/raid1/www/Hosts/bankrupt/TCR_Public/100511.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, May 11, 2010, Vol. 14, No. 129
Headlines
ADMIRAL BAY: Petitions for Foreclosure Action Filed by Lenders
ALTAMIS B.V.: Senior Lenders Vote to Support Prepackaged Plan
ALMATIS B.V.: Proposes to Pay Prepetition Wages of Employees
ALMATIS B.V.: Wants More Time to File Rule 2015.3 Report
ALMATIS B.V.: Proposes Talbot as Cash Mgt. Adviser
AMERICAN CAPITAL: S&P Cuts Counterparty Credit Rating to 'CC'
AMERICAN HOMEPATIENT: Posts $3.8 Million Net Loss in Q1 2010
AMERICAN HOSPITALITY: Files for Chapter 11 in Buffalo, NY
B-G&G INVESTORS: Files for Chapter 11 in New Orleans
BLACK CROW: Has August 10 Extension for Plan Exclusivity
BLUE RIDGE: Hotel Furniture Not Covered by Mechanics Lien
BYSYNERGY LLC: U.S. Trustee Wants Case Converted to Chapter 7
CC MEDIA HOLDINGS: Annual Stockholders' Meeting Set for May 26
CHEMTURA CORP: Pre-1985 Employees Win Stay of Stop Benefits Order
CHEMTURA CORP: Kirkland Charges $6-Mil. for Nov.-Feb. Work
CHEMTURA CORP: U.S. Govt. Seeks Redress of Environmental Harm
CHRISTOPHER COUGHLIN: Files Schedules of Assets & Liabilities
CHRISTOPHER COUGHLIN: Section 341(a) Meeting Scheduled for June 7
CHRISTOPHER COUGHLIN: Taps Christopher Silva as Civil Suit Counsel
CHRISTOPHER COUGHLIN: Wants Kratter & Gustafson as Bankr. Counsel
CONSECO INC: Repurchases $52.5-Mil. of 3.5% Convertible Debentures
COMMERCIAL VEHICLE: Arnold Siemer Holds 9.75% of Shares
COMPUTER WORLD: Court Rejects Lender's Preference Defense
CONGOLEUM CORP: Files Amended Joint Plan Supplement
CROWN MEDIA: Posts $2.3 Million Net Loss for First Quarter
CRS MANAGEMENT: Can Sell Colorado Property for $1,700,000
DORAL FINANCIAL: S&P Affirms 'B-' Counterparty Credit Rating
DOUBLE EXPOSURE: Court OKs Deal with All Points on Unpaid Bills
DUBAI HOLDING: Taps PwC on Potential Debt Restructuring
EIGEN INC: U.S. Trustee Forms 3-Member Creditors Committee
EMPIRE RESORTS: Has Not Paid Bonuses & Stock Awards in 2009
EPIX PHARMACEUTICALS: Auction on May 28 for MRI Imaging Agent
FAIRPOINT COMMS: Has Claims Objections/Settlement Procedures
FAIRPOINT COMMS: Pennsylvania DOR's $5.6-Mil. Claim Expunged
FAIRPOINT COMMS: Taps KPMG for Accounting Services
FINLAY ENTERPRISES: Eisner Resigns as Company's External Auditors
FIREKEEPERS DEVELOPMENT: S&P Raises Issuer Credit Rating to 'B+'
HCA INC: S&P Puts 'B+' Corp. Rating on CreditWatch Positive
HEALTH NET: S&P Puts 'BB-' Rating on CreditWatch Positive
FLEETWOOD ENTERPRISES: "Safe Harbor" Protected DIP Lender
FOOD MANAGEMENT: Motion for Reargument Tied Dist. Ct.'s Hands
FUNDAMENTAL PROVISIONS: Plan Confirmation Hearing Set for July 9
FUNDAMENTAL PROVISIONS: Can Sell Florida Assets for $3 Million
FX LUXURY: Files Chapter 11 Plan of Reorganization
FX LUXURY: NexBank Wants Court to End Debtor Exclusivity
GENERAL GROWTH: Obtains Court Nod of Brookfield-Led Auction
GPX INTERNATIONAL: Court Sets Plan Outline Hearing for June 3
GUIDED THERAPEUTICS: Annual Stockholders' Meeting Set for May 27
HCA INC: Moody's Reviews 'B2' Corporate Family Rating
IL LUGANO: Can Sell Condominium Unit and Pay Broker's Fee
LANDMARK VALLEY: Has Access to Cash Collateral Until July 7
LEAP WIRELESS: To Participate in Jefferies Conference on May 12
LEED CORP: Section 341(a) Meeting Scheduled for June 18
LEED CORP: Taps Robert Maynes as Bankruptcy Counsel
LEHMAN BROTHERS: Barclays Exec Knew of Cushion in Lehman Deal
LIGHTPATH TECHNOLOGIES: Earns $12,052 in Q3 Ended March 31
GENERAL GROWTH: Obtains Court Nod of Brookfield-Led Auction
MAGIC BRANDS: Fidelity Newport, American Blue Bid for Fuddruckers
MAMMOTH CORONA: Court Continues Plan Outline Hearing to May 26
MARKUS KLINKO: Court OKs Deal with All Points on Unpaid Bills
MBD INC: Bankruptcy Court Confirms Plan of Reorganization
MCGRATH'S PUBLICK: Can Sell 2002 GMC Denali to Randy Willet
MERIDIAN RESOURCE: CEO Paul Ching Receives $562,500 in 2009 Pay
MOLECULAR INSIGHT: Posts $17.5 Million Net Loss for Q1 2010
MPG GATEWAY: U.S. Trustee Unable to Form Creditors Committee
NATHAN REUTER: Bitten By Business Partner's Fraud
NEWARK GROUP: Soliciting Votes for Prepackaged Chapter 11 Plan
POWER EFFICIENCY: Annual Stockholders' Meeting Set for May 21
LEAP WIRELESS: To Participate in Jefferies Conference on May 12
PROTECTION ONE: CEO to Receive $2.6MM Severance if Merger Closes
PROTECTION ONE: CEO Ginsburg Receives $896,295 for 2009 Pay
REGAL CINEMAS: Fitch Assigns 'B+/RR4' Rating on $250 Mil. Notes
RENAISSANT LAFAYETTE: Wants Plan Filing Extended Until June 21
RENAISSANT LAFAYETTE: Has Until May 17 to Use Amalgamated Cash
SALANDER-O'REILLY: Furnishings Bring $472,000 at Auction
SAINT VINCENTS: Proposes Grant Thornton as Crisis Managers
SAINT VINCENTS: Wants to Hire Garfunkel as Special Counsel
SAINT VINCENTS: Wants to Hire Putney as Labor Counsel
SCHWAB INDUSTRIES: Cash Collateral Use Subject to Sale of Assets
SCHWAB INDUSTRIES: Files Schedules of Assets and Liabilities
SEA LAUNCH: Obtains $30-Mil. DIP Financing from Energia Overseas
SEVERN BANCORP: Reports Results of April 22 Shareholders' Meeting
SPANSION INC: Emerges from Chapter 11 Reorganization
ST. VINCENTS: Closing May Violate Federal and State WARN Acts
STERLING MINING: Gets Court Nod on $24-Mil. Assets Sale
TAVERN ON THE GREEN: Ch. 7 Trustee Moves to Reclaim Firm's Name
US CONCRETE: Wants 45-Day Extension for Schedules Filing
US CONCRETE: Section 341(a) Meeting Scheduled for June 3
US CONCRETE: Taps Kirkland & Ellis as Bankruptcy Counsel
US CONCRETE: Wants to Employ Pachulski Stang as Co-Counsel
VISTEON CORP: Files Second Amended Plan of Reorganization
VISTEON CORP: Units File GPS Patent Suit Against MiTAC
WEST SHORE: Files Schedules of Assets and Liabilities
WEST SHORE: Taps Downey Brand to Handle Reorganization Case
XERIUM TECHNOLOGIES: Minority Holders Object to Prepackaged Plan
YOUNG BROADCASTING: Unsec. Creditors' Reinstatement Plan Denied
* S&P 2010 Tally of Global Defaults Now at 32
* Bank Failures This Year Now 68 As 4 Banks Shut May 7
* Focus Management Group Launches Office in Columbus
* Getzler Henrich Appoints Colleen Palmer as Managing Director
* SSG Relocates New York Office to Rockefeller Center
* Large Companies with Insolvent Balance Sheets
*********
ADMIRAL BAY: Petitions for Foreclosure Action Filed by Lenders
--------------------------------------------------------------
Admiral Bay Resources Inc. disclosed that the Company's US
subsidiary, Admiral Bay (USA) Inc., is in default under its credit
agreement with its senior lenders, GasRock Capital, LLC and
Midtown Acquisitions, LP. The obligations of Admiral Bay USA
under the credit agreement are secured, as a first priority, by
mortgages over certain of Admiral Bay USA's oil and gas properties
and other related assets. The senior lenders have filed and
served a Petition for Foreclosure on certain assets of Admiral Bay
USA in the District Court of Greenwood County, Kansas. According
to the Petition, Admiral Bay USA is indebted to the lenders in the
principal amount of $42,501,705.70, plus interest at the default
rate from and after March 31, 2010.
The action by Admiral Bay's lenders, outlined as a possible
outcome of ongoing discussions in Company's March 25, 2010 press
release, comes after the Company and its lenders failed to agree
on terms under which Admiral Bay would have been purchased by a
third party. While Admiral Bay and the third party had agreed in
concept to a combination of the companies, Admiral Bay's lenders
rejected the terms of the transaction as total consideration was
less than the outstanding principal balance of the Company's loan
obligation.
Admiral Bay continues to work with its lenders to seek a
consensual resolution to the foreclosure petition, which would
include the lenders agreeing to provide funds for a partial
payment of trade creditors in exchange for such creditors agreeing
to settlement terms and a release of the Company from further
liability and a framework under which Admiral Bay would continue
as a going concern by exchanging encumbered assets of Admiral Bay
USA for full satisfaction of the outstanding secured obligations
owed to the lenders under the credit agreement.
Should these conditions not be met, Admiral Bay would likely seek
protection under the provisions of federal bankruptcy statutes,
which the Company believes would likely result in negligible
recovery for unsecured creditors.
About Admiral Bay Resources
Admiral Bay Resources Inc. is an emerging unconventional gas
production company focused on the development of projects in the
Cherokee Basin in southeast Kansas and the Appalachian Basin in
Pennsylvania. Admiral Bay is listed on the TSX Venture Exchange
under the symbol ADB.
ALTAMIS B.V.: Senior Lenders Vote to Support Prepackaged Plan
-------------------------------------------------------------
Almatis disclosed that at the end of the period for the
solicitation of votes, it has been informed by the balloting and
claims agent, Epiq Bankruptcy Solutions, LLC that 77.4% of voting
holders of its senior first lien debt by amount and 58.1% by
number have voted to accept its prepackaged Plan of
Reorganization. The Plan has therefore received in excess of the
level of support required for acceptance of the Plan by Senior
Lenders; accepting Senior Lenders included the members of the
coordination committee of the Senior Lenders and funds managed by
Oaktree Capital Management, L.P. A combined hearing to approve the
disclosure statement and confirm the Plan has been set for July
19, 2010.
About Chapter 11
Chapter 11 provides a recognized and practical legal framework to
reorganize over-indebted businesses subject to supervision by the
US Bankruptcy Court. The effect of a Chapter 11 filing is to
provide a Company with protection from its creditors while it
develops and implements a plan to reorganize its debt and, if
necessary, its operations. Chapter 11 allows the Company to
continue to operate and maintain its business, under the control
of the Company's current management during the restructuring
process. This includes, among other things, servicing its
customers, receiving supplies and paying wages and salaries to its
employees. The process is therefore regularly used by
fundamentally sound operating companies to protect enterprise
value as they reorganize their debt in an orderly process. Almatis
has chosen Chapter 11 as the preferred legal tool for implementing
its balance sheet restructuring following extensive evaluation of
available alternatives.
g.
About Almatis Group
Alamtis B.V., and its affiliates filed for Chapter 11 on April 30,
2010 (Bankr. S.D.N.Y. Lead Case No. 10-12308). Almatis B.V.
estimated assets of US$500 million to US$1 billion and debts of
more than US$1 billion as of the bankruptcy filing.
Almatis, operationally headquartered in Frankfurt, Germany, is a
global leader in the development, manufacture and supply of
premium specialty alumina products. With nearly 900 employees
worldwide, the company's products are used in a wide variety of
industries, including steel production, cement production, non-
ferrous metal production, plastics, paper, ceramics, carpet
manufacturing and electronic industries. Almatis operates nine
production facilities worldwide and serves customers around the
world. Until 2004, the business was known as the chemical
business of Alcoa. Almatis is now owned by Dubai International
Capital LLC, the international investment arm of Dubai Holding.
Michael A. Rosenthal, Esq., at Gibson, Dunn & Crutcher LLP, serves
as counsel to the Debtors in the Chapter 11 cases. & German
Counsel: Linklaters LLP is the special English and German counsel
and De Brauw Blackstone Westbroek N.V. is Dutch counsel. Epiq
Bankruptcy Solutions, LLC, serves as claims and notice agent.
ALMATIS B.V.: Proposes to Pay Prepetition Wages of Employees
------------------------------------------------------------
Almatis B.V. and its debtor affiliates sought and obtained
interim approval from the U.S. Bankruptcy Court for the Southern
District of New York to pay the prepetition claims of their
employees.
The employee claims include unpaid compensation, reimbursable
expenses, payroll deductions and withholdings, and contributions
to employee benefit plans. The Debtors did not specify the total
amount that should be paid off on account of the Employee Claims.
As of the Petition Date, the Debtors employ about 850 workers at
locations principally within North America, Europe, and Asia.
The Court's interim order also authorizes the Debtors to continue
their benefit plans and programs for their employees, including
health programs, flexible spending plan, life insurance and
disability benefits programs, savings and retirement plans, among
others.
The interim order, however, does not authorize Germany-based
Almatis GmbH and Netherlands-based Almatis B.V. to make any
payment of claims under their severance program or any payment
that would be subject to the so-called "European employee
severance cap."
The two Debtors are presently in mediation with some of their
former workers whose employment expired before their bankruptcy
filing. They could be required to pay those employees up to
$1.05 million in severance payments arising before the Petition
Date.
The Debtors will ask the Court to approve payment under the
severance program or any payment subject to the European employee
severance cap at the May 17, 2010 final hearing.
In connection with the payment of the Employee Claims, the Court
directs the Debtors' banks and other financial institutions to
honor all checks and transfers regardless of whether they were
issued before or after the Petition Date, and to rely on the
Debtors' representations as to which checks and transfers are
authorized to be paid in accordance with the order.
About Almatis Group
Alamtis B.V., and its affiliates filed for Chapter 11 on April 30,
2010 (Bankr. S.D.N.Y. Lead Case No. 10-12308). Almatis B.V.
estimated assets of $500 million to $1 billion and debts of more
than $1 billion as of the bankruptcy filing.
Almatis, operationally headquartered in Frankfurt, Germany, is a
global leader in the development, manufacture and supply of
premium specialty alumina products. With nearly 900 employees
worldwide, the company's products are used in a wide variety of
industries, including steel production, cement production, non-
ferrous metal production, plastics, paper, ceramics, carpet
manufacturing and electronic industries. Almatis operates nine
production facilities worldwide and serves customers around the
world. Until 2004, the business was known as the chemical
business of Alcoa. Almatis is now owned by Dubai International
Capital LLC, the international investment arm of Dubai Holding.
Michael A. Rosenthal, Esq., at Gibson, Dunn & Crutcher LLP, serves
as counsel to the Debtors in the Chapter 11 cases. & German
Counsel: Linklaters LLP is the special English and German counsel
and De Brauw Blackstone Westbroek N.V. is Dutch counsel. Epiq
Bankruptcy Solutions, LLC, serves as claims and notice agent.
ALMATIS B.V.: Wants More Time to File Rule 2015.3 Report
--------------------------------------------------------
Almatis B.V. and its debtor affiliates sought and obtained a
Court ruling for more time file, through and including June 29,
2010, their financial reports on entities in which they hold a
controlling or substantial interest.
Pursuant to Rule 2015.3 of the Federal Rules of Bankruptcy
Procedure, a debtor that filed a Chapter 11 case is required to
file periodic financial reports of the value, operations and
profitability of each entity in which it holds a substantial or
controlling interest.
Some of the Debtors hold a substantial or controlling interesting
in at least eight affiliates, which are located in various
countries including China, Japan, the United Kingdom, France,
Italy, and India.
"Many of these non-debtor affiliates have substantial assets and
operations, and assembling and compiling the financial reports of
the value, operations and profitability of these various non-
debtor affiliates throughout the world will require significant
time and effort by the Debtors' personnel," said Michael
Rosenthal, Esq., at Gibson Dunn & Crutcher LLP, in New York.
About Almatis Group
Alamtis B.V., and its affiliates filed for Chapter 11 on April 30,
2010 (Bankr. S.D.N.Y. Lead Case No. 10-12308). Almatis B.V.
estimated assets of $500 million to $1 billion and debts of more
than $1 billion as of the bankruptcy filing.
Almatis, operationally headquartered in Frankfurt, Germany, is a
global leader in the development, manufacture and supply of
premium specialty alumina products. With nearly 900 employees
worldwide, the company's products are used in a wide variety of
industries, including steel production, cement production, non-
ferrous metal production, plastics, paper, ceramics, carpet
manufacturing and electronic industries. Almatis operates nine
production facilities worldwide and serves customers around the
world. Until 2004, the business was known as the chemical
business of Alcoa. Almatis is now owned by Dubai International
Capital LLC, the international investment arm of Dubai Holding.
Michael A. Rosenthal, Esq., at Gibson, Dunn & Crutcher LLP, serves
as counsel to the Debtors in the Chapter 11 cases. & German
Counsel: Linklaters LLP is the special English and German counsel
and De Brauw Blackstone Westbroek N.V. is Dutch counsel. Epiq
Bankruptcy Solutions, LLC, serves as claims and notice agent.
ALMATIS B.V.: Proposes Talbot as Cash Mgt. Adviser
--------------------------------------------------
Almatis B.V. and its affiliated debtors seek permission from the
Court to employ Talbot Hughes McKillop LLP as their cash
management adviser effective April 30, 2010.
The Debtors tapped the services of the firm to review and to
assist them in preparing cash forecasting and analysis reports,
presentations required in connection with their restructuring and
other reporting obligations. Talbot will also be tasked to
assist the Debtors in responding to information requests from
creditors and their advisers, and assist the executive management
in implementing the steps to complete the restructuring.
Talbot Hughes will be paid for its services on an hourly basis
and will be reimbursed for its necessary expenses. The hourly
rates of the firm's professionals are:
Professionals Hourly Rates
------------- ---------------
Partners GBP625 - GBP795
Directors GBP545
Associates/Senior Associates GBP350 - GBP495
Support Staff GBP85
The Debtors, with Court approval, also propose to indemnify the
firm for any claim arising in connection with its employment.
Talbot Hughes, however, will not be indemnified for any claim
arising from its gross negligence, willful misconduct or breach
of duties.
"[Talbot's] professionals are well qualified to act on the
Debtors' behalf, given their extensive experience and expertise
in the restructuring process and their knowledge of the Debtors'
business," says Almatis Chief Executive Remco de Jong.
Talbot Hughes specializes in crisis stabilization and cash
management, financial restructuring, among other things. The
firm has served as financial restructuring adviser to many other
bankrupt companies and is also familiar with the Debtors'
businesses and financial affairs in light of its previous
employment with the Debtors, according to Mr. de Jong.
In a declaration, Dean Merritt, Esq., a partner at Talbot, has
assured the Court that the firm does not hold or represent
interest adverse to the Debtors, and that it is a "disinterested
person " under Section 101(14) of the Bankruptcy Code.
About Almatis Group
Alamtis B.V., and its affiliates filed for Chapter 11 on April 30,
2010 (Bankr. S.D.N.Y. Lead Case No. 10-12308). Almatis B.V.
estimated assets of $500 million to $1 billion and debts of more
than $1 billion as of the bankruptcy filing.
Almatis, operationally headquartered in Frankfurt, Germany, is a
global leader in the development, manufacture and supply of
premium specialty alumina products. With nearly 900 employees
worldwide, the company's products are used in a wide variety of
industries, including steel production, cement production, non-
ferrous metal production, plastics, paper, ceramics, carpet
manufacturing and electronic industries. Almatis operates nine
production facilities worldwide and serves customers around the
world. Until 2004, the business was known as the chemical
business of Alcoa. Almatis is now owned by Dubai International
Capital LLC, the international investment arm of Dubai Holding.
Michael A. Rosenthal, Esq., at Gibson, Dunn & Crutcher LLP, serves
as counsel to the Debtors in the Chapter 11 cases. & German
Counsel: Linklaters LLP is the special English and German counsel
and De Brauw Blackstone Westbroek N.V. is Dutch counsel. Epiq
Bankruptcy Solutions, LLC, serves as claims and notice agent.
AMERICAN CAPITAL: S&P Cuts Counterparty Credit Rating to 'CC'
-------------------------------------------------------------
Standard & Poor's Ratings Services lowered its long-term
counterparty credit rating on American Capital Ltd., as well as
the issue ratings on its senior unsecured debt, to 'CC' from 'B-'.
At the same time, S&P placed both ratings on Credit Watch with
negative implications.
"The rating actions follow ACAS's announcement of a debt exchange
offer which, if completed, would constitute a distressed exchange
under S&P's published criteria. ACAS is in technical default
presently, since it is in violation of financial covenants under
certain of its borrowing agreements including its unsecured
revolving credit facility, unsecured private debt, and unsecured
public debt," said Standard & Poor's credit analyst Sebnem
Caglayan. "The debt exchange would extend the maturity of certain
of the firm's debt obligations, including a $1.388 billion
revolving credit facility due in 2011, $548 million in public
notes due in 2012, and $339 million in private notes due before or
in 2011. As part of the solicitation to investors, ACAS is
seeking consent to a prepackaged bankruptcy petition."
ACAS's exchange offer is part of a comprehensive financial
restructuring of substantially all of the company's outstanding
$2.350 billion unsecured indebtedness. The restructuring
transaction involves cash principal payments of $960 million at
the consummation of the exchange offer -- set for June 1, 2010 --
and issuance of $1.390 billion in new secured notes with a
maturity of Dec. 31, 2013. The significant unrealized portfolio
depreciation the firm has suffered during 2008 resulted in a
breach of some of its debt covenants, including the minimum
tangible net worth and asset coverage ratio, and has forced the
company to seek covenant relief through financial restructuring.
The CreditWatch Negative action reflects S&P's expectation that
S&P will lower the counterparty credit ratings and the affected
debt ratings on ACAS to default ('D') upon completion of the
exchange offer. "If ACAS is unable to complete the out-of-court
restructuring and must resort to a prepackaged in-court
restructuring or other form of bankruptcy filing or restructuring,
S&P would downgrade the counterparty rating on ACAS to 'D' if
payment of debt service were interrupted. In the longer term,
once the consent offer or other restructuring actions, if any, are
completed, S&P will reassess ACAS's credit profile," Ms. Caglayan
added.
AMERICAN HOMEPATIENT: Posts $3.8 Million Net Loss in Q1 2010
------------------------------------------------------------
American HomePatient, Inc., reported in a press release Wednesday,
that it incurred a net loss of $3.8 million for three months ended
March 31, 2010, compared with a net loss of $5.2 million for the
first quarter of 2009.
Revenues for the first quarter of 2010 were $67.0 million compared
to $66.2 million for the first quarter of 2009, representing an
increase of $845,000, or 1.2%. The increase in revenue is
primarily attributable to growth in the Company's core respiratory
product lines of oxygen and sleep therapy, partially offset by
reductions in revenue associated with non-respiratory home medical
equipment and infusion therapy as a result of the Company's
continued reduction in emphasis of these less profitable product
lines.
Operating expenses declined in the first quarter of 2010 compared
to the first quarter of 2009 by roughly $608,000, or 1.7%. The
decrease in operating expenses were primarily the result of
improved operating efficiencies.
The Company's balance sheet at March 31, 2010, showed
$242.7 million in assets and $277.4 million of liabilities, for a
stockholders' deficit of $34.7 million.
KPMG LLP, in Nashville, Tenn., in its audit report on the
Company's financial statements for the year ended December 31,
2009, expressed substantial doubt about the Company's ability to
continue as a going concern. The independent auditors noted that
the Company has a net capital deficiency and has a net working
capital deficiency resulting from $226.4 million of secured debt
that matured on August 1, 2009.
As reported in the Troubled Company Reporter on April 30, 2010,
the Company has entered into an agreement with its senior debt
holders and its largest stockholder, an investment fund managed by
Highland Capital Management, to complete transactions that are
intended to result in a going-private transaction followed by a
restructuring of the Company's secured debt. The restructuring
agreement contemplates that the Company will seek shareholder
approval to reincorporate in Nevada, and, if approved, the Nevada
entity will commence a tender offer to acquire all outstanding
shares of stock not held by Highland managed accounts for
$0.67 per share. If these transactions are completed, the stock
of American HomePatient would cease to be publicly traded.
"If the Company is unable to restructure the Secured Debt pursuant
to the Restructuring Support Agreement, the Company must refinance
the debt, extend the maturity, restructure or make other
arrangements, some of which could have a material adverse effect
on the value of the Company's common stock. Given the unfavorable
conditions in the current debt market, the Company believes that
third-party refinancing of the debt will not be possible at this
time, which raises substantial doubt about the Company's ability
to continue as a going concern."
A full-text copy of the press release is available for free at:
http://researcharchives.com/t/s?61a8
A full-text copy of the quarterly report on Form 10-Q is available
at no charge at http://researcharchives.com/t/s?61a9
Brentwood, Tenn.-based American HomePatient, Inc., is one of the
nation's largest home health care providers with operations in 33
states. Its product and service offerings include respiratory
services, infusion therapy, parenteral and enteral nutrition, and
medical equipment for patients in their home. American
HomePatient, Inc.'s common stock is currently traded in the over-
the-counter market or, on application by broker-dealers, in the
NASD's Electronic Bulletin Board under the symbol AHOM or AHOM.OB.
AMERICAN HOSPITALITY: Files for Chapter 11 in Buffalo, NY
---------------------------------------------------------
American Hospitality Group LLC filed a Chapter 11 petition on
May 6 in Buffalo, New York (Bankr. W.D.N.Y. Case No. 10-11887).
The Chapter 11 petition says that assets and debt both exceed
$10 million. American Hospitality is the owner of the Grand
Island Holiday Inn in Grand Island, New York. American
Hospitality purchased the hotel in 2004 for $3.2 million.
According to Bloomberg News, the secured lender, Royal Bank of
Canada, filed a motion asking the bankruptcy judge to allow the
state court receiver to remain in possession of the property. The
bank's motion says that the principal amount of the mortgage is
more than $7 million.
Bloomberg recounts that in March, the bank began foreclosure and
obtained an order from a state court judge allowing a receiver to
take control of the hotel's operations pending completion of
foreclosure. When the Chapter 11 petition was filed, the bankrupt
company exercised its rights under bankruptcy law to demand that
the receiver turn back possession and management of the property.
The Toronto-based bank said it advanced $400,000 after the
receiver was put in place to cover payroll.
B-G&G INVESTORS: Files for Chapter 11 in New Orleans
----------------------------------------------------
B-G&G Investors VII LLC filed for Chapter 11 on May 6, 2010
(Bankr. E.D. La. Case No. 10-11593).
B-G&G Investors owns the 336-unit Oakmont Apartments on Westbend
Parkway in New Orleans. The property is in the Algiers section of
New Orleans. The low- to middle-income project has a swimming
pool and tennis courts. Some of the units are leased to the
mentally disabled.
Bloomberg News reports that B-G&G filed for Chapter 11 to regain
possession of the property. The property has a $17 million
mortgage made in 2007 by Inland Mortgage Capital Corp. In
connection with foreclosure, the lender had the sheriff take
possession of the property immediately prior to the Chapter 11
filing.
B-G&G has asked the bankruptcy judge to give back possession and
the right to operate the project.
BLACK CROW: Has August 10 Extension for Plan Exclusivity
--------------------------------------------------------
Bill Rochelle at Bloomberg News reports that Black Crow Media
Group LLC was granted an extension until Aug. 10 of the exclusive
right to propose a Chapter 11 plan. According to the report,
General Electric Capital Corp., the secured lender owed $38.9
million, unsuccessfully opposed the exclusivity extension.
As reported by the TCR on April 14, the Bankruptcy Court rejected
a request by secured lender GE Capital to dismiss the Chapter 11
case of Black Crow. The Court also denied a request by GECC to
modify the automatic stay so it could foreclose on the business.
Black Crow has already obtained approval of $1.5 million in
debtor-in-possession financing. GECC had opposed.
About Black Crow Media
Daytona Beach, Florida-based Black Crow Media Group, LLC, owns and
operates 17 FM and 5 AM radio stations in Daytona Beach, Live Oak,
Valdosta, Huntsville, Alabama, and Jackson, Tennessee.
The Company filed for Chapter 11 bankruptcy protection on
January 11, 2010 (Bankr. M.D. Fla. Case No. 10-00172). The
Company's affiliates -- Black Crow Media, LLC, et al. -- also
filed separate Chapter 11 petitions.
Mariane L. Dorris, Esq., and R. Scott Shuker, Esq., at Latham
Shuker Eden & Beaudine LLP, assist the Company in its
restructuring effort. The Company listed $10,000,001 to
$50,000,000 in assets and $50,000,001 to $100,000,000 in
liabilities.
BLUE RIDGE: Hotel Furniture Not Covered by Mechanics Lien
---------------------------------------------------------
WestLaw reports that personal property supplied to a hotel by a
design and purchasing services contractor, including chairs,
tables, and lamps, was not for "improvement" of the encumbered
hotel, within meaning of Virginia's mechanic's lien statute.
Thus, the contractor was precluded from claiming the personal
property in a mechanics' lien asserted against the hotel, as a
Chapter 11 debtor. The personal property did not change or become
a constituent part of the actual hotel building, but rather,
simply added value by its mere presence without any further
connection to or incorporation into the building. Summit
Community Bank v. Blue Ridge Shadows Hotel & Conference Center,
LLC, --- F.Supp.2d ----, 2010 WL 1253175 (W.D. Va.) (Conrad, J.).
Blue Ridge Shadows Hotel & Conference Center, LLC, and Blue Ridge
Shadows, LLC, sought chapter 11 protection (Bankr. W.D. Va. Case
Nos. 08-51271 and 08-51272) on Dec. 1, 2008. Timothy J. McGary,
Esq. -- tjm@mcgary.com -- in Fairfax, Va., represents the Debtors.
At the time of the filing, the Debtors disclosed $24,799,980 in
assets and $19,682,210 in liabilities.
BYSYNERGY LLC: U.S. Trustee Wants Case Converted to Chapter 7
-------------------------------------------------------------
The U.S. Bankruptcy Court for the District of Arizona will
consider at a hearing on July 16, 2010, at 9:00 a.m., the U.S.
Trustee's motion to convert Bysynergy, LLC's Chapter 11 case to
one under Chapter 7 of the Bankruptcy Code. The hearing will be
held at 123 N. San Francisco Street, Flagstaff, Arizona.
Objections, if any, are due five business days prior to the
hearing date.
Ilene J. Lashinsky, the U.S. Trustee for Region 14, asked the
Court to direct the Debtor to immediately file its disclosure
statement, plan of reorganization, and delinquent monthly
operating reports with the Court, and pay its quarterly fees in
full through first quarter of 2010.
Based in Sedona, Arizona, Bysynergy, LLC is a single purpose,
single asset Delaware limited liability comnay, which primarily
owns 103 single family dtached Finally Platted Lots in Yavapai
County, known as Bella Terra on Oak Creek. The Debtor filed for
Chapter 11 protection on June 25, 2008 (Bankr. D. Ariz. Case No.
08-07680). Jonathan P. Ibsen, at Jaburg & Wilk, PC, represents
the Debtor as its counsel. Steven J. Brown, Esq., at Steve Brown
& Associates, LLC, represents the Official Committee of Unsecured
Creditors as counsel. When Bysynergy, LLC filed for protection
from its creditors, it listed assets of between $10 million and
$50 million, and debts of between $10 million and $50 million.
CC MEDIA HOLDINGS: Annual Stockholders' Meeting Set for May 26
--------------------------------------------------------------
The Annual Meeting of Stockholders of CC Media Holdings, Inc., to
be held at the corporate headquarters of CC Media, located at 200
East Basse Road, in San Antonio, Texas, on May 26, 2010, at
9:00 a.m. local time, for these purposes:
-- to elect 12 directors to serve for the coming year;
-- to ratify the selection of Ernst & Young LLP as the
independent registered public accounting firm of CC Media
for the year ending December 31, 2010; and
-- to transact any other business which may properly come
before the meeting or any adjournment thereof.
Only stockholders of record at the close of business on April 1,
2010, are entitled to notice of and to vote at the annual meeting.
A full-text copy of the Company's proxy statement is available at
no charge at http://ResearchArchives.com/t/s?61b0
CC Media Holdings, Inc., is a diversified media company with three
reportable business segments: Radio Broadcasting, Americas Outdoor
Advertising (consisting primarily of operations in the United
States, Canada and Latin America) and International Outdoor
Advertising.
At December 31, 2009, the Company had total assets of
$18,047,101,000 against total current liabilities of
$1,544,136,000, long-term debt of $20,303,126,000, deferred income
taxes of $2,220,023,000, other long-term liabilities of
$824,554,000; resulting in shareholders' deficit of
$6,844,738,000.
CHEMTURA CORP: Pre-1985 Employees Win Stay of Stop Benefits Order
-----------------------------------------------------------------
Several Uniroyal Non-Union Retirees who began employment prior to
January 1, 1985 and retired after December 31, 1986, took an
appeal to the U.S. District Court for the Southern District of New
York of Judge Gerber's January 6, 2010 ruling that denied
reconsideration and resettlement of the an earlier Bankruptcy
Order dated November 30, 2010, which granted the Debtors the right
to modify or terminate post- employment welfare benefits enjoyed
by the Pre-1985 Employees.
In support of the Appeal, Susan Schneiderman, Esq., at Lemberg &
Associates, in New York, contended that the Bankruptcy Court's
January 2010 Order, which effectively denied the Pre-1985
Employees, except for John Prior, the right to present evidence
that their OPEB Welfare Benefits had vested and therefore, could
not be modified or terminated in the manner sought by the Debtor,
is erroneously based on the information (i) that John Prior alone
sought relief for the Pre-1985 Employees, and (ii) that the Pre-
1985 Employees did not demonstrate excusable neglect with
respect to their failure to timely object to the OPEB Termination
Motion.
Accordingly, the Pre-1985 Employees asked the Bankruptcy Court to
stay the enforcement the Orders until the pending Appeal is
decided on.
Debtors Object
On behalf of the Debtors, Richard M. Cieri, Esq., at Kirkland &
Ellis LLP, in New York, asserted that the Judge Gerber's prior
decisions were correct and the Pre-1985 Employees have failed to
establish any facts that would justify their late objection by
rising to the level of excusable neglect under Rule 60(b)(1) of
the Federal Rules of Civil Procedure.
Accordingly, the Debtors asked Judge Gerber to deny the Pre-1985
Employees' request for a stay.
Mr. Cieri pointed out that in their stay request, the Pre-1985
Employees failed to meet even one of the requirements of Rule
8005 of the Federal Rules of Bankruptcy Procedure for a stay
pending an appeal. It is beyond dispute, he maintained, that the
Pre-1985 Employees have little more than a remote possibility of
succeeding on the merits of their dispute.
In casting their most recent request for relief, the Pre-1985
Employees paint an inaccurate picture of the procedural history
of the case, and fail to reference key portions of the record
that cast serious doubt on the likelihood of success of the
Appeal, Mr. Cieri pointed out.
In a separate filing, Ruth Cusack, the director of global
compensation and benefits for Chemtura Corporation, related that
it will cost the Debtors approximately $164,408 per month or
$1,972,900 per year to cover premium increases in the OPEB Plans.
The Pre-1985 Employees have stated that individuals must wait
until January of every year to enroll in a supplemental plan, Ms.
Cusack pointed out. However, she told the Court, that may not be
the case for all individuals because the change in required
retiree premiums may constitute a loss of coverage, which would
allow the Pre-1985 Employees to enroll in a private individual
Medicare supplement arrangement prior to the January open
enrollment period.
The Debtors are willing to sign a letter for participants who
drop the Debtors' coverage to indicate that the prior health
group plan, which provided a substantial premium subsidy from the
Debtors, has been terminated, according to Ms. Cusack. She added
that even if the change in required retiree premiums does not
constitute a loss of coverage, certain commercial Medicare
supplement plan providers have elected to cover certain
individuals under private Medicare supplemental arrangements
based on the changes to the Debtors' plans as of May 1, 2010, and
the Debtors have provided coverage letters to those new insurance
carriers.
* * *
In an oral ruling, Judge Gerber initially denied the Pre-1985
Employees' request for a stay.
In a subsequent written order, however, the Court granted
reargument as it acknowledged that it failed to consider certain
matters, which are arguably relevant to certain factors
applicable to consideration of the stay request.
On the matter of prejudice to the Debtors resulting from granting
the requested stay, Judge Gerber opined that he regarded as
material a $160,000 per month cost to the Debtors of continuing
the retiree benefits as is. Judge Gerber, however, also said he
overlooked the fact that earlier, the Debtors had sought his
approval to pay up to $12,500,000 in incentive compensation for
their most senior executives -- of which about $3,000,000 would
have been payable with no increase in EBITDA.
Judger Gerber pointed out that the matter of the requested $12.5
million incentive compensation was not mentioned at the hearing
of the Pre-1985 Employees' request. He further noted that it is
not clear whether the Uniroyal Retirees' counsel was aware of it,
but he says that he should have taken judicial notice of it.
"If the Debtors could afford to pay over $1,000,000 per month in
incentive compensation to their most senior executives, opposing
counsel could be heard to argue that the Debtors' claims of
prejudice by paying $160,000 per month in retiree health benefits
during the pendency of an appeal would ring hollow," Judge Gerber
opined.
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)
CHEMTURA CORP: Kirkland Charges $6-Mil. for Nov.-Feb. Work
----------------------------------------------------------
Twenty-one bankruptcy professionals, in separate filings,
submitted to the Court applications for the allowance of fees for
professional services rendered and reimbursement of reasonable
expenses incurred for these interim periods:
Professional Fee Period Fees Expenses
------------ ----------------- ---------- --------
Kirkland & Ellis LLP 11/01/09 to 02/28/10 $6,066,551 $207,403
Deloitte Tax LLP 11/01/09 to 02/28/10 2,910,832 35,505
Deloitte Financial 09/09/09 to 02/28/10 2,761,358 158,005
Advisory Services
LLP
KPMG LLP 11/01/09 to 02/28/10 1,817,098 0
Akin Gump Strauss 11/01/09 to 02/28/10 1,659,444 85,136
Hauer & Feld LLP
Lazard Freres & 11/01/09 to 02/28/10 1,000,000 70,017
Co. LLC
The Genetelli 11/01/09 to 02/28/10 907,572 17,047
Consulting Group
Houlihan Lokey 11/01/09 to 02/28/10 900,000 140,077
Howard & Zukin
Capital, Inc.
Duane Morris LLP 11/01/09 to 02/28/10 867,811 12,558
Morgan Lewis & 12/01/09 to 02/28/10 842,403 19,987
Bockius LLP
Baker & McKenzie 11/01/09 to 02/28/10 688,495 7,820
Katten Muchin 11/01/09 to 02/28/10 630,087 90,123
Rosenman LLP
FTI Consulting, 11/01/09 to 02/28/10 528,816 2,723
Inc.
Howrey LLP 11/01/09 to 02/28/10 522,589 9,611
Duff & Phelps LLC 11/01/09 to 02/28/10 430,978 20,058
Ogilvy Renault LLP 11/01/09 to 02/28/10 188,114 68,837
DLA Piper LLP (US) 11/01/09 to 02/28/10 164,451 4,087
Roberts Mlotkowski 11/01/09 to 02/28/10 118,242 34,184
Safran & Cole PC
O'Melveny & Myers 11/01/09 to 02/28/10 36,135 1,882
LLP
Pillsbury Winthrop 11/01/09 to 02/28/10 17,892 4,757
Shaw Pittman LLP
Allen & Overy LLP 11/01/09 to 02/28/10 GBP163,623 GBP2,020
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)
CHEMTURA CORP: U.S. Govt. Seeks Redress of Environmental Harm
-------------------------------------------------------------
Judge Richard M. Berman of the U.S. District Court for the
Southern District of New York granted the request of the United
States Government, on behalf of federal and state environmental
agencies, for the mandatory withdrawal of reference from the
Bankruptcy Court of Chemtura Corp.'s adversary complaint that
seeks a determination that any environmental obligation on site
they do not presently own or operate would be discharged in
bankruptcy.
Judge Berman concluded that the Debtors' Adversary Complaint
should be withdrawn because it implicates "consideration and
analysis of the Comprehensive Environmental Response,
Compensation and Liability Act of 1980 and the intricacies of
non-bankruptcy law, as opposed to routine application of that
law."
In the Adversary Complaint, the Debtors filed a motion for
summary judgment.
In the District Court, the United States filed a cross motion for
summary judgment.
Preet Bharra, Esq., the United States Attorney for the Southern
District of New York, emphasized that the case is about the
ability of the U.S. governmental entities to ensure that the
Debtors remediate environmental harm for which they are
responsible pursuant to legal obligations set in binding court
and administrative orders, including federal consent decrees, or
self-executing statutory requirements.
The Debtors are legally obligated under existing orders and self
executing statutory obligations to perform work to remediate
pollution that continues to contaminate the environment and poses
risks to human health at certain sites, Mr. Bharra asserts.
The Sites include:
-- the Stauffer Chemical Superfund Site in Axis, Alabama;
-- the Laurel Park, Inc. Superfund Site in Naugatuck,
Connecticut;
-- the Tampa site, located in Tampa, Florida;
-- the Irvine site, located in Irvine, California;
-- the Bradford site, located in Bradford, Pennsylvania;
-- the Court Street site located in Brooklyn, New York; and
-- the Brainards site, located in Brainards, New Jersey.
The Debtors previously asked the District Court to discharge them
from their obligations to perform remediation work by asserting
that judicial and administrative orders requiring cleanup should
be treated as dischargeable "claims" within the meaning of
Section 101(5) of the Bankruptcy Code.
However, Mr. Bharra argues, the Debtors cannot demonstrate that
breach of their obligations to remediate environmental harm gives
rise to a right to payment, and therefore cannot transform
cleanup obligations into dischargeable "claims."
Although Debtors were involved in cleanup efforts at several
sites for years preceding the Petition Date, including years when
they did not allegedly own or operate those sites, the Debtors
have now halted or are seeking to halt their remediation efforts
and are seeking to discharge their obligations to continue with
the cleanup, Mr. Bharra notes. He adds that the Debtors' failure
to comply with their remedial obligations has caused, and
continues to cause, significant threats to human health, public
safety, and the environment.
Mr. Bharra contends that the District Court should grant summary
judgment to the Governmental Entities on the Sites and hold that
the injunctive obligations at those Sites are non-dischargeable.
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)
CHRISTOPHER COUGHLIN: Files Schedules of Assets & Liabilities
-------------------------------------------------------------
Christopher M. Coughlin has filed with the U.S. Bankruptcy Court
for the District of Connecticut its schedules of assets and
liabilities, disclosing:
Name of Schedule Assets Liabilities
---------------- ------ -----------
A. Real Property $1,900,000
B. Personal Property $11,558,049
C. Property Claimed as
Exempt
D. Creditors Holding
Secured Claims $1,682,000
E. Creditors Holding
Unsecured Priority
Claims $10,200
F. Creditors Holding
Unsecured Non-priority
Claims $277,714
----------- -----------
TOTAL $13,458,049 $1,969,914
Old Greenwich, Connecticut-based Christopher M. Coughlin filed for
Chapter 11 bankruptcy protection on April 29, 2010 (Bankr. D.
Conn. Case No. 10-50977). Mark M. Kratter, Esq., at Kratter &
Gustafson, LLC, assists the Company in its restructuring effort.
CHRISTOPHER COUGHLIN: Section 341(a) Meeting Scheduled for June 7
-----------------------------------------------------------------
The U.S. Trustee for Region 2 will convene a meeting of
Christopher M. Coughlin's creditors on June 7, 2010, at 11:00 a.m.
The meeting will be held at The Giaimo Federal Building, 150 Court
Street, Room 309, at intersection of Court and Orange Street, New
Haven, CT 06510.
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.
Old Greenwich, Connecticut-based Christopher M. Coughlin filed for
Chapter 11 bankruptcy protection on April 29, 2010 (Bankr. D.
Conn. Case No. 10-50977). Mark M. Kratter, Esq., at Kratter &
Gustafson, LLC, assists the Company in its restructuring effort.
According to the schedules, the Debtor says that assets total
$13,458,049 while debts total $1,969,914.
CHRISTOPHER COUGHLIN: Taps Christopher Silva as Civil Suit Counsel
------------------------------------------------------------------
Christopher M. Coughlin has asked for authorization from the U.S.
Bankruptcy Court for the District of Connecticut to employ
Christopher Silva to represent the Debtor as plaintiff in a civil
suit namely Coughlin v. Koch pending in the Connecticut Superior
Court for the Judicial District of Stamford/Norwalk at Stamford.
Mr. Silva will:
(a) give your applicant legal advice with respect to the
civil case;
(b) prepare pleadings necessary to bring the civil case; and
(c) perform all other legal services for the Debtor regarding
the civil case.
Mr. Silva will be paid $250 per hour for his services.
Mr. Silva assures the Court that he is a "disinterested person" as
that term is defined in Section 101(14) of the Bankruptcy Code.
Old Greenwich, Connecticut-based Christopher M. Coughlin filed for
Chapter 11 bankruptcy protection on April 29, 2010 (Bankr. D.
Conn. Case No. 10-50977). Mark M. Kratter, Esq., at Kratter &
Gustafson, LLC, assists the Company in its restructuring effort.
According to the schedules, the Debtor says that assets total
$13,458,049 while debts total $1,969,914.
CHRISTOPHER COUGHLIN: Wants Kratter & Gustafson as Bankr. Counsel
-----------------------------------------------------------------
Christopher M. Coughlin has sought permission from the U.S.
Bankruptcy Court for the District of Connecticut to employ the Law
offices of Kratter & Gustafson, LLC, as bankruptcy counsel.
Kratter & Gustafson will:
(a) give the Debtor legal advice with respect to its powers
and duties as debtors-in-possession in the continued
management of its property;
(b) prepare disclosure statement, answers, orders, reports,
plan and other legal papers;
(c) perform all other legal services for your applicant as
debtor-in-possession which may be necessary herein,
including the preparation and filing of modified plans,
and it is necessary for your applicant as debtor-in-
possession to employ an attorney for such professional
services.
Kratter and Gustafson will e paid $350 per hour for its services.
Mark M. Kratter, an attorney at Kratter and Gustafson, assures the
Court that the firm is a "disinterested person" as that term is
defined in Section 101(14) of the Bankruptcy Code.
Old Greenwich, Connecticut-based Christopher M. Coughlin filed for
Chapter 11 bankruptcy protection on April 29, 2010 (Bankr. D.
Conn. Case No. 10-50977). According to the schedules, the Debtor
says that assets total $13,458,049 while debts total $1,969,914.
CONSECO INC: Repurchases $52.5-Mil. of 3.5% Convertible Debentures
------------------------------------------------------------------
Conseco, Inc. disclosed in a press release Wednesday that it has
repurchased $52.5 million of its 3.50% Convertible Debentures due
September 30, 2035 in a privately negotiated transaction. In
connection with the repurchase, the Company completed a third
closing of $52.5 million aggregate principal amount of its 7.0%
Convertible Senior Debentures due 2016 as part of its previously
announced private offering of New Debentures. The Company now has
roughly $293 million of the New Debentures outstanding, and less
than $100,000 of the Old Debentures remain outstanding.
The purchase price for the $52.5 million of Old Debentures was
equal to 100% of the principal amount plus accrued and unpaid
interest. As a result of the repurchase, Conseco expects to
recognize a loss on the extinguishment of debt of roughly
$1 million, representing the write-off of unamortized discount and
issuance costs associated with the Old Debentures that were
repurchased.
The issuance of the $52.5 million of New Debentures was made
pursuant to the purchase agreement that Conseco entered into in
October 2009 relating to the private offering of up to
$293 million of the New Debentures. Conseco received aggregate
net proceeds of roughly $49.4 million in the third closing of the
New Debentures (after taking into account the discounted offering
price less the initial purchaser's discounts and commissions, but
before expenses).
A full-text copy of the press release is available for free at:
http://researcharchives.com/t/s?61a7
Headquartered in Carmel, Indiana, Conseco, Inc. (NYSE: CNO) --
http://www.conseco.com/-- is the holding company for a group of
insurance companies operating throughout the United States that
develop, market and administer supplemental health insurance,
annuity, individual life insurance and other insurance products.
The Company became the successor to Conseco Inc. (Old Conseco), in
connection with the Company's bankruptcy reorganization which
became effective on September 20, 2003. CNO focuses on serving
the senior and middle-income markets. The Company sells
its products through three distribution channels: career agents,
professional independent producers and direct marketing.
At March 31, 2010, the Company had $30.785 billion in assets,
$27.065 billion in liabilities, and $3.720 billion in
shareholders' equity.
* * *
Conseco, Inc. carries Moody's Investors Service's "Caa1" senior
secured debt with a positive outlook.
COMMERCIAL VEHICLE: Arnold Siemer Holds 9.75% of Shares
-------------------------------------------------------
Arnold B. Siemer, in Columbus, Ohio, disclosed he may be deemed to
beneficially own 2,763,226 shares or roughly 9.75% of the common
stock of Commercial Vehicle Group, Inc.
About Commercial Vehicle Group
New Albany, Ohio-based Commercial Vehicle Group, Inc., (Nasdaq:
CVGI) supplies fully integrated system solutions for the global
commercial vehicle market, including the heavy-duty truck market,
the construction and agricultural markets, and the specialty and
military transportation markets. The products include static and
suspension seat systems, electronic wire harness assemblies,
controls and switches, cab structures and components, interior
trim systems (including instrument panels, door panels,
headliners, cabinetry and floor systems), mirrors and wiper
systems specifically designed for applications in commercial
vehicles. The Company has facilities located in the United States
in Arizona, Indiana, Illinois, Iowa, North Carolina, Ohio, Oregon,
Tennessee, Virginia and Washington and outside of the United
States in Australia, Belgium, China, Czech Republic, Mexico,
Ukraine and the United Kingdom.
Commercial Vehicle Group Inc.'s balance sheet at December 31,
2009, showed $250.5 million in total assets and $288.2 million in
total liabilities, resulting in a $37.7 million stockholders'
deficit.
* * *
Commercial Vehicle carries a 'Caa2' Corporate Family Rating and
'Caa2/LD' Probability of Default Rating from Moody's. It has a
'CCC+' corporate credit rating from Standard & Poor's.
COMPUTER WORLD: Court Rejects Lender's Preference Defense
---------------------------------------------------------
WestLaw reports that a loan on which allegedly preferential
payments were made was not incurred in the ordinary course of a
Chapter 11 debtor's business, as required for the lender to
successfully assert an "ordinary course of business" defense to
preference claims. The loan was not recorded as a loan on the
debtor's financial books, but as a payment that the debtor
received on an account receivable from fictitious customer. A
debt cannot be incurred in the "ordinary course of business" if
the debtor engaged in fraudulent conduct in connection therewith.
Furthermore, payments that the debtor made on the loan, following
unusual collection activity by the lender, pursuant to two
separate modifications extending the maturity date, were not made
"in the ordinary course of business or financial affairs of the
debtor and transferee." In re Computer World Solution, Inc., ---
B.R. ----, 2010 WL 1529356 (Bankr. N.D. Ill.) (Cox, J.).
Wells Fargo, Fifth Third Bank, and Yellow Freight, Inc., filed an
involuntary Chapter 11 petition (Bankr. N.D. Ill. Case No. 07-
21123) against Computer World Solution, Inc., on Nov. 9, 2007. On
Nov. 16, 2007, the Debtor consented to the entry of an order for
relief. The debtor was a distributor of imported flat screen
televisions and computer monitors.
On Mar. 28, 2008, the Debtor sued (Bankr. N.D. Ill. Adv. Pro. No.
08-00180) Apple Fund, L.P., and Astor Partners, LLC. Count I of
the complaint alleges that the Debtor made preferential transfers
to the Defendants that are avoidable under 11 U.S.C. Sec. 547.
Count II of the complaint requests recovery of the transfers under
11 U.S.C. Sec. 550(a)(1). Count III requests that the Defendants'
claims against the Debtor's bankruptcy estate be disallowed under
11 U.S.C. Sec. 502(d) because the Defendants have failed to repay
the amount of the transfers in question. The complaint is based
on prepetition transfers totalling $1.5 million.
The Debtor is represented by Brian A. Audette, Esq., Daniel A.
Zazove, Esq., Jason Horwitz, Esq., and Regina L. Ori, Esq., at
Perkins Coie LLP in Chicago.
CONGOLEUM CORP: Files Amended Joint Plan Supplement
---------------------------------------------------
BankruptcyData.com reports that Congoleum Corp. filed a Supplement
to its Fourth Amended Joint Plan of Reorganization with the U.S.
Bankruptcy Court. The Supplement included: Schedule of Rejected
Contracts, Exit Facility Term Sheet, Registration Rights
Agreement, New ABI Agreement, New Indenture, Stockholders'
Agreement, Amended and Restate Bylaw, Amended and Restated
Certificate, Schedule of Initial Directors of Reorganized
Congoleum, Schedule of Officers of Reorganized Congoleum, Schedule
of Distributor Protected Parties, Technical Amendments to Plan
Documents and Schedule of Settling Asbestos Insurance Companies.
About Congoleum Corp.
Based in Mercerville, New Jersey, Congoleum Corporation
(PINKSHEETS: CGMCQ) -- http://www.congoleum.com/-- manufactures
resilient sheet and tile and plank flooring products available in
a wide variety of product features, designs and colors.
The Company filed for Chapter 11 protection on December 31, 2003
(Bankr. D. N.J. Case No. 03-51524) as a means to resolve claims
asserted against it related to the use of asbestos in its products
decades ago. Richard L. Epling, Esq., Robin L. Spear, Esq., and
Kerry A. Brennan, Esq., at Pillsbury Winthrop Shaw Pittman LLP,
and Paul S. Hollander, Esq., and James L. DeLuca, Esq., at Okin,
Hollander & DeLuca, LLP, represent the Debtors.
The Asbestos Claimants' Committee is represented by Peter Van N.
Lockwood, Esq., and Ronald Reinsel, Esq., at Caplin & Drysdale,
Chtd. The Bondholders' Committee is represented by Michael S.
Stamer, Esq., and James R. Savin, Esq., at Akin Gump Strauss Hauer
& Feld LLP. Nancy Isaacson, Esq., at Goldstein Isaacson, PC,
represents the Official Committee of Unsecured Creditors.
R. Scott Williams, Esq., at Haskell Slaughter Young & Rediker,
LLC, the Court-appointed Futures Claimants Representative, is
represented by Roger Frankel, Esq., Richard Wyron, Esq., and
Jonathan P. Guy, Esq., at Orrick Herrington & Sutcliffe LLP, and
Stephen B. Ravin, Esq., at Forman Holt Eliades & Ravin LLC.
American Biltrite, Inc. (AMEX: ABL), which owns 55% of Congoleum,
is represented by Matthew Ward, Esq., Mark S. Chehi, Esq.,
Christopher S. Chow, Esq., and Matthew P. Ward, Esq., at Skadden
Arps Slate Meagher & Flom.
Various entities have filed bankruptcy plans for the Debtors. In
February 2008, the legal representative for future asbestos-
related claimants; the asbestos claimants' committee; the official
Committee of holders of the Company's 8-5/8% Senior Notes due
August 1, 2008; and Congoleum jointly filed a joint plan of
reorganization. Various objections to the Joint Plan were filed.
In June 2008, the Bankruptcy Court issued a ruling that the Joint
Plan was not legally confirmable.
In August 2008, the Bondholders' Committee, the ACC, the FCR,
representatives of holders of prepetition settlements and
Congoleum entered into a term sheet describing the proposed
material terms of a new plan of reorganization and a settlement of
avoidance litigation with respect to prepetition claim settlement.
Certain insurers and a large bondholder filed objections to the
Litigation Settlement or reserved their rights to object to
confirmation of the Amended Joint Plan. The Bankruptcy Court
approved the Litigation Settlement in October 2008. The Amended
Joint Plan was filed in November 2008.
In January 2009, certain insurers filed a motion for summary
judgment seeking denial of confirmation of the Amended Joint Plan.
On February 26, 2009, the Bankruptcy Court rendered an opinion
denying confirmation of the Amended Joint Plan. Moreover, the
Bankruptcy Court dismissed Congoleum's bankruptcy case.
On February 27, 2009, Congoleum and the Bondholders' Committee
appealed the Order of Dismissal and the ruling denying plan
confirmation to the U.S. District Court for the District of New
Jersey. The District Court overturned the dismissal order, and
assumed jurisdiction of the bankruptcy proceedings.
CROWN MEDIA: Posts $2.3 Million Net Loss for First Quarter
----------------------------------------------------------
Crown Media Holdings, Inc,. filed on May 5, 2010, its quarterly
report on Form 10-Q, showing a net loss of $2.3 million on
$68.4 million of revenue for the three months ended March 31,
2010, compared with a net loss of $7.4 million on $71.0 million of
revenue for the same period of 2009.
The Company's balance sheet as of March 31, 2010, showed
$700.6 million of assets and $1.406 billion of total liabilities,
for a stockholders deficit of $705.1 million.
Cash provided by operating activities totaled $7.8 million for the
first quarter of 2010 compared to cash used in operating
activities of $385,000 for the same period last year.
KPMG LLP, in Denver, expressed substantial doubt about Crown Media
Holdings, Inc. and subsidiaries' ability to continue as a going
concern in its report on the Company's consolidated financial
statements as of and for the year ended December 31, 2009. The
independent auditors noted that of the Company's significant
short-term debt obligations.
On February 26, 2010, the Company entered into a Master
Recapitalization Agreement with Hallmark Cards, Incorporated, HC
Crown Corp. (Hallmark Cards' wholly owned subsidiary) and related
entities. The Recapitalization transactions include, among other
things, $315.0 million principal amount of the HC Crown Debt being
restructured into new debt instruments, $185.0 million principal
amount of the HC Crown Debt being converted into convertible
preferred stock of the Company, Class B Common Stock being
converted into Class A Common Stock with Class A Common Stock
becoming the only authorized and outstanding common stock of the
Company, and the balance of the HC Crown Debt being converted into
shares of Class A Common Stock. Upon execution of the Master
Recapitalization Agreement, the automatic termination of the
waiver under the existing Amended and Restated Waiver and Standby
Purchase Agreement with Hallmark Cards and HC Crown was extended
until August 31, 2010; the Waiver Agreement defers payment dates
on HC Crown Debt (excluding accounts payable).
"If for any reason the Recapitalization is not consummated, the
Company would be unable to meet its obligations which become due
on August 31, 2010, which provides substantial doubt about the
Company's ability to continue as a going concern."
A full-text copy of the quarterly report is available for free at:
http://researcharchives.com/t/s?61aa
Studio City, Calif.-based Crown Media Holdings, Inc. (NASDAQ:
CRWN) -- http://www.hallmarkchannel.com/-- owns and operates
cable television channels dedicated to high quality, broad appeal,
entertainment programming. The Company currently operates and
distributes Hallmark Channel in both high definition (HD) and
standard definition (SD) to 90 million subscribers in the
U.S. Crown Media also operates a second 24-hour linear channel,
Hallmark Movie Channel, available in both HD and SD. Significant
investors in Crown Media Holdings include: Hallmark Entertainment
Holdings, Inc., a subsidiary of Hallmark Cards, Incorporated,
Liberty Media Corp., and J.P. Morgan Partners (BHCA), LP, each
through their investments in Hallmark Entertainment Investments
Co.; VISN Management Corp., a for-profit subsidiary of the
National Interfaith Cable Coalition: and The DIRECTV Group, Inc.
CRS MANAGEMENT: Can Sell Colorado Property for $1,700,000
---------------------------------------------------------
The Hon. T.M. weaver of the U.S. Bankruptcy Court for the Western
District of Oklahoma authorized CRS Management Company LLC to sell
and convey its 4.11 acre track containing six buildings located in
Greely, Colorado, to Pinnacle Commercial Group, LLC, free and
clear of liens.
Pinnacle agreed to purchase the property on these terms:
-- the gross sale price of $1,700,000
-- a right of first refusal up to $2,500,000; and
-- a stalking horse provision.
Oklahoma City, Oklahoma-based CRS Management Company LLC filed for
Chapter 11 bankruptcy protection on February 5, 2010 (Bankr. W.D.
Okla. Case No. 10-10531). The Company has assets of $16,115,184,
and total debts of $18,765,000.
DORAL FINANCIAL: S&P Affirms 'B-' Counterparty Credit Rating
------------------------------------------------------------
Standard & Poor's Ratings Services said that it affirmed its
ratings on Doral Financial Corp., including the 'B-' counterparty
credit rating.
At the same time, S&P removed them from CreditWatch. The ratings
had been placed on CreditWatch with developing implications on
April 19, 2010, following a capital raise of $600 million,
$420 million of which was contingent upon successfully acquiring a
failed banking institution. The outlook is negative.
The affirmation and removal from CreditWatch primarily reflected
the company's ability to raise $180 million in common equity, but
also its unsuccessful efforts to participate in any Federal
Deposit Insurance Corp.-assisted deals in Puerto Rico.
"The equity raise will materially boost Doral's capital ratios,
providing it with more flexibility to deal with its ongoing asset
quality problems," said Standard & Poor's credit analyst Kevin
Cole. "However, it also means that Doral will have to return to
investors the $420 million of its recent $600 million capital
raise that was contingent upon acquiring a failed banking
institution in Puerto Rico."
S&P thinks the consolidation in the Puerto Rican banking system
has both positive and negative implications for Doral. Since
institutions that already had a presence in Puerto Rico acquired
three failed Puerto Rican banks and certain brokered deposits were
excluded from the transactions, S&P expects that competition for
deposits may decrease slightly. Nonetheless, the acquisitions by
other banks lower Doral's market share, putting it in a somewhat
weaker competitive position, and S&P believes the bank could have
more difficulty gaining assets and raising additional capital if
needed.
The negative outlook reflects S&P's belief that the rating is
likely to remain under pressure, largely reflecting the very weak
credit quality of the company's loan portfolio, its reduced
profitability, and weak economic conditions.
DOUBLE EXPOSURE: Court OKs Deal with All Points on Unpaid Bills
---------------------------------------------------------------
Jacqueline Palank at Dow Jones' Daily Bankruptcy Review reports
that Markus Klinko Photography Inc. and Double Exposure Studios
LLC have won bankruptcy court approval of a deal with creditor All
Points Capital Corp. that ends disputes over unpaid bills.
Ms. Palank notes that All Points had filed nearly $494,000 in
claims against Markus Klinko and Indrani, also known as Julia I.
Pal-Chaudhuri, in their personal bankruptcies as well as the
bankruptcies of their photography firms. Dow Jones says the
settlement reduces All Points' claim to $122,000, none of which
Klinko and Indrani are actually paying themselves. According to
the report, Mr. Klinko's mother Hedwig will cover $102,000, while
the remaining $20,000 will be covered by their fashion stylist pal
-- and reality show castmate -- GK Reid. Indrani had paid $22,000
toward All Points' claims last year; that money will now be made
available to her creditors and those of her photography studio,
Double Exposure.
According to Dow Jones, the photographers heralded the deal as
resolving "a substantial hurdle" to their reorganization.
About Double Exposure
Julia Pal-Chaudhuri is a New York-based celebrity photographer who
owns Double Exposure Studio. She and Markus Klinko were formerly
a romantic couple and remain business partners. The two have
photographed A-listers like Will Smith and Beyonce and shot work
for major clients including Nike and Vogue.
Julia Pal-Chaudhuri's Double Exposure Studio LLC filed for Chapter
11 bankruptcy protection in August 2009 before the U.S. Bankruptcy
Court for the Southern District of New York, blaming it on
recession. Double Exposure listed less than $50,000 in assets and
$100,000 to $500,000 in debts, which include unpaid taxes, Photo
District News reported.
About Markus Klinko
Markus Klinko is a celebrity photographer. He and fellow
photographer Julia Pal-Chaudhuri were formerly a romantic couple
and remain business partners. They have photographed A-listers
like Will Smith and Beyonce and shot work for major clients
including Nike and Vogue.
Markus Klinko filed for Chapter 11 bankruptcy protection in August
2009 in the U.S. Bankruptcy Court for the Southern District of New
York. Mr. Klinko, according to Photo District News, said that his
photography business has $1 million to $10 million in liabilities
and less than $50,000 in assets.
DUBAI HOLDING: Taps PwC on Potential Debt Restructuring
-------------------------------------------------------
Dow Jones Newswires' Ainsley Thomson reports that a person
familiar with the matter said Monday Dubai Holding Commercial
Operations Group has appointed PricewaterhouseCoopers as advisers
ahead of a potential debt restructuring.
Dow Jones notes Dubai Holding Commercial Operations is part of the
Dubai Holding conglomerate controlled by the emirate's ruler Sheik
Mohammed bin Rashid Al Maktoum. Dubai Holding Commercial
Operations oversees Dubai Holding's property, business parks and
hospitality investments including hotels operator Jumeirah.
Dow Jones recalls that Dubai Holding Commercial Operations in
January ended its relationship with Standard & Poor's Corp. after
the rating agency said it had concerns about transparency. Just
before the relationship was terminated, S&P had lowered the
company's credit rating to B with a negative outlook, from BB+,
saying its exposure to the severe downturn in Dubai's real-estate
market constrained its credit quality.
EIGEN INC: U.S. Trustee Forms 3-Member Creditors Committee
----------------------------------------------------------
Roberta A. DeAngelis, Acting U.S. Trustee for Region 3, appointed
three members to the official committee of unsecured creditors in
the Chapter 11 case of Eigen, Inc.
The Creditors Committee members are:
1. Nest Technologies Corp.
c/o Network Systems & Technologies Ltd.
Attn: Michael Staples
4511 Singer Ct., Suite 201
Chantilly, VA 20151
Tel: (703) 653-1113
Fax: (703) 803-8319
2. Palmer Kazanjian Wohl Hodson LLP
Attn: Larry M. Kazanjian
520 Capitol Mall, Suite 600
Sacramento, CA 55814
Tel: (916) 442-3552
Fax: (916) 442-3606
3. NJK & Associates Inc.
Attn: Natalie J. Kennel
13721 Via Tres Vista
San Diego, CA 92129
Tel: (858) 705-0350
Fax: (858) 764-9739
Official creditors' committees have the right to employ legal and
accounting professionals and financial advisors, at the Debtor's
expense. They may investigate the Debtor's business and financial
affairs. Importantly, official committees serve as fiduciaries to
the general population of creditors they represent. Those
committees will also attempt to negotiate the terms of a
consensual Chapter 11 plan -- almost always subject to the terms
of strict confidentiality agreements with the Debtors and other
core parties-in-interest. If negotiations break down, the
Committee may ask the Bankruptcy Court to replace management with
an independent trustee. If the Committee concludes reorganization
of the Debtor is impossible, the Committee will urge the
Bankruptcy Court to convert the Chapter 11 cases to a liquidation
proceeding.
About Eigen
Grass Valley, California-based Eigen, Inc., a.k.a. Eigen, LLC,
develops tools for healthcare professionals. The Company filed
for Chapter 11 bankruptcy protection on March 30, 2010 (Bankr. D.
Del. Case No. 10-11061). Christopher A. Ward, Esq., at Polsinelli
Shughart PC, assists the Company in its restructuring effort. In
its petition, the Company estimated its assets and debts at
$10,000,001 to $50 million.
EMPIRE RESORTS: Has Not Paid Bonuses & Stock Awards in 2009
-----------------------------------------------------------
Empire Resorts, Inc., has not doled out cash bonuses and stock
awards to executives for the past two years, according to a
regulatory filing with the Securities and Exchange Commission.
Joseph A. D'Amato, the Company's chief executive officer and chief
financial officer, received $199,273 for 2009 work as CFO. Prior
to December 24, 2009, Mr. D'Amato served solely as the Company's
CFO. He agreed to serve as CEO and CFO of the Company, effective
January 1, 2010. In 2009, Mr. D'Amato received $10,000 for
relocation allowance.
Empire Resorts paid Joseph E. Bernstein, its Chief Executive
Officer until December 31, 2009, $1,203,846 in total compensation
for 2009. Mr. Bernstein joined the Company in June that year to
replace David P. Hanlon.
Mr. Hanlon, who served as the Company's CEO and whose employment
terminated on April 13, 2009, was paid $924,647 for 2009 work. He
took home $530,875 in total pay for 2008 and $1,008,173 for 2007.
Clifford A. Ehrlich, President and General Manager of Monticello
Raceway Management, Inc., the Company's wholly owned subsidiary,
was paid $528,980 for 2009 work and $235,054 for 2008 work.
Ronald J. Radcliffe, the Company's Chief Financial Officer, was
paid $428,591 for 2009, $489,102 for 2008 and $629,362 for 2007.
On April 14, 2009, Mr. Radcliffe tendered his resignation,
effective June 30, 2009.
Eric Reehl, the Company's interim Chief Financial Officer and
Chief Restructuring Officer, was paid $124,010 for 2009. The
Company tapped Mr. Reehl pursuant to an agreement with Nima Asset
Management LLC, which was terminated on November 7, 2009.
Hilda Manuel, who served as the Company's Senior Vice President
for Native American Affairs until end of April 2009, was paid
$248,370 for 2009 work.
Charles Degliomini, an Executive Vice President, was paid $500,150
for 2009.
The filing also disclosed Mr. Hanlon received $100,000 in 2009 for
consulting fees, $100,000 for severance pay and $5,000 in matching
contributions from the Company's 401(k) benefit plan. In 2008,
the Company provided a life insurance policy for Mr. Hanlon at a
cost of $21,675. Mr. Hanlon also received $9,200 in matching
contributions from the Company's 401(k) benefit plan.
In 2009, Mr. Radcliffe received $51,667 for severance pay and
$3,100 in matching contributions from the Company's 401(k) benefit
plan.
In 2009, Ms. Manuel received $45,000 for severance pay, $30,000 in
consulting fees, $25,000 for relocation allowance and $1,250 in
matching contributions from the Company's 401(k) benefit plan.
As reported by the Troubled Company Reporter on April 30, 2010,
the Supreme Court of the State of New York in Sullivan County on
April 8 issued a summary judgment -- at the behest of The Bank of
New York Mellon Corporation and The Depository Trust Company --
declaring that Empire Resorts is required to repurchase $65
million of 5-1/2% senior convertible notes issued by the Company
in July 2004, and that the Company is in default under the Notes
with respect to its failure to repurchase the Notes on July 31,
2009, and that the Company must now repurchase the Notes. The
Company is working with its financial advisor, Merrill Lynch,
Pierce, Fenner & Smith Incorporated, and its legal counsel to
consider its available financial and legal alternatives in
response to the Decision.
About Empire Resorts
Based in Monticello, New York, Empire Resorts, Inc. (NASDAQ: NYNY)
-- http://www.empireresorts.com/-- currently owns and operates
Monticello Casino & Raceway, a video gaming machine and harness
racing track and casino located in Monticello, New York, 90 miles
northwest of New York City.
The Company's balance sheet as of December 31, 2009, showed $89.4
million in assets, $73.9 million of debts, and $15.5 million of
stockholders' equity.
Auditor Friedman LLP, in New York, said Empire Resorts' ability to
continue as a going concern depends on the Company's ability to
fulfill its obligations with respect to its $65 million of 5-1/2%
senior convertible notes. Friedman also noted of the Company's
continuing net losses and negative cash flows from operating
activities.
EPIX PHARMACEUTICALS: Auction on May 28 for MRI Imaging Agent
-------------------------------------------------------------
Joseph F. Finn, Jr., C.P.A., Assignee for the Benefit of Creditors
of Epix Pharmaceuticals, Inc., disclosed that the MRI imaging
intellectual properties of the EP-2104R MRI imaging agent, which
will be auctioned on May 28, 2010, include potential revenue
sharing from the first commercial sale of non-MRI imaging agents
developed and/or sold by a third party using the same proprietary
technology that resulted in the discovery of peptides that bind
specifically to fibrin.
The assets of Epix were transferred to him on July 20, 2009 and he
is liquidating them for the benefit of Epix creditors. He
recently reached an agreement with Bayer Schering Pharma that
permits the sale of the MRI imaging programs.
EP-2104R is a gadolinium-based MRI thrombus agent with a potential
indication for stroke workup. It is a first-in-class fibrin
binding agent that has completed a Phase 2 proof-of-concept study.
About Joseph F. Finn
Joseph F. Finn, Jr., C.P.A. is the owner of the firm Finn, Warnke
& Gayton, Certified Public Accountants of Wellesley Hills,
Massachusetts. He works primarily in the area of management
consulting for distressed enterprises, bankruptcy accounting and
related matters, such as assignee for the benefit of creditors and
liquidating agent for a corporation. He has been involved in a
number of loan workouts and bankruptcy cases for thirty-five (35)
years. His most recent Assignments for the Benefit of Creditors
in the biotech field include Spherics, Inc., ActivBiotics, Inc.
and Prospect Therapeutics, Inc.
About EPIX Pharmaceuticals
EPIX Pharmaceuticals, Inc., is a biopharmaceutical company focused
on discovering and developing novel therapeutics through the use
of its proprietary and highly efficient in silico drug discovery
platform. The company has a pipeline of internally-discovered
drug candidates currently in clinical development to treat
diseases of the central nervous system -- see
http://www.trialforAD.com/-- and lung conditions. EPIX also has
collaborations with leading organizations, including
GlaxoSmithKline, Amgen and Cystic Fibrosis Foundation
Therapeutics.
* * *
As reported by the Troubled Company Reporter, EPIX on July 20,
2009, entered into an Assignment for the Benefit of Creditors in
accordance with Massachusetts law. The purpose of the Assignment
is to conclude the company's operations and provide for an orderly
liquidation of its assets. The Assignment is a common law
business liquidation mechanism under Massachusetts law that is an
alternative to a formal bankruptcy proceeding. Under the terms of
the Assignment, the Company transferred all of its assets to an
assignee for orderly liquidation and distribution of the proceeds
to the Company's creditors. The designated assignee for the
company is Joseph F. Finn, Jr., at Finn, Warnke & Gayton, 167
Worcester Street, Suite 201, Wellesley Hills, MA 02481.
FAIRPOINT COMMS: Has Claims Objections/Settlement Procedures
------------------------------------------------------------
FairPoint Communications Inc. sought and obtained authority from
the Court to, in addition to grounds set forth under Rule 3007(d)
of the Bankruptcy Code, file omnibus claims objections to claims
seeking reduction, reclassification, disallowance and estimation
of claims based on, but not limited to, one or more of these
additional grounds:
(a) The amount claimed contradicts the Debtors' books and
records;
(b) The Proofs of Claim were incorrectly classified;
(c) The Proofs of Claim seek recovery of amounts for which
the Debtors are not liable;
(d) The Proofs of Claim do not include sufficient
documentation to ascertain their validity;
(e) The Proofs of Claim are subject to estimation under
Section 502(c) of the Bankruptcy Code;
(f) The Proofs of Claim are objectionable under Section 502(d)
of the Bankruptcy Code; or
(g) The Proofs of Claim are objectionable under Section
502(e)(1) of the Bankruptcy Code.
Bankruptcy Rule 307 allows a debtor to file an omnibus objection
to claims that are (i) duplicative; (ii) filed in the wrong case;
(iii) amended by subsequently filed claims; (iv) not timely
filed; (v) have been satisfied by a previous court order; (vi)
presented in a form that does not comply with applicable rules;
(vii) interests, rather than claims; or (vii) assert priority in
an amount that exceed the maximum amount under Section 507 of the
Bankruptcy Code.
Any order sustaining an Omnibus Claims Objection will be a final
order with respect to each claim referenced in that particular
Omnibus Claims Objection.
The Debtors are also authorized to settle claims in accordance
with these procedures:
A. Category 1 Settlements
The Debtors may enter into Category 1 Settlements directly
with the respective claimant without: (i) filing an
objection to the Proof of Claim; (ii) providing notice of
the settlement to any party in interest; (iii) a Court
hearing; or (iv) obtaining Court approval of the
settlement.
Category 1 Settlements include the settlement or compromise
of: (x) any claim that was filed in a face amount not in
excess of $300,000; (y) any claim that will be settled for
an amount not in excess of $100,000; and (z) any claim that
will be disallowed or withdrawn.
B. Category 2 Settlements
The Debtors may resolve any claim that does not fall within
the parameters of the Category 1 Settlements and provides
for an allowed claim in an amount of $5,000,000 or less
under certain notice and objection procedures.
Under the Category 2 Notice Procedures, the Debtors will
provide written notice describing the basic terms of the
proposed settlement to:
(1) Kaye Scholer LLP
425 Park Avenue
New York NY 10022
Attn: Margot B. Schonholtz, Esq. and
Nicholas J. Cremona, Esq.
Attorneys to Bank of America, N.A.
as administrative agent for
the Debtors' prepetition secured lenders
(2) Andrews Kurth LLP
450 Lexington Avenue
New York, NY 10017
Attn: Paul N. Silverstein, Esq. and
Jonathan I. Levine, Esq.
Attorneys to the Committee
(3) The Office of the United States Trustee for Region 2
33 Whitehall Street, 21st Floor
New York, NY 10004
Attn: Andrew D. Velez-Rivera, Esq.
The Category 2 Notice Parties will have five business days
after the notice is sent to object to the proposed
settlement.
If no written objection is received by the Debtors' counsel
and served on the Category 2 Notice Parties prior to the
expiration of the five-day period, or if the Category 2
Notice Parties otherwise consent to the proposed
settlement, the Debtors may enter into the proposed
settlement without need for further Court approval or
notice to any party. If an objection is interposed, then
the Debtors seek that the Court resolve the objection on
the next available omnibus hearing date
C. Category 3 Settlements
Unless otherwise ordered by the Court, the Debtors will
provide notice of any settlements that provide for an
allowed claim in excess of $5,000,000.
The Debtors will serve settlement stipulations allowing
Claims in excess of $5,000,000 on the Master Service List
and file them on the docket of these cases for presentment
on seven calendar days' notice. Objections, if any, that
are not resolved may be presented to the Court for
determination.
D. Other Settlement Motions
Notwithstanding anything in the Settlement Procedures,
the Debtors may file a motion to approve any proposed
settlement under Section 502 of the Bankruptcy Code,
Bankruptcy Rule 9019 and any other applicable provisions of
the Bankruptcy Code or the Bankruptcy Rules.
FAIRPOINT COMMS: Pennsylvania DOR's $5.6-Mil. Claim Expunged
------------------------------------------------------------
At FairPoint Communications' request, the Court expunged
Pennsylvania Department of Revenue's Claim No. 820 in its
entirety.
The Debtors asked the Court to expunge Claim No. 820 filed against
FairPoint Carrier Services, Inc., for $5,616,589.
The Debtors object to the Claim, asserting that:
(i) The Claim has no basis and it does not appear on any of
their books and records; and
(ii) FCS is a wholesale long distance services provider and is
exempt from the taxes asserted in the Claim under the
Pennsylvania Tax Code.
About FairPoint Communications
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)
FAIRPOINT COMMS: Taps KPMG for Accounting Services
--------------------------------------------------
FairPoint Communications Inc. and its units sought and obtained
the Court's permission to employ KPMG LLP to perform fresh start
accounting services for them nunc pro tunc to March 4, 2010.
Lisa R. Hood, senior vice president and corporate controller of
FairPoint Communications, Inc., tells the Court that the Debtors
have selected KPMG for the fresh start accounting services in
light of the firm's diverse experience and extensive knowledge in
the fields of accounting, taxation, and operational controls for
large sophisticated companies both in and out of chapter 11.
According to Ms. Hood, the Debtors have employed KPMG since 1995.
The Debtors believe that by virtue of its prior engagements, KPMG
is familiar with their financial systems and is qualified to
provide accounting and financial advisory services on their
behalf.
KPMG will to provide fresh start accounting services to the
Debtors in connection with their Chapter 11 cases. KPMG is also
expected to adopt and follow the recognition, measurement and
financial reporting requirements of FASB Accounting Standards
Codification Topic 852 and Reorganization.
KPMG will estimate the fair value of the subject assets and
liabilities of the Debtors as of the emergence date yet to be
determined and will advise the Debtors in the course of its
chapter 11 cases, which include accounting advisory and valuation
services:
Accounting Advisory Services
A. Program Management
(1) Project planning including assisting with timeline and
critical path development and tracking;
(2) Assist with the consideration of the alternatives in
approach, timing, order and adoption dates for fresh
start reporting, the alternatives for ongoing efficient
processing of detailed accounting records and the
potential approaches for updating detailed records to
reflect changes in values and the new accounting
requirements subsequent to emergence;
(3) Coordinate and conduct status update meetings with key
management personnel, for all work-streams;
(4) Liaise with the Debtors' advisors and key business
partners, including auditors, attorneys and financial
advisors, throughout course of engagement; and
(5) Provide assistance with research of financial
information, which may be required for the Debtors'
response to third party request related to bankruptcy
filing.
B. Accounting and Financial Reporting
(1) Assist on overall support during reorganization,
including working closely with the Debtors' advisors
through the engagement and coordinating the gathering of
all requests;
(2) Assist with the preparation of financial information
required in the disclosure statement and plan of
reorganization, such as the pro forma balance sheet
reflecting fresh start accounting;
(3) Assist with data gathering necessary to perform
valuation studies, populate financial documents, and
support accounting positions;
(4) Assist with the analysis and documentation for
changes in accounting policies upon adopting fresh start
accounting and provide support during the discussion
with the Debtors' external auditors;
(5) Evaluate the "two conditions" in ASC 852 as required for
adoption of new, fresh start basis;
(6) Research and document issues to support the accounting
and reporting conclusions; and
(7) Assist in the development of an approach to repopulate
detailed records with new fair values and asset lives.
Valuation Services
* Development of an overall plan for review with the Debtors'
addressing KPMG's approach, the type of assets to be valued,
and the valuation methodologies to be used;
* Obtaining detailed financial records and conduct site visits
as necessary, to identify assets and liabilities and apply
sampling techniques to support an extrapolation of values to
the subject population;
* Preparation of fair value estimates for each identified
asset and liability including PPE and intangibles, as well
as debt instruments, preferred stock and derivatives;
* Estimation of economic useful lives for the tangible and
identified intangible assets;
* Estimation of an implied rate of return for FairPoint and
starting point for the discount rates utilized in KPMG's
intangible asset valuation models; and
* Issuance of a valuation report covering the fair value
estimates for each asset and liability for each reporting
unit of the Debtors.
The Debtors will for KPMG's services based on the firm's
customary hourly rates plus reimbursement of its reasonable
necessary expenses incurred for the Debtors' Chapter 11 cases.
KPMG's hourly rates are:
1. Accounting Advisory Services:
Professional Hourly Rate
------------ -----------
Partners $610
Directors/Senior Managers $525
Managers $375
Senior Associates $275
Associates $190
2. Valuation Services
Professional Hourly Rate
------------ -----------
Partners $570
Managing Directors $540
Senior Managers/Directors $500
Managers $400
Senior Associates $260
Associates $200
Daniel T. Gary, CPA, a partner at KPMG LLP, assures the Court
that his firm neither holds nor represents an interest adverse to
the Debtors' estates that would impair its ability to objectively
perform its professional services for the Debtors.
About FairPoint Communications
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)
FINLAY ENTERPRISES: Eisner Resigns as Company's External Auditors
-----------------------------------------------------------------
In a regulatory filing Thursday, Filay Enterprises Inc. disclosed
that Eisner LLP has resigned as the independent registered public
accounting firm of the Company and its wholly owned subsidiary
Finlay Fine Jewelry Corporation. The last audit report that
Eisner issued in relation to the Debtors financial statements
related to the Company's consolidated financial statements for the
fiscal year ended January 31, 2009. Eisner did not issue a
report in relation to the Company's fiscal year ended January 30,
2010, or any interim period after the fiscal year ended
January 31, 2009.
About Finlay Enterprises
Finlay Enterprises, Inc. (OTC Bulletin Board: FNLY) through its
wholly owned subsidiary, Finlay Fine Jewelry Corporation, is a
retailer of fine jewelry operating luxury stand-alone specialty
jewelry stores and licensed fine jewelry departments in department
stores throughout the United States and achieved sales of
$754.3 million in fiscal 2008. The number of locations at the end
of the second quarter ended August 1, 2009, totaled 182, including
67 Bailey Banks & Biddle, 34 Carlyle and four Congress specialty
jewelry stores and 77 licensed departments with The Bon Ton.
The Company and seven affiliates filed for Chapter 11 on August 5,
2009 (Bankr. S. D. N.Y. Case No. 09-14873). Weil, Gotshal &
Manges LLP, serves as bankruptcy counsel. Alvarez & Marsal North
America, LLC, is engaged as restructuring advisor in the Chapter
11 case, and the firm's David Coles is appointed as chief
restructuring officer. Epiq Bankruptcy Solutions, LLC, serves as
claims and notice agent. Judge James Peck presides over the case.
In its bankruptcy petition, Finlay Enterprises disclosed assets of
$331,824,000 against debts of $385,476,000 as of July 4, 2009. As
of the petition date, Finlay owes $38 million outstanding under a
first lien credit agreement, $24.7 million under second lien
notes, $176.6 million outstanding under third lien notes (in
addition to $17.5 million to secured vendors), and $40.6 million
under remaining unsecured obligations under the senior notes.
FIREKEEPERS DEVELOPMENT: S&P Raises Issuer Credit Rating to 'B+'
----------------------------------------------------------------
Standard & Poor's Ratings Services said it raised its issuer
credit rating on Battle Creek, Mich.-based casino operator
FireKeepers Development Authority to 'B+' from 'B'. The rating
outlook is stable. At the same time, S&P raised the issue-level
rating on FDA's $340 million senior secured notes due 2015 to 'B+'
from 'B'.
"The upgrade reflects," said Standard & Poor's credit analyst
Michael Listner, "FDA's strong operating performance (which has
exceeded S&P's initial expectations) since the August 2009 opening
of its gaming facility, good credit measures for the existing
rating, and favorable EBITDA margins relative to competitors
across the industry." These factors are somewhat offset by the
expectation for future competition in the market as well as
uncertainty surrounding FDA's plans for a potential expansion of
the existing facility and the level of distributions that will be
remitted to the tribe once the property has an established history
of operations.
HCA INC: S&P Puts 'B+' Corp. Rating on CreditWatch Positive
-----------------------------------------------------------
Standard & Poor's Ratings Services said it placed its 'B+'
corporate credit rating on hospital giant HCA Inc. and S&P's
ratings on its secured and unsecured debt on CreditWatch with
positive implications.
"The speculative-grade rating on HCA continues to reflect S&P's
view that the largest U.S. owner and operator of acute health care
facilities is particularly sensitive to reduced capacity
utilization and pricing," said Standard & Poor's credit analyst
David Peknay, "by virtue of the significant debt leverage assumed
in its November 2006 leveraged buyout."
"While HCA has a large portfolio of 162 hospitals and 106
ambulatory surgery centers, S&P believes a concentration in
several of its markets highlights both its strength and
vulnerability," continued Mr. Peknay. HCA enjoys relatively
strong negotiating positions with private insurance companies in
these markets, but also is susceptible to regional variations in
demand, particularly in Florida and Texas. S&P believes managed
care price increases, which have been in the 6.0%-6.5% range, will
remain in there in the near term. Still, the ongoing economic
weakness within HCA's regions could magnify a slackening demand
for elective procedures should it occur. Similarly, regional
concentrations could amplify the effects of a national uptrend in
the level of uncompensated care.
"S&P could most likely raise S&P's corporate credit ratings on HCA
to 'BB-' if the IPO is completed and S&P feel that the financial
risk profile improves to aggressive from highly leveraged," said
Mr. Peknay. Alternatively, S&P could affirm the existing 'B+'
corporate credit ratings if S&P feels that the risks such as
reimbursement and a weak economy outweigh HCA's opportunities.
HEALTH NET: S&P Puts 'BB-' Rating on CreditWatch Positive
---------------------------------------------------------
Standard & Poor's Ratings Services said it placed its 'BB-'
counterparty credit rating on Health Net Inc. on CreditWatch with
positive implications.
Health Net's subsidiary, Health Net Federal Services LLC,
currently has a contract with the U.S. Department of Defense for
the TRICARE North Region. On July 15, 2009, Standard & Poor's
lowered its counterparty credit rating on Health Net to 'BB-' from
'BB' following the company's announcement that the contract had
not been renewed. The loss of the contract would effectively
eliminate unregulated cash flows to the holding company and would
reduce financial flexibility. The company challenged the
decision, and on May 5, 2010, the U.S. Department of Defense
notified Health Net that it intends to award the new TRICARE North
Region contract to Health Net Federal Services.
"Although the awarding of the new contract to Health Net Federal
Services ensures continuing unregulated cash flows to the holding
company, these cash flows will be lower under the new contract,"
said Standard & Poor's credit analyst Neal Freedman. "S&P will
review the estimated impact of the new TRICARE contract on Health
Net's consolidated revenues, earnings, and unregulated cash flows
relative to the old contract."
The CreditWatch positive reflects S&P's view that the unregulated
cash flows under the new contract, although reduced, may remain
sufficiently material for us to raise the rating by one notch.
FLEETWOOD ENTERPRISES: "Safe Harbor" Protected DIP Lender
---------------------------------------------------------
WestLaw reports that the "safe harbor" provision in 11 U.S.C. Sec.
364 authorizing the trustee or debtor-in-possession to obtain
postpetition financing and provides that "reversal or modification
on appeal of an authorization under this section to obtain credit
or incur debt, or of a grant under this section of a priority or a
lien, [would] not affect the validity of any debt so incurred, or
any priority or lien so granted, to an entity that extended such
credit in good faith," is not limited in its application solely to
appeals. It had to be construed to prevent the court from
modifying its own interim financing order, pursuant to which it
granted the sole lender willing to provide postpetition financing
to Chapter 11 debtors-in-possession a commitment fee payable on
superpriority basis, in order to disallow this fee after interim
DIP financing was extended. The "safe harbor" provision would
offer little incentive to DIP lenders to lend, and would not
fulfill its intend purpose, if the court adopted the narrow
construction urged by a creditors' committee. In re Fleetwood
Enterprises, Inc., --- B.R. ----, 2010 WL 1568428 (Bankr. C.D.
Cal.).
Based in Riverside, California, Fleetwood Enterprises, Inc., was
the second largest manufactured housing maker in the U.S. and the
largest manufacturer of recreational vehicles over 30 feet in
length.
Fleetwood Enterprises listed assets of $560 million against debt
totaling $624 million in its bankruptcy petition. Fleetwood
Enterprises, together with 19 of affiliates, filed for Chapter 11
protection on March 10, 2009 (Bankr. C.D. Calif. Lead Case No.
09-14254). Craig Millet, Esq., and Solmaz Kraus, Esq., at Gibson,
Dunn & Crutcher LLP, represent the Debtors in their restructuring
efforts. FTI Consulting Inc. is the financial advisor to the
Debtors. The Debtors tapped Greenhill & Co. LLC as its investment
banker.
As reported in the Troubled Company Reporter on Apr. 26, 2010,
Fleetwood Enterprises has filed a Second Amended Joint Plan of
Liquidation and Disclosure Statement, and a confirmation hearing
is scheduled for June 9, 2010. That plan contemplates that
unsecured creditors will recover 10% to 17% of their claims.
FOOD MANAGEMENT: Motion for Reargument Tied Dist. Ct.'s Hands
-------------------------------------------------------------
WestLaw reports that a claimant's motion for reargument, filed
before the claimant's notice of appeal from a bankruptcy court
order sustaining in part the Chapter 11 trustee's objections to
the claimant's proofs of claim, rendered the bankruptcy court's
decision non-final. Therefore, the district court lacked
jurisdiction over the claimant's appeal. In re Food Management
Group, LLC, --- B.R. ----, 2009 WL 6361410 (S.D.N.Y.) (Karas,
J.)/.
Headquartered in Eastchester, New York, Food Management Group,
LLC, managing 24 Dunkin Donuts franchises throughout
Westchester and Bronx Counties, and New York City, along with
four debtor-affiliates, sought chapter 11 protection (Bankr.
S.D.N.Y. Case No. 04-22880) on June 1, 2004, represented by
Jonathan S. Pasternak, Esq., and Joseph Corneau, Esq., at
Rattet, Pasternak & Gordon Oliver, LLP. When the Debtors
filed for protection from their creditors, they estimated
between $1 million to $10 million in debts and assets.
Janice B. Grubin, Esq., serves as the Trustee in the
Debtors' cases, and is represented by Warren T. Pratt, Esq.,
at Drinker, Biddle & Reath, LLP, in Manhattan.
FUNDAMENTAL PROVISIONS: Plan Confirmation Hearing Set for July 9
----------------------------------------------------------------
The Hon. Douglas D. Dodd of the U.S. Bankruptcy Court for the
Middle District of Louisiana will consider the confirmation of
Fundamental Provisions, LLC's Plan of Reorganization on July 9,
2010, at 11:00 a.m. Objections, if any, to the amended Plan are
due on July 1, 2010, at 5:00 p.m.
The Court approved the amended Disclosure Statement filed on
April 26, 2010. The Bankruptcy Court approval of the Debtors'
disclosure statement allows the Debtors to commence the
solicitation of votes for confirmation of their Plan.
The deadline for returning completed ballots is July 7, 2010 at
12:00 noon local time.
As reported in the Troubled Company Reporter on March 24, 2010,
according to the Disclosure Statement, the Plan provides for the
Debtors to retain ownership of and continue to operate 29
restaurants located in Louisiana, Alabama and Florida, and attempt
to sell the store land and equipment in Destin, Florida.
Under the Plan, the Debtor will apply sale proceeds to the secured
debt first. Unless their collateral is sold, secured claims will
be capitalized and paid in full, with interest, in periodic
installments. The unsecured creditors will be paid 100% of their
prepetition claims in 8 quarterly installments. Holders of the
convenience claims will be paid 100% of the prepetition claims.
The existing holders of interests will retain their interest, nut
will not receive any dividends until all creditors are paid in
full under the Plan.
A full-text copy of the amended Disclosure Statement is available
for free at http://bankrupt.com/misc/FundamentalProvisions_DS.pdf
About Fundamental Provisions, LLC
Gonzales, Louisiana-based Fundamental Provisions, LLC -- fdba
Pollo, Inc., et al. -- filed for Chapter 11 bankruptcy protection
on December 8, 2009 (Bankr. M.D. La. Case No. 09-11897).
Fundamental Provision's affiliates -- Pollo, Inc., and Thaxco,
Inc. -- also filed Chapter 11 bankruptcy petitions. Barry W.
Miller, Esq., at Heller, Draper, Hayden, Patrick & Horn, assists
the Debtors in their restructuring efforts. Fundamental
Provisions listed $10,000,001 to $50,000,000 in assets and
$10,000,001 to $50,000,000 in liabilities.
FUNDAMENTAL PROVISIONS: Can Sell Florida Assets for $3 Million
--------------------------------------------------------------
The Hon. Douglas D. Dodd of the U.S. Bankruptcy Court for the
Middle District of Louisiana authorized Fundamental Provisions,
LLC, et al., to sell the Florida Assets to Norsco Management, Inc.
The Debtor will sell:
i) certain real estate, free and clear of all liens, claims,
encumbrances and interests;
ii) furniture, fixtures and equipment subject to any and all
outstanding and valid liens, claims, encumbrances, and
interests; and
iii) consumable merchandise.
Norsco Management agreed to purchase the assets for $3,300,000
plus all interest accrued and all other charges, claims or
liabilities, plus the other consideration. The Debtor said that
50% of the sales price will be applied to the Lynn Haven, Florida
property, and 50% to the Panama City, Florida property.
The Debtor also is authorized to prepay the balance of its
lease/purchase agreement with Leaf Funding concerning certain
surveillance and camera equipment owned by Leaf Funding and leased
to the Debtor. Norsco Management, Inc. will have all the Debtor's
rights, interest and title to said property and rights under the
Leaf Funding lease/purchase agreements.
About Fundamental Provisions
Gonzales, Louisiana-based Fundamental Provisions, LLC -- fdba
Pollo, Inc., et al. -- filed for Chapter 11 bankruptcy protection
on December 8, 2009 (Bankr. M.D. La. Case No. 09-11897).
Fundamental Provision's affiliates -- Pollo, Inc., and Thaxco,
Inc. -- also filed Chapter 11 bankruptcy petitions. Barry W.
Miller, Esq., at Heller, Draper, Hayden, Patrick & Horn, assists
the Debtors in their restructuring efforts. Fundamental
Provisions listed $10,000,001 to $50,000,000 in assets and
$10,000,001 to $50,000,000 in liabilities.
FX LUXURY: Files Chapter 11 Plan of Reorganization
--------------------------------------------------
FX Luxury Las Vegas I, LLC, has filed its Chapter 11 Plan of
Reorganization with the U.S. Bankruptcy Court for the District of
Nevada.
Under the Plan, the Debtor will irrevocably transfer and assign
the acquired assets to LIRA Property Owner, LLC (the New
Borrower), in exchange for New Borrower's entry into the New
Secured Loan. The Acquired Assets will be transferred free and
clear of all liens and claims, but subject to easements,
restrictions, conditions and limitations of record that affected
the title to the Properties as of the Petition Date, any Liens
securing Other Secured Claims that are reinstated or assumed by
New Borrower, and any matters arising after the Petition Date
which have been approved by First Lien Agent and New Borrower.
The New Borrower will be deemed to have assumed any Claim that is
an Administrative Claim, a Priority Tax Claim or a Priority Claim,
and all Other Secured Claims will be reinstated and assumed by New
Borrower.
The Debtor will be dissolved.
On the Effective Date, the Debtor's membership interests will be
cancelled and be of no further force or effect. Following the
cancellation of the interests, the holders of the interests will
have no rights arising from or relating to the interests or the
cancellation thereof.
A copy of the Plan is available for free at:
http://bankrupt.com/misc/FX_LUXURY_plan.pdf
The Administrative Claim will, either: (i) to the extent there are
sufficient available funds, be paid in cash in the allowed amount
of any the claim; or (ii) have the claim assumed by New Borrower,
to be paid by New Borrower in cash in the allowed amount of any
such claim on, or as soon as reasonably practicable after.
The legal and equitable rights of the holders of Priority
Tax Claims are unaltered by this Plan. Each Holder of an Allowed
Priority Tax Claim will either: (i) to the extent there is
sufficient available funds, be paid the allowed amount of the
claim in cash on the Effective Date, (ii) have the claim assumed
by New Borrower, to be paid by New Borrower in cash in the Allowed
amount of any such claim on the date on which such claim is
payable under applicable law or any agreement relating thereto; or
(iii) receive other treatment as is agreed by the Holder of the
Allowed Priority Tax Claim, Debtor, First Lien Lenders and New
Borrower.
With respect to classified claims:
Classification Treatment
-------------- ---------
Class 1: Priority Claims Unimpaired; each holder of the
claim will, either: (i) to the
extent there are sufficient
available funds, be paid the
allowed amount of the claim in cash
on the effective date, (ii) have
the claim assumed by New Borrower,
to be paid by New Borrower in cash
in the allowed amount of any such
claim on the date on which such
claim is payable under applicable
law or any agreement relating
thereto; or (iii) receive such
other treatment as is agreed by the
holder of the allowed priority
Claim, Debtor, First Lien Agent and
New Borrower.
Class 2: Other Secured Claims Unimpaired; holders of the claims
will have the claim reinstated
and/or assumed by New Borrower such
that the claim is rendered
unimpaired, except to the extent
that the holder agrees to less
favorable treatment thereof.
Class 3: First Lien Secured
Claims Impaired; each lender under the
First Lien Credit Agreement will,
in full satisfaction, settlement,
release and exchange for the
allowed First Lien Secured Claims,
receive a Pro Rata Distribution of
Cash in an amount equal to: (a) the
Paydown Amount; plus (b) the
Deposit; plus (c) any unpaid
Lender's Fees through and including
the Effective Date; plus (d) any
Effective Date Cash Distributions
payable to First Lien Lenders. The
New Borrower, First Lien Agent and
First Lien Lenders will execute and
deliver the New Secured Loan
Documents, which will be deemed an
additional Distribution to the
lenders under the First Lien Credit
Agreement, on account of a partial
repayment of the First Lien Secured
Claims against Debtor. Any funds
which were received by the Holders
of Class 3 Claims during the
Chapter 11 Case on account of
adequate protection payments
pursuant to the terms of the
Interim Cash Collateral Order or
the Final Cash Collateral Order
will also be retained by the
holders of the claims as
distributions in further
satisfaction of the claims.
Class 4: General Unsecured
Claims Impaired; holders won't get any
distribution
Class 5: Interests Impaired; holders won't get any
distribution
Only members of Class 3 will be required to vote to reject or
accept this Plan.
About FX Luxury
New York-based FX Luxury Las Vegas I, LLC, fka Metroflag BP, LLC,
owns approximately 17.72 contiguous acres of real property located
at the southeast corner of Las Vegas Boulevard and Harmon Avenue
in Las Vegas, Nevada, which secures its mortgage loans in the
aggregate principal amount of $454 million as of April 21, 2010.
FX Luxury is the remaining Las Vegas subsidiary of FX Real Estate
and Entertainment Inc.
The Company filed for Chapter 11 bankruptcy protection on
April 21, 2010 (Bankr. D. Nev. Case No. 10-17015). Deanna L.
Forbush, Esq., at Fox Rothschild, LLP, assists the Company in its
restructuring effort as the Company's bankruptcy counsel.
Greenberg Traurig, LLP, is the Company's special counsel. Sierra
Consulting Group, LLC, is the Company's financial advisor.
The Company listed $139,636,791 in assets and $492,568,036 in
debts.
FX LUXURY: NexBank Wants Court to End Debtor Exclusivity
--------------------------------------------------------
NexBank SSB and second-lien lenders are pressing a bankruptcy
court to terminate FX Luxury Las Vegas I LLC's exclusive right to
gain support of its reorganization plan so that they can put forth
a rival plan, according to Bankruptcy Law360.
NexBank, which is the collateral agent for second-lien lenders,
and a group of second-lien lenders filed a motion with the U.S.
Bankruptcy Court for the District of Nevada on Wednesday, Law360
relates.
New York-based FX Luxury Las Vegas I, LLC, fka Metroflag BP, LLC,
owns approximately 17.72 contiguous acres of real property located
at the southeast corner of Las Vegas Boulevard and Harmon Avenue
in Las Vegas, Nevada, which secures its mortgage loans in the
aggregate principal amount of $454 million as of April 21, 2010.
FX Luxury is the remaining Las Vegas subsidiary of FX Real Estate
and Entertainment Inc.
The Company filed for Chapter 11 bankruptcy protection on
April 21, 2010 (Bankr. D. Nev. Case No. 10-17015). Deanna L.
Forbush, Esq., at Fox Rothschild, LLP, assists the Company in its
restructuring effort as the Company's bankruptcy counsel.
Greenberg Traurig, LLP, is the Company's special counsel. Sierra
Consulting Group, LLC, is the Company's financial advisor.
The Company listed $139,636,791 in assets and $492,568,036 in
debts.
GENERAL GROWTH: Obtains Court Nod of Brookfield-Led Auction
-----------------------------------------------------------
General Growth Properties, Inc., confirmed that the U.S.
Bankruptcy Court has approved bidding procedures and the issuance
of warrants to serve as compensation for the financial commitments
to be provided pursuant to the revised $6.55 billion equity
investment and $2 billion capital backstop offer from affiliates
of Brookfield Asset Management, Pershing Square Capital Management
and Fairholme Funds. The Company will continue to consider
competitive proposals and expects to select its plan for emergence
from bankruptcy in early July.
"After careful consideration, the Board of Directors agreed that
the revised proposal from this investment group represents the
best initial sponsor proposal to foster a process that maximizes
the enterprise value of GGP," said Adam Metz, Chief Executive
Officer of GGP. "This proposal serves as an insurance policy for
GGP by providing the Company with the capital it requires to
emerge from bankruptcy, while at the same time allowing GGP to
continue soliciting higher and better financing and strategic
offers pursuant to the bid procedures approved by the Bankruptcy
Court."
The Official Committee of General Growth's Equity Committee
supports the revised Brookfield-led proposal and the relief
requested in the motion.
Principal Changes
The principal changes from the recently revised proposal submitted
by the Brookfield-led investors include:
-- Pershing Square has agreed to eliminate its interim warrants
entirely. The remaining warrants to be granted to
Brookfield and Fairholme as part of the transaction will
vest over time as previously announced; and
-- Upon emergence and subsequent to the spin-off of General
Growth Opportunities at a contemplated value of $5.00 per
GGO share, the strike price of the permanent warrants has
been increased to $10.75 per share for Brookfield and
remains at $10.50 per share for Pershing Square and
Fairholme, an increase from the previous $10.00 per share.
"We are pleased that the Court has approved the bidding procedures
and warrants associated with the enhanced investment proposal from
Brookfield, Pershing Square and Fairholme, which we expect will
lead to a process that maximizes value for our stakeholders," said
Thomas H. Nolan, Jr., President and Chief Operating Officer of
GGP. "As majority investors in GGP, Brookfield, Fairholme and
Pershing's interests would be wholly aligned with the Company to
maximize shareholder value. We expect those three parties to
actively work to increase enterprise value, as evidenced by the
exciting strategic relationship agreement in the new Brookfield-
led proposal that will provide General Growth with valuable
corporate opportunities. This proposal provides the best
opportunity to maximize current and future stockholder value
while, at the same time, protecting the Company and its creditors
on the downside."
UBS Investment Bank and Miller Buckfire & Co., LLC served as
financial advisors to General Growth Properties, and Weil, Gotshal
& Manges LLP acted as legal counsel to the company.
About General Growth
Based in Chicago, Illinois, General Growth Properties, Inc. --
http://www.ggp.com/-- is the second-largest U.S. mall owner,
having ownership interest in, or management responsibility for,
more than 200 regional shopping malls in 44 states, as well as
ownership in master planned community developments and commercial
office buildings. The Company's portfolio totals roughly
200 million square feet of retail space and includes more than
24,000 retail stores nationwide. General Growth is a self-
administered and self-managed real estate investment trust. The
Company's common stock is trading in the pink sheets under the
symbol GGWPQ.
General Growth Properties Inc. and its affiliates filed for
Chapter 11 on April 16, 2009 (Bankr. S.D.N.Y., Case No.
09-11977). Marcia L. Goldstein, Esq., Gary T. Holtzer, Esq.,
Adam P. Strochak, Esq., and Stephen A. Youngman, Esq., at Weil,
Gotshal & Manges LLP, have been tapped as bankruptcy counsel.
Kirkland & Ellis LLP is co-counsel. Kurtzman Carson Consultants
LLC has been engaged as claims agent. The Company also hired
AlixPartners LLP as financial advisor and Miller Buckfire Co. LLC,
as investment bankers. The Debtors disclosed $29,557,330,000 in
assets and $27,293,734,000 in debts as of December 31, 2008.
Bankruptcy Creditors' Service, Inc., publishes General Growth
Bankruptcy News. The newsletter tracks the Chapter 11 proceeding
undertaken by General Growth Properties Inc. and its various
affiliates. (http://bankrupt.com/newsstand/or 215/945-7000)
GPX INTERNATIONAL: Court Sets Plan Outline Hearing for June 3
-------------------------------------------------------------
The Hon. Joan N. Feeney of the U.S. Bankruptcy Court for the
District of Massachusetts will consider at a hearing on June 3,
2010, at 11:00 a.m., approval of Disclosure Statement explaining
GPX International Tire Corporation's Plan of Liquidation. The
hearing will be held at 12th Floor, Courtroom 1, J.W. McCormack
Post Office & Court House, 5 Post Office Square, Boston,
Massachusetts. Objections, if any, are due on May 26, 2010, at
4:30 p.m.
The Debtor 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 provides for the
continued orderly liquidation of the Debtor's assets. The
proceeds of the liquidation of the Debtor's assets, net costs of
collection, will be paid to the holders of the allowed claims
against the Debtor.
Upon the confirmation of the Plan, Craig Jalbert will be appointed
as the liquidation supervisor to continue the liquidation of the
assets and to make distributions to creditors.
Holders of secured claims will receive their collateral or the
proceeds of their collateral. The Debtor and the Committee
anticipate that sufficient funds will be available to make
substantial distribution to the holders of allowed general
unsecured claims.
Type of Claim Plan Treatment Projected Recovery
------------- -------------- ------------------
Secured Parties Claim Paid in accordance 53.5%
with Court approved
settlement agreement
Other Secured Claims Paid in full or return 100%
of collateral
Other Priority Claims Paid full in cash 100%
Gen. Unsecured Claims Paid pro rata from 20% to 53.2%
Plan fund
Secured Parties Paid in accordance No recovery
with Court approved
settlement agreement
Equity Interests Payment only if classes No recovery
of senior claims paid in
full.
A full-text copy of Disclosure Statement is available for free at:
http://bankrupt.com/misc/GPXInternational_DS.pdf
About GPX International
GPX International Tire Corporation was one of the largest
independent global providers of specialty "off-the-road" tires for
the agricultural, construction, materials handling and
transportation industries. GPX is a worldwide company,
headquartered in Malden, Massachusetts, with operations in
NorthAmerica, China, Canada, and Germany. A third generation
family-owned business, GPX and its predecessor companies have been
in business since 1922.
GPX International filed for Chapter 11 on Oct. 26, 2009 (Bankr. D.
Mass. Case No. 09-20170). GPX is represented in U.S. Bankruptcy
Court by attorneys Harry Murphy of Hanify & King, P.C., and Peggy
Farrell of Hinckley Allen & Snyder LLP as corporate counsel. TM
Capital Corp. serves as investment banker to GPX in connection
with these transactions and Argus Management Corporation serves as
restructuring advisor to GPX. The petition says assets and debts
range from $100 million to $500 million.
GUIDED THERAPEUTICS: Annual Stockholders' Meeting Set for May 27
----------------------------------------------------------------
The 2010 annual meeting of stockholders of Guided Therapeutics,
Inc., will be held on May 27, 2010 at 10:00 a.m., local time, at
the Company's headquarters, located at 5835 Peachtree Corners
East, Suite D, in Norcross, Georgia, for these purposes:
1. to elect seven directors;
2. to approve and adopt an amendment to the Company's 1995
Stock Plan, as amended, increasing the number of shares
available for grant by 1.8 million shares;
3. to ratify the appointment of UHY LLP as the Company's
independent registered public accounting firm for the 2010
fiscal year; and
4. to transact such other business as may properly come
before the annual meeting or any adjournment of the annual
meeting.
Only stockholders of record at the close of business on March 31,
2010, are entitled to notice of and to vote at the annual meeting.
A full-text copy of the Company's proxy statement is available at
no charge at http://ResearchArchives.com/t/s?61af
About Guided Therapeutics
Norcross, Georgia-based Guided Therapeutics, Inc. (Pink Sheets:
GTHP) is a medical technology company focused on developing
innovative medical devices that have the potential to improve
health care. The Company is currently focused on completing the
development of cervical cancer detection device.
* * *
As reported by the Troubled Company Reporter on March 29, 2010,
UHY LLP of Atlanta, Georgia, expressed substantial doubt about
Guided Therapeutics Inc.'s ability to continue as a going concern
in its audit report on the Company's 2009 annual report. UHY
noted that the Company has recurring losses from operations,
accumulated deficit and working capital deficit.
At December 31, 2009, the Company's balance sheet revealed
$789,000 total assets and $12,764,000 total liabilities for a
$11,975,000 total stockholders' deficit.
HCA INC: Moody's Reviews 'B2' Corporate Family Rating
-----------------------------------------------------
Moody's Investors Service placed the ratings of HCA, Inc.,
including the B2 Corporate Family and Probability of Default
Ratings, under review for possible upgrade. This rating action
follows the announcement that the company has filed a Form S-1 in
contemplation of an initial public offering.
Moody's expects that proceeds to the company from the equity
offering will be used to reduce the company's significant debt
load. Moody's review will focus on the extent of the expected
reduction in leverage, further mitigation of refinancing risk and
recent improvements in operating results, including stronger than
expected free cash flow and EBITDA growth. Moody's believe that
the upgrade of the Corporate Family Rating would likely be limited
to one notch, however, changes to ratings at the instrument level
may be less predictable. Changes in instrument ratings will
depend on the application of Moody's Loss Given Default
Methodology to the resulting capital structure. Therefore,
Moody's review will also consider the size of the offering, the
amount of proceeds used for debt repayment and the class or
classes of debt reduced. Moody's notes that the company is not
required to apply IPO proceeds to the outstanding term loans and
the company's 2014 second lien notes are callable beginning
November 15, 2010.
Ratings placed under review for possible upgrade:
-- $2,000 million ABL Revolver due 2012, Ba2 (LGD2, 12%)
-- $2,000 million Revolving Credit Facility due 2012, Ba3 (LGD3,
32%)
-- Term Loan A due 2012, Ba3 (LGD3, 32%)
-- Term Loan B due 2013, to Ba3 (LGD3, 32%)
-- Euro Term Loan due 2013, Ba3 (LGD2, 23%)
-- 8.5% first lien secured notes due 2019, Ba3 (LGD3, 32%)
-- 7.875% first lien secured notes due 2020, Ba3 (LGD3, 32%)
-- 7.25% first lien secured notes due 2020, Ba3 (LGD3, 32%)
-- 9.125% second lien notes due 2014, B2 (LGD4, 57%)
-- 9.25% second lien notes due 2016, B2 (LGD4, 57%)
-- 9.625% second Lien PIK Notes due 2016, B2 (LGD4, 57%)
-- 9.875% second lien notes due 2017, B2 (LGD4, 57%)
-- Senior unsecured notes (various), Caa1 (LGD6, 90%)
-- Corporate Family Rating, B2
-- Probability of Default Rating, B2
Moody's last rating action was on March 2, 2010, when Moody's
assigned a Ba3 (LGD3, 32%) rating to HCA's first lien senior
secured notes due 2020 and affirmed the existing ratings of the
company.
Headquartered in Nashville, Tennessee, HCA is the nation's largest
acute care hospital company with 162 hospitals and 106
freestanding surgery centers (including eight hospitals and eight
freestanding surgery centers that are accounted for using the
equity method) as of March 31, 2010. For the twelve months ended
March 31, 2010, the company recognized revenue in excess of
$30 billion.
IL LUGANO: Can Sell Condominium Unit and Pay Broker's Fee
---------------------------------------------------------
The Hon. Alan H.W. Shiff of the U.S. Bankruptcy Court for the
District of Connecticut authorized IL Lugano, LLC, to sell its
condominium unit, free and clear of all liens and encumbrances.
The Debtor is also authorized to pay Coldwell Banker (and any co-
broker entitled to share in the commission) a $23,940 broker
commission
Based in Fort Lauderdale, Florida, IL Lugano, LLC is the owner of
a 4-star, boutique-style, luxury condominium-hotel property
located in Fort Lauderdale, Florida, which opened to the public on
January 16, 2008. The Debtor is a wholly owned subsidiary of
SageCrest Vegas LLC, which is a wholly owned subsidiary of
SageCrest II LLC. On August 17, 2008, SageCrest II, LLC and
SageCrest Holdings Limited each filed a voluntary petition for
Chapter 11 protection (Bankr. D. Conn. Lead Case No. 08-50754).
The hotel portion of the property has 105 rooms and the
condominium portion of the property has approximately 23
condominium units. Since the Petition Date, IL Lugano has
completed construction of an upscale Todd English restaurant,
which opened to the public on November 17, 2008, and is expected
to generate substantial additional revenue. The Company filed for
Chapter 11 protection on August 29, 2008 (Bankr. D. Conn. Case No.
08-50811). Douglas J. Buncher, Esq., at Neligan Foley LLP, and
James Berman, Esq., at Zeisler and Zeisler, represent the Debtor
as counsel. When the Debtor filed for protection from its
creditors, it listed assets of between $50 million and
$100 million and debts of between $1 million and $10 million.
IL Lugano filed for bankruptcy to prevent any adverse judgment and
subsequent enforcement actions against IL Lugano in a lawsuit
filed by EPI NCL, LLLC, in the Circuit Court of the 17th Judicial
Circuit of Broward County, Florida, which was set for trial on
September 2, 2008, and to allow adequate time for completion of
the restaurant and sale of the property.
LANDMARK VALLEY: Has Access to Cash Collateral Until July 7
-----------------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of Texas
authorized Landmark Valley Homes, Inc., to continue using the
cash collateral of Inter National Bank until July 7, 2010.
A further hearing on the use of cash collateral will be held on
July 7, at 9:00 a.m., at the Bankruptcy Court, Brownville
Division, 600 East Harrison, 3rd Floor, Brownsville, Texas.
As adequate protection for any diminution in value of the lenders'
collateral, the Debtors will grant the bank replacement lien on
the same priority, validity and extent as prepetition on rents,
equipment and other collateral.
McAllen, Texas-based Landmark Valley Homes, Inc., owns and
operates residential construction/real estate development
business. The Company filed for Chapter 11 bankruptcy protection
on January 4, 2010 (Bankr. S.D. Tex. Case No. 10-70013). John
Kurt Stephen, Esq., at Cardena Whitis and Stephen, assists the
Company in its restructuring effort. The Company has assets of
$34,119,790, and total debts of $19,484,476.
LEAP WIRELESS: To Participate in Jefferies Conference on May 12
---------------------------------------------------------------
Walter Berger, Leap Wireless International, Inc.'s executive vice
president and chief financial officer, will be presenting at the
Jefferies 6th Annual Global Internet, Media and Telecom Conference
to be held at Four Seasons Hotel in New York City. The
presentation is scheduled to take place on May 12, 2010, beginning
at approximately 8:40 a.m. ET.
More information about this event, including a live webcast, may
be accessed by visiting http://investor.leapwireless.com The
webcast replay will be available approximately one hour after the
live webcast ends and will be accessible for a limited period of
time following the conference.
The Troubled Company Reporter on February 2, 2010, citing The Wall
Street Journal's Jeffrey McCracken and Niraj Sheth, said Leap
Wireless has hired Goldman Sachs Group and formed a special board
committee to look into selling the company or merging with rivals.
About Leap Wireless
Headquartered in San Diego, California, Leap Wireless
International, Inc. (NASDAQ: LEAP) -- http://www.leapwireless.com/
-- and its joint ventures provide wireless services in 34 states
and the District of Columbia and hold licenses in 35 of the top 50
U.S. markets. Through its affordable, flat-rate service plans,
Cricket offers customers a choice of unlimited voice, text, high-
speed data and mobile Web services.
Leap spun out from Qualcomm Inc. in 1998 and expanded primarily
into rural markets. It has customers in 34 states and annual
sales around $2.3 billion, making it the seventh-largest wireless
carrier in the U.S., according to The Wall Street Journal.
At December 31, 2009, the Company had total assets of
$5,380,697,000 against total liabilities of total liabilities of
$3,596,896,000 and redeemable noncontrolling interests of
$71,632,000, resulting in stockholder's equity of $1,712,169,000.
* * *
According to the Troubled Company Reporter on April 29, 2009,
Standard & Poor's Ratings Services revised its outlook on Leap
Wireless International Inc. to positive from stable. At the same
time, S&P affirmed its ratings on the San Diego-based wireless
carrier, including the "B-" long-term corporate credit rating and
"B+" secured bank loan rating on subsidiary Cricket Communications
Inc.
LEED CORP: Section 341(a) Meeting Scheduled for June 18
-------------------------------------------------------
The U.S. Trustee for Region 18 will convene a meeting of Leed
Corporation's creditors on June 18, 2010, at 11:00 a.m. The
meeting will be held at 300 N Lincoln, Jerome, ID 83338.
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.
Twin Falls, Idaho-based Leed Corporation (The) -- dba Green Cut
Sprinklers and Landscaping, Leed Corp. Quality Built Homes, Green
Cut Construction, Shoshone Developers, Desert Green Sprinklers &
Landscaping, Green Cut Lawn Care, and Desert Green -- filed for
Chapter 11 bankruptcy protection on April 29, 2010 (Bankr. D.
Idaho Case No. 10-40743). Robert J. Maynes, Esq., who has an
office in Idaho Falls, Idaho, assists the Company in its
restructuring effort. The Company listed $10,000,001 to
$50,000,000 in assets and $1,000,001 to $10,000,000 in debts.
LEED CORP: Taps Robert Maynes as Bankruptcy Counsel
---------------------------------------------------
Leed Corporation has sought permission from the U.S. Bankruptcy
Court for the District of Idaho to employ Robert J. Maynes as
bankruptcy counsel.
Mr. Maynes will, among other things:
a. take the necessary action to avoid liens as required, and
assist the Debtor in performing their other statutory
duties;
b. prepare applications, answers, orders, reports, and any
other legal papers required by the Court;
c. file motions for use of cash collateral and obtain
authority to incur secured debt, when necessary; and
d. assist the Debtor in the preparation of the Disclosure
Statement and Chapter 11 Plan.
Mr. Maynes will be paid $150 per hour for his services.
To the best of the Debtor's knowledge, Mr. Maynes is a
"disinterested person" as that term is defined in Section 101(14)
of the Bankruptcy Code.
Twin Falls, Idaho-based Leed Corporation (The) -- dba Green Cut
Sprinklers and Landscaping, Leed Corp. Quality Built Homes, Green
Cut Construction, Shoshone Developers, Desert Green Sprinklers &
Landscaping, Green Cut Lawn Care, and Desert Green -- filed for
Chapter 11 bankruptcy protection on April 29, 2010 (Bankr. D.
Idaho Case No. 10-40743). Robert J. Maynes, Esq., who has an
office in Idaho Falls, Idaho, assists the Company in its
restructuring effort. The Company listed $10,000,001 to
$50,000,000 in assets and $1,000,001 to $10,000,000 in debts.
LEHMAN BROTHERS: Barclays Exec Knew of Cushion in Lehman Deal
-------------------------------------------------------------
Speaking in a trial over an alleged windfall in the takeover of
Lehman Brothers Holdings Inc.'s core business, a Barclays PLC
executive who oversaw the deal acknowledged that the British firm
knew an asset package it bought for $45 billion could be worth as
much as $52 billion, Bankruptcy Law360 reports. Law360 says Rich
Ricci, who is now co-chief executive of corporate and investment
banking for Barclays Capital, testified as one of the final
witnesses in an initial two-week trial over the deal.
Lehman Brothers Holdings Inc. -- http://www.lehman.com/-- was the
fourth largest investment bank in the United States. For more
than 150 years, Lehman Brothers has been a leader in the global
financial markets by serving the financial needs of corporations,
governmental units, institutional clients and individuals
worldwide.
Lehman Brothers filed for Chapter 11 bankruptcy September 15, 2008
(Bankr. S.D.N.Y. Case No. 08-13555). Lehman's bankruptcy petition
listed US$639 billion in assets and US$613 billion in debts,
effectively making the firm's bankruptcy filing the largest in
U.S. history. Several other affiliates followed thereafter.
The Debtors' bankruptcy cases are handled by Judge James M. Peck.
Harvey R. Miller, Esq., Richard P. Krasnow, Esq., Lori R. Fife,
Esq., Shai Y. Waisman, Esq., and Jacqueline Marcus, Esq., at Weil,
Gotshal & Manges, LLP, in New York, represent Lehman. Epiq
Bankruptcy Solutions serves as claims and noticing agent.
On September 19, 2008, the Honorable Gerard E. Lynch, Judge of the
U.S. District Court for the Southern District of New York, entered
an order commencing liquidation of Lehman Brothers, Inc., pursuant
to the provisions of the Securities Investor Protection Act (Case
No. 08-CIV-8119 (GEL)). James W. Giddens has been appointed as
trustee for the SIPA liquidation of the business of LBI
The Bankruptcy Court has approved Barclays Bank Plc's purchase of
Lehman Brothers' North American investment banking and capital
markets operations and supporting infrastructure for
US$1.75 billion. Nomura Holdings Inc., the largest brokerage
house in Japan, purchased LBHI's operations in Europe for US$2
plus the retention of most of employees. Nomura also
bought Lehman's operations in the Asia Pacific for US$225 million.
International Operations Collapse
Lehman Brothers International (Europe), the principal UK trading
company in the Lehman group, was placed into administration,
together with Lehman Brothers Ltd, LB Holdings PLC and LB UK RE
Holdings Ltd. Tony Lomas, Steven Pearson, Dan Schwarzmann and
Mike Jervis, partners at PricewaterhouseCoopers LLP, have been
appointed as joint administrators to Lehman Brothers International
(Europe) on September 15, 2008. The joint administrators have
been appointed to wind down the business.
Lehman Brothers Japan Inc. and Lehman Brothers Holdings Japan Inc.
filed for bankruptcy in the Tokyo District Court on September 16.
Lehman Brothers Japan Inc. reported about JPY3.4 trillion
(US$33 billion) in liabilities in its petition.
Bankruptcy Creditors' Service, Inc., publishes Lehman Brothers
Bankruptcy News. The newsletter tracks the Chapter 11 proceeding
undertaken by Lehman Brothers Holdings, Inc., and other insolvency
and bankruptcy proceedings undertaken by its affiliates.
(http://bankrupt.com/newsstand/or 215/945-7000)
LIGHTPATH TECHNOLOGIES: Earns $12,052 in Q3 Ended March 31
----------------------------------------------------------
Lightpath Technologies, Inc. filed on May 6, 2010, its quarterly
report on Form 10-Q, showing net income of $12,052 on $2,660,415
of revenue for the three months ended March 31, 2010, compared
with a net loss of $756,175 on $1,656,889 of revenue for the same
period of 2009.
The increase in revenue from the third quarter of the prior fiscal
year was primarily attributable to higher sales volumes of
precision molded optics, isolators and Gradium offset by lower
collimator revenues.
Gross margin percentage in the third quarter of fiscal 2010
compared to third quarter of fiscal 2009 increased to 47% from
25%.
The Company's balance sheet as of March 31, 2010, showed
$6,898,380 in assets, $3,991,310 of liabilities, and $2,907,070 of
stockholders' equity.
The Company reported an operating loss of $119,736 for the nine
months ended March 31, 2010, as well as recurring operating losses
during fiscal years 2009 and 2008 of $2,508,090 and $5,459,497,
respectively. Cash used in operations for the nine months ended
March 31, 2010, was $511,973 and cash used in operations during
fiscal years 2009 and 2008 were $1,467,953 and $3,455,964,
respectively. The Company believes these conditions raise
substantial doubt about its ability to continue as a going
concern.
A full-text copy of the quarterly report is available for free at:
http://researcharchives.com/t/s?61a3
Based in Orlando, Florida, LightPath Technologies, Inc. (NASDAQ:
LPTH) -- http://www.lightpathc.com/ -- manufactures optical
products including precision molded aspheric optics, GRADIUM(R)
glass products, proprietary collimator assemblies, laser
components utilizing proprietary automation technology, higher-
level assemblies and packing solutions.
GENERAL GROWTH: Obtains Court Nod of Brookfield-Led Auction
-----------------------------------------------------------
General Growth Properties, Inc., confirmed that the U.S.
Bankruptcy Court has approved bidding procedures and the issuance
of warrants to serve as compensation for the financial commitments
to be provided pursuant to the revised $6.55 billion equity
investment and $2 billion capital backstop offer from affiliates
of Brookfield Asset Management, Pershing Square Capital Management
and Fairholme Funds. The Company will continue to consider
competitive proposals and expects to select its plan for emergence
from bankruptcy in early July.
"After careful consideration, the Board of Directors agreed that
the revised proposal from this investment group represents the
best initial sponsor proposal to foster a process that maximizes
the enterprise value of GGP," said Adam Metz, Chief Executive
Officer of GGP. "This proposal serves as an insurance policy for
GGP by providing the Company with the capital it requires to
emerge from bankruptcy, while at the same time allowing GGP to
continue soliciting higher and better financing and strategic
offers pursuant to the bid procedures approved by the Bankruptcy
Court."
The Official Committee of General Growth's Equity Committee
supports the revised Brookfield-led proposal and the relief
requested in the motion.
Principal Changes
The principal changes from the recently revised proposal submitted
by the Brookfield-led investors include:
-- Pershing Square has agreed to eliminate its interim warrants
entirely. The remaining warrants to be granted to
Brookfield and Fairholme as part of the transaction will
vest over time as previously announced; and
-- Upon emergence and subsequent to the spin-off of General
Growth Opportunities at a contemplated value of $5.00 per
GGO share, the strike price of the permanent warrants has
been increased to $10.75 per share for Brookfield and
remains at $10.50 per share for Pershing Square and
Fairholme, an increase from the previous $10.00 per share.
"We are pleased that the Court has approved the bidding procedures
and warrants associated with the enhanced investment proposal from
Brookfield, Pershing Square and Fairholme, which we expect will
lead to a process that maximizes value for our stakeholders," said
Thomas H. Nolan, Jr., President and Chief Operating Officer of
GGP. "As majority investors in GGP, Brookfield, Fairholme and
Pershing's interests would be wholly aligned with the Company to
maximize shareholder value. We expect those three parties to
actively work to increase enterprise value, as evidenced by the
exciting strategic relationship agreement in the new Brookfield-
led proposal that will provide General Growth with valuable
corporate opportunities. This proposal provides the best
opportunity to maximize current and future stockholder value
while, at the same time, protecting the Company and its creditors
on the downside."
UBS Investment Bank and Miller Buckfire & Co., LLC served as
financial advisors to General Growth Properties, and Weil, Gotshal
& Manges LLP acted as legal counsel to the company.
About General Growth
Based in Chicago, Illinois, General Growth Properties, Inc. --
http://www.ggp.com/-- is the second-largest U.S. mall owner,
having ownership interest in, or management responsibility for,
more than 200 regional shopping malls in 44 states, as well as
ownership in master planned community developments and commercial
office buildings. The Company's portfolio totals roughly
200 million square feet of retail space and includes more than
24,000 retail stores nationwide. General Growth is a self-
administered and self-managed real estate investment trust. The
Company's common stock is trading in the pink sheets under the
symbol GGWPQ.
General Growth Properties Inc. and its affiliates filed for
Chapter 11 on April 16, 2009 (Bankr. S.D.N.Y., Case No.
09-11977). Marcia L. Goldstein, Esq., Gary T. Holtzer, Esq.,
Adam P. Strochak, Esq., and Stephen A. Youngman, Esq., at Weil,
Gotshal & Manges LLP, have been tapped as bankruptcy counsel.
Kirkland & Ellis LLP is co-counsel. Kurtzman Carson Consultants
LLC has been engaged as claims agent. The Company also hired
AlixPartners LLP as financial advisor and Miller Buckfire Co. LLC,
as investment bankers. The Debtors disclosed $29,557,330,000 in
assets and $27,293,734,000 in debts as of December 31, 2008.
Bankruptcy Creditors' Service, Inc., publishes General Growth
Bankruptcy News. The newsletter tracks the Chapter 11 proceeding
undertaken by General Growth Properties Inc. and its various
affiliates. (http://bankrupt.com/newsstand/or 215/945-7000)
MAGIC BRANDS: Fidelity Newport, American Blue Bid for Fuddruckers
-----------------------------------------------------------------
Magic Brands LLC, the parent of the Fuddruckers and Koo Koo
Roo restaurant brands, is seeking approval to conduct an auction
where it will sell its assets to Tavistock Group for $40 million,
absent higher and better offers. Magic Brands has proposed a
bidding protocol where Tavistock would be the stalking horse
bidder at the auction.
Bill Rochelle at Bloomberg News reports that Fidelity Newport
Holdings LLC and American Blue Ribbon Holdings LLC said in court
filings that they are willing to be the initial bidder at $41
million. In addition, Fidelity and American Blue Ribbon are
willing to be the stalking horse although they won't require any
breakup fees or expense reimbursement if they ultimately lose out
at auction.
About Magic Brands
Magic Brands, LLC, is the parent of the Fuddruckers and Koo Koo
Roo restaurant brands. Fuddruckers -- http://www.fuddruckers.com/
-- was founded in 1980 in San Antonio, Texas, with the goal of
serving hamburgers that are cooked to order and made with fresh
ingredients. Magic Brands, based in Austin, Texas, purchased the
chain in 1998 and has sought to broaden its appeal by expanding
its menu.
Magic Brands, LLC, and its operating units filed for Chapter 11 on
April 21, 2010 (Bankr. D. Del. Lead Case No. 10-11310). It
disclosed assets of up to $10,000,000 and debts of $10,000,001 to
$50,000,000. Affiliate Fuddruckers, Inc., also filed, listing
assets and debts of $50,000,000 to $100,000,000.
FocalPoint Securities, LLC serves as investment banker to Magic
Brands and Goulston & Storrs serves as lead bankruptcy counsel.
Kurtzman Carson Consultants, LLC, serves as claims and notice
agent.
MAMMOTH CORONA: Court Continues Plan Outline Hearing to May 26
--------------------------------------------------------------
The Hon. Robert N. Kwan of the U.S. Bankruptcy Court for the
Northern District of Illinois has continued until May 26, 2010, at
11:00 a.m., the hearing on approval of disclosure statement
explaining Mammoth Corona 1 LLC's proposed Plan of Reorganization.
The hearing will be held at Ronald Reagan Federal Bldg., 411 W
Fourth St. Courtroom 5D, Santa Ana, California.
The Debtor will begin soliciting votes on the Plan following
approval of the adequacy of the information in the Disclosure
Statement.
As reported in the Troubled Company Reporter on March 26, 2010,
according to the amended Disclosure Statement, the Plan seeks to
accomplish payment under the Plan primarily through the cash flow
generated from the leasing of the Mammoth Property and through
proceeds from a future sale or refinance of the Mammoth Property.
In addition there is a $300,000 New Value contribution from the
Interest Holders to cover any shortfalls in payments due under the
plan.
Under the Plan, the Debtor will restructure one note held by U.S.
Bank and converting, mechanics liens to deeds of trust, and
contributing $300,000 in New Value to cover any debt service
shortfalls.
Secured creditors of the estate will be paid the present value of
their claim at a market interest rate over a 42 month period,
excepting that their claims may be paid in full prior to the 42nd
month through a sale or refinance of the Mammoth Property. The
Effective Date of the proposed Plan is June 15, 2010.
The distributions under the Plan will be made from the $300,000
New Value contribution, the potential additional New Value
Contribution to pay any Class 1 deficiency, available cash, cash
flow from operations, refinance proceeds and net sale proceeds.
Holders of general unsecured claim will be paid over 42 months
beginning at $42 per month on 100% of a principal balance of
$26,319 or Class 3 Claimants may elect to receive 50% of their
claim 12 months after the effective date as payment in full.
Interest holders will receive the pro rata share of monies
available after payment to classes 1, 2,and 3 based upon each
Class 4 claimants percentage interest in the Reorganized Debtor,
which will be the same as their percentage interest in the Debtor.
A full-text copy of the Disclosure Statement is available for free
at http://bankrupt.com/misc/MAMMOTHCORONA_AmendedDS.pdf
About Mammoth Corona
Based in San Juan Capistrano, California, Mammoth Corona 1 LLC
filed for Chapter 11 on Oct. 16, 2009 (Bankr. C.D. Calif. Case No.
09-21220). Thomas C. Corcovelos, Esq., represents the Debtor. In
its petition, the Debtor listed both assets and debts between
$10 million and $50 million.
MARKUS KLINKO: Court OKs Deal with All Points on Unpaid Bills
-------------------------------------------------------------
Jacqueline Palank at Dow Jones' Daily Bankruptcy Review reports
that Markus Klinko Photography Inc. and Double Exposure Studios
LLC have won bankruptcy court approval of a deal with creditor All
Points Capital Corp. that ends disputes over unpaid bills.
Ms. Palank notes that All Points had filed nearly $494,000 in
claims against Markus Klinko and Indrani, also known as Julia I.
Pal-Chaudhuri, in their personal bankruptcies as well as the
bankruptcies of their photography firms. Dow Jones says the
settlement reduces All Points' claim to $122,000, none of which
Klinko and Indrani are actually paying themselves. According to
the report, Mr. Klinko's mother Hedwig will cover $102,000, while
the remaining $20,000 will be covered by their fashion stylist pal
-- and reality show castmate -- GK Reid. Indrani had paid $22,000
toward All Points' claims last year; that money will now be made
available to her creditors and those of her photography studio,
Double Exposure.
According to Dow Jones, the photographers heralded the deal as
resolving "a substantial hurdle" to their reorganization.
About Double Exposure
Julia Pal-Chaudhuri is a New York-based celebrity photographer who
owns Double Exposure Studio. She and Markus Klinko were formerly
a romantic couple and remain business partners. The two have
photographed A-listers like Will Smith and Beyonce and shot work
for major clients including Nike and Vogue.
Julia Pal-Chaudhuri's Double Exposure Studio LLC filed for Chapter
11 bankruptcy protection in August 2009 before the U.S. Bankruptcy
Court for the Southern District of New York, blaming it on
recession. Double Exposure listed less than $50,000 in assets and
$100,000 to $500,000 in debts, which include unpaid taxes, Photo
District News reported.
About Markus Klinko
Markus Klinko is a celebrity photographer. He and fellow
photographer Julia Pal-Chaudhuri were formerly a romantic couple
and remain business partners. They have photographed A-listers
like Will Smith and Beyonce and shot work for major clients
including Nike and Vogue.
Markus Klinko filed for Chapter 11 bankruptcy protection in August
2009 in the U.S. Bankruptcy Court for the Southern District of New
York. Mr. Klinko, according to Photo District News, said that his
photography business has $1 million to $10 million in liabilities
and less than $50,000 in assets.
MBD INC: Bankruptcy Court Confirms Plan of Reorganization
---------------------------------------------------------
The U.S. Bankruptcy Court for the Eastern District of California
confirmed MBD, Inc.'s Amended Plan of Reorganization.
According to the Disclosure Statement, MBD intends to meet its
obligations under the Plan by continuing its development of the
Belvedere Heights Subdivision. The Company will also continue
managing the La Dolce Piazza office/retail buildings. MBD has
agreed to transfer the other properties -- the Montebello Estates,
the Cielo Vista Estates, and the Fleetwood Property -- to Umpqua
Bank in satisfaction of its claims secured by those properties.
General unsecured creditors who are owed $1,580,000 will be paid
in full, with interest at 5% p.a., through quarterly payments
starting in October 2010. Payments will equal 50% of MBD's net
operating cash flow for each calendar quarter preceding the
payment date in which MBD generates a positive cash flow. The
Plan also provides that payment will be made, first to the
unsecured trade creditors (Class B-1 under the Plan), then once
all trade creditors are paid in full, payments will begin on the
same schedule to the unsecured lenders (Class B-2) under the Plan.
With the exception of AICCO, Inc.'s insurance premium financing
claim under Class A-8, Butte County's secured property tax claims
on the Fleetwood and Cielo Vista properties under Class A-10,
Tehema County's property tax claim on the Montebello Estates under
Class A-11 and Shareholder Interests under Class C, all other
classes are impaired and are entitled to vote on the Plan.
A full-text copy of the disclosure statement explaining the Plan
is available for free at:
http://bankrupt.com/misc/MBD.DSforamendedplan.pdf
A full-text copy of the Amended Chapter 11 plan is available for
free at http://bankrupt.com/misc/MBDInc_AmendedChapter11Plan.pdf
About MBD, Inc.
Chico, California-based MBD, Inc., a.k.a. Meghdadi Builder
Developer, has been in the development business in the Chico area
for over 17 years. The Debtor filed for Chapter 11 protection on
October 6, 2008 (Bankr. E.D. Calif. Case No. 08-34347). William
C. Lewis, Esq., who has an office in Palo Alto, California,
represents the Debtor in its restructuring efforts. The Company
listed between $10 million to $50 million each in assets and
debts.
MCGRATH'S PUBLICK: Can Sell 2002 GMC Denali to Randy Willet
-----------------------------------------------------------
The Hon. Frank R. Alley of the U.S. Bankruptcy Court for the
District of Oregon authorized McGrath's Publick Fish House, Inc.,
to sell 2002 GMC Denali to Randy Willet for $4,000, payable in
cash, free and clear of all liens and encumbrances.
Salem, Oregon-based McGrath's Publick Fish House, Inc., fdba
McGrath's Properties LLC, filed for Chapter 11 bankruptcy
protection on February 3, 2010 (Bankr. D. Ore. Case No. 10-60500).
Leon Simson, Esq., who has an office in Portland, Oregon, 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.
MERIDIAN RESOURCE: CEO Paul Ching Receives $562,500 in 2009 Pay
---------------------------------------------------------------
The Meridian Resource Corporation disclosed in a regulatory filing
that it paid Paul D. Ching, its CEO, President and Chairman of the
Board of Directors, $562,500 in total compensation for 2009. Mr.
Ching was paid $178,350 in 2008. In January 2010, Mr. Ching was
awarded a $500,000 cash bonus for performance during 2009.
Lloyd V. DeLano, the Company's Sr. Vice President, CAO and
Secretary, received $602,226 in 2009 pay from $914,449 in 2008.
Alan S. Pennington, the VP for Business Development, was paid
$581,366 for 2009 from $845,545 for 2008.
A. Dale Breaux, VP Operations, was paid $503,394 for 2009 from
$619,468 for 2008.
VP Steven G. Ives received $385,331 for 2009 from $422,367 for
2008.
As reported by the Troubled Company Reporter on April 23, 2010,
Meridian and certain of its subsidiaries entered into a Twelfth
Amendment to Forbearance and Amendment Agreement, dated as of
April 15, 2010, with Fortis Capital Corp., as administrative agent
to the lenders. The Twelfth Forbearance Amendment, among other
things, extended to May 7, 2010, from April 15, 2010 the date on
which the Fortis Forbearance Agreement will terminate if the
Company has not then received shareholder approval for the
proposed merger with Alta Mesa Holdings, LP.
On April 7, 2010, Meridian Resource, Alta Mesa Holdings, and Alta
Mesa Acquisition Sub LLC entered into the First Amendment to
Agreement and Plan of Merger. Alta Mesa raised its offer price
for the outstanding common stock of Meridian to $0.33 per share
from $0.29 per share in cash, a 14% increase over its prior offer
price and a 23% premium over the closing price of Meridian stock
on April 7, 2010. The merger agreement was not amended in any
other respect.
The special meeting has been extended a couple of times.
Under the Twelfth Forbearance Amendment, the Company was required
to pay its Lenders an amendment fee of approximately $207,500.
The Twelfth Forbearance Amendment also accelerates by six days the
due date for the scheduled May 2010 principal payment required by
the Fortis Forbearance Agreement.
The members of the lending consortium are:
* Fortis Capital Corp., as Administrative Agent, Co-Lead
Arranger, Bookrunner, Issuing Lender, and a Lender;
* The Bank of Nova Scotia, as Co-Lead Arranger, Syndication
Agent, and a Lender;
* Comerica Bank;
* U.S. Bank National Association; and
* Allied Irish Banks plc
A full-text copy of the Twelfth Forbearance Amendment is available
at no charge at http://ResearchArchives.com/t/s?6079
A full-text copy of the First Amendment to the Merger Agreement is
available at no charge at http://ResearchArchives.com/t/s?607a
Meridian has hired bankruptcy counsel to prepare for a possible
bankruptcy filing in the event its planned merger with Alta Mesa
Holdings, LP is not consummated.
About Meridian Resource
Based in Houston, Texas, The Meridian Resource Corporation
(NYSE:TMR) -- http://www.tmrc.com/-- is an independent oil and
natural gas company engaged in the exploration, exploitation,
acquisition and development of oil and natural gas in Louisiana,
Texas, and the Gulf of Mexico. Meridian has access to an
extensive inventory of seismic data and, among independent
producers, is a leader in using 3-D seismic and other technologies
to analyze prospects, define risk, target and complete high-
potential wells for exploration and development. Meridian has a
field office in Weeks Island, Louisiana.
MOLECULAR INSIGHT: Posts $17.5 Million Net Loss for Q1 2010
-----------------------------------------------------------
Molecular Insight Pharmaceuticals, Inc., filed on May 6, 2010, its
quarterly report on Form 10-Q, showing a net loss of $17.5 million
on $594,788 of revenue for the three months ended March 31, 2010,
compared with a net loss of $15.3 million on $211,859 of revenue
for the same period of 2009.
Operating expenses increased 23.6% to $12.9 million in the first
quarter 2010 from the first quarter 2009, due to increases in
research and development expenses of $1.4 million and in general
and administrative expenses of $995,504.
The Company's balance sheet as of March 31, 2010, showed
$60.8 million in assets and $188.2 million of debts, for a
stockholders' deficit of $127.4 million.
The Company has received an extension of a waiver by the Bond
holders under its waiver agreement executed on March 15, 2010,
with the holders of at least a majority of the its Senior Secured
Floating Rate Bonds due 2012 and the Bond Indenture trustee, the
original term of which expired on April 15, 2010. The waiver has
been extended until May 17, 2010. Under the terms of the waiver
agreement and the related amendment, the Bond holders and Bond
Indenture trustee agreed to waive the noncompliance arising from
the inclusion of the "going concern" paragraph in the report of
the independent registered public accounting firm on the Company's
financial statements as of and for the year ended December 31,
2009, and other technical defaults under the Bond Indenture.
As reported in the Troubled Company Reporter on March 17, 2010,
Deloitte & Touche LLP expressed substantial doubt about the
Company's ability to continue as a going concern. The independent
auditors noted of the Company's difficulties in meeting its bond
indenture covenants and its recurring losses from operations.
A full-text copy of the quarterly report is available for free at:
http://researcharchives.com/t/s?61a4
Cambridge, Mass.-based Molecular Insight Pharmaceuticals, Inc.
(NASDAQ: MIPI) -- http://www.molecularinsight.com/-- is a
clinical-stage biopharmaceutical company that is focused on the
discovery and development of targeted therapeutic and imaging
radiopharmaceuticals for use in oncology.
MPG GATEWAY: U.S. Trustee Unable to Form Creditors Committee
------------------------------------------------------------
The Office of the U.S. Trustee for Region 21 notified the U.S.
Bankruptcy Court for the Middle District of Florida that until
further notice, it will not appoint an official committee of
unsecured creditors in the Chapter 11 case of MPG Gateway Ltd.
The U.S. Trustee said that there were insufficient indications of
willingness from the unsecured creditors to serve in the
committee.
MPG Gateway Ltd. filed for Chapter 11 protection in the U.S.
Bankruptcy Court in Tampa, Florida (Bankr. M.D. Fla. Case No.
10-08075). Safety Harbor, Florida-based MPG Gateway listed assets
and debts ranging from $10 million to $50,000.
NATHAN REUTER: Bitten By Business Partner's Fraud
-------------------------------------------------
WestLaw reports that the fraudulent conduct of an individual
Chapter 11 debtor's business partner in connection with an
allegedly risk-free investment opportunity offered by their
company could be imputed to the debtor, the allegedly innocent
partner, for purpose of excepting the resulting debt from
discharge on a "false pretenses, false representation, or actual
fraud" theory. There were numerous red flags which should have
alerted the debtor, a sophisticated businessman who had himself
lost $175,000 in another investment opportunity touted by partner,
to the possibility of the partner's fraud. Nonetheless, the
debtor chose to ignore these warning signs and to tout the safety
and legitimacy of the investment opportunity to potential
investors without investigating whether there was a basis in fact
for his representations. The court also found that the debtor's
reckless indifference supported fraud-based nondischargeability
claims against him directly, without imputing his partner's fraud.
In re Reuter, --- B.R. ----, 2010 WL 1543715 (Bankr. W.D. Mo.).
Nathan Paul Reuter sought Chapter 11 protection (Bankr. W.D. Mo.
Case No. 07-21128) on July 27, 2007; is represented by James F. B.
Daniels, Esq., at McDowell Rice Smith & Buchanan, P.C.; and
estimated less than $1 million in assets and more than $1 million
in debts at the time of the filing.
NEWARK GROUP: Soliciting Votes for Prepackaged Chapter 11 Plan
--------------------------------------------------------------
The Newark Group, Inc. has reached an agreement with its primary
creditor constituencies to significantly reduce debt and
restructure the Company's balance sheet and has begun a
solicitation of votes for its prepackaged chapter 11 plan of
reorganization. A majority of the members of each impaired
creditor class has already committed to vote in favor of the
prepackaged plan.
The Company announced that it reached an agreement with a group of
note holders representing more than three quarters of its
outstanding 9.75% unsecured senior subordinated notes (the
"Notes") that would eliminate approximately $200 million of the
Company's unsecured debt upon the effective date of the
Prepackaged Plan. This debt reduction would reduce annual cash
interest costs by approximately $13 million and provide the
Company with the financial flexibility to focus on growth and
profitability. In exchange for canceling the Notes, the holders
of the Notes will receive 96.5% of the equity of the Company upon
the effective date of the Prepackaged Plan. Agreement was reached
with the Company's lead revolving loan lender to continue to
provide financing to the Company under a new $50 million debtor in
possession revolving loan facility and a $70 million exit
revolver. The Company has also arranged for a new, larger $110
million term loan facility with a group led by ORIX Finance. This
will be used to pay off the existing term loan, and pay down the
existing revolver balance.
"We are pleased to have the support of our note holders and
lenders as we move forward to strengthen our balance sheet and
position the Company for profitability," said Robert Mullen,
President and Chief Executive Officer of The Newark Group. "As we
navigate this process, we will continue to focus on customers,
servicing them better than anyone else and developing product
solutions to address their most difficult issues," continued
Mullen.
Votes on the Prepackaged Plan must be received by Kurtzman Carson
Consultants, LLC, the Company's voting agent, by June 1, 2010,
unless the deadline is extended. The record date for voting was
set for May 4, 2010. Solicitation materials have been mailed to
all parties entitled to vote on the Prepackaged Plan. Upon
receipt of sufficient votes from those entitled to vote, the
Company intends to commence a Chapter 11 proceeding and schedule a
hearing to confirm the Prepackaged Plan to take place within
forty-five (45) days thereafter. None of the Company's non-US
subsidiaries or affiliates will be included in the filing.
Throughout the solicitation process, trade creditors, suppliers
and employees will continue to receive amounts owed to them in the
ordinary course of business. In addition, the Prepackaged Plan
provides, among other things, that subject to approval of the
Bankruptcy Court, the claims of trade creditors, suppliers and
employees will be paid in full in the ordinary course of business.
During the Chapter 11 case, the Company will continue normal
operations under current management and does not anticipate any
changes to its overall business or its ability to produce quality
products.
About the Newark Group
With headquarters in Cranford, New Jersey, The Newark Group, Inc.
manufactures and sells recycled paperboard and paperboard
products. The company operates in three segments: Paperboard,
Converted Products and International.
POWER EFFICIENCY: Annual Stockholders' Meeting Set for May 21
-------------------------------------------------------------
The 2010 Annual Meeting of stockholders of Power Efficiency
Corporation will be held at our principal office at 3960 Howard
Hughes Parkway, Suite 460, in Las Vegas, Nevada, on May 21, 2010,
at 11:00 a.m. Pacific Daylight Time, for these purposes:
-- To elect seven directors for terms expiring at the
Company's next annual stockholders' meeting;
-- To ratify the selection of BDO Seidman, LLP as independent
registered public accounting firm for the fiscal year
ending December 31, 2010;
-- To approve the amendment of the Company's articles of
incorporation to increase the total number of authorized
shares of common stock from 140,000,000 shares to
350,000,000 shares; and
-- To act upon any other business that may properly come
before the Annual Meeting or any adjournments thereof.
The Board of Directors has fixed the close of business on April 9,
2010, as the record date for determining the stockholders entitled
to notice of, and to vote at, the Annual Meeting or any
adjournments thereof.
A full-text copy of the Company's proxy statement is available at
no charge at http://ResearchArchives.com/t/s?61ae
Las Vegas, Nev.-based Power Efficiency Corporation (OTC BB: PEFF)
-- http://www.powerefficiency.com/-- is a clean technology
company focused on efficiency technologies for electric motors.
On February 18, 2010, Power Efficiency signed a global supply
agreement with one of the largest manufacturers and service
providers of elevators and escalators. The OEM tested and
evaluated the Company's product for over a year. The OEM intends
to include the Company's products as one of the standard motor
control options for new escalators and to offer it as an energy
efficiency retrofit upgrade for existing escalators. The OEM
produces thousands of new escalators per year out of factories in
Europe and Asia and has service contracts for tens of thousands of
escalators throughout the world.
The Company's balance sheet as of December 31, 2009, showed
$2.8 million in assets, $2.0 million of debts, and $801,642 of
stockholders' equity.
Sobel & Co., LLC, in Livingston, N.J., expressed substantial doubt
about the Company's ability to continue as a going concern. The
independent auditors noted that the Company has suffered recurring
losses from operations, and the Company has experienced a
deficiency of cash from operations.
LEAP WIRELESS: To Participate in Jefferies Conference on May 12
---------------------------------------------------------------
Walter Berger, Leap Wireless International, Inc.'s executive vice
president and chief financial officer, will be presenting at the
Jefferies 6th Annual Global Internet, Media and Telecom Conference
to be held at Four Seasons Hotel in New York City. The
presentation is scheduled to take place on May 12, 2010, beginning
at approximately 8:40 a.m. ET.
More information about this event, including a live webcast, may
be accessed by visiting http://investor.leapwireless.com The
webcast replay will be available approximately one hour after the
live webcast ends and will be accessible for a limited period of
time following the conference.
The Troubled Company Reporter on February 2, 2010, citing The Wall
Street Journal's Jeffrey McCracken and Niraj Sheth, said Leap
Wireless has hired Goldman Sachs Group and formed a special board
committee to look into selling the company or merging with rivals.
About Leap Wireless
Headquartered in San Diego, California, Leap Wireless
International, Inc. (NASDAQ: LEAP) -- http://www.leapwireless.com/
-- and its joint ventures provide wireless services in 34 states
and the District of Columbia and hold licenses in 35 of the top 50
U.S. markets. Through its affordable, flat-rate service plans,
Cricket offers customers a choice of unlimited voice, text, high-
speed data and mobile Web services.
Leap spun out from Qualcomm Inc. in 1998 and expanded primarily
into rural markets. It has customers in 34 states and annual
sales around $2.3 billion, making it the seventh-largest wireless
carrier in the U.S., according to The Wall Street Journal.
At December 31, 2009, the Company had total assets of
$5,380,697,000 against total liabilities of total liabilities of
$3,596,896,000 and redeemable noncontrolling interests of
$71,632,000, resulting in stockholder's equity of $1,712,169,000.
* * *
According to the Troubled Company Reporter on April 29, 2009,
Standard & Poor's Ratings Services revised its outlook on Leap
Wireless International Inc. to positive from stable. At the same
time, S&P affirmed its ratings on the San Diego-based wireless
carrier, including the "B-" long-term corporate credit rating and
"B+" secured bank loan rating on subsidiary Cricket Communications
Inc.
PROTECTION ONE: CEO to Receive $2.6MM Severance if Merger Closes
----------------------------------------------------------------
Protection One, Inc., disclosed in a regulatory filing that
assuming that the proposed merger deal is completed on June 2,
2010, the Company's officers stand to receive millions of dollars
in severance.
On February 22, 2010, the Company entered into amended and
restated employment agreements with Richard Ginsburg, its
President and Chief Executive Officer; Darius G. Nevin, its
Executive Vice President and Chief Financial Officer; and Peter
Pefanis, its Executive Vice President and Chief Operating Officer.
The amendments were intended to provide for continuity of
management in the context of a potential change of control of the
Company. Upon completion of the Offer and Merger, a change of
control will have occurred and the Company's Shares will cease to
be traded on an established national stock exchange, which will
permit Messrs. Ginsburg, Nevin and Pefanis to terminate their
employment with the Company for "good reason" and entitle them to
the severance benefits. Qualifying terminations of Mr. Ginsburg's
employment and Mr. Nevin's employment are expected to occur
shortly after completion of the Offer and Merger.
According to the filing, Mr. Ginsburg will receive $2,602,410.11,
Mr. Nevin $1,717,599.15; and Ms. Pefanis $1,558,065.33. They will
also continue to participate for three years in the Company's
medical, dental and life insurance plans, estimated to be
approximately $45,000 to $60,000 (including tax gross-ups) for
each executive based on current insurance premiums.
Other officers to receive severance are:
J. Eric Griffin $678,503.97
Vice President, General Counsel
and Secretary,
E. Andy Devin, Treasurer and $499,742.25
Vice President of Finance,
Tony Wilson, President of $742,606.19
Security Monitoring
Services, Inc. (d/b/a CMS)
Joseph Sanchez, Senior Vice $589,357.42
President Customer Operations
They will receive continued participation for two years in the
Company's medical, dental and life insurance plans, estimated to
be approximately $30,000 to $40,000 (including a tax gross-up) for
each executive based on current insurance premiums.
Merger Deal
As reported by the Troubled Company Reporter on April 29, 2010,
Protection One has entered into a definitive agreement to be
acquired by affiliates of GTCR, a private equity firm that manages
more than $8 billion in equity capital.
Protection Acquisition Sub, Inc., has agreed to commence a tender
offer to acquire all of POI's outstanding shares of Common Stock,
for $15.50 per share to the seller in cash, net of applicable
withholdings and without interest.
Affiliates of Quadrangle Group LLC and Monarch Capital Partners,
which together own over 60% of the fully diluted shares of
Protection One, have each executed a tender and support agreement
pursuant to which they have agreed to validly tender their shares
in the tender offer.
A full-text copy of the Tender Offer Statement is available at no
charge at http://ResearchArchives.com/t/s?61ab
A full-text copy of the Offer to Purchase, dated May 3, 2010, is
available at no charge at http://ResearchArchives.com/t/s?61ac
A full-text copy of the Form of Letter of Transmittal is available
at no charge at http://ResearchArchives.com/t/s?61ad
Protection One's financial advisor in the transaction is J.P.
Morgan Securities Inc. and its legal advisor is Kirkland & Ellis
LLP. Lazard Freres & Co. LLC advised Protection One's board of
directors and its independent transactions committee with respect
to the fairness of the offer price to be paid in the transaction.
Morgan Keegan & Company, Inc. and Barclays Capital served as M&A
advisors and Barnes Associates served as an industry advisor to
GTCR. Latham & Watkins LLP and Skadden, Arps, Slate, Meagher &
Flom LLP provided GTCR legal counsel.
About GTCR
Founded in 1980, GTCR -- http://www.gtcr.com/-- is a private
equity firm focused on investing in growth companies in the
Financial Services & Technology, Healthcare and Information
Services & Technology industries. The Chicago-based firm
pioneered the "Leaders Strategy" -- finding and partnering with
world-class leaders as the critical first step in identifying,
acquiring and building market-leading companies through
acquisitions and organic growth. Since its inception, GTCR has
invested more than $8.0 billion in over 200 companies.
About Protection One
Protection One, Inc. -- http://www.ProtectionOne.com/-- is
principally engaged in the business of providing security alarm
monitoring services, including sales, installation and related
servicing of security alarm systems for residential and business
customers. The Company also provides monitoring and support
services to independent security alarm dealers on a wholesale
basis. Affiliates of Quadrangle Group LLC and Monarch Alternative
Capital LP own roughly 70% of the Company's common stock.
On March 24, 2010, Protection One filed its annual report on Form
10-K for the year ended December 31, 2009, showing $571.9 million
in assets and $631.0 million of debts, for a stockholders' deficit
of $59.1 million.
PROTECTION ONE: CEO Ginsburg Receives $896,295 for 2009 Pay
-----------------------------------------------------------
Protection One, Inc., disclosed in a regulatory filing that Chief
Executive Officer Richard Ginsburg received $896,295 in total
compensation for 2009, which included $88,493 in cash bonuses.
Mr. Ginsburg was paid $686,254 for 2008, which included $83,835 in
cash bonuses.
Darius G. Nevin, POI's Chief Financial Officer, was paid $629,013
for 2009, from $500,114 for 2008.
Peter Pefanis, POI's Executive VP Operations, received $548,283 in
2009 pay from $421,699 in 2008.
Tony Wilson, President of CMS, was paid $390,178 for 2009 work
from $337,057 for 2008.
J. Eric Griffin, VP and General Counsel, was paid $352,117 for
2009 from $286,791 for 2008.
About Protection One
Protection One, Inc. -- http://www.ProtectionOne.com/-- is
principally engaged in the business of providing security alarm
monitoring services, including sales, installation and related
servicing of security alarm systems for residential and business
customers. The Company also provides monitoring and support
services to independent security alarm dealers on a wholesale
basis. Affiliates of Quadrangle Group LLC and Monarch Alternative
Capital LP own roughly 70% of the Company's common stock.
On March 24, 2010, Protection One filed its annual report on Form
10-K for the year ended December 31, 2009, showing $571.9 million
in assets and $631.0 million of debts, for a stockholders' deficit
of $59.1 million.
REGAL CINEMAS: Fitch Assigns 'B+/RR4' Rating on $250 Mil. Notes
---------------------------------------------------------------
Fitch Ratings has assigned a 'B+/RR4' rating to Regal Cinemas
Corporation proposed $250 million note offering. The new notes
will be issued out of the existing senior unsecured indenture
dated July 15, 2009. Proceeds of the notes, together with
proceeds from the new senior secured credit facility (which is
expected to close concurrently with the note offering), are
expected to be used to repay the current senior secured credit
facility, repurchase the $52 million balance on Regal Cinemas
subordinated notes, pays fees related to the financing
transactions and for general corporate purposes, which may include
the repayment or repurchase of other indebtedness. Regal Cinemas
is an indirectly wholly owned subsidiary of Regal Entertainment
Group (Regal). These are rating actions taken by Fitch:
Regal
-- Issuer Default Rating affirmed at 'B+';
-- Senior unsecured convertible notes upgraded to 'B-/RR6' from
'CCC/RR6'.
Regal Cinemas
-- IDR affirmed at 'B+';
-- Senior secured credit facility affirmed at 'BB+/RR1';
-- Senior unsecured notes affirmed at 'B+/RR4';
-- Senior subordinated notes rating of 'B-/RR6' withdrawn;
The Rating Outlook is Stable.
The new senior secured credit facility will move the maturity of
the term loan from October 2013 to November 2016, extending the
majority of Regal's debt balance. The term loan will continue to
amortize quarterly, in an aggregate annual amount equal to 1% of
the original term loan ($1.25 billion). The revolver component of
the facility is expected to mature in May 2015, extending the
current maturity of October 2011, and is expected to have
commitments totaling $85 million. In addition, the new credit
facility provides, on an uncommitted basis, for the potential of
$200 million in additional term loan borrowings.
Fitch views the extension of the maturities as a positive to the
credit, providing an improvement in the company's near-term
maturity schedule. Fitch expects the security package to be
consistent with the current security package in place. The new
credit facility will also be guaranteed by the same subsidiaries
that guarantee the current credit facility and the senior
unsecured notes.
Fitch expects up to $185 million in incremental cash may be left
on the balance sheet after the subordinated notes are repurchased
and the old credit facility is repaid. Fitch notes that this
additional cash may be used to finance a portion of Regal's
$200 million in convertible notes due March 2011, fund future
acquisitions and/or shareholder-friendly actions.
As of March 31, 2010, liquidity (not reflecting the announced
transactions) was made up of $321.6 million in cash and
$92.3 million in credit facility availability, under the company's
$95 million credit facility. Last 12-month ended March 31, 2010
free cash flow was approximately $187 million. Fitch expects FCF
for 2010 to be in the range of $140 million?$165 million. Other
than the convertible notes due in March 2011, the company's next
meaningful maturity would be November 2016, when the proposed term
loans mature. Regal has no pension obligations.
Total debt as of March 31, 2010, was approximately $2 billion, and
unadjusted gross leverage was 3.8 times. Fitch expects gross
leverage to remain above 3x and does not expect significant debt
reduction in the near term.
Regal's Recovery Ratings reflect Fitch's expectation that the
enterprise value of the company and, hence, recovery rates for its
creditors, will be maximized in a restructuring scenario (as a
going concern) rather than a liquidation. Fitch estimates an
adjusted, distressed enterprise valuation of $1.8 billion, using a
5x multiple and including an estimate for Regal's 25% stake in
National CineMedia, LLC, of approximately $175 million. Based on
this enterprise valuation, overall recovery for total debt is
approximately 88% (before any administrative claims).
The 'RR1' recovery rating for the company's credit facilities
reflects Fitch's belief that 91%?100% expected recovery is
reasonable. While Fitch does not assign Recovery Ratings for the
company's operating lease obligations, it is assumed the company
rejects only 30% of its remaining $3.9 billion in operating lease
commitments due to their significance to the operations in a
going-concern scenario and is liable for 15% of those rejected
values (at a net present value). The 'RR4' recovery ratings for
Regal Cinemas' senior unsecured notes (equal in ranking to the
rejected operating leases) reflect an expectation that recovery
will be low in the 31%-50% range.
The upgraded ratings on Regal's convertible notes ('B-/RR6'; two
notches from Regal's IDR) reflect the notes new position in the
capital structure after the repayment of Regal Cinemas
subordinated notes and Fitch's expectation for zero recovery.
Assuming all else is equal, in the event that Regal Cinemas
reissues subordinated debt or Regal issues debt senior to the
convertible notes, the ratings on the convertible notes would
likely be downgraded one notch (for a total of three notches from
Regals' IDR), reflecting its subordinated position in the capital
structure.
RENAISSANT LAFAYETTE: Wants Plan Filing Extended Until June 21
--------------------------------------------------------------
Renaissant Lafayette, Inc., asks the U.S. Bankruptcy Court for the
Eastern District of Wisconsin to extend its exclusive periods to
file and solicit acceptances for the proposed Chapter 11 Plan
until June 21, 2010, and August 20, 2010, respectively.
The Debtor filed their request for an extension before the
exclusive periods was set to expire on April 22.
The Debtor propose as hearing on the extension of its exclusive
period on May 17, at 3:00 p.m. at Courtroom No. 149, U.S.
Bankruptcy Court, 517 East Wisconsin Avenue, Milwaukee, Wisconsin,
before the Hon. Pamela Pepper. Objections, if any, are due on
May 14 at 3:00 p.m. (prevailing Central time.)
Oak Brook, Illinois-based Renaissant Lafayette LLC is the owner of
a 280-unit luxury condominium development in Milwaukee named Park
Lafayette. The project is at the intersection of North Prospect
Avenue and Lafayette Place in Milwaukee. So far, 39 units were
sold.
The Company filed for Chapter 11 bankruptcy protection on December
23, 2009 (Bankr. E.D. Wis. Case No. 09-38166). Forrest B.
Lammiman, Esq., at Meltzer, Purtill & Stelle LLC, assists the
Company in its restructuring effort. The Company listed
$50,000,001 to $100,000,000 in assets and $100,000,001 to
$500,000,000 in liabilities.
RENAISSANT LAFAYETTE: Has Until May 17 to Use Amalgamated Cash
--------------------------------------------------------------
The Hon. Pamela Pepper of the U.S. Bankruptcy Court for the
Eastern District of Wisconsin, in a fifth interim order,
authorized Renaissant Lafayette, LLC, to secure additional
postpetition financing from Amalgamated Bank.
Amalgamated Bank is the Trustee of Longview Ultra Construction
Loan Investment Fund fka Longview Ultra 1 Construction Loan
Investment Fund.
The lender agreed to extend the loan until May 17, 2010. The loan
will bear interest at 12.5% per annum.
The Debtor is also authorized to access cash from rental income or
assessments from owners.
As adequate protection for any diminution in value of the lenders'
collateral, the Debtors will grant the lender the same
superpriority status and other protections.
About Renaissant Lafayette LLC
Oak Brook, Illinois-based Renaissant Lafayette LLC is the owner of
a 280-unit luxury condominium development in Milwaukee named Park
Lafayette. The project is at the intersection of North Prospect
Avenue and Lafayette Place in Milwaukee. So far, 39 units were
sold.
The Company filed for Chapter 11 bankruptcy protection on December
23, 2009 (Bankr. E.D. Wis. Case No. 09-38166). Forrest B.
Lammiman, Esq., at Meltzer, Purtill & Stelle LLC, assists the
Company in its restructuring effort. The Company listed
$50,000,001 to $100,000,000 in assets and $100,000,001 to
$500,000,000 in liabilities.
SALANDER-O'REILLY: Furnishings Bring $472,000 at Auction
--------------------------------------------------------
Bill Rochelle at Bloomberg News reports that an auction of the
household furnishings belonging to Lawrence Salander, the
proprietor of Salander-O'Reilly Galleries LLC, brought $472,000.
About Salander-O'Reilly
Established in 1976, New York-based Salander-O'Reilly Galleries
LLC -- http://www.salander.com/-- exhibited and managed fine art
from renaissance to contemporary. On Nov. 1, 2007, three
creditors filed an involuntary chapter 7 petition against the
gallery (Bankr. S.D.N.Y. Case Number 07-13476). The petitioners,
Carol F. Cohen of Two Swans Farm, Cavallon Family LP, and Richard
Ellenberg, disclosed total claims of more than $5 million. Amos
Alter, Esq., at Troutman Sanders LLP and John Koegel, Esq., at The
Koegel Group LLP represent the petitioners.
On Nov. 9, 2007, the Debtor's case was converted to a chapter 11
proceeding (Bankr. S.D.N.Y. Case No. 07-30005). Alan D. Halperin,
Esq., at Halperin Battaglia Raicht, LLP, represents the gallery.
Salander-O'Reilly Galleries was owned by Lawrence B. Salander and
his wife, Julie D. Salander, of Millbrook, New York. The couple
also had membership interests in galleries including non-debtor
entities, Renaissance Art Investors and Salander Decorative Arts
LLC. The couple filed for chapter 11 protection on Nov. 2, 2007
(Bankr. S.D.N.Y. Case No. 07-36735). Douglas E. Spelfogel, Esq.,
and Richard J. Bernard, Esq. at Baker & Hostetler LLP and Susan P.
Persichilli, Esq., at Buchanan Ingersoll PC represent the Debtors
in their restructuring efforts. When they filed for bankruptcy,
Mr. and Mrs. Salander listed assets and debts between $50 million
and $100 million.
Prior to bankruptcy, Mr. Salander resigned as Salander-O'Reilly
Galleries' manager and turned over the control to Triax Capital
Advisors LLC, an independent turnaround firm. The U.S. Bankruptcy
Judge in Poughkeepsie, New York, converted the Chapter 11 case of
Salander and his wife to a liquidation in Chapter 7 in May 2008,
automatically bringing the appointment of a trustee.
SAINT VINCENTS: Proposes Grant Thornton as Crisis Managers
----------------------------------------------------------
St. Vincents Catholic Medical Centers and its units seek the
Court's authority to employ Grant Thornton LLP to provide crisis
management services and employ Mark E. Toney as chief
restructuring officer and Steven R. Korf as chief
financial officer, nunc pro tunc to the Petition Date.
The Debtors relate that they need specialized advice from
professionals with experience in dealing with distressed
healthcare facilities to assist their wind down efforts. The
Debtors have selected Grant Thornton because of its wealth of
experience in providing advisory services to healthcare
organizations.
Retention of Mr. Toney as CRO
Mr. Toney, National Managing Principal of Grant Thornton's
Corporate Advisory and Restructuring Services Practice, is well
suited to serve as CRO for the Debtors, says Alfred E. Smith, IV,
chairman of Saint Vincents Catholic Medical Centers of New York.
Mr. Toney specializes in providing operations, corporate planning,
and restructuring services to clients in a number of different
industries, with particular expertise in the healthcare industry.
Prior to joining Grant Thornton, Mr. Toney was a Managing Director
at AlixPartners, LLC, as well as a partner at
PricewaterhouseCoopers LLP, serving as National Healthcare
Practice Leader for its Business Recovery Services group. He was
also a principal in a consulting firm and vice president in a
boutique investment banking firm. He has served as Plan Manager
and Crisis Manager for hospitals, PPM's, HMO's, PPO's, as well as
other healthcare-related entities. His responsibilities have
included operational reorganizations, financial restructuring,
transaction management for mergers, acquisitions and divestitures,
turnarounds, loan workouts, and Chapter 11 bankruptcy proceedings.
Most of Mr. Toney's engagements have involved large and middle
market companies in healthcare, retail, food processing, and
manufacturing, Mr. Smith says.
Retention of Mr. Korf as CFO
Mr. Korf, a Partner of Grant Thornton's Corporate Advisory and
Restructuring Services Practice, is well suited to serve as CFO
for the Debtors, Mr. Smith asserts. Prior to joining Grant
Thornton, Mr. Korf was a Managing Director at a national
consulting firm and spent 20 years in private industry in various
senior management positions. He has represented debtors and
creditors of both public and private companies in identifying
solutions to various complex operational and financial issues,
frequently in crisis situations.
Services provided by Mr. Korf have included evaluating business
plans, negotiating capital structures, developing reorganization
plans and valuing business enterprises. He has also negotiated
numerous acquisitions and divestitures and has consistently proven
his ability to enhance profitability in both growth and
restructuring environments. Mr. Korf has also advised public and
private companies in identifying solutions to various complex
operational and financial issues, frequently in crisis situations.
Prepetition Services
Since late January 2010, Mr. Toney, Mr. Korf, and the other Grant
Thornton professionals have been providing the Debtors with crisis
management services. In his capacity as CRO, Mr. Toney has
supervised a team of professionals who have been critical in the
Debtors efforts to address their deteriorating financial condition
and to assess all potential options in connection with the
Hospital's long-term viability including identifying a new sponsor
to keep the Hospital open and marketing the Debtors' non-Hospital
businesses for sale as going concerns.
The Debtors relate that during the months prior to the Petition
Date, Grant Thornton assisted them in securing additional
financing from New York State and the Medical Centers' secured
lenders, implementing certain cost reductions, and assisting them
in marketing their on-going non-Hospital businesses for sale as
going concerns.
Services to be Provided
As CRO, Mr. Toney will hold overall responsibility for the
operation and eventual sale or wind-down of the Debtors. He will
also be responsible for leading the Debtors in their evaluation
and implementation of strategic and tactical options throughout
the wind-down process.
As CFO, Mr. Korf will manage the Debtors' overall financial,
reporting and treasury functions. In addition, Messrs. Toney and
Korf, along with Grant Thornton crisis management services
professionals will:
(a) coordinate and provide administrative support for the
Debtors' Chapter 11 cases and develop the Debtors' plan
of reorganization or liquidation or other appropriate case
resolution, if necessary;
(b) lead negotiations with the Debtors' stakeholders and
their representatives;
(c) negotiate and regularly communicate with the Debtors'
lenders;
(d) manage the Debtors' financial and treasury functions;
(e) provide leadership to the financial function including,
without limitation, assist the Debtors in (i)
strengthening the core competencies in the finance
organization, particularly cash management, planning,
general accounting, financial reporting, and information
management, and (ii) formulation and negotiation with
respect to the Chapter 11 cases;
(f) assist with the preparation of the Schedules of Assets
and Liabilities, the Statements of Financial Affairs, and
other regular reports required by the Court or which are
customarily issued by the Debtors' Chief Financial
Officer;
(g) lead negotiations with potential acquirers of the Debtors'
assets;
(h) manage the "working group" professionals who are assisting
the Debtors in the Chapter 11 process or who are working
for the Debtors' various stakeholders to improve
coordination of their effort and individual work product
to be consistent with the Debtors' overall goals;
(i) identify and implement both short-term and long-term
liquidity-generating initiatives and wind-down plans;
(j) develop and implement cash management strategies, tactics
and processes; work with the Debtors' treasury department
and other professionals and coordinating the activities of
the representatives of other constituencies in the cash
management process;
(k) leading the Debtors' management in implementing the
Debtors' revised business and wind-down plan and other
related forecasts as may be required by bank lenders in
connection with ongoing negotiations or as may be required
by the Debtors for other business or corporate purposes;
(l) manage the claims and claims reconciliation processes as
well as provide assistance in those areas as testimony
before the Bankruptcy Court on matters that are within
Grant Thornton's areas of expertise;
(m) assist the Debtors with electronic data collection; and
(n) assist with other related matters as may be requested by
the Board or the Restructuring Committee, which fall
within Grant Thornton's experience.
Compensation
(a) Retainer. A retainer of $750,000 to be applied against
future monthly and hourly fees and expenses. The Retainer
will be applied to any remaining prepetition fees and
expenses.
(b) Monthly and Hourly Fees. Grant Thornton charges a monthly
fixed fee of $125,000 for the services of Mr. Toney as CRO
and a monthly fixed fee of $125,000 for the services of Mr.
Korf as CFO. Grant Thornton charges these hourly rates for
the hours worked for the services of its other Temporary
Staff. These hourly rates will be billed in increments of
half hours and Grant Thornton will agree to file a
supplemental affidavit disclosing any increase in rate with
the Court and will serve the same upon the Committee and the
U.S. Trustee's Office.
Professional Hourly Rate
------------ -----------
Partners/Principals $635 - $695
Directors $525 - $610
Managers $410 - $465
Associates/Senior Associates $250 - $360
Paraprofessionals $175
Administrative Assistants $50
A list of the Temporary Staff Grant Thornton intends to use in
connection with the services being provided to the Debtors is
available for free at:
http://bankrupt.com/misc/Vincents_GrantTemporary.pdf
(c) Expenses. The Debtors will pay directly, or reimburse Grant
Thornton upon receipt of periodic billings, for all
reasonable out-of-pocket expenses incurred in connection
with this assignment, like travel, meals and lodging. Grant
Thornton will be entitled to reimbursement of expenses
incurred in connection with the purchase of insurance to
cover the Temporary Staff to the extent permitted by the
Retention Agreement.
Notwithstanding the appointment of a CRO, the Board will retain
ultimate authority and responsibility regarding the powers,
duties, and responsibilities vested in the Debtors by applicable
law and regulations.
The Debtors will exculpate Grant Thornton, Mr. Toney, and Mr. Korf
for certain losses suffered in connection with performance of
services under the Retention Agreement, except for those arising
from their breach of fiduciary duty, gross negligence, willful
misconduct or fraud.
Grant Thornton will provide services to the Debtors as an
independent contractor, and does not have any express or implied
authority to assume or create any obligation or responsibility on
behalf of or in the name of the Debtors.
The Debtors relate that prior to the Petition Date, they have paid
Grant Thornton $4,472,834 in fees and expenses.
Mark E. Toney, national managing principal of the Corporate
Advisory and Restructuring Services practice of Grant Thornton
LLP, assures the Court that neither he, nor Grant Thornton, nor
any of its principals, employees, agents or affiliates, holds nor
represents any interest materially adverse to the Debtors or their
estates in matters for which it is proposed to be retained.
About Saint Vincents Catholic Medical Centers
St. Vincents Catholic Medical Centers returned to bankruptcy court
by filing another Chapter 11 petition April 14, 2010, in New York
(Bankr. S.D.N.Y. Case No. 10-11963). The new petition listed
assets of $348 million against debt totaling $1.09 billion.
Adam C. Rogoff, Esq., and Kenneth H. Eckstein, Esq., at Kramer
Levin Naftalis & Frankel LLP, represent the Debtor in its Chapter
11 effort.
Although the hospitals emerged from the prior reorganization in
July 2007 with a Chapter 11 plan said to have a "a realistic
chance" of paying all creditors in full, the bankruptcy left the
medical center with more than $1 billion in debt. The new filing
occurred after a $64 million operating loss in 2009 and the last
potential buyer terminated discussions for taking over the
flagship hospital.
Saint Vincents Catholic Medical Centers -- http://www.svcmc.org/-
- is anchored by St. Vincent's Hospital Manhattan, an academic
medical center located in Greenwich Village and the only emergency
room on the Westside of Manhattan from Midtown to Tribeca, St.
Vincent's Westchester, a behavioral health hospital in Westchester
County, and continuing care services that include two skilled
nursing facilities in Brooklyn, another on Staten Island, a
hospice, and a home health agency serving the Metropolitan New
York area.
Saint Vincent Catholic Medical Centers of New York and six of its
affiliates first filed for Chapter 11 protection on July 5, 2005
(Bankr. S.D.N.Y. Case No. 05-14945 through 05-14951).
SAINT VINCENTS: Wants to Hire Garfunkel as Special Counsel
----------------------------------------------------------
Pursuant to Section 327(e) of the Bankruptcy Code, St. Vincents
Catholic Medical Centers and its units seek the Court's authority
to employ Garfunkel Wild, P.C., as their special healthcare,
regulatory, corporate, real estate, litigation and finance counsel
to the Debtors nunc pro tunc to the Petition Date.
The Debtors tell the Court that Garfunkel Wild served as their
general counsel for almost eight years, including the time spent
as special counsel during the last bankruptcy, performing a
breadth of legal services relating to their businesses and
financial affairs, with the exception of providing legal services
related to labor law and malpractice issues. The Debtors maintain
that as a result of those engagements, Garfunkel Wild is
thoroughly versed in the details of the many complex financial
arrangements that they have entered into and understands the
current status of their standing with each of the agencies
exercising jurisdiction over their affairs.
Robert A. Wild, Esq., Judy Eisen, Esq., and Burton S. Weston,
Esq., members of Garfunkel Wild, who have had primary
responsibility for the Debtors' prepetition representation, will
continue to oversee Garfunkel Wild's involvement as special
healthcare, regulatory, corporate, real estate, litigation and
finance counsel. They will be assisted by Andrew Blustein, Esq.,
Christina Van Vort, Esq., Andrew Schulson, Esq., Sean Leyden,
Esq., B. Scott Higgins, Esq., Afsheen Shah, Esq., and Andrew
Zwerling, Esq., attorneys in Garfunkel Wild's healthcare, finance,
real estate, reorganization and litigation practices. Each of
these attorneys has previously been involved in Garfunkel Wild's
representation of the Debtors' businesses and financial affairs.
The Debtors relate that during the 90 days before the Petition
Date, they made payments to Garfunkel Wild aggregating $1,571,923
for services rendered and costs incurred.
The Debtors note that Garfunkel Wild received a $175,000 retainer,
and any open time related to the Chapter 11 filing as of the
Petition Date will be applied against that retainer amount.
As their special healthcare, regulatory, corporate, real estate,
litigation and finance counsel, the Debtors seek Garfunkel Wild
to, inter alia:
(a) assist them in negotiating and documenting arrangements
and agreements with their lenders, suppliers and other
parties relating to general corporate, healthcare, real
estate, finance and other non-bankruptcy related matters;
(b) provide regulatory advice and consult with the Debtors on
healthcare and other non-bankruptcy related matters;
(c) assist in the preparation and prosecution of non-
bankruptcy administrative and litigation matters relative
to the Debtors' businesses;
(d) provide continuing legal advice in connection with health
care, regulatory, corporate, finance and other non-
bankruptcy related issues;
(e) assist in providing non-bankruptcy, real estate, corporate
and commercial assistance as may relate to the sale, lease
or other disposition of assets of the estates; and
(f) perform other non-bankruptcy related legal services and
assistance desirable and necessary to the efficient and
economic administration of the Debtors' estates.
It is anticipated that Garfunkel Wild's compensation, fees and
expenses will be based on its normal hourly rates in effect for
the period in which services are rendered, discounted by 10%.
Garfunkel Wild's non-discounted hourly rates at present for
professionals who will work on this matter range from:
Professional Rate/Hour
------------ ---------
Partner $340-$495
Associates $220-$300
Paralegals $150-$175
The attorneys who will primarily work on this matter and their
respective billing rates are:
Attorney Rate/Hour
-------- ---------
Robert A. Wild $495
Judith Eisen $495
Burton S. Weston $495
Andrew Blustein $470
Christina VanVort $405
Sean P. Leyden $380
Scott B. Higgins $340
Afsheen A. Shah $300
Andrew L. Zwerling $410
The Debtors propose to reimburse Garfunkel Wild for the expenses
it incurred including telephone and telecopier charges,
photocopying charges, travel expenses, and non-ordinary expenses.
Burton S. Weston, Esq., a shareholder of Garfunkel Wild, P.C. --
bweston@garfunkelwild.com -- assures the Court that his firm does
not represent or hold any interest that is adverse to the estate
with respect to the matters with which it will be employed, as
defined by Section 327(e).
About Saint Vincents Catholic Medical Centers
St. Vincents Catholic Medical Centers returned to bankruptcy court
by filing another Chapter 11 petition April 14, 2010, in New York
(Bankr. S.D.N.Y. Case No. 10-11963). The new petition listed
assets of $348 million against debt totaling $1.09 billion.
Adam C. Rogoff, Esq., and Kenneth H. Eckstein, Esq., at Kramer
Levin Naftalis & Frankel LLP, represent the Debtor in its Chapter
11 effort.
Although the hospitals emerged from the prior reorganization in
July 2007 with a Chapter 11 plan said to have a "a realistic
chance" of paying all creditors in full, the bankruptcy left the
medical center with more than $1 billion in debt. The new filing
occurred after a $64 million operating loss in 2009 and the last
potential buyer terminated discussions for taking over the
flagship hospital.
Saint Vincents Catholic Medical Centers -- http://www.svcmc.org/-
- is anchored by St. Vincent's Hospital Manhattan, an academic
medical center located in Greenwich Village and the only emergency
room on the Westside of Manhattan from Midtown to Tribeca, St.
Vincent's Westchester, a behavioral health hospital in Westchester
County, and continuing care services that include two skilled
nursing facilities in Brooklyn, another on Staten Island, a
hospice, and a home health agency serving the Metropolitan New
York area.
Saint Vincent Catholic Medical Centers of New York and six of its
affiliates first filed for Chapter 11 protection on July 5, 2005
(Bankr. S.D.N.Y. Case No. 05-14945 through 05-14951).
SAINT VINCENTS: Wants to Hire Putney as Labor Counsel
-----------------------------------------------------
St. Vincents Catholic Medical Centers and its units seek the
Court's authority to employ Putney, Twombly, Hall & Hirson LLP as
their special labor and employee benefits counsel nunc pro tunc to
the Petition Date.
The Debtors tell the Court that Putney Twombly has previously
represented them on a number of different labor and pension law-
related matters. The Debtors maintain that Putney Twombly has
become familiar with the complex labor, employee benefit, and
pension issues that have arisen and are likely to continue to
arise over the course of their Chapter 11 cases.
As special labor and employee benefits counsel, Putney Twombly
will:
(a) provide legal advice and representation on issues that may
arise during the Debtors' Chapter 11 cases relating to
federal labor law, including, without limitation,
representation of the Debtors on issues relating to labor
relations, collective bargaining agreements, and
arbitrations stemming from discharges and contract
interpretation;
(b) provide legal advice and representation to the Debtors on
their continuing pension-related and other employee
benefit obligations; and
(c) provide other labor, employee benefit, and pension law-
related advice and representation as may be requested by
the Debtors.
In the course of the firm's engagement, Putney Twombly will also
prepare on the Debtors' behalf any necessary motions, complaints,
answers, declarations, orders, counterclaims, affidavits, reports
and other legal papers relating to matters within the scope of the
Engagement, and may appear before the Court, to the extent
required, to protect the Debtors'
interests in those matters.
The Debtors propose to pay Putney Twombly's professionals based on
their current hourly rates:
Professional Rate/Hour
------------ ---------
Daniel F. Murphy, Jr. $470
Judith M. Bandler $460
Joseph B. Cartafalsa $455
Randi B. Feldheim $255
Matthew M. Riordan $310
Shaina J. Schallop $250
The Debtors also propose to reimburse Putney Twombly for all
expenses it incurred including telephone, telecopier toll charges,
photocopying charges, travel expenses, and non-ordinary course
overhead expenses.
The Debtors relate that prior to the Petition Date, they have paid
Putney Twombly $244,018 in fees and $1,278 in expenses for
prepetition services rendered.
Daniel F. Murphy, Jr., Esq., at Putney, Twombly, Hall & Hirson
LLP, in New York, -- dmurphy@putneylaw.com -- assures the Court
that his firm is a disinterested person and does not represent or
hold an interest adverse to the Debtors or their estates.
About Saint Vincents Catholic Medical Centers
St. Vincents Catholic Medical Centers returned to bankruptcy court
by filing another Chapter 11 petition April 14, 2010, in New York
(Bankr. S.D.N.Y. Case No. 10-11963). The new petition listed
assets of $348 million against debt totaling $1.09 billion.
Adam C. Rogoff, Esq., and Kenneth H. Eckstein, Esq., at Kramer
Levin Naftalis & Frankel LLP, represent the Debtor in its Chapter
11 effort.
Although the hospitals emerged from the prior reorganization in
July 2007 with a Chapter 11 plan said to have a "a realistic
chance" of paying all creditors in full, the bankruptcy left the
medical center with more than $1 billion in debt. The new filing
occurred after a $64 million operating loss in 2009 and the last
potential buyer terminated discussions for taking over the
flagship hospital.
Saint Vincents Catholic Medical Centers -- http://www.svcmc.org/-
- is anchored by St. Vincent's Hospital Manhattan, an academic
medical center located in Greenwich Village and the only emergency
room on the Westside of Manhattan from Midtown to Tribeca, St.
Vincent's Westchester, a behavioral health hospital in Westchester
County, and continuing care services that include two skilled
nursing facilities in Brooklyn, another on Staten Island, a
hospice, and a home health agency serving the Metropolitan New
York area.
Saint Vincent Catholic Medical Centers of New York and six of its
affiliates first filed for Chapter 11 protection on July 5, 2005
(Bankr. S.D.N.Y. Case No. 05-14945 through 05-14951).
SCHWAB INDUSTRIES: Cash Collateral Use Subject to Sale of Assets
----------------------------------------------------------------
The Hon. Russ Kendig of the U.S. Bankruptcy Court for the Northern
District of Ohio authorized, on a final basis, authorized Schwab
Industries, Inc., et al., to use the cash collateral of KeyBank
National Bank, as agent, The Huntington National Bank, and Bank of
America, N.A., until June 21, 2010.
As of the petition date, the Debtors were indebted to the
prepetition lenders approximately $7,000,000, plus interest, fees
and costs.
The Debtors would use the cash collateral to fund their business
postpetition.
The prepetition lenders consented to the Debtors' limited use of
the cash collateral subject to postpetition security interest,
liens, and superpriority administrative expense claims as adequate
protection for use of their cash collateral.
The Debtors' cash collateral use is also subject to the sale of
all or substantially all of their assets before June 2, 2010.
About Schwab Industries, Inc.
Dover, Ohio-based Schwab Industries, Inc., produces, supplies and
distributes ready-mix concrete, concrete block, cement and related
supplies to commercial, governmental and residential contractors
throughout Northeast Ohio and Southwest Florida.
The Company filed for Chapter 11 bankruptcy protection on
February 28, 2010 (Bankr. N.D. Ohio Case No. 10-60702). The
Company estimated its assets and liabilities at $50,000,001 to
$100,000,000.
SCHWAB INDUSTRIES: Files Schedules of Assets and Liabilities
------------------------------------------------------------
Schwab Industries, Inc., filed with the U.S. Bankruptcy Court for
the Northern District of Ohio its schedules of assets and
liabilities, disclosing:
Name of Schedule Assets Liabilities
---------------- ----------- -----------
A. Real Property $2,780,000
B. Personal Property [$66,843,740]
C. Property Claimed as
Exempt
D. Creditors Holding
Secured Claims $56,940,251
E. Creditors Holding
Unsecured Priority
Claims $370,524
F. Creditors Holding
Unsecured Non-priority
Claims $5,246,211
----------- -----------
TOTAL $69,623,740 $62,556,986
Dover, Ohio-based Schwab Industries, Inc., produces, supplies and
distributes ready-mix concrete, concrete block, cement and related
supplies to commercial, governmental and residential contractors
throughout Northeast Ohio and Southwest Florida.
The Company filed for Chapter 11 bankruptcy protection on
February 28, 2010 (Bankr. N.D. Ohio Case No. 10-60702). The
Company estimated its assets and liabilities at $50,000,001 to
$100,000,000.
SEA LAUNCH: Obtains $30-Mil. DIP Financing from Energia Overseas
----------------------------------------------------------------
Gerald P. Buccino, Chairman and CEO disclosed that Sea Launch
Company, LLC has obtained a $30 million DIP facility from Energia
Overseas Limited.
Christopher L. Picone, a Managing Director in the firm's Chicago
office and Chief Restructuring Officer for Sea Launch assisted the
Company in the transaction.
The new DIP financing agreement with EOL, which received interim
approval from the U.S. Bankruptcy Court in Delaware on April 27,
provides additional funding to Sea Launch, totaling $30 million.
Part of the proceeds of this facility will be used to repay all
outstanding DIP loans to date, amounting to approximately $19
million. The remaining balance of this facility will be used to
fund ongoing operations at Sea Launch through confirmation of its
Plan of Reorganization.
The new arrangement is also expected to position Sea Launch for
exit financing, as the Company prepares for its successful
emergence from the Chapter 11 bankruptcy proceedings. The DIP
financing transaction closed on April 30.
About Sea Launch
Sea Launch Company, L.L.C., is a satellite-launch services
provider that offers commercial space launch capabilities from the
Baikonur Space Center in Kazakhstan. Its owners include Boeing
Co., RSC Energia, and Aker ASA.
Sea Launch filed for Chapter 11 on June 22, 2009 (Bankr. D. Del.
Case No. 09-12153). Joel A. Waite, Esq., and Kenneth J. Enos,
Esq., at Young, Conaway, Stargatt & Taylor LLP, in Wilmington,
Delaware, serve as the Debtor's counsel. At the time of the
filing, the Company said its assets range from US$100 million to
US$500 million and debts are at least US$1 billion.
SEVERN BANCORP: Reports Results of April 22 Shareholders' Meeting
-----------------------------------------------------------------
Severn Bancorp, Inc., held its Annual Meeting of Shareholders on
April 22, 2010, at which time it (a) Albert W. Shields was re-
elected to serve an additional three-year term as director, (b)
Eric M. Keitz elected to serve an inaugural three-year term as
director (c) ratified the appointment of ParenteBeard LLC as
Bancorp's independent auditor for the fiscal year ending December
31, 2010, and (d) approved a non-binding advisory vote on
Bancorp's executive compensation.
The terms of these Directors continued after the Annual Meeting:
* Alan J. Hyatt;
* John A. Lamon III;
* Melvin E. Meekins, Jr.;
* Ronald P. Pennington;
* T. Theodore Schultz;
* Konrad M. Wayson
As reported by the Troubled Company Reporter on December 28, 2009,
the Board of Directors of Severn Bancorp suspended the common
stock dividend for the fourth quarter of 2009. This represents a
reduction of $0.03 per share from the common stock dividend
declared for the third quarter of 2009.
As reported by the TCR on November 25, 2009, Annapolis, Maryland-
based Severn Bancorp along with its Bank unit, has entered into
supervisory agreements with the Office of Thrift Supervision, the
Bank's primary federal regulator. The agreements set forth steps
being taken in response to regulatory concerns with its operating
results and effects of the current economic environment facing the
financial services industry.
About Severn Savings Bank
Founded in 1946, Severn Savings Bank, FSB --
http://www.severnbank.com/-- is a full-service community bank
offering a wide array of personal and commercial banking products
as well as residential and commercial mortgage lending. It has
assets of nearly $1 billion and four branches located in
Annapolis, Edgewater and Glen Burnie. The bank specializes in
exceptional customer service and holds itself and its employees to
a high standard of community contribution. Severn Bancorp, Inc.,
(Nasdaq: SVBI) is the parent company of Severn Savings Bank.
SPANSION INC: Emerges from Chapter 11 Reorganization
----------------------------------------------------
Spansion Inc. has emerged from Chapter 11 reorganization. During
the reorganization, Spansion focused its business on serving
embedded and targeted wireless applications, resulting in four
consecutive quarters of operating profit and $225 million in
generated cash.
"We are pleased to have emerged from Chapter 11 a stronger, more
focused company. As a result, we are better able to serve our
customers," said John Kispert, president and CEO of Spansion, who
also pointed to a healthy balance sheet as the foundation for
long-term success.
Spansion entered Chapter 11 reorganization with over $1.5 billion
in debt. Today, Spansion emerged a well capitalized company with
less than $480 million in debt and approximately $230 million in
cash, which is supplemented with an undrawn credit line of up to
$65 million. Stockholder's equity was enhanced by a rights
offering of approximately $105 million which is reflected in its
cash position.
On March 1, 2009, Spansion filed for Chapter 11 bankruptcy
protection. The company submitted its first plan of
reorganization on October 26, 2009 and gained approval from the
U.S. Bankruptcy Court on its amended disclosure statement on
December 22, 2009. Spansion received confirmation from the U.S.
Bankruptcy Court for its plan of reorganization on April 16, 2010
and emerged from Chapter 11 protection on May 10, 2010. As a
result of Spansion's emergence, Spansion's old common stock has
been canceled and no longer trades. Some pre-bankruptcy claims
and other administrative matters will remain pending until they
are resolved. However, effective as of today, Spansion is no
longer under the jurisdiction of the U.S. Bankruptcy Court for the
District of Delaware.
"Through the determination of the entire Spansion team, the
company has remained focused on serving our customers as we
restructured," said Kispert. "Now that the reorganization process
is behind us, we look forward to applying even greater energy to
ensure our customers' success in their chosen markets."
About Spansion Inc.
Spansion Inc. (NASDAQ: SPSN) -- http://www.spansion.com/-- is a
Flash memory solutions provider, dedicated to enabling, storing
and protecting digital content in wireless, automotive,
networking and consumer electronics applications. Spansion,
previously a joint venture of AMD and Fujitsu, is the largest
company in the world dedicated exclusively to designing,
developing, manufacturing, marketing, selling and licensing Flash
memory solutions.
Spansion Inc. and its affiliates filed voluntary petitions for
Chapter 11 on March 1, 2009 (Bankr. D. Del. Lead Case No. 09-
10690). On February 9, 2009, Spansion's Japanese subsidiary,
Spansion Japan Ltd., voluntarily entered into a proceeding under
the Corporate Reorganization Law (Kaisha Kosei Ho) of Japan to
obtain protection from its creditors as part of the company's
restructuring efforts. None of Spansion's subsidiaries in
countries other than the United States and Japan are included in
the U.S. or Japan filings. Michael S. Lurey, Esq., Gregory O.
Lunt, Esq., and Kimberly A. Posin, Esq., at Latham & Watkins LLP,
have been tapped as bankruptcy counsel. Michael R. Lastowski,
Esq., at Duane Morris LLP, is the Delaware counsel. Epiq
Bankruptcy Solutions LLC, is the claims agent. As of Sept. 30,
2008, Spansion had total assets of US$3,840,000,000, and total
debts of US$2,398,000,000.
Spansion Japan Ltd. filed a Chapter 15 petition on April 30, 2009
(Bankr. D. Del. Case No. 09-11480). The Chapter 15 Petitioner's
counsel is Gregory Alan Taylor, Esq., at Ashby & Geddes. It said
that Spansion Japan had US$10 million to US$50 million in assets
and US$50 million to US$100 million in debts.
Judge Kevin J. Carey confirmed Spansion's Plan of Reorganization
on April 16, 2010. A group of holders of Convertible notes and
equity in Spansion presented an alternative plan, which would pay
senior noteholders in full and has funding commitment of in excess
of $425 million, but the plan was rejected.
ST. VINCENTS: Closing May Violate Federal and State WARN Acts
-------------------------------------------------------------
The closing of St. Vincent's Hospital on Saturday, May 1, 2010
that resulted in the layoff of 3,500 employees appears to have
violated the federal Worker and Adjustment and Retraining
Notification Act. It also appears to have violated the New York
WARN Act. The statutes require that employers give sixty and
ninety days, respectively, advance notice of any closure or mass
layoff. The penalty for failing to give such notice is wages and
benefits that the employee would have been entitled to during the
notice period.
"We have spoken with several employees and union representatives,"
said Charles A. Ercole, a partner with Klehr Harrison Harvey
Branzburg LLP. "We are continuing our investigation and intend to
file a class action lawsuit or class proof of claim in the
bankruptcy court."
Mr. Ercole and his firm have successfully handled more than a
dozen WARN Act cases. For more information on this article or the
WARN Act, please do not hesitate to contact Mr. Ercole.
About Saint Vincents Catholic Medical Centers
St. Vincents Catholic Medical Centers returned to bankruptcy court
by filing another Chapter 11 petition April 14, 2010, in New York
(Bankr. S.D.N.Y. Case No. 10-11963). The new petition listed
assets of $348 million against debt totaling $1.09 billion.
Adam C. Rogoff, Esq., and Kenneth H. Eckstein, Esq., at Kramer
Levin Naftalis & Frankel LLP, represent the Debtor in its Chapter
11 effort.
Although the hospitals emerged from the prior reorganization in
July 2007 with a Chapter 11 plan said to have a "a realistic
chance" of paying all creditors in full, the bankruptcy left the
medical center with more than $1 billion in debt. The new filing
occurred after a $64 million operating loss in 2009 and the last
potential buyer terminated discussions for taking over the
flagship hospital.
Saint Vincents Catholic Medical Centers -- http://www.svcmc.org/-
- is anchored by St. Vincent's Hospital Manhattan, an academic
medical center located in Greenwich Village and the only emergency
room on the Westside of Manhattan from Midtown to Tribeca, St.
Vincent's Westchester, a behavioral health hospital in Westchester
County, and continuing care services that include two skilled
nursing facilities in Brooklyn, another on Staten Island, a
hospice, and a home health agency serving the Metropolitan New
York area.
Saint Vincent Catholic Medical Centers of New York and six of its
affiliates first filed for Chapter 11 protection on July 5, 2005
(Bankr. S.D.N.Y. Case No. 05-14945 through 05-14951).
STERLING MINING: Gets Court Nod on $24-Mil. Assets Sale
-------------------------------------------------------
American Bankruptcy Institute reports that Sterling Mining Co.
received bankruptcy court approval of the $24 million sale of its
assets to Silver Opportunity Partners LLC.
Based in Coeur d'Alene, Idaho, Sterling Mining Company (OTCBB:SRLM
and FSE:SMX) -- http://www.SterlingMining.com/-- is a mineral
resource development and exploration company. Sterling is engaged
in the business of acquiring, exploring, developing and mining
mineral properties primarily those containing silver and
associated base and precious metals. Sterling operates the
Sunshine Silver Mine in Idaho and has exploration projects in
Idaho, U.S.A. Sterling was incorporated under the laws of the
State of Idaho on February 3, 1903 and its common shares are
currently listed on the OTCBB: SRLMQ and Frankfurt Stock Exchange:
SMX.
Sterling is currently a debtor-in-possession in Chapter 11
Bankruptcy in the District of Idaho, U.S.A. Sterling Mining filed
for bankruptcy protection on March 3, 2009 (Bankr. D. Idaho Case
No. 09-20178). Bruce A. Anderson, Esq., at Elsaesser Jarzabek
Anderson Marks Elliott & McHugh, Chartered represents the Debtor
as counsel.
As of September 30, 2008, Sterling Mining had $31.9 million in
total assets, and $13.2 million in total current liabilities and
$1.6 million in total long-term liabilities. In its schedules,
the Debtor listed total assets of $11,706,761 and total debts of
$14,159,010.
TAVERN ON THE GREEN: Ch. 7 Trustee Moves to Reclaim Firm's Name
---------------------------------------------------------------
Bankruptcy Law360 reports that the interim Chapter 7 trustee for
famed Central Park restaurant Tavern on the Green LP has moved to
try and get back the company's most important possession - its
name, once valued at $19 million - which is now owned by the city
of New York.
Jil Mazer-Marino, who was appointed trustee in March when the case
was converted from Chapter 11 to Chapter 7, lodged a notice of
appeal Wednesday, according to Law360.
Tavern on the Green LP is the operator of the 75-year-old
restaurant in New York's Central Park. Tavern on the Green, the
second-highest grossing restaurant in the U.S. last year, was
founded in 1934 by New York Parks Commissioner Robert Moses and
the license was bought by restaurateur Warner LeRoy in 1974.
The Company filed for Chapter 11 on September 9, 2009 (Bankr.
S.D.N.Y. Case No. 09-15450). It listed assets and debts of as
much as $50 million each.
US CONCRETE: Wants 45-Day Extension for Schedules Filing
--------------------------------------------------------
U.S. Concrete, Inc., et al., have asked the U.S. Bankruptcy Court
for the District of Delaware to extend for an additional 45 days
the filing of statements of financial affairs, schedules of assets
and liabilities, schedules of current income and expenditures, and
statements of executory contracts and unexpired leases.
Because the Debtors hope to emerge from Chapter 11 within 90 days,
the Debtors believe it may be unnecessary to file the schedules
and statements in these Chapter 11 cases, and may seek further
extensions, as appropriate, pending confirmation of the Plan.
Houston, Tex.-based U.S. Concrete, Inc., aka RMX Industries, Inc.,
is a major producer of ready-mixed concrete, precast concrete
products and concrete-related products in select markets in the
United States.
The Company filed for Chapter 11 bankruptcy protection on
April 29, 2010 (Bankr. D. Del. Case No. 10-11407). Patrick J.
Nash Jr., Esq., and Ross M. Kwasteniet, Esq., at Kirkland & Ellis
LLP, assist the Company in its restructuring effort as bankruptcy
counsel.
James E. O'Neill, Esq., Laura Davis Jones, Esq., and Mark M.
Billion, Esq., at Pachulski Stang Ziehl & Jones LLP, is the
Company's co-counsel.
Epiq Bankruptcy Solutions is the Company's claims agent.
According to the schedules, the Company says that assets total
$389,160,000 while debts total $399,351,000.
The Debtor's affiliates, Alberta Investments, Inc., et al., filed
separate Chapter 11 petitions on April 29, 2010.
US CONCRETE: Section 341(a) Meeting Scheduled for June 3
--------------------------------------------------------
The U.S. Trustee for Region 3 will convene a meeting of U.S.
Concrete, Inc., et al.'s creditors on June 3, 2010, at 11:00 a.m.
The meeting will be held at J. Caleb Boggs Federal Building, 2nd
Floor, Room 5209.
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.
Houston, Tex.-based U.S. Concrete, Inc., aka RMX Industries, Inc.,
is a major producer of ready-mixed concrete, precast concrete
products and concrete-related products in select markets in the
United States.
The Company filed for Chapter 11 bankruptcy protection on
April 29, 2010 (Bankr. D. Del. Case No. 10-11407). Patrick J.
Nash Jr., Esq., and Ross M. Kwasteniet, Esq., at Kirkland & Ellis
LLP, assist the Company in its restructuring effort as bankruptcy
counsel.
James E. O'Neill, Esq., Laura Davis Jones, Esq., and Mark M.
Billion, Esq., at Pachulski Stang Ziehl & Jones LLP, is the
Company's co-counsel.
Epiq Bankruptcy Solutions is the Company's claims agent.
According to the schedules, the Company says that assets total
$389,160,000 while debts total $399,351,000.
The Debtor's affiliates, Alberta Investments, Inc., et al., filed
separate Chapter 11 petitions on April 29, 2010.
US CONCRETE: Taps Kirkland & Ellis as Bankruptcy Counsel
--------------------------------------------------------
U.S. Concrete, Inc., et al., have sought permission from the U.S.
Bankruptcy Court for the District of Delaware to employ Kirkland &
Ellis LLP as bankruptcy counsel, nunc pro tunc to the Petition
Date.
K&E will, among other things:
a. attend meetings and negotiating with representatives of
the creditors and other parties in interest;
b. take necessary actions to protect and preserve the
Debtors' estates, including prosecuting actions on the
Debtors' behalf, defending any action commenced against
the Debtors, and representing the Debtors in negotiations
concerning litigation in which the Debtors are involved,
including objections to claims filed against the Debtors'
estates;
c. prepare pleadings in connection with these Chapter 11
cases, including motions, applications, answers, orders,
reports, and papers necessary or otherwise beneficial to
the administration of the Debtors' estates; and
d. represent the Debtors in connection with obtaining
authority to continue using cash collateral and, if
necessary, postpetition financing.
K&E will be paid based on the hourly rates of its personnel:
James H.M. Sprayregen $995
Patrick J. Nash, Jr. $885
Ross M. Kwasteniet $680
Partners $580-$995
Of Counsel $435-$995
Associates $340-$670
Paraprofessionals $135-$285
To the best of the Debtors' knowledge, K&E is "disinterested" as
that term is defined in Section 101(14) of the Bankruptcy Code.
Houston, Tex.-based U.S. Concrete, Inc., aka RMX Industries, Inc.,
is a major producer of ready-mixed concrete, precast concrete
products and concrete-related products in select markets in the
United States.
The Company filed for Chapter 11 bankruptcy protection on
April 29, 2010 (Bankr. D. Del. Case No. 10-11407).
James E. O'Neill, Esq., Laura Davis Jones, Esq., and Mark M.
Billion, Esq., at Pachulski Stang Ziehl & Jones LLP, is the
Company's co-counsel.
Epiq Bankruptcy Solutions is the Company's claims agent.
According to the schedules, the Company says that assets total
$389,160,000 while debts total $399,351,000.
The Debtor's affiliates, Alberta Investments, Inc., et al., filed
separate Chapter 11 petitions on April 29, 2010.
US CONCRETE: Wants to Employ Pachulski Stang as Co-Counsel
----------------------------------------------------------
U.S. Concrete, Inc., et al., have asked for authorization from the
U.S. Bankruptcy Court for the District of Delaware to employ
Pachulski Stang Ziehl & Jones LLP as bankruptcy co-counsel.
Pachulski Stang will:
a. provide legal advice with respect to the Debtors' powers
and duties as debtors-in-possession in the continued
operation of their businesses and management of their
property;
b. prepare on behalf of the Debtors any necessary
applications, motions, answers, orders, reports, and other
legal papers;
c. appear in Court on behalf of the Debtors;
d. prepare and pursue confirmation of a plan and approval of
a disclosure statement; and
e. perform other legal services for the Debtors that may be
necessary and proper in these proceedings.
Pachulski Stang will be paid based on the hourly rates of its
personnel:
Laura Davis Jones $855
James E. O'Neill $625
Mark M. Billion $395
M. Lynzy Oberholzer $220
To the best of the Debtors' knowledge, Pachulski Stang is
"disinterested" as that term is defined in Section 101(14) of the
Bankruptcy Code.
Houston, Tex.-based U.S. Concrete, Inc., aka RMX Industries, Inc.,
is a major producer of ready-mixed concrete, precast concrete
products and concrete-related products in select markets in the
United States.
The Company filed for Chapter 11 bankruptcy protection on
April 29, 2010 (Bankr. D. Del. Case No. 10-11407). Patrick J.
Nash Jr., Esq., and Ross M. Kwasteniet, Esq., at Kirkland & Ellis
LLP, assist the Company in its restructuring effort as bankruptcy
counsel.
Epiq Bankruptcy Solutions is the Company's claims agent.
According to the schedules, the Company says that assets total
$389,160,000 while debts total $399,351,000.
The Debtor's affiliates, Alberta Investments, Inc., et al., filed
separate Chapter 11 petitions on April 29, 2010.
VISTEON CORP: Files Second Amended Plan of Reorganization
---------------------------------------------------------
BankruptcyData.com reports that Visteon Corp. filed with the U.S.
Bankruptcy Court a Second Amended Plan of Reorganization and
related Disclosure Statement.
The Plan consists of two mutually exclusive sub-plans:
(1) A rights offering sub-plan under which certain unsecured
bondholders would have the opportunity to receive 95
percent of the equity in reorganized Visteon in exchange
for $1.25 billion in cash raised through a backstopped
equity rights offering. The remaining 5 percent in equity
would be distributed among unsecured bondholders.
Unsecured bondholders unable to participate in the rights
offering pursuant to securities laws would also be provided
with a cash recovery under the plan in lieu of receiving
rights to participate in the rights offering. Secured
lenders would be paid in full from proceeds from the
capital raise and exit financing as outlined in the plan.
(2) A claims conversion sub-plan, similar to the plan filed by
Visteon on March 15, 2010, under which the term loan
lenders would receive approximately 85 percent of the
equity in reorganized Visteon and unsecured bondholders
would receive approximately 15 percent of the equity.
Under both sub-plans the other general unsecured creditors would
receive a cash payout. Under the Second Amended Plan, Visteon
would retain its U.S. defined benefit pension plans. The second
amended plan still leaves bondholders and other general unsecured
creditors substantially impaired. As such, the Second Amended
Plan does not provide for any recovery to holders of Visteon's
equity. The fundamental tenet of this dual plan concept is that
if the bondholders deliver the $1.25 billion and exit financing,
the Company will move forward with the rights offering sub-plan.
If the bondholders are unable to raise this cash, the company will
'toggle' to the claims conversion sub-plan under guidelines of the
Second Amended Plan and related agreements. Holders of more than
two-thirds of the aggregate face amount of the company's bonds
have executed plan support agreements in favor of the Second
Amended Plan. While the steering committee of term lenders has
not yet indicated a willingness to support the Second Amended
Plan, the Company states that the term lenders would be paid in
full, in cash, including accrued pre-petition and post-petition
interest, and would thereby be unimpaired under the rights
offering sub-plan and would be receiving virtually identical
treatment under the claims conversion sub-plan to that which they
unanimously supported under the First Amended Plan.
About Visteon Corp.
Headquartered in Van Buren Township, Michigan, Visteon Corporation
(NYSE: VC) -- http://www.visteon.com/-- is a global automotive
supplier that designs, engineers and manufactures innovative
climate, interior, electronic and lighting products for vehicle
manufacturers, and also provides a range of products and services
to aftermarket customers. The Company has corporate offices in
Van Buren Township, Michigan (U.S.); Shanghai, China; and Kerpen,
Germany. It has facilities in 27 countries and employs roughly
35,500 people. The Company has assets of US$4,561,000,000 and
debts of US$5,311,000,000 as of March 31, 2009.
Visteon Corporation and 30 of its affiliates filed for Chapter 11
protection on May 28, 2009, (Bank. D. Del. Case No. 09-11786
through 09-11818). Judge Christopher S. Sontchi oversees the
Chapter 11 cases. James H.M. Sprayregen, Esq., Marc Kieselstein,
Esq., and James J. Mazza, Jr., Esq., at Kirkland & Ellis LLP, in
Chicago, Illinois, represent the Debtors in their restructuring
efforts. Laura Davis Jones, Esq., James E. O'Neill, Esq., Timothy
P. Cairns, Esq., and Mark M. Billion, Esq., at Pachulski Stang
Ziehl & Jones LLP, in Wilmington, Delaware, serve as the Debtors'
local counsel. The Debtors' investment banker and financial
advisor is Rothschild Inc. The Debtors' notice, claims, and
solicitation agent is Kurtzman Carson Consultants LLC. The
Debtors' restructuring advisor is Alvarez & Marsal North America,
LLC.
Bankruptcy Creditors' Service, Inc., publishes Visteon Bankruptcy
News. The newsletter tracks the Chapter 11 proceedings of Visteon
Corp. and its debtor-affiliates. (http://bankrupt.com/newsstand/
or 215/945-7000)
VISTEON CORP: Units File GPS Patent Suit Against MiTAC
------------------------------------------------------
Two subsidiaries of Visteon Corp. have hit MiTAC International
Corp. and one of its units with a patent infringement suit over
GPS technology, Bankruptcy Law360 reports.
Law360 says Visteon Global Technologies Inc. and Visteon
Technologies LLC based in Van Buren Township, Mich., filed a
complaint Wednesday in the U.S. District Court for the Eastern
District of Michigan.
Headquartered in Van Buren Township, Michigan, Visteon Corporation
(NYSE: VC) -- http://www.visteon.com/-- is a global automotive
supplier that designs, engineers and manufactures innovative
climate, interior, electronic and lighting products for vehicle
manufacturers, and also provides a range of products and services
to aftermarket customers. The Company has corporate offices in
Van Buren Township, Michigan (U.S.); Shanghai, China; and Kerpen,
Germany. It has facilities in 27 countries and employs roughly
35,500 people. The Company has assets of US$4,561,000,000 and
debts of US$5,311,000,000 as of March 31, 2009.
Visteon Corporation and 30 of its affiliates filed for Chapter 11
protection on May 28, 2009, (Bank. D. Del. Case No. 09-11786
through 09-11818). Judge Christopher S. Sontchi oversees the
Chapter 11 cases. James H.M. Sprayregen, Esq., Marc Kieselstein,
Esq., and James J. Mazza, Jr., Esq., at Kirkland & Ellis LLP, in
Chicago, Illinois, represent the Debtors in their restructuring
efforts. Laura Davis Jones, Esq., James E. O'Neill, Esq., Timothy
P. Cairns, Esq., and Mark M. Billion, Esq., at Pachulski Stang
Ziehl & Jones LLP, in Wilmington, Delaware, serve as the Debtors'
local counsel. The Debtors' investment banker and financial
advisor is Rothschild Inc. The Debtors' notice, claims, and
solicitation agent is Kurtzman Carson Consultants LLC. The
Debtors' restructuring advisor is Alvarez & Marsal North America,
LLC.
Bankruptcy Creditors' Service, Inc., publishes Visteon Bankruptcy
News. The newsletter tracks the Chapter 11 proceedings of Visteon
Corp. and its debtor-affiliates. (http://bankrupt.com/newsstand/
or 215/945-7000)
WEST SHORE: Files Schedules of Assets and Liabilities
-----------------------------------------------------
West Shore Resort Properties III, LLC, filed with the U.S.
Bankruptcy Court for the District of Nevada its schedules of
assets and liabilities, disclosing:
Name of Schedule Assets Liabilities
---------------- ----------- -----------
A. Real Property $16,000,000
B. Personal Property $12,000,000
C. Property Claimed as
Exempt
D. Creditors Holding
Secured Claims $15,813,466
E. Creditors Holding
Unsecured Priority
Claims $0
F. Creditors Holding
Unsecured Non-priority
Claims $17,440
----------- -----------
TOTAL $28,000,000 $15,830,906
Reno, Nevada-based West Shore Resort Properties III, LLC, filed
for Chapter 11 bankruptcy protection on March 30, 2010 (Bankr. D.
Nev. Case No. 10-51101). Sallie B. Armstrong, Esq., who has an
office in Reno, Nevada, assists the Company in its restructuring
effort. In its petition, the Company estimated its assets and
debts at $10,000,000 to $50,000,000.
WEST SHORE: Taps Downey Brand to Handle Reorganization Case
-----------------------------------------------------------
West Shore Resort Properties III, LLC, asks the U.S. Bankruptcy
Court for the District of Nevada for permission to employ Downey
Brand LLP, as counsel.
Downey Brand will, among other things:
-- prepare and file schedules, statement of financial affairs,
and other related forms;
-- represent the Debtor-in-possession at all meetings of
creditors, hearings, conferences, and trial in the case or
any litigation arising in connection with the case; and
-- prepare, file and present to the Court any pleading
requesting or opposing relief.
Nathan L. Topol, managing member, provided Downey Brand a one-time
hold-back retainer amounting to $25,000. The hourly rates of
Downey Brand's personnel are:
Sallie B. Armstrong, partner $400
Jamie P. Dreher, partner $340
Attorneys $170 - $450
Michelle N. Kazmar, associate $235
Donna Ellis, paralegal $130
Paralegals $110 - $175
To the best of the Debtor's knowledge, Downey Brand is a
"disinterested person" as that term is defined in Section 101(14)
of the Bankruptcy Code.
The firm can be reached at:
Downey Brand LLP
427 W Plumb LN
Reno, NV 89509
Tel: (775) 329-5900
Fax: (775) 786-5443
E-mail: sarmstrong@downeybrand.com
About West Shore Resort Properties III
Reno, Nevada-based West Shore Resort Properties III, LLC, filed
for Chapter 11 bankruptcy protection on March 30, 2010 (Bankr. D.
Nev. Case No. 10-51101). In its petition, the Company estimated
its assets and debts at $10,000,000 to $50,000,000.
XERIUM TECHNOLOGIES: Minority Holders Object to Prepackaged Plan
----------------------------------------------------------------
Bankruptcy Law360 reports that Privet Fund Management LLC and
Tiburon Capital Management, minority shareholders of Xerium
Technologies Inc., have objected to the company's prepackaged plan
of reorganization that seeks to eliminate some $150 million in
debt.
Based in Raleigh, North Carolina, Xerium Technologies, Inc. (NYSE:
XRM), manufactures and supplies two types of consumable products
used primarily in the production of paper: clothing and roll
covers. The Company, which operates around the world under a
variety of brand names, utilizes a broad portfolio of patented and
proprietary technologies to provide customers with tailored
solutions and products integral to production, all designed to
optimize performance and reduce operational costs. With 32
manufacturing facilities in 13 countries around the world, Xerium
has approximately 3,300 employees.
Xerium Technologies and certain subsidiaries filed for Chapter 11
on March 30, 2010 (Bankr. D. Del. Lead Case No. 10-11031). Judge
Kevin J. Carey presides over the cases. John J. Rapisardi, Esq.;
George A. Davis, Esq.; and Sharon J. Richardson, Esq., at
Cadwalader, Wickersham & Taft LLP; and Mark D. Collins, Esq., at
Richards, Layton & Finger, P.A., serve as bankruptcy counsel.
Brian Fox, Michelle Campbell, and Michael Hartley at AlixPartners,
LLC, serve as the Debtors' restructuring advisors. Stephen Ledoux
and Daniel Gilligan at Rothschild Inc. serve as the Debtors'
investment bankers. Garden City Group Inc. is the Debtors' claims
agent. Xerium Technologies disclosed total assets of $693,511,000
and total debts of $813,168,000 in its petition.
Bankruptcy Creditors' Service, Inc., publishes XERIUM TECHNOLOGIES
BANKRUPTCY NEWS. The newsletter tracks the Chapter 11 proceeding
undertaken by Xerium Technologies and its various affiliates.
(http://bankrupt.com/newsstand/or 215/945-7000)
YOUNG BROADCASTING: Unsec. Creditors' Reinstatement Plan Denied
---------------------------------------------------------------
Law firm Milbank, Tweed, Hadley & McCloy LLP reported that it has
received a favorable ruling in the Young Broadcasting Inc.
bankruptcy confirmation fight on behalf of Wachovia Bank, N.A.,
acting as the agent for the senior secured lenders. The ruling
denies a "reinstatement plan" proposed by the unsecured creditors
in the bankruptcy and confirms the plan of reorganization
supported by Milbank's client. The U.S. Bankruptcy Court for the
Southern District of New York refused to accept the unsecured
creditors' plan, signaling that reinstatement strategies in
bankruptcy cases will face substantial judicial scrutiny where the
plan proponents cannot demonstrate that their plan is the most
feasible and responsible course for the debtor.
"We were very pleased that the Court accepted our arguments that
the proposed reinstatement plan was not viable and did not contain
adequate legal protections," said Los Angeles-based Milbank
partner Gregory A. Bray. "Clearly, the question of which
creditors should retain the most influence during restructuring
has become a critical issue in bankruptcy filings. This ruling
sets a cautious tone for all reinstatement plans, which require
scrutiny and analysis to ensure they position the debtor for
success post-reorganization." Reinstatement plans have become
popular among debtors seeking to maintain credit agreements with
favorable terms and below-market interest rates and junior
creditor classes seeking a greater recovery.
U.S. Bankruptcy Judge Arthur J. Gonzalez found that it was
"undisputed" that the current value of the Debtors business was
less than the amount of Milbank's client's claim and that "any
evidence of the purported future valuation of the company in
November 2012 is purely speculative."
Confirmation of the lenders' plan followed repeated impeachment of
Young Broadcasting's management team and the valuation expert
proffered by the unsecured creditors. Milbank's litigators
successfully cross-examined these witnesses at trial, undermining
the company's inflated business projections and the expert
testimony on feasibility proffered by the unsecured creditors'
expert.
"It was clear from the outset that the valuation estimates were
inflated," said Milbank senior litigation partner, Linda Dakin-
Grimm ( ldakin-grimm@milbank.com ). "The Court agreed that the
assumed future sale of the company under the unsecured creditors'
plan was at a price that was not supported by any reasonable
analysis." Ms. Dakin-Grimm tried the case along with partners
Daniel M. Perry ( dperry@milbank.com ) and Mark C. Scarsi (
mscarsi@milbank.com ).
About Young Broadcasting
Headquartered in New York City, 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).
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.
About Milbank
Milbank, Tweed, Hadley & McCloy LLP -- http://www.milbank.com/--
is a leading international law firm which has been providing
innovative legal solutions to clients throughout the world for
more than 140 years. Milbank is headquartered in New York and has
offices in Beijing, Frankfurt, Hong Kong, London, Los Angeles,
Munich, Singapore, Tokyo and Washington, DC.
The Firm's lawyers provide a full range of legal services to the
world's leading commercial, financial and industrial enterprises,
as well as to institutions, individuals and governments. Milbank's
lawyers meet the needs of our clients by offering a highly
integrated and collaborative range of services across key practice
groups throughout our global network. Milbank's integrated
practice is underpinned by our attorneys' acknowledged technical
excellence, sectoral expertise and a strong tradition of
innovation and client service.
* S&P 2010 Tally of Global Defaults Now at 32
---------------------------------------------
One Indonesian transportation company deferred interest payments
last week, raising the 2010 year-to-date tally of global corporate
defaults to 32, said an article published by Standard & Poor's,
titled "Global Corporate Default Update (April 30 - May 6,
2010) (Premium)."
By region, the current year-to-date default tallies are 22 in the
U.S., two in Europe, three in the emerging markets, and five in
the other developed region (Australia, Canada, Japan, and New
Zealand).
"So far this year, Chapter 11 filings and distressed exchanges
account for 10 defaults each, missed interest or principal
payments are responsible for seven, regulatory directives and
receiverships account for one each, and the remaining three
defaulted issuers are confidential," said Diane Vazza, head of
Standard & Poor's Global Fixed Income Research.
Of the global corporate defaulters in 2010, 38% of issues with
available recovery ratings had recovery ratings of '6' (indicating
our expectation for negligible recovery of 0%-10%), 12% of the
issues had recovery ratings of '5' (modest recovery prospects of
10%-30%), 12% had recovery ratings of '4' (average recovery
prospects of 30%-50%), and 19% had recovery ratings of '3'
(meaningful recovery prospects of 50%-70%). And for the remaining
two rating categories, 15% of the issues had recovery ratings of
'2' (substantial recovery prospects of 70%-90%) and 4% of issues
had recovery ratings of '1' (very high recovery prospects of 90%-
100%).
"Our baseline projection for the U.S. corporate speculative-grade
default rate in the 12 months ending in March 2011 is 3.5%, with
alternative scenarios of 4.9% at the pessimistic end and 3.0% at
the optimistic," said Ms. Vazza.
S&P's baseline forecast for year-end 2010 was 5.0%, with
alternatives of 6.9% (pessimistic) and 4.3% (optimistic), compared
with a long-term (1981-2009) average of 4.5%. Nevertheless, S&P
believes residual default risk beyond the one-year forecast
horizon could increase because of the significant overhang of
surviving leveraged corporate issuers. "The substantial decline
in risk premiums for lower-rated borrowers and the return of what
we view as questionable practices and structures in some recent
deals -- such as raising bond funds to pay out shareholder
dividends or sponsors -- further raise flags that the optimism
might be overdone. In the slim chance that the economy
experiences a double-dip recession, many of the surviving
leveraged issuers originated during 2003-2007 could face renewed
default risk unless they significantly reduce their debt burdens."
* Bank Failures This Year Now 68 As 4 Banks Shut May 7
------------------------------------------------------
Regulators closed four banks -- 1st Pacific Bank of California,
San Diego, CA; Access Bank, Champlin, MN, Towne Bank of Arizona,
Mesa, AZ; and The Bank of Bonifay, Bonifay, FL -- on May 7,
raising the total closings for this year to 68.
To protect depositors, the Federal Deposit Insurance Corporation
entered into a purchase and assumption agreement with various
banks for the assumption of deposits and takeover of operations of
the closed banks.
The closing of the four banks has cost the FDIC $214 million. The
failing banks were in Arizona, California, Minnesota and Florida.
Deposits at the failing banks were taken over by other
institutions.
In accordance with Federal law, allowed claims against failed
financial institutions will be paid, after administrative
expenses, in this order of priority:
1. Depositors
2. General Unsecured Creditors
3. Subordinated Debt
4. Stockholders
2010 Failed Banks List
The FDIC was appointed as receiver for the closed banks. To
protect the depositors, the FDIC entered into a purchase and
assumption agreement with various banks that agreed to assume the
deposits of most of the closed banks. The FDIC also entered into
loss-share transactions on assets bought by the banks.
For this year, the failed banks are:
Loss-Share
Transaction Party FDIC Cost
Assets of Bank That Assumed to Insurance
Closed Bank Deposits & Bought Fund
Closed Bank (millions) Certain Assets (millions)
----------- ---------- -------------- -----------
1st Pacific Bank $335.8 City National Bank $87.7
Access Bank $32.0 PrinsBank, Prinsburg $5.5
Towne Bank of Ariz $120.2 Commerce Bank $41.8
The Bank of Bonifay $242.9 First Federal Bank $78.7
Frontier Bank $3,500.0 Union Bank, NA $1,370.0
BC National Banks $67.2 Community First $11.4
Champion Bank $187.3 BankLiberty $52.7
CF Bancorp $1,650.0 First Michigan Bank $615.3
Westernbank PR $11,940.0 Banco Popular de PR $3,310.0
R-G Premier Bank $5,920.0 Scotiabank de PR $1,230.0
Eurobank, SJ, PR $2,560.0 Oriental Bank & Trust $743.9
Lincoln Park Savings $199.9 Northbrook Bank $48.4
Peotone Bank $130.2 First Midwest $31.7
Wheatland Bank $437.2 Wheaton Bank $133.0
New Century Bank $485.6 MB Financial $125.3
Citizens Bank&Trust $77.3 Republic Bank $20.9
Broadway Bank $1,200.0 MB Financial $394.3
Amcore Bank $3,800.0 Harris $220.3
Lakeside Community $53.0 People's United $11.2
Innovative Bank $268.9 Center Bank $37.8
City Bank $1,130.0 Whidbey Island $323.4
Butler Bank $233.2 People's United $22.9
AmericanFirst Bank $90.5 TD Bank, N.A. $10.5
First Federal $393.3 TD Bank, N.A. $6.0
Riverside National $3,420.0 TD Bank, N.A. $491.8
Tamalpais Bank $628.9 Union Bank, N.A. $81.1
Beach First National $585.1 Bank of NC $130.3
McIntosh Commercial $362.9 CharterBank, West Point $123.3
Desert Hills Bank $496.6 New York Community Bank $106.7
Unity National Bank $292.2 Bank of the Ozarks $67.2
Key West Bank $88.0 Centennial Bank $23.1
State Bank of Aurora $28.2 Northern State Bank $4.2
First Lowndes Bank $137.2 First Citizens Bank $38.3
Bank of Hiawassee $377.8 Citizens South Bank $137.7
Appalachian Community $1,010.0 Community & Southern $419.3
Advanta Bank Corp. $1,600.0 - None - $635.6
Century Security $96.5 Bank of Upson $29.9
American National $70.3 National Bank and Trust $17.1
The Park Avenue Bank $520.1 Valley National Bank $50.7
Statewide Bank $243.2 Home Bank, Lafayette $38.1
Old Southern Bank $315.6 Centennial Bank $94.6
LibertyPointe Bank $209.7 Valley National $24.8
Sun American Bank $535.7 First-Citizens Bank $103.8
Waterfield Bank $155.6 {FDIC Created} $51.0
Centennial Bank $215.2 Zions Bank $96.3
Bank of Illinois $211.7 Heartland Bank $53.7
Rainier Pacific Bank $446.2 Umpqua Bank, Roseburg $95.2
Carson River Community $51.1 Heritage Bank of Nevada $7.9
George Washington $412.8 FirstMerit Bank $141.4
La Jolla Bank $3,600.0 OneWest Bank, FSB $882.3
The La Coste Nat'l $53.9 Community National $3.7
Marco Community Bank $119.6 Omaha Bank $38.1
1st American State $18.2 Community Development $3.1
First National Bank $832.6 Community & Southern $260.4
Florida Community $875.5 Premier American Bank $352.6
American Marine Bank $373.2 Columbia State Bank $58.9
Marshall Bank, N.A. $59.9 United Valley Bank $4.1
First Regional Bank $2,180.0 First-Citizens Bank $825.5
Comm. Bank & Trust $1,210.0 SCBT, N.A. $354.5
Charter Bank $1,200.0 Charter, Albuquerque $201.9
Evergreen Bank $488.5 Umpqua Bank, Roseburg $64.2
Columbia River Bank $1,100.0 Columbia State Bank $172.5
Bank of Leeton $20.1 Sunflower Bank $8.1
Premier American Bank $350.9 Bond Street subsidiary $85.0
Town Community $69.6 Bank First American $17.8
St. Stephen State $24.7 First State Bank $7.2
Barnes Banking $827.8 {DINB Created} $271.3
Horizon Bank $1,400.0 Washington Federal $539.1
In 2009, there were 140 failed banks, compared with just 25 for
2008.
A complete list of banks that failed since 2000 is available at:
http://www.fdic.gov/bank/individual/failed/banklist.html
702 Banks on Problem List
In its quarterly banking profile, the Federal Deposit Insurance
Corp. said that the number of institutions on its "Problem List"
rose to 702 at the end of 2009, from 552 at the end of the third
quarter and 252 at the end of 2008.
The FDIC, in its February 23 report, said that total assets of
"problem" institutions were $402.8 billion at yearend 2009,
compared with $345.9 billion at the end of September and $159.0
billion at the end of 2008. Both the number and assets of
"problem" institutions are at the highest level since June 30,
1993.
The Deposit Insurance Fund (DIF) decreased by $12.6 billion during
the fourth quarter to a negative $20.9 billion (unaudited)
primarily because of $17.8 billion in additional provisions for
bank failures. Also, unrealized losses on available-for-sale
securities combined with operating expenses reduced the fund by
$692 million. Accrued assessment income added $3.1 billion to the
fund during the quarter, and interest earned, combined with
termination fees on loss share guarantees and surcharges from the
Temporary Liquidity Guarantee Program added $2.8 billion. For the
year, the fund balance shrank by $38.1 billion, compared to a
$35.1 billion decrease in 2008. The DIF's reserve ratio was
negative 0.39% on December 31, 2009, down from negative 0.16% on
September 30, 2009, and 0.36% a year ago. The December 31, 2009,
reserve ratio is the lowest reserve ratio for a combined bank and
thrift insurance fund on record.
Forty-five insured institutions with combined assets of
$65.0 billion failed during the fourth quarter of 2009, at an
estimated cost of $10.2 billion. For all of 2009, 140 FDIC-
insured institutions with assets of $169.7 billion failed, at an
estimated cost of $37.4 billion. This was the largest number of
failures since 1990 when 168 institutions with combined assets of
$16.9 billion failed.
On November 12, 2009, the FDIC adopted a final rule amending the
assessment regulations to require insured depository institutions
to prepay their quarterly risk-based assessments for the fourth
quarter of 2009 and for all of 2010, 2011, and 2012 on December
30, 2009, along with each institution's risk-based assessment for
the third quarter of 2009. The FDIC is asking banks to prepay
three years of premiums on Dec. 30 to raise $45 billion for the
fund.
"Problem" institutions are those institutions with financial,
operational, or managerial weaknesses that threaten their
continued financial viability. They are rated by the FDIC or
Office of the Thrift Supervision as either a "4" or "5", based on
a scale of 1 to 5 in ascending order of supervisory concern.
The Problem List is not divulged to the public. No advance notice
is given to the public when a financial institution is closed.
Problem Institutions Failed Institutions
-------------------- -------------------
Year Number Assets (Mil) Number Assets (Mil)
---- ------ ------------ ------ ------------
2009 702 $402,800 140 $169,700
2008 252 $159,405 25 $371,945
2007 76 $22,189 3 $2,615
2006 50 $8,265 0 $0
2005 52 $6,607 0 $0
2004 80 $28,250 4 $170
A copy of the FDIC's Quarterly Banking Profile for the quarter
ended Dec. 31, 2009, is available for free at:
http://bankrupt.com/misc/FDIC_QBP_Q4_09.pdf
* Focus Management Group Launches Office in Columbus
----------------------------------------------------
J. Tim Pruban, President of Focus Management Group, reported that
the Company has recently opened an office in Columbus as part of
its ongoing growth strategy and as a response to the increasing
demand for its services throughout the central Ohio region. Mike
Grau -- m.grau@focusmg.com -- and John Bambach, Jr. --
j.bambach@focusmg.com -- are the managing directors of the office.
"We are pleased to bring our unique brand and portfolio of
restructuring services to Columbus and the surrounding region,"
said Mr. Grau. "This location in the center of the state, with
excellent connectivity throughout the Midwest, will allow us to
better serve our existing clients in the region as well as expand
our business."
As managing directors, Messrs. Bambach and Grau are responsible
for leading the Columbus team in the management of current key
relationships as well as expanding the company's business
development efforts.
"I look forward to becoming more actively involved in supporting
the needs of clients in this region," said Mr. Bambach. "The new
office provides us with an ideal platform to respond in a timely
manner to the varied demands of our business partners in the
area."
Mr. Grau is a senior financial executive with more than 20 years
experience in the areas of public accounting, commercial lending
and management consulting. He has performed financial,
operational, managerial and collateral evaluations of hundreds of
businesses throughout a broad range of industries. In addition to
his turnaround consulting and public accounting experience, Mr.
Grau worked for nearly a dozen years as an asset-based lender in
various senior level positions.
Mr. Bambach, a Certified Turnaround Professional, has over 30
years of experience leading organizational change as CEO, COO and
CFO of multiple companies, averting them from bankruptcy and
returning operations back to profitability. He is well versed in
all aspects of turnaround management, mergers and acquisitions,
operational improvement, business development and strategic
planning, Focus Management says.
The Columbus regional office is located at 4449 Easton Way on the
second floor.
About Focus Management Group
Headquartered in Tampa, FL, with offices in Atlanta, Chicago,
Cleveland, Columbus, Dallas, Los Angeles and Philadelphia, Focus
Management Group -- http://www.focusmg.com/-- provides nationwide
professional services in turnaround management, insolvency
proceedings, business restructuring and operational improvement
with a senior-level team of 130 professionals. The firm provides
a full portfolio of services to distressed companies and their
stakeholders, including secured lenders and equity sponsors.
* Getzler Henrich Appoints Colleen Palmer as Managing Director
--------------------------------------------------------------
Getzler Henrich has appointed Colleen Palmer as a managing
director of its Chicago office. Ms. Palmer comes to the firm with
over 25 years experience providing restructuring and financing
solutions for large, middle and small companies with operational
challenges and capital restructuring needs. Ms. Palmer will focus
on Getzler Henrich's business development and financial
restructuring engagements. She officially joined Getzler Henrich
on May 3rd.
Ms. Palmer has extensive debt restructuring expertise both in and
out of court, as well as strategy development, business building
and P&L management experience. She spent six years at GE
Commercial Finance where she launched a European-based
restructuring and corporate lending business with offices in the
United Kingdom, Italy, France and Germany. While increasing GE's
market presence as a key provider of asset-based and cash-flow
financing packages to European companies, she became known for
sound debt solutions for companies in underserved markets. Ms.
Palmer also spent three years developing GE's restructuring
business for the western half of the United States. Prior to this,
she spent over 20 years at Heller Financial Inc., in roles which
included portfolio manager, chief risk officer, and Senior Vice
President, Originations, Heller Business Credit. She most
recently served as chief lending officer/vice president of an
investment fund whose loan portfolio component consisted of over
700 secured loans exceeding $400 million.
Ms. Palmer received a master's degree from the Keller Graduate
School of Management in Chicago, and holds a bachelor's degree in
psychology from the University of Illinois in Chicago.
"We are confident that Colleen's extensive experience and track
record in financing will play a key role in assisting our client
base while contributing to our firm's organizational growth," said
Joel Getzler, vice chairman of Getzler Henrich & Associates, LLC.
"We look forward to working with her."
Ms. Palmer has served on the boards of directors at both the
Turnaround Management Association and American Bankruptcy
Institute, and completed both Six Sigma and GE Leadership training
programs. She has spoken frequently on global restructuring and
turnaround issues.
About Getzler Henrich
Getzler Henrich & Associates LLC -- http://www.getzlerhenrich.com
-- founded in 1968, is a turnaround and restructuring firm.
Having successfully restructured thousands of companies throughout
the U.S., Latin America and Asia, the firm has grown to provide a
broad array of services for both distressed and healthy companies
in the areas of restructuring and turnarounds, lean manufacturing,
sales and marketing strategy, M&A integration, technology systems
evaluation and implementation and customer-focused environment
creation.
* SSG Relocates New York Office to Rockefeller Center
-----------------------------------------------------
SSG Capital Advisors, LLC, has relocated its New York office from
445 Park Avenue to Rockefeller Center:
"Our new location in the heart and soul of midtown will help us
continue to meet the needs of a sophisticated market with expert
special situation investment banking guidance," SSG Capital says.
The SSG New York office is headed by Robert C. Smith, Managing
Director. Mr. Smith has over 25 years experience as an investment
banker and commercial lender with a particular emphasis on
restructuring and special situations transactions. He has guided
numerous U.S. and European middle market companies across a broad
spectrum of industries through complex financial restructurings,
sale transactions and private placements.
* Large Companies with Insolvent Balance Sheets
-----------------------------------------------
Total
Total Share-
Total Working Holders'
Assets Capital Equity
Company Ticker ($MM) ($MM) ($MM)
------ ------- --------
AUTOZONE INC AZO US 5,425.0 (100.6) (421.7)
SOUTHGOBI ENERGY 1878 HK 560.7 388.8 (2.8)
LORILLARD INC LO US 2,902.0 718.0 (37.0)
DUN & BRADSTREET DNB US 1,749.4 (99.5) (734.0)
ALLIANCE DATA ADS US 7,919.8 2,921.6 (53.5)
MEAD JOHNSON MJN US 1,996.7 319.9 (583.7)
NAVISTAR INTL NAV US 9,126.0 1,277.0 (1,622.0)
BOARDWALK REAL E BEI-U CN 2,378.3 - (45.0)
TAUBMAN CENTERS TCO US 2,572.3 - (494.8)
BOARDWALK REAL E BOWFF US 2,378.3 - (45.0)
CHOICE HOTELS CHH US 360.6 (6.3) (115.0)
SUN COMMUNITIES SUI US 1,181.4 - (111.3)
LINEAR TECH CORP LLTC US 1,615.8 742.7 (50.7)
WEIGHT WATCHERS WTW US 1,093.0 (408.6) (700.0)
DEX ONE CORP DEXO US 4,498.8 (402.9) (6,919.0)
WR GRACE & CO GRA US 3,957.9 1,177.5 (234.4)
PETROALGAE INC PALG US 7.1 (9.8) (43.8)
CABLEVISION SYS CVC US 9,325.7 (14.9) (5,143.3)
UNISYS CORP UIS US 2,711.8 320.6 (1,221.7)
IPCS INC IPCS US 559.2 72.1 (33.0)
MOODY'S CORP MCO US 2,003.3 (138.9) (911.5)
TENNECO INC TEN US 3,034.0 203.0 (14.0)
DISH NETWORK-A DISH US 8,295.3 188.7 (2,091.7)
HEALTHSOUTH CORP HLS US 1,716.1 90.6 (474.5)
UAL CORP UAUA US 19,952.0 (1,019.0) (2,887.0)
NATIONAL CINEMED NCMI US 628.2 92.8 (493.1)
REGAL ENTERTAI-A RGC US 2,588.9 (168.9) (260.7)
TALBOTS INC TLB US 825.8 (261.9) (185.6)
VECTOR GROUP LTD VGR US 735.5 240.2 (4.7)
REVLON INC-A REV US 765.8 63.9 (1,027.2)
PROTECTION ONE PONE US 571.9 (18.4) (59.1)
METALS USA HOLDI MUSA US 627.8 279.1 (43.7)
TEAM HEALTH HOLD TMH US 940.9 17.4 (92.3)
THERAVANCE THRX US 249.9 219.4 (113.0)
ARVINMERITOR INC ARM US 2,769.0 345.0 (877.0)
CHENIERE ENERGY CQP US 1,859.5 37.3 (480.3)
LIBBEY INC LBY US 776.9 128.0 (18.3)
VENOCO INC VQ US 799.5 10.6 (127.6)
DOMINO'S PIZZA DPZ US 427.6 92.8 (1,290.0)
JUST ENERGY INCO JE-U CN 1,387.1 (387.0) (356.5)
KNOLOGY INC KNOL US 641.7 30.9 (28.3)
UNITED RENTALS URI US 3,584.0 30.0 (48.0)
WORLD COLOR PRES WC CN 2,641.5 479.2 (1,735.9)
EPICEPT CORP EPCT SS 6.3 (11.1) (12.7)
WORLD COLOR PRES WCPSF US 2,641.5 479.2 (1,735.9)
CARDTRONICS INC CATM US 449.3 (36.6) (2.3)
INCYTE CORP INCY US 712.4 523.2 (102.4)
WORLD COLOR PRES WC/U CN 2,641.5 479.2 (1,735.9)
GRAHAM PACKAGING GRM US 2,126.4 187.6 (629.0)
INTERMUNE INC ITMN US 190.9 102.8 (21.3)
FORD MOTOR CO F US 197,890.0 (8,112.0) (6,515.0)
SOUTHGOBI ENERGY SGQ CN 560.7 388.8 (2.8)
COMMERCIAL VEHIC CVGI US 276.8 105.5 (10.7)
AFC ENTERPRISES AFCE US 116.6 (2.7) (18.2)
AMER AXLE & MFG AXL US 1,967.6 (0.3) (545.4)
BLUEKNIGHT ENERG BKEP US 310.7 (10.8) (142.2)
FORD MOTOR CO F BB 197,890.0 (8,112.0) (6,515.0)
SALLY BEAUTY HOL SBH US 1,531.5 366.1 (553.1)
WABASH NATIONAL WNC US 249.0 (154.6) (62.4)
CENTENNIAL COMM CYCL US 1,480.9 (52.1) (925.9)
JAZZ PHARMACEUTI JAZZ US 106.7 (31.2) (69.0)
CC MEDIA-A CCMO US 18,047.1 2,114.7 (6,844.7)
RSC HOLDINGS INC RRR US 2,669.6 (66.1) (9.8)
ACCO BRANDS CORP ABD US 1,062.7 240.1 (118.0)
CENVEO INC CVO US 1,525.8 162.5 (176.5)
WARNER MUSIC GRO WMG US 3,752.0 (557.0) (116.0)
RURAL/METRO CORP RURL US 275.4 35.2 (105.3)
SANDRIDGE ENERGY SD US 2,971.7 (33.9) (171.3)
SINCLAIR BROAD-A SBGI US 1,597.7 23.1 (202.2)
AMR CORP AMR US 25,525.0 (1,407.0) (3,892.0)
LIN TV CORP-CL A TVL US 780.6 22.9 (164.2)
MANNKIND CORP MNKD US 243.3 8.5 (100.9)
NPS PHARM INC NPSP US 140.4 95.2 (227.6)
HOVNANIAN ENT-A HOV US 2,100.2 1,222.4 (110.7)
US AIRWAYS GROUP LCC US 7,808.0 (445.0) (447.0)
GREAT ATLA & PAC GAP US 2,827.0 201.0 (396.0)
PDL BIOPHARMA IN PDLI US 358.3 (83.5) (501.1)
PALM INC PALM US 1,007.2 141.7 (6.2)
EASTMAN KODAK EK US 7,178.0 1,588.0 (53.0)
NEXSTAR BROADC-A NXST US 619.8 36.9 (176.3)
GENCORP INC GY US 1,018.7 114.6 (268.0)
QWEST COMMUNICAT Q US 19,362.0 (585.0) (1,120.0)
EXELIXIS INC EXEL US 343.4 22.9 (163.7)
VIRGIN MOBILE-A VM US 307.4 (138.3) (244.2)
VIRNETX HOLDING VHC US 2.2 (2.5) (2.4)
CONSUMERS' WATER CWI-U CN 895.2 (5.3) (254.9)
CUMULUS MEDIA-A CMLS US 323.1 (32.4) (372.3)
IDENIX PHARM IDIX US 61.0 16.8 (20.7)
ARRAY BIOPHARMA ARRY US 131.5 21.5 (109.5)
ARIAD PHARM ARIA US 65.0 8.2 (89.0)
SEALY CORP ZZ US 1,011.9 173.1 (92.3)
GLG PARTNERS-UTS GLG/U US 403.5 155.5 (285.9)
CINCINNATI BELL CBB US 2,064.3 (2.8) (654.6)
CHENIERE ENERGY LNG US 2,732.6 220.1 (432.1)
ALEXZA PHARMACEU ALXA US 46.2 (3.8) (7.1)
DENNY'S CORP DENN US 312.6 (33.8) (127.5)
WAVE SYSTEMS-A WAVX US 6.3 (2.0) (1.9)
MAGUIRE PROPERTI MPG US 3,667.7 - (857.0)
MAGMA DESIGN AUT LAVA US 123.3 (3.4) (7.2)
HUGHES TELEMATIC HUTC US 118.1 10.0 (5.4)
*********
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.
This material is copyrighted and any commercial use, resale or
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re-mailing and photocopying) is strictly prohibited without prior
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herein is obtained from sources believed to be reliable, but is
not guaranteed.
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are $25 each. For subscription information, contact Christopher
Beard at 240/629-3300.
*** End of Transmission ***