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/raid1/www/Hosts/bankrupt/TCR_Public/100717.mbx T R O U B L E D C O M P A N Y R E P O R T E R Saturday, July 17, 2010, Vol. 14, No. 196 Headlines ACCEPTANCE INSURANCE: Posts $13,317 Net Loss in June ALMATIS BV: Reports $2,275,376 Net Loss for May AMTRUST FINANCIAL: Posts $1.3 Million Net Loss in May BLACK CROW: Reports $80,766 Pretax Earnings in May CATHOLIC CHURCH: Wilmington Has $963,479 Cash at End of May FINLAY ENTERPRISES: Posts $239,100 Net Loss in May LEXINGTON PRECISION: Posts $98,000 Net Loss in May NORTEL NETWORKS: Reports $5 Million Net Loss for May PNG VENTURES: Files Monthly Operating Report for March 2010 PROTOSTAR LTD: Posts $3.2 Million Net Loss in April PROTOSTAR LTD: Posts $3.3 Million Net Loss in May PROTOSTAR LTD: ProtoStar I Posts $4.8 Million Net Loss in April PROTOSTAR LTD: ProtoStar I Posts $4.6 Million Net Loss in May PROTOSTAR LTD: ProtoStar II Posts $1.2 Million Net Loss in April PROTOSTAR LTD: ProtoStar II Posts $75.7 Million Net Loss in May PROTOSTAR LTD: ProtoStar Asia Posts $39,237 Net Loss in April PROTOSTAR LTD: ProtoStar Asia Posts $5,338 Net Loss in May PROTOSTAR LTD: ProtoStar Dev't Posts $5,596 Net Loss in April PROTOSTAR LTD: ProtoStar Dev't Files May 2010 Operating Report PROTOSTAR LTD: ProtoStar Satellite Posts $56,151 Net Loss in April PROTOSTAR LTD: ProtoStar Satellite Posts $57,273 Net Loss in May STATION CASINOS: Reports $14,623,000 Net Loss for May ********* ACCEPTANCE INSURANCE: Posts $13,317 Net Loss in June ---------------------------------------------------- Acceptance Insurance Companies Inc. filed with the U.S. Bankruptcy Court for the District of Nebraska on July 13, 2010, its monthly operating report for June 2010. For the month of June, Acceptance Insurance Companies Inc. reported a net loss of $13,317 on net investment income of $49. As of May 31, 2010, the Debtor had total assets of $2,351,586 and total liabilities of $138,185,754, for a stockholders' deficit of $135,834,168. A full-text copy of the Debtor's June 2010 monthly operating report is available for free at: http://researcharchives.com/t/s?6682 Headquartered in Council Bluffs, Iowa, Acceptance Insurance Companies, Inc. -- http://www.aicins.com/-- is a Delaware corporation established in 1968. The Company now only owns Acceptance Insurance Company, a Nebraska domestic insurance company. In late 1999 the Company began exiting the property and casualty business and in 2001 discontinued the issuance or renewal of policies other than crop insurance policies. In December 2002 the Company discontinued the issuance or renewal of crop insurance policies. The Company filed for Chapter 11 protection on Jan. 7, 2005 (Bankr. D. Nebr. Case No. 05-80059). The Debtor's affiliates -- Acceptance Insurance Services, Inc., and American Agrisurance, Inc. -- each filed Chapter 7 petitions (Bankr. D. Nebr. Case Nos. 05-80056 and 05-80058) on January 7, 2005. Jeffrey T. Wegner, Esq., Patrick B. Griffin, Esq., at Kutak Rock LLP, Lewis S. Wiener, Esq., at Sutherland, Asbill & Brennan, and Robert J. Bothe, Esq., at McGrath, North, Mullin & Kratz, PC, represent the Debtor in its restructuring efforts. ALMATIS BV: Reports $2,275,376 Net Loss for May ----------------------------------------------- Almatis B.V. Balance Sheet As of May 31, 2010 ASSETS Current Assets Unrestricted cash & cash equivalents $17,183,596 Restricted cash & cash equivalents 611,993 Accounts receivable (net) 110,886,843 Notes receivable 0 Inventories 10,261,248 Prepaid expenses 1,906,758 Professional retainers 1,478,000 Other current assets 7,241,464 -------------- Total current assets 149,569,904 Property & Equipment Real property & improvements 23,255,510 Machinery & equipment 19,736,512 Furniture, fixtures & office equipment 623,975 Leasehold improvements 0 Vehicles 0 Less: Accumulate depreciation (17,044,850) -------------- Total property & equipment 26,571,147 Other Assets Amounts due from insiders 0 Other assets 846,767,941 -------------- Total other assets 873,339,088 -------------- TOTAL ASSETS $1,022,908,993 ============== LIABILITIES & OWNER EQUITY Liabilities Accounts payable $6,473,746 Taxes payable 4,596 Wages payable 0 Notes payable 0 Secured debt/adequate protection payments 559,612,964 Professional fees 1,447,000 Amounts due to insiders 0 Other liabilities 133,878,960 -------------- Total Liabilities 701,417,268 Liabilities subject to compromise (prepetition) Secured debt 557,001,819 Priority debt - Unsecured debt 125,680,926 -------------- Total prepetition liabilities $682,682,746 OWNERS' EQUITY Capital stock $22,172 Additional paid-in capital 316,786,760 Profit/loss carried forward prior years 36,213,696 Retained earnings -- prepetition (8,038,474) Retained earnings -- postpetition (2,275,376) Foreign currency translation reserve (21,217,054) Postpetition contributions - -------------- Net Owners' Equity 321,491,724 -------------- TOTAL LIABILITIES AND OWNERS' EQUITY $1,022,908,993 ============== Almatis B.V. Statement of Operations For the period May 1 to 31, 2010 Gross revenues $13,378,331 Less: Returns & allowances - -------------- Net revenue 13,378,331 Cost of goods sold: Beginning inventory 8,021,274 Add: Purchase + changes in inventory 7,514,307 Add: Cost of labor 814,054 Add: Other costs 5,666,563 Less: Ending inventory 10,261,248 Cost of goods sold 11,754,952 -------------- Gross profit 1,623,379 Operating expenses: Advertising - Auto & truck expense 7,417 Bad debts - Contributions 2,994 Employee benefits programs 47,424 Officer/insider payments - Insurance (379) Management fees/bonuses - Office expense 16,408 Pension & profit-sharing plans 26,784 Repairs & maintenance 194 Rent & lease expense 3,653 Salary/commission/fees (excl. insider payment) 190,339 Supplies 1,971 Taxes -- payroll 1,181 Taxes -- real estate - Taxes -- other 621 Travel & entertainment 10,916 Utilities 4,080 Other 1,533,416 -------------- Total operating expenses including depreciation 1,847,025 Depreciation/depletion/amortization 283,683 -------------- Net profit (loss) before other income, expenses (507,330) Other Income & Expenses: Other income (932,596) Interest expense 2,666,567 Other expense 113,453 -------------- Net profit (loss) before taxes (2,354,754) Income taxes (79,378) -------------- Net profit (loss) ($2,275,376) ============== Almatis B.V. Schedule of Cash Receipts and Disbursements For the period May 1 to 31, 2010 Cash, beginning of month $20,565,000 Receipts: Receipts Receivable - Prepetition 0 Receipts Receivable - Postpetition 0 Others 96,000 ----------- Total Receipts 96,000 Disbursements: Accounts Payable (1,956,000) Feedstock 0 Net Payroll (719,000) Payroll Taxes (281,000) Sales, Use & Other Taxes 0 Others (142,000) ----------- Total Disbursements 5,183,000 Net Cash Flow 2,182,000 ----------- Cash, End of Month $14,683,000 =========== A full-text copy of the May 2010 Operating Report is available for free at http://bankrupt.com/misc/Almatis_MORMay2010.pdf About Almatis Group Alamtis B.V., and its affiliates filed for Chapter 11 on April 30, 2010 (Bankr. S.D.N.Y. Lead Case No. 10-12308). Almatis B.V. estimated assets of US$500 million to US$1 billion and debts of more than US$1 billion as of the bankruptcy filing. Almatis, operationally headquartered in Frankfurt, Germany, is a global leader in the development, manufacture and supply of premium specialty alumina products. With nearly 900 employees worldwide, the company's products are used in a wide variety of industries, including steel production, cement production, non- ferrous metal production, plastics, paper, ceramics, carpet manufacturing and electronic industries. Almatis operates nine production facilities worldwide and serves customers around the world. Until 2004, the business was known as the chemical business of Alcoa. Almatis is now owned by Dubai International Capital LLC, the international investment arm of Dubai Holding. Michael A. Rosenthal, Esq., at Gibson, Dunn & Crutcher LLP, serves as counsel to the Debtors in the Chapter 11 cases. Linklaters LLP is the special English and German counsel and De Brauw Blackstone Westbroek N.V. is Dutch counsel. Epiq Bankruptcy Solutions, LLC, serves as claims and notice agent. Bankruptcy Creditors' Service, Inc., publishes Almatis Bankruptcy News. The newsletter tracks the Chapter 11 proceeding and ancillary foreign proceedings undertaken by Almatis B.V., and its affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) AMTRUST FINANCIAL: Posts $1.3 Million Net Loss in May ----------------------------------------------------- AmTrust Financial Corp., nka AmFin Financial Corporation, reported a net loss of $1,267,242 for the month ended May 31, 2010. At May 31, 2010, the Company had total assets of $165,660,587, total postpetition liabilities of $2,071,506, total prepetition liabilities of $156,909,447, and total equity of $6,679,633. A full-text copy of the monthly operating report is available at no charge at: http://bankrupt.com/misc/amfinfinancial.may2010mor.pdf About AmTrust Financial AmTrust Financial Corp. (PINK: AFNL), now known as AmFin Financial Corp., was the owner of the AmTrust Bank. AmTrust was the seventh-largest holder of deposits in South Florida, with $4.7 billion in deposits and 21 branches. In November 2008, the Office of Thrift Supervision issued a cease and desist order requiring AmTrust to improve its capital ratios. AmTrust Financial, together with affiliates that include AmTrust Management Inc., filed for Chapter 11 bankruptcy protection on November 30, 2009 (Bankr. N.D. Ohio Case No. 09-21323). G. Christopher Meyer, Esq., and Sherri Lynn Dahl, Esq., at Squire Sanders & Dempsey L.L.P., assist the Debtors in their restructuring effort. Kurtzman Carson Consultants serves as claims and notice agent. Attorneys at Hahn Loeser & Parks LLP serve as counsel to the Official Committee of Unsecured Creditors. AmTrust Management listed $100,000,001 to $500,000,000 in assets and $100,000,001 to $500,000,000 in liabilities. AmTrust Bank is not part of the Chapter 11 filings. On December 4, 2009, AmTrust Bank was closed by the Office of Thrift Supervision, which appointed the Federal Deposit Insurance Corporation as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with New York Community Bank, Westbury, New York, to assume all of the deposits of AmTrust Bank. BLACK CROW: Reports $80,766 Pretax Earnings in May -------------------------------------------------- Black Crow Media Group, LLC, filed on June 29, 2010, a monthly operating report for the period ended May 31, 2010. The Company's consolidating balance sheet at January 31, 2009, showed $39.5 million in assets and $47.3 million in total liabilities, for a stockholders' deficit of $7.8 million. The Debtors reported pretax earnings of $80,766 on $1,152,198 of net revenue for May 2010. Earnings before interest, taxes, depreciation and amortization (EBITDA) for the month were $332,208. A full-text copy of the Debtors' monthly operating report for the period ended May 31, 2010, is available at no charge at: http://bankrupt.com/misc/blackcrow.may2010mor.pdf About Black Crow Daytona Beach, Florida-based Black Crow Media Group, LLC, owns and operates 17 FM and 5 AM radio stations in Daytona Beach, Live Oak, Valdosta, Huntsville, Alabama, and Jackson, Tennessee. The Company filed for Chapter 11 bankruptcy protection on January 11, 2010 (Bankr. M.D. Fla. Case No. 10-00172). The Company's affiliates -- Black Crow Media, LLC, et al. -- also filed separate Chapter 11 petitions. Mariane L. Dorris, Esq., and R Scott Shuker, Esq., at Latham Shuker Eden & Beaudine LLP, assist the Company in its restructuring effort. The Company listed $10,000,001 to $50,000,000 in assets and $50,000,001 to $100,000,000 in liabilities. CATHOLIC CHURCH: Wilmington Has $963,479 Cash at End of May ----------------------------------------------------------- Catholic Diocese of Wilmington, Inc. Balance Sheet As of May 31, 2010 ASSETS Cash & Equivalents $972,203 Accounts Receivable (Net) 3,284,404 Payroll Receivable - Notes Receivable 1,469,174 Professional Retainers 545,000 Unrestricted Pooled Investments 13,176,284 Restricted Pooled Investments 29,143,015 Unallocated Audit Fees - Other Assets 53,743 Real Estate 1,106,640 Assets Held for Others 76,833,144 ----------- TOTAL ASSETS $126,583,607 =========== LIABILITIES Pre-Filing Accounts Payable $136,216 Payroll & Payroll Taxes Payable 203 Payroll Garnishments Payable - Accrued Vacation Time Payable 125,107 Blue Cross/Blue Shield Accrual 39,089 Accounts Payable Capital Campaign 18,096 Bonds Payable 11,000,000 Priest Pension 13,107,216 Lay Pensions 64,366,743 National Collections 326,169 Other Liabilities 63,760 Assets Held for Others 76,833,144 ----------- TOTAL LIABILITIES 166,015,743 NET ASSETS Beginning Year Net Assets (41,816,364) Net Assets - Prepetition 4,138,712 Net Assets - Postpetition (1,754,484) ----------- TOTAL NET ASSETS (39,432,136) ----------- TOTAL LIABILITIES & NET ASSETS $126,583,607 =========== Catholic Diocese of Wilmington, Inc. Statement of Operations For the month ending May 31, 2010 CDOW Operations CDOW Revenue Assessments $322,053 Investment Income (2,744,426) Operational Income 261,122 Designated Income (Education) 12,098 ----------- Total CDOW Revenue (2,149,153) CDOW Expenses Payroll & Taxes (213,440) Medical Payments - Other Compensation (48,526) Other Operational (275,347) Capital Expenditures - Catholic Schools, Inc. (65,402) Casa San Francisco - Ministry to the Elderly - Bankruptcy professionals (807,467) Neumann Center - Vision for the Future (Tuition Assistance) - Owed to Parishes (Cap Campaign) (1,317) ----------- Total CDOW Expenses (1,411,499) ----------- CDOW NET OPERATING CASH (3,560,652) Program Services Annual Appeal Revenue 585,818 Program Services Expenditures Catholic Youth Organization (9,000) Catholic Charities (188,536) High School Appeal Allocation - The Dialog (46,420) ----------- Total Program Services Expenses (243,956) ----------- PROGRAM SERVICES NET CASH 341,862 Benefits & Insurance Program Administration Medical Program Premiums Received 690,318 Expenses (964,286) ----------- Net Medical (273,968) Workers Compensation Premiums Received - Expenses (26,676) ----------- Net Workers Comp (26,676) Property & Liability Insurance Premiums Received 129,426 Expenses (202,535) ----------- Net P&L Insurance (73,109) Pensions Priests (52,117) Lay Employees - ----------- Total Pensions (52,117) ----------- NET CHANGE IN LIQUIDITY ($3,644,660) =========== Catholic Diocese of Wilmington, Inc. Schedule of Cash Receipts and Disbursements For the month ending May 31, 2010 CASH BEGINNING OF PERIOD $1,079,103 RECEIPTS ASSESSMENTS 322,053 ANNUAL APPEAL 585,818 INSURANCE PREMIUMS 819,744 OTHER OPERATING 273,220 ----------- TOTAL RECEIPTS 2,000,835 DISBURSEMENTS NET PAYROLL AND TAXES 213,440 INSURANCE PAYMENTS 1,193,497 OPERATING EXPENSES 307,148 OTHER 309,358 PROFESSIONAL FEES 807,467 U.S. TRUSTEE QUARTERLY FEES 2,600 COURT COSTS - ----------- TOTAL DISBURSEMENTS 2,833,510 ----------- NET CASH FLOW (832,675) ----------- Transfers out 15,442 Transfers in 732,493 ----------- CASH - END OF PERIOD $963,479 =========== About the Diocese of Wilmington The Diocese of Wilmington covers Delaware and the Eastern Shore of Maryland and serves about 230,000 Catholics. The Delaware diocese is the seventh Roman Catholic diocese to file for Chapter 11 protection to deal with lawsuits for sexual abuse. Previous filings were by the dioceses in Spokane, Washington; Portland, Oregon; Tucson, Arizona; Davenport, Iowa, Fairbanks, Alaska; and San Diego, California. The bankruptcy filing automatically stayed eight consecutive abuse trials scheduled in Delaware scheduled to begin October 19. There are 131 cases filed against the Diocese, with 30 scheduled for trial. The Diocese filed for Chapter 11 on Oct. 18, 2009 (Bankr. D. Del. Case No. 09-13560). Attorneys at Young Conaway Stargatt & Taylor, LLP, serve as counsel to the Diocese. The Ramaekers Group, LLC is the financial advisor. The petition says assets range $50,000,001 to $100,000,000 while debts are between $100,000,001 to $500,000,000. (Catholic Church Bankruptcy News; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000). FINLAY ENTERPRISES: Posts $239,100 Net Loss in May -------------------------------------------------- On July 7, 2010, Finlay Enterprises, Inc., and Finlay Fine Jewelry Corporation filed their unaudited monthly operating report for the fiscal month ended May 31, 2010, with the United States Bankruptcy Court for the Southern District of New York. For the fiscal month ended May 31, 2010, the Company reported a net loss of $239,100. The Debtor incurred $748,300 in professional fees and other reorganization items during the period. At May 31, 2010, the Company had $97,283,485 in total assets and $251,887,720 in total liabilities, for a shareholders' deficit of $154,604,235. Cash held at May 31, 2010, was $80,364,000, compared to $83,236,000 at May 1, 2010. Including A/P overdraft and credit card receivables, unrestricted cash and equivalents were $80,392,375 at May 31, 2010. A full-text copy of the Debtors' monthly operating report for the fiscal month ended May 31, 2010, is available for free at: http://researcharchives.com/t/s?6681 Finlay Enterprises, Inc. (OTC Bulletin Board: FNLY) through its wholly owned subsidiary, Finlay Fine Jewelry Corporation, is a retailer of fine jewelry operating luxury stand-alone specialty jewelry stores and licensed fine jewelry departments in department stores throughout the United States and achieved sales of $754.3 million in fiscal 2008. The number of locations at the end of the second quarter ended August 1, 2009, totaled 182, including 67 Bailey Banks & Biddle, 34 Carlyle and four Congress specialty jewelry stores and 77 licensed departments with The Bon Ton. The Company and seven affiliates filed for Chapter 11 on August 5, 2009 (Bankr. S. D. N.Y. Case No. 09-14873). Weil, Gotshal & Manges LLP, serves as bankruptcy counsel. Alvarez & Marsal North America, LLC, is engaged as restructuring advisor in the Chapter 11 case, and the firm's David Coles is appointed as chief restructuring officer. Epiq Bankruptcy Solutions, LLC, serves as claims and notice agent. Judge James Peck presides over the case. In its bankruptcy petition, Finlay Enterprises disclosed assets of $331,824,000 against debts of $385,476,000 as of July 4, 2009. As of the petition date, Finlay owes $38 million outstanding under a first lien credit agreement, $24.7 million under second lien notes, $176.6 million outstanding under third lien notes (in addition to $17.5 million to secured vendors), and $40.6 million under remaining unsecured obligations under the senior notes. LEXINGTON PRECISION: Posts $98,000 Net Loss in May -------------------------------------------------- On June 29, 2010, Lexington Precision Corp. and Lexington Rubber Group, Inc., filed with the U.S. Bankruptcy Court for the Southern District of New York a corporate monthly operating report for the month of May 2010. The Debtors reported a net loss of $98,000 on net sales of $6.7 million for the month ended May 31, 2010. At May 31, 2010, the Debtors had total assets of $46.4 million and total liabilities of $104.8 million, for a shareholders' deficit of $58.5 million. A full-text copy of the Debtor's monthly operating report for April is available for free at: http://bankrupt.com/misc/lexingtonprecision.may2010mor.pdf About Lexington Precision Headquartered in New York, Lexington Precision Corp. -- http://www.lexingtonprecision.com/-- manufactures tight-tolerance rubber and metal components for use in medical, automotive, and industrial applications. As of February 29, 2008, the Company employed about 651 regular and 22 temporary personnel. The Company and its affiliate, Lexington Rubber Group Inc., filed for Chapter 11 protection on April 1, 2008 (Bankr. S.D.N.Y. Lead Case No.08-11153). Christopher J. Marcus, Esq., and Victoria Vron, Esq., at Weil, Gotshal & Manges, represent the Debtors in their restructuring efforts. The Debtors selected Epiq Systems - Bankruptcy Solutions LLC as claims agent. The U.S. Trustee for Region 2 appointed six creditors to serve on an official committee of unsecured creditors. Paul N. Silverstein, Esq., and Jonathan Levine, Esq., at Andrews Kurth LLP, represent the Committee as counsel. On May 26, 2010, the Bankruptcy Court entered an order approving the Disclosure Statement for Debtors' Fourth Amended Joint Plan of Reorganization under Chapter 11 of the Bankruptcy Code, dated May 26, 2010. The hearing to consider confirmation of the proposed plan, originally scheduled for July 14, 2010, was adjourned to July 21, 2010. NORTEL NETWORKS: Reports $5 Million Net Loss for May ---------------------------------------------------- Nortel Networks Inc., et al. Condensed Combined Balance Sheet As of May 31, 2010 (Unaudited) (In millions of U.S. dollars) NNI AltSystems Other ----- ---------- ----- ASSETS Current assets Cash and cash equivalents $902 - - Restricted cash and cash equiv 26 1 - Accounts receivable - net 74 - - Intercompany accounts receivables 325 47 (6) Inventories - net 30 - - Other current assets 123 - - Assets held for sale 113 - - Assets of discontinued operations 22 - - ----- ---------- ----- Total current assets 1,615 48 (6) Investments in non-Debtor subs 46 1 (1) Investments - other 19 - - Plant and equipment - net 78 - - Goodwill - 1 - Other assets 46 - - ----- ---------- ----- Total assets 1,804 50 (7) LIABILITIES AND SHAREHOLDERS' DEFICIT Current liabilities not subject to compromise Trade and other accounts payables 18 - - Intercompany accounts payable 25 10 (6) Payroll and benefit-related liab. 32 - - Contractual liabilities 2 - - Restructuring liabilities 2 - - Other accrued liabilities 133 - - Income taxes 15 - - Liabilities held for sale 95 - - Liabilities of discontinued op 27 - - ----- ---------- ----- Total current liabilities not 349 10 (6) to compromise Restructuring 4 - - Deferred income and other credits 7 - - Post-employment benefits 7 - - ----- ---------- ----- Total liabilities not subject 367 10 (6) compromise Liabilities subject to compromise 5,582 54 127 Liabilities subject to compromise 82 - - of discontinued operations ----- ---------- ----- Total liabilities 6,031 64 121 SHAREHOLDERS' DEFICIT Common shares - 719 32 Preferred shares - 16 47 Additional paid-in capital 17,746 7,330 5,252 Accumulated deficit (21,962) (8,079)(5,458) Accumulated other comprehensive income (loss) (11) - (1) ----- ---------- ----- Total U.S. Debtors shareholders' (4,227) (14) (128) deficit Noncontrolling interests - - - ----- ---------- ----- Total shareholders' deficit (4,227) (14) (128) ----- ---------- ----- Total liabilities and shareholders deficit $1,804 $50 ($7) ===== ========== ===== Nortel Networks Inc., et al. Condensed Combined Statement of Operations For the Period May 1 to 31, 2010 (Unaudited) (In millions of U.S. dollars) NNI AltSystems Other ----- ---------- ----- Total revenues $44 - - Total cost of revenues 40 - - ----- ---------- ----- Gross profit 4 - - Selling, general and admin exp 27 - - Research and development expense 7 - - Other operating expense (income)-net (21) - - ----- ---------- ----- Operating earnings (loss) (9) - - Other income (expense) - net 8 - - ----- ---------- ----- Earnings from continuing operations before reorganization items, income taxes and equity in net earnings (loss) of associated companies (1) - - Reorganization items - net (6) - - ----- ---------- ----- Earnings from continuing operations before income taxes and equity in net earnings (loss) of associated companies (7) - - Income tax expense - - - ----- ---------- ----- Earnings from continuing operations before equity in net earnings (loss) of associated companies (7) - - Equity in net earnings (loss) of associated companies - net of tax - - - Equity in net earnings (loss) of non-Debtor subsidiaries - net 3 - - ----- ---------- ----- Net earnings (loss) from continuing operations (4) - - Net earnings (loss) from disco operations - net of tax (1) - - ----- ---------- ----- Net earnings (loss) (5) - - Income attributable to noncontrolling interests - - - ----- ---------- ----- Net earnings (loss) attributable to U.S. Debtors ($5) - - ===== ========== ===== Nortel Networks Inc., et al. Condensed Combined Statement of Cash Flows For the Period May 1 to 31, 2010 (Unaudited) (In millions of U.S. dollars) NNI AltSystems Other ----- ---------- ----- Cash flows from (used in) operating activities: Net earnings (loss) attributable to U.S. Debtors ($5) - - Net loss (earnings) from discontinued operations - net of tax 1 - - Adjustments to reconcile net loss from continuing operations to net cash from (used in) operating activities, net of effects from acquisitions and divestitures of businesses: Amortization and depreciation 1 - - Equity in net earnings of associated companies (1) - - Pension and other accruals (1) - - Reorganization items - non ca 4 - - Other - net (1) - - Change in operating assets and liabilities 16 - - ----- ---------- ----- Net cash from (used in) operating activities - continuing operations 14 - - Net cash from (used in) operating activities - discontinued operations - - - ----- ---------- ----- Net cash from (used in) operating activities 14 - - Cash flows from (used in) investing activities: Change in restricted cash and equivalents 11 - - ----- ---------- ----- Net cash from (used in) invest activities - continuing operations 11 - - Net cash from (used in) investing activities - discontinued operations - - - ----- ---------- ----- Net cash from (used in) invest activities 11 - - Cash flows from (used in) financing activities: Net cash from (used in) financing activities - continuing operations - - - Net cash from (used in) financing activities - discontinued operations - - - ----- ---------- ----- Net cash from (used in) financing activities - - - Effect of foreign exchange rate changes on cash and cash equivalents - - - ----- ---------- ----- Net cash from (used in) continuing operations 25 - - Net cash from (used in) discontinued operations 877 - - ----- ---------- ----- Net increase (decrease) in cash & cash equivalents 902 - - Cash and cash equivalents, beginning - - - ----- ---------- ----- Cash and cash equivalents of continuing operations, end $902 - - ===== ========== ===== About Nortel Networks Nortel Networks (OTC BB: NRTLQ) -- http://www.nortel.com/-- delivers communications capabilities that make the promise of Business Made Simple a reality for the Company's customers. The Company's next-generation technologies, for both service provider and enterprise networks, support multimedia and business-critical applications. Nortel's technologies are designed to help eliminate the barriers to efficiency, speed and performance by simplifying networks and connecting people to the information they need, when they need it. Nortel Networks Corp., Nortel Networks Inc., and other affiliated corporations in Canada sought insolvency protection under the Companies' Creditors Arrangement Act in the Ontario Superior Court of Justice (Commercial List). Ernst & Young was appointed to serve as monitor and foreign representative of the Canadian Nortel Group. The Monitor sought recognition of the CCAA Proceedings in the U.S. by filing a bankruptcy petition under Chapter 15 of the U.S. Bankruptcy Code (Bankr. D. Del. Case No. 09-10164). Mary Caloway, Esq., and Peter James Duhig, Esq., at Buchanan Ingersoll & Rooney PC, in Wilmington, Delaware, serves as the Chapter 15 petitioner's counsel. Nortel Networks Inc. and 14 affiliates filed separate Chapter 11 petitions on January 14, 2009 (Bankr. D. Del. Case No. 09-10138). Judge Kevin Gross presides over the case. James L. Bromley, Esq., at Cleary Gottlieb Steen & Hamilton, LLP, in New York, serves as general bankruptcy counsel; Derek C. Abbott, Esq., at Morris Nichols Arsht & Tunnell LLP, in Wilmington, serves as Delaware counsel. The Chapter 11 Debtors' other professionals are Lazard Freres & Co. LLC as financial advisors; and Epiq Bankruptcy Solutions LLC as claims and notice agent. Certain of Nortel's European subsidiaries also made consequential filings for creditor protection. The Nortel Companies related in a press release that Nortel Networks UK Limited and certain subsidiaries of the Nortel group incorporated in the EMEA region have each obtained an administration order from the English High Court of Justice under the Insolvency Act 1986. The applications were made by the EMEA Subsidiaries under the provisions of the European Union's Council Regulation (EC) No. 1346/2000 on Insolvency Proceedings and on the basis that each EMEA Subsidiary's centre of main interests is in England. Under the terms of the orders, representatives of Ernst & Young LLP have been appointed as administrators of each of the EMEA Companies and will continue to manage the EMEA Companies and operate their businesses under the jurisdiction of the English Court and in accordance with the applicable provisions of the Insolvency Act. Several entities, particularly, Nortel Government Solutions Incorporated have material operations and are not part of the bankruptcy proceedings. As of September 30, 2008, Nortel Networks Corp. reported consolidated assets of US$11.6 billion and consolidated liabilities of US$11.8 billion. The Nortel Companies' U.S. businesses are primarily conducted through Nortel Networks Inc., which is the parent of majority of the U.S. Nortel Companies. As of September 30, 2008, NNI had assets of about US$9 billion and liabilities of US$3.2 billion, which do not include NNI's guarantee of some or all of the Nortel Companies' about US$4.2 billion of unsecured public debt. Bankruptcy Creditors' Service, Inc., publishes Nortel Networks Bankruptcy News. The newsletter tracks the Chapter 11 proceeding and ancillary foreign proceedings undertaken by Nortel Networks Corp. and its various affiliates. (http://bankrupt.com/newsstand/ or 215/945-7000) PNG VENTURES: Files Monthly Operating Report for March 2010 ----------------------------------------------------------- On June 22, 2010, PNG Ventures, Inc., filed a monthly operating report for the month ended March 31, 2010, with the U.S. Bankruptcy Court for the District of Delaware. At March 31, 2010, PNG Ventures had $353,173 in cash, compared to $118,968 at February 28, 2010. At March 31, 2010, PNG Ventures had $28,922,000 in total assets, $17,753,000 of total liabilities, and $11,169,000 of stockholders' equity. Balance sheet data were sourced from the Company's Form 10-Q filing for the three months ended March 31, 2010. A full-text copy of the quarterly report for the quarterly period ended March 31, 2010, is available at no charge at: http://researcharchives.com/t/s?6684 A copy of the monthly operating report is available for free at: http://bankrupt.com/misc/pngventures.march2010mor.pdf About Applied Natural (fka PNG Ventures, Inc.) PNG Ventures, now known as Applied Natural, engages in the production, distribution, and sale of liquefied natural gas ("LNG") to customers consisting of public utilities, industrial end-users and other fleet customers within the transportation, manufacturing, distribution, and municipal markets, primarily in California, Arizona, and Nevada. The Company also offers turnkey fuel solutions, including delivery, equipment storage, fuel dispensing equipment, and fuel loading facilities. PNG Ventures and its affiliates filed for Chapter 11 on September 10, 2009 (Bankr. D. Del. Case No. 09-13162). Attorneys at Fox Rothschild LLP represent the Debtors in their restructuring effort. Logan & Co. serves as claims and notice agent. PNG won confirmation of its reorganization plan in March 2010. On March 12, 2010, the Bankruptcy Court entered an order confirming the Debtors' First Amended Plan of Reorganization. On March 24, 2010, the Plan became effective after each of the conditions precedent enumerated in the Plan were satisfied or waived. The Plan gives the first-lien creditor $5.5 million cash, a new $9.8 million secured loan, and 66% of the new stock in return for a $35.5 million claim. In exchange for financing the plan, lenders will receive a new four-year term loan and 26.5% of the stock. Unsecured creditors are receiving about 28% in cash plus 7.5% of the new stock. Existing stock was canceled. PROTOSTAR LTD: Posts $3.2 Million Net Loss in April --------------------------------------------------- ProtoStar Ltd. reported a net loss of $3.2 million for the month of April 2010. Interest expense was roughly $3.4 million. At April 30, 2010, ProtoStar Ltd. had total assets of $349.0 million, total liabilities of $318.9 million, and net owner equity of $30.1 million. A full-text copy of the April 2010 monthly operating report is available at no charge at: http://bankrupt.com/misc/protostarltd.april2010mor.pdf About ProtoStar Ltd. Hamilton, HM EX, Bermuda-based ProtoStar Ltd. is a satellite operator formed in 2005 to acquire, modify, launch and operate high-power geostationary communication satellites for direct-to- home satellite television and broadband internet access across the Asia-Pacific region. The Company and its affiliates filed for Chapter 11 on July 29, 2009 (Bankr. D. Del. Lead Case No. 09-12659). The Debtor selected Pachulski Stang Ziehl & Jones LLP as Delaware counsel; Law Firm of Appleby as their Bermuda counsel; UBS Securities LLC as financial advisor & investment banker and Kurtzman Carson Consultants LLC as claims and noticing agent. The Debtors have tapped UBS Securities LLC as investment banker and financial advisor. Also on July 29, 2009, ProtoStar and its affiliates, including ProtoStar Development Ltd., commenced a coordinated proceeding in the Supreme Court of Bermuda. John C. McKenna of Finance & Risk Services Ltd. as liquidator of the Bermuda Group. In their Chapter 11 petition, the Debtors listed between US$100 million and US$500 million each in assets and debts. As of December 31, 2008, ProtoStar's consolidated financial statements, which include non-debtor affiliates, showed total assets of US$463,000,000 against debts of US$528,000,000. PROTOSTAR LTD: Posts $3.3 Million Net Loss in May ------------------------------------------------- ProtoStar Ltd. reported a net loss of $3.3 million for the month of May 2010. Interest expense was roughly $3.5 million. At May 31, 2010, ProtoStar Ltd. had total assets of $347.4 million, total liabilities of $320.6 million, and net owner equity of $26.8 million. A full-text copy of the May 2010 monthly operating report is available at no charge at: http://bankrupt.com/misc/protostarltd.may2010mor.pdf About ProtoStar Ltd. Hamilton, HM EX, Bermuda-based ProtoStar Ltd. is a satellite operator formed in 2005 to acquire, modify, launch and operate high-power geostationary communication satellites for direct-to- home satellite television and broadband internet access across the Asia-Pacific region. The Company and its affiliates filed for Chapter 11 on July 29, 2009 (Bankr. D. Del. Lead Case No. 09-12659). The Debtor selected Pachulski Stang Ziehl & Jones LLP as Delaware counsel; Law Firm of Appleby as their Bermuda counsel; UBS Securities LLC as financial advisor & investment banker and Kurtzman Carson Consultants LLC as claims and noticing agent. The Debtors have tapped UBS Securities LLC as investment banker and financial advisor. Also on July 29, 2009, ProtoStar and its affiliates, including ProtoStar Development Ltd., commenced a coordinated proceeding in the Supreme Court of Bermuda. John C. McKenna of Finance & Risk Services Ltd. as liquidator of the Bermuda Group. In their Chapter 11 petition, the Debtors listed between US$100 million and US$500 million each in assets and debts. As of December 31, 2008, ProtoStar's consolidated financial statements, which include non-debtor affiliates, showed total assets of US$463,000,000 against debts of US$528,000,000. PROTOSTAR LTD: ProtoStar I Posts $4.8 Million Net Loss in April --------------------------------------------------------------- ProtoStar I Ltd. had unrestricted cash and cash equivalents of $1,951,506 at April 30, 2010. Beginning cash was $611,560. ProtoStar I reported a net loss of $4.8 million for the month of April. Interest expense was roughly $4.0 million. At April 30, 2010, ProtoStar I had total assets of $213.2 million and total liabilities of $273.6 million. A full-text copy of the April 2010 monthly operating report is available at no charge at: http://bankrupt.com/misc/protostarI.april2010mor.pdf About ProtoStar Ltd. Hamilton, HM EX, Bermuda-based ProtoStar Ltd. is a satellite operator formed in 2005 to acquire, modify, launch and operate high-power geostationary communication satellites for direct-to- home satellite television and broadband internet access across the Asia-Pacific region. The Company and its affiliates filed for Chapter 11 on July 29, 2009 (Bankr. D. Del. Lead Case No. 09-12659). The Debtor selected Pachulski Stang Ziehl & Jones LLP as Delaware counsel; Law Firm of Appleby as their Bermuda counsel; UBS Securities LLC as financial advisor & investment banker and Kurtzman Carson Consultants LLC as claims and noticing agent. The Debtors have tapped UBS Securities LLC as investment banker and financial advisor. Also on July 29, 2009, ProtoStar and its affiliates, including ProtoStar Development Ltd., commenced a coordinated proceeding in the Supreme Court of Bermuda. John C. McKenna of Finance & Risk Services Ltd. as liquidator of the Bermuda Group. In their Chapter 11 petition, the Debtors listed between US$100 million and US$500 million each in assets and debts. As of December 31, 2008, ProtoStar's consolidated financial statements, which include non-debtor affiliates, showed total assets of US$463,000,000 against debts of US$528,000,000. PROTOSTAR LTD: ProtoStar I Posts $4.6 Million Net Loss in May ------------------------------------------------------------- ProtoStar I Ltd. had unrestricted cash and cash equivalents of $1,065,247 at May 31, 2010. Beginning cash was $1,951,506. ProtoStar I reported a net loss of $4.6 million for the month of May. Interest expense was roughly $3.7 million. At May 31, 2010, ProtoStar I had total assets of $212.2 million and total liabilities of $277.3 million. A full-text copy of the May 2010 monthly operating report is available at no charge at: http://bankrupt.com/misc/protostarI.may2010mor.pdf About ProtoStar Ltd. Hamilton, HM EX, Bermuda-based ProtoStar Ltd. is a satellite operator formed in 2005 to acquire, modify, launch and operate high-power geostationary communication satellites for direct-to- home satellite television and broadband internet access across the Asia-Pacific region. The Company and its affiliates filed for Chapter 11 on July 29, 2009 (Bankr. D. Del. Lead Case No. 09-12659). The Debtor selected Pachulski Stang Ziehl & Jones LLP as Delaware counsel; Law Firm of Appleby as their Bermuda counsel; UBS Securities LLC as financial advisor & investment banker and Kurtzman Carson Consultants LLC as claims and noticing agent. The Debtors have tapped UBS Securities LLC as investment banker and financial advisor. Also on July 29, 2009, ProtoStar and its affiliates, including ProtoStar Development Ltd., commenced a coordinated proceeding in the Supreme Court of Bermuda. John C. McKenna of Finance & Risk Services Ltd. as liquidator of the Bermuda Group. In their Chapter 11 petition, the Debtors listed between US$100 million and US$500 million each in assets and debts. As of December 31, 2008, ProtoStar's consolidated financial statements, which include non-debtor affiliates, showed total assets of US$463,000,000 against debts of US$528,000,000. PROTOSTAR LTD: ProtoStar II Posts $1.2 Million Net Loss in April ---------------------------------------------------------------- ProtoStar II Ltd. had unrestricted cash and cash equivalents of $2,817,427 at April 30, 2010. Beginning cash was $1,580,843. ProtoStar II reported a net loss of $1,230,880 on net revenue of $1,423,202 for the month of April. Interest expense was roughly $81,249. At April 30, 2010, ProtoStar II had total assets of $306.1 million, total liabilities of $234.1 million, and net owner equity of $72.0 million. A full-text copy of the April 2010 monthly operating report is available at no charge at: http://bankrupt.com/misc/protostarII.apirl2010mor.pdf About ProtoStar Ltd. Hamilton, HM EX, Bermuda-based ProtoStar Ltd. is a satellite operator formed in 2005 to acquire, modify, launch and operate high-power geostationary communication satellites for direct-to- home satellite television and broadband internet access across the Asia-Pacific region. The Company and its affiliates filed for Chapter 11 on July 29, 2009 (Bankr. D. Del. Lead Case No. 09-12659). The Debtor selected Pachulski Stang Ziehl & Jones LLP as Delaware counsel; Law Firm of Appleby as their Bermuda counsel; UBS Securities LLC as financial advisor & investment banker and Kurtzman Carson Consultants LLC as claims and noticing agent. The Debtors have tapped UBS Securities LLC as investment banker and financial advisor. Also on July 29, 2009, ProtoStar and its affiliates, including ProtoStar Development Ltd., commenced a coordinated proceeding in the Supreme Court of Bermuda. John C. McKenna of Finance & Risk Services Ltd. as liquidator of the Bermuda Group. In their Chapter 11 petition, the Debtors listed between US$100 million and US$500 million each in assets and debts. As of December 31, 2008, ProtoStar's consolidated financial statements, which include non-debtor affiliates, showed total assets of US$463,000,000 against debts of US$528,000,000. PROTOSTAR LTD: ProtoStar II Posts $75.7 Million Net Loss in May --------------------------------------------------------------- ProtoStar II Ltd. had cash and cash equivalents of $3,883,885 at May 31, 2010. Beginning cash was $2,817,427. ProtoStar II reported a net loss of $75.7 million on net revenue of $830,785 for the month of May. Loss from sale of satellite was $74.0 million. At May 31, 2010, ProtoStar II had total assets of $186.8 million, total liabilities of $190.5 million, and net owner equity of $3.7 million. A full-text copy of the May 2010 monthly operating report is available at no charge at: http://bankrupt.com/misc/protostarII.may2010mor.pdf About ProtoStar Ltd. Hamilton, HM EX, Bermuda-based ProtoStar Ltd. is a satellite operator formed in 2005 to acquire, modify, launch and operate high-power geostationary communication satellites for direct-to- home satellite television and broadband internet access across the Asia-Pacific region. The Company and its affiliates filed for Chapter 11 on July 29, 2009 (Bankr. D. Del. Lead Case No. 09-12659). The Debtor selected Pachulski Stang Ziehl & Jones LLP as Delaware counsel; Law Firm of Appleby as their Bermuda counsel; UBS Securities LLC as financial advisor & investment banker and Kurtzman Carson Consultants LLC as claims and noticing agent. The Debtors have tapped UBS Securities LLC as investment banker and financial advisor. Also on July 29, 2009, ProtoStar and its affiliates, including ProtoStar Development Ltd., commenced a coordinated proceeding in the Supreme Court of Bermuda. John C. McKenna of Finance & Risk Services Ltd. as liquidator of the Bermuda Group. In their Chapter 11 petition, the Debtors listed between US$100 million and US$500 million each in assets and debts. As of December 31, 2008, ProtoStar's consolidated financial statements, which include non-debtor affiliates, showed total assets of US$463,000,000 against debts of US$528,000,000. PROTOSTAR LTD: ProtoStar Asia Posts $39,237 Net Loss in April ------------------------------------------------------------- ProtoStar Asia Pte. Ltd. reported a net loss of $39,237 in April 2010. At April 30, 2010, the Company had $1,339,430 in total assets and $1,904,605 in total liabilities. A full-text copy of the April 2010 monthly operating report is available at no charge at: http://bankrupt.com/misc/protostarasia.april2010mor.pdf About ProtoStar Ltd. Hamilton, HM EX, Bermuda-based ProtoStar Ltd. is a satellite operator formed in 2005 to acquire, modify, launch and operate high-power geostationary communication satellites for direct-to- home satellite television and broadband internet access across the Asia-Pacific region. The Company and its affiliates filed for Chapter 11 on July 29, 2009 (Bankr. D. Del. Lead Case No. 09-12659). The Debtor selected Pachulski Stang Ziehl & Jones LLP as Delaware counsel; Law Firm of Appleby as their Bermuda counsel; UBS Securities LLC as financial advisor & investment banker and Kurtzman Carson Consultants LLC as claims and noticing agent. The Debtors have tapped UBS Securities LLC as investment banker and financial advisor. Also on July 29, 2009, ProtoStar and its affiliates, including ProtoStar Development Ltd., commenced a coordinated proceeding in the Supreme Court of Bermuda. John C. McKenna of Finance & Risk Services Ltd. as liquidator of the Bermuda Group. In their Chapter 11 petition, the Debtors listed between US$100 million and US$500 million each in assets and debts. As of December 31, 2008, ProtoStar's consolidated financial statements, which include non-debtor affiliates, showed total assets of US$463,000,000 against debts of US$528,000,000. PROTOSTAR LTD: ProtoStar Asia Posts $5,338 Net Loss in May ---------------------------------------------------------- ProtoStar Asia Pte. Ltd. reported a net loss of $5,338 in May 2010. At May 31, 2010, the Company had $1,334,149 in total assets and $1,904,699 in total liabilities. A full-text copy of the May 2010 monthly operating report is available at no charge at: http://bankrupt.com/misc/protostarasia.may2010mor.pdf About ProtoStar Ltd. Hamilton, HM EX, Bermuda-based ProtoStar Ltd. is a satellite operator formed in 2005 to acquire, modify, launch and operate high-power geostationary communication satellites for direct-to- home satellite television and broadband internet access across the Asia-Pacific region. The Company and its affiliates filed for Chapter 11 on July 29, 2009 (Bankr. D. Del. Lead Case No. 09-12659). The Debtor selected Pachulski Stang Ziehl & Jones LLP as Delaware counsel; Law Firm of Appleby as their Bermuda counsel; UBS Securities LLC as financial advisor & investment banker and Kurtzman Carson Consultants LLC as claims and noticing agent. The Debtors have tapped UBS Securities LLC as investment banker and financial advisor. Also on July 29, 2009, ProtoStar and its affiliates, including ProtoStar Development Ltd., commenced a coordinated proceeding in the Supreme Court of Bermuda. John C. McKenna of Finance & Risk Services Ltd. as liquidator of the Bermuda Group. In their Chapter 11 petition, the Debtors listed between US$100 million and US$500 million each in assets and debts. As of December 31, 2008, ProtoStar's consolidated financial statements, which include non-debtor affiliates, showed total assets of US$463,000,000 against debts of US$528,000,000. PROTOSTAR LTD: ProtoStar Dev't Posts $5,596 Net Loss in April ------------------------------------------------------------- At April 30, 2010, ProtoStar Development Ltd. had $820,492 in total assets and $946,145 in total liabilities. ProtoStar Development reported a net loss of $5,596 for the month of April 2010. A full-text copy of the April 2010 operating report is available at no charge at: http://bankrupt.com/misc/protostardevelopment.april2010mor.pdf About ProtoStar Ltd. Hamilton, HM EX, Bermuda-based ProtoStar Ltd. is a satellite operator formed in 2005 to acquire, modify, launch and operate high-power geostationary communication satellites for direct-to- home satellite television and broadband internet access across the Asia-Pacific region. The Company and its affiliates filed for Chapter 11 on July 29, 2009 (Bankr. D. Del. Lead Case No. 09-12659). The Debtor selected Pachulski Stang Ziehl & Jones LLP as Delaware counsel; Law Firm of Appleby as their Bermuda counsel; UBS Securities LLC as financial advisor & investment banker and Kurtzman Carson Consultants LLC as claims and noticing agent. The Debtors have tapped UBS Securities LLC as investment banker and financial advisor. Also on July 29, 2009, ProtoStar and its affiliates, including ProtoStar Development Ltd., commenced a coordinated proceeding in the Supreme Court of Bermuda. John C. McKenna of Finance & Risk Services Ltd. as liquidator of the Bermuda Group. In their Chapter 11 petition, the Debtors listed between US$100 million and US$500 million each in assets and debts. As of December 31, 2008, ProtoStar's consolidated financial statements, which include non-debtor affiliates, showed total assets of US$463,000,000 against debts of US$528,000,000. PROTOSTAR LTD: ProtoStar Dev't Files May 2010 Operating Report -------------------------------------------------------------- At May 31, 2010, ProtoStar Development Ltd. had $820,492 in total assets and $946,145 in total liabilities. The Company had no revenue and expense transactions for the month ended May 31, 2010. A full-text copy of the May 2010 operating report is available at no charge at: http://bankrupt.com/misc/protostardevelopment.may2010mor.pdf About ProtoStar Ltd. Hamilton, HM EX, Bermuda-based ProtoStar Ltd. is a satellite operator formed in 2005 to acquire, modify, launch and operate high-power geostationary communication satellites for direct-to- home satellite television and broadband internet access across the Asia-Pacific region. The Company and its affiliates filed for Chapter 11 on July 29, 2009 (Bankr. D. Del. Lead Case No. 09-12659). The Debtor selected Pachulski Stang Ziehl & Jones LLP as Delaware counsel; Law Firm of Appleby as their Bermuda counsel; UBS Securities LLC as financial advisor & investment banker and Kurtzman Carson Consultants LLC as claims and noticing agent. The Debtors have tapped UBS Securities LLC as investment banker and financial advisor. Also on July 29, 2009, ProtoStar and its affiliates, including ProtoStar Development Ltd., commenced a coordinated proceeding in the Supreme Court of Bermuda. John C. McKenna of Finance & Risk Services Ltd. as liquidator of the Bermuda Group. In their Chapter 11 petition, the Debtors listed between US$100 million and US$500 million each in assets and debts. As of December 31, 2008, ProtoStar's consolidated financial statements, which include non-debtor affiliates, showed total assets of US$463,000,000 against debts of US$528,000,000. PROTOSTAR LTD: ProtoStar Satellite Posts $56,151 Net Loss in April ------------------------------------------------------------------ ProtoStar Satellite Systems, Inc., reported a net loss of $56,151 for the month of April 2010. At April 30, 2010, the Company had $17.6 million in total assets, $16.8 in total liabilities, and $855,332 in net owner equity. A full-text copy of the April 2010 monthly operating report is available at no charge at: http://bankrupt.com/misc/protostarsatellite.april2010mor.pdf About ProtoStar Ltd. Hamilton, HM EX, Bermuda-based ProtoStar Ltd. is a satellite operator formed in 2005 to acquire, modify, launch and operate high-power geostationary communication satellites for direct-to- home satellite television and broadband internet access across the Asia-Pacific region. The Company and its affiliates filed for Chapter 11 on July 29, 2009 (Bankr. D. Del. Lead Case No. 09-12659). The Debtor selected Pachulski Stang Ziehl & Jones LLP as Delaware counsel; Law Firm of Appleby as their Bermuda counsel; UBS Securities LLC as financial advisor & investment banker and Kurtzman Carson Consultants LLC as claims and noticing agent. The Debtors have tapped UBS Securities LLC as investment banker and financial advisor. Also on July 29, 2009, ProtoStar and its affiliates, including ProtoStar Development Ltd., commenced a coordinated proceeding in the Supreme Court of Bermuda. John C. McKenna of Finance & Risk Services Ltd. as liquidator of the Bermuda Group. In their Chapter 11 petition, the Debtors listed between US$100 million and US$500 million each in assets and debts. As of December 31, 2008, ProtoStar's consolidated financial statements, which include non-debtor affiliates, showed total assets of US$463,000,000 against debts of US$528,000,000. PROTOSTAR LTD: ProtoStar Satellite Posts $57,273 Net Loss in May ---------------------------------------------------------------- ProtoStar Satellite Systems, Inc., reported a net loss of $57,273 for the month of May 2010. At May 31, 2010, the Company had $17.8 million in total assets, $17.0 million in total liabilities, and $798,058 in net owner equity. A full-text copy of the May 2010 monthly operating report is available at no charge at: http://bankrupt.com/misc/protostarsatellite.may2010mor.pdf About ProtoStar Ltd. Hamilton, HM EX, Bermuda-based ProtoStar Ltd. is a satellite operator formed in 2005 to acquire, modify, launch and operate high-power geostationary communication satellites for direct-to- home satellite television and broadband internet access across the Asia-Pacific region. The Company and its affiliates filed for Chapter 11 on July 29, 2009 (Bankr. D. Del. Lead Case No. 09-12659). The Debtor selected Pachulski Stang Ziehl & Jones LLP as Delaware counsel; Law Firm of Appleby as their Bermuda counsel; UBS Securities LLC as financial advisor & investment banker and Kurtzman Carson Consultants LLC as claims and noticing agent. The Debtors have tapped UBS Securities LLC as investment banker and financial advisor. Also on July 29, 2009, ProtoStar and its affiliates, including ProtoStar Development Ltd., commenced a coordinated proceeding in the Supreme Court of Bermuda. John C. McKenna of Finance & Risk Services Ltd. as liquidator of the Bermuda Group. In their Chapter 11 petition, the Debtors listed between US$100 million and US$500 million each in assets and debts. As of December 31, 2008, ProtoStar's consolidated financial statements, which include non-debtor affiliates, showed total assets of US$463,000,000 against debts of US$528,000,000. STATION CASINOS: Reports $14,623,000 Net Loss for May ----------------------------------------------------- Station Casinos, Inc. Balance Sheet As of May 31, 2010 Cash and cash equivalents $468,000 Restricted cash 10,337,000 Accounts and notes receivable, net 22,468,000 Interco (payables) receivables (737,557,000) Prepaid expenses 3,827,000 Inventories 14,000 Deferred tax asset current 114,000 -------------- Total current assets (700,329,000) Property & equipment, net 93,061,000 Land held for development 0 Intangible assets 2,485,000 Debt issuance costs 0 Other assets 72,405,000 Investments in subsidiaries 4,117,359,000 Long-term deferred tax asset 38,470,000 -------------- Total assets $3,623,451,000 ============== Debtor-in-possession financing 326,326,000 I/C note & deferred rent payable 0 Current portion of LT debt 0 Accounts payable 570,000 Accrued expenses and other current liabilities 9,805,000 Accrued FIT payable (receivable) 4,923,000 Accrued interest payable 0 DIP interest payable 4,225,000 Payroll & related liabilities 5,427,000 Swap market value current 0 Deferred tax liability current (460,000) -------------- Total current liabilities 350,816,000 LT debt less current portion 0 Long term accrued benefits 0 Deferred tax liability noncurrent 224,431,000 Other long-term liabilities, net 6,673,000 -------------- Total liabilities not subject to compromise 581,920,000 -------------- Liabilities subject to compromise 3,468,865,000 -------------- Total liabilities 4,050,785,000 -------------- Common stock 417,000 Restricted stock 322,428,000 Additional paid-in capital 2,662,113,000 Beginning retained earnings(deficit) (3,346,313,000) Current year earnings(loss) (66,941,000) Other comprehensive income(loss) 962,000 -------------- Total stockholders' equity (427,334,000) -------------- Total liabilities and equity $3,623,451,000 ============== Station Casinos, Inc. Statement of Operations For the Month Ended May 31, 2010 Operating revenue: Other $1,000 -------------- Net revenue 1,000 Operating costs and expenses 5,239,000 -------------- EBITDAR (5,238,000) Land leases 0 Earnings(losses) from JV's 0 -------------- EBITDA (5,238,000) Depreciation 666,000 Amortization 0 Severance 0 Preopening expenses 0 -------------- EBIT (5,904,000) Cancelled debt offering costs 0 Early retirement of debt 0 Loss on lease termination 0 I/C Interest income (610,000) Interest income 1,000 Interest expense (4,689,000) Less: capitalized interest 684,000 Interest expense-JV 0 Change in swap fair value 0 Gain(loss) on disposal 0 -------------- Income before fees, reorganization & income tax (10,518,000) Management fees 1,957,000 Reorganization costs (6,063,000) Federal tax expense 1,000 -------------- Net income(loss) ($14,623,000) ============== Station Casinos, Inc. Statement of Cash Flows For the Month Ended May 31, 2010 Cash flows from operating activities: Net income ($14,623,000) Adjustments to reconcile net income to net cash used in operating activities: Depreciation and amortization 666,000 Shared-based compensation 1,154,000 Change in fair value of derivative instrument 0 Loss on disposal of assets 0 Loss on early retirement of debt 0 Amortization of debt discount 0 Reorganization items 6,063,000 Changes in assets and liabilities: Decrease(increase) in restricted cash (1,000) Decrease(increase) in accounts and notes receivables, net (38,000) Decrease(increase)in inventories and prepaid expenses and other 322,000 Increase(decrease) in deferred income taxes (1,000) Increase(decrease) in liabilities subject to compromise 0 Increase(decrease) in accounts payable 69,000 Increase(decrease) in accrued interest 351,000 Increase(decrease) in accrued expenses and other current liabilities 7,713,000 Increase(decrease)in intercompany payables (26,621,000) Other, net 595,000 -------------- Total adjustments (9,727,000) Net cash provided by (used in) operating activities, before reorganization items (24,350,000) -------------- Cash used for reorganization items (3,398,000) -------------- Net cash provided by (used in) operating activities (27,748,000) Cash flows from investing activities: Capital expenditures (39,000) Intangible assets 0 Proceeds from intercompany sale of land 0 Distributions from subsidiaries, net of investments 396,000 Native American development costs 0 Other, net (684,000) -------------- Net cash provided by investing activities (327,000) Cash flows from financing activities: Borrowings under DIP Financing, net 26,318,000 Payments under term loan, maturity 3 mos. 0 Payments of debt issue costs 0 Capital contributions 0 Other, net 0 -------------- Net cash provided by(used in) financing activities 26,318,000 Cash and cash equivalents: Increase(decrease) in cash and cash equivalents (1,757,000) Balance, beginning of period 2,225,000 -------------- Balance, end of period $468,000 ============== About Station Casinos Station Casinos, Inc., is a gaming and entertainment company that currently owns and operates nine major hotel/casino properties (one of which is 50% owned) and eight smaller casino properties (three of which are 50% owned), in the Las Vegas metropolitan area, as well as manages a casino for a Native American tribe. The Company owns and operates Red Rock Casino Resort Spa, Palace Station Hotel & Casino, Boulder Station Hotel & Casino, Santa Fe Station Hotel & Casino, Wildfire Rancho and Wild Wild West Gambling Hall & Hotel in Las Vegas, Nevada, Texas Station Gambling Hall & Hotel and Fiesta Rancho Casino Hotel in North Las Vegas, Nevada, and Sunset Station Hotel & Casino, Fiesta Henderson Casino Hotel, Wildfire Boulder, Gold Rush Casino and Lake Mead Casino in Henderson, Nevada. Station also owns a 50% interest in Green Valley Ranch Station Casino, Aliante Station Casino and Hotel, Barley's Casino & Brewing Company, The Greens and Wildfire Lanes in Henderson, Nevada and a 6.7% interest in the joint venture that owns the Palms Casino Resort in Las Vegas, Nevada. In addition, the Company manages Thunder Valley Casino near Sacramento, California on behalf of the United Auburn Indian Community. Station Casinos Inc., together with its affiliates, filed for Chapter 11 on July 28, 2009 (Bankr. D. Nev. Case No. 09-52477). Station Casinos has hired Milbank, Tweed, Hadley & McCloy LLP as legal counsel in the Chapter 11 case; Brownstein Hyatt Farber Schreck, LLP, as regulatory counsel; and Lewis and Roca LLP as local counsel. The Debtor is also hiring Lazard Freres & Co. LLC as investment banker and financial advisor. Kurtzman Carson Consultants LLC is the claims and noticing agent. In its bankruptcy petition, Station Casinos said that it had assets of $5,725,001,325 against debts of $6,482,637,653 as of June 30, 2009. About 4,378,929,997 of its liabilities constitute unsecured or subordinated debt securities. Bankruptcy Creditors' Service, Inc., publishes Station Casinos Bankruptcy News. The newsletter tracks the Chapter 11 proceedings of Station Casinos Inc. and its debtor-affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) ********* 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 ***