary, Beacon Hill at Mountain's Edge LLC dba
Eagle Homes, filed for Chapter 11 Protection on July 30, 2008
(Bankr. S.D. Fla. Case No. 08-20746). It listed assets between
$1 million and $10 million, and debts between $1 million and
$10 million.
The Official Committee of Unsecured Creditors hired Patricia A.
Redmond, Esq., and the law firm Stearns Weaver Weissler Alhadeff &
Sitterson, P.A., as its local counsel.
TOUSA Inc.'s balance sheet at June 30, 2008, showed total assets
of $1,734,422,756 and total liabilities of $2,300,053,979.
Bankruptcy Creditors' Service, Inc., publishes TOUSA Bankruptcy
News. The newsletter tracks the Chapter 11 proceeding undertaken
by TOUSA Inc. and its affiliates.
(http://bankrupt.com/newsstand/or 215/945-7000)
TOUSA INC: Lenders Oppose Committee Plea to File $60MM Suit
-----------------------------------------------------------
The Official Committee of Unsecured Creditors in TOUSA Inc.'s
cases seeks authority from the United States Bankruptcy Court for
the Southern District of Florida to pursue claims on behalf of
TOUSA Inc. and its debtor affiliates' estates against:
(a) Falcone/TEP Holdings, LLC, TEP Holdings, Inc., formerly
known as Transeastern Properties, Inc., Arthur J. and
Edward W. Falcone and 69 other entities who were parties
to a "TOUSA/Falcone Settlement;" and
(b) Kendall Land Development, LLC and its founder Jose
Boschetti and Martin Caparros, Jr; Boschetti Capital
Partners, LLC; Prestige Builders Capital Investments, LLC;
Sylvia Boschetti; Patricia Caparros, who were parties to a
"TOUSA/Kendall Settlement."
A list of the parties to the TOUSA/Falcone Settlement is
available for free at:
http://bankrupt.com/misc/Tousa_AddlFalconeEntities.pdf
The Committee specifically intends to file a complaint against
the Falcone Entities and Kendall Entities to avoid and recover
more than $60 million, which certain of the Falcone Entities and
Kendall Entities receive in the midst of crashing credit and
housing market crisis in July 2007, as part of a global
settlement of litigation that arose out of a disastrous business
venture between certain of the Debtors and the Falcone Entities
and Kendall Entities.
Lenders React
In separate filings, Citicorp North America, Inc., and Wells Fargo
Bank, N.A., object to the Official Committee of Unsecured
Creditors' Motion for Standing to Prosecute Claims.
On behalf of Citicorp, in its capacity as administrative agent of
the First Lien Term Loan, Amy Denton Harris, Esq., at Stichter,
Riedel, Blain & Prosser, P.A., in Tampa, Florida, contends that a
plaintiff cannot recover twice for the same injury. She notes
that the parties from whom the Committee now seeks to recover
$60 million in allegedly fraudulently transferred funds are in a
position analogous to the Senior Transeastern Lenders in that the
payments to them were financed by the First and Second Lien Term
Lenders and were made as part of the transactions on July 31,
2007. Thus, if the Committee prevails on its request, any
recovery of the cash transfers should thus be subject to the same
scheme governing the recovery from the Senior Transeastern
Lenders and the distributions from a Disgorgement Account
pursuant to the Amended Final Judgment entered in the action
commenced by the Committee against Citicorp, et al, she points
out.
In this light, Citicorp objects to the monetary relief the
Committee seeks from Falcone/TEP Holdings, LLC and related
entities, and Kendall Land Development, LLC and related entities
in the Committee's proposed complaint.
Counsel to Wells Fargo, as successor administrative agent to the
Second Lien Term Lenders, Jeffrey I. Snyder, Esq., at Bilzin
Sumberg Baena Price & Axelrod, in Miami, Florida, says that the
Court has already ordered that the Conveying TOUSA Subsidiaries
may be "made whole" by the remedies in the Amended Final
Judgment, which avoids liens and claims of the First and Second
Lien Lenders against the Conveying Subsidiaries. Thus, in the
event the appeals relating to the Citicorp Committee Action are
unsuccessful, Wells Fargo reserves its right to claim any
proceeds of the action against the Falcones and Kendall Entities,
which exceed the amount necessary to "make whole" the Conveying
Subsidiaries pursuant to the Amended Final Judgment.
About Tousa Inc.
Headquartered in Hollywood, Florida, TOUSA Inc. (Pink Sheets:
TOUS) -- http://www.tousa.com/-- fka Technical Olympic U.S.A.
Inc., dba Technical U.S.A., Inc., Engle Homes, Newmark Homes L.P.,
TOUSA Homes Inc. and Newmark Homes Corp. is a leading homebuilder
in the United States, operating in various metropolitan markets in
10 states located in four major geographic regions: Florida, the
Mid-Atlantic, Texas, and the West.
The Debtor and its debtor-affiliates filed for separate Chapter 11
protection on January 29, 2008 (Bankr. S.D. Fla. Case No. 08-
10928). The Debtors have selected M. Natasha Labovitz, Esq.,
Brian S. Lennon, Esq., Richard M. Cieri, Esq., and Paul M. Basta,
Esq., at Kirkland & Ellis LLP; and Paul Steven Singerman, Esq., at
Berger Singerman, to represent them in their restructuring
efforts. Lazard Freres & Co. LLC is the Debtors' investment
banker. Ernst & Young LLP is the Debtors' independent auditor and
tax services provider. Kurtzman Carson Consultants LLC acts as
the Debtors' Notice, Claims & Balloting Agent.
TOUSA's direct subsidiary, Beacon Hill at Mountain's Edge LLC dba
Eagle Homes, filed for Chapter 11 Protection on July 30, 2008
(Bankr. S.D. Fla. Case No. 08-20746). It listed assets between
$1 million and $10 million, and debts between $1 million and
$10 million.
The Official Committee of Unsecured Creditors hired Patricia A.
Redmond, Esq., and the law firm Stearns Weaver Weissler Alhadeff &
Sitterson, P.A., as its local counsel.
TOUSA Inc.'s balance sheet at June 30, 2008, showed total assets
of $1,734,422,756 and total liabilities of $2,300,053,979.
Bankruptcy Creditors' Service, Inc., publishes TOUSA Bankruptcy
News. The newsletter tracks the Chapter 11 proceeding undertaken
by TOUSA Inc. and its affiliates.
(http://bankrupt.com/newsstand/or 215/945-7000)
TOUSA INC: Paul Berkowitz Returns to Greenberg Traurig
------------------------------------------------------
James P.S. Leshaw, Esq., a shareholder at Greenberg Traurig,
P.A., disclosed that Paul Berkowitz, executive vice president of
TOUSA, Inc., was a shareholder of Greenberg Traurig for the
period from September 30, 1993, until December 31, 2006. Mr.
Leshaw noted that Mr. Berkowitz had an outstanding offer to
return to Greenberg Traurig upon termination of his employment
with TOUSA.
Mr. Berkowitz and TOUSA subsequently agreed to sever Mr.
Berkowitz' employment with TOUSA effective December 31, 2009.
Mr. Berkowitz thus re-joined Greenberg Traurig as an attorney and
shareholder effective January 1, 2010. According to Mr.
Berkowitz, he expects to be employed by TOUSA to provide legal
services as an attorney at Greenberg Traurig and be paid on an
hourly basis.
* * *
Judge Olson has issued an order confirming the continued
employment of Greenberg Traurig as special counsel for the
Debtors.
A hearing regarding Greenberg Traurig's continued employment was
held on January 11, 2010, at the request of the U.S. Trustee.
Judge Olson acknowledged that Greenberg Traurig does not
represent or hold any interest adverse to the Debtors or their
estates as required by Section 327(e) of the Bankruptcy Code and
Rule 2014 of the Federal Rules of Bankruptcy Procedure.
Moreover, Greenberg Traurig remains eligible to serve as special
counsel to the Debtors pursuant to Section 327(e), without the
need to expand the scope of the firm's retention, Judge Olson
held.
About Tousa Inc.
Headquartered in Hollywood, Florida, TOUSA Inc. (Pink Sheets:
TOUS) -- http://www.tousa.com/-- fka Technical Olympic U.S.A.
Inc., dba Technical U.S.A., Inc., Engle Homes, Newmark Homes L.P.,
TOUSA Homes Inc. and Newmark Homes Corp. is a leading homebuilder
in the United States, operating in various metropolitan markets in
10 states located in four major geographic regions: Florida, the
Mid-Atlantic, Texas, and the West.
The Debtor and its debtor-affiliates filed for separate Chapter 11
protection on January 29, 2008 (Bankr. S.D. Fla. Case No. 08-
10928). The Debtors have selected M. Natasha Labovitz, Esq.,
Brian S. Lennon, Esq., Richard M. Cieri, Esq., and Paul M. Basta,
Esq., at Kirkland & Ellis LLP; and Paul Steven Singerman, Esq., at
Berger Singerman, to represent them in their restructuring
efforts. Lazard Freres & Co. LLC is the Debtors' investment
banker. Ernst & Young LLP is the Debtors' independent auditor and
tax services provider. Kurtzman Carson Consultants LLC acts as
the Debtors' Notice, Claims & Balloting Agent.
TOUSA's direct subsidiary, Beacon Hill at Mountain's Edge LLC dba
Eagle Homes, filed for Chapter 11 Protection on July 30, 2008
(Bankr. S.D. Fla. Case No. 08-20746). It listed assets between
$1 million and $10 million, and debts between $1 million and
$10 million.
The Official Committee of Unsecured Creditors hired Patricia A.
Redmond, Esq., and the law firm Stearns Weaver Weissler Alhadeff &
Sitterson, P.A., as its local counsel.
TOUSA Inc.'s balance sheet at June 30, 2008, showed total assets
of $1,734,422,756 and total liabilities of $2,300,053,979.
Bankruptcy Creditors' Service, Inc., publishes TOUSA Bankruptcy
News. The newsletter tracks the Chapter 11 proceeding undertaken
by TOUSA Inc. and its affiliates.
(http://bankrupt.com/newsstand/or 215/945-7000)
TOUSA INC: Wins Final Approval for Cash Collateral Use
------------------------------------------------------
Judge John Olson of the United States Bankruptcy Court for the
Southern District of Florida has issued a final order granting
TOUSA Inc. and its debtor affiliates access to the cash
collateral of their Prepetition Lenders through January 31,
2010.
As previously reported, the Court continued hearing on the Cash
Collateral Motion from December 3, 2009, to December 4 2009. As
noted on the record at the December 4 hearing, the Court extended
the Fifth Interim Cash Collateral Order through December 16,
2009. The Court entered the Original Fifth Interim Cash
Collateral Order on October 28, 2009.
The Court held the final hearing on the Cash Collateral Motion
last December 16, 2009.
The Court's recent ruling authorizes the Debtors to use the Cash
Collateral based on a prepared cash flow budget for the period
from October 2009 to April 2010. The Debtors' estimated total
operating cash flows under the seven-month period ending April
2010 are:
Month ended Est. Total Operating Cash Flow
-------------- ------------------------------
October 2009 ($15,309,000)
November 2009 ($13,843,000)
December 2009 ($10,311,000)
January 2010 ($10,711,000)
February 2010 ($7,648,000)
March 2010 ($9,877,000)
April 2010 ($20,165,000)
A full-text copy of the Seven-Month Budget is available for free
at http://bankrupt.com/misc/TOUSA_CashCollBudgettilApr2010.pdf
Judge Olson also ruled that the Debtors' use of the Cash
Collateral is conditioned on the Debtors' compliance with certain
financial covenants. The Financial Covenants will be measured as
(i) actual monthly Operating Cash Flow that must not be less than
the projected monthly Operating Cash Flow set forth in the Budget
minus $10 million; and (ii) cumulative Operating Cash Flow for
the applicable period must be no less than the amounts set forth
for the applicable period:
Period Minimum Operating Cash Flow
------------------- ---------------------------
11/01/09 - 11/30/09 ($7,093,000)
12/01/09 - 12/31/09 ($3,561,000)
01/01/10 - 01/31/10 ($3,961,000)
02/01/10 - 02/28/10 ($898,000)
03/01/10 - 03/31/10 ($3,137,000)
04/01/10 - 04/30/10 ($4,125,000)
Except for the Carve-Out, no administrative claims, including
fees and expenses of professionals, will be assessed against or
attributed to any of the Prepetition Secured Parties with respect
to their interests in the Prepetition Collateral for the Cash
Collateral Period or any subsequent period in which the Debtors
are permitted to use Cash Collateral pursuant to the Final Cash
Collateral Order and without prior written consent of the
Prepetition Secured Parties.
Notwithstanding the objections of the Prepetition Secured
Parties, the Cash Collateral may be used by the Official
Committee of Unsecured Creditors to object to or contest the
Prepetition Secured Loans or the Prepetition Liens, or to assert
or prosecute any actions, claims or causes of action against any
of the Prepetition Secured Parties without the consent of the
applicable Prepetition Secured Parties, Judge Olson ruled.
To address the previous objection of Red River/El Dorado 6500,
L.L.C., and Rancho Sierra Vista, L.L.C., to the Third Cash
Collateral Motion, Judge Olson further ruled that liens granted
under the First, Second, Third and Fourth Cash Collateral Orders,
including Adequate Protection Liens, do not prime the valid
prepetition liens and interests, if any, of Red River and Rancho
Sierra. Any language of the Cash Collateral Orders will have no
effect on Red River's and Rancho Sierra's rights to defend any
challenge to the validity, extent, priority, perfection or
enforceability of their deeds of trust and covenants that run
with their land.
Judge Olson also held that the Debtors' or the Creditors
Committee's professional fees must not exceed these estimated
amounts for the period from December 2009 to April 2010:
Period Est. Total Professional Fees
------ ----------------------------
December 2009 $2,057,277
January 2010 $2,394,000
February 2010 $2,677,777
March 2010 $2,762,777
April 2010 $2,573,777
A full-text copy of the Professional Fees Budget until April 2010
is available for free at:
http://bankrupt.com/misc/TOUSA_ProfFeesBudgettilApr2010.pdf
A full-text copy of TOUSA's Fifth Final Cash Collateral
Order dated January 8, 2010, is available for free at:
http://bankrupt.com/misc/TOUSA_5thFinalCashCollORD.pdf
About Tousa Inc.
Headquartered in Hollywood, Florida, TOUSA Inc. (Pink Sheets:
TOUS) -- http://www.tousa.com/-- fka Technical Olympic U.S.A.
Inc., dba Technical U.S.A., Inc., Engle Homes, Newmark Homes L.P.,
TOUSA Homes Inc. and Newmark Homes Corp. is a leading homebuilder
in the United States, operating in various metropolitan markets in
10 states located in four major geographic regions: Florida, the
Mid-Atlantic, Texas, and the West.
The Debtor and its debtor-affiliates filed for separate Chapter 11
protection on January 29, 2008 (Bankr. S.D. Fla. Case No. 08-
10928). The Debtors have selected M. Natasha Labovitz, Esq.,
Brian S. Lennon, Esq., Richard M. Cieri, Esq., and Paul M. Basta,
Esq., at Kirkland & Ellis LLP; and Paul Steven Singerman, Esq., at
Berger Singerman, to represent them in their restructuring
efforts. Lazard Freres & Co. LLC is the Debtors' investment
banker. Ernst & Young LLP is the Debtors' independent auditor and
tax services provider. Kurtzman Carson Consultants LLC acts as
the Debtors' Notice, Claims & Balloting Agent.
TOUSA's direct subsidiary, Beacon Hill at Mountain's Edge LLC dba
Eagle Homes, filed for Chapter 11 Protection on July 30, 2008
(Bankr. S.D. Fla. Case No. 08-20746). It listed assets between
$1 million and $10 million, and debts between $1 million and
$10 million.
The Official Committee of Unsecured Creditors hired Patricia A.
Redmond, Esq., and the law firm Stearns Weaver Weissler Alhadeff &
Sitterson, P.A., as its local counsel.
TOUSA Inc.'s balance sheet at June 30, 2008, showed total assets
of $1,734,422,756 and total liabilities of $2,300,053,979.
Bankruptcy Creditors' Service, Inc., publishes TOUSA Bankruptcy
News. The newsletter tracks the Chapter 11 proceeding undertaken
by TOUSA Inc. and its affiliates.
(http://bankrupt.com/newsstand/or 215/945-7000)
TOUSA INC: Wants to Stay Committee's D&O Action
-----------------------------------------------
To recall, the Official Committee of Unsecured Creditors in TOUSA
Inc.'s cases already won judgment against secured lenders on
claims that loans made six months before the Chapter 11 filing
were fraudulent transfers. The bankruptcy judge required the
lenders to post a total of $700 million in appeal bonds to stay
enforcement of his October ruling that the transactions were
voidable in bankruptcy.
The Committee is now seeking authority from the Bankruptcy Court
to sue another group of defendants to recover an additional
$60 million from claims that a bail out and refinancing in mid-
2007 of a joint venture in Transeastern Properties Inc. resulted
in fraudulent transfers. The Creditors Committee, if permitted,
will sue for $50 million from Arthur and Edward Falcone, who were
owners of the company that was Tousa's joint venturer in buying
Transeastern in 2005. The Committee says that money given the
Falcones and their companies in mid-2007 were fraudulent
transfers.
The Debtors, however, ask the Court to stay the action commenced
by the Official Committee of Unsecured Creditors against the
Debtors' directors and officers, pending resolution of:
(i) the appeals to the Final Judgment entered in the action
initiated by the Committee against Citicorp North America,
Inc., and
(ii) a dispute with the Debtors' directors and officers
liability insurance carriers on whether those carriers are
legally obligated to advance the legal costs of the
directors who are defendants in the D&O Action.
Paul Steven Singerman, Esq., at Berger Singerman, P.A., in Miami,
Florida, asserts that the outcome of the appeal in the Citicorp-
Committee Action is likely to affect the development and
disposition of the D&O Action. He maintains that a stay of the
D&O Action (i) will permit the Debtors time to attempt to resolve
the insurance coverage issues before the D&O Action begins, (ii)
will inform the parties on whether the policies may be available
for a potential recovery, and (iii) will allow the Director
Defendants to know whether they will have legal representation
paid for by the insurers. More importantly, all parties will
benefit by knowing whether the "$100 million in directors and
officers' insurance" that the Committee identified as a source of
recovery is actually available for potential judgment, Mr.
Singerman points out.
In response, the Committee complains that the requested stay has
no apparent end in sight, would be inappropriate and contrary to
settled law. "The claims in the D&O Action are valuable estate
assets, regardless of the pending Appeals and the Debtors'
disputes with the insurance companies," Patricia A. Redmond,
Esq., at Stearns Weaver Miller Weissler Alhadeff & Sitterson,
P.A., in Miami, Florida, insists. She contends that the Debtors
and the Director Defendants all had ample opportunity to attempt
to resolve the insurance coverage issues, instead of waiting
until November 5, 2009, when the Debtors filed their adversary
proceeding against the D&O Insurers. Against this backdrop, the
Committee asks the Court to deny the Debtors' request to stay the
D&O Action.
Replying to the Committee, the Debtors' counsel, Mr. Singerman
insists that the more sensible and efficient plan would be to
have clarity on the possible recovery that will depend on the
outcome of the D&O Insurers lawsuit and the Appeals before
spending millions of dollars of a diminishing estate. "At best,
the Committee's objection urges the Court to ignore its
responsibility to promote the most efficient administration of
the Debtors' estates," he contends. He asserts that the Debtors
are expeditiously litigating their claims against the insurers
and the Committee can encourage a speedy appeal process by not
seeking any extensions for itself in that process. Against this
backdrop, the Debtors ask the Court to grant their Motion to
Stay.
In addition, the Debtors asserted supplemental authority as noted
In re Markel International Insurance Company v. O'Quinn, 566 F.
Supp. 2d 1374 (S.D. Ga. 2008) in support of their Motion to Stay.
* * *
Judge Olson entered an order granting in part and denying in part
the Debtors' Motion to Stay on December 11, 2009. Judge Olson
stayed the D&O Action and continued through the Court's status
conference on January 29, 2010. The stay will remain in effect
until further order by the Court. Moreover, the deadline for
responsive pleadings in the D&O Action is extended to a date to
be set at the January 29, 2010 status conference.
Committee Seeks Stay Modification
Subsequently, the Committee asks the Court to:
(a) lift the stay of the D&O Action pursuant to the Dec. 11,
2009 order; and
(b) set the deadline for the filing of an answer or other
Responsive pleading in the D&O Action as February 1, 2010,
or at a later date.
Counsel to the Committee, Ms. Redmond notes that at a hearing
held on December 29, 2009, the Debtors disclosed that they had
reached an agreement with their D&O Insurers, whereby the D&O
Insurers have agreed to advance defense costs to the Director
Defendants in the D&O Action. In this light, the grounds upon
which the Court granted the Stay no longer exist, she points out.
At the Committee's request, the Court shortened the notice period
with respect to the Committee's Motion to Lift Stay, and
scheduled hearing with respect to the Motion to Lift Stay for
January 11, 2010.
In response, the Debtors' counsel, Mr. Singerman tells the Court
that the Debtors have continued to negotiate with the D&O
Insurers and are working diligently to finalize that agreement.
He notes that the Debtors will continue to keep the Committee
aware of all further developments on this score. The Debtors
further believe that the Committee should coordinate directly
with defense counsel to the Director Defendants to reach an
agreement on the response date once the funding agreement is
final. Given the circumstances, mutual coordination on a
response date between the Committee and counsel for defendants
simply makes the most sense going forward, Mr. Singerman says.
Prior to filing of the Motion to Lift Stay, at the Committee's
request, the Court directed the defendants in the D&O Action to
file an answer or responsive pleading by January 11, 2010.
Moreover, in a Court-approved stipulation, the Committee,
Technical Olympic, S.A., Konstantinos Stengos, Andreas Stengos,
George Stengos, and Marianne Stengou agreed for the extension of
the defendants' deadline to respond to the Committee Complaint to
January 11, 2010.
Defendants Want to Withdraw Reference
Defendants Technical Olympic, Konstantinos Stengos, Andreas
Stengos, George Stengos, and Marianna Stengou, Antonio Mon and
Tommy McAden ask the U.S. Bankruptcy Court for the Southern
District of Florida to withdraw the reference in the D&O Action
so that the D&O Action can be adjudicated in the first instance
and in toto by the U.S. District Court for the Southern District
of Florida.
Technical Olympic's counsel, Andrew D. Zaron, Esq., at Hunton &
Williams LLP, in Miami, Florida, asserts that the D&O Action is a
non-core matter alleging solely state-law based causes of action;
breach of fiduciary duty; and aiding and abetting that breach of
fiduciary duty. These causes of action are governed by state law
and do not involve any substantive rights under Chapter 11, he
points out. Indeed, the underlying transaction giving rise to
the allegations -- the settlement agreements among TOUSA, Inc.,
the Transeastern Lenders and other parties on July 31, 2007 --
occurred prepetition, Mr. Zaron points out. "Thus, having the
D&O Action go forward first in the Bankruptcy Court will add an
unnecessary layer of proceedings, resulting in nothing more than
proposed finding and conclusions that will need to be reviewed de
novo by the District Court," Mr. Zaron maintains.
Moreover, Technical Olympic designates portions of the Committee
Complaint, which the Director Defendants believe will be
necessary to the District Court's consideration of the
accompanying Motion to Withdraw.
About Tousa Inc.
Headquartered in Hollywood, Florida, TOUSA Inc. (Pink Sheets:
TOUS) -- http://www.tousa.com/-- fka Technical Olympic U.S.A.
Inc., dba Technical U.S.A., Inc., Engle Homes, Newmark Homes L.P.,
TOUSA Homes Inc. and Newmark Homes Corp. is a leading homebuilder
in the United States, operating in various metropolitan markets in
10 states located in four major geographic regions: Florida, the
Mid-Atlantic, Texas, and the West.
The Debtor and its debtor-affiliates filed for separate Chapter 11
protection on January 29, 2008 (Bankr. S.D. Fla. Case No. 08-
10928). The Debtors have selected M. Natasha Labovitz, Esq.,
Brian S. Lennon, Esq., Richard M. Cieri, Esq., and Paul M. Basta,
Esq., at Kirkland & Ellis LLP; and Paul Steven Singerman, Esq., at
Berger Singerman, to represent them in their restructuring
efforts. Lazard Freres & Co. LLC is the Debtors' investment
banker. Ernst & Young LLP is the Debtors' independent auditor and
tax services provider. Kurtzman Carson Consultants LLC acts as
the Debtors' Notice, Claims & Balloting Agent.
TOUSA's direct subsidiary, Beacon Hill at Mountain's Edge LLC dba
Eagle Homes, filed for Chapter 11 Protection on July 30, 2008
(Bankr. S.D. Fla. Case No. 08-20746). It listed assets between
$1 million and $10 million, and debts between $1 million and
$10 million.
The Official Committee of Unsecured Creditors hired Patricia A.
Redmond, Esq., and the law firm Stearns Weaver Weissler Alhadeff &
Sitterson, P.A., as its local counsel.
TOUSA Inc.'s balance sheet at June 30, 2008, showed total assets
of $1,734,422,756 and total liabilities of $2,300,053,979.
Bankruptcy Creditors' Service, Inc., publishes TOUSA Bankruptcy
News. The newsletter tracks the Chapter 11 proceeding undertaken
by TOUSA Inc. and its affiliates.
(http://bankrupt.com/newsstand/or 215/945-7000)
TUMBLEWEED INC: Court Approves Plan to Restructure Debt
-------------------------------------------------------
Kevin Eigelbach, staff writer at Business First of Louisville,
reports that a federal court approve a plan to restructure
Tumbleweed Inc. and its subsidiary Custom Food Solutions LLC. The
company said no one objected to the plan, and it expects the case
to close by the end of this month.
Headquartered in Louisville, Kentucky, Tumbleweed, Inc. --
http://www.tumbleweedrestaurant.com/-- together with Custom Food
Solutions LLC operate a chain of restaurants.
Tubleweed and Custom Food filed separate petitions for Chapter
11 relief on March 27, 2009 (Bankr. W.D. Ky. Case No. 09-31525 and
09-31526). Ruby D. Fenton-Iler, Esq., at Borowitz & Goldsmith,
PLC, David M. Cantor, Esq., at Seiller Waterman LLC, and Gary L.
Jones, Esq., at Jones Law Offices, represent Tumbleweed, Inc., as
counsel. The Debtor listed between $10 million and $50 million
each in assets and debts.
UCBH HOLDINGS: Fitch Downgrades Issuer Default Rating to 'D'
------------------------------------------------------------
Fitch Ratings has downgraded the long-term Issuer Default Rating
to 'D' from 'C' and the Individual rating to 'F' from 'E' of UCBH
Holdings, Inc., as the company is in bankruptcy. Fitch also has
withdrawn all outstanding ratings of UCBH Holdings, Inc., and its
subsidiaries.
Fitch has taken these rating actions:
UCBH Holdings, Inc.
-- Long-term IDR downgraded to 'D' from 'C', withdrawn;
-- Short-term IDR downgraded to 'D' from 'C'; withdrawn;
-- Preferred Stock 'C/RR6'; withdrawn;
-- Individual downgraded to 'F' from 'E'; withdrawn;
-- Support '5'; withdrawn;
-- Support Floor 'NF'; withdrawn.
United Commercial Bank
-- Individual 'F'; withdrawn.
UCBH Trust Co.
UCBH Capital Trust I
UCBH Capital Trust II
UCBH Capital Trust III
UCBH Capital Trust IV
UCBH Capital Trust V
UCBH Holdings Statutory Trust I
UCBH Holdings Statutory Trust II
-- Trust Preferred Securities 'C/RR6'; withdrawn.
UNIGENE LABORATORIES: Delays Effective Date of Shelf Prospectus
---------------------------------------------------------------
Unigene Laboratories, Inc., has delayed the effective date of its
registration statement related to the issuance of $30 million in
Common Stock; Warrants to purchase common stock, debt securities
or units; Rights to purchase common stock, debt securities or
units; Debt Securities; and Units.
In a Form S-3 registration statement filed in December, the
Company said it intends to use the net proceeds from the sale of
the securities for general corporate purposes and other working
capital expenditures. Unigene will sell the securities to or
through underwriters or dealers, directly to a limited number of
purchasers or a single purchaser, through agents or through a
combination of any of these methods of sale, as designated from
time to time. If any agents or underwriters are involved in the
sale of any of these securities, the applicable prospectus
supplement will provide the names of the agents or underwriters
and any applicable fees, commissions or discounts.
Going Concern Doubt
At September 30, 2009, the Company's consolidated balance sheets
showed $25,838,000 in total assets and $56,333,000 in total
liabilities, resulting in a $30,495,000 shareholders' deficit.
"We need additional cash from increases in Fortical sales or
royalties, milestones from existing agreements or upfront payments
from new agreements or from financings in order to meet our near-
term obligations." This raises substantial doubt about the
Company's ability to continue as a going concern.
The Company's independent registered public accounting firm has
added an explanatory paragraph to their audit opinion issued in
connection with the financial statements for each of the years
ended December 31, 2008, 2007, and 2006, concerning the
substantial doubt about Unigene Laboratories' ability to continue
as a going concern.
About Unigene
Unigene Laboratories, Inc. OTCBB: UGNE) -- http://www.unigene.com/
-- is a biopharmaceutical company focusing on the oral and nasal
delivery of large-market peptide drugs. Due to the size of the
worldwide osteoporosis market, Unigene is targeting its initial
efforts on developing calcitonin and PTH-based therapies.
Fortical(R), Unigene's nasal calcitonin product for the treatment
of postmenopausal osteoporosis, received FDA approval and was
launched in 2005. Unigene has licensed the U.S. rights for
Fortical to Upsher-Smith Laboratories, worldwide rights for its
oral PTH technology to GlaxoSmithKline, worldwide rights for its
calcitonin manufacturing technology to Novartis and worldwide
rights (except for China) for its oral calcitonin program to Tarsa
Therapeutics, Inc. Unigene's patented oral delivery technology
has successfully delivered, in preclinical and/or clinical trials,
various peptides including calcitonin, PTH and insulin. Unigene's
patented manufacturing technology is designed to cost-effectively
produce peptides in quantities sufficient to support their
worldwide commercialization as oral or nasal therapeutics.
U.S. INTER-MEX: Voluntary Chapter 11 Case Summary
-------------------------------------------------
Debtor: U.S. Inter-Mex Transportation, LLC
301 E. Nolana, P.O. Box 4525
McAllen, TX 78502
Bankruptcy Case No.: 10-70033
Chapter 11 Petition Date: January 15, 2010
Court: United States Bankruptcy Court
Southern District of Texas (McAllen)
Judge: Richard S. Schmidt
Debtor's Counsel: Eduardo V. Rodriguez, Esq.
Malaise Law Firm
1265 N Expressway 83
Brownsville, TX 78521
Tel: (956) 547-9638
Fax: (956) 547-9630
Email: evrcourt@malaiselawfirm.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
The Debtor did not file a list of its 20 largest unsecured
creditors when it filed its petition.
The petition was signed by Richard V. Martinez, president of the
Company.
VIEW SYSTEMS: Files Amendment No. 2 to Fiscal 2008 Annual Report
----------------------------------------------------------------
View Systems, Inc., filed on January 14, 2010, on Form 10-K/A
Amendment No. 2 to its annual report for the fiscal year ended
December 31, 2008, to disclose the results of the re-audit of its
financial statements for said fiscal year by Larry O'Donnell, CPA,
P.C., the Company's new independent accounting firm.
After the March 31, 2009 filing of the Company's Form 10-K for the
year ended December 31, 2008, the Company's independent accounting
firm, Davis, Sita & Company, P.A., resigned.
Subsequent to the filing of Amendment No. 1 to its Form 10-K for
fiscal 2008, because questions were raised about the independence
of Davis, Sita & Company, P.A., at or around the time it issued
its opinion on the Company's December 31, 2008 financial
statements, both the Company and the SEC concluded that it was
appropriate to obtain a re-audit of the Company's financial
statements for the year ended December 31, 2008.
There have not been any changes to the Company's financial
statements for the year ended December 31, 2008, as a result of
the new audit conducted by Larry O'Donnell, CPA, P.C.
Fiscal 2008 Results
The Company reported a net loss of $173,539 on net revenues of
$1,148,314 for the year ended December 31, 2008, compared to a net
loss of $1,075,086 on net revenues of $1,256,534 for the previous
fiscal year.
At December 31, 2008, the Company had total assets of $1,305,579,
total current liabilities of $1,591,101, resulting in a
stockholders' deficit of $285,522.
A full-text copy of Amendment No. 2 to the Company's annual report
for the fiscal year ended December 31, 2008, is available at no
charge at http://researcharchives.com/t/s?4d88
Going Concern Doubt
The Company has incurred and continues to incur, losses from
operations. For the years ended December 31, 2008, and 2007, the
Company incurred net losses of $173,539 and $1,075,086,
respectively. In addition, certain notes payable have come due
and the note holders are demanding payment. "These conditions are
such that the continuation of the Company as a going concern is in
doubt."
About View Systems
Based in Baltimore, Maryland, View Systems Inc. (OTC BB: VYSM) --
http://www.viewsystems.com/-- develops, produces, and markets
computer software and hardware systems for security and
surveillance applications.
VILLAGE VOICE: Decries Bankruptcy Speculation
---------------------------------------------
Law360 reports that Village Voice Media Holdings LLC has denounced
a media report that the Village Voice newspaper could be forced
into bankruptcy after one of VVM's predecessor companies lost
nearly $16 million in a lawsuit in California over predatory
pricing.
Not your typical town crier, this publisher gives voice to issues
underplayed by the mainstream press. Village Voice Media,
formerly New Times Newspapers, chimes in with an alternative to
traditional print journalism through about 15 alternative
newspapers. Its publications include the "Dallas Observer," the
"Miami New Times," and SF Weekly; as well as its flagship paper
the Village Voice (New York City). It also owns the Ruxton Group,
which sells advertising for more than 1,500 weeklies and college
newspapers. New Times was founded in 1970 Arizona State University
students opposed to the Vietnam war and became Village Voice Media
when it purchased Village Voice publisher Village Voice Media in
2006.
VISION CARE: Case Summary & 20 Largest Unsecured Creditors
----------------------------------------------------------
Debtor: Vision Care Holdings, LLC
3801 S. Congress Avenue
Lake Worth, FL 33461
Bankruptcy Case No.: 10-10730
Chapter 11 Petition Date: January 14, 2010
Court: United States Bankruptcy Court
Southern District of Florida (West Palm Beach)
Judge: Erik P. Kimball
Debtor's Counsel: Bart A. Houston, Esq.
200 E Broward Blvd #1110
Ft Lauderdale, FL 33301
Tel: (954) 453-8000
Fax: (954) 453-8010
Email: bhouston@gjb-law.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $50,000,001 to $100,000,000
A full-text copy of the Debtor's petition, including a list of its
20 largest unsecured creditors, is available for free at:
http://bankrupt.com/misc/flsb10-10730.pdf
The petition was signed by Ben L. Cook, manager of the Company.
VITESSE SEMICONDUCTOR: Adopts FY 2010 Executive Bonus Plan
----------------------------------------------------------
The Board of Directors of Vitesse Semiconductor Corporation has
adopted a Fiscal Year 2010 Executive Bonus Plan to provide members
of the executive staff of the Corporation with the opportunity to
earn incentive bonuses based on:
* the Corporation's attainment of specific financial
performance objectives for the fiscal year; and
* the executive's achievement of designated personal goals.
Awards under the Plan may be made only to "Eligible Persons,"
which is defined to be any "officer," as that term is defined
in Rule 16a-1(f) under the Securities Exchange Act of 1934,
and any vice-president who is a member of the Corporation's
executive staff. Any bonus for employees who become
"Eligible Persons" after the beginning of fiscal year 2010
will be prorated.
A participant's bonus under the Plan will be based on the
Corporation achieving a certain level of Adjusted EBITDA (as
defined below) during the fiscal year and upon the participant
achieving certain individual personal goals established by the
Chief Executive Officer of the Corporation. A participant's bonus
will be an amount equal to (a) times (b) times (c), where (a)
equals the participant's Base Salary, (b) equals a specified
percentage of the participant's salary (ranging from 15% to 60%)
that would be payable if the participant achieved 100% of his or
her personal goals and the Corporation achieved an amount of
Adjusted EBITDA specified in the Plan and (c) equals the
percentage of personal goals achieved by the participant. Whether
a participant has attained a personal goal in whole or in part
shall be determined by the Chief Executive Officer of the
Corporation in his or her sole discretion.
Bonus payments, if earned, will be paid by the end of the
first quarter of Fiscal Year 2011, or as soon as practicable
after determination and certification of the actual financial
performance levels for the year and grant of approval by the
Compensation Committee of the Board of Directors of the
Corporation in a duly held meeting, but, in no event, later than
March 15, 2011. A participant's right to receive a bonus will
become vested if the participant is continuously employed by the
Corporation without performance deficiencies until September 30,
2010.
Based in Camarillo, California, Vitesse Semiconductor Corporation
(Pink Sheets: VTSS.PK) -- http://www.vitesse.com/-- designs,
develops and markets a diverse portfolio of high-performance,
cost-competitive semiconductor solutions for Carrier and
Enterprise networks worldwide. Engineering excellence and
dedicated customer service distinguish Vitesse as an industry
leader in Gigabit Ethernet, Ethernet-over-SONET, Optical
Transport, and other applications.
Vitesse had total assets of $107,636,000 against total debts of
$160,101,000 as of June 30, 2009.
Vitesse entered into debt restructuring agreements in October 2009
with its major creditors, which allow the Company to satisfy its
creditors by converting most of its debt into new common stock,
preferred stock and new convertible debentures. Vitesse is
seeking stockholder approval to increase the number of authorized
shares of the Company's common stock from 500,000,000 to
5,000,000,000 in conjunction with the debt restructuring
agreements. The Company has warned if stockholders do not approve
the proposal to authorize the Company to issue more shares by
February 15, 2010, it will face a 1.0% per month interest charge
on the New Debentures (at a cost of about $500,000 per month)
beginning on February 16, 2010 and continuing until the increase
in the authorized shares is approved. In addition, the holders of
the New Debentures will have the right to demand repayment of the
principal amount of the debt, plus potentially certain make-whole
interest payments representing interest that would have been
earned if the bonds had not been converted early. The Company
could potentially be forced to file for protection from creditors
under Chapter 11 of the U.S. Bankruptcy Code.
VO LLC: Case Summary & 6 Largest Unsecured Creditors
----------------------------------------------------
Debtor: VO, LLC
6806 Eastern Avenue
Baltimore, MD 21224
Bankruptcy Case No.: 10-10912
Chapter 11 Petition Date: January 15, 2010
Court: United States Bankruptcy Court
District of Maryland (Baltimore)
Judge: James F. Schneider
Debtor's Counsel: Mark F. Scurti, Esq.
Hodes, Pessin & Katz, P.A.
901 Dulaney Valley Road, Suite 400
Towson, MD 21204
Tel: (410) 938-8800
Fax: (410) 832-5607
Email: mscurti@hpklegal.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
According to the schedules, the Company has assets of $1,300,000,
and total debts of $2,487,364.
A list of the Company's 6 largest unsecured creditors is available
for free at http://bankrupt.com/misc/mdb10-10912.pdf
The petition was signed by John Vontran, authorized member of the
company.
WASHINGTON MUTUAL: District Court Suit Held Up
----------------------------------------------
Bill Rochelle at Bloomberg News reports that Washington Mutual
Inc. succeeded in convincing a U.S. district judge in Washington
to put its lawsuit on hold against the Federal Deposit Insurance
Corp. and JPMorgan Chase & Co. while a suit on similar facts goes
ahead in bankruptcy court in Delaware. U.S. District Judge
Rosemary M. Collyer said in her opinion that she was entitled to
"abstain" in the suit in her court because the case in bankruptcy
court is proceeding "at a faster pace." She also said that the
bankruptcy case involved "similar, but not identical" facts.
Lawsuit Among Parties
Washington Mutual filed a suit in March 2009 against the FDIC
before the U.S. District Court in Washington after its claim in
the bank receivership was denied. The Debtor seeks to recover
$6.5 billion in capital contributions, $4 billion in preferred
securities and $3 billion in tax refunds. The lawsuit contends
the FDIC sold the bank for substantially less than the assets were
worth. The holding company believes the bank's assets were worth
more than the bank's debt.
In April 2009, JPMorgan, which acquired Washington Mutual Bank,
filed in the Bankruptcy Court a complaint against Washington
Mutual and WMI Investment Corp., and Federal Deposit Insurance
Corporation, seeking (i) to ensure that it is not divested of the
assets and interests purchased in good faith from the FDIC, as
receiver for WMB; and (ii) for indemnification and recovery
against the Debtors for certain liabilities that may be asserted
against JPMorgan, as successor by merger to WMB, pursuant to a
Purchase and Assumption Agreement dated September 25, 2008, with
the FDIC.
In mid-April 2009, Washington Mutual countered with its own
lawsuit against JPM in the Bankruptcy Court, seeking recovery of
$4 billion it was holding in deposit accounts at its bank
unit when the thrift unit was taken over in September by the
FDIC and immediately transferred to JPMorgan Chase & Co.
About Washington Mutual
Based in Seattle, Washington, Washington Mutual Inc. --
http://www.wamu.com/-- is a holding company for Washington Mutual
Bank as well as numerous non-bank subsidiaries. The Company
operates in four segments: the Retail Banking Group, which
operates a retail bank network of 2,257 stores in California,
Florida, Texas, New York, Washington, Illinois, Oregon, New
Jersey, Georgia, Arizona, Colorado, Nevada, Utah, Idaho and
Connecticut; the Card Services Group, which operates a nationwide
credit card lending business; the Commercial Group, which conducts
a multi-family and commercial real estate lending business in
selected markets, and the Home Loans Group, which engages in
nationwide single-family residential real estate lending,
servicing and capital markets activities.
Washington Mutual Bank was taken over September 25 by U.S.
government regulators. The next day, WaMu and its affiliate, WMI
Investment Corp., filed separate petitions for Chapter 11 relief
(Bankr. D. Del. 08-12229 and 08-12228, respectively). Wamu owns
100% of the equity in WMI Investment. Weil Gotshal & Manges
represents the Debtors as counsel. When WaMu filed for protection
from its creditors, it listed assets of $32,896,605,516 and debts
of $8,167,022,695. WMI Investment listed assets of $500,000,000
to $1,000,000,000 with zero debts.
Bankruptcy Creditors' Service Inc. publishes Washington Mutual
Bankruptcy News. The newsletter tracks the Chapter 11 proceedings
of Washington Mutual Inc. (http://bankrupt.com/newsstand/or
215/945-7000).
WILSHIRE ENTERPRISES: Receives Delisting Notice From NYSE Amex
--------------------------------------------------------------
Wilshire Enterprises, Inc. disclosed that on January 12, 2010 the
Company received notice from NYSE Amex, LLC of its intent to
delist the Company's common stock from the Exchange. The Company
will not appeal this decision and pursuant to the terms of the
notice, if the Company elects not to appeal the Exchange's
decision by January 19, 2010, it will become final. The staff of
the Exchange will then suspend trading in the Company's common
stock on the Exchange and file an application with the Securities
and Exchange Commission to strike the Company's common stock from
listing and registration on the Exchange.
As previously announced, on December 1, 2009 the Company received
a notice dated November 30, 2009 from NYSE Amex indicating that
the Company was not in compliance with the continued listing
standards set forth in Section 1003(a)(ii) of the Exchange's
Company Guide with stockholders' equity of less than $4,000,000
and losses from continuing operations and/or net losses in three
out of its four most recent fiscal years and Section 1003(a)(iii)
of the Exchange's Company Guide with stockholders' equity of less
than $6,000,000 and losses from continuing operations and/or net
losses in its five most recent fiscal years. The Company was
afforded the opportunity to submit a plan to NYSE Amex by December
30, 2009, which was later extended to January 6, 2010, addressing
how it intended to regain compliance with Section 1003(a)(ii) and
Section 1003(a)(iii) of the Company Guide. On December 30, 2009,
the Company announced that, after careful review and
consideration, it would not be able to submit a plan to regain
compliance with the NYSE Amex continued listing standards.
The Company expects that its common stock will be traded on the
over-the-counter market and quoted on the OTC Bulletin Board upon
delisting from the NYSE Amex. The Company noted that there can be
no assurance that any broker-dealer will be willing to act as a
market maker in the Company's shares or that, if such quotations
begin, they will continue for any length of time.
About Wilshire Enterprises
Wilshire Enterprises Inc. is engaged primarily in the ownership
and management of real estate investments in Arizona, Texas and
New Jersey. Wilshire's portfolio of properties includes five
rental apartment properties with 950 units, 10 condominium units,
two office buildings and a retail/office center with approximately
200,000 square feet of office and retail space, and slightly more
than 19 acres of land.
YOUNG BROADCASTING: Creditors Fight Lenders Over Ch. 11 Plan
------------------------------------------------------------
Law360 reports that the unsecured creditors committee in the Young
Broadcasting Inc. bankruptcy has heated up the debate over whether
the court will adopt its restructuring plan or a competing plan
from the senior lenders, calling the lenders' complaints about
plan fairness "flat wrong."
Young Broadcasting, Inc. -- http://www.youngbroadcasting.com/--
owns 10 television stations and the national television
representation firm, Adam Young, Inc. Five stations are
affiliated with the ABC Television Network (WKRN-TV -Nashville,
TN, WTEN-TV - Albany, NY, WRIC-TV - Richmond, VA, WATE-TV -
Knoxville, TN, and WBAY-TV - Green Bay, WI), three are affiliated
with the CBS Television Network (WLNS-TV - Lansing, MI, KLFY-TV -
Lafayette, LA and KELO-TV - Sioux Falls, SD), one is affiliated
with the NBC Television Network (KWQC-TV - Davenport, IA) and one
is affiliated with MyNetwork (KRON-TV - San Francisco, CA). In
addition, KELO- TV- Sioux Falls, SD is also the MyNetwork
affiliate in that market through the use of its digital channel
capacity.
The Company and its affiliates filed for Chapter 11 protection on
February 13, 2009 (Bankr. S.D.N.Y. Lead Case No. 09-10645). Jo
Christine Reed, Esq., at Sonnenschein Nath & Rosenthal LLP,
represents the Debtors in their restructuring effort. The Debtors
selected UBS Securities LLC as consultant; Ernst & Young LLP as
accountant; Epiq Bankruptcy Solutions LLC as claims agent; and
David Pauker chief restructuring officer Andrew N. Rosenberg,
Esq., at Paul Weiss Rifkind Wharton & Harrison LLP, serves as
counsel to the official unsecured creditors committee.
ZISCO RESTAURANT: Files for Chapter 11 Bankruptcy Again
-------------------------------------------------------
According to Democrat and Chronicle, Zisco Restaurant LLC made a
voluntary filing under Chapter 11 in U.S. Bankruptcy Court in
Rochester. The company filed for protection in July 2008 but it
was dismissed.
Zisco Restaurant LLC owns Rochester's Highland Park Diner.
* Large Companies With Insolvent Balance Sheets
-----------------------------------------------
Total
Share- Total
Total Holders' Working
Assets Equity Capital
Company Ticker ($MM) ($MM) ($MM)
------- ------ ------ -------- -------
ACCO BRANDS CORP ABD US 1,078 (103) 217
ADVANCED BIOMEDI ABMT US 0 (1) (1)
AFC ENTERPRISES AFCE US 116 (23) (0)
AFFYMAX INC AFFY US 145 (3) 7
AGA MEDICAL HOLD AGAM US 333 (48) 29
AMER AXLE & MFG AXL US 1,953 (740) 33
AMR CORP AMR US 25,754 (2,859) (1,448)
ARTIO GLOBAL INV ART US 280 (33) -
ARTIO GLOBAL INV A1I GR 280 (33) -
ARVINMERITOR INC ARM US 2,508 (1,248) 27
AUTOZONE INC AZO US 5,386 (484) (186)
BLOUNT INTL BLT US 488 (22) 29
BLUEKNIGHT ENERG BKEP US 317 (134) (4)
BOARDWALK REAL E BEI-U CN 2,406 (37) -
BOARDWALK REAL E BOWFF US 2,406 (37) -
BOEING CO BA US 58,667 (877) (1,822)
BOEING CO BAB BB 58,667 (877) (1,822)
BOEING CO-CED BA AR 58,667 (877) (1,822)
CABLEVISION SYS CVC US 10,128 (5,193) (112)
CARDTRONICS INC CATM US 457 (8) (42)
CC MEDIA-A CCMO US 17,696 (7,021) 1,508
CENTENNIAL COMM CYCL US 1,481 (926) (52)
CENVEO INC CVO US 1,601 (179) 203
CHENIERE ENERGY CQP US 1,919 (472) 28
CHENIERE ENERGY LNG US 2,789 (408) 204
CHOICE HOTELS CHH US 353 (133) (13)
CINCINNATI BELL CBB US 2,011 (614) 22
CINRAM INTERNATI CRW-U CN 937 (2) 109
CLOROX CO CLX US 4,598 (47) (665)
CYTORI THERAPEUT CYTX US 25 (1) 11
DELCATH SYSTEMS DCTH US 7 (5) (5)
DEXCOM DXCM US 54 (9) 26
DISH NETWORK-A DISH US 8,659 (1,381) 711
DOMINO'S PIZZA DPZ US 444 (1,350) 107
DUN & BRADSTREET DNB US 1,600 (720) (182)
DYAX CORP DYAX US 52 (49) 24
EASTMAN KODAK EK US 7,483 (651) 935
ENERGY COMPOSITE ENCC US - (0) (0)
EPICEPT CORP EPCT SS 12 (5) 6
EXELIXIS INC EXEL US 421 (143) 92
EXTENDICARE REAL EXE-U CN 1,655 (48) 126
FORD MOTOR CO F US 205,896 (7,270) (9,751)
FORD MOTOR CO F BB 205,896 (7,270) (9,751)
GLG PARTNERS INC GLG US 467 (277) 168
GLG PARTNERS-UTS GLG/U US 467 (277) 168
GREAT ATLA & PAC GAP US 3,025 (358) 249
HEALTHSOUTH CORP HLS US 1,754 (535) 36
HOVNANIAN ENT-A HOV US 2,025 (316) 1,261
IMS HEALTH INC RX US 2,111 (43) 231
INCYTE CORP INCY US 473 (199) 358
INTERMUNE INC ITMN US 157 (83) 93
IPCS INC IPCS US 559 (33) 72
JAZZ PHARMACEUTI JAZZ US 102 (82) (9)
JUST ENERGY INCO JE-U CN 1,378 (350) (392)
KL ENERGY CORP KLEG US 5 (3) (7)
KNOLOGY INC KNOL US 644 (42) 21
LIN TV CORP-CL A TVL US 773 (188) 7
LINEAR TECH CORP LLTC US 1,513 (114) 1,062
MANNKIND CORP MNKD US 289 (2) 35
MEAD JOHNSON MJN US 1,964 (698) 502
MEDIACOM COMM-A MCCC US 3,722 (435) (254)
MONEYGRAM INTERN MGI US 5,907 (33) (55)
MOODY'S CORP MCO US 1,874 (648) (306)
NATIONAL CINEMED NCMI US 608 (505) 85
NAVISTAR INTL NAV US 10,027 (1,739) 1,563
NPS PHARM INC NPSP US 155 (222) 72
OCH-ZIFF CAPIT-A OZM US 1,976 (88) -
OSIRIS THERAPEUT OSIR US 111 (3) 49
OVERSTOCK.COM OSTK US 144 (3) 34
PALM INC PALM US 1,327 (151) 61
PDL BIOPHARMA IN PDLI US 264 (242) (16)
PETROALGAE INC PALG US 3 (40) (7)
PRIMEDIA INC PRM US 241 (111) (14)
PROTECTION ONE PONE US 628 (83) 29
QWEST COMMUNICAT Q US 20,225 (1,031) 766
REGAL ENTERTAI-A RGC US 2,512 (259) (14)
REVLON INC-A REV US 802 (1,043) 105
SALLY BEAUTY HOL SBH US 1,491 (614) 342
SANDRIDGE ENERGY SD US 2,311 (191) 1
SEALY CORP ZZ US 1,015 (108) 157
SELECT COMFORT C SCSS US 82 (39) (69)
SIGA TECH INC SIGA US 8 (11) (4)
SINCLAIR BROAD-A SBGI US 1,629 (132) (18)
STEREOTAXIS INC STXS US 40 (15) 1
SUCCESSFACTORS I SFSF US 181 (3) 3
SUN COMMUNITIES SUI US 1,189 (95) -
TALBOTS INC TLB US 840 (191) (4)
TAUBMAN CENTERS TCO US 2,607 (467) -
TENNECO INC TEN US 2,939 (213) 233
THERAVANCE THRX US 183 (175) 124
UAL CORP UAUA US 18,347 (2,645) (2,111)
UNISYS CORP UIS US 2,741 (1,146) 187
UNITED RENTALS URI US 3,895 (18) 312
US AIRWAYS GROUP LCC US 7,744 (260) (552)
VENOCO INC VQ US 715 (169) (13)
VERMILLION INC VRMLQ US 7 (25) (3)
VIRGIN MOBILE-A VM US 307 (244) (138)
VIRNETX HOLDING VHC US 4 (0) (0)
WARNER MUSIC GRO WMG US 4,070 (143) (650)
WEIGHT WATCHERS WTW US 1,077 (748) (329)
WORLD COLOR PRES WC CN 2,641 (1,736) 479
WORLD COLOR PRES WC/U CN 2,641 (1,736) 479
WR GRACE & CO GRA US 3,937 (312) 1,095
ZYMOGENETICS INC ZGEN US 243 (22) 59
*********
Monday's edition of the TCR delivers a list of indicative prices
for bond issues that reportedly trade well below par. Prices are
obtained by TCR editors from a variety of outside sources during
the prior week we think are reliable. Those sources may not,
however, be complete or accurate. The Monday Bond Pricing table
is compiled on the Friday prior to publication. Prices reported
are not intended to reflect actual trades. Prices for actual
trades are probably different. Our objective is to share
information, not make markets in publicly traded securities.
Nothing in the TCR constitutes an offer or solicitation to buy or
sell any security of any kind. It is likely that some entity
affiliated with a TCR editor holds some position in the issuers'
public debt and equity securities about which we report.
Each Tuesday edition of the TCR contains a list of companies with
insolvent balance sheets whose shares trade higher than $3 per
share in public markets. At first glance, this list may look like
the definitive compilation of stocks that are ideal to sell short.
Don't be fooled. Assets, for example, reported at historical cost
net of depreciation may understate the true value of a firm's
assets. A company may establish reserves on its balance sheet for
liabilities that may never materialize. The prices at which
equity securities trade in public market are determined by more
than a balance sheet solvency test.
A list of Meetings, Conferences and Seminars appears in each
Wednesday's edition of the TCR. Submissions about insolvency-
related conferences are encouraged. Send announcements to
conferences@bankrupt.com/
On Thursdays, the TCR delivers a list of recently filed
Chapter 11 cases involving less than $1,000,000 in assets and
liabilities delivered to nation's bankruptcy courts. The list
includes links to freely downloadable images of these small-dollar
petitions in Acrobat PDF format.
Each Friday's edition of the TCR includes a review about a book of
interest to troubled company professionals. All titles are
available at your local bookstore or through Amazon.com. Go to
http://www.bankrupt.com/books/to order any title today.
Monthly Operating Reports are summarized in every Saturday edition
of the TCR.
The Sunday TCR delivers securitization rating news from the week
then-ending.
For copies of court documents filed in the District of Delaware,
please contact Vito at Parcels, Inc., at 302-658-9911. For
bankruptcy documents filed in cases pending outside the District
of Delaware, contact Ken Troubh at Nationwide Research &
Consulting at 207/791-2852.
*********
S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter is a daily newsletter co-published
by Bankruptcy Creditors' Service, Inc., Fairless Hills,
Pennsylvania, USA, and Beard Group, Inc., Frederick, Maryland,
USA. Marites Claro, Joy Agravante, Rousel Elaine Tumanda, Howard
C. Tolentino, Joseph Medel C. Martirez, Denise Marie Varquez,
Philline Reluya, Ronald C. Sy, Joel Anthony G. Lopez, Cecil R.
Villacampa, Sheryl Joy P. Olano, Carlo Fernandez, Christopher G.
Patalinghug, and Peter A. Chapman, Editors.
Copyright 2010. All rights reserved. ISSN: 1520-9474.
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are $25 each. For subscription information, contact Christopher
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