/raid1/www/Hosts/bankrupt/TCR_Public/100707.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
Wednesday, July 7, 2010, Vol. 14, No. 186
Headlines
4600 IRONTON: Case Summary & 5 Largest Unsecured Creditors
51 ELDERT: Voluntary Chapter 11 Case Summary
5TH AVENUE: Gets Court's Nod to Use Cash Collateral
5TH AVENUE: Section 341(a) Meeting Scheduled for July 30
ADAM LUCAS: Case Summary & 20 Largest Unsecured Creditors
ADAM LUCAS: Voluntary Chapter 11 Case Summary
AGRIPROCESSORS INC: Rubashkin Appeals Fraud Verdict to 8th Cir.
AIRTRAN HOLDINGS: Accepts for Payment All Tendered Notes
AMACORE GROUP: U.S. Life Ending Insurance Contracts
AMBAC FINANCIAL: To Cure NYSE Share Price Deficiency
AMERICAN WALNUT: Case Summary & 20 Largest Unsecured Creditors
ANCHORS AWEIGH: Case Summary & 15 Largest Unsecured Creditors
ANDERSON PERFORMANCE: Case Summary & Creditors List
ANGLERS BEACH: Voluntary Chapter 11 Case Summary
ARMAN ALI: Case Summary & 4 Largest Unsecured Creditors
ARVINMERITOR INC: Director Newlin Raises Stake to 36,625 Shares
ASDI INCORPORATED: Case Summary & 20 Largest Unsecured Creditors
AUTOZONE INC: Lampert's ESL, et al., Hold 38.3% of Common Stock
AUTOZONE INC: CEO Rhodes Discloses Equity Stake
BLOCKBUSTER INC: New Director Gregory Meyer Has 620,000 Shares
BLOCKBUSTER INC: Files 2009 Annual Report on Investment Plan
BP PLC: Won't Issue New Shares; Said to Be Selling Assets
BROADSTRIPE LLC: Sells Small Operation, Loses Exclusivity
BUILDERS FIRSTSOURCE: JLL Building Discloses Equity Stake
CAL GROVE: Case Summary & 20 Largest Unsecured Creditors
CALIFORNIA: Banks Pitch 'Budget-Impasse Loans' to State Workers
CALIFORNIA: Court Rules Minimum-Wage Plan Legal
CAPMARK FINANCIAL: Receives OK to Sell Loan to Angelo Gordon
CATALYST PAPER: Plans to Pay 3 Municipalities in Full
CAVE LAKES: Case Summary & 20 Largest Unsecured Creditors
CELL THERAPEUTICS: Has 11.6-Mil. Unreserved Shares
CELL THERAPEUTICS: To Retire All Remaining 2010 Convertible Debt
CHARLES HICKS: Case Summary & 15 Largest Unsecured Creditors
CHERY FATO: Case Summary & 3 Largest Unsecured Creditors
CHINA CABLECOM: Significant Losses Cue Going Concern Doubt
CONTINENTAL AIRLINES: Reports 89% Consolidated Load Factor in June
CROWN MANAGEMENT: Voluntary Chapter 11 Case Summary
D&H ASHGROVE: Case Summary & 5 Largest Unsecured Creditors
DELTA AIR: PBGC Transfers $1.995 Bil. Claims to BlueMountain
DELTA AIR: Reports May 2010 Traffic Results
DEVALIE MORRISON: Case Summary & 11 Largest Unsecured Creditors
DISABILITY ACCESS: Lynda Keeton Raises Going Concern Doubt
DISH NETWORK: CFO Olson Gets Option to Buy 25,000 Class A Shares
DONALD MARQUEZ: Case Summary & 20 Largest Unsecured Creditors
DYNASTAR PROPERTIES: Case Summary & 11 Largest Unsecured Creditors
ECKARD SALES: Case Summary & Largest Unsecured Creditor
ELOUSH TALASAZAN: Case Summary & 20 Largest Unsecured Creditors
EMERALD COAST: Case Summary & 20 Largest Unsecured Creditors
EPICENTRUM LLC: Case Summary & Largest Unsecured Creditor
EPICEPT CORPORATION: Inks Shares Sale Deal with Investors
ERIC EATON: Case Summary & 16 Largest Unsecured Creditors
ERICKSON RETIREMENT: Trustee Wins Extension for Claims Objections
EXTENDED STAY: Court Allows Fees for November to February
EXTENDED STAY: Opposes Committee Plea for Estate Representative
EXTENDED STAY: Starwood Agrees on Reduced Reimbursement
FALLIS PROPERTIES: Case Summary & 8 Largest Unsecured Creditors
FANNIE MAE: Files Form 25 to Delist Various Securities
FANNIE MAE: Releases May 2010 Monthly Summary
FIRSTFED FINANCIAL: Names Brian Argrett as Chief Executive Officer
FLYING J: Set to Obtain Confirmation of Chapter 11 Plan
FORTUNE INDUSTRIES: Gets Non-Compliance Notice From NYSE Amex
FRANK JODZIO: Case Summary & 6 Largest Unsecured Creditors
FRASER PAPERS: CCAA Stay Period Extended to July 9
FREDDIE MAC: Files Form 25 to Delist Various Securities
FREDDIE MAC: SVP Joseph Rossi Discloses Equity Stake
GAIL BALSER: Case Summary & 20 Largest Unsecured Creditors
GENE GIULIANO: Case Summary & 20 Largest Unsecured Creditors
GENERAL GROWTH: To Auction 503 Lots at Summerlin, Nevada
GENOIL INC: Files 20-F for 2009; Posts C$5.2 Million Net Loss
GLOBAL CROSSING: Launches Sr. Secured Note Exchange Offering
GLOBAL ENERGIES: Involuntary Chapter 11 Case Summary
GLOBUS MARITIME: May Seek Delisting of Shares From AIM
GREEKTOWN HOLDINGS: Former MGM Detroit COO to Head New Board
GROVE STREET: Voluntary Chapter 11 Case Summary
GSI GROUP: Announces Revenue Estimates for Second Qtr. 2010
HARRY GRADY: Case Summary & 20 Largest Unsecured Creditors
HARVEY ANDERSON: Case Summary & 20 Largest Unsecured Creditors
HAWSHON RILEY: Voluntary Chapter 11 Case Summary
HILL TOP: Case Summary & 9 Largest Unsecured Creditors
HOWARD SAVAGE: Case Summary & 20 Largest Unsecured Creditors
IMAX CORP: Amends Employment Contract With EVP for Theatre Devt.
INTEGRITY BANK: Two Former Execs Plead Guilty to Fraud Charges
IRINEO FLORES: Case Summary & 19 Largest Unsecured Creditors
IRVINE SENSORS: Inks Subscription Deals With 18 Investors
JAIME GONZALEZ: Case Summary & 20 Largest Unsecured Creditors
JEFFERSON COUNTY: Biz Leaders Form Group to Address Sewer Debt
JEFFREY COHEN: Voluntary Chapter 11 Case Summary
JESUP & LAMONT: Receives Notice From NYSE Amex
JODENE PUFF: Case Summary & 20 Largest Unsecured Creditors
JOHN GROUT: Case Summary & 20 Largest Unsecured Creditors
JOSEPH GRAVELL: Case Summary & 20 Largest Unsecured Creditors
KEVIN MCGUINNESS: Case Summary & 16 Largest Unsecured Creditors
LAKEVIEW AT CAROLINA: Case Summary & 7 Largest Unsecured Creditors
LEAP WIRELESS: District Court OKs Shareholders Suit Settlement
LEHMAN BROTHERS: Sallah & Cox Pursues Claims Against UBS
LEELAND REAL: Case Summary & 2 Largest Unsecured Creditors
LEXI DEV'T: Wants to Sell Nine Residential Condominium Units
LINCOLNSHIRE CAMPUS: Proposes to Hire A&M, Paul Rundell
LINCOLNSHIRE CAMPUS: Seeks Schedules Filing Extension
LINCOLNSHIRE CAMPUS: Seeks to Sell All Assets for $43MM
MARTIN CADILLAC: GM, Valley National Object to Cash Collateral Use
MARTIN CADILLAC: Section 341(a) Meeting Scheduled for July 28
MARTIN CADILLAC: Organizational Meeting to Form Panel on July 8
MAURICE KOESTERER: Case Summary & 20 Largest Unsecured Creditors
MEDICAL STAFFING: Files Voluntary Petition Under Chapter 11
MEDICAL STAFFING: Voluntary Chapter 11 Case Summary
MESA AIR: Settles UAL Claims in UAL Proceeding
MESA AIR: To Cut Jobs and Relocate Headquarters
MICHAEL PETERS: Case Summary & 9 Largest Unsecured Creditors
MIRIAM SANCHEZ: Case Summary & 20 Largest Unsecured Creditors
MPG OFFICE: Shareholders Elect Seven Directors
NATIONAL ENVELOPE: Balks at Cenveo's Demand for Financial Info
NELSON-GORDON: Case Summary & 20 Largest Unsecured Creditors
NORD RESOURCES: Gets 30-Day Extension to Leave TSX
NORTH GENERAL HOSPITAL: Files for Chapter 11 to Close Down
NORTH GENERAL HOSPITAL: Case Summary & 50 Largest Unsec. Creditors
OAKVIEW TIMBER: Case Summary & 12 Largest Unsecured Creditors
PACIFIC ENERGY: Wants September 9 Exclusivity Extension
PALM INC: Completes Merger Into Hewlett-Packard Unit
PARLUX FRAGRANCES: JM-CO Capital Holds Warrants to Buy Shares
PARLUX FRAGRANCES: CEO Exercises Option to Buy More Shares
PATTON PROPERTIES: Voluntary Chapter 11 Case Summary
PCS EDVENTURES: Files Form 10-K; M&K Raises Going Concern Doubt
PEOPLE PROCESSING: Case Summary & 20 Largest Unsecured Creditors
PERCY CROCKER: Voluntary Chapter 11 Case Summary
PEREZ RE: Case Summary & 19 Largest Unsecured Creditors
PETROS GROUP: Case Summary & 18 Largest Unsecured Creditors
PLATINUM ENERGY: Significant Losses Prompt Going Concern Doubt
PROSPECTOR CATERING: Voluntary Chapter 11 Case Summary
PROSPECTOR LAND: Voluntary Chapter 11 Case Summary
RADIO ONE: Shareholders Ratify Ernst & Young as Public Accountant
RIDGEWOOD CORP.: Case Summary & 20 Largest Unsecured Creditors
ROBERT WILSON: Case Summary & 11 Largest Unsecured Creditors
ROCK SOLID: Case Summary & 4 Largest Unsecured Creditors
RODCO TRUCKING: Case Summary & 20 Largest Unsecured Creditors
SABOR CUBANO: Case Summary & 20 Largest Unsecured Creditors
SALINAS INVESTMENTS: Case Summary & 16 Largest Unsecured Creditors
SEDGEBROOK INC: Proposes to Pay Prepetition Employee Wages
SEDGEBROOK INC: Seeks to Use Cash Collateral
SEDGEBROOK INC: Wants to Escrow Initial Entrance Deposits
SMITH DAIRY: Case Summary & 20 Largest Unsecured Creditors
SPECIALTY PRODUCTS: Gets Final Approval for $40-Mil. Financing
STRIKEFORCE TECH: Mark Carrao Resigns as Chief Financial Officer
SUMMIT HOTEL: Dismisses Eide Bailly as Independent Accountant
TEXAS RANGERS: New Era Seeks Payment of $106,595 for Caps Sold
TITUS TRANSPORTATION: Case Summary & Creditors Lists
TRACY PRESS: Voluntary Chapter 11 Case Summary
TRIBUNE CO: Examiner Report Expected July 26
TRIBUNE CO: Plan Hearing Pushed Back to August 30
TRIBUNE CO: Wells Fargo Proposes Claims Adjudication Protocol
TRICO MARINE: Amends Credit Agreements With Lenders
UNITED CORE: Case Summary & 3 Largest Unsecured Creditors
U.S. AEROSPACE: Inks Cooperation Agreement With Antonov Company
USG CORP: Directors Acquire Deferred Stock Units
USG CORP: Files 2009 Annual Report on Investment Plan
VALENCE TECHNOLOGY: Gets Non-Compliance Notice From NASDAQ
VEBLEN EAST: Case Summary & 20 Largest Unsecured Creditors
VISTEON CORP: Holders of 60% of Debt to Cast "No" Vote on Plan
VISTEON CORP: Court Sets Plan-Related Discovery Schedule
VISTEON CORP: Court Won't Stay Plan Agreements Pending Appeal
VISTEON CORP: Wants Plan Exclusivity Until December 15
WAPECO, LTD.: Voluntary Chapter 11 Case Summary
WARSAW BUILDING: Case Summary & 18 Largest Unsecured Creditors
WASHINGTON MUTUAL: Equity Committee Insists on Docs. From JPM
WASHINGTON MUTUAL: Files Fifth Amended Plan & Disclosure Statement
WASHINGTON MUTUAL: Wins Approval of Lumbermens Settlement
WATERFORD FUNDING: SEC Sues Founder for $145MM Fraudulent Offering
WAYNE POWELL: Case Summary & 18 Largest Unsecured Creditors
WILLIAM MEYER: Case Summary & 20 Largest Unsecured Creditors
WORLDGATE COMMS: To Terminate Lease Contract With Tremont LLC
* Upcoming Meetings, Conferences and Seminars
********
4600 IRONTON: Case Summary & 5 Largest Unsecured Creditors
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Debtor: 4600 Ironton Drive, LLC
111 SW 33rd Street
Fort Lauderdale, FL 33315
Bankruptcy Case No.: 10-26766
Chapter 11 Petition Date: July 2, 2010
Court: United States Bankruptcy Court
District of Colorado (Denver)
Judge: Michael E. Romero
Debtor's Counsel: Aaron A. Garber, Esq.
303 E. 17th Ave., Suite 500
Denver, CO 80203
Tel: (303) 832-2400
E-mail: aag@kutnerlaw.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
A list of the Company's 5 largest unsecured creditors
filed together with the petition is available for free
at http://bankrupt.com/misc/cob10-26766.pdf
The petition was signed by Lily Lorenzo, managing member.
51 ELDERT: Voluntary Chapter 11 Case Summary
--------------------------------------------
Debtor: 51 Eldert LLC
331 Rutledge Street
Brooklyn, NY 11211
Bankruptcy Case No.: 10-46346
Chapter 11 Petition Date: July 2, 2010
Court: U.S. Bankruptcy Court
Eastern District of New York (Brooklyn)
Judge: Elizabeth S. Stong
Debtor's Counsel: Leo Fox, Esq.
630 Third Avenue
New York, NY 10017
Tel: (212)867-9595
Fax: (212) 949-1857
E-mail: leofox1947@aol.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
The Debtor did not file a list of creditors together with its
petition.
The petition was signed by Max Stark, managing member.
5TH AVENUE: Gets Court's Nod to Use Cash Collateral
---------------------------------------------------
5th Avenue Partners, LLC, sought and obtained authority from the
U.S. Bankruptcy Court for the Central District of California to
use cash collateral securing debt to its prepetition lenders.
Marc J. Winthrop, Esq., at Winthrop Couchot Professional
Corporation, the attorney for the Debtor, explained that the
Debtor needs to use the cash collateral to fund its Chapter 11
case, pay suppliers and other parties.
Substantially all of the assets of the Debtor are subject to a
lien in favor of WestLB AG Bank. The lien held by WestLB secures
a debt with an outstanding balance of roughly $67 million. The
debt is secured by liens pursuant to a deed of trust recorded
against the Debtor's real property, including the Debtor's Se San
Diego Hotel and The Entertainment Facility, as well as a UCC-1
filed on June 22, 2009, against substantially all of the Debtor's
assets.
Sysco San Diego, Inc., asserts a secured claim in the amount of
$22,000 against certain food-related inventory accounts, accounts
receivable, and other food-related assets. Don Edward & Company
asserts a secured claim in the amount of approximately $82,000
against certain assets, including certain inventory and accounts,
among other non-cash collateral assets.
In exchange for using the cash collateral, the Debtor proposes to
grant the secured creditors a replacement lien in the Debtor's
post-petition cash and accounts receivable and the proceeds
thereof, to the same extent, validity, and priority as any lien
held by each respective secured creditor as of the Petition Date,
to the extent cash collateral is actually used by the Debtor. The
Debtor claims that the interests of WestLB, Sysco, and Eddward Don
in the cash collateral are adequately protected.
The Court has set a final hearing for August 4, 2010, at 9:30 a.m.
on the Debtor's request to use cash collateral.
Newport Beach, California-based 5th Avenue Partners, LLC, filed
for Chapter 11 protection on June 25, 2010 (Bankr. C.D. Calif.
Case No. 10-18667). Marc J. Winthrop, Esq., who has an office in
Newport Beach, California, assists 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.
5TH AVENUE: Section 341(a) Meeting Scheduled for July 30
--------------------------------------------------------
The U.S. Trustee for Region 16 will convene a meeting of 5th
Avenue Partners, LLC's creditors on July 30, 2010, at 10:00 a.m.
The meeting will be held at RM 1-159, 411 W Fourth Street, Santa
Ana, CA 92701.
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.
Newport Beach, California-based 5th Avenue Partners, LLC, filed
for Chapter 11 bankruptcy protection on June 25, 2010 (Bankr. C.D.
Calif. Case No. 10-18667). Marc J. Winthrop, Esq., who has an
office in Newport Beach, California, assists 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.
ADAM LUCAS: Case Summary & 20 Largest Unsecured Creditors
---------------------------------------------------------
Joint Debtors: Adam J. Lucas
Donna L. Lucas
11304 McKee Road
North Huntingdon, PA 15642
Bankruptcy Case No.: 10-24807
Chapter 11 Petition Date: July 2, 2010
Court: U.S. Bankruptcy Court
Western District of Pennsylvania (Pittsburgh)
Debtor's Counsel: Donald R. Calaiaro, Esq.
Calaiaro & Corbett, P.C.
Grant Building, Suite 1105
310 Grant Street
Pittsburgh, PA 15219-2230
Tel: (412) 232-0930
Fax: (412) 232-3858
E-mail: dcalaiaro@calaiarocorbett.com
Estimated Assets: $500,001 to $1,000,000
Estimated Debts: $1,000,001 to $10,000,000
A copy of the Debtors' list of 20 largest unsecured
creditors filed together with the petition is available for
free at http://bankrupt.com/misc/pawb10-24807.pdf
The petition was signed by the Joint Debtors.
ADAM LUCAS: Voluntary Chapter 11 Case Summary
---------------------------------------------
Joint Debtors: Adam J. Lucas
Donna L. Lucas
11304 McKee Road
North Huntingdon, PA 15642
Bankruptcy Case No.: 10-24738
Chapter 11 Petition Date: July 1, 2010
Court: U.S. Bankruptcy Court
Western District of Pennsylvania (Pittsburgh)
Debtor's Counsel: Donald R. Calaiaro, Esq.
Calaiaro & Corbett, P.C.
Grant Building, Suite 1105
310 Grant Street
Pittsburgh, PA 15219-2230
Tel: (412) 232-0930
Fax: (412) 232-3858
E-mail: dcalaiaro@calaiarocorbett.com
Estimated Assets: $500,001 to $1,000,000
Estimated Debts: $1,000,001 to $10,000,000
The Debtors did not file a list of creditors together with its
petition.
The petition was signed by the Joint Debtors.
AGRIPROCESSORS INC: Rubashkin Appeals Fraud Verdict to 8th Cir.
---------------------------------------------------------------
Michael J. Crumb at The Associated Press reports that attorneys on
Friday appealed the conviction of Sholom Rubashkin, a former Iowa
kosher meatpacking plant executive, accused of bank fraud, saying
the judge wrongly allowed jurors to hear evidence about a massive
immigration raid at the plant and the 27-year prison sentence was
unjust. The appeal was filed with the 8th U.S. Circuit Court of
Appeals in St. Louis.
Mr. Rubashkin, a former Agriprocessors Inc. vice president, was
sentenced June 22 following his conviction last fall on 86 federal
financial fraud charges. He was also ordered to pay $27 million
in restitution. Prosecutors said he intentionally deceived the
company's lender and told employees to create fake invoices that
showed inflated profits.
Mr. Rubashkin also was indicted on dozens of immigration-related
charges after 389 suspected illegal immigrants were detained
during a raid of the Postville plant in May 2008. The judge
eventually dismissed those charges, and a separate jury acquitted
Mr. Rubashkin of state child labor charges weeks before he was
sentenced on the federal charges.
According to the AP, Mr. Rubashkin's attorney, Guy Cook, said U.S.
District Court Judge Linda Reade should not have allowed evidence
about the raid and the sentence she imposed amounts to a life
sentence for the 51-year-old Rubashkin.
The AP notes Mr. Cook said evidence about the raid and immigration
charges was improperly allowed at the bank fraud trial. Mr. Cook
also said he would be challenging other issues, including a lack
of evidence to support the bank fraud charges and to show Mr.
Rubashkin had intent to profit from the alleged scheme.
About Agriprocessors Inc.
Headquartered in Postville, Iowa, Agriprocessors Inc. once
produced half the kosher beef and 40% of the kosher poultry in the
U.S. It filed for bankruptcy following a raid by immigration
authorities in May 2008 on the plant in Postville, Iowa, where
389 workers were arrested for having forged immigration
documents. The Company filed for Chapter 11 on Nov. 4, 2008
(Bankr. E.D.N.Y. Case No. 08-47472). The case, according to
McClatchy-Tribune, was transferred to Iowa. Kevin J. Nash, Esq.,
at Finkel Goldstein Rosenbloom & Nash, represented the Company in
its restructuring effort. The petition listed assets and debts of
$100 million to $500 million.
Agriprocessors' plant has since been sold to SHF Industries, which
renamed the company Agri Star. Agriprocessors' reorganization
case was converted to liquidation under Chapter 7, at the consent
of the Chapter 11 trustee appointed to take over the estate. The
Chapter 11 trustee became the trustee in the Chapter 7 case to
liquidate the Debtor's remaining assets and provide distributions
to creditors.
AIRTRAN HOLDINGS: Accepts for Payment All Tendered Notes
--------------------------------------------------------
AirTran Holdings Inc. has accepted for payment all 7% convertible
notes due 2023 validly tendered prior to 5:00 p.m., New York City
time, on July 1, 2010. This time and date represents the
expiration of the holders' right to require AirTran to repurchase
their Notes for cash.
Notes in an aggregate principal amount of $90,363,000,
representing approximately 94% of the $95,835,000 million in
aggregate principal amount outstanding, were validly tendered for
repurchase. AirTran has forwarded cash in payment of the
aggregate purchase price to the paying agent, Wilmington Trust
Company, and payment to holders of the Notes will be made promptly
by the paying agent. Any Notes not tendered and purchased
pursuant to the Put Option will remain outstanding, and the
holders thereof will be subject to the terms of the indenture
governing the Notes and the Notes. Following the Put Option, an
aggregate principal amount of $5,472,000 of the Notes remains
outstanding.
About AirTran Holdings
Headquartered in Orlando Florida, AirTran Holdings Inc. (NYSE:
AAI) -- http://www.airtran.com/-- through its wholly owned
subsidiary, AirTran Airways, Inc., operates scheduled airline
service throughout the United States and to selected international
locations. As of February 1, 2010, the Company operated 86 Boeing
B717-200 aircraft and 52 Boeing B737-700 aircraft offering
approximately 700 scheduled flights per day to 63 locations in the
United States, including San Juan, Puerto Rico, and to Orangestad,
Aruba, Cancun, Mexico, and Nassau, The Bahamas.
At March 31, 2010, the Company had total assets of $2,285,822,000
against total current liabilities of $754,073,000, long-term
capital lease obligations of $15,017,000, long-term debt of
$906,479,000, other liabilities of $110,013,000, deferred income
taxes of $4,206,000, and derivative financial instruments of
$9,349,000, resulting in $486,685,000 in stockholders' equity.
* * *
In December 2009, Moody's Investors Service raised its ratings of
AirTran Holdings' corporate family and probability of default
ratings each to Caa1 from Caa2. The 'Caa1' corporate family
rating considers the still high leverage and AirTran's exposure to
cyclical risks in the airline industry.
The airline's carries a corporate credit rating of CCC+/Stable/--
from Standard & Poor's.
AMACORE GROUP: U.S. Life Ending Insurance Contracts
---------------------------------------------------
Amacore Group Inc. received notification that United States Life
Insurance Company, the underwriter of the Company's limited
medical benefit products, was terminating its insurance contracts
in the broader marketplace, including those in place with the
Company with regard to limited medical insurance, effective
October 1, 2010 in accordance with the terms of the its contract
with the Company. The Company has accepted the termination and
is working with US Life on a transition program, which the Company
expects to result in minimal customer disruption, if any. The
Company is working to develop relationships with alternate
underwriters for its limited medical benefit programs.
About The Amacore Group
Based in Maitland, Florida, The Amacore Group, Inc., (OTC BB:
ACGI) -- http://www.amacoregroup.com/-- is primarily a provider
and marketer of healthcare related products, including healthcare
benefits, vision and dental networks, and administrative services
such as billing, fulfillment, patient advocacy, claims
administration and servicing.
The Company's balance sheet at March 31, 2010, showed $9.3 million
in total assets and $20.8 million in total liabilities, for a
total stockholders' deficit of $14.3 million.
AMBAC FINANCIAL: To Cure NYSE Share Price Deficiency
----------------------------------------------------
Ambac Financial Group, Inc., has notified the company that it has
fallen below the NYSE's continued listing standard relating to the
price of its common stock. The NYSE requires that the average
closing price of a listed company's common stock be at least $1.00
per share over a consecutive 30 trading-day period.
Under the NYSE's rules, Ambac has six months from the date of the
NYSE notice to have a closing share price and 30 trading-day
average share price of at least $1.00 in order to avoid the
delisting of its shares. During this period, Ambac's common stock
will continue to be traded on the NYSE, subject to Ambac's
compliance with other NYSE continued listing requirements. As
required by the NYSE in order to maintain the listing of its
common shares, Ambac has notified the NYSE of its intent to cure
the price deficiency.
About Ambac Financial
Headquartered in New York, Ambac Financial Group, Inc., through
its subsidiaries, provided financial guarantees and financial
services to clients in both the public and private sectors around
the world.
The Company's balance sheet as of December 31, 2009, showed
$18.886 billion in assets and $20.520 billion in debts, resulting
in a stockholders' deficit of $1.634 billion.
KPMG LLP, in New York, expressed substantial doubt about the
Company's ability to continue as a going concern. The independent
auditors noted that the significant deterioration of the
guaranteed portfolio coupled with the inability to write new
financial guarantees has adversely impacted the business, results
of operations and financial condition of the Company's operating
subsidiary. KPMG also noted that of the Company's limited
liquidity.
AMERICAN WALNUT: Case Summary & 20 Largest Unsecured Creditors
--------------------------------------------------------------
Debtor: American Walnut Company, Inc.
2801 South 2nd
Saint Joseph, MO 64501
Bankruptcy Case No.: 10-22307
Chapter 11 Petition Date: July 2, 2010
Court: U.S. Bankruptcy Court
District of Kansas (Kansas City)
Debtor's Counsel: Colin N. Gotham, Esq.
Evans & Mullinix, P.A.
7225 Renner Road, Suite 200
Shawnee, KS 66217
Tel: (913) 962-8700
Fax: (913) 962-8701
E-mail: colin@evans-mullinix.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
According to the schedules, the Debtor says that assets total
$7,886,236 while debts total $6,359,907.
A copy of the Debtor's list of 20 largest unsecured
creditors filed together with the petition is available for
free at http://bankrupt.com/misc/ksb10-22307.pdf
The petition was signed by John Worrell, president.
ANCHORS AWEIGH: Case Summary & 15 Largest Unsecured Creditors
-------------------------------------------------------------
Debtor: Anchors Aweigh Marine, Inc.
1600 North 2nd Street
Fort Pierce, FL 34950
Bankruptcy Case No.: 10-29095
Chapter 11 Petition Date: July 2, 2010
Court: United States Bankruptcy Court
Southern District of Florida (West Palm Beach)
Judge: Erik P. Kimball
Debtor's Counsel: Brad Culverhouse, Esq.
320 S Indian River Dr # 100
Ft Pierce, FL 34950
Tel: (772) 465-7572
E-mail: bradculverhouselaw@gmail.com
Estimated Assets: $0 to $50,000
Estimated Debts: $1,000,001 to $10,000,000
A list of the Company's 15 largest unsecured creditors
filed together with the petition is available for free
at http://bankrupt.com/misc/flsb10-29095.pdf
The petition was signed by Charles R. Shoup.
ANDERSON PERFORMANCE: Case Summary & Creditors List
---------------------------------------------------
Debtor: Anderson Performance Printing, Inc
654 West Spring Street
Cookeville, TN 38501
Bankruptcy Case No.: 10-06979
Chapter 11 Petition Date: July 2, 2010
Court: U.S. Bankruptcy Court
Middle District of Tennessee (Cookeville)
Debtor's Counsel: Steven L. Lefkovitz, Esq.
Law Offices Lefkovitz & Lefkovitz
618 Church Street, Suite 410
Nashville, TN 37219
Tel: (615) 256-8300
Fax: (615) 255-4516
E-mail: slefkovitz@lefkovitz.com
Estimated Assets: $500,001 to $1,000,000
Estimated Debts: $1,000,001 to $10,000,000
According to the schedules, the Debtor says that assets total
$502,597 while debts total $1,127,979.
A copy of the Debtor's list of 20 largest unsecured
creditors filed together with the petition is available for
free at http://bankrupt.com/misc/tnmb10-06979.pdf
The petition was signed by Harvey Anderson, president.
ANGLERS BEACH: Voluntary Chapter 11 Case Summary
------------------------------------------------
Debtor: Anglers Beach LLC
4800 Anglers Beach Road SE
Cass Lake, MN 56633
Tel: (319) 665-3202
Bankruptcy Case No.: 10-60815
Chapter 11 Petition Date: July 2, 2010
Court: U.S. Bankruptcy Court
District of Minnesota (Fergus Falls)
Judge: Dennis D. O'Brien
Debtor's Counsel: John A. Hatling, Esq.
Hatling Law Office
1005 Pebble Lake
Fergus Falls, MN 56537
Tel: (218) 736-2076
E-mail: hatlaw@charter.net
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
According to the schedules, the Debtor says that assets total
$2,788,037 while debts total $1,442,491.
The list of unsecured creditors filed together with its petition
does not contain any entry.
The petition was signed by John Pratt, manager.
ARMAN ALI: Case Summary & 4 Largest Unsecured Creditors
-------------------------------------------------------
Debtor: Arman Ali Apartments
508 Oak Landing Blvd
Mulberry, FL 33860
Bankruptcy Case No.: 10-16112
Chapter 11 Petition Date: July 1, 2010
Court: United States Bankruptcy Court
Middle District of Florida (Tampa)
Debtor's Counsel: Stanley J. Galewski, Esq.
Galewski Law Group PA
201 E. Kennedy Blvd, #760
Tampa, FL 33602
Tel: (813) 222-8210
Fax: (813) 222-8211
E-mail: stan@galewski.com
Scheduled Assets: $451,000
Scheduled Debts: $1,599,000
A list of the Company's 4 largest unsecured creditors
filed together with the petition is available for free
at http://bankrupt.com/misc/flmb10-16112.pdf
The petition was signed by Zahir Hussain, owner.
Debtor-affiliate that filed separate Chapter 11 petition:
Petition
Debtor Case No. Date
------ -------- ----
Zahir Hussain 10-_____ 03/24/10
ARVINMERITOR INC: Director Newlin Raises Stake to 36,625 Shares
---------------------------------------------------------------
William R. Newlin, a director at ArvinMeritor Inc., disclosed that
on July 1, 2010, he converted restricted share units in the
company to 777 shares of common stock, raising his equity stake in
the autoparts maker to 36,625 shares. He directly owns the common
shares. Mr. Newlin still owns 14,315 restricted share units.
Mr. Newlin also indirectly owns 700 common shares, which are held
by his spouse and 6,860 shares, which are owned by trust of which
his spouse is beneficiary.
About ArvinMeritor Inc.
Based in Troy, Michigan, ArvinMeritor, Inc. (NYSE: ARM) --
http://www.arvinmeritor.com/-- is a premier global supplier of a
broad range of integrated systems, modules and components to the
motor vehicle industry. The Company marks its centennial
anniversary in 2009, celebrating a long history of 'forward
thinking.' The company serves commercial truck, trailer and
specialty original equipment manufacturers and certain
aftermarkets, and light vehicle manufacturers.
The Company's balance sheet at March 31, 2010, showed
$2.769 billion in total assets and $3.646 billion in total
liabilities, for a $877.0 million stockholders' deficit.
Stockholder's deficit was at $1.166 billion at March 31, 2009.
* * *
As reported by the Troubled Company Reporter on June 14, 2010,
Standard & Poor's Ratings Services raised its corporate credit
rating on ArvinMeritor to 'B-' from 'CCC+'. The outlook is
stable. At the same time, S&P also raised its issue-level ratings
on the company's senior secured and unsecured debt.
In January 2010, Moody's Investors Service affirmed the Corporate
Family and Probability of Default ratings of ArvinMeritor at
'Caa1'.
ASDI INCORPORATED: Case Summary & 20 Largest Unsecured Creditors
----------------------------------------------------------------
Debtor: ASDI Incorporated
aka ASDI Biosciences
Analytical Services of Delaware
601 Interchange Boulevard
Newark, DE 19711
Bankruptcy Case No.: 10-12139
Chapter 11 Petition Date: July 1, 2010
Court: U.S. Bankruptcy Court
District of Delaware (Delaware)
Judge: Christopher S. Sontchi
Debtor's Counsel: John D. McLaughlin, Jr., Esq.
Ciardi Ciardi & Astin
919 North Market Street, Suite 700
Wilmington, DE 19801
Tel: (302) 658-1100
Fax: (302) 658-1300
E-mail: jmclaughlin@ciardilaw.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
A copy of the Debtor's list of 20 largest unsecured
creditors filed together with the petition is available for
free at http://bankrupt.com/misc/deb10-12139.pdf
The petition was signed by Ronald J. Paloni, president and CEO.
AUTOZONE INC: Lampert's ESL, et al., Hold 38.3% of Common Stock
---------------------------------------------------------------
Edward S. Lampert's ESL Partners, L.P., and various affiliated
funds disclosed that as of June 30, 2010, they may be deemed to
beneficially own an aggregate of 18,000,000 shares of AutoZone
Inc., which represents 38.3% of the 47,010,595 Shares outstanding
as of June 11, 2010. A full-text copy of the disclosure is
available at no charge at http://ResearchArchives.com/t/s?65e6
In a separate filing, Mr. Lampert said he may be deemed to
directly own 4,368,544 of those shares. A full-text copy
of his disclosure is available at no charge at
http://ResearchArchives.com/t/s?65e5
About AutoZone
As of February 13, 2010, in Memphis, Tenn.-based AutoZone, Inc.
(NYSE:AZO) sells auto and light truck parts, chemicals and
accessories through 4,289 AutoZone stores in 48 U.S. states plus
the District of Columbia and Puerto Rico and 202 stores in Mexico.
AutoZone is a retailer and distributor of automotive replacement
parts and accessories in the United States. AutoZone does not
derive revenue from automotive repair or installation.
As of February 14, 2010, the Company had $5,424,992,000 in total
assets, including $2,648,713,000 in total current assets; against
total current liabilities of $2,749,324,000; debt of
$2,774,700,000; and other liabilities of $322,639,000; resulting
in stockholders' deficit of $421,671,000.
AUTOZONE INC: CEO Rhodes Discloses Equity Stake
-----------------------------------------------
William C. Rhodes III, chairman, president and CEO of AutoZone
Inc., disclosed that he may be deemed to directly own 13,650
Company shares after acquiring 26 shares in separate transactions
on June 30, 2010. He acquired the shares pursuant to AutoZone,
Inc. Fourth Amended and Restated Executive Stock Purchase Plan. A
full-text copy of Mr. Rhodes' disclosure is available at no charge
at http://ResearchArchives.com/t/s?65e8
Prior to that, Mr. Rhodes disclosed disposing of Company shares in
several transactions on June 28 and 29. A full-text copy of Mr.
Rhodes' disclosures is available at no charge at:
http://ResearchArchives.com/t/s?65e9
http://ResearchArchives.com/t/s?65ea
Mr. Rhodes also holds shares as custodian for his children.
William W. Graves, AutoZone's senior vice president, acquired 18
shares also pursuant to the Stock Purchase Plan, raising his stake
to 1,605 shares.
Jon A. Bascom, senior vice president and CIO, acquired on June 16,
2010, non-qualified stock options, which gives him the right to
buy 1,000 Company shares. He now has options to acquire 5,000
shares. That same day, he exercised such options and acquired
1,000 shares, raising his stake to 3,760. Then he sold off 1,000
shares, cutting that stake to 2,760 shares.
A full-text copy of Mr. Bascom's disclosure is available at no
charge at:
http://ResearchArchives.com/t/s?65e7
About AutoZone
As of February 13, 2010, in Memphis, Tenn.-based AutoZone, Inc.
(NYSE:AZO) sells auto and light truck parts, chemicals and
accessories through 4,289 AutoZone stores in 48 U.S. states plus
the District of Columbia and Puerto Rico and 202 stores in Mexico.
AutoZone is a retailer and distributor of automotive replacement
parts and accessories in the United States. AutoZone does not
derive revenue from automotive repair or installation.
As of February 14, 2010, the Company had $5,424,992,000 in total
assets, including $2,648,713,000 in total current assets; against
total current liabilities of $2,749,324,000; debt of
$2,774,700,000; and other liabilities of $322,639,000; resulting
in stockholders' deficit of $421,671,000.
BLOCKBUSTER INC: New Director Gregory Meyer Has 620,000 Shares
--------------------------------------------------------------
Newly minted director Gregory S. Meyer disclosed holding 620,000
shares of Blockbuster Class A common stock and 25,000 shares of
Blockbuster Class B common stock as of June 24, 2010.
On June 24, 2010, the Company entered into a settlement agreement
with Mr. Meyer, a stockholder of the Company who had nominated
himself and was soliciting proxies with respect to his election to
the Company's Board of Directors at the 2010 annual meeting.
Pursuant to the Settlement Agreement, Mr. Meyer withdrew his
nomination and was appointed to the Board on June 24 following the
annual meeting.
Kathleen Dore and Joseph J. Fitzsimmons, who were also appointed
as directors at the June 24 meeting, filed separate Form 3s with
the Securities and Exchange Commission disclosing that they do not
hold any Blockbuster shares.
As reported by the Troubled Company Reporter on July 2, 2010,
Blockbuster entered into a Forbearance Agreement with certain of
its senior secured noteholders that provides the Company with
additional time and flexibility as it continues to engage in
productive discussions with certain of these noteholders and
strategic parties regarding various recapitalization
opportunities.
Blockbuster's Forbearance Agreement is with noteholders who have,
collectively, represented that they hold approximately 70% of the
Company's 11.75% senior secured notes due 2014. The noteholders
executing it have agreed, through August 13, 2010, from exercising
certain rights and remedies they may have under the indenture and
related collateral documents arising from the failure by
Blockbuster to make the payments owing by it under the senior
secured notes on July 1, 2010. Blockbuster has determined that
it will not make the payments due on the senior secured notes on
July 1, 2010, constituting a $23.9 million amortization payment
(inclusive of a 6.0% redemption premium) and an $18.5 million
interest payment. By taking this action, Blockbuster will
preserve $42.4 million in incremental liquidity.
About Blockbuster Inc.
Blockbuster Inc. is a global provider of rental and retail movie
and game entertainment. It has a library of more than 125,000
movie and game titles. The company may be accessed worldwide at
http://www.blockbuster.com/
Blockbuster's quarterly report on Form 10-Q showed a net loss of
$65.4 million on $939.4 million of revenue for the 13 weeks ended
April 4, 2010, compared with net income of $27.7 million on $1.086
billion of revenue for the 13 weeks ended April 5, 2009.
The Company's balance sheet as of April 4, 2010, showed
$1.319 billion in assets and $1.693 billion of liabilities, for a
stockholders' deficit of $374.2 million.
PricewaterhouseCoopers LLP, in Dallas, expressed substantial doubt
about the Company's ability to continue as a going concern
following Blockbuster's 2009 results.
BLOCKBUSTER INC: Files 2009 Annual Report on Investment Plan
------------------------------------------------------------
Blockbuster Inc. filed with the Securities and Exchange Commission
an annual report on Form 11-K for the Blockbuster Investment Plan
for the year ended December 31, 2009. Net assets available for
benefits at December 31 total $82,754,030. A full-text copy of
the Investment Plan is available at no charge at:
http://ResearchArchives.com/t/s?65eb
As reported by the Troubled Company Reporter on July 2, 2010,
Blockbuster entered into a Forbearance Agreement with certain of
its senior secured noteholders that provides the Company with
additional time and flexibility as it continues to engage in
productive discussions with certain of these noteholders and
strategic parties regarding various recapitalization
opportunities.
Blockbuster's Forbearance Agreement is with noteholders who have,
collectively, represented that they hold approximately 70% of the
Company's 11.75% senior secured notes due 2014. The noteholders
executing it have agreed, through August 13, 2010, from exercising
certain rights and remedies they may have under the indenture and
related collateral documents arising from the failure by
Blockbuster to make the payments owing by it under the senior
secured notes on July 1, 2010. Blockbuster has determined that
it will not make the payments due on the senior secured notes on
July 1, 2010, constituting a $23.9 million amortization payment
(inclusive of a 6.0% redemption premium) and an $18.5 million
interest payment. By taking this action, Blockbuster will
preserve $42.4 million in incremental liquidity.
About Blockbuster Inc.
Blockbuster Inc. is a global provider of rental and retail movie
and game entertainment. It has a library of more than 125,000
movie and game titles. The company may be accessed worldwide at
http://www.blockbuster.com/
Blockbuster's quarterly report on Form 10-Q showed a net loss of
$65.4 million on $939.4 million of revenue for the 13 weeks ended
April 4, 2010, compared with net income of $27.7 million on $1.086
billion of revenue for the 13 weeks ended April 5, 2009.
The Company's balance sheet as of April 4, 2010, showed
$1.319 billion in assets and $1.693 billion of liabilities, for a
stockholders' deficit of $374.2 million.
PricewaterhouseCoopers LLP, in Dallas, expressed substantial doubt
about the Company's ability to continue as a going concern
following Blockbuster's 2009 results.
BP PLC: Won't Issue New Shares; Said to Be Selling Assets
---------------------------------------------------------
James Herron at Dow Jones Newswires reports that BP PLC dismissed
speculation Tuesday that it was looking for a white-knight
investor to take a large stake in the company, saying it won't
issue new equity to raise money to cover the costs of the Gulf of
Mexico oil-well disaster. Confirmation that BP isn't planning an
offering that would dilute the value of existing shares gave the
stock a boost.
Dow Jones says a BP spokeswoman said Tuesday that the company
would welcome any existing shareholders or new investors who want
to buy already-listed shares, but no new shares will be offered.
Terry Macalister, writing for Guardian News in the U.K., reported
on Sunday that BP is holding talks with the Kuwait Investment
Office about taking a much larger stake of the oil company in an
effort to ward off a takeover by a foreign rival, as well as
raising additional funds. Guardian said the Middle East sovereign
wealth fund is a significant shareholder, with a 1.75% stake, but
BP would like it to increase its share, perhaps to as much as 10%.
Guardian said the move would raise valuable cash, about GBP6
billion, that BP needs to cope with the mounting liabilities from
the oil spill which some estimate could eventually reach US$70
billion or GBP58 billion.
Guardian added that a big strategic investor would also make it
harder for a rival such as ExxonMobil or China National Offshore
Oil Company to win control of BP through a hostile bid. A number
of potential bidders are rumored to be circling BP to take
advantage of its weakened state.
Last week, Mark Kleinman, writing for Sky News, said BP has kicked
off talks with China National Offshore Oil Corporation, about
selling part or all of its $9 billion stake in Argentine oil
producer Pan American Energy. Mr. Kleinman said the talks are at
an early stage. He added that the 60% stake in Pan American was
among the assets which BP was looking to sell as part of efforts
to shore up its finances following the Gulf of Mexico oil spill.
He also said other BP assets in Latin America, particularly in
Colombia and Venezuela, may be sold too.
Mr. Kleinman said BP declined to comment on the CNOOC talks.
As reported by the Troubled Company Reporter on July 6, 2010, Dow
Jones Newswires' Carol Dean reported that a person familiar with
the situation said Monday BP has increased its standby loan to up
to around $9 billion as more banks join the group of lenders
supporting the company against possible claims related to the oil
spill in the Gulf of Mexico. The source said the standby loans
provide BP with immediate access to liquidity to deal with the
cost of the oil spill and meet its liabilities while BP considers
longer-term funding options.
The source told Dow Jones around eight or nine banks have agreed
to lend around $1 billion each to BP on a bilateral basis. The
source said the bank lenders likely include Barclays PLC, BNP
Paribas SA, Citigroup Inc., Banco Santander SA, HSBC Holdings PLC,
Royal Bank of Canada, Royal Bank of Scotland Group PLC and Societe
Generale SA. The loans have a one-year maturity with a one-year
extension option.
As reported by the TCR on June 17, 2010, BP reached an agreement
with the Obama administration to allocate $20 billion to cover
Gulf of Mexico oil spill claims. Liabilities aren't capped at $20
billion.
The TCR on July 2 said experts looking at a hypothetical
bankruptcy filing by BP on an ABI media teleconference on June 29
said that BP has several options to explore in dealing with the
worst environment disaster in U.S. history, but the oil giant may
consider bankruptcy if it faces a never-ending flow of claims.
The Houston Chronicle's Tom Fowler said early last month that BP
had dismissed talk that it might seek Chapter 11 bankruptcy
protection in the face of falling stock prices and threats from
government officials to force the oil giant to pay more in costs
related to the massive Gulf of Mexico oil spill. "We
categorically deny that we have taken advice on Chapter 11
proceedings," a company spokesman told the Chronicle, according to
Mr. Fowler.
About BP Plc
BP Plc -- http://www.bp.com/-- is one of the world's largest
energy companies, providing its customers with fuel for
transportation, energy for heat and light, retail services and
petrochemicals products for everyday items.
Bloomberg's Businessweek notes BP represents 5.6% of the FTSE 100
Index, the second biggest weighting of the top U.K.-listed
companies behind London-based bank HSBC Holdings Plc. BP also
represents the biggest portion of the FTSE 350 Oil & Gas Producers
Index at 31%, and the MSCI EAFE/Energy Index at 16%.
BROADSTRIPE LLC: Sells Small Operation, Loses Exclusivity
---------------------------------------------------------
Bill Rochelle at Bloomberg News reports that Broadstripe LLC
received permission from the Bankruptcy Court to sell several
small money-losing cable systems in the Washington, D.C., area for
$1,200 to New Day Broadband LLC. Broadstripe said there were no
other offers except from buyers wanting to purchase other
operations the company doesn't want to sell. Broadstripe added
that if the cable systems aren't sold, it would incur $273,000 in
costs to tear down the systems in compliance with local
regulations.
Mr. Rochelle also notes that Broadstripe has lost its exclusive
right to propose a Chapter 11 plan. Any creditor can now file a
plan, because Broadstripe has been in Chapter 11 more than 18
months. Changes in bankruptcy law enacted by Congress in 2005
prohibit a bankruptcy judge from giving a company exclusivity for
more than 18 months. The Company has been unable to confirm a
plan in view of a suit where the unsecured creditors' committee
contends that secured lenders' claims should be subordinated or
recharacterized as equity.
About Broadstripe LLC
Headquartered in Chesterfield, Missouri, Broadstripe LLC --
http://www.broadstripe.com/-- provides videos and telephone
services to consumers and business in Maryland, Michigan,
Washington and Oregon. The Company and five of its affiliates
filed for Chapter 11 protection on January 2, 2009 (Bankr. D. Del.
Lead Case No. 09-10006). Attorneys at Ashby & Geddes, and Gardere
Wynne Sewell LLP represent the Debtors in their restructuring
efforts. The Debtors tapped FTI Consulting Inc. as their
restructuring consultant, and Epiq Bankruptcy Consultants LLC as
their claims agent. In its petition, Broadstripe listed assets
and debts between $100 million and $500 million.
BUILDERS FIRSTSOURCE: JLL Building Discloses Equity Stake
---------------------------------------------------------
JLL Building Holdings, LLC, is the direct beneficial owner of
24,344,584 shares of common stock, par value $0.01 per share, of
Builders FirstSource, Inc.
JLL Partners Fund V, L.P., is the sole member of JLL Building
Holdings, LLC; JLL Associates V, L.P. is the general partner of
JLL Partners Fund V, L.P.; and JLL Associates G.P. V, L.L.C., is
the general partner of JLL Associates V, L.P.
JLL Partners Fund V, L.P., JLL Associates V, L.P., and JLL
Associates G.P. V, L.L.C., may be deemed to be the indirect
beneficial owners of 24,344,584 shares of common stock of the
Company.
Each of these persons disclaims beneficial ownership of the
securities.
Headquartered in Dallas, Texas, Builders FirstSource Inc. --
http://www.bldr.com/-- is a supplier and manufacturer of
structural and related building products for residential new
construction. The company operates in 9 states, principally in
the southern and eastern United States, and has 55 distribution
centers and 51 manufacturing facilities, many of which are located
on the same premises as its distribution facilities.
The Company's balance sheet at March 31, 2010, showed
$491.0 million in total assets and $282.4 million in total
liabilities, for a $218.6 million stockholders' equity.
* * *
According to the Troubled Company Reporter on Jan. 28, 2010,
Standard & Poor's Ratings Services raised its corporate credit
rating on Dallas-based Builders FirstSource Inc., a manufacturer
and supplier of building products for new residential
construction, to 'CCC+' from 'SD'. The outlook is positive.
CAL GROVE: Case Summary & 20 Largest Unsecured Creditors
--------------------------------------------------------
Debtor: Cal Grove Rentals, Inc.
456 Glenoaks Blvd.
San Fernando, CA 91340
Bankruptcy Case No.: 10-18080
Chapter 11 Petition Date: July 2, 2010
Court: United States Bankruptcy Court
Central District Of California (San Fernando Valley)
Judge: Geraldine Mund
Debtor's Counsel: Jacqueline L. Rodriguez, Esq.
10250 Constellation Blvd Ste 1700
Los Angeles, CA 90067
Tel: (310) 229-1234
E-mail: jlr@lnbrb.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
A list of the Company's 20 largest unsecured creditors
filed together with the petition is available for free
at http://bankrupt.com/misc/cacb10-18080.pdf
The petition was signed by Guadalupe Gomez, president.
CALIFORNIA: Banks Pitch 'Budget-Impasse Loans' to State Workers
---------------------------------------------------------------
Bloomberg News reports that banks and credit unions will offer
zero-interest loans and other assistance to the 200,000 California
government employees who may see their pay reduced to the minimum
wage as a result of the state's budget stalemate.
According to the report, the Golden 1 Credit Union, a lender that
caters to state workers, announced it will offer zero-interest
loans to customers whose pay falls because of the stalled spending
plan. About 1,100 legislative aides and gubernatorial appointees
whose pay was stopped on July 1 already have access to so-called
budget-impasse loans, said Donna A. Bland, the company's chief
financial officer.
As reported by the TCR in May 2010, California Governor Arnold
Schwarzenegger proposed budget cuts, including eliminating the
state's main welfare program for families, to close a
$19.1 billion budget gap for the year starting July 1.
The $83.4 billion plan calls for $12.4 billion in spending
reductions, $3.4 billion in additional federal aid and $3.4
billion in fund shifts, fees and assessments. This year's budget
was $86.4 billion.
CALIFORNIA: Court Rules Minimum-Wage Plan Legal
-----------------------------------------------
Bloomberg News reports that a California court ruled that state
Controller John Chiang must comply with an order by Republican
Governor Arnold Schwarzenegger to slash the pay of almost 200,000
state workers to minimum wage until a budget is passed.
California's 3rd Appellate District court in Sacramento rejected
an appeal Mr. Chiang filed after Gov. Schwarzenegger's Department
of Personnel Administration in 2008 ordered him to cut state
workers' pay to the federal minimum wage, currently $7.25 per
hour. Mr. Chiang, a Democrat, refused to carry out the order at
the time, saying it was illegal and that his office wasn't
equipped to make such a salary reduction.
As reported by the TCR in May 2010, California Governor Arnold
Schwarzenegger proposed budget cuts, including eliminating the
state's main welfare program for families, to close a $19.1
billion budget gap for the year starting July 1.
The $83.4 billion plan calls for $12.4 billion in spending
reductions, $3.4 billion in additional federal aid, and $3.4
billion in fund shifts, fees and assessments. This year's budget
was $86.4 billion.
CAPMARK FINANCIAL: Receives OK to Sell Loan to Angelo Gordon
------------------------------------------------------------
U.S. Bankruptcy Judge Christopher Sontchi authorized the Debtors
to sell the Georgetown Park Partners, LLC Loan to Angelo Gordon
Real Estate Inc., following the auction held June 24, 2010.
"The price was $6 million more than the starting price," reports
By Peg Brickley of Dow Jones.
Judge Sontchi concluded that the Debtors conducted the Auction
fairly, reasonably and in good faith. The deal is expected to
close next week.
Vornado Realty, L.P., submitted the second highest and best bid
and was designated as the Back-Up Bidder.
All objections to the Sale of the Georgetown Loan were overruled.
Sale Objections
A. TRECAP
Prior to the entry of the Court's order, TRECAP Commercial Realty
Partners II, LP; TRECAP Commercial Realty Partners IIA (REIT)
Inc.; and Commercial Realty Manager IIA (REIT) Inc. contended
that the motion to sell Georgetown Park Partners, LLC Loan to
Angelo Gordon Real Estate Inc cannot be approved because
Georgetown Park lacks authority to enter in the settlement
agreement. TRECAP relates that before Georgetown Park can enter
into any non-ordinary course agreement or settle any outstanding
claims, its consent must be obtained. TRECAP, however, has not
consented to the proposed settlement agreement.
The Court, on March 4, 2010, entered its order approving the sale
of the REEG Business to TRECAP Partners, LLC. Pursuant to the
sale, TRECAP Partners II, TRECAP Partners IIA, and TRECAP Manager
succeeded to the rights and interest of Capmark Partners II,
Capmark Partners IIA, and Capmark Manager in Georgetown Park and
the Limited Liability Company Agreement. As a result, TRECAP
Partners II, TRECAP Partners IIA, and TRECAP Manager are the
members of Georgetown Park, while WDC Manager remains its
managing member.
The Debtors sought and obtained leave to file a late reply to the
objection of TRECAP.
In their Reply, the Debtors asked the Court to overrule TRECAP's
objection, contending that the Bankruptcy Court is not the forum
for equity holders to resolve their internal and intramural
disputes with and against the entity in which they are an
investor and the managing member of that entity. According to
the Debtors, TRECAP, in its capacity as an equity holder in
Georgetown Park, is not a creditor of the Debtors and has no
direct relationship or direct financial stake in the outcome of
the Bankruptcy cases. The Debtors asserted that TRECAP is not a
party-in-interest and has no standing in the bankruptcy
proceedings.
B. EastBanc
EastBanc, Inc., averred that the proposed sale order improperly
impair its interest in the Mall.
In 1998, EastBanc entered into a contract with Herbert Miller and
an affiliate of Mr. Miller's, Georgetown Park Associates II,
Limited Partnership. In that contract, Mr. Miller agreed to
exercise his rights under a Right of First Offer on the
Georgetown Park Mall in favor of EastBanc, so that EastBanc could
acquire the Mall.
When, in 2006, Mr. Miller made clear that he intended to acquire
the Mall for his own benefit, EastBanc filed suit to enforce its
right to acquire the Mall.
Although in June 2006 the D.C. Superior Court granted summary
judgment in favor of the defendants, the D.C. Court of Appeals
reversed the decision, holding that, as a matter of law, EastBanc
and Mr. Miller had entered into a valid and enforceable contract
that obligated Mr. Miller to assist EastBanc in its efforts to
acquire the Mall.
While that case was pending on appeal, several significant events
occurred. EastBanc became aware that Mr. Miller and GPA II were
looking for business partners to help them acquire the Mall from
Georgetown Park Associates. In light of this development and to
preserve its rights to the Mall, on October 17, 2006, EastBanc
recorded a lis pendens with respect to the Mall.
Mr. Miller and GPA II assigned the Right of First Offer to
Georgetown Park Partners LLC, another entity affiliated with Mr.
Miller that was created for the purpose of acquiring the Mall.
GPP actually acquired the Mall, despite EastBanc's claims in
February 2007. The purchase price of the Mall was approximately
$84 million. EastBanc asserted that Capmark was deeply involved
in GPP's purchase of the Mall. According to EastBanc, Debtor
Capmark Finance provided debt financing for the purchase of the
Mall in the amount of $70,400,000, and obtained an attendant
security interest in the Mall to secure GPP's obligation to repay
the loan.
Consequently, EastBanc sought and obtained the Court's authority
to file an Amended Objection after obtaining additional facts.
In the Amended Objection, EastBanc related that it has become
clear that neither the Court nor other parties were made aware of
a crucial fact that the agreement by the stalking-horse bidder,
Angelo Gordon Real Estate, Inc., to produce withdrawals of proofs
of claim by the Borrower, Georgetown Park Partners LLC, and an
affiliated entity, was likely worthless because Georgetown Park
was actually not authorized to withdraw those proofs of claim.
According to EastBanc, a timely disclosure of that fact would
have significantly altered the conduct of the auction for the
Loan, and in fact, JBG/Georgetown Park, LLC, one of the bidders
of that auction, has since indicated to the Debtors that it would
have bid more had it been made aware of that fact and wishes to
increase the amount of its bid in light of this disclosure.
Because of the Debtors' and Angelo Gordon's failure to disclose a
material fact to bidders prior to the auction and other
circumstances that occurred at the auction, the Court can have no
confidence that the auction in fact maximized value to the
estate, EastBanc asserted.
JBG/Georgetown Park, LLC, filed with the Court a joinder to
EastBanc's Amended Objection. Specifically, JBG asked the Court
to:
(i) direct the Debtors to resume the Auction to permit
additional bidding by JBG, Angelo Gordon and Vornado; and
(ii) authorize immediate and expedited discovery of Angelo
Gordon.
J. Kohan Supplements Affidavit
Jonathan B. Kohan, vice president/senior asset manager of Debtor
Capmark Finance Inc., maintained that he supports the Debtors'
request for approval of the sale as, in his opinion:
(i) the Sale was fairly and thoroughly marketed, pursuant to
the bidding process approved by the Court;
(ii) the Debtors conducted a robust and fair auction at which
three bidders including Angelo Gordon Real Estate Inc.
actively participated;
(iii) the proposed Sale represents the highest and best offer
during the auction;
(iv) the Purchase Agreement was negotiated fairly and at arm's-
length and entered into in good faith; and
(v) the Sale represents the sound exercise of business
judgment.
Objections Overruled
Judge Sontchi held that until the Debtors' bankruptcy cases are
closed or dismissed, the Court will retain exclusive jurisdiction
to interpret, construe, and enforce the provisions of the
Purchase agreement, the Sale Order and the Settlement in all
respects, and to hear and determine any and all disputes between
the Debtors or Purchaser relating to the Purchase Agreement or
the Sale Order and between the Debtors and the Miller Parties --
WDC Holdings, LLC, WDC Georgetown Park Manager LLC, WDC
Georgetown Park LLC and Herbert Miller -- relating to the
Settlement.
The Court held that no provision of the Order will prejudice or
diversely affect the claims, interests, or defenses of each of
EastBanc Inc. and Anthony Lanier in respect of Designated
Defenses. Mr. Lanier had earlier argued that he was unfairly
deprived of his right to buy the mall by Herbert Miller, who owns
part of the company that owns the mall.
At the auction, says Dow Jones, Mr. Lanier's EastBanc Inc. backed
private-equity real-estate investor JBG Co. -- who was a failed
bidder. However, Judge Sontchi rebuffed the bid to reopen the
auction to let JBG take another shot at buying the mall.
The Sale, which was approved after more than five hours of court
arguments leaves Mr. Miller in an alliance with Angelo Gordon,
but at odds with affiliates of TRECAP Commercial Realty Partners
-- a group of investors in the company that owns the mall, notes
the report.
As part of its arrangements with Angelo Gordon, Mr. Miller agreed
to extinguish $19 million worth of claims filed in Capmark's
bankruptcy case.
Joseph Svec, advertising clerk of the publisher of The Wall
Street Journal, discloses that a notice of Sale and Hearing of
Georgetown Park Partners, LLC Loan has been published in the news
paper on June 7, 2010.
About Capmark Financial
Based in Horsham, Pennsylvania, Capmark Financial Group Inc. --
http://www.capmark.com/-- is a diversified company that provides
a broad range of financial services to investors in commercial
real estate-related assets. Capmark has three core businesses:
lending and mortgage banking, investments and funds management,
and servicing. Capmark operates in North America, Europe and
Asia. Capmark has 1,000 employees located in 37 offices
worldwide.
On October 25, 2009, Capmark Financial Group Inc. and certain of
its subsidiaries filed voluntary petitions for relief under
Chapter 11 (Bankr. D. Del. Case No. 09-13684)
Capmark's financial advisors are Lazard Freres & Co. LLC and
Loughlin Meghji + Company. Capmark's bankruptcy counsel is Dewey
& LeBoeuf LLP. Richards, Layton & Finger, P.A., serves as local
counsel. Beekman Advisors, Inc., is serving as strategic advisor.
KPMG LLP is tax and accounting advisor. Epiq Bankruptcy
Solutions, LLC, is the claims and notice agent.
Capmark has total assets of US$20 billion against total debts of
US$21 billion as of June 30, 2009.
Since filing in Chapter 11, Capmark completed three sales to
generate more than $1 billion cash. Berkshire Hathaway Inc. and
Leucadia National Corp. bought most of the business for
$468 million.
Bankruptcy Creditors' Service, Inc., publishes Capmark Financial
Bankruptcy News. The newsletter tracks the Chapter 11 proceedings
of Capmark Financial Group Inc. and its units.
(http://bankrupt.com/newsstand/or 215/945-7000)
CATALYST PAPER: Plans to Pay 3 Municipalities in Full
-----------------------------------------------------
Catalyst Paper said it will pay its full municipal property tax
bill in three of the four municipalities that host its BC paper
mills, but is seeking leave from the Supreme Court of Canada to
appeal a recent court decision involving the fourth municipality.
Catalyst said that it will pay more than $15 million in municipal
taxes to Powell River, Campbell River, Port Alberni and the
District of North Cowichan.
In light of its continued pursuit of a legal remedy regarding the
North Cowichan tax levy, Catalyst will pay $1.5 million to that
municipality in addition to all property taxes collected by the
municipality on behalf of other governments. A legal appeal has
also been filed regarding Campbell River's regional district rates
which ignore last year's BC Supreme Court order setting aside as
illegal certain rates applied by the municipality.
Taxes Levied
------------
North Cowichan $6.5 million
Port Alberni $5.2 million
Campbell River $4.8 million
Powell River $3.0 million
"Since Catalyst launched legal actions in 2009, a growing number
of organizations have championed the need for a more sensible BC
municipal tax structure," said Kevin J. Clarke, president and
chief executive officer. "Competitive taxation keeps companies and
communities viable in the post-recession economy. This helps
preserve existing jobs and it creates the right conditions for new
ones."
Last year, the Business Council of BC labelled the situation a
"municipal taxation crisis" and said it would "press for an
overhaul of BC's broken business property tax regime."
Recognition of the made-in-BC municipal taxation crisis for
industrial taxpayers includes British Columbia's small and medium-
sized businesses. The June 2010 report on BC property tax
fairness from the Canadian Federation of Independent Business
declares BC's municipalities "have become tax-and-spend regimes"
and "local economies and jobs are at stake if they don't act."
The BC Chamber of Commerce is now calling for change on municipal
taxation, saying, "There are still many local governments who fail
to realize who employs their tax paying residents, and that as a
consequence, they represent the single largest impediment to
economic growth and a vibrant and prosperous community." And the
Canadian Taxpayers Federation is now encouraging the formation of
ratepayer associations in BC municipalities that are "focused on a
single issue -- curbing local government expenditures to reduce
or, at least, restrain, the growth of property taxes and user
fees."
"What began as a trickle last year has turned into a tidal wave,"
said Clarke. "BC aims to attract business with a host of
provincial benefits. But to operate here long-term, a business
must eventually sink roots into a municipality, and that's when
the decision to locate in BC can come back to haunt a company and
its local, national and international investors. That's because
BC's on-the-ground industrial taxation levels are investment
killers, job killers, and community killers, and jurisdictions
competing with BC know it."
Premier Campbell has launched a review of major industrial
property assessment and taxation that is due to report its results
and recommendations in September. "The results of this review
will have to be game-changing for BC," said Clarke. "A report
that delays, denies or that fails to produce results that enable
BC industry to compete in the post-recession global economy would
erase all the provincial government's investment-attraction
efforts to date."
In the meantime, Powell River and Catalyst reached an innovative
agreement in April to achieve twin objectives of reducing Class 4
taxation and reducing future municipal service costs. Under the
agreement, the City committed that mill taxes would not exceed
$2.3 million for five years. The City and Catalyst also agreed to
jointly pursue environmental permit amendments and related
arrangements that would enable a 20-year service agreement valued
at $750,000 annually in the first five years, under which Catalyst
will treat the City's municipal waste.
"The agreement with Powell River shows that civic leadership can
lead to real progress on what is clearly a shared cost problem and
we hope it can be a model for other municipalities," Mr. Clarke
noted.
About Catalyst Paper
Based in Richmond, British Columbia, in Canada, Catalyst Paper
Corporation (TSX:CTL) manufactures diverse specialty mechanical
printing papers, newsprint and pulp. Its customers include
retailers, publishers and commercial printers in North America,
Latin America, the Pacific Rim and Europe. With six facilities
located in British Columbia and Arizona, Catalyst has a combined
annual production capacity of 2.5 million tonnes.
* * *
In mid-March 2010, Standard & Poor's Ratings Services lowered its
long-term corporate credit rating on Catalyst Paper to 'SD'
(selective default) from 'CC'. Given the weak outlook for the
company's specialty paper and newsprint segments, S&P expects
Catalyst to continue to face challenging market conditions in
2010.
Moody's Investors Service also downgraded Catalyst's Corporate
Family Rating to Caa1 from B3 while revising the Probability of
Default Rating to Caa1/LD from Caa3, with the "/LD" suffix
signaling a "limited default". Catalyst's CFR downgrade
anticipates a marked deterioration in the company's financial
performance over the coming year, with significant EBITDA erosion
compared to 2009 levels and negative free cash flow generation.
CAVE LAKES: Case Summary & 20 Largest Unsecured Creditors
---------------------------------------------------------
Debtor: Cave Lakes Canyon, LLC
7272 S. El Capitan Way, #2
Las Vegas, NV 89148
Bankruptcy Case No.: 10-22419
Chapter 11 Petition Date: July 1, 2010
Court: United States Bankruptcy Court
District of Nevada (Las Vegas)
Judge: Bruce A. Markell
Debtor's Counsel: Neil J. Beller, Esq.
7408 W. Sahara Ave.
Las Vegas, NV 89117
Tel: (702) 368-7767
Fax: (702) 368-7720
E-mail: nbeller@njbltd.com
Scheduled Assets: $18,283,110
Scheduled Debts: $4,122,607
The petition was signed by George LaForge, manager.
Debtor's List of 20 Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
------ --------------- ------------
TC Engineering Engineering services, $124,349
PO Box 55 ziplines, plans, water
Kanab, UT 84741
Bighorn Archaeology Trenching $50,000
Consultants
3790 Nicholas Drive
Santa Clara, UT 84765
R&W Excavating $48,789
5880 N Latson Rd
Howell, MI 48855
Max and Marcella Berry Loan. No equity $20,000
interest, no
collateral
Randell Aleman Loans $18,633
Morley & McConkie Property $15,000
appraisals
Kane County Treasurer $12,081
Wells Fargo Business Business $9,512
Card - VISA expenses
Antonio Rodriguez $7,200
Encore Management Management services $6,250
Services, LLC
Commercial 360 $5,250
Wells Fargo Business $2,704
Card - VISA
Stagecoach Depot $2,659
Green Robert & Operating agreement $1,950
Rassmussen PLLC
Salomen Alvarez Wages $1,725
Settler's Cove Auto repair $1,600
Diesel Repair
Beehive Rental & Spark Plugs $1,567
Sales LLC
Beau Smith Welding & $1,280
Fabrication
American National Insurance $1,215
Insurance
A Storage on Wheels Storage Unit Rental $811
CELL THERAPEUTICS: Has 11.6-Mil. Unreserved Shares
--------------------------------------------------
Cell Therapeutics Inc. provides information at request from
CONSOB. As of June 29, 2010, the Company has 11.6 million
unreserved shares and 74.9 million reserved shares.
The Company's unreserved shares are available for financings,
subject to, among other things, approval by the Company's Board of
Directors. If the Company elects to raise additional capital by
issuing additional shares, there can be no assurance that it will
be able to do so on terms that are favorable to the Company or at
all.
The total number of 74.9 million shares is composed of the
following amounts:
* approximately 34.4 million shares are reserved under the
Company's 2007 Equity Incentive Plan in favor of employees
and directors of the Company, of which 0.9 million shares
are reserved for stock options already granted and 33.5
million shares are reserved for future grants of stock
options;
* approximately 1.5 million shares are reserved under the
Company's 2007 Employee Stock Purchase Plan for the
Company's employees;
* approximately 39 million shares are reserved for issuance
upon exercise of previously issued warrants and convertible
notes-there can be no assurance that the holders of the
warrants will exercise their warrants.
About Cell Therapeutics
Headquartered in Seattle, Cell Therapeutics, Inc. (NASDAQ and MTA:
CTIC) -- http://www.CellTherapeutics.com/-- is a
biopharmaceutical company that develops an integrated portfolio of
oncology products aimed at making cancer more treatable.
Subsequent to the closure of its Bresso, Italy operations in
September 2009, CTI's operations are conducted solely in the
United States.
The Company reported $69.59 million in total assets and
$87.73 million in total liabilities, resulting in $18.76 million
in stockholders' deficit at Dec. 31, 2009.
Going Concern Doubt
San Francisco-based Stonefield Josephson, Inc., has included an
explanatory paragraph in their report on Cell Therapeutics, Inc.'s
December 31, 2009, 2008 and 2007 consolidated financial statements
regarding their substantial doubt as to the Company's ability to
continue as a going concern. The independent auditors reported
that the Company has sustained loss from operations over the audit
periods, incurred an accumulated deficit, and has substantial
monetary liabilities in excess of monetary assets as of
December 31, 2009.
Bankruptcy Warning
In its Form 10-Q report for the period ended September 30, 2009,
filed with the Securities and Exchange Commission, the Company
warned it does not expect it will have sufficient cash to fund
planned operations through the second quarter of 2010, which
raises substantial doubt about its ability to continue as a going
concern. The Company said if it fails to obtain capital when
required, the Company said it may be required to delay, scale
back, or eliminate some or all of its research and development
programs and may be forced to cease operations, liquidate its
assets and possibly seek bankruptcy protection.
CELL THERAPEUTICS: To Retire All Remaining 2010 Convertible Debt
----------------------------------------------------------------
Cell Therapeutics Inc. has deposited $39.3 million in cash as
trust funds with U.S. Bank National Association, as the trustee of
the outstanding 4% convertible senior subordinated notes, which is
an amount sufficient to pay and discharge the entire amount due on
the Notes, including accrued and unpaid interest.
"We are pleased that with recent successful financings we were in
a position to retire all of our Notes with a maturity in 2010,"
said James A. Bianco, M.D., CEO of CTI. "This should eliminate
shareholder concerns over our ability to repay the Notes with a
maturity in 2010, and we will continue our focus on moving our
products forward through the clinic and the regulatory approval
process as expeditiously as possible."
About Cell Therapeutics
Headquartered in Seattle, Cell Therapeutics, Inc. (NASDAQ and MTA:
CTIC) -- http://www.CellTherapeutics.com/-- is a
biopharmaceutical company that develops an integrated portfolio of
oncology products aimed at making cancer more treatable.
Subsequent to the closure of its Bresso, Italy operations in
September 2009, CTI's operations are conducted solely in the
United States.
The Company reported $69.59 million in total assets and
$87.73 million in total liabilities, resulting in $18.76 million
in stockholders' deficit at Dec. 31, 2009.
Going Concern Doubt
San Francisco-based Stonefield Josephson, Inc., has included an
explanatory paragraph in their report on Cell Therapeutics, Inc.'s
December 31, 2009, 2008 and 2007 consolidated financial statements
regarding their substantial doubt as to the Company's ability to
continue as a going concern. The independent auditors reported
that the Company has sustained loss from operations over the audit
periods, incurred an accumulated deficit, and has substantial
monetary liabilities in excess of monetary assets as of
December 31, 2009.
Bankruptcy Warning
In its Form 10-Q report for the period ended September 30, 2009,
filed with the Securities and Exchange Commission, the Company
warned it does not expect it will have sufficient cash to fund
planned operations through the second quarter of 2010, which
raises substantial doubt about its ability to continue as a going
concern. The Company said if it fails to obtain capital when
required, the Company said it may be required to delay, scale
back, or eliminate some or all of its research and development
programs and may be forced to cease operations, liquidate its
assets and possibly seek bankruptcy protection.
CHARLES HICKS: Case Summary & 15 Largest Unsecured Creditors
------------------------------------------------------------
Joint Debtors: Charles Keith Hicks
Debbie Martin Hicks
P.O. Box 15747
Wilmington, NC 28408
Bankruptcy Case No.: 10-05339
Chapter 11 Petition Date: July 2, 2010
Court: U.S. Bankruptcy Court
Eastern District of North Carolina (Wilson)
Judge: Randy D. Doub
Debtor's Counsel: Dean R. Davis, Esq.
Allen, MacDonald & Davis, PLLC
1508 Military Cutoff Road, Suite 102
Wilmington, NC 28403
Tel: (910) 256-6558
Fax: (910) 256-6538
E-mail: allenmac1508@yahoo.com
Estimated Assets: $500,001 to $1,000,000
Estimated Debts: $1,000,001 to $10,000,000
A copy of the Debtors' list of 15 largest unsecured
creditors filed together with the petition is available for
free at http://bankrupt.com/misc/nceb10-05339.pdf
The petition was signed by the Joint Debtors.
CHERY FATO: Case Summary & 3 Largest Unsecured Creditors
--------------------------------------------------------
Debtor: Chery Fato
102 Founders Pointe
Bloomingdale, IL 60108
Bankruptcy Case No.: 10-30019
Chapter 11 Petition Date: July 2, 2010
Court: U.S. Bankruptcy Court
Northern District of Illinois (Chicago)
Judge: Eugene R. Wedoff
Debtor's Counsel: Frank J. Del Medico, Esq.
Frank J Del Medico Ltd.
2501 Des Plaines Avenue
North Riverside, IL 60546
Tel: (708) 447-4300
E-mail: fjdelmedicolaw@yahoo.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
A copy of the Debtor's list of 3 largest unsecured creditors
filed together with the petition is available for free
at http://bankrupt.com/misc/ilnb10-30019.pdf
The petition was signed by the Debtor.
CHINA CABLECOM: Significant Losses Cue Going Concern Doubt
----------------------------------------------------------
China Cablecom Holdings, ltd., filed on July 1, 2010, with the
U.S. Securities and Exchange Commission its annual report on Form
10-K for the year ended December 31, 2009.
UHY Vocation HK CPA Limited, in Hong Kong, expressed substantial
doubt about the Company's ability to continue as a going concern.
The independent auditors noted that the Company has incurred
significant losses during 2009 and 2008, has a working capital
deficit at December 31, 2009, and has relied on debt and equity
financings to fund their operations.
The Company reported a net loss of US$56.2 million on US$45.6
million of revenue for 2009, compared with a net loss of US$13.2
million on US$23.4 million of revenue for 2008.
The Company's balance sheet at March 31, 2010, showed
US$190.8 million in assets, US$152.1 million of liabilities, and
US$38.7 million of stockholders' equity.
A full-text copy of the Form 10-K is available for free at:
http://researcharchives.com/t/s?65ec
Shanghai, PRC-based China Cablecom Holdings, Ltd. (NASDAQ: CABL)
(NASDAQ: CABLW) (NASDAQ: CABLU) - http://www.chinacablecom.net/-
is a joint-venture provider of cable television services in the
People's Republic of China, operating in partnership with a local
state-owned enterprise authorized by the PRC government to control
the distribution of cable TV services through the deployment of
analog and digital cable services. China Cablecom now operates 28
cable networks with over 1.67 million paying subscribers.
CONTINENTAL AIRLINES: Reports 89% Consolidated Load Factor in June
------------------------------------------------------------------
Continental Airlines reported a June consolidated load factor of
86.9%, 2.1 points above the June 2009 consolidated load factor,
and a mainline load factor of 87.3%, 2.1 points above the June
2009 mainline load factor. Both June load factors were records
for the month. The carrier reported a record June domestic
mainline load factor of 88.2%, 0.1 points above the June 2009
domestic mainline load factor, and an all time record
international mainline load factor of 86.5%, 4.0 points above June
2009.
During June, Continental recorded a U.S. Department of
Transportation on-time arrival rate of 80.8% and a mainline
segment completion factor of 99.9%.
In June 2010, Continental flew 8.4 billion consolidated revenue
passenger miles and 9.7 billion consolidated available seat miles,
resulting in a consolidated traffic increase of 4.7% and a
capacity increase of 2.2% as compared to June 2009. In June 2010,
Continental flew 7.5 billion mainline RPMs and 8.6 billion
mainline ASMs, resulting in a mainline traffic increase of 4.6%
and a mainline capacity increase of 2.0% compared to the same
period last year. Domestic mainline traffic was 3.7 billion RPMs
in June 2010, up 0.3% from June 2009, and domestic mainline
capacity was 4.2 billion ASMs, up 0.1% from June 2009.
For June 2010, consolidated passenger revenue per available seat
mile is estimated to have increased between 21.0% and 22.0%
compared to June 2009, while mainline RASM is estimated to have
increased between 20.5 and 21.5 percent. For May 2010,
consolidated passenger RASM increased 23.4% compared to May 2009,
while mainline passenger RASM increased 22.6% compared to the same
period 2009.
Continental ended the second quarter 2010 with an unrestricted
cash, cash equivalents and short-term investments balance of
approximately $3.51 billion.
Continental's regional operations had a record June load factor of
83.0 percent, 1.5 points above the June 2009 regional load factor.
Regional RPMs were 894.8 million and regional ASMs were
1,078.2 million in June 2010, resulting in a traffic increase of
5.7% and a capacity increase of 3.8% versus June 2009.
About Continental Airlines
Houston, Texas-based Continental Airlines (NYSE: CAL) --
http://www.continental.com/-- is the world's fifth largest
airline. Continental, together with Continental Express and
Continental Connection, has more than 2,700 daily departures
throughout the Americas, Europe and Asia, serving 132 domestic and
137 international destinations. Continental is a member of Star
Alliance, which overall offers more than 21,050 daily flights to
1,167 airports in 181 countries through its 27 member airlines.
With more than 40,000 employees, Continental has hubs serving New
York, Houston, Cleveland and Guam, and together with its regional
partners, carries approximately 63 million passengers per year.
At December 31, 2009, Continental had total assets of
$12.781 billion against total current liabilities of
$4.389 billion; long-term debt and capital leases of
$5.291 billion; deferred income taxes of $203 million; accrued
pension liability of $1.248 billion; accrued retiree medical
benefits of $216 million; and other liabilities of $844 million.
At December 31, 2009, the Company had accumulated deficit of
$442 million, accumulated other comprehensive loss of
$1.185 billion and stockholders' equity of $590 million. The
December 31 balance sheet showed strained liquidity: Continental
had total current assets of $4.373 billion against total current
liabilities of $4.389 billion.
* * *
As reported by the Troubled Company Reporter on May 5, 2010, Fitch
Ratings has affirmed the Issuer Default Rating for Continental
Airlines, Inc., at 'B-' and the senior unsecured rating at
'CC/RR6' following the announcement of the planned merger between
CAL and UAL Corp. The Rating Outlook for CAL is Stable.
The TCR on May 5, 2010, also said Standard & Poor's Ratings
Services placed its 'B' corporate credit rating on Continental
Airlines, and S&P's ratings on its secured and unsecured debt, on
CreditWatch with negative implications. S&P also placed its
ratings on Continental's enhanced equipment trust certificates on
CreditWatch with developing implications. Although S&P's recovery
ratings on selected Continental unsecured debt are unaffected by
the rating action, S&P will review them as well.
CROWN MANAGEMENT: Voluntary Chapter 11 Case Summary
---------------------------------------------------
Debtor: Crown Management Services, Inc.
dba Green Shutter Plaza
22650 Main Street
Hayward, CA 94541
Bankruptcy Case No.: 10-47551
Chapter 11 Petition Date: July 1, 2010
Court: United States Bankruptcy Court
Northern District of California (Oakland)
Judge: Edward D. Jellen
Debtor's Counsel: William F. McLaughlin, Esq.
Law Offices of William F. McLaughlin
1305 Franklin St. #301
Oakland, CA 94612
Tel: (510) 839-4456
E-mail: mcl551@aol.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
The Debtor did not file a list of its largest unsecured creditors
together with its petition.
The petition was signed by Sanjay Bakshi, chief executive officer.
D&H ASHGROVE: Case Summary & 5 Largest Unsecured Creditors
----------------------------------------------------------
Debtor: D&H Ashgrove #1, LLC
400 Bellerive Boulevard, Suite 200
Nicholasville, KY 40356
Bankruptcy Case No.: 10-52134
Chapter 11 Petition Date: July 2, 2010
Court: United States Bankruptcy Court
Eastern District of Kentucky (Lexington)
Debtor's Counsel: Constance G. Grayson, Esq.
125 South Main Street
Nicholasville, KY 40356
Tel: (859) 885-5536
E-mail: cgraysonlaw@yahoo.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
A copy of the Debtor's list of 5 largest unsecured creditors
filed together with the petition is available for free
at http://bankrupt.com/misc/kyeb10-52134.pdf
The petition was signed by James A. Hughes, managing member.
DELTA AIR: PBGC Transfers $1.995 Bil. Claims to BlueMountain
------------------------------------------------------------
The Pension Benefit Guaranty Corporation disclosed, in separate
notices filed with the Bankruptcy Court, that it has absolutely
and unconditionally transferred five general non-priority
unsecured proofs of claim to BlueMountain Long/Short Credit Master
Fund L.P.
The Transferred Claims aggregate $1,995,855,349.
About Delta Air Lines
Atlanta, Georgia-based Delta Air Lines (NYSE: DAL) --
http://www.delta.com/or http://www.nwa.com/-- provides scheduled
air transportation for passengers and cargo throughout the United
States, and around the world. The Company's route network is
centered on the hub system it operate at airports in Atlanta,
Cincinnati, Detroit, Memphis, Minneapolis/St. Paul, New York-JFK,
Salt Lake City, Paris-Charles de Gaulle, Amsterdam and Tokyo-
Narita. The hub operations include flights, which gather and
distribute traffic from markets in the geographic region
surrounding the hub to domestic and international cities and to
other hubs. The network is supported by a fleet of aircraft, which
is varied in terms of size and capabilities. On December 31,
2009, the Company's wholly owned subsidiary Northwest Airlines,
Inc., merged with and into Delta. The wholly owned subsidiary of
the Company is Northwest Airlines Corporation.
Northwest and 12 affiliates filed for Chapter 11 protection on
September 14, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-17930).
On May 21, 2007, the Court confirmed the Northwest Debtors'
amended plan. That amended plan took effect May 31, 2007.
Delta and 18 affiliates filed for Chapter 11 protection on
September 14, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-17923).
Marshall S. Huebner, Esq., at Davis Polk & Wardwell, represented
the Delta Debtors in their restructuring efforts. On April 25,
2007, the Court confirmed the Delta Debtors' plan. That plan
became effective on April 30, 2007.
(Bankruptcy Creditors Service Inc. publishes Delta Air Lines
Bankruptcy News, http://bankrupt.com/newsstand/or 215/945-7000).
* * *
Delta Air Lines and Northwest Airlines carry a 'B/Negative/--'
corporate ratings from Standard & Poor's. They also continue to
carry 'B2' corporate family ratings from Moody's and "B-" LT
Issuer Default rating from Fitch.
Delta Air carries a 'B-' issuer default rating from Fitch Ratings.
DELTA AIR: Reports May 2010 Traffic Results
-------------------------------------------
Delta Air Lines (NYSE: DAL) reported traffic results for May 2010.
System traffic in May 2010 increased 2.7 percent compared to May
2009 on a 0.6 percent increase in capacity. Load factor increased
1.6 points to 83.9 percent.
Domestic traffic increased 0.3 percent year over year on a
0.6 percent increase in capacity. Domestic load factor decreased
0.3 points to 83.8 percent. International traffic increased 6.7
percent year over year on a 0.7 percent increase in capacity, and
load factor increased 4.7 points to 84.1 percent.
Delta Air Lines
Monthly Traffic Results
May 2010 May 2010 Change
-------- -------- ------
RPMs (000):
Domestic 9,920,295 9,893,190 0.3%
Mainline 7,823,234 7,719,972 1.3%
Regional 2,097,061 2,173,218 (3.5%)
International 6,356,256 5,959,120 6.7%
Latin America 849,580 727,076 16.8%
Mainline 828,069 717,127 15.5%
Regional 21,511 9,949 116.2%
Atlantic 3,771,114 3,874,573 (2.7%)
Pacific 1,735,562 1,357,471 27.9%
System 16,276,551 15,852,310 2.7%
ASMs (000):
Domestic 11,834,943 11,768,172 0.6%
Mainline 9,211,832 9,000,124 2.4%
Regional 2,623,111 2,768,048 (5.2%)
International 7,555,144 7,501,580 0.7%
Latin America 1,120,595 1,035,079 8.3%
Mainline 1,090,585 1,017,750 7.2%
Regional 30,010 17,329 73.2%
Atlantic 4,387,306 4,634,285 (5.3%)
Pacific 2,047,243 1,832,216 11.7%
System 19,390,087 19,269,752 0.6%
Load Factor
Domestic 83.8% 84.1% (0.3) pts
Mainline 84.9% 85.8% (0.9) pts
Regional 79.9% 78.5% 1.4 pts
International 84.1% 79.4% 4.7 pts
Latin America 75.8% 70.2% 5.6 pts
Mainline 75.9% 70.5% 5.4 pts
Regional 71.7% 57.4% 14.3 pts
Atlantic 86.0% 83.6% 2.4 pts
Pacific 84.8% 74.1% 10.7 pts
System 83.9% 82.3% 1.6 pts
Passengers
Boarded 13,793,488 13,726,187 0.5%
Mainline
Completion Factor 98.9% 99.7% (0.8) pts
Cargo Ton
Miles (000):
Passenger Cargo 193,104 134,437 43.6%
Freighter Cargo 0 38,226 (100.0%)
System 193,104 172,663 11.8%
Delta Air Lines
Year-To-Date Traffic Results
May 2010 May 2010 Change
-------- -------- ------
RPMs (000):
Domestic 46,185,984 46,554,715 (0.8%)
Mainline 36,254,748 36,609,100 (1.0%)
Regional 9,931,236 9,945,615 (0.1%)
International 27,542,230 27,674,088 (0.5%)
Latin America 5,291,399 5,062,245 4.5%
Mainline 5,170,442 4,979,435 3.8%
Regional 120,957 82,810 46.1%
Atlantic 13,994,682 15,166,981 (7.7%)
Pacific 8,256,149 7,444,862 10.9%
System 73,728,214 74,228,803 (0.7%)
ASMs (000):
Domestic 56,489,819 57,596,045 (1.9%)
Mainline 43,660,289 44,207,424 (1.2%)
Regional 12,829,530 13,388,621 (4.2%)
International 34,380,233 36,363,392 (5.5%)
Latin America 6,868,046 6,733,240 2.0%
Mainline 6,703,622 6,604,358 1.5%
Regional 164,424 128,882 27.6%
Atlantic 17,643,836 20,361,869 (13.3%)
Pacific 9,868,351 9,268,283 6.5%
System 90,870,052 93,959,437 (3.3%)
Load Factor
Domestic 81.8% 80.8% 1.0 pts
Mainline 83.0% 82.8% 0.2 pts
Regional 77.4% 74.3% 3.1 pts
International 80.1% 76.1% 4.0 pts
Latin America 77.0% 75.2% 1.8 pts
Mainline 77.1% 75.4% 1.7 pts
Regional 73.6% 64.3% 9.3 pts
Atlantic 79.3% 74.5% 4.8 pts
Pacific 83.7% 80.3% 3.4 pts
System 81.1% 79.0% 2.1 pts
Passengers
Boarded 63,679,712 64,470,970 (1.2%)
Cargo Ton
Miles (000):
Passenger Cargo 874,231 615,070 42.1%
Freighter Cargo 0 206,840 (100.0%)
System 874,231 821,910 6.4%
About Delta Air Lines
Atlanta, Georgia-based Delta Air Lines (NYSE: DAL) --
http://www.delta.com/or http://www.nwa.com/-- provides scheduled
air transportation for passengers and cargo throughout the United
States, and around the world. The Company's route network is
centered on the hub system it operate at airports in Atlanta,
Cincinnati, Detroit, Memphis, Minneapolis/St. Paul, New York-JFK,
Salt Lake City, Paris-Charles de Gaulle, Amsterdam and Tokyo-
Narita. The hub operations include flights, which gather and
distribute traffic from markets in the geographic region
surrounding the hub to domestic and international cities and to
other hubs. The network is supported by a fleet of aircraft, which
is varied in terms of size and capabilities. On December 31,
2009, the Company's wholly owned subsidiary Northwest Airlines,
Inc. merged with and into Delta. The wholly owned subsidiary of
the Company is Northwest Airlines Corporation.
Northwest and 12 affiliates filed for Chapter 11 protection on
September 14, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-17930).
On May 21, 2007, the Court confirmed the Northwest Debtors'
amended plan. That amended plan took effect May 31, 2007.
Delta and 18 affiliates filed for Chapter 11 protection on
September 14, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-17923).
Marshall S. Huebner, Esq., at Davis Polk & Wardwell, represented
the Delta Debtors in their restructuring efforts. On April 25,
2007, the Court confirmed the Delta Debtors' plan. That plan
became effective on April 30, 2007.
(Bankruptcy Creditors Service Inc. publishes Delta Air Lines
Bankruptcy News, http://bankrupt.com/newsstand/or 215/945-7000).
* * *
Delta Air Lines and Northwest Airlines carry a 'B/Negative/--'
corporate ratings from Standard & Poor's. They also continue to
carry 'B2' corporate family ratings from Moody's and "B-" LT
Issuer Default rating from Fitch.
Delta Air carries a 'B-' issuer default rating from Fitch Ratings.
DEVALIE MORRISON: Case Summary & 11 Largest Unsecured Creditors
---------------------------------------------------------------
Debtor: Devalie Morrison
550 Cresta Circle
West Palm Beach, FL 33418
Bankruptcy Case No.: 10-28987
Chapter 11 Petition Date: July 2, 2010
Court: United States Bankruptcy Court
Southern District of Florida (West Palm Beach)
Judge: Paul G. Hyman Jr.
Debtor's Counsel: Henry N. Portner, Esq.
1001 W Indiantown Rd # 105
Jupiter, FL 33458
Tel: (561) 400-0027
E-mail: attatlaw@hotmail.com
Scheduled Assets: $1,296,486
Scheduled Debts: $1,837,247
A list of the Company's 11 largest unsecured creditors
filed together with the petition is available for free
at http://bankrupt.com/misc/flsb10-28987.pdf
The petition was signed by Devalie Morrison.
Debtor-affiliate that filed separate Chapter 11 petition:
Petition
Debtor Case No. Date
------ -------- ----
Janice Morrison 10-_____ ____
DISABILITY ACCESS: Lynda Keeton Raises Going Concern Doubt
----------------------------------------------------------
Disability Access Corporation filed on July 1, 2010, its annual
report on Form 10-K for the year ended December 31, 2009.
Lynda R. Keeton CPA, LLC, in Henderson, Nev., expressed
substantial doubt about the Company's ability to continue as a
going concern. The independent auditors noted that the Company
has working capital deficiencies and continued net losses.
The Company reported a net loss of $58,238 on $1,438,580 of
revenue for 2009, compared with a net loss of $38,887 on
$1,417,724 of revenue for 2008.
The Company's balance sheet at December 31, 2009, showed
$1,680,449 in assets, $1,015,342 of liabilities, and $665,107 of
stockholders' equity.
A full-text copy of the annual report is available for free at:
http://researcharchives.com/t/s?65e4
Disability Access Corporation - http://www.adaconsultants.com/-
presently has one subsidiary company, Disability Access
Consultants, Inc. Disability Access Consultants offers a full
range of accessibility compliance services for assistance in
compliance with the requirements of mandated and recommended
services for individuals with disabilities in accordance with
federal, state and local laws and regulations.
DISH NETWORK: CFO Olson Gets Option to Buy 25,000 Class A Shares
----------------------------------------------------------------
DISH Network Corp. EVP and CFO Robert E. Olson on June 30, 2010,
acquired employee stock options, giving him the right to buy
25,000 shares of the Company's Class A common stock.
These officers separately disclosed that they acquired employee
stock options, giving each the right to buy 600,000 Class A
shares. Each of them also acquired restricted stock units that
convert to 200,000 Class A shares:
-- R. Stanton Dodge, EVP, general counsel and secretary;
-- Thomas A. Cullen, EVP, Prog., Sales & Marketing; and
-- Bernard L. Han, EVP and Chief Operating Officer
The shares underlying the stock option vest at the rate of 20% per
year, commencing on June 30, 2011.
Directors Tom A. Ortolf, Steven R. Goodbarn and Gary S. Howard
acquired Non-Employee Director Stock Option that gives each
director the right to acquire 5,000 Class A shares. The shares
underlying the option were 100% vested upon the date of grant.
Meanwhile, EVP James DeFranco disclosed that on June 21 he sold
100,000 Class A shares at $21.41 apiece, paring his stake to
2,429,438 Class A shares. He directly owns those shares. Mr.
DeFranco also owns roughly 4,500,000 Class A shares indirectly --
the shares are held by him as a general partner of a limited
partnership; in an irrevocable trust for the benefit of his
children and grandchildren; or as custodian for his children.
About DISH Network
DISH Network Corporation is the third largest pay television
provider in the United States with 14.1 million subscribers as of
12/31/2009. Annual revenues approximate $11.6 billion.
* * *
According to the Troubled Company Reporter on March 9, 2010,
Moody's Investors Service said that Dish Network Corporation's Ba3
Corporate Family rating and stable outlook are not affected by the
announcement that a U.S. appeals court upheld a lower court's
ruling that despite changes made by Dish to its DVR software, the
company was still infringing on TiVo Inc.'s patents. Dish and
TiVo have been in litigation since 2004 over TiVo's patent
infringement claim. As a result of the ruling, the company owes
approximately $300 million in damages through July 2009 and
potentially additional charges should the company be required to
pay for patent infringements since July 2009. Dish announced that
it will be seeking a further review of the court's latest decision
by the full Federal Circuit.
DONALD MARQUEZ: Case Summary & 20 Largest Unsecured Creditors
-------------------------------------------------------------
Joint Debtors: Donald R. Marquez
Sybil D. Marquez
146 Pin High Circle
Henderson, NV 89074
Tel: (702) 433-9022
Bankruptcy Case No.: 10-22401
Chapter 11 Petition Date: July 1, 2010
Court: U.S. Bankruptcy Court
District of Nevada (Las Vegas)
Judge: Mike K. Nakagawa
Debtor's Counsel: Thomas E. Crowe, Esq.
7381 W. Charleston Boulevard #110
Las Vegas, NV 89117
Tel: (702) 794-0373
Fax: (702) 794-0734
E-mail: tcrowelaw@yahoo.com
Estimated Assets: $500,001 to $1,000,000
Estimated Debts: $1,000,001 to $10,000,000
According to the schedules, the Debtors say that assets total
$634,144 while debts total $1,363,100.
A copy of the Debtors' list of 20 largest unsecured
creditors filed together with the petition is available for
free at http://bankrupt.com/misc/nvb10-22401.pdf
The petition was signed by the Joint Debtors.
DYNASTAR PROPERTIES: Case Summary & 11 Largest Unsecured Creditors
------------------------------------------------------------------
Debtor: Dynastar Properties, LLC
20436 Route 19, Suite 620-286
Cranberry Township, PA 16066
Bankruptcy Case No.: 10-24746
Chapter 11 Petition Date: July 1, 2010
Court: U.S. Bankruptcy Court
Western District of Pennsylvania (Pittsburgh)
Debtor's Counsel: Phillip S. Simon, Esq.
603 Washington Road, Suite 401
Pittsburgh, PA 15228
Tel: (412) 440-4470
Fax: (412) 531-0874
E-mail: simonlink1@verizon.net
Estimated Assets: $100,001 to $500,000
Estimated Debts: $1,000,001 to $10,000,000
A copy of the Debtor's list of 11 largest unsecured
creditors filed together with the petition is available for
free at http://bankrupt.com/misc/pawb10-24746.pdf
The petition was signed by Sean Walters, member/manager.
Debtor-affiliate filing separate Chapter 11 petition:
Entity Case No. Petition Date
------ -------- -------------
Sean Walters 10-22124 03/27/10
ECKARD SALES: Case Summary & Largest Unsecured Creditor
-------------------------------------------------------
Debtor: Eckard Sales & Management, LLC
790 Davis Cole Road
Taylorsville, NC 28681
Bankruptcy Case No.: 10-50964
Chapter 11 Petition Date: July 2, 2010
Court: U.S. Bankruptcy Court
Western District of North Carolina (Wilkesboro)
Judge: J. Craig Whitley
Debtor's Counsel: James H. Henderson, Esq.
James H. Henderson, P.C.
1201 Harding Place
Charlotte, NC 28204-2248
Tel: (704) 333-3444
Fax: (704) 333-5003
E-mail: henderson@title11.com
Estimated Assets: $0 to $50,000
Estimated Debts: $0 to $50,000
The petition was signed by Archie D. Eckard, manager.
The list of unsecured creditors filed together with its petition
contains only one entry:
Entity Nature of Claim Claim Amount
------ --------------- ------------
Duke Energy -- $1,067
P.O. Box 70516
Charlotte, NC 28272-0516
Debtor-affiliate filing separate Chapter 11 petition:
Entity Case No. Petition Date
------ -------- -------------
Archie Dale Eckard and Faith Friddle Duke 10-50811 06/02/10
ELOUSH TALASAZAN: Case Summary & 20 Largest Unsecured Creditors
---------------------------------------------------------------
Joint Debtors: Eloush Talasazan
Ronit Talasazan
9315 Alcott St.
Los Angeles, CA 90035
Bankruptcy Case No.: 10-37251
Chapter 11 Petition Date: July 2, 2010
Court: United States Bankruptcy Court
Central District Of California (Los Angeles)
Judge: Victoria S. Kaufman
Debtor's Counsel: Michael Jay Berger, Esq.
9454 Wilshire Blvd 6th Flr
Beverly Hills, CA 90212-2929
Tel: (310) 271-6223
Fax: (310) 271-9805
E-mail: michael.berger@bankruptcypower.com
Scheduled Assets: $1,095,800
Scheduled Debts: $1,796,947
A list of the Company's 20 largest unsecured creditors
filed together with the petition is available for free
at http://bankrupt.com/misc/cacb10-37251.pdf
The petition was signed by Eloush Talasazan and Ronit Talasazan.
EMERALD COAST: Case Summary & 20 Largest Unsecured Creditors
------------------------------------------------------------
Debtor: Emerald Coast Holdings, LLC
dba Emerald Coast Wharf LLC
dba Emerald Coast Cordova LLC
dba Emerald Coast Desting Commissary, LLC
dba Emerald Coast HarborWalk LLC
dba Emerald Coast Coffee & Grille
dba Emerald Coast Bluewater LLC
dba Emerald Coast World Cafe
dba Emerald Coast CCR LLC
dba Emerald Coast Terminus LLC
dba Emeral Coast GB LLC
dba Emerald Coast Hurlburt Base LLC
dba Emerald Cost Desting Hwy 98 LLC
149 Baywind Drive
Niceville, FL 32578
Bankruptcy Case No.: 10-31382
Chapter 11 Petition Date: July 2, 2010
Court: United States Bankruptcy Court
Northern District of Florida (Pensacola)
Debtor's Counsel: C. Edwin Rude, Jr., Esq.
211 E. Call Street
Tallahassee, FL 32301-7607
Tel: (850) 222-2311
Fax: (850) 222-2120
E-mail: edrudelaw@earthlink.net
Estimated Assets: $100,001 to $500,000
Estimated Debts: $1,000,001 to $10,000,000
A list of the Company's 20 largest unsecured creditors
filed together with the petition is available for free
at http://bankrupt.com/misc/flnb10-31382.pdf
The petition was signed by Rocky Heinsz, president.
EPICENTRUM LLC: Case Summary & Largest Unsecured Creditor
---------------------------------------------------------
Debtor: Epicentrum LLC
26478 Ynez Road
Temecula, CA 92591
Bankruptcy Case No.: 10-30672
Chapter 11 Petition Date: July 2,2010
Court: United States Bankruptcy Court
Central District Of California (Riverside)
Judge: Meredith A. Jury
Debtor's Counsel: Vincent Renda, Esq.
Renda Law Offices PC
600 W Broadway Ste 400
San Diego, CA 92101
Tel: (619) 702-4305
Fax: (619) 515-1197
E-mail: vr@rendalawoffices.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
In its list of 20 largest unsecured creditors, the Company placed
only one entry:
Entity Nature of Claim Claim Amount
------ --------------- ------------
Raytheon Development Services $5,000
8690 Aero Drive
San Diego, CA 92123
The petition was signed by Kevin Tucker, manager.
EPICEPT CORPORATION: Inks Shares Sale Deal with Investors
---------------------------------------------------------
EpiCept Corporation entered into a Securities Purchase Agreement
with certain investors relating to the issuance and sale in a
public offering of approximately 6.1 million shares of the
Company's common stock, par value $.0001 per share, at a price of
$1.10 per share and warrants to purchase approximately
10.7 million shares of Common Stock. The closing occurred on
June 30, 2010. Net proceeds to the Company from the sale of the
Securities will be approximately $6.2 million. The Company
intends to use the net proceeds it receives to meet the Company's
working capital needs and for general corporate purposes. The
proceeds of this offering together with existing cash are expected
to be sufficient to fund operations into the fourth quarter of
2010.
The Warrants, which consist of the Series A Warrants and the
Series B Warrants, have an initial exercise price of $1.57 per
share, and may be exercised at any time and from time to time on
or after 181 days following the closing date of the offering. The
Series A Warrants to purchase 4,602,273 shares of common stock
have a term of five years, commencing 6 months from the closing
date of the transaction, and the Series B Warrants to purchase
6,136,363 shares of common stock have a term of one year and ten
days, commencing 6 months from the closing date of the
transaction.
The exercise price and number of shares issuable upon exercise
of the warrants are subject to adjustment in the event of stock
splits or dividends, business combinations, sale of assets or
other similar transactions but not as a result of future
transactions at lower prices. EpiCept shall have the right to
call the Series B Warrants if the company's common stock trades
above $2.00 per share for at least twenty consecutive trading
days.
Rodman & Renshaw, LLC acted as the exclusive placement agent for
the offering.
About EpiCept
Tarrytown, N.Y.-based EpiCept Corporation is a specialty
pharmaceutical company focused on the clinical development and
commercialization of pharmaceutical products for the treatment of
cancer and pain. The Company's lead product is Ceplene(R), which
when used concomitantly with low-dose interleukin-2 is intended as
remission maintenance therapy in the treatment of acute myeloid
leukemia, or AML, for adult patients who are in their first
complete remission.
Following EpiCept's 2009 results, Deloitte & Touche LLP in
Parsippany, New Jersey, expressed substantial doubt against
Epicept's ability as a going concern. The firm noted
that the Company has recurring losses from operations and
stockholders' deficit.
ERIC EATON: Case Summary & 16 Largest Unsecured Creditors
---------------------------------------------------------
Debtor: Eric D. Eaton
496 39th Avenue
St. Pete Beach, FL 33706
Bankruptcy Case No.: 10-16078
Chapter 11 Petition Date: July 1, 2010
Court: United States Bankruptcy Court
Middle District of Florida (Tampa)
Judge: Michael G. Williamson
Debtor's Counsel: Sheila D. Norman, Esq.
Norman and Bullington, P.A.
1905 West Kennedy Blvd
Tampa, FL 33606
Tel: (813) 251-6666
Fax: (813) 254-0800
E-mail: sheila@normanandbullington.com
Scheduled Assets: $1,580,992
Scheduled Debts: $2,429,596
[Redacted Aug. 26, 2011]
ERICKSON RETIREMENT: Trustee Wins Extension for Claims Objections
-----------------------------------------------------------------
Dan B. Lain, the appointed Liquidating Trustee under the Fourth
Amended Joint Plan of Reorganization of Erickson Retirement
Communities LLC and its debtor affiliates, sought and obtained an
extension of the deadline by which he can file claim objections on
behalf of the Reorganized Debtors through January 21, 2012.
The Post-Confirmation Order dated April 21, 2010, issued by Judge
Jernigan required that objections to claims against the
Reorganized Debtors must be filed and served no later than
June 21, 2010.
The Liquidating Creditor Trust Agreement executed by the Official
Committee of Unsecured Creditors, Mr. Lain, Redwood-ERC Senior
Living Holdings LLC and the Reorganized Debtors provides that the
Liquidating Trustee has the responsibility and authority to
object to the allowance of claims.
Before filing claim objections, the Liquidating Trustee intends
to evaluate and categorize all claims consistent with the three
subclasses of unsecured claims described under the Plan and the
Liquidating Creditor Trust Agreement, Tricia R. DeLeon, Esq., at
Bracewell & Giuliani LLP, in Dallas, Texas --
tricia.deleon@bgllp.com -- relates.
The Liquidating Trustee anticipates that determining which claims
are proper claims will be a complex and lengthy process.
Ms. DeLeon notes that the Liquidating Trustee may also need to
evaluate some of the Reorganized Debtors' documents to aid in his
analysis of claims objections. The Liquidating Trustee tells the
Court that he only learned on June 5, 2010, that the Reorganized
Debtors have about 500 computer servers and about 4,500 personal
computers, which could contain documents that need to be
reviewed. The Liquidating Trustee says he still does not have
access to those documents as of June 17, 2010.
The Liquidating Trustee adds that he may also need to review
8,600 boxes of hard-copy documents in the Reorganized Debtors'
storage files, before he can accurately and fully determine what
claims objections are proper.
About the Debtors
Lincolnshire Campus filed for Chapter 11 bankruptcy protection on
June 15, 2010 (Bankr. N.D. Tex. Case No. 10-34176). Vincent P.
Slusher, Esq., at DLA Piper LLP US, assists the Company in its
restructuring effort. The Company estimated its assets and debts
at $100,000,001 to $500,000,000.
Not-for-Profit Entities Sedgebrook, Inc. and Monarch Landing Inc.
filed for Chapter 11 on June 15, 2010.
The Lincolnshire Debtors and the NFP Debtors are affiliate of
Erickson Retirement Communities LLC.
Baltimore, Maryland-based Erickson Retirement Communities LLC,
along with affiliates, filed for Chapter 11 on Oct. 19, 2009
(Bankr. N.D. Tex. Case No. 09-37010). DLA Piper LLP (US) serves
as counsel to the Debtors. BMC Group Inc. serves as claims and
notice agent. Houlihan, Lokey, Howard & Zoukin, Inc., is also
serving as investment and financial consultant. Alvarez & Marsal
is serving as restructuring adviser. Judge Stacey G.C. Jernigan
confirmed Erickson's Plan of Reorganization on April 16, 2010.
The confirmed Chapter 11 Plan is premised on the $365 million sale
of substantially all of the Erickson Retirement assets to Redwood
Capital Investments LLC and its affiliates. The Plan became
effective on April 30, 2010.
Erickson own 20 continuing care retirement communities in 11
states. Among Erickson's 20 communities, eight are completed, 11
are open although in construction, and one is in development.
They have 23,000 residents in total.
Bankruptcy Creditors' Service, Inc., publishes Erickson Retirement
Bankruptcy News. The newsletter tracks the Chapter 11 proceedings
of Erickson Retirement Communities LLC and Lincolnshire Campus.
(http://bankrupt.com/newsstand/or 215/945-7000)
EXTENDED STAY: Court Allows Fees for November to February
---------------------------------------------------------
U.S. Bankruptcy Judge James Peck awarded 10 bankruptcy
professionals in Extended Stay Inc.'s cases their interim fees and
allowed a reimbursement of expenses the professionals incurred for
various period between August 2009 to February 2010.
Of the 10 professionals, five are retained by the Debtors; three
by the Official Committee of Unsecured Creditors; and two by
Ralph Mabey, the examiner appointed in the Debtors' cases.
The allowed fees and expenses for the Debtors' professionals
total $4,137,147; the Creditors Committee's professionals,
$1,699,898; and the examiner's professionals, $3,123,774.
Judge Peck also approved the application of Mr. Mabey, allowing
the interim payment of his fees, aggregating $101,902, and
reimbursement of his expenses, aggregating $11,478, for the
period covering November 1, 2009 to February 28, 2010.
The Court also approved the reimbursement of expenses, totaling
$3,822, incurred by members of the Creditors Committee.
A table identifying each professional and its corresponding
allowed fees and expenses is available without charge at:
http://bankrupt.com/misc/ESI_Allowedfees&expenses2ndIP.pdf
About Extended Stay
Extended Stay is the largest owner and operator of mid-price
extended stay hotels in the United States, holding one of the most
geographically diverse portfolios in the lodging sector with
properties located across 44 states (including 11 hotels located
in New York) and two provinces in Canada. As a result of
acquisitions and mergers, Extended Stay's portfolio has expanded
to encompass over 680 properties, consisting of hotels directly
owned or leased by Extended Stay or one of its affiliates.
Extended Stay currently operates five hotel brands: (i) Crossland
Economy Studios, (ii) Extended Stay America, (iii) Extended Stay
Deluxe, (iv) Homestead Studio Suites, and (v) StudioPLUS Deluxe
Studios.
Extended Stay Inc. and its affiliates filed for Chapter 11 on
June 15, 2009 (Bankr. S.D.N.Y. Case No. 09-13764). Judge James M.
Peck handles the case. Marcia L. Goldstein, Esq., at Weil Gotshal
& Manges LLP, in New York, represents the Debtors. Lazard Freres
& Co. LLC is the Debtors' financial advisors. Kurtzman Carson
Consultants LLC is the claims agent. Extended Stay had assets of
$7.1 billion and debts of $7.6 billion as of the end of 2008.
Bankruptcy Creditors' Service, Inc., publishes Extended Stay
Bankruptcy News. The newsletter provides gavel-to-gavel coverage
of the Chapter 11 proceedings undertaken by Extended Stay Inc. and
its various affiliates. (http://bankrupt.com/newsstand/or
215/945-7000).
EXTENDED STAY: Opposes Committee Plea for Estate Representative
---------------------------------------------------------------
Extended Stay Inc. and its affiliated debtors urge the Court to
deny the request for an estate representative appointment, saying
it is based on "rampant speculation" and "does not establish that
third party causes of action are colorable claims."
The Official Committee of Unsecured Creditors earlier asked Judge
Peck to appoint it as estate representative and confer standing on
it to pursue claims against those that were involved or that
benefited from the 2007 acquisition of the Debtors from Blackstone
Group LP by an investment consortium led by Lightstone Group LLC
Chairman David
Lichtenstein.
Jacqueline Marcus, Esq., at Weil Gotshal & Manges LLP, in New
York, says the Estate Representative Appointment Motion is
unnecessary in light of certain provisions contained in the
proposed restructuring plan of ESI's debtor affiliates.
Ms. Marcus points out that the Debtors have proposed under their
Chapter 11 Plan the establishment of a litigation trust to
resolve or pursue avoidance actions and other causes of action
"to assuage any concerns that any potentially valuable third
party causes of action may be lost."
A group of creditors led by Blackstone Real Estate Special
Situations Fund L.P., and CWCapital Asset Management LLC have
also criticized the Creditors Committee' motion.
The Blackstone Group says that granting the Creditors Committee
standing to unwind the 2007 sale is not in the best interests of
the Debtors' estates given the "non-colorable and speculative
nature" of the panel's proposed claims.
CWCapital, for its part, describes the Creditors Committee's
Motion as "premature and unnecessarily duplicative," pointing out
that the litigation trust is already there to pursue the types of
claims the Creditors Committee wants to pursue.
Creditors Committee Reacts
In response to the objections, the Creditors Committee asks the
Court to adjourn a portion of its motion seeking standing to
pursue all causes of action, which are classified "litigation
trust assets." The Committee, however, seeks for standing to
challenge the validity of the prepetition liens and security
interests of U.S. Bank N.A. and the $4.1 mortgage loan trust it
administers with respect to certain unencumbered assets, and to
prosecute the causes of action held by ESI's estate which are not
part of the restructuring plan.
Mark Power, Esq., at Hahn & Hessen LLP, in New York, insists that
the Creditors Committee's request for standing to assert
challenges is different from the claims that will be prosecuted
by a litigation trust. "The challenges specifically relate to
asserting certain estate assets as unencumbered and available for
the proper funding of a litigation trust and for distribution on
a pro rata basis to all unsecured creditors," he says.
About Extended Stay
Extended Stay is the largest owner and operator of mid-price
extended stay hotels in the United States, holding one of the most
geographically diverse portfolios in the lodging sector with
properties located across 44 states (including 11 hotels located
in New York) and two provinces in Canada. As a result of
acquisitions and mergers, Extended Stay's portfolio has expanded
to encompass over 680 properties, consisting of hotels directly
owned or leased by Extended Stay or one of its affiliates.
Extended Stay currently operates five hotel brands: (i) Crossland
Economy Studios, (ii) Extended Stay America, (iii) Extended Stay
Deluxe, (iv) Homestead Studio Suites, and (v) StudioPLUS Deluxe
Studios.
Extended Stay Inc. and its affiliates filed for Chapter 11 on
June 15, 2009 (Bankr. S.D.N.Y. Case No. 09-13764). Judge James M.
Peck handles the case. Marcia L. Goldstein, Esq., at Weil Gotshal
& Manges LLP, in New York, represents the Debtors. Lazard Freres
& Co. LLC is the Debtors' financial advisors. Kurtzman Carson
Consultants LLC is the claims agent. Extended Stay had assets of
$7.1 billion and debts of $7.6 billion as of the end of 2008.
Bankruptcy Creditors' Service, Inc., publishes Extended Stay
Bankruptcy News. The newsletter provides gavel-to-gavel coverage
of the Chapter 11 proceedings undertaken by Extended Stay Inc. and
its various affiliates. (http://bankrupt.com/newsstand/or
215/945-7000).
EXTENDED STAY: Starwood Agrees on Reduced Reimbursement
-------------------------------------------------------
Extended Stay Inc. filed a supplemental motion, seeking the
Court's approval to reimburse the Starwood Capital group
$7,629,504, for its expenses.
ESI initially proposed to reimburse the Starwood group $9,150,394
for fees and expenses of its professionals that were employed in
connection with the negotiation of their prior agreement for the
sponsorship and funding of the restructuring plan of ESI's debtor
affiliates.
The Starwood group lost to another bidder led by Centerbridge
Partners LP for the plan sponsorship at a May 27, 2010 auction,
but the parties' agreement requires ESI to reimburse the Starwood
group for its expenses in case ESI accepts another bid.
Jacqueline Marcus, Esq., at Weil Gotshal & Manges LLP, in New
York, says that ESI and the Starwood group had agreed to reduce
the expense reimbursement amount by more than $1.52 million. The
Starwood investors, she says, agreed to an across-the-board
reduction in the expenses of each of its professionals.
CWCapital Questions Proposed Payment
In court papers, CWCapital Asset Management LLC questions the
proposed payment to the Starwood group, asserting that only the
winning bidder is entitled to reimbursement of expenses under the
Bankruptcy Court-approved process governing the solicitation of
bids for the sponsorship of the restructuring plan.
"The [Court-approved] procedures barred bid proposals that sought
reimbursement of expenses," says CWCapital's attorney, Gregory
Cross, Esq. -- gacross@venable.com -- at Venable LLP, in
Baltimore, Maryland. "The request to reimburse the expenses of
the Starwood investor, an unsuccessful bidder, is in direct
contradiction of those procedures and should not be
countenanced."
CWCapital is the special servicer for U.S. Bank N.A., which
administers the trust under which the Debtors' $4.1 billion
prepetition mortgage loan is deposited.
Meanwhile, the Official Committee of Unsecured Creditors says it
will not oppose the payment if the expenses will be paid solely
from the collateral of U.S. Bank and the loan trust, and will not
result in an increase in any alleged deficiency claim of U.S.
Bank.
The Creditors Committee, however, maintains that it will oppose
the payment if the Court determines that U.S. Bank and the
trust's alleged claims will be satisfied through the proceeds
from the auction and the so-called "adequate protection payments"
made during ESI's bankruptcy case.
About Extended Stay
Extended Stay is the largest owner and operator of mid-price
extended stay hotels in the United States, holding one of the most
geographically diverse portfolios in the lodging sector with
properties located across 44 states (including 11 hotels located
in New York) and two provinces in Canada. As a result of
acquisitions and mergers, Extended Stay's portfolio has expanded
to encompass over 680 properties, consisting of hotels directly
owned or leased by Extended Stay or one of its affiliates.
Extended Stay currently operates five hotel brands: (i) Crossland
Economy Studios, (ii) Extended Stay America, (iii) Extended Stay
Deluxe, (iv) Homestead Studio Suites, and (v) StudioPLUS Deluxe
Studios.
Extended Stay Inc. and its affiliates filed for Chapter 11 on
June 15, 2009 (Bankr. S.D.N.Y. Case No. 09-13764). Judge James M.
Peck handles the case. Marcia L. Goldstein, Esq., at Weil Gotshal
& Manges LLP, in New York, represents the Debtors. Lazard Freres
& Co. LLC is the Debtors' financial advisors. Kurtzman Carson
Consultants LLC is the claims agent. Extended Stay had assets of
$7.1 billion and debts of $7.6 billion as of the end of 2008.
Bankruptcy Creditors' Service, Inc., publishes Extended Stay
Bankruptcy News. The newsletter provides gavel-to-gavel coverage
of the Chapter 11 proceedings undertaken by Extended Stay Inc. and
its various affiliates. (http://bankrupt.com/newsstand/or
215/945-7000).
FALLIS PROPERTIES: Case Summary & 8 Largest Unsecured Creditors
---------------------------------------------------------------
Debtor: Fallis Properties, LLC
4255 Hillview Drive
Pittsburg, CA 94565
Bankruptcy Case No.: 10-52640
Chapter 11 Petition Date: July 2, 2010
Court: U.S. Bankruptcy Court
District of Nevada (Reno)
Judge: Gregg W. Zive
Debtor's Counsel: Alan R. Smith, Esq.
505 Ridge Street
Reno, NV 89501
Tel: (775) 786-4579
E-mail: mail@asmithlaw.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
According to the schedules, the Debtor says that assets total
$4,674,375 while debts total $4,909,627.
A copy of the Debtor's list of 8 largest unsecured creditors
filed together with the petition is available for free
at http://bankrupt.com/misc/nvb10-52640.pdf
The petition was signed by Susan F. Fallis, managing member.
FANNIE MAE: Files Form 25 to Delist Various Securities
------------------------------------------------------
Fannie Mae filed with the Securities and Exchange Commission two
Form 25s to remove from listing these securities:
* Common Stock, without par value
* 8.25% Non-Cumulative Preferred Stock, Series T, stated
value $25 per share
* 8.75% Non-Cumulative Mandatory Convertible Preferred Stock,
Series 2008-1, stated value $50 per share
* Fixed-to-Floating Rate Non-Cumulative Preferred Stock,
Series S, stated value $25 per share
* 7.625% Non-Cumulative Preferred Stock, Series R, stated
value $25 per share
* 6.75% Non-Cumulative Preferred Stock, Series Q, stated
value $25 per share
* Variable Rate Non-Cumulative Preferred Stock, Series P,
stated value $25 per share
* 5.50% Non-Cumulative Preferred Stock, Series N, stated
value $50 per share
* 4.75% Non-Cumulative Preferred Stock, Series M, stated
value $50 per share
* 5.125% Non-Cumulative Preferred Stock, Series L, stated
value $50 per share
* 5.375% Non-Cumulative Preferred Stock, Series I, stated
value $50 per share
* 5.81% Non-Cumulative Preferred Stock, Series H, stated
value $50 per share
* Variable Rate Non-Cumulative Preferred Stock, Series G,
stated value $50 per share
* Variable Rate Non-Cumulative Preferred Stock, Series F,
stated value $50 per share
Last month, Fannie Mae notified the New York Stock Exchange and
the Chicago Stock Exchange of its intent to delist its common and
preferred stock. The notice was made in response to notification
by the NYSE on June 15, 2010, that the company no longer met NYSE
continued listing standards relating to the minimum price of
Fannie Mae's common stock and to the issuance of a directive dated
June 16, 2010 by the Federal Housing Finance Agency, Fannie Mae's
conservator, for Fannie Mae to delist its common and preferred
stock from the NYSE and any other U.S. stock exchange where its
common and preferred stock are listed.
According to a press release by FHFA, the Acting Director of FHFA
directed both Fannie Mae and Freddie Mac to take such actions.
Fannie Mae expects that its common stock and all series of
preferred stock that were previously listed on the NYSE will be
traded in the over-the-counter market and quoted on the OTC
Bulletin Board, a centralized electronic quotation service for
over-the-counter securities, under a ticker symbol that has yet to
be assigned. Fannie Mae expects that its common stock and
preferred stock will continue to trade on the OTCBB so long as
market makers demonstrate an interest in trading in the common and
preferred stock.
Fannie Mae does not expect that the transfer of the trading of its
common and preferred stock to the OTCBB will affect, in any way,
Fannie Mae's ability to fulfill its mission to provide liquidity
and stability to the mortgage market, or its focus on home-
retention, foreclosure-prevention, and refinance efforts under the
Making Home Affordable Program. The transition to the OTCBB also
will not affect the company's obligation to file periodic and
certain other reports with the SEC under applicable federal
securities laws.
About Fannie Mae
Federal National Mortgage Association, aka Fannie Mae, is a
government-sponsored enterprise that was chartered by U.S.
Congress in 1938 to support liquidity, stability and affordability
in the secondary mortgage market, where existing mortgage-related
assets are purchased and sold. Fannie Mae provides market
liquidity by securitizing mortgage loans originated by lenders in
the primary mortgage market into Fannie Mae mortgage-backed
securities, and purchasing mortgage loans and mortgage-related
securities in the secondary market for its mortgage portfolio.
Fannie Mae acquires funds to purchase mortgage-related assets for
its mortgage portfolio by issuing a variety of debt securities in
the domestic and international capital markets. Fannie Mae also
makes other investments that increase the supply of affordable
housing. Its charter does not permit us to originate loans and
lend money directly to consumers in the primary mortgage market.
At March 31, 2010, Fannie Mae had total assets of $3.293 trillion
in total assets against $3.302 trillion in total liabilities.
Fannie Mae has been under conservatorship, with the Federal
Housing Finance Agency acting as conservator, since September 6,
2008. As conservator, FHFA succeeded to all rights, titles,
powers and privileges of the company, and of any shareholder,
officer or director of the company with respect to the company and
its assets. The conservator has since delegated specified
authorities to Fannie Mae's Board of Directors and has delegated
to management the authority to conduct day-to-day operations.
The U.S. Department of the Treasury owns Fannie Mae's senior
preferred stock and a warrant to purchase 79.9% of its common
stock, and Treasury has made a commitment under a senior preferred
stock purchase agreement to provide Fannie with funds under
specified conditions to maintain a positive net worth.
FANNIE MAE: Releases May 2010 Monthly Summary
---------------------------------------------
Fannie Mae's May 2010 Monthly Summary is now available
at http://www.fanniemae.com/ir/monthly
The monthly summary report contains information about Fannie Mae's
monthly and year-to-date activities for our gross mortgage
portfolio, mortgage-backed securities and other guarantees,
interest rate risk measures, and serious delinquency rates.
About Fannie Mae
Federal National Mortgage Association, aka Fannie Mae, is a
government-sponsored enterprise that was chartered by U.S.
Congress in 1938 to support liquidity, stability and affordability
in the secondary mortgage market, where existing mortgage-related
assets are purchased and sold. Fannie Mae provides market
liquidity by securitizing mortgage loans originated by lenders in
the primary mortgage market into Fannie Mae mortgage-backed
securities, and purchasing mortgage loans and mortgage-related
securities in the secondary market for its mortgage portfolio.
Fannie Mae acquires funds to purchase mortgage-related assets for
its mortgage portfolio by issuing a variety of debt securities in
the domestic and international capital markets. Fannie Mae also
makes other investments that increase the supply of affordable
housing. Its charter does not permit us to originate loans and
lend money directly to consumers in the primary mortgage market.
At March 31, 2010, Fannie Mae had total assets of $3.293 trillion
in total assets against $3.302 trillion in total liabilities.
Fannie Mae has been under conservatorship, with the Federal
Housing Finance Agency acting as conservator, since September 6,
2008. As conservator, FHFA succeeded to all rights, titles,
powers and privileges of the company, and of any shareholder,
officer or director of the company with respect to the company and
its assets. The conservator has since delegated specified
authorities to Fannie Mae's Board of Directors and has delegated
to management the authority to conduct day-to-day operations.
The U.S. Department of the Treasury owns Fannie Mae's senior
preferred stock and a warrant to purchase 79.9% of its common
stock, and Treasury has made a commitment under a senior preferred
stock purchase agreement to provide Fannie with funds under
specified conditions to maintain a positive net worth.
FIRSTFED FINANCIAL: Names Brian Argrett as Chief Executive Officer
------------------------------------------------------------------
The Board of Directors of FirstFed Financial Corp. appointed Brian
E. Argrett as Chief Executive Officer effective as of June 28,
2010. During his service as Chief Executive Officer, Mr. Argrett
will be paid a salary of $10,000 per month.
Mr. Argrett has served as a member of the Board of the Company
since 2006 and as Chairman of the Board since December 2009.
Mr. Argrett is the President and Chief Executive Officer of
Fulcrum Capital Group, LLC, a private equity firm specializing in
buyouts, expansion financing, recapitalizations, and growth
through internal and/or external initiatives. Prior to joining
Fulcrum Capital Group in 1992, Mr. Argrett spent three years as a
transactional attorney with the law firm of Pircher, Nichols &
Meeks in Los Angeles.
About FirstFed Financial
Woodland Hills, Calif.-based FirstFed Financial Corp. is the bank
holding company for First Federal Bank of Califorinia and its
subsidiaries. The Bank was closed by federal regulators on
December 18, 2009. The Company filed for Chapter 11 protection on
Jan. 6, 2010 (Bankr. C.D. Calif. Case No. 10-10150). Jon L.
Dalberg, Esq., at Landau Gottfried & Berger LLP, represents the
Debtor in its restructuring efforts. In its petition, the Debtor
listed assets of of between $1 million and $10 million, and debts
of between $100 million and $500 million.
FLYING J: Set to Obtain Confirmation of Chapter 11 Plan
-------------------------------------------------------
Bill Rochelle at Bloomberg News reports that Flying J Inc. is set
for approval of the Chapter 11 plan after most of its retail
business was sold last week to Knoxville, Tennessee-based Pilot
Travel Centers LLC. The confirmation hearing was scheduled July
6.
According to the report, the $1.2 billion transaction includes
$515 million cash plus equity in Pilot. The Pilot transaction was
completed July 1 after the Federal Trade Commission ruled on June
30 that there were no antitrust impediments in the combination.
Bringing the two companies together creates an operation with 550
travel centers. The combined companies will operate under the
name Pilot Flying J.
Flying J's reorganization plan was filed in February. It is
intended to pay creditors in full, with the excess going to
existing shareholders.
About Flying J Inc.
Based in Ogden, Utah, Flying J Inc. -- http://www.flyingj.com/--
is among the 20 largest private companies in America, with 2007
sales exceeding $16 billion. The fully integrated oil company
employs approximately 14,700 people in the U.S. and Canada through
its interstate operations, transportation, refining and supply,
exploration and production, as well as its financial services and
communications, divisions.
Flying J and six of its affiliates filed for bankruptcy on
December 22, 2008 (Bankr. D. Del. Lead Case No. 08-13384). Flying
J sought Chapter 11 protections after a precipitous drop in oil
prices and disruption in the credit markets brought to bear
significant short-term pressure on the company's liquidity
position.
Attorneys at Young Conaway Stargatt & Taylor LLP, and Kirkland &
Ellis LLP, represent the Debtors in their Chapter 11 effort.
Blackstone Advisory Services L.P. is the Debtors' investment
banker and financial advisor. Epiq Bankruptcy Solutions LLC is
the Debtors' notice, claims and balloting agent. In its formal
schedules submitted to the Bankruptcy Court, Flying J listed
assets of $1,433,724,226 and debts of $640,958,656.
An official committee of unsecured creditors has been appointed in
the case. Pachulski Stang Ziehl & Jones LLP has been tapped as
counsel for the creditors' panel.
FORTUNE INDUSTRIES: Gets Non-Compliance Notice From NYSE Amex
-------------------------------------------------------------
Fortune Industries Inc. has been notified by the NYSE Amex in a
letter dated July 2, 2010 that it is not in compliance with
Section 803(B)(2)(c) of the NYSE Amex Company Guide in that the
Company's audit committee is not comprised of at least two
independent directors.
This non-compliance is a result of the May 7, 2010 resignation of
one of its independent directors, who also served on the Company's
audit committee.
Pursuant to Section 803(B)(6) of the Company Guide, the Company
has until the earlier of its next annual shareholders' meeting or
one year from the occurrence of the event that caused the failure
to comply with the requirement to regain compliance. The Company
is currently interviewing potential candidates for the position of
independent director and audit committee member, and expects to
have the position filled by the required timeframe.
About Fortune Industries
Fortune Industries, Inc., is a holding company of providers of
full service human resources outsourcing services through co-
employment relationships with their clients.
The Company reported $32,225,000 in total assets and $12,615,000
in total liabilities resulting to a $19,610,000 stockholders'
equity for Dec. 31, 2009.
Going Concern Doubt
Somerset CPAs, P.C., in Indianapolis, Indiana, expressed
substantial doubt about Fortune Industries, Inc.'s ability to
continue as a going concern after auditing the Company's financial
statements for fiscal periods ended June 30, 2009, Aug. 31, 2008,
and 2007. The auditor noted that the Company has had recurring
losses from operations and has a net capital deficiency.
FRANK JODZIO: Case Summary & 6 Largest Unsecured Creditors
----------------------------------------------------------
Debtor: Frank M. Jodzio
1744 Sixth Avenue
San Diego, CA 92101
Bankruptcy Case No.: 10-11788
Chapter 11 Petition Date: July 2, 2010
Court: U.S. Bankruptcy Court
Southern District of California (San Diego)
Judge: Louise DeCarl Adler
Debtor's Counsel: Philip J. Giacinti, Jr., Esq.
Procopio Cory Hargreaves & Savitch
525 "B" Street, Suite 2200
San Diego, CA 92101
Tel: (619) 238-1900
Fax: (619) 235-0398
E-mail: pjg@procopio.com
Estimated Assets: $10,000,001 to $50,000,000
Estimated Debts: $1,000,001 to $10,000,000
The petition was signed by the Debtor.
Debtor's List of 6 Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
------ --------------- ------------
Chase 924-926 26th St. $408,211
P.O. Box 78148 San Diego, CA
Phoenix, AZ 85062-8148 92102
Chase 930-932 27th St. $393,526
P.O. Box 78148 San Diego, CA
Phoenix, AZ 85062-8148 92102
Home Depot Credit Credit Card - $17,391
P.O. Box 182676 building supplies
Columbus, OH 43218-2676
Chase Cardmember Services Credit Card $11,618
Bank of America Credit Card $7,613
USAA Credit Card Credit Card $3,405
FRASER PAPERS: CCAA Stay Period Extended to July 9
--------------------------------------------------
Fraser Papers Inc., in its second Default Status Report in
accordance with National Policy 12-203 Cease Trade Orders for
Continuous Disclosure Defaults, said that it remains under
creditor protection pursuant to the provisions of the Companies'
Creditors Arrangement Act, with its stay of proceedings having
been extended by the court to July 9, 2010.
The Company is working diligently to finalize the accounting for
certain restructuring transactions and expects to file required
documents by July 20, 2010.
About Fraser Papers
Fraser Papers -- http://www.fraserpapers.com/-- is an integrated
specialty paper company that produces a broad range of specialty
packaging and printing papers. The Company has operations in New
Brunswick, Maine, New Hampshire and Quebec.
On June 18, 2009, citing continued operating losses, weak markets
for pulp and lumber, impending debt repayments and significant
pension funding obligations, the Company and its subsidiaries
filed for protection under the Companies Creditors Arrangement Act
(Ont. Super. Ct. J. Ct. File No. CV-09-8241-00CL) in Toronto and
Chapter 15 (Bankr. D. Del. Case No. 09-12123) of the U.S.
Bankruptcy Code. Fraser is represented by Michael Barrack, Esq.,
Robert I. Thornton, Esq., and D.J. Miller, Esq., at
ThorntonGroutFinnigan LLP, in Toronto, and Derek C. Abbott, Esq.,
at Morris, Nichols, Arsht & Tunnell LLP, in Wilmington, Del. With
adequate financing to support continuing operations, Fraser says
it is developing a restructuring plan to present to its creditors
-- hopefully by Oct. 16, 2009 -- with the objective of emerging
with a sustainable and profitable specialty papers business.
FREDDIE MAC: Files Form 25 to Delist Various Securities
-------------------------------------------------------
Freddie Mac filed with the Securities and Exchange Commission a
Form 25 to remove from listing these securities:
* Common Stock, without par value (FRE)
* Variable Rate Non-Cumulative Preferred Stock, par value
$1.00 per share (FRE.prB)
* 5% Non-Cumulative Preferred Stock, Series 2008-1, par value
$1.00 per share (FRE.prF)
* Variable Rate Non-Cumulative Preferred Stock, par value
$1.00 per share (FRE.prG)
* 5.1% Non-Cumulative Preferred Stock, par value $1.00 per
share (FRE.prH)
* 5.79% Non-Cumulative Preferred Stock, par value $1.00 per
share (FRE.prK)
* Variable Rate Non-Cumulative Preferred Stock, par value
$1.00 per share (FRE.prL)
* Variable Rate Non-Cumulative Preferred Stock, par value
$1.00 per share (FRE.prM)
* Variable Rate Non-Cumulative Preferred Stock, par value
$1.00 per share (FRE.prN)
* 5.81% Non-Cumulative Preferred Stock, par value $1.00 per
share (FRE.prO)
* 6% Non-Cumulative Preferred Stock, par value $1.00 per
share (FRE.prP)
* Variable Rate Non-Cumulative Preferred Stock, par value
$1.00 per share (FRE.prQ)
* 5.7% Non-Cumulative Preferred Stock, par value $1.00 per
share (FRE.prR)
* Variable Rate Non-Cumulative Perpetual Preferred Stock, par
value $1.00 per share (FRE.prS)
* 6.42% Non-Cumulative Perpetual Preferred Stock, par value
$1.00 per share (FRE.prT)
* 5.9% Non-Cumulative Perpetual Preferred Stock, par value
$1.00 per share (FRE.prU)
* 5.57% Non-Cumulative Perpetual Preferred Stock, par value
$1.00 per share (FRE.prV)
* 5.66% Non-Cumulative Perpetual Preferred Stock, par value
$1.00 per share (FRE.prW)
* 6.02% Non-Cumulative Perpetual Preferred Stock, par value
$1.00 per share (FRE.prX)
* 6.55% Non-Cumulative Preferred Stock, par value $1.00 per
share (FRE.prY)
* Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred
Stock, par value $1.00 per share (FRE.prZ)
About Freddie Mac
Based in McLean, Virginia, Freddie Mac (NYSE: FRE)
-- http://www.FreddieMac.com/-- was established by Congress in
1970 to provide liquidity, stability and affordability to the
nation's residential mortgage markets. The Company's
participation in the secondary mortgage market includes providing
its credit guarantee for residential mortgages originated by
mortgage lenders and investing in mortgage loans and mortgage-
related securities. The Company earns management and guarantee
fees for providing its guarantee and performing management
activities (such as ongoing trustee services, administration of
pass-through amounts, paying agent services, tax reporting and
other required services) with respect to issued PCs and Structured
Securities.
Freddie Mac is under conservatorship and is dependent upon the
continued support of Treasury and FHFA to continue operating its
business. The Company received $6.1 billion and $30.8 billion in
June 2009 and March 2009, respectively, pursuant to draw requests
that FHFA submitted to Treasury on the Company's behalf to address
the deficits in the Company's net worth as of March 31, 2009, and
December 31, 2008, respectively. As a result of funding of the
draw requests, the aggregate liquidation preference on the senior
preferred stock owned by Treasury increased from $14.8 billion as
of December 31, 2008, to $51.7 billion on December 31, 2009.
FREDDIE MAC: SVP Joseph Rossi Discloses Equity Stake
----------------------------------------------------
Joseph A. Rossi, SVP-Operations & Technology at Freddie Mac,
disclosed that as of June 28, 2010, he held 22,272 shares of
common stock. He directly owns those shares.
Mr. Rossie also said he acquired stock options that may be
converted to 3,830 common shares. The options expire April 10,
2015.
About Freddie Mac
Based in McLean, Virginia, Freddie Mac (NYSE: FRE)
-- http://www.FreddieMac.com/-- was established by Congress in
1970 to provide liquidity, stability and affordability to the
nation's residential mortgage markets. The Company's
participation in the secondary mortgage market includes providing
its credit guarantee for residential mortgages originated by
mortgage lenders and investing in mortgage loans and mortgage-
related securities. The Company earns management and guarantee
fees for providing its guarantee and performing management
activities (such as ongoing trustee services, administration of
pass-through amounts, paying agent services, tax reporting and
other required services) with respect to issued PCs and Structured
Securities.
Freddie Mac is under conservatorship and is dependent upon the
continued support of Treasury and FHFA to continue operating its
business. The Company received $6.1 billion and $30.8 billion in
June 2009 and March 2009, respectively, pursuant to draw requests
that FHFA submitted to Treasury on the Company's behalf to address
the deficits in the Company's net worth as of March 31, 2009, and
December 31, 2008, respectively. As a result of funding of the
draw requests, the aggregate liquidation preference on the senior
preferred stock owned by Treasury increased from $14.8 billion as
of December 31, 2008, to $51.7 billion on December 31, 2009.
GAIL BALSER: Case Summary & 20 Largest Unsecured Creditors
----------------------------------------------------------
Debtor: Gail A. Balser
38 Elizabeth Island Road
P.O. Box 1980
Mashpee, MA 02649
Bankruptcy Case No.: 10-17292
Chapter 11 Petition Date: July 1, 2010
Court: United States Bankruptcy Court
District of Massachusetts (Boston)
Judge: William C. Hillman
Debtor's Counsel: Gail A. Balser, Esq.
Law Office of Gail Balser
182 North Main Street
Attleboro, MA 02703
Tel: (508) 699-2500
Fax: (508) 699-2501
E-mail: gail@bklaw.me
Estimated Assets: $100,001 to $500,000
Estimated Debts: $1,000,001 to $10,000,000
A copy of the Debtor's list of 20 largest unsecured
creditors filed together with the petition is available for
free at http://bankrupt.com/misc/mab10-17292.pdf
The petition was signed by the Debtor.
GENE GIULIANO: Case Summary & 20 Largest Unsecured Creditors
------------------------------------------------------------
Joint Debtors: Gene Anthony Giuliano
Laura Irene Giuliano
3917 Blairmoor Sreet
North Las Vegas, NV 89032
Bankruptcy Case No.: 10-22460
Chapter 11 Petition Date: July 2, 2010
Court: U.S. Bankruptcy Court
District of Nevada (Las Vegas)
Judge: Mike K. Nakagawa
Debtor's Counsel: Charles T. Wright, Esq.
Piet & Wright
3130 S. Rainbow Boulevard, Suite 304
Las Vegas, NV 89146
Tel: (702) 566-1212
Fax: (702) 566-4833
E-mail: pwlawecf@gmail.com
Estimated Assets: $100,001 to $500,000
Estimated Debts: $1,000,001 to $10,000,000
A copy of the Debtors' list of 20 largest unsecured
creditors filed together with the petition is available for
free at http://bankrupt.com/misc/nvb10-22460.pdf
The petition was signed by the Joint Debtors.
GENERAL GROWTH: To Auction 503 Lots at Summerlin, Nevada
--------------------------------------------------------
Bill Rochelle at Bloomberg News reports that General Growth
Properties Inc. is seeking approval from the bankruptcy court of
procedures for selling some of the remaining 7,000 undeveloped
acres at Summerlin, the 22,500-acre master-planned community
outside Las Vegas. Absent higher offers, General Growth will sell
232 lots to Richmond American Homes of Nevada Inc. for
$18 million. Richmond is a subsidiary of Denver-based M.D.C.
Holdings Inc. A subsidiary of Pulte Homes Inc. is under contract
to buy 271 lots for $19.9 million. A hearing on the auction
procedures is scheduled for July 22.
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)
GENOIL INC: Files 20-F for 2009; Posts C$5.2 Million Net Loss
-------------------------------------------------------------
Genoil Inc. filed on July 1, 2010, its annual report on Form 20-F,
reporting a net loss of C$5.2 million on zero revenues for the
year ended Dec. 31, 2009, compared with a net loss of
C$7.8 million on C$36,109 revenues for the year ended December 31,
2008.
The Company's balance sheet at Dec. 31, 2009, showed C$4.1 million
in total assets and C$2.8 million in total liabilities for a
stockholders' equity of C$1.3 million.
As at December 31, 2009, the Company has incurred a loss of
C$5.2 million (2008 -- C$7.8 million; 2007 -- C$11.3 million) for
the year and has accumulated losses of C$68.0 million (2008 --
C$62.9 million, 2007 -- $55.1 million) since inception.
The Company says its ability to continue as a going concern is in
substantial doubt and is dependent on achieving profitable
operations, commercializing its upgrader technology, and obtaining
the necessary financing in order to develop this technology
further.
The Company adds that it is not expected to be profitable during
the ensuing twelve months and therefore must rely on securing
additional funds from either issuance of debt or equity financing
for cash consideration. During the year the Company secured net
debt and equity financing of C$2,083,987.
A full-text copy of the annual report on Form 20-F is available
for free at http://researcharchives.com/t/s?65e2
A full-text copy of the consolidated financial statements for the
year ended December 31, 2009, is available for free at:
http://researcharchives.com/t/s?65e1
Genoil Inc. was incorporated under the Canada Business
Corporations Act. The Company is a technology development company
based in Alberta, Canada. The Company is focused on providing
innovative solutions to the oil and gas industry through the use
of proprietary technologies. The Company's business activities
are primarily directed to the development and commercialization of
its upgrader technology, designed to convert heavy crude oil into
light synthetic oil, and oil and water separation technology to
treat and clean bilge water. The Company is listed on the TSX
Venture Exchange under the symbol GNO as well as the Nasdaq OTC
Bulletin Board using the symbol GNOLF.OB.
GLOBAL CROSSING: Launches Sr. Secured Note Exchange Offering
------------------------------------------------------------
Global Crossing Limited has commenced an exchange offer for any
and all of its outstanding $750,000,000 in aggregate principal
amount of 12% Senior Secured Notes due 2015.
The Original Notes were issued on September 22, 2009, in a private
placement pursuant to Rule 144A and Regulation S under the
Securities Act of 1933, as amended. Holders of the Original Notes
may exchange them for an equal principal amount of a new issue of
12% Senior Secured Notes due 2015, which have been registered
under the Securities Act pursuant to an effective registration
statement on Form S-4 filed with the Securities and Exchange
Commission. Terms of the New Notes are substantially identical to
those of the Original Notes, except that certain transfer
restrictions, registration rights, and additional interest
provisions relating to the Original Notes do not apply to the New
Notes and the New Notes will bear a different CUSIP number. The
New Notes will accrue interest from and including March 15, 2010,
which is the last date on which interest was paid on the Original
Notes.
The exchange offer is being conducted to satisfy Global Crossing's
obligations under the terms of a registration rights agreement
entered into in connection with the initial issuance of the
Original Notes, and does not represent a new financing
transaction. Global Crossing will not receive any proceeds from
the exchange offer.
The exchange offer will expire at 5:00 p.m. New York City time on
Friday, July 30, 2010, unless extended or terminated. Tenders of
the Original Notes must be properly made before the exchange offer
expires and may be withdrawn at any time before the exchange offer
expires.
About Global Crossing
Based in Hamilton, Bermuda, Global Crossing Limited (NASDAQ: GLBC)
is a global IP and Ethernet solutions provider with the world's
first integrated global IP-based network. The company offers a
full range of data, voice and collaboration services with an
industry leading customer experience and delivers service to
approximately 40% of the Fortune 500, as well as to 700 carriers,
mobile operators and ISPs. It delivers converged IP services to
more than 700 cities in more than 70 countries around the world.
The Company's balance sheet showed $2.3 billion in total assets
and $2.7 million in total liabilities, for a $400 million
stockholders' deficit as of March 31, 2010. At December 31, 2009,
the Company had US$360 million in stockholders' deficit.
* * *
As reported by the Troubled Company Reporter on March 31, 2010,
Standard & Poor's Ratings Services raised all its ratings on
Global Crossing, including the corporate credit rating to 'B' from
'B-'. The outlook is stable.
GLOBAL ENERGIES: Involuntary Chapter 11 Case Summary
----------------------------------------------------
Alleged Debtor: Global Energies, LLC
aka 714 Technologies, LLC
637 Jim Moran Boulevard
Deerfield Beach, FL 33442
Bankruptcy Case No.: 10-28935
Involuntary Chapter 11 Petition Date: July 1, 2010
Court: U.S. Bankruptcy Court
Eastern District of Virginia (Alexandria)
Judge: Raymond B. Ray
Debtor's Counsel: Pro Se
Petitioners' Counsel: Chad P. Pugatch, Esq.
101 NE 3 Avenue, Suite 1800
Ft. Lauderdale, FL 33301
Tel: (954) 462-8000
E-mail: cpugatch.ecf@rprslaw.com
Creditor who signed the Chapter 11 petition:
Petitioners Nature of Claim Claim Amount
----------- --------------- ------------
Chrispus Venture Capital, LLC Promissory Note $1,092,375
c/o Roberts Assets Management
360 Route 101 #3A
Bedford, NH 03110-5033
GLOBUS MARITIME: May Seek Delisting of Shares From AIM
------------------------------------------------------
Globus Maritime Ltd. said that its Board of Directors has noted
that the Company's shares have been consistently trading at a
substantial discount to its net asset value, which is a hindrance
to the Company's plans for growth. Accordingly, with a view to
maximizing Shareholder value, the Board has considered whether the
Company should maintain its listing on AIM or seek a listing on
another Stock Exchange.
Although no final decision has been made in this regard, following
discussions with the Company's advisers, the Board believes that
it may be in the interests of the Company and its shareholders as
a whole for it to seek a listing on a Stock Exchange in the United
States in the near future. Were the Company to achieve such a
listing, it would seek to delist its shares from AIM as soon as
reasonably practicable so as to avoid the unnecessary expense of
maintaining dual listings. The Board is therefore planning to
seek shareholder approval at the AGM in respect of certain matters
to facilitate such a listing in a timely manner should it choose
to proceed with it. Further details are set out in the Circular.
Posting of the Notice of AGM
The Company has today posted a circular to its shareholders
containing a notice of the Annual General Meeting of the Company
together with a form of proxy and a CD-Rom containing the 2009
Annual Report and Accounts and new articles of incorporation and
by-laws proposed to be adopted by the Company if the Board
determines to seek a listing on a Stock Exchange in the United
States. The AGM will be held on July 28, 2010 at 12:00 BST or
14:00 local Greek time at the offices of Globus Shipmanagement
Corp., the Company's wholly-owned subsidiary, 3rd Floor, 128
Vouliagmenis Avenue, Glyfada, Athens 16674 Greece.
The full notice of AGM contained in the circular, together with
the 2009 Annual Report and Accounts, is available to be downloaded
from the Company's website http://www.globusmaritime.gr.
The resolutions to be proposed at the AGM include:
-- Resolution 1: Approval of Annual Report and Accounts for the
Period ended 31 December 2009
-- Resolutions 2, 3 and 4: Reappointment of Directors
-- Resolutions 5 and 6: Reappointment and remuneration of
Auditors
-- Resolution 7: Removal of pre-emption rights
-- Resolution 8: Reduction in the notice period for general
meetings
-- Resolutions 9, 10 and 11: Preparation for a possible listing
on a Stock Exchange in the United States
Resolutions 9, 10 and 11 seek approval for certain matters which
the Company would be required to undertake, were it to seek a
listing on a US Stock Exchange. In this regard, the Company
announces that, with a view to maximising shareholder value, it is
exploring alternatives to its current Stock Exchange listing.
Resolutions 1 to 6 (inclusive) comprise the ordinary business of
the meeting and will be proposed as ordinary resolutions of the
Company, and resolutions 7 to 11 (inclusive) are to be dealt with
as special business and will be proposed as special resolutions of
the Company.
Appointment of Jeffrey Owen Parry as
Non-Executive Director
The Company appointed Jeffery Owen Parry as a non-executive
director with immediate effect.
Mr. Parry has 26 years' experience in the shipping sector. He is
currently President of Mystic Marine Advisors LLC, a Connecticut-
based advisory firm specializing in turnaround and emerging
shipping companies. Formerly, he was CEO of NASDAQ-listed Aries
Maritime Transport Limited (now NewLead Holdings Ltd.), where he
led the turnaround and sale of the company. Mr. Parry has also
served as the Managing Director of A.G. Pappadakis & Co. Ltd, an
Athens-based shipowner, and Managing Director of Poten Capital
Services LLC, a U.S. broker/dealer firm specializing in shipping,
member of FINRA/SIPC. Mr. Parry holds a BA from Brown University
and an MBA from Columbia University. He started his career as a
stevedore on the New York waterfront.
Mr. George Feidakis, Chairman of Globus, commented: "All of us
welcome Jeff Parry to the Company's Board of Directors. We are
confident that his expertise and counsel will be valuable assets
as we continue to grow our Company."
Jeff Parry fills the seat made vacant by the resignation of Mr.
Arjun Batra who had been a director of Globus since May 2007. Mr.
Feidakis commented: "Arjun Batra played an important role in the
development and success of Globus and we thank him for his years
of good service."
Mr. Parry does not currently hold any shares in the Company.
Save as disclosed herein there are no additional disclosures to be
made in accordance with Rule 17 and paragraph (g) of Schedule 2 of
the AIM rules for Jeffrey Parry.
For further information:
Globus Maritime Limited +30 210 960 8300
George Karageorgiou, CEO info@globusmaritime.gr
Jefferies International
Limited +44 (0) 20 7029 8000
Oliver Griffiths
Anne Dovigen
Capital Link - London +44 (0) 20 3206
1322/globus@capitallink.com
Annie Evangeli
Capital Link - New York +1 212 661
7566/globus@capitallink.com
Ramnique Grewal
About Globus Maritime Limited
Globus is a global provider of seaborne transportation services
for dry bulk cargoes, including among others iron ire, coal,
grain, cement and fertilizers, along worldwide shipping routes.
Globus owns and operates one Panamax, one Kamsarmax, and three
Supramax vessels, with a weighted average age of 3.4 years as at
June 30, 2010, and a total carrying capacity of 319,952 DWT.
Globus is listed on the AIM market of the London Stock Exchange
under ticker GLBS. Jefferies International Limited is acting as
nominated adviser and broker to the Company.
GREEKTOWN HOLDINGS: Former MGM Detroit COO to Head New Board
------------------------------------------------------------
The Board of Directors of Greektown Superholdings, Inc., disclosed
that Greektown Holdings, L.L.C., and its subsidiaries, which
operate Greektown Casino-Hotel in Detroit have emerged from
bankruptcy and that the Chapter 11 Plan of Reorganization that was
confirmed in January 2010 became effective. The Michigan Gaming
Control Board approved the transfer and related matters on June
28, 2010.
George Boyer, who was the president and COO of MGM Grand Detroit
from 2002 to 2008 and a key member of the development team for the
permanent casino, which opened in 2007, has been appointed
Chairman of the Board of Directors. John Bitove and Yvette E.
Landau have also been appointed to the Board of Directors. Michael
E. Duggan, Benjamin C. Duster IV, Joel I. Ferguson and Freman
Hendrix have been nominated to the Board of Directors the Company
and their appointments are currently under review by the Michigan
Gaming Control Board.
Dechert LLP represented the proponents of the confirmed Plan of
Reorganization. Dickinson Wright PLLC served as regulatory
counsel to the plan proponents.
Chairman Boyer issued the following statement:
"The successful resolution of the bankruptcy case is a significant
accomplishment for Greektown and the City of Detroit. The
Greektown neighborhood continues to show great promise and we
anticipate that we will continue to lead its resurgence. I expect
that our experienced management team will continue to make
Greektown a destination in downtown Detroit.
"I, along with my other Board members, want to thank everyone
involved in making this successful transition. We especially want
to single out CEO Cliff J. Vallier and every team member that has
worked so diligently during this difficult period. The Michigan
Gaming Control Board and the City of Detroit also deserve special
recognition for their efforts in this process.
"Greektown Casino-Hotel has been, and will continue to be, one of
the premier entertainment venues in Michigan."
"Greektown's exit from bankruptcy eliminates approximately
$500 million in debt. I expect that the new capital structure
will allow Greektown to continue to contribute to the local
economy and provide guests with a great experience," Mr. Vallier
said. "I look forward to working with our new board of directors,
which includes experienced industry executives and community
leaders."
About Greektown Casino
Based in Detroit, Michigan, Greektown Holdings, LLC, and its
affiliates -- http://www.greektowncasino.com/-- operate world-
class casino gaming facilities located in Detroit's historic
Greektown district featuring more than 75,000 square feet of
casino gaming space with more than 2,400 slot machines, over 70
tables games, a 12,500-square foot salon dedicated to high limit
gaming and the largest live poker room in the metropolitan Detroit
gaming market.
The Company and seven of its affiliates filed for Chapter 11
protection on May 29, 2008 (Bankr. E.D. Mich. Lead Case No.
08-53104). Daniel J. Weiner, Esq., Michael E. Baum, Esq., and
Ryan D. Heilman, Esq., at Schafer and Weiner PLLC, represent the
Debtors in their restructuring efforts. Judy B. Calton, Esq., at
Honigman Miller Schwartz and Cohn LLP, represents the Debtors as
their special counsel. The Debtors chose Conway MacKenzie &
Dunleavy as their financial advisor, and Kurtzman Carson
Consultants LLC as claims, noticing, and balloting agent. Clark
Hill PLC serves as counsel to the Official Committee of Unsecured
Creditors.
The Joint Plan of Reorganization for Greektown Holdings LLC and
five of its debtor affiliates proposed by certain noteholder
entities, the Official Committee of Unsecured Creditors of the
Debtors, and Deutsche Bank Trust Company Americas, as indenture
trustee, has been declared effective on June 30, 2010. Greektown
Casino Hotel clinched its way to the June 30 finish line when it
obtained a unanimous approval from the Michigan Gaming Control
Board on June 28, 2010, of the transfer of the Company's ownership
from the Sault Ste. Marie Tribe of Chippewa Indian to new
investors.
Bankruptcy Creditors' Service, Inc., publishes Greektown Casino
Bankruptcy News. The newsletter tracks the Chapter 11
proceedings undertaken by Greektown Casino and its various
affiliates. (http://bankrupt.com/newsstand/or 215/945-7000)
GROVE STREET: Voluntary Chapter 11 Case Summary
-----------------------------------------------
Debtor: Grove Street Realty Urban Renewal, LLC
14 Parke Place Boulevard, Suite A
Sewell, NJ 08080
Bankruptcy Case No.: 10-30427
Chapter 11 Petition Date: July 1, 2010
Court: United States Bankruptcy Court
District of New Jersey (Camden)
Judge: Judith H. Wizmur
Debtor's Counsel: Albert A. Ciardi, III, Esq.
Ciardi Ciardi & Astin, P.C.
One Commerce Square
2005 Market Street, Suite 1930
Philadelphia, PA 19103
Tel: (215) 557-3550
Fax: (215) 557-3551
E-mail: aciardi@ciardilaw.com
Estimated Assets: $10,000,001 to $50,000,000
Estimated Debts: $10,000,001 to $50,000,000
The petition was signed by Thomas E. Hedenberg, managing member.
The Debtor did not file its list of largest unsecured creditors
when it filed its petition.
GSI GROUP: Announces Revenue Estimates for Second Qtr. 2010
-----------------------------------------------------------
BankruptcyData.com reports that GSI Group announced its estimated
revenues for the second quarter of 2010, ending July 2, 2010.
BData says the Company estimates that these revenues will fall
within a range of $81 million to $89 million and that its adjusted
EBITDA for the second quarter of 2010 will fall within a range of
$13 million to $17 million; both amounts are before giving effect
to any adjustments associated with the restatement of the
Company's interim and annual financial statements for the fiscal
years 2006, 2007 and 2008. Based upon results to date, the
Company expects revenues and adjusted EBITDA for the second
quarter of 2010 to fall in the middle of the previously disclosed
ranges.
The Company also expects that, as a result of completing intra-
Company distributions, it will have sufficient operating capital
upon emergence from bankruptcy and does not expect to require a
working capital credit facility in order to emerge from Chapter 11
protection.
About GSI Group
GSI Group Inc. supplies precision technology to the global
medical, electronics, and industrial markets and semiconductor
systems. GSI Group Inc.'s common shares are quoted on Pink Sheets
OTC Markets Inc. (GSIGQ).
The Company and two of its affiliates filed for Chapter 11
protection on Nov. 20, 2009 (Bankr. D. Del. Lead Case No. 09-
14110). William R. Baldiga, Esq., at Brown Rudnick LLP,
represents the Debtors as lead counsel. Mark Minuti, Esq., at
Saul Ewing LLP, as its local counsel. The Debtors selected Garden
City Group Inc. as their claims and notice agent. In their
petition, the Debtors posted $555,000,000 in total assets and
$370,000,000 in total liabilities as of Nov. 6, 2009.
HARRY GRADY: Case Summary & 20 Largest Unsecured Creditors
----------------------------------------------------------
Debtor: Harry Paul Grady, IV
925 Frinks Court
North Myrtle Beach, SC 29582
Bankruptcy Case No.: 10-04781
Chapter 11 Petition Date: July 2, 2010
Court: United States Bankruptcy Court
District of South Carolina (Charleston)
Judge: David R. Duncan
Debtor's Counsel: Otis Allen Jeffcoat, III, Esq.
Jeffcoat Law Firm, LLC
P.O. Box 3678
Myrtle Beach, SC 29578
Tel: (843) 626-9000
E-mail: ajeffcoat@jeffcoatlaw.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
A copy of the Debtor's list of 20 largest unsecured
creditors filed together with the petition is available for
free at http://bankrupt.com/misc/scb10-04781.pdf
The petition was signed by the Debtor.
HARVEY ANDERSON: Case Summary & 20 Largest Unsecured Creditors
--------------------------------------------------------------
Joint Debtors: Harvey Leon Anderson, Jr
Ethel Evelia Anderson
2651 Oak Park Drive
Cookeville, TN 38506
Bankruptcy Case No.: 10-06980
Chapter 11 Petition Date: July 2, 2010
Court: U.S. Bankruptcy Court
Middle District of Tennessee (Cookeville)
Debtor's Counsel: Steven L. Lefkovitz, Esq.
Law Offices Lefkovitz & Lefkovitz
618 Church Street, Suite 410
Nashville, TN 37219
Tel: (615) 256-8300
Fax: (615) 255-4516
E-mail: slefkovitz@lefkovitz.com
Estimated Assets: $100,001 to $500,000
Estimated Debts: $1,000,001 to $10,000,000
According to the schedules, the Debtor says that assets total
$496,465 while debts total $1,160,287.
A copy of the Debtors' list of 20 largest unsecured
creditors filed together with the petition is available for
free at http://bankrupt.com/misc/tnmb10-06980.pdf
The petition was signed by the Joint Debtors.
HAWSHON RILEY: Voluntary Chapter 11 Case Summary
------------------------------------------------
Joint Debtors: Hawshon Daniel Riley
Dagny Brunsgaard Riley
8280 Grand View Drive
Los Angeles, CA 90046
Bankruptcy Case No.: 10-37069
Chapter 11 Petition Date: July 1, 2010
Court: United States Bankruptcy Court
Central District of California (Los Angeles)
Judge: Vincent P. Zurzolo
Debtor's Counsel: Thomas P. Giordano, Esq.
500 State College Blvd, Suite 530
Orange, CA 92868
Tel: (714) 912-7810
Fax: (714) 912-7860
E-mail: tohmahso@aol.com
Estimated Assets: $0 to $50,000
Estimated Debts: $1,000,001 to $10,000,000
The Debtor did not file a list of its largest unsecured creditors
together with its petition.
The petition was signed by Hawshon Daniel Riley and Dagny
Brunsgaard Riley.
HILL TOP: Case Summary & 9 Largest Unsecured Creditors
------------------------------------------------------
Debtor: Hill Top Farm, Ltd.
13639 Treasure Trail
San Antonio, TX 78232
Bankruptcy Case No.: 10-52526
Chapter 11 Petition Date: July 2, 2010
Court: U.S. Bankruptcy Court
Western District of Texas (San Antonio)
Judge: Ronald B. King
Debtor's Counsel: William B. Kingman, Esq.
4040 Broadway, Suite 450
San Antonio, TX 78209
Tel: (210) 829-1199
E-mail: bkingman@kingmanlaw.com
Estimated Assets: $10,000,001 to $50,000,000
Estimated Debts: $1,000,001 to $10,000,000
The petition was signed by Roberto Salinas, president of general
partner.
Debtor's List of 9 Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
------ --------------- ------------
Roberto R. Salinas -- $18,539
P.O. Box 3125
Laredo, TX 78044
Elena P. Garcia commission $11,300
2106 Clark Boulevard
Laredo, TX 78043
Flores Auditing, PLLC -- $10,000
3112 Spring Creek
Laredo, TX 78045
Salvador Ochoa -- $4,737
Cuatro Vientos
Laredo Morning Times -- $3,463
CEC Civil Engineering -- $3,000
Premium Assigment Corp -- $2,081
Klein & Barenblat -- $1,101
Edwin G. Ward -- $520
HOWARD SAVAGE: Case Summary & 20 Largest Unsecured Creditors
------------------------------------------------------------
Joint Debtors: Howard Wesley Savage, II
Felisa Ann Savage
2449 Fallen Tree Drive East
Jacksonville, FL 32246
Bankruptcy Case No.: 10-05775
Chapter 11 Petition Date: July 1, 2010
Court: United States Bankruptcy Court
Middle District of Florida (Jacksonville)
Judge: Paul M. Glenn
Debtor's Counsel: Brett A Mearkle, Esq.
Parker & Dufresne, P.A.
8777 San Jose Blvd Suite 301
Jacksonville, FL 32217
Tel: (904) 733-7766
Fax: (904) 733-2919
E-mail: bmearkle@jaxlawcenter.com
Scheduled Assets: $1,657,328
Scheduled Debts: $4,591,573
A list of the Company's 20 largest unsecured creditors
filed together with the petition is available for free
at http://bankrupt.com/misc/flmb10-05775.pdf
The petition was signed by Howard Wesley Savage, II and Felisa Ann
Savage.
IMAX CORP: Amends Employment Contract With EVP for Theatre Devt.
----------------------------------------------------------------
IMAX Corporation entered into an amendment to the employment
arrangement with Larry O'Reilly, the Company's Executive Vice
President, Theatre Development.
The amendment provided for an annual salary of $295,000, effective
July 1, 2010. Pursuant to the amendment, on July 1, 2010, Mr.
O'Reilly was granted 35,000 options to purchase common shares of
the Company in accordance with the Company's Stock Option Plan,
which options vest as to 10% on the first anniversary of the grant
date, 15% on the second anniversary of the grant date, 20% on the
third anniversary of the grant date, 25% on the fourth anniversary
of the grant date and 30% on the fifth anniversary of the grant
date. The options expire on July 1, 2017. Other material
provisions of Mr. O'Reilly's employment arrangement remain
unchanged.
About IMAX Corp.
IMAX Corp. -- http://www.imax.com/-- together with its wholly
owned subsidiaries, is an entertainment technology company
specializing in motion picture technologies and large-format film
presentations. Its principal business is the design and
manufacture of large-format digital and film-based theater
systems, sale or lease of such systems, and the conversion of
two-dimensional (2D) and three-dimensional (3D) Hollywood feature
films for exhibition on such systems worldwide.
At September 30, 2009, the Company had $308,965,000 in total
assets against $268,730,000 in total liabilities. As of June 30,
2009, the Company had $270,400,000 in total assets and
$288,500,000 in total liabilities, resulting in $18,100,000 in
stockholders' deficit.
* * *
As reported by the Troubled Company Reporter on November 23, 2009,
Standard & Poor's Ratings Services raised its ratings on IMAX
Corp. S&P raised its corporate credit rating on the company to
'B-' from 'CCC+'. The rating outlook is stable.
INTEGRITY BANK: Two Former Execs Plead Guilty to Fraud Charges
--------------------------------------------------------------
Dow Jones Newswires' Kathy Shwiff reports that two Georgia bankers
pleaded guilty Tuesday to charges related to Integrity Bank, which
failed and was taken over by the Federal Deposit Insurance Corp.
in August 2008:
-- Douglas Ballard, 40, pleaded guilty to one count of
conspiracy to commit bank fraud and to receive bribes and
one count of tax evasion. He faces up to 10 years in
prison and a fine of up to $500,000.
-- Joseph Foster, 42, pleaded guilty to securities fraud.
He faces up to 20 years in prison and a fine of up to
$5 million.
Both Atlanta residents were senior vice presidents of Integrity.
According to the report, prosecutors said Mr. Ballard admitted in
federal court that he received more than $200,000 in cash and
other payments from the bank's major customer, co-defendant Guy
Mitchell, in exchange for assistance in distributing nearly $20
million in loan proceeds to Mr. Mitchell's personal account.
The report says Mr. Foster was accused of "insider trading" and
admitted that he sold nearly all his shares of Integrity based on
his knowledge through his job that the bank was facing a increased
risk that Mr. Mitchell would default on more than $80 million in
outstanding loans.
Sentencing hasn't been scheduled. Both defendants have agreed to
cooperate in an ongoing investigation.
IRINEO FLORES: Case Summary & 19 Largest Unsecured Creditors
------------------------------------------------------------
Joint Debtors: Irineo Flores
Angela D. Flores
19013 Keswick Street
Reseda, CA 91335
Bankruptcy Case No.: 10-17981
Chapter 11 Petition Date: July 1, 2010
Court: United States Bankruptcy Court
Central District Of California (San Fernando Valley)
Judge: Maureen Tighe
Debtor's Counsel: John H. Bauer, Esq.
16103 W Augusta Ave
Litchfield Park, AZ 85340
Tel: (623) 910-6291
Fax: (623) 322-3859
E-mail: johnbhud@aol.com
Scheduled Assets: $2,844,105
Scheduled Debts: $4,643,597
A list of the Company's 19 largest unsecured creditors
filed together with the petition is available for free
at http://bankrupt.com/misc/cacb10-17981.pdf
The petition was signed by Irineo Flores and Angela D. Flores.
IRVINE SENSORS: Inks Subscription Deals With 18 Investors
---------------------------------------------------------
Irvine Sensors Corporation entered into Subscription Agreements
with 18 accredited investors, pursuant to which the Company sold
and issued to the Investors an aggregate of 19,022.47 common stock
units at a purchase price of $20.025 per Unit in an initial
closing of a private placement. The Unit Price was equal to 100
shares of the Company's Common Stock multiplied by 75% of the last
consolidated closing bid price of the Company's Common Stock as
determined in accordance with Nasdaq rules immediately preceding
the Company entering into the binding Subscription Agreements.
The $380,925 aggregate purchase price for these Units was paid in
cash to the Company.
Each Unit is comprised of:
i) 100 shares of the Company's Common Stock and
ii) a five-year warrant to purchase 20 shares of the Company's
Common Stock.
The exercise price applicable to the Investor Warrants is $0.32
per share, which was greater than the last consolidated closing
bid price of the Company's Common Stock as determined in
accordance with Nasdaq rules immediately preceding the Company
entering into the binding Subscription Agreements.
A total of 1,902,236 Shares were issued and the total number of
shares of Common Stock issuable upon exercise of the Investor
Warrants at the exercise price is 380,441 in the aggregate. The
Company may at its option expand this Private Placement.
In consideration for services rendered as the lead placement agent
in the Private Placement, on June 25, 2010, the Company paid the
placement agent cash commissions, a management fee and an expense
allowance fee aggregating $49,520.25, which represents 13% of the
gross proceeds of the initial closing of the Private Placement,
the Company paid the placement agent an expense reimbursement of
$5,000 and the Company issued to the placement agent a five-year
warrant to purchase an aggregate of 247,292 shares of the
Company's Common Stock at an exercise price of $0.32 per share,
which was greater than the last consolidated closing bid price of
the Company's Common Stock as determined in accordance with Nasdaq
rules immediately preceding the Company entering into such
warrant.
The Investor Warrants and Agent Warrant may be exercised in cash
or pursuant to a net exercise provision if the Company does not
register the shares of Common Stock issuable upon exercise of the
Investor Warrants or Agent Warrant on or prior to the six-month
anniversary of the issuance date of the warrants. The Investor
Warrants and the Agent Warrant cannot be exercised for a period of
6 months and one day following the date of their issuance. The
exercise price of the Investor Warrants and the Agent Warrant is
subject to adjustment for stock splits, stock dividends,
recapitalizations and the like. The Investor Warrants and Agent
Warrant also are subject to a blocker that would prevent each
holder's Common Stock ownership at any given time from exceeding
4.99% of the Company's outstanding Common Stock.
None of the Units, Shares, Investor Warrants or Agent Warrant,
or the Common Stock issuable upon exercise thereof, has been
registered under the Securities Act of 1933 and none may be
offered or sold absent registration or an applicable exemption
from registration. The Company does not plan to register the
Units, Shares, Investor Warrants or Agent Warrant, or the Common
Stock issuable upon exercise thereof.
The number of shares of the Company's Common Stock outstanding
immediately after the closing of the Private Placement was
24,435,900 shares.
About Irvine Sensors
Irvine Sensors Corporation -- http://www.irvine-sensors.com/--
headquartered in Costa Mesa, California, is a vision systems
company engaged in the development and sale of miniaturized
infrared and electro-optical cameras, image processors and stacked
chip assemblies and sale of higher level systems incorporating
such products and research and development related to high density
electronics, miniaturized sensors, optical interconnection
technology, high speed network security, image processing and low-
power analog and mixed-signal integrated circuits for diverse
systems applications.
At March 28, 2010, the Company had total assets of $6,184,700
against total liabilities of $13,111,400, and non-controlling
interest of $324,400, resulting in stockholders' deficit of
$6,926,700.
Optex Systems, Inc., a Texas corporation and a wholly owned
subsidiary of Irvine Sensors, on September 21, 2009, filed a
voluntary petition for relief under Chapter 7 of the United States
Bankruptcy Code in the United States Bankruptcy Court in
California.
JAIME GONZALEZ: Case Summary & 20 Largest Unsecured Creditors
-------------------------------------------------------------
Joint Debtors: Jaime Gonzalez
Gloria Gonzalez
208 Roundhill Place
Clayton, CA 94517
Bankruptcy Case No.: 10-47600
Chapter 11 Petition Date: July 2, 2010
Court: U.S. Bankruptcy Court
Northern District of California (Oakland)
Judge: Leslie J. Tchaikovsky
Debtor's Counsel: Matthew R. Eason, Esq.
Law Offices of Eason and Tambornini
1819 K Street #200
Sacramento, CA 95811
Tel: (916) 438-1819
E-mail: matthew@capcitylaw.com
Estimated Assets: $10,000,001 to $50,000,000
Estimated Debts: $10,000,001 to $50,000,000
According to the schedules, the Debtors say that assets total
$21,079,006 while debts total $25,990,855.
The petition was signed by the Joint Debtors.
Debtor's List of 20 Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
------ --------------- ------------
JP Morgan Chase Bank, N.A. Wedgewood $7,342,905
Royal Ridge Operations Center Commons
P.O. Box 650528 Apartments
Dallas, TX 75265-0528
JP Morgan Chase Bank, N.A. Regency $6,408,632
Royal Ridge Operations Center Apartments
P.O. Box 650528
Dallas, TX 75265-0528
JP Morgan Chase Bank, N.A. Park Hills $4,837,001
Royal Ridge Operations Center Apartments
P.O. Box 650528
Dallas, TX 75265-0528
JP Morgan Chase Bank, N.A. Tiffany $3,303,554
Royal Ridge Operations Center Manor
P.O. Box 650528 Apartments
Dallas, TX 75265-0528
Midland Loan Services, Inc. Potential $2,161,002
1223 Solutions Center contingent
Chicago, IL 60677-1002 liability
City of Sacramento Utility Bills $125,504
City of Sacramento Utilities - Special $91,183
Assessment
City of Sacramento Utilities $71,475
Hipolito Romero Personal Loan $50,000
Sacramento County Utilities Utilities $46,390
City of Sacramento Utilities - Special $46,191
Assessment
Bank of America Credit Card $14,160
Purchases
Halverson Associates Legal Bills $6,136
City of Sacramento -- $6,048
Revenue Division
Law Office of Sid Rosenberg Legal Fees $5,994
Harris, Rosales, Harris Legal Fees $2,480
Gemb/Chevron ChargeAccount $2,005
Sears/Cbsd ChargeAccount $1,698
Bernardo Silva Legal Fees $1,170
Gemb/Jcp ChargeAccount $645
JEFFERSON COUNTY: Biz Leaders Form Group to Address Sewer Debt
--------------------------------------------------------------
Kelly Nolan at Dow Jones Newswires reports that a group of
prominent Birmingham-area business leaders -- with support from
Alabama Gov. Bob Riley -- have been trying to find a solution for
Jefferson County's $3.2 billion in sewer debt, aiming to avoid
what would be the largest municipal bankruptcy in history. The
group includes HealthSouth Corp. Chief Executive Jay Grinney and
Protective Life Corp. CEO John Johns. David Brownstein, managing
director and co-head of public finance at Citigroup Global Markets
Inc., has also had discussions with the business group, acting as
a facilitator.
According to Dow Jones, the discussions have revolved around the
idea that creditors would write down a significant portion of the
sewer debt, restructuring the rest at fixed rates, and limiting
sewer rate increases to the rate of inflation.
Dow Jones says the hope is that the governing five-member
Jefferson County Commission would accept the group's ideas, which
could then be presented to bondholders and creditors, the largest
of which is J.P. Morgan.
"We would absolutely like to see a solution to the sewer debt,"
Dow Jones quotes David Rickey -- senior vice president and
spokesman for the Birmingham Business Alliance, some of whose
members have been involved in the discussions -- as saying. "It's
a major issue, not just for the business community, but for the
population of the entire county as a whole."
According to Dow Jones, Messrs. Johns and Grinney, both executive
committee members of the business alliance, declined to comment.
A Citigroup spokesman had no comment, noting Citi didn't take any
part in underwriting any of the sewer debt. A J.P. Morgan
spokesman declined to comment.
About Jefferson County
Jefferson County has its seat in Birmingham, Alabama. It has a
population of 660,000. It ended its 2006 fiscal year with a
$42.6 million general fund balance, according to Standard &
Poor's.
Jefferson County is trying to restructuring $3.2 billion in sewer
debt. A bankruptcy by Jefferson County stands to be the largest
municipal bankruptcy in U.S. history. It could beat the record of
$1.7 billion, set by Orange County, California in 1994.
* * *
As reported by the Troubled Company Reporter on April 11, 2010,
Standard & Poor's Ratings Services affirmed its 'C' underlying
rating on Jefferson County, Ala.'s series 1997A, 1997D, 2001A,
2003-B-8, 2003 B-1-A through series 2003 B-1-E, and series 2003
C-1 through 2003 C-10 sewer system revenue bonds. S&P removed the
ratings from CreditWatch with negative implications, where they
had been placed Sept. 16, 2008. The outlook is negative.
JEFFREY COHEN: Voluntary Chapter 11 Case Summary
------------------------------------------------
Debtor: Jeffrey Adam Cohen
1673 Hillshire Pl NE
Atlanta, GA 30329-3856
Bankruptcy Case No.: 10-79193
Chapter 11 Petition Date: July 2, 2010
Court: U.S. Bankruptcy Court
Northern District of Georgia (Atlanta)
Judge: Robert Brizendine
Debtor's Counsel: Patricia S. Glover, Esq.
Charlton & Glover, PC
87 Vickery Street
Roswell, GA 30075
Tel: (770) 993-1005
E-mail: chrltnglvr@aol.com
Estimated Assets: $0 to $50,000
Estimated Debts: $1,000,001 to $10,000,000
The Debtor did not file a list of creditors together with its
petition.
The petition was signed by the Debtor.
JESUP & LAMONT: Receives Notice From NYSE Amex
----------------------------------------------
Jesup & Lamont Inc. received notice from the NYSE Amex, LLC that
its shares of common stock were subject to removal from listing on
the Exchange pursuant to Section 1003(a)(iv) of the Company Guide
in that its financial resources, or its financial condition has
become so impaired that it appears questionable, in the opinion of
the Exchange, as to whether to Company will be able to continue
operations and/or meet its obligations as they mature; and Section
1003(c)(i) of the Company Guide in that the Company has
discontinued a substantial portion of its operations.
Furthermore, in accordance with commentary .01 to Section 1009 of
the Company Guide, Staff has determined that given the Company's
financial impairment and significant reduction in operations and
for the protection of investors, it is appropriate to initiate
immediate delisting proceedings. The Company has a right, for a
limited period of time to appeal this determination, but has not
yet made a decision as to whether to exercise this right.
JODENE PUFF: Case Summary & 20 Largest Unsecured Creditors
----------------------------------------------------------
Debtor: Jodene Audrey Puff
1747 150th Street
Hazleton, IA 50641
Bankruptcy Case No.: 10-01877
Chapter 11 Petition Date: July 1, 2010
Court: U.S. Bankruptcy Court
Northern District of Iowa (Waterloo)
Debtor's Counsel: Robert Cardell Gainer, Esq.
505 5th Avenue, Suite 835
Des Moines, IA 50309
Tel: (515) 243-1249
Fax: (515) 244-4471
E-mail: gainer@dwx.com
Estimated Assets: $500,001 to $1,000,000
Estimated Debts: $1,000,001 to $10,000,000
According to the schedules, the Debtor says that assets total
$824,512 while debts total $3,554,817.
A copy of the Debtor's list of 20 largest unsecured
creditors filed together with the petition is available for
free at http://bankrupt.com/misc/ianb10-01877.pdf
The petition was signed by the Debtor.
JOHN GROUT: Case Summary & 20 Largest Unsecured Creditors
---------------------------------------------------------
Joint Debtors: John Frederick Grout
Ressie Lynette Grout
aka Lynnette L Grout
aka Lynette L Greenburg
aka Lynette L Corbette
27571 Riverbank Dr
Bonita Springs, FL 34134
Bankruptcy Case No.: 10-16096
Chapter 11 Petition Date: July 1, 2010
Court: United States Bankruptcy Court
Middle District of Florida (Ft. Myers)
Debtor's Counsel: Joseph Trunkett, Esq.
The Trunkett Law Group, LLC
2271 McGregor Blvd., Suite 300
Fort Myers, FL 33901
Tel: (239) 790-4529
Fax: (239) 790-5404
E-mail: jtrunkett@trunkettlaw.com
Scheduled Assets: $1,380,519
Scheduled Debts: $2,139,766
A list of the Company's 20 largest unsecured creditors
filed together with the petition is available for free
at http://bankrupt.com/misc/flmb10-16096.pdf
The petition was signed by John Frederick Grout and Ressie Lynette
Grout.
JOSEPH GRAVELL: Case Summary & 20 Largest Unsecured Creditors
-------------------------------------------------------------
Joint Debtors: Joseph Scott Gravell
aka Joey Gravell
Isailia Silvette Cruz-Gravell
P.O. Box 2222
Lawrenceville, GA 30046
Bankruptcy Case No.: 10-78920
Chapter 11 Petition Date: July 1, 2010
Court: U.S. Bankruptcy Court
Northern District of Georgia (Atlanta)
Judge: Margaret Murphy
Debtor's Counsel: Ian M. Falcone, Esq.
The Falcone Law Firm PC
363 Lawrence Street
Marietta, GA 30060
Tel: (770) 426-9359
E-mail: attorneys@falconefirm.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
A copy of the Debtors' list of 20 largest unsecured
creditors filed together with the petition is available for
free at http://bankrupt.com/misc/ganb10-78920.pdf
The petition was signed by the Joint Debtors.
KEVIN MCGUINNESS: Case Summary & 16 Largest Unsecured Creditors
---------------------------------------------------------------
Joint Debtors: Kevin McGuinness
Alice McGuinness
274 Main Street
Emerson, NJ 07630
Bankruptcy Case No.: 10-30402
Chapter 11 Petition Date: July 1, 2010
Court: U.S. Bankruptcy Court
District of New Jersey (Newark)
Judge: Rosemary Gambardella
Debtor's Counsel: Andre L. Kydala, Esq.
12 Lower Center Street
P.O. Box 5537
Clinton, NJ 08809
Tel: (908) 735-2616
Fax: (908) 735-0765
E-mail: kydalalaw@aim.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
A copy of the Debtors' list of 16 largest unsecured
creditors filed together with the petition is available for
free at http://bankrupt.com/misc/njb10-30402.pdf
The petition was signed by the Joint Debtors.
LAKEVIEW AT CAROLINA: Case Summary & 7 Largest Unsecured Creditors
------------------------------------------------------------------
Debtor: Lakeview at Carolina Beach, LLC
15770 North Dallas Parkway
Suite 700
Dallas, TX 75248
Bankruptcy Case No.: 10-34542
Chapter 11 Petition Date: July 1, 2010
Court: United States Bankruptcy Court
Northern District of Texas (Dallas)
Judge: Harlin DeWayne Hale
Debtor's Counsel: Eric A. Liepins, Esq.
12770 Coit Rd., Suite 1100
Dallas, TX 75251
Tel: (972) 991-5591
E-mail: eric@ealpc.com
Scheduled Assets: $10,902,000
Scheduled Debts: $9,486,585
The petition was signed by Bruce West Sr., vice president of
managing member.
Debtor's List of 7 Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
------ --------------- ------------
JR Realty Corp $1,725,259
15770 North Dallas Parkway
SUite 700
Dallas, TX 75248
Jubilee Park at Carolina $117,583
Beach
15770 N. Dallas PArkway
Suite 700
Dallas, TX 75248
City of Carolina Beach $68,000
1121 N. Park Blvd.
Carolina Beach, NC 28428
City of Carolina Beach $1,181
GE Appliances $700
Ahhh Air $300
TA Woods $255
LEAP WIRELESS: District Court OKs Shareholders Suit Settlement
--------------------------------------------------------------
The United States District Court for the Southern District of
California has preliminarily approved the proposed settlement of a
shareholder derivative suit pending on behalf of Leap Wireless
International, Inc.
The proposed settlement will also resolve a similar shareholder
derivative suit pending in the California Superior Court for the
County of San Diego. The derivative suits assert claims on behalf
of the Company against certain of its current and former directors
and officers and relate primarily to the Company's 2007
restatement of certain financial statements to correct for errors
in previously reported service revenues, equipment revenues, and
operating expenses.
The individual defendants have denied liability and wrongdoing of
any kind with respect to the claims made in the derivative suits
and make no admission of any wrongdoing in connection with the
proposed settlement. The settlement is a non-monetary settlement
based upon the Company's agreement to make various corporate and
operational changes, and to fund, through its insurance carriers,
an award of attorneys' fees to plaintiffs' counsel.
The Court has set a settlement hearing date of August 9, 2010.
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 March 31, 2010, the Company had total assets of $5,259,706,000
from total liabilities of $3,578,532,000 and redeemable non-
controlling interests of $51,768,000, resulting in stockholders'
equity of $1,629,406,000.
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.
* * *
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.
LEHMAN BROTHERS: Sallah & Cox Pursues Claims Against UBS
--------------------------------------------------------
The Law Firms of Sallah & Cox, LLC and Blum & Silver, LLP are
continuing to investigate and pursue claims against UBS for its
sales of Principal Protected Notes issued by Lehman Brothers.
This announcement comes in the wake of a July 2, 2010 Bloomberg
news article reporting that the SEC is looking into how several
firms marketed securities that lost in excess of $1 billion as
"principal-protected." According to Bloomberg, a source stated
that the SEC is looking at how firms described the PPNs' risks and
whether the term "principal-protected" misleadingly implies that
the investment is guaranteed not to decline in value.
The Sallah & Cox and Blum & Silver investigation, which preceded
the SEC inquiry by nearly a year, has determined that UBS sold
hundreds of millions of dollars worth of Lehman PPNs and, in many
instances, described them as safe investments that were
"guaranteed" against the loss of principal. Following Lehman's
demise on September 15, 2008, the PPNs went into default causing
the holders to become unsecured creditors in the Lehman bankruptcy
proceeding. To date, Sallah & Cox and Blum & Silver have filed
over one dozen cases against UBS, seeking damages of over $10
million collectively, based solely on its sales of PPNs to retail
and corporate investors.
For additional information or to further discuss these matters,
investors should contact either:
Scott L. Silver, Esq. James D. Sallah, Esq.
Blum & Silver, LLP Sallah & Cox, LLC
1-888-SEC- ATTY
1-877-STOCK LAW (1-877-786-2552) (1-888-732-2889)
http://www.stockattorneys.com
Additional information can also be found at their joint website
dedicated to these issues at
http://www.principalprotectednotesattorneys.comor simply,
http://www.ppnattorneys.com.
Scott L. Silver of Blum & Silver, LLP and James D. Sallah of
Sallah & Cox, LLC were recently awarded the most effective
Securities Lawyers in South Florida by the Daily Business Review.
They received this esteemed accolade for their success in
obtaining one of the largest arbitration awards ever awarded
against an individual broker. A FINRA panel awarded a group of
investors over $7 million, including over $4 million in punitive
damages, against former UBS broker, Gary J. Gross based upon what
the panel found to be Gross's "willful and wanton" conduct and in
"flagrant disregard" of the investors rights.
Blum & Silver, LLP is a nationally-recognized securities law firm
headquartered in South Florida, with a satellite office in New
York, representing investors worldwide with their claims for
losses due to stockbroker misconduct and brokerage firm negligence
in securities litigation and arbitration matters. The firm has
successfully recovered multi-million dollar awards for its clients
against the country's top brokerage houses.
Sallah & Cox, LLC is located in Boca Raton, Florida. The firm
consists of former SEC Enforcement attorneys who represent clients
throughout the United States and Latin America in stockbroker
misconduct and investment fraud cases. This firm has represented
investors against most major Wall Street brokerage firms in claims
involving stocks, options, auction rate securities, hedge funds,
mutual funds, and bonds.
Blum & Silver's and Sallah & Cox, LLC's attorneys speak English
and Spanish, and they are licensed to practice law in Florida,
Colorado, New York and New Jersey.
LEELAND REAL: Case Summary & 2 Largest Unsecured Creditors
----------------------------------------------------------
Debtor: Leeland Real Properties, LLC
fka Windwater Development, LLC
9692 Westheimer, Suite 219
Houston, TX 77063
Bankruptcy Case No.: 10-35487
Chapter 11 Petition Date: July 2, 2010
Court: U.S. Bankruptcy Court
Southern District of Texas (Houston)
Judge: Karen K. Brown
Debtor's Counsel: Larry A. Vick, Esq.
Attorney at Law
908 Town & Country Boulevard, Suite 120
Houston, TX 77024
Tel: (713) 333-6440
Fax: (713) 343-4757
E-mail: lv@larryvick.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
A copy of the Debtor's list of 2 largest unsecured creditors
filed together with the petition is available for free
at http://bankrupt.com/misc/txsb10-35487.pdf
The petition was signed by Andrew Choy, managing member.
LEXI DEV'T: Wants to Sell Nine Residential Condominium Units
------------------------------------------------------------
Lexi Development Company, Inc., has asked for authorization from
the U.S. Bankruptcy Court for the Southern District of Florida to
sell nine residential condominium units free and clear of liens,
claims and encumbrances.
Due to the current real estate market conditions, the Debtor must
be able to sell units at prices that reflect the current realities
of the market.
The Debtor didn't disclose who the purchaser of the units is.
North Bay LLC has approved the terms of the pending sales units
and consents to the sales. After payment of closing costs and
real estate taxes, the net sales proceeds from the pending sale
units will reduce the amount of the loan by approximately
$2,375,000 for a new reduced loan amount of $7,725,000.
In December 2005, the Debtor executed and delivered to a syndicate
of lenders led by Regions Bank a $56,875,000 construction loan
agreement. On the Closing Date, the Debtor executed and delivered
to Regions a Promissory Note in the original principal amount of
$25,000,000. The Debtor also executed and delivered promissory
notes in favor of (i) Bank Midwest in the original principal
amount of $10,937,500; (ii) First Charter in the original
principal amount of $10,000,000; (iii) Banco Popular in the
original principal amount $10,937,500. Upon information and
belief, in January 2009, the lenders purportedly sold and assigned
to North Bay.
As of the Petition Date, the Debtor has paid down the original
loan of $56,875,000 to $10,160,000, not including any alleged
default rate interest, which the Debtor disputes, and also not
including the pending sales units which will further pay down the
loan.
South Miami, Florida-based Lexi Development Company, Inc., filed
for Chapter 11 bankruptcy protection on June 23, 2010 (Bankr. S.D.
Fla. Case No. 10-27573). The Company estimated its assets and
debts at $10,000,001 to $50,000,000.
LINCOLNSHIRE CAMPUS: Proposes to Hire A&M, Paul Rundell
-------------------------------------------------------
The Lincolnshire Debtors seek authority from the Court to:
(a) employ Alvarez & Marsal Healthcare Industry, LLC, as their
crisis managers; and
(b) designate Paul Rundell as their chief restructuring
officer, nunc pro tunc to the Petition Date.
As the Lincolnshire Debtors' CRO, Mr. Rundell will report to the
Lincolnshire Debtors' board of directors and direct the
Lincolnshire Debtors' reorganization.
As members of the Lincolnshire Debtors' senior management, Mr.
Rundell, with the help of additional A&M personnel, will provide
senior management services, which include these:
(A) The CRO, together with any Additional Personnel, in
cooperation with the executive management of the
Lincolnshire Debtors, will perform a financial review of
the Lincolnshire Debtors, including a review and
assessment of financial information that has been, and
that will be, provided by the Lincolnshire Debtors to
their creditors, including their short term cash flows.
(B) The CRO will oversee Additional Personnel assisting in the
identification of cost reduction and operations
improvement opportunities as well as other liquidity
savings opportunities.
(C) The CRO and any Additional Personnel will assist
the Lincolnshire Debtors' management in developing for the
review of possible restructuring plans or strategic
alternatives for maximizing the enterprise value of the
Lincolnshire Debtors and developing a sustainable capital
structure for them.
(D) The CRO will serve as the principal contact with the
Lincolnshire Debtors' creditors and consultants with
respect to the Lincolnshire Debtors' financial and
operational matters.
(E) The CRO and Additional Personnel, under advisement of the
Management, will manage the Lincolnshire Debtors'
liquidity, cash flows, modeling, budgets and financial
planning.
(F) The CRO and any Additional Personnel will perform those
other services as requested or directed by the Management
and agreed to by that officer.
The Lincolnshire Debtors will pay the CRO and A&M's other
professionals according to their hourly rates:
Title Rate per Hour
----- -------------
Managing Directors $600 to $700
Senior Directors $475 to $550
Directors $400 to $500
Associates $325 to $400
Analysts $200 to $275
The Lincolnshire Debtors will reimburse A&M for the actual and
necessary expenses the firm incurs.
The Lincolnshire Debtors disclose that the Erickson Retirement
Communities LLC Debtors paid about $4,063,556 to A&M for services
rendered before the ERC Debtors' Petition Date. As of the
Lincolnshire Debtors' Petition Date, A&M holds a $83,630 retainer
and intends to apply that retainer against the final fees and
expenses in the Lincolnshire Debtors' Chapter 11 cases.
Mr. Rundell, a managing director at A&M, reveals that his firm
currently represents or has previously represented certain
parties in matters unrelated to the Lincolnshire Debtors' Chapter
11 cases, a list of which parties is available for free at:
http://bankrupt.com/misc/Lincolnshire_A&MClients.pdf
Mr. Rundell discloses that DLA Piper LLP; Mintz Levin Cohn Ferris
Glovsky and Popeo PC; PricewaterhouseCoopers LLP and Whiteford
Taylor and Preston engaged A&M on behalf of their clients. He
further states that:
(a) a managing director of A&M serves on the board of
directors of Maxim Healthcare and A&M also provides
certain advisory services to Maxim. A Maxim affiliate is
a potential bidder for the Lincolnshire Debtors' assets.
(b) A&M completed a portfolio review for a large financial
institution, with respect to its outstanding loan to
another financial institution. Sedgebrook, Inc. is one of
several thousand loans in that financial institution's
portfolio and the loan to Sedgebrook is significantly less
than 1.0% of that portfolio.
Despite those disclosures, Mr. Rundell assures the Court that A&M
is a "disinterested person" as the term is defined under Section
101(14) of the Bankruptcy Code.
About the Debtors
Lincolnshire Campus filed for Chapter 11 bankruptcy protection on
June 15, 2010 (Bankr. N.D. Tex. Case No. 10-34176). Vincent P.
Slusher, Esq., at DLA Piper LLP US, assists the Company in its
restructuring effort. The Company estimated its assets and debts
at $100,000,001 to $500,000,000.
Not-for-Profit Entities Sedgebrook, Inc. and Monarch Landing Inc.
filed for Chapter 11 on June 15, 2010.
The Lincolnshire Debtors and the NFP Debtors are affiliate of
Erickson Retirement Communities LLC.
Baltimore, Maryland-based Erickson Retirement Communities LLC,
along with affiliates, filed for Chapter 11 on Oct. 19, 2009
(Bankr. N.D. Tex. Case No. 09-37010). DLA Piper LLP (US) serves
as counsel to the Debtors. BMC Group Inc. serves as claims and
notice agent. Houlihan, Lokey, Howard & Zoukin, Inc., is also
serving as investment and financial consultant. Alvarez & Marsal
is serving as restructuring adviser. Judge Stacey G.C. Jernigan
confirmed Erickson's Plan of Reorganization on April 16, 2010.
The confirmed Chapter 11 Plan is premised on the $365 million sale
of substantially all of the Erickson Retirement assets to Redwood
Capital Investments LLC and its affiliates. The Plan became
effective on April 30, 2010.
Erickson own 20 continuing care retirement communities in 11
states. Among Erickson's 20 communities, eight are completed, 11
are open although in construction, and one is in development.
They have 23,000 residents in total.
Bankruptcy Creditors' Service, Inc., publishes Erickson Retirement
Bankruptcy News. The newsletter tracks the Chapter 11 proceedings
of Erickson Retirement Communities LLC and Lincolnshire Campus.
(http://bankrupt.com/newsstand/or 215/945-7000)
LINCOLNSHIRE CAMPUS: Seeks Schedules Filing Extension
-----------------------------------------------------
In separate filings, the Lincolnshire Debtors ask the Bankruptcy
Court to extend the deadline to file their schedules of assets
and liabilities and statement of financial affairs to these
dates:
Debtor Proposed Deadline
------ -----------------
Lincolnshire Campus, LLC July 21, 2010
and Naperville Campus, LLC
Sedgebrook, Inc. and July 30, 2010
Monarch Landing, Inc.
Lincolnshire Campus and Naperville Campus' proposed schedules
filing deadline is through and including the day before the first
meeting of creditors under Section 341 of the Bankruptcy Code
currently set for July 22, 2010.
Sedgebrook and Monarch Landing's proposed extension is 30
additional days beyond the 15 days provided under Rule 1007(c) of
the Federal Rules of Bankruptcy Procedure.
Sedgebrook and Monarch Landing have not yet commenced the
preparation of their Schedules and Statements because of the
nature of their bankruptcy filings, Paul Rundell, chief
restructuring officer of Senior Living Retirement Communities LLC
f/k/a Erickson Retirement Communities, LLC asserts. At this
juncture, he states, the proposed extension will provide the
Debtors enough time to prepare and file the Schedules and
Statements.
Similarly, given the fact that the Lincolnshire Debtors filed
their bankruptcy petitions in a statement of emergency,
Lincolnshire Campus and Naperville Campus do not believe the
15-day automatic extension to file the Schedules and Statements
allows them sufficient time to complete their Schedules and
Statements, Vincent P. Slusher, Esq., at DLA Piper LLP, in
Dallas, Texas, counsel to Lincolnshire and Naperville Campuses,
points out.
* * *
The Court scheduled a June 24, 2010 hearing on the Schedules
Extension Motions with respect to Sedgebrook and Monarch Landing.
As of July 4, 2010, no order with respect to the proposed
Schedules filing deadline extension has been entered in the
Court's public dockets.
On the other hand, Judge Jernigan grants the Schedules filing
extension request of Lincolnshire Campus and Naperville Campus,
without prejudice to their right to seek further extensions of
time within which to file the Schedules and Statements.
About the Debtors
Lincolnshire Campus filed for Chapter 11 bankruptcy protection on
June 15, 2010 (Bankr. N.D. Tex. Case No. 10-34176). Vincent P.
Slusher, Esq., at DLA Piper LLP US, assists the Company in its
restructuring effort. The Company estimated its assets and debts
at $100,000,001 to $500,000,000.
Not-for-Profit Entities Sedgebrook, Inc. and Monarch Landing Inc.
filed for Chapter 11 on June 15, 2010.
The Lincolnshire Debtors and the NFP Debtors are affiliate of
Erickson Retirement Communities LLC.
Baltimore, Maryland-based Erickson Retirement Communities LLC,
along with affiliates, filed for Chapter 11 on Oct. 19, 2009
(Bankr. N.D. Tex. Case No. 09-37010). DLA Piper LLP (US) serves
as counsel to the Debtors. BMC Group Inc. serves as claims and
notice agent. Houlihan, Lokey, Howard & Zoukin, Inc., is also
serving as investment and financial consultant. Alvarez & Marsal
is serving as restructuring adviser. Judge Stacey G.C. Jernigan
confirmed Erickson's Plan of Reorganization on April 16, 2010.
The confirmed Chapter 11 Plan is premised on the $365 million sale
of substantially all of the Erickson Retirement assets to Redwood
Capital Investments LLC and its affiliates. The Plan became
effective on April 30, 2010.
Erickson own 20 continuing care retirement communities in 11
states. Among Erickson's 20 communities, eight are completed, 11
are open although in construction, and one is in development.
They have 23,000 residents in total.
Bankruptcy Creditors' Service, Inc., publishes Erickson Retirement
Bankruptcy News. The newsletter tracks the Chapter 11 proceedings
of Erickson Retirement Communities LLC and Lincolnshire Campus.
(http://bankrupt.com/newsstand/or 215/945-7000)
LINCOLNSHIRE CAMPUS: Seeks to Sell All Assets for $43MM
-------------------------------------------------------
Lincolnshire Campus, LLC, and its debtor affiliates seek
permission from the U.S. Bankruptcy Court for the Northern
District of Texas to sell substantially all of their assets, free
and clear of all liens, to Senior Care Development, LLC, for
$43,270,000, subject to higher and better bids.
The Lincolnshire Debtors and SCD executed an asset purchase
agreement, contemplating the sale of all assets of Debtors
Monarch Landing, Inc., and Sedgebrook, Inc., for $43,270,000.
The total consideration of $43,270,000 is composed of:
(i) $14 million cash,
(ii) the assumption of Debtor Sedgebrook, Inc.'s bonds for
$14,515,000; and
(iii) the assumption of Debtor Monarch Landing, Inc.'s bonds for
$14,755,000.
A summary of the relevant terms of the APA is available for free
at http://bankrupt.com/misc/Lincolnshire_SeniorCareAPA.pdf
The Lincolnshire Debtors further seek approval of uniform
procedures to govern the bidding process in relation to the
proposed sale.
The Lincolnshire Debtors also seek permission to entitle bid
protections to SCD as the proposed stalking horse bidder,
including a break-up fee of $1,500,000, of which amount includes
a expense reimbursement component of up to $350,000.
To be eligible to bid, each potential bidder must, among others,
offer a purchase price that is greater than $45,020,000, which is
the purchase price plus the break-up fee, plus $250,000. All
qualified bids must be received on or before September 8, 2010.
If one or more qualified bids are received, the Lincolnshire
Debtors will hold an auction on September 14, 2010.
A full-text copy of the proposed Bidding Procedures is available
for free at:
http://bankrupt.com/misc/Lincolnshire_BiddingProcedures.pdf
As contemplated under Erickson Retirement Communities, LLC's
Fourth Amended Plan of Reorganization, the Lincolnshire Debtors
were negotiating the potential sale of their campuses and other
facilities. The sale of substantially all of the Lincolnshire
Debtors' assets represents the only likely basis for
Lincolnshire's exit from Chapter 11, Vincent P. Slusher, Esq., at
DLA Piper LLP, in Dallas, Texas, tells Judge Jernigan.
In connection with the proposed sale under Section 363 of the
Bankruptcy Code, the Lincolnshire Debtors intend to file a
liquidating plan of reorganization, Mr. Slusher discloses. The
Lincolnshire Debtors expect to file that plan and disclosure
statement before a hearing on the Sale Motion.
At the behest of the Lincolnshire Debtors, the Court scheduled an
expedited hearing on the Sale Motion for July 16, 2010. The Sale
Motion seeks entry of two orders: (i) an order approving the
proposed Bid Procedures and providing certain bid protections to
SCD as the proposed stalking horse bidder; and (ii) an order
authorizing the sale of substantially all of the Lincolnshire
Debtors' assets to the Stalking Horse Buyer or a successful
bidder.
The Lincolnshire Debtors emphasized that a sale of substantially
all of their assets is the most efficient way to protect the
interest of their residents and wish to proceed with the sale in
as expeditious manner as possible.
About the Debtors
Lincolnshire Campus filed for Chapter 11 bankruptcy protection on
June 15, 2010 (Bankr. N.D. Tex. Case No. 10-34176). Vincent P.
Slusher, Esq., at DLA Piper LLP US, assists the Company in its
restructuring effort. The Company estimated its assets and debts
at $100,000,001 to $500,000,000.
Not-for-Profit Entities Sedgebrook, Inc. and Monarch Landing Inc.
filed for Chapter 11 on June 15, 2010.
The Lincolnshire Debtors and the NFP Debtors are affiliate of
Erickson Retirement Communities LLC.
Baltimore, Maryland-based Erickson Retirement Communities LLC,
along with affiliates, filed for Chapter 11 on Oct. 19, 2009
(Bankr. N.D. Tex. Case No. 09-37010). DLA Piper LLP (US) serves
as counsel to the Debtors. BMC Group Inc. serves as claims and
notice agent. Houlihan, Lokey, Howard & Zoukin, Inc., is also
serving as investment and financial consultant. Alvarez & Marsal
is serving as restructuring adviser. Judge Stacey G.C. Jernigan
confirmed Erickson's Plan of Reorganization on April 16, 2010.
The confirmed Chapter 11 Plan is premised on the $365 million sale
of substantially all of the Erickson Retirement assets to Redwood
Capital Investments LLC and its affiliates. The Plan became
effective on April 30, 2010.
Erickson own 20 continuing care retirement communities in 11
states. Among Erickson's 20 communities, eight are completed, 11
are open although in construction, and one is in development.
They have 23,000 residents in total.
Bankruptcy Creditors' Service, Inc., publishes Erickson Retirement
Bankruptcy News. The newsletter tracks the Chapter 11 proceedings
of Erickson Retirement Communities LLC and Lincolnshire Campus.
(http://bankrupt.com/newsstand/or 215/945-7000)
MARTIN CADILLAC: GM, Valley National Object to Cash Collateral Use
------------------------------------------------------------------
General Motors, LLC, and Valley National Bank have objected to
Martin Cadillac, L.L.C.'s request to use cash collateral securing
their obligation to their prepetition lenders.
Last month, the Debtor sought and obtained interim authorization
from the U.S. Bankruptcy Court for the District of New Jersey to
use the cash collateral from June 25, 2010. Paul S. Hollander,
Esq., at Okin, Hollander & Deluca, L.L.P., the attorney for the
Debtor, explained that the Debtor needs the money to fund its
Chapter 11 case, pay suppliers and other parties. In exchange for
using the cash collateral, the Debtor will grant the cash
collateral claimants (a) continuing liens and security interests
in the pre-petition collateral, if any, of each cash collateral
claimant, on the same terms and conditions as may have existed
pre-petition; and (b) replacement liens and security interests in
and against post-petition property acquired by the Debtor in
replacement of the respective pre-petition collateral, if any, of
each of the cash collateral claimant and the proceeds thereof.
These entities appear to assert an interest in the Debtor's cash
collateral:
a. General Motors Acceptance Corporation, aka GMAC, Inc., nka
Ally Financial, Inc.;
b. Valley National Bank, as successor in interest to The Park
Avenue Bank;
c. Farrell Family Ventures, LLC;
d. The State of New Jersey, Division of Taxation; and
e. Mariner's.
A final hearing was set for July 6, 2010, at 11:00 a.m. on the
Debtor's request to use cash collateral.
GM, the Debtor's counterparty to several agreements that are
critical to the Debtor's continued operations, filed an objection
to the Debtor's request for cash collateral use. GM doesn't agree
with the Debtor's characterization of the agreements or assertions
regarding the scope or nature of its rights pursuant to the
agreements. GM has informed the Debtor that any open account
credits are being held by GM pursuant to an administrative freeze.
The monies will be held pending GM's evaluation as to its set off
and recoupment rights vis-a-vis the Debtor and any interested
parties, and GM's determination regarding how those rights may
apply here. GM needs an opportunity to investigate the Debtor's
accounts, finances, incentives, and related matters.
Valley also objected to the Debtor's request to use cash
collateral. The Debtor was permitted to use cash collateral of,
among others, Valley on an emergent basis subject to an annexed
budget pending an interim hearing on the motion scheduled for
July 6, 2010.
Valley says it hasn't been provided with a proposed form of
interim order authorizing further use of cash collateral or an
updated budget that provides a breakdown of weekly income and
expenditures.
Valley objects to the Debtor's proposed interim order to the
extent it does not provide Valley with adequate protection in the
form of replacement liens and security interests in post-petition
property of the Debtor to the extent of Valley's interest in the
Debtor's pre-petition assets and a superpriority administrative
claim to the extent replacement liens do not adequately protect
Valley's interest in the cash collateral. Valley further objects
to the Proposed Interim Order to the extent the proposed interim
budget provides for payments outside of the ordinary course of
business or payments to insiders.
GM is represented by Bingham McCutchen LLP. Valley is represented
by Lowenstein Sandler PC.
Englewood Cliffs, New Jersey-based Martin Cadillac, LLC, filed for
Chapter 11 bankruptcy protection on June 25, 2010 (Bankr. D.N.J.
Case No. 10-29520). Gregory S. Kinoian, Esq., and Paul S.
Hollander, Esq., at Okin, Hollander & DeLuca, LLP, assist the
Company in its restructuring effort. The Company estimated its
assets and debts at $10,000,001 to $50,000,000.
MARTIN CADILLAC: Section 341(a) Meeting Scheduled for July 28
-------------------------------------------------------------
The U.S. Trustee for Region 3 will convene a meeting of Martin
Cadillac, LLC's creditors on July 28, 2010, at 11:00 a.m. The
meeting will be held at Office of the US Trustee, Raymond
Boulevard, One Newark Center, Suite 1401, Newark, NJ 07102-5504.
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.
Englewood Cliffs, New Jersey-based Martin Cadillac, LLC, filed for
Chapter 11 bankruptcy protection on June 25, 2010 (Bankr. D.N.J.
Case No. 10-29520). Gregory S. Kinoian, Esq., and Paul S.
Hollander, Esq., at Okin, Hollander & DeLuca, LLP, assist the
Company in its restructuring effort. The Company estimated its
assets and debts at $10,000,001 to $50,000,000.
MARTIN CADILLAC: Organizational Meeting to Form Panel on July 8
---------------------------------------------------------------
Roberta A. DeAngelis, Acting United States Trustee for Region 3,
will hold an organizational meeting on July 8, 2010, at 10:00 a.m.
in the bankruptcy case of Martin Cadillac, L.L.C. The meeting
will be held at the United States Trustee's Office, One Newark
Center, 21st Floor, Room 2106, Newark, NJ 07102.
The sole purpose of the meeting will be to form a committee or
committees of unsecured creditors in the Debtors' cases.
The organizational meeting is not the meeting of creditors
pursuant to Section 341 of the Bankruptcy Code. A representative
of the Debtor, however, may attend the Organizational Meeting, and
provide background information regarding the bankruptcy cases.
To increase participation in the Chapter 11 proceeding, Section
1102 of the Bankruptcy Code requires that the United States
Trustee appoint a committee of unsecured creditors as soon as
practicable. The Committee ordinarily consists of the persons,
willing to serve, that hold the seven largest unsecured claims
against the debtor of the kinds represented on the committee.
Section 1103 of the Bankruptcy Code provides that the Committee
may consult with the debtor, investigate the debtor and its
business operations and participate in the formulation of a plan
of reorganization. The Committee may also perform other services
as are in the interests of the unsecured creditors whom it
represents.
Englewood Cliffs, New Jersey-based Martin Cadillac, LLC, filed for
Chapter 11 bankruptcy protection on June 25, 2010 (Bankr. D.N.J.
Case No. 10-29520). Gregory S. Kinoian, Esq., and Paul S.
Hollander, Esq., at Okin, Hollander & DeLuca, LLP, the attorney
for the Debtor, assist the Company in its restructuring effort.
The Company estimated its assets and debts at $10,000,001 to
$50,000,000.
MAURICE KOESTERER: Case Summary & 20 Largest Unsecured Creditors
----------------------------------------------------------------
Joint Debtors: Maurice Robert Koesterer, Jr.
dba Koesterer Construction Co.
Splash-N-Dash Car Wash, Ltd.
Koesterer & Polacek Construction Co.
Nancy Ann Koesterer
307 Parkwood Drive
Waterloo, IL 62298
Bankruptcy Case No.: 10-31749
Chapter 11 Petition Date: July 1, 2010
Court: U.S. Bankruptcy Court
Southern District of Illinois (East St Louis)
Judge: Laura K. Grandy
Debtor's Counsel: Donald M. Samson, Esq.
Attorney
226 W Main Street, Suite 102
Belleville, IL 62220
Tel: (618) 235-2226
E-mail: dnldsamson@yahoo.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
A copy of the Debtors' list of 20 largest unsecured
creditors filed together with the petition is available for
free at http://bankrupt.com/misc/ilsb10-31749.pdf
The petition was signed by the Joint Debtors.
MEDICAL STAFFING: Files Voluntary Petition Under Chapter 11
-----------------------------------------------------------
Medical Staffing Network Holdings, Inc., has entered into an Asset
Purchase Agreement to sell substantially all of its assets to MSN
AcquisitionCo, LLC, an entity organized and to be owned by the
Company's first lien secured lenders. In order to facilitate the
sale process, the Company has filed a voluntary petition for
relief under Chapter 11 of the U.S. Bankruptcy Code. The Company
expects that its operations will continue uninterrupted during the
bankruptcy proceeding. The Chapter 11 filing was made on July 2,
2010, in the United States Bankruptcy Court for the Southern
District of Florida in West Palm Beach, Florida.
The filing is not expected to impact the Company's employees or
clients. As part of its initial filing, the Company has filed
motions seeking assurances from the Court that its employees will
continue to receive their usual pay and benefits on an
uninterrupted basis and that the escrow arrangement that the
Company previously established for the benefit of its VMS clients
and subcontractors will continue uninterrupted following the
bankruptcy filing. Additionally, to pay the costs of the
restructuring process and to assure the Company's liquidity during
the restructuring process, the Company has secured a commitment
from its lenders for a $15 million debtor-in-possession revolving
credit facility and has filed motions seeking the Court's approval
of the debtor-in-possession financing.
Robert Adamson, the Company's Chairman and Chief Executive
Officer, stated, "The filing of our petition under Chapter 11 is
the next step in our efforts to complete the restructuring of our
debt and capital in accordance with the terms of the Restructuring
Support Agreement that we entered into with our senior secured
lenders on June 9, 2010. We believe that the filing of our
Chapter 11 petition and the signing of the Asset Purchase
Agreement move us one step closer to emerging from the
restructuring process with a capital structure that will allow us
to successfully operate our business in the future."
Under the Asset Purchase Agreement, MSN AcquisitionCo, LLC, will
purchase substantially all of the Company's assets and assume
certain of the Company's obligations associated with the purchased
assets, including the debtor-in-possession financing described
above, through a Court supervised auction and sale under Section
363 of the Bankruptcy Code. The purchase price is $84,122,982.40,
which will be paid by the lenders credit bidding the amount of the
first lien debt due to them. The proposed sale is also subject to
higher and better bids, as approved by the Bankruptcy Court, and
to the satisfaction of the closing conditions set forth in the
Asset Purchase Agreement. The Company anticipates that the sale
will close before August 31, 2010.
The Company intends to engage in a robust bidding process with any
and all interested parties. Those interested in submitting bids
should contact Leon Szlezinger, Managing Director of Jefferies &
Co., Inc., 520 Madison Avenue, 7th Floor, New York, NY (212-323-
3918) as soon as possible, as competing bids are expected to be
due by August 18, 2010.
About Medical Staffing
Boca Raton, Fla.-based Medical Staffing Network Holdings, Inc.
(OTC QX: MSNW) is one of of the largest diversified healthcare
staffing companies in the United States. The Company provides per
diem nurse staffing services and travel, allied health and vendor
managed services.
The Company's balance sheet as of March 28, 2010, showed
$87.7 million in assets and $140.8 million of debts, for a
stockholders' deficit of $53.1 million.
MEDICAL STAFFING: Voluntary Chapter 11 Case Summary
---------------------------------------------------
Debtor: Medical Staffing Network Holdings, Inc.
901 Yamato Road, Suite 110
Boca Raton, FL 33431
Bankruptcy Case No.: 10-29101
About the Company: The Debtor is a provider of temporary
(predominantly healthcare) staffing services
including per diem, short term contracts and
travel, in the United States. Warburg Pincus
Private equity VIII, L.P., owns a 45.4% stake
in the Company.
Chapter 11 Petition Date: July 2, 2010
Court: U.S. Bankruptcy Court
Southern District of Florida (West Palm Beach)
Judge: Erik P. Kimball
Debtor's Counsel: Paul Steven Singerman, Esq.
200 S Biscayne Boulevard #1000
Miami, FL 33131
Tel: (305) 755-9500
E-mail: singerman@bergersingerman.com
Debtor's Special
Corporate &
Transactional
Counsel: Akerman Senterfitt
Debtor's
Corporate
Restructuring
Advisor: Loughlin Meghji + Company
Debtor's
Accounting and
Tax Advisor: Ernst & Young LLP
Debtor's
Investment
Banker: Jefferies & Company, Inc.
Debtor's Claims
& Notice Agent: The Garden City Group Inc.
Estimated Assets: $100,000,001 to $500,000,000
Estimated Debts: $100,000,001 to $500,000,000
The list of unsecured creditor filed together with its petition
does not contain any entry.
The petition was signed by Mohsin Y. Meghji, chief restructuring
officer.
Debtor-affiliates filing separate Chapter 11 petitions:
Entity Case No.
------ --------
Medical Staffing Network, Inc. 10-29102
InteliStaf Healthcare, Inc. 10-29103
Medical Staffing Network of Illinois, LLC 10-29104
Medical Staffing Network Assets, LLC 10-29105
InteliStaf Group, Inc. 10-29106
InteliStaf Partners No. 1, LLC 10-29107
Medical Staffing Holdings, LLC 10-29108
MSN-Illinois Holdings, Inc. 10-29109
InteliStaf Partners No. 2, LLC 10-29110
InteliStaf Healthcare Management, L.P. 10-29111
InteliStaf Holdings, Inc. 10-29112
MESA AIR: Settles UAL Claims in UAL Proceeding
----------------------------------------------
United Air Lines, Inc., filed claims against Mesa Air Group, Inc.,
in the United States District Court for the Northern District of
Illinois in the complaint captioned "United Air Lines, Inc. v.
Mesa Air Group, Inc.," Case No. 1:09-CV-07352, seeking
declaratory relief or, in the alternative, contract reformation.
Mesa and United desire to compromise and settle only the claims
between the parties in the Federal Court Proceeding.
The Debtors ask the Court to approve the settlement between Mesa
and United, the salient terms of which include:
(a) Mesa waives and releases (1) any rights it had or has to
deliver to United any Replacement RJ-70s that are not
already in United Express service and (2) any claims for
damages or other relief it has or may have had for related
damages. The waiver and release includes any rights to
deliver or alleged damages relating to the Replacement
RJ-70s referenced in certain letters from Mike Lotz to
Cynthia C. Szadokierski, dated October 15 and November 3,
2009.
(b) The Settlement will have no effect on any claims between
the parties other than those in the Federal Court
Proceeding.
(c) United agrees that the claims in the Federal Court
Proceeding do not constitute a default under the Amended
and Restated United Express Agreement, as amended, and the
resolution in the Settlement cures any default that might
have resulted from the actions that gave rise to the
Proceeding.
The claims in the Federal Court Proceeding that are
resolved in the Settlement will have no effect on Mesa's
right to assume the United Express Agreement pursuant to
Section 365 of the Bankruptcy Code, in the Chapter 11
cases pending in the U.S. Bankruptcy Court for the
Southern District of New York.
(d) The parties agree to execute and file with the District
Court a stipulation to dismiss with prejudice the Federal
Court Proceeding.
About Mesa Air Group
Mesa currently operates 130 aircraft with approximately 700 daily
system departures to 127 cities, 41 states, Canada, and Mexico.
Mesa operates as Delta Connection, US Airways Express and United
Express under contractual agreements with Delta Air Lines, US
Airways and United Airlines, respectively, and independently as
Mesa Airlines and go! Mokulele. This operation links Honolulu to
the neighbor island airports of Hilo, Kahului, Kona and Lihue. The
Company, founded by Larry and Janie Risley in New Mexico in 1982,
has approximately 3,500 employees.
Mesa Air Group Inc. and its units filed their Chapter 11 petitions
Jan. 5 in New York (Bankr. S.D.N.Y. Case No. 10-10018), listing
assets of $976 million against debt totaling $869 million as of
Sept. 30, 2009.
Richard M. Pachulski, Esq., and Laura Davis Jones, Esq., at
Pachulski Stang Ziehl & Jones LLP, serve as local counsel.
Imperial Capital LLC is the investment banker. Epiq Bankruptcy
Solutions is claims and notice agent.
Bankruptcy Creditors' Service, Inc., publishes Mesa Air Bankruptcy
News. The newsletter tracks the Chapter 11 proceedings undertaken
by Mesa Air Group Inc. and its units.
(http://bankrupt.com/newsstand/or 215/945-7000).
MESA AIR: To Cut Jobs and Relocate Headquarters
-----------------------------------------------
Mesa Air Group, Inc. Chairman and Chief Executive Jonathan
Ornstein said the airline will cut down jobs to roughly 2,500 and
will transfer its headquarters across the street from its current
location to save on rent, The Arizona Republic reports.
Mr. Ornstein said that Mesa's case is a "technical bankruptcy"
because it filed "simply to reject aircraft leases as bankruptcy
laws allow." Originally operating 178 aircraft, Mesa plans to
keep fewer than 80 aircraft to match its fleet with the current
demand.
Mesa has not sought financing since entering Chapter 11 because
it is generating cash from its operations, Mr. Ornstein added.
To recall, Mesa operates as Delta Connection, US Airways Express
and United Express under contractual agreements with Delta Air
Lines, US Airways and United Airlines, respectively, and
independently as Mesa Airlines and go! Mokulele.
As previously reported, on March 28, 2008, Delta terminated the
Delta Connection Agreement with respect to certain aircraft. In
May 2010, Mesa obtained approval and authority from the U.S.
Bankruptcy Court for the Southern District of New York to enter
into a temporary agreement with Delta on substantially the same
terms as the Delta Connection Agreement.
The Temporary Delta Agreement applies only to certain aircraft
and will expire on August 31, 2010, unless earlier terminated by
the Debtors.
According to Arizona Republic, US Airways holds "considerable
sway" in Mesa's bankruptcy case because it is the Debtor's
largest remaining client. The report notes that Mesa is trying
to negotiate with US Airways and its aircraft lessors to extend
the US Airways contract beyond 2012.
Because of economic changes, major airlines want to pay regional
airlines less to operate commuter flights, if they do at all,
Arizona Republic notes. Major airlines "have the upper hand and
know it." In Mesa's case, that "portends a hard sell" by US
Airways as Mesa seeks to extend the contract, its preferred route
out of bankruptcy, Arizona Republic says.
The report notes that Mesa and US Airways' relationship dates
back 20 years with Mesa having made certain financial sacrifices
during US Airways' 2004 bankruptcy, among others.
"USAir has been our friend, and we've been partners with them for
a long time and helped them . . . [b]ut don't think for a second
that they're not trying to figure out every ounce of leverage
they have to use against us," Arizona Republic quoted Mr.
Ornstein as saying.
US Airways executives, meanwhile, kept mum when asked about the
negotiations. However, US Airway President Scott Kirby said in
the airline's employee newsletter in May that it "either needs to
replace the planes at Mesa with another carrier when the contract
is up or extend the deal 'for a long period of time.'" Mr. Kirby
also said that he expected the matter to be resolved this summer,
Arizona Republic reports.
Reacting to some industry watchers' suggestion that Mesa cannot
survive bankruptcy without an extension to the US Airways
contract, Mr. Ornstein asserted that Mesa "can emerge from
bankruptcy this fall by simply assuming the US Airways contract
as it is."
Mr. Ornstein added that the guaranteed revenue until 2012 and
Mesa's growing cash balance would "buy it time to renegotiate the
US Airways deal or figure out other options" for the 86-seat
planes, which he said are "still in demand," Arizona Republic
reports.
While Mesa does not need cash to exit from bankruptcy, an outside
investment is not out of the question. Arizona Republic notes
that the Official Committee of Unsecured Creditors of Mesa has
approached potential investors but declines to discuss specifics.
However, most of Mesa's alternatives lead back to US Airways,
according to Arizona Republic.
"I think there would be more (outside) interest in a Mesa that
has a long-term agreement with US Airways," the report quoted
Lorenzo Marinuzzi, a partner at Morrison and Foerster, which
represents Mesa's Creditors' Committee, as saying.
About Mesa Air Group
Mesa currently operates 130 aircraft with approximately 700 daily
system departures to 127 cities, 41 states, Canada, and Mexico.
Mesa operates as Delta Connection, US Airways Express and United
Express under contractual agreements with Delta Air Lines, US
Airways and United Airlines, respectively, and independently as
Mesa Airlines and go! Mokulele. This operation links Honolulu to
the neighbor island airports of Hilo, Kahului, Kona and Lihue. The
Company, founded by Larry and Janie Risley in New Mexico in 1982,
has approximately 3,500 employees.
Mesa Air Group Inc. and its units filed their Chapter 11 petitions
Jan. 5 in New York (Bankr. S.D.N.Y. Case No. 10-10018), listing
assets of $976 million against debt totaling $869 million as of
Sept. 30, 2009.
Richard M. Pachulski, Esq., and Laura Davis Jones, Esq., at
Pachulski Stang Ziehl & Jones LLP, serve as local counsel.
Imperial Capital LLC is the investment banker. Epiq Bankruptcy
Solutions is claims and notice agent.
Bankruptcy Creditors' Service, Inc., publishes Mesa Air Bankruptcy
News. The newsletter tracks the Chapter 11 proceedings undertaken
by Mesa Air Group Inc. and its units.
(http://bankrupt.com/newsstand/or 215/945-7000).
MICHAEL PETERS: Case Summary & 9 Largest Unsecured Creditors
------------------------------------------------------------
Joint Debtors: Michael Wade Peters
Tammy Peters
3512 Hester Town Road
Monroe, GA 30655
Tel: (770) 267-8114
Bankruptcy Case No.: 10-31167
Chapter 11 Petition Date: July 2, 2010
Court: United States Bankruptcy Court
Middle District of Georgia (Athens)
Debtor's Counsel: Adam Lindsay Hebbard, Esq.
Coulter & Associates
1361 Jennings Mill Road
Building 300, Suite 314
Bogart, GA 30622
Tel: (706) 546-9755
Fax: (706) 546-1796
E-mail: ahebbard@coulter-law.com
Estimated Assets: $500,001 to $1,000,000
Estimated Debts: $1,000,001 to $10,000,000
A list of the Company's 9 largest unsecured creditors
filed together with the petition is available for free
at http://bankrupt.com/misc/gamb10-31167.pdf
The petition was signed by Michael Wade Peters.
MIRIAM SANCHEZ: Case Summary & 20 Largest Unsecured Creditors
-------------------------------------------------------------
Debtor: Miriam Sanchez
4103 Layman Ave
Pico Rivera, CA 90660
Bankruptcy Case No.: 10-37402
Chapter 11 Petition Date: July 2, 2010
Court: United States Bankruptcy Court
Central District Of California (Los Angeles)
Judge: Alan M. Ahart
Debtor's Counsel: Jerome S. Cohen, Esq.
3731 Wilshire Blvd Ste 514
Los Angeles, CA 90010
Tel: (213) 388-8188
Fax: (213) 388-6188
E-mail: jsc@jscbklaw.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
A list of the Company's 20 largest unsecured creditors
filed together with the petition is available for free
at http://bankrupt.com/misc/cacb10-37402.pdf
The petition was signed by Miriam Sanchez.
MPG OFFICE: Shareholders Elect Seven Directors
----------------------------------------------
MPG Office Trust Inc. nominated seven individuals to serve as
directors until the 2011 Annual Meeting of Stockholders and until
their respective successors are duly elected and qualify. Each of
the nominees for director was elected by a plurality of votes.
* Christine N. Garvey
* Michael J. Gillfillan
* Nelson C. Rising
* Joseph P. Sullivan
* George A. Vandeman
* Paul M. Watson
* David L. Weinstein
About Maguire Properties, Inc.
Maguire Properties, Inc. (NYSE: MPG) --
http://www.maguireproperties.com/-- is the largest owner and
operator of Class A office properties in the Los Angeles central
business district and is primarily focused on owning and operating
high-quality office properties in the Southern California market.
Maguire Properties, Inc. is a full-service real estate company
with substantial in-house expertise and resources in property
management, marketing, leasing, acquisitions, development and
financing.
* * *
The Company's balance sheet at March 31, 2010, showed $3.5 billion
in total assets and $4.3 billion in total liabilities, for a total
stockholders' deficit of $830.5 million.
NATIONAL ENVELOPE: Balks at Cenveo's Demand for Financial Info
--------------------------------------------------------------
Bill Rochelle at Bloomberg News reports that National Envelope
Corp. said in a bankruptcy court filing that Cenveo Corp., which
calls itself a "major player in the envelope business," isn't a
party-in-interest and has no right to demand the disclosure of the
most intimate financial details about privately held National
Envelope. NEC said it would be "highly inappropriate" for Cenveo,
its "largest competitor," to have access to detailed information
about customers and operations. After selection of the stalking
horse and the court approval of auction procedures, NEC says
Cenveo will have access to information like every other potential
bidder.
According to the report, Cenveo has claimed that it had been
"systematically excluded" from the process of finding a buyer for
NEC. Cenveo says it's prepared to pay $140 million, which it
believes is more than is being offered by Gores Group LLC and
enough to pay off first-lien debt.
About National Envelope
Uniondale, New York-based National Envelope Corporation --
http://www.nationalenvelope.com/-- manufactures envelopes. It
has 14 manufacturing facilities and 2 distribution centers and
approximately 3,500 employees in the U.S. and Canada.
NEC Holdings Corp., together with affiliates, including National
Envelope Inc., filed for Chapter 11 on June 10, 2010 (Bankr. D.
Del. Lead Case No. 10-11890). Kara Hammond Coyle, Esq., at Young
Conaway Stargatt & Taylor LLP, serves as bankruptcy counsel.
David S. Heller, Esq., at Josef S. Athanas, Esq., and Stephen R.
Tetro II, Esq., at Latham & Watkins LLP, serve as co-counsel. The
Garden City Group is the Debtors' claims and notice agent.
NEC Holdings' petition says assets and debts range from
$100,000,001 to $500,000,000.
NELSON-GORDON: Case Summary & 20 Largest Unsecured Creditors
------------------------------------------------------------
Debtor: Nelson-Gordon Enterprises, Inc.
aka The Dive Shop
439 Federal Road
Brookfield, CT 06804
Tel: (860) 354-8258
Bankruptcy Case No.: 10-51580
Chapter 11 Petition Date: July 1, 2010
Court: United States Bankruptcy Court
District of Connecticut (Bridgeport)
Judge: Alan H.W. Shiff
Debtor's Counsel: Joseph J. D'Agostino, Jr., Esq.
1062 Barnes Road, Suite 304
Wallingford, CT 06492
Tel: (203) 265-5222
Fax: (203) 265-5236
E-mail: joseph@lawjjd.com
Scheduled Assets: $78,500
Scheduled Debts: $3,777,897
A list of the Company's 20 largest unsecured creditors
filed together with the petition is available for free
at http://bankrupt.com/misc/ctb10-51580.pdf
The petition was signed by Gary Gordon, officer.
NORD RESOURCES: Gets 30-Day Extension to Leave TSX
--------------------------------------------------
Nord Resources Corporation said that the Toronto Stock Exchange
has granted the Company a 30-day extension for continued trading
on the TSX. The extension is to provide the company with
additional time to seek a listing on another Canadian stock
exchange to provide for orderly trading of the Company's common
stock.
Accordingly, Nord's shares will now be delisted from the TSX at
the close of the market on July 30, 2010. The company's shares
will continue to trade in the United States on the OTC Bulletin
Board.
The decision to seek a listing on another Canadian stock exchange
follows the previously announced receipt of notice from the TSX's
Continued Listings Committee that Nord's shares will be delisted
from trading on the TSX effective at the close of the market on
July 2, 2010.
As previously announced, Nord received an exemption from certain
shareholder approval requirements under the rules of the TSX in
connection with Nord's $12 million private placement completed in
November 2009, on the basis of financial hardship. Reliance on
this exemption automatically triggered a TSX delisting review to
confirm that Nord continues to meet the TSX listing requirements.
About Nord Resources
Based in Tuczon, Arizona, Nord Resources Corporation
(TSX:NRD/OTCBB:NRDS.OB) -- http://www.nordresources.com/-- is a
copper mining company whose primary asset is the Johnson Camp
Mine, located approximately 65 miles east of Tucson, Arizona.
Nord commenced mining new ore on February 1, 2009.
* * *
According to the Troubled Company Reporter on May 10, 2010, Nord
Resources Corporation is facing a Thursday deadline to make
payments under a copper hedge agreement and a credit facility with
Nedbank Capital Limited.
In March 2009, Nord agreed with Nedbank to amend and restate its
credit agreement to provide for, among other things, the deferral
of certain principal and interest payments until December 31,
2012, and March 31, 2013. While Nord made the scheduled principal
and interest payments that were due on September 30 and
December 31, 2009, in the approximate amounts of $2.3 million
each, the Company was unable to make the scheduled principal and
interest payment due on March 31, 2010, in the approximate amount
of $2.2 million.
Nord and Nedbank entered into an unconditional forbearance and
extension agreement dated March 30, 2010, that allowed for a
forbearance period of 21 days to negotiate an amendment to the
credit agreement as it pertains to the March 31, 2010 payment and
other terms therein. That agreement was then extended to May 13,
2010.
NORTH GENERAL HOSPITAL: Files for Chapter 11 to Close Down
----------------------------------------------------------
North General Hospital filed for Chapter 11 on July 2 in Manhattan
(Bankr. S.D.N.Y. Case No. 10-13553).
According to Bill Rochelle at Bloomberg News, North General,
located at Madison Avenue and 121st Street in Manhattan's Central
Harlem, filed under Chapter 11 to implement a program to close the
200-bed not-for-profit institution by July 15.
The Bloomberg report relates that the hospital has been
chronically undercapitalized since its founding in the 1970s. The
working capital deficiency at the time of bankruptcy was $194
million. Financial difficulties resulted in part from lower
reimbursement rates and declining admissions.
The hospital, Bloomberg relates, said it would halt admissions
starting July 6. The last of the patients will be discharged and
the emergency department will close by July 15.
The petition listed assets of $67 million and debt totaling
$293 million. Liabilities include $213 million in secured debt
mostly owing to the Dormitory Authority of the State of New
York.
The law firm of Windels Marx Lane & Mittendorf, LLP, serves a
bankruptcy counsel. Garfunkel Wild, P.C. serves as special health
care counsel. Alvarez & Marsal is restructuring consultant.
A copy of the list of 50 largest unsecured creditors filed
together with the petition is available for free at
http://bankrupt.com/misc/nysb10-13553.pdf
North General Hospital is the second acute-care hospital to fold
in New York City in less than two months. St. Vincent's Hospital,
the last Catholic hospital in the city, shut its doors in April
and filed for bankruptcy.
NORTH GENERAL HOSPITAL: Case Summary & 50 Largest Unsec. Creditors
------------------------------------------------------------------
Debtor: North General Hospital
1879 Madison Avenue
New York, NY 10035
Bankruptcy Case No.: 10-13553
Chapter 11 Petition Date: July 2, 2010
Court: U.S. Bankruptcy Court
Southern District of New York (Manhattan)
Judge: Shelley C. Chapman
Debtor's Counsel: Charles E. Simpson, Esq.
Windels, Marx, Lane & Mittendorf, LLP
156 West 56th Street
New York, NY 10019
Tel: (212) 237-1000
Fax: (212) 237-1215
E-mail: csimpson@windelsmarx.com
Debtor's
Healthcare
Counsel: Garfunkel Wild, P.C.
Debtor's
Restructuring
Consultant: Alvarez & Marsal
Scheduled Assets: $67 million
Scheduled Debts: $293 million
The petition was signed by Dr. Samuel J. Daniel, M.D., president
and CEO.
A copy of the list of 50 largest unsecured creditors filed
together with the petition is available for free at
http://bankrupt.com/misc/nysb10-13553.pdf
OAKVIEW TIMBER: Case Summary & 12 Largest Unsecured Creditors
-------------------------------------------------------------
Debtor: Oakview Timber Company Plantation, LLC
Rt. 2 Box 370
Newton, GA 39870
Bankruptcy Case No.: 10-79350
Chapter 11 Petition Date: July 2, 2010
Court: U.S. Bankruptcy Court
Northern District of Georgia (Atlanta)
Debtor's Counsel: J. Robert Williamson, Esq.
Scroggins and Williamson
1500 Candler Building
127 Peachtree Street, N.E.
Atlanta, GA 30303
Tel: (404) 893-3880
E-mail: rwilliamson@swlawfirm.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
A copy of the Debtor's list of 12 largest unsecured
creditors filed together with the petition is available for
free at http://bankrupt.com/misc/ganb10-79350.pdf
The petition was signed by Gordon R. Teel, operating manager.
PACIFIC ENERGY: Wants September 9 Exclusivity Extension
-------------------------------------------------------
Bill Rochelle at Bloomberg News reports that Pacific Energy
Resources Ltd. is pursuing a last extension of its exclusive right
to propose a Chapter 11 plan. At a July 28 hearing, Pacific
Energy will ask the judge to extend its exclusivity period to
Sept. 9, the maximum 18 months that bankruptcy law allows.
The report relates that Pacific Energy has sold the most of its
assets in Alaska and offshore California. Pacific says it
prepared a plan that's not being filed as yet at the request of
the Official Committee of Unsecured Creditors. The Committee has
previously won approval to file so-called preference suits. The
Committee estimated there could be $30 million in claims to
recover preferences.
About Pacific Energy
Headquartered in Long Beach, California, Pacific Energy Resources
Ltd. -- http://www.pacenergy.com/-- engaged in the acquisition
and development of oil and gas properties, primarily in the United
States.
The Company and seven of its affiliates filed for
Chapter 11 protection on March 8, 2009 (Bankr. D. Del. Lead Case
No. 09-10785). Attorneys at Pachulski Stang Ziehl & Jones LLP,
represent the Debtors as counsel. The Debtors proposed Rutan &
Tucker LLP as special corporation and litigation counsel;
Schully, Roberts, Slattery & Marino, PLC, as special oil and gas
and transactional counsel; Devlin Jensen as special Canadian
counsel; Scott W. Winn, at Zolfo Cooper Management, LLC, as chief
restructuring officer; Lazard Freres & Co. LLC as investment
banker; and Albrecht & Associates, Inc., as agent for the Debtors
in the sale of their oil and gas properties. Omni Management
Group, LLC, is the claims, balloting, notice and administrative
agent for the Debtors. When the Debtors filed for protection from
their creditors, they listed between $100 million and
$500 million each in assets and debts.
PALM INC: Completes Merger Into Hewlett-Packard Unit
----------------------------------------------------
Palm Inc. completed the merger of District Acquisition
Corporation, a wholly-owned subsidiary of Hewlett-Packard Company,
under the Agreement and Plan of Merger dated April 28, 2010. As a
result of the Merger, the Company became a wholly-owned subsidiary
of HP.
Under the Agreement, Merger Sub merged with and into the Company,
and the Company became a wholly-owned subsidiary of HP. In
connection therewith, each share of the Company's capital stock
issued and outstanding immediately prior to the effective time of
the Merger was canceled and converted into the right to receive:
i) $5.70, with respect to each such share of Company Common
Stock,
ii) $1,010.00, with respect to each such share of the Company's
Series B Convertible Preferred Stock, and
iii) $1,753.85, with respect to each such share of the Company's
Series C Convertible Preferred Stock. No consideration is
payable, however, with respect to any such shares held by
the Company as treasury stock or by HP.
HP used cash on hand and short term borrowing to fund the
acquisition of the Company and the payment of the merger
consideration.
About Palm Inc.
Sunnyvale, California-based Palm, Inc. (NASDAQ: PALM) creates
intuitive and powerful mobile experiences that enable consumers
and businesses to connect to their information in more useful and
usable ways. Palm products are sold through select Internet,
retail, reseller and wireless operator channels, and at the Palm
online store at http://www.palm.com/store
At February 28, 2010, Palm had total assets of $1,007,237,000
against total current liabilities of $601,133,000; long-term debt
of $387,000,000; non-current deferred revenues of $19,001,000;
non-current tax liabilities of $6,286,000; Series B redeemable
convertible preferred stock of $272,961,000; and Series C
redeemable convertible preferred stock of $18,782,000; resulting
in stockholders' deficit of $297,926,000. At May 31, 2009,
stockholders' deficit was $406,568,000.
* * *
As reported by the Troubled Company Reporter on March 5, 2010,
Standard & Poor's Ratings Services affirmed its 'CCC+' corporate
credit rating and other ratings on Palm Inc. and revised the
ratings outlook to negative from positive. "The action reflects
the company's announcement that revenues in the February 2010
quarter and fiscal year ending May 2010 will be well below earlier
expectations," said Standard & Poor's credit analyst Bruce Hyman.
PARLUX FRAGRANCES: JM-CO Capital Holds Warrants to Buy Shares
-------------------------------------------------------------
JM-CO Capital Fund, LLC, disclosed that it may be deemed to
indirectly own warrants to buy shares of Parlux Fragrances Inc.
common stock. The warrants are held by the Carolina Marie Garcia
2006 Family Trust, the Jacqueline Marie Garcia 2006 Family Trust,
the Irrevocable Trust for Victor Garcia, and Carolina Marie
Garcia, as Co-Trustee of the trusts.
A full-text copy of JM-CO's disclosure is available at no charge
at http://ResearchArchives.com/t/s?65ed
About Parlux Fragrances
Parlux Fragrances, Inc. (NASDAQ:PARL) -- http://www.parlux.com/--
is a manufacturer and international distributor of prestige
products. It holds licenses for Paris Hilton, Jessica Simpson,
GUESS?, Nicole Miller, Josie Natori, Queen Latifah, Marc Ecko,
Rihanna, Kanye West, XOXO, Ocean Pacific (OP), Andy Roddick,
babyGund, and Fred Hayman Beverly Hills designer fragrances, as
well as Paris Hilton watches, cosmetics, sunglasses, handbags and
other small leather accessories.
As of Dec. 31, 2009, the Company has $112.3 million in total
assets and $17.5 million in total liabilities, resulting to
$109.4 million stockholders' equity.
Extension of Forbearance Period
As reported in the Troubled Company Reporter, the Company on
October 29, 2009, entered into a Second Amendment to Loan
Agreement and Amendment to Forbearance Agreement with Regions Bank
extending the forbearance period through February 15, 2010, and
calling for the Company to repay the remaining loan balance over
the course of the extension period. The Second Amendment requires
the Company to continue to comply with certain covenants with
Regions under the Loan Agreement.
As of December 31, 2009, the Company was not in compliance with
its fixed charge coverage and funded debt to EBITDA covenants
under the Loan Agreement, as amended. As of February 4, 2010, the
Company has $1.1 million in outstanding borrowings under the Loan
Agreement, which was scheduled for repayment on February 15, 2010.
The Company, in its third fiscal quarter report for the period
ended December 31, 2009 -- which report was filed on February 4,
2010 -- said it believes that funds from operations will be
sufficient to meet current operating and seasonal needs through
June 30, 2010. The Company said it continues to seek replacement
financing with the objective of having a new financing arrangement
in place in anticipation of next year's major production season.
PARLUX FRAGRANCES: CEO Exercises Option to Buy More Shares
----------------------------------------------------------
Frederick E. Purches, chairman and CEO of Parlux Fragrances, Inc.,
disclosed that on June 25 he exercised options to buy 15,000
Company shares at $0.82 a share. The transaction raised his stake
to 67,000 shares.
A full-text copy of JM-CO's disclosure is available at no charge
at http://ResearchArchives.com/t/s?65ed
About Parlux Fragrances
Parlux Fragrances, Inc. (NASDAQ:PARL) -- http://www.parlux.com/--
is a manufacturer and international distributor of prestige
products. It holds licenses for Paris Hilton, Jessica Simpson,
GUESS?, Nicole Miller, Josie Natori, Queen Latifah, Marc Ecko,
Rihanna, Kanye West, XOXO, Ocean Pacific (OP), Andy Roddick,
babyGund, and Fred Hayman Beverly Hills designer fragrances, as
well as Paris Hilton watches, cosmetics, sunglasses, handbags and
other small leather accessories.
As of Dec. 31, 2009, the Company has $112.3 million in total
assets and $17.5 million in total liabilities, resulting to
$109.4 million stockholders' equity.
Extension of Forbearance Period
As reported in the Troubled Company Reporter, the Company on
October 29, 2009, entered into a Second Amendment to Loan
Agreement and Amendment to Forbearance Agreement with Regions Bank
extending the forbearance period through February 15, 2010, and
calling for the Company to repay the remaining loan balance over
the course of the extension period. The Second Amendment requires
the Company to continue to comply with certain covenants with
Regions under the Loan Agreement.
As of December 31, 2009, the Company was not in compliance with
its fixed charge coverage and funded debt to EBITDA covenants
under the Loan Agreement, as amended. As of February 4, 2010, the
Company has $1.1 million in outstanding borrowings under the Loan
Agreement, which was scheduled for repayment on February 15, 2010.
The Company, in its third fiscal quarter report for the period
ended December 31, 2009 -- which report was filed on February 4,
2010 -- said it believes that funds from operations will be
sufficient to meet current operating and seasonal needs through
June 30, 2010. The Company said it continues to seek replacement
financing with the objective of having a new financing arrangement
in place in anticipation of next year's major production season.
PATTON PROPERTIES: Voluntary Chapter 11 Case Summary
----------------------------------------------------
Debtor: Patton Properties, LLP
2520 Wynnton Road
Columbus, GA 31906
Bankruptcy Case No.: 10-40842
Chapter 11 Petition Date: July 2, 2010
Court: United States Bankruptcy Court
Middle District of Georgia (Columbus)
Debtor's Counsel: Stephen G. Gunby, Esq.
P.O. Box 1846
Columbus, GA 31902
Tel: (706) 324-3448
Fax: (706) 327-3958
E-mail: sggunby@bellsouth.net
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
The Debtor did not file a list of its largest unsecured creditors
together with its petition.
The petition was signed by Martin Flournoy, partner.
PCS EDVENTURES: Files Form 10-K; M&K Raises Going Concern Doubt
---------------------------------------------------------------
PCS Edventures!.com filed its Form 10-K, reporting a net loss of
$1.8 million on $2.3 million of total revenue for the year ended
March 31, 2010, compared with a net loss of $1.9 million on
$2.6 million of total revenue for the year ended March 31, 2009.
The Company's balance sheet at March 31, 2010, showed $1.3 million
in total assets and $432,859 in total liabilities, for a
stockholder's equity of $950,711.
M&K CPAS PLLC expressed substantial doubt about the Company's
ability to continue as a going concern. The firm noted that the
Company has suffered reoccurring losses and negative cash flow
from operations after auditing the Company's financial results for
fiscal 2010 and 2009.
A full-text copy of the Company's Form 10-K is available for free
at http://ResearchArchives.com/t/s?65ee
About PCS Edventures!.com
Boise, Idaho-based PCS Edventures!.com, Inc. (OTC BB: PCSV) --
http://www.edventures.com/-- is engaged in the design,
development and delivery of educational learning labs bundled with
related technologies and programs to the K-12 market worldwide.
The PCS suite of products ranges from hands-on learning labs in
technology-rich topics in Science, Technology, Engineering and
Math (STEM) to services rich in imagination, innovation, and
creativity. PCS programs operate in over 6,000 sites in all 50
United States as well as in 17 countries internationally.
PEOPLE PROCESSING: Case Summary & 20 Largest Unsecured Creditors
----------------------------------------------------------------
Debtor: People Processing Information, Inc.
2126 Espey Court, Suite D
Crofton, MD 21114
Bankruptcy Case No.: 10-25096
Chapter 11 Petition Date: July 2, 2010
Court: U.S. Bankruptcy Court
District of Maryland (Baltimore)
Judge: Nancy V. Alquist
Debtor's Counsel: James Greenan, Esq.
McNamee, Hosea, et. al.
6411 Ivy Lane, Suite 200
Greenbelt, MD 20770
Tel: (301) 441-2420
E-mail: jgreenan@mhlawyers.com
Estimated Assets: $100,001 to $500,000
Estimated Debts: $1,000,001 to $10,000,000
A copy of the Debtor's list of 20 largest unsecured
creditors filed together with the petition is available for
free at http://bankrupt.com/misc/mdb10-25096.pdf
The petition was signed by Jacqueline Brown, president.
PERCY CROCKER: Voluntary Chapter 11 Case Summary
------------------------------------------------
Debtor: Percy Van Crocker
aka Percy Vandorn Crocker
6841 Beaver Creek Drive
Pointe Clear, AL 36564
Bankruptcy Case No.: 10-02982
Chapter 11 Petition Date: July 1, 2010
Court: U.S. Bankruptcy Court
Southern District of Alabama (Mobile)
Debtor's Counsel: Barry L. Thompson, Esq.
4317-A Midmost Drive
Mobile, AL 36609-5507
Tel: (251) 343-0800
E-mail: bthompson@silvervoit.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
According to the schedules, the Debtor says that assets total
$1,509,336 while debts total $1,707,784.
The Debtor did not file a list of creditors together with its
petition.
The petition was signed by the Debtor.
PEREZ RE: Case Summary & 19 Largest Unsecured Creditors
-------------------------------------------------------
Debtor: Perez Re Development, LLC
2310 Highland Drive
Las Vegas, NV 89102-4809
Bankruptcy Case No.: 10-22402
Chapter 11 Petition Date: July 1, 2010
Court: U.S. Bankruptcy Court
District of Nevada (Las Vegas)
Judge: Linda B. Riegle
Debtor's Counsel: James D. Greene, Esq.
Greene Infuso, LLP
3960 Howard Hughes Parkway, Suite 700
Las Vegas, NV 89169
Tel: (702) 697-6102
Fax: (702) 732-7110
E-mail: jgreene@greeneinfusolaw.com
Estimated Assets: $0 to $50,000
Estimated Debts: $10,000,001 to $50,000,000
A copy of the Debtor's list of 19 largest unsecured
creditors filed together with the petition is available for
free at http://bankrupt.com/misc/nvb10-22402.pdf
The petition was signed by John Bielinski, president of manager.
PETROS GROUP: Case Summary & 18 Largest Unsecured Creditors
-----------------------------------------------------------
Debtor: Petros Group, LLC
fdba Promax Recycling South
fdba Petros Group Recycling
1408 South Lake Pleasant Road
Apopka, FL 32703
Bankruptcy Case No.: 10-11733
Chapter 11 Petition Date: July 1, 2010
Court: United States Bankruptcy Court
Middle District of Florida (Orlando)
Debtor's Counsel: James H. Monroe, Esq.
P.O. Box 540163
Orlando, FL 32854
Tel: (407) 872-7447
Fax: (407) 246-0008
E-mail: jhm@jamesmonroepa.com
Scheduled Assets: $1,240,061
Scheduled Debts: $1,068,769
A list of the Company's 18 largest unsecured creditors
filed together with the petition is available for free
at http://bankrupt.com/misc/flmb10-11733.pdf
The petition was signed by Jose A. Rodriguez, III, chief executive
officer.
PLATINUM ENERGY: Significant Losses Prompt Going Concern Doubt
--------------------------------------------------------------
Platinum Energy Resources, Inc., filed on July 1, 2010, its annual
report on Form 10-K for the year ended December 31, 2009.
GBH CPAs, PC, in Houston, Texas, expressed substantial doubt about
the Company's ability to continue as a going concern. The
independent auditors noted that the Company has experienced
significant losses since inception and is currently in default of
its debt agreements. The Company's line of credit with Bank of
Texas matured on June 1, 2010. Through June 30, 2010, there have
been no notices of foreclosures on the Company's assets that
secure the debt, however the Company says it does not currently
have sufficient liquid assets to pay the balance of the Senior
Credit Facility.
The Company reported a net loss of $32.0 million on $35.7 million
of revenue for 2009, compared with a net loss of $80.8 million on
$53.2 million of revenue for the same period of 2009.
The Company recorded a non-cash ceiling test impairment of oil and
natural gas properties of $16.2 million ($5.5 million, net of tax)
and $130.1 million ($84.6 million, net of tax) during the years
ended December 31, 2009, and 2008, respectively, as a result of
declines in commodity prices and negative revisions in the
Company's proved reserve quantities.
The Company's balance sheet at December 31, 2009, showed
$64.4 million in assets, $36.1 million of liabilities, and
$28.2 million of stockholders' equity.
A full-text copy of the quarterly report is available for free at:
http://researcharchives.com/t/s?65e3
Houston, Tex.-based Platinum Energy Resources, Inc. --
http://www.platenergy.com/-- is an independent oil and gas
exploration and production company. The Company has approximately
37,000 acres under lease in relatively long-lived fields with
well-established production histories. The properties properties
are concentrated primarily in the Gulf Coast region in Texas, the
Permian Basin in Texas and New Mexico, and the Fort Worth Basin in
Texas.
PROSPECTOR CATERING: Voluntary Chapter 11 Case Summary
------------------------------------------------------
Debtor: Prospector Catering Co., LLC
P.O. Box 477
Black Eagle, MT 59414
Bankruptcy Case No.: 10-61622
Chapter 11 Petition Date: July 1, 2010
Court: U.S. Bankruptcy Court
District of Montana (Butte)
Debtor's Counsel: Steven M. Johnson
P.O. Box 1645
Great Falls, MT 59403
Tel: (406) 761-3000
E-mail: sjohnson@chjw.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
According to the schedules, the Debtor says that assets total
$1,400,095 while debts total $1,206,747.
The list of unsecured creditors filed together with its petition
does not contain any entry.
The petition was signed by Jack Barnes, managing member.
PROSPECTOR LAND: Voluntary Chapter 11 Case Summary
--------------------------------------------------
Debtor: Prospector Land Co., LLC
P.O. BOX 477
Black Eagle, MT 59414
Bankruptcy Case No.: 10-61620
Chapter 11 Petition Date: July 1, 2010
Court: U.S. Bankruptcy Court
District of Montana (Butte)
Judge: Ralph B. Kirscher
Debtor's Counsel: Steven M. Johnson, Esq.
P.O. Box 1645
Great Falls, MT 59403
Tel: (406) 761-3000
E-mail: sjohnson@chjw.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
According to the schedules, the Debtor says that assets total
$3,100,055 while debts total $1,230,163.
The list of unsecured creditors filed together with its petition
does not contain any entry.
The petition was signed by Jack Barnes, managing member.
RADIO ONE: Shareholders Ratify Ernst & Young as Public Accountant
-----------------------------------------------------------------
Radio One Inc. reported the results of various proposals voted
upon at its 2010 Annual Shareholders' Meeting held on June 29,
2010.
The appointment of Ernst & Young LLP as the independent registered
public accountant firm for Radio One was ratified for the year
ending December 31, 2010.
Terry L. Jones and Brian W. McNeill were elected as Class A
directors to serve until the 2011 annual meeting of shareholders
or until their successors are duly elected and qualified.
Catherine L. Hughes, Alfred C. Liggins, III, D. Geoffrey
Armstrong, Ronald E. Blaylock and B. Doyle Mitchell, Jr., were
elected as Class B directors to serve until the 2011 annual
meeting of shareholders or until their successors are duly elected
and qualified.
About Radio One
Radio One, Inc., operates as an urban-oriented multi-media company
in the United States. It principally engages in the radio
broadcasting operation that primarily targets African-American and
urban listeners. As of December 31, 2009, it owned and operated 53
radio stations located in 16 urban markets in the United States.
The company also has approximately 37% ownership interest in TV
One, LLC, an African-American targeted cable television network;
and a 53.5% ownership interest in Reach Media, Inc., which
operates the Tom Joyner Morning Show. Further, it owns Interactive
One, LLC, an online platform serving the African-American
community through social content, news, information, and
entertainment; and Community Connect, LLC, an online social
networking company. The company was founded in 1980 and is based
in Lanham, Maryland.
* * *
Standard & Poor's Rating Services placed its 'CCC+' corporate
credit rating on Lanham, Md.-based radio broadcaster Radio One
Inc. on CreditWatch with positive implications. The company has
proposed several transactions to refinance its capital structure
and acquire a controlling stake in TV One LLC. Upon completion of
the refinancing, and assuming there are no material changes to the
proposed terms, S&P expects to raise the corporate credit rating
to 'B' with a stable outlook.
RIDGEWOOD CORP.: Case Summary & 20 Largest Unsecured Creditors
--------------------------------------------------------------
Debtor: Ridgewood Corp.
500 Corporate Drive
Mahwah, NJ 07430
Bankruptcy Case No.: 10-30571
Chapter 11 Petition Date: July 2, 2010
Court: U.S. Bankruptcy Court
District of New Jersey (Newark)
Judge: Rosemary Gambardella
Debtor's Counsel: Daniel Stolz, Esq.
E-mail: dstolz@wjslaw.com
Leonard C. Walczyk, Esq.
E-mail: lwalczyk@wjslaw.com
Steven Z. Jurista, Esq.
E-mail: sjurista@wjslaw.com
Wasserman, Jurista & Stolz
225 Millburn Avenue, Suite 207
P.O. Box 1029
Millburn, NJ 07041-1712
Tel: (973) 467-2700
Fax: (973) 467-8126
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
A copy of the Debtor's list of 20 largest unsecured
creditors filed together with the petition is available for
free at http://bankrupt.com/misc/njb10-30571.pdf
The petition was signed by Stuart Weinstein, president.
ROBERT WILSON: Case Summary & 11 Largest Unsecured Creditors
------------------------------------------------------------
Debtor: Robert Alan Wilson
105 Ballentrae Drive
Hendersonville, TN 37075
Bankruptcy Case No.: 10-06942
Chapter 11 Petition Date: July 2, 2010
Court: U.S. Bankruptcy Court
Middle District of Tennessee (Nashville)
Debtor's Counsel: Steven L. Lefkovitz
Law Offices Lefkovitz & Lefkovitz
618 Church Street, Suite 410
Nashville, TN 37219
Tel: (615) 256-8300
Fax: (615) 255-4516
E-mail: slefkovitz@lefkovitz.com
Estimated Assets: $100,001 to $500,000
Estimated Debts: $1,000,001 to $10,000,000
According to the schedules, the Debtor says that assets total
$227,979 while debts total $2,788,238.
A copy of the Debtor's list of 11 largest unsecured
creditors filed together with the petition is available for
free at http://bankrupt.com/misc/tnmb10-06942.pdf
The petition was signed by the Debtor.
ROCK SOLID: Case Summary & 4 Largest Unsecured Creditors
--------------------------------------------------------
Debtor: Rock Solid Communities, Inc.
137 Amberhill Drive
Dallas, GA 30132
Bankruptcy Case No.: 10-42625
Chapter 11 Petition Date: July 2, 2010
Court: U.S. Bankruptcy Court
Northern District of Georgia (Rome)
Judge: Paul W. Bonapfel
Debtor's Counsel: Leon S. Jones, Esq.
Jones & Walden, LLC
21 Eighth Street, NE
Atlanta, GA 30309
Tel: (404) 564-9300
Fax: (404) 564-9301
E-mail: ljones@joneswalden.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
A copy of the Debtor's list of 4 largest unsecured creditors
filed together with the petition is available for free
at http://bankrupt.com/misc/ganb10-42625.pdf
The petition was signed by Steven Voyles, CFO.
RODCO TRUCKING: Case Summary & 20 Largest Unsecured Creditors
-------------------------------------------------------------
Debtor: RodCo Trucking, LLC
1408 South Lake Pleasant Road
Apopka, FL 32703
Bankruptcy Case No.: 10-11734
Chapter 11 Petition Date: July 1, 2010
Court: United States Bankruptcy Court
Middle District of Florida (Orlando)
Debtor's Counsel: James H. Monroe, Esq.
P.O. Box 540163
Orlando, FL 32854
Tel: (407) 872-7447
Fax: (407) 246-0008
E-mail: jhm@jamesmonroepa.com
Scheduled Assets: $50,803
Scheduled Debts: $1,335,952
A list of the Company's 20 largest unsecured creditors
filed together with the petition is available for free
at http://bankrupt.com/misc/flmb10-11734.pdf
The petition was signed by Jose A. Rodriguez, III, chief executive
officer.
SABOR CUBANO: Case Summary & 20 Largest Unsecured Creditors
-----------------------------------------------------------
Debtor: Sabor Cubano Inc
dba Restaurant Sabor Cubano
4 Calle Adonidia
Palma Real
Guaynabo, PR 00969
Bankruptcy Case No.: 10-05975
Chapter 11 Petition Date: July 2, 2010
Court: U.S. Bankruptcy Court
District of Puerto Rico (Old San Juan)
Debtor's Counsel: Victor Gratacos Diaz, Esq.
P.O. Box 7571
Caguas, PR 00726
Tel: (787) 746-4772
E-mail: vgratacd@coqui.net
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
According to the schedules, the Debtor says that assets total
$1,176,210 while debts total $2,322,750.
A copy of the Debtor's list of 20 largest unsecured
creditors filed together with the petition is available for
free at http://bankrupt.com/misc/prb10-05975.pdf
The petition was signed by Rafael Silva, president.
SALINAS INVESTMENTS: Case Summary & 16 Largest Unsecured Creditors
------------------------------------------------------------------
Debtor: Salinas Investments, Ltd
13639 Treasure Trail
San Antonio, TX 78232
Bankruptcy Case No.: 10-52525
Chapter 11 Petition Date: July 2, 2010
Court: U.S. Bankruptcy Court
Western District of Texas (San Antonio)
Judge: Ronald B. King
Debtor's Counsel: William B. Kingman, Esq.
4040 Broadway, Suite 450
San Antonio, TX 78209
Tel: (210) 829-1199
E-mail: bkingman@kingmanlaw.com
Estimated Assets: $10,000,001 to $50,000,000
Estimated Debts: $1,000,001 to $10,000,000
The petition was signed by Roberto Salinas, general partner.
Debtor's List of 16 Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
------ --------------- ------------
Roberto R. Salinas -- $134,216
P.O. Box 3125
Laredo, TX 78044
Modern Machine Shop -- $126,000
P.O. Box 1969
Laredo, TX 78044
Rosalia Salinas -- $30,000
1239 Bengor
San Diego, CA 92116
Gary, Thomasson, Hall & Marks -- $16,540
Galo Garcia -- $15,000
Cuellar Saldana Cuellar -- $2,000
Shirley Hale Mathis -- $1,500
CPL Retail Energy -- $730
AT&T -- $730
De Lage Landen Financial Svcs -- $267
Argus Security -- $166
City of Laredo Utilities -- $110
Carmin's Florist -- $97
OCE Imagistics -- $49
Culligan's of Laredo -- $47
AT&T Long Distance -- $20
SEDGEBROOK INC: Proposes to Pay Prepetition Employee Wages
----------------------------------------------------------
Sedgebrook, Inc., has 340 full and part-time employees.
Sedgebrook estimates that a total of $72,630 in unpaid salary,
wages and other compensation is owing to its employees as of the
Petition Date.
Monarch Landing, Inc., employs 186 full and part-time workers.
Monarch Landing estimates that $28,714 in unpaid salary, wages
and other compensation is owing to its Employees as of the
Petition Date.
"Any delay in paying prepetition employee obligations will
adversely impact Sedgebrook's and Monarch Landing's relationship
with their Employees and will irreparably impair the Employees'
morale, dedication and cooperation in these Chapter 11 cases,"
Paul Rundell, chief restructuring officer of Senior Living
Retirement Communities, LLC, f/k/a Erickson Retirement
Communities, LLC, tells the Court. At this early stage of their
Chapter 11 cases, Sedgebrook and Monarch Landing simply cannot
risk the substantial damage to their business that would result
from a decline in the Employees' morale and cooperation caused by
their failure to pay wages and benefits, Mr. Rundell says.
For these reasons, Sedgebrook and Monarch Landing seek permission
from Judge Jernigan to honor prepetition wages, salaries and
other compensation, employee medical and similar benefits and
other miscellaneous employee expenses and benefits.
Sedgebrook and Monarch Landing further ask the Court to direct
banks to honor all related checks and electronic payment
requests.
About the Debtors
Lincolnshire Campus filed for Chapter 11 bankruptcy protection on
June 15, 2010 (Bankr. N.D. Tex. Case No. 10-34176). Vincent P.
Slusher, Esq., at DLA Piper LLP US, assists the Company in its
restructuring effort. The Company estimated its assets and debts
at $100,000,001 to $500,000,000. Not-for-Profit Entities
Sedgebrook, Inc. and Monarch Landing Inc. also filed for Chapter
11 on June 15, 2010.
The Lincolnshire Debtors and the NFP Debtors are affiliates of
Erickson Retirement Communities LLC.
Baltimore, Maryland-based Erickson Retirement Communities LLC,
along with affiliates, filed for Chapter 11 on Oct. 19, 2009
(Bankr. N.D. Tex. Case No. 09-37010). DLA Piper LLP (US) serves
as counsel to the Debtors. BMC Group Inc. serves as claims and
notice agent. Houlihan, Lokey, Howard & Zoukin, Inc., is also
serving as investment and financial consultant. Alvarez & Marsal
is serving as restructuring adviser. Judge Stacey G.C. Jernigan
confirmed Erickson's Plan of Reorganization on April 16, 2010.
The confirmed Chapter 11 Plan is premised on the $365 million sale
of substantially all of the Erickson Retirement assets to Redwood
Capital Investments LLC and its affiliates. The Plan became
effective on April 30, 2010.
Erickson own 20 continuing care retirement communities in 11
states. Among Erickson's 20 communities, eight are completed, 11
are open although in construction, and one is in development.
They have 23,000 residents in total.
Bankruptcy Creditors' Service, Inc., publishes Erickson Retirement
Bankruptcy News. The newsletter tracks the Chapter 11 proceedings
of Erickson Retirement Communities LLC and Lincolnshire Campus.
(http://bankrupt.com/newsstand/or 215/945-7000)
SEDGEBROOK INC: Seeks to Use Cash Collateral
--------------------------------------------
Cash assets of Not-for-Profit Entities Sedgebrook, Inc., and
Monarch Landing Inc. are on deposit in numerous accounts on which
their secured creditors assert liens on. A portion of those
funds are in accounts not controlled by the secured creditors;
those accounts are referred to as operating accounts. As of
June 15, 2010, the amounts available for use in the Operating
Accounts total:
Debtor Cash Amount
------ -----------
Sedgebrook Inc. $7,000,000
Monarch Landing Inc. $937,000
Sedgebrook and Monarch Landing also maintain funds into an escrow
funds account, which contain these amounts as of June 14, 2010:
Debtor Cash Amount
------ -----------
Sedgebrook Inc. $3,574,000
Monarch Landing Inc. $2,228,000
Sedgebrook and Monarch Landing also have limited use reserve
accounts, which contain certain amounts as of June 14, 2010:
Accounts Sedgebrook Monarch
--------- ---------- ----------
Debt Service Reserve Funds $8,783,000 $3,258,000
Interest Funds 4,201,000 N/A
Operating Reserve Funds 1,623,000 N/A
Supplemental Account 1,539,000 4,088,000
Development Funds 1,429,000 N/A
Restricted Funds 1,036,000 N/A
At Sedgebrook's and Monarch Landing's behest, Judge Jernigan
permits Sedgebrook and Monarch Landing to use their Secured
Creditors' Cash Collateral in the Operating Accounts, on an
interim basis, pursuant to a six-week budget.
A copy of the Budget for Sedgebrook and Monarch Landing and other
Lincolnshire Debtors for the period covering June 18, 2010 to
July 23, 2010, is available for free at:
http://bankrupt.com/misc/Lincolnshire_PropBudgettillJul23.pdf
Judge Jernigan also approves, on an interim basis, Sedgebrook's
and Monarch Landing's proposed adequate protection to be afforded
to the Secured Creditors, which include:
(i) a replacement lien on all postpetition assets of
Sedgebrook and Monarch Landing pursuant to Section 361 of
the Bankruptcy Code to the extent of diminution in the
value of the Secured Creditors' interest in the Cash
Collateral; and
(ii) an administrative priority expense claim pursuant to
Section 507(b) of the Bankruptcy Code to the extent of
diminution in value of the Secured Creditors' interest in
the Cash Collateral.
To the extent unencumbered funds are not available to pay for
administrative expenses in full, the Adequate Protection granted
to the Secured Creditors will be subject only to payment of a
Carve-Out. The Carve-Out refers to:
(a) the unpaid fees of the Clerk of the Court and the U.S.
Trustee for Region 6 pursuant to Section 1930(a) of the
Judiciary and Judicial Procedure; and
(b) the aggregate accrued and unpaid fees and expenses payable
under Sections 330 and 331 to professionals retained by
Sedgebrook and Monarch Landing.
Counsel to Sedgebrook and Monarch Landing, J. Mark Chevallier,
Esq., at McGuire, Craddock & Strother, P.C., in Dallas, Texas,
stresses that without the continued use of the Cash Collateral,
Sedgebrook and Monarch Landing will not have sufficient funds
with which to operate their business on an ongoing basis.
Any objections to the interim approval of the Cash Collateral
Motions that have not been withdrawn, waived or settled are
overruled, Judge Jernigan avers.
Before entry of the orders, U.S. Bank National Association and
Wells Fargo National Bank Association filed objections to the
Cash Collateral Motions.
U.S. Bank and Wells Fargo asserted that they do not believe that
the proposed adequate protection is fair, reasonable or
constitutes reasonably equivalent value. However, the Bond
Trustees understand Sedgebrook's and Monarch Landing's need to
use Cash Collateral on an interim basis are thus, working with
Sedgebrook and Monarch Landing on agreements that would permit
the NFP Debtors to use the Bond Trustees' Cash Collateral on an
limited period of time, counsel to U.S. Bank, Cynthia J. Rerko,
Esq., in Dallas, Texas -- cjrerko@cynthiarerko.com -- related.
U.S. Bank is trustee to Sedgebrook's Series 2007A and 2007B
Illinois Finance Authority Revenue Bonds. Wells Fargo is
indenture trustee for bonds issued for Monarch Landing.
The Court will convene a final hearing on the Cash Collateral
Motions on July 16, 2010. Objections are due July 14.
About the Debtors
Lincolnshire Campus filed for Chapter 11 bankruptcy protection on
June 15, 2010 (Bankr. N.D. Tex. Case No. 10-34176). Vincent P.
Slusher, Esq., at DLA Piper LLP US, assists the Company in its
restructuring effort. The Company estimated its assets and debts
at $100,000,001 to $500,000,000. Not-for-Profit Entities
Sedgebrook, Inc. and Monarch Landing Inc. also filed for Chapter
11 on June 15, 2010.
The Lincolnshire Debtors and the NFP Debtors are affiliates of
Erickson Retirement Communities LLC.
Baltimore, Maryland-based Erickson Retirement Communities LLC,
along with affiliates, filed for Chapter 11 on Oct. 19, 2009
(Bankr. N.D. Tex. Case No. 09-37010). DLA Piper LLP (US) serves
as counsel to the Debtors. BMC Group Inc. serves as claims and
notice agent. Houlihan, Lokey, Howard & Zoukin, Inc., is also
serving as investment and financial consultant. Alvarez & Marsal
is serving as restructuring adviser. Judge Stacey G.C. Jernigan
confirmed Erickson's Plan of Reorganization on April 16, 2010.
The confirmed Chapter 11 Plan is premised on the $365 million sale
of substantially all of the Erickson Retirement assets to Redwood
Capital Investments LLC and its affiliates. The Plan became
effective on April 30, 2010.
Erickson own 20 continuing care retirement communities in 11
states. Among Erickson's 20 communities, eight are completed, 11
are open although in construction, and one is in development.
They have 23,000 residents in total.
Bankruptcy Creditors' Service, Inc., publishes Erickson Retirement
Bankruptcy News. The newsletter tracks the Chapter 11 proceedings
of Erickson Retirement Communities LLC and Lincolnshire Campus.
(http://bankrupt.com/newsstand/or 215/945-7000)
SEDGEBROOK INC: Wants to Escrow Initial Entrance Deposits
---------------------------------------------------------
Residents in continuing care retirement communities operated by
Sedgebrook, Inc., and Monarch Landing, Inc., each pay an Initial
Entrance Deposit on a unit when they move in or when they are the
first resident to occupy a particular unit. When a resident
moves out or dies, if the unit's new resident pays an entry
deposit that is the same or greater than the entry deposit paid
by the departing resident then the departing resident's entry
deposit will be refunded 100%. Sedgebrook and Monarch Landing
will keep the difference between the new entry deposit from the
sale of the unit and the departing resident's deposit.
A resident's willingness to pay the Initial Entrance Deposit to
Sedgebrook and Monarch Landing is necessarily dependent on that
resident's conviction that Sedgebrook's and Monarch Landing's
bankruptcy will not negatively affect the refundability of the
Initial Entrance Deposit, Paul Rundell, chief restructuring
officer of Senior Living Retirement Communities, LLC f/k/a
Erickson Retirement Communities, LLC, stresses. "Any negative
publicity suggesting that a community is in bankruptcy will deter
prospective residents from entering into new residence and care
agreements, which are the precursors to Sedgebrook's and Monarch
Landing's receipt of future Initial Entrance Deposits," he
asserts.
For these reasons, Sedgebrook and Monarch Landing sought and
obtained permission from the Court to escrow all Initial Entrance
Deposits collected postpetition pending confirmation of a
reorganization plan or sale of substantially all of their assets
or other order of the Court.
Sedgebrook and Monarch Landing will separately enter into
separate escrow agreements with U.S. Bank National Association
and Wells Fargo National Bank Association without delay.
U.S. Bank is trustee to Sedgebrook's Series 2007A and 2007B
Illinois Finance Authority Revenue Bonds. Wells Fargo is
indenture trustee for bonds issued for Monarch Landing, Inc.
With respect to Monarch Landing, it will provide Wells Fargo and
Fifth Third Bank an account of the Initial Entrance Deposits
deposited into an escrow account every two weeks beginning
June 30, 2010, Judge Jernigan rules.
Similarly, Sedgebrook will provide U.S. Bank and Sovereign Bank
an accounting of the Initial Entrance Deposits deposited into an
escrow account every two weeks starting June 30, 2010.
Should any transaction involving Monarch Landing and Sedgebrook
occur that results in a closure of the campuses they operate, the
Initial Entrance Deposits in the Escrow Account will be returned
by the Escrow Agent to the applicable residents who had made
those payments without further order of the Court.
Bond Trustees React
The Bond Trustees said they do not object to the IED Motions.
The Bond Trustees related that they had certain conversations
with Monarch Landing and Sedgebrook concerning a proposed agreed-
to order. To the extent the parties are unable to reach an
agreement, the Bond Trustees reserved all of their rights and
remedies, including their right to object to entry of the order.
About the Debtors
Lincolnshire Campus filed for Chapter 11 bankruptcy protection on
June 15, 2010 (Bankr. N.D. Tex. Case No. 10-34176). Vincent P.
Slusher, Esq., at DLA Piper LLP US, assists the Company in its
restructuring effort. The Company estimated its assets and debts
at $100,000,001 to $500,000,000. Not-for-Profit Entities
Sedgebrook, Inc. and Monarch Landing Inc. also filed for Chapter
11 on June 15, 2010.
The Lincolnshire Debtors and the NFP Debtors are affiliates of
Erickson Retirement Communities LLC.
Baltimore, Maryland-based Erickson Retirement Communities LLC,
along with affiliates, filed for Chapter 11 on Oct. 19, 2009
(Bankr. N.D. Tex. Case No. 09-37010). DLA Piper LLP (US) serves
as counsel to the Debtors. BMC Group Inc. serves as claims and
notice agent. Houlihan, Lokey, Howard & Zoukin, Inc., is also
serving as investment and financial consultant. Alvarez & Marsal
is serving as restructuring adviser. Judge Stacey G.C. Jernigan
confirmed Erickson's Plan of Reorganization on April 16, 2010.
The confirmed Chapter 11 Plan is premised on the $365 million sale
of substantially all of the Erickson Retirement assets to Redwood
Capital Investments LLC and its affiliates. The Plan became
effective on April 30, 2010.
Erickson own 20 continuing care retirement communities in 11
states. Among Erickson's 20 communities, eight are completed, 11
are open although in construction, and one is in development.
They have 23,000 residents in total.
Bankruptcy Creditors' Service, Inc., publishes Erickson Retirement
Bankruptcy News. The newsletter tracks the Chapter 11 proceedings
of Erickson Retirement Communities LLC and Lincolnshire Campus.
(http://bankrupt.com/newsstand/or 215/945-7000)
SMITH DAIRY: Case Summary & 20 Largest Unsecured Creditors
----------------------------------------------------------
Debtor: Smith Dairy
6545 County Road 33
Yuma, CO 80759-7833
Bankruptcy Case No.: 10-26703
Chapter 11 Petition Date: July 2, 2010
Court: U.S. Bankruptcy Court
District of Colorado (Denver)
Judge: Elizabeth E. Brown
Debtor's Counsel: David P. Hutchinson, Esq.
950 17th Street, Suite 1600
Denver, CO 80202
Tel: (303) 825-8400
E-mail: dhutchinson@ottenjohnson.com
Jeffrey Weinman, Esq.
E-mail: jweinman@epitrustee.com
William A. Richey, Esq.
E-mail: lkraai@weinmanpc.com
730 17th Street, Suite 240
Denver, CO 80202
Tel: (303) 572-1010
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
A copy of the Debtor's list of 20 largest unsecured
creditors filed together with the petition is available for
free at http://bankrupt.com/misc/cob10-26703.pdf
The petition was signed by Roy E. Smith, partner.
SPECIALTY PRODUCTS: Gets Final Approval for $40-Mil. Financing
--------------------------------------------------------------
Bill Rochelle at Bloomberg News reports that Specialty Products
Holding Corp. and Bondex International Inc. received the
bankruptcy court's final approval to access $40 million in
financing from lenders led by Wachovia Financial Corp. (New
England), as agent. The Debtors had interim authority to borrow
$5 million since June 2.
About Specialty Products
Cleveland, Ohio-based Specialty Products Holdings Corp., aka RPM,
Inc., is a wholly owned subsidiary of RPM International Inc. The
Company is the holding company parent of Bondex International,
Inc., and the direct or indirect parent of certain additional
domestic and foreign subsidiaries. The Company claims to be a
leading manufacturer, distributor and seller of various specialty
chemical product lines, including exterior insulating finishing
systems, powder coatings, fluorescent colorants and pigments,
cleaning and protection products, fuel additives, wood treatments
and coatings and sealants, in both the industrial and consumer
markets.
The Company filed for Chapter 11 bankruptcy protection on May 31,
2010 (Bankr. D. Del. Case No. 10-11780). Gregory M. Gordon, Esq.,
Dan B. Prieto, Esq., and Robert J. Jud, Esq., at Jones Day, serve
as bankruptcy counsel. Daniel J. DeFranceschi, Esq., and Zachary
I. Shapiro, Esq., at Richards Layton & Finger, serve as
co-counsel. Logan and Company is the Company's claims and notice
agent.
The Company estimated its assets and debts at $100,000,001 to
$500,000,000.
The Company's affiliate, Bondex International, Inc., filed a
separate Chapter 11 petition on May 31, 2010 (Case No. 10-11779),
estimating its assets and debts at $100,000,001 to $500,000,000.
STRIKEFORCE TECH: Mark Carrao Resigns as Chief Financial Officer
----------------------------------------------------------------
The Board of Directors of StrikeForce Technologies Inc. accepted
the resignation of Mark Corrao as the Chief Financial Officer. To
the knowledge of the Board and executive officers of the Company,
Mark Corrao had no disagreement with the Company on any matter
related to the Company's operations, policies or practices.
Edison, N.J.-based StrikeForce Technologies, Inc. a software
development and services company that offers a suite of integrated
computer network security products using proprietary technology.
* * *
The Company's balance sheet at March 31, 2010, showed $1.1 million
in total assets and $9.7 million in total liabilities, for a
stockholder's deficit of $8.6 million.
SUMMIT HOTEL: Dismisses Eide Bailly as Independent Accountant
-------------------------------------------------------------
Concurrent with the engagement of KPMG, Summit Hotel Properties,
LLC dismissed the engagement of Eide Bailly, LLP, from its
position as the Company's independent registered public accounting
firm.
Eide Bailly served as the Company's independent registered public
account firm since November 1, 2008. No report on the Company's
financial statements prepared by Eide Bailly during the fiscal
years ended December 31, 2008 and December 31, 2009 and the
subsequent interim period through June 28, 2010, contained an
adverse opinion or a disclaimer of opinion, or was qualified or
modified as to uncertainty, audit scope or accounting principles.
Further, during the fiscal years ended December 31, 2008 and
December 31, 2009 and the subsequent interim period through June
28, 2010, there were no disagreements between the Company and Eide
Bailly on any matter of accounting principles or practices,
financial statement disclosure, or auditing scope or procedure
which, if not resolved to the satisfaction of Eide Bailly, would
have caused it to make reference to the subject matter of the
disagreement in connection with a report. The Company's Audit
Committee recommended the dismissal of Eide Bailly, and such
recommendation was adopted by the Company's Board of Directors.
In accordance with Item 304(a)(3) of Regulation S-K, the Company
has provided Eide Bailly a copy of the disclosures it is making in
this Current Report on Form 8-K prior to filing with the SEC and
requested that Eide Bailly furnish the Company with a letter
addressed to the SEC stating whether or not Eide Bailly agrees
with the above statements. A copy of that letter, dated June 29,
2010, is filed as Exhibit 16.1 to this Current Report on Form 8-K.
During the fiscal years ended December 31, 2008 and December 31,
2009 and the subsequent interim period through June 28, 2010,
neither the Company nor anyone on its behalf has consulted with
KPMG regarding (i) the application of accounting principles to a
specific transaction, either completed or proposed, (ii) the type
of audit opinion that might be rendered on the Company's financial
statements, (iii) any matter that was the subject of a
disagreement within the meaning of Item 304(a)(1)(iv) of
Regulation S-K and the related instructions to Item 304 of
Regulation S-K or (iv) any reportable event within the meaning of
Item 304(a)(1)(v) of Regulation S-K.
About Summit Hotel
Summit Hotel Properties, LLC is a developer, owner and manager of
hotels categorized as mid-scale without food and beverage and
upscale hotels located throughout the United States. As of
December 31, 2009, the Company owned 65 hotels in 19 states. The
Company's revenues and earnings are derived from hotel operations
of its owned hotels. An affiliate, The Summit Group, Inc.,
provides a number of services for its hotels, including hotel
operations management, location of acquisition targets and
construction sites, development of construction sites, and
construction supervision. As of December 31, 2009, Summit Hotel
Properties had two wholly owned limited liability companies that
own hotel properties. Summit Hospitality I, LLC owns 25 of the
Company's hotels. In addition, Summit Hospitality V, LLC, is a
wholly owned subsidiary, which owns 13 of the Company's hotels.
* * *
According to the Troubled Company Reporter on April 29, 2010,
Summit Hotel Properties, LLC's forbearance agreement with Fortress
Credit Corp. has expired on May 3.
TEXAS RANGERS: New Era Seeks Payment of $106,595 for Caps Sold
--------------------------------------------------------------
Eric Morath at Dow Jones Daily Bankruptcy Review reports that New
Era Cap Inc. said in court papers that the Texas Rangers owe
$106,595.64 for goods purchased prior to the bankruptcy filing.
New Era wants the Debtor to pay it in full before the parties'
contract can be moved to a new owner. Alternatively, New Era is
seeking permission to deduct what it's owed from the company's
bill for advertising with the Rangers. That bill is also just
more than $106,000.
New Era is the maker of 59Fifty caps and the Rangers' official
supplier of hats. New Era makes the blue and red Texas "T" logo
hats for the Rangers.
The Chapter 11 Plan
Texas Rangers' Bankruptcy Plan provides for the sale of
substantially all of the assets of TRBP -- including the Texas
Rangers Major League Baseball Club -- to Rangers Baseball Express
LLC, an entity controlled by Chuck Greenberg and Nolan Ryan,
through the Prepackaged Plan. Although the lenders are owed $525
million in total, they receive only $75 million directly from the
team because that's the limit of the secured debt the team itself
guaranteed.
About Texas Rangers
Texas Rangers Baseball Partners owns and operates the Texas
Rangers Major League Baseball Club, a professional baseball club
in the Dallas/Fort Worth Metroplex. TRBP is a Texas general
partnership, in which subsidiaries of HSG Sports Group LLC own a
100% stake. Controlled by Thomas O. Hicks, HSG also indirectly
wholly-owns Dallas Stars, L.P., which owns and operates the Dallas
Stars National Hockey League franchise. The Texas Rangers have
had five owners since the club moved to Arlington in 1972. Mr.
Hicks became the fifth owner in the history of the Texas Rangers
on June 16, 1998.
In its petition, Texas Rangers Baseball Partners said it had both
assets and debt of less than $500 million.
Weil, Gotshal & Manges LLP serves as bankruptcy counsel to the
Debtor. Forshey & Prostok LLP serves as conflicts counsel.
Parella Weinberg Partners LP serves as financial advisor.
Lenders to the Texas Rangers sought to force the baseball team's
equity owners -- Rangers Equity Holdings, L.P. and Rangers Equity
Holdings GP, LLC -- into bankruptcy court protection (Bankr. N.D.
Tex. Case No. 10-43624 and 10-43625). The lenders, a group that
includes investment funds Monarch Alternative Capital and
Kingsland Capital Management, filed an involuntary bankruptcy
petition on May 28 against the two companies. The two companies
were not included in the May 24 Chapter 11 filing of TRBP.
TITUS TRANSPORTATION: Case Summary & Creditors Lists
----------------------------------------------------
Debtor: Titus Transportation, LP
c/o Wright Ginsberg Brusilow P.C.
14755 Preston Road, Suite 600
Dallas, TX 75254
Tel: (972) 788-1600
Bankruptcy Case No.: 10-42202
Chapter 11 Petition Date: July 2, 2010
Court: United States Bankruptcy Court
Eastern District of Texas (Sherman)
Debtor's Counsel: Frank J. Wright, Esq.
Paul B. Geilich, Esq.
Wright Ginsberg Brusilow P.C.
600 Signature Place
14755 Preston Road, Suite 600
Dallas, TX 75254
Tel: (972) 788-1600
Fax: (972) 239-0138
E-mail: bankruptcy@wgblawfirm.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
Debtor affiliate that filed separate Chapter 11 petition:
Debtor Case No. Petition Date
------ -------- -------------
Titus Logistics Services, LP 10-42203 7/2/2010
Assets: $1,000,001 to $10,000,000
Debts: $1,000,001 to $10,000,000
A copy of Titus Transportation's list of 20 largest unsecured
creditors filed together with the petition is available for free
at http://bankrupt.com/misc/txeb10-42202.pdf
A copy of Titus Logistics' list of 20 largest unsecured creditors
filed together with the petition is available for free at
http://bankrupt.com/misc/txeb10-42203.pdf
The petitions were signed by Brent Hagenbuch, sole and managing
member of Titus Capital, LLC, general partner.
TRACY PRESS: Voluntary Chapter 11 Case Summary
----------------------------------------------
Debtor: Tracy Press, Inc.
P.O. Box 419
Tracy, CA 95378
Bankruptcy Case No.: 10-37525
Chapter 11 Petition Date: July 2, 2010
Court: U.S. Bankruptcy Court
Eastern District of California (Sacramento)
Judge: Christopher M. Klein
Debtor's Counsel: David C. Johnston, Esq
1014 16th Street
P.O. Box 3212
Modesto, CA 95353
Tel: (209) 521-6260
Estimated Assets: $500,001 to $1,000,000
Estimated Debts: $1,000,001 to $10,000,000
The Debtor did not file a list of creditors together with its
petition.
The petition was signed by Robert S. Matthews, president.
TRIBUNE CO: Examiner Report Expected July 26
--------------------------------------------
Judge Kevin J. Carey of the U.S. Bankruptcy Court for the District
of Delaware gave Kenneth N. Klee, the examiner appointed in the
Chapter 11 case of Tribune Company and its debtor affiliates,
until July 26, 2010, to file a report on his investigation of the
Debtors.
The approved deadline is one day earlier than what was originally
sought by the Examiner. He sought extension of his filing
deadline to July 27 given the enormity of the documentary record
that had to be reviewed prior to conducting interviews, it was not
possible to start interview prior to June.
Pursuant to the Examiner Appointment Order, Mr. Klee is directed
to conduct an investigation and prepare a report regarding, among
others, potential claims, causes of action, and defenses asserted
in respect of the leveraged buy-out of Tribune that occurred in
2007. That report must be filed on or before July 12, 2010.
Mr. Klee relates that after his appointment as examiner, he and
his professionals have been working diligently on the
Investigation. Moreover, he notes, as a result of information
adduced during and after the interviews conducted, it has become
apparent that he is going to conduct more witness interviews than
previously anticipated.
The Debtors tell the Court that they support providing the
Examiner sufficient time to complete his report stating that the
extension request of approximately two weeks to file his report is
not unexpected. Reuters, quoting Tribune spokesman Gary Weitman,
said "although it may delay our confirmation hearing for a short
period of time, we are supportive of the request in the interest
of enabling the examiner to do a thorough and complete review."
JPMorgan Chase Bank, N.A., agent for the Debtors' prepetition
senior lenders and a holder of senior loan claims; Angelo Gordon &
Co LP, on behalf of certain funds and managed accounts holding
senior loan claims; Law Debenture Trust Company of New York,
solely in its capacity as successor indenture trustee for certain
series of the Debtors' prepetition senior notes; Centerbridge
Credit Advisors LLC, on behalf of certain funds and managed
accounts holding senior notes claims; and the Official Committee
of Unsecured Creditors submitted with the Court a joinder to the
Debtors' reply.
About Tribune Co.
Headquartered in Chicago, Illinois, Tribune Co. --
http://www.tribune.com/-- is a media company, operating
businesses in publishing, interactive and broadcasting, including
ten daily newspapers and commuter tabloids, 23 television
stations, WGN America, WGN-AM and the Chicago Cubs baseball team.
The Company and 110 of its affiliates filed for Chapter 11
protection on Dec. 8, 2008 (Bankr. D. Del. Lead Case No. 08-
13141). The Debtors proposed Sidley Austion LLP as their counsel;
Cole, Schotz, Meisel, Forman & Leonard, PA, as Delaware counsel;
Lazard Ltd. and Alvarez & Marsal North Americal LLC as financial
advisors; and Epiq Bankruptcy Solutions LLC as claims agent. As
of Dec. 8, 2008, the Debtors have $7,604,195,000 in total assets
and $12,972,541,148 in total debts.
Bankruptcy Creditors' Service, Inc., publishes Tribune Bankruptcy
News. The newsletter tracks the chapter 11 proceeding undertaken
by Tribune Company and its various affiliates.
(http://bankrupt.com/newsstand/or 215/945-7000)
TRIBUNE CO: Plan Hearing Pushed Back to August 30
-------------------------------------------------
At the conclusion of the July 1, 2010 hearing, Judge Kevin Carey
extended Tribune Co's plan-related deadlines to accommodate the
extension he gave for the Examiner to submit his report regarding
his investigation of the bankruptcy cases and the Debtors'
leveraged buyout in 2007.
The Court, at the proposal of the Debtors, set these Plan-related
deadlines:
* the Voting Deadline is extended to August 6, 2010
* objection Deadline is extended to August 13, 2010;
* the deadline for Voting Agent to file the results of its
tabulation of votes to accept or reject the Plan is extended
to August 13, 2010;
* responses to any objection to confirmation of the Plan will
be filed on or before August 25, 2010; and
* Confirmation Hearing is continued to August 30, 2010.
According to the Debtors, they have informed major constituencies
regarding the Amended Deadlines and only the Credit Agreement
Lenders have indicated a remaining objection to the voting
deadline.
The Credit Agreement Lenders have stated previously that they
intend to file a plan of reorganization upon expiration of the
Debtors' exclusivity. The Debtors believe that extending the
voting deadline as requested by the Credit Agreement Lenders will
be confusing and disruptive to the Plan solicitation process and
not in the best interests of the estates.
About Tribune Co.
Headquartered in Chicago, Illinois, Tribune Co. --
http://www.tribune.com/-- is a media company, operating
businesses in publishing, interactive and broadcasting, including
ten daily newspapers and commuter tabloids, 23 television
stations, WGN America, WGN-AM and the Chicago Cubs baseball team.
The Company and 110 of its affiliates filed for Chapter 11
protection on Dec. 8, 2008 (Bankr. D. Del. Lead Case No. 08-
13141). The Debtors proposed Sidley Austion LLP as their counsel;
Cole, Schotz, Meisel, Forman & Leonard, PA, as Delaware counsel;
Lazard Ltd. and Alvarez & Marsal North Americal LLC as financial
advisors; and Epiq Bankruptcy Solutions LLC as claims agent. As
of Dec. 8, 2008, the Debtors have $7,604,195,000 in total assets
and $12,972,541,148 in total debts.
Bankruptcy Creditors' Service, Inc., publishes Tribune Bankruptcy
News. The newsletter tracks the chapter 11 proceeding undertaken
by Tribune Company and its various affiliates.
(http://bankrupt.com/newsstand/or 215/945-7000)
TRIBUNE CO: Wells Fargo Proposes Claims Adjudication Protocol
-------------------------------------------------------------
Wells Fargo Bank, N.A., solely as successor administrative agent
under a $1.6 billion Senior Unsecured Interim Loan Agreement dated
as of December 20, 2007, seeks the Court's authority to establish
procedures for adjudicating objections to the Bridge Loan Claims.
The Bridge Loan Claims, in the amount of $1,619,506,849, were
scheduled as undisputed in Tribune Company's Schedules of Assets
and Liabilities filed on June 12, 2009. However, the Debtors'
Amended Joint Plan of Reorganization provides that if Bridge
Lenders do not vote to accept the Plan, the Bridge Loan Claims
will be deemed disputed and subject to disallowance.
Wells Fargo complains that the Debtors threaten to pursue
fraudulent conveyance and avoidance theories to dispute the Bridge
Lenders' claims and to engage in "protracted litigation" with the
Bridge Lenders over the disallowance of their claims, which
litigation will not commence until several months after the
Effective Date.
"Notably, the Bridge Lenders are the only class who would receive
that treatment under the Plan even though a large portion of the
Senior Credit Facility was funded as the same time as the Bridge
Facility," points Jeffrey M. Schlerf, Esq., at Fox Rothschild LLP,
in Wilmington, Delaware -- jschlerf@foxrothschild.com -- attorney
for Wells Fargo.
Mr. Schlerf complains that the Debtors' approach is clearly a
tactic designed to punish the Bridge Lenders by subjecting holders
of Bridge Loan Claims to protracted and unnecessary litigation and
delaying their distributions if they refuse to support the unfair
settlement and accept the meager distributions that they would
receive under the Plan.
"The process that the Debtors have devised to address the
allowance of the Bridge Loan Claims unfairly prejudices the Bridge
Lenders, defies common sense, and would result in a waste of the
Court's and the estates' resources," Mr. Schlerf asserts. He adds
that in seeking to delay presentation of their objection to the
Bridge Loan Claims until well after the Effective Date, the
Debtors' proposal would require the parties to litigate many of
the same issues twice: once at confirmation in connection with
determining whether the Settlement of the LBO-Related Causes of
Action is reasonable, and again several months later in connection
with their post-confirmation challenge to the Bridge Loan Claims.
According to Mr. Schlerf, there is no legitimate reason why
allowance of the Bridge Loan Claims should not also be adjudicated
at Plan Confirmation.
Accordingly, Wells Fargo seeks to implement these procedures:
* Any discovery relating to the claims objections will be
conducted pursuant to the Court's Discovery and Scheduling
Order for the Plan Confirmation, dated May 13, 2010, with
those modifications as agreed to by the parties or as
directed by the Court.
* The Debtors will file a memorandum of law providing the
basis for disputing the Bridge Loan Claims by July 20, 2010.
* Wells Fargo will submit any response to thereto by August 3,
2010.
* A hearing on the Debtors' objections to the Bridge Loan
Claims will be held in conjunction with the Confirmation
Proceedings scheduled to commence on August 16, 2010.
Wells Fargo also asks the Court to ultimately allow its claims in
full.
About Tribune Co.
Headquartered in Chicago, Illinois, Tribune Co. --
http://www.tribune.com/-- is a media company, operating
businesses in publishing, interactive and broadcasting, including
ten daily newspapers and commuter tabloids, 23 television
stations, WGN America, WGN-AM and the Chicago Cubs baseball team.
The Company and 110 of its affiliates filed for Chapter 11
protection on Dec. 8, 2008 (Bankr. D. Del. Lead Case No. 08-
13141). The Debtors proposed Sidley Austion LLP as their counsel;
Cole, Schotz, Meisel, Forman & Leonard, PA, as Delaware counsel;
Lazard Ltd. and Alvarez & Marsal North Americal LLC as financial
advisors; and Epiq Bankruptcy Solutions LLC as claims agent. As
of Dec. 8, 2008, the Debtors have $7,604,195,000 in total assets
and $12,972,541,148 in total debts.
Bankruptcy Creditors' Service, Inc., publishes Tribune Bankruptcy
News. The newsletter tracks the chapter 11 proceeding undertaken
by Tribune Company and its various affiliates.
(http://bankrupt.com/newsstand/or 215/945-7000)
TRICO MARINE: Amends Credit Agreements With Lenders
---------------------------------------------------
Trico Marine Services Inc. and its subsidiaries entered into first
amendment to Credit Agreement with Coastal, TMI, TMS Hong Kong,
Servicios de Apoyo, Trico Maritimos, Trico Cayman, Holdco, and
Trico International, as guarantors, Nordea Bank Finland plc, New
York Branch, as collateral agent, Obsidian Agency Services, Inc.,
as administrative agent, and affiliates of Tennenbaum Capital
Partners, LLC, as lenders.
The First Amendment amends the Company's Second Amended and
Restated Credit Agreement dated as of June 11, 2010 to:
i) permit the creation of certain liens,
ii) except the bankruptcy filing by certain subsidiaries of the
Company from the events of default, and
iii) suspend the effectiveness of the guarantee of the Holdco
Credit Agreement by TMI until such time as Trico files for
bankruptcy protection.
On June 21, 2010, Trico Shipping AS, an indirect, wholly-owned
subsidiary of the Company, entered into a Second Amendment to
Credit Agreement and Forbearance Agreement dated as of June 17,
2010 by and among Trico Shipping, as borrower, the Company and
certain of its subsidiaries, as guarantors, Nordea, as
administrative agent, and Nordea and Unicredit Bank AG, as
lenders.
The Second Amendment provides a forbearance from enforcement of
remedies and waives any defaults arising from the failure of Trico
to make a scheduled interest payment on its 8.125% secured
convertible debentures due 2013 and certain related matters,
including a potential bankruptcy filing by Trico and certain of
its subsidiaries and amends Trico Shipping's Credit Agreement
dated as of October 30, 2009 to, among other things:
i) increase the interest rate by 2% during the forbearance
period,
ii) permit the incurrence of additional indebtedness by Trico
Shipping,
iii) revise the manner in which certain prepayments are applied
to scheduled commitment reductions, and
iv) add financial covenants relating to minimum cash and
minimum EBITDA.
The Second Amendment became effective on June 30, 2010.
On June 29, 2010, Trico Shipping entered into the Third Amendment
to Credit Agreement and Forbearance Agreement by and among Trico
Shipping, as borrower, the Company and certain of it subsidiaries,
as guarantors, Nordea, as administrative agent, and Nordea,
Unicredit Bank AG and affiliates of Tennenbaum Capital, as
lenders.
The Third Amendment amends the Shipping Credit Agreement to
provide for the addition of a term loan facility to be provided by
affiliates of Tennenbaum Capital, including up to $50 million in
Tranche A Term Loans and up to $15 million in Tranche B Term
Loans. Proceeds of the Term Loans may be used:
i) to pay fees and expenses relating to the Third Amendment
and the Shipping Credit Agreement,
ii) for general corporate and working capital purposes and
iii) to repay outstanding revolving loans.
The Tranche A Term Loans are available in up to two borrowings
until six months following the date of the Third Amendment, such
availability being subject to certain conditions, including the
delivery to the lenders of certain additional documents and legal
opinions. The Tranche B Term Loans are available in one borrowing
until March 31, 2011, such availability being subject to certain
conditions, including the termination and repayment in full of the
revolving credit facility under the Shipping Credit Agreement and
delivery to the lenders of certain additional documents and legal
opinions. On the date of the Third Amendment, Trico Shipping
borrowed approximately $28 million of Tranche A Term Loans, to be
used:
i) to repay the revolving lenders in connection with the
reduction of the revolving loan commitments to $15 million,
ii) to pay fees and expenses relating to the Third Amendment,
and
iii) for working capital and general corporate purposes.
The Term Loans mature on January 31, 2014, and will bear interest
at the initial rate of 13.5% per annum until June 30, 2013, and
14.5% per annum thereafter. Undrawn amounts under the Term Loan
Facility are subject to a fee equal to 1.5% per annum until
December 31, 2010, and 2.5% per annum thereafter. The Term Loans
may be prepaid as follows:
i) no prepayments may be made prior to January 1, 2011,
ii) from January 1, 2011 to December 31, 2011, $20 million of
Term Loans may be prepaid without premium with any further
amounts prepaid during such period being subject to a 5%
prepayment premium,
iii) from January 1, 2012 to December 31, 2012, $20 million of
Term Loans may be prepaid without premium with any further
amounts prepaid during such period being subject to a 3%
prepayment premium and
iv) from January 1, 2013, and thereafter, prepayments may be
made without premium.
Additionally, the Third Amendment amended certain of the
restrictive covenants, including those relating to the ability of
Trico Shipping and certain of its affiliates to make dividends or
investments.
On June 25, 2010, Trico Shipping accepted consents from holders of
its outstanding 11?% senior secured notes due 2014 that were
validly delivered, pursuant to its previously announced
solicitation of consents from holders of its Shipping Notes to:
i) modify certain covenants, defaults, remedies, definitions
and related provisions contained in the indenture, dated as
of October 30, 2009, among Trico Shipping, as issuer, the
guarantors identified therein and Deutsche Bank National
Trust Company, as trustee thereunder, pursuant to which the
Shipping Notes were issued, and
ii) waive certain defaults and events of default and rescind
any acceleration of principal or interest under the
Shipping Indenture related thereto in the event that
certain defaults of the Shipping Notes have occurred prior
to the proposed amendments becoming operative. All holders
of the Shipping Notes validly delivered, and did not
revoke, their consents prior to the Expiration Time.
On June 25, 2010, Trico Shipping and the Guarantors entered into
the first supplemental indenture with Deutsche Bank, as trustee,
to the Shipping Indenture following the receipt of the requisite
consents of the holders of the Shipping Notes. The amendments to
the Shipping Indenture set forth in the First Supplemental
Indenture are now operative following the satisfaction of the
preconditions set forth in the First Supplemental Indenture.
On June 29, 2010, Trico Shipping entered into the First Amendment
to the Collateral Agency and Intercreditor Agreement, dated as of
October 30, 2009, by and among the Guarantors, Nordea, as the
working capital facility agent, Deutsche Bank, as trustee, and
Wilmington Trust FSB, as collateral agent. The Intercreditor
Amendment amends the Intercreditor Agreement by, among other
things, increasing the amount of indebtedness permitted to be
secured by the collateral from $450 million to $465 million.
On June 27, 2010, the Company and certain holders of the
Debentures issued under that certain Indenture dated as of May 14,
2009, between the Company and U.S. Bank National Association, as
Trustee, entered into a Forbearance Agreement. The Agreement will
terminate on the earlier to occur of:
i) August 15, 2010,
ii) the breach of certain covenants, including the consummation
of certain non-ordinary course transactions as described
more fully in the third sentence of the following
paragraph,
iii) the Company's failure to deliver to the Consenting Holders
a comprehensive draft of a proposed restructuring by the
close of business on July 30, 2010, and
iv) upon five days written notice of termination from the
Consenting Holders, such written notice to be given no
earlier than July 19, 2010.
Under the Agreement, each Consenting Holder agreed, among other
things, not to:
i) pursue any remedy against the Company under the Debentures
or the Indenture, as applicable, or
ii) initiate, or have initiated on its behalf, any litigation
or proceeding of any kind with respect to the Debentures
other than to enforce the Agreement.
Further, each Consenting Holder agreed to request that the trustee
of the Indenture not enforce remedies pursuant to the terms of the
Debentures or Indenture until the Agreement has terminated. Under
the Agreement, the Company shall not consummate any financing
transaction or material transactions outside the ordinary course
of business without providing the Consenting Holders and their
advisors advance notice of at least 48 hours; provided that the
foregoing shall not apply to, among other things, the granting of
certain security interests or liens in collateral for the benefit
of the secured parties under Trico Shipping's outstanding notes
and related indenture.
About Trico Marine
Woodlands, Texas-based Trico Marine Services is a provider of
support vessels for the offshore oil and natural-gas industry.
At March 31, 2010, the Company had total assets of $1,013,628,000
against total liabilities of $985,940,000.
Trico Marine has failed to make the $8.0 million interest payment
on $202.8 million in aggregate principle amount of its 8.125%
secured convertible debentures due 2013. On June 17, 2010, the
30-day grace period permitted under the 8.125% Indenture expired,
triggering an Event of Default.
The Troubled Company Reporter on June 16, 2010, said Trico Marine
has signed a revised loan agreement on June 11 requiring the
company to file under Chapter 11 no later than Sept. 8. The
agreement with affiliates Tennenbaum Capital Partners LLC provides
for converting the existing $25 million revolving credit
commitment into a $25 million term loan commitment. Nordea Bank
Finland plc, New York Branch, as collateral agent, Obsidian Agency
Services, Inc., as administrative agent, also signed the
agreement.
As reported by the TCR on June 15, 2010, Trico said that it and
Evercore Partners are in discussions with various potential
lenders and some of the Company's existing debtholders regarding
obtaining additional financing in connection with a possible
proceeding under Chapter 11 of the Bankruptcy Code.
UNITED CORE: Case Summary & 3 Largest Unsecured Creditors
---------------------------------------------------------
Debtor: United Core, Inc
4400 Homerlee Avenue
East Chicago, IN 46312
Bankruptcy Case No.: 10-23135
Chapter 11 Petition Date: July 2, 2010
Court: U.S. Bankruptcy Court
Northern District of Indiana (Hammond Division)
Judge: J. Philip Klingeberger
Debtor's Counsel: Rosalind G. Parr(JLS), Esq.
105 W. 86th Avenue
Merrillville, IN 46410
Tel: (219) 756-3316
Fax: (219) 756-2613
E-mail: nwibankruptcy@yahoo.com
Estimated Assets: $0 to $50,000
Estimated Debts: $1,000,001 to $10,000,000
A copy of the Debtor's list of 3 largest unsecured creditors
filed together with the petition is available for free
at http://bankrupt.com/misc/innb10-23135.pdf
The petition was signed by Ruben Sanchez, president.
U.S. AEROSPACE: Inks Cooperation Agreement With Antonov Company
---------------------------------------------------------------
U.S. Aerospace Inc. entered into a Strategic Cooperation Agreement
with Antonov Company, a state-owned Ukraine company, providing
for:
* Participation in the KC-X Tanker Modernization Program for
the U.S. Air Force;
* Bidding for projects to the U.S. Department of Defense, U.S.
Air Force, and licensed U.S. defense contractors
* Sale of Antonov aircraft, products and services in the United
States
Under the terms of the agreement, Antonov will be responsible for
design, construction and manufacture of aircraft. The company
will be responsible for coordinating the bidding process,
negotiating and contracting with customers, and coordinating with
defense sub-contractors for specialized systems.
The agreement provides that it will be interpreted in full
compliance with all applicable laws, including ITAR, and would be
subject to termination if no contracts were awarded on any of the
projects within five years. The company also entered into a
Confidentiality Agreement.
On July 1, 2010, the company entered into an Agreement and Plan of
Merger, pursuant to which we agreed to issue to American Defense
Invesments, LLC and TUSA Acquisition Corporation an aggregate of
653,516 shares of Series E Convertible Preferred Stock, each of
which is convertible into 100 shares of the company's common
stock, and votes together with the common stock as a single class
on an as-converted basis, to acquire their company and its
relationships with Antonov and associated goodwill. Additionally,
the Preferred stock has non-dilution protection for subsequent
issuances of common stock, including any conversation of currently
outstanding warrants and convertible debt.
About U.S. Aerospace, Inc.
U.S. Aerospace, Inc. -- http://www.USAerospace.com-- is a
publicly traded aerospace and defense contractor based in Southern
California. The Company supplies aircraft assemblies, structural
components and highly-engineered, precision-machined details for
commercial and military aircraft.
* * *
The Company's balance sheet at March 31, 2010, showed $6.0 million
in total assets and $11.5 million in total liabilities, for a
stockholders' deficit of $5.4 million.
USG CORP: Directors Acquire Deferred Stock Units
------------------------------------------------
USG Corp. director Steven F. Leer disclosed that he acquired
1,828.525 deferred stock units in the company on June 30, 2010.
He now holds 31,707.3928 units in the aggregate.
Director Jose Armario disclosed that he acquired 1,625.3555
deferred stock units in the company on June 30, 2010. He now
holds 30,470.2857 units in the aggregate.
Each deferred stock unit represents the right to receive the value
of one share of common stock. The Deferred stock units become
payable in cash or shares of common stock, at the reporting
person's option, following the holder's termination of service as
a director.
USG Corporation, headquartered in Chicago, Illinois, is a leading
producer and distributor of building materials in the Unites
States, Canada and Mexico. The company manufactures and markets
gypsum wallboard and operates a specialty distribution business
that sells to professional contractors. It also manufactures
ceiling tiles and ceiling grids used primarily in commercial
applications. Revenues for the last 12 months through March 31,
2010, totaled approximately $3.1 billion.
* * *
As reported by the Troubled Company Reporter on June 28, 2010,
Moody's Investors Service downgraded USG Corporation's Corporate
Family Rating and Probability of Default Rating to Caa1 from B3.
In a related rating action Moody's downgraded the guaranteed
senior unsecured notes due 2014 to B2 from B1 and the other senior
unsecured debt to Caa2 from Caa1. The Speculative Grade Liquidity
rating remains SIGIL-3. The outlook is stable.
The downgrades result from weaker than previously anticipated
operating performance. Moody's believes that potential demand
increases for wallboard from North American new home construction
and repair and remodeling will not be adequate to generate
sufficient volumes and operating profits to cover USG's interest
expense over the intermediate term. Furthermore, the non-
residential construction end market, which accounts for about 30%
of USG's revenues, is expected to contract well into 2011.
USG CORP: Files 2009 Annual Report on Investment Plan
-----------------------------------------------------
USG Corporation filed with the Securities and Exchange Commission
an annual report on Form 11-K for the USG Corporation Investment
Plan (formerly USG Corporation Investment Plan for Salaried
Employees) for the year ended December 31, 2009. Net assets
available for benefits at December 31 total $597,187,028.
A full-text copy of the Investment Plan is available at no charge
at:
http://ResearchArchives.com/t/s?65f3
USG Corporation, headquartered in Chicago, Illinois, is a leading
producer and distributor of building materials in the Unites
States, Canada and Mexico. The company manufactures and markets
gypsum wallboard and operates a specialty distribution business
that sells to professional contractors. It also manufactures
ceiling tiles and ceiling grids used primarily in commercial
applications. Revenues for the last 12 months through March 31,
2010, totaled approximately $3.1 billion.
* * *
As reported by the Troubled Company Reporter on June 28, 2010,
Moody's Investors Service downgraded USG Corporation's Corporate
Family Rating and Probability of Default Rating to Caa1 from B3.
In a related rating action Moody's downgraded the guaranteed
senior unsecured notes due 2014 to B2 from B1 and the other senior
unsecured debt to Caa2 from Caa1. The Speculative Grade Liquidity
rating remains SIGIL-3. The outlook is stable.
The downgrades result from weaker than previously anticipated
operating performance. Moody's believes that potential demand
increases for wallboard from North American new home construction
and repair and remodeling will not be adequate to generate
sufficient volumes and operating profits to cover USG's interest
expense over the intermediate term. Furthermore, the non-
residential construction end market, which accounts for about 30%
of USG's revenues, is expected to contract well into 2011.
VALENCE TECHNOLOGY: Gets Non-Compliance Notice From NASDAQ
----------------------------------------------------------
Valence Technology Inc. received written notice from The NASDAQ
Stock Market indicating that the Company is not in compliance with
the $1.00 minimum bid price requirement for continued listing on
the NASDAQ Capital Market, as set forth in Listing Rule
5550(a)(2). The notice has no effect on the listing of the
Company's common stock at this time, and its common stock will
continue to trade on the NASDAQ Capital Market under the symbol
"VLNC."
The Company will be provided 180 calendar days, or until December
27, 2010, to regain compliance. To regain compliance, the bid
price of the Company's common stock must close at $1.00 or higher
for a minimum of 10 consecutive business days within the stated
180-day period. If the Company is not in compliance by December
27, 2010, the Company may be afforded a second 180 calendar day
grace period if it meets the NASDAQ Capital Market initial listing
criteria, as set forth in Listing Rule 5810(c)(3)(A). If it
otherwise meets the initial listing criteria, NASDAQ will notify
the Company that it has been granted an additional 180 calendar
day compliance period.
If the Company does not regain compliance within the allotted
compliance period(s), including any extensions that may be granted
by NASDAQ, the Company's common stock will be subject to delisting
from the NASDAQ Capital Market. The Company would then be
entitled to appeal the NASDAQ Staff's determination to a NASDAQ
Listing Qualifications Panel and request a hearing.
About Valence Technology
Austin, Texas-based Valence Technology, Inc. (NASDAQ: VLNC) --
http://www.valence.com/-- is a global leader in the development
of safe, long-life lithium iron magnesium phosphate energy storage
solutions and provides the enabling technology behind some of the
world's most innovative and environmentally friendly applications.
Valence Technology has its Research & Development Center in
Nevada, its Europe/Asia Pacific Sales office in Northern Ireland
and global fulfillment centers in North America and Europe.
PMB Helin Donovan LLP expressed substantial doubt about Valence
Technology Inc.'s ability as a going concern. The Company has
incurred operating losses each year since its inception in 1989
and had an accumulated deficit of $581 million as of March 31,
2010. For the fiscal years ended March 31, 2010, 2009, and 2008
the Company sustained net losses available to common stockholders
of $23.2 million, $21.4 million, and $19.6 million, respectively.
VEBLEN EAST: Case Summary & 20 Largest Unsecured Creditors
----------------------------------------------------------
Debtor: Veblen East Dairy Limited Partnership
10530 - 448th Avenue
Veblen, SD 57270
Bankruptcy Case No.: 10-10146
Chapter 11 Petition Date: July 2, 2010
Court: United States Bankruptcy Court
District of South Dakota (Northern (Aberdeen))
Judge: Charles L. Nail, Jr.
Debtor's Counsel: Thomas M. Tobin, Esq.
Tonner Tobin and King
P.O. Box 1456
Aberdeen, SD 57402-1456
Tel: (605) 225-1000
E-mail: ttk@nvc.net
Estimated Assets: $50,000,001 to $100,000,000
Estimated Debts: $50,000,001 to $100,000,000
The petition was signed by Steven Nerger, chief restructuring
officer.
Debtor's List of 20 Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
------ --------------- ------------
Hanul Law Office Loan $2,000,000
Attn James Park
2677 N Main Street
Ste 1070
Santa Ana, CA 92705
New Horizon Dairy Goods and services $782,517
Attn Jeff Stormo
P.O. Box 157
Veblen, SD 57270
Stockman's Supply Goods and services $628,948
Attn Rob Jameson
802 West Main Avenue
West Fargo, ND 58078
Farmers Elevator Inc. Goods and services $222,703
Mid-State Insulation Inc. Goods and services $179,462
Hydro Engineering Inc. Goods and services $103,186
Michaelson Farms Goods and services $91,404
Nutrition Physiology Goods and services $82,800
Elanco Animal Health Goods and services $78,020
Minnesota Select Sires Goods and services $77,764
Lookout Ridge Consulting Goods and services $68,530
Schumacher Sales Co. Inc. Goods and services $60,964
AG Processing Inc. Goods and services $59,311
Houston Engineering Inc. Goods and services $53,108
Butler Machinery Goods and services $48,449
Fargo Water Equipment Goods and services $41,086
Tank's Backhoe Service Goods and services $37,759
Paul's Electric Inc. Goods and services $37,634
Munson Lakes Goods and services $36,791
Economy Propane LLC Goods and services $31,507
Debtor-affiliate that filed separate Chapter 11 petition:
Petition
Debtor Case No. Date
------ -------- ----
Veblen West Dairy, LLP 10-10071 04/07/10
VISTEON CORP: Holders of 60% of Debt to Cast "No" Vote on Plan
--------------------------------------------------------------
Steven Church at Bloomberg News reports that creditors who hold at
least 60% of the $167 million debt owed mainly to Visteon Corp.'s
suppliers will vote against the plan, according to a person
familiar with the tally, who declined to be identified because the
information isn't public.
The source told Bloomberg three distressed-debt investors that
hold about $20 million in supplier claims have collected pledges
to vote no from creditors with at least 60% of the so-called trade
debt. Bloomberg says the source has been involved in canvassing
creditors about their votes.
The Bloomberg report named the three distressed-debt investors --
Fulcrum Capital Holdings LLC, based in Austin, Texas; Hain Capital
Group LLC of Rutherford, New Jersey; and Liquidity Solutions Inc.,
of Hackensack, New Jersey.
Visteon's reorganization plan has divided creditors owed at least
$2.8 billion:
-- Bondholders who are sponsoring the plan would own 95% of
reorganized Visteon;
-- Current shareholders getting the remaining 5%.
-- General unsecured creditors, including the suppliers,
would be paid about half what they are owed.
The official committee of unsecured creditors supports the current
plan.
According to Bloomberg, Martin Bienenstock, Esq., who represents a
group of Visteon shareholders who also oppose the plan, said, "A
rejection by the trade claims could stop the plan cold."
Bloomberg also relates Creditors Committee attorney Robert Stark,
Esq., said he was skeptical that the three distressed-debt
investors could deliver the no votes. "In my experience, most
trade creditors are not hedge funds," Mr. Stark said. "If they
can get a cash distribution, they will take it."
According to Mr. Bienenstock and Paul Silverstein, Esq., the
lawyer representing the three distressed-debt investors, explained
that trade creditors hold a key position in the bankruptcy case,
even though their claims are much smaller than the $870 million
owed to bondholders and $1.63 billion owed to lenders. A no vote
by suppliers may cause Visteon's reorganization plan to violate
the U.S. Bankruptcy Code in as many as two ways, according to
Messrs. Bienenstock and Silverstein.
Bloomberg reports Mr. Silverstien said he has been told by
creditors that at least 33% of the general unsecured debt, which
is mostly owed to suppliers, will vote against the plan. Mr.
Silverstein said if more than 33% of the suppliers reject the plan
and shareholders vote in favor, Visteon's reorganization proposal
may be in violation of a section of the U.S. Bankruptcy Code known
as the absolute priority rule. Under that rule, shareholders
can't recover anything unless unsecured creditors like the
suppliers are either paid in full, or vote in favor of the
reorganization.
Bloomberg says Marc Kieselstein, Esq., an attorney for Visteon,
declined to comment.
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: Court Sets Plan-Related Discovery Schedule
--------------------------------------------------------
Visteon Corporation and its debtor affiliates have won Bankruptcy
Court approval to begin soliciting votes from eligible
stakeholders on their Revised Fourth Amended Plan of
Reorganization dated June 24, 2010.
Judge Christopher S. Sontchi of the U.S. Bankruptcy Court for the
District of Delaware approved the adequacy of the Disclosure
Statement explaining the Plan pursuant to Section 1125 of the
Bankruptcy Code. He entered his written ruling on the matter on
June 28.
The consideration of the Disclosure Statement was originally
scheduled in January 2010, but has been adjourned several times,
the last adjournment being set for June 25.
The Disclosure Statement described and detailed the Debtors'
Toggle Plan. Toggle SubPlan A is the Rights Offering Plan where
certain bondholders would have the opportunity to take control of
95% of Visteon if they are able to raise a $1.25 billion infusion
for the Company through a rights offering. Under SubPlan A, the
remaining 5% of the Company would go to the other bondholders.
Toggle SubPlan B or the Claims Conversion Plan would be tapped if
the bondholders failed to raise the $1.25 billion funding. Under
SubPlan B, 85% of Visteon's equity would go to the secured term
lenders and the remaining 15% would go to the unsecured
bondholders.
Moreover, the latest version of the Amended Plan entitles
shareholders to buy up to 2% of equity stake in Visteon and
warrants for an additional 3%, Dow Jones Bankruptcy Review points
out. Previous versions of the Plan leaves nothing for
shareholders.
The Court overruled objections from creditors and shareholders to
the Disclosure Statement, which asserted that Visteon failed to
provide adequate information with regards to its valuation.
Visteon's secured lenders and shareholders have opposed the
Toggle Plan, asserting that it is tied to fees -- that could
reach tens of millions of dollars -- being afforded to the
bondholders who'll be raising the funding for the rights
offering. The lenders have informed the Court that they can come
up with a similar plan without the concomitant fees.
"We're headed to litigation and I'm aware of that," Bloomberg
News quoted Judge Sontchi as saying.
The Court has also approved the described solicitation materials,
including the form of the ballots, that will be distributed to
creditors entitled to vote on the Plan.
Moreover, the proposed plan solicitation, voting and tabulation
procedures are approved by the Court.
Only Holders of Class E Term Loan Facility Claims, Class F 7.00%
and 8.25% Senior Notes Claims, Class G 12.25% Senior Notes
Claims, Class H General Unsecured Claims and Class J Interests in
Visteon Corp. are entitle to vote to accept or reject the Plan.
In order for votes to be counted, each holder of a claim or
interest in the Voting Classes must properly complete, execute
and deliver its ballot to be actually received by the Debtors'
claims and solicitation agent on or before July 30, 2010.
Judge Sontchi established June 25, 2010 as the record date for
determining: (i) the holders of Claims and Interests entitled to
vote to receive a copy of the Solicitation Package; (ii) the
holders of Claims and Interest entitled to vote on the Plan; and
(iii) whether Claims and Interests have been properly transferred
to an assignee pursuant to Rule 3001(e) of the Federal Rules of
Bankruptcy Procedure.
To the extent that each unsecured Class of Claims and Interests
votes to accept the Plan, Judge Sontchi reserves August 25, 2010,
at 9:30 a.m., Prevailing Eastern Time, as the date to commence a
confirmation hearing on the Plan.
To the extent that any unsecured Class of Claims or Interests
does not vote to accept the Plan, Judge Sontchi is inclined to
commence the Confirmation Hearing on September 28, 2010, at 9:30
a.m. Prevailing Eastern Time.
Any objection to confirmation of the Plan must be filed no later
than July 30, 2010.
A full-text copy of the Visteon Disclosure Statement Order, along
with the ballot forms, plan-related notices and the plan
solicitation procedures, is available for free at:
http://www.bankrupt.com/misc/Visteon_DSOrder.pdf
After the entry of the Disclosure Statement Order, the Debtors
delivered to the Court on June 30, 2010, an amended Disclosure
Statement dated June 28, 2010, which contains the order approving
the Disclosure Statement. A full-text copy of the Disclosure
Statement containing the Disclosure Statement Order is available
for free at http://bankrupt.com/misc/Visteon_4thAmendedDS628.pdf
Plan-Related Discovery Schedule
As set forth on the record at the June 25 hearing, certain
discovery deadlines were discussed in connection with the
Confirmation Hearing.
In connection with that development, at the Debtors' behest,
Judge Sontchi entered a scheduling order setting deadlines in
connection with the confirmation of the Fourth Amended Plan:
Event Date
----- --------
Deadline to serve fact discovery 06/30/10
Deadline to serve responses and objections
to written fact discovery requests 07/02/10
Deadline to meet and confer on disputes of
scope of document productions and e-discovery 07/07/10
Deadline to raise document discovery disputes
with the Court 07/09/10
Deadline to serve responses and objections
to interrogatories 07/09/10
Deadline to meet and confer on disputes
regarding responses to interrogatories 07/14/10
Deadline to raise disputes over
interrogatories with the Court 07/16/10
Deadline for completion of doc production 07/27/10
Deadline to identify deponents 08/06/10
Fact witness depositions 08/02/10-
08/25/10
Deadline to serve requests for admission 08/27/10
Deadline for expert discovery/reports 08/27/10
Deadline for rebuttal expert disclosures/report 09/03/10
Deadline to respond to requests for admission 09/10/10
Deadline to take and complete
expert witness depositions 09/07/10-
09/16/10
Deadline to file Pre-trial disclosures 09/17/10
Deadline to file motions in limine 09/20/10
Deadline for objections to trial witness
and exhibit designations 09/21/10
Deadline to file objections and
fairness designations 09/22/10
Pretrial briefs and expert reports to be filed 09/22/10
Deadline to file responses to motions in limine 09/23/10
Pretrial conference 09/27/10
Confirmation Hearing 09/28/10
Discovery Request Notices Served
The Debtors and the Ad Hoc Equity Committee, in separate filings,
subsequently notified the Court that they have served
interrogatories and documents requests on various parties.
Specifically, the Debtors served on June 30, 2010:
-- a first set of interrogatories and document requests on
Wilmington Trust FB and the Ad Hoc Committee of Trade
Creditors; and
-- a second set of interrogatories and document requests on the
Ad Hoc Committee.
The Ad Hoc Equity Committee, for its part, served on the Debtors
two sets of supplemental requests for production of documents:
the first set was served on June 17 and the second set was served
on June 30.
The Ad Hoc Equity Committee also served on June 30:
-- a first set of interrogatories to Liverpool Limited
Partnership, an Ad Hoc Group of Noteholders, CQS
Convertible and Quantitative Strategies Master Fund
Limited, CQS Directional Opportunities Master Fund Limited,
Deutsche Bank Securities Inc., Elliot International L.P.,
Kivu Investment Fund Limited, Monarch Master Funding Ltd.,
Oak Hill Advisors L.P., Solus Alternative Asset Management
LP, and Goldman Sachs & Co.; and
-- separate interrogatories and requests for production of
documents on the Official Committee of Unsecured Creditors
and Wilmington Trust FSB.
The Notices did not list the type of information or documents the
Debtors and the Ad Hoc Equity Committee seek access to. The
Notices also made no mention of the list of interrogatories
directed to the parties served.
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: Court Won't Stay Plan Agreements Pending Appeal
-------------------------------------------------------------
Bankruptcy Judge Christopher Sontchi heard the arguments on the
motion of Wilmington Trust FSB for a stay pending appeal of the
Court order authorizing Visteon Corp. and its units to enter into
the Plan Support Agreement, the Equity Commitment Agreement and
the Cash Recovery Backstop Agreement.
Judge Sontchi subsequently entered an oral ruling, denying the
Motion for Stay Pending Appeal.
Prior to the entry of the Court's oral ruling, the Working Group
of the Informal Noteholder Committee, as substantial holders of
the 7.00%, 8.25%, and 12.25% senior notes issued by Debtor
Visteon Corporation and as among the lead investors under the
Equity Commitment Agreement, expressed its opposition to the
Motion for Stay Pending Appeal. The Working Group asserted that
the request is another attempt by the Term Loan Lenders to
frustrate the Debtors' ability to peacefully move forward with a
plan of reorganization that provides the Term Loan Lenders with
the prospect of being paid in full in cash or toggling to the
exact same deal that they have already endorsed. At a minimum,
the Working Group averred, the Stay Motion fails because the Term
Loan Lenders cannot show they are being irreparably harmed.
The Court signed the Revised Form of Order submitted by the
Debtors on June 28, 2010.
Wilmington Trust Files Statement of Issues
In a separate filing and in connection with its Appeal,
Wilmington Trust FSB, as administrative agent under the Debtors'
senior secured term loan facility, wants the U.S. District Court
for the District of Delaware to review whether the Bankruptcy
Court erred in:
(1) ruling that the Plan Support Agreement and Equity
Commitment Agreement met the requirements of Section
363(b) of the Bankruptcy Code, and that the Debtors are
authorized to enter into those agreements; and
(2) ordering that the fees payable, and expenses reimbursable
by the Debtors under the Equity Commitment Agreement were
allowable as administrative expenses.
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: Wants Plan Exclusivity Until December 15
------------------------------------------------------
Visteon Corp. and its units ask the Court to extend their
exclusive periods to file a Chapter 11 plan of reorganization
through October 15, 2010, and to solicit acceptances of that plan
through December 15, 2010.
The recent events in the Debtors' cases clearly establish cause
for a further extension of the Exclusivity Periods, James E.
O'Neill, Esq., at Pachulski Stang Ziehl & Jones LLP, in
Wilmington, Delaware -- joneill@pszjlaw.com -- relates, counsel
to the Debtors.
Mr. O'Neill cites that the Court has approved, after a two-day
evidentiary hearing, the Debtors' entry into various agreements
related to their proposed Toggle Chapter 11 Plan. The Plan-
related agreements, include an equity commitment agreement and a
plan support agreement, by which a group of the Debtors'
bondholders have agreed to provide for a $1.25 billion capital
infusion on which the Toggle Sub-Plan A of the Debtors is based.
The Court has also approved the Debtors' Disclosure Statement for
the Toggle Plan, which has the support of more than two-thirds in
the amount of the Plan's bondholder classes and the Official
Committee of Unsecured Creditors, he adds.
The Debtors now are commencing the process to solicit votes on
their Plan. Judge Sontchi has also set a confirmation hearing
schedule to allow for a 10-day contested valuation hearing to
begin on September 28, 2010, and has reserved August 25, 2010 to
commence a potentially truncated confirmation hearing if all
impaired classes vote in favor of the Plan.
"Having maintained their exclusivity periods to date, the Debtors
have shepherded these Chapter 11 cases to the cusp of a
potentially consensual confirmation of their plan, which now
offers a recovery to current Visteon's equity holders if the
equity class votes in favor of the plan," Mr. O'Neill maintains.
Given the groundwork now laid, maintenance of the Debtors'
exclusivity to proceed with confirmation of their Toggle Plan
makes eminent sense, Mr. O'Neill says. "To end the Debtors'
exclusivity at this stage and open the process to the plan
proposals endorsed by secured creditors and equity
holders would only be a waste of judicial and estate resources."
The Debtors tell the Court that termination of their Exclusivity
would only disrupt their business relationships with their
customers by injecting uncertainty regarding the trajectory of
their bankruptcy cases.
The Court is set to convene a hearing on July 15, 2010, to
consider the Debtors' request. Pursuant to Rule 9006-2 of the
Local Rule of Bankruptcy Practice and Procedure of the U.S.
Bankruptcy Court for the District of Delaware, the Debtors'
exclusive plan filing period is automatically extend until the
conclusion of that hearing.
Objection to the Exclusivity Extension Motion may be filed on or
before July 8.
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)
WAPECO, LTD.: Voluntary Chapter 11 Case Summary
-----------------------------------------------
Debtor: WAPECO, LTD.
dba Olde Towne Square Shopping Center
13505 Montfort Place, Suite 200
Dallas, TX 75020
Bankruptcy Case No.: 10-44361
Chapter 11 Petition Date: July 2, 2010
Court: U.S. Bankruptcy Court
Northern District of Texas (Ft. Worth)
Judge: D. Michael Lynn
Debtor's Counsel: Clifford Franklin McMaster, Esq.
309 W. 7th Street, No. 1400
Fort Worth, TX 76102
Tel: (817) 335-8080
Fax: (817) 429-3371
E-mail: cfmcmaster@sbcglobal.net
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
The Debtor did not file a list of creditors together with its
petition.
The petition was signed by Alden E. Wagner, Jr., manager.
WARSAW BUILDING: Case Summary & 18 Largest Unsecured Creditors
--------------------------------------------------------------
Debtor: Warsaw Building Center, Inc.
28790 Commercial Avenue
Warsaw, MO 65355
Bankruptcy Case No.: 10-21425
Chapter 11 Petition Date: July 1, 2010
Court: U.S. Bankruptcy Court
Western District of Missouri (Jefferson City)
Judge: Dennis R. Dow
Debtor's Counsel: William P. Nacy, Esq.
Hanrahan, Nacy & Mathers, P.C.
522 E. Capitol Avenue
Jefferson City, Mo 65101
Tel: (573) 635-0282
Fax: (573) 556-6340
E-mail: pete.nacy@mchsi.com
Estimated Assets: $0 to $50,000
Estimated Debts: $1,000,001 to $10,000,000
A copy of the Debtor's list of 18 largest unsecured
creditors filed together with the petition is available for
free at http://bankrupt.com/misc/mowb10-21425.pdf
The petition was signed by Thurman Jay Kuykendall, CEO.
Debtor-affiliate filing separate Chapter 11 petition:
Entity Case No. Petition Date
------ -------- -------------
Kuykendall Enterprises, L.L.C. -- 07/01/10
WASHINGTON MUTUAL: Equity Committee Insists on Docs. From JPM
-------------------------------------------------------------
The Official Committee of Equity Security Holders for Washington
Mutual Inc.'s Chapter 11 case complains that the request of
JPMorgan Chase Bank, N.A., for the Court's issuance a protective
order -- to relieve JPMorgan of any obligation to respond to the
pending formal and informal discovery requests -- is not
justified.
As previously reported, the Equity Committee sought to pursue a
further investigation on JPMorgan pursuant to Rule 2004 of the
Federal Rules of Bankruptcy Procedures, in light of the looming
schedule for the confirmation of the Debtors' Joint Chapter 11
Plan of Reorganization, as amended.
The investigation will center on the failure of Washington Mutual
Bank in September 2008. Through a transaction with the Federal
Deposit Insurance Corporation, as receiver of WMB, JPMorgan
bought WMB for a fair value of $1.9 billion.
JPMorgan insisted that that the proposed Discovery is more than
what it should be required to provide for Plan confirmation
purposes, and that it has cooperated with the Equity Committee to
reach a resolution on all discovery issues.
"[JPMorgan] has apparently succeeded in avoiding discovery in all
lawsuits that have been filed to date over its acquisition of
WMB," William P. Bowden, Esq., at Ashby & Geddes, P.A., in
Wilmington, Delaware, says, on behalf of the Equity Committee.
"There is no justification for [JPMorgan's] claim that it should,
once again, be entitled to avoid having to conduct a reasonable
search for documents in its own files."
Similarly, a consortium of holders of interests subject to
treatment under Class 19 of the Plan alleges that JPMorgan seeks
to avoid its obligations to respond to Discovery. "[JPMorgan]
has the obligation to identify the location of responsive
documents within its possession, including the custodians, not
the requesting party," Kathleen Campbell Davis, Esq., at Campbell
& Levine LLC, in Wilmington, Delaware, says, citing Graske v.
Auto-Owners Ins. Co. Accordingly, the TPS Consortium asks the
Court to compel JPMorgan to produce all non-privileged documents
responsive to the Discovery Requests.
About Washington Mutual
Based in Seattle, Washington, Washington Mutual Inc. --
http://www.wamu.com/-- is a holding company for Washington Mutual
Bank as well as numerous non-bank subsidiaries. The Company
operates in four segments: the Retail Banking Group, which
operates a retail bank network of 2,257 stores in California,
Florida, Texas, New York, Washington, Illinois, Oregon, New
Jersey, Georgia, Arizona, Colorado, Nevada, Utah, Idaho and
Connecticut; the Card Services Group, which operates a nationwide
credit card lending business; the Commercial Group, which conducts
a multi-family and commercial real estate lending business in
selected markets, and the Home Loans Group, which engages in
nationwide single-family residential real estate lending,
servicing and capital markets activities.
Washington Mutual Bank was taken over September 25 by U.S.
government regulators. The next day, WaMu and its affiliate, WMI
Investment Corp., filed separate petitions for Chapter 11 relief
(Bankr. D. Del. 08-12229 and 08-12228, respectively). Wamu owns
100% of the equity in WMI Investment. Weil Gotshal & Manges
represents the Debtors as counsel. When WaMu filed for protection
from its creditors, it listed assets of $32,896,605,516 and debts
of $8,167,022,695. WMI Investment listed assets of $500,000,000
to $1,000,000,000 with zero debts.
Peter Calamari, Esq., and David Elsberg, Esq., at Quinn Emanuel
Urquhart Oliver & Hedges, LLP, served as legal counsel to WMI with
responsibility for the litigation. Brian Rosen, Esq., at Weil,
Gotshal & Manges LLP served as legal counsel to WMI with
responsibility for the Chapter 11 case.
Bankruptcy Creditors' Service Inc. publishes Washington Mutual
Bankruptcy News. The newsletter tracks the Chapter 11 proceedings
of Washington Mutual Inc. (http://bankrupt.com/newsstand/or
215/945-7000).
WASHINGTON MUTUAL: Files Fifth Amended Plan & Disclosure Statement
------------------------------------------------------------------
Washington Mutual, Inc., and WMI Investment Corp. delivered to
Judge Mary F. Walrath a Fifth Amended Chapter 11 Plan of
Reorganization and Disclosure Statement dated July 1, 2010.
Revisions under the Fifth Amended Plan consist of the exclusion
of WaMu Entities Marion Insurance Company, Washington Mutual
Finance Group, LLC, Soundbay Leasing LLC, and WMGW Delaware
Holdings LLC from selling, transferring and assigning certain
assets to JPMorgan Chase Bank, N.A., under the Global Settlement
Agreement, according to WaMu President and Chief Executive
Officer William C. Kosturos.
The Global Settlement Agreement -- which is the focal point of
the Plan -- was reached among WaMu; JPMorgan Chase, as the
acquirer of Washington Mutual Bank; and the Federal Deposit
Insurance Corporation, as receiver of WMB. The Global Settlement
calls for the resolution of, among other things, claims under
disputed accounts with respect to the demise of WMB in September
2008.
Claims Distribution
The Fifth Amended Plan provides that the Liquidating Trustee, as
tasked to distribute to the holders of Allowed Claims on account
of their Liquidating Trust Interests, will not be required to
make a distribution from the Liquidating Trust Assets pursuant to
the Plan if the aggregate net amount of unrestricted cash
available for distribution would make the distribution
impracticable, but only so long as the aggregate amount is less
than $25 million. The Liquidating Trustee may decide to forego
the first quarterly distribution to those holders of Liquidating
Trust Interests. In this case, distribution will be made to
Interest Holders after the Liquidating Trustee is
administratively prepared to do so.
Any disagreement with the priorities or distributions in the
Subordination Model will be raised prior to, and decided at, the
hearing to confirm the Plan. All issues with respect to
contractual subordination not resolved at the Confirmation
Hearing will be governed pursuant to the Subordination Model.
Plan Voting
With respect to voting to accept or reject the Plan, the Ballot
to be submitted by each holder of a Senior Notes Claim will
request that the Holder indicate the percentage of Reorganized
Common Stock it would elect to receive on account of
subordination and pay-over rights, as defined under the Plan, if
they are held to be applicable and exercisable separately.
Voting on the Plan or exercising an election will not constitute
or be deemed a waiver of any rights or remedies the holder or the
Indenture Trustee have with respect to subordination rights
arising under or with respect to the Senior Notes, Senior
Subordinated Notes, CCB Guarantees, PIERS Common Securities and
PIERS Preferred Securities, all of which rights and remedies will
be controlled and governed by the Indentures and Guarantee
Agreements. Nothing in the Plan will amend, modify or impair the
rights and remedies in any manner or fashion.
Stock Election Notice Date
Five days prior to the Stock Election Notice under the Plan -- to
be established by the Bankruptcy Court in the Disclosure
Statement order -- the Debtors will file with the Bankruptcy
Court a notice that discloses, on a Class-by-Class basis, the
percentage of Reorganized Common Stock elected by Classes 2, 3,
12, 14, 15 and 16 as a result of the right of election as set
forth under the Plan.
With respect to the distribution of Subscription Rights to
holders of Allowed PIERS Claims relating to the PIERS Preferred
Securities, Pro Rata Share means the proportion that the face
value of that holder's claim bears to the aggregate face value of
the PIERS Preferred Securities. Accordingly, only holders having
Allowed PIERS Claims in an amount equal to or greater than
$15,313,483 are eligible to participate in the Rights Offering.
Thus, only holders of PIERS Claims relating to the PIERS
Preferred Securities having claims corresponding to a face amount
equal to or greater than $23,000,000 of Preferred Securities are
eligible to participate in the Rights Offering.
As soon as practicable after initial distributions are made
pursuant to the Plan, and without the need for any consent or
approval, Reorganized WaMu will cause the dissolution of
Washington Mutual Capital Trust 2001, as defined under the Plan.
Litigation Updates
Under the Fifth Amended Plan, the Debtors also apprised the Court
of the status, as of July 1, 2010, of, among others, consolidated
actions relating to the Employee Retirement Income Security Act
of 1974; class action lawsuits filed by Robert Alexander and
James Reed, Denise Cassese, George Rush and Richard Schroer; and
causes of action filed against the Debtors and their affiliates
by American Nat'l Ins. Co., Buus, Inc., Michael Willingham and
Esopus Creek Value L.P., and Broadbill Investment Corp. The
Fifth Amended Plan also disclosed amended tax claim amounts filed
by the Internal Revenue Service and the California Franchise Tax
Board. The Debtors also believe that certain of the proofs of
claim as disclosed in the Global Settlement Agreement "may be
duplicative."
Release Provisions
The Fifth Amended Plan contains a fresh provision noting that the
Plan or the confirmation order will:
(1) release, or is intended to release, any non-Debtor,
including any non-Debtor Entity that may be a Released
Party or a Related Person, in connection with any legal
action or claim brought by the U.S. Securities and
Exchange Commission; or
(2) prejudice the rights of any non-Debtor Entity to defend or
otherwise contest any such legal action or claim.
Nothing in the Plan or the confirmation order will release, or is
intended to release, any non-Debtor, including any non-Debtor
Entity that may be a Released Party or a Related Person from any
liability as a fiduciary of the Pension Plans, under any law,
government policy or regulatory provision, to the extent that (i)
the Debtors' pension plans are terminated from and after the
Effective Date of the Plan; and (ii) the Pension Plans are
underfunded as of the Effective Date of the Plan.
In addition, the Plan will enjoin or preclude the Pension Benefit
Guaranty Corporation from enforcing liability against non-Debtor
Entities during the applicable statute of limitations period set
forth in Section 1303 of the U.S. Labor Code.
Financial Information and Projections
The Debtors, in their Fifth Amended Plan, updated their
projections as of March 31, 2010. No modifications other than
updates to actual results through May 31, 2010, have been made,
according to the Debtors.
As of May 31, 2010, the Debtors had reserves of $242 million
against $380 million in projected paid losses. The provision is
generally seen as a reduction of operating expenses that as
claims get paid out, the reserves would get extinguished. Over
the projection period, the Debtors will incur additional
provisions of $138 million -- $380 million less $242 million,
further adjusted for actual results -- under the assumption that
all claims that are paid would be reserved prior to payment.
The extinguishment of an intercompany loan of $11.9 million was
provided by WaMu to its insurance captive in December 2008, will
be characterized as a capital contribution effective prior to
confirmation of the Plan.
The Debtors' updated operating assumptions assume that the Plan
will be confirmed and consummated by October 15, 2010, as opposed
to the previously forecasted July 30, 2010 Plan confirmation and
consummation date.
The hearing to consider the adequacy of the Disclosure Statement
is currently slated for July 8, 2010.
Full-text clean copies as well as blacklined versions of the WaMu
Fifth Amended Plan and Disclosure Statement are available for
free at:
http://bankrupt.com/misc/WaMu_5thAmendedPlan.pdf
http://bankrupt.com/misc/WaMu_Blacklined5thAmendedPlan.pdf
http://bankrupt.com/misc/WaMu_5thAmendedDS.pdf
http://bankrupt.com/misc/WaMu_Blacklined5thAmendedDS.pdf
About Washington Mutual
Based in Seattle, Washington, Washington Mutual Inc. --
http://www.wamu.com/-- is a holding company for Washington Mutual
Bank as well as numerous non-bank subsidiaries. The Company
operates in four segments: the Retail Banking Group, which
operates a retail bank network of 2,257 stores in California,
Florida, Texas, New York, Washington, Illinois, Oregon, New
Jersey, Georgia, Arizona, Colorado, Nevada, Utah, Idaho and
Connecticut; the Card Services Group, which operates a nationwide
credit card lending business; the Commercial Group, which conducts
a multi-family and commercial real estate lending business in
selected markets, and the Home Loans Group, which engages in
nationwide single-family residential real estate lending,
servicing and capital markets activities.
Washington Mutual Bank was taken over September 25 by U.S.
government regulators. The next day, WaMu and its affiliate, WMI
Investment Corp., filed separate petitions for Chapter 11 relief
(Bankr. D. Del. 08-12229 and 08-12228, respectively). Wamu owns
100% of the equity in WMI Investment. Weil Gotshal & Manges
represents the Debtors as counsel. When WaMu filed for protection
from its creditors, it listed assets of $32,896,605,516 and debts
of $8,167,022,695. WMI Investment listed assets of $500,000,000
to $1,000,000,000 with zero debts.
Peter Calamari, Esq., and David Elsberg, Esq., at Quinn Emanuel
Urquhart Oliver & Hedges, LLP, served as legal counsel to WMI with
responsibility for the litigation. Brian Rosen, Esq., at Weil,
Gotshal & Manges LLP served as legal counsel to WMI with
responsibility for the Chapter 11 case.
Bankruptcy Creditors' Service Inc. publishes Washington Mutual
Bankruptcy News. The newsletter tracks the Chapter 11 proceedings
of Washington Mutual Inc. (http://bankrupt.com/newsstand/or
215/945-7000).
WASHINGTON MUTUAL: Wins Approval of Lumbermens Settlement
---------------------------------------------------------
Debtors Washington Mutual, Inc., and WMI Investment Corp. sought
and received Court's permission to enter into a settlement with
(i) JPMorgan Chase Bank, N.A.; and (ii) Lumbermens Mutual Casualty
Company, American Motorists Insurance Company, American
Manufacturing Mutual Insurance Company and American Protection
Insurance Company, collectively known as Lumbermens, whereby
JPMorgan will assume all liabilities and obligations of the
Debtors and their non-debtor affiliates to Lumbermens under
certain insurance agreements.
Lumbermens provided workers' compensation and employees'
liability, commercial general liability and business automobile
liability insurance to WaMu and its affiliates, including
Washington Mutual Bank, through various policies of insurance for
the period between May 12, 1986 and June 10, 2003. Lumbermens
issued the Policies pursuant to various annual program
agreements. The vast majority of the employees covered by the
Insurance Agreements were employees of WMB and its subsidiaries,
substantially all of whom transferred employment to JPMorgan on
September 25, 2008.
In light of the transition of employment, the Debtors entered into
a settlement agreement whereby JPMorgan has agreed to assume all
of the liabilities and obligations of WaMu and its affiliates to
Lumbermens under the Insurance Agreements, including those not
directly related to WMB. In turn, WaMu, on behalf of itself and
its non-direct and indirect subsidiaries will assign to JPMorgan
all of their rights, title and interest in a Return Premium, an
Escrow, Subrogation Recoveries and Policy Rights now owing or
which may become due to them with respect to the Policies.
As of May 7, 2010, no amounts are outstanding under the Policies.
In addition, pursuant to the Settlement Agreement, the parties
agree that:
(1) JPMorgan will enter into a Policy Assumption Agreement
with Lumbermens. As of the consummation date of the
Policy Assumption Agreement, JPMorgan is deemed to have
amended its Claim No. 2343 to withdraw its claims related
to the Insurance Agreements, the Escrow and the existing
letters of credit issued on behalf of JPMorgan to
Lumbermens in connection with the Insurance Agreements.
(2) As of the Consummation Date, JPMorgan is deemed to have
released and forever discharged the Debtors, the Debtors'
estates and the non-debtor affiliates from any liability
for any and all claims relating to the Insurance
Agreements, the Existing Letters of Credit, the Return
Premium, the Escrow, the Subrogation Recoveries or the
Policy Rights.
(3) Nothing in the Settlement Agreement will release or
discharge any of the claims and causes of action asserted
In re JPMorgan Chase Bank, N.A. v. Washington Mutual,
Inc., et al.; Washington Mutual, Inc., et al. v. JPMorgan
Chase Bank, N.A., et al.; or Washington Mutual, Inc., et
al. v. Federal Deposit Insurance Corporation, et al.
Mark D. Collins, Esq., at Richards, Layton & Finger, P.A., in
Wilmington, Delaware, asserts that absent approval of the
Settlement Agreement, the Debtors will remain jointly and
severally liable for all amounts due pursuant to the Insurance
Agreements, including losses, premiums and indemnification
expenses.
Approval of the Settlement Agreement will extinguish the
obligations and liabilities of the Debtors and their non-debtor
affiliates to Lumbermens, he points out.
More importantly, the Settlement Agreement will reduce the
Debtors' outstanding obligations and liabilities and protect the
estates' assets, Mr. Collins maintains.
About Washington Mutual
Based in Seattle, Washington, Washington Mutual Inc. --
http://www.wamu.com/-- is a holding company for Washington Mutual
Bank as well as numerous non-bank subsidiaries. The Company
operates in four segments: the Retail Banking Group, which
operates a retail bank network of 2,257 stores in California,
Florida, Texas, New York, Washington, Illinois, Oregon, New
Jersey, Georgia, Arizona, Colorado, Nevada, Utah, Idaho and
Connecticut; the Card Services Group, which operates a nationwide
credit card lending business; the Commercial Group, which conducts
a multi-family and commercial real estate lending business in
selected markets, and the Home Loans Group, which engages in
nationwide single-family residential real estate lending,
servicing and capital markets activities.
Washington Mutual Bank was taken over September 25 by U.S.
government regulators. The next day, WaMu and its affiliate, WMI
Investment Corp., filed separate petitions for Chapter 11 relief
(Bankr. D. Del. 08-12229 and 08-12228, respectively). Wamu owns
100% of the equity in WMI Investment. Weil Gotshal & Manges
represents the Debtors as counsel. When WaMu filed for protection
from its creditors, it listed assets of $32,896,605,516 and debts
of $8,167,022,695. WMI Investment listed assets of $500,000,000
to $1,000,000,000 with zero debts.
Peter Calamari, Esq., and David Elsberg, Esq., at Quinn Emanuel
Urquhart Oliver & Hedges, LLP, served as legal counsel to WMI with
responsibility for the litigation. Brian Rosen, Esq., at Weil,
Gotshal & Manges LLP served as legal counsel to WMI with
responsibility for the Chapter 11 case.
Bankruptcy Creditors' Service Inc. publishes Washington Mutual
Bankruptcy News. The newsletter tracks the Chapter 11 proceedings
of Washington Mutual Inc. (http://bankrupt.com/newsstand/or
215/945-7000).
WATERFORD FUNDING: SEC Sues Founder for $145MM Fraudulent Offering
------------------------------------------------------------------
The Securities and Exchange Commission on July 2 announced the
filing of a complaint in federal district court against Travis L.
Wright, of Salt Lake City, Utah, based on his having carried out
an offering fraud in which he raised nearly $145 million from
approximately 175 investors. Mr. Wright sold these investors
promissory notes issued by Waterford Loan Fund, LLC, that were
purportedly secured by a lien on a trust that held all the assets
of the Fund.
The Fund and its affiliate Waterford Funding, LLC are currently
under the supervision of a Chapter 11 trustee, and their assets
are being liquidated for the benefit of creditors.
The complaint alleges that, in raising these funds, Mr. Wright
made numerous material misrepresentations to investors, including
the following: 1) he assured them that their funds would be used
only to make loans secured by commercial real estate, when in fact
he used their funds primarily for loans and investments having
nothing to do with real estate; 2) he represented to them that
their promissory notes were secured by interests in a trust, but
no such trust existed, and the notes were not secured; and 3) he
represented that Waterford would never lend more than 50% of the
value of the real estate in question. Mr. Wright also omitted to
disclose to investors 1) that he never obtained an appraisal or
valuation of real estate before lending investor funds against it;
and 2) that he was using investor funds to pay for a lavish
lifestyle for himself and his friends and family.
The Commission's complaint charges Wright with violations of
Sections 5(a), 5(c) and 17(a) of the Securities Act of 1933 and
Section 10(b) and 15(a) of the Exchange Act and Rule 10b-5
thereunder. The complaint seeks an injunction, disgorgement,
prejudgment interest and a civil penalty, and the issuance of an
order prohibiting Wright from offering, selling or soliciting the
sale of securities in a private or public offering, except for
purchases or sales of securities by him for a personal account
maintained at a broker or dealer registered with the Commission.
About Waterford Funding
Salt Lake City, Utah-based Waterford Loan Fund, LLC, and Waterford
Funding, LLC, filed Chapter 11 petitions on March 20, 2009 (Bankr.
D. Utah Case No. 09-22584). Waterford Loan listed assets of $1
million to $10 million and debts of $50 million to $100 million as
of the filing date.
Waterford Funding -- http://www.waterfordfunding.com/ -- claimed
to be specializing in solving the short-term cash flow problems of
new, early-stage and established commercial enterprises through
real- estate based loans.
WAYNE POWELL: Case Summary & 18 Largest Unsecured Creditors
-----------------------------------------------------------
Debtor: Wayne M. Powell
6610 New Ridge Ct
Cumming, GA 30041
Bankruptcy Case No.: 10-23000
Chapter 11 Petition Date: July 2, 2010
Court: U.S. Bankruptcy Court
Northern District of Georgia (Gainesville)
Judge: Robert Brizendine
Debtor's Counsel: Bob J. Phillips, Esq.
B. Phillips & Associates PC
327 Dahlonega Street, Suite 104
Cumming, GA 30040
Tel: (770) 205-1922
E-mail: bphill60@msn.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
According to the schedules, the Debtor says that assets total
$1,116,783 while debts total $1,587,348.
A copy of the Debtor's list of 18 largest unsecured
creditors filed together with the petition is available for
free at http://bankrupt.com/misc/ganb10-23000.pdf
The petition was signed by the Debtor.
WILLIAM MEYER: Case Summary & 20 Largest Unsecured Creditors
------------------------------------------------------------
Joint Debtors: William Robert Meyer
Cathy Ann Meyer
188 East C.R. 650 North
Springport, IN 47386
Bankruptcy Case No.: 10-10071
Chapter 11 Petition Date: July 2, 2010
Court: U.S. Bankruptcy Court
Southern District of Indiana (Indianapolis)
Judge: Basil H. Lorch III
Debtor's Counsel: Eric C. Redman, Esq.
Redman Ludwig PC
151 N Delaware Street, Suite 1106
Indianapolis, IN 46204
Tel: (317) 685-2426
E-mail: ksmith@redmanludwig.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
According to the schedules, the Debtors say that assets total
$1,150,403 while debts total $1,356,856.
A copy of the Debtors' list of 20 largest unsecured
creditors filed together with the petition is available
for free at http://bankrupt.com/misc/insb10-10071.pdf
The petition was signed by the Joint Debtors.
WORLDGATE COMMS: To Terminate Lease Contract With Tremont LLC
-------------------------------------------------------------
WorldGate Service Inc. provided written notice to Tremont LLC of
its election to terminate the lease effective September 27, 2010.
The lease provides for termination by either party upon ninety
days prior written notice of the party's intent to terminate the
lease. There were no termination penalties.
Starting April 1, 2010 under the lease, the base rent was $10,400
per month and the additional rent was $5,805 per month for
approximately 17,000 square feet of office space, each of which
were payable on the first day of the month and were subject to a
4% increase per year on each April 1st. Additional rent was
intended to constitute payment for WorldGate's proportionate share
of real estate taxes, utilities and other building operating
expenses. The term of the lease was month-to-month with a
commencement date of April 1, 2008. No material relationship
exists between WorldGate or any affiliate, director or officer of
WorldGate and 3190 Tremont LLC.
WorldGate has terminated the lease in anticipation of relocating
to new office space at Horizon II, 3800 Horizon Boulevard,
Bensalem, Pennsylvania, at the Horizon Corporate Center as more
fully described in the Company's Current Report on Form 8-K filed
with the Securities and Exchange Commission on March 25, 2010.
Trevose, Pa.-based Worldgate Communications, Inc. is a provider of
digital voice and video phone services and next generation video
phones. The Company designs and develops digital video phones
featuring real-time, two-way video. It also provides a turn-key
digital voice and video communication services platform supplying
complete back-end support services.
* * *
The Company's balance sheet at March 31, 2010, showed
$6,252,000 in assets and $7,275,000 of liabilities, for a
stockholders' deficit of $1,023,000
* Upcoming Meetings, Conferences and Seminars
---------------------------------------------
July 7-10, 2010
AMERICAN BANKRUPTCY INSTITUTE
Northeast Bankruptcy Conference
Ocean Edge Resort, Brewster, Massachusetts
Contact: 1-703-739-0800; http://www.abiworld.org/
July 14-17, 2010
AMERICAN BANKRUPTCY INSTITUTE
Southeast Bankruptcy Conference
The Ritz-Carlton Amelia Island, Amelia, Fla.
Contact: http://www.abiworld.org/
Aug. 3, 2010
AMERICAN BANKRUPTCY INSTITUTE
Atlanta Consumer Bankruptcy Skills Training
Georgia State Bar Building, Atlanta, Ga.
Contact: 1-703-739-0800; http://www.abiworld.org/
Aug. 5-7, 2010
AMERICAN BANKRUPTCY INSTITUTE
Mid-Atlantic Bankruptcy Workshop
Hyatt Regency Chesapeake Bay, Cambridge, Md.
Contact: 1-703-739-0800; http://www.abiworld.org/
Aug. 11-14, 2010
AMERICAN BANKRUPTCY INSTITUTE
Hawai.i Bankruptcy Workshop
The Fairmont Orchid, Big Island, Hawaii
Contact: 1-703-739-0800; http://www.abiworld.org/
Sept. 14, 2010
AMERICAN BANKRUPTCY INSTITUTE
ABI/NYIC Golf and Tennis Fundraiser
Maplewood Golf Club, Maplewood, N.J.
Contact: 1-703-739-0800; http://www.abiworld.org/
Sept. 20, 2010 (tentative)
AMERICAN BANKRUPTCY INSTITUTE
Complex Financial Restructuring Program
Fordham Law School, New York, N.Y.
Contact: 1-703-739-0800; http://www.abiworld.org/
Sept. 23-25, 2010
AMERICAN BANKRUPTCY INSTITUTE
Southwest Bankruptcy Conference
Four Seasons Las Vegas, Las Vegas, Nev.
Contact: 1-703-739-0800; http://www.abiworld.org/
Oct. 1, 2010 (tentative)
AMERICAN BANKRUPTCY INSTITUTE
ABI/UMKC Midwestern Bankruptcy Institute
Kansas City Marriott Downtown, Kansas City, Kan.
Contact: 1-703-739-0800; http://www.abiworld.org/
Oct. 6-8, 2010
TURNAROUND MANAGEMENT ASSOCIATION
TMA Annual Convention
JW Marriott Grande Lakes, Orlando, Florida
Contact: http://www.turnaround.org/
Oct. 11, 2010
AMERICAN BANKRUPTCY INSTITUTE
Chicago Consumer Bankruptcy Conference
Standard Club, Chicago, Ill.
Contact: 1-703-739-0800; http://www.abiworld.org/
Oct. 15, 2010
AMERICAN BANKRUPTCY INSTITUTE
NCBJ/ABI Educational Program
Hilton New Orleans Riverside, New Orleans, La.
Contact: 1-703-739-0800; http://www.abiworld.org/
Oct. 29, 2010 (tentative)
AMERICAN BANKRUPTCY INSTITUTE
International Insolvency Symposium
The Savoy, London, England
Contact: 1-703-739-0800; http://www.abiworld.org/
Nov. __, 2010
AMERICAN BANKRUPTCY INSTITUTE
Delaware Views from the Bench and Bankruptcy Bar
Hotel du Pont, Wilmington, Del.
Contact: 1-703-739-0800; http://www.abiworld.org/
Nov. 11, 2010
AMERICAN BANKRUPTCY INSTITUTE
Detroit Consumer Bankruptcy Conference
Hyatt Regency Dearborn, Dearborn, Mich.
Contact: 1-703-739-0800; http://www.abiworld.org/
Nov. 29, 2010
RENAISSANCE AMERICAN MANAGEMENT, INC. & BEARD GROUP, INC.
17th Annual Distressed Investing Conference
The Helmsley Park Lane Hotel, New York City
Contact: 1-903-595-3800;
http://www.renaissanceamerican.com/
Dec. 9-11, 2010
AMERICAN BANKRUPTCY INSTITUTE
Winter Leadership Conference
Camelback Inn, a JW Marriott Resort & Spa,
Scottsdale, Ariz.
Contact: 1-703-739-0800; http://www.abiworld.org/
Dec. 2-4, 2010
AMERICAN BANKRUPTCY INSTITUTE
22nd Annual Winter Leadership Conference
Camelback Inn, Scottsdale, Arizona
Contact: 1-703-739-0800; http://www.abiworld.org/
Jan. 20-21, 2011
AMERICAN BANKRUPTCY INSTITUTE
Rocky Mountain Bankruptcy Conference
Westin Tabor Center, Denver, Colo.
Contact: 1-703-739-0800; http://www.abiworld.org/
January 26-28, 2011
TURNAROUND MANAGEMENT ASSOCIATION
TMA Distressed Investing Conference
Aria Las Vegas
Contact: http://www.turnaround.org/
Mar. 31-Apr. 3, 2011
AMERICAN BANKRUPTCY INSTITUTE
Annual Spring Meeting
Gaylord National Resort & Convention Center,
National Harbor, Md.
Contact: 1-703-739-0800; http://www.abiworld.org/
June 9-12, 2011
AMERICAN BANKRUPTCY INSTITUTE
Central States Bankruptcy Workshop
Grand Traverse Resort and Spa, Traverse City, Mich.
Contact: http://www.abiworld.org/
July 21-24, 2011
AMERICAN BANKRUPTCY INSTITUTE
Northeast Bankruptcy Conference
Hyatt Regency Newport, Newport, R.I.
Contact: 1-703-739-0800; http://www.abiworld.org/
Aug. 4-6, 2011 (tentative)
AMERICAN BANKRUPTCY INSTITUTE
Mid-Atlantic Bankruptcy Workshop
Hotel Hershey, Hershey, Pa.
Contact: 1-703-739-0800; http://www.abiworld.org/
Oct. 14, 2011
AMERICAN BANKRUPTCY INSTITUTE
NCBJ/ABI Educational Program
Tampa Convention Center, Tampa, Fla.
Contact: 1-703-739-0800; http://www.abiworld.org/
Oct. 25-27, 2011
TURNAROUND MANAGEMENT ASSOCIATION
Hilton San Diego Bayfront, San Diego, CA
Contact: http://www.turnaround.org/
Dec. 1-3, 2011
AMERICAN BANKRUPTCY INSTITUTE
23rd Annual Winter Leadership Conference
La Quinta Resort & Spa, La Quinta, Calif.
Contact: 1-703-739-0800; http://www.abiworld.org/
Apr. 19-22, 2012
AMERICAN BANKRUPTCY INSTITUTE
Annual Spring Meeting
Gaylord National Resort & Convention Center,
National Harbor, Md.
Contact: 1-703-739-0800; http://www.abiworld.org/
July 14-17, 2012
AMERICAN BANKRUPTCY INSTITUTE
Southeast Bankruptcy Workshop
The Ritz-Carlton Amelia Island, Amelia Island, Fla.
Contact: 1-703-739-0800; http://www.abiworld.org/
Aug. 2-4, 2012
AMERICAN BANKRUPTCY INSTITUTE
Mid-Atlantic Bankruptcy Workshop
Hyatt Regency Chesapeake Bay, Cambridge, Md.
Contact: 1-703-739-0800; http://www.abiworld.org/
Nov. 29 - Dec. 2, 2012
AMERICAN BANKRUPTCY INSTITUTE
Winter Leadership Conference
JW Marriott Starr Pass Resort & Spa, Tucson, Ariz.
Contact: 1-703-739-0800; http://www.abiworld.org/
The Meetings, Conferences and Seminars column appears in the
Troubled Company Reporter each Wednesday. Submissions via
e-mail to conferences@bankrupt.com are encouraged.
Last Updated: June 15, 2010
*********
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
publication in any form (including e-mail forwarding, electronic
re-mailing and photocopying) is strictly prohibited without prior
written permission of the publishers. Information contained
herein is obtained from sources believed to be reliable, but is
not guaranteed.
The TCR subscription rate is $775 for 6 months delivered via e-
mail. Additional e-mail subscriptions for members of the same
firm for the term of the initial subscription or balance thereof
are $25 each. For subscription information, contact Christopher
Beard at 240/629-3300.
*** End of Transmission ***